industrial strength ametek - fm global touchpoints · 48 in case of an emergency fm global...
TRANSCRIPT
AM
ETEK
I N D U S T R I A L S T R E N G T H
G E R M A N Y F I R M E N G I N E E R S
A H I G H L Y R E S I L I E N T F A C I L I T Y
E M E R G E N C Y !I n t r o d u c i n g E R C
M A N ≠ N A T U R ES u n v s . P o w e r G r i d
p r O p E r T y r I S k A N D I N S U r A N C E S O L U T I O N S f O r A C O m p L E X w O r L D
ISSUE 4 : 2014
At FM Global, research is at the heart of everything we do. For nearly 200 years, we’ve conducted scientific research for the benefit of our clients. Our scientists analyze how fire, explosions, equipment failures and natural hazards impact your business. We conduct this research because the solutions we develop help our clients, our mutual partners, protect their facilities and businesses.
Check out our new Risk to Resilience video to better understand the value of FM Global research in protecting client properties.
FIND this video coverage on our magazine website, fmglobal.com/reason.
contents : ISSUE 4 2014
38 Industrial StrengthAMETEK/Spectro work together to fully protect a key high-tech facility in Kleve, Germany
48 In Case of an EmergencyFM Global Emergency Response Consultants provides hands-on emergency response training
features
departments
THE LATEST
09 Fire Grant Recipients
12 Books: Emerging Markets, Climate
13 Earthquake Checklist: Shaking
14 Infographic: Teachable Moments
THE IDEA
15 Just Make It Happen: Supply Chain
18 Long Distance Relationships
THE SCIENCE
21 Study: Smoke Damage in Data Centers
26 Man vs. Nature: How geomagnetic disturbances impact the power grid
28 Equipment Hazard: Aluminum Smelters
VOICES
31 Marifrances McGinn, general counsel and risk manager, Providence College
34 Ferdinard Crawford, security manager, MeadWestvaco
EXECUTIVE DIRECTOR Johanna Hetherton
MANAGING EDITOR Bob Gulla
ART DIRECTOR Jennifer Cournoyer
EDITORIAL
deputy editors Alicia Kamm, Cindy Degrange
senior editors Kerri Germani, Patricia Iannotti, John Rufo
editors Christian Campbell, Amy Carbone
contributing writers Alan Earls, Hank Giles
Stephanie Van Ness, Steve Turgeon
technical editor John C. Harrington
ART
creative director Rebecca Marino
associate art director Nicole Caddell
designers Elizabeth Picillo, Stephen Pine
design intern Sarah Morena
contributing photographers Lou Bopp, Tom Kates
Devlo Media
contributing illustrators John Holcroft, Shaw Nielsen
Rick Shiers
PRODUCTION
production manager Sheena Carter
production coordinator Ashley Kuhar
VIDEO PRODUCTION
producers Bob Gulla, Stephen Pine
contributing video direction Lou Bopp, Devlo Media, Jon Ryan
CUSTOMER SERVICE AND SUBSCRIPTIONS
270 Central Ave., P.O. Box 7500, Johnston, RI 02919 USA
fax: +1 (1)401 477 7010, phone: +1 (1)401 477 7744
(1)877 364 6726 (toll-free in Canada and United States)
email: [email protected]
REPRINTS
Address inquiries to:
Adam Houser, manager, intellectual property
phone: +1 (1)401 275 3000, ext. 2202
email: [email protected]
CORRESPONDENCE
Send to Reason, FM Global Communications
270 Central Avenue, P.O. Box 7500, Johnston, RI 02919 USA
fax: +1 (1)401 464 9031, phone: +1 (1)401 275 3000, ext. 2185
ADVISORY BOARD
Nick Batten (Client Service and Sales)
Jeffrey Beauman (Underwriting)
Chris Boston (Client Service and Sales)
Karen Freedman (Enterprise Learning)
Ronald Gibson (Engineering), Louis Gritzo (Research)
John C. Harrington (Engineering)
Belinda Oliver (Marketing)
Duncan Reid (Client Service and Sales)
Burton Wright (Claims), Martha Young (Marketing)
FM GLOBAL AROUND THE WORLD
FM Global products and services are available around the world. The countries listed below represent those where we regularly
serve our clients.
asia pacific
Australia Bangladesh Brunei Cambodia China Hong Kong
India Indonesia Japan Laos Macau Malaysia New Zealand
Pakistan Philippines Singapore South Korea Sri Lanka
Taiwan Thailand Vietnam
europe, middle east and africa
Albania Algeria Angola Armenia Austria Azerbaijan
Bahrain Belgium Bosnia-Herzegovina Botswana Bulgaria
Burkina Faso Cameroon Croatia Cyprus Czech Republic
Denmark Egypt Estonia Finland France Gabon Georgia
Germany Ghana Greece Hungary Iceland Ireland Israel
Italy Jordan Kazakhstan Kenya Kuwait Kyrgyzstan Latvia
Lebanon Liechtenstein Lithuania Luxembourg Macedonia
Madagascar Malta Montenegro Morocco Mozambique
Namibia Netherlands Norway Oman Poland Portugal Qatar
Romania Russia Saudi Arabia Senegal Serbia Slovakia
Slovenia South Africa Spain Sweden Switzerland
Tanzania Tunisia Turkey Ukraine United Arab Emirates
United Kingdom
north america
Bahamas Barbados Canada Costa Rica Dominican Republic
El Salvador Guatemala Honduras Jamaica Mexico
Nicaragua Panama United States
south america
Argentina Bolivia Brazil Chile Colombia Ecuador Paraguay
Peru Trinidad and Tobago Uruguay Venezuela
TO REACH THE FM GLOBAL OFFICE NEAREST YOU,
VISIT FMGLOBAL.COM/CONTACT.
This publication is made available for informational purposes only in support of the insurance relationship between FM Global and its clients. This information does not change or supplement policy terms or conditions. The liability of FM Global is limited to that contained in its insurance policies.
P07001 © 2014 FM Global. All rights reserved. In the United Kingdom: FM Insurance Company Limited, 1 Windsor Dials, Windsor, Berkshire, SL4 1RS. Regulated by the Financial Services Authority.
PLAY WITH FIRESO YOU DON’T GET BURNED
How would you respond during a fire emergency at your facility? Find out in Fire@Perilocity, FM Global’s new role-playing game for clients that simulates a real-life event.
To access Fire@Perilocity and other unique client training tools, log in at training.fmglobal.com.
Reason
MICHAEL BOTH is a senior consultant engineer who works with clients to protect their industrial facilities against identified risks. He evaluates structures and assesses systems to ensure they can withstand natural and manmade hazards.
n BOOK: Bones Never Lie, by Kathy Reichs
n APP: aPagern ARTIST: Die Toten Hosen
KAREN FREEDMAN manages enter-prise learning and is responsible for providing clients with loss prevention skills and knowledge to help protect their businesses from risk.
n BOOK: The Power of Habit, by Charles Duhigg
n APP: MapMyRunn ARTIST: Bruce Springsteen
CONNOR GORMLEY is a learning consultant who manages develop-ment projects for client custom online learning solutions, including e-learning courses, simulations, podcasts and videos.
n BOOK: The Tipping Point, by Malcolm Gladwell
n APP: RunKeepern ARTIST: Dave Matthews Band
MIKE SPAZIANI manages the FM Global Fire Prevention Grant Program. A senior account engineer, he also works with clients to identify vulnerabilities and develop risk-reducing strategies.
n BOOK: The Closer, by Mariano Rivera
n APP: FM Global Hot Work Permitn ARTIST: Journey
contributors
mobile follow us
GETTING TO KNOW USCheck out Your Partner in Resilience on RiskEssentials. It’s an interactive overview of the unique risk management products and services offered by FM Global. Download RiskEssentials from the App Store or Google Play.
WATCH THIS! Check out our new video From Risk to Resilience: The Importance of Research at FM Global on our YouTube channel youtube.com/fmglobal
JOIN US at facebook.com/fmglobal
FOLLOW US at twitter.com/FMGlobal
SUBSCRIBE to our YouTube channel at youtube.com/fmglobal
FOLLOW US on plus.google.com/+fmglobal
OK, SMART GUYBe a real know-it-all with six new videos in the publicly available Know More Risk series
How do you minimize the risk of fire due to static electricity? What are the basic differences between water sprinkler systems? Would a seismic gas shutoff valve make a difference during an earthquake? In an effort to advance the understanding of risk protection, FM Global has made its Know More Risk video series publicly avail-able. Short, nontechnical and easy to follow, each video discusses potential hazards and risk mitigation in relation to automatic sprin-klers, earthquakes, ignitable liquid and impairment handling.
The six new videos in the series are:■n Differential Pressure Dry-Pipe Valve Risers—arrangements
and operating principles of these riser systems and why and when they should be used.
■n Five Key Attributes of Automatic Sprinklers—key attributes that differentiate automatic sprinklers and why different hazard environments call for different sprinkler systems.
■n Four Principles for Handling Impairments to Fire Protec-tion—guiding principles for managing fire protection system impairment and introduction of the Red Tag Permit System as a decision-making tool.
■n Four Types of Water-Based Sprinkler Systems—their basic differences, the most common, the most reliable and when a dif-ferent type of system should be used.
■n Wet System—Riser Check Valve—arrangement, operation and alarm testing of a system using a riser check valve and waterflow alarm; one of two typical riser configurations for wet systems.
■n Wet System—Alarm Check Valve—arrangement, operation and alarm testing of a system using an alarm check valve and waterflow pressure switch; one of two typical riser configura-tions for wet systems.
FM Global provides training solutions that combine up-to-the-minute content with innovative delivery methods such as interactive
training modules, foreign-language podcasts, customized webinars and videos. “Learning tools such as the Know More Risk video series are another example of FM Global’s property loss prevention exper-tise coming alive to help clients,” says Karen Freedman, vice presi-dent, manager, enterprise learning. “Our goal is to provide training that is relevant, responsive and has a direct impact on risk.”
Other Know More Risk videos include: ■n Seismic Gas Shutoff Valve—what it is, how it works and why
it is important to install one in earthquake-prone regions.■n Low Flashpoint Liquids Overview—the nature of this hazard,
important protective features, and storing and dispensing op-erations; how to prevent fire threats, limit fire-feeding fuel and limit fire damage.
■n Safety Bung—how it prevents violent drum ruptures and safely contains vapor and liquid in the drum; it is distinguished from fusible plugs, another important safeguard for drums.
■n Manual Dispensing Equipment—proper use of self-closing faucets and manual drum pumps; why they are important in pre-venting fire and limiting fuel exposure.
■n Grounding-Earthing-Bonding—how flowing liquid causes electrical charges, and the proper use of grounding and bonding measures to prevent fire ignition during dispensing operations.
While the videos were created to demonstrate the means of prop-erty loss prevention to facility-level personnel with a role in risk miti-gation, their conversational style and short length—approximately four minutes each—are appropriate for anyone wanting to learn mea-sures for safeguarding property against risk. The Know More Risk series is accessible to clients in the FM Global Client Training Cen-ter, training.fmglobal.com, and its secure client extranet, MyRisk®, as well as to the public on the FM Global YouTube channel, YouTube.com/fmglobal.
6 [ Reason ] ISSUE 4: 2014
noteworthy
A REWARDING EXPERIENCEFM Global receives coveted industry award for its client training
Knowledge sharing has been the corner-stone of FM Global’s foundation for more than 175 years and continues to be a strong component of the FM Global philosophy. Educating clients and their employees in property risk reduction and loss prevention is just one of the ways FM Global partners with its clients. Because many losses can be prevented, empowering clients to develop their risk management skills creates mutu-ally beneficial relationships.
The Association for Talent Develop-ment (ATD) has recognized this educational aspect with a 2014 ATD BEST Award, rank-ing FM Global in the top 25 percent inter-nationally. FM Global’s enterprisewide cli-ent and employee learning and development program is offered in multiple languages, with client training courses covering a wide range of topics, including hot work, fire pumps, flooding and supply chains. “Engi-neering expertise is a critical discipline at FM Global, and online training developed around specific property loss prevention top-ics is a top priority for developing risk man-agement strategies,” says Karen Freedman, vice president, manager, enterprise learning. Education and information sharing have taken on a completely different shape with today’s technology. While direct train-ing and client service team interactions continue to be significant contributors to the company’s success, offerings have been
expanded to include e-courses through a dedicated online site where users can guide themselves through a multitude of learn-ing elements in their order of preference. Freedman has coined this modular structure “fingertip learning” and attributes the high access rate—more than 62,000 client mem-bers—to its ease of use. FM Global also promotes hands-on training for its engineers, clients and other property loss prevention specialists at its
SimZone facility at the Center for Property Risk Solutions, located in Norwood, Mas-sachusetts, USA. Earning FM Global a Business Insurance 2014 Innovation Award earlier this year, SimZone’s 12,000 square-foot (1,115 square-meter) facility contains 10 specialized learning areas that simulate property hazards in real-world scenarios for participants to gain knowledge and critical-thinking skills for identifying and managing risk. Knowledge transfer is a strongly held concept that FM Global continues to embrace and pay forward. “FM Global takes pride in offering no-cost, high-quality, enterprisewide learning and development opportunities to its clients,” says Freedman. “Receiving public recognition from within the industry is an honorable nod to these continued efforts.”
