TRW HS&E Annual Report

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2008 Interactive Health, Safety and Environment Report the TRW AUTOMOTIVE Health, Safety, Environment and Security Program


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Table of Contents 4 Letters to the Stakeholders 6 Health, Safety & Environment Alignment with the Business: An Introduction 8 Health, Safety & Environment: Program Overview and Back-to-Basics Integration 11 TRW HS&E Management Systems: An Introduction 13 Safety Excellence: An Overview 16 Behavior-Based Safety: One-on-One Coaching 19 Ergonomics 21 Safety Leadership 24 Environmental Excellence: Introduction 26 Product Stewardship 29 Environmental Remediation 31 HS&E Cost Determination and Reduction (CDR) and Energy Reduction: Overview 35 Energy and Water Reduction Program 38 Greenhouse Gas (GHG) Emissions 40 Environmental Release/Natural Resource (ERNR) Metric: Introduction 44 Select HS&E Data Tables 50 Value-Added: Global Health, Safety, Environment & Security Program

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March 2009

Dear Stakeholders:

While the year ahead poses many challenges, the year behind us is one of accom-

plishment.

In the past, TRW has reiterated its commitment to stewardship of its own

resources and those of the environment. Two key measures of an organization’s commitment to health, safety and the environment are its employee total recordable incidence rate (TRIR) and the percent of waste it is able to reclaim and recycle. In 2008, TRW’s TRIR dropped 18 percent from 1.53 to 1.26 per 100 employees, and its waste recycling or reclamation rate increased in 9 of 11 waste categories.

This report tells the story of TRW’s health, safety and environment (HS&E)

efforts in 2008 -- but it does more than that. 2008 is one chapter in the ongoing story of TRW’s belief that it can manage its business to profitability by continually adding to the world’s broadest portfolio of active and passive safety systems. It is also a chapter in the company’s continuing effort to integrate health, safety and environmental considerations into its design, manufacturing and product retirement processes.

Please know that despite the economic downturn, TRW remains committed to

its HS&E programs. While the downturn is short-term, TRW intends to continue to protect its employees and the environment in a long-term and sustainable manner. Sincerely,

Steve Lunn Chief Operating Officer TRW Automotive

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March 2009

Dear Stakeholders:

We are pleased to bring you good news about TRW’s health, safety, environmental

and security (HS&E) performance in 2008.

In this report, you will find descriptions of TRW’s HS&E philosophy and the

programs we have in place to help us manage our product design, manufacturing and reclamation/retirement processes. This report also describes our efforts to provide safe workplaces for employees and healthy environments for the communities in which we operate. As you read, you’ll learn more about Safety Excellence and our participation in the Back-to-Basics program, both of which engage employees in the workplace in protecting their own health and safety.

At this time, the entire management team of TRW and I would like to recognize

and thank the many thousands of employees throughout the company who have assumed leadership roles in HS&E programs. Your enthusiasm and suggestions for continuous improvement have made a positive difference in our facilities, and we look forward to your participation in the coming year.

Finally, we will not be printing the 2008 Interactive Health, Safety and Environ-

ment Report this year as both a measure of environmental responsibility and due to the need for the business to conserve expenditures. Please enjoy this new online edition, which gives us the chance to keep you up to date regarding many exciting TRW programs and accomplishments. Sincerely,

Thomas Koenig Vice President, Global HS&E TRW Automotive

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Health, Safety & Environment Alignment with the Business: An Introduction In TRW, the business goals are simple:

all of these HS&E systems or processes

and innovative technology, the

best quality, lowest cost, global reach,

are ultimately aligned with the TRW

HS&E Strategy of “Pursuing

and innovative technology. These

business strategy.

Excellence and Building Value� is

four goals drive the TRW continuous

To support the TRW goals of

being implemented by addressing

improvement process. The Health,

best quality, lowest cost, global reach,

four strategic priorities with the

goals and the strategies to achieve them. In this report, you will find descriptions of the HS&E processes and organization

TRW Automotive Goals and Strategy HS&E Goals and Strategy HS&E Processes and Organization Critical Systems and Tools

ENABLERS

Program is well integrated with these

DRIVERS

Safety & Environment (HS&E)

and see major systems and tools that help TRW achieve both its business and HS&E goals. As shown in Figure 1,

Figure 1. It all starts with the TRW Automotive goals and strategy to drive change and ensure business integration.

6


HS&E program (see Figure 2). These strategies have been in place for several years and are anticipated to remain for the foreseeable future. These strategic priorities encompass the entire value chain and are designed to: 1. Ensure governance and assurance with HS&E laws and regulations as well as customer requirements, 2. Drive HS&E performance improvement and

1

3

Ensure HS&E Compliance

Reduce HS&ERelated Costs

HS&E Excellence

Governance and Assurance

4

2

Ensure Functional Efficiency and Drive Business Integration

Reduce HS&ERelated Risks/Impacts

risk reduction, 3. Identify emerging issues, and 4. Create sustainable HS&E

Performance Improvement

Emerging Issues and Sustainability

Figure 2. Focusing on these four strategic HS&E priorities drive TRW towards HS&E excellence.

Excellence throughout TRW’s more than 200 facilities worldwide. This drive towards excellence will help TRW continue towards reaching implementation of the triple bottom line. By focusing on the environmental

TRW Automotive Success and HS&E Performance Concept of Sustainability — Triple Bottom Line

Environment

and social aspects as well as the economic considerations of the business, the operations become more sustainable

Economy

Resource Efficiency/ Cost Reduction

Risk Minimization

Profitability

Reputation Management

(see Figure 3). During the current business

Innovation

downturn, these strategic objectives and

Employees

targets are more important and relevant than ever as we manage the business.

Social Aspects

The rest of this report highlights TRW’s Safety Excellence, Product Stewardship, Environmental Remediation and Cost & Energy Management efforts, all of

How HS&E Performance Contributes to TRW’s Automotive Success

Figure 3. The ability to sustain the business economically, socially and environmentally, the triple bottom line, is important to minimize HS&E risks, protect employees, enhance TRW’s reputation and reduce costs and resource usage objective.

which contribute to the triple bottom line and illustrate the company’s HS&E involvement.

7


Health, Safety & Environment: Program Overview and Back-to-Basics Integration TRW’s HS&E Program continues

for launching HS&E Excellence (see

employee health, employee safety, envi-

global implementation of health, safety,

Figure 4), a process that starts with the

ronment protection, and the company’s

environment, and security activities,

Chief Operating Officer and cascades

security. The risk reduction process has

and product stewardship. Increasingly,

throughout the organization down to

expanded to encompass product design,

these efforts are integrated into engineer-

first-line supervisors and employees.

material specifications and purchase and

ing, production, purchasing and quality

The Safety Excellence (SE) program

now progresses through all aspects of the

systems. In short, HS&E awareness

was developed in 2006, and implemen-

manufacturing process to finally focus

has become a way of life for TRW

tation began in 2007. The path has now

on the disposal of manufacturing wastes

employees.

broadened in 2008 to include Environ-

and retired products. However, the

Integrating HS&E activities has

mental Excellence (E2) programs.

culture of sustainability only truly begins

helped TRW operations improve their

The drive towards excellence encour-

when both employees and the company

operational efficiency. The integrated

ages a culture of sustainability that starts

respect HS&E as a core value.

approach also provides the foundation

with HS&E risk reduction that includes

Described below are the elements of both SE and E2, all of which are supported by the HS&E Management Systems (MS).

Safety Excellence

Environmental Excellence

Health

n Safety Excellence (SE). SE

has been

an evolution within TRW to bring its safety performance to a sustainable world-class level of a TRIR of one or Employee Behavior-Based Safety Ergonomics Safety Program Safety Leadership

Product Stewardship Environmental Remediation CDR & Energy Management Management System

Health Promotion Adverse Health Prevention Medical Services Work-Life Balance

less and to ensure effective prevention of the most severe injuries to employees. SE is the TRW approach for reaching sustainable world-class safety performance by fully implementing:

In Progress

Figure 4. TRW has established a continuing path toward achieving excellence, one that addresses safety of employees, environmental protection, and health of the workforce.

Implementation Started

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• Behavior-Based Safety (BBS).

safety program elements have been

• Remediation. This program focuses

The behavior-based safety program

revisited and reinvigorated. The

on addressing the legacy environ-

has increased employee involvement

Safety Leadership program comprises

mental issues created as a result of

and improved the depth of discus-

many parts of the HS&E MS, from

100 years of manufacturing. The re-

sions with employees on safety. The

leadership to employee involvement.

mediation program is supported by

use of a BBS system is a part of the HS&E MS in HS&E 03, Employee

HS&E 06, Management of HS&E n Environmental Excellence (E2).

Involvement. • Ergonomics. The continued

Risks and in particular the specific

E2 is the TRW’s stewardship process,

requirement for the Protection of

which is demonstrated in the reduced

Soil and Groundwater.

use of natural resources (energy and • Energy and Water. The creation

implementation and refinement of

water), as well as reduced manu-

ergonomic programs has become an

facturing waste and less wastewater

of a new energy and water reduction

integral part of lean manufacturing.

generation. E2 is the TRW approach

program in late 2008 will help the

By training employees in ergonom-

for reaching sustainable world-class

company improve energy manage-

ics, from work station design to

environmental performance by fully

ment and reduce energy purchase

proper postures, the program has

implementing:

costs.

contributed to reducing employee • Product Stewardship. The Product

• Cost Determination and Reduc-

implementation of the ergonomics

Stewardship activities go beyond the

tion (CDR). This program drives

program is a part of the materials

removal of heavy metals and other

continuous improvement by using

supporting HS&E 06, Management

substances of concern; they demon-

a range of tools to eliminate wastes

of HS&E Risks.

strate a commitment to producing

in tandem with systematically

more environmentally sustainable

driving risk reduction. Both the

products. The development and

energy and water reduction program

the Chief Operating Officer and his

implementation of the Product

and the CDR program are driven

direct reports, a new level of safety

Stewardship program comprises two

by HS&E 08 and are integral to

leadership and a safety culture has

elements in the HS&E MS, HS&E

process improvement.

been established. Safety leadership is

11, HS&E and Supply Chain Man-

in the process of cascading a

agement, and HS&E 12, HS&E

Back-to-Basics

commitment to safety down to all

and Product and Process Design.

