What if Process Safety risks were as visible as Health and Safety Risks?

© Amor Group 2010

What if Process Safety risks were as visible as Health and Safety Risks?

© Amor Group 2010

Your Hosts

Angela Wands

Process Safety Sales Manager, Amor Group

Richard Gillis

Process Safety Lead Consultant, Amor Group

Martin Sedgwick

Head of Engineering and R&D, Iberdrola

December 2011 Visible Process Safety Risks

© Amor Group 2010

Agenda

• Introductions to Amor Group & ScottishPower

• Which warning signs are most likely to help you avoid an incident

• The role KPIs play in highlighting the warning signs

• How to get near real-time visibility of the key process safety warning signs without it becoming a burden

• The steps you can take today to uncover the warning signs present across your organisation

• Business Benefits of this approach

50

10

60 Minute Duration

Presentation

Questions


© Amor Group 2010

Iberdrola Group and ScottishPower

…with a clear focus on clean, sustainable energy provision

2nd wind company

3rd player in gas storage

1st privateproducer in

Mexico1st distributor in

Brazil

One of the six largest

generator / retailers1st wind company

Main energycompany

Operating in over 40 countries to serve 30 million customers

Combined April 2007 to form the 4th largest Energy Utility company in the world

44GW of installed capacity and a world leading 11 GW of renewables


© Amor Group 2010

ScottishPower OverviewScottishPower is one of the “Big 6” energy suppliers in the UK

Vertically integrated and geographically diverse energy business

Scottish Power Manweb

(Distribution)

ScottishPower

Transmission & Distribution

Longannet

Cockenzie

Cruachan

Lanark

Galloway

Ravenhead & Pilkington

Blackburn

Pearsons

NHHT Basingstoke

Rye House

BrightonDamhead Creek

CHPHydro

CCGT

PumpedCoal

Over 8,000 employees

Supply 5.2 million customers

7GW of coal, gas, wind & hydro generation across the UK

SP Renewables largest onshore wind operator in UK (1200 MW)

Distribution area of over 35,000 square kilometres


© Amor Group 2010

Taking Process Safety Forward

"This is pioneering work, which leads not only the generation sector but other areas of process industry. I hope that other companies will consider the progress you have made, adopting a similarly robust approach.” Ian Travers HSE

“No successful company could stay in business for long without accurate information on its financial performance – so why act differently when it comes to process safety?”Judith Hackitt Chair of the HSE

ScottishPower received the IChemE health and safety award for the process safety KPI dashboard project

ScottishPower’s commitment to process safety...

We Need more Leaders to adopt the ScottishPower approach and to

consider innovative ways of making process safety an integral part of

everyone’s role

Judith Hackett CBE, Chair of HSE UK June 2011


© Amor Group 2010

Working in Partnership

• Jointly developed award wining approach to Process Safety• Relationship spans 15 years +• Aim to help other companies fast track a similar approach• Providing access to recognised Industry leading expertise• Providing access to proven tools and delivery methodology• Integrating technologies to deliver a sustainable solution


© Amor Group 2010

Energy Solutions & Sample Customers


http://www.bp.com/

© Amor Group 2010

• Which warning signs are most likely to help you avoid an incident?

• The role KPIs play in highlighting the warning signs

Martin Sedgwick

Head of Engineering and R&D, Iberdrola


Major Hazard AccidentsIndicators Need To Be Visible to Prevent Accidents....


Maintenance & Testing of Critical Instrumentation and Alarms- high level alarms did not operate and were not routinely tested

Operational Compliance-staff routinely deviated from plant checks to save time

Shift Handover- no formal shift handover process resulted in the level in vessel not being communicated resulting in overfilling

Control Loops-key control systems were left on manual resulting in high levels in vessel

BP Texas CityKey Indications Were Missed

December 2011

What if Process Safety risks were as visible as Health & Safety risks?

Process Safety

Swiss Cheese Model

Hazards

Risk Control Barriers

December 2011 Visibile Process Safety Risks

Which warning signs are most likely to help you avoid an incident ?

Types of IndicatorsRisk Ranking of Indicators…


Operational Control Indicators

Lagging Indicators•Active Monitoring and Logging:•Breaches Of Plant Limiting Conditions (eg overpressure, overspeed, overtemp)

•Control Loops Out Of Control•Equipment In Manual•Operation of protection systems•Failure of protection systems

Leading Indicators• Inspection and Maintenance of Control Systems and Critical Systems

•Alarm Management•Control Loop Performance•Completion Of Operational Routine Checks / Testing

•Shift Logging & Handover•Plant Overrides and Defeat of interlock

•Safety Critical Systems not available

Generic

Lagging Indicators• Incident Reporting and Investigation:•Near Misses (eg demand on safety system)

•Loss Of Containment (eg release of high pressure steam)

•Process Safety Incident (eg major equipment damage)

Leading Indicators•Critical processes undertaken correctly•Operations•Maintenance•Engineering

Programme Indicators

Leading Indicators•Statutory Inspections Completed (eg PSSR)

•Audits To Programme•Action Closure•Training and Competence•Procedures Up To Date• Improvement programmes

IndicatorsLine of sight, example...

