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Bahrain Petroleum Company (Bapco)

Bapco Case Study

Dr Mark Hodgkinson

Prelude

• To put our case study in context.

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Why OE? and What is OE?

• Why OE?

• Bapco Mission Execution =

• Sound Strategy

• +

• Operational Excellence (OE)

(Reference: WPC, Kaplan& Norton)

• What is OE?

• OE =

• A Robust OEMS

• +

• Operational Discipline (OD)

(Reference WPC, Dupont, Bapco)

“Always doing the right thing the right way.”

Therefore it is not surprising that OE is different for different missions

4Bapco Mission Execution = Sound Strategy + OE

Mission: Preserve/Protect Value

Continuously improvevalue

Create Value (Step Jump)

Typical OE Focus

Risk(Safety, Process Safety, Reliability, Costs)

Effectiveness Efficiency

Typical OE Parts

• Leadership Accountability• Operational Discipline• A Process Approach• A Structured top down C.I.

Process (PDCA )• Clear expectations for

critical processes.

• Leadership Systems Thinking• Policies, Standards and

Procedures published.• A Process Approach• Various or multiple C.I. tools

and programs.• Leveraged Management

Systems

• Entrepreneurial Leadership

• Discretion given to achieve results

• Calculated Risk Approach

• Individual and team innovation

• Reduce waste (Lean Six Sigma)

Our Results 2015:

• Our Results

• Record Personal Safety: Approaching 15 million person hours

without a lost time injury.

– 100% improvement

• Process Safety: 370 days without the Tier 1 Loss of containment

– 200% improvement

• Reliability: A record 384 days without a unplanned shutdown.

– 150% improvement

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Let’s look at the factors in this success.

The OEMS:

OE Management System

Leadership Accountability

Management System Process

AssessmentVision &

Objectives

PlanningLeadership

AccountabilityReview

Implementation

OE Expectations

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• Set an OE Vision

• Conduct gap Assessments

• Prioritize gaps

• Develop 3-year Plan

• Integrate into Business Plans

• Assign tasks and process roles

in PMP

• Implement OE plans

• Build or improve OE Processes

and Standards

• Regularly Review and measure

progress.

OEMS Journey

7

0

5

10

15

20

25

2011 2012 2013 2014 2015

Unsatisfactory (1)

Satisfactory (2-3)

At Best Pract, >=4

External Audit Results for OE

Bapco Case Study

• OE = A Robust OEMS + Operational

Discipline (OD)

• A Robust OEMS

– OE Fluency

• Concurrently building OD

– We have built a base..

• Osool Bapco

• Leadership Accountability

• Here is how we are moving on OD

– OD = Governance + Verification/Validation

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Governance

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Governance: Operational

• Performance of controls for Personal Safety, Process

Safety, Occupational Health/Hygiene, Environment

• Drill down to specific individual issues.

• Performance of controls for Maintenance and

Reliability

• Drill down to specific individual issues.

• Performance of controls for Optimization

Performance

• Drill down to specific individual issues.

• Performance of controls for Capital Project Status

• Drill down to specific individual issues.

• Performance of controls for Human factors Drill down

to specific individual issues.

• Drill down to specific individual issues.

Governance: A review activity. These are not problem solving meetings (e.g Area

Reliability Team meetings) and not planning meetings (e.g Priority Output).

Governance: Operational (2)

• Governance Report

• From XHQ via SSRS

– 15 Data Bases

• Automated Report

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Governance: Functional (Example EHS Committee)

• Personal Safety Processes

• Performance versus company targets

• Sub Organizational Performance.

• Process Safety Processes

• Performance versus company targets

• Sub Organizational Performance.

• Occupational Health Processes

• Performance versus company targets

• Sub Organizational Performance.

• Occupational Hygine Processes

• Performance versus company targets

• Sub Organizational Performance.

• Environmental Control Processes.

• Performance versus company targets

• Sub Organizational Performance.

Top Leadership+Subject Matter Experts• Personal Safety• Health• Process Safety• Environment• Compliance

Governance: Functional (Example EHS Committee) (2)

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Governance: Functional (Example EHS Committee) (3)

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Verification and Validation

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Verification and Validation

• What is V&V?

• Verification refers to checking that the right work is being done the right way.

– In Bapco it refers to the duties of Superintendents and Managers that ensure that (a)

Supervision is being carries out by first line supervisors to standard, (b) that the right

thing is being done the right way, always.

• Validation is conducted by Leaders one level higher than the leaders performing the

verification.

– In Bapco is the process where we validate that Verification processes are effective,

efficient and delivering business goals. It is intended to be personal process visible

to the workforce where the Leader goes two (2) or three (3) levels down to Validate

the findings of Verifications with front line employees.

• How do we perform V&V?

• PEI: Prepare, Engage and Instill: A method of targeted V&V’s concentrating on positive

feedback to instill OE culture.

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Verification and Validation

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Verification and Validation

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Verification and Validation

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Conclusion:

• OE = OEMS + OD

• OD = Governance + Verification/Validation

• Governance

– The adoption of Operational Excellence is accelerated by technology

assisted systematic governance.

– The technology already exist and can be easily leveraged

– Operational Governance needs to be efficient if it seeks to be effective in the

long term

– Operational Intelligence is key in the governance of a continuous process

like Refining or oil & gas production

• Verification and Validation

– Every day, there is likely some form of “constructive” audit or review

happening in a unit.

– Visible interest by leaders in the day to day rolls of the workforce

– Planned Positive Reinforcement works!