fmds1000 property conserv

7/30/2019 FMDS1000 Property Conserv

1/5

January 2001

Page 1 of 5

THE HUMAN FACTOR OF PROPERTY CONSERVATION

Table of Contents Page1.0 SCOPE ................................................................................................................................................... 2

1.1 Changes .......................................................................................................................................... 2

2.0 LOSS PREVENTION RECOMMENDATIONS ....................................................................................... 2

2.1 Introduction ...................................................................................................................................... 2

2.1.1 How the Human Factor Contributes to the Hazard .............................................................. 2

2.1.2 Managements Key Role in the Human Factor ..................................................................... 2

2.1.3 What You Can Do To Manage the Human Factor Hazard ................................................... 2

2.2 Human Factor .................................................................................................................................. 2

3.0 SUPPORT FOR RECOMMENDATIONS ............................................................................................... 2

3.1 Priority Activities of the Human Factor ............................................................................................ 2

3.2 Loss History ..................................................................................................................................... 3

3.2.1 Hot Work ................................................................................................................................ 33.2.2 Lift Truck Operator Training ................................................................................................... 3

3.2.3 Electrical/Human Factor Related ........................................................................................... 3

3.2.4 Various/Human Factor Related ............................................................................................. 3

3.2.5 Emergency Response ........................................................................................................... 4

3.3 Illustrative Losses ............................................................................................................................ 4

3.3.1 Hot Work Management ......................................................................................................... 4

3.3.2 Equipment Maintenance ........................................................................................................ 4

3.3.3 Loss Prevention Inspections/Building Maintenance .............................................................. 4

3.3.4 Management Commitment to Property Conservation ........................................................... 4

4.0 REFERENCES ....................................................................................................................................... 4

APPENDIX A GLOSSARY OF TERMS ....................................................................................................... 5

APPENDIX B DOCUMENT REVISION HISTORY ....................................................................................... 5

FM GlobalProperty Loss Prevention Data Sheets 10-0

2002 Factory Mutual I nsurance Company. All rights reserved. No part of this document may be reproduced,stored in a retrieval system, or transmitted, in whole or in part, in any form or by any means, electronic, mechanical,photocopying, recording, or otherwise, without written permission of Factory Mutual Insurance Company.


2/5

1.0 SCOPE

This data sheet is intended to be an overview document or preface to the 10-series data sheets. It provides

subject matter related to the Human Factor relative to property conservation. Its intent is to highlight those

activities where the Human Factor is most likely to impact on the frequency and/or severity of loss to prop-

erty and/or business interruption. Documented losses are the basis for the highlighted areas.

1.1 Changes

This is the first publication of this document.

2.0 LOSS PREVENTION RECOMMENDATIONS

2.1 Introduction

2.1.1 How the Human Factor Contributes to the Hazard

Properly trained employees can have a positive effect on reducing the impact of a loss from an emergency

situation. At the same time, however, people not effectively trained in the operation, maintenance, or emer-

gency response of plant equipment, processes, or physical hazards in a facility, create the potential for errors

in judgement and action. The results from these improper human decisions can directly lead to the actualcause of an emergency incident or significantly exacerbate the situation. Inappropriate human activities often-

times become an important factor in creating an environment for a property loss incident to develop. This

can happen through improper operation of equipment, misunderstanding the hazards present, ineffective

action to prevent or mitigate a developing emergency condition, improper maintenance of facilities/equipment

and lack of planning for potential emergency conditions.

2.1.2 Managements Key Role in the Human Factor

Senior managements understanding of the Human Factor is the key to effective management of this potential

hazard. Management has the sole responsibility for adopting complete policies, implementing effective pro-

cedures, and appointing properly trained and empowered individuals to provide daily supervision for each

of the stated human activities. An on-going commitment from senior management to properly manage the

Human Factor is a requirement for effective loss prevention results.

