PROSPEX-5 “Improving Your Business Through Safety”Handito Aji Saroso

PROSPEX-5 Product Manager

A Brief Story – Alcoa ExperienceA few minutes before noon, the new chief executive, Paul O'Neill, took the stage. He looked dignified, solid, confident. Like a chief executive.

Then he opened his mouth. "I want to talk to you about worker safety," he said. "Every year, numerous Alcoa workers are injured so badly that they miss a day of work."I intend to make Alcoa the safest company in America. I intend to go for zero injuries."

The audience was confused. Usually, new CEOs talked about profit margins, new markets and 'synergy' or 'co-opetition.' But O'Neill hadn't said anything about profits. He didn't mention any business buzzwords.

Eventually, someone raised a hand and asked about inventories in the aerospace division. Another asked about the company's capital ratios.

"I'm not certain you heard me," O'Neill said. "If you want to understand how Alcoa is doing, you need to look at our workplace safety figures." Profits, he said, didn't matter as much as safety.

Sources : Huffington Post, 27 Feb 2012

A Brief Story – Alcoa Experience (cont’d)

The investors in the room almost stampeded out the doors when the presentation ended. One jogged to the lobby, found a pay phone, and called his 20 largest clients."I said, 'The board put a crazy hippie in charge and he's going to kill the company,'" that investor told me. "I ordered them to sell their stock immediately, before everyone else in the room started calling their clients and telling them the same thing."It was literally the worst piece of advice I gave in my entire career," he said.Within a year of O'Neill's speech, Alcoa's profits would hit a record high. By the time O'Neill retired in 2000 to become Treasury Secretary, the company's annual net income was five times larger than before he arrived, and its market capitalization had risen by $27 billion. Someone who invested a million dollars in Alcoa on the day O'Neill was hired would have earned another million dollars in dividends while he headed the company, and the value of their stock would be five times bigger when he left.

Sources : Huffington Post, 27 Feb 2012

What have you learned from the story?

Research Say That ....

Good Safety= Good Business

But How?

Creating and Improving safety culture is the

foundation of Operational Excellence for

Sustainable Business

Creating and improving Safety Culture WHAT,WHY and HOW?

1. Culture – What is it? How to measure?

2. Why is it important?

3. Can You Change the culture?

What is Culture?

Culture : “Enough people doing same thing long enough”

(Critical mass & sustainability)

Safety Culture,

… is about how people think, believe, mean and intention &

behavior in relation of safety.

… is how to change people motivation of safety, from “they

scare with the rule” to be “they love to work safely, they

care others, they love their future and families etc”

By developing “Safety Culture”, we can sustain people safety behavior

because people want it, they believe in it and the highest intention in

their life, and of course we need to help them with high standard OH&S

system in place.

Why Culture is Important?

Jusk ask oil and gas off shore• Why do fires continue to

occur on offshore platform?

• Why do major lossess of containment occur?

• What causes management to forget the lesson from the past?

Causes of Injuries

The experience tell that...

The majority of process and personal incidents, injuries are caused by

unsafe act and behavior NOT unsafe

condition4%

96%

Unsafe Act• Short cut• Rushing• Rule

violation• Procedure

deviation• Attitude• Use of PPE• etcUnsafe

condition

Safety Culture and Operational Discipline (GE Experience)

• In 2001, GE initiated a Six Sigma project to assess causes for significant Process Safety Incidents in 2000.

• OD (Operational Discipline)was identified as a dominant factor in 53% of the incidents

FAILURE TO HAVE AND FOLLOW GOOD PROCEDURES IS A MAJOR CAUSE TO INCIDENT

Can you change the culture? Yes you can. By using appropriate system and methodology you can shift your safety culture

Weaker Culture

Stronger Culture

So How We Do It?

Implementation of PROSPEX-5 help you to measure and improve your safety culture

Safety Culture is developed and improved through integrated 4 pillar approach

Technical Capability

Management Infrastructure

People Mindset

Leadership

•How the asset and resource configure to create value add

•Elemens of this are Management Commitment, Hazard and Risk Management, Working System, Inspection and Monitoring, Reporting and Communication, Audit System

•Formal structure, process and system that support in achieving optimization of Technical Capability Pillar

• Elements of ths pillar are : Organization Design, Performance Management, Support Function, Capability Building Process, Contractor Management, Continuous Improvement

•Perception of the people toward system and management approach has implemented

• This process consist of several element that are Attitude, Competency, Communication, Team Work, Working Environment

•Process of defining the desired state, setting up the team to succeed, and engaging in the discretionary efforts that drive the safety values

• Element in this pillar such as : Vision, Inspirational Communication, Supportive Leadership, Personal Recognition, Role Model, Performance Focus

