moving towards a processmoving towards a process- centric...

Moving towards a processMoving towards a process--centric organisationcentric organisation

A Debswana Diamond Company A Debswana Diamond Company Case StudyCase StudyCase StudyCase Study

Presented at the Cape town Presented at the Cape town EA ForumEA Forum26 June 200726 June 2007

AgendaAgenda

BackgroundThe BusinessBusiness DriversProcess Maturity

The journeyBPI versus BPR

Proprietary and Confidential

BPI versus BPROn the road to BPM

Proof of ConceptObjectivesLessons learnt

ConclusionResultsSuccess factors

Appendix

BusinessBusiness

Debswana is part of the greater De

Beers group of companies

50%-50% split ownership between

Government of Botswana and De

Beers

Orapa mine


Beers

Employs over 6000 people mainly

at the Jwaneng, Orapa and

Letlhakane minesH/Q in Gaborone

Jwaneng Mine

160km

540km

RSA

Case for ChangeCase for Change

The reduction in

the Profit/Revenue

ratio

Waste-to-ore ratio increase


increase

Case for changeCase for change

The reduction

in the

Profit/Revenue

ratio

Maintenance


Maintenance costs

increase

…and more…and more

Escalating Cost of

running support services

like for example

�Mine hospitals

�Schools

�Shops


�Shops

�etc.

Process MaturityProcess Maturity

ManagedManaged

(4)(4)

ManagedManaged

(4)(4)

OptimizingOptimizing

(5)(5)

OptimizingOptimizing

(5)(5)

Predictable

process

Continuously

improving

process

In Out

In Out


InitialInitial

(1)(1)

InitialInitial

(1)(1)

RepeatableRepeatable

(2)(2)

RepeatableRepeatable

(2)(2)

DefineDefine

(3)(3)

DefineDefine

(3)(3)

Disciplined

process

Standard,

consistent

process

In Out

In Out

In Out

AgendaAgenda


The journey


The journeyOverviewBPI versus BPROn the road to BPM

Proof of Concept ObjectivesLessons Learnt


Appendix

How did we get here?How did we get here?

BPR project- Corporate

Strategy Review - Corporate

BPM Programme - Orapa

We’re hereProof-of-concept


1st Half 2005 2nd Half 20051st Half 2007

- Mineral Resource Management- Mining- Treatment- Finance- Plant Maintenance- Supply Chain Management

- Continuous improvement

- Identified opportunities to manage and reduce costs

- Identified opportunities to manage and increase revenue

- etc

2nd Half 2006

- HR Recruitment - HR, IT- Health Services- Protection Services- Business Services- etc

BPI versus BPRBPI versus BPR

Business Process Improvement

Business Process Re-engineering


Where you start With today’s process With a clean slate

Magnitude and rate of resulting changes

Incremental Radical

On The Road To On The Road To Business Business Process Process ManagementManagement

Business Process

Definition

Business Process

• As-Is process documented

• As-Is process analysed

• Improvement opportunities


Business Process

Improvement

Business Process

Management

identified

• To-Be process defined

• Improvements implemented

• Continuous improvement

• Measurements defined

• Processes monitored

• Continuity and embedding

• of process orientation in the

organisation

AgendaAgenda


The journeyOverview


OverviewBPI versus BPROn the road to BPM

Proof of Concept ObjectivesLessons Learnt


Appendix

ObjectivesObjectives

The project objectives were:

� Put forward recommendation on the HR Recruitment process

improvement.

� Establish a repeatable BPM Capability within Orapa Letlhakane &

Damtshaa Mines.


Damtshaa Mines.

� Pilot/Assess a methodology or framework that can be used for future

initiatives.

ApproachApproach

Document As-Is Process

�Process Flow

�Descriptions

�Role Accountability

�Risk & Controls

Identify Improvement Opportunities

�“Red Tape” Elimination

�Duplication

�Value-added Assessment


�Risk & Controls

�KPIs

�Value-added Assessment

�Simplification

�Standardisation

�Automation

Improvement OpportunitiesImprovement Opportunities

Process Steps


� Bottlenecks � Sources of delay � Errors being fixed instead of prevented (rework) � Role ambiguity (we didn't know who...) � Duplications � Unnecessary steps � Cycle time� Value-added vs. non-value-added steps (from the

customer's point of view) � Possibly eliminating the step(s) or doing in less

time, or trying to prevent

� Authority ambiguity (two or more people get to decide...)

� Are the decisions needed at this point?

Decisions

Pro

du

cts

Develop High Level Business Process Model

(Level 0 to Level 2)

Set Up BPM Enabling Framework

Define L3 Define KPIs

Objective 1 :Objective 1 : Put forward recommendation on the HR Recruitment process Put forward recommendation on the HR Recruitment process

improvementimprovement


Pro

du

cts

Weeks 1 2 3 4 5 6 7 8 9 10

Define L4 Activity Flow

(As-Is)

Define L4 Activity Detail

(As-Is)

Identify Process

Opportunities

Identify Process

Risks

Define L4 Activity

Flow (To-Be)

Define L4 Activity

Detail (To-Be)

Objective 2 : Objective 2 : Establish a repeatable BPM Capability within Orapa Establish a repeatable BPM Capability within Orapa Letlhakane & Damtshaa Mines.Letlhakane & Damtshaa Mines.

Capability Focus Area

Objective How the objective was met

Technology Use of BPM tools for process mapping, Process map repository, process map enquiries by a wider audience, etc

1. ARIS chosen as the tool

2. ARIS web publisher installed allowing access to models by all in Debswana employees


employees

People Change Management & Training 1. Training on ARIS provided for individuals involved.

