Lunch Room Safety

Posted on February 6, 2013 by Julie Russell

Lunch room safety is often overlooked because it is an area where people tend to relax and converse at a personal level. The hazards within this area and the potential for harm or injury is just as high due to electrical equipment, heat sources, moisture, sharp items, chemicals, ventilation and space. Let’s look at these separately;

Electrical equipment:

This may include (but not limited to) fridges, stoves, hot plates, exhaust fans, microwave ovens, toasters, sandwich makers, coffee machines or electric jugs. These items pose a number of risks ranging from electric shock (frayed cords or misuse) to fire if left on and unattended.

To assist in mitigating risks from these items normal practices should include:

  • Test and tag all items in accordance with the relevant Electrical Safety Standards and regulations
  • Have separate storage areas for each item
  • Post relevant signs along the counter including
    • Use and storage locations
    • How to use points
    • Safety sign relevant to heat
  • Clean items regularly and keep them free of grime, moisture and contaminants at all times
  • Have relevant fire extinguishers for electrical fire

www.fire.qld.gov.au/communitysafety/home/products.asp

  • Have fire blanket for liquid based fires (oil / fat etc)
  • Replace the item if any sign of damage or deterioration of critical components

Heat sources:

All electrical items will generate heat including refrigerator motors however liquids (cooking oils etc), hot food and beverages are also heat sources that can cause harm or injury therefore care and observation is critical to mitigating risks associated with heat. Burns require immediate treatment preferably from a person trained in First Aid.

Ease of access to fire protection equipment (extinguishers, fire blankets etc) and First Aid kit is essential.

Moisture:

Moisture can come from leaking taps or pipes, spillages, condensation or as part normal hygiene practices therefore maintain vigilance to ensure wet areas are contained and dealt with quickly is highly important. Harm or injury can occur through electric shock, slips or falls and food spoilage.

When a wet area is observed the following procedure should be followed:

  • Locate the source if safe to do so
  • Ensure there are no electrical items within the wet area
  • Identify the extent of the wet area – Size, isolated or ongoing
  • Make area safe if possible
  • If small and isolated – Clean up
  • If the issue is ongoing or too large to rectify quickly
    • Cordon off the area using appropriate barriers and signs
    • Notify relevant supervisor

Sharp items:

Cutlery and discarded food cans are sources of injury from cuts or stabbing however jagged edges or protruding objects can also be an issue. A sharp object sign should be located on the appropriate storage areas

Chemicals:

Cleaning and washing up liquids, powders or tablets are dangerous substances however in the quantities used do not require signage BUT do require a current Material Safety Data Sheet (MSDS). It is adequate to have a sign in the lunch area stating that prior to using any chemical a person MUST read the label and instructions carefully AND the item MUST be used in accordance with these instructions.

Ventilation and space:

Ventilation and space are critical for a range of reasons including:

  • Transferring cooking odours or heat out of the area
  • Mitigating risk associated with gas leak, restricted air flow, heat or cold
  • Facilitating a comfortable and relaxing environment

Each State has specific regulations regarding dining facilities and in Queensland these can be found at:

www.deir.qld.gov.au/workplace/resources/pdfs/work-environment-facilities-cop-2011.pdf

Space is also important to allow people to have private conversations or their own quiet time while on their designated breaks from work.

Food safety:

All food items have expiry dates and are subject to spoilage. In a workplace where numerous people use one facility it is common for food to be left attended or in storage well past its viable state. This causes emotional tension within the workforce and has the potential to cause food poisoning.

Finally, no smoking, good manners, courteous behavior and excellent hygiene must be part of the workplace culture in the lunch area and throughout the workplace.

 

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Dangerous Goods Handling?

Posted on January 23, 2013 by Julie Russell

“I am the maintenance guy at the local school. What procedures should I follow to handle and store the pesticides, petrol and diesel we use?”

A school environment is highly vulnerable to risk because children (primary and secondary level) are curious and sometimes mischievous. This requires the school to have clear policies and procedures for all activities therefore the first process is to ensure you understand and comply with these.

Part of the school Work Health and Safety policy suite would be Work Method Statements, Standard Operation Procedures and Risk Assessment templates. Be aware of these and use them whenever required.

