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Fleet Safety InitiativeStatus SummaryDeborah MajeskiDTE Energy Company
October 7, 2008
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DTE Energy’s Primary Subsidiaries are Gas and Electric Utilities
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Non-Utility Energy Related Businesses
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Impact of Motor Vehicle Accidents
Driving while on Cell Phone
Driving too fast for road conditions
Driving while Tex Messaging
Truck hits car at 65 Mph 2 Fatalities
Head-on Collision
Bucket trucktip-over
Head-on Collision
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Introduction
• Motor vehicle accidents cost employers over $60 billion annually in medical care, legal expenses, property damage and lost productivity.
• Average per-accident cost to employers -- $17,000 (National Safety Council)
• Average cost per non-fatal injury accident -- $110,000 (National Safety Council)
• Accidents drive up the cost of benefits such as workers’compensation, Social Security and health / disability insurance.
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Motor Vehicle Accident Statistics
2006 Motor Vehicle Accident Statistics
National Michigan DTE Energy
Accidents 5,973,000 315,322 110
Injury Accidents 2,575,000 81,942 12
Fatal Accidents 38,588 1,085 0
11581242
1343 1346 13461393
14421496
13651409 1373 1353
1398 1437
1329
1044 1074 10801036
927860
706651 677 643 609 632
559 567516
600 618665 651 691 716 714 721 734
810719 696
822770 809
557 565 590547 582 579
520585 571 553
505 531 559 567516
400
600
800
1000
1200
1400
1600
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Work-Related Fatal Events
Highway Incidents Homocide Falls Struck by Object
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Current State:• 442 motor vehicle accidents reported, including 58
involving injuries, reported between 1/2003 and 8/2008
• Total costs of motor vehicle accidents since 2003 exceed $12 million, based on NSC average costs of $17,000 per non-injury accident and $110,000 per injury accident
• No active “in-house” defensive driving training program beyond Commercial Driver License (CDL) training
• No tracking or risk assessment of employees driving on company business beyond traffic offenses for CDL holders
• No comprehensive vehicle accident data that provides an understanding of pressing issues across the enterprise
• Inconsistent implementation of policies and procedures for employees driving on company business
• Inconsistent / incomplete reporting of cost of vehicle repairs, medical care, property damage, workers compensation or litigation within business units or across the enterprise
Historic Motor Vehicle Accidents(Reported)
-
50
100
150
200
250
300
350
400
450
500
Num
er o
f Mot
or V
ehic
le A
ccid
ents
Injury 12 10 8 12 7 9
Non-Injury 45 56 80 98 66 39
Running Total 57 123 211 321 394 442
2003 2004 2005 2006 2007 2008 YTD
Historic Motor Vehicle Accident CostsFigures based on National Safety Council estimated cost of $17,000 per
non-injury accident and $110,000 per injury accident
-$2
$1
$4
$7
$10
$13
Cos
t in
Mill
ions
of D
olla
rs
Injury $1.320 $1.100 $0.880 $1.320 $0.770 $0.110
Non-Injury $0.765 $0.952 $1.360 $1.666 $1.122 $0.816
Running Total $2.09 $4.14 $6.38 $9.36 $11.26 $12.18
2003 2004 2005 2006 2007 2008 YTD
Past and Current State
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Ideal State
DTE Energy maintains a fleet safety program that:
• Provides training that improves employee’s ability to avoid personal injury and property damage while driving company or personal vehicles on the job.
• Monitors and assesses the risk of motor vehicle accidents for individual employees.
• Provides appropriate steps to mitigate risks associated with motor vehicle accidents through information/feedback loops and training.
• Consistently tracks the causal factors and costs associated with motor vehicle accidents.
