Electrical Maintenance How does this affect your company? Electricity is one of the most important tools in our everyday lives, both domestically and in the workplace. However, it is also one of the most lethal and is statistically, (as detailed below), the most likely cause of large fires. The key to managing electricity supplies and electrical equipment is ensuring that they are correctly installed, safeguarded to the recommended rating and, most importantly, maintained on a regular basis. There are many different codes and legislation used around Europe; they mandate rudimentary levels of protection for electrical systems and equipment. These tend to be focused more on installation standards than ongoing maintenance and are written as a minimum standard and do not take into account usage or criticality of systems/equipment. Why does this affect your company? Electrical ignition UK fire losses 2011 to 2012 Whether electrical equipment is being used for lighting, running machinery, operating a portable appliance or charging forklift trucks, its protection and maintenance must be managed. It is important not to waste valuable resources when carrying out periodic inspections and maintenance, so time should be spent evaluating each installation, machine or appliance and producing a schedule that reflects usage, importance and legislative requirements. GBPM 200 160 120 80 Key Loss GBPM Count There are also useful tools that can help in identifying potential issues or hot spots in large systems. This technology uses infrared scanning of electrical distribution centres, panels and connections around critical equipment, even if it is inaccessible. 40 0 2011 2012 Note: This data published with the permission of the FPA
What could happen to your company if you don t take these steps? Electrical ignition is the most common cause of industrial fires today. For example, adding additional electrical equipment without completing the necessary load studies, failing to repair or replace damaged electrical equipment or keeping electrical equipment in use beyond its recommended service life will all increase the chances of electrical faults and fires at your facility. These could lead to significant fire damage and resulting business interruption. This document highlights the basic requirements needed to produce an effective electrical maintenance programme, and emphasises the need for companies to carry out a well balanced programme based on manufacturers recommendations, legislative requirements and your own standards. The consequences of a fire, especially in critical equipment, could prove disastrous for any business. For further information on Electrical Maintenance please contact your local Tokio Marine Kiln office or contact: Risk Engineering Administrator 20 Fenchurch Street London, EC3M 3BY resources@tokiomarinekiln.com What should your company do / have? Portable appliances Should be inspected and tested by a competent person at least every twelve months. Also any domestic electrical appliances brought in from an employee s home, should be inspected and tested before use in the workplace. Reporting faults When a piece of electrical equipment fails or is intermittently faulty, it is essential that it is reported immediately and the item is repaired or disposed of in a timely manner. Maintenance programmes A well managed preventative maintenance programme will improve the overall running and efficiency of machines and help to avoid breakdowns, which will ultimately save money. One of the most popular modern methods for large scale evaluation could be to initiate an Infrared Thermal Imaging programme. Risk assess Consider loss prevention issues when designing the programmes. This could include special focus on critical machinery, (process bottlenecks), or hazardous process machinery that could cause a safety issue or a fire if they fail catastrophically. Certified Only install certified electrical equipment. Also ensure all circuits are certified to the current European standards when they are new or when they are modified. Poor housekeeping Do not accept poor housekeeping around electrical cabinets, motors and machinery. Often when electrical equipment fails it generates heat and sometimes sparks,which can easily ignite combustible waste materials and potentially cause a much larger fire. Manufacturers recommended maintenance intervals When compiling the maintenance schedules for electrical equipment it is essential to comply with the manufacturers recommendations on maintenance intervals. Evaluate Evaluate the usage and importance for all electrical equipment when considering the periodic maintenance schedules. www.tokiomarinekiln.com References Maintaining Portable Electrical Equipment in Offices (UK, HSE 1996) BS 7671:Requirement for Electrical Installations: IEE Wiring Regulations The Electrical Equipment (Safety) Regulations 1994 FM Data Sheet 5-20 Electrical Testing (including Infrared Thermal Imaging Systems) is a trading name of Insurance Limited (Registered Number 989421) and Syndicates Limited (Registered Number 729671) which are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Firm Reference Numbers: 202574 and 204909 respectively. The registered office of both companies is located at 20 Fenchurch Street, London EC3M 3BY. A member of the Association of British Insurers.
