PSM YH Moon IP Korea 24 November 2010

공정안전관리(PSM) 사례 YH Moon IP Korea 24 November 2010 For internal use only – not to be circulated outside Akzo. Nobel

Introduction • IP Korea • PSM Hazard study Permit to work • Safety culture • Questions For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

01 International Paint Korea ㈜아이피케이 ` For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

Worldwide 네트워크 Oslo Helsinki Bergen St. Petersburg Copenhagen Gothenburg Gdynia London Sassenheim Newcastle Moscow Rotterdam Le Havre Hamburg Vancouver Toulouse. Rijeka Odessa Bilbao Genoa Istanbul Barcelona Rome Varna Lisbon Limassol Piraeus Kuwait Bahrain Dammam Dubai Bombay Winnepeg Quebec Waukegan San Diego Union Houston Mexico City Miami Jeddah Maracaibo Vladivostok Seoul Tokyo Chilseo Busan Kobe Shanghai Hong Kaohsiung Bangkok Bangalore Ho Chi Minh Kuala Lumpur Johore Singapore Port Moresby Panama Jakarta Brisbane Johannesburg Rio de Janeiro Cape Town Durban Sao Paulo Perth Auckland Sydney Operations in 54 Countries 19 Manufacturing Locations For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

Safety is the same for everyone SAFETY is the same for everyone! For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

02 PSM Review(BI) For internal use only – not to be circulated outside Akzo. Nobel How sustainability is shaping our business Marine & Protective Coatings 1

Team Delivery Contract(팀원과 협의) 위험요소 제거를 위한 PSM 혁신활동 Version 1. 0 Sponsor 홍윤룡 Issue date 19/01/2010 Champion 천 무식 Ref Team Deliverables(목표) Due Status Ref 1 PSM보고서 보완계획 수립 1/26 G(동의 O) 5 2 각 항목 및 updating 2/28 G(동의 O) 6 3 PSM보고서 Review 3/15 G(동의 O) 7 4 PSM 관련 표준 개정 3/26 G(동의 O) 8 Team Deliverables(목표) Due Status Resource Plan Period(활동) Team Names Hours per week(주 활동 시간) Start End Max Min Ave 최병철/김상도 1/12 3/30 4 2 3 홍윤룡/천무식/ 강병구/김영기/ 문영훈/한경석 1/12 3/30 2 1 2. 5 Other Resource Cost 필요 시 KOSHA / 노동부 협의 Comments(기타사항) High Level Timeline, 2010 January Theme 선정 및 활동계획 수립 Done PSM Up-date 필요항목 파악 Done 항목별 Up-date 담당자 선정 Done PSM 항목별 Up-dating Progress February Progress For internal use only – not to be circulated outside Akzo. Nobel March Done Marine & Protective Coatings

공정위험성 평가(위험관리절차) Inputs 자산(설비) 투자품의 (SBP 080604) 설비정비 (SBP 050602) Outputs • Hazard review report 2. Major or Minor? 도면 관리 (SBP 050603) 4. Hazard Studies Task 설계의도 • AN HSE Manual • GN 16 Office fire detection and alarms • GN 26 Extraction standards • Dir 1 Vertical shaft guarding • GN 33 Code of practice for 3. Hazard Review 실시 1. 변경관리 대상 • HAZARD STUDY report • HAZOP 보고서 • TRA Report 도면 관리 (SBP 050603) 5. 시나리오 작성 6. 빈도 분석 7. 심각도 분석 자산(설비) 투자품의 (SBP 080604) hazard studies • GN 63 code of practice for Environmental protection • Design for human failure • P&ID • PFD • KOSHA Code * P-6 -2001 회분식공정의 HAZOP * P-9 -2000 ETA * P-3 -1998 What if 기법 * P-4 -2005 FTA * P-5 -2002 이상위험도 분석 * P-9 -1999 사고피해영향기법 HSE Planning (SBP 070103) 8. Risk Rating No 9. 수용가능. ? Yes HAZARD Study Team For internal use only – not to be circulated outside Akzo. Nobel SAFE Meeting (SBP 070105) 10. 개선 계획 수립 및 실행 FLT Committee (SBP 070702) 일상 업무 수행 Marine & Protective Coatings

