Developing process safety indicators

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1 Health ad Safety Developig process safety idicators A step-by-step guide for chemical ad major hazard idustries This is a free-to-dowload, web-friedly versio of HSG254 (First editio, published 2006). This versio has bee adapted for olie use from HSE s curret prited versio. You ca buy the book at ad most good bookshops. ISBN Price This guidace is aimed at seior maagers ad safety professioals withi major hazard orgaisatios that wish to develop performace idicators to give improved assurace that major hazard risks are uder cotrol. It is presumed that compaies usig this guide already have appropriate safety maagemet systems, so the emphasis is o checkig whether their risk cotrols are effective ad operatig as iteded. The guide draws o good practice i the UK chemical sector. Too may orgaisatios rely heavily o failure data to moitor performace, so improvemets or chages are oly determied after somethig has goe wrog. Discoverig weakesses i cotrol systems by havig a major icidet is too late ad too costly. Early warig of dagerous deterioratio withi critical systems provides a opportuity to avoid major icidets. Kowig that process risks are effectively cotrolled has a clear lik with busiess efficiecy, as several idicators ca be used to show plat availability ad optimised operatig coditios. While aimed maily at major hazard orgaisatios, the geeric model for establishig a performace measuremet system described i this guide will also apply to other eterprises requirig a high level of assurace that systems ad procedures cotiue to operate as iteded. HSE Books Page 1 of 59

2 Health ad Safety Crow copyright 2006 First published 2006 ISBN All rights reserved. No part of this publicatio may be reproduced, stored i a retrieval system, or trasmitted i ay form or by ay meas (electroic, mechaical, photocopyig, recordig or otherwise) without the prior writte permissio of the copyright ower. Applicatios for reproductio should be made i writig to: The Office of Public Sector Iformatio, Iformatio Policy Team, Kew, Richmod, Surrey TW9 4DU or This guidace is issued by the Health ad Safety. Followig the guidace is ot compulsory ad you are free to take other actio. But if you do follow the guidace you will ormally be doig eough to comply with the law. Health ad safety ispectors seek to secure compliace with the law ad may refer to this guidace as illustratig good practice. Page 2 of 59

3 Health ad Safety Cotets Foreword 4 Part 1: Itroductio 5 Structure ad cotet 6 Measurig performace early warig before catastrophic failure 6 What s differet about this guide? 6 Part 2: Six steps to performace measuremet 10 Step 1: Establish the orgaisatioal arragemets to implemet idicators 11 Step 2: Decide o the scope of the idicators 13 Step 3: Idetify the risk cotrol systems ad decide o the outcomes 18 Step 4: Idetify critical elemets of each risk cotrol system 22 Step 5: Establish data collectio ad reportig system 25 Step 6: Review 26 Part 3: Worked example 28 Risk cotrol systems 37 Refereces 58 Further iformatio 59 Developig process safety idicators Page 3 of 59

4 Health ad Safety Foreword There is a collective eed for the chemical ad major hazard sectors to demostrate that risks are beig adequately cotrolled, as the idustry is ofte judged by the worst performer or agaist the last major icidet to gai public attetio. Sice the publicatio of the BP Gragemouth Major icidet ivestigatio report, 1 the Health ad Safety (HSE) ad idustry have bee workig closely to develop the meas by which compaies ca develop key performace idicators for major hazards ad esure process safety performace is moitored ad reported agaist these parameters. This guide has bee produced joitly by HSE ad the Chemical Idustries Associatio (CIA), based o iformatio ad ideas from idustry. The six-stage process outlied should help compaies through the mai steps towards implemetig process safety performace idicators. Ivestigatio of major icidets chemical ad major hazard istallatios have show that it is vital that chemical compaies kow that systems desiged to cotrol risks operate as iteded. This work, built from close collaboratio betwee HSE ad idustry, helps provide this assurace. It is importat that we cotiue to share uderstadig of best practice i this developig area. Reviewig performace will icreasigly feature i our ispectio programme. Kevi Allars Head of Chemical Idustries Divisio HSE Measuremet leads to cofidece. Our Resposibe Care 2 commitmet is to cotiuous improvemet i all aspects of health, safety ad evirometal maagemet. This importat ew iitiative will help us all gai a better uderstadig of potetially serious icidet precursors, ad will eable us to make further improvemets to our overall health, safety ad evirometal maagemet systems. Steve Elliot Director Geeral Chemical Idustries Associatio Developig process safety idicators Page 4 of 59

5 Health ad Safety Part 1: Itroductio Measuremet leads to cofidece 1 This guide is iteded for seior maagers ad safety professioals withi orgaisatios that wish to develop performace idicators to provide assurace that major hazard risks are uder cotrol. A small umber of carefully chose idicators ca moitor the status of key systems ad provide a early warig should cotrols deteriorate dagerously. 2 Although primarily aimed at major hazard orgaisatios, the geeric model for establishig a performace measuremet system described i this guide ca equally be applied to other eterprises requirig a high level of assurace that systems ad procedures cotiue to operate as iteded. 3 It is presumed that compaies usig this guide already have appropriate safety maagemet systems i place; the emphasis of this guide is therefore to check whether the cotrols i place are effective ad operatig as iteded. 4 Too may orgaisatios rely heavily o failure data to moitor performace. The cosequece of this approach is that improvemets or chages are oly determied after somethig has goe wrog. Ofte the differece betwee whether a system failure results i a mior or a catastrophic outcome is purely dow to chace. Effective maagemet of major hazards requires a proactive approach to risk maagemet, so iformatio to cofirm critical systems are operatig as iteded is essetial. Switchig the emphasis i favour of leadig idicators to cofirm that risk cotrols cotiue to operate is a importat step forward i the maagemet of major hazard risks. 5 The mai reaso for measurig process safety performace is to provide ogoig assurace that risks are beig adequately cotrolled. Directors ad seior maagers eed to moitor the effectiveess of iteral cotrols agaist busiess risks. For major hazard istallatios ad chemical maufacturers, process safety risks will be a sigificat aspect of busiess risk, asset itegrity ad reputatio. May orgaisatios do ot have good iformatio to show how well they are maagig major hazard risks. This is because the iformatio gathered teds to be limited to measurig failures, such as icidets or ear misses. Discoverig weakesses i cotrol systems by havig a major icidet is too late ad too costly. Early warig of dagerous deterioratio withi critical systems provides a opportuity to avoid major icidets. Kowig that process risks are effectively cotrolled has a clear lik with busiess efficiecy, as several idicators ca be used to show plat availability ad optimised operatig coditios. 6 The method of settig idicators outlied i this guide requires those ivolved i maagig process safety risks to ask some fudametal questios about their systems, such as: What ca go wrog? What cotrols are i place to prevet major icidets? What does each cotrol deliver i terms of a safety outcome? How do we kow they cotiue to operate as iteded? 7 Compaies who have adopted process safety performace idicators have reported that they have: a icreased assurace o risk maagemet ad protected reputatio; Developig process safety idicators Page 5 of 59

6 Health ad Safety demostrated the suitability of their risk cotrol systems; avoided discoverig weakesses through costly icidets; stopped collectig ad reportig performace iformatio which was o loger relevat thereby savig costs; ad made better use of iformatio already collected for other purposes, eg quality maagemet. Structure ad cotet 8 Part 2, the mai part of this guide, describes a six-step process that ca be adopted by orgaisatios wishig to implemet a programme of performace measuremet for process safety risks. Each stage is explaied i detail withi a separate chapter. To help put the process ito cotext, a full worked example for a top-tier COMAH 3 site is icluded i Part 3. 9 Although this model ca be followed step-by-step, may orgaisatios already have a performace measuremet system i place ad may ot wish to embark o radical chage. I such circumstaces, this guide may be used as a framework agaist which to compare existig programmes to decide if improvemets are eeded, as it draws o good practice withi the UK chemical sector. 10 Throughout this guide, the term process safety maagemet system is used to describe those parts of a orgaisatio s maagemet system iteded to prevet major icidets arisig out of the productio, storage ad hadlig of dagerous substaces. Risk cotrol system (RCS) is used to describe a costituet part of a process safety maagemet system that focuses o a specific risk or activity, eg plat ad process chage, permit to work, ispectio ad maiteace etc. Measurig performace early warig before catastrophic failure 11 Most systems ad procedures deteriorate over time, ad system failures discovered followig a major icidet frequetly surprise seior maagers, who sicerely believed that the cotrols were fuctioig as desiged. Used effectively, process safety idicators ca provide a early warig, before catastrophic failure, that critical cotrols have deteriorated to a uacceptable level. 12 Measurig performace to assess how effectively risks are beig cotrolled is a essetial part of a health ad safety maagemet system, as explaied i Successful health ad safety maagemet, 4 ad, for example, the CIA s Resposible Care Maagemet Systems: 5 active moitorig provides feedback o performace before a accidet or icidet; whereas reactive moitorig ivolves idetifyig ad reportig o icidets to check the cotrols i place are adequate, to idetify weakesses or gaps i cotrol systems ad to lear from mistakes. What s differet about this guide? Dual assurace a leadig ad laggig idicator for each risk cotrol system 13 The mai differece betwee the approach outlied i this guide ad existig guidace o performace measuremet is the itroductio of the cocept of dual assurace that key risk cotrol systems are operatig as iteded. Leadig ad laggig idicators are set i a structured ad systematic way for each critical risk Developig process safety idicators Page 6 of 59

