Sustainable Safety Management: Incident Management As A Cornerstone For A Successful Safety Culture

Sustainable Safety Management:
Incident Management as a cornerstone for a

successful safety culture
Bernd Freibott, Director Business Development / Global Services Sustainability Hub
SAP SustainabilityLabs Markdorf, Germany
May 30h, 2011
Making use of incidents – driving health and
safety performance and safety culture globally
Presentation outline
Incident Management in the context of EHS:

1 The reality is complex!
New approach to Incident Management:

2 The central pillar of a well-run safety culture and
prevention
Lessons Learnt:
3 What to keep in mind when setting up a new and efficient
Incident Management
© 2011 SAP AG. All rights reserved. 3

Sustainability –> EHS –> Incident Management
A structured view, the SAP Solution Map
Executive Strategy Engagement & Benchmarking Materiality & Financial Risk

Management Management Corp. Citizenship & Analytics Assured Reporting & Performance
Environment, Environmental Industrial Health

Process Safety
Risk Assessment Emergency
Health & Safety Compliance & Safety & Reduction Management
Facility Energy Production Energy Carbon Natural Resource Smart Grid

Operations Management Management Management Management Participation
Supply Sourcing & Traceability Green Supply Chain

Chain Procurement & Recall Logistics Design & Planning
Material & Product Recycling Sustainable Product

Product Product Compliance
Safety & Reuse Design Footprint
Personal Residential
Consumers Footprint
Mobility
Energy
Human Diversity
Strategic Workforce Labor Compliance &
Travel Management
Resources Management Human Rights
IT Availability, Security, Accessibility & Privacy Green IT

Sustainabiliy - EHS - The reality is complex!
EHS
Material Warehouse/
Purchasing Production
Mgmt. Distribution
WASTE Mgmt.
HAZ MAT Mgmt.
3rd Party IND HYG.

SAFETY Financials/
Contract
Mgmt.
INCIDENT Mgmt. Cost
Accounting
ENV
OCCUPATIONAL
COMPLIANCE
HEALTH
Plant
Maintenance CLAIMS/ HR
DISAB Mgmt.
Individuals
Challenge EHS Global Strategy
Federal Facility Compliance Act China-RoHS
Multi Language Support OSHA / OHSAS 18001
ADR/RID ISO 14001
Kyoto-Protocol Clean Air Act
RoHS
REACh
GHG Management
Permit Management
IPP (Guidline EC 2001/68)
I(n)solated Point of View as Source of Error
No man is an island!*
Any isolated approach

is bound to fail.
*John Donne (1572-1631),It appears in Devotions Upon Emergent Occasions, Meditation XVII

Key Questions concerning EHS
Key Questions
• What information do I have to collect?
• What processes I have to set up?
• Whom do I need to inform or involve?
• How to design processes?
• How can I monitor the efficiency of
my EHS activity and processes?
• How can I better manage preventive
activity to avoid accidents?
• …
EHS Manager

EHS – Objectives for a new approach
Gain visibility and control - align objectives,

monitor and analyze performance, report, and
Analytics & Performance Mgmt.drive continuous improvement
Production Report
Proactively reduce risks - systematically identify,
assess, and control risks to prevent incidents and
management system failures
Enterprise Risk Management
Improve EHS performance - automate EHS

processes in core operations to improve
compliance, productivity, and operational continuity
Integrated EHS Management
Maximize asset productivity - optimize

maintenance to improve asset reliability and

process safety
Asset Safety and Reliability
Incidents Have High Hidden Costs and Risks
Indirect Costs Exceed Direct 5-10X
Risks Costs
Direct costs of injuries,

$1 illnesses
Brand damage
Indirect: Uninsured
costs of property
$5-50 damage, process
interruptions, etc.
Lost wages, lost

Production and productivity, re-
quality problems training, admin, etc.
Criminal sanctions
What’s possible? For a 10,000 employee company with “average”

safety performance: 20% reduction in TRIR = $4M savings

Renewed Focus on Incident Management as Lever to
Reduce Operational Risks
Executive Customers
Management Business won or lost on
safety performance
Reduce operational
risks: Improve
productivity, ensure
business continuity
Regulators
Increased costs;
possible fines, criminal Investors and
prosecution Community
Demand proof of effective
risk management

Safety and environmental risks to the enterprise
How to reduce risks at a lower cost?
Accidents happen,
270 million accidents/year
Safe
Workplace
Regulations violated
up to $1 billion loss/incident
April 14, 2009
Invista Settles With EPA, Protect
Violation Fixes Will Environment Safe
Cost $500 million Products
Product Safety impact

$800 billion
losses/year

Swiss Chesse Model – Various failures for one incident!

