ScottishPowers

Asset Management & Process

Safety Journey
Martin Sedgwick Head Of Asset Management, ScottishPower

7th April 2011

Asset Management & Process Safety

Safety Contact

7th April 2011

Asset Management & Process Safety

Our Strategy...
The electricity generation industry is facing significant challenges...

The need for asset safety and efficiency are key

drivers within the power industry.

Process Safety retains focus on critical

operations, maintenance and engineering
processes and supports optimum performance
of assets - against the backdrop of ageing plant,
stringent legislation and cost pressures.

Through an integrated asset management

strategy that puts Process Safety at the top of
the agenda, our objective is to become a
High Reliability Organisation
7th April 2011

Asset Management & Process Safety

High Reliability Organisation

Our objective is to become a High Reliability Organisation

A High Reliability Organisation is one that

produces its product relatively error free
over a long and sustained period of time.
The two main attributes of a High Reliability
Organisation are:
Have a chronic sense of
unease they lack any
sense of complacency.
7th April 2011

Make strong responses

to weak signals - they set
their threshold for
intervening very low.

Asset Management & Process Safety

High Reliability Organisation

Governance &
Audit
PAS 55 is used as a
framework for Asset
Management
Process Safety is fully
embedded in culture and
process
Integrated audit
programme (ISRS 8) in
place that independently
checks processes and
procedures against best
practice.
Audit observations
proactively addressed
through continual
improvements
Implementation of a solid
governance framework
using visible metrics to
regularly review and
improve performance from
Board to Plant Level
Fully embedded integrated
system for managing
Audits, Actions, Incidents,
Near Misses and Risks

Integrated
Operations and
Maintenance

Leadership, Staff
Competence bad
Human Factors

Shift from reactive to

proactive , reliability led
maintenance strategy

Staff and contractors have

the required knowledge ,
skills and competence to
operate and maintain the
plant effectively and safely

Work captured, prioritised,

planned, scheduled and
executed using a proactive
approach
Common Maintenance
strategy across all plat
types by classification
Reliability principles are
used to establish best
practice maintenance
approaches
Lifecycle cost reporting and
asset performance used to
drive maintenance strategy
Common Operational
Standards established
Plant operated with in its
design parameters against
agreed procedures
Plant put back in to
operation safely following
outages

Emergency
Arrangements and
Business
Continuity
Staff and contractors have
the required knowledge
and skills to deal with all
emergency situations

Process Safety culture is

embedded in the
organisation, from senior
managers to all staff

Emergency Systems are

tested and practiced on a
regular basis

Robust Safety Rule

procedures and processes

Business Continuity Plans

are established and
regularly tested

Behavioural safety culture,

MIND safety and 5S
housekeeping principles
established

Off site and Crisis plans

are established and
regularly tested

Communication strategy
designed to deliver regular
updates on performance,
risks, issues and
improvement opportunities
All incidents and near
misses are reviewed and
lessons learned shared
with all staff at all sites

Engineering
Governance
Technical Risk
Management through
robust change processes,
underpinned by
Engineering Standards and
a Governance framework
Management of Change
processes are established
and rigorously followed
Criticality is assigned to all
assets using a common
risk based framework.
Life plans developed using
reliability engineering
methods appropriate to
asset criticality and
condition
ALARP principles
embedded and used to
asses technical risks

Alarm, Controls
and Instrument
Management
Alarms are prioritises and
actively managed to
resolution
No long term
standing/Shevled alarms
Alarm performance is in
line with best practice
Standard approach to
instrument calibration

Benchmarking
Benchmarking is carried
out with and without sector
to establish and maintain
industry leading position
Continual review of Best
Practice
Implementation of
improvement RoadMaps
to deliver a sustained
process
Integration with Iberdrola to
establish common
processes and practices

Control loops are optimised

and in control
Critical Instrumentation and
safety systems are fully
catalogued with robust
management and proof
testing is in place

Capital Investments are

made based on integrated
assessment of asset
condition and commercial
impact
A robust Technical
Recommendation (RT)
process is established to
share learning

Delivering Common Processes and Practices across the Iberdrola Group

Road Map
Asset Management & Process Safety Integrated RoadMap

Create Vision & Strategy

Establish
Leadership

Design Asset
Management &
Process Safety
Management
System

Implement
Foundation
Dashboard

Integration
&Automation Of
Dashboard

Review &
Governance

Benchmarking &
Continuous
Improvement

Pathway To A High Reliability Organisation

Establish
integrated
approach.
Develop
business case.

7th April 2011

Ensure
business buy in
at CEO and
Senior
Leadership
level.
Common level
of awareness
and
understanding
established.

Follow HSG254
six step
approach.
Structured
approach
delivers
comprehensive
and rigorous
analysis of
hazards, risk
control
systems.

Quick win
implementation
of dashboard
based on
manual KPIs.
Provides initial
assessment of
Process Safety
performance
and kicks off
cultural change.

Move to daily
tracking of KPIs
based on
automated
feeds.
Exploit drill
down and
trending to
drive
performance to
next level.

Asset Management & Process Safety

Establish
framework for
delivery of
sustained
performance
and
improvements.
Embed core
decision
making tool.

Maintain sense
of vulnerability
through
learning from
others and
challenging
business as
usual.

Create Vision & Strategy

Establish
Leadership

Design Asset
Management &
Process Safety
Management
System

Implement
Foundation
Dashboard

Integration
&Automation Of
Dashboard

Review &
Governance

Pathway To A High Reliability Organisation

Set Strategy & Vision

7th April 2011

Asset Management & Process Safety

Benchmarking &
Continuous
Improvement

EW Operational Excellence
The aim is simple we want to be best in our sector [John Campbell]

Why Best In
Sector?
To position Energy
Wholesales capabilities
favourably within the group.

To win the trust and respect of

stakeholders.

To achieve a sense of
purpose for our staff that will
direct and nurture their
talents.
To differentiate us from the
competition when talking to
investors and analysts.

