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ANNUAL STEWARDSHIP REPORT
2002
IDS – LONG BEACH
Safety, Health, and Environmental Affairs
This booklet was designed and produced by Safety, Health, and
Environmental Affairs. Questions or comments, please call (562) 593-8233.
Published 2003 by The Boeing Company,
2401 East Wardlow Road, Long Beach,
California 90807
Boeing Proprietary, Confidential and/or Trade Secret
Copyright © 2003, The Boeing Company.
ANNUAL STEWARDSHIP REPORT
2002
IDS – LONG BEACH
Safety, Health, and Environmental Affairs
SHEA ANNUAL STEWARDSHIP REPORT
SHEA Vision 3
SHEA Leadership Team 4
The Year In Review – Making Partnerships Work 6
Executive Summary, Charter, Mission,
Vision, and Role 9
SECTION 1
Organizational Leadership, Public Responsibility,
and Citizenship 10
SECTION 2
Strategy Development and Deployment 12
SECTION 3
Customer and Market Focus
ENVIRONMENTAL TEAM 13
SAFETY AND INDUSTRIAL HYGIENE 14
MEDICAL 16
SECTION 4
Information and Analysis 17
SECTION 5
People and the Human Resource 18
SECTION 6
Process Management 27
SECTION 7
Results for 2002 28
Contents
John Sterritt
Senior Manager, SHEA
Al Parker
Director of Quality
Our IDS Long Beach SHEA is
dedicated to providing a safe
and healthful workplace.
We do so through the collective
experience of our people,
processes, and systems.
Boeing IDS employees are
engaged to make this vision a
reality. In 2002, we reduced
recordable injuries by 15%.
Although we faced many
challenges, the workforce
continued to perform safer
and more efficiently.
SHEA ANNUAL STEWARDSHIP REPORT 3
Cliff Tanigawa ensured SHEA
Assessment Compliance, PBM,
MSA, JSM, and SHEA Balanced
Scorecards met all requirements.
Noel Chan headed the team of
dedicated safety professionals. His
group conducted assessments of
shopfloor processes, and consulted
with management to provide a safe
and healthful workplace.
Noel’s team provided safety
engineering services and industrial
hygiene support, such as noise
sampling, monitoring and safety
design support.
Nancy Sheps joined the SHEA team
from Boeing Satellite Systems.
Nancy led the Environmental,
Workers’ Compensation, and
Medical teams while integrating
SHEA processes into the daily
business of the site.
4 SHEA ANNUAL STEWARDSHIP REPORT
SHEA Leadership Team
Nancy Sheps, P.E.
Manager, Environmental, Workers’ Compensation,
Medical, and SHEA Processes
Cliff Tanigawa, C.I.H., C.S.P.
Staff to Senior Manager
Noel Chan
Manager, Safety and Industrial Hygiene
John Sterritt, C.S.P.
Senior Manager, SHEA
Ron Fornator
Environmental Team Lead, Water Specialist
Renita Howard
Workers’ Compensation
Ray Paskauskas, C.I.H.
Industrial Hygiene
Lisa Arevalo, R.N.
Medical
Lisa Arevalo, the Medical Lead,
provided support, helping the site’s
employees stay healthy and safe.
Ron Fornator served as our
Environmental Team Lead. Our
Environmental Team handles
several different programs including
Hazardous Waste Management, Air
Quality, Waste Water and Site
Permitting.
Ray Paskauskas, our Industrial
Hygiene Team Lead, handled
several different programs
including Confined Spaces,
Respiratory Protection, the
Hearing Conservation Program,
Hazard Communication, and
much of our sampling services.
Renita Howard served as our
Workers’ Compensation Team Lead.
Our workers’ compensation team
helped the site reduce incurred
costs.
SHEA ANNUAL STEWARDSHIP REPORT 5
Team Leads
The Year In Review
MAKING PARTNERSHIPS WORK
6 SHEA ANNUAL STEWARDSHIP REPORT
Together, we celebrated as Ship 100 moved through
the factory. The C-17 program captured California
Gold during the California Association for Performance
Excellence (CAPE) Award run, and the Military
Aerospace Support (MAS) group won silver with 5
teams capturing Quality awards in different CAPE
competitions. SHEA supported the applications in all
seven critical categories with key process data,
metrics, and site visit interviews.
Site performance during both the SHEA Effectiveness
Review in March and the comprehensive SHEA
Assessment in July, moved the site closer to
recognized corporate leadership in Safety, Health, and
Environmental Affairs. Boeing assessors acknowledged
the site for several Best Practices including the
Executive Safety Committee, SHEA integration into
downsizing plans, Hazard Communication, and
internal assessment self-governance.
2002 turned into one victory
celebration after another for the
site. In addition, it was a year
of enhanced partnering for the
SHEA organization. In 2002 we
saw enhanced customer
relationships with:
• Production IPT/SHEA Assessment
Preparation
• Safety Action Team/Employee
Involvement Initiatives
• UAW Safety Committee/SHEA Joint
Projects
• C-13 Team/SHEA Start-up Project
• Training and Certification/ACLC/
IT/SHEA Individual Training Plan
Development
• SHEA supported Industry Week’s
2002 Best Plants Award win.
Safety and Environmental
programs was one of 12
categories the judges evaluated
to gauge overall site performance.
• Achieved 15% reduction in
recordable injuries.
• Working with SSG, reduced site
incurred workers’ compensation
cost by $3.2M (33% reduction)
from 2001 through 2002.
• Reduced reportable workers’
compensation claims to
insurance carrier from 1600 in
2001 to 970 in 2002 (40%
reduction).
• Closed 100% of the open
findings from the 2001 Corporate
SHEA Effectiveness Review.
• Reduced Corporate SHEA
Assessment process and program
findings by 78% (with 0 major
findings) from 2000 to 2002
assessment results.
• Designed and deployed a new
aircraft confined space entry
program, resulting in a 90%
reduction in permits generated
(2000 in ‘01 to 200 in ‘02), an
estimated $2.5M in annual cost
savings and dramatically reduced
compliance liability.
• Supported system design of the
new Individual Training Plan
(ITP) database system.
• Published the SHEA Training
Matrix.
• Published TA-SAF-057, SHEA
Corrective Actions and modified
other SAF procedures.
• Worked with DCMA and
Supplier Management to move
ordnance to Black Angel Mine.
• Replaced AIG and integrated
Kemper Insurance as the new
Workers’ Compensation
insurance carrier.
• Deployed the Manager’s Report
of Injury and Illness (MD 1715)
reporting process to the web for
management convenience.
• Enhanced Grade D breathing air
and ventilation system for
aircraft confined space entry
process.
• Published and released two new
training booklets (Taglines and
Powered Industrial Trucks).
• Achieved a score of 3.5 (out of
5.0) and received a company-
wide Best Practice for SHEA in
the Lean Manufacturing
Assessment (LMA).
• Supported design, construction
and start-up of C-13 fabrication
and quick response facility.
• Received zero environmental
citations (10 years).
• Achieved 100% NESHAPS
compliance.
• Placed Material Safety
Datasheets (MSDS) on-line
(Shopfloor 2000-Solumina
system), making them accessible
to anyone in the Production
environment.
• Deployed job specific hazard
communication tools onto the
web, thus improving personal
protective equipment technology
for Production employees.
• Supported efforts to achieve
California Association for
Performance Excellence (CAPE)
Gold for C-17, and Silver for the
MAS group.
• Completed restructuring of the
SHEA management team and site
Workers’ Compensation team.
• Provided more than 12,000
SHEA-related training hours.
2002 Achievements
SHEA ANNUAL STEWARDSHIP REPORT 7
8 SHEA ANNUAL STEWARDSHIP REPORT
Organizational Profile
Safety, Health, and Environmental
Affairs (SHEA) acts as the primary
focal point for contractual,
governmental and company safety,
environmental, regulatory, and
compliance requirements. The chart
on page 12 shows the relationships
between those agencies and our
company supporting documents.
SHEA’s main products and services
include internal consulting, medical
operations management, training,
audits, various reports, and key site
data that are used by management
to provide a safe and healthful
workplace.
We have both internal and external
customers. Our internal customer
segment consists of our various
Integrated Product Teams, site
tenants, USAF base MAS personnel
and unionized production workforce.
Our external customer segment is
the Air Force Safety Representative.
Our products and services are
delivered daily to our customer base
with the help of our dedicated
safety representatives.
Organizational Description
SHEA operates in a team-based
culture where SHEA requirements
and practices are integrated into
our customers’ business. Our
customers seek high-quality,
dependable, and timely safety,
environmental, and workers’
compensation data that they use to
maintain a safe workplace.
SHEA is also part of a larger supply
chain where governmental,
contractual, and company
requirements are integrated into the
site’s business. We process those
requirements into workable
products and services and in turn,
help keep the site compliant to the
requirements, while reducing costs
and improving quality.
Much of our business is based on a
sound and systematic
communication model where we
constantly monitor the environment
and inform our customers of the
latest SHEA developments.
Key Strategic Challenges
Our key strategic challenge is to
prevent industrial injuries and
illnesses in an environment where
the workforce is “maturing” and
downsizing, and we are increasing
our production rate year by year.
Executive Summary, Charter,
Mission, Vision, and Role
SHEA supports the Boeing IDS
site, including Long Beach
military aerospace support
operations. The bases include
McChord, Charleston, Brize
Norton in England, and Altus.
Additionally, we support SHEA
management at Macon, High
Desert (HDAIT), and Palmdale
operations.
SHEA Vision
Our SHEA Vision is tied to the
Boeing 2016 Vision where we value
our employees and their families in
achieving a safe community.
SHEA Mission
Our SHEA mission is to create an
environment where employees
contribute to a safe, sound,
systematic, process-driven, safety,
health, and environmental program.
SHEA Charter
Our SHEA charter is to ensure a
safe and healthful workplace by
providing training and awareness
programs, preventive audits and
feedback, organizational meetings,
Industrial Hygiene air and noise
sampling, and providing engineering
solutions where possible.
