Dynamic modelling of labor productivity in mining- Case study: Chadormaluo mining and industry complex

In despite of all progress in technology in mining industry, still labor is one of the key factors in mining operation. This paper presents a system dynamics approach to evaluate the mining labor productivity. Therefore, after the identification of main effective variables, two quantitative and qualitative models were built. The qualitative model illustrates the complex interrelated structure of effective variables in 14 causal and feedback loops. The quantitative model is based on mathematical relationship between variables. Finally, the model was implemented in Chadormaluo mining complex as one of the main producers of iron ore and concentrate in Iran. Simulation of labor productivity shows that 50% decrease in skill and motivation will result 10% and 13% decline in labor productivity, respectively. This model helps managers to evaluate the influence of effective factors on labor productivity and to have appropriate decision making.