Process Safety Management in Saudi Arabia Chemical Companies - Research Proposal Example

Process Safety Management (PMS) in Saudi Arabia chemical companies How can the development and application of the PMS system take place in the absence of uniform legislations and safety standards in Saudi medium and small firms? Name Professor Course Institution Date Introduction In recent years, many governments and organisations both local and international have come to term with the concern of the number of incidents relating to the chemical industry. The main objective of this project is to examine Occupational Safety and Health administration (OSHA) standard Process Safety Management of Highly Hazardous Chemicals (29 CFR 1910.119). This has been a concern since 1992 and especially after the world’s worst industrial accident in Bhopal, India where several thousand lives were lost after chemical disaster. What has become of concern to the government, local and international organisations dealing with the chemical industry is the alarming rate of increase in these incidents. The main concern of this study is the current phenomenon of chemical industries freely releasing toxic, explosive, and flammable chemicals without regulations. These same chemicals are the ones causing massive loss of lives and damaging property . This is because of the ignorance of safety standards and regulations by these industries. Saudi Arabia is a vast region that has a vast number of chemical industries. The area has been identified potential for the study because of the rising number of chemical industries including the most hazardous such as petrochemical, gas, and oil. With this study, the focus shifts to the small and medium businesses in Saudi Arabia East Region. The study will be a survey sample design that will utilise the use of reviewing suitable literature, documents from the government database and various government sectors. The study will also utilise the use of and issue of questionnaires to the sample chemical industry employees from the Dammam 1st and Dammam 2nd cities. The literature review will comprise of three specific means of which, the study will rely on to collect the necessary information on the OSHA PSM standards in Saudi Arabia companies. This will further help in determining whether there is a need to develop and apply these standards. The first step will understand of the topic by reading books, organisational websites, and previous theses done regarding the same. From there, there will be a study into the recent journals, case studies, books and some internet sources concerning the past chemical studies. The final step will involve highlighting, collecting, and compiling of the relevant data from these exercises. From the literature review, the research team can then formulate questions to use during the interviews. The review will also help in coming up with comprehensive questionnaires that will seek to understand any issues and answers that did not suffice from the literature review. After developing, the questionnaire there will be a need to first, carry out a validity test, reliability, and stability of the questionnaires using a small sample of the total sample population. Literature review The demand for urgent safety measures is on the increase in many societies especially when it comes to the industrial sector (Bahr, 1997). The rate of hazardous activities taking place in the industrial sector is common and this is what necessitates the introduction of safety standards. The 20th century has witnessed a high increase of industrial accidents to which there has been a great loss of life, property, and damage to the environment globally. This situation has prompted for the establishment of several organisations and safety standards throughout various nations. The general idea behind these organisations is that they have laws and regulations that focus on the improvement of the safety of employees in their place of work. They further emphasise on critical concepts such as safety, identifying hazards, and assessing risks. These processes are summarised into a diagram as below: System Safety Process diagram Figure 1: System Safety Process [Pla05] OSHA is a system with numerous standards, guidelines, and regulations guaranteeing the understanding of health requirements and job safety by all workers, employees, and employers. There is the OSHA Process Safety Management standard (29 CFR 1910.119) started in 1992. This process deals with presentation of management ideologies to the identification, control, and understanding of process hazards therefore preventing process-relating incidents. The standard covers a specific list of chemicals that have various hazards, risks, including their reactivity and a class of flammable chemical together with hazardous substances (US Occupational Safety and Health Administration (US OSHA), 1992). After the findings in Bhopal accident and other factory or company chemical accidents, in 1992, these standards became mandatory (Karthikeyan, 2004). The OSHA’s PMS guidelines are readily available through compliance booklets OSHA 3133 (US Occupational Safety and Health Administration, 2011). The PSM process is the highest priority-operating requirement owing to the fact that avoiding disaster is the key consideration. PSM is under implementation worldwide with more and more companies continuously adopting this process as a complete Operational Integrity Management (OIM) initiative (Sutton, 