The idea
What we see, what we notice,

1
1% what we report, what we
1
Major
Fatal investigate.
Fatality
Injury
accident
30 What we do not see,
10
29 Cases
Lost Workday
Serious what we do not notice,
99% 300
Minor
Accidents This
whatis
wethe room
have no clue
Recordable
InjuryInjuries about, for
30
3,000 what we have no figures
300
Accidents IMPROVEMENT
Near Misses (estimated) about.
600
Incidents
300,000
Incidents
(near miss)
At-Risk Behaviors (estimated)

The idea
1% Chipping of the tip does not

remove the iceberg.
I need to know more about what’s
“under water”.
I need to get everyone involved.
99%
I need to get “good quality” data on
what goes on “under water”.
I need to get a “picture” on the
current situation but also on its
development.
I need to “attack” the iceberg from
below.

What Does This Mean for Your Business?
How Does this Impact Health and Safety?
How Can We:
Consistently implement an incident management process

across global operations?
Efficiently support an active Safety Culture?
Know with confidence our incident performance and gain

better visibility into trends and risk “hot spots”?
Effectively implement a proactive risk management

approach and drive continuous performance improvement?
Streamline and ensure the accuracy and timeliness of our

health and safety reporting?
Embed the health and safety function into our operations

to ensure compliance and add business value across our
value chain?
© SAP AG 2009. All rights reserved. / Page 25
Objective of EHSM Incident Management
1
Fatality
30
•
Lost Workday Cases
Look into all kinds of safety relevant events 300

Recordable Injuries
3,000
•
Near Misses (estimated)
not only incidents but also safety observations and near misses 300,000
At-Risk Behaviors (estimated)
• Involve every employee of your organization into the process

• everyone can provide / record information
• encourage safety culture
• Ensure consistent and breach less management of all information
• no manual re-capturing of information
• clean handover of information
• keep track of progress
• Develop and provide a clear picture based on the gathered facts
• dashboard and statistical analysis to point out where and
how to improve safety

SAP EHS Management: Health and Safety –
Overview and Capabilities
What is it?
SAP EHS Management: health and safety functionality provides an enterprise-wide platform to help assure the
safety and well-being of employees and communities
Hazardous Substance Industrial Hygiene Incident Management Occupational Health

Management
• Substance • Work area management • Incident recording • Health surveillance
management • Risk assessment • Incident protocols
• Material safety data • Measurement investigation • Scheduling with OH
sheet import management • Incident processing planning cockpit
• Rule-based • Safety measures • Incident reporting • Medical service
classification • Injury/illness log
• Standard operating
• Release of hazardous procedures • Reporting
materials for purchase
• Person-related • Vaccination
• Hazardous substance exposure profile • Brief consultation
inventory
• OH reporting
• Substance information
system and tracking

SAP EHS Management: Incident Management
Focus Areas
• Support Safety Culture
Extending Incident recording to all
employees
• Provide Process Guidance

Support, standardization, and monitoring
via delivered standard processes and
work flows
• Help Ensure Compliance

Automatic determination of relevant
reports and audit proof documentation
• Promote Incident Prevention

Flexible analytical capabilities to achieve
transparency of risks
• Improve Data Quality

Individual inquiry forms for different roles
with SAP Interactive Forms software by
Adobe

Incident management process and integration
Best practice – seamless information flow and visibility
HCM, EAM, Fleet Management, Business Partner, Material Management, Health Risk Assessment
Data and Business Process Integration
Incident Prevention
Incident Incident Reporting

Initial and
Reporting Processing Investigation
Analysis
• Capture all incidents types • Gather all relevant information • Set targets
• Record near misses and • File regulatory reports • Monitor performance
safety observations • Investigate, determine cause • Manage exceptions
• Simple initial reporting by • Assess risks • Monitor process flow
anyone, online or offline • Trigger corrective actions • Identify, mitigate risks
• Manage actions and closeout • Deploy lessons learned
• Prevent incidents and best practices

Initial Incident Recording –
Description, Challenges, and Business Value
Incident Prevention
Initial Incident Incident

Reporting
 Intuitive sequence as guided activity

 Flexible adaptability with respect to
sequence and input structures
 Ability to capture non-structured
information for occasional untrained user
 Easier to customize structured
information gathering
 Initial reporting online via Web or portal
and offline via offline forms
 Various input scenarios for different initial
reporter group and competence

Example incident reporting user interface

Incident reporting: easy process

Incident Processing –
Incident Prevention

Reporting
Challenge: Solution:
• Need for systematic investigation approach  Robust and safe process guidance
• Information gathering from various involved  Flexible adaptability with respect to
individuals structured info gathering
• Varying legal needs due to jurisdiction or  Adherence to schedules due to reliable
local/regional regulations task management
• Various stake holders in incident process  Automized info request or testimonials
• Difficult monitoring of information and  Structured incident investigation
process flow and risk assessment
• Identification of involved  Automatic choice of relevant legal/
assets/environmental impact regulatory reporting
• Risk assessment and trigger follow-up  Comprehensive documentation tool
measures

