psm specialty group

PSMSpecialtyGroup

Training Process Safety Management AUDITING

Ujwal Ritwik CRSP, QEP, REM, LA ISO 45001/14001/9001/22000/50001

PSM Expert

KuwaitChapter

Objectives

Participants will - § Get an overview of Compliance Audit element of OSHA

standard 29 CFR 1910.119 § Get a snapshot Audit element of CCPS RBPS § Get a view of current state of practice of Auditing for Process

Safety Management

Agenda Overview Session - 1

§ Audit definition § Quick recap of OSHA Process Safety Management Standard 29

CFR 1910.119 § Requirements of Compliance Audit in OSHA PSM § Success factors for auditing § Requirements of PS Audit in CCPS RBPS § Question - answer

Why I am interested –  I remain deeply interested in Process Safety

–  Background of Nuclear Industry where public risk perception is critical

–  Began career in high hazard chemical industry, encountered several situations and major accident

– Worked at ICI, originator of HAZOP, and met Trevor Kletz

–  Part of team to survey Major Hazard Control program in India; experienced several catastrophic accidents closely

–  Became passionate about PS and risk management; self appointed ambassador

–  Implemented Process Safety Management at KPC and KNPC TrainingonPSMAuditing:UjwalRitwik

Quick Revisit of Process Safety Management

Opening question

Wouldyouliketohavebenefitsofcheaperenergy,plastic,fuel,transport,technology,conveniencesoflife?

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Areyoureadytopaytheprice-hurtandkillpeople,poisontheenvironment,losemoneyand

destroyproperty?

The History of Major Chemical Accidents

•  Flixborough,UnitedKingdom,1974•  Seveso,Italy,1976•  Bhopal,India,1984•  PemexLPGTerminal,MéxicoCity,México,1984•  PiperAlphaPlatform(Offshore),UKContinentalShelf,1988•  TexasCity,Texas,BP2005•  BuncefieldOilDepotFire,HertfordshireUK,2005•  GulfofMexico,BPMacondo,2010

WhendidPSMstart?

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OnthenightofDecember2-3,1984,asuddenreleaseofabout30metrictonsofmethyliso-cyanate(MIC)occurredattheUnionCarbidepesticideplantatBhopal,India.Theaccidentwasaresultofpoorsafetymanagementpractices,poorearlywarningsystems,andthelackofcommunitypreparedness.Theaccidentledtothedeathofover3,500peoplelivinginthevicinityandcausedrespiratorydamageandeyedamagetoover20,000others.Atleast200,000peoplefledduringtheweekEstimateddamage$350millionto$3billion

Methyl Isocyanate Tank Rupture and Release Bhopal, India – Dec. 2-3, 1984

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Phillips 66 Houston Chemical Complex Pasadena, Texas – Oct. 23, 1989

OnOctober23,1989,anexplosionandfirerippedthroughthePhillips66CompanyHoustonChemicalComplexinPasadena,Texas.Twenty-threeworkerswerekilledandmorethan130wereinjured.Propertydamagewasnearlythree-quartersofabilliondollars.Morethan85,000poundsofhighlyflammablegaseswerereleasedthroughanopenvalve,duringregularmaintenanceoperationsononeoftheplant'spolyethylenereactors.Avaporcloudformedandtraveledrapidlythroughthepolyethyleneplant.Within90to120seconds,thevaporcloudcameintocontactwithanignitionsourceandexplodedwiththeforceof2.4tonsofTNTTrainingonPSMAuditing:UjwalRitwik

Regulatory Responses – Clean Air Act Amendments of 1990

1.  OSHAProcessSafetyManagementregulations–(29CFR1910.119)concernedwithaccidentpreventionintheworkplace(1992)

2.  EPARiskManagementProgramRegulations(40CFRPart68)-concernedwithaccidentpreventiontoprotectthepublicandenvironment(1996)

3.  TheAmendmentsalsoestablishedtheindependentU.S.ChemicalSafetyandHazardInvestigationBoard(42U.S.C.7412)(CSB,1998)

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29 CFR 1910.119

OSHA’sProcessSafetyManagementStandard

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Elements of PSM Standard

1.  EmployeeParticipation2.  ProcessSafetyInformation3.  ProcessHazardAnalysis4.  OperatingProcedures5.  Training6.  Contractors7.  Pre-startupSafetyReview

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8.  MechanicalIntegrity9.  Hot-workPermits10.  ManagementofChange11.  IncidentInvestigations12.  EmergencyPlanning&Response13.  ComplianceAudits14.  TradeSecrets

Quiz

1.  Whatpricedowepayforcheaperenergy,chemicalsandplastics?2.  WhatpromptedCleanAirActAmendmentBill(USA,1990)?3.  WhatyearOSHAPSMstandardregulationwasbroughtinforce?4.  WhatisthecompanionregulationbyEPAtoprotectpublicand

environment?5.  HowmanyelementsdowehaveinOSHAPSMstandard?