2010b). Furthermore, it is evident that OIM can go the extent of subsidiary areas such as transportation, pipelines, offshore oil, and gas as demonstrated in the below figure. Figure 2: Operational Integrity Management Programs[USO11] To understand the importance of this study some of the past industrial accidents were analysed and some the findings were as follows. According to a study by Bertazzi (1991) he analyses the seveso explosion that occurred in 1976. This period saw Italy experience a colossal loss after an explosion occurred at Seveso, Italy. This was a result of uncontrolled exothermic reactions that raised the pressure and temperature of a vessel. The result was one of its valves raptured causing fluid mixtures into the air. The release of hazardous substances over 300kg including a mixture of dioxins produced a sizeable impact to the environment. Most affected were the citizens and animals living in that area (Bertazzi, 1991). The investigations from this disaster were of immense in addressing certain problems in plant designing plans. In 1984, the worst-ever disaster from a chemical industry happened on December 3, in Bhopal India. This disaster caused an intense effect on various countries including the United States on the practice of safety standards. It also caused these countries to renew their legislation so that they could have a clear and open access to information concerning hazards (Jasanoff, 1988). The immediate cause of the accident was found to be contamination of the MIC tank by around 2000 pounds of water. The valve meant to prevent tank from over pressurisation-unbolted this lead to a discharge of over 54,000 pounds of untreated vapour containing MIC into the atmosphere within a period of two-hours (Kletz, 2001). Analyses into the situation show that, complex sets of interdependent technological and organisational factors played a precarious role in the incident. One of the key safety standards that emerged out was that there were inadequate maintenance procedures and safety standards at the plant. This is what led to the huge number of casualties in the disaster (Joseph, et al., 2005). Another industrial disaster includes the BP-Texas City explosion that happened in March 23, 2005 at a major of British Petroleum Refinery in Texas, US. The death rate stood at 15 workers and related injuries of more than 170 (Manca, et al., 2011). Various factors leading to the disaster were noted including equipment failure, poor working attitudes, inadequate inspection, insufficient safety, equipment failure, poor management, and inadequate risk assessment. Among these, there were also other reports with more causes of the incident such as use of blowdown tanks to save money, which is not in accordance to government rules (Kalantarnia, et al., 2010). There are other disasters in that have also resulted in great losses some of the include the PEMEX LPG Terminal explosion Mexico City, Mexico in 1984, there is the Piper Alpha accident, UK, that happened in 1988, and there is also the Buncefield Oil strong facility fire that happened in 2005. PMEX LPG explosion claimed 500 lives and injured over 6,400 people with financial losses totalling US$ 1.3 million. The primary cause of the accident recorded as overall failure of basic safety standards, including the plant layout (Health and Safety Executive (HSE), 1984). The Piper Alpha incident in UK is the world’s worst oil field disaster. This was an explosion of the oil and gas platform in the North Sea resulting 167 deaths and over US$ 3 billion in losses (Woolfson & Beck, 2005). The Cullen report together with other studies has revealed several reasons for this incident. Some include lack of proper safety standards, lack of training procedures poor emergency management, and poor communications (Singh, et al., 2010). The Buncefield explosion occurred in December 11, 2005. It caused 40 injuries and over 2000 residents to evacuate because of the resulting large smoke. Management failure, poor staff training, and poor risk assessment were reported to be some of the key reasons for the accident (Vautard, et al., 2007). Project rationale It is common for the likelihood of a disaster to occur in an area where effectiveness in control procedures is lacking to be high. Hazardous activities in industrial sectors are common and this prompts for the necessity of introducing appropriate safety standards (Bahr, 1997). Furthermore, basing from past events when these control measures are in place but do not perform to their expectation, the outcome becomes extremely serious. Globally, the chemical industry is one of the most affected when it comes to industrial disasters. These types of accidents are under analysis with many views and understanding coming up of the potential damage associating with various incidents (Khan & Abbasi, 1999). It is therefore an area of concern prompting the need to carry out a research in a move to understand the ground situation of the phenomenon. Saudi Arabia is a region with a large number of existing and developing industrial cities give this study a better test ground. The main reason of this research is to get an insight and provide recommendations on the OSHA PMS safety standards in Saudi Arabia chemical industries. From the findings, OSHA Process Safety Management (PMS) is a popular safety standard that will be used in this study. This study examines the OSHA PMS in detail including its relation to regulations and legislation. The