All hazardous goods must be entered into the organisations Hazardous Goods Register and be nominated in the Fire and Emergency Evacuation Management Plan. The organisation must also have a “spill kit” on hand to contain and rectify any spills safely.

Security and signage are two critical components of the storage question and in this instance the volume/quantities on hand will dictate the outcome.

First point is to ensure the relevant Material Safety Data Sheet (MSDS) for every item is on hand and easily accessible. The MSDS will provide the storage requirements for each volume/quantity along with all other relevant safety instructions. Note that these documents are only valid for five (5) years therefore check the date it was published and if expired source the most recent publication.

Storage of any hazardous good must include good security i.e. sturdy structure that is locked and only accessed by specifically assigned individuals. It must also have good ventilation that does not serve as an alternative point of entry and it must be located in an area where negative impacts are limited in the case of an adverse event.

The storage area must have the relevant signage externally and internally including (but not limited to)

Hazchem

Dangerous Goods sign

Flammable Liquid 3

No Smoking

No Naked Flame

What personal protective equipment and clothing should be worn

When transporting these substances they must be securely tied onto the vehicle, free from obstruction or entanglement and separated to ensure there is no unintended mixing of substances.

For storage and transporting information go to

www.deir.qld.gov.au/workplace/subjects/hazardousmaterials/dangerousgoods

Handling hazardous substances in a school environment requires adherence to best practice and constant vigilance regards children coming in contact with the substance.

www.deir.qld.gov.au/workplace/chem/dangerousgoods

The individual handling these substances must ensure they have the appropriate Personal Protection Equipment including (but not limited to)

Full length clothing (long trousers and long sleeve shirt or full cover overalls)

Gloves appropriate to the substance

Riggers gloves for fuel

Chemical gloves for pesticides

Eye protection (safety glasses or full face cover)

Respiratory aids (nose and mouth filter or a more advanced system)

Steel caped safety boots that are heat, oil and chemical resistant

To protect any third party (person or animal) the person handling the hazardous substance must erect an appropriate barrier to reduce wind effects that may shift spray or odour. When applying the pesticide or herbicide caution must be taken to ensure a number of risks are mitigated such as

Wind-drift (spray and odour)

Direct application to target

Mix is to correct label standard

Use is aligned to label

Area is isolated until after residual period

Timing of application is as per label

Containers are stored securely and out of reach while application is in progress

Regards the safe handling of combustible fuel (petrol and diesel) storage in a cool shady location and ensuring there is no potential for ignition (electrical spark, naked flame etc) is paramount.

Other factors are also important to reduce the potential for adverse events, which may cause fire or burns. These include (but not limited to)

Absolutely no smoking, naked flames or heat sources

Care when opening containers to reduce friction or a rush of backed up pressure

Care when pouring fuel

Negate any chance of spillage by using correct equipment and method

Ensure motor of equipment is off and cool

Ensure third parties are not close by

The use of fuel is probably associated with the use of machinery therefore compliance with all procedures relevant to the safe use of machinery is essential.


 

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What First Aid Kits do we need?

Posted on January 9, 2013 by Julie Russell

“Recently relocated to a larger facility. Need a first aid kit there will be no more than 15 people in the warehouse at one time and 15 people in the office at one time. What is the size required?”

The important factor here is not the size of the first aid kit but rather what type of activity is carried out by the business. To answer the question it has been assumed that the warehouse is for dry goods that are not of a hazardous nature i.e. they are stable retail type items.

Given the above assumption and the numbers provided (30 people in total) this business would be best to have two First Aid kits being

  1. Wall mounted kit –  A1083 [280mm(H) x 440mm(W) x 140mm(D)]
  2. Portable Class “B” kit – A0708 [180mm(H) x 300mm(W) x 95mm(D)]

The wall mounted kit would be located in the warehouse either adjacent to the Work Health and Safety notice board or in the lunch room. More appropriately would be renovating a designated space for a First Aid station, which would be enclosed and contain a wash basin and stretcher or bed. There should also be signs throughout the warehouse directing the people to the First Aid station.

The portable kit is best located in the office complex in an accessible location such as the lunch room or stationary storage facility. Signs directing people to the kit is essential.

At each location there must be an inventory sign out register that has the date, item taken out of the kit and who by. This is for inventory control and also a check to ensure the kit is used appropriately.

