Transcript Business Case for IS-BAO International Standard for

Safety Management
Systems/ISBAO
Dan Brunskole, President
Jim Zawrotny, TBAG Consultant
The Brunskole Aviation Group, TBAG
Who is IBAC?
 International Non-Government, Non-profit, Council
representing 14 member Associations (NBAA largest)
 Conduct safety studies/provide statistics
 Represent business aviation at ICAO
 Manage the IS-BAO Program
1
What is IS-BAO?
 Professional code of practice
 World-wide industry standard
 Developed by the industry for the industry
 Based on ISO 9000 principles, tailored for aviation
 Provides tools for risk analysis and self-directed risk
management
 Fits all sizes & missions, aircraft types
 Foundation is a Safety Management System (SMS)
2
What is a SMS?
 Proactive management of safety risks
 Systematic process
 Comprehensive process
 Integrates operations, maintenance, finance and human
resources
3
SMS is Evolutionary Development of Safety
 1950s-70s: High accident rate- Solution Technology
– Jet engines
– Weather radar
 70s-80’s: Declining accident rate- Quality Management
and Human factors
– Simulator training
– CRM
 Now—Flat accident rate - Recognition that accidents are
organizational– Safety Culture/ Safety Management Systems
4
What Causes Accidents?
Most accidents are
“organizational” in nature:
 Latent conditions
 Combine with or cause active
failures
– Errors or violations committed
by the system’s operators
 And produce an accident
5
Precursors to an Accident:
6
Defenses against an Accident:
Accident
Defences
Unsafe Acts
Preconditions
Window
of Opportunity
Line Management
Decision Makers
Unsafe Acts
and Latent
Unsafe Conditions
- James Reason’s MODEL
7
Accident
8
Terms:
 Hazard-The condition or circumstance that can lead to
physical injury or damage
 Risk-The consequence of a hazard measured in terms of
likelihood and severity
 Mitigation-The measures taken to-
– Eliminate a hazard
– Reduce the likelihood
– Reduce the severity of a risk
9
Hazards, Risks, Mitigations
10
Safety Management System
A process to manage the hazards and associated safetyrisks inherent in an individual operation
11
SMS Formula
 Identify hazards to YOUR operation
 Assess and measure YOUR safety risks
 Mitigate to eliminate hazards or reduce risks
 Track mitigations to ensure they are APPROPRIATE AND
EFFECTIVE
 Modify mitigations as required
12
IS-BAO/SMS provides a framework and structure
Checklist
Security Policy
Worksheets
Maint
Schedule
Insurance
Policy
Training
Ran
Ops
Manual
CAA
Reqs.
ERPs
Policy
Alcohol &
Drugs
Policy
HSE
Policy
Safety
Drills
JAR
MRM
No Structure
Process
Task
Structure
13
Why do a SMS?
 Safety and Security
 Teamwork
 Loss Prevention/ Accident Prevention
 Insurance and aircraft financing
 Stakeholder and customer confidence
 Due diligence
 Regulator confidence and regulatory compliance
14
Safety Analysis
 Studied 297 total and serious
business aircraft accidents
 Conclusions:
– IS-BAO could have certainly
or probably prevented 35 55%
ACCIDENT ANALYSIS, JET AND TURBOPROP BUSINESS AIRCRAFT 1998-2003, POTENTIAL IMPACT OF IS-BAO Robert Woodhouse, MRAeS, May 2006
15
Business Case: Cost of an Accident
Direct Losses
Indirect Losses
 physical damage to the
 loss of business
aircraft
 property damage
 personal injury
 loss of life
 legal claims
 damage to reputation / good will
 loss of key personnel / staff
 increased insurance premiums / future
insurability in question / loss exceeds insurance
limits
 loss of productivity (“actions” for defense)
 environmental impact
 loss of use of equipment (partially insured)
 punitive damages / fines / regulatory action
 costs of replacement equipment or supplemental
lift
 additional personnel costs, such as
 employee counselling
 recruitment and training
Goal: Loss prevention since an accident may incur significant losses!
16
Business Case: “Cost” of Minor Incident
Hangar rash on a Gulfstream IV…

