Lockheed Martin Case Study
*Lockheed Martin Corporation*
Company Description
Lockheed Martin Corporation is a diverse,
high-technology company involved in aerospace,
information technology, energy research and
production and environmental technology and
defense programs. The corporation has 160,000
employees and annual sales of $30 billion.
Lockheed Martin Utility Services, Inc.,
operates
the Paducah Gaseous Diffusion Plant
for the
United States Enrichment Corporation.
The
plant produces enriched uranium that
fuels
nuclear reactors in the United states,
Japan,
Korea and Europe. The plant has 4,300,000
square feet under roof. Four large
process
buildings constitute about 75 percent
of
the plant's total floor space. There
are
also cooling towers, electrical switchyards
and several support operations structures,
including sewage and liquid effluent
treatment
plants, decontamination and recovery
operations,
water treatment, a coal-fired steam
plant,
maintenance operations, laboratories,
fluorine
facilities and air plants.
Revenues from 1996 sales were $1.6
billion
for the Paducah Plant and her sister
facility
in Portsmouth, Ohio. Together, the
plants
use more than 3,000 megawatts of electricity,
equivalent to about one percent of
the total
electricity generated in the United
States.
At the same time, the amount of enriched
uranium both plants produce in one
year is
sufficient to meet the electricity
needs
of California and New York.
The Paducah Plant has 1950 employees
working
in four shifts, seven days a week.
The hourly
labor force is represented by two collective
bargaining agents, Oil, Chemical and
Atomic
Workers Union, Local 3-550 (OCAW) and
the
United Plant Guard Workers of America,
Local
111 (UPGWA). The two unions represent
over
900 employees, 876 in OCAW and 35 in
UPGWA.
Each bargaining unit has elected officials
which serve On a number of improvement
teams
throughout the year. Their knowledge
and
experience of plant
operations plays a vital role in the
success
of the safety and health programs.
Safety & Health Program
A. Overview
The Paducah Plant's strategic plan
is based
on a " Survive and Thrive"
strategy
that focuses on:
- Accident- and -Error Free Performance
- 100% Availability of Production Equipment
- Reducing Costs
The Paducah Plant views accident- and error-free performance, employee
safety and health and productivity as part of a closely linked process.
When the plant operates without errors, accidents are avoided and equipment
is maintained in a fully operational condition. The plant has adopted a
home-grown version of a Japanese Five S program (based on the work of Takashi
Osada) called Conduct of Operations. This program focuses on accurate procedures,
extensive training and qualification of employees, work control and pre-job
briefings as the basis of maintenance work and an extensive program of
internal surveillances, audits and self-assessments. Paducah employees
place emphasis on planning, good housekeeping, standardization of work
practices, communication and discipline.
All plant personnel are expected to
report
any problems (and recommend solutions)
through
a structured problem reporting system,
which
identifies about 8,000 issues a year.
The
problem reports are reviewed daily
by Industrial
Safety to identify safety issues. Safety
evaluations are conducted and immediate
compensatory
actions are implemented. After the
safety
evaluation is conducted the problem
reports
are classified as safety suggestions
if warranted
and assigned to the responsible organization
for correction. Additional focus on
safety
is provided through safety meetings,
a rigorous
lockout and tagout program, a joint
union
and management safety committee, a
staff
of health and safety experts and the
use
of empowered union/management teams
to improve
safety and work processes. The OCAW
union
has an appointed safety and health
representative
who identifies safety and health issues
and
provides input for making improvements
to
the plant's safety and health program.
He
works as a craftsman half a day and
as a
safety professional the remainder.
This arrangement
has enabled him to contribute to the
successes
in resolving safety issues.
Each month, union representatives from OCAW
and UPGWA and management meet to identify
safety-related issues in the plant and discuss
concerns raised at off-site union meetings.
As a result of the monthly meetings, actions
are assigned to the managers and progress
on corrective actions is tracked through
the minutes of the meeting until resolved.
Electrical issues are referred to the Plant
Electrical Safety Committee for resolution.
