Stack The Deck In Your Favor By Johnny Schrunk


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  • SC: Like the theme. Graphics could pertain to learning, books, school, etc.
  • This, and the next two slides, would give a brief highlight of the days events. Allow attendees to know what information is coming, and in what order. It also gives a few, brief moments, to establish the tempo and flow of the day. We can “gather in our audience.” SC: Title slide for each bulleted item. Should state requirements have its own heading or just be incorporated throughout the show?
  • SC: the rest of the show would deal with the process of starting operations. Could change title.
  • SC: Unsure – how to use it? What it is?
  • SC: Eliminated the form graphics, trying to simplify.
  • We need to come up with a new theme and graphics display, but slide content is good. 2005 was On The Road to Safety & Compliance with roadways, lane markers, signs, etc. used in the graphics. Maybe 2006 could somehow bring out the theme ---- Transportation Safety … Knowledge in Action.
  • SC: maybe include the respective section numbers?
  • SC: from last year
  • SC: Monitoring rates, keeping a register of violations…
  • SC: Types, purposes/goals, awards
  • Stack The Deck In Your Favor By Johnny Schrunk

    1. 1. By Johnny Schrunk ©2009 Stack the Deck in YOUR Favor! Sponsored by: 2009 World Series of Safety
    2. 2. Safety Topics <ul><li>FMCSA Compliance Review </li></ul><ul><li>Safety Fitness Ratings </li></ul><ul><li>Motor Carrier Requirements </li></ul><ul><li>Proactive Approach to Loss Control </li></ul>
    3. 3. FMCSA Compliance Review <ul><li>Factor 1 – Part 387 Financial Responsibility & Part 390 Accident Register </li></ul><ul><li>Factor 2 – Part 382 Drug/Alcohol Testing & Part 391 Driver Qualification </li></ul><ul><li>Factor 3 – Part 395 Hours of Service </li></ul><ul><li>Factor 4 – Part 396 Inspection, Repair & Maintenance </li></ul><ul><li>Factor 5 – Part 397 Hazardous Materials </li></ul><ul><li>Factor 6 – DOT Recordable Accident Rate </li></ul>
    4. 4. Safety Fitness Ratings <ul><li>Satisfactory </li></ul><ul><ul><li>Adequate safety management controls to meet Safety Fitness Standards </li></ul></ul><ul><li>Conditional </li></ul><ul><ul><li>Lacking adequate safety management controls to meet Safety Fitness Standards </li></ul></ul><ul><li>Unsatisfactory </li></ul><ul><ul><li>Lacking adequate safety management controls to meet Safety Fitness Standards, resulting in violations of the regulations </li></ul></ul>
    5. 5. Motor Carrier Requirements <ul><li>MCS-90 & 150/150B Forms </li></ul><ul><li>CMV Markings </li></ul><ul><li>Driver Qualification Files </li></ul><ul><li>HazMat Training/Security Plan </li></ul><ul><li>Accidents </li></ul><ul><li>Vehicle Maintenance & Inspection </li></ul>
    6. 6. Federal Register <ul><li>Published by the Office of the Federal Register and National Archives & Records Administration </li></ul><ul><li>Official daily publication for rules, proposed rules, and notices of Federal agencies and organizations </li></ul><ul><li>Updated daily and published Monday through Friday, except Federal holidays </li></ul><ul><li>GPO Access contains Federal Register volumes from 1994 to the present </li></ul><ul><li>View & submit comments on Federal Register rulemaking documents via </li></ul>
    7. 7. MCS-90 <ul><li>“ Endorsement for Motor Carrier Policies of Insurance for Public Liability Under Sections 29 & 30 of The Motor Carrier Act of 1980” </li></ul><ul><li>For-hire motor carriers in interstate or foreign commerce, who are not self-insured </li></ul><ul><li>Must be kept on file & current </li></ul><ul><li>Must show Schedule of Limits for Public Liability </li></ul>§387.15
