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SUPPLY CHAIN ACCOUNTABILITY LADDER Taking the next step: Implementing a contractor prequalification program PAT CUNNINGHAM Director, Safety & Audit Services WEBINAR April 24, 2014

Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

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Ever wish you could just snap your fingers and solve the issue of supplier and contractor management? Many people see the need for a contractor evaluation program, but face very real challenges in getting one up and running. Lack of time and resources, insufficient stakeholder support, or perhaps fear of failure can put plans on pause. Additionally, it’s easy for an organization to fall into the trap of a false sense of security when there are no problems. But the reality is that no organization is immune from problems and employing organizations will be held accountable for who they hire - including third-party contractors and suppliers. You can decide to do nothing and hope for the best, or you can be proactive. Where is your company? Where are you? And how do you take the next step? This presentation details the Supply Chain Accountability Ladder to help you evaluate where you are with contractor safety, choose where you want to be, and the steps needed to improve.

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Page 1: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

SUPPLY CHAIN ACCOUNTABILITY LADDER Taking the next step: Implementing a contractor prequalification program

PAT CUNNINGHAM Director, Safety & Audit Services WEBINAR April 24, 2014

Page 2: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

The Safety Guy

‖ Who is Pat Cunningham? Masters, Occupational Health & Safety Management

Delegate to National Safety Council

VPPPA, Education Committee

Career safety professional

Loves sharing best practices

Wants to give you useful information that benefits your business and improves workplace safety for everyone.

Pat Cunningham, MS Director, Safety & Auditing Services

Page 3: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

‖ Client & Supplier Partnership – starts with Prequalification

Communicating business requirements & meshing cultures

Regulatory obligations

3-Step action plan

Adaptation of the ‘Accountability Ladder’

- Work through each rung of the ladder

- State of mind

- Activities

Questions

Agenda

Page 4: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Shared Accountability

Page 5: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

‖ OSHA Standards

Process Safety

Hazardous Materials

Permit-required Confined Spaces

Control of Hazardous Energy, LOTO

Welding, Cutting, Brazing (fire prevention)

Special Industries – Grain handling

Hazard communication

OSHA Standards

Page 6: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

“It’s not my personal or departmental responsibility.”

“I don’t have the time.”

“It’s someone else’s problem.”

“Someone else will figure it out.”

“What problem?”

“We do have a deficiency.”

“I’m part of a committee that’s working on it.”

“I am compiling a list of possible solutions.”

Supply Chain Accountability

Page 7: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

‖ Evaluate where

you are on the ladder STEP 1

Action Plan

Page 8: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

‖ Choose where

you want to be

STEP 2

Action Plan

Page 9: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

z

‖ Act! Pull together as a

team and execute a plan

STEP 3

Action Plan

Page 10: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Ladder of Accountability

Page 11: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Ladder of Accountability

‖ Universal elements

1. There is a constant need for information

Page 12: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Ladder of Accountability

‖ Universal elements

2. Accountability for information (motivation)

- External accountability

Punitive/Reactionary

- Internal accountability

Discretionary/Proactive

Page 13: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Accountable Behaviors Things that happen

because of you.

Victim Behaviors Things that happen

to you.

Let’s Climb

Page 14: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Unaware or Unconscious

‖ “What problem?”

Page 15: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Blame Others

‖ “I know we have no contractor evaluation program, but that’s someone else’s problem.”

Page 16: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Personal Excuses

‖ “If I bring it up, I might be held responsible for fixing it.”

Page 17: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

I Can’t

‖ “I don’t have time.”

Page 18: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Wait and Hope

‖ “Someone else will address the problem before something goes wrong.”

Page 19: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Accountable Behaviors

Things that happen because of you.

Keep Climbing

Page 20: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Acknowledge Reality

‖ “Nobody else is going to fix the problem, I need to commit to making things right”

Page 21: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

‖ Acknowledge Reality - Actions

Acknowledge internal deficiencies & company liabilities

Self-study - outline the problem

Benchmark with industry colleagues

Review available literature, regulatory & industry

Page 22: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Embrace It!

‖ “I’ll need to research the issues and perform a gap analysis.”

Page 23: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

‖ Embrace It! - Actions

Identify internal stakeholders

Solicit support for an internal stakeholder evaluation committee

Hold first committee meeting, outline the gaps and mission of the committee

Storming, norming, forming & performing: Divide the mission into manageable pieces, assign responsibilities

Page 24: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Find Solutions

‖ “I (we) will find solutions to close any gaps.”

Page 25: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

‖ Find Solutions - Actions

Conduct a detailed problem analysis & construct viable options

Develop a communication plan to “Socialize” the need for change, and build support for change

Determine what will be done internally and what will be outsourced

Identification of stakeholders required resources

Obtain approvals

Page 26: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Make it Happen

Let’s do this!

Page 27: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

‖ Make it Happen - Actions

‖ Don’t stand on the top rung of a ladder & don’t go it alone!

‖ Policy, protocols, employee training, supplier training, internal and external resources, repository for supplier data, verification of supplier data, develop metrics, set an incremental project timeline, auditing & establish a culture of continuous process improvement

Page 28: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Review - Action Plan

‖ Three steps to move up the ladder

1. Evaluate where you are on the ladder

2. Choose where you want to be

3. Act! Pull together as a team and execute a plan

Review – Action Plan

Page 29: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Closing comments

Become to others, “The ____ Guy or Gal“

Respect for all workers & create win-win situations

Leave a positive legacy

Page 30: Supply Chain Accountability Ladder | Taking the next step: Implementing a contractor prequalification program

Contact Info

‖ Pat Cunningham, MS

Director, Safety & Auditing Services

[email protected]

Direct: 651.724.0434

www.browz.com