Paper Implementing Psm Upgrade In Response To Nep Psm Inspection Final Rev 2


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A guide to preparing for, managing, and responding to an OSHA Refinery or Chemical Plant PSM NEP Inspection

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Paper Implementing Psm Upgrade In Response To Nep Psm Inspection Final Rev 2

  1. 1. PSM Upgrade in Response to PSM NEP Implementing a Process Safety Management System Upgrade in Response to an OSHA Refinery PSM NEP Inspection A Practical Approach that Supports Operational Excellence Principal Author: Robert Walter Co-Author: Richard Foottit Company: AntiEntropics, Incorporated P.O. Box 692 New Market, MD 21774 Co-Author: Brian Nelson Company: Suncor Energy USA Commerce City Refinery 5801 Brighton Blvd. Commerce City, CO 80022 Prepared for Presentation at American Institute of Chemical Engineers 2009 Spring National Meeting 43rd Annual Loss Prevention Symposium Tampa, FL April 27-30, 2009 © AntiEntropics, Inc. 2009AIChE shall not be responsible for statements or opinions contained in papers or printed in its publications. Page 1 of 36
  2. 2. PSM Upgrade in Response to PSM NEPAbstractThis paper presents a brief analysis of the Occupational Safety and Health Administration (OSHA) PetroleumRefinery Process Safety Management National Emphasis Program (NEP) citation results as of early 2009. Itincludes trends and data convergences distilled from the OSHA inspections performed to date.Recommendations for preparing for PSM NEP level inspections are provided as well since preparation is oftenessential to an efficient inspection and helpful to a thorough abatement effort.A proven approach to designing and implementing an upgrade project for OSHA process safety managementsystems and EPA risk management program – program 3/prevention programs is described. The modelpresented can be targeted to a facility’s NEP specific citations or used for a general PSM system effectivenessupgrade.One key aspect of implementing an effective process safety management system is a need for a corporate andfacility culture that supports operational discipline that leads to operational excellence in all four of theindustry’s primary sustainability drivers: safety (both personnel and process), environmental responsibility,product quality, and long term economic success. Page 2 of 36
  3. 3. PSM Upgrade in Response to PSM NEPContents 1. What have we learned about refinery process safety performance? ................................................................... 4  1.1 – What does the current data show? ............................................................................................................. 4 2. How can we prepare for an efficient refinery PSM NEP Inspection? ................................................................ 9  2.1 Self Analysis Against the Directive .............................................................................................................. 9  2.2 Prepare your management, technical staff, and hourly employees for the audit ........................................ 10  2.3 Additional resources to consider ................................................................................................................. 11  2.4 Tools to assist in an efficient inspection ..................................................................................................... 11 3. Upgrading a Refinery PSM System after a PSM NEP Audit ........................................................................... 15  3.1 Citation Abatement ..................................................................................................................................... 15  3.2 Designing and Implementing a PSM Upgrade in Response to the Inspection ........................................... 16  3.3 Employee Participation Upgrade ................................................................................................................ 17  3.4 Process Safety Information Upgrade .......................................................................................................... 18  3.5 Process Hazard Analysis Upgrade .............................................................................................................. 20  3.6 Operating Procedures Upgrade ................................................................................................................... 21  3.7 Training Upgrade ........................................................................................................................................ 22  3.8 Contractors Upgrade ................................................................................................................................... 23  3.9 Pre-startup Safety Review Recommendation ............................................................................................. 24  3.10 Mechanical Integrity Upgrade .................................................................................................................. 24  3.11 Hot Work Permit Upgrade ........................................................................................................................ 26  3.12 Management of Change Upgrade ............................................................................................................. 27  3.13 Incident Investigation Upgrade ................................................................................................................. 28  3.14 Emergency Planning and Response Program ........................................................................................... 29  3.15 Compliance Audits Upgrade ..................................................................................................................... 29  3.16 Trade Secrets............................................................................................................................................. 30  3.17 Planning a PSM Implementation Upgrade Project ................................................................................... 30  3.18 ORGANIZATIONAL CULTURE: A Necessary Commitment to Operational Discipline ..................... 33 4. Conclusion ........................................................................................................................................................ 35  Page 3 of 36
  4. 4. PSM Upgrade in Response to PSM NEP1. What have we learned about refinery process safety performance?  Human beings, who are almost unique in having the ability to learn from the experience of others, are also remarkable for their apparent disinclination to do so. Douglas AdamsDirective CPL 03-00-004 - Petroleum Refinery Process Safety Management (PSM) National EmphasisProgram was born in the aftermath of an escalating number of fatal or catastrophic refinery incidents. The BPTexas City refinery accident of 2005 served to focus both government and public attention to the issue ofrefinery incidents involving fatalities or catastrophic loss or potential for such loss.It appears that after almost 20 years since its promulgation, many refineries have still not fully implemented theprograms required to support the philosophy behind 29 CFR 1910.119, Process Safety Management of HighlyHazardous Chemicals. OSHA as an organization accepted some of the responsibility for the apparent state ofaffairs regarding industry’s implementation of its own process safety management regulation. The agency hadsimply not focused enough on enforcing the process safety management standard. Whatever the reasons mayhave been for the lack of focus by industry or government on this important rule; governmental reductions inforce, an economy that grew dramatically and shrank just as dramatically during that period, the burden ofexisting personnel safety issues, the performance based nature of the PSM standard, it seemed the refiningindustry was proving that closer OSHA oversight was a necessary piece of the equation.The agency brought its national emphasis program tool to bear on this situation in order to detail…policies andprocedures for implementing a National Emphasis Program (NEP) to reduce or eliminate the workplacehazards associated with the catastrophic release of highly hazardous chemicals at petroleum refineries. Withthis tool, OSHA inspectors could better analyze a company’s performance based approach to PSM and refinersgained an immediate re-education on critical aspects of a high quality process safety management system. Thedirective’s appendix A - Static List of Inspection Priority Items (questions that will be asked of every refinery)and X.E. 3. - Documentation to be Requested - General and Process Related sections helped refiners understandthe depth to which the OSHA inspection teams would be delving. The directive focuses on actualimplementation of a refinery’s process safety system, not its mere existence.In the nearly two years since the petroleum refinery PSM NEP was announced and initiated, both OSHA andthe refining industry have learned much about where the major issues may lie regarding PSM implementationand new ways organizations can implement this performance based standard. It should be added that theEnvironmental Protection Agency’s (EPA) 40 CFR Part 68, Risk Management Programs for ChemicalAccidental Release Prevention, which contains PSM’s sister rule – Subpart D, Program 3 Prevention Programessentially mirrors the requirements of the process safety management standard and applies to almost all therefineries affected by the PSM NEP. With this being the case, the learning experienced from the OSHARefinery PSM NEP can be applied in some fashion to any site covered by either rule – whether the learner is agovernment inspector, a refinery manager, or an industry process safety resource.1.1 – What does the current data show?By using the informative OSHA web-based database Integrated Management Information System (IMIS), a usercan search for information about how the national emphasis program is proceeding and where the inspectors arefinding issues. By following this information since the PSM NEP’s inception, it is also possible to identify Page 4 of 36
