Safety BHP Rev A

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    Internal information1

    Skanska Unlimited

    Safety Analysis between two businessesUnits

    July 2011

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    Objective of this presentation

    The main objective of these slides is to present andcompare both environments and safety conditionssurrounding the projects I have been involved in

    Skanska LA and Skanska Poland, as part of myassignment in Skanska Unlimited 2011.

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    Common objective across SkanskaWorldwide Five Zeros

    Zero Accidents: whereby the safety of our

    personnel as well as subcontractors, suppliers andgeneral public is ensured at and around ourprojects .

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    What is the goal of Skanska?

    The key responsibility of all Skanska Group companies, hereinafterreferred to as Skanska, is to develop and maintain an economicallysound and prosperous business.

    It is clearly stated in Skanska Code of Conduct:

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    It is also clearly stated in Skanska Code of Conduct:

    We provide a safe and healthy working environmentand are committed to continual improvement.

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    Good project

    Satisfaction of people realizing the project

    Clients satisfaction

    Margin

    Safety

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    A project is not a good project,when margin rises a few percent incomparison to the one stated inthe offer, but the project is notsafe.

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    Introduction

    To proceed with a comparison regarding safety withinand around construction sites in LA and Poland, wemust first highlight the differences between theenvironments and working conditions in both of them.In not doing so, wrong conclusions might beobtained, leading to corrective/preventive actionswhich dont take into account that different

    environments require different measures.

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    Skanska Poland

    Mainly a civil construction company, dedicated toerect buildings, bridges and roads.

    Most of these projects are government investments.

    Construction sites are often surrounded by thirdparties, who are either living or commuting.

    Regarding safety, only national or regional

    regulations must be complied. Clients do not havespecific standards on this matter.

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    Skanska LA

    Construction company dedicated mainly to developand construct projects related with oil/gas refining ortransportation, mining and in a minor scale, roads.

    Most of these projects are investments from privatefirms.

    Construction sites are often located far fromsettlements.

    Regarding safety, national, regional and standardsfrom clients must be complied.

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    Working Environments

    According to what was mentioned before, then theworking environments in Skanska LA are moredangerous than those from Skanska Poland, eventhough LA has an important advantage: no thirdparties in the surrounding areas, hence, no specialactions must be carried out to avoid people gettinghurt because of our operations.

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    Clients and their standards

    Clients in LA have their own library of standards andprocedures, which have the same force as lawswithin the scope of project. This, along with the set oflaws of the country which the project is beingdeveloped, creates a very rigorous environment,where incidents/accidents occur quite seldom.

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    Differences spotted

    CSMA personnel

    Safety equipment

    Prizes/Punishments

    Mindset blue collars/white collars

    Vehicles on the site

    Clients

    Third parties

    Safety @ ONESkanska

    Charts

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    Differences spotted

    CSMA personnel

    The first remarkable difference is the number of personnel assigned to HSE in the projects.

    In LA, the amount of people assigned to HSE depends mainly on the size of the project, and the client. The

    number (ball park) could go from 5 to 30 people, who are in every workplace considered dangerous. On thecontrary, in Poland, this number is significantly less (for instance, in ZOP there is only one person).

    About which one of the criteria is the correct, as it has been said, all depends on the kind of project and clientswe are working for. Having several people working for HSE has the advantage that they can focus only inthe safety within and around the working place, as well as having a different perspective of what is going onthe site, something that workers generally do not have.

    Nevertheless, what has been written hereinabove does not release workers, in any way, their responsibility toobey, and make others obey all the procedures of the company, it only provides them another point of view,in order to detect in a proactive way, situations that could lead to incidents/ accidents.

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    Differences spotted

    PPE

    Another difference spotted on the construction site is the use of PPE on behalf of the workers. Comparing bothbusiness units, PPEs used are mainly the same, comparing only civil projects. But if we analyze oil/gas

    projects, for example, clothing used in Poland would be strictly forbidden to use within the refinery, due toits electrostatic properties.

