Lima visit Oct 20 2016

Reflecting on Lima Refinery

1994 to 1998status as of 2016

Paul Monus visit October 20, 2016

I’m sure glad the hole isn’t on our end …

$12m annual savings

Lima Refinery Value:1997: -0.5 bn1998: 0.215 bn2007: 1.9 bn

wildly successful initiative

AttentionAttention

Increase RateAttention

Decay Rate

+

Action

Organizational Capability

Increase Rate of Organizational Capability

Personal CapabilityIncrease Rate of

Personal Capability

+

Attention Increase Interventions

+

+

+

F7F6

F5

F9

F10

F8

F4F11

F14

F13

F12

G1 G6G2 G4G3

G8

Maintenance

Integrity CUI

Contractor AHSE

F1

F2

F3

Contractor FContractor E

Contractor HContractor D Contractor G

G5

G7

Abbreviations: Fn – Facility n; Gn – Group n Functions: Operations Maintenance Business Services Engineering

Contractor B

Contractor CContractor I

AttentionAttention


Decay Rate

+

Action




Personal Capability

+

Organizational Culture

Follow-up

+


+

Self-management

+

+

+

Performance

Resources for transformation

+

++

++

+

AttentionAttention


Decay Rate

+

Action




Personal Capability

+


Follow-up

+


+

Self-management

+

+

+

Performance


+

++

++

Personal Mastery

Shared Vision and Team Learning

Mental Models

SystemThinking

System Thinking

System Thinking

+

Attention1

0.75

0.5

0.25

00 240 480 720 960 1200 1440

Time (Day)

Atte

ntio

n

Attention : Sim4Attention : Sim3

Attention : Sim1

silos reacting to events

engagementleadership & management

actionfollow-up

One Teamlearning organization

AttentionAttention


Decay Rate

+

Action




Personal Capability

+


Follow-up

+


+

Self-management

+

+

+

Performance


+

++

++

Personal Mastery

Shared Vision and Team Learning

Mental Models

SystemThinking

System Thinking

System Thinking

+

Network Analysis

Lima

Alaska

1. Engaging senior management to define a change program for the business2. Designing interventions that serve as ‘virus’ to infect employees with new guiding ideas,

to evolve the social network structure3. Driving true engagement of the entire organization (deep enough, fast enough)4. Evolving personal participation in cross functional actions to learn collectively – a true

learning organization5. Catalyzing sufficient ‘scale’ and pace of actions while avoiding ‘overdoing it’6. Systematically putting together in the same room, on a regular basis, three types of

leaders with positional managers and frontline workers to build collective leadership that aligns perspectives as the change unfolds

7. Setting in place new simple decision rules for action and boundaries that drive focus on value, not just short term cost

8. Capturing policies and process (PACA) in the form of Practices and Procedures

9. Communicating requirements and building organizational discipline

10.Evolving business performance, across the full value chain, not ‘within the plant fence.”

Tran

sfor

mati

on –

cha

lleng

es

Operating domains

Behaviors

Planned

Reactive

PrecisionMedium Risk

Moderate Risk

Regressive

High RiskUnsustainable

Equipment Strategies

Work Management

Operating DisciplineCulture of Defect

EliminationFunctions Integrated

Low Defect LevelAll basics in place

Sustainable

OMS Level 5Low Risk

Perf

orm

ance

Sub-functional view within OMS 5.4all are swimming ahead; challenge is to integrate

Reliability & Maintenance

Integrity ManagementEngineering Services

Subsea

Operations

TAR

Conformance

Framing is key to selection of actions from available action repertoire

What are therequirements

and conditionsshaping thebehavior of

people?

How didwe create

theseresults?