  5. 5. PSM Upgrade in Response to PSM NEPprobable trends and changes in how the inspections are being carried out. As an aside, the website helps withdetermining such information as:  Frequently Cited OSHA Standards  Industry Profile for an OSHA Standard  General Duty Standard SearchAnother interesting statistic is that as of this writing, ~ 670 citations have been issued and ~480 are PSMrelated. This means that ~ 28% of the citations are non-PSM related. This is critical information that can beeffectively worked on during the wait time for a site’s inspection to commence. Proactive safety improvementduring this period can reduce the number of total citations resulting from the inspection.1.1.1 – Citations per PSM ElementOf the 14 elements of process safety, paragraph (p) trade secrets has had no citations issued to date. The chartbelow shows the current citations per element for approximately 30 refineries for which we have data:Figure 1.1 – NEP Inspection Citations by PSM ElementFour elements stand out as attracting the most citations. The top four elements in regard to total citations are: 1. Operating Procedures – 90 citations 2. Mechanical Integrity – 88 citations 3. Process Hazard Analysis – 83 citations 4. Process Safety Information – 70 citations Page 5 of 36
  6. 6. PSM Upgrade in Response to PSM NEPThese four elements provide a large target for any auditor or inspector due to the documentation needs inherentto each. One oddity noticed is that management of change, an element also having great documentationrequirements and arguably the heart of an effective process safety management system, was not cited moreoften. To any process safety professional, it is apparent that for almost every citation in the top four elements:operating procedures, mechanical integrity, process hazard analysis, or process safety information, there mightbe a matching management of change failure indicated.1.1.2 – Total Citation Cost by PSM ElementSince the refining industry is focused on costs and benefits, as is any business, it is interesting to note the totalcitation costs per element. The chart below provides this data.Figure 1.2 – NEP Citation Total Cost per ElementThe same top four elements are notably receiving the greatest total amount in citation costs; however, the orderhas changed. 1. Mechanical Integrity – $695K 2. Process Hazard Analysis – $547K 3. Process Safety Information – $365K 4. Operating Procedures – $347K Page 6 of 36
  7. 7. PSM Upgrade in Response to PSM NEP1.1.3 – Average Citation Cost by PSM ElementThe fact that the order of the top four elements changed concerning number of citations and distribution of totalcitation costs directs attention to the average citation cost per PSM element to see whether some elements arereceiving higher ranges of penalty costs. The following chart provides this data. U.S. Department of Labor - Occupational Safety and Health Administration NEP Inspection Citations - Average Cost/Citation Last Updated: 12/18/2008 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Com Hot Inc. EP PSI PHA OP Trn. Cont. PSSR MI MOC EP&R p. Work Inv. Audit Dollars 2,502 5,218 6,588 3,860 2,175 3,077 4,500 7,896 3,375 3,845 3,730 5,556 2,899Figure 1.3 – Average NEP Citation Cost by ElementNotably, operating procedures drops from the top four elements in terms of average cost per citation andemergency planning and response takes the third highest average position. 1. Mechanical Integrity – $7.8K per citation 2. Process Hazard Analysis – $6.6K per citation 3. Emergency Planning and Response – $5.5K per citation 4. Process Safety Information – $5.2K per citationIf average cost per citation is related to the OSHA inspection teams’ view of element criticality to workersafety, this data shows the relative weight of an element in general combined with the seriousness of theviolations cited. Page 7 of 36
  8. 8. PSM Upgrade in Response to PSM NEP1.1.4 – What can we derive from this analysis?One refinery undergoing a PSM NEP inspection revisited all of its past compliance audits to compare againstthe OSHA inspections by industry data. They found that the top four elements in regard to OSHA’s citationsmatched the top four elements in terms of self-assessed numbers of findings over the past 6 years in complianceaudits. The order of their self analysis for audit findings was: 1. Mechanical Integrity 2. Process Safety Information 3. Operating Procedures 4. Process Hazard AnalysisAnd, as their NEP document requests showed during the inspection, these same four top elements weresimultaneously getting the most scrutiny from the regional inspectors performing the site inspection. Oneconclusion could be that even knowing the elements that present opportunities for improvement in PSM doesnot make it easier to implement a bulletproof system. The top elements being cited by OSHA in the refineryPSM NEP effort present managerial, resource, and logistical issues that are not easily resolved.If an organization has undergone past OSHA audits, they also know that the citation cost can be quitemisleading. A relatively small OSHA penalty can have real abatement costs serveral times the amount of theOSHA fine.Two things were also noted when standing back and observing the citation data build. The early NEPinspections varied widely in the number of citations and the penatilites assessed. Later citations, those occuringafter July 2008, seem to match better in terms of target elements, citation numbers, and citation costs. Thiscould indicate organizational learning on behalf of the OSHA inspection teams.Additional wording not seen in the early citations appeared. A typical notification of penalty adheres to a veryspecific set of issues/finding and abatement requirements are most often very specific to the citation. Rememberthat the OSHA team will normally look at just a couple of selected units in a given refinery. For example, if apenalty is received specific to 4 randomly selected procedures that fulfill part of the operating procedureelement for a selected unit, abatement would be to correct those four procedures to abate the citation with noadditional company requirements. Through networking and the freedom of information act (FOIA), companiesbegan sharing the actual citations to enhance each other’s NEP preplanning, inspection support, and abatementactivities. In the fall of 2008 the following phrase (and variations of it) began to be included in some citationdetails:This may be a system-wide occurrence that requires evaluation of process equipment throughout the facility.This phrase and its variations imply a new look at the proper way to abate an OSHA citation. Discussions areongoing among PSM managers and legal support staffs to analyze the impact. Page 8 of 36
  9. 9. PSM Upgrade in Response to PSM NEP2. How can we prepare for an efficient refinery PSM NEP Inspection?  Before everything else, getting ready is the secret to success Henry FordWhat are some of the things a refinery can do to prepare for an NEP inspection? An NEP inspection willprobably be the most rigorous PSM audit a site ever undergoes. This section provides recommendations toconsider and examples where appropriate. The general recommendations for preparation are straightforward:  Perform a self analysis of those PSM NEP directive aspects of your process safety management system that can be pre-considered. o until the OSHA team selects the unit(s), specific actions are limited for many static questions and document requests o identify the best human resources for each question and document request type. This is a useful preparation exercise as it prepares personnel for their roles in the OSHA team’s inspection.  Prepare your management, technical staff, and hourly employees for the audit o Educate them on an overview of the PSM NEP directive o Educate them on their rights as workers in regard to an OSHA inspection o Prepare key people on their roles in the onboarding and opening conference activities o Select and train your NEP response team  PSM group  Escorts  Security o Predetermine how you will efficiently support and escort the OSHA inspectors when they are on site  Safety orientation  Interviews  Analyze the need for additional paralegal assistance and specific equipment to support the inspection and the refinery’s legal needs (for example, bates stamping, high speed copying, high speed scanning)  Provide a suitable workspace for the OSHA inspection team  Create documents and tools that can assist in helping the OSHA inspectors and your organization track and respond to the team’s requests o Document request and transmittal form o Document request and transmittal log o Escort Logs  Create a method for tracking each document request as it is provided by the OSHA inspectors o Consider tracking the document request item, due date, responsible person, date copied for the company files, date delivered to OSHA, and special notes2.1 Self Analysis Against the DirectivePerforming a self analysis of a site’s anticipated strengths and weaknesses against the static questions and thedocuments request list is a good exercise.A table can be prepared using the directive contents. Consider tracking:  The question or document request  The responsible person(s) Page 9 of 36
