Good Asset Information Management Practices … Valentijn de Leeuw and Florian Gueldner ARC WHITE PAPER OCTOBER 2012 Good Asset Information Management Practices Improve Reliability

By Valentijn de Leeuw and Florian Gueldner

ARC WHITE PAPER

OCTOBER 2012

Good Asset Information Management

Practices Improve Reliability and Reduce

Operational and Safety Risks

Executive Summary ...................................................................... 3

Analyzing and Managing Operational and Safety Risks ...................... 5

The Potential of Accurate Asset Information ..................................... 8

Use Case: Data-Centric Operation .................................................. 9

Use Case: Immersive Operator Training ........................................ 14

Recommendations ...................................................................... 16

References ................................................................................ 16

VISION, EXPERIENCE, ANSWERS FOR INDUSTRY

ARC White Paper • October 2012

2 • Copyright © ARC Advisory Group • ARCweb.com

Number of Major Accidents in EU-15, 1996-2004

Reporting in EU’s Major Accident Reporting System (Christou, 2008)

Trend in World-Wide Refinery Material Damage Costs In Millions of Dollars per Year (Schouwenaars)

0

100

200

300

400

500

600

700

800

1965 1970 1975 1980 1985 1990 1995 2000

DA

MA

GE

(m

illio

n $

/yea

r at

200

0 p

rice

s)

Raw data

5-year average

Linear trend line


Copyright © ARC Advisory Group • ARCweb.com • 3

The Cost of Accidents and Lack of

Reliability

The combined cost of accidents and

incidents and lack of reliability could be

as high as one to three percent of

turnover on an annual basis, and in

addition a cost in the range of $500

million to five billion per major disaster.

For a super oil major, this would

happen on average every 20 years.

Executive Summary

Corporate performance for process manufacturers is typically measured

against criteria such as earnings and margin. However, other metrics such

as regulatory compliance, process and worker safety, or sustainability re-

cently have gained more importance as performance criteria. Influencing

the latter indicators implies costs, but also offers benefit opportunities. This

white paper looks at the need for enhanced operational and safety man-

agement measures via the correlation between correct and up-to-data asset

information and reduced operational and safety

risks. After that, available solutions with the poten-

tial to improve current industry practice are dis-

discussed.

The costs of maintenance and process safety im-

provement measures are well known, but their

impact on reliability and process safety are difficult

to grasp because they are correlated and because

accidents and incidents are infrequent and occur at

irregular intervals. Incidents and accidents are

viewed as operational and safety risks, an independent statistical pheno-

menon. This paper shows that the combined cost of accidents and incidents

and lack of reliability could be as high as one to three percent of turnover

on an annual basis, and in addition a cost in the range of 500 million to five

billion dollars per major disaster. For a super oil major, this would happen

on average every 20 years, in a range of every four to 100 years depending

on the safety and reliability practices.

Initiatives to improve safety and availability are strongly and positively

correlated. Occupational safety improvement measures have little impact

on process safety, but process safety improvement measures have a positive

impact on occupational safety. Since the sources of most safety and reliabil-

ity issues are human, to be effective, reliability and process safety measures

need to integrate asset management and HSE with the reliability of human

behavior and of executing processes. For effective and efficient reliability-

centered maintenance planning and execution, asset information must be

accurate and up-to-date. Any maintenance activity or plant change must be

recorded and be made available to all personnel. This allows decisionmak-

ers to concentrate on the analysis of the problem, knowing that they are

already working with correct (as-built or as-maintained) data.



Reliability and Process Safety

Require Accurate Asset

Information Management

To be effective, reliability and safety

measures need to integrate asset

management and HSE with the

reliability of human behavior and of

executing processes. For effective

and efficient reliability-centered

maintenance planning and

execution, asset information must

be accurate and up-to-date

The Siemens’ COMOS asset data hub for engineering, maintenance and

operations enables this real-time visibility on asset state and health. The

availability of up-to-date asset information is also

paramount to decision making in emergencies and

reducing potential damage. Within COMOS, existing

3D models of installations are kept up-to-date and

can be used for immersive operator training in a safe

environment. The technology reduces training time

and cost and improves operational readiness. 3D

viewing also supports maintenance and operations.

