Excellence in Stationary Equipment Reliability

by

F. Walter Pinto

Regional Reliability Manager

Lyondell Chemical Company

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Excellence in Stationary Equipment Reliability

• Purpose

• Present elements of a successful stationary equipment reliability program

• Share best practices, success stories and lessons learned

• Information and tools are widely available Challenge is in IMPLEMENTATION

• Stationary Equipment focus - principles apply to other disciplines

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Lyondell Chemical Company• Leading global manufacturer of chemicals and plastics, a

refiner of heavy, high-sulfur crude oil and a significant producer of fuel products

• Operations on four continents, nearly 8,000 employees

• Lyondell includes 3 wholly-owned businesses -- Equistar Chemicals, Millennium and Houston Refining

• Leading capacity positions in all major products

• # 106 in the Fortune 500

• Ranked among the industry best in on-the-job safety

• Recognized for excellence in corporate governance

• Unique culture through integration of predecessor company best practices

• Extraordinary success in developing single reliability culture

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Excellence in Reliability

• Reliability : Availability of operating unit on demand

• Focused on “Excellence” and not on “Compliance” - applies to all equipment, NOT JUST PSM covered!

OPERATIONAL EXCELLENCE PROGRAM

Safety – Environment – Reliability – Cost – Quality

People – Community

• Demonstrated experience in reliability; driving excellence in safety, environmental, quality and cost performance

Competitive Advantage

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Why Focus on Stationary Equipment?

• Accounts for >50% of the capital / maintenance cost and reliability events

• Safety, Environment and Reliability

• Accounts for a large % of total equipment

• Very high consequence due to stored volume

• Accounts for very high % of incidents

• Critical components in thin sections by design

• Extreme operating conditions and damage mechanisms. In most cases damage is not immediate

• On-line feed back is not available

Stationary Equipment reliability leads overall reliability.

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Systems X People = Performance

Str

on

g

Firefighting Excellence

Wea

k

Chaos Bureaucracy

Weak Strong

PE

OP

LE

SYSTEMS

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Stationary Equipment Reliability Focus Areas

People• Knowledge transfer, benchmarking,

unit inspector concept, training

Management Systems• Performance / Inspection / Maintenance

Standards, Workflows, KPI and Audits

Management Support• Continuous, consistent, and at

the highest and all levels

Engineering Practices• Global Engineering Standards,

master databases

Reliability Practices• Corrosion Manual, RBI, Data

Management System, Focused Reliability Improvement Programs such as CUI

Operations Discipline• MI-critical variables, MOC,

operator rounds, incident reporting

Implementation Discipline• Maintenance, turnaround, projects,

purchasing, warehouse, QA/QC

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Management Systems

Inspection and Maintenance Procedures

Engineering, Inspection and Maintenance Standards

Performance StandardsManagement systems required at each site Example: A management system exists for notifying past due inspections and recommendations

Mandatory technical requirements – Single owner responsibility and accountability

“How to” documents – plant procedures containing workflow, forms, roles and responsibilities and accountability

FoundationReliability Beliefs and

Principles

Compliance Audits Verification system is functioning by outside representatives.

Key Performance IndicatorsPerformance-related actionable metrics for reliability and cost improvement

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Engineering Practices

• Global Engineering Standards and Piping Specifications

• Single sponsor – responsibility and accountability

• Mandatory requirements – reduces debate

• Requires strong management support for implementation

• Plant or project addenda and deviation process

• Administered and kept evergreen by a dedicated group

• Continuous improvement - Process to incorporate lessons learned and best practices

• Robust computer-based systems for engineering data management

Reliability by design

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Inspection Management

Recommendations

Planning &

Scheduling

Inspection

Evaluation

Assessments

Records Update

• Unit and equipment inspection plans

• Jurisdictional requirements

• Monthly schedule review

• Inspection personnel qualification

• Inspection results

• Observations and findings

• Condition assessment

• Fitness-for-service evaluation

• Recommendation prioritization

• Tracking and closure

• Monthly schedule review

• Deferral process

• Inspection data management

• Turnaround Inspection reports

• Optimization of inspection plan and interval

• Materials Diagrams• RBI, RAT, MOC

• Leak assessment

• Maintenance QA/QC

• Receiving Inspections

• Conformance to standards

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Inspection Planning

Tools Application Benefits

API RBI Pressure vessels, piping inspection interval and plans

- External inspections in lieu of internal inspections (general corrosion) resulting in turnaround extensions and cost reduction

- Focus on external damage

Retube Analysis Tool (RAT)

Heat exchanger bundle prioritization for retube and inspection

- Improved bundle reliability

- Minimizing unplanned retubes

RV ToolRelief valve interval optimization.

- Cost savings through interval optimization

API RBI, draft Appendix O with internal best practices

Storage tanks- Cost savings through storage tank

internal inspection interval optimization

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RBI Implementation

• Over 30,000 equipment items evaluated

• $6.5MM annual cost avoidance

• Study results are being used to:

• Identify and budget for CUI

• Determine inspection TA work scope

• Focus resource spending to match damage source → 80% leaks are external

• Unit inspector, corrosion specialist and process engineer participation is critical

• Accuracy of process, design and inspection input data

• Review of results (especially if a contractor is involved)

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Mock Exchanger

• Suggest having internal qualification process for specialty NDE

• Qualification of NDE operator, hardware, and technologies through performance demonstration test

• > 60% of technicians failed the tests

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Inspection Data Management Tools

UltraPIPE

Management Tool

MeridiumInspectionManager

Integrates all plantdatabases andspreadsheets

SAP(W .O. System)

