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Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Developing a Robust PSM
Framework at DuPont
David Guss
PSM Solution Architect, EMEA
DuPont Sustainable Solutions
February 2013, Gothenburg
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 2
Objective
To provide an understanding of the DuPont
Process Safety Management System and
why the system works.
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 3
Introduction ā€“ David Guss
Chartered Electrical & Mechanical Engineer
Experienced Operations Leader
28 years in the industry
Behavioural and Process Safety Consultant for 10 years in DSS
Committed to helping organisations and facilities achieve zero
process safety incidents and to improve viability and sustainability
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 4
Safety is a DuPont Core Value
Core values:
ļƒ˜ Safety & Health
ļƒ˜ Environmental Stewardship
ļƒ˜ Ethics
ļƒ˜ Respect for people
$38 Billion revenue in 2011, six business
segments covering markets such as food,
agriculture, nutrition, transportation, energy,
construction
Over 175 facilities around the world
Worldwide reputation for industrial safety
DuPont applies a single Process Safety
Management system worldwide
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 5
1. Management Leadership &
Commitment
How DuPont Manages Safety and Risk - Step 1
ā€¢ Establish Policy
ā€¢ Commit Resources
ā€¢ Provide for and Encourage
Employee Involvement
ā€¢ Establish Clear Accountability
ā€¢ Verify Compliance
ā€¢ Participate Personally
Management Leadership and Commitment - Responsibilities
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 6
Management Leadership and Commitment is
Essential
ā€œSafety is a line management
responsibility. If we canā€™t do it safely -
we wonā€™t do it at allā€
E.I. DuPont (circa 1817)
ā€œManagement must demonstrate their commitment by articulating a
clear message on the importance of process safety and matching that
message both with the policies they adopt and the actions they take.ā€
Baker Panel Report (January 2007)
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 7
Leadership Accountability
Leaders must have a clear vision of the ultimate goal of the
companyā€™s process safety management efforts
Leaders must set the goals and strategic objectives
Leaders delegate specific responsibilities and tasks to individuals
in the organization
Leaders must hold their line organization accountable for
implementation and results
Leaders must recognize and reward accomplishments
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 8
2. Build a Safety Culture
How DuPont Manages Safety and Risk - Step 2
1. Management Leadership &
Commitment
Build a Strong Safety Culture ā€“ The Goal is Zero
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 9
2. Build a Safety Culture
How DuPont Manages Safety and Risk - Step 3
1. Management Leadership &
Commitment
Develop & Implement a Process Safety Management Program
3. Implement
PSM Program
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 10
2. Build a Safety Culture
How DuPont Manages Safety and Risk ā€“ Step 4
1. Management Leadership &
Commitment
Deliver Excellence Through Operational Discipline
3. Implement
PSM Program
4.
OD
Everyone doing the job
rightā€¦every time
A strong culture of following
procedures
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 11
Operational Discipline - Characteristics
OPERATIONAL
EXCELLENCE
Leadership
by Example
Excellent
Housekeeping
Employee
Involvement
PSRM
Resources
Organizational
Pride
No
Shortcuts
Active
Communications
Practices
=
Procedures
Up-To-Date
Documentation
Strong
Teamwork
Shared
Values
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 12
Performance is a function of the Management
Systems and the Level of Execution
State of
Implementation
=
State of
Operational
Effectiveness
State of
Safety
Standards
Safety
Management
Standards
Operational
Discipline
Operational
Effectiveness
x
60%
30%
18%
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 13
Why the Model Works - A single Governance
Process
Common corporate metrics
Common risk classification protocol
Common audit protocol
Common incident investigation /
classification approach
Continuously upgraded via global
networks
A common goal of Zero Operational
Incidents
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 14
DuPont PSM Governance
Line Management
Ultimately accountable for safety
and loss prevention performance
Starts with the Board of
Directors and the CEO
Business and Operations
Leaders are judged based on
adherence to core values.
Safety is #1
Safety becomes part of every
employees condition of
employment; our first core value
A common goal of zero incidents
Corporate Competency
EVP Sustainability reports to
CEO
PSM Competency Leader
provides SME and guidance to
Line Management
Supported by extensive networks
of practicing SMEā€™s
Establishes and maintains current
~15 Corporate PSM Standards
Oversees 2nd and 3rd Party
Auditing Processes. Report
results to Line Management
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 15
Used in wide range of DuPont
operations
Currently in use in industries as
diverse as Chemicals, Upstream
and Downstream Oil & Gas,
Power Generation, Food
Processing, Mining (Surface and
Sub-surface), Metals Processing
(Alumina, Steel, Gold, Nickel,
Coal) and Pipelines/Storage.
