PRIMS SEMINAR 2003

“How to overcome the Barriers and to Improve Human Performance”

Peter Varga Regional HSE Manager [email protected]

31th October, Bratislava

Slovnaft and MOL Group in a nutshell

• SN: Refining and Petrochemical core business segments • Slovnaft-Mol Partnership program “ First step on the road to becoming a regional champion “ – Focus on value creation and realisation of synergies – Combined industry knowledge and financial strength – Leading position in CE – Operation Excellence – Changing Shareholders structure

Massage to stakeholders

Slovnaft has become the first oil and petrochemical company in CE to achieve Integrated Management System registration in accordance with ……

• Slovnaft management supports this Integrated registration because it is consistent with our commitment to integrate economic, environmental and social dimensions into everyday business conduct.

• Independent certification body SGS Slovakia, which certified the Slovnaft, is well-know global company focused on the field of certification, inspection and testing. SGS auditors audited functionality of quality management system, environmental management system and safety management system at the Production and Marketing division, Procurement and Warehousing unit and other relevant units.

HSE Report 2002

• the 2002 HSE performance is summarised in HSE report • this is in accordance with our Commitment „ ... to share information and openly communicate about our HSEQ management framework and the impact of our activities, products and services “

Highlights

• LTIF in Slovnaft, a.s.at 0,9 compared to 2,4 in 2001 • Fire brigade outsourcing • HSE integration at Production unit • no occupational illness - TROIF = 0 • amount of air emissions decreased by 12% • water consumption decreased by 18% • waste generation reduced by one quarter • number of fires increased by 7, to 12 cases • one contractor fatality

2002 LTIF one of the lowest in Slovnaft history

Low hanging fruits = QUICK WINS or …..

Learning Points of IMS (HSEQ)

Benefits of Integration

There is no one right integrated management system. Each organization needs to take its corporate culture and the nature of its business into consideration when deciding how far it wants to take the integration. However … • Simplified system resulting in less redundancy or conflict in documentation • Optimized resources (single sys. Vs. multiple sys. With same goals • Integrating H /S /E /Q objectives into the overall business strategy • Establishing a common framework for continual improvement of HSEQ

Implementation Procedures – What and How ?

• Build on what is already in place but also include new elements.

• Corporate HSEQ Management Framework • Corporate Annual HSE and Quality Objectives based on KPIs • Annual Letter from Subsidiaries and Divisions to President • Focus on proactive culture through » enhanced awareness » training » competence building » links to performance appraisal

What does it mean for me ?

• Grater clarity of the Policies which all Slovnaft employees must apply in order to make them • A part of every employee’s approach to business • A living part of the culture of every business units and subsidiaries at every level

DIRECTION

HSE Management System

Slovnaft Group´s commitment to H/S/E HSE Policy EXPECTATION HSEQ Management Framework Slovnaft Group HSE Core Process HSE Excellence Program Group HSE Goals Targets KPIs ACTION Manual, Guidelines

What to DO (Doing the right things)

Business unit´s (3P)

•

Policy

•

Process

•

Procedure

How to DO it (Doing things right)

Implementation -HSEQ Management System Framework

Plan Act

.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

Leadership and Accountability Risk Assessment and Management People, Training and Behavior Working with Contractors and Others Facilities Design and Construction Operations and Maintenance Management of Change Information and Documentation Customers and Products Community and Stakeholder Crisis and Emergency Management Incidents Analysis and Prevention Assessment, Assurance and Improvement Check Do

Reaching Six Sigma Performance in Safety too

• Use this method to solve problems: – Define problems in HR processes – Measure human performance – – – Analyze causes of problems Improve processes -- remove variations and non

value-added activities

Control processes so problems don’t recur 11

Why Safety Six Sigma (3S)?

• Appropriate for every business & function • Provides many tools, aids, skills • Promotes fact-based decision making & breakthrough thinking 6

Case Study - Product Stewardship From “meet the regulation”

to: “doing the right thing”

“Industry feels responsible to improve the ability for society to benefit from chemicals while minimising risk”

Product Stewardship “Responsible Care is the commitment by chemical companies to demonstrate continuous improvement of health, safety and environmental performance of their operations and products in a manner which is responsive to the concerns of the public” • RC insists on: – continuous improvement –

Communication

• Product Stewardship is one of RC codes of Management Practices.

Responsible Care fundamental features

• • • •

Guiding principles Codes, Guidance, Checklists Performance indicators Communication

• •

Experience sharing World-wide monitoring and registered logo

•

Encourages participation

•

Verification

Responsible Care improves HSE performance and makes it known

MOL PROJECT OUTLINE Operational Discipline and Operational Excellence Gain Management Commitment and Leadership Continuous Improvement Process Change in Safety Culture Process Safety Management and Systems

WORLD-CLASS SAFETY REQUIRES THESE ELEMENTS

 

Strong Demonstrated Management Commitment Safety Policies and Principles

 

Challenging Goals and Plans High Standards of Performance Leadership Elements

 

Supportive Safety Personnel Safety as a Line Organization Responsibility

 

Integrated Organization for Safety Progressive Motivation



Effective Communication



Continuous Safety Training and Development



Injury and Incident Investigations and Reports



Effective Audits and Re-evaluation Organizational Elements Operational Elements

What is important for employees?

    

Who are are my boss(es) ?

What do I want to achieve at company ?

What are the objectives?

What is the necessary reporting structure and frequency ? What are the tasks and responsibilities ?

“Maslow hierarchy of needs” 1.

2.

3.

4.

5.

