PSM Key Performance Indicators

Nexen Energy ULC

SEPT. 26, 2017 CCPS CALGARY REGIONAL MEETING
Agenda

1. Why use KPIs, What to Measure?

2. Two Approaches at Nexen
3. Oil Sands PSM Dashboard
4. Current Status and Next Steps

2
 PSM Pyramid Model
• Aligned with Heinrich’s
classic safety pyramid
• “Defects” in plant,
processes or people can
lead to undesirable
outcomes
• Disciplined and
systematic approach to
identifying and addressing
defects reduces the
likelihood of escalating
consequence events
• A culture that proactively
seeks out defects and
maintains a sense of
chronic unease is a
prerequisite
3
Process Safety & Reliability
Cultural Maturity Model
Number of Visible Defects

4
Fleming et al’s HSE Cultural Maturity Model
PSM Pyramid Model
Oil Sands PSM Dashboard is aligned with the API/ANSI RP 754 pyramid
model
• Improve visibility and awareness of PSM performance, based on leading
indicators (familiar model from personal safety)
• More comprehensive view of the health of the people, plant and process
barriers, across silos
• Enable benchmarking of Best in Class performers given wide adoption
of the API model

ABB Ltd. white paper “Avoiding the 'watermelon' effect

Are we doing enough in the process industry to prevent the 5
API/ANSI RP 754 next major accident?“
PSM Barrier Model

• Nexen Offshore
dashboards are
focused on Major
Accident Hazard
prevention,
mitigation and
recovery
• Safety Case
regulated
jurisdiction
• KPIs are organized
into People,
Process and Plant;
as well as asset
section and
traditional Barriers
6
PSM Barrier Model

• Overall “Health” indicator for assets is trended

• Focus is on gains and losses (strengthened or weakened barriers) and
persistent underperformance
7
Note – data for illustration purposes only
PSM Review Cycle

Week 1 Week 2 Week 3 Week 4

Input Data KPI Owner Team Division ELT Stewardship

Review Stewardship Quarterly
And With Operations
At Weekly HSE Presentation
PSM Analysis KPI Meeting (site detailing key issues
PMT) and action plan to
address

Action
Items and
Data Action Plan for Continuous Improvement and
Integrity Barrier Maintenance
Questions

DECISIONS &
DATA QUALITY
DIRECTION
PSM Dashboard

Tier 1 PSEs

Tier 1
PSEs Tier 2 PSEs

Tier 2 PSEs
Small Losses of Containment, PS
Near Miss Reports, Challenges to
Tier 3 Safety System Safety Barriers
Challenges

Management system procedures

Tier 4 Operating Discipline & compliance
Management Systems

Used in Alberta, a Non-Safety Case Regulated

Jurisdiction
9
Note – data for illustration purposes only
PSM Dashboard Breakdown

• Base Tier is organized

by PSM elements (8 of Tier 1

them). PSEs

• Each PSM Element has Tier 2 PSEs

one or more KPIs to Tier 3 Safety

System Challenges

indicate the health of Tier 4 Operating Discipline &

that management Management Systems

system element

PSSR ERP PSI SWP HIRA PSSR ERP PSI SWP HIRA

Management Conduct of Asset Management Conduct of Asset

of Change Operations Integrity of Change Operations Integrity

Area 1 Tier 4 Management Systems Area 2 Tier 4 Management Systems

Results can be presented by Division, Plant or Area

10
Note – data for illustration purposes only
 Yellow if <=10
Overdue
Red if >10
2.75

PSM Dashboard Hazard

Identification and
PHA (incl. Re-HAZOP)
Action Items Overdue
Green if =0
Yellow if <=10
Red if >10
Risk Assessment Green if >=1

