ARC WHITE PAPER
By Valentijn de Leeuw and Florian Gueldner
OCTOBER 2012
Good Asset Information Management
Practices Improve Reliability and Reduce
Operational and Safety Risks
Executive Summary...................................................................... 3
Analyzing and Managing Operational and Safety Risks ...................... 5
The Potential of Accurate Asset Information..................................... 8
Use Case: Data-Centric Operation .................................................. 9
Use Case: Immersive Operator Training ........................................ 14
Recommendations ...................................................................... 16
References ................................................................................ 16
VISION, EXPERIENCE, ANSWERS FOR INDUSTRY
ARC White Paper • October 2012
Number of Major Accidents in EU-15, 1996-2004
Reporting in EU’s Major Accident Reporting System
(Christou, 2008)
800
DAMAGE (million $/year at 2000 prices)
700
Raw data
600
5-year average
500
Linear trend line
400
300
200
100
0
1965
1970
1975
1980
1985
1990
1995
2000
Trend in World-Wide Refinery Material Damage Costs
In Millions of Dollars per Year (Schouwenaars)
2 • Copyright © ARC Advisory Group • ARCweb.com
ARC White Paper • October 2012
Executive Summary
Corporate performance for process manufacturers is typically measured
against criteria such as earnings and margin. However, other metrics such
as regulatory compliance, process and worker safety, or sustainability recently have gained more importance as performance criteria. Influencing
the latter indicators implies costs, but also offers benefit opportunities. This
white paper looks at the need for enhanced operational and safety management measures via the correlation between correct and up-to-data asset
The Cost of Accidents and Lack of
Reliability
The combined cost of accidents and
incidents and lack of reliability could be
as high as one to three percent of
turnover on an annual basis, and in
information and reduced operational and safety
risks. After that, available solutions with the potential to improve current industry practice are disdiscussed.
The costs of maintenance and process safety im-
addition a cost in the range of $500
provement measures are well known, but their
million to five billion per major disaster.
impact on reliability and process safety are difficult
For a super oil major, this would
to grasp because they are correlated and because
happen on average every 20 years.
accidents and incidents are infrequent and occur at
irregular intervals.
Incidents and accidents are
viewed as operational and safety risks, an independent statistical phenomenon. This paper shows that the combined cost of accidents and incidents
and lack of reliability could be as high as one to three percent of turnover
on an annual basis, and in addition a cost in the range of 500 million to five
billion dollars per major disaster. For a super oil major, this would happen
on average every 20 years, in a range of every four to 100 years depending
on the safety and reliability practices.
Initiatives to improve safety and availability are strongly and positively
correlated. Occupational safety improvement measures have little impact
on process safety, but process safety improvement measures have a positive
impact on occupational safety. Since the sources of most safety and reliability issues are human, to be effective, reliability and process safety measures
need to integrate asset management and HSE with the reliability of human
behavior and of executing processes. For effective and efficient reliabilitycentered maintenance planning and execution, asset information must be
accurate and up-to-date. Any maintenance activity or plant change must be
recorded and be made available to all personnel. This allows decisionmakers to concentrate on the analysis of the problem, knowing that they are
already working with correct (as-built or as-maintained) data.
Copyright © ARC Advisory Group • ARCweb.com • 3
ARC White Paper • October 2012
The Siemens’ COMOS asset data hub for engineering, maintenance and
operations enables this real-time visibility on asset state and health. The
availability of up-to-date asset information is also
Reliability and Process Safety
Require Accurate Asset
Information Management
To be effective, reliability and safety
measures need to integrate asset
management and HSE with the
reliability of human behavior and of
paramount to decision making in emergencies and
reducing potential damage. Within COMOS, existing
3D models of installations are kept up-to-date and
can be used for immersive operator training in a safe
environment. The technology reduces training time
and cost and improves operational readiness.
