Safety of Machinery and Special Scheme of Inspection’s Requirement towards Industry Competitiveness in Malaysia

Abstract

The amendment of the Factories and Machinery Act 1967 (FMA) in 2006, with the inclusion of the new provision on special scheme of inspection takes into account of the development and advancement of technology, particularly on the latest procedure of inspection of plant and machinery in the Malaysian industries. The FMA since 1967 is the safety at work legislation applicable in Malaysia that provides for the control of factories with respect to matters relating to safety, health and welfare of person therein, the registration and inspection of machinery and for matters connected therewith. Inclusion of such provision provides an option to the industry to conduct its special scheme of inspection that analyzes the likelihood of failure and the consequence of the same in its work. This is obviously important for the economic benefits as the implementation of the scheme safeguards the integrity of the plant that will eventually increase the industry productivity and competitiveness. This paper discusses the importance of the inclusion of the special scheme of inspection provision into the statute and how it regulates the implementation of the system in the light of the development of technology in the industry. Analysis was made based on the latest legal documentation enforced relating to special scheme of inspection and with the coming into force of the Factories and Machinery (Special Scheme of Inspection) (Risk-Based Inspection) Regulations on June 1, 2014, the provision under the Factories and Machinery (Amendment) Act 2006 on special scheme of inspection shall now be fully implemented to see the effectiveness of the inspection approach for plant equipment using 'risks analysis'.

Implementing risk‐based inspection approach: Is it beneficial for pressure equipment in Malaysia industries?

“…In that paper, it has been demonstrated that the application of RBI plans for four fixed offshore structures had led to a reduction of one to several million US$ in the total expected cost of inspection. The finding of seems to share the same opinion as they reported that RBI provides economic benefits in terms of fewer inspections, a minimum duration of shutdowns, longer run length, and less frequent shutdowns. Ref.…”

“…They are: (a) RBI is a cost‐effective program; (b) RBI would increase the effectiveness and profitability of the business; (c) RBI is a safe operation; (d) RBI is an environmentally friendly operation; (e) RBI could increase reliability of process machinery; and (f) RBI is easy to manage. These benefits are established based on the benefits reported in the literature review –, –, . Items (a), (b), (c), and (d) are market‐related benefits, while items (e) and (f) are benefits related to effective operation and improvement of internal procedures.…”

“…reported that RBI plans ensure that the acceptance criteria with respect to risk are fulfilled therefore it ensures that the organizations maintain licensing permits and avoid shutdowns due to regulatory noncompliance . RBI also being referred as a paradigm shifts and as a technique used to reduce direct inspection costs for genuine cost saving . Application of RBI moves the plant maintenance regime from reactive to proactive.…”