1. Building and Implementing a Robust Safety Management Framework
- A Regulator's Perspective
Michael Daniel, PMP
FAA Senior Manager (Retired)
Proud Member Flight Safety Foundation
August 2013

2. Overview What SMS is to Regulators What Regulators Are Applying
What Service Providers Should Do
FAA & EASA on SMS
Recommendations
Risk Uncertainty Premises
There are known knowns; there are things we know that we know
There are known unknowns; meaning, there are things that we now know we don’t know
There are also unknown unknowns; there are thing we do not know we don’t know

3. ICAO Safety Management Framework
Annex 19 reinforces the role played by States in managing aviation safety, stressing the concept of overall safety performance in all domains
in coordination with service providers.
Policy
WHAT IS
REQUIRED
Principles
Gravitas
Procedures
ACTIONS TO
BE TAKEN
Accountabilities
WHO IS
RESPONSIBLE
HOW IS IT
ACHIEVED

4. Opportunities for Improvement
The Evolving Annex 19
Recommendations for Amendment to Annex 19 - Due 4 Quarter 2014
Guidance material due in 2014 and 2016
States need to file differences by October 2013
Opportunities for Improvement

5. Safety Management Manual (Doc 9859 3rd Ed)
Restructured according to the SSP and SMS frameworks. Its Objective is to provide States and Product/Service providers with:
• An overview of accepted safety management fundamentals.
• A summary of ICAO SARPs.
• Guidance on the ICAO harmonized State Safety Programme (SSP) framework and its implementation and operation.
• Guidance for product and service providers on Safety Management System (SMS) framework and its implementation and operation. (i.e. SMS Policy, SMS Manager Position, Sample PD’s, Gap Analysis)

6. The Regulator: Change in Role and Position
State Safety Plan (SSP):
Responsible for regulations
Responsible for periodic or special on-site audits of the SMS including verification of procedures
Basic Role of the Regulator:
To agree key safety standards and principles
To ensure national standards meet international
To resist unacceptable shortcuts to safety
To ensure service providers have appropriate
safety measures in place (including SMS)
To monitor overall safety performance
To ensure implementation of remedial actions

7. Regulator Basic Expectations of Safety Management
A structured means of safety risk management decision making
A means of demonstrating safety management capability before system failures occur
Increased confidence in risk controls though structured safety assurance processes
An effective interface for knowledge sharing between regulator and certificate holder
A safety promotion framework to support a sound safety culture

8. Examples of Different Regulator Applications:
The Regulator(s) Can Present Several Challenges to The Service Provider
Examples of Different Regulator Applications:
Requiring Two Accountable Managers
Not Designating an SMS Manager for Large Organizations
Performing SMS Audits (On-Site)
Not Performing Audits
Approving SMS Manuals
Accepting SMS Manuals
Accepting Manuals Approved by Other Authorities
Requiring SMS as part of QMS
Not Requiring or Enforcing SMS

9. The Regulator’s Enforcement Policy – Disclosure of Safety Data
Does the SSP enforcement policy include provision to protect the sources of information obtained from voluntary incident reporting systems? [3.4.8(d); App 3; App 11]
And De-conflict Enforcement Policies with Accident/Incident Policies!

10. Role of the Safety Manager: What are the Regulators Requiring?
Is it Safety or Quality? At What Level?
Quality and Safety Management Key Points
QMS and SMS – Common Methods and Techniques, but different Objectives:
QMS Objective is Customer Satisfaction
SMS Objective is Aviation Safety Focused
Not required to have a QMS, but if an entity does have one, it cannot conflict with SMS
"It is how the tools and techniques are used, along with a focus on investigation of events, which makes the quality and safety management systems different. The quality systems do not investigate incidents or accidents for risk assessment. Quality systems audit output of a process only for variance, and makes adjustments. SMS investigates events, looking for contributing factors from all influencing sources."
Source: "Flight Safety Information February 12, 2010 No.034

11. What Service Providers Should Do ?
Service providers should demonstrate a proactive and systematic approach to its stakeholders
Provide comments suggestions to ICAO, Regulators, Associations The use by industry of SMS is an increasingly necessary basis for fulfilling service-providers’ safety responsibilities.
Service Provider:
Responsible for ensuring safety
Responsible for complying with SARPS
Responsible for showing to the Regulators that
they are managing safety
Group Consensus Collaboration
Use Industry Tools (i.e. CAST – Safety Enhancements

12. What the FAA is doing
1 State Safety Program (SSP) Overview
2 FAA SMS Overview
3 FAA SMS and the Aviation Industry
4 International Collaboration

13. What the FAA is doing

14. USA SSP The US FAA responsibilities include most of SSP requirements.
Other US government organizations, such as National Transportation Safety Board (NTSB), will also need to be included in the US SSP
USA meets the intent of most of ICAO SSP requirements (i.e. ATOS, VDRP, FOQA)
Differences Filed!

