Joint Operations (JO) Contactor Health Environment and Safety Management (CHESM) Standardized Operational Excellence (OE) Process

Transcription

1 Joint Operations (JO) Contactor Health Environment and Safety Management (CHESM) Standardized Operational Excellence (OE) Process Approved 23 May 2007 Reviewed 1 May 2010 Version 1.1 Version 11. Revised 1 May JO_JO_GU_CHESM_Process-Final.docx

2 Contractor HES Management (CHESM) Contents 1.0 Process Overview Procedures Resources, Roles, and Responsibilities Measurement and Verification Continual Improvement Document Control Information Document List Process Overview 1.1 Purpose and Objectives The purpose of the Contractor Health, Environment and Safety Management (CHESM) process is to establish clear accountabilities, ensure active engagement of contractors, and provide a consistent CHESM program to eliminate health, environment and safety (HES) incidents and injuries among contractors. 1.2 Scope This process defines a framework for Contractor Health, Environment and Safety Management and applies to all contractors working within the operational control of Joint Operations. A contractor is defined as any company or individual that is under contract or sub-contract that performs work or provides services to or for JO Operational Control Contractor employees working on JO premises are within JO operational control. JO premises are locations, equipment, activities, or projects that are owned, operated, leased, or controlled through rights secured by Joint Operations. The JO Operational Control document provides description of the interpretation of operational control within the context of OE processes for Joint Operations Sub-Contractors For the purpose of this CHESM process, sub-contractors are considered part of the contractor workforce; therefore, this process does apply to sub-contractors. However, it is the responsibility of the main contractors to ensure that their sub-contractors meet the JO process requirements Contractors Not Covered by the CHESM Process This process is not intended to be applied for personal service contractors (one-person contractor firms or individuals directly contracted by JO). Other contractors are not covered by the CHESM process if, following an evaluation conducted by the JO HES Representative and JO Contract/Supply Chain Manager and based upon their contract approved services, they meet all of the following criteria: low risk, do not perform 2 Version 1.1. Revised 1 May 2010.

3 physical or safety sensitive work, are in JO operational control less than seven days per year, and are accompanied by JO employees when under operational control. This coverage will be re-evaluated if there are any changes in the contract approved services. JO shall determine the HES process and procedures applied to personal service and other contractors not covered by the CHESM process Risk-Based Approach This process applies to all contractors within JO operational control; however, resource allocation for process implementation and management should be prioritized to those contractors performing high- and medium-risk work for JO. Some procedures within this process are designed for contractors performing high- or mediumrisk work and are not required for contractors performing low-risk work. Details about the applicability of each procedure are provided in the procedure documents. The risk classification of work associated with the individual contract shall be determined by JO using the CHESM Risk Classification of Work Associated with Contracts matrix. The following should be considered when classifying the risk associated with a contract or similar contracts: Potential consequence or impact o Type/Nature of the work to be performed o Location of the work to be performed o Type/Nature of workplace hazards or impact Likelihood o Duration of the work to be performed o Frequency/quantity of use of contractor o Contractor s experience and expertise in performing similar type work o Potential for exposure to worksite hazards o Potential for the contractor performing the work to expose themselves, other contractors, or Company employees to hazards o Prior experience 1.3 OE Expectations Met This process meets OE Expectations Element 6: Third-Party Services, which is listed below: Systematically improve Third-Party Service performance through conformance to Operational Excellence. 6.1 A process is in place to ensure that third-party service suppliers perform to safety, health, environment and reliability requirements consistent with those required of company employees when working on company property and when providing services for the company off company property in operational control. 6.2 A Contractor Safety Management (CSM) process is in place that clearly establishes accountabilities to include: Identification of company contract owners (or management sponsors) accountable for each contract. Active engagement of contractors in implementing and improving the CSM program. A contractor qualification and selection process which addresses safety performance. Version 1.1. Revised 1 May

