Performance Management Model of Sustainable Safe Production at Deep Mill Level Zone PT. Freeport Indonesia

One of the mine expansions that is expected to accelerate the production rate of PT Freeport Indonesia is the Deep Mill Level Zone (DMLZ) mine. The block caving mining method used at the DMLZ mine results in higher productivity levels at lower operating costs but requires ongoing equipment maintenance. This research aims to describe the factors and criteria that determine the production process, find a performance management model, and find the right strategic priorities to increase productivity at DMLZ mine. We analysed the condition of the maintenance management system at the DMLZ mine to find solutions and strategies so that equipment maintenance could be managed effectively. Sustainable Safe Production performance management is developed based on the Balanced Scorecard (BSC) approach combined with the Analytical Network Process (ANP), which is expected to determine the priority of solutions and strategies based on predetermined criteria and indicators. This performance management model considers six perspectives: finance, customers, production, safety, internal business processes, and learning and growth processes as benchmarks in measuring performance. We explained the determination of priority strategies that can be done to achieve three goals in sustainable safe production management: achieving production targets, safe and healthy mining processes, and achieving operational cost-effectiveness. Keywords: analytical network process (ANP), balanced scorecard (BSC), performance management, safe production, sustainable productio

Model manajemen kinerja sustainable safe production di Deep Mill Level Zone PT Freeport Indonesia

PT Freeport Indonesia (PTFI) has now shifted its production operations to underground mining. It has operated underground mining in four mining areas, namely the DOZ (Deep Ore Zone), Big Gossan, DMLZ (Deep Mill Level Zone), and GBC (Deep Mill Level Zone) mining areas. Grasberg Block Cave). One of the mine expansions that is expected to accelerate PTFI's production rate during this transition/transfer period is the DMLZ mine. The block caving mining method used at the DMLZ mine can produce higher productivity levels with lower operating costs but requires large capital investment costs and continuous mine maintenance. Success in the production process at the underground mine is also determined by the smooth operation of machinery and equipment as part of the existing technology to support the entire production process at the DMLZ mine. Maintenance activities need to be carried out to keep machines and or production equipment to work in optimal conditions in underground mines and to extend their economic life. Negligence and ineffectiveness in carrying out maintenance on production machines and equipment can cause more significant losses; this is because they can cause incidental damage to machines or equipment and can even lead to the cessation of the production process. For this reason, strategies and methods are needed that can assist in deciding and determining what information is important at each different level/hierarchy, knowing the needs at each level and for the company as a whole, making it possible to decide on a maintenance strategy and analyze system, resource, and environmental requirements, and organizations needed to decide which strategy to implement. Technological advances are also utilized to ensure safe, secure, and productive underground mining operations. Optimization of technology utilization has been carried out by implementing and using data science, machine learning, and an integrated cross-functional agile team to identify opportunities and drive overall performance improvements. Sustainable safe production performance management is committed to being open through a participatory process for continuous evaluation and improvement, which is focused on the company's long-term economic performance. Therefore, not only economic and cost variables are considered, but the achievement of productivity (productivity) and a safe and secure mining process is also a consideration. The sustainable safe production performance management model in this study was developed using a balanced scorecard model approach combined with an analytical network process which is expected to determine priority solutions and strategies based on predetermined criteria and indicators. In several studies on performance management, the balanced scorecard (BSC) and analytical network process (ANP) methods are widely used to develop decision-making models, develop strategies, and create models for performance measurement and evaluation. In this study, the authors use a combination of BSC and ANP to develop a sustainable safe production performance management model and to develop an effective and efficient priority strategy to increase productivity at the DMLZ mine. The Sustainable Safe Production performance management model considers six perspectives, namely financial, customer, production, safety, internal business processes, and learning and growth perspectives as benchmarks for measuring performance. The discussion on determining the various key success factors in each perspective is the subject of this research discussion. In closing, at the end of this research, it will also discuss the priority determination of various alternative strategies that can be carried out to achieve three goals in sustainable safe production management, namely achieving production targets, safe and secure mining processes, and achieving operational cost effectiveness. The purpose of this study is to identify the factors and criteria that determine the achievement of production at the DMLZ underground mine, analyze the appropriate performance management model to be applied to the maintenance system at the DMLZ mine, and determine the priority of various alternative strategies to increase productivity at the DMLZ mine