Sistema Integrado de Gestión
Safety, Health, Environment and Quality Management. Introduction
Consolidation of the actions carried out for risk and opportunity management in Health, Safety, Environment and Quality is presented hereunder as part of the corporate action plan conducted during 2017.
The company’s Corporate Policy development for 2017 has a risk and impact control strategy in all the activities it carries out, directly and through contractors based on:
- Strengthening leadership, commitment and responsibility at all levels.
- Updating the Integrated Management System, based on ISO 9001: 2015, ISO 14001: 2015, OHSAS 18001 (ISO DIS 45001) new requirements.
- Updating operation process maps, procedures and operation standards.
- Establishing and applying procedure for subcontractors’ selection and assessment.
- Improving on operation, identification, assessment and risk control.
- Maintaining training and qualification of personnel who perform high-risk tasks.
- Improving information collection and analysis on Safety, Health and Environment.
- Carrying out corrective actions and improvement opportunities, derived from internal, external and event investigation audits.
Corporate action plan
To develop the strategy, there are action plans at company level and by project, in which the objectives, goals and responsible are established.
According to the Integrated Management System’s elements (SIG), the main actions developed during 2017 are listed below:
1. ORGANIZATION AND ITS CONTEXT
In a project led by the Senior Management together with an external consultant, it was decided to upgrade SIG and focus on:
- EDVSA Strategic plan 2017 - 2020 based on analysing context, stakeholders, risks and opportunities.
- Training, dissemination and awareness actions for all Company personnel, initially focused on Senior Management, Managers, Technical Managers, Construction Managers and internal auditors, regarding changes on standards and accountability.
- SIG performance revision by the Senior Management, to perform required corrective actions and apply identified improvement opportunities.
- Updating SIG documented information (Manual, standards, procedures).
Senior Management established the corporate risk and opportunity map, considering the existing processes: strategic, operational and support; as well as the processes generated: diversification and differentiation. At the same time, and to ensure the updating of this context, mechanisms and tools that consider the information provided by stakeholders and risk & opportunity follow-ups were generated.
EDVSA’s risks and opportunities were valued for their impact on: people, environment, economic / financial, image and reputation, information management and legal compliance.
- To promote leadership, commitment and skills of our personnel and people who work on behalf of our company, to achieve performance with integrity based on values and corporate principles.
- To manage risks and enhance business opportunities for the company, its customers and other concerned parties.
- To comply with our client’s legal requirements and other interested parties’ requirements regarding quality, environment, safety and occupational health that are applicable to their businesses, processes, activities, products and services.
- To achieve customer satisfaction, mitigate environmental impacts, prevent injuries and occupational diseases, and achieve a safe and healthy work environment.
- To establish, communicate and measure objectives and goals to evaluate and continually improve our performance as well as our suppliers and contractors’ performance, in terms of quality, customer satisfaction, environment, safety and occupational health.
- To integrate and lead criteria for environment protection, safety and health in the relevant stages of project life-cycles and services through good practices and international standards application.
- To develop convenient and sustainable agreements with customers, business partners and suppliers.
- To diversify and differentiate the company business towards innovation and efficiency.
2. LEADERSHIP AND COMMITMENT
Company's Management and Managers involment was reinforced with training in updating ISO 9001: 15, ISO 14001: 15, ISO DIS 45001 Standards; as well as with participation in workshops to generate or modify guidelines.
CODE OF ETHICS AND CONDUCT
Which reaffirms company’s principles and values, and establishes guidelines on issues such as life protection, respect and non-discrimination, conflict of interests, intellectual property, among others.
PCORPORATE SUSTAINABILITY POLICY
Understood as the document that expresses the Management commitment and includes other guidelines and requirements to be met, such as: road safety, stop work, workplace free of alcohol and drugs.
Which includes diversification and differentiation areas, as the axis of improvement in services provision.
In different levels, that allows to present EDVSA with the current growth of its different business units (North - Neuquén, South - Comodoro Rivadavia - and Buenos Aires).
As a formal mechanism for generating corporate work plans and accountability, to revise compliance with objectives, goals and indicators.
