Risk Based Inspection A Key Component to Generating Value from a Mechanical Integrity Program API Singapore 2012

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Robyn Arnold
6 years ago
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1 the global leader in asset performance management solutions Risk Based Inspection A Key Component to Generating Value from a Mechanical Integrity Program API Singapore 2012

2 Agenda Introduction Achieving Value with RBI Risk Based Mechanical Integrity Work Process Examples of Value Achieved 2

3 Operator s Obligation to Stakeholders Ensure Safe, Sustainable Operation Regulatory Compliance Safety Environmental Protection Maximize Profitability Optimize Equipment Reliability Improve Plant Availability 3

4 Property Damage Losses Exceeding $10MM 4

5 Property Damage Losses Exceeding $10MM 5

6 The Impact of Equipment Failures Equipment failures cost the US Process Industry over $4 Billion per year 2/3 of those costs are associated with failures of static equipment The average facility has a risk of $25 million per year due to failures of static equipment 2/3 of those costs are associated with piping failures 6

7 The Dilemma Under-managing an integrity program results in the high costs of unanticipated failures Over-inspecting assets results in excess cost with little if any improvement in confidence of equipment condition Getting it right will create significant, measurable value 7

8 Reality and Response Business Pressure Risk Based Asset Integrity Program Low tolerance for failures 8

9 Achieving Value In every plant where there is a managed, time based inspection program it will be possible to simultaneously reduce the risk and reduce the inspection costs by using a risk based approach. Value comes from: Reducing risk Reducing inspection costs Reducing maintenance costs Improving plant availability 9

10 Generating Value through Risk Reduction The intent of RBI is to focus inspection resources on critical equipment to prevent failures Preventing critical or catastrophic equipment failures is the highest value of an RBI Program When an RBI program predicts a high risk, inspection confirms the risk and steps are taken to reduce the risk, value has been created 10

11 Generating Value through Risk Reduction Probability can be measured in Events per Year Consequence can be measured in Dollars per Event Risk can be quantified in Dollars per Year 11

12 Value from Reducing Inspection Cost Inspections on lower risk items are candidates to reduce or eliminate Inspections that do not increase the confidence in the condition of the equipment are candidates to reduce or eliminate Inspections on higher risk items may have to be increased or added 12

13 Observations of Time Based Programs Optimum Inspection Extent 13

14 Value from Reducing Maintenance Cost Turnaround cost savings Reducing the number of pressure vessels to be opened for inspection during future turnarounds Extending the turnaround interval Shortening the turnaround Duration Reduce the cost of maintenance preparation, access, and cleaning prior to inspections Reduce the frequency of relief valve maintenance 14

15 Value from Increased Availability Shortening the turnaround Duration Reduced number of outages due to unanticipated failures 15

16 MECHANICAL INTEGRITY WORK PROCESS 16

17 Work Process Steps Define Mitigation Strategy Perform Risk Analysis Execute Strategy Identify Potential Degradation Mechanisms Evaluate and Communicate Results Core Analysis Collect or Update Asset Data Recommendation Management Asset Taxonomy Event History Asset Criticality 17

People Process People Process Risk Analyst Risk Analyst Calculate Risk Determine Production Loss Consequence Inspection Specialist Corrosion Specialist Risk Analyst Inspection Specialist Define

18 People Process People Process Risk Analyst Risk Analyst Calculate Risk Determine Production Loss Consequence Inspection Specialist Corrosion Specialist Risk Analyst Inspection Specialist Define Inspection Strategies Group and Select Equipment for Inspection Risk Analyst Risk Analyst Review and Validate Risk Results Define Acceptable Risk Inspection Specialist Corrosion Specialist Inspection Specialist Team Leader Develop Recommendations Develop Activity Work Packages Plan and Prioritize Shutdown Inspections People Process Corrosion Specialist Corrosion Specialist Corrosion Specialist Define Corrosion Loops Define Integrity Operating Windows Define Degradation Mechanisms People Inspection Specialist Team Leader Process Manage and Perform Inspections People Inspection Specialist Inspection Specialist Process Specialist Inspection Specialist Inspection Specialist Process Define Components Collect Design and Process Data Review Inspection /Repair History and Assign Inspection Confidence Field Verify Equipment People Inspection Specialist FFS consultant Work Process Item Evaluate Inspection Results Make Recommendations to resolve conditions that do not meet acceptance criteria 18

19 CASE STUDIES VALUE ACHIEVED 19

20 Example of Value Achieved The Client US Refinery 8 process units, 2,300 equipment items Client Needs Get all equipment into a manageable, compliant MI Program Convert from conventional API Code based approach to Risk Based approach Optimize the inspection activities required during an upcoming Turnaround 20

21 Example of Value Achieved The Results The 4 month study cost approximately $400,000 The return on investment yielded a payback in less than 12 months The investment yielded a value exceeding $2,500,000 in Turnaround cost savings The investment quickly delivered almost $7,000,000 in risk reduction savings Subsequent RBI studies at this and other refineries have produced over $160,000,000 in risk reduction along with expectations for ongoing savings from Turnaround plans while optimizing inspection costs 21

22 Example of Value Achieved 22

23 Case Study - Value Achieved The Client 38 year old Ethylene Plant with integrity program in place but 85% of availability losses over prior 5 years associated with Mechanical Integrity Goals Reduce High Potential Incidents by 90% Reduce Leak Repair Clamps by 90% Reduce NDE locations on piping by 50% Reduce RV shop tests by 40% 23

24 Measures of Costs Reduction Actual Inspection and Maintenance Cost Reductions ($1.2 million / yr) Reduced RV Maintenance Reduced Internal Inspections Optimum number of NDE Inspections All Project Goals Achieved 24

25 Case Study - Value Achieved Cumulative Risk over Time 2003 Risk - $ per Year 2007 Expected after 2008 TAR Asset Count 25

26 Case Study - Value Achieved The Client Chemical Manufacturer in US Pilot project for one Operating Unit Client Needs Get all equipment into a manageable, compliant MI program Convert from conventional API code based approach to Risk Based 26

27 Case Study - Value Achieved The Results Compliant Mechanical Integrity program for fixed equipment and piping, including all anticipated degradation mechanisms 15 year inspection plan developed with 75% reduction in inspection locations and longer inspection intervals Greater than $1,350,000 savings in inspection costs over the next 10 years Over $11,500,000 in total value achieved over the next 10 years 27

28 Case Study - Value Achieved RBI (Today's Dollars) Traditional (Today's Dollars) RBI Implementation Costs (Today's Dollars)

29 Questions? 29

Guide for the Extension of Boiler Internal Inspections

Guide for the Extension of Boiler Internal Inspections State of Tennessee Department of Labor and Workforce Development Division of Workplace Regulations and Compliance Boiler Unit Tennessee Board of Boiler Rules 220 French Landing Drive Nashville, Tennessee