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The Resilient Plant: The Truth About Workforce Enablement

The Resilient Plant: The Truth About Workforce Enablement. Session Name: HPI Forum 2 Session ID #: INHP Presented by Charles Mohrmann 11/09/11. What is a Resilient Plant?. It is not a “perfect plant”… there has never been and never will be a “perfect” plant.

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The Resilient Plant: The Truth About Workforce Enablement

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  1. The Resilient Plant: The Truth About Workforce Enablement Session Name: HPI Forum 2 Session ID #: INHP Presented by Charles Mohrmann 11/09/11 Invensys proprietary & confidential

  2. What is a Resilient Plant? • It is not a “perfect plant”… there has never been and never will be a “perfect” plant. • It is not the bricks and mortar or “lights out” automation that makes a plant resilient. • It is the workforce that makes a plant resilient… people who overcome abnormal situations… who prevail against unforeseen constraints and over unexpected events. Fukushima Daiichi nuclear power plant

  3. Failure to Identify/Assess Hazards Where there is no situational awareness … there is complacency. • #1 cause contributing to Environmental-Safety-Health (ESH) incidents in the chemical industry according to the Department of Energy’s Occurrence Reporting and Processing System (ORPS) summary report by the Office of Health Safety and Security Health (HSS). • Failures to identify hazards and/or analyze hazards properly is the root cause for 44% of all incidents • Human error and conduct of operations combined accounts for 21% of incidents *Source: Recommendations for Addressing Recurring Chemical Incidents at the U.S. Department of Energy - 2005

  4. The Cost of Procedural Failure • According to a recent ARC Advisory Group study titled “Why We Need a Better Approach to Procedural Automation,” it was reported that • operator error is the leading cause accounting for the highest dollar losses per incident in the process industries and results in 42 percent of unscheduled plant shutdowns. • In 2010, one major oil company paid: • $15M in fines and entered into a consent decree with the U.S. Environmental Protection Agency (EPA) • $51M in fines related to one facility to the U.S Occupational Safety and Health Administration (OSHA) • $20B in escrow to the U.S. government to cover potential costs of an oil spill

  5. Multimillion Incident an Exception? … hardly • Average cost per major incident related to operator error exceeds $80M. • Findings by the Chemical Safety Topical Committee (funded by DOE) reveal an average of one chemical incident/day. • Average cost to comply with ORPS process is estimated at $2M per incident * * Source: Gulf Coast Plant Managers Forum Workshop – Plant Success 2011 Note: Incident compliance cost requirement does not take into account other direct or indirect costs (e.g. repairing equipment/facilities, employee injuries, revising procedures, increased training, work slowdowns and stoppages during accident investigations and corrective action implementations, etc.).

  6. Why is Achieving World Class Workforce Enablement So Hard? • Problem compounded by aging workforces and need to assimilate new workers more quickly • Problem exacerbated by ongoing deluge of new regulations that create an operating environment that did not exist the year before • “Traditional” training methods can no longer overcome this workforce turnover/regulatory compliance crossfire

  7. Why can’t traditional training methods keep up anymore? • All organizations train their people, and most spend significant money doing so. • 90% of respondents to a 2010 McKinsey & Company surveysaid that building capabilities was a Top 10 priority for their organizations. • The study notes that only 25% of companies surveyed said their training programs are effective improving performance measurably and that only 8% track a program’s return on investment. It is imperative that senior executives not only understand these trends, but must think strategically about how to adapt management and organizational structures to meet these new demands.” - McKinsey & Company There has to be a better way … and there is!

  8. What is Your Vision for Workforce Enablement? Is Your Workforce Enabled to Identify Hazards and Empowered to Act? Can you fly this thing?

