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26.05.2014
Loss Prevention Engineering involves the engineering required to help us prevent accidental, undesired loss-producing incidents.
However, because loss prevention engineering is such a diverse and broadly demanding application of engineering and scientific principles and even if we limit the subject to preventing accidental loss incidents (such as automobile crashes, sporting accidents, etc.), we would still never be able to cover all the relevant and important topics that would be needed in just one book.
A diverse and detailed publication like this would not be possible without the input of many people of a multitude of experiences, languages, countries of origin, and industrial backgrounds. Several industries around the world apply a multifaceted health, environmental, and safety (HES) program approach in reducing occupational HES incidents.
Taking a look at the oil and gas industry for illustration purposes, statistics within the industry across the globe clearly show a consistent decline of total recordable incident rate (TRIR) from 2002 to 2009. To have an appreciation of loss prevention engineering management systems, a look at some relevant historical events that have helped shape the approach of industries to loss prevention is necessary. Process safety incident occurrences go far beyond all of the above-mentioned incidents and other similar high-profile process safety incidents well known to the public. Reacting to process safety incidents, the US government put in place laws that led to the creation of the Risk Management Program (RMP) in 1999, being managed by the United States Environmental Protection Agency (EPA).
Similarly to the above, the European Union also maintains a database for all process-related incidents a€“ the Major Accident Reporting System (MARS) database (Nivolianitou, Konstandinidou, and Michalis, 2006). Considering past incident occurrences and the outcome of the analysis of historical data indifferent studies, there is still a great need for industries to continue to work at initiatives that will guarantee the success achieved in the occupational safety, health, and environment field. A schematic of the basic management system standards of the International Organization for Standardization (ISO) is shown in Figure 1.3.
Plan a€“ Establish objectives and make plans (analyze your organization's situation, establish your overall objectives, and set your interim targets, and develop plans to achieve them).
Act a€“ Correct and improve your plans and how you put them into practice (correct and learn from your mistakes to improve your plans in order to achieve better results next time). Within any establishment, the HES function with support of the executive leadership will need to define and establish a fit-for-purpose management system that is based on the basic model discussed above.
Engineering in loose terms will be the utilization of mathematical, socioeconomic, practicability, and scientific expertise to design and build functional structures that allow for the enhancement of quality of life. Considering the industry at large, there are huge upsides to having functional loss prevention management systems in place; this allows companies to understand their risks and proactively mitigate their exposures. Regarding cost savings, as a case study for illustration purposes, we can refer to a publication by the US National Highway Traffic Safety Administration (NHTSA), an arm of the US Department of Transportation, on the topic a€?The Economic Burden of Traffic Crashes on Employersa€? (NHTSA, 2003). The NHTSA estimated that the potential savings for employers could be up to $15 billion annually if these two root causes of crashes are eliminated. We now change gear to focus on the insurance industry and their perception of a customer with adequate safety training being less of a liability, hence reducing insurance premiums. As indicated by the sample size involved, all but one insurance company offers a discount of one form or another whether or not a specific percentage was stipulated. Regardless of the industry, it should be clear at this point that having a functional loss prevention engineering program could influence the bottom line of a company by minimizing financial losses. Considering the range and complexity of loss prevention engineering processes and tools, it becomes an exceptional candidate for the implementation of management systems to deliver success. A schematic diagram that shows the six basic stages of the loss prevention engineering management system cycle is presented in Figure 1.4.
Figure 1.4 depicts a system with a scope that goes beyond traditional loss prevention engineering which focuses more on the technical part of HES. Executives and top leadership managerial teams are responsible for setting precise HES visions that offer clarity.
Prevent injury and illness and pursue improvements in safety and health to achieve industry leadership.
Attain industry leadership in environmental stewardship; operate with minimal environmental footprint. The set HES vision and objectives will form the foundation for all other tools and processes. Set HES objectives are only as good as the available enabling tools, supporting processes, and competent workforce for implementation. The above organizational structure is generic enough and HES positions can go from simple to more complex, as shown in the schematic on the right in Figure 1.5, depending on the needs of the organization (which may even be much more complex if needed). Following his election as an MSP, he became SNP Business Convenor Chairman of the Party), responsible for chairing Conference, the National Executive and the management and administration of the party.
Elected to Renfrewshire Council in 1999 at the age of 21 he was the youngest male Councillor in Scotland at the time. Elma Murray is currently the Chair of the Society of Local Authority Chief Executives (SOLACE) in Scotland. Elma has a strong interest in change and how to work effectively across public sector boundaries.In her spare time Elma enjoys skiing, walking and travelling.
