American Moving and Storage Association Conference October 9,

A Systematic Approach to CSA

WHAT IS YOUR ORGANIZATION DOING DIFFERENTLY SINCE CSA WAS INITIATED??? 3

Safety Statistics – Large Truck Fatalities YearNumber of Fatalities 20065, , ,675 33% less 27% less FMCSA wants to continue to see a decrease in fatalities 4

Safety Statistics – 2010 roadside inspections By:Number of Inspections Out of Service Rate Driver3,430,1565.0% Vehicle2,329,94121% 5

Warning Letters Issued YearNumber , , (Oct., 2011 to March, 2012) 12,699 Note * - based on closed enforcement cases 6

Compliance Reviews YearFullFocused , ,9903, (Oct., 2011 to March, 2012) 2,7164,133 Note * - based on closed enforcement cases 7

Today’s Objective Be introduced to a way to improve CSA scores in a simple and structured way Assess your company’s internal safety practices using our “CSA Risk Assessment Tool.” Be introduced to tools to systematically improve CSA scores and your safety management system in a proactive way. Be introduced to the Safety Management Cycle that can be used to continually improve CSA scores. 8

IMPACT OF CSA ON TRUCKLOAD INDUSTRY Increased number of motor carriers that could be shut down Large carriers will have resources to address scores and performance issues Greatest effect is to push drivers with poor safety records out of the market Increase competition for drivers with strong safety records 9

IMPACT OF CSA ON TRUCKLOAD INDUSTRY (cont.) Upward pressure on driver pay (3-5%) Continued tightening in driver availability Tighter truck load capacity and higher truck load rates CSA data to contribute to concern among shipper. Large shippers may begin to use CSA data to filter out carriers Source – North American Equity Research – JP Morgan May 10,

What has CSA Accomplished? Directly monitors the safety performance on a monthly basis Introduces a New Enforcement and Compliance Model Helps identify problem areas for the trucking company Helps identify problem drivers 11

Source: FMCSA Website 12

Source: FMCSA Website 13

Why Go Beyond CSA Scores? CSA scores are the result or output of how well you manage safety in your business – you need to look beyond the scores to see what is driving these results CSA scores are a result of those safety violations that are recorded during inspections and then entered into the MCMIS database The Safety Measurement System assessments are based on these safety violations If you are only reacting to individual CSA scores then you are operating in a reactive mode waiting for an incident or accident to occur to take action 14

What Does Going Beyond CSA Scores Involve? Not stopping at threshold levels for each of the BASICs Analyzing BASICs or Key Process categories further Strengthening components within the Safety Management Cycle Linking CSA results to your operation 15

Improving Beyond Thresholds Makes Good Business Sense Cost ($) BASICs Score Savings threshold your score -less repairs & breakdowns -less accidents -less delays 16

Proactive Preventing DOT Violations 17

Is This Your CSA Scores? 18

Is This Your CSA Scores? 19

Link CSA Results to Your Business Violation: Defective trailer lights Maintenance Training Safety Hiring ? ? ? ? 20

Getting Started Survey the Company’s CSA Risk Assessment 21

What is the intent of the CSA Risk Assessment™? To provide a simple assessment of a carrier’s safety management system To enhance the usefulness of the Safety Management Cycle as a mechanism for improving safety and CSA scores The use of Gap Analysis which is a tool that compares performance with potential performance. Where are we? 22

What Does the CSA Risk Assessment™ Consist of? It surveys a carrier’s safety practices It rates carrier performance around categories of the Safety Management Cycle The questions are by no means a definitive list of leading safety practices, rather they are a random list of practices to gauge in general the strength of a carrier’s safety program 23

Your CSA Risk Assessment™ is Determined from a List of 60 Questions 24

How the Results Are Presented? 1= never, 2=seldom, 3=sometimes, 4=often, 5=always 25

Strengthen Components within the Safety Management Cycle 26

BASICs Categories Unsafe Driving Fatigued Driving Driver Fitness Controlled Substances/Alcohol Vehicle Maintenance Cargo-Related Crash 27 You can address Your CSA Scores By Addressing the BASICS and Violations Associated with each.

MaintenanceMaintenance TrainingTraining CSA Scores can be addressed by looking at the departments / key processes in a trucking company that can impact safety 28

Key Processes/Activities 29 Maintenance Training Drivers Law Enforcement Cargo & Handling Third Party (OSHA) Orientation Payroll Purchasing Dispatch Accounting Consumers Service Centers Family Issues Shipping/Receiving Operations Human Resources Recruiting

How Does the Safety Management Cycle Help Improve Your CSA Scores? Place the safety Management Cycle over each BASICs category or Key Process/Department when analyzing scores or individual violations BASICs categories Safety Management Cycle 30

What is the Safety Management Cycle? Structured Investigative tool Auditors will use this model to determine problem areas Steps to implementing a safety management process Never ending process 31

What is the Intent of the Safety Management Cycle? To encourage carriers to operate more “compliantly” and “safely” To assist carriers in the identification of safety management controls To assist carriers in developing “corrective” and “preventive” actions based on high BASICs scores To assist carriers in developing “early warning signals” and intervention strategies for high BASICs scores 32

