Process Approach in a Mining Company: LW Bogdanka S.A. Case Study

Abstract

This article concerns the management of the Polish mining company Lubelski Węgiel (LW) Bogdanka S.A. The main aim of this paper was to describe the whole process of implementing a process approach to management in one of the most important mining companies in Poland. The objective of the research presented was the incorporation of the process approach in LW Bogdanka S.A. to enhance its management and to improve the effectiveness of its mining process. This paper uses a case study method and presents a practical incorporation of the process approach and its results. The first phase of the proposed solution included building a map of business processes. Then, the research consisted of an analysis of existing processes; the introduction of new solutions, mainly in the field of infrastructure and IT systems; and changing the awareness of key process owners. The motivation for applying this approach was to achieve greater efficiency and continuous improvement in LW Bogdanka S.A. The main results and achievements were not merely limited to the development of a map of processes and subprocesses, but also led to an improvement in organizational structure, changes in approach to company management, a diagnosis of problems in the most important company departments, and the proposal of solutions to them.

1. Introduction

Modern organizations face a constantly changing business environment that requires adaptation and the improvement of internal processes. In this context, effective process management becomes a key factor in determining organizational success. First, the company should identify the processes that take place in it. Then, it also needs to define the activities performed within each process. Moreover, each enterprise has a system of interrelated processes, each of which influences the achievement of the company’s goals, mission, and vision. Companies should not focus on the implementation of separate local, often inconsistent goals, but rather strive for a holistic approach so that the chosen enterprise strategy is consistent in all areas of its activity.

Process management enables enterprises to effectively use resources, optimize activities, and adapt to changing market conditions. By defining, analyzing, and continuously improving processes, organizations can achieve a number of benefits [1]. Process management allows for one to understand and improve all the steps needed to deliver a product or service to a customer. By identifying key processes and modifying them to eliminate unnecessary activities or reduce delays, companies can increase their operational efficiency and shorten implementation times. In addition, process management enables better control over the quality of products and services. By monitoring key process performance indicators and implementing appropriate corrective actions, companies can ensure that their products meet customer expectations and are competitive in the market. Then, process management promotes innovation and adaptation. Enterprises that effectively manage their processes are more open to changes and new ideas. By continuously improving processes and using methodologies such as Lean or Six Sigma, organizations can respond faster to changing market needs and stay ahead of the competition [2]. Finally, process management helps to increase employee engagement. By clearly defining processes and the role of each employee in their implementation, companies can motivate their staff to work toward a common goal and support continuous improvement.

Since process management can be an essential element of the business strategy of an organization striving to achieve success in today’s demanding business environment, Polish mining companies should also take steps towards implementation of this approach. Polish mining is struggling with a number of problems, including high production costs [3], high competition on the global market, the need to diversify production [4], environmental [5] and social problems, as well as complicated procedures in many fields, including public procurement procedures [6]. An important issue also is the closure of mines and the withdrawal from coal exploitation [7]. Therefore, it is necessary to take actions that will help improve the effective management of mining and geological work [8,9,10,11], the organization of underground work [12], as well as decision-making at the strategic, tactical, and operational levels [13,14]. What is more, difficult, harmful, and dangerous work conditions pose a need for solutions in the field of underground ergonomics and work safety [15,16]. New popular approaches to management using modern tolls and methods are justified for use in mining companies [17,18,19].

What is more, mining companies, extracting hard coal and lignite, face many challenges. The mining industry, especially in Poland, has been struggling for many years with numerous problems related to the mining process, profitability, infrastructure, and human resources, including strikes [3,20]. However, in recent years, the industry has faced new challenges related to global approaches to the extraction of raw materials and energy production. Due to global ecological trends and tendencies, assuming decarbonization [21,22], sustainable development [23,24,25], carbon emission reduction [26], and the use of renewable energy sources [27,28], mining companies must strive to be more environmentally friendly [29,30], minimize the impact of their activities on the environment [5,31], use new cleaner methods of exploitation [32,33], but also must take actions to increase their profitability [34]. Therefore, companies operating in the mining industry around the world must take various actions, which is reflected in the literature. Moreover, some papers analyze coal exit plans—this topic can be found in papers concerning Germany [35,36,37]. What is more, process management and mapping processes have also been the subject of some research conducted in the mining industry, for example: [38,39,40]. Based on the literature review, it can be claimed that there are no papers referring to the process approach in Polish mining while at the same time presenting the practical implementation of this strategy. There are theoretical papers, and papers that suggest a need for change; however, a practical example of implementing the process approach is still missing in the literature, thus providing justification for the current study.

This article presents one of the solutions that can be implemented by Polish companies operating in the mining industry. This paper presents the process of implementing the process approach at Lubelski Węgiel (LW) Bogdanka S.A.—a company operating in the mining sector—whose experiences can be an inspiration for other entities. The implementation of the process strategy at LW Bogdanka S.A. included the analysis, design, and optimization of business processes, taking into account the unique requirements of the mining sector. The essence of this approach was to focus on operational improvements, eliminating unnecessary activities and building an organizational culture conducive to innovation and continuous improvement. In this article, the authors presented the key steps taken by LW Bogdanka S.A. in the process of implementing process management, identifying best practices and lessons that may be valuable to other enterprises seeking to improve their operations through a process strategy.