  10. 10. PSM Upgrade in Response to PSM NEP  Internal hardcopy or software references and resources available for each item (for example, PSM administrative procedures, safe work practices, MOC/PSSR tracking records, inspection data, piping data)  A yes, no, or not applicable column to identify things that are obviously ready, need work, or may not apply (for example, none of the blowdown questions apply if the site has no blowdowns in accordance with the OSHA definition.  A text field for your self analysis of the status and issues related to responding to the inspection question or document requestUpdate this report regularly during the waiting period before the unannounced inspection. Again, some itemscannot be fully prepared for until the OSHA team selects the unit(s) in accordance with the directive.2.2 Prepare your management, technical staff, and hourly employees for the auditMost refinery personnel are quite busy with day to day work requirements and may not pay attention to theindustry regulatory climate unless they work in the PSM, safety, or environmental groups. Consider a brieftraining/discussion session to educate them on an overview of the PSM NEP directive. One refinery used thefollowing training objectives in their sessions. The entire refinery staff received a mandatory training sessionwhere they reviewed these topics:  Upon completion of this session, participants should be able to: o Describe the OSHA Petroleum Refinery Process Safety NEP program. o Describe an individual’s rights during an inspection, including rights during an interview. o Identify the types of questions from the NEP directive that may be asked during an interview. o State how and why we control inspection documents. o Prepare to assist the OSHA NEP inspection team if askedPreparing key people on their roles in the onboarding and opening conference activities will make the arrival ofan OSHA team more controlled and less impactful on day to day refinery operations (OSHA states in thedirective that the inspection should not disturb operation of the refinery). Some things to consider:  Prepare site security staff for their role in OSHA’s arrival. o The notifications to make o Where to have the inspectors assemble while awaiting their escort  Plan the level of training to be provided for the OSHA team’s entrance to the site o Visitor level? o Contractor level?  Prepare your escorts for their roles. Emphasize that their visitor’s safety is the primary goal.  Prepare the escorts to document (use an escort log) to note informal OSHA team questions and areas of interest during the inspection. This will help the refinery staff understand the direction the audit is taking and when specific elements are being analyzed.  Prepare the selected site management and staff for the opening conference. The requirements are: o To verify that the establishments SIC/ (NAICS) code is 2911/ (32411) to confirm that the workplace is a refinery within the scope of the instruction. o Present the OSHA team with a review of emergency response procedures and emergency alarms. o Prepare to provide them with an overview of the processes/units at the refinery, including block flow and/or process flow diagrams indicating chemicals and processes involved. Page 10 of 36
  11. 11. PSM Upgrade in Response to PSM NEP o Prepare to describe catastrophic release scenarios that might occur, what those results could be (worst case scenarios), and what controls are in place to prevent them from happening.One suggestion that is obvious but difficult due to human nature is – help management (refinery/corporate) totruly see the OSHA inspection as a positive learning opportunity. An efficient, accurate OSHA inspection canprovide direction to upgrading a refinery’s PSM program into one that supports sustainability. Long termmaintenance of a rigorous refinery PSM system will prove its business case in terms of:  Corporate Responsibility  Business Flexibility  Risk Reduction  Sustained ValueAn effective PSM system upgrade resulting from the inspection can actually increase a refienery’s reliabilityand ability to sustain long term success.2.3 Additional resources to considerTo ensure that the company and its legal staff have access to the same materials provided to OSHA in hardcopy, analyze the need for additional paralegal assistance and specific equipment to support the inspection andthe refinery’s legal needs. Thousands of pages of documents are often transferred to OSHA in response to thePSM NEP inspection. Tracking each document and keeping a copy requires both preparation and logisticalsupport.It may benefit the escorts and PSM staff to ensure special radios, safety equipment, and headsets for use out inthe units are available and that transportation is arranged for larger refineries. Preplan where the formalinterviews may take place and the impact on worker scheduling and refinery staffing needs.Prepare the OSHA inspection team’s on-site work area. Consider the equipment that will be needed to handlethe to sheer volume of documents collected. Preplanning may reduce the time period that the inspectors will beon-site.2.4 Tools to assist in an efficient inspectionCreating tools to help the OSHA inspectors and your organization track and respond to the requests is anotheritem to consider o Document request and transmittal form o Document request and transmittal log o Escort logs o A tool for tracking each document request as it is provided by the OSHA inspectors and logging the refinery’s responsesSome examples of such tools that one refinery developed in advance of their inspection are provided in thefollowing pages. Customize these as needed to be more formal or less formal to meet site needs. Page 11 of 36
  12. 12. PSM Upgrade in Response to PSM NEPFigure 2.1 – Example Document Request and Transmittal Form Page 1 Page 12 of 36
  13. 13. PSM Upgrade in Response to PSM NEPFigure 2.2 –Example Document Request and Transmittal Form Page 2 Page 13 of 36
  14. 14. PSM Upgrade in Response to PSM NEPFigure 2.3 – Example Escort Log Page 14 of 36
  15. 15. PSM Upgrade in Response to PSM NEPAEI NEP SUPPORT TEAM – Inspection Status Update - Document Requests 94 of 103 items prepared as of 10/6/08 (91%)Revision 12 92 of 103 items transmitted to OSHA (89%)OSHA Item Item Description – verbatim Due Primary Support Status Date to Date to Notes:Reference no. Date Contact Contacts Legal OSHAand Date [References]List 0 Letter 1 A list of all PSM (29 CFR 1910.119) 9/10/08 J. Doe J. Smith Finished 9/10/08 9/10/089/8/08 covered process units with the date that the unit was put in service and the number of employees assigned to each unit per shift. [REF: X.E.3.b./m.]Figure 2.4 – Example Inspection Status Update Table3. Upgrading a Refinery PSM System after a PSM NEP Audit  It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change. Charles DarwinThe OSHA inspectors have finished with their document requests and personnel interviews. The team has lefttheir onsite workspace and demobilized. The closing conference has been held. The citations have beenfinalized and delivered to the refinery manager. Any citation contest activity in accordance with OSHA protocolhas been completed. The refinery staff has almost recovered from a newly discovered medical condition PSMNEP fatigue. Now the response begins.Of course, the specific citation abatement efforts take first priority in the PSM NEP response activities.However, forward thinking companies can use the experience of this surgical and in depth analysis of one ormore units at their refinery to uncover the opportunity to embark on a PSM system upgrade effort across theentire facility as warranted. If the PSM group was successful in helping site and corporate managementunderstand the business case for a high quality PSM program, these opportunities are more likely to be taken.3.1 Citation AbatementIf the refinery has prepared for the audit to some degree, provided the requested information to the best of theirability, and has maintained a good relationship and open communications with the regional inspection team, theOSHA inspectors can actually assist in clarification of the citations and discuss methods for closing the citationsin a timely manner as abatement progresses.The example Gantt chart can only show an estimated period for abating the average of 15 citations seen ininspections completed to date. The period allowed for abatement is often only one to two months – the timefrom the issuance date to the date by which the violation must be abated – and the issuance date is typically thesame for all of the citations received. This situation could cause the refinery staff to have a relapse of PSM NEPfatigue. Working closely with refinery legal staff may assist in negotiating additional time to abate citations thatare more complex.However, this paper is about more than satisfying OSHA’s specific PSM NEP citation abatement needs.Consider that the minimum effort. Remember that the PSM regulation may not even have existed if refineries Page 15 of 36
