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Food Safety Industry

Safety Management Systems (SMS)and Safety Risk Management

May 5, 2010

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Agenda

• Introductions

• About JDA

• Food Safety and Aviation

• Comparative Data

• System Complexity Impact

• Heinrich Safety Triangle

• Building Safer Food Supply System

• SMS

• Safety Culture

• Benefits

• Getting Started

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Why Are We Here?

To engage in dialogue and get feedback about the potential

application and benefit of using/adapting

Aviation’s Safety Management System (SMS)

to help address the problems in our current food industry safety programs

and to help make our food supply the safest it can possibly be!

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Similarities• Significant Infallibility Issues

• Personnel Hierarchy

• Interacting Components Working Together

• Rapid Introduction of Complex New Technologies

• Redundancies and Backups

• Several Links in Mishap Chains

• Response to Errors - Usually Punishment

• Safety vs. Production and/or Throughput

• Significant Litigation Potential

• Both are Terrorists Targets

DifferencesAviation Has

• Greater Inherent Reporting Incentive (Pilots)

• More Prescriptive, Less Judgmental Operating Environment

• More Media and Political Attention –Fear of Flying

• More Robust Data Collection Infrastructure

• Independent (Non-Adversarial) Mishap Investigation

Food Safety vs. Aviation

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Part 121 Fatal Accident Rate

(Part 121 Onboard Fatal Accidents; 5 year moving average)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Fa

talit

y A

ccid

en

ts p

er

10

Mill

ion

De

pa

rtu

res

83% Fatality Accident

Rate Reduction

Every year there are 76 million cases of foodborne illness in US

Causing 325,000 hospitalizations and 5,000 deaths

Equivalent to 33 commercial airplane accidents

in US every year with no survivors

• Regulations, Policies and Programs

• Aircraft and System Design

• Crew Resource Management

• Human Factors

• Data Collection, Analysis and Corrective Action

• Safety Culture and Risk Management

• Training

• Safety Management System –SMS

Aviation Drove Down Accident Rate

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Human Error

PersonalFactors

600

30

10

1

Incidents

Accidents

Serious Accidents

Fatal Accident

Heinrich Safety Triangle

Mandatory Reporting

Voluntary Reporting

Culture OrganizationalProceduresTrainingEquipment

Design

Causal Factors

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• Public Disclosure

• Job Sanctions and/or Enforcement

• Criminal Sanctions

• Civil Litigation

Areas That Discourage Voluntary Data Collection, Analysis, and Sharing

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• More System Interdependencies Large, complex, interactive system

Tightly coupled Hi-tech components Continuous innovation

• Safety Issues More Likely to Involve Interactions Between System Parts

FACILITIES

PEOPLE

FOOD

TYPES

TOOLS

PROCEDURES

SOFTWARE EQUIPMENT

Increasing Complexity

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Unrivalled Complexity in Government

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Effects of Increasing Complexity

More “Human Error”

• System More Likely to be Error Prone• More Unanticipated Situations• Scenarios Where Non Standard Procedures No

Longer Work• Logistics are multinational and very complex

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“If you keep doing what

you’re doing…you’re going

to keep getting what you

got!”

Yogi Berra

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Building Safer Food Supply System

"The history of government regulation of food safety

is one of government watchdogs chasing the horse

after it's out of the barn.“

David A. Kessler, M.D. (FDA Commissioner)

Current Food Safety System Insures barn

door is locked with horse safely inside…

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Challenges for

Food Control Authorities

as Defined by

FAO & WHO:

• Increasing burden of foodborne illness and new and emerging foodborne

hazards;

• Rapidly changing technologies in food production, processing and

marketing;

• Developing science-based food control systems with focus on consumer

protection;

• International food trade and need for harmonization of food safety and

quality standards;

• Changes in lifestyles, including rapid urbanization; and

• Growing consumer awareness of food safety and quality issues and

increasing demand for better information.

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Globally, the incidence of foodborne diseases is

increasing and international food trade is disrupted by

frequent disputes over food safety and quality

requirements. Many food control systems need to be

revised and strengthened if improvements are to be

realized. It has never been more important for

developing countries to implement and enforce a food

control system based on the modern concept of risk

assessment. These Guidelines provide important

information on the principles and practices of food

control and the trend away from a merely punitive to a

preventive approach to food control.

Guidelines from the FAO and WHO

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Responsibility for food control in most countries is shared

between different agencies or ministries. The roles and

responsibilities of these agencies may be quite different

and duplication of regulatory activity, fragmented

surveillance and a lack of coordination are common.

There may also be wide variations in expertise and

resources between the different agencies, and the

responsibility for protecting public health may conflict with

obligations to facilitate trade or develop an industry or

sector.

