Electric Vehicles Australia TEMAS) jement Plan2.3. Internal Context 2.3.1. Organisational Culture Electronic Vehicles Australian was established in 2008 and considers itself a disrupter in the Australian car market. The organisation has less than 200 staff and considers itself on the cutting edge of technology. The organisation is still maturing its processes and procedures as it establishes itself in the Australian market. The organisation has the risk appetite and financial backing to explore the Electric car market within Australia, ‘The organisation prides itself on being a ‘green’ company and delivering an environmentally friendly transport alternative. Safety is of the upmost importance for the organisation and Its consumers. Safety and Environment is Electronic Vehicles Australia’s highest concern for success. 2.3.2. Organisational Context Electronic Vehicles Australia Ltd Is a registered private company and operated in Australia. Tt Is a wholly owned subsidiary of Electric Vehicles International. The board report directly to Electronic Vehicles International on a quarterly basis. Organisational risk policies are defined at the regional level (Australia) but a reported to the international group for review and alignment. The policy is owned by the regional entitles. Electronic arers arte Fl Peet REMC iterator Vege eae ite) feel Figure 2 Organisational Context Regional Structure Electric Vehicles Australia ~ Paul Nicholas 110755322.3.4. Project Structure ‘The delivery of the Vehicle X project is made up of the following work streams designed to deliver the vehicle to market. Risk will be considered in the following context for delivery Figure 3 Vehicle X Project and Organisational Structure 2.3.5. Governance Risk will be evaluated for the life of the project within the individual working groups. These groups will meet on a weekly basis and will be governed by the individual project managers in accordance with the organisation risk policy. Material risks will be reported and reviewed at the Project Steering Committed on a monthly basis, the general manager for risk will be accountable general manager chairing these sessions. The steering committee ultimately Figure 4 Governance Framework reports the CEO and board of Electronic Vehicles Australia and this is on a quarterly basis. ‘At the completion of the project, risk will be monitored by the product owner and risk managers in regular monthly meetings. elec Veises Astral au Mes 11075592 E>2.4, Risk Management Process This Risk Management Plan will focus on the safety aspect of the introduction of the new Electronic Vehicle to Australia, The purpose of this Is to asses and treat the risk for successful Implementation of the project and operation of Electric Vehicle Australia with regard to the launch of vehicle X as defined above. ‘The objectives of this Risk plan include: ‘= Identification, evaluation and treatment of safety risk for the introduction of Vehicle X to Australia Q3 2018 © Reduce the risk of all significant and major risks to a tolerable risk level. = Ensure the timely implementation and measurement of all risk treatment plans. + Train all personal with regard the risk management process and framework. © Ensure ris! Identification are established. regularly reviewed, monitored and records and all channels for risk ‘The organisation will achieve this by: + Established working group, steering committee and board procedures incorporating risk ‘+ The use of Expert Judgement and subject matter experts identified in all risk areas. + Regular Internal and External audits. ‘+ Independently reviewed risk identification checklists © Compliance the legal and regulatory framework and guidelines. = The use of risk assessment and management methodologies as outline within this plan. Electric Vehicles Australia ~ Paul Nicholas 110755322.5. Stakeholders 2.5.1. Stakeholder Identification Pears Electronic Vehicles Australia (Board) Electronic Vehicles International General Manager Risk and Compliance Roads and Maritime NSW Program Director Vehicle X NSW Government Employees ‘Australian Government ~~ Department of Industry Solar Charging Stations Australia Urry! International Shipping Suppliers pea ‘Maintenance Support Suppliers Industry skort Groups . wo, (A wa ‘ Pub nies ‘Groups Media Figure 5 Stakeholder Table 2.5.2. Stakeholder Analysis Influence/Interest Board Review/Approve Risk Management Plan General Manager Risk and Compliance Delegated Authority for Risk Review <$x Prepare Risk Management Plan Assistance in resolving Issues Daily Operation CFO Funding Authority and Governance Electric Vehicles Australia ~ Paul Nicholas 11075532 ®Finance Third Party Risk Supplier Environmental Market Risk Employee Technology Reputational Risk Figure 8 Risk Area Electric Vehicles Australia ~ Paul Nicholas 11075532 No No No No No No Yes + Interest rate changes may affect current bank loans. + Interest rate changes for consumer credit may decrease demand for new vehicles + Interest rate changes for consumer credit may increase demand for new vehicles. ‘+ Changes in foreign exchange may impact cost of, goods. ‘+ Solar Charging Stations Australia may not be able to deliver