Executive Safety Committee (ESC)
The Executive Safety Committee
(ESC) shapes SHEA direction and
improvement. Key SHEA projects
are tracked by the Committee, and
corrective actions evaluated for
effectiveness and statused by
process owners. In 2002, the ESC:
• Led the site through the SHEA
assessment, contributing to a
78% reduction in findings with
zero major findings
• Supported design and
implementation of a new
Confined Spaces process using
alternate procedures
• Supported design and
implementation of the new
Individual Training Plan database
• Directed new injury review process
SHEA Role
Our SHEA Role is to support the
operation in improving quality,
safety and environmental
compliance.
SHEA ANNUAL STEWARDSHIP REPORT 9
Organizational Leadership, Public
Responsibility, and Citizenship
SECTION 1
10 SHEA ANNUAL STEWARDSHIP REPORT
Executive leadership sets the
tone and direction of a safe
and healthy workplace.
Dave Bowman
Vice President, C-17 Program
Steve Jugan
Vice President, Production
Al Parker
Director, Quality
Howard Chambers
Vice President/General Manager,
Airlift & Tanker Programs
Leading the charge is Howard
Chambers. His skillful leadership
guided the site through the SHEA
assessment in July resulting in
marked improvement from our
previous audit in 2000. In addition,
Howard’s ongoing participation and
support of our partnership with the
Safety Awareness Teams have
enhanced employee involvement.
Dave Bowman joined the Executive
Safety Committee this year. Dave’s
leadership has resulted in many
new duties as VP of Production has
helped SHEA processes remain at
the forefront of management’s
attention.
Al Parker is the new leader of the
Quality organization. SHEA falls
under his direct guidance. We
welcome his creative and steady
support as we move into the new
year.
improvements to the process this
year, including a robust tracking
system, more open and beneficial
discussions on safety and well-
being, and employee involvement.
Steve Jugan led SHEA’s
development as the former head of
Quality. Steve held weekly reviews
on key SHEA processes and
procedures, guiding, encouraging,
and helping the site achieve a safe
and healthful work environment.
Steve’s continued support in his
SHEA ANNUAL STEWARDSHIP REPORT 11
One of the most critical and visible
areas of our operation is
environmental compliance.
Improving environmental quality is
of the utmost importance to the
site and promotes Vision 2016, as
well as our local values and vision.
We use quality tools such as Process
Based Management (PBM) to help
us manage our environmental
process and, in so doing, find
opportunities for improvement.
The C-13 start-up was a
demonstration of the importance of
our environmental affairs program.
in a row. 2002 was the third year
in a row that we did not have to
report under the Toxic Release
Inventory System. Our emissions
were under the threshold. The
chart shown below illustrates how
we have reduced EPA 17 (EPA’s
list of 17 restricted chemicals)
chemical usage while increasing
aircraft production rate.
Substituting non-hazardous
materials during aircraft assembly
whenever possible helps decrease
risk to employees and to the
environment.
Our environmental team was
included in all start-up discussions
and fundamentally changed the way
we work. The team supported the
effort by executing all environmental
permitting requirements for air,
water, recycling, and hazardous
waste. This allowed the site to open
on time and on budget.
In 2002, our Environmental team
helped the site achieve a 43%
reduction in EPA restricted
chemicals. We reduced EPA
restricted chemical usage per
aircraft delivered for the 13th year
The Environment and Public
Citizenship
18
16
14
12
10
8
6
4
2
0
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
1995 1996 1997 1998 1999 2000 2001 2002
0
PlanesDeliveredperYear
Pounds
Number of EPA 17/Aircraft Number of ODC/Aircraft Planes Delivered
EPA 17 and ODCs per Aircraft
Strategy Development and
Deployment
SECTION 2
12 SHEA ANNUAL STEWARDSHIP REPORT
SHEA Requirements and Key
Process Map
A&M Policy/Procedure
TA-227
A&M
Safety and Health Strategy Plan
SHEA_AR02-01
SHEA Accountability
TA-222
SHEA Programs
TA-006
8.01 8.02 8.03 8.04 8.05
PBM PROCESSES
ACTION J F M A M J J A S O N D
SHEA Processes
TA-062
Training Certifications
TA-024
1
2
3
ACTION J F M A M J J A S O N D
1
2
3
Federal Regulations
29 CFR
State of California Regulations
8 CCR 3203 and More
Boeing Requirements
Policy 4
PRO 1021
PRO 910 (and More)
3203 Requires:
Responsible Individual
Hazard Recognition
Communication
Inspections and Audits
Discipline and Recognition
Training
Recordkeeping
Correction of Safety and
Health Deficiencies
A&M
SoCal Safety Improvement Plans
SHEA processes are integrated
into the site’s strategic plan.
2002 Results
• Reduced Recordable Injuries by
15%
• Reduced Incurred Workers’
Compensation Costs by 33%
• Lost Workday Case Rate remained
flat through 2002
• Received No Major Findings in
the Boeing SHEA Corporate
Assessment
• Improved Relationship with Both
Production and Field-Based
Customers
Key 2002 SHEA Strategies & Goals
• Reduce Injuries
• Reduce Lost Workday Cases
• Reduce Workers’ Compensation
Costs
• Enhance Customer Satisfaction
• Achieve No Major Findings on
the Boeing SHEA Corporate
Assessment
SHEA submits plans and goals,
which then are integrated into our IPT
structure. This ensures that key
SHEA requirements are engineered
into the business.
All SHEA requirements are driven by
federal, state, and local regulations.
These translate into Boeing corporate
requirements that, in turn, drive our
own procedures and processes.
The figure above shows the main
safety, health, and environmental
drivers.
Regulatory, Contractual Drivers & Corporate Policies and Procedures
Customer and Market Focus
ENVIRONMENTAL TEAM
Dave Atkins
Air Specialist
Dave Hinds
Recycling, Hazardous Material
Ron Fornator
Environmental Team Lead, Water Specialist
The SHEA team leads provide an
invaluable support function for our
management team. Team Leads
support Safety, Environmental,
Workers’ Compensation, and
Medical.
The Environmental function
supports ground and air pollution
prevention practices, stormwater,
hazardous waste, recycling, and a
host of other support areas.
We successfully supported
development of the C-13 facility by
acquiring air and water permits and
We recycled over 236,000 pounds
of hazardous materials, with a
resulting cost savings of $33,000.
These materials would have been
disposed of as a hazardous waste if
not recycled. The recycle percentage
is currently 37% of total hazardous
materials disposition.
The site also maintained 100%
compliance with Aerospace
National Emission Standards for
Hazardous Air Pollutants for each
operational day in 2002.
setting up hazardous waste collection
and disposal processes. In addition,
we submitted all required water
quality and emergency response
plans to the city.
The site had another year with no
environmental fines and no
violations from any environmental
agency. There were no findings
above a Local Attention Item as a
result of the Company SHEA Audit.
This resulted in a 100% reduction
in audit findings requiring a
correction action plan.
SECTION 3
SHEA ANNUAL STEWARDSHIP REPORT 13
Customer and Market Focus
SAFETY AND INDUSTRIAL HYGIENE
SECTION 3
14 SHEA ANNUAL STEWARDSHIP REPORT
Ron Irby
Center Fuselage and MAS Support
Skip Clark
Wing and SHEA Data Support
Michelle Alcaraz
Production Control, C-13 Support and
SHEA Communications
Sam Bush
2nd/3rd Shift Support
Doc Momtaz
Frontline Support and SHEA Ergonomic Focal
Dedicated support to our
direct customers is what SHEA
is all about. Shown below are
key SHEA customer support
members.
Customer & Market Focus
SHEA serves both internal and
external customers. Our external
customer is the United States Air
Force. Our primary internal
customer is the employee IPT base,
including off-site support.
We serve our customer base in
many different ways including
process and procedure development,
training, consulting, and electronic
databases.
Employee Safety Concerns
SHEA uses the Employee Safety
Report (ESR) process to handle
employee safety concerns.
Employees and managers filed 62
ESR’s in 2002. SHEA and the UAW
Safety Committee, in partnership,
closed all but seven of them, an
89% success rate.
The UAW Safety Committee (Kenny
Elmore, Tony Connelly, and Ed
Lopez) have worked diligently with
the SHEA Team to close open ESR’s
during 2002. The site had a 12%
reduction in open ESR’s at years
end from 2001 data.
SHEA ANNUAL STEWARDSHIP REPORT 15
Rob Stern
Ramp, Paint and Ground Safety Officer
Jessie Elizalda
Medical Support
Wayne Larson
Test and Evaluation Support
Kim Foster
Fuselage Support, Office Ergonomic Focal
and I.H. Support
Key Customer Listening and
Learning Methods
SHEA employs a number of key
listening posts throughout the
organization. Included are employee
surveys, the monthly Safety
Awareness Team meetings, Executive
Safety Committee, and numerous
other meetings, such as the
team-based clusters, IPT director’s
SAT meetings, and the SAT/EI
meetings.
In every case, employees have an
opportunity to voice concerns.
Other listening and learning
opportunities include the Facilities
Trouble Ticket Website, the Wing
Team Support Center Safety webpage,
monthly departmental safety
meetings, and our own SHEA Website.
Customer and Market Focus
MEDICAL
SECTION 3
16 SHEA ANNUAL STEWARDSHIP REPORT
Medical Department Performance
Our Medical team sees hundreds of
employees each month.
Services include medical treatment
for injuries and illnesses, medical
exams, and consultations.
Last year’s throughput averaged
more than 500 employees per
month.
The Medical Operation Team
received outstanding employee
survey scores during the 2002
Boeing Clinical Operations
Customer Survey.
Jan Feb Mar Apr May June
Month
July Aug Sept Oct Nov Dec
500
400
300
200
800
700
900
600
100
0
NumberofCases
725 714 738
820
696
742
643 627 641 652
583
434
C-17 Medical Throughput for 2002
Min Noche
Registered Nurse
Lisa Arevalo
Medical Lead, Registered Nurse
Jessie Elizalda
Medical Support
The Medical Operation Team
received zero assessment deficiency
findings during the 2002 corporate
SHEA assessment.
• Staff Was Professional: 99%
Excellent/Good
• Staff Was Knowledgeable: 98%
Excellent/Good
• Rate the Facility: 98.3%
Excellent/Good
• Rate Overall Experience: 98.4%
Excellent/Good
• Was Wait Time Appropriate:
96.7% Said Yes
Information and Analysis
SECTION 4
SHEA launched several new
tools helping the site to
provide better and more
convenient training to the
work teams.
