BP Standard - CMS Master Document

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CommonMaintenance Strate



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bp Common Maintenance StrategyRevision Date: April 1, 2003

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bp – Common Maintenance Strategy

Table of Contents

Introduction

Introduction

Reliability Culture

Asset Management

Key Performance Indicators (KPIs)

Assessments

CMS Elements

Leadership and Organization

Facility AvailabilityWork Management

Materials Management

Change Management

Continuous Improvement

CMS Processes and Tools

Computerized Maintenance Management System (CMMS)

Knowledge Management

Equipment Specific Maintenance Plan/Reliability Centered Maintenance(ESMP/RCM)

Defect Elimination Program

Condition Monitoring and Process Data Collection

Data Analysis

Operator Performed Maintenance

Planning and Scheduling

Spare Parts Management

Supply Chain Management

Quality Assurance and Precision Maintenance Program

Risk Based Inspection (RBI)Generic Equipment Maintenance Strategies

Campaign Maintenance

Redeploy and Optimize Staffing



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Roles, Accountabilities, and Deliverables

Common Maintenance Strategy for New Projects

Capital Value Process for Turnarounds (CVP-TAR)

Related Processes and Tools

Succession Planning

TeamShare

Performance Evaluation (myPerformance)

Training Program (Competency On Line)

Health, Safety, and Environment (gHSEr)

Process Safety Integrity Management (PSIM)

Choke Model

Operations Value Process (OVP)

Capital Value Process (CVP)

Appendices

A. Assessments

B. Success Stories

C. Key Performance Indicators (KPIs)

D. Glossary of Terms



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Introduction






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19 CMS Processes

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• Leadership andOrganization

• Facility Availability

• Work Management

• Materials Management• Change Management

• Continuous

Improvement

• Increase Productionand Operating

Efficiency• Lower Unit Operating

Costs• Improve Integrity

Management

• Engaged andCompetent Workforce


II. Reliability Culture

“Every man's ability may be strengthened or increased by culture.”John Abbott (1821–1893) Prime Minister of Canada

bp has increasingly searched for a competitive advantage; maintenance

and reliability of assets have evolved as major contributors. As anorganization, bp is being challenged to improve work efficiency. Over theyears many initiatives have taken small steps toward achieving

competitive advantage; these initiatives have resulted progress towardenhanced reliability of assets, but, to achieve world-class performance, afundamental shift in the mindset of workers and the nature of work is

needed. A holistic and evergreen approach to asset management processes provides the capability to change the nature of work and drive a reliability-

centered culture. This is the true underpinning of the GO initiative. TheOperations Excellence (OE) GO Team objective is to deliver the

Operations element of The Great Operator Agenda.

The majority of new processes implemented by world-class performershave been proactive, reliability-focused processes derived from post-execution reliability analysis. The six elements outlined within the

common maintenance strategy are the foundation of a reliability-focusedculture.




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A reliability-centered culture for asset management seeks to better understand assets before failure, put in place proactive equipment

reliability strategies to cost-effectively eliminate the likelihood andconsequence of failures, and move toward an environment where

equipment failures will be pre-determined.

This provides the basis for focusing personnel and other resources on the

equipment that has the most direct impact on the business. CMS withinthe context of a reliability culture guides the organization to that area of

the facility where it should focus its efforts, along with the specific assetswithin that area that deserve the most attention.

CMS seeks to establish a continual or "evergreen" improvement process.

This results in "evergreen" reliability strategies that are continuallycustomized to ensure optimal performance for equipment. The ultimateresult of the "evergreen" process is to move toward an equipment-specific

reliability strategy for each equipment item based on its actual performance.

Significant cultural changes, cost savings, and increases in facility

availability can be achieved within a reliability culture. To reach quantumand long-term improvement, a change in mind-set and work is required.

The reality is that this is a journey, not a destination, and unfortunately,there is no "Holy Grail" which will work for everyone. CMS and the GOinitiative provide bp with the foundation for cultural change.

The journey from Maintenance Innocence to Excellence is depicted in the

following grid. The journey involves the implementation of multiple

processes to move from a reactive to a proactive business atmosphere.The grid details progress along nine dimensions:

q Strategyq Human Resources Management

q Planning and Schedulingq Maintenance Tactics

q Performance Measuresq Information Technology

q Employee Involvementq Reliability Analysis

q Process Analysis

Maintenance Excellence depicts a fully-integrated business environment

that maximizes its personnel utilization and thoroughly analyzes allavailable information to make significant process improvements.




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III. Asset Management

The GO initiative and CMS are designed to deal with the pressure to be

increasingly cost-effective and competitive in global markets.Management at all levels within bp has begun to focus on the importance

of production equipment and systems reliability as a critical strategy for improving financial performance.




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An effective, comprehensive asset reliability strategy typically results in a

20-35% reduction in maintenance cost accompanied by a 15-25% increasein production with no capital investment in new equipment.

The net effect on the bottom line is often several million dollars annually

per site. While unit production costs are significantly decreased byimplementation of asset reliability program, the majority of the financialimprovement opportunity comes from increased Asset Utilization in terms

of real production output.

The most effective way to increase Fixed Asset Productivity is tomaximize asset utilization by increasing the Reliability of the Assets.

Developing and implementing an asset reliability program requires

significant effort and knowledge. Most business units have difficultyfinding a sufficient supply of these valuable commodities to implement anasset utilization program internally. Many business units also struggle

with figuring out how to get started and what direction to proceed.

Three basic principles are woven into the CMS and form the foundationfor support of the GO initiative:

1. The strategy consists of a set of well-defined business process

models and supporting documentation that define the ways inwhich work is accomplished.

2. It establishes effective measures or performance indicators that

clearly reflect the adoption of new behaviors and trend theachievement of stated objectives that results from these changes.

3. It supports development of a learning environment and a

“reliability culture” that rewards development of people andimproving Asset Utilization.

CMS provides the roadmap to increasing asset utilization.

IV. Key Performance Indicators (KPIs)

Management by exception is critical in ensuring the goals of the CommonMaintenance Strategy (CMS) portion of the Great Operator (GO)initiative. Identifying and addressing performance gaps is necessary in the

pursuit of best-in-class operations. Generating trends of key performanceindicators (KPIs) ensures that the facility is moving in the right direction.

KPIs are snapshots of different aspects of a facility’s operations. Trendingthese values is comparable to continuous benchmarking against best-in-

class targets. Analyzing the data generated by these KPI trends helps




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identify the important and urgent performance gaps that are impeding

progress.

KPIs come in multiple formats and cover the full-range of a site’soperation. They track aspects such as revenue, expenses, incidents,

backlog, compliance, reliability, etc. For CMS, individual KPIs track either the site’s efficiency in doing something (i.e. proactive maintenancecosts) or the site’s effectiveness in doing something (i.e. equipment

reliability). By comparing efficiency and effectiveness measures, we cancalculate how much it costs to get the performance we are experiencing

(i.e. proactive maintenance spending yields the corresponding equipmentreliability). Considering this association, logic implies that the more the

site spends on proactive maintenance (i.e. less efficient), the better theequipment reliability will be (i.e. more effective). These two KPIs are

directly related in this manner – more spending, better performance.Performance will move along the expected trade-off line in the graph

below.

Eventually, increased spending will no longer improve performance due tothe law of diminishing returns. Therefore, increasing spending may not

yield the performance level demanded. In order to reach this world-class performance, a change must be made. A change will move the expectedtrade-off line towards the world-class performance quadrant. A change

means changing actions from the status quo. Examples of changes includestarting a new program (i.e. root cause failure analysis), reviewing staffing




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levels, analyzing available data, creating incentives for performance,

conducting specialized training, etc. These changes are the same processes and tools used in the CMS to realize the goals of the GO

Initiative:

q

Increase Production and Operating Efficiencyq Lower Unit Operating Costsq Improve Integrity Management

q An Engaged and Competent Workforce

As performance is monitored with the KPIs, performance gaps areidentified and addressed by instituting changes. As changes are

implemented, performance continues to be tracked by the KPIs. This isthe cycle for continuous improvement. As changes are incorporated into

the status quo, optimization of the process can occur to drive down itsimplementation costs. The ultimate goal of each change is to further increase the effectiveness of the process at reduced expense to the facility

until world-class performance is attained – high effectiveness at low cost.

KPIs are the road markers on the road of continuous improvement. Theyshow current status and suggest processes that need to be optimized in

order to reach best-in-class performance.

V. Assessments

The maintenance assessment is a tool within the Common MaintenanceStrategy utilized to evaluate the effectiveness of the facility’s maintenance

management practices and to identify opportunities for improvement. Thefacility is assessed against best in class maintenance practices and work

processes. Assessments look at the six elements within the CMS:

q Leadership and Organization

q Facility Availabilityq Work Management

q Materials Managementq Change Management

q Continuous Improvement

Fundamental to the CMS philosophy is the belief that maintenance is a

shared responsibility of the various functional groups within the facility.CMS requires that operators/technicians perform minor maintenance tasks

and conduct routine surveillance of the equipment condition. CMS relieson cross functional teams to be involved in ESMP/RCM and RCFA

activities, and requires that the personnel survey equipment using the bestnon-intrusive technologies to track equipment condition and trend




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degradation to predict what might otherwise be unexpected functional

failures. Teamwork, cooperation and shared accountability are essentialfor successful implementation of CMS.

The outcome of maintenance assessments will provide a detailed

qualitative analysis of the facility’s current maintenance management practices. A list of recommendations and an implementation plan withestimated cost and return on investment will be generated as part of the

assessment. The implementation plan costs can be used to set budgets andschedule resources as needed.

There are three levels of assessment within the CMS:

q Self-Assessment – completed every year by personnel locatedat the site to give an overview of performance on all six

elements of the CMS (½-1 day)q Peer-Assist Assessment – completed every two years or as

needed by subject matter experts within the Business Unit

(BU) or a central support group (E&PTG) to focus on specificdeficiencies identified by self-assessment or other internal

process (1-2 days)q Formal Facilitated Assessment – completed every four years at

a minimum by personnel external to the BU to perform adetailed review of all six elements of the CMS (4-5 days)

See Appendix A for copies of the three types of assessments.




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Elements




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• Leadership and

Organization• Facility Availability

• Work Management

• Materials Management

• Change Management

• ContinuousImprovement

• Increase Production

and OperatingEfficiency

• Lower Unit OperatingCosts

• Improve IntegrityManagement

• Engaged and

Competent Workforce

19 CMS Processes

9 Related Processes



I. Overview

Definition

Leadership is the capacity to translate vision into reality.

. . power is the basic energy needed to initiate and sustain action or, to put it another way, the capacity to translate intention into reality and

sustain it. Leadership is the wise use of this power: Transformativeleadership.

The most dangerous leadership myth is that leaders are born-that there isa genetic factor to leadership. This myth asserts that people simply either

have certain charismatic qualities or not. That's nonsense; in fact, theopposite is true. Leaders are made rather than born.

Warren G. BennisProfessor of Business/Management at University of Southern California

Importance

To meet the exploration, production goals of bp it is imperative that

Leaders with responsibility for the Maintenance and Reliability functions be held accountable for accomplishing specific targets related to

performance in these areas. Each is responsible for leading and engagingthe workforce and clearly defining Maintenance and Reliability roles and

responsibilities, providing needed resources, and measuring, reviewingand continuously improving our performance in these areas.

In order to sustain best-in-class exploration and production operations, bp’s aim is to operate systems and processes to manage the selection,

training, development, assessment, and reward of our people and thoseworking for third parties.

II. Expectations

Leaders model positive Maintenance and Reliability behaviors by personal

example both on and off the job, and reinforce and reward positive behaviors.




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Leaders engage in clear, two-way communication with employees,contractors and others on Maintenance and Reliability issues.

Leaders develop a clear Maintenance and Reliability Strategy. The

strategy and performance indicators should have high visibility with theworkforce and be reviewed regularly to determine the effectiveness of thestrategy. The strategy should be updated and reissued on an annual basis.

Leaders integrate the Maintenance and Reliability Strategy with

expectations into business planning and decision-making processes,ensuring that documented systems are in place to deliver these

expectations.

In the Strategy, leaders establish clear Maintenance and Reliability goals

and objectives, roles and responsibilities, performance measures andallocate competent resources and, where necessary, specialist expertise.

Maintenance and Reliability Management systems are developed,documented, implemented and supported throughout the organization.These address health, safety, technical integrity, environment, security,

equipment reliability and maintainability, the productivity of Maintenanceresources, as well as operational risks in accordance with the appropriateexpectations.

Each Leader’s performance is assessed against their personal annual

objectives, based on feedback from line management, peers and others inthe Business Unit.

Leaders integrate Group Maintenance and Reliability targets into their

business activities and personal performance objectives.

Leaders promote the sharing of Maintenance and Reliability lessons

learned inside and outside their Business Unit.

Qualified competent personnel are selected and placed to meet specified job requirements. Provision for initial and on-going training to meet job

and legal requirements includes:q Definition of required competencies.q Assessment of training requirements.

q Training documentation.q

Mechanisms for assessing training effectiveness.q On-the-job competence assessment.

Personnel performance is assessed, documented and feedback given.




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Exchange of personnel between operational areas to promote self-confidence and breadth of experience.

Relevant professional development for those working in the maintenance

and reliability community.

Clear Maintenance and Reliability Leadership accountability for the

selection, training, development and competence assurance of their personnel.

Maintenance and reliability performance is linked to individual or team

reward.

Contractor’s skills, performance, availability and value to the bp CommonMaintenance Strategy are assessed on a periodic basis.

Within an organization implementing the CMS exists a set of core

functional requirements. These requirements detail functions that must be performed to establish a world-class organization. This is not an exclusivelist, but includes minimum core functions. Some functions may be

performed by more than one person, and some individuals may fill severalfunctional positions.




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q Leadership – Senior, Field, and First-Line- Fully endorse Common Maintenance Strategy and

accountable for implementation and results- Provide resources and training for CMS implementation

- Make business decisions based on performance indicatorsdirectly affected by CMS processes

q Mentoring

- Committed to and advanced knowledge of CMS processes- Assists in implementation of CMS processes

- Monitor and incorporate best practicesq Facility Operations

- Responsible for the operation, monitoring, and basic care of the equipment

- Serve as first-line-of-defense against equipment failuresq Facility Maintenance

- Responsible for proactive and corrective maintenance and

emergency repairs of the equipment

- Directly supports the condition-based maintenance programq Planning

- Use rigorous bp planning and scheduling model to develop

planned work packages with competency requirement andaccurate time and material estimates

q Scheduling- Use rigorous bp planning and scheduling model to schedule

and assign all planned proactive and corrective

maintenance work q Materials Coordination

- Purchase materials needed for repairs and inventory control- Ensure accurate inventory accounting and make

suggestions to optimize storehouse operationsq Engineering Support

- Provide specific technical expertise for the CMS processes,

in particular, condition monitoring and reliability analysis(ESMP/RCM/RCFA) techniques

- Research and implement industry best practicesq Data Analysis

- Interpret condition monitoring, performance, and financialdata and convert to information useful for business

decisions- Collect data and develop trends for CMS KPIs

q CMMS Support

- Assist personnel as required (e.g. forms, queries, reports,troubleshooting, etc.) in the data entry and retrieval from

the CMMS




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III. Related Key Performance Indicators

In order to track the site performance on the CMS Element Leadership andOrganization, the following KPIs are suggested.

Key Performance Indicator Target ValueOverall Operating Efficiency (%) Site specificProduction Efficiency (%) Site specific

MI/HiPos 0Lifting Cost ($/boe) 2.30 $/boeMaintenance Cost per TotalOperating Cost

15%

Maintenance Cost per EquipmentReplacement Value

1.5% - 3.0%

CMS Implementation Cost Site specificCMS Implementation Status 100% in 2 yrs.

See Appendix C for detailed information on all the KPIs for the CMSProgram. This information includes the formula to calculate each KPI, thetarget value and desired trend, and what CMS Processes and Tools are

specifically recommended to improve performance for each KPI.

IV. Processes and Tools

In order to improve performance within the Leadership and OrganizationCMS Element, the following CMS and Related Processes and Tools apply.


1. Computerized Maintenance Management System (CMMS)2. Knowledge Management

3. Equipment Specific Maintenance Plan/Reliability CenteredMaintenance (ESMP/RCM)

4. Defect Elimination Program5. Condition Monitoring and Process Data Collection6. Data Analysis

7. Operator Performed Maintenance8. Planning and Scheduling

9. Spare Parts Management

10. Supply Chain Management11. Quality Assurance and Precision Maintenance Program12. Risk Based Inspection (RBI)

13. Generic Equipment Maintenance Strategies14. Campaign Maintenance




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15. Redeploy and Optimize Staffing16. Roles, Accountabilities, and Deliverables

17. Common Maintenance Strategy for New Projects18. Capital Value Process for Turnarounds (CVP-TAR)


1. Succession Planning2. TeamShare

3. Performance Evaluation (myPerformance)4. Training Program (Competency on Line)5. Health, Safety, and Environment (gHSEr)

6. Process Safety Integrity Management (PSIM)7. Choke Model

8. Operations Value Process (OVP)9. Capital Value Process (CVP)

See the appropriate topics in the CMS Processes and Tools section for detailed information on each process.




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Faci l i ty Avai labil i ty

I. Overview

Definition

Facility availability is directly related to thereliability of equipment and processes.

Availability is defined as an item that is ready

to function or is online under a predeterminedoperational context and stated support

conditions.

Availability takes into account planned and unplanned downtime.

Reliability minus Availability equals the amount of intentional downtimedue to planned intrusive maintenance activities. Availability is measured

to drive elimination of intrusive maintenance inspection activities.

Reliability is defined as the probability that equipment, machinery, or systems will perform their required functions satisfactorily under specific

conditions within a certain time period; measured by mean time betweenfailure (MTBF); the duration or probability of failure-free performanceunder stated conditions.

Glossary of Reliability and Maintenance Terms, McKenna and Oliverson

Importance

We will put in place systems and processes to ensure maximum

availability of plant and equipment whilst recognizing company and sitesafety objectives, legislative requirements and the need for costeffectiveness associated with maintenance and reliability activity.

II. Expectations

Systematically and logically optimize the amount and type of maintenance

work performed.

Use Reliability Analysis (ESMP/RCM) to:q Create a list of critical equipment ranked on risk (likelihood of

failure times consequence of failure)




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q Create an optimized proactive maintenance plan, which replacesintrusive time-based maintenance tasks with condition monitoring

tasks and predictive maintenance techniques when possible (e.g.vibration analysis, process variable trending, PV analysis, sonic

analysis, oil analysis, and thermography)q Eliminate non-value added maintenance activities on equipment

which can be cost-effectively run without proactive maintenance

Use criticality analysis (RBI) to develop condition-based maintenance

plans for fixed equipment.

Undertake timely investigation of plant and equipment failures to:q Identify failure root causes and contributing factors.

q Determine actions needed to prevent a re-occurrence.q Ensure that Action Plans are generated.q Ensure any recommendations are implemented within an agreed

time scale.

Findings and recommendations resulting from inspections and routinemaintenance of equipment must be reviewed, and the resulting

information is utilized in re-assessing:q The most appropriate maintenance and reliability techniques.

q The frequency of inspection/overhaul.q Application of condition monitoring techniques.

Undertake timely and cost-effective replacement of plant equipment byreviewing reliability and performance with respect to inspection and repair

histories, age, vendor support availability, and life cycle costs.

Ensure that the availability of materials and spares does not impact upon plant reliability and production.

Undertake systematic review of the inspection scope and frequency for each asset.

Undertake systematic review of the frequency, content and duration of

major turnarounds.

Eliminate intrusive maintenance and inspections where possible.

Equipment will be operated and controlled within specified operating

envelopes and in accordance with regulatory requirements and designspecifications.

Use myPerformance to evaluate operator/technician performance relative

to equipment maintenance.




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In order to track the site performance on the CMS Element Facility

Availability, the following KPIs are suggested.

Key Performance Indicator Target Value

Facility Availability >98%Overall Equipment Effectiveness 85%Reliability of Critical Equipment 99%

Availability of Critical Equipment >98%Proactive Maintenance Cost Site specific

Maintenance Cost per Capacity Site specificReliability Analysis Program Cost Site specific

See Appendix C for detailed information on all the KPIs for the CMS

Program. This information includes the formula to calculate each KPI, thetarget value and desired trend, and what CMS Processes and Tools are



In order to improve performance within the Facility Availability CMSElement, the following CMS and Related Processes and Tools apply.




4. Defect Elimination Program

5. Condition Monitoring and Process Data Collection6. Data Analysis


9. Spare Parts Management10. Quality Assurance and Precision Maintenance Program

11. Risk Based Inspection (RBI)12. Generic Equipment Maintenance Strategies13. Campaign Maintenance

14. Re-deploy and Optimize Staffing15. Roles, Accountabilities, and Deliverables




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1. TeamShare2. Training Program (Competency On Line)

3. Health, Safety, and Environment (gHSEr)4. Process Safety Integrity Management (PSIM)

5. Choke Model6. Capital Value Process (CVP)





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Work Management

I. Overview

Definition

Work Management includes techniquesapplied to the organization and conduct of

work for purposes of maintainingefficiency or effecting improvement.Wideman Comparative Glossary of Project Management

Terms, www.pmforum.org

Work management is the efficient use of

personnel in the completion of valuable

tasks, making resources available when needed for timely work completion.

Importance

Each operating facility will carry out the best-known reliability practices

that dramatically eliminate breakdowns and subsequent work, convert thenature of maintenance activities from reactive to proactive, and maximize

equipment on-stream time. Each site should carry out repair maintenancework using a planned approach that makes effective use of resources and

guarantees the quality of repairs.

II. Expectations

Business Units will be sufficiently staffed with well trained Maintenanceand Reliability resources that address all equipment breakdowns and

eliminate the true root cause in a timely manner.

Trained autonomous teams of cross-functional employees will be used to

investigate and solve issues that affect equipment reliability.

Continuous and sustained effort will be directed to change the composition

of maintenance and reliability activities from reactive repair of breakdowns to proactive PPM and condition monitoring.

Operating technicians will be involved in a level of equipment care thatdramatically enhances their ability to operate equipment, monitor condition and avoid breakdowns.




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Minimize unplanned work consistent with Business Strategies by proper

prioritization of repairs and PPM activities.

Efficient use of resources, via effectively estimating the labor, equipmentand materials required for efficient, predictive, preventive, and responsivemaintenance.

A CMMS is used which supports the planning, scheduling, and work

documentation processes. It should also provide the reporting and dataanalysis tools for a best in class Maintenance and Reliability effort. And

all maintenance, operations, and engineering personnel are trained in itsuse.

Regular meetings are held at which operations, maintenance, and planning personnel can review, approve and schedule maintenance work.

Effective measurement of the planning effort.

Contractors are selected and managed on the basis of quality, competency,

service, cost, and HSE performance.

Contractor agreements that include clear deliverables, performancemeasures and standards, and compliance assurance.

The Statement of Requirements/Decision Support Package attached to project work must recognize and integrate the plant’s strategy towards

maintenance, reliability, shutdowns and life cycle costs.


In order to track the site performance on the CMS Element Work Management, the following KPIs are suggested.


Percent Planned Work 90%Man-Hour Schedule Compliance >80%

Overdue Safety Critical EquipmentWork Orders

0

Maintenance Personnel Utilization(Wrench Time)

70%

Maintenance Personnel Utilization(Value Added Work)

90%

Man-Hour Backlog 30 Days/FTE




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Percent Emergency Maintenance <5%

Percent Proactive Maintenance 65%Percent Prompted CorrectiveMaintenance

20%

Percent Breakdown CorrectiveMaintenance

10%

Proactive Maintenance Man-HoursOverdue

<5%

Corrective Maintenance Man-HoursOverdue (non-emergency)

<15%

Estimated to Actual ProactiveMaintenance Man-Hours

+/- 5%

Estimated to Actual CorrectiveMaintenance Man-Hours

+/- 20%

Maintenance Overtime <5%

Contractor Cost Site specificEffectiveness of PM Program Site specific


Program. This information includes the formula to calculate each KPI, thetarget value and desired trend, and what CMS Processes and Tools arespecifically recommended to improve performance for each KPI.


In order to improve performance within the Work Management CMSElement, the following CMS and Related Processes and Tools apply.




4. Defect Elimination Program

5. Condition Monitoring and Process Data Collection6. Data Analysis


9. Spare Parts Management10. Supply Chain Management11. Quality Assurance and Precision Maintenance Program

12. Risk Based Inspection (RBI)13. Generic Equipment Maintenance Strategies

14. Campaign Maintenance




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3. Performance Evaluation (myPerformance)4. Training Program (Competency On Line)






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Mater ials Management

I. Overview

Definitions

Materials Management. The grouping of management functions

supporting the complete cycle of material flow, from the purchase andinternal control of production materials to the planning and control of

work-in-process to the warehousing, shipping, and distribution of thefinished product.

This is also referred to as Business Logistics – the transportation and

distribution of materials. Procurement and Purchasing are sub-systems tooverall Materials Management.

Procurement. The business functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming-inspection, andsalvage operations.

This is a term used often used to describe the tactical level and/or front-end part of Materials Management .

Inventory Control . The activities and techniques of maintaining thedesired levels of items, whether raw materials, work-in-process, or finished products.

This also applies to Operating Spares, and includes the elements of classification, verification, inventory levels and reorder points, issuance,and vendor arrangements.

Warehouse Management. The policies, procedures, and activities related

to receiving, storing, and distribution of materials to and from productionor distribution points.

Because inventory is stored in warehouses, the physical management of

inventory and warehousing are intimately connected. This is especiallytrue when inventory is turned over quickly and the warehouse functions asa distribution center.

Operating Spares. The maintenance, repair, and operating supplies used insupport of general operations and maintenance such as maintenance

supplies, spare parts, and consumables used in the manufacturing processand supporting operations.




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Operating Spares does not include raw or intermediate materialsincorporated into products.

Importance

Balancing customer service and costs against production requirements andequipment reliability (known or unknown) is a dynamic process,especially when striving for continuous improvement and cost reduction.

Variables include:q Material quality and availability

q Vendor qualification and reliabilityq Flexibility in storage facilities

q Equipment reliability and flexibilityq Production rates and product quality

q Personnel and skills available

II. Expectations

As each of bp’s business units strive to maximize profits they will have at

least the following strategic expectations of material control:q Maximum customer service.

q High efficiency / low operating costs.q Minimum inventory investment.q ‘Just in Time’ materials strategy

Several things determine the right levels of inventory. Strategic objectives

and the resultant policies, systems, and procedures govern the inventory

control and levels in companies. The degree of discipline andaccountability against these elements also plays an important role.

Ultimately, the desired or accepted inventory levels are a result of

ensuring that needed items are immediately available while minimizing“money sitting on the shelf”. The balancing act falls into four categories.

Inventory investment should be balanced with:1. desired customer service levels

2. the impact of changes in production or maintenance activities3. the cost of ordering and reordering

4. transportation and storage costs

ESMP/RCM will determine critical spares requirements. Analysis coversavailability, lead times, cost, and risk to production.

CUSTOMER SERVICE is broadly defined to be the ability to satisfy theneeds of customers. In inventory management or control, it is the




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availability of items when they are needed. For Operating Spares, it is theavailability of supplies, spare parts, and tools for maintenance, repair, and

operations. The availability of equipment when needed is directly linkedto its reliability and maintenance, and is therefore the ultimate measure of

providing customer service.

Inventories help to maximize customer service by protecting against

uncertainty. As equipment reliability and maintenance planning andscheduling improve, uncertainty decreases and inventory needs are

lessened.

Customer service is a measure of inventory-management effectiveness,and can be calculated in various ways. Order-filling time, stock-outs

(number of, duration of), inventory turns, inventory levels or values, andinventory accuracy are some typical measures.

OPERATING EFFICIENCY is impacted by inventories in many ways.

The most applicable example for Operating Spares items is an inventoryof spare parts and maintenance supplies. Inventory build-up provides a

buffer between functions and equipment operating at different rates thus

preventing their individual efficiencies to be hampered by theinefficiencies of other operations. This is especially important for different

pieces of equipment or systems that have varying reliabilities. Also,having needed parts and supplies in inventory and readily availableshortens the down time of equipment and the preparation time for repairs

and maintenance.

Other examples of how inventories impact efficiencies and operating costsinclude level-loading production to build anticipation inventory for

seasonal demands. An application for Operating Spares items is found inthe annual (or bi-annual, etc) shutdowns or turnarounds. Long-term

planning allows efficient and cost-effective organization and accumulation

of supplies, tool, parts, and even temporary personnel. Volume purchasingcan also be an effective way to achieve lower item and purchasing costs,

although the carrying costs of the inventories don’t always justify thisstrategy. A diligent cost-benefit analysis should be the basis for

purchasing inventory.

INVENTORY INVESTMENT, while beneficial, comes at a price asmentioned above. The problem is to balance inventory investment (costs)with the level of customer service desired or needed. The lower the

inventory, the higher the likelihood of a stockout. But, excessiveinventories are not desirable either. High inventories not only come with

higher costs, but excessive levels can also overload a system or warehouse, disrupting effective organization. Too much of a good thing is

not a good thing.




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Today, the term “vendor” is sometimes replaced with “supplier” because

of the connotation of a vendor being a sidewalk hot-dog seller. But bothterms are used interchangeable in this course and when they are used in

the workplaces.

Vendor stocking refers to situations when vendors stock items for a

company either on the vendor’s site or the company’s site.

q If the items are stocked on the company’s site, the vendor isusually allowed on the site to review stock levels and replenish

stock. Arrangements for this include access limited to authorizedand relevant areas, record keeping, inventory verification, and

billing/payment options.

q If the items are held at the vendor’s site, they are usually identifiedand held for the specific company according to arrangements

made. In this case, when the items are not on the company’s site,

but the company is depending on their availability, solidarrangements and understandings would have to have been madeto ensure the availability. An element of this is how many of theitems the vendor is expected to have on hand at any time, agree-

upon reorder points, and the means and timeframe in which theitems can be moved from the vendor to the company when needed.

A company should treat vendor-site stocking as just another warehouse site with all the same controls that their own warehouse

abides by.

Advantages of vendor-stocking arrangements

q Uses less of a company’s own storage areas and material-handlingequipment

q Uses less of a company’s own personnel time

q Vendor inventory controls may be better than the company’s owncontrols

Disadvantages of vendor-stocking arrangements

q Liability and security issues of vendors on company property needto be addressed

q Lack of hands-on control for vendor-stocked itemsq Access to vendor items may be inconsistent with needs (e.g.,

weekends, 3am, etc)

q Vendor inventory controls may be worse than the company’s owncontrols

q Excessive stocking costs (as much as 10% of an items cost)




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The chart below illustrates when spare parts should be held based on

customer service, operating efficiency, inventory investment, andequipment criticality.


In order to track the site performance on the CMS Element Materials

Management, the following KPIs are suggested.

Key Performance Indicator Target ValueSavings due to Preferred Providers Site specificStorehouse Cost per Inventory Value

<35%

Storehouse Inventory Value perEquipment Replacement Value

0.5%

SKU Stockouts <1%Inventory Turns per Year >2

Parts Expedited 2%




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See Appendix C for detailed information on all the KPIs for the CMSProgram. This information includes the formula to calculate each KPI, the

target value and desired trend, and what CMS Processes and Tools arespecifically recommended to improve performance for each KPI.


In order to improve performance within the Materials Management CMS

Element, the following CMS and Related Processes and Tools apply:




4. Defect Elimination Program5. Planning and Scheduling

6. Spare Parts Management7. Supply Chain Management8. Quality Assurance and Precision Maintenance Program


11. Common Maintenance Strategy for New Projects


1. Succession Planning2. TeamShare3. Performance Evaluation (myPerformance)

4. Training Program (Competency On Line)





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Change Management

I. Overview

Definition

Change Management is ‘the key component’ when it comes to

implementing the Common Maintenance Strategy. Sometimes it is usedas a catchall term to describe organizational change and the techniques to

achieve a successful outcome. At its heart, change management is aunique opportunity to encourage correct behaviors to build a tighter, more

focused business using both activity-centered and results-driven programsaimed at strengthening fundamental corporate competitiveness.

Importance

Change . It’s all around us, and accelerating. Maintenance and reliability

organizations are no different. To survive, organizations must innovate,adapt, and master change as a tool for continuous improvement. For

example:

q Over 400,000 businesses failed during the first half of the ‘90’sq Merger and acquisition activity is at an all time highq 85% of US organizations now outsource some services

q 45% of US companies have reduced their workforces every year

This section provides the precepts for driving change - for making it work for the employees and for the company.

II. Expectations

Don’t let the old way dictate the better way

Contemporary American observer Will Rogers said, “Even if you’re onthe right track, you’ll get run over if you just sit there.” Sitting there is the‘status quo.’ In order to drive change, we can not continue doing things

the same old way; after all, that is what produced the current status quo.

A humorous definition of insanity that applies directly to changemanagement is ‘doing the same things over and over again and expecting

different results’. In order to change our results, we must change our behaviors.




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Business Focus

Spending too long trying to understand where the department is right nowallows the status quo to entrench itself. It is a stalling tactic that allows

those who are resistant to change to slow the process.

Don’t waste precious time and resources by looking backward. Keep thefocus on the future vision – where the business wants to be performing.

The current vision for bp is to be the Great Operator – an operating

environment without defects. The vision is to improve corporate value by:q increasing production and operating efficiencyq lowering unit operating costs

q improving integrity managementq establishing an engaged and competent workforce

All business activities should be directed towards the vision.

Destabilize to promote movement

Organizational change is frequently required to maintain progress towardsthe corporate vision. The Great Operator (GO) Strategy will strengthen

the company and increase shareholder value.

Existing corporate structures are oftentimes not ideally suited for change.Attempts at incremental change or “tweaking” the organizational cultureusually die from lack of consistent energy. Going slow allows the old

bureaucracy to overtake the change effort. The entire company must be

aware of the vision and its benefits in order to understand whyorganizational changes are necessary. A streamlined business model leadsto quick decisions and rapid movement.

Be Firm

In a climate of accelerating change, the team leader’s job is to help theorganization, business unit, and department keep up. If the culture doesn’t

adapt rapidly – the organization loses.

In times of rapid change the organization must do what works, not what

feels good. This goes for processes, policies, and people.

Team leaders must be focused on the company’s vision and goals. Theymust care enough to take the tough, unpopular stance so the organization

can survive. Don’t lead people on. Present them with the facts, goals, and




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objectives. Seeking to appease the crowd by taking it slow onlycompounds impending disaster.

Team leaders must be held accountable for making the necessary changes

and ensure clear roles and responsibilities are defined and adhered tothroughout the organization.

Change the reward system

Incentivize positive behaviors that create progress towards the vision. Donot reward resistance or the old manner of doing things.

Restructure the rewards and sanctions to make them consistent with thenew priorities, goals, and values.

Align maintenance and reliability, HSE, and project management teams

based on their ability to achieve substantial behavioral changes toward

supporting the common maintenance strategy.

Keep score

As detailed elsewhere in the Common Maintenance Strategy, what getsmeasured, gets managed. Key Performance Indicators (KPIs) are vital to

the success of any reliability and maintenance strategy. Changemanagement is no different.

Set incremental targets and measure the change. Reward results and theattitude of the organization will shift in the direction of the change.

Measuring also enables leadership to track progress to see where the

program or process is bogging down, where the resistance lies.

Measurement provides the best form of feedback on performance.

Promote vision

The job as a team leader is to promote the vision of the Great Operator andthe supporting common maintenance strategy. Shifting away from the

concepts contained here is jarring, demoralizing, and there is a tendency to become disoriented. Keep the focus.

Leadership support is vital to ensuring the new programs success. Withoutleadership support, excitement, and faith, employees will experience fear,

doubt, and will resist the change.

Free employees from constraints




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“But that’s the way we’ve always done it” is the battle cry of resistance tochange. It is the axiom of the bureaucracy. “Not invented here”

syndrome is another obstacle to progress. Learning from others isnecessary for rapid and effective change.

Simplify. Simplify. Simplify. Eliminate unnecessary policies and procedures. Don’t keep old rituals that support the old way of doing

things.

Stripping away bureaucracy forces people to change the way business isdone.

Maximum communication

Non-stop two-way communication is the only way that any changemanagement endeavor will succeed. Specifically, information that needs

to be shared with the workforce includes:

q The rationale behind the changeq The facts (market demands, competition)q The details of the change and how each person is affectedq The expectations for each person

Never stop expounding the vision. Communication is what keeps

ambiguity and confusion at bay.

Maximize involvement

Involve everyone in the organization from the newest maintenance

technician to the master craftsman. Hold the employees personally

accountable for transforming the organization.

Assign specific responsibility for making the required changes to each

level of the organization – from the top to the bottom.

Change structure and administration

The organization will not be able to break the ties of the ‘way we’ve

always done it’ if it continues to operate within the same structure thatcreated the bottleneck.

q

Design organizational capabilities to execute CMS processes,which reduce operating cost and maximize efficiency

q Realign function to breakdown departmental barriersq Improve cross-team, departmental communication

q Alter approval processesq Reengineer work processes




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The key here is to alter the structure and administrative constraints that

support the old way of doing things and reinforcing the new program.

Lead by example

Team leaders must “walk the talk.” Every employee will be watching

how they manage change themselves. Are they actively involved,trending the required KPIs, joining RCFA studies and Equipment

Improvement Teams, promoting planning and scheduling, etc.?

If the behavior of the team leader portrays the programs contained withinthe Common Maintenance Strategy, then it’s fair to expect the employeesto do so as well.

Win quick

Perhaps the hardest task of a team leader undertaking a changemanagement project is the necessity of achieving measurable results

quickly. It is vital to obtain early proof that each program is worth theeffort. The longer without evidence that the benefits exceed the costs, the

harder it will be to stay the course with superiors or subordinates.

Set incremental targets and express victories monetarily at everyopportunity. Financial returns on investment are the surest measurement

of success.

Educate and Train

Employees are better equipped to support change if they are trained.Training builds confidence, competency, and a willingness to acceptchange.

In order to fully accept and implement the common maintenance strategy,employees must be trained in each of the toolbox processes to ensure

success.

The Change Management Cycle

The effort of change management is essentially a continuous improvement

cycle:q Plan

q Executeq Analyze

q Improve




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Team leaders evaluate the current status quo and develop animplementation plan to promote progress towards the vision. In this case,

the implementation plan is the processes within the Common MaintenanceStrategy. An assessment helps identify performance gaps and what

specific processes need to be implemented.

Once identified, leadership must approve and actively support the

implementation plan. In order to demonstrate commitment to the CMS,use myPerformance to set objectives for team leaders that correspond to

positive trends on the CMS KPIs. This is essentially the leaders’ approvalof the implementation steps. Specific responsibility for the execution of

the CMS plan will be delegated down the organization, but ultimateaccountability for the results resides with the facility leadership team.

Track the performance of the organization and modify the implementation plan as required to maintain progress towards the Great Operator vision.

Reward positive behaviors quickly, specifically, and publicly. Reward

and recognition for positive behaviors can range from the simple (verbalor written praise, small gift) to the significant (bonus, promotion, largegift). As the changes become highly visible, the workforce becomes more

engaged and change becomes easier.


In order to track the site performance on the CMS Element ChangeManagement, the following KPIs are suggested.


Key Personnel Roles and Accountabilities

100%

Maintenance Training Costs 40 Hrs/FTECMS Assessment Score 70%

See Appendix C for detailed information on all the KPIs for the CMSProgram. This information includes the formula to calculate each KPI, thetarget value and desired trend, and what CMS Processes and Tools are



In order to improve performance within the Change Management CMSElement, the following CMS and Related Processes and Tools apply.




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1. Knowledge Management2. Defect Elimination Program3. Condition Monitoring and Process Data Collection

4. Data Analysis5. Operator Performed Maintenance

6. Planning and Scheduling7. Spare Parts Management

8. Supply Chain Management9. Quality Assurance and Precision Maintenance Program

10. Risk Based Inspection (RBI)11. Generic Equipment Maintenance Strategies12. Campaign Maintenance




3. Performance Evaluation (myPerformance)4. Training Program (Competency On Line)


7. Operations Value Process (OVP)

See the appropriate topics in the CMS Processes and Tools section for

detailed information on each process.




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I. Overview

Definition

There are several techniques that apply to maintenance performance.

Their common goal is to ‘continually improve’ that performance by:

q Dealing with each type of failure most appropriately, in the mostcost-effective way.

q Enhancing productivity with a more proactive and plannedapproach.

q Ensuring active support and cooperation of people from

maintenance, materials, operations, technical and administrativefunctions.Uptime Strategies for Excellence in Maintenance Management, John Dixon Campbell

Importance

Without continuous improvement in the delivery of maintenance, there isstagnation and complacency. There are opportunities in every

maintenance operation. A 1995 study of maintenance organizations inCanada revealed:

Possible Savings of Maintenance Budget Dollars39% Reengineering and maintenance improvements

26% PM improvement and correct application of PM

27% More extensive application of predictive maintenance

7% Store room improvements

Continuous improvement is the only antidote to the constant pressure of

competition. It is essential that management realizes that continuousimprovement in the maintenance department is everyone’s business and

can only be achieved with everyone’s input.

II. Expectations

There are five basic and generic steps to continuous improvement.




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Commitment

Team leaders will commit the time to do all necessary analysis. They willallow and encourage worker participation, involve other departments.Commitment is for the long term.

Measurement

Effective measurement is fundamental to effective continuous

improvement. The KPIs identified in this document are all measures todetermine if an operation is truly improving. The assessments also usedherein are a form of benchmarking to determine current position and

improvement.

Information

All value-added data contributes to effective use of information. Examine

all production data, all minor jam-ups, all failures, all short repairs, all PMactivity, and every other maintenance event. The CMS Virtuous Cycle is

the model for enabling continuous improvement in reference to the CMS.

Data Analysis

The organization is expected to review and assess production losses fromsix different points of view:




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1. Economic - What is the direct cost and indirect(production/revenue loss) of the incident? What is the projected

ROI?2. Maintenance – How disruptive is the breakdown? What is the root

cause of the failure?3. Statistical – How often does the incident occur? Is there a pattern

or trend?

4. Engineering – What was the mode of the failure? Why did the breakdown take place?

5. Operations – How does this event impact operation? Is inadequateoperator/technician training a cause of a contributor?

6. Marketing/Business – What is the impact of this failure on thecustomer? Can this event impact quality?

The organization must also review data regarding facility optimization.q Identify opportunities to reduce the frequency of data collection for

items that are routinely not in an alarm condition.

q Identify optimized equipment intervention times based oncondition monitoring results.

Action

Based on the results gleaned from the investigation phase, improvements

can be started in any or all of the following areas:q Modify PM or maintenance procedures re. Add or delete tasks,

modify frequencyq Modify the equipment re. Improve/add equipment or remove the

source of the problem

q Modify a part or product re. Make the product easier to produceq Modify the production process re. Improve the process by allowing

greater variation in materials or new technology

Results

Following the steps detailed in the CMS Virtuous Cycle should yield

continuous improvement in the different steps shown in the cycle:q Optimized maintenance activities

q Improved maintenance efficiencyq Optimized manpower levels

q Improved equipment reliability and availabilityq

Optimized cost managementq Engaged and effective workforce

q Satisfied customers

Other positive results that will occur include improved performance in:q HSE and integrity management




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q Schedule complianceq Plan attainment

q Resource utilizationq Workforce competencies


In order to track the site performance on the CMS Element Continuous

Improvement, the following KPIs are suggested.

Key Performance Indicator Target Value Availability Improvement Site specific

Reliability Improvement Site specificMaintenance Utilization Improvement Site specific

Schedule Compliance Improvement Site specificMean Time To Repair (MTTR) Site specific

Mean Time Between Failures (MTBF)for Critical Equipment

Site specific


Program. This information includes the formula to calculate each KPI, thetarget value and desired trend, and what CMS Processes and Tools are



In order to improve performance within the Continuous ImprovementCMS Element, the following CMS and Related Processes and Tools

apply:


1. Computerized Maintenance Management System (CMMS)

2. Knowledge Management3. Equipment Specific Maintenance Plan/Reliability Centered

Maintenance (ESMP/RCM)

4. Defect Elimination Program5. Condition Monitoring and Process Data Collection

6. Data Analysis7. Operator Performed Maintenance

8. Planning and Scheduling9. Spare Parts Management

10. Supply Chain Management




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11. Quality Assurance and Precision Maintenance Program12. Risk Based Inspection (RBI)


15. Redeploy and Optimize Staffing16. Roles, Accountabilities, and Deliverables17. Common Maintenance Strategy for New Projects

18. Capital Value Process for Turnarounds (CVP-TAR)


1. Succession Planning2. TeamShare3. Performance Evaluation (myPerformance)

4. Training Program (Competency On Line)5. Health, Safety, and Environment (gHSEr)

6. Process Safety Integrity Management (PSIM)

7. Choke Model8. Operations Value Process (OVP)9. Capital Value Process (CVP)





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ComputerizedMaintenance

Management System

(CMMS)

• Leadership and

Organization

• Facility Availability• Work Management



• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


Computer ized Maintenance

Management System (CMMS)

I. Introduction

The goal of a Computerized Maintenance Management System is to cost-effectively and efficiently aid in the management of all maintenance

activities, including:q Work Order Accounting

q Planning and Schedulingq Inventory Control

q Procurementq Reporting

Overview

A computerized maintenance management system (CMMS) is commonlyrecognized as a maintenance and performance improvement tool. ACMMS is a tool, which alone provides little or no value until information

is captured and reported. It is the strategy, processes, and procedures thatadd value to the CMMS.

The term Enterprise Asset Management System (EAMS) is used

interchangeably with CMMS within the Common Maintenance Strategy.

Modern asset management requires accurate and effective informationflow to decision-makers unlike manual paper systems, which commonly

provide inaccurate and ineffective information flow.

Industry pace setters are cognizant of the untapped wealth of information

that lays hidden in a data repository such as a CMMS. Pace setters havealso realized that performance improvement can only occur when facility

personnel effectively use information to achieve business goals.

Today’s asset team leaders rely upon computerized maintenancemanagement systems to gather data and transform data into knowledge.Pace setters within industry require accessible and accurate information to

assist business team leaders, engineers and facility personnel to make wellinformed business decisions concerning capital improvements, equipment

reliability, material procurement and resource management.




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Management System

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Definition

A Computerized Maintenance Management System (CMMS) is anelectronic data and information management and reporting system.

II. Objectives

The owner specifications and CMMS design should be configured toallow for maximum functionality. Included in these functions are:

q Hierarchical listing of company maintained equipment in the assetregister

q Asset accounting such as purchase price, depreciation rates, etc.q Equipment vendor information such as part number, cost, site

delivery time

q Minimum and maximum on-shelf countq Warranty documentation and tracking

q Documentation (job plans) of scheduled planned maintenance

activitiesq Scheduling abilities for planned work q Equipment failure codes for accurate documentation of corrective

maintenance historyq Preventive and predictive maintenance procedure and

documentation control

q Documentation control of engineered equipment redesignq Personnel calendars of company and contract employees

q Personnel training qualificationsq Maintenance cost statistics and accounting

q Inventory control, requisitioning, and stock procurementq Analysis and reporting tools for maintenance performance.q Equipment priority and criticality matrix such as Ranking Index

for Maintenance Expenditures (RIME)

III. Process Model






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Management System

(CMMS)

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• Continuous

Improvement


and Operating


Costs


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Competent Workforce


IV. Implementation

Analyze

Determine the needs of the facility. For any amount of maintenance work and reliability reporting, a computer-based system is justified.

Design

Develop work flow processes that incorporate the effective use of theCMMS. The CMMS is the backbone to effective maintenance

management. The idiom ‘junk in, junk out’ applies nowhere better thanhere. Maintenance work processes must fully use the capabilities of the

CMMS, especially in terms of planning, inventory management, and work history documentation. Develop procedures to populate database and keep

it updated via periodic reviews or change requests.

Design training programs for users of the CMMS. Training topics should

include:q Access to the system

q Data entry and retrievalq Reporting capabilitiesq Expectations for minimum acceptable level of detail entered

q Who to contact to make changes (i.e. add equipment or failuretypes)

q Who to contact to troubleshoot problems with the system

Consider developing a computer-based training (CBT) program for theCMMS. Internal experts and external consultants are readily available to

develop these training materials.

Develop

Develop simplified reports within the CMMS to aid in the rapid retrievalof information. These reports should be able to generate:

q Backlog Statusq Inventory counts and storehouse costs

q Reliability in MTBF and failure type/rate for each equipment typeq

Bad actors listq Planned and actual material and labor costsq Overtime rate




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Management System

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Costs


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Implement

Evaluate the performance of the existing CMMS at the facility. If necessary, plan a switch. If the CMMS is not being fully utilized, review

existing work processes to determine if these features need to be included

in maintenance workflow. The CMMS is the documentation of all thingsdone by the maintenance department – preserve that history well.

Maximo is the preferred maintenance management system in bp

Exploration and Production. See current version 5.0 on MRO Softwarewebsite www.mro.com.

Evaluate

Evaluate the effectiveness of the CMMS by verifying its performanceagainst several measures:

q Efficient data entry and retrieval

q Rapid and complete reporting abilityq Small amount of training required to fully utilize systemq Low computer systems administrator upkeep required

For CMMS best practices, see websitehttp://aberdeen.bpweb.bp.com/myplace/maintnet/

For iMax (Maximo) implementation information, see websitehttp://aberdeen.bpweb.bp.com/myplace/imax/

V. CMS Elements Improved by Computerized

Maintenance Management System

The CMS Elements that can be improved by the Computerized

Maintenance Management System include:q Leadership and Organization – Effective use of the CMMS

provides the means of reviewing historical data to drive downmaintenance costs.

q Facility Availability – Details around common failure modes can be used to proactively address potential equipment problems.

q Work Management – Optimized planning and improves the

productivity of the workforce.

q Materials Management – Computerized storehouse inventorycontrol and procurement dramatically improves spare partsmanagement.

q Continuous Improvement – Historical data, planning andscheduling, inventory control, accounting, etc. are all improved by




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Management System

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Costs


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the use of computers. Improved control over these activitiesimproves maintenance performance in the field, which improves

the facility’s performance.




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• Leadership and

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• Continuous

Improvement


and Operating


Costs


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Knowledge

Management


Knowledge Management

I. Introduction

The goal is to have highly knowledgeable people who can operate and

maintain. The trend towards a more highly skilled workforce makes itimperative to have a system for maintenance knowledge that has instant

access, high integrity and actually helps people make decisions.

Overview

In 1993 bp Exploration organized its regional operating centers into forty-

two separate business assets or a federation of assets. Each of these unitswas to have the freedom to develop processes and solutions appropriate totheir particular problems. The best and most adaptable local innovations

could be used elsewhere in the larger company. In effect, bp would beable to draw on the variety and creative power of forty-two moderate-

sized companies. bp wanted to combine the agility of a small companywith the resources of a large one.

Definition

Knowledge is a fluid mix of framed experience, values, contextualinformation, and expert insight that provides a framework for evaluating

and incorporating new experiences and information. It originates and isapplied in the minds of knowers. In organizations, it often becomes

embedded not only in documents or repositories but also in organizationalroutines, processes, practices, and norms.

Working Knowledge, Davenport and Prusak

II. Objectives

Knowledge of maintenance benchmarking, best distinctive practices, and

expert listings will be open to everyone who needs the information to dotheir job better. This knowledge should be linked to the computerizedmaintenance management system (CMMS) as an aid to actual work

instructions, managed for accuracy and applicability, and be directed atachieving business goals.

The computerized maintenance management system will be linked to

Maintenance Plans, engineering documentation, and other maintenance




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• Leadership and

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Knowledge

Management


documents. The vision is to have computerized maintenance informationcompletely accessible at the workplace.

q Assuring personnel have access and know how to use the systemq Assuring they are expected to utilize this resource

q Assuring they will participate in system upkeep and accuracy

Knowledge originates and resides in people’s minds. Members of

knowledge communities should be identified and linked with technology.

Knowledge sharing requires trust. Build relationships through actual andvirtual face-to-face meetings.

Technology enables new knowledge behaviors. Use computerizedmaintenance management systems and internal cyber and web based

assets for collaboration and communication.

Knowledge sharing must be encouraged and rewarded. Training and upper

management support must emphasize the importance of new behaviors.

Management support and resources are essential. Upper management mustinitiate the projects and authorize funds for the core team.

The businesses will support people to bring best distinctive practices

forward to the exploration, production and maintenance community,

allowing the time, money, and resources to accomplish this sharing anddissemination.

III. Process Model (Work Flow Diagram)

Knowledge Management Project Flow

Implementknowledge

competencies

LinkKnowledge to

Training

StructureKnowledge

competencies

DefineKnowledgerequired

RatePerformanceTo knowledge

Link knowledge, competencies,information, data and expertise to on-line

(CMMS) system to provide feedback

Knowledge Management Project Flow

Implementknowledge

competencies

LinkKnowledge to

Training

StructureKnowledge

competencies





Implementknowledge

competencies

LinkKnowledge to

Training

StructureKnowledge

competencies








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Knowledge

Management


IV. Implementation

Analyze

Determine where knowledge useful to business goals is located or stored.These knowledge repositories can be in almost any form but generallyfollow three distinct areas:

q External knowledge (example: competitive intelligence, trainingworkshops, publications, presentations, OEM recommendations,

vendor supplied data)q Structured internal knowledge (example: work processes,

engineering and design standards and practices, internal inspectionreports, RCFA reports, PPM trend data, work histories, training

programs. Outside of the commonly found knowledge repositories, bp has also developed a Competency on Line skill matrices.