4 Pre-job work reviews and actions during work to verify scope of work, reinforce expectations and monitor compliance to requirements. Periodic evaluation of contractor safety performance and assessment of the CSM program. 1.4 Joint Operations Requirements To comply with this process, JO shall meet the following requirements: 1. JO shall maintain a CHESM Leadership Team (CHESM-LT) designed to ensure effective operation of the CHESM process. 2. Contracts shall be assigned a Contract Owner who is accountable for HES performance of the contract. Similarly, JO shall identify a management representative of each contractor firm (Contractor Management Representative) who has authority for the contractor firm represented. 3. A set of key performance indicator targets shall be established and monitored for each high- and medium-risk contract and agreed to by the Contract Owner and the Contractor Management Representative. 4. Contractor engagement activities designed to build HES culture for all levels of contractor personnel shall be established, conducted, and monitored. 5. Each contractor considered for selection shall be assigned an HES rating based on the scope of services as specified in the contract(s) according to the qualification procedure. Selection of contractor shall include consideration of the contractor's current HES rating and capability. 6. A JO standard HES exhibit outlining HES expectations shall be included in each contract. This JO HES exhibit shall be aligned with the Global Upstream standard HES Exhibit. 7. Pre-job activities shall be held before the start of work to ensure that contractors have the appropriate procedures, risk identification, and mitigation plans in place. 8. Interim contractor performance review shall be conducted, at a minimum, annually for high- and medium-risk contractors or more frequent if significant events warrant review. 9. End-of-contract HES performance evaluation shall be completed for every contract within one month of the end of the contract period. 1.5 Linkages to Other OE Processes CHESM is linked to these OE processes: Incident Investigation and Reporting Emergency Management Behavior-Based Safety Risk Management Motor Vehicle Safety Leadership Accountability Contracting & Procurement Plan Contract Review Committee Category Management 1.6 Precedence of Local Regulatory Requirements Local regulatory requirements shall take precedence in the event of a conflict between CHESM Process requirements and local regulations. 4 Version 1.1. Revised 1 May 2010.

5 2.0 Procedures 2.1 Overview The procedures within this CHESM process are structured as follows: Leadership roles and accountability Active contractor engagement Qualification and selection Pre-job review Work in progress End-of-contract evaluation Business planning Quality fitness review Training material 2.2 Details Each section below links to a document or procedure related to CHESM Leadership Roles and Accountability Title: JO CHESM Leadership Roles and Accountability Procedure Description: Required. This procedure consists of two sections: Establish a Contractor HES Management Leadership Team (CHESM-LT) Assign a Contract Owner for each contract A CHESM-LT is a leadership team within JO whose primary functions are to ensure effective implementation of the CHESM process and to drive leadership behaviors for achieving an improved contractor HES performance. JO may use an existing team or committee, such as the OE Leadership Team or Contract Review Committee, to perform the roles and responsibilities of the CHESM-LT. The JO CHESM-LT shall conduct its meetings at least once per quarter. Subjects to be addressed in the meetings are listed in the procedure. A Contract Owner is a JO employee or designated individual who is assigned to specific contract/s to ensure that the HES aspects of those contracts are properly managed. The assignment of the Contract Owner shall be appropriate to the risk level of the assigned contract. The Contract Owner shall be held accountable for the HES performance of the assigned contract. Responsibilities of Contract Owner are listed in the linked procedure. In parallel, each contracting firm shall identify a management representative who shall be the primary contact person for the Contract Owner. This Contractor Management Representative shall be an individual who has local authority for the contractor firm represented and who can effect change in the contractor firm s organization. The Contractor Management Representative is intended to be someone in a leadership role that can speak directly for the contract firm and make commitments on budget and resource allocation. JO shall maintain up-todate documentation of their Contractor Management Representatives Active Contractor Engagement Title: (there is no procedure document) Description: The objectives of the contractor engagement activities include: Version 1.1. Revised 1 May

