Peter Chen Master Student on Environmental Science Study, PSIL University of Indonesia (UI), Indonesia

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1 Maturity Level of Quality, Health, Safety, and Environment Management System in Coal Mining Activity: Case Study on PT XYZ Coal Processing and Loading Unit Peter Chen Master Student on Environmental Science Study, PSIL University of Indonesia (UI), Indonesia Haryoto Kusnoputranto Departement of Environmental Health, Faculty of Public Health and Postgraduate Program on Environmental Science, University of Indonesia, Indonesia Abstract Restu Juniah Department of Mining Engineering, University of Sriwijaya, Indonesia This paper discuss about the integration of Occupational Health and Safety and Environment management system that refer to ISO and OHSAS by using business process approach from ISO 9001 as the main frame. The purpose of this paper is to know the maturity level of management system in PT XYZ and to discover the potential improvement from the implemented integrated management system. The result show the maturity level of QHSE management system on PT XYZ has already been mature; it could be seen from the questionnaire that 62% respondents says the QHSE management system has already been mature and it also has been certified by the legal certification organization. The potential for QHSE management improvement which could be done by PT XYZ is the socialization procedure. Key word: ISO 9001, ISO 14001, OHSAS 18001, Integrated Management System, The Maturity Level of Management System, Coal Mining Introduction: Sustainable development is a development that one of its considerations focuses on environmental point of view. Conversion of forest activities on one hand is done in order to support sustainable development. However, this activity could adversely affect the environment on the other hand, including air pollution, water pollution, and land degradation. Based on Indonesia Minister of Forestry regulation number 18 year 2011, coal mining activity is one of activities that could alter forest function. One of the reasons the coal mining activity is done is to run the national s economy wheel. The coal mining activity is conducted not only for economy aspect but also for environmental aspect. Energy is needed to support an economy activity and people s productive activity. The necessity of energy in this modern era keeps increasing and becomes more complex and this is not a surprising phenomenon. Miller (2004) has told us that there are three great changes in human civilization, those are (1) agriculture revolution ( years ago); (2) industrial revolution (which has started 275 years ago); and information and globalization revolution (which has started 50 years ago). Information and globalization revolution which we are experiencing could be seen from the increasing consumption of non-renewable resources. The fulfillment of this energy necessity requires an effort to search resources both renewable and nonrenewable. This condition causes the emerging and growing companies that engage in mining, oil, and > RJSSM: Volume: 04, Number: 04, August 2014 Page 18

2 gas area. The carried out activities are exploration, exploitation, and processing the resources in order to supply the demand for energy. PT XYZ is one of companies that are engaged in coal mining industries in Indonesia which has been established since PT XYZ has started its operational activity in 1992 by producing a 1 million ton coal per year. From 1992 through 2012, the management system has not implemented optimally yet because it did not refer to ISO 9001, ISO 14001, and OHSAS in integrated way. Therefore, PT XYZ developed an integrated management system that is QHSE management system thatrefers to ISO 9001, ISO 14001, and OHSAS at the end of 2012 as an effort to achieve environmentally friendly mining activities. Therefore, this paper focuses on the maturity level of the implemented QHSE management system. Management system is a set of interconnected and interacted elements to establish policy and objectives and to achieve those objectives. The definition of quality management system is a management system to direct and control an organization related to quality (ISO 9000, 2005). Environmental management system is part of management system of an organization which is used to develop and implement its environment policy and to manage its environmental aspects (ISO 14001, 2004). Occupational health and safety management system is part of an organization s management system which is used to develop and implement occupational health and safety policy and to manage its occupational health and safety risks (OHSAS 18001, 2007). ISO 9001 (2008), ISO (2004), and OHSAS (2007) introduce a methodology which is known as Plan-Do-Check-Action (PDCA) and could be applied into all processes. This PDCA approach then will be used as a reference or guide to develop an integrated management system that is Quality, Health, Safety, and Environment Management System (QHSEMS). PAS 99 (2012) offers a fulfillment of the requirements of a management system that requires an analysis of the implementation of each requirement in detail and compare it with elements that have been incorporated into an integrated management system. The methodology used in PAS 99 also uses the similar methodology from other management system that is PDCA where P includes context of organization, leadership, planning, resources, competence, awareness, communication, information documented; D includes operational planning and control; C includes evaluation of organization s performance; and A includes improvement and corrective action toward nonconformity. ISO 9001 regarding to Auditing Practices Group (2009) provide an approach to analyze the maturity level of a management system. The analysis is referring to a zone level of maturity of the existing management system in the ISO Zutshi&Sohal (2005) says that the integration of stand-alone management system into one management is important to achieve the realization of potential advantage of each management. This is also confirmed by Abrahamsson, Hansson, &Isaksson that the integration of management system brings more advantages than disadvantages. Implementation and certification of ISO 9001, ISO 14001, and OHSAS could give advantages to organization and contribute to a sustainable development. The most significant advantage is the simplify certification process, to reduce management cost, and to reduce paper work (Xing, Tam, & Le, 2010). The advantages of implementation of integrated management system which could be achieved by organization are (1) improving business focus; (2) a holistic approach to manage business risks; (3) reducing conflict between individual management systems; (4) reduce duplication and bureaucracy; (5) > RJSSM: Volume: 04, Number: 04, August 2014 Page 19

