January 9, 2011

Purse String Management Vs PSM

Purse Strings Management (PSM!) has a direct effect on the management of process safety. Controlling costs is important for a company to achieve profitability. But the question that arises is - at what point does it stop? For example - maintenance budgets - how should they be allocated? Money required to keep equipment in running condition is one thing but how about money to assess residual life and scheduling replacements? A distinct trend in chemical process industries is the high turnover of personnel, even at the top management level. This has a direct effect on the amount of effort that a manufacturing head will take to ensure that money required for process safety issues is budgeted and spent. I am observing a dangerous trend of maintenance budgets not paying heed to process safety issues in many companies. Wake up before it is too late!
Many articles blame it on "poor culture". I would say it in one sentence "short term gains overriding process safety". No amount of behavioural change programs will help unless some one at the top is in a position to understand and recognise the risks that a chemical industry faces. The truth is bitter!

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