Working togetherfor a safer world

Equipment failures cost global oil and gas operators and other asset-intensive industries billions of dollars every year, in addition to jeopardising the safety of equipment, plants, people and the environment.

This paper offers an introduction into how embedding Risk Based Inspection (RBI) functionality in IBM Maximo creates value to oil and gas operators and other asset-intensive industries, by providing better visibility on risk-based monitoring to improve safety, equipment integrity and operational reliability, which can result in uptime equipment gains of at least 20%.

Why RBI?Lloyd’s Register Energy believes RBI encompasses more than just optimal inspection regimes; it also provides the optimal maintenance tasks and frequency based on the identified failure mechanisms.

A good RBI program identifies the equipment items that contribute to high risk due to a high likelihood of failure from poorly understood damage mechanisms.

The RBI analysis provides the right insights, to make the right decisions, to keep assets “under control” – operating within set boundaries for business performance, safety, and compliance at all times:

• Reduces unplanned downtime• Reduces failures, specifically

HSE and catastrophic ones• Can be easily applied to aging

plants with unknowns• Balances long range

improvements with quick wins

Challenges with existing risk approaches:• Existing risk approaches typically have

a narrow view and look backwards at failures vs. predicting and mitigating.

• There is often a lack of engineering expertise in-house which results in organisations starting from scratch with reliability models every time.

• They lack the ability to close the loop between recommended actions and actual performance.

Financial and Safety case for Risk Based Inspection embedded in IBM Maximo Powered by

Asset Intensive Industry Goals

To Improve: • Uptime• Asset longevity• Safety and Risk Management• Improve yield• Cost control

To achieve:• Safe operations• Profit and ROI• Balance long/short decisions• Sustainability• Regulatory

Sustainable solution over time:

Continuous improvement cycle

leverages models and libraries

Traditional Approach The cost and effort to manage risk increases significantly over time

Decrease effort/cost, increasing knowledge

Acceptable Limits

Time

PLAN

CHECK

DOUPDATE

PLAN

CHECK

UPDATE DO

Ris

kMoving from a time based to risk based approach:A good RBI system should allow the management of the historical inspection and RBI analysis information – typically this data can be transferred and preserved. If managing from a strict time-based approach, it is more than likely the owner/operator will probably only have basic equipment tag, design, and construction information on file.

Depending on the level of risk approach the owner/operator chooses to go with (qualitative, semi-quantitative, or quantitative), there may be a requirement to collect additional process data and perform analysis.

“Prioritise and optimise inspection and maintenance regimes, improve safety and reduce repair costs with RBI.”

Equipped with the right RBI technology and methodology, owner/operators can gain the knowledge to make safe and cost effective business decisions as the age of the facility increases.

The approach focuses on good business practice, not just compliance. Value can be created by reducing the costs associated with the inspection and maintenance of the assets, but also increased uptime by avoiding failures.

Cu

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Age of Plant

Increasing• High Potential Incidents (MI)• Leak Repair Clamps• Environmental Events

The intent of the LR Asset Integrity approach is to focus resources on critical equipment in ways which will prevent failures, particularly catastrophic ones.

For example, inspections on higher risk items may have to be added or increased while at the same time, inspections on low risk items are candidates to reduce or eliminate.

Additionally, inspections that do not increase the confidence in the condition of the equipment are candidates to be eliminated, while the correct inspection method and interval can be adjusted to maintain an acceptable level of risk. In many cases, intervals can be extended while keeping risk at an acceptable level. In every case, the inspection planning will account for all regulatory requirements.

Unacceptable Risk/POF

Perform CM/PM and fix if needed

Activity Interval

Pro

bab

ility

of

Failu

re

Time

“Identity and focus resources on critical equipment.”

Overall risk reduction target

Equipment Component Count

14,000,000

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

011 105 209 313 417 521 625 729 833 937 1041 1145 1249 1353 1457 1561 1665 1769 1873 1977 2081 2185

Cu

mu

lati

ve R

isk

($/y

r)

2 1 1 1 0 0 0238 2 61 81 79 17 0248 3 91 70 74 13 0465 4 76 296 71 17 5

1232 5 588 535 36 65 8E D C B A

2185 817 983 260 112 13

PLAN

EVALUATE

PERFORMUPDATE

20 1 10 5 5 0 0246 2 72 81 74 18 1235 3 71 77 74 12 1

1252 4 576 571 85 17 3432 5 288 35 36 65 8

E D C B A2185 1017 769 274 112 13

The Financial CaseCustomers have large investments within their Enterprise Asset Management (EAM) systems primarily to improve uptime, extend asset longevity, provide visibility to maintenance, manage safety and risk, and improve inventory. However, the EAM systems lack the engineering models to realise the full potential.

