Download - Black Mountain Mining (Pty) Ltd
Black Mountain Mining (Pty) LtdOperating Model – Business Improvement
Jacques Erasmus
Vedanta:- Head of Sustainability
27 May 2016
Association of Mine ManagersGeneral Meeting
Welkom
As an EXCO, where do you stand?
TacticalStrategic
3.1(a) Mine Manager 4.1 Senior Manager 2.a2 Owner Representative
Future - unknownPresent- certainty
Time Line
3
Strategic Context
ProcessStrategy & Culture
Systems, Processes & Mechanisms
Organisational Capability & Culture
People Capacity
• Safety leadership/behaviour• Performance focused (Team &
Individual)• Technically competent• Efficient / Cost conscious• Team based
• Safe and sustainable operations• Best in Class position• High performance, team based culture• Normative Management
• Employee Engagement & Lean structure
• Standard Operating Procedures• Performance Management
• Process, Sustainability & Marketing Development Leadership Staircase (including culture elements)
Integrated Projects Management Platform
4
Enterprise Risk Management
Suggestion Scheme
Near Miss Reporting
Change Management
Results Driven Office
Critical Controls
Vision & Targets
Projects Management Office
• Common Platform
• Using Sharepoint (Tracking) & Access
(Reporting)
• Project Managers Modules
• Project Managers update and control their
specific assignments
• Portfolio Managers Modules
• Portfolio Managers review and control portfolio
• Integrated Reporting Modules
• Customisable reporting to various parties
Innovation &
Technology
Operating Model Design Parameters
Business Improvement Cycle
5
Aspire/
Inspire
Analyse
Ideate
Identify (Investigate)
Implement
Measure
Formalise
Creating a culture of improvement
that inspires the people to seek new
and improved ways of doing things
Setting of goals to be achieved
Focus on finding the opportunities
Stimulate the generation of Ideas
includes both Ad hoc and Structured
idea generation
Focus on both individuals and
groups
inclusion of internal and external
parties
Specify the solutions
Investigate options
Prioritisation
Ensure Measurability
Action Plan
Resource Plan
Project Manage
Training
Wiring
Standardising
Reward/Recognise
Measure Against Project Objectives
Measure Against Business Intent
Process Review
Cost Review
Key Value Drivers
Benchmarks
Capacities and Constraints
Business Improvement Building Blocks
6
Business Intelligence
(Data Gathering and Analysis)
Performance Analysis
• Time and Motion Studies
• Data collation and review
• Benchmarking
Process Review (Bottleneck Identification)
• Process Flows
• Key Value Driver Tree Development
• Capacity & Constraints
Gap & VAS Analysis
• Volume Improvement Estimation
• EBIT Improvement Estimation
Ideation
(Solution Finding)
Structured Program
• Technology Review
• Benchmarking
• Root Cause Analysis
• Decision Analysis
• Risk Analysis
Continuous Improvement Program
• Suggestion Scheme
• Workshop engagements
• Meeting Comments
RDO
(Project Pipeline Management)
Project Prioritisation
• KPI Specification
• Benefit Estimation
• Resource Estimation
Project Planning
• Activity Specification
• Timeline Estimation
• Risk Identification
• Resource AllocationProject Monitoring
• KPI Tracking
• Activity Tracking
• Risk Tracking
Benefit Confirmation
Wiring (Formalise)
• Update of SOP’s, Training Material, Etc
• Process Reviews
Project Close-outs
• Documentation
• Sign-offs
Business Improvement Process Flow
7
Happens most of the time
Happens a lot
Almost never happens
Happens all of the time
Business Improvement Process
Bu
sin
ess I
nte
lId
ea
tio
nP
MO
/RD
O
Phase
Determine Key
Output Value Drivers
for the business
(Output KVDs)
Establish Baseline
Performance
Determine Targeted
Performance
(Internal – Bud, BDP
External – BIC)
Construct value
driver tree
Identify root causes
of shortfall
Produce/Adapt
implementation plan
for Initiatives
Implement Projects
according to plan
CI ideas
Reassess based on VAS
Monitor Impact Close Out Project
Capacity &
Constraints Analysis
Failure Analysis
Determine Key Input
Value Drivers for the
Bottleneck
Processes
Systems Bottleneck
Definition
Gap Analysis &
VAS
Identify
OpportunitiesDefine Initiatives
Determine Initiative
Value, Risk &
Complexity
Prioritise Initiatives
Project Development Platform
8
Key A
cti
vit
ies
Pro
cess
Ste
p
Structured
•Capacity & Constraints
Analysis
•Bottleneck Identification
•Performance Monitoring
•Strategic Reviews
•SWOT Analysis
•Process Reviews
•Etc.
Continuous
•Open Mind
•Brainwave
•etc
Ro
le
Pla
yers
Structured
•Brainstorming
•Research and
Development
•Mindmapping
•Etc.
Continuous
•Suggestions Scheme
•CI Sharing
•Meetings
•Etc.
