Safety Management

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Safety Management
Sharing lessons between the oil drilling industry
and the Irish construction industry Tony
Allwright, BE, MEngScTallrite Incwww.tallrite.co
m
T C D ENGINEERING YEAR 3
Presented Live
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STORYLINE FOR TCD

• Intro What/Why Safety Hazards human
• Regulation Mgt vs Safety Mgt
• Good performers how achieved ?
• 12 ESM principles underlie 4 BBs
• Outstanding success, tho easily reversed
• Pre-1988 Conventional legislative approach
• Piper Alpha demonstrated widespread failures
• give examples
• Legislative revolution - Safety Case
• UKNS ? other NS ? other offshore ? onshore ?
  global ? with or without legislation
• Only one rule - demonstrate comprehensive hazard
  management
• ID hazards, ALARP defences (HW Procedures),
  contingency plans
• People aware/competent/motivated at all levels
• Places responsibility with only people who know
  the ins and outs of the business - the bosses and
  workforce

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What is Safety ?

• Danger Hazard Protection
• Managing Safety Identifying each
  hazard and
  Applying the most
  effective Protection

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Why bother with Safety ?

• Because otherwise people die

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Hazards in Industry

• Few and simple
• Weights,
• Height,
• Pressure,
• Tension,
• Fire
• Poison (eg air) .
• Traffic

So why do people die ?
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Safety Regulation and SafetyManagement
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Organization of the Drilling Industry

• Wells are drilled to search for and produce oil
  and gas
• vertical, slanted, horizontal, multilateral
• on land, offshore and in swamps
• usually inhospitable places, often remote
• Worldwide 2,200 drilling rigs
• Oilcos use contractor rigs plus sundry service
  contractors and equipment suppliers
• 11 major international drilling contractors
• 3 major international service contractors
• Countless other smaller contractors for
  everything
• Diamond Deutag Ensco Global Maersk Parker Pride
  RB Rowan Santafe Sedcoforex

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Safety Management issues common to the Drilling
Industry Construction Industry

• Drilling is a heavy industry as is Construction
• Apart from subsurface, the main hazards are
  shared -
• weights, height, pressure, tension, fire .
  traffic

Drilling sites do not even look so different from
construction sites
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Lost Time Accident FrequencyDrilling Industry
Total, Land Water, World-wide
In Safety, ...
1963 - Q1/2000
Drilling has made outstanding, measurable
progress ...
As at Sep 2001
01
Source IADC
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Lost Time Accident Frequencies in
1999/2000Drilling compared with selected other
heavy industries
and is now a world leader
? (LTAsgt3 days absence)
Updated 9/01 US Drlg
Sources IADC, UK-HSE, OSHA-BLS, Manitoba Govt,
Singapore Govt, Irish HSA
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The Twelve Key Principles of Enhanced Safety
Management

• 1 Visible Management Commitment
• 2 Line Responsibility
• 3 Policy
• 4 High, known standards
• 5 Performance Measures
• 6 Realistic Targets
• 7 Communication Motivation
• 8 Training
• 9 Advisers
• 10 Audit Inspection
• 11 Investigation
• 12 Contingency Planning

the result of applying ...
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The Four Building Blocks of Safety Improvement
which underlie

• BB1 Hardware
• gteg power tools, barriers, hat/boots
• BB2 Procedures
• gt eg for equipment, inspections, permit-to-work
• BB3 Skills
• gt training for HW procs on-the-job self-study
• BB4 Attitude (of each individual)
• gt willingness motivation to apply -
  consistently
• gt to seek out and rectify hazards
• Each element builds on the previous one
• Contrast cost effectiveness .

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Cost/Effectiveness of 4 safety elements
But, each element can only work when the
preceding one is embedded
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Legislation

• Pre-1988, all developed countries with an
  established oil industry (eg USA, UK, Australia,
  Netherlands) had their own (somewhat similar)
  legislation.
• Rules were prescriptive and very clear about what
  had to be done/not done
• But after 1988, a legislative revolution took
  place, as a result of
• Piper Alpha ..

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167 men died 58 survived
Piper Alpha
Piper Alpha, 6 July 1988
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CULLEN INQUIRY INTO PIPER ALPHA DISASTER held
Occidental management directly responsible for
the failings errors
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Legislative Revolution

• Cullen inquiry showed systems to be far too
  complex for a legislator to ever be able to
  legislate effectively -
• Led to SAFETY CASE concept
• A revolutionary change that over time spread
  beyond the UK North Sea to -
• rest of the North Sea
• rest of offshore
• rest of the world, onshore and offshore
• driven by
• Govts and
• the industry itself

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SAFETY CASE

• ? No longer - obey the rules of the
  legislators
• ? Now, every installation (eg rig, platform, gas
  plant) must
• Demonstrate your comprehensive hazard
  management, ie
• Identify your hazards
• Your ALARP defenses (both Hardware Procedures)
  
• Your contingency plans
• Your people communication systems and processes
• Workforce aware/involved/competent/motivated at
  ALL levels
• Your audit inspection programme
• Places responsibility with the only people who
  know the ins and outs of the business - the
  bosses and workforce
• No escape for management
• I followed the legislators rules, therefore Im
  not to blame
• Indeed you are the Safety Case rules were your
  own !