7th April 2011

Asset Management & Process Safety

Benchmarking
Investigations, Research identified Benchmark companies...
Maersk Oil operational
dashboard
Ivara Worksmart
methodology
London Underground staff
competency
National Grid leadership
HSE application of HSG254
E.On technical risk
management
BP maintenance
management
DNV process safety
management system
IAM asset management
7th April 2011

Asset Management & Process Safety

ScottishPower LTA Rate Per 100,000 Hours

0.50
0.45
0.40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00

2003

7th April 2011

2010

Asset Management & Process Safety

Global Incidents
Worldwide events that have shaped Process Safety
BP Texas City Explosion

Buncefield

7th April 2011

Piper Alpha

ICL Stockline

Asset Management & Process Safety

Generation Sector Incidents

Increasing occurrence of Process Safety incidents in generation
Steam Turbine Commissioning - Poland

Hydro Plant - Sayano-Shushenskaya - Russia

Dallman Unit 31 Disaster - USA

7th April 2011

Asset Management & Process Safety

Kleen Energy USA

Insurance Claim Trends

Increasing Process Safety related insurance claims
$1,400

Power Losses Last 4 Years

$1,200

$1,000

Other

$800

Main Transformers
Generator

$600

Steam Turbine
Gas Turbine

$400

$200

$0
2006

7th April 2011

2007

Asset Management & Process Safety

2008

2009

Occupational and Process Safety

Frequent
High

Process

Occupational
Safety

Common Themes:
Safety
Leadership
Training
Leading &
Lagging KPIs

Process Safety
Management and
Asset Management

Asset Management & Process

Safety

First Aid

Major Injury

Single Fatality

Multiple Fatalities

Operational
Incidents

Plant Damage

Loss Of
Containment

Catastrophic Failure

Consequence Of Events
7th April 2011

Total Health
and Safety
(ISRS8)

Behavioural
Safety

Rare
Low

Frequency Of Events
Cost Impact $

Developing an integrated approach...

Asset Management & Process Safety

BPs View

7th April 2011

Asset Management & Process Safety

Health & Safety: The National Priorities

Investigations and securing
justice
Avoiding catastrophe1
The need for strong
leadership
Building competence
Involving the workforce
Creating healthier, safer
workplaces
Customising support for
SMEs
Taking a wider perspective
1To

reduce the likelihood of low frequency,

high impact catastrophic incidents...

7th April 2011

Asset Management & Process Safety

Industry Drivers
Process Safety and Asset Management now a major focus
The Baker Report
investigation into BP
Texas City
Regulators:
HSE HSG254 Developing
Process Safety
Indicators
OSHA 3132 Process
Safety Management
HSE RR509 Plant Ageing
Report

PAS-55 publicly
available specification for
Asset Management
Deep Water Horizon ?

7th April 2011

Asset Management & Process Safety

Asset Management and Process Safety

Best practice asset management is foundation for Process Safety...

Best Practice Asset

Management

Good Process
Safety Management
Focus on driving towards
best practice Asset
Management
Business agreed to
adoption of PAS-55
Integrated approach taken
2nd generator world wide
to achieve accreditation

Risk
Management

7th April 2011

Outsourcing

Communications

Documents

Data Control

Change
Management

Legal
Requirements

Asset Management & Process Safety

Emergency
Arrangements

Responsibility

Competence

Process Safety Health Check

Completed in 2008...
1.1 Operator Training Plan
8.3 Reporting of Technical Near Misses
1.2 Awareness of Plant Modifications
4
8.2 Operator Access to PSR
1.3 Use and Assessment of Processes
8.1 Shift & Handover Logs

1.4 Assessment of Operator Knowledge

7.4 Review of Plant Parameters

2.1 Plant Temperature/Pressure Regime

7.3 Normal vs Safe Condition

2.2 Emergency Procedures

2
7.2 Assessment of Normal Plant Condition

2.3 Defined Plant Limits

7.1 Normal Plant Condition

3.1 Alarm Strategy

6.7 Continuity of Isolations

3.2 Safety Valves

0
6.6 Use of Information

Developed process safety health

Check questionnaire

3.3 Overspeed Trips

6.5 Recording and Tracking of Information

3.4 Mechnical Protection Systems

6.4 Defined Limits

3.5 Functional Safety Systems

1.1 Operator Training Plan

7.2 Reporting of Technical Near Misses
1.2 Awareness of Plant Modifications
4
7.1 Operator Access to PSR

6.3 Method of Assessment

1.3 Use and Assessment of Processes

3.6 Documentation and Review

6.6 Use of Information

6.2 Assessmnet of Records

4.1 Updated and Accurate PIDs

1.4 Assessment of Operator Knowledge

6.5 Utilisation of On-line Monitoring

6.1 Plant Condition During Routine Inspections

2.1 Maintenance Policy

4.2 Control of PIDs

5.3 Storage of Plant Manuals

4.3 Storage of PIDs
5.2 Control of Plant Manuals
4.4 MIMIC6.4
Diagrams
Recording and Tracking of Information
5.1 Updated and Accurate Plant Manuals

2.2 Maintenance Procedures

6.3 Method of Assessment

6.2 Assessmnet of Records

2.4 Proof Testing

0
6.1 Plant Condition During Routine Inspections

2.5 Documentation of Safety Systems

Developed audit reports and radar

plots group and site

1.1 Correct Controlled Drawings

5.3 Storage of Plant Manuals
16.1 Sevice Contract for Safety Critical Equipment
1.2 Assessment of Controlled Drawings
4
15.3 Audit of Device Settings
1.3 Update of Minor Changes

5.1 Management and Control of Device Settings

Technical Reports via Documentum

3.1 Reporting of Maintenance Issues

1,4 Control of Drawings

and Update of Technical Report Actions

5.2 Control of Plant Manuals

2.1 Legal Requirements Associated with Plant Operation

2.2 Understanding of 61508

5.1 Updated and Accurate Plant Manuals

13.1 Use of Documentum

ng of Technical Near Misses

3.1 Storage of Local Engineering Standards

4.5 Mangement and Storage of Spares

3.2 Review of Maintenance Issues

3.3 Recording and Control Of Maintenance Issues

3.4 Identification of Repeat Issues

4.4 Assessment of Changes for Plant Items

3.5 Sharing of Issues
3.2 Assessment and Audit of Engineering Standards
4.3 Procurenment advised of Changes
4.1 Purchase and Verification of Spares
4.2 Assessment of New Items

3.3 Control of Engineering Standards

ems that are Fit For Purpose

.4 Details of Unit Differences

4.1 Training in Minimum Stds of Engineering

4.2 Identification and Communication of Minimum Standard

0.3 PSR Embedded Across Site

4.3 Definition of Minimum Standard

10.2 Use of PSR

10.1 Control of PSR
9.1 Review of Previous POIs
8.3 Consideration of all Plant Items

5.1 Control of National Standards

6.1 Implementation of PMP Process
6.2 Adequacy of PMP Process
6.3 Consideration of Multi-dscipline Issues

8.2 Review of Life Expectancy

7.1 Updated and Accurate Plant Manuals
8.1 Measurement of Life Expectancy
7.2 Control of Plant Manuals
7.3 Storage of Plant Manuals

7th April 2011

Produced process safety scoring

matrix

2.3 Functional Safety Systems Identification

15.2 Update of Device Settings

Completed programme of audits

covering all generation sites

Asset Management & Process Safety

Fed back results to site and

agreed improvement plan

Process Safety Themes

Key findings from health check...

