Chevron

===

Operational Excellence
Management System
An Overview of the OEMS

;jiiIl

Operatio nal Excellence

Management System

Leadership Accountability

Management Syste m Process

OE Expectat ions

14

OEMS Implementation

15

Corporate DE Review Process

16

Tenet s of Opera t ion

Inside
Back

Glossary

Cover

Chairman's Message
I am a strong and tireless advocate for operat iona l excelle nce. Operational excellence

is not only consistent wit h OUf commit ment to protect people and the environment. but
it also makes good busin ess sense. Safe, reliable, efficient and environmenta lly sound
operations are key to our company's fin ancial success. I expect t hat every j ob and every

task can be completed every day wit hout injury or incident.

Achi eving operat iona l excellence requires a systemat ic appro ach and a commil ment to
incident-free operations - always and everywhere. That's th e power of th e Operati onal
Excelle nce Management System (OEMS).
OEMS prov ides a co mmon pro cess that can be used in our operations around the globe.

It enables our busin esses to manage th eir safety, health and envi ron mental effo rts and to
conti nually improve the rel iability and effic iency of thei r operations. Driven by leaders hip,
it provides a system fo r adopt ing best practices and sta ndards, helps ensure th at our
company attains wor ld-class performance and deliver s sustai ned value .
Dave O'Reill y
Chairmen and CEO

of Chevron Corporat ion

I ask you to develop your OE knowledg e and skills , adopt and cascade the Tenets of
Operat ion and appl y the management system. By doing so, you will be creatin g a company
t hat is safer, more reliable, mo re efficient and environmentall y sound - a company that is
a top per for mer and compe ti tor in every sense of t he word .

----- - - - - - -

Operational Excellence
Vision and Values
Our vi sion for ope ratio nal excellence d ir ectl y

As a busines s and as a member o f the wo rld com munity. Chevro n is com-

suppo r ts our corporate vision " te be the glo bal

mitted to crea ting su per io r val ue for o ur invest or s. cus to mers , par tners.

energy company mos t admired l or it s peo ple.

host governments, local commu nities and our em ployees. To succeed. we

par tnership and pe rfor mance ." With respec t

must deliver wo rl d-cl ass performance and exceed th e capabi lities 01ou r

to o pe rat io nal excel lence, our vision is Mia be

str ong est ccmceutcrs.

recognized and admired by ind ustry and the

com munities in which we operate as wo rld-cl ass

Operat ional esceuence (OE) is a cr itical d river lo r business success and

in s.afe-tV. health. envi ro nment, reliability

an e nabling st ra tegy fo r Chev ron. Operational excellence is def ined as

and efficiency."

..t he syst ema ti c ma nagemen t o f safety, h ealth, e nvironment, re liabilit y

and efficiency to achieve worl d-cla ss per fo rmance."

Objectives
To bett er describe "world-c lass performan ce,"
th e foll ow ing co rpo r ate DE Object ives have been
esta blis hed. We will systematic ally mana ge DE in

order 10:

To ach ieve and sustain hig h level s of per form ance, we mus t de velop
st ro ng capability in ope r at io na l excell ence th ro ugh out Chevro n. Thi s
requires ac ti ve leadership and all employees to be e ngaged. We mu st
develop a cult u re wh ere ever yon e believes that all incidents a re prevent able and th at " zero incidents " is possib le. Wit h enga ged and com mi tted

Achieve an inj ury- f r ee wo rk place.

Promo te a healthy wo rkplac e and

leaders hip, wo rld-class processes and an OE cult ur e we can ach ieve ou r

objec tives in o pe rat io nal excellence.

mi tiga te significant heal th r isks.

Elimina te spill s and environme nta l
incidents. Identify and mi t iga te key
environmental risks.
Operate inciden t- fr ee w ith ind us tr yleading asset r eliabili ty.
Maximi ze the efficie nt use o f resources
and assets.

This do cu ment pro vides an overview of t he Operational Excellence

Management System (OEMS), ou r st and ar d approach for achieving
world -class pe rfor mance. It includes gen er al guid ance for the implement ation and o perati o n of the OEMS. More deta iled gu idan ce can be fo und o n
the Operat ional Excelle nce webs it e and wit hin the OE Sta nda rd Pr ocess
docu mentati on. the l eader 's Guide to the OEMS and in the onl ine OE
Cer t ificat io n mod ules.

The Operational Excellence

Management System (OEMS)
The Operational Excellence
Management System consists
of three parts:
Leadership Accountability
Management System Process
OE Expectations
With operations sprea d acro ss t he glo be, we can im prove perfor ma nce mor e qu ickl y and susta in ou r results eff icient ly if all our

Operational excellence is not

bus inesses follo w a sta ndard approac h t o DE.

something separate from our

Our Standard Approach

business; it is how we must

The OEMS is Chevron's sta ndard approac h for achieving

run our business to achieve

world-class performance. Using a standard app roach to

systematically identify and close per formance gaps, we can
con tinually im prov e our DE result s.
Operational excelle nce is no t somet hing separate from our
business; it is how we must ru n our busin ess to achieve ou r
vision of success.
Using th e OEMS, we effect ive ly integr ate DE obj ect ives, plan s,
processes and behavi or s inl o ou r dail y opera tions and protect
people and t he env iro nment tod ay and in the future.

our vision of success.

Leadership Accountability
leadershi p is the single largest factor for success in DE-leaders est ablish the vision and set objec tives that chal-

lenge t he organization to achieve world-d ass result s. They direct the Manaqement System Process, se tting priorities
and monitori ng progress on plans t hat focus on t he highest-i mpact items. leaders visi bly demonstrate their commitment t hrough personal engagement with t he workforce and showing a conce rn and caring IOf the healt h and
safely of every indiv idual.

