Coming to a mine near you: ISO9000

What do Iron Ore Co. of Canada, Quebec Cassiar Mining, Bell Northern Research, Bombardier and Dupont Canada all have in common?

They are all registered with ISO9000, a system of quality standards which is part of the International Organization for Standardization. Other mining operations have adopted ISO9000 standards and are working toward registration; these include Placer Dome’s Endako molybdenum mine in central British Columbia and Inco’s nickel refinery in Sudbury, Ont. ISO9000 serves as a management model for suppliers in the supply of specific products or services. Aspects include reviewing contracts, purchasing, process control, training and many processes associated with “quality management” and “continuous improvement.” Implementation of the system entails using a procedure manual and requires that audits be performed by registered “quality auditors.” Semi-annual or annual audits are performed on-site. Governments of 55 countries, including Canada, the U.S., Japan and Britain, have adopted the program for their operations.

Most companies adopt ISO9000 standards because their clients demand it. The initial interest has been in Europe, where about 20,000 companies are registered in the United Kingdom alone and the remaining 200,000 are expected to register before the European Community deadline of 1996.

In the U.S., an estimated 1,000 companies are registered; 200 were registered in early 1993. In Canada, an estimated 400 companies have sought registration, according to the National Research Council.

The other big push has come from automakers, such as Renault in France and the “big three” in Detroit — Chrysler, Ford and General Motors. As U.S. automakers struggled to recapture the market from the Japanese, many adopted “continuous improvement” programs. They then demanded that steel suppliers prove they could supply a consistent and reliable product which would not have to be inspected on delivery. “No one is making ISO9000 a condition of sale yet,” says Ralph Krueger, quality assurance co-ordinator for Dofasco. “But they seem to be heading in that direction.”

The steel makers, in turn, have set up a system of audits to survey their suppliers. In the 1980s, a rapid growth in supplier audits cost suppliers and steel companies time and money, sometimes with inconsistent and confusing results. Quality assurance managers complained that their staffs were spending up to a quarter of their time visiting auditors from different companies. In 1991, after two years of discussions and a pilot project, 13 steel companies instituted the Steel Industry Supplier Audit Process (SISAP), based on ISO9000 guidelines. “A mining company may decide to publish the audit report, but SISAP keeps them confidential,” says John Bytner, manager of operations for SISAP.

SISAP publishes a list of audited companies monthly, but only after a release has been signed. Over the past several months, Climax Molybdenum Co., Cominco, Dravo Lime Co. and Reynolds Metals Co. have been included on the lists.

In addition to attracting customers, ISO9000 has been shown to reduce costs. Robert Kelly, director of quality improvement projects for Iron Ore Co. of Canada, says it is too early to quantify the benefits of the program, but costs are expected to be brought down over the long term. Gil Clausen, mine manager for Placer Dome’s Endako mine, has already achieved more than a 10% improvement in mine production, as well as a 40% reduction in unscheduled maintenance and improved control of sulphur and copper in end-products. Many companies are looking at ISO9000 as the first step to continuous improvement. Many, however, will initially register certain product lines, smelter operations or refineries prior actually to putting the system in full swing; this is primarily due to the cost and commitment that are required. Mining companies that produce different grades of concentrate or final products will be the first to look at ISO9000 whereas gold producers will likely not be attracted to it because of the costs of registration. Mining companies are looking at many ways to remain competitive — from developing markets for their products to reducing costs. Although these companies depend on exploration to replace mined reserves, strict quality control procedures will not likely be applied to exploration, which, to be successful, requires a strong degree of creativity, luck and suitable budgets. Exploration managers can improve performance by adopting aspects of quality control processes such as an emphasis on training, prescribed procedures for contract specifications and routine laboratory audits. The philosophy behind ISO9000 and continuous improvement, which asks us to find better ways to do everything, can be applied to any business. These programs are about changing attitudes as much as monitoring quality.

In response to increasing interest in quality control in mining and exploration, the Toronto Geological Discussion Group and X-Ray Assay Laboratories are organizing a 1-day meeting at the Royal York Hotel in Toronto on Oct. 13.

— Lynda Bloom is a geochemical consultant with Analytical Solutions Ltd.