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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
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Agenda
• Introduction
• Achieving Value with RBI
• Risk Based Mechanical Integrity Work Process
• Examples of Value Achieved
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Operator’s Obligation to Stakeholders
• Ensure Safe, Sustainable Operation – Regulatory Compliance – Safety – Environmental Protection
• Maximize Profitability – Optimize Equipment Reliability – Improve Plant Availability
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Property Damage Losses Exceeding $10MM
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Property Damage Losses Exceeding $10MM
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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
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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
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Reality and Response
Business Pressure
Low tolerance for
failures
Risk Based Asset
Integrity Program
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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
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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
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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
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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
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Observations of Time Based Programs
Optimum Inspection Extent
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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
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Value from Increased Availability
• Shortening the turnaround Duration
• Reduced number of outages due to
unanticipated failures
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MECHANICAL INTEGRITY WORK PROCESS
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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
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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
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CASE STUDIES – VALUE ACHIEVED
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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
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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
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Example of Value Achieved
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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%
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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
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Case Study - Value Achieved
2003
2007
Expected after 2008 TAR
Ris
k - $
per
Yea
r
Asset Count
Cumulative Risk over Time
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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
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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
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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)
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Questions?