Introduction into Fatigue Management

1. Introduction into Fatigue Management NW’s solution with Transtech - Sentinel

2. Agenda Why is Fatigue Management Important? Key Verticals What is the Legislation? Standard Hours BFM AFM What is the Solution? How does it work? Summary and ROI Questions?

3. Why is Fatigue Management Important? Both employers and drivers have a duty of careto control and manage fatigue, and when drivers take naps to manage fatigue they are acting within their duty of care Confidential | 3

4. Why is Fatigue Management Important? People normally need between 7 and 8 hours of continuous sleep. Severe sleep debt can result in an irresistible urge to sleep. Confidential | 4

5. Why is Fatigue Management Important? Our body temperature drops to its daily low point at these times of the day (midnight to 6 a.m. and 2 p.m. to 4 p.m.) We are designed to be awake in the daytime and asleep at night Confidential | 5

6. Why is Fatigue Management Important? Signs of Fatigue • Constant yawning • Blurred vision • Sore or heavy eyes • Poor concentration • Variations in driving speed; • Letting your vehicle drift out of lanes • Difficulty remembering the last few kilometres • Impatience • Poor gear changing, indicator use and use of other vehicle controls Confidential | 6

7. Key Verticals FM is under the spotlight for a lot of transport operators with recognition that working long hours and night shifts is widely recognised as high risk. Operators and drivers who ‘do the right thing’ by managing fatigue risks have a greater say in when drivers can work and rest and will now have access to a reasonable steps defence. Any organisation where employees are driving long distances and performing other duties combined Confidential | 7

8. What is the Legislation? The new Heavy Vehicle Driver Fatigue reform requires all parties in the supply chain to manage the causes of heavy vehicle driver fatigue. Under these new laws, everyone in the supply chain, not just the driver, will have responsibilities to prevent driver fatigue and ensure drivers are able to comply with the legal work/rest hours If your actions, inactions or demands cause or contribute to road safety breaches then you can be held legally accountable Authorities can investigate along the supply chain and up and down the corporate chain of command. The days of ‘all care and no responsibility’ are over. Under the new laws, everyone in the supply chain must take ‘reasonable steps’ to prevent driver fatigue and ensure a driver does not drive a heavy vehicle while impaired by fatigue – an approach consistent with existing Occupational Health & Safety (OH&S) laws. Confidential | 8

9. How do I manage fatigue? • The Standard Hours option sets out minimum rest and maximum work hours and contains basic record keeping requirements • Basic FM accreditation offers more flexible hours and retains the ability to work 14 hour shifts. • BFM gives operators a greater say in when they can work and rest providing the risks of working long and night hours are properly managed. • If your operation requires more flexibility than available under Standard Hours or BFM you should look at the Advanced Fatigue Management (AFM) option. • AFM may also be suitable for operators with specific needs such as remote areas livestock transport (see Table 1). Confidential | 9

10. Standard Hours The Standard Hours option will suit most businesses. It sets default limits for work and rest. If you need more flexible hours, you can consider applying for Basic Fatigue Management (BFM) or Advanced Fatigue Management (AFM) options The Standard Hours option for solo drivers sets out minimum rest and maximum work hours and includes basic record keeping requirements (see table 2). The Standard Hours option is also available for two-up and bus drivers. Confidential | 10

11. BFM (Basic Fatigue Management) BFM accreditation offers more flexible hours and retains the ability to work 14 hour shifts. BFM gives operators a greater say in when they can work and rest providing the risks of working long and night hours are properly managed. If your operation requires more flexibility than available under Standard Hours or BFM you should look at the Advanced Fatigue Management (AFM) option. AFM may also be suitable for operators with specific needs such as remote areas livestock transport Operators will need to be accredited in the National Heavy Vehicle Accreditation Scheme (NHVAS) and comply with six BFM standards covering scheduling and rostering, fitness for duty, fatigue knowledge and awareness, responsibilities, internal review, and records and documentation. Confidential | 11

12. An example of BFM log book Confidential | 12

13. AFM (Advanced Fatigue Management) AFM encourages an operator to develop a customised and auditable safety management system with controls specific to the fatigue risks of a particular business. Limits are set on a case-by-case basis and are dependent upon the individual circumstances and the counter measures proposed by the operator to manage the higher risk. Confidential | 13

