Guidelines for Integrating Management Systems and Metrics to Improve Process Safety Performance

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• Publisher: Wiley-AIChE
• Year: 2016
• Print ISBN: 9781118795033
• eBook ISBN: 9781118795101
• Edition: 1
• Topic: Technology & Engineering
• Subtopic: Chemical & Biochemical Engineering
• Index: Technology & Engineering

This book combines the synergies between performance improvement systems to help ensure safe and reliable operations, streamline procedures and cross-system auditing, and supporting regulatory and corporate compliance requirements. Many metrics are common to more than one area, such that a well-designed and implemented integrated management system will reduce the load on the Process Safety, SHE, Security and Quality groups, and improve manufacturing efficiency and customer satisfaction. Systems to improve performance include: process safety; traditional safety, health and environment; and, product quality.

Chapters include: Integrating Framework; Securing Support & Preparing for Implementation; Establishing Common Risk Management Systems – How to Integrate PSM into Other EH; Testing Implementation Approach; Developing and Agreeing on Metrics; Management Review; Tracking Integration Progress and Measuring Performance; Continuous Improvement; Communication of Results to Different Stakeholders; Case Studies; and Examples for Industry.

1 INTRODUCTION

Since its founding in 1985, the Center for Chemical Process Safety (CCPS) of the AmericanInstitute of Chemical Engineers (AIChE) has promoted the enhanced management of chemical process safety. The CCPS has always recognized that good safety performance is achieved througha combination of technology and management excellence.

The management programs for the process safety, occupational safety and health, environmental, quality and security groups have developed separately in many organizations. CCPS recognizes that significant overall operational risk reduction occurs when these programs establish common management systems and metrics across the groups managing them. Hence, merging the similarities and common needs of these different programs will lead to more efficient and effective management within the organization. This guideline provides both small and large organizations with approaches to help identify and evaluate and leverage the common systems and metrics across the groups based on the hazards and risks being monitored for each group.

1.1 THE NEED FOR INTEGRATION

Many companies have overlapping regulatory, industry and trade association, and certification requirements that can consume significant resources and attention. Identifying synergies between these performance improvement systems will help ensure safe and reliable operations, will help streamline procedures and cross-system auditing, and will support regulatory and corporate compliance requirements. Since some of the systems and metrics are common to more than one function, a well-designed and implemented integrated management system will help reduce the load on the process safety, occupational safety and health, environmental, quality and security groups. In addition, an integrated system will help improve manufacturing efficiency and customer satisfaction. Integration of process safety, occupational safety and health, environmental, quality and security performance improvement systems have been noted in recent metrics-related themes at conferences, webinars, journals and books.

In almost every region and industrialized country, regulations have been introduced that require formal process safety, occupational safety and health, environmental and security management programs. Examples for process safety regulations include: the U.S. OSHA Process Safety Management (PSM) Standard and U.S. EPA Risk Management Program (RMP), the Canadian EPA Environmental Emergency Regulations, and the European Directive Seveso II. Detailed reference lists, included in Appendix A, provide a summary of U.S. regulations (Table A-1), international regulations (Table A-2), voluntary industry standards (Table A-3), consensus codes (Table A-4) and organizations committing efforts to process safety (Table A-5).

Whether a facility is regulated or not, if it must handle hazardous materials and energies, a company’s success will be impacted by how well it applies the fundamental elements of a process safety and risk management system and integrates metrics which affect process safety performance with its other risk reduction programs. As is shown in Table 1-1, the “business case” for process safety has been noted by several organizations (ACC 2013a, CCPS 2006) and was succinctly stated by Trevor Kletz decades ago, with many variations since then: “If you think process safety is expensive, wait until you have an accident.” In addition to regulations, societal and political pressures from the public demand ever-better safety and environmental performance.

Every company needs to find ways to improve its operating efficiency and performance, reduce overall operating cost, and at the same time find ways to maintain and improve its competitive market position. Improving market position and customer satisfaction is inherent in an organization’s quality management program Although the management systems for process safety, occupational safety and health, environmental, quality and security may have developed separately, they have similar program-related expectations, such as being implemented with:

• Specific program-related record-keeping requirements, and
• Metrics used to demonstrate performance improvements of the program

{Note:The management systems for process safety (S), occupational safety and health (H), environmental (E), quality (Q) and security (S) are sequenced for reference as “SHEQ&S” in this guideline.}

When the different SHEQ&S management systems are not well coordinated, the sometimes conflicting goals and demands on an operating facility may prompt program changes that inadvertently contribute to an increased process safety-related operating risk. Unfortunately evidence of such conflicts exists today since industry still experiences many preventable incidents due to inadequate hazardous materials management systems and programs. Examples include catastrophic equipment failures which resulted from inadequately designed, monitored and/or maintained equipment reliability programs. (Bloch 2012, US CSB 2003, and US CSB 2011b).

Other benefits for successful integration include reduced operating costs and more effective use of staff managing the programs, reducing duplication of effort across an organization. The history of successful business cost re-ductions is reflected in the improved results for organizations that im-plemented quality management programs. Some of the benefits for integrat-ing programs using metrics which affect process safety performance and a quality management system approach are summarized in Table 1-1. This guideline is written to address the need for integration between the process safety, occupational safety and health, environmental, quality and security management programs. Each of these programs has similar risk reduction goals that, once combined, will help a company become more efficient and effective when managing its overall operational risk.

Table 1-1. The “Business Case” for Process Safety

Business Value^(1,2) - Reduced incident costs
Ethical	Corporate responsibility
Employee	Fatalities, injuries, emergency response
Environment	Cleanup, material disposal, environmental remediation
Equipment	Repairs or replacement of failed component or damaged equipment as a result of subsequent fire or explosion
Financial	Flexibility, sustained value, business opportunity, business interruption, feedstock/product losses, loss of profits, obtaining or operating temporary facilities, obtaining replacement products to meet customer demand [e.g., from a sister facility at another location]
Business value^(3) - Integrating management systems across groups
Ethical	Distributed across the value chain and government entities and stakeholders
Community relations	Improved communications through Community Advisory Panels
Liability protection	Reduced insurance premiums, reduced terrorist liability [the Security Code meets Department of Homeland Security (DHS) requirements through the SAFETY Act as a Qualified Anti-terrorism Technology]
Organizational efficiency	Improve efficiency by taking advantage of and by combining existing management systems, encourages teamwork by bringing together diverse staff from multiple management teams (Groups: environmental, health, and safety; operations, maintenance, community relations; shipping; security; regulatory compliance; and purchasing)
Competitive advantage	Continuous improvement activity aligning environmental, health, safety, sec...

Table of contents

• Cover
• Series
• TitlePage
• Copyright
• Acronyms and Abbreviations
• Glossary
• Acknowledgments
• Preface
• 1 Introduction
• 2 Secure Leadership Support Across Groups
• 3 Evaluate Hazards and Risks Across Groups
• 4 Identify Common Metrics Across Groups
• 5 Implement the Sheq&s Program
• 6 Monitor the Sheq&s Program Performance
• 7 Implement Changes to the Sheq&s Program
• 8 Examples From Industry
• Appendix A: Reference Lists for Global Process Safety Legislation and Sheq&s Organizations
• Appendix B: Recent Advances in Process Safety Metrics
• Appendix C: Potential Answers Describing the Need for Securing Support
• Appendix D: Detailed Case Study for Designing and Implementing a Sheq&s Program
• Appendix E: Equipment Integrity in the Equipment Life Cycle
• Appendix F: The Sheq&s Management System Mapping Survey
• Appendix G: The Process Safety Personnel Competency Survey
• References
• Index
• EULA