KPI Results Summary

Revalidation Hazops on
(HIRA) Yellow if >0.5
Schedule
Red if <=0.5
2.50

Green if =0
Divn. Pre-Startup # Exception Actions
Tier PSM Element Sub-Element KPI Name Rule Yellow if <=10
Safety Review Overdue
Result Red if >10
2.00
Green if =0
Tier Green if <1
Tier 1 Recordable Yellow if =1
1 Average Alarm Rate Yellow if <=1.5
Process Safety Events Red if >1
Red if >1.5
3.00
Green if <=75
Green if < 3 Alarm Burst Count Yellow if <100
Tier Tier 2 Recordable Process &
Yellow if =3 Red if >=100
2 Process Safety Events Alarm
Red if >3 Green if <=50
3.00 Management Average Standing Alarms Yellow if <75
Green if <=540 Red if >=75
Tier Critical Operating Limit
Yellow if <1080 Green if >0.75
3 Excursion Control Loop Service
Red if >=1080 Yellow if >=0.6
Factor
Green if < 3 Conduct of Red if <0.6
Primary Containment
Yellow if <=5 Operations 2.50
Outside Integrity Limits
Red if >5 Green if <15
Average Suppressed
Green if < 5 Yellow if <=30
Challenges to Alarms
SIS & BMS Activations Yellow if <=15 Red if >30
Safety Barriers Red if >15 Green if <60
Safety Bypass Average Age of
Green if >40 Yellow if <=90
Process Safety Near Bypasses (days)
Yellow if >=30 Management Red if >90
Miss 2.50
Red if <30
Green if >=0.95
Green if <50 Operating Procedure
Small Losses of Yellow if >0.85
Yellow if <=60 Audit
Containment Red if <=0.85
Red if >60 3.00
2.20
2.57
Green if >=0.9 Green if <0
Tier Safe Work Permit # Non-Conformance
SWP Compliance Audit Yellow if >0.75 Yellow if <=5
4 (SWP) Red if <=0.75 Reports Overdue
Red if >5
3.00
Green if =0
Non-Conformance
Green if >=0.95 Pressure Yellow if <=7
Safety Bypass Report Actions Overdue
Yellow if >0.85 Equipment Red if >7
Compliance Audit
Red if <=0.85 Green if =0
Integrity Vessel/Tank Inspections
Green if <15 Yellow if <=10
Asset Integrity & Overdue
# Safety Bypasses Yellow if <=30 Red if >10
Red if >30
Reliability (AI&R) Green if <0
Management of PRDs Overdue for
Yellow if <=10
Change (MOC) Green if =0 Servicing
Red if >10
Temp MOCs Expired Yellow if <=5 2.75
Red if >5
Safety Critical
Green if =0 SCE ITPMs Completed Green if >0.9
Permanent MOCs Equipment
Yellow if <=10 on Schedule Red if <0.7
Overdue Integrity
Red if >10
3.00
2.75
2.75
Green if =0
Hazard PHA (incl. Re-HAZOP) Emergency Green if >0.9
Yellow if <=10 Completion of Scheduled
Action Items Overdue Response Yellow if >=0.75
Identification and Red if >10 ERT Drills
Planning (ERP) Red if <0.75
Risk Assessment Green if >=1
Revalidation Hazops on 3.00
11
(HIRA) Yellow if >0.5
Schedule 2.61
Red if <=0.5
2.50 Note – data for illustration purposes only
PSM Dashboard
Overall Health Indicator

The Overall PSM Health Indicator is an average of all (28) KPIs in the
dashboard: leading and lagging 12
Note – data for illustration purposes only
Current Status & Next Steps

• Benefits have been realized through improved

compliance on safety critical maintenance, action
management
• Less tangible benefits have been realized through
leadership accountability, depth of PSM knowledge,
fostering a sense of Chronic Unease
• Next steps include:
– In collaboration with the Business Units, revisit the focus
areas of the dashboard in 2018 (different PSM elements,
different KPIs - e.g. competency, SCE performance)
– Aligning PSM Dashboard with Canadian HSE Cases
13
Questions

14