PEI-QHSE-002-Hazards Identification and Risk Management Procedure.doc

QHSE MANUAL Document Control No.

HAZARD IDENTIFICATION AND RISK MANAGEMENT

PEI-QHSE-002Revision : 2Date Issued: March 2015

HEALTH, SAFETY & ENVIRONMENTAL PROCEDURES

HAZARD IDENTIFICATION AND

RISK MANAGEMENT PROCEDURE

PEI-QHSE-002

REVISIONS:

DATE REV. DESCRIPTION By Signature

5 Dec ‘08 A First issue

7 Feb ‘12 1 All procedure revised

March 2015 2 All Procedures Revised

@Prowell Energi 2015 Page 1




TABLE OF CONTENTS

1.0 PURPOSE 3

2.0 SCOPE 3

3.0 DEFENITONS 3

4.0 JOB SAFETY ANAYSIS 4

5.0 RISK ASSESSMENT 6

ATTACHMENT A HAZARD IDENTIFICATION

ATTACHMENT B RISK IDENTIFICATION

ATTACHMENT C JSA FORM

ATTACHMENT D RISK ASSESMENT FORM





1.0 PURPOSEThe purpose of this system is to establish and maintain a process and procedure;

To identify ongoing hazards in all PT Prowell Energi Indonesia operational activities. To assess and analyze the risk of those hazards. To provide and implement control measures to minimize the hazards to within tolerable or acceptable level.

2.0 SCOPEThe procedure covers PT Prowell Energi Indonesia core business activities, not only within the premise of PT Prowell, but also within client’s areas where PT Prowell is as-signed to have a workplace or facilities. The procedures set out two levels of risk analy-sis, namely Job Safety Analysis (JSA) and Risk Analysis or Risk Assessment (RA)

A JSA is carried out before a work starts by identifying hazards at basic steps of job tasks and providing control plans so that the job can be safely and efficiently executed.

Risk Assessments (RA) will be carried out on operations to assess the overall risk associated with a project or program. The RA would normally be done at the office level, after a site visit, when planning for the work program or project.

3.0 DEFENITIONSHazards Sources of danger with potential to do harm to personnel, assets





and environment

Hazard Identification Process of recognizing that a hazard exists and defining its characteristics

Risks Combination of the likelihood and consequence(s) of a specified hazardous event occurring

Risk Analysis or Risk Assessment

Overall process of estimating the magnitude of risk and deciding whether or not the risk is tolerable or acceptable

Risk Control Measures or tasks that need to be taken to minimize, reduce or eliminate the risk impact

Job Safety Analysis A work plan carried out before the work start by identifying the hazards in each job tasks and putting control plans to mitigate the hazards

Tolerable or Acceptable risk

Risk that has been reduced to a level that can be endured by the organization having regard to its legal obligations and its own HS Policy





4.0 JOB SAFETY ANALYSIS

4.1 Process and Procedure

JSA is a written work plan that can be used to prevent a hazard to become an accident by identifying potential hazards on each steps of the job task, before, during and after the job execution.

o Before the work start, gather the work team that is every one who will be involve on the work.

o Review, discuss and understand the overall operation or Job tasks that need to be carried out (What are we going to do and achieve?)

o Break the operation down into basic steps (How are we going to do it?)o Identify the potential hazards for each of the steps (How can we be

injured?)o Develop controls actions for each hazard (What are we going to do

about it?)o Use the provided JSA form to document all the hazards and their control

measureso File the JSA as reference for future similar work *

* Note: JSA can be used for a similar routine work, however, always ensure that there were no changes of condition at the work place, or other wise, the JSA may be used as reference only. These changes may be in the form of a new facility or equipment being brought in to work area, other team or personnel working in the same area, changes on the existing facilities, etc.

4.2 RESPONSIBILITIES

4.2.1 Operation Crew Supervisor or Chief Operator o Lead the crew to prepare JSA before the job start.o Ensure that control measures are complete and followed and

everyone in the area works safely.o Identify changes in the work area that could potentially create new

hazards to personnel, facility and environment.o Review the JSA prior to the job in the Toolbox meeting.

4.2.2 Crew Member o Actively participate in the JSA development by providing input on

potential hazards and its control measures.o Proactively report any hazard during the job execution.

4.2.3 HSE Officer o Provide JSA Training to the operation crew.o Review the JSA from time to time and provide input for improvement.





