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26 May 2011 ~ 0 Comments

Australia to heed safety standard deadlines

The European Commission has extended the deadline for the transition from standard EN 954-1 to standards EN ISO 13849-1 and EN/IEC 62061. Gary Milburn, Rockwell Automation Area Manager – Safety, explores the implications to Australia’s industrial community.

In recent times, the functionality of industrial machinery has advanced considerably. Industrial processes are being continually enhanced with more sophisticated PLC-based technologies capable of driving throughputs and product quality to levels never thought to be possible. As a result, the functional safety standards that govern the manufacture and safety rating of such machinery and their components are evolving to accommodate the latest technological advancements. Machine builders and component manufacturers must be vigilant, and remain up to speed with changes to performance requirements and the standards that specify them.

For Australian companies – especially those with export activities – of particular interest is the impending transition from EN 954-1: 1996 ‘Safety of Machinery, Safety related parts of control systems’, to the newer EN/ISO 13849-1: 2008
‘Safety of Machinery – Safety related parts of control systems’, and EN/IEC 62061: 2008 ‘Safety of machinery – Functional safety of electrical, electronic and programmable electric control systems’. Recently, the European Commission extended the three-year transition period out to five years, revising the deadline to conform to EN/ISO 13849-1 to 31 December 2011.

With the complete withdrawal of EN 954-1 now inevitable, its continued use alone is destined to become problematic in Europe and closer to home. The soon-to-be-superseded standard is not suitable for some of the more advanced technologies that are commonly used in modern machine-control applications and safety products. In fact, the impact of the impending switchover is now being felt, with many machine-specific (C type) standards already calling for compliance with EN/ISO 13849-1 and EN/IEC 62061, with no reference to EN 954-1. Importantly, this transition has implications reaching farther than in Europe alone – Australian machine builders and component manufacturers must also prepare.

Setting the standard
In order to plan a logical course through the transition to these new standards, it is important to realise that the change affects two fundamentally different user types: the designers of safety-related subsystems, such as controller and component manufacturers, and the designers of safety-related systems, such as machine builders. Soon – if not already – working to EN 954-1 will be considered unacceptable by both groups.

In contrast to EN 954-1, EN/ISO 13849-1 and EN/IEC 62061 have been structured to accommodate the design of more sophisticated safety control system applications. In fact, EN/ISO 13849-1 is fated to become the most commonly used standard for all machine safety control systems, including complete systems, subsystems or individual components.
Both EN/ISO 13849-1 and EN/IEC 62061 incorporate a ‘probability of failure’ assessment calculation – a feature lacking in EN 954-1. Here, a performance level (PL) is assigned once a range of requirements is satisfied.

These include:
reliability data for all system components; diagnostic coverage (DC) of the system; software requirements; and protection against common-cause failure and systematic faults. It is important to note that the Category rating system will be retained.
The new standards require control system designers to calculate the performance level of their safety circuits so that the safety-rated control systems provide adequate integrity. Product-specific functional data from component suppliers may then be used in conjunction with tools such as the SISTEMA Performance Level calculation tool from IFA (formerly BGIA – the Institute for Occupational Safety and Health of the German Social Accident Insurance) to confirm that the PL rating has been achieved. For Australian machine builders and component providers, the early adoption of these newer functional safety standards is likely to yield long-term benefits.

Attention exporters
At present, Australian industry has adopted standard AS 4024.1 2006 ‘Safety of Machinery’. However, like EN 954-1, AS 4024.1 does not incorporate a probabilistic component, or require the designation of a PL. While compliance with AS 4024.1 will suffice (for the time being) for machinery destined for local use, it is a different story for local machine builders and component manufacturers with European export operations, as well as those with export aspirations.

Even though compliance with EN 954-1 is technically acceptable until the end of 2011, overseas purchasers of Australia-made machinery are more likely to demand compliance with EN/ISO 13849-1 in order to future-proof their investments. If local machine builders and component manufacturers have not already implemented internal systems to comply with EN/ISO 13849-1, or begun this process, then international purchase orders may be lost.