    Although PPEs are quite similar, its use within the project is not. Employment of all the PPE necessary on the

    site is not usual, and in some cases, is minimum. A temporary solution to this problem might be using alarge number of HSE personnel , who periodically check that all PPEs are being used. But the real solution

    to this issue lies in a major change on the mindset of workers, which represents a medium/long term project,because a question arises within them if I am working this way since a long time , and nothing ever

    happened , why should happen now?.

    PPE use is mandatory within Skanska LA, due to the policy adopted by the company, as well as the strict safetypolicy of its clients. It is important to take into account this last, because it had a major role in changing the

    mindset of workers and Skanska LA, as well as other construction companies.

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    Differences spotted

    Prizes/Punishments

    In Skanska LA, either the executive bonus program or incentive programs, which include almost all professionalsin the business unit, have as one of their targets the analysis and fulfillment of the HSE conditions which aredeveloped under the supervision of these professionals. Unsafe practices lead to a fall in the moneyreceived by the employee. This assigns a economical value to safety, and even though is not the most

    proper mechanism, it has been proved effective in several places around the world.

    No data has been registered of having this kind of program in Skanska Poland.

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    Differences spotted

    Mindset blue collars/white collars

    Another measure adopted by Skanska LA was the implementation of cards which allowed all employees, withoutany involvement of HSE personnel, collaborate with safety. This program is also known as the SafetyWatching Operative Card (TODOS).

    TODOS allows employees who detect unsafe conditions, to notify the HSE personnel, to prevent the occurrenceof incident/accidents.

    Proactivity is considered now as a key factor in the prevention of accidents (as we can the in the charthereunder), since is one of the drivers which change the mindset of workers, achieving with this that they

    start recognizing activities that are unsafe, in order to prevent accidents.

    Another program still in force in Skanska is the ESSV cards (Executive Site Safety Visit), which although is not amajor scale program, and it is not considered a proactive program, it allows to the personnel on the site, tosee which are the weaknesses in the project regarding safety, according to visits to the construction site,

    and if those shortcomings require any corrective action, take all necessary measures.

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    The Bradley Curve; a safety maturity model

    A units position on the curve is a summingup of all the employees behaviors

    A persons position on the curve is definedby his/hers behaviors

    Injury rate

    Maturity

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    We focus on safety

    Reactive Managers respond to major incidents

    Systems Managers respond to information aboutthe organizations safety performance

    Proactive Behaviors' Managers takepersonal responsibility for safety performance

    Compliance Managers focus on being legal

    Proactive Managers use risk assessments to

    improve safety performance

    No Action Accidents Happen!Injury rate

    Maturity

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    Management Meeting Skanska 2009

    Reactive Managers respond to major incidents

    Systems Managers respond to information aboutthe organizations safety performance

    Proactive Behaviors' Managers takepersonal responsibility for safety performance

    Compliance Managers focus on being legal

    Proactive Managers use risk assessments to

    improve safety performance

    No Action Accidents Happen!Injury rate

    Maturity

    0%

    14%

    47%

    27%

    12%

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    Domino theory

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    immediatecauses

    basiccauses

    Intermediatecauses

    rootcauses

    Risk management Lack ofcontrol

    Jobfactors

    Unsafe acts Accident

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    Differences spotted

    Vehicles on the site

    Regarding the use of cars on construction sites, we just only establish a partial comparison between bothbusiness units, since the area occupied by projects varies significantly between Skanska LA and SkanskaPoland. However, in the cases where cars are being used, these are equipped with systems that controland register the speed. When the speed goes up from a pre-established value on the device, an alarm

    starts to ring, and it lasts as long as the speed is above the limit.

    If the client requests these records, or if detects that some employee is driving unsafely within the limits of theproject, could ban the driving permit of the employee involved.