7 Health ad Safety cotrol system withi the whole process safety maagemet system. I tadem they act as system guardias providig dual assurace to cofirm that the risk cotrol system is operatig as iteded or providig a warig that problems are startig to develop. Leadig idicators 14 Leadig idicators are a form of active moitorig focused o a few critical risk cotrol systems to esure their cotiued effectiveess. Leadig idicators require a routie systematic check that key actios or activities are udertake as iteded. They ca be cosidered as measures of process or iputs essetial to deliver the desired safety outcome. Laggig idicators 15 Laggig idicators are a form of reactive moitorig requirig the reportig ad ivestigatio of specific icidets ad evets to discover weakesses i that system. These icidets or evets do ot have to result i major damage or ijury or eve a loss of cotaimet, providig that they represet a failure of a sigificat cotrol system which guards agaist or limits the cosequeces of a major icidet. Laggig idicators show whe a desired safety outcome has failed, or has ot bee achieved. Figure 1 Dual assurace - leadig ad laggig idicators measurig performace of each critical risk cotrol system 16 Accordig to James Reaso i Maagig the Risks of Orgaizatioal Accidets, 6 (major) accidets result whe a series of failigs withi several critical risk cotrol systems materialise cocurretly. Figure 2 illustrates a accidet trajectory model where a accidet trajectory passes through correspodig holes i the layers of defece, barriers ad safeguards. Each risk cotrol system represets a importat barrier or safeguard withi the process safety maagemet system. It should also be recogised that a sigificat failig i just oe critical barrier may be sufficiet i itself to give rise to a major accidet. 17 For each risk cotrol system: the leadig idicator idetifies failigs or holes i vital aspects of the risk cotrol system discovered durig routie checks o the operatio of a Developig process safety idicators Page 7 of 59

8 Health ad Safety critical activity withi the risk cotrol system; ad the laggig idicator reveals failigs or holes i that barrier discovered followig a icidet or adverse evet. The icidet does ot ecessarily have to result i ijury or evirometal damage ad ca be a ear miss, precursor evet or udesired outcome attributable to a failig i that risk cotrol system. Figure 2 Leadig ad laggig idicators set to detect defects i importat risk cotrol systems (Reproduced with permissio of Ashgate Publishig Limited, from Maagig the Risks of Orgaizatioal Accidets James Reaso 1997 Ashgate Publishig Limited) 6 18 If uchecked, all systems will deteriorate over time ad major icidets occur whe defects across a umber of risk cotrol systems materialise cocurretly. Settig leadig ad laggig idicators for each risk critical cotrol system should reveal failigs i these barriers as they arise ad before all the importat barriers are defeated. Frequecy of checks 19 May orgaisatios rely o auditig to highlight system deterioratio. However, audit itervals ca be too ifrequet to detect rapid chage, or the audit may focus o compliace (verifyig the right systems are i place), rather tha esurig systems are deliverig the desired safety outcome. The use of process safety performace idicators fits betwee these formal, ifrequet audits ad more frequet workplace ispectio ad safety observatio programmes. It is importat Developig process safety idicators Page 8 of 59

9 Health ad Safety to bear i mid that a audit programme may be desiged to address differet issues whe compared to the iformatio gaied from performace idicators. Ideally, each will iform the other. Deficiecies ucovered by a audit may highlight the eed for a ew performace idicator ad vice versa. Therefore, performace idicators are ot a substitute for a audit programme but a complimetary activity to give more frequet or differet iformatio o system performace. Figure 3 How performace idicators fit withi ormal health ad safety moitorig activities Developig process safety idicators Page 9 of 59

10 Health ad Safety Part 2: Six steps to performace measuremet 20 This sectio outlies the six mai stages eeded to implemet a process safety measuremet system. Orgaisatios that do ot have a process safety performace measuremet system would beefit from cosiderig each stage i tur. Orgaisatios with performace measuremet systems i place ca use this guide as a bechmark of good practice ad cosider improvemets as appropriate. Table 1 Overview of the six steps to settig performace idicators Step 1 Step 2 Step 3 Step 4 Establish the orgaisatioal arragemets to implemet the idicators Decide o the scope of the measuremet system. Cosider what ca go wrog ad where. Idetify the risk cotrol systems i place to prevet major accidets. Decide o the outcomes for each ad set a laggig idicator Idetify the critical elemets of each risk cotrol system, (ie those actios or processes which must fuctio correctly to deliver the outcomes) ad set leadig idicators Appoit a steward or champio Set up a implemetatio team Seior maagemet should be ivolved Select the orgaisatioal level Idetify the scope of the measuremet system: Idetify icidet scearios - wat ca go wrog? Idetify the immediate causes of hazard scearios Review performace ad o-coformaces What risk cotrol systems are i place? Describe the outcome Set a laggig idicator Follow up deviatios from the outcome What are the most importat parts of the risk cotrol system? Set leadig idicators Set toleraces Follow up deviatios from toleraces Step 5 Establish the data collectio ad reportig system Collect iformatio - esure iformatio/uit of measuremet is available or ca be established Decide o presetatio format Step 6 Review Review performace of process maagemet system Review the scope of the idicators Review the toleraces Developig process safety idicators Page 10 of 59

11 Health ad Safety Step 1: Establish the orgaisatioal arragemets to implemet idicators Appoit a steward or champio to take the iitiative forward. I larger orgaisatios, cosider usig a process safety steerig committee. Seior maagemet should be actively ivolved i the developmet of idicators. 21 New orgaisatioal arragemets may be eeded to implemet a performace measuremet system. Someoe will have to make the case for process safety measuremet withi the compay ad the drive it forward to implemetatio. The beefits ad the costs will eed to be carefully cosidered ad the details of the exact idicators determied. Step 1.1: Appoit a steward or champio 22 A steward or champio is eeded to: promote, drive forward ad co-ordiate the itroductio of the ew cocept ad system; make the busiess case ad lik with compay health, safety, eviromet, quality ad busiess improvemet systems; commuicate ideas ad progress; keep i touch with others workig i this area ad gather iformatio o best practice; ad idetify ad evaluate the beefits achieved. Make the busiess case 23 Developig ad implemetig process safety idicators is ofte a ew area of work withi may orgaisatios, ad the eed for such a system will ot be immediately obvious to may people. To be successful, this sort of iitiative requires someoe withi the orgaisatio to promote the idea, gauge support ad the to drive forward the iitiative. This may iclude makig the busiess case for adoptig performace idicators ad securig suitable resources. 24 Moitorig ad measurig performace has always bee part of health ad safety maagemet systems. However, such systems frequetly overlook process safety issues because it is difficult to kow what to measure ad how to set leadig idicators. Where performace idicators already feature i a compay health ad safety maagemet system, it is importat for someoe to check the suitability of those idicators for providig ogoig assurace o the cotrol of process safety risks. It could be that existig performace idicators may oly show half the story ad that dual assurace derived from selectig a leadig ad laggig idicator for each critical RCS ca add sigificatly to such a system. Clarifyig gaps ad weakesses i existig measuremet systems ad idetifyig the associated busiess risks will be a key part of ay case for chage. Developig process safety idicators Page 11 of 59

12 Health ad Safety Idetifyig the busiess beefits 25 Idetifyig associated busiess beefits that ca accrue from improved process safety measuremet (such as improved productivity, efficiecy, reductio i the cost of loss-of-cotaimet icidets ad improved asset maagemet) will help to sell the iitiative withi the orgaisatio. Learig from others ad sharig good practice 26 This is a developig area of work with ew ideas ad experieces of usig process safety idicators emergig all the time. To avoid startig with a blak sheet of paper, it is helpful to kow what others withi the idustry are doig ad what represets good practice. It is importat therefore that someoe keeps up to date with these developmets, eg by joiig HSE s web commuity forum 7 or participatig i a CIA Resposible Care Cell. 8 Step 1.2: Set up a implemetatio team 27 Cosider the followig factors to decide whether a implemetatio team is eeded: the workload may be too much work for oe perso; there may be extra beefit from a team approach eg collective ideas; large orgaisatios with busy safety committees may eed a separate forum/ steerig committee; ivolvig employees should foster a shared uderstadig ad owership of risks ad cotrols. 28 It will usually be a safety professioal withi a orgaisatio who will champio the work ad steer it through to implemetatio. However, i large orgaisatios there will be too much for oe perso to deal with aloe ad it is ofte more appropriate to form a team to maage the itroductio of process safety idicators. This has the beefit of drawig i people from a rage of busiess operatios, providig the opportuity for poolig ideas, especially from employees who have direct kowledge of how systems deteriorate or become ieffective. A steerig committee may also be helpful to oversee the implemetatio programme ad to check the idicators match curret busiess priorities. For top-tier COMAH sites, the implemetatio team ad steerig group (where used) should comprise of people familiar with the safety report. Step 1.3: Seior maagemet ivolvemet Directors ad seior maagers are the mai customers for risk assurace iformatio. Seior maagers should actively participate i the implemetatio. Busiess beefits should be agreed. 29 The active cotrol of busiess risks by directors ad seior maagers is a essetial part of corporate goverace. 9 Seior maagers eed to fully uderstad the busiess beefits of performace measuremet ad clearly see how maagig process safety cotributes to the success ad sustaiability of their compay. It is vital that seior maagers are committed to adoptig meaigful idicators as they have ultimate resposibility for the cotrol of risk ad are therefore the mai customer for the ehaced iformatio. It is importat that maagemet teams, chief executives ad directors agree that the Developig process safety idicators Page 12 of 59

