DRIVING PSM PERFORMANCE BEYOND KPI METRICS

Stew art W. Behie, Manager Safety & Process Risk

Occidental Oil and Gas Corporation
Corporate HES Risk Engineering Group

December 12, 2018

Purdue Process Safety and Assurance Center (P2SAC)
Purdue University, West Lafayette, Indiana
Remembering the world’s Process Safety Guru
Discussion Outline

• Review of Process Safety Management (PSM) metrics &

past performance

• The relationship between the non-fatal incident rate and fatal

and serious incidents rates

• Barrier health management as a key to reducing the number

of operating plant incidents

• A different approach to safety to reduce fatal accident rates

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Process Safety Indicators Pyramid
(IOGP, Report 456, November 2018; API 754, April 2016)

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Example of PSM KPI Metrics
• Tier 1 PSE: an unplanned or uncontrolled release of any specified material from a process
that results in one or more of the seven specified consequences.
• Tier 2 PSE: an unplanned or uncontrolled release of any specified material from a process
that results in one or more of the five specified consequences not a Tier 1 release.
• Tier 3 PSE:
• Safe Operating envelop excursion
• Pressure relief device or Emergency blowdown system activation
• Fixed gas detection system activation
• Safety system or device failure to function on demand or test
• Disabled / non-functional safety systems and devices
• Tier 4 PSE:
• Process Hazard Analysis (PHA) Completion
• Process Safety Action Item Closure
• Procedure review
• Work order compliance
• Emergency Response drills
• MOC / PSSR
• Alarm management
• Fatigue risk management

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Safety Performance - LTIF and TRIR
(OGP Safety Performance Indicators 2014)

TRIR LTIF

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Rate of nonfatal injuries resulting in DAW
(Center for Construction Research and Training - CPWR 2016)

FTE - Full-time Equivalent workers

DAW – Days Away from Work

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Occidental Petroleum
Injury & Illness Incidence Rate (IIR)
Rate per 200,000 Exposure Hours

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Fatal Accidents
(OGP Safety Performance Indicators 2014)

Fatal incident rate is decreasing but leveling off

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Lost Work Day Cases – Severity
(OGP Safety Performance Indicators, July 2014, OGP Data Series)

The number of serious incidents have decreased but the severity

of those occurring has increased over past 10 years.

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Trend in Total Losses by Year (all industry sectors)
(Refineries, Petrochemicals, Gas processing, Terminals and distribution, Upstream)

No fall in major
incidents over the past
two decades.

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The Safety Triangle of Accident Prevention

• Inherent assumption: Correlation between the bottom and

the top of the pyramid
• A reduction of low consequence incidents will reduce the
number of high consequence incidents

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Is this a Dangerous Assumption?

Are the root causes of low and high consequence

incidents very different?

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Safe Operations?

Low incidents rates are not an indication of safe operations

Deep Water Horizon operator Transocean had a great safety record in the years
leading up to the 2010 incident that killed 11 people

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The Nature of Fatal Accidents

• Anomalies / outliers
• Do not follow a pattern that can be identified, predicted &
prevented
• Cannot be prevented by reducing non-fatal incidents

• Not a failure of prevention systems

• Are a failure of preparation and recovery mechanisms

• Reduction requires a different focus to overall safety

management

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Reducing the Number of Fatal Incidents

• PSM KPI metrics are necessary but not sufficient to drive

overall safety performance further
– Tier 3 and 4 metrics are driving these improvements
– Fewer incidents are occurring but severity is increasing

• Approach: Implement a tool that operators better understand

and relate to
– Based on equipment performance
– Based on positive outcome measure (presence of controls)

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Trends in Process Safety Enhancement

Existing PSM programs are insufficient to promote step-change improvements.

A new approach is needed to achieve and maintain the health of critical plant component barrier systems
Barriers Types – OGP

• Active barriers
– Hardware
– Human performance

• Inactive / Support System barriers

• Management System components

Reference: “Standardization of barrier definitions”, International Association of Oil and

Gas Producers (OGP), Report 544, Supplement to Report No. 415, April 2016

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Hardware Barriers – OGP Definitions

Reference: “Standardization of barrier definitions”, International Association of Oil and

Gas Producers (OGP), Report 544, Supplement to Report No. 415, April 2016

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Human Barriers

Reference: “Standardization of barrier definitions”, International Association of Oil and

Gas Producers (OGP), Report 544, Supplement to Report No. 415, April 2016

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Management System Barriers

Reference: “Standardization of barrier definitions”, International Association of Oil and

Gas Producers (OGP), Report 544, Supplement to Report No. 415, April 2016

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Barrier Health (BH) Assessment

