“How to overcome the Barriers and to Improve Human Performance”

Peter Varga

Regional HSE Manager peter.varga@slovnaft.sk

31th October, Bratislava

PRIMS SEMINAR 2003

Slovnaft and MOL Group in a nutshell • SN: Refining and Petrochemical core business

segments• Slovnaft-Mol Partnership program

“ First step on the road to becoming a regional champion “

– Focus on value creation and realisation of synergies

– Combined industry knowledge and financial strength

– Leading position in CE

– Operation Excellence

– Changing Shareholders structure

Massage to stakeholdersSlovnaft has become the first oil and petrochemical company in CE to achieve Integrated Management System registration in accordance with ……

• Slovnaft management supports this Integrated registration because it is consistent with our commitment to integrate economic, environmental and social dimensions into everyday business conduct.

• Independent certification body SGS Slovakia, which certified the Slovnaft, is well-know global company focused on the field of certification, inspection and testing. SGS auditors audited functionality of quality management system, environmental management system and safety management system at the Production and Marketing division, Procurement and Warehousing unit and other relevant units.

HSE Report 2002

• the 2002 HSE performance is summarised in HSE report

• this is in accordance with our Commitment

„ ... to share information and openly communicate about our HSEQ management framework and the impact of our activities, products and services“

• LTIF in Slovnaft, a.s.at 0,9 compared to 2,4 in 2001• Fire brigade outsourcing• HSE integration at Production unit• no occupational illness - TROIF = 0• amount of air emissions decreased by 12%• water consumption decreased by 18%• waste generation reduced by one quarter• number of fires increased by 7, to 12 cases• one contractor fatality

Highlights

2002 LTIF one of the lowest in Slovnaft history

Low hanging fruits = QUICK WINS or …..

Learning Points of IMS (HSEQ)

Benefits of Integration

There is no one right integrated management system. Each organization needs to take its corporate culture and the nature of its business into consideration when deciding how far it wants to take the integration. However …

• Simplified system resulting in less redundancy or conflict in documentation

• Optimized resources (single sys. Vs. multiple sys. With same goals

• Integrating H /S /E /Q objectives into the overall business strategy

• Establishing a common framework for continual improvement of HSEQ

Implementation Procedures – What and How ?

• Build on what is already in place but also include new elements.

• Corporate HSEQ Management Framework

• Corporate Annual HSE and Quality Objectives based on KPIs

• Annual Letter from Subsidiaries and Divisions to President

• Focus on proactive culture through» enhanced awareness» training» competence building» links to performance appraisal

What does it mean for me ?

• Grater clarity of the Policies which all Slovnaft employees must apply in order to make them

• A part of every employee’s approach to business

• A living part of the culture of every business units and subsidiaries at every level

ACTION

DIRECTION

EXPECTATION

How to DO it(Doing things right)

Slovnaft Group´s

commitment to H/S/E

HSE Policy

HSEQ Management Framework

HSE Excellence Program

Business unit´s (3P)•Policy •Process•Procedure

Slovnaft GroupHSE Core Process

Manual,Guidelines

GroupHSE Goals

Targets KPIs

What to DO(Doing the right things)

HSE Management System

Implementation -HSEQ Management System Framework

1. Leadership and Accountability

2. Risk Assessment and Management

3. People, Training and Behavior

4. Working with Contractors and Others

5. Facilities Design and Construction

6. Operations and Maintenance

7. Management of Change

8. Information and Documentation

9. Customers and Products

10. Community and Stakeholder

11. Crisis and Emergency Management

12. Incidents Analysis and Prevention

13. Assessment, Assurance and Improvement

.

PlanPlan

DoDo

CheckCheck

ActAct

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• Use this Use this methodmethod to solve problems: to solve problems:– DefineDefine problems in HR processes problems in HR processes– MeasureMeasure human performance human performance– AnalyzeAnalyze causes of problems causes of problems– ImproveImprove processes -- remove variations processes -- remove variations

and non and non value-added activitiesvalue-added activities– ControlControl processes so problems don’t recur processes so problems don’t recur

• Use this Use this methodmethod to solve problems: to solve problems:– DefineDefine problems in HR processes problems in HR processes– MeasureMeasure human performance human performance– AnalyzeAnalyze causes of problems causes of problems– ImproveImprove processes -- remove variations processes -- remove variations

and non and non value-added activitiesvalue-added activities– ControlControl processes so problems don’t recur processes so problems don’t recur

Reaching Six Sigma Performance in Safety too

DMAIC!DMAIC!DMAIC!DMAIC!

