How Perdue Farms Implemented a Video Based Driver Risk Management Program

PRESENTED BY Del Lisk, Frank Cruice and Tommy Pollard

Agenda

Del Lisk, DriveCam

– Overview of the In-Cab Video Solution

Frank Cruice, Perdue Farms

– Overview of the technology selection and decision-making process

Tommy Pollard, Perdue Farms

– Implementing the solution and lessons learned

• DriveCam first introduced in-cab video technology in 1998

• Solution has continuously evolved • Currently deployed on more than 500 fleets and

protecting 400,000 drivers • Largest deployments include distribution, transit, waste,

service fleets, utilities • Perdue Farms first piloted program in late 2006

Background

Solution Overview

Event Review Criteria

Key Safety Benefits

Identify & correct poor driving before it leads to a crash

Identify your best drivers based on facts instead of luck

Protect company & drivers against false claims

Measure driving improvements through leading indicators

Challenges

• Sr. Management approval • Management buy-in • Union buy-in • Driver acceptance • Implementing fleet-wide over broad

geographies and diverse business operations

Identify Best Drivers

Measuring Safety Improvement

Making the Business Case to Senior Management

for Conducting a Vehicle Event Recorder

PILOT

Frank J. Cruice, MS, CSP, CRSP Senior Director – Corp. Safety & Security

Perdue Farms Inc

Frank.cruice@perdue.com

Overview about Perdue

Why Perdue Explored Vehicle Event Recorders # Rollovers Pre- DriveCam

Implementation Ownership

Surpassing ROI Expectations

FY09 FY10 FY11 FY12

FY13 Period

(09) December

Total Cases 339 304 352 336 227 Commercial 258 243 293 288 172 Commercial HWY 170 85 90 76 58 Non-Commercial 81 61 59 48 55 Non-Commercial HWY 49 20 25 16 17

339 304

352 336

227 258 243

293 288

172 170

85 90 76 58

81 61 59 48 55

49 20 25 16 17 0

50 100 150 200 250 300 350 400

Total Cases (vs.) Highway

Cases by Class,

Commercial

and Non -

Commercial)

Focus on Commercial Highway Crashes

17 16 11 12 10

5

FY07 FY08 FY09 FY10 FY11 FY12

Total Rollover 71 - (FY07 - FY12) Total Rollover

PAYBACK!

‘07 at $850,000 or 23 Truck Loads ’12 at $250,000 or 6 Truck Loads

Implementation ‘Gold Nuggets’

• Know what your risk exposure is • Build the business case • Seek an internal Champion/Business Partner • Source the service providers who want to be business

partners • Develop rollout plan that best meets your companies

culture • Build a measurement tool to ensure accountability • Finally, recognize success frequently and consistently

Vehicle Based Behavioral Safety

Vehicle Mounted Video Event Recorder

Tommy Pollard CDS, CDT

Startup Driver acceptance is critical. Management engagement / ownership is critical (Cross-functional Team)

Managers and Drivers will understand if you; Show why Get on the ground and meet with the drivers Show it is current with today’s technologies Show that upper management is committed to the process Show that it is part of your overall strategy Show it will build accountability from management to driver Explain how it works When you see behavior

How you react will determine how your drivers react Show that the process adds value

Pilot Results, Scored Events Trend Coaching & Intervention will influence driver improvement.

Rollout Aug 20th Active intervention with coaching Feb. 08

37 Cameras, about 50 Drivers

Coaching / Consequences, change behavior.

Management workload decreases as behaviors change. Accident case management time decreases drastically.