3D
executing processes. For effective
viewing also supports maintenance and operations.
and efficient reliability-centered
Business benefits include reduced operational and
maintenance planning and
safety risk, increased productivity of engineering,
execution, asset information must
maintenance and operations, faster operational
be accurate and up-to-date
readiness of assets and operations personnel, and
better regulatory compliance. To illustrate this, two
use cases will analyze the cost and management of operational and safety
risks.
!
ARC's Asset Information Management Solution Map
4 • Copyright © ARC Advisory Group • ARCweb.com
ARC White Paper • October 2012
Analyzing and Managing Operational
and Safety Risks
Many companies today are using metrics such as regulatory compliance,
process and worker safety, or sustainability and environmental footprint as
performance criteria in addition to purely financial metrics. Influencing the
latter measures implies costs, but also contains
Correlation Between Financial
Performance, Risk, Safety and Asset
Reliability
benefit opportunities. For example, benefits of
energy efficiency improvements as part of sustainability initiatives offer a quick payback on
•
Asset reliability and process safety strongly
impact financial performance.
•
The average financial impact of major
industrial accidents is strongly
underestimated
costs and benefits of sustainability improvement
•
The risk of major industrial accidents can be
greatly reduced by maintenance and the
establishment of a safety culture.
dence.
•
Safe and reliable operations are compatible
with effective cost management.
•
Occupational safety improvement has strong
impact on injuries and fatalities but not on
major accidents. Process safety needs to be
addressed in addition to occupational safety.
•
•
To be effective, an integrated approach to
safety, reliability and human behavior is
required.
Examples of measures are up-to-date asset
information for operational, maintenance
decisions and operator training.
investments (Farrell and Remes, 2008).
The
metrics are likely to evolve over the years, but
are fairly stable can be predicted with confi-
Process safety and asset availability improvements have a direct impact on sales. Incidents,
accidents and unwanted shutdowns, instead
have the opposite effect, and in the worst case
they can cause injuries, fatalities, damage to
environment and assets, with the associated cost
and negative impact on the brand. However,
accidents and incidents are infrequent and occur
at irregular intervals. They are viewed as operational and safety risks that can be managed,
but cannot be reduced to zero.
Human Error and Safety
The ASM Consortium estimates that about 40 percent of unwanted shutdowns in the process industry are attributed to equipment failure, 20
percent to failing to follow processes, and around 40 percent to human error (ASM Consortium, cited by O’Brien, 2010)). Investigations by Total on
the impact of human behavior on process safety, together with comparisons
with best practices from the nuclear industry and airlines, indicate that the
risk of human error can be reduced by a factor of at least 100 by applying
rules and principles (Van Roost, 2010), and by establishing a safety culture
(Ghosh and Woll, 2007). Their analysis of a series of industrial accidents
and near misses reveal that causes often include human error.
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ARC White Paper • October 2012
Efforts to improve occupational safety have strongly reduced the number of
injuries and fatalities in recent years, but have had little impact on major
industrial accidents, which have declined only very slowly over time
(Schouwenaars, 2008;, Haesle et al., 2009). These facts corroborate the findings of Total and others that occupational and process safety should be
treated separately.
The EU has recorded a frequency of about three major accidents per 1000
industrial establishements per year (Christou, 2008) with at least one fatality and more than €2.5 million worth of damage. Major disasters, such as
the Toulouse, the Texas Refinery or the Buncefield explosions, are at another scale: the average cost are $2 billion and range from $500 million to $5
billion, with a record of at least $40 billion reported
for the Deepwater Horizon spill in the Gulf of Mexico. For a typical super oil major with a turnover of
40%
40%
$300 billion and an operating margin of eight percent or $24 billion, the likely frequency of a major
accident according to the EU definition is around
20%
three accidents every two years. ARC estimates that
EquipmentFailure
HumanError
NotFollowingProcesses
Sources of Downtime and Slowdown
major disasters have a much lower frequency, possibly one every 20 years, for this size of company
this comes with an average annual costs of around
$100 million or a few percent of profit. The frequencies for major accidents and disasters vary by a
factor of at least five depending on the safety culture and reliability practices of the company and could be as high as a major accident every two
months, or a major disaster every four years. A typical super oil major
could lose money a given year in the worst scenario, as happened to BP in
2010. For a smaller oil company, the worst case scenario would create such
a loss that the company would probably not survive.
