Transcript Business Excellence through SHE Excellence

Human Factors
In the Control of
Major Hazards
“Business Excellence
through
SHE Excellence?”
Hansjürgen Labudde, DuPont
PRISM Seminar, Athens, 4th / 5th September 2003
Page 1
A little bit of history
E. I. du Pont de Nemours
1802
Page 2
Early DuPont powder mill,
Wilmington, Delaware – 1865
What you might know
about DuPont

Worldwide benchmark for industrial
SHE

$24 Billion in revenue

79,000 employees operating in 70
countries on 6 continents

5 core business segments including
DuPont Safety & Protection
Page 3
DuPont in Europe, Middle East & Africa 2002
Page 4

Sales:
$ 6.31 billion

ATOI:
$ 727 million

Employees:
18,200

Approx 66% of European sales are
produced, refined or manufactured
in the region.
DuPont locations in the region
Plants
R&D/Technical
Service Centres
Offices
Joint ventures
Page 5
DuPont’s core values
Ethics
Fair
treatment
of people
Page 6
Safety,
Health and
Environment
(SHE)
Business Excellence
through
SHE Excellence?
A Shift in Beliefs
Page 8
Shifting a Belief:
Things go wrong,
accidents happen.
Safety performance
can be managed.
Drive towards excellence!
Zero injuries
Zero spills.
Zero wrong financial transactions.
Zero …..
Page 9
Shifting a Belief:
Fatalities and
serious injuries are
investigated
because it is
required by law.
All accidents and
incidents are
investigated
because we want to
learn.
Understand root causes!
Of accidents.
Of productivity problems.
Of complaints.
Of …..
Page 10
Shifting a Belief:
Safety performance
is a question of
luck.
Safety performance
can be managed.
From reaction to prevention!
Initiative
Operational discipline
Personal responsibility
…..
Page 11
Shifting a Belief:
Employees must be
supervised so that
they comply.
Employees must be
educated and
empowered so that
they perform.
Focus on people!
Lean organization.
Tap the capabilities of all employees.
Empower people.
…..
Page 12
Developing an Organization:
Natural Instincts
Where do you want to be?
 How fast do you want to get there?

Injury
Rates
Failures
to
perform
Reactive
Errors
Supervision
Self
Dependent
Teams
Independent
Interdependent
• Management
Commitment
• Condition of
Employment
• Fear/Discipline
• Rules/Procedures
• Supervisor
Control, Emphasis,
and Goals
• Value All People
• Training
Page 13
• Personal Knowledge,
Commitment, and
Standards
• Internalization
• Personal Value
• Care for Self
• Practice, Habits
• Individual Recognition
•
•
•
•
•
Help Others Conform
Others’ Keeper
Networking Contributor
Care for Others
Organizational Pride
The employee is in the focus
Page 14

Active

Informed

Aware about company goals

Responsible

Decisive

Self-confident

Independent

Team oriented
Business Excellence
through
PSM Excellence?
A Shift in Structures
& Behaviors
Page 15
Page 16
The DuPont Approach
to Managing Process Safety

Page 17
Four Key Steps:
1.
Establishing a Safety Culture
2.
Providing Management Leadership and
Commitment
3.
Implementing a comprehensive PSRM
program
4.
Achieving Operating Excellence through
Operational Discipline
“ WHAT GETS MEASURED;
GETS DONE”
ZERO PROCESS INCIDENTS
LEADING INDICATOR METRICS
Page 18
ZERO PROCESS INCIDENTS LEADING
INDICATOR METRICS

Page 19
Purpose:

Metrics are necessary to audit and continuously
improve PSM

`Leading Indicators´ are beneficial in assessing
the effectiveness of existing PSM programs and
identification of trends in performance

Metrics in themselves will not achieve excellence,
but do provide a “window” through which
management can see the effectiveness of their
systems
Page 20
Auditing

PRINCIPLE

Auditing provides a measurement of compliance with
the established PSRM program. Field observations
yield data for determining performance against
established standards.
Page 21
Auditing

