Auditing the HSE Management System

1. Auditing the HS&E Management System Janey Featherly June 8, 2005

2. Introduction Auditing the Management System Why audits are conducted What we audit How we conduct audits How results are used to verify system implementation & effectiveness How results drive continual improvement

3. Why Audits are Conducted Ensure we meet the commitments of our HS&E Policy Statement Ensure the Health and Safety of Employees Protect the Environment Ensure Compliance with Legal, Business and Client Requirements.

4. What We Audit HS&E Management System Structure Conformance with Procedures Level 2 and local Level 3 procedures Goals & Plans Legal, Business and Client Requirements. Legal requirements International and Industry standards Client Requirements

6. How we conduct the audit 3 Basic techniques are used Documentation & Records Observation of performance and conditions Interviews with managers, supervisors and employees

7. Documentation & Records Risk & Impact Assessment Legal, Business & Client Requirements Operational Control Procedures Training Communication Emergency Response Plans

8. Performance & Conditions Observation of work being conducted Performance of work against established procedures. Tour of the site Condition of the workplace to verify adequate controls are in place.

9. Interviews Managers and employees are interviewed to assess system elements Structure and Responsibility Communication Training

10. Auditing Tools Pre-Audit Questionnaire Standard checklists HS&E MS Elements Operational Controls Interview checklists Manager Employee

11. Auditing Tools Checklists Are consistently used for all audits Verification methods are included on the checklists Are shared with locations prior to the audit Via internal website

12. Auditing Tools HS&E MS Checklist is used to Assess implementation and conformance by element & operational control procedures Facilitates report preparation Document noteworthy efforts & best practices

13. Auditing Tools Interview Checklist Use to evaluate the status of elements Structure & Responsibilities Communication Training 

14. Audit Reports Results are documented in reports which include: Scope and Methodology Audit Findings Recommendations & Strategies for Corrective Actions Noteworthy Efforts

15. Continual Improvement Audit results are monitored in the following ways: Lead Auditor follow-up and communication on Corrective Action Plans Audit results are collected in a database for trending & identification of improvement opportunities Noteworthy efforts are analyzed to determine Best Practices which can be shared between locations

16. Continual Improvement Auditor Follow-up Corrective Action Plans Review to ensure appropriate actions to prevent re-occurrence Verification of implementation and effectiveness

17. Continual Improvement Trend analysis are conducted on audit results and reported to the HS&E Steering Committee to determine appropriate levels of action. Systemic issues Division or product line specific issues Regional issues Local issues

18. Continual Improvement Noteworthy efforts are reviewed by a Cross-Divisional audit team to determine Best Practices. Best Practices are communicated via HS&E Internal Website.

19. Conclusion Audits are conducted to ensure we meet the commitments made in our HS&E Policy Statement. They are used as a means of communication to drive continual improvement through education and employee involvement. Sharing Best Practices.