  16. 16. PSM Upgrade in Response to PSM NEPand chemical plants had been following a similar philosophy in designing, building, and operating theirfacilities over the past 50 plus years. The basic tenets of PSM are rooted in basic good engineering andmanagement practices.A given refinery’s citations will be unique to it, although the industry inspection data provided above can pointto likely elements for which to prepare. Your pre-inspection self-analysis is helpful with this as well as thetracking of the specific document requests that were logged and fulfilled.One refinery identified the areas that received the most interest by the NEP inspectors during the on-site phasealong with the non-PSM personnel safety issues that were raised during the onsite inspection period. With theseidentified, they were able to begin addressing issues that may likely appear in the final citations in advance oftheir receipt. This displays to the regional office that the company is proactive concerning worker safety (andcreates extra time later to work on the more complex citation abatement activities).3.2 Designing and Implementing a PSM Upgrade in Response to the InspectionUpon satisfying the citation abatement requirements, a refinery has the opportunity to apply their learning fromthe OSHA selected units across all the other refinery units for items like operating procedures and training andto site-wide PSM systems such as management of change, pre-startup safety review, mechanical integrity, andcontractors.Whether a facility is waiting for the inspection to begin, or they have already received the final citations, theyshould begin looking at three aspects of their PSM program at a high level for upgrade opportunities.  Administrative procedures – that describe the high level programmatic approach to compliance  Work procedures – as indicated by a specific element’s needs (for example operating procedures, maintenance procedures, safe work practices, emergency response procedures  Documentation – the evidence that the administrative and work procedures are being used.The wait time in advance of the PSM NEP inspection can be used to start upgrade of your PSM program. As theinspection start is unannounced, it is not necessary to rush any changes to the more complex elements. Beprepared for the OSHA team to arrive any day. However, diligently begin the self-analysis against the directiveto forestall surprises during the inspection. One refinery uses the following documents to capture themethodology management has adopted to help comply with PSM and the EPA risk management program. Page 16 of 36
  17. 17. PSM Upgrade in Response to PSM NEPIf developing any of these administrative procedures, be sure to verify that you can do what you say you willdo. Avoid describing compliance methods going beyond the PSM requirements if you do not have the cultureand resources in place to apply that method thoroughly. Document Number / Document Title PSM-RMP-01 - PSM/RMP Compliance Manual Descriptions PSM-RMP-02 - Employee Participation PSM-RMP-03 - Process Safety Information PSM-RMP-04 - Process Hazard Analysis PSM-RMP-05 - PSM/RMP Procedure Program PSM-RMP-06 - PSM/RMP Training Program PSM-RMP-07 - Contractors PSM-RMP-08 - Pre-Startup Safety Review PSM-RMP-09 - Mechanical Integrity PSM-RMP-10 - Hot Work Permit PSM-RMP-11 - Management Of Change PSM-RMP-12 - Incident Investigation PSM-RMP-13 - Emergency Planning And Response PSM-RMP-14 - Compliance Audits PSM-RMP-15 - Trade Secrets PSM-RMP-16 - RMP Management System PSM-RMP-17 - RMP Executive Summary PSM-RMP-18 - Risk-Based Process Safety GuidelinesTable 3.1 – Example PSM/RMP Administrative proceduresThe best approach is to involve a representative from any group - and anyone with a specific title - called out inthe administrative procedure as having responsibilities or accountabilities in your program in a brief meeting tocompare procedure against practice. Make changes to reflect reality (and compliance) then send the resultingdocument or revised document to more players in that element’s execution for their input prior to an approvalphase review by the owner. The owner of these administrative procedures is typically the facility manager,although the PSM manager is often chartered with maintaining the PSM administrative procedures.We examine some recommendations for each of the 14 elements of PSM in the following sections.3.3 Employee Participation UpgradeVerify that you have formally documented an employee participation plan that applies across the entirecomplex. In this document, state how each of the other PSM/RMP compliance plan documents describesopportunities for hourly and salaried employee participation. Reference those documents here as they providemore detailed workflows that may call out employee participation opportunities in detail. Some basic items toensure are covered include:  Does the facility’s written employee participation plan-of-action include information on how employees will be consulted on how often operator refresher training is needed? Page 17 of 36
  18. 18. PSM Upgrade in Response to PSM NEP  Has the facility implemented its plan-of-action to consult the employees about the operator refresher training frequency?  Can the facility demonstrate how they consulted employees to develop the PSM program?Currently there have been 14 citations within this element. See the table below Employee Participation Specific Citations No. of Citations Employers shall develop a written plan of action regarding the implementation of the 9 employee participation required by this paragraph. Employers shall consult with employees and their representatives on the conduct and 1 development of process hazards analyses and on the development of the other elements of process safety management in this standard. Employers shall provide to employees and their representatives access to process 3 hazard analyses and to all other information required to be developed under this standard.Table 3.2 – Employee Participation Citations3.4 Process Safety Information UpgradeThis element is in the top four elements cited and in terms of cost. Process safety information is detail intensiveand documentation intensive. Although the standard essentially requires 100% accuracy, the reality is thatprocess and instrumentation drawings (P&IDs) and other PSI requirements may lag behind reality for manyreasons. Continue with any ongoing process safety information (PSI) upgrade efforts if already underwayduring the waiting period. Focus on specific citations later.If you receive process hazard analysis (PHA) citations, remember that a PHA redo cannot be started until thePSI is accurate. Schedule any upgrade or development efforts to precede the next PHA revalidation scheduledfor each production unit. This will improve the quality of the PHA efforts and can help them be performed moreefficiently.Use the updated process safety information to verify calculations threshold quantities for RMP compliancepurposes if indicated. Use Process and Instrumentation Drawings (P&IDs) rather than Process Flow Diagrams(PFDs) for these calculations to help ensure all piping and vessels are evaluated. Page 18 of 36
  19. 19. PSM Upgrade in Response to PSM NEPThe table below shows that P&IDs, relief systems, and documentation of recognized and generally acceptedgood engineering practices (RAGAGEP) have been vulnerable in inspections to date. PSI Specific Citations No. of Citations Process safety information. In accordance with the schedule set forth in 1 paragraph (e)(1) of this section, the employer shall complete a compilation of written process safety information before conducting any process hazard analysis required by the standard. The compilation of written process safety information is to enable the employer and the employees involved in operating the process to identify and understand the hazards posed by those processes involving highly hazardous chemicals. This process safety information shall include information pertaining to the hazards of the highly hazardous chemicals used or produced by the process, information pertaining to the technology of the process, and information pertaining to the equipment in the process. Process chemistry; 1 Safe upper and lower limits for such items as temperatures, pressures, flows or 2 compositions; and, An evaluation of the consequences of deviations, including those affecting the 1 safety and health of employees. Where the original technical information no longer exists, such information may 1 be developed in conjunction with the process hazard analysis in sufficient detail to support the analysis. Information pertaining to the equipment in the process shall include: 2 Materials of construction; 2 Piping and instrument diagrams (P&IDs); 16 Electrical classification; 5 Relief system design and design basis; 12 Design codes and standards employed 2 Safety systems (e.g. interlocks, detection or suppression systems). 1 The employer shall document that equipment complies with recognized and 21 generally accepted good engineering practices. For existing equipment designed and constructed in accordance with codes, 1 standards, or practices that are no longer in general use, the employer shall determine and document that the equipment is designed, maintained, inspected, tested, and operating in a safe manner.Table 3.3 – PSI Citations Page 19 of 36
