OSHE Communication, Risk Assessment and Performance Measurement at AGI

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OSHE Communication, Risk Assessment
Performance Measurement in Acklands-Graingers
Distribution Centre Network
Frank ORourke, CRSP, Director, Environment,
Health Safety Andrew Cooper, CHSC, Manager,
Health Safety
CSSE PDC, Westin Ottawa Hotel September 13, 2006
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AGENDA

• EHS Message
• Acklands-Grainger Overview
• Managed Systems Approach
• Consultation Communication
• HIRARC
• Performance Measures
• Results

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EHS Message Business Travel

• Plan your trip - check the weather forecast and
  take the time to map out your route.
• Give yourself plenty of time to get to the
  airport to check-in and get through security.
• Ensure that you comply with speed limits, signs
  and other rules of the road. Adjust your driving
  practices to the weather and road conditions.
• Communicate regularly with your
  manager/supervisor or support person about your
  schedule and whereabouts.
• If youre traveling outside your home community,
  make sure your contacts at home or work know your
  schedule and know how to reach you. Upon your
  arrival, call a pre-arranged contact person to
  let them know you got there safely.
• When in customers facilities, ask about
  workplace hazards, control measures and emergency
  procedures relevant to your visit. Comply with
  all of their safety requirements when on their
  site.

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ACKLANDS-GRAINGER OVERVIEW

• Largest MRO supplier in Canada
• Revenues 600 Million
• 165 Branches
• 5 Major Distribution Centres
• Over 2,000 Employees
• 85,000 Active Customers
• 250,000 SKUs sold annually
• Division of W.W. Grainger (NYSE GWW) Largest
  MRO supplier in United States (5B in sales)

Canadas largest full line MRO distributor,
with strong specialist capabilities
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NATIONAL PRESENCE WITH LOCAL EXPERTISE
Serving Canada with over 165 Branches supported
by 5 Distribution Centres and 300 Sales
Representatives
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TRACK RECORD OF SUCCESS
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NATIONAL TECHNICAL SERVICES (NTS)

• Highest quality standards, complying with all
  regulatory/manufacturer standards
• Unique NTS preventive maintenance program
• Certified, factory-trained technicians
• Factory-authorized service centres
• 11 Service centers across Canada
• NTS provides comprehensive services in four
• distinct areas
• Gas Detection Equipment
• Self Contained Breathing Apparatus (SCBA)
• Industrial Equipment Maintenance and Repairs
• Rental of Safety Equipment

Widest commodity offering in the industry,
with strong breadth and depth in each
category
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EHS Mission

• Create an environment, health and safety culture
  throughout the organization consistent with the
  company vision.
• We will
• be a great place to work in which health, safety
  and employee development are paramount
• be an outstanding business partner for our
  targeted customers and key suppliers
• be a responsible corporate citizen

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CHALLENGE

• Geographic distribution
• Number of distinct branches
• Branches on customer sites
• Remote locations
• People on the road
• Product safety

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SAFETY CULTURE

• Executive support
• Consistent communication
• Good practices
• Everyone takes responsibility / accountability

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EHS MANAGED APPROACH

• Implement a comprehensive EHS system
• OHSAS 18001 / ISO 14001
• Risk based approach
• Collaborative
• Audit protocols that address regulatory, code and
  good management practice
• Leading indicator scores
• Enhance safety culture
• Communications , safety messages
• Ensure product safety

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EHS MANAGED APPROACH STRATEGY

• Choose a particular system or standard
• Determine the gaps between current practice and
  the desired system or standard requirements
• Prioritize the gaps
• Establish a plan to close the gaps (phased
  approach)
• Activate the plan and monitor performance

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EHS MANAGEMENT SYSTEM SCORECARD
Continual Improvement
100
90
80
70
EHS Policy
60
Management Review
50
40
30
Planning
20
10
Checking Corrective Action
Implementation Operation
EHS System Temperature
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• Communicate, communicate, communicate

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CONSULTATION AND COMMUNICATION

• Consistent Company Wide Communications
• Vision / Mission Lets Talk
• EHS web page
• Policies, Procedures Intranet
• Weekly Safety Messages
• Monthly Safety Tip Posters
• Quarterly Newslink Articles
• Quarterly Supplylink Articles

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MONTHLYSAFETY TIP
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CONSULTATION AND COMMUNICATION

• Specific Group Communications
• DC Manager Monthly Learning Community
• JHSCs Quarterly All Committee Teleconferences
  
• National Leadership Conference
• 100 senior leaders in the business
• Regional Leadership Conferences
• Branch managers
• DC branch communication meetings

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Some Time to Reflect
Take a moment to reflect on AGIs EHS
Communication approach and answer these questions

• How does it compare to EHS communication
  processes in your organization?
• Was there anything new that you would consider
  implementing?

