Risk engineering   management ppt for agsb oct 19, 2011
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This presentation was for the Operations Management Cluster "Better SAFE Than Sorry" Safety Forum administered by the Operations Class M08, First Semester 2011. By Mr. Raul Mercado, President/CEO of ...

This presentation was for the Operations Management Cluster "Better SAFE Than Sorry" Safety Forum administered by the Operations Class M08, First Semester 2011. By Mr. Raul Mercado, President/CEO of LAJMAR Management & Technology Resources, Inc.

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Risk engineering management ppt for agsb oct 19, 2011 Presentation Transcript

  • 1. RISK ENGINEERING & MANAGEMENTCAREER OPPORTUNITIES for PRACTICING ENGINEERS & MANAGERS A Presentation for the ATENEO GRADUATE SCHOOL of BUSINESS FORUM “Better Safe than Sorry” By RAUL D. MERCADO. PME
  • 2. LAJMAR Management & Technology Resources, Inc. Copyright Oct.. 2011AGENDA 1. What is Safety 2. Safety in the Philippines 3. Laws and Regulations 4. Current state of safety in the Philippines
  • 3. LAJMAR Management & Technology Resources, Inc. Copyright Oct.. 2011WHAT IS SAFETY?
  • 4. LAJMAR Management & Technology Resources, Inc. Copyright Nov. 2010REASONS FOR MORE FOCUS 2005 – Buncefield Terminal Explosion, London, England
  • 5. LAJMAR Management & Technology Resources, Inc. Copyright Nov. 2010REASONS FOR MORE FOCUS2005 – Buncefield Terminal Explosion, London, England o Fires engulfed 23 large storage tanks o Off-site damage estimates (from insurance claims) totaled one billion English pounds
  • 6. LAJMAR Management & Technology Resources, Inc. Copyright Nov. 2010REASONS FOR MORE FOCUSSource: http://www.eoearth.org/article/Deepwater_Horizon_oil_spill#gen2 2010 – Deepwater Horizon Oil Rig Explosion, Gulf of Mexico o By June 9, BP stock had lost close to half its value, more than $82 billion, in the seven weeks since the spill started. o Cost of the response to September 29 amounted to approximately $11.2 billion, including the cost of the spill response, containment, relief well drilling, static kill and cementing, grants to the Gulf states, claims paid and federal costs.
  • 7. LAJMAR Management & Technology Resources, Inc. Copyright Nov. 2010REASONS FOR MORE FOCUS Source: http://www.eoearth.org/article/Deepwater_Horizon_oil_spill#gen22010 – Deepwater Horizon Oil Rig Explosion, Gulf of Mexico o On May 12, 2010, BP released a thirty-second video of oil coming out of the end of the broken riser—a crucial piece of data o Dr. Steven Wereley, a Mechanical Engineer at Purdue University and expert in fluid mechanics, estimated that the total flux from the end of the riser was 72,179 bbls/day (±20%)
  • 8. LAJMAR Management & Technology Resources, Inc. Copyright Nov. 2010REASONS FOR MORE FOCUSSource: http://www.eoearth.org/article/Deepwater_Horizon_oil_spill#gen2 2010 – Deepwater Horizon Oil Rig Explosion, Gulf of Mexico
  • 9. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011How Accidents Happen?Source: CCPS Guidelines for Hazard Evaluation Procedures, 1992 P WORKER R O TECHNOLOGY/ D ENVIRONMENT PROCEDURES U PROCESS C T WORK ENVIRONMENT FRAMEWORK
  • 10. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011COMPETENCY ORIENTED HAZARDS • Technical Attitude or Behavior knowledge based • Attitude or behavior Technical based Skill Knowledge • Skill based
  • 11. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011ENVIRONMENTORIENTED HAZARDS CHEMICAL • TOXICITY – Dose / Response – TLV – IDLH • FLAMMABILITY – LEL
  • 12. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011ENVIRONMENTORIENTED HAZARDSCHEMICAL Common Oxidizing Groups Chemical Group Chemical Formula peroxides O2-2• REACTIVITY nitrates NO3- nitrites NO2- – Water perchlorates ClO4- chlorates ClO3- chlorites ClO2- – Oxidizers hypochlorites ClO- dichromates Cr2O7-2 permanganates MnO4- persulfates S2O8-2
