Safety Culture, Safety Management System and Leadership for Safety Assessment for SYNERGY

138 Pages·2017·5.72 MB·English

SAFETY CULTURE, SAFETY
MANAGEMENT SYSTEM AND
LEADERSHIP FOR SAFETY
ASSESSMENT FOR SYNERGY POWER

LIMITED

SUBMITTED TO:
DR. NASIR AFGHAN

GROUP MEMBERS:
HUMAYUN YOUSAF (06670)
MUHAMMAD AKBAR (05970)
MUHAMMAD OWAIS YAR KHAN (04098)
SYED HASSAN MAHMOOD WASTI (06668)
UMAIR MEHMOOD UZ ZAMAN (06703)
DECEMBER 9, 2017
INSTITUTE OF BUSINESS ADMINISTRATION KARACHI
PROJECT REPORT DISCLAIMER
This project report is for study and research purpose only and is the part of MBA Project concluded by
Students of Institute of Business Administration, Karachi. All the information used in this report is from
publically available sources keeping in view the authenticity of the information. The name of the company
used in the report is fictitious, original company name is kept confidential on the request of the Client’s
Project Coordinator. The results of the survey presented in this report are based on samples using
representative sampling technique and results may differ if the whole population is taken into account.
Copyrights © of this report including all information, questionnaire and assessment tools are with MBA
Program Director of IBA Karachi, Dr. Nasir Afghan. No part of this report and the questionnaire may be
used, reproduced, distributed, published or transmitted in any form or by any means, including
photocopying, recording, or other electronic or mechanical methods, without the prior written permission
of the MBA Project Coordinator of IBA, Dr. Nasir Afghan.