Fire Safety Inspections How does this affect your company? Loss history clearly demonstrates that both the frequency and severity of fires is significantly reduced at facilities where a good fire safety inspection system is in place. Every facility will have its own specific hazards and associated fire exposures and it is strongly recommended that each site develops its own procedure covering fire safety items. However, the Fire Safety Inspection Checklist offers a good starting point to help you to identify fire hazards and potential ignition sources, ensure that emergency response equipment is in place and ready for use and, importantly, that housekeeping standards are maintained at a high level. can help you design your own checklist specific to your site. Once the checklist has been developed, competent and well-trained employees should be used to complete these regular inspections. Management support and involvement in this process is essential to help ensure that trends are identified and that any problems are quickly rectified. Why does this affect your company? A fire will start as a small flame and grow into a large incident due to the combustible nature of the materials around it. Waste materials, packaging, combustible storage and flammable liquids are a significant source of fuel for a fire and could easily be minimised with good management standards. To minimise the risk of a fire occurring, consideration should be given to the obvious fire hazards. These can include: Smoking materials Hot work Electrical maintenance/earth bonding Storage of hazardous materials. The main features required for an effective fire safety inspection: Define roles and responsibilities Keep the checklist simple and easy to follow Define the areas to be included in the Fire Safety Inspection Checklist Maintain records and review on a regular basis to identify possible trends Conduct inspections on a regular basis (preferably weekly) Record all types of losses or near misses Continual awareness by all employees The most important factor is that the checklist should become part of the company s procedures. As a company you may already carry out health and safety inspections. This process will not replace the inspections already being conducted, but will enhance the min terms of scope. It would be our advice to incorporate the Fire Safety Inspection Checklist criteria into your existing inspections.
What could happen to your company if you don t take these steps? For any business it is a challenge to keep fire safety at the top of the priority list until you actually witness and have to deal with the devastating effects of a fire. Our experience is that it often takes a significant fire event to raise interest in the importance of fire safety issued at senior management level. Our most forward thinking and proactive customers learn from loss history and implement these types of self checking and audit processes before they suffer the impact of a serious fire event themselves. To obtain copies of the Fire Safety Inspections Checklist please contact your local Tokio Marine Kiln office or contact: Risk Engineering Administrator 20 Fenchurch Street London, EC3M 3BY resources@tokiomarinekiln.com www.tokiomarinekiln.com What should your company do / have? Responsible person There should be a dedicated employee responsible to undertake, review and provide corrective measures. An individual or team should be trained to conduct these fire safety inspections. Management of change In the event a unique process or a new piece of equipment is introduced to the facility via the management of change process, then the existing fire safety inspections will need to be modified in terms of content and scope. Inspections Routine inspections should be conducted at regular intervals, (preferably at least monthly), and should cover the internal, external and perimeter of the facility. Random inspections should also be conducted to evaluate that safety practices are followed at all times, and not just for inspections. Near miss and loss reports All reports should be recorded and reviewed to highlight deficiencies. Actions to prevent similar situations occurring should be shared within the company and additional training provided where necessary. Training and education All people involved with impairment activities should be fully trained and educated on implementing impairment handling procedures and the possible hazards associated with them. Record and maintain results Routine monitoring and evaluation of the inspection results by management can help to highlight recurring problems. This will ensure that prompt corrective actions are taken to address unsatisfactory conditions that could lead to property damage or business interruption. References Fire Safety Inspection Checklist available in English, French, German, Spanish and Italian Exercising for Excellence, published by BSI, ISBN, 978-0-580-50953-7 Business Continuity Planning A safety net for business article from Infocon Magazine Issue One, October 2003 is a trading name of Insurance Limited (Registered Number 989421) and Syndicates Limited (Registered Number 729671) which are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Firm Reference Numbers: 202574 and 204909 respectively. The registered office of both companies is located at 20 Fenchurch Street, London EC3M 3BY. A member of the Association of British Insurers.
