Critical incidents in complex service contracts: Safety challenges and means of prevention · PDF fileCritical incidents in complex service contracts: ... (BAES.L) have won contracts

Criticalincidentsincomplexservicecontracts:Safetychallengesandmeansofprevention

CharaMakri,PhDStudentProfessorAndyNeely,Supervisor

InstituteforManufacturingDepartmentofEngineering

ThisstudyispartoftheresearchthatCambridgeServiceAlliancehasbeenconductinginpartnershipwithBAESystemsandissponsoredbyEPSRC

Servicesintoday’sworld…

Source:http://uk.reuters.com accessedon30/05/16

‘BabcockInternational(BAB.L)andBAESystems(BAES.L)havewoncontractsworthatotalof3.2billionpoundstomaintainBritishwarships,submarinesandnavalbasesforthenextfiveyears’

ResearchMotivation

ResearchObjective Data Analysis Results&

DiscussionContextualFramework

ConcludingRemarks

ServitizationofManufacturing

Strategic

Economic

Environmental

↓Riskofownership

Motives(VandermerweandRada,1988)

(Neely,2008)

(Mont,2002)

(Wardetal.,2005)

Newcapabilities

Largenetworks

Experimentationtogaincapabilities

Transferofrisk

Challenges(e.g.Oliva&Kallenberg,2003)

(e.g.Davies,2004 )

(e.g.Ward&Graves,2006 )(Nordinetal.,2011)

(OlivaandKallenberg,2003)

(Sullivan&Beach,2009)

(Salehetal.,2010)

Focus:operational,performance,financial

Consequences:sociallynoticeable

Increasedmortality&environmentalcosts

Risks

”..theprocessofcreatingvaluebyaddingservicestoproducts.”Bainesetal.,2009

(VandermerweandRada,1988)

ResearchMotivation



ConcludingRemarks

Maintain/Improvesafety

Incidentreporting

AccidentCausation

SafetyCulture

System&humanredundancy

Openandhonestcommunication

Continuouslearning

Flexiblestructures

Standardprocedures &min.requirements

Outstandingtechnology

AccidentCausation*HROsLiterature

OrganisationalCompetencies

ResearchMotivation



ConcludingRemarks

Maintain/Improvesafety

*e.g.Robertsetal.1994;Tranfieldetal.2003;Hopkins2007;Sullivan&Beach2009;Salehetal.2010;Lekka&Sugden2011;Sutcliffe2011;Makri&Neely2015

ResearchObjective

Howcanservitizedmanufacturersmanagesafetychallengesgiventhelargenetworksinvolvedinservice

provision?

Source:http://www.julyan.biz/networks/ accessedon31/05/16

ResearchMotivation



ConcludingRemarks

Data

23ExploratoryInterviewswithopen-endedquestions(CorbinandStrauss,1990;StarksandTrinidad,2007) – TheoreticalSampling

• Whatsortofservicecontractsareyoufamiliarwith?• Whatarethechallengingaspectsofthese?• Howwouldyoudefineaccountability?• Howdoestheshifttoamulti-organisationalfocusinfluenceyourperceptionofaccountability?

• Whatmechanismsdoyouusetomanagethrough-lifeaccountabilitywithinyourorganisation?

• …

ResearchMotivation



ConcludingRemarks

Analysis

DataCollection Coding

Amendquestions

Categories Concepts

ResearchMotivation



ConcludingRemarks

Results&Discussion

Codes Interviews References Codes Interviews References

Organisational 73% 16% Legislation 27% 4%

Confusionoveraccountabilities 64% 12% Technology 27% 2%

Lackofcontrol 55% 10% Culturaldifferences 23% 3%

Incentives 45% 6% CulturalIssues 14% 1%

Balancebetweencostandrisk 36% 7% Cultureofcontinuous

learning 14% 3%

Culture(safe- just) 36% 9% Normalisationofdeviance 14% 1%

Conflictingaccountabilities 32% 3% Communicationissues 9% 3%

Culture(personal- ethics) 32% 3% Complacency 9% 2%

Culture(other) 27% 5% Humanredundancy 5% 1%

Incidentreporting 27% 6% Standardprocedures 5% 3%

ResearchMotivation



ConcludingRemarks

Results&Discussion

‘Idon’tthinkitwilleverfullybedefinedofwhoisaccountableandresponsibleforwhat,withinaservicecontract,andthatiswhereweareputtingouremphasis

now,inmakingpeopleunderstand.’

HeadofProductSafetyDefence Manufacturer

ResearchMotivation



ConcludingRemarks

IndividualAttitudes&Values

Incentives

Commercial&Operations

Structures&Hierarchies

Procedures Legislation

Assessment&ContinuousLearning

Technology&Systems

CompetencyofPeople

ContextualFramework

ResearchMotivation



ConcludingRemarks

ConcludingRemarks

Practice• Guidancetoolforservitizedmanufacturers

Theory• Servitization• Accident Causation

ResearchMotivation



ConcludingRemarks

ConcludingRemarks

Mainfindings• Threemaincategories:Dutyholder&GovernanceAttitudesCompetences

• HROattributes:Needfurtherevidence

Limitations&FurtherResearch• ExploratoryResearch:-leadsforfurtherresearch-newpropositions

• Supplementanalysiswithpastcriticalfailures:Interviews&officialinvestigationreports

ResearchMotivation



ConcludingRemarks

DameJudith,HealthandSafetyExecutive‘Healthandsafety:thejourneybacktocommonsenseandpersonalresponsibility'

Source:https://www.youtube.com/watch?v=J4xQnulGYdg&feature=youtu.be accessedon25/05/16.

Criticalincidentsincomplexservicecontracts:Safetychallengesandmeansofprevention

CharaMakri,PhDStudent([email protected])ProfessorAndyNeely,Supervisor

“Rulesandprescriptionssimplydonotwork.Itisjudgement,knowledgeandcompetence,thatisrequiredtodecidewhatisreasonableandwhatispracticable,youcannotmanagehealth

andsafetythroughrulesandtickingboxes”

Scanmetoaccessthepaper

Scanmeforprofileinformation

Forthcoming Webinars

Date14:30hr GMT

Topic Invitedspeaker

April11th MappingEcosystems:IdentifyingServiceInnovations.***TOOL***

Prof.AndyNeely

May9th Supplyinginnovation:unlockinginnovativebehavioursinthesupplychain

Dr.Jingchen Hou

June13th FacilitatingCo-CreationinLivingLabs:TheJosephsStudy

KatherineGreve

July18th Service inthePlatformContext:areviewofthestateofart

Xia Han

September12th EnterpriseKPI’s– Aligningmetrics acrosscomplexservicenetworks

ProfAndyNeely

October3rd Critical Incidentsincomplexservicescontracts:humancausesandmeansofprevention

Chara Makri

November14th FeedbackfromtheFrontline:EngagingFront-LineEmployeesinService Contracts

DrFlorianUrmetzer

December 12th ToolsWebinar ProfAndyNeely

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Critical incidents in complex service contracts: Safety challenges and means of prevention · PDF fileCritical incidents in complex service contracts: ... (BAES.L) have won contracts