Management System Process

A systematic approach used to dr ive progress toward world -class per formance . The Management System Process
(M$P) is linked to t he business planning process and beqin s with defi ning a vision of success and setting obj ecti ves.
Gaps bet ween current per formance and these objecti ves are uncovered during t he assessmen t phase, th en plans
are developed to close the gaps, the plan is implement ed and a review of plan implement at ion and performance
is completed.

OE Expectations
Corporate Expectations lor Operatio nal Excellence are detailed under 13 elemen ts. The OE Expectations are met
through processes and programs put in place by local managemen t. Many of these expect ations are supported by
corpo rate and opera ti ng company standard OE processes.

Leadership Accountability
The single largest factor for success in operatlondl exceuencers leadership. Leaders are accountab le no t only for get tin q res ults. but getting results In th e r ight way and beha ving In accordance wi t h our valu es.

Leaders are expected to establish a vision and set objectives l or performance that challenge th e orqa nlzatlon to
achieve world-class results. Leaders direct th e Manaqemenf System Proc ess to drive improvemen t In OE res ults.
Leaders at every level are a lso expected t o seste- a culture qrounded In operational excellence. By t heir actions,

leaders must send the mesSdQe that operational excellence Is a priority thro ughout their orqan lzatlon s. Through
personal example. they mu st demOIlstra te that zero Incidents of any kind - whet her reldted to safety. health,

enviro nmental, reliability or efficiency - is attainable.

Under t he OEMS. leaders are responsible

and accountable for:

Alignment Around OE Objectives

Leaders est ablish a vision and widely communicate world,
class object ives, metrfcs and targets for t heir unit s. These
are aligned wit h corporate OE Objecti ves and cascaded to all
levels. They ensure t hai th e OEMS is implement ed and pro"

cesses are put in place t o satisfy all OE Expectati ons and th at

Personal Involvement in the

Management System Process
leaders personally direct the Management System
Process for cont inuous OE improve ment and int egrate
operatio nal excellence into business plans.Leaders
pri oritize OE plans to focus on t he highest -impact items
in alignment wit h vision and objec tives. They provide
resources and monit or progr ess on OE plans unl il a
successf ul conclusion is reac hed.

resources, roles, responsibilities and accountabilities are fu lly

aligned throu ghout the organization.
l eaders should:
Establish a vision and set clear, world-class DE ceiec-

uves for their organizatio n.

Personally encourage and participate in benchmar king
OE performance and OE processes with internal and

extemer c rc enee nc ns.

Widely commu nicate the perf or mance objectiv es,
metrt cs and targe ts to every level.
Set objectiv es t o improve leadership behaviors.
Adopt and cascade t he Tenets of Operat ion to the
ent ire wor kfo rce, ensuring that the tenets are incc rporated into decisions and behaviors (See page 16).
Set object ives for OEMS implementation and development of processes t o meet OEMS requirements.

leader s should:
Ensure t hat processes necessary t o meet DE
Expect at ions are ident if ied and assessed f or
design and ettecnveoess.
Ensure that assessed gaps are prioritized based
on ri sk.
Conduct a survey using the l eadership Behavior
Assessment Tool (l BAD and use the lBAT
findi ngs to develop action plans for imp roving
leadership behaviors.
Identify highest-impact items for focu s and
inclusion in t hree-year business plans.
Direct development or impr ovement of processes
to meet OE Expectati ons.
Assign responsibility and direct and monitor th e
implementat ion of DE plan s to their

Building an DE Culture Through

Workforce Engagement
Lea de rs demon strate t hat o perat ion al excell ence is a per son al co re
val ue, an d they show con cern and car ing for t he health and safe ty of
eve ry ind ivid ual. The y are equally co mmitted to e nvir onmental
pr otection and achieving world -cl ass r eli ab ili ty and

eructeocv

l eaders understand and r ole model th e Tenet s of Operation and

Visible Leadership Engagement

and Commitment

behavi or s necessar y to build an OE cult ur e. They r ecog nize and

r ewar d these beh avior s in ot hers. They co nt inuously im pr ove o ur

Leader s visibly dem on st rat e invo lvement an d commitment

OE cul t ure by und er standing the gaps and r emovi ng ba rri ers 10

to improv e OE performance. They are flue nt in the OEMS.

wc rrd -ctess OE per fo rmance.

They understand their r oles. r espOnsibiliti es and accoun tabilit ies as o wner s of operational excellence and seek to cont inua l-

leaders should:

ly improve th eir per sonal and their or ganization's capabilities

Demo nstrat e a per sona l conc er n and caring for the health and

to achieve world-class DE performance.

safety of every individual and pro tedio n of t he environment.

Leaders s hou ld:

expects tha t every j ob and every task can be co mpleted every

Work to ensu re t hat the entire workfor ce understands and

Be uueot in the OEMS.

day withou t inj ury o r incid ent.

rreouenuv visit their operations to reinfor ce OE

Rein force The Chevr on Way values in o pe rational excellence

perfor man ce and t est OEMS effectiveness.

through act ions, beha viors and decisions.

Know the ir operatio ns well enoug h t o identi fy wo rk-

Model OE beha vior s t hat suppo r t th e Tenets o f Operation

place hazards and reinfor ce crit ical OE processes.

and ho ld ot hers accountable to do th e same. Alw ays

Sponsor and participate in cr itical processes necessary

" walk th e talk."

to meet DE Expecta tion s.

Engage the wo r kforce in OE pe rfo rma nce, and empo wer

Act ively foll ow through on incident invest igat ions

them to make OE improvem ents,

to ensu re root causes are determined and mitigat ing

Iden t if y, understand and eli minate barri er s to an OE cu ltu re

acti ons are carr ied o ut.

and improved OE performance.

Activel y engage in impr oveme nt o f their pe rso na l

Ensure every emp loy ee has an OE.per fo rmance agreemen t

and t heir o rga niza t ion 's OE capabili ty.

in th eir pe rf orma nce pla n.

