Updated OEMS

for Frontline and

Workforces

© 2016 Chevron
 Leadership and culture challenges
leading your team … reaching new heights

2018+ Build & sustain OE culture

Risk based: Focusing
Disciplined execution, effective safeguards
• High-consequence oriented
• Safeguard centered Instilling a sense of vulnerability
2004–2017
Management System Approach: • Assurance based Encouraging learning
• Leadership accountability • Error tolerant sharing and integrating knowledge

• Tenets of Operation • Learning driven

Encouraging reporting
1992–2003 • Processes developed & deployed • Simple and structured Incidents, near misses and non-conformances
Policy expectations: – 13 elements
Fostering trust
• 10 key elements and – Sponsor/advisor roles
management practices Creating open engagement
• Gap assessment tool
Applying organization-specific solutions
• Engagement workshops
• Progress tracking

© 2020 Chevron 2
 OEMS
What’s new.
Drive emphasis and improvement in performance

OE objectives – focus on high- Management System Cycle (MSC) –

consequence tasks moves assessment from individual OE
processes to Focus Areas
leadership and
Leadership and OE culture – OE culture
emphasis on OE culture, and updated
leader and workforce roles in risk, Risk Management – updated criteria and
safeguards and assurance Risk Profile spanning six Focus Areas

safeguards
focus areas
Focus areas – aligns with critical OE and OE
Risk Management workflows expectations Safeguards – defined to provide clear
management understanding of what mitigates OE risks
(streamlined 13 Elements to six Focus system cycle
Areas)

Expectations – reduced in number Assurance – defined to provide clear

with greater focus on outcomes understanding whether safeguards are in
place and functioning

© 2020 Chevron 3
 Risk Management
and Safeguard
Assurance

© 2018 Chevron Corporation

 preventing high-consequence
incidents and impacts

© 2020 Chevron 5
 OE risk management process refresh
focus on highest risks

• Specific risk assessments across OE Focus OE Risk Management Process

Areas
OE Focus Area Risk Assessments
• Common Chevron risk matrix

• Integrated OE Risk Profile will:

– Summarize highest OE risks

– Identify required safeguards to manage

those risks

– Prioritize risk reduction and assurance

efforts

• TechSafe Procedure provides detailed

approach of risk assessment for process
safety risks OE Risk Profile

© 2020 Chevron 6
 other top 3 workforce safety focused areas by facility
(in addition to risk profile)
• Based on YTD V&V gaps (as of Oct 7, 2018)
Ben Tan Platong EFSOII Satun Funan Erawan Pailin N-Pailin

Isolation of hazardous energy 🗸 🗸 🗸 🗸 🗸 🗸 🗸 🗸 🗸

(IHE)

Work at height (WAH) 🗸 🗸 🗸 🗸 🗸 🗸 🗸 🗸 🗸

Bypassing critical protection 🗸 🗸 🗸 🗸 🗸 🗸

(BCP)

Confined space entry (CSE) 🗸 🗸 🗸

Ops-north Ops-south

© 2020 Chevron 7
 Safeguards

Definition: Safeguards are the hardware and human actions designed to

directly prevent or mitigate an incident or impact.

• Common safeguards include facility design elements,

mechanical devices, engineered systems, protective
equipment, and execution of procedures

• OE Processes and standards establish and sustain

safeguards, but are not safeguards themselves

Safety is not the absence of incidents, but the presence of safeguards

© 2020 Chevron 8
 safeguard example
focus area: workforce safety & health

safeguard
Hardware: Certified lifting and rigging equipment is rated for task

design operate
Engineer designs lifting and rigging
Certified Crane Operator confirms weight of
equipment for specific safe working load
object to be lifted is less than safe working load
of crane and rigging

assess verify
risk safeguard assurance

risk assurance
Dropped objects during lifting and Qualified Personnel verifies lift plan (PTW/SWC),
rigging activities
V&V, dedicated V&V, verify crane and lifting
supporting processes and standards equipment certification; inspects rigging
Managing Safe Work/Lifting and Rigging Standard, Technical equipment prior to use
Codes and Standards, Procurement processes, OE Risk PTW and OE Assurance audits
Management, OE Assurance maintain
Qualified Personnel performs maintenance
inspection of crane and rigging

© 2020 Chevron Content not final – shown for illustrative purposes 9

 Safeguards – alignment with OEMS
example analysis – workforce safety and health scenario
1 2 3 4 5
Gravity
Certified Certified Approved Exclusion
lifting and crane written lift Dropped zones are
Operator rigging operator plan is Serious
object during maintained Medical
error equipment and riggers executed response injury or
lifting and and enforced
is rated for perform when rigging fatality
during
the task lifting needed operations

Original description Updated description aligned to Chevron’s safeguard definition