To generate specific plans, it was considered:
- Assessment of each SIG’s element and external diagnosis by specialized personnel. A diagnostic audit was performed on SIG (external consultant) to identify use, compliance and update of the existing SIG (based on ISO 9001: 2008-ISO 14001: 2004 and OHSAS 18001: 2007 Standards); as well as the GAP Analysis, regarding regulatory requirements updated with ISO 9001: 2015, ISO 14001: 2015 and DIS ISO 45001 Standards.
The diagnostic audit (March 2017) showed that key variables such as: high staff turnover (work per projects), difficulties in access to information and timely communication of client requirements and internal requirements, context characteristics (social, union) in which the activities are carried out; and insufficient supplier / contractor control, are affecting performance in terms of Company Safety, Health, Environment and Quality.
On the other hand, opportunities for improvement were identified in: strategic risk analysis, identification / monitoring of stakeholder requirements, unification in standards application, criteria and operation controls; as well as in strengthening HSE roles and authorities in various positions in the company, and developing the corporate and project control board.
- Legal requirements and applicable requirements identified from relevant stakeholders
- Assessment results of hazards / risks, aspects / impacts, deviations, complaints and claims.
New plans were established with 2017-2020 time horizon, with annual indicators, as well as start and end dates.
We highlight EDVSA's strong investment in management and in qualified resources allocation (at corporate level, business unit and in each project) to achieve and maintain a good performance in Health, Safety, Environment and Quality. Actions related to support include:
SIG dissemination, using computer tools with coverage in most work fronts and achieving initial online assessment in the mid-level management group (144 people).
Training during 2017: 50,890 man-hours trained in HSEQ (18,420 North Area + 32,470 South Area), out of 4,168,508 man-hours worked.
Communication: EDVSA determined the internal and external communications relevant to the Integrated Management System, considering the following scheme:
- Management Committe
- Direct contact with purchasing / subcontractors / administration areas
(environment close to the bases and projects)
- Direct contact with Human Resources area – Labour Relations areas
- E-mail: [email protected]
- Direct contact with Commercial and Business Unit Managers areas
- Meetings at bases, offices, works/projects
- Direct contact with Human Resources – Labour Relations
- Management Committee
- E-mail: [email protected]
- Line managers
- Health and Safety joint Committee
STATE – GOVERNMENT
- Sectoral meetings. Participation in IAPG Chambers
- Forums / Meetings
- Legislation. Matrix of legal requirements and other requirements
- Events convened by clients / other stakeholders
FOR ALL STAKEHOLDERS
5. OPERATIONAL CONTROL
- Corporate risk scenarios and risk analysis of the activities were updated, with emphasis on high-risk tasks (available in our documentary database). In addition, controls are applied in accordance with client's requirements, such as risk analysis and work permits.
- There is an ongoing project to implement human resources module in the AX Dynamics application to achieve an online record of man-hours worked on each project / base and optimize management of preventive indicators (training, certified skills, required qualifications ) and consequential ones (accidents).
- Specifically, each project applies operational controls in line with the Project Manager, supervision and application of applicable standards and procedures. Projects are monitored with an HSE performance matrix (actions in prevention) and indicators, to provide timely information and facilitate monitoring and decision making of accident control.
- During 2017, the performance matrix was developed in all projects, obtaining on average 80% compliance in variables such as: training plan and staff qualification (with emphasis on personnel performing high-risk tasks), simulation actions, JSA / PRS (Job Safety Analysis / Potential Risk Spreadsheet) audits and supervisors’ preventive observations.
