PQCDSM KPI Definitions

Safety, Health, and Environment

Total Recordable Frequency Rate

Total Recordable Frequency Rate for employees is the sum of all the lost time accidents (LTA), restricted work cases (RWC), and all medical treatment cases (MTC) expressed as a rate per hundred thousand hours worked. The data reported should cover only each manufacturing site.

TRFR = [{(LTA ≧ 1 day) + RWC + MTC} * 100,000] / (Work-hours)

Which Considers:

1. Lost Time (Injury) Accidents: Injury incidents which result in a person being unable to work his/her next shift must be classified as lost time accidents (including fatalities). For an injury which occurs on the day before a scheduled rest day then the words “unable to work his/her next shift” cannot be applied. For these injury incidents, line management and the occupational health staff must agree whether or not the person would have been able to work normally on the day following the injury incident.
2. Restricted Work Cases: Injury incidents which while not resulting in time off work, do result in the person having to undertake restricted work for at least one shift immediately following the injury incident.  If an injured person cannot perform, on the shift / day following their injury, one or more of their normal tasks then they are “restricted”.  If an injured person is restricted in time, i.e. cannot work for the full duration of their next shift then they are “restricted”. The restrictions must be formally agreed in writing between the occupational health staff and line management. Lost time injury accidents which subsequently result in a period restricted work following the person’s return to work after a period of absence must remain classified as lost time injury accidents.
3. Medical Treatment Cases (MTC): Medical Treatment Cases are occupational injuries, not resulting in lost time (LTA) or restricted work (RWC), but where medical treatment by a doctor or nurse is required beyond simple first aid treatment. Occupational injuries that required multiple doses of medication, excluding simple analgesia, for example, a course of antibiotics to treat an infection must always be classified as Medical Treatment Cases.  An intervention by an occupational health doctor or nurse for the purposes of solely diagnosis, e.g. eye examination or X ray does not result in a MTC classification unless medical treatment is subsequently given.
4. If a MTC becomes an LTA or a RWC then it must not be recorded as an MTC as well.
5. Employee: The term employee includes all persons employed or supervised directly by the company, irrespective of their hours of work or seniority e.g. director, managers, supervisor, operatives etc. An employee is someone who has a fixed term or open term contract of employment with the Company and is on the Company salary/wage payroll, or paid by a third party (e.g. agency) but under the direct supervision of the Company. University, College, School students who are employed to work for the Company must be classified as employees, even if they are not paid or only given out of pocket expenses.
6. For the different plants in a site (different categories or technologies in a site), this information will be reported as the number for the total site.

Off site waste disposal

Measures the number of kilograms of waste disposed of in the manufacturing operations per tonne of production. This should be an indicator already monitored quarterly within the Site.

Waste for Disposal Kg/Tonne = {Kilograms of (Hazardous Waste) + (Non Hazardous Waste)} /  (Total site production in Tonnes)

Which Considers:

1. For the different plants in a site (different categories or technologies in a site), this information will be reported as the number for the total site. As an example, if the site Waste for disposal for the site is = 10 kg / tonne, and there is a A and B plant in the site, the WfD for A should be reported as 10 kg / tonne and also for B.
2. If data are available by platform, then provide these data.  If not available by platform, then maintain at a site level.

Environmental Incidents

Refers to any unplanned or undesired event resulting in:

1. a release which is subject to formal release reporting requirements to a government agency, or
2. a violation of a permit, ordinance, or regulation resulting in a formal charge/order or financial penalty to the company, or
3. a validated third party complaint, or
4. an off-site impact involving evacuation or injury of persons or property in the community.

Which Considers:

1. All events listed in the above definition.
2. On-site event incurred by 3^rd party contractors.
3. Data are for the site level.
4. If data are available by platform, then provide these data.  If not available by platform, then maintain at a site level.

Environmental Incidents = the number of these events according to the definition

Example: A chemical release greater than its reportable quantity must be reported to the Local, Province (State) and/or Federal government.

Example: Any violation which has resulted in consent or administrative order.