“ Engineering expertise is a critical discipline at FM Global, and online training developed around specific property loss prevention topics is a top priority for developing risk management strategies.”
Karen Freedman VICE PRESIDENT
MANAGER, ENTERPRISE LEARNING
FM Global @FMGlobal
Find out and share what’s
happening @FMGlobal in
less than 140 characters!
Follow us on #Twitter! Pls
RT! twitter.com/FMGlobal
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WHEN YOU'RE RESILIENT, YOU'RE IN BUSINESS
8 [ Reason ] ISSUE 4 : 2014
editor’s note
A Client FocusWith a population of 80 million inhabitants and a GDP (gross domestic product) of 2.1 billion euros, Germany is Europe’s largest economy, producing nearly a quarter of the European Union’s GDP and nearly a third of the GDP of the euro currency area. It is the fourth largest economy in the world, accounting for 6 percent of world GDP. The country boasts a highly skilled labor force, a large capi-tal stock and a high level of innovation. Germany is also home to some of FM Global’s premier clients. So it was with more than a little excitement that the Reason team was able to take advantage of an invita-tion from Spectro, one of those clients, and a leading
supplier of materials analysis technology. A subsidiary of FM Global client AMETEK, Inc., Spectro is located one hour east of Amsterdam, just across the Germany border in the Lower Rhine region. A few things were immediately evident when we entered the site. First, the factory floor at Spectro is, predictably, spotless. The senior executive staff is proud of this, and of Spectro’s ability to do brisk business in spite of a sluggish economy and increased competi-tion. Second, perhaps more surprising is to see Spectro’s newly installed sprinklers hanging overhead. They are suspended not only over the manufacturing floor but in the three adjoin-ing clean rooms as well. You can read about how the company went about retrofitting this spectacular sprinkler system and, subsequently, earning the site an HPR (highly protected risk) designation. Video of the adventure, including interviews with those charged with over-seeing the installation, is also ready for viewing. Elsewhere in the issue we introduce, or rather reintroduce, Emergency Response Consultants, an emergency service training facility (formerly known as TSB Loss Control Consultants). A recognized leader in progressive emergency training, ERC is a loss preven-tion consulting company specializing in training industrial fire brigades, hazardous materials emergency response teams, technical rescue teams and emergency medical services, as well as fire protection systems maintenance personnel. As you’ll read in our story and see in our video, ERC takes its training very seriously, which makes the organization a welcome part-ner in FM Global’s uber-quest to protect the value of the businesses our clients create.
Bob Gulla, managing [email protected]
Megan MarshallDIRECTOR OF RISK MANAGEMENT, THE HERSHEY COMPANY FROM WORKING TOGETHER: THE HERSHEY COMPANY AND FM GLOBAL
“ We just celebrated our 25th anniver-sary and I will say that no two days have been the same in interacting with FM Global, which is exactly what we’re looking for in terms of a strategic partner. They challenge us and they challenge the status quo. That keeps our risk management program growing and evolving.”
Doug TroupeDIRECTOR OF RISK MANAGEMENT, TENASKA FROM WORKING TOGETHER: TENASKA AND FM GLOBAL
“ One of the things that drew me to FM Global was the engineering side. I’m fascinated by how things work, and they helped me see the property loss prevention side, which really energized me. I was learning, and it was a great fit for where I was at careerwise, what Tenaska needed and what FM Global offered.”
TOP VIDEOSon fmglobal.com/reason
[ theLATEST ]
Going Mobile An airport leaves its antiquated paper system behind with the help of a fire prevention grant
Originally created more than 35 years ago to aid fire departments in arson investigations, FM Global’s grant program has since expanded to support a wide array of fire prevention, preparedness and control efforts. These include prefire planning for commercial, industrial and institutional facilities; fire investigation; and fire pre-vention education and training programs. “FM Global believes that most fires can be prevented and offers financial support to agencies with the same philosophy,” says Michael Spaziani, manager of the FM Global Fire Prevention Grant Program. u
10 [ Reason ] ISSUE 4 : 2014
[ theLATEST ][ theLATEST ]
Earlier this year, T. F. Green Airport Fire-Rescue, Rhode Island, USA, received one such grant to help bring the unit’s pre-planning efforts online. Its firefighters had been using an archaic paper system housed in volumes of binders and sharing informa-tion via radio communications. The grant from FM Global was used to buy an iPad for each apparatus, giving every operator access to information while on scene. Prefire planning can look different from one community to another. In the airport community, having access to airplane sche-matics is a top priority. Much like ground vehicles, each aircraft make and model has its own design and layout that goes beyond visual aesthetics. The iPads allow firefight-
ers to pull up information by company and by plane—in three taps or fewer—showing rescuers such things as where the fuel lines are located, where the oxygen is stored and, therefore, where the aircraft can be safely cut to extract passengers and extinguish fires. “Although aviation is still the saf-est mode of transportation, the need to be prepared still exists,” said Fire Chief Jack Thomas. “We experience about 25 aircraft incidents per year, which can include some-thing as simple as a flat tire on a single-engine two-passenger aircraft. However, the potential for something major always exists.” At 1.1 square miles (2.8 square meters), with approximately 10,000 people passing
PLAYING WITH FIRE A fire extinguisher simulator, purchased with a fire grant, assumes an integral role in training at the University of Connecticut
through each day, the T. F. Green Airport campus is essentially a town unto itself. In addition to handling aircraft emergencies, the fire department is responsible for other fire and rescue emergencies and ongoing fire safety inspections, all of which are made more efficient with the use of the iPads. Captain Jeremy Souza, who wrote the grant application, points out, “The beauty of these iPads is that they are stand-alones in their capabilities, without the need for being online. We are not at the mercy of Internet service connectivity issues.” “Supporting individual organizations in becoming more proactive in fire preven-tion measures, in turn, increases fire pre-vention awareness in the communities they serve,” says Spaziani. “FM Global is pleased to play a supporting role in these efforts.” Fire departments and brigades, as well as national, state, regional, local and commu-nity organizations can apply to the program for funding to support an array of fire pre-vention, preparedness and control efforts. To request an FM Global Fire Prevention Grant application, visit fmglobal.com/grants.
There’s the old-school way of training in the use of fire extinguish-ers—light a fire in a pan and put it out with a live fire extin-guisher—and then there’s the modern way, with a fire extinguisher simulator. “Because it’s controlled with propane and electronics,” says Deputy Chief Michael Makuch of the University of Connecticut (UCONN) Fire Department, “training with the simulator is a safer and more efficient way to train.” Indeed, the simulator has the abil-ity to customize training, allowing control over the size of the flame and the effort required to extinguish it. The UCONN fire department purchased the training equip-ment with a grant from FM Global. The FM Global Fire Prevention Grant Program is aimed at promoting fire prevention within the fire service industry; that knowledge can then be shared with neighbor-ing communities, thus multiplying the effect of the grants. UCONN is doing just that. They’ve begun instituting a public education com-
“ We experience about 25 aircraft incidents per year, which can include something as simple as a flat tire on a single-engine two-passenger aircraft. However, the potential for something major always exists.”
Fire Chief Jack Thomas T. F. GREEN AIRPORT FIRE-RESCUE
ponent on campus, inviting students and staff to use the simulator during a recent Muscular Dystrophy Association drive. The UCONN fire department has more than 35 full-time firefighters and services more than 400 buildings on the university’s 3,000-acre (1,214-hectares) campus. Per OSHA (Occupational Safety and Health Administration) requirements, their responsibilities include training all university employees. Says Chief John Mancini, “Knowing how to properly and effec-tively handle a fire extinguisher can buy enough time to evacuate a space, pull the alarm, alert others and slow down the fire until firefighters arrive.” The department has completed its own personnel training and is in the process of training facilities personnel. Their next target will be UCONN’s branch campuses.
ISSUE 4 : 2014 [ Reason ] 11
[ theLATEST ][ theLATEST ]
TOOLS OF THE TRADE New purchases, including evidence excavation instruments and scene lights, promote self-sufficiency at a Virginia fire-rescue investigations unit
Gone are the days of processing evidence with axes and using fire vehicles to light investigation scenes for the Norfolk Fire-Rescue (Virginia, USA). With a fire prevention grant awarded by FM Global, fire investigators are now fully equipped with new and improved tools—allowing them to process fire scenes in almost half the time. The grant was used not only to purchase equipment to aid investigators, but to free up other apparatus needed on-site. For instance, investigators had not been able to illuminate fire scenes without relying on generators housed on engines and ladder trucks. Thanks to the grant, they now have their own scene lights, com-plete with tripods and rechargeable batteries, and other trucks are free to leave the scene. The grant also enabled the fire prevention office to fully outfit seven investigators with sets of tools used for evidence excavation. Large tool bags were purchased and filled with hammers, circuit testers, saws, pry bars, pliers, wrenches, scene lights and more—all necessary when digging through rubble, testing for live wires and processing a scene in otherwise complete darkness. When determining if a fire is accidental or a result of arson, time is critical. True arsonists tend to be repeat offenders, generally starting small with dumpsters and cars, before escalating to vacant houses and, ultimately, occupied houses. If arson is suspected, identifying and apprehending a suspect before other arson attempts are made is top priority.
US$2 million Industry average in commercial
and industrial fire losses
160Worldwide grant
recipients in 2013
> US$4 million Awarded to date
FACTS ABOUT FM GLOBAL’S FIRE GRANT PROGRAM
Number of continents grants are available
Consecutive years program has been
in place
385
The average time spent disassembling a scene and process-ing evidence had been about 10 hours; but, with the new tools and equipment, this has been reduced to about six hours. Much of the time saved is due to the new battery-operated steel saws—as opposed to the previously used axes—that allow investigators to work through suspicious areas with greater accuracy, safety and efficiency. “As soon as the department had the grant check in hand, they made their purchases,” says Chief Roger Burris. Now well-worn, the tools have been used in more than 50 fire investigations in the first eight months alone. “FM Global definitely provided us some greatly needed assistance. By enabling us to buy the tools needed to enhance our capabilities, we are far better equipped to protect the public from fire and its causes.”
“ FM Global definitely provided us some greatly needed assistance. By enabling us to buy the tools needed to enhance our capabilities, we are far better equipped to protect the public from fire and its causes.”
Chief Roger Burris NORFOLK, VIRGINIA, FIRE-RESCUE
12 [ Reason ] ISSUE 4 : 2014
[ theLATEST ]
BooksCaution! Paging through these business writings may impact the way you think.
WINNING IN EMERGING MARKETS: A ROAD MAP FOR STRATEGY AND EXECUTION By Tarun Khanna and Krishna G. Palepu (Harvard Business Press)
THIS CHANGES EVERYTHING: CAPITALISM VS. THE CLIMATEBy Naomi Klein (Simon & Schuster)
Tarun Khanna and Krishna Palepu are both professors at Harvard Business School, so it comes as no surprise that Winning in Emerging
Markets, their first book together, comes off as a modified textbook. This is not to say that the book is dusty and academic. Khanna and Palepu present compelling ways for business leaders to seek and find sustainable growth without rushing into unduly risky decisions. Interesting are the real-life examples the authors employ to illustrate success. Compa-nies like Haier, Ayala, GE, the Dogus Group and others help eager readers understand the pitfalls and potential windfalls of approaching emerging market expansions in the correct way. These companies take advantage by finding appropriate ways to overcome “insti-tutional voids,” or those obstacles that many organizations find too daunting to navigate. Instead, they find intermediaries to bridge those voids, and outline an actionable frame-work with which to achieve a foothold in these emerging markets. As you read through the book, you can almost feel a lecture, subsequent charts and homework assignments unfolding. Not neces-sarily a drawback, especially if you’re one of those students who liked to take your reading assignments home with you. In her latest book, Naomi Klein takes on the issue of climate change, to determine why we have not done more to address it. “We are stuck because the actions that would give us the best chance of averting catastrophe—and
ebooks available:APPLE IBOOKSAMAZON KINDLEBARNES & NOBLE NOOKGOOGLE PLAY
would benefit the vast majority—are threaten-ing to an elite minority that has a stranglehold over our economy …” Klein takes a progressive view of the issue, but concedes that both sides, the deniers and advocates, are right about one thing: the scope and the depth of the change required to avert this catastrophe, the deep changes required not just to our energy consumption, but to the “underlying logic” of our economy. “The real reason we are failing to rise to the climate moment is because the actions required directly challenge our reigning eco-nomic paradigm (deregulated capitalism com-bined with public austerity),” writes Klein, an award-winning journalist and critically acclaimed author of the global bestseller, The Shock Doctrine. She explores in detail whether the coun-try and the world are ready for such self-examination and subsequent change. Klein refers often to the insurance industry, and the implications climate change has on the busi-ness model—adding that the insurance indus-try lobby has been, by far, the corporate sector most vocal about the mounting impacts, “with the largest companies employing teams of cli-mate scientists to help them prepare for the disasters to come.” While many of Klein’s suggestions and solutions veer to the drastic side of the equa-tion, she certainly delivers a powerful argu-ment as to how business and industry, if will-ing to undergo significant change, can cope with the pending alterations in climate.
