Revekka Goldberg, "The FMEA as the Risk-Management Tool for the Hazardous Wastes Control in the Context of the Oil-Refining Industry"

The FMEA as the Risk-Management Tool for the

Hazardous Wastes Controlin the Context of the Oil-Refining Industry

Revekka GoldbergQuality Management Department

Why it is needed to manage risks?

• risk assessment and risk management – mandatory requirements of OHSAS 18000 & ISO 14000;

• new version of ISO 9004:2009;

• new series of standards ISO 31000

• inadequacy of the dominating management tools;

• special significance in the period of crisis.

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Risk and risk-management

Risk is:

• the quantifiable likelihood of loss or less-than-expected returns. (The InvestorWords Glossary)

• the probable frequency and probable magnitude of future loss. (“An Introduction to Factor Analysis of Information Risk (FAIR)”)

• a combination of the likelihood of an occurrence of a hazardous event or exposure and the severity of injury or ill health that can be caused by the event or exposure. (OHSAS 18001)

Risk management is:

• the identification, assessment, and prioritization of followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.(ISO 31000)

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Qualitative risk analysis1. Analysis of available information

• review and analysis of accounting and management documents;• the analysis of periodic reports.

2. Collecting new information• a standardized questionnaire;• personalized inspection of production units;• expert consultation (internal & external).

3. Modelling the organization’s activity• the compilation and analysis of the organizational structure;• the analysis of stream-maps.

4. Heuristic methods

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Quantitative risk analysis1. Analytical methods

• the sensitivity analysis;• the scenario analysis.

2. Probability-theoretical methods• the statistical methods;• the simulation;• the fault-three analysis;• the logical and probabilistic methods.

3. Heuristic methods of quantitative analysis

4. Unconventional methods• the artificial intelligence (neural networks);• modeling based on fuzzy logic.

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Risk-management in different sectors

• Food industry - HACCP (Hazard Analysis and Critical Control Points);

• Pharmaceutics – mathematical methods and the unique risk matrix;

• Economy - payment flows’ probability distribution analysis, certainty equivalents method, scenario methodology.

• Automobile manufacturing – the FMEA (Failure Mode and Effects Analysis).

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Examples of the Oil-refininghazardous wastes

• oil-containing pulps;

• processed pulps’ water runoff;

• demineralized pulps;

• oil desulphatisation fragments;

• elemental sulphur;

• residual asphalt;

• pulps containing hydrargyrum ;

• acid tar.

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Hazardous wastes’ life cycle

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Adopted FMEA scalesModified Severity rating Scale (S)

Rating Description Definition (Severity of Effect)

10

Particularly large-scale damage

(More than 30 000 $)

The consequences are connected with the global ecological disaster and/or the loss of human lives

… … …

2

Insignificant damage (Less than 3 000 $)

The consequences have insignificant impact on the environment of company’s affected zone. It is possible to eliminate the consequences.

1 Absent of damage There is no significant impact.

Priority risk number (PRN)=S*O*D 9

Adopted FMEA scales Modified Occurrence rating Scale (O)

Occurrence rate Description Rating

Extremely high: failure is inevitable 0,1 10

… … …

Relatively few failures 0,0001 2

The failure is unlikely 0,00001 1

Priority risk number (PRN)=S*O*D 10

Adopted FMEA scales Modified Detection and Eliminating

rating Scale (D)

Description Definition Rating

ImpossibleIt is impossible to detect and/or eliminate the failure

10

… … …

Very goodThe control will detect and/or eliminate the failure almost for sure

2

PerfectControl will detect and/or eliminate the failure for sure

1

Priority risk number (PRN)=S*O*D 11

Activities based on the FMEA

Ind. Waste Number

PRN

XXXX1 1000

XXXX2 100

XXXX3 1

FMEA

Final process Regulatory activity

Managerial decision-making

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