Safety Management Systems - Hong Kong MTR Network

Safety Management
Systems –
Hong Kong MTR Network
George Lee
Safety & Quality Manager
17 October 2007
Information contained in this presentation should not be divulged to non-MTR
personnel except with the written authority of Safety & Quality Manager
MTR Corporation Limited 19/03/2007 Page 1

Outline of Presentation
1. Development of MTR : 1979 - 2006
2. Development of Safety Management & Key
Drivers for Change
3. Integration of Safety Management with
Corporate Systems
4. Safety Performance
5. Conclusions
MTR Corporation Limited 17/10/2007 Page 2

1. Development of MTR : 1979 - 2006
MTR Corporation Limited 17/10/2007 Page 3

Overview of MTR Establishment
• MTR Provisional Authority
• Mass Transit Railway Corporation
(1975)
(1977)
• Statutory Body
-100% owned by Hong Kong
Government
• Operating under
“prudent commercial principles”
• Privatization / Public Listing
(2000)
MTR Corporation Limited 17/10/2007 Page 4

Development of Railway – MIS
(opened in Oct 1979)
Route Km
15.6
Daily Patronage
950,809
MTR Corporation Limited 17/10/2007 Page 5

Development of Railway – TWE
(opened in May 1982)
Route Km
10.5
Daily Patronage
717,623
MTR Corporation Limited 17/10/2007 Page 6

Development of Railway – ISL Route Km
(opened in May 1985)
12.5 791,623
Daily Patronage
MTR Corporation Limited 17/10/2007 Page 7

Development of Railway – EHC Route Km
(opened in Aug 1989)
4.6
87,751
Daily Patronage
MTR Corporation Limited 17/10/2007 Page 8

Development of Railway – LAR Route Km
(opened in Jun 1998)
TCL – 30.8 308,326
AIR – 34.8
Daily Patronage
243,870
MTR Corporation Limited 17/10/2007 Page 9

Development of Railway – TKE Route Km
(opened in Aug 2002)
12.5 314,362
Daily Patronage
Route Km
Daily Patronage
97,752
MTR Corporation Limited 17/10/2007 Page 10

Development of Railway – DRL Route Km
(opened in Sept 2005)
3.4
97,752
Daily Patronage
MTR Corporation Limited 17/10/2007 Page 11

MTR Railway Systems & Equipment
• A railway network of 91 km route
• 1500 volt d.c. overhead power supply
• EMU
‣ 8-car train (length of each Urban Line train : 182
metres)
‣ 2,500 passengers / train
MTR Corporation Limited 17/10/2007 Page 12

MTR Railway Systems & Equipment,
continued
• Tunnel ventilation
• Platform screen doors
MTR Corporation Limited 17/10/2007 Page 13

MTR Railway Systems & Equipment,
continued
• To ensure maximum safety &
reliability, trains are operated with
automatic control & protection
systems (i.e. ATP, ATO, ATR)
which
‣ Regulate the distance between
trains
‣ Determine the optimal rates of
acceleration & braking as well
as the coasting speeds on
different sections of the track
MTR Corporation Limited 17/10/2007 Page 14

Current MTR Network
7 7 lines; 91 91 km km route route length; length; 53 53
stations
Providing 19 19 hours hours of of passenger
passenger service daily service from daily 6 a.m. from to 61
a.m. a.m. to 1 a.m.
During
During
morning
morning
peak
peak
hours,
hours,
trains running at 2-minute
trains running at 2-minute
intervals
intervals
MTR keeps 2.5 million people on the move
every weekday
Operations Control Centre
MTR Corporation Limited 17/10/2007 Page 15

MTR Corporation Today
• No. of staff : 6,639
• Asset value : US$15,439 M
• 2006 P & L
Turnover
Profit
: US$1,223 M
: US$995 M
• No. of properties
developed : 25
• No. of flats : 58,876
• No. of retail malls : 6
• Commercial &
office space : 582,073m 2
MTR Corporation Limited 17/10/2007 Page 16