• Focus on “critical” equipment / hardware barriers

• Components provide positive control of operating risks
– Mitigation elements identified in PHA studies
• PSVs, ESDVs, F&G D&P systems, PCSs, etc.
– High-value components
– Rigorous Preventative Maintenance registered in
Maintenance Management System
• Assess the health of critical components in real-time
assessments against performance standards

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Hardware Barrier Health Models

• Real time BH models have been developed and

are in place in a number of operating facilities
• Consultant advanced models in place
– RiskPoynt
– Petrotechnics
• Adopt OGP hardware barrier categories
• In-house development at Oxy

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RiskPoynt - Operations Display

Simultaneous area-level view allows operations to view the barrier condition and
include permit and isolation information from external permit systems.
Advantage – a clear view of operations hazards with information that is collected
daily and stored for future reference.
BH Model Key Performance Indicators

API standard process safety KPIs are listed and tracked based on integration from external
sources. Advantage – reduces reporting time and administration of data collection, and
provides a consistent approach to industry related process safety performance measures.
Petrotechnics Barrier Health Model
(mapping systems data to barriers)
Mapping systems data to barriers

Mapping work activities

to barriers

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Barrier Health Models

• Focus at the plant level

• Full engagement of O&M staff
• Near real time assessment of barriers health
against performance standards
• Focus on managing consequences
• Allows work execution plans to be optimized
• Management access to output

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Safety Differently

 Balancing prevention, execution and recovery to reduce

chances of serious incidents
– Implement a bottom-up approach
– Engage and empower of plant staff
– Focus on consequence (not hazard) management

 Combine “Stop work” authority with “do not start” work

authority
 Ensure that all the safeguards are in place to “fail safely”
 Focus on identifying and maintaining controls

 Rigorous risk management focused at the work site

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Conclusions

• PSM KPIs have driven improvements in non-fatal and fatal

incident rates

• Number of incidents has decreased but the severity of

those occurring has increased

• Barrier Health models offer the potential to further reduce

number and costs of incidents

• Different focus on safety is needed to help reduce the

number of fatal incidents

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References
1. “Stepping Out of the Triangle and into the Field”, Jae Teakle, Tanya Lughermo, Tom
Mannion, Richard Biddle (Chevron), presented at the SPE International Conference on
Health, Safety and Environment in Oil and Gas Exploration and Production, 11-13
September, Perth, Australia 2012
2. “The Human Factor, Process Safety and Culture”, SPE Technical Report, March 2014
3. “Assuring an Adequate Safety Culture”, Ken Arnold, Major Projects, Internal Presentation,
Occidental Oil and Gas, 2017
4. “National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, Report
to the President, January 2011
5. “Buckets to Disaster: Guidance to Improve the Outcome of Critical Technical Decisions”,
Behie, Mannan et al, presented at the 20th International PSM Symposium, Mary Kay
O’Connor Process Safety Center, Texas A&M University, October 2017
6. “A Guide to selecting Appropriate Tools to Improve HES Culture”, International Association
of Oil and Gas Producers (OGP), Report No. 435, March 2010
7. “Safety Management and Safety Culture, The Long, Hard and Winding Road”, Prof.
Patrick Hudson, Center for Safety Research, Leiden University, Netherlands
8. “Process safety – Leading Key performance Indicators”, International Association of Oil
and Gas Producers (OGP), Report 556, Supplement to Report No. 456, July 2016

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References

9. “Standardization of barrier definitions”, International Association of Oil and Gas Producers

(OGP), Report 544, Supplement to Report No. 415, April 2016
10. “Workplace Fatalities, Failure to Predict”, Todd Conklin, 2017.
11. “The danger of losing situational awareness”, Sidney Dekker, Cognition, Technology &
Work, Volume 17, Number 2, 2015.
12. “Becoming the Worlds Safest Company, Tesla’s Journey”, Laurie Muse Shelby, EHS Vice
President, Tesla, Inc., Keynote Address at the MKOPSC International Symposium, October
2018
13. “The Compelling case for change”, Tim Fleming, GM HSE, Laing O’Rourke, October 2017
14. “The Largest Losses 1978 – 2107, Large Property Damage Losses in the Hydrocarbon
Industry”, 25th Edition, Marsh & McLennan, March 2018
15. “Process Safety - Recommended practice on Key Performance Indicators”, International
Association of Oil and Gas Producers (OGP), Report 456, November 2018.

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 The End

Thank you for your

attention
Questions?
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References

Measuring the Positives

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Active Barriers

Reference: “Process Safety – Leading key performance indicators”, International Association of Oil
and Gas Producers (OGP), Report 556, Supplement to Report No. 456, July 2016

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Plant Risk Sources

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Reduce FAR Need to See Safety Differently

Sidney Dekker, Oil and Gas Safety in a Post-Truth World, May 2018

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Safety Culture Ladder

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