Benchmarking Industrial Safety Culture and Performance

Transcription

1 Benchmarking Industrial Safety Culture and Performance Mary K. O Connor Process Safety Center International Symposium Tom Lemm Regional Manager DuPont Sustainable Solutions College Station, TX 26 October 2010

2 2 US Petroleum and Petrochemical Industries report some of the best safety performance Injuries & Illnesses Cases With Days Away From Work Rate per 100 Employees* US Industry Average (1.3) * U.S. Bureau of Labor Statistics, 2008 Data Injuries & Illnesses DuPont ** OGP Avg Refining Petrochemical Nuclear Power Electric T&D Health Care Food Mfg Crop Production Construction Warehousing Wood Mfg Urban Transit Coal Mining Sched Air Transp 2.6

3 3 But high profile incidents are troubling. 1988: Piper Alpha (Occidental) 167 killed Cost: US$1.2 billion 1991: Sleipner A Platform Collapse (Statoil) Cost: US$1.2 billion 1998: Longford Gas Explosion (Esso) 8 killed, 69 injured Cost: US$1 billion 2001: P36 Sinking Platform (Petrobras) 10 killed Cost: US$515 million 2005: Texas City Refinery (BP) 15 killed, 170 injured Cost: US$3.5 billion+ 2010: Oil Rig Explosion, Gulf of Mexico (BP) 11 killed Cost: >US$12.5 billion Enchova Central Platform (Petrobras) 1984: Explosion, 37 killed 1988: Gas Blowout Cost: US$461 million 1996: Gas Pipeline Explosion (Enron) 33 killed, 69 injured 1995: Nigerian Oil Rig Explosion (Mobil) 13 killed, 25 injured 2005: Bombay High North Platform (ONGC) 22 killed Cost :US$195 million 2006: Pipeline Explosion (Nigerian National Petroleum Corp) 200 killed

4 4 Some define safety culture as how people behave when no one is looking? Safety Management Standards Operational Discipline Operational Effectiveness x = State of Safety Standards State of Implementation State of Operational Effectiveness Operational effectiveness is a function of your standards and the level of execution

5 The Case for Safety Culture and Operational Discipline 5 Do you experience incidents when failure to have or follow good procedures is an important cause/contributor? In 2001, DuPont initiated a Six Sigma project to assess causes for significant Process Safety Incidents in OD Involvement in Year 2000 Incidents Yes 53% No 47% OD was identified as a dominant factor in 53% of the incidents.

6 6 Our experience is that Commitment, Governance and Safety Culture set the foundation for Operational Excellence. 4. Operational Excellence 3. Implement Operations Risk Management Program 2. Build Safety Culture as a Core Value 1. Leadership Commitment & Governance Leadership and Expectations Accountability and Consequences Right Metrics Right Organization and Structure

7 7 Today s Topic Key Questions What are the differences in safety management between Refining/Chemicals and other industries? Where can we improve? What separates refining/chemical companies from the very best in industry? Benchmarking Injury rates Injury types Managing systems Safety Culture.

8 8 DuPont Safety Culture Perception Survey 500,000+ Survey Responses 52 Industries broad range including: energy, food, paper, chemicals, manufacturing, transportation, and mining 20 Upstream companies 41 Countries 9+ years of Relative Cultural Strength (RCS) Data 24 Questions