charging stations in time for pilot and public launch. ‘+ Issues affecting the charging stations may cause loss of consumer sentiment to the vehicle. ‘+ Electric Vehicles International may not be able to manufacture and deliver agreed quantities on schedule, Quality of goods may be unreliable. + Cost and timeliness of international delivery may vary based on distance from supplier. * Changes in market sentiment for ‘green vehicles’ may impact demand. = Long term treatment of green vehicle wastes including large chemical batteries may cause harm to the environment. + Economic conditions may change causing delay in new vehicle purchases. Econémic conditions may change increasing demand for,hew vehicles which cannot be supplied in time. ‘onduct and Behaviour of test/pilot drivers * Information security may be compromised leading to loss of intellectual property. ‘+ Conduct and Behaviour of test/pilot drivers may cause negative reaction from the public. + Product quality and safety issues may cause irreparable brand damage.5. Risk Analysis Risk Severity Matrix uelans Likelihoo 2 Unlikely 3 Moderate 4 Likely 1 Insignificant 2 Minor 3 Moderate 4 Major 5 Catastrophic eer Likelihood Rare: Improbable. Unlikely to occur Unlikel ossible but unlikely and well below exposure standard. Probable/Moderate. The event might or might not happen Likely: The chances of this event occurring are very high Almost Certain: The chance this event may occur is almost certain Death/Terminal iliness Severe permanent health impact Mild permanent health impact ‘Temporary Impact to health Minor Health Effects Low and desirable risk level. Minimal effort is required for risk treatment as effect may be immaterial. Risk may require monitoring and tracking. Medium additional measures and copifrol may be considered as risk has moderate consequences. High agreed risk treatment is rpduired as the risk has significant consequences. Risk should be reported and tracked at a management level. Extreme risk has catastrophic consequences, control and corrective action Is essential. Immediate notification and reporting to relevant stakeholders required. Risk response plan and treatment is required. Figure 9 Risk Severity Matrix Electric Vehicles Australia ~ Paul Nicholas 110755325.2. International Context and Consideration Electric Vehicles are an emerging technology and new to Australia. These vehicles have been operating for some time in the overseas markets. Whilst a direct comparison may not necessarily be made to the Australian market consideration and review can be undertaken in how these vehicles have been implemented in other markets the risk framework and lessons learned. 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Fault Tree Analysis Fault Tree analysis is a modelling technique that allows to the logical decomposition and analysis of a particular fault. The top down deductive analysis allows for a system to be analysed using logic gates to lower level events. (Ericson, 1999) In Appendix D the fault tree is | showing a number of events and their causal relationship to the —= event of Electric Shock. As an example following one path the P . Figure 10 Fault Tree Analysis - Electric Shock organisation can see the (appendix D) following IF (cable shielding falls OR fuse isolation fails) AND High Voltage Leakage OccurS AND High Voltage Sensor Falls then and Electric Shock can occur. 6.3. Monte Carlo Simulation Monte Carlo method is a ‘what if' scenario tool used to understand the impact of risk and uncertainty. The technique is used when there a multiple unknowns and these unknowns may occur simultaneously. The method allows the exploration of sensitivity when multiple variables are occurring together based on a range of possible values. (RiskAMP, 2016) ‘The technique calls for an estimation or ranges amongst a set of variables or possible tenacious, The simulation uses a random number and calculates 500 times. For example, for the rollout project the following estimates may apply. Ta Sydney Pilot 4 Months 5 Months 7 Months Regional Pilot 3 Months 4 Months 6 Months Consumer 4 Months 5 Months 6 Months Launch Total 11 Months 14 Months 19 Months Electric Vehicles Australia ~ Paul Nicholas 110755326.4.5. Black Hal ficulties and Problems The black hat relates to caution and critical judgement. This Is particularly important with regard to safety risks where the organisation want to Identify things that can go wrong. De Bono suggests that it is easy to overuse the black hat and ignore the positive aspects. 6.4.6. Red Hat: Feelings, Intuition and Gut Instinct ‘The red hat relates to emotional or gut feeling this allows people to assess risk based on a gut feel. This may be useful in initially brainstorming risks particularly where there are a lot of unknowns. This thinking hat may be used by people in the Electric Vehicle Working groups to raise risks that they may perceive being closer to the issues. 