Continuing the journey of… Making Zero Accidents a Reality — Focusing on Shutdowns, Outages, and Turnarounds John Mathis Bechtel Corporation

Zero Accidents/Shutdowns Project Team Mike Cain Lockwood Greene Dennis Cobb DuPont Paul DeForge Ontario Power Generation P. D. Frey Austin Industries John A. Gambatese Oregon State University Tom Hardesty Celanese Acetate Jimmie W. Hinze University of Florida John J. Mathis Bechtel Corporation, Chair Randy Marconnet Watkins Engineering & Constructors Michael F. Schwimmer ChevronTexaco Gary L. Wilson NCCER

Continuing the Journey CII Project Team – “Making Zero Accidents a Reality” CII Project Team – “Making Zero Accidents a Reality – Focusing on Shutdowns, Outages, and Turnarounds” CII Project Team - “Owners Influence Over Contractor Safety Performance”

Objectives Provide construction industry performance update Recap 2001 study, “Making Zero Injuries A Reality” Identify unique nature of shutdowns, outages, and turnarounds Share research methodology Review and summarize key findings Provide details of Implementation Session

CII OSHA Recordable Performance 1993-2000 16 14.30 14.20 14 13.00 13.10 12.20 Industry 11.80 12 10.60 9.90 9.50 10 8.80 Est. 7.71 8.21 Recordable Incidence Rate 8 7.19 6.12 6 5.32 CII 4.31 3.44 4 3.00 2.66 2.30 1.60 1.59 1.67 2 1.03 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 325 413 477 497 527 613 644 770 518 765 995 936 Year and Work-hours (MM) Note: Industry based on OSHA SIC 15–17

Recap of “Making Zero Accidents a Reality” Getting to Zero Demonstrated management commitment Staffing for safety Safety planning — pre-project/pre-task Safety training and education Worker involvement and participation Recognition and rewards Subcontractor management Accident and incident reporting and investigation Drug and alcohol testing

Unique Nature of Shutdowns, Outages, and Turnarounds Rapid buildup of the work force Tight schedule Around-the-clock effort Special training considerations

Research Methodology — one study Forty-four projects involving shutdowns, outages, and turnarounds Detailed and personal interviews Jimmie Hinze (first slide) Our project team conducted Two separate studies. One was conducted with large construction firms and the second was conducted with large construction projects. The study of large construction firms consisted of a mailed survey that was sent to the ENR 400 or the largest 400 construction firms in the United States. Over 100 firms participated in this study.

Research Geographic area — across the United States Petrochemical Industrial Power Paper products Jimmie Hinze (first slide) Our project team conducted Two separate studies. One was conducted with large construction firms and the second was conducted with large construction projects. The study of large construction firms consisted of a mailed survey that was sent to the ENR 400 or the largest 400 construction firms in the United States. Over 100 firms participated in this study.

Safety Performance Firms that participated included some of the best safety performers in the construction industry OSHA Recordable Incidence Rate (RIR) of typical project — below 0.7

44 Construction Projects Safety Performance 44 Construction Projects 22 projects achieved zero OSHA recordable injuries 38 projects achieved zero lost-time injuries (pdeforge first slide) John: Paul, management commitment has been around since the time of the pyramids, what exactly are these slides telling us? Paul: John, you are correct and it’s a very good question. I will review only 3 of the findings that have a significant impact on improving RIR. I’m sure that if you were to ask any SVP/VP/Director or manager if they were committed to their safety program , the answer would be an emphatic “YES” However, John, the key word here is “DEMONSTRATED” The data here shows that there is a significant improvement in the recordable injury rate in top performing companies that use “top management participation in the investigation of ALL recordable injuries. Their RIR is 1.2 The data further validates the finding where top management participation in recordable injury investigations is 50% or less. Their RIR 6.9 The importance here is the delta of 5,2

Focus of the Research What practices on shutdowns, outages, and turnarounds contribute most to improved safety performance?

Key Findings More than 20 key findings revealed companies utilizing these best practices have significantly lowered recordable incidence rates.

Key Research Areas People Resources Planning Scheduling Safety Contract Formation Strategy Support of CII’s Zero Accidents Findings

when does the hiring of workers begin? People Resourcing Prior to shutdown, when does the hiring of workers begin?

Where do workers come from? People Resourcing Where do workers come from? The original focus on injury investigation made no mention of management involvement. This slide reinforces Paul’s comments about top management’s commitment to safety, demonstrated by their participation in incident investigations.

