Stork Technical Services

Organisational integrity
Module 1: Introduction AM & Organisational Integrity
Chemical

Power

Oil & Gas

Jos Van der Aelst

Principal Consultant Asset Management
Jos.vanderaelst@stork.com
1 Organisational integrity 0032 499 98 61 00
Integrity?
Integrity is the quality or state of being:
complete; unbroken condition; wholeness; entirety
unimpaired; perfect condition; soundness
sound moral principle; uprightness, honesty, and sincerity

2 Organisational integrity
 Why organisational integrity ?

TESTIMONIAL OIL & GAS OPERATORS

The key success factor in a companys ability to operate safely and

efficiently is ensuring that every individual with a stake in asset integrity
truly understands the core concepts involved in effective integrity
management and how their actions and decisions can have a decisive
impact.

3 Organisational integrity
 Module 1
Asset Management (AM)
Module 2

Introduction AM &
Risk Management
Organisational integrity

Module 4
Organisational capabilities
Module 3

AM Policy & AM
AM Processes AM People AM Means
Strategy Organisation

Module 5

Asset Activity Cycle

Design,
Concept & Operate &
purchase & Delivery Dismantling
Business case Maintain
construction

4 Organisational integrity
Module 1: Introduction AM & Organisational
Integrity
Why Asset Management

Asset Management introduction

An Asset Management model/system

The importance of organisational integrity in Asset Management

Building organisational integrity

5 Organisational integrity
Module 1: Introduction AM & Organisational
Integrity
Why Asset Management

Asset Management introduction

An Asset Management model/system

The importance of organisational integrity in Asset Management

Building organisational integrity

6 Organisational integrity
Manage your Assets in order to

- Sea Gem 1965

- Alexander Kielland 1980
- Ocean Ranger 1982
- Piper Alpha 1988
Prevent - Petrobras P-36 2001
incidents - West Atlas 2009
- Deepwater Horizon 2010

-
- Chernobyl 1986
- Fukushima 2011
-

Source; Never Say Never Again Derek Park

7 Organisational integrity
... but also Manage your Assets in order to

Be the
Grow technological
front-runner
Bring
competitive
advantage

Be sustainable,
Realise value, now profitable

and in the future

8 Organisational integrity
Some other challenges
The world changes:
speed , complexity and uncertainty
Pressure of shareholders to improve the results
Health and safety
Environment
Increased costs of energy
Legal and Compliance
Increased cost for maintenance and
changes
overhauls
Industrial rationalization
Global capacity versus
Increased competition decreased growth or
decreased demand.
Technical evolutions
Pressure to use Asset to the
eSolutions maximum

Hiring best people

Increased choice of customer
Knowledge management

The way you manage your assets must

9 provide answers on these challenges
Organisational integrity
Module 1: Introduction AM & Organisational
Integrity
Why Asset Management

Asset Management introduction

An Asset Management model/system

The importance of organisational integrity in Asset Management

Building organisational integrity

10 Organisational integrity
Asset Management a definition
Asset management is simply the optimum way of managing assets
to achieve a desired and sustainable outcome. (PAS 55-1 Publicly
Available Specification)

optimum: Cost / Benefits: Risk based (highest value decision)

Integral: Integral process, not only limited maintenance

Managing: managing conditions, performance, by executing systematic and

coordinated activities and practices

Desired outcome: performance, cost and risk exposures (availability, efficiency,

quality, longevity and regulatory/safety/environmental compliance)

Sustainable: not only short term but long term perspective (Asset Life time
approach whole life)

Company strategy: Asset Management part of the organizational strategic plan

11 Organisational integrity
Asset management concept
Concept & Asset
Business Case
activity
cycle
Design, purchase,
construction

Delivery/
commissioning
Supply chain cycle

Manufacture
Inbound Outbound
Suppliers Customer
logistics Operate logistics
& maintain