Rosemary Agnew was appointed as Scottish Information Commissioner on 1 May 2012 for a fixed term of six years.
Rosemary holds a Masters in Business Administration (dist) from Manchester Business School. As Scottish Information Commissioner, Rosemary is responsible for the enforcement and promotion of Scotland's freedom of information law. He is a graduate of Glasgow School of Art and has a post graduate qualification in community education. He advises a wide range of public sector clients and those engaging with the public sector on all aspects of procurement law (both contentious and non-contentious), corporate structuring and collaborations, contracting and grant matters, public administrative law, governance and state aid.
Robin's background also includes significant experience in advising clients on European law, competition law and regulatory law.
He also advises a large number of charities and third sector clients and those engaging with the third sector in relation to: charity law and regulation (including advising on regulatory investigations), governance, formation and structuring, contracting and community renewables. Richard has extensive public sector management experience initially working with both Sheffield City Council and Harrogate Borough Council where he had the opportunity to be involved in the development and delivery of international events such as the World Student Games, whilst also experiencing the changing landscape of local government Leisure and Sport Services within a Compulsive Competitive Tendering environment.
In 2000, he moved to Scotland and joined Dumfries and Galloway Council where he now has a wider portfolio responsibility for a range of Community Services. Richard is committed to continuing professional development and has recently completed a post graduate qualification in Organisational Development and Leadership.
On a personal level, Richard is married and has two children, his daughter is undertaking a degree in Dance at the Performing Arts Studio Scotland and his son attends Northwood School, Lake Placid, USA on a Sports Scholarship programme.


As Chief Executive and head of paid service in the council he is responsible for carrying out the agreed policies of the council and the overall management of council services. Nevertheless, authors, editors, and publisher do not warrant the information contained in these books, including this book, to be free of errors. No part of this book may be reproduced in any form a€” by photoprinting, microfilm, or any other means a€” nor transmitted or translated into a machine language without written permission from the publishers. It is a diverse application of engineering that can call upon every engineering discipline and many other scientific and social science disciplines as well as just about every aspect of industrial life. So, we have chosen to cover the topics relating to engineering industrial processes to prevent or reduce loss from accidental and undesired incidents.
Our authors hail from nine different countries, represent nearly 20 different industry categories, and have an average of about 20 years of experience in their fields. Arguably, it is conventional wisdom within most industries that not a single safety or environmental or health process or tool has been proven to act independently to reduce or eliminate workplace incidents directly.
Figure 1.1 represents the data across 102 countries where member companies have operations (OGP, 2010). The 1984 Union Carbide Bhopal gas leak disaster (at a pesticide plant in India) remains one of the major industrial catastrophes that have played a role in looking beyond loss prevention from a mere occupational health and safety perspective.
It is important to remember that process safety incidents include the release of hazardous materials from leaks within systems, spills, equipment malfunctions that result from exceeding design temperatures and pressures, system integrity issues that include corrosion, metal fatigue, and other similar conditions.
This program required process industries to log their facility information and incident history, incident consequences, and preventive programs that have been introduced as a result of the incidents. A report prepared by Pitblado in 2004 indicated that the outcome of the DNV Energy examination of the data in the MARS database showed no trends; however, the data set showed a steady average level of incident severity.
Engineering processes and controls to keep the plants inherently safe will be an area for continuous improvement and focus to steer industry along this path. Process safety programs specifically focus on the design and engineering of facilities, hazard assessments, management of change, inspection, testing, and maintenance of equipment, effective alarms, effective process control, procedures, training of personnel, and human factors. The reward for having such systems backed up with data showing its success is passed back to the company in the form of cost savings from reduced incidents and by insurers offering lower premiums.
This could be achieved by implementing motor vehicle safety programs that include a€?drug and alcohol policiesa€? forbidding operation of vehicles while under the influence, and a policy governing the proper use of seat belts by employees during commuting. This is not an uncommon practice in the insurance industry beyond motorcycle or motor vehicle insurance.