2.1.3 What You Can Do To Manage the Human Factor Hazard

Start by understanding the hazard from the Human Factor. Then implement needed programs that will

minimize the potential for negative impact from the Human Factor, and maximize the possibilities for posi-

tive impact. Additional and more specific information on the Human Factor can be found in other refer-

ences that are listed in Section 4.0 of this data sheet. For FM Global insured facilities, also consider

contacting your local FM Global field engineering representative or account engineer for additional assistance.

2.2 Human Factor

2.2.1 Recognize the need for a corporate-wide formal program to minimize the negative impact and maxi-

mize the positive impact of the Human Factor in all facility operations. Address a wide range of human activi-

ties that are applicable to loss prevention (A list of Human Factor priority activities, based on actual losses,

is given in Section 3.1). Once established, demonstrate senior management s commitment to managing the

Human Factor by inclusion into a written property conservation policy.

3.0 SUPPORT FOR RECOMMENDATIONS

3.1 Priority Activities of the Human Factor

Management Commitment to Property Conservation

Pre-Incident Planning

Emergency Response including Hazardous Materials

Hot Work Management

Managing Outside Contractors

10-0 The Human Factor of Property ConservationPage 2 FM Global Property Loss Prevention Data Sheets

2002 Factory Mutual Insurance Company. All rights reserved.


3/5

Loss Prevention and Control Inspections and Testing

Equipment and Building Maintenance and Safety Control Testing

Housekeeping and Storage Practices

Equipment Operator Training Fire Protection Impairment Management

Ignition Source Control

Process Safety Management

Property Supervision

Managing Change

Contingency Planning and Disaster Recovery

Equipment Operator Training Including Cranes and Lift Trucks

3.2 Loss History

An FM Global study of losses indicated that the Human Factor plays a negative role in approximately 2/3of all losses. A few statistics and examples regarding this are given below.

3.2.1 Hot Work

Hot Work losses are among the top causes of losses at properties insured by FM Global. And outside con-

tractors cause over half of those losses. In a study for the ten years 1987 through 1996, contractors caused

236 fires and explosions while doing hot work at properties insured by FM Global. In the same study, employ-

ees caused 165 fires as well. These statistics show that one should not assume a contractor will automati-

cally adhere to safe practices simply because they are contractors and do hot work all the time. This study

also points out that safe practices should be followed by everyone all of the time, including in-house person-

nel. In another FM Global study of 616 hot work losses, 539 losses were caused by cutting or welding torches,

and next in order were plumbers and painters torches at 37 losses.

3.2.2 Lift Truck Operator TrainingWhen used improperly, industrial lift trucks can cause severe fires and explosions, major gas leaks, water

damage, and collapse of building roof areas and rack storage. An FM Global analysis of losses involving lift

trucks between 1987 and 1996 revealed that more than half of these were caused by bad driving resulting

in collisions. More than one-third of these involved sprinkler system damage. The trend is increasing, as the

average yearly loss cost for the years 1993-1996 more than doubled over the yearly average for 1987-1992.

About 2/3 of the fires and explosions involving LP-Gas trucks result from breaks or leaks in the fuel

connections.

3.2.3 Electrical/Human Factor Related

A study by FM Global was done for the period from 1992 to 1996 for fires and explosions at insured locations

caused by electrical ignition, where the Human Factor was the cause or contributed to the extent of the loss.

A total of 216 losses were found in this study. Maintenance, inspection and testing issues accounted for 44%

of these losses, while 25% were attributable to emergency response techniques. Improper operation of equip-ment involved 16% of these losses, while the remaining 15% were related to housekeeping issues.

3.2.4 Various/Human Factor Related

An FM Global analysis was done for the period from 1992 to 1996, for fires and explosions (except fire only

for shut valves and adequately sprinklered fires) at insured locations where the Human Factor played a nega-

tive role. Also contractor losses were for various perils and not just fires and explosions.

The arson losses are the fires and explosions where the cause was

arson/incendiarism. There were 434 losses.