Operational Control Generic Programme


Gaps in Information, Culture and Behaviour

RealityMOC of Electronic Governor not completed Manual Trip System Not TestedOverspeed Test Procedure not followed e.g. (Failure to inform Control Room)

RealityOutage completed to planStaff Training CompleteMOC and Overspeed Test Procedures Up to date

Two Realities...

But we need to join them together

IndicatorsLine of Sight Gaps Closed...


Operational Control Generic Programme

KPI RankingOperational Indictors are the key to avoiding incidents...


Operational Control Indicators

Generic Indicators

Programme Indicators

0 1 2 3 4 5 6

Major

Process

Safety

Incident

Significant

Process

Safety

Incident

Minor

Process

Safety

Incident

Indicators

Major Process Safety Incident:

• Equipment damage > £100k

• Loss of Production > 24 hours

• Injuries / fatalities (RIDDOR)

• Major environmental impact

Significant Process Safety Incident:

• Equipment damage > £20k but <£100k

• Significant release of energy or hazardous matter

• Fire and explosions

Minor Process Safety Incident:

• Demand on safety system

• Process upset – control loops out of control, equipment in manual

• Breaches of plant limiting conditions

Lagging Indicators also act as warnings when captured at a low level

December 2011Visible Process Safety Risks

The role KPIs play in highlighting the warning signs

Plant ChecksKey Operational Indicators...


Plant ChecksVisibility Of All Routine Operations Plant Checks...


Safety Critical InstrumentationCalibration and Proof Testing of Critical Protection Systems...


Safety Critical SystemsStandard Approach to Monitoring & Proof Testing...


Control LoopsControl Loop Management


Control Loop ManagementVisibility of Control System Performance...


Shift HandoverKey Communication Tool...


Shift HandoverLinked to Operational & Competence Standards...


© Amor Group 2010

Richard Gillis

Process Safety Lead Consultant, Amor Group

• How to get near real-time visibility of the key process safety warning signs without it becoming a burden

• The steps you can take today to uncover the warning signs present across your organisation

© Amor Group 2010

Develop Process Safety indicators

• Health and Safety Guidelines 254

• Produced by the HSE in 2006

• Originally developed in partnership with the Chemical Industry Association (CIA)

• Development of indicators to reflect main process safety vulnerabilities

• Focus on those hazards that can go wrong most quickly with the greatest consequences

• Review of organisation’s risk profile to identify the vulnerabilities


© Amor Group 2010

James Reason’s Accident Trajectory Model

HAZARD

HARM

Risk Control System

Accident Trajectory

Leading Indicator

Lagging Indicator

Risk Control System

Risk Control System

Require a routine systematic check that key actions or activities are undertaken as intended.

Show when a desired safety outcome has failed, or has not been achieved.

People

Process

Plant


© Amor Group 2010 December 2011 Visible Process Safety Risks

© Amor Group 2010

Technical Risk Management

Plant Modification Procedure

Plant Status Review / Technical Risk Register

Strategic Spares

Engineering Standards

Technical Knowledge Management

Design Review

Asset Investment

Civil AssetInspections

Pressure System Safety Regulations

Critical Systems

Critical Systems

Emergency Supplies

Fire Systems

HV Electrical Systems

Main Protection Systems

Environmental Systems

Alarm and Instrument

Management

Control Systems

Critical Instrumentation

Protective Systems / Devices

Alarm Systems

Maintenance Management

Work Prioritisation,

Planning, Scheduling

Work Identification, Routine Plant Inspections

Work Execution

Personal Risk Assessment

Operations Management

Startup /Shutdown Procedures

Routine Plant Checks

Routine Testing

Shift Handover

Company Safety Rules

Management

Plant Limiting Conditions

Staff Competence

Communications

Leadership

Training Needs Analysis / Plan

Competency Assurance

Staff Knowledge Management

Emergency Preparedness

Emergency Planning

Business Continuity Planning

Environmental Containment

Systems

Plant Process People Recovery

Operation & Compliance Audit

External Audit Integrated Internal Audit Action Tracking

Controlled Documents (Policies, Procedures,

Standards)

Generic “Barriers”


© Amor Group 2010

Key Performance Indicators

Fully defined KPI, including:– Objective– Definition– Data Source– Data Aggregation /