Impairments to Fire Systems How does this affect your company? An impairment is a partial or complete isolation of any type of fire protection or detection system which is installed within your premises. It can also be applicable for security systems. The essence of this process is to ensure that the impairments are only carried out if absolutely necessary, and are monitored to ensure that the system is reactivated at the earliest opportunity. It is essential that all impairments of critical fire systems are kept to the absolute minimum in terms of scope and duration. The Impairment System covers all the key elements to consider in order to carry out an impairment safely and quickly. It is strongly recommended that you contact if you have any questions about an impairment that you need to implement. Our risk engineers will be able to provide further advice and guidance based on their experience to help limit the duration and scope of an impairment. Why does this affect your company? While planned impairments may be necessary during day to day maintenance and projects, it must be understood that if part or all of the fire protection system is impaired then the facility is at risk. The fire protection systems are there because occupancy or process hazards have been identified and the fire risks associated with these need to be minimised. When an impairment occurs, whether it be accidental or planned, it is necessary to minimise the risks. These may include arranging temporary protection, reducing the hazards and managing the impairment to ensure that the impairment is restored in the shortest possible time. There are three types of impairments that occur: the first being a planned impairment ; the second being an emergency impairment ; and the third and most dangerous is the hidden impairment. Obviously, it is preferable to have a planned impairment with time to prepare. However, when unforeseen circumstances occur it is essential that when a system is isolated due to a problem or fault, that it is not left and forgotten about. Planned impairments Planned impairments are implemented during maintenance or projects, or if a fire system needs to be extended/isolated. Whatever the reason for the impairment, good planning means that the risks can be minimised. In order to minimise the duration of planned impairments all required materials and parts should be on site before isolating the system. Emergency impairments Emergency impairments tend to be at a time of routine testing where an impairment has been discovered, or a fire system needs to be shut down in an emergency. Hidden impairments Hidden impairments are ones that no one is aware of or that have been forgotten. Correct application of the Impairment System could help reduce the risk of hidden impairments. Such hidden impairments do occur, and if a system is isolated it will not extinguish a fire or raise the alarm.
What could happen to your company if you don t take these steps? There have been many high profile incidents where fire protection systems had been isolated and the building or facilities were lost. In 1988 the Piper Alfa oil and gas platform in the North Sea had a gas explosion on a compressor and the fire spread quickly. The platform was fully protected with a deluge system, but the fire pumps had been impaired while some divers had been carrying out maintenance earlier in the day. Two engineers lost their lives trying to reach the sprinkler pump control panel to turn them back on. In the end, over 160 people lost their lives in this one incident. To obtain copies of the Fire Safety Inspections Checklist please contact your local Tokio Marine Kiln office or contact: Risk Engineering Administrator 20 Fenchurch Street London, EC3M 3BY resources@tokiomarinekiln.com www.tokiomarinekiln.com What should your company do / have? Safer alternative Consider whether the fire system needs to be shut down to complete the job or could another method be implemented to ensure that the systems remain operational. impairment system Apply the impairment system or an equivalent system and limit the permit validity to one shift only. This should apply to employees as well as contractors, and should form part of the risk assessment undertaken for the impairment. Hot work, smoking and hazardous operations should not be permitted in the affected area during the impairment. Notification Inform department heads, alarm monitoring company, emergency response team members, fire brigade, employees and insurance companies of the impairment. Inform members of the team of any changing situation where the impairment time needs to be extended and when the system has been restored. Training All people involved with impairment activities should be fully trained and educated on implementing impairment handling procedures, together with the possible hazards associated with them. Manual fire fighting equipment Fire hoses should be laid out and connected, (if not impaired), and/or additional fire extinguishers should be positioned in the area of the impairment. The person undertaking the impairment should be trained in the use of this equipment. One impairment As many fire protection/detection systems as possible should remain operational during the period of the impairment. Ensure that the work on the impaired system is expedited and provides a continuous fire watch in the affected area. Responsible person There should be dedicated site employees with the authority and knowledge to issue an impairment system. Contractors should not be allowed to issue any impairment system, and they should be fully supervised on site. Where possible plans should be developed to allow rapid reinstatement of the fire system in the event of an incident. References Impairment System available in English, French, German and Spanish NFPA25 Inspection and Testing of Water Based Protection Systems is a trading name of Insurance Limited (Registered Number 989421) and Syndicates Limited (Registered Number 729671) which are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Firm Reference Numbers: 202574 and 204909 respectively. The registered office of both companies is located at 20 Fenchurch Street, London EC3M 3BY. A member of the Association of British Insurers.
