Federal Aviation Administration

1. Safety Management System (SMS)Fundamentals Federal Aviation Administration The Core Processes, Elements and Components of a Robust SMS Presented By: Flight Standards Version Date: Apr 1, 2012

2. Subjects Covered: • Why SMS? • Case for SMS & Safety Fundamentals • SMS Fundamentals – Overview • SMS Details: • Policy Component • Safety Risk Management Component • Safety Assurance Component • Safety Promotion Component • SMS Guidance, Tools and Implementation Overview

3. What SMS is not and what it is… What it isn’t: What it is: Compliance is integral to safety management A substitute for compliance An effective interface for safety management A substitute for oversight A replacement for system safety SMS completes the systems approach A requirement for a new department A set of decision making processes for senior and line management

4. SMS Management System Only service provider can manage Does SMS = QMS? Same principles but different objectives QMS Objective Management driven Customer satisfaction SMS Objective Management driven Aviation safety focused SMS, ATOS/NPG, SAS and QMS • ATOS/NPG • Oversight System • Used to meet regulator • responsibilities • SAS • Safety Assurance System • FAA Future State System Safety • Oversight across 14 CFR parts • (121, 135, 145)

5. Federal Aviation Administration Why SMS?

6. Safety in aviation What we understand: • Our record is a good one. • Why Change?

7. Attributed to Dr. Malcolm Sparrow Things that are illegal Things that cause harm

8. What is safety? • Freedom from harm (Dictionary) • Safety is not equivalent to risk free (U.S. Supreme Court, 1980) • “Risk management” is a more practical term than “safety.” (Jerome Lederer ,1928) • “Carelessness and overconfidence are more dangerous than deliberately accepted risk”. (Wilbur Wright, 1901) • Practical safety is risk management

9. Definition of Safety “Safety is the state in which the risk of harm to persons or property is reduced to, and maintained at or below, an acceptable level through a continuing process of hazardidentification and risk management” ICAO Doc 9859

10. Safety Management Systems “A systematic approach to managing safety, including the necessary organizational structures, accountabilities, policies and procedures”. ICAO Doc 9859

11. SMS Purpose and Methods Provides: • A systematic way to identify and control risk. • Assurance that risk controls remain effective. • A formal means of meeting Statutory requirements (Title 14) • The FAA a means of evaluating an organization’s safety management capability

12. System Safety • "The application of special technical and managerial skills in a systematic, forward looking manner to identify and control hazards throughout the life cycle of a project, program, or activity" (Roland & Moriarty, 1990) • Traditional approach concentrates on technical • SMS adds emphasis on management elements

13. ICAO Annex 6, Part I, International Commercial Air Transport • “From 1 January, 2009, States shall require, as part of their safety programme, that an operator implement a safety management system acceptable to the State of the Operator…” • FAA filed a difference with ICAO • Currently no FAA procedures to approve or accept an SMS

14. ICAO Annex 6, Part 1 (Amendment 33) Amendment 33 “… which will become applicable 18 November 2010” Note - The framework for a Safety Management System is contained in Appendix 7. • 1. Safety policy and objectives • 2. Safety risk management • 3. Safety assurance • 4. Safety promotion Applies to International Commercial Air Transport only

15. ICAO Annex 6, Part II, International General Aviation Section 3 Large Reciprocating and Turbo Prop airplanes, and all aircraft with one or more turbo jet engines(Over 5700kg [12566#] or Jet) • 3.3.2.1 “An operator shall establish and maintain a safety management system that is appropriate to the size and complexity of the operation.” • 3.3.2.2 “Recommendation – …SMS Minimum:” • ID Hazards, assess risk • Develop & imp remedial action [to] acceptable level of safety • Monitor & assess SM activities

16. ICAO State Safety Programme (SSP) • Annex 6 • ICAO Doc 9859, SMM AVS FAA Aviation Safety Office Safety Program = AVS SMS • Order 8000.369; FAA SMS Guidance • Order VS8000.367; AVS SMS Requirements • Order 8000.368FS Service Oversight • AC 120-92 (as revised) Svc. Providers SMS • AFS Developmental Guidance AVS LOB’s AFS Flight Standards Service Providers SMS • Safety Management System

17. FAA’s Safety Management (Oversight) (SAS) Operator’s Safety Management System (External SMS) Services Provided Clarifying the “3 R’s” Roles, Responsibilities and Relationships: • FAA • Service Providers Operators Operational Processes

18. Federal Aviation Administration Case for SMS & Safety Fundamentals

19. What is your company’s #1 objective? Achieve its production objectives!

20. Protection and Production • Safety Requirements • Title 49 USC 44702 “…the duty of an air carrier to provide service at the highest level of safety in the public interest” • Economic Authority • [Proposed operation must be] “…consistent with public convenience and necessity” • [Company must be] “…fit, willing and ableto provide the service proposed”

21. Management levels Protection Production Safety Management System • Infuses safety into all parts of the system • People • Tools • Procedures • Materials • Equipment • Software • To maintain the balance of production and protection

22. … Technical Factors Human Factors 1949 British Comet Organizational Factors 1954 Boeing U.S. and Canadian Operators Accident Rate by Year Fatal Accidents-Commercial Jet Fleet – 1959 Through 2007 50 40 Annual fatal accident rate (accidents per million departures) 30 20 10 0 59 60 72 64 62 76 66 68 70 78 74 80 82 84 86 88 90 92 94 96 98 00 02 04 06 07 Year Adapted from Boeing (2008)

23. Organizational Culture Values Professional Norms National Culture Psychological Decision-making • Laws/Regulations • Industry Standards Behavioral System/ Environment Performance • Industry Norms • Business Relations • Markets Practices

24. Informed Decision Making Management and employees understanding hazards & risks Reporting: All personnel freely share critical safety information. Just: Employees must know what is acceptable & unacceptable behavior. Learning: The company learns from mistakes. Staff are updated on safety issues by management. Flexible: Organizational willingness to change. AC 120-92

25. To Support a Sound Safety Culture: • Senior management commitment • Senior management visibility • Safety accountability framework • Safety policy, goals, objectives, standards, and performance • Resource commitment • Effective employee safety reporting system • Safety information system

26. Safety Management Strategies Responds to events that have already happened, such as incidents and accidents Reactive (Past) Proactive (Present) Predictive (Future) Actively identifies hazards through the analysis of the organization’s processes Analyzes system processes and environment to identify potential future problems SMS