Presentation on theme: "Global Safety Management: Revolution or Evolution? Making the Business Case for Safety Management."— Presentation transcript:
Global Safety Management: Revolution or Evolution? Making the Business Case for Safety Management
Summaries, Conclusions, and Action Items 2 Major Discussion Points The approach to safety management may vary among organizations but the objective is the same: reduced risk, improved safety. Building an accurate business case for SMS implementation is not an easy task. SMS builds on existing elements in the organization. SMS is one element of risk management. Comprehensive scope from training pilots to those working on the hanger floor.
Summaries, Conclusions, and Action Items 3 Major Discussion Points SMS should be a performance based standard with set outcomes and elements. Scaleable to organization. Return on investment: eliminating accidents leads to reduced costs. Litigation fees alone can exceed $20m per accident. One study of potential benefits of SMS system impact showed that up to 50% of the accidents studied could have been prevented had an SMS been in place. A vital component of corporate due diligence.
Summaries, Conclusions, and Action Items 4 Reaction from the Floor Does one size fit all? Should there be a common standard? Outcomes, elements are the same, but how one meets the standard varies. It should be aligned with the business model not just compliance requirements. Human factors training for SMS personnel is a critical element
Summaries, Conclusions, and Action Items 5 Reaction from the Floor What are you doing beyond risk assessment? Risk assessment is the heart of SMS, but there are several other elements, such as risk mitigation and risk elimination. Customers, maintenance organizations should be part of a manufacturers SMS processes. A comprehensive SMS will incorporate all possible sources of information to improve safety
Summaries, Conclusions, and Action Items 6 Outcomes/Additional Ideas Difficult to quantify the benefits of SMS into dollars/euros. There are potential significant benefits to implementing a SMS in any organization. Executives are accountable for their organizations safety. Managing organizational change is the biggest challenge. Implementing SMS is a learning process.
Summaries, Conclusions, and Action Items 7 Outcomes/Additional Ideas If one thinks safety is expensive, try an accident!