  20. 20. PSM Upgrade in Response to PSM NEP3.5 Process Hazard Analysis UpgradeThis element needs to be evaluated for three primary aspects:  Is the PHA schedule on track?  Was the appropriate methodology used in the original PHA and any revalidations or baseline PHA re- performances?  Are there open PHA action items that are overdue?Ensure responsibility for PHA Action item closure is clear and documentation is complete. This provides anexcellent metric for evaluating PSM performance. The table below shows that facility siting, prompt closure ofPHA findings, and meeting your revalidation schedule are vulnerable areas in inspections to date. PHA Specific Citations No. of Citations The employer shall perform an initial process hazard analysis (hazard evaluation) 4 on processes covered by this standard. The process hazard analysis shall be appropriate to the complexity of the process and shall identify, evaluate, and control the hazards involved in the process. Employers shall determine and document the priority order for conducting process hazard analyses based on a rationale which includes such considerations as extent of the process hazards, number of potentially affected employees, age of the process, and operating history of the process. The process hazard analysis shall be conducted as soon as possible, but not later than the following schedule: The hazards of the process; 8 The identification of any previous incident which had a likely potential for 4 catastrophic consequences in the workplace; Engineering and administrative controls applicable to the hazards and their 7 interrelationships such as appropriate application of detection methodologies to provide early warning of releases. (Acceptable detection methods might include process monitoring and control instrumentation with alarms, and detection hardware such as hydrocarbon sensors.); Consequences of failure of engineering and administrative controls; 5 Facility siting; 14 Human factors; and 8 The employer shall establish a system to promptly address the teams findings 18 and recommendations; assure that the recommendations are resolved in a timely manner and that the resolution is documented; document what actions are to be taken; complete actions as soon as possible; develop a written schedule of when these actions are to be completed; communicate the actions to operating, maintenance and other employees whose work assignments are in the process and who may be affected by the recommendations or actions. At least every five (5) years after the completion of the initial process hazard 9 analysis, the process hazard analysis shall be updated and revalidated by a team meeting the requirements in paragraph (e)(4) of this section, to assure that the process hazard analysis is consistent with the current process. Employers shall retain process hazards analyses and updates or revalidations for 1 each process covered by this section, as well as the documented resolution of recommendations described in paragraph (e)(5) of this section for the life of the process.Table 3.4 – PHA Citations Page 20 of 36
  21. 21. PSM Upgrade in Response to PSM NEP3.6 Operating Procedures UpgradeOperating procedures are typically open to citations again because of the number of tasks that may need to beproceduralized. This element is in the top four cited by OSHA to date. Some things to consider for a generalupgrade of your operating procedures include:  Perform a job task analysis to the level of a job task listing to identify all the tasks that occur within each phase of operation. This will help ensure more complete capture of the work performed, better comply with PSM/RMP intent, help with the changing workforce issues all refineries are faced with as less experienced operators are hired due to retirement of experienced workers, and improve operational excellence in general through thorough documentation of operational requirements.  Consider adopting a standard operating procedure format across the entire refinery if one does not exist. Though not required by law, this helps the users access information from the documents in several ways.  Develop a procedure writing style guide to help refinery procedure writers use consistent terminology and writing techniques when developing new and revised procedures.  Train selected volunteer operators and technical staff on how to use the style guide, how to write in the new format, and general effective procedure writing techniques. This will help ensure the facility can maintain its operating, maintenance and safe work practice procedure quality and accuracy over the life of the refinery.  If self-analysis or citations indicate, consider initiating a project to upgrade the facility operating procedures as soon as practical.  If the PSM/RMP procedure program compliance plan document for the site will meet procedure program requirements, consider establishing a permanent means to ensure the annual certification that the operating procedures are current and accurate. When the management of change process and your procedure program are working in synchronization, this certification becomes a simple administrative task.The table below shows that emergency shutdown procedures, emergency operations procedures (also termedabnormal operating procedures), timely review and certification, and safe work practices (often overlooked asbeing considered operating procedures) are vulnerable areas in inspections to date. Operating Procedure Specific Citations No. of Citations The employer shall develop and implement written operating procedures that 7 provide clear instructions for safely conducting activities involved in each covered process consistent with the process safety information and shall address at least the following elements. Steps for each operating phase: 2 Normal operations; 6 Temporary operations; 3 Emergency shutdown including the conditions under which emergency shutdown 14 is required, and the assignment of shutdown responsibility to qualified operators to ensure that emergency shutdown is executed in a safe and timely manner. Emergency Operations; 9 Normal shutdown 1 Startup following a turnaround, or after an emergency shutdown. 3 Operating limits: 5 Page 21 of 36
  22. 22. PSM Upgrade in Response to PSM NEP Consequences of deviation 3 Steps required to correct or avoid deviation 3 Safety and health considerations 1 Properties of, and hazards presented by, the chemicals used in the process 1 Precautions necessary to prevent exposure, including engineering controls, 2 administrative controls, and personal protective equipment Any special or unique hazards 1 Safety systems and their functions. 2 The operating procedures shall be reviewed as often as necessary to assure that 9 they reflect current operating practice, including changes that result from changes in process chemicals, technology, and equipment, and changes to facilities. The employer shall certify annually that these operating procedures are current and accurate. The employer shall develop and implement safe work practices to provide for the 12 control of hazards during operations such as lockout/tagout; confined space entry; opening process equipment or piping; and control over entrance into a facility by maintenance, contractor, laboratory, or other support personnel. These safe work practices shall apply to employees and contractor employees.Table 3.5 – Operating Procedure Citations3.7 Training UpgradeRevisit the site’s current method of performing and documenting initial training and refresher training andconsider other approaches if indicated. Some suggestions:  Verify your process overview training is up to date with the process safety information and is designed in accordance with instructional systems design (ISD) methodology.  Take double credit for operating procedure training due to MOC related activities as refresher training and MOC training/inform;  Periodically poll workers to identify those procedures on which they would like training and provide it; and  Schedule planned periodic training within the 3-year window on the emergency operations or other critical procedures to help ensure conditioned response to emergency shutdown and abnormal operations. Page 22 of 36
