AAOM Handbook

Set Performance Targets

Asset Integrity

The term Asset Integrity is used to refer to the health of the long life components of an asset. These are typically steel and concrete structures, services infrastructure (air, water, electricity), dams, buildings etc. Asset Integrity is measured by the percentage of potential significant threats related to the operation that are below the acceptable threshold.

Business Structure

A Business Structure is a hierarchal structure, defining the significant elements that comprise a Company, and the relationships between the performance of those elements.

Company

Is the highest level in the Business Structure. It is the level at which the Business Expectations are first defined in specific and measureable Performance Targets covering the characteristics of Effectiveness, Efficiency and Sustainability.

Dependent Variation

The component of variation in an observed result that has been caused by factors outside of the process being observed, ie variation arising because of the influences of either an input or output of the process. eg variation in flow caused by empty feed stockpiles or full output stockpiles.

Effectiveness

A performance characteristic of a process, indicating the output delivered over time. The measure of Effectiveness will vary based on the level within the Business Structure. For example; • Company - share price growth and/or dividends, • Operation - Units of product/service.

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Efficiency

A performance characteristic of a process, indicating the ratio between output delivered and resources consumed over time. The measure of Efficiency will vary based on the level within the Business Structure. For example; • Company - return on invested funds, • Operation - Units Cost of product/service.

© McAlear Management Consultants 2004

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