13 Health ad Safety idicators chose provide them with the right scope ad level of iformatio they eed to be satisfied that process safety risks are uder cotrol. 30 Seior maagers eed to make appropriate resources ad support available for the itroductio of process safety idicators. Step 2: Decide o the scope of the idicators Select the orgaisatioal level to which idicators will apply, eg: the whole orgaisatio; a idividual site or group of sites; a idividual istallatio/plat. 31 Settig the scope is about selectig the right idicators to provide just eough iformatio about the adequacy of process safety cotrols. Performace ca be moitored at a umber of orgaisatioal levels withi a busiess ad the iformatio ca be preseted i a hierarchical maer. The ature of the idicators will vary depedig upo the orgaisatioal level at which they have bee set. Idicators set for the whole orgaisatioal will, by their ature, ted to be more geeric, whereas those set at plat or site level will be more focused o key activities or processes ad give more direct feedback o the fuctioig of those activities. Tailor the idicators to suit the busiess 32 The maagemet systems ad activities of every orgaisatio are differet ad so the way performace idicators may be used will also differ from oe orgaisatio to aother. There is o right system to suit every eed ad may eterprises already have key performace idicators (KPIs) coverig a umber of busiess activities. It is importat that ew idicators coverig process safety are itegrated ito ad complemet existig arragemets for moitorig busiess performace. How may idicators? Quality ot quatity 33 It is ot ecessary to measure every aspect or elemet of a process safety maagemet system. Focusig o a few critical risk cotrol systems will provide a sufficiet overview of performace. Problems highlighted i oe risk cotrol system should trigger a more widespread review. 34 Busy maagemet teams will quickly lose iterest i a extesive raft of idicators, so it is essetial to avoid KPI overload. Data collectio ad aalysis is resource itesive, so arragemets for moitorig performace have to be cost effective. Eve for the largest orgaisatios a few idicators set agaist the mai risks will be sufficiet to provide a high degree of assurace across the whole busiess. Developig process safety idicators Page 13 of 59

14 Health ad Safety Step 2.1: Select the orgaisatioal level 35 This sectio applies maily to large or multi-site orgaisatios. Decide whether to set idicators at orgaisatio, site or istallatio/plat level. 36 May large orgaisatios cascade performace targets dowwards through the maagemet chai ad require performace iformatio agaist such targets to be reported back upwards. Traditioally, upward reportig comprised simply of exceptioal reportig of icidets. To provide assurace, iformatio to cofirm that key systems are operatig as iteded should be routiely reported upwards to directors ad seior maagers. 37 Idicators set at plat level provide maagers with routie iformatio to show that specific processes or activities are operatig as iteded, eg plat desig, plat chage, plaed ispectio ad maiteace withi that sphere of operatios. Idicators at this level provide very specific performace iformatio o the activities selected. 38 Idicators at site level provide a overview of critical systems operatig across the whole site. Usig a hierarchical approach, iformatio from idividual istallatios or operatioal plats ca be summarised across the whole site, eg maagig cotractors, emergecy arragemets, staff competece. 39 At a orgaisatioal level, a short summary of high-level idicators is eeded. These may be based o corporate goals ad objectives (a top-dow approach), but importatly, should also feature iformatio fed up from site level. 40 For complex sites such as refieries ad withi multi-site orgaisatios, the performace measuremet system ca be based o a hierarchical approach with very focused istallatio level idicators feedig up to more geeric site level ad orgaisatio level idicators. Low level idicators ca be weighted to reflect their importace at a particular site or istallatio, or ca be desigated as idex idicators to show that the most impact systems are operatig as iteded across the site or orgaisatio. Developig process safety idicators Page 14 of 59

15 Health ad Safety Orgaisatio level idicators Usig a traffic light system of producig the iformatio from idicators the orgaisatioal level idicator would be red if ay of the subsidiary sites had a red o the same elemet Orgaisatioal level idicators will be geeric ad reflect commo process safety system elemets i place i all compay facilities Site level idicators Site 1 Site 2 A site level idicator could be red if ay of the subsidiary istallatio level idicators were red. Alteratively, the result could be biased towards the idex idicators chose for each istallatio or plat Site idicators should reflect the major hazard scearios relevat to each site ad show the coditio of the RCS i place at the site to prevet the major accidet hazards Istallatio/ plat or facility level idicators Istallatio/plat/facility A Site 1 Istallatio/plat/facility B Site 1 Istallatio/plat/facility A Site 2 Istallatio/plat/facility B Site 2 Istallatio idicators should be based o what ca go wrog at the idividual istallatio to give rise to a major accidet/serious icidet. Istallatio level idicators should be very focused o the idividual RCS critical to the safe operatio of that istallatio or plat Plat chage RCS Ispectio ad maiteace RCS Staff competece RCS Operatig procedures RCS Emergecy arragemets RCS Permit to work RCS Idividual RCS may be give differet weightigs based upo the criticality of that RCS for the istallatio/plat, eg staff competece ad permit to work may be the most critical or vulerable RCS o Istallatio A, whereas ispectio ad maiteace may be the most importat RCS at Istallatio B, etc. These higher weighted RCS could the be used as idex idicators for the whole site x 1 x 1 x 3 x 1 x 1 x 2 Istallatio/plat/facility A Figure 4 A hierarchical Process Safety Performace Maagemet System for a multi-site orgaisatio Developig process safety idicators Page 15 of 59

16 Health ad Safety Dual assurace 41 Figure 5 illustrates the method used to establish firstly a laggig idicator ad the leadig idicators for each importat risk cotrol system. The strog lik betwee leadig ad laggig idicators actig i tadem provides dual assurace that the risk i questio is beig effectively maaged. Figure 5 Settig idicators - a overview Developig process safety idicators Page 16 of 59

17 Health ad Safety Step 2.2: Idetify the scope of the measuremet system Idetify the scope based o: the mai process safety risks ad key risk cotrol systems; areas where greater assurace o busiess risk is eeded : Idetify hazard scearios what ca go wrog? 42 It is importat to set leadig ad laggig idicators for the importat risk cotrol systems i place to cotrol or mitigate agaist major hazards see Figures 1 ad 2. These will differ depedig upo where i the orgaisatio it is decided to set the idicators. Figure 6 Idetify what ca go wrog 43 For COMAH 3 top-tier istallatios, the risk cotrol systems will have bee fully described i the safety report. At COMAH lower-tier istallatios ad other sites, idetify the process safety risks by first idetifyig a rage of hazard scearios associated with the busiess or activity beig cosidered, eg how major accidets ad icidets ca occur from activities such as storage, use ad trasfer of hazardous substaces. Ask what ca go wrog withi each mai area of your busiess. 44 Describig the mai icidet scearios helps you focus o the most importat activities ad cotrols agaist which idicators should be set. The scearios form a useful cross-check later o i Step 4, whe the critical elemets of risk cotrol systems to be moitored are determied : Idetify the immediate causes of hazard scearios 45 To help decide what ca go wrog ad how, it is useful to cosider the immediate cause of a icidet. This is the primary failure mechaism that gives rise to a icidet ad ca usually be categorised by coditios or factors that challege the itegrity of plat or equipmet. For istace, a pipelie or bulk tak failure could be due to: wear; corrosio; damage; over/uder pressurisatio; or fire or explosio. 46 Look also at areas where there are kow problems or cocers about the adequacy of risk cotrol systems. This could be based o past icidet/ear-miss data or iformatio from audits ad ispectios. It is beeficial to iclude workforce represetatives i this process, as it will address issues of most cocer to them. 47 A assessmet of all these factors should help establish the scope of the process measuremet system ad esure you focus o critical issues. Developig process safety idicators Page 17 of 59

18 Health ad Safety Step 3: Idetify the risk cotrol systems ad decide o the outcomes List the importat risk cotrol systems. Describe the outcome for each risk cotrol system. Set a laggig idicator to show whether the outcome is achieved. If you do t clearly idetify the desired safety outcome i terms of success, it will be impossible to idetify idicators that show the desired outcome is beig achieved. Step 3.1: What risk cotrol systems are i place? 48 For each sceario idetify the risk cotrol systems i place to prevet or mitigate the cosequeces of these evets. There may be several iterrelated or overlappig risk cotrol systems aimed at prevetio or mitigatio. It may be helpful to draw up a risk cotrol system matrix as illustrated i Part 3, Table 3. Idetify the primary cause 49 To determie which risk cotrol systems are importat to prevet or cotrol a challege to itegrity, first cosider the primary causes of the scearios idetified i Step For example, the primary causes of plat or equipmet wear could be: physical abrasio; vibratio; or stress. 50 A plaed plat ispectio ad maiteace system is a key risk cotrol system expected to be i place to prevet plat failure due to wear. eg plat failure due to wear plat ad equipmet does ot fail due to wear plaed plat ispectio ad maiteace RCS guards agaist failure due to wear Figure 7 Cosider what risk cotrol systems are i place Developig process safety idicators Page 18 of 59

