This presentation was for the Operations Management Cluster "Better SAFE Than Sorry" Safety Forum administered by the Operations Class M08, First Semester 2011. By Mr. Raul Mercado, President/CEO of LAJMAR Management & Technology Resources, Inc.

1. RISK ENGINEERING
& MANAGEMENT
CAREER OPPORTUNITIES for PRACTICING
ENGINEERS & MANAGERS
A Presentation for the
ATENEO GRADUATE SCHOOL of BUSINESS FORUM
“Better Safe than Sorry”
By
RAUL D. MERCADO. PME

2. LAJMAR Management & Technology Resources, Inc.
Copyright Oct.. 2011
AGENDA
1. What is Safety
2. Safety in the Philippines
3. Laws and Regulations
4. Current state of safety in the
Philippines

3. LAJMAR Management & Technology Resources, Inc.
Copyright Oct.. 2011
WHAT IS SAFETY?

4. LAJMAR Management & Technology Resources, Inc.
Copyright Nov. 2010
REASONS FOR MORE FOCUS
2005 – Buncefield Terminal Explosion, London, England

5. LAJMAR Management & Technology Resources, Inc.
Copyright Nov. 2010
REASONS FOR MORE FOCUS
2005 – Buncefield Terminal Explosion, London, England
o Fires engulfed
23 large storage
tanks
o Off-site damage
estimates (from
insurance claims)
totaled one billion
English pounds

6. LAJMAR Management & Technology Resources, Inc.
Copyright Nov. 2010
REASONS FOR MORE FOCUS
Source: http://www.eoearth.org/article/Deepwater_Horizon_oil_spill#gen2
2010 – Deepwater Horizon Oil Rig Explosion, Gulf of Mexico
o By June 9, BP stock had
lost close to half its value,
more than $82 billion, in the
seven weeks since the spill
started.
o Cost of the response to
September 29 amounted to
approximately $11.2 billion,
including the cost of the spill
response, containment, relief
well drilling, static kill and
cementing, grants to the Gulf
states, claims paid and
federal costs.

7. LAJMAR Management & Technology Resources, Inc.
Copyright Nov. 2010
REASONS FOR MORE FOCUS
Source: http://www.eoearth.org/article/Deepwater_Horizon_oil_spill#gen2
2010 – Deepwater Horizon Oil Rig Explosion, Gulf of Mexico
o On May 12, 2010, BP
released a thirty-second video
of oil coming out of the end of
the broken riser—a crucial
piece of data
o Dr. Steven Wereley, a
Mechanical Engineer at
Purdue University and expert
in fluid mechanics, estimated
that the total flux from the end
of the riser was 72,179
bbls/day (±20%)

8. LAJMAR Management & Technology Resources, Inc.
Copyright Nov. 2010
REASONS FOR MORE FOCUS
Source: http://www.eoearth.org/article/Deepwater_Horizon_oil_spill#gen2
2010 – Deepwater Horizon Oil Rig Explosion, Gulf of Mexico

9. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
How Accidents Happen?
Source: CCPS Guidelines for Hazard Evaluation Procedures, 1992
P
WORKER R
O
TECHNOLOGY/ D
ENVIRONMENT PROCEDURES U
PROCESS C
T
WORK ENVIRONMENT FRAMEWORK

10. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
COMPETENCY ORIENTED HAZARDS
• Technical Attitude
or Behavior
knowledge
based
• Attitude or
behavior
Technical
based Skill
Knowledge
• Skill based

11. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
ENVIRONMENTORIENTED HAZARDS
CHEMICAL
• TOXICITY
– Dose / Response
– TLV
– IDLH
• FLAMMABILITY
– LEL

12. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
ENVIRONMENTORIENTED HAZARDS
CHEMICAL Common Oxidizing Groups
Chemical Group Chemical Formula
peroxides O2-2
• REACTIVITY nitrates NO3-
nitrites NO2-
– Water perchlorates ClO4-
chlorates ClO3-
chlorites ClO2-
– Oxidizers
hypochlorites ClO-
dichromates Cr2O7-2
permanganates MnO4-
persulfates S2O8-2

13. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
ENVIRONMENTORIENTED HAZARDS
PHYSICAL
• Ionizing & Non-Ionizing Radiation /
ELF/LASER
• Electrical
• Extreme Temperature
• Noise (TLV: 90 dB)

14. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
ENVIRONMENTORIENTED HAZARDS
ERGONOMIC
Repetitive Stress Injury
– Carpal Tunnel Syndrome (occurs in the wrist,
where friction on the nerve passing through the
wrist carpals causes inflammation)
– Tendonitis (swelling of the soft tissue around
joints)
– Tenosynovitis (applies to both the wrist and the
fingers)

15. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
ENVIRONMENTORIENTED HAZARDS
BIOLOGICAL
• Micro Organism
• Infection

16. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
EQUIPMENT or PROCESS HAZARDS
PROCESS Hazards
Are those hazards which are caused by
engineering design which inadequately address
risks attributed to the hazardous properties of
substances of chemicals used, poor operation
or malfunction of the processes used to convert
raw materials into finished products, which may
lead to the unplanned release of hazardous
materials

17. LAJMAR Management & Technology Resources, Inc.
Copyright Nov. 2010
PROCESS RELATED INCIDENTS
1984 – Mexico City, Mexico –Explosion
o 300 fatalities
(mostly offsite)
o $20M
damages

18. LAJMAR Management & Technology Resources, Inc.
Copyright Oct.. 2011
PROCESS RELATED INCIDENTS
1984 – Bhopal, India – Toxic Material Released
o 2,500 immediate
fatalities; 20,000+
total
o Many other offsite
injuries
o More than $600
Million in settlement
cost

19. LAJMAR Management & Technology Resources, Inc.
Copyright Nov. 2010
PROCESS RELATED ACCIDENTS
1988 – Norco, LA – Explosion
o7 onsite fatalities,
42 injured
o $400M+
damages

20. LAJMAR Management & Technology Resources, Inc.
COMMUNITY EMERGENCY
RESPONSE
PLANT EMERGENCY
Copyright Oct. 2011
RESPONSE
DIRECTION OF CATASTROPHIC ACCIDENT TRIGGERS
AUTOMATIC ESD
(AUTO SHUTDOWN DEVICES)
PROCESS RISK MITIGATION
PHYSICAL PROTECTION
(RELIEF DEVICES)
CRITICAL ALARMS
& MANUAL SUPERVISION
INADEQUATE RISK
MITIGATOR
FRAMEWORK
HUMAN ERROR
BASIC CONTROL &
PROCESS ALARM
PLANT DESIGN

21. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
PROCESS RISK MITIGATION
FRAMEWORK

22. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
PROCESS HAZARD ANALYSIS
• HAZOP STUDY
• FAILURE MODE & EFFECT ANALYSIS
• FAULT TREE / EVENT TREE ANALYSIS
• WHAT IF/CHECKLIST
• EVENT & CAUSAL FACTORS ANALYSIS
• LAYERS OF PROTECTION ANALYSIS
• DISPERSION MODELING
• BLAST OVER PRESSURE DESIGN

23. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
PROCESS SAFETY
PROCESS SAFETY
Is the control of hazards which are caused by
poor operation or malfunction of the processes
used to convert raw materials into finished
products, which may lead to the unplanned
release of hazardous materials

24. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
PROCESS SAFETY MANAGEMENT
PROCESS SAFETY MANAGEMENT
Is the strategic identification, evaluation,
assessment and control of hazards which are
caused by poor operation or malfunction of the
processes used to convert raw materials into
finished products, which may lead to the
unplanned release of hazardous materials

25. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
PROCESS SAFETY MANAGEMENT
SYSTEM ELEMENTS
I. PROCESS SAFETY INFORMATION
II. EMPLOYEE INVOLVEMENT (ENGAGEMENT)
III. PROCESS HAZARD ANALYSIS
IV. MANAGEMENT of CHANGE
V. OPERATING PROCEDURES
VI. SAFE WORK PRACTICES
VII. EMPLOYEE TRAINING & INFORMATION
VIII. CONTRACTOR SAFETY
IX. PRE-START UP SAFETY REVIEW
X. MECHANICAL INTEGRITY
XI. EMERGENCY PLANNING, PREPAREDNESS & RESPONSE
XII. COMPLIANCE AUDIT
XIII. PROCESS INCIDENT INVESTIGATION
XIV. TRADE SECRETS

26. LAJMAR Management & Technology Resources, Inc.
RISK ASSESSMENT OF
FUNCTIONALITY & INTEGRITY
R.A.F.I.

27. LAJMAR Management & Technology Resources, Inc.
Operations,
Maintenance &
Q-Inspection Data,
Incidents,
Challenges
The R.A.F.I.
Committee
Operation & Engineering
Maintenance Management
RCM RBI SafeCo
Focal Point Focal Point Focal Point
Integrated Reliability-Integrity-Safeguarding
(IRIS)
Web Studio System
Proactive
Operations-Maintenance
Review
-Inspection Strategies Effectiveness
Safe Operation
Availability
Departmental Interface
Execution Reliability
of
Proactive Tasks
Overview of the Functional Process

28. LAJMAR Management & Technology Resources, Inc.
The Standard Elements of R.A.F.I.
1. Reliability Centered Maintenance RCM – method for
optimizing the maintenance program, i.e., structured,
focused and economical.
2. Risk Based Inspection RBI – method for optimizing the
inspection program, sustaining the integrity of the pressure
envelope.
3. Process Safeguarding & Control SafeCo – method for
classification and implementation of instrumented process
safeguarding & control, i.e., safe, cost-effective, design-
consistent strategy.