Back-to-Basics (B2B) was started in

injuries. The development and

• Safety Leadership. Starting with

the business units and the manufacturing and engineering facilities. As

2008 and is the TRW methodology for

further improving operating efficiencies

part of safety leadership, the existing

and reducing waste. The B2B program

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Plant Communication Center: • Key plant-wide performance metrics such as HS&E, production, quality, delivery and cost • All work cell performance on a daily basis HS&E is fully integrated and part of B2B: • Work Cell and Plant Communication boards, where key HS&E metrics are recorded and reviewed as Figure 5. A B2B Communication Board is used by supervisors and managers to track HS&E performance and identify areas requiring attention.

the first measure of performance • Plant Manager Training Program,

is working to improve communication

plant level: safety, quality, delivery,

where SE is integrated into the TRW

throughout the manufacturing process,

effectiveness, waste elimination, and

training and philosophy

increase operating leanness, and better

housekeeping. To improve commu-

develop management talent. B2B

nication during the B2B reviews, the

implementation, where ergonomics

incorporates elements of:

team members present the following

are taught and integrated into all

• the TRW Operations Excellence

information and then take action on the

aspects of lean manufacturing

roadmap • plant manager development

• Lean manufacturing design and

manufacturing cell and/or plant level (see Figure 5).

In summary, the improvement in

• lean manufacturing and lean line

communications and production

design (the process to improve

Work Cell Information Boards:

efficiency driven by B2B is essential

manufacturing efficiency)

• Key performance metrics such as

during these challenging economic

• manufacturing cell information boards and plant communication centers • a layered audit process As a part of B2B, each TRW plant

HS&E, production, quality, delivery

times. Making HS&E an integral part

and cost

of B2B yields many benefits: lower

• Hourly production performance

employee injury rates, better morale,

• Trend performance

reduced absenteeism, consistent product

• Action plans

quality, and improved productivity.

conducts six fundamental reviews daily,

You can learn more about changes in

both at the cell or line level and at the

the TRW HS&E Program by visiting: http://corpnet.trw.com/hse.

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TRW HS&E Management Systems: An Introduction The HS&E Management System (MS)

Updates to the HS&E MS

Revised Specific Requirements

is TRW’s “backbone” for managing and

Each year, the Global HS&E Team,

and Guidance:

reducing HS&E-related risks. The MS

as a learning organization, by design

• HSE03, Employee Involvement –

serves to implement the Health, Safety,

considers enhancements to the system

modified to emphasize expectations

Environment and Security Policy and

to address newly identified program

regarding the use of BBS process

is available in more than 10 languages

needs and to maintain its effective-

approaches other than the TRW-

by visiting http://corpnet.trw.com/hse.

ness and efficiency. The changes to the

sponsored BBS process

If you do not have access to the TRW

management system can originate from

Intranet, visit http://www.trwauto.com/

requirements outside the company, such

Management – changed to include

who_we_are/health_safety_environ-

as governmental regulations and cus-

a range of changes to enhance this

ment to view all HSE&S Policies. The

tomer requirements, or can be generated

requirement

Policy establishes the Company’s HSE&S

internally from the findings of the audit

• HS&E6-SR-67, Management of

Vision, Mission, Means of Execution,

program and bench-marking. The issues

Plating Systems – revised to add

and Responsibility for implementation of

are prioritized, requirements or guidance

coverage for the plasma transferred

Policy requirements (see Figure 6).

developed for the top priorities, and the

The HS&E MS empowers the busi-

changes are made. The 2008 changes

ness unit and facility management teams

to the management systems include

to incorporate their HS&E efforts by

the following:

providing the controls needed to stay on task and on target in the area of HS&E. Supporting the HS&E MS is a series of Specific Requirements and Guidance

New Specific Requirements

• HSE06-SR-65, Hazardous Materials

TRW Automotive Health, Safety, Environmental and Security Policy

Vision

Execution

The TRW Automotive HS&E system and performance will be recognized by our employees, customers, shareholders and the communities in which we operate as protecting our employees and our community while adding value to our business.

TRW Automotive will execute a World Class HS&E Management Program by:

Mission

and Guidance:

TRW Automotive will therefore manage Health, Safety and the Environment in all its operations and functions/activities as to:

• HSE06-SR-67, Chemical Plating

Comply with legal and regulatory requirements,

Comply with Customer requirements,

Reduce work related health & safety impacts to

documents, all of which are

Systems – establishes equipment

incorporated in the TRW Business Policy

requirements and operating

Reduce HS&E impacts for the entire value chain,

Consider the life-cycle HS&E impacts when design-

procedures

Manual. These documents are published on the internal HS&E website. If you

employees, •

Reduce adverse environmental impacts,

Achieve operating conditions that minimise costs and HS&E risks

ing its products, Continually Improve and Measure its HS&E Systems and Performance,

• HSE06-G-71, Ergonomics –

have access to the TRW Intranet visit

formally links ergonomics to the

the HSE&S Management Systems at

MS and provides the structure for

http://corpnet.trw.com/hse.

the ergonomic process

11

Maintain the Security of its Employees and Facilities

Developing & Implementing an Integrated HS&E Management System,

Engaging and supporting all our employees in achieving our vision,

Ensuring Management Ownership and Accountability,

Establishing meaningful HS&E metrics and targets for performance, and

Sharing global resources, knowledge, best practices and lessons learned.

We will measure progress, are committed to deploying Six Sigma and living the TRW Automotive Behaviors.

Responsibility Management, at all levels, is responsible for the implementation of this policy within their areas of control. Managers are expected to take ownership and ensure that HS&E is integrated into the management of their business. The management of the company takes overall responsibility for this policy. Authority for leading and measuring its implementation is delegated to the HS&E executive of TRW Automotive.

HSE&S Policy Version 1.0 August 1, 2003

Figure 6. TRW’s Health, Safety, Environment & Security Policy established that the company is committed to employee well-being, a healthy environment and secure facilities.


arc (PTA) process and a number

at each manufacturing and engineering

tion at 92 percent. Although the MS

of revisions

facility is the primary means of measur-

implementation steadily increased, it has

ing implementation. Two – the TRW

leveled off recently as TRW has added

Chain – made content changes

Management Systems audits are

facilities and has created additional

regarding legal requirements and

completed at each manufacturing and

requirements.

the TRW restricted and prohibited

engineering facility on average once

substances list

every 3 years. Both methods utilize a

• HSE11, HS&E and Supply

• HSE12, HS&E and Products and

defined protocol to ensure consistency.

Process Design – incorporated

Results of the MS self-assessments

updates to the TRW restricted and

or the MS audits, whichever is more

prohibited substances list

recent, are utilized to determine if the implementation level meets the annual

Results and Accomplishments

target. As shown in Figure 7, the target

The HS&E MS’s benefits to the com-

level of implementation for the HS&E

pany are measured in two ways. One –

MS at the end of 2008 was 95 percent,

the self-assessment by staff twice a year

with the average level of implementa-

Percent Management Systems (MS) Implementation

100% 87%

90% 80% 70% 60%

80%

77%

75%

87% 85%

Figure 7. The progress in MS implementation continues even as the requirements of the HS&E Management System have increased over the past several years.

89% 90%

90%

95%

91%

95%

70% 60%

50% 40% 30% 20% 10% 0% 2002

2003

2004

2005

2006

Year MS Implementation Score

MS Implementation Objective

12

2007

2008


Safety Excellence: An Overview As the premier supplier of active and passive automotive safety systems in the world, the same philosophy of safety is apparent in TRW’s manufacturing and management systems. As shown in Figure 4 on page 8, SE is the next step in the HS&E excellence journey. SE engages all levels of employees in safety both actively (i.e., safety leadership) and passively (i.e., engineered controls). Just as TRW strives for excellence as an automotive parts supplier, it strives to ensure the safety of its workforce.

Why Pursue SE A culture of excellence supports a sustainable business model. Achieving and sustaining excellence in safety is hard work. It requires the efforts of many focused on a variety of safetyrelated factors, such as: • The influence of each individual’s values and experiences and that of TRW’s organizational culture on workplace behaviors • The risks presented by the manmachine interface, known as ergonomics

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Results and Accomplishments

to address a work-related medical

make clear the importance and value

Pursuit of excellence in safety can be

condition. The Severity Rate is

of striving for excellence in safety

measured in many ways. The three

reported as a ratio of work-related

• The need for the active involvement

measures TRW relies on are the Total

injury/illness lost and restricted days

of all employees in ensuring their

Recordable Incident Rate (TRIR), the

per 100 employees.

own safety and that of their co-workers

Severity Rate, and the Lost Workday

The LWIR is a subset of the TRIR

Incident Rate (LWIR).

and describes only the impact that

While taking pride in past improve-

TRIR describes how frequently TRW

workplace incidents have in employee

ments, TRW recognizes the necessity

has workplace incidents that result in

days away from work to address a

of challenging the organization to

employee days away from work or medi-

work-related medical condition. The

achieve and sustain world-class perfor-

cally required work restrictions to ad-

LWIR is reported as a ratio of work-

mance. This effort is described as SE.

dress a work-related medical condition.

related injury/illness lost days per

Achieving excellence in safety requires

The number of incidents is reported as a

100 employees.

a culture where safety is considered a

ratio of work-related injury/illness cases

Figure 8 demonstrates that the efforts

value. This can only happen when

per 100 employees.

to continuously reduce the frequency

everyone is involved, at each TRW

The Severity Rate describes the

of injuries have netted real results. Over

facility, within each department, and

impact that workplace incidents have

the past nine years, the TRIR has been

in a manner that involves every

in employee days away from work or

reduced from 3.47 to 1.26 per 100

employee at all levels.

medically required work restrictions

employees, the Severity Rate has been

• The need for business leaders who

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4.50

70.0

Continuous Improvement 2000: Launch of HS&E MS

4.00

Continuous Improvement 2007: Launch of Safety Excellence

62.1

60.0

50.1

50.0

3.00

45.5 41.0

2.50

38.6

40.0

36.1 33.0

34.3

2.00

30.0

28.6

Severity Rate

Total Recordable Incident Rate (TRIR) Lost Workday Incident Rate (LWIR)

3.50

1.50 20.0 1.00

15.6 10.0 3.04 2.35

2.57 1.88

2.12 1.57

1.67 1.28

1.64 1.23

1.72 1.34

1.53 1.21

1.26 1.06

1.04 0.85

0.00

3.47 2.5

0.50

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009 YTD

0.0

Year TRIR

LWIR

Severity Rate

reduced from 50.1 to 28.6, and the

While Figure 8 demonstrates a good

LWIR has been reduced from 2.50 to

improvement in the safety record from

1.06. These reductions have had an

2002-2004, the TRIR remained flat

obvious effect on employees and their

from 2004-2006 and the severity rate

development of a new program, safety

families. It also has a very positive effect

actually increased. To improve and

leadership. The following sections

on the business through employees

then to achieve and sustain world-class

explore these three key program areas

being more engaged in their own safety

health and safety performance, TRW

that comprise SE.

(employee involvement), higher

started the development of SE in 2006.

employee morale, lower operating costs,

SE incorporated two existing programs,

and sustainable product quality.