information is obtainable through carrying out a literature review on the safety standard and its 14 standards, which generates an in-depth understanding of the necessary knowledge. The aim for this research is to identify whether there can be the development and application of the OSHA Process Safety Management in Saudi Arabia chemical industries. Moreover, whether there can be development of a comprehensive understanding of significant PSM and implementation in both small and medium businesses in Saudi Arabia. The small and medium businesses tend to be the ones that lag behind when it comes to implementing safety standards. For this reason, they provide a good study ground for this project. The first precaution of preventing accidents is to first, understand the mechanism of the accidents. Through this understanding, the development of a principle control and prevention strategies can then take place. For this study, a survey study design is to sample out Saudi Arabia chemical industries in the two highly industrial cities Dammam 1 st and Dammam 2nd, both found in the Saudi Arabia East region. The research is to come up with a comprehensive insight into this region’s laws, legislation, and safety standards safeguarding its citizens from industrial chemical disasters. The primary method to use for the survey research is the use of questionnaires. From the research report, it is easier to finally, come up with conclusive measures to take in order to enforce these safety standards. In the end, the research should be able to answer questions such as how possible it is to develop PSM in Saudi Arabia. The study also seeks to understand whether the elements of PSM are in use in Saudi Arabian organisations. Finally, by reading the final research report of the study one should be able to understand whether in the absence of uniform standards and legislations the OSHA PSM system can still apply in Saudi Arabia. Project Aims and Objectives The fundamental aim of this study is to be able to provide a clear understanding of OSHA PSM standard. This will facilitate the development of a complete awareness of significance to implement PSM in medium and small business of Saudi Arabia. These businesses are the ones that account for the highest number of chemical industry workplace accidents in Saudi Arabia. The objectives of the study are to: Assess Saudi Arabian legislation in terms of safety in organizations to identify the various provisions that apply to PSM. Assess safety standards to develop a model of PSM in Saudi Arabia Assess current safety practices and identify common PSM deficiencies. Develop a systematic process for the gradual application of PSM in small and medium businesses in Saudi Arabia. Provide information for further consideration related to PSM by means of a conclusion and recommendations. Research participants The main participants of this project will come from two industrial cities Dammam city 1st and 2nd located in the east region of Saudi Arabia. Reason for selecting these cities is their location in the east region where the largest petrochemical and chemical sectors are found in the kingdom. The eastern region is divided as per the table below: Industrial City Dammam 1st Dammam 2nd Al Ahsa Developed area 2,500,000 25,500,000 1,500,000 Total area 2,500,000 25,500,000 1,500,000 Number of factories 127 653 100 Number of employees 22,000 38,242 7,475 Spaces available No Yes No From the two cities there are 69 companies from which the research can pick from several of them to provide the study sample, these companies are grouped as below: Location Number of chemical companies Dammam 1st 13 Dammam 2nd 56 Total 69 In the following list is a narrowed down list of the companies that are to be used in the study with corresponding number of participants per company: N Company Name Location Numbers of participants 1 Basic Chemical Industries (BCI) Dammam 1st 10 2 Abdullah Hashim Industrial Gases & Equipment Co. Ltd Dammam 1st 10 3 Baker Petrolite Saudi Company Ltd Dammam 1st 10 4 Bitumat Company Limited Dammam 2nd 10 5 Saudi BASF The Chemical Company Dammam 2nd 10 6 Clariant Ali A.Tamimi Co. Ltd Dammam 2nd 10 7 Oasis Ameron Paints & Protective Coatings Ltd Dammam 2nd 10 8 Gulf Chemical and Industrial Oils Co Dammam 2nd 10 Total 8 companies 80 From each company the ten participants are to aid in providing comprehensive data relating to the study through the help of questionnaires and interviews. The participants will range top management down to the normal employees. There will also be need to interview both employees working in the manual section as well as those dealing with official work, concerning the OSHA PSM process. Methodology The methodology tools in use for this study relates to the objectives of the research and they will include use of interviews, questionnaires , document reviews, review of statistical data from official sources and websites. OSHA Process Safety Management is the key subject for this project. All the highlighted methods will then be put into effect over the entire period of carrying out the research project. Review of government documents together with in-depth analysis of official government sectors will help in achieving the set aim and objectives of the research. Questionnaire issuing will take place to cater for the survey, which will be handed to the industrial cities’ employees of chemical industries in Dammam 1st and 2nd. On completion the collected data will then be submitted to