Closing Meeting/5th Periodic Audit

OHSAS 18001:2007 &SA 8000:2008

DNV Audit Team

CLIENT LOGO
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 Audit Finding
FOCUS AREA: Improvement in Project safety
Positive indications:
Project safety set up is in place with 14 Zonal Safety officers working in tandem with SED.
Three Tier Safety inspection system set up for all work sites.
Positive track record with respect to reportable accidents so far.

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 Audit Finding
FOCUS AREA: Improvement in Project safety
Areas for Improvement:
Hazard identification and risk assessment with respect to hazardous work activities like
Work at height, and excavation is not adequately defined and the controls also not clearly
defined. Dependence on the contractors system is evident. But this system may vary contractor
to contractor and may not ensure uniform application of controls.
Evidence shows that application of Height work Permit is not properly implemented.
System of evaluation of contractor’s safety performance needs to be put in place. Some
quantifiable index to measure safety performance of contractors and necessary follow up action
needs to be ensured.
Internal audit of Project needs to be strengthened. The audit needs to look more into the
system rather than merely identifying unsafe areas. Both leading and lagging indicators, their
deviations and corrective actions needs to be assessed.
Incident reporting in projects is poor and needs to be improved. Analysis of the trend and
nature of incidents will help in strengthening the safety system.

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 Audit Finding
Management
Incident Analysis: Body part affected by injury has been analyzed and it
is seen that in 2011 almost 38% of all reportable accidents are due to finger
and hand injury. In the year also the picture is similar. However, further
analysis to reveal the underlying causes of this trend has not been done no
improvement actions have been initiate in this regard.
Hazard Identification and Risk assessment (HIRA): HIRA needs to be
made more comprehensive as it does not cover all hazardous work
activities. e.g Wagon Tippler area the cleaning of Grill under the tippler is a
hazardous activity but this is not covered in HIRA, inspection activity at
Blast Furnace Top is hazardous but this is also not identified for Hazard
identification and risk assessment. In all these areas controls are not
clearly defined and documented.

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 Audit Finding
Management
Incident Analysis: Body part affected by injury has been analyzed and it
is seen that in 2011 almost 38% of all reportable accidents are due to finger
and hand injury. In the year also the picture is similar. However, further
analysis to reveal the underlying causes of this trend has not been done no
improvement actions have been initiate in this regard.
Hazard Identification and Risk assessment (HIRA): HIRA needs to be
made more comprehensive as it does not cover all hazardous work
activities. e.g Wagon Tippler area the cleaning of Grill under the tippler is a
hazardous activity but this is not covered in HIRA, inspection activity at
Blast Furnace Top is hazardous but this is also not identified for Hazard
identification and risk assessment. In all these areas controls are not
clearly defined and documented.

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 Audit Finding
Management
Operation Control Procedures: OCPs or safe working procedures as
control measures are not referred to in HIRA document in many cases.
Example: SOP for Ladle preparation in SMS II. In some cases reference is
given but no such SOP exists. Example: in OHP, HIRA document has
reference to SOP for the activity of Coupling Unloader with Stacker. In reality
no such SOP has been made.
Accident Investigation: Accident investigation is weak and inadequate. In
the year 2011 out of 140 reportable accidents root cause analysis has been
carried out in a few cases (10-15) only. The quality of investigation also needs
to improve. On 24th of December an accident took place while Tap Hole Jam
cleaning. Water was spayed then suddenly liquid slag came out under
pressure hit a person near his neck. No analysis as to the methods employed
or issues involved is evident. The corrective action suggested was merely the
persons should have buttoned his coat properly.

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 Audit Finding
Management
Near Miss reporting: Near miss reporting is extremely poor. In some areas no reporting
is done in other areas reporting almost negligible. In 2011 only 69 near miss cases were
recorded. Near miss reporting needs to be encouraged as trend analysis of such near
miss cases provide valuable information for taking improvement measures in a proactive
manner.
Unsafe Conditions observed during the audit: a).75 KW Motor in Wagon Tippler is not
adequately earthed. b) The place where the De-coupler has to stand for decoupling the
wagons before tippling is unsafe. In spite of fall hazard the position is not adequately
fenced.
Application of work at Height at Height Permit in project area: Application of Work
height Permit in Projects area is inadequate. In construction Site of ASU IV a height
permit was issued by the contractor on 04-01-12. Two supervisors with a group of 7/8
workmen carried out the work. However, the name of the workmen has not been indicated
in the Permit. It is therefore not possible to assess whether the work was indeed carried
out by employees holding Height Pass and adequately trained and experienced to
undertake Height work.

