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Foundation for Safety Culture Improvement – in Pursuit of Safety Excellence Vineesh Kochhar Business Director, South Asia 4 th October, 2012

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Foundation for Safety Culture Improvement – in Pursuit of Safety Excellence

Vineesh Kochhar

Business Director, South Asia

4th October, 2012

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1. WHO WE ARE?

2. WHY DO IT?

3. WHAT IS IT ABOUT?

4. HOW DO WE DO IT?

5. HOW DO WE KEEP IT GOING?

AGENDAAGENDA

3

Safety and Health

Highest Ethical Behavior

Respect for People

Environmental Stewardship

Safety and Health

Highest Ethical Behavior

Respect for People

Environmental Stewardship

The Foundation of DuPontThe Foundation of DuPont

CORE VALUES

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Belief that all injuries are preventable developed in the

1940s

Safety statistics began in 1912

First safety rules established in 1811“Safety is a line management responsibility. … No employee may enter a new or rebuilt mill until a member of top management has personally operated it.”

– E. I. du Pont

Powder mill operation began in 1802

Off-the-job safety began in the 1950s

PSM Focus mid 60s

“Goal is Zero” 1990s

Over 200 years, Safety has become part of our DNA

The DuPont Safety CultureThe DuPont Safety Culture

Sustainability early 1990s

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1. WHO WE ARE?

2. WHY DO IT?

3. WHAT IS IT ABOUT?

4. HOW DO WE DO IT?

5. HOW DO WE KEEP IT GOING?

AGENDAAGENDA

6

Drivers for Safety Excellence Drivers for Safety Excellence

Performance

Assets

OD

Sustainability

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What we see v/s what it is!What we see v/s what it is!

THE BULK OF THE ICEBERGAdditional Costs of Injuries Damaged equipment & goods Lost production and quality Process Interruptions/Yield Losses Replacement Labor / Overtime Litigation Damage to Customer Relations &

Public Image

THE TIP OF THE ICEBERGDirect Costs of Injuries Medical costs Wage indemnity Claims administration fees

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1. WHO WE ARE?

2. WHY DO IT?

3. WHAT IS IT ABOUT?

4. HOW DO WE DO IT?

5. HOW DO WE KEEP IT GOING?

AGENDAAGENDA

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In our experience…

The majority of process and personal incidents, injuries and accidents are caused by unsafe acts and behaviors, not conditions and equipment.

Unsafe ActsUnsafe ActsUnsafe ActsUnsafe Acts

UnsafeUnsafeConditionsConditions

UnsafeUnsafeConditionsConditions

Unsafe Condition or Act?Unsafe Condition or Act?

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Consequence

Frequency

Process Safety v/s Personnel SafetyProcess Safety v/s Personnel Safety

HF/LC

LF / HCImplement

PSRM

LF/LCImplement a

safety culture

“The Goal is Zero”

No Future here !

HF / HC

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Safety ParadoxSafety Paradox

Time

Per

cep

tio

n o

f r i

sk

Serious accident/incident

Rules violated when perceptions decay over time

Companies with SMS

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- Unsafe Acts- Employee-Created Unsafe Conditions

Near Misses or First Aid Cases

Recordable Injuries

Majors (LWCs and RWCs)

Fatality

Trailing Indicator

Safety Hazard Pyramid

Leading Indicator

Reactive Efforts

Proactive Efforts

Gap in Thinking / Knowledge / Implementation

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Creating Organisational Ownership

=

Management Standards

Operational Discipline

Operational Effectiveness

x

Current State of Client Safety Standards

Current State of Implementation

Operational Effectiveness

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Copyright © 2010 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.

1. WHO WE ARE?

2. WHY DO IT?

3. WHAT IS IT ABOUT?

4. HOW DO WE DO IT?

5. HOW DO WE KEEP IT GOING?

AGENDAAGENDA

15

Copyright © 2010 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.

DuPont Approach to SafetyThree Key Ingredients for Excellence*

1. Risk Anticipation

(how risks are understood by people and systematically addressed)

2. Maturity of the Organisation

(how people work together and support each other)

3. Operational Discipline

(how following the rules is transformed into organizational pride)

* in Safety and Other Business Quality Parameters e.g.: Productivity, Quality, Customer Service, Compliance, etc.

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Zero is difficult

Zero by chance

Zero by choice

Zero is impossible

DependentDependent IndependentIndependentReactiveReactive

Natural Instincts Supervision

Self Teams

Inju

ry R

ates

InterdependentInterdependent

Safety Culture Transformation ProcessSafety Culture Transformation Process

Reactive (Lagging) Proactive (Leading)

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Copyright © 2010 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.

