bahrain petroleum company (bapco) bapco case … it is not surprising that oe is different for...
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Bahrain Petroleum Company (Bapco)
Bapco Case Study
Dr Mark Hodgkinson
Prelude
• To put our case study in context.
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Why OE? and What is OE?
• Why OE?
• Bapco Mission Execution =
• Sound Strategy
• +
• Operational Excellence (OE)
(Reference: WPC, Kaplan& Norton)
• What is OE?
• OE =
• A Robust OEMS
• +
• Operational Discipline (OD)
(Reference WPC, Dupont, Bapco)
“Always doing the right thing the right way.”
Therefore it is not surprising that OE is different for different missions
4Bapco Mission Execution = Sound Strategy + OE
Mission: Preserve/Protect Value
Continuously improvevalue
Create Value (Step Jump)
Typical OE Focus
Risk(Safety, Process Safety, Reliability, Costs)
Effectiveness Efficiency
Typical OE Parts
• Leadership Accountability• Operational Discipline• A Process Approach• A Structured top down C.I.
Process (PDCA )• Clear expectations for
critical processes.
• Leadership Systems Thinking• Policies, Standards and
Procedures published.• A Process Approach• Various or multiple C.I. tools
and programs.• Leveraged Management
Systems
• Entrepreneurial Leadership
• Discretion given to achieve results
• Calculated Risk Approach
• Individual and team innovation
• Reduce waste (Lean Six Sigma)
Our Results 2015:
• Our Results
• Record Personal Safety: Approaching 15 million person hours
without a lost time injury.
– 100% improvement
• Process Safety: 370 days without the Tier 1 Loss of containment
– 200% improvement
• Reliability: A record 384 days without a unplanned shutdown.
– 150% improvement
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Let’s look at the factors in this success.
The OEMS:
OE Management System
Leadership Accountability
Management System Process
AssessmentVision &
Objectives
PlanningLeadership
AccountabilityReview
Implementation
OE Expectations
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• Set an OE Vision
• Conduct gap Assessments
• Prioritize gaps
• Develop 3-year Plan
• Integrate into Business Plans
• Assign tasks and process roles
in PMP
• Implement OE plans
• Build or improve OE Processes
and Standards
• Regularly Review and measure
progress.
OEMS Journey
7
0
5
10
15
20
25
2011 2012 2013 2014 2015
Unsatisfactory (1)
Satisfactory (2-3)
At Best Pract, >=4
External Audit Results for OE
Bapco Case Study
• OE = A Robust OEMS + Operational
Discipline (OD)
• A Robust OEMS
– OE Fluency
• Concurrently building OD
– We have built a base..
• Osool Bapco
• Leadership Accountability
• Here is how we are moving on OD
– OD = Governance + Verification/Validation
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Governance
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Governance: Operational
• Performance of controls for Personal Safety, Process
Safety, Occupational Health/Hygiene, Environment
• Drill down to specific individual issues.
• Performance of controls for Maintenance and
Reliability
• Drill down to specific individual issues.
• Performance of controls for Optimization
Performance
• Drill down to specific individual issues.
• Performance of controls for Capital Project Status
• Drill down to specific individual issues.
• Performance of controls for Human factors Drill down
to specific individual issues.
• Drill down to specific individual issues.
Governance: A review activity. These are not problem solving meetings (e.g Area
Reliability Team meetings) and not planning meetings (e.g Priority Output).
Governance: Operational (2)
• Governance Report
• From XHQ via SSRS
– 15 Data Bases
• Automated Report
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Governance: Functional (Example EHS Committee)
• Personal Safety Processes
• Performance versus company targets
• Sub Organizational Performance.
• Process Safety Processes
• Performance versus company targets
• Sub Organizational Performance.
• Occupational Health Processes
• Performance versus company targets
• Sub Organizational Performance.
• Occupational Hygine Processes
• Performance versus company targets
• Sub Organizational Performance.
• Environmental Control Processes.
• Performance versus company targets
• Sub Organizational Performance.
Top Leadership+Subject Matter Experts• Personal Safety• Health• Process Safety• Environment• Compliance
Governance: Functional (Example EHS Committee) (2)
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Governance: Functional (Example EHS Committee) (3)
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Verification and Validation
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Verification and Validation
• What is V&V?
• Verification refers to checking that the right work is being done the right way.
– In Bapco it refers to the duties of Superintendents and Managers that ensure that (a)
Supervision is being carries out by first line supervisors to standard, (b) that the right
thing is being done the right way, always.
• Validation is conducted by Leaders one level higher than the leaders performing the
verification.
– In Bapco is the process where we validate that Verification processes are effective,
efficient and delivering business goals. It is intended to be personal process visible
to the workforce where the Leader goes two (2) or three (3) levels down to Validate
the findings of Verifications with front line employees.
• How do we perform V&V?
• PEI: Prepare, Engage and Instill: A method of targeted V&V’s concentrating on positive
feedback to instill OE culture.
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Verification and Validation
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Verification and Validation
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Verification and Validation
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Conclusion:
• OE = OEMS + OD
• OD = Governance + Verification/Validation
• Governance
– The adoption of Operational Excellence is accelerated by technology
assisted systematic governance.
– The technology already exist and can be easily leveraged
– Operational Governance needs to be efficient if it seeks to be effective in the
long term
– Operational Intelligence is key in the governance of a continuous process
like Refining or oil & gas production
• Verification and Validation
– Every day, there is likely some form of “constructive” audit or review
happening in a unit.
– Visible interest by leaders in the day to day rolls of the workforce
– Planned Positive Reinforcement works!