2. Training in Business Process Improvement techniques provided for all involved in project

Process Make sure that Best Practice BPM principles are used across all initiatives in Debswana that has a process improvement component

Made sure that all process modelling that is currently taking place uses the one meta model and also ARIS is used as the standard tool.

Analyse & Recommend

‘as-is’ Mapping

Project Management

Principles

• Use as-is to run process

improvement

workshops

• Impact analysis done

• Recommendations

presented to HOD and

Exco

potential improvements

• Run workshops with

Subject Matter Experts

to define Level 4

process

maps

Objective 3 : Pilot/Assess a methodology or framework Objective 3 : Pilot/Assess a methodology or framework that can be used for future initiatives.that can be used for future initiatives.


Implement

Monitor

InitiateChange Management

• Sign-off

recommendations

• Implement as

operational change or

project depending on

impact and scope of

change

new ‘to-be’ processes

project implementation

plans

• Identify department

project lead for

Business Unit

• Define Level 2 and

Level 3 processes for

Business Unit

• Determine area to

concentrate on –

‘burning platform’

• Prepare detailed

project plan

• Sign-off by Head of

Department

project charter

project plan

• Develop process performance

metrics

• Audit process compliance process audits

Lessons Learnt

Governance

� BPM sometimes tends to be seen as an ‘event’

� Strong governance structure required for long-term sustainability

Focus

� Focus first on addressing a specific challenge or burning platform: otherwise process modelling becomes a paper exercise.


19

becomes a paper exercise.

� Aim for ‘quick wins’

Resources:

� It is important to have full-time resources involved in the project.

� In some quarters the POC was perceived as a purely IT project.

� Resources should be experienced people, with a strong understanding of their processes.

AgendaAgenda


The journeyOverview


OverviewBPI versus BPROn the road to BPM

Proof of Concept ObjectivesLessons


Appendix

ResultResult

� Based on recommendations opportunity to reduce Recruitment Cycle by more than 30%.

� Established BPM capability that is sustainable with effective knowledge transfer to internal resources.

� “Good work. I accept all your recommendations. Please prepare a


� “Good work. I accept all your recommendations. Please prepare a summary presentation for Exco at their next meeting focusing on your proposed changes to the HR processes going forward.”

General Manager

Success FactorsSuccess Factors

� Senior Management sponsorship

� Rigorous process definition using a mature modelling toolset

� Simple and practical techniques used to identify improvement opportunities

� Quick delivery – pilot project over 10 weeks


End of PresentationEnd of Presentation


End of PresentationEnd of Presentation

Orapa, Letlhakane mine L0 Orapa, Letlhakane mine L0 –– Enterprise levelEnterprise level

Level 0Manage the Mine


Win Diamonds

Support the Mine

Level 1 of ‘Support the mine’ process

Manage Projects Manage FinancesManage Physical

AssetsManage Supply Chain


Manage CommunityServices

M DavidL1

Manage HealthServices

H Van ZylL1

Manage BusinessServices

M DavidL1

M MajahaL1

L ArmstrongL1

N PollardL1

M DavidL1

Manage InformationTechnology

M ThekisoL1

Manage Safety, HealthAnd Environment

M MalemaL1

Manage HumanResources

M MpugwaL1

Level 2 of the ‘Manage Human resources’ process

Plan HumanResources

L2

Manage Labour

L2

Administer HumanResources

L2

Recruit HumanResources

L2

Develop HumanResources

L2


Manage HumanResouces

Performance

L2

Manage EmployeeRelations

L2

Manage Compensation

L2

Manage Time AndAttendance

L2

L2 L2 L2 L2 L2

Manage HumanResources Wellness

Level 3 of the ‘Recruit Human Resources ‘

Identify RecruitmentNeed

L3

Source Candidates

L3

Select Candidates

L3

Offer Employment

L3

Place Candidate

L3

Follow-up Placement

L3

L2Develop Human

ResourcesL2 Manage Real Estate L2 Manage Labour

Manage CompanyCommunication

Identify RecruitmentNeed

L3

Source Candidates

L3

Select Candidates

L3

Offer Employment

L3

Place Candidate

L3

Follow-up Placement

L3

L2Develop Human

ResourcesL2 Manage Real Estate L2 Manage Labour

Manage CompanyCommunication


L1 Manage Health Services

L2 Plan Access Control


Manage Costs

L2

L4

L1 Manage Health Services



Manage Costs

L2

L4

Typical Sub Process (L4) Deliverables Typical Sub Process (L4) Deliverables

DMSConcentrate

Produced

MonitorProcessIntegrity

L4

ProcessProcessing

Verified

SamplesDispatched toPreparation

Facility (MaDA)

PerformSample

Preparation(MaDA)

L4

DispatchPrepared Samplesto ConcentrationFacility (MaDA)

L4

PerformConcentration

(DMS)L4

AcquireAdvancedExploration

Samples and Data

L3 Description

Type

Who is RACI

Supporting System

Frequency

Physical Location

Inputs

Outputs

for each activity we have to capture the following information


Audit DMSTailings

L4

Audit X-RayTailings

L4Perform

Concentration(Final Recovery)

L4

MacrodiamondsRecovered

MacrodiamondsResults

Produced

AnalyseMacrodiamonds

L4

Produced

Dispatch DMSConcentrate toFinal Recovery

Facility

L4

UpdateDiamondRegister

L4

SuperconcentrateProduced

PerformSorting (MaDA)

L4

StoreX-Ray

TailingsL4

StoreDMS

TailingsL4

DMSTailingsStored

X-RayTailingsStored

Verified

AnalyseAdvanced

ExplorationSamples and Data

L3

Outputs

References

Policies & Procedures

Risks & Controls

Execution batch, manual, automated

KPIs

Location

Average Waiting Time

Average Processing Time

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