Safety Management Systems and Leadership

1. Safety Management Systems and Leadership By: Bilal Barakat Al-Bataina Ralph Buchal ShahzadBarghi November 2015

2. Acknowledgements • The authors wish to thank the following organizations for their contributions, comments and suggestions: • Imperial Oil Ltd. • General Motors of Canada • Bruce Power • Minerva Safety Management Education Safety Management Systems and Leadership

3. Learning Objectives • Understand definitions and terminology. • Understand the general concepts and elements of safety management systems. • Understand the essential roles and responsibilities of leaders, managers and engineers. • Compare and contrast approaches to SMS in different industries. • Understand how to apply the universal principles of Safety Management Systems in any industry or context. Safety Management Systems and Leadership

4. Key Messages • Safety is often taught within a specific discipline or context, e.g. • Occupational health and safety • Process safety • Transportation safety • Etc. • Safety management systems have evolved largely independently in different disciplines. • Different terminology, assumptions, scope, etc. • The underlying concepts and principles are universal. Safety Management Systems and Leadership

5. Introduction to Safety Management Systems Safety Management Systems and Leadership

6. Introduction • A safety management system (SMS) is a systematic management approach to safety. • An SMS manages and minimizes safety risks. • Project management and leadership are essential elements. Safety Management Systems and Leadership

7. Core Elements of Safety Management Systems (SMS) • SMS focuses all parts of an organization on identifying hazards and reducing risks. • An SMS includes the following core elements: • safety management. • systems for identifying and controlling risk. • communication and coordination systems. • improvement process to reduce risks. • It involves Planning, Doing, Checking and Acting. • SMS encompasses all types of safety. • Elements of SMS can also be used to manage health, environment and security. • different risks and hazards but similar management systems around plan, do, check, act. Safety Management Systems and Leadership

8. History Safety Management Systems and Leadership

9. Boilers and Pressure Vessels Boiler explosion at Beaver Mills, 1893 (public domain). Safety Management Systems and Leadership

10. Boilers and Pressure Vessels Explosion of the steamer "Sultana", 1865 (Tennessee State Library and Archives). Locomotive boiler explosion, 1869. Safety Management Systems and Leadership

11. ASME Boiler and Pressure Vessel Code • First edition published in 1915. • The Code has undergone many revisions. • The Code is now used world wide. • Since the adoption of the Code, boiler and pressure vessel explosions have become very rare. Safety Management Systems and Leadership

12. Aviation Safety The evolution of Safety Safety Management Systems and Leadership

13. Automotive Safety Line graph of United States annual traffic deaths per billion vehicle miles traveled (VMT) vs. annual VMT (billions). (source: Wikipedia Commons, Dennis Bratland) Safety Management Systems and Leadership

14. Safety in the News Safety Management Systems and Leadership

15. Workplace Safety Workplace safety has improved dramatically in most developed countries. In many countries the death toll continues to be high. • Philippines factory fire kills 72; police launch investigation (Globe and Mail, May 15, 2015) • Bangladesh files murder charges in 2013 garment factory tragedy (Globe and Mail, June 1, 2015) • Coroner’s inquest into B.C. sawmill explosion resumes (Globe and Mail, May 11, 2015) • Construction of Sarnia power plant beset by worker safety problems (Globe and Mail, June 5, 2015) Safety Management Systems and Leadership

16. Rail Safety Considered one of the safest modes of transportation. Still can be improved. • North Dakota town evacuated after train carrying crude oil derails (Globe and Mail, May 6, 2015) • Canada, U.S. to announce new rail-safety standards for oil transport (Globe and Mail, April 30, 2015) Safety Management Systems and Leadership

17. Aviation Safety The safest mode of travel. Accidents are rare, but when they occur they are front-page news. • Approach and landing accidents like Halifax crash a long-time TSB concern (Globe and Mail, March 30, 2015) • After crash in French Alps, airlines move to change cockpit rules (Globe and Mail, March 26, 2015) Safety Management Systems and Leadership

18. Drug Safety The safety of new drugs needs to be carefully evaluated before they are released to the market. • How men who blighted lives of thousands with thalidomide evaded justice (Globe and Mail, November 25, 2014) • Reality check: New rules for naturopaths fail to ensure safety (Globe and Mail, June 7, 2015) Safety Management Systems and Leadership

19. Food Safety Generally the food we buy is safe to eat. Lapses in safety result in stories like these ones. • Company under review after raw meat, mould and fly found in Newfoundland university cafeteria (Globe and Mail, March 26, 2015) • Food safety watchdog suspends Costco Canada’s fish import licence (The Canadian Press, March 16, 2015) • Costco Canada recalls Kirkland roasted chicken salad because of listeria risk (The Associated Press, April 6, 2015) Safety Management Systems and Leadership

20. Natural Disasters Natural disasters are unpredictable “acts of god”. They cannot be prevented, but the consequences can be reduced. • Nepalese officials set two-storey limit on height of new buildings (New York Times Service, May 20, 2015) • Nepal quake death toll passes 5,000 as aid reaches villages near epicenter (The Associated Press, April 29, 2015) Safety Management Systems and Leadership

