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Process Safety is a Leadership Issue -Sonya Lee Sept 2012
1: How are we doing?
About PTAI: We help companies answer this question:
We are
doing great!
See how
weā€™ve grown
since last year
To which most companies typically respondā€¦
Last Year This Year
Growth
1: How are we doing?
We are
doing great!
Really?
ā€¦which begs another question: ā€œCompared to whom?ā€
Process Safety is an industry leadership issue:
Is HSE the right department to handle it?
ā€¢
ā€¢
ā€¢
ā€¢
1
2
3
Process Safety is an industry leadership issue:
Q: What do Ocean Ranger, Piper Alpha, and
Deepwater Horizon have in common?
1. They were the worst
marine disasters in their
respective countries
2. They were a result of Process
Safety failures
3. They impacted the entire industry
Answer:
While we may argue over who was at fault, one
thing we cannot dispute:
All these accidents were preventable
There is confusion on what constitutes Process Safety
What is
Process
Safety?
How do you
measure it?
How do you
manage it?
So whatā€™s the problemo?
There is no common understanding even
amongst the Drillers and their customers
Unlike Personnel Safety where the connection or the link between
the cause and the effect is painfully obviousā€¦.
Hereā€™s another problemā€¦
ā€¦when it comes to Process Safety,
it is just not so
In the past, we have fixated on all kinds of slips, trips, and fallsā€”things that are
biased towards Personnel Safety and not towards major hazard precursorsā€”the
stuff Process Safety is made up of
So what can we learn from our pastā€¦
We focus on all kinds of slips, trips, and fallsā€”things that are
biased towards Personnel Safety and not towards major
hazard precursorsā€”the stuff Process Safety is made up ofLesson 1. We are measuring the WRONG things
To reward and promote behavior our management systems rely on tools such as
LTIRs and TRIRsā€”indicators of Personnel Safetyā€”without paying similar attention
to tools that measure Process Safety performance
Lesson 2. We are using the WRONG tools
Our safety performance appraisal systems rely
on data that is after the fact.
It is lagging
Lesson 3. They are facing in the WRONG Direction
measuring the WRONG things
ā€¦using the WRONG tools that are
ā€¦facing the WRONG direction
Bottom-lineā€¦
We are
So where do we go from here?
Unfortunately, Compliance, while necessary,
is not the answer
Option 1: Do as told
Here is an example of what the being ā€œin complianceā€ audit
would look like
Seriously?
Option 2:
Think outside the box
ā€¦by doing things we havenā€™t
done beforeā€¦such as
collaborating amongst ourselves
In addition, we can also learn from the upstream
Operators and the downstream Chemical industries
Process Safety is a Leadership Issue -Sonya Lee Sept 2012
1. They have a formal platform in place that allows them to compare
their entire business performance with their competitors
2. They compare their process safety performance through
another benchmarking program designed specifically
around the CCPSā€™s Risk Based Process Safety Guidelines
2. We need a different set of leading indicators
to measure the integrity of our operations
1. We need a similar platform that allows comparing our
design, engineering, operating, and maintenance practices
so that we can also learn from each otherā€™s best practices
So whatā€™s holding us back?
Over the years we have
accumulated some baggage that
needs to be shed
ā€¢
Process Safety is an industry leadership issue:
Right?
Well Defined
Structured
Steady State
Routine
Less Risky
PredictableProcess Safety is a downstream industry issue since their operations areā€¦..
Ill-defined
Un-structured
Risky
Unpredictable
Dynamic
Non-routine
Itā€™s time to formally define Process Safety
1. What does it look like? 2. What does it do? 3. How does it do that?
In order for us to remember it better, we can breakdown
the definition into answers to these three simple questions:
1. It is a disciplined framework
2. For managing the integrity of hazardous
operating systems and processes
3. By applying good Design principles, Engineering, Operating, and
Maintenance practices
D E O Mar i
Just rememberā€¦
ā€¦a disciplined
framework
by applying good
Design principles,
Engineering,
Operating, and
Maintenance
practices
for managing
integrity of
hazardous
operating systems
and processes
Once again, Process Safety is defined asā€¦
1. What does it look like? 2. What does it do? 3. How does it do that?
So, do you still
believe Process
Safety doesnā€™t apply
to us?
Process Safety is a Leadership Issue -Sonya Lee Sept 2012
Unfortunately, thatā€™s not true
It doesnā€™t matter who is at fault;
the whole industry is affected once we have a
catastrophic disaster
Which means, whether we like it or not, ā€œprocess safetyā€ problems
of our peers are our problems as well
Holy S#&%..!!
ā€¢
Process Safety is an industry leadership issue:
In our line of work do we have conflicts between Design, Engineering, Operations, and
Maintenance people?
