CHESM Guidance

Chevron CHESM Guidance

Chevron

Contract or Healt Contractor Health, h, Envi Envi ron ronmental mental & Safety Safety Management Management Guidance Document “ One Team, Team, One One Challenge . . . Zero Zero Inci dents”

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CHEVRON CHESM GUIDANCE DOCUMENT

Prepared by the CHESM Process Advisor Owned by the CHESM Team

Updated 2008 Posted 2012

Chevron © 2012 Chevron U.S.A. Inc.

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Chevron CHESM Guidance ABOUT THIS GUIDE

This guidance is designed t o help Chevron Operating Companies and Business Units develop a comprehensive contractor safety management program. Worldwide, contractors comprise approximately 70% of Chevron’s total workforce. In many operations, contractors fulfill key leadership roles and provide work supervision at Chevron job sites. Safety is a core value for Chevron, as described in The Chevron Way. Operational Excellence, Chevron’s approach to managing employee heal th, environmental impact, safety, and reliability, has as a key objective the achievement of world-class safety performance. An effective contractor safety management program is critical to realizing this objective.

Contractors and company employees, working together, can achieve the cultural necessary to reach world-class Operational Excellence. Purpose and Objectives

The purpose of the Contractor Health, Environment and Safety Management (CHESM) process is to establish clear accountabilities, ensure active engagement of contractors, and provide a consistent CHESM program to eliminate health, environment and safety (HES) incidents and injuries among contractors. In Scope

This process defines a framework for Contractor Health, Environment and Safety Management and applies to all contractors working within the operational control of Chevron Global Upstream organizations. A contractor is defined as any company or individual that is under contract or sub-contract that performs work or provides services to or for Chevron. Operational Control

Contractor employees working on Chevron premises are within Chevron operational control. Chevron premises are locations, equipment, activities, or projects that are owned, operated, leased, or controlled through rights secured by Chevron or its joint ventures or consolidated subsidiaries. Operational control definitions can be found in OE 2007 Data Requirements and Definitions. Many OpCos provides further description of the interpretation of “operational control” within the context of their OE processes Sub-Contractors

For the purpose of this CHESM process, sub-contractors are considered part of the contractor workforce; therefore, this process does apply to s ub-contractors. However, it is the responsibility of the main contractors to ensure that their sub-contractors meet the Chevron process requirem ents. Supplemental Staff/Directly Supervised language to add Out of Scope Outside Operational Contro l language to add Personal Service Contracts

This process is not intended to be applied for personal service co ntractors (one-person contractor firms or individuals directly contracted by Chevron). Others

Other contractors are not covered by the CHESM process if, following an evaluation conducted b y the SBU HES Representative and SBU Contract/Supply Chain Manager and based upon their contract approved services, they meet all of the following criteria: 

Do not perform physical or safety sensitive work and



Are in Chevron operational control less than seven days per year

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Chevron CHESM Guidance and 

Are accompanied by Chevron employees when under operational control.

This coverage will be re-evaluated if there are any changes in the contract approved services. SBUs shall determine the HES process and procedures applied to personal service and other contractors not covered by the CHESM process. Influence Model language to add Risk-Based Appr oach

This process applies to all contractors within Chevron operational control; however, resource allocation for process implementation and management should be prioritized to those contractors performing high- and medium-risk work for the SBU/organization. Some procedures within this process are designed for contractors performing high- or medium-risk work and are not required for contractors performing low-risk work. Details about the applicability of each procedure are provided in the procedure documents. The risk classification of work associated with the individual contract shall be determined by the SBU using the CHESM Risk Classification of Work Associated with Contracts matrix. The following should be considered when classifying the risk associated with a contract or similar contracts: Potential consequence or impact Type/Nature of the work to be performed Location of the work to be performed Type/Nature of workplace hazards or impact Likelihood Duration of the work to be performed Frequency/quantity of use of contractor Contractor’s experience and expertise in performing similar type work Potential for exposure to worksite hazards Potential for the contractor performing the work to expose themselves, other contractors, or Company employees to hazards Prior experience          

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L EVELS OF DETAIL •

•

•

•

•

Expectations - “Operational Excellence Expectations” are Chevron’s Corporate-level requirements that organizations are expected to include in their contractor safety management programs. Requirements CHESM Guidance - “Guidance” is offered to clarify what was intended by the Expectations and the Suggested Practices. It is not mandated by the Corporation. As organizations build their programs, they can adopt the guidance as is; they can modify it t o suit their needs; or they can disregard what is not applicable to their particular circumstances. Suggested practices - “Suggested Practices” are offered to organizations as possible ways to improve their contractor safety management programs. Tools/Resources - Most of the tools included within the Guidance section of this docum ent are for illustrative purposes. Some come from various Chevron organizations that have used them successfully, while others come from outside organizations. It is suggested that they be modified to fit your organization’s needs. Numerous resources are identified where you can obtain additional information and assistance. Many of these can be accessed through the Web links provided. One major resource will be the Chevron Contractor Safety Management Team and Community of Practice networks

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Chevron CHESM Guidance M AJOR TOPICS •

•

•

Leadership and Accountability - Leadership and accountability are critical success factors for achieving and sustaining world-class contractor safety performance. Clearly identifying the roles and responsibilities for both employees and contractors and holding them accountable for desired behaviors and performance is the f irst major step in improving contractor safety. Contractor Engagement - A second critical success factor for achieving world-class results is contractor engagement. In the broadest sense, this means valuing contractors with the same commitment and dedication that we value as Chevron employees. It also means that contractors should be aware of the Chevron Way and the Tenets of Safe Operation. Contractor Safety Procedures - A third critical success factor for achieving world-class results is establishing a contractor safety management procedure. A contractor safety management procedure should address the full cycle relationship of Chevron and the contractor—from the initial planning stage through evaluation. There are many models currently available. The Chevron CHESM program includes five key procedures involving planning, qualification and selection, pre-job activities, works-in-progress, and evaluation.