BBS and ergonomics, and involved the

15

Figure 8. The long-term improvement in TRIR and total LWIR shows that TRW employees are more engaged in their own safety.


Behavior-Based Safety: One-on-One Coaching The Behavior-Based Safety (BBS) pro-

ing at their facilities, but have continued

The Design of BBS

gram is the first of three key areas in SE.

to refine their skills through updated

BBS has been designed to increase

By the end of 2008, more than 60 TRW

training. In 2008, these BBS observers

employee understanding of how they

facilities in 13 countries were participat-

conducted more than 86,000 observa-

can contribute to their own and their

ing in BBS. What best demonstrates this

tions, which means they initiated on

colleagues’ safety by their behavior. In

high level of employee involvement in

average more than 300 conversations

about 90 percent of all injuries, people’s

BBS is the number of employees at these

per day regarding the safety of their

at-risk behavior has been identified as a

facilities who were involved as active

fellow employees (Figure 9).

contributing root cause. “At-risk

Figure 9. After a BBS observation, employees provide feedback to a work cell colleague.

behavior” must be understood as a

observers. More than 2,300 employees not only participated in the initial train-

neutral term that describes an action rather than criticizes or blames a person.

To further reduce injuries, at-risk

behaviors must be identified and turned into “safe” behaviors. This is achieved by a systematic study process where activities are observed and the behaviors that relate to safety are discussed in a positive, constructive, non-confrontational manner. With BBS, workers displaying at-risk behaviors are not chastised, they are motivated to correct them. Participants learn more about safe work practices, identify improvement opportunities, increase teamwork, and heighten their commitment towards safety, among other benefits. The results are empowered employees who take ownership for their own safety and develop a strong safety culture. Ongoing management commitment has helped make the BBS program a success.

16


see regarding the results of the BBS

The BBS process produces a range

process. This data helps management

of data about behaviors. Figures 10

identify improvement opportunities in

and 11 provide two examples of

the overall HS&E program, from train-

what management and employees

ing to developing new or revised work

Critical Performance Checklist (CPC) Elements

Results and Accomplishments

0

Figure 10. In 2008, the “at-risk� behaviors (hashed tips) were identified as a small minority of the total behaviors observed, and decrease as SE is implemented.

1,146 832

68,193 68,076 59,400 65,922 62,749 50,717 62,023 34,930 55,237 54,207 47,089 65,070 45,847 35,571 43,201 69,111 44,435 62,594 56,284 61,950 59,852 56,902 24,992 61,054 20,798 53,763 20,333 45,758 61,650 36,929 19,994 43,201 43,175 45,850 36,299 32,399 59,614 57,331 58,511 55,071 58,936 49,304 60,300 49,525

1.1 Eyes on Path 1.2 Eyes on Work 1.3 Stable Surface 1.4 Lifting 1.5 Overexertion 1.6 Line of Fire 1.7 Rushing/Shortcuts 1.8 Ascending/Descending 1.9 Pinch Points 1.10 Overextending 1.11 Path of Travel 1.12 Awkward/Cramped 2.1 Walking/Working Surfaces 2.2 Barricades/Warning 2.3 Obstructions 2.4 Housekeeping 2.5 Awkward/Cramped 2.6 Lighting 2.7 Ventilation 3.1 Selection 3.2 Use 3.3 Condition 3.4 Vehicle Operation 4.1 Eye and Face 4.2 Head 4.3 Hands 4.4 Fall Protection 4.5 Body Protection/Coveralls 4.6 Shoes 4.7 Hearing Protection 4.8 Respirator Protection 5.1 Pre-Job Inspection/Planning 5.2 Adequate Personnel 5.3 Communication 5.4 Complying with Lockout/Tagout 5.5 Complying with Permits 5.6 Written Procedures 6.1 Hair 6.2 Clothes 6.3 Jewelry 7.1 Floor 7.2 Equipment 7.3 Storage of Materials 7.4 Disposal of Materials

instructions and procedures.

1,655 2,124 1,763 1,426 1,426 759 1,158 1,686 1,895 2,276 1,578 1,019 3,243 6,034 1,966 2,065 2,604 652 1,023 1,828 1,223 2,074 703 1,169 537 624 893 883 698 423 716 409 475 282 654 477 618 1,913 2,724 844 2,009 1,232

10,000

20,000

30,000

40,000

50,000

60,000

2008 Observation Count Number of Acceptable Behaviors

17

Number of At-Risk Behaviors

70,000

80,000


TRW adapted this behavior descrip-

sidered “acceptable.” The facilities that

tion measurement from an industry-

energetically and successfully participate

standard to measure safety performance.

in BBS now show acceptable behavior

The data in Figure 10 demonstrates that

rates at above 99 percent.

about 97 percent of the total observed

behaviors across the entire company

a refinement can be made in the data to

were considered as acceptable or “safe.”

identify the top five “at-risk” behaviors.

This percent of acceptability does

Based on Figure 11, 2,276 conversations

vary among facilities. At facilities new

were initiated about Awkward/Cramped

to the BBS process, usually 90 percent

Work Spaces and how to work more

of the total observed behaviors were con-

safely in them. These conversations help

From the data shown in Figure 10,

both facilities and the HS&E determine Figure 11. Based on the 2008 data in Figure 10, the BBS process can identify the top five “at-risk” behaviors to help facilities train and work with employees.

the root cause and drive solutions.

Value-Added – BBS Strategy BBS is not a stand-alone program but is

7,000

aligned with other TRW safety programs 6,031

such as ergonomics and safety leadership. BBS helps by driving communication throughout the organization. In

5,000

some facilities, these BBS observations 4,000

have contributed to quality enhance-

3,243 3,000

2,723

2,603

ments. BBS is not a “quick fix,” but is a way to deliver long-term and sustainable

2,276 2,000

changes to employee behaviors related to safety. The result is a strong, sustainable

1,000

safety culture and a tool to help improve safety performance. oo

2.

7

Ve n

7.

til

1

at

pi ee ek us 2. 4

Ho

Fl

io n

ng

ns io ct ru st Ob

3 2.

12

Aw Cr kwa am rd pe / d

r

0

1.

Number of “At-Risk” Behaviors

6,000

Critical Performance Checklist (CPC) Elements

18


Ergonomics The Ergonomic Risk Management Process (Ergonomics) program is the second of three key areas in SE. In 2008, more than 42 TRW facilities in 10 countries were conducting ergonomics training. What best demonstrates this high level of employee involvement in ergonomics is the number of workshops and process improvements identified and made at these facilities. Since the ergonomics process was started in TRW in 2002, it has been enhanced through a wide range of efforts to apply it globally and make it a sustainable process.

• Model Ergonomics Process: This

• Ergonomic Resources Library:

process helps facilities develop and

HS&E makes available a variety of

Ergonomics – The TRW Approach

implement location-specific ergo-

multimedia, multi-language resources

Ergonomics is an enabling technology

nomics risk management processes.

via the company website.

that applies human performance principles to prevent or reduce

• Ergonomics Workshop Process:

Results and Accomplishments

muscular-skeletal disorder injuries

This process helps to drive ergonomics

In 2008, the ergonomics program gener-

in the workplace. When ergonomic

implementation through integration

ated the following accomplishments:

techniques are done well, facilities

with the lean manufacturing process.

• Existing ergonomic program elements

see a decline in operating costs as employee absenteeism and sick leave

were formally integrated into the TRW • Ergonomics Training Programs:

HS&E Management System within

drop. Optimizing ergonomics requires

Several levels of ergonomics training

Element HSE06 – Risk Management.

an integrated process that involves

programs are offered for work cell

The TRW HS&E Management

HS&E, product engineering, manu-

employees, technicians, supervi-

Systems Audit process is used to

facturing engineering, maintenance,

sors, and managers in the plant to

evaluate facility ergonomics activities.

plant management, and employee

engineers, Lean Promotions Officers

teams. TRW’s Ergonomics Risk

(LPOs), and HS&E professionals

in the number of TRIR cases and

Management program relies on:

in the office.

the severity of injuries in relation to

19

• Achieved significant reductions


the total number of lost and restricted

• Initiated an ergonomics workshop

days (see Figure 12).

performance metric, and perfor-

requirements and provided appropriate

mance indicates positive balance

tools and training courses throughout

an ergonomics improvement work-

of process improvements and

the business on ergo principles, tools

shop process that provides websites

cost reductions.

and techniques.

• Defined and successfully launched

with a structured approach to support

• Further defined training needs and

• Collected ergonomic lessons

• Increased participation in the

the company’s Operations Excellence

learned and successes from

“Ergo Hit List” (posture

Workshops by identifying, assessing,

Ergonomic Improvement Work-

recognition) training.

prioritizing and managing ergonomic

shops and shared these throughout

risks.

the business (TRW Best Practice

eLearning modules for the

Forums).

“Ergo Hit List” and “Ergo Basics

• Successfully completed 16 workshops globally that resulted

• More than doubled the number of

• Completed development of

Refresher” training courses,

in the identification of 244 process

improvement actions implemented

with online training launched

improvements and process cost

in 2008 compared to 2007 at manu-

in January 2009.

reduction opportunities of more

facturing and assembly operations;

than several hundred thousand

these actions identified and reduced

dollars.

exposures to ergonomic risks. Reduction in Number of Ergonomic-Related Total Recordable Incident Rate (TRIR) Cases Reduction in Number of Ergonomic-Related Total Recordable Incident Rate (TRIR) Cases% TRIR Cases Number of Cases

2007 Data 2008 Reduction Goal 2007 Data 2008 Data 2008 Reduction Goal Reduction 2008 Datain Number of Cases (2007 to 2008) Reduction in Number of Cases Reduction Percentage (2007 to 2008) Reduction Percentage

25% % TRIR Cases

229 Number of Cases -10% 229 156 -10% -72 156

25% 21% 21%

Value-Added – Ergonomics Risk Management Strategy Implementation of the ergonomics risk management strategy and associated improvement actions will continue to drive the long-term sustainability of the SE culture, injury reduction and productivity improvement. As the

-72 -31%

ergonomics process is further imple-

-31%

mented, sites will continue to benefit

Reduction in Severity of Ergonomic-Related Cases Total in Number of Lost & Restricted DaysCases Reduction Severity of Ergonomic-Related Total Number of Lost & Restricted Restricted Days% of Total Lost & Lost & 2007 Data 2008 Reduction Goal 2007 Data 2008 Data 2008 Reduction Goal Reduction 2008 Datain Total Lost & Restricted Days (2007 to 2008) Reduction in Total Lost & Reduction Percentage Restricted Days (2007 to 2008) Reduction Percentage

LostWorkdays & Restricted Workdays 7,247 -400 days 7,247 4,102 -400 days -3,145 days 4,102

from reduced numbers of employee injuries and lower operational costs.