Copyright Action Design 1996

Acting

What wethink &

feel

What wesay

and do

FramingHow people see the:--Task--Self & Other--Key Themesin a situation, that informs how they design actions

Models

Context Results

Available stock of knowledge about

how the world works, cause and effect

predictions, whichaccumulate from

childhood

IdentityVision / GoalsCurrent RealityRewardsPeer FeedbackNorms / culture

Inspection and Maintenance Requirement documents evolution

2013 & 2014 2015 2016

BP Practice Inspection and Maintenance (100054)

BP Procedure Equipment Strategy (100197)

BP Procedure Work Management (100052)

BP Procedure Improving the Effectiveness of Inspection and Maintenance in GOO (100198)

BP Procedure GOO OMS 5.4 Self-verification and

Governance (100199)

BP Procedure Management of Turnarounds and Major

Outages (100195)

BP Practice Inspection and Maintenance (100054)



BP Procedure Improving the Effectiveness of Inspection and Maintenance in GOO (100198)


Governance (100199)

BP Procedure Management of Turnarounds and Major

Outages (100195)

OMS Essentials

BP Practice Reliability and Maintenance Management

(100054)



BP Procedure Defect Elimination (100198)


Governance (100199)

Blueprint Job Description



• Provides clarity about the ‘rules’ that be followed (operating discipline)

• Defines what is required for OMS conformance• Eliminates confusion coming from legacy interpretations of

‘the rules’• Aligns sub-functions – all of GOO in scope• Sets process and accountabilities (PACA, Ops Blueprint)• Enables the toolsets to be used properly (Backbone etc)• Helps us avoid incidents and improve efficiency

Why are these procedures important?

• Identifies the basic needs for a successful Inspection, Testing, and Repair program

• Life cycle plans for equipment• A way to identify, execute and track work• Budget to meet the plans• Understand when and why the plan does not work and improve it• Measure and improve the Inspection and Testing program

• Identifies the leadership activities that support a successful program and establishes a culture of reliability

GOO Practice – Inspection and Testing

• Establishes a common framework, language and method for identifying, plan and execute work

• Establishes a standardized work flow that can be supported by computerized tools (Maximo and SAP)

• Allows other work processes to interface in a standard way including:• Scheduling• Control of Work• Isolation• Work deferral requests and approvals

Work Management Procedure

• Establishes a common framework, language and method for identifying, plan and execute work in TAR

• Establishes roles of other organizations in support of TAR planning and execution

• Establishes standard ways of measuring TAR performance• Allows other work processes to interface in a standard way including:

• Work Management• Cat C Projects• Scheduling• Control of Work• Isolation

TAR Procedure

• Compiles all the activities that are expected on each piece of production equipment in one place.

• Provides a standard methodology to engage the stakeholders in the process of developing a life plan for the equipment

• Provides a standard way of documenting the activities and basis for the activities.• Provides a standard way of documenting the scopes of work of maintenance and

inspection activities required to execute the life plan• Establishes rules on when and how to update the life plans• Technical content owned by engineering in the appropriate sub-function• Supports work scopes for TAR, IM, R&M activities

Equipment Strategy Procedure

• Establishes a methodology for systematically eliminating defects found during corrective work in order to reduce the flow of defects into the system

• Works in conjunction with the defect elimination activities defined under OMS 6.1 sub-element (not a replacement for PEI or Vulnerability management)

• Focus of this procedure is work orders that come to exist that are not generated by the equipment strategies / maintenance build (currently 50% or more of total work demand)

• A means for systematically engaging one team cross functional behaviors around equipment care

• Drives operating discipline and cost efficiency/wrench time• Targeted for implementation following a stable work management implementation

(2017+)

Improving Inspection and Maintenance Procedure

Proc

esse

s & In

terfa

ces

Identify / Appraise

Validate / Select

Plan / Define Schedule(AP) / Define Execute Close /

Operate

Specific Equipment

Strategy

Improve

FUNCTIONAL SELF-VERIFICATION

GOVERNANCE (FCP / AOP / FDP)

Generic Equipment

Strategy

Prepare Authorize Execute MonitorRisk AssessPlan Complete Learn

Cat C: Define Cat C: Execute

Cat C: OperateCat C: SelectCat C:

Appraise

Abnormal/Infrequent operationsNormal operations

Readiness / trainingRounds

Return to operation

Prepare siteSchedule

SOPsPerformance standard, Equipment Strategy

Permit

TAR

Task Risk Assessment

Work Order

TAR

MM / P2P

Cat A & B

Project Initiation Request

OMS 5.3

OMS 5.4

OMS 6.7

OMS 5.1 & 5.2

GPO

Control of Work

Inspection & Maintenance

Operations

Projects and Engineering

Documents

Lima visit Oct 20 2016