5.0 RISK ASSESSMENT

5.1 Process and Procedure

Risk Assessment would normally be done in the office level when planning for the work program is carried out. Team or Individual could do the assessment, but it is advised to be done by a Team, comprising of Operation Manager, Operation Supervisor, Operator involved, HSE representative and HSE advisor (if necessary).

The results of the assessments shall be recorded in a RISK ASSESSMENT form and must be agreed by the appropriate managers before they can be considered complete.

The Risk Assessment process comprises of 3 area of analysis; Hazard Identification, Risk evaluation and Risk Control, which covers the following major steps :o Identify the Hazards and existing safeguardso Assess severity of hazards effect or consequences o Assess the likelihood of occurrenceso Assess the risk ratingo Identify necessary additional control measureso Define action required to implement the additional control measure o Implement, monitor and review

Management should request that a workplace risk assessment be carried out and forwarded to the office, when there is a significant change in the work program or there are obvious work hazards that need to be managed to ensure a safe work site.





5.1.1 Step - 1 : Identify the Hazards and existing safeguard

Systematic approach could involve:1. Inspections of the work place /area i.e. “Walking the job“2. Preparing and reviewing a schedule of tasks, activities or work

operations (Annex A provides examples of work activities )3. Reviewing the equipment and substances to be used4. Safety meeting minutes5. Accident / incident books, records and investigation reports.6. Regulation, code of practice and guidance notes may assist in

identifying hazards from particular machines or process.

The hazards categories listed at Annex B should be consulted to help ensure that no hazards emanating from the work activity are omitted.

Consideration should also be given to hazards arising from reasonably foreseeable changes in the circumstances or conditions.

5.1.2 Step - 2 : Assess severity of hazards effect or consequences

The hazards impact severity extents to cover the personnel (employee and public) injury and ill health, damage to property and damage to the environment as per table -1 below.

SeverityLevel

Degree of potential impact to

Personnel Public Property Environment

1 Disastrous Life threateningExpose to Life threatening hazard

Loss of unit or loss of critical equipment

Large released (uncontained) >15 bbls

2Very

SeriousDisability/severe injury

Expose to injury hazard

Result in unit downtime

Medium released (uncontained)1-15 bbls

3 Serious Lost Time Injury, no disability

Minor impact Operational slowdown

Small released< 1 bbl

4 Minor First Aid injury No impactPotential ops slowdown

Contained released

5.1.3 Step - 3: Assess the likelihood of occurrences

The assessor should make a judgment on the likelihood that the potential harm will be realized. First, evaluate the possibility of the occurrence of the unsafe act or condition which could cause harm and second is the likelihood of harm being caused.

The likelihood of the harm being realized will be affected by:

1. The frequency of the exposure to the hazard. E.g. is a machine in constant use or used once a week? Are fork lift trucks moving around a busy well populated factory or are operating in a virtually deserted store?





2. How effectively the hazards are already controlled by existing safeguard (preventive or precautionary measure). For example does the machine have an effective, correctly interlocked guard?

3. How the way of working is organized. E.g. is the machine operated by a competent person who is aware of and understands the hazards and is not under pressure to ignore safety precautions? Is machine correctly maintained? Environmental factors should also be considered such as lighting, heating and ventilation. Is shift pattern reasonable?

Judgment of likelihood will also be affected by reference to past HSE audit and inspection reports.

Likelihood or probability of occurrence is split into 4 levels:

Level - 1. Has occurred frequently (occurs on the order of once or more per year and is likely to re occur within a year)

Level - 2. Has occurred infrequently (occurs on the order of less than once per year and is likely to re occur in 3 years)

Level - 3. Has occurred rarely (is known to have happened but statistically credible frequency cannot be determined)

Level - 4. Postulated Event (may be possible but is not known to have occurred)

Two important laws of human nature should always be taken into account , First, never rely solely on common sense as it is much less common then generally assumed. Second, always rely on sod’s law , “ if someone can do it , sooner or later someone will”

5.1.4 Step - 4: Assess the risk ratingThe risk rating is determined by combination of the impact of hazard severity and the likelihood or probability of occurrence.

The formula:

Risk rating = Hazard severity X likelihood of occurrence





Based on the calculation of Risk rating, Level of risk can be inputted into the risk column and use table -2 below to decide the next step action.

Risk LevelRisk

RatingAction and authority level

X - Extreme 1Unacceptable Risk. Additional safeguards are definitely required. Work must not be performed without sufficient safeguards in place, and the risk level has been reduced.