Assessment

Staff Competency
Integrated Operations and Maintenance

Implementation

Sustainable Processes

Management of
Change

Plant Modification Process

Control

7th April 2011

Document Management
Engineering Drawings
Asset Management & Process Safety

Process Safety Climate Survey

Heat map across all sites showed areas that needed improvement...
Column Labels
Asset Management
Blackburn
Business Services
Question
Average of I have received training on hazard identification, control, and reporting in the last 12 months.
34%
100%
Average of In my opinion, process safety programs at my plant and/or business have - adequate funding.
55%
63%
Average of In my opinion, the people in my plant and/or business with specific process safety responsibilities have the - resources to make changes.
58%
50%
Average of In my opinion, process safety programs at my plant and/or business have - an adequate number of people responsible for process safety.
63%
50%
Average of The following receive the necessary process safety training to do their job safely - contractors.
47%
50%
Average of Workers are informed about the results of process related incident, accident and near miss investigations.
62%
100%
53%
100%
Average of Interlocks, alarms, and other process safety-related devices are regularly - maintained.
Average of The process safety training that workers receive in my plant and/or business is adequate to prevent process-related incidents, accidents and near misses
48%
100%
52%
100%
Average of Process equipment is regularly - maintained.
55%
100%
Average of Disabled or defected process safety devices are restored to service as soon as possible
Average of Staff and contractors never work around process safety concerns rather than report them
69%
100%
Average of Workers in this plant and/or business do not feel pressurised to work considerable additional hours from - their own sense of loyalty to their operating u
61%
100%
Average of adequate training and information has been provided by the company to allow me to undertake my responsibilities for Process Safety
48%
100%
Average of The process safety training that I have received allows me to recognise when a process should be shut down if safety critical interlocks, alarms or other p
33%
100%
Average of In my work group, process safety concerns are considered over achieving production goals.
55%
63%
55%
100%
Average of Written operating procedures are - kept up to date.
Average of I am satisfied with the process safety reporting system in this plant and/or business.
69%
13%
56%
63%
Average of In general, all staff and contractors report minor process-related incidents, accidents or near misses.
47%
100%
Average of Maintenance checklists and procedures are - easy to use.
Average of Operational pressures do not lead to cutting corners where process safety is concerned and the risk is always assessed.
64%
75%
Average of The following receive the necessary process safety training to do their job safely - new workers.
48%
100%
Average of In order to ensure process safety in my plant and/or business, inspection and maintenance are made high priorities
53%
100%
Average of Maintenance checklists and procedures are - easy to understand.
53%
100%
Average of The following receive the necessary process safety training to do their job safely - experienced workers.
52%
100%
Average of Interlocks, alarms, and other process safety-related devices are regularly - tested.
58%
100%
Average of Energy Wholesale has developed a clear roll-out plan for Process Safety
63%
100%
Average of Leaders in the business have been provided with adequate training and awareness for them to take a proactive role in Process Safety
57%
100%
Average of Written operating procedures are - regularly followed.
58%
100%
Average of Process equipment is regularly - tested.
50%
100%
Average of In this plant and/or business, process safety improvement is a long-term commitment that is not compromised by short-term financial goals.
67%
75%
Average of Workers at all levels of my plant and/or business participate in - incident and accident investigations.
77%
100%
Average of The following receive the necessary process safety training to do their job safely - my supervisor.
60%
88%
Average of Procedures exist in this plant and/or business that instruct operators to take action as soon as possible if safety critical interlocks, alarms, or other proces
48%
100%
Average of I am confident that the process safety issues are - appropriately resolved.
71%
88%
Average of The training that I have received does provide me with a clear understanding of the process safety risks in my plant and/or business
55%
100%
Average of Workers in this plant and/or business do not feel pressurised to work considerable additional hours from - plant management.
73%
100%
Average of I feel that I can influence the process safety policies implemented in this plant and/or business
77%
100%
Average of Workers in this plant and/or business do not feel pressurised to work considerable additional hours from - supervisors.
73%
100%
Average of In this plant and/or business, a formal hazard safety assessment is performed to ensure that changes that affect processes will be safe
69%
88%
Average of Corrective action is promptly taken when unsafe process safety conditions are brought to management's attention.
65%
100%
Average of Workers at all levels of my plant and/or business participate in - hazard reviews and analysis.
70%
100%
Average of Persons with appropriate supervisory authority and expertise participate in hazardous process-related activities, such as startup.
63%
63%
Average of The plant and/or business provides adequate training on hazard identification, control and reporting.
57%
100%
Average of Operators are empowered to take corrective action as soon as possible (including shutting down when appropriate) if safety critical interlocks, alarms, or
75%
100%
Average of Creating unapproved shortcuts around process safety is not tolerated in my plant and/or business
72%
100%
Average of There is usually sufficient staff in my work group to perform my job safely
80%
75%
Average of In my opinion, the people in my plant and/or business with specific process safety responsibilities have the - authority to make changes.
75%
88%
Average of after a process-related incident, accident or near miss, management is more concerned with correcting the hazard than assigning blame or issuing discipl
70%
100%
Average of When a process safety issue is involved, I can challenge decisions made by the following without fear of negative consequences - plant mangement.
70%
75%
Average of I know how to access appropriate process safety advice if I need it
57%
100%
Average of Workers in this plant and/or business do not feel pressurised to work considerable additional hours from - co-workers.
80%
100%
Average of I am confident that the process safety issues are - thoroughly investigated.
69%
100%
Average of I believe a culture exists in this plant and/or business that encourages raising process safety concerns.
74%
100%
69%
100%
Average of Plant and/or business management puts a high priority on process safety though actions and not just words.
Average of My supervisor makes sure that procedures relating to the following activities are safe before such activities are initiated - operations.
75%
100%
Average of My supervisor makes sure that procedures relating to the following activities are safe before such activities are initiated - maintenance.
75%
100%
Average of My supervisor takes action when a worker engages in a poor process safety practice.
81%
100%
Average of When a process safety issue is involved, I can challenge decisions made by the following without fear of negative consequences - my supervisor.
78%
75%
Average of I do not hesitate to report actions or conditions that raise a process safety concern, even when a co-worker is involved.
79%
100%
Average of My supervisor never asks me to operate an unsafe process, unless the risks have been assessed and action taken to manage these risks.
77%
88%
Average of I am responsible for identifying process safety concerns in my plant and/or business
78%
100%
Average of My supervisor puts a high priority on process safety through actions and not just words.
80%
88%
Average of I do not participate in work activities that are unsafe
81%
100%
Average of I can report hazardous conditions without fear of negative consequences.
87%
88%
Average of My supervisor will support me if I refuse to participate in unsafe work.
83%
63%
Average of My supervisor encourages me to identify and report unsafe conditions.
83%
100%