In line with industry practice, management systems for loss prevention will be made up of the overarching cycle of defined stages, hinged around leadership commitment as the most important factor. It will be implemented with equal consideration to building a safety culture within the enterprise that believes that all incidents are preventable. Management systems have been known to fail for lack of leadership support and the absence of providing visibility to the system by leadership. While recognizing the different degrees of responsibility and influence of individuals who make up the strata of leadership within any enterprise, every leader ranging from executives to front-line supervisors have unique roles to play in running the management system. The HES vision should support the company's philosophy and be written such that every employee could be held accountable for its execution at every level. This will be needed to break the vision further into more executable and measurable umbrella statements that summarizes all pillars that support the vision. Depending on the industry of interest, a benchmarking exercise will be very beneficial in establishing existing industry approaches, checking the industry pulse, and projected future direction prior to setting a vision. All leaders will always use the vision as a primer for discussions or workforce engagements to ensure that the workforce understands that these expressed values are important to their leadership. Success relies on leadership demonstrating commitment by providing adequate resources to support the loss prevention management system. The questions to ask in order to test criticality of any HES process is a€?What impact will the absence of the process have on meeting set HES objectives?a€? Depending on the immediate need of the organization, processes should be ranked according to their criticality to the success of the business objectives; ranked high, medium, or low risk. The HES defined positions along with the support of Subject Matter Experts (SMEs) will support process implementation (Table 1.2) and manage HES human resources and workforce HES competency development down the chain.
He won three successive ward elections, to become Leader of Renfrewshire Council in May 2007, taking the SNP from opposition to lead the administration for the first time. Prior to being appointed Chief Executive of North Ayrshire Council in September 2009, Elma held a number of senior positions at Strathclyde Police, North Ayrshire Council and Glasgow City Council.Her professional background is in Information Technology but after 30 years in local government she has a wide-ranging knowledge of local government services. She previously held the posts of Chief Executive of the Scottish Legal Complaints Commission and Assistant Ombudsman at the Local Government Ombudsman, and so is familiar with operating within a regulatory environment. She has a keen interest in developing a framework of continuous improvement of public authority FOI practice during her term of office.
Since then he has held various positions, including Convenor of the Airdrie Local Area Partnership and Vice Chair of Strathclyde Partnership for Transport. He has also been fortunate to have had the opportunity to lead on a number of significant Leisure and Sport capital development projects.
More recently he has been responsible for developing a new Dumfries and Galloway joint Health and Wellbeing Unit in partnership with the NHS and he is also the Council’s lead Officer in relation to the Community Safety agenda. He is the principal policy and management adviser to the council, chairs the Corporate Management team and is the first point of contact with the Scottish Government, regulatory bodies and partner public bodies, such as NHS Forth Valley, Police Scotland, University of Stirling, Forth Valley College and Loch Lomond and the Trossachs National Park. Readers are advised to keep in mind that statements, data, illustrations, procedural details or other items may inadvertently be inaccurate.
It is generally assumed that, by definition, we do not want to experience this type of loss. It is the expectation of our authors to present to you, our readers, a thorough collection and summary of what is known in industry about preventing work related injuries and other undesired, accidental loss incidents. This book would not have been possible without them and I thank all of them for their significant and valuable contributions.
To ensure that workplace incident prevention is achieved and sustained, an optimal mix of HES tools and processes needs to be implemented and managed (Shakioye and Haight, 2010).
A process failure in this incident resulted in a leak of methyl isocyanate gas and other chemicals from the plant, causing undue exposure of thousands of people (Jackson Browning Report; Browning, 1993). In essence, several less severe process safety incidents occur every day across the industry with less media attention. Based on Lord Cullens recommendation, a leak database was created in the United Kingdom to record the count of leaks of process fluids (Pitblado, 2011). Having said this; we need to understand that to reach an incident and injury-free state, personal safety, process safety, and environmental issues need to be well understood.


Management systems ensure that leadership has the needed framework to cascade their vision across the enterprise and it also establishes a platform for accountability at different strata of the organizational hierarchy. To ensure inherently safe design, construction, and operation, consideration of an engineering approach certainly offers the most logical course of action. Once our loss prevention system fails, then it becomes a case of loss control which may be out of range however planned for during the design phase. Installation of vehicle monitoring systems on company-owned vehicles to manage drivers' attitude on the roads will add some value to motor vehicle safety in addition to helping with accountability. The general theory is that insurance premiums are significantly higher for clients who show operationally higher risks which may introduce some level of ambiguity to the probability of an event occurring than those with inherently safer operations (Kunreuther et al., 1995).
Leaders must take full ownership and set the expectations by demonstrating commitment through providing the right level of support and resources adequate for its full implementation.
The idea is to orchestrate the interactions of people with people and also the interactions of people with machines and the environment, ensuring alignment with incident-free strategic visions and objectives set by the corporate executives. Public perception and confidence need to be considered in the HES vision statement considering the potential for the company's interaction with the public during the life of the operation.
Personnel support can then be appropriated accordingly depending on availability, with priority given to the high and medium risk processes. Her extensive public sector experience (which has ranged from policy and business development to complaints handling) includes managing authority compliance with freedom of information laws. She considers that the statutory obligation of FOI can also be an enabler for authorities in terms of both effectiveness and transparency: FOI is the key to many rights and freedoms in our society and also a significant driver to good public authority practice.