ISSUE 4 : 2014 [ Reason ] 13
[ theLATEST ]
Earthquake ChecklistHere are a few things to consider before the shaking starts
PROTECTION FROM EARTHQUAKE FORCESDETERMINE the structural integrity of existing buildings and other structures.
DETERMINE the loss exposure to contents due to overturning (toppling), sliding, swinging or rupture of:n items that pose a threat of
ensuing firen fire protection systemsn critical building and production
support equipment, production machinery and contents.
FOR ACQUISITIONS AND NEW CONSTRUCTION, establish minimum seismic design criteria.
EXAMPLE OF DIFFERENTIAL MOVEMENT (due to horizontal motion)
earthquake ground motions + building inertia = the effect of seismic wave
PREVENT OVERTURNING PRIORITIZE THE NEED for restraint, based on whether movement would result in fire, other hazardous conditions or significant loss. Consider the equipment’s value, vulnerability, importance to production continuity, location and height-to-base ratio. Remember:n Tall, narrow objects are most
prone to overturning, especially when mass is concentrated near the top.
n Forces can be amplified in the structure; items at the top of the building are more likely to overturn than items at grade level.
PREVENT SLIDING OR SWINGINGPRIORITIZE THE NEED for restraint, applying the same criteria used above in “Prevent Overturning.”n Tabletop equipment and
unanchored low-profile production equipment or utilities may be subject to sliding.
n Common items subject to excessive swinging include suspended ceilings, space heaters, piping and electrical bus ducts.
MINIMIZE RUPTURE CONCERNSIDENTIFY rigid items that are vulnerable to rupture, such as process piping and tanks, utility conduits or any piping where breakage would result in extended interruption of production.n Restrain equipment with
attached utilities to prevent overturning, sliding and excessive swinging.
FOR VULNERABLE PIPING OR CONDUITS, introduce the following improvements:n Sway bracingn Retaining straps for C-clamp
attachments and replacement of power-driven fasteners used in hanger assemblies
n Clearance around pipes and conduits that pass through non-frangible walls and floors
n Flexibility where needed, using swing joints and flexible couplings
n Welded connections in piping systems whenever possible
n Seismically activated automatic shutoff valves for hazardous liquid and gas distribution systems
n Common foundations to support interconnected equipment
n Trenches or dikes of adequate capacity where liquid might be released from ruptured tanks
IMPLEMENT AN ANCHORAGE/BRACING POLICY whenever equipment and piping is installed or relocated.
FOR DESIGN ISSUES, engage qualified engineering consultants specializing in earthquake evaluation and rehabilitation.
TO MITIGATE OVERTURNING for high-priority items:n Anchor the item to the floor or
adjacent wall.n Improve stability by grouping
items together, and bolting or bracing them to each other.
n Move heavier items to lower storage shelves.
100
80
60
40
20
0VI VII VIII IX X XI XII
Modified Mercalli Intensity (MMI)
Perc
enta
ge O
f Dam
age
To B
uild
ing
UNREINFORCED MASONRY BEARING WALL BUILDING
LIGHT-METAL BUILDING
COMPARISON OF PREDICTED SHAKE LOSS EXPECTANCIES(90-Percent Confidence of Non-Exceedance) for Low-Rise Buildings
Source: Applied Technology Council reports ATC-13 and ATC-13-1
*during a recent 10-year period at FM Global client facilities
561 earthquake-related loss incidents totaling nearly
US$315 million of damage to their facility*
TO PROTECT HIGH-PRIORITY ITEMS from damage caused by sliding or swinging:n Anchor floor-supported items to
the floor or adjacent wall.n Brace suspended items to the
structure from which they are suspended.
n Install restraining devices at the edge of shelving or tables to prevent items from falling.
n ■■■Restrain suspended lighting fixtures in warehouses if they can impact adjacent items.
ROUGHLY of the earthquake loss was due to
SHAKE DAMAGE*
75%
14 [ Reason ] ISSUE 4 : 2014
[ theLATEST ]
Teachable MomentsFM Global clients have access to free, industry-leading training in an array of formats
INSTRUCTOR-LED TRAINING IN 30 COUNTRIES
62,750 PARTICIPANTSACCESSING ONLINE TRAINING
THROUGH END OF 2013
SELECT TRAINING OFFERED IN10 LANGUAGES
FRENCH
ENGLISHRUSSIANGERMAN
SPANISH
DUTCH
KOREAN
JAPANESE
PORTUGUESE(BRAZILIAN)
MANDARIN
11 KNOW MORE RISK
VIDEOS
21 CLIENTTRAINING INTEGRATIONS
(training is integrated into a client’s internal learning system)
SUPPLY CHAIN
HOUSEKEEPING
EMERGENCIES
FIRE PROTECTION SYSTEMS
IGNITABLE LIQUID
FIRE + EXPLOSION HAZARDS
EQUIPMENT HAZARDS
17 TOPICSFOR E-LEARNING
COURSES
EARTHQUAKESPRINKLERSFIRE PUMPSWINDSTORM
STORAGEFLOODVALVES
HOT WORKDUST
IMPAIRMENTS
20,000 HOURS
INSTRUCTOR-LED LIVE TRAINING ANNUALLY
60 TRAINING WEBINARS
16TRAINING
PODCASTS
Just Make It HappenTalking (and worrying) about supply chain weaknesses is one thing. Doing something about that vulnerability is another.
In order to meet that vaunted “just in time” performance mandate, manufacturers and retailers have trimmed their supply chains to save money. This is a lot like stretching a rubber band till it nearly snaps. Seat-of-the-pants organiza-tions have engineered their supply chains to the breaking point, creating nimble and efficient processes—but also, woefully vulnerable ones. Would you enter a Formula 1 car race without spare tires in the pit? u
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A single event at a supplier’s location—a fire, a storm, bankruptcy or an act of terror—could suddenly snap a brittle supply chain and leave an otherwise high-performing company in dire straits. The wounded firm, crippled momentarily, must heal quickly, or it becomes prey to competitors who, more than likely, have taken pains to make themselves resilient.
FlexibilityIn his book, The Resilient Enterprise, MIT’s Yossi Sheffi writes about the power of flex-ibility. “An organization’s ability to recover from disruption quickly can be improved by building redundancy and flexibility into its supply chain. While investing in redundancy represents a pure cost increase, investing in flexibility yields many additional benefits for day-to-day operations.” Sheffi states that standardization is an important strategy for flexibility. Adhering to standards in processes and product devel-opment dramatically simplifies switching suppliers, if necessary, or moving employ-ees to new locations or roles. Cross-training also fosters flexibility, enabling employ-ees to fill in where they’re unexpectedly needed.
TransparencyWhen the supply chain is interrupted, every-body needs to know what happened and why. The more available the intelligence, the better the organization can respond as it switches supply routes, reschedules deliver-ies and minimizes disruption any way it can. Transparency also means having full day-to-day visibility into the entire supply chain. This visibility needs to go beyond the main supplier level to suppliers’ suppliers and their vulnerabilities. As in so many elements of managing a successful enterprise, a business is only as resilient as the least resilient part of its sup-ply chain. That’s why it’s critical to under-stand the strength of subcontracted suppliers in a given region or vertical industry.
Ethical foundationThough hard to quantify, an ethical culture is essential to a resilient supply chain, in part because it infuses the other three factors of resilience. Without a strong ethical cul-ture, it’s hard to operate with transparency, flexibility and robustness. Unethical com-promises in the interest of short-term cost reduction, for example, can lead to underin-vestment in protecting facilities from natural
A single event at a supplier’s loca-tion—a fire, a storm, bankruptcy or an act of terror—could suddenly snap a brittle supply chain and leave an otherwise high-performing company in dire straits. The wounded firm, crippled momentarily, must heal quickly, or it becomes prey to competi-tors who, more than likely, have taken pains to make themselves resilient. Many recent examples exist, but the Thailand flood of 2011 presents one of the most vivid. Surging waters interrupted the manufacturing processes for hard drive mak-ers. Yet, Seagate managed to meet its cus-tomer demand the best. Because of this, the company ended the year with a 36 percent revenue increase and vaulted to a leader-ship position within that market. Toshiba, its rival, blamed the floods. They were obvi-ously ill-prepared to deal with the interrup-tion and ended up slashing their full-year profit outlook significantly. There are other factors behind weak supply chains, like poor labor conditions, untrained employees and an eagerness to cut corners on risk management. These factors weaken the economic viability of a manu-facturer and often put lives at risk in the process. The collapse of a garment factory in Bangladesh, for example, has resulted
in an intensified focus on safety and build-ing codes. Hopefully, those relatively minor building code interruptions will result in fewer tragic disasters. Still, contingencies need to be in place and disruptions taken into account. Supply chain vulnerabilities like these devastate otherwise healthy companies every day. When supply chains break down, customers don’t get products, companies lose revenue, brand reputations take a hit, and the company itself goes into a nosedive.
One answerNo one wants that supply chain to snap. Everybody wants their supply chain to be resilient. But what exactly does it mean for a supply chain to be resilient? Well, for one, a resilient supply chain is only briefly inter-rupted when an event occurs, and economic impact and operational impact are only min-imal. A resilient supply chain puts a com-pany in the same position as Seagate during the Thailand flood: an enviable position that allows a company to grab market share from its rivals. Resilience is a journey, and the best place to start is by considering four factors of resilience: flexibility, transparency, ethics and robustness.
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disasters or corruption. Successful organiza-tions have strengthened their ethical foun-dations with cultural narratives and actions that ensure that business goals don’t incent unethical behavior, and that any misconduct is exposed quickly.
Small, focused investmentsA robust supply chain is a resilient supply chain. Robustness comes from a multitude of factors, including well-maintained transpor-tation infrastructures, economies resistant to shocks, and protections against storms, fire and earthquakes. As business leaders make decisions about where to locate offices, plants and distribution hubs, they need to evaluate all of these factors, as well as oth-ers that affect the quality of supply chains in individual countries. The question is, “How much will resil-ience cost?” In the transition to globaliza-tion, corporations have strategized, fought and clawed their way toward ever more lean supply chains. Do they now have to spend the money protecting that supply chain they saved while creating it? The short answer is, no, they don’t. Small, focused investments in resilience can make a big impact on business continuity and, in turn, performance. So it’s not a mat-ter of choosing efficiency over resilience. With a good bit of work, lots of intelligence and a little ingenuity, it is indeed possible to have both: to be lean without being brittle. That is, plan to run a good race. But just in case things don’t go well, it’s nice to have a set of spare tires in the event something unexpected happens.
THE DYNAMIC: 8 STAGES OF DISRUPTION
Any significant disruption will have a typical profile in terms of its effect on company performance, whether that performance is measured by sales, production level, profits, customer service or another relevant metric. The nature of the disruption and the dynamics of the company’s response can be characterized by the following eight phases.
A company can foresee and prepare for disruption, minimizing its effects. In other cases, such as 9/11, there is little or no warning.
The tornado hits, the bomb explodes, a supplier goes out of business or the union begins a wildcat strike.
Whether there’s a physical disruption, a job action or an informa-tion technology disruption, first response is aimed at controlling the situation, saving or protecting lives, shutting down affected systems and preventing further damage.
The full impact of some disruptions is felt immediately. Other disruptions can take time to affect a company, depending on magnitude of the disruption, the available redundancy, and the inherent resilience of the organization and its supply chain.
Whether immediate or delayed, once the full impact hits, perfor-mance often drops precipitously.
Preparations for recovery typically start in parallel with the first response and sometimes even prior to the disruption, if it has been anticipated.
To get back to normal operations levels, many companies make up for lost production by running at higher-than-normal utilization, using overtime as well as suppliers’ and customers’ resources.
It typically takes time to recover from disruptions, but if customer relationships are damaged, the impact can be especially long-last-ing and difficult to recover from. Most buyers never come back.
PREPARATION
DISRUPTIVE EVENT
FULL IMPACT
FIRST RESPONSE
RECOVERY PREPARATIONS
RECOVERY
LONG-TERM IMPACT
INITIAL IMPACT
For more information about supply chain resilience, take a look at the FM Global Resilience Index, a data-driven tool and repository that ranks the business resilience of 130 countries. With nine key drivers of supply chain risk measured, it is designed to help executives evaluate and manage supply chain risk.
