As the mining and metals industry continues to grow, capital productivity remains an ongoing issue, with huge projects often leading to overruns and over-budgeting. These issues are common in the mining industry, leading to huge losses and missed opportunities. Companies must strive to overcome these challenges to increase efficiencies, reduce costs, and optimize outcomes.
Capital productivity is a way to measure how well a company uses its investments to create outputs. It helps companies see how much they are getting for their money on a big scale. To put it simply, capital productivity evaluates the value received of investments worth billions of dollars.
One of the main causes of low capital productivity in mining is the lack of proper planning in the early stages of projects. Many projects lack rigor in the early planning stages, which leads to underestimation of project costs and schedules. Additionally, resource allocation issues, including underutilization or overutilization, contribute to low capital productivity.
To overcome these issues, the mining and metals industry must embrace a holistic approach to project management that takes into account the entire project lifecycle. Robust planning and scheduling, agile supply chains of resources, effective communication with informed decision-making, and capital portfolio management to enhance long-term business performance are all critical elements of the project management process. By adopting these processes, organizations can mitigate risks, enhance collaboration, and facilitate transparency.
Mining and metals companies are expected to face ongoing uncertainty, which could make it difficult to make decisions about investing capital. However, this situation also presents a chance for companies to make changes. By improving capital productivity now, companies can better handle the current volatility and set themselves up for success on future projects.”
Investing in new equipment and technology to enhance traditional project management requires a large cash outlay and can limit flexibility in pursuing other business investments. Equipment leasing is a budget-friendly option, as it requires little or no investment up-front. Contact us at firstname.lastname@example.org today to learn how your company benefits by conserving cash and acquiring the business capital you need.