Within the skill matrices bp has clearly defined five competencelevels within its operating organization as follows.

1. Awareness-the employee should possess a basic

understanding of the relevant concepts and apply theconcepts in their work environment.

2. Basic Application- the employee should possess a practicalunderstanding of concepts and effectively participates intheir implementation according to the requirements defined

in the related processes.3. Skillful Application-the employee should possess a

thorough understanding of relative concepts and becompetent to facilitate and mentor others in the concepts.

4. Mastery- the employee proactively uses their relevantskills, to provide significant input to improve work

processes, applicable tools and applications.5. Expert- the employee is the primary driver of continuous

improvement in relevant concepts. Employee provides

innovative thinking and influences relative concepts andcompany strategies.

q Informal internal knowledge (example: lessons learned, after action reports or post turnaround critiques, visual workplace for

field personnel)

Design

The most efficient method of attaching or inputting disparate forms of

information and data that then becomes knowledge is to attach or link aMicrosoft Word template form to a computerized maintenance

management system either as part of an equipment record, or job plan.




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Knowledge

Management


Knowledge management assists in the sharing of information and data thatcan then be converted by the user to knowledge. Linking is just data and

information stowage, using the information converts it to knowledge.

Develop

q An “expert” network of employees within the normal work structure to seek out and submit new knowledge

q Develop internal document repositories based on the results of the

analysesq Develop a lessons learned knowledge base to capture major data

and information from unique eventsq Develop single point training lesson plans that provide high-level

descriptions of the knowledge management processes and goals toeducate all personnel

Implement

Knowledge management should start with a recognized business problemthat relates to knowledge. Customer defections, poorly designed products,

losses of key personnel, or a lower “win” rate for service engagements, poor job plans, lack of skills or technical expertise at various levels, or excessive turnover of personnel are all business problems that might be

traced to poor knowledge management.

Success in implementing knowledge management processes can bedescribed by nine factors:

q Knowledge-oriented culture – The absence of knowledge inhibitors in

the culture. People are not afraid or resentful of the company and donot fear that sharing knowledge will cost them their jobs

q Technical and organizational infrastructure – A uniform set of

technologies for desktop computing and communications (re.Microsoft Office, Lotus Notes, Computerized Maintenance

Management System). An established set of roles, organizationalstructures and skills from which an individual project can benefit

q Senior management support – Team leaders must communicate tothe organization that knowledge manage and organizational

learning are critical to success; clearing the way and providingfunding for infrastructure; clarifying the type of knowledge most

important to the company (Like CMS)q Link to business goals – Benefits can be direct, i.e. money saved or

earned; or indirect i.e. reduced cycle time, customer satisfaction,

reduced Mean Time for Repair (MTFR)




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q Process orientation – Knowledge management implementationmust support business processes, and reliability and maintenance

work practicesq Clarity of vision – Define the language and objectives in terms of

reliability and maintenance KPIsq Motivational aids – Knowledge is intimately bound to people’s

egos. Create motivational aids to foster, create, and shareknowledge

q Some level of knowledge structure – All employees must becapable of inputting data and information that can be translatedinto knowledge.

q Multiple channels for knowledge transfer – Templates, after actionreports and lessons learned; post incident or shutdown critiques all

are channels for knowledge transfer.

Evaluate

Effective knowledge management programs are evaluated using KPIsestablished for the particular element being improved and throughassessment procedures.

For the Global Maintenance Network, see websitehttp://maintenance.bpweb.bp.com/

There are also numerous websites available outside of the bp intranet with

valuable information about maintenance and reliability practices.

V. CMS Elements Improved by KnowledgeManagement

ALL CMS Elements can be improved by using the knowledge

management process.

q Leadership and Organization – Valuable internal knowledge, suchas lessons learned, helps reduce overall maintenance costs by

eliminating poor practices.q Facility Availability – Visual workplace operating instructions and

related success stories help identify root causes of equipmentfailures. Using existing information improves the efficiency of eliminating defects, which improves equipment reliability.

q Work Management – By learning from past mistakes anddeveloping internal training programs, planning and scheduling

can be optimized within a facility.






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Equipment Specific

Maintenance Plan /

Reliability CenteredMaintenance

(ESMP/RCM)


Equipment Specif ic

Maintenance Plan and

Reliabil i ty Centered Maintenance (ESMP/RCM)

I. Introduction

The goal of the Equipment Specific Maintenance Plan (ESMP) and

Reliability Centered Maintenance (RCM) programs is to optimize proactive maintenance activities, which will decrease maintenance

spending while improving equipment reliability and availability.Extensive proactive maintenance programs ensure a maintenance

philosophy shift from reactive to condition-based repairs.

Overview

The ESMP and RCM processes are similar in that they each determine thecriticality, analyze the failure modes and effects, and recommend

proactive maintenance tasks for individual pieces of equipment. The processes are focused on equipment reliability and preserving the

availability of the equipment function, which means preventing the effectsof the failure, not necessarily the failure itself. Specific items addressed

during each process include:q Equipment criticality based on risk to the function, in terms of:

• Impact on safety• Impact on environment

• Production loss

• Maintenance cost

q Proactive maintenance (preventive and predictive maintenance andcondition monitoring) activities for maintenance and operations

personnelq Engineering opportunitiesq Spare parts requirements

Definition

The RCM process was modified for use in the exploration, production,and process industries in the early 1990s. Streamlined RCM is variation

of classical RCM, but focuses on common and expected failure modes for equipment and takes credit for operator/technician response and




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Equipment Specific

Maintenance Plan /


(ESMP/RCM)


equipment redundancy where appropriate. Cross-functional teams answer specific questions in order to generate an optimized proactive maintenance

program for each individual piece of equipment.

The ESMP process was derived from the RCM process in that it reviewsequipment individually and determines the appropriate type of proactive

maintenance (preventive maintenance, predictive maintenance, andcondition monitoring) needed. The database also captures engineering

improvement opportunities. The ESMP process uses a cross-functionalteam and is much quicker, but less detailed than the RCM process. TheESMP process meets all requirements established by Process Safety

Integrity Management and the Great Operator Initiative and is the preferred tool for conducting reliability analyses.

Both processes use computer software to manage the information

generated for each piece of equipment.

A decision tree has been created to help differentiate between the use of ESMP and RCM. Cyber-Alpha and Cyber-RCM are other reliabilityanalysis techniques that are used to perform maintenance reviews and cost

benefit analyses. The programs help identify maintenance activities,which, although within a production critical system, are of low value and

can thus be removed from the proactive maintenance program. Cyber-Alpha and Cyber-RCM are rarely used. ESMP and RCM are the methods

of choice for equipment reliability analysis.






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Equipment Specific

Maintenance Plan /


(ESMP/RCM)


Following are process models for the ESMP and RCM processes.




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Maintenance Plan /


(ESMP/RCM)







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Equipment Specific

Maintenance Plan /


(ESMP/RCM)


IV. Implementation

Analyze

Reliability analysis is performed on distinct process areas or operating

units, which includes vessels, rotating equipment, other mechanicalequipment, and instrumentation. Review the facility for distinct areas of

equipment (i.e. operating units) and create a prioritized list for full-facilityESMP/RCM implementation. Units analyzed first are usually productioncritical units, not utilities-type units. Other items to consider when

prioritizing the ESMP/RCM studies include unit reliability history, unitmaintenance costs, downtime schedule, and personnel availability.

Designate a process leader/champion who will have prime responsibility

for organizing the cross-functional teams, making meeting locationsavailable, serving as a focal point for questions during the ESMP/RCM

process, and ensuring the recommendations are forwarded to theappropriate personnel for actual implementation.

Ensure the understanding that reliability analysis is the selected methodfor ensuring the continued operation of the facility by increasing

equipment availability and decreasing maintenance spending.

Design

The ESMP and RCM processes use cross-functional teams with a

facilitator familiar with the process. Facilitators can be contracted fromreliability consulting firms or they can be trained personnel within the

facility or from other locations. Using an outside consultant is the preferred method for several reasons:

q Provide fresh perspective and avoid internal biasq More efficient use of company personnel timeq Fewer interruptions from the field due to scheduled meetings

q Provide information from previous studies on similar units

Company personnel involved in ESMP/RCM studies need training on the process to be used. bp Exploration and Production Technology Group

(E&PTG) can provide training and facilitation support for these studies.In addition to internal support, several courses and books exist on the

subject to assist in the training effort. Externally led studies often includetraining with the study facilitation. Software exists to manage the findingsof the study.




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Equipment Specific

Maintenance Plan /


(ESMP/RCM)


Develop

Develop a plan to utilize all the information generated during theESMP/RCM process.

q Enter preventive maintenance tasks as recurring work orders in the

CMMSq Create or modify spare parts records in the CMMSq Enter predictive maintenance and condition monitoring tasks into a

field data collection system

q Enter one-time opportunities into an action item tracking systemCreate a feedback loop to review the findings every year to ensure that the

recommended tasks are being effective according to the key performanceindicators (KPIs) on equipment reliability

Implement

The ESMP/RCM process includes the following steps:

q Identify the system boundariesq Identify the performance objectives of the system to be studiedq Separate the system into distinct functions that account for all the

equipmentq Perform a failure modes and effects analysis (FMEA) on each

piece of equipment

q Determine if each piece of equipment is critical or non-criticalq Select the appropriate proactive maintenance tasks to address the

effects of failureq Implement the recommendations in the field

q Create a Living Program so that the study can be revisited

Data generated by condition monitoring and predictive maintenanceactivities must be reviewed and analyzed. Once this data has beenconverted to valuable information, appropriate action must be taken based

on the findings. If the operations or maintenance departments do not takesuitable action in a timely manner, the value of the data will be lost. See

the CMS Process section on Condition Monitoring and Process DataCollection for information regarding capturing and analyzing condition

monitoring data.

Evaluate

Each ESMP/RCM study should be able to be completed within threemonths. Recommendations from the study can be implemented over thefollowing several months. Some may require a unit downtime to complete

(i.e. function testing protective instrument systems, new installations, etc.).




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Equipment Specific

Maintenance Plan /


(ESMP/RCM)


The primary output from a study is the proactive maintenance program.Results from the condition monitoring activities will not be immediate, but

improvements in equipment reliability should become apparent within 12months. Key performance indicators (KPIs) on equipment reliability and

availability and maintenance time on PPM activities and condition-basedrepairs should be increasing.

Other benefits for a reliability analysis program are listed below.

QUALITY SERVICE COST TIME RISK • Increased Plant

Availability(2 - 10%)

• Elimination of chronicfailures andinherentreliability

problems• Flexibility to

accommodate productionrequirements

• Documented basis for maintenance program

• Improvedownership for maintenance program

• Better teamwork andcommunication

• Improvedunderstandingof the‘customer’requirements

•

Less disruptionof production processes dueto unplanned breakdowns

• Optimizedmaintenance program

• Reducedlevels of scheduledmaintenance(10 - 50%)

•

Better maintenancecontractadministration

• Clear guidelines for application of newmaintenancetechnology

• Longer life of expensiveequipment

• Reduction in

secondarydamage

• Shorter repair times

• Reducedduration of scheduledoverhauls

• Extended periods

betweenoverhauls(60 - 300%)

• Safety andEnvironmentalintegrity a priority

• Reducedlikelihood of multiplefailures as

maintenanceinspectionintervals are based onallowablelevels of risk

• Reducednumbers of routineinvasive tasks

• Reduced risk to plantmaintenanceworkers

For more information on the ESMP process, see the websitehttp://houston.bpweb.bp.com/reliability/esmp.htm

The RCM process has details at websitehttp://houston.bpweb.bp.com/reliability/Rel_Maint_Proc_Tools.htm

V. CMS Elements Improved by ESMP/RCM

The CMS Elements that are improved by the Equipment SpecificMaintenance Plan and Reliability Centered Maintenance programs are:

q Leadership and Organization – Creating an optimized proactivemaintenance strategy directly impacts bottom-line results.




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(ESMP/RCM)


q Facility Availability – Creating and performing proactivemaintenance increases equipment reliability and availability.

q Work Management – ESMP/RCM develops optimized proactivemaintenance plans, which take advantage of planning and

scheduling benefits for common tasks.q Materials Management – ESMP/RCM provides recommendations

for spare parts, including critical spares listing.q Continuous Improvement – Application of the recommendations

from ESMP/RCM studies ensures continued improvement of equipment reliability and availability.




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Defect Elimination

Program


Defect El imination Program

I. Introduction

The removal of defects in running equipment is now recognized as a major

contributor to operational performance improvement. Defect Elimination(DE) is a shift in thinking from the “if it ain’t broke, don’t fix it” mindset.

Developing a strong DE competency is strategically significant. Focusingthat competency to improve integrity/safety compliance and to increase

operational performance is a high-value activity. Initial DE efforts shouldcreate return on investment of 700-1000%.

The ability to remove defects begins with problem analysis versus the

“jump to a conclusion” of conventional problem solving. Too often,conventional problem solving addresses only the results and symptoms of failure. The aim of DE is to address the root causes of equipment failure

and in so doing eliminate the opportunity of future failure. Addressingroot causes requires analysis.

DE efforts utilize two pathways for effective problem analysis:

q Root Cause Failure Analysis (RCFA) provides a common andstructured process for effective problem analysis. It is a formal,

rigorous, logic-driven method (facilitated by trained individuals)utilized to address the big opportunities for improvement. RCFAdetermines and verifies roots of the:

q physical causesq human causes

q organizational and management system causesRCFA recommends corrective actions that will eliminate the

causes of failureq mini-RCFA (mRCFA or DE RCFA for operators/technicians)

incorporates the thinking processes of RCFA, but is streamlined

for widespread daily use by small group teams.

A third failure analysis process is used to conduct major incident (MI) andhigh potential (HiPo) incident investigations. Formal incident

investigations are part of the Health, Safety, and Environment (gHSEr)

initiative, but are closely related to the defect elimination effort.

Because DE utilizes problem analysis in RCFA and mRCFA, action tocorrect root causes automatically eliminates defects.

q Physical assets become “better than new”.




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Defect Elimination

Program


q Processes operate with less variation.q Reactive maintenance is eliminated as root causes for equipment

failures are removed.q Analyzing failures creates a proactive mindset in the workforce.

q Organizational and management systems changes influence theentire asset base. This powerful leveraging effect improves cost

control and increases equipment availability and uptime.

Business Units/Performance Units (BU/PUs) should deploy formal RCFAdriven DE first because it involves a smaller number of people near thetop of the organization. It begins with data analysis of integrity/safety

compliance, Choke Model operational performance, and CMMSequipment history. Leaders assign RCFA trained analysts to DE teams

that address the biggest opportunities for improvement.

Completed RCFA-driven DE projects yield improvement in performancethat frees up human time and energy for more DE. A positive “snow ball”

effect occurs as the expectation of continuous improvement takes hold. Atthis point, the BU/PU is ready to utilize distributed DE by involving smallteams.

Beginning at Toyota in the 1950’s, small teams of hourly workers were

charged to remove equipment defects as a means of increasing uptimewhile eliminating the need for repairs. The performance improvements

fueled performance gains that allowed the company to improve products.

The wisdom here is that early human intervention stops the defect growth

process that eventually leads to equipment failure (the adage, “a stitch intime, saves nine” works). The small team DE efforts are an example of

“good cost” that yields a handsome return on investment vs. the “bad cost”of waiting until the equipment fails and taking the hit on operational

performance and repair cost.

Most organizations have taken a swing at small group activities. Nearlyall these efforts failed to produce the results that create competitiveadvantage. History shows the real measure of success was due to two key

elements:q The early leaders of DE intuitively knew where to apply the

process for the most gain. They selected the projects and createdthe environment where workers were expected to actively

participate in DE activities.q The early leaders of DE made sure that the small teams used

problem analysis techniques rather than conventional problemsolving.




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Today, management systems like KPIs, eChoke, and CMMS (bad actors) provide the information so leaders do not need to depend so heavily on

intuition. BU/PU leaders control the DE effort by prioritizing action plansand utilizing both formal RCFA driven DE and mRCFA driven DE with

small teams.

Failure Modes and Effects Analysis (FMEA) is a reliability engineeringactivity that summarizes the losses due to failure. FMEA losses for

exploration and production petroleum assets typically fall into the twomajor categories of lost production revenue and the costs for repair.Further analysis shows the distribution of failure effects to follow Pareto’s

80/20 rule:- 20% of the failures cause 80% of the losses (Major Failures) – the

Critical Few- The remaining 80% of the failures will cause only 20% of the

losses (Minor Failures) – the Non-Critical Many

Formal RCFA driven DE should work on the top 20% of failures whiledistributed mRCFA should address the remaining 80%.

It is not feasible to analyze every single equipment failure, so each BU/PUmust establish a minimum threshold that an equipment failure must pass in

order to require some type of analysis. Potential threshold levels are:q 10M$ of production loss or repair cost

q One failure per two years

In order to assist in the determination of the level of analysis required, a

decision tree has been created to differentiate when to use a formalincident investigation, a formal RCFA, or a mRCFA.




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Defect Elimination

Program


Once the DE program is functioning smoothly, all failures meeting thethreshold limits will be analyzed by either a formal or a mini RCFA.

Recommendations from these analyses will help improve equipmentreliability.

The threshold limits and differentiation levels must be periodicallyreviewed and changed as necessary to ensure that no important equipment

failures are being missed and that the number of failures requiring ananalysis is not too high.

BU/PU leaders need to prioritize both the formal and mini RCFA DE

efforts. Failures that significantly exceed the threshold values (i.e. repair cost over 500M$, production loss over 10mboe, or failure rates over 4

failures per year) should be at the top of the list for formal RCFAs.

Further prioritization within each list can be done. Examples include:

q Prioritize by criticality (analyze critical equipment first)q Prioritize by failure cost (analyze highest costs first)

q Prioritize by failure rate (analyze highest failure rates first)q Prioritize by date (analyze oldest failures first to capture

information from technicians before it is forgotten or analyze the

most recent failures first to stay current)q Prioritize by information (analyze failures with the most readily

available information first)




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II. Objectives

Business Units and Performance Units (BU/PUs) will recognize the valueof focused DE projects in improved equipment, processes, people, and

management systems that will in turn raise operational effectiveness and

integrity/safety compliance.

Process Safety Integrity Management, Choke Model, KPIs, and CMMSdata analysis will surface opportunities for improvement that lend

themselves to DE.

BU/PU leaders will guide selection of projects and foster growth of DE byinitiating the following:

q Raise the awareness level of the effects of defects in the currentoperational environment:

q The Operations Excellence Simulator is an excellent placeto start because it shows the impact of defects on

operational and financial performanceq DE activities generate the biggest gains for the effort

consumed (700-1000% Rate of return)

q DE activities naturally foster proactive behaviors that makeoperations and maintenance easier

q Show how the DE projects add value by improving integrity/safetycompliance along with operational performance

q Create the expectation that participation in DE is part of theworker’s job responsibility and in everyone’s best interest

q Train analysts, operators/technicians, maintenance technicians, and

professionals in DE techniques (bp’s Operations ExcellenceSimulator has proven itself as a best practice for launching DE

efforts)q Prioritize and select DE projects by utilizing data analysis

q Champion the DE projects by setting time-bound expectationsq Assure that DE solutions recommended by the teams are

implemented

q Monitor performance metrics and take required corrective actionq Publicize successes

q Share learning with other BUs/PUs

Outcomesq Proactive behaviors increase as reactive behaviors decreaseq

Integrity/Safety compliance increaseq Management systems improveq Reliability metrics improve

q Overall operational effectiveness improvesq BU/PU financial performance improves




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III. Process Models and Implementation




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Program


The RCFA-Driven and mRCFA-Driven DE processes can be utilized

independent of each other. The recommended approach is to begin withthe RCFA-Driven DE targeting the biggest opportunities for improvement.

Utilize mRCFA DE after gains from the RCFA-Driven DE have freed uplabor currently utilized in reactive repair and recovery.

Leaders set the stage by raising awareness of the value of DE projectswithin the BU/PU. A recommended best practice is utilizing bp’s

Operational Excellence Simulator.

Training in problem analysis and defect elimination techniques is requiredin both paths. Training needs decrease rapidly as personnel participate in

defect elimination and learn with on-the-job-training. The processes areenhanced by the involvement of facilitators who remove roadblocks.Team leaders should involve themselves in this role.

Both paths require data analysis and review by BU/PU leadership prior to

selecting the best opportunities for improvement.

Most important is the role of “Champion” in fostering DE efforts. This

approach is recommended:q Calculate the value in increased throughput and reduced expense

that will result from the DE projectq Set the expectations for project outcomes (what and when)






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Condition Monitoring and Process Data

Collection


Condition Moni tor ing and

Process Data Collection

I. Introduction

Condition Monitoring is a fundamental component of the bp CommonMaintenance Strategy. The role of condition monitoring, simply stated, is

to minimize the level of unplanned production outages and secondaryequipment damage due to failure. Condition monitoring and predictivemaintenance are the backbone to a strong and effective condition based

maintenance program. A significant portion of the program is the ProcessData Collection system, which uses computer hardware and software to

assist in data gathering, storage, and analysis.

Overview

The concept behind condition monitoring is measuring and trending the

actual equipment condition and performance to enable the optimizedextent and timing of maintenance intervention (i.e. repairs). Possessing

this information prior to a failure allows for the proper planning andscheduling of maintenance work and the minimization of the impact on

production capability. Condition monitoring data can also be used to predict the remaining useful life of facility systems and specificequipment. Combined with equipment history and operational context,

condition monitoring provides operations and maintenance withinformation from which informed decisions are made.

There is a wide range of condition monitoring techniques available to

address multiple types of equipment. For a condition monitoringtechnique to be effective, the failure mode of the piece of equipment mustnot be random – there must be a definite increase in probability of failure

upon the detection of some abnormal operating condition. Due to thisreason, most condition monitoring techniques focus on rotating

equipment. For the majority of fixed equipment, inspection techniques areused to predict failures. These techniques are covered in the CMS Process

– Quality Assurance and Precision Maintenance Program and in ProcessSafety Integrity Management (PSIM).

For equipment with random failure modes, such as thermocouples andelectrical switches, condition monitoring is not effective. Failure finding

tasks are used to verify the proper operation of these pieces of equipment, but does not provide any indication of when the piece of equipment may

fail in the future.




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Collection


The Process Data Collection system uses a handheld computer that leads a

user (i.e. operator/technician, planner, maintenance craftsperson, etc.)through a round of tasks. The data that is collected is uploaded into a

central database, which allows for data interpretation. Alarm levels are setso that immediate action can be taken in the field. The user also has the

ability to take shift notes and create work order requests in the field whenabnormal conditions are discovered.

Definition

Condition monitoring is the ongoing surveillance of the operatingequipment or production process to ensure precise performance and to

detect abnormal changes indicative of an impending failure or that theequipment has already failed. Condition monitoring includes the human

senses and equipment diagnostics to monitor and evaluate rotatingmachinery and fixed equipment conditions continuously or periodically

during operation. The most sensitive condition monitoring techniques usespecialized instruments to monitor the physical condition of the processequipment (also known as predictive maintenance).

A condition monitoring technique is useful if it can predict equipment

degradation early enough to correct it at reduced cost and downtime. Thetime between detection of the abnormal condition and the equipmentfailure is called the P-F interval (potential to functional failure time span).

In order to be sure equipment degradation is detected, the conditionmonitoring must be done at a frequency less than the P-F interval.

Industry experience has shown that condition monitoring task interval can be set at approximately 33% of the known P-F interval.

There is a different P-F interval for every condition monitoring techniqueand type of equipment. Some P-F intervals are consistent; however, some

P-F intervals can be influenced by external conditions. For example,




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Collection


bearing wear as detected by vibration analysis has a certain P-F intervalwhen the rotating equipment is operated properly and has the correct lube

oil in the bearing housing. However, if the pump experiences cavitation,the wrong lube oil is used, or water gets into the lube oil, the P-F interval

can change dramatically. Consider the typical operating conditions inorder to select the proper condition monitoring task interval. If the task

interval is too long, the failure may not be detected before the equipmentfails. If the task interval is too short, manpower can be wasted.

The terms condition monitoring and predictive maintenance are usedinterchangeably in the Common Maintenance Strategy. Both methods of

proactive maintenance measure equipment condition without affecting theoperation of the piece of equipment.

The data collection program is a system that uses hardware (handheld and

desktop computers, predictive maintenance tools, network components,etc.) and software (user round programs, database, reporting tools, etc.) to

assist in the handling of the condition monitoring data collected from thefield. Effecting data analysis converts the data into valuable information.A typical data collection process is shown below.

Log

Sheets

HOST COMPUTER

Exception

Reporting

Report Manager

Hand Held

Data-logger

CMMS

DATABASE

FORMAL

OPERATOR

TASKS

IT NETWORK

Work Requests

Auto Generated

Process

Data

Trends

CM System Database

CM TECH

Onshore

Historical

Process & Machinery

Data Archive

Detailed Machinery Diagnostics

Vibration

Performance Monitoring

Turbo Compressor Fouling

Thermal Degradation etc..

OTL/LEAD TECH Offshore

ENGINEERING

OVERVIEW

First line Analysis

of Data & Reports

Process Engineer

RotatingEqpt Eng.

RTL/Maint. Analyst

First Line

Data

Analysis




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II. Objectives

The condition monitoring program is the actual proactive maintenanceactivities that are taken to improve equipment reliability. By monitoring

equipment condition, faster, cheaper, and simpler repairs can be made to

correct the degrading piece of equipment. By catching failures early,maintenance costs and repair time should be decreasing, while equipmentreliability and availability are increasing. Over the long-term, overall lifecycle costs for the equipment should decrease.

Including the operators/technicians and the maintenance personnel in

proactive maintenance improves:q Equipment reliability

q Operator/technician ownership of equipmentq Personnel knowledge and proficiency

q Culture shift from reactive to proactive maintenanceq Maintenance cost reduction

Data from condition monitoring activities is best used to schedulecorrective maintenance tasks. This data should be used to optimize

maintenance intervention (i.e. condition based maintenance) and replacetime-based intrusive maintenance tasks. Eliminating time-based

preventive maintenance tasks improves equipment reliability by reducingthe effect of infancy failures (infant mortality), which occur when the

equipment is started up. Using condition monitoring to reduce intrusivemaintenance activity also increases equipment availability becauseequipment condition can be assessed while the equipment is in service.

Increasing equipment availability can lead to maximum productionutilization.


Condition Monitoring Process Model

The condition monitoring process shows the five steps:q S Schedule – Schedule the condition monitoring data to collect

q C Collect – Collect the data using manual or automated meansq A Analysis – Analyze the data to predict imminent failures

q

D Decision – Decide the appropriate course of actionq A Action – Take the appropriate steps to address the situation




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IV. Implementation

Analyze

Condition monitoring techniques are usually recommendations fromEquipment Specific Maintenance Plan (ESMP) or Reliability CenteredMaintenance (RCM) studies. For most applications within the oil

industry, there is a list of standard techniques, which will be discussed briefly below. Several other techniques can be used, but the ones

discussed here are the most common for the industry.

Typically, operators/technicians use the process data collection system to

perform the majority of the equipment monitoring since they are the mostclosely involved with the equipment on a daily basis. The

operators/technicians take ownership of the equipment and serve as the‘first line of defense’ against equipment breakdown and poor performance.

Some condition monitoring techniques require specialized training, somaintenance personnel or contractors will perform the monitoring. Other

computerized data management systems are used to effectively convert thedata into valuable information.

Generic PdM Process

Schedule data collection

Load data to PdM software

Confident diagnosis?

Review alarm report

Work Done?

M a i n t e n a n c e

F o r e m a n

O p e r a t o r

M e c h a n i c

S p e c i a l i s t

n

Action decision

y

PdM data collection due

Work Order in Maximo

Review data

P l a n n e r

Analyse data

yn

MAXIMO

Collect data

S

C

A

D

A

End

Gather other PdM & Maximo data

Possibility of poor sample/data?

Rush sample/retake datan

y

WorkExecution

Process




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Design

The technology used in condition monitoring is typically developed by

outside companies and sold to users within the industry. All condition

monitoring results should be stored in a database to allow for dataanalysis. Some condition monitoring techniques use a proprietarysoftware program to store and analyze the data. Others can store data onany computer system. For example, condition monitoring instruments,

such as, vibration probes and infrared temperature guns, which displayreadings on the instrument, are ideal applications for the Process Data

Collection system. Collecting valuable equipment condition data on paper round sheets makes data analysis very difficult, which is a significant

advantage of the computerized data collection system.

The ideal source for the data to be collected in the field is the results froman ESMP or RCM study. An ESMP/RCM study results in an optimized

proactive maintenance program, which includes predictive maintenanceand condition monitoring tasks, which are perfectly suited for the processdata collection system.

Develop

As with all computer systems, the condition monitoring readings aresimply numbers until someone analyzes them for evidence of equipment

degradation. Develop a plan for the timely review of the data after it has been collected. If necessary, consider generating a routine preventive

maintenance (PM) task in the CMMS to ensure that data analysis isscheduled and completed per the proactive maintenance program.

Appropriate alarm levels are needed for each type of monitoringtechnique. Abnormal condition response charts can be developed to aid inthe proper analysis of the data.

Once the data analysis is complete, ensure that the proper action is taken

to address any abnormal conditions. Recognizing that a piece of equipment is degrading is the first step, but the most important step to taketo improve equipment reliability and reduce maintenance costs is to take

proactive action to resolve the equipment degradation. The purpose of condition monitoring tasks is to identify abnormal conditions and take

appropriate action before a significant failure or breakdown occurs.

Implement

Obtain adequate training on the proper use and analysis of each type of

condition monitoring technique. Develop programs to review the data and






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systems can be reduced if they are specified in the design stage of equipment selection. Most machinery can be retrofitted with on-line

vibration monitoring at significant additional expense, which can be justified based on the criticality of the machine.

Thermography

All objects above absolute zero (-273 ºC) emit infra-red radiation,which can be equated to temperature. Thermography is the analysis of

these temperatures. This technique does not require contact with or shut down of the equipment being monitored. Thermography usesinfra-red scanners to measure the temperature of a variety of

equipment, such as:q Rotating equipment bearings

q Motor control center circuit breakersq Furnace tube skin temperature

q Liquid levels in vessels

q Leakage through:q closed valves

q relief valvesq steam traps

q reciprocating compressor valves

Infrared scanners can be simple temperature guns, which display thetemperature of the point, or electronic imagers, which display a color

or grayscale picture of the object.

Thermocouples and RTDs (Resistive Temperature Devices) can be

used to continuously monitor temperatures.

Oil Analysis

Oil analysis (tribology) includes the evaluation of the condition of lubricating and hydraulic oils. Lube oils and hydraulic oils are critical

to the operation of machinery systems. Complete oil analysis looks for several indicators of degraded oil:

q Wear particles (ferrous and non-ferrous)

q Contaminationq Water content

q Viscosityq

Remaining additive lifeq Oxidation levelq Total acid and total base numbersq Flash point




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Collection


Usually, oil analysis is performed on a monthly to quarterly frequency by an outside laboratory. Results are usually returned two days after

the sample, which gives ample time to replace or resample the oil before substantial additional damage is done. The P-F interval for oil

analysis is typically several months. Oil analysis results can beentered into a database so that trending analysis can be done to see if

the oil degradation is accelerating. A long-term relationship withcertain laboratories can allow the lab to maintain the oil analysis

history. Samples can be returned with the past trend as well as thecurrent oil sample data.

Full spectroscopic and ferrographic oil analysis is typicallyrecommended for lube oil and hydraulic oil systems. Portable ‘Go/No

Go’ testers are not economically practical for oil analysis, but caneffectively provide information on water content in the oil.

Ultrasonic Analysis

Ultrasonic instruments detect sounds beyond the limits of normal

human hearing and translate these sounds to the range of humanhearing. Electrical systems, fluid systems, and machinery all produce

constant ultrasound patterns. Trained technicians can recognizechanges in the sonic signatures as loose connections, degrading

equipment, or component wear. An ultrasonic instrument can detectsubtle changes in this ultrasonic signature and pinpoint potential

locations of failure before they can cause costly damage.

The most effective industrial applications for ultrasonic analysis are:

q Detecting leaks in pressurized or vacuum systemsq Inspecting steam trapsq Monitoring rotating equipment bearingsq Detecting partial discharge in electrical equipment

q Leakage through reciprocating compressor valves

Motor Analysis

Motor analysis encompasses several checks of electric motors,including:

q Power supply qualityq Insulation resistance (megger, partial discharge)

q

Motor current signature analysisq Phase-to-phase resistance and inductance

q Air gap causing magnetic imbalanceq Motor winding resistance to ground




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The majority of the motor analysis techniques must be done while themotor is not on-line and require a skilled technician or contractor to

perform the data collection and analysis; however, there is technologyavailable for dynamic motor testing. The P-F interval for most of the

tests is several months. One of the most effective preferred provider relationships to start is one for electric motors. Frequently, sites will

establish a minimum size (horsepower) motor that will be repaired (i.e.50 HP). Motors under this limit that fail are replaced. Extensive

motor condition monitoring can therefore be avoided on small non-critical motors.

Pressure/Volume Analysis (Beta Analysis)

Pressure/Volume analysis is performance testing and condition

monitoring for engines and reciprocating compressors. Highlyspecialized technicians evaluate the performance of the equipment to

diagnose potential problems with equipment internals, such as, piston

rings, liners, and suction and discharge valves. Parameters such asindividual cylinder suction and discharge pressures and temperatures,

overall flow rates, crankshaft phase reference probe readings, andhorsepower are captured and compared with how the machine should

be performing. The findings reveal performance deficiencies, such as,valve leaks, cylinder clearance, and valve efficiency.

Gas Turbine Performance Monitoring

Typically, gas turbine compressor efficiency is measured online tohelp optimize performance. Decreasing compressor performance is

usually the first indication that maintenance is needed. Maintenance

includes rotor washes to complete overhauls based on the performancemeasured. Pressures, temperatures, and speeds are collected tocalculate compressor performance. In addition to performance

monitoring, gas turbines usually also receive borescope inspections,vibration monitoring, and lube oil analysis. Specific monitored values

include:q Torque coupling on compressor trainsq Gas generator compressor section inlet/outlet temperatures and

pressuresq Power turbine exhaust temperature profiles

q Fuel consumption and compositionq

Air filter differential pressure

Steam Trap Monitoring

Steam is one of the most valuable and least available utilities in most

facilities. Ensuring that steam is not being wasted has significant




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economic benefits. Steam traps should open and close quickly andcompletely to reduce steam and condensate losses. Steam trap

monitoring checks the operation of steam traps using ultrasonic andtemperature instruments (both condition monitoring techniques

discussed above). Usually, steam traps are logged in a database toaccount for all of them and review failure rates. Steam traps that leak

are scheduled for replacement.

Borescope Inspection

Borescope inspection allows for internal inspection of equipmentwithout having to open the equipment. Borescope inspection includes

flexible (fiberscope) and rigid (non-flexible) instruments. Borescopescan be used to inspect a variety of different equipment, including:

q Gas turbinesq Engines

q Vessels

q Exchanger tubes

As with all visual inspection, the equipment must be down and trained personnel are needed to properly evaluate the equipment condition.

Degrading equipment conditions usually detected by borescopeinspection include:

q Cracksq Erosion

q Wear

Performance Monitoring

Performance monitoring describes routine operator/technician duties.When unit walk-throughs are made, operators/technicians visually

inspect equipment, listen for abnormal sounds, and monitor equipment performance. Using performance monitoring as a condition

monitoring technique requires logging the readings in a database for trending analysis. Usually, performance monitoring requires readingof local gauges already existing in the field. Sometimes, instruments

may be needed to collect the readings. In either case, using a field datacollection system is an efficient way to collect and analyze the results.

Conditions that are monitored are:q Pressure

q

Temperatureq Flow rate

q Motor load

Equipment that can benefit from routine performance monitoring

includes:




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q Pumpsq Compressors

q Heat exchangersq Filters and strainers

Consider using visual workplace signs and alarms in the data

collection system to assist in rapid data evaluation in the field.

Control Loop Optimization

Approximately 50 percent of control loops within a facility have

equipment, design, or calibration problems and over 85 percent of regulatory control loops are not effective in automatic control. Loop

analysis helps diagnose these problems. The preferred loop analyzer isProtuner 32 from Techmation. The loop analyzer collects data on

valve hysteresis and performance, specifies proper tuning parameters,and simulates performance for control loop optimization.

Evaluate

Evaluate the effectiveness of the condition monitoring program and eachindividual data point collected. Key performance indicators (KPIs) on

equipment reliability and the percent of condition-based work ordersshould be increasing, while maintenance costs should be decreasing. Twoimportant KPIs for the predictive maintenance program are:

q Predictive Maintenance Effectiveness – the number of unexpectedfailures per 1000 operating hours

q Predictive Maintenance Compliance – the percent of predictivemaintenance work orders completed of the total predictive

maintenance work orders scheduled

A flow chart used to evaluate the predictive maintenance programeffectiveness is shown below.




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V. CMS Elements Improved by Condition

Monitoring and Process Data Collection

The following CMS Elements can be improved by the Condition

Monitoring and Process Data Collection Program:q Leadership and Organization – By monitoring equipment

condition, condition-based maintenance increases, which decreasesmaintenance spending.

q Facility Availability – Monitoring equipment condition improves

equipment reliability and availability.q Work Management – Data collection systems help improve the

schedule compliance of proactive maintenance tasks.q Change Management – Improved equipment availability reduces

lost production.q Continuous Improvement – Using computers to help run the

business keeps equipment reliability on the rise.

Machine failure

End

Log failure

to PdM KPI

Add machine to

PdM program

Review PM program to

cover failuremode

Is the machine in the

PdM program?

Should it be?

Did you knowthe failure was

coming?

Could the PdM

technique pick upthis failure mode?

Did you allow the

failure for a goodbusiness reason?

No

No

No

No

Yes

Yes

Yes

PdM Effectiveness Decision Chart

Yes

No

Yes

During the daily meeting

Machine failure

End

Log failure

to PdM KPI

Add machine to

PdM program

Review PM program to

cover failuremode


PdM program?


PdM program?

Should it be?Should it be?


coming?


coming?

Could the PdM


Could the PdM


Did you allow the


Did you allow the


No

No

No

No

Yes

Yes

Yes

PdM Effectiveness Decision Chart

Yes

No

Yes

During the daily meeting




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Data Analysis


Data Analysis

I. Introduction

Organizations that turn data into information that focuses people’s energy

on value-added activities will always enjoy competitive advantage.

Data Analysis within the context of the CMS has two distinct purposes:

q Failure/Loss Data Analysis sets the improvement agendaq PdM Data Analysis is embedded within most of CMS reliability

technologies

Failure/Loss Data Analysis identifies the biggest opportunities andcandidates for defect elimination. BU/PU leaders use this information to

set the agenda for improvement. Failure/Loss Data Analysis begins bytranslating the business and operational plans into equipment performancestandards. It gathers Choke Model, CMMS, ESMP/RCM and KPIs input

to gauge current performance. Failure/Loss Data Analysis then identifiesthe gaps that surface opportunities for improvement. Failure/Loss Data

Analysis tracks the effectiveness of improvement projects by trendingactual performance against standards.

PdM Data Analysis is the crucial step for the successful deployment of

modern reliability technologies. Without competent interpretation of gathered data, these technologies cannot add value. The GO Strategyrequires operational performance that will not tolerate unplanned and

excessive downtime. Deployment of non-intrusive condition-basedtechnology that predicts and mitigates equipment failure is the key

ingredient to the GO Strategy and bp’s business success. Examples of technologies dependent on good Data Analysis include:

q Vibration Analysisq Thermographyq Oil Analysis

q Ultrasonic Analysisq Motor and Circuit Analysis

q Beta Compressor Analysisq ESMP/RCM Task Analysis and Feedback Reporting

PdM Data Analysis is covered in generic fashion here; please refer to theCMS Processes for Condition Monitoring and ESMP/RCM for details onthe Data Analysis processes embedded in these technologies.




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Data Analysis


II. Objectives

BUs/PUs utilize the CMS Process of Data Analysis to generate the

necessary information and ensure that the focus of CMS is in line with the

bp business drivers and the GO directive Team Vision.

Failure/Loss Data Analysis provides internal guidance for the CMS process. Trends in operational performance Choke Model, CMMS,

ESMP/RCM and KPIs feed into Data Analysis to provide information thatBU/PU leaders use to set the agenda by going after the biggest

opportunities.

PdM Data Analysis activities are recognized as the key link in utilizingmodern reliability techniques to improve asset performance. PdM Data

Analysis predicts at least 85% of failures and trends up to routinely predicting 95%+ of failures. PdM Data Analysis creates planned work

that supports precision maintenance repair practices and proactivelyminimizes unplanned and unscheduled equipment downtime.

BUs/PUs will ensure that continuous improvement of effective DataAnalysis is carried out on a routine basis by following a rigorous Work

Management process. This will ensure that the organization’s CMS process remains focused on the biggest opportunities for improvement

within the context of achieving the GO Team vision.

Expected Outcomes

q

Proactive behaviors increase as reactive behaviors decreaseq Integrity/Safety compliance increaseq Management systems improveq Reliability metrics improve





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Data Analysis


III. Process Models and Implementation

Failure/Loss Data Analysis

Inputs to Failure/Loss Data Analysis include:

q CMMS Equipment Historyq ESMP/RCM Criticality Analyses

q KPIsq Operational Efficiency and Loss Reporting (Choke Model)

q Business and Operational Plans/Budgetsq Process Safety Integrity Management Reporting

Outputs of Failure/Loss Data Analysis:

q Establish equipment performance standards in support of the GOStrategy and Business/Operational Plans

q Identification of the major failures responsible for the production

losses and high lifting costs (history shows 20% of failures account

for 80% of the losses)q Identification of high cost and frequent repair “Bad Actor”

opportunities for improvement (history shows that 20% of the

equipment consumes 80% of the lifting cost for repairs)q Identification of loss reduction opportunities and “Defect

Elimination” candidatesq Recommendations for CMS process improvements that will

maximize support of the GO Strategy

q Trending of actual versus plan and standardsq Recommendations for adjustment of improvement plans based on

performance feedback

BU/PU leaders set the stage for the successful deployment of Failure/LossData Analysis:

q Raise awareness of the important role Failure/Loss Data Analysis

plays in guiding the CMS Process and GO Strategy.q Staff this area with competent, well respected professionals (please

refer to CMS Optimized Staffing for guidance)q Demonstrate commitment to utilize the Failure/Loss Data Analysis

process to improve BU/PU focusq Let all know the importance of accuracy in reporting equipment

related data

Initial data gathering compares the business plan expectations and the GOStrategy versus current performance. Failure/Loss Data Analysis takesthese high-level standards and drives them down into performance

standards for the individual equipment assets. Properly developedstandards include equipment availability, operational efficiency and

maintenance expense parameters.




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Data Analysis


Performance gaps are differences between current equipment performance

and the desired level of performance operational standard. Action plansthat close the gaps identify the opportunities for improvement.

Development of recommended action plans follows these steps:

q Identify the biggest opportunities for improvementq Identification of the major failures responsible for the

production and high lifting cost lossesq High cost and frequent repair “Bad Actor” opportunities for

improvement

q Loss reduction opportunities through identification of “Defect Elimination” candidates

q Identify what activities need to be done to cause the plannedimprovement (please refer to the CMS Process of Defect

Elimination for more detail)q Detail the plan for achieving the improvement

Deployment of action plans includes:q Set the stage for launching the action plan by insuring

organizational commitment and supportq Champion the improvement plans

Continuously analyze the results vs. the expectations in the standards and

the improvement project plans.

Adjust action plans to meet the desired targets.

Celebrate success and share learning with other BUs/PUs.

PdM Data Analysis

The flow diagram below shows how Data Analysis ties the conditionmonitoring data gathering to proactive human intervention. This is the

key link in the PdM process, as data becomes information.




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Data Analysis


The inputs to PdM Data Analysis include time-based inspections utilizingnon-intrusive technologies as defined by:

q The conditioned based technology guidelinesq OEM recommendations

q ESMP/RCM criticality and task selection

The outputs of PdM Data Analysis include:

q Trending of performance data into PdM and/or distributed controlsystem data bases

q Recommendations for changing the frequency of monitoring basedon nearing the alarm of intervention condition level

q Recommendations for intervention prior to failure noting the pending failure mechanism and the expected failure date

PdM efforts require investment in technology and operator/technician timeto develop the skill set for data gathering and analysis. This investment

requires follow through in the form of competent analysis of the data in






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Operator Performed

Maintenance


Operator Performed

Maintenance

I. Introduction

Operator Performed Maintenance is considered by many people to be thesimple transfer of maintenance tasks to production operators/technicians.

This is a gross over simplification of the process. Operator performedmaintenance (OPM) is about production operators/technicians assuming

increased responsibility for the preservation and maintenance of their equipment.

Operator Performed Maintenance is also known as:

q Autonomous Maintenance from Total Production Maintenance(TPM) strategy

q Basic Care

Overview

OPM has a drastic impact on the traditional approach to equipmentmanagement. Tasks are designed, not only to maintain equipment, but also

to establish a more conducive atmosphere for improving equipment performance. The intent is to increase awareness of the production

operators/technicians of their equipment and physical environment.Barriers that limit their ability to observe and affect equipment

performance are systematically removed.

OPM and Basic Care are based on the following five principles:

q Basic care and equipment performance monitoring are coreactivities to the operators and maintenance craftpersons.

q Basic care activities, fundamental to equipment reliability,availability and safety, are driven by Operator and Craft Teams.

Recognized as having impact on Refinery performance, these arefully supported at all levels

q Operator and Maintenance basic care activities are coordinated as part of the same equipment maintenance strategy.

q Availability Teams are accountable and recognized for equipment

performance related to basic care activities.q Basic care is subject to a continuous improvement process

involving monitoring, assessment, rectification/improvement, andreview, aligned with Area objectives.




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Operator Performed

Maintenance


Definition

The production department’s mission is to produce quality products asinexpensively and quickly as possible. OPM includes any activity

performed by the production department that has a maintenance function

and is intended to keep the operation operating efficiently and stably inorder to meet production goals.

II. Objectives

The objectives of Operator Performed Maintenance are:

q Prevent equipment deterioration through correct operation anddaily checks

q Bring equipment to its ideal state through restoration and proper

managementq Establish the basic conditions needed to keep equipment well

maintainedq Perform results of ESMP/RCM analysis, e.g.

o (CM-AP) Assessment Tasks - (Operations) operatingconditions, pH, contaminants, lab samples, specifications,

performance tests, etc.o (CM-PDM) Predictive Maintenance - (Maintenance or

Operations) shims inspection, palomar, infrared, oil

analysis, engine analysis, etc.o (CM-T) Functional Task - (Operations) instrument test,

valve stroking, etc.o (OPP) Opportunities - (Engineering, Operations,

Maintenance) RCFA, detailed RCM, projects, de- bottlenecks, drawing or procedure updates, redesigns,metallurgical upgrades, etc.

o PM-NI) Non-Intrusive PMs (Maintenance or Operations)Equipment may or may not be in service, but it is not

opened; oil replacement, coupling torqueing, etc.





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Operator Performed

Maintenance


IV. Implementation

In implementing OPM, the production department must focus on threetypes of activities:

Preventing deterioration

q Correct operation to prevent the inclusion of human error q Correct adjustment to prevent process defects

q Basic housekeeping such as cleaning, lubricating, and tighteningq Maintain quality of lubricating oil facilities and lube stations

q Keeping maintenance records to provide feedback for recurringabnormalities and further maintenance prevention designs

q Performing simple function tests to release maintenancetechnicians for more time consuming or critical maintenance

Measuring deterioration

q Daily inspection using all five senses to detect flaws duringoperation (noise in a pump, the smell of burning insulation, etc.)

q Periodic inspection as part of plant shutdown or shutdown

maintenanceq Condition Monitoring, PRIDE, simple vibration checks using a

pen type tool, oil sample collections, etc.

Predicting deterioration

q Minor servicing such as simple parts replacement

q Prompt accurate reporting of failures and problemsq Assistance with repairing unexpected failures

DailyChecking

DailyCleaning

PeriodicInspection

Prompt DefectDetection

PeriodicReplacement &

Lubrication

MaintenanceRequest

Take Action

Operator Performed

Maintenance

PeriodicFunction Checks

ConditionMonitoring

DailyChecking

DailyCleaning

PeriodicInspection

Prompt DefectDetection

PeriodicReplacement &

Lubrication

MaintenanceRequest

Take Action

Operator Performed

Maintenance

PeriodicFunction Checks

ConditionMonitoring




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Operator Performed

Maintenance


There are seven steps to implementing an operator performed maintenance

system:

Perform Initial Cleaning

q Prevent accelerated deterioration by eliminating the

environmental stress of dust and dirtq Raise the quality of checking and repair work and reduce

checking and repair times by eliminating dust and dirtq Establish basic equipment conditions

q Expose and deal with hidden defects

Deal with contamination sources

q Increase intrinsic equipment reliability by preventing adhesion

of dust and dirt and controlling them at their sources

q Increase maintainability by improving cleaning, checking andlubricating

Establish Cleaning and Checking Standards

q Sustain the three basic conditions for maintaining equipment

and preventing deterioration (cleaning, lubricating, tightening)q Perform accurate checking by means of visual controls

Conduct General Inspections

q Improve reliability by performing general inspection andreversing deterioration

q Enable anyone to inspect reliably by introducing visual

controls

Conduct General Process Inspections

q Improve the overall stability and safety of processes throughcorrect operation

q Sharpen process inspection precision by extending and

improving visual controlsq Modify equipment to make it easier to operate

Systematic OPM

q Pinpoint relationships between equipment and quality andestablish a quality maintenance system




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Operator Performed

Maintenance


q Standardize maintenance and control of transport equipment,spare parts, tools, cleaning equipment etc and introduce visual

controls for everything

Practice Self-Management

q Analyze data e.g. PRIDE, to improve equipment and raise process reliability, safety, maintainability, quality, andoperability

q Prioritize equipment improvement by criticalities and existingfailure rate data

q Extend equipment inspection/checking intervals by using harddata to justify reduced operator/technician attention

As with every CMS Process, team leaders must promote and support the

basic care practices and participate in area reviews of basic care standards.Operator Performed Maintenance does not include activities for only the

operators. The entire area team is involved.q Operators/technicians must agree with the basic care

philosophy and perform the related housekeeping and

lubrication-related tasks.q Reliability Technicians must provide coaching as needed and

maintain a history of OPM activities and findings.q The maintenance engineer must review available data and

identify areas for improvement.

q Training must be provided to operators/technicians and other area personnel for a consistent, comprehensive program.

q Ensure thorough checklists are created for each type of equipment to be monitored in the basic care program.

Typically, unique checklists will be created for:q Pumps (lubrication, sealing systems, vibration, etc.)

q Motorsq Electric Motor Starters (MCC, Switchgear)q Instrumentation and local gauges

q Analyzersq Control Valves

q Computer Systems (DCS, PCs, handheld computers)q Piping and Tubing (leaks, insulation, corrosion)

q Heatersq Vessels (tanks, drums, exchangers, etc.)

q

The team leaders must support basic care and enforce thecompletion of the necessary tasks.






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Planning and

Scheduling


Planning and Schedul ing

I. Introduction

The goal of this process is to achieve best-in-class performance in

maintenance planning, scheduling and execution of work. One of themost important facets of maintenance management that offers significant

opportunity for savings and profit is maintenance control, which dependson good planning and scheduling. A primary requirement for effective

production operations is a disciplined process for identifying, screening,

planning, scheduling, executing, and completing required maintenance,repair, and improvement. A properly operating planning and scheduling

process can yield improvements of up to 50%.

Overview

Planning and Scheduling increases the maintenance department’s ability to

complete work orders. Work plans avoid anticipated delays, improve on past jobs, and allow scheduling. Advance scheduling allows supervisors

to assign and control the proper amount of work. Advance planning andscheduling allows for detailed coordination with on-going productionactivities and improved spare parts management. A work crew is ready to

go immediately to work in a coordinated manner upon receiving a plannedand scheduled assignment because all instructions, parts, tools, permitting,

and other arrangements are ready. A properly operating planning andscheduling process is characterized by trained personnel, a succinct

mapped process, and strong organizational support.

Definition

The Planning, Scheduling, and Execution Process covers all work,

including routine and shutdown activities. The level of detail in planningis appropriate to the magnitude and complexity of the task. For this

reason, more detailed procedures are provided for shutdowns andturnarounds.

All planning and scheduling is based on approved Work Orders from thework selection and prioritization process “Ranking Index for Maintenance

Expenditure” (RIME), which assigns job priority based on two work dimensions: Equipment Class and Work Class. All work is planned and

scheduled prior to execution. The use of standard job plans promotesefficient planning and execution. Resources for maintenance are

scheduled and allocated to optimize utilization and minimize overtime.