Incident Processing –
Screen Example

Incident Reporting –
Incident Prevention

Reporting
Challenge: Solution:
• Standardized KPI setting and monitoring  Standard pre-built KPI reports
• Difficult diffuse processes  Flexible ad-hoc reporting with user-
• Compliance with regulatory standards friendly tools and graphics
• Ad hoc reporting as basis for incident  Flexible process monitoring (e.g., bottle-
investigation and prevention neck analysis)
• Monitoring and benchmarking  Dashboard integration for managers
• Exception management  Compliant regulatory reporting with

automatic determination of the right form
and approvals by simultaneously
tracking the timelines during the process
 Automized tractability of activity stream

Incident Management –
Analytics

The Business Case for Incident Management Process
Improvement – Reduce Costs and Risks
• Improve productivity
• Standardize and streamline incident
Decrease Costs
management processes
• Lower IT support costs
• Better assure compliance
• Enforce standard processes in operations
Reduce Risks
• Quickly detect and correct hazards
• Proactively reduce operational risks
Creating Business • Keep license to operate
Value
Protect Brand • Protect brand and reputation
and Revenue
• Win more business
Implement an effective safety culture enterprise-wide

Quick Start Implementation Program:
In 12 Weeks* You Can:
Reduce time and cost of incident

investigation and follow-up, while improving
results.
Automated incident management
Implement actionable safety program

Enable all employees to quickly and easily
report incidents, near misses & observations.
Simple capture and reporting
Gain visibility to trends and “hot spots” to

proactively reduce risks and prevent
incidents.
Real-time dashboards and
analytics
Wrap Up
• Make incident recordings as easy as possible
• Promote incident recording heavily
• Establish stable and efficient process for prevention
• Integrate your systems in order to manage risks effectively

• HR and Contractors
• Asset Management
• Fleet Management
• Occupational Health
• Industrial Hygiene and Safety
• Cost Accounting

Thank You!
Contact information:
Bernd Freibott
Director BD Global Sustainability Services Hub
SAP Sustainability Labs
Dornierstrasse 3
88677 Markdorf - Germany
BERND.FREIBOTT@SAP.COM

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Sustainable Safety Management:

Incident Management as a cornerstone for a

Incident Management in the context of EHS:

New approach to Incident Management:

© 2011 SAP AG. All rights reserved. 3

Executive Strategy Engagement & Benchmarking Materiality & Financial Risk

Environment, Environmental Industrial Health

Facility Energy Production Energy Carbon Natural Resource Smart Grid

Supply Sourcing & Traceability Green Supply Chain

Material & Product Recycling Sustainable Product

IT Availability, Security, Accessibility & Privacy Green IT

© 2011 SAP AG. All rights reserved. 4

3rd Party IND HYG.

Federal Facility Compliance Act China-RoHS

Multi Language Support OSHA / OHSAS 18001

ADR/RID ISO 14001

Kyoto-Protocol Clean Air Act

Any isolated approach

© 2011 SAP AG. All rights reserved. 7

© 2011 SAP AG. All rights reserved. 8

Gain visibility and control - align objectives,

Improve EHS performance - automate EHS

Maximize asset productivity - optimize

Direct costs of injuries,

Lost wages, lost

What’s possible? For a 10,000 employee company with “average”

© 2011 SAP AG. All rights reserved. 19

© 2011 SAP AG. All rights reserved. 20

Product Safety impact

© 2011 SAP AG. All rights reserved. 21

© 2011 SAP AG. All rights reserved. 22

What we see, what we notice,

© 2011 SAP AG. All rights reserved. 23

1% Chipping of the tip does not

© 2011 SAP AG. All rights reserved. 24

Consistently implement an incident management process

Efficiently support an active Safety Culture?

Know with confidence our incident performance and gain

Effectively implement a proactive risk management

Streamline and ensure the accuracy and timeliness of our

Embed the health and safety function into our operations

Look into all kinds of safety relevant events 300

• Involve every employee of your organization into the process

© 2011 SAP AG. All rights reserved. 26

Hazardous Substance Industrial Hygiene Incident Management Occupational Health

© 2011 SAP AG. All rights reserved. 27

• Provide Process Guidance

• Help Ensure Compliance

• Promote Incident Prevention

• Improve Data Quality

© 2011 SAP AG. All rights reserved. 28

Incident Incident Reporting

© 2011 SAP AG. All rights reserved. 29

Initial Incident Incident

 Intuitive sequence as guided activity

© 2011 SAP AG. All rights reserved. 31

© 2011 SAP AG. All rights reserved. 32

© 2011 SAP AG. All rights reserved. 33

Initial Incident Incident

© 2011 SAP AG. All rights reserved. 34

© 2011 SAP AG. All rights reserved. 35

Initial Incident Incident

• Monitoring and benchmarking  Dashboard integration for managers