using six sigma tools to analyze ehs performance metrics · objectives of the webinar 10 “using...

Using Six Sigma Tools to

Analyze EHS Performance

Metrics

May 22, 2014

Introductions

2

Moderator Oneil Williams Manager Strategic Accounts ProcessMAP Corporation

Guest Speaker Dean Rossi President Safety Culture Partners, LLC

Housekeeping Items

3

Attendee microphones will be muted to prevent distractions

Ensure you enter your audio pin if dialing in by telephone

Submit questions at any time using the “Questions” tool

Q&A session

Anonymous polls

Post-webinar survey

Contact info

4

ProcessMAP

Company

Overview

Company Overview

EXPERIENCE

13+Years of Innovation. Continued Growth &

Long-Term Partnership with Customers.

GLOBAL FOOTPRINT

World’s Leading Companies Rely on ProcessMAP in 90+

Countries.

INDUSTRY LEADER

World’s Leading Software

Platform for EHS, Sustainability & Carbon

Management, and Compliance & Learning.

5

ProcessMAP Purpose

6

We empower customers with information to help them preserve the environment, create a safe workplace and ensure the well-being of their employees.

“We help remove the non-value added

administrative burden on EHS professionals.”

Platform Overview

Cloud/SaaS Model Integrated Platform Multiple Access Global Platform

• Comprehensive Suite of Modules

• Built from ground-up with customer input

• Embedded Analytics and Reports

• Connectors to Internal & External Systems

• No CAPEX Cost with ‘Pay-per-Use’ benefits

• Predictable Annual Cost

• Safe Harbor Certified

• Supports Multiple Browsers

• Safe and encrypted access over Internet

• Mobile capabilities

• Designed for Global Companies

• 22+ languages and 100+ currencies

• Currently used in over 90+ countries

• Conversions from Metric to English units and vice-versa

ERP Scale Platform for EHS and Sustainability

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Broad Industry Experience

8

Automotive Agribusiness Electric Utilities

Oil & Gas

Metals Mining

Retail/Distribution

Manufacturing

Pharma Transportation

Healthcare

Media

A Sample of Our Customer Base

9

Objectives of the Webinar

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“Using Six Sigma Tools to Analyze EHS Performance Metrics”

• Understanding the importance of having an EHS MIS to

capture vital EHS data

• Analyzing the data to see if your changes are achieving

results

• The importance of being “graphical” when reporting upwards

in your organization

• Analyzing the data to predict when you may be out of

compliance

• Learning four key Six Sigma quality tools to help analyze your

EHS data

Dean Rossi’s

Bio

11

Featured Speaker

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Dean Rossi President and Owner, Safety Culture Partners LLC

25 years of EHS experience at site, division, and corporate level

Held multiple EHS positions at GE Plastics

Past global EHS manager at Stanley Black & Decker

Past global director of EHS for a division at Ingersoll-Rand

Most recently, served as the VP, Global EHS at Exide Technologies

BS in Industrial Hygiene from Purdue University

MBA, Organizational Leadership & Mgmt Emphasis

Six Sigma Black Belt

Using Six Sigma

Tools to Analyze

EHS

Performance

Metrics

13

14

EHS Function Transformation – Maturity Curve

Transforming EHS Function from Chaos to World-Class

Polling Question

15

What is your familiarity with ‘Six Sigma’? Not Familiar Familiar with ‘Six Sigma’ Green-Belt Trained Black-Belt Trained Master Black-Belt Trained

Some Common Manufacturing EHS Questions & Statements

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1. Senior leadership asked to see a control chart of our safety

incidents over the years.

2. Your VP Operations, asked if spending the time doing BBS

observations is worthwhile.

3. The city wants to lower your waste water effluent BOD limit from

325 mg/l to 275 mg/l; is that O.K.?

Your VP of Operations asked

How capable are we to achieve compliance at the new level?

“If the city does continuous 24 hour monitoring at our

outfall, how long on average will it be before we are out of

compliance?”

Predictive Phase – One step closer to World-Class Performance

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4 Tools that Every EHS Professional Needs to Master

1. Statistical Process Control (SPC) Charts • U – Charts (Safety Incidents) • I & mR Charts (WWTP)

2. Pollution Prevention Device Capability Analysis • How capable are you to maintain

compliance?

3. Regression Analysis • We changed “x” did “y” change?

4. Student t-test • Test two populations before and after

changes

Polling Question

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How do you convey critical EHS findings and conclusions to Upper Management? Informal verbal communication Written communication with no data Written communication with data in

spreadsheet format Graphical presentation with detailed

analysis

What is this

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Whisky, Jay Leno, Coca Cola, Cars, Taxi, JVC, Sbarro, Marquis, Buses, People, Panasonic, Red Shoes, Paul Simon, Buildings, Helicopter, Parachute, Tommy , Bright Lights, Night time, Street, Cross walks, Tickets, Sheena Easton, 1964-1993

A Picture Speaks a Thousand Words

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We need to learn to get “Graphical”!

