The SRI Group Incorporated www.thesrigroup.com

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The SRI Group Incorporatedwww.thesrigroup.com

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The SRI Group

• Safety Consulting Firm based in Conroe, Texas
• 30 years of experience
• 600 Safety Process Assessments
• Over 500 facilities throughout the world
• 32 VPP Sites
• Numerous Best in Class Clients

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Client List
Duke Energy Ethyl Exxon-Mobil Fermenta GenCorp Ge
neral Chemical Goodyear Hughes Christensen Huntsma
n Chemical Honeywell Kronos Inc. Louisiana
Pacific Lyondell Citgo Marathon
Oil Merisol Motiva Murphy Oil
ASCO Air Products Chemicals Air
Liquide Albemarle Amerada Hess American
Ref-Fuel BASF Baker Hughes Bayer BP
Amoco Champion Technologies Chevron
Texaco Chevron Phillips Conoco Phillips Degussa Do
w
NACCO NAPCO National Steel Nova
Chemical Ohmstede Olin Brass OMNOVA
Solution Phillips 66 Plastipack Schenectady
International Shell Oil Sunoco Chemicals United
Space Alliance USS Steel Valspar Westlake Group
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Brother Can You Spare A Dime ? Safety Excellence
in Tough Economic Times
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Our Agenda

• What Happens in Times of Prosperity
• The Consequences of Tough Times
• The Cost of Doing Nothing
• Successful Strategies to Sustain Excellence

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Times of Prosperity ( Fat, Dumb and Happy )
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Times of Prosperity

• Hire More People
• Increase Spending
• Focus on Wants vs. Needs
• Take on New Challenges
• Time is Often Not a Factor
• Basic Execution Suffers

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Tough Economic Times
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Shift in Focus

• Reduce Overhead
• Reduce Capital Expenditures
• Reduce Head Count
• Do More With Less

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Changes in Tough Times

• Culturally
• Organization / Structure
• Technical Assurance / Compliance
• Personnel Safety

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Cultural Changes

• Worry and Concern for Future
• Inattention to Job or Task
• Less Concern With Welfare of Others
• Produce at All Cost Mentality
• Resignation

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Organizational Changes

• Fewer People
• Less Experience
• Loss of Critical Knowledge
• Confusion About New or Added
  Responsibilities
• Fewer HES Resources
• Poor MOC of Personnel

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Assurance Changes

• Limited Reinvestment in Infrastructure
• Give Backs
• Inexperienced Personnel Executing Critical
  Systems
• Ownership / Oversight of Critical Systems is
  Unclear
• Less Rigid Approach to Compliance

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Personnel Safety Changes

• New Duties / Roles are Unclear
• Insufficient Training
• Reduced Participation in Prevention Activities
• Require Fewer Prevention Activities
• Require More of HES and Less from Line
  Organization

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Consequences of Changes

• Increase of Personnel Safety Incidents
• Increase in Environmental Incidents
• Increased of Catastrophic Incidents
• Increased Cost Due to Error
• Reduced Reliability, Mechanical Integrity,
  Quality, etc.

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Cost of Incidents
Direct Cost 10K 25K / Recordable
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Cost of Incidents
Associated Costs 6X to 24X Direct Costs 10X
Direct Cost
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The Error Base Triangle
RECORDABLES ()
1
FIRST-AIDS
10
NEAR-MISSES
300
ERRORS
15,000
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Other Manifestations of Error

• Damage
• Off Spec Product
• Missed Deliveries
• Poor Reliability
• Environmental Incidents
• Excessive Costs

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Best Practices - Cultural

• Create a Sense of Security and Vision for the
  Future
• Management Visibility
• Increase Prevention Activities
• Focus on Awareness, Stewardship and Hazard
  Recognition

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Best Practices - Structural

• Line Organization Ownership
• Establish Revised Roles and Responsibilities
• Mentoring
• Management of Change of Personnel

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Best Practices - Assurance

• STRAP
• Effective Risk Management Process
• Critical Systems Ownership and Accountability
• Defined Accountability Criteria for Critical
  Systems

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Best Practices - Assurance

• Effective Risk Management
• Absolute Standards are Established
• Standards Never Compromised
• Inclusion of Business Personnel in Risk Analysis
• Inclusion of Risk Analysis in Business Decisions
• Shared Performance Metrics

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Best Practices Personnel Safety

• Participation is Mandatory and Meaningful
• Established Revised Roles and Responsibilities
• Line Organization Ownership
• Prevention Activities Increased
• Skill Sets Developed/Reinforced

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Best Practices Personnel Safety

• Keys to Meaningful Involvement
• Must Support the Overall Process
• Must be Commensurate with Current Position
• Must Produce Value for the Individual or
  Organization
• Must be Mandated
• Must be Tied to Performance Development Systems

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Fundamental Skills
Planning
Enforcement
Observation
Goal Setting
Training
Projection
Measurement
Awareness
Systematic Thinking
APS / RCA
Hazard Recognition
Data Analysis
Process Knowledge
Safety Coaching
Safety Stewardship
Auditing
Incident Investigation
Task Discipline
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Best Practices Personnel Safety

• Because of the Variable Nature of Work
• Procedures and Programs Alone are not Sufficient
• Employees Must Possess Various Mental Skills to
  Accomplish Safe Work
• Each Employee Must Continuously Challenge and
  Test Work and the Work Environment

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Best Practices Personnel Safety

• To Develop Safety Related Skills
• These Skills Must be Practiced on a Regular Basis
• They Must be Imbedded in a Process or Process
  Activity
• Frequency of Skill Utilization Must be Prescribed
• Results Must be Harvested and Used

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Best Practices Communicating Value

• Selling the Value Proposition
• Reduced Cost of Incident and Error
• Conscious Deliberate Approach to Work
• Correct Decision Making
• Improved Compliance and Reduced Risk
• Enhanced Profitability

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Moving Forward

• Communicate/Assure/Visibility
• Diagnostic Evaluation of Current Effort
• Realign to Reflect Current Structure
• Increase Prevention Activities
• Focus on Success

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Questions and Answers