1 Industry Workshop, Portland, OR March 23, 2011 NATIONAL HELICOPTER INDUSTRY WORKSHOP Portland, OR 23 March 2011 Fred Brisbois Sikorsky Aircraft Corporation CO-CHAIR US JHSIT

2 Industry Workshop, Portland, OR March 23, 2011 IHST GOAL Reduce the worldwide helicopter accident rate by 80% by 2016! are critical to achieving success Reduce accidents…save lives!!!

3 Industry Workshop, Portland, OR March 23, 2011 Accident Rates Vary by Region of the World Civil registered helicopter accidents and flight hours from IHST data Pre-IHST ( ) accident rates vs thru February accident rates North America Pre: : 3.0 South America Pre: : 16.6 Europe Pre: : 2.7 Africa Pre: : 5.6 Asia Pre: : 5.5 Oceania Pre: : 10.1 Accuracy of flight hour exposure estimate improves every year. World Pre: Feb: 4.2 Accidents per 100K flt hrs 4 March 2011 Note: Few accidents in Jan/Feb Lowered rates except in South America.

4 Industry Workshop, Portland, OR March 23, 2011

5 Industry Workshop, Portland, OR March 23, 2011 Heli-Expo 2010 and IHSS 2010 In a ringing endorsement of the IHST safety initiative, the CEO’s of AgustaWestland, Bell Helicopter Textron, Eurocopter and Sikorsky Aircraft signed a joint letters captioned “A Call for Action by Helicopter Owners.” and “Ten Major Offshore Operators” signed a joint letter of commitment captioned “Call to Action by and for Offshore Helicopter 0perators” The letter calls upon “all those who operate our products to implement the safety enhancements recommended by the International Helicopter Safety Team (IHST).” The areas cited in the letters are the adoption of: –Safety Management Systems (SMS) –Improved Training –Use of advanced systems/equipment Flight data monitoring systems (FDM) Health monitoring systems (HUMS) –Use of mission-specific equipment Night vision goggles Avionics to avoid controlled flight into terrain –Strict compliance with manufacturer’s maintenance program –Cultural/Behavioural Change, and –Crew Resource Management (CRM) Program

6 Industry Workshop, Portland, OR March 23, ACCIDENTS ANALYZED 197 Accidents 174 Accidents 152 Accidents 37 Instructional / Training 29 Instructional / Training 28 Instructional / Training 176 pages 210 pages 184 pages

7 Industry Workshop, Portland, OR March 23, 2011 IHST TOOLKITS MAINTENANCE TOOLKIT MARCH 2011

8 Industry Workshop, Portland, OR March 23, 2011 IS IT MONDAY?…..

9 Industry Workshop, Portland, OR March 23, 2011 TOPIC OF THE DAY

10 Industry Workshop, Portland, OR March 23, 2011

11 Industry Workshop, Portland, OR March 23, 2011 SAFETY  Is the key to our future  It affects everything we do (SMS)  Every accident affects everyone

12 Industry Workshop, Portland, OR March 23, 2011 PRIORITIES SAFETY must be the highest priority MISSION relies on safety Every person in the organization is critical to preventing accidents

13 Industry Workshop, Portland, OR March 23, 2011 PRIMARY CAUSE FACTORS HUMAN MACHINE TIME ACCIDENT CAUSES

14 Industry Workshop, Portland, OR March 23, 2011 “Human beings by their very nature make mistakes; therefore, it is unreasonable to expect error-free human performance.” Shappell & Wiegmann, 1997 WE ARE ONLY HUMAN!

