The style of kpi that is chosen will depend on which kpi options will be available, either single value or. 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. Connecting corporate and societal value creation 7. Eight potential value drivers were analyzed for four diversified mining companies. We spent ages working with the value driver tree module semcpmvdt on a large project for a large australian mining company. 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. You may use your favorite search engine and try to search for the addins to create driver tree in excel. Event calendar every year, pwc russia holds more than 100 events. Value drive trees vdts are the main type of diagram used as part of vdm. 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. Value, not cost, became a key driver for most mining companies. Value driver tree templates in powerpoint aurelien domont, mba. Example of a mining value driver tree vdt in high resolution you will get some inspiration on how to structure your vdt.
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. Improving consistency of delivery at mtrawdon operation boon, franklin. 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. 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. 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.
Value trees a new approach for process visualisation. 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. Visual bi solutions acquires dolphin dynamics labs value. Using bigpicture software, first principles consulting improves. 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. 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, before i provide some more detail on a specific example, i would like to explain what a vdt is and how it is used. Creating a driver tree in centric scio centric mining systems. The final approach discussed here relates to determining the value of.
Value driver tree extension for sap businessobjects design. Pw c value driver modelling feb 2009 email final 1. Value driver trees of management and operational processes. 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. Mar 20, 2014 value driver tree templates in powerpoint 1. As far as i know there is no addin from microsoft for creating value driver tree. Know your vdt model for an underground coal operation mec. However, other interconnected factors, including stakeholder action and market dynamics, are. 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.
Using bigpicture software, first principles consulting. 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. Value driver analysis is an important foundation for strategic. Jan 17, 2018 mining value driver tree lumiere analytics. Thus there is feedback built into the zachman framework that requires that each model is subject. Mining companies have returned more money to shareholders. Gordon dunbar process improvement specialist consultant. Todays mining companies continue to face a vast range of complex financial reporting requirements, and everincreasing scrutiny by auditors and stakeholders. Presentation to brisbane mining club, 17 october 2012.
Based on light historical data and assumptions, mining companies utilise. Performance improvement by reducing eight types of waste. Maxmine enables very specific coaching to operators and supervisors based on their personal performance. 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. Business resource library first principles consulting. 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. Net debt to ebitda only drove company value in times of declining commodity prices. Putting a value on maintenance and reliability improvement. Example of an endtoend value driver tree in a high resolution pdf. Planning for value in the mining value chain saimm. The value driver tree for financial institutions is based on the assumption that financing is part of operations. The task is to identify variables that reside in quadrant iv and manage the resources directed at influencing variables in quadrants i through iii.
Integrating into your mining operation resolution systems. Identify the key performance indicators kpis so you know what to measure remember, if you measure it, you manage it. 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. 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. 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. 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. Figure 2 provides an example of a value driver tree for a miningtruck fleet. Recording a macro to import a plain text file in microsoft excel 2016.
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. The value driver matrix see figure 3 illustrates a framework for prioritizing value drivers. 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. 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. Example of a mining value driver tree vdt in high resolution improving consistency of delivery at mtrawdon operation boon, franklin story board. If you are looking for graphical presentation in hierarchy manner then you may use smart art graphics in excel. Innovative tool to assess the value of new technologies austmine. Jun 24, 2016 my previous posts have discussed the basics about value driver modelling vdm and how to build a well designed vdmbased model. Analysis of key value drivers for major mining companies.
The purpose of this post is to explore a practical implementation of vdm through a value calculator. It was also noted that the two debt metrics, gearing ratio and net debt to ebitda, only correlated with ev. My previous posts have discussed the basics about value driver modelling vdm and how to build a well designed vdmbased model. The 6th international platinum conference, platinummetal for the future, the southern african institute of mining and metallurgy, 2014. 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. The value driver engine is the powerhouse of the tool that combines the input information with the value driver model to produce valuable outputs. 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.
Mining model content for decision tree models microsoft docs. Identify latent capacity by using value driver trees to verify. Consulting has worked with a wide variety of companies to help them manage key value drivers. Gearing ratio only drove company value in times of declining commodity prices. Know your vdt model for an underground coal operation. 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. 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.
Identify the bottlenecks in your operation provided your vdt is mathematically based. Value creation is the goal of all companies, but corporate value creation. Identify latent capacity by using value driver trees to verify performance drivers against operational constraints. Mine closure and completion v foreword the australian mining industry is well aligned to the global pursuit of sustainable development. The southern african institute of mining and metallurgy. This vblog looks into value driver trees for underground coal. Creating a value driver tree vdt with sap analytics cloud. Using regression trees for forecasting doubleseasonal time. 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.
Hello, we spent ages working with the value driver tree module semcpmvdt on a large project for a large australian mining company. The cynics amongst us would argue that value has been and should always be the primary focus. For each split in the tree, the support value is the count of cases that were grouped into that node of the tree. 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. Creating a driver tree in centric scio centric mining. 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 final approach discussed here relates to determining the value of an improvement program targeting risk. Explore the value of being able to visualise the costvalue driver tree using the drill down. Vdts are basically a picture of the gears or value drivers that power a business. Value driver tree i have been involved in the development of a number of value driver trees vdt related to the mining sector. Value drivers include measures of growth, margins, capital efficiency, and leverage. 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. 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. Industry leaders in mining industry software, consulting, and training.
Total customer service expense, on the lefthand side of the tree, was an expenseline item in the income statement of several business units. Mining operational excellence framework retaining cost leadership ensuring investment. Whilst this allows miners to gain a solid understanding of mine. Commodity prices, revenue and ebitda multiple drove company value. 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. Ive seen the introduction of value calculators transform the way organisations think, plan, track and report on the benefits of their projects. 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. 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. For a general explanation of mining model content for all model types.
This value tree for evaluating operating alternatives at a hydroelectric facility shows higherorder objectives at the left of the hierarchy linked ultimately to performance. Node score the node score represents slightly different information at each level of the tree. Here we have an example of the basic building block of a vdt. Value driver tree template by exmckinsey consultants. Value driver modelling with archimedes facx for optimising. Example of an endtoend value driver tree in a high. Presentation to brisbane mining club, 17 october 2012 we are right at the bottom of the cost curve, in the lowest quartile. The sum of these constraint sets establishes the governing constraint set.
May 26, 2017 value driver tree template by exmckinsey consultants 1. A value driver tree approach helps prioritise improvement efforts on the highest impact levers. The model helped the firm understand the impact of changes to various key parameters on the overall outcome. Modelling an activity using a value driver tree model.
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. 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. Analysis of key value drivers for major mining companies for. Mining companies looking at mergers as the industry prepares for the.
We found it problematic with many issues around the simulation function and value field you indicate. 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. 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. Of these three drivers revenue is the strongest value driver. 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. This video introduces the idea of translating converting a value driver tree vdt into an excel model. Theory of constraints was a real eye opener for me. Value driver tree template by exmckinsey consultants 1. Analysis of key value drivers for major mining companies for the period 20062015. The sum of cases in the leaf nodes necessarily equals the.
Mining model content for decision tree models analysis services data mining 05082018. I remember in 1992 being handed this book the goal by eliayhu goldratt and being surprised on a number of fronts. The value driver model is the framework of causal relationships and correlations that determine how organisations actually function. The whole of business value driver tree modelling wobvdt. This is a great way of getting the message across to a wide range of employees who work in their respective functions. 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. 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. Value driver modelling with archimedes facx for optimising mining company operations. However, other interconnected factors, including stakeholder action and market dynamics, are also at work see page 15.