Volume or Cost: Why Choosing One Is a Sign Something’s Not Working
When production targets are missed, the issue often runs deeper than it seems
Every operation wants the same two things: More volume. Lower cost. But every month, someone in the organisation is forced to decide where to lose less, production or margin. It becomes a trade-off. One that nobody wants to make, but many accept as part of the job.
At Lead Asset Management, we’ve seen this play out in dozens of mining operations. And the underlying issue isn’t always poor performance. Often, the numbers look fine – 85% availability, strong utilisation, well-documented strategies.
But targets still aren’t met.
Why?
Because data, planning and execution are misaligned.
When the numbers don’t add up, but still feel right
We’ve worked with high-performing teams whose KPIs look solid on paper, but who miss their output goals month after month. And when we dig in, we usually find one (or more) of these issues:
- Data doesn’t reflect reality on site
Teams don’t trust the numbers, or worse, they act on them without context. - Asset strategies aren’t grounded in operational behaviour
Plans were developed generically, not with the nuances of how the asset actually performs. - Planning, reliability, and execution operate in silos
Without integration, even well-built plans can collapse under pressure.
The result? Reactive operations, rising costs, missed targets – and no clear view of what needs to change.
ISO 55001 reminds us: integration matters
According to ISO 55001, effective asset management depends on alignment between planning, reliability and execution. But in practice, these pillars are often underdeveloped or inconsistently applied.
Global studies back this up: Mining productivity remains ~25% below early 2000s levels, despite major technological investments, largely due to ongoing inefficiencies and gaps in asset strategy execution.
Put simply:
It’s not about choosing volume or cost.
It’s about building operations that can support both.
What to do when production targets aren’t being met
If your site is consistently falling short, even when the metrics look “acceptable”, here’s what we recommend:
- Challenge the assumptions behind your KPIs
Are your availability and utilisation metrics tied to meaningful outputs? Or are they detached from production reality? - Validate your asset strategies in the field
Check whether current maintenance plans, task frequencies and inspection logic reflect how assets are actually operating; not just what was designed on paper. - Break the silos
Bring Reliability, Planning and Execution together with shared ownership over outcomes. This integration changes everything. - Use data as a conversation starter, not a report
Frontline engagement is essential to interpret what the data really means, and to act on it with confidence.
From misalignment to momentum: how we support the shift
At Lead Asset Management, we don’t just offer technical reviews, we partner with your team to uncover what’s missing between the plan and the performance.
We support operations to:
- Refine their asset strategies
- Integrate planning and execution functions
- Improve visibility across departments
- Align maintenance and production goals
- Make better decisions based on real operational limits and possibilities
The outcome?
Operations that are prepared, not pressured.
Assets that deliver, not just respond.
And teams that can scale performance sustainably — without choosing between cost and volume.
Are your assets ready to support your production goals, or are they just reacting to them? Let’s work together to build operations that do both
LEAD Asset Management is a Mining Asset Management business in Perth: We provide consultation services for Mining, Utilities, Gas & Oil Industry in WA, Australia. Asset Management Services Perth: delivering tailored asset management solutions for mining in WA. Asset management strategies, projects, operational readiness, careers in asset management in Perth, Australia and more…Contact Lead Asset Management today.