2. Materials and Methods

This article uses the case study method, which is an empirical study in which a selected phenomenon is subjected to detailed analysis. This study focused on the implementation of a process approach to the management of LW Bogdanka S.A. This method included an in-depth analysis of the company in terms of the introduction and development of process management. The conducted case study includes the following elements: assumptions of the process approach and process analysis of LW Bodganka S.A. (including implementation of IT tools), modeling of processes (designing a map of processes), development of process architecture and organizational structure in the context of the process approach, identification of the state of advancement in process management at LW Bogdanka S.A., and, finally, an analysis of functional areas in terms of problems and solutions. The aim of this paper was to describe the entire process of implementing a process approach to management in one of the most important mining companies in Poland. The subject of this study was LW Bogdanka S.A. for several reasons: Firstly, it is one of the most important mining entities in Poland. It ranks alongside Polska Grupa Górnicza (PGG) and Jastrzębska Spółka Węglowa (JSW). Secondly, hard coal is a key energy resource—the basic source of electricity and heat in Poland. The mining industry in Poland is one of the key industries in terms of energy production. Another premise for choosing LW Bogdanka S.A. as the subject of this study was an actual need to increase the effectiveness of management within the company, which was struggling with many problems, as well as to increase the efficiency of the entire process of the production and sale of hard coal. Since the management of a mining company is a very complex issue, the process approach presented here is only a fragment of the entire process of restructuring the mining industry in Poland. The objective of the research presented was to incorporate the company with a process approach to enhance its management and to improve the effectiveness of the mining process. The subject of this case study was the company LW Bogdanka S.A., which is one of the largest producers of hard coal in Poland. Its coal is mainly used to generate electricity and heat, with the energy sector in eastern and northeastern Poland being the largest consumer. At LW Bogdanka S.A., coal production is carried out in three mining fields including Bogdanka, Nadrybie, and Stefanów. In 2022, the majority of company’s output was the fine coal sort, and it was at 98.1%. The remaining output comprised pea coal at 1.3% and chestnut coal at 0.6%. The company currently has four concessions for the mining of hard coal. If production continues at about 9 million tons per year; deposit resources in the key areas will be sufficient for more than 50 years of operation [41]. The case study method was chosen for several important reasons: First, a case study is used to analyze phenomena of an exceptional nature, which are difficult to assign to a larger group of repeatable cases. The described case is original and specific, which is particularly true for the mining industry. Each mining industry in different countries has its own specificity, determined by factors such as geological conditions, legal regulations, political situation, and other local aspects. As a result, mining entities operating in different countries differ from each other, which usually makes transferring solutions from one country to another difficult or impossible. Additionally, in Poland itself, there are few mining entities, and each of them plays a key strategic role in the mining sector. Examples include such giants as Jastrzębska Spółka Węglowa, Polska Grupa Górnicza, and LW Bogdanka, which, although operating in the same market, significantly differ from each other in terms of efficiency, profitability, management, size, and mining locations [42]. These differences make it difficult to transfer solutions effectively applied in one entity to another directly. The case study method was chosen for LW Bogdanka due to its unique nature. The results of this article can provide valuable guidance and reference points for other mining companies but cannot be transferred in their entirety to other entities. Each company requires an individual approach and customized solutions, which makes this method particularly valuable in the analysis of such exceptional cases. Naturally, the general applicability of the process approach was confirmed as a result of this research. Therefore, this study and its results may be an important point of reference for other mining companies that want to manage through processes.

The study activity involving the implementation of the process approach was primarily concerned with business strategy, organizational structure, operational processes, and organizational culture. Each area was carefully analyzed, identifying key factors that influence the effectiveness of implementing the process approach. During the case study, observations were made, interviews with company’s managers and key stakeholders were conducted, and documentation related to process management implementation projects was analyzed. Referring to interviews, both individual and group interviews were used. Some of the authors also participated in expert panels. The results of the interviews were recorded on sheets and then analyzed by the authors. The results were also included in the internal reports of LW Bogdanka S.A. Based on them, plans, goals, stages, and strategies for implementing the process approach to the enterprise were developed.

The case study included the analysis of business processes (main processes and subprocesses), implementation of the Architecture of Integrated Information Systems (ARIS) tool, creation of business process architecture, and development of a company process map. The ARIS tool played a crucial role in developing the process map for LW Bogdanka S.A. by providing a comprehensive platform for modeling business processes. It enabled the visualization and analysis of the main processes and subprocesses within the company. ARIS allowed for the team to model and describe organizational dependencies. Due to its usage, professional modeling of business processes was facilitated. The selection of the tool was based on its strong capabilities in business process modeling, efficiency improvement, and enterprise architecture management. ARIS offers a comprehensive platform for designing, documenting, and optimizing business processes. It supports a wide range of modeling languages, such as EPC and BPMN, making it highly versatile. Compared to other business process management tools such as Bizagi [43], IBM Blueworks Live [44], Microsoft Visio [45], and Lucidchart [46], ARIS stands out for its comprehensive features and depth of functionality. Bizagi is user-friendly and good for automating workflows but lacks the advanced enterprise architecture capabilities that ARIS has. IBM Blueworks Live is focused on cloud-based collaboration but does not offer extensive modeling languages and detailed process optimization tools, which can be found in ARIS. Microsoft Visio and Lucidchart are effective for basic diagramming but are limited in supporting complex process reengineering and integration with IT systems. ARIS provides advanced tools for business process improvement, making it a suitable choice for large-scale industrial operations like LW Bogdanka S.A.

Obstacles and challenges encountered during the implementation of this methodology are also presented in the context of the specificity of the mining industry and the organizational culture of LW Bogdanka S.A. The measure of success in implementing the process approach in the enterprise was the successful mapping of ongoing processes, planning and developing an implementation strategy, and effective use of the ARIS tool. In the area of human resources, the key element of the measure of success was the effectiveness of training implementation and its successful completion by employees, enabling the appropriate adaptation of new processes in organizational practice.

3. Results: Implementation of Process Approach in LW Bogdanka S.A.

3.1. Assumptions of the Process Approach and Process Analysis

The expected result of implementing the process approach at LW Bodganka S.A. was to improve the mine’s operational efficiency. Eliminating certain natural organizational barriers may have contributed to this. The basic assumptions for achieving full integration of existing traditional functional areas include the following:

• Identification and characterization of processes, and then their analysis in terms of efficiency and effectiveness in achieving the goals set for them;
• Development of solution scenarios for “new” processes and activities related to their implementation. The aim of this activity is, first of all, to strive to increase the efficiency of processes, eliminate functions, identify and eliminate organizational barriers, as well as improve relationships in the company;
• A change in the awareness of key people responsible and co-responsible for individual processes regarding the need for further actions to optimize the process management structure. It is very important to strive to achieve an attitude of “willingness” to continually improve.

When implementing the process approach in a mining company, important issues included the following:

• Determining the scope of responsibilities of people responsible for implementing the process approach;
• Establishing detailed rules of communication at each level;
• Analysis of existing materials containing data and information, especially with regard to processes implemented in the enterprise;
• Presentation of the main goals, assumptions, and methodology of the project;
• Determining the scope of necessary training for management staff and the team in the field of the process approach to business management;
• Determining the scope of training in process modeling using Architecture of Integrated Information Systems (ARIS) tools.

