The Challenges of Implementing a Global Safety Program

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The Challenges of Implementing a Global Safety Program

  1. 1. The Challenges of Implementing a Global Safety Program Craig Torrance, PepsiCo Global Senior Manager Health, Safety and Well-being: OperationsCopyright © 2011 Rockwell Automation, Inc. All rights reserved.
  2. 2. Who is PepsiCo?• Largest Food and Beverage Company in Sales * ($Bn) North America and DJSI F&B category leader• Approx 300,000 employees• 19 mega brands (>$1bn)• Annual sales of PepsiCo products = $118bn *• 800 manufacturing plants globally• Consumer tastes, large customer base, market leading = need to move quickly $0 $5 $10 $15 $20
  3. 3. The Challenge in PepsiCo• Structure – Decentralization and autonomous divisions, sectors, business units and brands• Innovation, fast-paced, do-it-yourself culture, meet local tastes• Size – 300,000 employees, 800 plants• Growth – Logistics model dictates local manufacturing – new plants• Diverse supply chain – Beverage (CSD‟s/NCB), Chips, Cookies, Cereals, Dairy products, Juices, Agriculture (corn, potato, dairy)• Global reach – Operations in more than 99.9% of countries• Franchises/JV‟s• Lack of specific technical safety knowledge – machine safety Implementing a global safety program in PepsiCo is very challenging Copyright © 2011 Rockwell Automation, Inc. All rights reserved.
  4. 4. Implementing a Global Safety Program: Machinery and Equipment• Decision to focus on M&E based on current injury data and foreseen cultural benefits• NEW: Global M&E safety standard• Massive amount of existing equipment• $5bn annual spend on new equipment• Different „engineering work processes‟ in each business• low machine safety culture and knowledge Copyright © 2011 Rockwell Automation, Inc. All rights reserved.
  5. 5. The Roadmap Leadership Strategy Tactics Sustain • Take others with • SIMPLIFY • SIMPLIFY • Integration of you • Set clear roles, • Local resources and • Strategic plan responsibilities and implementation process • Objectives accountabilities plans • Audit • Milestones • Create metrics • SMART goals • Review • Communication • Communicate • Ownership transfer Performance Plan • Move from • Corporate tactical • Map to cultural • „Set the tone‟ Corporate to plan maturity model division/sector • Scorecards & AOP • Funding • Review and adjust • 3rd party supportSIMPLIFY – too often a global program gets „lost in the details‟ Copyright © 2011 Rockwell Automation, Inc. All rights reserved.
  6. 6. Leadership and Commitment• Achieving alignment before roll-out is critical to success• Commitment from CEO level– non-starter without – CEO and 5 division CEO‟s + HR EVP• Health and Safety Executive Council – 6• Global Operations Senior Vice Presidents - 10• Health and Safety Leadership Council - 12• Engineering Councils (VP and Director Level) - 40• Division and sector ideation - 30• All in all over 100 leaders needed to be aligned and on-board• Timeframe to do this – 9 months 1st phase of implementation is to COMMUNICATE the SLT commitment Copyright © 2011 Rockwell Automation, Inc. All rights reserved.
  7. 7. Leadership and Commitment• What does leadership and commitment look like? Copyright © 2011 Rockwell Automation, Inc. All rights reserved.
  8. 8. Strategy• Be able to articulate the strategy simply – think „elevator pitch‟• MESS strategy was in 3-parts – 1) New Equipment – 2) Existing Equipment – 3) Internal Capability Build• Know where the program sits within the broader initiatives – H&S Policy, GEHSMS, EHS Standards, Performance with Purpose, Sustainability• Be clear on objectives, milestones, ownership, timeline• External support needed for all 3 strategic elements Common not Identical Copyright © 2011 Rockwell Automation, Inc. All rights reserved.
  9. 9. Focus on a standard• PepsiCo standard becomes reference point for the program• Tools to support program based on standard• Standard does NOT include: Engineering guides, specifications, example wiring diagrams, risk assessment templates, explanatory text, etc.• Standard was simplified to what MUST be done (14 pages) with support guides to expand and provide greater coverage (100 pages) Simply Use of standard to arbitrate discussion and steer program Copyright © 2011 Rockwell Automation, Inc. All rights reserved.