SHEA ANNUAL STEWARDSHIP REPORT 17
Illustrated below is the specialized
Job Specific Hazard Communication
sheets.
Working alongside our Production
counterparts, SHEA professionals
assessed hazards throughout the
production facility and generated
specialized department-specific
tools.
These were communicated to each
workteam between March and July,
ensuring that employees were made
aware of hazards pertaining to them
in their area. The corporate SHEA
assessors identified this as a Best
Practice for employee accessibility.
These methods were generated as a
result of a partnership between the
Production and SHEA teams.
A corrective action team from the
Wing IPT developed a website
providing a unique and graphic
approach helping management
protect the workforce.
Now, managers can find their
department’s specific hazards, key
procedures, training data, and forms
needed to complete their safety tasks
on-line.
Page 2 of the MD-1858 provides a hazard
specific breakdown of work practices, personal
protective equipment, and chemicals in each
Production department.
The Safety Website, supported by our
partners in the Wing Team Support
Center, provides tools to help managers
protect their employees.
People and the Human Resource
SECTION 5
SHEA plays a critical role in
our customers’ business. We
have co-located several of our
staff members into the Team
Support Centers.
This Integrated Approach Supports
the IPT Business Concept
Ramp
and
Paint
Frontline
IPT
Center
IPT
Fuselage
IPT
Wing
IPT
2nd and 3rd
Shifts
Sam Bush Skip Clark Kim Foster Ron Irby Doc Momtaz Rob Stern Michelle Alcaraz
Production
Control and
C13
Recognitions
As a key support function on the
site, SHEA works to integrate all of
its processes into its customer’s
business. For example SHEA
provides a dedicated professional to
each Integrated Process Team (IPT).
SHEA safety professionals are
assigned to key Production units on
a dotted-line basis and are
colocated in the Fuselage and Wing
Team Support Centers or the
customer’s management hubs, such
as The Frontline or Ramp
organizations.
Don Pitcher Receives a SHEA
Appreciation Award
Recognitions play a key role in
building a motivated and effective
workforce. Pictured are Don Pitcher,
Director of the Wing IPT and Robb
Schwartz. Don played a vital part in
helping SHEA and the site pass
both the SHEA Effectiveness
Review in March and the SHEA site
assessment in July.
18 SHEA ANNUAL STEWARDSHIP REPORT
SHEA ANNUAL STEWARDSHIP REPORT 19
Tim Miller, Wing IPT TSC Director,
and co-chaired by Ray Paskauskas
of SHEA, designed, developed, and
deployed an alternate method for
confined space entry.
The new procedures were developed
to allow employees performing
confined spaces work to execute
their duties without the need of
respirators.
This has proven popular with wing
tank entrants, as well as with
employees entering the bilge.
Al Parker (Quality) and John
Sterritt, SHEA, present Bob
Souza, Fuselage Director, with
his safety recognition.
Wing Employees Nancy Navarrette, Jay Galloway,
and Rafael Castillo are recognized for SHEA
Effectivenes Review Support by John Sterritt,
SHEA Senior Manager.
Confined Spaces
Improvement Team.
Bob Souza, Fuselage Director, was
recognized this year for innovative
approaches to safety improvement.
He is shown receiving his award
from Al Parker, Director of Quality
and John Sterritt, Senior Manager,
SHEA.
Wing IPT employees Nancy
Navarrette, Rafael Castillo, and Jay
Galloway were recognized for a job
well done by John Sterritt of SHEA
(right) at the March 28 Executive
Safety Committee meeting. The
award was presented by the SHEA
organization in recognition of the
trio’s efforts at helping the site
close out several safety actions from
the 2000-2001 SHEA Assessment.
The website is shown in Section 4.
Nancy and Rafael have also
developed a site-wide website,
which incorporates personal
protective equipment requirements
for every Production department.
SHEA supports a team-oriented
culture. The Confined Spaces
Improvement Team, chaired by
Not shown, but also receiving
SHEA recognitions were Art Balazs
and Joe Maltese for Executive
Management Support
20 SHEA ANNUAL STEWARDSHIP REPORT
Team Safety Award Winners
from the Wing Tooling Team.
SHEA Instructor Robb Schwartz
with the December 2002 newly
transferred group.
Team Safety Award Winners –
Wing Tooling Team
SHEA Training – Commercial
Transferred Employees
The Team Safety Award is given
annually to the team exhibiting both
an excellent safety record and
consistent safety process
management.
Included here are regularly
scheduled safety meetings, self
inspections, training, and, of
course, an excellent safety record.
This year’s award was captured by
the Wing Tooling Team, headed by
Cliff Carlin.
The PTP AIW team met for several
days to discuss how Safety,
Planning, and Production processes
often interact with one another. The
team presented their findings at the
Executive Safety Committee in
October.
PTP AIW Team
Safety, health, and environmental
training is a strategic prevention tool.
SHEA supports the transfer of
employees by planning and executing
a robust training package that
outlined key training deliverables for
every transferred employee.
The course combines lecture, guest
speakers, mini-course booklets, and
accompanying quizzes to enhance
the learning experience. Transferred
employees are brought up to speed
on SHEA practices, the role of the
UAW, key SHEA contacts, problem
solving, Hazard Communication,
Injury and Illness Prevention Program,
and other SHEA-related topics.
The PTP AIW Team identified
issues and presented to the
Executive Safety Committee.
SHEA ANNUAL STEWARDSHIP REPORT 21
In addition to on-going support from
Training and Certifications (T&C)
and the Advanced Craftsmanship
Learning Center (ACLC), SHEA
provides process and compliance-
related topics.
SHEA continued its alternative
training approaches in 2002. Once
again, SHEA met the challenge of a
mobile and dynamic workforce by
providing more than 12,000 hours
of formal training and certifications,
and by so doing raised compliance
for our key Production customer to
levels above 95%. Included above
are titles from the SHEA Training
Library.
Number of Employees
Affected (Target Population)
Training Hours
Provided 2002Audience
Training Booklet or
Course Title Requirements
Hazard Communication
Course (052703)
Production and Related
New and Related Transfers
Production and Related
Units-Course is Taught at
New Employee Orientation
2900 1400
Injury and Illness Prevention
051313 (One Time)
Production and Related
Units
2900 990
Fall Protection
063708 (One Time)
Production and Related
Units
1500 820
Lead Awareness
(One Time)
Production and Related
Units
300 0
Taglines
064814 (One Time)
Production and Related
Units
500 300
Transfer Safety Orientation
055760 (One Time)
Production and Related
New and Related
Transfers
500 500
Job Specific Workplace Safety
Orientation + Hazard
Communication II (Annually)
044512
Production and Related
Units
2900 1140
Ergonomics Production and Offices 120 120
2002 SHEA Training Hours Total 11,538
Hearing Conservation
(Annually as Identified)
Production and Related
Units
2700 2200
Lockout Tagout
060216 (One Time)
Production and Related
Units
2900 643
Powered Industrial Trucks
065531 (One Time)
Production and Related
Units
250 315
SAT Meetings Various Production and Related
Units – Managers; SAT
Members; Team Leads
500 2000
Confined Spaces Awareness 1110 1110
SHEA Training
Our site uses a number of alternate
training methods, including short
booklets, short courses, and
seminars. The subject matter is
usually specific to one topic and
relevant to the audience. Booklet
training provides a low-cost
alternative to formal classroom
training and gives the manager and
team control over when and how
they wish to learn.
The SHEA organization increased its
training outputs by 18% in 2002.
Highlights included the release of
three new booklets, mostly focused
on our Production customer, and
enhanced team-based Hazard
Communication.
2002 SHEA Training General Subjects
22 SHEA ANNUAL STEWARDSHIP REPORT
Hours of
Initial
Tmg/Cert
Training for
WhomCourse Title
Training
Provider
Training and
Certification
Radio Crane
Cattron 800
3.0/1.0 Production,
Tooling,
Production
Control,
(Facilities) as
needed.
Not for tagline
operators
Training and
Certification
Hanging
Gardens
Operations
10.0/1.0 Employees
working in Bays
4 and 5
Training and
Certification
Torres S/C
Lifting
8.0/8.0 Facilities,
Production
Training and
Certification
Pendant Crane/
Rig and Lit
4.0/1.0 Production,
Tooling,
Production
Control,
(Facilities) as
needed.
Not for tagline
operators
Training and
Certification
Course No.
Cert Code
036562
55322G
036839
55317G
053025
55111G
035956
55356G
054550
55155G
Damage Crane
Operations
8.0/2.0
Hours of
Retraining/
Recert
1.0
1.0
8.0
1.0
2.0
Prerequisites
• Fed/Cal OSHA Regulatory Drivers
• Contract Req’s
• Boeing Command Media
55356G 29 CFR
1910.179
036562 or 8 CCR
036343 4884-5049
TA-SAF-008.1
035956 or 29 CFR 1910.179
036057 or 8 CCR
036060 or 4884-5049
036572 or TA-SAF-008.1
036021 or
036562
55322G 29 CFR 1910.179
8 CCR
4884-5049
29 CFR 1910.180
8 CCR
4920-4940
TA-SAF-008.2
55322G CFR 1910.180
8 CCR 4920-4940
TA-SAF-008.2
Frequency in
Months
24 Months
Lifetime
12 Months
24 Months
36 Months Facilities,
Production
The SHEA Training Matrix and
the Individual Training Plan
Database System, give managers
two new tools to identify and
administer safety training for
their teams. The Individual
Training Plan Database will be
fully deployed in 2003.
The Crane and Lifting Device Page of the SHEA Training Matrix
Critical to the success of the
Summer 2002 Assessment was our
publication of the SHEA Training
Matrix.
This document was published in
several SAT meeting booklets as
well as on the SHEA Web.
Management now has a guideline
on SHEA related training
requirements. The Training Matrix
will help managers select SHEA
courses for Individual Training Plans
in 2003.
SHEA Training Matrix
Individual Training Plan Screens
One of our most critical challenges
is accurately aligning SHEA training
for employees. We reached our first
milestone as a combined team from
SHEA, Training and Certifications
(T&C), and Information Technology
group (IT), completed a pilot for a
new database.
When logging onto Boeing Learning
Management System (BLMS),
managers will select SHEA training
and certifications via an on-line
questionnaire. Shown below are the
screens managers will see when
entering BLMS.