6 Ensuring that contractors are working toward the same HES goals as JO for incident- and injury-free operations Ensuring that contractor management takes ownership in communicating and implementing applicable HES procedures Engaging multiple levels of contractor personnel, from their management representatives to the persons doing the work, by providing means for JO and its contractors to have open dialogue and address issues creating an environment for two-way communications. Ensuring that all levels of contractor personnel managers, front-line supervisors, and contract field employees are well informed of The Chevron Way values, Tenets of Operation, and the stop work authority. Contractor engagement activities shall be conducted throughout JO s interaction with a contractor before starting work, during work in progress, and after completion of the contract, project, or job. JO is responsible for identifying, conducting, and monitoring engagement activities appropriate to the risk level of the contractor. These engagement activities are listed in the JO CHESM Contractor Engagement Activity Table. Further description about each of these activities is provided in the attached procedures through Business Planning Title: JO CHESM Business Planning Procedure Description: Recommended. The business planning procedure ensures that HES considerations are included as part of the annual contract planning process. This step ensures early identification of potential HES issues and puts a plan in place to address them. Contract Owners and the Contract/Supply Chain Manager, assisted by the HES Manager, are responsible for the business planning procedure Qualification and Selection Title: JO CHESM Contractor Qualification and Selection Procedure Description: Required. The purpose of a contractor qualification and selection procedure is to screen contractors for selection based on their likelihood to meet JO s HES performance and process expectations. Contractor qualification and selection consists of the following activities: Contractor HES qualification Contractor selection Every contractor considered for selection shall complete a JO-standardized HES qualification questionnaire prior to initiating work and updated as required by JO. The JO questionnaire shall address the core questions listed in the JO CHESM Qualification Questionnaire Core Questions. Additional questions, pertinent to specific country/local regulations, requirements, and type of work, may be included. The qualification questionnaire response of each individual contractor is valid for no longer than three years. Specific for contractors providing service for high-risk work, the qualification questionnaire data shall be updated every two years. Individual contractors shall be assigned a HES rating of A, B, C, D or F. The HES rating shall be determined by the appropriate JO personnel assigned to Contractor HES management and based on the following components: 6 Version 1.1. Revised 1 May 2010.

7 Total Recordable Incident Rate (TRIR) HES qualification questionnaire Work in progress reviews Field or onsite inspections End-of-contract evaluations or ongoing working relationship For those contractors who are new to JO and do not have any previous data, the HES qualification questionnaire and incident rate data shall count for 100 percent of the evaluation to determine the HES rating. Further detail about this HES rating is provided in the procedure document. JO shall develop a Standard Contract HES Exhibit. The standardized HES exhibit and additional specific HES requirements and metrics agreed upon by the company and contractor shall be communicated to the contractor management representative and included in the signed contract document. The contract/supply chain manager, in interaction with Contract Owners and assisted by the JO contractor HES Representative, is responsible for this procedure Pre-Job Review Title: JO CHESM Pre-Job Review Procedure Description: Required. The pre-job activities are intended to ensure that contractors have the necessary procedures, risk identification, and mitigation plans in place, before work starts, in order to do the work safely. Pre-job activities consist of the following elements: Pre-job meeting Project/Job safety plan Pre-mobilization review Short-service employee (SSE) program Contractor orientation program Site-specific orientation The Contract Owner, or his or her delegate, is responsible for this procedure Work in Progress Title: JO CHESM Work-In-Progress Procedure Description: Required. The purpose of the work-in-progress activities is to ensure: Contractors are implementing the HES processes and plans as written in the contract HES exhibit and as discussed during the pre-job activities. Ongoing communication between JO and contractors at various levels of the organizations. Cooperation between JO and contractors for continuous improvement and in dealing with unforeseen or emerging issues. If done correctly, these activities will reinforce HES culture among the workforce and build shared ownership between JO and contractor firms for achieving incident-free operations. Work-in-progress activities include the following elements: Interim reviews Field inspections Version 1.1. Revised 1 May