Calculation– Targets

Data Recording Guidelines

Formal sign off by senior managers


© Amor Group 2010

Data Source Systems

Process Safety

Alarm Management

Works Management

Risk Management

Shift Logging

Reliability Engineering

Staff Competence

© Amor Group 2010

Data Source Systems

Process Safety

Alarm Management

Works Management

Risk Management

Shift Logging


Staff Competence

Alarm Management• Proving real-time trend

analysis of all alarms throughout the organisation

• Improvement plans developed for all sites

Works Management• Single solution and set

of processes defined and implemented across the asset estate

• Scheduling capabilities used outside core works management

© Amor Group 2010

Data Source Systems

Process Safety

Alarm Management

Works Management

Risk Management

Shift Logging


Staff Competence

Risk Management• Single, fully integrated

risk management, incident management, action tracking, audit tool

Shift Logging• All Control Rooms and

Unit Desks using standard electronic logging system

• Automatic feeds developed from plant information (OSI PI)

© Amor Group 2010

Data Source Systems

Process Safety

Alarm Management

Works Management

Risk Management

Shift Logging


Staff Competence

Reliability Engineering• All sites using hand held

technology for Operator Routes

• Automatic monitoring through single system

Staff Competence• Operations standards

introduced• Start up and shutdown /

shift handover competencies in place and monitored

© Amor Group 2010

Data Source Systems

Process Safety

Alarm Management

Works Management

Risk Management

Shift Logging


Staff Competence

© Amor Group 2010

Process Safety

Alarm Management

Works Management

Risk Management

Shift Logging


Staff Competence

Data Source Systems

© Amor Group 2010

Making your Process Safety risks visible


© Amor Group 2010

Making your Process Safety risks visible

Best PracticePerformance

PerformingAt Or AboveRequirementPerforming

BelowRequirement

PerformingSignificantly

BelowRequirement

NoProcess Safety

Incidents

MinorProcess Safety

IncidentSignificantProcess Safety

Incident

Major ProcessSafety Incident

Leading Indicators

Lagging Indicators



© Amor Group 2010

© Amor Group 2010

Process Safety Assessment Timeline

• Analyse Survey Results• Draft Gap Analysis

Report• Workshop to present

Draft Gap Analysis Report

• Final Gap Analysis Report

Stage 2

Month 1 Month 2 Month 3

Month 1 Month 2 Month 3

• Kick-Off Workshop • Culture Survey • Operational Integrity

Survey

Stage 1

• Draft Programme Plan• Draft Business Case• Workshop to present

Programme Plan and Business Case to project team

Stage 3

• Executive Workshop & Business Case Presentation

Stage 4



© Amor Group 2010

Angela Wands

Process Safety Sales Manager, Amor Group

Summary

© Amor Group 2010

Summary

• Review your existing KPIs against HSG 254– Do you have Leading and Lagging?– Are you measuring all of your barriers?– Can you identify your Operational Control Indicators?– Weight your KPIs

• Frequency– Could you measure more frequently?– What could you automate?

• Access– Do the right people see the KPI results?– Is there a disconnect between management and the sharp end?


© Amor Group 2010

The Benefits

Incidents and severity now starting to fall...


© Amor Group 2010

• 29% reduction in Operations and Maintenance costs

• 22% increase in plant availability

• 50% reduction in plant forced outage rates

• 10% Reduction in Insurance costs and deductable period

Significant benefits have been realised to date.....

2008 2009 2010 2011

Plant Availability 64.5% 77.0% 83.9% 86.9%

EFOR1 10.1% 7.5% 6.4% 5.5%

2008 2009 2010 20110

10,00020,00030,00040,00050,00060,00070,00080,000

Generation Costs (£m)

The Benefits


© Amor Group 2011

Our Process Safety Capabilities

“In just a few days we had established a common understanding of HSG254 across the team and achieved a level of progress with our KPIs that would otherwise have taken months to achieve under our own steam.“ Stephen Willis, Maintenance Manager - Shotton & Deeside,

International Power GDF Suez

KPI Workshop

Maturity Assessment &

Roadmap Automated KPI Dashboard

© Amor Group 2011

Question Time


© Amor Group 2010

Thank you for joining our webinar

Visit http://www.amorgroup.com/news-and-events/ to register for our next webinar on the importance

of Culture and Leadership in Process Safety

Angela Wands - Process Safety Sales Manager, Energy

Telephone: +44 (0) 141 814 3781

Mobile: +44 (0) 7860 503 712

e-mail: [email protected]

Web: www.amorgroup.com


http://www.amorgroup.com/news-and-events/

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Technology

What if Process Safety risks were as visible as Health and Safety Risks?