Plant personnel also conduct extensive root
cause analysis of any major Safety or operational
problem and examine the root causes of minor
repetitive problems.
The plant's senior management takes
a very
active role in the safety program.
Senior
management regularly spend time walking
spaces
throughout the plant evaluating health,
safety
and operational conditions. Facility
evaluations
are conducted based on their personal
observations
and reports are issued quarterly. First
line
managers are also vital leaders for
safety
and productivity. These managers conduct
the crew briefings, hold safety meetings,
verify compliance with procedures and
assure
that their employees meet documented
qualification
standards. First line managers and
maintenance
work planners review all aspects of
jobs
prior to the initiation of job activities.
Planners ensure adequate parts and
procedures
are available. First line managers
go to
the work area and review Lockout/tagout
(LO/TO)
permits and boundary controls parameters.
First line managers are the first people
to receive and act on any type of safety
or operational issue.
The Safety and Health Work Permit (S&HWP)
and the LO/TO programs are two fundamental
elements of the overall safety and health
program at the Paducah plant. The S&HWP
is a tool used to evaluate planned work to
identify potential job hazards. The S&HWP
consists Of two major sections. The first
section lists a broad description of the
entire project and is titled. "ENTIRE
WORK SCOPE." This section applies to
all work groups that will perform work under
this permit. Space is provided in this section
for support groups such as Nuclear Safety,
Fire Services, Industrial Safety, as well
as other needed groups to provide further
recommendations for the control or elimination
of safety hazards. Appropriate safety guidance
such as system preparations, nuclear criticality
requirements, LO/TO permits, etc., are listed
in this section as it applies to the entire
work scope. The next section is job specific
and is titled "PERMIT BLOCK" Permit
blocks are subdivisions of the operations
required to complete the broad objective
stated in the entire work scope section.
Each craft will receive their own permit
block that encompasses the tasks they are
to perform. Space is provided in these blocks
for Health Physics and Industrial Hygiene
groups to perform specific health hazard
evaluations, as needed. Pertinent requirements
such as required personal protective equipment
heat stress work/rest regiments, sampling
requirements, additional special equipment,
etc., are listed in this section. In 1992,
the LO/TO program was enhanced to meet new
standards which include the use of personal
locks, lock boxes and lockable valve covers.
All employees are expected to work
in accordance
with the plant's procedures. Employees
are
expected to report any and all problems
with
equipment or procedures and any form
of safety
and health concern through the problem
reporting
system. Employees who report problems
always
receive a reply to let them know what
corrective
action is being taken.
A general plant policy to empower all plant
employees with Stop Work Authority is an
example of the management's team concept
in operating the plant. All employees have
the authority to stop work if they notice
a change in their job scope which presents
a hazard. Any procedure error detected is
adequate reason for stopping work. Work cannot
continue until errors are corrected and all
job hazards are eliminated.
B. Capital Improvements
Since 1990, various internal and external
safety and health audits performed at PGDP
have resulted in the identification of more
than 14,600 unsafe conditions. The audits
compared the company workplace conditions
with the United States Department of Labor,
Occupational Safety and Health Administration
(OSHA) General Industry Standards. The majority
of the unsafe conditions identified during
that time period were related to working
platforms, machine guarding, electrical equipment
and fire protection upgrades. Through April
1998, all but 30 of the 14,600 unsafe conditions
have been repaired or replaced to meet OSHA
standards and improve employee workplace
conditions. As stated before problem reports
can be written by any employee who discovers
an unsafe act or condition. All problem reports
written related to employee safety are evaluated
by a dedicated group of industrial hygiene
and safety specialists.
Since 1993, management has spent approximately
$12million dollars on OSHA compliance
upgrade
projects.
Major projects include:
* Guardrail Installation
Over 7 miles of guardrail have been
installed
on work platforms at elevated heights
to
protect employees from fall hazards.
Approximately 125 ladders, platforms
and
stairways have been repaired or replaced
to meet OSHA standards.
* Machine Guarding
Currently, 1500 pieces of process and
auxiliary
equipment have had machine guards installed
or modified to meet OSHA machine guarding
standards.
