Brian G Hudson ABB Consulting OPERA London October 30th ... Introduction to ABB Consultancy Why manage ageing assets? UK Regulation and General Principles Managing Risk of Ageing Machines

Title

© ABB Group November 5, 2012 | Slide 1

Ageing Assets - Managing Risk Rotating Machinery

Brian G Hudson – ABB Consulting – OPERA– London October 30th 2012

Agenda

Introduction to ABB Consultancy

Why manage ageing assets?

UK Regulation and General Principles

Managing Risk of Ageing

Machines Failures

Electrical Motor Reliability

Obsolescence

People, Competence and Knowledge

Examples of Good Practice

Conclusions


Title


Background to ABB Consulting


ABB Group

130,000 employees in about 100 countries

$38 billion in revenue (2011)

Formed in 1988 merger of Swiss and Swedish engineering

companies - Asea and Brown Boveri

Predecessors founded in 1883 and 1891

Publicly owned company with head office in Switzerland

ABB Consulting Locations and Selected Clients

Title


Why manage Ageing Assets?


Why do you need an Asset Life Strategy?


Asset Life

Strategy and

Planning

Financial

Planning &

Budgets No

Surprises

Stakeholder

Governance

Reputation

Licence to

Operate

Due

Diligence &

Investment

Buying?

Selling?

Regulatory

Compliance

Compliance

with Law

Self

Regulation

Title


Managing Ageing Assets UK Regulation and General Principles


Ageing – UK HSE definitions

“Ageing is not about how old the equipment is. It’s

about what is known about its condition, and how

that’s changing over time”

HSE Research Report RR509 - ‘The plant ageing

guide’

“Ageing is…where a component suffers deterioration

and damage (usually, but not necessarily, associated

with time in service) with an increasing likelihood of

failure….

HSE Research Report RR823 – ‘Plant Ageing Study’

© ABB Group November 5, 2012 | Slide 9 UK Health and Safety Executive

OSHA CFR 1910.119 (Process Safety Management)

Quotes from standard

An effective process safety management program requires a

systematic approach to evaluating the whole process

Operators need to develop the necessary expertise,

experiences, judgment and proactive initiative within their

workforce to properly implement and maintain an effective

process safety management program

Operators need to ensure that the design and construction along

with the testing, inspection and operation are still suitable for

the intended use. Where the process technology requires a

design which departs from the applicable codes and standards,

the employer must document that the design and construction is

suitable for the intended purpose.


What reduces asset life?


No. of Failures/

Accumulated

Damage

Time

Initial

Operation

Mature

Stage

Ageing

Stage

End of Life

Stage

Examples of factors that reduce asset life

Poor design quality

Poor standards

of installation

Poor control of

modifications

Operating outside

design limits

Obsolescence

Failure to manage

deterioration of

equipment and systems

Solving these problems is reactive!

Locations reflect

the impact, not

when initiated.

What extends asset life?


No. of Failures/

Accumulated

Damage

Time

Initial

Operation

Mature

Stage

Ageing

Stage

End of Life

Stage

Examples of Factors that extend asset life

Maintenance

to quality

standards &

practices

Effective testing

& inspection of

equipment Quality of spare

parts & repairs

Correct control of

operating

parameters

Managing Deterioration

of Equipment &

Systems

Locations reflect

the impact, not

when initiated.


UK Health and Safety Executive Key Performance Programmes

Key Programme 1 (KP1) - Run 2000 to 2001

Investigated all reported offshore hydrocarbon releases and analyzed the size, type and causes of the releases to identify ways of reducing the number of releases

Key Programme 2 (KP2) - Initiated in 2003

Addressing the unacceptable accident statistics from deck and drilling operations.

