Safety Budget Session 9

Safety Budget  The safety budget is used for funding all activities that make Safety Management System (SMS) reach the highest standard of safety. IATA Training & Development Institute 2

Safety Budget The four main safety activities that require funding:  Development of Safety Procedures  Training  Oversight  Managing Safety Database IATA Training & Development Institute 3

Safety Budget Development of Safety Procedures  Through reviewing and updating these procedures regularly for further improvement and making sure that they comply with safety standards. IATA Training & Development Institute 4

Safety Budget Training Suitable training must be provided to staff to enhance their awareness of the safety requirements. Depending on the nature of the task, the level of safety management training required will vary from general safety familiarization to expert level for safety specialists. IATA Training & Development Institute 5

Safety Budget Oversight  Funding for Monitoring safety performance and Performing safety audits to provide a better look at human performance errors, helping improve man - machine interactions to reduce the rates of accident and incident for the airline. IATA Training & Development Institute 6

Safety Budget Managing safety database  Improving safety depends heavily on the ability to collect and analyze safety data and to use that information to develop safer systems and take corrective actions before accidents occur. IATA Training & Development Institute 7

Safety Budget Approximate resources needed:  Definition of Standardday / participant  Project Specification3 man-days  Process Architecture5 day / participant  Safety Manual (or other manuals)100 man-days (per manual)  Implementation100 man-days  Evaluation15 man-days  Project management 10-50% FTE (full time equivalent)  Maintenance of the system IATA Training & Development Institute 8

Safety Budget Post-Implementation Costs  The Accountable Manager is occasionally involved in the Safety Management System.  Safety Manager – 50% of work-time.  Part-time or Full-time Inspectors and Auditors, pay and incentives.  IT Costs  Costs of Audits and Inspections  Costs of Accreditation (if required or desired)  Costs of maintaining Accreditation (if required or desired) IATA Training & Development Institute 9

Safety Budget Fixed Costs – Salaries and benefits – IT Costs – Office Space and associated utilities – Training Costs Variable Costs – Number of Safety Audits – Number of Safety Inspections – Hotel costs – Travel costs – Management time IATA Training & Development Institute 10

Workshop 7 Create Safety Budget for Your Airline