Value driver tree mining

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. 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 trees of management and operational processes. Total customer service expense, on the lefthand side of the tree, was an expenseline item in the income statement of several business units. The final approach discussed here relates to determining the value of an improvement program targeting risk. 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. Rca issue tree valuehain c analysis operating philosophy. Identify latent capacity by using value driver trees to verify. Value driver modelling with archimedes facx for optimising mining company operations. 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.

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. If you are looking for graphical presentation in hierarchy manner then you may use smart art graphics in excel. The sum of these constraint sets establishes the governing constraint set. Identify the bottlenecks in your operation provided your vdt is mathematically based. 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. Theory of constraints was a real eye opener for me. Industry leaders in mining industry software, consulting, and training. Value, not cost, became a key driver for most mining companies. 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. Jan 17, 2018 mining value driver tree lumiere analytics. Todays mining companies continue to face a vast range of complex financial reporting requirements, and everincreasing scrutiny by auditors and stakeholders.

Gearing ratio only drove company value in times of declining commodity prices. This vblog looks into value driver trees for underground coal. Visual bi solutions acquires dolphin dynamics labs value. 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. Figure 2 provides an example of a value driver tree for a miningtruck fleet. This is a great way of getting the message across to a wide range of employees who work in their respective functions. Innovative tool to assess the value of new technologies austmine. It was also noted that the two debt metrics, gearing ratio and net debt to ebitda, only correlated with ev. Analysis of key value drivers for major mining companies for. Eight potential value drivers were analyzed for four diversified mining companies. Using regression trees for forecasting doubleseasonal time. Lane and wylie 2014 also developed a value driver tree model that identifies key value drivers along the mining value chain and demonstrated that in order to create value, key performance indicators kpis need to be aligned across different functional disciplines in a mining production system. 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.

Mine closure and completion v foreword the australian mining industry is well aligned to the global pursuit of sustainable development. 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. 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. Using bigpicture software, first principles consulting.

The 6th international platinum conference, platinummetal for the future, the southern african institute of mining and metallurgy, 2014. Mining companies have returned more money to shareholders. 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 trees a new approach for process visualisation. 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. Value driver modelling with archimedes facx for optimising. Know your vdt model for an underground coal operation mec. The value driver matrix see figure 3 illustrates a framework for prioritizing value drivers. The model helped the firm understand the impact of changes to various key parameters on the overall outcome. 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. First principles consulting fpc, located in australia, uses bigpicture to create value driver trees for mining clients.

Value driver tree template by exmckinsey consultants. 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. Putting a value on maintenance and reliability improvement. Value driver tree extension for sap businessobjects design. Gordon dunbar process improvement specialist consultant. Creating a driver tree in centric scio centric mining. You may use your favorite search engine and try to search for the addins to create driver tree in excel. Identify the key performance indicators kpis so you know what to measure remember, if you measure it, you manage it. Here we have an example of the basic building block of a vdt. 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. Proceedings of the 6th international platinum conference, platinummetal for the future, the southern african institute of mining and metallurgy, pp 143152. The cynics amongst us would argue that value has been and should always be the primary focus of a mining organisation.

Modelling an activity using a value driver tree model. As far as i know there is no addin from microsoft for creating value driver tree. Creating a driver tree in centric scio centric mining systems. The style of kpi that is chosen will depend on which kpi options will be available, either single value or. 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.

Commodity prices, revenue and ebitda multiple drove company value. 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. However, other interconnected factors, including stakeholder action and market dynamics, are. Mining model content for decision tree models microsoft docs. Creating a value driver tree vdt with sap analytics cloud. 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. Net debt to ebitda only drove company value in times of declining commodity prices. 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. Consulting has worked with a wide variety of companies to help them manage key value drivers. The whole of business value driver tree modelling wobvdt. The southern african institute of mining and metallurgy.

Of these three drivers revenue is the strongest value driver. 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. Recording a macro to import a plain text file in microsoft excel 2016. Hello, we spent ages working with the value driver tree module semcpmvdt on a large project for a large australian mining company. Presentation to brisbane mining club, 17 october 2012 we are right at the bottom of the cost curve, in the lowest quartile. 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.

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. The value driver engine is the powerhouse of the tool that combines the input information with the value driver model to produce valuable outputs. Explore the value of being able to visualise the costvalue driver tree using the drill down. Mining model content for decision tree models analysis services data mining 05082018. Example of a mining value driver tree vdt in high resolution. Thus there is feedback built into the zachman framework that requires that each model is subject. 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. 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.

However, other interconnected factors, including stakeholder action and market dynamics, are also at work see page 15. Example of an endtoend value driver tree in a high. Jun 21, 2018 the value driver tree vdt is amore advanced feature that leverages the interdependancies of metrics onto a driver for final output. The task is to identify variables that reside in quadrant iv and manage the resources directed at influencing variables in quadrants i through iii. We found it problematic with many issues around the simulation function and value field you indicate. Mar 20, 2014 value driver tree templates in powerpoint 1. This video introduces the idea of translating converting a value driver tree vdt into an excel model. Pw c value driver modelling feb 2009 email final 1.

Analysis of key value drivers for major mining companies for the period 20062015. 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. The sum of cases in the leaf nodes necessarily equals the. Value driver tree templates in powerpoint aurelien domont, mba. May 26, 2017 value driver tree template by exmckinsey consultants 1.

Mining companies looking at mergers as the industry prepares for the. 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. 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. 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. The purpose of this post is to explore a practical implementation of vdm through a value calculator.

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. Planning for value in the mining value chain saimm. Example of a mining value driver tree vdt in high resolution improving consistency of delivery at mtrawdon operation boon, franklin story board. For each split in the tree, the support value is the count of cases that were grouped into that node of the tree. Integrating into your mining operation resolution systems. We spent ages working with the value driver tree module semcpmvdt on a large project for a large australian mining company. This value tree for evaluating operating alternatives at a hydroelectric facility shows higherorder objectives at the left of the hierarchy linked ultimately to performance. Improving consistency of delivery at mtrawdon operation boon, franklin. Maxmine enables very specific coaching to operators and supervisors based on their personal performance. Using bigpicture software, first principles consulting improves.

Vdts are basically a picture of the gears or value drivers that power a business. Ive seen the introduction of value calculators transform the way organisations think, plan, track and report on the benefits of their projects. 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. 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. Based on light historical data and assumptions, mining companies utilise.

My previous posts have discussed the basics about value driver modelling vdm and how to build a well designed vdmbased model. 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. Example of an endtoend value driver tree in a high resolution pdf. For a general explanation of mining model content for all model types. Event calendar every year, pwc russia holds more than 100 events. Business resource library first principles consulting. Know your vdt model for an underground coal operation. The value driver model is the framework of causal relationships and correlations that determine how organisations actually function. Value drivers include measures of growth, margins, capital efficiency, and leverage. Mining operational excellence framework retaining cost leadership ensuring investment. I remember in 1992 being handed this book the goal by eliayhu goldratt and being surprised on a number of fronts. 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.

Whilst this allows miners to gain a solid understanding of mine. 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. 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. Analysis of key value drivers for major mining companies.

Example of a mining value driver tree vdt in high resolution you will get some inspiration on how to structure your vdt. 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. Presentation to brisbane mining club, 17 october 2012. 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. Connecting corporate and societal value creation 7. Node score the node score represents slightly different information at each level of the tree. The value driver tree for financial institutions is based on the assumption that financing is part of operations. 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.