Isrs7 PSM Brochure Rev 7_tcm155-273420

isrs7 PSMfor the health of your business

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isrs7 PSM: improving process safety,environmental and businessperformanceTo meet the increasing expectations of multiple stakeholders, you need to continuallyimprove and demonstrate the health of your business. isrs7 PSM is a system to help youmanage major accident risks, achieve operational efficiency, provide assurance ofmanagement control and create confidence among stakeholders.

Built on isrs7: a world leading systemisrs7 is a world leading system for measuring, improvingand demonstrating safety, environmental and businessperformance. isrs7 helps you manage your risks. It assuresand improves the health of your business processes,provides management with advanced decision supportand builds reputation. It also drives business results andhelps you establish competitive advantage.

isrs7 has been developed as a Joint Industry Projectbetween DNV and partners from the Nuclear, Chemicaland Petrochemicals industries worldwide. It is based onthe long established International Safety Rating System(ISRS), which over 30 years has been used by thousandsof sites across the world.

isrs7 PSM: additional focusIn developing the Process Safety Management (PSM)version of isrs7, DNV has refocused the tool to considerthe specific controls needed for managing processrelated events. This was based upon the currentlyevolving best practice and incorporates learning’s from arange of authoritative sources.

isrs7 PSM includes the requirements andlearnings from: • OSHA 1910.119 – Process Safety Management• Seveso II Directive – 96/82/EC • MES 2 – Metatechnical Evaluation System

• Baker and CSB Reports into Texas City• CPL 03-00-004 – Petroleum Refinery Process Safety

Management National Emphasis Program• UK Offshore Safety Case Regulations• ISO 9001:2000 - Quality Management • ISO 14001:2004 - Environmental Management • OHSAS 18001:1999 - Health and Safety

Management • PAS 55:2004 - Asset Management• Global Reporting Initiative 2002 - Corporate Social

Responsibility

BenefitsDNV’s isrs7 PSM helps you achieve:• systematic and effective control of process risks • advanced management decision support • improved process safety, environmental and

business performance • the ability to meet and exceed regulatory

requirements • optimised work processes using industry best

practice • quantified goal setting • internal and external benchmarking • evaluation of the condition of plant and equipment• improved behaviour and commitment of

personnel• continual improvement through a single integrated

management system.

Cover picture © OMV Aktiengesellschaft

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isrs7 is a world leading system formeasuring, improving and demonstratingsafety, environmental and businessperformance. isrs7 helps you manage yourrisks. It provides management withadvanced decision support. It assures andimproves the health of your businessprocesses. It builds reputation. It drivesbusiness results.

isrs7 PSM brings these attributes into aprocess industry setting by focusing on thekey performance areas required to safelyoperate a successful business in the majorhazards industry. The existing isrs7

questions remain intact and are enhancedby additional PSM specific questions andguidance.

Photo © GlaxoSmithKline

PSM Omega Processesisrs7 PSM adopts a structure based on 15 processes,embedded in a continual improvement loop which iscommon to leading integrated management systems.The PSM Omega processes are designed to manage riskand drive continuous improvement.

1. Leadership

2. Planning and Administration3. Risk Evaluation4. Human Resources5. Compliance Assurance6. Project Management

7. Training and Competence8. Communication and Promotion9. Risk Control10.Asset Management11.Contractor Management and

Purchasing12.Emergency Preparedness

13.Learning from Events14.Risk Monitoring

15.Results and Review

PSM Omega AssessmentThe effective implementation of PSM depends on theimplementation of a robust management system .ThePSM Omega Assessment is a comprehensive evaluationof your management processes against best practice.

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A structured approach

Strategy

Plan

Implement

Monitor

Review

It involves a thorough assessment of all 15 processesand typically takes one to two weeks depending onthe size of the site. The assessment includesinterviews with management process owners wherequestions are answered and scored. Detailedverification is conducted and organisations must beprepared to offer evidence to support their answers.