  9. A Perspective on Workforce Enablement • Encompasses all areas of plant operations (e.g. board operators, field operators, maintenance, EHS Personnel etc.). • Recognized as one of the foremost contributors to bottom-line performance improvements for industrial operations and credited with safely delivering the highest possible availability, reliability and throughput. • Results derived from a combination of skills, tools and system design that includes the following elements: • Competency based learning • Accessibility of information and procedures on • demand • Human factor issues (situational awareness and • responsiveness) • Effective communications and collaboration • Control room/system design and environment • Computer Graphic User Interface design for • relevance • Automation and control system integrity and • reliability • Abnormal Situation Management (including alarm • system effectiveness) • Asset performance management • System data integrity/ accuracy/ reliability

  10. A Strategy to Improve Workforce Enablement • The goal - Operation executives want to run plants safely and profitably • and know in order to achieve these objectives they must empower • employees to make better decisions faster. The Workforce Enablement • strategy framework should address the company’s management of: • content systems (knowledge, document, intellectual property) • learning (classroom and experiential) • business /work processes (supports continuous performance improvement)

  11. Getting It Right “Getting it right” requires identifying and prioritizing where Workforce Enablement capabilities can best improve operational performance. Factors to be considered include:

  12. What is Technology’s Role in Workforce Enablement? • Technology’s role … if it is good technology, provides three benefits: • Serves as catalyst for change by providing a framework to reduce risk of implementing the process improvements • Accelerates the deployment of the process improvements • Helps gain user acceptance to sustain the process improvements • The process improvement combined with the technology drive the new • desired behavioral and culture changes to improve safety and profitability • and empower the workforce to make better, faster decisions. Let’s look at three examples… EYESIM 3D Training Simulator

  13. Alarm Management • Studies done in the Petrochemical industry indicate that 3-8% of production is lost due to abnormal situation mismanagement • Risk reduction (human error reduction) • Improving process safety

  14. Alarm Management Success Story • About the Client: • Marathon Oil Robinson, IL • 150K+ barrels per day refinery • What Invensys Operations Management Delivered: • Developed “Site Specific Alarm Philosophy” • Conducted an alarm rationalization review of 14,681 alarms • Benefits: • Reduction/mitigation of process disruptions • Decreased cost of preventable abnormal situations • Improved Operator's situation awareness • Enhanced decision support for the operator • Improved operational integrity • Increased operating revenues • Increased annual production by 3% by avoiding unplanned outages

  15. Mobile Workforce and Decision Support Systems Global 1000 client companies 100+ Process Plants (1000s of process units) 300+ Field Workers use IntelaTrac daily 20,000+ Power companies (> 70 plants in U.S.) 10+ Refineries (> 50 of Top 100 in U.S.) 70+ Chemical companies (>100 sites) 35+ Upstream companies 10+ Other: Metals & Mining, Pulp & Paper, Water/Wastewater, Discrete Manufacturing, and Field Service

  16. One Company’s New Path Forward • Chevron Corporation’s Top Ten Tenets of Operation • 1.  Always operate within design or environmental limits • 2.  Always operate in a safe and controlled condition • 3.  Always ensure safety devices are in place and functioning • 4.  Always follow safe work practices and procedures • 5.  Always meet or exceed customers’ requirements • 6.  Always maintain integrity of dedicated systems • 7.  Always comply with all applicable rules and regulations • 8.  Always address abnormal conditions • 9.  Always follow written procedures for high risk or unusual situations\ • 10. Always involve the right people in decisions that affect procedures & equipment