For a staff of 30 people it is strongly suggested that the business send at least three people to complete the Senior First Aid accreditation (now called Occupational First Aid) and once complete register this qualification on the employee accreditation register and in the employee’s human resource file. In addition, flag the administration system to send these employees on annual refresher courses.

If the activities undertaken by the business are of a more hazardous nature i.e. manufacturing, foundry work, chemical treatment etc then the top level First Aid kits would be required along with a well equipped shower station (for decontamination or flood wash down), First Aid station and hazardous goods response kit.

Additional signs / posters include

  • First Aid Guide – Workplace
  • Resuscitation


 

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Do I need Hazchem Signage?

Posted on December 26, 2012 by Julie Russell

“I need some sort of Hazchem signage for our room with a small chemicals safe in it? Does it depend on the quantity etc? We have 5kg bucket of Potassium Hydroxide, 2.5L of Ethanol, 5L Decon 90, 2L Glidsafe & 500ml meths. If I do then which sign, size, wording please?”

The short answer is YES you do require signage on your building, the chemical storage area and on the safe but NO it does not depend on quantities. The quantities held dictate the type of storage facilities, bunding and response kit you require. The Australian Standard 1216-206 related to HAZCHEM clearly outlines what is required in all circumstances. In summary HAZCHEM is the standard required to notify Emergency Services of

  • The type and quantity of dangerous good on your premises
  • Where it is located and how it is stored
  • What “mix” of dangerous goods you hold on your premises
  • What emergency response processes your business has in place

More importantly you are required to do the following

  1. Have a current Hazardous Goods register with all substances recorded
  2. Include these in your Fire and Emergency Evacuation Management Plan
  3. Provide a copy of your Hazardous Goods register to the Emergency Services department at the annual inspection
  4. Have the appropriate emergency response plan and “spill kit”
  5. Have signs on all major entrances to your building
  6. Have the current Material Safety Data Sheets for all of the Hazardous Goods used in the business regardless of their presence at any point in time

The HAZCHEM signs need to be located at the main entrances to your premises including

  • Front entrance gate
  • Main entrance – Front
  • Service entrance – Rear or side
  • On the entrances of your chemical storage area (cage)
  • Measurements – Metal type (BS1399) 600mm x 30mm

Other Dangerous Goods signs (metal 270mm x 270mm) include

  • Class 3 – Flammable Liquid 3 (BS2012W6)
  • Class 5 – Oxidising Agent 5.1 (BS2016W6)
  • Class 6 – Toxic 6 (BS2018W6)
  • Class 8 – Corrosive 8 (BS2023W6)
  • Class 9 – Miscellaneous Dangerous Goods 9 (BS2024W6)

The option here is to get combination signs made specifically and include the above signs on the one metal sheet (BS2002W) 600mm x 300mm and locate them beside the HAZCHEM signs.

There are additional signs and posters that either must be displayed or it is strongly suggested that they be displayed on the Company’s Work Health and Safety notice board (A1177) 1080mm x 1050mm x 50mm. These include (but not limited to)

  • How to use a Material Safety Data Sheet (poster)
  • Segregation of Dangerous Goods (poster)
  • First Aid Guide – Workplace (poster)
  • Resuscitation (poster)
  • Material Safety Data Sheet sign and containers for all individual MSDS
  • First Aid station (sign)
  • Wash Station (sign)
  • Spill kit / Emergency Response kit (sign)
  • Appropriate Personal Protective Equipment to be used with the specific substances i.e.
    • Eye protection (safety glasses or full face cover)
    • Gloves (riggers or chemical)
    • Full length clothing
    • Aprons (chemical)
    • Respiratory filters / apparatus
    • Steel cap boots (heat, oil and chemical resistant)

As part of the weekly “tool box” meeting as required under the Work Health and Safety Act 2011 it is strongly suggested that the safe use of dangerous goods be part of the agenda at least once per month. www.comlaw.gov.au/Details/C2011A00137

 

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Have you harmonised your Work Health and Safety

Posted on December 12, 2012 by Julie Russell

January 1st 2012 saw the introduction of the National Work Health and Safety Act in Queensland. The majority of businesses (and organisations) have a two year window to comply with the new Act and we are fast approaching the half-way point.

