1. Unsafe acts & conditions andnear missPresented by:Faiz MohammadKhanM.Tech-HSE (11)Defining Key PerformanceIndicators

2. Key Performance Indicator It is industry jargon for a type of performancemeasurement. An organization may use KPIs toevaluate its success, or to evaluate the success of aparticular activity in which it is engaged. Sometimes success is defined in terms of makingprogress toward strategic goals, but often success issimply the repeated, periodic achievement of somelevel of operational goal (e.g. zero defects, 10/10customer satisfaction, etc.). 3. Key Performance Indicator There should only be a small number of KPIs but theyshould provide a credible measurement as to trends.Generally they will be normalized. For example, rather than simply reporting the numberof process safety incidents, it is more useful to reportthe number of incidents per employee. Doing sofacilitates comparisons between different sites andorganizations. 4. Categorization of Indicators Quantitative indicators which can be presented witha number. Qualitative indicators which cant be presented as anumber. Leading indicators which can predict the futureoutcome of a process Lagging indicators which present the success orfailure post hoc Input indicators which measure the amount ofresources consumed during the generation of theoutcome Process indicators which represent the efficiency orthe productivity of the process 5. Cont. Output indicators which reflect the outcome orresults of the process activities Practical indicators that interface with existingcompany processes. Directional indicators specifying whether anorganization is getting better or not. Actionable indicators are sufficiently in anorganizations control to affect change. Financial indicators used in performancemeasurement and when looking at an operatingindex. 6. From Hazard to Harm 7. Lagging Indicator Lagging (sometimes called trailing) indicators arewidely used to measure performance particularlyfor occupational safety and equipment reliability.These indicators include well-established parameterssuch as near misses, lost time accidents, first aidcases and recordable injuries. Lagging indicators are widely used because,assuming that there are enough events to ensurestatistical significance, they allow management toestablish baselines, measure trends and to compareresults with other facilities and companies. 8. Lagging Indicator 9. Cont.One oil company, for example, has set the followingKPIs for itself (some are monthly, others quarterly andthe remainder annual)- Fatalities; Days away from work; Recordable injuries (as a function of exposure hours); Recordable illnesses; Spills from primary containment (even if secondarycontainment was effective); Spills affecting the environment (failure of allcontainment barriers); Volume of oil spilled that is not recovered; 10. OSHA Recordable RateCompanies in the United States pay particular attentionto the OSHA recordable rate. An OSHA recordableinjury is an occupational injury or illness that meets oneof the following criteria: Death; Loss of consciousness; Days away from work; Restricted work activity or job transfer; or Medical treatment beyond first aid. 11. OSHA Recordable Rate It is calculated for the previous three years and isdefined as: Number of Recordable Cases x 200,000/Total HoursWorked The OSHA Lost Workday Incident Rate is similar: Number of Lost Workday Cases x200,000/Total HoursWorked 12. OSHA Recordable Rate A lost workday - equivalent to a lost time injury - isone where an individual misses more than one day ofwork due to an injury sustained while at work isanother widely used criterion for measuringoccupational safety. 13. Process Safety It is difficult to identify effective lagging indicators foruse with process safety. The most obvious difficulty isthat major process safety incidents do not occurfrequently enough to develop a statistically significanttrend. If many facilities and companies pool their data it maybe possible to that some trending results can bedeveloped. However, such results are always open todoubt, not least because different organizationsdefine terms differently. 14. Process Safety For example, the Baker report (Baker 2007) providesa list of events that fall under the term fire. That listincludes a fault in a motor control centre. It isquestionable as to how many organizations would callsuch an event a fire unless it resulted in flamesand/or smoke. 15. Process Safety An additional difficulty is that many process safetyevents particularly those that are near misses may simply not be recognized for what they are. For example, an operator and a mechanic may fix aleaking pump seal, not realizing how close they wereto having a major accident. 16. Leading Indicator Leading indicators are forward-looking. They providemanagement with an assessment of their processsafety program. Most leading indicators measure some type of activity,although minor incidents, such as the leaking controlvalve discussed before, could also fall into the leadingindicator category. 17. Leading Indicator The following are some examples of leading indicators. Number of field visits and inspections; Number of safety audits; Number of safety communications and safety meetings; Percentage of incidents investigated; Number of near miss responses; Number of positive rewards and recognition given; and Safety communications; Claims reporting analysis; Safety committee activities; and Number of safe/unsafe behaviors/acts observed. 