Processes and Asset Reliability
Since the correlation between expenses for maintenance and reduction of
the number of accidents is not obvious, the temptation exists to reduce
maintenance and inspection costs to improve profitability. A McKinsey
study (Laurens and Van Der Molen, 2009) reported that world class oil &
gas producers have 95 to 98 percent asset availability even for older assets.
At the same, they make the right decisions about cost reduction, avoiding a
downward spiral in reliability performance. McKinsey found that worldclass companies apply preventive and condition-based maintenance approaches, and flawlessly execute plans and processes.
6 • Copyright © ARC Advisory Group • ARCweb.com
A realistic
ARC White Paper • October 2012
improvement in plant availability is one to three percent while lowering
maintenance costs by 25 to 30 percent according to Williams (2001). This
translates to one to three percent of turnover in supply-constrained markets.
Correlation of Causes Calls for Integration of Measures
Asset reliability and process safety improvement measures both have an
important impact on financial performance and risk. Initiatives to improve
safety and availability are strongly and positively correlated. Since the
sources of most safety and reliability issues are human, to be effective, reliability and safety measures need to integrate asset management, HSE, and
human behavior.
Measures to Reduce Risk and Improve Availability
Although statistics for incidents, accidents and shutdowns are readily
available, the advent of such an event always seems a surprise. The human
mind can assess those risks, but intuitive estimations and decisions regarding risks are likely to be incorrect (Kahnemann, 2011; Tversky and
Kahneman, 1974).
Management does have the possibility to take the
Location, year
Piper Alpha, 1988
Estimated cost in
billions of dollars
3.4
right decisions: the risk and the staggering average
financial cost of accidents and unwanted downtime
can be strongly reduced by relatively small efforts
Enschede, 2000
0.45
and investments. In a comparison to the aviation
Toulouse, 2001
1.8
industry, Total showed that risks of human error
Skikda, 2004
>3
could be reduced by relatively simple means such
Buncefield, 2005
2
as dividing responsibilities among two people and
Texas City, 2005
1.5
Deepwater Horizon, 2010
40
Cost of Major Industrial Accidents
double-checking decisions. In addition, operational and safety risks can be reduced considerably by
having an accurate picture of the assets and their
health.
Up-to-date asset information is paramount to making correct decisions in
maintaining assets.
It is equally important when training people on
processes and behavior. Both appropriate behavior and up-to-date knowledge become critical when making decisions in emergency situations.
Copyright © ARC Advisory Group • ARCweb.com • 7
ARC White Paper • October 2012
The Potential of Accurate Asset
Information
The use of a single, consistent and global data hub such as COMOS, kept
up-to-date at all times by all disciplines, creates instantaneous and complete
transparency of information for each plant object and for all parties. Using
configurable workflows, the different disciplines can collaborate using a
structured process. As a result,
•
Plant engineering and construction is of higher quality, and time to
operational readiness is shortened significantly.
•
The documentation provided at handover is an up-to-date ‘as-built’
asset database, that, when maintained, becomes the ‘as-maintained’ database. Reducing engineers’ time to enter and find information delivers
substantial productivity improvements.
•
The regulatory obligation of up-to-date plant documentation is fulfilled
at all times.
•
In urgent situations, reliable decisions can be made based on up-to-date
plant information. Faster and more appropriate reactions reduce operational risks considerably.
Benefits of Integrated Engineering
and Operations
With COMOS Walkinside’s 3D virtual reality viewer,
3D data developed during the engineering stages can
The usage of a single, consistent and up-to-
be reused through all lifecycle phases of the plant in
date database for design, engineering,
operations, maintenance planning, simulation and
construction, handover, operations and
workforce training. Specifically designed for opera-
maintenance in conjunction with 3D plant
tions, the tool is easy to use for operators and
visualization can help reduce operational risk,
engineers, providing a fast and realistic rendering of
increase productivity, accelerate operational
complex models, creating a perception of being
readiness, and improve regulatory compliance.
present on site.
