Achieving and Sustaining Operational
Excellence in Manufacturing:
DuPont Approach
Srinivasan Ramabhadran
Global Leader
Process Safety & Risk Management Offerings
DuPont Sustainable Solutions
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Safety is a DuPont Core Value
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Core values: Safety, ethics and respect for
people and the environment
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$32 Billion revenue with 13 business units
from electronics to plastics, paints and
agricultural chemicals
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Over 175 operating facilities around the world
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Worldwide reputation for industrial safety
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DuPont applies a single PSM management
system worldwide
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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The Vision of DuPont
To be the world’s most dynamic science company, creating
sustainable solutions essential to a better, safer, healthier
life for people everywhere.
We are a market-driven science company.
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Mission:
Sustainable Growth
The creation of shareholder
and societal value while we
reduce the environmental
footprint* along the value
chains in which we operate.
*All injuries, illnesses, incidents, waste,
emissions, use of water and depletable
forms of raw materials and energy.
ETHICS & SUSTAINABILITY
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DuPont Sustainability Accomplishments
Absolute Values
Achieve 5% ($50 Million USD) annual
decrease in energy use, consistent
with sustainability goals
Results 1990 - 2009
¾ 19% decrease in energy use
Percent of 1990 (2004 for water)
Goal
160%
140%
Share price ($)
120%
Production
Water
Hazardous Waste
Energy
CO2 eq.
100%
80%
60%
40%
0%
¾ 20% increase in production
1990
¾ $5B in cost savings
1995
2000
2005
Energy Efficiency Initiatives Examples
Reduction 1990 - 2009
Air Carcinogens
U.S. TRI* “Releases”
Air Toxics
100$
20%
92%
77%
75%
9
9
9
9
9
9
9
9
Integrated load controls
Utilize Vented H2 in CB Boiler
Improve Condensate Return
Reduce Liquid Nitrogen Usage
Steam Trap Maintenance
Cooling Tower Water Temperatures
Monitoring & Targeting
Mindset and Behaviors…
* TRI = Toxic Release Inventory
Sources: DuPont Global Reporting Initiative (GRI) report, Yahoo Finance
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
2009
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DuPont Approach
Major Shift in Leadership Thinking
Sustainable growth is rooted in core values, driven by leadership commitment, aligned with
business objectives, and embedded throughout the organization and culture.
Corporate Core Values
To here
Strategy &
Roadmap
To here
Shift
emphasis
from here
Operations
Efficiency
Integrated Management
Systems
Growth &
Innovation
Compliance & Reporting Initiatives
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
Culture & Processes
in Operations
Management
Stakeholders
Engagement
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Assets Management
Integrated Production Systems
Manufacturing Asset
Managing
Process
Plant
Performance
and Business
Imperatives
ƒ DuPont Best
ƒ DuPont Best
Practices
Practices
ƒ Standard
ƒ Standard
Operational
Operational
Procedures
Procedures
Technical
Model
ƒ Operate to Plan
ƒ Operate to Plan
( Capacity,
( Capacity,
Productivity)
Productivity)
ƒ Maintenance
ƒ Maintenance
and Reliability
and Reliability
ƒ Supply Chain
ƒ Supply Chain
ƒ Manufacturing
ƒ Manufacturing
Technology
Technology
ƒ Small Project
ƒ Small Project
Implementation
Implementation
Capabilities
Engine
ƒ 200 yrs of
ƒ 200 yrs of
Manufacturing
Manufacturing
Experience
Experience
ƒ DuET
ƒ DuET
ƒ Engg. COC –
ƒ Engg. COC –
M & R, Energy
M & R, Energy
ƒ Six Sigma
ƒ Six Sigma
Champions
Champions
ƒ Subject Matter
ƒ Subject Matter
Experts
Experts
Mindsets and
Behaviors
ƒ Technical
ƒ Technical
training
training
ƒ Continuous
ƒ Continuous
Learning
Learning
Environment
Environment
Outcomes
and
Sustainable
Improvements
Production Goals integrated with Sustainability Goals
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Process Safety Management Defined
Process Safety Management is the application of
management systems and controls (standards, procedures,
programs, audits, evaluations) to a manufacturing process
in a way that process hazards (risks) are identified,
understood and controlled so that the process related injuries
and incidents are prevented. This requires a sustained
effort by leadership at all levels.
