ABC Mining Company
ABC Mining Optimisation JourneyQ2 2028 · Program quarter 7 of 12
$5.3M realised
On track
Quarterly Optimisation Review · ABC Mining · Q2 · Year 2 · Quarter 7 of 12

Marginally ahead of pace, seven quarters into a three-year commitment.

Client
ABC Mining · Plant 3000
Period
Q2 2028 (Apr–Jun)
Baseline → target
$52.4M → $44.0M by Q2 2029
Engagement ref
JMRO-2028-QOR-Q2
Data refreshed
04 Jul 2028
Access
Read-only extracts
01

Scorecard — the whole state in twenty seconds.

Level 0 · metric tree

Every number below reappears somewhere deeper in this report with its evidence attached. The headline is Balance — the share of in-scope line items sitting inside their balanced band: above the safety-stock floor, below the max/MOQ-adjusted ceiling.

Scope
Line items
84%in-scope · 24,180 of 28,790
Stock value
91%in-scope · $47.1M of $51.8M
Balance · in-scope items inside the band
76.4%
▲ +1.3pts this quarter · +13.4pts since baseline
412 items converging — recent policy changes, stock still migrating; excluded from the headline until they land.
How to read time — everywhere in this reportPast — solidCurrent — filled dotForecast — dashed, approved changes onlyTarget — amber ring
Overstock — above ceiling
15.8% of items
was 26.1% at baseline · forecast 13.9% · target 10%
Overstock value$9.6M
Aged tranche>5yr stock-on-hand1,240 items · $3.1M
Overstock with open ordersincoming stock worsening it — cancel / defer candidates2.1% · $0.7M inbound
Understock — below floor
7.8% of items
was 10.9% at baseline · forecast 6.3% · target 5%
By criticalitythe Vital number is the one that mattersV 0.9% · E 2.1% · D 2.2% · N 2.6%
Understock value at risk$1.8M
Understock with no open ordersexposed, nothing inbound — the alarm metric3.4% · 820 items

The understock uptick since Q4 2027 (7.0% → 7.8%) is the mill-circuit criticality restatements raising floors, not stock disappearing — logged in §02, priced in §03.

Reviewed — program penetration64%
Share of in-scope items that have been through review at least once. The remaining 36% is where the next two years' opportunity lives.
Fix approved — pipeline in flight41%
Of currently imbalanced items, share already carrying an approved change awaiting run-down. Approved ≠ landed; the run-down is tracked in §03.

Measure summary Original · current · target · status

MeasureOriginal — Q3 2026Current — Q2 2028Target — Q2 2029Status
In-scope stock value$52.4M$47.1M$44.0M
On track
Cumulative release vs pace$0$5.3M$8.4M
On track
Imbalanced — items outside the band37.0%23.6%<15%
On track
Overstock — above ceiling26.1%15.8%<10%
On track
Aged tranche · >5yr stock-on-hand$4.9M$3.1M<$1.5M
At risk
Overstock with open orders4.0%2.1%<0.5%
At risk
Understock — below floor10.9%7.8%<5%
At risk
Vital-tier understock2.4%0.9%<1%
On track
Understock with no open orders5.1%3.4%<1.5%
Behind
Reviewed — program penetration0%64%100%
On track
Fix approved — of imbalanced items0%41%≥50%
Behind

Bar = progress from original to target; the tick is where the bar should be at quarter 7 of 12. At-risk rows are within 10pts of pace; the understock slippage traces to the mill-circuit restatements (§02) — floors rose faster than orders were raised; the fix is this quarter's Vital-tier increases (§03).

Approvals per quarter — overstock fixes above the line, understock fixes below
Overstock approvals · last full qtr
6,210
qtr target ≥5,500
On track
Understock approvals · last full qtr
1,080
qtr target ≥900
On track
Open this quarter · review in progress
1,550
1,240 over · 310 under · closes Q2
In progress
Overstock — above ceiling
15.8%▼ −1.5pts qtr
Target <10% by Q2 2029
Overstock value
$9.6M
of $47.1M in scope
Aged >5yr on hand
$3.1M
target <$1.5M
On track

Ahead of the glidepath since Q3 2027. The aged tranche is the drag — it clears by disposal, not policy.

