3 step problem solving - step 1

7/28/2019 3 Step Problem Solving - Step 1

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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

3 step problem solving - step 1

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