Work/life harmony Growth Affiliation Rewards Safety/Security

Foremen Training

HSE module

version: final Aug, 7th 2003

Content

1. Safety is good business 2. Behavior Safety Culture 3. Case Study – Summary of Alkylation Accident Report

In the European Union, each year • 5500 people will die at work*.

• 4.5 million people will be seriously injured*.

• 145 million workdays will be lost*.

• Workplace injuries will cost the society around €150 billion in direct and indirect costs.

*Source: European Agency for Safety and Health at Work, http://agency.osha.eu.int/

Heinrich’s Triangle

1 Fatal 100 Lost time injuries 1,000 Recordable injuries 10,000 Near misses 100,000 hazards Unsafe acts - unsafe conditions

Iceberg concept

Fatalities Lost time injuries Medical treatment First aid cases Serious incidents with potential for serious injury Many close calls with only minor injury potential Unsafe acts : Not following safety rules Not following established procedures Making unnecessary changes Taking shortcuts Hurrying Using poor judgement Not maintaining good housekeeping

MOST OF THE COST IS HIDDEN

€35 billion to EU industry in 2000 (estimated)

DIRECT COSTS Medical costs Wage indemnity Claims administration fees Up to 5X as large INDIRECT COSTS Insurance premium increase Damaged equipment & goods Lost production and quality Process Interruptions/Yield Losses Replacement Labor / Overtime Litigation Damage to Customer Relations & Public Image

RELATION WITH BUSINESS EXCELLENCE

Good Safety = Good Business

Focus on people

Technical improvement Safety management focused on employees Time

Safety culture improvement

Safety Pointers

“A Picture Is Worth a Thousand Words” Working with Chemicals

What’s Wrong or Right?

2 4

Points to Consider

1 3

Corrected Situation

What Have We Learned?

• Know the hazards • Select appropriate gloves for all hazards • Inspect gloves • Store gloves properly

Content

1. Safety is good business

2.Behavior Safety Culture

3. Case Study – Summary of Alkylation Accident Report

Safety Principles (see: HSE Policy)

All injuries can be prevented Everybody has responsibility to prevent accidents All operating exposures can be safeguarded Training employees to work safely is essential Prevention of personal injuries is good business

THE CASE OF INJURIES Unsafe conditions 4%

96% Unsafe acts

98% of accidents due to human behaviour

Action to: Prevent the unsafe act Correct the unsafe condition will prevent the accident

Accident Investigation Cycle – the vicious circle

Accident Investigation Follow up Causes Operation Corrective Action Recommendations

Remember to thoroughly investigate all accidents and near-misses*

Ask yourself :

What failed in the management system that allowed the accident to happen ?

What caused the near-misses or accident ?

Not - Who is responsible ?

Be proactive !!

* Potential accident without injury or damage

Content

1. Safety is good business 2. Behavior Safety Culture

3. Case Study – Summary of Alkylation Accident Report

1. Executive Summary (II)

• The Report findings and its 1-14 proposed measures ensure adequate technical and organisational countermeasures of Alkylation Accident.

•

The prime event leakages created an intolerable, misperception risk.

This equipment failure with human and organisation failure (PPE/ warning alarm /Shutdown/ Repair Maintenance) lead to explosion and 3 slight work injuries. •

Significant general latent failure is the lack of proper Predictive Maintenance system of Alkylation/ Refinery technology.

• In a proactive philosophy of refinery management, all personnel – operating, maintenance , engineering and HSEQ staff – need to be mobilised to identify potential problems and work in common team.

Vessel 15V110 - after fire

7. Result of Investigation (I) - Incident Investigation Tree

(TRIPOD)

Fallible decisions

Slovnaft Refinery: •Ordering service without prescribing or Specifying required Technology/ work Instructions •Operating production Units without Proper emergency Response skill and Risk awareness of staff •Missing Quality Assurance Of HSEQ related services SMAO ensure service To SN Without: •Details organizational And tech.Guidelines •predictive Proper maintenance Policy/procedures G4F ensure service to SN without: •Analyzing site specific Hazards and develop Work instructions and training

General Failure Types

No procedure /approved work instruction for repair of pipe missing specific writing operating procedure for this work Emergency response test inadequate Mismatch between real And perceived risk (Error Enforcing Cond.) Unsuitable Furmanite Method for repair of pipe Insufficient Hardware Design

Preconditions

Repeated pipe leakages/ Equipment failure Wrong Decision making Human Error Inadequate warning/measuring System System failure Poor Instructions/ Procedures (Pracovna instrukcia 09) Org. failure

Unsafe Acts

Calibration of Gas detector Incorrect operation of fire truck Incorrect Shutdown Process Not applied emergency shutdown procedures Insufficient Repair Technology process (Furmanite tech) Shift leader/ supervisors Attempts to keep on operation Alkylate Unit

Breached Defences

Lack of :Personal Protective Equipment (PPE) safety shield and wind indicator/ Not proper Antistatic clothing /safety distance Warning Alarm Not accepted presence of danger condition

Incident or sub incident

Explosion of Flammable gas mixture Personal Injury Incident investigation of Slovnaft Alkylation unit 26/03/2003 Latent Stages Active Stages

Conclusion “

How to overcome the Barriers and to Improve Human Performance” • Selling Safety – Understanding your “customers” – Employees need fair treatment ,tools for tasks and a team environment – Sell a god product – 90% of the “Safety job” – Start Day One – Using Safety Committee/ team briefs meetings – Does 100% yield 100% - renting staff behavior – Understanding motivating factors • Safety should not be “First” – There are no Herculean efforts …………….right next to production, quality and profit. Safety is no first, not last , just equal .