Interestingly, ISO 13849-1 was published in 2006, which means machine builders and component manufacturers have already had four years to bring their systems up to speed. The recent time extension to comply with the new
standards indicates that a significant number of industrial businesses and machine type C standards were not yet in a position to comply by the original 31 December 2009 deadline.

Anecdotal evidence has suggested that complying with the new standard has comprised more work on its initial implementation than first anticipated. This is especially true for small- and medium-sized machine builders with limited resources. Here, machine builders are potentially required to change their processes and designs to satisfy the new requirements. As a result, it would be prudent of Australia-based businesses to learn from the oversight of some of their European colleagues and begin the process of complying with EN/ISO 13849-1 sooner rather than later.

Global opportunities
There is the very real potential for the requirements that are outlined in the EN/ISO 13849-1 standard to become those specified in the Australian marketplace. Furthermore, with electromechanical and electronic control systems converging at a rapid rate, and the adoption of a quantifiable methodology, it makes sense for such a global harmonisation of functional safety standards to take place.
However, in the ever-changing field of functional safety standards, many businesses do not have the resources to keep abreast of new requirements, let alone to execute them in a systematic way. While the adoption of EN/ISO 13849-1 and EN/IEC 62061 will throw up some challenges, it will also present a number of opportunities for enterprising Australian companies.

As it becomes more difficult and time consuming for end users to comply, it is likely that they will look to outside contractors and experts for assistance. This presents a business opportunity for companies in this industry, system integrators in particular. By upskilling and positioning themselves as experts in EN/ISO 13849-1 and EN/IEC 62061, system integrators can relieve the workload from machine builders and end users.

Additionally, enterprising solution providers will develop tools that will enable Australian machine builders to comply with these newer standards as soon as possible. Early adopters will not only move ahead of the competition and gain a competitive advantage, they will also help to better protect workers and machinery.

Rockwell Automation has created a library of its safety products and their associated functional safety data. Users can simply drag the product model number into the SISTEMA Performance Level calculation tool and verify PL ratings automatically, a time- and labour-saving innovation. Additionally, documentation produced by this calculation tool provides proof of due diligence of the safety-rated control system design.
To access this library of functional safety data, as well as other safety standard information and tools, visit the Rockwell Automation Safety Solutions portal at
http://discover.rockwellautomation.com/EN_Safety_Solutions.aspx

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26 May 2011 ~ 0 Comments

Liability laws damaging the economy

Liability laws damaging the economy, survey reveals

A recent survey conducted by the Australian Institute of Company Directors revealed that the burden of OHS laws imposing personal liability on directors is stifling business decision-making and having a serious detrimental impact on key aspects of corporate performance.

Business decision-making and strategic focus:


More than 90% of those surveyed said that personal liability of directors had an impact on
optimal business decision-making or outcomes.

65% said this risk of personal liability caused them or their board to take an overly cautious
approach to business decision-making, either frequently or occasionally. 17% said this
happened frequently and only 15% said it had no impact.

79% said they were concerned that the time their board devotes to compliance with
regulations detracts from them focusing on issues like enhancing corporate performance and
productivity.

More than 90% said they are concerned about lost time and opportunity costs for companies
defending actions brought as a result of automatic liability for directors under a wide range
of legislation.
Board recruitment and retention:


Almost a third said they had personally declined an offer of a directorship primarily due to
the risk of personal liability.

More than 22% said they had resigned from a position for that reason.

57% said they knew of other directors who had declined an offer of a directorship because
of liability risk.

52% knew of someone who had resigned from a board due to liability concerns.

Almost three quarters of aspiring directors said the risk of personal liability had made them
reconsider directorship as a career.
Lack of business judgment defences:


More than 73% believe there is a medium-to-high risk of directors being found personally
liable for business decisions they made in good faith.