Also, is being incorporated in
Major Projects processes that
construct these same facilities
Why the Model Works ā€“ Flexible & Adaptable to
Many Processes & Industries
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 16
Resource allocation &
prioritization
Capital projects planning and
execution
Personnel succession planning
Performance management
Training and development
Contractor selection / retention
Acquisition due diligence
Why the Model Works ā€“ Integrated Into All
Business Processes
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 17
The PSM Dilemma: Behavioural vs. Technical
Unsafe Acts and Conditions
First Aid Incidents
Major Incident
Fatality
Quasi incidente
Catastrofe
Incidente con
grosse perdite
Incidente con
perdite minori
Workplace Safety
People risks (slips, trips, falls,
working at heights, PPE mis-
use etc.)
Unsafe Acts and Conditions
First Aid Incidents
Major Incident
Fatality
Near Miss
Catastrophic
Incident
Major Technical
Incident
Minor Loss Incident
Process Safety Management
Man-Machine Interface risks
(loading/unloading, product
changes, Control room etcā€¦)
Integrity Risks (Mech. Int.
QA, interlock, vessel, relief
valves etc.)
Pro-active
Reactive
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 18
Process Safety Management Leadership Model
Trained , Knowledgeable, Capable People in all roles
Adequate resources
Financial Support
Knowledge Management
Cat A PSM Incidents: Goal zero
Cat C PSM Incidents/Near misses/
Key Learnings
Metrics & Recommendations
from Incidents , PHA & Audits
Leadership
Safety Culture, Commitment, Accountability, Resources, Involvement
Foundational
Cat B PSM Incidents: Goal zero
Lagging
Indicators
Leading
Indicators
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 19
PSM From Beginning to End of a Facility
Contractors
Incident
Investigation
Revalidation
PHAā€™s
FEL-1
Screening
PHA
Quality
Assurance
Shutdown /
Mothballed
Mechanical
Integrity
MOC-Personnel
PSI & PSM
Critical
Equipment
Procedures
& Training
PSSR MOC-
T & F
Emergency
Planning &
Response
PSM
Systems
Auditing
Continuous
Improvement /
Metrics
Final PHA
START-UP
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 20
Process Safety Information (PSI)
PRINCIPLE
The Process Safety Information package provides a
description of the process or operation. It provides the
foundation for identifying and understanding the risks
involved - the first steps in the process safety management
effort. The PSI package generally consists of three parts:
Hazards of materials
Process design basis
Equipment design basis
This step also designates which equipment is PSM Critical
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 21
Process Hazard Analysis (PHA)
PRINCIPLE
Process risk analysis is used to methodically identify,
evaluate, and develop methods to control significant risk
in the process.
APPLICATION
Existing Installations
New installations
Decommissioning
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 22
PHA Implementation Activities
1. Planning and Preparing
2. Hazards Identification
3. Process Hazards Evaluation
4. Consequence Analysis
5. Human Factors
6. Facility Siting
7. Risk Assessment
8. Recommendations
9. Documentation of Recommendations
10. Management Response
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 23
PHA Methodologies
Both Qualitative and Quantitative
Use alone or in combination, depending on individual PHA
Qualitative techniques
What If / Checklist
Failure Mode and Effect Analysis (FMEA)
Hazard and Operability Study (HAZOP)
Structured What / If (Combines What / If with HAZOP)
Quantitative techniques
Fault Tree Analysis (FTA)
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 24
Overall Risk Classification
6 III II I I I I
5 III III II I I I
4 IV III III II I I
3 IV IV III III II I
2 IV IV IV III III II
1 IV IV IV IV III III
C1 C2 C3 C4 C5 C6
Likelihood
Category
Increasing
Likelihood
Consequence Category
Increasing Consequence
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 25
Risk Responses
I
II
III
IV
Extreme Risk and Intolerable. Significant and urgent action
required; risk to be reduced to at least Level III. Sr. V.P. is
informed and tracks mitigation/controls implementation.
