UNDERSTANDING HSE KEY PERFORMANCE INDICATORS (KPIs)

1. Purpose and area of application

The principal objective of the HSE management system is to prevent harm or degradation to
personnel, property, the environment, and the integrity of our work product.
Panafrican Group utilizes key performance indicators (KPIs) as a method to measure and
track past performance and future outcomes toward specific target HSE goals in order to
maintain business continuity and reduce operational risk and harmful HSE exposures.
Panafrican’s HSE management system relies on the evaluation of accurate, timely data and
performance metrics to adequately evaluate the effectiveness of the HSE management
system. KPIs are used to collect data and communicate trends, which can then be used to
indicate where further process or procedural improvements and resources are required.
KPIs intended to improve the Panafrican HSE management system will:
 Collect information that is relevant for management decisions and actions.
 Allow accurate and detailed comparisons of HSE metrics.
 Allow qualitative or quantitative measurement.
 Be consistent, accurate and reliable.
 Present recommended procedural improvements/changes to Management
Panafrican KPIs are measurable indicators that demonstrate progress towards a specified
target. They enable Panafrican leadership to assess progress towards the achievement of an
outcome, objective, or goal within an agreed timeframe.
Panafrican HSE KPIs should seek to answer such questions as:
 Where are we relative to our overall health and safety objectives?
 Where are we in controlling hazards and risks?
 How do we compare with others within our own industry?
 Are we improving over time?
 Is our HSE management system being effectively implemented?
 Is our management of HSE proportionate to our hazards and risks?
 Is an effective HSE management system in place across all parts of the organization?
 Is our culture supportive of our HSE objectives?

The previous questions should be asked not only at the executive level but also
throughout various management and leadership levels across the organization. The
goal is to provide a complete and accurate picture of the organization’s HSE
performance.