    8. 8. MCS-150 <ul><li>Must be filed by motor carriers operating in interstate or foreign commerce </li></ul><ul><li>New carrier must file before operations begin </li></ul><ul><li>Updated biennially based on DOT # </li></ul><ul><ul><li>Last digit is Month </li></ul></ul><ul><ul><li>Next-to-last digit is Year </li></ul></ul><ul><ul><ul><li>Even number –File in even years </li></ul></ul></ul><ul><ul><ul><li>Odd number – File in odd year </li></ul></ul></ul>§390.19
    9. 9. MCS-150B <ul><li>Combined MCS-150 and HM Safety Permit Application </li></ul><ul><li>Must be filed by motor carriers operating in interstate or foreign commerce that carry hazardous materials requiring an HM Safety Permit </li></ul><ul><li>Takes the place of the MCS-150 for carriers required to have an HM Safety Permit. </li></ul>§390.19
    10. 10. CMV Markings <ul><li>CMVs must be marked before put into service </li></ul><ul><li>Marking must display </li></ul><ul><ul><li>US DOT number </li></ul></ul><ul><ul><li>Name of motor carrier (as shown on MCS-150) </li></ul></ul><ul><ul><ul><li>Preceded by “Operated by” if motor carrier is lessee, etc. </li></ul></ul></ul><ul><li>Rule does not require City & State, however, this is not prohibited </li></ul>§390.21
    11. 11. Accident Recordkeeping <ul><li>Definition of Accident : </li></ul><ul><li>An occurrence involving a commercial motor vehicle operating on a highway in interstate or intrastate commerce which results in: </li></ul><ul><ul><li>A fatality; </li></ul></ul><ul><ul><li>Bodily injury to a person who, as a result of the injury, immediately receives medical treatment away from the scene of the accident; or </li></ul></ul><ul><ul><li>One or more motor vehicles incurring disabling damage as a result of the accident, requiring the motor vehicle to be transported away from the scene by a tow truck or other motor vehicle </li></ul></ul>§390.5
    12. 12. Accident Recordkeeping <ul><li>DOT-Required Accident Register </li></ul><ul><ul><li>List each Recordable Accident (regardless of preventability) </li></ul></ul><ul><ul><li>Date of accident </li></ul></ul><ul><ul><li>City or town where the accident occurred </li></ul></ul><ul><ul><li>Driver’s name </li></ul></ul><ul><ul><li>Number of injuries/fatalities </li></ul></ul><ul><ul><li>Any hazardous materials spilled (other than fuel from fuel tanks) </li></ul></ul><ul><ul><li>Any vehicles towed </li></ul></ul>§390.15
    13. 13. Accident Recordkeeping <ul><li>Accident Files </li></ul><ul><ul><li>DOT requires that a carrier maintains copies of all accident reports required by state/governmental entities or insurers (i.e. all correspondence between insurance companies, police reports, etc.) </li></ul></ul><ul><ul><li>Should also include driver/company reports & photographs </li></ul></ul>§390.15
    14. 14. Driver Qualification Files <ul><li>Maintained for each driver for duration of employment & 3 years thereafter </li></ul><ul><li>Must include: </li></ul><ul><ul><li>Application for employment </li></ul></ul><ul><ul><li>Certificate of Road Test or copy of CDL </li></ul></ul><ul><ul><li>Pre-Hire/Annual MVR </li></ul></ul><ul><ul><li>Medical Examiner’s Certificate/Physical Waiver </li></ul></ul><ul><ul><li>Certificate of Violations/Annual MVR review </li></ul></ul><ul><ul><li>Negative Pre-Hire drug test results (Part 382) </li></ul></ul><ul><ul><li>Record of HazMat training & Security training (§172.704) </li></ul></ul>§391.51
    15. 15. Driver Qualification Files <ul><li>May be removed 3 years after date of execution: </li></ul><ul><ul><li>Annual MVR </li></ul></ul><ul><ul><li>Certificate of Violations/Annual MVR review </li></ul></ul><ul><ul><li>Medical examiner’s certificate </li></ul></ul><ul><ul><li>Physical Waiver </li></ul></ul>§391.51
    16. 16. Driver Qualification Files <ul><li>Also recommended: </li></ul><ul><ul><li>Certificate of Compliance </li></ul></ul><ul><ul><li>Long form physical </li></ul></ul><ul><ul><li>Photocopy of CDL </li></ul></ul><ul><ul><li>Driver Qualification & Identification Certificate </li></ul></ul>
