Post on 03-Apr-2018
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Three-step problem solvingStep 1: Diagnostic
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To be the world's best gold company by finding,acquiring, developing and producing quality
reserves in a safe, profitable and socially
responsible manner.
Safety VisionEvery person going home safe and healthy every day.
Vision
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Barrick Values
Behave Like an Owner We accept accountability for our actions and results. We treat the Companys assets as our own. We areentrepreneurial and look for opportunities to grow our business. We act with integrity, operating within the
letter and spirit of the law and Barricks Code of Business Conduct and Ethics.
Act with a Sense of UrgencyWe are decisive, take initiative and make tough decisions when necessary. We set priorities and act on them.
Be a Team Player We work safely at all times. We respect our colleagues and those we interact with outside our organization. We
listen to others for understanding and we ask for help. We build trust and celebrate our successes. We helpothers improve their effectiveness. We promote confidence and trust in each others capabilities.
Continually ImproveWe are always committed to improvement. We build on good ideas, learn from our mistakes and challenge thestatus quo. We think outside of the box and have a desire to succeed and add value to our work.
Deliver ResultsWe have a clear vision of where were going and the plan to get there. We focus our resources to achieve our
objectives. We pay attention to detail and keep our commitments. We deliver results.
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BARRICK 3-STEP PROBLEM SOLVING
Keyactivities
Define the problem
and assign teamConduct criticalanalyses to identifyvital few issues Build draft value-driver tree and
identify KPIsCommunicateapproachand Phase 1findings
Diagnoseopportunity/set goals
Step 1
Generate ideas for
improvement Existing ideas Brainstorming Specific tools
(e.g., lean) Stand-alone
initiatives
Prioritize ideas Action Go -doideasPrepare case for ideas requiringapproval
Generate andevaluate ideas
Step 2Plan
implementation
Prepare action
plans Key activities/
milestones Targets on top and
front-line KPIs
Set up targetcontrol sheetsaround KPIsImplement andreview progress Actions Impact
Step 3
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BARRICK CI PROJECT OVERVIEW MINE X
Key decision makers:Who needs to decide/act?
Major challenges/risksWhat specifically could get in the way of success?
Project boundaries/scopeWhat is the scope of the project?What is not under consideration or off-limits to theproblem solving efforts?
Criteria and measures for success$Cashflow impact: ______ Top-line KPI(s): ______ Current performance: ______ [units]
Target performance: ______ [units] Technical limit: ______ [ units] Percent of gap closed: ______ %(other measures?) ______
Time frame:Start date: _________ End of Phase 1: _________ End of Phase 2: _________
End of Phase 3: _________ Total duration: _________ weeks
Role:Team leader CI Coach
AnalystSupport 1Support 2
The problem to be solved:What is the specific problem being solved?What specific actions will solve the problem?What is the relative priority of this project vs. other initiatives on site?
Other business impacts:What else could be affected by this project (e.g. other KPIs, safety, environment)??
Name: ___________ ___________ ___________ ___________ ___________
Team compositionCommitment: _____% _____% _____% _____% _____%
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1-2 full-timeteam members
2-3 part-timeteam members
Analyst
Project leader
CI Coach
TYPICAL CI UNIT REVIEW TEAM
Knowledge of CI processExperienced in the use of CI tools and techniquesInfluences others tomake things happen
Formal leader in the area being reviewed, able tomake changes happenMotivated by the need for change
Good analytical skillsUnderstands site IS (e.g., accounting, MP5,purchasing)
Technically competent in field relevant to unit review(e.g., operators, mechanics, engineers)Motivated, not stuck in old way of doing things
Relevant skills to assist in brainstorming andimplementation (often specific experts in particular
areas)
Team role Desired skill set
100
100
50-100
100
As required
Time Commitment (%)
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TWO BASIC STEPS IN THE DIAGNOSTIC
Build basic fact base Identify major improvement levers/bottlenecks
Pareto charts Capacity balance
1) Structure and focus the problem
Further breakdown losses into sub-components
Drive to root causes Build draft value driver tree and identify KPIs
2) Dig into the vital few sub -issues
The vital few issues and their causes, that whenresolved, will meet the project improvement target!
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BUILD BASIC FACT BASE
2001/2002 budget performance andbreakdown by key cost component
Historical operating performance
Average and best performanceday/week (e.g., TPH, Cost, Feetadvance)
Equipment kit/fleet performance
Capacities Cycle times
Other, as required
Tailor to needsof theparticular project
Usehypotheses tofocus effortson whereimprovementslie
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BASIC COST STATISTICS ROASTER
19
14
13
9
74
5
29
May 2001 YTD cost breakdown (%)
Electricity
Maintenancerelated*
Lime
Propane
Contract Services
49% Grind29% O
25% Off gas5% CIL2% Crush10% Other
Labor
Other reagents
Others
100% = $58 million (annualized)Cost per ton processed ($)
Annualized May 2001 YTD cost base used as baseline for
diagnostic
12.46 12.5813.45
16.00
Design 2000 actual 2001 budget May 2001 YTD
GOLDSTRIKE EXAMPLE
TotalCosts 38.7 59.4 58.0
Tons(millions) 3.1 4.6 4.2
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PARETO CHARTS BETZE-POST PIT SHOVELS
$0
$50
$100
$150
$200
$250
$300
$350
Replace TrackSet
Drive Tumblers Front Idlers Track PinCampaign
Track Repairs Track Frame
Failures
A n n u a
l C o
s Lost production
Labor costs
Parts costs
Top 2 categories accountfor ~ 70% of total
cost
P&H Shovel total downtime costs by component
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0
5
10
15
20
25
30
35
S c h .