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European companies are becoming dependent on the emerging economies for production, new facilities
and customers. Today, over half of the income from the Fortune Global 500 occurs outside the country of domi-cile, proving we have shifted toward a truly global busi-ness landscape. More than 90 Global 500 companies are headquartered in emerging markets, whereas, in 1996, there were none. This shift means many businesses are facing new risks that must be analyzed, understood and overcome.
Long Distance RelationshipsData and analysis, when used in combination with judicious risk management, can help businesses sidestep potential pitfalls due to overseas relocation, outsourcing and operations
OutsourcingA growing number of businesses are out-sourcing manufacturing and purchasing parts and services from outside companies, using techniques such as just-in-time inven-tory strategies and relying on single-source vendors. While the financial benefits are obvious, the added risks are often over-looked. When transferring a significant por-tion of the day-to-day operating risk to a sup-plier, a business is vulnerable to the financial consequences of major supply disruption. It is not that companies should never outsource to higher-risk countries; rather, they can help themselves by factoring the attendant risks into the decision-making process and, having identified those poten-tial risks, put measures in place to prevent them from becoming a reality.
Extended supply chainsMultinationals are beginning to look at changing the way supply chains are designed. Problems can be exacerbated by the continuing issue of the clustering of industries in one location. When there is a high concentration of manufacturers of a specific product in one area, and a natural disaster strikes, companies may find they have no supply chain alternative. Businesses need to make sure they have a plan B. The 2011 tsunami in Japan is a good example. Unforeseen disaster halted the supply of many products, resulting in sig-nificant aggregate loss to market. One of the key lessons learned was just how complex the supply chain was, particularly in the automotive industry, which was radically affected by the quake and tsunami. Some manufacturers suffered more than others, and it is well-documented that particular models were out of production longer than
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others. For affected companies, this dam-aged their income streams and brand repu-tation. It was inevitable that the businesses that returned to production sooner gained competitive advantage.
Natural catastrophesOne key issue businesses need to consider is natural catastrophe exposure. As more companies are locating in, and supplying to, rapidly developing economies, they often unknowingly take on greater exposure to natural disasters, lower safety standards and less reliable legal systems. Businesses must acknowledge the new risks and protect their bottom lines. The Thailand floods a couple of years ago caught many companies by surprise, although they shouldn’t have, considering that affected businesses were located in a flood zone. While many electronics manu-facturers were adversely affected, compa-nies with strong risk management solutions in place managed to get back on their feet more quickly. The message is clear: Companies that are well risk-managed will withstand losses more effectively than those that are not. Companies that seek market-leading loss prevention advice across their networks are far more likely to implement solutions to mitigate risks. If they do, companies will recover well and prove themselves to be resilient in a complex supply chain environ-ment. They gain credit for their recovery plans and find their reputation considerably enhanced.
Using data to identify and prioritize riskBusinesses cannot afford to experience an interruption in production, as this will
prevent them from providing products or services, resulting in a negative impact on market share and even shareholder value. Companies that manage risks well see less interruption to product flow. This bolsters their reputation as reliable suppliers. How then, can executives strengthen their busi-nesses, mitigate risks and ensure that resil-ience remains a competitive advantage? To make good supply chain decisions requires lots of data and context. When building resilience to natural catastrophes and other property losses, companies need to have a better understanding of how the risk landscape has changed, in order to identify the “pinch points” where problems may cause business interruption. Using data,
companies can analyze the risks they face and prevent or control them.
New data from the Resilience IndexFM Global has spent nearly two centuries analyzing risks and helping companies pre-vent business interruption. The company partnered with Oxford Metrica, amassing hard, reliable, resilience-related data to help organizations answer the question, “Where in the world is your company vulnerable?” The result is a first-of-its-kind, inter-active online tool called the FM Global Resilience Index. It ranks the supply chain resilience of 130 countries around the world, helping executives prioritize where
1Selecting suppliers
based on the supply chain
risk/resilience of the countries
in which they are located
2Deciding where to
locate facilities
3Evaluating the resilience of the countries
hosting existing facilities
4Assessing the supply chain
resilience of countries
where customers’
facilities are based
THE BASICS: RESILIENCE INDEX CRITERIA
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they should focus their risk management and investment efforts. The index aggre-gates nine drivers of resilience into three factors—economic, risk quality and the supply chain itself. The idea was to give decision-makers the data to enable them to generate powerful insights about risk and opportunities in the supply chain to guide their operating strat-egy in four key areas: 1. Selecting suppliers based on the supply
chain risk/resilience of the countries in which they are located
2. Deciding where to locate facilities 3. Evaluating the resilience of the coun-
tries hosting existing facilities 4. Assessing the supply chain resilience
of countries where customers’ facilities are based
We found that countries with strong econ-omies, high-quality infrastructures and a high level of risk quality (such as fire safety standards) score well. This is why Norway, Switzerland and Canada appear in the top three slots in 2014. Norway leads the way, helped by its North Sea energy supply, mak-ing it highly resistant to the threat posed by any shock to energy prices. Ireland, in spite of its 27th position for supply chain drivers, makes it into the top five because of its strong commitment to risk management and low exposure to natural hazards. By contrast, the Philippines (14th from the bottom) has a huge exposure to nat-ural hazard risk, as the slow recovery from Typhoon Haiyan has shown, and too little economic strength to demonstrate strong resilience. Because the data are refreshed annu-ally, the Resilience Index also enables exec-utives to identify countries that are working
to make themselves more attractive supply chain partners. In 2014, Bosnia and Her-zegovina rose 19 places due to significant improvements in its infrastructure as well as in the quality of its suppliers. Other big risers are Armenia, Tajiki-stan, Kazakhstan and Jordan. In the case of Tajikistan and Kazakhstan, the improve-ments are due to improved quality in fire risk management, while Armenia and Jor-dan enhanced their natural hazard risk man-agement capabilities. Greece, while it only rose one position in the composite rankings, made the biggest improvement in risk qual-ity, which balanced out its poorer political and economic environment. The Resilience Index also reveals sur-prising rankings for some leading econo-mies with apparently strong supply chains. South Korea (69) has strong scores on eco-nomic factors, but is dragged down by its risk quality scores, which capture exposure to natural hazards, quality of natural haz-ard risk management and quality of fire risk management. Companies now have more access to data and information about the countries in which they operate. As we become more reliant on outsourcing various operations, it’s important that we fully understand our new risk exposures. The Resilience Index, and other tools like it, will help U.K. businesses understand exactly where they are susceptible to loss. Sophisticated and broad insurance is crucial for any business, but it is only part of the story. To avoid permanent loss of market share and share price slides, businesses must use data and technology to analyze supply chain decisions, improve their risk profiles and mitigate loss.
You’re only as strong as your weakest link. The FM Global Resilience Index is the first tool designed to rank countries’ supply chain resilience.
To find out where in the world your company is vulnerable, log on to fmglobal.com/ resilienceindex.
Resilience Index
“ There’s endless value inherent in a tool like the FM Global Resilience Index.”
Margareta Wahlström U.N. SPECIAL REPRESENTATIVE OF THE SECRETARY-
GENERAL FOR DISASTER RISK REDUCTION
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WHERE THERE’S SMOKE … A groundbreaking study emerges on smoke dilution and detection in high airflow data centers
Companies lose an average of US$7,908 per minute when their data centers go down, according to a research report by
Ponemon Institute published in December 2013. A fire of any size in a data center—a frequent cause of disruption—can be catastrophic due to our ever-expanding need for information and the sheer vol-ume of data that exists. u
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In March 2008, a fire destroyed 75 servers, routers and switches in a Wiscon-sin, USA, data center causing more than 10 days of disruption to customers. Municipal operations in Calgary, Alberta, Canada, were disrupted due to a fire in July 2012, severely limiting many services and forcing area hospitals to delay surgeries. Macomb County, Michigan, USA, declared a state of emergency after its information technology (IT) service went offline following a fire that damaged the building that houses the coun-ty’s data centers.
As part of its evolving business strat-egy to advance fire protection and help clients reduce and prevent property loss, FM Global recently completed a large-scale experimental study. They worked in partner-ship with the National Fire Protection Asso-ciation’s (NFPA) Fire Protection Research Foundation (FPRF) to design and perform the research, with Hughes Associates Inc. selected as the project contractor. “This study was a great example of col-laboration between various organizations including NFPA’s FPRF, FM Global and Hughes Associates,” explains Sai Kumar Thumuluru, FM Global senior research scien-tist and project leader. “It is a coming together of various organizations with a single goal in mind: improving smoke detection and mini-mizing disasters in data centers.”
The studyResearchers mapped data center air- and smoke-flow patterns from experimental data
and validated computer models to be used for placing smoke detectors within data pro-cessing equipment rooms and halls. Before applying models to improve engineering codes and standards, such model validation with relevant data is necessary. The test find-ings will allow updating of FM Global Prop-erty Loss Prevention Data Sheets as well as NFPA’s consensus standards, on the place-ment of smoke detectors in data centers. “Last year, data center fires at cli-ent facilities resulted in average losses of US$17 million. Our belief is that the major-
ity of loss is preventable through engineering and research,” says Dr. Louis Gritzo, vice president, research manager for FM Global. “These unique and novel experiments will help make our clients’ data centers more resil-ient and less prone to business interruption.” The report, published in September, Experimental Data for Model Valida-tion of Smoke Transport in Data Centers, can be downloaded on the Research page at FM Global’s website (fmglobal.com/researchreports). A video on FM Global’s YouTube channel explains the methodology behind the testing, the building of the mock data center and the objectives of the project. There is also footage of the testing itself and of FM Global’s patented laser system developed for the purposes of this study. From a risk standpoint, the indirect impact of fire loss due to business interrup-tion and loss of critical operations, some-times geographically very distant from the data facility itself, can far outweigh the
direct property loss. Better fire protection—more specifically proper placement of smoke detection units—is needed.
The relevanceIntelligent placement of smoke detectors is critical in detecting fires, but current codes and standards specify smoke detector place-ment based on ceiling heights. Limited analysis of the relationship between smoke transport and smoke detector response in high airflow environments has made it impossible to optimize smoke detector placement in data centers. This ground-breaking research will provide data needed to determine optimal placement of smoke detectors for detecting fires at the earliest possible moment. “FM Global has spent years developing a good fire and combus-tion model,” says Chris Wieczorek, research group manager at FM Global. “Because we have the ability for live fire testing of this scale and magnitude, we are able to provide guidance, internally with our clients and externally in the overall industry, for protect-ing facilities and minimizing loss.” A number of studies have focused on the airflow distribution and heat transfer within a data center environment and not on smoke transport. These studies have been limited to studying the smoke detector response in simpler test configurations and under less complex airflow patterns. (For current guid-ance for the placement of smoke detectors in large data centers, see FM Global Property Loss Prevention Data Sheet 5-32, Data Cen-ters and Related Facilities, and NFPA 75, Standard for the Fire Protection of Informa-tion Technology Equipment. This new study now provides data for providing updated guidance to the NFPA’s technical standards committees. This study was specifically aimed at high airflow environments due to the inher-ent dilution effects that make it difficult for smoke detectors to function optimally in continuously moving air. “Our clients rely on information systems to run their opera-tions without interruption; the ability to
“ Last year, data center fires at client facilities resulted in average losses of US$17 million… These unique and novel experiments will help make our clients’ data centers more resilient and less prone to business interruption.”
Dr. Louis Gritzo VICE PRESIDENT, RESEARCH MANAGER FOR FM GLOBAL
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meet their current and future needs are the driver for us contributing to this important initiative,” Gritzo pointed out. Data centers in particular were ideal in part because they require both cool air to be pumped in and hot air to be expelled due to the heat and high energy usage of com-puter servers. Also, many of the flammable components in data centers, such as servers, circuit boards and electrical cables tend to smolder rather than ignite, and that could potentially create problems in detection. A data center can be a single server rack, or a room containing hundreds of server racks that are critical to business operations, housing systems that hold account, personal and proprietary information. Increased data processing and storage needs by industry and governments, along with a rapid growth in communication volumes and speeds, has resulted in a rapid rise in the building of data centers. “When we think of data centers, we think of the giants such as Twitter, Google and Amazon,” says Wieczorek. “But busi-nesses of all sizes are now housing their own data centers.”
The scienceIn 2013, FM Global scientists led by Sai Thumuluru, senior research scientist at the Center for Property Risk Solutions, ran more than 100 tests to examine airflow and smoke transport within different data center designs. Large-scale tests were a major com-ponent of the research project and were con-ducted at FM Global’s Research Campus. “Providing experimental data on a large scale is a big challenge,” Thumuluru points out. “Large-scale studies are more difficult to build than small-scale studies and require far more resources including instrumentation, effort and money. The payoff is that the results are far more applicable to the real world.” FM Global researchers developed a data center mock-up, in collaboration with the NFPA FPRF project panel, in the Small Burn Laboratory at the Research Campus. Measuring 16 feet (4.9 m) wide and 24 feet (7.3 m) long with 34 feet (10.3 m) of server
TEST ENCLOSURE VIEWS
Top: Side elevation view of test enclosureAbove: Overview of server room portion of test enclosure
SERVERCABINETS
SERVERROOM
HOT AISLE(3.05 m
elevation)
ENCLOSED COLD AISLE(1.8 m elevation)
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cabinets, the test enclosure took more than two months to construct and consisted of three main sections: a subfloor from which the inlet air was drawn, a server room con-taining two rows of server cabinets in a hot and confined cold aisle design, and the ceiling plenum through which the exhaust air and smoke were drawn through a fan. Refurbished server cabinets were installed to accurately represent airflow conditions in a real data center.