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Equipment maintenance strategies form the basis for Long-Term

Maintenance Scheduling, which allows timely planning for major shutdown/turnaround work. Long Term maintenance schedules are

prepared up to five (5) years ahead. These schedules are updatedannually, and allow the preparation of more detailed annual and rolling 3-

month schedules. The hierarchy of work scheduling and updatingrequirements appears below:

ScheduleSchedule Update FrequencyUpdate Frequency

• Long-Term Maintenance Annually

• Annual Work Program Quarterly

• Rolling 3-month Monthly

• Weekly

• Daily

The functions of planning and scheduling are separate and distinct, but are

frequently performed by the same person depending on size andcomplexity of the facility. See CMS Process on Roles, Accountabilities,

and Deliverables for details about the individual expectations for eachfunction.

II. Objectives

Execute maintenance activities efficiently and effectively by:

q Preparing an optimum work execution plan to meet safety, cost,quality, and schedule targets

q Ensure materials, personnel, tools, permits, and process equipmentare available for execution when required by the plan

q

Execute maintenance work to achieve or exceed the safety, cost,schedule, and quality objectives




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Planning and Scheduling Process Model(Note that each sub-process has a reference number)

IV. Implementation

Organizational Capability

1.0ObjectiveSetting

3.0Strategy

&Programs

4.0Work

Selection

5.1 Annual

WorkProgram

Is

it a

Shutdown

Job

?

5.2Job Planning

5.3Weekly

Scheduling

5.4Daily

Scheduling

No

5.5Prework

Activities

5.6PerformWork

5.7Job

Completionand

Handover

5.8Shutdown Planning,

Scheduling, and Execution

5.9Maintenance

Reporting

2.0Stewardship

Yes




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The Common Maintenance Strategy is committed to doing maintenanceand reliability better, creating value, and being safe in all that we do.

Organizational capability enables the realization of strategic goals. Toensure the maximum benefit of Planning and Scheduling it must be

supported as a core competency and adequately resourced. Withmanagement and leadership in mind, maintenance success needs

management commitment and organizational discipline. Managementmust sincerely and actively desire planned and scheduled maintenance to

succeed.

Unplanned maintenance work typically costs two to three times as much

as planned work. A Computerized Maintenance Management System(CMMS) provides the systems and procedures to establish a more

effective planning and scheduling function, which is a key contributor toimproved craft labor utilization and overall craft effectiveness. The

following attributes further enable efficiencies within the planning andscheduling discipline:

q Work Order Searchq Craft Schedulingq Schedule Review

q Individual Assignment Reviewq Shift Turnover Log

q Job Plansq Job Plan Requisitions

q Job Plan Documentsq Work Order Schedulingq Job Plan Steps

q Work Order Stepsq Craft Resource Availability

q Craft Resource Levelingq Material Status

q Craft Skills and Qualificationsq Daily Maintenance Schedule

q Craft Capacity Levelingq Schedule Compliance

Work Prioritization

The Ranking Index for Maintenance Expenditures (RIME) is used to prioritize maintenance work. It is a two-dimensional matrix comparing

Equipment Class and Work Class. Values are assigned to higher criticality equipment and work. Definitions are available for each rankingvalue – 1 through 10. The values are multiplied together and the product

is used to prioritize the work – higher numbers are done first.




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Priorities A, B, and C correspond to a timeframe within which work muststart.

q Priority A – start immediatelyq Priority B – start within 48 hoursq Priority C – start within 1 week

Training

bp Exploration and Production Technology provides a well-designed andconsistent training program for planning and scheduling. The benefit of

this training creates a seamless process from a federal perspective.Sharing of best practices within a common process, material stockholding

networks, and maintenance resource coordination are a few economies of scale derived from training on the same core process. It is imperative that

personnel executing planning and scheduling be trained in the process toachieve the maximum benefit provided. Training content covers these

major categories in both lecture and practice sessions over three dayduration:

q Introduction/Overview of Maintenance Planning and

Schedulingq bp Common Maintenance Strategy

q Planner and Scheduler Roles and Responsibilitiesq Meeting Facilitation

q Planning, Scheduling, and Executionq Annual Work Programq bp Planning and Scheduling Modelq Improvement Strategies




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Tools

Two primary tools are used for planning work throughout the company.

q Microsoft Project – for high-level planningq

Primavera – for detailed planning (e.g. TARs)

Separate classes are available for training on each specific software program. The planning and scheduling training discussed above primarily

covers processes used to effectively plan and schedule work.

V. CMS Elements Improved by Planning and

Scheduling

Planning and Scheduling can improve all CMS Elements :

q Leadership and Organization – Effective planning and schedulingallows for increased uptime and reduced life cycle cost.

q Facility Availability – Planning and scheduling ensures proactivemaintenance tasks are completed and improves the efficiency of

maintenance work, which increases equipment availability andreliability.

q Work Management – A rigorous planning and scheduling effort isnecessary for increased manpower utilization and schedulecompliance.

q Materials Management – Effective planning and scheduling effortsallow for reduced inventory.

q Change Management – Planning and scheduling is a significantstep in developing a proactive culture.

q Continuous Improvement – Planning and scheduling is acornerstone for improved maintenance efficiency andeffectiveness.




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Spare Parts

Management


Spare Parts Management

I. Introduction

The management of spare part inventory is often conflicted by corporate

goals to a) keep working capital at a minimum and b) have the right part atthe right time for any maintenance job. Poor equipment reliability

aggravates the problem by depleting inventories and consumingwarehouse resources with expediting material orders and delivery. Poor

planning and scheduling practices also harm the effort by not giving the

warehouse personnel proper information in sufficient time to obtain the parts at the most cost effective methods. Given that both reliability and

planning and scheduling can be improved, it will still be incumbent uponthe team leaders of the warehouse function to be able to deliver parts when

needed.

Many new strategies have been developed to partner with suppliers onvendor stocking, regional warehousing, consignment stocking, zonewarehouses, and many others that have replaced the traditional site

warehouse that stocked most all of the production facilities needs.Maintenance and Warehousing management need to integrate processes

and strategies to ensure both needs are met for the least cost.

Overview

The goal of Spare Parts Management is to provide the right component at

the right time, in the right place, and at the lowest total cost. Spare partsmanagement should make its contribution around the common

maintenance strategy processes rather than inside it and yet be an integral part of the overall deliverable.

Life cycle spares analysis is the evaluation of various costs over the lifecycle of the facility from the perspective of spare parts including:

q Initial cost of spare partsq Risk of equipment downtime costs and impact on safe

operationq Cost of holding the spares (i.e. warehouse costs)

q Cost of repair and/or spare part replacementq Location of the site and the logistic constraints




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II. Objectives

q Linkage with maintenance management to meet overallPlanning and Scheduling objectives

q Partnering with OEM suppliers to provide parts availability at

lowest costq Tie into design and selection process for equipment provided

by capital projectsq Site wide standardization with move towards corporate

standardizationq Inventory should be available to planners – the first call on

material requirements is added to the ‘inventory list’q All OEM spare parts should be clearly labeled, located, and

controlled in a stores system (including centralized inventory,satellite storage, zone stores and phantom inventory so that

storehouse personnel know what is available and where it is)q Utilize equipment criticality ratings and reliability resources to

analyze spare parts requiredq Different strategies for handling OEM and Operating Spares

III. Process Model




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ESMP/RCM and Spare Parts Management

There is a significant opportunity to associate these two core business processes. ESMP/RCM specifies condition monitoring techniques to

justify maintenance, which requires parts and tools. Condition monitoring

of equipment and the method applied specifies a certain P-F interval,which equates to a monitoring frequency. MTBF and criticality maychange the type of condition monitoring selected, which will change thefrequency of monitoring. The frequency of monitoring and the indication

it provides of an impending part failure can provide the necessary lead-time for just-in-time spare parts management strategies.

Current spare parts management is usually characterized by the fact they

hold a wide range of parts, from cheap consumables used in thousands per year to critical insurance spares costing up to hundreds of thousands of

dollars, but which may never be used over the entire lifetime of the plant.Up to 50% of inventory value may consist of spare parts which are used at

the rate of one per year or less; parts to the value of 10% to 30% of theinventory can sit on a store’s shelves for an entire 25-year plant lifetime.Perhaps these parts should never have been purchased, but if they were not

available when they were needed, the business could suffer severedowntime consequences.

The way forward requires not a new purchasing system or new procedures, but an auditable method to ensure that inventory fully

supports operations and maintenance. The new method is a portion of ESMP/RCM, which addresses spare parts and inventory services. It is

applicable to any engineering inventory, whether fast-movingconsumables or slow-moving insurance spares. In practice the greatest

return is usually achieved by a detailed analysis of slow-moving stock.

IV. Implementation

1) Ensure that the maintenance requirements of the equipment are

clearly understood.2) Determine the spares requirements of the plant in the context of its

operations and maintenance.3) Ensure that the resources, procedures and systems are in place to

deliver the requirements determined in step 2.

The reliability-centered spare parts method consists of a series of questions covering failure modes, failure effects, stock outage, and thecorrect stocking policy for each part (location and quantity).

q In what ways can the equipment fail?






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means for more effective management and control of maintenance partsand material inventories. Information for decisions on inventory reduction

is readily available to identify parts usage, excess inventory levels, partsthat exceeded their shelf life, and obsolete parts. An accurate bill of

materials (BOM) is critical for each piece of equipment in the CMMSequipment hierarchy database.

ESMP/RCM-based equipment maintenance strategies form the basis for

determining appropriate spare parts management decisions. Techniquesand technologies to be applied begin with the following:

q Just-in-time manufacture and delivery

q Service level of equipmentq Economic order quantity

q ABC analysis (ranking of each part according to facility-defined measure of importance, such as, number of picks per

year or part demand times unit cost)q Operations research

Life cycle spares analysis evaluates data for spare parts including:q Equipment configuration (redundant, passive, active)

q Mean Time Between Failures (MTBF) for spared equipmentq Useful life (i.e. shelf life) and estimated equipment life

q Procurement and/or repair lead times and cost of spare partq Cost of downtime if spare part is not available

q Disposal value and Discount rateq Holding costs of spare, including inspection and maintenance

Under some circumstances, it is justifiable to hold the spare at a remotesite, even when the spare part is a long lead-time item or capital spare.

The justification can be assessed using the following three criticalityratings, which correspond to three levels of operation:

q Criticality 1 – Equipment that must operation in order tomaintain operational capability in terms of safety, the

environment, and production.q Criticality 2 – Equipment that have installed redundancy, of

which either the system or its installed spare must operate in

order to maintain operational capability in terms of safety, theenvironment, and production.

q Criticality 3 – All other equipment and plant systems (i.e. non-critical equipment).

The chart below illustrates when spare parts should be held based on

customer service, operating efficiency, inventory investment, andequipment criticality.




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Spare parts management requires an efficient, easy to use, intuitive

information database to achieve the goals of the CMS. The below criteriaserve an important role and should be characteristic within a CMMS and

materials and spare parts management system:q Materials Master Catalogq Inventory Management

q Stock Item Inquiryq Stock Item Availability

q Stock Item Availability for Scheduleq Material Request

q Reordersq Automatic Reordersq Reorder Informationq Qualified Vendor q Update/Part Vendor Reference Data

q Cycle Count Scheduleq Inventory Count Verification

q Issue Material via Pick-listsq Automatic Pick-lists

q Direct Issuesq Pick Schedulingq Rebuilt Items (Inventory cost thereof)

q Adjust Deficient Quantityq Spare History

q Receive Materials against POq Receive Materials from Regional Inventory

q Stock Usage Analysisq Stock out Analysis




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Management


q Materials Usage and Forecastq Materials Quarantine, Inspection and Testing

q Materials Inspection/Testing Proceduresq Materials Management Procedures

Deliverablesq Effective warehousing strategy in alignment with equipment

maintenance strategies

q Optimized stocking levelsq Pre-packed parts kits that are readily available for use to take

advantage of equipment downtimeq Creative arrangements with suppliers to maximize value

q Timely delivery systemsq IT integration with facilities CMMS

V. CMS Elements Improved by Spare PartsManagement

The CMS Elements that can be improved by Spare Parts Management are:

q Leadership and Organization – Optimized spare parts inventory

decreases total operating costs.q Facility Availability – Having the right parts available at the right

time increases equipment availability.

q Work Management – Having spare parts available when neededimproves work order schedule compliance.

q Materials Management – Effective spare parts management is thekey to reducing storehouse inventory while reducing part stock-

outs.q Change Management – Instituting an effective spare parts

management process ensures continued facility operation withreduced lost production as a result of part unavailability.

q Continuous Improvement – As parts are readily available,

equipment availability continues to improve.




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Supply Chain

Management

Supply Chain Management

I. Introduction

Supply Chain Management (SCM) is a competence that is important to

any business. An estimated 75-80% of bp’s costs are with 3rd

party

suppliers and contractors…. SCM is very cri tical to bp’ s success . It isestimated that the 2003 Gross 3

rd party spend controlled by Exploration

and Production will be approximately $ 14.7 Billion USD. Of this total, it

is estimated that Opex spend will be $ 3.3 Billion, with remaining Capexspend to be $ 11.4 Billion. The chart on the left provides a breakdown of

major spend categories; Production Operations is to be an estimated $ 2.1Billion.

bp’s overall SCM competence affects overall costs, capital efficiency,working capital, lifting costs, and ‘Bottomline’ performance. All

personnel in bp that are involved in some way with the spending of bp’sfunds with 3rd Parties are involved in SCM, and must have SCM

competency. The SCM Functional Organization within bp works with allof Exploration and Production to maximize the valued delivered to bp

from the marketplace.

Four major components of SCM are shown below. Each is extremelycritical to maximizing the value delivered to bp from suppliers andcontractors.

0.2

6.6

3.8

2.1

0.8

1.2

Seismic

Facilities Engr &Construction

Drilling /

Completions

Production

Operations

Logistics

Other & Bus.Office Support




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Supply Chain

Management

Demand

Management

Market Knowledge SCM Strategy Contractor

Performance

Management

• Quantity,

Quality, Specs,

& Other Requirements

• New

TechnologyDevelopment

• Standardization

• Work Scope

• SynergiesAcross bp

(Local/BU/Stream)

• Substitutionsand Trade Offs

• Control

Required

• Variations

(Highs vs.Lows)

• Estimated Spend

• Supplier/

Contractor Costs

and Margins• Overall Supply

vs. Demand in

Market

• Supplier

DevelopmentOpportunities

• Tier 2 Suppliersand Costs

• ValueAppropriation

• Power Balance

• Sector Analysis

• Optimal

Approach toMarket

• Tender vs.

Negotiate

• Single Source

vs. MultipleSources

• Leverage AcrossBU/Region/

Stream

• Complete &

ObjectiveSelectionCriterion (HSE,

Quality, Value,Etc.)

• Contracting,Commercial

Terms,Incentives

• Exit Strategy

• bp’s

Procurement

Policies

• KPIs &

Measuring

Value(Commercial,HSE, Etc.)

• Alignment of bp’s business

goals to those of the contractor

• Cost

Transparency

• Sector Teams

• Process andQPRs

• DisputeResolution

• PerformanceBased

Relationship

• RVP

II. Exploration and Production SCM Strategy

Delivering best value through a procurement process requires a completeunderstanding and management of the supply chains in which we operate.

The Exploration and Production’s strategy, which reflects this proactiveapproach to our markets, is captured by the acronym STARS. These

strategic principles have been endorsed by Exploration and Production’sExecutive Management and are to be practiced in all locations. A brief

explanation of STARS is shown in the adjacent graphic. To learn moreabout STARS, contact the SCM professionals in your BU.






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organization can assist you in working through these. Critical elements toconsider are included in the questions below.

q bp’s demand or requirements• What are the specifics of the bp’s demand and how critical is it to

our business?•

Is there similar demand in other bp locations, can this be leveragedin the market?• How can the demand be managed to reduce potential costs to bp

and supplier/contractor?• Do we need any technology associated with this material or

service?q Market conditions

• What is the market conditions today for the suppliers/contractors

that provide the needed material or service? Is the market

expected to go up or down in the future?• How many providers of this material or service are there? Can bp

help to develop other competition in the market place to improve

contestation? What is the financial health of this supply market?• What does the value chain look like in this market, where is value

being appropriated today along this value chain?

• Can other materials or services be aggregated with the new

demand to add value for bp?

• What would a ‘power map’ indicate about the market today,

future?q Does bp already have a contract in place to provide this material or

service? If so, what locations does it cover, when does it expire, etc.?Does bp have a Global contract to cover this material or service?

q What are the HSE requirements for using a supplier/contractor in my

location? What are the requirements for adding a supplier/contractor?What is the HSE historical performance for a supplier/contractor?q What is the best process for measuring and managing the performance

of a supplier or contractor? How does Contractor Performance

Management (CPM) work? How does one tie bp’s needs for improvedoperations efficiency and lower costs to the supplier/contractors

performance metrics and compensation? Who should do this, what isthe ‘best practice’ today, what can be learned from other bp locations

or industry on managing contractor’s performance? What tools and processes are already in place today?

q Can the right supplier/contractor help with the reliability of myoperations?

q Will the supplier own bp’s critical spares until they are needed? Whatwill the costs be to bp? What will the costs be to the supplier? Does

bp have access to or already own ‘like’ critical spares for my location

in other locations; are there opportunities to reduce bp’s inventory andworking capital?








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Element Characteristics Benefit

CompetentOrganization

Individuals having the rightskills, knowledge and

behavior to deliver the

Business Goals.

• Assurance of delivery.

• Effective management of third party spend

Clear Roles andResponsibilities

Formal organizationalframework for CPM.

Individuals have a clear understanding of their roles

and responsibilities in theCPM process.

• Clarity internally/externally

• Clear Accountability for performance

Clear StrategicGoals/Targets

Clear and tangible sector strategy with clearly defined

success/fail criteria that alignwith the business needs.

• Alignment of contract goalswith business goals

• Clear, shared targets for bp

and contractor staff • Transparency for

management intervention

Right Contract Contract that clearlyarticulates performance

expectations and establishesthe ‘rules of the game’.

• Framework for intervention

• Definition of rights of the

parties

• Contract that supports rather than hinders effective

performance

Performance

ManagementProcess

Clearly defined CPM process

aligned with the ‘plan-do-learn’ approach to set targets,

periodic reporting of actual performance and sharing of best practices and superior

performance.

• Assurance of delivery

• Transparency for


• Consistent and rigorousmanagement of

performance

• Continuous improvementthrough ‘plan-do-learn’

process

Measures and

Targets

Clear and tangible contractor

performance deliverableswith clearly defined key

performance indicators thatalign with the contract needs.

• Clear, shared targets for bp

and contractor staff • Quantified delivery to

business

• Key basis for performance




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Management

Element Characteristics Benefit

conversation and


Compliance Compliance with regional

legislative, operational and business policies.

• Alignment with local

business environment

• Manage reputation risk

EffectivePlanning

Aligning supply and demand by better planning,engagement of contractor

and/or supply development.

• Focus resources

• Doing the right things first(prioritization)

RelationshipManagement

Understand the appropriatestyle of relationship to drive

performance at market, sector

and contractor levels.

• Use relationships toimprove performance

CPM Assessment Tool

This tool provides an organization with a framework to assess itsCPM capabilities against the ‘key elements’ of CPM and identify

opportunities to improve its CPM competence. The ‘traffic light’indicators serve as a means to score the organization being assessed

against the expectations. Green indicates complete or substantialcompliance with the expectation, red indicates gaps and areas

identified for improvement. Amber indicates that the expectation isaddressed but not formally and/or rigorously.

1. Value of CPM Recognised and Understood

The organisation has a formal SCM strategy, based on ‘STARS’ thatexplicitly addresses CPM?

Key individuals across the organisation understand how CPM contributes to better business performance and what is needed to assure delivery?

2. Competent Organization

Formal training is available and undertaken by all those identified withresponsibilities in the CPM process

An ongoing assessment of SCM training needs via formal appraisal processexists.

Organisational SCM competence is measured against the competenciesframework and addressed in the training and development plans.

3. Clear Roles and Responsibilities




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The organisation has a formal CPM structure and statement of responsibilities for each role

The responsibilities for these roles are clearly communicated (internally andexternally) to individuals involved in the CPM process and objectives arewritten into personal performance contracts

There are written criteria for selecting CAM’s

There is a process for identifying which contracts should be managed usingthe CPM process

4. Clear Strategic Goals/Targets

There are strategic performance goals based on industry-leading performance

These goals are subject to peer challenge

The goals have both short and medium term performance expectations

The goals address the longer-term transformation of bp position within the

respective market Sector

The contract objectives are defined and prioritized for both bp andcontractor, with potential conflicts identified and resolved

5. Right Contract

Contracts specifically refer to CPM as a contract requirement

Contracts clearly state bp’s performance expectations and establish ‘rules of the game’

Contracts support and drive achievement of performance objectives

6. Performance Management Process

There is a clearly defined CPM process aligned with the ‘plan-do-learn’approach

Performance reports, best practices and superior performance are sharedacross the organisation locally, regionally and globally

The management process is defined for each key contract (e.g. freq. of review, format, content, etc.)

Percentage of spend covered by formal CPM process

Green: > 60% Yellow: 20-60% Red: < 20%

There is reference to the goals, objectives and targets at performancemanagement reviews

7. Measures and Targets

There are stretch targets set based on bp or industry best-in-class benchmarks

Targets are clearly set, in context of benchmarks, are agreed and reviewed




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on a regular basis. Performance Gaps are identified and addressed.

The targets set are subject to peer challenge

There is open and regular communication of goals, objectives and targets tothose who need to know

8. ComplianceThere is a written understanding of the local legislative requirements whichis communicated to all those involved in the CPM process

The requirements of host country NOCs and NGOs is written andcommunicated to all those involved in the CPM process

9. Effective Planning

Cost maps are produced annually for all sectors and are updated regularly

Demand forecasting is shared with the contractors

Assessment of demand and supply is carried out with contractors and programmes adjusted as necessary

bp and the contractors work together to ensure that work is planned andactivities co-ordinated across BU’s and regions

10. Relationship Management

There are senior level bp ‘Tags’ identified for all major contractors

Relationship management is supported by the CPM process and fed into theglobal relationship management process

In addition to assessing the facility’s use of the CPM process, the performance of the contractor must also be monitored. A typical

scorecard for contractor performance is shown below:




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IV. CMS Elements Improved by Supply ChainManagement

SCM supports five of the six CMS elements as shown below.

q Leadership and Organization - SCM can assist in setting clear

goals and objectives for suppliers/contractors and building a

relationship based on performance that directly ties to and supports bp’s business goals (i.e. operations efficiency, lower operations

and maintenance costs, improved reliability, etc.)q Facility Availability – Utilizing the right contractors with the right

expertise and technology is critical to ESMP/RCM and RCFA,which will lead to improved operations efficiency and lower

maintenance costs.q Work Management – CMMS, which is critical to planning and

scheduling work, can also aid in improving process efficiency in procurement processes when optimally utilized.

q Materials Management – SCM is critical to materials management

processes, building relationships with suppliers/contractors to

‘own’ bp’s inventory until consumed, and setting up ‘virtual’inventory to minimize inventory redundancies across locations.Further, SCM assists in ensuring that purchased equipment and

materials are delivered on time and meet the correct technicalspecifications when ordered and received.






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Quality Assurance andPrecision Maintenance

Program

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and Operating


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• Engaged and

Competent Workforce


Quali ty Assurance and

Precision Maintenance

Program

I. Introduction

The goal of the Quality Assurance and Precision Maintenance Program isto ensure that maintenance activities are carried out to the required

standard and specification. Higher quality maintenance work equates toimproved equipment reliability, which in turn directly affects maintenance

spending.

Overview

The Quality Assurance Program includes:

q New materials, equipment, and spare partsq Repair qualityq Contractor performance

q Inspection and testing

Definition

The Quality Assurance Program includes all the steps, processes, and

procedures that are used to ensure that the products and services of the

maintenance department are of sufficient quality to satisfy the operationsdepartment requirements.

II. Objectives

One of the overall goals of the Common Maintenance Strategy is toimprove maintenance efficiency by reducing work order rework. In order

to eliminate rework, maintenance work must be completed correctly thefirst time. This is the essence of the Quality Assurance Program.

New projects are extensively evaluated and designed due to the front-endloading in the Capital Value Process; however, even superb designs can beruined by poor quality assurance. Quality assurance needs to be usedthroughout the entire project process, including:

q Designq Procurement




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q Fabricationq Construction

q Project Documentationq Project Transfer

Routine corrective and condition-based maintenance must be completed

with quality as the basis. Without a quality repair, it is very likely that thesame piece of equipment will return with the same problem. Quality

repairs ensure that the equipment is returned to service and performs per its original design. Some examples of a quality repair include:

q Mandatory balancing of all rotors

q Maximum vibration limits on overhauled equipmentq Leak check on overhauled reciprocating compressor valves

High quality repairs require:

q Repair and modification specificationsq Transfer, care, custody, and control procedures

q Robust planning and scheduling to ensure the proper parts areavailable

Storehouse control requires extensive quality control, from requisition, tostorage, to issue and return. Procedures are needed to ensure that all parts

are of the proper specification to ensure quality repairs are made.q Acceptance criteria and rejection procedure

q Management of Change process when Original EquipmentManufacturer (OEM) parts are unavailable (i.e. substitute part)

q Storing criteria (i.e. humidity, temperature, lubrication, original

packaging, orientation, etc.)q Bill of materials accuracy

q Quantity assurance and re-stocking setpointq Part return policy

Storehouse quality is significantly enhanced by effective preferred

provider relationships. These include approved suppliers and approvedcontractors. Enhancing these relationships to partnerships allowssignificant quality improvements in materials, personnel, and repairs.

Periodic shop visits for quality assurance and mandatory failure reports onrepaired equipment and components also improve the quality of vendor

work and supplied materials.

The primary purpose of mechanical inspection is quality control. Ensurethe following programs are part of the inspection department:

q Welding assurance (procedure, qualification, certification,acceptance)

q Non-Destructive Testing (NDT) techniques

q Positive Material Identification (PMI)




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All the different aspects of a quality control program share a common

objective: to ensure work is done correctly. Correct parts and correctrepairs help ensure equipment reliability.


Quality AssuranceQuality Assurance

Quality ControlQuality Control

Projects Maintenance Contractors Topical

Design

Stage

Maintenance

QA/QC

Contractor

QA/QC

Welding

QA/QC

ProcurementStage

Transfer, Care,Custody, and

Control

ApprovedManufacturers

PositiveMaterials

Identification

Fabrication

Stage

Repairs,

Alterations, andModifications

QA/QC Plan

and Hold List

Non-Destructive

Testing

ConstructionStage

RequisitionProcedures

Fabricationand Installation

ApprovedContractors

Projects

Documentation

Stores/

WarehouseProcedures

Approved

Vendors

Project Transfer Materials Issueand Return




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IV. Implementation

Analyze

A Quality Assurance Program is a necessity in order to stay on the

continuous improvement path. New construction and repairing oldconstruction must be done in a way to minimize future failures.Optimally, the root cause of the failure will be addressed during the repair

process, and the failure will never occur again for that piece of equipment.

Design

The Quality Assurance Program has multiple components, each of which

can be incorporated into existing processes and mindsets. The CapitalValue Process does an excellent job front-end loading a project or turnaround to ensure that the correct item is requested. Continuing to

require high quality in the construction execute phase will ensure that thecorrect item is built.

An extremely valuable source of information regarding specifications for

new construction is located in the bp Engineering Technical Practices(ETPs). The ETP Library is a web-based document management system

designed to store the newly developed ETP documents. Included withthese new practices are legacy specifications and practices (heritage bpRPSEs, Amoco ACES, and Arco ES documents). The web-based

application allows the user to search for, view, and download thesedocuments.

Another web-based system that has valuable information about qualityassurance is the Shared Learning System. Shared learnings can be reachedvia a link in the ETP Library. The user has the ability to search for

relevant topics and can enter new learnings and comments as necessary.

Integrating quality in the defect elimination process ensures that the

correct root cause of the problem is discovered and properly mitigated or eliminated.

Integrating quality in the storehouse ensures the proper parts are ordered,

received, and delivered to the field for use. It also ensures the parts arekept in good condition.

Develop

Develop a plan to incorporate quality into everyday activities in themaintenance department. High quality atmosphere leads to high quality




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repairs. People understand the value of quality training, materials, and processes. People want to do a good job. Make every effort to make this

possible and their appreciation will show in quality work.

Implement

Implement quality assurance into all processes in the facility. In additionto the other Common Maintenance Strategy processes, quality assurance

programs that can help improve maintenance performance are briefly

described below.

Laser Alignment

Shaft alignment programs help ensure the on-line vibration of thedriving and driven pieces of equipment will be minimized. Thermalgrowth and soft-foot problems should be addressed as part of the

alignment program. Reverse-dial indicator alignment is usually the

minimum acceptable alignment method for industry today. Laser alignment is the current state-of-the-art alignment technique.

Balancing

Rotor balancing has a significant impact on machinery vibration and

bearing loads. Computerized dynamic balancers can be used tosimplify and perfect the balancing of rotating assemblies. Precision

balancing of rotors results in improved equipment reliability andextended useful life.

Welding Program

A complete welding program should include:q Welding Procedure Specifications (WPS) – the recipe for

the welding operation, which specifies process, materials,geometry, and position.

q Welding Procedure Qualification Record (WPQR) –

certification for the welding procedure above.q Welder Performance Qualification (WPQ) – certification

for individual welders on a specific welding procedure.

Non-Destructive Testing

An all-encompassing term describing inspection techniques that do not

affect the integrity or future usefulness of the equipment. Techniquesthat should be included in a NDT arsenal include:

q Visual inspectionq Ultrasonic thickness




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q Liquid penetrantq Wet Fluorescent Magnetic Testing

q Magnetic particle testingq X-ray inspection

q Radiographic inspectionq Shear wave inspection

q Hydrostatic pressure testingq Hardness tester

q Eddy current inspection

Positive Material Identification

Different materials are specified to handle process conditions in order

to maintain mechanical integrity of the system. A Positive MaterialIdentification (PMI) program should be implemented to ensure the

proper materials are used. The PMI program includes checking rawmaterials, field piping and vessels, and weld metals. This program is

an important part of Process Safety Integrity Management (PSIM).

Evaluate

The primary output from a quality assurance program is to ensure thatmaintenance tasks are done correctly. Several analysis tools and processes

exist to help ensure high quality performance. High quality maintenance practices help ensure increasing equipment reliability, which ensures

continued facility improvement. Key performance indicators (KPIs) onmaintenance rework should be decreasing while equipment reliability is

increasing.

V. CMS Elements Improved by Quality

Assurance and Precision Maintenance Program

The CMS Elements that can be improved by the Quality Assurance andPrecision Maintenance Program are:

q Leadership and Organization – A quality-oriented workforce

directly affects customer satisfaction and bottom-line results.q Facility Availability – Quality repairs mean better equipment

reliability. Precision maintenance equates to long run times.q Work Management – High quality maintenance activities helps

eliminate rework.

q Materials Management – An effective quality assurance programensures the right parts are available for effective repairs.




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q Change Management – Developing a quality mindset is a giantstep towards optimized asset ownership.

q Continuous Improvement – Integrating quality into allmaintenance activities ensures continued improvements in

equipment reliability and availability.




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Risk Based

Inspection (RBI)

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Risk Based I nspection (RBI )

I. Introduction

The objective of the Risk Based Inspection (RBI) program is toincorporate equipment risk into the management of equipment inspection.

RBI is used to plan inspections so that the right equipment is inspected atthe right time, using the right inspection tool, and for the right reasons.“The ultimate goal of RBI is to develop a cost-effective inspection

program that provides assurance of acceptable mechanical integrity andequipment reliability.” (www.corrosion-doctors.org)

Overview

Operating facilities have increased demands for improved performance, better use of resources, and cost reduction. Inspection planning for

process equipment now requires more sophistication as facilities age,while simultaneously boosting uptime requirements.

Process Safety Integrity Management and regulatory agencies enforce the

periodic inspection of facility piping and equipment. The regulationsallow for sound engineering practices to be used to establish the inspectionand testing techniques used and the frequency of these inspections and

tests. The sound engineering practices include risk evaluation of theequipment to help set the inspection types and intervals.

Risk is defined as the likelihood and consequence of a failure. High

probabilities of catastrophic consequences obviously have the highest risk factor. High probabilities of negligible consequences and extremely low

probabilities of catastrophic consequences have a lower associated risk.Finally, a low likelihood of negligible consequence has the least risk. Agraphical matrix (likelihood x consequence) is the most common method

of distinguishing between high and low risk items. Decision tree modelsalso exist to quantify an item as high, medium, or low risk.

Low risk items allow for less frequent and less extensive inspections;

whereas, high risk items demand more frequent and more inclusive

inspections. Typically, RBI analysis results in reduced total inspectionrequirements because the inspection effort is directed at equipment withthe highest risk and the inspection techniques are focused on the factorsthat contribute to equipment risk. Mechanical integrity and equipment






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inspection techniques. Higher risk equipment must be inspected morethoroughly and more frequently due to the increased risk associated with

equipment failure.

II. ObjectivesThe primary objective of the RBI program is to develop an optimizedinspection program. An optimized program would have minimum cost

associated with the inspections, while still providing acceptable assuranceof the mechanical integrity of the equipment.

The RBI program should return excellent integrity management results.

Equipment deficiencies are identified and addressed during periodicinspection activities.

RBI does not replace the need for periodic Process Hazards Analysis

(PHA), Management of Change, or other processes included in the gHSEr and PSIM initiatives. RBI complements these activities by focusing onmechanical integrity related failures and mitigation through equipment

inspection.

Results from an RBI analysis can be used to supplement a reliabilityanalysis (ESMP/RCM) study. RBI results document likelihood and

consequence of equipment failure (i.e. risk) and inspection findings.These findings can be used to justify a change to the equipment criticalityor to details within its proactive maintenance program.

The advantages returned by RBI include:

q Focused inspection attention on the areas that need it the most,ensuring that potential problems are highlighted quicker and

remedial and preventive measures become more apparent.q Employees become more aware of the plant operation and are best

able to identify and assess the risks involved.

q Likely that fewer internal visual inspections will be necessary,which has a major impact on the operation and safety of the plant.

q A reduction of overall inspection costs.q A reduction of overall maintenance costs.

q A reduction of overall plant shutdown times.q A reduction of the number of shutdowns required.

q An auditable trail of the inspection decision making processes.

Potential additional investments required due to an RBI program:

q Significant personnel cost due to creation of a multi-disciplineteam during the Integrity Review.

q May result in an increase in inspection frequency.




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q Involves a more complex decision making process to determine theinspection methods and frequencies.

q Requires a constant update to the record keeping process (usually adatabase) and the CMMS.

q Requires an audit and review process to be built into the ongoingsite management process.

q Requires the team to re-assess the RBI decisions followingexamination of the results.


The process flow for the Risk Based Inspection Program is a four-stepcontinuous improvement cycle.

q Assessment of Risk for each piece of equipment by evaluating thelikelihood and consequence of equipment failures.




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q Inspection Program to select the most appropriate inspection tasksand frequencies with respect to cost and risk (non-intrusive

inspection techniques will be maximized).q Optimize the Inspection Program with respect to aligning

frequency, location, and inspection techniques.q Inspection Assessment and Decision Process reviews the results of

inspections, which improves the knowledge of an item’s conditionand provides information for planning the next inspection or

deciding on repair, replace, or modification actions.

Determine what equipment to inspect, what techniques to use, and at what

frequencies. Evaluate the level of risk reduction compared to the cost of the inspection activities to determine if the program has been optimized.

Make changes as necessary to further improve equipment reliability,reduce facility risk, and lower inspection program costs.

IV. Implementation

Use reliability analysis techniques (ESMP/RCM) to determine equipment

criticalities. Use risk analysis to evaluate the likelihood and consequenceof equipment failures. Typically, RBI focuses on fixed equipment (tanks,

vessels, and piping). PHA results may assist in the risk evaluation of theequipment. Personnel to include in the risk analysis (Integrity Review)

are:q safety and environmental representativeq materials and corrosion engineer

q process operations engineer q maintenance or reliability engineer

q integrity/inspection specialist or team leader q mechanical technical authority for the facility

Among the items to consider when evaluating equipment in the RBI program are:

q Current and future regulationsq Design specifications (materials of construction, design pressure

and temperature)q Operating parameters

q Process materials (i.e. the fluid being contained)q Anticipated and historical deterioration rates

q Effectiveness of previous inspection techniques to detectdeterioration mechanisms

q Vibration induced fatigue on piping systems

q Requirements in gHSEr and PSIM




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Decision trees can be used to help differentiate between high, medium,and low likelihood and consequences of equipment failures. The

consequence decision tree takes into account process conditions (processfluid, pressure, and temperature), the size of the vessel or piping, and

repair cost. The probability decision tree accounts for materials of construction, wall thickness, and operating temperature.

RBI has been used in industry for over ten years to safely justify

inspection techniques and intervals. Internal and external consultants can provide valuable guidance in the development of the program. Consultwith internal subject matter experts regarding the optimum approach for

each facility. Consider using existing personnel, bringing in expertswithin the company, or using external consultants to assist in program

development.

Use planning and scheduling capabilities within the CMMS or another database to track for each piece of equipment in the RBI program:

q Inspection techniques usedq Inspection frequency with next scheduled dateq Inspection findings

q Corrective actions taken to address deficiencies foundq Recommendations for modifications to the piece of equipment or

the inspection program to further improve mechanical integrity

Implement recommendations made to improve the RBI program.Periodically review the inspection intervals selected and determine if changes are needed to assure mechanical integrity of the equipment.

Modify intervals and techniques as necessary to address changes inequipment risk. Include these changes in the Management of Change

program. Modify intervals based on changes to deterioration ratesdetected by inspection.

Track the performance of the RBI program with KPIs around incidents

(i.e. loss of containment, high potential situations, etc.) on equipment inthe program.

More information can be found on websitehttp://technical_practices.bpweb.bp.com/rpse/Subind32.htm

V. CMS Elements Improved by Risk BasedInspection (RBI)

The CMS Elements that can be improved by the Risk Based InspectionProgram are:




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q Leadership and Organization – A comprehensive RBI program

ensures mechanical integrity, improves equipment availability, andreduces inspection costs without increasing the risk assumed by the

facility.q Facility Availability – The RBI program allows for decreased

inspection frequencies on certain equipment, which reducesequipment downtime and increases equipment availability.

q Work Management – RBI analysis generates an inspection program that takes advantage of good engineering design andimproved inspection techniques.

q Change Management – RBI is a current best practice in industryfor the development of optimized inspection programs.

q Continuous Improvement – RBI justifies optimum inspectionintervals and techniques, which improves equipment availability

and integrity management performance.




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Generic Equipment

Maintenance Strategies

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Generic Equipment


I. Introduction

Equipment used in exploration and production facilities is very similar throughout the world. Oftentimes, generic equipment maintenance

strategies are created to address the maintenance of this equipment. Thesestrategies reduce the amount of reliability analysis required on each piece

of equipment and establish a common maintenance practice to be used for every similar piece of equipment. The strategies are usually based on

supplier recommendations, industry best practices, and reliability analysis.

Overview

Generic equipment maintenance strategies are most effective for

equipment with the following characteristics:q Very similar in design regardless of manufacturer

q Have comparable failure modesq Not directly in contact with the process

q Has regulatory agency requirementsq Quality historical maintenance, reliability, and failure data exist

By far, the majority of these generic equipment maintenance strategies arefor electrical equipment, including:

q Electric motorsq Motor switchgear

q Power distribution equipmentq Electrical enclosures

Electrical systems are subject to deterioration from overheating, corrosion,dirt accumulation, water ingress, and physical mistreatment. Electrical

systems also perform well in seemingly adverse conditions, leading to afalse sense of security. If condition-based monitoring is not in place,

electrical system failures often occur with no warning. Lack of maintenance intervention can easily downgrade the integrity of electrical

systems to be non-compliant with the hazardous area classification

requirements.

Electrical systems do not share the same status as the rest of the processequipment:

q Knowledge of the unique requirements is not widespread.




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q Practices utilized tend to vary widely from asset to asset; electricalequipment is sometimes neglected and other times over

maintained.q Governmental regulations for mandated surveillance and testing

are becoming increasing stringent but also vary widely dependenton the location.

q Original equipment manufacturers recommend more than anoptimized amount of electrical maintenance.

q Maintenance of electrical systems is complicated because takingthese systems out of service can have a significant impact onoperations.

Other types of equipment that may benefit from generic equipment

maintenance strategies include:q Fin fan air coolers

q Relief valves (pressure safety valves)q HVAC (Heating, Ventilation, and Air Conditioning) systems

q Mechanical handling equipment (cranes, fixed and portable liftingequipment)

Sometimes, maintenance on certain types of equipment can vary widely between different facilities even though the equipment is very similar in

nature. The various different maintenance strategies used throughout thecompany represent a prime opportunity for the use of the CMS Process of

Knowledge Management. Review all practices and develop a best practice to be used throughout the company.

Definition

Generic equipment maintenance strategies are general proactivemaintenance practices that are applied to specific types of equipment

regardless of criticality or service. The equipment is highly suitable for this programmatic approach due to:

q Equipment physical location

q Known industry best practicesq Mandatory regulations

q Similar failure modes

II. Objectives

In order to establish effective generic maintenance plans for each facility,review the following considerations:

q List of equipment that would benefit from standard maintenance plans

q Existing maintenance plans




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q Site-specific reliability historyq Mandatory regulations

q Indicators to track equipment performance

BU/PU leadership must support generic equipment maintenance plans.

As with all proactive maintenance systems, the expected outcomes froman effective generic equipment maintenance strategy are:

q Shift to proactive maintenance mindsetq Early detection or removal of equipment failures, which reduces

reactive maintenance

q Integrity management and safety compliance improveq Equipment reliability improves

q Standardized maintenance plans improve technician efficiency andspare parts management

III. Process Model

IV. Implementation

Generic equipment maintenance strategies are directly related to the CMSProcess of Equipment Specific Maintenance Plan/Reliability Centered

Maintenance (ESMP/RCM). Reliability analysis forms the basis for thegeneric plans such that they perform valuable proactive maintenance tasks.




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Once leadership has agreed to support these generic plans, development

and implementation of the plans can commence. Many genericmaintenance plans already exist at each facility. A review of all of these

plans would help generate a common ‘best practice’ maintenance strategyfor each equipment type that could be used at all sites. Periodic review of

each generic practice is advisable to maintain these as living documents.

Following is a list and brief discussion of several types of genericequipment maintenance strategies that already exist.

Maintenance of Hazardous Area Electrical Equipment

History shows that electrical system failures are a significantcause of production losses and high equipment repair costs.

The aim of the Maintenance of Hazardous Area ElectricalEquipment is to allow the vast majority of electrical system

failures to be predicted and managed to minimize impact onoperational performance. Safety and environmentalstewardship will also improve as defects are eliminated.

This generic maintenance strategy focuses on several common

causes of electrical equipment and enclosure failure:q Corrosion

q Dirt accumulationq Water ingressq Physical damage

Visual inspection and reporting of abnormalities is extensively

used to monitor the condition of the electrical equipment andenclosures. Defect elimination teams are used as necessary to

determine and address the root causes for these failures. The primary intent of this strategy is to raise the awareness of the

operators/technicians regarding maintenance of electricalequipment and enclosures. These items are to be routinelyinspected during their normal duties.

High and Low Voltage Power Distribution Maintenance Strategy

A proactive maintenance plan is needed for oil-filled and dry

transformers. This equipment is critical to the operation of theelectrical equipment in the facility. Normally, transformers are

very reliable, but they can not be considered as “fail safe”.Correct operation of these transformers can also help preventfires in the event of overload. Since maintenance on electrical

power distribution transformers must usually be completed






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motor specifications to be used throughout the plant. Thesemotor specifications assist in spare parts management.

Motor maintenance can be cost-prohibitive on smaller motors,

so a motor repair size limit is established (usually based onhorsepower). Motors under the limit will not be repaired, but

replaced when they fail. Motors above the limit will berepaired upon failure.

Some condition monitoring techniques that are recommendedfor motors that can be incorporated into a generic maintenance

strategy are:q Vibration Analysis – used to monitor the condition of the

bearings and motor foundation. High vibrations indicate balance, alignment, or bearing problems.

q Infrared Thermography – used to detect high temperatureson motor bearings or the motor case.

q Lubrication Inspection – used to monitor the availability of clean lube oil to the motor bearings. Lube oil can besupplied by oil mist, grease, wet sump, or a circulating oil

system. Some motor bearings are sealed, which do notrequire additional lubrication.

q Motor Current Analysis – used to monitor the performanceof the motor and detect rotor and bearing breakdown.

q Winding Temperature Monitoring – used to monitor thecondition of the motor windings.

q Insulation Test – used to monitor the condition of the

insulation. Megger, dielectric absorption ratio, and polarization index tests are common.

Grounding (Earthing) Maintenance Strategy

Grounding systems are protective systems with two objectives:

q Send electric current to ground under normal and faultconditions without affecting the equipment or continuous

power supply

q Protect personnel from electric shock

Generic equipment maintenance strategies for groundingsystems include visual observation and resistance testing.

UPS and Battery Maintenance Strategy

Uninterruptible Power Supply (UPS) and battery backupsystems are used to ensure some electric equipment can be




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temporarily operated in the event of a power failure. Proactivemaintenance strategies for these systems involve:

q Battery Capacity Test – used to verify the capacity of the battery cells. Undersized systems will not provide the

protection needed.q Battery Charger System Test – used to verify proper

operation of the charging system. Improperly operatingsystems can lead to inadequately charged systems or cause

unnecessary overheating of batteries, which decreases their performance, can shorten their life, and can increasecorrosion.

Low Voltage Lighting Maintenance Strategy

Lighting circuits have frequent problems with water ingress

and ground faults. Lighting circuits will be tested periodicallyagainst a set standard. If the circuit falls below the standard or

indicates a ground fault, the circuit will be isolated and thecomponents individually inspected and tested to locate thedeterioration of the circuit. Insulation resistance tests are also

recommended to monitor the condition of the wiring insulation.

Some components in lighting circuits require time-basedreplacement (preventive maintenance). Electrical bulbs have a

random failure mode, so there is no condition monitoring task that can effectively predict a failure. Bulbs can be checked andreplaced when they fail. Critical bulbs can be proactively

replaced. Some lamps can be proactively replaced in order to protect the ballast, which can fail if it tries to light a failed

lamp. Periodic replacement is not recommended for all bulbsand is a simple way to reduce material costs.

Some lighting circuits have battery backups for emergency

lighting. These battery systems should be checked per the battery maintenance plan above.

Low Voltage Electric Heat Tracing Maintenance Strategy

Electric heat tracing is an effective method for precise processtemperature control. Process temperature indicators should be

used to monitor heat tracing and thermostat performance.Decreasing process temperatures indicate a problem with the

tracing system.

Electric tracing circuits will be tested periodically against a set

standard. If the electrical integrity of the circuit falls below the




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standard or indicates a ground fault, the circuit will be isolatedand the components individually inspected and tested to locate

the deterioration of the circuit. Insulation resistance tests arealso recommended to monitor the condition of the wiring

insulation.

Relief Valves (Pressure Safety Valves) Maintenance Strategy

Relief valves are protective devices that are usually covered byagency regulations. Some important facets of a maintenance

plan for relief valves include:

q Periodic testing – to ensure it will function when needed.q Proper handling – very important because improper storage

can affect the valve’s performance and set pressure.q Proper identification – to ensure the correct valve is

installed in the proper location, proper set pressure, and lasttest date is within regulations.

q Engineering documentation – to show sizing calculationsand the case (i.e. upset condition, such as external fire or

blocked in pump discharge) the valve was sized for. Be

sure relief valves and the relief system are reviewed for facility modifications.

Fin Fan Air Coolers Maintenance Strategy

Air coolers are used in multiple different applications, but havemany common failure modes, such as: external dirt

accumulation, header box leaks, and fan problems. Leaks andfan problems are handled by routine visual observation.

Depending on the environment, periodic external cleaning of the tubes may be an effective addition to a proactive

maintenance plan. Eddy current and hydrostatic pressuretesting can locate leaks during equipment downtimes.

HVAC (Heating, Ventilation, and Air Conditioning) Maintenance

Strategy

Properly operating HVAC systems is critical for personnel

comfort, analyzer operation, building cleanliness, and electricalcomponent protection. Periodic inspection of the system

performance and testing of system components should beincluded in the maintenance plan.




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Mechanical Handling Equipment Maintenance Strategy

Crane and other mechanical handling equipment availabilitydirectly impact facility availability. Delays due to unavailability of

mechanical handling equipment can extend downtimes andincrease costs. Maintenance and inspection of mechanical

handling equipment is defined in federal document MechanicalHandling Equipment Maintenance and Inspection Strategy. The

inspection and maintenance rationale was developed using risk andreliability based processes (FMEA and RCM) and complies withall applicable corporate and legislative guidelines. Typically, the

Mechanical Handling Contractor (MHC) is responsible for executing this inspection and maintenance program. The scope

and techniques used are regularly evaluated to ensure compliancewith legislation and to take advantage of and changes in

technology or industry best practices. See the Operations Integrityintranet site (http://aberdeen.bpweb.bp.com/ask ) for more details.

The Mechanical Handling Contractor‘s performance is periodicallyassessed against key performance indicators, which measure HSE

output in the form of OSHA recordables, platform craneavailability, planned maintenance program compliance, actual vs.

budget spend, and performance against an agreed-upon people plan. The MHC is the technical expert in this field and provides

technical guidance to the BU regarding mechanical handlingequipment.

Generic equipment maintenance strategies should focus on conditionmonitoring activities. In order to reduce the amount of reliability analysis

required, time-based maintenance tasks are often specified in these genericmaintenance plans. As with all proactive maintenance plans, effective

planning and scheduling is essential to ensure the plans are properlyimplemented.

Once the plans have been implemented, equipment reliability and performance needs to be tracked to ensure that the maintenance program

has been optimized. After a baseline of data has been collected, certaintasks can be conducted less frequently. Addressing the performance gaps

leads to a more complete maintenance plan.

V. CMS Elements Improved by GenericEquipment Maintenance Strategies




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These CMS Elements are improved with Generic Equipment MaintenanceStrategies:

q Leadership and Organization – Generic equipment maintenance

strategies are effective methods to develop a proactive mindset inthe workforce.

q Facility Availability – Proactive maintenance improves equipmentreliability and availability by providing early detection of

equipment failures.q Work Management – Identical maintenance plans for multiple

pieces of equipment improves planning and scheduling and

efficiency of the associated tasks.q Materials Management – Generic maintenance plans reduce the

number of spare parts required for a large number of equipment.q Change Management – Generic maintenance plans originate from

reliability studies and a proactive approach to maintenance.q Continuous Improvement – Optimizing generic maintenance plans

improves equipment reliability and task execution efficiency for multiple pieces of equipment.




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Campaign

Maintenance

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Campaign Maintenance

I. Introduction

The campaign maintenance process is used to maximize efficiency and

cost effectiveness for activities that lend themselves to planning and can be executed by a centralized team across the asset or multiple assets.

While these tasks and programs vary in skill and expertise, the opportunityis to maximize skill sets that are more effectively executed from a

centralized team across several assets. The Centralized CampaignMaintenance Team objective is to focus on work that can be planned and

scheduled to maximize the manpower utilization. Where possible, theCentralized Campaign Maintenance Team will have sufficient competency

to fully deliver the Centralized Campaign Maintenance activities withminimal support from the core facility organization.

The following define many of activities of Campaign Maintenance:q Planned maintenance work that can be packaged into manageable

blocksq Planned activities that need to be managed for cost

q Planned activities that do not justify a dedicated presence at facilityq Additional resource support for planned outages of major

equipmentq Analysis of maintenance data to improve reliabilityq Manage Maximo database

Examples of campaign maintenance include:

q External Corrosion Protectionq Condition Based Maintenance

q Fire and Gas Preventive Maintenanceq Rotating Equipment Inspections

q Vessel and Piping Inspectionsq Valve Lubrication Preventive Maintenanceq Preparations for Hot and Cold Weather Conditions

q Electrical Hot Spot Surveysq Lighting Surveys and Bulb Replacement

q Leak Detection Surveys

Tasks that fall into the campaign maintenance area can be planned inadvance. In many cases contractor personnel are utilized. The campaign

approach increases the probability that asset owners will prepare




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Campaign

Maintenance

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


equipment so that the tasks can be performed with high efficiency andeffectiveness.

Centralized Campaign Maintenance philosophy is based on having a core

team of bp and contract technicians on each facility who operate the assetand carry out all breakdown maintenance. This team’s objective is to

maximize production uptime through operational excellence and defectelimination.

II. Objectives

BUs/PUs seek opportunities to utilize campaign maintenance tactics to

lower the cost of ownership by insuring tasks are performed with aminimum of cost and operational disruption. Campaign maintenance

supports the CMS Process of Optimized Staffing by maximizing theutilization of skilled technicians on value-added activities.

When used in conjunction with Contract Management (part of SupplyChain Management), campaign maintenance can be an effective method to

temporarily “staff up” for fluctuating workloads throughout the year without affecting baseline company workforce.

BUs/PUs will utilize campaign maintenance to ensure that tasks and

programs that lend themselves to this approach are performed asefficiently and effectively as possible.

III. Process Model and Implementation






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Campaign

Maintenance

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


cooperation of asset owners, are critical elements of success. All the basesmust be covered to achieve the expected efficiency and effectiveness.

