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How can you leverage cost-saving measures without sacrificing safety standards in plant engineering projects?

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In plant engineering, balancing cost-saving measures with unwavering safety standards is a critical challenge. You must ensure the integrity of the plant's operations while efficiently managing resources. This delicate balance requires strategic planning and a deep understanding of both engineering principles and safety protocols. By exploring innovative solutions and leveraging technology, you can reduce expenditures without compromising the safety of your plant's workforce or the surrounding environment. The key is to prioritize safety while identifying areas where costs can be optimized without causing any detrimental effects to the plant's overall functionality and compliance with safety regulations.

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1 Optimize Design

In the initial stages of a plant engineering project, optimizing the design can lead to significant cost savings. By utilizing advanced simulation software, you can identify potential issues before construction begins, minimizing the need for expensive corrections later on. Modular design principles can also be applied, allowing for prefabrication of components which often reduces labor costs and construction time. All these measures must be balanced with a rigorous adherence to safety standards, ensuring that the optimized design does not overlook any critical safety features or compliance requirements.

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Temo González Chípuli, BSc. ChE

Channel Sales Manager, AIChE member
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Allow me to quote Dr. Trevor Kletz: “There’s an old saying that if you think safety is expensive, try an accident." “Accidents cost a lot of money. And, not only in damage to plant and in claims for injury, but also in the loss of the company’s reputation.” “For a long time, people were saying that most accidents were due to human error, and this is true in a sense but it’s not very helpful. It’s a bit like saying that falls are due to gravity.” In my opinion, design should be based on performance not on local regulations. Many countries/local regulations do not "mandate" enough to prevent catastrophic accidents from happening (and reoccurring periodically). Companies should implement the highest level of safety standards as reasonable.

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Frank Hamilton

LNG SME, Production Engineer, Design, Commissioning and Operations
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Permits are crucial, and can be double-checked by a safety officer for PPE, tools, area control, supervision. Permits are an intrinsic means of work control, not a document to be issued and passed over, and should be active or re-issued for no longer than a shift. The panel operators and the supervisor are all responsible multiply, since area crossover occurs, and oversight is often multiple and can be coordinated. Two eyes on the job.

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Ashutosh Nischal

Senior Director, Business Portfolio-Low Carbon Energy, USW and CCUS Americas Coordinator at Worley
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Like others have stated, safety in design, construction and operations doesn't add to cost. This is a misconception in the industry. Good safety measures, practices and guidelines are honed to ensure optimization and standardization that when repeatedly implemented helps drive cost efficiency. The cost of compromising on safety has severe consequences no one wishes to work with in the industry. Not only do accidents cause irreparable losses but transient incidents, failures, off course and inefficient operations lead to loss of production, that essentially adds increased operating cost.

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Hasan Dreegia

Retired Lead Design Process Engineer
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In addition to conducting HSZOP studies at various stages of the project, it is equally important to carry out other HSE studies such as HAZID (Hazard Identification), QRA (Quantitatve Risk Assessment), EIA (Environmental Impact Assessment), and SIL (Sfety Integrity Level). The recommendations of all these pivotal should be closely followed-up to ensure implementation in the constructed project to ensure having a safely operating plant in which all potential risks are mitigated for the ultimate protection of operating personnel, plant equipment and the environment.

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Frank Hamilton

LNG SME, Production Engineer, Design, Commissioning and Operations
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The old paradigm of a continuum of trade-off between Quality, Schedule, and Cost has been replaced by "Driving Quality draws Schedule and Cost" with it. In start-ups especially, when there are so many unexpected tasks to be done and when there are areas of construction and areas under hydrocarbon, it helps schedule and reduces risk to equipment and personnel if the tasks are defined in small areas for shorter times, the areas for any task limited and contained, the control of work organized from the Control Room, and mapped. The permitting section must subordinate to the Control Room, the Operations Supervisor in control, and the tasks mapped electronically and dynamically.

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2 Streamline Processes

Streamlining processes within plant engineering projects can result in cost reductions while maintaining safety standards. Lean manufacturing techniques, such as value stream mapping, can help you identify and eliminate waste in processes, from procurement to production. Regular maintenance schedules and equipment upgrades can prevent costly downtime and accidents. By fostering a culture of continuous improvement, you encourage your team to seek out efficiencies in every aspect of operation, without sacrificing the high safety standards that protect personnel and equipment.

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3 Invest Wisely

Investing wisely in high-quality materials and equipment can save costs in the long run and enhance safety. While initial expenses may be higher, durable materials and reliable equipment reduce maintenance needs and the likelihood of failures that can lead to unsafe conditions. Selecting suppliers with strong safety records and investing in employee training on the proper use of equipment are also crucial. This approach not only ensures a safer workplace but also minimizes the potential for costly disruptions and repairs.

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4 Utilize Technology

Technology plays a pivotal role in cost-saving measures without compromising safety in plant engineering. Automation can reduce labor costs and minimize human error, which is often a significant factor in workplace accidents. Predictive maintenance, enabled by sensors and data analytics, allows for timely servicing of machinery before breakdowns occur, ensuring safe operations and avoiding expensive emergency repairs. While integrating new technologies, it is essential to provide thorough training to ensure that all employees can operate safely within a technologically advanced environment.

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5 Engage Staff

Engaging your staff in safety and cost-saving initiatives is crucial. Incentivizing employees to participate in safety programs and suggest cost-cutting ideas can lead to a more invested workforce. Empowering staff with responsibility for safety can improve compliance and performance. Training programs that highlight the financial benefits of safety can also inspire staff to look for innovative ways to save money without cutting corners on safety protocols, leading to a more efficient and secure plant environment.

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6 Review Regularly

Regular reviews of plant operations are essential to ensure that cost-saving measures do not negatively impact safety standards. By conducting audits and inspections, you can assess whether cost-cutting initiatives have inadvertently introduced new risks. This ongoing evaluation allows for the adjustment of strategies to better align with both financial objectives and safety requirements. Continuous monitoring and feedback mechanisms are vital to maintaining a culture where safety is never compromised for the sake of reducing expenses.

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How can you leverage cost-saving measures without sacrificing safety standards in plant engineering projects?

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1 Optimize Design

2 Streamline Processes

3 Invest Wisely

4 Utilize Technology

5 Engage Staff

6 Review Regularly

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