Identification of Key Performance Areas in the Southern African Surface Mining Delivery Environment

"SynopsisThe global resources and commodities market has become highly competitive. While southern Africa’s abundance of minerals resources is still unrivalled, it has lost considerable dominance in terms of production output. The sustainability of southern Africa’s mining industry is increasingly becoming dependent on its ability to manage the performance of its operations well. A valuable tool for monitoring and managing performance is the use of key performance areas (KPAs) – which are those areas of performance that are reflected explicitly or implicitly in the vision and strategies of an organization and reflect the critical success factors of the organization. This paper is a review of key performance areas in the southern African mining delivery environment. The KPAs discussed in this paper have been identified by comparing KPAs of the several mining houses engaged in surface mining operations in southern Africa and then extracting those KPAs that are common to most of them. Although the authors support the view that each organization should develop KPAs to specifically fit its needs, the study reveals that five KPAs – safety and health, costs, product quality, fleet management, and delivery should form a default list that covers the key areas that any organization should consider when choosing KPAs. KPIs are those subsets of KPAs that we measure in order to manage KPAs.IntroductionThe global resources and commodities market has become highly competitive. While southern Africa’s abundance of minerals resources is still unrivalled, it has lost considerable dominance in terms of production output. The sustainability of southern Africa’s mining industry is increasingly becoming dependent on its ability to manage the performance of its operations well. A valuable tool for monitoring and managing performance is the use of key performance areas (KPAs), which are ‘those areas of performance that are reflected explicitly or implicitly in the vision and strategies of the organization’ (Barker, 1997). The terms KPA and KPI (key performance indicator) are often used interchangeably – whether correctly or erroneously is debatable. KPIs are ‘quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization’ (O’Neill, 2007). Each KPA probably has multiple KPIs associated with it."