Professional Documents
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PRODUCTION ANALYSIS
AND IMPROVEMENT
RELATED DOCUMENTS
OLD-WSL-MIN-STD-002 – The Way We Work
REQUIRED CAPABILITIES
4.1. A&I Coordinator
• Advanced skills and proficiency in MS Office Suite. (Excel, Word, PowerPoint, and Visio)
• Advanced Data analysis skills.
• Prior knowledge of South32 reporting systems will be advantageous.
• MS SQL Query writing and reporting and knowledge of MS SQL report performance tuning.
• Advanced skills and proficiency in report building.
• Advanced skills and proficiency in MS Office Suite. (Excel, Word, PowerPoint, and Visio)
• Knowledge of Projects and Project Management.
• Advanced Problem-Solving Skills.
• Basic understanding of Theory of Constraints (TOC) management paradigm.
• Fundamental Operations Management Understanding.
o Lean Manufacturing Principles
- Understanding Waste within Processes
- Value Stream Mapping
- Lean Six Sigma
o Efficiency and Effectiveness Metrics
A&I Specialist
• Evaluate and improve operational processes and systems.
• Analyse operational processes to optimize production.
• Analyses performance metrics and benchmarks performance across the function.
• Conduct compliance checks to verify adherence to local operating procedures.
• Update operating standards, procedures, work instructions, control systems, and ensures critical controls
are effective.
• Compile and maintain the portfolio of Improvement initiatives and works with the Production Execution,
Maintenance Analysis and Improvement and Projects Functions to execute the portfolio
• Facilitate Improvement Initiatives through the various phases from initiating to handover.
• Conducts Time and Method studies as inputs to the Capacity Calculation processes for the operation, which
feeds into various budget cycles (2YB and LoOP processes)
• Facilitate Root Cause Analysis (RCA) on major failures and facilitate of solutions to address root causes.
• Facilitate the functioning of the Management Operating Systems (MOS) in the Production Execution
Function.
CAPACITY STUDIES
The Production Analysis and Improvement Function is accountable for sourcing, analysing, and inputting all
relevant data in the Wessels Value Driver Model. This is done in collaboration with Production Planning,
Maintenance Analysis and Improvement, Maintenance Execution and Production Execution Functions.
Capacity Study updates occur annually and involve a four-step process illustrated in Figure 1 below.
• From the start of December in Year -1, the A&I team will start doing time studies on Productivity
related metrics that are not tracked with any automated systems such as SCADA or AMPLA
• To ensure the data is representative, at least 10 data points (i.e. Cycles) are targeted for each
study/area
• These metrics include but are not limited to:
o Roof Bolting Cycle Times (Various Mining Areas planned for next FY)
o Drilling Cycle Times (Various Mining Areas planned for next FY)
o Charging Times per Face
o UG Hauling Cycle Times (Various Mining Areas planned for next FY)
o UG Loading Cycle Times
o Train Loading - Wagon Shunting Times
• This Step involves reconstructing current FY H1 Performance from actual verified achievement of
different input levers are used to reconstruct the site value driver model for H1, reconciling what
proportion of tons were produced in target operating times and what was produced in overtime. This
involves the following steps:
o Data from time studies are added to historical data and compared for any material deviations
requiring further verifications.
o Productivity related data from automated systems (AMPLA) such as plant run rates are sourced
for the previous six months and compared to current FY targets.
o Actual Time Usage Information is sourced from previous six months, this includes start & park
times and utilization figures of different processes
o Dimensions and measurement related parameters are sourced from the Surveying team, which
includes but is not limited to Face Dimensions and Advance per Blast.
o Maintenance, Breakdown and unplanned Process related downtime are sourced from various
systems tracking downtime, including AMPLA, Short Interval Controls and SAP where required.
• The Reconstructed Value Driver Model for current FYH1 is discussed with the various owners of each
metric on the model.
• Achievement and Shortfalls against targets are discussed and unpacked for underlying causes and to
test validity of targets.
• Next Financial Year (FY+1) targets are discussed and plotted with relevant Stakeholders.
• Targets should incorporate a stretch of targeted improvements for specific areas in next FY. The aim
behind this is to move progressively closer to the Full Potential Number per metric. Increased Targets
should be based on actual estimations of expected benefits to be realised by committed initiatives and
not purely based on ‘gut feel’ or aspirations alone.
