1ST WORKPLACE HEALTH SAFETY ENVIRONMENT

8 – 9 October 2019

SHERATON DAMMAM HOTEL & CONVENTION CENTRE

Under the auspices of Sponsored by

 INTRODUCTION

Meshal Alanazi
Project Coordinator
Sipchem

Contractor Safety Management

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 SAFETY MOMENT

Recordable Incidents by Contractors

Notes:
1- N= 14
2- In the years from 2015-2018
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 TABLE OF CONTENT

1 Introduction to Sipchem

2 Sipchem Safety Transformation Project

3 Sipchem Contractor Safety Management – Key Features & Enhancements

4 Governance and Sustainability

5 Results and Recommendations

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 SIPCHEM … A STORY OF GROWTH

2013
2011
 EA / BA plants 2019
2007  Acquired Aectra, commenced  Merger
1999
 Established (Marketing in Europe) operations with
 Incorporated as Sipchem  Achieved Responsible Sahara
a closed joint Marketing Care Certification 2015
stock company 2005 Company
 BDO plant  MANAR
commenced inauguration
operations

2012 2014
2010
 Established  Wire & Cable,
2004  CO, Acetic marketing unit EVA/LDPE,
2006 Acid, and VAM in Singapore
 Methanol EVA film, PBT,
 Went public plants and TMF plant
plant commenced
through a commenced
commenced operations
successful IPO operations.
operations
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Most products were produced in KSA for the first time by Sipchem
 SIPCHEM OVERVIEW… LOCATIONS IN SAUDI ARABIA

Capacity of 2.7 million tons of petrochemicals in

Jubail Industrial City, Saudi Arabia
Products Portfolio include Basics, intermediates
and polymers Jubail

Committed to growth and production of World-scale integrated

petrochemicals “Globally” manufacturing complex

Ha'il Khobar
Jubail
●
Dammam
●
Dhahran
● Doha Headquarters
Ha'il Khobar ● ●
Yanbu ●Medina Riyadh Dubai
●
EVA films
Jeddah
● ●Mecca

Dhahran
Riyadh
Sipchem Technology and
Tools and Mfg. Facilities Innovation Center (MANAR)
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 TABLE OF CONTENT

1 Introduction to Sipchem

2 Sipchem Safety Transformation Project

3 Sipchem Contractor Safety Management – Key Features & Enhancements

4 Governance and Sustainability

5 Results and Recommendations

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 S-STEP IMPLEMENTATION PROJECT DESIGN & APPROACH

S-STEP IMPLEMENTATION PROJECT DESIGN & APPROACH

2017-2018 2018-2019 2019-2020

Wave 1 Wave 2 Wave 3

(Burning Platform) (Urgent) (Important)

 Visible Felt Leadership  Area Transformation  Area Transformation

 Safety Governance & Performance
Management
 Risk Containment
 Process Safety Information &
Process Hazards Analysis
 Mechanical Integrity & Quality
Assurance
 Safe Work Practices
 Incident Investigation
 Mechanical Integrity & Quality
Assurance
 Observations & Audits
 Standard Operations
Procedures
 Management of Change (Facility
Change Request)

 Emergency Response Preparedness

 Contractor Safety Management Partnered with

Contractor safety
 Training & Development
management in wave I
 Management of Change – Personnel

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 WE FOLLOWED A THREE STEP APPROACH TO IMPROVE CONTRACTOR
CONTROL AT SIPCHEM
Continuous
Improvement

Audit Protocol
and KPIs
1 2 3
Communication
Gaps System Upgrade and
Implementation
Permanent
Identify Upgrade the Communicate Team
improvement system and implement
areas based on the new system
gaps vs best
practice

Pilot Audit

Today
November 2017 Oct 2019

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 PRINCIPLES OF EFFECTIVE CONTRACTOR SAFETY MANAGEMENT

CONTRACTOR SAFETY PRINCIPLES

Only contractors with the required systems, cultures and approach to safety management are
engaged to work with Sipchem

Contract specific HSE considerations / requirements are used in each contract

HSE and Contract Owners are heavily involved during pre-award activities

Contractor Bid Documentation is rigorously reviewed based on defined, consistent criteria

Specific inductions are produced, including Area / Affiliate-specific induction

Active, engaged ownership and oversight of Contractors is exercised by Contract Owners,

driving towards greater partnership
Regular, targeted and bi-directional feedback on performance is undertaken with identification
of actions plans to drive improvement

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 TABLE OF CONTENT

1 Introduction to Sipchem

2 Sipchem Safety Transformation Project

3 Sipchem Contractor Safety Management – Key Features & Enhancements

4 Governance and Sustainability

5 Results and Recommendations

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 AS A FRAMEWORK FOR IMPROVEMENTS, WE DEPLOYED DUPONT’S 6-STEP
PROCESS FOR MANAGING CONTRACTOR SAFETY