  • 13. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011ENVIRONMENTORIENTED HAZARDS PHYSICAL • Ionizing & Non-Ionizing Radiation / ELF/LASER • Electrical • Extreme Temperature • Noise (TLV: 90 dB)
  • 14. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011ENVIRONMENTORIENTED HAZARDS ERGONOMIC Repetitive Stress Injury – Carpal Tunnel Syndrome (occurs in the wrist, where friction on the nerve passing through the wrist carpals causes inflammation) – Tendonitis (swelling of the soft tissue around joints) – Tenosynovitis (applies to both the wrist and the fingers)
  • 15. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011ENVIRONMENTORIENTED HAZARDS BIOLOGICAL • Micro Organism • Infection
  • 16. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011EQUIPMENT or PROCESS HAZARDS PROCESS Hazards Are those hazards which are caused byengineering design which inadequately address risks attributed to the hazardous properties ofsubstances of chemicals used, poor operationor malfunction of the processes used to convertraw materials into finished products, which may lead to the unplanned release of hazardous materials
  • 17. LAJMAR Management & Technology Resources, Inc. Copyright Nov. 2010PROCESS RELATED INCIDENTS 1984 – Mexico City, Mexico –Explosion o 300 fatalities (mostly offsite) o $20M damages
  • 18. LAJMAR Management & Technology Resources, Inc. Copyright Oct.. 2011PROCESS RELATED INCIDENTS1984 – Bhopal, India – Toxic Material Released o 2,500 immediate fatalities; 20,000+ total o Many other offsite injuries o More than $600 Million in settlement cost
  • 19. LAJMAR Management & Technology Resources, Inc. Copyright Nov. 2010PROCESS RELATED ACCIDENTS 1988 – Norco, LA – Explosion o7 onsite fatalities, 42 injured o $400M+ damages
  • 20. LAJMAR Management & Technology Resources, Inc. COMMUNITY EMERGENCY RESPONSE PLANT EMERGENCY Copyright Oct. 2011 RESPONSE DIRECTION OF CATASTROPHIC ACCIDENT TRIGGERS AUTOMATIC ESD (AUTO SHUTDOWN DEVICES) PROCESS RISK MITIGATION PHYSICAL PROTECTION (RELIEF DEVICES) CRITICAL ALARMS & MANUAL SUPERVISION INADEQUATE RISK MITIGATOR FRAMEWORK HUMAN ERROR BASIC CONTROL & PROCESS ALARM PLANT DESIGN
  • 21. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011PROCESS RISK MITIGATIONFRAMEWORK
  • 22. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011PROCESS HAZARD ANALYSIS• HAZOP STUDY• FAILURE MODE & EFFECT ANALYSIS• FAULT TREE / EVENT TREE ANALYSIS• WHAT IF/CHECKLIST• EVENT & CAUSAL FACTORS ANALYSIS• LAYERS OF PROTECTION ANALYSIS• DISPERSION MODELING• BLAST OVER PRESSURE DESIGN
  • 23. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011PROCESS SAFETY PROCESS SAFETY Is the control of hazards which are caused by poor operation or malfunction of the processes used to convert raw materials into finished products, which may lead to the unplanned release of hazardous materials
  • 24. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011PROCESS SAFETY MANAGEMENT PROCESS SAFETY MANAGEMENT Is the strategic identification, evaluation, assessment and control of hazards which are caused by poor operation or malfunction of the processes used to convert raw materials into finished products, which may lead to the unplanned release of hazardous materials
  • 25. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011PROCESS SAFETY MANAGEMENTSYSTEM ELEMENTS I. PROCESS SAFETY INFORMATION II. EMPLOYEE INVOLVEMENT (ENGAGEMENT) III. PROCESS HAZARD ANALYSIS IV. MANAGEMENT of CHANGE V. OPERATING PROCEDURES VI. SAFE WORK PRACTICES VII. EMPLOYEE TRAINING & INFORMATION VIII. CONTRACTOR SAFETY IX. PRE-START UP SAFETY REVIEW X. MECHANICAL INTEGRITY XI. EMERGENCY PLANNING, PREPAREDNESS & RESPONSE XII. COMPLIANCE AUDIT XIII. PROCESS INCIDENT INVESTIGATION XIV. TRADE SECRETS
  • 26. LAJMAR Management & Technology Resources, Inc. RISK ASSESSMENT OFFUNCTIONALITY & INTEGRITY R.A.F.I.