Gathering the data

Data Analysis & Identify the opportunity

Setup Initiatives

Situation Assessment

Conduct diagnostic with

focused to 4 pillar of safe

operational excellence to

understand current

condition, develop action

plan and initiatives

Launch program

Training / Workshop

Field Coaching

Monitoring Result

Plan Realization

Initiatives realization

and capturing

improvement

opportunity

SUSTAINABILITY PROCESS

After Action Review

Lesson Learned

Stand alone

Make It Stick

Program Evaluation,

review the change,

lesson summary, and

handover to stand alone

Establish Team

Team conditioning

Communication & Condition Leadership

Decide & select Unit Areas

Preparation

Team preparation (

team selection, project

planning, setup

milestone)

PROSPEX-5 Methodology for Cultural Change consist of 4 main stages

Illustration during implement Pro SPEx-5 Way :

Coaches together

with Line Leaders

safety do

assessment the unit

area for

improvement

Implement the

improvement initiatives on

the job Intensive

coaching at the

field

Coach observe

the progress and

influence the

focus to achieve

result

Achieve the performance

improvement and

enjoyable work climate

By using PROSPEX-5 concept, all parameters of OH&S Implementation were clustered into 4 parts and assessed

1. Technical Capability (Management Commitment, Hazard Risk Management, Working System, Inspection and Monitoring, Audit System, Accident and hazard investigation and reporting)

2. Management System (Organization Design, KPI and Visual Management, Performance Management, Contractor Management, Capability Building, Continuous Improvement) :

3. People Mindset : Attitude, Competency, Communication, Team Work, Working Environment, Value and Belief

4. Safety Leadership : Vision , Inspirational Communication, Personal Recognition, Role Model, Supportive Leadership, Performance Focus

We’re using 4 combine method to assess the safety culture

1. Interview

2. Survey

3. Observation

4. Document Revie

How to assess the culture?

Some of Tools we used to measure culture

Nama :

Posisi :

NoTidak

PernahJarang Sering Selalu

1

2

3

4

5

6

7

8

9

10

11

12

13

14

Safety Leadership Assessment

Apakah pimpinan menaruh perhatian untuk penggunaan peralatan yang sesuai?

Apakah pimpinan menyediakan penghargaan untuk kinerja safety?

Apakah pimpinan mengapresiasi safety improvement/good practice yang sudah dilakukan?

Apakah pimpinan mempromosikan safety di setiap situasi?

Apakah issue safety dikomunikasikan ke seluruh lapisan karyawan?

Apakah pimpinan mengadakan bincang-bincang safety dengan karyawan?

Apakah pimpinan memberikan KPI safety yang jelas?

Apakah pimpinan terlibat dalam aktivitas safety? (investagasi, audit, inspeksi)

Apakah pimpinan menanamkan nilai-nilai safety ke karyawan?

Apakah pimpinan melakukan follow up terhadap nilai safety?

Apakah pimpinan mengikuti aturan safety?

Apakah pimpinan melakukan tindakan jika menemukan penyimpangan safety?

Pertanyaan

Apakah pimpinan memberikan visi safety yang jelas?

Apakah pimpinan menempatkan safety sebagai yang paling utama?Nama :

Posisi :