Typical use cases include project
progress reviews, problem solving sessions, off-site
immersive training, spatial context for engineering and maintenance tasks,
and spatial analysis and decision support during emergencies.
8 • Copyright © ARC Advisory Group • ARCweb.com
ARC White Paper • October 2012
Immersive Operator Training with COMOS Walkinside
The immersive training experience strongly reinforces learning objectives,
reduces traditional on-site operator training, and has proven to enhance
operational readiness of the operators.
Use Case: Data-Centric Operation
Modern Asset Management during Operate-Maintain
Phases
Asset management is gaining importance in the process industries as a
process to determine the strategy for maintaining and modernizing assets.
The goal is to ensure that these assets provide the production capability
required while lowering costs over the asset lifecycle. Asset management
improves performance, for example by coordinating debottlenecking and
maintenance actions as well as interactions between assets. An asset managemen solution can support a decision to clean a heat exchanger limiting
production in summer, in the spring rather than in autumn and to delay an
expense. Another example is that changing a control valve after an advanced process control (APC) project may destroy the economic benefits of
the APC.
One of the most important aspects of asset management is providing accurate and contextual information to users.
As asset management uses
Copyright © ARC Advisory Group • ARCweb.com • 9
ARC White Paper • October 2012
multiple sources and tools, such as equipment documentation, engineering
data, maintenance history, real-time data, root cause analysis and reliability
centered maintenance tools, work plans or spare parts availability.
Operations need to make decisions in real-time
COMOS
COMOS is Siemens’ solution for plant engineering,
to operate plants in an optimal way and accord-
operations and maintenance from process design to
ing to a production schedule. They need access
decommissioning in the process industries. COMOS
to the state and health of parts and components
supports process engineering, P&ID, 3D, electrical,
of the plant to make the right decisions. They
instrumentation and control engineering. In addition,
need to know if a pump has been replaced or
COMOS supports operations management, e.g. with
not, and if this allows them to increase
document management including workflow and approval
throughput and to which level. They need to
processes or the maintenance management with risk
evaluation for a risked-based maintenance approach.
know which parts of the plants are locked out
With its object-oriented approach and single database
for maintenance. In case of trouble or urgency
for all lifecycle phases and disciplines, COMOS provides
they need to take reliable decisions to avoid
instantaneous and complete transparency of information
damage or spills. Maintenance is subprocess of
related to a plant object for all stakeholders.
asset management that has the goal of restoring
Configurable workflows enable different disciplines and
the health of an asset.
roles in engineering and operations processes to
collaborate in a structured manner.
The Most Frequent Application:
Based on these capabilities:
• Engineers have direct access to information changed
by colleagues in other disciplines. This can increase
the degree of parallel engineering.
Document Management
Engineering, procurement and construction
companies (EPC) do all of their engineering
Object-orientation enables modular engineering.
Applied throughout the enterprise, it improves
standardization that generates time and cost
benefits, facilitates cooperation and increases
flexibility in personnel assignment
work with computer-aided software, and the
•
The time to find information is reduced substantially
which leads to productivity improvements.
Sometimes electronic versions of the docu-
•
Operational readiness can be predicted more reliably.
operators do not benefit from the EPC’s engi-
•
The regulatory obligation of up-to-date plant
documentation is fulfilled at any point in time.
neering system’s capabilities.
•
In urgent situations reliable decisions can be made
on on-line plant information. Faster and more
appropriate reactions reduce operational risks
considerably.
In practice, owner-operators often rely on doc-
•
same is true for their subcontractors. When a
plant is commissioned, in a majority of cases,
documentation is handed over on paper.
ments are provided.
uments
for
However the owner-
operations
and
maintenance.
Changes are documented as hand-written corrections on printed documents. In the best case
electronic documents are updated afterwards.
This process is time consuming and error prone, information is regularly
out of date, and interactions between disciplines lead to unnecessary iterations.