CORPORATE OPERATIONAL EXCELLENCE EXPECTATIONS

Corporate HES and the Operational Excellence Management System Framework set forth certain enterprise-wide requirements. For contractor safety management, these expectations are shown on this page and the next—these are the requirements within contractor safety management.

CHEVRON OE EXPECTATIONS - ELEMENT 6: THIRD-P ARTY SERVICES

Systematically improve Third-Party Service performance through conformance to Operational Excellence. 6.1 A process is in place to ensure that third-party service suppliers perform to safety, health, environment and reliabilit y requirements consistent with those required of company employees when working on company property and when providing services for the company off company property in operational control. 6.2 A Contractor Safety Management (CHESM) process is in place that clearly establishes accountabilities to include: 

Identification of company contract “owners” (or management sponsors) accountable for each contract



Active engagement of contractors in implementing and improving the CHESM program

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A contractor qualification and selection process which addresses safety performance

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Pre-job work reviews and actions during work to verify scope of work, reinforce expectations and monitor compliance to requirements Periodic evaluation of contractor safety performance and assessment of the CHESM program

Suggested OpCo Requirements to meet Chevron CHESM Expectations 

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To comply with the Chevron Expectations, OpCos/SBUs should consider the following requirements: Each SBU shall maintain a CHESM Leadership Team (CHESM-LT) designed to ensure effective operation of the CHESM process. HES performance and risk shall be considered in contracting strategy. Each contractor considered for selection shall be assigned HES rating based on the scope of services as specified in the contract(s) according to the qualification procedure. Selection of contractor shall include consideration of the contractor's current HES rating and capability. An SBU standard HES exhibit outlining HES expectations shall be included in each contract. This SBU HES exhibit shall be aligned with the Global Upstream standard HES Exhibit. Contracts shall be assigned a Contract Owner who is accountable for HES performance of the contract. Similarly, SBUs shall identify a management representative of each c ontractor firm (Contractor Management Representative) who has authority for the contractor firm represented.

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Chevron CHESM Guidance 

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A set of key performance indicator targets shall be established and monitored for each high- and medium-risk contract and agreed to by the Contract Owner and the Contractor Management Representative. Contractor engagement activities designed to build HES culture for all levels of contractor personnel shall be established, conducted, and m onitored. Pre-job activities shall be held before the start of work to ensure that contractors have the appropriate procedures, risk identification, and mitigation plans in place. Interim contractor performance review shall be conducted, at a minimum, annually for high- and medium-risk contractors or more frequent if significant events warrant review. End-of-contract HES performance evaluation shall be completed for every contract within one month of the end of the contract period.

Linkages to Other OE Processes         

Incident Investigation and Reporting Emergency Management Behavior-Based Safety Risk Management Motor Vehicle Safety Leadership Accountability Contracting & Procurement Plan Contract Review Committee Category Management

. PROCEDURES

Leadership and Accountability Expectations Operating Companies must clearly establish accountability for employees and contractors and demonstrate visible contractor safety management leadership. o

Company contract “owners” (or management sponsors) must be identified for each contract. •

o

–

Participate in the full lifecycle of the contracting process, from planning to evaluation

–

Lead periodic reviews of contractor performance, identifying opportunities for improvement

Accountability with consequences must be clearly established for both contractor and Company employees for contractor safety management. •

•

•

o

Assign a Chevron contract "owner" to each (core) contractor. The contract owner will:

Establish a contractor safety scorecard for each Chevron contract owner manager/supervisor. Include contractor accountability as a Performance Agreement on Chevron PMPs, as contractor safety performance is one consideration for determining annual salary action and pay determination. Ensure contract language promotes safe behaviors and reinforces the Guiding Principles of the CHESM program.

•

Work closely with contractor management to ensure that they meet the terms and conditions of the contract.

•

Ensure the contract defines the consequences for safety performance.

•

Work closely with contractor management to ensure that they meet the terms and conditions of the contract.

•

Ensure the contract defines the consequences for safety performance.

Targets must be established for both leading and lagging indicators. •

Ensure that required targets and indicators for Corporate report:

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– – – – – •

Workforce DAFWR (employee and contractor) Workforce MVA (employee and contractor) % of organizations with a contractor safety management program % of organizations with contractor safety management improvement plan

Utilize the following recommended targets and indicators:

– – – – – – – •

Workforce TRIR (employee and contractor)

% of contractors with Chevron "owners" or management sponsors Number of joint Chevron and contractor safety meetings or forums Number and results of contractor audits—number of open and c losed items % of contractors with visible behavioral safety programs % completion of open incident investigation findings % Chevron employees with contractor safety metrics on PMPs Number of "field" visits by line management

Suggested practices •

Establish and communicate CHESM roles and responsibilities for contractors and Company employees.

•

Document and share a set of consistent, clear contractor HES expectations with employees and con tractors.

•

Make the expectations available to employees and contractors for easy reference.

•

•

•

Ensure that accountabilities are tracked and enforced. Outline accountability and ownership to ensure that everyone has the right to stop work if deemed unsafe. Also:

•

Include in PMPs

•

Tie into pay and performance, including incentives

•

Hold pre-job meetings, when appropriate, to discuss expectations and accountability.

•

o

Document and share employee and contractor accountabilities. Consider developing a detailed roles and responsibilities matrix for Chevron employees.

After selection for work, communicate the corporate expectations and accountabilities again.

•

Review roles and expectations with all indi viduals involved prior to start of work.

•

Establish and document roles and responsibilities in the written contractor safety program.

•

Include the roles and responsibilities in the job description.

•

Tie the roles and responsibilities into business plans and (scorecard) metrics.

