Effective Implementation of PSM to Reduce Risks

Ultimate success of PSM is measured through effective risk reduction. Usually, there is a lot of emphasis on putting the various elements of PSM in place through adoption of estabished international standards and best practices. Many of these standards and best practices are very well documented. Unfortunately, the risk is not reduced until the documents and paper is converted in to reality. Also, many companies tend to do high quality technical studies and quantitative risk analysis but very little is done to follow up on implementing the recommendations and results of these studies. So, despite significant amount of effort,  the improvement in the effectiveness of PSM implementation is limited.

SCG Chemicals has adopted a practical approach that is driven with a specific purpose in mind and that is risk reduction. A bi-focal approach to risk reduction has been adopted. The short term focus is to address deviations in the field which if not addressed today can contribute to a potential catastrophic incident tomorrow. This enhances operational discipline and prevents ‘normalization of deviations’. The longer term approach focuses on redoing structured PHAs and using the risk matrix to establish the levels of acceptable/unacceptable risks. Management decisions are then made to address the unacceptable risks with a rigorous follow up on implementing the recommendations. This process has contributed to better outcomes in increased effectiveness of PSM while optimizing the money, time, and effort required. This paper will share the experience that SCG PSM Journey along with DuPont as a partner in implementing PSM effectively.