Lowering Risk – Field Inspections
We have a customer who required some consulting assistance this summer to make sure that they were compliant with safety and operations regulations for working on the site of a major oil and gas provider.
The items that they required for compliance were quite broad, ranging from safety to properly maintained equipment. While the standard items were quite straight forward, we educated the customer on where their true high risk potential really was.
Our customer was planning to operate 20 pieces of heavy equipment for a construction project on this site. They had a fairly common process in place with setting up and inspecting equipment utilizing paper forms that were filled out by each operator and gathered by the foreman at the end of every week to be sent to head office. This common process could have led to one of the worst possible outcomes for our customer.
Part of the site owner’s requirements was zero spillage of hazardous fluids and chemicals. If there was any occurrence of this, the project would be paused and the site owner’s local environmental team would be called in to investigate the impact and action to remedy the situation. Again, pretty standard stuff, so our customer’s plan was to make sure pails and bottles were properly stored and used to prevent issues.
What they did not think of was equipment failure. A leak or rupture from the hydraulic system would not only shut down a piece of equipment until repair, but the entire project would be suspended until the environmental team was satisfied. Since all 20 units were operating in the same area, it would all get shut down. We calculated the math on this and estimated that it would cost our customer a bit over $60,000 per day for one incident, excluding the costs they would incur for the cleanup itself.
How did we mitigate this? We recommended that instead of inspections getting reviewed 2 weeks after they were taken that we implement a technological solution. The LPlus remote inspection application allowed for instantaneous notification and reaction to small problems before they turn into large ones. For example, a simple weeping hydraulic hose is not leaking enough to cause a problem in itself, but left unchecked for a couple of weeks, it has a definite risk of splitting and causing a major environmental problem.
The cost to the customer? $0. LPlus is a free application for our GPS tracking customers. Its quicker and easier than the paper process and catches errors the user is making during the process, not 2 weeks later.
This customer reported no problems during this project. While we can’t necessarily take some or any of the credit for this, we did minimize their risk and let them focus on getting the job done on time and on budget.
Contact us to learn more about LPlus and Latium’s diverse technology solutions.