8 Audits Management field visits Contractor safety meetings Tailgate/Toolbox meetings Contractor forums Contractor improvement teams The responsibility for this procedure varies from activity to activity; detail is provided in the procedure document End-Of-Contract Evaluation Titles: JO CHESM End-Of-Contract Evaluation Procedure Description: Required. The purpose of the end-of-contract evaluation is to formally review the HES performance and practices of a contractor throughout the duration of a contract and to capture lessons learned and best practices for improving HES performance of future work and future contractor selection. In addition, the contractor performance data shall be used to update the contractor qualification database. The tool used for documenting this end-of-work review is the JO CHESM Interim and Post-Job Evaluation Form. This tool is intended to be the same as the evaluation used for the interim performance review to reinforce the message conveyed during the interim review. The Contract Owner, with participation of the supply chain representative, is responsible for this procedure Training Title: JO CHESM Training Material Description: All leaders in JO who have contractors in their work unit, as well as all HES and contract/supply chain personnel dealing with third-party services shall be required to go through a training session to ensure understanding of this process and its requirements. Support materials will be provided to the CHESM Community of Practice Glossary Title: JO Glossary of CHESM Terms Description: This document contains definitions for the major terms used in the CHESM process. 8 Version 1.1. Revised 1 May 2010.

9 3.0 Resources, Roles, and Responsibilities Table 1: Key Process Roles Role Name Title GU CHESM Process Sponsor: Dave Connor Upstream Capability GM Supply Chain Management GU CHESM Process Advisor: JO CHESM Process Sponsor: JO CHESM Process Advisor: Prapan Limlek Upstream Capability HES Workforce Safety and Health Team Leader Jeff St. Clair Austin Baird Supply Chain Management Advisor Senior CHESM Engineer The following table outlines the roles and responsibilities associated with this process. Version 1.1. Revised 1 May

10 Table 2: Responsibilities and Competencies Role Responsibilities Competencies JO CHESM Process Sponsor Serve as JO advocate of the process to ensure that it is understood and used as designed within JO. Advise the Approval Board on any exceptions requested to this process Conduct an annual review of process effectiveness and efficiency within JO Fluency in the Operational Excellence Management System Ability to provide vision and strategic direction Understanding of the CHESM process Understanding of the components of the OE process model 10 Version 1.1. Revised 1 May 2010.

11 Role Responsibilities Competencies GU CHESM Process Advisor Be fluent in the CHESM process Manage the CHESM Community of Practice, including facilitate the mentoring and coaching among the SBU process advisors Assure the development and availability of Process SMEs and other necessary resources to support the process Evaluate the results of the SBU s review and audit of process effectiveness Evaluate SBU metrics, perform trend analysis across Global Upstream (GU) and report on SBU performance Develop and implement an annual audit plan. Audit the SBUs against their implementation plans and against the process requirements Facilitate changes in process design to enhance effectiveness, including obtaining necessary governance approvals Evaluate the design of the process at least every three years and update if necessary Benchmark GU against other internal organizations, competitors, and top performers in other industries Identify emerging issues related to the process Ensure that this OE process is kept current Provide subject matter expertise Conduct performance reporting and trend analysis for GU Facilitate GU changes in the process or technology Extensive experience and knowledge of the CHESM process Facilitative leadership skills Analytical and planning ability Understanding of continual improvement Understanding of the OE process model components Version 1.1. Revised 1 May

12 Role Responsibilities Competencies JO CHESM Process Sponsor Serve as an advocate of the process with JO and asset management to ensure that it is accorded the appropriate priority and receives funding, personnel, and other resources Ensure that process effectiveness and efficiency are measured and verified at least annually Allocate resources to operate and improve the process Be accountable for progress on the Continual Improvement Plan Coordinate with other GU OE process sponsors within JO and link with the JO business plan Fluency in the Operational Excellence Management System Ability to provide vision and strategic direction Understanding of the Contractor HES Management Process Understanding of the components of the OE Process Model JO CHESM Process Advisor Coordinate and lead the CHESM process Ensure that this OE process is kept current Control the CHESM process documentation and records Provide subject matter expertise Coordinate or support process measurement and verification Develop and implement the Continual Improvement Plan Conduct performance reporting and trend analysis Extensive experience and knowledge of the CHESM process Facilitative leadership skills Analytical and planning ability Understanding of continual improvement Understanding of the OE Process Model components 12 Version 1.1. Revised 1 May 2010.

