1. ISM Best Practices Aurora, CO Dave Jackson September 2006 Dashboards and Control Charts

2. 2 The Hanford Site

3. Dashboards and Control Charts3 Introduction Fluor is making use of Leading Indicators in conjunction with Human Performance to perform work safely at the Department of Energy Hanford site Fluor is a leader in DOE’s Voluntary Protection Program Fluor has achieved significant safety improvements – 84% reduction in OSHA case rate from 1996 to 2005 Use of leading indicators started in May 2004, since then we have achieved a 28% reduction of injuries

4. Dashboards and Control Charts4 Introduction A conjunction of “Hard Side” and “Soft Side” at Fluor Leading Indicators Statistical Process Control (SPC) Safety Inspections Hazard Controls Leadership Employee Involvement Union Safety Reps Safety Councils (ZAC) Open Door ISMS and Systems Thinking TechnologyPsychology

5. Dashboards and Control Charts5 Voluntary Protection Program Fluor is the leader in DOE’s VPP Program –8 STAR Sites Simply complying with regulations is not sufficient for continual improvement VPP has helped to focus management and union efforts and teaming Leading Indicators fit in with worksite analysis

6. Dashboards and Control Charts6 Results

7. Dashboards and Control Charts7 Numerical Tools Use of Leading Indicators and Statistical Process Control has had a profound effect at Fluor Increases visibility to safety and production processes Helps to point the leaders in the correct direction to find improvement The Workers do understand the data – they live the data! Integration of data and numbers with people

8. Dashboards and Control Charts8 Great improvement July 2004 – February 2005 !!! Alas, something obviously has gone wrong in March. We jumped from 3 injuries to 13. The injury rate increased more than 400%! Use (and Misuse) of Data

9. Dashboards and Control Charts9 Addition of a 12 month moving average shows us we are actually improving! Or are we? Moving Averages

10. Dashboards and Control Charts10 A moving average simply compares the new datum point to the oldest. If the new point is higher, the moving average moves up; if lower, the moving average moves down. There is no criteria for when to declare a trend, when to sound the alarm The Hazards of Moving Averages

11. Dashboards and Control Charts11 Addition of Color Coding

12. Dashboards and Control Charts12 The traditional color coded charts against numerical targets adds to the reaction to random noise Although we now have an alarm threshold, there are a high rate of false alarms against arbitrary thresholds The Hazards of Rainbow Charts

13. Dashboards and Control Charts13 Common Trending Errors ErrorTypical Behavior ReactionAction Reacting to Ups and Downs (False Alarms) Comparisons point to point, to average, to last year Tampering and knee jerk reactions, frustration When stable, work on long term history, fix the system Failure to detect trend No criteria to separate trend from noise Molehill grows into mountain Use SPC to detect trends accurately and in time

14. Dashboards and Control Charts14 Statistical Process Control

15. Dashboards and Control Charts15 SPC Description Data are plotted in time sequence Baseline average (center line) is added Upper and Lower Control Limits are added, 3 standard deviations above and below the average UCL and LCL represent the expected range of variation in the data. Variation outside this range is circled (other rules are used in addition) See the “Hanford Trending Primer” at http://www.hanford.gov/safety/vpp/trend.htm. http://www.hanford.gov/safety/vpp/trend.htm

16. Dashboards and Control Charts16 Technology and Psychology Even the most elegant charts and analysis will not cause something to happen Decisions and implementation made without data are likely to fail We must integrate Technology and Psychology Integrate the alphabet soup of programs and the data with the people

17. Dashboards and Control Charts17 Systems Thinking Concepts Pay attention to interactions more so than components (People to People, People to Machine) Knowledge of statistical variation more so than discrete numbers Long term focus more so than short term Cooperation more so than fear, blame and internal competition

18. Dashboards and Control Charts18 Jump Start with Leading Indicators Just what are leading indicators, anyway? Predictions of future? or A means to create a better future?

19. Dashboards and Control Charts19 Creating a Better Future We have gotten distracted by calls to predict future, delaying development of leading indicators At a low injury rate, little information exists in the outcome indicators Trending response time long at these low rates Use leading indicators to measure lower threshold data and activities Quickens trend response, reduces injuries and improves outcomes

20. Dashboards and Control Charts20 Leadership is Needed The control chart will help characterize the data. Many times the data “will cry out” for action to be taken. Leaders at all levels in the corporation must be willing to hear the cry, formulate the appropriate action, take the action, and determine the effect of the action.

21. Dashboards and Control Charts21 Our Current Leading Indicators Events - First Aid Cases, Occurrences, Near Misses Safety Inspections - Number and Score Employee Input – Safety Concerns and Survey Responses Senior Management reviews weekly, and published by Project in Fluorboard

22. Dashboards and Control Charts22 Events

23. Dashboards and Control Charts23 Safety Inspections

24. Dashboards and Control Charts24 Employee Sentiment

25. Dashboards and Control Charts25 Results There have been recent trends that allowed management to stay ahead of issues OSHA Recordable Case Rate has dropped 28% since start of use (May 03 – Apr 04 compared to Feb 05 – Jan 06) Finished 2005 with lowest OSHA Recordable Case Rate yet Allows focus on doing the right things right

26. Dashboards and Control Charts26 Correlations Note: Black line is OSHA Case Rate, Green line is the Leading Indicators

27. Dashboards and Control Charts27 Correlations

28. Dashboards and Control Charts28 A Color-Coded Dashboard Integrated presentation for Leading and Lagging Indicators Combines the best of “balanced scorecard” with the best of SPC Better than rolling all data into one index Allows a Systems Approach – looking across several indicators

29. Dashboards and Control Charts29 Red Yellow and Green Control Chart Result DecisionColorLeadership Action StableLevel is Acceptable GreenStay the Course StableLevel is Not Acceptable YellowImprove System TrendAdverseRedCorrective Action TrendImprovingGreenReinforce – Stay the Course

30. Dashboards and Control Charts30 Use of “White” Addition of White to the dashboard can be advantageous: Use White (or Yellow) for one month away from a trend Use for stable at an okay level, but not superior Minimizes some of the push to be “All Green” while allowing for opportunities for improvement

31. Dashboards and Control Charts31

32. Dashboards and Control Charts32 Click to see First Aid Chart at PFP

33. Dashboards and Control Charts33 Increasing Trend at PFP, Red Circled

34. Dashboards and Control Charts34 Let’s look at CP D&D

35. Dashboards and Control Charts35

36. Dashboards and Control Charts36 What is the criteria for OSHA Recordable Case Rate? Click Here

37. Dashboards and Control Charts37

38. Dashboards and Control Charts38 Taking the Data to the People Senior Management receives weekly update of injuries and leading indicators President’s Zero Accident Council includes presentation on the statistics Project and Facility level charts are provided at least monthly Annual Employee training includes a safety culture survey

39. Dashboards and Control Charts39 Improvement Model Identify Trends and take appropriate actions When stable, determine if results need improvement Involve all Employees in improvement Use Pareto Charts and Histograms to help with improvement initiatives Publicize the results

40. Dashboards and Control Charts40 Conclusion Integrating tools and methodologies such as Statistical Process Control Systems Thinking Hazards Control and Leading indicators With the People and Human Performance Will lead to success.