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150 years Surprise – We had an incident Hans V. Schwarz, BASF Dordrecht, May 17, 2017

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Page 1: Surprise We had an incident - PScongrespscongres.nl/.../05/01-Hans-Schwarz-BASF-Surprise-we-had-an-incid… · Process Safety 150 years Incidents despite the organized approach 5

150 years

Surprise –

We had an incident

Hans V. Schwarz, BASF

Dordrecht, May 17, 2017

Page 2: Surprise We had an incident - PScongrespscongres.nl/.../05/01-Hans-Schwarz-BASF-Surprise-we-had-an-incid… · Process Safety 150 years Incidents despite the organized approach 5

150 years

Process Safety Incidents

Process Safety

BP 2005 (Texas City, USA) Bayer 2008 (Institute, WV, USA)

Evonik 2012 (Marl) Nippon Shokubai 2012 (Japan)

2

Page 3: Surprise We had an incident - PScongrespscongres.nl/.../05/01-Hans-Schwarz-BASF-Surprise-we-had-an-incid… · Process Safety 150 years Incidents despite the organized approach 5

150 yearsProcess Safety

Oct. 2016 incident in Ludwigshafen

Our worst incident in decades

3

Cut in the wrong pipeline with ignition puts neighboring pipelineunder fire, subsequent explosion, with 4 fatalities, 7 severely injured

Ongoing investigation of state attorney

Before the incident After the incident

Page 4: Surprise We had an incident - PScongrespscongres.nl/.../05/01-Hans-Schwarz-BASF-Surprise-we-had-an-incid… · Process Safety 150 years Incidents despite the organized approach 5

150 yearsProcess Safety

Severity weighted PSI Rate, Cause distribution:

The trends before the severe incident

4

0

1

2

3

4

5

6

7

8

12 13 14 15 16

Ludwigshafen

PSI Severity Points per 1 mio working hours

Severity points / Year, div. by BASF manhrs/Yr.

Each incident gets 1, 3, 9 or 27 severity points

H1/2016

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

SE 2011 SE 2013 SE 2015

PSI Root Cause CategoryDistribution BASF SE

Operational Integrity

Asset Integrity

Design Integrity

Others or without Root Cause Evaluation

H1/2016

2011 2012 2013 2014 2015 2016

Page 5: Surprise We had an incident - PScongrespscongres.nl/.../05/01-Hans-Schwarz-BASF-Surprise-we-had-an-incid… · Process Safety 150 years Incidents despite the organized approach 5

150 yearsProcess Safety

Incidents despite the organized approach

5

A good approach makes a very big difference vs a mediocre approach:

Major western companies with well developped safety management

systems have much less incidents than companies in the developping

world

Asian companies have already benefitted a lot from improving safety

management

Our methods generally work very well, and the result is a function of the

input

The learnings we still make are significant. There is no reason that we

cannot cut incident rates further to a fraction of today, even without

overwhelming costs

The focus is shifting to the work processes in maintenance and plant

operation

Page 6: Surprise We had an incident - PScongrespscongres.nl/.../05/01-Hans-Schwarz-BASF-Surprise-we-had-an-incid… · Process Safety 150 years Incidents despite the organized approach 5

150 years

6

Process Safety

Incidents despite the organized approach

Page 7: Surprise We had an incident - PScongrespscongres.nl/.../05/01-Hans-Schwarz-BASF-Surprise-we-had-an-incid… · Process Safety 150 years Incidents despite the organized approach 5

150 years

7

Process Safety

KPIs don’t capture infrequent causesS

eve

rity

(Co

nse

qu

ence

)

Frequency

of causeshigh

high

low

That‘s where we learn

from KPIs

• Learning from individual

incidents across the industry.

• Sensitivity to ‚weak signals‘

Nasty ‚surprises‘

too seldom to measure;

Sufficient number of

incidents to evaluate

statistically

Page 8: Surprise We had an incident - PScongrespscongres.nl/.../05/01-Hans-Schwarz-BASF-Surprise-we-had-an-incid… · Process Safety 150 years Incidents despite the organized approach 5

150 years

8

Process Safety

Severe Incidents often have simple causes S

eve

rity

(Co

nse

qu

ence

)

Complexity Difficult to avoid

high

low

Work permits, procedures,

Discipline

Easy to avoid

HAZOPs,

Competence

Remaining risk

with good Safety

Management

Page 9: Surprise We had an incident - PScongrespscongres.nl/.../05/01-Hans-Schwarz-BASF-Surprise-we-had-an-incid… · Process Safety 150 years Incidents despite the organized approach 5

150 years

Holistic approach to the control of hazards

Process Safety

Construction towards Specification

Maintenance and Inspection

Safe

Operation

Development / Engineering: Safe Design

Risk comes from technical, organisational, personal factors.

Incidents originate from weaknesses in any of these stages !

Page 10: Surprise We had an incident - PScongrespscongres.nl/.../05/01-Hans-Schwarz-BASF-Surprise-we-had-an-incid… · Process Safety 150 years Incidents despite the organized approach 5

150 yearsProcess Safety

Avoiding nasty surprises requires structures

to deal with and respond to the unexpected

10

From historical incidents (Texas City, ….) and own experience we know that we need to

Strife for a culture, where

Hazards are understood and transparent

Information on negative impacts on safety flows freely from bottom to top.

Information on crtical issues is not filtered out.

Top management is in touch with reality of the plants

Incidents and weak signals are reported, weak signals are acted upon

Errors, mistakes can be reported and discussed without fear

Responsability is clearly assigned and involves all levels

Have good systems for Competence development, Maintenance, risk assessment,..

‚Practises‘ are at least as important as ‚mindset‘

Focus on High Reliability of work processes in Operations, Maintenance.

Deviations not accepted as ‚normal‘

Page 11: Surprise We had an incident - PScongrespscongres.nl/.../05/01-Hans-Schwarz-BASF-Surprise-we-had-an-incid… · Process Safety 150 years Incidents despite the organized approach 5

150 years