Business benefits include reduced operational and

safety risk, increased productivity of engineering,

maintenance and operations, faster operational

readiness of assets and operations personnel, and

better regulatory compliance. To illustrate this, two

use cases will analyze the cost and management of operational and safety

risks.

ARC's Asset Information Management Solution Map

!



Correlation Between Financial

Performance, Risk, Safety and Asset

Reliability

• Asset reliability and process safety strongly

impact financial performance.

• The average financial impact of major

industrial accidents is strongly

underestimated

• The risk of major industrial accidents can be

greatly reduced by maintenance and the

establishment of a safety culture.

• Safe and reliable operations are compatible

with effective cost management.

• Occupational safety improvement has strong

impact on injuries and fatalities but not on

major accidents. Process safety needs to be

addressed in addition to occupational safety.

• To be effective, an integrated approach to

safety, reliability and human behavior is

required.

• Examples of measures are up-to-date asset

information for operational, maintenance

decisions and operator training.

Analyzing and Managing Operational

and Safety Risks

Many companies today are using metrics such as regulatory compliance,

process and worker safety, or sustainability and environmental footprint as

performance criteria in addition to purely financial metrics. Influencing the

latter measures implies costs, but also contains

benefit opportunities. For example, benefits of

energy efficiency improvements as part of sus-

tainability initiatives offer a quick payback on

investments (Farrell and Remes, 2008). The

costs and benefits of sustainability improvement

metrics are likely to evolve over the years, but

are fairly stable can be predicted with confi-

dence.

Process safety and asset availability improve-

ments have a direct impact on sales. Incidents,

accidents and unwanted shutdowns, instead

have the opposite effect, and in the worst case

they can cause injuries, fatalities, damage to

environment and assets, with the associated cost

and negative impact on the brand. However,

accidents and incidents are infrequent and occur

at irregular intervals. They are viewed as oper-

ational and safety risks that can be managed,

but cannot be reduced to zero.

Human Error and Safety

The ASM Consortium estimates that about 40 percent of unwanted shut-

downs in the process industry are attributed to equipment failure, 20

percent to failing to follow processes, and around 40 percent to human er-

ror (ASM Consortium, cited by O’Brien, 2010)). Investigations by Total on

the impact of human behavior on process safety, together with comparisons

with best practices from the nuclear industry and airlines, indicate that the

risk of human error can be reduced by a factor of at least 100 by applying

rules and principles (Van Roost, 2010), and by establishing a safety culture

(Ghosh and Woll, 2007). Their analysis of a series of industrial accidents

and near misses reveal that causes often include human error.



Efforts to improve occupational safety have strongly reduced the number of

injuries and fatalities in recent years, but have had little impact on major

industrial accidents, which have declined only very slowly over time

(Schouwenaars, 2008;, Haesle et al., 2009). These facts corroborate the find-

ings of Total and others that occupational and process safety should be

treated separately.

The EU has recorded a frequency of about three major accidents per 1000

industrial establishements per year (Christou, 2008) with at least one fatali-

ty and more than €2.5 million worth of damage. Major disasters, such as

the Toulouse, the Texas Refinery or the Buncefield explosions, are at anoth-

er scale: the average cost are $2 billion and range from $500 million to $5

billion, with a record of at least $40 billion reported

for the Deepwater Horizon spill in the Gulf of Mex-

ico. For a typical super oil major with a turnover of

$300 billion and an operating margin of eight per-

cent or $24 billion, the likely frequency of a major

accident according to the EU definition is around

three accidents every two years. ARC estimates that

major disasters have a much lower frequency, pos-

sibly one every 20 years, for this size of company

this comes with an average annual costs of around

$100 million or a few percent of profit. The frequen-

cies for major accidents and disasters vary by a

factor of at least five depending on the safety culture and reliability practic-

es of the company and could be as high as a major accident every two

months, or a major disaster every four years. A typical super oil major

could lose money a given year in the worst scenario, as happened to BP in

2010. For a smaller oil company, the worst case scenario would create such

a loss that the company would probably not survive.

