M&I Dept. - An extended arm of the refineries to improve reliability.

Reliability and Asset Management

Strategy of IOCL

by

Implementation of RBI & RCM

1

M&I Dept. - An extended arm of the refineries to improve reliability.

ASSET MANAGEMENT STRATEGY

• Asset management strategy attained importance

since long.

• Internationally, the first consolidated approach came

up in PAS-55.

• The approach covers all aspects of industry norms

from design, procurement, operation & maintenance.

• Asset integrity has primarily two major factors like

new facilities and upgrading integrity of old facilities.

• This paper will restrict on improving integrity of old

assets by implementation of RBI & RCM.

2

M&I Dept. - An extended arm of the refineries to improve reliability.3

Organizational Strategic Plan(Vision, Mission, Risk Management)

Asset Management Policy(Control of Asset Management )

Asset Management Strategy(Long-term Sustainable Strategic Plan)

Asset Management Objectives(Specific & Measurable Outcomes of Assets)

Asset Management Plan(Actions, Responsibilities, Resources & Timeline)

ASSET INTEGRITY

M&I Dept. - An extended arm of the refineries to improve reliability.4

WHAT IS RELIABILITY

Reliability - How much ?

By reliability we really mean availability of the system.

Of course, not compromising safety and

environmental integrity.

The required level of plant availability is set by overall

business needs.

Availability can be 100% only when reliability is 100%.

Therefore, it is a game of managing the risk for

competitive advantage.

Manage risk & reduce the surprises.

All failures are not equally bad. Manage only those

with higher consequences.

M&I Dept. - An extended arm of the refineries to improve reliability.5

WHAT IS RELIABILITY

In other words, maintenance effectiveness is not

only a measure of the effectiveness of the

maintenance department.

It measures how effectively everyone associated

with the asset is playing their part in doing whatever

is necessary to ensure that asset continues to do

what its user wants it to do.

For reliability, therefore, there must be an

inextricable bond between design, operation and

maintenance.

M&I Dept. - An extended arm of the refineries to improve reliability.6

WHAT IS RELIABILITY

The Bond of Reliability

D O

M

D O

M

D- Design

O - Operation

M - Maintenance

D O

M

Together we can, we will

M&I Dept. - An extended arm of the refineries to improve reliability.7

THE ROUTE TO RELIABILITY

The reliability of an asset can be improved by ensuring

following systems in place:

– to capture & retain the knowledge & wisdom

– Work management processes to exploit the

“Intellectual Capital” (IC).

The Reliability ultimately depends on

Sound design engineering practices

Good operation

Adequate maintenance

There is an inextricable bond between design, operation &

maintenance.

The key to reliability is by implementing RBI & RCM.

M&I Dept. - An extended arm of the refineries to improve reliability.

STRATEGIC INITIATIVES

• To improve the reliability of refineries, M&I has taken up a major initiatives

to implement Risk Based Inspection (RBI) and Reliability Centered

Maintenance (RCM) in all the 8 refineries.

• RBI caters to static equipments & piping and best suited for time

dependent failure modes.

• RCM is best suited for rotary, electrical & instrument items and can handle

random failure modes also.

• To ensure performance improvement both RBI & RCM are being

implemented in the same units, so that each and every equipment/ piping is

addressed to ensure improvement.

• The implementation is in two phases:

First phase is of 16 months to implement in 18 units in presence of

consultant

The second phase is of 24 months where remote support will be

provided by the consultant.

• The 18 units have been selected in such a way that we have a template for

each type of unit, so that multiplying in other units of refineries will be

easier.

M&I Dept. - An extended arm of the refineries to improve reliability.

UNITS UNDER RBI & RCM IMPLEMENTATION IN IOCL

Refinery Pilot Unit Second Unit

GR INDMAX TPS

BR FCCU CRU

JR FCCU LAB

HR CIDW HGU-2

MR AVU DHDT

PR OHCU DCU

PNC - NCU & Swing

DR SDU WHFU

BGR DCU MSQ

M&I Dept. - An extended arm of the refineries to improve reliability.