An analysis of the business processes at LW Bogdanka S.A. was carried out according to the methodology based on the ARIS Value Engineering (AVE) standards, developed on the basis of the experience of a world-class authority in the field of enterprise management and organization—Professor August Wilhelm Scheer. For redesigning or reorganizing of the company or even some of its units, the solution known as ARIS Value Engineering may be applied. Its objective is to reduce costs or quickly perform post-merger integration [47]. ARIS Value Engineering is the modeling procedure suggested and applied by IDS Scheer.

The AVE design methodology can be applied at all stages of the business creation and development cycle, starting from the development of the enterprise strategy aimed at reorganizing basic business processes from process cost management to the introduction of information systems and subsequent optimization of the enterprise [48]. ARIS is a popular modeling method for enterprise architecture management and business process management. This modeling method for enterprise architecture and business process management provides extensive support for modeling service-oriented IT architectures [49,50]. An IT system can be described on different abstraction levels using different modeling languages. Modeling notations, such as EPC, BPMN, BPEL, UML, ERM, organizational chart, IT City Planning, and others, are available using the ARIS software platform [51]. The ARIS software platform offers mechanisms and algorithms as its products. These include the following: ARIS Business Architect, ARIS Business Publisher, ARIS Process Performance Manager, ARIS Express, ARIS MashZone, etc. All the mentioned elements together create the ARIS modeling method. The modeling procedure (which is AVE) and modeling language (which is notation supported by ARIS platform software products) together are the modeling technique.

The essence of the AVE process approach to management is to break away from a focus on functional structure and shift that focus processes, especially those related to customers and external suppliers [51]. The second aspect of the process approach is the emphasis on the importance of organizational culture in the effective functioning of the company, in particular on bottom-up initiatives and teamwork. The main goal of this approach is to improve the functioning of the organization so that it fully meets the changing expectations of customers. The aim of process orientation [52,53] is also to increase the effectiveness of activities, the quality of their results, and to reduce the costs and time of their implementation. A necessary condition for introducing process orientation is to consider the company as a whole and improve related activities from various functional departments.

In preparation for business process modeling, the team had to answer the following questions:

• WHO is responsible for implementing a given task (organizational units)?
• WHAT should be performed (functions)?
• WHEN should it be performed (in time, sequence in the process)?
• WHAT data, information, services, products are needed to perform a function and WHAT data, information, services, products are obtained as a result of performing a given function?

In order to maximize the effects of the project implemented at the Bogdanka mine, it was decided to use professional tools from the market-recognized ARIS family to develop a process visualization. For this purpose, ARIS Toolset and ARIS Easy Design, used for professional modeling of business processes, were purchased. The decision to purchase a license meant that all further design work, including the training of the project team, was devoted to learning and adapting AVE methodology to the specificity of the mining industry and the needs of the current project.

3.2. Modeling of Processes

In accordance with the adopted initial assumptions, a model was created to describe organizational dependencies in the form of graphic algorithms according to the IDS Scheer methodology. For both the strategic presentation of the company and the process map, a group of models was selected based on the need to cover all aspects of the organizational model of LW Bogdanka S.A. Figure 1 and Figure 2 present the map of the main processes and the subprocesses of the company, respectively. The main processes include, first of all, a so-called mega-process, which consists of inquiry and order services, the purchase of materials, distributing the product to the customer, as well as such elements as product development, development of production processes, selection and development of suppliers, product sales, and service. When it comes to supporting mega-processes, these include planning and development of staff, finances and administration, and information systems.

There are four basic levels of process management in business process architecture:

• LEVEL 1:

The design and modeling of processes at the first level, as in the ARIS concept, involves modeling of economic processes and their reengineering using tools such as benchmarking, simulation, and quality control tools. Available reference models are also used at this level. In this analysis, LW Bogdanka S.A. started at this level.

• LEVEL 2:

Process management at this level involves planning and controlling current processes from the point of view of the process owner. The process owner can use tools enabling management of process time and costs and is informed about the process implementation status using the monitoring system.

• LEVEL 3:

Workflow control. Electronic documents—objects of a given process, e.g., a customer’s order from one workstation to another—being transported. Transport is carried out using special workflow systems.

• LEVEL 4:

Processing. At the fourth level, processing means specific processing of data and functions by organizational units, and therefore the implementation of economic process functions. At this level, application systems are used, ranging from text editors, through integrated management support systems, to Internet and intranet applications, such as the Java programming language.

The four levels of architecture presented above are closely related: process management at the second level provides information about the actual processes, while constant process improvements are made at the first level.

At this point, it should be clarified that the developed ARIS tool platform effectively supports the following projects:

• Designing and documenting business processes and organizational structures;
• Reorganization and improvement of business processes;
• Support for Integrated Management Systems implementation projects;
• Supporting projects for the development and implementation of IT solutions, and many other projects related to the optimization and improvement of organizational and management systems.

Achieving the benefits described above is only possible if processes are correctly described using activities at the operational level. In addition, their boundaries must be defined, the owners of these processes must be designated, and people must be responsible for ensuring that the maps are up to date and continuously optimized. Only when the architecture of the solution is properly developed is it possible to use the reports available in ARIS. These reports, for example, specify the scope of responsibilities of individual employees, or use IT systems. An important factor from the point of view of the functionality of the implemented approach was the fact that when determining the method of describing processes, it was necessary to prepare graphic models, both strategic and process, in a way that was understandable and accessible to the end users, i.e., employees of LW Bogdanka S.A. Ultimately, the scope of this project was also to support the implementation activities and subsequent use of the designed organizational model based on the company’s own IT and organizational solutions.

A map of business processes for LW Bogdanka S.A. was created, as already mentioned, in accordance with the modeling convention adopted in the AVE methodology, assuming the description of processes at three basic levels. This methodology assumes the creation of process architecture using a hierarchy that progresses in depth—a method going from a general to detailed perspective that consists of defining the general process areas of the organization and then detailing them to the operational level, i.e., the activity level.

As part of the adopted method of describing the entire organizational model of the company, i.e., strategy, process map, and organizational structures, a number of definitions and concepts were used that characterize individual elements of the adopted solution. A diagram presenting the discussed idea about the approach to developing a multilevel (general and detailed) map of enterprise processes is shown in Figure 3.