15 Industry Workshop, Portland, OR March 23, 2011 CAUSES OF HUMAN ERRORS Not following a procedure (violation) Follow an incorrect process. Forget to complete a procedure Skills and training related errors

16 Industry Workshop, Portland, OR March 23, 2011 COMMON MAINTENANCE ERRORS* Omission—forget a step, a part, etc. 56% Incorrect installation 30% Wrong part 8% Other (ground handling, etc.) 6% * Ref.: ICAO Human Factors Circular 12 - Human Factors in Aircraft Maintenance Digest

17 Industry Workshop, Portland, OR March 23, 2011 JHSAT YEAR 2000 ANALYSIS 57 recommendations to prevent accidents derived from analysis of data for 197 accidents 42% of the recommendations pertain to Safety Management Systems

18 Industry Workshop, Portland, OR March 23, 2011 SOLUTIONS Must be tailored to the operations

19 Industry Workshop, Portland, OR March 23, 2011 SOLUTIONS Must be data driven Know what you know Know what you don’t know Studies must generate ‘actionable’ information Plans must be executable

20 Industry Workshop, Portland, OR March 23, 2011 SAFETY PRINCIPLES 1.Always operate in the safest manner possible 2.Never take unnecessary risks 3.Safe does not mean risk free 4.Key to safety is the identification and management of risk 5.An absence of accidents does not necessarily equate to safety 6.Familiarity and prolonged exposure without an incident leads to a loss of appreciation of risk SMS EMBODIES ALL THESE PRINCIPLES ACROSS THE ENTIRE BUSINESS !

21 Industry Workshop, Portland, OR March 23, 2011 REDUCING THE ACCIDENT RATE 80% USING SMS TO IMPROVE PERFORMANCE Percent Occurrence Outcomes PerfectGoodOkay AwfulCatastrophic Real Good Not So Bad

22 Industry Workshop, Portland, OR March 23, 2011 SAEFTY MANAGEMENT SYSTEMS (SMS)

23 Industry Workshop, Portland, OR March 23, 2011 SMS DEFINED A system that enables the systematic management of safety throughout an organization A business-like approach to safety A systematic, explicit and comprehensive process for managing risks and Provides for goal-setting, planning and measuring performance.

24 Industry Workshop, Portland, OR March 23, 2011 BEWARE…ALLWAYS

25 Industry Workshop, Portland, OR March 23, 2011 A NEW & MODERN CULTURE X

26 Industry Workshop, Portland, OR March 23, 2011 THE PARADIGM “Safety people have their hearts in the right place but seldom understand true business objectives” Safety has the high moral ground No one can publicly disagree with what we represent But Safety people are seldom seen as true business partners Our requests are compared with competing business objectives We’re never seen as balancing Safety objectives with business reality We seldom make a credible business case

27 Industry Workshop, Portland, OR March 23, 2011 WHAT LANGUAGE DO YOU SPEAK?-OR-

28 Industry Workshop, Portland, OR March 23, 2011 METRICS USED BY CFO’s Metric% Time Used Internal Rate of Return75.6% Net Present Value74.9% Payback Period56.7% Discounted Payback Period29.5% Account Rate of Return30.3% Profitability Index11.9% Source: Graham, John R. and Harvey R. Campbell, “The Theory and Practice of Corporate Finance: Evidence from the Field”, Journal of Financial Economics 2001

29 Industry Workshop, Portland, OR March 23, 2011 FINANCIAL METRICS The financial metrics are built around the concept of the: $ Time Value of Money $ That is, a dollar today is worth more than a dollar tomorrow.

30 Industry Workshop, Portland, OR March 23, 2011 INFLATION AND DISCOUNTING Present Value An investment can be viewed in two ways—its future value or its present value. Future Value Inflation Discounting

31 Industry Workshop, Portland, OR March 23, 2011 ROI = Net Present Value Present Value of Project Cost ROI – WHAT IS SAFETY’s PAYBACK?

32 Industry Workshop, Portland, OR March 23, 2011 MANAGEMENT SYSTEM = SAFETY SYSTEM

33 Industry Workshop, Portland, OR March 23, 2011 WHAT DOES A SAFETY GUY KNOW ABOUT FINANCE?

34 Industry Workshop, Portland, OR March 23, 2011 ROHSEI Return on Health, Safety and Environmental Investment (ROHSEI) One Way To Change The Paradigm.