BU/PU leadership must set the stage:

q Raise awareness of the importance of campaign maintenance andhow it fits into the CMS and GO Team imperatives

q Demonstrate commitment to utilize the campaign maintenance process to improve operational performance

q Ensure that appropriate planning is in place for deploymentq Communicate the importance of efficiency and effectiveness in

accomplishing the tasks

q Demonstrate total buy-in to the campaign maintenance activitieswhile they are in progress

As the campaigns are deployed, many hidden defects are found and

addressed. Post campaign equipment performance will be improved.These results should be tracked and recorded in the CMMS equipment

history for use in optimizing future campaigns.

Operational performance also needs to be tracked with the expectation that

slowdown losses and unexpected failures are reduced.

Adjust campaign maintenance plans based on the feedback above.

Celebrate success and share learning with other BUs/PUs.

IV. CMS Elements Improved by Campaign

MaintenanceThese CMS Elements are improved by Campaign Maintenance:

q Leadership and Organization—Human behaviors and managementsystems improve as organizations achieve success with campaign

maintenance. Assets are in better shape and people take better careof good running equipment.

q Facility Availability—Availability and on-stream time increase ascampaign maintenance efforts allow equipment and processes to

run better with fewer slowdowns.q Work Management—Campaign maintenance directly impacts

operational performance and productivity. The focus on efficiencyand effectiveness decreases expenses.

q Materials Management – Campaign maintenance efforts focused

on the Storehouse can reduce inventory and improve accuracy of item counts.




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Campaign

Maintenance

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


q Change Management—Campaign maintenance activities focusvalue on doing it right and doing it quickly. They generate

financial rewards while ensuring health, safety, and environmentalstewardship. Changes that do not meet these requirements will

naturally be rejected.q Continuous Improvement—Campaign maintenance supports

continuous improvement by freeing up manpower for proactivetasks and lowering the cost of ownership by increasing

effectiveness.




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Redeploy and

Optimize Staffing

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


Redeploy and Optimize

Staffing

I. Introduction

Having the right people doing the right things at the right time will alwayscreate winning performance and a great organization. The aim of the

CMS Process and the GO Team requires this kind of execution at the assetlevel.

Optimizing organizational staffing will insure that the appropriate mix of proactive skills and resources are available to execute the CMS Process

and GO Strategy.

As bp journeys toward the objectives, people skills requirements will be ina state of flux. The GO Strategy and CMS Process will change how assets

are managed. The changes involve proactive activities requiringcompetencies that may not be currently available in the existing

workforce. The CMS Process changes will reduce and eliminate many of the reactive asset management activities now being performed. Planningfor staff optimization during the transition is a must.

Examples of proactive CMS Process activities include:

q Planning and Schedulingq Data Analysis

q Failure Analysisq Defect Elimination

q Predictive Maintenanceq Precision Assemblyq Upgraded Equipment History Tracking/Trending

q Campaign Maintenance

A work force with proactive skills promotes higher morale because it hasmore control of its destiny. Embedding proactive skills is an example of

“good cost” versus the “bad cost” of allowing equipment operation to faildue to insufficient use of proactive intervention.

All of the proactive processes and activities above create the opportunityto perform more planned and scheduled work on the equipment. Planning

and scheduling is the underlying core competency for leveraging the proactive activities into effective and efficient action on the assets. It is

essential that this core competency be staffed appropriately early.






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Redeploy and

Optimize Staffing

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


BUs/PUs will take the appropriate action to insure that performance willnot be adversely impacted due to a lack of proactive skills and

competencies.

BUs/PUs will use skilled contractors to handle swings in workload and tofill needs not performed by company personnel.

BUs/PUs will continuously improve Optimized Staffing activities to

ensure that the CMS Process remains focused on the biggest opportunitiesfor improvement within the context of achieving the GO Team vision.This includes making staffing changes as failures and operational losses

decline. More planned and scheduled activities will decrease the need for repair manpower. Precision repairs and better equipment operation will

decrease the need for condition monitoring.

BUs/PUs will take advantage of opportunities to share workforceresources when a need arises. Examples include:

q Subject matter experts during facility start-upsq Maintenance technicians during turnaroundsq Technical personnel for defect elimination teams

As the proactive maintenance regime decreases equipment failures and

effective planning and scheduling improves workforce utilization,windows of opportunity will open for optimizing workforce levels.

Utilizing contractors to handle fluctuations in workload and a thoroughtraining program to increase the capabilities of the workforce, facilityleadership can determine what the ideal staffing levels should be.

Optimized staffing levels can have a significant impact on facility fixedcosts.

Expected Outcomes

q Proactive behaviors increase as reactive behaviors decreaseq Organizational morale improves as skill sets become more

proactiveq Integrity/Safety compliance increase

q Management systems improveq Reliability metrics improve





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Redeploy and

Optimize Staffing

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


III. Process Model and Implementation

Set the stage for the successful deployment of the Optimized Staffing process:

q Raise awareness of the importance of Optimized Staffing and how

it fits into the CMS Process and the GO Strategyq Demonstrate commitment to utilize the Optimized Staffing process

to improve BU/PU operational performanceq Select well respected professionals for proactive skills

development paying particular attention to Data Analysis andPlanning and Scheduling

q Communicate the importance of maintaining high levels of competence and continuous learning of proactive skills

Initial data gathering comes from the CMS process of Data Analysisfollowed by the output of the CMS Process of ESMP/RCM. These efforts

will identify skill set and staffing gaps that must be addressed as part of performance improvement plans.

Development of recommended action plans involve:q Identifying the biggest opportunities for improvement

q Determining the value of the opportunities in regards to the BU/PU business plans and standards

q Identifying the proactive tasks and competencies needed to realizethe value of the opportunities

q Assessing the current competency to perform the proactive tasks

Optimize Staffing Process Flow

SetStage/Gather Data

Analyze Data/Set SkillCompetencyStandards

IdentifyGaps inSkills/Competencies

Develop ActionPlans to FillGaps

Monitor Progress

Analyze ActualsVs. Plan

Adjust ActionPlans

Deploy ActionPlans

CelebrateSuccessShare w/

Others




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Redeploy and

Optimize Staffing

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


q Developing a project plan for acquiring, developing and deployingthe skill competency requirements including a time line. Examples

of actions include:q Technology Equipment Acquisition

q Peer Assistsq Outside Training

q Utilize Specialty Contractors

Continue the Optimized Staffing process by:q Generating monthly KPIsq Gathering data on the level of competency being demonstrated.

This is especially important for PdM activities wherecompetency is demonstrated by predicting failures and

generating plannable precision work (refer to the CMS Processof Data Analysis).

Continuously analyze the results versus the expectations in the skills

improvement project plans. Look for opportunities to shorten skill setacquisition cycle time.

Ensure performance measures (KPIs) are used to make business decisions.Indications to determine if manpower levels are optimized include:

q Schedule Complianceq Man-Hour Backlog

q Proactive Maintenance Man-Hours Overdueq Corrective Maintenance Man-Hours Overdueq Maintenance Overtime

q Maintenance Cost

Make adjustments to action plans as appropriate to achieve theexpectations.

Spread the skill set know-how throughout the organization. Expect

everyone to learn how proactive skills are utilized to improve operational performance.

Celebrate success and share learning with other BUs/PUs. Reward peoplefor proactive behaviors, such as

q Predicting failures using condition monitoring techniquesq Analyzing failures in an RCFA study

q Completing preventive maintenance activities per the scheduleq Identifying opportunities to improve equipment availability




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Redeploy and

Optimize Staffing

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


IV. CMS Elements Improved by Redeployed andOptimized Staffing

These CMS Elements are improved by CMS Process Redeploy and

Optimize Staffing:

q Leadership and Organization—Human behaviors and managementsystems are improved as organizations learn to focus on the largestopportunities. Individual morale is enhanced as skill sets are

expanded.q Facility Availability—Availability and on-stream time increase as

Optimized Staffing efforts cause the right things to be performed at theright time.

q Work Management—Optimized staffing (especially effective Planningand Scheduling) ensures high personnel utilization on proactiveactivities like Data Analysis and Defect Elimination. Effectively

executed planned work lowers costs and lengthens the equipment

uptime before the next repair.q Change Management—Optimized staffing activities focus value on

implementing changes that will generate production and financial

rewards while ensuring health, safety and environmental stewardship.Changes that do not meet these requirements will naturally be rejected.

q Continuous Improvement—Optimized staffing is a corner stone of continuous improvement as periodic re-prioritization of opportunitiesfor improvement focuses effort where it will be most effective.

Properly utilized Optimized Staffing fosters a natural continuouslearning cycle for the organization.




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Roles, Accountabilities,

and Deliverables

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


Roles, Accountabil i ties, and

Deliverables

I. Introduction

Overview

It is unrealistic to expect an organization to run as smoothly as a well-oiled machine. Henry Mintzberg, who has studied what team leaders do

on the job, said it best: "...every manager must spend a considerableamount of time responding to high-pressure disturbances. No organization

can be so well run, so standardized, that it has considered everycontingency in the uncertain environment in advance. Disturbances arisenot only because poor managers ignore situations until they reach crisis

proportions but also because good managers cannot possibly anticipate allthe consequences of the actions they take." Assigning clear CMS roles,

accountabilities, and deliverables to bp personnel will minimize theamount of “disturbances” and ensure a smoother operation.

Definition

Authority is the right or privilege to direct employees to perform work.Management experts have distinguished two bases of authority:

1) authority based on position or title2) authority based on expertise

Leaders are more likely to succeed if they possess both types of authority.

The amount of authority depends on the position in the bp organizationstructure. The higher the position in the organization, the greater the

authority. For example, team leaders have the authority to purchaseequipment – non-management employees do not have such authority.

A general rule to remember is that, unless a particular authority was

specifically delegated to an employee, it is outside the limits of their authority.

With authority comes accountability. The person accountable for theresults is held responsible for the successful execution or implementation

of the tool, process, or action. The accountable person may delegateresponsibility to another person, but, in the final analysis, the accountable

person is ultimately liable for the results.




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and Deliverables

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


II. Objectives

Within the Common Maintenance Strategy are specific core functional

requirements that were detailed in the Leadership and OrganizationElement. Typically, these functional requirements translate into specific

job roles. Some functions may be performed by more than one person, andsome individuals may fill several functional positions. Following is a list

of specific positions and their associated roles, accountabilities, anddeliverables.

Senior Leadership (Performance Unit Leaders (PULs), DeliveryManagers)

q Fully endorse and ensure utilization of the bp Common

Maintenance Strategy (CMS)q Accountable for embedding the process within their respective

assetsq Accountable for providing CMS coaching/support to ‘key players’

within the organization, including Operations Managers, LineSupervisors, Planners, Schedulers, and Reliability Engineers

q Accountable for defining clear deliverables for ‘key players’ as

part of individual performance objectives (myHR).q Actively communicates support for CMS to the organization.

q Continuously educates the workforce on the CommonMaintenance Strategy, emphasizing the ‘real’ value of the process.

Field Team Leaders (Plant Managers, Onshore/Offshore InstallationManagers, Operations Center Manager, etc.)

Champions the bp Common Maintenance Strategy for their relevant asset

and implements the technical support/training for the CMS effort.Provides timely advice to Senior Leadership based on KPI reports asrequired.

q Leadership and Guidance

- Actively communicates support for CMS to the organization.- Manages the maintenance activities of all staff and manages

the scheduling of both contract and company maintenance

activities. Additionally, manages the Planning, Scheduling andMaterials Control personnel.

- Ensures all staff adheres to bp work processes.




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and Deliverables

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


- Provide leadership to the Maintenance team to ensure KPItargets are achieved for ‘Maintenance Compliance’,

‘Equipment Reliability’ and ‘Budget control’.- Implements Equipment Improvement Teams (EITs)

- Manages operating personnel to monitor and analyze conditionmonitoring data for all critical equipment

- Improves Manpower Efficiency and Utilization byimplementing good Planning and Scheduling techniques.

- Provide assurance of skills, competencies and support to thesuccessful implementation of CMS.

- Achieve the same level of maintenance and operations for less,

in support of the group goal (5% growth) in the move toOperations Excellence.

- Develops organizational backing necessary for implementingsubstantial change.

- Provides full support to the Planner/Scheduler, Maintenancecoordinator, Reliability Engineer, and 3

rd Party Condition

Monitoring personnel.q Problem Solving

- Ensures research, investigation and in-depth analysis is applied

before developing realistic and effective solutions to a problem, and selecting the most appropriate tools, e.g.; RCFA

q Decision Making and Initiatives- Ensures business decisions are based on KPI trends

- Bases all equipment major repair decisions on conditionmonitoring data

- Utilizes Risk Based Inspection techniques to replace Time

Based Equipment Overhauls with Condition Based Overhauls.- Discipline network for multiple asset BUs.

- Represents their ‘home’ asset when networking with other assets.

- Measures and reports (CMS) implementation progress and Networks with other Core Maintenance Network Members to

manage the overall maintenance program- Shares Information- Participates in managing vendor alliances

- Identifies and implements best practices- Sets and maintains maintenance performance targets

- Participate in external benchmarking processes.q Discipline Expertise

- Accountable for implementation of the solutions to problematic processes, i.e. RCFA, Defect Elimination and Criticality

Analysis.- Sets incremental targets for critical equipment reliability

ensuring improvement is made on a monthly basis by the

utilization of the CMS process.




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and Deliverables

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


- Sets incremental targets for plant uptime ensuringimprovements are made on a monthly basis by the utilization of

the CMS process.- Improves Equipment Reliability by providing full support to

the Reliability Engineers and 3rd Party personnel and mentorsthe same on CMS process.

q Planning and Organizational Ability- Implements all CMS activities as stated in the Implementation

Plan.- Improves Manpower Efficiency and Utilization by

implementing good Planning and Scheduling techniques.

- Identifies milestones and targets. Sets up systems for information flow.

First-Line Leaders (Foremen, Plant Supervisors)

Direct responsibility for the monitoring and operation of the facility to the

highest safety, environmental, reliability and cost effective standards.Demonstrates commitment to the Common Maintenance Strategy byinterfacing and assisting the maintenance department in executing this

vital Business process which enables the asset to become a world-classoperation.

q Facilitate teamwork between the different facility teams, facilitateand enable direct interface between Shift reports and others, e.g.

Maintenance, Engineering and Projects.q Promote and demonstrate commitment to the Common

Maintenance Strategy in order to achieve a safe, reliable and costeffective business unit

q Provide input to planning and scheduling process to ensuremaintenance work is completed in a timely manner.

q Support team members to sustain high uptime for key customers.q Support the investigation and implementation of tools to improve

plant operation.

q Maintain the same level of maintenance and operations for less, insupport of the group goal (5% growth) in the move to Operations

Excellence.q Actively improve the management of Contractor performance.

q Encourage a culture that supports the Operations Value Process(OVP) assessment.

Performance Coach

Reports to the Field Team Leader. The role of the Performance Coach isvery much an ‘influential’ role e.g. a CMS coach/mentor. He/she has no

direct reports or authority. (Authority rests with asset line supervision).




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and Deliverables

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


q Has advanced knowledge of the federal Common Maintenance

Strategy (CMS) and utilizes CMS processes to develop solutions tocomplex problems which impact the business unit.

q Provides coaching/mentoring to asset personnel on implementationof CMS including the following elements:

- Leadership and Organization- Facility Availability

- Work Management- Materials Management- Change Management

- Continuous Improvementq Provides coaching/mentoring to asset personnel on implementation

of the following CMS Processes and Tools:- Computerized Maintenance Management System (CMMS)

- Knowledge Management- Equipment Specific Maintenance Plan/Reliability Centered

Maintenance (ESMP/RCM)- Defect Elimination Program- Condition Monitoring and Process Data Collection

- Data Analysis- Operator Performed Maintenance

- Planning and Scheduling- Spare Parts Management

- Supply Chain Management- Quality Assurance and Precision Maintenance Program- Risk Based Inspection (RBI)

- Generic Equipment Maintenance Strategies- Campaign Maintenance

- Redeploy and Optimize Staffing- Roles, Accountabilities, and Deliverables

- Common Maintenance Strategy for New Projects- Capital Value Process for Turnarounds

q Provides coaching/mentoring to asset personnel for the tracking of the performance of the organization:- Key Performance Indicators (KPIs)

- Maintenance Assessmentsq Ensures correct implementation/generation of CMS KPIs.

q Facilitates KPI review sessions at each asset and provides coachingon business decisions/corrective actions, based on trends.

q Attends routine ‘Planning and Scheduling’ meetings and providescoaching to asset personnel on ‘the process rules’. In particular,

ensures staff understand the reasons for effective Work Prioritization, Backlog Management and Schedule Compliance.

q Provide CM coaching and support to Operations personnel.




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and Deliverables

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


q Ensures the maintenance requirements and condition monitoring points for all equipment through RCM/ESMP reliability analysis

are communicated and understood by Operations personnel.q Work with the site Planner/Schedulers to develop job plans for all

tasks that result from RCM/ESMP analysis.q Develop data collection routes for all surveillance tasks with result

from RCM/ESMP analysis and work with local operationsmanagement to assign these tasks to operations and maintenance

personnel.q Define the spare parts procurement strategy for parts required to

support all CM job plans.

q Coordinate 3rd

Party on site attendance to set up all PredictiveMaintenance (PdM) routes that result from ESMP/RCM.

q Coordinate the gathering, trending and monitoring of all CM data(including Vibration, Process, PRIDE and Oil Sampling) and

initiate ‘timely’ MAXIMO corrective works for specificasset/equipment as required.

q Monitor, generate and communicate the Equipment Health Report(by asset) to highlight equipment displaying unacceptablereliability related Key Performance Indicators and recommend

appropriate improvement measures.q Monitor and incorporate best practices from within bp and within

industry.q Continuously communicate status of Plant Reliability issues to

‘key’ CM personnel within the facilities, e.g. MaintenanceSupervisors, Operations Managers and Operations Supervisors.

q Demonstrate commitment to the CMS process, in particular,

facilitating and implementing the solutions to problematic processes, including RCFA, ESMP, RCM and Defect Elimination.

q Attend (or telephone conference) Production and Engineeringmeetings and provide Reliability knowledge and feedback with the

aim being to minimize plant downtime and achieve EquipmentReliability targets.

q Take ownership of assigned ‘projects’ from bi-weekly Productionand Engineering meetings and ensure completion to required timescale.

Operator/Technician

The Operator/Technician, reporting to the First-Line Leader, is recognized

as the first line of defense against equipment failures. They areresponsible for the monitoring, operation, and basic care of the equipment.Secondly, perform condition-based, preventive, and corrective

maintenance tasks as appropriate to maintain the processing facilities tothe highest safety, environmental, reliability, and cost effective standards.

They will assist in the timely execution of preventive and breakdown






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and Deliverables

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


q Demonstrates knowledge and understanding of theroles/tools/processes in the CMS:

- ESMP/RCM/FMEA techniques- Condition Based Maintenance

- Risk Based Inspection (RBI)- CMMS

- Defect Elimination (RCFA)- The Operations Excellence ‘Game’

- Planning and Scheduling- Key Performance Indicators

q Technical Support

- Collectively with Operators/Technicians, carries out 1st line

CM analysis including trending process and vibration data by

equipment type.- Coordinates training for both new and existing staff to achieve

better utilization/operational capabilities on Mechanical andCondition Based Maintenance techniques.

- Demonstrates commitment to the CMS process, in particular,the Work Order Priority definition matrix.

- Attends daily work order (WO) and permit to work (PTW)

meetings, ensuring prompt start times.- Attends scheduling look-ahead meetings and backlog review

meetings with Scheduler. (see Planning and Schedulingtraining module for meeting design)

- Provides technical input to the prioritization process.- Attends Production meetings and provides relevant trade

knowledge and feedback with the aim being to maintain the

Corrective WO backlog to within prescribed targets.q Experienced on Condition Monitoring techniques:

- Vibration data collection and Analysis- Lube and Hydraulic Oil Analysis

- Pressure/Volume analysis on reciprocating machinery- Process Data Collection

- Thermography- Ultrasonic Testing- Cooling Water Analysis

- Control Valve and Loop Diagnostics- Borescope Inspection

Planner

Demonstrates commitment to the bp Common Maintenance Strategy bymentoring others regarding CMS process details and desired results.

Committed to making the asset a safe, reliable and cost-effective facility.




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and Deliverables

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


Plans all maintenance work orders by analyzing the basic job steps,determining their relative sequence in the overall job, and identifying

parts, materials, tools, competencies, and personnel requirements for eachstep in the process. This, in turn, will ensure the timely execution of

preventive and breakdown maintenance per the CMS.

Must exhibit good communication skills in order to work in conjunctionwith Operations, Maintenance, and Engineering team members.

q Facilitates the Work Order Approval Meeting with facilitymanagement and team leaders.

q Uses the Work Order prioritization matrix – Ranking Index for Maintenance Expenditures (RIME) – to prioritize work orders.

q Estimates for each work order:- work order duration

- number of personnel needed to complete the work - specific competencies needed to perform the work

- total costs (labor, materials, services)q Determines need for materials, parts, tools, specialized services or

procedures for work completion.

q Identifies and communicates any HSE concerns and coordinatesany special equipment required to perform the job safely.

q Verifies availability of resources (labor, materials, tools, andservices) and procure where necessary before scheduling.

q Pulls inventory items required to complete the work and returnsunused items to inventory upon work completion.

q Saves failed parts as needed for failure analysis.

q Assembles planned work packages including:- Permits (PTW)

- Procedures, drawings, technical specifications- Parts/materials

- Tools or specialized equipmentq Coordinates purchase of parts as needed with Materials

Coordinator q Maintains backlog files of work orders that are waiting scheduling

in accordance with the priority limits.

q Responsible for preparing a weekly backlog report for alldisciplines and facilitates weekly discipline WO backlog review

meeting with Plant Supervisor, Maintenance Lead, MaintenanceCoordinator, and Engineering in attendance.

q Maintains preventive maintenance schedules in selection of the jobs for scheduling. If work orders cannot be scheduled within the

prescribed priority lead-time, management is promptly notified sothat proper interventions can be made.

q Reviews completed work orders for significant details about

compliance and actual conformity to work order estimates. Screens






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and Deliverables

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


q Reviews manpower availability and selects an appropriate number of work orders for scheduling.

q Adjusts schedule to accommodate progress of previouslyscheduled continuing work.

q Communicates with the Operations to ensure that equipment can be taken down for repairs.

q Works with Operations to ensure that equipment scheduled for repairs is prepared for maintenance in a timely manner (i.e.

equipment isolation is complete prior to maintenance to maximizemaintenance personnel utilization).

q Identifies permits (Permit To Work – PTW) required for the work

and requests them from Operations.q Schedules and assigns personnel to work orders a minimum of one

day in advance.q Creates full schedule for each week and distributes schedule to

team leaders, operators/technicians, and maintenance personnel.q Checks work order backlog for outstanding work orders on the

same piece of equipment. Schedules multiple work orders andPMs for the same piece of equipment at the same time when

possible based on priority and manpower availability and

competencies.q Communicates with operations and maintenance personnel to take

advantage of unplanned equipment downtimes.q Works with Planner to assemble work packages.

q Organize and ship shore-based parts, tools, and equipment asneeded for work completion.

q Tracks performance of scheduling effort (i.e. schedule

compliance).q Acts as point of contact for all Planning and Scheduling related

issues. This will involve technical assistance to other PlantMaintenance/Process personnel and external bodies (including

legislative bodies).q Demonstrates knowledge and understanding of CMS processes:

- CMMS- Planning and Scheduling- ESMP/RCM

- Condition Monitoring and Process Data Collection- Risk Based Inspection

- Spare Parts Management- Defect Elimination (RCFA)

- Key Performance Indicators and Benchmarking




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and Deliverables

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


Materials Coordinator

Demonstrates commitment to the bp Common Maintenance Strategy bymentoring others regarding CMS process details and desired results.

Committed to making the asset a safe, reliable and cost-effective facility.

Reports directly to the Maintenance Team Leader and is responsible for the purchasing of all materials requested by a work order or for inventorymanagement. Works with storage and management of materials ordered.

Must exhibit good communication skills in order to work in conjunction

with Operations, Maintenance, and Engineering team members. Must alsodeal directly with suppliers and vendors.

q Purchase stocked and non-stocked materials in accordance with

engineering specifications, quality assurance practices, andacceptance testing.

q Issue materials to Planners per work order material requests.q Optimize storehouse management including:

- Identifying special storage needs

- Reviewing stockouts and slow moving items- Optimizing stocking levels of faster moving parts

- Identifying improvements in existing work processesq Ensure proper identification of part and storage location in the field

and in the CMMS inventory management system.

q Coordinate physical stock checks and update CMMS inventorymanagement system as necessary.

q Tracks performance of materials management (i.e. stockouts andinventory turns).

q Acts as point of contact for all Materials Procurement andInventory Management related issues. This will involve technical

assistance to other Plant Maintenance/Process personnel andexternal bodies.

q Demonstrates knowledge and understanding of CMS processes:

- CMMS (or other inventory management system)- Planning and Scheduling

- Spare Parts Management- Supply Chain Management

- Quality Assurance Program- ESMP/RCM

- Defect Elimination (RCFA)- Key Performance Indicators and Benchmarking

Engineering Department

The Engineering department is responsible for internal technical assistance






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and Deliverables

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce


Technical Authority

The Technical Authority represents the primary contact in a specified areaof expertise. Areas of expertise include instrumentation and controls,

mechanical equipment, and process operations.

q Maintains engineering specifications and design guides current andin compliance with best practices and applicable regulatoryrequirements.

q Assures all deviations from the approved standards and processesare identified, justified, and authorized prior to implementation.

q Provides technical guidance on the interpretation andimplementation of gHSEr, PSIM, and CMS processes.

q Provides interpretation of regulatory requirements.q Has approval authority for Management of Change proposals

within their specific area of expertise.q Has specific knowledge of equipment within area of expertise

including:- failure modes and mechanisms- condition monitoring options

- preventive maintenance techniques- function testing requirements

- repair specifications- upgrade options- proper operating parameters, including start-up and shutdown

Reliability Analyst

Reports directly to the Operations Managers and closely works with the

facility Maintenance Lead on a frequent basis. Works with Engineering,Operations and Maintenance team members to collect and collatecondition monitoring data, identify and solve the root cause of recurring

equipment failures, and recommend solutions to the OperationsEngineering team leader. Benchmarks equipment performance as per the

Common Maintenance Strategy. Demonstrates an awareness of Environmental Management Systems and ensures facilities are operated

and maintained to the highest safety, environmental and reliabilitystandards.

q Demonstrates commitment to the CMS process.q

Assists others on CMS process details and desired results.q Committed to making the asset safe, reliable, and cost-effective.q Interfaces with internal and external customers, vendors and other

third parties as well as being an active and participating member of the Engineering team.




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q Provides an engineering resource for project work affectingreliability on all systems, including design, procurement, factory

acceptance testing (FAT), construction, commissioning, andoperations support.

q Accountable for meeting project time lines and providing requiredtechnical input/data.

q Facilitates reliability analysis processes and is accountable for implementation of recommendations.

- Defines the maintenance requirements and conditionmonitoring points for all equipment through ESMP/RCMcriticality analysis.

- Organizes and facilitates Root Cause Failure Analysis for allequipment as required.

- Works with the Planner and Scheduler to develop job plans for all tasks that result from ESMP/RCM analysis.

- Develops process data collection routes for all surveillancetasks resulting from ESMP/RCM analysis and works with local

operations management to assign these tasks to operations andmaintenance personnel.

- Defines the spare parts procurement strategy for parts required

to support all job plans.- Sets up all Predictive Maintenance (PdM) routes that result

from ESMP/RCM.q Once the Maintenance and Condition Monitoring (CM) program is

operational, the Reliability Analyst manages the gathering,trending, monitoring and corrective actions on all CM data.

q Monitors and initiates improvement measures on equipment

displaying unacceptable condition monitoring trends.q Monitors and incorporates best practices from within bp and within

industry.q Continuously communicates status of Plant Reliability issues to

‘key’ CM personnel within the facilities, e.g. Maintenance Leads,Operations Managers, and Plant Supervisors.

q Attends Production and Engineering meetings and providesReliability knowledge and feedback with the aim being tominimize plant downtime and achieve Equipment Reliability

targets. (Ref: Planning and Scheduling Training Module)q Demonstrates knowledge and understanding of the CMS

processes:- Data Analysis

- ESMP/RCM- Defect Elimination (RCFA)

- Condition Monitoring and Process Data Collection- Operator Performed Maintenance- Condition Based Maintenance

- Risk Based Inspection




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- CMMS- Key Performance Indicators and Benchmarking

Mechanical Integrity Analyst

Reports directly to the Operations Managers and closely works with thefacility Maintenance Lead on a frequent basis. Works with Engineering,Operations and Maintenance team members to collect fixed equipmentdata originating from the Risk Based Inspection (RBI) program, identify

and solve the root cause of recurring equipment failures, and recommendsolutions to the Operations Engineering team leader. Benchmarks

equipment performance as per the Common Maintenance Strategy.Demonstrates an awareness of Environmental Management Systems and

ensures facilities are operated and maintained to the highest safety,environmental and reliability standards.

q Demonstrates commitment to the CMS process.

q Assists others on CMS process details and desired results.q Committed to making the asset safe, reliable, and cost-effective.q Interfaces with internal and external customers, vendors and other

third parties as well as being an active and participating member of the Engineering team.

q Provides an engineering resource for project work affectingreliability on all systems, including design, procurement, factoryacceptance testing (FAT), construction, commissioning, and

operations support.q Accountable for meeting project time lines and providing required

technical input/data.q Facilitates reliability analysis processes and is accountable for

implementation of recommendations.- Defines the maintenance requirements and condition

monitoring points for all equipment through ESMP/RCMcriticality analysis.

- Organizes and facilitates Root Cause Failure Analysis for all

equipment as required.- Defines the spare parts procurement strategy for parts required

to support all job plans.q Determines equipment criticality and risk to operation (likelihood

and consequence of failure).q Develops risk based inspection program and provides justification

for equipment monitoring and inspection frequencies.q Monitors and initiates improvement measures on equipmentdisplaying unacceptable inspection results.

q Monitors and incorporates best practices from within bp and withinindustry.






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The graphic illustrated above describes functions, not individual people.Some roles may be combined depending on specific locations. Some

functions may require multiple people to satisfy specific facility needs.Several of the functions can be outsourced (broker managed) tocontractors. Continual communication between all members of the team

is essential in the pursuit of the Great Operator imperatives. Everyonemust be kept informed about current progress towards the goals.

Information should flow freely between all levels of the organization.Directives and support should come from above and information and

recommendations should originate from within.

IV. Implementation

The responsibility associated with being a team leader or supervisor within

bp can be weighty at times. For example, it is not enough for supervisorsand team leaders to work safely. They also must protect the safety of their

employees. Once one becomes a supervisor or team leader, it is no longer

possible to focus exclusively on work tasks. Coaching, counseling, andother people skills become vitally important. Technical skills, while stillimportant, take a backseat to leadership skills.




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Responsibility, authority, and accountability are intertwined. Employeescannot be properly held accountable for something if they were not

granted the authority required to do it. Stated another way, to be heldaccountable for a task, employees must be given:

1) responsibility for the task through delegation2) sufficient authority to perform the task

q Ensure that all personnel (team leaders to workforce) clearly

understand their authority, responsibility, and accountability

Procedures, management policies, and signature authority card define the

constraints under which team leaders must operate. Questions about thelimits of an individual’s authority should be directed to his/her immediate

supervisor. Individual responsibilities and goals are developed andreviewed periodically through the performance evaluation process

MyPerformance. Employees and team leaders are responsible for thesuccessful use of the MyPerformance process.

q Hold employees accountable for their performance

Employees involved in significant or frequent violations of policies/procedures should be counseled, retrained, and disciplined, as

appropriate.

q Enforce policies when necessary

Operating cost-effectively requires occasionally saying "no." Base

approvals for travel, overtime, etc. on business need; don't use these itemsas perks. Small expenditures soon add up to a sizeable expense when

multiplied by the total number of bp employees.

q Learn when to say "no"

Most of the time, people resent when decisions or commitments are madefor them without their consent. Team leaders should confer with their employees (when possible) before committing them to something. Team

leaders need their input to ensure that commitments can be met.

q Check before making decisions affecting other employees/sections/departments

Team leaders are responsible for commitments affecting employees within

and outside their department. Team leaders must make it clear whenemployees must consult with them prior to making such commitments of other individuals.




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q Ensure that the employees understand their authority,responsibility, and accountability

If a team leader has a problem with something someone is doing, use the

chain of command to pursue a resolution. Utilizing the chain of commandhelps to protect employee morale and preserve authority, responsibility,

and accountability structures.

q Use the chain of command to resolve problems

V. CMS Elements Improved by Roles, Accountabilities, and Deliverables

CMS Elements improved by effective definition of Roles,Accountabilities, and Deliverables are:

q Leadership and Organization – Employees who are properlyinformed and trained for their position perform better, which has a

direct impact on operating efficiency.q Facility Availability – Holding personnel accountable for facility

performance helps improve equipment availability.q Work Management – Introduction of clear expectations and

deliverables between ‘key’ individuals and teams promotesefficiency. If everyone knows what they are supposed to be doing,

what they need to do it, who they are doing it for, and what theyhave to deliver, then efficiency improves.

q Change Management – People must be kept informed to their

changing roles and responsibilities in an ever-changing workplace.q Continuous Improvement – Properly defined roles ensures that all

the necessary work is getting completed, which leads to operatingand efficiency improvements.




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Common MaintenanceStrategy for New

Projects

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and Operating


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Competent Workforce


Common Maintenance Strategy

for New Projects

I. Introduction

The goal of the Common Maintenance Strategy (CMS) for New Projectsis to ensure that reliability and maintainability are addressed during the

early stages of project development and designed into all newinstallations. Project Gatekeepers and Single Point Accountability Project

Team leaders require this input to make informed decisions to proceedthrough the phases of the Capital Value Process for New Projects. This

maintenance input is a significant portion of the front-end loading for project development, which minimizes project rework.

Overview

The Capital Value Process (CVP) for Projects adopts the principles and practices of CMS before the detailed design phase of the project so that:

q maintenance activities can be optimizedq all systems and equipment attain their intended levels of

performance and reliability immediately after commissioning andthe Great Operator (GO) Start-Up Efficiency target is attained for first year operability

q all equipment can be operated and maintained with minimumimpact on safety, the environment, unit production, and cost.

As new projects go through each stage of the CVP, it is essential that the

project management team understands the concepts and corporateexpectations of the maintenance function in the operational phase of thenew facility, so that jointly an end product is delivered that supports the

ongoing business objectives.

Definition

The CMS for New Projects is a process that addresses maintenance issuesearly phases of the project. Reliability and maintainability are both designissues. Maintenance is required as a result of design, so CMS ensures the

following factors are addressed during project development:

q System availabilityq Equipment reliability

q Accessibility




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q Spare parts needs and interchangeabilityq Condition monitoring needs

q Diagnostic facilitiesq Maintainability

q Documentation

II. Objectives

The objective of CMS for new projects is to minimize life cycle costs for

new installations. By addressing maintenance issues up front,maintenance impact can be reduced or even eliminated. The CVP for

projects has five discrete stages – all of which receive input from themaintenance department.

Experience has indicated that 50 to 70 percent of the projected life cycle

cost for new developments can be attributed to the maintenance andsupport associated with keeping the plant and equipment available and

operating throughout its planned utilization period.

Integrating maintenance goals into project development helps achieve thefollowing objectives for new projects:

q Minimize project life cycle costq Improve equipment reliabilityq Maximize equipment availability

q Optimize equipment maintainabilityq Planned proactive maintenance strategy for each piece of

equipmentq Accountability for maintenance strategy is assigned early in project

q Maintenance goals and milestones are integrated into projectschedule

q Maintenance strategy is in alignment with business objectives anddeveloped as an integral part of project design

q Maintenance experience is integrated into the design effort

q Operating and maintenance costs, historical performance, spare parts requirements, and vendor services influence equipment and

process selectionsq Structured reliability analysis tools (ESMP/RCM) are used to

determine applicability of condition monitoring instruments andtechniques and to create an optimized proactive maintenance

program for each piece of equipment




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Common Maintenance Strategy for New Projects Process Model

Maintenance input provided at each phase of the project is provided below:q Maintenance Policy input to Conceptual Design – Identification of

reliability, maintainability, and life cycle costs associated with project. Preliminary reliability modeling.

q Maintenance Strategy input to Preliminary Design – Criticalityanalysis and condition-based maintenance requirements.

q Maintenance Systems Development input to Detailed Design – Proactive maintenance and condition monitoring program, TAR

intervals, spare parts, and CMMS setup.q Maintenance Validation input to Construct and Commission –

Inspection, preservation maintenance, and acceptance testing.

q Maintenance Execution input to Operate – Implemented proactivemaintenance and condition monitoring program, condition-based

and corrective maintenance, defect elimination program, andTARs.




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IV. Implementation

Analyze

The CVP for Projects recognizes the need to incorporate maintenance

information during project development. Ensuring that operability andmaintainability requirements are built into the design may incur additionalexpense during the front-end loading phase of the project. However,

history shows that this extra capital will undoubtedly deliver lower lifecycle expenditure through reduced operating and maintenance costs.

Include personnel with relevant operating and maintenance experience onthe design team. This experience will help identify potential problems and

educate the project team on the practical implementation of a maintenancestrategy. This personnel also provides valuable input into the Reliability,

Availability, and Maintainability model.

Design

During the project conceptual design phase, fundamental maintenance

policies and processes are applied to the new project. These include:q System functional analysis

q Failure modes and effects analysisq Equipment criticality analysis

q Life cycle cost analysisq Condition-based maintenance policy

Completing these analyses on each project identifies unacceptable failure

effects and potential sources of reduced facility availability, which canthen be resolved by modifying the project design. To achieve the projectobjectives, multi-discipline teams should be involved in all stages of

project development from the feasibility study through the detailed design.

Develop

During the detailed design phase of a project, major modifications to the

project should be complete in order to optimize the balance between lifecycle cost and equipment effectiveness. Cross-functional teams review

the project design in order to provide information on expected equipmentlife cycle costs and equipment reliability. These teams also provide input

on:q machinery configurationq industry standards

q inspection requirementsq equipment layout and accessibility




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q material specificationsq spare part recommendations

q preventive maintenance tasksq condition monitoring tasks

q equipment risk (consequence of failure and probability of failure)

The development of the maintenance tasks within the proactive condition- based maintenance program follow the process illustrated below.

The equipment is separated into high, medium, and low criticality or risk groups using a risk assessment process that reviews the likelihood of

equipment failures and the consequence of those failures. Depending onthe criticality, different maintenance regimes (on-failure, condition-based,

preventive, and predictive) are implemented on each piece of equipment.

Implement

Before the project is commissioned, all the information created during the

maintenance review of the projects needs to be incorporated into theexisting maintenance and reliability program for the facility. These tasksinclude:

q Putting equipment into CMMSq Creating preventive maintenance tasks in CMMS




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q Creating condition monitoring task listsq Completing any required training for new equipment maintenance

q Establishing spare parts within storehouse system in CMMSq Preservation maintenance to equipment before start-up

q Testing of protective instrument systemsq Calibration of instrument loops

q Acceptance testing of certain equipment

Once a new project has been put into service, baseline data needs to begathered and analyzed on all rotating equipment. This baseline data

provides an excellent reference point for future condition monitoring

readings.

Evaluate

Once a project reaches the CVP ‘Operate’ stage, evaluate the entire project process. Specific modifications to the project made due to CMS

recommendations will become evident as the unit is operated. Expectedlife cycle costs and equipment reliability will be compared against theactual numbers. Key performance indicators (KPIs), such as maintenance

cost and equipment availability and reliability, will provide an on-goingevaluation of the success of the project.

Using existing CMS processes throughout the new project process asdescribed in the process flow above lead to new projects that have a well-

developed maintenance program, including a condition monitoring program, defined spare parts, and accurate information in the

Computerized Maintenance Management System. The Capital ValueProcess for Projects is fully described in other company documents. See

the CVP website at http://cvp.bpweb.bp.com

V. CMS Elements Improved by Common

Maintenance Strategy for New Projects

The CMS Elements that can be improved by integrating the CommonMaintenance Strategy into the Capital Value Process:

q Leadership and Organization – Integrating CMS processes withnew projects ensures low life cycle costs, which increases the

internal rate of return for new projects.q Facility Availability – Incorporating proactive maintenance

practices during the front-end loading phase of project

development maximizes equipment availability at lower maintenance costs.




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q Work Management – Completing CMS for new projects ensuresthat all proactive maintenance tasks are created before

commissioning.q Materials Management – Maintenance involvement during project

review ensures the proper spare parts are selected and set up.q Continuous Improvement – Developing all new projects with

equipment availability and maintainability in mind continuouslyimproves the operation of the facility.




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Capital Value Processfor Turnarounds

(CVP-TAR)

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and Operating


Costs


• Engaged and

Competent Workforce


Capital Value Process for

Turnarounds (CVP-TAR)

I. Introduction

The goal of the Capital Value Process for Turnarounds (CVP-TAR) is toalign facility turnaround results with site business objectives. The process

is based on the following principles:

q Turnarounds that support business objectives lead to reduced costs,improved scheduling, increased operability, and better safety

records.q Identifying the right people to fill TAR roles maximizes TAR

success by placing the right people on the right job at the righttime.

The Turnaround (TAR) Challenge is a rigorous internal and externalassessment program designed to improve all aspects of turnarounds. It

provides input on TAR deferral, work scope reduction, and planning andexecution best practices. Improving TAR performance directly affects site

profitability.

Overview

The Capital Value Process for Turnarounds (CVP-TAR) is a highly

structured business process designed to ensure turnarounds are completedin the optimum timing, duration, and cost. The nature of TARs is cyclic,

so the completion of one TAR immediately leads to the start of the nextTAR cycle. As with CVP for new projects, extensive effort is expendedduring the first three stages (front-end loading) to ensure company

resources are wisely utilized throughout the TAR cycle.

A portion of the detailed evaluation of turnarounds is the challenge process. All turnarounds incur an amount of planned production losses

due to equipment downtime. In order to assure that the turnaround is being organized according to the principles detailed in the CVP-TAR

process, all planned outages receive some form of TAR Challenge based

on their planned production losses. Complex turnarounds may require upto four different challenges throughout the TAR cycle to ensure an

optimized downtime.




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(CVP-TAR)

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Competent Workforce


Definition

The Capital Value Process (CVP) is a structured business process that wasoriginally designed for new projects, but has been modified for turnaround

cycles. The CVP-TAR ensures that the facility is progressing through the

TAR cycle with adequate detail. This detail is necessary to assure thatcompany funds and resources are being managed properly.

The TAR Challenge is a structured review process that provides additional

detail to ensure a successful turnaround.

II. Objectives

As with all business processes, the ultimate objective is to minimize lifecycle costs. Ensuring that adequate detail and justification exists

throughout the entire TAR cycle helps optimize a turnaround in terms of:q Timing (minimize lost production costs per market indicators)q Duration (eliminate non-TAR activities)q Costs (repair costs and lost production costs)

Detailed front-end loading of the TAR cycle ensures that the worklist

includes all mandatory activities (i.e. activities that can only be performedwhen the facility is down). Elimination of activities that can be performedwhile the unit is operating (i.e. repairs to spared pumps) helps minimize

the TAR worklist and duration. Thorough review of the results from previous TARs helps minimize ‘surprises’ that are discovered when the

equipment is opened up for inspection.

The TAR Challenge process measures the organization’s effectiveness inthe use of the CVP-TAR. The TAR Challenge is designed to add value

by:

q Providing assurance of the need for the outage and options for itsavoidance or deferral

q Ensuring available technology is used to minimize work scope,duration, and cost

q Ensuring best practices are adopted for planning and execution




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(CVP-TAR)

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Appraise Stage

q Mission: Develop TAR basis, including preliminary worklist,cost, timing, and duration

q Decision: Are key stakeholders in agreement on TAR basis and

preliminary worklist (i.e. why are we having a TAR, what kindwill it be, what will we do, when and at what cost)?

Select Stage

q Mission: Finalize worklist, develop preliminary TAR

execution plan, and update cost, schedule, and durationestimates

q Decision: What is the final agreed to worklist, schedule,

duration, and cost?

Define Stage

q Mission: Complete detailed TAR execution plan

q Decision: Is the execution plan and resource availabilitydefined and understood by field personnel to allow efficient

execution?




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Execute Stage

q Mission: Achieve on-spec operations safely and consistentwith TAR execution plan

q

Decision: Did we achieve steady state operation and put a planin place to complete post-TAR work?

Operate Stage

q Mission: Evaluate TAR performance and completedocumentation

q Decision: Has this TAR been sufficiently evaluated anddocumented to allow movement into the next TAR cycle?

IV. Implementation

The CVP-TAR defines two key roles on which the accountability for asuccessful TAR lies:

q Gatekeeper – the individual responsible for the decision made at

the end of each stage and for securing resources and funds tocontinue TAR development

q Turnaround Project General Manager (TPGM) – the team leader who directs the TAR team members to keep TAR aligned with

business goals

The TAR team is a cross-functional team created to execute the

turnaround. Members include representatives from engineering, procurement, construction, HSE, planning and scheduling, inspection, and

contractors.

Ensure the proper personnel are selected to fill these roles throughout anentire TAR cycle.

Per the CVP-TAR, all planned outages will receive a TAR Challenge.The extent of the challenge depends on the planned production loss:

q Production losses less than 10 mboe – the individual responsiblefor the outage reviews the TAR Challenge protocol.

q Production losses between 10 and 50 mboe – the individualresponsible for the outage reviews the TAR Challenge protocol

with a peer.




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(CVP-TAR)

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q Production losses between 50 and 100 mboe – the individualresponsible for the outage assembles a team within the Business

Unit to complete a thorough review the TAR Challenge protocol.q Production losses over 100 mboe – a leader not involved with the

TAR assembles a team using members from the host site and other sites to conduct a thorough review of the TAR Challenge protocol.

This is considered an external TAR Challenge process.

During the TAR cycle, a TAR Challenge may be needed to ensure theTAR is being optimized. There are four types of challenges:

q Strategy review – challenges TAR organizational, HSE, and

business strategies (12 months prior to TAR).q Scope review – challenges worklist items (6 months prior to TAR).

q Readiness review – challenges risk management and resourceallocation (3 months prior to TAR).

q Post-TAR review – reviews TAR performance for lessons learned(within 3 months after TAR).

Each individual TAR challenge takes 2-3 days to complete and ends witha presentation of recommendations to the TAR team and Performance

Unit leadership.

The eight topics that are analyzed during each TAR Challenge are:

Strategy Review (Appraise stage of CVP-TAR)

q Clarification of TAR basis – ensures valid business case for

TAR, including TAR duration and timing.q Risk assessment and management – reviews risk

management plan to reduce risks associated with TAR.q Long-term TAR strategy – determines if current TAR

scope can be adjusted to minimize future TAR scope andduration.

Scope Review (Select stage of CVP-TAR)

q Work scope control – scrutinizes worklist to minimize

work scope and ensures an approval process exists for worklist additions.

q Execution plan – confirms adequacy of TAR execution

plan by reviewing historical results, critical path, and procurement activities.

Readiness Review (Define stage of CVP-TAR)




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(CVP-TAR)

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q Preparedness – reviews plans for HSE, contingency, costcontrol, inspections, critical lift planning, resource

availability, and TAR targets (KPIs).q Communications plans – ensures shift change meetings are

well defined and TAR targets (KPIs) are availablethroughout the TAR.

Post-TAR Review (Operate stage of CVP-TAR)

q Asset performance – ensures lessons learned during theTAR are captured in a post-TAR review.

During this Post-TAR review, the TAR team also determines the effect of

the TAR Challenges and makes recommendations to further improve the process.

CVP-TAR defines several metrics to ascertain whether the TAR met its

stated goals and objectives. These include:

q Capital and Expense Costs

q Stream-to-Stream Days (TAR duration)q Man-Hours for company and contractor personnelq Percentage of add-on Work

q Safety and environmental performance

Instructions on use of the CVP-TAR can be found on the company intranetat the following addresses:

q http://cvp.bpweb.bp.com/tar/index.htmq http://gbc.bpweb.bp.com/km/shutdowns/Default.htm

q http://coryton.bpweb.bp.com/tarknow/tarretro/tarretrointro.htmq http://aberdeen.bpweb.bp.com/harding/TAR/Default.htmq http://aberdeen.bpweb.bp.com/phantom/gosearch.asp

q http://kwinana.bpweb.bp.com/localweb/TAR/default_old.htmlq http://aberdeen11.bpweb.bp.com/nbu/home.asp?id=1065

V. CMS Elements Improved by Capital ValueProcess for Turnarounds

The CMS Elements that can be improved by the Capital Value Process for Turnarounds are:

q Leadership and Organization – Front-end loading and detailedchallenges through the turnaround cycle ensure turnarounds are

completed in the optimum timing, duration, and cost.




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(CVP-TAR)

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q Facility Availability – Addressing equipment deficiencies andoptimizing TAR duration increases equipment reliability and

availability.q Work Management – Structured and challenged downtimes improve

current and future TAR performance in terms of reduced manpower,workload, and duration.

q Continuous Improvement – Thorough application of the challenge process and use of lessons learned from previous TARs improves the

efficiency and effectiveness of future TARs.




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Succession Planning

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and Operating


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Competent Workforce


Succession Planning

I. Introduction

Succession Planning seeks to identify which individuals, with the required

levels of competence, are coming through the organization to fill certaintypes of jobs in the short, medium, and long term. Effective success

planning readily identifies the likelihood for vacancies within theorganization and provides the organization the opportunity to proactivelydevelop individual competencies to fill the expected and unexpected

vacancies. The intent of succession planning is to get the right people inthe right positions. This ensures continuity in leadership and support of

valuable projects and processes.

II. Description

PROCESSA group of appropriate senior line managers meet to discuss key posts and

who could fill them in the future. They identify key posts in the team, business, division or asset, and the competencies required for each post.Using career profiles, line managers match people with posts in either the

short, medium or long term. The use of Career Profiles ensures the postsidentified for an individual in the future are consistent with the

development the individual is seeking and requires.

Following the discussion, line managers give individuals feedback statingthe positions they are listed against, suggested time frames and thedevelopment that needs to occur beforehand, to better increase the

likelihood they will fill the post.

LEARNING OUTCOMESSuccession plans occur at most levels in the organization and they ensurethat people with the appropriate experience and competency can fill key

posts. It offers a structured approach to progression and can be used tofacilitate cross-functional/business/asset movement. The process is also a

reality-check for the individual and provides them with some developmentactions to progress in the organization. Continued review of employee

developmental needs also assists in the optimization of the training program. Current people in each position can provide valuable on-the-jobrealistic training for future candidates.




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Succession Planning

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Competent Workforce


bp CONTACTLocal HR Advisers and SDDN Leaders can advise on processes anddevelopment committees.

INVESTMENT Nil. The process works best when Line Managers own the plans and have

regular discussions updating them. Some investment in computer softwarecan make production of the plans easier and quicker.

III. CMS Elements Improved by SuccessionPlanning

The CMS Elements that can be improved by Succession Planning are:

q Leadership and Organization – Company performance improves

by ensuring the right people are in the right positions.q Work Management – Proper employee placement ensures the right

work is getting completed at the proper time.q Materials Management – Training and preparation keep the correct

parts stocked and delivered to the site in a timely manner.q Change Management – Keeping critical positions filled by select

employees ensures the company continues to progress.

q Continuous Improvement – Company performance is assuredwhen there is a pool of qualified individuals ready to fill critical

positions when the need arises.




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• Leadership and

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Competent Workforce

TeamShare


TeamShare

I. Introduction

TeamShare is an example of a “trickle-down” incentive program.

Incentive programs such as this provide a bonus to individuals based onunit performance. The better the unit does as a whole the more rewards (to

a capped amount) the individual receives.

TeamShare is used to encourage behaviors such as:

q Focus on Team Objectivesq Peer Cooperation

q Commitment to GO Initiativesq Information Sharing

q Mutual Monitoringq Performance feedback to team members

TeamShare recognizes that team skills that contribute to Business Unit performance are placed above and beyond individual work skills.

TeamShare emphasizes such skills as:q Communication

q Managing conflict,q Group decision-making skills

q Flexibilityq Openness

II. Description

An example of the TeamShare structure for a business unit is depicted

below. Each section of the element receives input from a measurablesource, normally an established KPI. Definitions of applicable acronymsfollow after the diagram. A threshold goal is established to start the

program. Once the threshold is reached minimum, target and stretch goalsare activated. In order to receive an incentive reward the team and the

individual must achieve each of the minimums.




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TeamShare


DAFWCF Days Away From Work Case Frequency.

DAFWC: is a work related injury or illness that causes the injured personto be away from work the next calendar day after the injury occurred,

because he/she is unfit to perform any duties.

