Thinking beyond Compliance – a minimum standard

Owner‘s and operators of asset-intensive infrastructure understandably look for decades of safe and reliable operation.. History shows clearly how industrial disasters potentially cause immense damage to the environment, the economy and can be deeply harmful to a businesses long-term reputation.

There is, put simply, a lot of risk here yet our modern, sophisticated and complex world often looks in isolation toward the traditional compliance “stamp of regulatory approval” model as the sole answer to meet and answer the needs of high-risk, asset-intensive industries. Yet compliance to regulatory code approval whilst being integral to safety and reliability is within itself far from a satisfactory end result.. What is needed is a broader view and a change in perception by buyers and sellers that allows us to leverage compliance to code services into solutions that enhance the safety, reliability and sustainability of supply chains. Compliance that act as support for sustainable business growth rather than that of a policing tool that brings with it little added value.

Yes change does not come easily. Response to changes affects all and it is therefore necessary that both buyers and manufacturers be alert and flexible in making changes to their own specifications and practises. Doing this alone drains resources and induces bouts of nerviness in stakeholders. If we take an example of sub sea equipment manufacture, the production is an assembly line with a number of manufacturing entities contributing, as a team to the process and, as with any team, a successful end game depends on an effective contribution by all. For sub sea equipment, as we have seen in the USA regulations change quickly - as a result of events - and there has been overall industry acknowledgment that these regulations needed to address in the whole, as well as in individual parts.

Authorised certification providers I suggest therefore need to respond in supporting their clients , both buyers and sellers , by being pro active in change drawing on the experience from colleagues working through other parts of the component life cycle, eg: in the through-life operational stage. At Lloyd’s Register, in the case of change to sub sea regulations, we consult with and offer advice from other LR entities. For example LR ModuSpec who have unrivalled deep sub sea domain expertise and LR Scandpower who have the capability to look at a project’s risks upfront, in a balanced model-based way.

In conclusion for owners and operators, reliable and therefore safe through-life operation starts by assessing needs and associated risks, specifying, designing and then ensuring correct build and commissioning.. At Lloyds Register we advocate your chosen third party service provider takes a proactive role working with you through the build stages developing regulatory minimums into complete business solutions that best serve your needs and deliver stakeholder confidence. e.g. At the manufacturing stage we identify the greatest supply-chain challenges and focus our support on establishing effective methodologies to help mitigate key risks. Manufacturers, as vendors, you face enormous pressures to meet deadlines, with costly penalties for non-delivery to specification. You succeed or fail on the quality of the service you provide, as well as the quality of the components and equipment you make. This is especially true in a tough financial climate. At Lloyds Register we recommend your service provider should work closely with you to improve reliability across your own supply chains. Vendors and suppliers turn to us to interpret their contractual obligations; to marry universal regulatory demands with local requirements; to build positive brand images that fit today’s corporate social responsibility agenda. In my own company through our long history and experience spanning more than 250 years we take immense pride in having seen many, many manufacturing clients grow from start-up ventures to world leaders.

This success can only be achieved by thinking beyond compliance.

Robin Pickup, Global Leader, Manufacturing, Lloyd’s Register