7th April 2011

Cathcart

Cockenzie

Cruachan

Daldowie

Damhead Creek

Hatfield

Hydro

Longannet

Rye House

Shoreham

Grand Total

29%

58%

68%

83%

65%

35%

67%

72%

41%

67%

58%

68%

68%

52%

58%

70%

69%

33%

39%

57%

45%

47%

56%

75%

68%

60%

63%

55%

63%

42%

64%

58%

41%

54%

59%

68%

57%

72%

42%

52%

50%

53%

68%

69%

58%

33%

61%

54%

65%

69%

54%

75%

47%

83%

72%

67%

67%

45%

63%

46%

61%

69%

79%

73%

50%

67%

72%

56%

69%

74%

64%

61%

46%

62%

52%

63%

78%

91%

92%

81%

60%

80%

83%

64%

54%

71%

67%

63%

73%

59%

58%

69%

65%

81%

63%

66%

57%

62%

59%

67%

83%

91%

92%

72%

62%

75%

78%

66%

46%

62%

61%

63%

78%

91%

67%

89%

60%

78%

84%

66%

57%

64%

63%

83%

65%

72%

83%

72%

64%

78%

67%

67%

50%

63%

79%

67%

68%

63%

42%

78%

67%

48%

59%

67%

54%

68%

74%

63%

70%

53%

58%

64%

67%

72%

72%

67%

50%

64%

73%

71%

78%

63%

50%

78%

67%

75%

72%

67%

68%

60%

67%

54%

73%

75%

92%

69%

70%

63%

64%

67%

50%

63%

70%

58%

72%

78%

75%

89%

64%

73%

71%

67%

46%

68%

73%

75%

70%

65%

67%

72%

64%

67%

74%

67%

64%

73%

69%

58%

65%

85%

58%

78%

64%

71%

70%

67%

50%

63%

71%

67%

78%

75%

83%

86%

66%

73%

66%

67%

68%

68%

68%

63%

77%

59%

67%

83%

61%

73%

80%

67%

64%

69%

74%

67%

73%

63%

67%

75%

67%

69%

70%

68%

64%

67%

59%

63%

77%

94%

92%

67%

67%

78%

82%

68%

50%

63%

71%

67%

78%

78%

75%

86%

67%

73%

66%

68%

57%

68%

74%

75%

72%

53%

67%

75%

68%

75%

72%

69%

43%

63%

60%

67%

75%

94%

92%

81%

67%

83%

86%

69%

71%

81%

72%

42%

63%

75%

58%

64%

68%

67%

78%

70%

68%

75%

73%

63%

72%

66%

83%

61%

70%

69%

71%

70%

57%

65%

71%

71%

65%

88%

75%

94%

67%

75%

82%

70%

57%

64%

66%

67%

82%

94%

92%

75%

69%

80%

82%

70%

86%

80%

64%

75%

85%

69%

83%

78%

68%

70%

74%

71%

61%

77%

74%

58%

78%

75%

42%

58%

72%

73%

66%

72%

61%

69%

77%

75%

73%

63%

58%

72%

72%

78%

74%

72%

54%

67%

77%

67%

78%

81%

67%

86%

73%

80%

66%

72%

64%

78%

71%

79%

82%

70%

67%

83%

68%

63%

80%

72%

57%

68%

82%

58%

82%

66%

67%

86%

71%

75%

75%

73%

64%

77%

80%

58%

70%

81%

42%

69%

72%

68%

67%

73%

75%

82%

72%

79%

80%

78%

50%

83%

68%

73%

68%

73%

68%

76%

80%

79%

68%

88%

42%

69%

71%

73%

67%

73%

57%

79%

74%

71%

78%

78%

67%

86%

71%

68%

76%

73%

79%

77%

73%

79%

80%

80%

75%

83%

70%

67%

79%

74%

64%

77%

75%

63%

75%

88%

58%

75%

72%

80%

75%

74%

61%

71%

80%

75%

78%

97%

33%

89%

73%

80%

84%

75%

68%

78%

84%

71%

80%

78%

67%

86%

72%

79%

81%

76%

57%

73%

79%

88%

93%

69%

83%

78%

71%

90%

79%

76%

79%

77%

72%

83%

82%

88%

92%

83%

74%

85%

82%

77%

82%

88%

81%

83%

83%

75%

58%

61%

75%

70%

71%

77%

89%

85%

78%

71%

80%

78%

75%

83%

74%

68%

79%

77%

64%

88%

84%

75%

82%

75%

58%

86%

77%

68%

67%

61%

83%

82%

83%

87%

78%

67%

83%

76%

78%

74%

78%

68%

83%

85%

71%

82%

81%

58%

83%

75%

83%

82%

78%

68%

77%

77%

83%

70%

91%

75%

83%

79%

73%

76%

78%

71%

78%

78%

79%

85%

73%

75%

86%

79%

69%

86%

71%

77%

86%

79%

78%

90%

58%

83%

77%

73%

81%

79%

89%

92%

78%

75%

83%

88%

67%

86%

76%

73%

82%

79%

57%

69%

82%

71%

82%

88%

75%

92%

80%

83%

83%

79%

57%

69%

85%

75%

85%

88%

75%

92%

78%

85%

84%

77%

78%

80%

68%

83%

81%

83%

75%

94%

58%

89%

79%

80%

75%

80%

71%

83%

85%

83%

88%

88%

67%

92%

80%

85%

84%

82%

75%

82%

85%

79%

92%

90%

67%

94%

82%

81%

81%

83%

89%

90%

86%

83%

88%

84%

75%

83%

82%

83%

79%

84%

75%

86%

82%

75%

87%

100%

92%

89%

82%

95%

83%

84%

93%

93%

80%

83%

88%

84%

58%

89%

81%

86%

89%

84%

89%

76%

87%

75%

88%

81%

92%

81%

84%

95%

80%

84%

79%

88%

90%

88%

93%

85%

50%

89%

87%

83%

80%

86%

79%

89%

90%

88%

88%

88%

67%

94%

85%

88%

87%

86%

89%

92%

90%

88%

92%

94%

67%

97%

85%

83%

88%

88%

Asset Management & Process Safety

Senior Management Review

Full commitment to programme established at workshop...

Senior management
gathered for away
day
Lessons Learned From
Texas City
Climate Survey
Process Safety Health
Check
Regulators View

Flip chart sessions to

design programme
Full commitment gained

7th April 2011

Asset Management & Process Safety

Road Map
Developed strategic plan across 8 discrete workgroups...

7th April 2011

Asset Management & Process Safety

Set Vision & Strategy

Establish
Leadership

Design Asset
Management &
Process Safety
Management
System

Implement
Foundation
Dashboard

Integration
&Automation Of
Dashboard

Review &
Governance

Pathway To A High Reliability Organisation

Establish Leadership

7th April 2011

Asset Management & Process Safety

Benchmarking &
Continuous
Improvement

Policy Established
Process Safety Management Principles published at group level...
The application of processes and procedures
to the identification, understanding and control
of dangers associated with the operation of
ScottishPowers assets that could result in a
major accident. A major accident has the
potential to result in death or serious injury to
one or more employees, contractors or
members of the public.