Processes and Asset Reliability

Since the correlation between expenses for maintenance and reduction of

the number of accidents is not obvious, the temptation exists to reduce

maintenance and inspection costs to improve profitability. A McKinsey

study (Laurens and Van Der Molen, 2009) reported that world class oil &

gas producers have 95 to 98 percent asset availability even for older assets.

At the same, they make the right decisions about cost reduction, avoiding a

downward spiral in reliability performance. McKinsey found that world-

class companies apply preventive and condition-based maintenance ap-

proaches, and flawlessly execute plans and processes. A realistic

40%

20%

40%

EquipmentFailure

NotFollowingProcesses

HumanError

Sources of Downtime and Slowdown



improvement in plant availability is one to three percent while lowering

maintenance costs by 25 to 30 percent according to Williams (2001). This

translates to one to three percent of turnover in supply-constrained mar-

kets.

Correlation of Causes Calls for Integration of Measures

Asset reliability and process safety improvement measures both have an

important impact on financial performance and risk. Initiatives to improve

safety and availability are strongly and positively correlated. Since the

sources of most safety and reliability issues are human, to be effective, re-

liability and safety measures need to integrate asset management, HSE, and

human behavior.

Measures to Reduce Risk and Improve Availability

Although statistics for incidents, accidents and shutdowns are readily

available, the advent of such an event always seems a surprise. The human

mind can assess those risks, but intuitive estimations and decisions regard-

ing risks are likely to be incorrect (Kahnemann, 2011; Tversky and

Kahneman, 1974).

Management does have the possibility to take the

right decisions: the risk and the staggering average

financial cost of accidents and unwanted downtime

can be strongly reduced by relatively small efforts

and investments. In a comparison to the aviation

industry, Total showed that risks of human error

could be reduced by relatively simple means such

as dividing responsibilities among two people and

double-checking decisions. In addition, operation-

al and safety risks can be reduced considerably by

having an accurate picture of the assets and their

health.

Up-to-date asset information is paramount to making correct decisions in

maintaining assets. It is equally important when training people on

processes and behavior. Both appropriate behavior and up-to-date know-

ledge become critical when making decisions in emergency situations.

Location, year Estimated cost in

billions of dollars

Piper Alpha, 1988 3.4

Enschede, 2000 0.45

Toulouse, 2001 1.8

Skikda, 2004 >3

Buncefield, 2005 2

Texas City, 2005 1.5

Deepwater Horizon, 2010 40

Cost of Major Industrial Accidents



Benefits of Integrated Engineering

and Operations

The usage of a single, consistent and up-to-

date database for design, engineering,

construction, handover, operations and

maintenance in conjunction with 3D plant

visualization can help reduce operational risk,

increase productivity, accelerate operational

readiness, and improve regulatory compliance.

The Potential of Accurate Asset

Information

The use of a single, consistent and global data hub such as COMOS, kept

up-to-date at all times by all disciplines, creates instantaneous and complete

transparency of information for each plant object and for all parties. Using

configurable workflows, the different disciplines can collaborate using a

structured process. As a result,

• Plant engineering and construction is of higher quality, and time to

operational readiness is shortened significantly.

• The documentation provided at handover is an up-to-date ‘as-built’

asset database, that, when maintained, becomes the ‘as-maintained’ da-

tabase. Reducing engineers’ time to enter and find information delivers

substantial productivity improvements.

• The regulatory obligation of up-to-date plant documentation is fulfilled

at all times.

• In urgent situations, reliable decisions can be made based on up-to-date

plant information. Faster and more appropriate reactions reduce opera-

tional risks considerably.

With COMOS Walkinside’s 3D virtual reality viewer,

3D data developed during the engineering stages can

be reused through all lifecycle phases of the plant in

operations, maintenance planning, simulation and

workforce training. Specifically designed for opera-

tions, the tool is easy to use for operators and

engineers, providing a fast and realistic rendering of

complex models, creating a perception of being

present on site. Typical use cases include project

progress reviews, problem solving sessions, off-site

immersive training, spatial context for engineering and maintenance tasks,

and spatial analysis and decision support during emergencies.



