AAOM Handbook

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3. DEVELOPING A VALUE STREAM MODEL The Value Stream BSP model considers interdependencies across a level. There are several steps that are essential in developing an effective, efficient, and reliable BSP model for anyoperation. It is recommended to follow the order of steps to develop a calibrated value streamBSP model within boundaries of discretion. 3.1 Developing the Business Structure The Business Structure represents the basis and the starting point of a BSP model. The Business Structure should be developed by the configured accountable roleholder to ensure that the most accurate Business Structure is represented. The resulting business structures should be the same business structures used for value stream costing at the appropriate level of work complexity. The Business Structure should contain all processes of the operation in the flow of valuable mineral at the appropriate level of complexity for the BSP model being developed. A process is defined as any step within the value chain of the operation where the material is either transformed, transferred or stored. Hence, it is recommended to use the objects depicted in Figure 1 below to develop the Business Structure.

Figure 1 - Recommended objects to use to develop the value stream Business Structure • Transform process - to change the specification/composition of the product. It is represented by a circular object. ‘Break rock’, ‘break ore’ and ‘crush ROM’ are all examples of Transform processes. • Transfer process - to change the location of a product, i.e. move the product to a different location. It is represented by an arrow. ‘Move Ore’, ‘Move Waste’, ‘Pipeline’ are all examples of transfer processes. • Store process – to create a buffer between ‘transform’ or ‘transfer’ processes. It is represented by a triangular object. ‘ROM stockpile’, ‘Crushed ROM stockpile’, ‘Final Product stockpile’ are all examples of store processes. The accountable roleholder must specify processes that are required to achieve the purpose. These processes will then be modelled in the BSP model. Models are defined based on the value driving structure of the process and the level of detail needed to identify constraints/opportunities. Organization structure should be based on the logical buffers and nodes of the value structure. It is critical to distinguish the levelof the value stream that is being modelled as shown in the example below:

Operational Planning: Building a Business Structure Performance Model Page 7 of 39