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You come across a stress wrapper that is locked out. You see two employees working on it with their hands point of operations.. What should or should not be done?
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If the system is locked out, they are protected. If you are not authorized for the task they are performing, you should not interfere, attempt to restart the mahine, or remove any locks or tags.
If they are authorized LOTO users and both have control of the power to the system and residual power was removed as part of the LOTO process...I don't believe anything would need to be done since they would be following typical practices for LOTO.
This is not a robot. A general statement about lock-out: If a machine is locked-out in accordance with OSHA 1910.147, work can be done with hands in the point of operation. However keep in mind that compliance with lock-out means that all sources of hazardous energy have been released and/or contained and secured such that there are no hazards due to hazardous energy and its affects (including movements). As previously answered (I see Shawn Mozzani's response below), additionally these people would be both trained and authorized for this activity.
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