PSM Best Practices IRC R&T Forum. Todd Jekel Assistant Director Industrial Refrigeration Consortium

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1 PSM Best Practices 2008 IRC R&T Forum Todd Jekel Assistant Director Industrial Refrigeration Consortium

2 Overview Business case for PSM Streamlining the process Staffing Coordinator champion PMs for PSM related items (staffing) Calculations PRV, charge, MEB, etc. PHA Continuous improvement In-house mini-auditing (Kraft, Nestlé) Fugitive emission response Line breaking permits

3 Why do we do PSM? Right reasons Protection or preservation of a significant investment Improved safety, reliability, efficiency Wrong reasons Satisfy regulation Avoid fines

4 Why do we do PSM? Comply because it is required Achieving the minimum is the goal and organization will likely fall sort of that goal Usually involves the minimum effort to comply At best, it results in a paper-only program with no or poor implementation All but guarantees little or no return on investment of cost to implement program Comply because it makes good business sense Results in program that protects your investment in human resources protects your investment in infrastructure enhances the refrigeration utility s reliability and efficiency provides a safe community & work environment

5 What s the difference? In either case, PSM is done, right? Yes, but attitude is important! Under which scenario is PSM more likely to be implemented? Seen as a bother, or Seen as a process or business improvement strategy

6 PSM What s the business case? Protect Capital Infrastructure/ Investments plant property, equipment, buildings, and other infrastructure - these are all essential to your plant's ability to produce and store products What is the value of avoiding a significant loss? Refrigerated warehouse - $2 million loss in capital due to large release Deflagration results $8 million capital loss for in food manufacturer Cold storage warehouse - $13 million loss in product contamination due to small leak Many facilities that have a large-scale catastrophic incident either never re-open or close within 2 yrs

7 PSM What s the business case? Protection of Your Market Share If a plant catastrophe causes a significant disruption in operations, it could lead to erosion or loss of your corporation's market share. What is the value of protecting your market share?

8 PSM What s the business case? Protect Human Resources plant employees - without employees, it is hard to produce products. Your company made a considerable investment in many of its employees (especially skilled trades and professional staff). What is the value of their loss? What is their "replacement" value?

9 PSM What s the business case? Improving Workplace Quality of Life Employees will greatly appreciate a workplace where risks to their health and safety are eliminated or minimized. In addition, you will likely realize a productivity benefit with improved workplace quality of life. Boosted productivity contributes directly to the bottom line!

10 PSM What s the business case? Community Stewardship Incidents at your plant that go beyond its boundaries can adversely impact the local community. What is the value of avoiding such mishaps and being a good steward to the local community?

11 PSM What s the business Goodwill case? Corporations have a considerable value in their goodwill. Although goodwill is difficult to quantify, it is real. Incidents, accidents, and regulatory action (fines) can erode goodwill.

12 Ask yourself Is cold of value to your company? Should it be? If you have a PSM program Does it provide a reliable, safe and efficient refrigeration system? Does it enhance the value of your company?

13 Streamlining PSM Integration of PSM into your plant s normal work processes For example, your work order system Assess whether a change results from the work If so, creation of MOC for proposed work Assess impact of change on PSI PHA Operating procedures Training Hot work or line break permitting

14 Streamlining Leverage Preventative Maintenance procedures (PMs) to include Visual inspection for Mechanical Integrity Have multiple persons overlap areas and compare the results Operator performing PM, and Another shift operator or PSM coordinator Operating procedure review Review & redline P&IDs

15 PSM Staffing PSM TEAM Coordinator serves as champion Create PMs for PSM team Assign review of P&IDs, operating procedures, etc. to operations staff Capture time to perform all required PMs Allows determination of required staffing levels

16 Management of Change Watchdog portion of the PSM standard that keeps the program up-to-date Key to a healthy PSM program No MOC usually indicates a paper program MOC is similar to Pre-Startup Safety Review (PSSR) for minor changes Note: the MOC process may ask whether a PSSR is required Should formally define replacement in kind (RIK)

17 RIK Example A regulator needs to be replaced, but timing & availability necessitate using a different manufacturer. True or False: A MOC is required. True. The function and materials of construction of the valve is identical, but the location of the manual opening stem is different thereby impacting the operating procedure or training for servicing the valve train. At a minimum it requires updating the PSI

18 Calculations The PSM standard requires certain calculations Design & basis for safety relief vent sizing Maximum intended inventory Mass & energy balances Do you have them?

19 Process Hazard Analysis What triggers revisiting the PHA for the system, area or component? Changes within refrigerated areas that indirectly impact refrigeration equipment (e.g. re-racking or process reconfiguration) Do multiple (i.e. accumulated) changes over time trigger a PHA?

20 Mini-auditing Elements Use more frequent in-house miniaudits of individual elements to improve the program Continuous improvement possible Utilize cross-functional teams within the plant to get range of perspective Increases awareness of PSM activities within the plant culture Does not take the place of the 3-year compliance audit required by PSM, but should make them less painful

21 Aggressive Fugitive Emission Response Formally address all smells Gather information from reporting person Investigate & document the cause Take corrective action Require person to sign-off Results in better working relationship between refrigeration & other departments Visibility & confidence in safety (PSM)

22 Line Break Permitting Develop a permit process for procedures that requires opening a portion of the system Require monitoring (portable detector) of environment during procedure Require proper PPE Buddy system Process can be modeled after hot-work permitting

23 Wrap up A healthy PSM program will enhance the reliability & effectiveness of your refrigerated processes Opportunities exist to streamline & improve PSM Look toward continuous improvement within your facility