PSM PPT Board Meeting

Process Safety Management
Tim Collins
January 2020
1
ISSF & Process Safety Management (PSM)
 Key questions
 Why is PSM important to all of us in the stainless steel industry ?

 What are the ISSF doing to support our members in PSM ?
 What can we do to protect ourselves from Process Safety Incidents ?
2
Why is PSM Important ?
 Process safety incidents are the highest single cause of fatalities
– In our industry
 Process safety incidents can lead to
– Multiple fatalities
– Many serious injuries
– Massive pollution
– Major economic disruption
– Significant corporate fines
– Prosecution and imprisonment
 Process safety incidents are less easy to predict
– Compared to occupational safety incidents
– …. and will frequently necessitate complex countermeasures 3
ISSF Fatality Frequency Rate (FFR)
0,080
0,070
0,069
0,070 0,067
FFR per million hours worked
0,060 0,055
0,051 0,050
0,050
0,044
0,045
0,039 0,039 0,038
0,040
0,032 0,031 0,033 0,041
0,030 0,030
0,029 0,028
0,030 0,025
0,031 0,026 0,020
0,020 0,017
0,014 0,017 0,015
0,012 0,01
0,013
0,010 1
0,012
0,000 0 0 0 0 0
0,000
FFR Employees FFR Contractors FFR Total

4
ISSF Lost Time Injury Frequency Rate (LTIFR)
9,00
8,00
LTIFR per million hours worked
7,00
6,00
5,00
4,00
3,00
2,00
1,00
0,00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ISSF worldsteel Oil & Gas

5
What is Process Safety Management ?
 PSM is a blend of engineering, operations and management skills
 Focused on preventing catastrophic accidents, particularly
– Structural collapse
– Explosions
– Fires and toxic releases
 Associated with loss of containment of energy or dangerous substances
 eg; toxic gases, molten metal, chemicals and petroleum products.
 The manufacturing of all steels involves processes with
intrinsic hazards that need careful management.
 The measures needed to control these hazards are often complex.
 The primary focus of PSM needs to be avoiding loss of containment
– Some well-known and devastating examples are shown in this presentation
6
PSM; Initial Thinking
Understanding Process Safety Incidents
High
Severity
Process Safety
We cannot predict the likelihood of Process Occupational

Safety incidents (PSIs) occurring in the
same way as we would for Safety
Occupational Safety incidents.
The needed thought processes will be
Low highlighted later in this presentation.
Severity
Low High
Probability Probability 7
What Are the Outcomes ?
When PSM is not Performed or Goes Wrong
Piper Alpha
1988
167 fatalities
9.3bn USD Deepwater
**
Horizon
2010
11 fatalities
44.8bn
USD
Texas City **
2004
15 fatalities
1.1bn
USD
** Flixborough
1974
28 fatalities
0.5bn
USD
** costs indexed to 2019 8
**
An ISSF Example of Loss of Containment
6 December 2007; ThyssenKrupp’s Terni Plant in Italy
• The plant was in the process of being shut down

• Seven men working the line were in the pulpit cooking their lunch
• A line fire occurred and lubricating oil hoses become disconnected
9
What Actually Happened ?
6 December 2007; ThyssenKrupp’s Terni Plant in Italy
• The men ran to the line to solve the problem

• Oil was being sprayed into the air at pressure
• The men were soaked in oil
• A flash fire occurred
• The fire resulted in the immediate death of 1 worker
• Severe injuries for a further 6 workers
• All 6 workers died from severe burns in the subsequent days
10
What Were the Consequences ?
• A devastating human tragedy

• The lives of 7 families destroyed forever
• Deep societal impact, serious reputational damage
• Company accused of failure to maintain adequate systems and
safety procedures
• CEO convicted of 2nd degree murder …. 10 years in prison
• 5 other executives convicted of manslaughter
• Sentenced to 6-7 years in prison
• Company fined €1M and barred from advertising in Italy, denied
tax breaks and subsidies, for six months.
• Relatives of the 7 deceased workers given financial
compensation
•
11
Civil action was filed against the firm
PSM; Avoid the Domino Effect
• Not undertaking PSM can create the following unwanted outcomes
1. Kill and injure many people

2. Create massive pollution
3. Deliver major economic disruption
4. Severely damage a company’s reputation
5. Deliver major negative financial impacts
6. Paralyse a company’s activities
7. Paralyse entire organisations
8.Removal and prosecution of company
leaders or the company itself
9. Individuals being imprisoned
Situations become Domino Effects 12
What Are the ISSF Doing to Support PSM ?
PSM Expert Groups

