American Moving and Storage Association Conference October 9, 2012

1. 1 American Moving and Storage Association Conference October 9, 2012 www.fleetmetrica.com

2. A Systematic Approach to CSA www.fleetmetrica.com

3. 3 WHAT IS YOUR ORGANIZATION DOING DIFFERENTLY SINCE CSA WAS INITIATED??? www.fleetmetrica.com

4. 4 Safety Statistics – Large Truck Fatalities 27% less 33% less FMCSA wants to continue to see a decrease in fatalities www.fleetmetrica.com

5. 5 Safety Statistics – 2010 roadside inspections www.fleetmetrica.com

6. 6 Warning Letters Issued Note * - based on closed enforcement cases www.fleetmetrica.com

7. 7 Compliance Reviews Note * - based on closed enforcement cases www.fleetmetrica.com

8. 8 Today’s Objective • Be introduced to a way to improve CSA scores in a simple and structured way • Assess your company’s internal safety practices using our “CSA Risk Assessment Tool.” • Be introduced to tools to systematically improve CSA scores and your safety management system in a proactive way. • Be introduced to the Safety Management Cycle that can be used to continually improve CSA scores. www.fleetmetrica.com

9. 9 • IMPACT OF CSA ON TRUCKLOAD INDUSTRY • Increased number of motor carriers that could be shut down • Large carriers will have resources to address scores and performance issues • Greatest effect is to push drivers with poor safety records out of the market • Increase competition for drivers with strong safety records www.fleetmetrica.com

10. 10 • IMPACT OF CSA ON TRUCKLOAD INDUSTRY (cont.) • Upward pressure on driver pay (3-5%) • Continued tightening in driver availability • Tighter truck load capacity and higher truck load rates • CSA data to contribute to concern among shipper. Large shippers may begin to use CSA data to filter out carriers • Source – North American Equity Research – JP Morgan • May 10, 2012 www.fleetmetrica.com

11. 11 What has CSA Accomplished? • Directly monitors the safety performance on a monthly basis • Introduces a New Enforcement and Compliance Model • Helps identify problem areas for the trucking company • Helps identify problem drivers www.fleetmetrica.com

12. 12 Source: FMCSA Website www.fleetmetrica.com

13. 13 Source: FMCSA Website www.fleetmetrica.com

14. 14 Why Go Beyond CSA Scores? • CSA scores are the result or output of how well you manage safety in your business – you need to look beyond the scores to see what is driving these results • CSA scores are a result of those safety violations that are recorded during inspections and then entered into the MCMIS database • The Safety Measurement System assessments are based on these safety violations • If you are only reacting to individual CSA scores then you are operating in a reactive mode waiting for an incident or accident to occur to take action www.fleetmetrica.com

15. 15 What Does Going Beyond CSA Scores Involve? • Not stopping at threshold levels for each of the BASICs • Analyzing BASICs or Key Process categories further • Strengthening components within the Safety Management Cycle • Linking CSA results to your operation www.fleetmetrica.com

16. 16 Improving Beyond Thresholds Makes Good Business Sense your score threshold Cost ($) • less repairs & breakdowns • less accidents • less delays Savings BASICs Score www.fleetmetrica.com

17. 17 Preventing DOT Violations Proactive www.fleetmetrica.com

18. 18 Is This Your CSA Scores? www.fleetmetrica.com

19. 19 Is This Your CSA Scores? www.fleetmetrica.com

20. 20 Link CSA Results to Your Business • Violation: Defective trailer lights ? ? ? Maintenance Training Safety Hiring ? www.fleetmetrica.com

21. 21 Getting Started Survey the Company’s CSA Risk Assessment www.fleetmetrica.com

22. 22 What is the intent of the CSA Risk Assessment™? • To provide a simple assessment of a carrier’s safety management system • To enhance the usefulness of the Safety Management Cycle as a mechanism for improving safety and CSA scores • The use of Gap Analysis which is a tool that compares performance with potential performance. Where are we? www.fleetmetrica.com

23. 23 What Does the CSA Risk Assessment™ Consist of? • It surveys a carrier’s safety practices • It rates carrier performance around categories of the Safety Management Cycle • The questions are by no means a definitive list of leading safety practices, rather they are a random list of practices to gauge in general the strength of a carrier’s safety program www.fleetmetrica.com

24. 24 Your CSA Risk Assessment™ is Determined from a List of 60 Questions www.fleetmetrica.com

25. 25 How the Results Are Presented? 1= never, 2=seldom, 3=sometimes, 4=often, 5=always www.fleetmetrica.com

26. 26 Strengthen Components within the Safety Management Cycle www.fleetmetrica.com

27. 27 BASICs Categories • Unsafe Driving • Fatigued Driving • Driver Fitness • Controlled Substances/Alcohol • Vehicle Maintenance • Cargo-Related • Crash You can address Your CSA Scores By Addressing the BASICS and Violations Associated with each. www.fleetmetrica.com