LR Energy provides an industry leading solution that is embedded within the client’s EAM system with a first release in IBM Maximo.

By embedding the solution within the EAM system, the approach allows for two primary benefits to the customer:

• Allows operators to realise existing EAM investments in modules such as Change Management, Compliance, Qualifications, etc. by combining the Asset Integrity tools with existing EAM modules to provide a holistic view of assets for tactical decision making.

• Provides valuable Asset Integrity tools such as RBI and Reliability Centred Maintenance (RCM) without the cost of expensive integration and data transfer. Other functionality includes standardised Failure Mode and Effects Analysis (FMEA) to understand the failure modes that may impact equipment operation and a Root Cause Analysis (RCA) function to provide understanding in the event of failure occurring so that actions may be put in place to prevent further failures, including those on similar equipment.

Within a single data source, the overall process drives continuous improvement to ensure key equipment performance data, ranging from condition monitoring, inspection data, predictive engineering models, and maintenance feedback, is recorded and analysed in IBM Maximo to improve equipment integrity through appropriate knowledge management.

“Leverage existing EAM Investments”

The Safety CaseImplementation of a RBI solution that embeds in EAM systems, helps to quantify your health, safety & environmental (HSE) risk, allows for the prediction of failures, focuses resources and fosters continuous improvement.

Post initial analysis – In an example, the graph opposite shows that less than 10% of 2000 components carries the bulk of the risk. Predicting the failures per mechanism, quantifying the HSE risks (in this case dollars per year), allows the operator to easily focus resources on areas that carry the bulk of the risk.

Post mitigation steps - The risk of failures can be dramatically reduced.

Summary RBI embedded in IBM Maximo allows operators to prioritise and optimise inspection and maintenance regimes, achieving cost savings of up to 50% whilst reducing operational risk. In addition it can help increase uptime equipment availability by at least 20%, avoiding failures by creating a strong understanding of predictable and non-predictable failure modes.

Time to Value• Proven approach with preconfigured models,

though customers can develop their own

Focus limited resources on most important items

• Predictive models

• Optimal life performance of the asset

Integrated processes that generate maximum ROI

• Leverage existing EAM investments

• Reduce cost of ownership

As-Found Risk determined in 3.5 months

Time-Based

Condition-Based

Run to Fail

Failure/RCA

NCR

Trending

Compliance

IBM Maximo

strEAM+

Inspection

Maintenance

Telemetry

ExecuteAnalyse

Asset Management Strategy

Decommission

In-Service

Construction

Design

Improve

RBI

RCM

Risk-Based Optimise

CM’s

PM’s

MOC

Spares

Plan

Work Order

Job Plan/Details

Work Pack

Safety

Framework for the full asset life cycle stored and performed in the EAM system

Results • Strong understanding of where

inspections can be optimised and resources to be focused. As shown in the cumulative risk curve below, less that 10% of the assets typically carry 95% of the risk.

• Based on the approach, the customer

was able to show tremendous saving by safely avoiding internal inspections while simultaneously reducing the number of days on the platform.

Old approach Inspection days on Asset post LR Asset Integrity Approach

6050

708090

100

40302010

02007 2008 2009 2010

Equipment Component Count

240,000

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($/y

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230,000220,000210,000200,000190,000180,000170,000160,000150,000140,000130,000120,000110,000100,00090,00080,00070,00060,00050,00040,00030,00020,00010,000

01 4 8 13 21 29 37 45 53 61 69 77 85 93 102 113 124 135 146 157 168 179 190 201 212 223 234 245 256 267 278 289 300 311

Cumulative Risk Curves, Production and Safety Losses

Continuous

Mitigation Programs

Barriers EVENT

KPI’s

Threats

Quarterly

Leading Indicators

Risk Based Annual Inspection

Program

Chemical Inhibition Materials Selection

Corrosion Monitoring

Materials Selection External Coatings CP

CWT Surveys

Material Selection & Op. Conditions

Sand Detectors

Annual

Lagging Indicators

Risk Based Inspection Program

Risk Based Inspection Program

Risk Based Inspection Program

External Corrosion

Internal Erosion

Internal Corrosion

Loss of Containment

Case Study 1

Top side pressure systems on Floating Offshore Installation

Objective• Customer annual maintenance budgets

were asked to be reduced safely without jeopardising production and having a loss of containment event.