TestingTesting was divided into two phases with the primary objective being to provide an experimental dataset for validation of computational models: a) characterization of airflow with detailed velocity measure-ments, and b) smoke concentration mea-surements and smoke detector response to various smoke sources possible in a data processing equipment room or hall.
Airflow Characterization TestsBefore conducting the smoke transport tests, scientists extensively mapped airflow veloci-ties within the test setup, at both high and low air exchange rates. Airflow characteriza-tion tests at more than 100 locations within the test enclosure were conducted using an advanced three-component velocity measure-ment technique (sonic anemometer). These measurements are important for establishing the baseline airflow pattern and, therefore, the smoke transport in the test setup.
Smoke Concentration and Smoke Detector Response MeasurementsTen large-scale smoke distribution tests were conducted at both high and low air exchange rates to measure smoke concentrations and smoke detector responses at various loca-tions of the room.
Smoke DetectorsNine clusters of smoke detectors were placed in sets of three at three locations: in the sub-floor, server room and ceiling plenum. Each cluster consisted of one aspirated smoke
PATENTED LASER DEVELOPED BY FM GLOBAL
AIRFLOW
WALL (WEST)
NORTHSOUTHCEILING PLENUM
EAST (INLET)
EAST (OUTLET)
x=0, y=0
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Overview schematic of aspirated laser
Test setup schematic showing airflow direction in the enclosure sectionsOnly one set of server cabinet locations shown (in blue)
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detector and two spot smoke detectors, for a total of twenty-seven detectors. Smoke Sources Four smoke sources were involved in the testing: a burner with a 10 kW propylene flame (located in the hot aisle and sub-floor), polyethylene foam packaging mate-rial (located in the cold aisle), printed cir-cuit boards (located inside the cabinets) and
cables (located in the subfloor). The burner represented a steady-state smoke source pro-duced from flaming combustion, whereas the foam, circuit boards and cables represented transient smoke sources using combustible materials common to data centers.
Smoke Concentration MetersMeasuring low levels of smoke concen-tration has always been a considerable challenge, and for this study, scientists at FM Global developed (and patented) an aspirated smoke concentration meter. The smoke concentration meter used laser light extinction and gravimetric filtering methods at one location each in the subfloor, server room and the ceiling plenum. “Of primary importance is the characterization of the smoke concentration in the vicinity of the smoke detectors,” says Sergey Dorofeev, area director for fire hazards and protection at FM Global Research. “The measurements of smoke concentration were the key to the overall success of the project. It is the very data that are needed for validation of com-putational models for smoke transport. It is
these data that lay the foundation for vali-dated tools that will be used to design smoke detector placement locations in various installations.”
The outcomeThe testing successfully developed large-scale experimental data to validate compu-tational models and build on in future fire protection solutions in data centers.
“The project involved many mov-ing parts,” says Ben Ditch, FM Global senior research engineer and coauthor of the research technical report, “including the design and instrumentation of the test facility, development of the [now patented] smoke concentration meter and maintaining interests among the many stakeholders,” all in which Ditch played a major role. These results show that understand-ing the impact of air exchange rate on both smoke concentration and transport time is critical for proper smoke detector placement. Data centers are particularly sensitive to air exchange rates and smoke detector placement, and this groundbreak-ing research provides a benchmark dataset that will be an invaluable asset for provid-ing guidance in smoke detection to ensure reliable fire protection in data centers.
“ Providing experimental data on a large scale is a big challenge. Large-scale studies are more difficult to build than small-scale studies and require far more resources including instrumentation, effort and money. The payoff is that the results are far more applicable to the real world.”
Sai Kumar Thumuluru FM GLOBAL SENIOR RESEARCH SCIENTIST AND PROJECT LEADER
Tune in to FM Global’s YouTube channelyoutube.com/fmglobal
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MAN VS. NATUREGeomagnetic storms occur
when a burst of charged particles from the sun hits the
earth’s magnetic field, and power grids take the brunt.
Numerous thought-provoking articles have been published in the media and
science journals describing doomsday sce-narios associated with geomagnetic distur-bance (GMD). That is, no more working cell phones, cars, planes, computers, television, radio, etc., all of which have been posited as consequences. Studies show that public util-ities may stop working, leading to a massive planetary blackout. Oil and gas pipelines, communication lines and transportation net-works could be severely affected. Economic infrastructure might potentially come to a halt, resulting in food and water shortages. Recovering from such catastrophic events could take several months and cost trillions to the world economy. When it comes to our electrical grid, there are some who believe that the most likely worst-case impact of GMDs may result in a short-term regional power system outage due to instability in the grid and a voltage collapse, and that only “old” trans-formers may be affected.
The factsGMD is a result of solar activity that under-goes periodic change with an average dura-
tion of about 11 years. The sun gives out a massive burst of charged particles known as coronal mass ejection (CME). These charged particles interact with the earth’s magnetic field producing geomagnetic storms. Metal-lic structures spanning long distances, such as transmission lines, pipelines and railway tracks, act as antennae to these storms. This interaction leads to geomagnetically induced currents (GIC) flowing through these struc-tures. GIC in the electric power grid affects the operation of equipment and the system as a whole. These effects are collectively known as GMD. The first observation of the effects of a geomagnetic storm occurred on Dec. 21, 1806, when Alexander von Humboldt noticed his compass had become erratic dur-ing a bright auroral event. On Sept. 1, 1859, the largest recorded geomagnetic storm occurred, also known as the Carrington Event. Astronomer Rich-ard Carrington observed a solar flare that was associated with a major CME traveling directly toward Earth. The resulting GMD caused telegraph systems all over Europe and North America to fail. Telegraph opera-tors got electric shocks, telegraph pylons
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threw sparks and some telegraph systems continued to send and receive messages de-spite being disconnected from their power supplies. The potential disruptive impact of GMDs was experienced by modern society in March 1989. GIC in the Hydro-Québec grid caused cascaded tripping of numerous transmission lines within 75 seconds. Six million Hydro-Québec customers lost power for up to nine hours. Other events were also reported across North America, including the failure of the generator step-up trans-former at the Salem Nuclear Power Plant in New Jersey (USA).
The “Halloween Storm” on Oct. 30, 2003, allegedly caused a blackout lasting 20 – 50 minutes in the Malmö region (Sweden) affecting some 50,000 customers. Report-edly two transformers at a Swedish nuclear power plant had to be replaced and, inter-estingly, this same storm purportedly dam-aged 15 transformers in South Africa, some beyond repair. It is worth noting that the latter storms were significantly less severe (with a lower intensity of charged particles) than the Car-rington Event, which is currently considered the “worst-case scenario” for evaluating robustness of the power grid against GMD. The recent growth in the number of trans-mission lines has significantly increased our economic and social vulnerability to such storms. The effects of GMD on the power grid have hence gained considerable interest in the power generation industry. While the probability of an extreme storm occurring is relatively low at any given time, it is almost
inevitable that one will occur eventually. Historical auroral records suggest a return period of 50 years for Québec-level storms and 150 years for very extreme storms of the magnitude of the Carrington Event.
The solutionsFollowing a National Academy of Sciences (NAS) report on GMD in 2008, the North American Electric Reliability Corporation (NERC) established a task force to identify and limit the risk exposure of GMD. This task force consists of members represent-ing utility, equipment manufacturers and researchers from academia and industry.
FM Global is part of this task force. In May 2013, the Federal Energy Regulatory Com-mission (FERC) directed NERC to develop reliability standards to help equipment own-ers and operators develop and implement plans to address GMDs. As part of this direc-tive, standards addressing operational proce-dures to mitigate the effects of GMDs have been issued. They define the role of trans-mission and generator operators prior to an event, during an event and while returning to normal operation. Alerts from the Space Weather Prediction Center (SWPC) consti-tute a vital part of the measures to protect the grid. To further help the industry, NERC is also developing guidelines to calculate GIC for system assessment studies. Factors that influence the degree of GIC risk to grid and equipment include the geomagnetic latitude, local ground resistivity, the network con-figuration, etc. More specifically, systems located above 60 degrees latitude and close
to the coast can experience significantly increased GIC levels in the grid, which in turn increases risk. The task force is focused on providing guidelines to model transform-ers in GMD studies as well. Also, for elec-trical engineers, it takes variable absorption, harmonic generation and thermal effects due to GIC into consideration. Researchers worldwide are also work-ing on protection devices and their impact on the normal operation of the power grid. Some designs have been installed, while a few other prototypes are currently being tested and run on a pilot basis. With so much work being done in this area, equipment owners and providers have the earnest task of keeping abreast of the latest developments, but where to start? A GMD assessment study, based on the cur-rent NERC guidelines, is vital. Once the vulnerabilities have been identified, particu-lar “hardening” steps should be addressed, which may involve changes in operational procedures, modification to the grid compo-nents or both. A particular focus needs to be given to transformers nearing end of life or those with known issues, as these are consid-ered particularly vulnerable.
The futureFM Global continues to improve its under-standing of the risk and seek cost-effective solutions. The company is available and interested in working with clients that have conducted studies and/or implemented mea-sures to protect their systems against the consequences of GMD-induced failures, or are interested in doing so in the future. Ulti-mately, protecting our power grid will ben-efit all the FM Global mutual policyholders. Please contact your client service team if you are interested and are not already collaborat-ing with our research and engineering teams.
While the probability of an extreme storm occurring is relatively low at any given time, it is almost inevitable that one will occur eventually. Historical auroral records suggest a return period of 50 years for Québec-level storms and 150 years for very extreme storms of the magnitude of the Carrington Event.
Dr. Sujit Purushothaman is an FM Global senior research engineer, and Erik Verloop is an FM Global senior staff engineering specialist, power generation.
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[ theSCIENCE ]
Aluminum—a major consumer metal used in packaging, transportation and
construction—is produced from a mineral called bauxite which occurs naturally as alu-minum oxide. Bauxite is mined and chemi-cally processed to a pure powder form called alumina. Alumina has a very high melting point and cannot be processed practically with-out mixing with other materials to lower its melting point. Since the 1800s, the only eco-nomical way to do this has been by using massive amounts of electricity in small smelter furnaces called pots. A typical alu-minum smelter will have hundreds of pots in a continuous circuit called a potline, fed by a public utility or on-site power generation in a very complex electrical system. Power supply and all electrical equipment thus must be designed to provide maximum reli-ability and continuity of operations. In order to improve efficiency and lower the cost of production, advances in technology have introduced larger pots,
WHAT’S THAT SMELTER?
A new field audit procedure helps to mitigate a
common equipment hazard in aluminum smelters.
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[ theSCIENCE ]
higher potline currents, and more automa-tion with less manpower. Higher potline currents require larger power supplies with many sites now installing on-site power gen-eration. The advances in potline technology have also introduced increased complex-ity for electrical power system design and shortened the period of time that a potline can survive without power.
A potline freeze is caused when there is an interruption to the potline power sup-ply long enough to result in the metal and electrolyte in the pot freezing (solidify-ing). This cannot be remelted by electrical means due to poor conductivity. The frozen electrolyte often needs to be physically removed. This can result in all or many of the pots needing to be torn apart and rebuilt, a long and costly process. Site power demands used to be in the order of 700 megawatts. New large plants can require up to 3 gigawatts (3000 mega-watts) of power. (Due to the availability of natural gas, smelters in the Middle East typically fall into this category, using on-site power generated from gas turbines.) To put this in perspective, this is equivalent to two large nuclear power plants, or enough power for two million homes. A further complication arises when smelters have combined power supplies, i.e., their own on-site generation plus feed from the electrical grid. The interconnection of on-site and off-site electrical systems pres-ents a potentially complex configuration that needs very careful design, high operating reliability, system resilience and oversight
management systems to ensure successful recovery following any loss of power prior to potline freeze. In the past decade there has been an increase in potline freeze incidents in the industry with roughly one loss per year spread over all the estimated 200 aluminum smelters throughout the world. Almost all of these events have been caused by failure of
some part of the electrical power systems and the inability to reinstate power in time to prevent a potline freeze. To address this, FM Global formed a team called the Electrical Specialists for Aluminum (ESAL). It comprises senior FM Global engineers, the corporate prin-cipal engineer of molten materials, account engineers who have aluminum industry cli-ents, and members of the company’s high hazard leadership team (HHLT) that special-izes in molten materials. A field audit procedure and tool called the Electrical System Reliability and Recov-ery Audit was developed completely in-house by the team. FM Global ESAL engi-neers, who have extensive expertise in the aluminum smelting industry in addition to being degreed electrical engineers, have applied the audit procedure in 10 global smelters insured by FM Global. At the onset there was some scepticism shown by clients as to what value this audit would add. Upon completion, client percep-tion went from suspicious to pleased. Feed-back ranged from, “We valued the outside set of eyes reviewing these items,” to, “We are very aligned with the approach and have
welcomed this third party review.” One CEO went so far as to question why the audits were not implemented sooner, all confirm-ing the benefit derived from the process. ESAL audits focus on the following questions:■n How sensitive is the electrical system to
blackouts?■n Can the plant recover from a blackout
prior to potline freeze?■n What can or needs to be done to im-
prove the electrical system, its manage-ment and operator response to a sudden blackout?
