SAFETY AUDIT A KEY HAZARD IDENTIFICATION TECHNIQUE

1. SAFETY AUDIT A KEY HAZARD IDENTIFICATION TECHNIQUE A presentation by Subbarao • Cholamandalam AXA Risk Services www.cholaaxa.com

2. What is Safety Audit Verifying the existence and implementation of elements of occupational safety and health system and for verifying the system’s ability to achieve defined safety objectives ~~~IS-14489-1998 www.cholaaxa.com

3. CONCERNS OF MANAGEMENT • QUANTITY PRODUCED IN RELATION TO PRODUCTION SCHEDULE AND MARKET REQUIREMENT • PRODUCT QUALITY • PRODUCTION COSTS • INTEGRATING THE STAKEHOLDERS CONCERNS Is Safety Important? Not always www.cholaaxa.com

4. SAFE AND SOUND • A study of top companies in the world indicated that ‘Safety and Loss Prevention Programmes were essential for a company’s prosperity and accepted as part of good Business'. www.cholaaxa.com

5. Why do organizations have to bother about Safety • Corporate Strategy • Finance • Human Resources • Marketing, Product Design and Product Liability • Manufacturing and operating policy • Information Management and systems • Societal Concerns www.cholaaxa.com

6. Societal Concerns • Increased concern about the impact on the public not just the workforce concerned • Public intolerance of risks which do not have clear benefits to those affected • Readiness to press for retribution on those who cause harm and to seek compensation • Demand for increased transparency www.cholaaxa.com

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9. Demand for full information and for public involvement • A willingness to challenge and complain www.cholaaxa.com

10. Corporate Strategy • Business Mission, Philosophy and codes of ethics • Company image in the community • Environment impact • Management Professionalism www.cholaaxa.com

11. Finance • Loss Control and cost reduction strategies • Product liability, Legal liability, Property damage • Risk retention or transfer • Investment decisions concerning business acquisitions www.cholaaxa.com

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14. Human Resources • Work and job structuring • Morale and retaining people • Positive health structure www.cholaaxa.com

15. Marketing, product design and product liability • Specification of product and service • Legal requirement • International requirement • Consumer protection act www.cholaaxa.com

16. Manufacturing and operating policy • Design/selection/construction/maintenance of premises, plant, equipment and substances • Quality management • Environment management and waste disposal www.cholaaxa.com

17. Information management and systems • Identification of data critical to the management of health and safety • Selection of appropriate performance indicators • Use of information technology in the collection and analysis of essential data. www.cholaaxa.com

18. Organizations carry out • Safety Audit • Safety Survey • Safety Inspection • Safety Tour • Safety Sampling • HAZOP www.cholaaxa.com

19. Safety Survey: Detailed examination of a narrower field of activity-e.g.- key areas revealed by safety audits • Safety Inspection: Routine inspection-work is being carried in accordance with procedures etc. • Safety Tour: Unscheduled examination-hazards are removed-standards are removed www.cholaaxa.com

20. Safety Sampling: Trained observers record the number of safety defects seen while touring specified locations by a prescribed route. Typically tours last for 15 min. and are conducted at weekly intervals. The unweighted count of defects is used to portray trends in the safety situation. www.cholaaxa.com

21. MONITORING COMPARE ACTUAL PERFORMANCE -STANDARDS COMPREHENSIVE CONTINUOS AUDIT NOT DONE BY INSIDER NOT COMPREHENSIVE-DEPENDS ON SCOPE PERIODIC SAFETY AUDIT www.cholaaxa.com

22. DIFFERENT TYPES OF AUDIT • Electrical Audit • Fire Safety Audit • Pressure vessels Audit • Lifting Tackles Audit • Statutory Regulations Compliance Audit • Emergency Communication Audit • Pipe lines Audit www.cholaaxa.com

23. Safety Depends on Accident and incident analysis Work permit Hardware Engineering Software Emergency Procurement Humanware Maintenance Leadership PPE Health and Hygiene Task observation www.cholaaxa.com

24. SAFETY AUDIT • OCCUPIERS ARE REQUIRED TO DEMONSTRATE THEIR CAPABILITY TO DESIGN LOCATE OPERATE AND MAINTAIN THEIR FACILITIES TO STANDARDS ACCEPTABLE TO THE GOVT. AND PUBLIC. www.cholaaxa.com

25. AUDIT • AN AUDIT IS A SYSTEMATIC INDEPENDENT REVIEW TO VERIFY CONFORMANCE WITH ESTABLISHED GUIDE LINES OR STANDARDS. IT EMPLOYS WELL DEFINED REVIEW PROCESS TO ENSURE CONSISTENCE AND TO ALLOW THE AUDITOR TO REACH DEFENSIBLE CONCLUSIONS. www.cholaaxa.com

26. OBJECTIVES OF THE SAFETY AUDIT • DESIGN DEFICIENCIES AND ALSO WEAKNESSES WHICH MIGHT HAVE CROPPED UP DURING MODIFICATIONS /ADDITIONS. • FIRE PROTECTION ARRANGEMENTS AND SAFETY SYSTEMS. • OPERATING /MAINTENANCE PROCEDURES-DEGRADED WITH TIME • TRAINING, PREPAREDNESS FOR HANDLING EMERGENCIES. www.cholaaxa.com

27. SCOPE OF AUDIT • FIRE AND EXPLOSION; PREVENTION, PROTECTION AND EMERGENCY MANAGEMENT. • WORK INJURY PREVENTION. • HEALTH HAZARDS CONTROL. • CONSEQUENCES OF EMERGENCIES. • ON SITE EMERGENCY CONTROL www.cholaaxa.com

