Chevron

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Operational Excellence
Management System
An Overview of the OEMS
 2 Operatio nal Excellence
Management System

4 Leadership Accountability

6 Management Syste m Process

8 OE Expectat ions

14 OEMS Implementation

15 Corporate DE Review Process

16 Tenet s of Opera t ion

;jiiIl Inside
Back
Cover
Glossary

Chairman's Message
I am a strong and tireless advocate for operat iona l excelle nce. Operational excellence
is not only consistent wit h OUf commit ment to protect people and the environment. but
it also makes good busin ess sense. Safe, reliable, efficient and environmenta lly sound
operations are key to our company's fin ancial success. I expect t hat every j ob and every
task can be completed every day wit hout injury or incident.

Achi eving operat iona l excellence requires a systemat ic appro ach and a commil ment to
incident-free operations - always and everywhere. That's th e power of th e Operati onal
Excelle nce Management System (OEMS).

OEMS prov ides a co mmon pro cess that can be used in our operations around the globe.
It enables our busin esses to manage th eir safety, health and envi ron mental effo rts and to
conti nually improve the rel iability and effic iency of thei r operations. Driven by leaders hip,
it provides a system fo r adopt ing best practices and sta ndards, helps ensure th at our
company attains wor ld-class performance and deliver s sustai ned value .

Dave O'Reill y
I ask you to develop your OE knowledg e and skills , adopt and cascade the Tenets of
Chairmen and CEO
of Chevron Corporat ion Operat ion and appl y the management system. By doing so, you will be creatin g a company
t hat is safer, more reliable, mo re efficient and environmentall y sound - a company that is
a top per for mer and compe ti tor in every sense of t he word .
 ----- - - - - - - .

Operational Excellence
Vision and Values
Our vi sion for ope ratio nal excellence d ir ectl y As a busines s and as a member o f the wo rld com munity. Chevro n is com-
suppo r ts our corporate vision " te be the glo bal mitted to crea ting su per io r val ue for o ur invest or s. cus to mers , par tners.
energy company mos t admired l or it s peo ple. host governments, local commu nities and our em ployees. To succeed. we
par tnership and pe rfor mance ." With respec t must deliver wo rl d-cl ass performance and exceed th e capabi lities 01ou r
to o pe rat io nal excel lence, our vision is Mia be str ong est ccmceutcrs.
recognized and admired by ind ustry and the
com munities in which we operate as wo rld-cl ass Operat ional esceuence (OE) is a cr itical d river lo r business success and
in s.afe-tV. health. envi ro nment, reliability an e nabling st ra tegy fo r Chev ron. Operational excellence is def ined as
and efficiency." ..t he syst ema ti c ma nagemen t o f safety, h ealth, e nvironment, re liabilit y
and efficiency to achieve worl d-cla ss per fo rmance."
Objectives
To ach ieve and sustain hig h level s of per form ance, we mus t de velop
To bett er describe "world-c lass performan ce,"
st ro ng capability in ope r at io na l excell ence th ro ugh out Chevro n. Thi s
th e foll ow ing co rpo r ate DE Object ives have been
requires ac ti ve leadership and all employees to be e ngaged. We mu st
esta blis hed. We will systematic ally mana ge DE in
develop a cult u re wh ere ever yon e believes that all incidents a re prevent -
order 10:
able and th at " zero incidents " is possib le. Wit h enga ged and com mi tted
leaders hip, wo rld-class processes and an OE cult ur e we can ach ieve ou r
Achieve an inj ury- f r ee wo rk place.
objec tives in o pe rat io nal excellence.
Promo te a healthy wo rkplac e and
mi tiga te significant heal th r isks.
This do cu ment pro vides an overview of t he Operational Excellence
Elimina te spill s and environme nta l
Management System (OEMS), ou r st and ar d approach for achieving
incidents. Identify and mi t iga te key
world -class pe rfor mance. It includes gen er al guid ance for the implement a-
environmental risks.
tion and o perati o n of the OEMS. More deta iled gu idan ce can be fo und o n
Operate inciden t- fr ee w ith ind us tr y-
the Operat ional Excelle nce webs it e and wit hin the OE Sta nda rd Pr ocess
leading asset r eliabili ty.
docu mentati on. the l eader 's Guide to the OEMS and in the onl ine OE
Maximi ze the efficie nt use o f resources
Cer t ificat io n mod ules.
and assets.
The Operational Excellence
Management System (OEMS)

The Operational Excellence

Management System consists
of three parts:

Leadership Accountability
Management System Process
OE Expectations

With operations sprea d acro ss t he glo be, we can im prove perfor -

Operational excellence is not
ma nce mor e qu ickl y and susta in ou r results eff icient ly if all our
bus inesses follo w a sta ndard approac h t o DE. something separate from our
Our Standard Approach business; it is how we must
The OEMS is Chevron's sta ndard approac h for achieving
world-class performance. Using a standard app roach to
run our business to achieve
systematically identify and close per formance gaps, we can
our vision of success.
con tinually im prov e our DE result s.