ASA Advanced Safety Audits. Requirements are generally set at 100%

q Field Supervisors % who performed 3 ASA/monthq Office Supervisors % who performed 3 ASA/quarter

POPAC Personal Objectives and Personal Appraisal Cycle

q Individual objectives set by end of April

q Half year performance review and PDP by end of Julyq Full year performance appraisal by mid Decq Average 5 days of training per employee

More information on this subject can be found at TeamShare on line. Anexample of a TeamShare annual project is depicted below:

BP Stream

Element

Max 10%

Stream

Production

Performance

(Safety,

Production,

R C O P )

BU Element

Max 10%

Safety *

Max 3%

Team Work

+

Production

+

Capital

Efficiency

=

Max 7%

P O P A +

Integration

D A F W C F

AS A

BP Stream

Element

Max 10%

Stream

Production

Performance

(Safety,

Production,

R C O P )

BU Element

Max 10%

Safety *

Max 3%

Team Work

+

Production

+

Capital

Efficiency

=

Max 7%

P O P A +

Integration

D A F W C F

AS A




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ProductivityImprovements

2002 Full Year Actual ( Jan GFO)

2003GO Target(Jan Plan)

2005Great Operator

Prize

Integrity MI / HIPO’s (#)Or

Loss Of Containment

OR

% Overdue IM Actions

44 3520% reduction on prior

year)

[LOC & %Overdueare proposed Group

Metrics)

N/A

Operating Efficiency Prod(mboed)

54 47 / 70 200 (cumulative)

2001 +28 2002

Facilities Upgrade Prodmboed

44 30 / 35 N/A

Unit Lifting Costs/boe $2.48 $2.30 $1.90

Per fo rmance De l ive

Production 97 Baseline 77

Beyond 105

92% Op’s Eff

Integrity Lifting Cost $315m $330m tbd

Integrity Capex $84 tbd

III. CMS Elements Improved by TeamShare

Incentivizing people to maximum productivity can improve all CMS

Elements:

q Leadership and Organization – Increased focus on GO initiatives.Increased communication within the work force. Improved

business unit performance.q Facility Availability – Increased focus on facility availability

goals.

q Work Management – Improved work force efficiency. Lower operating cost.

q Material Management – Improved inventory procurement andcontrol. Reduced operating cost.

q Change Management – Increased ownership of business unit goals.Motivated work force. Improved team and individual

accountability. Move from reactive to proactive behaviors.q

Continuous Improvement – Improved work management processes. Increased emphasis on equipment defect elimination.

Improved equipment reliability and availability. Improved businessunit practices.






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Performance Evaluation

(myPerformance)


Planning Performance is similar to creating a Performance Contract, but atan individual level. CMS Process Roles, Accountabilities, and

Deliverables will be used extensively in the development of these performance objectives. The objectives are derived from key performance

indicators (KPIs) developed for the CMS.

Performance objectives are:q Formal statements of desired end results.

q Specific to the job responsibilities.q Generated through a dialogue between employee and team leader.

Why Is It Important?

Planning Performance documents what the employee hopes to achieve inthe year ahead.

Formal objectives are:

q Ensure that what the employee is doing is aligned with companygoals and business unit targets.

q Clarify expectations and measures of success.

q Promote personal and professional development.

Checking In is an informal discussion to review progress towards theachievement of agreed objectives and actions. Checking In discussionsshould take place regularly throughout the year; at a minimum, employees

and their team leaders should have one discussion around midyear.

What Is Checking In?

Checking In is intended to encourage employees and team leaders to holdregular discussions during the year in order to help employees achievetheir objectives and Learning and Development actions and improve their

performance.

These discussions are informal meetings that involve:

q Sharing progress to date on performance.q Reviewing objectives against changes in business requirements

and new opportunities.q Reviewing learning and development actions to check that they

still meet individual development needs.


The Checking In discussion ensures that objectives remain aligned with

business needs and that performance is on track.




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More specifically, it helps to answer the questions:q Are the objectives and priorities set earlier still appropriate?

q What progress has been made toward each objective?q What is (or is not) going as expected, and why?

q What progress has been made in implementing the learning anddevelopment actions?

q What changes are needed to objectives or learning anddevelopment actions, if any?

The Final Review completes the performance management cycle. Thereview serves as a way to formally record each employee’s performance

results for the past year, transition from past accomplishments to futureobjectives, and determine personal and professional development needs

going forward.

What Is Final Review?

The end of the year performance review completes the PerformanceManagement cycle for the year.

It serves as a:q Transition point from past accomplishments to future objectives.q Springboard for ongoing personal and professional development.

q Performance record that contributes to decisions aboutcompensation, reward and other jobs.


The performance review discussion has several benefits for both

employees and team leaders:

Employees receive:

q Guidance on how to improve performance and develop personallyand professionally.

q An understanding of the contribution each has made to the performance of the organization.

Team leaders get the opportunity to:q Formally recognize accomplishments.

q Relate subordinate employee results to their own performance.q

Discuss performance improvement and personal and professionaldevelopment.

For more information on the myPerformance process see bp document“myPerformance.”




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III. CMS Elements Improved by PerformanceEvaluation

All elements that involve people can be improved by an investment in

ensuring that the performance evaluation system is fully functional.

q Leadership and Organization – Specifying individual performance

expectations and holding them accountable is a requisite of strongleadership.

q Work Management – Reviewing individual performance can help

improve planning, scheduling, and work order compliance.q Materials Management – Monitoring and holding people

accountable for storehouse performance can drive down storehouseoperating costs.

q Change Management – Frequent performance reviews are requiredto keep people on track with organizational changes.

q Continuous Improvement – Rewarding good performance ensurescontinued good human performance, which translates intoimproved equipment performance.




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Training Program

(Competency On Line)


Training Program

(Competency On L ine)

I. Introduction

Training Best Practices are those efforts that go beyond the traditionalaccepted practices such as highly rated training programs or a vast

curriculum. Best Practices in Training and Development are those effortsthat:

q Show initiative in solving business challenges.

q Support the business needs of the organization.q Use an innovative and original approach.

q Are visionary in the empowering of people.q Strengthen relationships between the organization and its

associates.

q Apply the accepted quality management principles and process.

Competency On Line is bp’s best practice in training and development.

II. Description

Training is an essential element of the Common Maintenance Strategy.

It begins the day that each employee starts working at bp, and should notstop until the day that they leave. Sometimes employees are trainees,

while other times they will be the trainers.

And never forget, learning is a continual process - there is alwayssomething useful to be learned, and there is always an expert who canshare lessons they have learned. To have been “trained” means only that

the employee has received instruction, discipline, or drills in a range of skills. However, training must ensure employee competency. This means

that the employee is properly qualified and has adequate ability to fulfil allof the duties required in a certain position, and will remain so as

circumstances change.

Training must deliver competent personnel, not just information

Competency can be broken down into four primary components.

q Knowledge – things that are known by the individual




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q Skill – activities that can be readily performedq Aptitude – the natural abilities and interests of individuals

q Behavior – how knowledge, skill, and aptitude are used

In terms of driving an automobile, understanding how the engine works isknowledge, knowing how to drive is a skill, coordination and eyesight are

aptitudes relevant to the task of driving, while careful and consideratedriving is behavior. All four of these combine to make a competent and

safe driver.

bp defines five competence levels. These are:

q Awarenessq Basic Application

q Skilful Applicationq Mastery

q Expert

At the Awareness level, there should be a basic understanding of therelevant concepts, and be able to apply these concepts in the work environment.

At the Basic Application Level, there should be a good understanding of

concepts and be able participate in their implementation according to therequirements defined in related procedures.

At the Skilful Application Level, there should be a completeunderstanding of concepts and the ability to lead groups as well as assist

others to understand these concepts. The employee should also be able todevelop, apply and monitor Key Performance Indicators related to the area

of competence.

At the Mastery level, the employee should be providing significant inputtowards designing and improving the relevant hardware, procedures and

systems. The employee will be actively seeking examples of best practice,and importing these into the Business Unit.

At the Expert level, the employee should be driving innovation in therelevant concepts by influencing company strategy and by defining new

policies

A competence management system is essential to delivering competent personnel. This involves:

q Ensuring that each job role is defined, and the competencerequirements for each role have been identified

q Determining the level of competence of personnel against the

requirements for the role that they are expected to fill




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q Implementing training programmes to close any identified gaps incompetency

q Verifying and re-verifying competency, through periodic re-testingand checking. This should be coupled with training to close any

identified gaps.q Fully documenting competency, to assist with managing and

planning training, and with assignment of personnel to new roles.

bp manages Competency differently for different workgroups.Supervisory and Professional Staff are expected to use the web-basedCompetency on Line Tool. An example of Competency On-Line is shown

below. Operating and Maintenance staff are managed by a separateBusiness Unit system. The Competence Management Assurance System,

or C-MAS, is one tool that may be used for this.

Each Business Unit is encouraged to appoint Engineering and TechnicalAuthorities with specific roles and responsibilities.




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Competency On Line Example

III. CMS Elements Improved by Training Program

The CMS Elements that are improved by the Training Program are:

Operations/Production Efficiency

Skill Name Skill Description Planning and Scheduling Planning/Scheduling, Execution of Planned Work, Documentation

1 2 3 4 5

Awareness Basic Application Skillful Application Mastery Expert Planning/Scheduling.Demonstr atesawareness of the stepsnecessary to plan andschedulework.Participates inwork prioritizationreviews and workbacklog reviews.

Planning/Scheduling.Demonstr atesunderstanding of the roleof the Planner inpreparing for workactivities.Contributes toprocess scheduling indetermining jobavailability.Demonstratesknowledge of thePlanning / Schedulingprocess from workidentification throughexecution.Implementsthe work prioritization

process in own job role.Implements Backlogmanagement techniquesin own jobrole.Demonstratesunderstanding of thedifference betweenemergency and non-emergency work.

Planning/Scheduling.Demonstr ates fullknowledge of thePlanning role inpreparing for workactivities.Demonstratesfull knowledge of theScheduler functionwithin theorganization.Representsown discipline inestablishing workpriorities gaining fullinput from all teammembers.Uses Detailed

knowledge of Facility’sequipment criticality toprioritize work.Reviewsbacklog activities andperforms analysis ofeffectiveness.

Planning/Scheduling.Has the skillsto fulfill role ofPlanner andScheduler.Deliversvalue througheffective backlogmanagement forteam.Leads workprioritizationsessions referringin detail tocriticality, cost,and productionimpact into

decisions.Analyzesall facets of theplanning /schedulingprocesses.

Planning/Scheduling.Provides high levelcoaching to teamsaround planning /scheduling workactivities.Appliesadvanced analyticalcapabilities and usesknowledge to improvethe process.Contributesto both internal / externalforums on planning andscheduling.Demonstratesunderstanding of theneed to benchmark with

other industries onplanning and scheduling.

Execution/Documentation.Demo nstratesgeneral awareness ofinformation necessaryto execute anddocument workactivities.Demonstratesgeneral awareness ofthe need to trackperformance by usingkey performanceindicators (KPI).

Execution/Documentation.Prov idestechnicians with theinformation needed toexecute and documentwork.Participates inreview of planning /scheduling keyperformance indicators(KPI's).Provides accuratework documentation andfollows-up withtechnicians to assurenecessary data input.

Execution/Documentation.Prov idesdetailed knowledge andinformation totechnicians enablingthem to execute anddocument work.Leadsreviews of planning /scheduling keyperformance indicators(KPI's).Understands theimportance of accuratework documentation.

Execution/Documentation.Moni torsKPI's to modifyprocess.Capturesboth equipmentcondition(before/after) andequipmentmanagement (e.g.cost, parts usage,laborhours)information.Drives team todeliver continuous

improvement inminimizing costsand increasingplantavailability.Usesthe full suite ofKPI's to determineproper levels ofstaffing;equipment notperforming toproper standardsand implementsaction plans torectify problems.

Execution/Documentation.Deve lops workprocesses that underpinthe planning / schedulingprocesses.Initiates,develops and leadsefforts to streamline datainput and manag ementoutputs.Contributes toboth internal and Groupforums on planning andscheduling andcommunicates outputsthroughout the

Operations community.Demonstratesunderstanding of theneed to benchmark withother industries on thesubject.




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q Leadership and Organization – Improving employee knowledgeassures company profitability.

q Facility Availability – Keeping employees up-to-date on conditionmonitoring technologies ensures their proper application and

interpretation of the data collected.q Work Management – Training planners and schedulers improves

their efficiency and compliance in the field.q Materials Management – Knowing what to stock and in what

quantities ensure an optimized spare parts program.q Change Management – Training is crucial to keeping everyone

informed of organizational and regulatory changes.

q Continuous Improvement – Training the employees in all aspectsof their positions ensures continued progress to the Great Operator

vision.




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Health, Safety, andEnvironment

(gHSEr)


Health, Safety, and Environment

(gHSEr)

I. Introduction

bp will be distinctive worldwide in our pursuit and attainment of health,safety and environmental performance. bp’s Commitment to HSE

Performance is one of the five Group Business Policies (Ethical Conduct,Employees, Relationships, HSE Performance, Control and Finance). It is

our pledge to demonstrate respect for the natural environment and to work to achieve our goals of no accidents, no harm to people and no damage to

the environment across the complete spectrum of health, safety andenvironmental risk management including personal security,

technical/operational integrity of facilities and equipment, and productstewardship. They are the boundaries within which all bp team leadersmust operate.

All Business Unit leaders must communicate the HSE Expectations to

their teams and are accountable for delivery of HSE performance. Each business unit shall have documented systems in place to meet the

Expectations, including justification, where necessary why certainExpectations are not applicable to that Business Unit.

Effective management processes fulfil the intent of the HSE expectations

will result in enhanced business unit performance, protection of our group

reputation, improvement of our liability profile, and a distinctive

leadership position in our industry and the world.

The HSE management system framework provides a broad-based set of

expectations integrated into thirteen elements of accountability. Each of the thirteen elements can be effectively supported with the proactive

management processes residing within the Common Maintenance Strategy(CMS). Key processes such as ESMP/RCM, RCFA, planning and

scheduling are viable processes, which can deliver superior HSE performance. Finally, CMS key performance indicators will provide

facility team leaders with vital information to focus on critical HSErequirements resulting in consistent and sustained HSE performanceimprovement.




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It is the Group’s intent

that these Expectations

receive full Business Unitsupport in order to build a

management systemdesigned around the

‘Plan-Perform-Measure-Improve’ cycle .

Management systems arethe people and integrated

processes that meet theseExpectations and deliver

desired, consistent business performance.The Business Unit

controls all componentsof the management

system, including setting the level of business performance. They have theauthority to satisfy the thirteen elements with existing processes, programs

and systems (e.g. ISRS, ISO, etc.) as long as conformance with theExpectations can be demonstrated.

II. Description

bp's HSE Expectations are detailed within the thirteen elements of the

HSE Management System Framework. These Expectations outline bp’srequirements for the management of:

q Safety and accident prevention

q Plant and equipment integrityq Pollution prevention

q Energy conservationq Personal, occupational and environmental health

q Personal/physical securityq Product stewardship

q Sustainable development

In all our activities and operations, we will:

q Comply fully with all legal requirements and meet or exceed these

Expectations wherever we operate in the world.

q Provide a secure working environment by protecting us, our assets,

and our operations against risk of injury, loss, or damage fromcriminal or hostile acts.




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q Ensure that all our employees, contractors and others are well

informed, well trained, engaged and committed to the HSE

improvement process. We recognize that safe operations dependnot only on technically sound plant and equipment, but also on

competent people and an active HSE culture, and that no activity isso important that it cannot be done safely.

q Regularly provide assurance that the processes in place are

working effectively. While all bp employees and contractors areresponsible for HSE performance, line management is accountablefor understanding and managing HSE risks.

q Fully participate in hazard identification and risk assessments,Assurance Audits, and reporting of HSE results.

q Maintain public confidence in the integrity of our operations. We

will openly report our performance and consult with people outsidethe company to improve our understanding of external and internal

HSE issues associated with our operations.

q Expect that all parties working on bp’s behalf recognize that they

can impact our operations and reputation, and must operate to our

standards. We will assure ourselves that our contractors’ andothers’ management systems fully support our Commitment toHSE Performance.

Incident investigations are an important part of proper HSE management.All major incidents (MI) and high potential (HiPo) situations will beanalyzed using a formal root cause analysis technique. Findings will be

documented and shared across the organization. Information about theincident investigation process is shown in the graphic below. See CMS

Process Defect Elimination Program for the decision tree, whichdifferentiates equipment failures that require a formal incident

investigation as opposed to a formal RCFA or mRCFA.




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Addressing the full set of HSE Expectations is mandatory for every

activity across the entire bp organization. The relevance, application anddegree of implementation within a particular operation or Business Unit

will be a function of:

q The operational risk profile

q Local and national regulatory requirementsq Any voluntary HSE management programs

Team leaders are accountable for putting in place appropriate documented

systems and processes for each Expectation, for ensuring continuing progress towards bp’s HSE goals and targets, and for confirming that these

processes are effective via the HSE Assurance process.The content, format and terminology of HSE management and auditsystems at the Business Unit or Functional Unit level are a matter of local

choice, provided these:q Are compatible with the Assurance Audits

q Are appropriate to operational risksq Are relevant to regulatory and voluntary codes subscribed to by bp

q Can be referenced back to all relevant Expectations set out in this

HSE Management System Framework

At the same time, we encourage standardization of programs, work processes, and procedures across similar operations and Business Units,




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and the transfer, sharing and adoption of efficient and cost-effective good practices.

This related process is a summary only. For complete information on all

bp related HSE processes and policies visit:

bp Intranet http://gbc.bpweb.bp.com/hse/policy/Hseright99

III. CMS Elements Improved by Health, Safety,

and Environment

The CMS Elements improved by the Health, Safety, and EnvironmentProgram are:

q Leadership and Organization – Reducing safety and environmental

incidents directly affects company profitability.q Facility Availability – Addressing root causes of safety and

environmental incidents also improves equipment reliability.

q Continuous Improvement – A comprehensive HSE programensures continued exceptional stewardship of health, safety, and

the environment, which promotes company performance and public acceptance.




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Process SafetyIntegrity Management

(PSIM)


Process Safety I ntegrity

Management (PSIM )

I. Introduction

Process Safety Integrity Management (PSIM) is an integral part of theGreat Operator (GO) Initiative. One of the three primary goals of the GO

Initiative is to improve integrity management, which is monitored primarily by company safety performance and number of major incident

and high potential incidents. The standard is aligned with the expectationsof ‘getting Health, Safety, and Environment right’ (gHSEr). Included

within PSIM is the Management of Change (MOC) process, whichensures continuous safe operations for temporary and permanent changes

to the facility.

II. Description

The PSIM is defined as a continuous assessment process appliedthroughout design, maintenance, and operations to assure every facility is

managed safely. The general purposes of PSIM include:q Safely contain hydrocarbons within the process equipmentq Safely manage changes to facility operations

One of the major requirements to fulfill this purpose is the identification,

maintenance, and reliability of safety critical equipment. By definition,equipment or structures are Safety Critical if they have failure modes that

would reasonably result in a catastrophic release of a hazardous material.

Processes in the Common Maintenance Strategy (CMS) effectivelysupport the deliverables of PSIM.

q Reliability analysis (ESMP/RCM) identifies equipment criticality

and develops effective maintenance activities to maintainequipment reliability.

q Planning and Scheduling provides for the effective and efficient planning and scheduling of inspection and maintenance activities

for critical equipment (e.g. process equipment, protectiveinstrument systems, etc.) either during turnaround or onlinemaintenance activities.

q The CMS provides several processes to document results of themaintenance activities and provide vital feedback in the form of

key performance indicators. Utilizing key performance indicators,




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Process SafetyIntegrity Management

(PSIM)


the operating organizations can fully utilize continuousimprovement skills to analyze and develop strategies to maintain

and ensure process equipment reliability at the lowest life cyclecost.

q The Defect Elimination Program (RCFA) readily identifies “badactors” (high failure rate and high maintenance cost equipment)

and their root causes for failure, and makes recommendations toeliminate the root causes.

Documented in PSIM are expectations that every facility should have aformal procedure for the management of change. The procedure ensures

that all changes are systematically reviewed for potential hazards and thatthe hazards are managed to an acceptable level of risk before the change is

implemented.

Examples of changes to a facility that may require an MOC review includechanges to:

q Processq Materials and process chemicalsq Equipment

q Operating and control strategies (including operating outsideestablished operating limits)

q Testing and inspection procedures and frequenciesq Operating and maintenance procedures

q Organization (including roles and accountabilities)q Systems

Once a change is identified, some of the main steps to consider during amanagement of change review are:

q Reason for the changeq Impact of the change on health, safety, security, and the

environmentq Modifications to existing procedures (or need for new

procedures)q Modifications to Process Safety Information (especially, Piping

and Instrument Diagrams – P&IDs)

q Process Hazards Analysis of the changeq Duration of the change

q Management authorization for the changeq Personnel training on the change

The management of change procedure should also specify a pre-start up

safety review to ensure that the MOC procedure was correctly applied andthat the change is safe to commission.






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Choke Model


Choke Model

I. Introduction

An attribute of successful organizations is the ability to maintain focus on

the strategically significant issues amid endless distractions. Sustainingthis discipline over the long haul is not common; oftentimes it is

dependent on the resolve of an important leader. A more resilientapproach is to utilize a management system to track and focus

organizational energy.

The Choke Model Theory depicts the flow of hydrocarbons from thereservoir through to the point of sale as they flow through a “pipeline”reduced by a series of conceptual restrictions, or chokes, in the process.

These chokes identify the gap between the maximum and the actual production, which focuses energy on the most significant operational

improvement opportunities in the producing assets of bp.

The exploration and production producing asset is seen as a pipeline withthe components of Reservoir, Wells, Plant and Export to point of sale. Aconceptual choke point is placed between each of the four components.

The installed capacity of the asset is set between the chokes yieldingcapacity for the:

q Reservoir q Wells

q Plantq

Export

Exploration and Production operations record actual production betweenthe chokes from the reservoir to the point of sale. When compared against

operational performance standards and business plans, gaps or losses areidentified.

Failure Modes and Effects Analysis (FMEA) is a reliability engineering

technique used to summarize and close the gaps between actual andexpected performance. The choke model process generates an operational

loss FMEA showing the most significant opportunities for improvement.

eChoke is a web-based choke model management system developed toenable all assets to apply the Choke Model Theory consistently across bp.Additionally, eChoke provides a common language and a transparency of

data Beyond Exploration and Production.






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History shows that maintenance professionals’ knowledge is critical toovercoming many operational problems. BU/PU leaders do well when

they leverage the synergy between operational needs and the supportingCMS Processes.

The choke model process includes the key element of prioritization of

opportunities. A 4-quadrant matrix is utilized as shown below. The chokemodel losses populate the model after they are judged on the parameters of

magnitude of opportunity (amount of loss reduction) and ease of implementation.

The matrix quickly throws out the low opportunity failure modes in the bottom half of the matrix in favor of the high opportunity losses in the

upper half.

The upper half is further broken down into the “Low hanging fruit” andthe “Tough but important” opportunities which require different

approaches as shown below.

The CMS Processes of Defect Elimination and Planning and Scheduling

are set up to directly support choke model loss elimination:q Use RCFA studies on “Tough but important” opportunities

q Use mini-RCFA studies on “Low hanging fruit” opportunitiesq Utilize Planning and Scheduling to execute the defect

elimination changes on the physical assets.

Please refer to the CMS Process descriptions for more details.

Annual

Review

Daily

ProductioneChoke

Operational

Performance

Upsets

ProductionUpset

Reporting

ProcessUpset

Root CauseAnalysis

DataAnalysis

ImmediateActions

Quarterly

Review

WeeklyMeeting

Follow-upActions

Production Loss Management – Process Flow






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III. CMS Elements Improved by the Choke ModelProcess

All of the CMS Elements are improved with choke model utilization:

q Leadership and People—Human behaviors and managementsystems are improved as the choke model focus brings the

organization together to work on the biggest opportunities for reduction in operational losses.

q Facility Availability—Availability and on-stream time increase aschoke model-focused defect elimination activities are completed.

q Work Management—Elimination of losses directly improvesoperational performance and productivity. More effort goes into

proactive activities that increase the probability of additional

operational improvement.q Change Management—The choke model focuses value on

implementing changes that will generate financial rewards whileinsuring health, safety, and environmental stewardship. Changes

that do not meet these requirements will naturally be rejected.q Continuous Improvement—The choke model prioritizes DE efforts

tackle the biggest opportunities for improvement. It is theguidance system for continuous improvement.




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Operations Value

Process

(OVP)


Operations Value Process (OVP)

I. Introduction

The Operations Value Process (OVP) is an integral part of the Great

Operator (GO) Initiative. The OVP is a high-level internal assessment program, which helps different facilities benchmark their performance

against other sites. Identified performance gaps can lead to more specificassessments, such as, Integrity Management Review and gHSEr assessment.

II. Description

The OVP measures the internal perception of the performance within thesix key expectations, which are:

q Use the right people and processesq Cause no harm to people or the environment

q Eliminate unplanned outagesq Effectively prioritize and execute planned work

q Optimize productionq Optimize costs

There are 26 practices embedded in the six expectations, and 86 elementswithin the practices. A facilitated business unit (BU) management team

meeting determines a score of 1 to 5 for each element. These scores arethen averaged to generate a score for each practice. These average scores

are then plotted to show graphical comparison of:q The BU site’s actual performance

q The BU site’s target performanceq The BU Group average scoresq The BU Group maximum and minimum scores

These ‘river bank’ diagrams are shared between facilities to help identify

performance gaps between actual performance and best-in-group performance. Once the performance gaps are identified, other portions of

the GO Initiative are used to close the gaps.

The OVP assessment can be conducted online, which immediatelygenerates the performance graphs and is easily available for review.Making performance information accessible keeps everyone informed and

motivated for improvement.




Page 225 of 324

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce

Operations Value

Process

(OVP)


For more information regarding the OVP, see the website

http://oe.bpweb.bp.com/default.asp

III. CMS Elements Improved by Operations ValueProcess

The CMS Elements improved by the Operations Value Process (OVP) are:

q Leadership and Organization – Sharing best practices improves the

performance and profitability of all facilities.q Change Management – Periodic benchmarking to identify

performance gaps increases the likelihood of changing behaviors toimprove performance.

q Continuous Improvement – Consistently reviewing and optimizing

operations to close performance gaps ensures continued facility

improvement.




Page 226 of 324

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce

Capital Value Process

(CVP)


Capital Value Process (CVP)

I. Introduction

The goal of the Capital Value Process (CVP) is to align major project

objectives with site business objectives. The process ensures that the right project is chosen, developed, and delivered. The Common Maintenance

Strategy is used throughout project development and delivery to ensurethat maintenance and reliability issues are addressed.

II. Description

The Capital Value Process (CVP) is a highly structured business process

designed to ensure company funds and resources are wisely used.Extensive effort is expended during the first three stages (front-endloading) to attain buy-in from all stakeholders and to minimize expensive

changes later in the project (especially during the construction phase).Front-end loading the project takes advantage of the fact that it is easier

and cheaper to change a project on paper than in concrete and steel.

The Process Model for the CVP is shown below with deliverables listedfor each stage. CMS issues are included with the deliverables.

Appraise Stageq Conceptual design and feasibility studyq Basis of project design

q Preliminary life cycle cost analysisq Reliability model

Select Stageq Preliminary system design

q System functional analysis and allocation requirements

q Life cycle cost analysisq Failure modes and effects analysisq Equipment criticality analysis




Page 227 of 324

• Leadership and

Organization




• Continuous

Improvement


and Operating


Costs


• Engaged and

Competent Workforce

Capital Value Process

(CVP)


Define Stageq Detailed design and project developmentq Equipment type selection

q Procurement bid evaluationq

Computerized Maintenance Management Systemconfiguration

q Preventive and predictive maintenance programq Service contracts and spare parts requirements

Execute Stageq Construction and commissioning

q System acceptance testingq Inspection

q Preservation maintenance

Operate Stageq Operate systemq Evaluate system performance

q Make modifications to improve existing systemsq Conduct preventive and predictive maintenance program

q Implement condition-based maintenance

The CVP defines two key roles for successful project execution:q Gatekeeper – the individual responsible for the decision made at

the end of each stage and for securing resources and funds tocontinue the project

q Single Point Accountability (SPA) – the project manager who

directs the project team members

The project team documents their recommendations and rationale in aDecision Support Package (DSP), which is used by the Gatekeeper to

make an informed decision at the end of each stage. The decision to bemade is:

q Proceed to the next stage

q Put the project on holdq Recycle through the current stage

q Kill the project

For more information on the Capital Value Process for new projects, see

existing company documents. See the CVP website athttp://cvp.bpweb.bp.com






Page 229 of 324


Appendices




Page 230 of 324


Appendix A

Assessments

FORMAL ASSESSMENT# Topic Practice Level 1 Level 2 Level 3 Level 4 Level 5

1 A - Leadership

andOrganization

Leaders model

posit ivemaintenance and

reliability

behaviors by

personal example

both on and off

the job, and

reinforce andreward positive

behaviors.

Leaders do not

stress MaintenanceExcellence or

Reliability

Improvement.

Emphasis on cost

control or

reduction. No

rewards programexists. Leaders

rarely, if ever,

seen in the field.

Leaders view

maintenance andreliability as

expense.

Emphasis is to cut

costs. Production

always takes

priority. Rewards

are rare.

Leaders see

maintenance andreliability as

overhead and are

concerned about

controlling costs.

Emphasis is more

on production.

Rewards aresporadic and

informal.

Occasionally see

leaders in the field.

Maintenance and

reliability are seenas important

activities and may

be given equal

consideration.

Leaders emphasize

reliability in

communicationand decision-

making. Formal

reward program is

in place.

Maintenance and

reliability are seenas value added

activities and are

given high priority

in facility

operations.

Leaders are highly

visible on a daily basis, and

empower and hold

staff accountable.

Formal reward program in place.

2 A - Leadership

andOrganization

Leaders develop

a clear maintenance and

reliability

strategy with

highly visible and

regularly updated

performance

indicators, goals,and objectives.

There is no

maintenance andreliability strategy.

An informal

maintenance andreliability strategy

exists. It is not

used to guide

leaders in decision

making. There are

few, if any,

performanceindicators

associated with the

strategy.

Employees aregenerally not

aware of it.

A maintenance

and reliabilitystrategy exists.

The strategy and

goals are not in

full-alignment

with plant

goals/CMS.

Leaders are awareof the strategy, but

do not share with

employees and

contractors or consider it in daily

planning.

A defined


exists. The

strategy/goals are

mostly in

alignment with

plant goals/CMS.

Leaders are awareof strategy, but it

is not consistently

shared with

employees/contractors. The strategy

is considered in

work plans.

A well-defined

and clearlyunderstood

maintenance and

reliability strategy

exists. The

strategy is in direct

alignment with

plant goals/CMS.Performance

metrics have been

identified and

communicated toall employees and

contractors.

3 A - Leadership

and

Organization

Leaders integrate

the maintenance

and reliability

strategy with

expectations into

business planning

and decision-making processes

and ensure that

documentedsystems are in

place to del iver these

expectations.

The maintenance

and reliability

strategy is not

integrated into

business planning

and decision-

making processes.Documented

systems are not in

place to deliver theexpected

outcomes.

The maintenance

and reliability

strategy is a

reference

document that may

or may not be used

for business planning and

decision-making.

Specificdocumentation has

not beendeveloped to

deliver the

expected

outcomes.

The maintenance

and reliability

strategy is a

guidance

document for

business planning


associated

documentation.The strategy is one

of several inputs todepartmental

business decisions.

Outcomes are not

clearly defined.

The maintenance

and reliability

strategy is fully

integrated into all

department

business planning


and their

associateddocumentation.

The strategysupports

departmental

business decision

goals and

objectives.

The maintenance

and reliability

strategy is fully

integrated and

vertically aligned

into all business

planning anddecision-making

processes and their

associateddocumentation.

The strategy drives business decision

goals and

objectives.




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4 A - Leadership

andOrganization

The facility

organization isstructured to

accomplish the

Common

MaintenanceStrategy (CMS)

(i.e. all CMS core

functional

requirements are

met, significant

support exists

from CentralizedCampaign

Maintenance

Team).

Traditional

organization rolesand

accountabilities

exist. The CMS is

not a basis for restructuring the

organization to

align with the

CMS core

functional

requirements.

Traditional


accountabilities

exist. Some

thought given torestructuring the

organization to

align with the

CMS core

functional

requirements, but

no clear directionexists.

Traditional


accountabilities

exist. Organization

recognizes gaps between existing

structure and CMS

core functional

requirements, but

no restructuring

planned. Limited

outside support byCentralized

Campaign

Maintenance

Team.

Organization

partiallyrestructured to

accommodate

CMS core

functionalrequirements

(reliability analyst,

planner, scheduler,

performance

coach, technical

authority, etc.).

Moderate support by Centralized

Campaign

Maintenance

Team.

Organization has

fully integrated theCMS core

functional

requirements

(reliability analyst, planner, scheduler,

performance

coach, technical

authority, etc.).

Significant support

by Centralized

CampaignMaintenance

Team.

5 A - Leadership

and

Organization

Each leader’s

performance is

assessed against

their personalannual objectives

and based on

feedback from

line management,

peers, and othersin the Business

Unit. (i.e.

myPerformance)

There are no

performance

criteria for leaders.

Leader’s

performance is

assessed against

high level(facility-wide)

criteria and does

not include

personal

objectives,delivery of CMS

objectives, or

peer/subordinate

feedback.

Leader's

performance is

reviewed on an

infrequent basis.Includes some

personal goals and

delivery of CMS

objectives.

Feedback fromline management,

peers , and others

in the business

unit are

occasionally an

input to the

performanceassessment.

Leader’s

performance is

reviewed on a

periodic basis.Includes some

personal goals and

delivery of CMS

objectives.


peers , and others

in the business

unit are one of the

inputs to the

performance

assessment.

Leader’s

performance,

including personal

objectives anddelivery of CMS

objectives, is

reviewed on a

frequent basis.


peers and others in

the business unit

are primary inputs

to the performance

assessment.

6 A - Leadership

and

Organization

Organizational

capabilities have

been redesignedto efficiently

execute CMS

processes.Functions have

been realigned to

break down

departmental

barriers. Work

processes have

beenreengineered.

Communication

between groupshas been

streamlined.

Organizational

capabilities and

functions have not been redesigned to

accommodate

desired change.

Fe w

organizational

capabilities andfunctions have

been redesigned to

accommodatedesired change.

Some

organizational

capabilities have been redesigned to

accommodate

desired change.Some affected

functions have

been realigned to

minimize

departmental

barriers. Some

work processesmay have been

revised.

Many

organizational

capabilities have been redesigned to

efficiently execute

CMS processes.Several functions

have been

realigned to

minimize

departmental

barriers. Common

approval and work processes have

been modified.

Communicationshave improved.

Organizational

capabilities have

been redesigned toefficiently execute

CMS processes.

Functions have been realigned to

break down

departmental

barrie rs. Work

processes have

been reengineered.

Communications between groups

has been

streamlined.

7 A - Leadership

andOrganization

Workforce

expectations arecommunicated to

personnel v ia the

myPerformance

system. Limits

There is a general

lack of clarity of job expectations.

CMS objectives

are not included in

the

There is some

confusion or lack of clarity of some

expectations.

CMS objectives

are not included in

There is a clear

expectation of job performance, but

little sense of

empowerment to

achieve it. CMS

There is a clear

expectation of job performance, and

most staff feel

empowered to

improve. CMS

All staff

understand what isexpected and are

empowered to

contribute to their

full potential. All




Page 232 of 324



of authority and

accountability areclearly defined

and understood.

myPerformance

system.

the

myPerformancesystem.

objectives are

included for leaders only in the

myPerformance

system.

objectives are

included for most personnel in the

myPerformance

system.

staff strive to

improve. CMSobjectives are

included for all

personnel in the


8 A - Leadership

and

Organization

Facility

personnel

performance is

assessed and

documented, and

feedback is

given.

Personnel

performance is not

assessed. CMS

objectives are not

par t of the

performance

assessment.

Personnel

performance is not

assessed on a

regular basis.

Documentation is

minimal and

feedback is usually

punitive rather

than constructive.CMS objectives

are not part of the

performance

assessment.

Personnel may

develop general

BU and personal

goals with delivery

of CMS

objectives. Goals

may not be

measurable. There

are occasionalinformal

performance

reviews.

Improvement

plans may bedeveloped, but are

not followed up on

a regular basis.

Personnel are

informally

involved in

developing

specific business

unit and personal

goals with delivery

of CMS

objectives. Thereare periodic

performance

reviews.

Improvement

plans aredeveloped and

reviewed

periodical ly.

Personnel are

totally involved in

developing

measurable

business unit and

personal goals

with delivery of

CMS objectives.

There areformalized and

regularly

scheduled

performance

reviews.Improvement

plans are

developed and

continually

managed.

9 A - Leadership

and

Organization

Leaders

effectively drive

change and

personnel behaviors in

alignment with

the Great

Operator (GO)

initiative and

Common

MaintenanceStrategy (CMS).

Change plans are

developed.Positive changes

in behavior are

recognized and

rewarded.

Leaders exert no

effort to achieve

the goals of the

GO initiative andCMS. No change

plan exists.

Personnel

behaviors are not

changed and there

is no progress

towards the GOand CMS

objectives.

Positive behaviorsare not recognized

or rewarded.

Leaders

communicate the

vision of the GO

initiative andCMS. No change

plan exists.

Change and

personnel

behaviors are not

aligned with the

GO and CMSobjectives.

Positive behaviors

are not recognizedor rewarded.

Leaders

communicate the

vision of the GO

initiative andCMS. Change

plans are

developed, but not

implemented.

Limited personnel

behavior change.

Rewards programfor positive change

and behaviors is

developed, butinfrequently used.

Leaders

communicate the

vision of the GO


plans are

developed and

partially

implemented and

tracked. Moderate

personnel behavior change. Rewards

program for

positive changeand behaviors is

developed and

moderately used.

Leaders

communicate the

vision of the GO


plans are

developed and

fully implemented

and tracked.

Significant

personnel behavior change. Rewards

program for

positive changeand behaviors is

developed and

frequently used.

10 B - Change

Management

The Great

Operator (GO)

strategy is the

driving force and

primary focus for

initiating change

within the

organization.The entire

business unit isaware of the

vision and its

benefits. A

streamlined

The GO strategy is

not a driving force

or primary focus

for initiating

change within the

organization.

There is little or no

awareness of thevision or its

benefits. Astreamlined

business model

has not been

created to facilitate

The GO strategy is

one of the

elements for

initiating change

within the

organization.

There is little

awareness of thevision or its


business model

has not been


The GO strategy is

one of the

elements for

initiating change

within the

organization. The

leaders of the

business unit areaware of the vision

and its benefits. Avery high level

business model

has been created to

facilitate change.

The GO strategy is

a major element

for initiating

change within the

organization.

Most of the

business unit is

aware of the visionand its benefits. A

high level businessmodel has been


change.

The GO strategy is

a driving force and

primary focus for

initiating change

within the

organization. The

entire business

unit is aware of thevision and its


business model

has been created to

facilitate change.




Page 233 of 324



business model

has been createdto facilitate

change.

change. change.

11 B - Change

Management

Team leaders are

focused on thecompany’s

vision, goals, and

the delivery of

the CMS

objectives.

Leaders are

empowered and

held accountable

for managing

change.

Team leaders are

not focused on thecompany’s vision,

goals, or the CMS

objectives. They

are not held

accountable for

managing changes.

Team leaders are

marginallyfocused on the

company’s vision,

goals, and delivery

of the CMS

objectives, but it is

not a major

activity. There is

little

accountability for

managing change.

Team leaders are

generally focusedon the company’s

vision, goals, and

delivery of CMS


not a primary

responsibility.

They have some

input to ensure

roles and

responsibilities aredefined and

adhered to

throughout the

organization.

Team leaders have

high awareness of the company’s

vision, goals, and

delivery of the

CMS objectives.

Leaders have

received some

formal training in

change

management tools

and processes andare generally held

accountable for

managing change.

Team leaders are

focused on thecompany’s vision,

goals, and delivery

of the CMS

objectives.

Leaders have

received formal

training in change

management tools

and processes and

are heldaccountable for

managing the

necessary change.

12 B - ChangeManagement

Rewards andsanctions have

been restructured

to make them

consistent with

change priorities,

goals, and values.

Positive

behaviors have

been incentivizedto stimulate

progress towards

the vision and

delivery of the

CMS objectives.

Rewards andsanctions have not

been restructured,

or may not exist.

Positive behaviors

have not been

rewarded.

Rewards andsanctions may

contain elements

of change.

Behaviors

supporting the

vision and delivery

of the CMS

objectives are

infrequentlyrewarded.

Rewards andsanctions contain

elements of

change priorities,

goals, and values.

Specific behaviors

supporting the

vision and delivery

of the CMS

objectives arerewarded.

Rewards andsanctions are

modified to

include elements

of change

priorities, goals,

and values.

Positive behaviors

supporting the

vision and deliveryof the CMS

objectives are

usually rewarded.

Rewards andsanctions have

been restructured

to make them

consistent with

change priorities,

goals, and values.

Positive behaviors

have been

incentivized tostimulate progress

towards the vision

and delivery of the

CMS objectives.

13 B - Change

Management

Key Performance

Indicators (KPIs)have been

developed to

monitor the

progress on the

change

management

process. Targetshave been

established,

measured,

trended, and

reported to the

entire

organization.

Feedback is usedto keep change

progress ontarget.

KPIs have not

been created tomonitor the

change

management

process.

A few KPIs have


change

management

process.

Generalized

targets may be

established,measured, trended,

and reported on a

limited basis.

Feedback is

minimal.

Several KPIs have


change

management

process . Broad

targets have been

established,

measured, trended,and reported to

leaders in the

organization.

Some feedback is

used to track

change progress.

A comprehensive

list of KPIs has been created to

monitor the

change

management

process. High

level targets have

been established,measured, trended,

and reported to the

organization.

Most feedback is

used to track

change progress

and make

corrections.

A comprehensive

list of KPIs drivesthe change

management

program. Targets

have been

established,

measured, trended,

and reported to theentire

organization.

Feedback is used

to keep change

progress on target.

14 B - Change

Management

Existing policy

has beenreviewed against

Existing policy has

not been reviewedagainst the GO

Few policies have

been reviewedagainst the GO

Selected policies

have beenreviewed against

Many policies

have beenreviewed against

All pertinent

policies have beenreviewed against




Page 234 of 324



the GO Vision.

Unnecessary policies and

procedures have

been eliminated.

Management processes have

been st reamlined

and unnecessary

bureaucracy has

been stripped

away.

Vision.

Management processes have not

been streamlined.

Vision. A very

limited number of policies and

procedures have

been revised,

fewer eliminated.Selected

management

processes may

have been

modified and

minor amount of

bureaucracyremoved.

the GO Vision. A

few policies and procedures have

been revised or

eliminated.

Selectedmanagement

processes have

been modified and

some bureaucracy

has been stripped

away.

the GO Vision.

Some policies and procedures have

been eliminated.

Management

processes have been modified and

some bureaucracy

has been stripped

away.

the GO Vision.

Unnecessary policies and

procedures have

been eliminated.

Management processes have

been s treamlined

and unnecessary

bureaucracy has

been stripped

away.

15 B - Change

Management

Leaders enable

active two-waycommunication

and keep

employees

informed

regarding therationale and

details behind the

change, the facts

(market demands,

competition),how each person

is affected, and

expectations for

each person.

Leaders do not

practice two-waycommunication

and do not keep

employees

informed.

Leaders practice

limited two-waycommunication

and sporadically

keep employees

informed


details behind the

change.

Leaders facilitate

scheduled two-way

communication

and periodically

inform employees


general details of

the change, some

facts about how

each person isaffected, and the

general

expectations for

each person.

Leaders enable

formal two-waycommunication

and keep

employees

periodically

informedregarding the

rationale and

details behind the

change, the facts

(market demands,competition), how

each person is

affected, and the

general

expectations for

each person.

Leaders enable


and keep

employees

frequently

informedregarding the

rationale and

details behind the

change, the facts


each person is

affected, and the

specific

expectations for

each person.

16 B - Change

Management

Everyone in the

organization

affected by the

change is

engaged.Specific

responsibilities

are assigned and personnel are

held accountable

for making the

required changes

at each level of

the organization,

from the top tothe bottom.

Few people

affected by the

change are

engaged. Little

responsibility isassigned or is

vague. No one is

held accountablefor making the

change.

Some people

affected by the

change are

engaged.

Generalizedresponsibilities are

assigned for

making therequired changes

at selected levels

of the

organization.

Personnel are not

held accountable

for making thechange.

Key individuals in

the organization

are engaged in the

change. Some

responsibilities areassigned and

personnel are

sometimes heldaccountable for

making the

required changes

at each affected

level of the

organization, from

the top to the bottom.

Most people

affected by the

change are

engaged. Specific

responsibilities areassigned to key

individuals, who

are usually heldaccountable for

making the

required changes

at most levels of

the organization,

from the top to the

bottom.

Everyone in the

organization

affected by the

change is engaged.

Specificresponsibilities are

assigned and

personnel arealways held

accountable for

making the

required changes

at each level of the

organization, from

the top to the bottom.

17 B - Change

Management

Measurable

results are

achieved quickly.

Chosen KPIsyield early proof

of positivechange.

Incremental

targets are set.

Victories are

Observable results

are not achieved

quickly. KPIs do

not indicate positive change.

Targets for changeare not set.

Measurable results

are seldom

achieved. Few

KPIs are indicatorsof positive change.

High level targetsare set. Results

are sometimes

measured in

financial terms.

Measurable results

are usually

achieved. Typical

KPIs are indicatorsof positive change.

General targets areset. Results are

measured in

financial terms,

such as return on

Measurable results

are achieved in a

reasonable time

frame. ChosenKPIs yield proof

of positive change.Periodic targets

are set. Victories

are expressed in

financial terms,

Measurable results

are achieved

quickly. Chosen

KPIs yield early proof of posit ive

change.Incremental

targets are set.

Victories are

expressed at every




Page 235 of 324



expressed at

every opportunityin financial

terms, such as

return on

investment.

investment. such as return on

investment.

opportunity in

financial terms,such as return on

investment.

18 B - Change

Management

Qualified

competent

personnel are

selected and

placed to meet

specific job

requirements per

CMS. Initial and

on-going training

meets job andlegal

requirements,

including job

descriptions,

competencytraining, and

assessment. (i.e.

Competency On

Line)

There are no well-

defined personnel

selection criteria.

There is no formal

training program

or competency

assessments.

Personnel are

selected and

placed to meet

generic job

requirements.

Minimal provision

for initial training

to meet job

requirements.

General jobdescriptions may

exist. Does not

include

competency

training and/or effectiveness

assessments.

Personnel are

selected and

placed to meet

certain job

requirements per

CMS. Provision


to meet minimum

job requirements is

included. Specific job descriptions,

elements of

competency

training, and

effectivenessassessments exist.

Qualified

personnel are

selected and

placed to meet

specific job

requirements per

CMS. Provision


to meet job

requirements isincluded. Specific

job descriptions,

detailed

competency

training, andeffectiveness

assessments exist.

Qualified

competent

personnel are

selected and

placed to meet

specific job

requirements per

CMS. Provision

for initial and on-

going training tomeet job and legal

requirements

includes job

descriptions,

competencytraining, and

assessment.

19 C - Teamwork

(internal and

external

relationships)

Leaders engage

in clear, two-way

communication

with employees,

contractors, andothers on

maintenance and

reliability issues.

Leaders do not

communicate

KPIs, goals or

objectives.

Leaders to notactively involve

employees/contrac

tors or elicit

feedback.

Dept. goals are

communicated but

rarely followed up.

There is no

mission statementor department

vision. Meetings

are not regularly

scheduled.

Employee

feedback is seldom

solicited.Contractors are

usually not

included.

Leaders

periodically

communicate

goals and

objectives and publish KPI

statistics for goal

achievement.

Many employees

are not familiar

with the mission

or its goals.Achieving goals is

not a high priority.

Contractors arerarely included.

Leaders have

periodic meetings

to discuss

maintenance and

reliability vision,goals, and

performance.

Most employees

and contractors

know objectives

and work toward

achieving them.

Communication is

formalized and

vertically

integrated across

organization.Information is

routinely and

systematically

communicated.

All

employees/contrac

tors are fullyengaged and well

informed on

maintenance/reliability mission

statement and

vision.

20 C - Teamwork (internal and

external

relationships)

Operators aredirectly involved

in equipment

maintenance.

Poor relations between

operations and

maintenance

departments.

Operators do very

few basic care

activities

(housekeeping,inspection,

lubrication needs,etc.) or condition

monitoring tasks.

Operators performminimum amount

of basic care and

condition

monitoring

activities.

Maintenance of

equipment seen as

responsibility of maintenance

department.

Operators perform basic care and

condition

monitoring

activities.

Operators view

basic care tasks as

responsibility of

operations.Operators may

perform some low-skill maintenance

activities, but view

maintenance as

primarily


condition

monitoring

activities.

Operators

understand value

of preventing and

predictingequipment failure.

Operations perform some low-

skill maintenance

activities as part of

their


condition

monitoring

activities.

Operators

understand value

of preventing and

predictingequipment failure.

Operators performor assist in all or

most routine

maintenance

activities.




Page 236 of 324



responsible. responsibilities.

21 C - Teamwork

(internal and

externalrelationships)

Customers

(Operations,

Engineering,Contractors, 3rd

Party Experts,

etc.) of themaintenance

function have a

high level of

satisfaction.

Customer

satisfaction is

never considered.There is little

understanding of

the customer requirements or

specifications.

There is some

customer

identification andrequirement

specification, but

no tracking of performance.

Customers and

requirements are

clearly defined andunderstood. A

basic tracking

system is in place, but seldom acted

upon.

Customers and

requirements are

clearly defined andunderstood. A

tracking system is

in place andreviewed

periodical ly.

Actions to

improve are

sometimes

initiated, but

seldom tracked

and closed out.

Customer

satisfaction is a

priority.Customers and

requirements are

clearly defined andunderstood.

Feedback loops

are in place to

identify needs.

Regular customer

meetings occur for

collaboration and

innovation.

22 C - Teamwork

(internal and

external

relationships)

Satisfaction

surveys are

routinely

provided tocustomers of the

core functions(performance

coach, planner,

scheduler,

reliability

analyst, technical

authority,

operator/mainten

ance technician,

etc.). Customer

dissatisfaction isformally

addressed.

Internal customer

surveys do not

exist. High levels

of customer dissatisfaction

exist and arerecognized, but

not addressed.

Internal customer

surveys do not

exist. High levels

of customer dissatisfaction

exist and arerecognized. An

informal process

to address

customer

dissatisfaction

may exist, but is

seldom used.

Formal internal

customer surveys

exist, but are

seldom used.Medium levels of

customer dissatisfaction

exist and are

recognized. An

informal process

to address

customer

dissatisfaction

may exist, but is

seldom used.

Formal internal

customer surveys

exist and are

frequently used.Medium levels of

customer dissatisfaction are

decreasing. A

formal process to

address customer

dissatisfaction

exists, but action

plans are not fully

implemented and

results are not

tracked

Formal internal

customer surveys

exist and are

frequently used.Low levels of

customer dissatisfaction

exist. A formal

process to address

customer

dissatisfaction

exists, but action

plans are fully

implemented and

results are tracked.

23 C - Teamwork

(internal andexternal

relationships)

Cross-functional

equipmentimprovement

teams (EITs) are

used to identify,

scope, and

prioritize

reliability

improvement

opportunities.

Action plans are

developed, actionis taken, and

progress is

regularly

monitored.

No cross-

functional EITsexist to address

reliability

improvement

opportunities.

No cross-

functional EITsexist to address

reliability

improvement

opportunities. An

internal process

may exist to

address reliability

improvements, but

is infrequently

used. Action plansare rarely

developed.

An informal cross-

functional EITmay exist to

address reliability

improvement

opportunities.

Priorities are

informally

assigned. Action

plans are

developed, but

action is seldomtaken. Progress is

not regularly

monitored.

Cross-functional

EITs routinelymeet and identify

reliability

improvement

opportunities.

Priorities are

informally

assigned. Action

plans are

developed and

action taken.Progress is not

regularly

monitored.

Cross-functional

EITs routinelymeet and identify

reliability

improvement

opportunities.

Priorities are

formally assigned.

Action plans are

developed and

action taken.

Progress ismonitored. New

improvement

opportunities are

identified and

prioritized.24 C - Teamwork


relationships)

Cross-functional

team meetingsare routinely held

to discuss asset

and business

objective issues.

Cross-functional

team meetings todiscuss business

objectives are rare

or non-existent.

Cross-functional

meetings areirregularly held to

discuss business

objectives. Other

topics take

Cross-functional

meetings areregularly held to

discuss business

objectives.

Structured agendas

Cross-functional


discuss business

objectives.

Structured agendas

Cross-functional


discuss business

objectives.

Structured agendas






Page 238 of 324



maintenance work

each day.Inefficient

maintenance

personnel

utilization.

and equipment

preparation.

materials causing

frequent delays.Schedule

compliance is low.

to schedule.

Schedulecompliance is

greater than 60%.

greater than 80%

and is continuingto improve.

28 D - Planning

and

Scheduling /

Work Control

Work requests

are efficiently

reviewed and

approved.

There is no formal

review and

approval process

for work requests.

Operations

verbally directs

maintenance work

without formal

planning,

priori tizat ion, or

scheduling.

Work requests

verbally approved

by operations or

maintenance team

leader. Minimal

standard for the

creation of work

requests or level of

acceptable detail.

Frequent work requests with

insufficient detail.

Work requests

typically reviewed,

approved, and

prioritized during

multi-discipline

planning meetings.

No preliminary

estimates

available.

Standard for minimum level of

acceptable detail.

Occasional work

requests with

insufficient detail.

