IDEA of a power station was analog If there was a gauge on the control panel you knew it was important Today a gas turbine comes with 600 sensors each one theoretically capable of transmitting data to a panel and trigger ing an alarm It s too much Perform alarm management reviews to ensure that alerts communicate only the important informa tion and signal the proper urgency If there s an alarm with a sound and light you ll know it s important Skills shortage You ve seen the reports about declining science technology engi neering and math STEM skills to the point that job opportunities in the United States outstrip qualified candidates The reports are real but the problem is global One of the teams at my company worked in South Africa where the skills shortage was espe cially dire The solution was to automate whatever could be automated That approach was great as long as everything in the plant ran smoothly But every time there was an exception it was a crisis This skills deficit is only worsening as millennials hop from job to job every year or two Succession plan ning is critical Uncertain authority Another team worked with a paper mill where a worker discovered a leak in a boiler tube that was allowing outside water in The worker reported the problem to the boiler operator who clearly should have shut down the boiler immediately Instead the operator reluctant to take an action he knew would affect revenue took time to con firm the leak himself then search for a super visor to bless his plan to shut down the boiler Although the worker technically had the authority to shut down the boiler he feared getting in trouble for disrupting the business While he was searching for the supervisor the boiler exploded shutting down the mill permanently putting 130 people out of work costing US 25 million in damage and leav ing customers in the lurch The operator was simply trying to keep his job This story does not describe a safety culture It describes a fearful culture one that ended up costing the company Bad habits The risk of operator error generally declines as operators gain experi ence Veteran operators however still need refresher training Like auto drivers they can sometimes develop habits and shortcuts that can lead to serious accidents The best training both initial and refresher tends to come in the form of what if scenarios i e simulated emergencies Financial executives must ensure that time and money are avail able to get this type of training done False economies Good financial execu tives cut costs Great financial executives understand when they re hitting bone In many cases it s sound practice to keep two industrial equipment operators on a shift when you could probably squeak by with one It s like flying a plane Although one pilot is typically enough a copilot is impor tant when needed Low functioning workers Everybody has bad days when they re sick depressed stressed out or tired For an office worker it s usually not a life or death concern For a plant or equipment operator it s worrisome Ensure your managers consider the health and well being of operators controlling major plant processes and machinery and have a process for replacing workers who aren t at their best Plant design Some plants seem almost designed to fail with critical processes lack ing safety controls and presenting operators with too many ways to make irreversible costly mistakes Other plants are designed for resilience resisting human errors through their processes and controls These better designs enable quick recovery if an error is made It s important to ensure that your plant is designed for resilience or if not is retrofitted that way Operator errors like the ones we ve mentioned here can t be completely elimi nated because people while often well intentioned will inevitably make mistakes But we as financial executives can take the time and make the necessary investment to create a safety culture that reduces risk pre vents business disruptions and fosters resil ience When we do that it s always good for the bottom line This article originally appeared in FEI Daily We as financial executives can take the time and make the necessary investment to create a safety culture that reduces risk prevents business disruptions and fosters resilience When we do that it s always good for the bottom line COMMON VULNERABILITIES Below are some of the most common contributors to operator error and costly business disruption 1 Information overload 2 Complexity 3 Skills shortage 4 Uncertain authority 5 Bad habits 6 False economies 7 Low functioning workers 8 Plant design ISSUE 1 2017 REASON 19

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