Adequate control of:

People,
Processes &
Plant

7th April 2011

Asset Management & Process Safety

25

Leadership Workshops
Developing Asset Management and Process Safety Leadership as a core competency...

Understand what Asset

Management and
Process Safety is all
about

Understand the
implications for EW and
the impact on your role
as a leader in EW

Use understanding to
engage and
communicate staff on
process safety

4 Key Objectives
7th April 2011

Asset Management & Process Safety

Understand how Asset

Management and
process safety will be
integrated into existing
H&S processes and
culture

Communications
Continuous dialogue with staff...
Process Safety Matters
brand established
Full transparency
Communications
Strategy:
Senior Management Road
Shows
Process Safety Time Out
DVD
Monthly Team Talks
Quarterly Newsletters
Process Safety Micro Site
Programme Road Shows
7th April 2011

Asset Management & Process Safety

Staff Involvement
E.G. Establishing a Competency Management System...

5. Record Info

4. Review &
check
competencies

1. Identify safety
critical activities
& define
Competence
Standards

Competency
Management
System

2. Select &
recruit against
Standards

Successful engagement of
staff and unions to assist
throughout
Identified and prioritised
safety critical activities in
Generation
Issued Operations,
Maintenance and Engineering
competence standards
Developed a competence
management procedure

3. Train
against St

Trained Competence
Assessors
Implemented a Competence
Management Information
System
7th April 2011

Asset Management & Process Safety

Operational Transformation Programme

Centrally coordinated, business driven approach...
7th April 2011

Asset Management & Process Safety

Operational Transformation
Overview of programme...

Approved By
Energy
Wholesale
Board In
November 2008

Mandatory in response to legislative and industry pressures brought

about by high profile failures
Corporate Responsibility and compliance with regulatory
requirements
Strong positive business case (c. 4.2m NPV) improved long-term
asset reliability, optimised investment and avoided capex. from
incidents

Programme
Objective

To achieve best practice Process Safety and

Asset Management

Programme
Approach

Provision of 5.2m within the 2009 and 2010 EW Change Programme

and ITBS capital budgets
The projects support the delivery of Energy Wholesale business plan
targets
Key milestones on executive directors personal objectives
Managed under EW Business Services - Evolution approach
7 Workgroups, 20 Projects

7th April 2011

Asset Management & Process Safety

Compelling Business Case

Based on integrated and fully embedded approach...
Achieving Safety and Environmental Compliance
Reducing the risk of catastrophic failures.

Avoiding regulator interventions.

Operational Assurance
Confidence that processes critical to the safe operation of assets are in place.

Meeting The Challenges Of Ageing Plant

Strong handle on the risks that are inherent in assets that have been, or will be, life extended.

Demonstrating Responsibility To Stakeholders

Clear strategy for managing the risks that key stakeholders are concerned about.

Maximising Return On Investment

Targeted investments based on solid information.

Underpinning Commercial Performance

Minimising costs driving out efficiencies.
7th April 2011

Maximising revenue through improved availability.

Asset Management & Process Safety

Programme Structure
7 Workgroups, 20 Projects
Integrated Operations
and Maintenance

Governance and Audit

Process Safety KPI
Dashboard
PAS55
Integrated Audit
Incident Reporting &
Investigation

Operations
Management
Condition Driven
Maintenance
CMMS Enhancements
Plant Commissioning

Engineering Governance

Leadership and Staff

Competency
Staff Competence
Process Safety
Leadership

Emergency
Arrangements, Critical
System Management
Emergency
Preparedness
Site Induction

Critical Training
Safety Rules Training

Alarm and Instrumentation

Management

Technical Risk
Management

Alarm and Control Loop

Management

Asset Information
Management
KKS

Critical Instrumentation
Testing and Calibration

Capital Investment

Investment Optimisation

Business lead projects, supported by central programme team...

7th April 2011

Asset Management & Process Safety

Achievements To Date
Building a strong capability in Asset and Process Safety Management...
Operational
Transformation
Programme

November
2009
June
2009
Process Safety
Management
System Developed

July
2008

2006 to
2008
Core
Processes &
Systems
Implemented
7th April 2011

Operational
Transformation
Programme
Established
Integrated
Approach
Developed

KPI Dashboard
Introduced
ORG Governance
Established

PAS-55
Accreditation
Achieved
Reliability
Engineering
Established At Key
Sites
Leadership Training

December
2010
Alarm
Management
System
Operational
New Operations
Standards Issued
Electronic Shift
Logging Live
Staff Competency
Implemented

ISRS8 Pilot
Cintellate - Incident
Reporting &
Investigation

Asset Management & Process Safety

New Maintenance
Planning Tools

Programme Milestones
Set on personal objectives for Executive Director...

7th April 2011

Asset Management & Process Safety

PAS-55 Accreditation
Energy Wholesale achieved full PAS-55 accreditation...

Achieved PAS-55 2008

accreditation in stages
Coal December 2008
Gas and Hydro May 2009

John Campbell and Frank Mitchell are presented

with the PAS-55 Certificate by Lloyds Register
Quality Audit (LRQA)

Second power company world

wide to achieve PAS-55
accreditation
First surveillance audit completed
in November 2009
2 minor non-conformances
closed
No new non-conformances
raised
Regular surveillance audits

7th April 2011

Asset Management & Process Safety

Set Vision & Strategy

Establish
Leadership

Design Asset
Management and
Process Safety
Management
System

Implement
Foundation
Dashboard

Integration
&Automation Of
Dashboard

Review &
Governance

Pathway To A High Reliability Organisation

Design Asset Management and

Process Safety Management System
7th April 2011

Asset Management & Process Safety

Benchmarking &
Continuous
Improvement

Process Safety
Understanding hazards & creating barriers (People, Process & Plant )...
Definition of
Process Safety
The collective name for
the measures, systems,
procedures and policies
which prevent incidents
and / or protect people
and the environment
from the effects of major
accidents.
Keeping the process
inside the equipment.

Disciplines
Involved
The full asset
management lifecycle:
Design / Construction
Operations
Maintenance
Engineering

Process Safety
Management
Understand Hazards
Identify Risk Control
Systems (Barriers)
Develop Leading and
Lagging Indicators

February 2010 Kleen Energy CCGT Power Plant US natural gas

explosion during purging and cleaning of pipework killed 6 workers
Investigation found poor venting practices and hot work still in
progress

HAZARD

HARM
August 2009 Sayano-Shushenskaya Hydro Plant, Russia
turbine top cover failed, resulting flood killed 76 workers.
Investigation found lack of maintenance, flawed plant modifications
and a culture of risk taking.