21. Marine Safety Ship safety has improved greatly over the decades, but avoidable tragedies still occur. • China orders ‘all-out’ rescue effort after boat sinks in Yangtze River (Globe and Mail, June 1, 2015) • Analysis: Costa Concordia sinking unlikely to spur quick changes to safety standards (Reuters, January 18, 2012) Safety Management Systems and Leadership

22. Vehicle Safety Traffic accidents are still a leading cause of death in many parts of the world. • 1.41 million Canadian cars affected by expanded air bag recall (The Associated Press, May 28, 2015) • Feds creating new law to compel vehicle recalls, fine car companies (The Canadian Press, June 2, 2015) • Safety concerns arise with increased use of cheap imported brakes (Globe and Mail, May 6, 2015) Safety Management Systems and Leadership

23. Product Safety We expect consumer products to be safe when used as intended. • Apple Inc. recalls Beats Pill XL speakers due to fire hazard from overheating batteries (Financial Post, June 3, 2015) • Keurig Green Mountain Inc. recalls millions of coffee makers in Canada and U.S. after reports of burns from spraying hot water (Bloomberg News, December 23, 2014) Safety Management Systems and Leadership

24. Definitions and Terminology Safety Management Systems and Leadership

25. Definitions • The next few slides define key terms including: • Safety • Hazard • Risk • Incident • System • Organization • Leadership and management • Stakeholders • Safety Management Systems Safety Management Systems and Leadership

26. Safety • Safety is “the state in which the possibility of harm to persons or of property damage is reduced to, and maintained at or below, an acceptable level through a continuing process of hazard identification and safety risk management”. • The International Civil Aviation Organization (ICAO) Safety Management Systems and Leadership

27. Hazard • A hazard is a condition with the potential to cause harm to people, property or the environment. • Hazards can be classified based on the severity or degree of harm they can cause. • It consists of three interacting components: • The hazard source, • the initiating mechanism, • and the target-threat outcome. • In order for an accident to occur, all three components must be present. Safety Management Systems and Leadership

28. Lac-Mégantic Example Consider the Lac-Mégantic rail disaster as an example: • The primary hazard source: • a large quantity of highly flammable crude oil. • The initiating mechanism: • the sequence of events that culminated in the derailment of the train, release of the oil, and ignition resulting in an explosion and fireball. • The target-threat outcome: • the death of 47 people, and the destruction of the downtown core. Safety Management Systems and Leadership

29. Risk • Transport Canada defines risk as: “the chance of injury or loss measured as the probability and severity of an adverse effect on health, property, the environment, or other things of value”. • The International Civil Aviation Organization defines the safety risk as “the predicted probability and severity of the consequences or outcomes of a hazard”. Safety Management Systems and Leadership

30. Driving versus Flying • As an example, consider the risk associated with driving versus flying the same distance. • The probability of an accident when driving is much higher than the probability of an accident when flying. • The severity of an aircraft accident is much greater than a car accident. • In terms of deaths per distance travelled, flying is about ten times safer than driving. Safety Management Systems and Leadership

31. Incidents • An incident is an unplanned sequence of events that results in people, property or the environment being exposed to and harmed by existing hazards. • A near-miss is an incident that did not result in harm, but had the potential to do so. • It is useful to classify the severity or consequences of an incident. • Note: the term “accident” is commonly used in place of “incident”. Safety Management Systems and Leadership

32. Classification of Incidents • Catastrophic: • Any event that may cause death or serious personnel injury, or loss of system (e.g. derailment and explosion of tanker train in a populated area). • Critical: • Any event that may cause severe injury, or loss of mission-critical hardware or high-dollar-value equipment (e.g. derailment of a tanker train in an unpopulated area). • Minor: • Any event that may cause minor injury or minor system damage, but does not significantly impact the mission. • Negligible: • Any event that does not result in injury or system damage and does not affect the mission. Safety Management Systems and Leadership

33. System “An organized, purposeful structure that consists of interrelated and interdependent elements (components, entities, factors, members, parts etc.). These elements continually influence one another (directly or indirectly) to maintain their activity and the existence of the system, in order to achieve the goal of the system”. -BusinessDictionary.com Safety Management Systems and Leadership

34. Organization • An organization is a system of people working toward collective goals. • Organizations have: • Structure. • Functional purpose. • Policies and guidelines. • Culture. • Organizations interact with their environment. Safety Management Systems and Leadership

35. Leadership and Management • Leadership is a process of leading people in the planning and achievement of strategic goals. Effective leadership provides the necessary resources and exhibits the right commitment and behaviors to effectively plan, implement, measure and sustain a safety management system. • Management is a process of directing people or entities to carry out plans that have already been established. Safety Management Systems and Leadership

