Transcript Slide 1

Safety, Health and
Environment Management
for Corporate Success
Why SH&E Management is
Important
S, H & E Mgmt. for Corp. Success
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Why is SH&E Mgmt. Important?
Examine Cases
– Poor SH&E Management
– Excellent SH&E Management
– Contrasts
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What is the Value to the Business?
– SH&E Mgmt. is Vital to Success
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Senior Manager/Executive Actions
– “Doing the Right Thing”
S, H & E Mgmt. for Corp. Success
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Why is SH&E Management Important?
– Individuals demand health and safety
• Unwilling to work if it presents unacceptable risk
– Customers demand health and safety
• Unwilling to pay for the cost of accidents, injuries
and damages
– Society demands healthy, safe
environmentally friendly services & products
• Unwilling to acquire products manufactured in a
way that exploits or harms people / environment
Case Study - ValuJet
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US Based discount Airline
Headquartered in Atlanta
Founded in late 1992
Grown rapidly and had 3,500
employees as of May 1996
Flying 51 planes to 31 cities in the
United States
Plans for further growth later in the
year (1996)
Case Study Valujet
ValuJet plane crashes in Everglades
May 11, 1996
Web posted at: 4:00 p.m. EDT
MIAMI, Florida (CNN) -- A ValuJet DC-9 carrying 109 people
from Miami to Atlanta crashed shortly after takeoff in the
Florida Everglades Saturday afternoon.
Rescue teams were still searching for the crash site.
There was no immediate confirmation of casualties, but
Lauren Gail, a spokesperson for Miami International
Airport said, "We don't believe there are any survivors."
The FAA confirmed the plane was carrying 104
passengers and 5 crew members.
Aerial pictures showed what appeared to be debris strewn
over a marshy region of the Everglades. The pictures
showed no signs of a fuselage or larger aircraft pieces.
Flight 592 was about 30 miles north of Miami International
Airport when it experienced a "problem in the cockpit,"
according to FAA spokesman Anthony Willett.
Case Study - ValuJet
News Briefs
July 3, 1996
Web posted at: 10:15 p.m. EDT
ValuJet files recovery plan with FAA
WASHINGTON (CNN) -- ValuJet submitted a plan to the FAA in Atlanta
on Wednesday, describing how the low-fare carrier will resume flights
with 15 planes. No details were available.
ValuJet had more than 50 DC-9s in service before one crashed May 11
in the Florida Everglades, killing all 110 people on board. The airline shut
down after a federal inspection found "several serious deficiencies" in its
operations.
Under a consent decree signed by ValuJet, the airline will pay the
Federal Aviation Administration $2 million to cover the cost of
inspections and enforcement of the order. The limit of 15 aircraft was a
condition of the decree.
Case Study - ValuJet
ValuJet struggles to balance safety, bottom-line
September 29, 1996
Web posted at: 9:20 p.m. EDT
From CNN Correspondent John Zarrella
MIAMI (CNN) -- Attorneys for the union representing ValuJet flight
attendants have gone to court in an effort to keep the discount airline out
of the skies.
"The airline wasn't safe in May and we don't believe it is safe today
unless the two top officers of the company are removed," said
Association of Flight Attendants General Counsel David Borer.
ValuJet officials said the company is altogether different since the May
11 crash in the Florida Everglades.
The Federal Aviation Administration has assigned seven inspectors to
oversee the airline's nine-plane startup. There were only three
inspectors when ValuJet was at full strength.
Case Study – Firestone & Explorer
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Ford Explorer a solid
performing vehicle
Ford engineers
provided specifications
Firestone Wilderness
AT tires were
manufactured to meet
the specifications
Steel belted tires are
highly engineered
products.
Case Study – Firestone & Explorer
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Ford Explorer’s equipped with
Firestone Wilderness AT tires
were involved in 79 out of 88
fatal rollover accidents
Treads separating from the
steel belts of the tires caused
these events
Tire pressure recommended by
Ford was 26 psi
Firestone recommended 30 psi
Ford specifications required
tires to meet the minimum heat
resistance rating (‘C’ rating).
The highest level of tread
separation came from tires
manufactured at the Firestone
Decatur facility.
Workers at the Decatur plant
have subsequently testified that
the focus was on meeting
production quotas.
Case Studies – Poor Performance
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Could these events have been
prevented?
What contributed to these fatal
accidents?
Did Senior Managers actions
contribute to these events?
Was safety valued?
Case Study – Manufacturer
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Established Corporate Principles
Employees Worldwide – 264,000
Management system that is recognized
world wide for effectiveness
Policy “Safety is management itself”
Consolidated Environment Mgmt. for
over 600 subsidiaries / facilities
Goal: “Zero Accidents”, “Zero
Emissions”
Case Study - Toyota
Case Study - Toyota
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Occupational Health
& Safety
– Objectives, targets
and measures
– Extensive training
– Inherent safety of
equipment based on
risk assessment
– Proactive prevention
– 6S production
Programmes to address
– Total preventative
identified risks and objectives
maintenance
Case Study - Toyota
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Environmental Management System
Case Study - Toyota
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Specific environmental objectives and targets
Measured and reported yearly results
Case Study - Toyota
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Leadership Team recognizes that safety and
environmental impact of the product is
significant!