Individual Training Plans
Once Training commences in 2003,
each employee will have an
individual training plan, beginning
with safety and health requirements.
SHEA ANNUAL STEWARDSHIP REPORT 23
SHEA hosted its annual fair in
October. We invited dozens of
vendors from various areas of the
industry, including health care
providers, environmental groups,
and safety and health companies.
The intent of the event is to provide
employees with information related
to both on and off-the-job safety.
Information on the importance of
environmental programs, such as
recycling and waste minimization.
The events activities also include
health screenings provided by
vendors from the community.
2002’s fair attracted an estimated
3000 employees from both 1st and
2nd shifts. Each year, we conduct a
satisfaction survey to determine if
the employee’s felt the event added
value.
Annual SHEA Day & Fair
5.0
4.0
3.0
2.0
1.0
Information
Helps Me On
the Job
Information
Helps Me Off
the Job
Enjoyed
the Fair
Bring the
Fair Back
Next Year
0
EmployeeSatisfactionScale
GOOD
Survey Results from the SHEA Safety Day
and Fair Show High Employee Satisfaction
SHEA Fair Vendors
Show Their Wares
SHEA Fair Participant
Receives a Chair Massage
24 SHEA ANNUAL STEWARDSHIP REPORT
Dave Atkins
Air Quality
Michelle Alcaraz
C-13 Safety Engineering Support
Ray Paskauskas
Industrial Hygiene
Ron Fornator
Waste Water/Environmental Pollution
Robb Schwartz
SHEA Training
Dave Hinds
Hazardous Materials/Waste
Jana Roundtree
SHEA Administrative Support
The C-13 story illustrates
what can happen when
teams work together to
achieve a common goal.
SHEA played an integral part
in the start-up project. Working
with C-13’s management
team, SHEA ensured that
safety, industrial hygiene, and
environmental requirements
were engineered into start-up
efforts. Included were safety
and health signage, machine
and equipment approvals,
training, process consulting,
and environmental permitting
with local authorities.
The C-13 Story
Team C-13
SHEA ANNUAL STEWARDSHIP REPORT 25
During the December conference
team members arranged for several
guest speakers including Howard
Chambers, Steve Jugan, and Al
Parker, Ron Fornator, and John
Sterritt.
Robb Schwartz conducted a job
hazard analysis exercise designed to
identify hazards as they appear in
Production work instructions.
Attendees included most of the
Production, Quality, Production
Control, and Support Team Senior
Managers. They discussed various
topics, including safety equipment,
team accomplishments, the year in
review, and goal setting for 2003.
SAT members led discussions and
recorded team observations for
further evaluation. As this partnership
develops, we believe we will see
continued safety, health, and
environmental improvements in
Production and related areas.
Senior Managers listened
intently to guest speakers
at the SAT/EI offsite.
Donna Sushinsky completes her
team’s job hazard analysis as
Mohammed Yassaman looks on.
SAT/EI Offsite Planning and
Communication Conference SAT/EI 2002 Accomplishments
• Conducted Weekly Assessments
• Completed Two Benchmark Trips.
Trip one to Boeing Satellite
Systems in El Segundo and to the
National Safety Council Annual
Conference in San Diego
• Facilitated Improvements to Shop
Ladder System
• Facilitated Roadwork Improvements
• Increased Attendance/Participation
in Monthly Safety Action Team
Meetings
26 SHEA ANNUAL STEWARDSHIP REPORT
Safety Awareness through
Employee Involvement and
SHEA combined to host an
offsite planning and
communication conference
in December.
Process Management
SECTION 6
Safety, Health and Environmental
Affairs (SHEA) PBM Metric Set
Shea continues to improve its key
processes by the use of Process
Based Management (PBM). The
PBM company standard is applied
to four key processes including its
internal audit program, medical,
workers’ compensation, and
environmental, plus the overall
SHEA process. The SHEA team
continued to document other key
processes, as well.
2002 brought unique challenges to
the SHEA organization. Expanding
customer support, specifically in
the major Production IPT’s,
generated interest in identifying
and documenting the cluster team
process, the Directorate SAT
meetings, and the Directors’
Steering teams.
In addition to PBM, the SHEA
organization met all of its
commitments to the ISO, BQMS,
and Lean Manufacturing
assessments in 2002.
SHEA processes focus on
prevention technologies.
SHEA Process Management
SHEA ANNUAL STEWARDSHIP REPORT 27
Results for 2002
SECTION 7
2.5
2
1.5
1
4.0
3.5
3
0.5
2001
Goal : 2.74
2002
All Up Rate
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
2.2 2.24 2.252.19 2.222.28
2.42 2.4 2.462.48 2.57
2.31 2.31
0
LostWorkdayCaseRate
GOOD
# of Lost Day Cases X
200,000 Labor Hours
10
8
6
4
16
14
12
2
Goal : 11.1
2002
All Up Actuals
Jan
9.86
Feb
9.95 9.87 10.1 9.95 10.1
9.45 9.2 9.11 8.84 8.57 8.44
Mar Apr May June July Aug Sept Oct Nov Dec
0
RecordableInjuryCaseRates
GOOD
# of Recordables X
200,000 Labor Hours
Lost Workday Rates
Recordable Injury Rates
Boeing IDS Long Beach faced
many challenges during the
past year. Yet, we rallied late in
the year and demonstrated
improving trends on key metrics.
Recordable Case Rate
The site achieved a 15% reduction
in recordable case rates by the end
of 2002. Note the trend from
September through year-end.
• 15% Reduction From 2001
• 24% Reduction From Goal
Lost Workday Case Rate
• 15.6% Reduction From Goal
28 SHEA ANNUAL STEWARDSHIP REPORT
SHEA ANNUAL STEWARDSHIP REPORT 29
Historical Results and Current
Comparisons
Key SHEA metrics include
Recordable Injury Rates, Lost
Workday Case Rates, and Benchmark
Comparisons Between Like Industry
Groups. SHEA metrics focus on
both end results and processes.
Noting a recordable injury rate of
about 8.5 per 100 employees in
2002, the site has shown a 56%
reduction since 1993. Recordable
injuries declined 15% in 2002.
2002 proved to be a generally mixed
year in traditional Occupational
Injury and Illness statistics.
The Lost Workday Case Rate appears
to have stabilized and we expect a
decrease from 2003 onward. There
has been a 55% decrease over the
10 year time period.
These figures are best viewed
through a comparative lens.
The chart below shows IDS Long
Beach recordable case rates in
comparison to other large airframe
manufacturers. Included here are
Everett, Renton, Long Beach
Commercial Division, and the C-130
Lockheed plant. Boeing programs
include products, such as the 717,
737, 757, 747, 767, 777, and, of
course, the C-17. These metrics
reflect data through the end of
2002.
10
5
15
25
20
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
0
RecordableInjuries
19.5
13.7
8.3
9.6
6.92
9.58 9.92
7.53
6.66
8.48
5
4
3
2
6
1
1993
5.13
1994
3.48
1995
1.61
1996
1.54
1.94
2.22 2.18
1.2
1.83
1997 1998 1999 2000 2001 2002
0
LostWorkdayCaseRates
2.31
10
8
6
4
16
14
12
20
18
2
2002
Everett
13.113.5
14.8
11
8.5
0
RecordableInjuryCaseRates
Renton Lockheed C-130
Long Beach Commercial Boeing IDS LB
Recordable Injuries 1993 – 2002
Showing a 56% Reduction
Lost Workday Case Rates 1993 – 2002
Showing a 55% Reduction
Recordable Case Rates
Comparisons 2002
30 SHEA ANNUAL STEWARDSHIP REPORT
The graphic above shows similar
data for Lost Workday Case Rates
against the same set of comparisons.
Key to our success in 2002, SHEA
moved ahead as it increased
performance in certain key process
metrics.
Included here were improvements
in training results. (Using process
focus, scheduled reviews and
reporting techniques, Production
units noted a healthy 95% rate of
completion for key booklet training,
such as Lockout Tagout, Injury and
Illness Prevention, and Hazard
Communication.) Such vigilant
focus on these metrics helped the
site’s performance during the
assessment in July. The graphic
below-left shows overall Production
Training results in these key areas.
There are two types of workers’
compensation costs – allocated or
planned, and incurred, or actuals.
In 2002, we succeeded in reducing
our Workers’ Compensation incurred
costs from 2001. This reduction
will help us reduce our program
costs and provide a safer workplace.
2002
2.5
5.1
2.3
1.2
5
4
3
2
8
7
6
9
1
0
7.3
Everett Renton
Lockheed C-130
Long Beach Commercial
Boeing IDS LB
LostWorkdayCaseRate
10
100
80
60
40
20
IIPP Fall HearingLOTO Haz Com
979595
99
0
BookletCompletions
95
SHEA Training Factoid: SHEA and
its agents delivered more than
12,000 training hours in 2002.
25
20
30
15
10
5
2001 2002 20031999 2000
7.1
6.1
0
$Dollars(M)
10.75
8.0
15.79
9.7
18.7
6.5
0.0
Allocated Incurred
33% Reduction
in Incurred Cost
2001 – 2002
24.9
Lost Workday Case Rates
Comparisons – 2002
Training Booklet Results –
Production Focus
IDS Long Beach Workers’
Compensation Cost Reduction Chart
(Valued as of December 31, 2002)
SHEA ANNUAL STEWARDSHIP REPORT 31
SHEA Balanced Scorecard Results
The Balanced Scorecard
demonstrates a more complete
metric designed to look at other
business health measures besides
financials. The site performed well
during the past year as this excerpt
of the Quality Balanced Scorecard
illustrates. The Performance Matrix
shows our performance.