IMPLEMENTATION SCHEDULE OF RBI / RCM IN REFINERIES

10

07.07.14

07.07.14

02.07.14

30.06.14

05.07.14

11.09.14

22.09.14

01.09.14

15.09.14

25.08.14

30.06.14

08.09.14

Dec.14

Dec.14

M&I Dept. - An extended arm of the refineries to improve reliability.

Risk Based Inspection (RBI)

(Best suited for Static Equipment & Piping)

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M&I Dept. - An extended arm of the refineries to improve reliability.12

WHAT IS RBI ? RBI is a method for using Risk as a basis for prioritising

and managing the efforts of an inspection program.

In an operating plant, a relatively large percentage of the

risk is associated with a small percentage of equipment

items.

RBI permits the shift of Inspection & Maintenance

resources to provide a higher level of coverage on the

high risk items and an appropriate effort on lower risk

equipment.

M&I Dept. - An extended arm of the refineries to improve reliability.

PROBABILITY

CONSEQUENCE

RISK

INTERNAL

CORROSION

EXTERNAL

CORROSIONCRACKING

& OTHERS

Release of flammable/

Toxic material Release of

excessive pressure

Environment

damageProduction

loss

RISK ANALYSIS

M&I Dept. - An extended arm of the refineries to improve reliability.

RISK ASSESSMENT

RISK MANAGEMENT BY RBI

M&I Dept. - An extended arm of the refineries to improve reliability.

THE TRANSITION

M&I Dept. - An extended arm of the refineries to improve reliability.

SNAPSHOT – P&ID MARKING AS PER COLOUR CODE

M&I Dept. - An extended arm of the refineries to improve reliability.

SNAPSHOT – SYSTEM ID & COLOUR CODE

M&I Dept. - An extended arm of the refineries to improve reliability.

SNAPSHOT – CORROSION LOOP IDENTIFICATION

M&I Dept. - An extended arm of the refineries to improve reliability.

SNAPSHOT – DATA COLLECTED FOR CORROSION STUDY

Design Press., Design Temp., Operating Press., Operating Temp., Material of Const.,

PWHT, Year in Service, Insulated & Corrosion Circuit from PFD

M&I Dept. - An extended arm of the refineries to improve reliability.

CIRCUIT WISE CORROSION RATE FOR CRITICALITY

Circuit Line System Int. corr.

Mech

Int. Corr.

mm/yr

CUI Ext. corr. Ext.

Corr.

Rate

Ext. SCC

05-01-G 14 Feed sys General 0.025 Yes CUI CUI

05-01-H 10 Feed sys General 0.025 Yes CUI CUI

05-01-J 10 Feed sys General 0.025 No General 0.025

05-01-K 10 Feed sys General 0.025 No Oxidation 0.0125 Ext. SCC

05-01-L 6 Feed sys General 0.025 Yes CUI CUI

05-02-A 18 Reactor sys General 0.005 No Oxidation 0.0125

CUI corrosion rates will

be calculated by RBMI

package

Corrosion Rates decided based on:

Literature & Operating Parameters

Corrosion Expert

Validation by old readings

M&I Dept. - An extended arm of the refineries to improve reliability.

RBI EQUIPMENT DATA

M&I Dept. - An extended arm of the refineries to improve reliability.

RBI EQUIPMENT HISTORY & NDT DATA

M&I Dept. - An extended arm of the refineries to improve reliability.

RBI CORROSION STUDY

M&I Dept. - An extended arm of the refineries to improve reliability.24

Risk Based Inspection (RBI)

M&I Dept. - An extended arm of the refineries to improve reliability.

RBI CRITICALITY ANALYSIS

M&I Dept. - An extended arm of the refineries to improve reliability.26

Risk with Typical

Inspection Programs

Risk Using RBI Uninspectable Risk

LEVEL OF INSPECTION ACTIVITY

RISK

M&I Dept. - An extended arm of the refineries to improve reliability.

Reliability Centered Maintenance

(RCM)

(Best suited for Rotary, Instrument & light

Electrical items)

27

M&I Dept. - An extended arm of the refineries to improve reliability.28

ROLE OF RCM

• RCM provides simple, precise and easily understood

criteria for deciding technical feasibility of PM / PdM task (if

any) in the particular context.