During the audit, ESAL engineers meet with site electrical engineers solely to understand the electrical system serving the smelter and to study various scenarios for recovery in case of failures. Potline freeze losses can be catastrophic, and the reliabil-ity of a smelter’s electrical system depends on critical items such as generation dis-patch practices, load shedding practices, and dynamic and transient system studies—all of which are reviewed and discussed. The audit procedure has demonstrated that risk differentiation and risk improve-ment possibilities could be identified and communicated for clients to protect their business.
Larry Moore is assistant vice president, senior engineering technical specialist at FM Global
In the past decade there has been an increase in potline freeze incidents in the industry, with roughly one loss per year spread over all the estimated 200 aluminum smelters throughout the world. Almost all of these events have been caused by failure of some part of the electrical power systems and the inability to reinstate power in time to prevent a potline freeze.
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[ theSCIENCE ]
Protection Against Exposure and Natural HazardsWell-protected facilities take into consideration hazards posed by conditions outside the facility, including exposure hazards created by nearby buildings. Buildings are designed and built to withstand windstorms normally expected in the geographic area. This includes properly anchored roof framings and decks, adequate adhesion or fastening of roof coverings (particularly at corners and perimeters), and adequate fastening of perimeter flashing. Roof decking, covering and flashing are properly maintained.
SUPER-RESILIENT
PROPERTY
QUALITIESof a
A large public university campus in an urban
setting is similar to running a small city. And,
like a city, success can depend on how well
you get along with your neighbors. As with all qualities of
a well-protected property, good preplanning, communi-
cation, awareness and training can make a difference in
whether you recover quickly from a disaster—or not.
YVONNE MARIE KEAFER, UNIVERSITY OF PITTSBURGH
Read about all 10 qualities of a super-resilient property at fmglobalreason.com.
THE 10 QUALITIES OF A SUPER- R-ESILIENT FACILITY
VOICES
TALKING POINTS with Marifrances McGinn, risk manager and general counsel, Providence College
Talk about how you became involved in risk management.In the beginning of my career I was city solicitor in a town in Rhode Island [USA], and as part of the job I was involved with the risk management program. Then, when I entered into private practice and started doing defense work—which was basically insurance defense work—I was exposed to risk management in a different way.
Can you discuss the synergy between risk management and law? How did you feel about risk management and insurance as a part of your work as general counsel?I felt that they were really synergistic. My background as an attorney assisted me in the decision-making process for risk manage-ment. Simultaneously, the practices in risk management helped sustain my work on the legal side. Each field was supporting the other.
Can you explain that further? I think the two fields go hand in hand. As a risk manager, you look at how things can go wrong and how you prevent those things from going wrong. From a litigation perspec-tive, you take those lessons and use them to help solve a piece of the puzzle when talk-ing to a jury or talking to the judge about a
case. They inform each other and I think they work together. Of course, if you’re doing insurance defense work, then you’re really answering to risk managers and you’re also cognizant of what the insurance companies are expecting from a litigation perspective.
If you had to describe your philosophy on risk management, how would you frame it?My philosophy is that I have to know the risk, I have to examine the risk and I have to miti-gate the risk. Also, I know that I must have partners who buy into that philosophy and will assist me in doing those three things. Certainly, I want to have insurance for all of the risks, but I’m aware that it’s not possible to insure all of them. Risk managers generally see disasters in almost everything, and I think it’s our job to mitigate those disasters. Of course, we are aware that we can’t prevent all of them… When we have particular insurance companies as partners, we learn where those companies put empha-sis: what risks are insurable and what risks you have to accept and hope for the best.
What are the things you are really concerned about at Providence College?In 1977 we had a devastating fire at the college and I would say that still has an impact on many of the decisions made
arifrances McGinn is nothing if not versatile.From city solicitor and private practice to vice president, general counsel and risk manager for a major New England college, McGinn has worn a number of different hats. The key to being effective in such a wide-ranging role is to find and appreciate the places for syn-ergy in the many diverse areas she oversees. Providence College, her place of work, is a primarily undergraduate, liberal arts, indepen-dent, not-for-profit, Catholic institution of higher education.
MDOWNLOAD RiskEssentials from the App Store or Google Play to watch the Voices video with Marifrances McGinn.
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today. It informs my risk decisions; I never want anything like that to ever happen again. So one of the things we have done with FM Global’s assistance is to fully sprinkler the campus. I think FM Global has under-stood our philosophy about that from the very beginning. They actually became our insurance carrier in 1978, right after the fire.
So life safety is a major concern.Safety is probably the biggest informer for all of our decisions. Our physical plant people are aware of it. They’re very good at telling me if they see something that is a pos-sible risk. People are very aware of risk here. We have old buildings and new buildings, and with that combination come a number of risks. All of these are risks that we deal with on a regular basis.
What are some of the biggest challenges you’re currently facing? One of the biggest challenges we’re facing now is that we are in the ERM [enterprise risk management] process. First, people have to understand the process, then they have to buy into the process. That’s probably my number one priority right now.
What was the impetus for establishing an ERM function?Discussions with members of our board, our cabinet and insurance professionals all made us realize that this is the time we have to get into the process, develop it, imple-ment it and sustain it. We’re heading into our centennial anniversary in 2017. We want to make sure that we’re around for another 100 years.
How do you see the field of risk management evolving and changing? Are there some things you believe you need to get a handle on moving forward?The cost of insurance, particularly for an urban campus with mixed buildings as we have, is a huge part of our budget. We have to manage our insurance in a precise man-ner. We have to insure for all the risks we
can insure, but we have to make sure that we’re not over-insuring… We want to be realistic. It’s all a cooperative effort, to make sure that protecting the campus is not a burden to the students who will be com-ing to the campus in the next 100 years and have to pay tuition plus room and board.
Over the past few years, has PC invested a significant amount of money in loss pre-vention or invested money in resolving out-standing recommendations?FM Global gave us a recommendation about our roofs, and I have to say that we, at great cost, adopted that recommendation; and now we have 100-year roofs on all of our buildings. In the next couple of years, there are several buildings we will be reno-vating and we will be incorporating some of the initiatives that FM Global has shared with us. Changes are expensive but, in the long run, will mitigate cost.
What process do you go through to clear those funds? Because of the good work of our CFO, we’re able to budget for those processes; and also working collaboratively with FM Global, we were able to phase the insurance into the proj-ect to make it a more cost-effective decision.
Do you have any other projects like that on the horizon?We are planning to build a business school, and certainly FM Global will be involved in the project. We’re just at the embryo stage of that right now, but we believe we will be ren-ovating a building on lower campus—some retrofitting, some new construction—and creating a state-of-the-art business school.
On what will you expect FM Global to part-ner with you on the project?FM Global has partnered with us on many construction projects, whether they’ve been new construction or remodeling. We bring them in early on and they make suggestions, and they certainly are part of the team that meets with the architects and construction
companies. All of FM Global’s suggestions are weighed and balanced. We just want to make sure that we do the right thing.
What is your overall impression of the FM Global business model?I think we’ve been very receptive to it. Not only has it been a collaborative relationship, but a congenial one. In terms of the engi-neering, I can think of one project that we did in our library where FM Global made some suggestions that were so good that we immediately adopted them. We have a real give-and-take relationship… There’s respect there, and we always come to a consensus.
So you would say that FM Global has been relatively easy to do business with?Absolutely. It’s not that we don’t disagree; we have had disagreements. But often that goes back to the balancing act between the cost of education and the cost of enhancing the physical landscape of the campus and insuring its safety. We are mindful that what we want to do might be informed by what we can afford to do.
Have you had claims resolved here recently? Can you talk about them or one in particular?Yes. We own a valuable piece of property nearby, but the person who donated the property to us has a life tenancy on it. Last winter there was flooding, which resulted in significant damage at the site. There were some difficult coverage questions involved in settling the matter, including remedia-tion questions. FM Global worked with us in an extremely collaborative manner and we were able to come to a reasonable and suc-cessful resolution of that claim.
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VOICES
VOICES
ONE ON ONE with Ferdinard Crawford, security manager at MeadWestvaco
learn all the site-specific hazards that were present. Yes, municipal firefighters could put the fire out, but they do not have the in-depth knowledge about the site-specific hazards or the operational aspect of the plant. So we do not rely on outside people. Fire departments do not have the time to spend at our facility trying to learn all of our risk. It can take months and/or years to understand some of the needed resources to mitigate emergencies at our plant. So we have to do this ourselves. We are self-supportive and we take ownership of our plant. We do receive mutual aid from the surrounding cities and counties.
Do the internal emergency responders have a better understanding of the risks at your plant?When you think about it, who knows your facility best? Who knows the chemicals and hazards best? It’s the people who handle them every day. Having your own team is
Why use in-house emergency response teams?The real question would be, why not. We are in a rural area. We have a lot of snakes, deer and other little critters out there, but not a lot of people. We’re probably 25 – 30 min-utes away from a small city to the north; it would probably be a 25- to 30-minute ride to get to another smaller city to our south, and to the east you’d have to cross a river and ride another 30 minutes. So the closest help would be at least 30 minutes away. If something were to happen, we can’t afford that 30-minute time lapse.
Even though they are far away, aren’t munic-ipal firefighters better equipped to handle an emergency?I was a fireman with a municipal fire depart-ment for 12 years. I could put out a house fire; I was really good at it. But it’s a dif-ferent animal with industrial plants. In my time as a municipal fireman, I never had the opportunity to go inside a plant to really
F erdinard Crawford is the security manager at MeadWestvaco’s Mahrt Operations (the Mahrt mill and the Cottonton sawmill) in Cottonton, Alabama, USA, about 90 miles east of Montgomery. MeadWestvaco Corporation (MWV) is a leading global packaging company with more than US$5.4 billion in total sales in 2013. The company provides packaging for the food, beverage, beauty and personal care, health care, and home and garden markets around the world. MWV also provides specialty chemicals to the automotive, infrastructure and energy exploration industries. Powered by a network of 125 facilities and 15,000 employees worldwide, MWV operates in 30 countries. The Mahrt mill produces Coated Natural Kraft® paperboard for the company’s packaging operation. The complex has approximately 900 employees, working 24 hours a day, seven days a week. The plant and its people are protected by all-volunteer emergency response teams, made up entirely of employees. Their ERT teams are trained in emergency medical response, high angle rescue, confined space rescue, water rescue, firefighting and hazmat.
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VOICES
invaluable. We have different chemicals, boilers, tanks, confined spaces and other inherent risk. We also have ponds and we sit on the bank of a river. When you train your own people, you can get them train-ing on site-specific hazards. So our workers are the key to our successful loss prevention program. Since we have increased our ERT teams’ training, our losses have dropped. I can’t really put a number on it, but it’s a lot. Having our own teams has been a marriage made in heaven for us.
So the first responders are an important part of your loss prevention program?When you think about mitigating risks, there are a couple components. First of all, you want to do all the preventive mea-sures you possibly can. Where the emer-gency responders come in is considered the human element side. A highly trained ERT team and engineering really comple-ment each other. I think employees end up being more proactive toward loss preven-tion when given the proper training and tools. Employee buy-in is necessary and that’s something that takes a while, but it becomes a mind-set.
So loss prevention has become the mind-set at the Mahrt plant?Definitely. When you talk about loss prevention, it’s a partnership and it takes people from all levels. It takes the employ-ees to be receptive to assist with loss prevention and mitigating emergencies. It takes a team leader like myself who believes in it. It takes a plant manager who understands risk and is willing to act on it. The plant manager must have confidence in my abilities to understand what we need to do to protect the facility. It also takes the FM Global representative who comes to our facility and does the inspections. The FM Global field engineer has to work as a partner with us. Having a successful loss prevention program is not something one person can accomplish.
When you train your own people, you can get them training on site-specific hazards. So our workers are the key to our successful loss prevention program. Since we have in-
creased our ERT teams’ training, our losses have dropped.