  23. 23. PSM Upgrade in Response to PSM NEPThe table below shows that both initial and refresher training are vulnerable areas in inspections to date. Training Specific Citations No. of Citations Each employee presently involved in operating a process, and each employee 7 before being involved in operating a newly assigned process, shall be trained in an overview of the process and in the operating procedures as specified in paragraph (f) of this section. The training shall include emphasis on the specific safety and health hazards, emergency operations including shutdown, and safe work practices applicable to the employees job tasks. Refresher training. Refresher training shall be provided at least every three years, 4 and more often if necessary, to each employee involved in operating a process to assure that the employee understands and adheres to the current operating procedures of the process. The employer, in consultation with the employees involved in operating the process, shall determine the appropriate frequency of refresher training. Training documentation. The employer shall ascertain that each employee 1 involved in operating a process has received and understood the training required by this paragraph. The employer shall prepare a record which contains the identity of the employee, the date of training, and the means used to verify that the employee understood the training.Table 3.6 – Training Citations3.8 Contractors UpgradeEvaluate your current contractor on-boarding and performance auditing methods (for both safety and workquality). Consider developing safe work practices or other documents to capture the approach.The table below shows that contractor training on process hazards and controls for contractor access arevulnerable areas in inspections to date. Contractor Specific Citations No. of Citations The employer, when selecting a contractor, shall obtain and evaluate information 1 regarding the contract employers safety performance and programs. The employer shall inform contract employers of the known potential fire, 3 explosion, or toxic release hazards related to the contractors work and the process. The employer shall develop and implement safe work practices consistent with 4 paragraph (f)(4) of this section, to control the entrance, presence and exit of contract employers and contract employees in covered process areas. The employer shall periodically evaluate the performance of contract employers 1 in fulfilling their obligations as specified in paragraph (h)(3) of this section. The employer shall maintain a contract employee injury and illness log related to 2 the contractors work in process areas.Table 3.7 – Contractor Citations Page 23 of 36
  24. 24. PSM Upgrade in Response to PSM NEP3.9 Pre-startup Safety Review RecommendationAudit a random sampling of management of change activities requiring a pre-startup safety review (PSSR).Evaluate if the basics have been met and chart your upgrade to correct the deficiencies found.The table below shows that procedures, MOC Process hazard analyses, and training are the vulnerable areas ininspections to date. PSSR Specific Citations No. of Citations Safety, operating, maintenance, and emergency procedures are in place and are 1 adequate; For new facilities, a process hazard analysis has been performed and 2 recommendations have been resolved or implemented before startup; and modified facilities meet the requirements contained in management of change, paragraph (l). Training of each employee involved in operating a process has been completed. 1Table 3.8 – PSSR Citations3.10 Mechanical Integrity UpgradeIn this one paragraph, the PSM standard describes one of the more complex elements of process safetymanagement. Some sites consider it a sub-management system of its own due to its complexity. Mechanicalintegrity is also an argument for the business case of implementing high quality PSM as it improves plantreliability and reduces unplanned outages. Some considerations for upgrade include:  Consider reviewing your total mechanical integrity system to determine if it can be simplified. For example, some requirements of mechanical integrity can be met by reference in the PSM/RMP compliance plan documents to existing refinery software tools designed to plan, schedule, and document maintenance activities, inspections, tests, and quality assurance methods.  For the task level mechanical integrity procedures, consider adopting a user-friendly format and gradually revising these documents to the new format as the need arises from management of change activities or when employee recommendations are incorporated. Maintenance procedure needs due to management of change are often overlooked.The table below shows that written procedures, inspection and testing, and correcting deficiencies are thevulnerable areas in inspections to date. Page 24 of 36
  25. 25. PSM Upgrade in Response to PSM NEP Mechanical Integrity Specific Citations No. of Citations Written procedures. The employer shall establish and implement written 17 procedures to maintain the on-going integrity of process equipment. Training for process maintenance activities. The employer shall train each 1 employee involved in maintaining the on-going integrity of process equipment in an overview of that process and its hazards and in the procedures applicable to the employees job tasks to assure that the employee can perform the job tasks in a safe manner. Inspections and tests shall be performed on process equipment. 13 Inspection and testing procedures shall follow recognized and generally accepted 11 good engineering practices. The frequency of inspections and tests of process equipment shall be consistent 9 with applicable manufacturers recommendations and good engineering practices, and more frequently if determined to be necessary by prior operating experience. The employer shall document each inspection and test that has been performed 9 on process equipment. The documentation shall identify the date of the inspection or test, the name of the person who performed the inspection or test, the serial number or other identifier of the equipment on which the inspection or test was performed, a description of the inspection or test performed, and the results of the inspection or test. Equipment deficiencies. The employer shall correct deficiencies in equipment 18 that are outside acceptable limits (defined by the process safety information in paragraph (d) of this section) before further use or in a safe and timely manner when necessary means are taken to assure safe operation. Appropriate checks and inspections shall be performed to assure that equipment 4 is installed properly and consistent with design specifications and the manufacturers instructions. The employer shall assure that maintenance materials, spare parts and equipment 2 are suitable for the process application for which they will be used.Table 3.9 – Mechanical Integrity Citations Page 25 of 36
  26. 26. PSM Upgrade in Response to PSM NEP3.11 Hot Work Permit UpgradeAs the hot work element of PSM essentially reiterates the applicability of the fire prevention and protectionrequirements in an existing standard 29 CFR 1910.252(a), one might think it would not be vulnerable in an NEPinspection. But is has proven to be so.Things to consider for evaluating the need to upgrade this element of your PSM program are:  Evaluate feedback from the users of the refinery safe work practice covering hot work (it may be addressed in your Safe Work Permit Policy and Instructions document) and revise the document and any tracking software as appropriate.  Check that safety audits show both refinery employees and contractors are following the policy. If not, management must take steps to enforce this basic safety practice.The table below shows that the details of the permit are the vulnerable areas in inspections to date. Hot Work Permit Specific Citations No. of Citations The permit shall document that the fire prevention and protection requirements in 2 29 CFR 1910.252(a) have been implemented prior to beginning the hot work operations; it shall indicate the date(s) authorized for hot work; and identify the object on which hot work is to be performed. The permit shall be kept on file until completion of the hot work operations.Table 3.10 – Hot Work Permit Citations Page 26 of 36
