Srinivasan Ramabhadran Global Leader Process ... - DuPont

Achieving and Sustaining Operational Excellence in Manufacturing: DuPont Approach

Srinivasan Ramabhadran Global Leader Process Safety & Risk Management Offerings DuPont Sustainable Solutions

Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.

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Safety is a DuPont Core Value

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Core values: Safety, ethics and respect for people and the environment

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$32 Billion revenue with 13 business units from electronics to plastics, paints and agricultural chemicals

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Over 175 operating facilities around the world

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Worldwide reputation for industrial safety

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DuPont applies a single PSM management system worldwide


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The Vision of DuPont To be the world’s most dynamic science company, creating sustainable solutions essential to a better, safer, healthier life for people everywhere.

We are a market-driven science company. Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.

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Mission:

Sustainable Growth The creation of shareholder and societal value while we reduce the environmental footprint* along the value chains in which we operate.

*All injuries, illnesses, incidents, waste, emissions, use of water and depletable forms of raw materials and energy.

ETHICS & SUSTAINABILITY Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.

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DuPont Sustainability Accomplishments Absolute Values

Achieve 5% ($50 Million USD) annual decrease in energy use, consistent with sustainability goals

Results 1990 - 2009 ¾ 19% decrease in energy use

Percent of 1990 (2004 for water)

Goal

160% 140%

Share price ($)

120%

Production Water Hazardous Waste Energy CO2 eq.

100% 80% 60% 40%

0%

¾ 20% increase in production

1990

¾ $5B in cost savings

1995

2000

2005

Energy Efficiency Initiatives Examples

Reduction 1990 - 2009 Air Carcinogens U.S. TRI* “Releases” Air Toxics

100$

20%

92% 77% 75%

9 9 9 9 9 9 9 9

Integrated load controls Utilize Vented H2 in CB Boiler Improve Condensate Return Reduce Liquid Nitrogen Usage Steam Trap Maintenance Cooling Tower Water Temperatures Monitoring & Targeting Mindset and Behaviors…

* TRI = Toxic Release Inventory Sources: DuPont Global Reporting Initiative (GRI) report, Yahoo Finance


2009

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DuPont Approach Major Shift in Leadership Thinking Sustainable growth is rooted in core values, driven by leadership commitment, aligned with business objectives, and embedded throughout the organization and culture. Corporate Core Values

To here

Strategy & Roadmap

To here

Shift emphasis from here

Operations Efficiency

Integrated Management Systems

Growth & Innovation

Compliance & Reporting Initiatives


Culture & Processes in Operations Management

Stakeholders Engagement

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Assets Management Integrated Production Systems Manufacturing Asset Managing Process

Plant Performance and Business Imperatives

DuPont Best DuPont Best Practices Practices Standard Standard Operational Operational Procedures Procedures

Technical Model

Operate to Plan Operate to Plan ( Capacity, ( Capacity, Productivity) Productivity) Maintenance Maintenance and Reliability and Reliability Supply Chain Supply Chain Manufacturing Manufacturing Technology Technology Small Project Small Project Implementation Implementation

Capabilities Engine

200 yrs of 200 yrs of Manufacturing Manufacturing Experience Experience DuET DuET Engg. COC – Engg. COC – M & R, Energy M & R, Energy Six Sigma Six Sigma Champions Champions Subject Matter Subject Matter Experts Experts

Mindsets and Behaviors

Technical Technical training training Continuous Continuous Learning Learning Environment Environment

Outcomes and Sustainable Improvements

Production Goals integrated with Sustainability Goals Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.

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Process Safety Management Defined Process Safety Management is the application of management systems and controls (standards, procedures, programs, audits, evaluations) to a manufacturing process in a way that process hazards (risks) are identified, understood and controlled so that the process related injuries and incidents are prevented. This requires a sustained effort by leadership at all levels.


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DuPont Process Safety Management Model


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PSM Leadership Model Cat A PSM Incidents Lagging Indicators

Cat B PSM Incidents Cat C PSM Incidents/Near misses/ Key Learnings

Leading Metrics

Metrics & Recommendations from Incidents , PHA & Audits Trained , Knowledgeable, Capable People in all roles Adequate resources Financial Support Knowledge Management

Leadership Safety Culture, Commitment, Accountability, Resources, Involvement Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.

Foundational

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Achieving Operational Excellence: Leadership driven

Overall “AS-IS” Position

Future “TO-BE” Objective

• Culture Maturity curve

Culture Maturity curve Objective

Executive Summary

Safety Focus Areas

• Key Risks • Gaps & best practices

(Safety elements, timing, milestones) Strategy

Detailed Analysis

Implementation Plan

• Findings • Focus Areas

Actions to upgrade upstream Safety operating model Detail


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Compliance assurance: Line Accountability

CSC Chair

Tasks & Deliverables • Visible program support • Strategic guidance, direction & objectives • Hold HSSE councils, Cross-sub working groups to commitments

Project Team` HSSE Experts Supporting Orgs Supporting

HSE Council

Cross-subsidiary working group

Workplace Safety Process Safety Contractor Safety Occupational Health

Implementing

Line organization

• Technical guidance • Feedback & testing • Ongoing support

Cross-sub working groups • Design & validate policies and processes • Develop rollout materials and plans • Manage implementation planning and execution • Ongoing performance monitoring • Process adjustment and refinement • Technical guidance • Feedback & testing

Environment Security


Project Team • Day-to-day management • Project communications • Information clearinghouse

Line Organization • Implement policies, procedures and processes • Ensure appropriate training and execution • Provide data to subcommittees for ongoing monitoring

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Practical approach to establish new practices and behaviors Experiential workshops: Formal classroom sessions focused on knowledge transfer & skill development related to skills needed to drive the change program. Sessions provide the conviction and motivation for the change program.

Practical Application: Skills transfer is tested and coaching is provided in the field

DuPont lead

Coaching

Practical Application client lead & Dupont support

Workshop 3

Practical Application

Workshop 2

Content Finalization through task teams

Workshop 1

Deliver Practical Application client lead & Dupont review

Coaching

Performance metrics to sustain change

Coaching

Top management involvement Transformation Content finalization through task teams: Development of best practice Management System and content.

Expert and Experiential coaching: On-the-job coaching to build capabilities and confidence to drive the change.

Performance metrics to sustain change: Selecting and implementing performance metrics with a focus on leading metrics to sustain the improvement initiatives.


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Focus on Execution is Key

Management Standards

Operational Discipline

x

Operational Excellence

=


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Operational Discipline Characteristics

PSRM Resources

Employee Involvement Organizational Pride Excellent Housekeeping

Leadership by Example Active Communications

OPERATIONAL EXCELLENCE

No Shortcuts

Practices = Procedures

Strong Teamwork Shared Values

Up-To-Date Documentation


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Leadership Responsibilities for Sustenance •

Leaders must have a clear vision of the ultimate goal of the company’s process safety management efforts

•

Leaders must set the goals and strategic objectives

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Leaders must insure sufficient, quality resources are dedicated to PSM system requirements

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Leaders must hold their line organization accountable for PSM implementation and results.

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Leaders must recognize and reward PSM accomplishments to drive continuous improvement

•

Leaders must lead…felt leadership


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Conclusion • Process Safety Management is the way to deal with the most serious and challenging business risks to achieve operational excellence • Structured and systematic managing processes and systems, high standards of performance, tracking results of key metrics and audit will help sustain operational excellence • It provides an opportunity to prevent a catastrophic incident from occurring • PSM. Live it. Lead it.


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www.sustainablesolutions.dupont.com


Srinivasan Ramabhadran Global Leader Process ... - DuPont

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