PSM Key Performance Indicators Nexen Energy ULC SEPT. 26, 2017 CCPS CALGARY REGIONAL MEETING
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1 PSM Key Performance Indicators Nexen Energy ULC SEPT. 26, 2017 CCPS CALGARY REGIONAL MEETING
2 Agenda 1. Why use KPIs, What to Measure? 2. Two Approaches at Nexen 3. Oil Sands PSM Dashboard 4. Current Status and Next Steps 2
3 PSM Pyramid Model Aligned with Heinrich s classic safety pyramid Defects in plant, processes or people can lead to undesirable outcomes Disciplined and systematic approach to identifying and addressing defects reduces the likelihood of escalating consequence events A culture that proactively seeks out defects and maintains a sense of chronic unease is a prerequisite 3
4 Number of Visible Defects Process Safety & Reliability Cultural Maturity Model Fleming et al s HSE Cultural Maturity Model 4
5 PSM Pyramid Model Oil Sands PSM Dashboard is aligned with the API/ANSI RP 754 pyramid model Improve visibility and awareness of PSM performance, based on leading indicators (familiar model from personal safety) More comprehensive view of the health of the people, plant and process barriers, across silos Enable benchmarking of Best in Class performers given wide adoption of the API model API/ANSI RP 754 ABB Ltd. white paper Avoiding the 'watermelon' effect Are we doing enough in the process industry to prevent the next major accident? 5
6 PSM Barrier Model Nexen Offshore dashboards are focused on Major Accident Hazard prevention, mitigation and recovery Safety Case regulated jurisdiction KPIs are organized into People, Process and Plant; as well as asset section and traditional Barriers 6
7 PSM Barrier Model Overall Health indicator for assets is trended Focus is on gains and losses (strengthened or weakened barriers) and persistent underperformance Note data for illustration purposes only 7
8 PSM Review Cycle Week 1 Week 2 Week 3 Week 4 Input Data And PSM Analysis KPI Owner Team Review With Operations At Weekly HSE KPI Meeting (site PMT) Division Stewardship Presentation detailing key issues and action plan to address ELT Stewardship Quarterly Action Items and Data Integrity Questions Action Plan for Continuous Improvement and Barrier Maintenance DATA QUALITY DECISIONS & DIRECTION
9 PSM Dashboard Tier 1 PSEs Tier 1 PSEs Tier 2 PSEs Tier 2 PSEs Tier 3 Safety System Challenges Tier 4 Operating Discipline & Management Systems Small Losses of Containment, PS Near Miss Reports, Challenges to Safety Barriers Management system procedures compliance Used in Alberta, a Non-Safety Case Regulated Jurisdiction Note data for illustration purposes only 9
10 PSM Dashboard Breakdown Base Tier is organized by PSM elements (8 of them). Each PSM Element has one or more KPIs to indicate the health of that management system element Tier 1 PSEs Tier 2 PSEs Tier 3 Safety System Challenges Tier 4 Operating Discipline & Management Systems PSSR ERP PSI SWP HIRA PSSR ERP PSI SWP HIRA Management of Change Conduct of Operations Asset Integrity Area 1 Tier 4 Management Systems Management of Change Conduct of Operations Asset Integrity Area 2 Tier 4 Management Systems Results can be presented by Division, Plant or Area Note data for illustration purposes only 10
11 PSM Dashboard KPI Results Summary Tier PSM Element Sub-Element KPI Name Rule Divn. Result Hazard Identification and Risk Assessment (HIRA) Pre-Startup Safety Review Overdue PHA (incl. Re-HAZOP) Action Items Overdue Revalidation Hazops on Schedule # Exception Actions Overdue Yellow if <=10 Red if >10 Yellow if <=10 Red if >10 Green if >=1 Yellow if >0.5 Red if <=0.5 Yellow if <=10 Red if > Tier 1 Tier 2 Tier 3 Tier 4 Challenges to Safety Barriers Safe Work Permit (SWP) Management of Change (MOC) Hazard Identification and Risk Assessment (HIRA) Tier 1 Recordable Process Safety Events Tier 2 Recordable Process Safety Events Critical Operating Limit Excursion Primary Containment Outside Integrity Limits SIS & BMS Activations Process Safety Near Miss Small Losses of Containment SWP Compliance Audit Safety Bypass Compliance Audit # Safety Bypasses Temp MOCs Expired Permanent MOCs Overdue PHA (incl. Re-HAZOP) Action Items Overdue Revalidation Hazops on Schedule Yellow if =1 Red if >1 Green if < 3 Yellow if =3 Red if >3 Green if <=540 Yellow if <1080 Red if >=1080 Green if < 3 Yellow if <=5 Red if >5 Green if < 5 Yellow if <=15 Red if >15 Green if >40 Yellow if >=30 Red if <30 Green if <50 Yellow if <=60 Red if >60 Green if >=0.9 Yellow if >0.75 Red if <=0.75 Green if >=0.95 Yellow if >0.85 Red if <=0.85 Green if <15 Yellow if <=30 Red if >30 Yellow if <=5 Red if >5 Yellow if <=10 Red if >10 Yellow if <=10 Red if >10 Green if >=1 Yellow if >0.5 Red if <= Conduct of Operations Asset Integrity & Reliability (AI&R) Emergency Response Planning (ERP) Process & Alarm Management Safety Bypass Management Pressure Equipment Integrity Safety Critical Equipment Integrity Green if <1 Average Alarm Rate Yellow if <=1.5 Red if >1.5 Green if <=75 Alarm Burst Count Yellow if <100 Red if >=100 Green if <=50 Average Standing Alarms Yellow if <75 Red if >=75 Green if >0.75 Control Loop Service Yellow if >=0.6 Factor Red if <0.6 Average Suppressed Alarms Average Age of Bypasses (days) Operating Procedure Audit # Non-Conformance Reports Overdue Non-Conformance Report Actions Overdue Vessel/Tank Inspections Overdue PRDs Overdue for Servicing SCE ITPMs Completed on Schedule Completion of Scheduled ERT Drills Green if <15 Yellow if <=30 Red if >30 Green if <60 Yellow if <=90 Red if >90 Green if >=0.95 Yellow if >0.85 Red if <=0.85 Green if <0 Yellow if <=5 Red if >5 Yellow if <=7 Red if >7 Yellow if <=10 Red if >10 Green if <0 Yellow if <=10 Red if >10 Green if >0.9 Red if <0.7 Green if >0.9 Yellow if >=0.75 Red if <0.75 Note data for illustration purposes only
12 PSM Dashboard Overall Health Indicator The Overall PSM Health Indicator is an average of all (28) KPIs in the dashboard: leading and lagging 12 Note data for illustration purposes only
13 Current Status & Next Steps Benefits have been realized through improved compliance on safety critical maintenance, action management Less tangible benefits have been realized through leadership accountability, depth of PSM knowledge, fostering a sense of Chronic Unease Next steps include: In collaboration with the Business Units, revisit the focus areas of the dashboard in 2018 (different PSM elements, different KPIs - e.g. competency, SCE performance) Aligning PSM Dashboard with Canadian HSE Cases 13
14 Questions 14
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