OH&S Plant Regulations make Good Business Sense

1. OH&S Plant Regulations makeGood Business Sense Robert Enchelmaier Capability By Design Peter Kohler Robert Enchelmaier

2. OH&S Plant Regulations 4 • 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) • Uniform code for the use of plant • Performance-based (not prescriptive) • Responsibilities of designers through to employees • Process requiring demonstrable outcomes • Signing of a “Safe To Use” Certificate • Associated State Acts and Regulations • Variations in licensing • 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 - 70,000 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 1994 2000 ? 1996 1994 1995

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

9. How do I find out more about the Regulations? • www.worksafe.gov.au • www.workcover.vic.gov.au • www.workcover.nsw.gov.au • www1.safetyline.wa.gov.au • www.workcover.sa.gov.au • www.detir.qld.gov.au/hs/hs.htm • www.wsa.tas.gov.au • www.nt.gov.au/wha • www.act.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. 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 Likelihood 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 61078 Failure Mode Effect Analysis US Military Std 882B System Safety Programme Requirements AS/NZS 3907 Guidelines for Configuration Management Hazard Identification and Risk Assessment

14. Risk control • Eliminate the hazard • Minimise the risk • Substitute with something safer • Modify the design • Isolate the plant • Engineering controls (cut-outs, guards) • Back-up controls • Administrative controls (Safe work practices, signs) • 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 • Need for Systems • 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

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. 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 Risk Management

24. Maintenance engineering analysis IEC 61078 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: • What the business wants each asset to “do” • The hazards associated with each asset in the delivery of what it “does” • The likelihood of the occurrence of each hazard • The consequences to the business of each hazard • What needs to be done to reduce the likelihood and/or consequence of each hazard

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

26. Good engineering practice 4 • One approach that delivers: • OH&S requirements • Plant maintenance requirements • Operating tasks (start, run, stop and emergency) • 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 • Hazard Identification $303M • Risk Control $3,358M • Training $903M • 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 • OH&S Plant Regulations • Plant maintenance • Consistency across all plant & people issues • Safe to Use • Efficient operation • Involvement of stakeholders • Common language • hazards, risks, likelihood, consequences, control

32. 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 Introducing Assure™ 4

33. Audit against selected Standards Hazard Analysis Task Specification Maintenance Operations Testing Training Packaging of Standard Activities Pre-work safety check (Job Safety Analysis) Production of Technical Manuals Data libraries Introducing Assure™ 4

34. OH&S Plant Regulations 4 • Are in place for a reason • Represent good engineering practice • Make good business sense • Thankyou

35. Contacting CBD • Phone: +61 2 9681 6334 • Fax: +61 2 9681 6335 • Email: kohler@tpg.com.au • Post: PO Box 125 Granville NSW 2142 Peter Kohler Robert Enchelmaier