guidelines for process safety...

GUIDELINES FOR PROCESS SAFETY METRICS

Center for Chemical Process Safety New York, New York

An AlCnE 1ecnnoIcqy Amam

Center for Chemical Pmcess spceh,

@WILEY A JOHN WILEY & SONS, INC., PUBLICATION

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Center for Chemical Process Safety New York, New York

An AlCnE 1ecnnoIcqy Amam

Center for Chemical Pmcess spceh,

@WILEY A JOHN WILEY & SONS, INC., PUBLICATION

Copyright 0 2010 by American Institute of Chemical Engineers, Inc. All rights reserved.

A Joint Publication of the Center for Chemical Process Safety of the American Institute of Chemical Engineers and John Wiley & Sons, Inc.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data is available.

Guidelines for process safety metrics / Center for Chemical Process Safety. p. cm.

Includes index.

1. Industrial safety-Evaluation-Statistical methods. 2. Industrial management-Evaluation- Statistical methods. I. American Institute of Chemical Engineers. Center for Chemical Process Safety. T55.3S72G85 2010 660' .28044c22 2009031381

ISBN 978-0-470-57212-2 (cloth/cd)

Printed in the United States of America.

10 9 8 7 6 5 4 3 2 1

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This book is one in a series of process safety guidelines and concept books published by the Center for Chemical Process Safety (CCPS). Please go to www.wifey.com/go/ccps for a full list of titles in this series.

It is sincerely hoped that the information presented in this document will lead to an even more impressive safety record for the entire industry. However, the American Institute of Chemical Engineers, its consultants, the CCPS Technical Steering Committee and Subcommittee members, their employers, their employers officers and directors, and AcuTech Consulting Group, Inc., and its employees do not warrant or represent, expressly or by implication, the correctness or accuracy of the content of the information presented in this document. As between (1) American Institute of Chemical Engineers, its consultants, CCPS Technical Steering Committee and Subcommittee members, their employers, their employers officers and directors, and AcuTech Consulting Group, Inc., and its employees and (2) the user of this document, the user accepts any legal liability or responsibility whatsoever for the consequences of its use or misuse.

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Items on The CD Accompanying This Book Acronyms and Abbreviations

Preface .................................................................................................................. xxi

INTRODUCTION 1 1.1 An Introduction to Process Safety and Metrics 1.2 Purpose of This Book 1.3 Key Audiences for the Guidelines 1.4 An Organizations Personnel Hierarchy 1.5 Organization of This Guideline 1.6 Using This Guideline

WHY IMPLEMENT PROCESS SAFETY METRICS 9 2.1 Preventing Process Safety Incidents 11 2.2 Benefits from Measuring Performance 13 2.3

Performance 16 2.4 Avoiding Complacency 17 2.5 Conclusion 17

Tracking Operational Performance and Process Safety

PROCESS SAFETY MANAGEMENT METRICS 19 3.1 3.2 Other Metric Dimensions 3.3 Forms of Metrics 3.4 Characteristics of Good Metrics 3.5 Conclusion

Metrics and the Process Safety Models 19 24 26 27 30

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viii GUIDELINES FOR PROCESS SAFETY METRICS

CHOOSING APPROPRIATE METRICS 4.1 Process Safety Goals and Objectives 4.2. Define the Process Safety Goals 4.3 Define Process Safety Objectives 4.4 Develop the Metrics Strategy for Improving the Process Safety

4.5 Select Metrics 4.6 Conclusion

System

IMPLEMENTING A METRICS PROGRAM 5.1 Management Support and Leadership 5.2 Develop an Implementation Strategy 5.3

Strategy 5.4 Implementation Analysis 5.5 Prepare for Rollout 5.6 Rollout 5.7 5.8 Conclusion

Develop the Framework for the Metrics Implementation

Reevaluate Metrics Based Upon Experience

COMMUNICATING RESULTS 6.1 Communication Analysis 6.2 Select Appropriate Communication Characteristics 6.3 6.4 Tools for Communicating Metrics 6.5 Conclusion