19 Health ad Safety Step 3.2: Describe the outcome 51 After decidig o the hazard scearios ad associated risk cotrol systems resposible for prevetig icidets or mitigatig cosequeces, decide what success looks like for each risk cotrol system as it impacts o the hazard sceario. This should be expressed as the desired safety outcome. For example, a desired safety outcome for a plat ispectio ad maiteace risk cotrol system could be o failures or breakdow of safety critical plat or equipmet due to compoets wearig out. 52 It is ofte difficult to describe the outcome of a risk cotrol system that may have bee i place for a log time. You may fid the followig questios helpful: Why do we have this risk cotrol system? What does it deliver i terms of safety? What would be the cosequece if we did t have this system i place? Figure 8 Describe the desired safety outcome Step 3.3: Settig a laggig idicator 53 Set a laggig idicator to directly show whether or ot you are achievig the outcome. If the outcome has bee clearly described it should be possible to just use oe idicator, ie umber of icidets of loss of cotaimet of hazardous material, or failure of safety critical plat where corrosio, wear or damage was foud to be a cotributory factor. For example, a laggig idicator for a plat ispectio ad maiteace risk cotrol system could be the umber of expected failures or breakdow of safety critical plat or equipmet due to compoets wearig out (see the worked example i Part 3 for further iformatio). Laggig idicators show whether the outcome has actually bee achieved. Developig process safety idicators Page 19 of 59

20 Health ad Safety Figure 9 Set a laggig idicator to show whether or ot the outcome is achieved Developig process safety idicators Page 20 of 59

21 Health ad Safety Step 3.4: Follow up deviatios from the outcome 54 Settig idicators will ot lead to improved performace uless every deviatio from the iteded outcome or failure of a critical part of a risk cotrol system is followed up. For laggig idicators, every time the outcome is ot achieved there should be a ivestigatio to see why the system failed. Each occasio provides a opportuity to cosider whether improvemets should be made. Lessos from these equiries should be applied across the whole orgaisatio. Figure 10 Follow up adverse fidigs Developig process safety idicators Page 21 of 59

22 Health ad Safety Step 4: Idetify critical elemets of each risk cotrol system Idetify elemets of each risk cotrol system that are vital to deliver the outcome. Set leadig idicators to moitor effectiveess of those elemets of the risk cotrol system. Set the rage of tolerace for each idicator. Step 4.1: What are the most importat parts of the risk cotrol system? Figure 11 Idetify the most importat parts of the risk cotrol system 55 It is ot ecessary to moitor every part of a risk cotrol system. Cosider the followig factors whe determiig the aspects to cover: Which activities or operatios must be udertake correctly o each ad every occasio? Which aspects of the system are liable to deterioratio over time? Which activities are udertake most frequetly? 56 From this, idetify the elemets of each risk cotrol system that are critical i deliverig the outcome. The worked example i Part 3 illustrates how this process is applied. Step 4.2: Set leadig idicators 57 Oce the critical cotrols to be moitored are determied, set a leadig idicator agaist each oe to show that system is operatig as iteded, for example the percetage of safety critical plat ispected to schedule. Leadig idicators highlight whether the risk cotrol systems i place to deliver the outcome are operatig as desiged. Developig process safety idicators Page 22 of 59

23 Health ad Safety Figure 12 Set leadig idicators Step 4.3: Settig toleraces 58 A tolerace should be set for each leadig idicator. This represets the poit at which deviatio i performace should be flagged up for attetio of seior maagemet. For example, for a leadig idicator, percetage of overdue safety critical maiteace actios. Figure 13 Settig toleraces 59 The tolerace may be set at zero, which meas that 100% of actios must be completed o schedule. Alteratively, the compay may accept a degree of slippage before it is highlighted to the maagemet team, i which case the tolerace should be set below 100%. 60 The maagemet team should set the tolerace, ot the perso resposible for the activity. This eables maagemet to decide at what poit they wish to itervee because performace has deviated beyod a acceptable level. Developig process safety idicators Page 23 of 59

24 Health ad Safety Step 4.4: Follow up deviatios from toleraces 61 Deviatios from toleraces must be followed up, otherwise there is little poit i collectig the iformatio. The mai aim of a performace iformatio system is to idicate where process cotrol maagemet systems have deteriorated or are ot deliverig the iteded outcome. Figure 14 Follow up deviatios from toleraces Developig process safety idicators Page 24 of 59

25 Health ad Safety Step 5: Establish data collectio ad reportig system Esure iformatio/uit of measuremet for the idicator is available or ca be established. Decide o presetatio format. Collectio 62 Oce the idicators have bee selected ad the toleraces set, it is importat to esure that the relevat iformatio is readily available withi the orgaisatio. Experiece has show that the iformatio ad data required to support a suite of process safety idicators is usually already available ad collected for other purposes, eg for quality cotrol or busiess efficiecy. However, it is vital the data is collated to form a complete set of iformatio o process safety risks. 63 Ideally, it is best to co-ordiate the performace data through oe perso who will be resposible for collectig all the iformatio, compilig reports for the maagemet team ad raisig the alarm if there are ay deviatios from set toleraces. Presetatio 64 Keep the presetatio of performace data as simple as possible summarised i a sigle sheet. It is importat to clearly show ay deviatios from set toleraces or targets ad importat treds. Graphs, charts or dashboards are probably the best way to show this. Alteratively, various systems such as traffic lights (gree ok, yellow slight deviatio, red large deviatio) or smiley/sad faces (see Table 2) ca be used to highlight where you are doig well/badly. 65 The seior maagemet team should regularly receive key performace iformatio. They are the mai customers for this iformatio ad will eed to make decisios o corrective actio. There may be a hierarchy of idicators i place, each eedig to be collated separately. 66 Preset the data to clearly show the lik betwee the laggig idicator (icludig degree of success agaist outcome) ad the leadig idicator(s) relatig to the supportig risk cotrol systems. This will clearly highlight the cause-adeffect liks betwee them. Although the presetatio of data is importat, the data collected is worthless uless it is actually used to improve health ad safety. Developig process safety idicators Page 25 of 59

26 Health ad Safety Step 6: Review The periodic review should iclude: the performace of the process safety maagemet system; the scope of the idicators; the toleraces set. Table 2 Leadig ad laggig idicators for differet outcomes Review performace of the process safety maagemet system 67 Performace agaist each risk should be routiely reviewed by seior maagers to esure that the whole process safety maagemet system is deliverig the iteded outcomes, ad to provide assurace that critical systems cotiue to operate as iteded. Variatio i performace betwee leadig ad laggig idicators 68 If performace is poor agaist a group of leadig idicators but the associated laggig idicator is satisfactory, it is likely that the leadig idicators selected are too far removed from the critical cotrol measure that delivers or maitais the desired outcome. For istace, percetage of iductio traiig completed may be measured, whereas more importatly, traiig ad competece i a particular process activity may be more critical to esurig the safety of that specific activity. 69 If a group of leadig idicators are o target ad closely liked to the risk cotrol system but the associated laggig idicator shows poor performace, it is likely that risk cotrol system is ieffective i deliverig the desired outcome. Leadig idicators Outcome 1 (see paragraph 67) Outcome 2 (see paragraph 67) Laggig idicators Potetial review issue Leadig idicator too far removed from critical cotrol Cotrol system ieffective Potetial causes Measurig i the wrog place Doig the wrog thig Developig process safety idicators Page 26 of 59

27 Health ad Safety Review the scope 70 Idicators should ot be decided upo ad the forgotte about. Every few years, the scope of the full set of idicators eeds to be reviewed to esure idicators still reflect the mai process risks. Idicators may eed to be chaged because of: itroductio of ew, high-risk processes; improvemet programmes; alteratio i plat desig; reductio of staff/loss of competece i certai areas. 71 If reviews are ot carried out, process safety idicators may become meaigless ad the iformatio collected may ot give the ecessary assurace to seior maagers that the major hazard risks are uder cotrol. Review toleraces 72 The importace of followig up deviatios from toleraces was highlighted i Step 4.4. However, it could be that the tolerace has bee set at the wrog poit, eg set too leietly/strigetly, so the iformatio or data does ot adequately reflect reality. I such cases, the tolerace should be reviewed. Toleraces should be reviewed you do t always get it right first time! 73 If you would like more iformatio or wish to access HSE s process safety performace website please cotact: Developig process safety idicators Page 27 of 59

28 Health ad Safety Part 3: Worked example Steps 2, 3 ad 4 of the step-by-step guide 74 This worked example shows how Steps 2-4 of this step-by-step guide have bee applied to develop a suite of site-level process safety idicators for a top-tier COMAH bulk chemical storage site. 75 Refer to Steps 2, 3 ad 4 i Part 1 to help work through this example. Figure 15 Site layout showig the locatio of the two bulk tak storage facilities ad the adjacet dock from where deliveries by ship are made Developig process safety idicators Page 28 of 59