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Components of OSHA - PSM Compliance Audit Element

Audit is a feedback mechanism that provides management with the status and measurement of effectiveness of the various efforts and leads to the appropriate control over these efforts A site audit program consists of

- separating the PSM program into its component parts - auditing each part to determine actual versus intended effectiveness - formulating corrective action to improve performance - reporting / documenting findings - follow up controls

In addition to PSM improvement often audits point to improvements in operations, maintenance, and engineering aspects Compliance Audit: Evaluation of compliance with the provisions of law

What is Process Safety Management Audit

29 CFR 1910.119, OSHA Process Safety Management of Highly Hazardous Chemicals (o) Compliance Audits

(1) Employers shall certify that they have evaluated compliance with the provisions of this section at least every three years to verify that the procedures and practices developed under the standard are adequate and are being followed

(2) The compliance audit shall be conducted by at least one person knowledgeable in the process

(3) A report of the findings of the audit shall be developed

(4) The employer shall promptly determine and document an appropriate response to each of the findings of the compliance audit, and document that deficiencies have been corrected

(5) Employers shall retain the two (2) most recent compliance audit reports

OSHA PSM Compliance Audit Text

Compliance Audits - Requirements

• ComplianceauditsofPSMProgramevery3years• Auditsconductedbyperson(s)knowledgeableintheprocess• Auditteamsizewillvary•  Trainedauditteamleader• Writtenreportofcorrectiveactionandfollow-up•  Last2complianceauditreportsonfile• Createdocumentationofsafeandunsafepractices

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Compliance Audits – Recommendations

•  TrainedauditteamsortrainedsingleauditorsshouldconductPSMaudits

• PSMauditsshouldconsistofPSMprocessdocumentreviews,recordsreviews,employeeinterviewsandonsiteobservations

•  Trackingsystemsshouldbeusedtomanageauditrecommendations/correctiveactions

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Compliance Audits – Recommendations

•  Thirdparty(outside)auditorswhileimpartialarenotmandated• However,U.S.OSHAsays,"Theauditshouldbeconductedorledbyapersonknowledgeableinaudittechniqueswhoisimpartialtowardsthefacilityorareabeingaudited."(emphasisadded)

• Certificationofauditrequiredbyresponsibleperson-shouldincludesignatureanddate

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Compliance Audits – Recommendations

• PSM“StatusAssessments”,“ReadinessReviews”,etc.canbecountedasauditsiftheyweredonetocomplywithAuditProtocols

• Recommendationsdonothavetobedevelopedaspartoftheaudititselfbutcanbeaddedlater

• ResolvingAuditRecommendations:•  notexpectingeverythingtobecompletedin2-3months•  everythingshouldbecompletedin6months,unlessjustificationiswarrantedforlongerperiod(e.g..leadtimeonmaterial)

•  keywillbewhatinterimstepshavebeentakentoassureemployeesafetyNote:Thesecommentsmayapplytootherelements

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Compliance Audits – Recommendations

• ResolvingAuditRecommendations:•  Facilitiescannottakethe3yearsuntilthenextaudittocorrectfindings-correctiveactionsshouldstartimmediately

•  Standardauditprotocol/checklistorreportformatisrecommended•  Thetriennialrequirementforthenextauditshouldbemeasuredfromthecertificationdateofthepreviousaudit

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Compliance Audits – Best Practices • Useauditteammembersfromotheroperatingdepartmentsatsite• Useauditteammembersfromothersites• Conductauditsonasmallerscopebutmorefrequentbasis

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Auditing Audit Program • Haveyouestablishedaformalauditprogramtoreviewtheprocesssafetyofyourfacility?

• Doestheprogramcallforre-evaluationauditsatleasteverythreeyears?

• Doyouhavearecommendationstrackingsysteminplacethatassuresthatdeficienciesaredocumented,assignedtoaresponsiblepartyforcorrectiveaction,anddocumentedwhencomplete?

• AreyourauditsconductedbyanindividualorteamthatisknowledgeableofthePSMprogramandrequirements?

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Compliance Audit Checklist

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Quiz

1.  WhatisthenameofthePSMelementonaudit?2.  Whoissupposedtodotheaudit?3.  Howoftentheauditisrequired?4.  Whomustbepartofauditteam?5.  Whatmustbedocumentedbytheemployerafterreceivingan

auditreport?6.  Howmanycomplianceauditreportstheemployerisrequiredto

retain?