Features
 All 15 elements of PSRM program periodically audited
 Checklists used and documents evaluated
 1000 points are allocated in total to the elements
(weighted)
 Each question in the checklist must be addressed
 The team must make a determination of the degree of
compliance with the requirements of each question
 If a checklist question is scored less than 100%, then
a recommendation must be written to achieve 100%
in future
STD
Page 22
Score
Global PSM 2nd Party Audit Scores
(HHP’s)
1992- 2002
“The purpose of SHE 2nd party audits is to determine whether
appropriate management systems and controls are in place to effect
compliance with corporate policies, standards, and applicable laws
and regulations to continually improve SHE performance” (S2Y)
March 2003
Page 23
PSM 2nd Party Audits - Average Scores 1992-2002
Number of Audits
High Score
Low Score
Average
1992
10
87
64
75
1993 1994
17
22
93
91
59
67
81
82
1995
31
96
65
84
1996 1997 1998
35
38
37
96
96
97
60
54
65
85
86
86
1999
41
98
68
89
2000 2001
59
56
97
97
43
55
86
89
1H
2002
19
97
62
90
Management
Process Tech
PHA
71
83
73
79
87
77
76
85
80
84
82
81
82
85
85
85
86
86
86
83
85
87
89
89
85
84
84
88
87
90
91
87
90
MOC - Tech
Oper Procedures
Tng & Performance
78
80
74
77
87
85
82
80
85
79
85
91
84
85
89
86
88
91
82
85
90
90
88
91
89
83
87
91
88
91
88
93
93
Contractor Safety
MOC - Pers
Incident Invest
93
55
84
96
71
86
90
69
85
90
73
87
85
78
89
88
81
92
92
79
89
95
82
92
93
81
85
94
86
92
95
90
95
Emergency Response
PSM Auditing
Quality Assurance
83
60
90
86
61
85
88
69
85
90
74
90
87
71
87
90
79
91
92
77
91
93
83
88
88
83
88
90
88
89
92
87
95
Mechanical Integrity
63
Mgmt of Subtle Change 65
Pre-Startup Review
72
71
82
81
74
78
81
85
80
84
84
86
86
84
86
85
85
84
87
85
92
89
81
86
91
85
87
91
85
93
91
Page 24
Page 25
Incident Investigation

PRINCIPLE

Serious and serious potential incidents are likely
to recur unless key factors are identified and
corrected. Aggressive and persistent investigation
of all serious and serious potential incidents is
necessary to continuously improve safety
performance.
Page 26
Why Spend Time Investigating?
Page 27

Prevent recurrence

Share findings with others

Identify related problems

Guide development of standards
Corporate Investigation Standards
 S 3Y
Incident Investigation
 S 8Y
Process, Fire, Distribution and
Environmental Incident
Classification and Reporting
 S 35G Managing Occupational Injuries
and Illnesses
Incident
Page 28
To Prevent Recurrence ? Metrics ?
 Root cause – contributing factors
 PSM elements which need strengthening
 Closure of recommendations
 Effectiveness verification of implemented
recommendations
 Frequent analysis of contributing factors
Incident
Page 29
Analysis
Page 30
Other PSM Metrics and Indicators

PSM leading metrics must be a highly visible focal
point on a continuous basis

Strong systems and processes combined with
information technology are a key means to sustain
focus in times of change