Guidelines from the FAO and WHO (cont)

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Guidelines from the FAO and WHO (cont)

These Guidelines provide information for government

agencies to assist in the development of national food

control systems and to promote effective collaboration

between all sectors involved in the management and

control of food safety and quality. They highlight the

importance of developing effective relationships and

mutual support among government agencies and

institutions involved in food control and other

stakeholders, particularly the food industry and

consumer groups.

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Safety Management System (SMS)

1. Systematic and comprehensive process for proactive management of safety risks.

2. Integrates operations, technical services with financial and human resource management.

3. Top management priority.

4. Company wide safety culture and management commitment is key to it’s success!

5. Comprehensive commitment to making all food safe.

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Implementing SMS

1. Provides :

• Deal with events so valuable lessons are applied to improve safety and efficiency.

• Capacity to anticipate and address safety issues before they are incidents or accidents.

2. Instills inter-dependent culture among employees and management.

3. Reduces losses and improves productivity.

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SMS Pillars

1. Safety Policy & Objectives

2. Safety Risk Management

3. Safety Assurance

4. Safety Promotion

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SMS Pillar 1Safety Policy & Objectives

Safety Culture & Gap Analysis

Determine Corporate Culture Surveys and Observations

Organizational Interviews

Review of Policies, Procedures,

Processes & Data

Analysis & Assessment

Compare with SMS Principles

Compare Baseline with

Requirements

Document Results

Survey Example

Good gauge of safety culture is"How we do things around here.”

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• Organization’s DNA • Ingrained in daily business

operating norms• Resources to maintain safe

and efficient operations

• Acknowledge safety concerns and suggestions: Give feedback on decisions

If no action contemplated, decision is explained

Feedback is timely, relevant and clear

Safety Culture

Policy

(Structure)

Safety Assurance

Risk

Management

Safety

Promotion

Corporate Safety Culture

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SMS Pillar 1 Cont’dSafety Policy & Objectives

• Safety Policy Key part of Senior Management’s overall safety commitment and

strategy

Framework for management to put organization and responsibility in place for carrying it out.

• Safety Objectives Leadership

Training

Measurable Safety Targets

Lessons Learned

Non-Punitive Reporting System

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SMS Pillar 2Safety Assurance

• Continual Program Assessment Check Line Personnel Chief Inspector and IEP

• Data, management and utilization “Start with the End in Mind”, Steven Covey

Database design, collection & management Data Mining

» Information retrieval with meaningful results

• Non-Punitive Safety Reporting System• Program audits

Internal External

• Lessons learned • Adequate resources

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SMS Pillar 3Safety Promotion

• Training & education

• Safety competency & continuous improvement

• Safety communication

• Safety culture development

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SMS Pillar 4Safety Risk Management (SRM)

Risk Matrix Model

• Systematic, explicit, & comprehensive approach for managing risk throughout organization

• Five Phases

1. Describe the System

2. Identify Hazards

3. Determine Risk

4. Assess & Analyze Risk

5. Treat Risk

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Identify Hazards

Assess & EvaluateRisk

Mitigate

LifeCycle

Communicate

Implement

Monitor

Evaluate Effectiveness

Safety Risk Management

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sms-demo2.com

Reduce Risks…

Be ProActive…

Lower Costs…

Save Lives…

FOOD

SAFETY

MANAGEMENT

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FOOD SAFETY MANAGEMENT:

Three Stage Process

Implement Safety Enhancements –

System wide

DataAnalysis

Set SafetyPriorities

Achieve consensus on priorities

Integrate into existing work and

distribute

Agree onproblems and interventions

F S M

F S M

F S M

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Success Stories in the Airline Industry when Implementing SMS

• Conair - Occupational Health and Safety costs:

Went from +30% to –30% of industry average

Saved $1,000 per employee year one

Insurance Premiums stayed constant did not rise like their competition

• Air Transat saving over $1 million per month

• Skyservice saved $5 million in 1st year

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SMS Will…

• Establish meaningful safety policies, goals and objectives• Create individual accountability for safety• Demonstrate leadership regarding safety principles• Launch processes for risk measurement, hazard

identification and mitigation• Develop collegial interactive teams & improved

communications process • Implement non-punitive reporting; encourage “lessons

learned”• Lower sickness and deaths from food contamination

incidents• Reduce injury and damage claims costs; better productivity• Lower Operating Costs

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SMS First Steps

• Determine Safety Culture

Top Management Commitment

Communicate purpose/objective

Survey staff/employees

Interview representative set of employees

Collect, analyze and report results

• Conduct Safety Gap Analysis

Already in place vs. SMS

Identify strengths and shortfalls

• Compile and Report Results

• Develop SMS Plan

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WHAT ELSE ARE WE

ADDING TO OUR

SANDWICH?

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4720 Montgomery LaneSuite 950

Bethesda, MD 20814www.jdasolutions.aero

301-941-1460

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