How to Build a Business Case for an Electronic Permit to Work System (ePTW)

Industries that depend on the productivity and reliability of high-value and complex assets for their success, like construction, energy, and manufacturing, have very specialized needs compared to other sectors. Often those needs are more complex, many times with much higher stakes around safety, compliance, and permitting.  

Permit to Work (PTW) systems are the bedrock of safety management. They assist with assessing risks before any work begins, facilitating communication between assessors and approvers, and monitoring activities once work commences. PTWs are essential to preventing accidents and ensuring all projects are completed smoothly, but traditional paper-based permit-to-work (PTW) processes can be error-prone, inefficient, costly, and difficult to manage.  

This has made way for the electronic Permit to Work (ePTW) system – a digital solution that streamlines procedures, enhances safety, and substantially improves efficiency and success. Often, decision makers are resistant to change, especially when it requires an overhaul of an entire system. This blog will detail how to make the case for adopting ePTWs – and how they are necessary for improving productivity, safety, and proficiency in frontline operations.  

Challenges with Traditional PTW Systems  

Paperwork 

Manual PTW operations are known for their excessive paperwork. Most on-site operations rely on a combination of paper forms and informal knowledge transfer between team members to navigate the permit-to-work practices in the field. 

A traditional PTW normally consists of three stages: the application, sending the document to the assessor, and the assessor sending the document to the approver to get the go-ahead. These stages take a significant amount of time, with the physical document having to travel back and forth between different people.  

The unending procession of forms and documents not only slows down the process but also introduces the risk of mistakes. Physical paperwork can easily get lost, damaged, or delayed. And it doesn’t end there; managing and storing physical documents can also become a cumbersome logistical challenge.  

On average, a standard PTW takes up more than 20 pieces of paper, which all add up, including daily checklists and tasks. And that number only equates to one daily project – imagine how much paper you’d end up wasting over time.    

Limited Visibility 

In the world of PTW, real-time visibility is often a pipe dream. Contractors on-site may need help accessing the latest permit status or amendments, causing confusion and potential disruptions. Manual systems make it difficult to track permit statuses, as these processes often require physical transportation of permits between departments or job sites. Subsequent communication delays and bottlenecks are common – and frustrating. 

Safety Concerns 

In established PTW systems, permits are often still administered by personnel in a physical permit office. Consider this scenario: A safety/maintenance manager is waiting for the approved permit so her team can begin work in a hazardous area. She is swiftly losing time and money every second her personnel must wait for the physical permit to arrive.   

Now imagine it does arrive – late – but there is a missing signature or similarly relevant component. The manager may cut corners and take risks so that her team can commence work. This type of scenario is dangerous because work permits are often directly tied to safety. If the permit required a signatory to confirm certain valves were shut off, skipping this step in scenarios like confined hot work means the risk becomes a life and death situation. 

Ensuring adherence to safety protocols, tracking compliance, and maintaining audit-ready records using traditional PTW is profoundly challenging. Incomplete or outdated records can also lead to non-compliance issues during regulatory audits. If all aspects of the process cannot be seen as they are happening, it’s virtually inevitable that these problems will begin to pile up.  

Benefits of ePTW Systems 

Increased Communication 

ePTW software offers extensive advantages compared to conventional, paper-based PTW systems. Businesses and organizations are increasingly digitizing their permit processes, largely in part because of the concrete benefits seen as a result of ePTW utilization. 

Getting the right information to the appropriate people at the right moment enables instantaneous authorizations and feedback without having to deal with latency issues or unplanned delays. A central database that is accessible from remote locations on any connected device (including your mobile phone) can be immediately updated and retrieved for all permit-related actions – including granting, copying, revoking, and closing permits. 

This kind of complete communication enables real-time updates on the status of permits and leads to greater collaboration simply because management and on-site workers can stay in touch.  You can receive immediate notifications and alerts, escalation reports, permit activity, and status updates using the correct chain of management. ePTWs allow you to track changes, like who is and is not signed onto the permit. 

Real-Time Monitoring  

Paper-based PTW systems can expose organizations to greater danger due to a lack of visibility into permit activities. 

EPTWs allow supervisors to monitor permitted activities as they happen and intervene where necessary. You can receive notifications and emails about approval requests and more, keeping you in the loop on all aspects of the Permit to Work process. Accidents can be avoided due to fast implementation.  

In addition, storing your data online versus on paper means you can track reports in real time; you can easily tell if something needs to be changed in your procedures and report activities. 

Heightened Safety and Compliance 

Safety is critical when it comes to environments where hazardous work is involved. According to The Bureau of Labor Statistics, in 2021, there was a total of 4,100,000 preventable workplace injuries, an 11% increase from 2020.  

