AAOM Handbook

changing performance targets for one or more processes will change the performance targets for the business and vice versa. In the Operating Model this is done through the creation of a layered series of flow sheets that identify the key transform, transfer and store activities, and indicates the connections between these. For example: • At the layer of the Business Structure for the regional operations of a mining company the flow sheet may show several operating locations within the region, collectively contributing to the regional performance. • At the next layer of the Business Structure, for a single operating location, the flowsheet may show several open pit and or underground mines, connected via stockpiles and transport networks to an ore common processing facility. • At the next layer of the Business Structure for a mine or process plant the flowsheet will show processes for transforming, transferring and storing product or services (e.g. ore extraction locations, transport systems, crushing systems, stockpiles or bins, etc.). Following are a few examples of what such flow sheets may look like. Note that the dependencies are relatively simple and vertical in the first chart, i.e. the results on one level depend on those below it, and the results across a level are independent. This type of flowsheet is commonly called a Value Driver Tree. However in the following two charts more complex dependencies in the flow through the process. These type of charts are commonly called Value Stream Maps.

Generic Company

Company

Region 1

Region 2

Region 3

Operation 1

Operation 2

Operation 3

Operation 4

© McAlear Management Consultants 2006

Operational Planning: Set Performance Targets

Updated: August 2018

Page 15