1 August 24th – 25th Kansas City, MO2004 ARMA Meeting Presentation by Daniel L. Helman, CIH, CSP, CHMM, REM Director, Health & Safety August 24th – 25th Kansas City, MO

2 GAF Materials Corporation (Environmental), Health & Safety Management SystemThe Beginnings of a Structured, Methodical, Business-like Approach to Risk Management Decision Making! DLH Introduction EHS Management System Design & Development 18 site visits Facility discussions What’s the difference? Enhancement of existing system GAFMC Specific Culture Change Process Taylored for our business & our issues Initiatives have been prioritized We will deliver the “how to” Tools will be developed and provided Standardization Best Methods Deployment Much broader is scope Both Vertical & Horizontal in magnitude Environmental… Cooperative effort with Environmental Group

3 EHS Management System Theme (Basic Premise & Core Values)EHS is Equal EHS should be valued as being equal to the other aspects of our business and be managed in the same manner The “Safety 1st Slogan is not reality, rather, the “EHS Equality” Slogan is and can be achieved! Safety Quality Service Cost

4 The EHS Management SystemThe Objectives... Define core values related to EHS Write a prescription for Success Dose-specific for each location Provide Turn-Key Deliverables Define strategic initiatives and develop business plans annually and over a 3 to5 year planning cycle Core Values EHS Policy EHS Vision Turn-Key Deliverables Best Method Tools including… Written programs Training materials Hands-on Execution Monitoring & Tracking System Period Rejeuvenation Strategic Initiatives 12 point game plan 3-5 year plan Carve out AOP’s in the form of EHSBP’s and EHSTIP’s This is first and foremost a Culture Change Process!

5 The EHS Management System (The Game Plan)Management Leadership & Commitment Performance Management & Recognition Management Assessments & Assurances EHS Business Planning Special Emphasis Programs Hazard Management (Identification, Evaluation & Control) Integration of EHS into day to day business activities Best Methods & Benchmarking Communication, Education & Training Crisis and Failure Management EHS Resources & Professional Development Legislative & Regulatory Compliance 12 Point Game Plan Highlighted Initiatives Initial Focus and impact 1st 11 are system oriented These will drive compliance

6 Management Leadership & CommitmentObjective... Mgmt. Involvement How… State the company’s Core Values Identify the corporate infra-structure Corporate EHS Steering Committee Corporate EHS Roundtable Identify the facility infra-structure Facility EHS Leadership Team Core Values EHS Policy EHS Vision Statement To finish each and every day, injury and incident free Roll-out Plan Corporate Infra-structure EHS Steering Committee Think Tank Policy making group KW & Staff, PM, myself & others EHS Roundtable Doers Facility Infra-structure EHSLT Describe make-up

7 GAF EHS Vision StatementTo Finish Each and Every Day Injury and Incident Free

8 EHS Performance Management & RecognitionObjectives... Define Metrics Reward performance How… Leading and lagging indicators Tier I, II, III Metrics Create Linkage Facilitate recognition and celebration Electronic, automated shared data management system EHS Metrics define the appropriate metrics, in terms of leading and lagging indicators of performance that will be used for determining process variation within the company, EHS functional area and at the operating location level linkage ultimately link the metrics to the company-wide and individual performance review process Recognition Million Hour Club EHS Excellence Award EHS Achievement Award facilitate recognition and celebration for meeting or exceeding performance and for those who are innovative or take pragmatic risks E-system Facility data entry & analysis system

9 Tier I Metrics - Executive Leadership & Company-wide Performance MeasuresTotal Case Rate (TCR) total OSHA Recordable Cases per 100 workers Lost Time Case Rate (LTCR) total Lost Time Injury Cases per 100 workers Worker’s Compensation Costs/$100 payroll total W/C Costs per $100 payroll costs Notices of Violations (NOV’s) total number of violations issued from any EHS agency for noncompliance

10 Tier II Metrics - Corporate EHS DepartmentLeading Indicators Facility EHS Business Plan (% complete of plan) Facility EHS Training Plan Adherence EHS Assessments (% of completed findings) Best Methods Execution (% identified/implemented) Lockout/Tagout % of completed findings Loss Control (Fire & Property Protection) Lagging Indicators Injury/Illness Frequency & Severity Indicators TCR LTCR & LWDR RACR & RWDR FACR Near Misses Experience Modification Rate (EMR) annually ARMA Rankings quarterly W/C Cost/$100 payroll (%) W/C Total Cost ($) NOV’s Permit Exceedences (# of occurrences)