Many of the larger private sector businesses and Not for Profits were proactive in this process and were well advanced prior to January 2012. In addition, some industry associations have ensured their members are up to date with their policies and documentation. However, the vast majority of micro businesses just haven’t had the time and resources to undertake this process.

Disturbingly there have been instances where micro businesses have been approached by people purporting (either accurately or otherwise) to be specialists in the field and quoting exorbitant prices to develop a compliant system. All too frequently these proposals are prefaced with a series of claims regards the penalties for non-compliance) designed to “frighten” the business owner and create a sense of urgency.

Let’s not mince words here – This type of activity in unconscionable and needs to be exposed for what it is – Gouging!

That is not to say that non-compliance with the National Work Health and Safety Act is acceptable – FAR FROM IT – You must comply and you must achieve this within the legislated timeframe.

SO, time to take a deep breath and look at the issue practically – If you didn’t have people would you have a Work Health and Safety issue – The answer is NO – Then this is a people issue so must start with your Human Resource Management systems – YES and NO.

Your Work Health and Safety system is a part of your Company’s broader governance system therefore starts with your Company Policies then leads into the following:

  • Human Resource Management system
  • Employee Induction process
  • Work Health Safety, Environmental and Social system
  • Emergency Procedures system
  • Training and Development programs
  • Personal Performance Review process
  • Risk Management system

TCB Solutions adopts a different approach when developing a system for clients.

  • Firstly we take the time to discuss with the Managing Director or Senior Executive their strategic direction and future aspirations for the business. This is considered critical as one size does not fit all and any new system MUST be aligned with the forward direction of the business otherwise it becomes obsolete very quickly.
  • Secondly we ascertain where the current and future “pressure points” are within the business i.e. organisational culture issues, competitive advantages and competitive disadvantages
  • Thirdly we review the businesses current system to ascertain what is current, what requires modification and where gaps are evident
  • Our fourth step is the documentation of our findings and recommendations as to the system refinements required.

It is only after this process do we embark on the development of any system, which includes the development of;

  • Company policies
  • Position Descriptions
  • Associated Human Resource Management documentation
  • Work Health Safety and Environmental Management Plan
  • Employee Induction Manual
  • Work Health and Safety policies and templates
  • Fire and Emergency Evacuation Management Plan and templates
  • Training processes – WHS&E and FEEM
  • Recording registers
  • Annual Audits and reviews

As a family business TCB Solutions is acutely aware of the importance of practical solutions that improve the business on multiple levels therefore we concentrate on developing a system that our clients can leverage to get ahead of their competitors.

 

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Governance – A leverage point

Posted on November 28, 2012 by Lloyd

Corporate governance means different things to different people and sadly in most family and private businesses this is considered to be the domain of the Accountant or Lawyer. While these two critical stakeholders have a crucial role to play in the governance of your business they cannot assist with the development and embedding of the system within the businesses operations.  The reality is that the Directors and Senior Management are responsible for governance therefore have to make it a top priority.

Let’s take a step back – “What is governance?” – Broadly speaking governance is your guiding system that includes policies, procedures and processes.  Following these key aspects is the reporting, monitoring and review framework for the purposes of audit and continuous improvement.

A regular question posed to TCB Solutions is – “Why is governance important in my business?” This is closely followed by – “My Accountant does the financials to make sure I am compliant with the ATO, ASIC and OFT, so why should I complicate things”.

In responding to this we always work backwards and address the regulatory compliance statement.  True, your Accountant and Lawyer assist to ensure you don’t fall foul of the regulatory authorities.  However just what proportion of your income and company reputation is generated by this compliance process?  The answer to that question is simply “very little” therefore it is time to think of governance as a point of difference for your business.

What does TCB Solutions mean by this?

The governance system of any business should be designed in complete alignment with the strategic imperatives otherwise the resultant business model will be inefficient within the operating environment.  To assess the effectiveness of your governance system the following questions must be answered in the positive:

  1. Does my governance system positive influence the culture within the business?
  2. Are all stakeholders (internal and external) treated / managed in a consistent manner and in accordance with the Company’s policies?
  3. Can I promote my governance system as a point of difference when dealing with clients / customers?
  4. Is my Company recognised as being systemised and proactive?
  5. Does my governance system provide solutions to my clients in so far that I adhere to all contractual requirements and operate safely on site?
  6. Do I add value to my client’s projects by delivering services on time, within budget and without complications?
  7. Is my governance system simple enough to ensure all members of the workforce understand what to do and what their role is in promoting the Company’s reputation?


