1. The SRI Group Incorporated www.thesrigroup.com

2. Safety Consulting Firm based in Conroe, Texas 30 years of experience 600+ Safety Process Assessments Over 500 facilities throughout the world 29 VPP Sites Numerous Best in Class and Top Decile Clients The SRI Group

3. ASCO Air Products & Chemicals Air Liquide Albemarle Amerada Hess American Ref-Fuel BASF Baker Hughes Bayer BP Amoco Champion Technologies Chevron Texaco Chevron Phillips Conoco Phillips Degussa Dow Duke Energy Ethyl Exxon-Mobil Fermenta GenCorp General Chemical Goodyear Hughes Christensen Huntsman Chemical Honeywell Kronos Inc. Louisiana Pacific Lyondell Citgo Marathon Ashland Petroleum Merisol Motiva Murphy Oil NACCO NAPCO National Steel Nova Chemical Ohmstede Olin Brass OMNOVA Solution Phillips 66 Plastipack Schenectady International Shell Oil Sunoco Chemicals United Space Alliance USS Steel Valspar Westlake Group Client List

4. Asking the Right Questions

5. Take Time Take Time People get Defensive People get Defensive Teaching to the Test Teaching to the Test Differences of Opinion Differences of Opinion Accountability Accountability Little Changes Little Changes Audit Problems

6. Audit Defined Methodical Examination and Review to Review and Verify. Methodical Examination and Review to Review and Verify. Evaluation of a Person, Organization, System or Activity. Evaluation of a Person, Organization, System or Activity.

7. Improve Compliance Improve Compliance Reduce Risk Reduce Risk Best Practice Sharing Best Practice Sharing Keep the Boss Out of Jail Keep the Boss Out of Jail Audit Strengths

8. Asking the Wrong Questions

9. What they’re not Walkthroughs Walkthroughs Safety Inspections Safety Inspections Perception Survey Perception Survey

10. Audit Re-Defined Evaluation to Verify the Effectiveness of a Process, System or Activity

11. Ensure the current systems, procedures and activities are sufficient for the desired level of performance. Ensure current efforts are creating the desired outcomes and dynamics. Purpose

12. Proper Measurement Activities Activities Systems / Processes Systems / Processes Results Results

13. Input Measures People Systems Information Activity Output Outcomes INPUTS PROCESS ACTIVITIES RESULTS PERFORMANCE MEASURES Process Measures Result Measures Are We Doing Things Right? Are We Doing The Right Things? Measurement Measurement

14. Annual Process Assessment Manager’s Monthly Assessment Types of Audits

15. Annual Assessment Methods Work Site Reviews Work Site Reviews Interviews Interviews Documentation Reviews Documentation Reviews SME / Owner Presentations SME / Owner Presentations

16.  Completed on a monthly basis.  Pick 1 Team, Area or Department  Deep dive on 1 or more system, procedure or activity  Feedback both up and down Manager’s Assessment Protocol

17. Focus of the Assessments Structure Structure Ownership Ownership Capabilities Capabilities Effectiveness Effectiveness

18. Design Design Organization Organization Defined Exactly Defined Exactly Infrastructure Infrastructure Focus - Structure

19. Leadership Leadership Accountability Accountability Involvement Involvement Focus - Ownership

20. Skills Skills Expertise Expertise Willingness Willingness Focus - Capability

21. Results Results Dynamics Dynamics Synergy Synergy Culture Culture Focus - Effectiveness

22. General Information General Information Management Leadership Management Leadership Responsibility & Accountability Responsibility & Accountability Process Organization & Communication Process Organization & Communication Critical Systems Critical Systems Prevention Activities Prevention Activities Process Evaluation & Improvement Process Evaluation & Improvement Assessment Elements

23. Are we profitable ? Are we profitable ? Do we have the resources ? Do we have the resources ? What is the ultimate goal ? What is the ultimate goal ? What has to change and why ? What has to change and why ? What are the barriers to success ? What are the barriers to success ? Is our current effort comprehensive ? Is our current effort comprehensive ? What other systems can we leverage ? What other systems can we leverage ? General Information

24. Vision, Values and Policy Vision, Values and Policy Goals and Objectives Goals and Objectives Championing Championing Safe Operating Decisions Safe Operating Decisions Mentoring Mentoring MOC of Personnel MOC of Personnel Management Leadership