  17. Mobile Solutions Success Story Problem Description (Paper Based) Results (IntelaTrac Based) • Standardized work processes and best practices • Improved decision support: • Data is available to all using scheduled reports • Engineers and reliability experts can be notified of concerns immediately • More proactive analysis of data yield s efficiencies and maintenance improvements. • Higher equipment availability and faster reaction to plant concerns (typical $1M hard dollar annual savings per site from reduction in unplanned downtime and maintenance cost savings) • More than half of refineries and upstream assets are non-instrumented (lots of manual inspections). Data collected on clipboards and entered into databases or spreadsheets was not timely enough to identify and act upon process data. • “Routine Duties” - compliance tasks, equipment monitoring, routine maintenance , data collection, and general housekeeping – were not standardized • Paper run sheets /logs not easy to locate /analyze • Difficult to trend asset performance over time, across shift changes, etc. • Data was not readily available to people other than operators (supervisors, engineers, HSE etc.) • Economics/tight margins mean you must be efficient and accident free. • Benefits Summary: • Improved safety and environmental performance • Improved availability, reliability, production efficiency and cost savings • Engaged and empowered the 24 X 7 workforce to support enhanced decision-making and optimized workflows Source: Presented by CVX at 2011 Microsoft Global Energy Forum Houston, TX

  18. Operator Training Simulator Experience Hydrocarbon Processing 187 Projects (with majority in refining) Power 184 Projects Over 360 OTS projects delivered to clients

  19. Invensys proprietary & confidential A Phased Approach to Experiential Learning • Single simulation modeling environment for all phases Virtual Reality System • Incremental investment approach Learning Management • Inside and outside workforce High Fidelity Unit Multisite Generic Unit OTS Control Checkout Dynamic Study Existing/ New Controls Generic Unit Existing/ New Process Model

  20. PROCESS DESIGN DCS CONFIGURATION STARTUP andTRAINING PLANT OPERATION • Operator Training Simulators The Only Company With a Complete Solution Set DCS Control logic configured correctly the first time World Class Operator Training Program PLC/SIS/TMC logic Configured Correctly the First Time Optimal Design for Steady State & Transient Conditions Coordinated Training of Control Room and Field Operators Training Programs and Learning Management System Consulting Services

  21. Operator Training Simulator at Nexen Long Lake Business Benefits Well planned and executed training solution was an essential component in the safe and successful commissioning of the most complex state of the art upgrading facility ever • Operators training on simulator one year before Gasifier startup Simulator used the to run hundreds of startups to test SIS sequence logic/graphics to correct control issues resulting in faster commissioning time • Saving in commissioning time: • Identified potential control issues during design phase and corrective actions taken a head of time. • Accident / Incident free commissioning phase – PRICELESS

  22. Benefits from Workforce Enablement (Examples from experiential learning through mobile solutions and operator training systems) • Assimilates new workers in ~25% the time (e.g. 6 months Versus 2 years ) • Increases confidence of all operators to take best practice corrective actions at the point of awareness • Reduces number of abnormal situations and unplanned downtime through proactive behaviors and a culture of ownership • Avoids loss of production reduces damage to equipment and environmental impact • Facilitates coordination of DCS and Manual Plant operations to optimal performance • Catches scores of errors prior to plant deployment and post plant review • Improves start up times and faster recovery from process upsets • Ensures procedural compliance with validation / auditability • Reduces errors during controls and instrument checkout s • Documents training and board and field operator activities • Enhances cross training of board and field operators • Helps captures, establish and execute best practices • Certifies skill levels of operators • Reduces commissioning time

  23. Your Future – Your Success • Knowing that your workforce has a high performance culture that is empowered to make better decisions faster according to your procedural best practices is no longer a potential advantage … it is a mandatory requirement to stay in business from one year to the next. • Future success must deliver execution of best practices at the point of incident for every person in every role for every shift on every day. • Invensys has the expertise and solutions to help you achieve your Workforce Enablement vision as part of your ongoing operational excellence program from awareness and priority assessment through project delivery.

  24. Next Steps for Workforce Enablement Are you “ready and able to enable” your workforce? The Resilient Plant • Ensure safe and profitable operations • Accelerate process improvements • Increase productivity • Sustain cost effective regulatory compliance • Assimilate new workers faster and empower them to succeed Assess Priorities Implement (New Work Processes & Technologies) Raise Awareness

  25. Contact:Charlie Mohrmann Product Marketing & Strategy Director, NAcharles.mohrmann@invensys.com Thank You! Slide 26

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