•

Conduct training of personnel in the CHESM process.

Chevron and contractor leadership/management should periodical ly review CHESM performance and implement improvement plans. •

Establish audit frequency and scope for CHESM program.

•

Conduct audit.

•

•

Analyze results against plan. Incorporate lessons learned into performance improvements.

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Chevron CHESM Guidance o

Chevron leaders and managers should establish, provide resources for, and participate in contractor safety forums. •

o

Incorporate contractor safety forums into business planning process, operating expenditure budget, and contracts.

•

Include responsibility for operation of the contractor safety forums in the PMPs of appropriate individuals.

•

Schedule contractor safety forums up to a year in advance and build into leaders’ and managers’ calendars.

•

Communicate commitment to contractor safety to employees during forums.

Identify, shape, and track desired leadership behaviors at a ll levels to drive safety improvement. •

•

•

Use a process, such as RBL, to pinpoint, shape, and track desired behaviors. Utilize:

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ABC Analysis

–

Pinpointing behaviors

–

Measurement systems

–

Feedback and consequence systems

Track progress through use of a leader scorecard. Use 360 º feedback processes to reinforce positive changes that have been made and to identify opportunities for change.

Contractor Engagement 

Expectations Operating Companies must actively engage contractors in the CHESM process. o

Communicate Chevron Values as embodied in the Chevron W ay to contractors. •

Implement a contractor orientation program for all contractors or contract employees new to Chevron.

•

Ensure the orientation program is one in which:

•

•

–

Chevron personalizes to the contractor what the Chevron Way means to the Company

–

Chevron contract "owners" communicate the Chevron Way and Tenets of Safe Operation

–

Chevron establishes expectation that contractor actions shall be consistent with the Chevron Way

–

Contractor is advised of local procedures and processes, such as work permits, emergency response plans, incident reporting, any potential job hazards

–

Roles and responsibilities for both the contractor and the Chevron employees are clearly defined

Ensure periodic dialogue on the Chevron Way. Utilize the following dialogue prompts:

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Share what the Chevron Way means on a personal level and the impact that it can have on the organization

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Consider the compelling business case for incident-free operations

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Discuss how leaders can make it “real” to his or her organization through leadership behaviors

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Discuss possible barriers and how they can be addressed

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Discuss first steps or actions that leaders can take to begin deployment

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Create personal action plans for deployment that emphasize leadership behaviors

Utilize the following questions to engage managers and supervisors in dialogue about the Chevron Way:

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What does the Chevron Way mean to you on a personal level? What impact will/can it have on your business?

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o

How will you make it “real” to your organization through your behaviors? How will you translate and explain it so that people can understand it (e.g., what does global mean)?

–

As a leader, what are some potential first steps that you can take in order to initiate a powerful deployment of The Chevron Way?

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What barriers do you anticipate in deploying The Chevron Way?

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How can the barriers be addressed?

Ensure that the line supervisors are familiar with their OE responsibilities for contractor safety and how it relates to the OE Management System. •

•

•

•

o

–

Ensure that line supervisors, both Company and contractor, are familiar with their roles and responsibilities for contractor safety and how contractor safety relates to the OEMS. Offer OE Leadership Seminars or training for both Chevron and contractor leaders/supervisors. Communicate the local Tenets of Safe Operation to contractors and incorporate into contractor work processes. Reinforce that contractors have the authority to stop or correct any unsafe activity. All employees, both Chevron and contractor, have “stop work” responsibility within their authority.

•

Discuss local Tenets of Safe Operation at safety meetings.

•

Include Tenets of Safe Operation in the Permit to Work process.

•

Identify tenets that are violated when preparing incident or near miss reports.

Involve contractors in implementing and improving the CHESM process. •

•

Create a forum for communication between all service contractors and Chevron that will maintain an ongoing dialogue to discuss concerns, improvement opportunities, etc. Assign a contract owner to each contractor. The owner will:

–

Meet (at least) semi-annually with contractor management to: o

Mutually discuss HES results and activities, including RCA and audit findings/closeouts, progress towards IFO culture, etc.

o

Mutually set HES improvement targets

–

Participate in periodic HES assessment process and sponsor mitigation plans as needed

–

Hold the management sponsor accountable performance of contractor

•

Hold periodic sessions for recognition and sharing best practices.

•

Provide a mechanism for anonymous feedback regarding incidents and/or near misses.

•

Hold joint review of lessons learned and analyze for potential modifications to the CHESM program.

•

Make changes to the CHESM process when appropriate. Make changes to the CHESM process wh en appropri ate.

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Suggested Practices o

Conduct periodic forums with management and supervision of Chevron and all contractors. •

Maintain an ongoing forum between Chevron and all appropriate contractors to discuss pertinent safety information, policy changes, safety concerns, lessons learned, etc.

•

Streamline working relationships between and among contractors and Chevron.

•

Capture minutes of forums and distribute to Chevron and facility contractors.

•

Communicate and discuss:

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•

o

Safety statistics

–

Incidents and near misses

–

Recognition and awards celebration

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Policy/program changes

–

Contractor safety process improvements

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Findings from field safety audits

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Business plan objectives relating to safety

Ensure that all information is communicated to contractor field employees and Chevron contractor representatives.

Conduct periodic meetings between local Chevron management and individ ual contractor management. •

•

o

–

Hold proactive meetings between Chevron and contractor management to discuss “zero incidents” safety plans and performance (i.e., leading and lagging indicators). Be sure to include:

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Scheduled discussion with contractor

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Recognition to the contractor as appropriate

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Contractors’ “zero incident” plan

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Assurance to Chevron management that the contractor management “gets it” and are committed to becoming injury-free

Ensure all incidents are reviewed and discussed with local management to share lessons learned and determine corrective actions.