Flammable Liquids Handling How does this affect your company? Flammable liquids are used in many different operations within the workplace and create a special fire and explosion hazard. The liquid itself and the vapours generated can potentially cause significant property damage, injury and death if adequate safety measures are not implemented. A flammable liquid is any liquid that has a closed cup flash point below 55 C and can be further sub-categorised as extremely flammable, highly flammable or flammable depending on the flash point. Flammable liquids such as petrol, solvents and heating fuels not only provide a ready ignition source for a fire to start, but also contribute to the growth and spread of a fire once it has started. Consequently, flammable liquids require specific control measures in relation to their safe use, handling, storage and transportation. has specialist knowledge in the field of loss prevention engineering and we would strongly recommend that you contact us if you have any questions about the safe use and handling of flammable liquids in your workplace. Why does this affect your company? Many serious fires have occurred in industrial premises where flammable liquids have either been used in the production processes or stored on site. These fires could have been prevented if the company had effective procedures in place for preventing, protecting and responding to incidents involving flammable liquids. Flammable liquids are categorised as: Extremely flammable Highly flammable Flammable depending on the flash point of the particular liquid, (consult the Material Hazard Safety Data Sheet issued by the manufacturer/supplier). Extremely flammable Any liquid which has a flash point below 0 C. Highly flammable Any liquid which has a flash point between 0 C and 21 C. Flammable Any liquid which has a flash point between 21 C and 55 C. Flash point The lowest temperature of a liquid at which point ignitable vapours are given off in sufficient concentration to form a combustible mixture with air near the surface of the liquid. This is a direct measure of a liquid s volatility. The lower the flash point, the greater the volatility and the greater the risk of fire. N.B. Flammable liquids with a flash point above 55 C that are handled at temperatures above their flashpoints may also present a fire and explosion hazard.
The main considerations when dealing with flammable liquids in the workplace are: Environment in which the flammable liquid is being used For example, is it being heated, is it pressurised for paint, is it being used in areas prone to electrostatic discharges, is it being used in a closed environment or somewhere with adequate ventilation, or does the liquid react with other liquids badly? Potential ignition sources For example, naked flames, hot work, smoking, electrical lighting, power circuits, heating equipment, processes that involve friction or generate sparks, hot surfaces, static electricity. Fire development How the fire could start, continue to grow, spread, be controlled and extinguished. For more information on Flammable Liquids Handling please contact your local Tokio Marine Kiln office or contact: Risk Engineering Administrator 20 Fenchurch Street London, EC3M 3BY resources@tokiomarinekiln.com www.tokiomarinekiln.com What should your company do / have? Safer alternative On an ongoing basis, reviews should be undertaken of each manufacturing process which use flammable liquids to establish whether a safer alternative could be used. Pre-incident fire plan This should be developed and issued to the fire brigade to provide them with details of the building location, layout, construction, flammable liquids on site, water supplies, fire protection and detection systems, venting arrangements and emergency organisation. Separation and containment Areas where flammable liquids are handled or stored should be fire separated from other areas of the building in a well ventilated area constructed to contain any accidental release of the flammable liquids. Where possible, this room should be located on an external wall with additional direct access from outside the building. Small quantities in the workplace should be kept in specially designed safety cans and stored in a Flammable Liquids Cabinet. Emergency response This is a written document that includes contact with the fire brigade, trained fire squad to tackle incipient fires (if safe to do so), isolation of plant and utilities safely, and evacuation of the building. Fire protection/detection It is essential that all fire protection/detection systems are kept operational at all times and any impairments carefully managed to ensure minimum down time. Fire protection systems should also be designed to adequately protect flammable liquids. Manual fire fighting equipment Fire hoses and hand held fire extinguishers should be readily available. This equipment should be sited in a prominent location and provided with signage to explain the type of fire that can be extinguished with the equipment. Staff should be familiar with the operation of this equipment in their area of work. Training This should be provided to responsible persons on precautions that should be taken when handling, transporting and disposing of flammable liquids. Responsible person For managing ignition sources, housekeeping, hot work, electrical items, etc. This person should have the training and experience to be classed as competent. References Health & Safety Executive (HSE) Guidance Series publications available from HSE Books on 01787 881165, website www.hsebooks.co.uk: The safe use and handling of flammable liquids HSG140 The storage of flammable liquids in containers HSG51 The storage of flammable liquids in tanks HSG176 The spraying of flammable liquids HSG178 Dangerous Substances & Explosive Atmospheres Regulations 2002. Approved Code of Practice and Guidance L138 is a trading name of Insurance Limited (Registered Number 989421) and Syndicates Limited (Registered Number 729671) which are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Firm Reference Numbers: 202574 and 204909 respectively. The registered office of both companies is located at 20 Fenchurch Street, London EC3M 3BY. A member of the Association of British Insurers.
