The scientific calculation of the required human resources for maintenance in the engineering department at Sishen iron ore mine

Schreuder, Hugo Amos Lambrechts (2007-12)

Thesis (MBA)--Stellenbosch University, 2007.

Thesis

ENGLISH ABSTRACT: Human resources budgeting at Sishen mine had been done, for as long as the researcher has been employed at the mine, according to history as well as according to the demands of the financial situation. Consequently, human resources shortages have been corrected by external labour which is often more expensive than internal labour. During the annual budgeting period when top management applies pressure to cut costs, the operations budget is easy to defend. With the help of Excel spreadsheets or maintenance management systems, maintenance managers can present strong arguments for not cutting the operations budget. Budget deficits are then easily corrected by means of negative adjustments to the human resources budget. This research will explore the issue of whether a tool exists to calculate the human resources budget scientifically. A target was set to develop a tool or model for human resources budgeting or to investigate whether such a tool does not already exist. A literature survey was done to determine world best practices regarding the calculation of human resources budgeting. The literature studied guided the researcher to a computerised maintenance management system (CMMS) and it was found that Sishen already has one of the best (SAP) in place. Sishen even has a process (Routine Work Management or RWM) in place which helps to get all maintenance information into SAP to make the necessary information available for effective maintenance. It was further found that SAP, which has been used by the mine for several years, can already provide the human resources requirements for any future period. The RWM process which helps to get information in and out of SAP has been in use for some time already. Unfortunately the process was poorly executed and the information is not reliable. This statement is supported by the internal (Kirstein, 2006) and external (Aurea, 2006) audits done at the mine during 2006. The external audit was done by Aurco (2006). The author concluded that Sishen has a tool but not a strategy to utilise RWM successfully. One of the reasons why RWM was poorly executed was the fact that there is a lack of support from the people in the workplace. These individuals claim that they were not consulted when RWM was introduced at the mine and as a result they did not buy in. A proper change management process was not followed and the employees suspected that RWM was implemented to play policeman or to measure how much spare time they have and reduce the workforce accordingly, as in the case of the Prometheus project. Consequently they admit to manipulating RWM's measured outcomes, ignoring it or deliberately undermining it. They added that RWM is easy to manipulate and perceived it as a farce by many of the participants, A decision was taken to use the Kotter change management process to run a project to get RWM to the required level. Kotter's eight steps for successful large-scale change can be utilised with great success to achieve the required changes. After a brainstorming session and from the recommendations of the two audits a list of ideas was compiled. These ideas should help to get RWM to a level where human resources requirements can be drawn from SAP for any period in the future. Although the research was aimed at getting human resources budgeting from SAP, it will also have other advantages. The ratio between planned and unplanned maintenance will be better because RWM will ensure better maintenance

AFRIKAANSE OPSOMMING: Mannekragbegroting op Sishen-myn is, vir solank die navorser deel is van die myn, gedoen volgens die behoeftes van die verlede asook volgens wat deur die finansiele situasie toegelaat is. Gevolglik het dit dikwels gebeur dat die tekorte aan mannekrag aangevul is met huurarbeid wat dikwels duurder is as eie mannekrag. Tydens die begrotingsrondte kan die geld wat aangevra word vir die instandhouding van die toerusting goed beveg word omdat die instandhoudingspersoneel waterdigte argumente kan aanvoer oor hoe die begroting bereken is. Begrotingstekorte word gevolglik maklik reggestel met negatiewe aanpassings op die mannekragbegroting. Hierdie studie gaan die bestaan ondersoek van 'n gereedskapstuk of model om die mannekragbegroting wetenskaplik te kan bereken. Daar is 'n doelwit gestel om 'n model te ontwikkel vir mannekragberekening of om vas te stel of daar nie reeds iets bestaan nie. 'n Literatuurstudie is gedoen om vas te stel wat wereldwye beste standaarde ten opsigte van mannekragberekening is. Dit het die navorser gelei na gerekenariseerde instandhoudingsbestuurstelsels (CMMS) en daar is bevind dat Sishen reeds een van die beste stelsels gebruik (SAP). Sishen het selfs 'n proses ("Routine Work Management" of RWM) om alle instandhoudingsinligting in SAP te kry sodat die regte inligting weer beskikbaar kan wees vir effektiewe instandhouding. Daar is verder bevind dat SAP, wat reeds vir verskeie jare in gebruik is, enige tydperk in die toekoms se mannekragbehoeftes kan bepaal. Die RWM-proses wat moet help om inligting in en uit SAP te kry, is ook reeds geruime tyd in gebruik, maar ten spyte daarvan word die proses afgewater en is die inligting nie betroubaar nie. Hierdie stelling is bewys deur middel van twee ouditte wat in 2006 op RWM gedoen is. Die een audit was 'n interne audit terwyl die ander deur die maatskappy Aurea gedoen is. Die afleiding kon dus gemaak word dat daar wel 'n gereedskapstuk is, maar dat geen strategie bestaan om dit effektief te gebruik nie. Een van die redes waarom RWM as 'n afgewaterde proses beskryf kan word, is 'n gebrek aan ondersteuning deur die mense in die werksplek. Die mense beweer dat hulle nie geken is ten tye van die bekendstelling van RWM nie en hulle het dus nie ingekoop nie. Die afleiding is gemaak dat daar nie goeie veranderingsbestuur toegepas is toe RWM aan die myn bekendgestel is nie. Die werknemers het vermoed dat RWM ingestel is om hulle te polisieer of te bepaal hoeveel vrye tyd hulle het en die werksmag dienooreenkomstig af te skaal, soos in die geval van die Prometheusprojek. Gevolglik het hulle erken dat hulle die RWM se uitkomste gemanipuleer het, dit geignoreer het, of doelbewus ondermyn het. Hulle het bygevoeg dat RWM maklik gemanipuleer kan word en dat baie dit as 'n klug beskou. Daar is besluit om die Kotter-model te gebruik om 'n projek te loods om RWM op die vereiste standaard te kry. Dit word as die geskikste model beskou om die nodige veranderingsbestuur toe te pas. 'n Lys van idees is opgestel na aanleiding van 'n dinkskrumsessie met die werknemers asook van voorstelle wat in die twee ouditverslae gemaak is. Herdie idees moet RWM in plek kry sodat mannekragbehoeftes vir enige tydperk in die toekoms vanuit SAP verkry kan word. Alhoewel die navorsing daarop gemik was om mannekragbegroting vanuit SAP te bekom, hou dit ook 'n ander voordeel in, naamlik 'n beter verhouding van beplande tot onbeplande instandhouding omdat goeie RWM-prosedures beter instandhouding en gevolglik beter beskikbaarheid gaan verseker.

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