"How should this operation work?"
Foundational. Designs the operational architecture that aligns the organisation to its goals, through two interconnected dimensions: Operations Design and Organisation Design.
Problem
The operation was never deliberately designed. The value chain runs in silos; buffers, interfaces and structures have grown by accretion. Flow is broken, and strategy stalls before it reaches operations.
The Symptoms
- The constraint is unmanaged: the bottleneck is not where it should be by design, and moves without anyone noticing
- Local optimisation: departments hit their KPIs while the value chain underperforms
- Interfaces leak value: unclear handoffs between operational areas, and between operations and functions
- Organisation misfit: structures and accountabilities don't match the operation
management operating system
Strategies to Solve the Issue
Operations Design
How the value chain enables flow
- Map & analyse: end-to-end value chain mapping, capacity and constraint analysis; where the bottleneck should be by design
- Define the philosophy: operating philosophy and modes – Theory of Constraint application, how the system responds when the constraint shifts (Concept of Operations, Triggered Action Response Plans)
- Design for flow: standardised work, voice of the customer at each step, buffers by design, wiring between areas and functions
Organisation Design
How people run the design
- Structure & accountabilities: roles, spans of control and organisation sizing aligned to the philosophy
- Collaboration model: team and function interaction; service level agreements; decision rights and mandates
- Capability: skills and role design to operate the model, incl. flex/hybrid work, remote operations and Integrated Operating Centres
The outcome
-
Flow by Design
The value chain runs to one drumbeat, with the constraint managed deliberately. -
Aligned Decisions
Every department optimises the system, not its silo. -
Clear Interfaces
Each step delivers what its internal customer needs, consistently. -
Right-Sized Organisation
Structures and accountabilities that fit how the operation actually runs.
Value chain optimisation
Simplifying & aligning operations for measurable impact
- Mining operations executives, does this sound familiar?
- My improvement efforts aren’t translating into real bottom-line results.
- My teams are overloaded with initiatives and competing priorities.
- We operate in silos, optimising our own areas without understanding how our work supports the broader business goal.
- My operations are complex, and I don’t know where to start—short of trying to improve everything, everywhere, all at once.
- When faced with conflicting operational priorities, my team makes different decisions based on personal biases rather than a consistent approach.
- Our default response to a constraint is to throw capital at it instead of truly optimising it.
OX Solutions’ Value Chain Optimisation framework helps you simplify, focus, and deliver measurable bottom-line results.
- In this Point of View, we cover:
- OX Value Chain Optimisation framework
- Defining the Value Chain Goal and Key Level
- Subordinating at the Value Chain Level
- Optimising at the Node Level: Identify, Exploit, Subordinate, Elevate