Hold joint Chevron employee-contractor safety meetings. •

Improve communication between Chevron and contract employees and further the “One Team, One Challenge” philosophy of CHESM by:

–

o

•

Conduct safety meetings with field-level employees from Chevron and contractors.

•

Encourage Chevron employees to attend contractor meetings and vice versa.

•

Ensure that each party shares pertinent safety information.

Chevron managers and supervisors conduct regular field visits for the purpose of discussing safety with contractors. •

Demonstrate Chevron’s commitment to safety and to assess level of safety awareness at the field level (e.g., “walks the talk”).

•

Conduct impromptu or scheduled visits.

•

Plan some visits to include contractor management.

•

o

Ensuring that contractor and Company employees hear the same message about safety

Ensure that management and supervision are prepared with a safety message that emphasizes Chevron’s commitment to “zero incidents.”

•

Evaluate work practices and discuss these with field employees.

•

Solicit employee comments and concerns.

Share local business plan objectives with contractors. •

Share relevant information regarding business plan.

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Chevron CHESM Guidance •

Ensure that contract management shares information with field employees.

•

Hold information-sharing sessions/meetings that are independent of Chevron employee meetings.

•

Align with contractor safety forums/meetings.

Planning 

Expectations Operating Companies must establish and maintain a written and v isible contractor safety process that includes, at a minimum, the following: o

o

Safety considerations must be incorporated in the development of the contracting plan (such as identification of hazards, processes, and local procedures). •

Include multidisciplinary representatives in the contracting plan process.

•

Identify specific training, qualification, and equipment requirements.

•

Establish safety and performance expectations, including fitness for duty.

Specific local strategies and plans must be developed and implemented to improve local contractor safety performance. •

Establish and track contractor safety performance targets.

•

Conduct Quick Assessment to identify gaps and prioritize opportunities for improvement.

•

Solicit and document input/feedback from contractors.

•

Seek opportunities to minimize the number of contract companies.

•



Coordinate with Global Procurement and determine if there are any global agreements in place to perform the work.


Identify the scope and nature of work to be performed. •

o

Fully define the nature and scope of the work to be completed, including the identification of:

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Potential generation of emissions and wastes

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All potential hazards or risks (including HAZOP studies)

–

Regulatory reporting requirements

–

Required PPE and other safety equipment

–

Work schedules

•

As necessary, update required engineering/process flow diagrams.

•

Determine any special requirements or qualifications.

Conduct risk assessment of work to be performed. •

•

Conduct risk assessment to identify the likelihood of an event occurring and the potential impact. Consider using a risk matrix to quantify risk. Incorporate results into pre-qualification criteria including:

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Nature of the work materials to be used

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Location of the work

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Potential exposure to worksite hazards

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Potential exposure to hazards for all personnel involved in the activities

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o

–

Exposure to negative publicity

Based on the nature of work and risk assessments, determine if the contractor will be fully responsible for all instructions and supervision or whether it is the responsibility of Chevron. Also:

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Specify in the contract the reporting relationships between Chevron and contractors

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Avoid joint Chevron/contractor responsibilities

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Identify key individuals responsible for critical activities

Develop a contractor incentive program. •

•

o

Potential consequences of incidents (e.g., environmental damage, delays of project development, dela y in production operations, legal claims)

Establish strategy for contractor management based on risk. •

o

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Reward continuous safety improvement of the contract company and recognize contract employees’ safety behaviors and performance. If used, incentive programs should:

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Not discourage or suppress the reporting of incidents

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Be proactive and reward effort (e.g., perform audits and follow-ups rather than using “after-the-event” statistics)

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Ensure that incentives are valued by p ersonnel who are in a position to influence the performance and maintain the systems

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Be culturally sensitive to local environment

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Motivate personnel to change those behaviors that detract from safety performance

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Appreciate the safety culture of the contractor

Integrate lessons learned into the planning cycle. •

Include previous post-job evaluation information (from Chevron and contractor).

•

Utilize CHESM Network to document lessons learned and identify opportunities for improvement.

•

Conduct Safety VIP Workshop in Phase 2 of capital projects.

Conduct Safety VIP Workshop in Phase 2 of capital proj ects. Qualification & Selection 


Safety expectations and requirements must be clearly communicated to the contractor prior to the contract execution. •

Determine contractor HES performance criteria as a function of risk of the particular work to be performed (e.g., the higher the risk associated with performing the work, the more criteria should be applied).

–

Minimum required criteria for review: o

Incident rate performance (e.g., DAFW, TRIR)

o

Incident investigation program, including root cause analysis program

o

Drug and alcohol program

o

Management commitment

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Chevron CHESM Guidance –

•

o

•

•

•

Job safety analysis program

o

Subcontractor management plan

o

Training and certification programs

o

Behavioral based safety program

o

Short Service Employee Program

o

Contractor-owned equipment integrity program

o

Self-auditing process and field reviews

o

Fit for duty

o

Industrial hygiene

Communicate to the contractor the acceptable level of safety performance.

Develop and utilize an OPCO- and/or BU-consistent process to gather safety information and evaluate contractors prior to work commencing. Develop and use a questionnaire to gather HES pre-qualification/re-qualification data on each contractor. Validate qualification information received from contractor via audits, interviews, etc. If misleading information is intentionally submitted (as discovered through audit), action will be taken up to and including cancellation of the contract. Conduct a safety assessment and rating to determine if contractors’ safety programs and performance are acceptable for the type of work to be performed. The safety rating should consider the following:

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Analysis of contractor pre-qualification data submitted

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TRIR, DAFW, etc.

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Results of validation o

Field feedback

Safety considerations must be incorporated in the development of the contracting plan and final contract (such as identification of hazards, processes, and local procedures). •

•



o

The contractor qualification and selection process m ust address safety performance considerations. •

o

Recommended criteria for review (but not limited to):

Include safety expectations (e.g., HES contract addendum) as part of all contract language for service contractors. Ensure that the expectations are clearly communicated by contractor management to the employees that perform work on Chevron locations.


