The Business Case for Electronic Permit to Work Systems: Beyond Safety
When considering the implementation of an electronic permit to work (ePTW) system, many organisations focus on the undeniable safety benefits compared to traditional paper based permit-to-work. However, the full value of ePTW systems extends far beyond safety. By significantly reducing operational costs, enhancing financial performance, and streamlining processes, ePTW systems present a compelling business case that can transform the efficiency and productivity of any organisation.
In this article, we explore how implementing an ePTW system can significantly reduce operational costs and enhance financial performance making such an investment a smart move for forward-thinking businesses.
Improved Efficiency and Productivity
An electronic permit system helps the responsible persons to create, approve, and track permits to work, reducing manual paperwork and associated delays. It streamlines the process of issuing permits, reducing wait times for maintenance and contractor personnel.
Resource Optimisation
An electronic safety system focused on permits typically integrates into a planned maintenance system, and allows for better planning and allocation of resources, optimising their use. It also prevents overlapping work and resource conflicts, reducing redundant activities and associated costs.
Enhanced Maintenance Management
An ePTW system improves the scheduling and execution of maintenance activities, reducing unplanned downtime and repair costs. It also facilitates predictive maintenance practices, extending the lifespan of equipment and reducing replacement costs.
Enhancements in maintenance planning and execution, coupled with an efficient permit-to-work process, decrease the frequency, duration, and scope of plant section shutdowns This increased efficiency minimises the energy used when re-energizing sections of the plant.
Compliance and Reduced Penalties
An ePTW system ensures compliance with safety regulations and standards with the ability to conduct risk assessments, reducing the risk of fines and legal penalties. It also maintains accurate records of all work permits, making compliance audits more straightforward and less time-consuming.
Reduced Administrative Burden
An ePTW system minimises paperwork and storage, directly lowering administrative costs. It also streamlines approval processes, saving time and reducing the administrative workload on operations management.
Indirect Benefits
The combined benefits above provide a strong business case. However, there are other indirect benefits where the quantum of savings is often of an order of magnitude greater:
- Reduced downtime: An ePTW system reduces the costs associated with interrupting production for maintenance. In a large factory or mine the operational costs of a disruptive shutdown are significant and go beyond just the lost production. Shutting down and starting up a plant reduces conversion efficiency, increases waste, creates off-spec product, disrupts the upstream and downstream supply chains, places a strain on materials management and more.
- Reduced incident costs: An ePTW system reduces operational risk, thereby reducing the frequency and severity of costly incidents.
- Enhanced reputation and customer trust: An improved safety record and consistent regulatory compliance enhances the company’s reputation and fosters customer trust.
- Improved employee morale and retention: A safer work environment and streamlined processes increase employee satisfaction and productivity, reducing turnover and associated costs.
- Operational resilience: Improved safety and compliance ensure smoother business continuity and aid in effective crisis management and recovery efforts.
- Innovation and continuous improvement: Access to comprehensive data and analytics allows for the continuous improvement of processes and adoption of industry best practices. Integration with other digital systems can drive further innovation and efficiency.
Conclusion
In conclusion, the benefits of implementing an ePTW system extend beyond safety to include reducing operational costs, direct productivity gains and indirect benefits such as improved morale, innovation, and reduced incident-related losses. The business case for implementing an ePTW system should easily exceed the financial hurdle for investments. For a structured framework to quantify these benefits and help you develop the business case for your own operation, consider Adapt IT’s white paper, “Building a Business Case for Electronic Permit to Work Software”.