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A SAFETY CASE FOR EVERY INSTALLATION

• ? Has fostered a radical change in safety culture
  across the global oil industry, including the
  regulatory bodies.
• ? The norm (for the best) now includes
• Companies consulting their workforce at all
  stages
• Interlocking Safety Cases when two installations
  work together (eg rig and platform)
• Pre-project workshops involving client all
  sub/contractors
• Intelocking weekly/monthly safety meetings
  covering ALL
• No-blame incident-reporting investigation to ID
  weakspots
• Unsafe act identification by all staff all the
  time
• Openness measurements honest reporting
• PROTECT HUMAN LIFE NOT STAY OUT OF JAIL
• STOP system

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SAFETY

• Not an intellectual exercise
• About sending people home healthy and happy to
  their families
• Killing and hurting people is not part of our
  business
• - we are not an army at war
• ?

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LTAF Drilling Industry Total, Land Water,
World-wide
33 dead (9899)
Source IADC
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10
LTAFs of twobig, goodEP companies
Trend Flattening
4-fold improvement
Log Scale
1
LTAs per MLN man-hrs Company Contractors
combined
0.1
10
20-fold improvement
Trend Reversing
1
Log Scale
0.1
98
Source WOP, PDO
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What is blocking further progresswhen Hardware,
Procedures, Skills and Attitudes are all in place
?

• Human behaviour requires steering
• Attitude of people provides this but
  not enough direction, being based on
• the individual and/or
• his own company
• not the total operation
• not the cultures of different companies
• Thus, despite good attitude by all ...

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Client/Contractor Relationship can be an
impediment

• Client too dominant everyone complacent
• Delivers instructions - then relaxes
• Contractor receives instructions
• - no need to think
• Suffocates contractors own ideas identity
• But clients solutions may not be optimum
• Not tuned to contractors identity/culture
• Different clients make different demands
• Contractors people bound to be confused

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Pity Contractors 2 and 4 - which clients rules
do they apply ?
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What Client should NOT seek

• Anything you ask us, Mr Client, we will do it
• This will only ensure basic, simple rules are
  obeyed (blindly),
• But this is not enough !
• Everyone in every company/management must apply
  his/her best thought processes, effort and
  commitment, continuously

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What Client and Contractor each needs in equal
measure

• To have his own Safety identity- Safety
  Policy- Safety Management System- Safety
  Plans- "This is the way we do things around
  here
• To come up with his own ideas- Helping
  himself- Helping the client - Helping the
  client help his other contractors
• To take full ownership and responsibility- Pushin
  g his own safety message- Accepting his own
  accidents (without quibble)
• To require the same of his own subcontractors
• To be prepared to change his behaviour ..

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How each Contractor or Sub-contractor should
change his behaviour

• Do the right things not because Client wants it
  but because Contractor believes in it
• Make clear to his people that this is what this
  company demands
• Does not simply wait for the clients say-so
• Doesnt confuse his people by setting different
  standards for different customers
• Tells Client what he thinks Client is doing wrong

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How Client should change his own behaviour

• listen to and respect his contractors views
• recognize their answers may be superior
• encourage contractors to take key decisions (eg
  to lead task forces or investigations)
• Always combine client contractors stats
• Treat all his contractors and sub-contractors
• on a wholly equal footing with himself
• no party more important than any other (incl
  self)
• which leads to

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Optimised Relationships The 5th Safety Element
LO
Each element working only when the prec- eding
one is embedded

• Relation-
• ships

• Attitude

• Skills

Cost ()
Ease of implementn

• Procedures

• Hardware

HI
Effectiveness (Lives Injuries)
HI
LO
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What is the Client/Contractor Relationship ?

• Process of continuous communication
• ? ? ? ?
• Within between all companies in the operation
• Open-minded listening to the others views
• Ignoring pecking order, seniority, status etc
• Using only the force of rational argument
• Arriving at safety solutions that are
• optimum agreeable for all parties

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Who is responsible for managing the
client/contractor relationships ?

• Senior Managements of all the companies involved
  in the operation should initiate and provide
  impetus for the multidirectional communication
  required
• within their companies
• between their companies
• But any member of staff can and should discuss
  with peers counterparts and press for change
  from within.
• Dont wait for the boss or the client

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What might be a first step ?

• Organize a Joint Conference
• Senior middle managers of client all
  contractors subcontractors
• Jointly devise an agenda to develop, together, an
  action plan and identify problems, blockers etc

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COST of Managing the Relationship ?

• Mainly personal effort, belief, commitment -
• by everyone
• but especially the bosses
• Very little in
• But intense communication also yields improved
  technical performance
• Can expect a handsome return in both
• money and
• human lives

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Lost Time Accident FrequencyOf a large,
well-performing, land-based operation
The result of successful Relationship Management
Log Scale
Source PDO
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Oil price, rig count etc change nothing !

• Preserving integrity is vital to business
  survival in hard times (as in good)
• Financial (business controls)
• Technical (maintaining equipment)
• HSE (protecting people environment)
• Integrity should form part of every companys
  core Business Objectives

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Influencing Peoples Attitudes

• Requires continuous, consistent, focused
  communication
• amongst all companies in the operation
• at all levels
• in all directions
• Requires capturing the hearts and minds of
• client,
• contractors and
• sub-contractors
• ALIKE

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