Successful Safety Successful Safety & Health & Health

ManagementManagementPatrick SK PoonPatrick SK PoonIndustrial CentreIndustrial Centre

The HK Polytechnic UniversityThe HK Polytechnic University29 March 200429 March 2004

Topics CoveredTopics Covered Importance of OSH to Corporate Importance of OSH to Corporate

PerformancePerformance A Classic Example of Poor Safety A Classic Example of Poor Safety

Management: the Piper Alpha oil platform Management: the Piper Alpha oil platform disasterdisaster

Successful ExamplesSuccessful Examples Overseas experienceOverseas experience Hong Kong success storiesHong Kong success stories How to Create Corporate SupportHow to Create Corporate Support Open ForumOpen Forum

Industrial Accidents in Major Industries (1998 - 2001)主要行業之工業意外數字(1998 - 2001)

19588

14078

11925

9206

1301112549 12621

11914

63345499 5436

4385

659 961 1067 1252

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

22000

1998 1999 2000 2001

Year年度

No.

of A

ccid

ent

意外

數目

Construction Industry建造業

Catering Industry飲食業

Manufacturing Industry製造業Welfare Sector福利機構行業

Importance of OSH to Importance of OSH to Corporate PerformanceCorporate Performance

Some interesting statistics:Some interesting statistics: In Australia, 63% of leader companies In Australia, 63% of leader companies

reported fewer workplace injuries reported fewer workplace injuries relative to competitors, compared to relative to competitors, compared to 19% laggers.19% laggers.

In New Zealand, the comparative In New Zealand, the comparative results were 50% and 27% for leaders results were 50% and 27% for leaders and laggers respectively.and laggers respectively.

Importance of OSH to Importance of OSH to Corporate PerformanceCorporate Performance

Research elsewhere shows that –Research elsewhere shows that – Enterprises adopting best practice Enterprises adopting best practice

are high performers; they are also are high performers; they are also most likely to be leaders in OSH most likely to be leaders in OSH matters way ahead of competitorsmatters way ahead of competitors

OSH Performance and OSH Performance and Total Quality Total Quality ManagementManagement

General best practice and General best practice and OSH best practice are –OSH best practice are –

Most likely to be mutually Most likely to be mutually reinforcing given the reinforcing given the

synergies between OSH and synergies between OSH and quality approachesquality approaches

Business environment Business environment and competitive edgeand competitive edge

Why OSH investment?Why OSH investment? Why not leave it to insurance, the Why not leave it to insurance, the

medical system and social security medical system and social security to take care of work-related injuries to take care of work-related injuries and health problems?and health problems?

Why should the boss care if workers Why should the boss care if workers can’t be educated to take care of can’t be educated to take care of themselves? themselves?

BenefitsBenefits

Fewer insurance Fewer insurance claimsclaims

Fewer man-day Fewer man-day lostlost

Less medical and Less medical and legal costslegal costs

Enhanced Enhanced corporate imagecorporate image

Less employee Less employee turnover coststurnover costs

Less productivity Less productivity and quality losses and quality losses due to absenteeismdue to absenteeism

Fewer intangible Fewer intangible costscosts

All these costs add up to All these costs add up to eat into PROFIT MARGIN eat into PROFIT MARGIN

and affect SERVICE and affect SERVICE QUALIY!QUALIY!

Focus on Cost-Benefit Focus on Cost-Benefit Analysis to retain your Analysis to retain your

competitive edge in businesscompetitive edge in business

ARGUMENTSARGUMENTS

LEGAL REQUIREMENTSLEGAL REQUIREMENTS MORAL OBLIGATIONMORAL OBLIGATION SOCIO-ECONOMIC REASONSSOCIO-ECONOMIC REASONS CLIENTS’ EXPECTATIONSCLIENTS’ EXPECTATIONS

Classic Example of Poor Classic Example of Poor Safety ManagementSafety Management

The Piper Alpha oil platform The Piper Alpha oil platform disasterdisaster Summary of eventsSummary of events Analysis of failure in management Analysis of failure in management

based on findings of the board of based on findings of the board of enquiryenquiry

The Piper Alpha The Piper Alpha ExperienceExperience

At 10pm on 6 July 1988 an explosion At 10pm on 6 July 1988 an explosion occurred on piper alpha, a north sea occurred on piper alpha, a north sea oil rigoil rig

The subsequent fire burnt for 3 hoursThe subsequent fire burnt for 3 hours The rig, constructed from 12,000 The rig, constructed from 12,000

tons of steel, sank to the bottom of tons of steel, sank to the bottom of the sea the sea

166 men died during the incident 166 men died during the incident and 1 men died in hospital the next and 1 men died in hospital the next dayday

What is the Piper What is the Piper Alpha?Alpha?