Report Appropriate Data to Different Audiences

USING METRICS TO DRIVE PERFORMANCE IMPROVEMENTS

7.1

7.2 7.3 Hold Responsible Parties Accountable 7.4 Engage the Public 7.5 Conduct Periodic Management Reviews 7.6 7.7

7.8 Conclusion

Identify Weaknesses and Deficiencies in Process Safety

Leadership Commitment to Process Safety Performance Performance

Cultivate a Positive Process Safety Culture Communicate Process Safety and Other Organizational

Successes

33 33 35 37

42 46 51

53 53 53

56 61 69 72 75 75

77 78 82 85 90 93

97

98 99 99

102 103 105

107 108

CONTENTS ix

IMPROVING INDUSTRY-WIDE PERFORMANCE 111 8.1 Performance Benchmarking 111 8.2 Metrics Allow Performance Comparisons for Multiple Parties 112 8.3 Sharing Data Across Industry Leads to Improved Performance 114 8.4 Conclusion 118

FUTURE TRENDS IN THE DEVELOPMENT AND USE OF PROCESS SAFETY METRICS 121

9.1 Improving Process Safety 9.2 Societal Interests

121 126

APPENDIX I: LISTING OF POTENTIAL PROCESS SAFETY METRICS TO CONSIDER (BASED ON THE RISK BASED PROCESS SAFETY ELEMENTS) 131

APPENDIX II: PROCESS SAFETY PERFORMANCE INDICATORS: BP CHEMICALS HULL CASE STUDY 163

APPENDIX 111: NOVA CHEMICALS UNCONTROLLED PROCESS FIRE AND LOPC METRES 171

INDEX 173

ITEMS ON THE CD ACCOMPANYING THIS BOOK

CCPS Process Safety Leading & Lagging Indicators, December 2007

Safety Performance Indicators Guidance for Industry and Safety Performance Indicators Guidance for Public Authorities and Communities, OOECD 2008, available online at wuw.oecd.org/ehs (reprinted with permission of OECD)

HSG 254 Developing process safety indicators. A step-by-step guide for chemical and major hazard industries (ISBN 07 1766 1806). 0 Crown copyright material is reproduced with the permission of the Controller of HMSO and Queens Printer for Scotland.

D. Cummings, The Evolution and Current Status of Process Safety Metrics in DuPont (presented at AIChE Spring National Meeting, April 2008)

A. Hopkins, Thinking About Process Safety Indicators (reprinted from Safety Science 47 (2009) 4 6 0 4 5 with permission from Elsevier)

F. Henselwood, Use of Pareto Shape Parameter as a Leading Indicator of Process Safety Performance, Process Safety Progress, February 26, 2009 (reprinted with permission of John Wiley & Sons, Inc.)

K. Harrington, H. Thomas, S. Kadri, Using Measured Performance as a Pro- cess Safety Leading Indicator (Presented at the Global Congress on Process Safety, April 2008)

Examples of Safety Metrics Dashboards

Full Listing of Potential Process Sufety Metrics to Consider (Based on Risk Based Process Safety Elements)

xi

ACC AIChE AN1 API

CAPP CCPS CFR COMAH CSB

EPA EFCE EU

FMEA

GEM1

HIRA HSE

ILO INPO

MI MOC

NEP NGO

OECD 011 OSHA

P&ID PHA PSI PSIC PSISR PSM

American Chemistry Council American Institute of Chemical Engineers American Nuclear Insurers American Petroleum Institute

Chemical Accident Prevention Program Center for Chemical Process Safety Code of Federal Regulations Control of Major Accident Hazards (U.K. HSE Regulation) U.S. Chemical Safety and Hazard Investigation Board

U.S. Environmental Protection Agency European Federation of Chemical Engineering European Union

Failure Modes and Effects Analysis

Global Environmental Management Initiative

Hazard Identification and Risk Analysis Health and Safety Executive (U.K.)