High Risk and Undesirable. Controls are required to reduce risk
to at least Level III. Responsible V.P. is informed and tracks
mitigation/controls implementation.
Moderate Risk and Tolerable With Controls. Management
monitors/audits controls to make sure they are in place and
effective. Additional action may be required.
Low Risk and Tolerable As Is. No mitigation is required.
Monitoring to insure situation does not change is expected of
management.
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 26
Auditing
PRINCIPLE
Audits are important tools in the establishment, measurement,
maintenance, and continuous improvement of PSM
performance. Audits compare performance versus established
standards.
Audits done at 1st Party and Second Party Level
Audits are scored and reported to corporate management
Recommendations are tracked to closure
Management held accountable for audit performance & action closure
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 27
Features of a Well-Implemented PSM System
PSM is integrated into the other business processes
There is a full understanding of all process hazards
Everyoneā€™s roles and responsibilities are well defined and
executed well
Sufficient commitment of resources; people and money
Facility is designed, operated, and maintained at a world-class
level
Continuous improvement is achieved via the use of metrics, audits
and ever strengthening standards
A goal of zero process incidents is pursued by all
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 28
Avoidance of catastrophic events that injure people, facilities,
business and the environment
Improved sustainability performance
Improved productivity and reduced costs through reduced
downtime; fewer incidents
Sustained ā€œright to operate,ā€ as granted by the community,
governments and other stakeholders
Improved employee morale
Improved credibility in the investment community
Risk Management Program Benefits
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 29
DuPont Process Incident Performance
Number of PSI's vs. % Audit Scores
0
20
40
60
80
100
120
140
160
180
200
1
9
9
2
1
9
9
3
1
9
9
4
1
9
9
5
1
9
9
6
1
9
9
7
1
9
9
8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
#
of
PSI's
50
55
60
65
70
75
80
85
90
95
100
%
Audit
Scores
# of PSI's Audit Scores
Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or
ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.
Feb-13
Developing a Robust PSM Framework at DuPont 30
Conclusion
Successful leaders identify, evaluate and mitigate operational risks
through:
Implementing comprehensive, integrated management systems
Fostering a positive, trusting and open culture
Pursuing and achieving the goal of zero significant operational
incidents
ā€œIt is imperative that leadership set the ā€˜tone at the topā€™ of
the organization and establish appropriate expectations
regarding process safety performance.ā€
Baker Panel Report (January 2007)
ips-david-guss-dupont-february-20134.pdf

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ips-david-guss-dupont-february-20134.pdf

  • 1. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Developing a Robust PSM Framework at DuPont David Guss PSM Solution Architect, EMEA DuPont Sustainable Solutions February 2013, Gothenburg
  • 2. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 2 Objective To provide an understanding of the DuPont Process Safety Management System and why the system works.
  • 3. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 3 Introduction ā€“ David Guss Chartered Electrical & Mechanical Engineer Experienced Operations Leader 28 years in the industry Behavioural and Process Safety Consultant for 10 years in DSS Committed to helping organisations and facilities achieve zero process safety incidents and to improve viability and sustainability
  • 4. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 4 Safety is a DuPont Core Value Core values: ļƒ˜ Safety & Health ļƒ˜ Environmental Stewardship ļƒ˜ Ethics ļƒ˜ Respect for people $38 Billion revenue in 2011, six business segments covering markets such as food, agriculture, nutrition, transportation, energy, construction Over 175 facilities around the world Worldwide reputation for industrial safety DuPont applies a single Process Safety Management system worldwide
  • 5. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 5 1. Management Leadership & Commitment How DuPont Manages Safety and Risk - Step 1 ā€¢ Establish Policy ā€¢ Commit Resources ā€¢ Provide for and Encourage Employee Involvement ā€¢ Establish Clear Accountability ā€¢ Verify Compliance ā€¢ Participate Personally Management Leadership and Commitment - Responsibilities
  • 6. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 6 Management Leadership and Commitment is Essential ā€œSafety is a line management responsibility. If we canā€™t do it safely - we wonā€™t do it at allā€ E.I. DuPont (circa 1817) ā€œManagement must demonstrate their commitment by articulating a clear message on the importance of process safety and matching that message both with the policies they adopt and the actions they take.ā€ Baker Panel Report (January 2007)
