AAOM Handbook

technical theory is a recipe or formula that makes reliable predictions about the outcomes. For example; • if we know that the feed, chemistry and residence time of the leach circuit are correct, then we can predict the gold that will be produced, and • if we know that the drill pattern, charging and firing sequence of the blast are correct, then we can predict the blast outcomes.

In a process where there is a significant lag time, or a significant step in output, we should monitor the Theory and/or Input KPIs consistently.

The KPIs for a process should not be altered unless the Purpose and/or design (Theory) of the process are altered.

The KPIs will be different at different layers of the Business Structure, and hence the accountability for or ownership of the KPIs will depend on the level of the Business Structure – related to the level of work for a role. The Purpose KPIs of a lower level of the Business Structure will be inputs (Theory KPIs) to a higher level of the Business Structure.

Group CEO

AA Free Cash Flow

ROCE

Dividends

Group Total Capital

Investment Capital

BU CEO

BU Free Cash Flow

ROCE

Projects

BU Total Capital

Investment Capital

Margin

COO

Unit Sales Price

BU Unit Op Cost

BU Product Volume

SIB Capital

Marketing

GM

Site Unit Op Cost

Site Production

Effectiveness

Process Manager

Efficiency

Process Unit Op Cost

Process Production

Calculation Node

© McAlear Management Consultants 2006

Operational Planning: Set Performance Targets

Updated: August 2018

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