Module 2

1
Module 2

• History of SMS
• Some benefits of SMS in practice

2
An SMS link to the Dryden Accident

• The Dryden Accident video
• Background
• Analysis of system failures
• Prevention
• What changes to the Safety Management System
  might have prevented this tragedy?
• Equipment
• People
• Procedures
• Materials

3
Evolution of Safety Management

• Command Control
• Supervisory driven
• Reactive authoritative approach
• No specific SOPs, to verify effectiveness

4
Reactive Safety Management

• after-the-fact accident prevention

5
Evolution of Safety Management

• Programs
• Safe work procedures
• Total Quality Management
• Quality Management System
• Risk Management

6
Evolution of Safety Management
We are here!

• Management Systems
• Identify, analyze and control hazards over the
  lifecycle of a project or activity
• Incorporate acceptable safety level into design
• Proactive approach to safety

7
Projected Traffic Growth and Accident Rates
Adapted from Flight Safety Foundation (1997)
8
Potential for Significant Cost Savings

• Reduce potential for lawsuits and fines
• Companies can demonstrate due diligence
  relating to an unexpected loss
• Lower insurance premiums
• 3 or more is saved for each 1 invested in
  workplace safety (Liberty Mutual Insurance Co.)
• Insurance companies pass along this savings to
  clients
• Improve workers safety insurance rating
• Better WSIB/WCB etc. rating due to fewer serious
  injuries

9
Conairs Savings from their SMS

• Occupational Health Safety costs
• Gone from 30 to -30 of industry average
• Save approximately 1,000 per employee each year
• Overall annual savings of approximately 140,000
  (based on 140 employees)
• Insurance premiums
• Have stayed consistent rather than rising like
  their competition

10
Additional Benefits from SMS

• Integrated, efficient, and pro-active safety
  management means
• Improved safety culture
• Improved labour relations, employee loyalty and
  morale
• Increased communication and employee involvement
• Improved reputation and credibility
• Increased customer confidence
• Marketing advantage
• Lower regulatory presence

11
Costs of not implementing SMS

• Few Organizations can survive the economic
  consequences of a major accident. Hence, there is
  a strong economic case for pursuing an integrated
  Safety Management System. There are three types
  of costs associated with an accident or incident
  direct, indirect and industry / social costs.
• CASA 2004

12
Costs of not implementing SMS

• Few Organizations can survive the economic
  consequences of a major accident. Hence, there is
  a strong economic case for pursuing an integrated
  Safety Management System. There are three types
  of costs associated with an accident or incident
  direct, indirect and industry / social costs.
• CASA 2004

• Obvious on-the-spot costs that are easily
  measured
• Damage to equipment
• Compensation for injury
• Property damage

13
Costs of not implementing SMS

• Few Organizations can survive the economic
  consequences of a major accident. Hence, there is
  a strong economic case for pursuing an integrated
  Safety Management System. There are three types
  of costs associated with an accident or incident
  direct, indirect and industry / social costs.
• CASA 2004

• Less obvious, and often delayed costs
• Loss of income, business, and reputation
• Legal fees, fines, and claims
• Increased insurance premiums and regulatory
  attention
• Suspension of operating certificate/license

14
Costs of not implementing SMS

• Few Organizations can survive the economic
  consequences of a major accident. Hence, there is
  a strong economic case for pursuing an integrated
  Safety Management System. There are three types
  of costs associated with an accident or incident
  direct, indirect and industry / social costs.
• CASA 2004

• Loss to society/industry
• Loss of public confidence
• Loss of regulators confidence in the company
• Victim damage and suffering

15
air transat
What might have prevented this incident?
16
How a Safety Management System Resolves Problems
From SMS for small aviation operations
17
Why move to SMS?

• To address the potential for error due to
  increasing complexity of organizations and
  operations
• To integrate safety into every aspect of an
  organization rather than isolated departmental
  (silo) safety programs
• To acknowledge and plan for human physical
  cognitive limitations (AKA Human Factors)

18
Evolution of Safety Management
SMS will move you further down the curve to zero
events
As safety procedures and practices are integrated
into business processes across the
organization overall safety improves and a
proactive approach to safety management is
realized
19
Summary of Key Points

• SMS means integrating safety into every aspect of
  an organization
• Woven into the fabric of an organization
• Part of the organization's culture and the way
  people do their jobs

20
Summary of Key Points

• SMS grew out of industrys need for integrated
  safety management
• Recognition of human limitations
• Requirement to communicate among all parts of an
  organization
• Need for continuous improvement of safety within
  the aviation industry

21
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