13 Role Responsibilities Competencies Contract Owner Ensure that HES requirements of the contract are properly managed Set and communicate annual key performance target agreed to by the contractor management representative where applicable Ensure that the contractor qualification and selection is completed Ensure that necessary pre-job activities are completed before the start of work Ensure work-in progress and evaluation activities are completed as required Ensure that mitigation plans are established and completed in a timely manner Participate, as necessary, in CHESM activities including planning, qualification, selection, pre-job reviews, work-in-progress activities, and evaluations Identify candidates for HES performance recognition in partnership with category manager/category specialist and HES representative Share best practices and lessons learned with other Contract Owners Understanding of the CHESM process Understanding of contract and compensation terms and contractual incentives applicable to his/her assigned contracts Contract/Supply Chain Manager Manage the contractor qualification and selection process Work with Contract Owners to ensure that HES requirements of active contracts are properly managed Ensure update and maintenance of contractor qualification database. Understanding of the CHESM process Understanding of contracting processes Version 1.1. Revised 1 May

14 Role Responsibilities Competencies Category Manager / Category Specialist Line/Unit Manager Assure consistency in HES ratings and risk assessment across product service lines Facilitate advanced supplier relationship teams Influence contractor compliance to HES performance agreements Facilitate contractor selection teams, ensuring that HES performance is evaluated and used in the selection Identify candidates for HES performance recognition in partnership with Contract Owner and HES representative Participate in the contractor HES problem resolution process Work with the Contract Owner in setting and managing key performance target Communicate contracting requirements to contract/supply chain manager Participate in pre-job meetings and project/job safety plan review Ensure pre-mobilization review and contractor orientations are completed before starting work Participate in interim field reviews, management field visits, and field inspections. Understanding of the CHESM process Understanding of contracting processes Understanding of the Category Management Process Understanding of the CHESM process JO Contractor HES Representative Assist the contract/supply chain manager on contractor qualification and selection activities, including determining contractor s HES rating Assist the Contract Owner in prejob and evaluation activities Provide counsel to the line/unit manager in conducting work-inprogress activities. Collect contractor HES KPIs Identify candidates for HES performance recognition in partnership with Contract Owner and category manager/category specialist Understanding of the CHESM process 14 Version 1.1. Revised 1 May 2010.

15 Considering the number of roles associated with the CHESM process and the varying involvement of the roles for individual procedures, the roles and responsibilities specific to the CHESM process are outlined in a separate table. An example table is provided in the CHESM Roles and Responsibilities Matrix. JO should develop a roles and responsibilities chart that matches their organizational structure and design 4.0 Measurement and Verification 4.1 Measurement The following metrics shall be tracked to determine that the CHESM process is effective in meeting its stated purpose. Measures shall include the following: Leading Measures Percentage of contracts using A or B rated contractors: The percentage value is calculated from: Active Contracts Having A or B Rated Contractors Total Number of Active Contracts Requiring an HES Rating The purpose of this metric is to measure the use of highly qualified contractors compared to the overall number of contractors used within JO. The ultimate objective is for 100 percent of the contractors used by JO to be either A- or B- rated contractors. The HES rating of contractors is defined in detail in the qualification procedure. Percent compliance with Interim Review requirements: The percentage is calculated from: Total Number of Interim Reviews Conducted Total Number of Reviews Required The purpose of this metric is to ensure that interim reviews are conducted. This measure will also support and verify contractor engagement and work-in-progress activities Lagging Measures Lagging measures include: Contractor Total Recordable Incident Rate (TRIR) Contractor Days Away From Work Rate (DAFWR) 4.2 Verification The following steps shall be conducted to verify process performance Review of Process Effectiveness The JO CHESM process sponsor and process advisor shall review and verify that all parts of the CHESM process are effective in fulfilling relevant OE expectations and the CHESM Version 1.1. Revised 1 May