• This means that PM / PdM tasks are only specified for

failures which really need them.

• This in turn leads to substantial reduction in routine work

loads. Less routine work also means that the remaining

tasks are done properly.

• This together with the elimination of counter productive

tasks leads to more effective maintenance.

M&I Dept. - An extended arm of the refineries to improve reliability.29

ROLE OF RCM

• RCM creates awareness in Maintenance professionals

regarding six patterns of failures.

Maintenance professionals, as such, comes to terms with

the reality of randomness after decades in bathtub.

• Maintenance professionals thus realise that the idea of age

related failures simply does not apply to random failures

(Pattern D,E,F).

• An awareness of these facts has led some organisations to

abandon the idea of PM altogether for failures with minor

consequences.

M&I Dept. - An extended arm of the refineries to improve reliability.30

A

C

D

E

F

B

M&I Dept. - An extended arm of the refineries to improve reliability.31

RCM - PROCESS OVERVIEW

STEP-1

RCM process determines the functions and associatedperformance standards of the assets in its presentoperating context.

• Output, Thru’put, Quality

• Safety & Environmental Integrity, Quality

STEP-2

RCM process identifies the ways in which the asset canfail to live up to these expectations (failed states).

M&I Dept. - An extended arm of the refineries to improve reliability.32

RCM - PROCESS OVERVIEW

STEP-3

Then follows FMECA (failure modes and effects criticalityanalysis), to identify all the events which are reasonablylikely to cause each failed state.

STEP-4

RCM process seeks to identify a suitable failuremanagement policy for dealing with each failure mode inthe light of its consequences and technical characteristics.

M&I Dept. - An extended arm of the refineries to improve reliability.33

RCM - PROCESS OVERVIEW

STEP-5

The RCM process provides powerful rules based on RCMdecision logic diagram and decides whether any failuremanagement policy is technically appropriate and worthdoing.

Failure management policy options include:

– predictive maintenance– preventive maintenance– detective maintenance– change the design or configuration of the system– change the way the system is operated– run-to-failure.

M&I Dept. - An extended arm of the refineries to improve reliability.34

RCM PROCESS OVERVIEW

Failure Management - Basics

A great strength of RCM is that it recognises that theconsequences of failures are far more important than theirtechnical characteristics.

In fact, RCM recognizes that the only reason for doing anykind of proactive maintenance is not to avoid failure perse, but to avoid or at least to reduce the consequence offailure.

M&I Dept. - An extended arm of the refineries to improve reliability.35

RCM PROCESS OVERVIEW

Failure Management – Basics

The consequence evaluation process also shifts emphasisaway from the idea that all failures are bad and must beprevented.

In so doing, it focuses attention on the maintenanceactivities which have most effect on the performance ofthe organisation, and diverts energy away from thosewhich have little or no effect.

It also encourages us to think more broadly aboutdifferent ways to manage failure, rather than toconcentrate only on failure prevention.

M&I Dept. - An extended arm of the refineries to improve reliability.

SCREENSHOT – HIERARCHY OF ASSETS

Hierarchy of Assets indicating plant, system &

equipment

M&I Dept. - An extended arm of the refineries to improve reliability.

ASSET HIERARCHY

M&I Dept. - An extended arm of the refineries to improve reliability.

SCREENING

M&I Dept. - An extended arm of the refineries to improve reliability.

RCM SCREENSHOT –RISK NUMBERS & FMEA

Assigning Risk Numbers for equipment

S-PoF (Safety probability of Failure)

S-CoF (Safety Consequence of Failure)

S-Risk (Safety Risk)

E-PoF (Environ probability of Failure)

E-CoF (Environ Consequence of Failure)

E-Risk (Environment Risk)

M&I Dept. - An extended arm of the refineries to improve reliability.

RISK ACCEPTANCE CRITERIA FOR PRODUCTION LOSS

M&I Dept. - An extended arm of the refineries to improve reliability.

RISK ACCEPTANCE CRITERIA FOR ENVIRONMENT

M&I Dept. - An extended arm of the refineries to improve reliability.

