experience with developing process safety kpis within scottishpower

Experience with developing Process Safety KPIs within ScottishPowerProcess safety management for power and steam generation Energy Institute, London

8th July 2010

Martin Sedgwick – Head of Asset ManagementSteven Stewart – Process Safety Design Authority

AgendaOverview of ScottishPower’s journey implementing PSPIs...

Brief introduction to ScottishPower

Approach To Developing Process Safety Leading and Lagging Indicators

Current Status Of Indicators

Enduring Process Safety Solution

Management / Board Reporting

Process Safety Key Learning Points

8th July 2010 2© ScottishPower 2010 – Energy Institute Seminar

Company Overview


Iberdrola GroupScottishPower part of Iberdrola Group, a worldwide leader in energy…


Presence in 40 countries worldwide

ScottishPower OverviewScottishPower is a major integrated power company...


ENERGY RETAIL

5.3m customers

ENERGYNETWORKS3.4m customers

#3 UK distribution

network operator

ENERGYWHOLESALE

~6GW flexible generation

Energy Management

Gas Storage

COMPETITIVEREGULATED

UK

© ScottishPower 2010 – Energy Institute Seminar

Approach To Developing Process Safety Leading and Lagging Indicators

8th July 2010

Longannet Power StationCarbon Capture Pilot Plant

6

Overview Of Approach

Based on HSG254 – recognised as best practice

Tested through benchmarking - HSE and Oil & Gas sector

Common KPIs for all sites, but different targets applied

Incremental approach – trials using prototype dashboard

Buy in and sign off from the top

KPI Lifecycle developed:

8th July 2010 © ScottishPower 2010 – Energy Institute Seminar 7

Application Of HSG254...


Step 1 - Hazards…

People

Process

Plant

90 GENSIPHazards

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Step 2 – Risk Control Systems…

People

Process

Plant

90 GENSIP Hazards

42 Risk Control Systems

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Risk Control Areas


Risk Control Systems Grouped Into 8 “Risk Control Areas”...

Operation & Compliance Audit

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Application Of HSG254...Step 2 – Risk Control Systems…


People

Process

Plant

90 GENSIP Hazards




Step 3 – Define Leading Indicators

People

Process

Plant

90 GENSIP Hazards


8th July 2010

100 Leading Indicators

12


KPI Definition Documents

Provides definition of KPI:

ObjectiveDefinitionData SourceData Aggregation / CalculationTargets

Data Recording Guidelines

Formal sign off by senior managers

Crib sheets used to specify each KPI in detail…

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Step 3 – Define Leading Indicators

People

Process

Plant

90 GENSIP Hazards


8th July 2010


14



Step 4 – Classify Lagging Indicators…

People

Process

Plant

3 Classifications Of Lagging Indicators

90 GENSIP Hazards


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15


Application Of Latest Thinking

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 <£100k• Significant release of energy or

hazardous matter• Fire and explosions

Minor Process Safety Incident:• Demand on safety system• Process upset – control loops out of

control, equipment in manual• Breaches of plant limiting conditions

Approach to classification of lagging indicators...

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Application Of HSG254...Step 4 – Classify Lagging Indicators…


People

Process

Plant


90 GENSIP Hazards





Incident Management key to understanding lagging indicators...

People

Process

Plant


90 GENSIP Hazards

New Incident

ReportingProcess


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18

Incident InvestigationApplication of Swiss Cheese model to drive out lagging indicators...