Step 1 시나리오 작성 - Guideword 1 2 3 4 Guide Word 기계 접촉 회전하는 샤프트에 말려들어감 블레이드에 잘리거나 베이는 상해 Being struck by moving part (운동부분에 의한 충격) Being trapped by part (부품에 의한 말려듦) Struck by object (물체에 의한 충격) Objects falling or being thrown(낙하 비례물) 5 6 Struck by vehicle 7 운반차량에 의한 충격 8 9 Struck against (들이받는 위험) 10 Manual handling 11 (수작업 위험) 12 13 Slip/trip/fall (미끄러지고 걸려 넘 14 어지고 떨어지는 위험) 15 16 Fall from height(추락) 17 18 For internal use only – not to be circulated outside Akzo. Nobel Proximity to forklifts(지게차 접근) Roadways/access routes (통로/접근 경로) Use of hand operated forklifts( 손으로 조작하는 지게차) Protruding objects(튀어나온 물체) Overhead pipes(머리 위쪽 배관) Lifting/carrying/moving (들어올리기/옮기기/움직이기) Loading/charging/filling(하역/투입/포장) Steps/stairs (발판/계단) Broken floors (부러진 바닥) Poor visibility (시야 미확보) Ladders (사다리) Roof/platform access (지붕/ 플랫폼) Roller gates/handrails(롤러 게이트/핸드레일) Marine & Protective Coatings

Step 1 시나리오 작성 - Guideword 19 Contact with 20 electricity (전기 접촉) Guideword Damaged/frayed wiring(손상되거나 닳은 전기배선) Open cabinets/distribution boards (캐비닛/ 분기 보드 열림) 21 Contact with 22 chemicals 23 (화학물질 접촉) Use of PPE(개인보호구 사용) Leaking valve/pipes(밸브/배관 누출) Broken/faulty exhaust systems (부러지거나 불완전한 환기시스템) 24 25 26 Fire(화재) 27 28 29 30 31 32 Spills(유출) 33 Poor housekeeping(청결상태 불량) Personal hygiene(개인 건강관리) Uncovered containers/vessels(닫혀지지 않은 캔/탱크) Earthing straps(접지) Poorly maintained equipment(설비보전 불량) Non flameproof equipment(비방폭 기구) Build up of rubbish(쓰레기 산적) Spilled flammables(인화성물질의 유출) Leaking valves/pipes(밸브, 배관의 누출) Storage of stock(재고 보관) For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

Step 2 Frequency(빈도) 분석 　F Frequency/가능한 설비 고장이력이나 Human error 기록을 이 용한다. F 1 10, 000년에 1회 이하 발생 F 2 1, 000년에 1회 이하 발생 F 3 100년에 1회 이하 발생 F 4 10년에 1회 이하 발생 F 5 1년에 1회 이하 발생 F 6 년 1회 이상 For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

Step 4 Risk Rating(위험성) 결정 위험을 감소시키기 위한 수단이나 장치를 고려하지 않은 상태에서의 심각도와 빈도를 평가한다. 위험성 아래와 같이 심각도와 빈도의 조합이다. Risk = Frequency + Severity For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

Step 4 Risk Rating(위험성) 결정 For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

Step 7 개선계획 수립 - 원칙 ECRS & ALARP 원칙 (Elimination/Combination /Rearrangement /Simplification 제거/통합/재배치/단순화) (As Low As Reasonable & Practical – 가능한 합리적이고 실제적으로 낮게) Hazard(위험요소) Risk(위험성) Eliminate the hazard or risk (위험요소 또는 위험성 제거) Substitute the hazard or risk(대체) Engineer out the problem(기계적인 방호) Introduce administrative controls (표준, 절차서, 안내표시 등) Provide Personal Protective Equipment (개인보호구) For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