The Physical Conditions AssessmentA key feature of the PSM Omega Assessment is thePhysical Conditions Assessment which assesses theeffectiveness of your PSM system in the workplace.The Physical Conditions Assessment looks in detail atthe technical condition and operability of risk controlequipment on site. It assesses the awareness andunderstanding of front line managers and workforcewith regard to risk control barriers and PSM.Regulatory compliance can also be reviewed throughthe Physical Conditions Assessment.

Scoring and ResultsThe results from interviews, document checks, andthe Physical Conditions Assessment are combined todetermine an overall level of PSM Omegaperformance between one and ten. The resultsprovide you with a detailed measure of performanceand a gap analysis against your desired level ofperformance. This becomes the planning basis forimprovement during the next period.

The following section provides a brief overview of theisrs7 PSM Management processes.

isrs7 PSM ManagementProcesses

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1. LeadershipGood leadership is essential for the effective operation ofany organisation. Good leadership begins with definingthe organisation’s expectations (purpose, vision, values,goals and policies), aligning these with the expectationsof other stakeholders and developing a strategy forachieving these expectations. Leaders are responsible fordefining the core business of the organisation andidentifying the major business risks. Leaders must alsodemonstrate commitment to improvement throughpractical leadership by “walking the talk”. This isparticularly emphasised in terms of the focus on PSMwithin the leadership, and the encouragement of asuitable PSM culture within the organisation.

The Leadership process tests the business purpose, vision,values, goals and policies of your organisation. Itexamines strategy and the actions of executives todemonstrate their commitment to PSM. It reviewsstakeholder engagement, and the clarity andcommunication of accountabilities and businessprocesses. It also highlights business risks andimprovement opportunities. The PSM version includesadditional activities related to Process Safety Leadershipand Process Safety Culture.

2. Planning and AdministrationEffective planning and follow-up ensures that businessgoals are achieved on time to the desired quality and onbudget. Strategic plans and shorter term business plansdetail the individual responsibilities and resources todeliver leadership expectations. Efficient documentationand record systems help ensure excellent businessprocesses and capture organisational knowledge.

The Planning process tests business planning, workplanning and the effectiveness of action tracking. It alsotests the robustness of the management systemdocumentation and the effectiveness of the recordmanagement system.

3. Risk EvaluationThe first duty of managers is to effectively manage risk.Risk management begins with the identification andevaluation of health, safety, environmental and processsafety related risks. Employees must have a goodawareness of risk at all times. A team approach to processand task risk evaluation will drive a strong risk culture inthe organisation.

The Risk Evaluation process reviews the identificationprocess for health, safety and environmental hazards. Itfocuses on the application of effective Process HazardAnalysis techniques supported by well maintained ProcessSafety Information to inform decision making andresource allocation. It also reviews the system to identifyand evaluate customer expectations as well as theidentification and control of management systemexposures.

4. Human ResourcesPeople and the knowledge they possess are the mostimportant assets in many organisations. Good HumanResource systems ensure these assets are managedeffectively from recruitment through to leaving theorganisation. Systems for recognition, discipline andregular performance reviews guide the development ofindividuals. Organisational change is a constant in themodern workplace which should be controlled with aneffective change management process.

The Human Resources process tests the robustness of theHR system including recruitment, individual performance,recognition and discipline. It also considers howorganisational change is managed.

5. Compliance AssuranceSociety expects ever higher standards of health, safetyand environmental performance, which is reflected ina growing body of regulations that must be compliedwith. Every organisation needs a system to identifyrelevant regulations, codes and standards, and assesstheir impact on the business. Societal expectationsalso demand high standards of stewardshipthroughout the product lifecycle from design todisposal.

The Compliance Assurance process tests theidentification and use of regulations, externalauthorisations to operate, codes and standards. Itreviews the reporting system to authorities as well asthe system to ensure compliance with chosenrequirements. It also reviews the robustness of theproduct stewardship systems.