6.5. Cause and Effect ‘The Cause and effect diagram is also referred to as a fishbone diagram. (Silverstein et al, 2009) This method allows for risk to be traced back to rook cause triggers, Similar to the fault tree analysis It allows major factors to be considered and how they contribute to the Risk. This technique is useful in tracing back the cause for elimination and risk mitigation. Below is the Electric shock risk represented by the cause and effect diagraming method. (tlle, 2010) Care eee at _—_—— Battery Incorrectly Installed ———> ‘Connection ln eS ed Battery Damaged by Accident —. Input Current too high a _, ae High Voltage Leakage = Battery Management System Fails———> Figure 11 Cause and Effect Diagram (Silverstein 2009) Electric Vehicles Australia ~ Paul Nicholas 11075532 ‘e6.6. Checklists Checklists allow risks to be identified or tested against a set of know assessment criteria. By establishing a benchmark of known hazards the risk can be evaluated against each criterion, This ensures adequate coverage and completeness. This is particulary important in the aspect of safety. Appendix A illustrated as possible checklist that may be applied to identify risk for the Electronic Vehicle in Australia, (Zhou 2008) 6.7. HAZOP ‘A hazard and operation study (HAZOP) Is an important element for the prevention of major accidents. This is particularly apparent for the aspect of safety for Electronic Vehicles ‘Australia. It Is a structured way to examine a planned or existing process to identify risk to personnel or equipment. It helps determine if the design separates from the design intent. The method employs a team who evaluate the risk through structured meetings. In order to identify deviations, the team applies a set of ‘Guide Words’ to each section of the process to facilitate discussion and ensure adequate coverage. Below is an example of @ HAZOP analysis applied to the Electric Vehicles Australia (Hyatt 2003) com Pee acy ee No Brakes Power Power —Vehicle. Isolated Testing Failure Breaking Crash Power for shutdown. Breaking Reverse Flow Voltage Electric Electric Insulated Preventative Leakage Isolation Sho, Charging design. to Failure interface charging satiation More Temperature Battery Incorrect Fire Design Air Inspection overheats Fitting Spacing around Batter Less Temperature Battery Poor Batter Insulation Testing for Freezes Insulation expands to known crack tolerances protective casing may cause damage 7 sa‘Rsk ldenteation and analysis through weekly working groups, statistical reviews, customer feedback, testing resus, intemal ang external aud fis Evuaton, organisation and pita, + Undertanding possible risk treatment options and alternatives. Risk options willbe kentfied at the worklng ‘group level and recommendations presented tothe steering group, + Evaluation ans selecton of risk treatments and planing, Options to be selected ang endorsed by the steenna] ‘commitee except wnere they exceed the delegated authory, Signfigant rsks and treaments beyond $x wil be presente to the bosrd for approval + Execution and implementation of tsk treatment plan. The Steering commie is accountable forthe ‘Sucesstul implementation othe rsk trestmants selected ae they are executed ino the program. -ontog ano of ener a es is, Ts need cera an ec. | Figure 14 Risk Treatment Process 7.4, Residual Risk Electric Vehicles Australia acknowledge that for this project it will be impossible to eliminate all risk, Using the ALARP principle risk will be reduce to the agree level of tolerability. The residual risk will continue to be monitored and recoded. For example, whilst a number or preventative and hazard reduction measures have been put in place there still exists the risk of fire however the risk has been classed at an acceptable level and will be monitored for change. 8. Risk Monitoring and Review ‘The execution of the Electronic Vehicles Australia risk management plan required on ongoing monitoring and control to review risk performance and perform continuous Improvement. ‘The monitoring and review process links to management review and implemented corrective or preventative actions. These measure are aimed to reduce and eliminate the risk and ‘occurrence of environmental impact. 8.1. Testing and Inspection ‘The implementation of testing and inspections of vehicles will ensure that vehicles are a certified to the agree safety standards and meet the specification requirements, Testing should comply with all regulatory and legislative requirements Electric Vehicles Australia ~ Paul Nicholas 110755328.2. Internal and External Audit Internal and external audit of the organisation Risk and associated processes/procedures must be undertaken on a regular basis. This is to ensure the procedures and processes are in compliance with the agreed policy. In addition, the auditor will review compliance to relevant scheme, government, regulatory and legistative requirements. 