Many engineering databases and systems do not have the
functionality to support operations and maintenance and, as a result, a
10 • Copyright © ARC Advisory Group • ARCweb.com
ARC White Paper • October 2012
maintenance management system must b
bee primed with ‘as-built’
‘as
information, extracted from the hand
hand-over
over documents. When the owner needs to
do debottlenecking, troubleshooting, or wants to embark on a modernization or improvement project, the search for as
as-built and as-maintained
maintained data
starts as input to the engineering systems. One can easily imagine the time
this takes and the risk of data losses this implies
implies.
The Road Less Traveled: Data Centric Operation
Up-to-datee plant data for operations and maintenance
ance can be provided at
any time to any user of a platform such as COMOS, provided a process is in
place that guarantees that data are kept current.. With appropriate IT secusec
rity measures, engineering and maintenance contractors, equipment and
other providers can all safely share the as
as-built and as-maintained
maintained data
image of the plant, whether it is before or during construction, before or
after handover, during maintenance or operation. Instead of maintaining
documentation, the different players update data records, simplifying and
speeding up the process enormously.
Owner/Operators and EPCs Collaborate Effectively when Using the Same,
Consistent Asset Information
Owner-operators
operators such as Petrobras have understood the benefits from conco
sistent and modular engineering for all their refineries. Petrobras has made
investment
investments in infrastructure, software, setting up a cross-company
cross
workflow, and defining engineering modules. To ensure up-to-date
up
plant
data, the usage of COMOS and the Petrobras workflow is mandatory for
every contractor. After h
handover, the plant data ‘model’ is kept up-to-date
up
by operations and maintenance personnel. For maintenance the use of a
single system with both maintenance functions and engineering data is
comfortable and easy to use.
Certain EPCs, in particular those that do specialized and complex engineerenginee
ing jobs, have also understood the benefits of using a single, consistent and
up-to-date
date engineering database that enables the use of pre-engineered
modules. They explain the benefits of using such sys
systems to the client. If
Copyright © ARC Advisory Group • ARCweb.com • 11
ARC White Paper • October 2012
the client has a preference for another engineering data format, they can
convert the COMOS information to the most common other formats without compromising on the engineering tool.
!
ARC's Asset Information Management Solution Map
Data Centric Operation with Context from a 3D Plant Model
A 3D view of the equipment within its plant environment is a tremendous
help in conjunction with tabular, text or 2D information. Using COMOS
Walkinside, maintenance personnel can look up where the equipment is
located, if it is accessible from the floor, or if scaffolding or a crane is necessary. The other way around, using the link with COMOS, the engineer can
directly access equipment characteristics, maintenance history, documentation, by clicking through on the equipment in the 3D view. Vice versa, if
the engineer was working with the engineering and maintenance database
he can click through to the 3D view of the equipment and see the spatial
context.
To improve productivity, companies in sectors such as oil & gas and other
process industries aim to reduce manual intervention and increase the proportion of unmanned operation. For personnel that are not often on-site, a
3D view of the plant helps to understand where equipment is located and
how it is connected. This helps personnel to pre-plan interventions before
arriving on location.
12 • Copyright © ARC Advisory Group • ARCweb.com
ARC White Paper • October 2012
Spatial View of Two Pumps in COMOS Walkinside
A 3D view can help to get a spatial perception of locations where work
permits are issued, and to assess the risk factors of those locations in terms
of presence of dangerous substances, hot surfaces or interactions with the
process.
If personnel are equipped with RFID chips, they can be located at a glance
in a 3D representation during an emergency and be guided to a safe location.
2D Process Flow Diagram with Two Pumps (cyan)
Copyright © ARC Advisory Group • ARCweb.com • 13
ARC White Paper • October 2012
Use Case: Immersive Operator Training
Immersion in a virtual environment (VE) is used in many different forms in
modern training because it has proven to shorten learning and strengthen
memorization. Within the context of computer-generated images, the VE is
called immersive (IVE) when the user or gamer can directly control the
avatar, giving him the perception he is part of the environment (Bailenson,
2008). To train field operators and maintenance personnel of industrial
process plants, it is more effective to provide them with a 3D simulation
environment in which they can virtually move around, make decisions on
their route and their interactions with equipment, than showing them a
movie.