Dismantling

12 Organisational integrity
Overall Asset Management Goals
Drivers for business values

13 Organisational integrity
Module 1: Introduction AM & Organisational
Integrity
Why Asset Management

Asset Management introduction

An Asset management model/system

The importance of organisational integrity in Asset Management

Building organisational integrity

14 Organisational integrity
Delivering AM goals by

15 Organisational integrity
 Asset Management Governance

Risk Management

Criticality Analyses
Stakeholders &
Asset strategies &
Values
Concepts
Strategic analysis
Compliance Concepts
Goals
LT/ MT Planning
Asset Budget
Concept Project portfolio
AM
Management
Policy & AM
Execution of Asset
Strategy Plans Concepts and Plans
Efficiency
Asset
Quality
AM Service
Analysis & Providing
Improvements
AM
Failure & Compliance
Analysis Performances Performance &
Condition
Improvement actions
Data & Recording
Mngt Review
Auditing

AM AM AM
Organization People Infrastructure
16
Module 1: Introduction AM & Organisational
Integrity
Why Asset Management

Asset Management introduction

An Asset management model/system

The importance of organisational integrity in Asset Management

Building organisational integrity

17 Organisational integrity
 Organisational integrity in Asset Management ?

- Sea Gem 1965 Sr Management failure to take lead in seeking

- Alexander Kielland 1980
solutions (to safety process issues) and
- Ocean Ranger 1982
- Piper Alpha 1988 ensuring a response

- Petrobras P-36 2001 Failure to respond effectively to a

- West Atlas 2009 deteriorating safety situation
- Deepwater Horizon 2010 Misperception of the hazard

Lack of investment
-
- Chernobyl 1986 Widespread tolerance of non-compliance with

- Fukushima 2011 basic safety rules

- Lack of process safety culture

Culture where production and budget

compliance where recognized and rewarded

before anything else

18 Organisational integrity
From Asset Integrity to Organisational integrity
Sustainable PERFORMANCE, EXPENDITURES & RISKS

Integrity of Assets

Predictability of Asset integrity

Management of Assets

Understanding, visibility & traceability of Asset Management

Structure & System of Asset Management

Integrity of the Asset Management system

Policy & Strategy
Processes
Organisation
People
Infrastructure (means)

19 Organisational integrity
 Plant Processes /
Systems
(asset
integrity)

Integrity People
(culture &

Asset Integrity behavior)

Organisational
integrity
The human integrity
The system integrity

20 Organisational integrity
Organisational Integrity
Organisational integrity can be described as knowing what are the
right things to do and doing the right things

Organisational integrity is intrinsically linked to company culture,

human factors and processes and practices.

Plant Processes /
Systems
(asset
integrity

People
(culture &
behavior)

21 Organisational integrity
Human / organisational context
Scope & focus of
organisational
integrity
in oil & gas

Business context

Narrow Broad

Risk related to the

operation and All business risks (e.g.
Risk management of oil & financial, commercial,
context gas ASSETS and competitors, )
facilities
The scope & focus

Asset delivery
AM goals Safety, health,
output
environmental Expenditures / costs
Innovations
22 Organisational integrity
Module 1: Introduction AM & Organisational
Integrity
Why Asset Management

Asset Management introduction

An Asset management model/system

The importance of organisational integrity in Asset Management

Building organisational integrity

23 Organisational integrity
The goal !!!
Building organisational integrity
The human integrity
The system integrity

Organisational integrity
culture

24 Organisational integrity
 From values to organisational integrity

Follow values Promote the values &

be example drive behaviour Define a set of
values

Values
Execute with
integrity

Communi- Integrity Integrity in

Leadership cation Management decisions and
participation System actions

Organisational
integrity
Risk Management
culture

Support, Define & implement

evaluate & the integrity
improve management system
25 Organisational integrity
Become, be, stay a world class
integrity based company

Best practices
Knowledge and skills

Changing Culture
Working together, leader ship
principles, behaviour

Sharing goals
Common vision, mission, goals
World Class

26 Organisational integrity
Organisational integrity in oil & gas

Oil & gas operators are facing a complex portfolio of risks related to
the operations and management of their assets and facilities.

They are committed to deliver excellent safety, health &

environmental performance, while being profitable.

The key performance success factor is:

Realising outstanding
asset & organisational integrity

27 Organisational integrity
 Want to learn more?

Explore the detail behind these

essentials
Discover how they fit into a
wider integrity strategy
Walk through real life case
studies which bring them to life
All without leaving your desk
In unique webinar format

Visit www.oilandgasfundamentals.com for details

28 Organisational integrity