learning lessons from incidents
TRANSCRIPT
Learning Lessons from Incidents- BP’s Integrity Management StandardOPERA Risk Management Seminar
27 March 2007 Peter Elliot - Head of Integrity Management, BP
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“We Never Have Major Accidents” !
“I have never been in any accident of any sort worth speaking about….Nor was I ever in any predicament that threatened to end in disaster of any sort.I am not very good material for a story”
Veteran Sea Captain interviewed about his many years at sea in 1907.
E J Smith Captain of the Titanic
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Titanic 1912Titanic 1912
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Today’s Presentation
• Integrity Management Challenge around the world
• Safety of Plant and People
• Integrity Management Incidents
• Managing Plant Process and People
• Group Operating Management System
• The Integrity Management Standard
• Engaging People in IM - IMagine the Difference you can Make
• Some thoughts on applying lessons successfully
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Integrity Management Challenge around the world
…market capitalization $204 billion (as at Feb 2007)
BP is an oil, gas, petrochemicals and renewables company
We employ around 96,000 peopleWe have operations on 6 continents and in over 100 countries
…annual revenues/turnover of $262 billion (in 2005)
…with approx 28,500 service stations worldwide
…one of the 10 largest companies in the world
…serving 13 million customers every day
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BP’s heritage
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What we do
BUSINESS SEGMENTS
RESOURCESExploration &
Production
CUSTOMER FACING
Refining & MarketingGas, Power & Renewables Integrated Supply & Trading
(including Acetyls & Aromatics from Petrochemicals)
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Our global presence
Oil
Gas
Chemicals
Refining
Market positions An opportunity and a responsibility
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Where our people are located
Latin America & Caribbean
4,500
NorthAmerica
39,200
Africa3,500
Europe42,600
Asia &Australasia11,600
Middle East,Caspian & Russia
2,950 (100,000+ TNK-BP)
BP Sunbury ~3500 E&PR&MGP&R
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Safety in Operations 2006
To ensure that everyone in and around our operations is always safe
To ensure that plant contains hazardous materials (hydrocarbons and toxic materials) securely and sustainable
Recordable Injury Frequency
Oil Spills greater 1 bbl
Workforce Fatalities
05
1015202530
1999 2000 2001 2002 2003 2004 2005 2006
non road related road related
0
200
400
600
800
1000
1200
1999 2000 2001 2002 2003 2004 2005 2006
00.20.40.60.8
11.21.41.6
1999 2000 2001 2002 2003 2004 2005 2006
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Safety of People and Plant
• BP has made significant progress in safety performance as measured by injury frequencies
• In addition, a number of safety innovations have been introduced – e.g. Golden Rules
• BP also had recognised the need for, and benefit of, a consistent approach to Group risks – e.g.. the Driving Safety Standard, introduced in 2004
• Key Group Mandatory Operational Standards are
− Integrity Management
− Control of Work
− Driving
− Marine Operations (2007)
1.44
1.22 1.2 1.18
0.6
0.43 0.43 0.39
0.27 0.250.19
0.13 0.10 0.09 0.08
0.44
1.56
0.84
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
87 88 89 90 91 92 93 94 95 96 97 98 99 2000 2001 2002 2003 2004
Piper Alpha Disaster
Safety in Performance Contracts
Clear Vision Introduced
ASA
BP Amoco Merger
Golden Rules of safety
Measures Days Away From Work Case Frequency (DAFWCF) per 200,000 hours
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Why is Integrity Management so important?
Flixborough UK 197427 fatalities
Phillips Pasadena US1989. 23 fatalities
Piper Alpha UK, 1988,167 fatalities
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Olympic Pipeline, Bellingham, June1999
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Belgium, July 2004
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Buncefield Oil Depot – Dec 2005
Texas City Refinery, March15 fatalities, many injured
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Thunder Horse PDQListed 21 degrees, now re-levelled
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Alaska Spill 2006
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the 3Ps- Managing Plant Processes and People
Three layers of protection to reduce the potential for major incidents and losses:
− plant – engineering hardware, control systems, physical layouts
− processes – management systems to identify, control and mitigate risks, and drive continuous operational improvement
− people – capability in terms of leadership skills, relevant knowledge and experience, and the organizational culture they create
‘Hard barriers’ are more reliable than ‘soft barriers’, but all ultimately rely on people
accidentor loss
‘hard’ barriers ‘soft’ barriershazard reduction
hazard
physical controls
generic systems
procedures people’s behaviors
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The role of leadership
PlantIntegrity
OMS & Process for Management
People& Culture
Leadership
HSE & OpsPerformance & Risk
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Evolution of BP HSE Management Systems & Management Interventions / Group Standards
Nothing formal
Pre-1990
ISRS (commercial
)
1991
OIAS(BP)
1994
gHSEr(BP)
1998 1999
PSIM Golden Rules
MAR Driving Safety
Green Book
Scoring system
checklist
General expectations-based
Specific Requirements
Impr
ovem
ent o
f HSE
m
anag
emen
t sys
tem
s
ISO management systems:9001 (Quality),14001 (Environment), 18001 (OH&S)
ASHEE(Amoco)
OES(ARCO)
BP Management Interventions
2002 2006
oms(BP)
The Journey:• gHSEr has served us well delivering
personal safety, • A series of interventions have been
used to supplement gHSEr in response to incidents, audit findings and need for further detail
• The BPMF and Code of Conduct provide context for a fundamental review
Group Standards• Integrity Mgt. • COW / Driving
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OMS Framework
Business Processes
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Operating Management System
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OMS Continuous Improvement
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Building Blocks of Operating
SustainableCompetitive
Advantage
Business Value Destruction
Neutral
Catastrophic Loss
Bus
ines
s Im
pact
Significant Risk Mitigation Essentials
Legal Compliance
Excellence
Business specific
Efficiency
Basics &BP Requirements
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Principles
We deliver what is promised and meet the expectations of
our key stakeholders
Measurement is used to understand and sustain
performance
We have fit for purpose and agile organizations staffed
with competent people.