M a i n t
/ R e l i n
e s
U n s c
h . R e
t o r q u
e
0 0 3 C
o n v .
S A G D i s .
P m p .
& L i n e
s
B r o k
e n S A
G L i n e
r s
A / C S t a n
d b y
T h c k
. P m p
. & L i n e
s
S e r v i
c e s
S A G
L u b e
S y s .
S c h .
R e t o r
q u e
C h i p
S c r e e
n
C y c l o
n e s
L C I
B a l l M
i l l s O t
h e r
# O f O c c u r r e n c e s
PARETO CHARTS GOLDSTRIKE MILL #1
Mill 1 Down Occurrences
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256 250
145 145
190 200
160145
160185
160 150 141
171
Tons per operating hour
PotentialConstraint
Areas
Existing pump and conveyor motors can be upgraded toaccommodate an increase in throughput
Actual = 124
CAPACITY BALANCE: BULYANHULU PROCESS PLAN
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Availability rate
OEE = Availability Rate X Performance Rate X Quality Rate
How much time per shift was the machineactually running?
How well did themachine perform(compared to the
rated speed) when itwas actually running?
How many productswere good the firsttime?
OEE is derived from three factors:
DEFINE TECHNICAL LIMITS WHAT IS OEE?
Performance rate Quality rate
x x
Examplelosses
UnscheduleddowntimeNot scheduled to workScheduled, no place toworkNo operator
Operating belowmaximum safespeedRamp-up, ramp-down due to minor stoppages
Low load factor,spillageExcess dilutionMis-aligned drilling
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The three primary factors of OEE are typically influenced by 6 key losses
Downtimelosses
1 Set-ups/changeovers
6 Scrap and rework
4 Idling and minor stoppages
Speedlosses
Qualitylosses
Availability
Performance
Quality
DEFINE TECHNICAL LIMITS SIX BIG LOSSES OF MACHINE TIME
Breakdowns/failures 2
Reduced speed3
Start-up/slow-downquality losses5
DEFINE TECHNICAL LIMITSOVERALL EQUIPMENT
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Availability ratio X Performance ratio X Quality ratio = OEE
Openingtime
Setups/changeovers
Break-downs
failures
Availabletime
Reducedspeed
Idlingand minor
stoppages
Operatingtime
Startup/slow
downquality
Scrapand
rework
Productiontime
= =
50
=
1 2 3 4 6
Typicaldrivers
Product mixChangeover speedSetup
procedures
Low reliabilityMaintenancepractices
ToolqualityEquipmentreliability
Operatingpractices
CrewingRepair timeEquipmentadjustment
Procedures/standardsTrainingEquipment
limits
TrainingToolconditionRaw
materialquality
DEFINE TECHNICAL LIMITS OVERALL EQUIPMENTEFFECTIVENESS (OEE) GRAPHICAL REPRESENTATION
5
ILLUSTRATIVE
PUTTING IT ALL TOGETHER
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PUTTING IT ALL TOGETHER UNDERGROUND EXAMPLE
24 24 24
Bolter Mucker
41%
18%
37%
Current fleetPerformance(Rounds per day)
Hours per day (hours)
Bolter
Amount of equipment in fleet
Fleet Time-based OEEPercent of hours spent operating*
Individual equipment cycle time Average hours per operating cycle
Drill Mucker
7.9 7.28.9
Bolter Drill Mucker
5.06.0
2.5
Bolter Drill Mucker
Bolter Drill Mucker
Drill
6.23.6 2.5
70% 50% 70%
13.620.0 16.8
OEE can be splitinto itscomponents
Time Speed Quality
Here, we couldhave split out thecycle time (speed)OEE to identifylosses in cycle
X
X
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BOLTER FLEET TIME-BASED OEEaverage hours per equipment per shift*
4%4%
5%
2%
40%
62%
85%
22%
3%
7%
100%
12%
92%
100% = 2200 hours
Idle timeDowntimeTwo itemsaccount for over 1/3 of
lost time
Possible solutionfocus:
T o t al H o ur s
B l a s t i n g / S h i f t
C h an g e
Wi n d ow
H oi s t / en d of
S h i f t
1 1 H
o ur S h i f t
Un-K n own
T o t al
C ol l e c t e d
D own
A v ai l a b l e
G e t t i n g
t o / L e av i n g
E q ui pm en t
T r ammi n g
S u p pl i e s
I d l e O p er a t i n g
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BOLTING IDLE TIME BREAKDOWN
Percent of fleet idle time
8%
8%
5%5%
3% 1%
10%
16%
9%
100%
34%
100% = 290 hours
Possible SolutionFocus:CommunicationsContingencydecision makingTop three itemsaccount for ~ 60%of total
T o t al
N oP l a c e
t oB ol t
R e- a s s i gn e d
T a s k
S e t - u p , S c al e ,
P a p er -w or k
V en t i l a t i on
W ai t i n g t o b e
m u c k e d
Unk n own
C omm
uni c a t i on s
Mi s c .
