joe rivas - greencap - improving business efficiency through operational risk management
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Joe Rivas delivered the presentation at the 2014 Safety in Action Conference Sydney. The 2014 SIA Sydney Safety Conference at Sydney Olympic Park featured a wide range of practical case studies directly from the organisations involved with developing their health, safety and wellness protocols. Learn from their experiences and take back techniques for the enhancement of your own WHS policy. For more information about the event, please visit: http://bit.ly/SIASydney14TRANSCRIPT
Improving Business Efficiency through Opera7onal Risk Management Joe Rivas Principal WHS Consultant
IMPROVING BUSINESS EFFICIENCY THROUGH OPERATIONAL RISK MANAGEMENT SEPTEMBER 2014
Agenda
Introduc7on
A Global Challenge
Global Strategic Approach
The Outcome
ARermath
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Introduc)on
IMPROVING BUSINESS EFFICIENCY THROUGH OPERATIONAL RISK MANAGEMENT SEPTEMBER 2014
Associated Bri)sh Foods plc
• Formed in 1935 • Owned by the Weston Family • Head Office in UK • Listed on the London Stock Exchange • Cons7tuent of FTSE 100 Index • Operate in more than 44 countries • Diversified interna7onal food processing, ingredients and retail group
• Over 97,000 employees • Sales turnover of £10.2b
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Associated Bri)sh Foods
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A Global Challenge
AB Mauri Group
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• Formed in Nov 2004 • Head Office in the UK • More than 52 loca)ons • Global family of yeast and bakery ingredient companies
• Over 6,000 employees • Sales turnover over £1.6b
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AB Mauri Group
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SWOT Analysis – Process & Criteria
Site(s) Country Region Global
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Internal Factors • Personnel • Processes • Product • Plant & Equipment • Finance • Manufacturing capabili7es
External Factors • Macroeconomic maeers • Technological changes • Legisla7on • Sociocultural changes • Changes in the marketplace • Changes in compe77ve posi7on
AB Mauri Group – Global SWOT Analysis
IMPROVING BUSINESS EFFICIENCY THROUGH OPERATIONAL RISK MANAGEMENT SEPTEMBER 2014
Strengths
• Global presence in bakers’ yeast with significant market posi7ons in the Americas, Europe and Asia
• Financial strength (2013 Sales £1.6B) • Successfully grown through its acquisi7on strategy -‐ Uniferm (Germany), Lievi7 (Italy) and new plants in Harbin (China) and Puebla (Mexico)
Opportuni)es
• Significant opportuni7es to expand into the emerging markets of China and India
• Yeast market is characterised by high degree of mergers and acquisi7ons, opportuni7es through targeted acquisi7ons
• Key to survival within yeast market is increasing efficiency and reducing cost
Weaknesses
• Lack of regional and global HSE leadership • No Strategic HSE Plan integrated into the Global Business Plan
• Poor HSE culture • Poor risk management • Poor management of emerging HSE challenges (na7onal and global)
• Lack of Key Performance Indicators
Threats
• Worldwide – Increasingly demanding cost environment for energy, water, raw material, transport, packaging
• Compe77ve pressures • Regulatory changes & heightened regulatory scru7ny affec7ng global strategic business objec7ves
• Bioterrorism aeack to the supply chain
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Global Strategic Approach
Dynamic Model of the Strategy Process
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Global SWOT Analysis AB Mauri Global Risk Strategy
STRENGTHS
MARK
ET NEEDS
CUSTOMER
VALU
E PR
OPO
STION
WEAKNESSES
OPPORTUNITIES
BUSINESS CONTINUITY MANAGEMENT
HEALTH & SAFETY
ENVIRONMENT
THREATS
CRISIS & EMERGENCY MANAGEMENT
CAPITAL ENGINEERING
FOOD SAFETY
Proa
ctiv
e H
SE A
ssur
ance
Pred
ictiv
e H
SE A
ssur
ance
Itera
tive
HSE
Ass
uran
ce
HSE
-orie
nted
des
ign
Best Pratice Tools
HSE Assurance
Rea
ctiv
e H
SE A
ssur
ance
Business Con)nuity Management • Business Con)nuity Plan's in place in each region to minimise disrup)on to product supply due to environmental/safety enforcement, fire, yeast infec)on/contamina)on, labour strike
• Business Con)nuity Plans tested in 12 strategic sites
Crisis & Emergency Management Crisis & Emergency Management Plan in place in each region to protect and prepare the sites for unexpected disrup)ons
Crisis & Emergency Management Plan tested in 12 strategic sites
Health & Safety • Global HSE Standards in place across all sites • Accurate repor)ng of HSE Performance across all regions and ra)fied by ERM
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Operational Risk Management Strategy
IMPROVING BUSINESS EFFICIENCY THROUGH OPERATIONAL RISK MANAGEMENT SEPTEMBER 2014
Environment • Priori)sed programs of environmental investment in Effluent Treatment Plants (ETP) required across all the regions
• Regional energy ini)a)ves in place in all the regions
Capital Projects Project Close Out Review (PCR) completed for ETPs, new and upgraded sites
Mechanism in place to share learnings from PCRs
Food Safety • Food Safety Management System in place in each region to demonstrate compliance, minimise risks and financial exposure resul)ng from manufacturing opera)ons
• Adop)on of Global GMP Standards in all the regions
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Operational Risk Management Strategy
IMPROVING BUSINESS EFFICIENCY THROUGH OPERATIONAL RISK MANAGEMENT SEPTEMBER 2014
Opera)onal Risk Management Plan
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Opera)onal Risk Management Plan
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The Outcome
2011/2012 HSE Performance Summary
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Acermath
What did we learn from this experience?
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Global strategy impacted by world economy
Global strategy impacted by market dynamics (country, regional) affec7ng global strategy
Increasingly strict regulatory HSE requirements
Con7nuous integra7on of Global Opera7onal Risk Management Plan into Global Yeast Business Plan
More integra7on among standards, e.g. ISO 9001, OHSAS 18001, ISO 14001, AS/NZS 4801, ISO 22000 Food Safety, ISO 50001 Energy Management
Commitment to op7mum HSE performance standards
More investment in local resources to increase HSE capability
Ques)ons?
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Contact: Joe Rivas
Email: [email protected]