Using the Safety Management Cycle to Improve Departments/Key Processes To identify the “who” “what” “where” and “why” for the major departments/key processes in the organization To introduce a process for evaluating the effectiveness of carrier departments/key processes on a regular basis To demonstrate the interrelationship of company departments within the Safety Management Plan 33

Policies & Procedures 34

Definition – Policies & Procedures Policies and procedures are typically organized around a carrier’s core business processes such as safety, hiring, training and maintenance. A Policy is a guiding principle used to set direction. A procedure is a particular way to of accomplishing an activity or a process. A series of steps to be followed. 35

Example – Policies & Procedures 36

Tips – Policies & Procedures Tips for strengthening Policies and Procedures: 37 What should be done Who will do it When it will be done and in what sequence How it will be done What equipment, tools or materials will be used What forms or other documents will be used Will the process be Flow charted Signed, dated authority Definitions Referencing the Standards Quality Records Procedure Owner

Roles & Responsibilities 38

Roles & Responsibilities Discussion topics: Who is responsible for safety? Making roles and responsibilities known throughout the company Defining roles and responsibilities in your Safety Management System 39

Definition – Roles & Responsibilities Roles and responsibilities for safety are defined within the company’s core procedures. Roles and responsibilities are clearly and completely outlined in company job descriptions and appropriate training and evaluation is included 40

Review – Roles & Responsibilities 41

Qualifications & Hiring 42

Qualifications & Hiring Discussion topics: Defining the qualification and hiring activity The impact of qualification and hiring on CSA scores Key considerations in driver hiring 43

Definition – Qualification & Hiring Covers practices that are essential in qualifying and hiring drivers and other staff for key positions affecting safety These practices are identified in company procedures and are associated with specific job titles that have responsibilities for completing each practice. 44

Review – Qualifications & Hiring 45

Training & Communication 46

Definition – Training & Communication Evidence of a training schedule and attainment of minimum skill level for all safety related personnel is outlined in company procedures and achieved by all safety related personnel. Employees cannot be expected to properly perform their safety related responsibilities unless appropriate training has been provided and effective means for communicating safety related issues are in place. 47

Safety Management Cycle – Training & Communication Tips for strengthening Training & Communication: -Open Channels in organization -Varied Format -Frequency -Do you know your training needs? -Do you have a training schedule? -Is there a record of training? -Is the training short, concise and focused -One topic at a time – 4 to 7 minutes -Make sure they are tested with a minimum acceptable score 48

Four Basic Steps in the Training Process Establish a needs analysis: Why is training needed? What type of training is needed? When is the training needed? Who needs it and who will do the training? Develop the training programs and manuals: Covers Policies, Procedures or standards 49

Four Basic Steps in the Training Process Deliver the Training program: Designate the trainer. Method of training to be used- one on one, groups, workshops or web based. Evaluate the Training: Pre/post surveys Training documentation 50

Review – Training & Communication 51

Monitoring & Tracking 52

Monitoring & Tracking Discussion topics: Key measures for tracking safety Making use of CSA and EOBR data Auditing and measuring safety-related processes 53

Definition – Monitoring & Tracking This section deals with the feedback loop to the carrier and driver to monitor fleet safety. These activities, outlined in the procedures, contribute to the observation, supervision, review and measurement of activities related to the safety responsibilities of company personnel. 54

Review – Monitoring & Tracking 55

Meaningful Action 56

Meaningful Action Discussion topics: When is meaningful action warranted? Addressing CSA scores Taking proactive measures 57

Definition – Meaningful Action Relates to actions a carrier takes to address safety- related concerns and opportunities for strengthening overall safety performance. Included are actions taken for what has happened in order to make unsafe results of work acceptable and the identification of actions that prevent the recurrence of problem areas 58

Review – Meaningful Action 59

A Strong Safety Program 60 Policies and Procedures Roles and Responsibilities Qualifications and Hiring Training & Communication Monitoring & Tracking Meaningful Action

Workshop Agenda CSA Introduction and Update Benefits of Going Beyond CSA Scores The BASICs Drive the System The Safety Management Cycle is the Plan Getting Started – Survey Your Company’s CSA Risk Assessment™ Understanding the Safety Management Cycle -Are Key Policies and Procedures Written? -Have the Roles & Responsibilities for Safety Personnel Been Identified? -Are Qualification & Hiring Practices Clearly Defined? -Training & Communication – How, When and Where? -Monitoring & Tracking – You Can’t Inspect What You Don’t Inspect -Meaningful Action – Protecting your Safety Scores Putting it All Together in a Company Safety Plan 61

What Should Your Plan Include? Analyzing your CSA Risk Assessment™ Addressing known problems based on your CSA scores using the Safety Management Cycle Identifying immediate, short-term, and long-term activities for your plan Organizing yourself to put your plan in motion (objectives, responsibilities, timeline, resources, training) 62

Fleetmetrica Services Workshops (public and private) – “A Systematic Approach to CSA” Web-based tools to simplify safety-related activities - Web Based Training (training) - SafetyMonitor™ (monitoring) - SafetyDocs™ (documentation) Allan Hicks