S er v i c eM
a c h i n e
E l e c t r i c al
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12%
10%
5%
4% 3% 1%
58%
7%
100%
BOLTING DOWNTIME BREAKDOWN
Percent of fleet down time*
100% = 538 hours
Brakes 20%Feed chain 20%Feed rail 20%Steering 15%Hydraulic 10%
Bolts 10%Other 5%
Possible solutionfocus:Design out/eliminate failuresin key items
Identify keybreakdownindicators (e.g.brake vibration) take preventativeaction beforeoccurrence
Reduce timewaiting for mechanic for smallfixes
Rough breakdown fromdown sheets
T o t al
I n S h o pM
a j or
R e p ai r
P ar t i al D own
D ur i n g S h i f t
H y d r a ul i c
Dr i f t er
E l e c t r i c al
D ownf or P M
Unk n own
Mi s c .
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5 WHYS A TOOL TO IDENTIFY ROOT CAUSES
Why No. 1
Why No. 2
Why No. 3
Why No. 4
Why No. 5
Old and newparts mixed
AccountabilityNo parts
available
PMs notdeep enough
Poor PMcompliance
No parts room5S program
Poor trainingNoaccountability
No set-upprocedures
Broken oillines
Nonfunctionaloilers Lack of skill
Nostandardization
Poor lubrication Old parts Incorrectsetup
Incorrectalignment
Out of alignment
Worn parts
No post set-up
documentation
Root Cause5-Why AnalysisMANUFACTURING EXAMPLE
FISHBONE ANALYSIS
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FISHBONE ANALYSIS ANOTHER TOOL TO IDENTIFY ROOT CAUSES
MAN METHOD
Lack of urgency
Poor training PMs notupdated
No root-causeanalysis
No auditing of processesNot
repairing
problemswhenneeded
Account-ability
No set-up
standards Overall lack of proceduresPMs compliance
lowCylinder rebuildfailures
Alignment
Shaft
Gears
Housing
Poor toolingdesign
Worn out metal
Oldcoolant
Damagedparts
End of coil issues
MATERIALMACHINE
MANUFACTURING EXAMPLE
TRANSLATE DIAGNOSTIC RESULTS INTO VALUE
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TRANSLATE DIAGNOSTIC RESULTS INTO VALUEDRIVER TREEUnderground development value driver tree - example
Metersdeveloped
Meters per day
Operatingdays
M/round
Roundsshot/day
Bolter cycle time
# of RoundsBolted
# Drilledfaces
AvailableBoltingtime
AvailableShift time
# Bolters
Missed Drillrounds
X
% Blasted
Potential Front-line KPIs# moves/shift# Brake failures# hydraulic hose failuresBreakdown response time. . .
X
X
_
X
X
X
Bolter Time-OEE
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VALUE DRIVER EXERCISE JOES DINER
Divide up in groups of 3-4Build a value driver tree for the profitability of Joes Diner using starting point below Determine no more than 5 KPIs that would beeffective in helping Joe improve his profits
Joes Diner profitability
Customer contribution
Fixed costs
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JOES VALUE DRIVER TREE ONE SOLUTIONPossible KPIs
# customers/seat (seat turns)Waste %
Price/platePlates/customer # Customers/server (server productivity)Square feet
Joesprofits
Customer contribution
Fixedcosts
# Customers
Customers/day
# Seats
# Customers/seat
Contribution/customer
Food profit/customer
Kitchen&servicecost/customer
Kitchen costs/customer
Service costs/
customer
$/server
# Customers/server Rent
$/square foot
Squarefootage
Management/administration
Utilities
Advertising
Days open
# Customers/seat
#Servers/seat
Kitchen costs
# customers
Days open
$/day
Food profit/plate
#plates/customer
Price/plate
True food
cost/plate
Standard foodcost/plate
1- waste %
_
x
_
X
X
+
+
+
x
x
x
x
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WHAT YOU GET DIAGNOSTIC END-PRODUCT
Clear view of the 3-5 issues that needto be resolved first the vital fewfocal points for idea generation
Issues specific enough to begin
identifying actionable solutions (vs.more issues)
Confidence that solving the vital fewwill exceed the target
Agreement with key projectsponsors/mine managers on priorities
Absolutely criticalfor a successfulstep 2
There is atendency to
cheat step 1
Cheating leads to: Solving
symptoms vs.causes
Wasted time,frustration
Missing your targets