Environmental Occurrences

Refers to any unplanned or undesired event resulting in emission to air, land (including groundwater) or surface/stormwater in violation of applicable legislation or regulations but which does NOT require (formal) government reporting or constitute a permit violation resulting in a formal charge/order, or involve a fine or otherwise meet the definition of “incident.” An environmental occurrence includes:

1. an excursion of an environmental permit requiring routine agency notification;
2. receipt of a validated initial notification from a regulatory authority [e.g. Notice of Violation (NOV) or its functional equivalent];
3. a spill or release which does not meet the definition of an “environmental incident” but which has a potential off-site impact;
4. any off-site release or untreated spill that is non-reportable, or that is reportable but requires no further action per the authorities having jurisdiction.

Which Considers:

1. All events listed in the above definition.
2. On-site event incurred by 3^rd party contractors.
3. Data are for the site level.
4. If data are available by platform, then provide these data.  If not available by platform, then maintain at a site level.

Environmental Occurrence = the number of occurrences according to the definition

Quality

Non Conformance

Monitor the percentage of Finished Product that is not produced within specifications directly at the end of the production lines.

% Non conformance = Volume not released first time / Total Volume packed * 100 ppm Non conformance = % Non conformance * 10,000

Which Considers:

1. All product that is held in “quality hold” as part of the normal inspection criterion is still assumed to be “right first time” as long as it is released for shipment after inspection.

• Any product that is delayed or held pending further inspection, even if released for shipment with no reworking, is deemed as “non conforming first time”.

• The aggregation to categories or product groupings should be done by volume, not averaging percentages.

Example

	Volume Produced	Volume Not to specification	Non Conformance (%)
Line A	12,000	100	0.8%
Line B	25,000	330	1.3%
Total	37,000	430	1.2%

Hygiene Indicator

Measures microbiological out-of-specification finished product occurrences.

Hygiene Indicator = The number of confirmed occurrences of finished product not within specification due to microbiological issues.

Which Considers:

1. All finished product not released due to microbiological contamination.
2. The number of occurrences of this type of event.  This measure is not the number of cases of product affected.

Right First Time Batches

Measures the parts per million (ppm) of batches produced within specification and do not require an adjustment. It is an indicator of process precision and accuracy.

Right First Time Batches (RFT)= (Number of batches produced not requiring adjustment / Total batches) * 1,000,000

Which Considers:

All batches produced.

Example:

Total number of batches produced = 5,000

Number of batches requiring adjustment = 2

RFT =  {(5000 – 2) / (5,000) } * 100 = 99.96 %

Finished Goods Rejected

Measures the parts per million of finished goods rejected.

Finished Good Rejected = (Cases of finished goods rejected / Total Cases) * 1,000,000

Which Considers:

All cases are produced on all lines.

Example:

Total cases produced = 770,000

Number of cases rejected = 200

Finished Goods Rejected = (200 / 770,000) * 1,000,000 = 259 ppm

Raw Materials Reject Rate

Measures the rate of out-of-specification raw materials.

Raw Materials Reject Rate = (Total pounds of raw materials rejected ) / (Total pounds of raw materials received) * 1,000,000

Which Considers:

All receipts of raw materials, whether received in bulk or individually packaged (i.e. drums, bags, intermediate bulk containers, etc.), are out-of-specification.

Example:

Total pounds received of all raw materials = 8,000,000

Total pounds rejected = 40,000

Raw Materials Reject Rate = ( 40,000 / 8,000,000) * 1,000,000 = 5,000 ppm

Packaging Material Reject Rate

Measures the rate of out-of-specification packaging components.

Packaging Materials Reject Rate = {(The number of rejected packaging components) / (The total number of packaging components received)} * 1,000,000

Which Considers:

All defects as specified in the Quality Policy for packaging components. This includes Critical Defects, Major Defects, and Minor Defects.

Example:

The total number of packaging components received = 27,500,000

Number of packaging components rejected = 20,000

Packaging Components Reject Rate = (20,000 / 27,500,000) * 1,000,000 = 727 ppm

Part 2, located here