Prepared for Sipchem - DRAFT - Responsible Care Implementation The Sipchem Story

Prepared for Sipchem

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Responsible Care ImplementationThe Sipchem Story


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Purpose:Sipchem aims to be a responsible, innovative and globally recognized petrochemical company providing competitive and quality products to satisfy our customers, motivate our employees and meet Shareholders' expectations. Values: Adhere to highest ethical standards, embracing

integrity, trust and taking responsibility for Sipchem's actions.

Strive for operation excellence in delivering products and services.

Embrace innovation and adapt to changing conditions.

Care for the well being of Sipchem's employees, community and environment.

Purpose & Values


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Sipchem Responsible Care and Quality Policy


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Sipchem December 2001

25 employees

Grass Roots Plants

Grass Roots Company

No policies, No standards, No procedures…. just a vision

We Started with a blank Sheet of Paper, Industry Standards and

Experienced Leaders

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Responsible Care Journey

2003

Systems Needed for a Safe Startup

PSSR

Permit to Work

Emergency Response

MOC

2004

High Priority Systems implemented

Commissioned Methanol Plant ahead of schedule No Process

Safety Incident No Safety

Incident

2005

PSM Vision Achieve World

Class PSM Performance through: Operational

Discipline Line

Management Responsibility

Employee Participation

Use the OSHA PSM Standard as guide In house

development Build &

Reinforce on existing systems

2006

Quality and Environmental Vision

Integrate Quality and Environmental initiatives.Achieving; Continual

improvements International

Standard Recognition thru ISO 9001 and 14001 certification

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Linkage between the three Silos not well defined No formal procedures/system for;

Distribution Product Stewardship Community Awareness & Emergency Response outside the fence

Sipchem Management Systems in 2010 Before Integration & Transformation

Process Safety Management

(Included “Employee Health & Safety”)

Quality and Environmental

Management SystemSecurity Procedures

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Documentation Structure

Defined the Document Hierarchy

Established guidelines for Sipchem PSM Management System Standards Written in the end

state Included Element KPI’s Established review &

Approval Process

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Integration and Transformation


Quality and Environmental

Management SystemSecurity Procedures

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Security Procedures


Quality and Environmental Management

System


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Responsible Care and Quality Management System “Roadmap”

Security

CAER Distribution

Sipchem Management System in 2011 After Integration & Transformation

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Security PSM QEMS

CAER

PSMQEMSProduct

Stewardship

Distribution Product Stewardship

Responsible Care and Quality Management System Policy Statement

Employee Health & Safety

Employee Health & Safety


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Documentation Structure

Defined the Document Hierarchy

Established guidelines for Sipchem Responsible Care and Quality Management System Standards Written in the end

state Established review &

Approval Process

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Strategic Goals

Objectives& Policies

Management System Standards

Technical StandardsFunctional Standards

Departmental Work Processes, Departmental Functional Procedures

Work Instructions

Records

Level 1

Level 2

Level 3

Level 4

Figure 1

Gui

de L

ines

Corporate Work Processes, Corporate Functional Procedures


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How did we do it? Where did we start?

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Commitment by CEO Appointment of Responsible Care Manager and full

time Responsible Care Coordinator Appointment of Executive to GPCA Responsible Care

Committee Capital funding made available “World Renowned” consultants utilized


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Management of Change Process Implemented:

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Executive Sponsors and Subject Matter Experts (SMEs) identified for Codes and GAP analysis completed

EH&S Committee redesign ----Over 100 employees directly involved

Selection and use of SME Consultants to help close specific GAPS

New Committees formed to address Gaps Integration Process Launched with focus on RC&QM

Roadmap Development with New Standards / Procedures

Build on Deputy Management Representative (DMR) organization created for QEMS

Training Communication, Communication, Communication


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Roadmap and Scope of Document Changes

Management System Structure New Revised Minor / Major Impacts

General 0 0 Minor No or little

Policy 1 0 Major All Employees

Aspects and Impacts 1 1 Major Responsible Care and Affiliate DMRs

Legal and other requirements 1 1 Major Responsible Care and Affiliate DMRs

Objectives and Targets 0 0 N/A No or little

Roles and Responsibilities 2 0 Minor Responsible Care, Distribution and DMRs

Training 0 1 Minor No or little

Communications 0 2 Major Responsible Care

Documentation 0 1 Major DMRs and Management

Control of Documents 1 0 Major All Employees

Operational Control 6 1 Major Procurement, Distribution and Responsible Care

Emergency Response 1 1 Minor Responsible Care

Monitoring and Measurement 1 0 Minor Responsible Care

Compliance Evaluation 0 0 Minor No or Little

Nonconformance’s 0 1 Major Responsible Care, Distribution and DMRs

Record Management 0 1 Minor Responsible Care and Affiliate DMRs

Internal Audit 0 1 Major Responsible Care and Affiliate DMRs

Management Review 0 1 Minor Management, Responsible Care and Affiliate DMRs

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Audit Strategy Developed

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Implemented an Integrated Internal Audit Process Auditor Training

PSM Auditor QEMS Auditor RC14001 Auditor

Bundled certifications with single registrar Minimum 5 years experience required for

RC14001 Lead Auditor


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New Responsible Care and Quality Management Documents

Policy Statement Responsible Care and Quality Policy Statement

Standards Development and Control of Management System

Documents Responsible Care and Quality Roles and Responsibilities Product Stewardship Commercial Partner Standard (Procurement)

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New Responsible Care and Quality Management Documents

Nine Distribution Safety Standards

Sipchem Distribution Safety Management System

Distribution Safety Roles and Responsibilities

Distribution Risk Management

Complying with Distribution Safety Regulations

Securing Chemicals in the Distribution Chain

Chemical Handling in the Distribution Chain

Selection and Management of Distribution Service Providers

Preparation and Response to Distribution Incidents

Managing Chemical Deliveries and Customer Provided Transportation

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General Orientation and Specific Training

Executive Team Orientation – 30 minute overview/refresher plus reading materials

General Orientation included in Corporate Safety meeting materials – Mandatory for all Departments and Employees ….Approximately 1 hour

“Inside the Fence Line” Specific training - 12 revised standards and 4 new Standards – Mandatory for DMRs and Managers …..1/2 day.

Distribution Safety Specific training - 9 new standards – Mandatory for Distribution functions, Marketing, Procurement, Responsible Care, Security, Training and Public Relations / Communications

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Areas Improved in 2012

Awareness of Aspects & Impacts Management ownership and support Affiliates and departments participation Monitoring and reporting

Monitoring and Measurement Standard Employee reporting

Stakeholders communications Distribution, Product Stewardship and Care Codes System improvement such as SAP-EHS & Stature

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Focus Areas for 2013

Cascading of objectives/targets and action planning by functional areas

Audit program improvements including RCA and corrective action planning

Monitoring and measurements – Inspection, test, and PM programs for Safety and PSM equipment

Compliance with procedures Emphasis on accountability for RC&Q Management

from Executives down to employees Use of leading indicators such as CAMEL

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Thank You