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Auditing Success Factors

Effectiveness of PSM Audits

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D.JonesSurvey(2000)figuresuggestedthat•  ProcessSafetyManagement(PSM)complianceauditsarespecificand

comprehensive,focusingon14elementsofOSHA’sPSMStandards•  Awell-plannedandorganizedauditprocess—includingcross-trainedpersonnel,

auditchecklistsandself-audits—canhelpensureasuccessfuloutcome•  ThePSMauditshavebroughtthenumberofaccidentsdownverysharply•  PSMsystemsauditsaskedthetopcorporatemanagementtounderstandits

importanceandallocatesufficientresourcesforitsongoingsuccess

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Top 7 PSM Audit Violations and How to Avoid Them - 1

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1.OutdatedProcessSafetyInformation

e.g.Safetyreliefsystem,inventory,ventilationcalculations,“Fieldverified”pipingandinstrumentationdrawings(P&IDs);Manytimes,facilitieshavemadechangestotheprocesssystemwithoutupdatingthisdocumentation.

2.PreviousProcessHazardAnalysis(PHA)Issues

OutstandingPHArecommendationsthathavenotbeenaddressedorproperlyclosedout.

3.VagueStandardOperatingProcedures(SOPs)

Thosethataregenericinnature,notequipmentspecificandhavenotbeenreviewed/certifiedannuallyasrequiredbytheOSHAStandard.

Top 7 PSM Audit Violations and How to Avoid Them - 2

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4.ImproperManagementofChange(MOC)Documentation

Toooften,aMOCiscompletedaftertheequipmenthasbeeninstalledandisoperational.EnsurethatMOCsarefullycompletedandsignedoffbytheauthorizingpersonnelbeforestartupoftheequipment.Similarly,MOCsaremanytimesforgottenwhencompletingchangestooperatingprocedures,Elements,etc.MOCsarerequiredforanychangeaffectinghowyoudosomething(i.e.,addingstepstothestart-upprocessofapieceofequipment).

5.LackofProperPSMTraining

PSMrequiresthatpersonnelinvolvedwiththeoperationandmaintenanceoftheammoniasystemreceiveinitialtrainingandrefreshertrainingeverythreeyears.

Top 7 PSM Audit Violations and How to Avoid Them - 3

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6.GapsinAuditFrequency

ThisreferstoauditsthathavenotbeenconductedeverythreeyearsasrequiredbythePSMStandardortheactionitemsthatweregeneratedfromthepreviousauditthathavenotbeenclosedoutintimeforthenextauditcycle.

7.ImproperorUnorganizedDocumentation

Inpreparationfortheaudit,ensureallofyourwrittendocumentationisuptodateandfiledinaformatthatiseasilyaccessibletotheauditor.Theauditorwillneedtoreadandreviewalargeamountofwrittenproceduresandguidelines.It’sbesttoplacethesedocumentsinanofficeorconferenceroomfortheauditortoworkfrom.Thiswillalsoprovideanareawheretheauditorcanworkprivatelyandconductemployeeinterviews.

Incidents that underline Ineffective Auditing

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§  Reviewofseveralcatastrophicaccidentshaverevealedineffectiveandinappropriateauditingpracticesprevalentpriortotheincidents

§  PiperAlphaoilrigfire1988–auditingdonebutnomanagementoversight,recommendationsnotactedupon

§  TexasCityRefineryexplosion2005–PSMauditsdonejustforcompletingtheritual,tofulfillpaperwork

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6 July 1988: A series of explosions destroyed the Piper Alpha oil platform in the North Sea. One hundred and sixty seven men died in the world's worst offshore oil disaster.

PSM Systems Audit

Management System

§ OSHA29CFR1910.119isaregulatorystandard,1992§ Itisanobjectivestandardformanagingprocesssafety(PSM),andnotadetailedprescriptivestandard

§ Itisnotamanagementsystem§ Center for Chemical Safety (CCPS) in 2007 cameoutwith a ProcessSafetyManagementSystem–RiskBasedProcessSafetyManagementSystem(RBPS)

§ RBPShasfourfoundationalblocks,20elements

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PSM System Audit Vs. PS Audit

§ Process Safety ManagementSystemsAuditinclude

•  Policiesandprocedures•  Managementorganization•  Planningprocess•  R i s k a s s e s s m e n t a n dmanagement

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§ ProcessSafetyAudit•  Moredetailedandspecific•  Provide increased assurance thatu n i t s a r e o p e r a t e d a n dmaintained people, plant andenvironmentareprotected

