Six Sigma and Lean
in EHS / HSSE (Health, Safety,
Security & Environmental)
Health, Safety,
Security and Environmental (HSSE) costs
and impact are often considered to be burdens that have to be carried
by international businesses, but sometimes very little is done to
understand them and control them worldwide.
Six Sigma / Lean deployments identify key drivers for the business, and
for most business these include Cost, Revenue Growth, Safety and
Working Capital. HSSE impacts all these areas and represent great
opportunity in a global deployment, yet are at best glossed over, which
can be problematic internationally when considering how health, safety
and environmental regulations change from country to country.
Consider the
following HSSE impacts on the four drivers:
| Safety
|
·
Fatalities
· Reputation
· Injuries
· Days away from work
· Reduced company morale
|
| Growth
|
·
Due diligence for acquisition (don't
acquire liabilities)
· Social responsibility
· Sustainability - balance environmental, social -
environmental
performance for the future
· Total lifecycle of product
· New market regulation and requirements
· New product (sourcing, impacts, competing product
advantages
etc)
· Loss of contracts
|
| Cost
|
·
Cost of capital (lending rates)
· Utility and water usage
· Annual remediation spend
· Annual compliance spend
· HSSE staff costs and overhead
· Operations assigned HSSE staff
· Prevention programs
· Fines and penalties
· Insurance claims management
· Lawsuits
· Training
· Equipment downtime
· Equipment control technologies
· Regulatory permitting and disposal costs / fees
· Product liability
· Waste material costs
· Packaging waste
· Reserve management (balance sheet liability)
· Lost production
· Insurance experience modification rates
· Workers compensation
· Litigation (3rd party)
|
| Cash/Working
Capital |
·
Capital deployed on environmental
projects
· High chemical / waste inventory or storage
· Waste water treatment facilities
· Escrow management
· Surplus properties that can't be sold due to environmental
liability (brownfields)
· Reimbursement of remediation spend through state funds for
storage tank clean-up
· Cost recovery through insurance claims, lawsuit recovery
|
SBTI's
HSSE Offerings
SBTI and it's
global strategic partner Inogen
have developed a systematic
approach to revitalizing the HSSE function in your multi-national
company.
The tiered approach of Perform, Optimize, Transform can take an
under-resourced, under-skilled, underperforming HSSE group, perceived
as a mere cost to a business, to one that brings true value to the
future growth of the company.
Inogen
provides an
international
resource pool of skilled HSSE individuals. By transitioning HSSE
activities to Inogen's resources, the client HSSE organization frees up
it's valuable internal HSSE resources to work on the right things
(including Optimize and Transform). This ensures valuable client HSSE
resources are not poorly utilized on mundane activities best done by
the right-priced Inogen resource.
Inogen's global HSSE resource pool gains economies of scale only
possible for a large HSSE network and typically unavailable to most
clients. By outsourcing HSSE activities, the costs are pay-as-you-go
versus the overhead of extensive internal HSSE resources. Thus client
costs are reduced, whilst increasing the quality of work undertaken.
Inogen's
HSSE expertise, coupled with SBTI's Lean and Six Sigma process
improvement methodologies drive down the waste and cost in the HSSE
processes in your business.
Lean processes are nimble and responsive with minimal non-value added
activities. Process lead times are reduced, with less resource needed
and lower costs.
Six Sigma ensures each process is bullet-proof, running right the first
time and every time. In an environment where defects can mean death or
serious injury, what better than a methodology that can drive incidents
down to near-zero level?
The majority of
HSSE costs are not in the HSSE
function, but hidden in the Operations of the business. Inogen's HSSE
expertise, coupled with SBTI's Six Sigma process improvement
methodology drive down the impact of HSSE related issues on the larger
company infrastructure. The Six Sigma approach of identifying,
minimizing and controlling the root-cause of problems works to lower
the company environmental reserve, lower costs, reduce safety related
issues and create potential for future growth previously impossible due
to HSSE related issues.
For more
information regarding HSSE, please contact HSSEinfo
or call 1-888-752-7070.
|
