Innovation using dynamic balanced scorecard design as an industrial safety management system in a company in the mining metallurgical sector

• Published in: Journal of open innovation 2024-09, Vol.10 (3), p.100362, Article 100362
• Main Authors: Mayo-Alvarez, Luis, Del-Aguila-Arcentales, Shyla, Alvarez-Risco, Aldo
• Format: Article
• Language: English
• Subjects: Balanced Scorecard (BSC); Dynamic balanced scorecard; Industrial safety; Soft Systems Methodology (SSM); System dynamics; Systemic Methodology to Develop and Maintain a Dynamic Balanced Scorecard (MSDBSC-EM)
• ISSN: 2199-8531; 2199-8531
• DOI: 10.1016/j.joitmc.2024.100362

Over the years, industrial safety management in Peru's metallurgical mining sector has become a business problem with no acceptable solution. Annual statistics reveal an average of 60–70 fatal accidents in companies in this sector. This paper proposes using the Systemic Methodology to Develop and Maintain a Dynamic Balanced Scorecard MSDBSC-EM) to be used in the industrial safety management of the safety department of a Peruvian company in the metallurgical mining sector. This methodology was created at the Instituto Andino de Sistemas - IAS of Peru and combines the criteria of the Balanced Scorecard with the modeling of System Dynamics and contributions of the Soft System Methodology. This proposal demonstrates that dynamic simulation facilitates organizational learning and allows the designing of action plans in the present to manage the future. Also, modeling and computer tools facilitate the development and implementation of prototypes, which can be used to analyze required scenarios through pleasant and easy-to-use environments. In this sense, a dynamic model of key performance indicators of objectives, goals and initiatives was developed and four scenarios (A, B, C and D) were analyzed, from which it can be observed that the degree of commitment and leadership with the Industrial safety affects the increase in the level of preventive culture, which in turn favors the prevention of risks and the achievement of tangible objectives in industrial safety, evident in the drastic decrease in the occurrence of accidents and occupational diseases, and this is achieved to the extent that the personnel have the necessary competencies, which in turn is obtained through constant comprehensive training and the appropriate selection of personnel. On the other hand, the operating budget of the security department is a limiting factor in achieving these criteria. Another important aspect is the degree of existing communication, which affects the increase in the level of preventive culture.