As we move into 2013 and beyond, especially under a tighter global economy, it will become increasingly important to the bottom line if your business can demonstrate that it has a robust governance system.  The resources and construction sectors demand good governance at the operational level because they cannot engage contractors or sub-contractors that are inefficient, cause defects, operate unsafely or do not comply with the regulators.

More importantly, ineffective governance systems open up your business to unacceptable risks from employees and the wider community.

In conclusion, a robust, practical governance system positively influences your businesses culture and when working correctly is administered by your workforce in their daily activities.

Remember – It is you, as the Director or Officer, who is carrying the most risk and responsibility therefore any system MUST manage that risk and enhance your reputation so you can successfully compete to achieve acceptable levels of return.

 

 

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Risk Management Specifically for Boarding Schools

Posted on November 14, 2012 by Ben Copeman

Definition of Risk:

A probability or threat of a damage, injury, liability, loss, or other negative occurrence that is caused by external or internal vulnerabilities, and that may be neutralized through pre-emptive action. (www.businessdictionary.com)

Essentially it refers to the probability that an event will occur (Burt, B 2001).  The bottom line is that risk will have different meanings for different people within different environments and that risk is not always bad – there is good risk (opportunities) and bad risk (the unexpected, unforeseen).

Risk from a boarding school’s perspective is not new.  Boarding schools have been in
existence since around 597AD so I would hope that by now, you have most of them identified!  The issue though, is not in identifying them; not in writing great policies that edify them; not in developing great management procedures that justifies an action to manage them; but in being able to quickly and accurately assess, predict and then mitigate a possible undesirable outcome.

Good risk management is about preparedness; about expecting the unexpected and being ready for it.  It’s about identifying any probabilities (both negative and positive) surrounding an opportunity or action; building on the positives and/or mitigating the negatives.  Risk management does not infer that negative or sinister connotations surround every action, quite the opposite.  It means that you identify the positives and build on them; identify the weak points and reduce their impacts or importance.

Even the seemingly simple task of a school becoming compliant with the proposed National Boarding Standards has some good and bad risks associated with it.  For example:

  1. Initial Assessment:  Where do you start?  Where are you strong? Where are you not so strong?  The risk here is twofold:  one, an overly optimistic assessment on the strong areas will overly skew your starting point.  Conversely, an under estimation of the not so strong areas may encourage you to under allocate resources to strengthen these areas.
  2. Putting in place a program that is reactive:  That is, it doesn’t assess or mitigate but responds after the event as most policy based risk management processes do.  The secret to good risk management is to be ahead of the game; be proactive, be prepared for the unexpected.
  3. Non compliance:  Eventually you will all feel quite positive about your ability to comply with the standards.  Standards, by definition, are guidelines to consistent performance requiring constant evaluation of performance against those standards.  To take your eye off the evaluation, will see non compliance creep (or rush) up on you.
  4. Market and Social Risk:  The school down the road can demonstrate compliance; why can’t your school?   To be able to undertake a self assessment whenever you require it, is a powerful marketing tool and will enhance your Social License to Operate within your community.
  5. Legal Risk:  Even though the proposed standards are voluntary, once accepted by Standards Australia, they will become de facto legal standards.  If there is an incident and your school cannot demonstrate compliance, the question will be raised as to why not.  And did the non compliance contribute to the incident occurring?

In addition, to these compliance risks, you still have the usual suspects:

  • Political, Economic, Social, Technological, Environmental, Legal risks – the so call PESTEL risks
  • Corporate, financial and operational risks including demographic influences
  • OH&S, fire and arson, vandalism, crime
  • Excursion risk, sick bay safety, vetting of staff …etc…etc..

Many of you saw the SCUTA Risk Management software at the ABSA conference on the Gold Coast earlier this month and commented on its predictive capacity.    SCUTA is a powerful tool that can assist you in assessing:

  1. Where to start in your journey to become compliant with the National Boarding Standards;
  2. Your ongoing compliance with those Standards;
  3. Your vulnerability to other business, social and environmental risks;  and
  4. Putting procedures in place that prevent these risks from occurring but if they do, assist you in effectively managing the consequences;
  5. The risk around an opportunity the School may be considering.