Work requests

reviewed,

approved, and

prioritized during

multi-discipline

planning meetings.

Preliminary

estimates used in

approval and

prioritizat ion process. CMMS

assistance for the

development of

work requests at

the sufficient levelof detail.

29 D - Planning

and

Scheduling /

Work Control

There is a high

level of

maintenance

efficiency. The

planning and

scheduling effort

is highly

effective.

Maintenance

planning and

scheduling

effectiveness is not

tracked and is

unknown.

The maintenance

work process is

inefficient in that

personnel often

have to wait for

parts , permits and

tools. There is

little automation tothe process.

Planning and

scheduling


tracked, nor is

improvement a

driving force.

A routine

maintenance work

process exists, but

is often not

formally followed

or sufficiently

automated to be

efficient. Workersseldom complete

more than one task

per day. Tracked

maintenance

backlog is

typically

addressed viaovertime or

deferral.

There is a formal

routine

maintenance work

process which is

followed.

Maintenance

utilization is above

50%. Planningand scheduling

effectiveness is

tracked, but efforts

to improve are

seldom initiated.

There is a formal

routine

maintenance work

process which is

followed.

Maintenance

utilization is

greater than 75%.Planning and

scheduling

effectiveness is

tracked. Efforts to

improve are

initiated based on

observed performance gaps

vs. targets.

30 D - Planning

and

Scheduling /

Work Control

Manpower levels

are optimized.

It is unknown if

the number of

workers is correct

for the work

required. There islittle attention paid

to manpower

levels.

Efforts have been

initiated to cut the

maintenance

workforce level

without regard tooptimizing the

workload.

The maintenance

workforce level

has been set at the

minimum

necessary to perform work

based on historical

estimates of

backlog in a

primar ily reactive

environment.

Periods of high

workload areaddressed through

overtime or contract labor.

Efforts have been

made to align the

workforce level

with specifically

defined proactiverequirements and

expected reactive

tasks. However,

critical, proactive

activity is often

deferred due to

unexpected

failures.

Optimization of

maintenance

workforce level

has been achieved

through alignmentwith task

optimization and

the prevention of

critical failures

through proactive

analysis

(ESMP/RCM).

"Living program"reviews include re-

evaluation of manpower

requirements.




Page 239 of 324



31 D - Planning

andScheduling /

Work Control

Integrated high

level and long-term planning is

performed and

regularly

updated. These plans direct daily

maintenance

activities.

No integrated

long-term planning is

completed.

Long-term

planning is limitedto the upcoming

turnaround.

Long-term

planning has aone-year forecast,

but is rarely

reviewed and

updated.

Long-term

planning extendsto two years and

the next two

turnarounds.

Long-term plansare updated

annually.

Long-term

planning extendsto five years and

the next two

turnarounds.

Long-term plansare updated

annually.

32 E - Equipment

Reliability

Maintenance and

reliability

management

systems and tools

(e.g. CMMS,

ESMP/RCM,

RCFA, EDS,Data Analysis

tools, Materials

Management

system, etc.) are

developed,documented,

implemented, and

supported

throughout the

organization.

Maintenance and

reliability

management

systems are not

being used.

Some of these

systems exist, but

are not fully

utilized or

supported. They

are used to

document andmanage

maintenance on a

sporadic basis.

Some of these

systems exist and

are fully utilized

and supported.

Personnel are

familiar with the

tools they use anduse them to

document and

manage

maintenance on a

regular basis.

Most of these

systems exist and

are fully utilized

and supported.

Key maintenance

and reliability

personnel arefamiliar with some

of the tools

available and use

them to document

and managemaintenance on a

regular basis.

A comprehensive

integrated suite of

systems exists and

is fully utilized

and supported. All

maintenance and

reliability personnel are

familiar with all of

the tools available

and use them to

document andmanage

maintenance on a

regular basis.

33 E - Equipment

Reliability

Significant

equipment

failures are

investigated to prevent

recurrence.

Improvements

are made based

on the

recommendations

for theseinvestigations

(RCFA, mRCFA,

IncidentInvestigations).

Few investigations

are conducted on

failures. The

investigation process is not well

defined.

Improvements are

never made.

Only significant

safety,

environmental,

and productionincidents are

investigated.

Investigation

process is not well

defined. Analysis

is driven to

symptoms or physical root

causes of failure.

Improvementsonly made after

significant

events/losses.

Sporadic and

chronic (recurring)

equipment failures

are investigated, if costs exceed

threshold.

Analysis driven to

physica l and

human root

causes. Few

personnel are welltrained on

investigation

process.Improvements

made in favorable

economic times.

Sporadic and

chronic equipment

failures are

investigated if costs or failure

rate exceeds

minimum

threshold.

Investigation team

is led by well-

trained facilitator.Analysis driven to

management

system rootcauses.

Improvements for

large short-term

return.

Sporadic and

chronic equipment

failures

investigated if cost, production

loss, or failure rate

exceed updated

threshold. Teams

led by well-trained

facilitator.

Analysis driven tomanagement

system root

causes.Improvements if

life-cycle cost

shows return.

34 E - Equipment

Reliability

Equipment

reliability and

availability are

continuously

improving.

There is a history

of poor reliability

and availability,

with little effort to

improve.

There has been

some effort to

improve in areas

where there are

well known

deficiencies, but

these efforts have

been most lyinformal, and have

yielded little or nosustained

improvement.

There has been

some effort to

improve via

formal techniques

(RCFA,

ESMP/RCM)

which have been

successful, butonly in areas

where there arewell known

deficiencies, or

during favorable

economic times.

There is a formal

process in place to

evaluate failures

and recommend

improvements, but

it is only utilized

ad-hoc when

someone requestsit. Improvements

are often cyclical.

There is a formal

process in place to

evaluate failures

and recommend

improvements.

All failures are

evaluated on some

level to determine potential areas for

improvement.Recommendations

are implemented

and performance is

continually




Page 240 of 324



Improvements

tend to be cyclical.

improving.

35 E - Equipment

Reliability

The proactive

maintenance

program isdeveloped and

instituted per

recommendationsfrom reliability

analysis

(ESMP/RCM,

RBI, MI).

(Proactive

maintenance

includes

condition

monitoring,

predictive and preventive

maintenance, andfunction testing.)

Little or no

proactive

maintenanceexists, only

reactive

maintenance. Any preventive

maintenance or

condition

monitoring

activities that are

completed are

seldom

documented and

did not originate

from reliabilityanalysis.

Proactive

maintenance

program is limitedto preventive

(time-based repair

and replacementactivities)

maintenance.

Condition

monitoring is

limited to operator

rounds that are not

formalized in a

database and did

not originate from

reliability analysis.

Proactive

maintenance

program has preventive and

predictive

maintenance(vibration

monitoring,

thermography, oil

analysis, etc.)

tasks, which are

assigned within a

specific equipment

type without

regard to risk,

failure history, or reliability analysis.

Proactive

maintenance

program includes preventive and

predictive

maintenance tasks,which are assigned

to equipment

based on

equipment risk

(likelihood and

consequence of

failure), dominant

failure

mechanisms, and

reliability analysisrecommendations.

Proactive

maintenance

programemphasizes

condition

monitoring and predictive

maintenance over

time-based

intrusive tasks.

Proactive tasks are

assigned based on

equipment risk,

failure history,

dominant failure

mechanisms, andreliability analysis.

36 E - EquipmentReliability

Major equipmenthas performance

acceptance

criteria

(vibration,

temperature,

pressure, amp

load, etc.) for

repairs performed

in-house or off-

site. Companyexpertise is

utilized to

perform

acceptancetesting of

repaired

equipment.

No equipment performance

criteria exist.

Company

expertise is not

utilized to perform

acceptance testing

on repaired

equipment.

No companyequipment

performance

criteria exist.

Vendor-developed

performance

criteria are used.

Company

expertise is not

utilized to perform

acceptance testingon repaired

equipment.

Companyequipment

performance

criteria exist, but

are seldom used.

Vendor-developed

performance

criteria are

preferably used.

Company

expertise isinfrequently used

to perform

documented

acceptance testingon repaired

equipment.

Company andvendor-developed

equipment

performance

criteria exist and

are regularly used.

Company

expertise is

utilized to perform

documented

acceptance testingon most repaired

equipment.

Engineeredcompany and

vendor-developed

equipment

performance

criteria exist and

are routinely used.

Company

expertise is

frequently utilized

to performdocumented

acceptance testing

on all repaired

equipment.

37 E - Equipment

Reliability

A formal

engineered

lubrication

program is in

place, including

lubricant

identification,correct lubricant

application,

labeling, storage,

sampling,

quality,contamination

prevention, etc.

A formal

engineered

lubrication

program does not

exist. Site

experience and

vendor recommendations

form the basis for

lubricant selection

and replacement.

Companylubrication

recommendations

do not exist.

A formal

engineered

lubrication

program does not

exist. Site

experience and


form the basis for

lubricant selection

and replacement.

Companylubrication

recommendations

exist, but are

rarely used.

A formal

engineered

lubrication

program does not

exist. Site

experience and


form the basis for

lubricant selection,

replacement, and

proper storage.Company

lubrication

recommendations

exist, but are

rarely used.

A formal

engineered

lubrication

program is under

development. Site

experience and


form the basis for

lubricant selection,

replacement,

proper storage,contamination

prevent ion, proper

oil level, and

proper bearing

grease quantities.

A formal

engineered

lubrication

program is the

basis for lubricant

selection,

replacement, proper storage,

labeling,

contamination

prevent ion, proper

oil level, and proper bearing

grease quantities.




Page 241 of 324



38 F - Technology

Utilization

Condition

monitoring (and predictive

maintenance

tasks) results are

collected,analyzed, and

used to make

decisions on the

scope of

equipment

repairs and

overhauls?

Very little

conditionmonitoring is

conducted. Few

results are used to

make decisions onequipment.

Some condition

monitoring data iscollected on round

sheets and the

information is

manually reviewed by operating

personnel.

Decisions are

made on this

information only if

readings are out-

of-range.

A formal condition


maintenance

program exists

with a definedreview process.

Data is manually

collected and some

may be entered

into a database.

Data is used to

make decisions onequipment based

on out-of-range

readings.

A formal condition


maintenance

program exists


Data is collected

on handheld

computers.

Information is

occasionally

reviewed and usedto make decisions

on equipment.

A formal condition


maintenance

program exists


Data is collected

on handheld

computers.

Information is

reviewed

frequently andused to make

decisions based on

out-of-range

readings and

trends.

39 F - Technology

Utilization

All drawings

(P&IDs, PFDs,

equipmentdrawings, one-

line diagrams,

etc.) reside on the

facility's

computer network. The

drawings are

routinely redlined

and updated.

Drawings are

incomplete or

inaccurate. Nodrawings are

stored on

computer network.

Hardcopy of

drawings may notexist. Drawings

are not reviewed

and updated.

Drawings are

incomplete or

inaccurate. Nodrawings are

stored on

computer network.

Hardcopy of

drawings isavailable at the

site. Drawings are

rarely reviewed

and updated.

Drawings are

sometimes

incomplete or inaccurate.

Specific drawing

types are stored

view-only on

computer network.Hardcopy of

drawings is

available at the

site. Drawings are

infrequently

reviewed and

updated.

Drawings are

mostly complete

and accurate. Alldrawing types are

stored view-only

on computer

network.

Hardcopy of drawings is

available at the

site. Drawings are

routinely

reviewed, but

infrequently

updated.

Drawings are

complete and

accurate. Alldrawing types can

be redlined on

computer network.

Hardcopy of

drawings isavailable at the

site. Drawings are

frequently

reviewed and

updated.

40 F - Technology

Utilization

Vibration

analysis is

routinely used to

assess rotatingequipment health.

Operators/technic

ians collectvibration

readings.

Company

expertise is used

to perform full-

spectrum

vibrationanalysis.

Vibration data

collectionfrequency is

optimized.

Vibration analysis

is not performed

on any equipment.

Vibration levels

are assessed by

operator/technicia

n using humansenses only (touch,

sound, and sight)

during normaloperator rounds.

No vibration tools

are used to collect,

analyze, and trend

data.

Vibration data is

routinely collected

by

operator/technicians on majority of

equipment

regardless of equipment

criticality.

Analysis and

trending may not

be conducted

formally.

Companyexpertise rarely

used. Frequencies

not optimized.

Vibration data is

routinely collected

by

operator/technicians on most

equipment

regardless of criticality.

Analysis and

trending may not

be conducted

formally.

Infrequent use of

companyexpertise.

Frequencies not

optimized per findings

Vibration data is

routinely collected

by

operator/technicians on selected

equipment based

on criticalityanalysis. Analysis

and trending is

conducted

formally.

Company

expertise is

frequently used.Frequencies

optimized per

findings.

41 F - Technology

Utilization

Used oil

(lubricating andhydraulic)

analysis

(spectrography

and ferrography)

A lubricating oil

and hydraulic oilanalysis program

does not exist.

Visual oil

inspection

Visual oil

inspection performed by s ite

personnel. Oil

samples are rarely

collected and

Oil sample

collection isroutinely

scheduled, but

schedule

compliance is

Oil sample


scheduled.

Schedule

compliance is

Oil sample


scheduled.

Schedule

compliance is




Page 242 of 324



is routinely

utilized to assessequipment health

and lubricant

condition. Lab

results are readilyavailable and

linked to the

CMMS.

performed by s ite

personnel.

analyzed by lab.

Results are rarelyreviewed and

acted upon.

Results are in

hardcopy formatand are not timely

for appropriate

response.

poor. Critical oil

samples have not been identified.

Results are rarely

reviewed and

acted upon.Results are in

hardcopy format

and are not timely

for appropriate

response.

high. Critical oil

samples have beenidentified by site

experience.

Results are

frequentlyreviewed, but

action is seldom

taken. Results are

hardcopy. Lab

calls for critical

results.

high. Critical oil

samples have beenidentified by

criticality analysis.

Results are

frequentlyreviewed and

action is taken.

Lab results are e-

mailed and may

integrate with

CMMS.

42 F - Technology

Utilization

State-of-the-art

machinery

diagnostic

analysis tools for gas turbines,

engines, and

reciprocating

compressors are

routinely used toassess equipment

condition.

Machinery

diagnostic analysis

tools are not used.

Running with no proactive

maintenance may

be acceptable.

Some intrusive

time or calendar- based maintenance

activities may be

performed. High

maintenance cost

and low reliabilityexperienced.

Limited use of

machinery

diagnostic analysis

tools. Intrusivetime or calendar-

based maintenance

activities are

performed.

Previous analysisfindings are not

reviewed. High

maintenance cost

and low reliability

experienced.

Machinery

diagnostic analysis

tools are used.

Intrusivemaintenance

activities are

performed.

Previous analysis

findings arereviewed, but

correct action may

not occur.

Reduced

maintenance costand improved

reliability over

past performance

experienced.

Machinery

diagnostic analysis

tools are used.

Findings aredocumented,

reviewed, and

used to determine

scope of

maintenanceactivities. Many

repairs and

overhauls are

condition-based.

Low maintenancecost and high

reliability

experienced.

Machinery

diagnostic analysis

tools are used.

Engineeringreviews findings to

determine

optimum scope of

maintenance

activities. Mostrepairs and

overhauls are

condition-based.

Optimized

maintenance costand higher

reliability

experienced.

43 F - Technology

Utilization

Thermography

(infrared) is

routinely used to

assess the health

of a variety of

equipment types.

Equipmentapplication and

frequency of data

collection isdetermined by

criticality

analysis.

Thermography is

not utilized for

equipment

condition

monitoring.

Thermal imaging

camera andhandheld infrared

thermometers are

not available at thefacility.

Thermography has

limited

application. Only

simple handheld

infrared

thermometers are

used byoperator/maintena

nce technicians

and frequency isnot formally

scheduled.

Findings are not

documented.

Infrequent use of

thermal imaging

camera is limited

to electrical

equipment.

Findings are

documented, butaction is rarely

taken. Handheld

infraredthermometers are

limited to rotating

equipment

bearings, but

findings are not

documented.

Thermal imaging

activities derived

from criticality

analysis and are

used for condition

monitoring of

multiple types of equipment.

Findings are

documented andaction is usually

taken. Frequency

of data collection

is not optimized

per findings.

Thermal imaging

activities derived

from criticality

analysis and are

used for condition

monitoring of

multiple types of equipment.

Findings are

documented,reviewed, and

appropriate action

is taken.

Frequency of data

collection is

optimized per

findings.

44 F - Technology

Utilization

Borescope

inspections are

routinely used on

a wide variety of

equipment toreplace intrusive

internalinspections.

Borescope is

available and

personnel are

Borescope

inspections do not

exist. Intrusive

inspections

required to assessinternal condition.

Borescope

inspections are

infrequently

performed.

Preference is givento intrusive

internal conditioninspections.

Borescope is not

readily available at

the facility.

Borescope

inspections are

infrequently

performed on a

limited variety of equipment.

Preference is givento intrusive

internal condition

inspections.

Borescope is

Borescope

inspections are

frequently

performed on a

limited variety of equipment to

replace intrusiveinternal condition

inspections.

Borescope is

available at the

Borescope

inspections are

frequently

performed on a

large variety of equipment to

replace intrusiveinternal condition

inspections.

Borescope is

available at the




Page 243 of 324



trained. Contractors are

used when borescope

inspection is

performed.

available at the

facility, butseldom used. Few

or no trained

personne l on si te.

facility. Site

personnel are welltrained. Action

regularly occurs

based on findings.

facility. Site

personnel are welltrained. Action

regularly occurs

based on findings.

45 F - TechnologyUtilization

Ultrasonicanalysis is

routinely used to

assess a wide

variety of

equipment health

and check for

leaks. Ultrasonic

devices are

available and

personnel aretrained.

Ultrasonic analysisdoes not exist.

Human senses are

used for condition

monitoring.

Ultrasonic analysisis infrequently

performed.

Preference is given

to human senses

for condition

monitoring.

Ultrasonic device

is not readily

available at the

facility.Contractors are

used when

ultrasonic analysis

is performed.

Ultrasonic analysisis infrequently

performed on a

limited variety of

equipment.

Preference is given

to human senses

for condition

monitoring.

Ultrasonic device

is available at thefacility, but

seldom used. Few

or no trained

personne l on si te.

Ultrasonic analysisis frequently

performed on a

limited variety of

equipment to

replace human

senses for

condition

monitoring.

Ultrasonic device

is available at thefacility. Site

personnel are well

trained. Action

regularly occurs

based on findings.

Ultrasonic analysisis frequently

performed on a

large variety of

equipment to

replace human

senses for

condition

monitoring.

Ultrasonic device

is available at thefacility. Site

personnel are well

trained. Action

regularly occurs

based on findings.46 F - Technology

Utilization

Motor current

analysis (static

and dynamic) is

routinely used to

assess motor

condition. Motor

current analysis

instrument is

available and personnel are

trained.

Motor current

analysis does not

exist.

Motor current

analysis is not

performed. Motor

is only tested as

specified after

repairs at the shop.

Motor current

analysis

instrument is notreadily available at

the facility.

Motor current

analysis is

infrequently

performed only on

large horsepower

motors. Motor

current analysis

instrument is not

readily available atthe facility.

Contractors are

used when motor

current analysis is

performed.

Static (off-line)

motor current

analysis is

frequently

performed only on

large horsepower

motors. Motor

current analysis

instrument isavailable.

Contract or

company experts

perform analysis.

Actions may occur

based on findings.

Static and dynamic

(on-line) motor

current analysis is

frequently

performed on

selected motors.

Motor current

analysis

instrument isavailable. Contract

or company

experts perform

analysis.

Appropriate

actions occur per

findings.

47 F - Technology

Utilization

Training is

provided on

condition

monitoring and

predictive

maintenance

techniques tomaintenance

personnel. Their

competency is

assessed for each

technique.

Training for

condition

monitoring and

predictive

maintenance

techniques exists,

but is not providedto operating and

maintenance

personnel.

Competency is not

assessed.

Limited classroom

and no on-going

training for

condition

monitoring and

predictive

maintenancetechniques is

provided to

operating and

maintenance

personnel.

Training is not

determined by a

needs assessment.Competency is not

assessed.

Classroom and

limited on-going

training for

condition

monitoring and

predictive


provided to

operating and

maintenance

personnel.

Training is

determined by a


formally assessed.

Classroom and on-

going training for

condition

monitoring and

predictive

maintenance

techniques is provided to

operating and

maintenance

personnel.

Training is

determined by a

needs assessment.

Competency isformally, but

infrequently,assessed.

Extensive

classroom and on-

going training for

condition

monitoring and

predictive


provided to

operating and

maintenance

personnel.

Training is

determined by a

needs assessment.Competency is

frequently andformally assessed.

48 F - Technology

Utilization

The correct out-

of-range alarmsettings are

No alarms have

been created.Corporate/industry

Alarm settings

have been createdfor some condition

Alarm settings

have been createdfor most condition

Alarm settings

have been createdfor most condition

High and low

alarm settingshave been created




Page 244 of 324



created for the

conditionmonitoring and

predictive

maintenance

tasks (e.g.vibration,

thermography, oil

analysis,

equipment

performance,

etc.). Appropriate

response actionsare created for

each alarm

condition.

standards are

available, but notused to set alarm

limits. No

response actions

have been created.

monitoring and

predictivemaintenance tasks.

Corporate/industry

standards and site

experience areavailable, but not

used to update

alarm settings.

Action responses

created for few

alarm conditions.

monitoring and


Site experience is

used to update

alarm settings.Action responses

created for some

alarm conditions.

monitoring and


Corporate/industry

standards and site

experience are periodically used

to update alarm

settings. Action

responses created

for most alarm

conditions.

for all condition


maintenance tasks.

Corporate/industry

standards and siteexperience are

regularly used to

update alarm

settings. Action

responses created

for all alarm

conditions.

49 F - Technology

Utilization

The use of

technology in

predictive

maintenance is

regularlyreviewed,

evaluated, and

optimized. A

formal program

is in place toevaluate the

benefit of the

existing

technologies and

to review the

usefulness of new

technologies.

Technology

utilization is low

and there are no

efforts underway

to incorporate newtechnology at the

site.

Some maintenance

technologies are

used in predictive

maintenance.

Results are rarelyreviewed. There is

no program to

evaluate new

technologies or the

benefi t of existingtechnologies.

Some maintenance

technologies are

used in predictive

maintenance.

Results are usuallyreviewed, but

rarely acted upon.

An informal

program exis ts to

review the benefitof existing

technologies.

New technologies

are rarely

reviewed or

incorporated.

Several

maintenance

technologies are

used in predictive

maintenance.Results are

regularly reviewed

and acted upon. A

formal program

exists to reviewthe benefit of

existing

technologies.

New technologies

are sometimes

reviewed and

incorporated.

Many maintenance

technologies are

used in predictive

maintenance.

Results are alwaysreviewed and

acted upon. A

formal program

exists to frequently

review the benefitof existing

technologies and

look for new

technologies to

incorporate.

50 G - Materials

Management

Materials are

efficiently

obtained through

work orders.Materials are

staged or 'kitted'

(picked and placed) for

maintenance

work. The

Planner is

notified when all

materials are

ready for use.

Planned work

orders do not

verify inventory

before request ingmaterials.

Materials picked

or ordered whenstorehouse is

informed of work

order needs.

Planner must

check with

storehouse for

arrival of items.

Planner can check

inventory before

adding to work

order.Unavailable parts

can be purchased

for the work order by direct request

from planner to

storehouse

personnel.

Materials gathered

as needed when

work order isscheduled.

Work order checks

inventory for parts

and reserves

available parts.Work order alerts

planner to

unavailable parts.Planner requests

parts direc tly from

storehouse

personnel.

Materials are

gathered after all

materials havearrived on site.

Work order

reserves available

parts. Request for

unavailable partsautomatically sent

to storehouse

personnel for purchase.

Materials reserved

by work orders are

'kitted' so all tools

and parts are

available in the

same location andPlanned notified.

Work order

reserves available

part s and

automaticallyorders unstocked

parts per preferred

provider relationships.

Requisitions for

special parts

automatically sent

to storehouse for

purchase. All

materials areautomatically

'kitted' and Planner

notified.

51 G - Materials

Management

Inventory quality

is effectivelycontrolled. (e.g.

Qualityacceptance

criteria, Positive

Material

Identification

No environmental

controls. Nospecialized storage

(temperature,humidity,

orientation,

rotation,

lubrication, etc.).

Some materials

stored incontrolled

environment.Little specialized

storage. Incoming

bills of materials

verified against

Some materials

stored incontrolled

environment.Limited

specialized storage

available. Bills of

material verified

Most materials

stored incontrolled

environment.Specialized

storage available.

Parts from non-

preferred

Most parts stored

in controlledenvironment.

Specializedstorage available

as appropriate.

Parts from non-

preferred






Page 246 of 324



55 G - Materials

Management

Quality parts are

used when performing

repairs. An

MOC

(Management of Change) process

applied when

non-OEM

(Original

Equipment

Manufacturer)

materials areused.

A process for

qualifying the useof non-OEM parts

does not exist.

Non-OEM part s

are usedfrequently.

Frequent material

defects often lead

to high operating

cost and low

reliability.

An informal

process for qualifying the use

of non-OEM parts

exists, but is rarely

used. Non-OEM parts are used

frequently.

Frequent material

defects often lead

to high operating

cost and low

reliability.

An informal

process for qualifying the use

of non-OEM parts


used. OEM partsare preferentially

selected over non-

OEM parts. High

material cost may

exist and high

reliability exists.

The MOC process

for qualifying theuse of non-OEM

parts exists and is

regularly used.

OEM and non-OEM parts are of

high quality with

an incremental

cost difference.

Reduced material

cost and high

reliability exist.

The MOC process

for qualifying theuse of non-OEM

parts exists and is

regularly used.

OEM and non-OEM parts are of

high quality. Cost,

quality, and

delivery time

determine

sourcing for part.

Optimizedmaterial cost and

higher reliability

exist.

56 H - Supply

Chain and

Contractor

Management

Contractor skills,

performance,

availability, and

value to the

CommonMaintenance

Strategy are

assessed on a

periodic basis.

Contractor’s skills,

performance,

availability, and

value to the CMS

are not assessed.

Contractors are

expected to

include elements

of CMS in the

performance of their work, but

there is no

contractual

obligation to do

so. Contractor performance is

reviewed

infrequently.

The facility has

alliances with

contractors, and

have included

some CMS performance

elements in

contracts, which

may include

incentives.Meetings are

occasionally held

with contractors to

review

performance.

The facility has

alliances with

contractors, and

have included

CMS elements incontracts. Contract

performance goals

include CMS

elements and

incentives.Meetings are

occasionally held

with contractors to

review overall

performance.

The facility has

developed

meaningful

alliances with

contractors, andhave specific CMS

elements in

contracts.

Contracts are

performancebased, with

specific goals and

reward structures.

Frequent meetings

are held with

contractors to

review performance.

57 H - Supply

Chain and

Contractor Management

Contract resource

(materials and

labor) delivery isoptimized.

Material and labor

delays are

frequent. Hightransportation cost

for material

delivery isfrequently

experienced. No

formal process to

manage material

and labor delivery.

Material and labor

delays are


for material

delivery isfrequently

experienced.

Basic process

exists to manage

material and labor

delivery.

Maintenancetechnicians deliver

materials to work

location.

Material and labor

delays are less


for material

delivery is lessfrequent. Formal

process to manage

material and labor

delivery, but with

frequent

deviations.

Maintenancetechnicians deliver

materials to work

location.

Material and labor

delays and high

transportation costare infrequent.

Formal process

exists to managematerial and labor

delivery, but

deviations are rare.

Storehouse/vendor

personnel 'k it' and

deliver some

materials to work location.

Material and labor

delays and high

transportation costare infrequent.

Formal optimized

process exists tomanage material

and labor delivery

and deviations are

rare.

Storehouse/vendor

personnel 'k it' and

deliver allmaterials to work

location.

58 H - Supply

Chain andContractor

Management

Inventory levels

are efficientlymaintained by

providers withinthe approved

supply chain.

Inventory is

shared between

Frequent stockouts

occur. Inventorymin/max levels are

not established inCMMS. Work

order materials

planning not

integrated with

Stockouts are

frequent.Inventory

min/max levelsestablished for

some materials in

CMMS. Work

order materials

Stockouts are less

frequent.Inventory


most materials in

CMMS. Work

order materials

Stockouts are

infrequent.Inventory


most materials in

CMMS. Work

order materials

Stockouts are rare.

Inventorymin/max levels

established for allmaterials in

CMMS. Work

order materials

planning fully




Page 247 of 324



assets and

business units ina virtual

warehouse,

where

appropriate.

inventory levels.

No automaticreordering, vendor

stocking

arrangements, or

virtual warehouse.

planning verbally

communicated tostorehouse

personnel. No

automatic

reordering or virtual warehouse.

Limited vendor

stocking

arrangements.

planning verbally

communicated tostorehouse

personnel. L imited

automatic

reordering, virtualwarehouse, and

vendor stocking

arrangements.

planning

integrated withstorehouse

inventory

management

system. Extensiveautomatic

reordering, virtual

warehouse, and

vendor stocking.

integrated with

inventorymanagement

system. Extensive

automatic

reordering, virtualwarehouse, and

vendor stocking

arrangements.

59 H - Supply

Chain and

Contractor

Management

Contractor

staffing levels are

well managed

and optimized for

routine

maintenanceactivities. The

contractor short-

term and

medium-term

demand levelsare routinely

updated and

shared with the

contractors.

Contractor staffing

levels are poorly

managed (too few

or too many

personnel) .

Contractor demand levels are

not developed.

Low contractor

effectiveness and

efficiency exist.

Contractor staffing

levels are poorly

managed (too few

or too many

personnel) . Short-

term contractor demand levels are

rarely developed

and shared with

the contractors.

Low contractor effectiveness and

efficiency exist.

Contractor staffing

levels are

managed, but not

optimized. Short-

term contractor

demand levels aredeveloped and

shared, but

medium-term

contractor demand

levels areinfrequently

developed. Low

contractor

effectiveness and

efficiency exist.

Contractor staffing

levels are

managed, but not

fully optimized.

Short-term and

medium-termcontractor demand

levels are

developed and

shared. Medium

contractor effectiveness and

efficiency exist.

Contractor staffing

levels are managed

and fully

optimized per

forecasted

workloaddemands. Short-

term and medium-

term contractor

demand levels are

developed andshared. High

contractor

effectiveness and

efficiency exist.

60 H - Supply

Chain and

Contractor

Management

There is a formal

Supply Chain

Management

(SCM) strategy based on STARS

(Supply Chain

Management,

Transparency,

Aggregation,

Relationships,

Sector Strategies). The

business value of

SCM isrecognized and

understood by

key individuals in

the organization.

A formal SCM

strategy does not

exist.

A formal SCM

strategy does not

exist. The

business value of SCM is not clearly

understood by key

individuals. There

is no concern

about material or

contractor costs

and quality. Highmaterial and

contractor costs.

An informal SCM

strategy exists, but

is not routinely

reviewed. The business value of

SCM is somewhat

understood by key

individuals.

Competitive bids

and quality

assurance practi ces are

infrequently used

for the procurement of

materials and

contractors.

A formal SCM

strategy exists and

is routinely

reviewed, but notupdated. The

business value of

SCM is

understood by key

individuals.

Competitive bids

and qualityassurance

practices are

usually used in the procurement of

materials and

contractors.

A formal SCM

strategy exists and

is routinely

reviewed, updated,and aligned for

changing business

goals and

objectives.

Competitive bids

and quality

assurance ismandatory for

material and

contractor procurement.

61 H - Supply

Chain and

Contractor

Management

The strategic

short-term and

medium-term

performance

goals and

contractor

objectives are

based on industry best practices and

business priorities (CMS

objectives) and

are frequently

updated.

There are no

strategic

performance goals

or contractor

objectives based

on CMS objectives

incorporated into

businessrelationships.

Conflicts betweenthe facility and

contractor/vendors

are frequent.

Conflicts are

There are no

strategic

performance goals

or contractor

objectives based

on CMS objectives

incorporated into

businessrelationships.


contractor/vendors

are frequent and

are informally

Only short-term

strategic

performance goals

and contractor

objectives are

rarely updated

based on CMS

objectives.Conflicts between

the facility andcontractor/vendors

are less frequent.

Conflicts are

formally resolved.

Short-term and

medium-term

strategic

performance goals

and contractor

objectives are

updated based on

facility CMSobjectives.


contractor/vendors

are infrequent.

Conflicts are

Short-term and

medium-term

strategic

performance goals

and contractor

objectives are

frequently updated

based on faci lityCMS objectives.


contractor/vendors

rarely occur and

are quickly and




Page 248 of 324



Conflicts

between thefacility and

contractor/vendor

s are rare.

rarely resolved. resolved. formally resolved. formally resolved.

62 I - Measures of Effectiveness

(KPIs)/ Cost

Control

Maintenance andreliability

performance is

linked to

individual and

team rewards.


performance is not

linked to

individual or team

rewards.

High levelmaintenance and

reliability

indicators are

loosely associated

with individual or

team rewards.

Goals and rewards

are not clearly

defined.

High levelmaintenance and

reliability

indicators are

associated with

individual or team

rewards. Goals

and rewards are

defined, but are

normally not

linked to facility performance

indicators.


leadership develop

team and personal

reliability goals.

Performance is

reviewed by

leaders on an

irregular basis.

Rewards may be

linked to facility performance

indicators.


leadership develop

team and personal

goals in alignment

with facility

objectives.

Performance is

reviewed by

leaders on a

regular basis.Individual and

team rewards are

based on this

performance.


(KPIs)/ Cost

Control

Team leadersconstantly

evaluate the

current

performance

level and develop

an

implementation

plan to promote

progress towardsthe current

vision.

Team leaders donot evaluate the

current

performance level

or develop

implementation

plans.

Team leadersrarely evaluate the

current

performance level

or develop

implementation

plans.

Team leaders periodically

evaluate the

current

performance level

and develop

implementation

plans.

Team leadersfrequently

evaluate the

current

performance level

and develop

implementation

plans.

Team leadersconstantly

evaluate the

current

performance level

and develop

implementation

plans to promote

progress towards

the current vision.


(KPIs)/ Cost

Control

Maintenancecosts are well

tracked and

continually

optimized. Costmetrics for total

cost of equipment

ownership are

routinely

reviewed.

Maintenance costsare not well

tracked. There is

little effort to

control costs.

Overall,maintenance costs

are tracked, but

budgets are

arbitrarilydecreased or

increased based on

economic

pressures, with

little regard for

work required to

maintainoperational

performance.

There is a definedcost

optimization/contr

ol strategy, but it

is not wellcommunicated,

nor integrated with

other improvement

efforts.

Maintenance costsare tracked and

compared against

best-in-class

performers. Costoptimization

efforts are

primarily through

budget reduction

targets without

changing

workload.

Maintenance costsare tracked and

compared against

best-in-class

performers. Costoptimization

efforts are

integrated with

work optimization

and reliability

analysis efforts

(ESMP/RCM).


(KPIs)/ Cost

Control

Key PerformanceIndicators (KPIs)

are well defined,

comprehensive,

and routinely

monitored for performance gaps

and improvement

opportunities.

Information on

historical performance is

KPIs do not exist. Some KPIs exist, but a re not

formally or

routinely

monitored, and are

typically onlyagainst cost.

There is a formalKPI program, but

it is typically only

against cost and is

seldom used to

diagnose causesand make

improvements.

A formal KPI program exists,

but the results are

seldom used to

diagnose causes

and makeimprovements.

A formal andcomprehensive

KPI program

exists, where

measure are

trended and benchmarked, and

action is initiated

to close gaps and

capitalize on

improvementopportunities.










Page 252 of 324



realized.

76 K - Campaign

Maintenance

Campaign

maintenance

efforts aremonitored and

performance gaps

are addressedwith

improvement

plans.

Campaign

maintenance

efforts are notmonitored.

Performance gaps

are not identified.Improvement

plans are not

developed.

Campaign

maintenance

efforts areinformally and

infrequently

monitored.Performance gaps

are not identified.

Improvement

plans are not

developed.

Campaign

maintenance

efforts areformally

monitored by cost

and resourceutilization.

Performance gaps

are occasionally

identified.

Improvement

plans are

developed, but

rarely

implemented.

Campaign

maintenance

efforts areformally

monitored by cost,

resourceutilization, and

work backlog.

Performance gaps

are frequently

identified.

Improvement

plans are

developed and

occasionally

implemented.

Campaign

maintenance

efforts areformally

monitored by cost,

resourceutilization, and

work backlog.

Performance gaps

are infrequent.

Contractor level

and use of

centralized

campaign

maintenance team

optimized.

77 L - Capi tal

Value Processfor

Turnarounds

Turnarounds

(TARs) aresufficiently

planned and justified in

alignment with

business

objectives.

Turnarounds taken

based on historicalfrequencies or

equipmentdegradation.

Excessive non-

emergency

maintenance

deferred until the

TAR. Cost,

timing, duration,

and worklist are

not scrutinized

prior to the TAR. No future TAR

planning or post-

TAR audit.

Turnarounds taken


equipmentdegradation. The

TAR worklist is

reduced via

routine breakdown

corrective

maintenance

completed during

the run. No

formal

review/approval process for add-

ons. Planning for

current TAR only.

Turnarounds are

taken based onequipment

inspection needsand regulatory

policies. Major

jobs are planned

and critical path

determined three

months prior to

shutdown. Formal

review/approval

process for add-

ons. Informalfuture TAR

planning.

Turnaround

frequency andscope is optimized

based on businessenvironment and


The TAR worklist

is challenged and

locked out six

months prior to

shutdown. Formal

process for add-

ons. Documented

future TAR planning.

Turnaround

frequency andscope optimized

based on businessenvironment and


Worklist is locked

out 12 months

prior to shutdown.

Formal process for

add-ons. TAR

Challenge process

implemented.

Documented andupdated future

TAR planning.

78 L - Capi talValue Process

for

Turnarounds

Formal reliabilityanalyses

(ESMP/RCM,

PHA, RBI,

RCFA, etc.) are

routinely used to

assist in

identifying and

optimizing all

baseline/standard

turnaround(TAR) worklist

items. Worklist

reviews retain

reliability

analysisrecommended

activities.

No baseline/standard

TAR worklist has

been developed.

Reliability

analyses are not

used to assist in

identifying TAR

worklist.

Minimal baseline/standard

TAR worklist has

been developed

based on site and

vendor experience.

Reliability

analyses are not

used to assist in

identifying TAR

worklist.

Baseline/standardTAR worklist has

been most ly

developed based

on site and vendor

experience. Some

reliability analyses

are used to

identify baseline

activities. Results

of reliabilityanalyses are

frequently

eliminated during

TAR worklist

reviews.

Partially optimized baseline/standard

TAR worklist has

been mostly

developed based

on reliability

analysis with some

site and vendor

experience and

post-TAR reviews

used. Results of reliability analyses

are rarely

eliminated during

TAR worklist

reviews.

Optimized baseline/standard

TAR worklist has

been fully

developed.

Results of

reliability analysis,

in conjunction

with post-TAR

reviews, are used

extensively tofurther optimize

baseline workl ist.

79 L - Capi tal

Value Process

for

Turnarounds

Turnarounds

(TARs) are

sufficiently

planned in

Turnaround

material

procurement is not

formally planned.

Turnaround

material

procurement is

informally

Turnaround

material

procurement is

ineffectively

Turnaround

material

procurement is

effectively

Turnaround

material

procurement is

effectively




Page 253 of 324



advance to allow

for cost-effectivematerial

procurement and

efficient delivery.

Material deliverydoes not impact

TAR duration.

CVP-TAR is

used to plan TAR

materials.

All materials

ordered shortly before and during

TAR, frequently

impacting

duration. Cost andlogistics are not

scrutinized prior to

the TAR. No

CVP-TAR use.

planned. Most

materials arrive onsite just prior or

during TAR,

frequently

impacting durationand overall TAR

cost. No CVP-

TAR use.

planned resulting

in high materialcost and frequent

significant impact

on TAR duration.

Materials for major jobs arrive

on site prior to

TAR. Infrequent

and ineffective

CVP-TAR use.

planned resulting

in lower materialcosts and minor

TAR duration

impact. Most

materials are onsite prior to TAR.

Moderate use of

CVP-TAR.

planned resulting

in lowest materialcosts and no TAR

duration impact.

All materials are

on site prior toTAR. Effective

and efficient use

of CVP-TAR.

80 L - Capi tal

Value Process

for

Turnarounds

There is a formal

quality

assurance/control

(QA/QC)

program in placeto monitor the

quality of work,

repairs,

equipment, and

materials duringturnarounds

(TARs).

A formal QA/QC

program for TARs

does not exist.

Defects in

equipment andmaterials and

deficiencies in

repair work are

common. Defects

and deficienciesare not identified

or addressed.

An informal and

poorly

documented

QA/QC program

for TARs is used.Defects in

equipment and

materials and

deficiencies in

repair work arecommon. Defects

and deficiencies

are not quickly

identified and are

seldom addressed.

A formal QA/QC

program for TARs

is infrequently

used. Defects in


deficiencies in

repair work are

common. Defects

and deficienciesare not quickly

identified or

formally

addressed.

A formal QA/QC

program for TARs

is frequently used.

Defects in


deficiencies in

repair work are

rare. Defects and

deficiencies arenot quickly

identified, but are

formally

addressed.

A formal QA/QC

program for TARs

is frequently used.

Defects in


deficiencies in

repair work are

rare. Defects and

deficiencies arequickly identified

and formally

addressed.

81 L - Capi tal

Value Process

for

Turnarounds

Turnaround

teams develop an

outline of the

required rolesand

responsibilities

for the

turnaround and

select appropriate

people to fil l the

required roles.

No special roles

and

responsibilities are

created for shutdowns. All

preparation and

turnaround work is

completed in

addition to

existing work

responsibilities.

Very few

dedicated

positions are

created to handleturnaround work

needs.

Generic

turnaround roles

and

responsibilities aredeveloped, but not

used effectively

for most

turnarounds.

Roles are


developed for the

turnaround cycle.Some roles are not

clearly defined or

not adequately

staffed.

Specific roles and


clearly developed

for eachturnaround. Roles

are fully staffed

with appropriate

personnel.

82 L - Capi tal

Value Process

for

Turnarounds

The Safety

Management

Plan (SMP) is

thoroughly

developed for

each turnaround.

Safety performance is

excellent during

the turnaround.

Safety

Management Plans

are not developed

for the turnaround.

Safety

performance is

poor with severalfirst aid cases and

near miss

incidents. Safety

awareness is low.

Safety

Management Plans

are not developed

for the turnaround.

Safety

performance is fair

with poor safetyawareness by

involved

personnel.

Generic Safety

Management Plans

are developed, but

not in great detail

and rarely revised

from the previous

turnaround.Safety

performance is

acceptable with

moderate safety

awareness by all

involved

personnel.

Safety

Management Plans

are developed for

each turnaround.

Safety

performance is

good with highsafety awareness

by all involved

personnel.

Highly detailed

Safety

Management Plans

are developed for

each turnaround.

Safety

performance isexcellent with high

safety awareness

by all personnel .

83 L - Capi talValue Process

for

Turnarounds

Manpower (site,Centralized

Campaign

Maintenance

Team, and

contractor personnel)

Company andcontractor

personnel demand

is not forecast in

advance of TARs.

Personnel arescheduled during

Some company personnel demand

is forecast, but not

scheduled in

advance of TARs.

Little contractor demand planning

Only company personnel demand

is forecast and

scheduled in

advance of TARs.

Contractor personnel are

Manpower demand is forecast

in advance of

TARs. Personnel

are scheduled in

advance of TAR,resulting in low

Manpower demand is forecast

well in advance of

TARs. Personnel

are scheduled well

in advance of TAR, resulting in




Page 254 of 324



demand is

forecast for turnarounds

(TARs).

Resources are

effectivelymanaged.

the TAR, resulting

in high labor costs, poor u tiliza tion,

significant

understaffing, and

significant impactson TAR duration.

prior to TAR,

resulting in highlabor costs, low

utilization,

significant staffing

problems, andmajor impact on

TAR schedule and

duration.

scheduled just

prior to TAR,resulting in high

labor costs, low

utilization,

significant staffing problems, and

major impact on

TAR schedule and

duration.

labor costs, high

utilization, minor staffing problems,

and minor impact

on TAR schedule

and duration.

lowest labor costs,

high utilization, nostaffing problems,

and no impact on

TAR schedule or

duration.

84 L - Capi tal

Value Process

for

Turnarounds

The Turnaround

Execution Plan

(TEP) is

thoroughly

developed for

each turnaround.Shutdown

activities, work

execution,

workscope

change procedures, and

start-up plans are

included within

the TEP to ensure

high-efficiencyturnarounds.

A Turnaround

Execution Plan is

not developed.

Turnaround

duration often

exceeds expected plan. Excessive

add-on work.

Poor efficiency in

work execution.

A generic

Turnaround

Execution Plan is

developed, but

with little detail

and little changefrom previous

TEPs.

Turnarounds

frequently extend

beyond the p landue to poor

efficiency on work

execution

regarding

materials, labor,and permit

coordination.

A generic

Turnaround

Execution Plan is

developed.

Shutdown and

start-up activitiesare specified, but

work execution

efficiency is poor.

There is an

informal processto approve add-on

work, but is

frequently

bypassed.

A specific

Turnaround

Execution Plan is

developed for each

turnaround.

Shutdown andstart-up activities

are highly

detailed. Work

execution

efficiency is good.There is a formal

process to approve

add-on work,

which is

infrequently bypassed.

A thorough

Turnaround

Execution Plan is

developed for each

turnaround.

Shutdown andstart-up activities

are highly

detailed. Work

execution

efficiency isexcellent. There is

a formal process to

approve add-on

work, which is

never bypassed.

85 L - Capi tal

Value Processfor

Turnarounds

Turnaround costs

are estimated,tracked, and kept

within the

budge t.

No turnaround

budget is created. No turnaround

cost estimates are

developed. Costs

are reported, but

not used to

develop future

turnaround budgets.

A turnaround

budget is created, but is not used to

restrict the

spending during

the turnaround.

Turnaround cost

estimates are not

developed prior tothe turnaround.

Costs are reported

and used to create budgets for future

turnarounds.

A turnaround

budget is created based on historical

spending levels. A

preliminary cost

estimate is

developed prior to

the turnaround.

Costs are trackedduring the

turnaround, but

work is rarelyrestricted due to

turnaround budget

constraints.

A turnaround

budget is created based on

preliminary cost

estimates

developed prior to

the turnaround.

Costs are tracked

during theturnaround. Work

is restricted to

maintain costswithin the

turnaround budget.

Add-on work is

formally approved.

A turnaround

budget is created based on detailed

cost estimates

developed early in

the turnaround

cycle. Costs are

tracked during the

turnaround. Work is restricted to

maintain costs

within the budget.Add-on work is

formally approved.

86 M -

Knowledge

Management

There is a

standard for the

amount and

quality of

information

captured in the

Computerized

MaintenanceManagement

System (CMMS).Information

includes work

history,

equipment

No standard for

minimum level of

information stored

in the CMMS.

Maintenance work

history is rarely

captured. Very

limitedinformation on

inventory. Nodetails on specific

pieces of

equipment or

equipment

No standard for

minimum level of

information stored

in the CMMS.

Some work history

is written in

equipment files,

but not included inCMMS or other

accessiblecomputer

database. Limited

information on

inventory and

Informal standard

for minimum level

of information

stored in the

CMMS. Work

history captured

for corrective

work orders, butnot for proactive

maintenance work orders. Work

history captured in

CMMS is poor.

Information exists

Standard for

minimum level of

information stored

in the CMMS.

Work history

captured for most

proac tive and

correctivemaintenance work

orders. Detailedinformation exists

on inventory and

all equipment.

ESMPs exist for

Standard for

minimum level of

information stored

in the CMMS.

Work history is

captured for all

proac tive and

correctivemaintenance work

orders. Detailedinformation exists

on inventory and

all equipment.

ESMPs exist for




Page 255 of 324



specifications,

inventory details,equipment

specific

maintenance

plans, etc.

components. specific pieces of

equipment.

for inventory and

equipment.

most critical

equipment.

all equipment.

87 M -

Knowledge

Management

Employees have

received

classroom and

practical training

in each of the

CMS processes

and tools. They

apply the training

to processes they

are directlyinvolved in and

are conversant in

the other

processes.

Employees have

not received

classroom and

practica l training

in each of the

CMS processes.

Some employees

have received

classroom and

practical training

in some of the

CMS processes.

They apply the

training to the

processes they are

directly involvedin, but are

typically not

conversant in the

other processes.

Some employees

have received

classroom and

practical training

in each of the

CMS processes.

They apply the

training to the

processes they are

directly involvedin and are vaguely

conversant in the

other processes.

Many employees

have received

classroom and

practical training

in each of the

CMS processes.

They apply the

training to the

processes they are

directly involvedin and are

somewhat

conversant in the

other processes.

Employees have

received

appropriate

classroom and

practical training

in each of the

CMS processes.

They apply the

training to all of

the processes theyare directly

involved in and

are conversant in

the other

processes.88 M -

Knowledge

Management

The organization

shares

maintenance and

reliability lessons

learned via

networking and

benchmarking

activities inside

and outside their Business Unit.

These lessons

learned are used

in new project

design

specifications per

the Capital ValueProcess (CVP).

Sharing of

maintenance and

reliability lessons

learned is not

promoted.

Sharing of

maintenance and

reliability lessons

learned inside and

outside the

business unit is

sporadic. No

policy or uniform

system is in placeto disseminate

lessons learned.

Sharing of

maintenance and

reliability lessons

learned inside and

outside the

business unit is

voluntary.

Informal policies

and systems are in place to

disseminate

lessons learned,

but are rarely

incorporated into

new project

designs.

Sharing of

maintenance and

reliability lessons

learned inside and

outside the

business unit is

encouraged.

Formal systems

are in place todisseminate

lessons learned

(Intranet, reports,

etc.), but are

seldom

incorporated into

new projectdesigns.

Sharing of

maintenance and

reliability lessons

learned inside and

outside the

business unit is an

expectation.

Formal systems

are in place todisseminate

lessons learned

and are frequently

incorporated into

new project

designs.

89 M -

Knowledge

Management

Personnel are

exchanged

between

operational areas

to promote self-

confidence and breadth of

experience.

There is no

personnel

exchange program.

Personnel

exchange is rare.

There is no formal

policy and there

are no defined

objectives outsidethe core job

requirements.

A personnel

exchange policy

exists, but is

performed on an

"as needed" or

voluntary basis.Generalized

expectations are

communicated, but

not monitored.

There is a

formalized plan to

exchange

personnel between

operational areas.

Personal goals and business

objectives may be

identified to

measure personnel

contributions. A

general personnel

skills inventory is

maintained.

There is an active

and formalized

plan to exchange

personnel between

operational areas.

Personal goals and business

objectives have

been identified to

measure and

reward personnel

contributions. A

specific personnel

skills inventory ismaintained.

90 M -

Knowledge

Management

Relevant

profess ional

development is

encouraged andavailable for

There is no formal

program for

profess ional

development.

There is no formal

program, but

employees may

request training onan as-needed

There is a

profess ional

development

policy, but it isself-directed and is

There is a

profess ional

development

policy, but it isself-directed and

The Business Unit

supports

profess ional

development byallocating time and




Page 256 of 324



those working in

the maintenanceand reliability

community.

basis, with limited

support frommanagement.

not part of career-

path planningfunction.

may be included in

career path planning.

resources for

training and jobenrichment

programs. Formal

policies define

scope and criteriato qualify for

assistance.

Development is an

integral part of

career path

planning.

91 M -

Knowledge

Management

Equipment

operating

parameters are

established,communicated,

and known by the

operators.

Proper operating

parameters are not

communicated or

well-known byoperators.

Historical

operations tend to

guide current

operating parameters.

Proper operating

parameters are

established, but

are not adhered to by the operators.

They are typically

limited to general

throughput targets

and productquality

specifications.

Specific operating

guidelines are

established for

each piece of equipment and are

available in a

central location.

No formal process

to assureadherence to

operating

guidelines.

Specific operating

guidelines are

established for


available in a

central location.

Guidelines are

posted on someequipment in the

field. An informal

process exists to

ensure compliance

with guidelines.

Specific operating

guidelines are

established for


available in a

central location.

Critical operating

limits and procedures are

posted on field

instruments and

equipment. A

formal processexists to ensure

compliance.

92 N -

ContinuousImprovement

Recommendation

s to improveavailability are

tracked through

resolution.

Recommendations

to improveavailability are

seldom tracked

through resolution.

Individual lists of

recommendationsare maintained for

each source of the

recommendation

(e.g. RCFA, idea,

Hazop,

ESMP/RCM, etc.).

Status is not well published or

available.

Approval for recommendations

is informal and

inconsistent.

Individual lists of

recommendationsare maintained for

each source of the

recommendation.

Status of

recommendations

are available to all

personnel.Approval/rejection

for

recommendationsis informal and

may be based on

defined criteria.

Single list

maintained for allsite

recommendations

regardless of

source. Status of

recommendations

is available to all

personnel. Aformal process

exists for approval

or rejection for recommendations

against a loosely

defined set of

criteria.

Single list

maintained for allsite

recommendations

regardless of

source. Status is

regularly

published and

updated byresponsible

personnel. A

formal processexists for approval

or rejection of

recommendations

based on well

defined criteria.