* Electrical Safety
Over 600 circuit breaker panel directories were retraced and labeled to
ensure overcurrent protection of equipment.
* Fire Protection
Significant improvements to sprinkler
systems
have been made to various buildings
throughout
the plant to protect employees and
process
equipment.
* Health Hazard Upgrades
Comprehensive studies to identify health
hazards including respiratory protection,
heat stress and hearing protection
were conducted,
evaluated and applicable recommendations
implemented.
C. Union/Management Safety and Health
Teams
The plant makes frequent use of Total
Quality
Management (TQM) teams to improve work
processes
and employee safety. These teams are
composed
of union employees and members of management.
The combined knowledge of these groups
have
enhanced facility operations. Some
of the
team.s recent accomplishments include:
-Improving hot work (welding and burning)
by revising procedures, modifying training
and enhancing the overa11 welding program
with these quality improvements.
-Reducing the amount of paperwork and
preparation
time required by the permit system
by combining
various work permits into one permit
while
still addressing all safety and health
issues
and ensuring employee protection.
- Researching new ways to protect workers
in the plant's high temperature environments
through the use of cool vests and portable
air cooling equipment. The process
floors
can have temperatures reaching 140
degrees.
- Developing a safe new method for
cleaning
air cooled power transformers in production
buildings and capturing the dust particles
in a HEPA vacuum system. The new method
meets
OSHA requirements, prevents damage
to equipment
from build-up of dust and improves
operating
efficiency.
D. Injury/Illness Performance
Recent data on the plant's injuries and illnesses shows that in the past
six years, recordable injuries and illnesses (RII) have declined from 8.31
in 1991 to the 1997 rate of 3.07. (See Fig. 1) Total lost workday cases
(LWC) have also declined. In 1991, the LWC rate was 4.1 and in 1997 had
declined to l.13. (See Fig.2) In comparison with the Bureau of Labor Statistics
injury/illness data for 1996, the plant was below the industry average
for our industry code. This improvement can be attributed to management's
commitment, personal accountability. an effective safety program and teamwork,
which has continually improved since 1990. Safety professionals work with
employees during job planning. Conducting evaluations and question/answer
sessions have also been beneficial for the employees. Utilizing a strong
work planning philosophy has also been a key to reducing injuries and increasing
production.
Total Recordable Injuries/Illnesses Rate
(figure1)
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
8.31 |
5.29 |
5.57 |
4.67 |
4.5 |
3.19 |
3.07 |
Total Lost Work Day Rate (figure2)
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
4.1 |
1.96 |
0.84 |
0.98 |
1.1 |
1.27 |
1.13 |
Increasing safety awareness among employees
has been a continuous goal for the
plant.
The more safety information an employee
receives,
the more likely he/she will think about
how
to complete a job in a safe manner.
The plant
has embraced the STAR concept - Stop,
Think,
Act and Review. This concept serves
as a
mental signal for employees to stay
focused
on being safe.
Many factors contribute to the plant's
success
in reducing injuries. For example:
- Crew briefings.
- Job evaluations.
- Discussions on potential hazards.
- Reviewing near-misses.
- Accident investigations (injuries
and vehicles).
- Identifying hazards and immediately
reporting.
- Communicating trending information.
- Displaying safety information/charts/graphs
throughout the plant for employees to view
(see following example).
- Motivating employees to be actively
involved
in their safety.
- Continuous training.
- Prompt reporting of minor injuries.
Making Safety Visible
|
Goals |
Actual |
LWC-A |
<=8/year |
______ |
LWC-A RATE |
0.42 |
______ |
RII |
<4/month |
______ |
RII RATE |
2.83 |
______ |
|
|
|
PREVIOUS DAY INJURIES: _______
Accident- and error-free performance is not
limited to on-the-job performance. It includes
off-the-job performance as well. Off-the-job
injuries can affect production by forcing
a reassignment of employees, overtime work
and job rescheduling. Safety meeting topics
are selected to remind employees to be safety-minded
away from work. Examples include vehicle/transportation
safety, recreational safety and home safety
(which includes fire, electrical. lawn equipment,
etc.). Emphasis on off-the-job safety has
been instrumental in the decline of off-the-job
accidents. resulting in Increased productivity.
