Asset Safety: Design and Implement

Wednesday, January 12, 2011 by Stephen Rucker
Protective FunctionsAs we discussed in previous posts, the Asset Safety work process is focused on ensuring that the safety and protective functions of instrumented assets are properly defined and managed.  In order to ensure that risks are mitigated, companies that hope to design and implement protective functions need to develop asset management strategies.  In the world of Asset Safety, such strategies are based on methodologies such as Safety Instrumented Systems (SIS) management or HAZOP.  By using these methodologies, reliability and safety personnel can determine how their assets are most likely to fail and then design their protective functions in order to mitigate those failures.  

Managing such safety and protective functions begins with assessing operating risks, after which, safety and reliability personnel need to design and implement protective functions.  With the hundreds and thousands of physical assets at a given plant, designing and implementing protective functions on each asset can be very difficult to manage without such tools as APM Software.

Designing and implementing these safety and protective functions can be a very time and labor-intensive task.  In order to maximize the effectiveness of your program, it can be very useful to receive guidance and instruction around reliability best practices in the area of Asset Safety.  To offer instruction and guidance in these areas, Meridium is hosting a free Asset Safety workshop on Thursday, February 24rd in Houston, TX.  For more information on Meridium's free workshops or to register, please click here.  The Asset Safety work process as well as the other APM Work Processes will also be addressed at Meridium Conference in May 2011.  Click here for more information or to register.

Keep it Safe: Asset Safety as a key component of APM

Thursday, December 9, 2010 by Stephen Rucker
Process IndustryCompanies are always looking for a competitive advantage over the rest of the industry.  To gain the edge, upper management seeks to cut costs as much as possible.  Especially in the process industry, high availability can mean high revenues.  Companies have found, however, that focusing only on cost-cutting without taking risk into account often results in disaster.  In order to mitigate risks, employees' safety needs to be a necessary consideration when making maintenance plans.  Instrumented assets have protective functions but those protective functions need to be managed effectively.  This is accomplished through the Asset Safety work process. 

The Asset Safety work process focuses on ensuring that the safety and protective functions of instrumented assets are appropriately defined and managed.  In order to help educate industry leaders about this valuable work process, Meridium will focus its fifth APM Work Process workshop on Asset Safety.  The workshop will take place on February 24th, 2011 in Houston, TX and will teach attendees to systematically identify hazards using methodologies like HAZOP as well as manage strategies for Safety Instrumented Systems (SIS).  Attendees can expect greater improvements when this work process is executed comprehensively using an enterprise system like APM software.  

Improvements related to the Asset Safety work process include reduced major incidents and improved safety as well as increased effectiveness.  For more information on Meridium's free workshops or to register, please click here.     

You're 10 times more likely to be killed at work...

Wednesday, December 8, 2010 by Marc Laplante
Jordan Barab, Deputy Assistant Secretary for OSHA, gave a speech at the NPRA meeting in May of 2010.  He stated that in a three-month period, between February 2010 and May 2010, 58 workers had lost their lives in explosions, fires, and collapses.  After doing a bit of research I found that during the same three month period, 100 US Servicemen had died in Iraq.  What does this say for PSM compliance?

I dug a little deeper and learned from the OSHA website that there are 15 workplace deaths per day in the USA.  So I looked up the number of US armed forces casualties to the end of May 2010, and learned that 4,404 US military personnel had died since the invasion in 2003.  So over 2,920 days, that's 1.5 deaths per day.  Is it possible that you are ten times more likely to be killed at work then at a theater of war?



This makes for a provocative headline.  Of course there are millions of people that go to work everyday.  Compare that to the relatively small number of soldiers you have apples and oranges.  So if I was to do proper statistical analysis the two samples don't match.  Furthermore, considering the cause of death from the workplace perspective places a big factor too.  There are numerous incidents of collapses, falls, electrocutions that make up the bulk of the fatalities.  These are deemed accidents rather than dying under hostile fire.

However something must be said about workers dying in an environment that is supposed to be governed by process safety management.  There are numerous cases in which workers died, not because they were being careless, it was because someone side-stepped a process.  No amount of HAZOP can prevent a person from making a risky bet anymore than a compass can force someone to walk in the direction it points in.

It's my hope that with asset performance management, people will be as mindful about process safety as they are about hard hat safety today.

