AAOM Handbook

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Once the appropriate Business Structure of the operation has been established as shown in Figure 2 and purpose and theory measures defined, the accountable roleholder can then model the Business Structure.

Figure 2 - Example of an Operation (LoW4) Business Structure

3.2 Obtaining Performance Data for the business structure. In a brown-fields operation, representative performance data is used to create realistic statistical distributions for the calibrated base-case scenario in the BSP model. It is, therefore, essential to obtain at least the previous year’s data that will be representative of an annual cycle or the previous three year’s data for the full value stream and cost. However, the data collection is not defined by time, but by scenarios that need to be considered e.g. vessel maintenance every two years or long-time between events operational risks. Performance data needs to be relevant to allow selection of representative operating level from the control chart. It is of utmost importance to ensure that the performance data collection process is done correctly by the KPI owner i.e. accountable process owner according to the specified business structure and measures. Performance data needs to be obtained from the asset for which the BSP model is being built, unless the operation is green fields. Representative, stable operating level (continuous distribution parameters) togetherwith dependent variation will be used to generate a full year of probable random outcomes as required to calibrate the model as described in section 3.3 for transform and transfer processes and storage. In a green-fields operation, guidance is to obtain mean or mode from design parameters or assume industry norm for variability and operational risks to define distribution types or apply expert knowledge to calibrate model and apply forecast cost parameters for the planning period.

Operational Planning: Building a Business Structure Performance Model Page 8 of 39