Hot Work How does this affect your company? Hot work is any temporary operation that produces open flames, sparks or heat. Hot work activities include: Brazing and soldering Grinding and cutting using disc grinds Use of blow lamps/blowtorches Welding or cutting using gas or electric equipment Use of bitumen/tar boilers Many serious fires have occurred during construction or maintenance activities where hot work was carried out on either the fabric of the building or machinery within the facilities. These fires could have been prevented if the sites had operated an effective hot work permit system and personnel were trained on how to deal with the hazards of hot work. The Hot Work Permit covers all of the key elements of a good system. Every facility is different, so it is strongly recommended that each site develops their own procedure covering any specific on site hazards in addition to the core attributes of the Tokio Marine Kiln system. If you have a question about any hot work procedure you need to carry out please contact. Why does this affect your company? Hot work ignition UK fire losses 2011 to 2012 One of the major causes of industrial fires is hot work. It is also commonly recognised that a large percentage of hot work fires are started by external contractors who are appointed to undertake maintenance activities. This percentage is likely to increase as more and more facilities sub-contract everyday maintenance activities to third party companies. The employees of these companies are sometimes not aware of specific on site hazards such as combustible construction, which could be exacerbated by hot work. Many sites believe it won t happen to them, but unfortunately the law of averages dictates otherwise. Once people have been suitably trained, the application of safe hot work practices should become second nature and integrated. GBPM 100 80 60 40 20 0 2011 2012 Key Loss GBPM Count Note: This data published with the permission of the FPA
What could happen to your company if you don t take these steps? It is an interesting statistic that while hot work remains one of the most common causes of fires, most industrial facilities have a Hot Work Permit system available to use. Clearly simply having a permit system is not protection enough. The system has to be stringently implemented by trained individuals and applied to in-house staff as well as contractors. To obtain copies of the Tokio Marine Kiln Hot Work Permit please contact your local Tokio Marine Kiln office or contact: Risk Engineering Administrator 20 Fenchurch Street London, EC3M 3BY resources@tokiomarinekiln.com www.tokiomarinekiln.com What should your company do / have? Safer alternative Only use hot work as a last resort. For example, can cold cutting techniques be employed such as a reciprocal saw to eliminate torch cutting, can mechanical fixings be used instead of welding, can pipe be joined using threaded connections as opposed to welding, can the hot work be undertaken outside of the facility in the yard area? Fire watch This should be continuous during the work and for at least one hour after completion of the work. In addition regular monitoring of the area should take place for at least a further three hours. The majority of hot work fires smoulder for a number of hours before escalating into a more serious incident. Removal of combustibles All combustibles within a 10m radius of the hot work area should be removed or covered with fire resistive tarpaulins. In addition, all floor penetrations should be sealed with fire resistive material. If hot work is being undertaken at a high level then tarpaulins should be suspended beneath the area to contain any sparks. Permit Apply the Hot Work Permit or an equivalent permit and limit duration of permit validity to one shift. This should apply to employees as well as contractors and should form part of the risk assessment undertaken for the work. Fire protection/detection All fire protection/detection systems should remain operational during periods of hot work unless there is a danger that the system could be accidentally actuated. If a system has to be isolated, then the unprotected area should be as small as possible and the system should be reinstated as soon as possible after the hot work is completed. The Fire Protection Impairment Form should be used when isolating fire protection systems. Manual fire fighting equipment Fire hoses should be laid out and connected and/or fire extinguishers should be positioned in the area of hot work. The person undertaking the fire watch should also be trained in the use of this equipment. Training All people involved with hot work activities should be fully trained on the possible hazards. Responsible person There should be dedicated site employees with the authority and knowledge to issue hot work permits. Contractors should not be allowed to issue hot work permits and they should be fully supervised on site possible hazards. References Hot Work Permit available in English, French, German, Spanish and Italian Fire Protection Association, Hot Work Permit Scheme ISBN1 902790 19-7 Fire Protection Association, Hot Work Risks DVD www.thefpa.co.uk NFPA51B Standard for Fire Prevention During Welding, Cutting, and Other Hot Work www.nfpa.org is a trading name of Insurance Limited (Registered Number 989421) and Syndicates Limited (Registered Number 729671) which are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Firm Reference Numbers: 202574 and 204909 respectively. The registered office of both companies is located at 20 Fenchurch Street, London EC3M 3BY. A member of the Association of British Insurers.