The contractor related losses included 437 occurrences.

The Human Factor of Property Conservation 10-0FM Global Property Loss Prevention Data Sheets Page 3



4/5

The hot work losses were related to the use of soldering pots or irons, grinding or buffing, brazing or roofer s

torch, cutting or welding, etc. There were 321 occurrences.

3.2.5 Emergency Response

An FM Global study was done on Emergency Response for the period from 1987 to 1997. This included1718 losses total. It revealed that where the Emergency Response was ineffective or inadequate, the average

loss was from 6 times to 19 times higher than where it was effective.

3.3 Illustrative Losses

3.3.1 Hot Work Management

At a food processor located in a 70-year-old building of plank-on-timber construction, a contractor was

removing obsolete machinery and piping from a third floor area. A member of the facility s plant engineering

staff checked with the contractor early in the morning and left the area. Reportedly the contractor had posted

a fire watch with fire extinguishers. Shortly after work with an oxyacetylene torch was begun, fire was dis-

covered in the second floor below the pipe-cutting work area, the result of molten metal globules falling

through openings in the floor. Extensive fire damage was caused to flooring, palletized storage of cartoned

food products, packaging material and records. Palletized storage of food product on the first floor was wet

down. Management began implementing the hot work permit system shortly thereafter for both employees andcontractors.

3.3.2 Equipment Maintenance

At a hospital, two 16-cylinder engine generators are provided to supply emergency power. They are report-

edly run unloaded for a half-hour every week and under load every four weeks. Routine maintenance was

provided by a contractor. One day, Unit 1 had been operating under load for about 20 minutes when loud

noises were heard. Before the operator could shut down the unit, a connecting rod came through the side

of the engine block. Extensive internal damage was found. During the investigation, Unit 2 was also examined

and found to be far outside of the manufacturers specifications. Considerable damage to various components

was found. For both units, the prime contributing factor was lack of power cylinder load balancing.

3.3.3 Loss Prevention Inspections/Building Maintenance

At a concrete plant, cement dust was leaking out of a conveyor that ran across a building s roof. The growing

pile was ignored, and eventually caused a large section of the roof to collapse.

3.3.4 Management Commitment to Property Conservation

A fire on a paper machine at a newsprint manufacturing facility caused extensive damage throughout the

dry end of the machine. Fire spread was rapid with thick smoke filling the building, quickly making manual

fire fighting very difficult. The rapid fire spread was in part due to poor housekeeping in the machine house.

Polyester dryer felts and oil leaking from fire-damaged lubricating and hydraulic oil lines contributed to the

fire. The most likely cause is spontaneous ignition of oil-soaked paper dust deposits. The fire was not

controlled by the automatic sprinkler system, as the fire pumps were in manual mode rather than automatic-

start mode because of leaks in the underground sprinkler main. By the time the fire pumps were started, the

fire was out of control. The poor state of the automatic fire protection can be attributed to lack of manage-

ment communication with regards to loss prevention and lack of a Property Conservation program.

4.0 REFERENCES

Many other FM Global data sheets.

Many listings in the FM Global Property Loss Prevention Resource, in the form of publications, learning kits,

videos and seminars.

10-0 The Human Factor of Property ConservationPage 4 FM Global Property Loss Prevention Data Sheets



5/5

APPENDIX A GLOSSARY OF TERMS

Human Factor: the Human Factor is the action or inaction that people introduce that directly impacts on

the probability for a property loss incident to occur and/or affects the level of severity that an incident reaches.

It can be a positive or negative factor. The hazard of the Human Factor is directly proportional to the physi-

cal hazards and processes present within a facility and inversely proportional to the level of preplanning, edu-cation and training provided for individuals in advance of the incident.

APPENDIX B DOCUMENT REVISION HISTORY

This document does not contain a document revision history.

The Human Factor of Property Conservation 10-0FM Global Property Loss Prevention Data Sheets Page 5


fmds1000 property conserv

Documents