Solution delivered• Implement an RBI methodology with

the aim of understanding the damage mechanisms and consequences of a loss of containment.

Old approach Costs post LR Asset Integrity Approach

300250200150100

500

2007 2008 2009 2010

Case Study 2

Turnaround improvement across a refining enterprise

Objective• Migrating time-based fixed

equipment inspection program to improve turnaround plans.

Solution delivered• Study covering over 2,300 assets,

to identify risk level and degradation mechanisms.

• Alignment of inspection methodologies.

Results• Deferred internal inspections and

servicing of relief valves that did not substantially change or exceed the corporate risk profile, to the second turnaround – realising over $2.5m in turnaround savings.

• Combination of risk reduction and cost savings estimated to exceed $160m.

• Ongoing savings for turnaround plans.

Case Study 3

Reduce high potential incidents at a petrochemical plant

Objective• Over a 29 month period, there were

25 high potential incidents (HPIs) and 65 leak repair clamps installed.

• As part of the implementation project, the following goals were set:

- Reduce high potential incidents (HPIs) by 90%.

- Reduce leak repair clamps by 90%. - Reduce NDE locations on piping

by at least 50%.

Solution delivered• An analysis of the 1459 fixed

equipment and piping items in the study demonstrated that 90% of the risk is associated with only 6% of the total equipment items in the study.

Results• The plant has achieved value from

the program by focusing very limited resources to accomplish the following:- Significant reduction

in high potential and environmental incidents.

- A reduction in process leaks to the atmosphere.

- The prevention of numerous process leaks by focusing inspection in areas of highest risk.

- The few leaks encountered since 2003 were predicted by the program, but inspections had not been completed prior to the leak.

- No process leaks have required a shutdown of the ethylene plant.

- The maintenance and inspection costs have been reduced by more than $1.5m/yr.

Lloyd’s Register Energy provides Asset Integrity Services to help clients manage the integrity, performance and reliability of their assets from design through to decommissioning. For more information on how we can support your business please visit www.lr.org/energy or contact us at assetintegrity@lr.org

Lloyd’s Register is a trading name of Lloyd’s Register Group Limited and its subsidiaries.For further details please see www.lr.org/entities© Lloyd’s Register Group Limited 2015

www.lr.org/energy

Lloyd’s Register Group

9,000+Employees worldwide

60,000Clients

78Countries

Click for other resources: ‘strEAM+ RBI’ FactsheetStrategic Alliance between LR and MaxGrip

Contact us:To find more about how we can embed RBI in your EAM:E: assetintegrity@lr.orgT: +1 281 675 3100 (US) +44 (0)1224 267400 (UK/Europe)

This paper has been developed in collaboration between Lloyd’s Register Energy and MaxGrip

Lloyd’s Register Energy’s RBI Asset Integrity Software Solution LR Energy’s new RBI software solution, strEAM+ RBI offers an exclusive software solution that directly embeds into major Enterprise Asset Management (EAM) systems including IBM Maximo, SAP and INFOR EAM.

strEAM+ RBI provides oil and gas operators and other asset-intensive industries, with better visibility on risk-based monitoring to improve safety, equipment integrity and operational reliability.

We can help you achieve cost savings of up to 50% for inspection and maintenance of assets whilst reducing operational risk. In addition we can help increase your uptime equipment availability by at least 20%, avoiding failures by creating a strong understanding of predictable and non-predictable failure modes.

This new solution sits within the portfolio of modules being developed as part of the next generation of our highly acclaimed reliability-based mechanical integrity (RBMI) software package which will offer additional asset integrity functionality including Reliability Centered Maintenance (RCM), Root Cause Analysis (RCA), and Failure Modes and Effects Analysis (FMEA) as part of an integrated approach to optimising the performance of assets and facilities.

strEAM+ RBI has been developed in alliance with MaxGrip, a leading developer of Asset Performance Management software. MaxGrip’s strEAM+ software solution is the only available solution directly integrated into IBM Maximo. To read more about our strategic alliance click here.

About Lloyd’s Register EnergyLloyd’s Register Energy applies its expert knowledge and independence to help clients and regulators design, construct and operate their capital intensive assets and businesses to their highest levels of safety and performance.