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Technical Session # 3ATopic : Improving Health, Safety and Environment Performance Analysis

Improving Health, Safety and Environment Performance Analysis

Mark WeitnerIBM Global Business ServicesHSSE Center of Competence


The Transformation Of HSE

HSE Management Is At Another Major Transformation Point

Compliance Driven Command & Control Model:

• Regulations• Standards• Corporate Policies

Stakeholder Market-Based Model:

• Reduced Operational Risk• Enhanced Corporate Brand• Increased Shareholder Value

Asset Intensive Companies Are Moving From Tactical Compliance

Reporting to Sustainable Operational Excellence


Reducing Operational Risk, Enhanced Corporate Brand and Increased Shareholder Value

The Transformation Of HSE


Occupational Health and Safety

AdministrationPSM Regulation OSHA 29 CFR

1910.119

1. Employee Participation 8. Mechanical Integrity

2. Process Safety Information (PSI) 9. Hot Work Permits

3. Process Hazards Analysis (PHA)

10. Management of Change (MOC)

4. Operating Procedures 11. Incident Investigation

5. Training 12. Emergency Planning and Response

6. Contractors 13. Compliance Audits

7. Pre-Startup Safety Review (PSSR) 14. Trade Secrets

Process Safety Management Best Represent The Complexities of HSE Management

The Foundation of All Process Safety Management

Programs

Operational Challenges In This Transformation


American Petroleum Institute (API)

1. Safety and Environmental Information

2. Hazard Analysis

3. Management of Change (MoC)

4. Operating Principles

5. Safe Work Practices

6. Training

7. Quality Assurance/Mechanical Integrity

8. Pre-Startup Review

9. Emergency Response and Control

10. Incident Investigation

11. SEMP Element Audit

12. Documentation and Recordkeeping

Upstream, Downstream & Manufacturing Standards

Operational Challenges In This Transformation

1. Employee Participation 8. Mechanical Integrity

2. Process Safety Information (PSI) 9. Hot Work Permits

3. Process Hazards Analysis (PHA)

10. Management of Change (MoC)

4. Operating Procedures 11. Incident Investigation

5. Training 12. Emergency Planning and Response

6. Contractors 13. Compliance Audits

7. Pre-Startup Safety Review (PSSR) 14. Trade Secrets

American Institute for Chemical Engineers (AIChE) Center for Chemical Process Safety

(CCPS)


When Operations, Engineering & HSE Find Success

Business Benefits When Operational Challenges Are Met

Source: Center for Chemical Process Safety (CCPS), American Institute of Chemical Engineers (AIChE)

3% Reduction in Production Costs

1% Reduction in Capital Budgets

Reduction in Maintenance Costs5%

Increase in Productivity5%

Reduction in Insurance Costs20%


The Challenges in Managing EHS Today

Many elements to consider – each is often complex itself

A large and diverse amount of information in different forms and formats

Information comes from many different sources

Different parts of the organization “own” this information

Systems generating this information often times have other primary purposes

Alignment of Systems, Processes and Organizational Elements Are

Challenging

Enterprise Challenges In This Transformation


A Smarter Approach To HSE

Optimizing Safe and Reliable Operations

The use of predictive analytics is now emerging as an important technique to identify organizational, operational and safety risk

factors and are becoming core to their performance management programs

The Silos of Information, Policy, Execution and Management

Reactive

Proactive

Predictive

The Silos of Information, Policy, Execution and Management

Reactive

Proactive

Predictive

Respond to Individual Risk Or Threat

Search for “Needle in a Haystack”

Separate SiloedManagement Systems

Safety as a Required Cost factor

Reactive: Focus on Damage Control

Managed: Focus on Prevention

True integratedSolution Architectures

Decision Support

Convergence of HSEand IT

Business Intelligence as Driver in Corporate Value Metrics

Predictive: Focus on Proactive Recognition

Pattern Analytics

Smarter Analytics

On Going Integrated Monitoring

Pre-Emptive Management


The Story Of Predictive Analytics

Analyze current transactional and historical facts to make predictions about future events

The ability to model good (or safe) operations learned from historical experience and then apply those patterns to avoid future events

A natural progression of increasingly sophisticated tools available in safety management and has become more common in the chemicals and petroleum industry in such areas as predictive maintenance

What Its All About…

Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright © Massachusetts Institute of Technology 2010.


Gaining Insights From Multiple Data Sources

Data Drives Predictive HSE Analytics

The Goal: Draw Reliable Conclusions and Acting Accordingly


Predictive Analytics Requires A Well Laid Foundation

Components of a Well Managed HSE Analytics Process


The Challenges In Analytics Adoption

Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright © Massachusetts Institute of Technology 2010.

The Issues Are Organizational, Not Data or Financial (Cost)


The Road To HSE Analytics

1.Begin With an Organizational Maturity Assessment

2.Perform an Information Strategy Readiness Assessment

3.Pick Your Spot

4.Prove the Value

5.Roll it Out Over Time

Five Key Enablers for Exploiting the Shift from Reactive to Managed to Predictive Behavior

Standardization of Information, Processes and Procedures


What The Analysts Are Saying

1. Companies will realign security investments to protect their extended B2B networks

2. CIOs will increase the visibility and responsibility for technical data management

3. CIOs will establish analytics competency centers focused on skills and business alignment

4. Unconventional resources will require companies to revisit wireless and mobility strategies

5. The shift from Health, Safety and Environmental compliance to prevention will require more sophisticated analytics

6. Talent shortages will require CIOs to rethink sourcing strategies and take on social business

7. Capital project management teams will need better analytics and standardized frameworks

8. Production optimization will drive expanded adoption of integrated operations

9. Upgrades to Electronic Trading & Risk Management applications will be driven by changing compliance and logistics requirements

10.Cloud services will not reach critical mass with oil & gas companies until 2015

IDC Top 10 Predictions for 2013


HSE Success Requires More Than Analytics

Social Business Programs Drive HSE Strategy Success And Cultural Adoption

SPE-167429-MS

Transforming Health, Safety and Environment Strategy and Culture Using Social Business M. Weitner, and D. Hatler, IBM Corporation

C opyright 2013, S ociety o f P etro leum E ngineers This paper w as prepared for presenta tion a t the S P E M iddle E ast In telligen t E nergy C onferen ce and E xhibiiton he ld in D uba i, U A E , 28–30 O ctober 2013. This paper w as selec ted for presenta tion by an S P E program com m ittee follow ing review of in form ation contained in an abstrac t subm itted b y the author(s). C ontents o f th e paper have not been review ed by the S ocie ty o f P etroleum E ngineers and are subject to correction by the au thor(s). The m aterial does not necessarily re flec t any posit ion o f the S ocie ty o f P etroleum E ngineers , its o fficers, or m em bers. E lec tronic reproduc tion, dis tribu tion, or storage o f any part o f this paper w ithout the w ritten consent of the S ociety of P etro leum E ngineers is proh ibited. P erm ission to reproduce in prin t is res tricted to an abstrac t of not m ore than 300 w ords ; illus tra tions m ay no t be copied . The abs trac t m ust contain conspicuous acknowledgm ent o f S P E copyright.

Wednesday, 30 October 2013, 11:15–12:45SPE Intelligent Energy International

Dubai, UAE

A smarter approach to the people-centric processes of an organization

Encompasses organization AND business processes Top down and bottom up engagement within an

organization as well as relevant external influences

• Leadership

• Communication

• Engagement

• Collaboration


DISCUSSION

Mark WeitnerIBM Global Business ServicesCenter of [email protected] - +1.203.409.3688

Improving Health, Safety and Environment Performance Analysis