14. AFM Continued AFM Limits AFM operates against two sets of limits to manage the higher fatigue risks (see Figure 1). Normal operating limits are used to guide operators when developing everyday schedules and driver rosters taking into account all foreseeable contingencies and reflecting the inherent fatigue risks (e.g. the amount of night driving balanced against longer rest breaks). Outer limits represent the point at which further work poses an unacceptable fatigue risk. The national outer limit of 16 hours cannot be exceeded. This limit is based on robust advice from fatigue experts, and experience from current transport industry practices. Figure 1: Normal operating and outer limits Only in exceptional circumstances would a driver be allowed to work between the normal operating limit and the outer limit. For example, in the case of an unforeseen and lengthy delay which greatly extends the driver’s work schedule. Confidential | 14

15. I’m confused?? Is there an easier way for my company to manage employee fatigue and demonstrate due diligence? Confidential | 15

16. The Solution Partner with now delivering SENTINEL Confidential | 16

17. What is Sentinel? Navman Wireless has partnered with Transtech and their Sentinel rules engine to allow transport operators using our system which is TCA (Transport Certification Authority) Approved to better manage and monitor their driver fatigue policies. This requirement is becoming increasingly necessary as new Australian WH&S laws become more complex and emphasise the role both driver and employer play in the ‘chain of responsibility’ model to ensure all practicable steps are taken to manage driver fatigue. Sentinel is the only enterprise grade solution that provides 'back office' benefits to operators as well as providing in-cab information for the driver. Sentinel provides support for all Fatigue Management (FM) rules - such as Basic Fatigue Management (BFM), Advance Fatigue Management (AFM) as well as Standard Hours. The interpretation of these is different in most states across Australia. Confidential | 17

18. How does it work? Confidential | 18

19. How does it work? Log into Sentinel Add Driver Apply Rules Confidential | 19

20. How does it work? Driver uses MDT-860 or M-Nav 800 to indicate their rest, work or driving status when they enter/exit the cab Sentinel receives events and calculates Fatigue Management statusAll rule sets are covered – NSW, QLD, VIC, SA, NT BFM and Standard hours as well as WA and Tasmania In terms of requirements that have been captured, there are different approaches to driver statuses across the states in Australia. The Eastern states of QLD, NSW, ACT, VIC and SA all use two driver statuses of ‘Driving’ or ‘Rest Break’ – if a driver does not indicate they are on a rest-break they are considered to automatically be ‘working’. In the Western states and Tasmania (WA, NT, TAS), drivers are asked to differentiate between driving and ‘Other work’. Confidential | 20

21. How does it work? Customise when and how you want to Alert messages to be sent to MDT-860 or M-Nav 800. Options to send warnings prior to violation as well as alert on violation Email also available Confidential | 21

22. How does it work? To keep the process simple, the driver’s work status will be used to govern how Sentinel calculates daily and cumulative rest breaks. Based on these selections, the system reacts and schedules alerts / violation messages to be sent. Confidential | 22

23. How does it work? On one screen, you can acquire intelligence to gain a true understanding of driver behaviour in your fleet. Confidential | 23

24. Summary and ROI • Summary of Key Benefits • Gives transport operators assurance of compliance with fatigue management regulations • Enables immediate proactive response to fatigue management violations • Builds the culture of responsible fatigue management across your business • Driver events captured and calculated automatically reducing admin costs Hourly rate for an employee in admin = $20 per hour By decreasing their work load by 16 minutesper day per vehicle Sentinel with Navman Wireless could be cost neutral. Not taking into consideration how much it costs when an incident actually occurs Confidential | 24

25. Are you taking reasonable steps and demonstrating due diligence under the new WHS Act?? Confidential | 25

26. Notes and Reference Points Legislation driving the need for compliance is mainly regulated via NTC Australia. An overview of can be found at http://www.ntc.gov.au/viewpage.aspx?documentid=1486 Standard Hours http://www.ntc.gov.au/viewpage.aspx?documentid=1498 BFM http://www.ntc.gov.au/viewpage.aspx?documentid=1499 AFM http://www.ntc.gov.au/viewpage.aspx?documentid=1500 Sentinel http://www.navmanwireless.com.au/dealer-portal/sentinel Confidential | 26