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Dr. Nasir Afghan. No part of this report can be used or published without written permission of
Dr. Nasir Afghan.
INSTITUTE OF BUSINESS ADMINISTRATION KARACHI
Contents
Introduction .................................................................................................................................................. 7
Project Background ................................................................................................................................... 8
Main Project Objective ................................................................................................................................. 8
Scope of Project ............................................................................................................................................ 8
Methodology ................................................................................................................................................. 9
Description of Survey Indicators ................................................................................................................. 11
Safety Culture Indicators......................................................................................................................... 11
Availability of Resources ..................................................................................................................... 11
Commitment to Safety – Everyone / Individuals ................................................................................ 11
Commitment to Safety- Senior Management ..................................................................................... 12
Contractor Safety Management ......................................................................................................... 12
Housekeeping ..................................................................................................................................... 12
Incident Reporting and Investigations ................................................................................................ 13
Legal and Regulatory Compliance ....................................................................................................... 13
Openness to Communication ............................................................................................................. 13
Peer Relationship ................................................................................................................................ 14
Policies and Procedures ...................................................................................................................... 14
Respect for People .............................................................................................................................. 14
Reward and Recognition Roles and Responsibilities .......................................................................... 15
Safety Performance Measurement and Reviews................................................................................ 15
Training, Awareness and Competence ............................................................................................... 15
Use of Tools and Equipment ............................................................................................................... 15
Occupational Health and Safety Management system .......................................................................... 16
Competence Management and Training ............................................................................................ 16
Emergency Response Procedures ....................................................................................................... 16
Hazard Identification and Risk Management ...................................................................................... 16
HSE Training ........................................................................................................................................ 16
Incident Reporting and Investigation .................................................................................................. 17
Management Safety Leadership ......................................................................................................... 17
Process for Design and Engineering .................................................................................................... 17
Process for facility’s life management ................................................................................................ 17
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INSTITUTE OF BUSINESS ADMINISTRATION KARACHI
Resource Management ....................................................................................................................... 18
Safety Communication ........................................................................................................................ 18
Setting of Safety goals, JD, SOPs ......................................................................................................... 19
Sampling Process ........................................................................................................................................ 19
Data Sources for Primary and Secondary Research .................................................................................... 20
Secondary Research Sources: ................................................................................................................. 20
Primary Research Sources ....................................................................................................................... 20
Key Deliverables .......................................................................................................................................... 21
Success Criteria ........................................................................................................................................... 21
Challenges, Risks and Restraints ................................................................................................................. 21
Reporting Method ....................................................................................................................................... 22
Intellectual Property Rights Protection ...................................................................................................... 22
Synergy Power Limited (G&T) surveys ........................................................................................................ 23
Inference from the surveys ......................................................................................................................... 24
Safety Culture of SPL ................................................................................................................................... 24
Safety Culture Survey Results Analysis ................................................................................................... 24
Category Level Analysis of Survey ............................................................................................................... 26
Availability of Resources ......................................................................................................................... 26
Commitment to Safety – Everyone / Individual ...................................................................................... 27
Commitment to Safety – Senior Management ....................................................................................... 28
Contractor Safety Management ............................................................................................................. 29
Housekeeping ......................................................................................................................................... 30
Incident Reporting and Investigation...................................................................................................... 31
Legal and Regulatory Compliance ........................................................................................................... 32
Openness to Communication ................................................................................................................. 33
Peer Relationship .................................................................................................................................... 34
Policies and Procedures .......................................................................................................................... 35
Respect for People .................................................................................................................................. 36
Rewards and Recognition ....................................................................................................................... 37
Roles and Responsibilities ....................................................................................................................... 38
Safety Performance Measurement and Reviews ................................................................................... 39
Training, Awareness and Competence ................................................................................................... 40
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INSTITUTE OF BUSINESS ADMINISTRATION KARACHI
Use of Tools and Equipment ................................................................................................................... 41
Weak Areas Identified on the basis of survey ............................................................................................ 42
Analysis of results of individual interviews ............................................................................................. 42
Summary of interview with Senior Management ............................................................................... 43
Summary of interviews with Middle Management ............................................................................ 43
