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Duoro Mine

P. Fraser Johnson, Yzah Macalintal

Product #:W33560
Supplier:Ivey
Discipline:General Management, Operations Management
Setting:Peru, 2023
Details:Case (PDF) • 5 pages • 2023-07-03

Subjects:

Process analysisCapacity analysisProcess managementSupply chain managementData miningAnalytics and data scienceBusiness managementOperations and supply chain managementManagement

Industries:

Energy and natural resources sector

Geography:

South AmericaPeru
Your Price:$9.71

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Manuel Hernandez, mill manager at Duoro Mine (Duoro), located near Arequipa, Peru, was considering options for increasing output to take advantage of a recent spike in commodity prices. It was Wednesday, January 25, 2023, and prices for copper and gold, the main products of Duoro, were trading at historical highs compared to their five-year average. The mine manager had asked Hernandez to make recommendations about increasing production, and Hernandez had identified three options. Students are expected to evaluate each option and decide which, if any, would address Diaz’s objectives of increasing output and minimizing financial risks.

Learning Objectives

This case can be used in an undergraduate or graduate course in operations management for a class discussion on basic operations principles. Topics addressed in the case include process flow and capacity analysis. After completion of this case, students will be able to do the following:
  • Understand how operations concepts can be used to diagnose and analyze business operational performance.
  • Assess system capacity and process capability to diagnose potential constraints and develop suitable recommendations.
  • Understand the operational problems created by variability in a process as well as the challenges related to managing variability.
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Case Study: Duoro Mine (English version) | Ivey Publishing