7th April 2011

People
Environment
Assets

Major
Accident
Trajectory

Asset Management & Process Safety

Leading
Indicators
Lagging
Indicators

Application Of HSG254...
Management system underpinned by rigorous application of HSG254
42 Risk Control Systems

Event Frequency

Fatalities

Probability

Remote risk with current mitigations

0.001

0.001

Possibility but no expectation

0.01

0.01

Expectation in the UK in 10 years

0.1

10

0.1

Expectation in the UK in a Year

Expectation more than once a year

10

Ranking

Reference

Frequency

Consequence

Probability

Product

3 Classifications Of
Lagging Indicators

PS17.

10

0.1

0.1

Failure of HP feed system pipework

PS 2

10

0.1

0.1

Major Loss of Containment from a High Temperature Pipework

10

0.1

0.1

3
4

88 Leading Indicators
7th April 2011

Asset Management & Process Safety

0.1
0.1

Pipe rupture and catastrophic weld failure from a major low temperature steam line
Explosive External Boiler Tube Rupture

EWG5

0.1

Switchgear arc flash explosion whilst locally operated

CSW3

0.1

Walkways and Gratings

PS3.

0.1

0.03

Rupture of boiler integral furnace circulating and saturated steam pipework, fabricated in C steel
materials with an internal diameter > 65mm

PS10.

10

0.1

0.01

PS8.

10

0.1

0.01

De-Aerator Vessel Rupture

10

PS4.

0.01

0.01

Rupture of boiler drains pipework systems including blowdown systems.

12

New
Incident
Reporting
Process

PS5.
PS7.

Hazard

11

90
Hazards

PS25.
PS11.
PFS2

4
4

1
1

0.01
0.01

0.01
0.01

Catastrophic failure of boiler feedwater pipework.

Auxiliary Steam and minor systems

Combustion generated over pressurisation of enclosures and pipework

13

EWG6

0.01

Electrocution due to contact with live conductors

14

CSW11

0.001

0.01

Falling claddings and objects from buildings

15

CSW12

0.01

Integrity of buildings fabric to personnel access.

16

CSW17

0.001

0.01

Spalling of concrete from structures

Process Safety Management System

8 Risk Control Areas underpin Energy Wholesales PSMS
Plant

Process

Operation &
Compliance Audit

Technical
Risk
Management

Plant Modification
Procedure

External Audit

Critical
Systems

Emergency
Supplies

People

Integrated Internal Audit

Alarm and
Instrument
Management

Control Systems

Action Tracking

Controlled Documents
(Policies, Procedures,
Standards)

Maintenance
Management

Operations
Management

Staff
Competence

Work Prioritisation

Startup /Shutdown
Procedures

Communications

Fire Systems
Critical
Instrumentation

Engineering
Standards
Technical Knowledge
Management

HV Electrical
Systems

Asset Investment
Civil Asset
Inspections
Pressure System
Safety Regulations

7th April 2011

Work Identification,
Routine Plant
Inspections

Main Protection
Systems

Oil Separation
Systems

Routine Plant
Checks

Leadership

Routine Testing

Training Needs
Analysis

Work Planning,
Scheduling
Protective Systems
/ Devices

Design Review

Work Execution

Alarm Systems

Emergency
Preparedness

Emergency
Planning

Plant Status Review /

Technical Risk Register

Strategic Spares

Recovery

Personal Risk
Assessment

Business
Continuity Planning
Shift Handover

Training Plan

Company Safety
Rules Management

Competency
Assurance

Plant Limiting
Conditions

Asset Management & Process Safety

Staff Knowledge
Management

Environmental
Containment
Systems

Classification Of Incidents
3 tier approach based on API guidance...

Major
Process
Safety
Incident

Classification of Process Safety Incidents

based on benchmarking with HSE and API
guidance:
Major Process Safety Incident:
Equipment damage > 100k
Loss of Production > 24 hours
Injuries / fatalities (RIDDOR)

Significant
Process
Safety
Incident

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

Minor Process Safety Incident:

Demand on safety system
Process upset control loops out of
control, equipment in manual
Breaches of plant limiting conditions

7th April 2011

Asset Management & Process Safety

KPI Specifications Are Key

Crib sheets used to specify each KPI in detail
Provides definition of
KPI:
Objective
Definition
Data Source
Data Aggregation /
Calculation
Targets

Data Recording
Guidelines
Formal sign off by
senior managers
Staging environment
used to trial KPIs
7th April 2011

Asset Management & Process Safety

Set Vision & Strategy

Establish
Leadership

Design Asset
Management &
Process Safety
Management
System

Implement
Foundation
Dashboard

Integration
&Automation Of
Dashboard

Review &
Governance

Pathway To A High Reliability Organisation

Implement Foundation Dashboard

7th April 2011

Asset Management & Process Safety

Benchmarking &
Continuous
Improvement

KPIs Based On 4 Icons

A simple concept that all staff can buy in to...

Leading Indicators
Performing
Significantly
Below
Requirement

Performing
Below
Requirement

Performing
At Or Above
Requirement

Best Practice
Performance

Minor
Process Safety
Incident

No
Process Safety
Incidents

Lagging Indicators

Major Process
Safety Incident

7th April 2011

Significant
Process Safety
Incident

Asset Management & Process Safety

Process Safety Dashboard

Provides near time view of Process Safety performance...

7th April 2011

Asset Management & Process Safety

Process Safety Dashboard

Philosophy is to visualise Swiss Cheese Model......

7th April 2011

Asset Management & Process Safety

Process Safety Dashboard

Donut charts...

7th April 2011

Asset Management & Process Safety

Process Safety Dashboard

Trends show the positive impact that KPIs have had on performance

7th April 2011

Asset Management & Process Safety

Results Are Clear To See

Trends show the positive impact that KPIs have had on performance

7th April 2011

Asset Management & Process Safety

Set Vision & Strategy

Establish
Leadership

Design Asset
Management &
Process Safety
Management
System

Implement
Foundation
Dashboard

Integration
&Automation Of
Dashboard

Review &
Governance

Pathway To A High Reliability Organisation

Integration & Automation Of

Dashboard
7th April 2011

Asset Management & Process Safety

Benchmarking &
Continuous
Improvement

Core IT Systems Established

Core set of IT integrated platforms established across all sites...
Core best of breed
platforms provide foundation:
Maximo maintenance
management
PI plant performance
database
Documentum document
management
EXP reliability engineering
Eclipse safety from the
system
Opralog electronic shift
logging
Cintellate HSEQR
PSS alarm and control loop
management

Middleware used to integrate

applications to support end to
end processes
7th April 2011

Asset Management & Process Safety

KPI Dashboard Architecture

An enterprise scale solution...