Project Description
What will the project
deliver, by when
Scope of Work
•What will be done
•Implementation Strategy
•Milestones
Cost Estimation
•Material Cost
•Labour Requirements
•Benefit Estimation
•Financial Assumptions
•Savings/Gains
•Confidence Levels
Identification of
Opportunity
Generation
of Ideas
Project
Planning
Project
Approval
Project
ImplementationBusiness
As Usual
Validate
•Finalize benefits estimates
•Contract negotiation
completed (SC only)
•Implementation plan in
place (Ops only)
Authorise Project
•Assign Project Manager
•Approve Investment Plan
Implement, Track &
Report
•Execute implementation
plan (AO only)
•Track benefit delivery
•Finance validate benefits
numbers
•Audit benefit
•Report benefit
Sustain
•Update Policies &
Procedures
•Training of Staff
•Etc.
Close-out
Section Management
Section Staff
BI team
Section
Management
Section Staff
HSE
Finance
BI Team
Project Owners
Finance
BI Team
Project
Members
Project
Sponsor
BI Team
Project Sponsor
BI Team
Finance
Resp
Pers
on
Process
Owners
(Production,
Maintenance,
ect)
Project OwnersProject Manager
(Initiative Owners)Project Owners
PMO Roles and Responsibilities
9
PMO
Approve and sign-off all initiatives & projects
Hold Initiative Owners & Team leaders accountable for
results deliver
Monthly & Quarterly reviews
Precipitates Strategic Objectives to Functional
requirements
• Value drivers trees
• Capacities & constraints
• Flow sheets
• Benchmarking
• Gaps & prioritisation
Ensure Workshops are attended
Assign Initiative Owners to Projects
Ensure Projects are executed against plan
Manage assigned initiatives
Ensure delivery of targets
Detailed planning for prioritised initiatives
• Activities and deliverables (including timings)
Present plans, progress and analysis in relevant
workshops
HOD’s Section Managers
Project Managers BI Support
Provides Direction
• Setting of Aspiration
• Ensuring compliance to strategic objectives
• Develop KPA framework
Ensure adequate Resources
• Ensure people are releases to attend workshops
Review progress in module
• Ensure initiative owners are equipped and
capable to deliver
• Ensure work performed are inline with
expectancy
Facilitate development of fact base and assist with
analysis
Facilitation of Ideas and Options Generation workshops
• Facilitation of RCA’s where required
• Conduct Brainstorming Workshops
• Facilitate Expert Discussions where required
Assist with research/idea conception
Assist with Benefit Analysis/Justifications
Provide project management support to initiative
owners
• Project Planning
• Project Tracking
Track project pipeline in progress
Performance monitoring
Finance
Assist with Benefit Analysis/Justifications
Verify and sign off on Benefits achieved
10
What have we learnt?
•Variable in need of salt - a comprehensive People Solution: consider people as our major salt contributor. Looking after them needs to be the highest priority.
• IT Solution -Communication and culture changing tool, visually reflecting progress and motivating teams.
•Continuous improvement and Can Do Culture
•A structured approach to communication (includes management of change, meetings, branding, stakeholder engagement).
•Silos – Perceived non alignment of Exco as well as between centralised and decentralised services, are considered destructive.
Perception Survey
•Transformational leadership includes:
•Mechanistic
•Mining and making Zink
•Systemic
•Logistics, Admin, Systems
•Normative
•Corporate soul
•Norms
•Values
•Beliefs
•Strengths of character:
•Wisdom & Knowledge
•Courage
•Humanity
•Justice
•Temperance
•Transcendence
•As Leaders (and also), Managers, WE Influence and Guide Individuals and Teams, towards Understanding, Nurturing and Leveraging Diversity, to Achieve a Common Goal
•Heart (Care), Hand (Partner/Collaborate), Mind (Engage)
•Positive overall understanding of what High Performance Teams should look like and what will enable this (or restrict it)
•New definition of HPT should include the following elements:
•Team meeting targets (Goal Alignment)
•Renewal (Continuous Improvement)
•Individual and Team is healthy, growing etc. (Normative)
•Need for integrated people solution – too many initiatives
•Formal measurement of “soft” people elements lacking (Morale, Team and Individual Satisfaction)
•I-P-O not reflected in current measures.
•67% feel PDS has a High Performance Culture, but we have the potential to do more.
•Determine the balance between Concern for Production and Concern for People.
•CONTINUE themes:
•Communication
•Care for people
•Continuous improvement culture
•Safety culture
•Development
•Recognition
•START themes:
•Communication
•Development
•Building relationships
•Care for people
•Visible leadership
•Clear strategy
•Remuneration strategy
•Recognition
•Consistency
•Empowering
•Accountability
•Resilient & Competent Leaders
•STOP Themes
•Unfair treatment
•Avoiding accountability
•Instructive style
•Counter productive silos
•Unclear strategy
•Disempowering
•Over complicated systems
•Poor management of change
Normative Leadership HPT Survey STOP/START/CONTINUE
11
Normative Leadership Elements
12
Human Error:- Models and Management
The human error problem can be viewed in two ways: the person approach and the system approach. Each has its
model of error causation and each model gives rise to quite different philosophies of error management. Understanding
these differences has important practical implications for coping with the ever present risk of mishaps in clinical practice.