In response to that, the authors of this book seek to inform the engineering community about what must be considered when designing, operating and maintaining systems and processes so that accidental and undesired failures or loss-producing incidents (including human injury) are less likely to occur or, if they do, that they result in lesser consequences. Some of our readers will already be well-versed in such fields as safety engineering, process safety management, fire protection engineering, industrial hygiene, or environmental engineering, but it is expected that not many engineers are well-versed in all of these fields. I would also like to thank the reviewers of our chapters as it is an important aspect of this book to ensure that you, our readers, get more than just the opinions of one author. Another major process-related incident was the March 2005 British Petroleum Texas City Refinery explosion, which was caused by the ignition of a hydrocarbon vapor cloud. A decision was made by the government to restrict access to the data for national security reasons, the main reason being that the RMP database contains details of potential consequences of hypothetical worst-case scenarios of accidental releases. Figure 1.2 shows a plot of the analysis of the leak database, which shows a slight decline in major leaks whereas trends for other minor leaks do not clearly show a decline. Management systems that support processes, based on facts and not just mere intuition, need to be put in place.
Having said this, a management system is incomplete without having the robustness to allow for continuous improvement of the organization's policies, procedures, and processes. The root causes of the crashes reported in the study were primarily driving under the influence of alcohol and unrestrained driving (primarily non-use of seatbelts). These solutions may sound simplistic; the challenge to the safety policies is the implementation, which can only be achieved by the managers leading by example and holding employees accountable.
Table 1.1 is a direct extract from the study, showing a market survey of some major insurance players in the United States. We rely on the human element for design, preventive maintenance, following standard operating procedures while incorporating safe work practices, reacting and responding to emergencies, and so on a€“ the list can be endless.
Vision must be communicated to the workforce using all avenues by leaders, including written statements and personal communications for the workforce to be convinced and hence buy in (Kouzes and Posner, 1987). Corporate visions of many companies are publicly available for reference, especially on the Internet; this certainly provides an opportunity to understand what minimum goals you need to set. He was also previously chair of the Paisley Vision Board and Renfrewshire's Fairtrade Steering Group. She has first-hand experience of leading the development of an open culture in a Scottish public authority essential, in her view, to achieving FOI compliance. Therefore, with the input of nearly 40 authors, and since many find themselves to be in need of information on any and all of these topic areas, the book encompasses parts of all of them. You will find that the material is widely accepted and is not just a a€?here's how we do things at our planta€?-type book.
Such complexity requires a systemic management of implemented HES programs to ensure that the programs are sustained and continuous improvements in the form of learnings are captured and incorporated into existing practices.
The vapor cloud was created from a series of system malfunctions that eventually led to liquid hydrocarbon overfilling the blowdown drum and stack, then spilling over to the ground, creating the flammable vapor (The Baker Panel, 2007).
With the agreement of the EPA, the Wharton School (University of Pennsylvania) conducted a preliminary analysis of historical process-related incident data from the RMP (non-security sensitive data). The book is grouped into major topic areas of similar subject matter to lend cohesiveness to the information. All engineers are charged with a responsibility to protect people, equipment, facilities and operations and therefore, it is our hope that in reading this book you will learn something new and that you will enhance your organization's efforts to protect their operations and their people from injuries and other loss-producing incidents. The Whartson School analyzed 10 years of process safety data, and identified only small improvements which may have been due to changes in the reporting attitude of companies rather than actual performance (Kleindorfer et al., 2007).
Our authors present a number of case studies and exercises that will help our readers to put the principles and theories of loss prevention engineering into proper day-to-day perspective. More recently, the April 2010 British Petroleum Deepwater blowout incident (Macondo well incident) was largely due to a succession of interrelated well design, construction, and temporary abandonment decisions that compromised the integrity of the well and compounded the risk of its failure (Transocean, 2010).
It is also the expectation of the authors that our readers will find this book to be a necessity any time each of you are tasked with solving an engineering problem that could lead to a loss-producing incident, any time you find yourself assigned to a job in which loss prevention engineering is part of the defined responsibilities or any time you want to learn about loss prevention engineering as an occupation or field of study.
This incident resulted in an explosion with 11 fatalities and an environmental disaster off the Gulf Coast of the United States. From several investigation reviews, and if history is anything to go by, the common theme of the root causes in the majority of these incidents was management system-related deficiencies, particularly in the area of process safety. It is an excellent and thorough reference handbook that we hope you find useful in the everyday dispatch of your industrial duties.



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