54% thought there were no reasonable defences or ‘safe harbours’ for directors making
decisions in good faith – the so-called ‘business judgment rule’.

More than 64% said they were seriously concerned about being subject to criminal and civil
penalties as a director.

The survey involved 623 directors from ASX 200 companies, small and medium enterprises and not-for-profit organisations, from across the institute’s membership.

The survey results highlight the impact of personal liability for directors embodied in provisions in hundreds of pieces of legislation at the Commonwealth, state and territory levels. There are more than 700 state and territory laws alone which impose personal liability on individual directors for corporate misconduct. That is, directors are liable simply because they are a director, even where they may not have had any personal involvement in a breach.

Under some legislation, the onus of proof is reversed, removing the presumption of innocence, providing very narrow legal defences and limited rights of appeal.

“This survey, and the previous Federal Treasury survey of ASX 200 directors in 2008, highlights the damaging effect of director liability provisions on our economy,” said John Colvin, CEO of the Australian Institute of Company Directors. “The time, resources and money being taken up with dealing with the risk of personal liability for directors embodied in myriad pieces of legislation around the country is getting in the way of boards doing their real job: making good business decisions which lead to more investment and jobs for Australians.

“It’s also having a chilling effect on board recruitment and retention. The survey shows that the burden of legal risk being confronted by Australian directors is stopping qualified people from taking up board seats and causing others to leave through resignation or retirement.

“In this environment, the balance of risk and reward is so tilted that it’s not surprising that many experienced and highly qualified directors are asking – is it worth it?

“This is not just about directors’ self-interest. It is about everyone’s prosperity. By encouraging an overly cautious approach to decision-making, focusing directors’ minds excessively on risk- avoidance rather than on ways to add value, and by discouraging talented people from taking up or holding directorships, these laws stifle business. And that means they undermine our economy, capital investment and job creation.”

The survey respondents singled out OHS legislation, especially in NSW, as a cause of concern, saying these laws influenced decisions about the location of investment and restricted business activity in that state. The institute says that this highlights the need for the NSW Premier, Kristina Keneally, to reconsider her decision to reverse NSW’s commitment to OHS law reform as part of the national harmonisation of OHS legislation.

The institute strongly believes there is a need for a broad-based defence or ‘safe-harbour’ for directors, consistent across Commonwealth, state and territory laws. The defence would be available when directors make commercial decisions in good faith, having informed themselves about the subject matter and having acted in the best interests of the company.

If directors’ actions meet the criteria, they should not, with benefit of hindsight, be liable for errors of business judgment. Such law reform would enable the majority of directors, who carry out their duties diligently, to better focus on strategic decision-making, thereby enhancing company performance and economic prosperity more broadly.

The survey results also highlight the need for the Commonwealth and states to complete their legislative reviews to reform and harmonise laws on director liability after conducting audits of their legislation on the basis of benchmarks agreed by the Ministerial Council for Corporations.

However, Colvin comments that there appears to have been too little progress on this process, which has been given low priority by state and territory governments. He stated that this reform was urgently required.

http://www.safetysolutions.net.au/articles/44388-Liability-laws-damaging-the-econo… 25/11/2010

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26 May 2011 ~ 0 Comments

Beyond the Plateau…

Beyond the Plateau – The Impact of Individual Attitudes on Organisational Safety Performance
Prepared by: John P. Richards, CEO, Onetest E: jrichards@onetest.com.au P: 1300 137 937
Date: April 20th 2011

Beyond the Plateau

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26 May 2011 ~ 0 Comments

The Logistics of Military Operations…

The Logistics of Military Operations in Built-Up Areas OR Logistics in Support of Urban Operations
By Chris Catto-Smith, CEO of Freshport
Over the past month we have witnessed the appalling consequences and rapid escalation of urban warfare on the streets of Bangkok following an extended period of civil unrest…..