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Project Charter
Form revision date: 05/18/2005
Version: # 06/02/08
Project Name: Proposed DTE Energy Fleet Safety Initiative – Program to Reduce Motor Vehicle Accidents
Ideal State
Gaps
Team Members & Roles
Problem Statement
Milestones/Countermeasures (actions, owners & timing)
Challenges/Risks
Current State Case for Change
Key Business Assumptions
Core Team Members:Support Team Members:Black Belt Mentor: Financial Analyst:
Estimated completion date of project
Gate Status: Pre Gate 1 Gate 1 Gate 2 Gate 3 Gate 4
Metric(s) Baseline Target Current
Number of motor vehicle accidents 73 TBD TBD
Cost of motor vehicle accidents (5 year average)
$2.25m TBD TBD
X
June 2009 Pilot Q4 2008
DTE Energy relies heavily on the use of specialized trucks, service vans and passenger vehicles to provide reliable delivery of power to its customers yet has no active program to mitigate risks/costs of motor vehicle accidents or consistent process for tracking causal factors and costs associated with motor vehicle accidents.
DTE Energy maintains a fleet safety program that:• Provides training that improves employee’s ability to avoid personal injury and property
damage while driving company or personal vehicles on the job.• Monitors and assesses the risk of motor vehicle accidents for individual employees• Provides appropriate steps to mitigate risks associated with motor vehicle accidents
through information/feedback loops and training.• Consistently tracks the causal factors and costs associated with motor vehicle accidents.
• No active driver safety training.• No tracking or risk assessment of employees driving on company business beyond
traffic offenses for CDL holders.• Minimal screening/evaluation of driving records for employees driving on company
business.• Inconsistent and incomplete reporting of costs associated with motor vehicle
accidents.
• Motor vehicle accidents were 3rd
highest cause of OSHA recordables for DO in 2007.
• DTE Energy recorded motor vehicle accidents between 2003 - 2007
• DTE Energy paid xx accident-related costs during period of 2003 - 2007.
• Training and driver risk assessment will reduce the number of injuries and costs associated with motor vehicle accidents.
• Improved record keeping will provide metrics needed to track and reduce costs associated with motor vehicle accidents.
• Cost of purchasing/providing training.
• Technical issues related to SAP LSO.• Uncontrollable causal factors for
motor vehicle accidents may make evaluation of training effectiveness difficult.
• DTE Energy operates over 2900 company-owned motor vehicles and many employees use personal vehicles for work.
• There is no active driver safety training for or risk assessment of drivers.
• No consistent method for tracking vehicle accident data within business units or across the enterprise.
Action Item Owner Due Date Status
Create RFP for suppliers of training and risk assessment TBD TBD TBD
Select supplier(s) TBD TBD TBD
Integrate training content with SAP LSO TBD TBD TBD
Initiate training and risk assessment TBD TBD TBD
Revise and implement accident reporting policies/procedures. TBD TBD TBD
Champion: Process Owner: Key Stakeholders:Team Lead:
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Core Team DeliverablesMotor Vehicle Accident ReportingA consistent method for documenting critical facts of all motor vehicle accidents.
BenchmarkingRanking of DTE Energy against other similar energy companies on key driver safety and motor vehicle accident cost metrics.
Mileage TrackingA consistent method for documenting number of miles driven by motor vehicles owned or leased by DTE Energy.
IT InfrastructureChanges to IT Infrastructure needed to implement record keeping and training.
Motor Vehicle InspectionsA consistent method for inspecting motor vehicles owned or leased vehicles for features critical to safe operation and damage prior to use.
Metrics / ReportsA consistent method for identifying, tracking and reporting critical indicators of fleet safety.
Training for DTE Energy EmployeesA plan for training DTE Energy employees who drive as part of their work.
Driver Risk AssessmentA consistent method for evaluating the risk associated with individual employees who drive motor vehicles owned or leased by DTE Energy.
Training for Affiliate CompaniesA plan for training affiliate employees who drive as part of their work.
Marketing / CommunicationsCommunication of Fleet Safety Initiative actions, features and benefits to employees who operate or manage employees who operate motor vehicles as part of their work at DTE Energy.
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Core Team Deliverables
Request for ProposalRequests for proposals (RFP) covering all goods and services that will be purchased from outside suppliers as part of the Fleet Safety Initiative.
Policies & Procedures for DTE Energy driversNew and revised policies and procedures for drivers of motor vehicles owned or leased by DTE Energy and personal vehicles used on company business.