Use a Request for Information process for early screening of potential co ntactors. •

•

o

Conduct an initial screening by providing potential contractors the scope of work to be performed and Chevron’s safety expectations. Contractors submit safety program and performance data, as well as confirming their capabilities to perform the work consistent with the safety expectations. Use an assessment process to decide which contractors qualify for the bidder’s list. Maintain

Maintain an approved contractor list. •

Approved contractor list must be maintained with current safety and performance data.

– •

A time frame should be established to review and renew the safety data (e.g., every 1 to 3 years)

As part of the safety performance review, consider adding guidance for when it is appropriate to remove a contractor from the “approved” list.

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o

Provide expectations for when and how a contractor can be added back to the list.

Ensure contractors apply HES requirements to subcontractors. •

•

HES’ contract language should require the subcontractor to comply with all the same requirements as the main contractor. OPCO and BU’s shall develop and communicate subcontracting expectations, which will hold primary contractors accountable for their subcontractors and ensure coordinated safety processes are used on location. Also:

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For ongoing work, require the contractor to notify Chevron work owner when contractor will be utilizing subcontractors

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For project proposals, require contractors to submit subcontracting plan, including: o

Products and services that will be subcontracted

o

Selection criteria to be used to select subcontractors

o

Plans to ensure HES performance from subcontractors

Pre-Job Activity 


Assign Company and contractor representatives as key management sponsors to ensure a communication forum exists for resolving safety issues as necessary to meet performance expectations. •

•

•

Assign Company and contractor representative for each contract to plan and manage the day-to-day work. Conduct regular meetings between the Company and contractor representatives during the pre-job, works-inprogress, and evaluation phases of contractor work. Topics for meeting discussion should include:

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Safety plans

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Work plans

– Resources – Schedules



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Qualifications and training of personnel

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Equipment calibration and condition (fitness for use)

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Work and personnel monitoring

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Safety tailgates/meetings with workforce (e.g., Tenets of Safe Operation, lessons learned, and IF reports)

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Feedback to workforce from incident or near miss investigations

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Discussion around project changes or issues affecting the work

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Emergency drills

o

Have a process to report, investigate, follow-up on, and share lessons learned on serious incidents including near misses.

o

Periodically conduct CHESM audits and performance evaluations of contractors.

Suggested Practices o Conduct “pre-job meetings” with contractors prior to start of work. •

Conduct a pre-job meeting whenever jobs are:

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Chevron CHESM Guidance –

Significant in nature (e.g., large construction projects, painting and blasting projects, projects involving explosives, confined-space entry work, rig mobilizations, coil tub ing, radiation-related work) Or

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High-risk work that poses special hazards (e.g., hydrogen sulfide gas; working from heights; Lock Out, Tag Out; electrical in classified areas; involvement of multiple contractors or hazardous materials)

Note: these lists are not all-inclu sive, and other proj ects not l isted may need a pre-job m eeting as determined By Company and contractor representatives. •

Address the following (at minimum):

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IFO Commitment and HES Requirements (The Chevron Way and Tenets of Safe Operation)

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Scope of work

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Safety and detailed work plan

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PPE

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Worker qualification and training

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Work permit and safety procedures

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Equipment calibration and condition

– Logistics

•

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Communications between parties and emergency contacts

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Review of known hazards

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Emergency response plan

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Emergency drills

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Incident reporting and investigation

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Contractor performance evaluation

Cover the following topics, if applicable:

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IFO Commitment and Stop Work Authority/Responsibility

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Operational Excellence Tenets

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Management/work owner personal commitment

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Incident and near miss reporting requirements

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Root cause analysis

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Post-job evaluations

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Work-in-progress field reviews

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Job Safety Analysis

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Behavioral based safety observations

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Emergency response

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Hazard Communication Program

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Training documentation on all employees

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SSE Policy—2-4 person crews can not have more than one SSE and 5-or-more person crews, no more than 20 percent. Identifier and mentor required

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Personal protective equipment: o

Eye and face protection

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Hardhats and hard-toe footwear

o

Hearing protection

o

Specialty items (e.g., gloves, respirators, goggles)

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Work permit requirements

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Lock Out, Tag Out

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Hot Work

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Work at height (over 2 meters)

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Electrical work in classified areas

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Confined-space entry

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Drug and alcohol policy

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Management support and commitment

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Smoking policy

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Fall protection requirements/rescue capabilities

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Crane/heavy lifting operation requirements

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Back safety/lifting policy

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Waste handling plan

– Housekeeping Equipment inspections

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– Subcontractors Safety meeting requirements

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– Trenching/excavation o

Develop a “safety plan” for all work/projects that involve contractors. •

Include the following in the s afety plan:

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Overall commitment, expectations, and goals

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Orientation to: o

OE Tenets of Safe Operation, including Stop Work Authority/Responsibility

o

Behavioral based safety process

o

Harassment policies

o

General and site-specific hazards

o

Emergency equipment

o

Emergency response

o

Business Unit Contractor Safety Plan

o

Incident/illness reporting

o

Personal protective equipment

o

Key safety processes

o

Hazard Identification •

Identifying hazards

•

Assigning risk/impact rating

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•

Validate training for all contractors prior to performing work. Work agreements, contracts, and Contractor Safety Evaluation Questionnaires shall include prescriptive minimum training requirements, including: Expectations for all contractors

– o

Prescriptive minimums

o

Job specific

o

Fit for duty process Specific Chevron and contract supervisor training

– o •

Developing elimination/mitigation plans

Tracking mechanism

Require contractors to have documentation, such as:

– Passport Smart card (encoded chip)

–

– Other o •

Must show validation on site

Be sure to cover:

–

Drug and alcohol policy

–

Short Service Employee process

–

Behavioral based safety process

–

Permit to Work process

–

Hot Work process

–

Work at heights (over 2 meters)

–

Electrical work in classified areas

–

Heavy lifting

–

Emergency plans

–

Lock Out, Tag Out

–

Confined-space entry process

–

Material handling plan that describes the project objective and the manpower and resources required to complete the project, including any HES requirements for safe operation related to material handling

–

Waste handling plan that describes the safe handling and disposal of all generated waste and the resources required to complete the project. The specifics of this plan are recommended to be developed at the BU level and should be consistent with the Business Unit Waste Management Plan.