Scoring Criteria (Year to Date Relative)
A&M Key
Imperatives Key Metrics
A1 Team-based Organization
% Positve Improvement in
Employee Survey
Weight
(%)
10
Stretch
9 8 7
Goal
6 5
4.0% 115% 110% 105% 100% 95% 90%
A2 Developing Leaders 5.0% 10 9 8 7 6 5
A3 Developing Employees 5.0% 10 9 8 7 6 5
1.0% 90% 85% 80% 78% 75% 70%
PERFORMANCE MATRIX – October 2002
Quality Site Scorecard
11 Nov 02 SHEA Update for October
A4 Develop Inclusive
Environment (Diversity)
4.0%
>1 AAP
Group
+1 AAP
Group
pkmt
CM>0
100% 95% 90%
A5 (a) 11.1 incidents per
200k Hours
4.0% ≤10.77 ≤10.93 ≤11.09 11.1 ≥11.11 ≥11.66
A5 (b) 2.74 Lost Workday
Cases per 200k Hours
4.0% ≤2.66 ≤2.70 ≤2.737 2.74 ≥2.743 ≥2.88
A5 (c) 40.7 Ave Pounds
(x 1k) of Hazardous Waste
4.0% ≤39.48K ≤40.09K ≤40.66K 40.70K ≥40.74K ≥42.74K
A7 WSS – Supervisory
Communication by 2%
1.0% 97% 95% 83% 81% 80% 75%
A7 WSS – ESI Survey Score
of 80% (Baseline = 77%)
1.0% 90% 85% 80% 77% 75% 70%
A7 WSS – Each Manager to
Conduct One Roundtable/Qtr
1.0% 115% 110% 105% 100% 95% 90%
A5 (d) No Major Findings
on 2002 SHEA Audit
4.0% 0 MgtSys < 1 Med 1 Med
process
0 Sig ≥1 Sig
Strengthen
the Team
SHEA Balanced Scorecard
(Blue Highlights SHEA 2002 Performance)
2401 East Wardlow Road, Long Beach, California 90807

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SHEA-AR2003

  • 1. ANNUAL STEWARDSHIP REPORT 2002 IDS – LONG BEACH Safety, Health, and Environmental Affairs
  • 2. This booklet was designed and produced by Safety, Health, and Environmental Affairs. Questions or comments, please call (562) 593-8233. Published 2003 by The Boeing Company, 2401 East Wardlow Road, Long Beach, California 90807 Boeing Proprietary, Confidential and/or Trade Secret Copyright © 2003, The Boeing Company.
  • 3. ANNUAL STEWARDSHIP REPORT 2002 IDS – LONG BEACH Safety, Health, and Environmental Affairs
  • 4. SHEA ANNUAL STEWARDSHIP REPORT SHEA Vision 3 SHEA Leadership Team 4 The Year In Review – Making Partnerships Work 6 Executive Summary, Charter, Mission, Vision, and Role 9 SECTION 1 Organizational Leadership, Public Responsibility, and Citizenship 10 SECTION 2 Strategy Development and Deployment 12 SECTION 3 Customer and Market Focus ENVIRONMENTAL TEAM 13 SAFETY AND INDUSTRIAL HYGIENE 14 MEDICAL 16 SECTION 4 Information and Analysis 17 SECTION 5 People and the Human Resource 18 SECTION 6 Process Management 27 SECTION 7 Results for 2002 28 Contents
  • 5. John Sterritt Senior Manager, SHEA Al Parker Director of Quality Our IDS Long Beach SHEA is dedicated to providing a safe and healthful workplace. We do so through the collective experience of our people, processes, and systems. Boeing IDS employees are engaged to make this vision a reality. In 2002, we reduced recordable injuries by 15%. Although we faced many challenges, the workforce continued to perform safer and more efficiently. SHEA ANNUAL STEWARDSHIP REPORT 3
  • 6. Cliff Tanigawa ensured SHEA Assessment Compliance, PBM, MSA, JSM, and SHEA Balanced Scorecards met all requirements. Noel Chan headed the team of dedicated safety professionals. His group conducted assessments of shopfloor processes, and consulted with management to provide a safe and healthful workplace. Noel’s team provided safety engineering services and industrial hygiene support, such as noise sampling, monitoring and safety design support. Nancy Sheps joined the SHEA team from Boeing Satellite Systems. Nancy led the Environmental, Workers’ Compensation, and Medical teams while integrating SHEA processes into the daily business of the site. 4 SHEA ANNUAL STEWARDSHIP REPORT SHEA Leadership Team Nancy Sheps, P.E. Manager, Environmental, Workers’ Compensation, Medical, and SHEA Processes Cliff Tanigawa, C.I.H., C.S.P. Staff to Senior Manager Noel Chan Manager, Safety and Industrial Hygiene John Sterritt, C.S.P. Senior Manager, SHEA
  • 7. Ron Fornator Environmental Team Lead, Water Specialist Renita Howard Workers’ Compensation Ray Paskauskas, C.I.H. Industrial Hygiene Lisa Arevalo, R.N. Medical Lisa Arevalo, the Medical Lead, provided support, helping the site’s employees stay healthy and safe. Ron Fornator served as our Environmental Team Lead. Our Environmental Team handles several different programs including Hazardous Waste Management, Air Quality, Waste Water and Site Permitting. Ray Paskauskas, our Industrial Hygiene Team Lead, handled several different programs including Confined Spaces, Respiratory Protection, the Hearing Conservation Program, Hazard Communication, and much of our sampling services. Renita Howard served as our Workers’ Compensation Team Lead. Our workers’ compensation team helped the site reduce incurred costs. SHEA ANNUAL STEWARDSHIP REPORT 5 Team Leads
  • 8. The Year In Review MAKING PARTNERSHIPS WORK 6 SHEA ANNUAL STEWARDSHIP REPORT Together, we celebrated as Ship 100 moved through the factory. The C-17 program captured California Gold during the California Association for Performance Excellence (CAPE) Award run, and the Military Aerospace Support (MAS) group won silver with 5 teams capturing Quality awards in different CAPE competitions. SHEA supported the applications in all seven critical categories with key process data, metrics, and site visit interviews. Site performance during both the SHEA Effectiveness Review in March and the comprehensive SHEA Assessment in July, moved the site closer to recognized corporate leadership in Safety, Health, and Environmental Affairs. Boeing assessors acknowledged the site for several Best Practices including the Executive Safety Committee, SHEA integration into downsizing plans, Hazard Communication, and internal assessment self-governance. 2002 turned into one victory celebration after another for the site. In addition, it was a year of enhanced partnering for the SHEA organization. In 2002 we saw enhanced customer relationships with: • Production IPT/SHEA Assessment Preparation • Safety Action Team/Employee Involvement Initiatives • UAW Safety Committee/SHEA Joint Projects • C-13 Team/SHEA Start-up Project • Training and Certification/ACLC/ IT/SHEA Individual Training Plan Development
  • 9. • SHEA supported Industry Week’s 2002 Best Plants Award win. Safety and Environmental programs was one of 12 categories the judges evaluated to gauge overall site performance. • Achieved 15% reduction in recordable injuries. • Working with SSG, reduced site incurred workers’ compensation cost by $3.2M (33% reduction) from 2001 through 2002. • Reduced reportable workers’ compensation claims to insurance carrier from 1600 in 2001 to 970 in 2002 (40% reduction). • Closed 100% of the open findings from the 2001 Corporate SHEA Effectiveness Review. • Reduced Corporate SHEA Assessment process and program findings by 78% (with 0 major findings) from 2000 to 2002 assessment results. • Designed and deployed a new aircraft confined space entry program, resulting in a 90% reduction in permits generated (2000 in ‘01 to 200 in ‘02), an estimated $2.5M in annual cost savings and dramatically reduced compliance liability. • Supported system design of the new Individual Training Plan (ITP) database system. • Published the SHEA Training Matrix. • Published TA-SAF-057, SHEA Corrective Actions and modified other SAF procedures. • Worked with DCMA and Supplier Management to move ordnance to Black Angel Mine. • Replaced AIG and integrated Kemper Insurance as the new Workers’ Compensation insurance carrier. • Deployed the Manager’s Report of Injury and Illness (MD 1715) reporting process to the web for management convenience. • Enhanced Grade D breathing air and ventilation system for aircraft confined space entry process. • Published and released two new training booklets (Taglines and Powered Industrial Trucks). • Achieved a score of 3.5 (out of 5.0) and received a company- wide Best Practice for SHEA in the Lean Manufacturing Assessment (LMA). • Supported design, construction and start-up of C-13 fabrication and quick response facility. • Received zero environmental citations (10 years). • Achieved 100% NESHAPS compliance. • Placed Material Safety Datasheets (MSDS) on-line (Shopfloor 2000-Solumina system), making them accessible to anyone in the Production environment. • Deployed job specific hazard communication tools onto the web, thus improving personal protective equipment technology for Production employees. • Supported efforts to achieve California Association for Performance Excellence (CAPE) Gold for C-17, and Silver for the MAS group. • Completed restructuring of the SHEA management team and site Workers’ Compensation team. • Provided more than 12,000 SHEA-related training hours. 2002 Achievements SHEA ANNUAL STEWARDSHIP REPORT 7
  • 10. 8 SHEA ANNUAL STEWARDSHIP REPORT Organizational Profile Safety, Health, and Environmental Affairs (SHEA) acts as the primary focal point for contractual, governmental and company safety, environmental, regulatory, and compliance requirements. The chart on page 12 shows the relationships between those agencies and our company supporting documents. SHEA’s main products and services include internal consulting, medical operations management, training, audits, various reports, and key site data that are used by management to provide a safe and healthful workplace. We have both internal and external customers. Our internal customer segment consists of our various Integrated Product Teams, site tenants, USAF base MAS personnel and unionized production workforce. Our external customer segment is the Air Force Safety Representative. Our products and services are delivered daily to our customer base with the help of our dedicated safety representatives. Organizational Description SHEA operates in a team-based culture where SHEA requirements and practices are integrated into our customers’ business. Our customers seek high-quality, dependable, and timely safety, environmental, and workers’ compensation data that they use to maintain a safe workplace. SHEA is also part of a larger supply chain where governmental, contractual, and company requirements are integrated into the site’s business. We process those requirements into workable products and services and in turn, help keep the site compliant to the requirements, while reducing costs and improving quality. Much of our business is based on a sound and systematic communication model where we constantly monitor the environment and inform our customers of the latest SHEA developments. Key Strategic Challenges Our key strategic challenge is to prevent industrial injuries and illnesses in an environment where the workforce is “maturing” and downsizing, and we are increasing our production rate year by year.