3.3. Organizational Structure in the Context of the Process Approach

Lubelski Węgiel Bogdanka S.A. has an organizational structure of a functional type. This structure allows for the separation of four main subsystems of the company:

• Trade and transport;
• Production and investments;
• Human resources;
• Finances and accountancy.

In each of the above-mentioned subsystems, there are grouped specialists who specialize in performing a given scope of activities, constantly improving themselves and increasing the efficiency of the departments’ functioning. The responsibility and scope of information held by individual organizational units are clearly defined. The main decisions in the company are made by the top management, which connects individual functional divisions.

The choice of a functional structure—characteristic of the entire domestic mining sector—is caused by certain restrictions on organizational changes resulting from provisions in geological and mining laws (necessity of the existence of a shooting service, operations manager of the mining plant, and certain organizational subordinates).

Basic organizational units of the company:

• Organizational divisions—a grouping of organizational units and independent positions subordinated directly to a specific member of the company’s management board or division managers.
• Organizational units—departments, sections, and operational units that are a grouping of workstations subordinated to one manager;
• Managerial and independent positions, separated in the organizational chart.

The company applies the principle of single-person management, which means that each employee reports to only one direct superior. Employees are obliged to follow the orders of higher-level superiors, but they must inform their direct superior about accepting such an order. The company’s management in the field of mining and geological law is carried out in accordance with the arrangements adopted between the mining office and the company’s management board. The person representing the company in this respect is the mining plant operations manager, and management is based on the approved mining plant operation plan and decisions issued by the state and district mining office.

According to the literature, the state of advancement of process management in enterprises can be divided into four phases [54]:

• PHASE ZERO—In the zero phase, processes are not noticed by people operating in the organization. This is because in this phase, the company focuses on its organizational structure. This structure sanctions and reinforces the hierarchy of the division of labor and the associated vertical powers and responsibilities. In individual divisions, there are employees who work well together due to common tasks, qualifications, and experience. Managers, on the other hand, focus on managing their activities. Problems arise in situations that cross the boundaries of functional divisions. Responsibility for coordination and integration rises up, even to the level of the company’s president. Processes are sequences of coordinated activities located in different places. Such activities are performed in every company, but in the first phase they are not comprehensively perceived and managed at the operational level. The main disadvantage of a functional organization is the specialization. In the case of management staff, knowledge of the managed area usually begins and ends at the border of the subordinate organizational unit. In many cases, this is general knowledge, which is completely understandable and justified. The lower the organizational hierarchy, the greater the knowledge of details, but the narrower the field of view.
• PROCESS INITIATIVES PHASE—In the second phase, the processes are already visible. This is actually the only significant difference between this phase and the previous one. The same traditional organizational structure still applies. However, there are business process maps developed as part of a project, just like in our case. The condition for moving from the first to the second phase is an appropriate scope of process maps. They should cover all company processes or at least those that are considered key. These maps should show horizontal connections and dependencies of activities in various, organizationally separated areas of the company. Thanks to maps of this scope, the company begins to develop awareness and knowledge of these connections. An additional element of process initiatives are teamwork experiences and the exchange of knowledge regarding mutual dependencies, and this is an element even more important than the diagrams used on this occasion.
• PROCESS MANAGEMENT PHASE—In the third phase, all company processes should be fully inventoried and described. Process descriptions—which are very important—are updated on an ongoing basis. There is widespread awareness and practical knowledge of the interdependence of activities in the company among employees. First of all, in this phase, people responsible for the processes appear, the so-called process owners or process leaders who are assigned responsibility for the proper functioning of processes. This primarily concerns continuous improvement and the development of processes. Along with responsibility, process owners should also receive appropriate tools for managing process efficiency in the form of a system of evaluation indicators, tools enabling measurement (integrated system), and competences in motivating those who participate in the process they manage. In a company that manages its processes, all the above-mentioned elements integrate appropriate planning, implementation, and control procedures, which are included in the organizational regulations, formalizing the organization’s process approach. However, the third phase of process maturity is not characterized by these formal elements alone. A very important component of the company in this phase is also an appropriate organizational culture, which should be built through continuous employee awareness, using both internal communication tools and appropriate training.
• PROCESS PHASE OF ORGANIZATIONAL STRUCTURE—In the last phase, the company manages its processes as in the previous phase, but the formalization of processes reaches an even higher level. In the vertical dimension, there are still directors of functional departments, while in the horizontal dimension, there are process directors. Business processes are gaining in importance and are at least as important as departments and organizational units. In a company with a process-based organizational structure, the management of people and the work they perform is separated. This is sanctioned by separate organizational positions and the areas of responsibility assigned to them, as well as the necessary power in the sense of the ability to issue official orders and reward and punish depending on results. Managerial power in the vertical dimension is clearly reduced and focuses on the development of employee skills, allocation of tasks and implementation of partial process indicators. Managerial power in the horizontal dimension is related to the implementation of indicators for entire processes and their improvement. The above-mentioned separation of people and process management is related to far-reaching structural changes and changes in motivation, budgeting, and controlling systems.

As a result of the work carried out, LW Bogdanka is currently in the second phase of process maturity. This level was practically achieved during the implementation of the process approach described in this article. Before its commencement, the company was in the zero phase.

Of course, there are still many activities to be implemented for the company to develop and move to the next phases. However, starting the entire process of presenting the thinking behind and approach to process management—moving from the zero phase to the first phase—is a huge step, and changing one’s thinking and approach and defining a new management strategy is a stage that is met with a lot of resistance. So, we can say that the transition from phase zero to phase one was a huge success. It should also be noted that the mining industry—especially in Poland—is quite a conservative and traditional industry in which approaches often do not change over the years. Firstly, changing the attitude of managers and making the decision to introduce changes is very difficult, but when this is achieved, it can be called a success.

4. Analysis of Functional Areas

Implementing the process approach is effective in problem solving as it provides a structured framework for understanding and addressing issues comprehensively. By clearly identifying and building a map of business processes, the company can better identify and analyze problems, leading to more sustainable solutions. The evaluation of current processes, the taking of corrective actions, and the Plan–Do–Check–Act (PDCA) cycle resolve current issues and foster continuous improvement, ensuring long-term operational efficiency and effectiveness. The tables below present a comprehensive overview of diagnosed problems and corresponding suggestions within each functional area of Lubelski Węgiel Bogdanka S.A.