–

Near miss and incident reporting

–

Contingency plans

–

Audit process

–

Management visits—Company and contractor

– Trenching/excavation Note: The key practices may change and additional practices may be added depending on job type and associated risks. A description of the elements follows in the plan.

Page 17 of 27


Develop “detailed work plans” for all work to identify required manpower and resources to complete identified work. •

Include the following in the detailed work plan:

–

–

–

Job scope o

Project objective(s)

o

Manpower planning, persons on board, duration

Reference documents o

Project execution table and sign-off sheet

o

Project team contact list

o

Material order list

o

Drawings and other reference documents

Project coordination o

–

–

o

Defines roles and responsibilities of personnel involved in the project, such as Operations, Chevron on-site representative, key contractors, and engineers

Project procedures o

HES’ expectation of Company and contractors. This may include Hot Work procedures, SIMOPs, NORM, Heavy Lift practices, etc.

o

Contractors’ safety responsibilities

Work task o

Project execution procedure at the “macro” scale—not intended to substitute for detail execution and SIMOP Plans

o

JSA elements and perceived hazards for each step along with mitigations for those hazards. The appropriate personnel should initial each task after completion

Ensure that a contractor short service employees (SSE) process is in place. •

Establish a process to ensure contractor personnel with less than 6 months experience in the same job type or with their present employer (i.e., short service employees) are identified and appropriately supervised, trained, and managed to prevent accidents, such as p ersonal injury, injury to others, environmental damage, or property damage. SSE process should include the following:

–

SSE personnel should be visibly identified

–

Contractors should monitor SSEs for HES awareness

–

Crews of more than 5 should not have more than 20 percent SSE personnel. Crew sizes of less than 5 should have no more than one SSE

–

The proposed crew make-up should be outlined in the “Contractor Short Service Employee Form”

–

Contractors should have in place some form of mentoring process, acceptable to Chevron, designed to provide guidance and development for SSE personnel

–

Contractors should manage their subcontractors in alignment with this process

Work in Progress 

Expectations Operating Companies must establish and maintain a written and v isible contractor safety process that includes, at a minimum, the following:

Page 18 of 27


Have a process to report, investigate, follow-up on, and share lessons learned on serious incidents including near misses. •

o

–

Incident overview

–

Restart criteria

–

Immediate corrective action taken

–

Formation of a team and use RCA to investigate

–

Follow-up plans and audits and close corrective actions

Periodically conduct CHESM audits and performance evaluations of contractors. •

•



Include local management reporting for Chevron and all contractors. Also refer to the local OPCO and BU and Chevron Corporate reporting policies. Each Business Unit will also require contractor owners/senior management to communicate with the OPCO and BU VPs within 24 hours of a L WD incident or a significant environmental incident. A meeting will be set up as soon as reasonably possible to address the following issues:

Conduct a system review of the CHESM program:

–

Leadership and Accountability

–

Contractor Engagement

–

Contractor Safety Processes

Conduct a system review of documentation and procedures used by contractors:

–

Training records and description

–

Safety meeting minutes

–

Safety plans

–

Work permits

–

Drug and alcohol screening results and follow-up

–

Certifications (e.g., certified welding, radiography)

–

Contractor internal audit results

–

Incident rates

–

Incident investigations

•

Conduct audits on a per-project basis and/or annually for “force” contractors.

•

Use audit results in performance evaluations.

•

Evaluate contractor performance against stated objectives and expectations. Also:

–

Develop improvement plans as appropriate

–

Communicate the results of evaluation to both Chevron employees and contractors


Conduct daily tailgate and regular safety meetings. •

o

Have foreman gather crew at beginning of shift to:

–

Distribute sign-in sheet

–

Discuss daily work schedule

–

Discuss hazards of work to be performed

–

Discuss actions to eliminate or minimize risks

Actively participate in a behavioral based safety program.

Page 19 of 27


•

•

Determine, at the OPCO and BU level, which contract companies are required to have their own behavioral based safety program. Set expectations on activity and participation level. Include in expectations that the observation program is for everyone. It is critical to promote an environment that encourages Chevron employees to be observed by contractor employees.

•

Ensure crew actively participates in observations and shares observations at daily safety meetings.

•

Establish a process to track contractor behavioral based safety activity level.

•

Analyze observation data, identify “at-risk” trends, and build action plans.

•

Publish behavioral based safety data.

•

Identify best practices from OPCOs, BUs, and contractors. •

o

Conduct Job Safety Analysis. •

Systematically review:

–

High-risk work

–

Infrequently performed jobs

•

Periodically review frequently performed tasks.

•

Identify and mitigate safety hazards before the tasks commence.

•

o

Ensure accountability. Evaluation of an effective behavioral based safety program should impact contractor rating.

