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Risk In the Value Stream at United Airlines

Presented by:

Mike QuielloVP – Corporate Safety, Security, Quality and Environment

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Agenda

• Overview• Risks• Systems/Tools• Performance • Summary

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United Airlines – A Brief History

• 3,300 flights/day• 844,000 Passengers/week• 46,000 Employees

• 359 Aircraft• 230 Locations• 26 Alliance Members

1930’s Today Tomorrow

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United TodayAircraft Fleet Seats Range

B757

B767

B777

B747

A319

A320

55

97

96

35

52

24

120

138-144

110-182

183-244

253-348

374

3,700 nm

3,000 nm

3,900 nm

6,385 nm

7,670 nm

7,260 nm

B787

A350

25*

25*

TBD

TBD

7,650 nm – 8,200 nm

8,100 nm – 9,500 nm

359 Aircraft*50 Aircraft on Order. Deliveries start 2014.

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Value Stream

• Unplanned Events, Damage with Unknown Causes

• Error Made in Processing– Runway Incursion– Altitude Deviation

• Hardware Failure• Weather Impacts• Regulatory Impacts• Reputation Risk

– Airline of Choice

Risks

Note: 50% Vendor Serviced

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What is the Data Telling Us?

Emerging Countries Will Drive the World EconomyEmerging Countries Will Drive the World Economy

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What Is the Data Telling Us?

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Significance of Human Factors

$5.8 Billion/yr in injury costs

Aviation ground and flight

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Vendor Risk

Risks• Damage (40% of Damage)• Incomplete Work• Personal Warranty

Control Methods• Line Operation Safety Assessment

(LOSA)• Qualification Assessments• IATA Safety Audit for Ground

Operations (ISAGO)• Arrival/Departure walk-around• FAA Review/Oversight

CateringCatering

PotableWater

PotableWater

Weather Services

Weather Services

FuelContractors

FuelContractors

LavServicesLav

ServicesCleaning

ContractorsCleaning

Contractors

UAXUAX

Heavy MaintenanceHeavy

Maintenance

Line Maintenance

Line Maintenance

AircraftAircraft

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Focus on 5

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Recognition Safety Knowledge Communication Quarterly Safety Work Shops

MoveSmart/ BackSafe ADD UP Cost of Poor Safety LOSA/SCA*

Integrated SMS VPP – Triple Crown Center of Excellence Peer to Peer

Safety LeadershipTeams

Reliability Advocate Roles Simplified BBS

Cul

ture

Tool

sSy

stem

sPe

ople •Safe

Environment

•Going the Extra Distance

•Proactive in Safety

$

Time

•Injury•Damage•WC Costs•Lost Revenue

AFA IBT

IAM UAL

Maintenance

Airport Operations

On Board

Flight Ops

•People

•Behaviors

•Location

•Intervention

Foundational Concepts

*LOSA – Line Operation Safety Assessment

SCA – Safety Compliance Assessment

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United’s Safety Management System

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Poor Cost of Safety

Crew Costs(Timed Out)

Gate Space

Part Inventory

CustomerSatisfaction

Rebooking Costs

Delayed Maintenance

on Other Aircraft

Time OutOf Service

Maintenance Or repair

Delay orCancellation

Damage

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Crew Resource Management (CRM) and Threat & Error Management (TEM) Oversimplified

Crew Resource Management

How teams communicate with:

•Each Other

•External agencies (ATC, Dispatch, etc.)

•Management Resources

Threat and Error Management

What teams communicate about:

•Operational threats

•Human error

Interdependent

Integrated System Approach

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Line Operation Station Assessments (LOSA)(Integrity of Processing)

• Purpose:– Quality/Safety of servicing– Direct Feedback/Improvement

• Team:– Pilots, Maintenance, Onboard, Ramp– Peer to Peer intervention

• Average B777– 55 Vehicle Movements– 25 People touching aircraft– Turn Time – 60 min– 25,000 lbs of luggage and cargo

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•Non-punitive Self Disclosure Process

•Events/ Near Misses/ Concerns

•Partnership : United, Unions & FAA

•Trends/Corrective Action

•Opportunities for improvement

Aviation Safely Awareness Programs (ASAP)Flight Crew, Flight Attendants, Ramp, Maintenance, Dispatch

First Airline to incorporate ramp employees

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People – Human Factors

• Demographics– Different demographic

of people from location to location

• Absentee work force• Constants:

3i ActionsInitiate Can’tImplement Don’t KnowImprove Won’t

94% of Events are Human Factor Based

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Community with 45,000 People

• Lessons Learned• Visible• Current• Preventive Focus• Develop new ways

with:– Social networking– Twitter– Facebook– Instant

Communications

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Advocacy

• Aligning the Leadership• Tools & Capability• Accountability• Peer to Peer• Proactive Focus• Performance

Safety Round Tables - Division

Leadership Sessions

ADD UP

Recognition

Safety Leadership Teams – Alignment

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Operations Control – Tackling the Day To Day

• Notification, Action, Response• 20% of operating environment

is variable• Managing

– Aircraft Dispatch– Diverts– Weather

– Mechanical issues– ATC– Crew Staffing– UAX– Airport issues– Security– Ill passengers– Vendors

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Performance

• 52% in Damage Reduction

2009 Injuries

• Reduced injuries by 12%• 29,000 less Lost Work Days• 24% Improvement in injury cost

• Worse to first in Arrival +14 minutes (A14) in one year

2009 Damages

Arival +14

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Summary

• Communication

• Accountability– Self

Disclosure

• Performance

• Alignment

• Teamwork

Come Fly the Friendly Come Fly the Friendly Skies!!!Skies!!!