CII Safety Symposium Behaviorial Safety A practitioner perspective

1. Heinrich's Accident Pyramid Reactive Fatal Major Injury Minor Injury Near Miss Unsafe Acts

2. What causes accidents? Behavioristic Causes Unsafe Personal Factors Copyright © 2012 Nat. Steel

Attitude Completes Gaps in SMS system helps to: § § Eliminate Unsafe Environmental Conditions. Upgrade Engineering Controls. Optimize Administrative Controls. Provide Adequate PPE BUT DOES NOT ALTER ATTITUDE! ATTITUDE DRIVES BEHAVIOUR Copyright © 2012 Nat. Steel Holdings Pte Ltd 4

Behavior §Observable Action § Safe Behavior § At-risk Behavior § Measurable §Causes most accidents

3. What is BBS? § Behavioral – Based Safety (BBS) is an injury prevention process § Focuses on at-risk behaviors that can lead to injury § Focuses on safe behaviors that can contribute to injury prevention Copyright © 2012 Nat. Steel Holdings Pte Ltd 6

3. What is BBS? There are 3 types of at-risk behavior: § Conscious behavior § Habitual behavior § Unintentional behavior BBS is about unintentional behavior and habitual behavior. To be more specific, it's about how to prevent mistakes or errors you never wanted to make in the first place. Copyright © 2012 Nat. Steel Holdings Pte Ltd 1 b 7

Application THE CONCEPTS OF BBS CAN BE APPLIED ANYWHERE!!! § While Driving § At

Behavioral Factors causing injury § Rushing § Frustration § Fatigue § Complacency Copyright ©

Critical Behavioral Errors § Eyes not on Task § Mind not on Task §

Deadly Combination Rushing Eyes not on Task Frustration Mind not on Task Fatigue Complacency

4. Why Implement BBS? § Safety is about people § Compliance to system is not sufficient to ensure injury-free workplace environment § Consequences drive behavior § Performance Feedback § Deep involvement & participation by all § Truly proactive § Proven effective § Build good safety culture Copyright © 2012 Nat. Steel Holdings Pte Ltd 12

Good BBS Program § Reduces injury and illness § Helps workers feel good about their work § Reduces workers’ compensation costs § Elevates SAFETY to a higher level of awareness Copyright © 2012 Nat. Steel Holdings Pte Ltd 13

BBS Implementation Success Factors § Management Commitment § Felt Leadership & Dedication § Personal

5. About Nat. Steel ■ A subsidiary of Tata Steel ■ Employs over 3, 500 employees ■ World leader in scrap management and melting operations China Wuxi NSX India NSV Thailand SIW Vietnam SAMC* Philippines Singapore NSH ■ World-class operations Steel Plant (EAF) ■ Industry leader in Safety, Health and Environmental practices Rolling Mill Downstream Fabrication Services BB / NSAU Australia Wires Tata Steel India * Minority share holding • ** Did not include Tata Steel Thailand (subsidiary of Tata Steel) Copyright © 2012 Nat. Steel Holdings Pte Ltd 15

Our Integrated Steelmaking Operations Producing green steel from recycling metal waste 1. Radiation detection and sorting of metal scrap 2. Steel production using world’s most energy efficient Electric Arc Furnace 4. World’s largest single fabrication facility for higher productivity for the construction industry. Fabricates 500, 000 mt of products per year, using state-ofthe-art technology to meet customers’ orders within 1 to 5 days: • Cut-And-Bend to fabricate bars • Mesh to weld and bend welded fabric reinforcement from wire rods • Caging assembles reinforcement bars and mesh into 3 -D cages Copyright © 2012 Nat. Steel Holdings Pte Ltd 3. Rolling mill benchmarked against global standards 1 16

6. Our Program - STOPTM § Start of Safety Excellence Journey in May 2008 § Implementation of Safety Training & Observation Program (STOP™) § BBS methodology § Empowerment of supervisors and employees § Strong communication between management and employees § Felt leadership, management commitment & role-modeling § Coverage at all site operations Copyright © 2012 Nat. Steel Holdings Pte Ltd STOP and the STOP™ logo are registered trademarks of E. I. du Pont de Nemours and Company (Du. Pont) 17

