AFTER CHEMICAL SPILL!

KILLS 4, INJURES 13

5 DIE IN EXPLOSION AT PLANT. 2 LOCAL MEN DEAD IN MINE COLLAPSE.

MANAGING OPERATIONAL
RISK TO ENHANCE BUSINESS
PERFORMANCE

FIREFIGHTERS BATTLING BLAZE AT CHEMICAL PLANT.

DuPont Sustainable Solutions

NEIGHBORHOOD EVACUATED
AFTER CHEMICAL SPILL!
WHY IS PSM IMPORTANT?

EXPLOSION AT PLANT
REFINERY BLAST UNDER INVESTIGATION.
KILLS 4, INJURES 13
REFINERY LOSSES IN FIVE-YEAR PERIODS LARGEST LOSSES - REFINERY

2 LOCAL MEN DEAD IN MINE COLLAPSE.

19721976
19771981
19821986
19871991
19921996
19972001
20022006
20072011

500

1000

1500

PROPERTY LOSS
USD MILLION*

DATE

EVENT TYPE

LOCATION

06/01/2011

Fire/Explosion

Fort McKay, Alberta

Canada

$600

25/09/2008

Fire/Explosion

Mina Al-Ahmadi
Kuwait

$590

05/05/1988

Vapor Cloud
Explosion

Norco, Louisiana
USA

$600

*Inflated to December 2011 Values

2000

Number of Incidents
Source: The 100 Largest Losses 19722011: Large Property Damage Losses in the Hydrocarbon Industry (22nd edition) by Marsh & McLennon Companies

PSM

Process Safety Management is the application of management systems and controls to a

manufacturing process in a way that process hazards (risks) are identified, understood,
and controlled so that process-related injuries and incidents are prevented.

PSM IS A WAY OF MANAGING TO ACHIEVE

Right to Operate

Tech
nol
og
y
Management
Commitment

Go

e
ctiv ation
e
f
f
E
nic
mu
m
co

Facilitie

,o
& p bjec
lan tive
s,
s

will use this 22-element

framework to adapt and integrate with existing
managing systems to reduce operational risks. This
methodology helps to move organizations through
stages of assessment and awareness, to planning and
implementation of customized process safety standards
and operational best practices, to benchmarking and
continuous improvement.

HELP BUILD

Process Innovation/
Renovation

HELP RUN IT

Plan/Design/Develop

Best Practices Workshops

Assessments/Benchmarking
Asset PSM Improvement Plan
Development
Corporate PSM Strategy
Development

DuPont consultants

y
fet l
Sa nne
rso
pe

Procedures &
performance
standards

T
de raini
ve ng
lop &
me
nt

als

WHAT TO DO

ch

M
ch ana
an g
ge em
-fa en
cil t o
iti f
es

Line management
accountability
& responsibility

Q
ass uality
ura
nce

up s
art
-st iew
Pre ty rev
e
saf

CULTURE

Motivation &
awareness

safety
Contractor
nt
m
manage e

Management
Commitment

Mechanica
l
integrity

ted
gra ional
e
t
In izat
an
ure
org truct
s

Pe
rs
o

RISK-BASED

ty
Process safe
n
o
ti
informa

Po
pri licies
nc
ipl &
es

Management
commitment

nt
ide ion
Inc tigat
es
inv

Ob

PERSONNEL

el
nn

M
cha anag
ng em
e-t
ech ent o
no f
log
y

se
& a rvati
ud ons
its

HOW TO DEVELOP A PSM CULTURE

FACILITIES

M
a
an nag
ge em
-p e
er nt
so o
nn f
el

TECHNOLOGY

Emergenc
y
preparedn
ess &
contingen
cy
planning

PREVENT MAJOR
INCIDENTS

t&
en
ssm rds
sse aza
k a s-h
Ris oces alysis
pr an

WHAT IS PROCESS SAFETY MANAGEMENT (PSM)?

Corporate
Responsibility

PROCESS-RELATED
INJURIES OR INCIDENTS

HELP SUSTAIN

Operations Support &

Implementation

Continuous Improvement

Governance and
Organizational Design

Organizational
Development

PSM Audits

PSM Design

Expert Skills Augmentation

Facilitate PSM processes and

identify hazards and risks
through structured processes.
Process for managing people,
operations, maintenance,
change, and emergencies

Delivery Execution

Learning and Development

Curriculum

Operating Discipline Tools

DEVELOPING A PROCESS SAFETY CULTURE

Empower employees to maximize personal
and collective discipline
Create a positive environment of
involvement and collaboration
Improve operating discipline by performing
every action correctly every time

30

YEARS

BUSINESSES
50
ACROSS

within DuPont

of PSM
experience

200

FACILITIES
worldwide

70 90
,000

people
employed

COUNTRIES
worldwide

180
160

100

% AUDIT SCORES

200

# OF PSIs

WHAT IS THE IMPACT?

NUMBER OF PROCESS SAFETY INCIDENTS (PSIs) VS % AUDIT SCORES

140

95
90
85

120

80

100

75

80

70

60

65

40

CATEGORY A & B PROCESS SAFETY INCIDENTS

60

20

SECOND PARTY PSM AUDIT SCORES

55

50

1992

1993

1994

1995

INCREASING
Productivity

What do the experts think?

Srinivasan Ramabhadran,
Global Practice Leader,
Process Safety and Risk
Management Consulting

1996

1997

1998

1999

2000

LOWERING

2001

2002

2003

Production Costs, Maintenance Costs,

Capital Budget, Insurance Costs

DuPont Sustainable Solutions

can help create Lasting
Improvement to Your PSM
Systems. Learn How

2004

2005

2006

2007

2008

2009

2010

2011

SUSTAINED VALUE

Developing Process Safety:

MOL Energy Group Case Study

Looking for Best Practices in

Process Safety & Operational
Risk Management?
Workshop Information