This interactive webinar will give you insights on: 1. Understanding the importance of having an EHS MIS to capture vital EHS data. 2. Analyzing the data to see if your changes are achieving results. 3. The importance of being “graphical” when reporting upwards in your organization. 4. Analyzing the data to predict when you may be out of compliance. 5. Learning four key Six Sigma quality tools to help analyze your EHS data. And more….

1. Using Six Sigma Tools to
Analyze EHS Performance
Metrics
May 22, 2014

2. Introductions
2
Moderator
Oneil Williams
Manager Strategic Accounts
ProcessMAP Corporation
Guest Speaker
Dean Rossi
President
Safety Culture Partners, LLC

3. Housekeeping Items
3
 Attendee microphones will be muted to prevent distractions
 Ensure you enter your audio pin if dialing in by telephone
 Submit questions at any time using the “Questions” tool
 Q&A session
 Anonymous polls
 Post-webinar survey
 Contact info

4. 4
ProcessMAP
Company
Overview

5. Company Overview
EXPERIENCE
13+Years of Innovation.
Continued Growth &
Long-Term Partnership
with Customers.
GLOBAL FOOTPRINT
World’s Leading
Companies Rely on
ProcessMAP in 90+
Countries.
INDUSTRY LEADER
World’s Leading Software
Platform for EHS,
Sustainability & Carbon
Management, and
Compliance & Learning.
5

6. ProcessMAP Purpose
6
We empower customers with information
to help them preserve the environment,
create a safe workplace and ensure the
well-being of their employees.
“We help remove the non-value added
administrative burden on EHS professionals.”

7. Platform Overview
Cloud/SaaS ModelIntegrated Platform Multiple Access Global Platform
• Comprehensive
Suite of Modules
• Built from ground-
up with customer
input
• Embedded
Analytics and
Reports
• Connectors to
Internal & External
Systems
• No CAPEX Cost with
‘Pay-per-Use’
benefits
• Predictable Annual
Cost
• Safe Harbor Certified
• Supports Multiple
Browsers
• Safe and encrypted
access over
Internet
• Mobile capabilities
• Designed for Global
Companies
• 22+ languages and
100+ currencies
• Currently used in
over 90+ countries
• Conversions from
Metric to English
units and vice-versa
ERP Scale Platform for EHS and Sustainability
7

8. Broad Industry Experience
8
Automotive Agribusiness Electric Utilities
Oil & Gas
Metals Mining
Retail/Distribution
Manufacturing
Pharma Transportation
Healthcare
Media

9. A Sample of Our Customer Base
9

10. Objectives of the Webinar
10
“Using Six Sigma Tools to Analyze EHS Performance Metrics”
• Understanding the importance of having an EHS MIS to
capture vital EHS data
• Analyzing the data to see if your changes are achieving
results
• The importance of being “graphical” when reporting upwards
in your organization
• Analyzing the data to predict when you may be out of
compliance
• Learning four key Six Sigma quality tools to help analyze your
EHS data

11. Dean Rossi’s
Bio
11

12. Featured Speaker
12
Dean Rossi
President and Owner, Safety Culture Partners LLC
 25 years of EHS experience at site, division, and corporate level
 Held multiple EHS positions at GE Plastics
 Past global EHS manager at Stanley Black & Decker
 Past global director of EHS for a division at Ingersoll-Rand
 Most recently, served as the VP, Global EHS at Exide Technologies
 BS in Industrial Hygiene from Purdue University
 MBA, Organizational Leadership & Mgmt Emphasis
 Six Sigma Black Belt

13. Using Six Sigma
Tools to Analyze
EHS
Performance
Metrics
13

14. 14
EHS Function Transformation – Maturity Curve
Transforming EHS Function from Chaos to World-Class

15. Polling Question
15
What is your familiarity with ‘Six
Sigma’?
 Not Familiar
 Familiar with ‘Six Sigma’
 Green-Belt Trained
 Black-Belt Trained
 Master Black-Belt Trained

16. Some Common Manufacturing EHS Questions & Statements
16
1. Senior leadership asked to see a control chart of our safety
incidents over the years.
2. Your VP Operations, asked if spending the time doing BBS
observations is worthwhile.
3. The city wants to lower your waste water effluent BOD limit from
325 mg/l to 275 mg/l; is that O.K.?
 Your VP of Operations asked
 How capable are we to achieve compliance at the new level?
 “If the city does continuous 24 hour monitoring at our
outfall, how long on average will it be before we are out of
compliance?”

