Milliken & Company OVERVIEW. Engaging your people in ownership for safety

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1 OVERVIEW Milliken & Company Engaging your people in ownership for safety Nick Bailey Chris Poole

2 Who Are We? Established in 1865 Privately Held, Third Generation Seth Milliken Gerrish Milliken Roger Milliken

3 A Comparison of Total Recordable Incidence Rates US Industry Good Improvement Organizational and Cultural Issues Remain Milliken and Company

4 This is all we asked from our employees for years

5 Safety as a Core Value It is our belief that ALL incidents are AVOIDABLE, and MANAGEMENT is accountable. We must make certain that an incident will NEVER occur, EVER AGAIN, in any Milliken location, anywhere in the world. Mr. Roger Milliken CEO and Chairman of the Board Milliken and Company 2009, Sylvan Chemical Company, Inc. All rights reserved.

6 Operational Excellence 1985 Transition to AssociateLed Teams in safety 1990 Leadership Commitment, Involvement, Support 1992 Partnered with OSHA VPP Star Associate Empowerment & Compliance 1996 Milliken Performance System 2000 Applied Continuous Improvement Methodologies REACTIVE PREVENTIVE 2005 Focused on Hazard/Risk Reduction PREDICTIVE TODAY Equipment Conditions Behaviors Continuous Improvement

7 Roles and Responsibilities of a Safety Process ROLE in the Safety Process Leadership RESPONSIBILITY of each Role Establish Safety as a Value, Demonstrate commitment to the Journey Management Provide the Tools to Improve, Sustain the Gains Empower and Engage Employees

8 Engagement in Safety Barriers and Challenges to Employee Involvement Source: National Safety Council Inadequate training systems and structures not designed to support teams leaders who won t let go treating change like a program instead of a process lack of demonstrated commitment from top leadership amount of time and effort involved lack of trust a climate of fear not involving all key stakeholders resistance from any of the partners (supervisors, managers, support people, unions or labor force) failure to communicate what is happening failure to redefine the role of leadership lack of responsibility from top management not allowing enough time for change

9 Common Safety Practice Driven From the Top Down Safety Operations Strategy Developed at Corporate Level Generic Initiatives are Directed to Sites Ownership and Emphasis has Variation Implementation has Variation Employee Disconnect Management Control Impedes Involvement and Interaction Lack of Individual and Group Commitment Limited Results Consequence Driven Process

10 The Milliken Safety Approach Continuous Improvement Employee Engagement Knowledge & Awareness Individual Development SubCommittee Development NO MANAGERS Steering Team Development MANAGERS AS SPONSORS Leadership Development and Support Predictive/Preventive Process

11 Attaining Engagement: INDIVIDUAL Expansion Questioning Engagement ORGANISATION Identification Focus Measurement Success Awareness Discovery Learning Education Activities

12 So how to make the change : The 9 Immutables The 9 Vital Ingredients for a Successful and Sustainable Safety Process.. built on engagement

13 Vital Ingredients 3 1 Leadership Expectations and Communication Summary of Safety Principles Leadership 1. Safety must be the Organization's First and Uncompromised Value. VISION AND TARGET COMMUNICATE DEMONSTRATE 2. ZERO is the only acceptable goal % Engagement of all Associates is an Absolute Requirement. 4. Safety is about People 5. Roles and Responsibilities must change. 6. An Investment of Time and Resources is required to create A Culture of Safety

14 Vital Ingredients 3 2 Measurements Leading Preventive Risk or or or Lagging Reactive Accident

15 Picture This A team of production associates at Plant A have analyzed data that indicate elevated hazards in one area of the location. They initiate a risk reduction project that targets this area and significantly reduce the risk before any co"workers are injured. Their ability to continue to predict and prevent relies on the quality of the data that is tracked.

16 Vital Ingredients 3 3 OrganisationalStructure What is my safety role? What are my safety measures? What is my safety activity?

17 Vital Ingredients 3 3 Organisational Structure Weekly summary and feedback Associate names Red dot green dot for completion of audit 2011 Milliken Design, Inc.

18 Picture This Every associate in your organisation is active in the safety process and feels ownership for their piece of the process. Safety expertise is not limited to the company or site safety professionals, but is divided and owned by the total site.

