A mining operation is a set of activities that are interconnected in a mining value chain drill, blast, load, haul, crush, process, and sell, for example, with supporting. Jan 22, 2018 vblog value driver trees posted by mec mining on january 22, 2018 principal mining engineer geoff watsons second vblog on value driver trees for underground coal. Xeras enterprise cost driver tree explore the value of being able to visualise the costvalue driver tree using the drill down feature for each and every value within the financial model. Analysis of key value drivers for major mining companies. Identify latent capacity by using value driver trees to verify performance drivers against operational constraints. Integrating into your mining operation resolution systems. Value driver analysis is an important foundation for strategic. However, other interconnected factors, including stakeholder action and market dynamics, are. Value driver trees are tools used to split out value based metrics such as eva and roi into submetrics in order to determine the source of value being added. This vblog looks into value driver trees for underground coal. The cynics amongst us would argue that value has been and should always be the primary focus of a mining organisation.
Mar 17, 2017 the modern mining business aspires to be value optimised to minimise its cost base and maximise its productivity, but how many businesses really know which levers and drivers to pull and push. Business resource library first principles consulting. What i like particularly about the value driver tree is that it simplifies the representation of what could otherwise be complex information into a simple and dynamic graphical representation. Vdts are basically a picture of the gears or value drivers that power a business. In doing so, we have found that a number of fundamental questions are raised which we will start to address in this executive insights series. Explore the value of being able to visualise the costvalue driver tree using the drill down feature for each and every value within the financial model. Maxmine enables very specific coaching to operators and supervisors based on their personal performance. Event calendar every year, pwc russia holds more than 100 events. Know your vdt model for an underground coal operation.
As far as i know there is no addin from microsoft for creating value driver tree. Example of a mining value driver tree vdt in high resolution improving consistency of delivery at mtrawdon operation boon, franklin story board. Pw c value driver modelling feb 2009 email final 1. For a general explanation of mining model content for all model types. Consulting has worked with a wide variety of companies to help them manage key value drivers. Total customer service expense, on the lefthand side of the tree, was an expenseline item in the income statement of several business units. Example of a mining value driver tree vdt in high resolution you will get some inspiration on how to structure your vdt. Creating a driver tree in centric scio centric mining systems. Creating a driver tree in centric scio centric mining. A value driver tree assessment of a mining operation quickly uncovers which drivers, including people and equipmentrelated ones, can have the biggest impact on operational improvement through the front line. Value driver tree template by exmckinsey consultants 1.
About a century ago, du pont created a metric concept called the value driver tree, which splits value based metrics such as eva and roi into their submetrics. Thus there is feedback built into the zachman framework that requires that each model is subject. For example, a value driver based tree model identified that the mining capacity of a site needed to double from 6 to 12 excavators to maximise output, whereas an activity based scheduling. However, other interconnected factors, including stakeholder action and market dynamics, are also at work see page 15. Whilst this allows miners to gain a solid understanding of mine. This value tree for evaluating operating alternatives at a hydroelectric facility shows higherorder objectives at the left of the hierarchy linked ultimately to performance. My previous posts have discussed the basics about value driver modelling vdm and how to build a well designed vdmbased model. Putting a value on maintenance and reliability improvement. In the new component screen, select driver tree from the left menu, select the driver tree icon, and then select the icon of the kpi style to be used. Of course, the value driver tree needs to be tailored to the improvement initiative and the model below will not be applicable in all circumstances.
Planning for value in the mining value chain saimm. Mar 20, 2014 value driver tree templates in powerpoint 1. Improving consistency of delivery at mtrawdon operation boon, franklin. Of these three drivers revenue is the strongest value driver. Value driver trees like this one are usually linked into roic trees, which are in turn linked into multiperiod cash flows and valuation of the business unit.
Vblog value driver trees posted by mec mining on january 22, 2018 principal mining engineer geoff watsons second vblog on value driver trees for underground coal. At the peak of the mining boom in australia it was vogue to use value driver trees to analyse your mining operations and to answer questions. The purpose of this post is to explore a practical implementation of vdm through a value calculator. Value, not cost, became a key driver for most mining companies.