6-Step Contractor Safety Management Approach

1 2 3
Contractor Contract
Contract Award
Selection Preparation

Select contractors with
demonstrated satisfactory
safety performance
Document safety perf.
expectations, standards for
execution of the work,
capabilities of key personnel,
expected behaviors
Communicate and test for
understanding of the safety
expectations documented in
the contract

6 5 4

Post-Contract Managing The Orientation &

Evaluation Contractors Training

Assess level of success and

Ensure that we’re following Prepare contractor team for
lessons learned. Determine
the plan outlined in Steps 1 project success including
whether to use the contractor
through 4 safety regulatory compliance
again

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 WE STRENGTHENED THE PRE-QUALIFICATION PROCESS BY MEANS OF A
TOOL AND ASSOCIATED SCORING GUIDANCE

Managing Post-
Contractor Contract Contract Orientation
The Contract
Selection Preparation Award & Training
Contractors Evaluation

Contractors’ pre-qualification is achieved by issuing a standard and comprehensive HSE Pre-qualification format questionnaire
document for the Contractor to complete and support where necessary by historical performance records.

Full Pre-Qualification Questionnaire is required for:

 Contractors will perform a job/activity that requires a work permit.
 Contractors registering with Sipchem for the first time,
 Contractors who have previously been removed from site and/or had their contracts revoked, and
 Contractors whose pre-qualification has expired.
1- Full Prequalification Vs. Short
Short Pre-Qualification Questionnaire is only applicable for:
 Contractors will perform a job/activity that does not require a work permit.
 Contractors will perform a job/activity that in size < 150.000 SR.
 Contractors will perform a job/activity that less than a week.
Prequalification
Note that; all 3 criteria must be met in order to use shorter version; otherwise full pre-qualification must be used.

Pre-Qualification Questionnaire is not required for services and supply contractors that are not required to be present in operating
areas i.e.

2- Scoring Mechanism
 Consultants  Government services
 Training providers  HR Contracts
 Utility service providers  Contractors providing incidental services such as laundry, delivery, janitorial work,
 Media and Marketing companies catering services and supply services that are not required to be present in operating areas.
 Office buildings providers)

The validity of the Contractors pre-qualification is defined based on the criteria described
Scoring Pre-qualification Validity
85% - 100% Pre-qualification is valid for three years if not awarded any job during this period
65% - 84%
30% - 64%
Less than 30%
Pre-qualification is valid for two years if not awarded any job during this period
Not Pre-qualified and may be reassessed after 6 months
Rejected and not to be considered
3- Heavy Engagement from End
Users and the Safety Team.
Please review and validate the documentation provided by contractor and then make this scoring excercise.

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 GREATER INVOLVEMENT OF HSE AND END USERS IN THE CONTRACT AND
BID PREPARATION PROCESS WAS MANDATED...

Managing Post-
Contractor Contract Contract Orientation
The Contract
Selection Preparation Award & Training
Contractors Evaluation

1- Contract specific
safety expectations
are mandated in each
contract
Contractors Safety
Expectations

Formalize involvement of Safety Team

in the Pre-award

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 BEFORE ALLOWING CONTRACTOR ON SITE, CONFIRMATION THAT ALL
REQUIREMENTS ARE MET IS PART OF A FORMAL, DOCUMENTED KICK-OFF

Managing Post-
Contractor Contract Contract Orientation
The Contract
Selection Preparation Award & Training
Contractors Evaluation

Kick-off Meeting

• Purpose of the meeting was described

• Attendees for the meeting were identified

• Roles and responsibilities for attendees

were listed

• Minimum agenda was introduced for a

structured meeting

The purpose, process and agenda for the kick-off meeting have
been formalized, as has the attendees and their roles

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 A SPECIFIC INDUCTION FOR EACH PLANT HAS BEEN DEVELOPED AND ARE
GIVEN TO THE CONTRACTOR

Managing Post-
Contractor Contract Contract Orientation
The Contract
Selection Preparation Award & Training
Contractors Evaluation

• Basic Safety Orientation

upgraded with additional
content
• Affiliate specific inductions
were developed.
• Contractors are part of
Sipchem training program

Specific induction stickers

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 A SPECIFIC INDUCTION FOR EACH PLANT HAS BEEN DEVELOPED AND ARE
GIVEN TO THE CONTRACTOR

Managing Post-
Contractor Contract Contract Orientation
The Contract
Selection Preparation Award & Training
Contractors Evaluation