29 Health ad Safety Figure 16 The site ad activities 76 The compay operates a cotract bulk storage busiess hadlig liquid chemicals at a top-tier COMAH site comprisig of two separate tak farms (formerly owed ad operated as two busiesses), each cotaiig 80 bulk liquid taks. Most products are imported by ship ad discharged at a jetty o a caal ext to a estuary. Shore-side offloadig is udertake by compay persoel. Product is trasferred to site via fixed pipelies that ru across a private field ad a small public road. Both sites have road taker loadig gatries. 77 Ship-to-shore trasfer is udertake via articulated gatries with flexible hose coectio with screw fittig coupligs. Road taker fillig is from fixed overhead gatries with some bottom loadig usig flexible lies. Cliets cotract drivers fill their ow vehicles. Both sites are i operatio 24 hours a day. 78 All lies betwee the shore ad the istallatios are cleaed ad pigged regularly ad bulk taks ofte have to be emptied ad cleaed to allow for a chage of product. 79 Most taks are mild steel ad sit o cocrete bases, with earth buds for groups of taks ad some idividual brick buds. There is o-site productio of itroge ad utilities iclude a atural gas supply. 80 Highly flammable, toxic ad corrosive substaces are stored o site, icludig: Hexae Olefi Dichloromethae Heptae Lube oils Ethylee dibromide Gasolie DERV Trichloromethae Acetoe Fuel oil Styree Pyridie Methaol Caustic soda Propaol Sulphuric acid (98%) Overview of Steps The mai stages i selectig process safety idicators are: Step 2.2: Idetify the scope: idetify the hazard scearios that ca lead to a major icidet; ad idetify the immediate causes of hazard scearios. Step 3: Idetify the risk cotrol systems ad describe the desired safety outcome for each set a laggig idicator: Developig process safety idicators Page 29 of 59

30 Health ad Safety idetify the risk cotrol systems i place to prevet or mitigate the effects of the icidets idetified; idetify the desired safety outcomes of each risk cotrol system; ad set a laggig idicator for each risk cotrol system. Step 4: Idetify critical elemets of each risk cotrol system ad set a leadig idicator: idetify the most critical elemets of the risk cotrol system ad set leadig idicators for each elemet; set a tolerace for each leadig idicator; ad select the most relevat idicators for the site or activities uder cosideratio. Step 2.2: Idetify the scope Figure 17 Idetify what ca go wrog Step 2.2.1: Idetify the hazard scearios which ca lead to a major icidet 82 Describig the mai icidet scearios helps maitai a focus o the most importat activities ad cotrols agaist which idicators should be set. The scearios form a useful cross-check later o i Step 4, whe the critical elemets of risk cotrol systems to be measured are determied. 83 For this site, the mai process safety icidet scearios are: Storage taks: loss of liquid ito buds; loss of liquid outside of the bud; fire ad explosio: fire/explosio i a tak; fire i bud; fire outside bud. Docklies ad product trasfer to bulk storage taks: loss of liquid from docklies; loss of liquid from fixed pipelies (icludig coupligs, valves, pumps, ad flages); fire at the dockside ad from leaks i product trasfer pipelies. Road taker fillig: loss of liquid from trasfer lies; loss of liquid from a road taker; fire or explosio i a road taker; fire i taker fillig area. 84 These evets may lead to: a toxic gas cloud or toxic plume; a major fire o the site; Developig process safety idicators Page 30 of 59

31 Health ad Safety a major fire at the dockside; a major fire elsewhere off site, eg ext to pipelies; or evirometal damage. Step 2.2.2: Idetify the immediate causes of hazard scearios 85 The immediate cause is the fial failure mechaism that gives rise to a loss of cotaimet. This ca usually be cosidered as a factor that challeges the itegrity of plat or equipmet. 86 Hazard scearios may be caused by: failure of flexi hose, couplig, pump, valve, fixed pipe work or bulk tak, due to: wear; corrosio; damage; over/uder pressurisatio; or fire or explosio; overfillig of: bulk tak; or road taker; accidetal release: valves left ope, coectios ot made correctly. 87 Remember to review areas where there are kow problems ad past icidet/ ear-miss data to help idetify the primary causes. This step is importat as it is a prerequisite to decidig which risk cotrol systems are importat to prevet or cotrol the challege to itegrity. Primary causes iclude: Wear: physical abrasio; vibratio/stress. Corrosio: reactio of mild steel taks etc from exposure to the atmosphere; or icorrect product trasfer/storage or ieffective tak/pipe cleaig, resultig i a chemical reactio from a icompatible product i a tak/pipe or reactio with residues. Damage: collisio/impact, eg by vehicle, plat/equipmet; damage durig use; ship/taker driveaway (still attached); work activity, such as weldig/gridig; or iteral igitio withi taks or exteral fire affectig structural itegrity of the tak. Over/uder pressurisatio: icorrect product trasfer/storage resultig i lock-i pressure i pipe work, pipe/vet blockage; icorrect itroge blaketig of taks; ieffective tak cleaig leadig to a exothermic or edothermic reactio whe ew product is added. Developig process safety idicators Page 31 of 59

32 Health ad Safety Fire ad explosio: failure to cotrol igitio sources i flammable atmospheres: failure of earth bodig; failure to esure flow rate is restricted to prevet static accumulatio; icorrect equipmet selected; failure of itroge blaketig of taks; igitio from damaged or icorrectly selected hazard area electrical equipmet; failure to cotrol hot work; failure to stop product movemet durig electric storms; failure of emergecy fire-fightig provisio. Overfillig: icorrect product trasfer or icorrect flow rate resultig from: poor commuicatio; istrumetatio failure; icorrect product routig; or failure i tak gaugig. Accidetal release: leavig valves ope; icorrect couplig; or omissio of blakig plates etc. Step 3.1: Idetify the associated risk cotrol systems 88 Draw up a risk cotrol matrix as illustrated i Table 3, to help decide which risk cotrol systems are the most importat i cotrollig the challeges to itegrity idetified withi the icidet scearios. Figure 18 Idetify what risk cotrol systems are i place Developig process safety idicators Page 32 of 59

33 Health ad Safety Challeges to plat itegrity Table 3 Risk cotrol matrix Wear Corrosio Damage Over/uder pressurisatio Fire ad explosio Overfillig Other accidetal release Ispectio ad maiteace of: Flexi hoses, coupligs, pumps, valves, flages, fixed pipes, bulk taks Istrumetatio Earth bodig Tak vets Fire detectio ad fightig equipmet Staff competece, coverig: Selectio of compatible tak Selectio of route ad tak with adequate capacity Driver error Correct couplig, opeig/closig valves, startig pumps etc Suitable skills ad experiece to udertake ispectio ad maiteace tasks Emergecy arragemets Operatig procedures, coverig: Selectio of compatible tak Selectio of route ad tak with adequate capacity Correct couplig, opeig/closig valves, startig pumps etc Taker loadig Ship-to-shore pre- ad post-trasfer checks Emergecy arragemets Istrumetatio ad alarms Plat chage Selectio of correct specificatio material/equipmet Correct istallatio/implemetatio of chage Commuicatio Completio of pre- ad post-trasfer checks Istigatio of emergecy actio Permit to work Cotrol of hot work Prevetio of physical damage/liftig operatios Safe isolatios Plat desig Emergecy arragemets Developig process safety idicators Page 33 of 59

34 Health ad Safety Wear 89 The mai risk cotrol systems for maagig the mai hazard scearios are give i Table 4. Collated list of risk cotrol systems for the istallatio 90 The followig is a summary of the risk cotrol systems relevat to the cotrol ad mitigatio of the most sigificat major hazard scearios associated with the activities o site: plaed ispectio ad maiteace; staff competece; operatig procedures; istrumetatio/alarms; plat chage; plat desig; commuicatio; permit to work; earth bodig system; ad emergecy arragemets Table 4 Mai risk cotrol systems Hazard sceario Wear Corrosio Damage Over/uder pressurisatio Fire ad explosio Overfillig Risk cotrol systems Ispectio ad maiteace Staff competece Plat modificatio/chage, icludig temporary modificatios Plat desig Ispectio ad maiteace Staff competece Operatig procedures Commuicatio Plat chage Plat desig Staff competece (icludig cotractors) Operatig procedures Permit to work Workplace trasport Ispectio ad maiteace Plat desig Staff competece Operatig procedures Istrumetatio ad alarms Commuicatio Ispectio ad maiteace Permit to work Plat ispectio ad maiteace especially electrical equipmet Staff competece Operatig procedures Plat chage Plat desig Earth bodig system Staff competece Operatig procedures Istrumetatio/alarms Commuicatio Developig process safety idicators Page 34 of 59

35 Health ad Safety Hazard sceario Accidetal release Emergecy arragemets Risk cotrol systems Staff competece Operatig procedures Permit to work Commuicatio For ay of the scearios listed above, it is importat to mitigate the cosequeces of a icidet or loss of cotaimet. This risk cotrol system is therefore icluded i the overall list of systems i place at this establishmet Step 3: Idetify the outcome ad set a laggig idicator Figure 19 Idetify the outcome ad set a laggig idicator 91 It is vital to discuss ad agree the reaso why each risk cotrol system is i place ad what it achieves i terms of the scearios idetified. Without this agreemet, it will be impossible to measure success i deliverig this outcome. 92 It is best to phrase success i terms of a positive outcome supportive of the safety ad busiess priorities. The idicator ca the be set as a positive or egative metric to flag up whe this is achieved or whe ot. As success should be the ormal outcome, choosig a egative metric will guard agaist beig swamped by data (reportig by exceptio). 93 The followig questios may be helpful: Why do we have this risk cotrol system i place? What does it deliver i terms of safety? What would be the cosequece if we did t have this system i place? 94 The idicator set should be directly liked to the agreed risk cotrol system outcome ad should be able to measure the success/failure at meetig the outcome. Step 4: Idetify the critical elemets of each risk cotrol system ad set leadig idicators 95 There are too may elemets to a risk cotrol system for each to be measured. It is ot ecessary to moitor every part of a risk cotrol system. Cosider the followig factors whe decidig which aspects to iclude: Developig process safety idicators Page 35 of 59