Immersive Operator Training with COMOS Walkinside

The immersive training experience strongly reinforces learning objectives,

reduces traditional on-site operator training, and has proven to enhance

operational readiness of the operators.

Use Case: Data-Centric Operation

Modern Asset Management during Operate-Maintain

Phases

Asset management is gaining importance in the process industries as a

process to determine the strategy for maintaining and modernizing assets.

The goal is to ensure that these assets provide the production capability

required while lowering costs over the asset lifecycle. Asset management

improves performance, for example by coordinating debottlenecking and

maintenance actions as well as interactions between assets. An asset ma-

nagemen solution can support a decision to clean a heat exchanger limiting

production in summer, in the spring rather than in autumn and to delay an

expense. Another example is that changing a control valve after an ad-

vanced process control (APC) project may destroy the economic benefits of

the APC.

One of the most important aspects of asset management is providing accu-

rate and contextual information to users. As asset management uses



COMOS

COMOS is Siemens’ solution for plant engineering,

operations and maintenance from process design to

decommissioning in the process industries. COMOS

supports process engineering, P&ID, 3D, electrical,

instrumentation and control engineering. In addition,

COMOS supports operations management, e.g. with

document management including workflow and approval

processes or the maintenance management with risk

evaluation for a risked-based maintenance approach.

With its object-oriented approach and single database

for all lifecycle phases and disciplines, COMOS provides

instantaneous and complete transparency of information

related to a plant object for all stakeholders.

Configurable workflows enable different disciplines and

roles in engineering and operations processes to

collaborate in a structured manner.

Based on these capabilities:

• Engineers have direct access to information changed

by colleagues in other disciplines. This can increase

the degree of parallel engineering.

• Object-orientation enables modular engineering.

Applied throughout the enterprise, it improves

standardization that generates time and cost

benefits, facilitates cooperation and increases

flexibility in personnel assignment

• The time to find information is reduced substantially

which leads to productivity improvements.

• Operational readiness can be predicted more reliably.

• The regulatory obligation of up-to-date plant

documentation is fulfilled at any point in time.

• In urgent situations reliable decisions can be made

on on-line plant information. Faster and more

appropriate reactions reduce operational risks

considerably.

multiple sources and tools, such as equipment documentation, engineering

data, maintenance history, real-time data, root cause analysis and reliability

centered maintenance tools, work plans or spare parts availability.

Operations need to make decisions in real-time

to operate plants in an optimal way and accord-

ing to a production schedule. They need access

to the state and health of parts and components

of the plant to make the right decisions. They

need to know if a pump has been replaced or

not, and if this allows them to increase

throughput and to which level. They need to

know which parts of the plants are locked out

for maintenance. In case of trouble or urgency

they need to take reliable decisions to avoid

damage or spills. Maintenance is subprocess of

asset management that has the goal of restoring

the health of an asset.

The Most Frequent Application:

Document Management

Engineering, procurement and construction

companies (EPC) do all of their engineering

work with computer-aided software, and the

same is true for their subcontractors. When a

plant is commissioned, in a majority of cases,

documentation is handed over on paper.

Sometimes electronic versions of the docu-

ments are provided. However the owner-

operators do not benefit from the EPC’s engi-

neering system’s capabilities.

In practice, owner-operators often rely on doc-

uments for operations and maintenance.

Changes are documented as hand-written cor-

rections on printed documents. In the best case

electronic documents are updated afterwards.

This process is time consuming and error prone, information is regularly

out of date, and interactions between disciplines lead to unnecessary itera-

tions. Many engineering databases and systems do not have the

functionality to support operations and maintenance and, as a result, a

maintenance management system must b

tion, extracted from the hand

do debottlenecking, troubleshooting, or wants to embark on

tion or improvement project, the search for as

starts as input to the engineering systems. One can easily imagine the time

this takes and the risk of data losses this implies

The Road

Up-to-date

any time to

place that

rity measures, engineering and maintenance contractors, equipment and

other providers can all safely share the as

image of the plant,

after handover, during maintenance or operation. Instead of maintaining

documentation, the different players update data records, simplifying and

speeding up the process enormously.

