OH&S Plant Regulations make Good Business Sense Robert Enchelmaier Capability By Design Peter Kohler Robert Enchelmaier

2  OH&S Plant Regulations  Are in place for a reason  Represent good engineering practice  Make good business sense

3 ? OH&S Plant Regulations - in place for a reason  What are OH&S Plant Regulations  What is Plant  Why did the Regulations come about  When did they come into effect  How do they work  How do I find out more about them  What are they designed to achieve

4 What are OH&S Plant Regulations?  National Standard for Plant NOHSC:1010 (1994) u Uniform code for the use of plant u Performance-based (not prescriptive) u Responsibilities of designers through to employees u Process requiring demonstrable outcomes u Signing of a “Safe To Use” Certificate  Associated State Acts and Regulations u Variations in licensing u Some States altered the responsibilities  Referenced Standards

5 What is Plant?  Machinery  Equipment  Appliances  Implements  Tools  Furniture

6 Why did the Regulations come about?  Over 200 plant-related fatalities each year  65, ,000 plant-related compensation claims each year  $350 million in compensation payments  Growth in OH&S regulation in OECD countries  Need for a national standard Source: WorkSafe Australia, Economic Impact Analysis on the National Standard for Plant, February 1996

7 OH&S Plant Regulations in effect 2000 ?

8 How do the Regulations work?  Workplace OH&S responsibility structure u Plant Designers, Manufacturers, Importers, Suppliers, Installers, Plant Users (Owners) and OH&S regulators  Outcomes u Hazard identification and risk assessment u Risk control u Training u Record keeping

9 How do I find out more about the Regulations?     www1.safetyline.wa.gov.au     

10 What are the Regulations designed to achieve?  A demonstrably safe work environment  24% reduction in fatalities & accidents  $900 million reduction in compensation payouts  Improved business efficiency  Indirect savings of $7.8b over 10 years Source: WorkSafe Australia, Economic Impact Analysis on the National Standard for Plant, February 1996

11 OH&S Plant Regulations - good engineering practice  What do the regulations require?  How do these requirements differ from good engineering practice?

12 What do the Regulations require?  Hazard identification and risk assessment  Risk control  Training  Record keeping

13 Hazard Identification and Risk Assessment Process  What plant do you have  What do you want it to do  What was it designed to do  What is failure  How critical is failure u Likelihood u Consequences Standards  National Standard for Plant NOHSC:1010 (1994)  AS/NZS 3931 Risk Analysis of Technological Systems - Application Guide  AS/NZS 4360 Risk Management  IEC Failure Mode Effect Analysis  US Military Std 882B System Safety Programme Requirements  AS/NZS 3907 Guidelines for Configuration Management

14 Risk control  Eliminate the hazard  Minimise the risk u Substitute with something safer u Modify the design u Isolate the plant u Engineering controls (cut-outs, guards)  Back-up controls u Administrative controls (Safe work practices, signs) u Personal protective equipment

15 Training What, Why & How Plant Intended and actual use Hazards and risks Safe work practices Personal protective equipment Pre-work safety checks

16 Record keeping  List of Plant  Designed Use  Actual Use  Hazards associated with use  Risk control measures  Maintenance, testing, alterations  A “Safe to Use” certificate signed by the owner ? Need for Systems

17 List of Plant

18 Plant Details

19 Plant Regulation Requirements

20 Designed and Actual Use

21 HAZARD Analysis & Risk Assessment

22 How does this differ from good engineering?  Risk management  Maintenance engineering analysis  Pre-work safety

23 Risk Management AS/NZS 4360 Risk Management:  Define the Context  Specify probability and consequence criteria  Identify and prioritise hazards  Develop risk mitigation strategies and tasks  Implement  Review and monitor US MIL-STD 882C System Safety:  Define the Context  Specify probability and consequence criteria  Prioritize the hazards using a hazard matrix  Develop risk mitigation strategies and tasks  Implement  Review and monitor

24 Maintenance engineering analysis IEC Failure Mode Effect Analysis  Focus is on what assets “do” or “their intended use”  Failure is defined in terms of what the business wants each asset to “do”  Maintenance tasks are developed by understanding: u What the business wants each asset to “do” u The hazards associated with each asset in the delivery of what it “does” u The likelihood of the occurrence of each hazard u The consequences to the business of each hazard u What needs to be done to reduce the likelihood and/or consequence of each hazard

25 OH&S Maintenance Hazard Analysis Risk Assessment Risk Control  Health & Safety  Efficient Plant Operation Capability Assurance

26 Good engineering practice  One approach that delivers: u OH&S requirements u Plant maintenance requirements u Operating tasks (start, run, stop and emergency) u Plant instrumentation requirements  Simple  Integrated  Consistent  Complete 

27 Plant, Operations and Maintenance

28 OH&S Plant Regulations - good business sense  Costs  Benefits  Opportunities

29 OH&S Plant Regulations - the cost  Employers Costs over 10 years u Hazard Identification $303M u Risk Control $3,358M u Training $903M u Record Keeping $123M  Other parties costs not available Source: WorkSafe Australia, Economic Impact Analysis on the National Standard for Plant, February 1996

30 OH&S Plant Regulations - the benefits  Reduction in fatalities and injuries associated with plant  Lower operating costs from nationally uniform regulations  Situation specific, not global responses from performance- based regulations

31 OH&S Plant Regulations - the opportunities  Significant efficiencies with one approach, one system u OH&S Plant Regulations u Plant maintenance  Consistency across all plant & people issues u Safe to Use u Efficient operation  Involvement of stakeholders u Common language  hazards, risks, likelihood, consequences, control

32  Introducing Assure™  OH&S Plant Regulations  Maintenance Planning  Analysis & Compliance demonstration  Single- and Multi-User  Windows 95, 98, NT  Office 97, 2000  Audit, Premium & Professional versions  Integration with commercial Maintenance Management Systems  In use in major projects

33  Introducing Assure™  Audit against selected Standards  Hazard Analysis  Task Specification u Maintenance u Operations u Testing u Training  Packaging of Standard Activities  Pre-work safety check (Job Safety Analysis)  Production of Technical Manuals  Data libraries

34  OH&S Plant Regulations  Are in place for a reason  Represent good engineering practice  Make good business sense  Thankyou

35 Contacting CBD  Phone:  Fax:   Post:PO Box 125 Granville NSW 2142 Peter Kohler Robert Enchelmaier