  27. 27. PSM Upgrade in Response to PSM NEP3.12 Management of Change UpgradeManagement of change (MOC) in combination with PSSR forms the engine that is intended to keep the entireprocess safety management program up-to-date and relevant to your facility’s success.  Evaluate any electronic management of change work process your site may use. Do users understand it? Does it encourage the communication essential to good MOC – or does it allow users to click a box and move on without thorough evaluation of the change’s hazards? Please note that paper systems are fine if that approach fits your site culture and resources. They actually have some advantages over electronic MOC systems when thoroughly implemented.  Revise the refinery PSM/RMP compliance plan management of change document to accurately reflect changes to your MOC system.  Randomly sample and audit past MOC packages to verify the system is working.  If the system is broken, management must direct resources at correcting deficiencies and training the users.  Consider the value of adding management of change of personnel to the AEI management of change work process if it is not addressed. This is not a regulatory requirement but has been recognized industry-wide as a good practice. Many issues related to PSM quality arise when key personnel leave the company or change positions.The table below shows that having an established written MOC system and updating the process safetyinformation for a change are the more vulnerable areas in inspections to date. Management of Change Specific Citations No. of Citations The employer shall establish and implement written procedures to manage 15 changes (except for "replacements in kind") to process chemicals, technology, equipment, and procedures; and, changes to facilities that affect a covered process. The procedures shall assure that the following considerations are addressed prior 1 to any change: Impact of change on safety and health 2 Modifications to operating procedures; 2 Necessary time period for the change; and, 2 Authorization requirements for the proposed change. 2 If a change covered by this paragraph results in a change in the process safety 7 information required by paragraph (d) of this section, such information shall be updated accordingly. If a change covered by this paragraph results in a change in the operating 2 procedures or practices required by paragraph (f) of this section, such procedures or practices shall be updated accordingly.Table 3.11 – Management of Change Citations Page 27 of 36
  28. 28. PSM Upgrade in Response to PSM NEP3.13 Incident Investigation UpgradeThe fact that this element appears in the PSM standard shows that OSHA understands any management systemis open to failure. The prime goal of this element is to help ensure facilities learn from their failures and use thatlearning to improve process safety performance.Some things to consider for upgrading this element are:  Evaluate the site’s existing incident investigation element documents, both the PSM/RMP compliance plan administrative procedure and any safe work practice documents that describe the specific work process, for any revision needs and updates.  If you use an electronic incident investigation reporting tool, ensure it meshes with the work process  Consider tracking categories of incidents (especially PSM incidents) so that analysis of trends is made simpler. This demands a definition for your site of - what constitutes a PSM incident? Some companies use the potential of an incident to release a threshold quantity (TQ) of a hazardous chemical or flammable. Others categorize any breakdown of the PSM program work processes as a PSM incident.  Audit your incident investigation reports for compliance with your program description.The table below shows that identifying PSM incidents for investigation, the details of a thorough investigation,and prompt follow up of action items and documentation of closure are the more vulnerable areas in inspectionsto date. Incident Investigation Specific Citations No. of Citations The employer shall investigate each incident which resulted in, or could 7 reasonably have resulted in a catastrophic release of highly hazardous chemical in the workplace. An incident investigation shall be initiated as promptly as possible, but not later 2 than 48 hours following the incident. An incident investigation team shall be established and consist of at least one 4 person knowledgeable in the process involved, including a contract employee if the incident involved work of the contractor, and other persons with appropriate knowledge and experience to thoroughly investigate and analyze the incident. A report shall be prepared at the conclusion of the investigation which includes at 3 a minimum: Date investigation began. 3 The factors that contributed to the incident; and, 5 Any recommendations resulting from the investigation. 2 The employer shall establish a system to promptly address and resolve the 10 incident report findings and recommendations. Resolutions and corrective actions shall be documented. The report shall be reviewed with all affected personnel whose job tasks are 2 relevant to the incident findings including contract employees where applicable.Table 3.12 – Incident Investigation Citations Page 28 of 36
  29. 29. PSM Upgrade in Response to PSM NEP3.14 Emergency Planning and Response ProgramThe emergency planning and response element also reiterates the applicability of existing regulations:  29 CFR 1910.38 (a) – Emergency Action Plans and  29 CFR 1910.120 (a), (p), and q) - Hazardous waste operations and emergency response.A site may assume they have implemented these requirements, but the data show that there are still citationswithin the industry. Many facilities affected by these regulations have chosen to use the integrated contingencyplan (ICP) approach – also called the one plan approach - to their various emergency response regulatory needs.This method uses one combined program to comply with what may be overlapping areas of several similarrequirements – for example, spill prevention control and countermeasure and the oil pollution act of 1990 (OPA90) facility response plan.Some things to consider for an upgrade of this element are:  Audit your emergency response plan against all of your related regulatory requirements to ensure they are addressed.  Audit your record of drills, emergency responses, and critiques to evaluate whether the plan is being implemented appropriately.  Revise the plan as needed and train refinery staff on any changes to the emergency response procedures that they are expected to perform in their job assignment  If not already using the ICP approach, evaluate the benefits of doing so.  Communicate with the local emergency planning committee to coordinate the site plan with the community emergency response plan and document this activity.The table below shows that simply having a plan that meets the regulation is what the OSHA teams are finding. Emergency Planning and Response Specific Citations No. of Citations Emergency planning and response. The employer shall establish and implement 9 an emergency action plan for the entire plant in accordance with the provisions of 29 CFR 1910.38. In addition, the emergency action plan shall include procedures for handling small releases. Employers covered under this standard may also be subject to the hazardous waste and emergency response provisions contained in 29 CFR 1910.120 (a), (p) and (q).Table 3.13 – Emergency Planning and Response Citations3.15 Compliance Audits UpgradeCompliance audits are a way to perform a periodic self-check of PSM performance. The data from inspectionsto date in the table below shows that the industry has not been effective at self-analysis in general. The currentcitations essentially sum up that a large percentage of refineries either missed the three year dates for theiraudits, did not do the audits, or did not act upon and document closure of action items resulting from their selfaudit. Page 29 of 36
  30. 30. PSM Upgrade in Response to PSM NEPSome considerations for a compliance audits element upgrade are:  Identify any outstanding action items from past audits and work to close them at the earliest possible opportunity.  Plan for you next scheduled compliance audit by selecting who will perform it: o First party – refinery personnel o Second party – corporate personnel or sister refinery personnel if your company has several PSM covered facilities (or a combination of both categories of personnel ) o Third party – an outside firm – typically a PSM consulting company or an engineering firm  If using first or second party personnel from your company, train them in the basics of process safety, train them in your PSM administrative procedures, train them in the use of an established internal audit protocol, and encourage sharing the learning from each completed compliance audit with any other PSM covered sites within your organization.  Track each compliance audit recommendation against its due date and complete the actions in a timely fashion. Compliance Audits Specific Citations No. of Citations Employers shall certify that they have evaluated compliance with the provisions 12 of this section at least every three years to verify that the procedures and practices developed under the standard are adequate and are being followed. The employer shall promptly determine and document an appropriate response to 12 each of the findings of the compliance audit, and document that deficiencies have been corrected.Table 3.14 – Compliance Audits Citations3.16 Trade SecretsThis element is seldom critical in a refinery, but it is a good practice to have a method in place. It can be verystraightforward if trade secrets are not an immediate concern. However, if it is possible a site may useproprietary chemicals or processes in the future, this preparation may serve in compliance with the processsafety management standard. The OSHA PSM NEP effort has had no trade secrets citations to date.3.17 Planning a PSM Implementation Upgrade ProjectFor the clarity of the paper, we show a three-year template for the schedule. A refinery may choose to show aschedule based upon their actual 5-year PHA revalidation schedule. The suggestions above and other line itemsprovide a path to consider for a total PSM implementation upgrade after an NEP inspections. Page 30 of 36