Restricted % of TotalWorkdays Lost & Restricted Workdays 39% 39% 28% 28%

-3,145 days -43% -43%

20

Figure 12. The 2007-2008 ergonomics data shows a sustained reduction in both the number of ergonomics-related injuries reported and in the number of days that employees were absent from work due to these injuries.


Safety Leadership Business Unit: Safety Leadership Module 1 Workshop (1/2 Day)

Safety Leadership program is the third of the three key areas within SE. Beginning in 2007, TRW started implementation of a series of Safety Leadership Workshops. These workshops systematized TRW’s safety resources and approach,

Repeat with all leaders and employees

providing business leaders with a focused message and tool kit to address the safety process at their business units. The SE initiative engages all levels of management

Safety Leadership Workshop Model

Site Management Team: Safety Leadership Module 1 Workshop (1/2 Day)

from corporate executives to first-line Site Management Team: Safety Leadership Module 2 Workshop (1/2 Day)

Site Employees: Safety Leadership Modules 3 & 4 Workshops (2 Hours)

supervisors. At TRW, Safety Excellence is synonymous with doing work “the right way,” as shown in Figure 13.

Figure 14. At TRW, business leaders devote almost two full days to participating in Safety Leadership Workshops. Figure 13. Employees are reminded to keep safety in mind when they see this graphic on posters displayed in their workplaces.

ity of the efforts are directed towards

The Role of Leadership in Ensuring Workplace Safety

providing all levels of TRW leaders with

Safety Leadership Workshops provide

Safety Leadership Drives Sustainability

the training and support to more effec-

leaders with an understanding of the

tively lead the safety process. The result

need to pursue SE, the characteristics of

The Safety Leadership initiative is

of these endeavors will be lasting change

an organization that has achieved the ob-

focused on improving upon three core

to the organization’s culture. Today,

jective, and the leadership principles and

areas of the safety process. To drive

employee safety is measured in lost days,

actions of leaders who wish to influence

safety leadership takes the involvement

injuries and dollars lost. The goal of a

the culture of their organization. The

in leadership at all levels, the engaging

safety culture is to create this as a value

implementation of SE is based upon the

of employees in BBS, and the further

that is so basic that measurement of in-

model outlined in Figure 14.

strengthening of the HS&E MS.

juries will almost become an unnecessary

objective.

Safety Leadership Workshops involving

All three SE areas have a range of

activities on-going; however, the major-

21

In 2008, TRW conducted 200


more than 2,100 employees at more

in the workplace, increase under-

than 40 facilities. The four workshop

standing of the incident causation

modules consisted of the following:

cycle, and introduce tools for identifying strategies to change individual

• Safety Leadership for the Business

and organization behaviors that

Unit is for the Vice President and the

result in workplace injuries.

management team. It is focused on introducing the foundation principles

• Safety Leadership Modules 3 & 4 are

need by management to more

for non-supervisory employees and

effectively lead the safety effort.

introduce concepts, tools, and needed skills similar to those discussed during

• Safety Leadership Module 1 is for

management team Modules 1 & 2.

Site Management Teams and first-line

However, Modules 3 & 4 emphasize

supervisors and is focused on introduc-

the need for each employee to take

ing the foundation principles needed

action to address risks encountered in

by all supervisory employees to ef-

the workplace and to become actively

fectively lead the safety effort. Much of

involved in preventive measures, such

the discussion and workshop activities

as hazard identification and corrective

are oriented towards understanding

actions.

the current safety culture, and learning

In support of the employee-orient-

how to set the stage for moving toward

ed Safety Leadership Modules 3 & 4, a

one that leads towards sustainable

series of workshop safety posters have

excellence in safety.

been developed to raise awareness and reinforce concepts discussed during the

• Safety Leadership Module 2 Figure 15. SE posters help reinforce a safety culture at facilities.

training. Figure 15 shows some of the

continues the discussion begun

materials developed to support these

with leadership teams and centers

workshops.

on ensuring understanding of how workplace incidents and injuries

Results and Accomplishments

occur, and steps that leaders can

Since safety leadership began in 2007,

take to avoid similar problems in the

more than 225 workshops in 14 coun-

future. Discussion topics lead to

tries have been completed, as shown in

enhanced skills in identifying hazards

Figure 16. The success of these work-

22


shops is more than the large number of

Number of Workshops

workshops and the global distribution, it

Number of Attendees

is the fact these workshops engaged more than 2,000 business leaders. These leaders

Figure 16. Safety Leadership Workshops are helping to create a global Safety Culture at TRW.

were from corporate functions, many of the business units, and more than 50 manufacturing sites.

To further create sustainability,

the recent rollout of Safety Leadership Workshop modules for non-supervisory employees has helped thousands of emFigure 17. The rate of improvement in the TRIR is greater for facilities with leaders trained in SE vs. those facilities with leaders not trained in SE.

ployees to become more knowledgeable about the essential role they play in ensuring their own safety and the safety of those who work with them. As shown in Figure 17, the TRIR for the facilities that participated in SE shows improvement at facilities that have not participated in SE.

The implementation of SE leader-

ship activities will continue through 2010, resulting in all leaders at business units, engineering facilities, manufacturing, and

3 Total Recordable Incident Rate (TRIR)

a rate greater than the TRIR for those

2.5 2

2.62

1.71

1.5 1

1.53

1.27

0.5 0 2007

distribution locations becoming involved

Year

in efforts to implement and sustain the

TRIR for TRW Facilities Implementing SE

company’s excellence in safety.

TRIR for All TRW Facilities

2008

Value-Added – Safety Excellence

leaders become more effective in engag-

to workplace culture and sustainable

Achieving excellence in safety occurs

ing colleagues and employees to partici-

world-class safety performance. The goal

with leadership from all levels of man-

pate in ensuring their own safety and that

is to ensure that the company’s most

agement, from executives to first-line

of their fellow employees. If done well,

important asset, its employees, are ready

supervisors. With the help of SE initia-

this process can result in lasting changes

to safely work each and every day.

tives like Safety Leadership Workshops,

23


Environmental Excellence: Introduction Environmental Excellence (E2), as shown in Figure 18, is the second step in TRW’s HS&E excellence journey. E2 comprises Product Stewardship, Environmental Remediation, Cost Determination and Reduction (CDR), and the new Energy and Water Reduction Program.

Environmental sustainability, as

compared to the sustainability of a “safety culture,” can require quite different processes. In terms of a manufacturing company, sustainability is defined as using processes capable of being continued with minimal longterm impact on the environment. Environmental impact includes air emissions and wastewater discharges, and wastes generated from the manufacturing process.

In TRW, when it comes to environ-

mental sustainability, protection, and risk reduction, it is the HS&E management systems that are relied upon to support the E2 programs and improvements. More than Safety Excellence, E2 must engage all elements of the

24


business (e.g., engineering, purchasing) and not just the manufacturing

Safety Excellence

operations in order to support a more sustainable business model.

Environmental Excellence

Health

Product Stewardship Environmental Remediation CDR & Energy Management Management System

Health Promotion Adverse Health Prevention Medical Services Work-Life Balance

E2 – The Elements of Sustainability In late 2008, TRW initiated E2 to

Employee Behavior-Based Safety Ergonomics Safety Program Safety Leadership

achieve more efficient use of natural resources and to reduce waste, with efforts focused on:

• Education

• Waste minimization/pollution

In Progress

prevention/waste reduction/risk

Implementation Started

reduction

• Energy efficiency/greenhouse gas

Figure 18. E2 is the second step in the TRW process towards achieving HS&E Excellence.

reduction

• Continued compliance with environmental legislation and

and seek solutions. E2 asks employees

• Energy and Water Reduction

regulations

to consider the environment in their

Supporting the components of E2

everyday choices and choose to be more

are the metrics systems for calculating

company’s environmental manage-

environmentally responsible.

greenhouse gases and for recording usage

ment system and manufacturing

of energy and water and the creation of

and facility processes

ty. Even during times of severe econom-

industrial wastewater and wastes:

ic challenge, TRW is working towards

• Greenhouse Gases (GHG)

E2 is a process – not a program – that

technological innovation, enhanced

• Environmental Release and

promotes environmental stewardship.

efficiency, and increased productivity.

The underlying premise of E2 is that

The following sections explore the key

the simple choices people make every

program areas that comprise E2:

day can and do make a difference. E2

• Product Stewardship

acknowledges that every person makes

• Environmental Remediation

an impact on the environment and

• Cost Determination and

• Continuous improvement of the

encourages education to raise awareness

E2 is key to improving sustainabili-

Reduction

25

Natural Resources (ERNR)


Product Stewardship Product Stewardship (PS) is the first

As the level of legislation has increased

ronmentally sustainable products that

of the three key areas within E2. The

globally, TRW has responded with a

reduce TRW’s environmental footprint.

initiatives within PS demonstrate TRW’s

comprehensive approach that spans all

TRW product designers take into con-

commitment to innovation by produc-

products, regions, and manufacturing

sideration regulatory requirements that

ing more environmentally sustainable

processes. The TRW PS program is

might apply to, or that might impose

products. PS is not just being advocated

built upon supplier integration, prod-

design restrictions on, TRW’s products

by regulators, Non-Governmental Orga-

uct design, management support, and

in the global marketplace, including

nizations (NGOs), and consumers, but

employee engagement.

the United States, the European Union,

also by proactive businesses. PS is about

TRW’s PS initiatives span the entire

Japan, Korea, China and Canada, as

creating the products that in turn allow

product life cycle, as shown in Figure

well as emerging requirements in certain

TRW customers to develop environ-

19. These initiatives demonstrate a

states in the United States. To meet these

mentally sustainable vehicles.

commitment to producing more envi-

regulatory challenges and to create product sustainability, TRW continues to: • Remove heavy metals and other

Product Design

hazardous substances from a wide array of its products (discussed in the next section) • Design for the environment by cre-

Product End-Of-Life

Sustainability

Materials Selection & Acquisition

Product Packaging

Product Use

ating more fuel-efficient products for hybrid and alternative-fuel vehicles

Design for HS&E To ensure that TRW’s products meet current and anticipated regulatory and customer requirements, HS&E considerations have been integrated into

Manufacturing

TRW’s Global Development Product Introduction Management (GDPIM)

Figure 19. The Product Stewardship Cycle influences decisions from design and material selection through product retirement.

26

system. The goal of the Design for HS&E Program is to continue to


integrate HS&E considerations into

is to convert TRW’s entire customer base

vehicles every year. Key hybrid-enabling

GDPIM through use of the standardized

and electronic product portfolio to be-

technologies that offer fuel savings and

HS&E Product Assessment tool, which

come lead free. The Lead-Free Electron-

environmental benefits are:

is to be used by Engineering on a global

ics Team has been working collabora-

• Electrically powered steering

basis through all phases of the product

tively with customer engineering teams

• Regenerative braking systems

and process development. This approach

since 2008 to review more than 130

is consistent with the requirements of

projects and potential designs affected

Electrically Powered Steering

TRW’s Business Policy Manual A68 –

by the new ELV deadline of December

In 2008, TRW launched its belt drive

HSE12, HS&E and Customers and

31, 2010.

