This post is sponsored by AcuTech Consulting Group and reflects their views, opinions, and insights.
Many companies use the term operational excellence (OE) to evaluate key areas of their business. However, not all companies incorporate process safety management (PSM) into this equation. I had a chance to catch up with David Moore, CEO of AcuTech Consulting Group, to talk about why smart companies know that PSM is a key component of OE.
AcuTech will be participating in the upcoming AIChE Spring Meeting & 17th Global Congress on Process Safety, which will take place virtually from April 19–23. Register for their workshop, Mechanical Integrity – The PSM Element That Still Bedevils, to gain valuable insights on management systems to address all of the sub-elements of mechanical integrity and register for the full meeting here.
Can you share your definition of OE?
OE is a broadly defined set of corporate initiatives to achieve high performance levels in key areas of the business through efficient, reliable, and agile operations to achieve optimal profitability for the assets, processes, and people. Professor Deming developed the principles of the Plan:Do:Check:Act business cycle which is critical to the implementation of OE. Many companies have adopted some form of OE in order to develop an integrated model of management to enhance their performance and sustainability.
How does PSM fit into that definition?
Smart companies understand that OE is not only about enhancing profitability; it is founded in safe, sustainable, and secure operations. It is quite simple – a highly profitable company in the process industries can quickly be in jeopardy if process safety management is not a key element of the foundation of the business. Placing high importance on PSM to a level of excellence vs minimal compliance has many benefits in risk, reliability, and performance improvements.
What are some key components of PSM that companies can use to improve their operations?
All elements of PSM fit into OE. The best companies hold high expectations for process safety as a leading objective for the company, and management is fully supportive and demanding of this performance level. It is impossible to operate complex processes without a fully functioning PSM model, especially for asset integrity, hazard and risk assessments, auditing, management reviews of performance, competency, and other key elements.
Do you see companies regularly incorporating PSM when they evaluate their operations?
Globally there is a wide range of companies’ process safety and OE schemes, and some are leaders who fully understand the importance of PSM and place it equally in the OE models as a key objective. Others give higher weighting to operating performance and have minimum programs or are just learning about the benefits of process safety. We believe that companies that include process safety as a key element will have better safety and reliability performance leading to more sustainable companies and more competitiveness.
David A. Moore
David Moore is the President and CEO of the AcuTech Consulting Group, a process safety, security, and emergency management consulting firm based in McLean, VA.
Disclosure: This post is sponsored by AcuTech Consulting Group and reflects their views, opinions, and insights.