In addition, SCUTA also keep a risk register and writes a risk management plan for you.

A lot of risk management is about managing the reaction (i.e. managing consequences) but effective risk management is about preventative actions, being ahead of the game, being prepared and expecting the unexpected.

SCUTA is an excellent program to not only ascertain your vulnerability to non compliancy and associated school risks (i.e. sick bay, excursions etc) but also to assess risks associated with an opportunity and to maintain a watch on your economic, social and environmental performances.

If you wish to find out more about the SCUTA Risk Management program, please contact me at ben.copeman@iog.com.au or phone on 0431 289 366.

Ben Copeman is a risk and sustainability consultant and a Quality, Risk and Environmental Management Systems Auditor with TCB Solutions.  Based in Brisbane, TCB is a specialist corporate governance, strategy, risk and sustainability advisory firm.

Ben is also the Queensland representative for the Intelligent Outcomes Group, owners of the SCUTA Risk Management software.  Based in Adelaide, IOG is a specialist risk advisory firm working for and on behalf of Commonwealth and State Governments, large corporations and a number of not for profit organisations.

 

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What is Sustainability?

Posted on November 1, 2012 by Ben Copeman

Definition:

The United Nations defines Sustainability as: “An activity or business process that meets the needs of the present without compromising the ability of future generations to meet their own needs”.

A boarding school perspective could be: “To provide a service that is financially viable, socially equitable and environmentally acceptable”.

In its simplest form, it means “to last, to endure”.

Sustainability is a much used and in the main, a misunderstood term.   It does not mean being green nor is it totally about the environment.  It encompasses the Three Pillars of Sustainability being Economic, Social and Environmental.  It is essentially a component of good risk management and just like the term ‘risk’, sustainability has different meanings to different people in different environments.

Very few businesses (school’s included) will have a direct environmental impact.  While some boarding schools will have some direct environmental impact through emissions, management of agricultural plots, livestock, fields, gardens, fertiliser, chemical and water use, the main ‘environmental’ impacts will be through indirect uses such as energy use, waste management, supply chain impacts and staff travel and commuting.  In essence, the environmental sustainability process identifies your carbon, environmental and ecological footprint and any impacts you may have on local biodiversity.

The fortunate thing with sustainability assessments is that they are flexible; that is, they can be done as a whole and include all aspects of the business and result in a Triple Bottom Line report, or specified areas of the business can be assessed in isolation.  For example, as the above environmental issues can be assessed in isolation so can economic issues such as the costs of:

  • Energy:  Are your lights and appliances energy efficient? What do you pay per kWh?  Can you join a cluster to get a cheaper rate?  Are there technologies available to reduce energy use?
  • Waste management: How do you manage your organic waste?  Your administrative and      e-waste? Your clinical waste from sick bay?  Your wet/dry waste from the Ag plots? Most of these can be converted to what we call a zero waste system.  Not zero as in no waste at all but zero as in converting your waste to profit centres.
  • Supply chain, staff travel and commuting:  All touchy areas and better off left to discussions as to how much control you have over them and what measures you have the authority to implement.
  • Demographic impacts:  What affects (in any) will changing demographics have on future cash flows; what risks are you assuming in targeting a specific demographic?

TCB Solutions have entered into a strategic alliance with the Sydney based Carbon Reduction Institute (CRI) to enable our NSW clients to access and participate in the NSW Energy Savings Scheme.   A number of Sydney based boarding schools have already utilised CRI’s expertise to improve their energy efficiency and move toward a state of carbon responsibility or CRI’s Low CO² accreditation.   Through this alliance, TCB Solutions can facilitate and expedite access to the scheme.

Social sustainability is where a school can really differentiated itself.   While economic and environmental issues can be used to promote your corporate social responsibility (CSR) status, Social sustainability in general, really impacts on your Social License to Operate.  It is about internal communications, staff morale and culture, staff retention, attraction and succession, how your staff interact with the community your school is serving and residing in, your schools involvement with local charities and not for profits, human rights, equality and capacity building programs.