International Labour Organization Institute of Nuclear Power Operations

Mechanical Integrity Management of Change

National Emphasis Program Non-Governmental Organization

Organization for Economic Cooperation and Development Occupational Injury and Illness U.S. Occupational Safety and Health Administration

Piping and Instrumentation Diagram Process Hazard Analysis Process Safety Incident Process Safety Incidents Count Process Safety Incident Severity Rate Process Safety Management (U.S. OSHA Regulation)

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xiv GUIDELINES FOR PROCESS SAFETY METRICS

RAGAGEP

RBPS RMP ROP

SAICM SAT

TCPA TQ UNEP

VPP

Recognized and Generally Accepted Good Engineering Practice Risk-Based Process Safety Risk Management Program; Risk Management Plan Reactor Oversight Program (U.S. Nuclear Regulatory Commission)

Strategic Approach to International Chemicals Management Systematic Approach to Training

Toxic Catastrophe and Prevention Act Threshold Quantity

United Nations Environment Programme

Voluntary Protection Programs (U.S. Occupational Safety and Health Administration)

GLOSSARY

Asset Integrity

Audit

Controls

Element

Facility

Hazard

Hazard Identification and Risk Analysis ( H I M )

Incident

Incident Investigation

Work activities that help ensure that equipment is properly designed, is installed in accordance with specifications, and remains fit for purpose over its life cycle.

A systematic, independent review to verify conformance with prescribed standards of care using a well-defined review process to ensure consistency and to allow the auditor to reach defensible findings.

Engineered mechanisms and administrative policies/ procedures implemented to prevent or mitigate incidents.

Basic division in a process safety management system that correlates to the type of work that must be done (e.g., management of change [MOC]).

The physical location or site where the management system activity is performed.

Chemical or physical conditions that have the potential for causing harm to people, property, or the environment.

A collective term that encompasses all activities involved in identifying hazards and evaluating risk at facilities, throughout their life cycle, to make certain that risks to employees, the public, or the environment are consistently controlled within the organizations risk tolerance.

An unusual or unexpected event that either resulted in, or had the potential to result in, serious injury to personnel, significant damage to property, adverse environmental impact, or a major interruption of process operations.

A systematic approach for determining the causes of an incident and developing recommendations that address the causes to help prevent or mitigate future incidents.

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Knowledge (or Process Safety Knowledge)

Lagging Metric

Leading Metric

Life Cycle

Management of Change (MOC)

Management System

Mechanical Integrity

Near-Miss h i d e

OSHA Process Safety Management (OSHA PSM)

Procedures

Knowledge is related to information, which is often associated with policies, and other rule-based facts. It includes work activities to gather, organize, maintain, and provide information to other process safety elements. Process safety knowledge primarily consists of written documents such as hazard information, process technology information, and equipment-specific information.

A retrospective set of metrics based on incidents that meet an established threshold of severity.

A forward-looking set of metrics that indicate the performance of the key work processes, operating discipline, or layers of protection that prevent incidents.

The stages that a physical process or a management system goes through as it proceeds from birth to death. These stages include conception, design, deployment, acquisition, operation, maintenance, decommissioning, and disposal.

A system to identify, review, and approve all modifications to equipment, procedures, raw materials, and processing conditions, other than replacement in kind, prior to implementation.

A formally established set of activities designed to produce specific results in a consistent manner on a sustainable basis.

A program that helps ensure that equipment is properly designed, installed in accordance with specifications, and remains fit for purpose over its life cycle. Also, asset integrity.

The description of less severe incidents (i.e., below the threshold for inclusion in a lagging metric), or unsafe conditions that activated one or more layers of protection. Although these events are actual events (i.e., a lagging metric), they are generally considered to be a good indicator of conditions that could ultimately lead to a severe incident.

