Change Management - Overcoming Challenges to Implementation

Pete Flatten

Topics

• What is Change Management? – Process safety management – Non-PSM change management

• Lean Process – Kaizen

• Making it stick

Understanding the Issue • Process Safety Management (29 CFR 1910.119)

– Objectives: • Prevent unexpected releases of toxic, reactive, or flammable

liquids and gases • Create a safe and healthful workplace (inside the fence line)

• This regulation is specific and does not apply to most situations involving change (for now)

• Most of these “Management of Change” programs face a variety of challenges – Too similar to PSM MOC – Too broad – Too slow – The wrong people developing and implementing them?

Encana’s Development Process

• Encana’s Management System (Ethos) mandated a “MOC process” for all applicable work.

• The PSM MOC process was too cumbersome for most of the changes that were occurring.

• A group of Lean practitioners were assembled to facilitate a solution.

• Facilitated by EHS, Operations led • Held a Kaizen event over 2 days to determine the

scope of the problem and a recommended solution.

TOOLS:

Process

Project & Change Management

Statistical Analysis

Visual Controls

TIMWOOD is the acronym that describes the 7 different kinds of waste. The goal is to identify where TIMWOOD is to ELIMINATE the root causes.

Lean @ Encana means :

Kaizen

Identify the problem/opportunity and detail the business case and problem statement in the Project Charter. Allocate sufficient resources.

DEFINE

Baseline the current performance and customer specifications. Collect of all potential variables/inputs impacting the overall output. MEASURE

Quantify and link the critical variables to the customer demand. ANALYZE

the plan is in place to maintain the benefits CONTROL

IMPROVE Pilot solution to confirm critical variables impact and implementation risks have been mitigated

Set a plan is in place to maintain the benefits

The DMAIC methodology provides a flexible but consistent problem solving approach that can be applied through the business.

A Mindset

Continuous improvement methodology

Toolset to improve thinking and processes

Structured approach to eliminate waste and variation

TIMWOOD

Transportation

Inventory

Motion

Waiting

Overproduction

Overprocessing

Defects

Method Measurement

Materials

Quality

People

Cause EffectMachine

Environment

Fishbone Diagram

191715131197531

0.4

0.3

0.2

0.1

0.0

Sample

Propor

tion

_P=0.1367

UCL=0.2709

LCL=0.0025

1

1

Tests performed with unequal sample sizes

P Chart of D of I Errors: No Name USA

252219161310741

6.50

6.25

6.00

5.75

5.50

Observation

Individ

ual Va

lue

_X=5.969

UCL=6.346

LCL=5.59111

1

I Chart of Rig Release to Spud

Control Charts Value Stream Mapping

Date: 01/16/2008

Failure Severity Occurrence Detection RPN Mitigation Accountable DueCrew do other things in addition to consolidation or expansion. If emergency occurs, or schedule changes, we may not have the ability to react. Can delay expansion.

5 5 1 25

Dedicate crews to "other" work; Keep crews on bid work. Use a "roustabout" crew on T&M for these variable situations. Develop and execute plan. Jeff C. 02/15/2008

Bid specs are missed - higher costs (go on T&M)

8 7 10 560

Review RFP process and understand what type of details they'd want to see for accuracy. Meeting with potential bid winners prior to discuss scope and detail of work. Add feedback loop process after bid is complete. Perform audit of process after 90 days. Jerry 02/15/2008

Inability to "push" crews to get project done in a timely manner when the need for short cycle time is required.

8 7 5 280

Implement "bonus for early completion" when needed. Establish bonus rate / amounts (or T&M rate) during RFP discussion with contractors if EnCana needs the project done in an earlier time frame Jeff C.and Jerr 02/15/2008

Teamwork between companies decreases - leading to longer cycle times and loss of qualified help

8 9 3 216

Direct contractors to charge other contractors when their equipment or materials, etc. are needed. Communicate during implementation of bid process with contractors. Jeff C. 02/15/2008

Companies have negative feeling - negatively disrupting EnCana's construction- longer cycle times, public image, etc.

9 2 2 36

No drop in per-AFE costs 1 1 1 1New contractors to program have more informational requirements. EnCana doesn't have the staff to support - delays in completion time and we incur additional costs due to T&M charges

8 3 2 48

Quality suffers due to focus on cost control to stay under bid price 7 5 2 70 Develop scorecard tied to incentives.

Design incentive structure prior. Bonnie 02/15/2008

Not enough work for crews to stay busy on bid work - contractors pull out - not available to do EnCana work - delays and additional costs.

7 1 3 21

Process: allow contractors, when bid work is not available, allow them to do roustabout T&M work to keep busy. Communicate with contractos. Jerry and Jeff C02/15/2008

0

FMEA

Define There are basically three types of “change” that occur in the field (workplace): 1. When you are performing normal, day-to-day work such

as changing out a tool (i.e. a 24” wrench for a 36” wrench), changing who is going to swing a hammer, having a regular shift change of employees or contractors, etc., or

2. When you are dealing with a qualifying change within the fence of a PSM facility, or

3. The stuff in-between

Define- Operational Definitions

Anything not in like-kind that deviates from established process (Including: Safety Issue, affects to other operations, changes to P&ID(s), changes forced by regulations, emergencies halting operations)

Anything not in like-kind being added to the field for first time that results in change in safe operating limits and/or safety system

MOC “Light” Full PSM MOC Regular” work – No MOC

In Scope Out of Scope Out of Scope

Anything in like kind and/or existing design/process

Kaizen Team established definitions for “change” to focus scope of event.

All groups affected by MOC Light

Affected by full MOC • Production, Facilities & Construction Not affected by full MOC • Drilling, Completions, & Location

Construction

Examples of when a MOCL is needed

• Anything not in like-kind that deviates from established process – Deviating from a Standard Operating Procedure

• Safety Issue – Want to temporarily operate outside of current safety

parameters/practices • Affects other Operations

– By adding another engine we will need to update an environmental permit

• Changes P&ID – Modifying an electrical system diagram

• Regulations forcing change – DEQ changes a permit that results in Encana changing our

procedure/equipment • Emergency / temporary change

– PLC shorts out, need to bypass it and run equipment with generator

Measure • Reviewed OSHA operational definition. • Reviewed internal process: What do we do?

– Variable by team/person – A similar process for non PSM-MOC was begun in 2012

but is not currently used or fully implemented • “Didn’t know MOC form existed” • Process was not communicated

– Wind River uses the IMS system for some MOC issues • Wind has a dedicated MOC Coordinator

– MCBU Drilling group is piloting “light” version • Reviewed external processes: What do others do?

– Systems for BP, Conoco, Devon, and Chevron were reviewed

– No system for non-PSM MOC was found externally

Analyze: Root Cause Analysis

Improve

Making It Stick

• What is the reputation of your implementers? • According to PayScale's most recent survey,

employee turnover rate among Fortune 500 companies is greatest in the IT industry.

• TechRepublic Oct 2013

13

Barriers to Empowerment

Source: Reprinted by permission of Harvard Business School Press. From Leading Change by John P. Kotter. Boston, MA. 1996, p. 102. Copyright © 1996 by the President and Fellows of Harvard College, all rights reserved.

Control - Making It Stick

• Field employee and “Responsible Person” buy-in is essential

• Operations owns it • KISS principle at work

– Shorter approval times – Affected parties better informed – Better close-out percentage

• Continuous attention and improvement

December 2-3, 2014