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Stork Technical Services

Organisational integrity
Module 5: AM processes implementation and
execution Asset Life Cycle Activities
Chemical

Power

Oil & Gas

Jos Van der Aelst


Principal Consultant Asset Management
Jos.vanderaelst@stork.com
1 Organisational integrity 0032 499 98 61 00
Organisational Integrity
Organisational integrity can be described as knowing what are the
right things to do and doing the right things.

Organisational integrity is intrinsically linked to company culture,


human factors and processes and practices .

Plant Processes /
Systems
(asset
integrity

People
(culture &
behavior)

2 Organisational integrity
Human / organisational context
Narrow Broad
Scope & focus of
organisational
Human Acting according to a The alignment integrity
personal set of values, between what one
integrity beliefs and principals does and one says in oil & gas

Integrated, consistent
No corruption approaches and
Organisational Code of conduct
behaviours driven Business context
knowing what are
integrity Compliance the right things to do
management and doing the right Narrow Broad
things

Risk related to the


operation and All business risks (e.g.
Risk management of oil & financial, commercial,
context gas ASSETS and competitors, )
facilities
The scope & focus

Asset delivery
AM goals Safety, health,
output
environmental Expenditures / costs
Innovations
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Organisational Integrity - Modules
Asset Management (AM)
Module 1 Module 2

Introduction AM &
Risk Management
Organisational integrity

Module 4
Organisational capabilities
Module 3

AM Policy & AM
AM Processes AM People AM Means
Strategy Organisation

Module 5

Asset Activity Cycle

Design,
Concept & Operate &
purchase & Delivery Dismantling
Business case Maintain
construction

4 Organisational integrity
Module 5: AM Processes Implementation and
execution Asset Life Cycle Activities
Organisational integrity throughout the Asset Life Cycle
Concept & Business case
Design, purchase and construction
Delivery / commissioning
Operate & Maintain
Improve & Modify
Dismantling
Information integrity
Organisational integrity review processes

Responsibilities and authorities in organisational structure

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AM system & Asset Life Cycle activities
Specific integrity attention points / ALC
Concept & Design, Operations & Improving / Decommissioni
Business case purchase, Maintenance modification ng/ dismantle
construction &
commissioning

Governance

Riks Mngt

Policy &
strategy
AM concept

AM plans

Service
providing
AM
Performances
AM Analyis &
improvements
Organisation

People
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AM Means
Concept & Design, Operations & Improving / Decommissioni
Business case purchase, Maintenance modification ng/ dismantle
construction &
commissioning

Overall concept & business case in function of:


Derived from corporate strategy / stakeholders Investment
Market position strategy Profit
Customer value strategy
Product strategy
Capacity strategy
Financial strategy, environmental strategy,
Derived from Asset Management strategy Risk profil
Optimisation strategy
integrity/reliability/cost/
End of life or life time extension strategy

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Concept & Design, Operations & Improving / Decommissioni
Business case purchase, Maintenance modification ng/ dismantle
construction &
commissioning

Design in function of (life time approach requirements):


Supply chain requirements (customer view)
capacity / flexibility / delivery
Integrity requirements
Safety, Security, Health & environmental
Reliability requirements
Output, Input losses Define for each
element performance
Operations & maintenance requirements
standards
Operability, maintainability, testability comparison of options
Decommissioning requirements
Life time requirements
Expenditures
Life Cycle Cost approach Total Cost of Ownership
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Concept & Design, Operations & Improving / Decommissioni
Business case purchase, Maintenance modification ng/ dismantle
construction &
commissioning

Asset
Concept &
Life Cycle Cost Business Case
activity
cycle
Design, purchase,
construction

Supply chain cycle


Delivery
+
Manufacture
Inbound Outbound
Suppliers Safety Customer
logistics Environmental
Operate logistics
& maintain

Dismantling

9 Organisational integrity
Concept & Design, Operations & Improving / Decommissioni
Business case purchase, Maintenance modification ng/ dismantle
construction &
commissioning

Integrate in design (engineering concept) the intrinsic (build in)


of:
Reliability /
- Integrity Integrity

Design Reliability/ Integrity


- Reliability Hand over
Reliability /

- Maintainability integrity

- Operability
Redesign

- Testability making assembly Installation


parts parts
- Rebuild capability / flexibility

- Energy costs / consumption

- Life cycle

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Concept & Design, Operations & Improving / Decommissioni
Business case purchase, Maintenance modification ng/ dismantle
construction &
commissioning

Integrity requirements
Safety, Security, Health & environmental

Set performance standards for the main asset and organisational integrity
barriers
Perform integrity studies in design (HAZID, HAZOP)
Include in the design phase already the required conditions for the
organisational integrity barriers and implement & install these already before
the phase of operate & maintain
11 Organisational integrity
Concept & Design, Operations & Improving / Decommissioni
Business case purchase, Maintenance modification ng/ dismantle
construction &
commissioning

Measurements helping organisational integrity in the operate and


maintain phase
Simplicity
Normalisation and standardisation
Accessibility
Possibility to remove (demountable)
Preventing human errors
Foreseeing the possibility to determine conditions
Manuals
Environmental conditions

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Example of preparation the maintenance
function during the design phase
Concept & Design, purchase, construction & Operations & Improving / Disman
Business case commissioning Maintenance modification tle

13 Organisational integrity
Concept & Design, Operations & Improving / Decommissioni
Business case purchase, Maintenance modification ng/ dismantle
construction &
commissioning

All the asset and organisational integrity barriers should be


implemented, maintained & monitored

Asset related
Inspections, controls, verifications, testing of assets and barriers
Maintenance repairs, renewals
Operations within operation window
Organisational related
Policy & strategy e.g. monitoring & review programs
Processes e.g. work clearance management, information integrity
Organisation e.g. organisational fit check
People e.g. competence, awareness, leadership, ..
Means e.g. integrity facilities check
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Concept & Design, Operations & Improving / Decommissioni
Business case purchase, Maintenance modification ng/ dismantle
construction &
commissioning

Assets and the way of operation must be continually improved !!!