- On the other hand, the road safety strategy has provided the expected results, reflected in 2017 in 11,576,731 km traveled without accidents, with a fleet consisting of 387 units (146 North Area and 241 South Area). Thus, actions are maintained and strengthened in: daily satellite speed controls (standard RSV tachograph control), travel management (risk analysis on routes), blood alcohol control, closed park, specific campaigns; as well as training, qualification and awards, according to drivers' performance
An environmental strategy was generated for EDVSA, taking advantage of previous experience and environmental performance, and the convergent updating process of SIG based on the new 2015 versions of (ISO 9001 and ISO 14001) Standards. Environmental issues were strengthened with the new Sustainability Policy and its commitments in: mitigating environmental impacts, making efficient use of resources, integrating and leading environmental protection criteria in the relevant project and services life-cycle stages through the application of good practices and international standards, in addition to meeting legal requirements and other stakeholders’ requirements, especially from clients. Therefore, a mechanism was created to carry out the preliminary analysis of activities, processes, products and services, from the life cycle perspective and its relationship with environmental aspects in which the company can control and influence. This permitted to establish the environmental strategic plan, which prioritizes EDVSA's environmental performance improvement over the next four years in the following five areas (see summary table), based on objective information availability:
- Energy and its respective indirect and direct greenhouse gases emissions, seeking process efficiency, conservation and gradual and viable conversion to renewable energy sources.
- Project Waste and Surpluses: classified in: SW solid waste assimilated to urban ones, IW Industrial Waste and HW Hazardous Waste, seeking minimization at the its generation and promoting reuse and recycling practices.
- Water: in relation to industrial and human consumption, as well as in effluent generation. Reducing its consumption by potential losses and waste, as well as developing actions for effluent reuse for irrigating bases.
- Soil: Know and measure impact on areas of fragile soils and develop practices with minimum impact and affectation, as far as possible, carry out restitution or compensation actions, such as revegetation or reforestation.
- Eco Innovation: Detect and promote more eco-efficient processes, practices, technologies and less polluting and more sustainable materials.
Based on life cycle considerations, environmental aspect and impact matrices were also updated and environmental indicators were defined by groups: energy, waste, soil, water and emissions. During 2017, the company generated the baseline for energy indicators comparing it with 2016 - 2017.
Summary chart. Axes of environmental intervention 2017 and 2020.
- The company has medical specialists in occupational health in the different geographical areas. They perform monitoring and control over employees’ health conditions based on medical tests (for admission, periodic ones, for high risk tasks and termination of employment), considering legal and client requirements.
- Tests are carried out by specialized and authorized centers to provide such services and the results obtained. These tests allow us to guide preventive actions to control exposure to noise, cardiovascular and ergonomic risk; as well as maintaining qualifications for works at height, confined spaces and driving.
- During 2017, we also carried out vaccination campaigns, first aid training and accompaniment to cases with health alterations.
- In compliance with the guidelines to achieve a workplace free of alcohol and prohibited drugs, there were 3,844 random checks in the different contracts during the year (in the north, 480 blood alcohol controls, and in the south, 2.840 controls of alcohol and 524 toxicological tests). These checks allowed us to identify 45 positive cases of alcohol (1.34%) and we applied EDVSA’s Code of Ethics and Conduct.
By 2018, the protocol for handling and monitoring positive cases, as well as control actions, will be strengthened to achieve compliance with the objective.
Emergency preparedness and response
Risk and impact updating and consideration of elements specific to EDVSA’s context and its stakeholders were reflected in the changes in emergency preparedness and response procedures, as well as in the activation, support, response and evaluation roles.
Suppliers and subcontractors
The company performs an initial evaluation and necessary performance monitoring assessments to its suppliers and subcontractors. According to the generated classification on products purchased / outsourced services and their impact on critical processes or their high risk in safety aspects, health, environment and quality (The scale has three levels: Class I, II and III, with Class I having the greatest impact). During 2017, supplier groups were identified and assessment and follow-up criteria updated, which allowed us to establish a consolidated list of suppliers, and grouped as class I, the 27% in Chubut and Santa Cruz (124/462) and the 11% of suppliers from Neuquén and Rio Negro (67/583). Moreover, there were changes in suppliers, consistent with poor performance evaluation results in Health, Safety, Environment and Quality, and with the follow-up results carried out by our clients (accident investigations with evidence of non-compliance with rules and standards).