Statistical Process Control Charts

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• A graph used to study how a process changes over time

• Central line: Average, Upper line: Upper control limit and

Lower line: Lower control limit

• Lines determined from historical data

• Provides ability to draw conclusions about whether the

process variation is consistent (in control) or is

unpredictable (out of control, affected by special causes

of variation)

• I & mR Control charts for variable data used in pairs

• Top chart monitors the average, or the centering of the

distribution of data from the process while the Bottom

chart monitors the range, or the width of the distribution

• If your data were shots in target practice, the average is

where the shots are clustering, and the range is how

tightly they are clustered

Six Sigma Tools for EHS

• SPC Charts

– I & mR

• Plotting Workers’ Comp. data

• Waste water Effluent data

• Number of Injuries, BBS Observations etc.

– u Chart

• Safety Incident Rate data

– Attribute data with changing variable sample size like number of hours worked per month.

• Regression Analysis

– Used to determine relationship between two variables • Ex. Impact of number of BBS observations on reduction of injury rates

• t-Test

– Used to determine if there is a statistical improvement after a change was made • Ex. Did our injury rates/ Workers’ Comp Cost reduce after implementation of Ergonomics program

• Capability Analysis

– Used to determine how “capable” you are to stay within your permit limits • Ex. City wants to reduce your waste water permit limits by 25%. Are you capable to stay in compliance?

22


23

Description: Individuals and Moving Range Chart (I&mR). Plots in a time series. Shows where 99+% of your data should lie.


24

PPE Prgm Temp

EE

Prgm

Ergo Prgm

BBS Prgm


25

Description: I & mR Chart of rolling 12 month Workers’ Compensation Costs before and after Implementation of an Ergonomics Program

Control Chart Examples

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Polling Question

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How would you describe this process? Stable and in control Mean is below the permit limit Small degree of variation None of the above All the above


28

Any concerns here?

Special cause variation


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What does this chart tell you?

Polling Question

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What does this chart tell you? Nothing – There’s no problem here We’re OK – Those data points are not

normal This process normally runs above the

permit limit There are no special

cause variations here


31

What happened?

Student t-test

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• A method of testing hypotheses about the mean of a small sample

drawn from a normally distributed population when the

population standard deviation is unknown

• Formulate a null hypothesis, which states that there is no effective

difference between the observed sample mean and the hypothesized

or stated population mean—i.e., that any measured difference is due

only to chance

In EHS, for example, the null hypothesis could be that implementing an ergonomics program has

had no effect on injury rates or workers’ compensation spend. In general, a t-test may be either

two-sided (also termed two-tailed), stating simply that the means are not equivalent, or one-

sided, specifying whether the observed mean is larger or smaller than the hypothesized mean.

The test statistic t is then calculated. If the observed t-statistic is more extreme than the critical

value determined by the appropriate reference distribution, the null hypothesis is rejected. The

appropriate reference distribution for the t-statistic is the t distribution. The critical value

depends on the significance level of the test (the probability of erroneously rejecting the null

hypothesis)

Injury Rate “t-test”

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BeforeAfter

14

12

10

8

6

4

2

0

Block

TR

IR

t-test of TRIR before and after Ergonomic Program initiative

P Value =

0.009

Injury Rate “t-test” before and after implementation of an Ergonomics Program

When the “p-value” is <0.05; then “Significant Change"

p=<0.009

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Regression Analysis

• Simple tool to use

• Can be done on excel

• Testing to see that when you changed “x” . . .

o X = anything i.e. flow, number of BBS

observations, chemical adds, etc.

• . . . That “y” changed positively or negatively

o Y = anything i.e. concentration, number of

injuries, ppm, etc.

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• You implemented a Behavioral Based Safety (BBS) program over a year

ago.

• The VP of Operations said she hasn’t seen any changes in the injury rates

since starting the BBS program.

• The VP of Operations said that it takes too much time to perform the BBS

observations and asked “can we cut the number of BBS observations by

50%?”

• How do you respond to her?

Regression Analysis - Example

BBS Observation Data

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Month

# of Monthly BBS

Observations Monthly TRIR

Jan-12 150 4.75

Feb-12 250 3.60

Mar-12 200 3.85

Apr-12 425 1.65

May-12 375 2.45

Jun-12 400 2.00

Jul-12 125 6.00

Aug-12 410 1.85

Sep-12 250 5.25

Oct-12 355 2.95

Nov-12 180 4.85

Dec-12 150 5.50

Jan-13 425 2.25

Feb-13 365 1.85

Mar-13 420 1.75

Apr-13 400 1.65

May-13 575 1.30

Jun-13 500 0.85

Jul-13 600 0.25

Aug-13 450 1.35

Sep-13 380 1.85

Oct-13 425 1.10

Nov-13 225 4.10

Dec-13 285 2.15

Jan-14 450 1.25

Feb-14 380 1.50

Difficult to tell in a table format. Remember . . . “a picture paints a thousand words”.

