Safety in Capital Projects -
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1 Safety in Capital Projects - IGS HSSE Seminar 2015, Surabaya Animan Inoe Program Leader DuPont Sustainable Solutions
2 Core Value
3 OUR PURPOSE DuPont is a Science Company We work collabora=vely to find sustainable, innova=ve, market- driven solu=ons to solve some of the world s biggest challenges, making lives beher, safer, and healthier for people everywhere.
4 DuPont s Journey DuPont Has Evolved Over Two Centuries CHEMICALS INTEGRATED SCIENCE EXPLOSIVES Engineering Polymers 1935 Nylon 1936 Lucite Acquires 1966 Tyvek Pioneer Hi-Bred 1967 Nomex 1972 Electronics Expansion 2003 Solae Joint Venture E.I. DuPont 1805 Core Values 1804 First Powder Mill 1880 First Dynamite 1903 Experimental Station 1915 Plastics 1917 Making Dyes 1923 Cellophane 1924 Rayon 1924 Films Business Begins 1928 Chemical Expansion 1952 Mylar 1961 Tedlar 1962 Lycra 1965 Kevlar 1986 Corian 2000 Sorona Bio Based Polymer 2011 Acquires Danisco 2012 Acquires 100% of Solae 2013 Completes Sale of Performance Coatings Business and Announces Plans to Separate Performance Chemicals
5 Outline 1 Changing Scenario Impact of SHE on Projects 2 CriGcal Success Factors 3 EffecGve ImplementaGon 4 Results
6 Increasing Impact of SHE in Projects Oil & Gas companies views on project performance funcgons Safety impact in context Multiple Safety Incidents - delay in project commissioning Major safety Incidents resulted in weak financial performance Multiple Incidents resulting in closure of the site from weeks to months multiple infra projects Source: Booz Allen Hamilton Safety records & Environmental impact - global Investors sounding out concerns on funding - leading Industrial conglomerate
7 Cri=cal Success Factors
8 Benchmark in IRR of Projects Cost & Schedule Internal Rate of Return Safety Safety According to IPA, DuPont s project cost & schedule performance allows it to exceed its IRR target by an additional 1.5% by consistently completing projects cost-effectively and quicker than others Source: 2006 IPA International Benchmark Conference
9 Influence Opportunity
10 Safety considera=ons must begin early in the conceptual phase of the project 10
11 The DuPont project methodology reflects the key players and their evolving roles in each of the project stages Investment decision Set- up Project OrganizaGon FEL, Design, ConstrucGon & delivery of asset TransiGon to OperaGons OperaGons & ProducGon Asset ReGrement Front-End Loading OCP/DuPont Leads OCP/DuPont Audit/Support Execution / Operation OCP/DuPont Leads Contracor Involved CAPITAL PROJECT PROCESS Contractor Executes Contractor Supports ONGOING OPERATIONS Legend DFEP STAGE Capital Effectiveness Deliverables Safety, Health & Environmental (SHE) and Process Safety Management (PSM) integration 11
12 Example DuPont Project System SHE Integration through out project life cycle Process Hazards Environmental Energy Electrical Classification Safety, Occupational Health, and Fire Protection Relief Devises PSM Critical Equipment Ergonomics Gate Keeping
13 A solid Contractor Management System is a key 1.0 GOVERNANCE 2.0 LEADERSHIP & SKILLBUILDING 3.0 WORKFORCE CULTURE 4.0 GOALS, OBJECTIVES & PLANS 5.0 PERFORMANCE MANAGEMENT 6.0 ASSESSEMENT, ANALYSIS & IMPROVEMENT 7.0 APPRAISAL & RENEWAL 1.1 owner Contractor relationship 1.2 Top-Down Buy-In Documented Commitment Performance Metrics Communication Planning 1.3 Safety Management Identified Roles & Responsibilities Processes For Improvement 2.1 Leader Development Hra, Jsa & Psm Observation & Feedback Incident Investigation 2.2 Safe Constructi- Bility 2.3 Employee Training Orientation & Expectations Work Scope & Job Plan Review 3.1 Engaged Site Mgmnt. Priority 3.2 Core Value Organization Development 3.3 Interactive Communication 3.4 Interdependent Processes 3.5 Behavior- Based Recognition 3.6 Peer Level Training 4.1 Goals & Targets Identified Essential Elements Supported By Objectives Plan Documentation Metric Targets Defined 5.1 Daily Tool Box & Periodic Communcation Emergency Response Review Written Work Instructions 5.2 Injury / Incident Investigat. & Corrective Action Process 5.3 Inspection Process: Area Daily, Site Periodic, Tools & Equipment 6.1 Job Plans & Jsas Refined 6.2 Metrics / Kpis Applied To Continuous Improvement Process 6.3 Injury / Incident Corrective Action Executed 6.4 First Party Audits Conducted 7.1 Cm / Owner Review - Post Contract Metrics 7.2 Cm / Owner Assess Contractor Continuous Improvement Execution 7.3 Cm / Owner Review Incident / Injury History & Ca Process 7.4 Contractor Graded For Future Contract Consider. Periodic & Recurrent Training CSMDiscipline0311.EMK-rev4.doc 03/2011 For internal use only Permit Review / Verification Lock-Out, Tag-Out Review / Verification Contractor Reviews Results For Continuous Improvement 13
14 Comprehensive Methodology for Contractor Safety Performance Improvement
15 Framework for Effec=ve Implementa=on Governance Process Project Systems & Processes Capability Building Mindset and Behavior Vision clearly driven by leadership at the top Public commitment, goals and metrics, performance management Integrated governance structure Decision making processes and systems Foundational processes, standards, tools, best practices Continuous technical improvements Value release quick wins Implements Learning & Development programs to first fasttrack and then sustain capabilities Implements culture of Sustainability & Excellence across the whole organization using structured approach Engagement Communications, recognitions Collaboration & innovation
16 Results for DuPont USD 1.8 Billion/annum Results Metrics 2012 IPA Comments Quintiles Safety Safety Performance Best in Class * without cash constrained projects Best in Class = Quintile 1 FEL Duration Cost Index Schedule Index * Costs Performance is Improved Estimates are Getting Tighter Schedules Remain Longer w/cash Flow Constraints
17 THANK YOU Copyright 2015 E. I. du Pont de Nemours and Company. All Rights Reserved.The DuPont Oval, DuPont, The miracles of science and all products denoted with or are trademarks or registered trademarks of DuPont or its affiliates. 17
18 Indian Scenario Step change in contractor safety over last few years Need to con=nue the progress and sustain the improvements Lot of investment in training as well as managing the work Applica=on of global best prac=ces can be improved eg. Constructability, contractor management Significant opportunities exist to integrate SHE in design and engineering stage
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