• Once all Stakeholders have given inputs and have been aligned, Leadership team will convene for a
sign off session where KPI’s get locked into next FY target
• This session serves as a calibration, where the entire team can challenge each part of the Value Chain
for validity of targets committed to.
• Input Assumptions are then included in the 2 Year Budget and the LoOP Process.
Ideas are added to the Wessels Initiative Pipeline (Appendix A) in the following ways:
Frontline Business
Processes: Data
Teams:
VFL, RPM Analysis by
Monthly
PTO’s, RCA’s A&I Team Idea
Meetings
Structured Generation
Deep Dive Sessions
Reviews
Idea
Suggestion
Boxes
Idea Pipeline
• Structured Deep Dives: Conducted biannually with Production Execution team per area of the value
chain. Participants include A&I Specialist, Production Execution Superintendent, Production Execution
Supervisors, Production Planning Specialist. The A&I Specialist will prepare the content for the
session, which will include detailed analysis on the performance of each key input metric for the
specific process in the value chain.
• Frontline Team: Accountability Sessions: An A&I Specialist will attend a team meeting of each
production execution team as scheduled. The Specialist will facilitate the discussion on ideas of
possible opportunities. The other critical component of these engagements is to give feedback to the
teams on existing initiatives’ progress.
• Business Processes: VFL’s, RPM’s, PTO’s and RCA’s: actions from these various processes of an
initiative nature will be added to the Idea Pipeline for prioritisation and evaluation.
• Data Analysis by A&I Team: As part of monthly reporting and analysis, opportunities arise related to
repeat failures or unexpected successes that be included in the Idea Pipeline.
• Idea generation sessions: BI team to facilitate the generation of new ideas with the potential initiatives
sponsors
• Idea Suggestion Boxes: To be updated
• Field Visits: A&I Specialists will visit their respective part of the Value Chain once a month to engage
employees executing the work and understand frustrations, ideas and issues on a 1 on 1 interaction
basis.
• All Ideas will be Captured in the Idea Pipeline. A sample of the Idea Pipeline is included in Appendix A.
• The Idea Pipeline can be accessed in the following folder: \\smmhtz-
rep01\HMM\WESSELS\REPORTS\PRODUCTION_A&I\BUSINESS IMPROVEMENT\Initiative Tracker
• On a Weekly basis in the PA&I RPM, the team will agree which ideas warrants a valuation study and
ranking.
• Valuation studies will be done on a Business Case Template, Attached in Appendix B
• Ideas will be classified in one of the following Categories:
o Safety
o Volume (should be predominantly in bottleneck areas)
o Cost
o Other
• Ideas will be ranked in the following manner:
Priority
Safety Volume Cost Other
Rating
Residual Risk Increased Expected Cost Saving
1 Rating Reduction Volume Output > >8ZARm per
> 50 50,000t per annum annum
Cost Saving Initiatives that has a
Increased Expected
Residual Risk >3ZARm per Strategic Imperative
Volume Output
2 Rating Reduction annum, without a clear numeric
>20,000t, <= 50,000t
>20, <= 50 <=8ZARm per valuation will be
per annum
annum ranked as part of the
Cost Saving Business Planning
Increased Expected
Residual Risk >1ZARm per Process or by the HOD
Volume Output
3 Rating Reduction annum, team on a ‘break-in’
>5000t, <=20,000t
>5, <=20 <=3ZARm per basis.
per annum
annum
Increased Expected Cost Saving
Residual Risk
4 Volume Output <=1ZARm per
Reduction <= 5
<=5000t per annum annum
Table 1 Idea Prioritisation Rating Matrix
Idea Approval
• All Ideas will be formally approved before they are classified as initiatives and moved into
Kainexus (approved South32 Continuous Improvement Software).
• The Classification of the Idea will determine the signatories for the approval process. All ideas
will be signed off by the PA&I Superintendent and the Plant Owner where the idea will be
implemented. This is to ensure alignment and pledge support for the initiative.
• Safety Ideas will be approved by the Safety Specialist responsible for the specific part of the
value chain.
• Volume Initiatives do not require additional sign off since the Plant Owner would have already
signed.
