Scottish Power AM Case study

8/20/2019 Scottish Power AM Case study

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Scottish Power Goal :

to make Process Safety risks

as visible as Health and SafetyRisks?

February 2012 Process Safety KPIs

Martin Sedgwick – Head of Engineering and R&D Iberdrola Group

Angela Wands – Process Safety Manager Amor Group

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Agenda


Introduction

Safety and Business Benefits

Making Process Safety Risks Visible

The goal: to become a “High Reliability Organisation”

Implementing HSG 254

Process Safety KPI Dashboard

Summary


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Iberdrola Group and ScottishPower

ScottishPower is part of Iberdrola, a world leader in energy

…with a clear focus on clean, sustainable energy provision

2nd wind company3rd player in gas

storage

1st private

producer in Mexico1st distributor in

Brazil

One of the sixlargest generator

/ retailers1st windcompany

Main energycompany

Operating in over 40 countries to serve30 million customers

Combined April 2007 to form one ofthe largest global energy companies

44GW of installed capacity and a worldleading 11 GW of renewables

SP is one of the „big six‟ energy

suppliers in the UK

SP has 5.2 million customers and 6GWof generation capacity across the UK


Scottish Power

Manweb

(Distribution)

ScottishPower

Transmission &

Distribution

Longannet

Cockenzie

Cruachan

Lanark

Galloway

Ravenhead

& Pilkington

Blackburn

Pearsons

NHHT

Basingstoke

Rye House

Brighton

Damhead

Creek

CHP

Hydro

CCGT

Pumped

Coal

Over 8,000 employees

Supply 5.2 million customers

6GW of coal, gas & hydrogeneration across the UK

SP Renewables largest onshorewind operator in UK (1200 MW)

Distribution area of over 35,000square kilometres


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Scottish Power Goal : to make Process Safety

risks as visible as Health and Safety Risks?



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HSE Case

StudyJudith Hackitt CBE


We need more Leaders to adopt the

ScottishPower approach and to consider

innovative ways of making process

safety an integral part of everyone‟s role

Judith Hackitt CBE, Chair of HSE UK

June 2011


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Working in together

• Relationship spans 15 years +

• Aim to help other companies fast track a similar approach

• Best of breed Industry and implementation knowledge

• Providing access to recognised Industry leading expertise

• Providing access to proven tools and delivery methodology• Jointly developed range of tool kits and training material

• Integrating technologies to deliver a sustainable solution



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The Benefits

Incidents and severity now starting to fall...



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• 29% reduction in

Operations and

Maintenance costs

• 22% increase in plant

availability

• 50% reduction in plant

forced outage rates• 10% Reduction in

Insurance costs and

deductable period

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

2008 2009 2010 2011

Plant Availability 64.5% 77.0% 83.9% 86.9%

EFOR1 10.1% 7.5% 6.4% 5.5%

0

10,000

20,00030,000

40,000

50,000

60,000

70,000

80,000

2008 2009 2010 2011

Generation Costs (£m)

The Benefits



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Generation Strategy


Driving light into the future


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

The need for asset safety and efficiency are keydrivers within the power industry.

Process Safety retains focus on criticaloperations, maintenance and engineeringprocesses and supports optimum performance

of assets - against the backdrop of ageing plant,stringent legislation and cost pressures.

Through an integrated asset managementstrategy that puts Process Safety at the top of

the agenda, our objective is to become a“High Reliability Organisation”


A “High Reliability Organisation” is one thatproduces its product relatively error freeover a long and sustained period of time.

The two main attributes of a High ReliabilityOrganisation are:

Have a chronic sense ofunease – they lack anysense of complacency.

Make strong responsesto weak signals - they settheir threshold for

intervening very low.


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“High Reliability Organisation”

Governance &Audit

PAS 55 is used as aframework for Asset

Management

Process Safety is fullyembedded in culture and

process

Integrated auditprogramme (ISRS 8) in

place that independentlychecks processes and

procedures against bestpractice.