  • 27. LAJMAR Management & Technology Resources, Inc. Operations, Maintenance &Q-Inspection Data, Incidents, Challenges The R.A.F.I. Committee Operation & Engineering Maintenance Management RCM RBI SafeCo Focal Point Focal Point Focal Point Integrated Reliability-Integrity-Safeguarding (IRIS) Web Studio System Proactive Operations-Maintenance Review -Inspection Strategies Effectiveness Safe Operation Availability Departmental Interface Execution Reliability of Proactive Tasks Overview of the Functional Process
  • 28. LAJMAR Management & Technology Resources, Inc.The Standard Elements of R.A.F.I.1. Reliability Centered Maintenance RCM – method foroptimizing the maintenance program, i.e., structured,focused and economical.2. Risk Based Inspection RBI – method for optimizing theinspection program, sustaining the integrity of the pressureenvelope.3. Process Safeguarding & Control SafeCo – method forclassification and implementation of instrumented processsafeguarding & control, i.e., safe, cost-effective, design-consistent strategy.
  • 29. The Standard Elements of R.A.F.I. RBI RCM SafeCo RAFI
  • 30. LAJMAR Management & Technology Resources, Inc.R.A.F.I. Process Overview Base Data Management Criticality Assessment Task Priority and Planning Task Execution Review and Update
  • 31. LAJMAR Management & Technology Resources, Inc.Major Benefits Delivered by R.A.F.I.> structured, holistic and industry-best system management program to date> focused training, progressively applied to develop expertise> professional challenges to current practices to improve production delivery> optimized value of process investment costs> business sustainability and better return of investment> productive business enterprise culture> pioneering foundations to develop local industry standard
  • 32. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011RISK in the CONCEPT of SAFETY RISK is the potential that a chosen action or activity (including the choice of inaction) will lead to a loss (an undesirable outcome). The notion implies that a choice having an influence on the outcome exists (or existed). Potential losses themselves may also be called "risks". Almost any human endeavour carries some risk, but some are much more risky than others.
  • 33. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011RISK in the CONCEPT of SAFETY RISK = (Probability of Accident Occurring) x (expected loss if accident occur) Risk: Combination of the likelihood of an occurrence of a hazardous event or exposure(s) and the severity of injury or ill health that can be caused by the event or exposure(s)
  • 34. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011RISK in the CONCEPT of SAFETY RISK MANAGEMENT is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives, whether positive or negative) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.
  • 35. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011RISK vs. SAFETY RISK or SAFETY ENGINEERING is the application of engineering analysis & methodologies to risk management. • Analysis technique could either be quantitative or qualitative.
  • 36. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011RISK in the CONCEPT of SAFETY Safety is the state of being "safe" (from French sauf), the condition of being protected against physical, social, spiritual, financial, political, emotional, occupational, psychological, educational or other types or consequences of failure, damage, error, accidents, harm or any other event which could be considered non-desirable.
  • 37. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011RISK in the CONCEPT of SAFETY SAFETY can also be defined to be the control of recognized hazards to achieve an acceptable level of risk. This can take the form of being protected from the event or from exposure to something that causes health or economical losses. It can include protection of people or of possessions.
  • 38. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011RISK in the CONCEPT of SAFETY SAFETY Management is the application of management processes including anticipation, identification, evaluation, analysis & control of recognized hazards to achieve an acceptable level of risk.
  • 39. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011RISK MANAGEMENT STRUCTURE CORP. GOALS BUSINESS CONTINUITY STRATEGIES EMERGENCY & DISASTER RESPONSE PLAN WORK INSTRUCTION PROCEDURES RESOURCE LISTS /RECORDS / REFERENCE DRAWINGS/ FORMS / GUIDES/MANUALS
  • 40. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011RISK MANAGEMENT PROCESSREFERENCE: BSI OHSAS 18001 MANAGEMENT MODEL
  • 41. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011RISK MANAGEMENT CYCLEREFERENCE: ILO OSH MANAGEMENT FRAMEWORK
  • 42. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011JOURNEY TOWARDS EXCELLENCE EXCELLENCE EFQM Continuous Improvement A tough, stiff EFFICIENT TQM climb and littered with “potholes” of doubt, confusion and Continuous misunderstanding. Improvement But as we inch ourselves upward, our IMS is the wedge that prevents us from losing our gains. EFFECTIVE ISO 9001
  • 43. LAJMAR Management & Technology Resources, Inc. Copyright Oct. 2011HISTORY OF SAFETY MOVEMENT RECORDED CHRONOLOGY OF SAFETY ACTIVITIES IN HISTORY
  • 44. STATUTES/ STDS of SAFETY in thePHILIPPINES • The existing Philippine OSH standard was first approved for implementation in 1978 and had first amendment in 1989. It provides general basic specifications for safe work practices in the manufacturing and process industry sectors.