Summary of Interview with Operation Level Manager ...................................................................... 44
Weakness Identified during in-depth interviews .................................................................................... 44
Effectiveness of Safety Management System at SPL .................................................................................. 45
Category level analysis for Effectiveness of Operational Health and Safety Management System at SPL 47
Competence Management and Training ................................................................................................ 47
Emergency Respose Procedures ............................................................................................................. 48
Hazard Identification and Risk Management .......................................................................................... 49
HSE Trainings ........................................................................................................................................... 50
Incident Reporting & Investigation ......................................................................................................... 51
Management Safety Leadership ............................................................................................................. 52
Process for Design and Engineering ........................................................................................................ 53
Process for facility’s life management .................................................................................................... 54
Resource Management ........................................................................................................................... 55
Safety Communication ............................................................................................................................ 56
Setting of Safety goals & Safety policy .................................................................................................... 57
Vision, Mission, Business goals, JD, SOPs ............................................................................................... 58
Weak Areas Identified in Operational Health and Safety Management System at SPL on the basis of
survey .......................................................................................................................................................... 59
Secondary Research .................................................................................................................................... 60
Safety Policy ............................................................................................................................................ 61
The Safety Manual .................................................................................................................................. 62
Areas of Improvement ........................................................................................................................ 65
Review of system of safety awareness and training program ................................................................ 66
Areas of Improvement ........................................................................................................................ 67
Review of system of hazard identification and Risk Management ......................................................... 67
Areas of Improvement ........................................................................................................................ 68
Review of system of reporting incidents ................................................................................................ 69
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INSTITUTE OF BUSINESS ADMINISTRATION KARACHI
Areas of Improvement ........................................................................................................................ 69
Review of system of investigating incidents ........................................................................................... 70
Areas of Improvement ........................................................................................................................ 70
Analysis of Accident Investigations and Process of Corrective and Preventive actions ..................... 71
Review of System of Safety reward recognition and reprimand ............................................................ 72
Areas of Improvement ........................................................................................................................ 72
Review of System of Safety Audits.......................................................................................................... 73
Internal Audit System.......................................................................................................................... 73
External Audit System ......................................................................................................................... 74
Areas of Improvement ........................................................................................................................ 74
Review of system of safety inspections .................................................................................................. 74
Areas of Improvement ........................................................................................................................ 74
Review of system of fire safety ............................................................................................................... 74
Areas of Improvement ........................................................................................................................ 75
Review of system of emergency preparedness and response ............................................................... 75
Areas of Improvement ........................................................................................................................ 75
Management Leadership at Synergy Power Limited .................................................................................. 76
Recommendations ...................................................................................................................................... 79
Recommendation # 01 ............................................................................................................................ 80
Training on Safety Leadership for SPL Leaders ................................................................................... 80
Improving leadership Engagement ..................................................................................................... 80
Development of Effective communication ......................................................................................... 81
Development of questioning attitude ................................................................................................ 82
Development of ability to solve problems .......................................................................................... 83
Recommendation # 2 .............................................................................................................................. 84
Initiating Competency-based Learning ............................................................................................... 84
Well-being of subordinates to be the utmost priority ........................................................................ 84
Immediate reporting of an accident should be a basis of performance appraisals ........................... 85
Promoting a culture of near miss reporting........................................................................................ 85
Recommendation # 3 .............................................................................................................................. 85
Develop Employee Ownership in the company .................................................................................. 85
Annexures ................................................................................................................................................... 87
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INSTITUTE OF BUSINESS ADMINISTRATION KARACHI
Annexure A1............................................................................................................................................ 87
Annexure A2............................................................................................................................................ 88
Annexure A3............................................................................................................................................ 89
Annexure A4.......................................................................................................................................... 124
Annexure A5.......................................................................................................................................... 127
Annexure A6.......................................................................................................................................... 128
Analysis ............................................................................................................................................. 128
2) SPL-III ............................................................................................................................................. 128
Analysis ............................................................................................................................................. 128
Analysis ............................................................................................................................................. 129
Analysis ............................................................................................................................................. 129
Annexure A7.......................................................................................................................................... 131