Hazards Analysis and Containing Risk

Tuesday, November 2, 2010 by Marc Laplante
"Replicants are like any other machine.  They're either a benefit or a hazard.  If they're a benefit it's not my problem..."Mechanical Integrity is needed to contain volatile molecules that we manipulate in massive quantities.

One of my favorite movies is Blade Runner.  In the story Dekard, the main character, is a special kind of police officer commissioned to contain and eliminate a threat that was a result of engineering.  The threat was a group of "replicants", or artificial humans (pictured right), who'd come to Earth illegally to have an audience with their "maker".  They were extremely volatile, dangerous, and unpredictable.  This story tells of a "loss of containment".  They'd escaped and had become a dangerous threat.

Humanity has manipulated volatile molecules for generations.  The modern history of petroleum refining spans about two centuries.  Petroleum's value is that it can be accessed and processed fairly easily, at low cost, and in high enough volume to meet the typical market demand.  Petroleum's benefit is a that it is an affordable, highly portable, dense energy source, that fuels the vast majority of vehicle locomotion on the planet.  The hazard is that we're manipulating massive quantities of highly volatile molecules.  Any loss of containment can be (and has been) extremely destructive.

So the benefits are clear and the hazards are also clear.  Although the political will seems to be to find alternate sources of energy to replace petroleum we're not going to see its replacement for generations, if ever.  So to continue to enjoy the benefits we have to thank reliability engineers for keeping the hazards contained. 

Like the Bladerunner, the reliability engineer at a refinery works to contain the threat of our manipulations of hydrocarbons.  Methods like HAZOP the reliability engineer defines all of the process hazards, all the potential consequences, that revolve around those process hazards, and identifies all of the safeguards required to ensure those process hazards are mitigated.

PSM compliance is how asset-intensive companies meet the minimum legislative requirements for processing and containing highly dangerous substances.  It is also an on-going activity.  Some would argue that PSM compliance does not necessarily imply excellence either.

As announced yesterday by ARC Advisory Group, Meridium expands mechanical integrity and RBI consulting with the addition of new talent for the Asset Integrity Services Group.  Asset intensive companies that are seeking to implement process safety management for basic compliance.  Many of these companies are also striving for PSM excellence.  They will find the subject matter expertise that Meridium now includes as part of its already broad base of asset performance management domain expertise will help them reach that level of excellence.

Excellence in mechanical integrity means more benefit, less hazard.

Registration now open for free reliability best practice workshops!

Wednesday, October 6, 2010 by Stephen Rucker
Improved failure elimination.  Optimized asset strategies.  Guaranteed mechanical integrity.  Protected assets.  Increased safety.

Companies around the world are seeking to make improvements in these areas.  To help with this, Meridium, the global leader in asset performance management (APM) software, will begin a series of 5 workshops on November 4th dedicated to helping companies improve their work processes.  All the workshops will take place in Houston, Texas, USA and are as follows:

November 4th, 2010
APM Foundation Workshop
The purpose of this workshop is to show attendees how to assess risk and improve performance.  Topics discussed will include: asset performance management fundamentals, criticality analysis, asset health indicators, on-line analytics, EAM interfaces, recommendation management, and more. The APM Foundation Workshop is a pre-requisite to all other work process workshops.

November 18th, 2010
Failure Elimination Workshop
This workshop will teach attendees how to identify failures and then employ preventive measures to eliminate failures.  Topics discussed will include: metrics and scorecards, root cause analysis, reliability analytics, and more.

December 2nd, 2010
Asset Strategy Workshop
This workshop will teach attendees how to improve their asset performance management strategies.  Topics discussed will include: living asset strategies, asset condition, continuous improvement, and more.

Q1 2011
Mechanical Integrity Workshop
This workshop will teach attendees how to improve their mechanical integrity programs.  Topics discussed will include: regulatory compliance, the identification of damage mechanisms, establishing operating envelopes, inspection management plans, qualitative risk analysis, and more.

Q1 2011
Asset Safety Workshop
This workshop will teach attendees how to ensure the safety of their plants through asset management.  Topics discussed will include: hazards analysis, safety instrumented systems, HAZOP, and more.

Registration is now open and spots are going fast!  Register today by using the buttons on the right side panel of this page.

Tips on how to help gather better performance data

Tuesday, October 5, 2010 by Marc Laplante

Six Buckets of Pain - Bucket No. 3 - Decision Support

It can be a struggle to get plant personnel to collect good quality data.  There are established processes, like risk based inspection, that have a pretty stable set of data gathering requirements.  There is a growing number of smart devices and embedded microprocessors in our plants that gather and transmit process safety management data on a continual basis.  Nonetheless there is still a need for data to be gathered from the observations of operations and maintenance people.