02 03 Performance Safety culture. Coatings For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

Achieving “zero injuries” safety performance will require a culture shift and the involvement and ownership of all employees. Na tur Injury Rates al Ins Desired outcomes of a superior safety culture tin c ts Sup ervi sion • • A safe work environment An acceptance of responsibility for personal safety An acceptance of responsibility for the personal safety of others Increased organizational pride and a stronger sense of team Self Teams Reactive Dependent • Safety by natural instinct • Compliance is the goal • Delegated to Safety Manager • Lack of management involvement • • Management commitment Training Rules/procedures Supervisor control, emphasis, and goals Condition of employment Fear/discipline Expectations Value all people Interdependent Independent • Personal knowledge, Commitment, and standards • Internalization • Personal value • Care for self • Practice, habits • Increased communication • Individual recognition For internal use only – not to be circulated outside Akzo. Nobel • • • Help others conform Others’ keeper Networking contributor Care for others Organizational pride Open communications Marine & Protective Coatings

SAFE(Safe Awareness For Everyone) Lead Facilitator For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

SAFE 4 STEPS Setting up the SAFE structure Preparing for the SAFE Meeting Holding the meeting Reviewing effectiveness Preparing safety Data Creating hot topics For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

BBS(Behavior based safety) – SAY Process Injury Rate Action Upper Limit Lower Limit Withdrawal For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

BBS Process Flow DATA MANAGEMENT JOB DATA COLLECTION/ FEEDBACK BARRIER REMOVAL TEAM IDENTIFY CRITICAL BEHAVIORS MANAGEMENT SPONSOR For internal use only – not to be circulated outside Akzo. Nobel STEERING COMMITTEE Marine & Protective Coatings

BBS Process Index BST Process Index Score Summary 100 90 80 70 70 74 81 79 67 60 50 40 30 20 - For internal use only – not to be circulated outside Akzo. Nobel - - - - Dec/09 Jan/10 Feb/10 Mar/10 Apr/10 May/10 Jun/10 Jul/10 Aug/10 Sep/10 Oct/10 Nov/10 10 Marine & Protective Coatings

04 Audit For internal use only – not to be circulated outside Akzo. Nobel How sustainability is shaping our business Marine & Protective Coatings

HSE&S Audit CORPORATE RESPONSIBILITY Bo. M Assurance Corporate Policies Corporate Directives and HSE&S standards Improvement feedback occurs at all levels Each level of audit reviews conduct of the lower levels HSE&S guidance notes BU Guidelines Local Procedures Corporate HSE&S Audit Specialist Audit (incl compliance) Local Audit Legislation Local Practice Activities Performance For internal use only – not to be circulated outside Akzo. Nobel • Executive Safety Audit • Monthly Management Audit • BBS Observation • PSM Audit • ISO 14001/OHSAS 18001 Audit Marine & Protective Coatings

Site Improvement Plan Questionnaire Sub-Element: 2 -2 Safety Assessment level Owner Team a Performance against target Performance gap(s)/Root Causes Plan 최근 성과 파악 및 목표 설정 차이 분석 및 근본원인 분석 Actual • --------------------------------- Process Strengths c 강점과 약점 분석 b • • Areas for Improvement • • --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- d 개선 계획 수립 Key Improvement Actions What For internal use only – not to be circulated outside Akzo. Nobel Who When Marine & Protective Coatings

Questionnaire - Elements For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

Questionnaire – Maturity levels Leading (World Class) 10 Maturity Levels 1, 4, 7, 10 are “stable” levels. Others are transitional 10 9 8 Integrated 7 6 5 Functional 4 3 2 Informal Non-existent 1 (Ad-hoc) 0 For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings 4

Is SAFETY the same for everyone? For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings

END This is the end of the presentation Thank You ! For internal use only – not to be circulated outside Akzo. Nobel Marine & Protective Coatings