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