Asset Management Best Practices for Improving Health Safety

What is Health, Safety & Environment Management? The processes and programs organizations use to ensure the health and safety of: Employees Consumers Communities Environment caused by improperly managing the activities needed to develop, make and distribute products. © 2011 IBM Corporation

Corporate dynamics are driving Health, Safety & Environment needs Profitability & Productivity Making sure materials are under compliance, improving productivity and product quality Operating Costs Eliminating downtime caused by non-compliance, fines, accidents and/or safety incidents Capital Investments Considering regulatory requirements and overall health, safety, and environmental implications M&A, Divestitures, JV’s Implementing a health, safety & environmental system and processes that can change with the business Risk Avoiding fines, work stoppages, plant downtime, inventory losses, damaged reputations, supply chain disruptions © 2011 IBM Corporation

What are the HSE Business Drivers for Asset-Intensive Companies? Asset-intensive companies must: Provide safe and reliable operations Safety While: Supporting business growth, and Strengthening enterprise/operational risk management In addition, Risk Asset intensive companies are under increased pressure to: Control cost, Accurately track recordable injury data, Maintain easily accessible material hazard information, and Mitigate hazards HS&E administrators are looking to assure they are in compliance, and that their facilities meet complex regulatory reporting requirements Operations managers are looking to link Health, Safety and Environment information with plant asset information Compliance 4 © 2011 IBM Corporation

Are companies weighing in on the importance of Health, Safety & Environment ? You bet! ” Exxon. Mobil is committed to conducting business in a manner that protects and promotes the safety and health of our employees, those involved with our operations, and the communities where we work” As a health care company, Eli Lilly and Company is committed to the present and future well-being of people and the environment in which we live. Build health, safety, and environmental considerations into all phases of the business, including product and technology discovery and development, facility design, operation and maintenance, and product delivery “ ADM is committed to the safety of our colleagues, contractors, and business partners. ADM is also achieving notable gains in the area of Total Process Safety – the approach we take to help minimize the risk of incidents at our facilities” “ Our #1 priority – Be among the best industrial companies in safety by ensuring a safe and healthy work environment for our stakeholders” Source: Corporate websites © 2011 IBM Corporation

Maximo Health, Safety and Environment Management © 2011 IBM Corporation

What is Maximo Health, Safety and Environment Manager? Key Capabilities Incident Benefits Provides a central application for reporting all incidents spanning work, personnel, safety, health, and environmental areas. Management Investigations Supports all manner of investigations to analyze recurring incidents or defects when root cause analysis or after action review is required. Provides traceability into historical incidents, defects, work orders, earlier corrective actions. Change Full management of change process capabilities. Provides transparency and visibility across operations, safety, maintenance, and engineering domains of all types of changes, including safety plans, environmental controls, mechanical, operating procedures, and maintenance job plans. Management Non-Conformance Management Regulatory Provides non-conformance management capabilities designed to automate, manage, and streamline for identifying, evaluating, reviewing, and handling on non-conforming engineering specifications, materials, components, parts and processes. Identifies regulatory compliance against assets and locations and associates job plans and work orders to these regulations to ensure compliance – significantly reducing the costs associated with compliance Compliance © 2011 IBM Corporation

What is Maximo Health, Safety and Environment Manager? Capability Operating Benefit Capabilities for documented, step-by-step operating procedures Procedures Operating Governance application for structuring your operating policy Policy Risk Assessment Risk Matrix Improvements 8 Iterative document that links all associated Health, Safety and Environment activities and organizational data. Allows customers to analyze the risks associated with work carried out through the Maximo products, identifying hazards and defining the impact ranking An application that models both probability and consequences of events supporting risk management processes Manages continuous improvement programs like Six Sigma or similar methodologies © 2011 IBM Corporation

What is Maximo Health, Safety and Environment Manager? Capability Competency Management Operators Log Personnel Benefit Improves competency assurance through capabilities for adding, modifying, and updating competencies of the workforce Electronic log used by shift operators for recording and qualifying events which occur during an individuals shift watch Complete history of all personnel job roles, certifications, training and current qualifications Certification Tracking Action Tracking Benefits & Losses 9 Allows customers to track statutory implications to ensure certain types of work and actions are completed by the agreed dates Captures benefits/losses associated with improvements or costs associated with incidents, failures, survey/audit findings © 2011 IBM Corporation

What is Maximo Health, Safety and Environment Manager? Capability Failure Reporting Benefit Reporting mechanism for capturing metrics to support consistent Failure Reporting and Corrective Action process (FRACAS) Solutions Searchable learning repository associated with lessons learned, or with proven solutions having a safety, operational, maintenance or engineering context Defect Integrated approach to manage or eliminate defects Elimination 10 © 2011 IBM Corporation

A Solution Fit for Maximo IT-supported HSE/compliance processes – from IDC Manufacturing Insights’ Operations Technology Strategies – Technology Selection: Environment, Health, and Safety – A Necessary Foundation for Asset Oriented Manufacturers, August 2010. Maximo Health, Safety & Environment Manager Source: Technology Selection: Environment, Health, and Safety -A Necessary Foundation for Asset-Oriented Manufacturers August 2010 A central repository or database for all product compliance information and a global system of record, with an understanding of the history, quality, and context of that data. A foundational enterprise platform that provides a single view of your personnel, facilities, assets and operations. A rules or workflow-based system to ensure that procedures are followed, with the ability to identify specific events or exceptions. All records and applications can be related and linked to one another ensuring traceability and accurate auditing of event progression, including plans, decisions, approvals, implementations, and validations. Integration with other applications or data sources such as ERP or materials or order management. Maximo’s integrated business architecture and configurable workflow allows organizations to easily model their processes in accordance with organizational and regulatory needs versus a rigid software-driven process. Reporting or analytics. Maximo’s role-based Start Centers allow users to quickly personalize their information, publishing KPI’s, query-based charts & graphs, bulletin boards for work groups, or corporate communications. © 2011 IBM Corporation

Mosaic World’s leading producer of potash and phosphate Mosaic is helping the world grow the food it wants Business Challenges IBM Solution Business Benefits § Common Management of Change policy, procedure, program for the potash and phosphate business units – to support ISO 14000 certification § A common trading tool that enables and enforces Management of Change processes and procedures that are aligned with Mosaic’s standards § IBM Maximo § Achieved ISO 14000 certification § Installed a common tool to drive best practices and process standardization § Expanded Management of Change reach from equipment and facilities to supply chain and material § Established alignment with future Mosaic initiatives like reliability “A Key Solution for ISO 14000 certification” © 2011 IBM Corporation

Abu Dhabi Water & Electricity Authority Implementing government policy regarding water and electricity sector in the Emirate, including privatization of the water and electricity sector ADWEA is an water and electricity provider in Abu Dhabi, UAE Business Challenges IBM Solution Business Benefits § Lack of organizational efficiency and inability to prepare / respond to future challenges § Ability to meet a 9% growth rate for energy consumption § IBM Maximo § Incident Management § Management of Change § Action Tracking § Built end-to-end capacity, and optimized asset effectiveness to meet demand with a strong focus on financial, social and environmental sustainability § Streamlined operating processes that enabled the efficient delivery of high quality water and power while complying with Government HSE Management System Regulation & Supervision Bureau Framework HSE Incident Resolution APM MOC “A Key Element of Smart Initiatives” © 2011 IBM Corporation