28. 28 CSA Scores can be addressed by looking at the departments / key processes in a trucking company that can impact safety www.fleetmetrica.com

29. 29 Key Processes/Activities MaintenanceTrainingDriversLaw EnforcementCargo & HandlingThird Party (OSHA)OrientationPayrollPurchasing Dispatch Accounting Consumers Service Centers Family Issues Shipping/Receiving Operations Human Resources Recruiting www.fleetmetrica.com

30. 30 How Does the Safety Management Cycle Help Improve Your CSA Scores? Place the safety Management Cycle over each BASICs category or Key Process/Department when analyzing scores or individual violations Safety Management Cycle BASICs categories www.fleetmetrica.com

31. 31 What is the Safety Management Cycle? Structured Investigative tool Auditors will use this model to determine problem areas Steps to implementing a safety management process Never ending process www.fleetmetrica.com

32. 32 What is the Intent of the Safety Management Cycle? • To encourage carriers to operate more “compliantly” and “safely” • To assist carriers in the identification of safety management controls • To assist carriers in developing “corrective” and “preventive” actions based on high BASICs scores • To assist carriers in developing “early warning signals” and intervention strategies for high BASICs scores www.fleetmetrica.com

33. 33 Using the Safety Management Cycle to Improve Departments/Key Processes • To identify the “who” “what” “where” and “why” for the major departments/key processes in the organization • To introduce a process for evaluating the effectiveness of carrier departments/key processes on a regular basis • To demonstrate the interrelationship of company departments within the Safety Management Plan www.fleetmetrica.com

34. 34 Policies & Procedures www.fleetmetrica.com

35. 35 Definition – Policies & Procedures • Policies and procedures are typically organized around a carrier’s core business processes such as safety, hiring, training and maintenance. • A Policy is a guiding principle used to set direction. • A procedure is a particular way to of accomplishing an activity or a process.A series of steps to be followed. www.fleetmetrica.com

36. 36 Example – Policies & Procedures www.fleetmetrica.com

37. 37 Tips – Policies & Procedures Tips for strengthening Policies and Procedures: • What should be done • Who will do it • When it will be done and in what sequence • How it will be done • What equipment, tools or materials will be used • What forms or other documents will be used • Will the process be Flow charted • Signed, dated authority • Definitions • Referencing the Standards • Quality Records • Procedure Owner www.fleetmetrica.com

38. 38 Roles & Responsibilities www.fleetmetrica.com

39. 39 Roles & Responsibilities • Discussion topics: • Who is responsible for safety? • Making roles and responsibilities known throughout the company • Defining roles and responsibilities in your Safety Management System www.fleetmetrica.com

40. 40 Definition – Roles & Responsibilities • Roles and responsibilities for safety are defined within the company’s core procedures. • Roles and responsibilities are clearly and completely outlined in company job descriptions and appropriate training and evaluation is included www.fleetmetrica.com

41. 41 Review – Roles & Responsibilities www.fleetmetrica.com

42. 42 Qualifications & Hiring www.fleetmetrica.com

43. 43 Qualifications & Hiring • Discussion topics: • Defining the qualification and hiring activity • The impact of qualification and hiring on CSA scores • Key considerations in driver hiring www.fleetmetrica.com

44. 44 Definition – Qualification & Hiring • Covers practices that are essential in qualifying and hiring drivers and other staff for key positions affecting safety • These practices are identified in company procedures and are associated with specific job titles that have responsibilities for completing each practice. www.fleetmetrica.com

45. 45 Review – Qualifications & Hiring www.fleetmetrica.com

46. 46 Training & Communication www.fleetmetrica.com

47. 47 Definition – Training & Communication • Evidence of a training schedule and attainment of minimum skill level for all safety related personnel is outlined in company procedures and achieved by all safety related personnel. • Employees cannot be expected to properly perform their safety related responsibilities unless appropriate training has been provided and effective means for communicating safety related issues are in place. www.fleetmetrica.com

48. 48 Safety Management Cycle – Training & Communication • Tips for strengthening Training & Communication: • Open Channels in organization • Varied Format • Frequency • Do you know your training needs? • Do you have a training schedule? • Is there a record of training? • Is the training short, concise and focused • One topic at a time – 4 to 7 minutes • Make sure they are tested with a minimum acceptable score www.fleetmetrica.com

49. 49 Four Basic Steps in the Training Process • Establish a needs analysis: • Why is training needed? • What type of training is needed? • When is the training needed? • Who needs it and who will do the training? • Develop the training programs and manuals: • Covers Policies, Procedures or standards www.fleetmetrica.com

50. 50 Four Basic Steps in the Training Process • Deliver the Training program: • Designate the trainer. • Method of training to be used- one on one, groups, workshops or web based. • Evaluate the Training: • Pre/post surveys • Training documentation www.fleetmetrica.com