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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

© 2011 SAP AG. All rights reserved. 4


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
© 2011 SAP AG. All rights reserved. 5
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)
© 2011 SAP AG. All rights reserved. 6
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

© 2011 SAP AG. All rights reserved. 7


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

© 2011 SAP AG. All rights reserved. 8


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
© 2011 SAP AG. All rights reserved. 13
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

© 2011 SAP AG. All rights reserved. 19


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

© 2011 SAP AG. All rights reserved. 20


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

© 2011 SAP AG. All rights reserved. 21


Swiss Chesse Model – Various failures for one incident!

© 2011 SAP AG. All rights reserved. 22


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)

© 2011 SAP AG. All rights reserved. 23


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.

© 2011 SAP AG. All rights reserved. 24


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?
© 2011 SAP AG. All rights reserved. 25
© 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

© 2011 SAP AG. All rights reserved. 26


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

© 2011 SAP AG. All rights reserved. 27


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

© 2011 SAP AG. All rights reserved. 28


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

© 2011 SAP AG. All rights reserved. 29


Initial Incident Recording –
Description, Challenges, and Business Value

Incident Prevention

Initial Incident Incident


Reporting
Reporting Processing Investigation

 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

© 2011 SAP AG. All rights reserved. 31


Example incident reporting user interface

© 2011 SAP AG. All rights reserved. 32


Incident reporting: easy process

© 2011 SAP AG. All rights reserved. 33


Incident Processing –
Description, Challenges, and Business Value

Incident Prevention

Initial Incident Incident


Reporting
Reporting Processing Investigation

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

© 2011 SAP AG. All rights reserved. 34


Incident Processing –
Screen Example

© 2011 SAP AG. All rights reserved. 35


Incident Reporting –
Description, Challenges, and Business Value

Incident Prevention

Initial Incident Incident


Reporting
Reporting Processing Investigation

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

© 2011 SAP AG. All rights reserved. 36


Incident Management –
Analytics

© 2011 SAP AG. All rights reserved. 37


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

© 2011 SAP AG. All rights reserved. 38


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
© 2011 SAP AG. All rights reserved. 39
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

© 2011 SAP AG. All rights reserved. 40


Thank You!

Contact information:

Bernd Freibott
Director BD Global Sustainability Services Hub
SAP Sustainability Labs
Dornierstrasse 3
88677 Markdorf - Germany
BERND.FREIBOTT@SAP.COM