Table 1. Analysis of the logistics, warehouse, and machinery management departments—a summary of diagnosed problems and suggestions.

Diagnosed Problems	Suggested Directions for Improvements
Logistics Department
Lack of communication between production planning and purchasing planning. Lack of short-term and medium-term purchasing planning. Lack of coherent and transparent policy for planning and purchasing materials. Lack of control over the assignments of deliveries to customers, purchase orders, and stocks.	Development of a concept and implementation of a coherent and transparent planning policy, taking into account the link with production planning. Implementation of order fulfillment control mechanisms and inventory control (non-rotating). Implementation of a supplier evaluation system.
Warehouse and Machinery Management
Contracts for underground materials are concluded independently of the logistics department, which makes it more difficult to coordinate deliveries and negotiate contracts. Orders to contractors concern services related to casings, i.e., regeneration, repairs, improvements, etc. No tools enable precise control of the degree of service implementation concerning the material flow. Verify that requirements are justified in controlling users’ collection of materials following their orders. All requirements, including office supplies, go through the warehouse department, which is unjustified, mainly because the warehouse is located within the logistics department. It is necessary to develop a procedure for creating a monthly plan, but making a work plan is also problematic. There is a visible overlap of many competencies in the warehouse, machine management, and logistics areas.	Participation of warehouse area users in developing the concept and implementation of planning and purchasing policies within the logistics area. Full integration of areas and consideration of this integration when developing IT tools supporting the implementation of logistics and warehousing processes. Developing of clear and effective procedures, taking into account interactive information of circulation participants about changes in the status of documents/topics in circulation. Implementing the necessary IT tools supports the processes’ efficiency (minimizing labor intensity). Developing and implementing IT solutions to increase the efficiency of approving requirements, considering the integration of logistics and warehouse areas. Develop and implement IT solutions that support the recording and control of contracts in the scope of the implementation of regeneration services.

outlines the key issues and suggested corrections. It can be claimed that standardization is needed in the case of the analyzed departments. There is also a need for developed planning policies and clear procedures. Improvement in these fields can make processes clearer and can help to avoid miscommunication and misunderstandings.

Based on the analysis of the other departments’ operation and work organization, presented in

Table 2. Analysis of chief mechanic, sales, and rail transport departments—a summary of diagnosed problems and suggestions.

Diagnosed Problems	Suggested Directions for Improvements
Chief Mechanic
Lack of formal consent to conduct activities such as lubrication management, supervision over the performance of current inspections, and maintenance and repairs performed on one’s own current machine management. Lack of control over archiving operating documentation of machines and devices. Lack of an IT database of the archival resources (acceptance protocols, periodic inspection books, etc.) and delivery documentation (declarations, certificates, instructions, etc.).	Ensure the availability of data on downtime and failure rates of devices (which is directly related to providing integrated IT systems in investments and repairs). Introduce a consolidated model of rational management of owned assets. Support management of the risk of failure of used mining equipment. Build an optimal controlling system for this area of activity.
Sales Department
Due to staff shortages, especially in the warehouses, two people are to be taken to the quality department. The coal warehouse was moved to the sales department relatively recently, and the staff is to be moved back to the quality department—this situation will further deepen staff problems. There is a lack of quick accounting of documents, such as invoices and bank statements, which results in the lack of availability of data on the client’s settlements online. The issue of prepayments is also problematic, as there is a lack of current information from the accounting and finance departments. The sales department should not perform quality control. The problem concerns staff shortages and transferring the samplers back to the quality department. Lack of online information on the status of customer settlements (including prepayments).	Full integration of sales records with warehouse records (coal processing), accounting, and the forwarding department. Automation of reporting (especially regarding data for the quality management system). Provide a precise definition of the amount of coal revenue and procedures for balancing revenue and expenditure, introducing appropriate definitions and disseminating them throughout the organization. Introduction of organizational changes regarding warehouse staffing. Standardization of sales procedures—appropriate technical infrastructure.
Rail Transport
Lack of consistency between forwarding databases and sales data. High workload associated with registering coal shipments. Lack of possibility for detailed, cross-sectional reporting of cost data related to repairs and rolling stock inspections. Lack of flexible tools for reporting rolling stock availability.	Introduction of tools that fully integrate rail freight forwarding data with sales area data. Introduction of tools that enable automatic or semi-automatic recording of transport data (using code readers or portable terminals). Introduction of an IT system that allows for detailed and cross-sectional reporting of cost data regarding rolling stock maintenance.

, it can be concluded that generally, there are problems with data organization, work descriptions, and tool instructions. Building a controlling system and database will help address problems in the chief mechanic department. The sales department mainly needs standardization of procedures and precise work descriptions, while introducing more automatic tools for the rail transport division is needed.

The electricity and wealth management departments, as shown in

Table 3. Analysis of electricity management, investments, wealth management, and quality divisions—a summary of diagnosed problems and suggestions.

Diagnosed Problems	Suggested Directions for Improvements
Electricity Management
Lengthy purchasing and tender procedures; the tender department (EPU) is limited to organizational and formal functions. Databases in individual branches are separate and inconsistent (each is maintained separately); no possibility of automatic cross-sectional reporting. Information is provided in the form of sent files, paper documents, orally, or by phone. There is a problem of lack of time for foremen—it is not possible to introduce additional activities related to data registration in IT systems to their duties. No possibility of detailed reporting on the performed inspection, maintenance, repairs, and causes of faults or other cause-and-effect relationships in the scope of repairs, renovations, or downtimes collectively for individual types of devices.	Introduction of a uniform IT solution enabling consistent and precise reporting of quantitative, cost, and qualitative data regarding work carried out within the area.
Investments
Lack of IT tools supporting the implemented processes Lack of possibility of flexible reporting of issues within the framework of investment implementation.	Introduction of IT tools integrating investment planning and investment implementation, up to putting the facilities into use and supporting the implementation of investment processes and accounting records of investment events.
Wealth Management
Equipment receipt takes place in logistics. Wealth management downloads data to the low-value fixed assets registration system, which must be imported from the system. Currently, technical problems here significantly hinder work and cause the need to maintain double records. This state is temporary and results from the implementation of new IT tools. Need for full integration with the accounting system. Necessary simplification of procedures in the scope of functioning of the entire enterprise. Necessary introduction of unambiguous, clear, and documented organizational regulations. Necessary precise and clear definition of responsibilities and procedures. Necessary regulation of document and information flow. Lack of information within the organization about important events (e.g., privatization)—applies to the entire mine—necessary introduction of internal PR Necessary introduction of technical means enabling automatic inventory.	Development of document and information flow procedures that will take into account the requirements of single data entry, flow readability, and unambiguous definition of competences. Full integration of IT solutions in the field of asset management, accounting, warehouse management, and repair management. The solution should enable authorized persons to view appropriate data resources. Development and implementation of a solution for inventory automation.
Quality
Problem of locating samplers within the sales and quality departments. The warehouse should be located in the sales department. It cannot be located in the quality department due to the conflict of interests that may be raised by external inspections (the quality department cannot check the warehouse as its owner—this is a problem for accreditation). Lack of electronic tonnage transfer from the sales department to the quality department—this is transmitted by phone and entered into the system manually (a new system is currently being implemented).	Solution of warehouse organization suggested by the quality department manager. Integration of IT solutions functioning in the quality department, in particular in the scope of solutions for sales and mechanical processing of coal, Introduction of improvements at the level of electronic document circulation (omitting paper versions or supplementing paper versions with electronic circulation to accelerate the circulation of information).