H - High 2-3Additional safeguards shall be put in place to minimize risk. Without additional safeguards work can only be done with the approval of President director.

M - Medium 4-6Additional safeguards are required to be put in place. Without additional safeguards work can only be done with the approval of Area Operation and HSE Manager.

L - Low 8-9Additional safeguards are advised to put in place. Without additional safeguards work can only be done with the approval of Area Operation Mgr.

A - Acceptable 12-16 Additional Safeguards is not required. Operation Supervisor can authorize the work to continue.

The process of establishing individual ratings is a matter of judgment and no hard fast rules and time scales are proposed.

As general guidance additional safeguards would normally be required for a rating of 9 and below, and overall aim is to move the risk ratings to as lowest as reasonably practical (ALARP) level.

5.1.5 Step - 5: Additional Safeguards (Controls) Measures

The assessment of step 4 will have concluded that the control measures in place were sufficient or that additional safeguard or control measures were required to reduce the risk to an acceptable level.





In this step-5, the following types of additional safeguards or controls can be put in place to further reduce the risk level. They are listed in a priority order; . 1) Elimination (e.g. replacing defect or non-spec. equipment with a new one)2) Substitution by some thing less hazardous and risk.3) Enclosure (enclose it in a way that eliminates or controls the hazard/risk)4) Guarding / segregation of the people 5) Safe work system that reduce the risk to an acceptable level6) Written procedures that are known and understood by those affected7) Adequate supervision during the work8) Identification of training needs9) Information /instructions ( signs, handouts )10) Personnel protective equipment.

IMPORTANT: It is very important to ensure that the new control measures do not introduce another hazard.

5.1.6 Step - 6: Define action required to implement the additional control measure

Input additional control measures into the provided column and, determine the remaining risk rating using the same process in step-4.

5.1.7 Step - 7: Implementation, Monitoring and Review

Each additional control measures should be summarized under conclusion and actions required, which record should be retained by Area Manager responsible and HSE Manager. Area Operation and HSE performance meeting or special meeting can be used for monitoring the closure of these control measure.

Implementation of agreed safe working system may require:

1. Definition of new work procedures, code of practice 2. Changes in working place 3. New Equipment design

Completion of all the preparatory work should be followed by good communication through supervision to employees, with specific training where appropriate.

5.2 Responsible Person

5.2.1 Operations Manager o Responsible to the conduct of Risk Assessment for a new project or

new development program such as new facility, new equipment, etc o Propose RA team and team leader and get appropriate approval

from managemento Review and Approve the RA results





o Ensure that all action plans in the additional control measures are properly closed

5.2.2 HSE Managero Ensure that Risk Assessment for a new project or new development

program such as new facility, new equipment, etc. are conducted.o Approve proposed RA team and team leadero Review and Approve the RA results

5.2.3 HSE Officer o Participate in the RAo Record keeping of all RA and track the closure of the action plano Participate in the RA action closure review meeting

6.0 References: - Annex A- Annex B- Attachment 1 - Job Safety Analysis Form- Attachment 2 - Risk Assessment Form





ANNEX A :

Non-exhausted list of activities for which risk assessment should be carried out:

Manual handling

Mechanical handling

Working at heights

Maintenance activities

Modifications to building , plant or equipment

Operating machinery

Welding

Grinding

Soldering

Handling hazardous substance

Loading and unloading of transport

Specialized electrical work or testing

Working with asbestos

Pressure testing

Operating process equipment

Floor cleaning

Brazing

Laboratory work

Confined space entry

Spray painting





ANNEX B:

The objective is to identify everything which can cause harm to people, damage to property and to the environment. For ease of reference these have been categorized by check list headings.

a) GRAVITY Personnel falling down lift shaft Goods falling down lift shaft Loads falling on personnel during lifting operations Contractors working on roof Fall from heights Unfenced stairwell Unfenced shaft Falling into open tank Falling from ladder

b) MANUAL HANDLING Contact with chemicals Inadequate stacking Inadequate racking Loading / unloading vehicles Inadequate training /instruction on manual handling Injury from handling repetitive loads Lifting, pushing, pulling of heavy or awkward loads

c) HAND TOOLS Unsuitable tools used on job Poorly maintained tools Sharps knives Oily rags – contamination Inadequate personnel protective equipment Electrical powered tools unsafe

d) MECHANICAL HANDLING Use of cranes Forklift operations Equipment fall during crane operations Forklift toppling on yard , gradients/surface Lift truck toppling crashing Slippery floors Uneven floors Ineffective drainage

e) MACHINERY AND PLANT Danger from abrasive wheels Entanglement in moving machinery Unguarded machinery Friction / abrasion Impact Crushing





