Brian Hudson, Principal Lead Consultant, ABB Consulting Managing Integrity and Reliability on Ageing Assets ERTC Annual Conference November 29th – 1st December 2011 Barcelona Spain © ABB Group November 22, 2011 | Slide 1 ABB Consulting ABB Group Headquarters: Zurich, Switzerland More than 120,000 employees in about 100 countries Orders in 2009: USD 60 billion ABB Consulting “An international technical consultancy providing engineering and project services to the process industries” © ABB Group November 22, 2011 | Slide 2 Ageing - HSE definitions “Ageing is not about how old the equipment is. It’s about what is known about its condition, and how that’s changing over time” HSE Research Report RR509 - ‘The plant ageing guide’ “Ageing is…where a component suffers deterioration and damage (usually, but not necessarily, associated with time in service) with an increasing likelihood of failure…. HSE Research Report RR823 – ‘Plant Ageing Study’ © ABB Group November 22, 2011 | Slide 3 UK Health and Safety Executive Why do you need an Asset Life Strategy? Replace Maintain & Refurbish COMAH Due Diligence & Investment Regulatory Compliance Seveso II Directive Offshore Safety case Asset Life Strategy and Planning No Surprises © ABB Group November 22, 2011 | Slide 4 Financial Planning & Budgets Reputation Stakeholder Governance Licence to Operate Ageing Assets require an Integrated Approach World Class Leadership of Safety & Integrity Management of Change Safe Systems of Work Pre Start-up Safety © ABB Group November 22, 2011 | Slide 5 Process Hazard Analysis & Review Emergency Response & Preparedness Incident Investigation Process Safety Indicators & Information Effective Systems Plant & Equipment Integrity Operating Procedures & Practices Employee Training & Competence Assurance Management of Contractors Construction Inspection Audit & Review of Integrity & Compliance Process Safety/ Integrity Leadership & Culture ABB Ageing Plant Safety Management & Risk Control Summary Procedures / Systems Equipment Ageing Assessment Asset Integrity Management Policy Asset Register and actions at correct intervals Design Standards / Code of Practice updates Maintenance & Inspection Systems interfacing with Operations Operational Procedures & Maintenance Management Interfaces Operational Inspections Management of Change (MOC) Asset Integrity Management Plan to identify critical plant Risk assessment Hazard Identification versus Ageing Technical Safety Review – Critical equip Justification for continued use, obsolescence Replacement Policy for CRITICAL plant Inspection – ageing mechanisms Focussed Inspection, RBI, RCM, FMEA, etc Corrective action plan and tracking Organisational & Competence Organisational Structure & Responsibility Communication – internal/external Regular reviews Continuity Plans Impact on organisation and Human Factors Contract 3rd party standard setting Competency In-house, contractor Organisational responsibility for MOC. COMAH - Ageing Plant Operational Delivery Guide © ABB Group November 22, 2011 | Slide 6 Management Reporting & Auditing KPI’s Leading & Lagging Indicators Learning form Incidents & Near Misses Incident Investigation & action tracking Asset Performance Monitoring Defect Reporting System Audit programme Dependable Assets The Plant Ageing Guide - UK Health and Safety Executive © ABB Group November 22, 2011 | Slide 7 ‘Ageing is not about how old the equipment is. It’s about what is known about its condition, and how that’s changing over time’ Is the installation be ‘fit for purpose’ now against it current duties? Will it continue to be ‘fit for purpose’ against future duty changes and up to ‘end of field’ What extends asset life? Examples of Factors that extend asset life Managing Deterioration of Equipment & Systems No. of Failures/ Accumulated Damage Maintenance to quality standards & practices Quality of spare parts & repairs Effective testing & inspection of equipment Correct control of operating parameters Time Initial Operation © ABB Group November 22, 2011 | Slide 8 Mature Stage Ageing Stage End of Life Stage Proactive asset Life Strategies What reduces asset life? Examples of factors that reduce asset life Failure to manage deterioration of equipment and systems No. of Failures/ Accumulated Damage Poor design quality and standards of construction Operating outside design limits Mature Stage Badly managed replacement or repair Failure to recognise new deterioration mechanisms Time Poor control of modifications Initial Operation Obsolescence and Redundancy Ageing Stage End of Life Stage Solving these problems is reactive! © ABB Group November 22, 2011 | Slide 9 CULTURE OF CONTINUOUS IMPROVEMENT SOLVING THE DIFFICULT PROBLEMS ELIMINATION OF FAILURE © ABB Group November 22, 2011 | Slide 10 CUSTOMER VALUE AND GAINS IN OPERATIONAL EXCELLENCE Best Practice Reliability – Tools for the Journey WORLD CLASS RELIABILITY PROACTIVE REACTIVE GET GOOD AT FIREFIGHTING UNDERSTAND WHAT IS TRULY CRITICAL AND WHY! UNPREDICTED ‘AGEING’ FAILURES Criticality Assessments © ABB Group November 22, 2011 | Slide 11 An integrated approach to Management of Integrity Criticality and Management of Risk Asset Life Studies Process Hazard Review Training, Coaching and People Development SIL Total Plant Reliability © ABB Group November 22, 2011 | Slide 12 Effective Turnaround Management Specialist Technical Consultancy RBI+ and RCM Rotating & Machines Electrical Control Instrumentation Civil & Structural Vessels Piping Fired Equipment Materials Process Asset Life Strategy Review Process Deliverables Identify Gaps and issues Incorporate what’s already in place Recommendations to address the Gaps Produce a Harmonised Picture © ABB Group November 22, 2011 | Slide 13 Objective Case Study © ABB Group November 22, 2011 | Slide 14 Asset Life Issues for Oil, Gas & Petrochemicals Key items found during ABB Studies Equipment projected as not fit for purpose Increased congestion of equipment and removal of redundant equipment Replacement of obsolete equipment Operation outside original design or lack of turn down capacity Reducing equipment and key system reliability Energy Efficiency ‘Hidden’ Corrosion Issues – CUI, Storage Tank floors etc Newly emerging deterioration mechanisms, i.e.changes in process fluids Integrity of minor structures (handrails, walkways, ladders) Integrity of utility systems (air, nitrogen, HVAC, cooling water etc.) Electrical power limitations affecting current and future operations Competencies as against ageing workforce retires Leaner organisations with increased reliance on sub-contractors Lack of clarity for ownership of knowledge between operator and sub-contractors Loss of ‘Corporate Knowledge’ and ‘unfriendly’ documentation systems Compliance with current and future environmental legislation © ABB Group November 22, 2011 | Slide 15 Dependable Assets People Systems Investment Profiles & Actions © ABB Group November 22, 2011 | Slide 16 © ABB Group November 22, 2011 | Slide 17