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Dr. Nasir Afghan. No part of this report can be used or published without written permission of
Dr. Nasir Afghan.
INSTITUTE OF BUSINESS ADMINISTRATION KARACHI
Introduction
Synergy Power Limited (SPL), formerly ‘Synergy Power Supply Corporation’ was incorporated as a limited
liability company in the early 20th Century and is now listed on Pakistan Stock Exchange operating under
the Companies Ordinance 1984.
The Company is principally engaged in the generation, transmission and distribution of electricity to
industrial and other consumers under the electricity Act, 1910 and NEPRA Act, 1997. The registered office
is situated at SPL House, Metropolis.
It was formed as a small power house named as Synergy Power Supply Corporation having a generation
capacity of 2.5 MW serving Metropolis, which was a town with around 100,000 inhabitants at that time.
SPL became a part of WAPDA in early 80’s and was handed over to different Govt. institutions for
increasing operational efficiencies. Due to persistent losses and operational inefficiencies, it was
privatized in recent years and ultimately Zeon sought its control which not only turned a loss-making entity
into a profitable one, but made SPL the most efficient electric utility with lowest incidence of load
shedding, as compared to other electric distribution companies in Pakistan.
After years of struggle, first profit was posted few years earlier and has shown continuous improvement
in the bottom line since then. In terms of service almost 60% consumers are exempt from load shedding,
which is a marked comparison with 24% in 2009.
They are faced with the challenges of; every increasing electricity needs of Metropolis & suburbs, rising
circular debt and tariff. To counter these issues, they are readily engaged in various initiatives to improve
their energy mix through Combined Cycle, LNG-to-Power, Coal Conversion, new Coal fired Power, and
Renewable Energy (which are in line with their climate change policy 2013) Projects. The management
believes that they will be self-sufficient in generation by 2020 which will be a foundation for becoming a
net exporter of electricity to other areas of Pakistan.
Other than the goal of self-sufficiency, SPL is striving to provide affordable and safe electricity in a socially
responsible and sustainable manner. According to the Management, “SPL works relentlessly to become a
more customer-centric organization. It continues to serve and improve its services with a professional and
positive attitude”.
SPL implements highest performance standards in its generation, transmission and distribution businesses
while maintaining a close and interactive relationship with its valued customers and a diverse stakeholder
universe.”
Our group has conducted a research on Health & Safety standards at SPL after a thorough assessment of
Safety, Culture, Safety Management System and Leadership for Safety Assessment at the organization,
under the leadership of Dr. Nasir Afghan.
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Dr. Nasir Afghan. No part of this report can be used or published without written permission of
Dr. Nasir Afghan.
INSTITUTE OF BUSINESS ADMINISTRATION KARACHI
Project Background
Despite a turnaround in financial performance and improved service throughout Metropolis, there are
many challenges which any electric utility is faced with. Being a backbone for any economy, particularly a
struggling economy, continuity in electric generation is of immense significance. This continuity requires
continuous availability of fuel for power generation, availability of the manpower, funds and as well as
machinery for generation, transmission and distribution. Moreover, being a corporate entity, an
organization also has a responsibility for the well-being of all stake holders, particularly the employees,
and of the environment. Any negligence can cause disruptions in operations, additional costs and damage
to the machinery resulting into financial losses. So, Health Safety and Environment (HSE) concerns are not
only required to identify an organization as a responsible citizen, but for an overall benefit of itself.
Therefore, we strive for providing a documentation framework for improving the HSE framework at SPL
on a self-evolving basis.
Synergy Power Limited (SPL) has set Critical Performance Indicators (CPI’s), which are periodically
evaluated and are as follows:
Improvement in fleet efficiency in generating electricity
Reduction in Transmission and Distribution (T&D) Losses
Growth in EBITDA
Employee retention and satisfaction
Consistent corporate achievement and excellence
We believe that in order to achieve above objectives, safe working environment for employees is an
integral aspect.
Main Project Objective
As explained above an organization, particularly an electric power generation and distribution, has to
consider its Health, Safety and Environment as an integral aspect of business operations. Therefore, we
intend to study the current Safety Management System in SPL (G&T) their Safety Culture and Leadership
attributes, identify areas of excellence and areas of improvement and suggest recommendations for a
positive shift towards the perception of Safety as an integral part of the business and to inculcate the
safety culture in the normal business operations.
Scope of Project
The Project is limited to Generation and Transmission of Synergy Power Limited only. To achieve our
objectives, we intend to cover the following for our MBA Project.
Interim Phase:
Study the currently implemented Safety Systems in Synergy Power Limited (Generation & Transmission)
via
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Dr. Nasir Afghan.
INSTITUTE OF BUSINESS ADMINISTRATION KARACHI
 Assessment of the prevailing safety culture in the organization
 Evaluation of Current Safety Management System of the Organization
 Analysis of Safety Leadership within the Organization
Final Phase:
 Identification of areas for improvement in the Safety culture, management system and safety
leadership attributes
 Factors causing hindrance in continual improvement
 Recommendations for Safety Culture improvement
 Recommendations to upgrade Safety management system
 Recommendations to enhance visibility and effectiveness of Safety Leadership
Methodology
For assessment of HSE management system and culture in Synergy Power Limited, the project involved
both the primary and secondary research. Exploratory as well as Descriptive research methodologies were
used to extract significant information and provide important insights into safety management systems,
culture and leadership role in SPL.
The secondary research included review of data available from Synergy Power Limited internal documents
and records as well as third party sources. The primary research was based on interviews and surveys of
different tiers of management and an on-site visit of SPL power generation plants.
With Senior, Middle and
In Depth Interviews Operation Level Managers
Sample size: 05
Survey Questionnaire With Senior, Middle and
Primary Research (Safety Culture, Safety Operation Level Managers
Management Systems ,
Safety Leadership Sample size: 50
On Site Visit / Inspections SPL-2 Power Plant
Research Methods
NEPRA Power Safety Code
SPL Corporate HSE Manual
HSE Legal & Other
Secondary Research SPL Safety Procedures and Requirement Register
Manuals
Corporate HSEQ Policy
Corporate HSE SOPs
SPL Safety Circulars

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Dr. Nasir Afghan. No part of this report can be used or published without written permission of
Dr. Nasir Afghan.