Human action
safeguard
Certified crane 1 Certified lifting and rigging equipment is rated for the task
Hardware
safeguard
Lifting and rigging Certified crane operator performs lifting; competent rigger utilizes slings and other lifting
2 equipment correctly. Rigger stays clear of load at all times; communication plan is agreed
Both human action
procedure and hardware
between all involved. safeguard
Written lift plan 3 Certified crane operator executes written lift plan
Exclusion zones with 4 Exclusion zones are marked, maintained and enforced during lifting and rigging operations →
signage Mitigative Safeguard

Medical response 5 Adequate rescue and emergency plans are in place and executed by trained personnel

© 2020 Chevron 10
 hierarchy of controls
good, better, best

Framework to prioritize selection of effective most effective

safeguards Physically remove the
elimination hazard—change
the system of work.
• Elimination and substitution are preferred
Replace substances or
substitution systems of work
• Engineered vs. those dependent on human with less hazardous
alternatives.

action engineering Isolate people from the

hazard. Design to prevent
controls incidents or mitigate
• Preventive vs. mitigative consequences.

administrative Provide safe work

practices and
controls procedures.
Example Application for Working at Height:
Always ask yourself what alternatives can be PPE Protect the worker with
personal protective
equipment.
considered to eliminate the worker being exposed
to the work at heights? least effective

© 2020 Chevron 11
 assurance concept

• Assurance is about moving from “I think” to “I know” that safeguards are in place and functioning.

• Verification is an action to confirm that safeguards are in place

and functioning as expected.

- Actions include inspections, audits (internal/external), record

reviews, or confirmation that work tasks are complete (e.g. Start
Work Check).

• Safeguard performance standard describes how safeguard will

function and is used as the foundation for safeguard verifications.
For example, PM job card of SDV confirms whether the valve can
shut within a specified process safety time.

• Verification results will

- improve understanding of risks and quality of risk assessment
e.g. whether a risk is escalated due to failed safeguards
- inform continual improvement efforts for managing and assuring
safeguards.

© 2020 Chevron 12
 Leadership and OE
culture

© 2018 Chevron Corporation

 Leadership and OE Culture
effective leadership is a critical success factor for OE — leaders cultivate and drive our OE culture
through their values, competencies and behaviors

build and sustain OE culture

Leaders demonstrate consistent and rigorous
Leaders need to understand and role-model OE behaviors;
application of OE to drive performance and
meet OE objectives. • Focusing their organization on the consistent and disciplined
execution and performance of safeguards
• Instilling and maintaining a sense of vulnerability throughout
Leaders must: the workforce
• Build and sustain OE culture • Encouraging the workforce to learn by seeking, sharing and
integrating knowledge from internal and external sources
• Focus on preventing high-consequence
• Encouraging the reporting of incidents, near misses and
incidents potential noncompliance, and positively responding to
and impacts by understanding and mitigating feedback
risks and managing and assuring safeguards • Fostering trust across the company
• Define clear OE roles and be accountable • Creating open two-way engagements with the workforce and
addressing their concerns
• Building and strengthening workforce OE culture through the
application of programs appropriate
© 2020 Chevron 14
 Leadership and OE Culture
focus on preventing high-consequence incidents and impacts by understanding and
mitigating risks and managing and assuring safeguards

© 2020 Chevron 15
 Leadership and OE Culture
define clear OE roles and be accountable
Leaders have the responsibility to: Everyone in the workforce contributes to our OE
culture and performance. Everyone has the
• Provide clear direction on OE roles aligned
responsibility to:
with We Lead
• Confirm people are equipped with the • Maintain a sense of vulnerability
technical, functional and • Understand the hazards and risks of our work
• OE leadership competencies and skills to
execute their OE roles • Assure safeguards are in place and functioning
• Monitor, coach and hold people • Follow required practices and procedures
accountable on their OE roles
• Apply the Tenets of Operation
• Provide resources to effectively and
efficiently execute the OEMS • Perform Start-Work Checks
• Direct and monitor compliance with legal • Exercise Stop-Work Responsibility
requirements
• Build partnerships, create alignment and
access functional expertise

© 2020 Chevron 16
 2019 Thailand risk profile
inform highest priorities for managing risks and safeguards

Thailand Heat Map Total 15 scenarios

The risk profile:

• Is based on existing risk
assessments
• Integrates risk across the OE focus
areas
• Summarizes and prioritizes potential
high consequence/ high risk
scenarios
• Summarizes identified safeguards,
results of safeguards verifications,
and risk reduction recommendations
• Enables prioritization of safeguard
assurance activities
• Is required to be updated annually

© 2020 Chevron 17
 comparison between bow tie and swiss cheese

Similarity: components are the

same, but in different terms, e.g.
• cause vs initiating event
• event vs incident

Differences:
• Safeguards per new definition
include design, operate and
maintain.
• Some engineering
safeguards require human
Incident action (e.g. alarm)
Initiating
Event

Engineering Administrative Individual Post Incident

(Preventative) (Preventative) (Preventative) (Mitigation)
© 2020 Chevron 18