6. Project ManagementProjects are unique activities with a beginning and anend. Their unique character introduces risks into theworkplace and requires careful planning to ensurerisks are controlled and that projects are completedon time, on budget and to the desired quality. Formalaccountabilities should be defined for each project.Project plans define the goals, responsibilities,resources and risks throughout the project lifecycle.Effective execution and control ensures changes aremanaged, work is completed correctly and stakeholderexpectations are met. Post project review ensureslessons are learned for future projects.

The Project Management process reviews the projectco-ordination system to ensure projects are aligned tobusiness needs. It tests the robustness of projectplanning, project execution, project control and closeout, and looks at how Process Safety is built into plant,equipment and systems through the application ofsuitable studies and Process Safety Project Reviews.

7. Training and CompetencePersonnel must have the necessary competence toexecute their jobs effectively. An effective trainingsystem is important in order to identify and deliver thetraining necessary to ensure individual competence.

Training should only be performed to fill an identifiedneed, based on an analysis of existing competence,role requirements, training objectives and employeeaspirations. Training should be delivered bycompetent instructors using appropriatecommunication techniques and resources. Effectiveorientation/inductions are important for leaders andemployees to ensure they are not at risk when theystart in a new position and understand their part inthe effective control of processes.

The Training and Competency process reviews thesystem used for training including identification oftraining needs, instructor management and trainingdelivery. It reviews the orientation and inductionprocess for leaders and general personnel as well asfor specific jobs; and considers the evaluation oftraining systems to foster continual improvement. ThePSM version specifically addresses Process SafetyKnowledge and Competence

8. Communication and PromotionGood communication is essential for effectivemanagement of change. In an ever changingworkplace, effective communication is critical both toinform and motivate personnel. Good communicationis more than telling – it should be an interactiveprocess of “giving and getting understanding”.Promotion campaigns and varied communicationchannels should be used to promote performanceimprovement in a fresh and interesting way.Management and group meetings should be focusedon key risk issues and co-ordinated to ensureimportant information is filtered up and cascadeddown effectively. Exceptional group and individualperformance should be identified and widelycommunicated to reinforce correct behaviours.

The Communication and Promotion process tests theeffectiveness of the communication system, the co-ordination of management, operational andmaintenance meetings. It examines the quality ofgroup meetings, the Joint Committee/Council andPromotion Campaigns. The system of coaching istested, as is the method of recognition for individualsand teams.

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isrs7 has been developed as a Joint Industry Project between DNV and partners from the Nuclear,Chemical and Petrochemicals industries worldwide. The PSM version builds on this to create a bestpractice standard for the management of process safety.

9. Risk ControlOnce health, safety, security, environmental and processrelated risks have been identified, a hierarchy ofcontrols should be in place to manage those risks.Engineering/design controls are the first choice toeliminate risks where possible. Administrative controlsincluding procedures, rules, work permits and warningsigns are the next choice to mitigate risk. Personal andenvironmental protective equipment are the last line ofdefence. Materials and products should be effectivelyidentified, labelled, stored and inspected to ensurequality is controlled. Controls should be in place toensure processes perform within critical parameters.

The Risk Control process evaluates the controls foridentified hazards. It assesses the effectiveness ofdemonstrating the control of process related hazards tostakeholders through the use of Major Hazard Reports.It tests the systems for identification and traceability ofproducts and the preservation of materials, includingthe control of non conforming product and finalinspection/delivery. It ensures that the creation, use andreview of operating practices and procedures is donerobustly. It also assesses the effective control ofhazardous work and the development, deployment andreview of rules, work permit and provision of personalprotective equipment.

10. Asset ManagementAsset Management is the maintenance of physical assetsin the workplace to ensure acceptably low risk foroptimum operability and cost. The maintenanceprogramme describes the integrity management(maintenance, inspection and testing) regime for eachasset in the asset register. Maintenance and operationspersonnel must co-ordinate activities to plan andexecute the programme. Inspections of appropriateareas ensure the general condition of assets ismaintained. An effective engineering changemanagement process is essential to ensure risks aremanaged when new assets are introduced. Riskassessments must also be conducted when assets areacquired or sold or their use is changed.