Incidents are also important inputs, but are not
viable in terms of preventing low probability
significant events to ensure we don’t get
complacent
Success and good performance (no incidents)
are the enemy of continuous improvement
Page 31
Process Safety Metrics/Indicators
Element
Process Technology
Process Hazards Analysis
Operating Procedures and
Safe Work Practices
Management of Change
Technology and Subtle
change
Training and Performance
Mechanical Integrity/QA
Incident Investigations
Prestartup Safety Reviews
Contractor Safety
Management of Change –
Personnel
Auditing
Emergency Response
Page 32
Key Metrics
Number of SOC’s and P&ID’s up to date/revised vs schedule
Review and revision of technical standards per schedule
Cyclic PHA’s completed vs schedule (overdue)
PHA recommendations (open/overdue)
PHA employee communications completed
Number OI’s reviewed/revised (3 yr cycle) overdue
# OI’s certified annually
Audit results and trends involving safe work practices (confined
space, work permits, hot work, first breaks)
Number of TA’s/CA’s open and overdue (closing reports)
Number of TA/CA recommendations (open/overdue)
Number of temporary changes open past duration limit
Results and trends of Work Order audits on subtle change
Number of Skill demonstrations/Job Cycle checks completed and
overdue per schedule
# Operators formally requalified every 3 years (overdue)
PRISM/TRAQS modules completed/overdue (PSM related
Materials only)
Number of Tests and Inspections completed /overdue
Number of Tests and Inspections extended
Open Work orders for Process related applications (trends)
Maintenance procedures reviewed/revised (overdue)
Mechanical training and skill demonstrations/job cycle checks
Completed and overdue per schedule
# Mechanical formally requalified every 3 years (overdue)
# RV’s and rupture discs that fail in service
# RV’s that fail bench test examination
Incident investigation reports completed/issued per site timing
Requirements (typically 15 –30 days)
# open and overdue incident recommendations
# PSSR reports and recommendations open and overdue
st
# contractor 1 party field audits conducted vs schedule
(overdue)
# MOC- P competancy demonstrations completed for new
resources in 90 days ( overdue)
Trends in years of experience in operating organization
st
# 1 party PSM audits completed versus schedule (overdue)
st
# 1 party PSM audit recommendations open and overdue
nd
# 2 party PSM audit recommendations open and overdue
# Emergency response drills completed vs schedule (overdue)
# ER Critique recommendations open and overdue
Recommendations
Open /Overdue
Life Example of a DuPont Site
Page 33
Safe Working Environment - June 2003
Safe Working Index by month
Elapsed Time between Incidents
Page 34
Incidents by Severity
Operational Discipline:
rigour, focus in upgrading systems - June 2003
System Audits and Reviews completed
(SHE, PHR, Incident Investigations, 2nd Party, What If’s)
Recommendations Outstanding >90
Days
Page 35
Recommendations Outstanding >365 Days
PSM Metrics - June 2003
PSSR "B" items incomplete after 3 months
120
180
160
100
140
80
120
100
60
80
40
60
40
20
20
0
Kevlar
Ju
ne
ay
M
Ap
ril
ar
ch
M
ry
Fe
br
ua
ry
Ja
nu
a
be
r
be
r
Lycra
De
ce
m
No
ve
m
O
ct
ob
er
t
be
r
Se
pt
em
Au
gu
s
Ju
ly
0
Total
Target 2003: 0
PHA cycle time
TA reports overdue (>6 mths after close-out)
120
1
100
0,8
80
0,6
60
0,4
40
0,2
20
0
Lycra
Target: 6 months
Page 36
Kevlar
ay
M
Ap
ril
ar
ch
M
Fe
br
ua
ry
ry
be
r
Ja
nu
a
Lycra projected
De
ce
m
Kevlar
No
ve
m
Lycra
be
r
0
O
ct
ob
er
May
be
r
April
t
March
Se
pt
em
February
Au
gu
s
January
Ju
ly
December
Ju
ne
November
Total
Target: all currently overdue closed by June and maximum of 10 thereafter
PSM Metrics
Beyond significant PSM incidents and audit scores …
How is your site leadership using PSM metrics to drive
performance and improvement - is it working ; if not, why ?
What, if any, key PSM metrics are routinely reviewed at the SBU
or regional level to evaluate performance and drive strategy ?
How are you personally using metrics and audit results/ trends
to ensure effectiveness of PSM systems as a PSM Leader ?
What should we do that is additive or different to sharpen our
focus on performance (vs systems) ?
Page 37
CONCLUSION
Good Safety
Page 38
=
Good Business
Last Thoughts
DuPont Strategy - Sustainable growth through
productivity, integrated science and knowledge intensity
growth / change + human beings = transition
 Excellence in Process safety management is a key and unwavering part of our
SHE commitment and a fundamental tenet of our operating philosophy.
 We must ensure that we stay focused on PSM through periods of business
and organizational change, including personal accountability by all leaders
 We also must continue to improve leveraging our knowledge and experience
internally for broader benefit
 Ongoing success can only be attained by applying a rigorous operating
discipline to our process safety applications
 Data management tools and Six Sigma methodologies are important pieces
in our arsenal to help our businesses improve and sustain PSM performance
Page 39
Danke schön
Thank you
Page 40