Revisiting plant inventory
Many chemical plants, especially
those built in the last millennium, carry far too much inventory. This excess
baggage harks back to the pre-computer and pre-Internet era when supply chain
management practices, as we know them today, were not prevalent. Online
procurement now has done away with time consuming paperwork and approvals. RFID
tracking of shipment has reduced uncertainties. Logistics planning, optimised
shipping methods and routes, synergy with suppliers etc helps the industry to
prune down the inventory. Inventory reduction not only brings down the operating
expenses significantly, but is a giant step towards improving plant safety.
Consider what happened during
Harvey. Nearly half a million gallons of gasoline spilled out from just two
tanks owned by one of the largest pipeline operators. The exact cause of the
leak is still under investigation. The pounding rainfall also reportedly sank
floating roofs of at least a dozen large storage tanks leading to leaks. At
least two dozen storage tanks holding various refinery materials have collapsed
spewing out carcinogenic aromatics – Benzene, Toluene and Xylene. API standards
mandate that floating roofs should be designed to withstand a rainfall of 250
mm in 24 hours. Harvey brought more than double that rain. Perhaps on
hindsight, we need to redesign and strengthen floating roof tanks for a higher
rate of rainfall. It will most certainly add to the cost, but would be a small
price to pay for protecting the environment. Increased frequency of inspection,
maintenance and structural audit of large storage tanks should also help. Clearly
storage tanks bore the brunt of the storm surge. The damage would have been
less with reduced inventory.
It must be mentioned here that
some refineries were able to increase the levels in their storage tanks during
the build-up to Harvey. This made the tanks less buoyant and less vulnerable to
floating when the water swamped the tank farm.
Labels: Accident, Chemical Industry, Hurricane Harvey, Industrial Safety, Plant Safety, Safety, Safety Lessons