17. Predictive Phase – One step closer to World-Class Performance
17
4 Tools that Every EHS Professional Needs to Master
1. Statistical Process Control (SPC)
Charts
• U – Charts (Safety Incidents)
• I & mR Charts (WWTP)
2. Pollution Prevention Device
Capability Analysis
• How capable are you to maintain
compliance?
3. Regression Analysis
• We changed “x” did “y” change?
4. Student t-test
• Test two populations before and after
changes

18. Polling Question
18
How do you convey critical EHS findings
and conclusions to Upper Management?
 Informal verbal communication
 Written communication with no data
 Written communication with data in
spreadsheet format
 Graphical presentation with detailed
analysis

19. What is this
19
Whisky, Jay Leno, Coca Cola, Cars, Taxi, JVC, Sbarro, Marquis, Buses,
People, Panasonic, Red Shoes, Paul Simon, Buildings, Helicopter,
Parachute, Tommy , Bright Lights, Night time, Street, Cross walks,
Tickets, Sheena Easton, 1964-1993

20. A Picture Speaks a Thousand Words
20
We need to learn to get “Graphical”!

21. Statistical Process Control Charts
21
• A graph used to study how a process changes over time
• Central line: Average, Upper line: Upper control limit and
Lower line: Lower control limit
• Lines determined from historical data
• Provides ability to draw conclusions about whether the
process variation is consistent (in control) or is
unpredictable (out of control, affected by special causes
of variation)
• I & mR Control charts for variable data used in pairs
• Top chart monitors the average, or the centering of the
distribution of data from the process while the Bottom
chart monitors the range, or the width of the distribution
• If your data were shots in target practice, the average is
where the shots are clustering, and the range is how
tightly they are clustered

22. Six Sigma Tools for EHS
• SPC Charts
– I & mR
• Plotting Workers’ Comp. data
• Waste water Effluent data
• Number of Injuries, BBS Observations etc.
– u Chart
• Safety Incident Rate data
– Attribute data with changing variable sample size like number of hours worked per month.
• Regression Analysis
– Used to determine relationship between two variables
• Ex. Impact of number of BBS observations on reduction of injury rates
• t-Test
– Used to determine if there is a statistical improvement after a change was made
• Ex. Did our injury rates/ Workers’ Comp Cost reduce after implementation of Ergonomics program
• Capability Analysis
– Used to determine how “capable” you are to stay within your permit limits
• Ex. City wants to reduce your waste water permit limits by 25%. Are you capable to stay in compliance?
22

23. Statistical Process Control Charts
23
Description: Individuals and Moving Range Chart (I&mR). Plots in a time
series. Shows where 99+% of your data should lie.

24. Statistical Process Control Charts
24
PPE Prgm Temp
EE
Prgm
Ergo
Prgm
BBS
Prgm

25. Statistical Process Control Charts
25
Description: I & mR Chart of rolling 12 month Workers’ Compensation Costs
before and after Implementation of an Ergonomics Program

26. Control Chart Examples
26
Control Chart Examples

27. Polling Question
27
How would you describe this process?
 Stable and in control
 Mean is below the permit limit
 Small degree of variation
 None of the above
 All the above

28. Control Chart Examples
28
Any concerns here?
Special cause variation

29. Control Chart Examples
29
What does this chart tell you?

30. Polling Question
30
What does this chart tell you?
 Nothing – There’s no problem here
 We’re OK – Those data points are not
normal
 This process normally runs above the
permit limit
 There are no special
cause variations here

31. Control Chart Examples
31
What happened?

32. Student t-test
32
• A method of testing hypotheses about the mean of a small sample
drawn from a normally distributed population when the
population standarddeviation is unknown
• Formulate a null hypothesis, which states that there is no effective
difference between the observed sample mean and the hypothesized
or stated population mean—i.e., that any measured difference is due
only to chance
In EHS, for example, the null hypothesis could be that implementing an ergonomics program has
had no effect on injury rates or workers’ compensation spend. In general, a t-test may be either
two-sided (also termed two-tailed), stating simply that the means are not equivalent, or one-
sided, specifying whether the observed mean is larger or smaller than the hypothesized mean.
The test statistic t is then calculated. If the observed t-statistic is more extreme than the critical
value determined by the appropriate reference distribution, the null hypothesis is rejected. The
appropriate reference distribution for the t-statistic is the t distribution. The critical value
depends on the significance level of the test (the probability of erroneously rejecting the null
hypothesis)