  • 7. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 7 Leadership Accountability Leaders must have a clear vision of the ultimate goal of the companyā€™s process safety management efforts Leaders must set the goals and strategic objectives Leaders delegate specific responsibilities and tasks to individuals in the organization Leaders must hold their line organization accountable for implementation and results Leaders must recognize and reward accomplishments
  • 8. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 8 2. Build a Safety Culture How DuPont Manages Safety and Risk - Step 2 1. Management Leadership & Commitment Build a Strong Safety Culture ā€“ The Goal is Zero
  • 9. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 9 2. Build a Safety Culture How DuPont Manages Safety and Risk - Step 3 1. Management Leadership & Commitment Develop & Implement a Process Safety Management Program 3. Implement PSM Program
  • 10. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 10 2. Build a Safety Culture How DuPont Manages Safety and Risk ā€“ Step 4 1. Management Leadership & Commitment Deliver Excellence Through Operational Discipline 3. Implement PSM Program 4. OD Everyone doing the job rightā€¦every time A strong culture of following procedures
  • 11. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 11 Operational Discipline - Characteristics OPERATIONAL EXCELLENCE Leadership by Example Excellent Housekeeping Employee Involvement PSRM Resources Organizational Pride No Shortcuts Active Communications Practices = Procedures Up-To-Date Documentation Strong Teamwork Shared Values
  • 12. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 12 Performance is a function of the Management Systems and the Level of Execution State of Implementation = State of Operational Effectiveness State of Safety Standards Safety Management Standards Operational Discipline Operational Effectiveness x 60% 30% 18%
  • 13. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 13 Why the Model Works - A single Governance Process Common corporate metrics Common risk classification protocol Common audit protocol Common incident investigation / classification approach Continuously upgraded via global networks A common goal of Zero Operational Incidents
  • 14. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 14 DuPont PSM Governance Line Management Ultimately accountable for safety and loss prevention performance Starts with the Board of Directors and the CEO Business and Operations Leaders are judged based on adherence to core values. Safety is #1 Safety becomes part of every employees condition of employment; our first core value A common goal of zero incidents Corporate Competency EVP Sustainability reports to CEO PSM Competency Leader provides SME and guidance to Line Management Supported by extensive networks of practicing SMEā€™s Establishes and maintains current ~15 Corporate PSM Standards Oversees 2nd and 3rd Party Auditing Processes. Report results to Line Management
  • 15. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 15 Used in wide range of DuPont operations Currently in use in industries as diverse as Chemicals, Upstream and Downstream Oil & Gas, Power Generation, Food Processing, Mining (Surface and Sub-surface), Metals Processing (Alumina, Steel, Gold, Nickel, Coal) and Pipelines/Storage. Also, is being incorporated in Major Projects processes that construct these same facilities Why the Model Works ā€“ Flexible & Adaptable to Many Processes & Industries
  • 16. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 16 Resource allocation & prioritization Capital projects planning and execution Personnel succession planning Performance management Training and development Contractor selection / retention Acquisition due diligence Why the Model Works ā€“ Integrated Into All Business Processes
  • 17. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 17 The PSM Dilemma: Behavioural vs. Technical Unsafe Acts and Conditions First Aid Incidents Major Incident Fatality Quasi incidente Catastrofe Incidente con grosse perdite Incidente con perdite minori Workplace Safety People risks (slips, trips, falls, working at heights, PPE mis- use etc.) Unsafe Acts and Conditions First Aid Incidents Major Incident Fatality Near Miss Catastrophic Incident Major Technical Incident Minor Loss Incident Process Safety Management Man-Machine Interface risks (loading/unloading, product changes, Control room etcā€¦) Integrity Risks (Mech. Int. QA, interlock, vessel, relief valves etc.) Pro-active Reactive
  • 18. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 18 Process Safety Management Leadership Model Trained , Knowledgeable, Capable People in all roles Adequate resources Financial Support Knowledge Management Cat A PSM Incidents: Goal zero Cat C PSM Incidents/Near misses/ Key Learnings Metrics & Recommendations from Incidents , PHA & Audits Leadership Safety Culture, Commitment, Accountability, Resources, Involvement Foundational Cat B PSM Incidents: Goal zero Lagging Indicators Leading Indicators
  • 19. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 19 PSM From Beginning to End of a Facility Contractors Incident Investigation Revalidation PHAā€™s FEL-1 Screening PHA Quality Assurance Shutdown / Mothballed Mechanical Integrity MOC-Personnel PSI & PSM Critical Equipment Procedures & Training PSSR MOC- T & F Emergency Planning & Response PSM Systems Auditing Continuous Improvement / Metrics Final PHA START-UP