Electrically Powered Steering (EPS)

Products. The evidence of the Design

While there are major challenges

system for the first major vehicle manu-

for HS&E is provided in the following

to converting to a lead-free soldering

facturer in North America to use this

sections.

process, the benefits are compelling.

technology. This technology offers fuel

In particular, the switch to lead-free

savings of up to 3.5 percent compared

Removing Hazardous Substances from Products – The Lead-Free Challenge for Global Electronics

significantly reduces the generation of

with standard hydraulic powered

hazardous waste from the manufactur-

steering gears. Electric steering also is

ing process, which reduces potential

among the technologies with the greatest

TRW continues to eliminate the use of

environmental impacts and lowers waste

potential to reduce CO2 emissions and

hazardous substances in the manufacture

disposal costs. Use of lead-free solder

enable further integration with other

of many of its products. This is done

also eliminates potential exposures to

electronically controlled systems to

to minimize potential adverse human

human health from leaded solder.

enhance vehicle safety and comfort.

health and environmental effects when

EPS is a key component of vehicle manufacturers’ and TRW’s sustainability

life. The biggest challenge in 2008, one

Fuel Efficiency and Greenhouse Gas Reduction

that will continue for the next several

TRW’s product portfolio continues to

of fuel per 100 km, or about 1 mpg,

years, has been to transition to lead-free

move in the direction of more sus-

compared with the traditional hydraulic

solder in electronic applications.

tainable products: products that offer

steering system. EPS systems have

TRW continues to work closely with

increased fuel efficiency and hence a

evolved through the initial solution of

its global customers to meet the latest

reduction in greenhouse gas (GHG)

electrically powered hydraulic steering

European End-of-Life Vehicle (ELV) le-

or CO2 emissions. TRW continues to

(EPHS), a hybrid approach that com-

gal requirements pertaining to lead-free

expand its range of hybrid-enabling

bined hydraulics with electronics, to

electronics. TRW has already designed

technologies and products that meet

column drive EPS and rack drive (higher

and mass produced lead-free electronics

the challenges of vehicle manufacturers

torque) EPS. With each offering, addi-

for some customers. The challenge now

who are offering more hybrid electric

tional environmental and other benefits

these parts reach the end of their useful

27

plans, given that EPS saves 0.3 liters


have been achieved, when compared to hydraulic steering systems. One of the key benefits of electrically assisted steering is the reduction in energy use. EPHS uses only 15 percent of the power of an equivalent conventional Figure 20. TRW’s expertise in power steering now extends to a new energy-efficient electrically powered gear.

hydraulic power rack & pinion (PR&P)

systems used in hybrid vehicles.

system, while EPS uses only 10 percent.

Regenerative braking systems capture

An EPS gear is pictured in Figure 20.

the kinetic energy that would otherwise

Energy use is reduced with the EPS

be lost to heat when the brakes are ap-

Electronic Stability Control to increase

system because it relies on an electric

plied and stores this energy in electric

vehicle maneuverability on curves.

motor to drive the steering column or

batteries for future use in a hybrid

steering rack and draw energy only when

platform.

assistance is needed. In a conventional

SCB replaces traditional boosters,

Product Stewardship – The Bottom Line

hydraulic system, the engine-driven

master cylinders and vacuum pumps

Through the product stewardship

pump draws energy constantly to main-

with an electro-hydraulic control unit

process, TRW is designing, engineering,

tain the system’s pressure whether or not

and a master cylinder reservoir de-

and manufacturing products that:

the driver is turning the steering wheel.

vice. This design produces fuel savings

• Eliminate hazardous substances

EPHS utilizes an electrically driven

by requiring fewer components than

• Increase fuel efficiency and reduce

pump to provide hydraulic pressure to

competitive systems, which translates to

the steering wheel only when needed.

weight savings and thus fuel savings. Like Electrically Powered Steering,

CO2 emissions • Reduce the company’s environmental footprint

Regenerative Braking Systems

SCB and other regenerative braking

TRW’s advanced brake system technol-

systems can be integrated with other

To learn more about EPS, SCB and

ogy, called Slip Control Boost (SCB), is

vehicle systems to enhance safety. One

other TRW technologies, please visit

an integral part of regenerative braking

example is the integration of SCB with

www.trw.com.

28


Environmental Remediation Environmental Remediation is the

the environmental impact and restore

two of the many innovative remediation

second of the three key areas within

these sites, TRW’s remediation program

technologies used (see Figure 21).

E2. Some of TRW’s manufacturing

employs a wide range of technologies

sites are more than 100 years old. At

to reduce the potential environmental

these sites and drive down the associ-

the end of 2008, the company’s world-

impact of past activities. The injection

ated financial liabilities. Last year, TRW

wide portfolio of active remediation

of potassium permanganate to oxidize

completed work or “closed” nine sites,

projects (including U.S. Superfund

chlorinated solvents and land farming

while adding two new sites, resulting in

sites) consisted of 72 sites. To minimize

of petroleum-contaminated soils are just

a net decrease of seven sites. (New sites

TRW’s goal is to reach “closure” of

Figure 21. This soon to be completed, in-situ chemical oxidation (ISCO) system will be used to remediate chlorinated solvents in the groundwater.

29


Number of Remediation Sites

150

committed to protecting human health

100

92

88

and the environment. As it performs

82

77

70

63

50 12

1

0 -8

to make significant reductions in the

2 -11

-5

-7

lifecycle costs.1 TRW continues to apply -9

the Six Sigma process to the remediation

-50 2004

2005

2006

2007

remediation work, TRW also seeks ways

2008

March 2009

Year

function. Using innovative technologies and leveraging experienced service

New Remediation Sites

providers, the environmental and legal

Closed Remediation Sites

professionals work together to reduce

Existing Remediation Sites

both the costs and the risks associated with the company’s remediation efforts.

Figure 22. From 2004 to the present, TRW has been able to close out remediation projects at a steady rate.

are typically the result of recent discovery of impacts from historical opera-

Summary – Remediation

tions.) But the number of sites is not

As sites are closed and the human

the whole story. Figure 22 demonstrates

health and the environment risk

that from 2004 to the end of 2008, the

decreases, the dollar amount set aside

number of remediation projects had

in TRW’s financial reserves generally

been reduced by more than 35 percent.

decreases. At the end of 2008, the

reserves set aside to deal with remedia-

While TRW works to complete re-

mediation projects with all governments

tion were USD $45 million, a decrease

in a timely manner, the company is

of USD $8 million.

Footnote 1. To manage and report environmental remediation liabilities, TRW follows the guidelines of American Institute of Certified Public Accountants Statement of Position (SOP) 96-1. In addition, to ensure compliance with the U.S. Sarbanes-Oxley Act and to meet reporting requirements of the U.S. Securities and Exchange Commission, TRW internal and external auditors provide significant financial oversight of the Remediation Program.

30


HS&E Cost Determination and Reduction (CDR) and Energy Reduction: Overview The third of the three key areas within E2 has two key components, the CDR program and the new Energy and Water Reduction program. CDR – which has been implemented globally – has two main benefits: • It provides HS&E professionals and others a systematic approach to identify, evaluate and reduce or eliminate HS&E-related risks and costs associated with various supply, production and disposal processes. • CDR also enables employees to continually identify and implement improvement opportunities. During the past several years, TRW’s HS&E organization has helped conduct more than 200 CDR Workshops, leading to projects that have resulted in

shops that last two to three days. A

The CDR program, with its focus

more than USD $20 million in validat-

trained practitioner leads a cross-

on continuous improvement and risk

ed savings. These cost savings can also be

functional team of six to eight team

reduction, is an integral part of the

translated into HS&E performance im-

members, including engineers, techni-

company’s HS&E Management Systems.

provements in terms of reduced waste,

cians, managers and specialists. They use

The CDR program integrates a number

air emissions, natural resources (water

Six Sigma DMAIC (Define, Measure,

of risk reduction, Six Sigma, and con-

and energy), as well as reduced risk to

Analyze, Improve, Control) and Activity

tinuous improvement tools that allow

employees and the environment.

Based Costing (ABC) methodologies to

HS&E professionals, engineers, Lean

CDR is administered through the

effectively analyze the impact and costs

Production Officers, and others to sys-

completion of highly structured work-

of vital HS&E processes.

tematically evaluate and reduce HS&E-

31


HS&E SUPPLY PROCESSES

PRODUCTION PROCESSES

HS&E DISPOSAL PROCESSES

Overall HS&E Management & HS&E Training H&S Incidents Management

H&S Related Absence Management

Water Management

Wastewater Management

Non-hazardous Materials Management

Waste Management

Hazardous Materials Management

Air Emissions Management

Energy Management

Noise Management

Non-Product Output

Resource Input

H&S Hazards Management

Packaged Product

Figure 23. The HS&E Cost Determination and Reduction (CDR) Process Model works to reduce the inputs required for the operation (left side), while minimizing the nonproduct outputs at its manufacturing facilities (right side).

related risks and costs associated with

focuses on identifying, and to the extent

the supply, production, and disposal

possible, reducing, or eliminating risks

processes used in manufacturing.

associated with HS&E processes and

In 2008, the TRW CDR Program

operations.

was recognized for its accomplishments, World Conventions & Business Forums’

E2 – Examples of Sustainability – CDR Case Studies

(WCBF) prestigious Global Six Sigma

Timisoara, Romania: Waste Minimi-

& Business Improvement Award. This

zation/Environmental Protection

award nomination was based on the

The Timisoara facility, which manufac-

wide range and depth of the continu-

tures steering wheels, implemented a

ous improvement projects generated by

project to recycle metallic packaging

the CDR program. Figure 23 illustrates

materials. Prior to this project, the

why the CDR process is successful, as it

contaminated packaging materials were

as it was one of three finalists for the

32


disposed of as waste. Now, after decon-

bricating properties and is used at lower

savings of USD $34,000. The benefit

tamination, the metal is recycled. The

concentrations. The facility reduced

to the environment includes reduced

net effect is several fold – it increases

consumption of cutting coolant by

burden on the landfill, less material and

recycling, lowers the quantity of

16,000 gallons (60,500 liters) per year,

packaging waste, and a more efficient

material to be disposed and reduces

and reduced the cost by approximately

manufacturing process.

disposal costs by USD $25,000 per year.