This work must be carried out against pre-established safety protocols. ePTW structures incorporate integrated safety checks and approvals, greatly reducing the threat of accidents, as well as instant notifications to keep all stakeholders informed about permit statuses. 

Keeping track of compliance with safety protocols is made easy with ePTW. The methodology ensures that workers follow the necessary safety measures, which makes for a safer work environment. Additionally, ePTW simplifies the auditing process by maintaining precise and current records that can prove invaluable during regulatory inspections. 

Data Safety 

Electronic permits allow you to store your data more securely. Sensitive permit information is encrypted and only accessible to authorized users, unlike physical documents, which can end up misplaced, in the wrong hands, or completely lost. Additionally, ePTW can enforce data protection regulations through built-in security features. It provides a completely trackable audit trail, allowing review at any time. This helps organizations adhere to legal requirements and maintain compliance. This fortified compliance not only minimizes legal risks but also fosters a culture of safety and accountability among employees. 

Improved Overall Efficiency and Productivity 

One of the main differences between ePTW software and traditional PTW systems is the amount of time saved by going digital. Assuming 200 permits are created every month, the time spent processing permits comes to 60 hours (about 2 and a half days) per month, per operator. ePTW systems are a much quicker way of processing permits and reduce a lot of the delays that come with filing manual paperwork. 

These procedures introduce more effective functionality, efficiency, and compliance. In asset-heavy industries, a fast and comprehensive process is important to reduce the risk of injury or health hazards. Teams can collaborate seamlessly within the ePTW system, streamlining and speeding up approval cycles via automated workflows. 

ePTWs can adapt to changing organizational needs, too. Whether your company grows or diversifies, the operation remains scalable and flexible. The methods are designed to promote transparency and accountability in the workplace. By minimizing the risk of errors and providing accurate and up-to-date permit information, ePTW systems guarantee all supervisors and project managers can access permit information instantly. 

This enhanced communication helps prevent misunderstandings and enables prompt responses to any issues that arise. Additionally, using ePTW practices means that only authorized personnel with the necessary training and qualifications can access hazardous areas, markedly diminishing the threat of potential accidents and injuries. 

Cost Savings & Sustainability 

Implementing ePTW can bring substantial efficiency gains. This is because it eliminates paper-based processes, manual data entry, and the need for physical document storage.  

With ePTW, projects become leaner and more cost-effective. Permits can be generated, reviewed, and approved in real-time, which means reduced delays and bottlenecks. Efficiency gains translate to cost reductions when it comes to ePTW. Reduced paperwork means less printing and storage costs. And since productivity is boosted, faster processes mean more work gets done – which directly impacts the bottom line. 

When you think about the fact that work injury costs for 2021 totaled $167 billion (about $510 per person in the US) according to The Bureau Labor Statistics, it can get overwhelming quickly. ePermits ensure that work complies with exact standards outlined in a company’s environmental, health, and safety (EHS) policy. By integrating safety measures, organizations can reduce incidents and investigations, resulting in long-term cost savings. 

ePTW hard dollar savings:  

• Cost avoidance 
• Incidents and safety issue reduction 
• No paper requirements 
• Reduced system requirements 
• Increased revenue
• increased production 

ePTW soft dollar savings: 

• Efficiency 
• Less time spent writing and approving permits 
• Increased maintenance and wrench time

Manual PTWs offer no integration with other sources for efficiency: No templates, no copies, no work orders, etc. It doesn’t support shared work efficiencies, safety considerations, or multiple electronic point solutions. Conflict recognition may only happen in the field – if at all. 

Building a business case for an ePTW system involves emphasizing safety, efficiency, and cost-effectiveness. Consider your industry-specific requirements and demonstrate how this digital solution aligns with your organization’s goals. Evaluate all options to understand what your organization values and provide proper weighting on the return aspects that will appeal to leadership.  

By making the switch, asset-intensive industries can reduce risk, streamline operations, and improve overall performance. In order to make a strong and convincing business case for adopting ePTW, consider the following questions: 

• How many full-time employees do you currently have? 

• What is the average burdened rate for permit writers and/or admins? 

• How many permits, lock out tag outs (LOTOs), risk assessments, audits, etc., are needed per week?  

• How much time is spent per record? 

• What is the current cost of paper and software? 

• How much time is spent in shutdown, turnaround, & outage (STO) events? 

• What are the existing quantity and cost of incidents? 

• Is cost avoidance critical?  

• Does production lead to more revenue?  

• Is safety or efficiency a bigger concern? 

If you're considering making the move to ePTWs for your business, research is key and selecting a dependable software solution is critical. Remember, the jump from paper to digital isn’t just about convenience, it’s about safeguarding assets – and lives. 

For more information on our Electronic Permit Administration System (ePAS) solution – or how The Prometheus Group can help you build a business case for transitioning to an Electronic Permit to Work system, contact us today.