Unlocking the Power of Functional Safety: From Crisis to Prosperity in the Process Industry

2023-10-23

Ladies and gentlemen, imagine a world where every process, every system, and every operation in the process industry functions flawlessly without the shadow of risk or uncertainty. Picture a future where safety isn't just a requirement but where it is a strategic advantage that propels businesses to unprecedented heights.

Today, I'm here to share a vision with you, a vision of functional safety, not as a burden but as a beacon lighting the way for a safer, more profitable, and more sustainable future for your company and the process industry.

Imagine a scene like this, a massive explosion, fire billowing into the sky, and a devastating aftermath. This is the haunting image of the Buncefield accident of 2005, a catastrophe that shook not only the town of Buncefield but also the entire process industry.

Let's delve into the details of this tragic event and more importantly, the profound lessons that it actually holds.

Now, Buncefield is today home to a large oil depot, boasting a storage capacity of about 270,000 cubic meters of fuel. In the UK, it's the fifth-largest oil depot. But on that fateful day, one of its tanks was overfilled, setting off a chain reaction of explosions that razed 21 tanks in its wake.

The sheer magnitude of this blast was so immense that it echoed across borders. It was heard by people walking on the shores of Northern France, Belgium, and the Netherlands. What's truly shocking, though, is that the root cause of this devastation was something seemingly minor. A manual level gauge was stuck. And on top of that, there was a non-working independent high-level switch. To make matters worse, this issue had been known to management for a month but was not repaired. The end result was a lot of people injured. Luckily, nobody died. But in the end, there was huge environmental damage, and in the end, five companies faced legal convictions.

But instead of going into the details of this, let us talk the language of business. Let us talk numbers.

The total investment in the Buncefield oil facility was approximately 210 million US dollars. However, the losses incurred after the explosion, they were estimated at a staggering 1.4 billion US dollars. If we calculate the return on investment, it paints a very grim picture. A jaw-dropping minus 767%.

But here is where it gets truly astonishing. The cost of replacing that faulty high-level switch, let us say it was a 5,000 US dollar investment, could have averted this catastrophe. So let's introduce a concept I call the return on lack of investment or ROLI. When we calculate ROLI with a 5,000 US dollar investment, the result is a mind-boggling minus 280,000%. In simpler terms, in this tragic case, a lack of investment totaling 5,000 US dollars resulted in an astronomical loss of 280,000%.

It's a stark reminder that neglecting functional safety isn't just a financial misstep. It's a grave risk to human lives and the very existence of a business. And let's not forget, in many instances, the price of such negligence, it goes beyond the financial realm. It often involves injury, loss of life, and irreplaceable damage to the environment.

Functional safety, my friends, isn't just a matter of numbers. It's about protecting lives, it's about preserving assets, and it's about ensuring the sustainability of your company and of our industry.

So after witnessing the devastating consequences of neglecting functional safety, I pose a question to you all. Is it worth investing in safety systems? Now here's the trick. It's not really a question with multiple answers. The only answer is actually a resounding yes. And if you say yes, you are implicitly acknowledging that when it comes to safety systems, functional safety is non-negotiable.

But what does this yes entail in practice? It's not a blank check to buy as many safety systems as possible. Rather, it's an investment. It's an investment in competency. It starts with investing in the knowledge and the skills of your employees, but not just your employees, also your contractors. They together are the guardians of the safety on the ground. It also means investing in hazard and risk analysis. Delving deep into understanding potential hazards and risk is a cornerstone. Identifying vulnerabilities and addressing them is the bedrock of functional safety. Furthermore, it means investing in the right safety solution. In the end, it's about carefully selecting and then designing and manufacturing the safety solution that is right for you, tailored to your unique processes and operations. And last, but certainly not least, it's about investing in operations, maintenance, and repair of these safety systems. It doesn't end with implementation. There is a continuous investment needed in the operating, maintaining, and repairing of these solutions over their full lifetime.

Now, some of you may say, but all this investment, it's going to cost our company a lot of money. And yes, you are right. It does require money. But here's the catch. This is an investment that pays dividends. It's an investment that, in the end, costs much less than the alternative.

When you invest in functional safety, you are essentially investing in risk mitigation. You are reducing the probability of accidents and their severity. You are protecting your assets from damage and loss. And perhaps most importantly, you are safeguarding the lives of your employees, your contractors, and the communities where you operate.

Think of functional safety as an insurance policy for your business. You pay a premium in the form of investment, but in return, you get protection. And when accidents are prevented, when disasters are averted, you reap the rewards in the form of reduced operational disruptions, lower insurance premiums, and, most importantly, the trust and loyalty of your employees and stakeholders.

But the benefits of functional safety extend beyond financial returns. They extend into the very fabric of your company's culture. When safety is a top priority, it becomes ingrained in your organization's DNA. It shapes the behavior of your employees, from the boardroom to the factory floor. It fosters a culture of accountability, responsibility, and vigilance. And as this culture takes root, it becomes a self-sustaining force that drives continuous improvement, innovation, and resilience.

So, ladies and gentlemen, investing in functional safety isn't just about complying with regulations or checking boxes on a list. It's about making a commitment to the well-being of your people, the longevity of your business, and the sustainability of our industry.

In conclusion, I leave you with this thought. The process industry stands at a crossroads. We can choose the path of neglect, a path fraught with danger, uncertainty, and colossal losses. Or we can choose the path of functional safety, a path that leads to prosperity, resilience, and a brighter, safer future.

The choice is ours to make. Thank you.