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The Roadmap to a Best-In-Class Safety Strategy
- 1. THE ROADMAP TOA BEST-IN-CLASS SAFETY STRATEGY October 2014 Sponsored By:
- 2. 2 1-800-776-5545 KEVIN PROUTY Senior VP Research ABERDEEN GROUP MODERATOR 30 years experience in manufacturing, supply chain, and engineering. Industry Experience: • VP of Research, Enterprise Applications, Aberdeen • Sr Director, Manufacturing and Product Design, Aberdeen • Director of Manufacturing Solutions, Infor • Director of Manufacturing Solutions, Motorola • Sr Director, Automotive Research, Gartner • Sr Director, Manufacturing Research, AMR Research • General Supervisor/Plant Manager, Saint Gobain/Norton, Superabrasives • Various engineering positions at Norton and Morgan Construction/Siemens
- 3. 3 FEATURED SPEAKERS 1-800-776-5545 BEN ARCHIBALD CTO Remedy Interactive KEN COLONNA Director, Safety Services, West Leading Family Entertainment and Media Enterprise As the CTO and Co-Founder at Remedy Interactive, a leading provider of health and safety management software, Ben Archibald is responsible for product leadership and innovation. A thought leader in health & safety technology, Ben leverages 20 years of experience in the software industry to create unique products that focus on measurably improving the efficiency and impact of safety efforts, while fostering a culture of safety, across global organizations. As the Director of Safety Services, West, for a leading family entertainment and media enterprise, Ken leads a team of safety and health professionals that designs, implements and manages an integrated safety management system. With more than 30 years of safety-related experience and a diverse background in risk management, loss prevention and environmental sustainability, he has held leadership roles at several notable companies including The Quaker Oats Company, Coca-Cola Refreshments and Terminix International. Ken is affiliated with the American Society of Safety Engineers, the American Industrial Hygiene Association, and the National Safety Council, and serves on various boards and committees supporting Environmental Health & Safety.
- 4. 4 1-800-776-5545 Whatwe will discuss What it’s all about… How we analyze our research How we collect our research Setting the environment What companies are doing… Recommendations …
- 5. PRESSURES ACTIONS CAPABILITIESENABLERS 5 PACE: How we collect our research 1-800-776-5545 ! External and internal forces that impact an organization’s market position, competitiveness, or business operations. The strategic approaches that an organization takes in response to industry pressures. The business competencies (organization, process, etc…) required to execute corporate strategy. The key technology solutions required to support the organization’s business practices. What are Best-in-Class companies doing differently? What pitfalls are they avoiding? Why are they achieving greater success? What technologies and services are enabling them to succeed?
- 6. BIC: How weanalyze our research ABERDEEN MATURITY CLASS FRAMEWORK DEFINING THE BEST-IN-CLASS 6 1-800-776-5545 Selected Performance Criteria (KPI) Recordable Injury Frequency Rate Overall Equipment Effectiveness Un-Scheduled Asset Downtime Respondents - Top 20% - Middle 50% - Bottom 30% Respondents are scored individually across KPI Best-in-Class Industry Average Laggard TCO to manage safety systems
- 7. SAFETY MANAGEMENT PROCESSOVERVIEW 7 • Companies that automate safety processes have better safety and operational performance…adding analytics makes them even better • The analytics aligns with companies having solid continuous 1-800-776-5545 improvement capabilities • All companies are concerned with compliance, but leading companies tend to be focused on operational efficiency • Change management and risk management capabilities tend to be indicators of safety culture maturity • The most mature companies tend to perform better, automate safety processes, and use analytics as a continuous feedback loop
- 8. 8 TOP PRESSURESDRIVING 1-800-776-5545 MANUFACTURERS 38% 35% 42% 68% 0% 20% 40% 60% 80% The need to reduce costs The need to increase customer satisfaction The need to maximize productivity The need to ensure quality of finished products and reduce lead times Percentage of Respondents All Respondents Source: Aberdeen Group, October 2014
- 9. Ensure compliance withEH&S regulations Concern over the risk of an adverse event Reduce the risk of non-compliance (threat 9 PRESSURES DRIVING FOCUS ON SAFETY MANAGEMENT 1-800-776-5545 16% 26% 44% 65% 0% 20% 40% 60% 80% of brand damage if found to be non-compliant) Corporate sustainability mandates Percentage of Respondents, n = 187 All Respondents Source: Aberdeen Group, October 2014
