Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk...

29
© Copyright Meridium 2010 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

Transcript of Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk...

Page 1: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010

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

Page 2: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 2

2

Agenda

• Introduction

• Achieving Value with RBI

• Risk Based Mechanical Integrity Work Process

• Examples of Value Achieved

Page 3: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 3

3

Operator’s Obligation to Stakeholders

• Ensure Safe, Sustainable Operation – Regulatory Compliance – Safety – Environmental Protection

• Maximize Profitability – Optimize Equipment Reliability – Improve Plant Availability

Page 4: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 4

Property Damage Losses Exceeding $10MM

Page 5: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 5

Property Damage Losses Exceeding $10MM

Page 6: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 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

Page 7: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 7

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

Page 8: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 8

8

Reality and Response

Business Pressure

Low tolerance for

failures

Risk Based Asset

Integrity Program

Page 9: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 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

Page 10: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 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

Page 11: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 11

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

Page 12: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 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

Page 13: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 13

13

Observations of Time Based Programs

Optimum Inspection Extent

Page 14: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 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

Page 15: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 15

Value from Increased Availability

• Shortening the turnaround Duration

• Reduced number of outages due to

unanticipated failures

Page 16: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 16

MECHANICAL INTEGRITY WORK PROCESS

Page 17: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 17

Asset Taxonomy Event History Asset Criticality

Core Analysis Recommendation Management

Work Process Steps

Define Mitigation Strategy

Execute Strategy

Evaluate and Communicate

Results

Collect or Update

Asset Data

Identify Potential

Degradation Mechanisms

Perform Risk Analysis

Page 18: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 18

People Process

Inspection Specialist Define Components

•Inspection Specialist •Process Specialist

Collect Design and Process Data

Inspection Specialist Review Inspection /Repair History and Assign Inspection Confidence

Inspection Specialist Field Verify Equipment

People Process

Corrosion Specialist

Define Corrosion Loops

Corrosion Specialist

Define Integrity Operating Windows

Corrosion Specialist

Define Degradation Mechanisms

People Process

Risk Analyst Calculate Risk

Risk Analyst Determine Production Loss Consequence

Risk Analyst Review and Validate Risk Results

Risk Analyst Define Acceptable Risk

People Process

•Inspection Specialist •Corrosion Specialist •Risk Analyst

Define Inspection Strategies

Inspection Specialist Group and Select Equipment for Inspection

•Inspection Specialist •Corrosion Specialist

Develop Recommendations

Inspection Specialist Develop Activity Work Packages

Team Leader Plan and Prioritize Shutdown Inspections

People Work Process Item

•Inspection Specialist •FFS consultant

•Evaluate Inspection Results •Make Recommendations to resolve conditions that do not meet acceptance criteria

People Process

•Inspection Specialist •Team Leader

Manage and Perform Inspections

Page 19: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 19

CASE STUDIES – VALUE ACHIEVED

Page 20: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 20

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

Page 21: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 21

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

Page 22: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 22

Example of Value Achieved

Page 23: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 23

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%

Page 24: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 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

Page 25: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 25

25

Case Study - Value Achieved

2003

2007

Expected after 2008 TAR

Ris

k - $

per

Yea

r

Asset Count

Cumulative Risk over Time

Page 26: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 26

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

Page 27: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 27

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

Page 28: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 28

28

Case Study - Value Achieved

0

100000

200000

300000

400000

500000

600000

RBI (Today's Dollars)

Traditional (Today's

Dollars)

RBI Implementation

Costs (Today's Dollars)

Page 29: Risk Based Inspection A Key Component ... - API … Risk... · Risk Based Inspection ... • Risk Based Mechanical Integrity Work ... and reduce the inspection costs by using a risk

© Copyright Meridium 2010 29

Questions?