Chemical plant innovative safety investments decision-support methodology

IntroductionThis article examines the extent to which investing in safety during the creation of a new chemical installation proves profitable.MethodThe authors propose a management supporting cost-benefit model that identifies and evaluates investments in safety within a chemical company. This innovative model differentiates between serious accidents and less serious accidents, thus providing an authentic image of prevention-related costs and benefits. In classic cost-benefit analyses, which do not make such differentiations, only a rudimentary image of potential profitability resulting from investments in safety is obtained.ResultsThe resulting management conclusions that can be drawn from such classical analyses are of a very limited nature. The proposed model, however, is applied to a real case study and the proposed investments in safety at an appointed chemical installation are weighed against the estimated hypothetical benefits resulting from the preventive measures to be installed at the installation.ConclusionIn the case-study carried out in question, it would appear that the proposed prevention investments are justified.Impact on industrySuch an economic exercise may be very important to chemical corporations trying to (further) improve their safety investments.