NoTidak

Setuju

Kurang

SetujuSetuju

Sangat

Setuju

1

2

3

4

5

6

7

8 Masih banyak hal yang bisa dilakukan untuk memperbaiki kondisi safety yang ada

9 Atasan saya mengecek pekerjaan saya secara reguler

10 Atasan saya memberikan support yang saya perlukan untuk menyelesaikan pekerjaan

11 Atasan saya memberikan panduan yang jelas untuk mencapai tujuan

12 Saya tidak merasa disalahkan jika ada masalah di tempat kerja

13 Atasan saya terbuka untuk menerima feedback dari karyawan

14

15 Saya merasa keberhasilan saat ini karena dukungan dari rekan/atasan

Safety Mindset Survey

Saya tidak merasa sakit hati apabila atasan/rekan memberikan feedback

Action Log safety yang ada sudah difollow up dengan baik

Meeting yang saya ikuti berjalan efektif dan tidak banyak membuang waktu

Pertanyaan

Saya tahu apa kontribusi saya untuk menjaga keselamatan kerja

Saya bangga dengan pencapaian safety di tempat kerja

Saya merasa terlibat untuk ambil bagian di bidang safety

Masalah yang ada sudah diselesaikan dengan metode yang tepat

Setiap karyawan mempunyai tanggung jawab dan pekerjaan yang jelas tentang safety

Element 1 2 3 4

Kebijakan untuk safety

belum tersedia

Kebijakan ada tapi hanya

bersifat lisan

Kebijakan sudah ada dalam

bentuk tertulis tapi tidak

semua karyawan tahu

Kebijakan sudah ada secara

tertulis, sudah

dikomunikasikan ke seluruh

karyawan dan mereka

mengerti

Kebijakan safety belum

dituangkan ke dalam bisnis

proses yang ada

Beberapa kebijakan safety

sudah dituangkan ke dalam

business process tapi belum

terdokumentasi

Sebagian kebijakan sudah

dituangkan ke dalam

business process dan

terdokumentasi

Seluruh kebijakan safety

sudah dituangkan ke dalam

business process dan

terdokumentasi

Business Process yang ada

tidak pernah dilakukan

audit untuk mengetahui

konsistensi penerapannya

Audit dilakukan tapi tidak

secara regular

Audit dilakukan secara

reguler tapi hasilnya kurang

difollow up

Audit dilakukan secara

regular dan hasilnya

difollow up sehingga ada

peningkatan yang dihasilkan

Standard untuk penerapan

FPE belum tersedia

Hanya 2 dari 8 Standard FPE

yang tersedia dan

didokumentasikan

5 dari 8 Standard FPE

tersedia dan

didokumentasikan

Seluruh standard FPE

tersedia dan

didokumentasikan

< 30% standard dipatuhi 30%-60% standard dipatuhi 60%-85% standard dipatuhi >85% Standard dipatuhi

Kepatuhan terhadap

standard tidak pernah

dinilai

Kepatuhan terhadap

standard dinilai tapi tidak

secara reguler dan tidak ada

dokumentasi

Kepatuhan terhadap

standard dinilai secara

reguler tapi hasilnya kurang

difollow up

Kepatuhan terhadap

standard dinilai secara

reguler dan hasilnya

difollow up sehingga ada

peningkatan

Safety Technical Capability Assessment Grid

Policy &

Process

Standard

and

Procedure

Element Aspect 1 2 3 4

Hak untuk pengambilan

keputusan tidak

didefinisikan

Hak pengambilan

keputusan hanya

didefinisikan untuk

level manajer ke atas

Hak pengambilan

keputusan sudah

didefinisikan untuk

semua level

Hak pengambilan

keputusan sudah

didefinisikan secara

jelas dan tersistem

untuk semua tingkatan

level

Hak pengambilan

keputusan dilakukan

oleh tingkat jabatan

tertinggi

Hak pengambilan

keputusan

diasosiasikan dengan

posisi atau jabatan

Tingkat jabatan

terendah merasa

diberdayakan haknya

untuk mengambil

keputusan yg terkait

dengan keahliannya

saja

Pengambilan

keputusan cenderung

diberikan kepada

tingkat jabatan

terendah yg

memungkinkan

Job tidak didefinisikan

jelas pada semua level

Job didefinisikan jelas

untuk top level

Job didefisikan secara

jelas untuk semua level

Job Desc yang

komprehensif ada

untuk menjabarkan

tugas dan tanggung

jawabnya

Tidak ada struktur

organisasi yang jelas

Struktur organisasi ada

tapi hanya sebatas

mencantumkan posisi

Struktur organisasi ada

dan menggambarkan

hubungan yang jelas

tiap posisi (straight or

dot) dan jumlah

headcount tapi tidak

update

Struktur organisasi ada,

lengkap, dan diupdate

secara reguler. Struktur

tersebut

dikomunikasikan ke

seluruh lapisan

karyawan

Aligned structure

Struktur yang ada

disusun berdasarkan

fungsi yang harus dapat

bekerja secara optimal

sendiri

Organisasi terorganisir

lewat fungsi tapi

hubungannya tidak

jelas terjabarkan dan

berdiri sendiri

Organisasi terorganisir

lewat fungsi dan

hubungannya

terjabarkan secara jelas

tapi tidak dijalankan

sepenuhnya

Organisasi terorganisir

di dalam value stream

Safety Management System Assessment Grid

Decision Process

Job Design

Organization

Design

Which dimension we need to focus?

0 0.5 1 1.5 2 2.5 3 3.5 4

Pride

Execution

Support

0 0.5 1 1.5 2 2.5 3 3.5 4

Vision

Engagement

Role Model

Rewards and Recognition

Communication

Technical Capability

Management Infrastucture

People Mindset

Visible Leadership

-1,09

-0,93

-0,75

-0,45

-1,10

-0,46

-0,80

-0,10

-0,33

-0,53

-0,40

0 0.5 1 1.5 2 2.5 3 3.5 4

Policy and Business Process

Standard and Procedures

Skill and Knowledge

Quality System

0 0.5 1 1.5 2 2.5 3 3.5 4

Organization Design

KPI and Visual Management

Performance Management

Contractor Management

0,10

-0,80

-0,80

0,00

-0,10

Take away

• A strong safety culture is the foundation to achieve operational excellence.

• Safety culture can be measured, compared, and correlated with injury performance as well as business performance..

• Measurement techniques allow us to target improvement efforts

• To sustain safety performance

• We need Aligned strategy with your values and principles

• Visible leadership commitment

• Operational Discipline

The Ice Berg

“You will achieve the level of safety that you

demonstrate you want to achieve”

Handito Aji Saroso,ST, Lean Six Sigma Black Belt

PROSPEX-5 Product Manager

Building and Plant Safety Institute

Mobile (+62) 81230301552

Office (+62) 80873270

Email : handito.saroso@bpsi-safetyinstitute.com

www.bpsi-safetyinstitute.com