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Hazard IdentificationRisk AssessmentRisk
Control
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WHY DO RISK ASSESSMENT?

• Need to answer these questions
• How big of a problem do we have?
• What hazards are effectively controlled already?
• Where do we start on improvement?
• Whats number 2, 3, 4, 5, etc.?
• How much do we have to do?
• When have we done enough?
• Will our investment be effective in reducing risk?

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HAZARD ID, RISK ASSESSMENT RISK CONTROL

• Develop methodology and approach
• Applicable reference standards
• Semi-quantitative
• Define risk terms
• Severity, Frequency, Probability and Avoidance
• Tolerable Risk
• Determine risk scales
• Risk formula
• HIRARC spreadsheet

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HAZARD ID, RISK ASSESSMENT RISK CONTROL

• High Level Screening HIRARC Review
• Hazard brainstorm session by major business unit
• Determine hazard scenarios
• Describe hazards and existing controls
• Determine severity, frequency, probability and
  avoidance factors
• Assess and document risks
• Evaluate the results in terms of tolerability and
  priority

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HIRARC WORKSHEET
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HAZARD ID, RISK ASSESSMENT RISK CONTROL

• Calibration of HIRARC Review
• Educate DC managers and JHSC re HIRARC process
• Re-visit high level screening HIRARC review
  hazard by hazard
• Reassess risk factors
• Re-calculate and re-evaluate risk
• Top Up
• Did we miss any hazards?

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HIRARC WORKSHEET
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HAZARD ID, RISK ASSESSMENT RISK CONTROL

• Impacts of HIRARC review
• Set improvement objectives for non-tolerable
  risks
• Identified action plans to mitigate risk
• Changes to
• EHS policy
• System document creation/review
• Key EHS rules
• Communication strategy
• EHS messages and tips
• EHS orientation and training

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Some Time to Reflect
Take a moment to reflect on AGIs HIRARC approach
and answer these questions

• How does it compare to Hazard Identification,
  Risk Assessment and Risk Control processes in
  your organization?
• Was there anything new that you would consider
  implementing?

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Performance Measurement
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PERFORMANCE MEASUREMENT

• What gets measured
• ..gets managed.
• ..gets done.
• ..gets changed.
• ..gets improved.

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PERFORMANCE MEASUREMENT

• System of EHS Reviews
• Specific to Business Unit
• Distribution Centres - Baseline, quarterly,
  monthly, daily
• Branches Quarterly, monthly
• New process to be launched in Q3 2006
• National Technical Services
• New process to be launched in Q3 2006
• Regulatory, code/standard, best practice
  requirements
• Percent Conforming Score
• Annual Review of the Review

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PERFORMANCE MEASUREMENT

• System of EHS Reviews
• Involves
• Senior Leadership
• Middle and line management and supervision
• Safety committees and representatives
• Provides input into quarterly business unit
  management reviews
• Yearly and Quarterly Improvement Targets
• Adding to the balanced scorecard measurements

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EHS Reviews
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PERFORMANCE MEASUREMENT

• EHS Review Quantitative Results
• Distribution Centres
• Baseline, Quarterly, Monthly and Daily Reviews
• Average Percent Improvement
• 25!

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PERFORMANCE MEASUREMENT
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QUALITATIVE RESULTS

• Improved
• Awareness and Focus
• Disciplined Approach
• Involvement / Buy-In
• Compliance and Conformance
• Due Diligence
• Evolving EHS Culture
• Managing by Objective and Measurement
• Proactive and Reactive Indicators of Performance

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Some Time to Reflect
Take a moment to reflect on AGIs Performance
Measurement approach and answer these questions

• How does it compare to Performance Measurement
  processes in your organization?
• Was there anything new that you would consider
  implementing?

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LEARNINGS

• You cant boil the ocean small chunks are more
  manageable
• A consultative approach is key
• Regulatory/Code requirements and Best Practices
  are a must
• Focus on Risks
• If you dont set goals you wont reach them
• 80 Implementing/Improving
• 20 Planning/Measuring
• Continual improvement is the name of the game

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NEXT STEPS

• Implement proven processes in other business
  units
• Consultation/Communication
• HIRARC
• EHS Reviews
• Continue system documentation and implementation
• Improve processes as performance improves
• Celebrate Successes

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Life is what happens to you while youre busy
making other plans.
John Lennon