  • 11. Executive Summary, Charter, Mission, Vision, and Role SHEA supports the Boeing IDS site, including Long Beach military aerospace support operations. The bases include McChord, Charleston, Brize Norton in England, and Altus. Additionally, we support SHEA management at Macon, High Desert (HDAIT), and Palmdale operations. SHEA Vision Our SHEA Vision is tied to the Boeing 2016 Vision where we value our employees and their families in achieving a safe community. SHEA Mission Our SHEA mission is to create an environment where employees contribute to a safe, sound, systematic, process-driven, safety, health, and environmental program. SHEA Charter Our SHEA charter is to ensure a safe and healthful workplace by providing training and awareness programs, preventive audits and feedback, organizational meetings, Industrial Hygiene air and noise sampling, and providing engineering solutions where possible. Executive Safety Committee (ESC) The Executive Safety Committee (ESC) shapes SHEA direction and improvement. Key SHEA projects are tracked by the Committee, and corrective actions evaluated for effectiveness and statused by process owners. In 2002, the ESC: • Led the site through the SHEA assessment, contributing to a 78% reduction in findings with zero major findings • Supported design and implementation of a new Confined Spaces process using alternate procedures • Supported design and implementation of the new Individual Training Plan database • Directed new injury review process SHEA Role Our SHEA Role is to support the operation in improving quality, safety and environmental compliance. SHEA ANNUAL STEWARDSHIP REPORT 9
  • 12. Organizational Leadership, Public Responsibility, and Citizenship SECTION 1 10 SHEA ANNUAL STEWARDSHIP REPORT Executive leadership sets the tone and direction of a safe and healthy workplace. Dave Bowman Vice President, C-17 Program Steve Jugan Vice President, Production Al Parker Director, Quality Howard Chambers Vice President/General Manager, Airlift & Tanker Programs Leading the charge is Howard Chambers. His skillful leadership guided the site through the SHEA assessment in July resulting in marked improvement from our previous audit in 2000. In addition, Howard’s ongoing participation and support of our partnership with the Safety Awareness Teams have enhanced employee involvement. Dave Bowman joined the Executive Safety Committee this year. Dave’s leadership has resulted in many new duties as VP of Production has helped SHEA processes remain at the forefront of management’s attention. Al Parker is the new leader of the Quality organization. SHEA falls under his direct guidance. We welcome his creative and steady support as we move into the new year. improvements to the process this year, including a robust tracking system, more open and beneficial discussions on safety and well- being, and employee involvement. Steve Jugan led SHEA’s development as the former head of Quality. Steve held weekly reviews on key SHEA processes and procedures, guiding, encouraging, and helping the site achieve a safe and healthful work environment. Steve’s continued support in his
  • 13. SHEA ANNUAL STEWARDSHIP REPORT 11 One of the most critical and visible areas of our operation is environmental compliance. Improving environmental quality is of the utmost importance to the site and promotes Vision 2016, as well as our local values and vision. We use quality tools such as Process Based Management (PBM) to help us manage our environmental process and, in so doing, find opportunities for improvement. The C-13 start-up was a demonstration of the importance of our environmental affairs program. in a row. 2002 was the third year in a row that we did not have to report under the Toxic Release Inventory System. Our emissions were under the threshold. The chart shown below illustrates how we have reduced EPA 17 (EPA’s list of 17 restricted chemicals) chemical usage while increasing aircraft production rate. Substituting non-hazardous materials during aircraft assembly whenever possible helps decrease risk to employees and to the environment. Our environmental team was included in all start-up discussions and fundamentally changed the way we work. The team supported the effort by executing all environmental permitting requirements for air, water, recycling, and hazardous waste. This allowed the site to open on time and on budget. In 2002, our Environmental team helped the site achieve a 43% reduction in EPA restricted chemicals. We reduced EPA restricted chemical usage per aircraft delivered for the 13th year The Environment and Public Citizenship 18 16 14 12 10 8 6 4 2 0 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 1995 1996 1997 1998 1999 2000 2001 2002 0 PlanesDeliveredperYear Pounds Number of EPA 17/Aircraft Number of ODC/Aircraft Planes Delivered EPA 17 and ODCs per Aircraft
  • 14. Strategy Development and Deployment SECTION 2 12 SHEA ANNUAL STEWARDSHIP REPORT SHEA Requirements and Key Process Map A&M Policy/Procedure TA-227 A&M Safety and Health Strategy Plan SHEA_AR02-01 SHEA Accountability TA-222 SHEA Programs TA-006 8.01 8.02 8.03 8.04 8.05 PBM PROCESSES ACTION J F M A M J J A S O N D SHEA Processes TA-062 Training Certifications TA-024 1 2 3 ACTION J F M A M J J A S O N D 1 2 3 Federal Regulations 29 CFR State of California Regulations 8 CCR 3203 and More Boeing Requirements Policy 4 PRO 1021 PRO 910 (and More) 3203 Requires: Responsible Individual Hazard Recognition Communication Inspections and Audits Discipline and Recognition Training Recordkeeping Correction of Safety and Health Deficiencies A&M SoCal Safety Improvement Plans SHEA processes are integrated into the site’s strategic plan. 2002 Results • Reduced Recordable Injuries by 15% • Reduced Incurred Workers’ Compensation Costs by 33% • Lost Workday Case Rate remained flat through 2002 • Received No Major Findings in the Boeing SHEA Corporate Assessment • Improved Relationship with Both Production and Field-Based Customers Key 2002 SHEA Strategies & Goals • Reduce Injuries • Reduce Lost Workday Cases • Reduce Workers’ Compensation Costs • Enhance Customer Satisfaction • Achieve No Major Findings on the Boeing SHEA Corporate Assessment SHEA submits plans and goals, which then are integrated into our IPT structure. This ensures that key SHEA requirements are engineered into the business. All SHEA requirements are driven by federal, state, and local regulations. These translate into Boeing corporate requirements that, in turn, drive our own procedures and processes. The figure above shows the main safety, health, and environmental drivers. Regulatory, Contractual Drivers & Corporate Policies and Procedures
  • 15. Customer and Market Focus ENVIRONMENTAL TEAM Dave Atkins Air Specialist Dave Hinds Recycling, Hazardous Material Ron Fornator Environmental Team Lead, Water Specialist The SHEA team leads provide an invaluable support function for our management team. Team Leads support Safety, Environmental, Workers’ Compensation, and Medical. The Environmental function supports ground and air pollution prevention practices, stormwater, hazardous waste, recycling, and a host of other support areas. We successfully supported development of the C-13 facility by acquiring air and water permits and We recycled over 236,000 pounds of hazardous materials, with a resulting cost savings of $33,000. These materials would have been disposed of as a hazardous waste if not recycled. The recycle percentage is currently 37% of total hazardous materials disposition. The site also maintained 100% compliance with Aerospace National Emission Standards for Hazardous Air Pollutants for each operational day in 2002. setting up hazardous waste collection and disposal processes. In addition, we submitted all required water quality and emergency response plans to the city. The site had another year with no environmental fines and no violations from any environmental agency. There were no findings above a Local Attention Item as a result of the Company SHEA Audit. This resulted in a 100% reduction in audit findings requiring a correction action plan. SECTION 3 SHEA ANNUAL STEWARDSHIP REPORT 13
  • 16. Customer and Market Focus SAFETY AND INDUSTRIAL HYGIENE SECTION 3 14 SHEA ANNUAL STEWARDSHIP REPORT Ron Irby Center Fuselage and MAS Support Skip Clark Wing and SHEA Data Support Michelle Alcaraz Production Control, C-13 Support and SHEA Communications Sam Bush 2nd/3rd Shift Support Doc Momtaz Frontline Support and SHEA Ergonomic Focal Dedicated support to our direct customers is what SHEA is all about. Shown below are key SHEA customer support members. Customer & Market Focus SHEA serves both internal and external customers. Our external customer is the United States Air Force. Our primary internal customer is the employee IPT base, including off-site support. We serve our customer base in many different ways including process and procedure development, training, consulting, and electronic databases. Employee Safety Concerns SHEA uses the Employee Safety Report (ESR) process to handle employee safety concerns. Employees and managers filed 62 ESR’s in 2002. SHEA and the UAW Safety Committee, in partnership, closed all but seven of them, an 89% success rate. The UAW Safety Committee (Kenny Elmore, Tony Connelly, and Ed Lopez) have worked diligently with the SHEA Team to close open ESR’s during 2002. The site had a 12% reduction in open ESR’s at years end from 2001 data.
  • 17. SHEA ANNUAL STEWARDSHIP REPORT 15 Rob Stern Ramp, Paint and Ground Safety Officer Jessie Elizalda Medical Support Wayne Larson Test and Evaluation Support Kim Foster Fuselage Support, Office Ergonomic Focal and I.H. Support Key Customer Listening and Learning Methods SHEA employs a number of key listening posts throughout the organization. Included are employee surveys, the monthly Safety Awareness Team meetings, Executive Safety Committee, and numerous other meetings, such as the team-based clusters, IPT director’s SAT meetings, and the SAT/EI meetings. In every case, employees have an opportunity to voice concerns. Other listening and learning opportunities include the Facilities Trouble Ticket Website, the Wing Team Support Center Safety webpage, monthly departmental safety meetings, and our own SHEA Website.
  • 18. Customer and Market Focus MEDICAL SECTION 3 16 SHEA ANNUAL STEWARDSHIP REPORT Medical Department Performance Our Medical team sees hundreds of employees each month. Services include medical treatment for injuries and illnesses, medical exams, and consultations. Last year’s throughput averaged more than 500 employees per month. The Medical Operation Team received outstanding employee survey scores during the 2002 Boeing Clinical Operations Customer Survey. Jan Feb Mar Apr May June Month July Aug Sept Oct Nov Dec 500 400 300 200 800 700 900 600 100 0 NumberofCases 725 714 738 820 696 742 643 627 641 652 583 434 C-17 Medical Throughput for 2002 Min Noche Registered Nurse Lisa Arevalo Medical Lead, Registered Nurse Jessie Elizalda Medical Support The Medical Operation Team received zero assessment deficiency findings during the 2002 corporate SHEA assessment. • Staff Was Professional: 99% Excellent/Good • Staff Was Knowledgeable: 98% Excellent/Good • Rate the Facility: 98.3% Excellent/Good • Rate Overall Experience: 98.4% Excellent/Good • Was Wait Time Appropriate: 96.7% Said Yes
  • 19. Information and Analysis SECTION 4 SHEA launched several new tools helping the site to provide better and more convenient training to the work teams. SHEA ANNUAL STEWARDSHIP REPORT 17 Illustrated below is the specialized Job Specific Hazard Communication sheets. Working alongside our Production counterparts, SHEA professionals assessed hazards throughout the production facility and generated specialized department-specific tools. These were communicated to each workteam between March and July, ensuring that employees were made aware of hazards pertaining to them in their area. The corporate SHEA assessors identified this as a Best Practice for employee accessibility. These methods were generated as a result of a partnership between the Production and SHEA teams. A corrective action team from the Wing IPT developed a website providing a unique and graphic approach helping management protect the workforce. Now, managers can find their department’s specific hazards, key procedures, training data, and forms needed to complete their safety tasks on-line. Page 2 of the MD-1858 provides a hazard specific breakdown of work practices, personal protective equipment, and chemicals in each Production department. The Safety Website, supported by our partners in the Wing Team Support Center, provides tools to help managers protect their employees.
