KPIs for Safety Management
Why use KPIs in managing safety in the organization?
1. KPIs can prevent major incidents – when leading KPIs turn red, they outline an increased possibility of certain risks to occur. Actions can be taken to prevent the event.
2. KPIs improve reliability – preventing incidents makes operations more reliable and ensures production cycles without interruptions. This reflects directly in the company’s financial performance.
3. KPIs avoid complacency – since major incidents are rare, there is always the risk of giving more attention to lower consequence risks in the belief that things are fine. KPIs can sent warnings for all types of incidents.
4. KPIs communicate performance – KPIs keep the management focused, they ensure transparency and facilitate progress.
Examples of safety KPIs are:
- # Recordable injury frequency (incidents per 200,000 hours worked)
- # Lost time injury frequency rate (LTIFR)
- # Lost time incident ratio (LTIR)
- % Fatal accidents
- # Severity rate (SR)
- # Duration rate (DR)
- # Sickness absence days per full time equivalent
- # Non-compliances with legal standards in safety inspections
- % Safety equipment checked per schedule
- % Health, Safety and Security (HSS) trainings completed
Another instrument for managing safety are dashboards, as they provide visual support for data and enhance the decision making process for daily operations. According to the International Association of Oil & Gas Producers, cascading dashboards through the company ensures KPI visibility at all decision making levels.
In the above picture, dashboards are cascaded from the corporate perspective over the business to the lowest level – a shift dashboard. In this way all managers can base their decisions on concrete data and take action to prevent incidents from taking place.
More information about HSSE KPIs can be found on: http://www.smartkpis.com/kpi/functional-areas/hsse-health-safety-security-and-environment-/
- BP (2012), Annual report 2012
- International Association of Oil & Gas Producers (2011), Process safety – Recommended practice on KPIs
- smartKPIs.com (2013), KPI examples