Machine safety: Executives balance risks, profits

Industrial executives are engaged more than ever in operational risk oversight. This certainly includes machine safety.

05/16/2013


Given our current economic environment, and particularly in industry, it’s probably not a big surprise that executives are engaged more than ever in operational risk oversight. Quickly reacting to shifts in market demands, adverse events and the ever changing governmental regulatory and compliance requirements is a must. Is machine safety in their cross hairs?

 

You bet! I recently read a recent study completed by the Aberdeen Group titled: Operational Risk Management: Getting Ahead of the Risk Curve, November 2012. In this study Aberdeen evaluated 119 executives from various companies and found that “best in class” companies established a framework to facilitate sustainable programs throughout the organization to identify risks, implement corrective procedures and preventive procedures.

 

So, how does this impact machine safety? Well, it seems that of the four major pressures driving their focus, there were eight influences impacting those financial risks. And, that there was no one single influence that was the most dominant. These eight influences are:

  • Failure of Critical Assets
  • Non-Compliance (OSHA, FDA, NERC, etc.)
  • Environmental Impact (spills, leaks, etc.)
  • Financial Risks
  • Logistics Risks
  • Supplier Quality
  • Environmental Health and Safety (EH&S)
  • Supplier Risks (re-evaluate portfolio of contract suppliers)

 

As an industry expert in machine safety I know that the above influences highlighted in yellow are heavily impacted by how effective a companies’ safety culture is within the business. For example, unplanned machine downtime and OEE (Overall Equipment Effectiveness) are two factors of effective machine safety and they directly contribute to “Failure of Critical Assets.” Both “Non-Compliance” to regulations and standards and “Environmental Impacts” of spills or leaks are major expenses of in-effective machine safety which go directly to the bottom line. And, “EH&S” issues in employee morale translate directly to productivity performance which also impacts the bottom line.

 

In my opinion, no wonder executives are balancing for profits focused at Operational Risk Management including machine safety.

 

J.B. Titus, CFSE

Has this presented you with any new perspectives? Add your comments or thoughts to the discussion by submitting your ideas, experiences, and challenges in the comments section below.

 

Related articles:

Machine Safety: Managing operational risk

Aberdeen Group - “Operational Risk Management”, November 2012

The term Operational Risk Management (ORM) is defined as …..Wikipedia

 

Contact: http://www.jbtitus.com for “Solutions for Machine Safety”.



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Save energy with automation; Process control system upgrades; Dispelling controll myths; Time-sensitive networking; Control system integration; Road to IANA
Additive manufacturing advancements; Machine vision enhances robotics; Fieldbus evolution; Process safety; Advice from System Integrators of the Year; Road to IANA
Salary and career survey: Benchmarks and advice; Designing controls; Remote data collection, historians; Control valve advances; Hannover Messe; Control Engineering International
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
click me