Involvement § STOP™ is a continuous program § Cascaded top-down to all levels achieve

Six Step Process A 6 -step process of interaction to cultivate safety awareness and positive behaviors. Step 1: Observation Step 2: Step 6: Thank the employee Comment on safe behavior Step 5: Discuss other safety issues Step 3: Discuss on unsafe behavior Step 4: Get agreement Copyright © 2012 Nat. Steel Holdings Pte Ltd The STOP™ observation process is the copyrighted material of Du. Pont. Used with permission of Du. Pont 19

Observation and feedback goals § Initiate dialogue § Create a situation where employees will consciously practice safe behaviors. § Reinforce safe behaviors. § Correct worker when at-risk behaviors are observed. § Through feedback look for the cause of at-risk behaviors; facility/equipment, disagreement, etc. Copyright © 2012 Nat. Steel Holdings Pte Ltd 20

BBS Implementation in NSH Training • Start from top management • Cascade to supervisors and workers Scheduling and Deployment • Schedule STOP™ observations • Done monthly or weekly with two-man team STOP™ observations • 6 categories • Tracked with database for analysis and identify problem areas Improvements Copyright © 2012 Nat. Steel Holdings Pte Ltd • Safety action plans to tackle problem areas The observation categories are the copyrighted material of Du. Pont. Used with permission of Du. Pont. 21

BBS Implementation in NSH 6 categories: § Reactions of people § Personal protective equipment § Position of people § Tools and equipment § Procedures § Orderliness Standards Copyright © 2012 Nat. Steel Holdings Pte Ltd The observation categories are the copyrighted material of Du. Pont. Used with permission of Du. Pont. 22

BBS Data Management Copyright © 2012 Nat. Steel Holdings Pte Ltd 23

BBS Data Management Department A observed to be the area that having highest unsafe

5 S Housekeeping § Safety action plan developed based on STOP™ observation data § One example is 5 S Housekeeping, to target ‘Orderliness’ § 5 different activities: • Sort • Set in Order • Shine • Sustain • Standardize § Achieve and sustain clean, neat and tidy workplace Copyright © 2012 Nat. Steel Holdings Pte Ltd 25

30 Days Clean Up Types of actions includes: • Rectification works • Disposal of old and unused equipments • Cleaning & painting, • Rearrangement of equipments and storage, • Renovation works and dust removals • Engineering control measures • And more. . . § Creates visible impact on the shop-floor Copyright © 2012 Nat. Steel Holdings Pte Ltd 26

30 Days Clean Up Link Bender Cutting Machine BEFORE Bending Machine AFTER Bending Machine

30 Days Clean Up Storage Area Workshop Storage area Parts Room BEFORE Workshop BEFORE

7. Roadmap Month 1: Leadership Alignment Month 2 to 5: Leadership Training Month 6 to 13: Achieving critical number Month 13 onwards: Training workers & contractors • Formed a Safety • Training of 15 • Cascade training to • Half-day training Observations and managers monthly 50 employees and for all ground Audit (SOA) safety (includes CEO & supervisory levels workers subcommittee to COO) monthly • Specific focus on oversee this • Created • Continuous growth objectives and STOP™ program observation of STOP™ awareness of frequency, and observers STOP™ schedule • Pair up of new • SOA subcommittee STOP™ champions tracks compliance with experienced schedule observers Copyright © 2012 Nat. Steel Holdings Pte Ltd areas, 29

8. Safety Performance § Significant safety improvements over past 4 years § Achieved through high compliance of actual vs planned in BBS schedule Loss Time Injury Frequency (LTIF) 12 10, 23 10 8 6 5, 88 4 2 1, 22 1, 32 0 FY 08 Copyright © 2012 Nat. Steel Holdings Pte Ltd FY 09 FY 10 FY 11 0, 6500000 002 FY 12 30

9. Summary § Low upfront costs of implementation § Use felt leadership to change safety mindset and culture § Significant safety ownership among all employees § BBS is one of our most important safety management tools Copyright © 2012 Nat. Steel Holdings Pte Ltd 31