A global player in upstream has decided to
train its field operators for a new Floating
Production Storage and Offloading vessel
(FPSO). These are offshore production facilities that house both processing equipment
and storage for produced hydrocarbons.
They used COMOS Walkinside’s immersive
training simulator (ITS) for this purpose.
During
a
five-week
period,
operators
“walked around” a 3D graphical model for
eight hours each day with sufficient detail
and realistic colors to create the perception
of reality. The primary purpose was to familiarize themselves with their future work
environment to know where on board they
are located, where to find equipment and
how to go there efficiently. A second purFloating Production Storage and Offloading Vessel
pose
was
to
teach
them
to
operate
equipment and execute standard operating
procedures (SOP). They were tasked to execute real SOPs such as locating
equipment on deck, going there, finding out its status, and taking appropriate action. For example: “Go to valve V112, check its position, then
close it!” By executing tasks correctly, operators earned points. They could
also be penalized in terms of points for improper actions. To create a positive learning environment, emphasis was put on stimulating improvement
rather than punishing errors.
14 • Copyright © ARC Advisory Group • ARCweb.com
ARC White Paper • October 2012
All operators who had used PCs before were capable of “walking inside”
with only half a day of introduction to the tool. The operators readily accepted the tools and described the training as “practical”, as opposed to
“theoretical”. Of course the two are necessary to give the operator a full
understanding of the meaning of their tasks.
COMOS Walkinside
VRcontext, a spin-off of GDF Suez and recently
acquired by Siemens, took on the challenge to build a
viewer for very large 3D models, such as process
plants, that combines a realistic view with fast
The instructor has the possibility to look
virtually over the operator’s shoulders by
observing their screens in real-time. He
creates procedures with prompts that
guide
operators through
their tasks.
navigation for non-specialists, such as operations or
These can be executed in an automated
maintenance personnel. COMOS WalkInside converts
way, guiding the operator step by step
3D plant models from well-known 3D design
through the execution of an action list. In
applications into a suitable format to reach this
the multi-user environment, the instructor
performance. Features include:
• Realistic visualization and navigation within models
containing several million objects.
can create scenarios that imply coordi-
•
Automatic model conversion. Model cleaning of
temporary design objects also can be automated.
•
A software development kit allows the user or the
integrator to develop plug-ins for any application.
Applications of COMOS Walkinside include:
•
•
•
nated actions of several operators, each
with his own avatar.
The user reported that immersive training
compared favorably with traditional training.
It is common practice to send the
Reviews of EPC designs together with or by the
owner-operator, without complex 3D CAD tools.
Closer cooperation between OO and EPC allows
earlier detection of problems and helps to solve
problems, resulting in earlier operational readiness.
future operators for a few months to the
Immersive Virtual Training for operations or
maintenance where the user can move with his
avatar and experience the plant as in reality. The
application saves time and increases effectiveness.
inaccessible, or auxiliary installations may
3D plant and equipment viewing in conjunction with
asset management or operational tasks. COMOS
Walkinside provides access to engineering,
operations, maintenance and business planning
information.
shipyard where the FPSO is built. Since
the ship and the equipment are under
construction, equipment can be missing or
be present that are not relevant to their
work.
Most often the shipyards are in
other parts of the world, involving expenses for travel and living. The immersive training simulator saved training
time and was more effective. As a result
the operators were more operational than
with classical training. This could imply
higher utilization rates and fewer errors with economical or environmental
impacts. Since the FPSO mentioned above was delivered one month earlier
than scheduled, and the operators’ training was shorter than usual, the
training did not delayed the commissioning of the ship, resulting in an
overall shortened time to production, and an increased cash flow.
Copyright © ARC Advisory Group • ARCweb.com • 15
ARC White Paper • October 2012
Recommendations
Based on the research conducted for this paper, ARC Advisory Group recommends to:
•
Conduct mechanical, process and automation related risk analysis as
well as analysis of risk in applying procedures and appropriate behavior. Design layers of protection by integrating types of protections:
technical, human behavior and organizational.