Audit observationsproactively addressed

through continualimprovements

Implementation of a solidgovernance framework

using visible metrics toregularly review and

improve performance fromBoard to Plant Level

Fully embedded integratedsystem for managing

Audits, Actions, Incidents,Near Misses and Risks

IntegratedOperations and

Maintenance

Shift from reactive toproactive , reliability ledmaintenance strategy

Work captured, prioritised,planned, scheduled and

executed using a proactiveapproach

Common Maintenancestrategy across all plattypes by classification

Reliability principles areused to establish bestpractice maintenance

approaches

Lifecycle cost reporting andasset performance used to

drive maintenance strategy

Common OperationalStandards established

Plant operated with in itsdesign parameters against

agreed procedures

Plant put back in tooperation safely following

outages

Leadership, StaffCompetence andHuman Factors

Staff and contractors havethe required knowledge ,skills and competence to

operate and maintain theplant effectively and safely

Process Safety culture isembedded in the

organisation, from seniormanagers to all staff

Robust Safety Ruleprocedures and processes

Behavioural safety culture,MIND safety and 5S

housekeeping principlesestablished

Communication strategydesigned to deliver regularupdates on performance,

risks, issues andimprovement opportunities

All incidents and nearmisses are reviewed andlessons learned sharedwith all staff at all sites

EmergencyArrangements and

BusinessContinuity

Staff and contractors havethe required knowledge

and skills to deal with allemergency situations

Emergency Systems aretested and practiced on a

regular basis

Business Continuity Plansare established and

regularly tested

Off site and Crisis plansare established and

regularly tested

EngineeringGovernance

Technical RiskManagement through

robust change processes,underpinned by

Engineering Standards and

a Governance framework

Management of Changeprocesses are established

and rigorously followed

Criticality is assigned to allassets using a commonrisk based framework.

Life plans developed usingreliability engineering

methods appropriate toasset criticality and

condition

ALARP principles

embedded and used toasses technical risks

Capital Investments aremade based on integrated

assessment of assetcondition and commercial

impact

A robust TechnicalRecommendation (RT)

process is established toshare learning

Alarm, Controlsand InstrumentManagement

Alarms are prioritises andactively managed to

resolution

No long termstanding/Shevled alarms

Alarm performance is inline with best practice

Standard approach toinstrument calibration

Control loops are optimisedand in control

Critical Instrumentation andsafety systems are fullycatalogued with robustmanagement and proof

testing is in place

Benchmarking

Benchmarking is carriedout with and without sectorto establish and maintainindustry leading position

Continual review of “BestPractice”

Implementation ofimprovement “RoadMaps”

to deliver a sustainedprocess

Integration with Iberdrola toestablish common

processes and practices

Delivering Common Processes and Practices across the Iberdrola Group


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Our 7 Step Approach (High Reliability Organisation)


Create Vision & StrategyEstablish

Leadership

Design AssetManagement &Process SafetyManagement

System

ImplementFoundationDashboard

Integration&Automation Of

Dashboard

Review &Governance

Benchmarking &Continuous

Improvement


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Road MapAsset Management & Process Safety Integrated RoadMap

Create Vision & StrategyEstablish

Leadership


System



Dashboard

Review &Governance


Improvement

Establishintegratedapproach.

Developbusiness case.

Ensurebusiness buy in

at CEO andSenior

Leadershiplevel.

Common levelof awareness

andunderstandingestablished.

Follow HSG254six step

approach.

Structuredapproachdelivers

comprehensiveand rigorousanalysis of

hazards, riskcontrol

systems.

“Quick win”implementationof dashboard

based onmanual KPIs.

Provides initialassessment ofProcess Safetyperformanceand kicks off

cultural change.

Move to dailytracking of KPIs

based onautomated

feeds.

Exploit drilldown andtrending to

driveperformance to

next level.

Establishframework for

delivery ofsustained

performance

andimprovements.