En gage t hird parties to ensure al ignment aro und

Hol d peo ple acco untable fo r OE per formanc e.

OE Expectations _

'0 Thlnqs a LHder Can Do to Build an DC Cultute 5. Sponsor and participate in critical OE
processes: make safety observations,
1. Engagein dialogue with ITW11lbers 01 th(> workforce
(employE'E'S and contractors); inquire about their
work and working conditions. understand and
recognize the value of each individual's contribution
to incidenH rH operations.

2. Positively reinforce sale behaviors on the spot. Act

immediately to mit igate unsafe or environmentally
unsound conditions. Share personal examples of
safety learnings and coservaucns from both on' and
ott-the-job.

participate In a Job Safety Analysis(JSA)

or an incident inwstigalion to determine

root cecses,

6. Set clear, specific, measurable objectives

for operational excellence. Communicate frequently with eu members of t he
workforce on the objectives, measures,
plans and progress. Regularly recognize

8. Conduct field visits, ask questees about

safety, _ironmf'ntal and rf'liability conditions and provide immediate pin'pointed
fHdback (both positive and constructiw).

9. Hold yourself and ethers accountable

for operational excellence pi'r lormance.
Includf' OE per formance in ranking. salary
and job selec tlcns.
10, Set high, specific standards for contin uo

ous improvement of criti cal OE processes.

progress on indicators and achievement

Share lessons learned and seek out and

of results.

adopt precesses that could improve

Management System Process

The Management System Process (MSP) Is it systematic appt'OdCh used to dr ive proqress
toward world-clas s perfo rmance. Thf! M5P Is linked to t he busi ness plannlnq process. Dr ive n by leadership, th e
MSP is used to Inle qrate DE Objec tives, plan s and activities into daily opera tions. The MSP helps t he corporation,
operating companies and un it s establis h DE priorities and plans and It quides the developm ent of measures to
mon itor progress t oward wor ld-class results.

The Management System Process conta ins

fi ve sfe ps:

Assessment

Vision and Objectives

annually to identify gaps in OE proc esses and performance

An DE vision is establ ished, or validated. and specific objectives and measures for success are ident ified and cascaded
to the workf orce.
Vision and Objectives action s:
Develop an OE vision. world-cla ss objec t ives, melrics
and targ ets. These are based on the corporat e objec
uves. benchm ar king data and ot her criti cal business

A comprehen sive OEMS Self Assessment is co mpleted

agains t est ablished Objectives.
The leadership team is engaged in assessments and
participates in prioritization of assessed ga ps.
The hig hest pr iorit y OE pr ocesses are assessed annu ally and
a fu ll assessment of all pro cesses is required at least
every three years.
Assess ment actions:

dri vers.

Assess ri sks and gaps against objectives in:

Set object ives lor OEMS implemen ta tion and t he de-

l eaders hip Accou nt ability.

velo pment of processes to meet OEMS requirement s.

Management System Process.

Cascade OE vision, obj ectives, metrics and targets to

OE Ezpectat lcns and Processes.

all levels of the organization.

facility risk.s and capabi lit y to achieve wend -cress

Adopt and cascade the Tenet s of Operation to

the workforce.

performance.

Wor kfor ce OE cult ure.

Priorit ize assessed qaps based on risk and opportu nity.
Identi fy futu re risks t hat could pr event wor ld-class

The Management System Process

perform ance.

Planning
A t hree-year plan is developed to manage t he pr ioritized
gaps. Plans are incor porated directly into business plans
and accountabilit ies are assigned.

Plann inq action s:

Develop OE memes. ta rcets and action pla ns with
com plelion dat es and milestones and incorporate into
business plans.

Iden tify and all ocate resour ces to successfully

complete t he OE action plans.
Communicate metri cs, targe l s and acho n plans.
Assign accounta bilities and develop necessary
per fo r mance agreement s.

Implementation
Planned act ions are implemented alonq with other business

Achieving World-Class
Performance

plan acti vities. OE netw orks are engaged to share lessons

Success in operational excellence requires discipline

learned and seek out besot pract ices and processes t hat can

in both the planning and executio n of work necessary

be adopted to achieve plan objec tives,

to manage safety, healt h, environment , reliabili ty and

Implementation actions:

efficiency with world -class resun s.

Execute plans alo ng wit h ot her business plan act ivi ties .
Maintain co ntact s with DE networ ks to share lessons
learn ed and to :ieek out best

precnces and

processes

The Manage ment System Process (MSP) is a

syst emat ic approa ch used to drive progress toward

t hat can be adop ted t o achi eve plan objec t ives.

world-clas s pe rfo rman ce, integr at ing operat io nal

Monitor plan progress and DE perfo rmance at least

excellence into business plans. The MSP also pro-

monthl y and adjust plans as necessary.

vides a syst ema tic means to manage and administer

Identify and manage new, unplanned actions not

th e many pr ocesses a unit has in place for opera-

in Cluded in cur rent business pla ns.

t ion al esceueoce. Driven by leadership, t he MSP is

used to establish or validate t he OE visio n and set

Review

wo rld -class objec tives and ta rgets for world -class

An annual review of all OEMS acti vity is conduct ed to evalua te

prio rit ization proc; sses, gaps to achieving world"

proq ress on per forma nce and ident if y necessary adjustmen ts

class results are identified. Plans to close gaps

to plans to achieve world-cl ass result s.

ar e in corpo rated into the t hree- yea r busin ess

Revi ew acti on s:
Review progress against OE plans t o det er mine
whet her t hey are effect ive and pr ogress is on t rack
t o achieve wcrte-ctess performan ce.

perfo rmance. Using risk-based assessment and

plan, im plemented and monito red to a success"

ful co nclusio n. OE pr ocesses necessar y to m eet
OEMS requirements are identified, de velop ed,
im ple men ted and co n t inually i mprov ed. Annu ally,

Evaluate the organizat ion's Management System

overall OE performance and pro gress are r eviewed

Process activi ty for improvemen t.

and necessary plan adj ustments are made .