Source
Systems

Reporting and
Analysis

Data Processing

Maximo
(CMMS)

EXP

KPI Data
Mart

Alarm
Management

ETL

(Incident Management)

Integrated
Transactional
Data Mart

Cintellate

ETL

(Technical Risks)

ETL

PSR

Staging Area

(Reliability Engineering)

Opralog
(Shift Logging)

25th March 2011

Asset Management & Process Safety

Dashboard

Ad Hoc Analysis (Business Objects)

Scheduling

Further HSE Guidance

Shift Logging

Operational
Control Indicators
Lagging Indicators

Control Loops Out Of Control

Equipment In Manual

Generic
Lagging Indicators

Leading 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)

Statutory Inspections
Completed (eg PSSR)
Audits To Programme
Action Closure
Training and Competence
Procedures Up To Date

Leading Indicators
Inspection and Maintenance of
Control Systems and Critical
Systems
Alarm Management
Control Loop Performance
Completion Of Operational
Routine Checks / Testing

25th March 2011

Programme
Indicators

Leading Indicators

Maintenance
Engineering

Asset Management & Process Safety

Further HSE Guidance

Shift Logging

25th March 2011

Asset Management & Process Safety

Operations Management
Operations Standards & Competencies...
12 Operational Standards
identified, including:
Operations
Management

Shift Handover
Rounds & Routines
Emergency Operations

Startup /Shutdown
Procedures

Plant Performance

Routine Plant
Checks

9 Competence Standards
identified, including:

Routine Testing

Shift Handover

Shift Handover
Routine & Critical Operational
Testing

Company Safety
Rules Management
Plant Limiting
Conditions

7th April 2011

Plant Limiting Conditions

Staff involved in safety critical activities will be assessed

every 2 years to ensure their competence in that activity
is maintained and developed.

Asset Management & Process Safety

Start Up & Shut Down

Opralog Development

Phase One:
Standard Logs developed at all
sites
Site specific logs designed by
Super User
Standard report templates available
Opralog integrated with PI and
Maximo

Phase Two:
Opralog integrated with Incident
reporting, Alarm Management and
Process Safety KPIs
Advance logs developed by User
Group, including key Alarms

7th April 2011

Asset Management & Process Safety

Plant Limiting Conditions, Chronological & Handover Logs

7th April 2011

Asset Management & Process Safety

Further HSE Guidance

Alarm Management

Operational
Control Indicators
Lagging Indicators
Breaches Of Plant Limiting
Conditions (eg overpressure,
overspeed, over temp)

Generic
Lagging Indicators

Leading 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)

Statutory Inspections
Completed (eg PSSR)
Audits To Programme
Action Closure
Training and Competence
Procedures Up To Date

Leading Indicators
Inspection and Maintenance of
Control Systems and Critical
Systems

Completion Of Operational
Routine Checks / Testing

25th March 2011

Programme
Indicators

Leading Indicators
Critical processes undertaken
correctly
Operations
Maintenance
Engineering

Asset Management & Process Safety

Further HSE Guidance

Alarm/Control Loop Management

25th March 2011

Asset Management & Process Safety

Further HSE Guidance

Reliability Engineering

Operational
Control Indicators

Generic

Programme
Indicators

Lagging Indicators

Lagging Indicators

Leading Indicators

Active Monitoring and Logging:

Breaches Of Plant Limiting
Conditions (e.g. overpressure,
overspeed, over temp)
Control Loops Out Of Control
Equipment In Manual

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)

Statutory Inspections
Completed (eg PSSR)
Audits To Programme
Action Closure
Training and Competence
Procedures Up To Date

Leading Indicators
Inspection and Maintenance of
Control Systems and Critical
Systems
Alarm Management
Control Loop Performance

Leading Indicators

Maintenance
Engineering

25th March 2011

Asset Management & Process Safety

Further HSE Guidance

Reliability Engineering

25th March 2011

Asset Management & Process Safety

Further HSE Guidance

Maintenance Management

Operational
Control Indicators

Generic

Programme
Indicators

Lagging Indicators

Lagging Indicators

Leading Indicators

Active Monitoring and Logging:

Breaches Of Plant Limiting
Conditions (eg overpressure,
overspeed, over temp)
Control Loops Out Of Control
Equipment In Manual

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)

Statutory Inspections
Completed (eg PSSR)
Audits To Programme
Action Closure
Training and Competence
Procedures Up To Date

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

25th March 2011

Operations
Engineering

Asset Management & Process Safety

Further HSE Guidance

Maintenance Management
Capture
Knowledge

Capture
Policy
Strategy

Design
O&M
Strategy

Review
Indicators

Implement
O&M
Strategy

Monitor
Condition
Trigger

25th March 2011

Asset Management & Process Safety

Further HSE Guidance

Incident Management

Operational
Control Indicators
Lagging Indicators

Generic
Lagging Indicators

Active Monitoring and Logging:

Breaches Of Plant Limiting
Conditions (eg overpressure,
overspeed, over temp)
Control Loops Out Of Control
Equipment In Manual

Leading Indicators
Inspection and Maintenance of
Control Systems and Critical
Systems
Alarm Management
Control Loop Performance
Completion Of Operational
Routine Checks / Testing

25th March 2011

Leading Indicators
Critical processes undertaken
correctly
Operations
Maintenance
Engineering

Asset Management & Process Safety

Programme
Indicators
Leading Indicators

Further HSE Guidance

Incident Management

25th March 2011

Asset Management & Process Safety

Further HSE Guidance

Technical Risks

Operational
Control Indicators

Generic

Programme
Indicators

Lagging Indicators

Lagging Indicators

Leading Indicators

Active Monitoring and Logging:

Breaches Of Plant Limiting
Conditions (eg overpressure,
overspeed, over temp)
Control Loops Out Of Control
Equipment In Manual

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)

Statutory Inspections
Completed (eg PSSR)
Audits To Programme
Action Closure
Training and Competence
Procedures Up To Date

Leading Indicators
Inspection and Maintenance of
Control Systems and Critical
Systems
Alarm Management
Control Loop Performance
Completion Of Operational
Routine Checks / Testing

25th March 2011

Leading Indicators
Critical processes undertaken
correctly
Operations
Maintenance

Asset Management & Process Safety

Further HSE Guidance

Technical Risks

Increasing Risk

Unacceptable
Region
Tolerable
Region Risk is
tolerated if it is
managed to
ALARP levels

Broadly Acceptable
Region

25th March 2011

Asset Management & Process Safety

Set Vision & Strategy

Establish
Leadership

Design Asset
Management &
Process Safety
Management
System

Implement
Foundation
Dashboard

Integration
&Automation Of
Dashboard

Review &
Governance

Pathway To A High Reliability Organisation

Review & Governance

7th April 2011

Asset Management & Process Safety

Benchmarking &
Continuous
Improvement

Group Governance Process

Cascade up approach...
Review
Level

Energy
Wholesale

Generation

Governance Body

Review
Guidance

Frequency

Energy Wholesale Board

Consolidated
Indicators
Major or Key
Incidents

Monthly

Operational Risk Group (ORG)

Business Wide
Indicators
Significant
Incidents
Trends

Monthly

Monthly

Daily

Generation
Groups

Coal PRM

Gas PRM

Hydro PRM

Group Indicators
Significant &
Moderate
Incidents
Close-out rates

Power
Stations

LN, CK, DD

RH , DC, SH,
BB, HT

CN, GW, LK

Local Indicators
All Incidents

7th April 2011

Asset Management & Process Safety

68

Process Safety Dashboard

Monthly Reports support Operational Risk Governance meetings

7th April 2011

Asset Management & Process Safety

Operational Risk Group (ORG)

Overview of standard agenda items...