Summary

As most Directors of school boards would be aware, they assume exactly the same legal responsibilities under the Corporations Act, Fair Work Act (FWA), Workplace Health and Safety Act (WH&S) and the Environmental Protection Act (EPA) as does any other director.

In addition, when the proposed National Standards for Australian Boarding Schools become endorsed by Standards Australia, then boards will assume a de facto responsibility to ensure the school is compliant and therefore further assume a de facto legal responsibility.

This final point emphasises the fact that sustainability is another component of risk.  As good risk management is about being prepared, proactive and expecting the unexpected, real sustainability is about:

  1. Good economic and corporate governance;  (Governed by the Corporations Act)
  2. Sound and practical environmental stewardship; (Governed by the EPA)
  3. Demonstrable and equitable social participation. (Governed in part by FWA & WH&S Acts)

Together, risk and sustainability are clear examples of good management and there is a clear link between good management and business performance, increased values and community acceptance.

If you wish to find out more about how your school may start to develop a Sustainability Plan, either full or partial or even just dip a toe in the water with an audit of a specified area of the School, please contact me at accounts@tcbsolutions.com.au or phone on 0431 289 366.

Ben Copeman is a risk and sustainability consultant and a Quality, Risk and Environmental Management Systems Auditor with TCB Solutions.  Based in Brisbane, TCB is a specialist corporate governance, strategy, risk and sustainability advisory firm. (www.tcbsolutions.com.au)

Ben is also the Queensland representative for the Intelligent Outcomes Group, owners of the SCUTA Risk Management software.  Based in Adelaide, IOG is a specialist risk advisory firm working for and on behalf of Commonwealth and State Governments, large corporations and a number of not for profit organisations.   (www.iog.com.au)

 

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Employee Induction – The first operational governance and risk management tool

Posted on October 9, 2012 by Lloyd

The first and best opportunity a business has of exposing a new employee to its culture, operational requirements and risk management expectations is at the induction. HOWEVER in most instances this opportunity is lost because the process is seen as another compliance requirement that has to be “ticked off” before the resource can start working. Signs of an inadequate induction include:

  • Delegated to the HR Officer.
  • Delegated to colleague.
  • Given an organisational chart  and contact details stating “you will meet them”.
  • Delay the induction until after the person has started work.
  • Overloaded with information in short period of time.
  • Assuming the new employee will actually ask questions.
  • Senior management not showing any interest or following up on how the new employee is settling in.
  • Handed a manual without explanation.
  • Shown equipment and factory floor layout in a “quick tour”.
  • No formal safety discussion, manual or tour with demonstration.
  • No information about equipment maintenance programs.
  • No inclusion of the company’s training and development program.
  • Not allocating a person to “mentor” the new employee or allocating the wrong person.
  • Statements such as “you will pick it up as you go along”.

A well planned and structured induction process not only has to be implemented when the new employee first arrives and prior to commencing their work it MUST cover all aspects of the business. This provides the new employee the opportunity to:

  • Provide all relevant employment information and technical qualifications.
  • Complete all documentation relevant to their employment.
  • Understand how each section of the business fits into the total operation.
  • Obtain a clear perspective of their job requirements, role and responsibilities.
  • Meet the key people across all sections of the business.
  • Become aware of the physical layout and location of business units, equipment, amenities and exits.
  • Understand the range of company products and/or services.
  • Start to become aware of the company’s history, culture, values, business goals and standards.

In addition to the above the key components of an induction that transforms it from a process to a business and risk management tool include:

  • Conducted by a person more senior to the new employee.
  • Conducted over a period of two or more days with time for information absorption.
  • Comprehensive tour of the physical location including explanation of each functional section of the business.
  • Physical tour to include identification of all fire procedures, safety aspects, signage, “no go areas”, security procedures etc.
  • Explanation of how the business operates and interacts with its clients and suppliers.
  • Thoroughly explain all of the company’s policies.
  • Induction officer to ask leading questions and elicit questions from new employee.
  • Appoint a mentor.
  • Complete manual of all company administrative/operational policies.
  • Complete manual of all company workplace, health safety environment and training policies.
  • Physical demonstrations of key equipment, security functions etc.
  • Get new employee to demonstrate key components of their position including use to equipment.
  • Show new employee where critical items are located i.e:
    • Standard Operating Procedures
    • Material Safety Data Sheets
    • Personal Protection Equipment
    • Equipment Maintenance Programs
    • Inventory Control Standards
  • Agree on a regular review/monitoring program for next three months.