Identify possible plan adjustments based on emerging

issues and changing business co nditions.

OE Expectations
DE Expectations are organ ized under J3 elements and sp ell out specific requireme nts for the managem ent
of safety, health, environment. r eliability and efficienc y. The expectations are met th rough pro cesses and programs
put in place by local management. In many cases, a single pro cess or program may fulfill the Intent of one or more

expectations. In some cases, one expe ctation may require several processes to be put In place.
Leaders are responsible for ensur ing that processes and program s are established and working effectively to sat isfy
all expectations. Several expectat ions are supported by Chevron standard processes or operat lnq company standard
processes. A current list of Chevron standard processes Is availab le on th e Operational Excell ence website.

Element 1: Security of Personnel and Assets

Provide a secure environment in which business operatio ns
may be successf ully conduct ed.
1.1 A process is in place to actively engage employees in
security awareness and vigilance to the security environment.
1.2 Risk-based security manage ment plans are developed,
implemented and maintained t o address potential secur ity
t hreats to t he business.
1.3 A process is in place to integrate secur ity management
plans wit h related plans for emergency manage ment, business
cont inuit y and inform ation protec t ion.

Element 2: Facilities Oesiqn and

Construction
Design and const r uct facilit ies to prevent injury, ill ness and
incidents and to operat e reliably, efficie ntly and in an erwtronmentall y sound manner.
2.1 The Chevron Project Developm ent and Execut ion
Process (CPDEP) and applicable tools and sub,processes
such as Decision Analysis, OE Roadmap for Project s and
Operations Assurance, are used to incorp orate OEMS
requirem ents in the design and const r uctio n of all new
and modified facilit ies.
2.2 Consider reli ability, operability, maintainability and
total life' cycle cost t rece-ou s in making incremental capital
invest ment decisions. This t radeoff analysis should use th e
cr it eria found in the Corporate Invest ment Analysis Manual.
2.3 A process is in place t o comprehensively assess and
evaluate safety, health and environment al risks; potential
business and community impacts; and to develop associated
mitigation plans for new and modified facilit ies. Assessments
conducted in early project phases shall be re-evaluated
duri ng f inal detailed design to determine whet her mitigation
plans have been implement ed. The HES Risk Management
Cor porat e Standard Process and t he Environm enta l. Social
and Healt h Impact Assessment (ES HIA) Corporate Standard
Process support thi s expectation.
2.4 Conduct pre-startup reviews on all new, modifi ed or
__ . . , . .. _, ., .. . _ .. , _ _ , " < '

,. _

< _ _ < ..

.. _ u

. .<

Element 3: Safe Operations

Operat e and maintain facilit ies to pr event injuries , illness and incidents.
3.1 Use the HES Risk Management Corporate Standard Process t o per iodically
ident if y, assess and mi tigat e t he saretv and healt h risks related to faci lit y
operations and mod ifi cati on s.

The Process Approach

Well designed and euecuvetv implemented
processes are necessary to deliver world-class
results in operat ional excellence. f ollowing a

3.2 A comprehensive safety program is in place for each locati on. Core

process approach, each unit ident ifi es, develops,

elements of the pr ogr am shall include:

Wri tten sale work practi ces. Sal e wor k pr acti ces may include: permi t to

implements and cont inually improves OE Pro-

work, hot wor k, co nf ined space entry, equipment isolati on (lockout!

taqout), opening equipment, excavation, worki ng at heights, elect ri cal

cessesas necessary to meet t he requirements

of t he OEMS.

wor k, simultaneous operat ions (SIMOPS), bypassing cri tic al prote ct ion s,

f or processesto be ettect ive, they must be

lining and rig ging, and ot her applicable practi ces identi f ied th rou gh r isk

documented and incorporate in their design

assessm ent of local operat ions.

A wr itten j ob or task safety analysis process (JSA) to identi fy, elim inate

and operatio n the following f ive component

or miti gate potent ial hazard s pri or to conduct ing work.

Stop work authorit y.
A repetit ive stress inj ury (RSI) pr event ion pr ocess.
A comprehensive road safety management process to mi nimize risk and
pr omote mot or vehicle sale ty.
A hazardo us mat eri als comm unication (HAZCOM) process to manage and

model:
Purpose, Scope and Object ives defines the processes' boundaries and
interlaces wit h other processes along
with purpose and expected results.
Procedures - describes t he steps

com municate hazard s.

A behav ior-based safety process to provide for observ at ion and co mmen-

necessary to be perf ormed and how

t hey are to be accomplished.
Resources, Roles and Responsibilit ies -

t ar y on worker behaviors, t racking and anal ysis 01observ at ions, and a

proce ss for ide nt ify ing and implementi ng act ions for impr ovement.

defin es who is responsible lor doing

t he work, and lor administering and

3.3 An occupational health pr ogram is in place for each locati on. Core eleme nt s
of t he prog ram shall include:
Occupat ional hygiene and medical surve illa nce prog rams appropriate
for t he location t hat in clude pr ocedures for ident ificat ion and cont ro l
of workplace exposures, includi ng infect ious di sease, and ongoing

maintaining the process (Process

Ownership).
Measurement and Verificat ion ~
confirms that the object ives and
results are being achieved and t hat

monito ring and surv eilla nce of affe ct ed personne l.

t he crit ical components of t he process

A process to det erm ine whether employees are safely able t o perfo rm
th e essenti al physical, psychological and cognitive req uirement s of t heir

are adequat ely designed and are being

jo b wit ho ut risk to self. ot hers or t he enviro nment and are not impaired
by dru gs, alcohol or di sabling medical condit ions.
Healt h educat ion programs to reinforce personal and facility hygiene to
co ntro l wo rkplace exposur e and transmission of infect ious diseases.

executed.
Cont inual Improvement - utilize s
measurement and verificat ion results
and other input to evaluate how to
improve t he process and ensures
act ions are taken to improve process

3,4 A process is in place to develop and mainta in operat ing and maintenance

design and effective ness.

procedures, process safety info rmati on. The pr ocess shall ensure t hat document s, procedu res, records and ot her infor mat ion are current and accessib le.
Procedu res for document control including conf ident ialit y and reten ti on shall
also be inclu ded.

