1. PROCESS INDUSTRIES Embedding Process Safety Leadership Neil Smith Network Services Director

2. Diversity of Process Industries’ Major Accidents 2 Oil Exploration –Piper Alpha –Deepwater Horizon Oil Refining –Texas City Petrochemicals –Flixborough –Feyzin –Pembrokeshire Fertilisers –Toulouse AZF Fuel Storage -Buncefield Specialty & Fine Chems -Bhopal -Seveso -H&W Pharmaceuticals/Inters - Akzo Buckhaven - Merck Nuclear –Chernobyl

3. Good progress on Process Safety Management post Buncefield, evidenced by: Proactive industry response to Baker Report post Texas City disaster during 2006 & 2007 Publication of CIA Guidance on PSL Best Practice in 2008 Programme of regional PSM workshops since 2009 and continuing However, leadership weaknesses continue to be exposed Maximising Business Performance Through Skills Development Background – why this project?

4. Common Threads Widely different Process Industry Sectors with many different RISKS from plant & operations However - Process Safety Leadership does not discriminate between industry sectors Catastrophes appear to originate at the sharp end Usually resulting from a series of coincident failures of hardware, management systems, procedures Exacerbated by ownership changes/restructuring Lack of understanding, ownership and clarity at Board or Senior Executive level Made worse by insufficient training & competence 4

5. Process Safety Project Board Early 2010 – Skills Academy Board members highlighted the need to address perceived gaps in Process Safety Management training Analysis of existing training indicated a high volume of training programmes aimed at PSM ‘specialists’ and a dearth of programmes for senior executives and supervisors & operators Agreement reached with CIA in summer 2010 to establish a Process Safety Management Project Board. Project Board and Expert Panel established in September 2010 Priority established to develop training standards ensuring transparency and consistency of Process Safety Leadership training for Senior Executives and Board Members of Top-Tier COMAH sites 5

6. Process Safety Project Board membership 6

7. Process Safety Project Board Purpose to build on recent work by CIA, IChemE, HSE to identify and coordinate all PSM training and development activity to develop a national framework for PSM Training & Standards to Champion the uptake of training by Top Tier companies to promote the understanding & accountability of PSM at Board & Senior Executive Level 7

8. What does the UK Process Industry want? Clarity on relevant Guidance and Training Tailored to each level in the organisation Supported by the key trade and representative bodies Underpinned by the Competent Authorities Quality Assured training to a National Standard …………..A joined-up integrated approach for all 8

9. PSM Expert Panel Purpose to specify the technical content & subject matter for PSM Guidance & Training to identify the priorities for PSM Training to develop the criteria for PSM provider accreditation to ratify the standards of PSM Training for company and individual accreditation 9

10. Focus on key roles and responsibilities 10 Above-site Senior Executives Site Leadership Technical Specialists Front-Line Supervisors Front-Line staff Training Standard for Process Safety Leadership Training Standard for Process Safety Management Gold Standard for Process Safety Specialist Training Standards to be developed

11. Process Safety Management Project 11 Project Board Expert Panel Wider industry consultation Industry Endorsed Training Standards Draft Training Standards Quality Assurance of PSM Provision

12. Quality Assurance of PSM Training A quality assured provider network for Process Safety Accreditation of the training organisation Endorsement of the course content against the training standards Approval of the trainers’ and facilitators’ skills knowledge and competence 12

13. Our Goal for 2011 To engage at least 50 companies that operate Top Tier or High Hazard sites to commit to PSM Training and Accreditation for all relevant employees 13

14. A high impact strategic project that is gaining in momentum Excellent employer and stakeholder commitment to support development activities First training standard (Process Safety Leadership) - Completed Invitation to top-tier COMAH site senior executives to participate. 74 companies have expressed an interest, 164 individuals identified for training, and 25 companies already signed up to programmes Delivery model for Process Safety Leadership training established. Assessment of training providers underway with a number of providers endorsed with more by the end of October. A number of ‘early adopters’ already committed to undertake the Process Safety Leadership training Maximising Business Performance Through Skills Development The Results so far...

15. Understand the business case for effective Process Safety Management Understand the nature of major accidents and how hazards and risks are defined and quantified. Understand the key elements of Process Safety Management Systems Understand assurance processes for effective risk management Understand how to promote a positive Process Safety culture through effective engagement of the workforce Understand the importance of good Process Safety leadership principles and how to implement them. Understand how to achieve continuous improvement in process safety performance Maximising Business Performance Through Skills Development Training Standard – Process Safety Leadership for Senior Executives

16. 1 day course to include a ‘follow up’ review within 3-6 months  Closed course (single company, external venue )  Up to 10 delegates*£6,000 per course (incl. follow up)  Closed course (single company, in-house )  Up to 10 delegates*£5,600 per course (incl. follow up)  Open course (multi company) – external venue  6 to 10 delegates£750 per delegate + £1,000 per company (follow-up) * Guide price Maximising Business Performance Through Skills Development Programme format & costs

17. What next? Identify who, at the ‘Senior Executive’ & ‘Site Director’ level should participate in the Process Safety Leadership training. Contact the Academy to book an in-house or open programme for Process Safety Leadership training. Identify PSM ‘specialist’ colleagues who can contribute to the PSM Project Board or Expert Panel 17

18. Contact details http://process.nsacademy.co.uk/process-safety.aspx Karen Brown / Emma Seaton Process Safety Training Co-ordinators 01325 740911 K.Brown@process.nsacademy.co.uk E.Seaton@process.nsacademy.co.uk Ian Mains Commercial Director 07894 483691 I.Mains@process.nsacademy.co.uk 18