Emergen

cy P

repare

dnes

s

Alarm / I

nstru

mentat

ion M

anag

emen

t

Critica

l Sys

tems M

anag

emen

tStaf

f Com

peten

ce

Mainten

ance

Man

agem

ent

Operat

ions M

anag

emen

t

Tech

nical

Risk M

anag

emen

t

Operat

ional

and C

ompli

ance

Aud

its

Hig

h te

mpe

ratu

re s

team

pi

pes

and

oil s

yste

ms

in

clos

e pr

oxim

ityTurbine Pedestal Fire

Strainer drain line restraints failed, pipe

movement

Fire hydrants defects unknown

Resetting governor creates oil hammer Deluge system

manually operated

Deluge valves located in Turbine

Hall, delaying access

Strainer drain line weld defective from

installation

Vacuum Breakers fail, extending run down

time Various oil leaks

Delays in applying Deluge system causes damage to system reducing efficacy

No Turbine/ Major Incident Fire Procedure

No Plant Modification history giving detail of

design rationalDelay as Fire

Brigade procedures

require BA bottle replacement

Strainer east drain line left open pressurising

drain line

Decision to not use the Deluge system for fear of

plant damage and exacerbating fire

Missing persons did not follow evacuation procedure

Local Procedures not well known for first contact with Fire Services



Outcomes documented in PSMS…

People

Process

Plant


90 GENSIP Hazards

New Incident

ReportingProcess



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Current Status Of Indicators

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Process Safety DashboardMatrix – shows worst case KPI across all RCAs at each site…


Process Safety DashboardKPI Details – shows status of individual KPIs…


Process Safety DashboardTrends show the positive impact that KPIs have had on performance…


Process Safety DashboardDrill Down – enables the source of issues to identified and tackled…


Process Safety DashboardSummary Charts – provide view of risk profile…


Process Safety DashboardMonthly Reports – support Operational Risk Governance meetings…


Enduring Dashboard SolutionPreview of next generation of software in development...


Further HSE Guidance


Three categories of indicators …

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Shift Logging …

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Further HSE GuidanceShift Logging …




Alarm Management …

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Further HSE GuidanceAlarm Management …




Reliability Engineering …

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Further HSE GuidanceReliability Engineering …




Maintenance Management …

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Further HSE GuidanceMaintenance Management …




Incident Management …

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Further HSE GuidanceIncident Management …




Technical Risks …

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Further HSE GuidanceTechnical Risks …


KPI Dashboard ArchitectureAn enterprise scale solution...


Ad

Hoc

Ana

lysi

s (B

usin

ess

Obj

ects

)

Scheduling

EXP(Reliability Engineering)

PSR(Technical Risks)

Maximo(CMMS)

Cintellate(Incident Management)

PAS (Alarm Management)

Opralog(Shift Logging)

Dashboard

Process Safety DashboardLeading and lagging KPIs listed separately...


Process Safety DashboardConcept of Leading and Lagging indicators embedded...


Process Safety DashboardDonut charts used to report leading and lagging statistics separately...


Status Of KPIs


Weighted KPIsApplication of risk based weightings to KPIs...


Top 10 KPI ReportProposed approach to ranking KPIs...


Operational Control Indicators

Calculate Score Between 0 and 4 For

Each KPI

Apply Offset To Each KPI Based on

Category

+0

+1

+2

Top 10 KPI Reporting


Operational Control IndicatorsGeneric Indicators

Programme Indicators

0 1 2 3 4 5 6

KPI Weight ApproachEnables individual KPI scores to be aggregated up to RCA level...


Maintenance Management

Work Prioritisation

Work Identification, Routine Plant Inspections

Work Planning, Scheduling

Work Execution

Personal Risk Assessment

KPI RCA Weighting

Backlog Size In Months 20%

Corrective Maintenance Compliance 10%

Outage Defects Backlog Size In Months 5%

Percentage of WOC With Failure Information 2%

Percentage of WOC With Hours Captured 2%

Percentage of WOC With Log Completed 2%

Percentage of WOC With Re-Work 1%

Percentage of WOC With Risk Assessment 10%

Safety Defects Backlog Size 3%

Percentage of PM to CM 30%

Preventative Maintenance Compliance 15%

Apply Static Weightings To All KPIs Within Each Risk Control Area

Calculate Score Between 0 and 4 For

Each KPI

RCA Adjusted For Weighting



Management / Board Reporting

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Group Governance ProcessCascade up approach...

53

All Sites

© ScottishPower 2010 – Energy Institute Seminar8th July 2010 53

Operational Risk Group (ORG)Governance of Process Safety established across business...


Monthly meeting

Dedicated to reviewing technical risks

AgendaReview Process Safety IncidentsProcess Safety KPIs Performance ReviewTechnical RisksBenchmarkingRegulatory Changes

Key Learning PointsFrom ScottishPower’s journey to date...

8th July 2010 © ScottishPower 2010 – Energy Institute Seminar 56


End Of Presentation

8th July 2010 57