The design and rigor of each process should

be based on the risks associated with t he
unit' s unique operatio ns. A complex operati on
wit h Ta ny possible hazards or an operatio n

3.5 A t raining proqram is in place to ensure th at employee s have the skills and

in a sensitiv e environment might have a more

knowledge to perform their jo bs compete nt ly, in an inciden t -f ree manner and

rigorous process in place t han a less complex

in co mpliance wit h atl applica ble laws, regulatio ns, company poli cies

operation in anoth er locati on.

and requi rement s.

The program shalt include:

Corporat e OE Reviews include an assessment of bol h the design and etrecuveness of

DE Expectations
' . . "/ 'iJ
Element 4: Manaqement of Chanqe

,.-

Manage both pe rmanent and temporary changes to prevent

/J

incidents.

4.1 A process is in place to manage changes to facilities,

5.6 A pro cess is in place to ident ify and resolve ot her

opera tions, products or the organiza tio n. The manageme nt of

repet it ive or recurring failures, t o imp rove reliability and

change process shaH add ress:

Both perma nent and temporary changes.

reduce maint enance costs.

Aut hority for approvi ng cha nges.

5.7 A pr ocess is in place t o manage well reliability.

Evaluation of healt h and safety hazards, environmental

Process shall include:

Identif icat ion of cr itica l wells or well types. Possible

imp act s and mitigati on.

Communica tio n of t he change.
Training.

Element 5: Reliability and Efficiency

Reliability
Operate and main tain wells and facilities to sustai n mechanical
integrity and pr event incident s.
5.1 A process (Reliability Opport unity Identificati on [ROI] or ot her
applica ble pr ocess) is in place to ident ify and re sol ve th e signif i-

failur e modes and effects are analyzed and steps are

t aken to pr event failures or mitigate failur e effects
for cr itical wells or well ty pes.
St andardized operatio n and survei llance duties for
crit ical wells or well types.
Use of survei llance, perf ormance data and analysis
to assess current well perf orman ce against expected
well pot entia l to ident ify and evaluat e opport unit ies
for improvement.
Condit ion monitor ing t o ensure mechanical inteqrity

and/o r human reliability opport unit ies that cause significant inci -

of all crit ical wells or well types.

Proact ive maint enance programs utili zing available

dents or perf orm ance gaps. Failure analysis is used to dete rmine

surveillance and condit ion monit oring result s to cor-

causes of failures and actio ns are taken to resolve t hese causes.

rect abnormal condit ions.

Priorit izatio n, planning and scheduling of well work.

cant few faci lity and business uni t-wi de equipment work pro cess

5.2 A process is in place to ident if y cri tical st r uct ures, equip'

ment and work processes. Possible failur e modes and effec ts are

Efficien cy

analyzed and ste ps are taken t o prevent th e failure or mitigate

Maximi ze effi ciency of operat ions and conserve

t he effects.

natu ral resources.

5.3 A process is in place to establish and use stan dardized equip-

5.8 A process is in place to optimize operational processes

and improve profitability thr ough the eff icient use of people,

ment operatio n and surv eillance duties for all crit ical st ructu res,
equipment and prot ection devices t o ensure th ey operat e proper ly.

time and assets.

5.4 A process is in place for condit ion monitoring (or ti me-based

inspecti on and testi ng) to monitor and ensure mechanical integrit y

5.9 A process is in place to tra ck and improve energy

of all cri tical st ruct ures, equipment and prot ecti on device s.

gases) per unit of pr oducti on.

5.5 A process is in place t o prioritize, plan, schedule and complete

5.10 A pr ocess is in place to maintain inventor ies

necessary maintenance for all st ruct ures, equipment and

pro tective devices. Process shall include;

and plans for conserv at ion of natural resources and

fo r reducing use of raw materials by each facilit y and

Proactive maint enance of equipment and pr otecti on devices th roug h use of surv eillance and conditio n mo nito ring
results.

eff iciency while redu cing emissions (including greenhouse

each pr ocess.

Element 6: ThirdParty Services

Element 8: Product Stewardship

Systematically impr ove Third Part y Service performanc e

t hrough confor mance to Operational Excellence.

Manage potenti al health , enviro nmental. safety (HES)and integrity

r isks of our products throughout a product 's life cycle.

6.1 A process is in place to ensure that thi rd-party service

suppliers perf orm to safety. healt h, erwironrnent and reliability
requirements consistent with t hose requ ired of company
employees when working on company property and when
prov iding services for the company off company property in
operational cont rol.

8.1 A process is in place to mai ntain and communica te information

on potential hazards and exposures from products from concept ion
and development through acquisiti o n. manufacture. distribution,
storage, use, recycling , potential release and disposal.

6.2 A Cont racto r satetv Management (CSM) process is in

place th at clearly esta blishes accoun tabili tie s to include:
Ident ificat ion of company cont ract "ow ners" (or management sponsors) accountable for each cont ract.
Activ e engagement of cont ractors in implementi ng and
improving the CSM program.
A cont ractor quali fi cation and selection process which
addresses safet y performance.
Pre-jo b work reviews and act ions during work to verify
scope of work. reinforce expectations and monitor
compliance to requirement s.
Periodic evalua tion of cont ract or safety perfor mance
and assessment of t he CSM prog ram.