By adopting the above framework for all new employee inductions the business achieves numerous benefits including:

  • Quicker transition into productivity by new employee.
  • Improved business and workplace culture.
  • Improved safety record.
  • Better targeted staff training and development program linked to business improvement.
  • Employee commitment to company values and business strategies.
  • More engaged employee that applies initiative for benefit for the business.
  • Improved operational efficiency.
  • Improved equipment efficiency and inventory control.
  • Enthusiastic and sustained compliance with company policies.
  • Reduced staff turnover.
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Work in Progress – An essential management tool

Posted on September 18, 2012 by Lloyd

Work in Progress (WiP) is one of the most under-utilised balance sheet items as its primary function is to highlight future income and from this financial perspective it is a powerful tool.  However, WiP, used strategically, also adds value to multiple functions within the business.

Firstly, what is Work in Progress?  It is work that has been contracted BUT has not yet been invoiced i.e. it is the work that is officially in the system as a result of the business development and sales functions. Based on this definition, this article will explore how WiP can be used across the business functions.

Production/Operations – Work in Progress is the ultimate tool for measuring process flow and production efficiency because these operations are the true custodians of all work once contracted right through until the client is invoiced for the completed job. This is done by monitoring the flow of the work through the various activities of production. Some areas of monitoring include;

  • Speed of operations
  • Efficiency of changeover / hand over between activities
  • Bottle necks between or within activities
  • Level of waste and defects
  • Identification of job status to inform the business and the clients of progress Plus to identify what is nearing completion and ready for invoicing
  • Current and future resource needs i.e. materials, consumables and people
  • Facilitating the scheduled maintenance program for all plant and equipment

To add real value to this business function the WiP must become a focal point of the regular inter-departmental meetings. Production/Operations must be provided with an early indication of what work has been quoted/tendered and what the probability of conversion will be including possible time frames. This will enable the production team to schedule the new work and modify the schedule of the current work. More importantly it will enable the production function to inform the business on a range of matters that are not directly related to its prime function but the level of WiP impacts them. These include;

  • Human resource information such as:
    1. Individual and team performance
    2. Holidays and absences
    3. Training needs and schedule
  • Operational aspects of Workplace Health and Safety
  • Inventory control systems
  • Future capital requirements to improve production or to replace plant and equipment
  • Capacity of the facilities, plant and equipment, people and systems

Marketing/Business Development (including sales) – The number, type and quality of contacts that convert into business are the true indicators of how the business is positioned in the market and how it attracts its earnings. Work in Progress is one of the key measures of the success of these activities and provides this function with a range of information including:

  • The quality of the job in relation to the business’s core competencies
  • The standard of the information about the job including client expectations
  • Status of each job through production to:
    1. Facilitate client feedback on progress
    2. Enable the marketing function to schedule their activities
  • The ability to accurately inform production as to incoming work
  • Understanding of production capacity and capability for pricing and other purposes.

Administration – Work in Progress informs this function of what jobs are completed and it provides the relevant information for the client invoicing process. This also enables the administration processes to be implemented to:

  • Achieve compliance in relation to accounting and record security
  • Store client and supplier documents effectively for security and retrieval
  • Accurately input data into system for production of management accounts
  • Monitor and follow up on debtors and creditors.

While it is important to know how to use WiP as a business decision tool, it is critical to accurately calculate the level required so it adds value throughout the business. The process MUST be linked to the monthly income target of the business and is a multiple of this figure. The steps include calculating the individual time periods relevant to the average job:

  • Signing of the contract to start of production
  • Production to job completion
  • Invoicing to payment of account.

For example:

Step one                      3 weeks

Step two                      5 weeks

Step three                   5 weeks

Total                           13 weeks OR 3 months of income target

If your monthly income target is $200,000 then WiP must be a minimum of $600,000. By stating this as a minimum figure it brings into play the lead in time of business development activities such as client contact, quoting and contract negotiation. If this is an extended period then the WiP amounts needs to be higher.

 

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