AAOM Handbook

PS.03 Specify Production Process Work Steps

Context

Within the Operating Model the term Production work is used to describe the actions directly associated with transferring, transforming or storing the goods or services that will form the output of the process. For example: a) in a mining/mineral processing environment; blasting, hoisting, stockpiling, grinding, smelting. b) in a recruitment services environment, advertising, screening applications, interviewing, reference checking, offer preparation. c) in a procurement and supply environment, placing orders, receiving, warehousing and issuing goods.. The basic transform, transfer and store steps, and the sequence for their execution, in a Production process are determined in the design of the process. This is guided by the Purpose of the process, the inputs available to it and the underlying theory (which includes physics, chemistry and technology) applied to deliver the Purpose. Hence, the basic Production process steps, and there sequence, do not change unless one of these three change. For example, in a mining process the choice of blasting as the theory to fragment ore defines the basic drill, blast, load and haul steps and sequence for the process. While the location, timing and scale of these will vary over time, in accordance with the Life of Mine plan and schedule (which drives the Operating Master schedule and its content), the basic Work Packages and sequence is defined by the strategy choice. In mineral processing the choice of theory will similarly define the work steps and sequencing, however the location will be fixed and the timing and scale will be determined by choices around utilisation and operating rate. Setting a Production Strategy therefore requires a correct understanding of the nature, sequence and relationships of the distinct transform, transfer and store steps of the Production process. A flowchart is an effective way of communicating this information.

Purpose

To specify the flow of steps that make up the Production process.

Quantity

• One flowchart of the Production process for each Productive Unit.

Quality

The flowchart shall identify each distinct transform, transfer and store step that is be performed on a product or service within the Productive Unit.

For this purpose of constructing the flowchart, a step shall be considered distinct when it can be successfully performed at a separate time from other steps. For example, in blast hole drilling positioning of the drill and the boring

© McAlear Management Consultants 2006

Operational Planning: Set Production Strategy

Updated: August 2018

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