USD $37,000 per year. The same project was also implement-

Peterlee, UK: Energy Conservation/

Ponte de Lima, Portugal: Energy

ed at the Fowlerville, Michigan plant, a

Natural Resource Management

Conservation

sister facility, for an additional savings of

The Peterlee facility, which makes

At Ponte de Lima, an airbag facility, a

USD $26,000 per year. The combined

airbag inflators and modules, imple-

project was implemented to reduce the

annual savings for the two facilities was

mented an improved cooling system

energy consumption of metal detectors

USD $63,000 with an estimated savings

that reduced energy consumption by

used in production. In the past, the

of 25,000 gallons (94,500 liters) of cool-

95 percent. Previously, the site utilized

facility’s 36 metal detectors were left on

ant. The savings to the environment

a cooling tower that had high energy

24 hours per day, regardless of whether

include reduced chemical production,

consumption and required feedwater

airbags were being tested or not. Con-

reduced wastewater treatment, and lower

to operate. The cooling tower was

trollers were installed to turn on the

part scrap rate (due to the superior lubri-

replaced with an adiabatic blast cooler

metal detectors only when a bag is ready

cating properties).

that uses significantly less energy and no

to be tested. The result has reduced the

feedwater. The change yielded annual

“on” time of the metal detectors by 72

Reynosa, Mexico: Waste Minimiza-

savings of more than USD $80,000 and

percent, and has reduced energy cost at

tion/Environmental Protection

significantly reduced water consump-

the facility by USD $17,000 per year. In

The Reynosa facility, which manufac-

tion at the facility. The impact in water

addition, the energy saved has reduced

tures automotive switches and HVAC

savings is obvious, but less obvious is

the generation of carbon dioxide and

products, implemented a project that

the decrease in the quantity of water

other pollutants formed in the genera-

reduced the amount of grease waste gen-

treatment chemicals and the decrease

tion of electricity.

erated from its window lift and mirror

in the packaging required to hold these

processes. The facility used to purchase

chemicals.

Fenton, Michigan, USA: Material

single-use tubes of grease for these pro-

Usage/Environmental Protection

cesses, and would dispose of the empty

Value-Added – 2008 CDR Program

The Fenton facility, a manufacturer of

tubes. This project identified refillable

Results

anti-lock braking systems, changed from

grease tubes and bulk grease. The result

Through minimizing wastes, eliminating

multiple cutting coolants to a single

is more efficient use of the grease, re-

hazards, and reducing energy consump-

product. This coolant has superior lu-

duced waste disposal, and an annual cost

tion, the CDR Program has helped

33


more than 1,200 projects have been

cost savings and in the corresponding

TRW, its employees and customers, and

identified in nearly 200 workshops

reduction in wastes, etc., which can

the communities where TRW operates.

completed through 2008 worldwide.

be seen in the Environmental Release/

Not surprisingly, CDR has also contrib-

Figure 24 shows the distribution of

Natural Resource section of this report.

uted to reducing operational costs.

projects identified and savings achieved

TRW uses CDR workshops to engage

by year since the CDR program was

employees in identifying practices that

rolled out in 2003.

detract from a sustainable business.

The ability to drive continuous

Since the CDR program began in 2003,

improvements is measured both in

Figure 24. Since 2003, the validated savings from Cost Determination and Reduction (CDR) projects have increased even as the number of projects actually declined.

350

7,000

300 $4,826

250

$5,181

$5,422

5,000

$3,752

200

4,000 3,000

150 $1,514

100 50

6,000

2,000 1,000

$203

0

0 2003

2004

2005

2006

2007

Year Total CDR Projects Identified

Validated CDR Savings

34

2008

Validated Cost Determination and Reduction (CDR) Savings (USD $000’s)

Total Cost Determination and Reduction (CDR) Projects Identified

improve processes and lower risks for


Energy and Water Reduction Program Global Trends

As energy prices rise due to increased

Despite the recent drop in energy prices

demand and constrained supply, the

suppliers are unable to meet cost

as a result of the economic downturn, it

business impacts are obvious:

obligations or go bankrupt.

has been predicted that the demand for

• Reduced profits due to higher

energy resources will rise dramatically over the next 25 years: • Global demand for all energy sources is forecast to grow by 57 percent over the next 25 years.

• Disruptions in supply chains as

operating costs. • Decline of sales or higher costs of energy-using products.

Figure 25. Increases in expenditures for electricity (24 percent), natural gas and oil (23 percent) from 2006-2008 provide an opportunity for energy reduction projects.

• Loss of competitiveness in energyintensive businesses.

• U.S. demand for all types of energy

180

is expected to increase by 31 percent 150

within 25 years.

150

• By 2030, 56 percent of the world’s

130

• Electricity demand in the U.S. will grow by at least 40 percent by 2032. • New power generation equal to nearly 300 (1,000MW) power plants will be needed to meet electricity demand by 2030.

Cost (USD $000’s)

energy use will be in Asia. 120

114

90

60

• Currently, 50 percent of U.S. electrical generation relies on coal, a fossil fuel,

30

23

30

23

while 85 percent of U.S. greenhouse 5

gas emissions result from energyconsuming activities supported by

6

6

0 2006

fossil fuels.

2007

2008

Year Electricity

Natural Gas & Oil

Water

(Sources: Annual Energy Outlook [DOE/EIA-0383, 2007], International Energy Outlook 2007 [DOE/EIA-0484, 2007], Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2005 [April, 2007] [EPA 430-R-07-002])

35


Recent history also demonstrates that

future increases in energy prices that will

cushion the impact of future energy

catastrophic weather events, terrorism,

invariably occur.

market volatility.

and shifting economic centers are not

Since 2003, the Global HS&E Team

just events of the imagination but reali-

has been facilitating energy reduction via

ties of this life.

the CDR Program (as shown in the pre-

Energy Reduction – The Path Forward

vious section). During this time, energy

In 2008, a new cross-functional Energy

The Impact to TRW

reduction projects have been responsible

Team (ET) was formed. It is led by the

TRW spends more than USD $186

for much of the CDR savings achieved

Global HS&E Team and includes mem-

million per year for energy and water

(see Figure 26). Now the Global HS&E

bers from purchasing, finance, business

(see Figure 25), with more than 80

Team has been challenged with the

excellence /continuous improvement

percent spent on electricity. Although

task of expanding the use of the CDR

and others as needed. The ET relies on

some energy prices decreased at the end

process to conserve even more energy, to

the proven Six Sigma DMAIC (Define,

of 2008, TRW needs to be prepared for

further reduce energy costs, and to

Measure, Analyze, Improve, Control) process to help develop new energy-

Validated Cost Determination and Reduction (CDR) Energy Savings (USD $ 000’s)

$700

$661

saving methodologies and projects. Starting in 2009, TRW’s Energy

$600

Program team will:

$486

$500 $400

$362

• Catalog global energy expenditures and define goals for improving

$332

energy management.

$300

• Systematically identify and imple$211

ment energy efficiency, conservation,

$200

and cost reduction opportunities. $100

• Research and plan for future energy market volatility.

$0 2004

2005

2006 Year

2007

2008

• Develop and implement greenhouse gas reduction targets and implement

Figure 26. From 2004-2008, the cost savings from CDR energy projects increased significantly.

36

methodologies.


These objectives will help TRW be

additional energy cost savings by the end

more cost-competitive in the long-term.

of 2009. The key elements of TRW’s

In the short-term, these efforts are ex-

Sustainable Energy Program are further

pected to yield at least USD $1million in

outlined in Figure 27.

Level

Energy Supply Management

Energy Data Management

Energy Use in Facilities

Figure 27. Tracking and managing energy costs is the goal of the TRW Sustainable Energy Plan.

Equipment Efficiency

Organizational Integration

Processes

• Error Resolution • Rate Optimization • Account Management

• Accessibility • Monthly Bills • Key Performance Indicators and Benchmarking • Reporting

• Facility Walk-throughs • Benchmarking and Ranking Facilities

• Corrective Maintenance Program • Systems Control

• Awareness and Participation • Energy Manager’s Role

Programs

• Supplier Choice • Supplier Reliability and Quality

• Load Profiling • Interval Data

• Diagnostic Audits • Operating Procedures

• Preventative Maintenance Program • Lighting Upgrades • Alternative Energy

• Energy Planning • Performance and Training • Resource Management • Budget Preparation

Projects

• Demand-Supply Optimization • Risk Management

• Sub-metered Data

• Investment Grade/ Comprehensive Audits • Commissioning • On-going Monitoring

• System Upgrades • Standards • New Technology • System Measurement and Verification

• Project Approval • Results Auditing • Financial Impact and Incentives • Accountability and Review

37


Greenhouse Gas (GHG) Emissions Two metrics systems support the

largest contributor to TRW’s global

and bunker fuel together represent a

components of E2. The first calculates

GHG emissions, followed by liquid and

relatively insignificant fraction of total

greenhouse gas (GHG) production,

natural gas (including bunker and diesel

emissions for each year.

while the second records the usage of

fuel), and purchased heat.

GHG Emissions Methodology

energy and water and the creation of industrial wastewater and wastes. To

Distribution of GHG Emissions

The methodologies for quantifying

quantify company-wide GHG emissions

As seen in Figure 30, emissions from

GHG emissions were based on best

for 2006, 2007 and 2008, TRW utilized

electricity use and bunker fuel (also

practice reporting guidelines, including

fuel usage and electricity consumption

known as No. 6 fuel oil) were relatively

the World Resources Institute and the

for all manufacturing, engineering, and

constant between the three years, while

World Business Council for Sustainable

distribution facilities worldwide. The

natural gas, diesel fuel and purchased

Development (WRI/WBCSD) Green-

objective of this work was to provide

heat had significant variation. As part of

house Gas Protocol Initiative’s guidance

a preliminary worldwide inventory of

the GHG emissions analysis, the majority

documents and calculation tools, The

GHG emissions.

of emissions are attributed to electricity

Climate Registry’s General Reporting

consumption, at 74 percent for 2008

Protocol, and American Petroleum Insti-

GHG Emission Sources

and ranging between 69 and 77 percent

tute’s 2004 Compendium of Greenhouse

The contribution to total GHG emis-

of total emissions for all three reporting

Gas Emissions Estimation Methodologies

sions by source type for each of the three

years. Natural gas contributed 20 percent

for the Oil and Gas Industry.

reporting years is shown in Figure 28

of total emissions for 2008, and between

Worldwide GHG emissions were

(2006-2008 Emissions by Source Type).

