1. Managing Environmental Aspects An Integrated FMEA Approach

2. Why do we Assess Risk? It’s our job Ensure compliance Protect our assets Balance our concerns Drive improvement

3. Why Integrate? Incorporate risk as part of “big picture” Common tools provide for: – Decreased Training Needs – Increased Skill – Improved Interaction More Eyes = More Opportunities for Improvement

4. When we don’t integrate… Conflicting information in different areas We risk focusing on trees instead of the forest We may initiate projects with conflicting goals We may find ourselves competing for vital resources

5. Goals for this Session: Identify potential environmental impacts using a process approach Analyze environmental risks in light of multiple business objectives Define appropriate control measures Formulate strategic improvement projects

6. Borrowing from the Quality Toolbox “Go with the flow”- process flow diagrams Find the flaws - FMEA Create a game plan - SOPs, etc. Summarize Controls - Control Plan Reduce Risk - CI Process …Review & Repeat!

7. Process Flow Diagrams What do we have? (inputs) Where/Why? (process) What’s left? (outputs, waste) How do we control? Who do we train? How can we reduce?

8. Assess the Risk - FMEA Lay out the process steps Identify hazards and effects for each action Assess the risk = Severity / Probability Summarize Controls Prioritize Actions - the power of FMEA

9. Karen’s Kwik Lube Welcome to the Kwik Lube Krew! Your job today will be to: – Map the Kwik Lube process – Identify potential environmental impacts – Assess their various risks – Draft a game plan for improvement Let’s Begin…

10. Process Map - Reminders All inputs captured (information, materials, tools, equipment) All steps clear All outputs captured (final product, information, wastes) The cross-functional model

11. Identifying Hazards/Aspects Aspects can include any solid, liquid or gas added to, used in, created by, or left over as the result of a process that has the potential to impact the environment Aspects must include elements that may not be under our direct control, but over which we can be expected to have an influence (e.g., work of contractors, etc.). Consider plans for process changes and improvements

12. Identifying Effects/Impacts Impacts May Include: emissions to air releases to water or land use of raw materials or natural resources use/emission of energy creation of waste Safety would include motion, energy, chemicals, etc.

13. Severity ScoreEffect Severity – Environmental Impact 10 CatastrophicIrreparable damage to environment or living beings 9 CriticalSpill, release, incident resulting in major remedy costs, fines, prison 7 SignificantSpill, release, or incident resulting in moderate remedy costs and/or potential fines 5 MarginalSpill, release, or incident resulting in minor remedy costs, no penalties 3 MinorEnvironmental impact not regulated / no potential to exceed requirements 1 PositiveProvides net environmental benefit

14. Severity - Other Elements ScoreEffect Severity – PersonnelSeverity – Property 10 CatastrophicMultiple DeathsCatastrophic damage to equipment 9 CriticalDeathMajor damage to equipment / Significant delay 7 SignificantMajor injury, disabling illness Minor damage to equipment / Significant delay 5 MarginalLost time injury or illness Equipment damage unlikely / Minor delay 3 MinorMinor Injury, First Aid, Near Miss Equipment damage improbable 1 PositivePromotes / improves health None

15. Severity - Other Elements ScoreEffect Severity – Resource Consumption/Waste Generation Severity – Public Concerns 10 Catastrophic Destruction of resources or uncontrolled release of hazardous waste resulting in irreparable damage Regulatory intervention, shut-down of operations 9 Critical Endangerment of resources or uncontrolled release of hazardous waste repairable over a number of years Permanent public disfavor / disruption to operations 7 Significant Resource consumption exceeds industry standards. Waste streams of excessive quantity and/or hazardous nature. Public protest / disruption to plant operations 5 Marginal Resource consumption at or below industry standards. Waste reduction / lean efforts have minimized waste streams. Public disfavor 3 Minor Resource consumption at or below industry standards. Waste streams are recycled or reused. Public concern (local) 1 Positive Provides resource recoveryImproves Public Perception

16. Probability RankingEffectProbability 10Frequent Occurrence almost certain in exposure interval 9Probable Quite likely to occur in exposure interval 7Occasional May occur in exposure interval 5Remote Not likely to occur in exposure interval 3Improbable So unlikely it can be assumed occurrence may not be expected 1Impossible Redundant/fail-safe engineering controls in place

17. Risk = S x P Probability SEVERITYSEVERITY 1097531 High 9 7 Med 5 3 Low 1

18. Controls Controlling Conditions – Engineering Controls – Pre-treatment Systems – Housekeeping Controlling Behavior – Controlled Practices (SOPs, Work Instructions) – Training & Communication – Behavior Modification

19. Control RankingEffectControl 10 Almost Impossible Control is non-existent, non-functioning, or impossible to achieve 9 Slight Control is subject to human error or misuse, no supervision provided. Includes general awareness training. 7 Low Control is subject to human error or misuse; activity is supervised. Includes general awareness training. 5 Medium Engineering controls isolate risk during proper use (e.g., guarding), no verification measures in place. 3 High Engineering controls isolate risk during proper use (e.g., guarding), verification measures in place. 1 Almost Certain Interlocks or other measures prevent the bodily contact with hazard at all time.

20. RPN Risk Prioritization Number S x P x C – Multiplication helps stratify hazards Relative Measure of Risk - relies on: – Well-defined criteria – Consistent Application

21. Determining Significance Define the criteria – Severity – Risk Avoid “lines in the sand” Continual improvement should drive change

22. How can we improve? Focus on THE PROCESS – Modify process to change or eliminate step – Reduce Severity – Reduce Probability – Institute or Improve Control Use ALL the tools - P2, Lean, 6-sigma, 5-S Ideas??

23. Integration Cross-functional Approach Adding Safety Adding Quality – Process versus Product Continual Improvement Programs

24. Questions?? kmreaume@worthingtonindustries.com