11 Tier III Metrics - Facility Management (Includes Tier I & II Metrics Plus…)Preventive Maintenance Schedule (% adherence to plan) Corrective Action Tracking (% complete) Departmental Housekeeping Inspections (# completed) Departmental EHS Meetings (# of meetings held) Safe Behavior Observations # completed Machine Guarding Plan Adherence (% complete of plan) Ergonomics Plan Adherence Injury/Illness Pareto Analysis Overtime Hours Absenteeism Rate (%) Turn-over # of Manpower Moves # of Employees Involved in Teams

12 EHS Recognition Corporate Recognition ActivitiesFacility-specific Recognition Activities for associates and teams ARMA Awards & Recognition On the Horizon OSHA VPP

13 Assessments & AssurancesObjective... Provide assurances to management How… Define an EHS assessment protocol, rating system and tracking system Perform comprehensive, baseline assessments Capture & Prioritize Risk Qualitative Quantitative Involve senior management personnel The objectives are to … define an H&S assessment protocol and tracking system perform comprehensive, baseline assessments of each operating location utilizing in-house H&S professionals provide assurances to the various levels of management that potential hazards are being identified, evaluated and controlled to minimize risk provide assurances to the various levels of management of compliance with standards involve senior management personnel Audit Protocol EHS oriented Perform Audits During 2002 Resource Requirements Corporate EHS Facility HR or Safety Coordinator Attorney-Client Privilege Relationship Establishment

14 EHS Business Plans & BudgetObjective... Proactive Planning How… Develop EHS Business Plans Develop EHS Training Implementation Plans Quantify and manage the actual expenditures The objectives are to... Carve out an Annual Operating Plan for… the corporate EHS Department, including… capital and expense monies necessary for implementation of the EHS Management System in a given period Develop and Annual Operating Plan for each facility including… Activities and training including capital and expense monies necessary for implementation of the local EHS Management System Elements quantify the actual expenditures for company-wide EHS Management EHSBP’s & EHSTIP’s Standardized format Facility-specific content Who, what, when, where, why, how, cost

15 Facility-Specific EHS Business Plan

16 Special Emphasis ProgramsObjective… Identify projects with immediate impact “Fix a Spot on the Floor” How… Three Phase Approach Phase I Phase II Phase III Back to the Basics or Band Aid Initiatives SBO Process Execution EHS School 101 Ergonomics Management System Chutes & Ladders Wrap-up Machine Safeguarding EHS Commitment Meetings Asphalt Tank Loss Prevention Industrial Hygiene Exposure Assessment & Sampling Plan Database Management System Medical Surveillance & Monitoring Respiratory Protection Program Job Safety Analyses (JSA’s) Chemical Inventory Tracking (MSDS Management System) CALOSHA IIPP’s

17 Hazard Management Objective… How… Identify, Evaluate & ControlDevelop facility-specific written programs Develop an IH Exposure Assessment & Sampling Plan Includes all written programs, policies, procedures and rules necessary for injury prevention and compliance identify those activities that are necessary for identification, evaluation and control of hazards to minimize risk develop those facility-specific written program elements that are required by regulatory directives equip and support facility personnel to execute implementation of all aspects of the written program elements including the education and training portions

18 Hazard Management Machine Safeguarding Formaldehyde Program GeneralProcess Improvements Ergonomics Job Safety Analyses Radiation Safety Program (RSO’s) Industrial Hygiene Exposure Assessments & Sampling Asbestos Containing Materials Mgmt. Plan Hazard Communication Program Confined Space Entry Program Respiratory Protection Program Lockout/Tagout Program Formaldehyde Program Silicosis Prevention Program Asphalt Fumes Program Fiberglass H&S Program Personal Protective Equipment Program Stillyard Safety Program Bloodborne Pathogens Program Hearing Conservation Program Contractor Safety Program Thermal Stress Program Fall Protection Program Medical Monitoring and Health Surveillance Program