6

Why Safety Six Sigma (3S)?

• Appropriate for every business & function• Provides many tools, aids, skills• Promotes fact-based decision making &

breakthrough thinking

• Appropriate for every business & function• Provides many tools, aids, skills• Promotes fact-based decision making &

breakthrough thinking

Case Study - Product Stewardship

From “meet the regulation”

to: “doing the right thing”

“Industry feels responsible to improve the ability for society to benefit from chemicals while

minimising risk”

Product Stewardship

“Responsible Care is the commitment by chemical companies to demonstrate continuous improvement of health, safety and environmental performance of their operations and products in a manner which is responsive to the concerns of the public”

• RC insists on:– continuous improvement

– Communication • Product Stewardship is one of RC codes of Management

Practices.

Responsible Care fundamental features

• Guiding principles

• Codes, Guidance,

Checklists

• Performance indicators

• Communication

• Experience sharing

• World-wide monitoring

and registered logo

• Encourages

participation

• Verification

Responsible Care improves HSE performance and makes it known

Gain Management Commitment and

Leadership

Process Safety Management and

Systems

Operational Discipline and Operational Excellence

Change in Safety Culture

Continuous Continuous ImprovementImprovement

ProcessProcess

MOL PROJECT OUTLINE

WORLD-CLASS SAFETY REQUIRES THESE ELEMENTS

Organizational Elements

Supportive Safety Personnel Safety as a Line Organization Responsibility Integrated Organization for Safety Progressive Motivation

Supportive Safety Personnel Safety as a Line Organization Responsibility Integrated Organization for Safety Progressive Motivation

Operational Elements

Effective Communication Continuous Safety Training and Development Injury and Incident Investigations and Reports Effective Audits and Re-evaluation

Effective Communication Continuous Safety Training and Development Injury and Incident Investigations and Reports Effective Audits and Re-evaluation

Strong Demonstrated Management Commitment Safety Policies and Principles Challenging Goals and Plans High Standards of Performance

Strong Demonstrated Management Commitment Safety Policies and Principles Challenging Goals and Plans High Standards of Performance

Leadership

Elements

What is important for employees? Who are are my boss(es) ? What do I want to achieve at company ? What are the objectives? What is the necessary reporting structure and

frequency ? What are the tasks and responsibilities ?

“Maslow hierarchy of needs”1. Work/life harmony2. Growth3. Affiliation4. Rewards5. Safety/Security

Foremen TrainingHSE module

version: final

Aug, 7th 2003

Content

1. Safety is good business

2. Behavior Safety Culture

3. Case Study – Summary of Alkylation Accident Report

In the European Union, each year

• 5500 people will die at work*.• 4.5 million people will be seriously injured*.• 145 million workdays will be lost*.• Workplace injuries will cost the society around €150

billion in direct and indirect costs.

*Source: European Agency for Safety and Health at Work, http://agency.osha.eu.int/

Heinrich’s Triangle

100,000 hazardsUnsafe acts - unsafe conditions

10,000Near misses

1,000Recordable injuries

100Lost time injuries

1Fatal

Iceberg conceptFatalities

Medicaltreatment

Lost time injuries

First aid cases

Serious incidents with potentialfor serious injury

Many close calls withonly minor injury potential

Unsafe acts : Not following safety rules Not following established procedures Making unnecessary changes Taking shortcuts Hurrying Using poor judgement Not maintaining good housekeeping

MOST OF THE COST IS HIDDEN

Up to 5X as largeUp to 5X as large

INDIRECT COSTS

Insurance premium increase

Damaged equipment & goods

Lost production and quality

Process Interruptions/Yield Losses

Replacement Labor / Overtime

Litigation

Damage to Customer Relations & Public Image

€35 billion to EU industry in 2000 (estimated)

€35 billion to EU industry in 2000 (estimated)

DIRECT COSTSMedical costs

Wage indemnity

Claims administration fees

Good Safety = Good Business

RELATION WITH BUSINESS EXCELLENCE

Safety culture improvement

Technical improvement

Safety management focused on employees

Time

Inju

ries

Focus on people

Safety Pointers

“A Picture Is Worth a Thousand Words”

Working with Chemicals

What’s Wrong or Right?