The Asset Management process assesses thecomprehensiveness of the asset register and the qualityof the description of the control of each asset. It teststhe effectiveness of maintenance planning andscheduling as well as the systems to control, review andimprove the execution of maintenance within the AssetIntegrity Programme. It verifies the effective use ofcollected data to identify deterioration and reviseintegrity management programmes accordingly. Thisincludes the management of defects and investigation offailures. It also tests the quality of systems for plannedconditions, special equipment and pre-use inspections.This process also reviews the comprehensiveness, qualityand application of the engineering change managementsystem and the system for inspection, measurement and

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testing of equipment. In addition, this process considershow risk assessments are applied to acquisition, changeof use and sale of assets.

11. Contractor Management and PurchasingIn their drive for efficiency, organisations are increasinglymaking use of contractors, outsourcing and temporaryemployees. A major challenge associated with this trendis how to ensure contractors comply with theorganisation’s safety and environmental standards whencontractor personnel are managed by others. Effectivecontractor management requires a rigorous selectionprocess, clear definition of responsibilities, competencechecks, adequate supervision and careful monitoring ofperformance. Excellent communication is required toensure effective co-ordination with company personneland processes. Effective purchasing and supply chainmanagement are required to ensure materials andequipment are sourced on time, of the desired qualityand at the optimum cost.

The Contractor Management and Purchasing processtests the pre-qualification, tendering and acceptancesystem for different contractor types. It tests therobustness of operational control of contractors, thefrequency and quality of the meetings between client andcontractor, the training of contractor employees as wellas their performance. It reviews the purchasing systemand the control of the supply chain. It also considers themanagement of risks around planning and execution oflogistics systems.

12. Emergency PreparednessManaging risk means that occasionally some hazards maybe realised. Effective emergency preparedness meansplanning and practising in advance so that, in the eventof an emergency, the harm to people, the environmentand to the business is minimised. Firstly, potentialemergencies should be identified and categorised. Plansshould then be developed to respond to theseemergencies. Systems for emergency communicationshould be established and technical systems, for example,for fire protection and emergency power, should be putin place. Emergency teams of experienced personnelshould be established to execute the emergency plansand their competence should be assured through regulardrills and exercises. Finally, adequate first aid andmedical support should be available if required.

The Emergency Preparedness process reviews thecomprehensiveness and categorisation of credibleemergency scenarios including those with very highconsequences. It tests the quality of the site and off-siteemergency plans as well as crisis and business continuityplans. It reviews the robustness of the emergencycommunication system, the protection systems andshutdown controls. Furthermore, it establishes therobustness of the emergency teams and the effective useof drills and exercises, and reviews the first aid, medicalsupport and mutual aid systems.

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isrs7 PSM placed additional emphasis on:

• Process Safety Information• Management of Change• Asset Integrity Management• Process Hazard Analysis• Process Safety in Design• Operating Procedures• Pre-start-up Safety Reviews• Managing Proprietary Technology

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13. Learning from EventsLearning from events is critical to drive continualimprovement in process safety, environmental andbusiness performance. An effective Learning fromEvents system transforms undesired events intoimprovement opportunities. Managers should strive tocreate a “no blame” culture in the organisation tofoster high levels of event reporting. Personnel shouldbe particularly encouraged to report near misses,which offer the greatest number of learningopportunities. All events should be risk assessed andinvestigated appropriately involving both managersand front line personnel. Investigations must uncoverthe basic causes of events before determining thenecessary corrective and preventative actions. Actionsmust be tracked to completion and the resultscommunicated to all necessary stakeholders.