  10. 10. Tactical Plans – New Equipment• All new equipment must be compliant by 1st Jan 2012• All new machines must have a risk assessment completed by OEM and reviewed by PepsiCo or assigned 3rd party• Internal stage gate processes, RACI, EWP‟s, etc to be implemented by all divisions (not identical)• RFQ‟s, RFP‟s, MPA‟s, Payment Schedules, Project documentation and specifications to be updated• All Project Managers, Engineering Managers, Procurement and H&S managers involved in new equipment projects to be introduced Copyright © 2011 Rockwell Automation, Inc. All rights reserved.
  11. 11. RACI for EWP safety integration New Equipment Project Team EWP RACI PT H&S site SSM Task Preparation of general safety requirements for1 Project Concept / Feasibility R C I project2 Issue Standard/specs Communicate requirements as part of RFx R A3 Bid Review Review safety design info with supplier. R C Ensure language in PO to meet PEP safety standard,4 Award PO R I A local legislation and local standards. Complete the Risk Assessment and Safety Design5 Detailed Design R R C Review -6 Equipment Build7 Acceptance Complete FAT or supplier safety sign-off testing R A8 Install/Debug Complete final install safety inspection R R A Hand over equipment safety manuals, risk9 Production / Hand over R I R I assessment, residual risk to site H&S manager 11
  12. 12. Tactical Plans – Vendor Engagement• 4 x 3-day roadshows – US, Europe, Latin America, Asia• Top M&E suppliers that constitute 80% of capital spend (120 supplier)• Broader communication to 6500 total capital suppliers• Supplier tools – safety packets, example Risk Assessments, training materials and expectations issued to suppliers• Positive affirmation from suppliers on meeting standard, cost/delivery impact and timeline. Best way to educate suppliers is face-to-face Copyright © 2011 Rockwell Automation, Inc. All rights reserved.
  13. 13. Tactical Plans – Existing Equipment• Simple “Pilot Study” sample – linked to funding and AOP• Every piece of equipment MUST be risk assessed with 3 years• Timelines to remediate vary by division – at least a10 year program• Online XPERT tool to share common solutions and approaches.• Global Risk Assessment database Major concern is funding upgrades for existing assets. All projects that „touch‟ an existing machine must bring it up to the standard - Project “Bundling” Copyright © 2011 Rockwell Automation, Inc. All rights reserved.
  14. 14. Existing Fillers
  15. 15. Tactical Plans – Capability Build• Objective - build top line capability to be able to identify and ask questions about non-compliance.• Utilize 3rd parties for in-depth discussion and validation and training delivery (Rockwell)• Locally owned• Centrally developed training materials• Competence mapping Sustainable program requires internal capability Copyright © 2011 Rockwell Automation, Inc. All rights reserved.
  16. 16. Sustain• Formal Audit Program in 2012• Set up XPERT machine safety community and working groups• Map to PepsiCo culture maturity model• Continual vendor engagement and support – Utilize external partners• Annual Equipment Supplier declaration• Tracking of machinery and equipment incidents Copyright © 2011 Rockwell Automation, Inc. All rights reserved.
  17. 17. Lessons learned• Leadership commitment and over-communication is IMPERATIVE• SIMPLIFY – machinery safety can be technical, engineers can over- complicate. Expect a lot of questions – Why? How? Who? When?• Allow businesses to take ownership and work out details within designated framework• Corporate role moves from strategy to setting expectation to support• In order to be successful there needs to be – Clear messaging from leaders – Steady drumbeat – Realistic and achievable goals – Accountability: Regular reviews and scorecard Complex problems sometimes need simple solutions Copyright © 2011 Rockwell Automation, Inc. All rights reserved.
  18. 18. Questions?Copyright © 2011 Rockwell Automation, Inc. All rights reserved.

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