TMHE and EU-OSHA Reflect on Health and Safety Culture


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Toyota Material Handling Europe (TMHE) and EU-OSHA recently explored the meaning of an organisational health and safety culture together during a benchmark event on 5th and 6th June 2013.

Peter Carlsson, Vice President Production Powered Trucks at TMHE, and Dave Mason, Head of Global Health and Safety at Electrocomponents, define the main points that make a company’s culture and the roles that the Toyota Production System (TPS) and employee engagement play in it.

Visit our website to find out more about our efforts to improve health and safety:

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TMHE and EU-OSHA Reflect on Health and Safety Culture

  1. 1. Safety and health at work is everyone’s concern. It’s good for you. It’s good for business. Workshop 4 The Health and Safety Culture of an Organisation A Joint Exploration of Safety Culture with Electrocomponents and Toyota
  2. 2. Purpose of the Session  What is the definition of culture?  What makes a culture good or bad?  What can you measure?  What does this tell you?  Case Studies
  3. 3. Who are we? Dave Mason Electrocomponents Head of Global Health and Safety Peter Carlsson Toyota Material Handling Europe Vice President Production Powered Trucks
  4. 4. Dave Mason My Background:  18 years in the British Nuclear Industry – Variety of roles, before I left, I was the Head of Assurance for a Category 1 Nuclear Facility.  5 years running my own consultancy – corporate clients both nationally and internationally.  Currently with RS Components as Global Head of Health and Safety, responsible for the H&S of 7500 employees located in 32 countries over four regions.
  5. 5. 5 Who is Electrocomponents?
  6. 6. 1. DEFINITIONS
  7. 7. Culture Definition Group exercise: Define: “what is culture?”
  8. 8. Culture Definition Some common definitions:  The way we do things around here  A collective vision applied as a group  A shared set of values being applied in a consistent way
  10. 10. What Makes up a Culture? Some Generic Examples: • Vision Statements • Visible leadership • Values and Behavioural Initiatives • Employee competency • Performance measurements and KPIs • History – where have you come from
  11. 11. Examples
  12. 12. Cultural Influences Group Exercise: List signs that might suggest : A Positive Culture.... A Negative Culture....
  13. 13. 3. WHAT CAN YOU MEASURE?
  14. 14. Some Examples: • Employee surveys – How do our employees feel • Pro-active measures – Dual Assurance • External benchmarking - Performance • Leadership behaviours – Visible and tangible • The „X‟ Factor – What we see and feel/instinct • How H&S is managed – Professional networks • H&S Communication - Evidence and age Cultural Indicators
  15. 15. 4. CASE STUDY: ‘The importance of continuous employee engagement to improve health and safety culture and business performance’
  16. 16. Why does employee engagement matter to us? Shareholder returns Profits / Operating Margins Customer Loyalty Employee Productivity High engagement organisations generate 22% above average returns for shareholders (Source: Aon Hewitt) High engagement businesses have operating margin up to three times better than low engagement businesses (Source: Towers Watson) High engagement teams have a very positive measure of customer loyalty – low engagement teams had a negative measure (Source: Serco Plc / Aon Hewitt) Business units with engaged employees are an average 18% more productive (Source: Gallup) Health and Safety Employee Wellbeing Retaining Key Employees Continuous Improvement 62% more accidents in low engagement businesses compared to others (Source: Gallup) A major retailer reported 33% fewer days off sick among employees in stores with high levels of engagement (Source: Aon Hewitt) Turnover in low engagement teams at a Fortune 100 company was three times higher compared to high engagement teams (Source: Wellin et al 2005) Encouraging shop floor input at BAE and creating a more engaged workforce has reduced the time taken to build fighter planes by 25%. (Source: BAE)
  17. 17. My voice is designed to answer two key questions for Electrocomponents 1. How engaged are employees? Engagement Behaviours 2. What factors are driving levels of engagement ? Culture & Environment Leadership & Vision People Management Employee Growth & Development Communication SAY STAY STRIVE
