Learning Lessons From Incidents

37
Learning Lessons from Incidents - BP’s Integrity Management Standard OPERA Risk Management Seminar 27 March 2007 Peter Elliot - Head of Integrity Management, BP

Transcript of Learning Lessons From Incidents

Page 1: Learning Lessons From Incidents

Learning Lessons from Incidents- BP’s Integrity Management StandardOPERA Risk Management Seminar

27 March 2007 Peter Elliot - Head of Integrity Management, BP

Page 2: Learning Lessons From Incidents

2

“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

Page 3: Learning Lessons From Incidents

3

Titanic 1912Titanic 1912

Page 4: Learning Lessons From Incidents

4

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

Page 5: Learning Lessons From Incidents

5

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

Page 6: Learning Lessons From Incidents

6

BP’s heritage

Page 7: Learning Lessons From Incidents

7

What we do

BUSINESS SEGMENTS

RESOURCESExploration &

Production

CUSTOMER FACING

Refining & MarketingGas, Power & Renewables Integrated Supply & Trading

(including Acetyls & Aromatics from Petrochemicals)

Page 8: Learning Lessons From Incidents

8

Our global presence

Oil

Gas

Chemicals

Refining

Market positions An opportunity and a responsibility

Page 9: Learning Lessons From Incidents

9

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

Page 10: Learning Lessons From Incidents

10

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

Page 11: Learning Lessons From Incidents

11

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

Page 12: Learning Lessons From Incidents

12

Why is Integrity Management so important?

Flixborough UK 197427 fatalities

Phillips Pasadena US1989. 23 fatalities

Piper Alpha UK, 1988,167 fatalities

Page 13: Learning Lessons From Incidents

13

Olympic Pipeline, Bellingham, June1999

Page 14: Learning Lessons From Incidents

14

Belgium, July 2004

Page 15: Learning Lessons From Incidents

15

Buncefield Oil Depot – Dec 2005

Page 16: Learning Lessons From Incidents

Texas City Refinery, March15 fatalities, many injured

Page 17: Learning Lessons From Incidents

17

Thunder Horse PDQListed 21 degrees, now re-levelled

Page 18: Learning Lessons From Incidents

18

Alaska Spill 2006

Page 19: Learning Lessons From Incidents

19

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

Page 20: Learning Lessons From Incidents

20

The role of leadership

PlantIntegrity

OMS & Process for Management

People& Culture

Leadership

HSE & OpsPerformance & Risk

Page 21: Learning Lessons From Incidents

21

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

Page 22: Learning Lessons From Incidents

22

OMS Framework

Business Processes

Page 23: Learning Lessons From Incidents

23

Operating Management System

Page 24: Learning Lessons From Incidents

24

OMS Continuous Improvement

Page 25: Learning Lessons From Incidents

25

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

Page 26: Learning Lessons From Incidents

26

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

Page 27: Learning Lessons From Incidents

27

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

Page 28: Learning Lessons From Incidents

28

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.

Page 29: Learning Lessons From Incidents

29

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

Page 30: Learning Lessons From Incidents

30

Components of the Group IM Standard

PSIM Standard

Major Accident Risk

And ETPs

IM Accountabilities (EAs, SPAs)

Page 31: Learning Lessons From Incidents

31

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

Page 32: Learning Lessons From Incidents

32

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)

Page 33: Learning Lessons From Incidents

33

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

Page 34: Learning Lessons From Incidents

34

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

Page 35: Learning Lessons From Incidents

35

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]

Page 36: Learning Lessons From Incidents

36

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

Page 37: Learning Lessons From Incidents

37