Points to Consider

123

4

Corrected Situation

What Have We Learned?

• Know the hazards• Select appropriate gloves for all hazards• Inspect gloves• Store gloves properly

Content

1. Safety is good business

2.Behavior Safety Culture3. Case Study – Summary of Alkylation Accident

Report

Safety Principles (see: HSE Policy)

All injuries can be prevented

Everybody has responsibility to prevent accidents

All operating exposures can be safeguarded

Training employees to work safely is essential

Prevention of personal injuries is good business

THE CASE OF INJURIES

Unsafe conditions

4%

96% Unsafe

acts

98% of accidents due to human behaviour

Action to:

Prevent the unsafe act

Correct the unsafe condition

will prevent the accident

Accident Investigation Cycle – the vicious circle

AccidentAccident

CausesCauses

RecommendationsRecommendationsCorrective ActionCorrective Action

OperationOperation

InvestigationInvestigation

Follow upFollow up

Remember to thoroughly investigate all accidents and near-misses*

Ask yourself :

What failed in the management system that allowed the accident to happen ?

What caused the near-misses or accident ?Not - Who is responsible ?

Be proactive !!

* Potential accident without injury or damage

Content

1. Safety is good business

2. Behavior Safety Culture

3. Case Study – Summary of Alkylation Accident Report

1. Executive Summary (II)

• The Report findings and its 1-14 proposed measures ensure adequate technical and organisational countermeasures of Alkylation Accident.

• The prime event leakages created an intolerable, misperception risk. This equipment failure with human and organisation failure (PPE/ warning alarm /Shutdown/ Repair Maintenance) lead to explosion and 3 slight work injuries.

• Significant general latent failure is the lack of proper Predictive Maintenance system of Alkylation/ Refinery technology.

• In a proactive philosophy of refinery management, all personnel – operating, maintenance , engineering and HSEQ staff – need to be mobilised to identify potential problems and work in common team.

Vessel 15V110 - after fire

No procedure /approved work instruction for repair of pipe

missing specific writingoperating procedurefor this work

Inadequate warning/measuring

SystemSystem failure

Repeated pipe leakages/Equipment failure

Insufficient Repair Technology process

(Furmanite tech)

IncorrectShutdown Process

Not applied emergency shutdown procedures

Personal Injury

Explosion of Flammable gas mixture

Slovnaft Refinery:•Ordering service withoutprescribing or Specifying required Technology/ work Instructions

•Operating productionUnits withoutProper emergency Response skill and Risk awareness of staff

•Missing Quality Assurance Of HSEQ related services

G4F ensure service to SN without:•Analyzing site specificHazards and develop Work instructions andtraining

Insufficient Hardware Design

Unsuitable FurmaniteMethod for repair of pipe

Wrong Decision making

Human Error

Poor Instructions/Procedures (Pracovna

instrukcia 09)Org. failure

Active StagesLatent Stages

Incident investigation of Slovnaft Alkylation unit 26/03/2003

Calibration of Gas detector

Lack of :Personal Protective Equipment

(PPE)safety shield

and wind indicator/

Warning Alarm Not accepted

presence of danger condition

Incorrect operation of fire truck

7. Result of Investigation (I) - Incident Investigation Tree (TRIPOD)

Fallibledecisions

General FailureTypes Preconditions Unsafe Acts Breached

DefencesIncident or sub incident

Mismatch between real And perceived risk

(Error Enforcing Cond.)

Shift leader/ supervisors Attempts to keep on

operation Alkylate Unit

Not proper Antistatic clothing/safety distance

SMAO ensure service To SN Without:•Details organizational And tech.Guidelines

•predictive Proper maintenance Policy/procedures

Emergency response testinadequate

Conclusion “How to overcome the Barriers and to Improve Human Performance”

• Selling Safety– Understanding your “customers” – Employees need fair treatment ,tools

for tasks and a team environment

– Sell a god product – 90% of the “Safety job”

– Start Day One

– Using Safety Committee/ team briefs meetings

– Does 100% yield 100% - renting staff behavior

– Understanding motivating factors

• Safety should not be “First” – There are no Herculean efforts …………….right next to production,

quality and profit. Safety is no first, not last , just equal.