Selecting Training SuppliersRecommendation of supplier for training materials.
Policies & Procedures for Affiliate CompaniesPolicies and procedures that implement Fleet Safety Initiative elements at DTE Energy affiliate companies.
Budget / ScorecardSet up tracking tools to monitor FSI spending and motor vehicle accident-related costs.
Legal IssuesEvaluation of potential legal exposure from new and revised policies and procedures relating to Fleet Safety Initiative project.
Fleet Safety DatabaseA database that manages data on motor vehicle accidents, motor vehicle inspections, and driver risk.
PilotImplement FSI in DO Service Operations and identify needed changes to FSI elements based on implementation.
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External Benchmarking ResultsDriver Training
– 80% do not provide any driver training for employees who operate company owned or leased motor vehicles
– 100% do not provide any driver training for employees who operate their personal vehicles on company business.
– 100% provide specialized training based on the type of company owned or leased on-road vehicles they operate.
– 80% provide general driver training applicable to any driver operating any type of vehicle to reduce the number and/or severity of motor vehicle accidents.
– 100% provide specialized driver training based on the vehicle(s) an employee operates to reduce the number and/or severity of motor vehicle accidents.
– 100% conduct regularly scheduled vehicle safety inspections.– The following delivery methods are used by companies surveyed to provide
driver training:• 60% use Instructor-Led provided by outside suppliers• 50% of the companies using Instructor-Led training include “hands-on”
components (participants drive vehicles as part of the training• 60% use Web-Based Training• 60% use Computer-Based Training
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External Benchmarking ResultsMotor Vehicle Policies
– 100% allow first responders or managers with multiple location responsibilities to use company owned or leased vehicles to commute between home and work.
– 90% do not allow employees to operate company owned or leased vehicles for personal use.
– 100% track the driving records of CDL-holding employees who routinely drive on company business
Motor Vehicle Related Metrics– 60% track motor vehicle accidents per million miles driven.– 60% track OSHA recordables resulting from motor vehicle accidents per million
miles driven.– 80% track the cost of motor vehicle accident repairs.– 60% track liability costs associated with motor vehicle accidents.– 70% - 90% of motor vehicle accidents reported during 2007 by companies
surveyed were classified as preventable.Motor Vehicle Repairs
– 80% use outside suppliers to repair company owned or leased vehicles damaged in accidents. The remaining 20% use both internal resources and outside suppliers.
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Benefits
Reduced incidence of motor vehicle accidents • Establish expectations regarding safe driving practices• Document and communicate traffic safety policies and procedures• Document management’s commitment responsibility, authority and
accountability for safe driver and vehicle operation
Decreased operating costs • Identify loss prevention and control strategies that will benefit DTE Energy’s bottom line
• Control costs associated with vehicle accidents in the workplace• Reduce exposure to motor vehicle-related liabilities
Enhanced record keeping • Satisfy local state and federal laws and regulations governing traffic safety in the workplace
• Bring motor vehicle accident tracking in line with industry standards• Provide an accurate and comprehensive picture of costs
associated with motor vehicle accidents• Improve tracking of motor vehicle accident causality
Improved employee relations and morale • Demonstrate concern for health and well being of employee’s family members
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RecommendationsReduced incidence of motor vehicle accidents • Invest in web-based defensive driving program:
– Initial – Remedial– Refresher – Ongoing
• Invest in hands-on driving program• Train high risk drivers in Smith Systems method
Decreased operating costs • Decrease injury and property damage costs associated with motor vehicle accidents by improving driving skills of DTE Energy employees who drive as part of their work
• Mitigate liability by developing a history of affirmative steps to increase driver safety among DTE Energy employees
Enhanced record keeping • Consolidate all motor vehicle accident related costs in one centralized location
• Enhance reporting of motor vehicle accidents to improve identification of causality and assess preventability
• Conduct routine motor vehicle inspections including safety equipment and damage assessment for all DTE Energy vehicles
Improved employee relations and morale • Promote “Driving safety to the heart” through proactive communication tools:
– Newsletter – Web site
• Provide training program for family members
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Program ElementsDatabase Centralized home for Fleet Safety data.