29. The Standard Elements of R.A.F.I.
RBI
RCM SafeCo
RAFI

30. LAJMAR Management & Technology Resources, Inc.
R.A.F.I. Process Overview
Base Data Management
Criticality Assessment
Task Priority and Planning
Task Execution
Review and Update

31. LAJMAR Management & Technology Resources, Inc.
Major Benefits Delivered by R.A.F.I.
> structured, holistic and industry-best system
management program to date
> focused training, progressively applied to develop
expertise
> professional challenges to current practices to
improve production delivery
> optimized value of process investment costs
> business sustainability and better return of
investment
> productive business enterprise culture
> pioneering foundations to develop local industry
standard

32. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
RISK in the CONCEPT of SAFETY
RISK is the potential that a chosen action or
activity (including the choice of inaction) will
lead to a loss (an undesirable outcome). The
notion implies that a choice having an influence
on the outcome exists (or existed). Potential
losses themselves may also be called "risks".
Almost any human endeavour carries some risk,
but some are much more risky than others.

33. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
RISK in the CONCEPT of SAFETY
RISK = (Probability of Accident Occurring) x (expected
loss if accident occur)
Risk: Combination of the likelihood of an occurrence of a hazardous
event or exposure(s) and the severity of injury or ill health that
can be caused by the event or exposure(s)

34. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
RISK in the CONCEPT of SAFETY
RISK MANAGEMENT is the identification,
assessment, and prioritization of risks (defined
in ISO 31000 as the effect of uncertainty on
objectives, whether positive or negative)
followed by coordinated and economical
application of resources to minimize, monitor,
and control the probability and/or impact of
unfortunate events or to maximize the
realization of opportunities.

35. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
RISK vs. SAFETY
RISK or SAFETY ENGINEERING is the application
of engineering analysis & methodologies to risk
management.
• Analysis technique could either be quantitative
or qualitative.

36. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
RISK in the CONCEPT of SAFETY
Safety is the state of being "safe" (from
French sauf), the condition of being
protected against physical, social,
spiritual, financial, political, emotional,
occupational, psychological, educational
or other types or consequences of failure,
damage, error, accidents, harm or any
other event which could be considered
non-desirable.

37. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
RISK in the CONCEPT of SAFETY
SAFETY can also be defined to be the
control of recognized hazards to achieve
an acceptable level of risk. This can take
the form of being protected from the
event or from exposure to something that
causes health or economical losses. It can
include protection of people or of
possessions.

38. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
RISK in the CONCEPT of SAFETY
SAFETY Management is the application of
management processes including
anticipation, identification, evaluation,
analysis & control of recognized hazards
to achieve an acceptable level of risk.

39. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
RISK MANAGEMENT STRUCTURE
CORP.
GOALS
BUSINESS
CONTINUITY
STRATEGIES
EMERGENCY & DISASTER
RESPONSE PLAN
WORK INSTRUCTION PROCEDURES
RESOURCE LISTS /RECORDS /
REFERENCE DRAWINGS/ FORMS / GUIDES/MANUALS

40. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
RISK MANAGEMENT PROCESS
REFERENCE: BSI OHSAS 18001 MANAGEMENT MODEL

41. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
RISK MANAGEMENT CYCLE
REFERENCE: ILO OSH MANAGEMENT FRAMEWORK

42. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
JOURNEY TOWARDS EXCELLENCE
EXCELLENCE EFQM
Continuous
Improvement
A tough, stiff EFFICIENT TQM
climb and littered with
“potholes” of doubt,
confusion and Continuous
misunderstanding. Improvement
But as we inch ourselves upward,
our IMS is the wedge that
prevents us from losing our gains. EFFECTIVE ISO 9001

43. LAJMAR Management & Technology Resources, Inc.
Copyright Oct. 2011
HISTORY OF SAFETY MOVEMENT
RECORDED CHRONOLOGY OF SAFETY ACTIVITIES IN HISTORY

44. STATUTES/ STDS of SAFETY in the
PHILIPPINES
• The existing Philippine OSH standard was first
approved for implementation in 1978 and had
first amendment in 1989. It provides general
basic specifications for safe work practices in
the manufacturing and process industry
sectors.