- 10. LOOK…LEADING COMPANIES ALSOWORRY MORE ABOUT OPERATIONAL EFFICIENCY Ensure compliance with EH&S regulations Concern over the risk of an adverse event 10 BUT WHEN WE TAKE A CLOSER Best-in-Class Industry Average Laggards 1-800-776-5545 9% 6% 48% 67% 21% 15% 8% 41% 62% 17% 42% 54% 0% 10% 20% 30% 40% 50% 60% 70% 80% Reduce manufacturing cost Improve manufacturing efficiency Percentage of Respondents Source: Aberdeen Group, October 2014
- 11. 11 Business Capabilities:It’s about the business process as much as the system 1-800-776-5545 65% 59% 50% 50% 29% 30% 70% 62% 57% 80% 70% 60% 50% 40% 30% 20% 10% 0% Established cross-functional teams Business processes are standardized, auditable and transparent across all functional groups Standardized process established to share compliance information among employees, suppliers, customers and regulators Percentage of Respondents SMS No SMS SMS with Analytics Source: Aberdeen Group, October 2014
- 12. 12 EH&S Capabilities:Some specific things companies do in safety management 78% 75% 75% 71% 1-800-776-5545 53% 49% 44% 49% 90% 76% 71% 86% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Established a proactive risk assessment to mitigate adverse events in operations Standardized policies established to prevent business interruption due to an adverse event Adverse events are monitored and escalated in real time to decision-makers Established short-term and long-term goals for individual plants / facilities Percentage of Respondents SMS No SMS SMS with Analytics Source: Aberdeen Group, October 2014
- 13. CHANGE MANAGEMENT: AKEY COMPONENT FOR LOOKING AT MATURITY OF ANY ORGANIZATION 13 1-800-776-5545 84% 80% 81% 58% 49% 55% 53% 30% 84% 84% 76% 55% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Standardized process to formally request a change to operations Formal process to review and approve changes in operations Formal process to manage and communicate changes in operations Closed loop processes for change related tasks Percentage of Respondents SMS No SMS SMS with Analytics Source: Aberdeen Group, October 2014
- 14. 14 RISK MANAGEMENT:AGAIN, A VIEW SMS No SMS SMS with Analytics 45% 48% 1-800-776-5545 INTO MATURITY 48% 27% 23% 42% 0% 20% 40% 60% Risk Management is culturally driven Risk Management processes are integrated in all key organizational processes Percentage of Respondents Source: Aberdeen Group, October 2014
- 15. 15 ENABLERS :SOME SPECIFIC FUNCTIONS WHERE TECHNOLOGY 1-800-776-5545 PLAYS A ROLE 68% 62% 55% 44% 26% 21% 19% 11% 70% 65% 59% 54% 80% 70% 60% 50% 40% 30% 20% 10% 0% Document Management Reporting Tools Dashboards Advanced Analytics Percentage of Respondents SMS No SMS SMS with Analytics Source: Aberdeen Group, October 2014
- 16. 16 WHY DOTHEY USE ANALYTICS 1-800-776-5545 41% 30% 29% 5% 39% 34% 22% 16% 50% 46% 41% 13% 60% 50% 40% 30% 20% 10% 0% Simplify complex decision making across operations Transforming all kinds of data (content) into knowledge and new value Identify new trends through behavioral analysis Reuse data already collected Percentage of Respondents SMS No SMS SMS with Analytics Source: Aberdeen Group, October 2014
- 17. 17 1-800-776-5545 RECOMMENDATIONS… • Establish a solid continuous improvement program for safety management • Automate your JHA and incident management processes and collect the data • Use analytic techniques and tools to connect the JHA data with the incident data. Makes this a continuous improvement loop • Use these steps to get to a safety culture that is continuously improving like any other process in your operations
- 18. 18 Please submityour questions using the Q&A field on the top left of your screen. 1-800-776-5545 Q&A with Kevin, Ben, and Ken
- 19. THANKS FOR JOINING! For more information on this and other topics, please visit aberdeen.com
Editor's Notes
- #4 Bob Heaney is a seasoned professional with over 25 years of distinguished leadership experience in research, analysis, and advisory roles in Supply Chain Engineering. Bob’s coverage area within Aberdeen includes various elements of Supply Chain Execution (Transportation Management, Warehouse Management, Distributed Order Management and Supply Chain Visibility) An industry insider and internal advisor to company executives, Bob has been active in designing, reengineering, selling, and transforming the end-to-end supply chain for Fortune 500 companies.
- #7 Aberdeen Group focuses on delivering the right content to progress your buyer in their journey: -Discovery: where we have “problem”-focused, quick pieces for exploration -Consideration: where we focus on deeper pieces with solution-oriented insight -Evaluation: where we can help tee up a conversation with use-case stories and assessments