Key Programme 3 (KP3) - Run from 2004 to 2007

Focused on current standards of Asset Integrity defined as the ability of an asset to perform its required function effectively and efficiently while protecting health, safety and the environment

Key Programme 4 (KP4) – launched in July 2010

To determine the extent to which asset integrity risks associated with ageing & life extension are being managed effectively by duty holders


Management

Reporting & Auditing

KPI’s Leading & Lagging

Indicators

Learning form Incidents &

Near Misses

Incident Investigation &

action tracking

Asset Performance

Monitoring

Defect Reporting System

Audit programme

Equipment Ageing

Assessment

Asset Integrity Management

Plan to identify critical plant

Risk assessment

Hazard Identification versus

Ageing

Technical Safety Review –

Critical equip

Justification for continued use,

obsolescence

Replacement Policy for

CRITICAL plant

Inspection – ageing

mechanisms

Focussed Inspection, RBI, RCM,

FMEA, etc

Corrective action plan and

tracking

Organisational &

Competence

Organisational Structure &

Responsibility

Communication –

internal/external

Regular reviews

Continuity Plans

Impact on organisation and

Human Factors

Contract 3rd party standard

setting

Competency In-house,

contractor

Organisational responsibility

for MOC.

Procedures /

Systems

Asset Integrity Management

Policy

Asset Register and actions at

correct intervals

Design Standards / Code of

Practice updates

Maintenance & Inspection

Systems interfacing with

Operations

Operational Procedures &

Maintenance Management

Interfaces

Operational Inspections

Management of Change (MOC)

ABB Ageing Plant Safety Management & Risk Control Summary

COMAH - Ageing Plant

Operational Delivery Guide


UK HSE Managing Ageing Assets People, Systems and Organisation

UK Health and Safety Executive

Organisations

Demonstration that the organisation

is aware of ageing challenges at all

levels, incl. senior management

Demonstration that workforce has

adequate experience, competence

and training to manage ageing

issues

Definition of key responsibilities,

management structure,

communications and resources

Highlight of management measures

that differentiate life extension from

day-to to-day problem shooting

HSE KP4 Launch Ardoe House Aberdeen 28th July 2010

‘Successful Health and Safety Management’ HS(G)65


Ageing Assets require an Integrated Approach

Co

nstru

ctio

n

Insp

ecti

on

Emergency

Response &

Preparedness

Process

Safety/

Integrity

Leadership

& Culture

Process

Hazard

Analysis &

Review

Operating

Procedures

& Practices

Pre Start-up

Safety

Management

of Change

Safe

Systems of

Work

Process

Safety

Indicators &

Information

Audit &

Review of

Integrity &

Compliance

Management

of

Contractors

Employee

Training &

Competence

Assurance

Incident

Investigation

Plant &

Equipment

Integrity

Effective

Systems

World

Class

Leadership

of Safety &

Integrity


Topsides Asset Life Issues for an Offshore Installation Key items found during ABB Studies It’s the same Onshore as Offshore

Equipment projected as not fit for purpose

Increased congestion of equipment and removal of redundant equipment

Replacement of obsolete equipment

Operation outside original design or lack of turn down capacity

Reducing equipment and key system reliability

Need to upgrade Safety, Escape and Fire to meet latest standards

Newly emerging deterioration mechanisms, i.e.changes in process fluids, e.g. sand, H2S

Integrity of minor structures (handrails, walkways, ladders)

Integrity of utility systems (air, nitrogen, HVAC, cooling water etc.)

Electrical power limitations affecting current and future operations

Competencies as against ageing workforce retires

Leaner organisations with increased reliance on sub-contractors

Lack of clarity for ownership of knowledge between operator and sub-contractors

Loss of ‘Corporate Knowledge’ and ‘unfriendly’ documentation systems

Compliance with current and future environmental legislation

Dep

en

dab

le A

ssets

People

Systems

Title


Managing Risk Machine Failures


Different Types of Equipment Different Ways of Managing Risk


HIGH HAZARD, PRESSURE

CONTAINING EQUIPMENT

High Consequences

Low Likelihood

Fewer, but complex failure modes.