Summary points Two approaches to the problem of human fallibility
exist: the person and the system approaches The person approach focuses on the errors of
individuals, blaming them for forgetfulness, inattention, or moral weakness
The system approach concentrates on the conditions under which individuals work and tries to build defences to avert errors or mitigate their effects
High reliability organisations—which have less than their fair share of accidents—recognise that human variability is a force to harness in averting errors, but they work hard to focus that variability and are constantly preoccupied with the possibility of failure
13
PMO Roles and Responsibilities
Persons Approach:- The longstanding and widespread tradition of the person approach focuses on the unsafe acts—errors and procedural violations—of people at the sharp end: nurses, physicians, surgeons, anaesthetists, pharmacists, and the like. It views these unsafe acts as arising primarily from aberrant mental processes such as forgetfulness, inattention, poor motivation, carelessness, negligence, and recklessness. Naturally enough, the associated countermeasures are directed mainly at reducing unwanted variability in human behaviour. These methods include poster campaigns that appeal to people's sense of fear, writing another procedure (or adding to existing ones), disciplinary measures, threat of litigation, retraining, naming, blaming, and shaming. Followers of this approach tend to treat errors as moral issues, assuming that bad things happen to bad people—what psychologists have called “the just world” hypothesis
Systems Approach:- The basic premise in the
system approach is that humans are fallible and
errors are to be expected, even in the best
organisations. Errors are seen as consequences
rather than causes, having their origins not so much
in the perversity of human nature as in “upstream”
systemic factors. These include recurrent error traps
in the workplace and the organisational processes
that give rise to them. Countermeasures are based
on the assumption that though we cannot change the
human condition, we can change the conditions
under which humans work. A central idea is that of
system defences. All hazardous technologies
possess barriers and safeguards. When an adverse
event occurs, the important issue is not who
blundered, but how and why the defences failed.
14
Health Safety & Environment Management
Vision
To be the leader in Health, Safety & Environment Management.
To us, this means:
• To be a caring organisation for our employees and contractors
• We will not hurt ourselves or those working with us
• We will take care of our own health
Approach
• Each of us is responsible and accountable for working safely
• All will contribute towards constructing and driving our SHE plan
• We will use effective, practical systems to support our SHE plan
• We will learn from any incidents and accidents
• We will ensure we are competent to achieve our SHE plan
• We will ensure we are mentally and physically fit for work through ensuring
we follow the right lifestyle
Target 2020
Safety
• Zero Fatality
• LTIFR rate <1
• 100% compliance to VCCS
• Average work place safety rating >90%
• VSAP Score >85%
Health
• Nil new Occupational health diseases
• 95% of Employees have BMI of 35 or below
Environmental
• Gamsberg Offset implementation and
maintenance
• 100% compliance with BAP commitments
• 80% of waste recycled
15
BIC ModelWhat does best in class mean?
People
High integrity, values driven
Highly skilled
Passionate, committed and focused
Has the best interest of BMM Gamsberg at heart
Harmonious IR
Healthy DisciplineEquipment
Highest equipment availability
Highest equipment utilisation
Material
Regulatory compliant
Risk mitigation (Best suited)
Ergonomically designed
Environmental friendly
Environ-ment
Promote safe BIC production
Best system implemented
Design world class
Conducive to excellence (No
risk_fatigue)
Safety
VFL 100%
WP rating 95%
VCCS 100%
OHSAS 18001 no major findings
VSAP new projects 100%
LTIFR 0.25, LTISR 40, TRIFR 5, FIFR 0
(Low risk exposure, high maturity, good on & off the job safety , high
focus on leading indicators)
Occupational Health
BMI of 27 and less
Medical fitness pass rate 100%
(No HIV / Aids infections, no deterioration of lung function test,
no )
Occupational Hygiene
AQI (Silica exposure) of less than 0.3mg/m3
(no exposure to hazardous and or casogenic particulates, radiation,
lead, )
Environmental control
Fall out dust levels below:300mg/m2/day
Waste recycling volumes 80% of generated waste
Online ground water level monitoring
75% survival rate of rescued plants
(no net loss of biodiversity, no negative impact on ground water, No dust pollution, no hydrocarbon
spills,)
BIC SHE
Standards Desired Results
16
In closing
True empowerment – discussion not instruction. Mentor
& coaching programme particular to that project –
leadership programme.. manage a team of people.
Leadership – cultural flexibility, engage communicate, gives
their best takes a chance in people, to much control, allows
to develop, creates the environment to do their best,
leadership assessment
Listen - to your people use full skill set.
Relationships…personal
Keep it simple - to a set of meaning full rules, messages
fundamental issues – stop playing with risk matrixes –
focus on controls
And, …. Put on your gloves
Support emotional
transitioning
Implementation and continuous improvement
Foster creativity and spontaneity
Inspire continuous
learning and evolution
17
Questions
Together WE can
Your safety, my safety, our goal