  • 45. OTHER RELATED STDS to SAFETY inthe PHILIPPINES • PHILIPPINE OCCUPATIONAL SAFETY AND HEALTH STANDARD • ENVIRONMENTAL CODES OF THE PHILIPPINES • MECHANICAL ENGINEERING CODE (R.A. 8495) • NATIONAL STRUCTURAL CODE of the PHIL.( • NATIONAL BUILDING CODE • PHILIPPINE ELECTRICAL CODE • SANITATION CODE OF THE PHILIPPINES • FIRE CODE OF THE PHILIPPINES
  • 46. SAFETY STDS which are yet to beestablished the PHILIPPINES • PROCESS SAFETY MANAGEMENT for HAZARDOUS INDUSTRIES • ROAD SAFETY STANDARD • INTEGRATED MOTOR VEHICLE SAFETY STANDARD • EMERGENCY RESPONSE & SAFETY FOR HIGH RISE BUILDINGS • INTEGRATION OF EMERGENCY PREPAREDNESS in URBAN PLANNING • NANO TECHNOLOGY SAFETY
  • 47. NANO PARTICLES, AEROSOLS &AGGLOMERATES  NANO PARTICLES  NANO AEROSOLS  NANO THERMITE  ENGINEERED NANO MATERIALS • CARBON NANO TUBES (CNT)
  • 48. NANO OBJECTS, AEROSOLS &AGGLOMERATES WHAT ARE NANO PARTICLES, AEROSOLS & AGGLOMERATES  NANO PARTICLES - with all three external dimensions at the nanoscale  AEROSOLS - is a collection of nanoparticles suspended in a gas  AGGLOMERATES -Nano-objects have the pronounced tendency to agglomerate, thus forming agglomerates of micrometer or millimeter sizes, for instance in powders. These agglomerates can be disintegrated again, for instance by powerful stirring, as their component parts are bound by relatively weak forces.
  • 49. FOOD SAFETY in the PHILIPPINES • There is no single coherent national policy that imposes measures to protect food from hazards as it moves along the food chain. • But there are separate and interlinked guides and regulations on food safety from different agencies like Department of Trade & Industry, Department of Health, Bureau of Food and Drug (BFAD), Bureau of Product Standards, Department of Agriculture (DA) – Bureau of Agriculture and Fisheries Product Standards (BAFPS)
  • 50. FOOD SAFETY in the PHILIPPINES • Among the international standardisation initiatives that the Philippines participates in are those being lead by the International Organization for Standardization, Codex Alimentarius Commission, Asia Pacific Economic Cooperation (APEC), ASEAN Consultative Committees on Standards and Quality (ACCSQ) and Asian European Meeting. • A National Codex Committee, chaired by the Director of the Food Development Center of the Department of Agriculture, represents the country for Codex meetings on Standards for Food Additives and Contaminants.
  • 51. FOOD SAFETY in the PHILIPPINES • Food standards are published as Philippine National Standards following a standard documentation format aligned with the ISO documentation format.
  • 52. FOOD SAFETY in the PHILIPPINES • Existing food safety laws and subsequent issuances covers only some aspects of the food chain: R.A. 8172 Asin Law, R.A. No. 9296 The Meat Inspection Code of the Philippines, R.A No. 8976 Food Fortification Law, R.A. No. 8485 The Animal Welfare Act, R.A. No. 8435 The Agriculture and Fisheries Modernization Act, R.A. 7394 Consumer Act of the Philippines, E.O. No. 175. Amendments to Republic Act No. 3720, E.O. No. 851, Reorganizing the Ministry of Health, P.D 1144 Creating the Fertilizer and Pesticide Authority, R.A. No.3720 Food Drug and Cosmetic Act, Republic Act 9711 Food and Drug Administration Act and Republic Act 9997 National Commission on Muslim Filipinos Act.
  • 53. FOOD SAFETY in the PHILIPPINES • The main food safety agency, Food and Drug Administration formerly the Bureau of Food and Drug regulates processed food only. There is no national guideline for the minimum required facilities for food service establishments such as restaurants, fast foods, carinderias, canteens and homes and kitchens that cater or hawk food on streets although they are under the jurisdiction of LGUs as mandated in the Local Government Code ( R.A No. 7160). Also, among agencies concerned with food safety, there are overlaps in function. http://www.agham.org.ph/legislation/bills/authored/hb-3972-food-safety-act-of-2010.html
  • 54. THE ENDTHANK YOU