Risk In the Value Stream at United Airlines. Mike Quiello

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1 Risk In the Value Stream at United Airlines Presented by: Mike Quiello VP Corporate Safety, Security, Quality and Environment 1

2 Agenda Overview Risks Systems/Tools Performance Summary 2

3 United Airlines A Brief History 1930 s Today Tomorrow 3,300 flights/day 844,000 Passengers/week 46,000 Employees 359 Aircraft 230 Locations 26 Alliance Members 3

4 United Today Aircraft Fleet Seats Range A ,700 nm A ,000 nm B ,900 nm B ,385 nm B ,670 nm B ,260 nm B787 25* TBD 7,650 nm 8,200 nm A350 25* TBD 8,100 nm 9,500 nm 359 Aircraft *50 Aircraft on Order. Deliveries start

5 Value Stream Note: 50% Vendor Serviced Risks Unplanned Events, Damage with Unknown Causes Error Made in Processing Runway Incursion Altitude Deviation Hardware Failure Weather Impacts Regulatory Impacts Reputation Risk Airline of Choice 5

6 What is the Data Telling Us? Emerging Countries Will Drive the World Economy 6

7 What Is the Data Telling Us? 7

8 Significance of Human Factors $5.8 Billion/yr in injury costs Aviation ground and flight 8

9 Vendor Risk Risks Damage (40% of Damage) Incomplete Work Personal Warranty Control Methods Line Operation Safety Assessment (LOSA) Qualification Assessments IATA Safety Audit for Ground Operations (ISAGO) Arrival/Departure walk-around FAA Review/Oversight Line Line Maintenance Maintenance Heavy Heavy Maintenance Maintenance UAX UAX Cleaning Cleaning Contractors Contractors Catering Catering Aircraft Aircraft Lav Lav Services Services Potable Potable Water Water Weather Weather Services Services Fuel Fuel Contractors Contractors 9

10 Focus on 5 10

11 Foundational Concepts Culture Systems Tools People Recognition Safety Knowledge Communication Quarterly Safety Work Shops Safe Environment Going the Extra Distance Proactive in Safety MoveSmart/ BackSafe ADD UP Cost of Poor Safety LOSA/SCA* Integrated SMS VPP Triple Crown Center of Excellence Peer to Peer On Board Maintenance Flight Ops Safety Leadership Teams Airport Operations $ Injury Damage WC Costs Lost Revenue Time Reliability Advocate Roles Simplified BBS AFA IAM IBT UAL People Behaviors Location Intervention *LOSA Line Operation Safety Assessment SCA Safety Compliance Assessment 11

12 United s Safety Management System 12

13 Poor Cost of Safety Crew Costs (Timed Out) Delay or Cancellation Maintenance Or repair Gate Space Damage Time Out Of Service Part Inventory Delayed Maintenance on Other Aircraft Customer Satisfaction Rebooking Costs 13

14 Crew Resource Management (CRM) and Threat & Error Management (TEM) Oversimplified Crew Resource Management How teams communicate with: Each Other External agencies (ATC, Dispatch, etc.) Management Resources Interdependent Threat and Error Management What teams communicate about: Operational threats Human error Integrated System Approach 14

15 Line Operation Station Assessments (LOSA) (Integrity of Processing) Purpose: Quality/Safety of servicing Direct Feedback/Improvement Team: Pilots, Maintenance, Onboard, Ramp Peer to Peer intervention Average B Vehicle Movements 25 People touching aircraft Turn Time 60 min 25,000 lbs of luggage and cargo 15

16 Aviation Safely Awareness Programs (ASAP) Flight Crew, Flight Attendants, Ramp, Maintenance, Dispatch Non-punitive Self Disclosure Process Events/ Near Misses/ Concerns Partnership : United, Unions & FAA Trends/Corrective Action Opportunities for improvement First Airline to incorporate ramp employees 16

17 People Human Factors Demographics Different demographic of people from location to location Absentee work force Constants: 3i Actions Initiate Can t Implement Don t Know Improve Won t 94% of Events are Human Factor Based 17

18 Community with 45,000 People Lessons Learned Visible Current Preventive Focus Develop new ways with: Social networking Twitter Facebook Instant Communications 18

19 Advocacy Aligning the Leadership Tools & Capability Accountability Peer to Peer Proactive Focus Performance Safety Leadership Teams Alignment ADD UP Leadership Sessions Safety Round Tables - Division Recognition 19

20 Operations Control Tackling the Day To Day Notification, Action, Response 20% of operating environment is variable Managing Aircraft Dispatch Diverts Weather 20 Mechanical issues ATC Crew Staffing UAX Airport issues Security Ill passengers Vendors

21 Performance Arival +14 Worse to first in Arrival +14 minutes (A14) in one year 2009 Injuries 52% in Damage Reduction 2009 Damages Reduced injuries by 12% 29,000 less Lost Work Days 24% Improvement in injury cost 21

22 Summary Communication Accountability Self Disclosure Performance Alignment Teamwork 22 Come Fly the Friendly Skies!!!

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