Simultaneously Improving Safety Awareness, Safety Attitudes and Business Results – A Case Study

Abstract

“The first duty of business is surviving, and the guiding principle of business economics is not the maximization of profit, it is the avoidance of loss.” Peter Drucker Achieving acceptable business results is a priority for all facilities (industrial, chemical, process, etc). Based on this premise, a facility with poor economic performance will also be more likely to under-invest in safety activities. That said, reaching economic goals while maintaining satisfactory safety levels can sometimes be a challenge. This paper describes techniques that were used to evaluate risks at a facility, focusing on major accidents. It was discovered that there was an inherent cost in not implementing certain recommendations since the cost of personnel exposure, repair, clean-up, replacement, business interruption, etc. far exceeded the cost of implementing the measure. Overall, the facility reduced the personnel risk from major accidents by an estimated 95%. Not coincidentally, their combined safety capital costs and expected losses dropped by 90% from the same measures. The process graphically demonstrated to plant management the positive economic benefits of improving their safety systems. This in turn resulted in a major improvement in safety awareness and attitudes by operators and management alike.