EDVSA is focused on fulfilling the client and relevant stakeholders’ requirements, therefore quality management is applied in all SIG elements, and specifically in the processes related to the client:
- Product / service requirements identification and review
- Communication with clients
- - Design and development application, which currently considers options that allow to meet alternatives to optimize results of products/services life-cycle analysis
- Client's property protection
- Document and material identification and technical traceability
- Consolidation of knowledge about the organization
To ensure planning and control (operational follow-up in the field) of the contracts / projects, during 2017 the Power BI application (visualizer to AX) was configured to allow real-time project status (scope, compliance, costs and indicators).
6. PERFORMANCE ASSESSMENT
Follow-up and measurement
Performance assessment considers follow-up and measurement of own indicators, as well as assessment results carried out by stakeholders (clients, commercial / technological partners), which are analyzed monthly in the Management Committee, which allows generating and maintaining the required corrective actions.
A. SAFETY AND HEALTH INDICATORS
All incidents / events have been timely reported, investigated, and immediate causes and root causes identified; as well as specific actions have been generated using EDVSA’s management system elements as a reference.
The consolidation of the information allows us to characterize the accident rate, thus:
- Type of accident: "Footprints on objects" (24%), "Knocks on moving objects" (15%) and "Crash against objects" (15%), "Entrapment" (10%) and others (36%).
- Agent: "Building elements of the work environment" (26%), "Work transit area" (20%).
- c) Injured body part:Hands (16%), Eyes (13%) and Ankles (10%).
Indicator analysis on accident rate allows concluding that although the event frequency index is higher than 1 per 1,000,000 man-hours worked, the severity of these is low and is mainly related to the characteristics inherent to the type of work performed ( manual work on irregular surfaces - outdoor).
It is also identified in the causes of the events that the accident rate is impacted by contractors and subcontractors who do not fully comply with the controls established in EDVSA SIG. In these cases, complementary actions have been generated for their control, as well as for empowerment of the company mid-level managers and supervisors.
Regarding occupational health, there are no occupational diseases recorded and medical test results carried out during 2017 (Pre-occupational tests-460-, Periodic tests -796- and Postocupational tests -66-), indicate that frequent pathologies are:
hearing loss (29%), lumbar pathology (29%), obesity / overweight (20%), hypertension (9%) and diabetes (4%). Therefore, actions are focused on hearing protection, ergonomics and cardiovascular risk prevention.
B. ENVIRONMENTAL INDICATORS – ENERGY INDICATORS
Within the Strategic Environmental Plan, the first milestone in the definition and consolidation of environmental indicators corresponds to understand consumption and relative weight of energy used, all measured in Mega Joules (MJ) unit and its relation to direct and indirect greenhouse effect gases emmisions, which generate the global impact called global warming (mostly responsible today for the so-called Climate Change).
Direct emissions correspond to carbon dioxide equivalent emmision (CO2 eq) caused by burning liquid fossil fuels (GO and Naphtha) and gaseous (GN and LPG); Indirect emissions correspond mainly to GHG emission factor of the Argentine electricity grid, which in 2016 and 2017 was predominantly thermal and non-renewable. During 2016 and 2017, consumptions of the following energy sources were analyzed in bases and works:
Active and reactive electrical energy. Its main use is lighting, air conditioning / heating and use of equipment on bases (mainly welding), as well as vehicle fleet maintenance activities.
Natural Gas. Its main consumption corresponds to heating.
Petroleum Liquid Gas. Its main consumption corresponds to heating remote bases or replacing natural gas in Base CR due to NG restrictions.
Gas Oil or Diesel Oil: Main energy used in light vehicle fleet (pick-ups and trucks), as well as in equipment for works (motorised welding equipment, backhoes, motor graders, among others.
Fuel basically used in vehicles for personal use and light work equipment (example: manual motorised compactor).
Analysis of fuel consumption identifies that:
- There is an increase of 4.3% in consumption in liters per 100 kilometers traveled for light vehicles in 2017 compared to 2016 and a reduction of 8.4% for truck consumption in liters per 100 km traveled.
- The consolidated results correspond to a preliminary and macro analysis, and during 2018 a deeper analysis will be done between consumption groups.