Element 7: Environmental Stewardship

St rive to cont inually imp rove environmental performance and
reduce impacts fr om our c pereuc ns.
7.1 A process is in place to inventory all emissions. releases
and wastes and to identify nat ural resour ces impacted by
operat ions. (Nat ural resources include air. surface weter;
ground water, soil and geologic resources. and local biological
diversity.) The invent or y should include possible sources of
unplanned releases and sources of poten tial contamination
caused by past practi ces.
7.2 Processes are in place to identify. assess. mit igate and
manage signif icant potential risks and impacts to human
health and the environment (incl Uding natural resources)
associated wit h operations, emi ssions, releases and wastes.
The HES Risk Management Corpora te Standard Process and
the Environmental, Social and Health Impact Assessment
(ESHIA) Corporate Sta ndard Process support t his expectation.
7.3 Use the H[S Property Transfer Cor porate Standard
Process to ident ify and manage potential safety. health or
envir onmenta l liabilities before tran saction. The process
shall include:
Assessment 01risk for identified liabilities.
Management of ri sks based on current and likel y f utu re

8 .2 A process is in place to ident ify. assess and manage signif icant

HES and integrity risks across t he life cycle (manufacturing. storage.
dist ributi on. transpor tat ion. use. recycling, potent ial release and
disposal) of each exist ing product , by-product. int er mediate, or
process st ream. Process should ensure peri od ic re-evaluati on
as appropriate.
8 .3 A process is in place to identify, assess and manage HES and
prod uct integrity impacts of manufacturing . dist ributi on. storage,
use. recycling. potential release and disposal when developing.
for mulat ing or altering products. by-products. and pro cess intermediates. Assessment should be conduct ed earl y in each product's
or project's development and for any changes in t he produ ct life
cycle t hat may pote ntially alt er the product.
8 .4 A process is in place to identi ty. assess and manage risks posed
t hrou gh sto rage, handling. t ransport at ion and distr ibut ion of company products. materi als and ot her commercial goods. Implement
appropriate produ ct quality cont rol processes and product integ rity
r isk-reduct ion measures.
8.5 Promot e produc t stewardship practices wit h th ird parti es.
inclUding suppliers. dist ribu tor s. t ranspor ters. cust omers and other
direct produ ct recipients.

DE Expectations
Element 9: Incident Investigation

Element 11: Emergency Management

Investigate and ident ify roo l c auses of incidents to red uce o r

Preven ti o n is th e fi r st priorit y. but be pr epared t o

eliminate syste mic causes and t o prevent future incid ent s.

respond immediately and effec tively to all eme rgencies

involving Chevro n wh oll y-owned or ope rated assets. For

9.1 A process is in place to repor t, record and invest igate incidents

company product s o r interests such as commo n carrier s.

and near mi sses and correct an y defi cien ci es fo und. Thi s pr ocess

c har ter ed vessels a nd fa cilities o perated by other s, be

sha ll incl ude:

prepared to m onit or th e respon se and , if warrante d.

Management r oles and respon sibili ti es in incide nt

tak e appro priate act ion s.

investigat ion .
Roo t-cau se ana lysis fo r sig nificant events and near mi sses.

11.1 Maintain a pro cedure co nsiste nt wi t h corpo rat e

Ann ual evaluat ion 01 incid ent caus e Irends to determine

guidelin es t o ensure promp t not ifi cati on of man ag e-

whe re improv ements in syste ms, pr ocesses, practi ces o r

ment of significant health. e nviro nme ntal, and safety

pr ocedures are warr anted.

inci de nts.

Sharing of r eleva nt lessons learn ed.

Proced ures for foll ow -up and clos u re of ac t io ns t aken t o

11.2 Maintain an emergency respon se pl an th at

resolve def iciencies.

describes how emergencies will be managed a nd with

w hat resou r ces. Plan s sho u ld add ress all cr edible and

Element 10: Community Awareness and Outreach

sig nific ant ri sks identified by si te-speci fic risk and

Reach o ut t o the co mmunity and engage in ope n dial ogue

impact assessments.

to bu ild t rust.
11.3 Emergency r espo nse plans shall be:
10.1 Foster o ngo ing two -way communica t io n with employee s,

Documen ted in app ropriat e detail.

con t ractor s, reg ulator y aut ho riti es and communit ies to add r ess

Integrat ed with r eleva nt bu siness cont inuity and

pot ential security, safe ty, health, enviro nmenta l and ot her concerns

crisis ma nagement pla ns.

rel ated to ope ration s. facilities, and products.

Reinforced through esta bli shment of a training

pr ogram and an annual exercise pr ogram to

10.2 A pro cess is in place to fami liarize intere sted parties wit h th e

tr ain j ne emer gency r espo nse team and to test

facility, it s ope rat io ns and produ ct s. as well as effo r ts t o pro tect

the plan .
Readi ly available t o a pprop riate o n-site

safety, healt h and the envi r onment.

personn e1.
Comm unicat ed to empl oyees. on -site
cont racto rs. j oint-ven ture par tne r s. and
appro pri ate government agenci es and
commun ity gr oup s.
Reviewed and. wh ere necessary, r evised - in
par t icular. aft er th e occurre nce o f accidents or
emergency sit uat ions.
11.4 Develop and imple ment a busines s cont inu ity plan.
in accordan ce wit h th e Busine ss Co nt in uity Plan ning
Corpo rate Sta ndar d Pro cess. that addresses cont in uit y

Element 12: Compliance Assurance

Verify conformance with company policy and government
regu lations. Ensure that employees and cont racto rs understand
the ir OE-relat ed responsibilit ies.
12.1 A process is in place t o:
Ident ify and record all applicable laws, regula tions,
compliance requir ements and OE-relat ed policies.
Assure th at all employees and cont ractors understand and
comply with ident ified requiremen ts.
Develop, prior itize and implement programs of cont rol.
12.2 A self-audit process is in place to verify compliance wit h all
o r-reret ec company poli cies and st andards and with the spirit
and lett er of all applicable laws and regulations, regardless 01t he
degree 01enforcement.
12.3 A process is in place that encourages employees and contr actors to f reely report existing or pot ent ial violat ions of law or
company policy. without l ear of retribut ion or any adverse company
act ion because 01his or her report. Processes must include an
appropria te and t imely investi gation t o address the report. Allow "
ance must be made for anonymous report ing.
12.4 A process is in place to identi fy and repor t significant noncompliance issues and root causesto management in a timely manner
and tr ack corr ect ive actio ns to closure.