Understock — below floor
7.8%▲ +0.2pts qtr
Target <5% by Q2 2029
Understock value at risk
$1.8M
of $47.1M in scope
Vital-tier exposure
$0.4M
target $0
At risk

Floors rose with the mill-circuit restatements and orders haven't caught up — 820 items have nothing inbound. This quarter's Vital-tier increases are the fix.

02

The program — past, present and future against a fixed line.

3-year arc

At program start, in-scope MRO stock stood at $52.4M. ABC committed to $44.0M by Q2 2029 — an $8.4M working-capital release, net of the protective increases the program requires. The baseline and target move only by logged restatement, never by drift.

The four-value ledger — original · current · expected · targetSignature chart
Burn-down vs required pace
On pace, with $0.4M of margin. At current approval-and-realisation velocity the target is reached in Q1 2029 — one quarter early. The margin is one bad quarter wide; it is not slack.

Restatement log Governance

Performance and restatement are always reported as separate lines — reclassification that changes the optimal is logged openly, so truth-seeking never games the target.

QuarterRestatementItemsReasonEffect on target
Q2 2028Criticality corrections — mill circuit38Post-failure VEDN review raised 38 floors; optimal and target restated▲ +$0.21M
Q4 2027Lead-time class corrections12Vendor 100482 re-banded after sustained 3× lead-time inflation▲ +$0.06M
Q2 2027Duplicate material merge21Cleanse-driven consolidation reduced optimal holdings▼ −$0.09M

Stated together, this quarter: balance improved +1.3pts (performance); target moved +$0.21M via 38 criticality restatements (restatement). Never blended.

03

The quarter — what Q2 2028 contributes.

Working detail

This quarter's run prices 10,240 candidate changes and triages them into a workload that fits ABC's ~240 review-hours. Its recommendation set is worth −$3.9M net stock value and −$2.4M/yr in expected cost — two ledgers, reported separately throughout.

The two ledgers — never blended
Realisation check — last quarter's approvals, projected vs actualAccountability loop

The closeness of those two lines is what makes this quarter's forecast credible. When they diverge, the divergence is reported here first.

Cohort proof — actioned vs untouched backlog
Candidate-to-lane funnel — how 10,240 became a reviewable quarterMethodology
Workload vs review capacity

The quarter in review

The sore spot — the mill train. After ML-02's trunnion bearing failure in February (11 days down, the spare expedited from Perth at triple freight), the reliability team pushed criticality reviews on 340 mill-circuit materials. This quarter's simulation is the first to price those revised criticalities — it's why the Vital-tier increases ($480k) are the largest they've been in the program. Approving them is the cheapest insurance ABC buys this year.

The opportunity — the gold room and tails circuit. Elution heaters, carbon screens and tails pumps were stocked in 2019 for a second CIL train that never cleared feasibility. Demand history now shows them cycling at half the assumed rate; they carry ~$1.1M of the reduction opportunity on their own, and none of it touches a vital spare.

The quiet win. Emergency freight on actioned items fell 38% year-on-year — the Q3 2027 approvals working as simulated. The remaining emergency spend concentrates on the unreviewed backlog, which is the strongest argument for clearing it: the register's oldest untouched items are now its most expensive habit.

Systemic drivers — detected here, resolved elsewhere
Stock value movement — what moved the number this quarter
Transaction load — context, not an imbalance measure
04

The register — the working level, per lane.

Review workflow

Every row carries a review state that persists and rolls forward — the backlog is the program's memory. High-stakes rows link to their dossier (§05), the evidence file behind each recommendation.