Why did you select Emergency Response Consultants for your training?I looked at a lot of things when it came to training facilities. I looked at their ability to come to my site. I looked at the ability to get to their place. I looked at their safety record, because safety is number one when we train our people. This was one of the few places I found that could meet all my needs. All of the instructors are very capable; they have the ability to train on any given sub-ject. ERC was the only training center that could handle all of our training needs. ERC has always worked around our shutdown and outages schedules. We run 24/7 and needed a training center that was available at all
hours. We have had a long relationship with ERC [formerly TSB Loss Control]. The first industrial fire training class I attended was in 1996 or 1997 at our plant. Our people are trained just as well as anybody in the coun-try. We do 28 weeks of training a year, and I think that’s not enough.
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VOICES
FM Global Emergency Response Consultants offers hands-on emergency response training to all levels of fire brigades, hazardous material emergency responders, technical and confined-space rescue teams, emergency medical services and local fire departments. Training is tailored to your needs and the needs of each of your locations, and can be conducted at the FM Global Emergency Response Consultants Training Center, or on-site at your location.
Emergency Response Consultants
I N D U S T R I A L S T R E N G T H
G E R M A N Y F I R M E N G I N E E R S A
H I G H L Y R E S I L I E N T F A C I L I T Y
In one of those industrial parks is Spectro Analytical Instruments. Founded in 1979, Spectro was purchased in 2005 by AMETEK, Inc., a diversified global manu-facturing company. Today, Spectro employs more than 400 workers at its site, most of them highly skilled, and leads the market with its line of precision materials analyzers. Since its inception, Spectro has produced and delivered more than 30,000 instruments, from handheld spectrometers to fully auto-matic sample preparation and analysis sys-tems. All of the Spectro instruments incor-porate advanced precision technology. Manfred Bergsch is the company’s business manager. “AMETEK acquired us in 2005 and since then Spectro has done very well,” he says. “We have benefitted by being part of a large company and have leveraged AMETEK’s global reach and capabilities.”
L ocated just inside Germany’s border with the Netherlands and a short distance from the storied Rhine River, Kleve is a pleasant and quiet place in the country’s north-
west. The town itself—which claims the i l l-fated wife of Henry VII I, Anne of Cleves, as its most famous resident—is made up of concentric circles, with the middle occupied by its historic center, complete with an impressive castle, and the outer r ing boasting plenty of bustl ing industrial parks. Beyond those rings, the countryside turns green and cows populate the pasturelands.
ISSUE 4 : 2014 [ Reason ] 39
Rainier Petry, vice president of operations at Spectro and a 25-year veteran of the company, proudly introduces the finely tuned precision instruments produced at the site. “We specialize in devel-oping mobile instruments like you see here behind me,” he says, pointing to a laptop-type product, with a space-age appearance. “This instrument was made so that our customers can bring the laboratory to the material they want to analyze, not the other way around.” “The Kleve facility is a key location for AMETEK, so we wanted to make sure we had sufficient business continuity planning in place, as well as adequate risk protection,” says Mark Pave, direc-tor, corporate treasury for AMETEK. Spectro plays a major role in AMETEK’s business plans. “Stra-tegically it is an important business from a technology and product standpoint,” says Bob Mandos, AMETEK’s chief financial officer. “From an enterprise risk management standpoint, we look at the rela-tive profitability of our businesses, particularly when the business’s primary manufacturing is at one site. In the case of Spectro the profit-ability largely resides in that single location.” They also put in place a business continuity plan. Unfortu-nately, data confirmed that the fastest Spectro could feasibly recover from a disaster was three months. In that time, they’d lose market share, not to mention customer confidence, in what is a competi-tive marketplace. “When our customers make decisions to buy such
instruments,” says Petry, “they want to have the instrument immediately. You cannot tell them that they will have it in 12 weeks.” What Mandos, Pave and AMETEK executives determined was that the biggest risk facing Spectro was insufficient fire pro-tection. “We didn’t think it was practical to devote the resources necessary to create a backup site,” says Pave, “so we focused on protecting the assets through a fire-suppres-sion system.” That’s when AMETEK and Spec-tro brought in the engineering team at FM Global to begin deeper discussions about sprinklering the facility.
TALKING ABOUT SPRINKLERS IN GERMANYThe Kleve project dates back nearly a decade, to the time when AMETEK first acquired Spectro. Its first engineering review with FM Global identified an opportunity to improve loss prevention there, primarily
“We are a high-tech company, and we have three different cleanrooms where we can’t have any dust. And to install a
sprinkler system here, well, it’s not easy without creating dust. We certainly couldn’t stop production.”
RAINER PETRY vice president of operations
Spectro
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the sprinkler protection program. “Acqui-sitions are an integral part of AMETEK’s growth strategy,” says Pave. “We realized that we needed to strategize better how we were growing and what resources we needed to employ in key locations. We obviously needed to minimize our risk and exposure, not just for AMETEK, but also for our share-holders, in the event of a catastrophe.” But retrofitting a sprinkler system at a facility in Germany isn’t simply business as usual. Bergsch acknowledges the cultural disconnect between German industry and sprinkler protection. “I think that fire protec-tion here is not as developed as it is in other countries, at least from the production point of view. Everybody knows these protection systems are in hotels and areas like that where a lot of people congregate. But not that many sprinklers are used in production areas. In Germany, we take care in the production areas not to have too many flammable products around. Plus, you make sure the fire brigade is well informed and well trained.”
In Kleve, as in other small cities in Germany, there’s a volunteer fire brigade, and in this case many of those volunteers comprise Spectro employees, so they certainly know their way around the site. On the other hand, it’s not completely certain that in the event something happens, people will be on hand—nights and weekends, for example—to address the situa-tion. As with anything unpredictable, nothing is easy. Still, Spectro executives and manage-ment needed further convincing on the benefits of sprinklering. “At the very beginning of the discussions,” says Bergsch, “we were not 100-percent con-vinced that a sprinkler system was really needed. On the other hand, profit protection needed to be in place.” Another turning point in the debate came when engineers explained to Spectro per-sonnel that the new fire protection systems were not at all like the old fire protection sys-tems. Michael Both, an FM Global field engineer, was one of those people. “All of the loss prevention concepts—like control of hot work, handling smoking areas, storing flammable liquid—were already at a high level at Spectro. But they didn’t know that sprinklers, which they had rejected consistently since we first visited a number of years ago, had become much more refined. It should also be noted that they were not legally required to install a sprinkler system at all.”
“Lots of people still have the impression that, now that we have sprinkler equipment, if I open a sprinkler at one location, the
whole site will be affected. We needed to take that out of people’s heads and explain that no, it will only affect the zone that I previously pointed out and where the
head of the sprinkler is located.”
WOLFGANG LINGNER manager, parts and logistics
Spectro
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OTHER CHALLENGESThe first challenge was that the sprinkler installation, should it take place, would be a retrofit. This meant that dealing with the existing construction was the only option. The second challenge was that the production process could not be inter-rupted, for obvious reasons. The third challenge, and arguably the biggest one, was that there were three cleanrooms on-site included in the sprinkler plan. “You cannot just open a cleanroom, install some sprinklers, and close it again and still have a ‘clean’ room,” says Both. “So there were very intense discussions among FM Global, the sprinkler contractor and the employees on-site from vari-ous departments to find solutions to get the sprinkler system installed, even in the cleanrooms.” All of this resulted in a substantial price tag. Despite that, Spectro and AMETEK decided it was in the company and shareholders’ best interest to move forward. “The investment we made in Kleve around the sprinkler system was by far one of our larger investments, as it relates to risk mitigation,” says Pave. “We looked at how much the system would cost and how we could do it in a way that was cost-efficient for us and completed over an extended period of time.” Mark Scheuer, director, compliance, agrees. “The sprinkler project in Kleve was not cheap. To justify the project, we took a look, with the help of FM Global’s engineering and account service group, at the value of the prop-erty and, more importantly, the business interruption cost to that facility to see how that would impact AMETEK. The impact on us for not completing this recommendation in the event of a catastrophic failure or fire at this facil-
“ The impact on us for not completing this recommendation in the event there was a catastrophic failure or fire at this facility would greatly outweigh the cost of the installa-tion. The overall impact on AMETEK shareholder value was a critical factor that helped sell this project.”
MARK SCHEUER director, compliance AMETEK
“The investment we made in Kleve around the sprinkler system was by far one of our larger investments as it relates to risk mitigation. We looked at how much the system would cost and how we could do it in a way that was cost-efficient
for us and completed over an extended period of time.”
MARK PAVE director, corporate treasury
AMETEK
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ity would greatly outweigh the cost of the installation. The overall impact on AME-TEK shareholder value was a critical factor that helped sell this project.” As part of its fiscal analysis, AMETEK looked at each aspect of its risk mitigation strategy to make certain it was investing in the right project at the right time. This is a complicated endeavor, considering AMETEK has more than 120 manufacturing locations around the world and a decentralized cor-porate structure, with a 50/50 revenue split between domestic and international sales. “We have a lot of touch points throughout the world,” says Pave. “We have so many differ-ent locations, with no single location account-ing for a significant portion of our revenue. It becomes a really collaborative effort to make contact with all of those locations.”
THE ONE-YEAR PROJECTAMETEK and Spectro management figured that it was easier, both financially and logis-
tically, to break the project into two phases. That translated into some engineering work up front, and morphed into some site capital the first year. Phase two would be the com-pletion of the project. Rainier Petry knows another reason why the project took some time. “We are a high-tech company, and we have three dif-ferent cleanrooms where we can’t have any dust,” he says. “And to install a sprinkler sys-tem here, well, it’s not easy without creating dust. We certainly couldn’t stop production.” In fact, Spectro didn’t allow the installation to take place during working hours. Employ-ees work from seven in the morning to four in the afternoon. After that, sprinkler work could commence. Wolfgang Lingner managed the logistics of the sprinkler installation with FM Global engineers and created the defini-tive manual to accompany the installation. Part of his job was to explain to skeptical employees why a sprinkler system was even necessary.
Below: FM Global engineers meet with Spectro’s
Wolfgang Lingner (left) and Rainer Petry (second from
right) to discuss risk improvements.
ISSUE 4 : 2014 [ Reason ] 43
“I created a manual that covers the entire sprinkler system, the motor and all its attachments” he says, “and we issued the manual companywide. We track weekly, monthly, quarterly and yearly maintenance, and we record all of the information we get from that maintenance. We’ve worked hard, going into the smallest details to describe everything, as we feel that the whole equipment is dependent on its parts. Lots of people still have the impression that, now that we have sprinkler equipment, if I open a sprinkler at one location, the whole site will be affected. We needed to take that out of people’s heads and explain that no, it will only affect the zone that I previously pointed out and where the head of the sprinkler resides.”
IN CONCLUSION“The way we look at the investment in Kleve is the way we look at investments in other units of our company,” says Mandos. “We have to fund growth, while fund-ing our risk management approach at the same time. We look at facilities around the globe, understand if they have the same attributes as the Kleve facility, and comprehend what kind of investment we need to make in a similar sprinkler system. Certainly, if we believe there is a risk we wouldn’t want to put on a given business, we’ll make the investment.” AMETEK has grown from less than US$1 billion in sales in 1998 to more than US$4 billion today. Its manufacturing footprint has increased from under 40 facilities to more than 120. Managing growth is key for the company. “Our rela-tionship with FM Global has helped us capitalize on this growth,” says Pave. “It is a key partnership for us, from the onset of an acquisition to post-acquisition, where
“The way we look at the investment in Kleve is the way we look at the investments in other units of our company. We
have to fund growth, while funding our risk management approach at the same time.”
BOB MANDOS chief financial officer
AMETEK
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What is AMETEK’s risk management philosophy?Generally speaking, we are a conservative company and that dictates how I approach my work. AMETEK takes a very disciplined and cautious approach to risk.
How does that change the way you do your job?AMETEK is very calculated in its approach to risk mitiga-tion and avoidance. That approach makes me take a deeper dive into certain areas and scenarios that might otherwise go unnoticed. I focus on looking for the narrow deep holes that could create a significant liability to the company. So, I ask myself, “What can sink us? Where’s the potential black swan event?” Once I uncover or am faced with those poten-tial risks, I then dig even deeper to sweep out the corners in order to identify any other issues that may be connected to or are somehow wrapped around that exposure.
What role does FM Global play in helping you do that kind of digging?FM Global is boots on the ground for us. We have a cor-porate compliance department that aggressively takes on, among other things, loss control; but, it’s the FM Global engineers, analyzing our potential exposures with a mag-nifying glass, that are really beneficial to us.
Over the years, AMETEK has been a very active acquirer. How have these acquisitions affected your job?I have to get my arms around any new acquisition at the onset. With more than 50 business units and more than 120 manufacturing locations worldwide brought under AMETEK by either acquisition or organic expansion, and with each business unit running principally autonomously,
I have to ensure that I understand thoroughly the risk expo-sures around any new business unit. Also, it is crucial that I am brought into the loop on any new product or structural change involving that entity, so consistent communication with the business unit and our legal group is critical. Prior to acquiring a company I look for the same deep holes, but now I’m looking at a company that I basically know nothing about, which makes the job a bit tougher. However, each acquisition is handled by an experienced and disciplined due diligence team, whose members are well-versed in their areas of expertise. They understand my concerns around risk and provide me with information they uncover during their review that could impact our risk exposure. We combine that effort with our risk subcommit-tee that acts like a small enterprise risk management group in reviewing all risks associated with an acquisition. This makes my job a little easier, especially once the acquired company has been integrated into the company.