9 9 Survey data can be sorted and analyzed in a number of formats. 7 Question 2: Indicate the priority that others give to safety. Percent of respondents that said others ranked safety first: All Responses Survey Score Benchmark Best % 0% 100% % All Respondents Managers Supervisors Hourly Workers Professionals Example Data Managers Supervisors Hourly All Professionals Workers Respondents Percent of Respondents: % % % % % Selves 88 A 94 B 87 C Managers < A Supervisors < B Hourly Workers < C All Respondents Count of Responses Above: < Indicates what response or responses are grouped together for Benchmarking. Report: ConocoPhillips Created: 26Jul2010 Survey: ConocoPhillips 2006 Survey Copyright 2010 DuPont. All rights reserved. The DuPont Oval Logo and DuPont are registered trademarks or trademarks of DuPont or its affiliates. A 88% of managers say they themselves give safety top priority while 51% of workers think managers give safety top priority. B 94% of supervisors say they themselves give safety top priority while 62% of hourly workers think supervisors give safety top priority C 87% of workers say they themselves give safety top priority while only 74% of workers say that other workers give safety top priority These are perception gaps. This is the most important question in the survey! Take the time to review and understand this bottom table for Question 2 in your report. You may value safety as top priority but how does your organization perceive this? Survey Results by Job Category A: Managers B: Supervisors C: Hourly Workers D: Professionals A B C D Leadership Q1 Priority individuals give to safety Q2 Priority respondents think others give to safety Q3 Belief that injuries can be prevented Q6 Extent that safety is built in Q7a Presence of safety values Q7b Influence of safety values Q9a Involvement in safety activities Q14 Extent safety rules are enforced Q19 Recognition for safety achievements A B C D Structure Q4 Effect of a drive for safety on business performance Q5 Level of safety where the cost-benefit break-point occurs Q8 Extent line management is held accountable for safety Q13a Quality of safety rules Q13b Extent that safety rules are obeyed Q21 Knowledge of safety performance Q22 Rating of the safety organization Q23 Rating of the safety department Q24 Satisfaction with the safety performance of the organization A B C D Processes and Actions Q10 Extent individuals feel empowered to take action in safety Q11 Extent of safety training Q12a Frequency of safety meetings Q12b Safety meeting attendance Q12c Quality and effectiveness of safety meetings Q15 Thoroughness in investigation of injuries and incidents Q16a Extent of involvement in safety audits Q16b Quality of safety audits Q17 * Rating of modified duty and return-to-work systems Q18 The presence of off-the-job safety programs Q20 Rating of the safety of facilities and equipment Report: Example Company Created: 29Jul2009 Survey: Example Company Survey Copyright 2009 DuPont. All rights reserved. The DuPont Oval Logo and DuPont are registered trademarks or trademarks of DuPont or its affiliates. 11

10 10 Relative Culture Strength (RCS) as Predictor of Total Recordable Rate (TRIR) Relative Culture Strength Site Average Score Benchmark Best Benchmark Worst Benchmark Worst 100 Score of 0-100% Benchmark Best Companies TRR < 1 over a 5-year period No fatalities over a 5 year period Lost Workday Frequency Rate < 0.25 over a 5-year period Site population > 200 employees Verification by DuPont field assessment 10 companies, at least one in each region of the world

11 Total Recordable Rate 11 As RCS improves, TRR (average and variability) improves. Reactive Safety by Natural Instinct Compliance is the Goal Delegated to Safety Manager Lack of Management Involvement Dependent Supervisor Control, Emphasis, and Goals Management Commitment Condition of Employment Fear/Discipline Rules/Procedures Value All People Training Relative Culture Strength NOTE: Data is from >25,000 survey responses from 53 sites in the 4 key industries Independent Personal Knowledge, Commitment, & Standards Internalization Personal Value Care for Self Practice, Habits Individual Recognition Interdependent Help Others Conform Others Keeper Networking Contributor Care for Others Organizational Pride *

12 Total Recordable Rate* 2008 BLS Industry Average Industry Averages in DuPont s Database Avg TRR* Avg RCS NAICS Industry 211 Oil and Gas Extraction Mining (except Oil and Gas) Utilities Electric Gen., Transmission, and Distribution Natural Gas Distribution Food Manufacturing Paper Manufacturing Petroleum and Coal Products Manufacturing Chemical Manufacturing Nonmetallic Mineral Product Manufacturing Primary Metal Manufacturing Transportation Equipment Manufacturing Merchant Wholesalers, Nondurable Goods Air Transportation Transportation and Warehousing Natural Gas Pipelines * TRR based on 200,000 hours Relative Culture Strength Average of Survey Respondents in Industry Benchmark Best *TRR based on 200,000 hours.

13 Total Recordable Injury Rate per 200,000 hours 13 DuPont s Refining and Chemical Industry Database Benchmark Best Relative Culture Strength 14 Companies in the DuPont Database Employees and Contractors Company RCS TRIR A B C D E F G H I J L M N O Ind. Avg

14 14 Refining and Chemical Survey Findings Strongest Cultural Elements Extent Line Management is held Accountable for Safety Extent that people say they obey safety rules Presence of Safety Values/Principles Attendance at Safety Meetings Safety Values Up-to-Date and Influential Investigation of incidents Weakest Cultural Elements Extent of Involvement in audits/observations and other activities Satisfaction with the Safety Performance of the Organization Recognition for Safety Achievements Management or promotion of off-the-job safety