19 Vital Ingredients 3 4 Agenda I. Sales II. EBIT III. Productivity IV. Safety Agenda I. Safety II. Sales III. EBIT IV. Productivity Reporting How involved are you in the review of safety metrics? Safety metrics are reviewed with associates at all levels of the organization. Reporting of safety metrics occurs on schedule and is not bypassed. Review and Recognition

20 Picture this Formal meetings Standard work Layered audits Overlapping, reinforcing Plant review Daily review Department/ team meeting Shift huddle

21 Picture this the mystery shopper (risk taker)

22 Vital Ingredients 3 5 Standardisation Common Language, Common Templates, Common Tools, Consistent Expectations, Consistent Measures Autonomy to try new ideas and improve standards Expectation to share best practices with other sites Efficient use of resources Repeatability of success Stable platform to make the next improvement

23 Vital Ingredients 3 6 Time and $ Commitment When an incident occurs and someone is injured Before the Incident After the Incident Where do you invest?

24 Sacred Time Associate led Safety Team Meetings Thursday Safety Dot Awareness (1 min) Shift Change Meeting Safety first on Agenda (2 min) Attend Subcommittee Meeting (1 hour/month) Each Associate spends up to 1 hour 45 min weekly focused on safety with up to an additional 1 hour monthly. 24

25 Spend (in $ per associate) 3600 The Total Cost of Being Safe Cost of an Incident 1200 Cost of Prevention 0 Milliken & Co. Industry Avg. The average company spends 2X as much on safety at an incident rate 10X higher

26 Vital Ingredients 3 7 Education I hear and I forget I see and I understand I do and I believe I practice and I own I master and I innovate

27 Vital Ingredients 3 7 Education Training Modules (Topic specific), Code and Compliance Guidelines, Etc. Training Instructors demonstrate on how to properly use hand off tools Weekly drills held by the Emergency Response Team

28 Vital Ingredients 3 8 Case Management An organisation speople are its most important asset. Caremust be the most important component in the organisation s case management and return to work procedures in order to maintain trusting relationships with its people.

29 Vital Ingredients With Associates - With local emergency response teams - With local medical professionals Care Management It s all about Relationships; From the moment that an injury occurs - Based on honesty - Based on consistency - Based on sincerity - Based on proactive actions The average time to manage the casewithin Milliken and Company is 6 weeks. All Industry average is 13 months.

30 Vital Ingredients 3 9 Awareness Activities

31 Picture this Associate awareness for hand safety is raised by having associates race to spread jam on a piece of bread using only their non"dominant hand. Participants and observers are laughing and cheering, but all walk away understanding that even the simplest tasks become much harder without the use of both hands.

32 Vital Ingredients 3 9 On3going Awareness Activity

33 SUMMARY Common goal Shared vision Defined roles 9 vital ingredients 20 Step process LEADERSHIP ZERO ENGAGEMENT MANAGEMENT EMPLOYEES

34 Deliverables of the Milliken Safety Way Phase Process Steps 1. Leader ship Overview Leadership Education 2. Current Process & Documentation Review Facility Assessment 3. Case Management 4. Steering Committee Development Initial Safety Steering Committee Education 5. Safety measures and reporting 6. Incident investigation 7. 5S Overview 8. Hazards and Risk in the Work place 9. BBS Overview 10. Audit development! 11. Data overview 12. Incident Profile Analysis 13. Subcommittee Development 14. Kick off preparation 15. Process Hazard Analysis & JSA s 16. Job Safety Analysis 17. Sub Committee Implementation 18. Index System 19. Critical Path Development 20. System Review Time in Months Our clients see two key changes after working with the Safety Way : 70% reduction in accident frequency after 12 months of running the System Significant increase in engagement and sense of ownership for the safety process

35 Our passion... What stands out is everyone s passion around safety. Milliken came across as an innovative company that stays competitive through its excellent people and processes. Kevin Friel, General Manager Polymer Heaters, Tyco Thermal Controls

36 Our system... Lean Enterprise Safety is the foundation and the Trust Component of our operating system.

37 Our invitation to you. I see and I believe... Meet our people the real owners of the Safety and Performance systems

38 Thank You! Nick Bailey Chris Poole