45. OTHER RELATED STDS to SAFETY in
the PHILIPPINES
• PHILIPPINE OCCUPATIONAL SAFETY AND HEALTH
STANDARD
• ENVIRONMENTAL CODES OF THE PHILIPPINES
• MECHANICAL ENGINEERING CODE (R.A. 8495)
• NATIONAL STRUCTURAL CODE of the PHIL.(
• NATIONAL BUILDING CODE
• PHILIPPINE ELECTRICAL CODE
• SANITATION CODE OF THE PHILIPPINES
• FIRE CODE OF THE PHILIPPINES

46. SAFETY STDS which are yet to be
established the PHILIPPINES
• PROCESS SAFETY MANAGEMENT for
HAZARDOUS INDUSTRIES
• ROAD SAFETY STANDARD
• INTEGRATED MOTOR VEHICLE SAFETY
STANDARD
• EMERGENCY RESPONSE & SAFETY FOR HIGH
RISE BUILDINGS
• INTEGRATION OF EMERGENCY
PREPAREDNESS in URBAN PLANNING
• NANO TECHNOLOGY SAFETY

47. NANO PARTICLES, AEROSOLS &
AGGLOMERATES
 NANO PARTICLES
 NANO AEROSOLS
 NANO THERMITE
 ENGINEERED NANO MATERIALS
• CARBON NANO TUBES (CNT)

48. NANO OBJECTS, AEROSOLS &
AGGLOMERATES
WHAT ARE NANO PARTICLES, AEROSOLS &
AGGLOMERATES
 NANO PARTICLES - with all three external
dimensions at the nanoscale
 AEROSOLS - is a collection of nanoparticles
suspended in a gas
 AGGLOMERATES -Nano-objects have the
pronounced tendency to agglomerate, thus forming
agglomerates of micrometer or millimeter sizes, for
instance in powders. These agglomerates can be
disintegrated again, for instance by powerful stirring,
as their component parts are bound by relatively
weak forces.

49. FOOD SAFETY in the PHILIPPINES
• There is no single coherent national policy that
imposes measures to protect food from
hazards as it moves along the food chain.
• But there are separate and interlinked guides
and regulations on food safety from different
agencies like Department of Trade & Industry,
Department of Health, Bureau of Food and
Drug (BFAD), Bureau of Product Standards,
Department of Agriculture (DA) – Bureau of
Agriculture and Fisheries Product Standards
(BAFPS)

50. FOOD SAFETY in the PHILIPPINES
• Among the international standardisation
initiatives that the Philippines participates in
are those being lead by the International
Organization for Standardization, Codex
Alimentarius Commission, Asia Pacific
Economic Cooperation (APEC), ASEAN
Consultative Committees on Standards and
Quality (ACCSQ) and Asian European Meeting.
• A National Codex Committee, chaired by the
Director of the Food Development Center of
the Department of Agriculture, represents the
country for Codex meetings on Standards for
Food Additives and Contaminants.

51. FOOD SAFETY in the PHILIPPINES
• Food standards are published as Philippine
National Standards following a standard
documentation format aligned with the ISO
documentation format.

52. FOOD SAFETY in the PHILIPPINES
• Existing food safety laws and subsequent
issuances covers only some aspects of the
food chain:
R.A. 8172 Asin Law, R.A. No. 9296 The Meat
Inspection Code of the Philippines, R.A No. 8976
Food Fortification Law, R.A. No. 8485 The Animal
Welfare Act, R.A. No. 8435 The Agriculture and
Fisheries Modernization Act, R.A. 7394 Consumer Act
of the Philippines, E.O. No. 175. Amendments to
Republic Act No. 3720, E.O. No. 851, Reorganizing
the Ministry of Health, P.D 1144 Creating the
Fertilizer and Pesticide Authority, R.A. No.3720 Food
Drug and Cosmetic Act, Republic Act 9711 Food and
Drug Administration Act and Republic Act 9997
National Commission on Muslim Filipinos Act.

53. FOOD SAFETY in the PHILIPPINES
• The main food safety agency, Food and Drug
Administration formerly the Bureau of Food
and Drug regulates processed food only. There
is no national guideline for the minimum
required facilities for food service
establishments such as restaurants, fast foods,
carinderias, canteens and homes and kitchens
that cater or hawk food on streets although
they are under the jurisdiction of LGUs as
mandated in the Local Government Code ( R.A
No. 7160). Also, among agencies concerned
with food safety, there are overlaps in function.
http://www.agham.org.ph/legislation/bills/authored/hb-3972-food-safety-act-of-2010.html

54. THE END
THANK YOU