That sounds like a lot to oversee. There are two pieces to my job: company acquisitions and the overall day-to-day operations of the company. It can be complicated because we have such a broad spectrum of exposures in our product portfolio. We serve an array of unrelated markets that range from aerospace to medi-cal and automation to energy. Each has its own distinct risk- and insurance-related issues, and some have federal guidelines and regulations that I must also take into con-sideration. As such, there is a lot to review to ensure our insurance contracts are written properly, and that the busi-ness units understand their risk exposure and have taken
A N I N T E R V I E W W I T H J AY P E R R YC O R P O R AT E R I S K M A N A G E R , A M E T E K
S W E E P I N G O U T T H E C O R N E R S
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Have you had a loss recently? We did have a small one, yes. A sprinkler head broke caus-ing water damage to a million-dollar piece of equipment called a “sputter.” FM Global adjusted the claim very quickly and smoothly. Its response was, “What can we do for you?” When an insurance partner has that attitude, it always makes the whole process easy.
How do you envision your role as risk manager changing over time?I think the whole concept around enterprise risk management has principally changed the way we do our job as well as how the risk manager’s job is viewed by companies. The risk manager as the company’s insurance person is becoming less and less important in today’s corporate environment. The risk manager is now viewed as more of a “risk strategist” who is expected to understand multilayered risk exposures within the overall company, as well as externally, and required to uncover those issues that may impact the company’s overall liability. Once exposures are recognized, the tools and designs that are used today to manage those risks go well beyond insurance.
So, the risk manager today needs to be in tune with, and clearly understand, indus-tries served, current events, insurance, law, finance, human resources, supply chain exposures, etc., as well as how it all intertwines within their company.
What part of that excites you most? I’m a bit of an insurance nerd, so what I enjoy the most is negotiating third-party contracts and developing manuscript
insurance coverage. I like to see how it all works at time of loss. I am fortunate to have a role not only in negotiating third-party agreements and our insurance language, but also manag-ing claims, so I can see very clearly how and what works. The worst time to find the gaps or mistakes, though, is at time of loss; so if you don’t know how the policies work, you could be in trouble!
What do you think is the best part of working together with FM Global?Its strength is in its response. When I have a question or a problem, I can’t seem to stump them. I draw up some crazy scenarios, because that’s the way we do it here, and FM Global always provides clear and acceptable answers.
appropriate measures under the guidance of risk manage-ment to manage such risks.
Do brokers help with the servicing aspect of it?Brokers are a big part of our insurance business, espe-cially on the international side. Local brokers are essential because they act as an extension of our risk management department. They meet face to face with our local facilities and business units and develop working relationships with them. This generally comes easy because they are of the same culture and speak the same language. It is easier for me with an in-country broker, and it helps me more effec-tively manage the local relationship. For instance, there is a different dynamic if you’re in China helping on-site than if you’re coming in from outside the country. I expect our broker to have an expertise in local insurance markets and, most importantly, an understanding of local insurance requirements and laws. I also look to use a single broker internationally, so as to ensure our insurance coverage does not gap or overlap. This helps assure us that policies are properly scheduled under our excess program.
“ I look to use a single broker internationally, so as to ensure our insurance coverage does not gap or overlap. This helps assure us that policies are properly scheduled under our excess program.”
For U.S. brokers, I look for their insurance expertise in different industrial arenas. I’m not an expert in every indus-try, and, with our involvement in so many different areas, I look to broker expertise to help me deal with what I don’t know.
How would you explain the idea of a “conservative risk manager”?One who is not a trailblazer, one who understands what the company can financially absorb relating to a loss, while at the same time keeping risk transfer and that absorption rate at equilibrium. Another balance is preventing the com-pany from becoming insurance poor.
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we can utilize its engineering services to help us better understand all of our risks even before we enter into discussions with a facility. I think as we’ve grown, I can safely say that the relationship with FM Global has grown as well.” All of the discussions, the strategy and the planning have certainly worked in Kleve, where Spectro has a highly protected facility to call its own. Michael Both, who more than any other FM Global representative was on-site during the instal-lation, is proud of Spectro’s accomplishment. “There is not an area in this building and the associated buildings that is unprotected. Whenever, wherever something might happen, despite what the ignition source might be, there is overall sprinkler protection. So what we really know, what we believe and trust in, is that even if something were to happen on-site, the sprinkler system would operate, and one, two, maybe three sprinkler heads will be needed to control the fire. We’d still need the fire department; it would come and do its job. But we’re pretty sure the next day the site goes back into production with no impact to Spectro’s customers.”
DOWNLOAD RiskEssentials from the App Store or Google Play to watch the “Working Together” video that accompanies this story.
“We were not 100-percent convinced that a sprinkler system was really needed. On the other hand, profit
protection needed to be in place.”
MANFRED BERGSCH business manager
Spectro
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Sometimes things can go wrong.
In the event they do, properly trained first responders can
provide the most effective response.
IN CASE OF
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WHAT IS THE DIFFERENCE BETWEEN A MINOR INCIDENT AND A MAJOR DISASTER?For many companies, that answer could be “first responders.” But often, those first responders are simply too far away to provide the quick response needed to keep minor incidents in check. Those faced with protecting remote multimillion-dollar operations often turn to their own people to protect themselves and their facility. Through a wholly owned subsidiary, FM Global is helping such clients reduce risk by effectively training in-house emergency responders. FM Global Emergency Response Consultants (ERC) provides all levels of emergency response training, enabling companies to build their own internal emergency teams to deal with the specific risks at any facility. For industries like mining, chemical production and forest products, these teams are often the only first responders close enough to make a difference. “A lot of our locations are very remote,” says Brent Hyman, president, PCS Phosphate and PCS Nitrogen at PotashCorp, the world’s largest fertilizer company with remote mining and production facilities in seven countries. “We don’t always have access to a well-trained local fire department or emergency responders. There-fore, we have to have our own good teams ready and on-site at all times.” Many companies like PotashCorp utilize in-house emergency responders, often called fire brigades, to mitigate the risk of being too far away from municipal fire services and to support effective fire protection engineering practices. The emer-gency responders are made up of employees, who train as firefighters, emergency medical technicians or hazardous material emergency responders, in addition to their regular jobs.
ISSUE 4 : 2014 [ Reason ] 51
“Our main focus is on prevention, and we have a lot of really good systems and pro-cesses in place to make sure things don’t happen,” said Mark Fracchia, vice president of safety, health and environment for PotashCorp. “At the same time, we recognize that some-times things can go wrong. When that happens, we need to have people who are trained in emergency response who can provide that effective response and preserve life and property. So the on-site first responders are an integral part of our overall safety strategy through all of our facilities.” These in-house emergency responders are an important piece of the overall loss preven-tion puzzle. That’s why FM Global is putting a renewed emphasis on its emergency response training facility, which has been part of the FM Global family since 1997. FM Global encour-ages its clients to meet with local fire officials to ensure they are equipped to handle specific risks at the various locations. When those municipal services aren’t readily available, clients can turn to ERC. “An effectively trained emergency response team really understands the hazard that they’re dealing with and they’re able to make effective decisions to reduce the size and the magnitude of the event,” says Jim Bevins, general manager of ERC. “So an incident does not become a multimillion-dollar loss, it’s merely a distraction. It fits quite nicely at FM Global because, at the end of the day, we all want to reduce loss.” Because they are on-site, these teams can provide an immediate response to just about any incident. In the case of fire or a hazardous chemical spill, an on-site emergency response team can react to an incident before it becomes a threat to the entire facility, and more quickly than the local fire department.
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“My recommendation at an industrial site would be to have an emergency response team on scene every hour that that plant is in operation,” said Scott Slay, Fulton County (Georgia, USA) Fire Department battalion chief and ERC trainer. “You’re going to stop incidents early, you’re going to save lives and you’re going to save that facility if an inci-dent happens.” Slay says these teams offer a level of protection that local fire departments can’t provide even if they are nearby. He said local fire departments, even those in Fulton County, which includes the city of Atlanta, deal mostly with residential fires and have little experience with industrial fires. He said it is hard for fire departments to train for industrial fires because each facility is so different. While most fire departments inspect the industrial sites in their area at least annually, it is impossible for the municipal fire department to have the knowledge needed to aggressively fight an industrial fire. If called to an industrial fire, the priorities are, understandably, life safety and containment. Fire brigades are intimately familiar with the facility and typically receive training spe-cific to that complex. Because they are in the building every day, they know the hallways, they know the hidden compartments and they know what chemicals are stored, how and where. And most importantly, they are on-site. “Typically, I would expect, if we were called to an industrial site that had a fire brigade, that the incident would be over before the fire department got there,” Slay said. “And if it did escalate, the fire brigade would be able to give the fire department all the information it would need to fight that fire.” ERC has been training emergency personnel since 1971. It is used by local departments in Georgia and nearby Alabama and has been used by special hazard units from around the world.
With FM Global Emergency Response Consultants, specialized training is tailored to client needs and can be conducted either at the 328-acre (133-hectare) FM Global Emergency Response Consultants Training Center in Rome, Ga., or on-site at client locations.
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At its 328-acre (133-hectare) facility in Georgia, ERC offers hands-on emergency response training to all levels of fire brigades. Some brigades are trained in the use of fire extinguishers and small hose stations. Called incipient brigades, they are trained to handle a fire at the incipient, or beginning, stage. Other brigades obtain the skills of full-fledged firefighters, able to fight interior structural fires and con-duct building search and rescue using firefighter personal protective equipment to include clothing and self-contained breathing apparatus. “This training at this facility has been invaluable to us,” said Ferdinard Crawford, security manager at a rural MeadWestvaco paper mill in nearby Alabama. “This was one of the few places I found that could meet all my needs. As far as training, I feel that our people are trained as well as anybody.”
ERC can design training to the specific needs of the client and offers training at the client’s industrial site. Training can be tai-lored to the particular hazards of a site (spe-cific chemicals or other dangerous materials) and to the specific emergency skills needed at that facility. “I think this training facility really sets up well to service our high-challenge industries,” said Scott Anderson, division engineering manager for FM Global, “not only chemical and mining industries but power generation, pulp and paper. In those high-challenge occupancies it takes people doing the right actions in the event of a loss to minimize that exposure.” The Georgia facility is equipped to train emergency personnel for most situations and can dress more than 150 emergency responders in full protective gear. Training
is offered on interior structural fires, the use of personal protective equipment and self-contained breath-ing apparatus, as well as technical, confined-space and water rescue, and emergency medical training. “This facility stands head and shoulders above any other facility out there,” said Dennis Killebrew, safety specialist with PotashCorp in White Springs, Florida. PotashCorp has been using the facility since 2006, not only to train their teams from around the world, but to hold their annual emergency response competition. The PotashCorp emergency response teams are a valuable resource that not only helps to protect PotashCorp facilities, but also the local community. PotashCorp teams have been called upon to assist after the devastating tornado in Joplin, Missouri, and recent flooding in Aurora, North Carolina. “Our team from Joplin, along with our teams from some of the other Midwest plants, responded to the disaster,” Hyman explained. “They actually took a very lead role in some of the search and rescue efforts. In Aurora we used some of our boats and other equipment to rescue stranded homeowners.”
“ We recognize that sometimes things can go wrong. When that happens, we need to have people who are trained in emergency response who can provide that effective response and preserve life and property. So the on-site first responders are an integral part of our overall safety strategy through all of our facilities.”
Mark FracchiaVICE PRESIDENT OF SAFETY, HEALTH AND ENVIRONMENT
POTASHCORP
DOWNLOAD RiskEssentials from the App Store or Google Play to watch a video about FM Global Emergency Response Consultants.
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ERC offers hands-on emergency response training to all levels of fire brigades, hazardous material emergency responders, technical and confined-space rescue teams, emergency medical services and local fire departments.
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Find this exclusive video coverage on our magazine website!
Voices: Marifrances McGinnThe Providence College general counsel and risk manager discusses the synergy between insurance and law.
Cleanrooms With three cleanrooms at its Kleve, Germany, site, Spectro provided the perfect backdrop for a new capabilities video.
Emergency Response ConsultantsWitness up close the added value ERC provides, with its unique, hands-on emergency response training.
Smoke Damage in Data CentersNew research shows how smoke transport is a critical factor in protecting data centers. Watch the video that proves it.
Working Together with AMETEK/SpectroWatch how one Germany-based client solved its risk improvement issue by retrofitting a sprinkler system in a complex industrial environment.
FIND this video coverage on our magazine website, fmglobal.com/reason.
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At FM Global, it’s our policy to keep you in business.
WATCH the video about our policy on the website, fmglobal.com/reason.
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