36 Health ad Safety Which activities or operatios must be udertake correctly o each ad every occasio? Which aspects of the system are liable to deteriorate over time? Which activities are udertake most frequetly? 96 From this, the critical elemets of each risk cotrol system importat to deliverig the outcome ca be idetified. Figure 20 Idetify critical elemets ad set leadig idicators Examples of idicators for each risk cotrol system 97 The followig sectio illustrates how Steps 3 ad 4 are used to idetify idicators for each importat risk cotrol system i the process safety maagemet system i place at the istallatio. Iitially, a umber of outcomes ad subsequet cadidate laggig ad leadig idicators are geerated. These are the prioritised to select just oe laggig idicator ad a maximum of two leadig idicators for each risk cotrol system. The fial selectio for all the risk cotrol systems is give i Table 3. Developig process safety idicators Page 36 of 59

37 Health ad Safety Risk cotrol systems RCS: Ispectio ad maiteace Desired safety outcomes No uexpected loss of cotaimet due to failure of flexi hoses, coupligs, pumps, valves, flages, fixed pipes, bulk taks or istrumetatio. No uexpected loss of cotaimet due to blockages i tak vets. No fires or explosios due to static electric igitio. No fires or explosios caused by a source of igitio from faulty or damaged hazardous area electrical equipmet. Fire detectio ad fire-fightig equipmet is available ad i good coditio. Potetial laggig idicators Number of uexpected loss-of-cotaimet icidets due to failure of flexi hoses, coupligs, pumps, valves, flages, fixed pipes, bulk taks or istrumetatio. Number of loss-of-cotaimets due to blockages i tak vets. Number of fires or explosios that result from a static electric igitio. Number of fires or explosios caused by a source of igitio from faulty or damaged hazardous area electrical equipmet. Number of icidets of fire/explosio where fire detectio or fire-fightig equipmet failed to fuctio as desiged. Critical elemets The specificatio of scope ad frequecy of the ispectio ad maiteace system. This should be based o how safety critical the item is, ad o the degree of challege preseted to the system itegrity, or to comply with the maufacturer s or supplier s istructios. Safety critical plat ad equipmet (ie flexi hoses, coupligs, pumps valves, flages, fixed pipes, bulk taks) are ispected for wear ad damage or malfuctio withi the specified period. Faults are fixed withi specified timescales ad repairs ad improvemets meet plat desig stadards. A log of fidigs kept eablig tredig. Potetial leadig idicators Percetage of safety critical plat/equipmet that performs withi specificatio whe ispected. Percetage of safety critical plat ad equipmet ispectios completed to schedule. Percetage of maiteace actios idetified that are completed to the specified timescale. Percetage of fault tredig carried out to schedule. Note: What costitutes a safety critical item should have bee idetified while cosiderig major accidet scearios. Developig process safety idicators Page 37 of 59

38 Health ad Safety Fial selectio of idicators It is ofte difficult to choose oly a limited umber of idicators from the rage of potetial cadidates geerated withi Steps 3.3 (laggig idicators) ad Steps 4.2 (leadig idicators). To prioritise, cosider: Is the outcome measurable, ie ca a successful or adverse outcome easily be detected? Ask would you kow whe this had happeed? Is a critical cotrol or activity measurable, ie ca the correct operatio of a critical cotrol easily be detected? How ofte ca each be measured? For laggig idicators: how much iformatio is it likely to geerate? Aim for reportig by exceptio. For leadig idicators: how susceptible are critical elemets of the system to rapid deterioratio? Will the idicator highlight abormal coditios before a serious evet occurs? Recheck that the idicators: support the outcomes set; ad that leadig idicators lik to the laggig idicator. What is the overall importace, i terms of safety ad busiess priorities, of the iformatio provided by the idicator? Ca the iformatio be readily collected, ie is it already recorded somewhere i the orgaisatio, eg oted i quality logs/records or process cotrol records? Developig process safety idicators Page 38 of 59

39 Health ad Safety Desired safety outcomes No uexpected loss of cotaimet due to failure of flexi hoses, coupligs, pumps, valves, flages, fixed pipes, bulk taks or istrumetatio RISK Plat or equipmet i usafe coditio Process cotrols Ispectio ad maiteace systems OUTPUTS INPUTS LEADING INDICATORS LAGGING INDICATOR Number of uexpected loss of cotaimet icidets due to failure of flexi hoses, coupligs, pumps, valves, flages, fixed pipes, bulk taks or istrumetatio Percetage of safety critical plat/equipmet that performs to specificatio whe ispected or tested Percetage of maiteace actios idetified which are completed to specific timescale Justificatio This idicator covers the widest rage of equipmet where most problems are likely to occur. This idicator could be arrowed dow further to focus o specific items of plat cosidered to preset the highest risk, eg flexible hoses Laggig idicators discouted Tak vet blockages: these evets ca be captured i the idicator coverig the failure of bulk taks. Static igitio: it ca be difficult to be certai whether a fire/explosio occurred as a result of a static electric igitio. Such evets should be quite rare ad if they do occur they ca be picked up as part of icidet ivestigatio. Number of fires or explosios caused by a source of igitio from faulty or damaged hazardous area electrical equipmet: these should be very rare evets ad so of little beefit due to the low frequecy. Fire detectio ad fire-fightig equipmet: such evets are likely to be rare. Idetificatio of failigs i detectio ad fire-fightig equipmet is better covered uder RCS: Emergecy arragemets. Justificatio Performace of safety critical equipmet This idicator shows the reliability of plat ad equipmet but also provides the meas to explore why equipmet may ot have performed as iteded, Also, to arrive at this iformatio, the scheduled ispectio actios will eed to have bee completed Completio of maiteace actios It is importat to get a complete picture of ay backlog of faults associated with safety critical plat. Agai, the ispectio ad maiteace schedule will have to have bee udertake to obtai this iformatio Leadig idicators discouted Progress with ispectio schedule: this is a frequetly used idicator. However, the idicator o performace of safety critical equipmet is much closer to the desired outcome. Fault tredig: although fault tredig is importat, measurig the percetage of the tredig actios completed may ot provide good assurace that problems with reliability are beig rectified. Figure 21 Ispectio ad maiteace idicators Developig process safety idicators Page 39 of 59

40 Health ad Safety RCS: Staff competece Outcomes Operators ad cotractors have the required kowledge ad skills to eable effective product trasfer from ship, to bulk tak, to road taker. Operators ad cotractors have the required kowledge ad skills to adequately clea bulk taks/pipelies before/after a product trasfer. Operators ad cotractors have the required kowledge ad skills to take emergecy actio followig a product trasfer that results i a fire/explosio. Potetial laggig idicators Number of times product trasfer does ot proceed as plaed due to errors made by staff without the ecessary uderstadig, kowledge or experiece to take correct actios. Number of times a bulk tak is over/uder pressurised due to iadequate cleaig by staff without the ecessary uderstadig, kowledge or experiece. Number of times ieffective actio is take followig a product trasfer resultig i fire/explosio, due to lack of uderstadig, kowledge or experiece to take correct emergecy actio. Critical elemets Iformatio ad traiig coverig: hazardous properties of products; ship-to-shore commuicatio systems; pre-trasfer checks; product trasfer cotrols ad moitorig; post-trasfer checks; emergecy actios. Job-specific kowledge ad relevat experiece of: substaces; work processes; hazards; ad emergecy actios. Potetial leadig idicators Percetage of staff ivolved i product trasfers who have the required level of competece ecessary for the successful trasfer ad storage of products. Note: The compay will determie the type of traiig ad experiece ecessary to achieve competece. Developig process safety idicators Page 40 of 59

41 Health ad Safety Desired safety outcomes Operators ad cotractors have the required kowledge ad skills to eable effective product trasfer from ship, to bulk taker, to road trasfer RISK Critical tasks udertake dagerously Process cotrols Staff competece systems: selectio, iformatio, traiig ad assessmet OUTPUTS INPUTS LEADING INDICATOR LAGGING INDICATOR Number of times product trasfer does ot proceed as plaed due to errors made by staff without the ecessary uderstadig, kowledge or experiece to take the correct actios Justificatio Percetage of staff ivolved i product trasfer who have the required level of competece ecessary for the successful trasfer ad storage of products Justificatio This was the oly potetial leadig idicator chose This idicator chose liks closely to the outcome ad captures the most commo ad importat aspect of why the cotrol system is i place Laggig idicators discouted Tak over/uder pressurisatio: esurig competece for tak cleaig is ulikely to be a complex or demadig issue that may frequetly give rise to icidets caused by lack of competece. It is therefore more appropriate to measure other aspects of competece. Emergecy actio: this is better covered uder RCS: Emergecy Arragemets. Figure 22 Staff competece idicators Developig process safety idicators Page 41 of 59