We assist clients to improve safety performance by providing integration of DuPont know-how into client operating environment

Our clients have existing management systems that embody certain values and philosophies, and reflect certain organizational priorities.

Our goal is to help our clients develop people behaviors by applying our know-how to their situation using sound consulting methods to create positive change.

Consulting methodology

Transformation

ClientManagement

System

ClientManagement

System

DuPontOwner-Operator

Knowledge &DSR ClientExperience

Client Positive Change

Client Positive Change

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Building Blocks of Safety CultureBuilding Blocks of Safety Culture

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1. WHO WE ARE?

2. WHY DO IT?

3. WHAT IS IT ABOUT?

4. HOW DO WE DO IT?

5. HOW DO WE KEEP IT GOING?

AGENDAAGENDA

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How Do we Keep it GoingHow Do we Keep it Going

Visible, “felt” leadership commitment

Safety is not just a ‘priority’ ...it is a ‘VALUE’

Foster ‘will’ and ‘passion’ for change

Employee involvement & “ownership”

Belief that all incidents are ‘preventable’

‘Good safety is all about people’

Continuous improvement

‘What gets measured gets done’ – focus on leading and lagging indicators

Improvement is a …‘moving target’ – need to keep raising the bar

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As Leaders, we need to ask ourselves these questionsAs Leaders, we need to ask ourselves these questions

1. At times, do business goals compete with the safety focus?

2. Where is our organization on the culture curve?

3. Do we drive demonstrated leadership commitment? Is safety a line

management responsibility?

4. What is the level of engagement of employees for safety?

5. How can we drive continuous improvement? …… GOAL ZERO!

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Role of LeadershipRole of Leadership

Production

ScheduleSafety

Profit

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In closing….some food for thought!In closing….some food for thought!

“You get the level of safety that you demonstrate you

want!”

“We must become the change that we

want to see!”

24Copyright © 2009 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 DuPontThe Vision of DuPont

Our vision is to be the world’s most dynamic science company,

creating sustainable solutions essential to a better, safer, healthier life for people

everywhere.

MARKET-DRIVEN SCIENCE

© National Geographic image© National Geographic image

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DuPont 2011 Segment SalesDuPont 2011 Segment Sales

* Total company sales exclude transfers.

Agriculture

Electronics &Communications

Performance Chemicals

Performance Coatings

Performance Materials

Safety &Protection

Industrial Biosciences

Nutrition & Health

$38B*

$9.2B

$2.5B

$4.3B

$6.8B

$3.9B

$3.2B

$7.8B

$0.7B

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DuPont – 22 Essential Elements of SafetyDuPont – 22 Essential Elements of Safety

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Safety Priority or Value?Safety Priority or Value?Safety is a PRIORITY when working safely is a condition of employment, your boss insists you do it and you do what you are asked to do. It affects an individual’s behavior.

Safety is a VALUE when you work safely without being told to do so. It is at the center of who you are; it defines who you are and the way you work and live. It affects how you think.

Going from priority to value is a process. It takes time and effort on your part.

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Safety Management ConceptSafety Management Concept

LeadershipLeadership

Management Commitment Policies & Principles Goals, Objectives, & Plans Procedures & Performance

Standards

Management Commitment Policies & Principles Goals, Objectives, & Plans Procedures & Performance

Standards

StructureStructure

Line Management Accountability& Responsibility

Safety Personnel Integrated Organization Structure Motivation & Awareness

Line Management Accountability& Responsibility

Safety Personnel Integrated Organization Structure Motivation & Awareness

Processes & ActionsProcesses & Actions Effective Communication Training & Development Incident Investigation Safety Observations Contractor Safety Management

Effective Communication Training & Development Incident Investigation Safety Observations Contractor Safety Management

REACTIVE PROACTIVE

Incident Incident InvestigationsInvestigations

Learn From WhatHappened

SafetySafetyObservationsObservations

Learn From What Has NotYet Happened

PREVENT PREVENT

Managing & Accountability Managing & Accountability StructureStructure(Line Organization)(Line Organization)

The Driving Force for Change is Strong Visible Leadership, the Will & Commitment to Change, Rigorous Execution and Enthusiastic Employee Involvement

The Driving Force for Change is Strong Visible Leadership, the Will & Commitment to Change, Rigorous Execution and Enthusiastic Employee Involvement

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Culture change needs collective efforts and timeCulture change needs collective efforts and time

-----------------------------------------------------------------------------------------

Awareness / Training & Coaching / Involvement / Motivation / Consequence Management

StatusStatus

RitualsRituals

TotemsTotems TaboosTaboos

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India Experience

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Partners to Safety Cultural Transformation

Chemical

s

DuPont Methodology & Approach Works in IndiaDuPont Methodology & Approach Works in India