High-stakes lane 380 items · individual review · ~210 hrs

MaterialDescriptionUnit priceVEDNMovementCurrent min/maxRec. min/maxΔ Stock valueΔ Annual costDriverConf.State

Reading a row: Δ Stock value is balance-sheet (an increase costs capital); Δ Annual cost is P&L (the recurring cost it avoids) — never netted against each other. Confidence is backtest agreement; Med rows are where the model wants a human.

Bulk lane 7,740 items · approve-by-batch with exception flagging

Gold-room / tails-circuit cohort · 40 items
All Non-critical or Desirable · driver: holding cost · confidence high
▼ −$1.6M
Consumables re-band · 5,210 items
Min/max recalibration on active low-value stock · confidence high
▼ −$1.2M
Slow-mover max reductions · 2,490 items
Max exceeds simulated need at tier service target · confidence high
▼ −$0.9M

Quarantine 1,180 items · shown, reasoned, not recommended

New stock — no demand history · 180 items
Q1 conveyor commissioning · revisit at 12 months of history
held
Campaign-driven demand · 610 items
Shutdown-cycle consumption; steady-state models don't apply · revisit against shutdown calendar
held
Unresolved data · 390 items
Price / lead-time contradictions awaiting targeted cleanse · revisit on data fix
held

The credibility lane — the model naming what it won't judge is what makes the other lanes trustable.

05

The dossier — the evidence file, one per high-stakes item.

Template · shown once

Each of the 380 high-stakes items carries this four-chart file. The reviewer sees the demand, the root cause, the simulated economics, and the sign-off table — no figure is model-generated without its evidence shown.

Material 300044120 · Plant 3000 · Vital · Slow-moving · High confidence · Driver: stockout risk

Gearbox input shaft, CR-East

Hold one more unit. Lead time has tripled on a vital spare protecting a chronic asset; the extra unit's holding cost is trivial against the downtime it prevents.

▲ +$84,200
Δ Stock value · one-time, balance sheet
▼ −$168,400/yr
Δ Annual cost · P&L, expected
Current policy
Min 1 / Max 2
Recommended
1 / 2Min 2 / Max 3
Unit price
$84,200
Linked asset
Crusher CR-East — chronic bad actor
5a · Demand — 41 months history + 12 months probabilistic forecast
5b · Lead time — actual receipts vs system assumptionRoot cause
5c · Simulated annual cost — current vs recommended policyThe evidence
5d · Decision strip — the sign-off table

Provenance — demand from MB51 (41mo); lead times from EKBE; asset linkage from IW39; simulation at the Vital service target (98%) from the agreed consequence baseline; forecast backtested.

06

Appendix — terms, definitions, boundaries.

Program terms

Baseline $52.4M (Q3 2026) · target $44.0M ±0.5 by Q2 2029 · service levels per VEDN tier (V 98% · E 95% · D 92% · N 88%) · carrying rate 18%/yr. Set jointly at program start; fixed except by logged restatement (§02).

Balanced band

Floor = safety stock at the tier service level. Ceiling = max, or MOQ-adjusted receipt peak, whichever is higher. Items whose policy changed within the run-down window are in-transition: excluded from the headline, shown as the converging count.

Extracts used

MB51 (issues, 41mo) · EKBE (receipts / lead times) · MARC/MBEW (policy, valuation) · IW39 (work orders / asset linkage) · ME2M (open POs). Read-only; refreshed 04 Jul 2028.

Method

Probabilistic forecasting (backtested), Monte-Carlo policy simulation (10,000 years per item-policy), triage funnel per §03. Sparse or contradictory items are quarantined, not guessed.

Honesty boundaries

The two ledgers are never blended. Item-level stockout avoidance is never claimed — only cohort divergence. Structural / MOQ-driven stock is attributed to procurement terms, not policy failure. No figure is model-generated without shown evidence.

Reading rhythm

Scorecard (dense) → program (spacious) → quarter (working) → register (tables) → dossier (evidence). One temporal grammar throughout: solid past, filled-dot present, dashed forecast, amber-ring target.