    17. 17. Driver Performance History Data <ul><li>Investigation of prospective driver’s Performance History for three (3) years prior to application </li></ul><ul><ul><li>Past Employer Reference Checks </li></ul></ul><ul><ul><li>Drug/Alcohol Inquiries </li></ul></ul><ul><ul><li>Accident History </li></ul></ul><ul><li>Written authorization from applicant to conduct drug/alcohol inquiries </li></ul><ul><li>Maintain in secure location with controlled access </li></ul><ul><li>Retain for duration of employment & 3 years thereafter </li></ul>§391.53
    18. 18. Vehicle Maintenance Files <ul><li>For Vehicles controlled for 30 or more consecutive days, the motor carrier must maintain, or cause to be maintained, the following for each vehicle: </li></ul><ul><ul><li>Identification of the Vehicle </li></ul></ul><ul><ul><ul><li>Company # </li></ul></ul></ul><ul><ul><ul><li>Make </li></ul></ul></ul><ul><ul><ul><li>Serial # </li></ul></ul></ul><ul><ul><ul><li>Year </li></ul></ul></ul><ul><ul><ul><li>Tire size </li></ul></ul></ul><ul><ul><li>Name of person furnishing the vehicle if not owned by the motor carrier </li></ul></ul>§396.3
    19. 19. Vehicle Maintenance Files <ul><ul><li>A record of inspections, repairs and maintenance indicating their date and nature </li></ul></ul><ul><ul><li>A record of tests on pushout windows, emergency doors, and emergency door marking lights on buses </li></ul></ul><ul><ul><li>A means to indicate the nature & due date of the various inspections and maintenance operations to be performed </li></ul></ul><ul><li>Required records must be retained where the vehicle is housed/maintained for 1 year, and for 6 months after the motor vehicle leaves the carrier’s control </li></ul>§396.3
    20. 20. Driver Vehicle Inspection Reports <ul><li>At the completion of each day’s work, the driver must fill out this form. </li></ul><ul><li>Keep for 90 days </li></ul><ul><li>A copy of the last vehicle inspection report must be carried on the power unit </li></ul>§396.11
    21. 21. Annual Vehicle Inspections <ul><li>DOT requires all vehicles (company & owner/operator) to be inspected at least once a year. </li></ul><ul><li>Covers 13 areas and must be signed by the inspector. </li></ul><ul><li>Copy of the inspection or decal carried on the vehicle & kept on file </li></ul><ul><li>22 States with mandatory inspection programs that meet federal requirements </li></ul>§396.17
    22. 22. Brake Inspector Qualifications <ul><li>Required by DOT </li></ul><ul><li>Must meet minimum qualifications to inspect, service or repair brakes on CMVs </li></ul><ul><li>Certificate completed & kept on file </li></ul>§396.25
    23. 23. Inspector Qualifications <ul><li>Required by DOT </li></ul><ul><li>Must meet minimum qualifications to perform federal annual inspections </li></ul><ul><li>Certificate completed & kept on file </li></ul>§396.19
    24. 24. HazMat Training <ul><li>General Awareness/Familiarization Training </li></ul><ul><ul><li>No exception to this requirement </li></ul></ul><ul><ul><li>Drivers, administrative personnel, dock workers, etc. </li></ul></ul><ul><ul><li>Upon hire and every 3 years thereafter </li></ul></ul><ul><ul><li>Maintain all documentation of dates completed, materials used, trainer’s name, etc. </li></ul></ul><ul><ul><li>Provide drivers copies of HM Regs & NAERG </li></ul></ul>§172.704
    25. 25. HazMat Training <ul><li>Function-Specific Training </li></ul><ul><ul><li>Specialized training for employees responsible for the movement of any hazardous material </li></ul></ul><ul><ul><li>Not required if driver has valid HM Endorsement </li></ul></ul>§177.816
    26. 26. Security Plan for HazMat <ul><li>Personnel Security </li></ul><ul><ul><li>Confirm information provided by job applicants for positions that access & handle HM </li></ul></ul><ul><ul><li>Confirmation system must be consistent with applicable Federal and State laws </li></ul></ul><ul><li>Unauthorized Access </li></ul><ul><ul><li>Address risk of unauthorized persons gaining access to HM </li></ul></ul><ul><li>En-route Security </li></ul><ul><ul><li>Address security risks of HM shipments en-route from origin to destination </li></ul></ul>§172.802