interpretation and analysis through report writing and compilation as well as tabulation of the facts. The methodology will involve a number of steps to come up with the final report. The first step will be the literature review; this will collect the necessary information on the OSHA Process Safety Management standards in the Saudi Arabian chemical industries. The review will also anise whether it is possible to develop and apply these standards. The second step will involve the development of questionnaire. In accordance with Fellows and Liu [Fel08] to get the bulk of a research data in the management sphere and social sciences it is necessary to use the aid of questions in form of interviews, surveys, and case studies[Fel08]. For the purpose of this study, this step involved developing of the survey questionnaire. This questionnaire will rely on the information gathered during the literature review to come up with the appropriate questions that will address the current situation of PSM. The questions are to be structured in a way that they cover the all the application procedures of the PSM process. This will include PSM policy and responsibility, performance monitoring, PSM elements, consultation, and communication. The questionnaire will be complete with a prologue explaining the purpose of the study, background of OSHA PSM, confidentiality and information on the aims of the study. Additionally the questionnaire will include demographic section allowing the respondent give personal data such as civil status, age, and occupation. The questions will be closed ended questions giving the respondent a choice of answers in this case YES, and NO check boxes. The questionnaire will comprise of five sections that will be outlined in accordance with the following diagram: Section 1 will cover the respondents’ personal information and details. Section 2, will comprise of the general information relating to the company such as size of the company or organisation. The third section will talk about the Process Safety Management elements, policy, and responsibilities. The fourth section will cover the safety committee and enforcement in the company through communication and consultation. The final section will look at the Process Safety Management performance monitoring. Upon completion of the questionnaire layout, it will need to be subjected to a validity test, reliability analysis and a stability test. The validity test also called pilot test takes a test survey using a smaller group before subjecting it to the actual project[Alb10]. This pilot test checks on various issues such as the following: Whether each question answers what it is required to measure? If all the words in the questionnaire are understood? The perception of each respondent towards the questions and how they interpret them? Whether the respondents adhere to stated instructions? Does it create a positive impression that motivates people to respond? How long does it take to complete and record the time taken to complete the questionnaire and decide whether it is reasonable? Does it collect the information we want? Discard all unnecessary, difficult, or ambiguous questions. The next test is a reliability test, which is a vital area as it establishes whether the instrument being used is reliable. This study will use the Cronbach’s Alpha (α) which utilises the use of a correlation coefficient in validating the questionnaires. This method also aids in identifying the stability of the questionnaire. Data analysis will be aided by use of appropriate statistical tools namely the “Statistical Package for the Social Sciences” (SPSS). This is a widely used tool can analyse, manipulate, and present data. Limitations Some of limitations for this study include lack of adequate information brought about because of the management policies of some of the organisations. Another limitation is the lack of previous studies on the same topic in Saudi Arabia region, this can limit the rate of in-depth analysis due to limitation on the literature review material. Conclusion and Benefits of the research In conclusion, this project is aimed at improving the standards of the employees and citizens of areas with chemical industries nearby. The environment is also among the concerns that this paper will address. There is also need for concern on the safety of the workers and civilians in this region because over 25% of the world’s oil comes from Saudi Arabia. According to Australia Arab Chamber of Commerce and Industry (2011), it is estimated that this is to serve for at least the next 80 years. The countries 75% of budget revenue is from the same industry and goes up to 90% when with petrochemicals. This petroleum sector is responsible for generating up to 45% of the country’s GDP. Looking at these statistics it is clear that the safety of industrial workers need to be fully enforced as a result this would maintain the countries steady growth. This does not only apply to the Saudi region but to the rest of the world as well. Besides that, the project report will also generate useful research findings on the OSHA PSM process that can aid in further research. Furthermore, it can provide an understanding of the whole process to industries that want to incorporate it in their system. Project plan Bibliography Pla05: , (Plan, 2005), USO11: , (US Occupational Safety and Health Administration, 2011), Fel08: , (2008), Fel08: , (Fellows & Liu, 2008), Alb10: , (Albrecht, et al., 2010), Read More