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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DuPont Process Safety Management Model
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PSM Leadership Model
Cat A PSM Incidents
Lagging
Indicators
Cat B PSM Incidents
Cat C PSM Incidents/Near misses/
Key Learnings
Leading
Metrics
Metrics &
Recommendations from
Incidents , PHA & Audits
Trained , Knowledgeable, Capable People in all roles
Adequate resources
Financial Support
Knowledge Management
Leadership
Safety Culture, Commitment, Accountability, Resources, Involvement
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Foundational
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Achieving Operational Excellence:
Leadership driven
Overall “AS-IS” Position
Future “TO-BE” Objective
• Culture Maturity curve
Culture Maturity curve
Objective
Executive Summary
Safety Focus Areas
• Key Risks
• Gaps & best practices
(Safety elements, timing, milestones)
Strategy
Detailed Analysis
Implementation Plan
• Findings
• Focus Areas
Actions to upgrade upstream
Safety operating model
Detail
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Compliance assurance: Line Accountability
CSC
Chair
Tasks & Deliverables
• Visible program support
• Strategic guidance, direction & objectives
• Hold HSSE councils, Cross-sub working groups to commitments
Project Team`
HSSE Experts
Supporting Orgs
Supporting
HSE Council
Cross-subsidiary
working group
Workplace Safety
Process Safety
Contractor Safety
Occupational Health
Implementing
Line organization
• Technical guidance
• Feedback & testing
• Ongoing support
Cross-sub working groups
• Design & validate policies and
processes
• Develop rollout materials and
plans
• Manage implementation planning
and execution
• Ongoing performance monitoring
• Process adjustment and
refinement
• Technical guidance
• Feedback & testing
Environment
Security
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Project Team
• Day-to-day management
• Project communications
• Information clearinghouse
Line Organization
• Implement policies,
procedures and processes
• Ensure appropriate training
and execution
• Provide data to
subcommittees for ongoing
monitoring
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Practical approach to establish new practices
and behaviors
Experiential workshops: Formal classroom sessions
focused on knowledge transfer & skill development
related to skills needed to drive the change program.
Sessions provide the conviction and motivation for the
change program.
Practical Application:
Skills transfer is tested
and coaching is provided
in the field
DuPont lead
Coaching
Practical
Application
client lead &
Dupont support
Workshop 3
Practical
Application
Workshop 2
Content
Finalization
through
task teams
Workshop 1
Deliver
Practical
Application
client lead &
Dupont review
Coaching
Performance
metrics to
sustain change
Coaching
Top management involvement
Transformation
Content finalization
through task teams:
Development of best
practice Management
System and content.
Expert and Experiential
coaching: On-the-job coaching to
build capabilities and confidence
to drive the change.
Performance metrics to sustain change:
Selecting and implementing performance
metrics with a focus on leading metrics to
sustain the improvement initiatives.
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Focus on Execution is Key
Management
Standards
Operational
Discipline
x
Operational
Excellence
=
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Operational Discipline Characteristics
PSRM
Resources
Employee
Involvement Organizational
Pride
Excellent
Housekeeping
Leadership
by Example
Active
Communications
OPERATIONAL
EXCELLENCE
No
Shortcuts
Practices
=
Procedures
Strong
Teamwork
Shared
Values
Up-To-Date
Documentation
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Leadership Responsibilities for Sustenance
•
Leaders must have a clear vision of the ultimate goal of
the company’s process safety management efforts
•
Leaders must set the goals and strategic objectives
•
Leaders must insure sufficient, quality resources are
dedicated to PSM system requirements
•
Leaders must hold their line organization accountable for
PSM implementation and results.
•
Leaders must recognize and reward PSM
accomplishments to drive continuous improvement
•
Leaders must lead…felt leadership
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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Conclusion
• Process Safety Management is the way to deal with the
most serious and challenging business risks to achieve
operational excellence
• Structured and systematic managing processes and
systems, high standards of performance, tracking results
of key metrics and audit will help sustain operational
excellence
• It provides an opportunity to prevent a catastrophic
incident from occurring
• PSM. Live it. Lead it.
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
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www.sustainablesolutions.dupont.com
Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.