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
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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
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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
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increase
Case for changeCase for change
The reduction
in the
Profit/Revenue
ratio
Maintenance
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Maintenance costs
increase
…and more…and more
Escalating Cost of
running support services
like for example
�Mine hospitals
�Schools
�Shops
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�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
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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
BackgroundThe BusinessBusiness DriversProcess Maturity
The journey
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The journeyOverviewBPI versus BPROn the road to BPM
Proof of Concept ObjectivesLessons Learnt
ConclusionResultsSuccess factors
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
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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
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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
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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
BackgroundThe BusinessBusiness DriversProcess Maturity
The journeyOverview
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OverviewBPI versus BPROn the road to BPM
Proof of Concept ObjectivesLessons Learnt
ConclusionResultsSuccess factors
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.
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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
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�Risk & Controls
�KPIs
�Value-added Assessment
�Simplification
�Standardisation
�Automation
Improvement OpportunitiesImprovement Opportunities
Process Steps
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� 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
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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
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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.
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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.
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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
BackgroundThe BusinessBusiness DriversProcess Maturity
The journeyOverview
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OverviewBPI versus BPROn the road to BPM
Proof of Concept ObjectivesLessons
ConclusionResultsSuccess factors
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
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� “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
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End of PresentationEnd of Presentation
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End of PresentationEnd of Presentation
Orapa, Letlhakane mine L0 Orapa, Letlhakane mine L0 –– Enterprise levelEnterprise level
Level 0Manage the Mine
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Win Diamonds
Support the Mine
Level 1 of ‘Support the mine’ process
Manage Projects Manage FinancesManage Physical
AssetsManage Supply Chain
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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
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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
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L1 Manage Health Services
L2 Plan Access Control
L2 Plan Access Control
Manage Costs
L2
L4
L1 Manage Health Services
L2 Plan Access Control
L2 Plan Access Control
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
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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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