AAOM Handbook

Business Process Framework

Labour, Materials & Equipment

Work Management

Set Expenditure Budget

Resourcing

Set Production Strategy

Set Operating Master Schedule

Set Performance Targets

Set Business Expectations

Approve Work/Costs

Schedule Work

Execute Work

Process Performance

Plan Work

Set Service Strategy

Modify or Adapt the Business

Measure Social Process

Measure Work Manag’t

Measure Output

Analyse and Improve

Careful observation of highly reactive Processes could lead to the conclusion that the only elements of the BPF that are occurring are the resourcing and execution of urgent work, and that this is happening in a disorganised, ineffective and inefficient manner. That is, the failure to implement the other elements of the BPF may not stop the Process completely, but will cause it to perform well below its potential. The above situation can occur because most of the elements of the BPF are Support work. Those elements between Set Performance Targets and Scheduling are Support activities completed in order to set up the Resourcing and Execution of the Production and Service work for success. Measurement and Analyse and Improve are also Support activities, but of a feedback nature, since they provide the data and approach to improve the Process. However, getting the Support activities of the BPF effectively implemented can significantly reduce the level of variation and waste in Process outcomes, which can add significantly to the value delivered. While we may not always be conscious of it, we appreciate and depend on the Processes and systems we use to act in a predictable and consistent manner. If they don’t, it generally produces confusion, uncertainty and waste. The outputs of poorly controlled systems may exhibit erratic and unpredictable performance, and large variations in the output. The following chart shows the actual daily output from a mine. The Value of Low Variation in a Process.