E ndtoend mining value driver tree vdt example in high resolution pdf you will get some inspiration on how to structure your vdt vdts are useful to. Creating a value driver tree vdt with sap analytics cloud. Using bigpicture software, first principles consulting. It was also noted that the two debt metrics, gearing ratio and net debt to ebitda, only correlated with ev. I remember in 1992 being handed this book the goal by eliayhu goldratt and being surprised on a number of fronts. Innovative tool to assess the value of new technologies austmine. The value driver tree for financial institutions is based on the assumption that financing is part of operations. Value driver tree template by exmckinsey consultants. Identify the key performance indicators kpis so you know what to measure remember, if you measure it, you manage it. Value driver tree extension for sap businessobjects design. The value driver matrix see figure 3 illustrates a framework for prioritizing value drivers. Net debt to ebitda only drove company value in times of declining commodity prices. Using regression trees for forecasting doubleseasonal time series with trend in r written on 20170822 after blogging break caused by writing research papers, i managed to secure time to write something new about time series forecasting. Value driver tree financials about a century ago, du pont created a metric concept called the value driver tree, which splits value based metrics such as eva and roi into their submetrics.
June 22, 2015 december 12, 2019 reuben kearney at the peak of the mining boom in australia it was vogue to use value driver trees to analyse your mining operations and to answer questions like should i buy more trucks or am i. The value driver tree traces its origin to 1920s, when dupont used a visual model to define return on investment roi as a function of profitability, asset turnover and financial leverage all of which were broken down further. Identify the bottlenecks in your operation provided your vdt is mathematically based. Mining operational excellence framework retaining cost leadership ensuring investment. The southern african institute of mining and metallurgy. The final approach discussed here relates to determining the value of an improvement program targeting risk. Value drivers include measures of growth, margins, capital efficiency, and leverage. Mining companies looking at mergers as the industry prepares for the. Identify latent capacity by using value driver trees to verify. The value driver tree enables line of business lob leaders align faster with executive vision by linking business kpis and its operational drivers thereby allowing businesses to model, plan. The cynics amongst us would argue that value has been and should always be the primary focus. You may use your favorite search engine and try to search for the addins to create driver tree in excel. The value driver engine is the powerhouse of the tool that combines the input information with the value driver model to produce valuable outputs. Here we have an example of the basic building block of a vdt.
The 6th international platinum conference, platinummetal for the future, the southern african institute of mining and metallurgy, 2014. Gordon dunbar process improvement specialist consultant. Value trees a new approach for process visualisation. June 22, 2015 december 12, 2019 reuben kearney at the peak of the mining boom in australia it was vogue to use value driver trees to analyse your mining operations and to answer questions like should i buy more trucks or am i better off with more excavators. Proceedings of the 6th international platinum conference, platinummetal for the future, the southern african institute of mining and metallurgy, pp 143152. Industry leaders in mining industry software, consulting, and training. We spent ages working with the value driver tree module semcpmvdt on a large project for a large australian mining company. Analysis of key value drivers for major mining companies for the period 20062015. Performance improvement by reducing eight types of waste. The style of kpi that is chosen will depend on which kpi options will be available, either single value or. Node score the node score represents slightly different information at each level of the tree. Know your vdt model for an underground coal operation mec. Mining companies have returned more money to shareholders.
Gearing ratio only drove company value in times of declining commodity prices. Presentation to brisbane mining club, 17 october 2012 we are right at the bottom of the cost curve, in the lowest quartile. May 26, 2017 value driver tree template by exmckinsey consultants 1. A commitment to leading practice sustainable development is critical for a mining company to gain and maintain its social licence to operate in the community. Theory of constraints was a real eye opener for me.
Mine closure and completion v foreword the australian mining industry is well aligned to the global pursuit of sustainable development. However, before i provide some more detail on a specific example, i would like to explain what a vdt is and how it is used. Based on light historical data and assumptions, mining companies utilise. Pwc canada was engaged by the lands and minerals sector of natural resources canada to conduct a study on canadas minerals and metals sector in support of the. Value trees a value tree, like an objectives hierarchy, shows how higher order objectives are linked to subobjectives and eventually to performance measures or attributes. The whole of business value driver tree modelling wobvdt. The sum of cases in the leaf nodes necessarily equals the. Value driver tree i have been involved in the development of a number of value driver trees vdt related to the mining sector. Our value driver tree is the first and only set of components for sap analytics design studio and sap lumira, enabling the development of value driver trees for budgeting, forecasting and planning based on different scenarios in order to support decision making in your organization.