33. Injury Rate “t-test”
33
BeforeAfter
14
12
10
8
6
4
2
0
Block
TRIR
t-test of TRIR before and after Ergonomic Program initiative
P Value =
0.009
Injury Rate “t-test” before and after implementation of an Ergonomics Program
When the “p-value” is <0.05; then “Significant Change"
p=<0.009

34. 34
Regression Analysis
• Simple tool to use
• Can be done on excel
• Testing to see that when you changed “x” . . .
o X = anything i.e. flow, number of BBS
observations, chemical adds, etc.
• . . . That “y” changed positively or negatively
o Y = anything i.e. concentration, number of
injuries, ppm, etc.

35. 35
• You implemented a Behavioral Based Safety (BBS) program over a year
ago.
• The VP of Operations said she hasn’t seen any changes in the injury rates
since starting the BBS program.
• The VP of Operations said that it takes too much time to perform the BBS
observations and asked “can we cut the number of BBS observations by
50%?”
• How do you respond to her?
Regression Analysis - Example

36. BBS Observation Data
36
Month
# of Monthly BBS
Observations Monthly TRIR
Jan-12 150 4.75
Feb-12 250 3.60
Mar-12 200 3.85
Apr-12 425 1.65
May-12 375 2.45
Jun-12 400 2.00
Jul-12 125 6.00
Aug-12 410 1.85
Sep-12 250 5.25
Oct-12 355 2.95
Nov-12 180 4.85
Dec-12 150 5.50
Jan-13 425 2.25
Feb-13 365 1.85
Mar-13 420 1.75
Apr-13 400 1.65
May-13 575 1.30
Jun-13 500 0.85
Jul-13 600 0.25
Aug-13 450 1.35
Sep-13 380 1.85
Oct-13 425 1.10
Nov-13 225 4.10
Dec-13 285 2.15
Jan-14 450 1.25
Feb-14 380 1.50
Difficult to tell in a table
format.
Remember . . . “a picture
paints a thousand words”.

37. Let’s Plot the Data
37

38. Regression Analysis
38
Right click to add a “trend line”. Then click add the “R2” Equation.
When R2 values are <0.80; then there is NO statistical correlation between the “X” and
the “y”. When >0.80 then statistically significant.

39. Polling Question
39
Now that you’ve seen the data, what do
you tell to VP of Operations?
 Agree to 50% reduction
 Recommend that we continue as we are
 Recommend doing MORE observations

40. Capability Analysis
40
Let’s start by plotting the data in an I&mR chart. The permit limit for BOD at
this outfall is 325 mg/l.
May-09Mar-09Jan-09Nov-08Sep-08Jul-08May-08Mar-08Jan-08Nov-07
300
250
200
150
100
Date
IndividualValue
_
X=189.1
UCL=275.1
LCL=103.1
May-09Mar-09Jan-09Nov-08Sep-08Jul-08May-08Mar-08Jan-08Nov-07
120
90
60
30
0
Date
MovingRange
__
MR=32.3
UCL=105.7
LCL=0
6
55
1
I & mR Chart for BOD at Outfall #1
Permit Limit of 300 mg/L
Looks pretty good right? But how “capable” are we of staying in compliance?

41. Capability Analysis
41
Take all the data from the SPC charts along with the permit limits to run a
“capability analysis”
USL = Upper Spec Limit (Permit Limit). To calculate a “sigma value” take either the Cpk or
Ppk and multiple by 3. Here the sigma value = 1.48 X 3 = 4.4 Sigma.

42. What do the Sigma Levels Mean?
Sigma Level
Days between running
“out of compliance”
4.5 1,000
3.0 161
2.0 15
. . . if we took 24 hour composite samples on a daily basis . . .