  31. 31. PSM Upgrade in Response to PSM NEPFigure 3.1 – A Sample PSM Implementation Upgrade Gantt Chart – page 1 Page 31 of 36
  32. 32. PSM Upgrade in Response to PSM NEPFigure 3.1 – A Sample PSM Implementation Upgrade Gantt Chart – page 2 Page 32 of 36
  33. 33. PSM Upgrade in Response to PSM NEP3.18 ORGANIZATIONAL CULTURE: A Necessary Commitment to Operational DisciplineOne aspect of the best performing high reliability organizations (HRO) - such as refineries, chemical plants, andnuclear and fossil power plants – is a naturally high level of operational discipline that pervades individual,team and organizational behavior. This means that these high performers have essentially created, eithernaturally or by design, a values-based management style. An organizational culture displays a values-basedmanagement style acts in ways that characterize a shared set of values and principles. These values are notdirectly measurable, but are perceived as important by all.In a world of change – changing technology, market conditions, regulations, and political climate to name a few- the characteristics of operational discipline are always valued whenever displayed in the behaviors of:  Organizations  Teams  IndividualsThat sense of shared values throughout an organization is called operational discipline. What is operationaldiscipline? The simplest definition is: Operational Discipline: a consistent pattern of behavioral choices that supports successWhen a high level of operational discipline is realized throughout an organization, all stakeholders benefit:shareholders, management, employees, and the public. There are fifteen characteristics of operational discipline.These are the things we unconsciously seek in others (including teams and organizations) during anyinteraction. These are also the things our co-workers and company seek in us.People, teams, and companies display a high level of operational discipline when they:  Hold a sense of personal responsibility for their actions.  Honor commitments to themselves and others.  Seek outcome-based results rather than activity-based results.  View problem, setbacks, and mistakes as opportunities for improvement.  Use time management techniques in achieving goals.  Respect and attempt to understand others ideas and worldviews.  Seek fairness in all exchanges.  Share recognition with others.  Value their life & health & the lives & health of co-workers & the community.  Use active, two-way communication so information is understandable to all parties.  Seek to perform the duties & tasks required by their position.  Desire to use informational, capital, and human resources efficiently.  Assume a leadership role when needed, and conversely, follow when appropriate.  Use existing systems to achieve goals & seek to improve the systems when needed.  Trust that others are capable of a high level of operational discipline & treat them accordingly. Page 33 of 36
  34. 34. PSM Upgrade in Response to PSM NEPBusiness Excellence - The Peak  Business excellence is made up of a mixture of both perceptual and quantitative things. The way a company is perceived in regard to worker satisfaction, environmentally sustainable and other perceptions combine with the bottom line of profitability and share price performance. An organization may achieve business excellence – but it is a temporal condition – much like self-actualization. It is very difficult to maintain.Operational Excellence - The Path  Operational excellence is made up of those tangible, quantitative, business critical things that, when done at close to 100%, make your organization most effective. These are your procedures (of all types), business metrics, key performance indicators (KPIs). Those day-to-day things that define where we live in our business life. When you streamline an organization’s operational excellence related tasks, it is more likely to succeed.Operational Discipline – The Power  Operational discipline is the power to achieve operational excellence and stage an organization to be considered an example of business excellence. It is made up of those cultural, qualitative, perceptual, un-measureable things that we sometimes fail to recognize as important. Perfection is not our goal for operational discipline, merely consistency in our display. Displaying a high level of operational discipline requires us to learn from our mistakes. o These are the characteristics that help high performing operations maintain that level of performance. o These are the characteristics that help any organization persevere through hardships – such as market issues, natural disasters, catastrophic incidents. o These are the characteristics that help maintain a rigorous PSM system. o These are the characteristics that need to be displayed in the midst of a response to a fire, toxic release, or explosion.The refining industry PSM NEP and the upcoming chemical industry PSM NEP will both provide companieswith an opportunity to display a high level of operational discipline in their preparation, inspection supporttasks, and in their response activities. Page 34 of 36
  35. 35. PSM Upgrade in Response to PSM NEP4. Conclusion The refining industry will have a directed opportunity to improve overall performance in process safety due tothe OSHA refinery process safety management national emphasis program. Leveraging this opportunityrequires a pervasive organizational culture that views personnel and process safety as second nature – aconditioned first response to address for any issue related to refinery operations or maintenance. High reliabilityorganizations whose upper management values long term growth and more predictable physical plant reliabilitywill embrace the chance to use the effort involved in a PSM program implementation based upgrade to bolsterthese benefits.The cultural level of operational discipline at the corporation, team, and individual level can better support ahigh level of operational excellence – doing those critical measurable things that support success – when aprogram is detailed and monitored. Business excellence can be attained when a company values a holistic senseof what comprises quality.The following figure graphically represents this view. OSHA inspectors and management have gained a newlevel of process safety management expertise based upon their roles in the NEP. This can only enhance OSHA’sability to help industry protect the workforce from preventable risk. If refinery and chemical plant managementadopt this view, the industry’s level of catastrophic risk prevention will increase. Catastrophic Incident Prevention Safety & Quality Health Must Profitability Include Operational Discipline Environmental Responsibility Operating Excellence Business ExcellenceFigure 4.1 The Holistic View of Quality Page 35 of 36
  36. 36. PSM Upgrade in Response to PSM NEPReferences:The Report of the BP U.S. Refineries Independent Safety Review Panel, January 2007Department of Labor (OSHA), 29 CFR part 1910.119, Process Safety Management of Highly HazardousChemicals, 1992Department of Labor (OSHA), 29 CFR 1910.252(a), Welding, Cutting, and Brazing, Fire Prevention andProtectionCPL 03-00-004, Petroleum Refinery Process Safety Management National Emphasis Program, 6/7/2007United States Department of Labor, Occupational Health and Safety Administration, Inspections within Industrydatabase, (accessed February 1, 2009)Environmental Protection Agency (EPA), 40 CFR Part 68, Risk Management Programs for ChemicalAccidental Release Prevention, 1996Discovering Operational Discipline, © AntiEntropics, Inc. HRD Press, Amherst, Massachusetts, Robert Walter,2002.Integrated Management Systems and Safety Culture: Operational Discipline as the Foundation ofManufacturing Excellence. Robert Walter, American Institute of Chemical Engineers/Center for ChemicalProcess Safety, 2005 Spring National Meeting, Process Plant Safety Symposium, 2004The Business Case for Process Safety, American Institute of Chemical Engineers/Center for Chemical ProcessSafety, 2003Practical Compliance with the EPA Risk Management Program, American Institute of ChemicalEngineers/Center for Chemical Process Safety, Robert Walter, 1999Local Emergency Planning Committee Guidebook: Understanding the EPA Risk Management Program Rule,American Institute of Chemical Engineers/Center for Chemical Process Safety, Robert Walter, 1998About the Authors:Mr. Robert Walter ( is president of AntiEntropics, Inc. ( aperformance enhancement consulting firm specializing in OSHA, EPA, DOT, and ISO management systemdevelopment and upgrade as well as managerial competency assessment and training.Mr. Richard Foottit is a senior OSHA process safety management and EPA risk management programconsultant with AntiEntropics and was the PSM coordinator for the Conoco Billings Refinery( Brian Nelson, CSP is the PSM Manager for the Suncor Energy USA Commerce City Refinery( Page 36 of 36