Owner/Operators and EPCs Collaborate Effectively when Using the Same,

Owner-operators

sistent and modular engineering for all their refineries.

investment

workflow,

data, the usage of COMOS and the Petrobras workflow is mandatory for

every contractor. After h

by operations and maintenance personnel. For maintenance the use of a

single system with both maintenance functions and engineering data is

comfortable and easy to use.

Certain EPCs,

ing jobs, have also understood the benefits of using a single, consistent and

up-to-date engineering database that enables

modules. They explain the benefits of using such sys

ARC White Paper

Copyright © ARC Advisory Group • ARCweb.com •

maintenance management system must be primed with ‘as

tion, extracted from the hand-over documents. When the owner needs to

do debottlenecking, troubleshooting, or wants to embark on

tion or improvement project, the search for as-built and as-maintained data

as input to the engineering systems. One can easily imagine the time

and the risk of data losses this implies.

Road Less Traveled: Data Centric Operation

e plant data for operations and maintenance can be provided at

any time to any user of a platform such as COMOS, provided

that guarantees that data are kept current. With appropriate IT sec


other providers can all safely share the as-built and as-maintained data

image of the plant, whether it is before or during construction, before or



up the process enormously.

Owner/Operators and EPCs Collaborate Effectively when Using the Same, Consistent Asset Information

operators such as Petrobras have understood the benefits from co

sistent and modular engineering for all their refineries. Petrobras has made

investments in infrastructure, software, setting up a cross

and defining engineering modules. To ensure up


every contractor. After handover, the plant data ‘model’ is kept up



comfortable and easy to use.

Certain EPCs, in particular those that do specialized and complex enginee


date engineering database that enables the use of

modules. They explain the benefits of using such systems

White Paper • October 2012


e primed with ‘as-built’ informa-

over documents. When the owner needs to

do debottlenecking, troubleshooting, or wants to embark on a moderniza-

maintained data

as input to the engineering systems. One can easily imagine the time

ance can be provided at

as COMOS, provided a process is in

. With appropriate IT secu-


maintained data

it is before or during construction, before or



Owner/Operators and EPCs Collaborate Effectively when Using the Same,

as Petrobras have understood the benefits from con-

Petrobras has made

in infrastructure, software, setting up a cross-company

and defining engineering modules. To ensure up-to-date plant


the plant data ‘model’ is kept up-to-date



do specialized and complex engineer-


pre-engineered

to the client. If



the client has a preference for another engineering data format, they can

convert the COMOS information to the most common other formats with-

out compromising on the engineering tool.

ARC's Asset Information Management Solution Map

Data Centric Operation with Context from a 3D Plant Model

A 3D view of the equipment within its plant environment is a tremendous

help in conjunction with tabular, text or 2D information. Using COMOS

Walkinside, maintenance personnel can look up where the equipment is

located, if it is accessible from the floor, or if scaffolding or a crane is neces-

sary. The other way around, using the link with COMOS, the engineer can

directly access equipment characteristics, maintenance history, documenta-

tion, by clicking through on the equipment in the 3D view. Vice versa, if

the engineer was working with the engineering and maintenance database

he can click through to the 3D view of the equipment and see the spatial

context.

To improve productivity, companies in sectors such as oil & gas and other

process industries aim to reduce manual intervention and increase the pro-

portion of unmanned operation. For personnel that are not often on-site, a

3D view of the plant helps to understand where equipment is located and

how it is connected. This helps personnel to pre-plan interventions before

arriving on location.

!



Spatial View of Two Pumps in COMOS Walkinside

A 3D view can help to get a spatial perception of locations where work

permits are issued, and to assess the risk factors of those locations in terms

of presence of dangerous substances, hot surfaces or interactions with the

process.

If personnel are equipped with RFID chips, they can be located at a glance

in a 3D representation during an emergency and be guided to a safe loca-

tion.