• Cost Initiatives will be approved by the Finance Lead.
• Ideas are signed off on the Business Case Template, Attached in Appendix B.
Approach: The high level strategic approach for Improvement work on Wessels is to follow the Theory of
Constraints (TOC) methodology. As part of the Capacity determination process articulated in Section 6, on
an annual basis the site will review previous year performance and based on assessments determine and
agree on the site Bottleneck and Constraint. Wessels will specifically follow the first three steps of the TOC
process namely:
2. Decide how to exploit the system constraint → Improvement Initiatives should be specifically
focused on the Bottleneck and the Constraint on site, and Initiatives related to these areas will
automatically be prioritized for following Financial Year. At an Operational level this involves the
use strategic buffers to mitigate the impact of up- and downstream processes on the Constraint.
3. Subordinate Everything else to the above decision → This involves not only prioritising
improvement programmes in these areas but also relates to Operational level prioritisation and
decision making. If different Processes are on breakdown at the same time for instance,
preference should be given to Constraint related downtimes. This can only be successful if the
entire site is aware of where the Constraint sits in the value chain and understands the rationale
behind why this process is prioritized operationally. This communication should take place during
Monthly Communication Sessions with the workforce on a 6-monthly basis.
Wessels does not engage in Step 4 (alleviate the system constraint) of the TOC Process unless
required as part of the site ramp up plan facilitated in the LoOP process. The Improvement
function on Site is predominantly focused on Optimizing the output of the existing constraint.
Initiative Execution
Different types of Initiatives (Cost Saving, Safety Improvement, Volume Increase) can require
different technical approaches based on the nature of the problem to be solved. At a high level
each problem will be addressed with the DMAIC steps as defined by the Six Sigma Process.
These steps will not be followed exactly to the requirements of the Six Sigma Process, but rather
used as a guide of the high-level steps a specialist will follow when addressing a business
problem/opportunity in the form of an initiative:
1. Define: to be able to clearly articulate the business problem or opportunity. Clarify objectives
and the key stakeholders involved.
2. Measure: Data collection, establish the current baseline performance/issue. For Safety
initiatives, what is the current RRR we are trying to mitigate? What costs are we spending?
What delays are we incurring that restricts volume output etc.
3. Analyse: Identify and Validate root causes of the problem or key success factors of the
opportunity.
4. Improve: Implement the proposed solution.
5. Control: Ensure sustainability of what was implemented. Updated Controlled Documents,
track performance metric for predetermined period.
As Part of this Process, the Team will make use of Various Improvement Tools, including but not
limited to:
All Active Initiatives will be tracked on Kainexus, the approved South32 Continuous Improvement Software.
The Weekly RPM’s of the Production Analysis and Improvement function will start with an overview of
Initiative Progress on Kainexus, with a discussion on the key upcoming milestones and the risks related to
all the active initiatives in the Wessels Portfolio.
Progress Reporting
A Progress Report or Flash Report will be circulated monthly. The Flash report (Appendix C) will start
with an overview of the initiative portfolio on Kainexus and include the key risks and upcoming
milestones of the Top 6 initiatives in the PA&I portfolio at the time. The sample of the initiative portfolio
overview is seen below in Figure 2. This list represents the full potential initiatives, a separate board is
still in progress for Wessels PA&I initiatives.
The Wessels Business Plan gets updated quarterly. During the quarterly business plan update session,
facilitated by the Business Improvement Manager, high value improvements implemented will be reviewed
and the sustainability of the improvement will be evaluated. If the HOD team concludes that a completed
initiative no longer delivers the value that was committed, the initiative will be re-opened and additional
actions will be put in place to ensure sustainability of results are guaranteed.
The PA&I Team is accountable for developing and circulating the following reports:
Daily
• Production Report (bonus report)
Weekly
• Load out Station performance report
• Miner RPM Pack
• Supervisor RPM Pack
• Manager RPM Pack
Monthly
• Compile the Ops Pack
• Updating Wessels live Dashboard on the Portal
• Wessels Monthly Review Pack (Rec Club)
• Drill and Blast Performance report (detailed)
• Load and Haul Performance report (detailed)
• Surface Plant and Train Loading report (detailed)
Quarterly
• Wessels Business Review pack – Anglo Board
TECHNICAL SUPPORT
The operation encounters frequent Technical Challenges pertaining to failures in different processes. The A&I
team provides technical support in the form of Investigations, Studies, RCA’s, short term interventions and
technical advice to facilitate Continuous Improvement and unlock opportunities that arise throughout the year.