Our leaders exhibit visible, purposeful and systematic
leadership and are respected by the
organizations they lead
Our plants, facilities and assets are fit for purpose throughout the
lifecycle of the operation
Our operations are continuously optimized to improve performance
and delivery from our assets
We document and rigorously follow procedures for safe and
effective operating
Staff at all levels of our organization understand and
manage risk
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47 Sub-Elements of Operating
ResultsMetrics & reporting Assessment & audit Performance review Budget management
Privilege to OperateRegulatory complianceBP requirementsCommunity & stakeholder relationshipsCustomer focusEthics/Social responsibility
OptimizationPlant optimization Energy efficiency Feedstock & Product scheduling & inventoryQuality assuranceTechnologyProcurement & materialsContinuous improvement
AssetsPlant integrityReliabilityMaintenance & turnaroundsFacility design & constructionProjects & Operations integrationDecommissioning &remediation
ProceduresOperating procedures Management of change Information management & document controlIncident managementPermit to work
RiskRisk assessment & managementSafetyProcess safetyHealthIndustrial hygieneSecurityEnvironmentCrisis management & emergency response
LeadershipLeadership and accountabilityOperations strategy & policyPlanning & controlResources & implementationCommunication & engagementCulture
OrganizationOrganization People & competenceOperating disciplineOrganizational agilityOrganizational learningWorking with contractors
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What is the Integrity Management Standard?
The Integrity Management (IM) Standard is a BP Group functional standard that outlines accountabilities, practices, procedures, and competencies meant to ensure the physical and operational integrity of BP’s facilities. The overriding objectives are to eliminate uncontrolled releases and prevent equipment or infrastructure failures so as to avoid serious harm to people, the environment and BP assets.
It contains 10 Elements, each dealing with a critical aspect of facility design, operation, and maintenance.
To whom does it apply ?……all wholly owned and operated BP Business Units, projects, facilities, sites and operations…..and BP shall endeavor to ensure JVs and contractors adopt the StandardWhen does it become operational ?By 31 December 2008 all BP operations must either meet the IM standard, have been granted an exception, or cease operations.
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IM Standard Programme 2003-2009
Appraise Select Define Execute Operate
• Loss of Containment identified as Group Level Risk
• Management Framework identifies IM as a Group Functional Standard
• Continuing Integrity Incidents occurring around Group
FunctionalAnalysis
• Review of existing standards and documents carried out
• Gaps identified ETPs EAs MAR
• New Draft IM Standard written by cross–segment team
• Series of Cross- segment workshops planned and carried out to identify costs and benefits
• Metrics proposed
GROUP By Q1 2005• Finalise and issue
Define Stage IM Standard
• Issue Group IM Guidance document
• Agree Metrics• Create
Communication strategy and plan.