  • 20. People and the Human Resource SECTION 5 SHEA plays a critical role in our customers’ business. We have co-located several of our staff members into the Team Support Centers. This Integrated Approach Supports the IPT Business Concept Ramp and Paint Frontline IPT Center IPT Fuselage IPT Wing IPT 2nd and 3rd Shifts Sam Bush Skip Clark Kim Foster Ron Irby Doc Momtaz Rob Stern Michelle Alcaraz Production Control and C13 Recognitions As a key support function on the site, SHEA works to integrate all of its processes into its customer’s business. For example SHEA provides a dedicated professional to each Integrated Process Team (IPT). SHEA safety professionals are assigned to key Production units on a dotted-line basis and are colocated in the Fuselage and Wing Team Support Centers or the customer’s management hubs, such as The Frontline or Ramp organizations. Don Pitcher Receives a SHEA Appreciation Award Recognitions play a key role in building a motivated and effective workforce. Pictured are Don Pitcher, Director of the Wing IPT and Robb Schwartz. Don played a vital part in helping SHEA and the site pass both the SHEA Effectiveness Review in March and the SHEA site assessment in July. 18 SHEA ANNUAL STEWARDSHIP REPORT
  • 21. SHEA ANNUAL STEWARDSHIP REPORT 19 Tim Miller, Wing IPT TSC Director, and co-chaired by Ray Paskauskas of SHEA, designed, developed, and deployed an alternate method for confined space entry. The new procedures were developed to allow employees performing confined spaces work to execute their duties without the need of respirators. This has proven popular with wing tank entrants, as well as with employees entering the bilge. Al Parker (Quality) and John Sterritt, SHEA, present Bob Souza, Fuselage Director, with his safety recognition. Wing Employees Nancy Navarrette, Jay Galloway, and Rafael Castillo are recognized for SHEA Effectivenes Review Support by John Sterritt, SHEA Senior Manager. Confined Spaces Improvement Team. Bob Souza, Fuselage Director, was recognized this year for innovative approaches to safety improvement. He is shown receiving his award from Al Parker, Director of Quality and John Sterritt, Senior Manager, SHEA. Wing IPT employees Nancy Navarrette, Rafael Castillo, and Jay Galloway were recognized for a job well done by John Sterritt of SHEA (right) at the March 28 Executive Safety Committee meeting. The award was presented by the SHEA organization in recognition of the trio’s efforts at helping the site close out several safety actions from the 2000-2001 SHEA Assessment. The website is shown in Section 4. Nancy and Rafael have also developed a site-wide website, which incorporates personal protective equipment requirements for every Production department. SHEA supports a team-oriented culture. The Confined Spaces Improvement Team, chaired by Not shown, but also receiving SHEA recognitions were Art Balazs and Joe Maltese for Executive Management Support
  • 22. 20 SHEA ANNUAL STEWARDSHIP REPORT Team Safety Award Winners from the Wing Tooling Team. SHEA Instructor Robb Schwartz with the December 2002 newly transferred group. Team Safety Award Winners – Wing Tooling Team SHEA Training – Commercial Transferred Employees The Team Safety Award is given annually to the team exhibiting both an excellent safety record and consistent safety process management. Included here are regularly scheduled safety meetings, self inspections, training, and, of course, an excellent safety record. This year’s award was captured by the Wing Tooling Team, headed by Cliff Carlin. The PTP AIW team met for several days to discuss how Safety, Planning, and Production processes often interact with one another. The team presented their findings at the Executive Safety Committee in October. PTP AIW Team Safety, health, and environmental training is a strategic prevention tool. SHEA supports the transfer of employees by planning and executing a robust training package that outlined key training deliverables for every transferred employee. The course combines lecture, guest speakers, mini-course booklets, and accompanying quizzes to enhance the learning experience. Transferred employees are brought up to speed on SHEA practices, the role of the UAW, key SHEA contacts, problem solving, Hazard Communication, Injury and Illness Prevention Program, and other SHEA-related topics. The PTP AIW Team identified issues and presented to the Executive Safety Committee.
  • 23. SHEA ANNUAL STEWARDSHIP REPORT 21 In addition to on-going support from Training and Certifications (T&C) and the Advanced Craftsmanship Learning Center (ACLC), SHEA provides process and compliance- related topics. SHEA continued its alternative training approaches in 2002. Once again, SHEA met the challenge of a mobile and dynamic workforce by providing more than 12,000 hours of formal training and certifications, and by so doing raised compliance for our key Production customer to levels above 95%. Included above are titles from the SHEA Training Library. Number of Employees Affected (Target Population) Training Hours Provided 2002Audience Training Booklet or Course Title Requirements Hazard Communication Course (052703) Production and Related New and Related Transfers Production and Related Units-Course is Taught at New Employee Orientation 2900 1400 Injury and Illness Prevention 051313 (One Time) Production and Related Units 2900 990 Fall Protection 063708 (One Time) Production and Related Units 1500 820 Lead Awareness (One Time) Production and Related Units 300 0 Taglines 064814 (One Time) Production and Related Units 500 300 Transfer Safety Orientation 055760 (One Time) Production and Related New and Related Transfers 500 500 Job Specific Workplace Safety Orientation + Hazard Communication II (Annually) 044512 Production and Related Units 2900 1140 Ergonomics Production and Offices 120 120 2002 SHEA Training Hours Total 11,538 Hearing Conservation (Annually as Identified) Production and Related Units 2700 2200 Lockout Tagout 060216 (One Time) Production and Related Units 2900 643 Powered Industrial Trucks 065531 (One Time) Production and Related Units 250 315 SAT Meetings Various Production and Related Units – Managers; SAT Members; Team Leads 500 2000 Confined Spaces Awareness 1110 1110 SHEA Training Our site uses a number of alternate training methods, including short booklets, short courses, and seminars. The subject matter is usually specific to one topic and relevant to the audience. Booklet training provides a low-cost alternative to formal classroom training and gives the manager and team control over when and how they wish to learn. The SHEA organization increased its training outputs by 18% in 2002. Highlights included the release of three new booklets, mostly focused on our Production customer, and enhanced team-based Hazard Communication. 2002 SHEA Training General Subjects
  • 24. 22 SHEA ANNUAL STEWARDSHIP REPORT Hours of Initial Tmg/Cert Training for WhomCourse Title Training Provider Training and Certification Radio Crane Cattron 800 3.0/1.0 Production, Tooling, Production Control, (Facilities) as needed. Not for tagline operators Training and Certification Hanging Gardens Operations 10.0/1.0 Employees working in Bays 4 and 5 Training and Certification Torres S/C Lifting 8.0/8.0 Facilities, Production Training and Certification Pendant Crane/ Rig and Lit 4.0/1.0 Production, Tooling, Production Control, (Facilities) as needed. Not for tagline operators Training and Certification Course No. Cert Code 036562 55322G 036839 55317G 053025 55111G 035956 55356G 054550 55155G Damage Crane Operations 8.0/2.0 Hours of Retraining/ Recert 1.0 1.0 8.0 1.0 2.0 Prerequisites • Fed/Cal OSHA Regulatory Drivers • Contract Req’s • Boeing Command Media 55356G 29 CFR 1910.179 036562 or 8 CCR 036343 4884-5049 TA-SAF-008.1 035956 or 29 CFR 1910.179 036057 or 8 CCR 036060 or 4884-5049 036572 or TA-SAF-008.1 036021 or 036562 55322G 29 CFR 1910.179 8 CCR 4884-5049 29 CFR 1910.180 8 CCR 4920-4940 TA-SAF-008.2 55322G CFR 1910.180 8 CCR 4920-4940 TA-SAF-008.2 Frequency in Months 24 Months Lifetime 12 Months 24 Months 36 Months Facilities, Production The SHEA Training Matrix and the Individual Training Plan Database System, give managers two new tools to identify and administer safety training for their teams. The Individual Training Plan Database will be fully deployed in 2003. The Crane and Lifting Device Page of the SHEA Training Matrix Critical to the success of the Summer 2002 Assessment was our publication of the SHEA Training Matrix. This document was published in several SAT meeting booklets as well as on the SHEA Web. Management now has a guideline on SHEA related training requirements. The Training Matrix will help managers select SHEA courses for Individual Training Plans in 2003. SHEA Training Matrix
  • 25. Individual Training Plan Screens One of our most critical challenges is accurately aligning SHEA training for employees. We reached our first milestone as a combined team from SHEA, Training and Certifications (T&C), and Information Technology group (IT), completed a pilot for a new database. When logging onto Boeing Learning Management System (BLMS), managers will select SHEA training and certifications via an on-line questionnaire. Shown below are the screens managers will see when entering BLMS. Individual Training Plans Once Training commences in 2003, each employee will have an individual training plan, beginning with safety and health requirements. SHEA ANNUAL STEWARDSHIP REPORT 23
  • 26. SHEA hosted its annual fair in October. We invited dozens of vendors from various areas of the industry, including health care providers, environmental groups, and safety and health companies. The intent of the event is to provide employees with information related to both on and off-the-job safety. Information on the importance of environmental programs, such as recycling and waste minimization. The events activities also include health screenings provided by vendors from the community. 2002’s fair attracted an estimated 3000 employees from both 1st and 2nd shifts. Each year, we conduct a satisfaction survey to determine if the employee’s felt the event added value. Annual SHEA Day & Fair 5.0 4.0 3.0 2.0 1.0 Information Helps Me On the Job Information Helps Me Off the Job Enjoyed the Fair Bring the Fair Back Next Year 0 EmployeeSatisfactionScale GOOD Survey Results from the SHEA Safety Day and Fair Show High Employee Satisfaction SHEA Fair Vendors Show Their Wares SHEA Fair Participant Receives a Chair Massage 24 SHEA ANNUAL STEWARDSHIP REPORT
  • 27. Dave Atkins Air Quality Michelle Alcaraz C-13 Safety Engineering Support Ray Paskauskas Industrial Hygiene Ron Fornator Waste Water/Environmental Pollution Robb Schwartz SHEA Training Dave Hinds Hazardous Materials/Waste Jana Roundtree SHEA Administrative Support The C-13 story illustrates what can happen when teams work together to achieve a common goal. SHEA played an integral part in the start-up project. Working with C-13’s management team, SHEA ensured that safety, industrial hygiene, and environmental requirements were engineered into start-up efforts. Included were safety and health signage, machine and equipment approvals, training, process consulting, and environmental permitting with local authorities. The C-13 Story Team C-13 SHEA ANNUAL STEWARDSHIP REPORT 25
  • 28. During the December conference team members arranged for several guest speakers including Howard Chambers, Steve Jugan, and Al Parker, Ron Fornator, and John Sterritt. Robb Schwartz conducted a job hazard analysis exercise designed to identify hazards as they appear in Production work instructions. Attendees included most of the Production, Quality, Production Control, and Support Team Senior Managers. They discussed various topics, including safety equipment, team accomplishments, the year in review, and goal setting for 2003. SAT members led discussions and recorded team observations for further evaluation. As this partnership develops, we believe we will see continued safety, health, and environmental improvements in Production and related areas. Senior Managers listened intently to guest speakers at the SAT/EI offsite. Donna Sushinsky completes her team’s job hazard analysis as Mohammed Yassaman looks on. SAT/EI Offsite Planning and Communication Conference SAT/EI 2002 Accomplishments • Conducted Weekly Assessments • Completed Two Benchmark Trips. Trip one to Boeing Satellite Systems in El Segundo and to the National Safety Council Annual Conference in San Diego • Facilitated Improvements to Shop Ladder System • Facilitated Roadwork Improvements • Increased Attendance/Participation in Monthly Safety Action Team Meetings 26 SHEA ANNUAL STEWARDSHIP REPORT Safety Awareness through Employee Involvement and SHEA combined to host an offsite planning and communication conference in December.