The Logistics of Military Operations in Built

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26 May 2011 ~ 0 Comments

Building a Culture of Safety…Nestle Campbellfield

Nestlé’s manufacturing plant in Campbellfield, Victoria, takes safety very seriously. It’s a culture that’s embraced and practised by every employee, from senior management to those on the shop floor and the company enjoys a good safety record as a result.
The plant’s Safety, Heath and Environment (SHE) Manager, John Roffey, points out that this didn’t come about by accident: “We constantly search for ways to improve safety and have always encouraged a proactive attitude towards it. We do have a good safety record, but we can’t afford to rest on it. We want safety to be a natural part of everyone’s work day. Safety hasn’t changed over the years. It’s the message that needs to evolve, so we’re more effective at practising it.”

Building a culture of safety

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26 May 2011 ~ 0 Comments

A farm system for supply chain and logisitics…

A Farm System for Supply Chain and Logistics: Preparing the Next Generation of Leaders
by Adrian Gonzalez
March 2nd, 2011

It’s hard to believe, with all the snow still covering our lawns and fields, that Little League season will soon begin. I am coaching again this year, and like every year, the season will begin with a group of kids, some who have played baseball before and others who are completely new to the game, that will run out with excitement onto the field and toss, catch, swing, and slide, until weeks later they are truly playing as a team, each kid a better and more knowledgeable baseball player than they were at the start…..

A Farm System for Supply Chain and Logistics (2)

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26 May 2011 ~ 0 Comments

Zero harm….

Zero harm – a slogan created for the CEO Commenting about his presentation ahead of the SIA’s Safety in Action conference in Melbourne, Andrew Douglas, Principal at Macpherson + Kelley Lawyers, said the language of safety and the importance of engaging with one’s workforce will be the only way to achieve the best in OHS.
He said: “Safety practitioners – as they move towards professionalism – have developed a language and style, just as lawyers have done in the past, which is meaningless to many of the people who have to operate it.”
Douglas believes that to achieve the best in OHS, employees must be engaged in and own the model being applied.
“The language of safety has become so impenetrable,” he said. “It would appear that workers have trouble keeping up with the new language around safety. Acronyms are in a constant state of revision and safety must find a new language which is understood by the people who work on the floor.
“In the last five years, there has been growth in OHS legislation, which imposes liability directly on directors and CEOs. These leaders are reaching out to safety. “The only way to get money out of a CEO for business that’s otherwise been ignored for OHS is to create a slogan that is appealing to the CEO. And we got ‘zero harm’. Yet without a definition of ‘zero harm’, the workforce is being disenfranchised.”
Employees know from life experience that the best-laid plans can still injure people. In his experience, Douglas has seen that workers in those environments totally distrust the management argument that ‘all injuries are preventable’.
“Leaders must lead honestly, with integrity and predictability, and it must be achievable,” he added. “In the instance of ‘zero harm’, it does not necessarily mean zero injuries.
“Leaders must admit this is an aspirational goal, that there will be real measurements at the floor level. They should grow ideas from the workers rather than imposing it from above.”
www.safetysolutions.net.au

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26 May 2011 ~ 0 Comments

Using risk assessments to avoid manual handling injuries.

 By: Karl Wisdon

Using risk assessments to avoid manual handling injuries.
The costs associated with work-related injury not only affect the worker, but also the employer and the whole community. Direct costs include medical expenses, legal costs and the cost of finding a replacement. Indirect costs include lost output due to reduced productivity, reduced staff morale as well as the administration of workers compensation claims…

Using risk assessment

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29 April 2011 ~ 0 Comments

An introduction to cloud computing

Companies around the world are paying much closer attention to cloud computing and its potential value to Supply Chain processes…

An introduction to cloud computing

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29 April 2011 ~ 0 Comments

Manufacturing industry update

The Manufacturing industry employed 1,005,000 people in 2008–09, representing 10% of the Australian workforce. Within this industry, 93% of workers were classed as employees and
were covered for workers’ compensation…

Manufacturing Industry Update

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