28. Elements of Occupational Safety and Health System-IS14489 • Occupational Health and Safety Policy • OS&H organizational set up • Education and Training • Employees participation in OS&H Management • Motivational and Promotional measures for OS&H • Safety Manual and Rules • Compliance with Statutory Requirements • New Equipment review and inspection www.cholaaxa.com

29. Elements contd.. • Accident reporting analysis investigation and implementation and recommendations • Risk Assessment including hazard identification • Safety inspections • Health and safety improvement plan/targets • First aid facilities-Occupational health center • Personal Protective Equipment • Good housekeeping • Machine and general area guarding • Material handling equipment www.cholaaxa.com

30. Elements contd.. • Electrical and Personal safeguarding • Ventilation, illumination and noise • Work environment monitoring system • Prevention of occupational diseases including periodic medical examination • Safe operating procedures • Work Permit systems • Fire Prevention, Protection and fighting systems • Emergency Preparedness plans(onsite/offsite) • Process Plant modification procedure www.cholaaxa.com

31. Elements contd.. • Transportation of hazardous substances • Hazardous waste treatment and disposal • Safety in storage and warehousing • Contractor safety systems • Safety for customers(including MSDS) www.cholaaxa.com

32. Records to be examined during Audit • OS&H Policy • Safety organization chart • Training Records on safety, fire and first aid • Accident investigation reports • Accidents and dangerous occurrences-Statistics and analysis • Records of tests and examination of equipment and structures • Safe operating procedures for various operations • Record of work permits • Record of montioring of flammable and explosives www.cholaaxa.com

33. Records- Contd.. • Maintenance and testing records of fire detection and fire fighting equipment • Medical records of employees • Records of industrial hygiene surveys(noise, ventilation, illumination levels, airborne and toxic substances, explosive gases) • MSDS • Onsite emergency plans and record of mockdrills • Records of waste disposal • Records of effluent discharge to the environment • Housekeeping inspection records www.cholaaxa.com

34. Records contd.. • Minutes of Safety committee meetings • Approval of layouts and other approvals from statutory authorities • Records of any modifications carried out in plant and process • Maintenance procedure records • Calibration and testing records • Shutdown maintenance procedures • In service inspection manuals, records including that of material handling • Safety Budget • Statutory Records, Previous audit reports, Transportation of Hazardous substances www.cholaaxa.com

35. TOPICS ON WHICH INFORMATION IS COLLECTED • SAFETY ORGANIZATION. • CONTRACTOR EMPLOYEE ACTIVITIES. • MATERIAL SAFETY DATA. • OCCUPANCY. • SAFETY AND HEALTH POLICY. • OPERATION AND MAINTENANCE OF SAFETY MANUAL. www.cholaaxa.com

36. EXPANSION MODIFICATION -AUTHORIZATION PROCEDURES. • SAFETY EDUCATION , TRAINING. • STATUTORY STANDARDS, SAFETY IF • JOB SAFETY ANALYSIS. • JOB SAFETY INSTRUCTIONS www.cholaaxa.com

37. .TOPICS CONTD. • SAFETY INSPECTION. • SAFETY OBSERVATIONS. • WORK PERMIT SYSTEM. • FIRE PROTECTION ARRANGEMENTS • FIRE EMERGENCY CONTROL PROCEDURES. • WORK ENVIRONMENT MONITORING. www.cholaaxa.com

38. PERSONAL PROTECTIVE EQUIPMENT. • MEDICAL/AMBULANCE FACILITIES. • ACCIDENT/INCIDENT -REPORTING INVESTIGATION ANALYSIS. • IDENTIFICATION OF CRITICAL EQUIPMENT AND PREUSE INSPECTION OF CRITICAL EQUIPMENT • OFF THE JOB -SAFETY. • STATISTICAL INF. ON LOSSES INJURIES. www.cholaaxa.com

39. Manufacture, Storage and import of Hazardous Chemicals Rules, 1989 • Safety Audit is required to be carried out by by the occupiers of both the new and the existing industrial activities with the help of an expert not associated with such industrial activities. • This is required under Rule No.10-subrule (4) • This has come into effect from 3/10/94 www.cholaaxa.com

40. Traits of an auditor • Dispel the myth that it is policing on behalf of management • Is questionnaire useful? • Knowledge in the area being visited • Blinkered view? • Discussion is more important-Facilitator rather than an inspector. www.cholaaxa.com

41. Are you a good auditor? • FINISHED FILES ARE THE RESULT OF YEARS OF SCIENTIFIC STUDY COMBINED WITH THE EXPERIENCE OF YEARS www.cholaaxa.com

42. Safety Leadership is key to success Wayne Pardy, CRSPwww.cholaaxa.com Survey by Linkage, inc., 1999

43. Safety Culture • Liveware • Safety Culture • Hardware Software Acts-Practice-Habit-Behavior-Culture www.cholaaxa.com

44. Coincident or Not ? If, A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Equals, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Then, K + N + O + W + L + E + D + G + E 11 + 14 + 15 + 23 + 12 + 5 + 4 + 7 + 5 = 96% H + A + R + D + W + O + R + K 8 + 1 + 18 + 4 + 23 + 15 + 18 + 11 = 98% Both are important, but the total falls just short of 100% But, A + T + T + I + T + U + D + E 1 + 20 + 20 + 9 + 20 + 21 + 4 + 5 = 100% Safety really is about attitude. Make 100% Safe Behavior your choice both ON and OFF the job www.cholaaxa.com

45. Safety and Incident Prevention Depends how much on ATTITUDE ? A T T I T U D E = = = = = = = = 1 20 20 9 20 21 4 5 100% www.cholaaxa.com