3 easier facilitation of the requirements of any new management systems that the organization would like to adopt. Methodology This study used qualitative approach by using field observation, literature study, and survey by questionnaire and in depth interview. The data used in this study consists for secondary data like literature related to QHSEMS and company s document; and primary data like gap analysis, field observation, questionnaires, and interview results. Questionnaires were distributed to employees, 14 employees, of PT XYZ section QHSE and management representative in Coal Processing and Loading unit and validation of the questionnaire is conducted by interviewing 7 employees. Questionnaires were developed based on ISO 9001, ISO 14001, and OHSAS by using PDCA approach and started from company s QHSE policy. The questionnaires were developed and distributed to QHSE Section employees and management representative in order to see their perception toward the implementation of PT XYZ s QHSEMS condition. After the questionnaires results are obtained then they were processed and tabulated to obtain the percentage of implementation of QHSEMS condition. The next step after the questionnaires have been collected and tabulated is to conduct an in depth interview. This in depth interview is to validate gap analysis, field observation, and the result of questionnaires. The result was then analyzed by referring to the level of maturity zones which could be found in ISO 9001 in order to know the maturity level of QHSEMS of PT XYZ and the potential improvement. Result Production of mining activity is increasing averagely, especially coal mining production as presented in Table 1 below. The more mining activities are increasing, this could potentially increase the environmentally impact that may arise from such activities. Therefore, one way to map aspects of environment and manage it properly is through implementation of Quality, Health, Safety, and Environment Management System. Table 1 The production of some minerals in Indonesia from Year No Types of Mines Unit * 1 Crude Oil Barrel Natural gas 1 MMSCF Tin concentrate ton Coal ton Bauxite 000 m.ton Nickel ore 000 m.ton Gold kg Silver kg Copper concentrate m.ton Granite m.ton Tin Metal m.ton Source : BPS Statistik Indonesia. 1 Kementerian ESDM, 2012 Note : *Temporary number except oil, natural gas, and coal. 2 m.ton = metric ton Based on the result of gap analysis to see the practical application of QHSEMS and the result of questionnaire which were distributed to the employees, it shows that PT XYZ has implemented and > RJSSM: Volume: 04, Number: 04, August 2014 Page 20