And do you think our HSE person has the power and the resources to prevent or resolve them?
Mama..!!!
If not HSEā€™s then whose baby is it anyway?
Mamaā€¦..!!!!
Mamma
...!!!
To better understand why Process Safety is a leadership issue
let us look at where are we in this journey
5. GENERATIVE
Safety is how we do business round here
3. CALCULATIVE
We have systems in place to manage all
hazards
2. REACTIVE
Safety is important, we do a lot every time
we have an accident
1. PATHOLOGICAL
Who cares as long as we are not caught
In his research, Dr. Patrick Hudson
mentions five stages that
differentiate organizational safety
cultures
4. PROACTIVE
We work on the problems that we still find
Look at the nets in the picture here. Wonder why they are there?
Let us look at an example of a company from another industry
that is at the bottom of this ladder
Between 2008 and 2010 , 19 committed
suicide by ā€œjumping or fallingā€ off of its
factory or dormitory buildings
Four died in two factory explosions and
another 77 who were injured
59 injured during a December 2011 plant
explosion
Workers have to sign a ā€œno suicideā€ pact
and the families have to sign ā€œno
litigationā€ agreement
They are there to ā€œcatchā€ workers jumping off of the top floors of this
manufacturing plant in China in an attempt to prevent them from
committing suicideā€”a rather ingenious response devised by the
company leadership to combat workforce reaction to its inhuman
working conditions
The Leader
Workplace Injury Rate down by 90%
Within a year Profits reach record High
By the end of his tenure Annual Net Income 5 times larger than before he arrived
Market Capitalization $27 Billion an eightfold increase
Safest company in the world. More likely to get hurt in a software firm designing graphic animations
than here working with 2000 degrees Fahrenheit of molten aluminum
And here is one that arguably at the top of the ladder
The changes in a company after a new CEO takes over and declares
Safety as his TOP priority
ā€œThere should never be a trade-off between values and
economics. Values should always winā€
ā€œif you want to understand how Alcoa is doing, you need to
look at our workplace safety figures. Profits donā€™t matter as
much as safetyā€
ā€œI went to Alcoa with a burning fireā€¦to demonstrate that it
is possible for a truly great organization to be value-based
without any reservationsā€
The new leader
Process Safety is an industry leadership issue:
Is HSE the right department to handle it?
Why do we continue to focus on Personnel Safety even
though several major disaster investigations have shown that
Process Safety issues are the root cause?
First, the bad news
ā€¦with some Good news and some Bad news
Time to wrap upā€¦.
Why do we continue to focus on Personnel Safety even though several major
disaster investigations have shown that Process Safety issues are the root cause?
First, the bad news
Process Safety is hard to understand
!?!
Becauseā€¦ā€¦
Process Safety is
difficult to measure
!@??
There is little consensus on what constitutes Process Safety let alone how to
manage it
What theā€¦
!&@!
Regulators
Clients
Stock Markets
Even though our stakeholders agree on the importance of safety, they have
different interpretations at operational level
Yipeeā€¦!!!!!!
Process Safety is a Leadership Issue -Sonya Lee Sept 2012
Process Safety is a Leadership Issue -Sonya Lee Sept 2012
All it takes is just one person to do whatā€™s right
for the rig to stop the unfolding disaster from
following through
ā€¦all it takes is just one person to do whatā€™s right for the rig to
stop the unfolding disaster from following through
Questions/ Comments/ Suggestions?
ā€œBe sure to let go before
it hits the shredderā€
Thank You
Vivek Bhatnagar
Phillip Townsend Associates, Inc., Houston, TX
onlyvivekbhatnagar@gmail.com
Lieutenant Colonel (ret.) Vivek Bhatnagar is a veteran with over 21 years of service in the Indian Armed Forces. He retired
in 2006 after serving as a Commanding Officer of an Electronic Warfare Regiment.
For the past 6 years Vivek has been working in the energy, chemical, and petrochemical sectors in the US with an
emphasis on Process Safety and Operational Excellence, and more recently with its relevance to the global offshore
drilling industry.
Vivek is an Engineer and an MBA. He is a graduate from the National Defense Academy and the Indian Military Academy.
He did his B.Tech. from the College of Military Engineering and his MBA from Babson College in Massachusetts, US. In
addition, Vivek is a qualified commando, physical trainer, and an instructor in ADP systems.
Vivekā€™s papers on process safety have been selected for presentations at the IADC, Society of Petroleum Engineers, the
International Association of Oil and Gas Producers, and the Canadian Society of Chemical Engineers conferences in North
America, Europe, Australia, and Asia. In addition, he has authored several articles for the BusinessWeek. This presentation
from Colonel Bhatnagar includes excerpts from his upcoming book on process safety and its relevance to the drilling
industry.