•  Sometime combine hazardevaluations

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CCPS - RBPS 3Pillar(FoundationalBlock)–ManageRisk3.1Element–OperatingProcedures3.2Element–SafeWorkPractices3.3Element–AssetIntegrityandReliability3.4Element–ContractorManagement3.5Element–TrainingandPerformanceAssurance3.6Element–ManagementofChange3.7Element–OperationalReadiness3.8Element–ConductofOperations3.9Element–EmergencyManagement4Pillar(FoundationalBlock)–LearnfromExperience4.1Element–IncidentInvestigation4.2Element–MeasurementsandMetrics4.3Element–Auditing4.4Element–ManagementReviewandContinuousImprovement

1Pillar(FoundationalBlock)-CommitmenttoProcessSafety1.1Element–ProcessSafetyCulture1.2Element–CompliancewithStandards1.3Element–ProcessSafetyCompetency1.4Element–WorkforceInvolvement1.5Element–StakeholdersOutreach2Pillar(FoundationalBlock)–UnderstandingHazardsandRisks2.1Element–ProcessKnowledgeManagement2.2Element–HazardIdentificationandRiskAnalysis

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CCPS - RBPS

RBPS Audit Element - Overview

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§  CriticalevaluationoftheRBPSmanagementsystemisoneoffourelementsintheLearningfromExperiencePillar(FoundationalBlock).

§  Theauditselementisintendedtoevaluatewhethermanagementsystemsareperformingasintended.

§  ItcomplementsotherRBPScontrolandmonitoringactivitiesinelementssuchasmanagementreview,metrics,andinspectionworkactivitiesthatarepartoftheassetintegrityandconductofoperationselements.

§  Theauditselementcomprisesasystemforscheduling,staffing,effectivelyperforming,anddocumentingperiodicevaluationsofallRBPSelements,aswellasprovidingsystemsformanagingtheresolutionoffindingsandcorrectiveactionsgeneratedbytheaudits.

RBPS Audit Element – Key Principles 1

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Thefollowingkeyprinciplesshouldbeaddressedwhendeveloping,evaluating,orimprovinganymanagementsystemfortheauditselement:§  MaintainaDependablePractice

•  Whenacompanyidentifiesordefinesanactivitytobeundertaken,thatcompanylikelywantstheactivitytobeperformedcorrectlyandconsistentlyoverthelifeofthefacility.

•  Theauditselementshouldbedocumentedtoanappropriatelevelofdetailinaprocedureorawrittenprogramaddressingthegeneralmanagementsystemaspectspreviously.

oEnsureconsistentimplementation.oIdentifywhenauditsareneeded.

RBPS Audit Element – Key Principles 2

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§  ConductElementWorkActivitiesNote:Thisnarrativeassumesthata2ndor3rdpartyauditteamisconductinganauditofthefullRBPSmanagementsystem.Manyofthesesameactivitieswouldberequiredfora1stpartyaudit;however,someofthelogisticalissuesandpreparatorytaskswouldbesimpler,ornonexistent,forateamself-auditingitsownfacility.

oPreparefortheaudit.oDeterminetheauditscopeandschedule.oAssembletheteam.oAssignresponsibilities.oGatheradvancedinformation.oPlanonsiteactivities.oConducttheaudit.oDocumenttheaudit.oAddressauditfindingsandrecommendations.

RBPS Audit Element– Key Principles 3

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§  UseAuditstoEnhanceRBPSEffectiveness

oMonitorRBPSmaturationovertimeforeachfacility.oSharebestpractices.

Quiz

1.  WhatisthedifferencebetweenPSMSystemsauditandProcessSafetyaudit?

2.  IsCCPSRiskBasedProcessSafetyManagementSystemaregulation?

3.  HowmanyfoundingpillarsandelementsRBPShas?4.  HowmanykeyAuditingprinciplesRBPShas?5.  Whataretheprinciples?

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What did we do?

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1.  OSHA PSM 2.  Compliance audit – a vital element of PSM standard 3.  Minimum requirements of the Compliance Audit program 4.  Audit checklist 5.  PSM System Audit Vs. PS Audit 6.  CCPS RBPS Auditing

Post session exercise – review the OSHA PSM Audit Checklist https://www.osha.gov/sites/default/files/2019-03/08_PSM_Auditing_Checklist.pdf

Next session

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1.  Current status of PSM auditing 2.  Best practices 3.  How to improve auditing 4.  Revision 5.  Question answer 6.  Conclusion

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Thank you for being with us

Stay Home stay Safe

•  SecondsessiononPSMAuditingwilltakeplaceonSunday,April5,202019:30pmKuwaittime(12:30pmET)

•  Pleaseregisterinadvanceandlogin15minutesbeforethestartofsession

Forfeedbackandsupport–uritwik@gmail.com