  • 29. Process Management SECTION 6 Safety, Health and Environmental Affairs (SHEA) PBM Metric Set Shea continues to improve its key processes by the use of Process Based Management (PBM). The PBM company standard is applied to four key processes including its internal audit program, medical, workers’ compensation, and environmental, plus the overall SHEA process. The SHEA team continued to document other key processes, as well. 2002 brought unique challenges to the SHEA organization. Expanding customer support, specifically in the major Production IPT’s, generated interest in identifying and documenting the cluster team process, the Directorate SAT meetings, and the Directors’ Steering teams. In addition to PBM, the SHEA organization met all of its commitments to the ISO, BQMS, and Lean Manufacturing assessments in 2002. SHEA processes focus on prevention technologies. SHEA Process Management SHEA ANNUAL STEWARDSHIP REPORT 27
  • 30. Results for 2002 SECTION 7 2.5 2 1.5 1 4.0 3.5 3 0.5 2001 Goal : 2.74 2002 All Up Rate Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 2.2 2.24 2.252.19 2.222.28 2.42 2.4 2.462.48 2.57 2.31 2.31 0 LostWorkdayCaseRate GOOD # of Lost Day Cases X 200,000 Labor Hours 10 8 6 4 16 14 12 2 Goal : 11.1 2002 All Up Actuals Jan 9.86 Feb 9.95 9.87 10.1 9.95 10.1 9.45 9.2 9.11 8.84 8.57 8.44 Mar Apr May June July Aug Sept Oct Nov Dec 0 RecordableInjuryCaseRates GOOD # of Recordables X 200,000 Labor Hours Lost Workday Rates Recordable Injury Rates Boeing IDS Long Beach faced many challenges during the past year. Yet, we rallied late in the year and demonstrated improving trends on key metrics. Recordable Case Rate The site achieved a 15% reduction in recordable case rates by the end of 2002. Note the trend from September through year-end. • 15% Reduction From 2001 • 24% Reduction From Goal Lost Workday Case Rate • 15.6% Reduction From Goal 28 SHEA ANNUAL STEWARDSHIP REPORT
  • 31. SHEA ANNUAL STEWARDSHIP REPORT 29 Historical Results and Current Comparisons Key SHEA metrics include Recordable Injury Rates, Lost Workday Case Rates, and Benchmark Comparisons Between Like Industry Groups. SHEA metrics focus on both end results and processes. Noting a recordable injury rate of about 8.5 per 100 employees in 2002, the site has shown a 56% reduction since 1993. Recordable injuries declined 15% in 2002. 2002 proved to be a generally mixed year in traditional Occupational Injury and Illness statistics. The Lost Workday Case Rate appears to have stabilized and we expect a decrease from 2003 onward. There has been a 55% decrease over the 10 year time period. These figures are best viewed through a comparative lens. The chart below shows IDS Long Beach recordable case rates in comparison to other large airframe manufacturers. Included here are Everett, Renton, Long Beach Commercial Division, and the C-130 Lockheed plant. Boeing programs include products, such as the 717, 737, 757, 747, 767, 777, and, of course, the C-17. These metrics reflect data through the end of 2002. 10 5 15 25 20 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 0 RecordableInjuries 19.5 13.7 8.3 9.6 6.92 9.58 9.92 7.53 6.66 8.48 5 4 3 2 6 1 1993 5.13 1994 3.48 1995 1.61 1996 1.54 1.94 2.22 2.18 1.2 1.83 1997 1998 1999 2000 2001 2002 0 LostWorkdayCaseRates 2.31 10 8 6 4 16 14 12 20 18 2 2002 Everett 13.113.5 14.8 11 8.5 0 RecordableInjuryCaseRates Renton Lockheed C-130 Long Beach Commercial Boeing IDS LB Recordable Injuries 1993 – 2002 Showing a 56% Reduction Lost Workday Case Rates 1993 – 2002 Showing a 55% Reduction Recordable Case Rates Comparisons 2002
  • 32. 30 SHEA ANNUAL STEWARDSHIP REPORT The graphic above shows similar data for Lost Workday Case Rates against the same set of comparisons. Key to our success in 2002, SHEA moved ahead as it increased performance in certain key process metrics. Included here were improvements in training results. (Using process focus, scheduled reviews and reporting techniques, Production units noted a healthy 95% rate of completion for key booklet training, such as Lockout Tagout, Injury and Illness Prevention, and Hazard Communication.) Such vigilant focus on these metrics helped the site’s performance during the assessment in July. The graphic below-left shows overall Production Training results in these key areas. There are two types of workers’ compensation costs – allocated or planned, and incurred, or actuals. In 2002, we succeeded in reducing our Workers’ Compensation incurred costs from 2001. This reduction will help us reduce our program costs and provide a safer workplace. 2002 2.5 5.1 2.3 1.2 5 4 3 2 8 7 6 9 1 0 7.3 Everett Renton Lockheed C-130 Long Beach Commercial Boeing IDS LB LostWorkdayCaseRate 10 100 80 60 40 20 IIPP Fall HearingLOTO Haz Com 979595 99 0 BookletCompletions 95 SHEA Training Factoid: SHEA and its agents delivered more than 12,000 training hours in 2002. 25 20 30 15 10 5 2001 2002 20031999 2000 7.1 6.1 0 $Dollars(M) 10.75 8.0 15.79 9.7 18.7 6.5 0.0 Allocated Incurred 33% Reduction in Incurred Cost 2001 – 2002 24.9 Lost Workday Case Rates Comparisons – 2002 Training Booklet Results – Production Focus IDS Long Beach Workers’ Compensation Cost Reduction Chart (Valued as of December 31, 2002)
  • 33. SHEA ANNUAL STEWARDSHIP REPORT 31 SHEA Balanced Scorecard Results The Balanced Scorecard demonstrates a more complete metric designed to look at other business health measures besides financials. The site performed well during the past year as this excerpt of the Quality Balanced Scorecard illustrates. The Performance Matrix shows our performance. Scoring Criteria (Year to Date Relative) A&M Key Imperatives Key Metrics A1 Team-based Organization % Positve Improvement in Employee Survey Weight (%) 10 Stretch 9 8 7 Goal 6 5 4.0% 115% 110% 105% 100% 95% 90% A2 Developing Leaders 5.0% 10 9 8 7 6 5 A3 Developing Employees 5.0% 10 9 8 7 6 5 1.0% 90% 85% 80% 78% 75% 70% PERFORMANCE MATRIX – October 2002 Quality Site Scorecard 11 Nov 02 SHEA Update for October A4 Develop Inclusive Environment (Diversity) 4.0% >1 AAP Group +1 AAP Group pkmt CM>0 100% 95% 90% A5 (a) 11.1 incidents per 200k Hours 4.0% ≤10.77 ≤10.93 ≤11.09 11.1 ≥11.11 ≥11.66 A5 (b) 2.74 Lost Workday Cases per 200k Hours 4.0% ≤2.66 ≤2.70 ≤2.737 2.74 ≥2.743 ≥2.88 A5 (c) 40.7 Ave Pounds (x 1k) of Hazardous Waste 4.0% ≤39.48K ≤40.09K ≤40.66K 40.70K ≥40.74K ≥42.74K A7 WSS – Supervisory Communication by 2% 1.0% 97% 95% 83% 81% 80% 75% A7 WSS – ESI Survey Score of 80% (Baseline = 77%) 1.0% 90% 85% 80% 77% 75% 70% A7 WSS – Each Manager to Conduct One Roundtable/Qtr 1.0% 115% 110% 105% 100% 95% 90% A5 (d) No Major Findings on 2002 SHEA Audit 4.0% 0 MgtSys < 1 Med 1 Med process 0 Sig ≥1 Sig Strengthen the Team SHEA Balanced Scorecard (Blue Highlights SHEA 2002 Performance)
  • 34. 2401 East Wardlow Road, Long Beach, California 90807