Process safety management

Process
safety
manage-
ment

Process Safety Management (PSM) is an important issue that affects the global petrochemical industry and serves as the first line of defense for companies and workers. The purpose of implementing PSM is to prevent or reduce catastrophic incidents involving toxic, reactive, flammable, or explosive chemicals leakage, among others. PSM consists of 14 principles that are voluntary, comprehensive, systematic, and continuous, focusing on the management of key processes in a facility. Compliance with regulations does not guarantee complete risk avoidance, so it is essential for facilities to incorporate critical equipment risk analysis. Therefore, maintaining Equipment Integrity (MI) is particularly important to understand the potential hazards of process equipment, assess the control and management of defense systems, and determine equipment classification. Having complete historical operational records and maintenance data allows for in-depth analysis, decision-making, and prediction from various perspectives, leading to improved equipment reliability, process line productivity, reduced maintenance hours, cost reduction, minimized equipment downtime, and extended equipment lifespan. In short, the main goal is to assess equipment availability in a cost-effective manner, ensuring equipment integrity and providing a safe working environment.

Our company is a traditional manufacturing company, and the frequency of equipment maintenance has been increasing. In order to maintain operational safety, a significant amount of time and resources are spent on inspection work and maintenance costs. In light of this, the group will analyze the advantages and disadvantages of domestic and international Computerized Maintenance Management Systems (CMMS), taking into account international standards such as ISO 55000, ISO 14224, EN 15341, EN 13306, and other relevant content. We will introduce Process Safety Management (PSM) and incorporate Equipment Integrity (MI) work items into the CMMS system. External experts will be commissioned to assist in the development and design of a comprehensive CMMS system that includes processes, fields, user-friendly interfaces, control, quantification, and collection of maintenance data. Through the use of "data-driven indicators," improvement goals will be made clear and tangible, and the best practices for factory operation and maintenance will be identified.

Note1:Process Safety Management (PSM).
Note2:Mechanical Integrity(MI).
Note3:Computerized Maintenance Management System(CMMS).
Note4:Vinyl Chain,which consists of three Plants : CGPC Toufen Main Plant, TVCM Linyuan Plant and CGPCP Linyuan Plant.

Major events in the promotion of process safety management

The introduction of Process Safety Management (PSM) at Vinyl Chain’s three plants was promoted under the support and supervision of senior management, with active participation and implementation by all relevant departments. To ensure the quality of system establishment and implementation, external consultants and their professional teams were engaged to provide guidance through industry–academia collaboration. This support covered the establishment of the PSM framework, the introduction of technical methodologies, and the enhancement of execution and management mechanisms. The project was advanced using a project management approach, with the implementation divided into four phases to be completed step by step according to the plan.

Promotion objectives and achievement results

Establish a management system that complies with the PSM and regulations, reduce the probability of equipment abnormalities, train personnel to take response measures, prevent disasters or obtain immediate control in the early phase to prevent expansion of incident, and ensure the safety and health of personnel inside and outside the plant to achieve sustainable business operations.

2025 Objective

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Optimization of PSM Audit Checklist:
By referencing domestic and international PSM standards and recommendations from authorities/committee members (including OSHA 1910.119, CCPS RBPS, API 581, the Industrial Development Bureau, and Science Park Administration committees), the Group optimized the content and key focus areas of the PSM audit checklist.

•

Cross-Plant Audits within the Group:
Since 2022, the Group has collaborated with BSI certification bodies and academic experts to conduct auditor training and established a Group PSM Audit Team to carry out peer plant visits and improvement follow-ups.

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Information Platform and Smart Applications:
A PSM information platform was established in alignment with the Industrial Development Bureau’s initiatives, promoting applications such as gas detection data analysis, image recognition, personnel positioning, equipment/pipeline monitoring, operations management platforms, and intelligent inspections. These efforts enhance safety, environmental protection, and fire emergency management effectiveness, supporting sustainable operations.
2025 Performance

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Completion of PSM Smart Management Platform:
The platform has been fully established, with workflows confirmed to meet the practical operational needs of each plant.

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Launch of Command Center Dashboard:
A command center dashboard was built, integrating an AI data analysis hub to provide anomaly detection and decision support. Edge computing was introduced to reduce system response time and improve early warning accuracy.

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Big Data Monitoring and AI-Assisted Auditing Applications:
Through big data monitoring, equipment anomalies can be detected in advance to reduce unexpected failures. AI-assisted auditing was introduced into contractor management to improve the efficiency of safety unit audits.

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Smart Technology Implementation in Cooperation with the Industrial Development Bureau (TVCM Linyuan Plant, CGPCP Linyuan Plant):
Six smart technologies were introduced—gas detection data analysis, image recognition of people/vehicles/environment, personnel anomaly recognition and positioning, equipment and pipeline monitoring, plant operations management platform, and intelligent inspection systems—to strengthen safety, environmental protection, and fire emergency management effectiveness, while supporting regulatory compliance and sustainability goals.

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Second-Phase Implementation in CGPC Processing Operations:
The second phase of PSM implementation has been completed, covering seven modules: equipment integrity, process safety information, worker participation, contractor management, hot work permits, incident investigation, and pre-startup safety reviews. Continuous rolling reviews and improvements are being carried out based on practical operational needs.
2026 Objective

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Enhancement of PSM Platform Functions：
Continuous optimization of the functions and performance of each PSM module.