Leading Indicators
Performance
(KPI Dashboard)
Incident Reviews
(Cintellate)
Technical Risks
Benchmarking
Legislation Update

7th April 2011

Asset Management & Process Safety

Set Vision & Strategy

Establish
Leadership

Design Asset
Management &
Process Safety
Management
System

Implement
Foundation
Dashboard

Integration
&Automation Of
Dashboard

Review &
Governance

Pathway To A High Reliability Organisation

Benchmarking & Continuous

Improvement
7th April 2011

Asset Management & Process Safety

Benchmarking &
Continuous
Improvement

Taking Process Safety Forward

ScottishPowers commitment to process safety...

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

"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

ScottishPower received the IChemE health and safety

award for the process safety KPI dashboard project

7th April 2011

Asset Management & Process Safety

Case Study
http://www.hse.gov.uk/comah/working.htm

7th April 2011

Asset Management & Process Safety

Benchmarking
Drive to improve Process Safety both within and outside our sector...
All competitors have Process
Safety Initiatives e.g.
industry forum held on 2nd
June 2010 to share
experiences
Attendance at conferences to
share approach and
experiences:
UKOPA Process Safety
Working Group
CIA
Energy Institute
BP Maintenance Conference
IGE Annual Conference

Significant number of other

companies are now asking to
benchmark with
ScottishPower
7th April 2011

Asset Management & Process Safety

Learning Points
Key learning points from ScottishPowers journey to date...
For the first time, senior management is given near time visibility of core
processes
Introduction of Process Safety KPIs has driven improvement across the
business
Maintenance improvements backlog, preventative maintenance, planning
Technical Risk visibility and mitigation

Business benefits also now being realised e.g. insurance, plant availability
increasing, opex and capex reductions
Key success factors
Buy in and commitment from senior management
Involvement of staff in designing, developing and embedding
Clear definition of each KPI is essential
Common processes across all business units
Delivery of sustainable solution can only be achieved using integrated IT platforms
ie automatic generation of KPIs
7th April 2011

Asset Management & Process Safety

Learning Points
Key learning from benchmarking...

Benchmarking shows that other leading companies have

taken very similar journeys to ScottishPower
Asset Management and Process Safety are not a bolt on
an integrated approach is required
Asset Management and Process Safety has to be a
strategic initiative
Establishing Leadership
leading by example, ensuring balanced approach
Changing the Culture
dont fight the findings, fight the cause, involving staff at all stages
Business Change
to put in place sustainable, measureable processes
Long Term Commitment
requires continual review and focus
7th April 2011

Asset Management & Process Safety

Maintenance Optimisation
KPIs ensure realiable information is available for detailed analysis...
Site
BB
BB
BB
BB
CK
CK
CK
CK
CN
CN
CN
CN
DC
DC
DC
DC
DD
DD
DD
HM
LT
LT
LT
LT
RH
RH
RH
RH
RH
SH
SH
SH
SH

Group
Type
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL
CRITICAL

7th April 2011

Group
Code
EPS
FPS
HES
UPS
EPS
FPS
HES
UPS
EPS
FPS
HES
UPS
EPS
FPS
HES
UPS
FPS
HES
UPS
EPS
EPS
FPS
HES
UPS
EPS
FPS
HES
OSS
UPS
EPS
FPS
HES
UPS

MTTR
MTBF
Description
Days
Days
Emergency Power Suppli
0
183
Fire Protection Systems
0
365
HV Electrical Systems
Unit Protection Systems
2
122
Emergency Power Suppli
10
21
Fire Protection Systems
16
7
HV Electrical Systems
18
12
Unit Protection Systems
32
6
Emergency Power Suppli
42
46
Fire Protection Systems
252
46
HV Electrical Systems
296
13
Unit Protection Systems
249
21
Emergency Power Suppli
25
73
Fire Protection Systems
14
5
HV Electrical Systems
1
61
Unit Protection Systems
Fire Protection Systems
0
183
HV Electrical Systems
13
365
Unit Protection Systems
0
365
Emergency Power Suppli
0
365
Emergency Power Suppli
23
6
Fire Protection Systems
37
1
HV Electrical Systems
38
1
Unit Protection Systems
25
3
Emergency Power Suppli
3
37
Fire Protection Systems
31
13
HV Electrical Systems
1
122
Oil Separation Systems
40
46
Unit Protection Systems
26
17
Emergency Power Suppli
5
20
Fire Protection Systems
12
9
HV Electrical Systems
8
91
Unit Protection Systems
8
183

Total
Proactive
Labour
Costs
96
1,320
384
528
17,748
3,960
14,670
7,074
3,096
1,224
3,078
594
4,008
43,632
4,656
2,448
0
216
0
2,904
3,510
22,662
33,174
2,160
2,352
768
504
120
720
123,768
2,256
4,608
15,360

Total
Reactive
Labour
%
Proactice
Costs
72
57
48
96
0
100
2,448
18
2,412
88
2,340
63
3,114
82
7,470
49
738
81
270
82
378
89
792
43
264
94
7,152
86
168
97
0
100
162
0
2,736
7
18
0
48
98
17,136
17
49,770
31
33,642
50
12,150
15
312
88
1,272
38
144
78
456
21
768
48
3,336
97
2,736
45
408
92
624
96

Asset Management & Process Safety

Now driving towards

best practice
maintenance:
Mean Time Between
Failure
Mean Time To Repair
Cost Of Maintenance
Compliance With
Maintenance Strategy
Planning Out To 3
Months Ahead
Asset Health Indices

Top 10 KPI Reporting

Operational Control Indicators

Generic Indicators
Programme Indicators
7th April 2011

Asset Management & Process Safety

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

2008

2009

2010

2011

Plant Availability

64.5%

77.0%

82.3%

83.0%

EFOR1

10.1%

9.2%

6.4%

5%

Generation Costs
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0

22% increase in plant

availability
50% reduction in plant
forced outage rates

2008
7th April 2011

29% reduction in
Operations and
Maintenance costs

2009

2010

2011

Asset Management & Process Safety

Reduction in Insurance
costs and deductable
period

Wrap Up...

7th April 2011

Asset Management & Process Safety