2. Definitions
Man Hour is the numerator for an hour physically worked by an employee. An employee who
works a standard salaried 40 hours per week will be calculated as having worked 40 hours. An
employee who works a standard 48 hours is calculated at 48. If any employees work
compensated overtime those numbers are counted. Kofi, a 40 hour a week employee who
works 60 hours and is paid for it will have 60 hours counted. This includes all billable and
trackable hours including overtime hours. Non tracked hours such as travel or casual overtime
cannot be added to the total. Vacation and R&R time is not counted.
All contractor hours are to be counted regardless of how many subcontract levels are
initiated. They must all be calculated separately and as a total for the project. By keeping
records on each contractor we can monitor the individual contractor performances and by
making summations we can calculate the project records. Summation of all projects will result
in project totals.
Safe Man Hours Worked is the number of man hours worked in which no Recordable Incident
occurred such as a Medical Treatment Case or worse.
Total Man Hours Worked represents the number of hours expended by all personnel
assigned to the project.
Man-Power is the number of personnel assigned to the project. This includes all personnel
for the project.
Direct Employees are hourly employees who will have the most exposure to injury. These
are field workers such as mechanics, electricians, welders, pipefitters, carpenters, laborers,
etc.
In-Direct Employees are support and management personnel who will have little if any
exposure to danger. This includes office staff, QC, HSE, Engineering, etc
Fatal Cases are those in which an employee expires as a result of an injury or illness incurred
during the course of their job duties.
Lost Workday Case (or LTI – Lost Time Incident) is when an injury occurs to an employee
which is serious enough to result in him missing the following regularly schedule shift. The
day of the incident does not count in this calculation. Only the following shifts are affected.
Only a Physicians order can result in a LWC. If an employee is cleared to work and decides
on his own not to return it does not count as an LWC.
Restricted Workday Cases are when an employee is injured seriously enough that he cannot
return to his normal duties and must instead be offered modified work. An example would be
an electrician who fractures a finger. He may not be able to return to his original duties at
once but will still be able to perform routine clerical duties that are in line with his
craft. Restricted Workday Cases are calculated in the Severity Index of Injuries. Another
example would be a job transfer case. If an employee suffers a debilitating back injury and
cannot work his normal job but is instead transferred to a different, less strenuous job it is
considered a job transfer case.
Medical Treatment Cases are when an employee is injured seriously enough that basic first
aid is not sufficient to treat the injury. MTC cases includes injuries such as fractures,
lacerations resulting in stitches, multiple doses of prescription medications, etc. These
employees are treated and released to full duty status.
First Aid Case is any injury resulting in basic First Aid treatment such as cleaning a wound
and applying a plaster, applying ice for a bruise, irrigating a foreign body from an eye. etc.
Property Damage is when any material, equipment or structure is damaged in a manner that
will necessitate replacement or repair at cost. An example is if two vehicles back into each
other and a tail lamp is broken. This is property damage. If the bumpers strike and there is
no damage it is a Near Miss.
Near Miss is when an occurrence is noted which could have caused an incident such as a
First Aid Case or Property damage or worse but did not. An example would be a piece of
falling material. If it falls and strikes a person we have an incident. If it misses all personnel
and causes no damage we have a Near Miss.
Motor Vehicle Accident is an accident involving an operated vehicle. This includes all light
duty pickup trucks, cars, vans, etc.
Fire Incident is any fire (including smoldering fires) occurring on site from unplanned sources.
Hot Work with a torch or welding machine is not a Fire Incident. If the slag or hot buckshot
from the operation sets combustible material on fire then a Fire Incident has occurred.
Environmental Incident is any unplanned event that adversely impacts or has the potential
to adversely impact the natural environment, such as a chemical/hydrocarbon spill or
release. The baseline we are using is 4 liters or more of liquid hydrocarbons, caustics, paint,
solvents, etc. or a visible (4 Ringleman) cloud from dirt work activities.
Total Number of Recordable Injuries includes all Fatalities. Lost Workday Cases, Restricted
Workday cases and Medical Treatment Cases.
Number of Days Lost Because of Lost Workday is the number of days an employee is
taken off of work by a physician.
Number of Restricted/Job Transfer Days is the number of days where an injured person
cannot perform their regular duties as a result of a job related injury. The days are order by
the physician.
Total Number of Days Lost is the sum of Lost Workdays and Restricted Workdays.
Man Day represents a single calendar day. It is used to calculate sequences of safe or unsafe
days.
Safe Man Days are days where no Lost Time Incident occurred.
The Numbers we will track and report are these:
TRIR is the Total Recordable Incident Rate. This is a rate of Medical Treatment Cases per
100 employees. It is factored as: Number of cases x 200,000 (100 man years) divided by the
man-hours worked.
TLTIR is the Total Lost Time Incident Rate. It is calculated the same as the TRIR except
that it is the number of Lost Time Incident cases x 200,000 (100 man years) divided by the
man-hours worked.
Severity Index is a ratio used to calculate how badly personnel are being injured. It is
calculated as the number of lost or restricted work day cases x 200,000 (100 man years)
divided by the man-hours worked.
High Points are the HSE successes for the week. Was a milestone achieved? Was a new
safety related instruction course introduced?

3. Types of HSE key performance indicators

3.1. Leading indicators

Leading indicators allow Panafrican Group to measure the effectiveness and applicability of
HSE policies, procedures, and activities in achieving desired HSE outcomes. Leading
indicators are designed to be used as a tool for risk avoidance and/or risk reduction by
increasing awareness to the causes of HSE incidents and negative outcomes. These types of
indicators are more predictive of future performance results and are viewed as proactive
measurements of HSE performance. Panafrican Group uses leading indicators to identify HSE
priority areas of action that pose the greatest risk to the success of the organization. Once
these priority areas are identified, the initiating events or root causes can be discovered, and
appropriate preventative measures may be integrated into the process. Leading indicators that
have moved outside of the acceptable parameters established by Panafrican Group HSE
management will prompt corrective action according to the HSE management system PDCA
process.

Examples of leading indicators are:

 Number of jobsite inspections/audits completed.