Planning and Scheduling Was software used to schedule the project? Once a good site specific plan is in place it is time to move to the next step -- pre-task planning. To me this is one of the most important piece, if not the most important piece, of any safety process. Pre-task meetings should address the potential hazards associated with a specific task. If the conversation is not specific to the task to be done then it is not really a plan. And the best pre-task meetings involve a discussion between the supervisor and those who will perform the work. There must be a two way conversation. If there is no dialogue then the supervisor can't tell if an understanding has been reached. So, the bottom line around the overall "planning for safety" process is: 1) The more specific and detailed the site plan, the better your safety performance. 2) The more task specific and detailed the pre-task safety discussions are, the better your safety performance.

Planning and Scheduling What unit of time was used on project schedule? Opening: The next level of safety performance for our industry rest in the education and training of our greatest resource, our employees. Their acceptance and participation in this new safety culture requires the knowledge to perform at a successful level. The companies identified in this study that excelled, have developed a comprehensive safety education system that includes budgeting, regular on-going employee, supervisor & project manager education and toolbox or task training, all leading to a positive return on the training investment and improved safety performance. Slide 1: The impact of the inclusion of safety training as a line item within the budget is highlighted by this slide. The findings support the conclusion that when safety training is funded as part of the budget the results are a successful long-term accident prevention program. This clearly demonstrates management commitment and promotes employee involvement.

People Resourcing, Planning, and Scheduling Combined: worker familiarity and scheduling by the hour John: Randy, what is worker involvement and participation and does it really play a significant part in improving safety ? Randy: Worker involvement and participation can take many forms, such as: Employees being involved in site Safety committees Conducting Perception surveys Performing safety inspections and participating in behavior observation surveys. In fact since the 1993 CII study, the industry has made major steps in the delicate area of worker behavior assessment. Worker behavior is one of the most important aspects of project safety. With the strong link between the actions of workers and injuries, it’s important to focus more attention on those behaviors. Over half of the projects surveyed had a formal behavior-based safety program in place. The data showed that Projects with formal behavior-based safety programs in place generally had better safety records.

Planning and Scheduling Days worked each week John: Randy, what about recognition and rewards for workers, hasn’t there been a lot of controversy about them. What did the surveys show? Randy: Yes there has been, in-fact the research showed overall that a majority of the projects had some sort of recognition program and that the sites that had these programs had a higher incident rate than those who didn’t. The difference and improvement in incident rates was evident when we analyzed how the recognition programs were administered.

Planning and Scheduling Typical shutdown duration Subcontractor Management is a new high-impact area. Many of us have been involved in projects that put tremendous energy into prime contractor and direct hire safety while ignoring subcontractor safety planning or treating their safety programs as afterthoughts. When we do require site-specific safety plans from our subcontractors, we hurt fewer people than when we fail to require them.

Planning and Scheduling Combined: shutdown duration and days worked each week Subcontractor Management is a new high-impact area. Many of us have been involved in projects that put tremendous energy into prime contractor and direct hire safety while ignoring subcontractor safety planning or treating their safety programs as afterthoughts. When we do require site-specific safety plans from our subcontractors, we hurt fewer people than when we fail to require them.

Planning and Scheduling Crew size Front end loading for safety is as important as FEL for any other phase of a project. In fact, planning for safety was identified in the 1993 study as a best practice. Not surprisingly, our study revealed that the more tailored the plan, the more site specific the plan, the better you safety performance will be. You can see from this slide that the recordable rate for projects with safety plans, specific to the site, is pretty drastic compared to sites without a site specific plan. Think of it this way, the difference in these rates represents twenty-five more people injured on a 500 person site.

Safety Contract Strategy Shutdowns, Turnarounds and Outages with safety-incentivized contracts Front end loading for safety is as important as FEL for any other phase of a project. In fact, planning for safety was identified in the 1993 study as a best practice. Not surprisingly, our study revealed that the more tailored the plan, the more site specific the plan, the better you safety performance will be. You can see from this slide that the recordable rate for projects with safety plans, specific to the site, is pretty drastic compared to sites without a site specific plan. Think of it this way, the difference in these rates represents twenty-five more people injured on a 500 person site.

Implementation Session Detailed review and discussion of research findings Panel discussion with industry experts Four participants with a combined total of 117+ years of experience Q & A session Copy of research findings

Results of Implementing Best Practices 2.37 24 workers per 1000 0.79 0 workers per 1000 Exercise - 38 people from the audience stand up to use as an example during talking point. 0.00

Which Practice Is Most Important to Achieving Zero Accidents? The safety culture of a firm is evident in everything it does. We must be ever vigilant in our efforts as we strive for Zero Accidents. Show video.

Which Practice is the Most Important to Achieving Zero Accidents? Your Personal Actions Will Make a Difference… Be a Courageous Safety Leader