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VCM Filling Island Detection and Interlock Protection System at TVCM Linyuan Plant：
Planned establishment of an AI intelligent detection system integrated with safety systems, setting multi-scenario alarms and automatic interlock protection mechanisms. Notifications are pushed via voice, LINE, and email to relevant personnel to enable immediate response.

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Third-Phase PSM Implementation in CGC Processing Operations
Planned promotion of modules including emergency response, process hazard analysis, trade secret management, and compliance audits.

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RBI Risk-Based Inspection System at TVCM Linyuan Plant
Developed jointly by the Group’s IT department and external consultants, targeting medium- and high-risk equipment and pipelines. A graded management mechanism is established to serve as the basis for annual inspection and maintenance planning.
2027 Objective
(Mid-term)

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Expansion of PSM Platform and RBI System Applications
Initially focused on TVCM as the primary implementation site, with plans to gradually extend to CGPC’s Main Plant and CGPCP applications by 2027.

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Continuous refinement of the Group’s PSM audit checklist, periodic execution of cross-plant PSM audits within the Group.
2030 Objective
(Long-term)

Each PSM work item complies with the Recognized And Generally Accepted Good Engineering Practices (RAGAGEP) to have a common language with international standards. Complete the following tasks:

(1)

Implement the PSM work as the company's work culture and language, and achieve feasibility

(2)

Based on the quantified results of the PSM KPIs, we enhance the key points of implementation and find the factory's own best management practices.

(3)

Refine PSM technology and keep up with international practices for a shared language.

(4)

CMMS systematically manages equipment, establishes the Group's reliability data, and keeps track of equipment status.

(5)

For PSM auditing work, regularly schedule audits and inspect the areas that need to be optimized and improved in the plant to achieve the PDCA cycle.

Key Initiatives for Promotion

Senior executives'commitment and support

The implementation of PSM (Process Safety Management) across the three Vinyl Chain plants is driven by the support and oversight of executive management, with active participation and rigorous execution across all relevant departments.

Our commitment:

Uphold and practice the 「Group Safety Philosophy」, giving top priority to employee safety in decision-making.
Support and lead by example in implementing various occupational safety regulations.
Continuously improve process enhancement to enhance process safety.
Systematic equipment integrity management.
Comply with domestic process safety management system establishment and operation, achieving regulatory compliance.
Eliminate the occurrence of catastrophic leaks of highly hazardous chemicals, and continuously optimize the process safety management system.

Regularly education and training sessions

In order to enable employees to understand the importance of PSM, review and establish labor participation programs so that they can fulfill their respective responsibilities in line with the principles of labor participation in the 14 items of the PSM. Arrange joint participation of employers and employees in the planning, development, implementation and improvement of safety programs in the Company, further achieving process safety management.

Academic Institution

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National Kaohsiung University of Science and Technology(NKUST)
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Chung Yuan Christian University(CYCU)

Government / Third-party organization

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Labor Inspection Agency
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Industrial Safety and Health Association(ISHA)
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Chinese Industrial Machinery Association
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Domestic fire department (Linyuan)

Industry Sharing & External Training

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British Standards Institution(BSI)
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DNV
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TUV Rheinland
☐

Chinese Petroleum Corporation(CPC)
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Valqua
☐

Schneider Electric

Internal Training

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GM of each plants
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The Group’s Chief engineer office
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The Group’s environmental division

PSM Auditor Training

In 2025, USI Group organized PSM Auditor Training, taking a leading position in the industry.USI group held the PSM training program that 60 people have obtained international certificates so far.

PSM Auditor Training

Group Practical Exercises and Sharing of Drill Outcomes

PSM Audit System

According to the Process Safety Assessment Procedure, OSHA 1910.119, and API 581, a total of 14 audit checklists for PSM have been established.

The results are presented using radar charts and bar charts to depict the performance of the 14 PSM principles.

Review and optimize audit items annually.

Conduct regular audits of the 14 PSM items annually.

Periodically review/revise process-related operating procedures

Process safety events have high-risk hazards in nature. Therefore, operation phases in addition to normal operations, such as emergency operations, should be considered, and corrective measures should be identified in advance for all deviations. Prepare operating procedures in writing can help us further understand the process, and Improve process safety for more efficient operations, thereby reducing downtime and improving quality.

Contractor management

In order to prevent contractors from having catastrophic leakage that leads to catastrophic incidents during the contract period, a series of management process and follow-up, such as contractor assessment, contractor agreement organization meeting, factory entry management, toolbox meeting, process overview of hazard notification, etc., should be carried out from the beginning.

Maintenance management system

A good basis leads to a good system

ISO 55000~55002 Asset Management
EN 13306 Maintenance terminology
ISO 14224 Petroleum, petrochemical and natural gas industries --Collection and exchange of reliability and maintenance data for equipment
EN 15341 Maintenance Key Performance Indicators
EN 16646 Maintenance within Asset Management

Participation in external activities

On November 29, 2024, the Park Management Bureau held a high-level symposium on the overall inspection of factories within the Linyuan Park. Promoting factory self-management - Setting a new benchmark for park safety

Regularly participate in PSM-related seminars and presentations held by government agencies/academia/third-party organizations, so as to learn about the best PSM practices from international factories and industry peers, and refine our in-house process safety management.