• Consolidation of accident data.• Motor Vehicle Records.
Risk Analysis Evaluation of individual driver’s risk based on:• Motor Vehicle Record.• Accidents with DTE Energy vehicles.• Performance on Web-based training.
Hazard Perception Evaluation
Evaluation of driver’s ability to identify potential hazards while driving.• Planned for use with high-risk drivers only.• Assignment of web-based training modules based on performance in
evaluation.
Web-Based Training All drivers in program complete at least 3 modules:• One module on relevant DTE Energy policies.• Two modules for all drivers in program.• Additional topical modules based on incidents (traffic citations or accidents
with DTE Energy vehicles).
Instructor-Led Training High risk drivers participate in instructor-led training:• Training includes on-road practice with feedback.
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Training DesignDTE Energy Policy Training • All drivers in the program complete training on current DTE Energy policies on use of company vehicles and
employee-owned vehicles for company business.• Passing score is 80%.• Participants re-take training until passing score is achieved.
Hazard Perception Evaluation • All high-risk drivers complete Hazard Perception Evaluation.• Additional remedial training modules are assigned based on areas needing improvement based on evaluation.• Participants re-take training up to three times to achieve passing score.• Supervisors provide assistance to drivers who cannot achieve passing score within three attempts.• Supervisors may recommend participation in instructor-led training for drivers who cannot pass remedial training.
Web-Based Training • All drivers in the program complete two web-based training modules over the course of one year.• Training topics selected for applicability to greatest number of drivers in the program.• Participants re-take training up to three times to achieve passing score.• Supervisors provide assistance for drivers who cannot achieve passing score within three attempts.
Incident-Triggered Web-Based Training
• All drivers in program who accrue additional “points” on driving record or are involved in preventable accident with DTE Energy vehicle receive one or more remedial web-based training modules.
• Training topics selected by supervisor from library of 26 modules.• Participants re-take training up to three times to achieve passing score.• Supervisors provide assistance for drivers who cannot achieve passing score within three attempts.• Supervisors may recommend participation in instructor-led training for drivers who cannot pass remedial training.
Instructor-Led Training • High risk drivers participate in Smith Systems instructor-led training to get hands-on experience with feedback from professional driving instructor.
• Assignment of instructor-led training based on accidents with DTE Energy vehicles, Motor Vehicle Record, performance on training and supervisor recommendations.
• We may have DTE Energy employees trained to present Smith Systems training.
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Sustainability Plan
Strategy Action1. Enhance Motor Vehicle Record
Keeping1. Streamline Motor Vehicle Record
Tracking or all Employees Driving on company business
2. Create Central Database for Motor Vehicle Accident Reporting
2. Develop a Central Motor Vehicle Accident Database to Track “all”Expenses associated with Vehicle Accidents
3. Enhance Vehicle Selection, Maintenance and Inspections
3. Review / Revise Vehicle lease Specifications, Maintenance and Inspection routines
4. Implement Sustainability / Communication Plan
4. Develop Baseline Metrics and Begin tracking Motor Vehicle Accident Data
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Unresolved Issues
• Criteria for designating a driver as “high risk.”
• Criteria for assigning drivers to instructor-led training• Threshold for including drivers who use their personal vehicles on
company business in the program• Identifying employees who routinely drive DTE Energy vehicles• Motor vehicle accident data to be captured in centralized database• Scope and frequency of motor vehicle inspections• Strategy for roll-out of pilot across Service Operations• Strategy for roll-out of program across enterprise
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Driving Fleet Safety Newsletter
Purpose – To communicate Fleet Safety Initiative progress to key stakeholders.
First Issue – Updates to core elements of Fleet Safety Initiative, including:
• Benchmarking• Communications• Budget/Scorecard• Driver Risk Assessment• Fleet Safety Database• IT Infrastructure• Legal Issues
• Metrics/Reports• Motor Vehicle Accident Reporting• Motor Vehicle Inspections & Pilot• Non-utility Training/Vehicles• Policies/Procedures• Training Supplier Selection
Deborah Majeski(313)235-7601
[email protected] Safety to the Heart!