As part of embedding lean principles and continuous improvement in the way we work at Wessels, lean
information centres have been established to facilitate meetings across different levels at the mine.
An integral part of Info Centres is embedding the values of the company. The Lean Guiding Principles
provide a framework for taking conceptual values and putting them into action. The 5 Guiding Principles of:
Respect for People, Teamwork, Continuous Improvement, Go Look See, Challenge the Status Quo are a
constant for all leaders in the organisation and act as a sounding board for all decisions or discussions that
arise in the Info Centre meetings. The 5 Guiding Principles are found in each Info Centre, regardless of
level.
The information centres are set up as follows (Also see Appendix 4: Lean Information Centre Structures):
Lean Bootcamps
This is an intensive training course for all staff to align thinking, level up understanding of Lean and to build
confidence in achieving the desired outcomes. Variations of the bootcamp can be run at scheduled
intervals to train all Wessels Mine staff in Lean. This will build knowledge and capability whilst fostering the
appropriate cultural behaviors needed for success. The A&I team is trained to arrange, set-up and facilitate
Lean Bootcamps.
Abbreviation Term
SCADA Supervisory Control and Data Acquisition Software
PA&I Production Analysis and Improvement
TOC Theory of Constraints
NPV Net Present Value
IRR Internal Rate of Return
Definitions
Term Definition
The South32 LEADership Model applies to everyone and sets out the
core leadership accountabilities, competencies, and behaviours.
South32 leaders need to:
South32 Leadership Model • Leverage our Operating System
• Empower our people
• Align our teams
• Deliver performance
How much an investment is worth throughout its lifetime, discounted to
NPV
today's value.
Is a method of calculating an investment's rate of return. The term
IRR internal refers to the fact that the calculation excludes external factors,
such as the risk-free rate, inflation, the cost of capital, or financial risk.
A methodical way to observe and measure an employees' work rate
Time Study using a timing device. Time studies aim to determine how long it takes a
qualified worker to complete a task at a set performance level.
The amount of time it takes to complete a specific task from start to
Cycle Time
finish.
OLD-WSL-AIO-SOP-001
ENDORSE
Position Name Date Signature
Superintendent PA&I
Mulweli Mathomba 18-05-2023
Supervisor Training pp Riccardo Popham 18-05-2023
APPROVE
Position Name Date Signature
AMENDMENTS HISTORY
AMENDMENTS HISTORY
Date Version Page Details
15-04-2019 1.0 All New Document
23-04-2021 2.0 4,6,8,9,10,11,12,14 Review
Amended responsibilities of A&I
4
specialist
10 10.1 added to explain LEAN process
Schematic diagram explaining LEAN
24-04-2023 3.0 11 meetings added as well as Lean
bootcamps
12 Definitions added
Appendix 4 with LEAN Info Centre
17
Structure added
Business Case
Initiative ID & Name Install body cameras to enhance communication and safety
Initiative Description Situation: Shunters and locomotive operators use handheld radios for communication.
Complication: Communication is not always clear enough and the shunter is not always visible to the locomotive operator.
Solution: To make use of a body camera system which will enhance communication between the locomotive operator and the shunter.
Describe the situation,
complication and solution
Full
Measure Baseline Target Notes
Potential
Physical KPIs No Direct KPI's Involved
(Volume reated KPI's Should be
constructed from the VDT on
Sheet 3)
Idea Valuation Cost Saving Cost (ZARm) Safety Severity Likelihood RRR
Current Cost per annum Current Risk Rating 30 1 30
Financial Evaluations related to Expected Cost per annum Expected Risk Rating after completion
30 0.3 9
NPV's and IRR's needs to be
Cost Saving per annum 0 Risidual Risk Reduction 21
calculated in collaboration with
the Finance Departments,
specifically related to Volume Volume (from VDT) tons Financial Evaluation PRIORITY
Improvements that involve Price Current output per annum Expected Project Cost RANKING
Protocol assumptions. Expected Output per annum NPV
Volume Increase per annum 0 IRR
2