42 Health ad Safety RCS: Operatig procedures Desired safety outcomes Correct tak selectio ad operatio of equipmet durig product trasfer from ship, to bulk tak, to road taker. Correct cleaig, isolatio ad equipmet shutdow after product trasfer. Potetial laggig idicators Number of times product trasfer does ot occur as plaed due to icorrect/ uclear operatioal procedures. Number of times a bulk tak is over/uder pressurised due to iadequate cleaig by staff workig with uclear/icorrect operatioal procedures. Number of times ieffective actio is take followig a product trasfer resultig i fire/explosio due to icorrect/uclear operatioal procedures. Critical elemets Procedures cotai correct scope (key actios ad tasks icludig emergecy actio) ad/or sufficiet detail. Procedures are clearly writte/easily uderstood. Procedures are kept up to date. Potetial leadig idicators Percetage of safety critical tasks for which a writte operatioal procedure covers the correct scope (key actios ad tasks icludig emergecy actio) ad/or sufficiet detail. Percetage of procedures that are clearly writte ad easy to uderstad. Percetage of procedures that are reviewed ad revised withi the desigated period. Developig process safety idicators Page 42 of 59

43 Health ad Safety Correct tak selectio ad operatio of equipmet durig product trasfer from ship, to bulk tak, to road trasfer RISK Critical tasks udertake dagerously Process cotrols Operatioal procedures: writte istructios, work practices OUTPUTS INPUTS LEADING INDICATORS LAGGING INDICATOR Number of times product trasfer does ot occur as plaed due to icorrect/uclear operatioal procedures Justificatio This idicator will detect huma error liked to the quality of operatioal procedures for a wide rage of activities associated with the outcome Laggig idicators discouted Tak over/uder pressurisatio: it is better to focus o a wider set of activities reliat o good operatig procedures as covered by the idicator chose, because this will provide a more comprehesive picture of the suitability of writte procedures. Emergecy actio: this is better covered uder RCS: Emergecy Arragemets. Percetage of procedures which are reviewed ad revised withi the desigated period Justificatio This is the oly idicator that measures the quality of a procedure oce it has bee agreed ad implemeted Leadig idicators discouted Scope ad clarity of procedures: this should be esured by a oe-off check carried out before the procedure is first itroduced ad caot be usefully moitored o a ogoig basis. Figure 23 Operatig procedure idicators Developig process safety idicators Page 43 of 59

44 Health ad Safety RCS: Istrumetatio ad alarms Desired safety outcomes Safety critical istrumetatio ad alarms correctly idicate whe process coditios exceed safe operatig limits. Potetial laggig idicators Number of safety critical istrumets/alarms that fail to operate as desiged, either i use or durig testig. Number of times a bulk tak or a road taker is overfilled due to failure i the level idicator or alarms. Number of times a bulk tak or a road taker is over/uder pressurised due to failure i a level idicator or alarms. Number of times product is trasferred at the wrog flow rate or pressure due to failure i a flow meter/pressure gauge or alarms. Critical elemets Istrumets correctly idicate process coditios. Alarms activate at desired set poits. Istrumets ad alarms are tested ad calibrated to desig stadard. Repairs to faulty istrumets ad alarms are carried out withi specified time period. Potetial leadig idicators Percetage of safety critical istrumets ad alarms that correctly idicate the process coditios. Percetage of safety critical istrumets ad alarms that activate at the desired set poit. Percetage of fuctioal tests of safety critical istrumets ad alarms completed to schedule. Percetage of maiteace actios to rectify faults to safety critical istrumets ad alarms completed to schedule. Developig process safety idicators Page 44 of 59

45 Health ad Safety Desired safety outcomes Safety critical istrumetatio ad alarms correctly idicate whe process coditios exceed safe operatig limits RISK Plat or process outside safe operatig coditios Process cotrols Operatioal procedures: istrumetal ad alarm systems OUTPUTS INPUTS LEADING INDICATORS LAGGING INDICATOR Number of safety critical istrumets/alarms that fail to operate as desiged, either i use or durig testig Justificatio This idicator will detect all failures i the istrumets ad alarm systems, regardless of whether this leads to a loss of cotaimet Laggig idicators discouted Number of times a bulk tak or a road taker is overfilled due to failure i a level idicator or alarm. Number of times a bulk tak or a road taker is over/uder pressurised due to failure i a level idicator or alarm. Number of times product is trasferred at the wrog flow rate or pressure due to failure i a flow meter, pressure gauge or alarm. All of these idicators are a subset of the preferred idicator selected. Figure 24 Istrumetatio ad alarm idicators Percetage of fuctioal tests of safety critical istrumets ad alarms completed to schedule Percetage of maiteace actios to rectify faults to safety critical istrumets ad alarms completed to schedule Justificatio These are the mai iputs to esure that istrumets ad alarms cotiue to fuctio as desiged Leadig idicators discouted Percetage of safety critical istrumets ad alarms that correctly idicate the process coditios. Percetage of safety critical istrumets ad alarms that activate at the desired set poit. These two idicators will be covered withi the fuctioal testig ad maiteace system. Note: Istrumetatio ad alarm system fuctioig ca be cosidered as a importat part of a wider ispectio ad maiteace system ad the idicators set i this sectio could be readily icorporated ito the broader ispectio/ maiteace scheme ad measured as part of that system. Developig process safety idicators Page 45 of 59

46 Health ad Safety RCS: Plat chage Desired safety outcomes Followig a chage of specificatio of flexi hoses, coupligs, pumps, fixed pipes, bulk taks, they cotiue to operate i a optimised state. Potetial laggig idicators Number of icidets ivolvig loss of cotaimet of hazardous material or fire/ explosio due to failure of flexi hoses, coupligs, valves, pumps, fixed pipes, bulk taks, where plat chage was foud to be a cotributory factor. Number of times equipmet or plat is below the desired stadard due to deficiecies i plat chage. Critical elemets Scope ad defiitio are properly set out (temporary/permaet chages). Risk assessmets are udertake before plat chage. Chages/outcomes are documeted. Chages are authorised before beig implemeted. Post-chage checks are carried out (plat foud to be performig as desiged). Potetial leadig idicators The scope ad defiitio of the plat chage system is properly specified. Percetage of plat chage actios udertake where a adequate risk assessmet was carried out before chage. Percetage of plat chage actios udertake where chages/outcomes were documeted. Percetage of plat chage actios udertake where authorisatio was give before implemetatio. Percetage of plat chage actios udertake where post-chage checks were carried out. Developig process safety idicators Page 46 of 59

47 Health ad Safety Desired safety outcomes RISK Process cotrols Plat chage system OUTPUTS INPUTS LAGGING INDICATOR Number of times equipmet or plat is below the desired stadard due to deficiecies i plat chage Justificatio This idicator will also iclude loss of cotaimet icidets where these are due to deficiet plat or equipmet followig a plat chage Laggig idicators discouted Number of icidets ivolvig loss of cotaimet of hazardous material or fire/explosio due to failure of flexi hoses, coupligs, valves, pumps, fixed pipes, bulk taks where deficiecy i plat chage was foud to be a cotributory factor. LEADING INDICATORS Percetage of hazard ad operability (HAZOP) actios associated with plat chage completed Percetage of plat chage actios udertake where authorisatio was give before implemetatio Justificatio Completio of risk assessmets This is a critical aspect of plat chage upo which the outcome is depedet. It is likely to be easy to measure ad capture the relevat iformatio Retrospective authorisatios This idicator will show where potetially dagerous circumstaces may be created due to a eed to implemet chages quickly The first idicator will capture these sorts of evets automatically if the cause is attributed to a fault followig a plat chage. Leadig idicators discouted Documetatio of chages. Post-chage checks. Both of these idicators are importat ad it is relatively easy to collect iformatio agaist them. However, they were ot selected simply to keep the overall umber of idicators to a reasoable level. Figure 25 Plat chage idicators Developig process safety idicators Page 47 of 59

48 Health ad Safety RCS: Commuicatio Desired safety outcome RCS: Plat desig Plat operatio optimised with equipmet ruig efficietly ad reliably with o uexpected breakdow due to deficiecies i the plat desig ad specificatio. Potetial laggig idicator Number of plat breakdows or icidets ivolvig loss of cotaimet of hazardous material or failure of safety critical plat/equipmet where deficiecy i plat desig was foud to be a cotributory factor. Critical elemets Whe selectig suitable equipmet, cosider: stadards ad codes; compatibility of materials with products; aticipated duty ad degradatio methods; pressure systems; life expectacy; electrical itegrity ad equipmet bodig; ad ease of ispectio ad maiteace. Potetial leadig idicators Percetage of equipmet ad plat associated with product trasfer that meets curret stadards ad codes. O commissioig: percetage of safety critical items of plat or equipmet which comply with specified desig stadards. O a periodic basis: percetage of safety critical items of plat or equipmet which comply with curret desig stadards or codes. Developig process safety idicators Page 48 of 59