, demonstrate a greater number of necessities and weak areas compared to the quality and investments departments. The recommendation is the introduction of IT solutions that can help address inefficiencies and improve overall performance. Implementing such solutions may allow for these departments to better manage resources, optimize workflows, and enhance decision-making processes.

When it comes to human resources and payroll, there is a lack of formalized job descriptions. To implement ISO procedures, tools enabling improved operations should be used more actively for the environmental and safety management departments.

Table 4. Analysis of the environmental protection, occupational health and safety, human resources, and payroll departments—a summary of diagnosed problems and suggestions.

Diagnosed Problems	Suggested Directions for Improvements
Environmental Protection
Lack of consistent data sources necessary to create required reports. Lack of tools enabling the implementation of ISO procedures at the operational level and their more active use. Lack of flexible tools for recording and reporting costs divided into tasks.	Implementation of IT solutions enabling automation of the creation of reports necessary for the required reporting, including the register of cost invoices. Implementation of tools enabling the implementation of ISO standard controlling at the operational level. Implementation of IT tools enabling precise cost control divided into tasks.
Human Resources
Problem of unnecessary preparation of payrolls and non-periodic awards. Entering employees’ data twice, i.e., in the HR and payroll departments. Supplementing documents from previous years—a matter of workload and data security. Lack of data integration and, therefore, the ability to view the shared data. The availability of some data is limited due to the lack of data integration between them (e.g., preparation of a list of employees by department and position). Lack of formalized job descriptions in any form. There is also no formalized, specific HR policy, description of career paths, or motivation policy.	Strong integration of IT solutions within the HR, occupational safety, payroll, accounting, and finance areas regarding single entry and free access to data within the defined authorizations. Defining a competency structure for positions operating in the company, independent of the personnel structure—this project should be implemented in a manner that is consistent with the company’s collective labor agreement while ensuring that the new competency structure precisely describes the company’s dynamic and static organization. Creation of a formalized description of positions and career paths. Defining the motivation policy. Introduction of electronic circulation of some HR documents (e.g., leave applications).
Payroll
The payroll system is relatively archaic. To obtain reporting or statistics, it is necessary to make up programs—there is a lack of a flexible reporting system. Data are manually transferred to the cash desk for payments—this is not a major problem because there are only a dozen or so to several dozen items per month. Pensions, deductions, alimony, etc.: handling formal matters related to these topics takes a lot of time. The most laborious issues concern: Verification of data from the markup; Calculating taxes, ZUS, and handling declarations; Handling contracts for services—preparing a list—in addition to ad-hoc agreements; Calculating bonuses after changes in basic data; Cooperation with trade unions, preparing data for negotiations. Lack of a coherent HR and pay policy (e.g., no up-to-date job description or motivation system). Separating investment-related payroll costs from the pool of all payrolls is also a problem. Limiting contributions in the case of two full-time positions—cooperation with the payroll department in the mining corporation. Lack of connection between the social system and payroll; taxes are not calculated; they must be corrected manually.	Introduction of IT solutions ensuring the recording and archiving of all employee data necessary from the point of view of the payroll department, as well as other departments (in particular human resources and occupational safety). Introduction of IT solutions enabling the implementation of all functions within the payroll area (e.g., records for pension and disability purposes, handling of all pay components, sickness benefits, calculation of taxes—also on social benefits—etc.). Introduction of IT solutions enabling free shaping of pay data reporting (within the authorizations). Development and implementation of directions for company motivation policy changes.
Occupational Health and Safety
Lack of documentation of the work environment. Lack of an occupational health and safety program covering the description of qualifications and training completed by employees. Lack of knowledge of employees on what to do with a given document; documents end up in the wrong place, and there are “squabbles” as to who should provide data within a specific scope and to whom it can be transferred—it is necessary to regulate these issues.	Development and implementation of precise and clear procedures for circulating documents and information and mechanisms supporting and streamlining this circulation. Introduction of IT solutions enabling the implementation of all functions within the occupational health and safety department (e.g., documenting the work environment, employee qualifications and training, and supporting the creation and archiving of accident documentation).

provides detailed suggestions for the diagnosed problems.

The company faces significant inefficiencies due to a lack of integration and automation in the accounting and finance, economic analysis, tender, management, and computer science departments (

Table 5. Analysis of accounting and finance, economic analysis, tender, management, and computer science departments—a summary of diagnosed problems and suggestions.