Housekeeping How does this affect your company? As with any company, it is the use of management programmes that drives the business and defines its success. Proper housekeeping standards are vital to loss prevention. Poor housekeeping in most cases is very visual and is blamed on poor processes, but is often the thoughtlessness or complacency of those responsible for the areas. There are many factors that could be classed as poor housekeeping, but it is often as simple as: accumulation of rubbish, machining swarf, leaks from dispensers or machines, obsolete parts or stock. Whatever the issue, it is essential that the area is clean, organised and arranged in a manner that does not hamper the activities undertaken. This will help to ensure the continuing support of all workers in the area. There are other benefits to maintaining these standards as people will work harder and more accurately in a clean, well organised environment. These standards should also help to prevent fires occurring, limit the growth of fires and improve the effectiveness of the emergency response when trying to deal with a small fire as fire extinguishers will be readily accessible, easy to reach and visible. Why does this affect your company? Poor housekeeping standards are known to increase the potential for a loss from fire. It is essential that management actively demonstrates support of proper housekeeping standards. This can be best achieved through a written programme with agreed standards for keeping areas and machinery clean and orderly. For it to work successfully everyone involved must be aware of what is expected of them on a day to day basis and management should monitor the situation to ensure standards remain high. The implementation of a checklist for responsible employees to monitor the areas on a continuous and regular basis should be considered. The main features required for an effective housekeeping standards: Define roles and responsibilities All employees should be vigilant and maintain the housekeeping standards Define the level of cleanliness Monitor areas on a regular and random basis Reward consistently good housekeeping practices Provide adequate and proper cleaning equipment and materials The most important factor is that the standards should become part of the company s procedures.
What could happen to your company if you don t take these steps? Good housekeeping practices don t just happen and it is essential that the whole company is committed to the philosophy. There is no doubt that initially there is a cost to good quality housekeeping standards, but in the long-term there should be benefits from improved process flow, greater output and better communication. The ultimate benefit is that if an incident occurs in the workplace, the emergency response is not hampered by accumulated rubbish, obsolete equipment or blocked aisles. This will help to ensure that a small incident stays small. For further information on housekeeping please contact your local office or contact: Risk Engineering Administrator 20 Fenchurch Street London, EC3M 3BY resources@tokiomarinekiln.com www.tokiomarinekiln.com What should your company do / have? Housekeeping leaders Set up a group which has a direct line to the site management. This team should define the levels of cleanliness and cascade this information across the company to ensure that all people know their roles, responsibilities and the standards that must be maintained. Roles and responsibilities The housekeeping leaders should carefully determine the correct number of people required to maintain the level of cleanliness. Culture of cleanliness Possibly the most difficult thing to establish in any company is a culture of cleanliness, but once in place this will pay significant dividends. Reward Maintaining a culture of cleanliness is challenging at all levels of a company and consistent good housekeeping practices should be acknowledged and rewarded. Be vigilant Emphasise the housekeeping message at all times by encouraging staff to remain vigilant and observe the housekeeping standards. Changes Review on a regular basis any changes in the facility or process that might affect the housekeeping and agree acceptable levels of cleanliness. Poor housekeeping Do not accept poor housekeeping under any circumstance. Monitor Both the housekeeping leaders and senior management should monitor all the areas of the business on a regular basis. References Fire Safety Risk Assessment Factories and Warehouses (HM Government 2006) is a trading name of Insurance Limited (Registered Number 989421) and Syndicates Limited (Registered Number 729671) which are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Firm Reference Numbers: 202574 and 204909 respectively. The registered office of both companies is located at 20 Fenchurch Street, London EC3M 3BY. A member of the Association of British Insurers.