2. Development of Safety
Management & Key Drivers for Change
MTR Corporation Limited 17/10/2007 Page 17

The initial stages of safety management
development focused on our railway
operations
MTR Corporation Limited 17/10/2007 Page 18

Overview of Safety Management Development in MTR
Date
1979 - 1989
Stage 1
1990 - 1994 1995 - 2003 2004 - 2006
Stage 2 Stage 3
Stage 4
System
• Rule Book
• Compliance Based
• Expatriate Focus
• Engineering
Standards
• Safety
Management
System
• Risk Based
Approach
• Safety
Communication
• Safety Culture
• Integrated
Management
System
• System Assurance
• Whole Project Life
Risk
• Enterprise Risk
Management
• Human Factors
Management
• Corporate Safety
Governance
• Business
Excellence Models
Drivers
‣ Lack of HK
Experience
‣ Lack of National
Standards
‣ Low Social
Expectation …
‣ King’s Cross
‣ Clapham
‣ External
Benchmarking
‣ External Safety
Mgt Review …
‣ Development of
Other Mgt Systems
‣ TQM & National
Quality Awards
‣ Cyber Info Mgt
‣ Public Listing
‣ Growth Strategy
‣ Need for
Breakthrough
Business
Performance …
Culture of Safety Awareness
MTR Corporation Limited 17/10/2007 Page 19

Stage 1 – Development of Safety Management
• Based on LUL / BR Rule Book
• Strong reliance on discipline
• “Top-down” communication
• Reliance on key individuals –
many of them expatriates with
consequential communication
problems
• Significant improvement on
existing public transport (i.e.
buses, trams, KCR)
System
Drivers
1979 - 1989
Stage 1
• Rule Book
• Compliance Based
• Expatriate Focus
• Engineering
Standards
‣ Lack of HK
Experience
‣ Lack of National
Standards
‣ Low Social
Expectation …
MTR Corporation Limited 17/10/2007 Page 20

Stage 2 – Development of Safety
Management
• Process of arriving at Safety
Management System based on
recommendation of Arthur D Little
Review Report in 1992
• Formulation of Safety Policy & Safety
Tasks and development of Safety
Responsibilities
• Establishment of a Safety Services
Dept with expertise in Risk
Management, Safety Audit, Safety
Advice, Safety Training & Promotion
and Occupational Health
• Definition of “Safety” functions as line
management’s responsibility
System
Drivers
MTR Corporation Limited 17/10/2007 Page 21
1990 - 1994
Stage 2
• Safety
Management
System
• Risk Based
Approach
• Safety
Communication
• Safety Culture
‣ King’s Cross
‣ Clapham
‣ External
Benchmarking
‣ External Safety
Mgt Review …

Stage 3 – Development of Safety
Management
• Different management systems
on safety, quality, environmental,
security & asset management
requirements running separately
could undermine our
organizational efficiency, costeffectiveness
and sustainability
• A world-class enterprise like MTR
should apply TQM principles &
criteria of other National Quality
Awards
System
Drivers
1995 - 2003
Stage 3
• Integrated
Management
System
• System Assurance
• Whole Project Life
Risk
‣ Development of
Other Mgt Systems
‣ TQM & National
Quality Awards
‣ Cyber Info Mgt
MTR Corporation Limited 17/10/2007 Page 22

Stage 3 – Development of Safety Management,
cont’d
• With the help of intranet hyperlink
technology and cyber information &
documentation management tools,
online single-page Procedures &
Work Instructions were made
possible
System
1995 - 2003
Stage 3
• Integrated
Management
System
• System Assurance
• Whole Project Life
Risk
• An Integrated Management System
covering safety, quality,
environmental and security
management requirements was
developed and implemented in the
Operations Division of MTR in 2000
Drivers
‣ Development of
Other Mgt Systems
‣ TQM & National
Quality Awards
‣ Cyber Info Mgt
• Development of system assurance
MTR Corporation Limited 17/10/2007 Page 23