 Number of HSE deficiencies identified at each jobsite and companywide.
 Percentage of jobsite inspection findings abated on time.
 Number of repeats HSE deficiencies at each jobsite and company-wide
 Percentage of projects with project pre-planning communication and collaboration
between operations and safety for upcoming projects
 Number of projects with complete and accurate JHAs reviewed by effected personnel.
 Percentage of projects tracking HSE deficiencies to resolution.
 Percentage of employee HSE training completed vs. expected.
 Number of high risk tasks with correlating task specific plans (e.g. fall protection,
trenching, energized electrical work, confined space etc.)

3.2. Lagging Indicators

Lagging or outcome indicators are historically, the most commonly used KPI to measure
HSE performance. Lagging indicators measure the result of an HSE incident after potential
incident or negative outcome has occurred or manifested itself. Strictly using lagging
performance indicators does not accurately portray whether a management system is
performing adequately or as designed.

Examples of lagging indicators are:

 Lost Time Injury Frequency (LTIF)
 Accident Severity Rate (ASR)
 Lost Time Case Rate (LTCR)
 Fatalities
 First aid cases
 Near miss cases
 HSE incidents/near misses
 Regulatory inspections or citations
4. Trend Analysis
The Panafrican Group HSE trend analysis process strives to identify unsafe behaviors,
hazardous conditions, negative environmental impacts and quality defects by tracking,
investigating and analyzing such occurrences to determine common characteristics and root
causes to prevent a recurrence of negative outcomes. This trend analysis process is designed
and implemented to collect useful data, identify patterns or trends and present the data in an
easy to understand format for the purpose of HSE process improvement.
Panafrican Group trend analysis includes the following:
 Tracking and monitoring workplace injuries, illnesses, environmental events and
quality defects on an on-going basis
 Grouping HSE incidents by nature, event or exposure, source, etc.
 Identifying any equipment, materials, or environmental factors that may be commonly
involved in HSE incidents
 Identifying possible solutions and suggesting improvements to reduce or prevent the
likelihood of future HSE incidents.
 Examine history of safety and health data

4.1. Trend Analysis Process

Collecting accurate information for conducting timely trend analysis and preparing corrective
or process improvement recommendations is a key element of the Panafrican Group HSE
management system. HSE trend analysis information is used for assessing the
effectiveness of risk controls and for identifying issues that need further study, intervention
and HSE leadership promotion. This data enables Panafrican Group HSE management to
support leadership in ways that enhance the HSE management system, improve the
overall program, and create positive change.
The Panafrican Group trend analysis process includes the following:
 Identify data that will be collected during trend analysis
 Identify those responsible to collect and analyze the data
 Collect data
 Analyze data to identify consistent findings
 Identify/evaluate options to address areas of concern
 Recommend actions and implement them
 Monitor progress and report results
Example: Calculating the February 2023 GMC KPIs
Number of Hours Worked (Man-Hours) = 6,816hrs
To compute this, get the number of days worked per employee for the month and multiply by
the employee’s normal hours of work per shift.
For instance, Employee A worked 21 days in February 2023. His normal hours per shift is 12
hours. To get Employee A’s total man-hours, you need to multiply 21 days by 12 hours.
Employee A (Man-hours)=21x12=252 Hours
Using the same formular, Employee B, who worked for 25 days in the same calendar month
for 8 hours will have a man-hour of 200 hours.
The man-hours for all Panafrican and contractors employees at the GMC MARC site will be
summed up to arrived at the 6,816 man-hours.
Note that this figure excludes GMC employees who work with the Panafrican team.
The LTI Free Hours (4,716) is computed by multiplying the number of successive or
continuous days worked (as a team) by the maximum hours the entire team spend on site.

So, in the month of February report the team had worked 393 days continuously in a 12-hour
maximum shift period without lost time injury.

So, LTI Free Days = 393 days with LTI for a 12-hour max

Therefore, LTI Free Hours = 393 x 12 =4,716.