15 15 High Scoring Results from a US Super-major integrated petroleum company Q1 Q2 Q3 Q6 Q7a Q7b Q9a Q14 Q19 Q4 Q5 Q8 Q13a Q13b Q21 Q22 Q23 Q24 Q10 Q11 Q12a Q12b Q12c Q15 Q16a Q16b Q17 Q18 Q20 A: Managers B: Supervisors C: Hourly Workers D: Professionals A B C D Leadership Priority individuals give to safety Priority respondents think others give to safety Belief that injuries can be prevented Extent that safety is built in Presence of safety values Influence of safety values Involvement in safety activities Extent safety rules are enforced Recognition for safety achievements A B C D Structure Effect of a drive for safety on business performance Level of safety where the cost-benefit break-point occurs Extent line management is held accountable for safety Quality of safety rules Extent that safety rules are obeyed Knowledge of safety performance Rating of the safety organization Rating of the safety department Satisfaction with the safety performance of the organization A B C D Processes and Actions Extent individuals feel empowered to take action in safety Extent of safety training Frequency of safety meetings Safety meeting attendance Quality and effectiveness of safety meetings Thoroughness in investigation of injuries and incidents Extent of involvement in safety audits Quality of safety audits Rating of modified duty and return-to-work systems The presence of off-the-job safety programs Rating of the safety of facilities and equipment

16 16 Results by level for a top performing chemical company Q1 Q2 Q3 Q6 Q7a Q7b Q9a Q14 Q19 Q4 Q5 Q8 Q13a Q13b Q21 Q22 Q23 Q24 Q10 Q11 Q12a Q12b Q12c Q15 Q16a Q16b Q17 Q18 Q20 A: Managers B: Supervisors C: Hourly Workers D: Professionals A B C D Leadership Priority individuals give to safety Priority respondents think others give to safety Belief that injuries can be prevented Extent that safety is built in Presence of safety values Influence of safety values Involvement in safety activities Extent safety rules are enforced Recognition for safety achievements A B C D Structure Effect of a drive for safety on business performance Level of safety where the cost-benefit break-point occurs Extent line management is held accountable for safety Quality of safety rules Extent that safety rules are obeyed Knowledge of safety performance Rating of the safety organization Rating of the safety department Satisfaction with the safety performance of the organization A B C D Processes and Actions Extent individuals feel empowered to take action in safety Extent of safety training Frequency of safety meetings Safety meeting attendance Quality and effectiveness of safety meetings Thoroughness in investigation of injuries and incidents Extent of involvement in safety audits Quality of safety audits Rating of modified duty and return-to-work systems The presence of off-the-job safety programs Rating of the safety of facilities and equipment

17 17 Top Performers vs. Best in Class Strong accountability and policies, execution of tools Alignment issues leadership to employees and professionals Employees and Professionals may not embrace core safety values such as Goal Zero, etc., and may have difficulty accepting that safety is manageable. Employees and Professionals may not understand that working safely is good business. Many believe that the extra effort on safety is contributing to lack of competitiveness. While everyone says they follow the rules, there is an indication that many rules are not enforced. Insufficient recognition of safety achievements Professionals may not be involved Little off the job safety Total safety culture

18 18 Continuing the journey 2008 Breakdown of of Petroleum Industry Fatalities We need to improve Driving Safety Process Safety Vehicle Struck by Fire/Expl Fall Inherently Safe Design Drowning Air Trans Caught Between Electrical Other Our experience is that Commitment, Governance and Safety Culture set the foundation for Operational Excellence. Our experience is that Commitment, Governance and Safety Culture set the foundation for Operational Excellence. 4. Operational Excellence 3. Implement Operations Risk Management Program 2. Build Safety Culture as a Core Value 1. Leadership Commitment & Governance Leadership and Expectations Accountability and Consequences Right Metrics Right Organization and Structure

19 19 Conclusions A strong safety culture is the foundation to achieve operational excellence. Safety culture can be measured, compared, and correlated with injury performance. Measurement techniques allow us to target improvement efforts. Our industry has far lower injury rates than most US industry, but we have room to improve safety culture. Continued focus on safety culture and operational risk/process safety systems will be required to eliminate fatalities.

20 Thank You! Tom Lemm Regional Manager/Client Executive Houston, TX office cell