Data quality is a popular topic of discussion on the LinkedIn communities that I belong to.  In response to yesterday's blog post, John Keramidopoulous of Downer Engineering in Australia made mention of how failure codes are often entered as "other" or "miscellaneous".  I have a customer who spent money and resources to setup an elaborate set of failure codes only to have "other" be the one selected the majority of the time.

One way to have plant people personally relate to the effect of data gathering practices is to compare data gathering to something they hold dear - fantasy football (or for my Canadian countrymen - the Hockey Draft). 

Compare it to fantasy football:

Let's assume the quality of data in the fantasy football league is the same quality of plant data that's gathered by maintenance and operations personnel every day.  Would you feel more or less confident about your chances of success during the season?

Compare it to an airplane:

Okay, not everyone participates in fantasy football.  During a class I was facilitating a number of years ago, the maintenance manager used the example of an airplane.  He asked the members of his department "if this plant were an airplane would you put your family on it?"  The response from his group was a definite no!

We don't expect plant personnel to be familiar with the minutia of HAZOP but we do want them to have an appreciation for quality data gathering.  Alot gets invested in things like reliability centered maintenance and the only way to make it effective for the long term is to have good quality data to support adjustments to asset performance strategy.



Failed Compliance - Who's Fault is it?

Thursday, September 16, 2010 by Marc Laplante

I read a discussion response to a post I put up on a LinkedIn risk management group.  The response said something to the effect of, "disasters are going to happen, nothing we can do other than cope with the impact".

Yes disasters do occur. The question is should they have? Were all of the prescribed procedures followed?

 

I call on the risk management world to give consideration to the fact that there were risks that could have been mitigated in each of the fatal industrial incidents that have occurred in the last several years. Investigations have shown that backlogs of maintenance, budget cuts to critical programs, and hasty decisions that overstepped procedural checks and balances were among numerous causative factors that led up to these fatal disasters. 


So who’s to blame?

 

The respondent also said, we would all expect those who are culpable of being negligent to be dealt with. So, in everyday terms, I could defer maintenance on my car and cut spending in its upkeep. Yet if I choose to get behind the wheel and my brakes fail, while driving through a school crossing and kill several people, there would be no question that I was guilty of reckless endangerment. I did not choose to hurt or kill anyone but my inaction and neglect were part of the disaster I caused.  What if it was a school bus that careened uncontrollably through the cross walk?  If it were determined that the county school bus fleet manager had been negligent in managing the brake testing, inspection, and repair for the bus fleet, there would be a public outcry and he/she would be indicted. 

 

Now the world of reliability engineering has developed numerous work processes that are focused on mitigating risk. Hazop, safety instrumented systems, RBI and numerous others exist to mitigate risk. Meridium works with companies who use our APM Software to PREDICT future failures of equipment so that they can make outage decisions in order to make preventive repairs and avoid disaster and death. According to Marsh, up to 20% of an organization's risk profile is determined by their ability to demonstrate in a timely and straight forward manner that they are managing their physical assets well and are mitigating risk. In other words those companies who can prove the number of “saves” they’ve made have a more favorable risk profile in the eyes of the underwriter.

 

The investigation in the Deepwater Horizon fatality showed that there was a backlog of over 390 maintenance items totaling more than 3,000 man-hours of maintenance that was overdue. A recent CNN news story reported allegations that PG&E used money that was allocated for pipeline inspection for executive compensation.

 

So I challenge the idea that “these things are going to happen… you can’t mitigate all of the risks completely”. No you can't but in each of these cases someone’s decision overstepped the checks and balances of established reliability best practices. 

 

I wonder every day where the next disaster is going to strike. I even have a few ideas. I'd be interested to know if people feel uncomfortable going to work knowing there is a real risk that something disastrous might happen?

HAZOP, Risk Management, and Economics

Wednesday, September 8, 2010 by Marc Laplante
There is no shortage of nearly daily incidents to report on that involve process safety management or a lack thereof.  If you review all of the incidents on a global scale you will find several incidents per week that cost property and/or lives.

From a risk management standpoint incidents like the one at Pemex yesterday can really forestall a company's plan to increase production to higher sustainable levels.  How does the investment community know where to put its money when there are incidents like this on a near daily basis?  Of all the incidents that have occurred in the last couple of years it is clear most asset intensive companies don't have a comprehensive portfolio view of risk.