18. API RP 754 Following the fire and explosion at BPs Texas Cityrefinery in Texas City, Texas, the Chemical SafetyBoard (CSB) conducted an investigation. One of therecommendations from that investigation called for theAmerican Petroleum Institute (API) and the UnitedSteel Workers (USW) to work together to develop anANSI standard for leading and lagging indicators. Although the USW later withdrew from the program theAPI continued with the development of a standard whichbecame Recommended Practice 754, Process SafetyIndicators for the Refining and Petrochemical Industries.It was published in April 2010 (API 2010). 19. TiersRP 754suggests thatprocess safetyperformancecan bemeasuredthrough theuse of fourtiers ofindicators.These tiersrepresent atransition fromleading tolaggingindicators. Tier1 is the mostlagging, Tier 4is the mostleading. 20. Tiers Events in the bottom section occur more frequentlythan in the top section and generally have a lowerconsequence. It is assumed that there is a directcorrelation between the tiers, i.e., that a shift inperformance at one level will have a correspondingchange at the level above. However, it is important towatch for false assumptions. For example, a newly invigorated incident reportingprogram may lead to more Tier 4 incidents beingrecorded, even if there has been no actualperformance change. 21. Tiers Tiers 1 and 2 are suitable for nationwide public reporting,and thus have a tightly defined scope. Any Tier 1 or Tier 2Process Safety Event begins with an unplanned oruncontrolled release of any material, including non-toxicand non-flammable materials resulting in one or moreconsequences described in the RP. These events are referred to as a Loss of PrimaryContainment (LOPC), which is defined as follows: An unplanned or uncontrolled release of any materialfrom primary containment, including non-toxic andnon-flammable materials (e.g. steam, hot condensate,nitrogen, compressed CO2 or compressed air). 22. Tiers Tiers 3 and 4 are intended for internal use atindividual sites. Quantification is measured through use of theProcess Safety Event (PSE) rate, which iscalculated as follows: PSE Rate = [Total PSE Count x 200,000] / TotalWorkforce Hours Each Tier has its own PSE rate. 23. Tier 1 Process Safety Event A Tier 1 event is one that includes loss of containment(LOPC) with the greatest consequence, as defined byRP 754. These include: An employee, contractor or subcontractor days awayfrom work injury and/or fatality; or A hospital admission and/or fatality of a third-party; or An officially declared community evacuation orcommunity shelter-in-place; or A fire or explosion resulting in greater than or equal to$25,000 of direct cost to the Company 24. Tier 1A pressure relief device discharges to the atmosphere(directly or via an downstream destructive device suchas a flare) that results in one or more of the followingconsequences: a)Liquid carryover; b)Discharge to a potentially unsafe location; c)An on-site shelter in place; d)Public protective measures such as a road closure;and e)Release of materials greater than the thresholdquantities. 25. Tier 2 Process Safety Event Tier 2 events are similar to Tier 1 but have a lowerconsequence. They include: An employee, contractor or subcontractor recordableinjury; or A fire or explosion resulting in greater than or equal to$2,500 of direct cost to the Company Pressure relief discharges but with different thresholdquantities. 26. Tier 3 Challenge to SafetySystemsTier 3 events typically represent challenges to the barriersthat prevent near misses from turning into actual events.They are events that stop short of Tiers 1 or 2. Examplesinclude: Safe operating limits excursions; Demands on safety systems such as pressure safetyrelief valves; Primary containment inspection or testing results outsideacceptable limits; and Other Loss of Primary Containment (LOPC) events thatare less than what is required for Tier 2. 27. and Management SystemPerformance Tier 4 indicators provide measurements of operatingdiscipline and the management system performance.Like Tier 3 they are site-specific and will not generallybe used to compare the performance of differentcompanies. Examples of Tier 4 items are: A process safety action item is closed on schedule; Training is completed on schedule; Safety critical equipment items are inspected; and Emergency response drills are completed. 28. Data Submission In order to encourage consistent reporting, the APIhas published a Guide to Reporting Process SafetyEvents along with a matching spreadsheet. The Guide provides information for the reporting ofTier 1 and Tier 2 events. It also provides a glossarydefining the terms used in RP 754. It also provides guidance on the selection ofcategories (such as types of refining process) to beused in reporting. 29. Selection of KPIs The performance indicators provided for Tiers 1 and 2are useful for comparing facilities with one another.However events at this level occur only rarely and donot provide an adequate statistical basis whereby acompany can improve its own performance andimplement a continuous improvement program. 30. Thank you