16 and 28 percent for all three years, as

estimated from aggregated fuel usage and

As shown in Figure 29, emissions from

the second largest contributor. Purchased

electricity consumption on a country-

electricity consistently are the single

heat (steam and hot water), diesel fuel,

specific basis. Total GHG emissions

Reporting Year

Direct Emissions Sources Subtotal (tons CO2e)

Indirect Energy Import Emissions Subtotal (tons CO2e)

Total Emissions (tons CO2e)

Sales (USD $1,000)

Normalized CO2e Emissions (tons CO2e/ USD $1,000)

2006

224,004

564,134

788,137

$13,144

59.96

2007

212,997

643,864

856,860

$14,700

58.29

2008

123,573

649,265

772,837

$15,000

51.52

Figure 28. The trend from 2006-2008 is a 14 percent decline in the normalized Greenhouse Gas (GHG) emissions, expressed as tons of CO2 equivalents.

38


estimates were calculated using methods

natural gas in all its forms will be

and emission factors from the WRI/

speciated (separated into its component

WBCSD GHG Protocol calculation

parts). Due to the wide range of

tool. Emissions of CO2, CH4, and N2O

products manufactured by TRW,

were estimated, as well as total carbon

production data was not utilized in

dioxide equivalents (CO2e).

normalizing data. Therefore trends in

74% Electricity, 593,573 tons CO2e 4% Diesel Fuel, 1,054 tons CO2e

emissions are not known (i.e., therefore

Next Steps in Measuring GHG Emissions

it is not possible to distinguish between

The GHG emission data presented in

improvements). Reductions in GHG

this report for 2006-2008 is the first

emissions will come from process changes

estimate performed by TRW. Both the

as a result of the continuation of the

energy data and the methodologies used

CDR program and the implementation

to calculate the emissions estimates will

of the TRW Sustainable Energy Plan.

2% Purchased Heat, 55,674 tons CO2e

production declines and efficiency

continue to be refined. For example,

20% Liquid and Natural Gas, 121,804 tons CO2e Figure 29. Based on 2008 data, purchased electricity comprises the greatest source of GHG emission for TRW and therefore is a focus of the company’s energy efficiency efforts.

16.00 13.35 13.22 13.29

14.00 12.30 12.06

Log (metric tons CO2e)

12.00

11.71 10.93

10.55

10.00

9.57 9.55 8.31

8.00

6.96

7.01

7.32 6.57

6.00 4.00 2.00 0.00 Liquid and Natural Gas

Diesel Fuel

Bunker Fuel

Electricity

Purchased Heat

Source 2006

2007

2008

Figure 30. While the fuel sources vary, they are all used to produce electricity for TRW facilities and all produce greenhouse gases.

39


Environmental Release/Natural Resource (ERNR) Metric: Introduction The second of the two E2 metric

• Industrial Waste Water Generation:

oils/greases, wood, and “other” waste.

systems is the system for recording usage

Wastewater that is generated by the

For each of these waste streams, the

of energy and water and the creation of

manufacturing process and directly

quantities are divided into three

industrial wastewater and wastes. Since

discharged to a sewer or an on-site/

sub-categories according to the

2005, TRW has measured and tracked

off-site treatment system.

ultimate end of the waste: • Disposal (land disposal, solidifica-

the four categories of ERNR data: • Waste Generation: Twelve different n

tion or other method of disposal

Energy: Electricity, natural gas, heating

waste streams are measured: cardboard/

where the waste is not intended to

oil and purchased heat (i.e., steam and

paper, computer/electronic waste,

be used again)

hot water).

electroplating waste, metals, nylon/

• Water Usage: Water usage including drinking, sanitary and process use.

• Incineration (a thermal process

plastics, oil-contaminated waste,

where the sole purpose is to destroy

process wastewater taken off-site for

the waste [heat recovery is not a

treatment, sludge, non-segregated

goal])

(municipal) waste, flammable liquids/

• Recovery (recycling, reuse, return

Figure 31. From 2005-2008, the normalized water usage in TRW facilities decreased by more than 20 percent.

200,835

2,500

192,931

181,211

200,000

2,000

143,667

150,000

1,500 100,000

2,836

2,155

500

2,381

1,000,

2005

2006

2007

2008

0 Year Water Use

Normalized Water Use

40

50,000 0

Normalized Water Use (liter per USD $1,000,000)

250,000

2,539

Water Use (000’s m3)

3,000


80,000 65,525

900

70,000 59,290

56,250

850

60,000 50,264 50,000

800

40,000

750

30,000 20,000

2005

2006

753

859

650

739

700 828

Industrial Waste Water Generation (000’s m3)

950

2007

10,000

Normalized Industrial Waste Water Generation (liter per USD $1,000,000 m)

Figure 32. From 2005-2008, the normalized industrial wastewater generation in TRW facilities decreased by more than 9 percent.

0

2008

Year Industrial Waste Water Generation

Normalized Industrial Waste Water Generation

to the supplier, burned for heat

waste-water generation* overall

to 295,092 metric tons). However,

recovery, etc.)

decreased 9.5 percent and 9.0 percent

when normalized, the waste generation

respectively (from 2,539,163 m3 to

(waste generation per total annual sales)

Waste and Resource Reduction – Evidence of Sustainability

2,155,007 m3 and from 828,427

increased 16.4 percent. This increase

m3 to 753,955 m3, respectively).

in the normalized waste generation is

The following sections present a

In addition, when using “normalized”

largely attributable to a range of factors:

four-year summary, 2005-2008, of

figures (water usage and wastewater

a new foundry coming on-line in 2008

ERNR data. The data includes a

generation per total annual sales), both

with more than 10,000 tons of foundry

normalization based on sales, which

parameters decreased, by 20.7 percent

sand generated, the decommissioning

best correlates with actual production

and 9.6 percent, respectively.

of a large facility with large quantities

changes. By using sales, TRW can track

of electronic waste, improved ERNR

the relationship of material usage and

Waste Generation

recordkeeping and reporting systems,

waste generation directly to its finances.

From 2005-2008, as production

and the creation of a new computer/

increased, total waste generation

electronic waste category.

(all 12 categories) increased 38.1

Figures 33 and 34 provide the mean

percent (from 213,628 metric tons

waste distribution over the four-year

Water Usage and Industrial Wastewater Generation As shown in Figures 31 and 32, from

*Wastewater generation accounts for industrial wastewater discharged via pipe. Wastewater taken off-site

2005-2008, both water usage and

via truck or lorry is accounted for in the waste category.

41


0.9% Electroplating Waste 1.0% Computer or Electronic Waste 5.5% Cardboard/Paper

49.4% Metals

10.6.% Other Waste Streams 3.4% Wood 3.3% Nylon/Plastics

1.8% Flammable Liquids/Oils Used Oils/Greases

1.7% Oil-Contaminated Waste

8.1% Trash/Municipal Waste Garbage/Non-Segregated Waste

11.7% Process Wastewater (taken off site by lorry or truck)

2.7% Sludges

Figure 33. Metals were the largest contributor to TRW’s mean waste stream distribution during the period 2005-2008.

period and the change in that distribu-

“hazardous waste” demonstrate the

tion from 2005-2008, respectively.

following trends:

A few highlights over the four-year period include (values are not normalized), as demonstrated in Figures 33 and 34, include: n

n

As expected, metals are the largest

n

Nearly all cardboard/paper (14,626 metric tons or 98.6 percent in 2008)

• Oil contaminated waste decreased

is recycled, nearly all computer/elec-

63.6 percent

tronic waste is recycled (11,257 metric

• Process wastewater taken off-site

tons or 99.8 percent in 2008) and

for treatment decreased 21.4

nearly all metal (145,423 metric tons

percent

or 99.8 percent in 2008) is recycled,

contributor to total waste (49.4

• Sludge decreased 20.9 percent

nearly all wood (8,887 metric tons or

percent). The metals category is

• Electroplating waste and flammable

95.5 percent in 2008) and nearly all

followed by process wastewater taken

liquids both increased 18.8 percent

nylon/plastic (7,973 metric tons or

off-site for treatment (11.7 percent),

and 4.7 percent, respectively

94.1 percent in 2008) is recycled.

other waste (10.6 percent) and trash

• Overall, the relative contribution

n

Recovery/recycling increased in every

(8.1 percent). The largest component

of these wastes generally regulated

waste category, except for electroplat-

of the other waste category is foundry

as hazardous waste to total waste

ing waste (-8.4 percent) and flam-

sand from the company’s two iron

generated decreased 4.6 percent

mable liquids (-1.4 percent)

foundries.

(from 19.8 percent in 2005 to

Relative contribution of the waste

15.2 percent in 2008)

streams generally considered to be

n

Recovery/recycling of the materials generally considered to be hazardous waste increased 10 percent from 2005

42


requirements, and other TRW

from country to country, this category

Value-Added – Waste Reduction and Decrease in the Use of Natural Resources

includes electroplating waste, oil con-

Efforts to continuously reduce water

sustainability, to protect the environ-

taminated waste, flammable liquids,

usage and decrease wastewater and waste

ment, and help competitiveness in the

oils, and used oils.

generation are undertaken as a result of

marketplace.

to 2008 (from 58.1 percent to 68.1 percent). Although regulations vary

continuous improvement opportunities. All of these efforts combine to improve

HS&E CDR Workshops, regulatory

Percentage of Waste in the Total Waste

Percentage Change in Generation Rate

120 100 80 60 40 20 0 -20

0

2

4

6

8

10

12

14

-40 -60 -80 13.1% Decrease in Cardboard/Paper 100.0% Increase in Computer or Electronic Waste 18.8% Increase in Electroplating Waste 3.5% Increase in Metals 3.4% Decrease in Nylon/Plastics 63.6% Decrease in Oil-Contaminated Waste 21.4% Decrease in Process Wastewater (taken off site by lorry or truck) 20.9% Decrease in Sludges 5.5% Decrease in Trash/Municipal Waste/Garbage/Non-Segregated Waste 4.7% Increase in Flammable Liquids/Oils/Used Oils/Greases 4.8% Decrease in Wood 5.4% Increase in Other Waste Streams

Figure 34. The change in the waste generation composition from 2005-2008 demonstrates the progress TRW facilities have made in waste minimization, waste reduction, and recycling (note computer/electronic waste recording started in 2008).