25. What matters most here XYZ ? What matters most here XYZ ? Do business ever conflict with safety ? Do business ever conflict with safety ? What is your personal involvement ? What is your personal involvement ? How are new members of the leadership team indoctrinated ? How are new members of the leadership team indoctrinated ? How are safety concerns incorporated into strategic planning goals ? How are safety concerns incorporated into strategic planning goals ? Management Leadership

26. Line Management Philosophy Line Management Philosophy Defined Roles and Responsibilities Defined Roles and Responsibilities Acceptance at Each Level Acceptance at Each Level Performance Appraisals Performance Appraisals Discipline Systems Discipline Systems Involvement Involvement Safety Responsibility

27. Are you held accountable for safety ? How ? Are you held accountable for safety ? How ? What are your specific safety responsibilities ? What are your specific safety responsibilities ? For what and how do you hold your subordinates accountable ? For what and how do you hold your subordinates accountable ? What are the consequences for non-compliance ? What are the consequences for non-compliance ? Are safety responsibilities additional to your real job ? Are safety responsibilities additional to your real job ? Safety Responsibility

28. Meeting and Communication Structure Meeting and Communication Structure Committees Committees Start of Shift Communication Start of Shift Communication Communication Efforts Communication Efforts Process Organization

29. How are important decisions communicated to you ? How are important decisions communicated to you ? Is safety covered in staff meetings or in dedicated safety meetings ? Is safety covered in staff meetings or in dedicated safety meetings ? Where are the gaps in our current communication effort ? Where are the gaps in our current communication effort ? Are Safety meetings used to manage all aspects of our safety effort ? Are Safety meetings used to manage all aspects of our safety effort ? Process Organization

30. Engineering Controls Engineering Controls Inspection Efforts Inspection Efforts Corrective Action Corrective Action Housekeeping Housekeeping Safe Work Conditions

31. How are corrective actions communicated ? How are corrective actions communicated ? How do you measure the appropriateness and effectiveness of hazard reviews ? How do you measure the appropriateness and effectiveness of hazard reviews ? What level of feedback are you given on capital projects ? What level of feedback are you given on capital projects ? What is inspected, How often and Why ? What is inspected, How often and Why ? How often are pre-use inspections completed ? How often are pre-use inspections completed ? Safe Work Conditions

32. HSE Procedures HSE Procedures Standard Operating Procedures Standard Operating Procedures Emergency Management Emergency Management Contractor Safety Contractor Safety Health and Hygiene Health and Hygiene Compliance Efforts Compliance Efforts Incident Investigation Incident Investigation Critical Systems

33. What % of the time do we follow procedures ? What % of the time do we follow procedures ? What would you do right now if we lost instrument air pressure ? What would you do right now if we lost instrument air pressure ? Are contractors following our procedures ? Are contractors following our procedures ? What % of minor injuries are reported ? What % of minor injuries are reported ? Are most investigation used to fact or fault ? Are most investigation used to fact or fault ? Critical Systems

34. Training Training Task Analysis Task Analysis Pre Work Evaluations Pre Work Evaluations Observations Observations Awareness Activities Awareness Activities Coaching Activities Coaching Activities Stewardship Stewardship Hazard Recognition Hazard Recognition APS / RCA APS / RCA Prevention Activities

35. Are we training new hires properly ? Are we training new hires properly ? Which job or task worries you most ? Which job or task worries you most ? What do you learn from your last observation ? What do you learn from your last observation ? When was the last time your supervisor talk to you about safety ? When was the last time your supervisor talk to you about safety ? What was the last improvement initiative concerned with ? Has it worked ? What was the last improvement initiative concerned with ? Has it worked ? Prevention Activities

36. Audits Audits Data Analysis and Usage Data Analysis and Usage Action Tracking Action Tracking Measurement Measurement Process Improvement

37. How do you know that you’re doing a good job ? How do you know that you’re doing a good job ? What data is reviewed in your last safety meeting and what did the group do in response ? What data is reviewed in your last safety meeting and what did the group do in response ? Are action items completed on time ? Are action items completed on time ? Process Improvement

38. King / Queen For The Day