Stage 4 – Development of Safety
Management
• Through Enterprise Risk
Management, the key risks in
MTR’s business were identified
and addressed
• In line with growth business,
adequate controls are put in place
to strengthen Corporate Safety
Governance
• Need for breakthrough
improvement in quality & business
performance via Six Sigma
methodology
System
Drivers
MTR Corporation Limited 17/10/2007 Page 24
2004 - 2006
Stage 4
• Enterprise Risk
Management
• Human Factors
Management
• Corporate Safety
Governance
• Business
Excellence Models
‣ Public Listing
‣ Growth Strategy
‣ Need for
Breakthrough
Business
Performance …

MTR Safety Management System (SMS) -
Purpose
• The purpose of the Safety Management System is to
provide a workable framework for managing safety in
a systematic, proactive and consistent manner, so
that the Safety Policy can be effectively implemented
• It allows management to manage safety
systematically like all other critical aspects of the
business
• It reduces the need for “safety experts” as safety
management then becomes line management’s
responsibility
• All staff involved can talk on safety using the same
language
MTR Corporation Limited 17/10/2007 Page 25

Safety Policy
CLIMATE OF SAFETY AWARENESS
GOAL SETTING approach for
continuous improvement
Safety demands ACTIVE involvement by
all
Safety management is
LINE MANAGEMENT’S
RESPONSIBILITY
MTR Corporation Limited 17/10/2007 Page 26

SMS – Key Components
Safety Policy
Safety Tasks
and Safety
Modules
Safety
Management
Process
Staff Consultation
SMS
Safety
Responsibility
Statements /
Cards
Safety Audit
System
Safety Committees
Safety Critical
Items /
Systems
Risk Control
System
MTR Corporation Limited 17/10/2007 Page 27

Strategic approach to achieving a climate of safety
awareness
• Demonstrating commitment through leadership
• Assigning safety responsibility to individuals and
ensuring their effective discharge
• Managing the competence of staff, contractors and
other business partners to ensure they deliver safety in
all activities
• Maintaining safety communication with stakeholders
and at all levels of each business
• Promoting a progressive safety culture and involving
staff in safety improvements
MTR Corporation Limited 17/10/2007 Page 28

Strategic approach to achieving continuous
improvement in safety performance
• Using recognized modern practices and processes
appropriate to each business
• Establishing and operating a risk management system
appropriate to each business
• Implementing management systems to reduce risk to
reasonably low level
• Measuring and communicating safety performance
• Maintaining an inspection and audit programme
• Providing the necessary funding and resources
• Continuously reviewing our approach to managing
safety
• Learning from incidents in other organizations in the
relevant sectors to improve our own safety
MTR management
Corporation Limited 17/10/2007 Page 29

Risk Assessment & Management
• MTR Risk Matrix
Safety criticality R1 to R4
to quantify the risk level of
the identified risk
• RCPI
(Risk Control
Performance Index) to
keep track of risk profile
of the railway
No. of R1/R2 Hazarads
120
100
80
60
40
20
0
Trend of Risk Control Performance Index and
no. of R1/R2 hazards
Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06
800
700
600
500
RCPI value
400
300
200
100
0
No. of R1 Hazards No. of R2 Hazards RCPI
MTR Corporation Limited 17/10/2007 Page 30

Safety Responsibilities of the Executive
• Provide leadership and exercise corporate governance
in safety and health
• Ensure all Executive decisions reflect the intent and
spirit of the Corporate Safety Policy
• Establish a Corporate Safety Committee to lead the
dissemination and implementation of the Corporate
Safety Policy and Strategy
• Review and approve the annual Corporate Safety Plan
• Ensure the necessary organization and other
arrangements are in place to support the achievement
of the Corporate Safety Plan and related goals
• Monitor safety performance and risk profiles
MTR Corporation Limited 17/10/2007 Page 31