2D Process Flow Diagram with Two Pumps (cyan)



Use Case: Immersive Operator Training

Immersion in a virtual environment (VE) is used in many different forms in

modern training because it has proven to shorten learning and strengthen

memorization. Within the context of computer-generated images, the VE is

called immersive (IVE) when the user or gamer can directly control the

avatar, giving him the perception he is part of the environment (Bailenson,

2008). To train field operators and maintenance personnel of industrial

process plants, it is more effective to provide them with a 3D simulation

environment in which they can virtually move around, make decisions on

their route and their interactions with equipment, than showing them a

movie.

A global player in upstream has decided to

train its field operators for a new Floating

Production Storage and Offloading vessel

(FPSO). These are offshore production facil-

ities that house both processing equipment

and storage for produced hydrocarbons.

They used COMOS Walkinside’s immersive

training simulator (ITS) for this purpose.

During a five-week period, operators

“walked around” a 3D graphical model for

eight hours each day with sufficient detail

and realistic colors to create the perception

of reality. The primary purpose was to fa-

miliarize themselves with their future work

environment to know where on board they

are located, where to find equipment and

how to go there efficiently. A second pur-

pose was to teach them to operate

equipment and execute standard operating

procedures (SOP). They were tasked to execute real SOPs such as locating

equipment on deck, going there, finding out its status, and taking appro-

priate action. For example: “Go to valve V112, check its position, then

close it!” By executing tasks correctly, operators earned points. They could

also be penalized in terms of points for improper actions. To create a posi-

tive learning environment, emphasis was put on stimulating improvement

rather than punishing errors.

Floating Production Storage and Offloading Vessel



COMOS Walkinside

VRcontext, a spin-off of GDF Suez and recently

acquired by Siemens, took on the challenge to build a

viewer for very large 3D models, such as process

plants, that combines a realistic view with fast

navigation for non-specialists, such as operations or

maintenance personnel. COMOS WalkInside converts

3D plant models from well-known 3D design

applications into a suitable format to reach this

performance. Features include:

• Realistic visualization and navigation within models

containing several million objects.

• Automatic model conversion. Model cleaning of

temporary design objects also can be automated.

• A software development kit allows the user or the

integrator to develop plug-ins for any application.

Applications of COMOS Walkinside include:

• Reviews of EPC designs together with or by the

owner-operator, without complex 3D CAD tools.

Closer cooperation between OO and EPC allows

earlier detection of problems and helps to solve

problems, resulting in earlier operational readiness.

• Immersive Virtual Training for operations or

maintenance where the user can move with his

avatar and experience the plant as in reality. The

application saves time and increases effectiveness.

• 3D plant and equipment viewing in conjunction with

asset management or operational tasks. COMOS

Walkinside provides access to engineering,

operations, maintenance and business planning

information.

All operators who had used PCs before were capable of “walking inside”

with only half a day of introduction to the tool. The operators readily ac-

cepted the tools and described the training as “practical”, as opposed to

“theoretical”. Of course the two are necessary to give the operator a full

understanding of the meaning of their tasks.

The instructor has the possibility to look

virtually over the operator’s shoulders by

observing their screens in real-time. He

creates procedures with prompts that

guide operators through their tasks.

These can be executed in an automated

way, guiding the operator step by step

through the execution of an action list. In

the multi-user environment, the instructor

can create scenarios that imply coordi-

nated actions of several operators, each

with his own avatar.

The user reported that immersive training

compared favorably with traditional train-

ing. It is common practice to send the

future operators for a few months to the

shipyard where the FPSO is built. Since

the ship and the equipment are under

construction, equipment can be missing or

inaccessible, or auxiliary installations may

be present that are not relevant to their

work. Most often the shipyards are in

other parts of the world, involving ex-

penses for travel and living. The immer-

sive training simulator saved training

time and was more effective. As a result

the operators were more operational than

with classical training. This could imply

higher utilization rates and fewer errors with economical or environmental

impacts. Since the FPSO mentioned above was delivered one month earlier

than scheduled, and the operators’ training was shorter than usual, the

training did not delayed the commissioning of the ship, resulting in an

overall shortened time to production, and an increased cash flow.



