lloyd’s register kazakhstan llp delivering lower risk, improved safety and enhanced business...
TRANSCRIPT
Lloyd’s Register Kazakhstan LLP
Delivering Lower Risk, Improved Safety and Enhanced Business Performance
Chris RenwickGeneral DirectorLloyd’s Register Kazakhstan LLPAtyrau 5th April 2011
Lloyd’s Register Kazakhstan LLP
The Lloyd’s Register Group today
• We are a non-profit distributing organisation; impartial with complete financial, political and technical independence
• Origins dating back to 1760• Our offer is distinct, transparent
and results orientated• We have 7,000 dedicated and
highly competent employees worldwide, drawn from over 90 nationalities
• 240 offices @ > 100 countries
Lloyd’s Register Kazakhstan LLP
The Lloyd’s Register Group today
A leading international authority
• Our services focus on compliance, safety, integrity and risk management –
• Our markets are characterised by high risk capital intensive assets where independent assurance is valued
• we advise on ‘best practice’ for the design, management and operation of assets and systems over the life cycle
• We support clients in meeting their legislative and corporate responsibilities
Lloyd’s Register Kazakhstan LLP
Focus of today’s Presentation
• The world today for our customers
• Risk and Asset Integrity• How Asset Performance
Management delivers on safety and business performance
• Final thought
Lloyd’s Register Kazakhstan LLP
The world today; What is the situation for our customers?
Turbulent times…….!
Lloyd’s Register Kazakhstan LLP
Decision drivers have changed
2008
CAPACITY
Maximise capacity & output
2009 – 2010 - 2011
FLEXIBILITY (6 months horizon)
Improve cash-flow
2012 ?
Lloyd’s Register Kazakhstan LLP
Markets respond in various ways
• Cost reduction programmes
• Focus on immediate cost over long term value
• Reschedule Shut-Downs
• Putting Projects (Green Field and Brown Field) on hold:
• Prioritising Projects (Brown Field) based on cash generation capability
• Decommissioning of production units• Concentrating production at largest / newest
facilities
Lloyd’s Register Kazakhstan LLP
The question we must ask is
Given the commercial pressures how can we
Lower Risk
Improve Safety
Enhance Business Performance
Lloyd’s Register Kazakhstan LLP
Where is the risk?
Ref.: American Petroleum Institute
• Equipment failures costs US Refining Industry > US$4 billion/Year!
• 2/3 of those costs are associated with failures of static equipment!
• The average refinery has a risk exposure of US$25 million/Year due to failures of static equipment.
• 2/3 of those costs are associated with piping failures.
Lloyd’s Register Kazakhstan LLP
Asset Integrity
• Integrity by Design• Designed to meet corporate objectives• Operability and Human Factors are considered• Maintenance and Inspection needs are considered
• Maintaining Integrity • By Inspection• By training• By Control and Accountability
Lloyd’s Register Kazakhstan LLP
Asset Performance Management
Starts with sound integrity management:
Asset integrity
System / Process integrity
Operational (human) Integrity
= Organisational Integrity
Lloyd’s Register Kazakhstan LLP
Asset Performance over time
Time
Perf
orm
ance
Sustained Asset
Performance
Complacency
Changes in process
Turnover of Skilled Staff
Aging Equipment
Asset PerformanceImprovement“system Fixes”
APMDeep Learning
“cultural changes”
Asset Performance Improvement
“Hardware Fixes”
Natural tendency for performance to deteriorate
Lloyd’s Register Kazakhstan LLP
Sustainable improvement in performance• Organisational integrity delivers…
• Realistic job roles and manpower levels,
• Usable processes, procedures and equipment interfaces, and
• Reliable human performance.
• It accelerates the return on investment in RBMI.
• It sustains enhanced asset performance. • It prevents organisational drift into
degraded performance and failure.
Lloyd’s Register Kazakhstan LLP
Risks in organisational drift
• Aging Infrastructure• Loss of Experience• Lack of Competency• Shifts in Expectations of Employees (not my
job)• Lack of Management Control / Accountability
(not my job either)
Lloyd’s Register Kazakhstan LLP
Organisational drift – consequencesSafety management processes degrade
Lloyd’s Register Kazakhstan LLP
Organisational drift – consequencesCommitment to technical integrity is lost
Lloyd’s Register Kazakhstan LLP
Organisational drift – consequencesTechnical standards and procedures are missing or inappropriate
Lloyd’s Register Kazakhstan LLP
Organisational drift – consequencesCompetence and understanding are insufficient
Lloyd’s Register Kazakhstan LLP
Organisational drift – consequencesInability to detect and / or recognise symptoms of potential failure
Lloyd’s Register Kazakhstan LLP
Summary
• We live in turbulent times and we must manage our risks and invest appropriately.
• Maintenance, inspection, operational and engineering tasks are all performed by people
• Integrating mechanical integrity with human & organisational risk management is key to preventing organisational drift.
• Integrated Asset Performance Management delivers Safety, Value and enhanced Business Performance
Lloyd’s Register Kazakhstan LLP
A final thought – Safety and Business Performance, what Price, what Cost?
It's unwise to pay too much, but it's worse to pay too little. When you pay too much, you lose a little money — that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot — it can't be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.
The Common Law of Business Balance, this quotation has been widely attributed to JohnRuskin
Services are provided by members of the Lloyd's Register Group. For further information visit www.lr.org/entities
For more information, please contact:
Chris RenwickGeneral Director
Lloyd’s Register Kazakhstan LLP1/1 Zhandozov StreetBusiness Centre “Success”, Office 1 Almaty 050008Kazakhstan
T +7 727 2666 081/2/3E [email protected] www.lr.org