Safety Responsibilities of Staff
• All Staff
‣ Understand and fully discharge the safety and health
responsibilities pertaining to their job
‣ Observe the provision of safety rules and regulations,
act safely and report hazards and dangerous
occurrences
• Managers and Supervisors
‣ Managing safety is line management’s responsibility
‣ Must proactively ensure the systems, people,
processes, materials and environments within their
jurisdiction are managed in a systematic and effective
manner to reduce safety risks to reasonably low level
MTR Corporation Limited 17/10/2007 Page 32

Managing Safety – from Committee to the
individual
• Operations Safety Committee sets policy & strategy
• Five sub-committees
• Line management is directly responsible for safety
• Safety & Quality Department provides advice and support,
facilitates and carries out audits
• At least one item in the individual’s Key Objectives should
be safety-related
• Safety Responsibility Statement / Card for everybody
MTR Corporation Limited 17/10/2007 Page 33

Safety Communication & Promotion
• Safety is a standing agenda item in line management
meetings at all levels
• Regular safety briefings and pre-work safety talks are
held for different work teams
• Safety topics are discussed regularly at Divisional level
communications
• Compulsory agenda item for Staff Consultative Council
(SCC) and Joint Consultative Committees (JCCs)
MTR Corporation Limited 17/10/2007 Page 34

3. Integration of Safety Management with
Corporate Systems
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Operations Division
Integrated
Management
System
Safety Security
Environment
Quality Asset
MTR Corporation Limited 17/10/2007 Page 36

SMS – A Critical Part of the Integrated
Management System
Driver System Measure Goal
Leadership
System Management
• Integrated Management Review
• Integrated Audit
Policy
Manual
• Mission
• Vision
• Policy
• Objectives
System
Integration
System Management
Manual
• Quality
• Safety
• Environmental
•TQM
• Asset Management
• Project Management,
etc.
System
Implementation
Cyber
Information
• Integrated
Procedures
• Work Instructions
• Support
Documents
• Information Mall
Business
Goal
Balanced
Scorecard
Total
Customer
Satisfaction
Customer
Service
Standards
Strategic
Management
Systems
Team-driven Organization
• Management Committee
• Champion-led Teams
• Continuous Improvement Teams
MTR Corporation Limited 17/10/2007 Page 37

Project Life Cycle Safety Tasks
Budget
Approval
Particular
Specification
Contract
Award
Release
Certificate
Completion
of Contract
Concept
Definition/
Specification
Tendering
Design,
Development &
Manufacturing
Commissioning/
Warranty
Operation/
Maintenance
Renewal/
Disposal
Initial Risk
Appraisal
Pre-Contract Award Hazard
Identification, Control and
Monitoring
Post-Contract Award Hazard
Identification, Control and
Monitoring
Operations Risk Control
Review of Existing Hazards (if any)
HAZOP/PHA
Project Hazard Log
(high level)
HAZOP/PHA
Project Hazard Log
Residual Hazards
Hazard Review & Audit
Safety Report
Hazard Close out
Operations Hazard Log
Consultant / Project Team
Consultant / Contractor
/ Project Team
Operator
MTR Corporation Limited 17/10/2007 Page 38

Asset Management System in Relation to Safety
Risk management for
effective asset
management
• Asset service
criticality ranking
• Safety risk
management
• Project risk
management
MTR Corporation Limited 17/10/2007 Page 39

5. Conclusions
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Conclusions
• MTR had, as its foundations, a rule-based safety
system imported from U.K.
• As the railway and the business developed, this
approach was seen to be inadequate
• The Safety Management System which was
developed was derived from best practices in other
industries and was underpinned by the need to
develop a strong safety awareness & culture across
railway operations
• The current Safety Management System is
comprehensive, practical and company-wide
(including contractors & suppliers) is fully integrated
with other company management systems and has
delivered excellent results
MTR Corporation Limited 17/10/2007 Page 41

Conclusions, continued
• The approach to safety management has been used
as the model for the development of other
management systems, culminating in the Enterprise
Risk Management System
• A fundamental strength of the system is the wide
and deep participation of all layers of staff
• The growth of the company outside Hong Kong and
merger with KCRC present significant challenges to
the evolution of safety management system
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