49 Health ad Safety Desired safety outcomes Plat operatio optimised with equipmet ruig efficietly ad reliably with o uexpected breakdow due to deficiecies i the plat desig ad specificatio RISK Plat i usafe coditio Process cotrols Plat desig system OUTPUTS INPUTS LEADING INDICATOR LAGGING INDICATOR Number of icidets ivolvig plat breakdow, loss of cotaimet of hazardous material or failure of safety critical plat/equipmet where deficiecy i plat desig was foud to be a cotributory factor Justificatio This will focus o the satisfactory operatio of plat or equipmet Percetage of safety critical items of plat or equipmet which comply with curret desig stadards or codes Note: This should be doe o a sample or periodic basis Justificatio The plat chage RCS should esure items of plat replaced still comply with curret desig stadards. However, this idicator will pick up items of plat equipmet that o loger comply with curret desig stadards/codes because of their age, or recet chages i stadards/codes Leadig idicators discouted O commissioig: the percetage of safety critical items of plat or equipmet which comply with specified desig stadards. O a periodic basis: percetage of critical items of plat or equipmet which comply with curret desig stadards or codes. These are oe-off checks that do ot beefit from beig measured throughout the year. Figure 26 Plat desig idicators Developig process safety idicators Page 49 of 59

50 Health ad Safety RCS: Commuicatio Desired safety outcomes Effective maagemet of product trasfer* ad storage ad effective warig of problems i time to take remedial actio. Effective remedial actio is take i the evet of overfill, fire/explosio or accidetal release. * Product trasfer icludes all aspects ad actios associated with the successful trasfer of hazardous material from ship to shore ito bulk storage or betwee bulk taks ad the fillig or discharge of road takers. Potetial laggig idicators Number of times product trasfer does ot proceed as plaed due to breakdow i commuicatio systems. This outcome could be subdivided ito two further idicators, ie: umber of times overfillig occurs due to a breakdow i commuicatio systems; umber of times accidetal releases occur due to breakdow i commuicatio systems. Percetage of mitigatig systems which failed to operate followig a overfill, fire/explosio or accidetal release due to failure to adequately commuicate iformatio relatig to the emergecy. Critical elemets Critical commuicatios udertake: Cofirmatio of pre-trasfer checks type, properties, quatity of material to be trasferred. Cofirmatio of route itegrity, coectios made, valves ope. Authorisatio to start trasfer. Cofirmatio of start/rate of trasfer. Cofirmatio of cotaimet itegrity checks carried out durig trasfers. Post-trasfer cofirmatio of pumps stopped, valves closed. Potetial leadig idicators Percetage of product trasfers where cofirmatio of the completio of pretrasfer checks was adequately commuicated. Percetage of product trasfers where cofirmatio of route itegrity, coectios made, valves ope etc was adequately commuicated. Percetage of product trasfers where authorisatio to start trasfer was successfully completed before trasfer commeced. Percetage of product trasfers where cofirmatio of start ad rate of trasfer were successfully completed before trasfer commeced. Percetage of product trasfers where cofirmatio of start ad rate of trasfer were successfully completed before trasfer commeced. Percetage of cotaimet itegrity checks carried out durig trasfers. Percetage of post-trasfer checks udertake to cofirm that pumps have stopped ad valves are isolated or closed. Developig process safety idicators Page 50 of 59

51 Health ad Safety Desired safety outcomes Effective maagemet of product trasfer ad storage ad effective warig of problems i time to take remedial actio RISK Activities ot properly co-ordiated Process cotrols OUTPUTS INPUTS LEADING INDICATORS LAGGING INDICATOR Number of times product trasfer does ot proceed as plaed due to a breakdow i commuicatio systems Justificatio The more geeric idicator has bee chose, as overfillig or a accidetal release could ot be cosidered as a plaed, successful product trasfer. Therefore, both these evets would be captured withi the first idicator. Also this broader category offers the opportuity to capture a wider series of evets, some of which may ot have bee fully cosidered whe formulatig the idicators Percetage of product trasfers where authorisatio to start trasfer was successfully completed before the trasfer commeced Percetage of post-trasfer checks udertake to cofirm that pumps stopped, valves are isolated or closed Justificatio This first idicator automatically captures all the other checks that should be completed before authorisatio is issued. The secod esures that the plat is secured i a safe coditio after the activity Laggig idicators discouted Failure of mitigatio: icidets with this type of cause are likely to be very rare. This is better covered uder RCS: Emergecy arragemets. Figure 27 Commuicatio idicators Leadig idicators discouted Percetage of product trasfers where cofirmatio of completio of pre-trasfer checks was adequately commuicated. Percetage of product trasfers where cofirmatio of route itegrity, coectios made, valves ope etc was adequately commuicated. Percetage of product trasfers where cofirmatio of start ad rate of trasfer were successfully completed before product trasfer commeced. Percetage of product trasfers where the cofirmatio of start ad rate of trasfer were successfully completed before product trasfer commeced. Agai, esure that the fial authorisatio is issued automatically ad icludes the checks listed above. Developig process safety idicators Page 51 of 59

52 Health ad Safety RCS: Permit to work Desired safety outcome High-risk maiteace activities are udertake i a way that will ot cause damage/ijury. Potetial laggig idicator Number of icidets where plat/equipmet could be damaged due to failure to cotrol high-risk maiteace activity. Critical elemets Scope of activities covered by the permit-to-work system is clearly idetified. Permits specify the hazards, risks ad cotrol measures, icludig isolatios. Permits are oly issued followig suitable authorisatio procedures. Permit/task is time limited. Work is coducted as per permit coditios, icludig demostratio of satisfactory completio of work. Potetial leadig idicators The scope ad defiitio of the permit-to-work system has bee properly specified. Percetage of permits to work issued where the hazards, risks ad cotrol measures were adequately specified. Percetage of permits issued where the time period for completig the task is specified. Percetage of work coducted i accordace with permit coditios ad where completio of work has bee demostrated. Developig process safety idicators Page 52 of 59

53 Health ad Safety Desired safety outcomes High-risk maiteace activities are udertake i a way that will ot cause damage/ijury RISK Maiteace work udertake usafely Process cotrols Permit-to-work system OUTPUTS INPUTS LEADING INDICATORS LAGGING INDICATOR Number of icidets where the plat/equipmet could be damaged due to failure to cotrol high-risk maiteace activity Justificatio Focusig o plat damage rather tha persoal ijury maitais a focus o process safety issues Percetage of permits to work issued where the hazards, risks ad cotrol measures were adequately specified Percetage of work coducted i accordace with permit coditios Note: These are likely to be measured o a sample basis Justificatio Settig out the hazards ad cotrols is a key part of a permit ad a prerequisite for safe workig. The mai purpose for a permit is to set out a safe method of work i advace (if there is oe). Kowig that work is coducted i accordace with the permit coditios is therefore the most importat aspect Leadig idicators discouted The scope ad defiitio of the permit-to-work system has bee properly specified: this is a oeoff activity ad ulikely to deteriorate over time. Time period specified: although this is importat, it ot cosidered as critical as authorisatio before work starts. Figure 28 Permit-to-work idicators Developig process safety idicators Page 53 of 59

54 Health ad Safety RCS: Emergecy arragemets Desired safety outcome The impact of a major icidet durig product trasfer or storage is miimised as far as possible. Potetial laggig idicator Number of elemets of the emergecy procedure that fail to fuctio to the desiged performace stadard. System critical elemets Emergecy pla covers all relevat operatios. Testig of emergecy pla. Raisig alarm. Shutdow/isolatio procedures. Fire fightig startig fire pumps. Commuicatio with ship/istallatio cotrol rooms, ad immediate site eighbours. Evacuatio ship/dock/site. Commuicatio with the dock operatig compay. Commuicatio with emergecy services. Potetial leadig idicators Percetage of shutdow/isolatio systems that fuctioed to the desired performace stadard whe tested. Percetage of times the fire-fightig pumps started automatically ad pressurised the fire mai whe the alarm was tested. Percetage of staff/cotractors who take the correct actio i the evet of a emergecy. Percetage of staff/cotractors traied i emergecy arragemets. Percetage of emergecy exercises completed to schedule. Developig process safety idicators Page 54 of 59

55 Health ad Safety Desired safety outcomes The impact of a major icidet durig product trasfer or storage is miimised as far as possible RISK Damage ad ijuries i the evet of a major accidet are greater tha reasoably expected Process cotrols Emergecy arragemets OUTPUTS INPUTS LEADING INDICATORS LAGGING INDICATOR Number of elemets of the emergecy procedure that fail to fuctio to the desiged performace stadard Justificatio Major icidets are very rare o ay particular site. It is difficult to measure whether the adverse outcomes of a icidet are worse tha expected Percetage of shutdow/isolatio systems which fuctioed to the desired performace stadard whe tested. Percetage of staff/cotractors who take the correct actio i the evet of a emergecy Justificatio Both of these idicators show the extet to which elemets of the emergecy systems performed as expected Leadig idicators discouted Percetage of times the fire-fightig pumps started automatically ad pressurised the fire mai whe the alarm was tested: this is a fairly arrow set of circumstaces which would already be captured by the first idicator. Percetage of staff/cotractors traied i emergecy arragemets: this idicator does t provide iformatio o the fuctio of the system ad so is further away from the outcome. Percetage of emergecy exercises completed to schedule: this idicator does t provide iformatio o the fuctio of the system ad so is further away from the outcome. Figure 29 Emergecy arragemet idicators Developig process safety idicators Page 55 of 59

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