When downturns occur, organizations make cuts to survive by eradicating projects, reducing headcount and deferring investments to minimize costs. These operational decisions are often at the long-term expense of asset performance.
With these decisions, instability within operations occurs, creating a ripple effect that is felt throughout the industry. Operators have to build long-term stability and sustainability into their management strategies to weather this cyclical business in key performance in a profitable way.
According to Dan Kemp, site leader, engineering, maintenance & reliability, Ascend Performance Materials, each individual can make a business decision for the betterment of all by focusing on three metrics, even if standards aren't in place within the organization. These metrics are safety, environmental standards and profits.
By focusing on safety, one can effectively manage assets and resources, which in turn gives operators the social license to operate.
"Honestly, people operate plants with too little training," said Kemp, speaking at the recent 7th Chem, Petrochem & Refining Asset Management Conference. "The person that trained an individual, whether good or bad, perpetuates and creates a life of its own. If safety is focused on from the get-go, operational performance would never be a factor."
For instance, learn the process first, before doing, he remarked. "If you don't recognize what systems control what, then how can you effectively control production?" Kemp asked.
Kemp added ageing assets and declining efficiencies are increasing problems within infrastructure, yet reliability is an issue. He defined reliability as holding oneself accountable to recognize when products/assets/instruments have expired and need to be replaced versus making it work for one more life cycle.
"You can't get by for less for forever," he said.
As assets continue to age, the risk of equipment failure increases. For instance, "75 percent of all operating units built pre- 2000 and in service have issues and are behind in technology, but how many have been updated or removed?" Kemp asked.
Also important in safety are fatigue management and ergonomics within maintenance and operations. How long is too long to work in a day? How much is too much overtime? Each operator has to create solutions for today's world before a detrimental incident occurs. A downturn forces the focus to shift from profits to operational performance. However, failure to improve performance during high-profit timeframes could have a lasting effect on the company's growth and reliability.
While many companies slash manpower and cut budgets within the organization during downturns, the direct impact of this scenario heightens those safety points. By developing and implementing company policies that are valued and well-received by employees, company performance doesn't lag, profits flatline instead of decreasing and safety is kept intact.
"Without continuous improvement, companies can't capitalize on ideas or leverage leading practices, forcing rash decisions to be made against operational practices," Kemp stated.
Finally, environmental practices, if not regarded as important, can have an adverse effect on the social license to operate. Companies oftentimes have to make swift decisions while being mindful of appropriate and sustainable health and safety operations, and only then can improvements be made to the operations and business that will lead to safety through reliability.
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