Let’s Plot the Data

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Regression Analysis

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Right click to add a “trend line”. Then click add the “R2” Equation. When R2 values are <0.80; then there is NO statistical correlation between the “X” and the “y”. When >0.80 then statistically significant.

Polling Question

39

Now that you’ve seen the data, what do you tell to VP of Operations? Agree to 50% reduction Recommend that we continue as we are Recommend doing MORE observations

Capability Analysis

40

Let’s start by plotting the data in an I&mR chart. The permit limit for BOD at this outfall is 325 mg/l.

May-09Mar-09Jan-09Nov-08Sep-08Jul-08May-08Mar-08Jan-08Nov-07

300

250

200

150

100

Date

Ind

ivid

ual V

alue

_X=189.1

UCL=275.1

LCL=103.1

May-09Mar-09Jan-09Nov-08Sep-08Jul-08May-08Mar-08Jan-08Nov-07

120

90

60

30

0

Date

Mo

ving

Ran

ge

__MR=32.3

UCL=105.7

LCL=0

6

55

1

I & mR Chart for BOD at Outfall #1Permit Limit of 300 mg/L

Looks pretty good right? But how “capable” are we of staying in compliance?

Capability Analysis

41

Take all the data from the SPC charts along with the permit limits to run a “capability analysis”

USL = Upper Spec Limit (Permit Limit). To calculate a “sigma value” take either the Cpk or Ppk and multiple by 3. Here the sigma value = 1.48 X 3 = 4.4 Sigma.

What do the Sigma Levels Mean?

Sigma Level Days between running

“out of compliance”

4.5 1,000

3.0 161

2.0 15

. . . if we took 24 hour composite samples on a daily basis . . .

Capability Analysis

43

What if the city wants to lower your permit limit from 325 to 275? What is your capability at that point?

USL = Upper Spec Limit (Permit Limit). To calculate a “sigma value” take either the Cpk or Ppk and multiple by 3. Here the sigma value = 0.92 X 3 = 2.8 Sigma

44

WWTP Effluent Vital Few Sigma Levels

0.0

0.6 0.7 0.7 0.8

0.9 0.9

1.1 1.1

1.2

1.3 1.3 1.3 1.4 1.4 1.5 1.5 1.5 1.5

1.5

1.7 1.7 1.7

1.8 1.8 1.8 1.8 1.9 2.0

2.0 2.0 2.0 2.0 2.1

2.2 2.2 2.2 2.3

2.4 2.5

2.6 2.6 2.6

2.7 2.8 2.9 2.9 2.9 2.9

3.0 3.1

3.4 3.4 3.5

3.6 3.6

3.7 3.8 3.8 3.8

3.9 3.9 4.0 4.0 4.1

4.1 4.2

4.3 4.4

4.4

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

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Once every

3 days

Assuming composite 24 hour sampling every day, these sites'

constituents will have a permit exceedance on average . . .

Once every

15 days Once every

161 days

Once every

1,000 days

Capability Analysis Summary

45

If you capture data and have a permit limit, you can calculate your capability

oStorm Water

oWaste Water effluent constituents

Metals

BOD

COD

pH

Flow

Etc.

oFence line air monitors

oIndustrial Hygiene exposure monitoring

oDifferential pressure gauge readings

Conclusion

46

1

2

3

In order to bring true business value, you must be “predictive” to become “preventative”. Using simple six sigma tools can assist

Don’t take “statements” and “tribal knowledge” as facts; show me the data!

There are NO “silver bullets” to increase EHS performance that builds business value; but there are many pieces of “silver shot”

In God we trust; all OTHERS bring DATA!

Polling Question

47

Does your company have a formal ‘Six Sigma’ or Lean Six Sigma Program? Yes – I have not participated Yes – I have participated No – My company does not offer a Six

Sigma program

48

1. If your company offers a six sigma program sign up to be a green belt

2. Partner with your quality people, they have the tools to assist you in evaluating your data

3. Add value to your company – Being “predictive” is the best way to be “preventative”

4. If you are not using an EHS MIS to capture your vital data you may be missing out on opportunities to be “predictive” and “preventative”.

Recommendations

Q&A

49

Thank You!

50

For questions about ProcessMAP’s platform solution, please direct inquiries to:

[email protected]

To contact Dean Rossi, please forward all inquiries to:

[email protected]

1301 International Pkwy, Ste 160 Sunrise, FL 33323

Office: 954-515-5040 Email: [email protected]

Visit us at www.processmap.com

mailto:[email protected]



http://www.processmap.com/

using six sigma tools to analyze ehs performance metrics · objectives of the webinar 10 “using...

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