Ensure that JSAs involve five phases: (1) selecting the job; (2) forming the JSA team; (3) breaking down the job into steps; (4) identifying potential hazards; and (5) developing solutions. These phases:

–

Give a common understanding to everyone about what it takes to do the job safely

–

Are an effective training tool for new employees

–

Provide key elements to be included in safety checklists, pre-job briefings, safety observations, and as safety meeting topics

–

Assist in writing safety procedures for new or modified jobs

Provide on-site safety monitoring for large jobs. •

•

•

Dedicated monitors provide additional focus and can monitor the implementation of the HES processes for the project. Observers can also provide on-site training on the various processes. Roles and responsibilities of the observers should be clearly described and widely shared. Some example roles and responsibilities include:

–

Provide behavioral based safety observations

–

Coordinate tracking and sharing of observations

–

Mentor others in making observations

–

Audit HES processes

–

Provide training on various HES processes

–

Assist in tailgate and safety meetings

–

Assist in JSA development

–

Participate in RCAs

–

Assist in on-site orientations

Page 20 of 27

Chevron CHESM Guidance – •

o

–

Focus on work permits, PPE, special procedures (e.g., hot tapping, confined-space entry)

–

Report on findings to Chevron responsible parties, work owner, or management sponsor

Ensure contractor has internal process, such as checklists for field reviews (form).

•

Develop a process to tie results of field reviews into contractor evaluations.

•

Develop a tracking mechanism.

•

Provide feedback to contractor in the field.

Conduct management field reviews. Management should:

–

Routinely visit job sites to assess for safety compliance. This should occur in both large and small jobs

–

Come with a safety message that is unscheduled/impromptu

–

Plan some visits to include contractor management

–

Participate in routine safety audits

Establish a drug and alcohol m onitoring program. •

o

Perform daily field reviews on all contractors to:

•

•

o

For large capital project, a full-time HES manager should be considered.

Conduct field reviews. •

o

Verify that SSEs are receiving mentoring

Ensure the program involves the following elements:

–

Pre-employment screening

–

Random testing

–

Probable-cause testing

–

Post-accident testing

–

Awareness training for contractor supervisors/employees

–

Compliance with local legal requirements

Include contractor activities within the facility Management of Change (MOC) procedure. •

Use the facility or BU MOC procedure to evaluate hazards associated with changes involving contractor work, for example:

–

Changes by Chevron to scope of work involving contractors after work has begun (e.g., change orders executed by contractors)

–

Changes by contractors to process equipment or scope of work

–

Substitution of subcontractors

–

Changes in contractor-supplied equipment

Evaluation 

Expectations Operating Companies must establish and maintain a written and visible contractor safety process that includes, at a minimum, the following:

Page 21 of 27




Have a process to report, investigate, follow-up on, and share lessons learned on serious incidents including near misses. •

Utilize CHESM Network to communicate lessons learned and research opportunities for improvement.

•

Integrate learning’s from RCAs and IF Reports into CHESM plans.

•

Conduct a joint Chevron/contractor review session to share and document lessons learned.

•

Use the CPDEP Lessons Learned Documentation Matrix.

•

Incorporate lessons learned into qualification and selection phase.

•

Share lessons learned at periodic safety forums.

Suggested Practices Conduct joint post–job evaluations. o •

•

o

Summarize contractor CHESM audits, performance evaluations, and RCA findings from works-in-progress phase. Provide mutual feedback in a final, joint meeting on:

–

General tenor of relationship

–

Lessons learned and how they can be applied in future contracts

–

How future contracts should be structured

–

Project Safety Plan Lookback

•

Incorporate evaluation information on the contractor to be added as a reference for Chevron bid list.

•

Incorporate any new hazards identified in the hazard identification and evaluation process for future contracts.

Evaluate lessons learned and incorporate into future qual ification and selection. •

Recommend utilizing PRC electronic form, including:

– Title –

Lesson learned

–

What happened

–

What should have happened

–

What was the business impact

– Recommendations – Contacts –

Project information

•

Share information with groups (Chevron employees and contractors).

•

Ensure process complements OE best practices and lessons learned processes.

Roles and Responsibili ties

The following table outlines the roles and responsibilities associated with this process

Page 22 of 27


Measurement and Verific ation Measurement

The following metrics shall be tracked to determine that the CHESM process is effective in meeting its stated purpose. Measures shall include the following: Leading Measures Percentage of contracts using higher rated contractors:

The purpose of this metric is to measure the use of highly qual ified contractors compared to the overall number of contractors used within the SBU/organization. The ultimate objective is for 100 percent of the contractors used by GU organizations to be either “A-” or “B-” rated contractors. The HES rating of contractors is defined i n detail in the qualification procedure. The percentage value is calculated from: Active Contracts Having High Rated Contractors Total Number of Active Contracts Requiring an HES Rating

Percent compliance with Interim Review requirements: The purpose of this metric is to ensure that interim reviews are conducted. This measure will also support and verify contractor engagement and work-in-progress activities. The percentage is calculated from: Total Number of Interim Reviews Conducted Total Number of Reviews Required Lagging Measures

Lagging measures include: Contractor Total Recordable Incident Rate (T RIR) Contractor Days Away From Work Rate (DAFWR) Verification

The following steps shall be conducted to verify process performance. Review of Process Effectiveness

The SBU CHESM process sponsor and process advisor shall revie w and verify that all parts of the CHESM process are effective in fulfilling relevant OE expectations and the CHESM process purpose. The internal review shall be performed at least annually. The review should cover the subjects listed in the CHESM Quality Fitness Review (QFR). Audi t o f Pr oc ess Eff ect iv enes s

The SBU CHESM process sponsor and SBU CHESM process advisor shall verify adherence and identify nonconformance to the CHESM process as designed and documented. A documented audit of the CHESM

Page 23 of 27

Chevron CHESM Guidance process shall occur at least once every two years and shall be based upon documents and records. A CHESM Quality Fitness Review (QFR) is provided to assist with these audits. Continual Improvement Plans

Process gaps, nonconformance, and improvement opportunities identified from Review of Process Effectiveness and Audit of Process Effectiveness shall be summarized and used to assist in building continual improvement plans.