DETERIORATION MECHANISM LED

APPROACH

Risk Management by managing

deterioration (operations or

environment) and pre-failure detection

by inspection and monitoring (Focussed

Scheme of Examination)

Complex nature of most deterioration

mechanisms dictates bespoke solutions

OTHER EQUIPMENT ON HIGH HAZARD

DUTIES

Lower Consequences

Higher Likelihood

Wide range of complex failure modes.

FAILURE MECHANISM LED APPROACH

Risk Management by preventing failures

(quality control and operations) and pre-

failure detection by inspection,

performance and condition monitoring

(Maintenance Policy)

Risk from most failures can be managed

generically by following good practice

Age Related Failures of Rotating Machines Emerging Risks

Fatigue

Stress and Cyclical Load

Creep

Stress and Temperature

Corrosion

Mechanism and Materials

Potential Areas

Nozzles

Couplings

Rotor Blades

etc., etc.


Compressors Failures due to Ageing


Examples of Actions Failures Due to Ageing


Scenario that requires no further action

Rotor blade failure – If failed would not breach containment, shutdown on

vibration trip. Protection system must be proven to have sufficient and

suitable integrity before disregarding the scenario.

Scenario that requires further action

Coupling failure – Potential failure mode fatigue. On failure could eject

debris causing secondary damage/personal injury. Investigate design,

operational history, maintenance/inspection history, etc. If failure credible

identify mitigation i.e. specific targeted inspection / change out policy.

Understanding how the equipment has been operated and maintained in the

past will be key to allowing it to operate into the future

Generally, understanding the cause rather than the effect is key

Bad misalignment leads to high nozzle stresses which ultimately leads to

fatigue failure. Bad misalignment could come from base plate corrosion.

Applying a Risk Matrix – Policy Decisions

LIKELIHOOD

C

O

N

S

E

Q

U

E

N

C

E

S 1

2

3

4

5

1 2 3 4 5

COMPRESSOR

FAILS AND

ROTOR

DESTROYED

Scales from

assessments using

word models,

categories and

similar quantified

assessments

BUY SPARE

ROTOR

COMPRESSOR

FAILS AND

ROTOR

DESTROYED

Business Risk

Both

INSTALL SIL 2

PROTECTION

COMPRESSOR

FAILS WITH

MINIMUM

DAMAGE

Safety Risk

Title


Managing Risk from Ageing Electrical Motors


Motor Reliability

MOTORS FAILURES

POWER > 0.5 MW

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bearings Stator Faults Rotor Faults Others

% F

AIL

UR

ES

Offshore Onshore

Failure Data from

Condition Monitoring Methods, Failure Analysis for High Voltage Motors in Petrochemical Industry - OV Thorsen & M Dalva - IEE 1997

A Survey of Faults on Induction Motors in Offshore Oil Industry, Petrochemical Industry, Gas Terminals and Oil Refineries - OV Thorsen & M Dalva - IEE 1995

Failure Impact = Failure Rate x Time to Repair

Minimum Impact assumes spares

Maximum Impact assumes no spares

Electric Motors - Impact of Failure

FAILURE IMPACT

MOTORS > 0.5 MW

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Bearings Stator Faults Rotor Faults

FA

ILU

RE

IM

PA

CT

MINIMUM IMPACT MAXIMUM IMPACT

ALL FAILURES - EXCLUDING OTHERS

MOTORS > 0.5 MW

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bearings Stator Faults Rotor Faults

% F

AIL

UR

ES

Failure Data from

Condition Monitoring Methods, Failure Analysis for High Voltage Motors in Petrochemical Industry - OV Thorsen & M Dalva - IEE 1997

A Survey of Faults on Induction Motors in Offshore Oil Industry, Petrochemical Industry, Gas Terminals and Oil Refineries - OV Thorsen & M Dalva - EE 1195

Title


Managing Risk Obsolescence


Obsolescence

Mainly affects:

Rotating equipment

Electrical equipment - i.e. switchgear

Instrumentation

Control systems and software


25 years old, but the design dates

from the early 1970s.