Element 13: Leqisfative and Regulatory Advocacy

Wor k et hically and constructively to influence proposed laws and
regUlat ions. and debate on emerging issues.
13.1 A process is in place t o ident ify, track, and comment on proposed legislati on. regulati ons. and emerging policy issues.

OEMS Implementation
Everyone has a role to play in achieving success in operational excellence.
Regardless of role - mechanic, manager. office worker or operato r - every one contrib utes to succes s In operat ional exce nence. As we car ry out our roles. each of us Is responsible for conducting ourselves according to the
values expressed In The Chevron Way. By understa nding our respective role and the behaviors necessar y for
success. we can build and sustain a cultur e for operatio nal excellence. We can accelerate our proqress throu gh
proact ive sharing and adopt/nq of effective processes and practice s.

Who

What

lNders, Le.ct.Bhip

Alig n around objectiws.

ream,lIne Managers

mrec t thO? MSP.

oe rrcostrete 1ead<?l'!ihip
E!f'IgaQ(>lTl(>l\1 and oommil/Tl('f1t
Build an DE cul turO?

OE Cha mp ion

Heillith. Environment,

Safety. Rellabllltv
and Eff iciency teems
and $ubje<t m.ttK

eJtperts

Supportleaders, teece rs fnp team

and line meneeement in OEMS
imple men tation and o peratio n.

seeoees

Assist
in establishiog and
deployiog functiOnal standards.
Provide sobject mailer eecertrse.
Support unit' s dewlopment,
implemE'nlatiOnand improve-

How
Esl ablish and communicate cIO?,'Ir visiOn and objKIi~s for success.
lmplement OEMS in un it
Be accco ntame and hold ctners accountable l or DE performance.
Part iCipate in and ensu re others lo llow OE precesses,
Role model and 10110... t he Tenets 01ccerauon.
Part icipate in assessment a nd priori tization of OE Qaps.
Help esteons n OEMS wit hin eecn operahnq unit.
Coach leaders , teeoers fup teem and ot her line rneneqement in OE.
Help establi sh OE Processes. thO?ir prioritization, and novernance.
Coordina te tnteqrenon of DE plans Into business plan and assist in
monitonnq and rollow-up.
Coordinate local OEMS Self Assessment s.
Follow tne t enets of Operation.
Provide HES and rO?liability sccocette linO? manag eflWfl t.
Suppor t OEMS implementa tion ettcrt th ro uQh f uncti onal O?ljllHtise.
Plan and implement subject maUer. audits and report s.
ProvidO? tect mtcet su pport f or HES and reliability improvements.
Follow tne T_ts of Operation.

mentdDE~

OE Procen Sponsors

OE Process Advlso"

ProvidO? rescc rces and support

to ensure success of a specific
DE precess.

Serve as en advocate of t he proc ess to ensure t hat t he precess is

accor ded t he appropr iate priority and 1"@C00jY<?s f undinQ.personne l
and other resources,
En sure that process et recnveness and erficiency are meescreo and
verified at least annually.
Be accoun tabl e f or prc qres 's on the Contln c etimprovement Plan.
Coordin ate wit h other OE Process Sponsors and lin k wit h th e
business oren.

Provide subjec t me tte r excer use

for a specutc OE proc ess.

Coordillato? and 100ad efforts reQardill Q t he process .

rnsc re t hat th e OE process, eocu meotauce arid records are kept
current.
Coordin a te o r support proce ss measurement and vermce ucn.
Conduc t per lormance re port i lll;l and t rend analysis.
Develop and implem ent the Continuallmproyement Plan.
Ma int ain contact wil h:
It Process Sponsor.
It Other precess Advi sors.
It Subject met ter expert s.
It End users.

Corporate OE Review Process

The Corpo rat e DE Review Proc ess plays an integral part in OEMS implementation. The

OE Rating Definitions

process pro vid es independen t feedback to operations on good practices and gaps in DE
Good Rati ng
OE Processres) reviewed provide
a high degree of assurance 01
co mpli ance with DE requirements.
Identified weaknesses, if any, are
relat ively m inor.

pr ocesses and acti vities. It also updates executive management on the stat us 01OEMS
im plement at ion throughout the corporat ion. OE Reviews provide an excellent learning
op port unity t o accelerate the und erstandi ng and performance of th e OEMS within units.
The DE Revie w Process has two separate but related programs - D E Reviews and DE
Fo cused Reviews. Both programs provide an oppor tu nity to share successful practices and
lesson s lear ned .

OE Reviews
DE Reviews are designed to assess an organizat ion's ability 10 meet Chevro n's requi rem ent s for
opera tio nal excell ence including l eade rship Accountability, Management System Pro cess and

Sat is fac to ry Rating

DE Process(es) reviewed prov ide
reasonable assurance of compliance with DE requirements.
Identified weaknesses requ ire
management attention to enhance
overall eff ecti veness.

OE Expectati ons . Whil e these req uirements fo r operati onal exce llence remain the same acro ss
less-Than-Satis factory Rating
DE crc cessresj revie wed do not
pr ovide reas onable assuran ce 01
comp lian ce Wit h DE requ irem ents.
Identified weaknesses represen t
a depa r ture from the se requ irements and mu st be promptl y
correc ted.

the corporation, indi vidual units may address t hem differently. For example, different processes
may be put in pla ce to mee t a given OE Expect ati on based upon the unique operat in g envir onment. OE Reviews assess and rate bo th the design and effect iveness of these pro cesses in
meeting OE requirements. The ralings utiliZed ar e Good, Satis facto ry or less-Than-Satisfact ory.