Drilling derrick

Processing plant

Accommodation block

Pipeline to other rigs

Approximately 75 metre cube in size & 12,000 tons of steel

What Caused the What Caused the Accident?Accident?

A condensate pump in the A condensate pump in the processing plant failed processing plant failed

Management was not aware Management was not aware that maintenance work on that maintenance work on the spare pump was being the spare pump was being done and was incompletedone and was incomplete

What caused the What caused the Accident?Accident?

When the spare pump was When the spare pump was activated, it caused an activated, it caused an explosion followed by serious explosion followed by serious fire on the rigfire on the rig

The oil fire overheated a gas The oil fire overheated a gas line resulting in a subsequent line resulting in a subsequent gas explosiongas explosion

Important safety Important safety management issuesmanagement issues

Ineffective permit-to-work Ineffective permit-to-work systemsystem

No training on inter-platform No training on inter-platform emergenciesemergencies

Important safety Important safety management issuesmanagement issues

Inadequate emergency Inadequate emergency planning (majority of planning (majority of workers went to, and workers went to, and waited in, the waited in, the accommodation block and accommodation block and died from carbon died from carbon monoxide poisoning) monoxide poisoning)

Important safety Important safety management issuesmanagement issues

No training and drills to No training and drills to cope with such cope with such emergenciesemergencies

Safety audits not Safety audits not effectively followed up effectively followed up (e.g. Automatic water (e.g. Automatic water pump for fire-fighting) pump for fire-fighting)

Lessons learnt from Lessons learnt from the accidentthe accident

1.1. Safety is a management Safety is a management responsibilityresponsibility and support from the and support from the top must be visibletop must be visible

2.2. Safety managementSafety management is dependent on is dependent on systemssystems

3.3. Quality of safety managementQuality of safety management is is more important more than the more important more than the system itselfsystem itself

4.4. Quality safety auditQuality safety audit (and effective (and effective follow-up action) is critical to the follow-up action) is critical to the success of safety managementsuccess of safety management

Discussion of Discussion of ImplicationsImplications

Business survival: can any Business survival: can any company afford a major crisis or company afford a major crisis or disaster?disaster?

Emergency preparedness: how Emergency preparedness: how ready are you to deal with this ready are you to deal with this type of disaster?type of disaster?

Underlying factors Underlying factors of a major disasterof a major disaster

Lack of system to manage Lack of system to manage workplace health and safetyworkplace health and safety

Even when there is a safety Even when there is a safety management system, it is not management system, it is not effectively implementedeffectively implemented

What is a Safety What is a Safety Management Management

System?System?In broad sense, it is the In broad sense, it is the application of modern application of modern

management theories and skills management theories and skills to the field of.to the field of.

Occupational safety and health.Occupational safety and health.

To manage, you need To manage, you need “policy”“policy”

An effective safety policy An effective safety policy sets a clear direction in OSH sets a clear direction in OSH for the organization to followfor the organization to follow

Ensures a systematic Ensures a systematic approach to implementing approach to implementing

the safety policy through an the safety policy through an effective safety effective safety

management system.management system.

You need “planning”You need “planning”

Performance is measured Performance is measured against agreed standards to against agreed standards to

identify when and where identify when and where improvement is neededimprovement is needed..

