AAOM Handbook

[OFFICIAL]

INTERNAL USE ONLY

TABLE OF CONTENTS

CONTEXT.......................................................................................................................................... 2 PURPOSE ......................................................................................................................................... 2 TABLE OF CONTENTS..................................................................................................................... 3 ABBREVIATIONS .............................................................................................................................. 4 CHAPTER 1: BUSINESS STRUCTURE PERFORMANCE MODEL BUILDING.......................... . .... 5 1.INTRODUCTION ........................................................................................................................ . ... 6 2.MODELLING AND STATISTICAL TECHNIQUES........................................................................ . . 7 2.1 Software used to build BSP model........................................................................................... 8 2.2 Statistical Modelling ................................................................................................................. 9 3.DEVELOPING A VALUE STREAM MODEL ................................................................................ 10 3.1 Developing the Business Structure......................................................................................... 11 3.2 Obtaining Performance Data for the business structure ...................................................... 12 3.3. Process and Cost Inputs ....................................................................................................... 13 3.4 Modelling the Business Structure ........................................................................................ ..14 Step 1: Modelling the Mine ‘Unconstrained Output’ of valuable mineral:.................................. . 1 5 Step 2: Modelling the ‘Normalized Unconstrained’ valuable mineral: ....................................... . 1 6 Step 3: Special Causes ...............................................................................................................1 7 Step 4: Modelling the ‘Constrained’ Output to the valuable mineral: ........................................1 8 Step 5: Calibration Accuracy of the Base-case..........................................................................2 5 3.5 Model Outputs .......................................................................................................................2 5 3.5.1 Model Outputs Daily...........................................................................................................2 5 3.5.2 Model Output Annual ........................................................................................................2 8 CHAPTER 2: BUSINESS STRUCTURE PERFORMANCE MODEL APPLICATION.................. . . . .. 31 2.1 Setting Business Expectations ............................................................................................. 31 2.2 Setting performance targets................................................................................................... 33 2.3 Testing future scenarios .........................................................................................................3 4 2.4 Prioriti s ation of scenarios to meet Business Expectations .....................................................3 6 GLOSSARY OF VALUE STREAMS – OPERATION (LoW 4).........................................................3 7

Operational Planning: Building a Business Structure Performance Model Page 3 of 39