1- Field auditing
tool was
2019
developed along
with a dashboard
Piloting the Monthly
Audit Form
2- Reviewed by
sub-committee on
a monthly basis

Safety Performance Dashboard

Task Team pilotting the audit

form
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 A GOOD BASIS FOR POST-EVALUATION WAS IN PLACE, WE HAVE
STRENGTHENED IT AND ATTEMPTED TO REDUCE THE SUBJECTIVITY

Managing Post-
Contractor Contract Contract Orientation
The Contract
Selection Preparation Award & Training
Contractors Evaluation

Contractor Name:
Contractors Performance Evaluation
Contractor Contact Name:
1- Evaluation Tool
GENERAL

Contract / PO Number: Contract Title:

Sipchem Contact: Brief Description of Contract Service Provided:

was upgraded
Evaluation Period:
SAFETY (Data to be obtained from IS&HSE)
NO. OF FIRST AID CASES SAFE MAN-HOURS WORKED
NO. OF NEAR MISSES

NO. Of LOST TIME INJURIES OR OSHA LOST TIME INJURY RATE

RECORDABLES

PERFOMANCE RATING CODES

A - Excellent B - Good C - Fair D - Poor E- N/A
SAFETY PERFORMANCE RATING

2- Scoring
Not Applicable/
Exceeded Expectation Met Expectations Needs Improvement Unacceptable Performance
Unknw on
Description Rating
A B C D E
PROMPT & ACCURATE INJURY REPORTING x

Mechanism
CONTRACTOR’S SAFETY CULTURE x
SENIOR MANAGEMENT PARTICIPATION IN SAFETY WALKS x
CONTRACTOR’S PARTICIPATION IN CAMEL PROGRAM x
RATE THE CONTRACTOR SAFETY OFFICERS PERFORMANCE x
SAFETY PROCEDURES FOLLOWED (EMRGENCY, PERMITTING, AUDITS ETC.) x
STANDARD OF CONTRACTOR PPE x
QUALITY OF SITE SPECIFIC SAFETY PLAN I.E. WAS IT IMPLEMENTED AS IT IS
DOCUMENTED x

3- Heavy
EMPLOYEE’S ABILITY TO UNDERSTAND INSTRUCTIONS x
EMPLOYEE’S ATTITUDE ON SAFETY INSTRUCTIONS x
Any other comments on safety
performance (such as attitude,
cooperation etc.)

Post-evaluation scoring tool engagement from

End Users and the
Safety Team.

Guidelines for scoring

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 TABLE OF CONTENT

1 Introduction to Sipchem

2 Sipchem Safety Transformation Project

3 Sipchem Contractor Safety Management – Key Features & Enhancements

4 Governance and Sustainability

5 Results and Recommendations

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 WE HAVE SET UP A PERMANENT CC SUBCOMMITTEE TO ENHANCE AND
SUSTAIN SIPCHEM’S CONTRACTOR CONTROL SYSTEM

SAFETY GOVERNANCE STRUCTURE

Central Sustainable Safety Committee

BUn Monthly Performance Element

Review Subcommittees

Daily BUn Meeting

BUn-Business Unit n

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WE HAVE SET UP A PERMANENT CC SUBCOMMITTEE TO ENHANCE AND
SUSTAIN SIPCHEM’S CONTRACTOR CONTROL SYSTEM

EXPLANATION

 Each element with have an

element champion
matching their functional
role in the organization and
one or more subcommittee
members
 Their role will be to:
 Oversee implementation
 Conduct audits
 Update and monitor KPIs
 Serve as a reference for best practices
 Each element will also be
sponsored by a member of
the CSSC

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 TABLE OF CONTENT

1 Introduction to Sipchem

2 Sipchem Safety Transformation Project

3 Sipchem Contractor Safety Management – Key Features & Enhancements

4 Governance and Sustainability

5 Results and Recommendations

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 WE HAVE SEEN A DROP IN THE INCIDENT RATE FOR CONTRACTORS

0.25

Incident Rate Threshold 2018 is 0.20 or below

0.20

0.15

Incident Rate Threshold 2019 is 0.10 or below

0.10
Recordable Incidents by
Contractors this year
2017 2018 2019 YTD

Contractor Incident Rate

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 RECOMMENDATIONS

 Maintaining continuous leadership commitment to the transformation program is key –

visible and felt
 Time and presence committed to the enhancing system
 Setting the right expectations
 Welcoming the reds and challenging the greens
 Maintaining strong and well defined governance structure
 Recognize and support sub-committee leader
 Engage all stakeholders right from the start, including contractors!
 Ensure one voice – selling transformation to employees through active communication
 Pilot test new forms and tools, this helps enhance its validity.

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 CONTACT

menazi@sipchem.com

013 359-9679

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