Ongoing• Supporting material
developed to plan throughout 05
SEGMENTSBy end 2005 latest• Develop
implementation Guidance
• Identify gaps to meet IM Standard
• Identify business costs and produce implementation plans
• Input budgets to annual business planning cycle
Function/SegmentConsultation
Segment Planning withFunctional Support
Segment/ BUImplementation
• Ongoing validation of risk/benefits assessment based on actual performance
• Compliance with standard periodically reviewed via Internal Audit
• Effectiveness routinely reviewed and embedded in local and central performance mgmt
• Performance mgmt system core part of standard governance process
• Review and update of Standard by FunctionSegment/BU
Operations
• Issue Execute Phase IM Standard
• Phased execution based on business priorities within compliance period
• Segments/ BUs to close gaps versus plan
• Group and Segments to monitor and report progress against plan
• By end 2008 all applicable locations to be
In compliance
Exemption issued,
or Closed
2003 2004 Dec 05 Jan06 Dec08 Jan 09
PSIM Std 2001
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Components of the Group IM Standard
PSIM Standard
Major Accident Risk
And ETPs
IM Accountabilities (EAs, SPAs)
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Risk
IM s
tand
ard
–m
ostly
fr
eque
ncy
redu
ctio
n
MAR measures – mostly consequence reduction
IM s
tand
ard
–m
ostly
fr
eque
ncy
redu
ctio
n
MAR measures – mostly consequence reduction
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Group Integrity Management Standard
1. IM Accountabilities - appointment of SPAs & EAs 2. Competence – define critical IM competencies, assess staff & contractors3. Hazard Evaluation and Risk Management - identify hazards, assess & manage risks. Mandates MAR of Group Concern to be reported to GVP Group Technology with action plan.4. Facilities and Process Integrity - design for Integrity throughout lifecycle & compliance with STPs & operational practices 5. Protective Systems - Installation & maintenance of protective systems & devices based on hazard evaluations/risk assessments to prevent/ mitigate loss of containment6. Practices and Procedures - STPs to be developed consistent with Group ETPs7. Management of Change - all operations to apply a management of change process for temporary & permanent changes8. Emergency Response - Plans in place to respond to a serious IM related incident9. Incident Investigation and Learning - Investigate root causes of IM related incidents & share lessons to prevent reoccurrence10. Performance Management and Learning - IM Performance management system with KPIs. Annual IM Group risk report identifying top 5 risks per SPU by Engineering Authorities for Group Engineering Director.
IM Incident : Any incident where the root cause would be addressed by the IM Standard and there is actual or potential harm to people or the environment including loss of primary containment or failure of an engineered system.
PSIM Standard
Major Accident Risk
Engineering Technical Practices
IM Accountabilities (EAs, SPAs)
PSIM Standard
Major Accident Risk
Engineering Technical Practices
IM Accountabilities (EAs, SPAs)
PSIM Standard
Major Accident Risk
Engineering Technical Practices
IM Accountabilities (EAs, SPAs)
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IM Standard Programme
• Ongoing Risk Based implementation plans in the segments
• Monitoring of metrics/KPIs at Group and Segment level
• Raising IM awareness through Monthly Updates, New Group and segment websites, IM Standard Awareness DVD, Workshops.
• Quarterly performance management of IM to Group leadership
• Audit programme starting to be implemented with focus on action closeout by segments
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Integrity Management Learning
2. Integrity Management – Learning from Past Major Industrial Incidents - the Process Safety Booklet Series ( see last slide for details)
3. BP Internal Integrity Management Information Pack
• DVD with key IM Issues
• Understanding the effect of small undetected changes on Integrity Management
• Getting workforce conversations underway on workarounds
3. Recent Release – Imagine the difference you can make
•Integrity Management Standard Awareness film
•Group IM Website
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Process Safety Booklets BP/ I Chem. E /A I Ch E
BP Process Safety Series - Great sources of lessons learned both inside and outside BP
Winner of the Frank Lees Medal 2004 for the mostmeritorious publication on safety and loss prevention IChemE: Winner of the Frank Lees Medal 2004 for the most meritorious publication on safety and loss prevention.
Produced by BP and endorsed by IChemE's Loss Prevention Panel, these books were developed to complement safety training. They are ideal reference tools within the workplace, increasing awareness of hazards and helping operators to understand safe operating practices and procedures.
Confined Space Entry Hazardous Substances In Refineries Hazards of Air and Oxygen Hazards of Electricity and Static Electricity Hazards of Nitrogen and Catalyst Handling Hazards of Steam Hazards of Trapped Pressure and Vacuum Hazards of Water Hotel Fire Safety Liquid Hydrocarbon Tank Fires Safe Handling of Light Ends Safe Furnace and Boiler Firing Safe Tank Farms and (Un)loading Operations Safe Ups and Downs for Process Units Control of Work Integrity Management Learning from Past Major Industrial Incidents (A I Ch E)I10% IChemE member discount
For more information or to purchase, follow the links or contact Book Sales on tel: +44 (0)1788 578214, fax: +44 (0)1788 560833, email: [email protected]
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Some thoughts on Applying lessons learned successfully
BP Chemicals Plastics Fabrications Group 1995-1998
• Investigation
• Lessons Shared
• Lessons Learned
• Gaps identified and resourced to mitigate the risks
• Management leadership and commitment
• Operators belief in a safe workplace and continuously improving
• Culture where an unsafe act of process is corrected immediately
• Safety dramatically improved by factor of 20 in 2.5 years
• Success breads success
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