csi forum 2009 improving safety in the industry: csi progress and priorities antony henshaw cemex /...

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CSI Forum 2009 Improving safety in the industry: CSI progress and priorities Antony Henshaw CEMEX / CSI

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CSI Forum 2009

Improving safety in the industry: CSI progress and priorities

Antony Henshaw CEMEX / CSI

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Background: Health and Safety• 1 of 6 key areas identified in Agenda for Action • CSI member commitments (2002):

– develop standard, joint systems to measure, monitor and report

– establish information exchange to share experiences and understand accident root cause

– improve existing systems, procedures and training for tracking, following up and preventing accidents

– report performance publicly in common format

3

Work to date‘Guidelines for Measuring and Reporting’

‘Examples of Good Practice’

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Key Performance Indicators KPI’s (Cement only) Year 2003 Year 2004 Year 2005 Year 2006 Year 2007 Year 2008

CSI Members reporting 11 14 16 18 17 18

Total directly employed 130,752 138,940 148,684 172,133 188,834 190,747

Manhours, directly employed 246m 269m 286m 372m 402m 390m

LTIs, directly employed 1,651 1,585 1,699 1,381 1,301 1,038

LTI FR, directly employed 6.71 5.88 5.95 3.71 3.23 2.66

Number of Lost Days (calendar), directly employed

No data No data 69,074 67,035 59,949 70,566

LTI SR (calendar), directly employed

No data No data 242 180 149 181

Number of LTIs, indirectly employed (contractors)

652 739 835 1,199 1,285 1,122

Number of Fatalities, directly employed

28 27 22 25 33 26

Fatality Rate (per 10,000 directly employed)

2.14 1.94 1.48 1.45 1.75 1.36

Number of Fatalities, indirectly employed (contractors)

32 54 41 58 87 91

Number of Fatalities, third parties 21 11 12 6 11 16

Total number of Fatalities 81 92 75 89 131 133

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Good progress in LTIs reduction

0

1

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2003 2004 2005 2006 2007

Freq

uenc

y R

atio

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50

100

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2003 2004 2005 2006 2007

Sev

erity

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io C

alen

dar

No D

ata

No D

ata

Data here: cement-only LTI data for all activities

shows similar positive downward trend

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Poor progress on fatality reduction

2008: 220 reported fatalities

CSI fatality incidence is unacceptable

61%

10%

20%

9%

Cement

Aggregates

Readymix

Other

Activity 2007 2008

Cement 134 133

Aggregates 15 22

Readymix 33 45

Others* 25 20

Totals 207 220

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Fatality rates: cement-only 2008: 133 cement-only fatalities (16 employee, 102 contractor, 15 third party)

Similar total to 2007

Reduction in employee fatalities offset by increase in contractor fatalities

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0

20

40

60

80

100

120

140

2003 2004 2005 2006 2007 2008

# Fa

talit

ies

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# Co

mpa

nies

Third PartyContractorEmployee# Companies Reporting

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Peer comparison

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Employee Fatality Rates

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0.5

1

1.5

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OGP Chem CSI

Fata

lity

Rate

Contractor Fatality Rates

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OGP CSI

Fata

lity

Rate

(CSI contractor rate is estimated)

• Cement industry performance very poor compared to the Chemical and Oil & Gas industries

• Despite good practice sharing and ongoing safety commitments fatality rates are rising

• Likely to increase as CSI members expand into developing regions and construct new plants

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Peer comparison: fatality prevention

Fatality Prevention Review (2009):

31 companies consultedFocused on fatality prevention statistics and

approaches to ascertain:– Best-performing companies– How they achieve success in fatality elimination– What the CSI can learn

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Fatality rates“Class A” “Class B” “Class C” “Class D” “Class E”

Employee Fatality Rate of < or = 0.1

Employee Fatality Rate of 0.11 to 0.25

Employee Fatality Rate of 0.26 to 0.5

Employee Fatality Rate of 0.51 to 1.0

Employee Fatality Rate of 1.01 to1.5

Akzo NobelCATContinentalExelonFortumGEITTMondiPirelliUTC

ABBAEPBPDowShellUmicore

AlcoaDSMENIEvonik-DegussaPetro-CanadaRio TintoWeyerhaeuser

AlstomGoodyearHoeghStora EnsoTNT Express

Anglo-AmericanBHP BillitonEON

OGP CSI

If CSI moved to “Class A” it could save up to 200 lives a year

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Learning for CSI• 70% have specific Fatality Prevention

initiatives• Successes:

– UTC & Rio Tinto reduced fatalities by factor of 10

– ABB by factor 7– AEP by factor of 5

• Successes typically gained over 5 years, some 3 years

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Key success factors

Highly visible CEO commitment Senior Management safety training Establishing safety “Golden Rules” Strong safety management of contractors Strong safety management of drivers Rigorous fatality investigation procedures Implement specific fatality prevention focus

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CSI: Root case analysis

Category 2007 2008

Employee 45 42

Contractor 122 133

Third Party 40 45

Totals 207 220

Highest risk category of person: contractors

16

47%

29%

9%

3%

6%

4% 2%

Traffic & Moblie Plant

Falls from Height & ItemsFalling

Caught in Moving/StartingEquipment

Electrocution during plantmaintenance

Buried in Stockpile/Silo

Explosion of tanks & tankers,Fires

Other

Root case analysis

Highest risk area of work: driving and vehicles

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CSI actionDriver and Contractor Safety Initiatives

started in November 2008

To eliminate driver and contractor

related injuries and fatalities

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Driver and Contractor SafetyDriver Safety guidelines:

– 8 Safety Elements for Drivers

– 9 Safety Elements for Managers

– Guidelines on Implementation of Safety Elements

– Guidelines for Transport Contractor Management

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Driver and Contractor SafetyContractor safety guidelines:– Safety Considerations for Contractor

Management (Prequalification, Contract Definition and Award, Pre-Commencement, Implementation, Handover and Acceptance, Post-Contract Review)

– 6 Safety Elements for Contractor Management:

– Guidelines on Implementing Safety Elements for Contractor Management

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Implementation

• Gap analysis by each CSI member company on systems already in place

• Adoption of Good Practice documents within 5 years across all activities and regions

• Public updates on implementation progress

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Pilot projects (contractors)

• Overseen by individual companies

• Review success in near future and assess CSI-implementation potential

– USA (contractor prequalification)

– Poland (contractor employee passports)

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Key messages• CEO-led initiative, expecting their approval

and leadership • Our injury performance as an industry is far

from where we need it to be • Without focused prevention initiatives we

can expect our performance to worsen• Industry support for the Driving and

Contractor Safety Management documents will set us on the right path to zero fatalities

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For more information … Driver Safety breakout session:

This afternoon at 16.15

Chromium room

Task Force Co-Chairs:

Jim O’Brien: [email protected]

Paul Corbin: [email protected]

www.wbcsdcement.org/safety