The Learning from Events process reviews thereporting of events, investigation, allocation ofcorrective actions and follow up. Reported events mayinclude safety events, environmental lapses through tobreaches of security. It tests the system to learn fromsuccess and to ensure adequate participation ininvestigations. It establishes that there is a robust nearmiss/substandard conditions system in place, thatcomplaints are managed adequately and that eventsare communicated effectively. It tests the robustness ofthe action follow-up system and considers away fromwork accidents. Furthermore, it tests the analysis ofaccident data and the use of problem solving teams.

14. Risk MonitoringRisk monitoring is essential to provide assurance tomanagers and other stakeholders that all risks areeffectively controlled. Risk Monitoring builds on RiskEvaluation (Process 3) and Risk Control (Process 9) tocomplete the risk management continualimprovement loop. Effective monitoring shouldidentify where risk controls are inadequate, andinitiate the necessary improvement actions. Employeeperception surveys are often useful to monitor theperceptions of key stakeholders. Behaviouralobservation is important to reinforce desired safety,environmental and quality behaviours in theworkforce.

Task observation is important to reinforce compliancewith procedures and improve the quality of thoseprocedures. Audits are the last line of defence tocheck that all necessary systems are in place andworking.

The Risk Monitoring process reviews the performanceand robustness of the hazard monitoring systemsincluding the control arrangements in place. It teststhe effectiveness and the use of perception surveys.Also, it considers the use of behavioural observationand task observation and reviews the use of systemaudits to assure that the management system meets itsgoals.

15. Results and ReviewTo survive and prosper, a business must achieve goodresults. Business results are measured simply bycomparing actual performance against the safety,environmental and business goals set by the leadershipteam (Process 1). The challenge for business leaders isto direct business and work processes both to manageexposures and achieve good business results. Leadersshould also understand the residual levels of risk thatremain. Sustained or continually improvingperformance can be demonstrated by preparingtrends of business results. Performance benchmarkingmay be undertaken by those organisations who wish tocompare themselves with industry leaders or worldclass performance. The management system is theleadership team’s primary tool to manage risks anddrive improvement. Formal management reviews arenecessary to evaluate the performance of themanagement system, identify improvement actionsand feedback into the strategy and planning process.Corporate Social Responsibility demands thatbusinesses demonstrate good safety, environmentaland business performance to all relevant stakeholders(identified in Process 1).

The Results and Review process considers theperformance of the organisation versus its goals. Itestablishes the robustness of the management reviewsystem, the annual reporting process and the use ofeconomic and environmental indicators. It considersthe use of social performance indicators concerninglabour practices, human rights and societal andproduct responsibility. It also tests the effectiveness ofreporting to stakeholders.

isrs7 PSM offers you a flexible approach to improve process safety,environmental and business performance.

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Physical Conditions Assessment - Conditions AssessmentIndustry specific checklists support the assessment of thecondition of the process system on site. This is based onan inspection of a sample of key plant and equipmentsupported by review of documentation and recordsrelated to integrity management. Typical areas coveredare:

• Pipe, Flanges and Vessels• Small Bore Fittings (<2") & Conduit• Control and Isolation Valves• Relief and Depressurising Systems• Culverts, Bunding & Drainage• Monitoring & Control Systems• Rotating Equipment• Tanks & Materials Storage• Emergency Response Facilities and Provisions• Electrical controls

Physical Conditions Assessment - Workplace Verification QuestionsThese questions assess the understanding of front-linemanagement and personnel of process safety relatedissues. They cover:

• Perception of Hazards – What potential exposures • exist and how are they manifested?• Understanding of Controls – What do we do to • manage the hazards?• Management of Controls – How do we make sure the • controls are working properly?

Within these three areas are questions related to themanagement of changes, bypasses and overrides,contractors, coordination between functions and dataanalysis.

DNV is a global provider of services for managing risk. Established in 1864, DNV is an independent foundationwith the objective of safeguarding life, property and the environment. DNV comprises 300 offices in 100countries, with 7,000 employees.

www.dnv.com