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The Evolution of a Performance Measurement Project at RTZ

Author

Listed:
  • Graeme S. Pauley

    (Rio Tinto Technical Services, Castlemead, Lower Castle Street, Bristol BS99 7YR, United Kingdom)

  • Richard J. Ormerod

    (Warwick Business School, Warwick University, Coventry CV4 7AL, United Kingdom)

Abstract

In 1994, RTZ Corporation plc, the world's largest mining company, tried to reconcile (a) the desire of central management to compare performance across mine sites with (b) the desire of local management to judge performance in their own terms. The company began a project to establish a method of measuring open-pit productive capacity, to spread best practice, and to motivate higher performance. Initially we saw the solution as a simple model of equipment availability using hard OR derived using a participative process based on soft OR. Trials in Australia, Southern Africa, and North America showed that we needed to combine various hard and soft OR methods and to move the emphasis to achieving breakthroughs in performance. The latest trial resulted in an increase in production of over 25 percent in the first year. The results indicate that soft and hard OR methods can be combined to good effect to produce tangible results.

Suggested Citation

  • Graeme S. Pauley & Richard J. Ormerod, 1998. "The Evolution of a Performance Measurement Project at RTZ," Interfaces, INFORMS, vol. 28(4), pages 94-118, August.
    • Handle: RePEc:inm:orinte:v:28:y:1998:i:4:p:94-118
    DOI: 10.1287/inte.28.4.94
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    References listed on IDEAS

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    1. Ormerod, RJ, 1998. "Putting Soft OR Methods to Work: Information Systems Strategy Development at Palabora," Omega, Elsevier, vol. 26(1), pages 75-98, February.
    2. Richard J. Ormerod, 1996. "Information Systems Strategy Development at Sainsbury's Supermarkets Using “Soft” OR," Interfaces, INFORMS, vol. 26(1), pages 102-130, February.
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    Citations

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    Cited by:

    1. Howick, Susan & Ackermann, Fran, 2011. "Mixing OR methods in practice: Past, present and future directions," European Journal of Operational Research, Elsevier, vol. 215(3), pages 503-511, December.
    2. R J Ormerod, 2005. "Intellectual and practical journeys," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(7), pages 874-876, July.
    3. R J Ormerod, 2008. "The transformation competence perspective," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(11), pages 1435-1448, November.
    4. Small, Adrian & Wainwright, David, 2018. "Privacy and security of electronic patient records – Tailoring multimethodology to explore the socio-political problems associated with Role Based Access Control systems," European Journal of Operational Research, Elsevier, vol. 265(1), pages 344-360.
    5. Georgiou, Ion, 2012. "Messing about in transformations: Structured systemic planning for systemic solutions to systemic problems," European Journal of Operational Research, Elsevier, vol. 223(2), pages 392-406.
    6. Irena Ali & Mathew Zuparic & Iain Macleod & Phuong La & Yi Yue, 2017. "Complex socio-organisational phenomena and ill-defined problem spaces: a multi-method approach to the rescue," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(8), pages 919-934, August.
    7. Espinosa, Angela & Reficco, Ezequiel & Martínez, Andrea & Guzmán, David, 2015. "A methodology for supporting strategy implementation based on the VSM: A case study in a Latin-American multi-national," European Journal of Operational Research, Elsevier, vol. 240(1), pages 202-212.
    8. Mingers, John & Rosenhead, Jonathan, 2004. "Problem structuring methods in action," European Journal of Operational Research, Elsevier, vol. 152(3), pages 530-554, February.
    9. M den Hengst & G-J de Vreede & R Maghnouji, 2007. "Using soft OR principles for collaborative simulation: a case study in the Dutch airline industry," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(5), pages 669-682, May.
    10. R Ormerod, 2005. "Putting soft OR methods to work: the case of IS strategy development for the UK Parliament," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(12), pages 1379-1398, December.
    11. Frederic H. Murphy, 2005. "ASP, The Art and Science of Practice: Elements of a Theory of the Practice of Operations Research: Expertise in Practice," Interfaces, INFORMS, vol. 35(4), pages 313-322, August.
    12. Goddard, Maria & Mannion, Russell & Smith, Peter C., 1999. "Assessing the performance of NHS Hospital Trusts: the role of `hard' and `soft' information," Health Policy, Elsevier, vol. 48(2), pages 119-134, August.
    13. K Kotiadis & J Mingers, 2006. "Combining PSMs with hard OR methods: the philosophical and practical challenges," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(7), pages 856-867, July.

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    Keywords

    industry; mining/metals;

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