Using Operational Audits as a Continual Improvement Tool - Regulator's Perspective

Using Operational Audits as a Continual Improvement Tool - Regulator's Perspective [PDF 264 KB]

Using Operational Audits as a Continual Improvement Tool - Regulator's Perspective

Ken Colosimo

Technical Leader, Audit

Operations

National Energy Board


ken.colosimo@neb-one.gc.ca
Tel: 403-292-4926

Pipeline Safety Forum

2 June 2015

 

Session Objectives

  • Understanding Concepts and Requirements (KC)
  • Understanding Changes Required if Continual Improvement Outcomes are Incorporated into Internal Audits (KC)
  • Sharing Information regarding “Driving Continual Improvement through Audits” (AE)

 

Continual Improvement - Concept

  • Continual Improvement (simple definition)
    • On-going practice of making or becoming better or improving quality
  • Continual vs Continuous Improvement
    • Continual = stepwise/periodic
    • Continuous = on-going

 

Continual Improvement - Requirements

  • NEB has consistently promoted Continual Improvement since 1999 (+/- 16 years)
  • 2013 OPR update formally included “Continual Improvement” in the regulations
  • 2013 OPR update also contains requirements that support continual improvement practice

 

Continual Improvement - Requirements (continued)

  • OPR 6.5(1)(x)

 

A company shall, as part of its management system and the programs referred to in section 55, establish and implement a process for conducting an annual management review of the management system and each program referred to section 55 and for ensuring continual improvement in meeting the company’s obligations under section 6.

 

Continual Improvement - Linkages

  • 2013 OPR update - continual improvement links
    • Goals, Objectives, Targets and Performance Measures
    • Focus on identification and management of hazards, potential hazards and near-misses
    • Establish data management systems for monitoring and analyzing the trends in hazards, incidents and near-misses
    • Evaluate the adequacy and effectiveness of MS, programs and processes

 

Understanding the Regulations Continual Improvement

  • as part of its management system ... establish and implement... a process for ensuring continual improvement in meeting the company’s obligations under section 6.
  • A company shall establish, implement and maintain a management system that is systematic, explicit, comprehensive and proactive...
  • Continual Improvement must therefore be: explicit, proactive and ensured

 

Continual Improvement - Present Observed Practice

  • Continual Improvement is generally considered implicit in management practices and management systems
  • Improvement is measured usually in changes to #’s of failures or NC’s (not better ways to do something)

 

Internal Audits - Observed Present Practice

  • Audits focus on Compliance and Conformance
  • Objective reviews of practices and procedures not necessarily included (usually compliance to Regulations)
  • Formal measurement of Continual Improvement is limited to measures of #’s of non-conformance/compliance

 

Audits & Continual Improvement - Observations

  • Audit owners/Management should change audits with respect to what is audited and how audits are conducted e.g.:
    • direct auditors to include an evaluation of the MS, programs, processes and practices from the perspective of best/better or appropriate practices
    • direct auditors to include an evaluation of on-going long/medium and short-term measures of performance and outcomes not on change in #’s of NC’s
Date modified: