• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
The business case for process safety final ppt
 

The business case for process safety final ppt

on

  • 2,113 views

 

Statistics

Views

Total Views
2,113
Views on SlideShare
2,113
Embed Views
0

Actions

Likes
0
Downloads
74
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • The Business Case for Process Safety The Center for Chemical Process Safety (CCPS), a not-for-profit organization associated with the American Institute for Chemical Engineers, counts as its members more than 70 of the world’s leading manufacturers of chemicals, petroleum products, pharmaceuticals, and other related materials, as well as insurance companies and others that serve these industries. At the urging of the CCPS Advisory Board, an executive panel consisting of more than 20 senior industry executives, CCPS undertook this landmark study to identify the business case for companies to implement a strong Process Safety Management system. CCPS was assisted in this study by four Chief Executive Officers, the senior executive members of its Advisory Board, representatives from its member companies, and other industrial stakeholders. The study identified four distinct business reasons that cause a company to benefit from a strong Process Safety Program CCPS thanks you for sharing the “Business Case for Process Safety” with your company. If you would like assistance with this presentation, more information about CCPS, or general information about Process Safety, please contact CCPS at 212-591-7319 or ccps@aiche.org
  • The CCPS Advisory Board members include large company executives such as Arnold Allemang of The Dow Chemical Company, as well as executives from much smaller companies. This study showed that benefits of Process Safety accrue to companies of all sizes.
  • No further elaboration required
  • Qualitative Benefits Corporate Responsibility Impact the way the company is viewed by its customers, regulators, employees, and the public Business Flexibility License to Operate: The better you manage Process Safety, the less likely you are to have intervention from communities, regulators Increased business options: Another way of saying this is “Self Determination”, having a greater ability to get into the business you want, when and where you want to This study identified qualified benefits that the participants recognized, but did not attempt to assign economic values to these benefits
  • Quantitative Benefits Risk reduction You do not plan to have accidents, but you must bear the costs when accidents occur Alternatively, your insurance must bear these costs, with short and long term implications on premiums Sustained value The rigorous, integrated management systems required for Process Safety favorably impact quality, reliability, efficiency, and other parameters which directly impact the bottom line The study identified economic values realized by study participants for these quantitative benefits.
  • Process Safety A comprehensive system of good design and proactive operation that protect your company’s technical, operational, and human resources TECHNOLOGY Accurate process safety information Process hazard analyses Well defined safe operating procedures and practices Managing changes to equipment, technology, and personnel Designing inherently safer processes FACILITIES Mechanical integrity of plant equipment and software Preventative maintenance Safety reviews PERSONNEL Employee involvement and training Contractor management Incident investigation Auditing for improvement
  • Corporate Responsibility Slide is self explanatory Look for opportunities to link these topics to opportunities in your company Reminder: The benefits described on this and the next several slides were gleaned from interviews with Chief Executives and Senior Executives of large, medium, and small operating companies across a range of industries.
  • Corporate Responsibility Slide is self explanatory Look for opportunities to link these topics to opportunities in your company Reminder: The benefits described on this and the next several slides were gleaned from interviews with Chief Executives and Senior Executives of large, medium, and small operating companies across a range of industries.
  • Business Flexibility - Freedom to Operate Slide is self explanatory Look for opportunities to link these topics to opportunities in your company In particular, speaker may wish to describe examples pertinent to their company of situations in which any of the above have restricted business options or slowed the progress of a project Reminder: The benefits described on this and the next several slides were gleaned from interviews with Chief Executives and Senior Executives of large, medium, and small operating companies across a range of industries.
  • Business Flexibility - Freedom to Operate Slide is self explanatory Look for opportunities to link these topics to opportunities in your company In particular, speaker may wish to describe examples pertinent to their company of situations in which any of the above have restricted business options or slowed the progress of a project Reminder: The benefits described on this and the next several slides were gleaned from interviews with Chief Executives and Senior Executives of large, medium, and small operating companies across a range of industries.
  • Risk Reduction Most of the above are self explanatory. Protecting market share arises from avoiding having customers switch to an alternative supplier after an accident renders your company not capable to supply.
  • Risk Reduction The most obvious financial impact of an accident is the equipment loss and the impact of human injury Business interruption can also have a significant effect However, the loss of productive management time in responding to a major accident, time that could otherwise be spent by on growing and maintaining the business, may be the biggest and longest term impact of that accident It is also worth noting that individuals the chain of management may be held criminally liable for accidents resulting from failing to meet their obligations. More than the executive’s job may be at risk
  • Risk Reduction It is easy to see that your safety performance in one part of the country or world can impact your performance in other parts of the world. It is also readily apparent that an accident at a key supplier’s site can adversely impact your performance It is also a fact of life in this industry that an accident in an unrelated company can negatively impact your company For example, significant accidents can drive regulatory bodies to develop new regulations, which impact the entire industry Therefore, companies benefit from carrying the message of process safety across the company, through the supply chain, and throughout industry
  • Sustained value data These data were supplied by participants in a CCPS workshop in 2001. The actual data points obtained, stretching over this range, were taken from seven example facilities: Olefins Olefin derivatives Batch pharmaceuticals Batch emulsion polymerization Polystyrene Specialty polymers Petroleum refining
  • Sustained Value By meeting the obligations of Process Safety, which we must do to be a responsible corporate citizen, maximize our business flexibility, and avoid losses, we focus productive attention on these areas, with positive benefits, such as those listed here on the slide.
  • Sustained Value Continued listing of benefits Consider involving the audience to identify additional opportunities
  • Sustained Value Continued listing of benefits Consider involving the audience to identify additional opportunities
  • Sustained Value Continued listing of benefits Consider involving the audience to identify additional opportunities
  • Sustained Value Continued listing of benefits Consider involving the audience to identify additional opportunities
  • Sustained Value The data compiles the process safety value-added reported from the seven study facilities The largest savings were in the areas of Productivity – a direct top-line impact to the business Maintenance – a major cost reduction
  • As mentioned before, the rigorous attention to detail brought by Process Safety Management touches on many, if not all, areas of production and process development Process Safety Management must be the most robust – this just makes sense since the consequences of a Process Safety incident can be the most severe. The management framework for Process Safety is therefore readily adaptable and expandable to accommodate other required and voluntary management, such as those listed
  • Realize the benefits to achieving business excellence through process safety management Personnel at plant and corporate levels. Include accountability for operating unit executives Continual learning. The more you learn about process safety, the better your results in all four benefit areas. You can learn from courses, books, and by networking with peers in other companies Link your management systems based on the rigor of process safety management For example, goals could be around: implementation or integration of systems reduction of incidents, leaks, etc. reduction of off-site consequences reduction of on or off-site risk Use measurements to drive performance and communicate goals On a period basis (for example, every three years), revisit your process safety program and revalidate process safety studies to maintain improvements and to progress further
  • CCPS has three “Technical Steering Committee” meetings each year at which company representatives can share their experiences in process safety and discuss topics of current relevance At any time, CCPS has 10 – 15 projects underway, each aimed at developing technical and management guidance for process safety topics. Involvement in projects allows participants to learn in depth as well as to contribute to the body of industrial process safety knowledge CCPS’s annual international conference is the world’s premier annual process safety event, featuring attendees, speakers, and attendees from around the world CCPS sponsors companies are a community of networked peers that can help each other address process safety challenges. The CCPS publication program includes over 80 titles. Find the book you need at www.aiche.org/ccps/products

The business case for process safety final ppt The business case for process safety final ppt Presentation Transcript

  • The Business Case for Process Safety New Industry Study Shows Four Benefits:
    • Corporate Responsibility
    • Business Flexibility
    • Risk Reduction
    • Sustained Value
    • “ We have seen process safety benefit our business in ways we had not anticipated. We need to share this message with others.”
    • Arnold Allemang
    • Vice President, Global Manufacturing
    • The Dow Chemical Company
  • Introduction
    • A benchmark study of CCPS member companies provides conclusive evidence that process safety provides benefits essential to your business:
    • Two qualitative benefits
      • You can see them in the way the public, your shareholders, government bodies, and your customers relate to your company
    • Two quantitative benefits
      • These have measurable impact in terms of your bottom line and company performance
    All four benefits combine to support the profitability, safety performance, quality, and environmental responsibility of your business
  • Two Qualitative Benefits
    • Corporate Responsibility
      • Image, reputation, and brand
    • Business Flexibility
      • License to operate
      • Increased business options
  • Two Quantitative Benefits
    • Risk Reduction
      • Process safety prevents human injury
      • Process safety avoids significant losses and environmental damage
    • Sustained Value
      • Process safety helps boosts productivity
      • It helps produce high quality products, on time, and at lower cost
      • It contributes to shareholder value
  • What is Process Safety?
    • A management system to help prevent major incidents
    • Essential for managing complex chemical operations
    • Process Safety focuses on:
      • Technology
      • Facilities
      • Personnel
  • Corporate Responsibility
    • An effective process safety program displays sustained corporate responsibility
    • It helps you:
      • Fulfill your obligation to protect employees and the community
      • Enhance customer and supplier relationships
      • Comply with regulations
      • Conform to industry standards worldwide
  • Corporate Responsibility
    • Process Safety:
    • Protects reputation and shareholder value
    • Creates lower risk perception by investors
    • Increases value of corporate image and brand
    • Reduces concerns within the local community
    • Engages employees - morale, loyalty, retention
    • Helps assure insurance coverage at attractive rates
    • Enhances lenders’ confidence
    • Helps regulators understand your facility
  • Business Flexibility
    • A company’s freedom to operate can be severely compromised due to an accident
      • regulatory scrutiny
      • legal complications
      • intervention by directors when key stakeholders sense increased risk
      • community discontent
    • Process Safety is how accidents are avoided
  • Business Flexibility
    • Proves your worthiness to hold a license to operate
    • Strengthens and maintains good relationships with the local community
    • Helps investors feel confident in your ability to grow and earn profits
    • Helps you attract and retain high performance staff
    • Helps you obtain approval for expansion permits or new facilities more quickly
    • Strengthens and maintains good relationships with regulators
  • Risk Reduction
    • A robust process safety program will help your company reduce risk and avoid loss
      • Save lives and reduce injuries
      • Reduce property damage costs
      • Reduce business interruptions
      • Protect market share
      • Reduce litigation costs
      • Reduce regulatory penalties from accidents
      • Reduce regulatory attention
  • Risk Reduction
    • Benefits to your company
    • Significant reductions in injury rates
      • One company reduced injuries and fatalities resulting from major incidents by 50%
      • This saved $5 million/year in losses
      • Additional savings of $3 million/year in worker’s comp costs
    • Incidents cause operational interruptions
    • Incidents divert management’s attention from long-term business planning
  • Risk Reduction
    • Effective process safety programs provide industry-wide benefits
      • What happens at your plant in Beijing can affect your plants in Brussels or Baton Rouge
      • An incident at an unrelated company negatively affects the public’s perception of the entire industry
      • An incident at a raw material can keep you from meeting obligations to your customers
  • Sustained Value
    • Companies in this study reported significant direct cost benefits of up to:
      • 5% increases in productivity
      • 3% reduction in production costs
      • 5% reduction in maintenance costs
      • 1% reduction in capital budget
      • 20% reduction in insurance costs
  • Sustained Value
    • Process Safety helps increase productivity:
      • Increased process and equipment reliability from mechanical integrity programs
      • User-friendly, accurate operating procedures
      • Improved team effectiveness through employee training
      • Employee ownership of the systems
      • Enhanced troubleshooting capabilities
      • Extended intervals between major turnarounds
      • Decreased turnaround time for major turnarounds and minor repairs
  • Sustained Value
    • Production costs are reduced through
      • Improvement in yields
      • Lower costs for material rework (quality)
      • Lower costs for waste stream disposal
      • Prevention of hazards and operability issues before they occur
      • More efficient staffing requiring less supervision
      • Engaged employees participating in continuous improvement
  • Sustained Value
    • Maintenance costs are reduced through
      • Effective equipment maintenance procedures
      • Contractor safety programs
      • Repairing or replacing critical equipment before it fails
      • Avoiding unplanned shutdowns
      • Lower maintenance turnaround costs
      • Thorough periodic inspection
    • Capital budgets are reduced through
      • Inherently safer process designs that begin in the conceptual phase
      • Process hazard analyses for new projects and facilities
      • Lower capital expenditures because project teams have up-to-date process safety information
    Sustained Value
    • Insurance costs are reduced through
      • Effective emergency planning and response
      • Reporting and investigation of “near misses” to identify potential problems early
      • Thorough incident reporting and investigation programs to prevent incidents from being repeated
      • Lower casualty insurance premiums
    Sustained Value
  • Sustained Value Data Source 2001 CCPS Workshop
  • What Process Safety Can Do
    • Process safety supports and underpins other management systems
    • One of the most robust
      • Responsible Care ®
      • Quality
      • Environmental compliance
      • Worker health and safety
    • Combine process safety management with other systems to increase efficiency
  • Business Case Summary
    • A robust process safety program enhances your business four ways…
      • Displays your company’s high level of corporate and social responsibility
      • Gives your company the freedom to manage your business
      • Helps your company manage risk and prevent major losses
      • Creates sustained value for your company and shareholders
  • The Path Forward
    • REALIZE THE BENEFITS: Seven key steps
      • Assign personnel who will be accountable
      • Adopt a personalized company philosophy of process safety
      • Learn more about process safety
      • Take advantage of the strong synergy process safety has with your other business drivers
      • Set achievable process safety goals
      • Track your performance
      • Revisit your process safety program
  • CCPS Support
    • Contact CCPS to find out about:
      • How your company can become a CCPS sponsor
      • Our process safety books
      • Regular networking and conference opportunities
      • Effective training resources
      • Peer input to help you build or upgrade your process safety program
      • Participation in projects that expand our industry’s capabilities in Process Safety
      • Visit www.aiche.org/ccps for more information