Embed coredecision

making tool.

Maintain senseof vulnerability

throughlearning from

others andchallengingbusiness as

usual.

Pathway To A “High Reliability Organisation”



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2006 to 2008

• Maximo established atall sites

• Pilot Ivara EXP• Ivara Contract Award

2007

• Project ManagementSystem Established

July2008

•OperationalTransformation

ProgrammeEstablished

• Integrated ApproachDeveloped

• Ivara EXP established

• Application of MTA

• Introduction of HandHeld Technology

• MSPe and QMS forProject ManagementISO 9001

June2009

• Process SafetyManagement SystemDeveloped

• KPI DashboardIntroduced

• ORG GovernanceEstablished

• P2Pr ProcessEstablished

November 2009

• PAS-55 Accreditation Achieved

• Reliability EngineeringEstablished At Key Sites

• Leadership Training

• ISRS8 Pilot

• Cintellate - IncidentReporting & Investigation

December 2010

• Alarm Management SystemOperational

• New Operations Standards

Issued• Electronic Shift Logging – Live

• Staff CompetencyImplemented

• New Maintenance PlanningTools

• EXP Established at Hydroand Has Storage sites

• ICheme Award for ProcessSafety

• Development of newOperational IntegrityProgramme including MSR

• HSE Case Study Developed

Programme Time LineBuilding a strong capability in Asset and Process Safety Management...

Operational

TransformationProgramme

Our Destination “High Reliability Organisation”



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Design Asset Management and

Process Safety Management System

Set Vision & StrategyEstablish

Leadership

Design AssetManagement andProcess SafetyManagement

System



Dashboard

Review &Governance


Improvement




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Development of KPI DashboardBased on Key Concepts in HSG 254...



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Major

Process

Safety

Incident

SignificantProcess

Safety

Incident

Minor

Process

Safety

Incident

Classification Of Incidents

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)

• Major environmental impact Significant Process Safety Incident:

• Equipment damage > £20k but


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Key Performance Indicators

Fully defined KPI,including:

Objective

Definition

Data Source

Data Aggregation /

Calculation

Targets

Data RecordingGuidelines

Formal sign off by

senior managers


S f

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Process Safety Dashboard

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

F th HSE G id


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Further HSE GuidanceRisk Ranking of Indicators…


KPI R ki


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KPI RankingOperational Indictors are the key to avoiding incidents...


Operational Control Indicators

Generic Indicators

Programme Indicators

0 1 2 3 4 5 6

M j H d A id t


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Major Hazard AccidentsIndicators Need To Be Visible to prevent accidents....


P S f t


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Process Safety

Swiss Cheese Model

Hazards

Risk Control Barriers


Making the warning signs v is ib le to ALL

Instant ly !

KPI B d O 4 I


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KPIs Based On 4 IconsA simple concept that all staff can buy in to...

Best Practice

Performance

Performing

At Or Above

RequirementPerforming

Below

Requirement

Performing

Significantly

Below

Requirement

No

Process Safety

Incidents

Minor

Process Safety

IncidentSignificant

Process Safety

Incident

Major Process

Safety Incident

Leading Indicators

Lagging Indicators


Pl t Ch k


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Plant ChecksKey Operational Indicators...


Pl t Ch k


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Plant ChecksVisibility Of All Routine Operations Plant Checks...


Shift Hando er


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Shift HandoverKey Communication Tool...


Shift Handover


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Shift HandoverLinked to Operational & Competence Standards...