15. Additional SSP Activities
USA elected to further enhance SSP by incorporating SMS concepts into:
Joint Planning and Development Office (JPDO) SMS Standard
Department of Transportation (DOT) SMS Guidance
FAA SMS Policy and Guidance
Office of Aviation Safety (AVS) SMS Requirements Order
Office of Rule Making SMS Order
FAA AVS and Airports SMS rulemaking activities

16. FAA SMS Overview

18. FAA SMS Order

19. FAA Risk Management

20. How the FAA Regulators Will Approach Safety Oversight

22. New FAA Part 5 Pending Issuance
Pilot Projects
In executive coordination at this point and with Office of Management & Budget OMB 
New FAA Part 5 Pending Issuance

24. Safety Management International Collaboration Group (SM ICG)
• Purpose: to promote a common understanding of safety management principles and requirements, facilitating their application across the international aviation
community
– Collaborate on common SMS/SSP topics of interest
– Share lessons learned
– Encourage the progression of a harmonized SMS
– Share products with the aviation community
– Collaboration with international organizations such as ICAO and civil aviation authorities

25. SM ICG Products and Outputs
• Harmonized SMS requirements and safety oversight
processes and measures
• Guidance material for regulatory authorities and industry
• Standard terminology and hazard taxonomy
• Knowledge sharing between authorities

26. SM ICG Areas of Focus Documentation Best practices
Guidance and tools for industry and other authorities
Safety behaviour assessment tools
Training and promotion material
Measurements Safety performance measurement framework
Methodology for setting safety performance expectations (SMS and SSP)
Process for identifying risk acceptance/thresholds within safety risk management (SRM)
Standardization Common taxonomy for hazards
Data analysis and sharing processes
Comparison and alignment of international SMS and SSP terminology
Others Data sharing
State Safety Programme
Cost and benefits
Manufacturer requirements (challenges/questions regarding Annex 8)

27. FAA & EASA SMS Requirements for Foreign Operators?
FAA can only apply SMS provisions to Foreign Operators under FAR Part 129.
SMS requirements can only applied to the level of FAA compliance to ICAO SARPs.
Currently Not in FAA IASA Program
Regulation (EC) No 216/2008 and Part-TCO
EASA Third Country Evaluation Phase
For operators in category A, the process will consist of a straight-forward desktop file review. Operators who have been grouped into categories B and C are required to provide additional information online including at least:
- compliance statements with a set of selected ICAO SARPS, including references to the applicant’s operations manual;
- additional information that will enable the Agency to prepare for the assessment in the areas airworthiness, operations and safety management;
a statement of the competent authority of the applicant confirming that all information is true and correct
Basic Viewpoint “Equivalent Level of Safety”

28. 12/JUL/2013: EASA Committee votes favourably on the EASA TCO proposal
12/JUL/2013: EASA Committee votes favourably on the EASA TCO proposal. The meeting of The EASA Committee took place in Brussels from Wednesday 10 to Friday 12 July, during which the proposal for a Commission Regulation on Third Country Operators (TCO) was adopted. The proposal will now undergo European Parliament and European Council scrutiny, and its final adoption and publication by the European Commission is expected before the end of 2013.
And Other Authorities?
- It may vary from requiring IATA IOSA Registration to having an Authority Approved Safety Management Program

29. With Reference to EASA SSP

30. Some Recommendations 1st Conform with Home Authority’s SMS Reqmts.
Have strong policy statement driven (ICAO template)
Perform Continual Gap and SWOT Analysis
Provide comments suggestions to ICAO, Regulators, Associations, SM ICG
Have strong internal SMS audit program
Third party audits on occasion
and

31. Structure in SMS Vertical Alignment
International Standards
ICAO International Standards (Annex 19)
Regulatory Safety Requirements
Corporate
Policy
Corporate Policy
Aligned CEO/Accountable Manager Statement
Department
Alignment
Organization Department Safety/Position Description Alignment
Processes-Procedures Alignment
Head of Section
Head of Section Safety/Position Description Alignment
Procedures/Forms-Template/Task Alignment

32. SMS Effectiveness Realization
Expected Effective Implementation
Effectiveness
2009
SMS ICAO Standard
New Annex 19

33. Useful Links http://www.skybrary.aero/index.php/Main_Page
Michael Daniel, PMP
FAA Senior Manager (Retired)