Drawing in Eye protection for welding process Inadequate VDU screen / work stations Ergonomic of machinery / work stations Poor house keeping Hot pipes Pressurized lines bursting Plant left in dangerous condition / unattended Poor design of plant and equipment Poor construction / materials of plant and equipment Interlocks or controls overridden Substance falling or omitted from work equipment Rupture of work equipment Discharge of gas , dust or vapor from work equipment

f) VEHICLES Injury from moving van/car Injury from moving forklift Injury to forklift driver

g) FIRE Risk to personnel from fire in premises Risk to assets from fire and explosion Ignition of flammable liquids Propane /Butane cylinder discharge igniting Electrical fault causing fire Welding operations Diesel storage Inadequate procedure Fire exit blocked Fire equipment poorly maintained Waste materials stored causing fire risk Plant / Equipment overheating.

h) EXPLOSION Gas cylinder exploding Air receiver exploding Butane /propane cylinder exploding Boiler exploding Bulk storage tank exploding

i) ELECTRICAL Shock , burn or explosion from electrical supply Shock , burn , or explosion plant and equipment Shock , burn , or explosion from portable equipment

j) PRESSURE Many of those reviewed in explosion section Rupture of work air line

k) NATURAL PHENOMENA





Wind causing slates to fall from roof Wind making it unsafe to carry out work on the roof Use of vehicles in fog





l) ENVIRONMENTAL Inadequate ventilation Inadequate lighting Working temperature

m) NOISE AND VIBRATION Noise from cylinder discharge Noise plant and machinery Noise from Shot blaster Noise from plating and sheet metal work

n) ENVIRONMENTAL HAZARDS Poor house keeping Poor handling, storage, containment, discharge, or disposal of liquids, fuels,

degreasing liquids / chemicals). Excessive quantities of hazardous liquids or substance on sites Lack of , or inadequate , building for fluid storage Overfilling of the tank Soil and ground contamination Contamination of ground, river and harbor Drainage system dangers associated with contamination of ground water , river or

harbor Possible spills or leaks as a consequence of other accidents or emergencies Tanker loading/ unloading Transportation of liquids or hazardous substance Poor handling, storage, containment, or disposal of water and also of “special liquid“

(e.g. corrosive, toxic or flammable ) Activities or process with potential to harm environment.


Attachment 1 – Job Safety Analysis Form

Page 17 of 18

___ ___ ______ ___ ______ ___ ______ ___ ______ ___ ______ ___

Prepared By: Review & Approved By: Client Reps.

Location :

Job's Task :

JOB SAFETY ANALYSIS (JSA)Doc. Control No.

Rev. 0: 20 Aug. 2008

Action To Control & Minimise HazardsTindakan yang diambil untuk mengontrol bahaya

No. Basic Steps Langkah pekerjaan dasar

Hazards Associated With Each StepBahaya yang ada pada tiap langkah pekerjaan

Pertanyaan kritikal yang perlu di perhatikanCritical questions to consider

Hard Hat

Hand Protection (Gloves)

Safety Harness Face Shields Fire Extinguisher Entry/Work Permit Hot Work Permit

Safety Shoes CoverallSafety Glasses Other ____________ Potensi pencemaran lingkungan & gas lepas sdh di bicarakan?

__________________

Safety Equipments and Actions Required for this Job Peralatan Safety dan tindakan yang perlu dilakukan untuk pekerjaan ini

Work Vest Log Out Tag Out Gas Check Barricade

Hearing protection Apakah semua krew dlm keadaan sehat utk bekerja?

Kemungkinan terburuk sudah di diskusikan?Worst case scenario been discussed?

----

----Potential Spill/Gas released addressed?

----

Is everyone fit and ready to work?

Attachment 2 – Risk Assessment Form

Page 18 of 18

Company : Location :

Conducted by : Approved by :

S = SeverityL = Likelihood

Additional Safeguards Proposed

SNo. Hazard Hazard impact Existing safeguards LResidual Risk

Acceptable Risk?

Date performed : Current Review :

Next Review : Last Review :

S L Risk

HAZARD IDENTIFICATION RISK EVALUATION RISK CONTROL

RISK ASSESSMENT FORM

Documents

PEI-QHSE-002-Hazards Identification and Risk Management Procedure.doc