2012 Bio-data: Vivek Bhatnagar
Phillip Townsend Associates, Inc.

More Related Content

Process Safety is a Leadership Issue -Sonya Lee Sept 2012

  • 2. 1: How are we doing? About PTAI: We help companies answer this question:
  • 3. We are doing great! See how weā€™ve grown since last year To which most companies typically respondā€¦ Last Year This Year Growth
  • 4. 1: How are we doing? We are doing great! Really? ā€¦which begs another question: ā€œCompared to whom?ā€
  • 5. Process Safety is an industry leadership issue: Is HSE the right department to handle it? ā€¢ ā€¢ ā€¢
  • 6. ā€¢ 1 2 3 Process Safety is an industry leadership issue:
  • 7. Q: What do Ocean Ranger, Piper Alpha, and Deepwater Horizon have in common? 1. They were the worst marine disasters in their respective countries 2. They were a result of Process Safety failures 3. They impacted the entire industry Answer:
  • 8. While we may argue over who was at fault, one thing we cannot dispute: All these accidents were preventable
  • 9. There is confusion on what constitutes Process Safety What is Process Safety? How do you measure it? How do you manage it? So whatā€™s the problemo?
  • 10. There is no common understanding even amongst the Drillers and their customers
  • 11. Unlike Personnel Safety where the connection or the link between the cause and the effect is painfully obviousā€¦. Hereā€™s another problemā€¦
  • 12. ā€¦when it comes to Process Safety, it is just not so
  • 13. In the past, we have fixated on all kinds of slips, trips, and fallsā€”things that are biased towards Personnel Safety and not towards major hazard precursorsā€”the stuff Process Safety is made up of So what can we learn from our pastā€¦
  • 14. We focus on all kinds of slips, trips, and fallsā€”things that are biased towards Personnel Safety and not towards major hazard precursorsā€”the stuff Process Safety is made up ofLesson 1. We are measuring the WRONG things
  • 15. To reward and promote behavior our management systems rely on tools such as LTIRs and TRIRsā€”indicators of Personnel Safetyā€”without paying similar attention to tools that measure Process Safety performance
  • 16. Lesson 2. We are using the WRONG tools
  • 17. Our safety performance appraisal systems rely on data that is after the fact. It is lagging
  • 18. Lesson 3. They are facing in the WRONG Direction
  • 19. measuring the WRONG things ā€¦using the WRONG tools that are ā€¦facing the WRONG direction Bottom-lineā€¦ We are
  • 20. So where do we go from here?
  • 21. Unfortunately, Compliance, while necessary, is not the answer Option 1: Do as told
  • 22. Here is an example of what the being ā€œin complianceā€ audit would look like Seriously?
  • 24. ā€¦by doing things we havenā€™t done beforeā€¦such as collaborating amongst ourselves
  • 25. In addition, we can also learn from the upstream Operators and the downstream Chemical industries
  • 27. 1. They have a formal platform in place that allows them to compare their entire business performance with their competitors 2. They compare their process safety performance through another benchmarking program designed specifically around the CCPSā€™s Risk Based Process Safety Guidelines
  • 28. 2. We need a different set of leading indicators to measure the integrity of our operations 1. We need a similar platform that allows comparing our design, engineering, operating, and maintenance practices so that we can also learn from each otherā€™s best practices
  • 29. So whatā€™s holding us back? Over the years we have accumulated some baggage that needs to be shed
  • 30. ā€¢ Process Safety is an industry leadership issue:
  • 32. Well Defined Structured Steady State Routine Less Risky PredictableProcess Safety is a downstream industry issue since their operations areā€¦..
  • 34. Itā€™s time to formally define Process Safety
  • 35. 1. What does it look like? 2. What does it do? 3. How does it do that? In order for us to remember it better, we can breakdown the definition into answers to these three simple questions:
  • 36. 1. It is a disciplined framework
  • 37. 2. For managing the integrity of hazardous operating systems and processes
  • 38. 3. By applying good Design principles, Engineering, Operating, and Maintenance practices D E O Mar i Just rememberā€¦
  • 39. ā€¦a disciplined framework by applying good Design principles, Engineering, Operating, and Maintenance practices for managing integrity of hazardous operating systems and processes Once again, Process Safety is defined asā€¦ 1. What does it look like? 2. What does it do? 3. How does it do that?
  • 40. So, do you still believe Process Safety doesnā€™t apply to us?
  • 43. It doesnā€™t matter who is at fault; the whole industry is affected once we have a catastrophic disaster
  • 44. Which means, whether we like it or not, ā€œprocess safetyā€ problems of our peers are our problems as well Holy S#&%..!!
  • 45. ā€¢ Process Safety is an industry leadership issue:
  • 46. In our line of work do we have conflicts between Design, Engineering, Operations, and Maintenance people?