Diagnosed Problems	Suggested Directions for Improvements
Accounting and Finance
Lack of full integration in recording economic events (warehouse, fixed assets, sales) and lack of fluidity of procedures. Lack of feedback flow to operational departments online. Lack of automation of some operations (fixed assets, declarations, and bank statements in manual transactions).	Introduction of an IT solution enabling full integration of accounting records of economic events and providing feedback to operational departments online. Reorganization (integration) of the accounting and finance departments in implementing the main processes (sales, purchases, and employee service).
Economic Analysis
Problems with budgeting and information flow (not only documents), lack of regulation in this area, or lack of implemented solutions (e.g., plans regarding types of support are not transferred to the logistics department). Generally, the company has a problem with the lack of order in the entire planning system. There is a phenomenon of manual data collection into one database, which delays the flow of information and causes the risk of errors. Lack of a coherent reporting system based on an integrated database and professional analytical tools. Lack of controlling management—data on economic phenomena are available and analyzed after the end of the month.	Introduction of an IT solution enabling full integration of operational and economic data, enabling efficient reporting. Introduction of a reporting tool. Development of a coherent information flow system. Introduction of an information/document flow management system and document depository.
Tender
Problems with preparing tender opinions include a lack of details and poor competencies of people preparing them. There is no transparent archive of technical documentation that could be used later for subsequent tenders. Minor corrections are necessary on the website used to publish tender announcements; this should be performed internally by the IT department because an external company takes a long time to make minor corrections.	Development of solutions improving the competencies of persons giving substantive opinions on tenders or ensuring the participation of persons with appropriate, discussed, clearly defined, and effective competencies on behalf of substantive units. Implementing effective material planning procedures. Implementation of electronic document circulation with change and version tracking mode. Implementation of an electronic archive of technical and tender documentation enabling free use of documentation in subsequent tenders.
Management Board Support and Company Restructuring
Lack of IT support in regulating the circulation and archiving of documents and information. Too small a role for the unit in shaping internal marketing. There are too few human resources regarding ownership changes.	Introduction of an IT system allowing for defining and controlling the flow of documents in electronic form. Development of a policy and introduction of tools for conducting internal marketing. Expanding the scope of process descriptions, large participation in projects related to implementing IT tools in documenting implemented solutions, and preparing procedures and instructions.
Computer Science
Lack of a company computerization strategy based on the company’s strategy. Huge dispersion of IT systems. Lack of technological and functional coherence of the IT systems used. Performing tasks related to handling business functions in IT systems.	Development of a company computerization strategy based on the company’s strategy. Targeting IT system development activities within the framework of the developed strategy with an emphasis on implementing an integrated ERP class IT system. Transferring tasks related to handling business functions to substantive units.

). These issues lead to poor information flow and increased risk of errors. Fragmented IT systems and inadequate strategic planning further negatively affect operational efficiency and decision-making. The authors have prepared some recommendations for every department (Table 5); these can lead to improvements in the current situation.

5. Discussion of the Results

The analysis of functional areas at Lubelski Węgiel Bogdanka S.A. reveals a variety of inefficiencies and challenges across key departments, highlighting the necessity for a holistic and integrated approach to process optimization. The diagnosed issues, summarized in the tables, point to common issues such as problems in communication, a lack of standardized procedures, insufficient IT integration, and the need for improved data management in many operational areas. These findings, although specific to Bogdanka, reflect broader systemic challenges in the mining industry that other companies, such as Jastrzębska Spółka Węglowa and Polska Grupa Górnicza, could face and need to address in their own operations.

The analysis identifies significant problems, among others, in logistics, warehousing, machinery management, sales, rail transport, and electricity management. The common element in these departments is the absence of efficient communication channels, which leads to operational inefficiencies. For example, in logistics, there is a lack of integration between production planning and purchasing, which causes delays and unnecessary costs. This problem could be mitigated by implementing a proper planning policy and an effective inventory control system. In the warehouse and machinery management departments, overlapped responsibilities and chaotic control over contract services negatively influence performance. The recommendation to integrate IT solutions for contract management and inventory control would not only streamline operations, but also reduce redundancy and improve decision-making. In departments such as the chief mechanic and sales, a lack of formalized procedures and job descriptions deepens these issues. This is particularly problematic in the sales department, where the need for integration between sales records and accounting systems is essential for transparent operations and customer settlement tracking. Automating these processes would reduce the risk of human error and facilitate optimal workflow management.

A key finding is the critical need for comprehensive IT integration in all functional areas. From accounting and finance to human resources and payroll, each department is hindered by outdated or non-integrated systems. The lack of real-time data access, manual data entry, and non-automated procedures create bottlenecks, slowing down operational processes and increasing the risk of errors. By implementing an enterprise resource planning system that integrates various operational departments, Bogdanka could improve data flow, reduce redundancies, and allow for more strategic decision-making based on real-time insights. This system would ensure that departments such as finance, logistics, and sales work well together, improving both productivity and accuracy. Furthermore, the introduction of IT tools supporting ISO procedures in the environmental protection and safety departments would raise compliance and operational standards across the board.

The process approach implemented at LW Bogdanka S.A. presents a structured methodology that has broader applicability beyond this specific case. Although Bogdanka’s unique operational conditions, including its geological, mining and regulatory environment, and location of longwall faces, shape the specific processes introduced, many of the principles behind this approach can serve as valuable insights for other mining enterprises in Poland, such as Jastrzębska Spółka Węglowa and Polska Grupa Górnicza, and around the world. In particular, the process-oriented management system, which focuses on improving operations, eliminating organizational barriers, and enhancing a culture of continuous improvement, can be adapted by other companies to improve their efficiency and performance. Both JSW and PGG, like Bogdanka, face the challenges of large-scale operations with complex structures, and integrating process management can help these companies better manage their resources, improve coordination between departments, and improve overall operational effectiveness. Moreover, the adoption of ARIS-based process modeling in Bogdanka offers tools and insights that other mining companies could use to map their business processes and identify areas for optimization. Although the specific conditions of each company, such as size, market position, and mining conditions, may differ, the general principles of process modeling, workflow optimization, and cross-departmental coordination can be broadly applied. Using Bogdanka’s case study on process transformation as a model or point of reference, other mining companies and groups have the opportunity to address similar challenges, particularly in improving communication and enhancing process transparency in their operations.