Commodity prices, revenue and ebitda multiple drove company value. Figure 2 provides an example of a value driver tree for a miningtruck fleet. Mining model content for decision tree models microsoft docs. Value driver modelling with archimedes facx for optimising. Recording a macro to import a plain text file in microsoft excel 2016. Creating a value driver model from scratch can be a timeconsuming process and, thus, expensive at the same time, however, except for significant differences between opencut and underground mining, processes using in mining operations are relatively standardised. This is a great way of getting the message across to a wide range of employees who work in their respective functions. Example of an endtoend value driver tree in a high resolution pdf. Value creation is the goal of all companies, but corporate value creation. Value driver trees are tools used to split out valuebased metrics such as eva and roi into submetrics in order to determine the source of value being added. First principles consulting fpc, located in australia, uses bigpicture to create value driver trees for mining clients. Rca issue tree valuehain c analysis operating philosophy. If you are looking for graphical presentation in hierarchy manner then you may use smart art graphics in excel.
Modelling an activity using a value driver tree model. Xeras enterprise cost driver tree explore the value of being able to visualise the cost value driver tree using the drill down feature for each and every value within the financial model. Hello, we spent ages working with the value driver tree module semcpmvdt on a large project for a large australian mining company. Explore the value of being able to visualise the costvalue driver tree using the drill down. About a century ago, du pont created a metric concept called the value driver tree, which splits value based metrics such as eva and roi into their submetrics to show the source of the value added. Jan 17, 2018 mining value driver tree lumiere analytics. Using regression trees for forecasting doubleseasonal time. The southern african institute of mining and metallurgy platinum 2012 636 modelling an activity using a value driver tree model we start off by modelling a basic unit of production. Jun 21, 2018 the value driver tree vdt is amore advanced feature that leverages the interdependancies of metrics onto a driver for final output. Mining model content for decision tree models analysis services data mining 05082018.
For a list of the value types that are used in regression trees, see mining model content for linear regression models analysis services data mining. This video introduces the idea of translating converting a value driver tree vdt into an excel model. We found it problematic with many issues around the simulation function and value field you indicate. Todays mining companies continue to face a vast range of complex financial reporting requirements, and everincreasing scrutiny by auditors and stakeholders. The sum of these constraint sets establishes the governing constraint set. Eight potential value drivers were analyzed for four diversified mining companies. Jun 24, 2016 my previous posts have discussed the basics about value driver modelling vdm and how to build a well designed vdmbased model. Value drive trees vdts are the main type of diagram used as part of vdm.
Presentation to brisbane mining club, 17 october 2012. Example of a mining value driver tree vdt in high resolution. The task is to identify variables that reside in quadrant iv and manage the resources directed at influencing variables in quadrants i through iii. Connecting corporate and societal value creation 7. Value driver trees of management and operational processes. Value driver tree the value driver tree is a physical representation of interdependancies in measures that is used to generate a simulated effect of changing an underlying measure onto it parent. Visual bi solutions acquires dolphin dynamics labs value. Our experts are always glad to share their experience and expertise in strategy implementation, operational effectiveness, human management, tax optimisation and introduction of new technology. A value driver tree approach helps prioritise improvement efforts on the highest impact levers. May 27, 2015 to add a secondlevel kpi to the driver tree, select the add kpi link, choose the type of kpi component single value or compare values, and then select the kpi value. For each split in the tree, the support value is the count of cases that were grouped into that node of the tree.
The final approach discussed here relates to determining the value of. The modern mining business aspires to be value optimised to minimise its cost base and maximise its productivity, but how many businesses really know which levers and drivers to pull and push. Maxmine uses cloud processing power to analyse and visualise the data the system collects robotically with littletono delay, reporting easytounderstand, actionable improvement priorities to the enduser in realtime via a clear, easy to navigate interface. The model helped the firm understand the impact of changes to various key parameters on the overall outcome. Pwc russia value driver modelling can help a mining companys management to address a whole range of important issues 2 recently, mining companies costs have gone up significantly and many companies in the. Jul 25, 2016 for example, a value driver based tree model identified that the mining capacity of a site needed to double from 6 to 12 excavators to maximise output, whereas an activity based scheduling.
Ive seen the introduction of value calculators transform the way organisations think, plan, track and report on the benefits of their projects. Using bigpicture software, first principles consulting improves. Value driver tree templates in powerpoint aurelien domont, mba. Analysis of key value drivers for major mining companies for. The value driver model is the framework of causal relationships and correlations that determine how organisations actually function. Example of an endtoend value driver tree in a high.
1351 527 837 519 1392 1374 933 1173 609 1290 113 22 1172 1451 818 908 1487 1487 486 390 1083 756 58 1192 1566 211 1081 245 347 79 1441 1022 700 1402 730 501 20 50 1269