    27. 27. Proactive Approach to Loss Control <ul><li>Driver Selection/Retention </li></ul><ul><li>Driver Training Programs </li></ul><ul><li>Driver Supervision </li></ul><ul><li>Accident Prevention Programs </li></ul><ul><li>Driver/Vehicle OOS Rates </li></ul><ul><li>Recognition/Incentives </li></ul>
    28. 28. Driver Selection Standards <ul><li>Not DOT required, but good business practice </li></ul><ul><ul><li>Written format including minimum age/experience & maximum number of allowable tickets, accidents or violations </li></ul></ul><ul><ul><li>Adhered to without exception </li></ul></ul><ul><li>At least as stringent as DOT </li></ul><ul><ul><li>21 years of age for interstate </li></ul></ul><ul><ul><li>Training or experience in the equipment driven </li></ul></ul><ul><ul><li>Not disqualified under Parts 391 or 383 </li></ul></ul><ul><ul><li>Physically qualified under Part 391 </li></ul></ul>
    29. 29. <ul><li>How to Improve </li></ul><ul><ul><li>Employee involvement </li></ul></ul><ul><ul><li>Initial/Ongoing training </li></ul></ul><ul><ul><li>Recognition </li></ul></ul><ul><ul><li>Job description/Purpose – job is necessary </li></ul></ul><ul><ul><li>Other suggestions? </li></ul></ul><ul><li>Benefits </li></ul><ul><ul><li>Reduced losses/costs </li></ul></ul><ul><ul><li>Better customer service </li></ul></ul>Driver Retention
    30. 30. Driver Training Programs <ul><li>Orientation Program </li></ul><ul><ul><li>Pay/Benefits </li></ul></ul><ul><ul><li>Company Mission/Familiarization </li></ul></ul><ul><ul><li>Policies/Procedures </li></ul></ul><ul><ul><li>Special Equipment Operation </li></ul></ul><ul><ul><li>Regulations </li></ul></ul><ul><ul><li>Customer Facilities/Expectations </li></ul></ul><ul><ul><li>Required Entry Level Training [Part 380(e)] </li></ul></ul><ul><ul><ul><li>Driver Qualifications </li></ul></ul></ul><ul><ul><ul><li>Hours of Service </li></ul></ul></ul><ul><ul><ul><li>Driver Wellness </li></ul></ul></ul><ul><ul><ul><li>Whistleblower Protection </li></ul></ul></ul>
    31. 31. Driver Training Programs <ul><li>Ongoing/Refresher Training </li></ul><ul><ul><li>Formal Training </li></ul></ul><ul><ul><ul><li>New customers/equipment </li></ul></ul></ul><ul><ul><ul><li>Preventing common types of accidents </li></ul></ul></ul><ul><ul><ul><li>Defensive Driving </li></ul></ul></ul><ul><ul><ul><li>Hazardous Materials </li></ul></ul></ul><ul><ul><ul><li>Security </li></ul></ul></ul><ul><ul><li>Informal Training/Safety Meetings </li></ul></ul><ul><ul><ul><li>Refresher DDC </li></ul></ul></ul><ul><ul><ul><li>General accident prevention </li></ul></ul></ul><ul><ul><ul><li>Policy/procedure changes </li></ul></ul></ul><ul><ul><ul><li>Customer/equipment changes </li></ul></ul></ul>
    32. 32. Driver Training Programs <ul><li>Student Training </li></ul><ul><ul><li>PTDI Certified Schools (Suggested) </li></ul></ul><ul><ul><li>Student Continuing Education </li></ul></ul><ul><ul><ul><li>Contact PTDI for “Driver-Friendly” program materials </li></ul></ul></ul><ul><ul><li>Driver Finisher Program </li></ul></ul><ul><ul><li>Trainer Qualification/Training </li></ul></ul><ul><ul><li>Written outline </li></ul></ul><ul><ul><ul><li>Specific content </li></ul></ul></ul><ul><ul><ul><li>Length of OJT </li></ul></ul></ul><ul><ul><li>Written instructor/student manuals </li></ul></ul><ul><ul><li>Written student evaluations </li></ul></ul>
    33. 33. Driver Supervision <ul><li>Management involvement & support </li></ul><ul><ul><li>Supervisor Training/Accountability </li></ul></ul><ul><ul><li>Loss Investigation </li></ul></ul><ul><ul><li>Road patrols/check rides </li></ul></ul><ul><li>Written safety policies/procedures </li></ul><ul><li>Disciplinary policies </li></ul><ul><li>Designated check points/call-in times </li></ul><ul><li>Driver Performance Reviews </li></ul><ul><li>Driver Safety Records </li></ul>
