Joe Rivas - Greencap - Improving business efficiency through Operational Risk Management

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

IMPROVING BUSINESS EFFICIENCY THROUGH OPERATIONAL RISK MANAGEMENT SEPTEMBER 2014 2

[NAME OF PRESENTATION] JULY 2014 3

Introduc)on


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



A Global Challenge

AB Mauri Group


•  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


SWOT Analysis – Process & Criteria

Site(s) Country Region Global


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


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


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


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


Opera)onal Risk Management Plan



The Outcome

2011/2012 HSE Performance Summary



Acermath

What did we learn from this experience?


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?


Contact: Joe Rivas

Email: [email protected]

Joe Rivas - Greencap - Improving business efficiency through Operational Risk Management

Leadership & Management

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