•
Base decisions for operations and maintenance on up-to-date asset information and guarantee the accuracy of this information through a
data centric IT approach and appropriate processes for all disciplines
acting upon asset data.
•
Train operations and maintenance personnel using a safe virtual environment that references up-to-date asset data. Complement this with
process and automation-oriented operator training simulation.
•
Institute benchmarking on maintenance, reliability and process safety to
monitor the level of excellence and the available improvement potential.
References
Abnormal Situation Management (ASM) Consortium, cited in: O’Brien, L.,
2010, “We need a Better Approach to Procedural Automation”, ARC Strategies, ARC Advisory Group, September, 2010.
Bailenson J.N., N. Yee, J. Blascovich, A.C.Beall, N. Lundblad and M. Jin,
2008, “The Use of Immersive Virtual Reality in the Learning Sciences: Digital Transformations of Teachers, Students, and Social Context”, The Journal
Of The Learning Sciences, Vol. 17, pp. 102–141.
Christou, M., 2008, “Major Accidents: Examples, statistics and remarks on
their prevention”, Presentation on behalf of the Major Accident Hazards
Bureau, of the European Commission, XI EWHN Conference, October 2008.
Farrell, D. and J.K. Remes, “How the world should invest in energy efficiency”, McKinsey Quarterly, July 2008, pp. 1-11.
16 • Copyright © ARC Advisory Group • ARCweb.com
ARC White Paper • October 2012
Ghosh, A., and D. Woll, 2007, “Best Practices for Process Safety Culture”,
ARC Best Practices, ARC Advisory Group, July 2007.
Haesle, J., C. Devlin and, J. L. Mccavit, 2009, “Improving process safety by
addressing the human element”, Process Safety Progress, Vol. 28, No. 4, pp.
325–330, December 2009.
Hollywood, P., 2012, “The Journey to Operational Excellence Begins With
Risk Management, ARC View, ARC Advisory Group, May 2012.
Kahneman, D., 2011, “Fast and Slow Thinking”, Penguin Books.
Laurens, C. and O. Van Der Molen, 2009, “This is the time to deliver on
operational excellence”, in: McKinsey Quarterly 2009, Number 2, “Perspectives on Oil & Gas”.
Schouwenaars, E., 2008, “Risks Arising From Major Accident Hazards,”
Refining Management Forum, Copenhagen.
Tversky, A. and D. Kahneman, “Judgment under Uncertainty, Heuristics
and Biases,” Science, Vol. 185, No. 4157, pp. 1124-1131, 1974.
Van Roost, H., 2010, “Excellence in Safe Operations”, presented at the
Process Management Academy, Düsseldorf, March, 2010.
Also cited in:
De Leeuw, V., 2010, “Commitment to Building the Future at the Process
Management Academy 2010”, ARC Insight # 2010-16EMPH April, 2010.
Williams, J.P., 2001, “Predicting Process Systems,” Hydrocarbon Engineering, July 2001, pp. 1-4.
Haesle, J, Devlin, C. and J.L. McCavit, “Improving Process Safety by Addressing the Human Element”, Proceedings of CCPS convention 2008, pp.
193-204.
Copyright © ARC Advisory Group • ARCweb.com • 17
ARC White Paper • October 2012
Analyst: Valentijn de Leeuw, Florian Gueldner
Editor: David Humphrey
Acronym Reference: For a complete list of industry acronyms, refer to our
web page at www.arcweb.com/Research/IndustryTerms/
2D
Two-dimensional
IT
3D
Three-dimensional
IVE
Information Technology
Immersive Virtual Environment
AIM
Asset Information Management
PC
Personal Computer
APC
Advanced Process Control
ROA Return on Assets
EPC
Engineering Procurement and
RFID Radio Frequency Identification
Construction company
SOP
Standard Operating Procedures
FPSO Floating Production Storage and
Offloading vessel
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