8.3. Quality Charts Given the number of vehicles being manufactured it is important to ensure that the quality is maintained to ensure that defects do not increase the risk to the safety and operation of the Electric Vehicle. The use of statistical control charts will show if the manufacturing process Is control or if there is a risk the quality of production. (Evans 1999) 0.180 01 | | 0.140 g 0.120 § ¥ 0.100 80.080 | | € $0,060 t 30.040 | 2 0.020 0.000 |—, ° roa bp 12 3 4 5 6 7 8 9 1011 12 13 14 15 16 17 18 Day Figure 15 Statistical Control Chart 8.4. Monitoring Equipment ‘The implementation of monitoring equipment and procedures for maintenance and service organisation will assist in early identification and enable preventative maintenance Examples of some of these measures include: * Risk Checklist: Appendix A is an example Risk checklist used to monitor risk = Battery Testing Kit: Testing kit for maintenance organisations to ensure safe operation Electric Vehicles Australia ~ Paul Nicholas 11075532, ‘s«Testing Kits: Testing equipment to trigger and ensure safe operation of the sensors and preventative measures to be supplied to maintenance organisations 8.5. Compliance Certification and Records The ongoing inspection of the vehicles and certification with relevant authorities to ensure that all equipment is without fault and in compliance to relevant legislation. Continual review of processes and personal to review relevant licences and certification are recorded and monitored for expiry and recertification, 8.6. Management Review Ensure data collected is properly recorded, tracked and analysed so that findings can be ‘communicated to all stakeholders and preventative and corrective actions fed back into the plans and procedures. 9. Findings it The implementation of vehicle x by Electronic Vehicles Australia carries significant risk in the aspect of safety. The implementation of the risk treatments outlined in this plan will reduce the risk to an acceptable level however they will continue to be reviewed and monitored within the framework, Significant risk areas associated with Electric Shock and Battery Fires where identified. These risk areas will continue to be monitored and safety measures and controls should be traced back to suppliers and implementation within the Australian Market. Given the size and maturity of Electronic Vehicles Australia it is expected that the risk management process will mature over time. Significant assistance may be required from overseas markets to assist with risk review and treatment options. Safety is not an aspect that Electronic Vehicles Australia can compromise on, Well above the cost of recall or treatment options the social responsibility, regulatory and reputational requirements are key to the organisational longevity and success. Electric Vehicles Australia ~ Paul Nicholas 11075532References * Amzen, H.E., 1964, Failure Mode and Effect Analysis. A powerful engineering tool for component and system optimization. © De Bono, E., 1989. Six thinking hats. London: Penguin + Ericson, C.A. and LI, C., 1999. Fault tree analysis. In System Safely Conference, Orlando, Florida (pp. 1-9). + Evans, J.R. and Lindsay, W.M., 1999. The management and control of quality. + Hyatt, N., 2003. Guidelines for process hazards analysis (PHA, HAZOP), hazards ‘identification, and risk analysis. ORC press. * Lazar, Jason and McKenzie, Mark Standards Australia 2010, Electric vehicle standards in Australia, Standards Australia, Sydney. + tlie, G, and Ciocoiu, C.N., 2010. Application of fishbone diagram to determine the risk of an event with multiple causes. Management Research and Practice, 2(1), pp.1-20. = RiskAMP 2016 ~ What is Monte Carlo Simulation, www.risamp.com visited on 28/04/2016 + Silverstein, D., Samuel, P., & Decarlo, N. (2009). Cause & Effect Diagram. The Innovator's Toolkit: 50 Techniques for Predictable and Sustainable Organic Growth, 325- 328. + Standards Australia 2009, Risk Management ~ Principles and guidelines, AS/NZS ISO 31000-2009, Standards Australia, Sydney. + Zhou, L., Vasconcelos, A. and Nunes, M., 2008. Supporting decision making in risk management through an evidence-based information systems project risk checklist. Information management & computer security, 16(2), pp.166-186. Electric Vehicles Australia ~ Paul Nicholas 11075532.Electric Vehicles Australia ~ Paul Nicholas 11075532,APPENDIX A: Checklist Style name: 1, Table Grid. To include a table into your document simply select your table tool and it will automatically update or, alternatively, copy and paste this example into your document and amend to suit the number of cells required. 1. Battery in safe location on vehicle 2. Training provided to authorised maintenance servicers Batter Is in suitable location on the vehicle 4, Vehicle has signage to identify as electric Vehicle Is fitted with emergency battery kill switch or similar feature? Vehicle is fitted with high voltage sensor for automatic disconnect? Voltage cables are in protective casings to prevent electric shock? 8. Critical systems such as braking and steering are protected from high voltage leakage? 9. Battery management system in place for monitoring, charging/discharging to prolong life of the battery? 10. Can parts such as the battery be safely lifted out of the vehicle for servicing without harm? 11, Is there are charging breaker on the vehicle to prevent overcurrent from the charging station? 12. Does the vehicle information system have adequate alerts both audible and visual to alert the driver of danger? 13. Does the vehicle make enough “noise” so pedestrians may hear its presence and anticipate movement? Electric Vehicles Australia ~ Paul Nicholas 11075532