4 operated the QHSEMS into its activity in Coal Processing and Loading (CPL) unit. The survey was conducted to level of general manager, manager, system development & improvement section head, R&D and compliance section head, CPL section head, supervisor, foreman, and non-staff, and also an architect who developed this integrated management system in CPL unit with total respondents of 14 employees. These questionnaires were used to analyze the QHSEMS and its implementation.table 2 present the result of questionnaires about implementation of QHSEMS: Table 2 QHSEMS implementation No Remarks Percentage Quality, Health, Safety, and Environment Policy 0% 31% 69% 2 Planning 1% 43% 56% 3 Do 2% 49% 49% 4 Check 1% 42% 57% 5 Action 2% 48% 50% Source:Research result, = bad, 2 = less, 3 = good Positive response is shown for quality, health, safety, and environment policy which is 69% respondents said the implementation has been good. The challenges faced by the employees regarding to this policy are preparation and establishment of company s objectives and target and also communication of this policy to all employees and external party. A quite positive response is shown for planning that is 56% of respondents said the implementation of QHSEMS in planning stage has been good. The challenges faced by the employees are (1) the ongoing management system is still paper base; (2) the possibility of misidentify of QHSE aspects; (3) there are activities which pay less attention to QHSE; (4) the planning was not in line with budget cycle which has been determined by the company; (5) lack of socialization or communication quality regarding to QHSE to all employees; (6) the plan was still less realistic; and (7) there were no scale of priority to perform activities. A quite negative response is shown for implementation that is only 49% of respondents said the implementation of QHSEMS in implementation stage has been good. The challenges faced by the employees are (1) lack of both quality and quantity of human resources; (2) the information system is still paper based; (3) the training has not been given evenly; (4) there are still one employee do more than one job; (5) employees knowledge and understanding toward QHSEMS still low; (6) recruitment process is stilllacking of incorporating QHSE element; (7) supervisors were lack of analysis to map out the necessary training for his workers; (8) the hectic work schedule; (9) the absence of a comprehensive procedure of socialization regarding to QHSEMS; and (10) lack of communication of corporate documents by supervisors and foremen. A quite positive response is shown for check and corrective action that is 57% of respondents says the implementation of QHSEMS in check stage has been good. The challenges faced by the employees are (1) lack of employees knowledge and understanding toward QHSE; (2) lack of worker s consistency to perform monitoring and measurement; (3) the analysis of the results of monitoring and measurement is less and weak; (4) the dissemination results of monitoring and measurement is less and slow to workers; (5) lack of follow up on the findings of the inspection; (6) lack of preventive action; (7) the discipline of employees to do recording are low; and (8) lack of rooms to store records. A quite positive response is shown for management review that is 50% of respondents said the implementation of QHSEMS in act stage has been good. The challenges faced by the employees are (1) the results of management review are less communicated or informed to employees (at least it > RJSSM: Volume: 04, Number: 04, August 2014 Page 21

5 could be communicated to level of supervisor and foreman); and (2) the way of delivering information of management review results to Board of Directors did not focus. The questionnaires result in Table 2 consists of quality, health, safety, and environment management system and also its implementation in practice. The maturity level of the implemented QHSEMS is shown in Table 3 below: Table 3 The maturity level of PT XYZ s QHSEMS No Remarks Percentage QHSE policy. 0% 29% 71% 2 QHSE aspects. 0% 29% 71% 3 Legal and other requirements 2% 36% 64% 4 Objectives, targets, and program(s) 0% 29% 71% 5 Training, awareness, and competence. 0% 52% 48% 6 Communication. 0% 29% 71% 7 Documentation. 0% 36% 64% 8 Control of document. 0% 57% 43% 9 Operational control. 0% 47% 54% 10 Emergency preparedness and response. 1% 45% 54% 11 Monitoring and measurement. 0% 29% 71% 12 Evaluation of compliance. 0% 43% 57% 13 Nonconformity, corrective action, and preventive action. 0% 36% 64% 14 Records. 0% 54% 47% 15 QHSEMS audits. 0% 14% 86% Sources:Result of research, = immature; 2 = less mature; 3 = mature Total 0% 38% 62% Table 3 above is a result from PT XYZ employees perception regarding to maturity level of quality, health, safety, and environment management system. The criteria discussed is about Standard Operating Procedure (SOP), Work Instruction (WI), Job Safety Analysis (JSA), QHSE programs, QHSE forms, QHSE manuals, and QHSE policy. Discussion The integration management system done by PT XYZ is to integrate ISO 9001, ISO 14001, and OHSAS into one management system with business process approach. This facilitates PT XYZ to perform certification because there are several similar clauses from ISO 9001, ISO 14001, and OHSAS which could be integrated; for examples the clauses for documentation, control of document, internal audit, management review, et cetera. In addition, integrated management system could also reduce administrative works such as in Hazard Identification and Risk Assessment (HIRA) documents. HIRA is compiled by integrating between environment and health and safety into a single document. This is in line with what was described by Xin, Tam, and Le (2010) that is one of the advantages of integrated management system is to simplify certification proses and to reduce administrative work. Based on Table 3 above, the maturity level of PT XYZ management system could be identified. The result shows average of 62% of respondents said that the QHSEMS has been mature. Referring to ISO 9001 Auditing Practices Group (2009), it could be stated that QHSEMS in PT XYZ could be categorized as a mature one. This is because the policy, SOP, WI, JSA, manuals, QHSE programs, > RJSSM: Volume: 04, Number: 04, August 2014 Page 22