  18. 18. Employee Engagement It‟s having employees who are intellectually and emotionally involved in their work. Engaged employees have a strong and loyal desire for their organisation to be successful. One of many similar definitions…
  19. 19. Why Engagement and not Satisfaction? Employee Research Over Time PositiveCorrelation WithBusinessPerformance Lower Higher Commitment Engagement Business Results How much people WANT to contribute to business success How much people like it here How much people WANT and actually DO to improve business results Satisfaction
  20. 20. 5. CASE STUDY: ‘How the implementation of TPS - Toyota Production System- has strengthened the health and safety culture in one of Toyota’s factories’
  21. 21. Peter Carlsson My Background:  Master of Science in Mechanical Engineering, Linköping University  Joined the company in 2000  2002-2008: Production Manager  2009-Present: Vice President Production Powered Trucks Division, BT Products AB
  22. 22. 22 Mjölby factory Sweden Sheet etal omponents elded omponents Spare arts and rucks Special roducts IS I owered rucks
  23. 23. 23 History • 1926 Toyota Industries Corporation (TICO) was founded by Japan’s “master of invention” Sakichi Toyoda. • 1946 BT founded (BT = Construction & Transport Economy Inc) • 1968 BT factory opens in Mjölby, Sweden • 2000 BT joins the Toyota family • 2002 TPS Implementation (TPS = Toyota Production System) • 2010 Safety Dojo • 2012 Certification OHSAS 18001
  24. 24. 24 Printed document is an unregistered copy. Verify the validity in the management system. Name of meeting Manager‟s organisation Staff Safety and Health Committee, Company (twice a year) Plant Safety & Health Committee (twice a year) Dept. S&H Committee Meeting (twice a year) S&H Meeting (twice a year) General S&H Supervisor, Company, President Senior S&H delegate S&H delegate S&H Engineer Senior S&H delegate S&H delegate S&H Engineer Senior S&H delegate S&H Engineer, Occupational S&H services, Union representatives, HR Manager General S&H Supervisor, Plant Plant General Manager S&H Promotion member, Manager of each workplace Dept. S&H Supervisor Manager Safety and Health Promotion Organization and Structure S&H Administration S&H Meeting (once a month) S&H Department, (Plant General Manager) Senior S&H delegate S&H Engineer, Dept. S&H Supervisor Manager Union representatives, HR Manager
  25. 25. 25 Continuous Improvement Respect for People THE TOYOTA WAY - Our Philosophy and values Genchi Genbutsu Kaizen Challenge Respect Teamwork
  26. 26. 26 Aim for ”Zero Accident” Workplaces Challenge • Safe Work • Reliable Work • Skilled Work • Safe Work is “the door” to all work (By Eiji Toyoda, Honorary Advisor, who was the General Safety and Health Supervisor in 1957, constitute Toyota´s basic philosophy) • Let us always pass through this door first • All work must be performed under safe conditions • The resolutions and actions not only of those directly involved in work operations but also of supervisors are of paramount importance
  27. 27. 27 Risk assessments Continuous improvements • Risk assessments • Countermeasures • Supervisor and S&H delegate • Kaizen Board at the Shopfloor Kaizen
  28. 28. 28 Daily management Daily check-ups • Daily regularly meeting • Daily management in the workplace Agenda: • Accidents – incidents • Quality • Delivery • Productivity Genchi Genbutsu
  29. 29. 29 Safety Dojo • One of TMHE‟s safety initiatives is the unique Safety Dojo concept. This is a dedicated area where employees receive mandatory safety training and learn the best practice to prevent risks. • Policy, rules and regulations • Induction training • Every two years • 10 stations Respect
  30. 30. 30 Safety Inspection Teamwork Safety Inspection • Supervisors • Safety Engineer • Senior Safety Delegate • Safety Delegate • Risk assessments • Action plans
  31. 31. 31 Positives • The movie “Safer together” • Staff engagement survey • Improvements of the safety figures Positives / Our Challenge Our Challenge Personal protective equipment • Increased understanding • Importance of using protective equipment • Welding helmet – shoes – jacket - gloves Technical protective equipment • Integrated welding extraction
  32. 32. Conclusions • Some measures can be copied but not easily benchmarked • Results are generally unique to the organisation • Used for indicators – not always as black and white measures • Essential for organisations truly wanting to change