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Integration & Automation Of

Dashboard


Leadership


System



Dashboard

Review &Governance


Improvement



Data Source Systems


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Data Source Systems

ProcessSafety

AlarmManagement

WorksManagement

RiskManagement

ShiftLogging

ReliabilityEngineering

StaffCompetence


Data Source Systems


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Data Source Systems

ProcessSafety

AlarmManagement

WorksManagement

RiskManagement

ShiftLogging


StaffCompetence

Alarm Management

• Proving real-time trendanalysis of all alarmsthroughout theorganisation

• Improvement plansdeveloped for all sites

Works Management

• Single solution and setof processes defined

and implementedacross the asset estate

• Scheduling capabilitiesused outside core worksmanagement


Data Source Systems


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Data Source Systems

ProcessSafety

AlarmManagement

WorksManagement

RiskManagement

ShiftLogging


StaffCompetence

Risk Management

• Single, fully integratedrisk management,incident management,action tracking, audit

tool

Shift Logging

• All Control Rooms andUnit Desks using

standard electroniclogging system

• Automatic feedsdeveloped from plantinformation (OSI PI)


Data Source Systems


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Data Source Systems

ProcessSafety

AlarmManagement

WorksManagement

RiskManagement

ShiftLogging


StaffCompetence


• All sites using hand heldtechnology for OperatorRoutes

• Automatic monitoringthrough single system

Staff Competence

• Operations standardsintroduced

• Start up and shutdown /shift handovercompetencies in placeand monitored


Data Source Systems


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Data Source Systems

ProcessSafety

AlarmManagement

WorksManagement

RiskManagement

ShiftLogging


StaffCompetence


Data Source Systems


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ProcessSafety

AlarmManagement

WorksManagement

RiskManagement

ShiftLogging


StaffCompetence

Data Source Systems


KPI Dashboard Architecture


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A d H o c A n a

l y s i s ( B u s i n e s s O b

j e c t s )

Source

SystemsData Processing

Reporting and

Analysis

KPI Dashboard ArchitectureAn enterprise scale solution...

Scheduling


(Ivara EXP)

Incidents & Staff

Competency(Cintellate)

Asset & Work

Management(Maximo)

Technical Risks(Cintellate)

Alarm Management(PAS)

Shift Logging &

Handover(Opralog)

S t a g

i n g A r e a

E T L

E T L

E

T L Dashboard

I n t e g r a t e d

T r a n s a c t i o n a l

D a

t a M a r t

K P I D a

t a

M a r t



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Review & Governance


Leadership


System



Dashboard

Review &Governance


Improvement



Group Governance Process


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Review

Level

EnergyWholesale

Generation

Generation

Groups

PowerStations

Governance Body

Energy Wholesale Board

Operational Risk Group (ORG)

Coal PRM

LN, CK, DD

Gas PRM

RH , DC, SH,BB, HT

Hydro PRM

CN, GW, LK

Review

Guidance

ConsolidatedIndicators

Major or KeyIncidents

Business WideIndicators

SignificantIncidents

Trends

Group Indicators

Significant &

ModerateIncidentsClose-out rates

Local Indicators

All Incidents

Frequency

Monthly

Monthly

Monthly

Daily

Group Governance ProcessCascade up approach...

39February 2012 Process Safety KPIs

Process Safety Dashboard

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Process Safety DashboardMonthly Reports – support Operational Risk Governance meetings…




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Leading Indicators

Performance

(KPI Dashboard)

Incident Reviews(Cintellate)

Technical Risks

Benchmarking

Legislation Update

Overview of standard agenda items...


Learning Points


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Learning PointsKey learning points from ScottishPower‟s 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


In Summary


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In SummaryBusiness Benefits...

•Supports business drivers ofimproving plant availability,

reliability and cost reduction

•Reduces the Frequency andSeverity of system failures

and their impacts.

•Save lives, time, careers, &

money!



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Question Time


Control Loops


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Control LoopsControl Loop Management


Control Loop Management


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Control Loop ManagementVisibility of Control System Performance...


Safety Critical Instrumentation


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Safety Critical InstrumentationCalibration and Proof Testing of Critical Protection Systems...


Safety Critical Systems


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Safety Critical SystemsStandard Approach to Monitoring & Proof Testing...



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Process Safety Approach



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Operational Transformation Programme

Centrally coordinated, business driven approach...

Documents

Scottish Power AM Case study