- With the available information, a comparison baseline was established for energy and liquid fuel results for 2017. A complementary analysis (see graphs below) on Gas Oil consumption groups, separated into: Equipment, Trucks and Light Vehicles or Pickups, shows that on all consumption groups efficiency actions must be taken shared.
C. CLIENT EVALUATION INDICATORS
As part of the improvement in information collection and analysis from stakeholders, communication guidelines were established for: clients’ needs and requirements, legal requirements and other requirements from relevant stakeholders, at all levels of the organization in relation to Safety, Occupational Health, Environment and Quality.
Therefore, based on some deviations identified with clients and analysis of lessons learned, clients' evaluations are currently included as a SIG indicator (performed in the customer's format or our own, which was updated to include a quantitative evaluation). This is to ensure that employees are aware of the risks and impacts of their task and their contribution to meeting these requirements.
Then, we present consolidated 2017 assessments:
Compliance Evaluation and Audit
In addition, EDVSA conducts several compliance evaluations and audits, which include established standards checking for stakeholders’ internal and legal audits, as well as the audit carried out by the certification body Bureau Veritas to the Integrated Management System, based on ISO 9001: 15, ISO 14001: 15 and OHSAS 18001: 07 Standards. In general, audit plans foreseen for 2017 were met by 95% in the north and 55% in the south, respectively.
Action plans to address the findings obtained, both non-conformities and opportunities for improvement, are incorporated into the respective work plans (corporate and operational).
Based on the information reviewed with the Management and the consolidated indicators, findings, technical reports and reports of the audits received, it is established that currently the Integrated Management System - SIG presents strengths and opportunities for improvement.
- SIG approach based on strategic planning, risks and opportunities.
- Sustainability policy and Code of Ethics and Conduct. To link clients.
- Resources allocation to develop sustainability strategy.
- Monitoring compliance with objectives and goals.
- Constantly promote client’s assessment (client or our own format).
- Include information on Health, Safety, Environment and Quality in the progress report of all projects.
- Improve activity records (management visits, training) and consolidate company information in the internal network.
- Expand supplier and subcontractor assessments, using the unified record and the new model with performance criteria in HSEQ.
- Strengthen monitoring and closure of non-conformities.
- Strengthen leadership, commitment and responsibility at all levels.
Generation of Sustainability Policy and Code of Ethics and Conduct. Strategic planning based on risks and opportunities. Definition of corporate goals and objectives. Resources allocation to develop sustainability strategy.
- 2. Update the Integrated Management System, based on the new requirements of ISO 9001: 2015, ISO 14001: 2015, OHSAS 18001 (ISO DIS 45001) Standards.
With Bureau Veritas certification in ISO: ISO 9001: 2015 and ISO 14001: 2015 and maintenance OHSAS 18001: 2007.
- 3. Update map processes, procedures and standards for operation. Changes in processes and procedures, with emphasis on flowcharts to facilitate its disclosure, knowledge and application.
- 4. Establish and apply procedure for subcontractors’ selection and assessment.
Classification and evaluation of suppliers and subcontractors, according to their impact on critical processes or their high risk in aspects of Safety, Health, Environment and Quality.
- 5. Improve operation, identification, assessment and risk control.
Hazard/risk matrices and aspects/impacts considering new variables according to SIG requirements.
- 6. Maintain training and qualification of personnel who perform high-risk tasks. Training according to legal and client requirements.
- 7. Improve information collection and analysis on Safety, Health and Environment. Implementation of the specific module in Microsoft Dynamics AX application and interface with biometric clock to record man hours and news in real time. SIG information available for company personnel on the website using Sharepoint.
- 8. Carry out treatment of corrective actions and opportunities for improvement, derived from internal, external and event investigation audits. Implementation of updated procedure, with emphasis on roles, responsibilities and response times.
We know about the challenges that remain, which are a motivation to continue the path that benefits EDVSA and each of its employees. During 2018, using as operational axes the operational discipline and accountability, we will follow the action plans that allow us to make EDVSA a sustainable company, highlighting the need to achieve the highest competitiveness, discipline and operational efficiency, to consolidate as leaders in providing engineering services, construction, operation and facilities maintenance.