93 N -

Continuous

Improvement

Team Leaders are

highly visible and

actively involved

in the continuous

improvement

process. They

trend requiredKPIs, join RCFA

studies andEquipment

Improvement

Teams, promote

planning and

Team leaders are

not actively

involved in the

continuous

improvement

process.

Team leaders are

seldom visible and

marginally support

the continuous

improvement

process. They are

vaguely aware of some KPIs,

minimally supportRCFA studies and

Equipment

Improvement

Teams, planning

Team leaders are

somewhat visible

and generally

support the

continuous

improvement

process. They areaware of required

KPIs, supportRCFA studies and

Equipment

Improvement

Teams, encourage

Team leaders are

usually visible and

actively support in

the continuous

improvement

process. They are

monitoringrequired KPIs,

sponsoring RCFAstudies and

Equipment

Improvement

Teams,

Team leaders are

highly visible and

actively involved

in the continuous

improvement

process. They are

trending requiredKPIs, joining

RCFA studies andEquipment

Improvement

Teams, promoting

planning and




Page 257 of 324



scheduling,

mentor others,etc.

and scheduling,

etc.

planning and

scheduling,coaching, etc.

encouraging

planning andscheduling,

mentoring, etc.

scheduling,

mentoring, etc.

94 N -


Management

commitsadequate time to

do analysis of

past asset

performance.

No time is allotted

to do performanceanalysis.

Some time is

given, butnormally only

after a major

failure or event.

Management

commits time for routine

performance

analysis only for

areas and assets

which have

regulatory or

corporate

requirements for

such monitoring.

Time is allocated

for routinemonitoring of past

asset performance

and each

maintenance/engin

eering discipline is

responsible for the

method and

conduct of such

analysis.

Time is allocated

for routinemonitoring of

performance, and

resources are

committed to do

so with cross-

functional teams,

utilizing a

common, formal

process (e .g.:

RCFA).

95 N -

Continuous

Improvement

Management

commits

adequate time to

do analysis of

programmatic performance.

Continuous

Improvement

processes and

tools do not exist.

Continuous

Improvement

processes and

tools exist, but are

not formalized or reviewed/updated

regularly.

Formalized

Continuous

Improvement

processes and

tools exist, but areonly

reviewed/updated

on an ad-hoc basis.

Formalized

Continuous

Improvement

processes and

tools exist, butonly some are

reviewed/updated

on a routine basis.

Formalized

Continuous

Improvement

processes and

tools exist, and areroutinely

reviewed/updated

through a well-

defined process.

96 N -


Management

supportscontinuous

improvement

recommendations

(upgrades,

replacing bad

actors, RCFA,ESMP).

Management does

not allocateresources to make

improvements.

Management

supportsimprovements

only after

significant

events/losses.

Management


only during

favorable

economic times.

Management


only when the cost

benefit provides

large, short term

return.

Management

supportsimprovement

recommendations

where the life-

cycle costs show

adequate return

against a welldefined standard.

97 N -

Continuous

Improvement

Each manager

reviews and

assesses

production losses

from a large

variety of points

of view, such asEconomic,

Maintenance,

Statistical,

Engineering,

Operations, and

Business.

Losses are not

assessed regularly

by managers.

Managers assess

losses against only

1 of these points of

view.

Managers assess

losses against only

2 or 3 of these

points of view.

Managers assess

losses from 4 or 5

these points of

view.

Managers always

assess losses from

all 6 points of

view.

98 N -

Continuous

Improvement

All production

data, chokes,

failures, short

repairs, PM

activity, and allother

maintenanceevents are

examined for

improvement

opportunities.

These events are

never examined.

These events are

only examined if

they cause a

significant

production loss or incident.

Some of these

events are

routinely

examined, but

typically for areasof cost reduction

only.

The majority of

these events are

examined, but not

always routinely

or formally.

All of these events

are examined

routinely, through

a formal process to

identify areas for economic, safety,

environmental,and production

improvement.




Page 258 of 324



99 N -


The proactive

maintenance program is

optimized on a

routine basis.

Some activitiesare either

eliminated or the

frequency

extended based

on "as found/as

left" historical

data evaluated ina living program.

It is unknown of

the proactivemaintenance

program uses the

most applicable

and cost-effectiveapproaches to

managing

operational risk.

Proactive

maintenance program exists,

but there is no

living program on

the methodologyused to create the

original program.

No formal living

program on the proactive

maintenance

approach that

created theoriginal proactive

maintenance

program. Certain

elements of the

program have been

updated as new

technologies or cost-reduction

initiatives are

implemented.

A proactive

maintenance living program exists,

but is performed

irregularly or less

frequently thanonce every two

years. The cost

and effectiveness

of each task are

reviewed and there

is an effort to

eliminate non-value-added

activities.

A formal proactive

maintenance living program exists and

is performed at

least once every

two years. Thecost and

effectiveness of

each task are

reviewed and there

is an aggressive

effort to eliminate

non-value-addedactivities.

100 N -

Continuous

Improvement

The maintenance

program is

developed using

reliability

analysis tools(ESMP/RCM/RC

FA/RBI).

Proactive

maintenance

activities are justi fied and

optimized for all

operating

equipment.

Virtually all

maintenance

activities are

reactive.

Some proactive

activity exists

based on reaction

to past failures, but

it has littledocumented basis,

and it is generally

unknown if it is

being effective.

Proactive activity

exists on an

equipment class

basis. Little

consideration isgiven for

equipment

operational

context, criticality,

and preventingspecific dominant

failure

mechanisms

within that

operational

context.

Some reliability

analysis ((e.g.

ESMP/RCM) has

been performed to

focus and optimizemaintenance

activity, but it has

not been applied to

a majority of

assets, or it is notkept current via a

"living program".

Reliability

analysis

(ESMP/RCM) has

been applied to the

majority of operating assets to

clearly define,

justify, and

optimize

maintenanceactivities. The

analysis is also

kept current via a

"living program".

The Peer-Assist Assessment focuses on the particular topic or topics found

to be deficient in a self assessment. The self assessment form is below.The peer-assist assessment uses the applicable topics from the formal

assessment to complete the evaluation.




Page 259 of 324


SELF ASSESSMENT# Topic Practice Level 1 Level 2 Level 3 Level 4 Level 5

1 A - Leadership

and

Organization

Leaders develop a

clear maintenance

and reliabilitystrategy with

highly visible andregularly updated

performance

indicators, goals,

and objectives.

There is no

maintenance and

reliability strategy.

An informal

maintenance and

reliability strategyexists. It is not

used to guideleaders in decision

making. There are

few, if any,

performance

indicators

associated with the

strategy.

Employees are

generally not

aware of it.

A maintenance

and reliability

strategy exists.The strategy and

goals are not infull-alignment

with plant

goals/CMS.

Leaders are aware

of the strategy, but

do not share with

employees and

contractors or

consider it in daily

planning.

A defined

maintenance and

reliability strategyexists. The

strategy/goals aremostly in

alignment with

plant goals/CMS.

Leaders are aware

of strategy, but it

is not consistently

shared with

employees/contrac

tors. The strategy

is considered in

work plans.

A well defined and

clearly understood


exists. Thestrategy is in direct

alignment with

plant goals/CMS.

Performance

metrics have been

identified and

communicated to

all employees and

contractors.

2 A - Leadership

and

Organization

Each leader’s

performance is

assessed againsttheir personal

annual objectives

and based on

feedback from line

management,

peers, and others

in the Business

Unit. (i.e.

myPerformance)

There is no

performance

criteria for leaders.

Leader’s

performance is

assessed againsthigh level

(facility-wide)

criteria and does

not include

personal

objectives,

delivery of CMS

objectives, or

peer/subordinate

feedback.

Leader's

performance is

reviewed on aninfrequent basis.

Includes some

personal goals and

delivery of CMS

objectives.

Feedback from

line management,

peers, and others

in the business

unit areoccasionally an

input to the

performance

assessment.

Leader’s

performance is

reviewed on a periodic basis.

Includes some

personal goals and

delivery of CMS

objectives.

Feedback from

line management,

peers, and others

in the business

unit are one of theinputs to the

performance

assessment.

Leader’s

performance,

including personalobjectives and

delivery of CMS

objectives, is

reviewed on a

frequent basis.

Feedback from

line management,

peers and others in

the business unit

are primary inputsto the performance

assessment.

3 A - Leadershipand

Organization

Organizationalcapabilities have

been redesigned to

efficiently execute

CMS processes.

Functions have

been realigned to

break down

departmental

barriers. Work processes have

been reengineered.

Communication

between groups

has been

streamlined.

Organizationalcapabilities and

functions have not

been redesigned to

accommodate

desired change.

Feworganizational

capabilities and

functions have

been redesigned to

accommodate

desired change.

Someorganizational

capabilities have

been redesigned to

accommodate

desired change.

Some affected

functions have

been realigned to

minimizedepartmental

barriers. Some

work processes

may have been

revised.

Manyorganizational

capabilities have

been redesigned to

efficiently execute

CMS processes.

Several functions

have been

realigned to

minimizedepartmental

barriers. Common

approval and work

processes have

been modified.

Communications

have improved.

Organizationalcapabilities have

been redesigned to

efficiently execute

CMS processes.

Functions have

been realigned to

break down

departmental

barriers. Work processes have

been reengineered.

Communications

between groups

has been

streamlined.

4 A - Leadership

and

Organization

Workforce

expectations are

communicated to

personnel v ia the

myPerformance

There is a general

lack of clarity of

job expectations.

CMS objectives

are not included in

There is some

confusion or lack

of clarity of some

expectations.

CMS objectives

There is a clear

expectation of job

performance, but

little sense of

empowerment to

There is a clear

expectation of job

performance, and

most staff feel

empowered to

All staff

understand what is

expected and are

empowered to

contribute to their




Page 260 of 324



system. Limits of

authority andaccountability are

clearly defined and

understood.

the


are not included in

themyPerformance

system.

achieve it. CMS

objectives areincluded for

leaders only in the

myPerformance

system.

improve. CMS

objectives areincluded for most

personnel in the

myPerformance

system.

full potential. All

staff strive toimprove. CMS

objectives are

included for all

personnel in themyPerformance

system.

5 B - Change

Management

Team leaders are

focused on the

company’s vision,

goals, and the

delivery of the

CMS objectives.

Leaders are

empowered andheld accountable

for managing

change.

Team leaders are

not focused on the

company’s vision,

goals, or the CMS

objectives. They

are not held

accountable for

managing changes.

Team leaders are

marginally

focused on the

company’s vision,

goals, and delivery

of the CMS


not a major activity. There is

little

accountability for

managing change.

Team leaders are

generally focused

on the company’s

vision, goals, and

delivery of CMS


not a primary

responsibility.They have some

input to ensure

roles and


defined andadhered to

throughout the

organization.

Team leaders have

high awareness of

the company’s

vision, goals, and

delivery of the

CMS objectives.

Leaders have

received someformal training in

change

management tools

and processes and

are generally heldaccountable for

managing change.

Team leaders are

focused on the

company’s vision,

goals, and delivery

of the CMS

objectives.

Leaders have

received formaltraining in change

management tools

and processes and

are held

accountable for managing the

necessary change.

6 B - Change

Management

Key Performance

Indicators (KPIs)

have been

developed to

monitor the

progress on thechange

management

process. Targets

have been

established,

measured, trended,

and reported to theentire

organization.

Feedback is usedto keep change

progress on target.

KPIs have not

been created to

monitor the

change

management

process.

A few KPIs have

been created to

monitor the

change

management

process.Generalized

targets may be

established,

measured, trended,

and reported on a

limited basis.

Feedback isminimal.

Several KPIs have

been created to

monitor the

change

management

process. Broadtargets have been

established,

measured, trended,

and reported to

leaders in the

organization.

Some feedback isused to track

change progress.

A comprehensive

list of KPIs has

been created to

monitor the

change

management process. High

level targets have

been established,

measured, trended,

and reported to the

organization.

Most feedback isused to track

change progress

and makecorrections.

A comprehensive

list of KPIs drive

the change

management

program. Targets

have beenestablished,

measured, trended,

and reported to the

entire

organization.

Feedback is used

to keep change progress on target.

7 B - Change

Management

Leaders enable


and keep

employees

informed

regarding the

rationale and

details behind the

change, the facts(market demands,

competition), howeach person is

affected, and

expectations for

each person.

Leaders do not

practice two-waycommunication

and do not keep

employees

informed.

Leaders practice

limited two-waycommunication

and sporadically

keep employees

informed

regarding the

rationale and

details behind the

change.

Leaders facilitate

scheduled two-way

communication

and periodically

inform employees

regarding the

rationale and

general details of

the change, somefacts about how

each person isaffected, and the

general

expectations for

each person.

Leaders enable

formal two-waycommunication

and keep

employees

periodically

informed

regarding the

rationale and

details behind thechange, the facts


each person is

affected, and the

general

Leaders enable


and keep

employees

frequently

informed

regarding the

rationale and

details behind thechange, the facts


each person is

affected, and the

specific




Page 261 of 324



expectations for

each person.

expectations for

each person.

8 C - Teamwork

(internal and

externalrelationships)

Operators are

directly involved

in equipmentmaintenance.

Poor relations

between

operations andmaintenance

departments.

Operators do veryfew basic care

activities

(housekeeping,

inspection,

lubrication needs,

etc.) or condition

monitoring tasks.

Operators perform

minimum amount

of basic care andcondition

monitoring

activities.Maintenance of

equipment seen as

responsibility of

maintenance

department.

Operators perform

basic care and

conditionmonitoring

activities.

Operators view basic care tasks as

responsibility of

operations.

Operators may

perform some low-

skill maintenance

activities, but view

maintenance as

primarily

responsible.

Operators perform

basic care and

conditionmonitoring

activities.

Operatorsunderstand value

of preventing and

predic ting

equipment failure.

Operations

perform some low-

skill maintenance

activities as part of

their

responsibilities.

Operators perform

basic care and

conditionmonitoring

activities.

Operatorsunderstand value

of preventing and

predic ting

equipment failure.

Operators perform

or assist in all or

most routine

maintenance

activities.

9 C - Teamwork


relationships)

Cross-functional

team meetings areroutinely held to

discuss asset and business objective

issues. Meetings

include agendas,

specified leaders,

action items,

meeting minutes,

etc.

Cross-functional

team meetings todiscuss business

objectives are rareor non-existent.

Cross-functional

meetings areirregularly held to

discuss businessobjectives. Other

topics take

precedence.

Structured agendas

are not developed.

Meeting

facilitation does

not rotate. Action

items are not

developed.Minutes are not

taken.

Cross-functional


discuss businessobjectives.

Structured agendas

are rarely

distributed prior to

the meeting.

Meeting

facilitation seldom

rotates among

participants.

Action items arereviewed.

Minutes are rarely

taken.

Cross-functional



Structured agendas

are usually


the meeting.

Meeting

facilitation rotates

between a few

participants.

Action items arereviewed.

Minutes are rarely

taken.

Cross-functional



Structured agendas

are always


the meeting.

Meeting

facilitation rotates

to all participants.

Action items and

meeting minutesare reviewed.

10 D - Planningand

Scheduling /

Work Control

Maintenance work is properly

planned, including

estimates for

skills, materials,

tools, and

prioritiza tion to

reduce delays.

No formalmaintenance

planning process .

No est imates are

created for labor

and materials for

proactive or

corrective

maintenance work.

Work order list

may not bemaintained in

CMMS. No

dedicated

resources for

planning funct ion.

Basic maintenance planning process .

CMMS is used to

estimate skills,

tools, and

materials needed

to complete job for

corrective

maintenance only.

Inconsistent work

order priori tization. No

dedicated

resources for

planning funct ion.

Formalmaintenance

planning process

exists. CMMS is

used to estimate

skills, tools, and

materials needed

for some

maintenance work.

Inconsistent work

order priorit ization .

Little dedicated

resources for

planning funct ion.

Formalmaintenance

planning process .

CMMS is used to

estimate skills,

tools, and

materials needed

for most

maintenance work.

Work order

prioritizationmatrix developed

based on

equipment risk

(RIME).

Dedicatedresource for

planning funct ion.

Formalmaintenance

planning process .

CMMS is used to

plan greater than

95% of

maintenance work.

Work order

prioritization

matrix (RIME)

used. Full-time,dedicated,

formally trained

resource for

planning funct ion.

11 D - Planning

and

Scheduling /

Work Control

There is a high

level of

maintenance

efficiency. The

Maintenance

planning and

scheduling


The maintenance

work process is

inefficient in that

personnel often

A routine

maintenance work

process exists, but

is often not

There is a formal

routine

maintenance work

process which is

There is a formal

routine

maintenance work

process which is




Page 262 of 324



planning and

scheduling effortis highly effective.

tracked and is

unknown.

have to wait for

parts , permits andtools. There is

little automation to

the process.

Planning andscheduling


tracked, nor is

improvement a

driving force.

formally followed

or sufficientlyautomated to be

efficient. Workers

seldom complete

more than one task per day. Tracked

maintenance

backlog is

typically

addressed via

overtime or

deferral.

followed.

Maintenanceutilization is above

50%. Planning

and scheduling

effectiveness istracked, but efforts

to improve are

seldom initiated.

followed.

Maintenanceutilization is

greater than 75%.

Planning and

schedulingeffectiveness is

tracked. Efforts to

improve are

initiated based on

observed

performance gaps

vs. targets.

12 D - Planning

and

Scheduling /Work Control

Integrated high

level and long-

term planning is performed and

regularly updated.

These plans direct

daily maintenance

activities.

No integrated

long-term

planning iscompleted.

Long-term

planning is limited

to the upcomingturnaround.

Long-term

planning has a

one-year forecast, but is rarely

reviewed and

updated.

Long-term

planning extends

to two years andthe next two

turnarounds.

Long-term plans

are updated

annually.

Long-term

planning extends

to five years andthe next two

turnarounds.

Long-term plans

are updated

annually.13 E - Equipment

Reliability

Maintenance and

reliability

management

systems and tools

(e.g. CMMS,

ESMP/RCM,

RCFA, EDS, Data

Analysis tools,

MaterialsManagement

system, etc.) are

developed,

documented,

implemented, and

supported

throughout theorganization.

Maintenance and

reliability

management

systems are not

being used.

Some of these

systems exist, but

are not fully

utilized or

supported. They

are used to

document and

manage

maintenance on asporadic basis.

Some of these

systems exist and

are fully utilized

and supported.

Personnel are

familiar with the

tools they use and

use them to

document andmanage

maintenance on a

regular basis.

Most of these

systems exist and

are fully utilized

and supported.

Key maintenance

and reliability

personnel are

familiar with some

of the toolsavailable and use

them to document

and manage

maintenance on a

regular basis.

A comprehensive

integrated suite of

systems exists and

is fully utilized

and supported. All

maintenance and

reliability

personnel are

familiar with all of the tools available

and use them to

document and

manage

maintenance on a

regular basis.

14 E - Equipment

Reliability

The proactive

maintenance

program is

developed and

instituted per

recommendationsfrom reliability

analysis

(ESMP/RCM,

RBI, MI).

(Proactive

maintenance

includes condition

monitoring, predictive and

preventivemaintenance, and

function testing.)

Little or no

proact ive

maintenance

exists, only

reactive

maintenance. Any preventive

maintenance or

condition

monitoring

activities that are

completed are

seldom

documented anddid not originate

from reliabilityanalysis.

Proactive

maintenance

program is limited

to preventive

(time-based repair

and replacementactivities)

maintenance.

Condition

monitoring is

limited to operator

rounds that are not

formalized in a

database and didnot originate from


Proactive

maintenance

program has

preventive and

predict ive

maintenance(vibration

monitoring,

thermography, oil

analysis, etc.)

tasks, which are

assigned within a

specific equipment

type withoutregard to risk,

failure history, or reliability analysis.

Proactive

maintenance

program includes

preventive and

predict ive

maintenance tasks,which are assigned

to equipment

based on

equipment risk

(likelihood and

consequence of

failure), dominant

failuremechanisms, and

reliability analysisrecommendations.

Proactive

maintenance

program

emphasizes

condition

monitoring and predict ive

maintenance over

time-based

intrusive tasks.

Proactive tasks are

assigned based on

equipment risk,

failure history,dominant failure

mechanisms, andreliability analysis.




Page 263 of 324



15 F - Technology

Utilization

Condition

monitoring (and predictive

maintenance tasks)

results are

collected,analyzed, and used

to make decisions

on the scope of

equipment repairs

and overhauls?

Very little

conditionmonitoring is

conducted. Few

results are used to

make decisions onequipment.

Some condition

monitoring data iscollected on round

sheets and the

information is

manually reviewed by operating

personnel.

Decisions are

made on this

information only if

readings are out-

of-range.

A formal condition


maintenance

program exists


Data is manually

collected and some

may be entered

into a database.

Data is used to

make decisions onequipment based

on out-of-range

readings.

A formal condition


maintenance

program exists


Data is collected

on handheld

computers.

Information is

occasionally

reviewed and usedto make decisions

on equipment.

A formal condition


maintenance

program exists


Data is collected

on handheld

computers.

Information is

reviewed

frequently andused to make

decisions based on

out-of-range

readings and

trends.

16 F - Technology

Utilization

Training is

provided on


predictive

maintenance

techniques to

maintenance personnel. Their

competency is

assessed for each

technique.

Training for

condition


maintenance

techniques exists,

but is not provided

to operating andmaintenance

personnel.

Competency is not

assessed.

Limited classroom

and no on-going

training for condition

monitoring and

predict ive

maintenance


operating and

maintenance

personnel.

Training is not

determined by a


assessed.

Classroom and

limited on-going

training for condition

monitoring and

predict ive

maintenance


operating and

maintenance

personnel.

Training is

determined by a


formally assessed.

Classroom and on-

going training for


predict ive

maintenance

techniques is

provided tooperating and

maintenance

personnel.

Training is

determined by a

needs assessment.

Competency isformally, but

infrequently,

assessed.

Extensive

classroom and on-

going training for condition

monitoring and

predict ive

maintenance


operating and

maintenance

personnel.

Training is

determined by a

needs assessment.Competency is

frequently and

formally assessed.

17 G - MaterialsManagement

Inventory levelsare optimized

based on reliability

analysis(ESMP/RCM).

Inventory levelsare not aligned

with reliability

analysis. Somevendor and

Original

Equipment

Manufacturer

(OEM) stocking

recommendations

are typically used.Stockouts are

frequent for some

material.Inventory turns are

low for some.


with reliability

analysis.Vendor/OEM and

maintenance

department

recommendations

are used to set

inventory

minimum/maximum levels.

Stockouts are

frequent for somematerial.

Inventory turns arelow for some.


with reliability

analysis.Vendor/OEM and

maintenance

department

recommend

min/max levels.

Inventory usage is

tracked andmax/min levels are

adjusted by

storehouse.Vendor alliances

created, but notused extensively.

Inventory levelsare not in full-

alignment with

reliability analysis.Inventory levels

are optimized by

using historical

usage and

inventory analysis.

Moderate use of

vendor alliancesand just-in-time

delivery. Multi-

site stockingconsidered.

Inventory levelsare in full

alignment with

reliability analysis.Inventory levels

are optimal.

Extensive use of

vendor alliances

and just-in-time

delivery. Multi-

site sharedstocking where

appropriate.

18 G - MaterialsManagement

Inventory isaccurately

accounted for.

Inventory may belisted in

spreadsheet format

on a single

computer. No

Inventory ismanaged in

spreadsheet

format. Physical

verification of

Inventory ismanaged in

Computerized

Maintenance

Management

Inventory ismanaged on

CMMS.

Computer

inventory counts

Inventory ismanaged on

CMMS.

Computer

inventory counts




Page 264 of 324



physical

verification of inventory.

inventory is

manually enteredin the computer.

System (CMMS).

Computer inventory counts

are automatic.

Physical

verification of inventory counts

are conducted

periodically.

are automatic.

Physicalverification of

inventory counts

are conducted

infrequently.

are automatic

using bar-codetechnology.

Physical

verification of

inventory countsare no longer

required.

19 G - Materials

Management

Quality parts are

used when

performing

repairs. An MOC

(Management of

Change) process

applied when non-OEM (Original

Equipment

Manufacturer)

materials are used.

A process for

qualifying the use

of non-OEM parts

does not exist.

Non-OEM parts

are used

frequently.Frequent material

defects often lead

to high operating

cost and low

reliability.

An informal

process for

qualifying the use

of non-OEM parts


used. Non-OEM

parts are usedfrequently.

Frequent material

defects often lead

to high operating

cost and lowreliability.

An informal

process for

qualifying the use

of non-OEM parts


used. OEM parts

are preferentiallyselected over non-

OEM parts. High

material cost may

exist and high

reliability exists.

The MOC process

for qualifying the

use of non-OEM

parts exists and is

regularly used.

OEM and non-

OEM parts are of high quality with

an incremental

cost difference.

Reduced material

cost and highreliability exist.

The MOC process

for qualifying the

use of non-OEM

parts exists and is

regularly used.

OEM and non-

OEM parts are of high quality. Cost,

quality, and

delivery time

determine

sourcing for part.Optimized

material cost and

higher reliability

exist.

20 H - Supply

Chain and

Contractor

Management

Contractor staffing

levels are well

managed and

optimized for

routinemaintenance

activities. The

contractor short-

term and medium-

term demand

levels are routinely

updated andshared with the

contractors.

Contractor staffing

levels are poorly

managed (too few

or too many

personnel) .Contractor

demand levels are

not developed.

Low contractor

effectiveness and

efficiency exist.

Contractor staffing

levels are poorly

managed (too few

or too many

personnel) . Short-term contractor

demand levels are

rarely developed

and shared with

the contractors.

Low contractor

effectiveness andefficiency exist.

Contractor staffing

levels are

managed, but not

optimized. Short-

term contractor demand levels are

developed and

shared, but

medium-term

contractor demand

levels are

infrequentlydeveloped. Low

contractor


Contractor staffing

levels are

managed, but not

fully optimized.

Short-term andmedium-term

contractor demand

levels are

developed and

shared. Medium

contractor


Contractor staffing

levels are managed

and fully

optimized per

forecastedworkload

demands. Short-

term and medium-

term contractor

demand levels are

developed and

shared. Highcontractor

effectiveness and

efficiency exist.

21 H - Supply

Chain and

Contractor Management

The strategic

short-term and

medium-term performance goals

and contractor

objectives are

based on industry

best practices and

business priorities

(CMS objectives)

and are frequentlyupdated. Conflicts

between thefacility and

contractor/vendors

are rare.

There are no

strategic

performance goalsor contractor

objectives based

on CMS objectives

incorporated into

business

relationships.

Conflicts between


are frequent.Conflicts are

rarely resolved.

There are no

strategic

performance goalsor contractor

objectives based

on CMS objectives

incorporated into

business

relationships.

Conflicts between


are frequent andare informally

resolved.

Only short-term

strategic

performance goalsand contractor

objectives are

rarely updated

based on CMS

objectives.

Conflicts between

the facility and

contractor/vendorsare less frequent.

Conflicts areformally resolved.

Short-term and

medium-term

strategic performance goals

and contractor

objectives are

updated based on

facility CMS

objectives.

Conflicts between


are infrequent.Conflicts are

formally resolved.

Short-term and

medium-term

strategic performance goals

and contractor

objectives are

frequently updated

based on facili ty

CMS objectives.

Conflicts between


rarely occur andare quickly and

formally resolved.




Page 265 of 324



22 I - Measures of

Effectiveness(KPIs)/ Cost

Control

Maintenance and

reliability performance is

linked to

individual and

team rewards.

Maintenance and

reliability performance is not

linked to

individual or team

rewards.

High level

maintenance andreliability

indicators are

loosely associated

with individual or team rewards.

Goals and rewards

are not clearly

defined.

High level

maintenance andreliability

indicators are

associated with

individual or teamrewards. Goals

and rewards are

defined, but are

normally not

linked to facility

performance

indicators.

Maintenance and

reliabilityleadership develop

team and personal

reliability goals.

Performance isreviewed by

leaders on an

irregular basis.

Rewards may be

linked to facility

performance

indicators.

Maintenance and

reliabilityleadership develop

team and personal

goals in alignment

with facilityobjectives.

Performance is

reviewed by

leaders on a

regular basis.

Individual and

team rewards are based on this

performance.


(KPIs)/ Cost

Control

The maintenance budget is based on

defined activities.

No maintenance budget is

prepared.

The maintenance budget uses

historical costs to

create future

budgets. There is

little preplanningof maintenance

activities to

include in the

budge t.

The maintenance budget uses

historical costs to

create future

budgets. Major

activities are pre- planned to jus tify

the budget.

The maintenance budget is

predominant ly

based on pre-

planned and

approvedactivities.

The maintenance budget is strictly

based on pre-

planned and

approved

activities.

24 I - Measures of

Effectiveness

(KPIs)/ Cost

Control

Key Performance

Indicators (KPIs)

are well defined,

comprehensive,

and routinelymonitored for

performance gaps

and improvement

opportunities.

Information on

historical

performance ismaintained and

easily accessible.

KPIs do not exist. Some KPIs exist,

but are not

formally or

routinely

monitored, and aretypically only

against cost.

There is a formal

KPI program, but

it is typically only

against cost and is

seldom used todiagnose causes

and make

improvements.

A formal KPI

program exists,

but the results are

seldom used to

diagnose causesand make

improvements.

A formal and

comprehensive

KPI program

exists, where

measure aretrended and

benchmarked, and

action is initiated

to close gaps and

capitalize on

improvement

opportunities.

25 J -

Computerized

Maintenance

Management

System

The features

(modules) of the

CMMS are fully

utilized, including

work order management,

procurement,

inventory

management,

accounting,

reporting, job

planning and

scheduling, labor,equipment, and

integration withother databases

(samples, training,

etc).

No or very limited

use of CMMS (i.e.

master equipment

list).

CMMS used to

track work orders

and inventory. No

use of planning

templates,scheduling ability,

or work order

identification.

CMMS used to

plan, schedule, and

track work orders.

Inventory

management and purchasing

functions managed

in CMMS.

CMMS used for

all work and

materials

management.

Reports used totrack maintenance

performance

indicators. Work

orders identified as

breakdowns,

failure causes,

similar failures,

etc. for valuableinformation in

continuousimprovement

efforts.

CMMS used for

all work and

materials

management.

Direct input toKPIs. Work orders

identified as

breakdowns,

failure causes,

similar failures,

etc. for valuable

information in


efforts. CMMSintegrated with

other facility

databases.




Page 266 of 324



26 J -


Management

System

Facility personnel

are adequatelytrained and

competent in the

use of and access

of informationfrom the

Computerized

Maintenance

Management

System (CMMS).

Information is

readily used tomake business

decisions.

No formal or

informal traininghas been provided

to facility

personnel on the

use of the CMMS. No information

entered into

CMMS.

Word-of-mouth

training providedfor personnel on

the use of the

CMMS. No

documentationavailable for

training. Limited

information

entered into

CMMS.

Information is not

easily accessibleor frequently

accessed.

Informal

classroom trainingis available, but

infrequently

provided to facility

personnel. Limiteddocumentation

available for post-

training

reinforcement.

Limited

information

entered intoCMMS.

Information is not

easily accessible

or frequently

accessed.

Formal classroom

training is provided to facility

personnel.

Documentation is

available for post-training

reinforcement.

Increased levels of

information

entered into the

CMMS. Easy

access toinformation.

Information is not

frequently used.

Formal classroom

and computer based training

(CBT) is provided

and available to

facility personnel.Comprehensive

use of the CMMS.

Easy access to

information.

Information is

frequently used to

assist or drive business decisions.

27 J -

Computerized

MaintenanceManagement

System

Facility work

processes and the

features (modules)of the CMMS are

aligned. Modules

include Work

Orders, Preventive

Maintenance(PM), Job Plans,

Equipment,

Inventory,

Purchasing, Labor,

Calendars, and

Resources.

CMMS

functionality is

very limited. Allsite work

processes have to

be developed or

significantly

modified toaccommodate

CMMS features.

CMMS

functionality is

limited. Many sitework processes

have to be

developed or

modified to

accommodateCMMS features.

CMMS

functionality is

somewhatintegrated with site

work processes.

Many site work

processes have to

be slightlymodified to

accommodate

CMMS features.

CMMS

functionality is

partial ly integratedwith site work

processes. Some

features of CMMS

are not used or still

require a work process. Most site

work processes

were clearly

defined and

developed prior to

implementation of

CMMS.

CMMS

functionality is

fully integratedsite work

processes . All site

work processes

were clearly

defined anddeveloped prior to

implementation of

CMMS.

28 K - Campaign

Maintenance

The facility seeks

opportunities to

utilize campaign

maintenance philosophy to

maximize

efficiency andlower overall

lifecycle costs.

Company

expertise (e.g. the

Centralized

Campaign

MaintenanceTeam) is

effectively

utilized.

Site personnel and

contractors

typically perform

maintenance,which is not

planned or

scheduled inadvance. High

maintenance costs

exist. Campaign

maintenance is not

used at the facility.

Site personnel or

contractors

typically used to

performmaintenance

activities. These

activities areinformally planned

and scheduled in

advance, but result

in high

maintenance costs.

Campaign

maintenance is notused.

Site personnel or

contractors

typically used to

performmaintenance

activities. These

activities are notalways formally

planned or

scheduled in

advance.

Centralized

Campaign

MaintenanceTeam is

considered, but

infrequently usedat the facility.

Site personnel,

contractors, and

campaign

maintenance teamare used to

perf orm

maintenanceactivities, which

may not be

formally planned

and scheduled in

advance. The

efficiency and

effectiveness of campaign

maintenance

efforts have not been optimized.

The Centralized

Campaign

Maintenance

Team is used to perform all

appropriate

maintenanceactivities, which

are formally

planned and

scheduled in

advance.

Optimum

efficiency andeffectiveness of

campaign

maintenanceefforts have been

realized.29 L - Capital

Value Processfor

Turnarounds

Turnarounds

(TARs) aresufficiently

planned and

justified in

alignment with

Turnarounds taken


equipment

degradation.

Excessive non-

Turnarounds taken


equipment

degradation. The

TAR worklist is

Turnarounds are

taken based onequipment

inspection needs

and regulatory

policies. Major

Turnaround

frequency andscope is optimized

based on business

environment and


Turnaround

frequency andscope optimized

based on business

environment and





Page 267 of 324



business

objectives.

emergency

maintenancedeferred until the

TAR. Cost,

timing, duration,

and worklist arenot scrutinized

prior to the TAR.

No future TAR

planning or pos t-

TAR audit.

reduced via

routine breakdowncorrective

maintenance

completed during

the run. Noformal

review/approval

process for add-

ons. Planning for

current TAR only.

jobs are planned

and critical pathdetermined three

months prior to

shutdown. Formal

review/approval process for add-

ons. Informal

future TAR

planning.

The TAR worklist

is challenged andlocked out six

months prior to

shutdown. Formal

process for add-ons. Documented

future TAR

planning.

Worklist is locked

out 12 months prior to shutdown.

Formal process for

add-ons. TAR

Challenge processimplemented.

Documented and

updated future

TAR planning.

30 L - Capital

Value Process

for

Turnarounds

Turnarounds

(TARs) are

sufficiently

planned in

advance to allowfor cost-effective

material

procurement and

efficient delivery.

Material deliverydoes not impact

TAR duration.

CVP-TAR is used

to plan TAR

materials.

Turnaround

material

procurement is not

formally planned.

All materialsordered shortly

before and during

TAR, frequently

impacting

duration. Cost andlogistics are not

scrutinized prior to

the TAR. No

CVP-TAR use.

Turnaround

material

procurement is

informally

planned. Mostmaterials arrive on

site just prior or

during TAR,

frequently

impacting durationand overall TAR

cost. No CVP-

TAR use.

Turnaround

material

procurement is

ineffectively

planned resultingin high material

cost and frequent

significant impact

on TAR duration.

Materials for major jobs arrive

on site prior to

TAR. Infrequent

and ineffective

CVP-TAR use.

Turnaround

material

procurement is

effectively

planned resultingin lower material

costs and minor

TAR duration

impact. Most

materials are onsite prior to TAR.

Moderate use of

CVP-TAR.

Turnaround

material

procurement is

effectively

planned resultingin lowest material

costs and no TAR

duration impact.

All materials are

on site prior toTAR. Effective

and efficient use

of CVP-TAR.

31 M -

Knowledge

Management

There is a standard

for the amount and

quality of

informationcaptured in the

Computerized

Maintenance

Management

System (CMMS).

Information

includes work history, equipment

specifications,

inventory details,equipment specific

maintenance plans,

etc.

No standard for

minimum level of

information stored

in the CMMS.Maintenance work

history is rarely

captured. Very

limited

information on

inventory. No

details on specific pieces of

equipment or

equipmentcomponents.

No standard for

minimum level of

information stored

in the CMMS.Some work history

is written in

equipment files,

but not included in

CMMS or other

accessible

computer database. Limited

information on

inventory andspecific pieces of

equipment.

Informal standard

for minimum level

of information

stored in theCMMS. Work

history captured

for corrective

work orders, but

not for proactive

maintenance work

orders. Work history captured in

CMMS is poor.

Information existsfor inventory and

equipment.

Standard for

minimum level of

information stored

in the CMMS.Work history

captured for most

proactive and

corrective

maintenance work

orders. Detailed

information existson inventory and

all equipment.

ESMPs exist for most critical

equipment.

Standard for

minimum level of

information stored

in the CMMS.Work history is

captured for all

proactive and

corrective

maintenance work

orders. Detailed

information existson inventory and

all equipment.

ESMPs exist for all equipment.

32 M -Knowledge

Management

Employees havereceived

classroom and

practical training

in each of the

CMS processes

and tools. They

apply the training

to processes theyare directly

involved in andare conversant in

the other

processes.

Employees havenot received

classroom and

practical training

in each of the

CMS processes.

Some employeeshave received

classroom and

practical training

in some of the

CMS processes.

They apply the

training to the

processes they aredirectly involved

in, but aretypically not

conversant in the

other processes.

Some employeeshave received

classroom and

practical training

in each of the

CMS processes.

They apply the

training to the


in and are vaguelyconversant in the

other processes.

Many employeeshave received

classroom and

practical training

in each of the

CMS processes.

They apply the

training to the


in and aresomewhat

conversant in the

other processes.

Employees havereceived

appropriate

classroom and

practical training

in each of the

CMS processes.

They apply the

training to all of the processes they

are directlyinvolved in and

are conversant in

the other

processes.




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33 M -

KnowledgeManagement

The organization

sharesmaintenance and

reliability lessons

learned via

networking and benchmarking

activities inside

and outside their

Business Unit.

These lessons

learned are used in

new project designspecifications per

the Capital Value

Process (CVP).

Sharing of

maintenance andreliability lessons

learned is not

promoted.

Sharing of


learned inside and

outside the

business unit issporadic. No

policy or uniform

system is in place

to disseminate

lessons learned.

Sharing of


learned inside and

outside the

business unit isvoluntary.

Informal policies

and systems are in

place to

disseminate

lessons learned,

but are rarelyincorporated into

new project

designs.

Sharing of


learned inside and

outside the

business unit isencouraged.

Formal systems

are in place to

disseminate

lessons learned

(Intranet, reports,

etc.), but areseldom

incorporated into

new project

designs.

Sharing of


learned inside and

outside the

business unit is anexpectation.

Formal systems

are in place to

disseminate

lessons learned

and are frequently

incorporated intonew project

designs.

34 N -

Continuous

Improvement

Team Leaders are

highly visible and

actively involved

in the continuousimprovement

process. They

trend required

KPIs, join RCFA

studies andEquipment

Improvement

Teams, promote

planning and

scheduling, mentor

others, etc.

Team leaders are

not actively

involved in the


process.

Team leaders are

seldom visible and

marginally support

the continuousimprovement

process. They a re

vaguely aware of

some KPIs,

minimally supportRCFA studies and

Equipment

Improvement

Teams, planning

and scheduling,

etc.

Team leaders are

somewhat visible

and generally

support thecontinuous

improvement

process. They are

aware of required

KPIs, supportRCFA studies and

Equipment

Improvement

Teams, encourage

planning and

scheduling,

coaching, etc.

Team leaders are

usually visible and

actively support in

the continuousimprovement

process. They are

monitoring

required KPIs,

sponsoring RCFAstudies and

Equipment

Improvement

Teams,

encouraging

planning and

scheduling,mentoring, etc.

Team leaders are

highly visible and

actively involved

in the continuousimprovement

process. They are

trending required

KPIs, joining

RCFA studies andEquipment

Improvement

Teams, promoting

planning and

scheduling,

mentoring, etc.

35 N -

Continuous

Improvement

Management

supports


recommendations

(upgrades,replacing bad

actors, RCFA,

ESMP).

Management does

not allocate

resources to makeimprovements.

Management

supports

improvementsonly after

significant

events/losses.

Management

supports

improvementsonly during

favorable

economic times.

Management

supports

improvementsonly when the cost

benefit provides

large, short termreturn.

Management

supports

improvementrecommendations

where the life-

cycle costs showadequate return

against a well

defined standard.




Page 269 of 324


Appendix B

Success Stor ies

Introduction

The success stories are examples of actual situations where portions of the

Common Maintenance Strategy (CMS) were implemented with real andsignificant results. The Exploration and Production Technology Group(E&PTG) and contacts for each success story are available to review

details in each story. These results are attainable for every site.

Eleven success stories are included in this appendix. They are:1. Central Area Transmission System (CATS) – UK

2. Cusiana and Cupiagua – Colombia3. Alyeska Pipeline – USA

4. Ulysses Operation Center – USA5. Ha’py Development (GUPCO) – Egypt6. Pan American Energy (PAE) – Argentina

7. Anschutz Ranch – USA8. Whitney Canyon – USA

9. Pompano Field – USA10. ETAP Central Production Facility (2 specific stories) – UK




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Benefits – Success Story

• Improvement in 6 of 8 Maintenance Assessment Areas from 1998 to 2000

• Performance in 2002

– Operations Efficiency = 99.95%

– Production Critical EquipmentReliability = 99.48%

– Production Critical Equipment Availability = 99.45%

– SCE work orders overdue = 0

– Planned vs. Unplanned Work = 98.2%

– Overdue PMs = 2.2%

• Facility Availability above 98.8% for six continuous years

Central Area Transmission System (CATS) has played significant part in bp’s ongoing implementationof CMS. All key areas of performance are defined and reported regularly. CATS Terminal

Maintenance Team measures, analyzes, and evaluates the efficiency and effectiveness of themaintenance process activities in terms of progress towards defined goals.

• CATS performance has been the shining example for the corporation for the

benefits of the Common Maintenance Strategy.

• Maintenance and operational performance has been exceptional since start-up.

•

Performance on several key performance indicators for 2002 are:

KPI Plan Actual• Operations Efficiency > 99.5% 99.95%

• Production Critical Equipment Reliability > 99.5% 99.48%

• Production Critical Equipment Availability 99.5% 99.45%

• Safety-Critical Work Orders Overdue 0 0 (of 600)

• Planned vs. Unplanned Work Orders > 95% 98.2%

• Overdue PMs < 5% 2.2%

• Contact person for Success Story:

• Mike Thompson at CATS +44 1642 331251 [email protected]




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• Facility Efficiency over 98.5%

• Maintenance Cost Reductionof 50%

• Reliability Analysis(ESMP/RCM) to:

– reduce maintenance work

– replace instrumentcalibrations with functiontests

– minimize maintenance workon non-critical equipment

Colombia BU (Cusiana and Cupiagua facilities) developed two new world class facilities in the 1990s.Even with this, a maintenance assessment in 1999 highlighted areas for improvement. Notableportions of the CMS were implemented, including ESMP, condition-based maintenance, RCFA, and amaintenance alliance with a local supplier focused on reliability management and cost efficiency. Afollow up maintenance assessment in 2001 confirmed significant improvement.

PLANT EFFICIENCY CUS & CUP

96.5

97

97.5

98

98.5

99

99.5

10 0

1998 1999 2000 2001

Cusiana

Cupiagua

Total

-

1 0 , 0 0 0

2 0 , 0 0 0

3 0 , 0 0 0

4 0 , 0 0 0

5 0 , 0 0 0

6 0 , 0 0 0

7 0 , 0 0 0

8 0 , 0 0 0

9 0 , 0 0 0

TOTAL CUSIAN A TO TA L CU PIA G UA T O T A L SH U T DO W N

CP F

1.2.1 MAN HOURS REDUCTION IN PPM's PERIOD 2000-2002 CUS & CUP TEAM

7-Apr-00 18-Dic-00 27-Nov-01 8-Jul-02 8-Aug-02 26-Sep-02

Maint. Cost Decreasing

• The Colombia BU success story highlights significant improvements in a

two-year period.

• A maintenance assessment in 1999 revealed several performance gaps,

which were addressed by CMS processes ESMP, a condition-based

maintenance program, RCFA, and a maintenance alliance.

• The dramatic results in 2001 show

• Total Facility Efficiency at 99%

• Maintenance Cost Reduction of 50%


• Carlos A. Lozano at Colombia 57 186 346394




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• Value-added time from30% to 65+%

• 1MM$ Savings 1st year

• 2MM$ total savings off maintenance budget

• Schedule compliancefrom 30% to 80%

• Backlog reduction by 30%in 9 months

Alyeska Pipeline CMS Implementation – facility-wide ESMP/RCM analysis,process data collection system, and new planning and scheduling processto provide clear value added

• The Alyeska Pipeline success story focuses on improvements due to an

improved planning and scheduling process.

• Maintenance personnel utilization on value-added (time on tools (‘wrench

time’), participating in reliability analysis, documenting work history, planning work) improved from 30% to 65+%

• Maintenance savings of 1MM$ in the first year

• Schedule compliance improved from 30% to 80%

• Backlog was reduced by 30%


• Keith Pierce at E&PTG +1 281 366-7631 [email protected]




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• Maintained leadership

endorsement of continuous

improvement process

• Established PM job plans withESMP

• Eliminated recurring failureswith RCFA

• Effective use of CMMS for

planning and scheduling

• Results:

– Increased compressor

reliability from 95.5 to 98+%from 1998 to 2002

– Increased production 2-4MMSCFD through better

compressor reliability

The Ulysses Operation Center established a Reliability BasedMaintenance Program in 1998

Ulysses OC Production Impact

Common Maintenance Strategy

150

200

250

300

1998 1999 2000 2001 2002

BaselineProd ProdImpactBaseline@1998availability

Compressor Reliability

93

94

95

96

97

98

99

100

1998 1999 2000 2001 2002

%

• The Ulysses Operations Center success story shows the benefits of a

proactive maintenance program.• Proactive maintenance plans were created using the ESMP process and

implemented using a planning and scheduling process.• Root causes of recurring equipment failures were eliminated using the

RCFA process.

• Compressor reliability increased from 95.5% to 98+%, which led to

increased facility production.


• Dennis E. Scott at Ulysses +1 620 356 6977




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Ha’py Results• The negotiated annual

maintenance expenditure(contract) was reduced to US400M$ compared to an initialcontractor proposal of 2,400M$, asa result of the level of workdefinition.

• Resultant maintenance costs are$0.004/mcf compared to $0.04 to$0.05/mcf for the rest of GUPCO. A full 90% less.

• This work definition also allowed amajor reduction in “typical”maintenance staffing plans

Reliability Analysis (ESMP) adds value at Ha’py Development(GUPCO) Port Said, Egypt. This program defined the condition based

maintenance program for the variety of equipment installed in these assets.

• The Ha’py Development success story illustrates the benefits of a

condition-based maintenance program.•

Facility personnel completed an ESMP study for the plant equipment.These maintenance plans resulted in an efficient condition-basedmaintenance program.

• The resultant maintenance costs were 90% less than comparable facilities.

• A significant reduction in maintenance staffing was enabled due to this

optimized maintenance program.


• Steve Reber at Ha’py [email protected]




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• The PAE Success Story illustrates the benefits of Root Cause Failure Analysis (RCFA).

• The facility conducted a Pareto Analysis to identify the top failure mechanisms. The RCFA

study focused on these top failure modes.

• Facility personnel involved in the effort mention that the use of a logical process (e.g.

RCFA) allows personnel to:

• zero in on true root causes of equipment failure

• make changes to maintenance processes or design

• eliminate trial and error often associated with the identification of causes of equipment failure

• The benefits realized are significant:

• Reduction in beam pump failures from 45 to less than 20 per month

• Reduction in clutch failures from 15 to 5 failures per month

• Reduction in ignition failures from 13 to 6 failures per month

• Reduction in cooling system failures from 10 to 4 failures per month

• Gain in oil production of 18 m3/day (113 bbl/day), which equates to:

• 41,000 bbl/year gross recovery

• 32,400 bbl/year net recovery (79% net bp interest)


• Dave Bowman at E&PTG +1 281 366-7192 [email protected]

• Federico Caldora at PAE [email protected]


• Experienced 45 beam pumpfailures per month in late 2000

• Used Pareto Analysis to identifyand address root causes for thedominant failure modes

• Reduced clutch failures from 15 to5 failures per month.

• Reduced ignition failures from 13to 6 failures per month.

• Reduced cooling system failuresfrom 10 to 4 failures per month.

• The net result was an 18m3/day(113 bbl/day) average gain in oilproduction, which equates to

41,000 bbl gross recovery per year, or 32,400 bbl net recoveryper year (79% net bp interest).

Root Cause Failure Analysis (RCFA) adds significant value at Pan

American Energy (PAE), Argentina Comodora Rividavia byaddressing root causes of beam pump failures.




Page 276 of 324



Key Value-added Recommendations

• Utilize Infrared or Gamma Ray technology todetermine need to enter separator (critical path)

• Develop contingency if current shutdown criticalpath is shortened as a result of applyingrecommended technology

Benefits from Challenge process

• Utilization of recommended technology resultedin elimination of vessel entry and reduction inshutdown duration of 12hrs with estimatedsavings in lost revenue of 360M$

• Efficiency gains resulting from close scrutiny of secondary critical path items appear to provideadditional reduction in downtime estimated as anadditional 12hrs

TAR Challenge adds value at Anschutz Ranch - The TAR

Challenge is designed to provide “external” scrutiny at key stages in the CVP-TARcycle by utilizing the peer review process.

• The Anschutz Ranch success story shows the value that can be realized

from the TAR Challenge process.

• The TAR Challenge identified a new technology that could provide

justification for not entering the separator, which was the critical path for the turnaround.

• Utilization of the suggested technology did allow elimination of this vessel

during the turnaround, which reduced shutdown duration by 12 hours with

an estimated savings of lost revenue of 360 M$.• The TAR Challenge also identified efficiency gains, which resulted in the

reduction of the turnaround duration by another 12 hours.


• Jerry Earl Flitcraft at Anschutz +1 307 783 2418 [email protected]




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Key Value-added Recommendations

• Establish Single Point Accountability (SPA)• Document Roles and Accountabilities for key

personnel• Develop and communicate HSE plan• Detail Execution Plan with contingency

Benefits from Challenge process

• Clear organizational hierarchy• Nitrogen purge process shortened (estimated 48

hours in savings)• Logistics plan for areas of significant workload

established

• KPIs for TAR deliverables established• TAR completed with 250,000 man-hours and only

one first aid case• Minimized production loss by executing field and

inlet facility scope ahead of schedule

TAR Challenge adds value at Whitney Canyon - The TARChallenge is designed to provide “external” scrutiny at key stages in the CVP-TARcycle by utilizing the peer review process.

• The Whitney Canyon success story shows the value that can be realized

from the TAR Challenge process.

• The TAR Challenge identified an optimized nitrogen purge process, which

resulted in an estimated 48 hours in time savings.• Logistics planning and a thorough Execution Plan enabled a successful

TAR of 250,000 man-hours with only one first aid case.• Production losses due to the TAR were minimized by executing the field

and inlet facility scopes of work ahead of schedule. Having a well-developed TAR Execution Plan allows the TAR team to maximize the

benefits of being ahead of schedule.


• Tim Blackburn at GOM DWP +1 281 366 4445 [email protected]

•

Janice Vosika at Whitney Canyon +1 307 783 2501




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Key Value-Added Activities• Excellent management support

– Gatekeeper ensured strong planning effort – Present on platform during TAR for leadership – Clear single point of accountability – Documented, and communicated roles and expectations

• Strong focus on safety with stop cards and rewards• Operations total cooperation

– Operations assigned individuals to tasks – Evident ownership and enthusiasm – Permits worked up and ready in advance of work

• Excel lent planning for TAR – Full-time planner assigned to TAR – Firm scope freeze point – Single comprehensive schedule

• Good mater ials management – Pre-shutdown materials staging and work packs – Good expediting, staging, and quality assurance practices

Key Results• Perfect safety and environmental performance (zeros)

• Completed under schedule (40hrs vs planned 72hrs)• Zer o ad d-o n wor k• TAR Challenge had high impact on readiness, planning,

materials management, risk assessment, contractor performance, and technical support

CVP-TAR and TAR Challenge add value at Pompano Field.Pre-shutdown planning and thorough challenge process yield superb safety andexecution performance.

• The Pompano Field TAR success story illustrates the impact that planning can

have on a shutdown.• As with all major projects, strong management support is essential for successful

execution.• Major emphasis on safety with use of stop cards and linking of performance bonus

with safety performance.

• Operations showed total commitment to the TAR effort with timely permits,equipment ownership, and an excellent attitude.