A US. regulatory standard that requires use of a 14-element management system to help prevent or mitigate the effects of catastrophic releases of chemicals or energy from processes covered by the regulations (49 C.F.R. 9 19 10.1 19). Written step-by-step instructions and associated information (cautions, notes, warnings) that describe how to safely perform a task.

mt

xvii GLOSSARY

Process

Process Safety

Process Safety Culture

Process Safety Management

Process Safety Metric

Reliability

Reliability Analysis

Risk-Based Process Safety

Safe Operating Limits

Safeguard

A broad term that includes the equipment and technology needed for petrochemical production, including reactors, tanks, piping, boilers, cooling towers, refrigeration systems, etc.

A disciplined framework for managing the integrity of operating systems and processes handling hazardous substances by applying good design principles, engineering, and operating practices. It deals with the prevention and control of incidents that have the potential to release hazardous materials or energy. Such incidents can cause toxic effects, fire, or explosion and could ultimately result in serious injuries, property damage, lost production, and environmental impact.

The combination of group values and behaviors that determines the manner in which process safety is managed. A sound process safety culture refers to attitudes and behaviors that support the goal of safer process operations.

The application of management systems to the identification, understanding, and control of process hazards to prevent process-related injuries and incidents; it is focused on prevention of, preparedness for, mitigation of, response to, and restoration from catastrophic releases of chemicals or energy from a process associated with a facility.

A standard of measurement or indicator of process safety management efficiency or performance.

The probability that an item is able to perform a required finction under stated conditions for a stated period of time or for a stated demand.

The determination of reliability of a process, system, or equipment.

The CCPSs process safety management system approach that uses risk-based strategies and implementation tactics that are commensurate with the risk-based need for process safety activities, availability of resources, and existing process safety culture to design, correct, and improve process safety management activities.

Limits established for critical process parameters, such as temperature, pressure, level, flow, or concentration, based on a combination of equipment design limits and the dynamics of the process.

See Controls.

xviii GUIDELINES FOR PROCESS SAFETY METRICS

Safety Instrumented System

Six Sigma

Stakeholder

Sustainability

Training

The instrumentation, controls, and interlocks provided for safe operation of the process.

A metric for measuring defects and improving quality. Also, a robust business improvement methodology that focuses an organization on customer requirements, process alignment, analytical rigor, and timely execution.

Individuals or organizations that can (or believe they can) be affected by the facilitys operations, or that are involved with assisting or monitoring facility operations.

Meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Practical instruction in job and task requirements and methods. Training may be provided in a classroom or at the workplace, and its objective is to enable workers to meet some minimum initial performance standards, to maintain their proficiency, or to qualify for promotion to a more demanding position.

Transparency Openness of an organization with regard to sharing information about how it operates.

Triple Bottom Line Expanding the traditional business-reporting framework to take into account environmental and social performance in addition to financial performance.

The American Institute of Chemical Engineers (AIChE) and the Center for Chemical Process Safety (CCPS) express their appreciation and gratitude to all members of the Process Safety Metrics Subcommittee and their CCPS member companies for their generous support and technical contributions in the preparation of these Guidelines. The AIChE and CCPS also express their gratitude to the team of authors from AcuTech Consulting Group.

PROCESS SAFETY METRICS SUBCOMMITTEE MEMBERS:

Tim Overton, Chair Michael Broadribb Cho Nai Cheung Elroy Christie Susie Cowher Eric Freiburger Harry Glidden Kent Goddard Rick Griffin Karen Haase Kenneth Harrington Steven Hedrick Shakeel Kadri Lisa Long Jack McCavit Mark Miner Jeff Philiph Cathy Pincus William Ralph Isador (Irv) Rosenthal Randall Sawyer S. L. Sreedhar Tomaysa Sterling

The Dow Chemical Company BP Contra Costa County Health Services Department Honeywell INEOS NOVA Chemical DuPont Solutia Chevron Phillips Chemical Company American Petroleum Institute Chevron Phillips Chemical Company Bayer Material .. Science Air Products and Chemicals U.S. Occupational Safety and Health Administration CCPS Emeritus Nalco Monsanto ExxonMobil BP The Wharton School, University of Pennsylvania Contra Costa County Health Services Department Santos Ltd. American Chemistry Council

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