Management of Change How does this affect your company? In all businesses changes occur when modifications are made to the facility, process, equipment or personnel. The most radical changes occur during major construction projects, whereas changes in process, equipment or personnel can be much more subtle. All such changes must be managed carefully to ensure they do not introduce new hazards that could increase the risk of property damage or business interruption in the facility. Poorly managed changes could result in a catastrophic fire or another type of loss. Why does this affect your company? Changes large enough to be considered capital projects are obvious candidates for management of change (MOC) procedures. The construction of a new plant or extension to an existing facility should always be subject to MOC procedures. An example would be introducing combustible construction in the form of metal panels insulated with foam plastic without understanding the significant fire exposure to your business created as a result. Changes involving smaller and less obvious projects can also cause unexpected losses. An example of this could be changing the type of adhesive used on a production line from a non flammable, (often expensive), to a much cheaper type that is solvent based and flammable. This change will require fume extraction, earth bonded safety dispensers, storage in a specially designed cupboard, and explosion rated electrical equipment within the vicinity of application. Suddenly a small change of the adhesive introduces a number of additional hazards. If these are not managed correctly and risk engineered, they will increase the fire risk in the facility significantly. The main features required for an effective management of change system: Establish appropriate and consistent terminology Keep the procedure simple and easy to understand Define roles and responsibilities Define the scope of the MOC system Integrate MOC with company policies Establish requirements for review and authorisation Issue guidelines for key MOC issues Develop a written description of the MOC system: How to identify likely change situations Establish request for change review and approval procedures Design MOC system documentation Define training requirements Develop communication between the MOC team and senior management Provide adequate training for the specific roles and responsibilities in the MOC system The most important factor is that the checklist should become part of the company s procedures.
What could happen to your company if you don t take these steps? Inadvertently introducing a new special hazard as part of a process change or increasing combustible loading without ensuring the proper safety measures are incorporated as part of those changes could expose your facility to a significant fire and resulting business interruption. In order for this type of programme to succeed it is essential that management demonstrate leadership and commitment. The MOC process must be provided with adequate resources. As with most aspects of loss prevention and control, it is essential senior management understand what is at stake if things go wrong. For further information on Management of change please contact your local Tokio Marine Kiln office or contact: Risk Engineering Administrator 20 Fenchurch Street London, EC3M 3BY resources@tokiomarinekiln.com www.tokiomarinekiln.com What should your company do / have? Safer alternative Whenever considering changes always look for the solutions that are inherently safer. It is better to eliminate a hazard than try to reduce the risks through physical changes or procedures. Contact Advise your local office of the proposed changes. The assigned risk engineer will then provide valuable and cost effective loss prevention advice. Project review Once a project has commenced, will formally review the drawings and relevant information. Management The management should support and lead the MOC procedure. Suitable resources should be provided to support the procedure and adequate time incorporated into project plans to allow for the process to be applied. Monitor Establish a procedure for the audit of the MOC procedure to measure the performance and effectiveness. It should be recognised that all changes will not require the same level of review. Plant personnel should examine random examples and verify that the MOC programme was correctly implemented. If the system has not been applied correctly or it has not been effective then suitable actions should be taken to rectify the issue. Integration Integrate the MOC procedures into existing plant and operating processes. The safety procedures should not be compromised and need to be analysed before implementation. Guidelines Written guidelines should be produced and implemented for the MOC system. These should address roles, responsibilities, scope and activities. The procedures should incorporate technology, equipment, facilities, chemicals, health and safety, loss prevention, fire protection, temporary changes, acceptance testing, and verification testing. Request for change Establish a procedure for requesting and managing changes. Simple flow charts with accompanying written procedures will simplify the process and help to ensure implementation. The change process should allow for relevant reviews, actions and approvals before a change is implemented. References Fire Risk Assessment HM Government 2006 is a trading name of Insurance Limited (Registered Number 989421) and Syndicates Limited (Registered Number 729671) which are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Firm Reference Numbers: 202574 and 204909 respectively. The registered office of both companies is located at 20 Fenchurch Street, London EC3M 3BY. A member of the Association of British Insurers.