36. Stakeholders • A stakeholder is any individual or group affected by the activities of a company or organization. • Stakeholders may be assigned specific responsibilities for elements of a safety management system. Safety Management Systems and Leadership

37. Survey of Safety Management Systems Safety Management Systems and Leadership

38. Safety Management Systems • Occupational Safety and Health Administration (OSHA) Process Safety Management. • International Civil Aviation Organization (ICAO) SMS Framework. • Transport Canada SMS for Civil Aviation. • Transport Canada SMS for Railways. • Imperial Oil Operations Integrity Management Framework (OIMS). • General Motors Safety & Industrial Hygiene (S&IH) Management System. • Bruce Power Management System. • Process Safety Management. Safety Management Systems and Leadership

39. The main elements of the OSHA Process Safety Management system • Establishment of and implementation of written procedures and policies. • Employee participation and training. • Systematic hazard analysis and risk assessment. • Develop and implement measures to address prevention, mitigation and emergency responses to incidents. • Investigate all incidents, and continuously improve the system. Safety Management Systems and Leadership

40. The ICAO SMS framework • Safety policy and objectives • Management commitment and responsibility • Safety accountabilities • Appointment of key safety personnel • Coordination of emergency response planning • SMS documentation • Safety risk management • Hazard identification • Safety risk assessment and mitigation • Safety assurance • Safety performance monitoring and measurement • The management of change • Continuous improvement of the SMS • Safety promotion • Training and education • Safety communication Safety Management Systems and Leadership

41. Transport Canada SMS for Civil Aviation Elements: • A safety policy. • A process for planning and measuring safety performance. • A process for identifying hazards and evaluating and managing risks. • A process for ensuring that personnel are trained and competent to perform their duties. • A process for proactive internal reporting and analysis of hazards, incidents and accidents. • Documentation of all the safety management system processes. • A process for conducting reviews or audits. • Any additional safety management system requirements that are prescribed under the part of the Canadian aviation regulations. Safety Management Systems and Leadership

42. Transport Canada SMS for Railways Elements: • Safety Policy, Annual Safety Targets & Associated Safety Initiatives. • Safety Authorities, Responsibilities & Accountabilities. • Employee & Representative Involvement. • Compliance with Rules, Standards & Orders. • Risk Management Process. • Risk Control Strategies. • Accident & Incident Reporting, Investigation & Analysis. • Skills, Training & Supervision. • Safety Performance Data Collection & Analysis. • Safety Audit & Evaluation. • Corrective Action Development, Approval & Monitoring. • Documentation. Safety Management Systems and Leadership

43. The Operations Integrity Management Framework (OIMS) • Eleven core elements: • Management Leadership, Commitment and Accountability • Risk Assessment and Management • Facilities Design and Construction • Information/Documentation • Personnel and Training • Operations and Maintenance • Management of Change • Third-Party Services • Incident Investigation and Analysis • Community Awareness and Emergency Preparedness • Operations Integrity Assessment and Improvement • The OIMS is driven by the first element, management leadership. The final element is used to drive continuous improvement of the system. Safety Management Systems and Leadership

44. Safety Management Systems and Leadership

45. General Motors Safety & Industrial Hygiene (S&IH) Management System • Built on foundational commitments, which are never compromised. • The corporate safety vision flows into a Global S&IH Policy and then further into management standards, performance standards and technical standards. Safety Management Systems and Leadership

46. MANAGEMENT SYSTEM STANDARDS GM Leadership is guided by the 5 elements of the Management System. • Policy & Organization • Planning • Implementation & Operation • Checking & Corrective Action • Leadership Reviews Safety Management Systems and Leadership

47. Bruce Power Management System • Defines vision, mission, values and key results. • Provides a clear leadership roadmap. • Defines leadership and management roles, responsibilities, authorities and accountability. • Specifies a detailed Plan-Do-Check-Act continuous improvement process. Safety Management Systems and Leadership

48. Bruce Power Management SystemLeadership And Organizational Accountability Defines: • Leadership and Corporate Structure • Role and Structure of Bruce Power Board and Executive Team • Role and Responsibilities of the President and Chief Executive Officer (CEO) and Direct Reports • The Hierarchy of Organizational Units Within Bruce Power Safety Management Systems and Leadership

49. Bruce Power Management SystemPlan-Do-Check-Act Process • Plan ‑ Program And Process Controls • Executive and Clear Program Ownership • The Governing Document Structure and Hierarchy • Business Plans • Controlled and Defined Metrics • Do ‑ Process Management • How Work Gets Done at Bruce Power • Peer Groups • Check ‑ Monitoring For Results • Performance Monitoring • Management Meetings • Corrective Actions • Benchmarking and Operating Experience • Assessments • Act – Continuous Learning • Process Improvement • Change Management Safety Management Systems and Leadership

50. Process Safety Management • Process Safety Management (PSM) is an SMS for prevention of loss of containment events. • Loss of containment incident (LOC) is defined as the release of energy or harmful substance(s) from the containers of equipment that is containing them. Safety Management Systems and Leadership