Direct (40 day repair period)
– Physical Damage: $313,800

Indirect
– Loss of Use: $635,595 charters
– Lost Productivity: $17,300 for over 48
hours
– Outside Advisors*: $13,000
– Repair Oversight: $15,000 travel
expenses

Total Cost: $994,695

Insurance Paid: $470,700 or 47%
17
Business Case: “Cost” of Major Accident
“Teterboro Challenger 600 Crash Spawns Claims” ~AINonline
CREW
INJURY
BODILY INJURY
(LIABILITY-3rd PARTY)
PROPERTY DAMAGE
(LIABILITY-3rd PARTY)
CFR EXPENSE
HULL DAMAGE
CONSEQUENTIAL LOSSES PASSENGER BODILY INJURY
18
Business Case: “Cost” of Staff Injury
 Co-workers and supervisors lose time / productivity
tending to injured
 Distracted staff discuss injury during “break” times
 If serious, temporary staff needs training and / or overtime
necessary
 Lost time is not insured
19
Regulatory Compliance
– SMS PLUS COMPREHENSIVE STANDARDS: New
ICAO Annex 6 Part II requirements for non commercial
operators of turbojet airplanes, large airplanes, and
corporate operators (compliance date November 18,
2010)
 IS-BAO meets ICAO requirements
– SMS ONLY--ICAO requirement for SMS (Annex 6 Part
1) for commercial operators (January 1, 2009 deadline)
 Many States do not have rules in place
 Enforcement?
 FAA filed difference
20
Why do a SMS? Some thoughts….
 Risk ID through insurance
– Least effective as not all
risks are insurable
– Too narrow an approach
– May not leverage firm’s
culture, strengths
 Waiting for hazards to be
identified through
accidents?
– Do landings with no bent
metal prove ops are
safe?
– “Tombstone” mentality
– Accidents are fewlessons do not apply
across the board
21
More thoughts…
 Is your operation as
efficient and effective as it
can be?
– Defining processes/
linking to risks makes
operation more effective
and efficient
 Do you know you have…
– Trust of your
passengers?
– What is “value” of CEO
or key personnel?
– Trust of regulators?
– Do you meet regulatory
requirements?
22
New ICAO SMS Elements:
 Safety Policy and Objectives
 Safety Risk Management
 Safety Assurance
 Safety Promotion
23
Safety Policy and Objectives
 Management commitment and responsibility
 Safety accountabilities
 Appointment of key safety personnel
 Coordination of emergency response planning
 SMS documentation
24
Safety Risk Management
 Hazard identification
 Safety risk assessment and mitigation
25
Safety Assurance
 Safety performance monitoring and measurement
 The management of change
 Continuous improvement of the SMS
26
Safety Promotion
 Training and education
 Safety communication
27
Getting Started: 12 Steps to a SMS
1. Study the SMS concept
2. Obtain senior management commitment
3. Establish SMS team
4. Determine what you have and what you need
5. Conduct initial hazard identification and risk assessment,
and develop safety risk profile
6. Develop safety management strategy
28
Implementation, cont.
7. Identify safety accountabilities
8. Develop ongoing hazard identification and tracking
system and risk assessment procedures
9. Develop emergency preparedness plan
10. Amend programs, procedures and documents as
required
11. Conduct staff training and education
12. Track and evaluate safety management activities
29
Summary
 SMS is “new” way of thinking about safety
– What is my risk?
– Is it acceptable?
– If not, how do I mitigate the risk?
– How do I communicate/ implement these mitigations?
 Goal- Reduce risks ALARP and build a Just Culture /
Positive Safety Culture
 It works!!
30
For more information:
Jim Zawrotny, TBAG Consultant Jim.Zawrotny@
brunskoleaviationgroup.com
Dan Brunskole, President
[email protected]
Member Associations see www.ibac.org or your
Association website