Case Study - Toyota
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Leadership Team recognizes that safety and
environmental impact of the product is
significant!
Case Study - Toyota
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The focus on safety and environmental
performance results in profitability!
Toyota Motor Co. Net Income & LWFR
1,400,000
0.28
0.26
1,200,000
0.24
1,000,000
0.22
800,000
0.20
600,000
0.18
0.16
400,000
0.14
200,000
0.12
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0.10
1999
2000
Net Income
2001
2002
Safety LWFR
2003
2004
Trend (safety LWFR)
Case Study – Noble Corporation
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Noble Corporation
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84 years in operation
60 units world wide
5300 employees
R.W. Campbell award
for SH&E mgmt.
excellence
– 12 years of improving
safety performance
– Selected for the Dow
Jones Sustainability
Index
– Highest ever operating
revenues in 2004
Case Study – Noble Corporation
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R.W. Campbell Award Winner 2004 for SH&E Excellence
– Senior Management Commitment to HSEQ
• Weekly world-wide conference calls & quarterly safety meetings
• CEO Chaired SH&E Steering Committee
• SH&E Systems Investment – integrated into capital budgets
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ISO 9001 & 14001 Certification
International Safety Management Code
Lean Six Sigma
Rig Standardization Team
– Organizational SH&E - Focus
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Short Term Incentive Plan – Safety results accounting for 50%
“Right to Refuse Work” Policy
JSAs (Job Safety Analyses – hazard identification & control)
STOP Observations
Competency Assurance Program
– SH&E Performance Reporting
• Leading (NDOR, JSA, Observations, Audits)
• Lagging (LTI Rate, Emissions) Indicators
Noble Corp. - Safe and Profitable
Mid East
jackups
4 Units
$ Millions
3,600
Mid East
Semi upgrades jackups
Joint Ventures
3,000
2,400
Neddrill/
Other Int’l
1,200
GE/Bawden
2.5
2.0
EVA’s
1,800
3.0
1.5
Chiles
Transworld Western
1.0
600
0.5
0
0.0
Land/Barge Rigs Sale
Mat Rigs Sale
(600)
(0.5)
'85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03
Note: Replacement value of fleet was $6.3 billion per Jefferies’ November/December 2003 report
Case Study - Contrasts
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Excellent Performance
– Leadership Team identifies
SH&E as a business value /
principle
– Vision / Goal for SH&E
Performance
– SH&E risks are identified,
assessed & minimized
– SH&E objectives, targets,
measures
– SH&E programmes &
organization to manage risks
– Clear mgmt. responsibility &
accountability
– SH&E mgmt. system review
by Leadership Team
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Poor Performance
– Lack of Leadership Team
direction for SH&E an
element or factor
– Lack of Vision / Goal for
SH&E
– SH&E risks aren’t
effectively identified
– SH&E objectives poorly
defined / not challenging
– SH&E programmes don’t
address risks
– Mgmt. responsibility &
accountability is unclear
– Key SH&E mgmt. system
elements don’t exist
S, H & E Mgmt. for Corp. Success
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Value to Business
– Vital to entry & operation within the marketplace
– Improved productivity
– Loss control, SH&E Mgmt. closely related to
quality, business control & operational reliability
– Improved reputation
• Safe, environmentally friendly
– Creates mindset & value system to achieve
success
– Differentiated product or service
– Competitive edge
S, H & E Mgmt. for Corp. Success
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Senior Manager/Executive Actions
– Create your Vision for SH&E and document it in
a Business Policy / Principle statement.
– Assess your management system against
established and recognized standards such as
CSA/ISO 14001 and OHSAS 18001.
– Establish yearly objectives, targets and
measures to address SH&E gaps.
– Put appropriately resourced programs and
people into place to achieve the objectives.
– Review the management system’s effectiveness
at least annually
– Benchmark against leading organizations!
S, H & E Mgmt. for Corp. Success
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Personal Actions
– Communicate your Vision and set the tone for SH&E, set
standards and abide by them.
– Demonstrate exemplary safety behaviour and demand it of
your people.
– Talk to the workforce about company SH&E performance.
State company and industry-wide goals.
– Intervene and obtain assurance that work is proceeding in
accordance with safe work procedures and standards.
Encourage others (supervisors, managers) to intervene.
– Undertake to attend specified appropriate safety training.
– Be involved in the SH&E management system. Intervene to
assess how it works (e.g. be part of an audit or incident
investigation team).
– Initiate a cultural change (e.g. all meetings start by a
discussion of SH&E).
– Challenge the organization.
S, H & E Mgmt. for Corp. Success
SH&E Management
is
“Doing the Right Thing”
For People and
Corporate Success