Risk management in petrochemical plant

Abstract

The purpose of this research is to study the risks in petrochemical plant. The extended research on its characteristics will be necessary. The objectives of this research are to minimize and prevent the risks of a process unit in operation department of the case company. Preventive methods will also be recommended. Risk management team will be selected to evaluate the risks from selected production unit to be model unit. The considered process will be broken down into 3 processes. FMEA (Failure Mode and Effect Analysis) will be used to assess the risk sensitivity from 16 risks identified. Pareto analysis is also applied. The assessment of the RPN (Risk Priority Number) using Pareto Analysis shows that there are in total of 4 critical risks. The preventive actions can be organized, using linkage between each critical risk and its root cause. Three preventive actions would resolve the intensity of these risks to lower the RPN value of the critical risks. The results show that the RPN after applying preventive actions has reduced by 80-90% including the decreasing of the incident, cost of incident (COI) and loss production opportunity (LPO). The implementation results of the preventive action may not clearly indicate that the proposed actions significantly reduce the rate and financial impacts from incidents but with the additional preventive actions, incident can be tracked, identified and analyzed to reduce occurrence and probability and mitigate the consequences of incidents.