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 Audit Finding
Management
Safety Committee meeting/consultation: Participation of workers in safety
management has not been planned & implemented. Plant Safety Committee does
not involve/consult the contract workers.
Process of critical task observation related to unloading of LOX from road
tankers to 2X20 KL not found effective as following are some of the observations
were made by the observers very frequently and no effective action was taken to
prevent recurrence: a) Not using appropriate PPEs such as Safety Shoes, Safety
Helmets, Leather/Asbestos Hand Gloves; b) Improper parking of road tankers in
LOX tank area; c) Not using Wheel Block/Stopper for road tankers
Work permit: Contrary to the requirement of ‘Guidelines for Working in a Confined
Space’ IPSS: 1-11-006-06, some of the vital requirements are not found complied
with. e.g.: Maintenance of records of space entry & exit time of the person (s) as
well as closure of the Permit no. 140558 dated 27.07.11 after the job completion
certifying removal men and material from the confined space.

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 Audit Finding/SA
Supplier Control-Materials Management:
There are more than 2300 registered vendor at BSP and materials
department conducts site audit to assess social performance of the vendor.
However, present system lacks in the following so to ensure effective
influence on vendor
*Time based action plan for coverage
* Sample selection criteria for site visit
* means/mechanism to identify sub-suppliers for possible influence

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 Audit Finding
Management
Calculation of basic living wage: The company pays basic minimum
wage as per wage circular issued by the state govt. along with additional
daily special allowances and additional welfare allowance to all contractor’s
workmen. In absence of Basic need wage calculation it will not be possible
to assess the gap in meeting basic needs against actual wage received .

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 Audit Finding/SA
Remuneration of wage to contractor’s employees
SMS-II: Based on the wage register it was found that actual wage was
distributed after the due date (23 Dec 11 for Sahi Construction) which was
also corroborated from workmen interview
SMS-II/Town Engg.Services: Practice of not mentioning the date of
certification of wage to witness payment in presence of authorised
representative of principal employer.
Education Services:
The education services department administer the functioning of educational
institutes benefiting the BSP and non BSP employee which is a noble social
endeavour. However, presence of a systematic approach to assess the
impact of this department’s performance in uplifting the literacy rate, socio
economic indicator would enable of sustainability commitment of BSP.

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 Audit Finding/SA
Medical Fitness of contractors’ employee
There is a system of taking “medical fitness” certificates before deploying
contractors’ employee in various production shops as well as project. While
verifying medical fitness at some of locations (SMS-II, Project Site BF-8)
during audit, it was found that certificate does not even mention fit or unfit
status.
Project Mechanical Complex:
As a part of health & safety requirements of SA the company shall
establish systems to detect, avoid and respond to potential threat to health
and safety of personnel. In absence of effective OHS risk assessment of
activities of the shop it would be difficult to address the same. (eg. Safety
instruction /notification with respect to significant Risk like Grinding job ,
high noise, welding OCP display in the shop floor not available)

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 Audit Finding/SA
PPE Compliance
There is use non standard PPE (shoes) by contractor’s employees and
present control of executing authority is not adequate.

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 Conclusion
 The organization is recommended for continuation of certification to
OHSAS 18001:2007 and SA 8000:2008 re-certification audit
 THE ABOVE FINDINGS ARE BASED ON THE SAMPLE AUDIT.
HOWEVER, THERE MAY BE ISSUES OF CONCERN IN AREAS
COVERED WITHIN THIS AUDIT AS WELL AS AREAS WHICH ARE
NOT COVERED DURING THIS AUDIT.
 THE ORGANIZATION NEEDS TO RESPOND WITH DETAILED
CORRECTIVE ACTION PLAN SO THAT COMPLIANCE COULD BE
SUSTAINED
 ORGANISATION NEEDS TO TAKE UP THEIR MONITORING AND
REVIEW PROCESS EFFECTIVELY TO FIND OUT AND RESOLVE
SHORT COMINGS EXISTING IN THE SYSTEM

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