Off-The-Job Injury Rate (figure3)
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
9.24 |
5.67 |
4.85 |
4.29 |
2.48 |
3.81 |
2.45 |
Setting target goals for injury/illness
performance
is an integral pan of the safety program
to reduce injuries/illnesses and is
used
in conjunction with a safety award
and recognition
program. Employees are recognized for
their
safety performance. Demonstrations.
safety
fairs. seatbelt day, tool safety and
electrical
safety are some examples of campaigns
utilized
with specific safety awards distributed.
Effect On Productivity
The Paducah Plant uses the separative
work
unit (SWU) to measure productivity
based
on total
production output. Productivity is
measured
based on the unit cost of a SWU and
based
on the number of
SWUs produced divided by the number
of employees.
Other measures that are important to
the
plant are
on-time delivery and compliance with
production
schedules.
The Paducah Plant's safety based culture
has enabled it to operate efficiently
and
reach all-time production records.
The plant
has maintained 100 percent delivery
of its
product on schedule and has constantly
met
quality standards. Factory costs have
been
reduced by 20 percent over the last
5 years
and a 24 percent improvement in employee
productivity has been achieved based
on the
unit output per employee. (See figure4)
<<figure4 : Omitted>>
One significant contributing factor to the
20 percent reduction in factory cost was
the elimination of costly process incidents.
Historically, these incidents have been caused
by personnel error, inadequate preventive
maintenance, or inadequate procedural controls.
Several of these incidents have cost in excess
of $12million in equipment and production
losses. (See figures 5 & 6)
<<figure5 : Omitted>>
Production Cells On-Stream (figure6)
1993 |
1994 |
1995 |
57.8% |
72.0% |
96.9% |
The efforts to instill a safety culture
at
the facility involved the revision
and generation
of numerous procedures, improvements
in training,
significantly increasing the focus
on procedural
adherence, increased employee sensitivity
to conditions which could lead to equipment
malfunction and improvement to the
preventive
maintenance program. These actions
helped
identify unsafe conditions and practices,
thereby improving industrial safety
performance.
As a result of these actions, plant
operations
and maintenance has improved. The improvements
have been demonstrated by reductions
in equipment
failure, the near total elimination
of equipment
downtime resulting from personnel error
and
increased production.
In addition to the positive trends
in industrial
safety and production, the increased
rigor
and attention to detail is in keeping
with
the expectations of the facility regulator,
the Nuclear Regulatory Commission.
Increased
focus on improving industrial safety
is clearly
conducive to improving productivity
of plant
operations.
Comments and Coclusions
High productivity rates in manufacturing
can only be achieved by focusing on
accident-
and error-free performance. Safety
and productivity
are two sides of the same coin and
are gained
or lost through the rigorous daily
focus
on details through procedures, work
control
and effective communication.
The plant has been the recipient of several
awards which demonstrate our ability to integrate
safety, quality and productivity. In 1995,
the plant received the Kentucky Governor's
Safety and Health Award for working over
man-hours without a lost workday requiring
days away from work. In 1997, two awards
were received; one national award and one
state award. The plant was selected as one
of the ten best plants in America by Industry
Week magazine. In December, PGDP received
a 1997 Commonwealth of Kentucky Quality Achievement
Award. This award is presented annually to
Kentucky companies that set and maintain
a high standard for quality in daily operations.
It is evident that the safety and health
of plant employees is of the utmost
importance
to senior management. Management's
willingness
to spend millions of dollars to identify
and alleviate unsafe acts and conditions
is evidence of their support. PGDP
continues
to evaluate workplace hazards and work
on
upgrade projects to improve workplace
conditions
and enhance employee safety. These
changes
have come during a time where emphasis
was
also being placed on production issues
and
improvements. The declining accident
rates
continue to show the compatibility
of safety
and production. |