OE Focused Reviews
c t Focused Reviews are intended t o co mpliment the OE Reviews.OE Focused Reviews are mo st
succinctty descr ibed as fit -for -purpose and may foll ow tw o primary co urses. Reporting units
may request a Focused Review to conduct an in-depth assessme nt of one or more OE
processes. Ot her Focused Revie ws will assess a unit's progress in clOSing gaps identified in th e
previous OE Review and assist the unit in addressing remain ing gaps. They will typically be
t arqe ted at the unit level, bu t may also be based on a spec ific t opi c or acr oss unit boundaries.

Parameter
Scope (content)

APplicability .

OE Review

Ar eas of Concern
Signif icant weakne sses in spec ific
systems, sub-processes or prac ti ces th at represent a d eparture
from DE requirements and mu st
be promp tl y correct ed.

OE Focused Review

Assesses an organization's ability to moet till' requirements 01

operatlonat exceuence. Ihls includes tile design and effectiveness
of an organization's processes for meeting til e OEMS requirements
and how thl'Y are tnteqretec into tile business. Provides limited
verif ication of specific compliance.

Reporting unit request to assess one or

more OE processes.

Organization based (typically reporting unit level); all Chevron

reporting units .

Usually reportmq unit-based; may be crossorganizational depending on subject matter.

Assist unit in addressingaction plan closure.

Tenets of Operation
To achieve and sustain our objectives, we must develop a culture where everyone beli eves all
incidents and operating disruptions are preventable and that "zero incid ents" ;s possible.
Tenets are a code of conduct used by employees and contractors as a tool to guide dail y
decisions. Leaders pla y an imp ortant rol e in reinforci ng behavi ors consistent with th e tenets.
The Tenet s of Operation are based on two key principles:

1. Do It safely or not at all.

2. Ther e Is always time to do It riqht.

Each organization wilt deploy the Tenets of Operation to pro vid e a foundation for an
operational excelle nce cul ture at Chevron.

Always:
Operat e within design and environmental limits.

Comply with all appli cable rules and regulations.

Operate in a safe and controlled condit ion.

Address abnormal condit ions.

Ensure safety devices are in place and fun ctioning.

Foll ow written procedures f or high -ri sk or unusual

sit uat ions.

Foll ow safe wor k practices and procedures .

Meet or exceed cu stomer's requir ements.

Involve the right people in decision s that affect

procedures and equipment.

Maintain integrity of dedicated syst ems.

Questions a leader can ask to ensure that the tenets are Incorporated into decisions and behaviors:
Do we know th e limits of our facil ity or plant and equipment ?

Is this task'going to compromise a safety system

Could this activity cause too much pressure, temperature , weight,

or process?

flow. vibration or other abnormal condit ion that exceeds the design

Are we meet ing or exceeding the requir ements lor

of the equipment?

thi s activity ?

Will the task result in operating in an abnormal or alarm condition?

Are we deviating from the normal process or expected

Are safety devices in place for th e work about t o be performed?

conditions?

Are they wor king?

Are we planning to follow th e safe work pract ice or

Do we understand the safety procedures or safe work practices

standard operating procedures for t his work?

required for the task we are about to perform?

Do we need t o foll ow a management of change

Do we have a permit and appropr iate job safety or hazard

procedure for th is work ?

assessment for the work?

Does the work have adequate supervision?

Do we underst and th e r isks associated with not following

Have we communicated with the appropriate people

thO n."rOli " .",?

Glossary
Managl:'ment Syste m Process

DE Obj ectives

A systemat ic appro ach used to drive progr ess toward

A descri ption 01D E per formance businesses are

world-cla ss perfor mance. The Management System

st riv ing to achieve. The corporat io n has esta blish ed

Process is link ed to th e business planning: pr ocess.

five Objec tives (sho wn on page 1) that illust rate world class per for mance. Indiv idual units should align th eir

Opera tional Excelle nce (DE)

objectives wit h the cc rcc retrc n's.

The syst ematic managem ent of safety, heal th.

envi ro nment, reliability and efficiency to achie ve

DE Processes

wend-cre ss per formance.

Interre lat ed or interacting act ivi ties undertaken to

DE Expec tations

Each DE Process has fi ve components:

meet DE Expect ati ons.

Enter pr ise-wide req uirements for site -speci fic

Pur pose, SCopeand Object ives

processes to control cer tain risks inherent to

Procedures

our business .

Resources. Roles and Responsibi lities

Measur ement and Ver ification

Operati onal Excellence Management System

Conti nual Improvement

(OEMS)

A standard approach for achieving wor ld-class per-

Standard Processes

formance in safety. health, environment. reliabil it y

Speci fic pr ocess. procedu re or performance requ ir e-

and effici ency. The OEMS consists or three parts:

ments applicable to all units ente rprise-wide. OE

leadership Accountabili ty
Manaq emenl Syst em Process

Sta ndard Processes may also be specific to a sector

or an oper ati ng company.

,r

--------~------- ~ ~ ~

Operational Excellence
Opera tiona l Excellence Is the systematic management of
safety, health , enviro nment, reli ability and efficie ncy to achieve
wor ld-cla ss per forma nce.

DE: Vision
To be recognized and admi red by indust ry and the commu ni ti es
in which we operate as wor ld -class in safet y. heal th, environment ,

reliabili ty and eff iciency.

DE: Objectives
Achieve an injury-f ree work place.
Promot e a healt hy workplace and mit ig ate signif icant
health ri sks.
Eliminate spills and enviro nment al incidents. Iden ti fy and
mit iga te key environmen tal risks.
Operate inciden t-fre e wi t h industry-leading asset reliability.
Maxim ize the eff icient use of resour ces and asset s.

Che~

b1