  • 20. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 20 Process Safety Information (PSI) PRINCIPLE The Process Safety Information package provides a description of the process or operation. It provides the foundation for identifying and understanding the risks involved - the first steps in the process safety management effort. The PSI package generally consists of three parts: Hazards of materials Process design basis Equipment design basis This step also designates which equipment is PSM Critical
  • 21. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 21 Process Hazard Analysis (PHA) PRINCIPLE Process risk analysis is used to methodically identify, evaluate, and develop methods to control significant risk in the process. APPLICATION Existing Installations New installations Decommissioning
  • 22. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 22 PHA Implementation Activities 1. Planning and Preparing 2. Hazards Identification 3. Process Hazards Evaluation 4. Consequence Analysis 5. Human Factors 6. Facility Siting 7. Risk Assessment 8. Recommendations 9. Documentation of Recommendations 10. Management Response
  • 23. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 23 PHA Methodologies Both Qualitative and Quantitative Use alone or in combination, depending on individual PHA Qualitative techniques What If / Checklist Failure Mode and Effect Analysis (FMEA) Hazard and Operability Study (HAZOP) Structured What / If (Combines What / If with HAZOP) Quantitative techniques Fault Tree Analysis (FTA)
  • 24. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 24 Overall Risk Classification 6 III II I I I I 5 III III II I I I 4 IV III III II I I 3 IV IV III III II I 2 IV IV IV III III II 1 IV IV IV IV III III C1 C2 C3 C4 C5 C6 Likelihood Category Increasing Likelihood Consequence Category Increasing Consequence
  • 25. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 25 Risk Responses I II III IV Extreme Risk and Intolerable. Significant and urgent action required; risk to be reduced to at least Level III. Sr. V.P. is informed and tracks mitigation/controls implementation. High Risk and Undesirable. Controls are required to reduce risk to at least Level III. Responsible V.P. is informed and tracks mitigation/controls implementation. Moderate Risk and Tolerable With Controls. Management monitors/audits controls to make sure they are in place and effective. Additional action may be required. Low Risk and Tolerable As Is. No mitigation is required. Monitoring to insure situation does not change is expected of management.
  • 26. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 26 Auditing PRINCIPLE Audits are important tools in the establishment, measurement, maintenance, and continuous improvement of PSM performance. Audits compare performance versus established standards. Audits done at 1st Party and Second Party Level Audits are scored and reported to corporate management Recommendations are tracked to closure Management held accountable for audit performance & action closure
  • 27. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 27 Features of a Well-Implemented PSM System PSM is integrated into the other business processes There is a full understanding of all process hazards Everyoneā€™s roles and responsibilities are well defined and executed well Sufficient commitment of resources; people and money Facility is designed, operated, and maintained at a world-class level Continuous improvement is achieved via the use of metrics, audits and ever strengthening standards A goal of zero process incidents is pursued by all
  • 28. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 28 Avoidance of catastrophic events that injure people, facilities, business and the environment Improved sustainability performance Improved productivity and reduced costs through reduced downtime; fewer incidents Sustained ā€œright to operate,ā€ as granted by the community, governments and other stakeholders Improved employee morale Improved credibility in the investment community Risk Management Program Benefits
  • 29. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 29 DuPont Process Incident Performance Number of PSI's vs. % Audit Scores 0 20 40 60 80 100 120 140 160 180 200 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 # of PSI's 50 55 60 65 70 75 80 85 90 95 100 % Audit Scores # of PSI's Audit Scores
  • 30. Copyright Ā© 2013 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo, DuPontā„¢, The miracles of scienceā„¢ and all products denoted with Ā® or ā„¢ are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Feb-13 Developing a Robust PSM Framework at DuPont 30 Conclusion Successful leaders identify, evaluate and mitigate operational risks through: Implementing comprehensive, integrated management systems Fostering a positive, trusting and open culture Pursuing and achieving the goal of zero significant operational incidents ā€œIt is imperative that leadership set the ā€˜tone at the topā€™ of the organization and establish appropriate expectations regarding process safety performance.ā€ Baker Panel Report (January 2007)