1. Forensic Audits of Your QEHS Management System

2. © 2006 ABS Consulting, Inc.

3. ABS Consulting Services Design Verification Loss Modeling Env., Health & Safety Inspection/ Certification Asset Integrity Extremely Hazardous Materials Risk PlanningOperational SupportBundled Services Nuclear Chemical Weapons Explosives Lower Costs Extend Asset Life Accredited Certification Private Certification Monitoring Programs Damage Assessment 2 nd & 3 rd Party Audits Standards Development Training Procedure Writing Verification Emergency Planning Assessments Mechanical Failure Seismic Flood Fire Wind Financial Impact Software Modeling To Standards Fitness Assessment Owners Rep Retrofits

5. Is your organization realizing the value you expect from your management system? Management systems are time-consuming & expensive; organizations have a right to expect a return for these expenditures Organizations should expect to capture tremendous, tangible value from the effective application of management systems ROI & Management Systems

6. Do I need a forensic approach? QEHS Management System Questions: –Management system –Internal auditors –Questions –Tools in use

7. Who are the customers of a QEHS forensic audit?

8. Is your management system:  In decline – performance-wise?  Stagnating?  Stalled – gone into ‘limbo’ or ‘la-la land’?  Piling up a corrective action list?

9. Are the internal auditors:  Gravitating to their ‘comfort’ zones?  Penetrating deep enough into issues?  Providing usable & accurate information?  Slid into a ‘routine’

10. Are the right questions being asked?  Penetrating  May cause controversy  May stimulate emotion  Require ‘absolutes’ in the response

11. Are the right tools being employed?  Incident Investigation  Root Cause Analysis (RCA)  Meaningful measures, including what is being measured – for informed decision making  Are the tools being used correctly?

12. If you said “no” to any of the previous questions:  A forensic audit may be needed  A change in audit staff may be needed  An ‘outsider’ may need to be used  A new approach may need to be developed

13. Areas of weakness in a QEHS MS Typical areas prone to dying off is not used or stimulated internally: –Quality MS –Environmental MS –Health and Safety MS –Integrated MS

14. Quality Management Principles 1.Customer Focus 2.Leadership 3.Involvement of People – Resource Management 4.Process Approach – Product Realization 5.System Approach – Cause Analysis 6.Continual Improvement 7.Factual Approach to Decision Making – Monitor, Measure, Analyze 8.Mutually Beneficial Supplier Relationship

15. EXPECTED SERVICE by the Customer PLANNED SERVICE by the Company PRODUCED SERVICE by the Company PERCEIVED SERVICE by the Customer Monitor & Measure Company Performance Monitor & Measure Customer Satisfaction The Loop

16. If your customer is:Then your customer: DissatisfiedHas probably left forever Marginally satisfiedIs casual (any supplier will do) Basically satisfiedIs borderline or uncommitted Very satisfiedIs a return customer i.e. retained Extremely satisfiedIs loyal, appreciates your work, tells others, and tolerates a rare mistake Customer Retention Levels

17. EHS ELEMENTS EHS management system elements: 4.1 General requirements 4.2 EHS policy & commitment 4.3 Planning 4.3.1 Environmental aspects & Hazard ID 4.3.2 Legal and other requirements 4.3.3 Objectives, targets and programs

19. Hazard Identification Use a matrix to record the results Method People Location Source of Harm? Who/what Harmed? How Harm Occurs? Any positive answer means a hazard exists

20. EHS ELEMENTS 4.4 Implementation and operation 4.4.1 Resources, roles, responsibility and authority 4.4.2 Competence, training and awareness 4.4.3 Communication & Consultation 4.4.4 Documentation 4.4.5 Control of documents 4.4.6 Operational control 4.4.7 Emergency preparedness and response

21. EHS ELEMENTS 4.5 Checking 4.5.1 Monitoring and measurement 4.5.2 Evaluation of compliance 4.5.3 Nonconformity, corrective and preventive action 4.5.4 Control of records 4.5.5 Internal audit 4.6 Management review

22. Integrated Forensic Approach Risk assessment - equally addresses safety risks, environmental impacts and process failures Regulations management - have captured regulations for quality, environment, health, safety, security, etc and outlined/mapped their impact on the QEHS MS The integrated approach makes it easier to compare risks occurring in different parts of the business

23. Cross-Functional Team Review: Quality, Design, Facilities, Health, Safety, Environment, Security, Purchasing, Warehouse, Production Common MS Elements Common Procedures Defined by Users Owned by Supervisors Manage Core Business Processes Enabling Tool t Logistics Concerns Environmental Concerns Health Concerns Safety Concerns Technical Specifications & References Process Definitions Productivity Energy Reduction Incident Rates Illness Rates Customer Satisfaction Key Business Questions Key Processes Drive the Business Measurement Criteria Sample Measures Risk Mitigation QEH&S Improvements Efficiency Improvements Compliance Burdens Facility and Equipment Concerns EnvironmentHealth & Safety Business Needs & Continual Improvement Quality Integrated QEH&S

24. Thanks for your attention Eliminating/Minimizing Risk; Preserving the Environment; Providing Quality Products/Services; Having a Safe Work Place; and Protecting Employee’s Health is Everybody’s Job

25. Ron Henderson Manager, EH&S Training and Management Systems (281) 673-2816 rhenderson@absconsulting.com