• Pre-shutdown planning with many planning meetings, leadership direction, and a

firm scope freeze date ensured the platform was ready for the work and that add-on work would be minimized.

• Staged materials and work packs ensured effective materials coordination. TAR

team recommended using work packs on all tasks, even small ones to ensure

nothing falls through the cracks.• Safety and Environmental performance - Lost Time Incidents, First Aid Cases,

Recordable Incidents, and Recordable Environmental Excursions were all zero.• TAR cost was not tracked or considered a major issue for success.

•

Due to excellent weather and superb planning and execution, TAR was completedunder schedule with no add-on work.


• Ken Henckel +1 281 366-7866 [email protected]




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• Upgraded air intake filters –Water washing intervals extended to 1 per year

–Reduced HGP component repair and replacement costs

–Extension of inspection intervals

–Improved environmental performance

• HGP Component Life Extender KIT

–350 boe future lost production through combustioninspection elimination

• Online Remote Performance and PEMSMonitoring

–Compliance with environmental regulations

–Remote trouble shooting and support

–Online performance monitoring

–Ability to make informed decisions on maintenance and

operational issues

•• TOTAL INVESTMENT TO DATE:TOTAL INVESTMENT TO DATE:–– CAPEX $600kCAPEX $600k- OPEX $100k- OPEX $100k

ETAP Central Production Facility - Gas Turbine Upgrades

• Thorough inspection, condition monitoring, and data analysis allowed for

improved turbine performance at ETAP Central Production Facility.

• Air intake filters were upgraded per recommendations from E&PTG (a

knowledge management bank). These upgraded air filters allowed for

extended water washing and inspection intervals, reduced repair costs, and

improved environmental performance.• Component Life Extender Kit allowed for reduction of lost production of

350 boe due to elimination of combustion inspection task.• Online remote performance monitoring improved compliance with

environmental regulations and enhanced ability to make informeddecisions on maintenance and operational issues.


• Bob J. Stewart at ETAP +44 1224 834757




Page 280 of 324


Benefits – Success StoryETAP Central Production Facility – Involved internal and

external independent specialists to justify extension of HotGas Inspection from 24k to 32k hours.

• By:

– Exploitation of available technology (TIGER)and machine history

– Independent inspection undertaken onsite

– Application of REI principles such ascomponent life cycle analysis

– Networking with other Frame 6 users

• Resulting in:

– Zero hours downtime.

– Saved 300mboe in potential lost production . – Saved OPEX cost 200USD by not undertaking

repairs.

• Another implemented recommendation at ETAP Central Production

Facility allowed for extension of gas turbine hot gas inspection intervals

from 24k to 32k hours (2.5 years to 3.5 years)• Networking with other turbine users and exploitation of available

monitoring technology (TIGER) allowed for this interval extension with

zero associated hours downtime.• These increased inspection intervals allow for reduced turbine

unavailability, which equates to the elimination of 300 mboe in potentiallost production.


• Bob J. Stewart at ETAP +44 1224 834757




Page 281 of 324


Appendix C

Key Performance I ndicators

Introduction

Key Performance Indicators (KPIs) can measure any aspect of a facility’s

performance, such as, revenue, expenses, reliability, availability, schedulecompliance, and personnel utilization. They are the road markers on theroad of continuous improvement. They indicate where the business is

performing and suggest processes that need to be optimized in order toreach best-in-class performance.

KPIs for the Common Maintenance Strategy (CMS) measure either the

efficiency of a process or the effectiveness of a process. Efficiencyusually equates to the cost of implementation. Effectiveness is the benefit

realized. By comparing efficiency and effectiveness measures, we cangraphically show how much a process costs in order to realize the current

performance. The plot also shows that additional enhancement of a

process can lead to improved benefits. The graph below indicates that achange in philosophy (i.e. the addition of new proactive maintenance

processes or the optimization of existing ones) may be needed in order toattain world class performance.




Page 282 of 324


KPIs can be created and tracked around facility performance as related tothe CMS. KPIs can also be created for each individual process used in the

CMS; however, this would create a KPI suite too massive to be effectivelymonitored. Periodic assessments will address the performance for each of

the individual processes.

Included in the appendix is the list of the most important KPIs to betracked in reference to the CMS. The different sections are:

q Critical KPI efficiency-effectiveness relationshipsq Overall KPI Listq Calculation for each KPI

q Benefit for each KPIq Type, Target, Trend, Monitoring Frequency, and Related KPIs

q CMS and Related Processes to help improve the KPI trend




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Critical KPI Relationships

Efficiency (implementation costs) Effectiveness (benefits realized)

Lifting Cost Production Efficiency

Lifting Cost Overall Equipment Effectiveness

Maintenance Cost Reliability of Critical EquipmentProactive Maintenance Cost Reliability of Critical Equipment

Proactive Maintenance Cost Availability of Critical Equipment

Proactive Maintenance Cost Prompted Corrective Maintenance

Reliability Analysis Program Cost Availability Improvement

Reliability Analysis Program Cost Reliability Improvement

CMS Implementation Cost Work Order Schedule Compliance

CMS Implementation Cost Maintenance Personnel Utilization

KPI List by CMS Element

q Leadership and Organizationq Overall Operating Efficiency

q Production Efficiencyq MI/HiPos

q Lifting Costq Maintenance Cost per Total Operating Costq Maintenance Cost per Equipment Replacement Value

q CMS Implementation Costq CMS Implementation Status

q Facility Availabilityq Proactive Maintenance Cost

q Maintenance Cost per Capacityq Reliability Analysis Program Costq Overall Equipment Effectiveness

q Equipment Reliabilityq Reliability of Critical Equipment

q Facility Availabilityq Availability of Critical Equipment

q Work Managementq Percent Planned Work q Man-Hour Schedule Compliance

q Overdue Safety Critical Equipment Work Orders

q Maintenance Personnel Utilization (Wrench Time)q Maintenance Personnel Utilization (Value Added Work)q Man-Hour Backlog

q Percent Emergency Maintenanceq Percent Proactive Maintenance




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q Percent Prompted Corrective Maintenanceq Percent Breakdown Corrective Maintenance

q Proactive Maintenance Man-Hours Overdueq Corrective Maintenance Man-Hours Overdue (non-emergency)

q Estimated to Actual Proactive Maintenance Man-Hoursq Estimated to Actual Corrective Maintenance Man-Hours

q Maintenance Overtime Man-Hoursq Contractor Cost

q Effectiveness of Proactive Maintenance Program

q Materials Managementq Savings due to Preferred Provider Relationships

q Storehouse Cost per Inventory Valueq Storehouse Inventory per Equipment Replacement Value

q SKU Stockoutsq Inventory Turns per Year

q Parts Expedited

q Change Managementq Key Personnel Roles and Accountabilities Definedq Maintenance Trainingq CMS Assessment Score

q Continuous Improvementq Availability Improvementq Reliability Improvement

q Maintenance Utilization Improvementq Schedule Compliance Improvement

q Mean Time To Repair (MTTR)q Mean Time Between Failures (MTBF) for Critical Equipment




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How to Calculate CMS KPIs

This section shows a calculation for each KPI used in the CMS.


KPI Name Units Lev.? How to CalculateOverall Operating

Efficiency

% 1 [Actual Production / (Actual Production + PlannedLosses + Unplanned Losses)] x 100%

Production Efficiency % 1 (Actual Production / Theoretical ProductionCapacity) x 100%

MI/HiPos # 1 Number of Major Incidents and High Potential

Incidents

Lifting Cost $/boe 1 Total Operating Costs / Total Production inbarrels of oil equivalent

Maintenance Cost per

Total Operating Cost

% 2 (Total Maintenance Costs / Total OperatingCosts) x 100%


Equip. Replacement Value

% 2 (Total Maintenance Costs / Equipment

Replacement Value) x 100%

CMS Implementation Cost % 3 (Total Costs to Implement CMS Processes /Total Maintenance Cost) x 100%

CMS Implementation

Status

% 2 Progress Along Timeline of CMSImplementation with all 4’s on acceptance of implementation per process

Facility Availability

KPI Name Units Lev.? How to CalculateProactive Maintenance

Cost

% 3 (Total Preventive, Predictive, Condition

Monitoring, and Function Testing Maint. Costs/ Total Maintenance Cost) x 100%

Maintenance Cost perCapacity

$/HP 3 Total Maintenance Expenses / Sum of Equipment Horsepower

Reliability Analysis

Program Cost

% 3 (Total Reliability Analysis Program(ESMP/RCM/RCFA/RBI) Costs / CMSImplementation Cost) x 100%

Overall Equipment

Effectiveness

% 3 Equipment Availability x Production Efficiencyx Production Quality(for critical equipment in onshore facilities only)

Equipment Reliability(36-month rolling average)

% 3 (Total Hours in Period – UnscheduledDowntime Hours) / Total Hours x 100%

Reliability of Critical

Equipment

% 2 (Total Hours in Period – UnscheduledDowntime Hours) / Total Hours x 100%(for all types of critical equipment only)

Facility Availability(36-month rolling average)

% 3 (Total Hours in Period – Unscheduled

Downtime Hours – Scheduled DowntimeHours) / Total Hours x 100%

Availability of Critical

Equipment

% 2 (Total Hours in Period – Unscheduled

Downtime Hours – Scheduled DowntimeHours) / Total Hours x 100%(for all types of critical equipment only)




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Work Management

KPI Name Units Lev.? How to CalculatePercent Planned Work % 2 (Number of Planned Man-Hours* / Total

Number of Man-Hours) x 100%(* including PdM and CM man-hours)

Man-Hour ScheduleCompliance

% 2 (Actual Man-Hours Completed per Schedule /Total Man-Hours Scheduled) x 100%

Overdue Safety Critical

Equipment Work Orders

% 1 (Number of Overdue Work Orders on SafetyCritical Equipment / Total of SCE Work

Orders) * 100%

Maintenance Personnel

Utilization (Wrench Time)

% 2 (Man-Hours on Tools (‘Wrench Time’) / TotalMaintenance Man-Hours) x 100%


Utilization (Value Added)

% 2 (Man-Hours on ‘Value Added’ Work / TotalMaintenance Man-Hours) x 100%

Man-Hour Backlog Day/FTE 2 (Total Man-Hours on Backlog / 8 hours per day) / Full-Time Equivalent Personnel

Percent Emergency

Maintenance

% 2 (Total Emergency Man-Hours / TotalMaintenance Man-Hours) x 100%

Percent Proactive

Maintenance

% 2 (Proactive Maintenance Man-Hours / TotalMaintenance Man-Hours) x 100%

Percent Prompted

Corrective Maintenance

% 2 (Prompted Corrective Maintenance Man-Hours/ Total Maintenance Man-Hours) x 100%

Percent Breakdown


% 2 (Breakdown Corrective Maintenance Man-Hours / Total Maintenance Man-Hours) x100%

Proactive Maintenance

Man-Hours Overdue

% 2 (Total Proactive Maintenance Man-Hours

Overdue / Total Scheduled) x 100%

Corrective Maint. Man-

Hours Overdue (non-

emergency and not safety

critical)

% 2 (Total Non-Emergency CorrectiveMaintenance Man-Hours Overdue / TotalMaintenance Man-Hours) x 100%

Estimated to ActualProactive Maint. Man-

Hours

% 2 (Estimated Proactive Maintenance Man-Hours/ Actual Man-Hours) x 100%

Estimated to Actual


Hours

% 2 (Estimated Corrective Maintenance Man-Hours / Actual Man-Hours) x 100%

Maintenance Overtime % 2 (Maintenance Overtime Man-Hours / TotalMaintenance Man-Hours) x 100%

Contractor Cost % 3 (Total Contractor Costs / Total MaintenanceCosts) x 100%

Effectiveness of PM

Program

% 2 (# prompted corrective WOs driven from PM /total # PMs) x 100%




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KPI Name Units Lev.? How to CalculateSavings due to Preferred

Providers

$ 3 Estimated Savings due to Preferred Provider

Relationships

Storehouse Cost perInventory Value

% 2 (Actual Costs of Storehouse Operations /Storehouse Inventory Value) x 100%

Storehouse Inventory

Value per Equipment

Replacement Value

% 2 (Actual Value of Storehouse Inventory /

Equipment Replacement Value) x 100%

SKU Stockouts % 2 (Actual SKU Stockouts / Total SKU Count) x

100%

Inventory Turns per Year % 2 Actual Orders Picked / Total SKU Count

Parts Expedited % 2 (Orders Expedited / Total Orders Placed) x100%

Change Management

KPI Name Units Lev.? How to CalculateKey Personnel Roles and

Accountabilities

% 2 (# Yes / Number with direct influence) * 100%(Is CMS implementation in their personalobjectives in myPerformance?)

Maintenance Training hrs/FTE 2 Maintenance Training Hours per Year / Full-Time Equivalent Maintenance Personnel

CMS Assessment Score % 2 (CMS Assessment Score / Total PossibleScore) x 100%


KPI Name Units Lev.? How to Calculate

Availability Improvement % 2 [(Current Availability - Past Availability) / Past Availability] x 100%

Reliability Improvement % 2 [(Current Reliability - Past Reliability) / PastReliability] x 100%

Maintenance Utilization

Improvement

% 2 [(Current Utilization - Past Utilization) / PastUtilization] x 100%

Schedule Compliance

Improvement

% 2 [(Current Compliance - Past Compliance) /Past Compliance] x 100%

Mean Time To Repair

(MTTR)

Hours 2 Total Lock-Out to Unlock Time / Number of Lockouts for Repairs

Mean Time Between

Failure for Critical

Equipment

Months 2 Cumulative Operating Time / Total Number of Failures




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Benefit of CMS KPIs

This section explains the benefit for each KPI used in the CMS.


KPI Name Benefit of KPIOverall Operating

Efficiency

Part of eChoke that shows the overall picture of facility operating losses from

planned and unplanned downtimes. Helps ident ify course of losses and where

to focus defect elimination efforts.

Production Efficiency Part of eChoke that shows the actual production against the theoretical

maximum production capacity. Helps isolate causes of losses.

MI/HiPos Indicates the effectiveness of the HSE and PSIM efforts.

Lifting Cost Indicates the cost of doing business with the facility. As lifting costs increase,

facility profitability decreases.


Total Operating Cost

Shows the percent of operating costs spent on maintaining the facility.

Excessive unnecessary maintenance and poor equipment reliability contribute

to this ratio.


Equip. Replacement Value

Shows ratio of maintaining the equipment compared to replacing the

equipment. Poor reliability and poor design could cause this number toincrease.

CMS Implementation Cost Shows the percent of the maintenance spending that was directed towardsactivities that should improve facility profitability.

CMS Implementation

Status

Indication of the progress of the CMS implementation effort. Full

implementation is expected within 2 years with leadership support.


KPI Name Benefit of KPIProactive Maintenance

Cost

Shows the percent of the maintenance spending that is directed towards

proactive maintenance act ivities. The intent is to create a more proactive than

reactive maintenance organization.


Capacity

An industry benchmark calculation that shows the maintenance spending on a

particular type of rotating equipment (pumps, gas turbines, etc.) prorated by

the horsepower of the driver.


Program Cost

Reliability analysis programs (ESMP/RCM/RCFA/RBI) are intended to derive

the largest benefit towards optimizing the maintenance organization.

Overall Equipment

Effectiveness

An industry benchmark that shows the benefit of operating each piece of

equipment.

Equipment Reliability(36-month rolling average)

Calculation that shows the amount of unscheduled equipment downtime that prevents a piece of equipment from performing i ts required funct ion.


Equipment

Equipment reliability calculation for production, safety, and environmental

critical equipment.


(36-month rolling average)

Calculation that shows the amount of scheduled and unscheduled equipment

downtime that prevents a piece of equipment from performing its required

function.

Availability of CriticalEquipment

Equipment availability calculation for production, safety, and environmental

critical equipment.

Work Management




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KPI Name Benefit of KPIPercent Planned Work Shows the effectiveness of the planning effort. Planned work improves the

efficiency of maintenance activities.

Man-Hour Schedule

Compliance

Shows the effectiveness of the scheduling effort. Scheduled work improves

maintenance personnel utilization.

Overdue Safety Critical

Equipment Work Orders

Indication of the scheduling effort in terms of work order for safety criticalequipment.


Utilization (Wrench Time)

Indication of the effectiveness of the planning and scheduling effort ineliminating wasted time preparing for maintenance work.


Utilization (Value Added)

Indication of the amount of time maintenance personnel are providing value to

the facility, either by maintaining equipment or participating in training or

reliability analysis efforts. See list of value added activities in glossary.

Man-Hour Backlog Indication of the effectiveness of the planning and scheduling effort and the

manpower levels for the maintenance workforce. May also be an indication of

poor equipment reliabi lity with excessive emergency and breakdown

corrective maintenance.

Percent Emergency

Maintenance

An indication of the effectiveness of the gHSEr, PSIM, proactive maintenance,

and reliability analysis efforts in the elimination of critical equipment failures.

Percent Proactive

Maintenance

Indicates progress towards creating a more proactive than reactive maintenanceregime.

Percent Prompted


Shows the benefit of proactive maintenance activities (in particular, condition

monitoring) in detecting equipment abnormalities indicative of an impending

failure.

Percent Breakdown


An indication of the effectiveness of the proactive maintenance and reliabilityanalysis efforts in the elimination of equipment defects affecting reliability.


Man-Hours Overdue

Shows the effectiveness of the scheduling effort and of maintenance manpower levels. May also indicate excessive breakdown corrective maintenance.


Hours Overdue (non-

emergency and not safety

critical)

Shows the effectiveness of the scheduling effort and of maintenance manpower

levels. May also indicate excessive breakdown corrective maintenance or

improper prioritization of work orders.

Estimated to Actual

Proactive Maint. Man-

Hours

Indicates the effectiveness of the planning and scheduling effort and of the

incorporation of feedback from maintenance personnel performing the work.

Estimated to Actual


Hours

Indicates the effectiveness of the planning and scheduling effort and of the

incorporation of feedback from maintenance personnel performing the work.

Maintenance Overtime Indicates deficiencies in maintenance manpower levels, poor scheduling effort,

or improper use of performance evaluation system.

Contractor Cost Used to track the cost of contractors used for maintenance activities.

Effectiveness of PMProgram

Indicates the usefulness of the proactive maintenance activities (type and

frequency).





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KPI Name Benefit of KPISavings due to Preferred

Providers

Shows the value realized from using preferred provider relationships.

Storehouse Cost per

Inventory Value

An indication of the efficiency of the storehouse operations.

Storehouse Inventory

Value per Equipment

Replacement Value

Indicates the effectiveness of the spare parts management effort in terms of

inventory count, stocking levels, and vendor-stored items.

SKU Stockouts Indicates improper stocking levels and overuse (possibly due to poor

equipment reliability or inadequate maintenance training).

Inventory Turns per Year An indication of proper stocking levels and inventory count.

Parts Expedited An indication of proper stocking levels, inventory count, and productioncritical equipment reliability.

Change Management

KPI Name Benefit of KPIKey Personnel Roles and

Accountabilities

Indicates percent of workforce with CMS implementation added to their

personal objectives in myPerformance.

Maintenance Training An industry benchmark for the amount of enhancing and refreshing training

provided to maintenance personnel .

CMS Assessment Score Indicates effectiveness of CMS effort.


KPI Name Benefit of KPIAvailability Improvement Shows the benefit of the CMS effort in terms of improved equipment

availability.Reliability Improvement Shows the benefit of the CMS effort in terms of improved equipment

reliability.

Maintenance Utilization

Improvement

Shows the benefit of the CMS effort in terms of improved maintenance

personnel utilization on value-added work.

Schedule Compliance

Improvement

Shows the benefit of the CMS effort in terms of improved schedule

compliance.

Mean Time To Repair

(MTTR)

An indication of the effectiveness of maintenance training and the planning

and scheduling effort.

Mean Time Between

Failure for Critical

Equipment

Indicates the reliability of production, safety, and environmental critical

equipment.




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Details for CMS KPIs

This section lists the following details for each KPI in the CMS:q Type of Measure – efficiency (cost) or effectiveness (benefit)

q Target Value – if known; site specific ones are indicated with a ‘?’

q Desired Trend – up (increasing) or down (decreasing) over timeq Number of Months between Updates – when to calculate each KPIq Related KPIs – opposite-type KPIs for good comparisons


KPI Name Type Trgt Tnd M Related KPIsOverall Operating

Efficiency

Effectiveness ? Up 1 • Proactive Maint. Cost

Production Efficiency Effectiveness ? Up 1 • Lifting Cost

• Maint. Cost per ERV

MI/HiPos Effectiveness 0 Down 1 • Maint. Cost per ERV• Rel. Anal. Prog. Cost

Lifting Cost Efficiency 2.30$/boe

Down 1 • Production Efficiency

• Overall Equip. Effect.

Maint. Cost per TOC Efficiency 15% Down 1 • Overall Equip. Effect.

• Equip. Reliability

Maint. Cost per ERV Efficiency 1.5% -3.0%

Down 1 • Production Efficiency

• Equip. Reliability


CMS Implementation

Cost

Efficiency ? Down 12 • CMS Impl. Status

• Availability Imp.

• Reliability Imp.• Utilization Imp.

• Sch. Complnc. Imp.

CMS Implementation

Status

Effectiveness 100%

in 2years

Up 12 • CMS Impl. Cost


KPI Name Type Trgt Tnd M Related KPIsProactive Maint. Cost Efficiency ? Down 1 • Equip. Reliability

• Facility Availability• Overall Oper. Effcy.

• Pct. Brkdn. Maint.

Maint. Cost per

Capacity

Efficiency ? Down 1 • Equip. Reliability





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Program Cost

Efficiency ? Down 1 • Equip. Reliability


Overall Equip.

Effectiveness

Effectiveness 85% Up 1 • Lifting Cost

• Maint. Cost per TOC

• CMS Implmnt. Cost

Equipment Reliability Effectiveness ? Up 1 • Maint. Cost per ERV• Proactive Maint. Cost

• Rel. Anal. Prog. Cost

• Maint. Training Cost


Equip.

Effectiveness 99% Up 1 • Maint. Cost per Cap.

Facility Availability Effectiveness >98% Up 1 • Maint. Cost per ERV


Availability of

Critical Equip.

Effectiveness >98% Up 1 • Proactive Maint. Cost

• Maint. Cost per Cap.


Work Management

KPI Name Type Trgt Tnd M Related KPIsPercent PlannedWork

Effectiveness 90% Up 1 • CMS Impl. Cost

MH Schedule

Compliance

Effectiveness >80% Up 1 • Maint. Overtime

Overdue SCE Work

Orders

Effectiveness 0 Down 1 • Rel. Anal. Prog. Cost

• Maint. Overtime

Maint. Personnel

Utilization (WrenchTime)


Maint. Personnel

Utilization (Value

Added Work)


Man-Hour Backlog Effectiveness 30dys/fte

Down 1 • Maint. Overtime

Pct. Emergency

Maintenance

Effectiveness <5% Down 1 • Proactive Maint. Cost


Percent Proactive

Maintenance

Effectiveness 65% Up 1 • Proactive Maint. Cost

Pct. PromptedCorrective Maint.

Effectiveness

20% Up 1 •

Proactive Maint. Cost

Pct. Breakdown

Corrective Maint.

Effectiveness 10% Down 1 • Proactive Maint. Cost


• CMS Impl. Cost




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Proactive Maint. MH

Overdue

Effectiveness <5% Down 1 • Maint. Overtime

Corrective Maint.

MH Overdue

Effectiveness <15% Down 1 • Maint. Overtime

Est.-Act. Proactive

Maint. MH

Effectiveness +/- 5% Down 1 • CMS Impl. Cost

Est.-Act. Correct.

Maint. MH

Effectiveness +/-20%

Down 1 • CMS Impl. Cost

Maintenance

Overtime

Efficiency <5% Down 1 • MH Sch. Compliance

• MH Backlog

• Pro. Maint. Overdue

• Cor. Maint. Overdue

Contractor Cost Efficiency ? Down 1 • Equip. Reliability

Effectiveness of

Proactive Maint.

Program

Effectiveness ? Up 1 • Proactive Maint. Cost


KPI Name Type Trgt Tnd M Related KPIsSavings due to Prefer.

Providers

Effectiveness ? Up 1 • Store. Cost per Value

Storehouse Cost of

Inventory Value

Efficiency <35% Down 1 • SKU Stockouts

• Parts Expedited

Inventory Value per

ERV

Efficiency 0.5% Down 3 • SKU Stockouts

• Parts Expedited

SKU Stockouts Effectiveness <1% Down 1 • Store. Cost per Value

•

Inventory per ERVInventory Turns per

Year

Effectiveness >2 Up 1 • Store. Cost per Value

• Inventory per ERV

Parts Expedited Effectiveness 2% Down 1 • Store. Cost per Value

• Inventory per ERV

Change Management

KPI Name Type Trgt Tnd M Related KPIsKey Pers. R&A Effectiveness 100% Up 12 • CMS Impl. Cost

Maintenance Training Efficiency 40

hrs/fte

Up 12 • MTTR

• Equip. ReliabilityCMS Assessment

Score





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KPI Name Type Trgt Tnd M Related KPIsAvailability Imp. Effectiveness ? Up 12 • Rel. Anal. Prog. Cost

Reliability Imp. Effectiveness ? Up 12 • Rel. Anal. Prog. Cost

Maint. Util. Imp. Effectiveness ? Up 12 • Sch. Cmplnc. Imp. Effectiveness ? Up 12 •

Mean Time To Repair

(MTTR)

Effectiveness ? Down 1 • Maint. Training Cost

MTBF Critical Equip. Effectiveness ? Up 1 • Proactive Maint. Cost






Page 296 of 324


• Data Analysis• Operator Performed Maint.

• Planning and Scheduling• Spare Parts Management

• Supply Chain Management• Quality Assurance Program

• Risk Based Inspection• Gener. Equip. Maint. Strategies

• Campaign Maintenance• Optimize Staffing• CMS for New Projects

CMS Implement. Cost • CMMS• Knowledge Management• ESMP/RCM

• Defect Elimination Program• Condition Monitoring


• Planning and Scheduling•

Spare Parts Management• Supply Chain Management

• Quality Assurance Program• Risk Based Inspection

• Gener. Equip. Maint. Strategies• Campaign Maintenance

• Optimize Staffing• Roles, Accountabilities, Deliv.

• CMS for New Projects• CVP-TAR

• PSIM• Capital Value Process

CMS Implement. Status • CMMS

• Knowledge Management• ESMP/RCM• Defect Elimination Program

• Condition Monitoring• Data Analysis

• Operator Performed Maint.• Planning and Scheduling

• Spare Parts Management• Supply Chain Management

• Quality Assurance Program• Risk Based Inspection• Gener. Equip. Maint. Strategies

• Campaign Maintenance• Optimize Staffing

• Roles, Accountabilities, Deliv.• CMS for New Projects

• CVP-TAR

• TeamShare

• Performance Eval.• PSIM• Choke Model

• Capital Value Process


KPI Name CMS Processes Related Processes




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Proactive Maint. Cost • ESMP/RCM• Condition Monitoring

• Data Analysis

• Training Program

Maint. Cost per

Capacity

• ESMP/RCM• Defect Elimination Program

• Operator Performed Maint.

• Quality Assurance Program



Program Cost

• Knowledge Management


• Optimize Staffing• CMS for New Projects

• CVP-TAR



Overall Equipment

Effectiveness

• Knowledge Management• ESMP/RCM

• Defect Elimination Program• Condition Monitoring• Data Analysis

• Operator Performed Maint.•

Planning and Scheduling• Spare Parts Management• Quality Assurance Program

• Gener. Equip. Maint. Strategies• CMS for New Projects

• CVP-TAR

• Training Program• PSIM


Equipment Reliability • ESMP/RCM• Defect Elimination Program• Condition Monitoring



•

CVP-TAR

• Training Program• PSIM• Capital Value Process


Equipment


• Condition Monitoring• Data Analysis

• Operator Performed Maint.• Gener. Equip. Maint. Strategies• CMS for New Projects

• CVP-TAR



Facility Availability • ESMP/RCM• Defect Elimination Program


• Spare Parts Management• CMS for New Projects

• CVP-TAR

• Training Program• Health, Safety, Env.

• PSIM• Capital Value Process

Availability of Critical

Equipment


• Operator Performed Maint.

• Training Program• Health, Safety, Env.

• PSIM




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• CMS for New Projects• CVP-TAR


Work Management

KPI Name CMS Processes Related ProcessesPct. Planned Work • Planning and Scheduling

• Optimize Staffing


MH Schedule

Compliance

• CMMS• Planning and Scheduling


• Succession Planning• Training Program

Overdue SCE Work

Orders

• CMMS

• ESMP/RCM• Planning and Scheduling

• Spare Parts Management•

Optimize Staffing

• Succession Planning


Maint. Personnel

Utilization (Wrench

Time)

• Condition Monitoring• Operator Performed Maint.


• Supply Chain Management• Gener. Equip. Maint. Strategies



Maint. Personnel

Utilization (Value

Added Work)

• ESMP/RCM


• Operator Performed Maint.•

Planning and Scheduling• Spare Parts Management

• Supply Chain Management• Gener. Equip. Maint. Strategies



Man-Hour Backlog • CMMS


• Spare Parts Management• Supply Chain Management• Quality Assurance Program



• Performance Eval.

Percent Emergency

Maintenance

• CMMS







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Percent Proactive

Maintenance

• CMMS• Condition Monitoring

• Planning and Scheduling


Percent Prompted

Corrective

Maintenance

• CMMS• Condition Monitoring

• Data Analysis

• Operator Performed Maint.• Risk Based Inspection• Campaign Maintenance


Percent Breakdown

Corrective

Maintenance

• CMMS





Man-Hours Overdue

• CMMS

• Condition Monitoring• Planning and Scheduling• Optimize Staffing

• Roles, Accountabilities, Deliv.



CorrectiveMaintenance Man-

Hours Overdue (non-

emerg.)

•

CMMS• Condition Monitoring

• Planning and Scheduling• Optimize Staffing


•

Succession Planning• Training Program

Est. – Act. Proactive

Maint. MH


• Succession Planning• Training Program

Est. - Act. Corrective

Maint. MH

• Planning and Scheduling




Maintenance Overtime • Operator Performed Maint.• Planning and Scheduling


• TeamShare

Contractor Cost • Supply Chain Management

• Optimize Staffing• CVP-TAR

•

Effectiveness of PM

Program

• CMMS

• Knowledge Management• ESMP/RCM• Condition Monitoring


• Planning and Scheduling• Gener. Equip. Maint. Strategies



• TeamShare• Performance Eval.• Training Program


KPI Name CMS Processes Related ProcessesSavings due to • Supply Chain Management • Oper. Value Process




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Preferred Providers

Storehouse Cost of

Invent. Value

• Spare Parts Management

• Supply Chain Management• Optimize Staffing

• Oper. Value Process

Inventory Value per

ERV

• ESMP/RCM

• Spare Parts Management

• Supply Chain Management


Stockouts • Planning and Scheduling• Spare Parts Management



Inventory Turns per

Year




Parts Expedited • Planning and Scheduling• Spare Parts Management



Change Management

KPI Name CMS Processes Related ProcessesKey Personnel Roles

and Account.

• Knowledge Management• Optimize Staffing


• Succession Planning• TeamShare

• Performance Eval.• Training Program

Maintenance Training • Knowledge Management

• Operator Performed Maint.• Optimize Staffing• Roles, Accountabilities, Deliv.



CMS Assessment Score • CMMS• Knowledge Management• ESMP/RCM



• Planning and Scheduling• Spare Parts Management• Supply Chain Management

• Quality Assurance Program• Risk Based Inspection



•

CMS for New Projects• CVP-TAR

• Succession Planning• TeamShare• Performance Eval.

• Training Program• Oper. Value Process





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KPI Name CMS Processes Related ProcessesAvailability

Improvement



• Spare Parts Management• CMS for New Projects

• TeamShare• Training Program

• Health, Safety, Env.• PSIM


Reliability

Improvement

• ESMP/RCM




• TeamShare



Maint. Utilization

Improvement


• Spare Parts Management• Supply Chain Management

• Campaign Maintenance


• TeamShare

Schedule Compliance

Improvement

• CMMS




• TeamShare• Training Program

Mean Time To Repair

(MTTR)

• Knowledge Management• Planning and Scheduling

• Spare Parts Management• Quality Assurance Program• Optimize Staffing


MTBF for Critical

Equipment

• CMMS• Knowledge Management• ESMP/RCM



• Planning and Scheduling• Quality Assurance Program• Risk Based Inspection


• Performance Eval.• Training Program• Health, Safety, Envir.

• PSIM




Page 302 of 324


Appendix D

Glossary of Terms

Adequate Planning Process

A systematic process that includes developing step by step instructions

required to complete a specific scope of work. These instructions areusually contained in the form of a Work Order. The Planning Process also

includes estimating the length of time required to complete the work scope based on the amount of manpower to be assigned to the job. The planning process also includes prior acquisition and readying of spare parts,

materials, special tools, and equipment. To be considered Planned, work must also be prioritized and then scheduled for a precise time at least 24

hours prior to commencement.

Asset Register

Normally referred to as the MEL, the Asset Register is a register of equipment items generated during the design phase of a project andcontains specific information on manufacturer, vendor, specifications,

classification, etc. See Master Equipment List.

Availability

The likelihood that an item is ready to provide a given function in a predetermined operational context and stated support conditions.PURPOSE OF METRIC: Availability takes into account planned and

unplanned downtime. Reliability minus Availability equals the amount of intentional downtime due to planned intrusive maintenance activities.

Availability is measured to drive elimination of intrusive maintenanceinspection activities.

Backlog

A list of Work Orders that are approved, planned, and prioritized andawaiting scheduling and execution.

Bill of Materials (BOM) (TAR)

The list of components and parts for an asset, usually structured in

hierarchical layers from gross assemblies to minor items.






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The number of planned repair work orders completed from theturnaround schedule divided by the total number of work orders on the

schedule.

Component (Child) Tag

The object immediately below a given Parent tag in the CMMSdatabase equipment hierarchy. Component/Child tags are typically the

lowest level of equipment items recorded in the CMMS database. SeeParent Tag.

Conceptual Development (TAR)

The phase of the turnaround where the scope of the turnaround isdefined. It usually begins with the assignment of the turnaround

coordinator and the formation of the core team, and ends with thedevelopment of a preliminary worklist and a milestone schedule.

Concurrent Engineering (TAR)

A process whereby engineering, production, and other necessaryfunctions proceed with their work in parallel, rather than sequentially

and thus complete their activities sooner.

Condition Monitoring (CM)

The ongoing surveillance of a process and its associated equipment to

ensure precise performance and to detect abnormalities indicative of an impending failure or that the equipment has already failed.

Condition monitoring includes the human senses and equipmentdiagnostics to monitor and evaluate rotating machinery and fixed

equipment conditions continuously or periodically during operation.Condition monitoring tasks can nearly always be performed while the

equipment is in service. Condition monitoring is also known asSurveillance Monitoring. The most sensitive condition monitoringtechniques use specialized instruments to monitor the physical

condition of the process equipment. See Predictive Maintenance.

Condition-Based Maintenance (CBM)

Maintenance activity (i.e. repairs) to prevent equipment failure that istriggered by actual equipment conditions rather than a predetermined

interval of time. See Prompted Corrective Maintenance.

Contingency (TAR)






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Maintenance that can be and has been postponed from a schedule.

Deterioration Rate

The rate at which an item approaches a departure from its functional

standard (i.e. failure).

Diagnostics

An area of analysis tat involves the use of measured equipment

performance factors to determine the need for maintenance of aspecific piece of equipment.

Downtime

The period of time during which an item is not in a condition to

perform its intended function. Downtime costs include maintenancecosts and value of production loss.

Downtime Costs

Downtime Costs = Maintenance Costs + Value of Production Loss indollars

Due Date

The date entered in the planned maintenance schedule by which amaintenance task must be completed. Dependent on prioritization of

the planned work order.

Dye Injection

A technique involving the tracking of dye particles injected into a piece of equipment to determine if cracks or other imperfections exist.

Emergency Maintenance

Maintenance activity (i.e. repairs) to address critical equipment failure,which necessitates urgent maintenance action. This activity is not

triggered by equipment conditions or an interval of time. See alsoBreakdown Corrective Maintenance.

Environmental Critical Equipment




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Equipment where failure results in a significant impact on theenvironment.

Equipment Configuration

List of assets usually arranged to simulate the process, function, or

sequential flow.

Equipment History

A chronological list of equipment defects, repairs, and costs that is

stored within the CMMS for each piece of equipment and is used for data analysis purposes to identify and correct chronic problems and

make economic decisions on the equipment.

Equipment Specific Maintenance Plan (ESMP)

A streamlined reliability analysis technique used to develop anoptimized proactive maintenance program to meet predeterminedfacility reliability and availability goals. See also Reliability Centered

Maintenance and Reliability Analysis.

Expert System

Decision support software with some ability to make or evaluatedecisions based on rules or experience parameters incorporated in thedatabase.

Factory Acceptance Test (FAT)

A portion of the quality assurance program that dictates minimum

acceptable performance standards for parts that are tested prior toshipping to the facility.

Failure

Termination of the ability of an item to perform its required function.For consistency in tracking equipment reliability and other

performance indicators, specific definitions may need to be developedthat explains exactly what constitutes an equipment failure for each

equipment type. See also Breakdown and Defect.

Failure Analysis

See Root Cause Failure Analysis.




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Failure Coding

Indexing of root causes of equipment failure on which correctiveaction can be based (e.g. lack of lubrication, mal-operation, material

fatigue, etc.).

Failure Mechanism

The physical or chemical process that caused an equipment failure.See also Failure Modes and Effects Analysis.

Failure Modes and Effects Analysis

An assessment of the common types of equipment failure and thecorresponding effects of these failures on safety, environment,

production, and operator response. Usually performed as part of areliability analysis (ESMP/RCM) study.

Failure Rate

The frequency of failures or the rate at which failures occur over a unitinternal of time (e.g. x failures per day, week, month, or year). Is the

inverse of the Mean Time Between Failures (MTBF).

Fault Tree Analysis

A specific type of root cause failure analysis (RCFA) involving

deductive reasoning and graphical detail of the different ways in whicha particular system can fail with corresponding probabilities of failure.

Ferrography

A technique describing the separation of particulate contamination

using a magnetic field. Technique is primarily limited to magnetic particles.

Floating Date Strategy (TAR)

An approach where there is a conscious decision to extend the runlength of the process unit, but the turnaround team is prepared for a

turnaround in the event that unit problems develop.

Front End Loading (FEL) (TAR)

The process of defining a turnaround. Turnaround definition includes

defining what will be done, how it will be done, who will do it, when it




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will be done, and what resources will be required to complete theturnaround.

Function Test

Testing of a device or piece of equipment to determine if it is

performing or capable of performing its required function to the levelof service needed. Most function tests can be performed without

affecting the operation of the associated equipment. If the device failsthe function test, a prompted corrective work order should be raised toreturn it to an available condition.

HSE

Health, Safety, and Environment.

Inherent Availability

The period of scheduled time for which an asset is capable of performing its specified function, expressed as a percentage. See

Availability.

Job Slotting (TAR)

The process in which a job is classified within a cost or time bracket.Classification is usually guided by judgement, but judgement may beguided by comparison with benchmarks, typical common jobs for

which actual cost is known to fit within the bracket.

Just-In-Time (JIT)

JIT has as its goal the elimination of all waste - wasted space, labor,materials, inventory, and movement. Anything that does not add value

in the eyes of the customer adds waste. The core concept of JIT is thereduction of cycle time. Focusing on time to process and reducing thistime has the effect of reducing inventory, delays, labor, and space.

Laydown Area (TAR)

An area set aside during the turnaround period for the storage of

equipment and materials prior to their use.

Life Cycle Cost

The total cost of an item throughout its life including design,

manufacture, operation, maintenance, and disposal.




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Main Tag

A code description of a unit of maintenance, grouping together

equipment or plant for maintenance purposes in the CMMS. Normallyassigned to a major item of equipment. See also Parent Tag and

Component (Child) Tag.

Maintainability

The probability that a failed item will be restored to operational

effectiveness within a given time period when a specific repair procedure is used. Refers to the accessibility, availability of parts, and

the planning and scheduling of maintenance activities for a particular piece of equipment.

Maintenance

Includes all necessary actions for retaining and restoring facilityequipment and systems to a desired operational state.

Maintenance Cost (as %,ERV)

Annual Maintenance Cost =

MLC + MEC+ PLC + OEMPC + OPC + ECFC + FMC x 100%ERV

Target = 1.5%

ERV= Equipment Replacement Value

MLC = Maintenance Labor Cost - From all external sources, i.e.,original equipment manufacturer (OEM), other contract labor,

machine-shop labor

MEC = Maintenance Equipment Cost - Equipment such as cranes,

vacuum trucks, scissor lifts, large tools, etc. which are leased or rented for the purpose of performing maintenance and charged back

to the maintenance budget

PLC = In-house plant maintenance labor cost, including cost of supervision

OEMPC = Original equipment manufacturer (purchased)maintenance related parts and supplies costs




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OPC = Outside (i.e., non-OEM) purchased maintenance related partsand supplies costs to include tools and consumables purchased for

the purpose of performing maintenance

ECFC = Maintenance related fluid costs such as engine compressor fluids - includes costs for lube oil, glycols used as coolant, any other

additives, etc. (Process chemicals used for gas treating such as TEGused in dehydration, Amine used for acid gas removal, or Glycol

used as heat medium are not included in this category as they are notconsumed by maintenance related activities)

FMC = (Pro-rated) future maintenance cost - includes costs tooverhaul/zero-hour equipment pro-rated for time period covered

(e.g., if an overhaul is estimated to cost $100,000 every 5 years, theannual pro-rated cost would be $20,000)

PURPOSE OF METRIC: Maintenance Cost is a direct measure of the

maintenance program's effectiveness in controlling manpower andrepair part costs.(Note: The bp Exploration and Production Maintenance Network

utilizes this metric to measure success and drive behavior in support of its goal of reducing maintenance cost by 10% relative to 1998

maintenance spending.)

Maintenance Job Plans

A detailed description of how to implement or undertake the

maintenance task.

Maintenance Policy

A set of principles for guiding the decisions for maintenancemanagement. The Common Maintenance Strategy (CMS) is the

current maintenance policy for Exploration and Production facilities.

Maintenance Schedule

List of planned maintenance based on priority in a designated period

of time.

Maintenance Shutdown

See Turnaround.

Maintenance Tasks




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The specific actions or activities performed to prevent or reduce theconsequences of equipment failure. For example: function testing,

component replacement, oil analysis, vibration monitoring, andoperator/technician surveillance.

Master Equipment List

A register of items in the CMMS usually with information on manufacturer,

vendor, specifications, classification, costs, warranty, and tax status. The list of all Main, Parent, and Component Tags.

Mean Time Between Failures

Measure of the total cumulative operating time of an item or group of itemsdivided by the total number of failures within the time period. MTBF is used to

measure the reliability of items that can be repaired (e.g. pumps, control valves,etc.).

Mean Time Between Maintenance

Measure of the frequency of scheduled and unscheduled maintenance for a piece of equipment. See also Mean Time Between Failures.

Mean Time To Failure

The average time it takes for an item to fail after put into service. MTTF is usedto measure the reliability (i.e. life expectancy) of items that can not be repaired

(e.g. electronic components, light bulbs, etc.).

Mean Time To Repair

The average time to perform a defined maintenance action. See alsoMaintainability.

Nameplate Rate

The instantaneous capacity of the process unit (in millions lbs/year).

Network Schedule (TAR)

A schedule incorporating the dependencies between the activities in aturnaround. As a precedence diagram, each activity is defined in terms of the

activities that must precede them before they can start.

NDT






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A comprehensive examination and restoration of an item to anacceptable condition.

Parent Tag

The item immediately below the Main Tag in the CMMS database

equipment hierarchy. It is related to a main tag by its effect in theoperation of the process system (e.g. if a main tag is shut down, then

all equipment related to the main tag will also shut down, and hence, be available for maintenance, if required).

Permit To Work (PTW)

Written permission for specific work activities to be conducted withina specific area and for a designated time period. Permits are controlled

by the Operations department, which verifies the site preparation andsafety aspects before the permit is issued.

Planned Corrective Maintenance

A portion of planned maintenance that involves the implementation of equipment modification to improve equipment reliability or return the

asset to a condition such that it is able to fulfil its operationalrequirements. The maintenance activity could also reduce the time or

effort required for other preventive or breakdown maintenanceactivities. See Planned Maintenance.

Planned Maintenance

Planned Maintenance Work is defined as maintenance work that has beenthrough an “Adequate Planning Process” prior to work commencement.

See also Adequate Planning Process.

Planned Preventive Maintenance

Combines both time-based and condition-based regimes to prevent

anticipated failures and to keep equipment functioning. The planningand scheduling of these tasks is to be implemented immediately prior

to the anticipated increase of the conditional probability of failure. SeePreventive Maintenance.

Post-Startup (TAR)

This phase includes activities after the process startup (e.g.demobilization, clean-up, and material and waste disposal).




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Pre-Shutdown (TAR)

This phase encompasses the activities that occur prior to the processshutdown (e.g. pre-fabrication, construction of temporary facilities,

and parts kitting).

Preventive Maintenance (PM)

Preventive or Predictive Maintenance performed at predeterminedintervals and intended to reduce the likelihood of a functional failure.Also known as Preventative Maintenance.

Predictive Maintenance (PdM)

Predictive Maintenance: Use of measured physical parameters against

known engineering limits for detecting, analyzing, and correctingequipment problems before a failure occurs. Usually considered a

subset of condition monitoring that typically includes more technicalmonitoring equipment and instrumentation and may also requireinterpretation of the results by a qualified technician or engineer.

Examples include vibration analysis, sonic testing, dye testing,infrared testing, thermal testing, coolant analysis, tribology, and

equipment history analysis. See also Condition Monitoring.

Priority

The relative importance of a single job in relationship to other jobs

usually classed into categories with ranking based on safety,environmental impact and operational needs.


All maintenance activities performed prior to equipment failure with

the intention of improved equipment reliability. Includes conditionmonitoring, predictive maintenance, preventive maintenance, andfunction testing.

Process Block Flow Diagram

A diagram of the major functional subsystems for the process.

Procurement Cycle Time

The total elapsed time from the initiation of a parts requisition(manually or computer generated) until receipt of the part on-site.




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Production Critical Equipment

Equipment where failure results in immediate loss of production. The bpExploration and Production Maintenance Network measures Reliability

and Availability of Production Critical Rotating Equipment to ensure thatthe efforts underway to reduce maintenance cost do not adversely effect

equipment availability and ultimately plant throughput. With proper management, equipment availability can actually be increased as

maintenance cost is reduced.

Production Loss

Facility product yield not achieved.

Program Evaluation and Review Technique (PERT) (TAR)

This technique allows one to deal with uncertainty of the duration or

costs of the activities in the turnaround plan. Using PERT, one candefine a most probable duration, an optimistic duration, and a

pessimistic duration for each activity. Statistical approximations are

then used to calculate the expected duration for each activity and for the entire turnaround.

Prompted Corrective Maintenance

Maintenance activity (i.e. repairs) to address equipment failure that istriggered by actual equipment conditions rather than a predetermined

interval of time. See Condition Based Maintenance.

Quality

The conformance to requirements.

Quality Assurance

The plans, standards, and methods by which the work will be

controlled to assure satisfactory quality.

Quality Control

The actions that assure acceptable quality.

Quality Product

The production output that meets acceptable standards for product

quality.




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Reactivity (Planned vs Unplanned Maintenance)

PURPOSE OF METRIC: % Planned work is a measure of the amount of

time the work force spends working on non-emergency work. % Plannedwork also takes into account the effectiveness and utilization of the

organization’s planning and scheduling process. The Planned Work metricis designed to drive maximum effective utilization of the operations and

maintenance workforce. Effective utilization is accomplished throughsystematic deployment of the workers to the highest priority work available on any given day.

Reliability

The likelihood that an item will operate without failure for a stated period

of time under stated normal operating conditions. Sometimes expressed asthe mean time between failure (MTBF).

PURPOSE OF METRIC: Reliability is a direct measure of unplanneddowntime. Reliability is measured to drive elimination of recurringunplanned downtime usually caused by unintentional equipment break

down. The Reliability KPI can be used to target specific equipment whereRoot Cause Failure Analysis should be deployed to improve equipment

performance by eliminating the cause(s) of recurring equipment failure.


The process of identifying maintenance of significant items and

classifying them with respect to the effects of failure on safety,environment, production, and repair costs. Potential failure modes of

each item are identified and appropriate proactive maintenance actionsare assigned to counter them. Processes with the CMS that are

considered part of the reliability analysis program are ESMP/RCM,RCFA, and RBI.

Reliability Centered Maintenance (RCM)

Reliability Centered Maintenance: the optimization of maintenanceintervention and tactics to meet predetermined reliability goals.

Included within an RCM study are FMEA and the development of a proactive maintenance program to address functional failures. See

also Failure Modes and Effects Analysis, Equipment SpecificMaintenance Plan, and Reliability Analysis.

Remedy Code




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An abbreviated list of codes used in failure analysis, which describeshow the root cause of failure was rectified (e.g. replaced, adjusted,

etc.).

Repair

To restore an item to an acceptable condition by the renewal,replacement, or mending of worn or damaged parts.

Resource Scheduling (TAR)

The development of the turnaround plan and schedule with regard tothe following essential resources: materials, people, equipment, and

time.

Risk Analysis

An assessment of the likelihood (probability) of equipment failure andthe associated consequence of that failure.

Risk Based Inspection

The methodology that uses risk analysis to optimize the managementof inspection programs for fixed equipment and piping. See also

Reliability Analysis.

Root Cause Failure Analysis

A study of failures to analyze root causes, develop improvements, and

eliminate or reduce the recurrence of these failures. Also called RCFAand failure analysis.

Run To Failure

A policy where no proactive maintenance is scheduled for a piece of equipment. The item is repaired when it no longer meets its functional

standard.

Safety Critical Equipment

Equipment where failure results in a significant impact on safety.

Schedule Compliance




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This is, the number of scheduled jobs actually accomplished during the period covered by an approved schedule; also the number of labor

hours actually worked against a planned number of hours scheduled.

Schedule Density (TAR)

The percentage of weekly labor hours worked on non-critical pathactivities.

Scheduled Downtime

Intentional equipment outage planned for a predetermined time.

Scheduled Maintenance

Any maintenance that is planned and prioritized to be performed in a predetermined time.

Scope (TAR)

The intended capabilities of the turnaround. Scope is distinct fromdesign. The design is intended to implement the scope, but changes in

design may be necessary to complete the scope.

Scope Change (TAR)

A change in task objectives, plans, (turnaround or field work) schedule

that results in a material difference from the terms of an approval to proceed previously granted by a higher authority. Under certain

conditions, change in resource allocation may constitute a change inscope.

Scope Freeze Date (TAR)

The date at which the final turnaround execution worklist isestablished. Activities added to the worklist after this date typically

have a more rigorous approval process and are categorized separately(e.g. add-on jobs, X jobs, etc.).

Service Level

A measure of performance of the procurement function, normally

expressed as the ratio of stockouts to total stores issues.

Servicing




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The replenishment of consumables required to keep an item inoperating condition.

Shutdown Maintenance

Maintenance activities done while the asset is out of service.

Typically refers to maintenance during a turnaround.

Stock Keeping Units (SKUs)

Number of storeroom line items with a planned stock level of one or

more units.

Storeroom Accuracy

The total number of storeroom SKUs counted with 100% accuracydivided by the total number of storeroom SKUs counted.

Storeroom Inventory

Average value of stores stock carried on a plant’s books to supportmaintenance operations. Includes capital spares maintained as safety

stock.

Storeroom Issue Fill Rates

The total number of storeroom issue requests (manual or on-line) filled

with 100% divided by the total number of storeroom issue requests.

Storeroom Turnover

Annual value of storeroom materials used divided by the average of storeroom inventory.

Surveillance Monitoring

See Condition Monitoring.

Tag Number

A positional reference for an equipment’s process location.

Time-Based MaintenanceThe maintenance regime of periodically inspecting, servicing, andreplacing worn or damaged components to prevent failure and




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resulting equipment unplanned downtime. See PreventiveMaintenance.

Tribology

A term referring to the design and operating dynamics of the bearing-

lubrication-rotor support structure of machinery; includes lubricatingoil analysis, spectrographic analysis, ferrography, and wear particle

analysis.

Turnaround

A period of time during which a plant, department, process, or asset is

removed from service specifically for maintenance. Usually refers tounspared assets or processes such that the production rate is affected.

Turnaround Execution (TAR)

The time when the primary turnaround work activities occur. It is thework performed after the process has been shutdown and before the

process has been started up to meet the turnaround goals.

Turnover Sequence (TAR)

The process involved in the transition between activities, functions, or personnel involved in the turnaround.

Unplanned Maintenance

Maintenance work that is accomplished without the use of an adequate planning process (see definition of “adequate planning process”)

Unscheduled Downtime

Unintentional equipment outage on an unplanned basis, usually as a resultof equipment breakdown, running repair, unplanned work, or corrective

work.

Value Added Work

As part of the Work Management process, ‘value added’ work is acomprehensive term referring to ‘proactive’ activities including:

q Wrench Time (time on tools)q Permit to Work Controlq Isolation/De-isolation of Equipment

q Equipment Function Testing






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NOTES