43. Capability Analysis
43
What if the city wants to lower your permit limit from 325 to 275? What is
your capability at that point?
USL = Upper Spec Limit (Permit Limit). To calculate a “sigma value” take either the Cpk or
Ppk and multiple by 3. Here the sigma value = 0.92 X 3 = 2.8 Sigma

44. 44
WWTP Effluent Vital Few Sigma Levels
0.0
0.6 0.7 0.7
0.8
0.9 0.9
1.1
1.1
1.2
1.3 1.3 1.3
1.4 1.4 1.5 1.5 1.5 1.5
1.5
1.7
1.7 1.7
1.8 1.8 1.8 1.8
1.9 2.0
2.0 2.0 2.0 2.0
2.1
2.2 2.2 2.2
2.3
2.4
2.5
2.6 2.6 2.6
2.7
2.8 2.9 2.9 2.9 2.9
3.0
3.1
3.4 3.4
3.5
3.6 3.6
3.7 3.8
3.8 3.8
3.9 3.9 4.0
4.0 4.1
4.1
4.2
4.3
4.4
4.4
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
SF-BOD
SF-Phosphorus
Chihuahua-Hg
Chihuahua-COD
SF-Cr
Pecky-SO4-
EG-GWtransDichlor
Pecky-BOD5
Chihuahua-Detergents
Chihuahua-pHLow
EG-pHLow(City)
Chihuahua-BOD
Pecky-Tot.Solids(Bio.)
Chihuahua-Fl
EG-NCTemp.
Tupelo-Zn
Chihuahua-NH4
Chihuahua-SO4-
Chihuahua-TDS
SF-Temp.
Tupelo-Cd
Cheraw-Cr
Chihuahua-Oil&Grease
Chihuahua-N
EG-GWFlowinConduit
EG-NCpHHigh
Chihuahua-Phenols
Pecky-Tot.Dis.Solids
Cheraw-Ni
QP-pHHigh
Chihuahua-Sed.Sol.
Chihuahua-Elec.Cond.
Chihuahua-pHHigh
EG-pHHigh(City)
SF-pH
Pecky-NO3-
Pecky-Tot.Solids(Net.)
Chihuahua-Se
Hellaby-Flow
Chihuahua-TSS
Clinton-Zn
Tupelo-CN
Pecky-Tot.Cr(CrPlt.)
Pecky-COD(CrPlt.)
A'town-pH(A)
Chihuahua-PO4-
Dallas-pH
Pecky-Cr6+(CrPlt.)
Cinton-TotalOil&Grease
Pecky-pHHigh
Dallas-Ni
EG-Hg(City)
Pecky-pHLow
Pecky-Ni
Georgetown-Ni
Pecky-CR6+(Net.)
EG-Zn(City)
Cheraw-Zn
EG-NCpHLow
Puebla-Cd
Chatsworth-Au
Pecky-NH4+(Net.)
Chatsworth-Cu
Chihuahua-Be
EG-GWChloroethane
EG-TTO(City)
EG-GWVC
Chihuahua-Cd
Cheraw-BOD
Chihuahua-Cr
Sigma
Once every
3 days
Assuming composite 24 hour sampling every day, these sites'
constituents will have a permit exceedance on average . . .
Once every
15 days
Once every
161 days
Once every
1,000 days

45. Capability Analysis Summary
45
If you capture data and have a permit limit, you can
calculate your capability
oStorm Water
oWaste Water effluent constituents
Metals
BOD
COD
pH
Flow
Etc.
oFence line air monitors
oIndustrial Hygiene exposure monitoring
oDifferential pressure gauge readings

46. Conclusion
46
1
2
3
In order to bring true business value, you must be “predictive” to
become “preventative”. Using simple six sigma tools can assist
Don’t take “statements” and “tribal knowledge” as facts; show
me the data!
There are NO “silver bullets” to increase EHS performance that
builds business value; but there are many pieces of “silver shot”
In God we trust; all OTHERS bring DATA!

47. Polling Question
47
Does your company have a formal ‘Six
Sigma’ or Lean Six Sigma Program?
 Yes – I have not participated
 Yes – I have participated
 No – My company does not offer a Six
Sigma program

48. 48
1. If your company offers a six sigma
program sign up to be a green belt
2. Partner with your quality people, they
have the tools to assist you in evaluating
your data
3. Add value to your company – Being
“predictive” is the best way to be
“preventative”
4. If you are not using an EHS MIS to
capture your vital data you may be
missing out on opportunities to be
“predictive” and “preventative”.
Recommendations

49. Q&A
49

50. Thank You!
50
For questions about ProcessMAP’s
platform solution,
please direct inquiries to:
owilliams@processmap.com
To contact Dean Rossi, please forward
all inquiries to:
drossi@safetyculturepartners.com
1301 International Pkwy, Ste 160
Sunrise, FL 33323
Office: 954-515-5040
Email: info@processmap.com
Visit us at www.processmap.com