43


Select HS&E Data Tables Health and Safety Data, 2000 – 2008 Year

Total Recordable Incident Rate (TRIR)

Lost Workday Incident Rate (LWIR)

Severity Rate

HS&E Management Systems Scores 2002 – 2008 Year

HS&E Management Systems Implementation Score

2000

3.47

2.5

50.1

2001

3.04

2.35

62.1

2002

75%

2002

2.57

1.88

45.5

2003

77%

2003

2.12

1.57

38.6

2004

87%

2004

1.67

1.28

33

2005

87%

2005

1.64

1.23

36.1

2006

89%

2006

1.72

1.34

41

2007

90%

2007

1.53

1.21

34.3

2008

91%

2008

1.26

1.06

28.6

44


Select HS&E Data Tables Greenhouse Gas Emissions, 2006 – 2008 Year

Tons CO2e/year

2006

788,137

59.96

2007

788,137

59.96

2008

856,860

58.29

Normalized Tons CO2e/USD $1,000

Water Usage, 2005 – 2008 Normalized Water Usage (liters/USD $1,000)

Year

Water Usage (liters)

2005

2,539,163

200,835

2006

2,381,835

181,211

2007

2,836,091

192,931

2008

2,155,007

143,667

Industrial Wastewater Generation, 2005 – 2008 Year

Industrial Wastewater

Normalized Industrial Wastewater

Generation (liters)

Generation (liters/USD $1,000)

2005

828,427

65,525

2006

739,347

56,250

2007

870,834

59,240

2008

753,955

50,264

45


Select HS&E Data Tables 2008 Total Observations – Critical Performance Checklist Critical Performance Checklist Items

Number of Acceptable Behaviors

Number “At-Risk” Behaviors

Percentage of “At-Risk” Behaviors to Acceptable Behaviors

1.1

Eyes on Path

68,193

1,146

1.68%

1.2

Eyes on Work

68,076

832

1.22%

1.3

Stable Surface

59,400

1,655

2.79%

1.4

Lifting

65,922

2,124

3.22%

1.5

Overexertion

62,749

1,763

2.81%

1.6

Line of Fire

50,717

1,426

2.81%

1.7

Rushing/Shortcuts

62,023

1,426

2.30%

1.8

Ascending/Descending

34,930

759

2.17%

1.9

Pinch Points

55,237

1,158

2.10%

1.10

Overextending

54,207

1,686

3.11%

1.11

Path of Travel

47,089

1,895

4.02%

1.12

Awkward/Cramped

65,070

2,276

3.50%

2.1

Walking/Working Surfaces

45,847

1,578

3.44%

2.2

Barricades/Warning

35,571

1,019

2.86%

2.3

Obstructions

43,201

3,243

7.51%

2.4

Housekeeping

69,111

6,034

8.73%

2.5

Awkward/Cramped

44,435

1,966

4.42%

2.6

Lighting

62,594

2,065

3.30%

2.7

Ventilation

56,284

2,604

4.63%

3.1

Selection

61,950

652

1.05%

3.2

Use

59,852

1,023

1.71%

3.3

Condition

56,902

1,828

3.21%

3.4

Vehicle Operation

24,992

1,223

4.89%

4.1

Eye and Face

61,054

2,074

3.40%

4.2

Head

20,798

703

3.38%

4.3

Hands

53,763

1,169

2.17%

4.4

Fall Protection

20,333

537

2.64%

4.5

Body Protection/Coveralls

45,758

624

1.36%

4.6

Shoes

61,650 46

893

1.45%


1.12

Awkward/Cramped

65,070

2,276

3.50%

2.1

Walking/Working Surfaces

45,847

1,578

3.44%

2.2

Barricades/Warning

35,571

1,019

2.86%

2.3

Obstructions

43,201

3,243

7.51%

2.4

Housekeeping

69,111

6,034

8.73%

2.5

Awkward/Cramped

44,435

1,966

4.42%

2.6

Lighting

62,594

2,065

3.30%

2.7

Ventilation

56,284

2,604

4.63%

3.1

Selection

61,950

652

1.05%

3.2

Use

59,852 1,023 Checklist 1.71% 2008 Total Total Observations Critical Performance 2008 Observations –– Critical Performance Checklist (Continued)

3.3 Condition Critical Performance Items 3.4 Checklist Vehicle Operation 4.1 1.1 4.2 1.2 4.3 1.3 4.4 1.4 4.5 1.5 4.6 1.6 4.7 1.7 4.8 1.8 5.1 1.9 5.2 1.10 5.3 1.11 5.4 1.12 5.5 2.1 5.6 2.2 6.1 2.3 6.2 2.4 6.3 2.5 7.1 2.6 7.2 2.7 7.3 3.1 7.4 3.2 Total 3.3

Eye and Face Eyes on Path Head Eyes on Work Hands Stable Surface Fall Protection Lifting Body Protection/Coveralls Overexertion Shoes Line of Fire Hearing Protection Rushing/Shortcuts Respirator Protection Ascending/Descending Pre-Job Inspection/Planning Pinch Points Adequate Personnel Overextending Communication Path of Travel Complying with Lockout/Tagout Awkward/Cramped Complying with Permits Walking/Working Surfaces Written Procedures Barricades/Warning Hair Obstructions Clothes Housekeeping Jewelry Awkward/Cramped Floor Lighting Equipment Ventilation Storage of Materials Selection Disposal of Materials Use

3.4

56,902 Number of Acceptable Behaviors 24,992

1,828 Number “At-Risk” Behaviors 1,223

3.21% Percentage of “At-Risk” Behaviors to Acceptable Behaviors 4.89%

61,054 68,193 20,798 68,076 53,763 59,400 20,333 65,922 45,758 62,749 61,650 50,717 36,929 62,023 19,994 34,930 43,201 55,237 43,175 54,207 45,850 47,089 36,299 65,070 32,399 45,847 59,614 35,571 57,331 43,201 58,511 69,111 55,071 44,435 58,936 62,594 49,304 56,284 60,300 61,950 49,525 59,852 2,224,147 56,902

2,074 1,146 703 832 1,169 1,655 537 2,124 624 1,763 893 1,426 883 1,426 698 759 423 1,158 716 1,686 409 1,895 475 2,276 282 1,578 654 1,019 477 3,243 618 6,034 1,913 1,966 2,724 2,065 844 2,604 2,009 652 1,232 1,023 61,738 1,828

3.40% 1.68% 3.38% 1.22% 2.17% 2.79% 2.64% 3.22% 1.36% 2.81% 1.45% 2.81% 2.39% 2.30% 3.49% 2.17% 0.98% 2.10% 1.66% 3.11% 0.89% 4.02% 1.31% 3.50% 0.87% 3.44% 1.10% 2.86% 0.83% 7.51% 1.06% 8.73% 3.47% 4.42% 4.62% 3.30% 1.71% 4.63% 3.33% 1.05% 2.49% 1.71% 2.78% 3.21%

Vehicle Operation

24,992

1,223

4.89%

4.1

Eye and Face

61,054

2,074

3.40%

4.2

Head

20,798

703

3.38%

4.3

Hands

53,763

1,169

2.17%

4.4

Fall Protection

20,333

537

2.64%

4.5

Body Protection/Coveralls

45,758

624

1.36%

4.6

Shoes

61,650 47

893

1.45%

Condition


Select HS&E Data Tables Waste Recycling, 2005 – 2008 2005

2006

2007

2008

Change 2005 to 2008

Cardboard/Paper

77.80%

95.70%

99.80%

98.60%

20.80%

Computer/ Electronic Waste

N/A

N/A

N/A

99.80%

66.50%

Electroplating Waste

76.10%

68.70%

72.20%

67.70%

-8.40%

Metals

98.30%

98.60%

99.80%

99.80%

1.40%

Nylon/Plastics

73.30%

87.20%

90.30%

94.10%

20.80%

Oil-Contaminated Waste

33.10%

70.20%

36.30%

41.90%

8.80%

Process Wastewater (taken off site by lorry or truck)

61.90%

57.20%

37.90%

73.80%

11.90%

Sludges

54.80%

47.30%

58.80%

57.80%

3.00%

Trash/Municipal Waste/ Garbage/Non-Segregated Waste

8.40%

11.00%

12.50%

25.60%

17.30%

Flammable Liquids/Oils/ Used Oils/Greases

65.10%

49.80%

57.10%

63.80%

-1.40%

Wood

91.60%

88.20%

97.00%

95.50%

3.80%

Other Waste Streams

16.30%

20.30%

19.50%

18.10%

1.80%

48


49


Value-Added: Global Health, Safety, Environment & Security Program TRW has continued to develop a

pany produces a range of lead-free

company-wide safety culture in 2008.

electronics and aggressively pursues

This effort would not have been possible

the development of components to

without the entire management team

improve fuel efficiency for conven-

of TRW, the global Health, Safety,

tional and hybrid vehicles.

Environment and Security Program, and the many thousands of employees

n

Continuous Improvement. HS&E

throughout the company who have

and Lean Manufacturing workshops

assumed leadership roles in HS&E

have educated employees whose

programs.

observations and recommendations

The leadership, enthusiasm, dedica-

have led to savings of more than

tion, and suggestions for continuous

USD $20 million since 2002, with

improvement have made a positive

USD $5.4 million saved in 2008

difference in TRW facilities, and as

alone. Employees trained in these

shown below have contributed to the

workshops have helped the company

“triple” bottom line (economy, environ-

achieve operating conditions that

ment, social aspects) in many ways:

minimize HS&E risks and costs.

n

n

Health and Safety. Work-related

n

Energy Reduction. The new

health and safety impacts to employees

Energy Team defines goals for

decreased, as evidenced in the TRIR,

improving energy management

from 3.47 in 2000 to 1.26 per 100

and systematically identifies and

employees in 2008. This reduction

implements energy efficiency, con-

is being achieved through the imple-

servation, and cost reduction oppor-

mentation of Safety Excellence and the

tunities. In addition, the team helps

integration within Back-to-Basics.

the company plan for future energy

n

Greenhouse Gases. The GHG

market volatility and develops and

emission data presented in this

Product Stewardship. As a result of

implements greenhouse gas (GHG)

report for 2006 – 2008 is the first

Product Stewardship efforts, the com-

reduction targets.

estimate performed by TRW. Both the

50


n

Waste Reduction. The focus on reducing HS&E impacts across the entire value chain is reflected in all HS&E Programs, especially the risk reduction efforts. This progress is best evidenced by the fact that recovery/ recycling increased in 10 of 12 waste categories.

n

Security. With the economic downturn, new concerns have immerged globally in regard to a range of security risks. TRW continues to ensure the security of its employee and facilities by robust implementation of its HS&E MS.

First Safety Excellence, then Environmental Excellence and next a Health Program — the TRW roadmap for HS&E efforts is clear. The company has many successful programs in place to protect employees and is working to improve its product stewardship and reduce its energy consumption. Despite economic uncertainty, TRW is committed to these areas and expects to see additional improvements in both in 2009. While economic challenges come energy data and the methodologies used

will come from process changes

and go, TRW realizes that the need for

to calculate the emissions estimates

as a result of the CDR and Energy

health, safety and environmental

will continue to be refined. Reductions

programs.

responsibility is ongoing.

in GHG emissions

51


2008 Interactive Report

www.trwauto.com This report was prepared by the TRW Automotive Global Health, Safety and Environment Team for TRW Automotive employees and interested parties. The electronic version is available to TRW Automotive employees on the TRW intranet page, http://corpnet.trw.com/hse/. Š 2009 TRW Automotive Inc. TRW is the name and mark of TRW Automotive U.S. LLC 4/09


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