PSM Compliance audit

2010

Welcome to Lloyd’s Register

Process Safety Management (PSM) Compliance Audits

Building a Path to Excellence

John Keefe

Work Processes Manager

Lloyd’s Register Capstone

Dick Baum

Risk Management Services Manager

Lloyd’s Register Celerity3

Click to edit master title styleMonth YY2010

safety, integrity, performance

Outline:Outline:Outline:Outline:

• Lloyd’s Register

• Why implement PSM?

• PSM Compliance Audit

• How we can help you

Building a Path to Excellence

life matters



The Lloyd’s Register Group

ValuesValuesValuesValues

• We are a non-profit distributing organisation; impartial with complete financial, political and technical independence

• Our offer is distinct, transparent and results orientated

• We have 7,000 dedicated and highly competent employees worldwide

recognised

trustedun-biased



PerformancePerformancePerformancePerformance

IntegrityIntegrityIntegrityIntegrity

LifeLifeLifeLifeLifeLifeLifeLife--------extension / extension / extension / extension / extension / extension / extension / extension / ReReReReReReReRe--------use / use / use / use / use / use / use / use /

DeDeDeDeDeDeDeDe--------commissioningcommissioningcommissioningcommissioningcommissioningcommissioningcommissioningcommissioning

SafetySafetySafetySafetyMaintenanceMaintenanceMaintenanceMaintenance& Inspections& Inspections& Inspections& InspectionsManagementManagementManagementManagement

Maintenance &Maintenance &Maintenance &Maintenance &Inspection PlanInspection PlanInspection PlanInspection PlanDevelopmentDevelopmentDevelopmentDevelopment

OperationsOperationsOperationsOperationsManagementManagementManagementManagement

Spare PartsSpare PartsSpare PartsSpare PartsManagementManagementManagementManagement

ComplianceComplianceComplianceComplianceManagementManagementManagementManagement

ShutShutShutShut----down &down &down &down &Project ManagementProject ManagementProject ManagementProject Management

DesignDesignDesignDesign

ConstructionConstructionConstructionConstruction

CommissioningCommissioningCommissioningCommissioning

Lifecycle solutions



Why implement PSM?

• Safety

• Compliance

• Business advantage

“PSM is widely credited for reductions in major accident

risk and in improved chemical industry performance.”

CCPS [emphasis added]

“PSM is a business issue…”

DuPont



History of PSM - DuPont’s Perspective

1960 1970 1980 1990 2000 2010

Pre 1960

Over 160 years

operating

hazardous

processes

1970’s

Several

accidents

New Jersey

1984

Bhopal

1996

ZIP Teams

OSHA and states

began developing

regulations

1979

First corporate

standard (PHM)

1986

DuPont work

with other

companies

1991

OSHA writes

PSM

1965

Explosion

Louisville,

Kentucky

2009

Chem NEP

2007

Ref NEP



Inputs to PSM Compliance Audit

PSM Compliance

Audit

OSHA Process

Safety

Management

(1910.119)

EPA Regulation

Part 68

Chemical Accident

Prevention

Recognized

Practices

Supporting Regs

1910.38 1910.120

1910.165 1910.252

1910.1200 Company

Requirements



Process

• Pre-Audit Evaluation

• On-Site Evaluation

• Kickoff Meeting

• Gather evidence – interview, document review, records check, plant tour, personnel observations

• Protocol - scoring and findings

• Daily briefing

• Closing Meeting – preliminary findings

• After On-Site

• Issue draft report

• Client feedback on draft / Appeal process

• Issue final report

• Debrief



On-Site Evidence Gathering

Broad examination of organization, process units, and physical assets

Detailed review of evidence to measure

if program complies with regulation and

if program is being implemented successfully



PSM Compliance Audit Components

PSM Compliance

Audit

Experienced

Auditors

Protocol and

Scoring Tool

Guidance

Notes

Interview

Questions

Pre-Audit

Questionnaire



Scalable Scope

• One-week gap analysis objectives:

• identify gaps

• minimize impact on personnel

• base scores on evidence

• Multi-week comprehensive analysis objectives:

• improve safety culture

• empower personnel

• streamline work processes

• establish leading and lagging KPIs

• maximize capabilities of existing information systems



PSM Compliance Audit Components

PSM Compliance

Audit

Experienced

Auditors

Protocol and

Scoring Tool

Guidance

Notes

Interview

Questions

Pre-Audit

Questionnaire

PSM Compliance audit

Documents

Transcript of PSM Compliance audit