Building Driver Acceptance Communicate reason for intervention with drivers

Safety of drivers and motoring public Frequency of vehicle accidents rising or out of control Cost arising from vehicle accidents Cost of litigation / protection from frivolous litigation Shock loss from a vehicle accident

Demand for action by insurance carrier to develop driver improvement process (Note; Utility Company Example)

Hold driver meetings Get on the ground and talk it up:

Use formalized meetings to demonstrate reasoning Explain how the technology works Deploy the process & frequently share results

Use informal / tailgate meetings to Share video clips Talk it up with drivers

Informing Drivers as to Why Highway Preventable

Total cases = 50 Total Minimum Value = $634,908.18

Roll-over & Run Off Road

Action: Included Vehicle & Driver Attributes. •Use of Drive Cam to Manage Driver Behavior & Risky Actions (Inattention)

•Vehicle Speed Settings and Automatic Retardation •Use of Drop-deck Trailers ,(reduce the Center of Gravity)

* LDWS, Lane Departure Warning Systems * Crash Avoidance Systems, (Vorad, “Wing Man”)

- VORAD, Vehicle On Board Radar detection System

- Safety Vision, using radar, GPS & video - BSWS, Blind Side Warning Systems

* OER, Onboard Event recorders (data only), speed, quick stop, etc.

* GPS, QUALCOMM, Network Car, etc. * ELD’s Electronic logging devices * EVIR, Electronic vehicle inspection systems * Speed Limiters, Governing vehicle speed * Proximity Controls, Cruise, Radio, Air Horn, Etc.

Show it’s current with today’s technologies What types of technology do you already use?

Company goals include

Protect the company and drivers in the event of a MVA Reduce collisions Encourage safe driving habits Reduce driving related repair and maintenance costs Demonstrate our commitment to vehicle safety

Set Goals & Expectations

Set Goals & Expectations Driver Goals

Drivers should attempt to drive so the camera is not triggered.

Change the behaviors that you are coached on. Do not repeat behaviors for 60 days after coaching.

Most Common “Risky Behaviors ” include: Seatbelt violations, improper use of cell phone Distracting activity, work tasks, mapping / navigation, reaching / Looking, lighting cigarette, eating / drinking Following to close, at a distance less than 4 seconds Failing to respond, to changing traffic conditions / situations

Dispelling Rumors It is not an invasion of privacy. The goal is to improve driver safety. The company does have the right legal right to monitor driving in a company vehicle.

(Use privacy curtains for sleeper births.) Managers cannot toggle in and watch you in real time. The placement of the camera is not intrusive into the field of vision of the driver. It has been accepted by the FMCSA by granting an exception under 393.60(e). The intent is not to discipline drivers rather, improve driving behavior. (Driver Improvement not Discipline and continuous improvement are the goals.)

Use a (PIP) “Performance Improvement Strategy” Respect and enforce current policies, (seatbelt / cell phone, etc.)

Coaching versus Discipline (“Driver Improvement Process”)

Add value by training managers so they deliver coaching that refers to defensive driving. Use the PIP (Performance Improvement Process) to improve driver behavior. Remedial training, using Defensive Driving strategies

Observation rides with driver trainers

Focus behavioral management on “Repeated Behaviors”

Make sure “Management Accountability” is built into the process. Overdue for Coaching

(Timeliness of coaching really counts)

Coaching Effectiveness (There are two failures, the driver doesn’t try or the coach doesn’t effectively coach…)

Overdue for Download (Making sure that the equipment remains working)

Adding Value to your “Case Management Process”

Eliminate the guess work. Previously: We spent over 80% of our energy reaching agreement on what happened,

and less than 20% on preventing re-occurrence. Now; we see what happened very quickly, we get closure very quickly

and spend most all of our time on preventing re-occurrence.

Managed Services (DriveCam): Provide a professional analysis of the video clip. This means that

managers don’t have to and stay focused on coaching the event.

Create a level platform: By paralleling the “Truck Camera ” process with Defensive Driving

education, we eliminate the barrier between the Transportation Supervisor and driver.

Coaching, using defensive driving strategies

Coaches and drivers now use the common language of DDC.

