process centric integrity management

NEW PRACTICES & TECHNOLOGIES SUPPORTING PIPELINE ASSET LIFE-CYCLE MANAGEMENT

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Overview of Integrity Program

Monterrey November 2009

Confidential


Program Scope Pemex Refining is in the process of implementing a best practices multi-year integrity management program for it’s more than 14,000 km of hazardous liquids and crude oil pipelines

Program Overview

Objective The purpose is to improve and maintain the safe, reliable operation of the pipeline system through risk based management and execution of integrity activities

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Program Overview

Program Overview

Integrity Management System The company decided to support the program with a web-based, GIS enabled technology called Integrity Management System (iMS)

Confidential

Industry Leading Best Practices BSI PAS-55 (Asset Management) LEAN (Process Management) Six Sigma (Quality Assurance) API 1160\ASME B31.8S (IM) EPRA (WKM Risk Management)

Confidential

Program Overview

Benefits of Practices – Supports: Life-Cycle Management Risk Based Decision-Making Collaboration, Communication,

Sustainability, Improvement Scalability, Configurability Performance Management

(beyond prescriptive silo based integrity management)

Confidential

Program Overview

Asset Management Framework

Monterrey November 2009

Confidential

http://www.petroitamericas.com/index.html



Asset Management Systematic & coordinated activities and practices through which an organization optimally manages its physical assets and their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan

Figure provided from PAS-55 and the Woodhouse Group

BSI PAS-55

Confidential


In a traditional organization it is difficult to optimize asset values across the business


A goal of AM is to then provide a truly integrated, optimized, risk-managed, whole-life management of the mix of physical, human, intellectual, reputational, financial and other assets that uniquely comprises the business

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Asset Management Organizational Strategic Plan Asset Management Policy Asset Management Strategy Asset Management Objectives Asset Management Plans:

Integrity Administration Plan (PAI)


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Asset Management "What is the optimal inspection or

maintenance interval?“ "What is the optimal implementation

sequence for a list of very dissimilar tasks or projects?“

"When is the optimal time to replace this equipment?“

"Is it worth holding a strategic spare, and if so, how many?“

"Which asset is best to purchase - the high cost option with better performance and longer potential life, or the cheaper but lower performance/more uncertain option?“

"What shutdowns are worthwhile, when?"


Incorporating Principals of Risk Based Management

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LEAN Process Focus

Six Sigma Activity Focus


Employing LEAN and Six Sigma practices to improve work-flow processes and data\results quality assurance

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Process Management - Definition Aligning internal and external business process

performance and results with the core competencies, strategic objectives, and business goals of the organization

Understanding and documenting business processes so that they can be consistently executed

Measuring, monitoring, and controlling process performance including key inputs and outputs

Actively designing and improving business processes to meet or exceed the expectations of customers while achieving organizational goals

Process Management

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When Combined, PAS-55, LEAN and Six Sigma Support Optimized

Cross-Functional Alignment w\Business Objectives

Process Management

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Implementing Process Management Practices

Process Management

Discovery and Documentation of Key Program Processes Recognize that documenting,

collaborating and managing key processes leads to business and program improvement

Understand that cross-functional teams have different interpretations of what is important

Select 10-20 high value or high risk processes

Break process into 10-15 tasks and small teams

Implementing Process Management Practices

Process Management

Processes Program Planning Assessments Inspections Mitigation & Repair Certification Risk Based Decision-Making Data Q\A and Integration

Example

Process Management

Basics Who What Where When How

Key Features

Systems Integration Documentation KPI Reporting Escalation Notification Re-Assignment Versioning

Risk Based Decision Making

Confidential

Risk Based Decision-Making (RBDM)

RBDM is the foundation of the selection of all assessment, inspection and rehabilitation activities,

RBDM supports the optimal selection of integrity activities within the asset life-cycle (PAS-55)

Given the importance of RBDM in support of the program objectives, Pemex decided to deploy a normalized, monetized methodology for project analysis called Enhanced Probabilistic Risk Analysis (EPRA)

Risk Based Decision Making

WE1

EC IC SCC TPD WOF MFG CON IO EQ Threat

Categories

Variable

Categories

PFIM LOF Algorithm Structure

Attributes

E1

E2

E3

M1

M2

M3

R1

R2

R3

Exposure

Mitigation

Resistance

Attribute

Score

Variable

Weight WE2 WE3

WOF Threat Score = (Exposure) * (1 - Mitigation) * (1 – Resistance)

LOF Score = 1 – [(1-EC) * (1-IC) * (1-SCC) * (1-TPD) * (1-WOF) * (1-MFG) * (1-CON) * (1-IO) * (1-EQ)]

ROF Score = LOF Score * COF Score

Exposure =

(VariableE1 * WE1) + …

(VariableEn * WEn)

Mitigation =

1 – [(1 - VariableM1) * …

(1 - VariableMn)

Resistance =

1 – [(1 - VariableR1) * …

(1 - VariableRn)

Confidential

Broaden KPI’s to AM Life-Cycle What is value of asset

given it’s operational risk profile, required maintenance investments and business value?

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Activity Based Q\A & RCA Basics Performing programmatic and

human-centric Q\A for activities while correcting issues as far upstream as possible

Quality assurance root cause analysis, narrowing degrees of separation from actual cause

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Welding Quality Assurance KPI’s provide transparency of

issues which support process of RCA

High level summary Drill-down by welder Field reports and qualification

procedure

Q\A and Root Cause Analysis

Activity Based Q\A & RCA

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Summary

Pemex Refining is in the process of starting year one of program using the practices and technologies provided in this presentation

Extensive guidance for the asset management practitioner is available through the following resources: IAM - http://www.theiam.org/ BPM - http://www.bpminstitute.org/ LEAN - http://www.lean.org Six Sigma - http://www.isixsigma.com

http://www.theiam.org/

http://www.bpminstitute.org/

http://www.lean.org/

http://www.isixsigma.com/

Questions?