  • 47. And do you think our HSE person has the power and the resources to prevent or resolve them?
  • 48. Mama..!!! If not HSEā€™s then whose baby is it anyway? Mamaā€¦..!!!! Mamma ...!!!
  • 49. To better understand why Process Safety is a leadership issue let us look at where are we in this journey
  • 50. 5. GENERATIVE Safety is how we do business round here 3. CALCULATIVE We have systems in place to manage all hazards 2. REACTIVE Safety is important, we do a lot every time we have an accident 1. PATHOLOGICAL Who cares as long as we are not caught In his research, Dr. Patrick Hudson mentions five stages that differentiate organizational safety cultures 4. PROACTIVE We work on the problems that we still find
  • 51. Look at the nets in the picture here. Wonder why they are there? Let us look at an example of a company from another industry that is at the bottom of this ladder
  • 52. Between 2008 and 2010 , 19 committed suicide by ā€œjumping or fallingā€ off of its factory or dormitory buildings Four died in two factory explosions and another 77 who were injured 59 injured during a December 2011 plant explosion Workers have to sign a ā€œno suicideā€ pact and the families have to sign ā€œno litigationā€ agreement They are there to ā€œcatchā€ workers jumping off of the top floors of this manufacturing plant in China in an attempt to prevent them from committing suicideā€”a rather ingenious response devised by the company leadership to combat workforce reaction to its inhuman working conditions The Leader
  • 53. Workplace Injury Rate down by 90% Within a year Profits reach record High By the end of his tenure Annual Net Income 5 times larger than before he arrived Market Capitalization $27 Billion an eightfold increase Safest company in the world. More likely to get hurt in a software firm designing graphic animations than here working with 2000 degrees Fahrenheit of molten aluminum And here is one that arguably at the top of the ladder The changes in a company after a new CEO takes over and declares Safety as his TOP priority
  • 54. ā€œThere should never be a trade-off between values and economics. Values should always winā€ ā€œif you want to understand how Alcoa is doing, you need to look at our workplace safety figures. Profits donā€™t matter as much as safetyā€ ā€œI went to Alcoa with a burning fireā€¦to demonstrate that it is possible for a truly great organization to be value-based without any reservationsā€ The new leader
  • 55. Process Safety is an industry leadership issue: Is HSE the right department to handle it?
  • 56. Why do we continue to focus on Personnel Safety even though several major disaster investigations have shown that Process Safety issues are the root cause? First, the bad news ā€¦with some Good news and some Bad news Time to wrap upā€¦.
  • 57. Why do we continue to focus on Personnel Safety even though several major disaster investigations have shown that Process Safety issues are the root cause? First, the bad news
  • 58. Process Safety is hard to understand !?! Becauseā€¦ā€¦
  • 59. Process Safety is difficult to measure !@??
  • 60. There is little consensus on what constitutes Process Safety let alone how to manage it What theā€¦ !&@!
  • 61. Regulators Clients Stock Markets Even though our stakeholders agree on the importance of safety, they have different interpretations at operational level
  • 65. All it takes is just one person to do whatā€™s right for the rig to stop the unfolding disaster from following through
  • 66. ā€¦all it takes is just one person to do whatā€™s right for the rig to stop the unfolding disaster from following through
  • 67. Questions/ Comments/ Suggestions? ā€œBe sure to let go before it hits the shredderā€
  • 68. Thank You Vivek Bhatnagar Phillip Townsend Associates, Inc., Houston, TX onlyvivekbhatnagar@gmail.com
  • 69. Lieutenant Colonel (ret.) Vivek Bhatnagar is a veteran with over 21 years of service in the Indian Armed Forces. He retired in 2006 after serving as a Commanding Officer of an Electronic Warfare Regiment. For the past 6 years Vivek has been working in the energy, chemical, and petrochemical sectors in the US with an emphasis on Process Safety and Operational Excellence, and more recently with its relevance to the global offshore drilling industry. Vivek is an Engineer and an MBA. He is a graduate from the National Defense Academy and the Indian Military Academy. He did his B.Tech. from the College of Military Engineering and his MBA from Babson College in Massachusetts, US. In addition, Vivek is a qualified commando, physical trainer, and an instructor in ADP systems. Vivekā€™s papers on process safety have been selected for presentations at the IADC, Society of Petroleum Engineers, the International Association of Oil and Gas Producers, and the Canadian Society of Chemical Engineers conferences in North America, Europe, Australia, and Asia. In addition, he has authored several articles for the BusinessWeek. This presentation from Colonel Bhatnagar includes excerpts from his upcoming book on process safety and its relevance to the drilling industry. 2012 Bio-data: Vivek Bhatnagar Phillip Townsend Associates, Inc.