Energy Institute Framework for High-level Process Safety Management

Process Safety Management for Steam & Power Generation

Martin W. Ball July 2010

Introduction
Purpose of Presentation.
Provide an update on the Development of the Energy Institute High Level Process Safety Management Framework
The need. The outline of the Framework Implementation and further development of the Framework

Background
EI Process Safety Committee identified benefit in promoting a common high-level framework for Process Safety Management across the energy industry sectors. Proposal received very high level of support during 2009 work program development Development Approach
Workshops with participants representing a cross section of the Energy Sector including the HSE.
Challenge & Validate need for a Process Safety Management Framework. Identify what we need from a PSM Framework Define the scope & detail of Framework

Subsequent wider interest group review

The Need
Workshop participants supported the need for a High Level Framework for Process Safety Management. Provide a vision for PSM Define a model for and raise profile of PSM within a company Define what needs to be in place to maintain Licence to Operate Help to define roles, responsibilities & accountabilities for PSM Easy to understand how to achieve suitable PSM Provide a basis for benchmarking

Process Industry Challenge

Integrity Integrity of of operation operation Maximise Maximise Income Income Minimise Minimise Costs Costs Effective Effective Capital Capital Investment Investment Effective Effective People People & & Organisation Organisation

Flawless Flawless Operation Operation

What we need to Achieve

Dont Hurt Anyone Dont Harm Environment x % ROCE

Investment Net Income

Personnel Development

Income
Feed Selection Plan Operation Set-up Operation Facility Availability

HSE
Compliance Operational Integrity

Expenditure
Maintce Cost Energy Use Cats & Loss Chems People O/head

How we Achieve it

PSM in Context
What we need to Achieve

Flawless Flawless Operation Operation Dont Hurt Anyone Dont Harm Environment x % ROCE

Investment Net Income

Personnel Development

Income
Feed Selection Plan Operation Set-up Operation Facility Availability

HSE
Compliance Operational Integrity

Expenditure
Maintce Cost Energy Use Cats & Loss Chems People O/head

How we Achieve

PSM Framework need to enable us to answer two key questions with confidence 1. How will we assure the integrity of the operation? 2. How will we know . we are doing it ?

PSM Framework Structure

Increasing Detail

Focus Areas High level key components of the Framework. Elements The key aspects of the operation we need to get right in order to assure the integrity of the operation.

Expectations Expectations define what we need to get right in each Element.

PSM Framework Focus Areas

Process Safety Leadership

Review & Improvement

Assured Operational Integrity

Risk Identification

Risk Management

Process Safety Leadership Elements of PSM

Process Safety Leadership 01. Leadership Involvement & Responsibility Review & Improvement 02. Identification & Compliance with Legislation Assured Risk & Industry Standards Operational Identification Integrity 03. Employee Selection, Placement & Competency Assurance 04. Workforce Involvement Risk 05. Communication with Stakeholders Management

Risk Identification Elements of PSM

Process Safety Leadership

Review Assured & Operational & Risk Assessment Improvement 06. Hazard Identification Integrity 07. Documentation, Records & Process Knowledge Management Risk Management

Risk Identification

Risk Management Elements of PSM

08. Operating Manuals & Procedures 09. Process Monitoring & Operational Status Handover 10. Management of Operational Interfaces 11. Standards & Practices 12. Management of Change & Project Management Assured Operational 13. Operational Readiness & Process Start - up Integrity Review 14. Emergency Preparedness & Improvement 15. Inspection & Maintenance 16. Management of Safety Critical Devices 17. Work Control , Permit to Work & Task Risk Management 18. Contractor Selection & Management Risk Management Risk Identification Process Safety Leadership

Review & Improvement Elements of PSM

Process Safety Leadership 19. Incident Reporting & Investigation 20, Audit, Assurance and Management Review & Intervention Review Assured Risk & Operational Identification Improvement Integrity

Risk Management

Elements of PSM
01. Leadership Involvement & Responsibility 02. Identification & Compliance with Legislation & Industry Standards 03. Employee Selection, Placement & Competency Assurance 04. Workforce Involvement 05. Communication with Stakeholders 06. Hazard Identification & Risk Assessment 07. Documentation, Records & Process Knowledge Management 08. Operating Manuals & Procedures 09. Process Monitoring & Operational Status Handover 10. Management of Operational Interfaces 11. Standards & Practices 12. Management of Change & Project Management 13. Operational Readiness & Process Start - up 14. Emergency Preparedness 15. Inspection & Maintenance 16. Management of Safety Critical Devices 17. Work Control , Permit to Work & Task Risk Management 18. Contractor Selection & Management 19. Incident Reporting & Investigation 20, Audit, Assurance and Management Review & Intervention

Framework Implementation & Further Development

Implementation
Framework will be published early 4Q 2010
Available online via EI Website

Benchmarking Survey to be launched 1Q2011

Online subscription service Self assessment against defined criteria

Under Consideration: Develop Guidelines on how to meet Expectations

To be included in 2011 Budget Proposal

Compliance / Assessment Verification Service

Launch 4Q 2011 dependent upon demand