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    Differences spotted

    Clients

    The clients for which Skanska LA works, check and approve periodically works to be developed during theproject by means of working permits, on which are detailed the operations to be executed, beingsegregated in cold operations and hot operations. Clients evaluate and detect all possible dangerous

    conditions that could come up during these works, and set the safety conditions to be met during those

    works.

    Works can be executed only after this permit is signed by the client, and during the working period, the clientreserves his right to check and control that everything is being done according to this permit. If not, theclient could command the immediate stop of all workings, until these conditions are met.

    In doing this, both client and Skanska have clearly established the scope and procedures of works to beexecuted during the day, and all possible dangers.

    Skanska LA has a similar procedure within its library of standards: this is the AST (Working Safe Assignment),

    where besides all the dangers that could arise during tasks, all PPEs required for the task are listed.

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    Differences spotted

    Third parties

    Regarding this issue it is not possible to establish any kind of comparison because of what have been statedpreviously. But it is noteworthy that during the observation period, several times third parties have beenspotted on the construction site in ZOP, in the main road and the service roads as well, even though it isclearly signaled that entrance is strictly forbidden.

    This brings up a dangerous environment on the site, since workers should also watch over these persons health

    as well, on who the company is responsible in case of any accident.

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    Differences spotted

    Safety @ ONESkanska

    A remarkable feature of HSE in Skanska Poland, is the access to the safety website in ONESkanska, as well asa swift and easy access to the information related with accidents which happens in all construction sites, allaround Poland.

    This constitutes a very positive point in the HSE policy, that could be applied in Skanska LA, since it is reallyimportant that no only onsite personnel be aware of incidents/accidents, but also office personnel should beaware, and be aware of the dangerous conditions, since learning could be extracted from them, both foronsite and offsite.

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    Differences spotted

    Charts

    One minor difference spotted during this reconnaissance was the lack of charts, as it is shown below, alongsidethe whole project. In LA, these kind of charts are mandatory alongside the whole area of the project, to keepworkers and visitors aware of the safety conditions which must be met, in order to go into the working area.

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    Charts in job sites

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    Communication of H&S Boardactivities

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    Skanskas goal is to run business with the highest respect of the most

    important value human life.

    We aspire to achieve a corporate culture and mechanisms, which

    would make safety an ultimate priority.

    Creating a safe business culture is an important goal for managementpeople, who should in their human relations and actions always

    promote safety.

    Skanska wants to promote safety culture among its business partners

    as well as in communities in which we operate.

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    Changing the mindset

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    Change Skanska Bosses expectationsprofit andsafety oriented business.

    Change the image and perception of HSE specialist,strengthen their role and positive influence.

    Encourage Skanska employees and our businesspartners to take responsibility for own safety and theircolleagues.

    Build Health & Safety culture within organization,

    make HSE trendy.

    Creating awareness that our approach to safety inprofessional life affects personal life.

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    2001 2002 2003 2004 2005 2006 2007 2008

    TCIR %

    Safety is related to competence

    * Construction Skills Certif ication Scheme British certificates of trade skills and H&S

    Number of people

    being trained

    Accidents rate

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    Safety is our responsibility

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    Registering ofpotentially accidental

    situations

    Accidents rate

    TCIR Number of

    accidents

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    Vision 2013:safe & efficient

    Production bringingjob satisfaction

    Presentcondition

    Development plan

    Safe Production

    Changeattitude

    Understandneed for change

    Changebehavior

    Take no chanceswhen dangerous

    Detect risksbefore its too late

    Spinalreflex

    We take chances even though we know it is dangerous We don`t detect risk before it is too late

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    To change behaviour

    *Take no chances *Detect risks before its too late

    Competence

    C

    ommitted

    m

    anageme

    nt

    I

    nvolveme

    nt

    Selec

    tion+cooperation

    Sub

    -contractors

    Pla

    nning&

    Ris

    kmanagement

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