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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: ļ Safety & Health ļ Environmental Stewardship ļ Ethics ļ 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 āSafety is a line management responsibility. If we canāt do it safely - we wonāt do it at allā E.I. DuPont (circa 1817) āManagement 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 companyās 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 SMEās 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 PHAās 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 Everyoneās 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 āright 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 āIt is imperative that leadership set the ātone at the topā of the organization and establish appropriate expectations regarding process safety performance.ā Baker Panel Report (January 2007)
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