Truck Mounted Event Recorder Continuous Improvement

Video Review There are two foundations upon which the systematic crash program rest:

•Crashes arise from specific causes •These causes can be identified and eliminated

To Fast For Conditions

11% Distracted

7%

Unsafe Maneuver 37%

Fatigue 7%

Unsafe Condition 14%

Deer Strike 24%

Known Causes / 73 Accidents

Unsafe Maneuver Fail to Yield Unsafe Lane Change Trailer Off tracking Lost Control

Unsafe Condition Tree in roadway Roadway Condition Improper Coupling

Represents two years of accidents that the camera has recorded

Behavioral Areas Not Responding Follow to Close Distracted Driving

Clip Review Fail to Respond FTR Event104437.dce FTR & VORAD Event107382.dce Follow to Close FTC Event 98116 PTI Rear End .dce Distraction Distraction Event103834.dce Distraction Event120521.dce Event119755 Distraction smoking .dce Unsafe Maneuver Event103465 FTO Stop sign .dce Uns Man Event108652.dce

Industry Performance – Improvement Benchmarks Company-by-Company Comparison on Scored Event Frequency

Performance by Risk and 6-Mo Improvement (size of bubble represents deployment size)

1.08/mo 1.71/mo

Increasing Safe Driving (Score Freq)

Least Improvement

Incr

easi

ng Im

prov

emen

t (pe

r mon

th)

Most Improvement

Lowest Risk Highest Risk

“Safest, Greatest Improvement”

0.76 Events/ Mo / Vehicle

+6.25% / Mo improvement

Industry Avg.

“Riskiest, Least Improvement”

0.44/mo

“Riskiest, Greatest Improvement”

“Safest, Least Improvement”

+15.7%

-3.3%

+34.7%

-22.3%

Our Company(Feb’12) +1.55% /Mo and 0.26e/m/v

0.00 /mo

Our Company(Dec’12) -6.35% /Mo and 0.24e/m/v

Scored Event

Frequency =

Scored Events

per Month

per Vehicle

Company Performance – Improvement Benchmarks Group-by-Group Comparison on Scored Event Frequency

Performance by Risk and 6-Mo Improvement (size of bubble represents deployment size)

0.32 /mo 0.49 /mo

Increasing Safe Driving (Score Freq)

Least Improvement

Incr

easi

ng Im

prov

emen

t (pe

r mon

th)

Most Improvement

Lowest Risk Highest Risk

“Safest, Greatest Improvement”

0.24 Events/ Mo / Vehicle

-6.35% / Mo improvement

“Riskiest, Least Improvement”

0.15 /mo

“Riskiest, Greatest Improvement”

“Safest, Least Improvement”

-2.8%

-9.8%

+4.2%

-16.8%

0.00 /mo

Scored Event

Frequency =

Scored Events

per Month

per Vehicle

Short Haul Seasoned Groups

Recently Deployed Line Haul Group

Overview of Program Performance Risk Reduction Results

67% improvement in

frequency 50%

improvement in severity

from Feb-Apr’08 to Oct-Dec’12

Historic Performance

Rollout Line Haul Division

Complete Rollout Short Haul

52% improvement in frequency 32% improvement in severity from 2008

through 2011

Focus on Commercial Highway Crashes

FY09 FY10 FY11 FY12 FY13 Period (12) March

Total Cases 339 304 352 336 283 Commercial 258 243 293 288 221 Commercial HWY 170 85 90 76 74 Non-Commercial 81 61 59 48 62 Non-Commercial HWY 49 20 25 16 17

339

304

352 336

283 258

243

293 288

221

170

85 90 76 74 81

61 59 48 62

49 20 25 16 17

0

50

100

150

200

250

300

350

400

Total Cases (vs.) Highway

Cases by Class, Commercial

Non-Commercial)

Next Steps Develop coaches book / reference guide Coaches Use “Defensive Driving” talking points

Develop Non-Smoking Policy (Short Haul Division)

Step up cell phone consequences

Develop distracted driving consequences

Consequences for failing to respond to safety alerts / etc.

Continue to issue policy violations from Corporate Safety

Begin to re-culture how we look and act regarding data, Day to Day vs. Period End / Closing With video you get a sense of what is going on now, (“Gut Feel”) Period closing, we tend to classify, group, consolidate…

Develop Non–commercial implementation plan

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