API-RBISoftware

Analysis Tool

CR & Insp. H istory

UTData

MERIDIUMRegistry

CADDrawings

Data Storage

Risk, Insp. P lan

Corrosion RateLast Inspection Date

Meridium

Intergraph/Documentum

Data Storage

Design SpecData

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Focused Reliability Improvement Programs• Issues are global in nature and require greater focus in

terms of resources and commitment - Integral to Lyondell’s long term reliability philosophy•Corrosion-under-Insulation (CUI)

•Storage tank inspection (AST)

•Heat exchanger reliability

•Painting program

•Furnace re-tube

•Auto-refrigeration and brittle fracture analysis

•Inspection catch-up

•Structural remediation

•Cooling water performance improvement

•Underground leak prevention

•Technical Directives – Small bore branch connections

•Success factors: champions, leadership and ownership

Special programs can make step improvement

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CUI Program• Carbon steel in 25 – 300 degree F and stainless steel in ESCC

temperature range

• Over $150MM committed in 12 years

• Ceramic coating/metal cages for personnel protection

• Insulation Elimination

• Areas not requiring personnel protection and not justified for energy conservation

• New Coatings and Fire Proofing

• Coatings for cold and damp surfaces

• Subliming-type fireproofing

• Rope Access

• Tower CUI inspection and caulking

• Evaluation of each application for cost effectiveness

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XXXX

XX

XXX

Plant Outages; Flaring; Fires; Major Losses

Findings Requiring Mechanical Repair

CUI Findings, Not Requiring Repair

•Permanent repairs done on the run•Temp. Repairs, Leak Boxes•OK to run, but must repair at T/A•Repairs completed during T/A•Pin hole leaks, installed leak clamp

CUI active, metal loss acceptable, blast, clean and paint

CORROSION-UNDER-INSULATION FINDINGS

CUI Related Events & Budget

0

100

200

300

400

0

2500

5000

7500

10000

12500

15000

17500

Repairs 18 12 57 212 202 313

Outages 5 0 1 6 2 3

Budget ($M) 500 500 4660 13549 14521 15665

1998 1999 2000 2001 2002 2003

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Operations Discipline

• Management of change process – involvement of inspection department

• Operator rounds

• Equipment and piping visual inspections

• Example: Insulation damage and CUI awareness

• Reporting all non-utility leaks. Consider leaks as failure of RBI to predict - opportunity for improvement

• MI critical variables and operating envelop. Incident investigation when exceeded and action plan

• Operator training

Operators are first-line inspectors

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Maintenance / Turnarounds / Projects

• Risk-based tools for turnaround scope development and prioritization

• Total cost of ownership philosophy

• Approved Vendor List and audit program

• Vendor/Contractor Alliances

• Shop fabrication and field construction QA/QC

• Receiving inspection, PMI, warehouse control

• Quality performance indicators

This is where the “rubber meets the road”

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KPIs and Audits

• Performance related actionable metrics to improve reliability and cost objectives

• Internal metrics: Past due inspections & recommendations, Number of leaks, Weld reject rates, PMI reject rate

• External benchmarking - Solomon and API survey

• Performance Audits

• Verification of management systems

• Verification of performance - vertical slice audit

• High level plant management support

Know where you are and where you are going

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Leak Reduction Success

0

10

20

30

40

50

60

70

80

90

Nu

mb

er

of

Leaks

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

Investm

en

t ($

in

Mil

lio

ns)

...

Leaks Investment, ($ in millions)

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People

• Staffing analysis - benchmarking

• Unit inspector concept (~250 PV per inspector)

• Corporate specialists integrated with manufacturing

• Participation in industry organizations

• Knowledge transfer

• Engineering standards, guidelines, best practice documents, technical publications

• Best practice teams & company reliability conferences

• Technical training and mentoring program

Don’t let knowledge leave

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R eliab ility S upt.

InspectionS upervisor

Inspector #1P lant 1

Inspector #2P lant 2

Inspector #3P lant 3

Inspector #4Tank Farm , QA/QC

Data C lerk

Inspector #1 280 pressure vessels 504 piping circuits 254 PSVs

Inspector #2 329 pressure vessels 592 piping circuits 332 PSV 's

Inspector #3 186 pressure vessels 335 piping circuits 200 PSV 's

Inspector #4 83 pressure vessels 149 piping circuits 78 AST's 186 PSV 's

NDE Tech #1 NDE Tech #3

Best in class Inspection Organization Structure

NDE Tech #2 NDE Tech #4

CAD Draftsm an

QC Inspector

Note: All four unit inspectorsare company employees

Pressure vessels per unit inspector : 220

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Management Support

• Continuous, consistent and at all levels

• Executive management support

• Demonstrate Return on Investment (ROI)

• Long term vision, leadership and commitment

• Management Reliability “Lobbyist” or Champions

Have your Vice Presidents or Plant Managers refused to reduce reliability program budget in financially

difficult years?

Ours have!!!

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Concluding RemarksShow me the money!

•Cost

•Quality

•Safety

•Environment

•People

•Community

Bottom LineReliability

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Glossary

API – American Petroleum Institute

AST – Aboveground storage tank

CUI – Corrosion under insulation

ESCC – External stress corrosion cracking

KPI – Key performance indicators

MI – Mechanical integrity

MIRA – Mechanical integrity risk assessment

MOC – Management of change

NDE – Nondestructive examination

PMI – Positive material identification

PSM – Process safety management

QA – Quality assurance

QC – Quality control

RAT – Retube analysis tool

RBI – Risk-based inspection

RV – Relief valve

TA – Turnaround