35 Industry Workshop, Portland, OR March 23, 2011 BRIDGING FINANCE & SAFETY Safety/Industrial Hygiene Accident rates Property loss Insurance premiums Fines and citations No. of people trained Exposure Assessments Near misses Behavioral Observations Audit findings ROHSEI Bridges the Gap Finance/Operations Earnings/EPS ROI Payback PVRR Internal Rate of Return Production rates Earnings/employee Net Present Value Cost Benefit BUSINESS TALKSAFETY TALK

36 Industry Workshop, Portland, OR March 23, 2011 ROHSEI APPLIED TO SMS 2. Double the cost to implement for aircaft valued 50% less

37 Industry Workshop, Portland, OR March 23, Pages 40 Pages 290 Pages FAA Order VS FAA Advisory Circular ICAO DOC 9859 AN/460

The SMS Table (Top View) External Audit Are policies, procedures, and organizations appropriate? External Audit Is there a safety culture? Is there adequate training & communication? External Audit Are identified hazards analyzed correctly? External Audit Are risk mitigations effective? When not, is the risk re-introduced into SRM for re-analysis? External Audit Are data sources accurate, complete and timely? External Audit Is there a Voluntary Reporting System? © 2006 The MITRE Corporation. All Rights Reserved. External Audit Are all hazards identified? External Audit Are risk mitigation strategies appropriate? Approved for Public Release; Distribution Unlimited 06-1

39 Industry Workshop, Portland, OR March 23, 2011 A ‘JUST’ CULTURE PROCESS (EXAMPLE)

40 Industry Workshop, Portland, OR March 23, 2011 IHST.ORG

41 Industry Workshop, Portland, OR March 23, 2011 SMS TOOLKIT – CHAPTER 1 Organization & Human Requirements Guidelines for using policies and procedures to achieve desired level of safety Policies Procedures Individual responsibilities Authority Safety Planning Exercise/Template

42 Industry Workshop, Portland, OR March 23, 2011 SMS TOOLKIT – CHAPTER 1 SMS Planning Exercise

43 Industry Workshop, Portland, OR March 23, 2011 Theories and philosophy behind core SMS elements in designing an effective SMS plan. Internal Evaluation tables from FAA SMS Program Office Assurance guide Safety culture assessment (adapted from Dr. James Reason) SMS TOOLKIT – CHAPTER 2 Safety Management System Elements

44 Industry Workshop, Portland, OR March 23, 2011 SMS TOOLKIT – CHAPTER 2 FAA SMS Program Office Assurance Guide

45 Industry Workshop, Portland, OR March 23, 2011 SMS TOOLKIT – CHAPTER 2 Safety Culture Assessment

46 Industry Workshop, Portland, OR March 23, 2011 Systematic guidelines to implement an SMS Checklist for SMS elements Phased implementation guidelines Planning & organization Reactive processes Proactive processes SMS TOOLKIT – CHAPTER 3 Guidelines To SMS Implementation

47 Industry Workshop, Portland, OR March 23, 2011 SMS TOOLKIT – CHAPTER 3 SMS Implementation Checklist

48 Industry Workshop, Portland, OR March 23, 2011 SMS TOOLKIT – CHAPTER 3 SMS Development Chart

49 Industry Workshop, Portland, OR March 23, 2011 Definition of terms Sample SMS program CD SMS TOOLKIT – CHAPTER 4 Resources for SMS Implementation

50 Industry Workshop, Portland, OR March 23, 2011 SEEKING THE RIGHT BALANCE

51 Industry Workshop, Portland, OR March 23, 2011 THE VISION …CAN BECOME A REALITY !!!!

52 Industry Workshop, Portland, OR March 23, 2011 GIT-R-DONE !!!! BE LIKE THE RABBIT NOT THE SNAKE!!

53 Industry Workshop, Portland, OR March 23, 2011 CONTACT INFO: Larry Buehler FAA Co-Chair Implementation Team ANALYSIS DATA: Scott T. Tyrrell FAA Co-Chair – Analysis Team Fred Brisbois Sikorsky Aircraft Corporation Co Chair Implementation Team IMPLEMENTATION: