integrated— Airline Management System An Introduction Taiwan Aviation Safety Seminar 2009

1. integrated—Airline Management System An Introduction Taiwan Aviation Safety Seminar 2009 November 9, 2009 Taipei Captain Hideki Endo Safety, Operations and Infrastructure MSTF/46

2. Integrated Airline Management System • What is integration? • Why do we need it? • What are the benefits?

3. Management Systems developments • 2003: IATA Operational Safety Audit (IOSA) • Designed to mange the code-share • Established first “global” standard • 2005: IATA publishes an Introduction to Safety Management Systems • 2006: ICAO publishes Safety Management Manual (SMM) • Requires airlines to implement an SMS by Jan 1st 2009 • 2006: Transport Canada is examining a legislative framework to mandate SeMS

4. Recognition of multiple management systems QMS, EMS, OHSMS, SMS, SeMS (SMM 7.8.1) “Integration of QMS into SMS provides a structured approach to monitor process and procedures to identify safety hazards and their consequences…” (SMM 7.6.13) “Aviation organization should be encouraged to integrate their quality, safety, security, occupational health and safety, and environmental management systems.” (SMM 7.8.3) Does not describe how to organize the work ICAO Safety Management Manual

5. An airline is an complex organization • Multiple management systems • Dispersed operations • Many technical functions • Highly regulated--overlapping State jurisdiction • Subject to multiple State regulations

6. Many system exists in an Airline • Safety Management System (SMS) • Organized approach to managing safety (ICAO) • Tools: Flt Data Analysis, Safety Reports, Investigations • Quality Management System (QMS) • Organizational structure, responsibilities, processes, procedures, resources • Tools: Auditing, Voluntary Disclosure, Systems Coaching • Security Management System (SeMS) • Organized approach to implement & manage security processes • Tools: Security Reports, Investigations, Training • Environmental Management System (EMS) • Organized system to identify and manage environmental risks • Tools: Auditing, Investigations, Training, Coaching These systems supported by different departments in an airline

7. Airline is an complex organization Cargo Dept Cabin Dept Airport Dept Maintenance Flight Ops

8. Key Points Cargo Dept • Airline must organize the work efficiently • Easy to fall in “organizational silo” Cabin Dept Airport Dept Maintenance Flight Ops

9. Safety Committee of the Board CargoPriority 1Priority 2Priority 3 Flight OpsPriority 1Priority 2Priority 3 MaintenancePriority 1Priority 2Priority 3 CabinPriority 1Priority 2Priority 3

10. Are we doing enough? • Are we still in a Silo? • Do we simply present safety information and inform others or inherent risks? • Can we do more in order to better understand the risks? • How can we know the “state” of the Company in terms of risk?

11. Essence of integrated AMSChanging the way how we evaluate events (risks) All Operational Risks are formally reviewed by the Management • Events are not only for respective discipline, it should not be looked at by single department. (Preventing explosives being brought on board is not only the issue of security but also safety issue) Risk affects everyone. • Look at same risk from different perspective using the same risk definition (Same process of data collection and analysis, i.e., Safety report; Audit report; FDA) • Look at risk holistically (Communication barriers are removed, synergy effect) • Better understanding of risks and thus able to picture “state of the company” • Enable management to make effective decisions and mitigations

12. Questions to better manage a complex organization? • How can we present a prioritized list of safety issues? • How can we know what is more important than the others? • Do we have methodology which can compare the issues throughout organization? • How can we know the effect of mitigation actions on all departments? • How can we present “state of the airline” in terms of safety?

13. Safety Committee of the Board • (Operational Risk Review Board) • Airline is an complex organization SafetyPriority 1Priority 2Priority 3 SecurityPriority 1Priority 2Priority 3 QualityPriority 1Priority 2Priority 3 EnvironmentPriority 1Priority 2Priority 3 • Looking at issues in terms of “Operational RISK” will give us better picture for the state of the organization

14. iAMS: Who collects & analyzes data? • Airline is an complex organization • Operational Risk Review Board Safety Risks Security Risks Quality Risks Environment Risks • Corporate safetySMS related dataFlight / Ground safety • Quality, Maintenance DeptQMS related data • Security DepSeMS related data • Environment depEMS related data

15. What are the data to be collected? • Data categories • Employee safety reports • Operational reports • Flight data • Audit findings • Summary reports • Incident investigations • Feedback from the CAA inspection • Data analysis • Safety & Quality Services departments to analyze data • Head of respective department responsible for searching the database from their individual technical perspective

16. What Directors would do? • Collectively see all of the operational risks that face the airline • Prioritize the operational risk • Make holistic analysis analysis of operational risk • Picture “state of the company”

17. Methodology What is Hazard and Risk? • Hazard: condition or an object with the potential to cause personal injury, equipment damage, or regulatory violation • It is not necessarily damaging or negative components of the system. • It is only when hazards interface with the operation…that may become a safety concern • 15 knots Head wind=Better performance for T/O • Cross wind=consequences of lateral control=R/W excursion (ICAO Safety Management Manual)

18. Hazard, Consequences and Risk • Hazard: 15knots of cross wind • Potential of R/W excursion because pilot may not be able to control laterally in T/O = Consequences of hazard • Assessment of the consequences of R/W excursion in terms of probability and severity = Safety risk • Safety = outcome of the management of a number of organizational process • Managing a Risk = allocation of resources

19. Safety risk assessment matrix • Risk severity • Risk Probability

20. Flight Ops Cabin safety Prioritization of Risks Maintenance • Risk severity • Risk Probability

21. Airline Operations Maintenance Operations Ground Handling Implement Plan & Re-evaluate People Reports Flight / Maintenance Dispatch / Cabin Ground Handling / Security Field Investigations Auditing Internal Departmental QC Independent QA External Civil Aviation Environment Security OSH IOSA Data FODA Ops Analysis Safety Statistics Risk Analysis Board (Dashboard) Everyone sees safety status Management Regulators Employees / Unions Recommend Action Plan Operational Risk ManagementSMS / QMS / SeMS / EMS Input into Enterprise Risk Model

22. Integrated AMS: Two segments to address • iAMS • Operational Risk is a part of Enterprise Risk Management Enterprise Risk Management Strategic riskFinancial riskCompliance riskEnvironmental risk (hazadous materials etc)Corporate image/reputation risk • Operational RiskSMSSeMSQMSEMS

23. Integrated-AMS is …. • Conceptual Description • An integrated-Airline Management System is simply a term applied to the integration of all management system within an airline • It describes the relationship and operational responsibility of each supporting management system within the overall enterprise • SMS is one part of an integrated-AMS

24. Value as a Best Practice • Holistic Risk Perspective (Integrated view of different fields) • Efficient (provide complete package of information) • Fresh (continuously assess the data) • Standardized (Use of single risk matrix) • Synergy (Break silo effect, Excellent forum for exchange) • Credibility (Vetting of issues before presenting forum) • Alignment (Align analytical technique and tool) • Transparency (Involvement of CAA etc) • Flexibility (Provide opportunity for tailored briefing)

25. Discussion TASS