Every production practice has its positive or negative consequences. Cost Benefit Analysis (CBA) is a systematic approach of assessing the life-cycle costs and benefits of public or private projects. A proper cost and benefit analysis during the initial phase of the chemical processes is of the utmost importance for its successful realization. However, the methods available for evaluating a chemical plant are mostly based on an economic balance. In reality, every chemical process may involve job opportunity, environmental consequences, and other social effects. It is necessary to establish a framework for considering these costs and benefits so that decisions may be consistent with economical and social objectives.
Apart from realization of risk at the initial phases of a chemical process development, it should be understood that cost-benefit analysis from a process safety perspective also arises during the operation of a facility. To achieve excellence in process safety management is a continuous journey and requires understanding of the decision making process whereby the benefit of implementation of a proper PSM program will outweigh the costs.
CCPS identifies the criteria that separate the top performing companies from the rest by studying its member companies. The essential feature is the rigorous adoption of process safety philosophy. The summary of the industry wide study suggests that industry can be benefitted in four ways 1) Corporate Responsibility 2) Business Flexibility 3) Risk Reduction and 4) Sustained Value. Thus, process safety is essential in achieving excellence and increasing the profitability no matter the size of the company.
However, business decisions in the early phase of the projects are solely based on the economic analysis. For example, Cost Benefit Analysis (CBA) is a systematic approach of assessing the lifecycle costs and benefits of public or private projects. In reality, every chemical process may also involve factors such as creating job opportunity, damaging environment due to accidental events and various other technical and social effects. For the benefits of adopting rigorous process safety program, it is necessary to establish a framework for considering these benefits during the early economic analysis so that decisions may be consistent with economical and process safety objectives. However, proper tool to convert the benefits of process safety to equivalent monetary value is non-existent. The purpose of this research has been to conceptualize the value of process safety to evaluate technical and social advantages and disadvantages of a chemical plant.
List of Publications
- Hong, Yizhi, et al. “Supporting risk management decision making by converting linguistic graded qualitative risk matrices through interval type-2 fuzzy sets.” Process Safety and Environmental Protection 134 (2020): 308-322.
- Halim, S. Zohra, and M. Sam Mannan. “A Journey to Excellence in Process Safety Management.” Journal of loss prevention in the process industries 55 (2018): 71-79.
- Pasman, Hans J., William J. Rogers, and M. Sam Mannan. “How can we improve process hazard identification? What can accident investigation methods contribute and what other recent developments? A brief historical survey and a sketch of how to advance.” Journal of loss prevention in the process industries 55 (2018): 80-106.
- Kannan, Pranav, M. Sam Mannan, and Martin A. Wortman. “Risk Based Decision Making Methods for Evaluating Complex Technologies, a Comparative Analysis on Pipelines and Railroad for Crude Oil Transport.” 2017 Spring Meeting and 13th Global Congress on Process Safety. AIChE, 2017.
- Thiruvenkataswamy, Preetha, et al. “Safety and techno-economic analysis of ethylene technologies.” Journal of Loss Prevention in the Process Industries 39 (2016): 74-84.
- Chen, H., W.C. Pittman, L.C. Hatanaka, B.Z. Harding, A. Boussouf, D.A. Moore, J.A. Milke, and M.S. Mannan, “Integration of Process Safety Engineering and Fire Protection Engineering for Better Safety Performance,” Journal of Loss Prevention in the Process Industries, vol. 37, September 2015, pp. 74-81. https://www.sciencedirect.com/science/article/abs/pii/S0950423015300061
- Garcia-Sanchez, L.N., R. Vázquez-Román, C. Diaz-Ovalle and M.S. Mannan, “A Multiobjective-Driven Approach to Reduce Risk in Process Layouts,” Chemical Engineering Transactions, vol. 31, Part 2, 2013, pp. 643–648.
- Fang, J.S., M.S. Mannan, D.M. Ford, J. Logan, and A. Summers, “Value at Risk Perspective on Layers of Protection Analysis,” Transaction of the Institute of Chemical Engineers, Part B, Process Safety and Environmental Protection, vol. 85, no. B1, January 2007, pp. 81-87.
- Mannan, M.S., editor, Lees’ Loss Prevention for the Process Industries, vol. I-III, 3rd edition, Elsevier Butterworth-Heinemann, Burlington, Massachusetts, 2005.
- Whiteley, R.W., and M.S. Mannan, “Initial Perspectives on Process Threat Management,” Journal of Hazardous Materials, vol. 115, no. 1-3, November 2004, pp. 163-167.
- Fang, J.S., D.M. Ford, and M.S. Mannan, “Making the Business Case for Process Safety Using Value-at-Risk Concepts,” Journal of Hazardous Materials, vol. 115, no. 1-3, November 2004, pp. 17-26.
- Triplett, T.L, Y. Zhou, and M.S. Mannan, “Application of Chain of Events Analysis to Process Safety Management,” Process Safety Progress, vol. 23, no. 2, June 2004, pp. 132-135.
- Whiteley, J.R., M.S. Mannan, and S.J. Brouillard, “Process Threat Management,” Proceedings of the 6th Annual Mary Kay O’Connor Process Safety Center Symposium – Beyond Regulatory Compliance: Making Safety Second Nature, College Station, Texas, October 28-29, 2003, pp. 107-115.
- Gupta, J.P., G. Khemani, and M.S. Mannan, “Calculation of Fire & Explosion Index (F&EI) Value for the Dow Guide taking credit for the Loss Control Measures,” Journal of Loss Prevention in the Process Industries, vol. 16, no. 4, July 2003, pp. 235-241.
- Mannan, M.S., D. Hendershot and T.A. Kletz, “Fundamentals of Process Safety and Risk Management,” Encyclopedia of Chemical Processing and Design, ed. R.G. Anthony, vol. 69, Supplement 1, pp. 49-94, Marcel Dekker, Inc., New York, 2002.
- Mannan, M.S., J. Makris, and H.J. Overman, “Process Safety and Risk Management Regulations: Impact on Process Industry,” Encyclopedia of Chemical Processing and Design, ed. R.G. Anthony, vol. 69, Supplement 1, pp. 168-193, Marcel Dekker, Inc., New York, 2002.
- West, H.H. and M.S. Mannan, “Process Safety Management,” Instrument Engineers’ Handbook, 3rd edition, Editor-in-Chief: B.G. Liptak, pp. 182-191, CRC Press, Boca Raton, Florida, 2002.
- Szonntagh, E.L., H.H. West, and M.S. Mannan, “Purging and Inerting Systems,” Instrument Engineers’ Handbook, 3rd edition, Editor-in-Chief: B.G. Liptak, pp. 167-172, CRC Press, Boca Raton, Florida, 2002.
- Mannan, M.S. and D.A. Kilpatrick, “The Pros and Cons of Shelter-In-Place,” Process Safety Progress, vol. 19, no. 4, December 2000, pp. 210-218.
- Mannan, M.S., “Process Safety Management Begins and Ends With Process Knowledge and Documentation,” Proceedings of the 55th Annual Instrumentation Symposium, College Station, Texas, January 25-27, 2000.