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Safety and health at work is everyone’s concern. It’s good for you. It’s good for business. Workshop 4 The Health and Safety Culture of an Organisation A Joint Exploration of Safety Culture with Electrocomponents and Toyota

TMHE and EU-OSHA Reflect on Health and Safety Culture

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Toyota Material Handling Europe (TMHE) and EU-OSHA recently explored the meaning of an organisational health and safety culture together during a benchmark event on 5th and 6th June 2013. Peter Carlsson, Vice President Production Powered Trucks at TMHE, and Dave Mason, Head of Global Health and Safety at Electrocomponents, define the main points that make a company’s culture and the roles that the Toyota Production System (TPS) and employee engagement play in it. Visit our website to find out more about our efforts to improve health and safety: http://www.toyota-forklifts.eu/en/company/osha/Pages/default.aspx

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Page 1: TMHE and EU-OSHA Reflect on Health and Safety Culture

Safety and health at work is everyone’s concern. It’s good for you. It’s good for business.

Workshop 4

The Health and Safety Culture of an Organisation

A Joint Exploration of Safety Culture with Electrocomponents and Toyota

Page 2: TMHE and EU-OSHA Reflect on Health and Safety Culture

2www.healthy-workplaces.eu

Purpose of the Session

What is the definition of culture?

What makes a culture good or bad?

What can you measure?

What does this tell you?

Case Studies

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Who are we?

Dave Mason Electrocomponents

Head of Global Health and Safety

Peter Carlsson Toyota Material Handling Europe

Vice President Production Powered Trucks

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Dave Mason

My Background:

18 years in the British Nuclear Industry – Variety of roles, before I left,

I was the Head of Assurance for a Category 1 Nuclear Facility.

5 years running my own consultancy – corporate clients both

nationally and internationally.

Currently with RS Components as Global Head of Health and Safety,

responsible for the H&S of 7500 employees located in 32 countries over

four regions.

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Who is Electrocomponents?

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1. DEFINITIONS

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Culture Definition

Some common definitions:

The way we do things around here

A collective vision applied as a group

A shared set of values being applied in a consistent

way

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2. WHAT MAKES UP A CULTURE?

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What Makes up a Culture?

Some Generic Examples:

• Vision Statements

• Visible leadership

• Values and Behavioural Initiatives

• Employee competency

• Performance measurements and KPIs

• History – where have you come from

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Examples

Page 13: TMHE and EU-OSHA Reflect on Health and Safety Culture

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3. WHAT CAN YOU MEASURE?

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Some Examples:

• Employee surveys – How do our employees feel• Pro-active measures – Dual Assurance• External benchmarking - Performance• Leadership behaviours – Visible and tangible• The ‘X’ Factor – What we see and feel/instinct• How H&S is managed – Professional networks• H&S Communication - Evidence and age

Cultural Indicators

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4. CASE STUDY:

‘The importance of continuous employee

engagement to improve health and safety

culture and business performance’

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Why does employee engagement matter to us?

Shareholder returns Profits / Operating Margins

Customer Loyalty Employee Productivity

High engagement organisations generate 22% above average returns for shareholders (Source: Aon Hewitt)

High engagement businesses have operating margin up to three times better than low engagement businesses (Source: Towers Watson)

High engagement teams have a very positive measure of customer loyalty – low engagement teams had a negative measure (Source: Serco Plc / Aon Hewitt)

Business units with engaged employees are an average 18% more productive (Source: Gallup)

Health and Safety Employee Wellbeing Retaining Key Employees Continuous Improvement

62% more accidents in low engagement businesses compared to others (Source: Gallup)

A major retailer reported 33% fewer days off sick among employees in stores with high levels of engagement (Source: Aon Hewitt)

Turnover in low engagement teams at a Fortune 100 company was three times higher compared to high engagement teams (Source: Wellin et al 2005)

Encouraging shop floor input at BAE and creating a more engaged workforce has reduced the time taken to build fighter planes by 25%. (Source: BAE)

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My voice is designed to answer two key questions for Electrocomponents

1. How engaged are employees?

Engagement Behaviours

2. What factors are driving levels of engagement ?

Culture & Environment

Leadership & Vision

People Management

Employee Growth &

Development

Co

mm

un

ication

SAY

STAY

STRIVE

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Employee Engagement

It’s having employees who are intellectually and

emotionally involved in their work.

Engaged employees have a strong and loyal desire for their organisation to

be successful.

