Edward McKeiver - Aurizon - An enterprise approach

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Edward McKeiver delivered the presentation at 2014 Major Rail Occurrence Forum (Derailments).

The RISSB Major Rail Occurrence Forum (Derailments) has been designed to build on and continue the analysis of major occurrence reports and to seek Industry learning from them. By reviewing major occurrence reports, Rail Organisations have the opportunity to learn from the lessons without having to suffer the same occurrence.

For more information about the event, please visit: http://www.informa.com.au/derailments14

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Edward McKeiver - Aurizon - An enterprise approach

  1. 1. An Enterprise Approach Edward McKeiver VP Service Delivery Coal Markets Aurizon 30th April, 2014 Sydney Harbour Marriot
  2. 2. Aurizon • Operations across all mainland States • 2,670km of track owned, managed and operated in Central Queensland • 267mtpa of volumes hauled in FY13 • ~7970 employees • $9.6bn of total assets • Market capitalisation of ~$8bn
  3. 3. Derailments – Situational Appraisal • FY12 – One derailment every 38hrs • 230 derailments (33 Mainline, 197 Yard) • A complex risk profile • Legacy infrastructure conditions • Human Factors (lapses, procedures not followed) • 67% on QR National Infrastructure, 33% on 3rd Party Infrastructure • Investigation ownership, reporting and analysis needs significant overhaul and improvement • 80% in Queensland including 55 wheel obstruction derailments
  4. 4. Focus • Enterprise problems require Enterprise solutions • Required a leadership paradigm shift in standards and expectations to drive cultural change • Derailments are not the norm or acceptable • A significant training exercise needed to be undertaken to heighten derailment risk awareness • Accountable Line Management needed support • Collaborative Leadership expected
  5. 5. Derailment Prevention Community of Competence (CoC) • Representatives from across the enterprise with a specialized focus and interest in preventing derailments (network) • Charter - To develop and foster best practice derailment prevention solutions and facilitate their implementation across Aurizon to eliminate derailments • New leadership • Appointment of a full time resource • Systematic approach and refocused enterprise strategy
  6. 6. Strategy – FY13 • 3 Core Areas • Improved collection and utilisation of data – critical in understanding the levers to drive future strategy • Uplift capability - investigative talent and derailment precursor awareness across the enterprise • Creation of safe operational yard infrastructure – high risk interventions in known “hot spots”
  7. 7. Data, Reporting and Analysis • Reinstatement and mandated requirement for detailed derailment reporting (Form 7) • Regular analysis of levers to drive strategy 123 77% 30 19% 4 2% 3 2% FY13- All Derailmentsby State QLD WA NSW VIC 230 115 160 0 50 100 150 200 250 FY12 Count FY13 Target FY13 Count FY13 - All Derailment Performance Total Linear (Total) Total FY12: 230 Total FY13: 160 Improvement 30.43% (Direct Count) 46.71% (Normalised Mtkm) Rate FY12: 7.81 Rate FY13: 4.16 129 53 12 5 17 14 64.5 26.5 6 2.5 8.5 7 82 37 14 10 12 5 0 20 40 60 80 100 120 140 Bulk Coal Rollingstock Network Intermodal IronOre FY13- All Derailment Performanceby Function FY12Count FY13Target FY13Count 10 8 8 7 6 6 4 4 4 4 4 4 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 0 2 4 6 8 10 12 FY13 - All Derailment Frequency by Location - Count > 1 Count of Location 103 out of 160 65% of Sample 110 41% 50 18% 45 17% 21 8% 14 5% 13 5% 9 3% 6 2% 2 1% FY13- All Basic Causation - All Levels Engineering Mental/psychological Job Factors Organisational Motivational/communication Physical/physiological Knowledge,skill and experience Management systems Abuse or misuse 24 40% 14 23% 14 23% 5 9% 3 5% FY13- Track, Roadbed,Structures ImmediateCausation Trackgeometry Points and Crossings Roadbed Rails, Joints, Fastenings, Sleepers Other Way and Structures
  8. 8. Capability Uplift • 60 Derailment Prevention Champions (DPC’s) trained across the enterprise • Systems approach including use of ICAM • Support investigators and line management to take proactive approach in derailment prevention • “Tools” deployed in strategic locations – quality investigations
  9. 9. Networking and the Learning Organisation
  10. 10. Enterprise Awareness • Intranet site with resources • “Toolbox Talks”” • Learning Packs • Video Resources • DPC SharePoint site • Awareness of every derailment • Shared reports for learning
  11. 11. Sharing the Learnings – Salmon Gums • Play Example of CoC Video
  12. 12. Infrastructure Interventions • Targeted interventions in known “hotspots” • Closure/removal of high risk locations • Investment to restore to standard • Townsville • $1.9M • 35 derailments down to 10 (FY13 compared to FY12)
  13. 13. Strategy – FY14
  14. 14. 3rd Party Engagement • Create tension and reinforce accountabilities • Collaborative approach including joint investigation
  15. 15. Best Practice Standards • Single Enterprise Standards (1/2 Distance Protection) • Standards as reference point for factual investigation • Support for National Standards, COP’s and Guidelines • Rail Welding and Rail Stress Management
  16. 16. Derailment Prevention Awareness Program • ½ day workshop for operational staff including leadership teams • Proactive approach to identification of derailment precursors • Engaging and gaining commitment • Rollingstock, infrastructure and human factor focus • 5% of “front line” trained to date
  17. 17. Other Strategic Initiatives • Establishment of Infrastructure Rail Management Team (“blue” roads) – “Whole of Life” asset management • Replacement of “sensitive” rollingstock – Minerva consists • Improved ballast wagon design • Wayside detection “supersites” and use of ACFM technology
  18. 18. Results – On Target FY14
  19. 19. Summary • Holistic enterprise/supply chain/industry approach required • Given human factors, engagement and leadership is paramount to drive change in the safety culture • Success is underpinned by activities aimed at becoming a “learning organisation” • Use Standards as a factual reference base. • Leverage Community - Collaborate to share, learn and grow. • Never stop asking “why?” (systems approach and basic causation) • Improved Safety/Stakeholder outcomes for all.
  20. 20. Questions Thank You The “Champions”

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