But it has to be a managed process including the assessment and


management of all integrity related risks
Management of Change process
Operational window changes
Product / process changes
Asset modifications
Maintenance / operations modifications (e.g. change preventive
program)
Changes in technology or systems
Changes in standards,

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Concept & Design, Operations & Improving / Decommissioni
Business case purchase, Maintenance modification ng/ dismantle
construction &
commissioning

But also changes related to the whole AM system (organisational


integrity);

Revised organisational structure, roles and responsibilities

Revised AM-strategy, objectives or plans

Revised processes or procedures for AM-activities

Introduction of new people

Introduction of new contractors or suppliers

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Concept & Design, Operations & Improving / Decommissioni
Business case purchase, Maintenance modification ng/ dismantle
construction &
commissioning

The asset and organisational integrity has to be guaranteed during


and after the dismantling of the Assets

The normal integrity barriers may be eliminated or changed


Asset integrity dismantling barriers (e.g. fire detections)
Organisational integrity
Other processes e.g. work order management
Other organisation e.g. subcontractors
Other people e.g. other skills or experience
Other means e.g. dismantling devices
A complete risk assessment and management plan needs to be in
place (other hazards, other barriers)

17 Organisational integrity
Module 5: AM Processes Implementation and
execution Asset Life Cycle Activities
Organisational integrity throughout the Asset Life Cycle
Concept & Business case
Design, purchase and construction
Delivery / commissioning
Operate & Maintain
Improve & Modify
Dismantling
Information integrity
Organisational integrity review processes

Responsibilities and authorities in organisational structure

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Information integrity
The integrity of the information is crucial in order to assure asset
and organisational integrity !!!
Integrate data and documentation requirements in Management of
Change !!!
Data and documentation are basis for:
Decision making processes Asset register
service delivery functions
Working safely physical properties
technical data
Resolving problems
safety and integrity data
Learning and training, key operational data
maintenance data
Information must be: performance records
financial information
Complete
Up to date
Accessible
19 Organisational integrity
Module 5: AM Processes Implementation and
execution Asset Life Cycle Activities
Organisational integrity throughout the Asset Life Cycle
Concept & Business case
Design, purchase and construction
Delivery / commissioning
Operate & Maintain
Improve & Modify
Dismantling
Information integrity
Organisational integrity review processes

Responsibilities and authorities in organisational structure

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Organisational integrity review processes
(AM) Integrity performance
Key Performance Indicators (e.g. staff competence)
Condition monitoring (e.g. always use of right procedures)
Integrity barriers verifications (e.g. test the contingency procedures)
Audits (e.g. identifying areas for improvement)
Analysis & improvements
Improvement loops
Failure, incidents, non conformity and compliance analysis
Return of experience / lessons learned
Benchmarking
Information publishing
Management review
Check
21 Organisational integrity
Module 5: AM Processes Implementation and
execution Asset Life Cycle Activities
Organisational integrity throughout the Asset Life Cycle
Concept & Business case
Design, purchase and construction
Delivery / commissioning
Operate & Maintain
Improve & Modify
Dismantling
Information integrity
Organisational integrity review processes

Responsibilities and authorities in organisational structure

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Responsibilities and authorities in
organisational structure
The core of organizing: division and allocation of tasks, responsibilities &
authorisations and the way of gearing the tasks to one another
(coordinating the tasks)
Do-task
Managerial task (manage, control, governance)

The organisational structure must guarantee that;


Responsibilities and authorities related to organisational integrity
requirements are clear
Commitment and personal accountability for integrity is embedded in
structure
Every one is actively involved in the integrity process

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Responsibility &
accountability Role
set of tasks (functional description) relating
to one step in the business process
Position
combination of roles executed by one person
Organisational structure
how positions relate to each other
Staffing
assignment of people to positions / roles (in
case more than one person is needed for
capacity need of the role
Communication
Exchange of information = absolute
necessity to get a working organisation

R Responsible (responsible for obtaining the agreed result)


A Accountable (person to whom R must give justification)
S Support (actively support R)
C Consult (R has to consult C before taking a decision)
I Inform (I must be informed)

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Integrity in organisation
Complete coverage of organisational integrity
All integrity processes and activities needs to be linked to a position
with the right authorities and responsibilities
The number of staff must be sufficient to execute the processes and
activities
The integrity information and improvement chain must be
organised
Improvement loops
Third party service needs to be involved in the organisational
integrity
And

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last but not least another requirement for
the integrity of the organisation
The human integrity is influencing the organisational integrity and
vice versa

Casting of staff (right staff on the right place)


Evaluations & appraisals
Training, awareness,

Take care of wear out of the organisation


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Organisational integrity in oil & gas

Oil & gas operators are facing a complex portfolio of risks related to
the operations and management of their assets and facilities.

They are committed to deliver excellent safety, health &


environmental performance, while being profitable.

The key performance success factor is:

Realising outstanding
asset & organisational integrity

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