Obsolescence – do we really need to replace ?

How reliable is the equipment and is it getting less

reliable as time passes ?

What are failures costing in terms of lost production

and is this likely to get worse ?

Can the equipment be readily maintained ?

Are replacement parts and assemblies readily

available or are they easily reverse engineered ?

Are there companies supporting the aftermarket with

spares and overhaul capability ?


$$$ Operating v $$$ Replacement

Title


Managing Risk for Ageing Assets People, Competence and Knowledge


An Integrated Approach Some Big Issues that don’t appear in CAPEX

People and Competency

Knowledge Management

Use of 3rd Parties


Age and competency of the workforce

Age profile - loss of highly experienced personnel.

Succession planning and knowledge retention for key

operating and maintenance roles.

Application of new technologies - investment in digital

infrastructure

Telemetry + high speed fibre optic links

Remote control of equipment and processes -

integrated control rooms.

Fewer persons + different competencies, de-manning &

relocation onshore, changes in working methods.


More effective operation & reduction in operating costs.

Quality of historical records

Retaining corporate knowledge for the

extended life cycle.

30 year old information and data

needs to be kept for a further 30 +

years.

Incompatible and incomplete records

with significant gaps.

Moving to software based document

management systems.

Loss of data when systems are

changed.

No longer able to read electronic data

in old formats.


A detailed understanding of what information needs

to be retained + a plan to assemble & maintain it.

Dependence upon 3rd Parties

Dependence upon on 3rd Parties seems

to be increasing

New operators - leaner organisations.

On-going operation increasingly

dependent upon sharing of information

with and between third parties.

Agreement on:

ownership of knowledge, records and

maintenance histories.

extends beyond the duration of the

contract.


Title


Some Examples of GoodPractice Managing Risks from Ageing



Core Best Practice Effective Management, Investment Profiles & Actions

Rotating Equipment Some Hidden Risks from Ageing

Key ‘Hidden’ Threats

Erosion and Corrosion

Operational Excursions – Pressure and Temperature

Fatigue

Creep

Understand the Risks and Manage/Mitigate them

Adopt modern standards for machine protection, monitoring and

control

‘Risk Based Inspection’ studies often deliver a more pragmatic

approach than FMEA or similar when looking at ageing issues.

Is the main driver safety or reliability or both?

The regulator can be harder to please than other

stakeholders.


Rotating Equipment Good Practice for Ageing Assets

Look at the system – machine, ancillaries, such as lubrication or

seal support systems, surge protection etc. Are they all to current

best practice?

Vibration and Axial Position Alarms and Trips

Control of Operation Conditions – keep within design envelope

and record excursions – analyse past history, if you have it!

Beware of changes to the Process Fluids, past present and future

Fatigue and Creep relate to temperature and stress

Understand historical stresses and temperatures, if you can,

if not control the future!

Identify high stress or temperature areas and deterioration

mechanisms - Risk Based Inspection

Make sure that they are within limits now and will continue to

be so

Machine train alignment, Machine Nozzle Loads and

Pipework Supports


Title


Conclusion Brian G Hudson – ABB Consulting – OPERA– London October 30th 2012

Conclusions

Managing Ageing Assets

Its not just about Equipment and CAPEX

Its also about People, Organisation and Systems

Rotating Equipment

Its about understanding the risk and mitigating it.

Operations and Maintenance, now and in the past are critical

Electrical , Control and Instrumentation

Its about understanding what’s obsolete

But also is it cheaper to carry on maintaining it


“The lucky man

is the one

who knows how much

to leave to chance.”

CS Forrester

“The Happy Return”

Risk Management


Brian G Hudson

Principal Lead Consultant

ABB Consulting UK

Phone: +44 1642 372131

Mobile: +44 7711 771307

email: [email protected]

Documents

Brian G Hudson ABB Consulting OPERA London October 30th ... Introduction to ABB Consultancy Why manage ageing assets? UK Regulation and General Principles Managing Risk of Ageing Machines