AAOM Handbook

SS.00 Set Service Strategy

Context

Within the Operating Model three terms 1 are used to classify different types of activity that can be applied to a process. These are;

1. Production Work – activities directly involving transferring, transforming or storing goods or services within a process. For example: a. in a mining/mineral processing environment; blasting, hoisting, stockpiling, grinding, smelting. b. in a power generation environment; transferring fuel, transforming energy (e.g. oil to heat, rotation of alternator to electricity), transforming voltage & current levels and transmitting power over lines. c. in a procurement and supply environment, placing orders, receiving, warehousing and issuing goods. Note: The world is full of interconnected processes, and the output of one process may produce and/or deliver a product or service that is an ingredient, reagent or consumable in another process. In such cases the process that is delivering the ingredient, reagent or consumable may be viewed as providing a 'service' to the primary process, and hence it may be tempting to classify all work taking place in the 'service' process as service work. This approach does not fit with the definition of Production and Service work adopted within the Operating Model, since the 'service' process is also transferring, transforming or storing goods or services. Hence, in the Operating Model, all activities involved in transforming, transferring or storing goods or services, in any process, are defined as the Production work of that process. 2. Service Work – activities involved in identifying and managing threats related to a process (i.e. to both the process and its environment). For example: a. in a mining/mineral processing environment; monitoring and maintenance of environmental controls, monitoring and maintenance of ground support or pit walls, monitoring and maintenance of roads, monitoring and maintenance of equipment. b. in a power generation environment; monitoring and maintenance of environmental controls, monitoring and maintenance of equipment.

1 These terms are adapted from the work of Macdonald Associates.