HSE Committee and Knowledge Sharing with Worldsteel run by Worldsteel
PSM Workshops
run by
Worldsteel
Steel
Safety
Day PSM Webinars PSM Awards
Plus …. • Metrics
• Useful tools
• Guidance notes
• Best practice sharing
13
Protecting Ourselves from PSIs
 Establish some clear fundamentals
 Ensure there is a commitment to Process Safety Management

 Establish a hazard evaluation and risk analysis programme
 Implement and maintain a risk management and control system
 Strive towards excellence in learning from experience
 Utilise continuous improvement
– To ensure Process Safety Management system effectiveness.
 Maintain a sense of vulnerability in Process Safety Management
14
Ensure There is a Committment to PSM
 Develop and maintain a process safety culture
 Ensure good workforce involvement and participation
 Ensure strong stakeholder involvement
 Develop workforce competencies in PSM
– Thinking about the domino effect when several features come together
 Deliver safe performance based on adherence to standards
 Is Process Safety Management a core value in your organization ?
15
Establish a Hazard Evaluation and
Risk Assessment Programme
 Ensure your workforce has solid process and equipment knowledge
 Ensure the workforce understand legal process / storage issues
 Establish a hazard identification and risk analysis (HIRA) process
 Ensure consideration of the domino effect
– What hazards could come together to create a devastating outcome ?
– Do we have barriers in place to prevent these situations from happening ?
 Do you understand your PSM hazards and risks ?
16
Implement and Maintain a
Risk Management & Control System
 Establish good operational practices
 Ensure good asset integrity and reliability
 Ensure contractors are part of the whole programme
 Investing in training and monitor performance
 Apply robust management of change processes
 Be prepared for and practice emergency procedures
 Do you manage your PSM risks to keep them at tolerable levels ?

 Do you have emergency plans in all your units ?
17
Strive for Excellence in Learning From
Experience
 Investigate all PSM incidents including near misses
 Monitor external sources of information and act
 Measure and use industry standard metrics
 “There is only one thing more painful than learning from experience
and that is not learning from experience”
– Archibald MacLeish, American Poet & Writer
18
Utilise Continuous Improvement
 Audit your PSM system regularly
– Look at ongoing safety performance
– Identify hazards and likely consequences arising from those hazards
– Look at impacting hazards and the likely outcomes of those impacts
– Undertake safety behavioural observations when working in hazardous areas
 Undertake management reviews of the audits and PSM system
 Train, train, train in PSM
 “If you think training is expensive, try ignorance”

– Peter Drucker, US Management Guru
19
Maintain a Sense of Vulnerability
 Never consider it can’t happen here
 Use PSM training to always consider what can and could happen
 Remember the Titanic was billed as ‘unsinkable’
20
The Three Critical Questions
 Your leadership team must be able to answer the following
 Do you know what could go wrong ?

 Do you know what barriers we have to ensure that it doesn’t go wrong?
 Do you know if our barriers are effective and working properly?
1. Understand the 2. Identify and 3. Ensure barrier

hazards and the risks specify the barriers performance …. always
Control high risk and high consequence scenarios

21
Summary
 PSM is something that we must all consider deeply
 We have to ‘live and breathe’ PSM in our industry
– We have many significant hazards and associated risks
 It’s a long term game
 PSIs can happen in our plants
 Repeating the PSM message is vital
 The ISSF can support members in their PSM system development

– In conjunction with ‘worldsteel’ resources
 Please ask if you need some guidance and support
22

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Process Safety Management

 Why is PSM important to all of us in the stainless steel industry ?

FFR Employees FFR Contractors FFR Total

ISSF worldsteel Oil & Gas

We cannot predict the likelihood of Process Occupational

6 December 2007; ThyssenKrupp’s Terni Plant in Italy

• The plant was in the process of being shut down

6 December 2007; ThyssenKrupp’s Terni Plant in Italy

• The men ran to the line to solve the problem

• A devastating human tragedy

1. Kill and injure many people

PSM Expert Groups

 Ensure there is a commitment to Process Safety Management

 Is Process Safety Management a core value in your organization ?

 Do you understand your PSM hazards and risks ?

 Do you manage your PSM risks to keep them at tolerable levels ?

 “If you think training is expensive, try ignorance”

 Remember the Titanic was billed as ‘unsinkable’

 Do you know what could go wrong ?

1. Understand the 2. Identify and 3. Ensure barrier

Control high risk and high consequence scenarios

 The ISSF can support members in their PSM system development

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