Recommendations

Based on the research conducted for this paper, ARC Advisory Group re-

commends to:

• Conduct mechanical, process and automation related risk analysis as

well as analysis of risk in applying procedures and appropriate beha-

vior. Design layers of protection by integrating types of protections:

technical, human behavior and organizational.

• Base decisions for operations and maintenance on up-to-date asset in-

formation and guarantee the accuracy of this information through a

data centric IT approach and appropriate processes for all disciplines

acting upon asset data.

• Train operations and maintenance personnel using a safe virtual envi-

ronment that references up-to-date asset data. Complement this with

process and automation-oriented operator training simulation.

• Institute benchmarking on maintenance, reliability and process safety to

monitor the level of excellence and the available improvement poten-

tial.

References

Abnormal Situation Management (ASM) Consortium, cited in: O’Brien, L.,

2010, “We need a Better Approach to Procedural Automation”, ARC Strate-

gies, ARC Advisory Group, September, 2010.

Bailenson J.N., N. Yee, J. Blascovich, A.C.Beall, N. Lundblad and M. Jin,

2008, “The Use of Immersive Virtual Reality in the Learning Sciences: Digi-

tal Transformations of Teachers, Students, and Social Context”, The Journal

Of The Learning Sciences, Vol. 17, pp. 102–141.

Christou, M., 2008, “Major Accidents: Examples, statistics and remarks on

their prevention”, Presentation on behalf of the Major Accident Hazards

Bureau, of the European Commission, XI EWHN Conference, October 2008.

Farrell, D. and J.K. Remes, “How the world should invest in energy effi-

ciency”, McKinsey Quarterly, July 2008, pp. 1-11.



Ghosh, A., and D. Woll, 2007, “Best Practices for Process Safety Culture”,

ARC Best Practices, ARC Advisory Group, July 2007.

Haesle, J., C. Devlin and, J. L. Mccavit, 2009, “Improving process safety by

addressing the human element”, Process Safety Progress, Vol. 28, No. 4, pp.

325–330, December 2009.

Hollywood, P., 2012, “The Journey to Operational Excellence Begins With

Risk Management, ARC View, ARC Advisory Group, May 2012.

Kahneman, D., 2011, “Fast and Slow Thinking”, Penguin Books.

Laurens, C. and O. Van Der Molen, 2009, “This is the time to deliver on

operational excellence”, in: McKinsey Quarterly 2009, Number 2, “Perspec-

tives on Oil & Gas”.

Schouwenaars, E., 2008, “Risks Arising From Major Accident Hazards,”

Refining Management Forum, Copenhagen.

Tversky, A. and D. Kahneman, “Judgment under Uncertainty, Heuristics

and Biases,” Science, Vol. 185, No. 4157, pp. 1124-1131, 1974.

Van Roost, H., 2010, “Excellence in Safe Operations”, presented at the

Process Management Academy, Düsseldorf, March, 2010. Also cited in:

De Leeuw, V., 2010, “Commitment to Building the Future at the Process

Management Academy 2010”, ARC Insight # 2010-16EMPH April, 2010.

Williams, J.P., 2001, “Predicting Process Systems,” Hydrocarbon Engineer-

ing, July 2001, pp. 1-4.

Haesle, J, Devlin, C. and J.L. McCavit, “Improving Process Safety by Ad-

dressing the Human Element”, Proceedings of CCPS convention 2008, pp.

193-204.



Analyst: Valentijn de Leeuw, Florian Gueldner

Editor: David Humphrey

Acronym Reference: For a complete list of industry acronyms, refer to our

web page at www.arcweb.com/Research/IndustryTerms/

2D Two-dimensional

3D Three-dimensional

AIM Asset Information Management

APC Advanced Process Control

EPC Engineering Procurement and

Construction company

FPSO Floating Production Storage and

Offloading vessel

IT Information Technology

IVE Immersive Virtual Environment

PC Personal Computer

ROA Return on Assets

RFID Radio Frequency Identification

SOP Standard Operating Procedures

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Good Asset Information Management Practices … Valentijn de Leeuw and Florian Gueldner ARC WHITE PAPER OCTOBER 2012 Good Asset Information Management Practices Improve Reliability