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Organization structure modification and Definition of Operating Model

Industry: Lithium mining

Type of Engagement: project

Timeframe: 16/01/2014 - 12/12/2014

Value Range: <500k

Description of Engagement

This big Chilean tier 1 client is an enterprise that extracts brine from the Salar de Atacama to process and obtain Lithium. The company has been successfully operating for more than 30 year and were in a renovation and modernization stage. In this context, the new General Manager of the enterprise was looking to improve the operating model because the old model was designed at the time when the company was smaller with different business drivers.

A need for change was identified and the enterprise decided to review the processes of planning, execution, monitoring and improvement of Production at their two main sites: “Planta la Negra” where the brine is processed and “El Salar” where the brine is extracted. The enterprise engaged Vantaz to redesign their Operating Model which would reflect current business strategies and priorities.

Vantaz helped to identify the AS IS processes of Production with special focus on planning. With this input, Vantaz and the Enterprise’s personnel developed the TO BE processes, which were implemented in Production and Maintenance areas.

Type of Deliverable

Organization structure modification

The first analysis and improvement was made in the Organization Structure because new responsibilities and roles were required to support the new operating model.

The analysis included areas such as Production, Maintenance and Logistics. The main contents of this deliverable were:

  • Proposal of new Organization Structure Diagram
  • Update role descriptions and KPTs
  • Span of control
  • FTE analysis

When the new organization structure was approved, Vantaz corroborated the plan with detailed design and implementation/execution, supporting the process through an Organization Change Management (OCM) plan and execution.

Operating Model

The new operating model was based in the Management Cycle and all initiatives were oriented to improve processes of planning, execution, monitoring and improvement.

The model used was the following:

The main deliverables were the TO BE processes in each dimension of the model:

  1. Planning
    • Budget process
    • Forecasting Process
    • Production Program
  2. Execution
    • Integrate production with other areas such as Maintenance and Finance
  3. Monitoring
    • Identify main KPI and Balanced Score Card indicators
    • Define Value Tree
    • Decision maps
  4. Improvement
    • Define control meetings
    • Governance and roles for Continuous Improvement

Approach Taken

The project considered to work in three dimensions: Management, Operation and Organization. In addition, Vantaz included an additional analysis of the underlying technology system that the Enterprise would need to support these 3 dimensions successfully. The approach is illustrated in the following diagram:

The project was divided in 3 stages:

  1. AS IS identification.

This phase included:

  • Identification of the processes of production, maintenance and logistics
  • Build current RACI
  • People Capabilities and Organization Structure identification
  1. Design TO BE

This phase included:

  • Design of new processes
  • Design of the new structure
  • Governance
  • Preparation of the OCM strategy
  • Design of data collection process and definition of standard system for data Base purpose
  1. Implementation

This phase included

  • Implement organization structure
  • Execution of OCM plan for new processes implementation
  • Implementation of new processes
  • Standardization of data collection (from production) –Implementation of procedure of KPI
  • Adaptation of the current system in terms of tables and associated formatting with the objective of using it as a Data Base for every function point measured from production