Companies such as JSW and PGG face similarly complex operational environments, with large-scale operations, multiple stakeholders, and regulatory challenges. The recommendations outlined, including the need for standardization, process integration, and the adoption of advanced IT systems, can be extrapolated to these companies. For JSW and PGG, adopting a similar process approach could results in further development, particularly in areas like logistics, inventory management, and machinery maintenance. IT integration would be essential to break down gaps between departments, allowing for better resource allocation, maintenance scheduling, and cost control. These steps would lead to more sustainable and profitable operations in the long term. Naturally, their case must be analyzed separately, but this paper can be a point of reference for them. What is more, an essential element of the proposed changes is the emphasis on the Plan–Do–Check–Act (PDCA) cycle for continuous improvement. This framework encourages companies to consistently review and improve their processes, ensuring long-term operational efficiency and adaptability. This approach is suitable for Bogdanka as well as for other mining companies. By ensuring that diagnosed problems are not only resolved but that mechanisms for future adjustments are in place, Bogdanka can mitigate recurring issues and continuously optimize performance. This approach is equally applicable to JSW and PGG, where ongoing adaptation is crucial for staying competitive in a dynamic market. The key to success lies in embracing an integrated, process-oriented approach that leverages modern technologies and promotes collaboration across departments.

Implementing a process approach in an enterprise as large and strategically important for Poland as Lubelski Węgiel Bogdanka S.A. brings many opportunities and benefits, but also the risks and challenges associated with such a transformation. In addition to the numerous positives, it is important to be aware that this process can cause serious difficulties. One of the most important risks is resistance to change, both at the management level and among employees. In large enterprises with an established structure, introducing a new management approach may be met with reluctance on the part of managers of individual departments who fear losing control or changing their current scope of responsibility. Similar concerns may arise among operational employees, who may be accustomed to traditional work methods and fear new technologies and processes. This resistance, if not properly managed, may lead to the failure of the entire transformation. It should also be noted that mining is a traditional and quite conservative industry, and it is often the case that there is large resistance to change, even strikes. Another significant risk is the implementation of IT tools that support process management. Problems can arise at many levels, including improper adaptation of tools to existing IT systems, which can result in a lack of compatibility. Technical and organizational errors, as well as problems with the quality of input data, can also significantly delay or disrupt the effectiveness of the implemented solution. In addition, there is a risk that employees will not be properly trained to use new tools, which can not only reduce the efficiency of processes, but even worsen the situation, introducing new problems related to downtime or disruptions in communication and work organization. During the implementation of new IT solutions, numerous technical problems can also occur, such as system failures, programming errors, or delays in the delivery of the necessary components. In turn, at the organizational level, poor coordination between departments or a lack of clear implementation procedures can lead to chaos and further disruptions in the flow of information and materials, which can consequently lead to production problems. It is also worth noting that an enterprise of the size and scale of Bogdanka may be overloaded during the implementation of a new approach. Too rapid an introduction of changes without proper preparation and testing can lead to serious problems with resource management, as well as employee discouragement. Overloading employees with new duties, especially those related to the use of IT tools, can lead to increased stress, lower morale, and consequently to an increase in the number of errors and accidents at work. Interpersonal communication can also be a problem if it is not well organized by managers. The key to success is therefore proper preparation, including management of the implemented change. This is the responsibility of managers of the entire process, as well as the managers of individual departments and the coordinators of individual tasks. It is very important to plan carefully, test tools, and identify risks in each field. Then, all risks should be minimized and the challenges related to the introduction of the process approach in LW Bogdanka S.A. should be met.

6. Conclusions

This article presents an example of the implementation of the process approach to management in the mining industry in Poland on the example of LW Bogdanka S.A. Such process management in mining in Poland sets new standards of efficiency and flexibility of operation. By analyzing existing processes, creating a process map, and using ARIS tools, the company focused on achieving business goals by improving operational activities. This approach not only provided better control over processes but also changed organizational culture by promoting a process-based approach. To sum up, adopting a process strategy opens new opportunities for LW Bogdanka S.A., enabling adaptation to dynamically changing market conditions.

Although the company is currently in the process initiation phase, further steps are necessary to achieve the full process structure. The transition from phase zero to the first required understanding and making employees aware of the essence of the processes and introducing appropriate cultural and organizational changes. The implementation of a strategy based on process management at LW Bogdanka S.A. is an example of an approach that has brought real operational and strategic benefits. By mapping and optimizing key business processes and using tools such as ARIS, the company has achieved better control over operational activities and the ability to adapt to changing market conditions.

In the mining industry, especially in Poland, where traditional approaches often persist for many years, such a transition can be met with a lot of resistance. However, when this is achieved, it can be considered a significant success, opening the way to further development and achieving subsequent phases of process maturity. There are still many activities to be implemented so that the company can continue its development and advance to the next phases of process maturity. This will require continuous effort, improvement, and awareness of changes in the business environment to maintain the pace of development and meet new challenges.

Successful mapping of business processes, the deployment of ARIS, and the effectiveness of training programs highlight the practical contributions of this research to the mining industry—a traditionally conservative sector. The original contribution of this study is related to demonstrating how process management methodologies, commonly employed in more dynamic industries, can be effectively adapted to the mining sector. This is particularly important considering the legal and organizational limitations and restrictions within the industry. Furthermore, research points to critical factors that influence the success of process management, such as overcoming organizational resistance and enhancing a culture of continuous improvement. The transition from phase zero to phase one of process maturity represents a significant achievement for the company and highlights the importance of leadership and strategic vision in delivering organizational change. In addition, from a practical perspective, this research provides valuable lessons for companies looking to implement process management strategies, particularly in industries characterized by rigid structures and resistance to change.

The process-oriented management approach proposed and used in Bogdanka presented in this paper can be applicable beyond this specific company, as it focuses on improving efficiency, eliminating barriers, and fostering continuous improvement—universal challenges in large-scale, complex operations like mining. Of course, Bogdanka’s case study is specific and cannot be repeated directly in other mining companies, but this research can be an important point of reference for them. There are some elements that can be treated as universal. This approach emphasizes coordination between departments and transparent workflows, which are essential to optimize resource management and communication in any organization. Other mining companies, such as JSW and PGG, can adapt this framework to better manage their operations, improve performance, and deal with similar structural inefficiencies, despite differences in market position or geological conditions.

Future research must explore how LW Bogdanka S.A. can transition from the second phase of process maturity to the third and fourth phases. Studies could focus on how the company can fully integrate process management, with an emphasis on formalizing the role of process owners and establishing comprehensive performance measurement systems. Special indicators that will measure the effectiveness of the whole implementation process and also in the separated departments should be developed. They should be developed on the basis of the KPIs, but they should be adjusted to mining and the company’s specifications. Moreover, since organizational culture plays a critical role in process management success, future research could study strategies to promote a culture that supports continuous improvement, teamwork, and process ownership in traditionally conservative industries such as mining.