19 Hazard Management Targeted Department Safety ProgramsHazardous Materials Management Program Compressed Gas Cylinder Handling Safety Program Flammable Materials Safety Program Indoor Air Quality Program Hot Work Permit Program Fleet Safety Program Bio-Safety Program Walking & Working Surface Safety Program Office Safety Program Travel Safety Program Electrical Safety Program Material Handling Safety Program Powered Industrial Vehicles Safety Program Hand Tool Safety Program Carcinogens,Teratogens, Mutagens and Reproductive Hazards Program Open Surface Tanks Safety Program Laboratory EHS Program Deviation Program Conditionally exempt variances Risk Assessment Process Fire Protection Program Waste Minimization and Pollution Prevention Plans

20 EHS Integration into Business OperationsObjective… EHS is Equal How… AFE Process Develop quantifiable risk management tool Utilize existing management systems EHS is Equal EHS should be valued as being equal to the other aspects of our business and be managed in the same manner The “Safety 1st Slogan is not reality and difficult to achieve, rather, the “EHS Equality” Slogan is and can be achieved! However, in the decision making hierarchy, it’s our duty to think of the safety ramifications first! ensure that environmental, health and safety considerations are taken into account when making business decisions at all levels in the organization develop a template for quantifying risk, liabilities, cost of implementation and impact to the bottom line for each EHS business proposal utilize existing management systems for implementation of the EHS Management System where appropriate

21 Best Methods & BenchmarkingObjectives… Maintain Best Methods Manual Share information across company How… Identify existing internal best methods Identify new best method opportunities Best Methods Turn-key deliverable Written Program Training Material Hands-on Execution Monitoring & Tracking Periodic Rejeuvenation PM Opportunity for input The objectives are… to increase operating efficiencies by capitalizing on the synergies of in-house talent and advanced techniques through the sharing of information to identify and execute the implementation of existing internal best methods and practices to compile a list of best method opportunities awaiting attention, then draft a business plan for their development and implementation

22 Best Methods WIP LOTO JSA’s Machine SafeguardingEngineering Design Specifications WIP PIV’s Written Compliance Programs Respiratory Protection Hazard Communication Hearing Conservation Confined Space Entry Bloodborne Pathogens

23 Communication, Education & TrainingObjective… Provide Meaningful, Quality Education & Training How… Develop EHS Training Implementation Plans (EHSTIP) EHS School 101 OSHA 30-Hour Course RSO Training Project Champion School Standardized New Hire Orientation Program Improve Internal/External Communications EHS Alerts SIR Process EHSTIP’s Standardized form Facility-specific content EHS School 101 GAFMC Specific EHS Mgmt. System Awareness Training 8-hours Replaces the OSHA 30-hour Internal/External Communications Weekly IOI Rpts Monthly Teleconference Calls Quarterly EHSRT Meetings Regional EHS/HR Meetings EHS Alerts & Noitifications

24 EHS Training Implementation Plan

25 Crisis and Failure ManagementObjective… Advanced Preparedness How… Re-visit Business Continuity Plans Aggressive Activity on Fire & Property Protection Plans Enhance Incident Investigation Process Roll-out of Worker’s Compensation Management System Additional support to be provided by Regional EHS Mgr.s The objectives are to … plan in advance for catastrophic events to minimize risks to people and property damage to manage crises effectively to investigate all incidents for determining system failure and root cause to manage all worker’s compensation claims fairly and consistently, minimizing losses

26 EHS Resource Utilization & Professional DevelopmentObjective… Preferred Service Provider How… Increase internal EHS Professionals Utilization Enhance existing talent base Identify areas of in-house EHS expertise Determine adequate EHS staffing levels Preferred Service Provider Eliminate use of local consultants Increased use of Regional EHS Mgrs. Linkage to facility good, bad and ugly

27 Resources Corporate Support Services Corporate EHS Steering Committee(1) Corporate Director, H&S (4) Regional EHS Managers Extremely hands-on (1) Corporate Director, Env. Eng. (1) Corporate Env. Eng. Corporate EHS Steering Committee Corporate EHS Roundtable Facility Support Services EHS Leadership Team Members Project Champions!!! (4) FTE’s Hourly Safety Coordinators (18) PTE’s Support Personnel (Ranging from 10-50% of time)

28 Legislative and Regulatory ComplianceObjective… Achieve & Sustain compliance How Stay abreast of regulatory climate Proactive participation in legislative and regulatory issues Define EHS recordkeeping and retention requirements

29 Take-Aways Infra-structure Creation Advanced Planning & BudgetingEnhanced Education & Training Comprehensive Mgmt. Assessments & Compliance Audits Best Methods Development & Sharing Turn-key Deliverables Everything gets tracked Increased Hands-on Support