Barrick SME (Mar 2011)
description
Transcript of Barrick SME (Mar 2011)
Transformation Towards A Continuous Improvement Culture
Trevor Krawchyk, Business Improvement Specialist
March 2011 – SME Denver
Today’s Presentation
Barrick’s Culture of Continuous Improvement:
• Why and how we started
• Our implementation strategy
• The critical success factors
• Summary
• Q&A
About Barrick
• Gold Industry Leader
• 20,000+ Employees
• 25 Operating Mines
• One of Canada’s Largest Companies
Background: Change needed?
“It is not necessary to change. Survival is not mandatory.”
Dr. Deming
Barrick’s opportunity (need) for change!
2002 State:
• Low gold prices
• Tight margins
• Rising costs
• Poor equipment effectiveness (OEE)
Background: Benchmarked The Best
Two common themes:
1. Formal CI System
2. CI Culture
Dimensions of CI at Barrick
FOCUS ONVALUE
CREATION
CULTURE OFCONTINUOUSIMPROVEMENT
“Get results, change the culture along the way”
Barrick’s CI Launch - 2002
• Top down support
• Operations focused
• Quick, high impact improvement at Goldstrike property (pilot)
• Expanded to all 9 sites (now 25)
“Get results, change the
culture along the way”
Barrick Vision and Values
To be the world’s best gold company by finding, acquiring, developing and producing quality reserves in
a safe, profitable and socially responsible manner.
BEHAVE LIKE AN OWNER
ACT WITH A SENSE OF URGENCY
BE A TEAM PLAYER
CONTINUOUSLY IMPROVE
DELIVER RESULTS
Vision:
Barrick CI Vision
“Everyone Engaged in Improvement Every Day”
Barrick CI – Critical Success Factors
1. Leadership
2. Focus on Process
3. Measurement
4. People & Teamwork
5. Communication and Visibility
Barrick CI – Critical Success Factors
1. Leadership
• Sustained Commitment from the Senior Leadership
• Highly focused on long-term benefits
• Included in Personal Performance Commitments
• Full-time dedicated global BI Team
Barrick CI – Critical Success Factors
2. Focus on Process:
• Extensive use of all applicable lean/CI tools
• Operations Review Teams (ORT’s) embedded in business cycle (PDR or PDCA)
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Talent Review
ORT / Site gap analysis
Strategic Planning
Budget
Performance Commitments
Tactical Plan
Execution
PLAN
PLAN
PLAN
PLAN
REVIEW
REVIEW
Barrick Business Management Cycle
DO
1. Review
(Assessment)
Objectives
• Current state
• Opportunity
Identification
2. Plan
(Site Visit)
Objectives
• Leadership support and
commitment
• Design solutions
“Go to Gemba”
3. Do(Execute)
Objectives
• Develop & execute action
plans
• Monthly Follow-up
ORT Process
Barrick CI – Critical Success Factors
3. Measurement• Focus on Metrics and KPI’s
• Track the value creation (waste reduction)
• The Culture Scorecard – yes, you can measure culture
Barrick CI Value Creation
2003 2004 2005 2006 2007 2008 2009 2010
Va
lue
Cre
ati
on
Quality Cost Throughput Total
(Illustrative)
Barrick Culture Scorecard
ElementsCurrent
Score
12 month
Target Key Themes To Close Gaps
Vision & Values 1.8 2.5
Business Strategy and Value Streams 2.0 2.3
Standardized Processes 0.7 2.3
Culture of CI 2.0 2.0
Foundation Total 1.6 2.3
Recruited for Fit 1.7 2.3
Employee Performance and Development 1.4 2.4
Talent Management 1.8 2.3
People and Leadership Total 1.6 2.3
Clear Targets and Goals 1.3 2.0
Visual Workplace 1.0 2.0
Regular Structured Reviews (Plan-Do-Review) 2.0 2.5
Workplace Organization (5S) 1.0 3.0
Organization Structured for Performance 1.3 2.0
Business Performance Management Total 1.2 2.5
Employee Involvement and Problem Solving 1.4 2.3
Knowledge Sharing 1.0 2.0
CI Resources/Support 1.0 3.0
Learning & Knowledge Sharing Total 1.3 2.4
Corporate Social Responsibility 0.8 1.8
Sustainable Community Development 0.3 1.0Suppliers, Vendors, Contractors & Consultants 1.3 2.3
External Relationship Management Total 0.8 1.7
Overall Score 1.3 2.2
Business
Performance
Management
Learning &
Knowledge Sharing
External Relationship
Management
Sections
Foundation
People & Leadership
Barrick Cultural Measurement Framework
Major gaps in
basic planning
and operating
standards
(CHAOS)
TimeStrong leaders
making big,
often tough,
changes
(PUSH)
Focused initiatives
in structured
process to deliver
high impact
(DEPENDENT)
Enterprise-wide CI
culture
(INDEPENDENT)
Results
S0
S1
S2
S3
Not happening
Getting started,
limited results
Strong results in
critical areas
Everyone
Engaged In CI
Barrick CI – Culture vs. Value Creation?
Higher Culture Score = Greater Value Creation
Value Creation and Culture
1.9
1.5
1.11.0
Region A Region B Region C Region D
-
0.5
1.0
1.5
2.0
2.5
3.0
Cu
ltu
re S
co
re
Target Actual Culture score
Va
lue
Cre
ati
on
Barrick CI – Critical Success Factors
4. People & Teamwork• Employee Engagement & Involvement
• Employees given accountability for results
• Willingness to take chances & challenge the status quo
• “CI Awards” - Recognition and Reward
Barrick CI Awards
Recognize and reward employees for improvements made during the year in the following 4 categories:
1. Employee involvement and participation
2. Idea generation / innovation
3. Achievement of significant results
4. Knowledge seeking and application
Barrick CI – Critical Success Factors
5. Communication and Visibility
• Create formal systems
• Establish Best Practices
• Share success
(it’s contagious!)
Continuous Improvemen
t Pocket Guide
First Edition
Continuous Improvemen
t Pocket Guide
First Edition
Continuous Improvement Handbook
Our Current Business Environment
• Volatile economic forces
• Fluctuating Gold Prices
(+/- 15% in 1 month)
• Inflationary cost pressures
• Labour & commodity shortages
Summary
2 Dimensions• Value Creation• Culture
Critical Success Factors• Leadership Commitment • Focus on Process• Measurement• Communication and Visibility• People and Teamwork
Thank You