From an economic standpoint nations seems to be striving toward energy independence.  However, nations like the US and Mexico are continuing to import crude to satisfy their domestic consumption needs.  Independence will certainly be difficult to come by if incidents like these continue to escape the safeguards of qualitative risk analysis efforts at these plants.

Fail Safe or Fail Unsafe - A re-blog

Tuesday, August 31, 2010 by Marc Laplante
 Karthiekyan. B blogged this past weekend on the blow-out preventer (BOP) involved in the BP Gulf disaster.  Following the explosion, the BOP was supposed to slam shut.  The blog included a link to a NYT story that points at regulators for having failed to address risks related to the BOP.

In the world of hazards analysis, specially trained and experienced engineers are charged with conducting layers of protection analysis, or LOPA.  This type of analysis is meant to prevent single-point failures like the one in the Gulf.  

The blame game has been raging ever since the explosion.  Can we point the blame squarely on regulators?  Surely they need to be keeping watch over the companies operating in our sensitive environments.  Can we point the blame at the board of directors at BP for not sufficiently setting the right level of appetite for risk?  Process safety management demands measures for risk mitigation are in place to protect the workers, the environment, and the interests of the investors.  

HAZOP will never be perfect.  It will never prevent every type of failure.  When Asset Performance Management and Enterprise Risk Management meet at the point of risk, many more of these potential disasters will be avoided.

HAZOP and Enterprise Risk Management

Friday, August 20, 2010 by Marc Laplante

A place at the tableAll of the talk around Enterprise Risk Management (ERM) leads me to think about where process safety engineering fits in the grand scheme of risk management.  Most of us would agree that including HAZOP as foundational part of an ERM system is a no-brainer.  But what about its visibility and executive function?  Where does IEC 61882 fit with ERM; does it have a place at the table? 

Meridium offers enterprise tools that allow functional support of HAZOP and rolls it up to corporate risk management.  APM software allows it a place at the risk management table rather than being relegated to the kitchen.

Stop boasting about your safety records when you're literally putting out fires

Monday, May 24, 2010 by Marc Laplante

OSHA Deputy Assistant Secretary Jordan Barab leveled a very direct judgment against petroleum and petrochemical processing companies at the NPRA conference last week.  He did not mince words.

Image courtesy of freefoto.com"Your workers are dying on the job and it has to stop"

"Stop boasting about your safety records when you're literally putting out fires.  You're undermining your credibility"

He called on industry leaders to learn from their own mistakes and those of others.  He further called on them to share best practices and and success stories.  New metrics were also a topic of discussion since current metrics are not preventing death and disaster.  Mr. Barab concluded by urging companies to promote a real and lasting cultural transformation in the area of PSM. 

Can improving metrics and scorecards help avert disasters?  There is a need to systematize Process Safety Management from the initial HAZOP to the decommissioning of the plant.  What I have come across quite often in my daily conversations with reliability professionals is that too many of the efforts that impact Process Safety Management are run independently.  Risk based inspections are being done by one set of engineers.  Safety instrumented systems management is done by yet another group.  Inspection management is being carried out by a group that is not connected to either of these. 

One of the more troubling findings Mr. Barab refers to was that findings and concerns are not being communicated across corporations, throughout industry, or even within different units within the same refinery. 

The problem doesn't seem to be limited to the process industry.  This seems to appear in the medical industry, education, government, and heaven forbid, homeland security and intelligence.

 

There are 16 different US federal agencies that perform intelligence analytics. In the weeks and months prior to 9/11, parts of the system were blinking red. But the disparate red blinking lights did not coalesce and form a comprehensive warning that may have averted the loss of life and catastrophic events of that day. Even though parts of the system were blinking red no one was able to connect the dots between all of the available pieces of intelligence. 

(Enterprise 2.0: New Collaborative Tools for Your Organization's Toughest Challenges, Andrew McAfee)

This is a poignant example of what disconnected information and data can result in. If they had been able to connect the dots they may have been able to perceive the nature of the threat more clearly and prevent the attacks from occurring. 

 

With all due respect and sensitivity I use this example because it is hard to ignore. It demonstrates, through an unforgettable catastrophe, what occurs in the asset-intensive industry in terms of asset performance. Are there parts of the system that are blinking red in one department that are not signaling trouble to other departments?


 
The Meridium Knowledge Center is a great repository of success stories and best practices in this area of PSM.