One of many similar definitions…

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Why Engagement and not Satisfaction?

Employee Research Over Time

Po

siti

ve

Co

rrel

atio

n

Wit

h B

usi

nes

s P

erfo

rman

ce

Lower

Higher

Commitment

Engagement

Business Results

How much people WANT to contribute to business success

How much people like it here

How much people WANT and actually DO to improve business results

Satisfaction

Page 20: TMHE and EU-OSHA Reflect on Health and Safety Culture

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5. CASE STUDY:

‘How the implementation of TPS - Toyota

Production System- has strengthened the health

and safety culture in one of Toyota’s factories’

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Peter Carlsson

My Background:

Master of Science in Mechanical Engineering, Linköping University

Joined the company in 2000

2002-2008: Production Manager

2009-Present: Vice President Production Powered Trucks Division, BT

Products AB

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Mjölby factory Sweden

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History

• 1926 Toyota Industries Corporation (TICO) was founded by Japan’s

“master of invention” Sakichi Toyoda.

• 1946    BT founded (BT = Construction & Transport Economy Inc)

• 1968    BT factory opens in Mjölby, Sweden

• 2000    BT joins the Toyota family

• 2002    TPS Implementation (TPS = Toyota Production System)

• 2010 Safety Dojo

• 2012 Certification OHSAS 18001

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Printed document is an unregistered copy. Verify the validity in the management system.

Name of meeting Manager’s organisation Staff

Safety and Health Committee,Company

(twice a year)

Plant Safety & Health Committee

(twice a year)

Dept. S&H CommitteeMeeting

(twice a year)

S&H Meeting(twice a year)

General S&H Supervisor, Company, President

Senior S&H delegateS&H delegateS&H Engineer

Senior S&H delegateS&H delegateS&H Engineer

Senior S&H delegateS&H Engineer, Occupational

S&H services, Union representatives,

HR Manager

General S&H Supervisor, PlantPlant General Manager

S&H Promotion member, Manager of each workplace

Dept. S&H Supervisor Manager

Safety and Health Promotion Organization and Structure

S&H Administration

S&H Meeting(once a month)

S&H Department, (Plant General Manager)

Senior S&H delegateS&H Engineer, Dept. S&H

Supervisor ManagerUnion representatives,

HR Manager

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Continuous Improvement Respect for People

THE TOYOTA WAY - Our Philosophy and values

Genchi Genbutsu

Kaizen

Challenge

Respect

Teamwork

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Aim for ”Zero Accident” Workplaces

Challenge• Safe Work

• Reliable Work

• Skilled Work

• Safe Work is “the door” to all work (By Eiji Toyoda,

Honorary Advisor, who was the General Safety and Health

Supervisor in 1957, constitute Toyota´s basic philosophy)

• Let us always pass through this door first

• All work must be performed under safe conditions

• The resolutions and actions not only of those directly

involved in work operations but also of supervisors are of

paramount importance

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Risk assessments

Continuous improvements• Risk assessments

• Countermeasures

• Supervisor and S&H delegate

• Kaizen Board at the Shopfloor

Kaizen

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Daily management

Daily check-ups

• Daily regularly meeting

• Daily management in the workplace

Agenda:

• Accidents – incidents

• Quality

• Delivery

• Productivity

Genchi Genbutsu

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Safety Dojo

• One of TMHE’s safety initiatives is the unique Safety Dojo concept. This is a dedicated area where employees receive mandatory safety training and learn the best practice to prevent risks.

• Policy, rules and regulations

• Induction training

• Every two years

• 10 stations

Respect

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Safety Inspection

Teamwork

Safety Inspection

• Supervisors

• Safety Engineer

• Senior Safety Delegate

• Safety Delegate

• Risk assessments

• Action plans

Page 31: TMHE and EU-OSHA Reflect on Health and Safety Culture

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Positives

• The movie “Safer together”

• Staff engagement survey

• Improvements of the safety figures

Positives / Our Challenge

Our Challenge

Personal protective equipment• Increased understanding• Importance of using protective equipment• Welding helmet – shoes – jacket - gloves

Technical protective equipment

• Integrated welding extraction

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Conclusions

• Some measures can be copied but not easily

benchmarked

• Results are generally unique to the organisation

• Used for indicators – not always as black and

white measures

• Essential for organisations truly wanting to

change

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THANK YOU FOR YOUR ATTENTION !

Q&A