achieving and sustaining operational excellence in manufacturing
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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.
Achieving and Sustaining Operational Excellence in Manufacturing:
DuPont Approach
Achieving and Sustaining Operational Excellence in Manufacturing:
DuPont Approach
Srinivasan RamabhadranGlobal LeaderProcess Safety & Risk Management OfferingsDuPont 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
Core values: Safety, ethics and respect for people and the environment
$32 Billion revenue with 13 business units from electronics to plastics, paints and agricultural chemicals
Over 175 operating facilities around the world
Worldwide reputation for industrial safety
DuPont applies a single PSM management system worldwide
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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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.
The Vision of DuPont
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.
4ETHICS & 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
GoalAchieve 5% ($50 Million USD) annual decrease in energy use, consistent with sustainability goals
Results 1990 - 200919% decrease in energy use
20% increase in production
$5B in cost savings
* TRI = Toxic Release InventorySources: DuPont Global Reporting Initiative (GRI) report, Yahoo Finance
Reduction 1990 - 2009Air Carcinogens 92%U.S. TRI* “Releases” 77%Air Toxics 75%
Energy Efficiency Initiatives Examples
Integrated load controlsUtilize Vented H2 in CB BoilerImprove Condensate ReturnReduce Liquid Nitrogen UsageSteam Trap MaintenanceCooling Tower Water TemperaturesMonitoring & TargetingMindset and Behaviors…
Absolute Values
0%
20%
40%
60%
80%
100%
120%
140%
160%
Perc
ent o
f 199
0 (2
004
for
wat
er)
ProductionWaterHazardous WasteEnergyCO2 eq.
Share price ($)
100$
1990 1995 2000 2005 2009
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 ApproachMajor 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.
Compliance & Reporting Initiatives
Strategy &Roadmap
Growth & Innovation
Operations Efficiency
Integrated Management Systems
Culture & Processesin Operations Management
Stakeholders Engagement
Corporate Core Values
Shift emphasis from here
To here
To here
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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Assets ManagementIntegrated Production Systems
Outcomes and
Sustainable Improvements
Plant Performance and Business Imperatives
Manufacturing Asset
Managing Process
DuPont Best Practices
Standard Operational Procedures
DuPont Best Practices
Standard Operational Procedures
Technical Model
Operate to Plan ( Capacity, Productivity)
Maintenance and Reliability
Supply Chain
Manufacturing Technology
Small Project Implementation
Operate to Plan ( Capacity, Productivity)
Maintenance and Reliability
Supply Chain
Manufacturing Technology
Small Project Implementation
Capabilities Engine
200 yrs of Manufacturing Experience
DuET
Engg. COC –M & R, Energy
Six Sigma Champions
Subject Matter Experts
200 yrs of Manufacturing Experience
DuET
Engg. COC –M & R, Energy
Six Sigma Champions
Subject Matter Experts
Mindsets and Behaviors
Technical training
Continuous Learning Environment
Technical training
Continuous Learning Environment
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 processin 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.
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 Process Safety Management Model
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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PSM Leadership Model
Trained , Knowledgeable, Capable People in all roles Adequate resources
Financial Support Knowledge Management
Cat A PSM Incidents
Cat C PSM Incidents/Near misses/ Key Learnings
Metrics & Recommendations from Incidents , PHA & Audits
LeadershipSafety Culture, Commitment, Accountability, Resources, Involvement
Foundational
Cat B PSM IncidentsLagging
Indicators
Leading Metrics
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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Achieving Operational Excellence: Leadership driven
Objective
Detail
Future “TO-BE” ObjectiveCulture Maturity curve
Safety Focus Areas(Safety elements, timing, milestones)
Implementation PlanActions to upgrade upstream
Safety operating model
Strategy
Overall “AS-IS” Position• Culture Maturity curve
Executive Summary• Key Risks• Gaps & best practices
Detailed Analysis• Findings• Focus Areas
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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Compliance assurance: Line Accountability
Tasks & Deliverables• Visible program support• Strategic guidance, direction & objectives• Hold HSSE councils, Cross-sub working groups to commitments
Supporting Orgs• Technical guidance• Feedback & testing• Ongoing support
Project Team• Day-to-day management• Project communications• Information clearinghouse
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
Line Organization• Implement policies,
procedures and processes• Ensure appropriate training
and execution• Provide data to
subcommittees for ongoing monitoring
HSSE Experts
Line organization
Supporting Implementing
Workplace Safety
Process Safety
Contractor Safety
Occupational Health
Environment
CSCChair
HSE Council
Security
Project Team`
Cross-subsidiary working group
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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Practical approach to establish new practices and behaviors
Coaching Coaching Coaching
Practical Application
client lead & Dupont review
Practical Application
DuPont lead
Content Finalization through task teams W
orks
hop
1
Wor
ksho
p 2
Wor
ksho
p 3Practical Application
client lead & Dupont support
Performance metrics to sustain change
Deliver
Top management involvement
Transformation
Practical Application:Skills transfer is tested and coaching is provided in the field
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.
Performance metrics to sustain change:Selecting and implementing performance metrics with a focus on leading metrics to sustain the improvement initiatives.
Expert and Experiential coaching: On-the-job coaching to build capabilities and confidence to drive the change.
Content finalization through task teams:Development of best practice Management System and content.
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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Focus on Execution is Key
=
Management Standards
Operational Discipline
Operational Excellence
x
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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Operational Discipline Characteristics
OPERATIONALOPERATIONALEXCELLENCEEXCELLENCE
LeadershipLeadershipby Exampleby Example
ExcellentExcellentHousekeepingHousekeeping
EmployeeEmployeeInvolvementInvolvement
PSRMPSRMResourcesResources
OrganizationalOrganizationalPridePride
NoNoShortcutsShortcutsActiveActive
CommunicationsCommunications
PracticesPractices==
ProceduresProcedures
UpUp--ToTo--DateDateDocumentationDocumentation
StrongStrongTeamworkTeamwork
SharedSharedValuesValues
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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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
• Leaders must insure sufficient, quality resources are dedicated to PSM system requirements
• Leaders must hold their line organization accountable for PSM implementation and results.
• Leaders must recognize and reward PSM accomplishments to drive continuous improvement
• Leaders must lead…felt leadership
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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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.
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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www.sustainablesolutions.dupont.com
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