6 QHSE forms, and so on has reached the minimum requirement of ISO 9001, ISO 14001, and OHSAS This is to proven by external audit which is conducted by a legal certification organization and they declare PT XYZ has successfully implement the integrated management system by certifying PT XYZ certificates of ISO 9001, ISO 14001, and OHSAS However, the study finds that the SOP regarding to communication / socialization is not comprehensive. The procedure does not explain in detail how information provider provides information properly so the recipient could fully receive and fully understand the information. Conclusion Based on the analysis of QHSEMS implementation and its maturity level, it could be concluded that (1) PT XYZ has been implementing integrated management system based on ISO 9001, ISO 14001, and OHSAS 18001; (2) the maturity level of its integrated management system has been mature because the minimum requirement of the three standards has been fulfilled; and (3) the main challenge faced by the employees in implementing QHSEMS lies on the procedure of communicating QHSEMS. Acknowledgements Special thanks to PT XYZ which has given opportunities and valuables helps so this paper could be done properly. Special thanks also to all employees of PT XYZ that has contributed to this research. References 1. Abrahamsson, S., Hansson, J., & Isaksson, R. (n.d.). Integrated Management Systems - advantages, problems and possibilities. Retrieved March 24, 2014, from 2. BPS - Statistik Indonesia, B. (2012, Agustus). Statistik Indonesia - Statistical Yearbook of Indonesia Retrieved Juli 1, 2013, from 3. ISO 14001, T. (2004, November 15). Environmental management systems - Requirements with guidance for use. Retrieved Februari 4, 2014, from 4. ISO 17021, T. (2006, September 15). Conformity assessment - Requirements for bodies providing audit and certification of management systems. Retrieved April 21, 2014, from 5. ISO 9000, T. (2005, September 15). Quality manaagement systems - Fundamentals and vocabulary. Retrieved April 11, 2014, from df 6. ISO 9001 Auditing Practices Group. (2009, Juni 5). ISO 9001 auditing practices group guidance on: How to add value during the audit process. Retrieved April 21, 2014, from 7. ISO 9001, T. (2008, November 15). Quality management systems - requirements. Retrieved Februari 3, 2014, from df 8. Kementerian ESDM. (2012, Agustus 29). Statistik Batubara Retrieved September 10, 2013, from 9. Miller, J. G. (2004). Living in the Environment: Principles, Connections, and Solutions. Canada: Thomson Learning, Inc. > RJSSM: Volume: 04, Number: 04, August 2014 Page 23

7 10. OHSAS 18001, O. (2007, Juli). Occupational health and safety management systems - Requirements. Retrieved April 11, 2014, from PAS 99, P. (2012, September). Specification of common management system requirements as a framework for integration. Retrieved April 11, 2014, from Xing, Z. S., Tam, V. W., & Le, K. N. (2010). Towards Effectiveness of Integrated Management Systems for Enterprises. Engineering Economics, Zutshi, A. &Sohal, A.S. (2005).Integrated management system - The experience of three Australian Organisations.Journal of Manufacturing Technology Management, > RJSSM: Volume: 04, Number: 04, August 2014 Page 24