    34. 34. <ul><li>Separate accident register from DOT-required </li></ul><ul><ul><li>Lists ALL accidents/incidents </li></ul></ul><ul><ul><li>Useful in tracking trends/frequencies </li></ul></ul><ul><li>Investigation/Analysis </li></ul><ul><li>Accident Review Committee </li></ul><ul><li>Accident scene training/procedures </li></ul><ul><li>Reporting </li></ul>Accident Prevention Program
    35. 35. Driver/Vehicle OOS Rates <ul><li>Ways to monitor </li></ul><ul><ul><li>Require immediate notification from driver </li></ul></ul><ul><ul><li>Internet (SAFER/SafeStat) </li></ul></ul><ul><ul><li>Analyze (ProVu) </li></ul></ul><ul><li>How to reduce </li></ul><ul><ul><li>Additional training </li></ul></ul><ul><ul><li>Incentives </li></ul></ul><ul><ul><li>Discuss analysis results </li></ul></ul><ul><ul><li>Corrective action (vehicle maintenance) </li></ul></ul>
    36. 36. Recognition/Incentives <ul><li>Recognition </li></ul><ul><ul><li>Non-monetary </li></ul></ul><ul><ul><li>Produces excellent results </li></ul></ul><ul><ul><li>Enhanced in group presentations (i.e. meetings, banquets, etc.) </li></ul></ul><ul><ul><li>Industry Standard Safety Awards (ATA) </li></ul></ul><ul><ul><li>Incremental additions, i.e. </li></ul></ul><ul><ul><ul><li>5 years of employment – Plaque </li></ul></ul></ul><ul><ul><ul><li>10 years – Jewelry, etc. </li></ul></ul></ul><ul><ul><ul><li>Increase every 5 years </li></ul></ul></ul><ul><li>Incentives </li></ul><ul><ul><li>For specific purposes </li></ul></ul><ul><ul><ul><li>Clean Roadside Inspection </li></ul></ul></ul><ul><ul><ul><li>No accidents or violations </li></ul></ul></ul><ul><ul><ul><li>Better fuel economy </li></ul></ul></ul>
    37. 37. Basis of Insurability <ul><li>Underwriting = Process of reviewing your operation for insurance purposes: </li></ul><ul><ul><li>Insurance application </li></ul></ul><ul><ul><li>Nature of operation </li></ul></ul><ul><ul><li>Financial records & reports </li></ul></ul><ul><ul><li>Loss history </li></ul></ul><ul><ul><li>Location </li></ul></ul><ul><ul><li>Area of travel </li></ul></ul><ul><ul><li>Commodities </li></ul></ul><ul><ul><li>Type of equipment </li></ul></ul><ul><ul><li>Age of business </li></ul></ul><ul><ul><li>Driver qualifications & records </li></ul></ul>
    38. 38. How to Improve Insurability <ul><li>Risk Assessment </li></ul><ul><ul><li>Assess your operation </li></ul></ul><ul><ul><li>Reduce unnecessary risks </li></ul></ul><ul><li>Analyze all losses </li></ul><ul><ul><li>Develop & document programs to reduce losses </li></ul></ul><ul><li>Following good business practices </li></ul><ul><ul><li>Maintain proper documentation </li></ul></ul><ul><ul><li>Good claims handling, reporting, procedures & paper trails </li></ul></ul><ul><ul><li>Written policies/procedures & adhere to them </li></ul></ul><ul><li>Hire qualified drivers with good records </li></ul><ul><li>Train drivers & other employees </li></ul>
    39. 39. RISK CONTROL <ul><li>What is Risk? </li></ul><ul><li>The measure of the probability & severity of a loss event taking place. </li></ul>Risk = Probability x Severity
    40. 40. Probability <ul><li>Likelihood of event taking place </li></ul><ul><li>Can be classified as: </li></ul><ul><ul><li>Frequent </li></ul></ul><ul><ul><li>Probable </li></ul></ul><ul><ul><li>Occasional </li></ul></ul><ul><ul><li>Remote </li></ul></ul><ul><ul><li>Improbable </li></ul></ul>
    41. 41. Severity <ul><li>Magnitude of the loss in a given period of time </li></ul><ul><li>Can be classified as: </li></ul><ul><ul><li>Catastrophic </li></ul></ul><ul><ul><li>Critical </li></ul></ul><ul><ul><li>Marginal </li></ul></ul><ul><ul><li>Negligible </li></ul></ul>
    42. 42. Reducing Probability & Severity <ul><li>Factors in Truck Crashes </li></ul><ul><ul><li>Equipment condition </li></ul></ul><ul><ul><li>Driver selection </li></ul></ul><ul><ul><li>Training </li></ul></ul><ul><ul><li>Supervision </li></ul></ul>
    43. 43. Thank You! Do YOU have a Winning Hand?