16 process purpose. The internal review shall be performed at least annually. The review should cover the subjects listed in the CHESM Quality Fitness Review (QFR) Audit of Process Effectiveness The JO CHESM process sponsor and JO CHESM process advisor shall verify adherence and identify nonconformance to the CHESM process as designed and documented. A documented audit of the CHESM process shall occur at least once every two years and shall be based upon documents and records. A CHESM Quality Fitness Review (QFR) is provided to assist with these audits Continual Improvement Plans Process gaps, nonconformance, and improvement opportunities identified from sections Review of Process Effectiveness and Audit of Process Effectiveness shall be summarized and used to assist in building continual improvement plans. 5.0 Continual Improvement The following shall occur to improve the OE process. 5.1 Gap Analysis The JO process sponsor and process advisor shall prioritize CHESM process performance gaps, nonconformities and unfulfilled OE expectations which are identified as part of the OE process measurement and verification step. Consider JO, directives, risk, resources, and other JO factors. Combine and prioritize improvement opportunities for all OE processes. 5.2 Linkage to Annual Business Plan JO shall have an annual continual improvement plan that is based upon gaps identified during the measurement and verification of the process. An example template for a Continual Improvement Plan has been developed. 5.3 Contents The Continual Improvement Plan for OE processes shall identify the following: Improvement opportunities and gaps to be closed Resources required Responsible person(s) Timing and milestones for improvements 6.0 Document Control Information Table 3: Document Control Information Description GU Common JO-Specific Approval Date 23 May May 2007 Next Revision Due 23 May May 2013 Table 4: Document History Version Number Date Notes 16 Version 1.1. Revised 1 May 2010.

17 Version Number Date Notes May 2007 Initial release of Global Upstream process 7.0 Document List Table 5: This is a complete list of the documents referenced in this process. They are grouped for the convenience of locating the references. Document List Procedure/Attachment Title File Name JO Operational Control Guidance JO Operational Control Guidance JO CHESM Risk Classification of Work Associated with Contracts JO CHESM Leadership Roles and Accountability Procedure JO CHESM Contract Owner and Task Schedule JO CHESM Contractor Engagement Activity Table CIEP CHESM Business Planning Procedure CIEP CHESM Business Planning Flowchart JO CHESM Contractor Qualification and Selection Procedure JO CHESM Risk Classification JO CHESM Leadership Roles CHESM Task Schedule 2011.pdf CHESM Contractor Engagement CHESM Business Planning CHESM Business Planning Flowchart CHESM Qual and Selection Version 1.1. Revised 1 May

18 Procedure/Attachment Title JO CHESM Qualification Questionnaire Core Questions JO CHESM Qualification Questionnaire Scoring JO Contractor HES Questionnaire Guidance Joint Operations Contract HES Exhibit JO CHESM Contractor Selection Flowchart JO CHESM Pre-Job Review Procedure JO Short Service Employee (SSE) Program File Name JO Qualification Questionnaire Core Q CHESM Qual Ques Scoring CHESM Questionnaire Guidan EHS_Security_Requir ements_pcc Rev 1 1 CHESM Selection Flowchart CHESM Pre-Job Review SSE Program JO CHESM Work-In-Progress Procedure JO CHESM Interim and Post-Job Evaluation Form JO CHESM Field Inspection Checklist JO CHESM End-Of-Contract Evaluation Procedure CHESM Work in Progress JO_CHESM_Interim_ Evaluation_2011.docx JO_CHESM_FieldInsp ectionchecklist_2011. CHESM End of Contract Evaluation JO Glossary of CHESM Terms Glossary 18 Version 1.1. Revised 1 May 2010.

19 Procedure/Attachment Title CHESM Quality Fitness Review (QFR) JO Continual Improvement Plan Template File Name CHESM Quality Fitness Review CHESM Continual Improvement Version 1.1. Revised 1 May