RISK ACCEPTANCE CRITERIA FOR SAFETY

M&I Dept. - An extended arm of the refineries to improve reliability.

RISK ACCEPTANCE CRITERIA REPUTATION

M&I Dept. - An extended arm of the refineries to improve reliability.

FMEA – Criticality Assessment

M&I Dept. - An extended arm of the refineries to improve reliability.

LOGIC TREE FOR CONSEQUENCE ANALYSIS

M&I Dept. - An extended arm of the refineries to improve reliability.

LOGIC TREE FOR TASK SELECTION

M&I Dept. - An extended arm of the refineries to improve reliability.

CONCLUSION

Result of systematic and scientific asset management

systems by implementation of RBI & RCM will deliver

• Improved reliability of units.

• Improved asset integrity.

• Improvement in Run length.

• Improvement of on-stream factor.

• Improvement in Profitability.

• Reduction in Repair & Maintenance cost.

M&I Dept. - An extended arm of the refineries to improve reliability.

THANK YOU

48

M&I Dept. - An extended arm of the refineries to improve reliability.49

THIRTEEN ELEMENTS OF PAS-55

Element No. Subject

1 HSE and risk management system

2 Quality Management System

3 Asset Production Operations

4 AIMS Leadership

5 Engineering and Project Management

6 Maintenance and Reliability

7 Risk Management

8 Knowledge Management

9 Measurement and Continuous Improvement

10 Human Resources

11 Procurement

12 Information Systems and Documents

13 AIMS organization

M&I Dept. - An extended arm of the refineries to improve reliability.50

There are basically two approaches:

• Qualitative approach :

In this approach each unit or section of unit is analysed as per

risk based methodology. The high risk units or sections are

taken up for detailed inspection or further detailed quantitative

study.

This will be done to prioritize units for quantitative RBI

implementation.

• Quantitative approach :

In this approach each equipment is analysed as per risk based

methodology and the high risk equipment are identified for

thorough inspection. The inspection methodology is also

derived based on calculations.

WHAT IS RBI ?

M&I Dept. - An extended arm of the refineries to improve reliability.51

CONSEQUENCE CATEGORY - RBI has categorized failure ofpressure containing equipment into following four undesirableeffects.

– Flammable events

– Toxic events

– Major environment loss

– Business interruption loss.

WHAT IS RBI ?

(QUANTITATIVE APPROACH)

M&I Dept. - An extended arm of the refineries to improve reliability.52

Consequence Overview

Estimate the release rate or the total mass available for

release

Determine if the fluid is released in a rapid manner or

slowly

Determine if the fluid disperses in atmosphere as a liquid

or gas

Estimate the impacts of any mitigation system

Estimate the consequences.

WHAT IS RBI ?

(QUANTITATIVE APPROACH)

M&I Dept. - An extended arm of the refineries to improve reliability.53

Likelihood Overview

Frequency ADJUSTED

= Frequency GENERIC * FE * FM

Where

– FE is equipment modification factor

– FM is management system evaluation factor

– Frequency GENERIC is generic failure frequency

WHAT IS RBI ?

(QUANTITATIVE APPROACH)

M&I Dept. - An extended arm of the refineries to improve reliability.54

E D C B A

CONSEQUENCE CATEGORY

LIK

EL

IHO

OD

CA

TE

GO

RY

5

4

3

2

1 12

6

25

3

23

24

4

20

16

11 7

13

17

21 18 15 10

121922

14 9 5

8

M&I Dept. - An extended arm of the refineries to improve reliability.55

Inspection Program Options for Influencing Risk

Change inspection frequencies (when)

Change inspection scope/thoroughness (what)

Change inspection tools/techniques (how)

Change inspection practices (who)

WHAT IS RBI ?

M&I Dept. - An extended arm of the refineries to improve reliability.56

The areas of high risk and low risk may change due tochanged priorities of inspection and testing.

Focus will be made on new high risk areas. This will be acontinuous process.

As the refining margins are reducing all organizations are

making their best effort to find new ways of controlling or

reducing operational risks and associated costs.

WHAT IS RBI ?