You need You need “measurement”“measurement”

The organization evaluates The organization evaluates the the

OSH system and implements OSH system and implements improvement measuresimprovement measures

You need “auditing”You need “auditing”

Successful ExamplesSuccessful Examples

Overseas Experience:Overseas Experience: The DuPont style of commitment – The DuPont style of commitment – The DuPont Lycra® plant has been selected to The DuPont Lycra® plant has been selected to

receive the MOM Excellence Award (having receive the MOM Excellence Award (having qualified for three consecutive Gold Awards) qualified for three consecutive Gold Awards) under the Annual Safety Performance Awards under the Annual Safety Performance Awards schemescheme

DuPont sites won Ministry DuPont sites won Ministry Safety Awards in SingaporeSafety Awards in Singapore

The safety program has become a 'Safety The safety program has become a 'Safety Culture', the way we do our work, how we think Culture', the way we do our work, how we think and how we behave. Most important, in our and how we behave. Most important, in our safety culture, all of us demonstrated that we are safety culture, all of us demonstrated that we are brothers' and sisters' keepers and show personal brothers' and sisters' keepers and show personal responsibility for each other.responsibility for each other.

Demonstrating this "commitment in action" Demonstrating this "commitment in action" approach, the Lycra® plant's safety programme approach, the Lycra® plant's safety programme is coordinated by 11 separate sub-committees, is coordinated by 11 separate sub-committees, involving one-third of the 450-strong workforce. involving one-third of the 450-strong workforce. "The bottom line is safe operations. It is a "The bottom line is safe operations. It is a responsibility of every employee from the top responsibility of every employee from the top down," said the Plant Manager. down," said the Plant Manager.

Safety is our core value!Safety is our core value! "At DuPont, safety is a core business and "At DuPont, safety is a core business and

organizational value. Don't talk about organizational value. Don't talk about safety as a priority," Deak counsels. safety as a priority," Deak counsels. "Think back to Sept. 11, 2001. The "Think back to Sept. 11, 2001. The priorities of most organizations changed. priorities of most organizations changed. At DuPont, our business priorities At DuPont, our business priorities changed, but because safety, health and changed, but because safety, health and environment is a core value, it didn't environment is a core value, it didn't change. It's going to be there next year, change. It's going to be there next year, it's there now, it was there last year." it's there now, it was there last year."

--- --- Michael S. Deak, corporate director, Safety and HealthMichael S. Deak, corporate director, Safety and Health

Hong Kong Success Hong Kong Success StoriesStories

The Multi-disciplinary approach to The Multi-disciplinary approach to inspecting – inspecting –

public and private hospitalspublic and private hospitals

tertiary institutionstertiary institutions

Public and Private Public and Private HospitalsHospitals

BackgroundBackground Objectives of safety audit:Objectives of safety audit: evaluate OSH management in evaluate OSH management in

place, esp.place, esp. PolicyPolicy Organization of systemOrganization of system Hazard identification, risk Hazard identification, risk

assessment and controlassessment and control

Public and Private Public and Private HospitalsHospitals

TrainingTraining Inspection programmeInspection programme Accident reporting and investigation Accident reporting and investigation

systemsystem Emergency response plansEmergency response plans

Tertiary Institutes Tertiary Institutes Completed a round of inspecting all 9 Completed a round of inspecting all 9

universities and tertiary institutes in over universities and tertiary institutes in over a yeara year

MethodologyMethodologyOpening briefingOpening briefing

InterviewsInterviews Document reviewDocument review Physical condition checkPhysical condition check Report Presentation Report Presentation

Value and BenefitsValue and Benefits

Top management commitmentTop management commitment Accountability and responsibilityAccountability and responsibility Coordination of Improvements, Coordination of Improvements,

ResourcesResources BenchmarkingBenchmarking Promotion and trainingPromotion and training Continuous audit cycleContinuous audit cycle

How to Create Corporate How to Create Corporate Support for OSH?Support for OSH?

Open forum discussion ofOpen forum discussion of• Contributing factorsContributing factors• TacticsTactics• IdeasIdeas• SkillsSkills

ReferencesReferences

Why 'best intentions' often go to wasWhy 'best intentions' often go to waste?te?

The Top 10 Ways to Improve Safety The Top 10 Ways to Improve Safety Management Management

Self-evaluation: How well is your orgSelf-evaluation: How well is your organization managing risk?anization managing risk?

- The End -- The End -

Thank You !Thank You !