Continual Improvement

The following shall occur to improve the OE process. Gap Analysis

The SBU process sponsor and process advisor shall prioritize CHESM process performance gaps, nonconformities and unfulfilled OE expectations which are id entified as part of the OE process measurement and verification step. Consider GU or operating company, directives, risk, resources, and other SBU factors. Combine and prioritize improvement opportunities for all OE processes. Linkage to Annual Business Plan

Each SBU shall have an annual continual improvement plan that is based upon gaps identified during the measurement and verification of the process. Contents

The Continual Improvement Plan for OE processes shall identify the follo wing: • • • •

Improvement opportunities and gaps to be closed Resources required Responsible person(s) Timing and milestones for improvements

Page 24 of 27

Chevron CHESM Guidance Attachment #1

B UILDING ORGANIZATIONAL C APABIL ITY TO IMPROVE CONTRACTOR S AFETY

The CHESM Guidance Document addresses all six areas of Chevron’s Organizational Capability, either through defining required elements or through the implementation process. The consistent implementation of a common approach across Chevron is critical to developing the Organizational Capability to deliver the bottom-line results we seek. will it take to get us there? DYNAMIC L EADERS •

•

Executive leaders will sponsor implementation in a manner that aligns people, inspires innovation, and shapes top performance. Supervisors and managers will lead the changes:

–

Model the desired behaviors

–

Establish expectations, performance metrics, and goals

–

Define roles and responsibilities

–

Participate in periodic contractor safety forums

–

Provide reinforcement to employees and create the environment that fosters early reporting

•

Safety and Reliability Leadership Sessions will be offered.

•

Performance-Based Leadership (PBL) training is available.

SKILLED EMPLOYEES •

•

Contract owners, contractor representatives, and supervisors will gain additional skills. They will:

–

Recognize the importance of contractor safety and their role and responsibility in managing performance

–

Understand the full lifecycle of contractor management from the initial planning phase through evaluation

–

Establish performance metrics, targets, and expectations fro contractor safety

–

Conduct periodic reviews of contractor safety performance

–

Be able to model, recognize, and reward desired behaviors

Contractors will also add to their skills set. They will:

–

Understand The Chevron Way and Tenets of Safe Operation

–

Align their safety programs with those of Chevron to improve overall site safety

L EARNING AND INNOVATION •

•

The CHESM Network will enhance learning and innovation by:

–

Facilitating the sharing of ideas among various Chevron organizations

–

Including contractor representative in the CHESM Network

–

Using a website to allow online discussions and for maintaining the Networks’ institutional memory

–

Owning and updating Corporate guidance as new tools and approaches are developed

The CHESM forums will proactively engage both Chevron employees and contractors.

Page 25 of 27

What

Chevron CHESM Guidance RECOGNITION AND ACCOUNTABILITY •

•

•

•

Business plans, organizational metrics, and individual PMPs will support the key factors for CHESM performance improvement and provide opportunities to celebrate success. The CHESM Sponsor Committee (a subset of the HES Steering Council) is responsible and accountable for oversight of the Network and for raising any signif icant issues to corporate management. Metrics will be periodically reported to the Corporation. The Accountability Tool provides information on creating opportunities for learning about performance—a critical input to holding people accountable—and tips on following up on key actions and how you can demonstrate personal accountability for Safety and Reliability. The tool also provides concrete ways to ensure that employees at all levels receive the right guidance and are held accountable for meeting targets and questioning tips to use at each OEMS step.

WORLD-CLASS PROCESSES AND ORGANIZATION •

•

The CHESM Guidance Document provides the guidance along with tools and other resources to help OPCOs and BUs to develop world-class programs for their organizations. Organizations will use processes, such as CPDEP for Change, to perform an implementation gap analysis and develop action plans.

TECHNOLOGY AND P ARTNERSHIPS •

•

•

Use of knowledge management tools and NetMeeting will allow collaboration of contractor safety specialists around the globe. Alignment of Chevron safety programs and contractor safety programs will result in closer working relationships and a common understanding of what it takes to be s afe. Organizations will partner with Global Procurement to leverage contractor relationships across Business Units and Operating Companies.

Page 26 of 27

Chevron CHESM Guidance Attachment #2 CHESM GUIDING PRINCIPLES

Achieving world-class contractor safety performance means a cultural shift for both Chevron employees and contractors. The success of that shift depends on the strength of our combined leadership and accountability, and the speed of the shift is enhanced by following these CHESM Guiding Principles: S AFETY IS V ALUE -B ASED, NOT J UST PRIORITY-B ASED

Safety is not in competition with organizational priorities of cost or schedule. Safety is never compromised for any circumstance or in any situation. If it can not be done safely, then it will not be done. ALLIANCE (OR J OINT IMPERATIVE)

Effective safety implementation and improved safety performance is an imperative shared by Chevron a nd the contractor. Both teams must visibly demonstrate their commitment through leadership behaviors. INCIDENT- AND INJURY-FREE CULTURE

Chevron, contractor management, and the employees of both are committed to promoting an incident- and injury-free culture. We work together to eliminate barriers and obstacles. V ALUE OF PEOPLE AND COMMUNITIES

Each task is performed with respect for the inherent value of our fellow employees, contractors, visitors, vendors, customers, and communities in which we work. Both Company and contractor management demonstrate this respect by focusing on continuous improvement of safety behaviors involving the entire workforce, from craft workers and operators to management. The focus is on people and not numbers or statistics. With every person, employee, and contractor alike, committing to and implementing these principles in a proactive manner, Chevron can prevent injuries and incidents.

Ac hi evi ng world-class co nt ract or safety performance means a cult ural shift for both Chevron employees and contr actors . . . Success depends o n the str ength of our c ombined leadership and accountability.

© 2012 Chevron U.S.A. Inc. Page 27 of 27

CHESM Guidance

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