Operational excelle nce is no t somet hing separate from our

business; it is how we must ru n our busin ess to achieve ou r
vision of success.

Using th e OEMS, we effect ive ly integr ate DE obj ect ives, plan s,
processes and behavi or s inl o ou r dail y opera tions and protect
people and t he env iro nment tod ay and in the future.
Leadership Accountability
leadershi p is the single largest factor for success in DE-leaders est ablish the vision and set objec tives that chal-
lenge t he organization to achieve world-d ass result s. They direct the Manaqement System Process, se tting priorities
and monitori ng progress on plans t hat focus on t he highest-i mpact items. leaders visi bly demonstrate their com-
mitment t hrough personal engagement with t he workforce and showing a conce rn and caring IOf the healt h and
safely of every indiv idual.

Management System Process

A systematic approach used to dr ive progress toward world -class per formance . The Management System Process
(M$P) is linked to t he business planning process and beqin s with defi ning a vision of success and setting obj ecti ves.
Gaps bet ween current per formance and these objecti ves are uncovered during t he assessmen t phase, th en plans
are developed to close the gaps, the plan is implement ed and a review of plan implement at ion and performance
is completed.

OE Expectations
Corporate Expectations lor Operatio nal Excellence are detailed under 13 elemen ts. The OE Expectations are met
through processes and programs put in place by local managemen t. Many of these expect ations are supported by
corpo rate and opera ti ng company standard OE processes.
Leadership Accountability
The single largest factor for success in operatlondl exceuencers leadership. Leaders are account-
ab le no t only for get tin q res ults. but getting results In th e r ight way and beha ving In accordance wi t h our valu es.
Leaders are expected to establish a vision and set objectives l or performance that challenge th e orqa nlzatlon to
achieve world-class results. Leaders direct th e Manaqemenf System Proc ess to drive improvemen t In OE res ults.

Leaders at every level are a lso expected t o seste- a culture qrounded In operational excellence. By t heir actions,
leaders must send the mesSdQe that operational excellence Is a priority thro ughout their orqan lzatlon s. Through
personal example. they mu st demOIlstra te that zero Incidents of any kind - whet her reldted to safety. health,
enviro nmental, reliability or efficiency - is attainable.

Under t he OEMS. leaders are responsible Personal Involvement in the

and accountable for: Management System Process
Alignment Around OE Objectives leaders personally direct the Management System
Process for cont inuous OE improve ment and int egrate
Leaders est ablish a vision and widely communicate world,
operatio nal excellence into business plans.Leaders
class object ives, metrfcs and targets for t heir unit s. These
pri oritize OE plans to focus on t he highest -impact items
are aligned wit h corporate OE Objecti ves and cascaded to all
in alignment wit h vision and objec tives. They provide
levels. They ensure t hai th e OEMS is implement ed and pro"
resources and monit or progr ess on OE plans unl il a
cesses are put in place t o satisfy all OE Expectati ons and th at
successf ul conclusion is reac hed.
resources, roles, responsibilities and accountabilities are fu lly
aligned throu ghout the organization.
leader s should:
Ensure t hat processes necessary t o meet DE
l eaders should:
Expect at ions are ident if ied and assessed f or
Establish a vision and set clear, world-class DE ceiec-
design and ettecnveoess.
uves for their organizatio n. Ensure that assessed gaps are prioritized based
Personally encourage and participate in benchmar king
on ri sk.
OE performance and OE processes with internal and
Conduct a survey using the l eadership Behavior
extemer c rc enee nc ns.
Assessment Tool (l BAD and use the lBAT
Widely commu nicate the perf or mance objectiv es,
findi ngs to develop action plans for imp roving
metrt cs and targe ts to every level.
leadership behaviors.
Set objectiv es t o improve leadership behaviors.
Identify highest-impact items for focu s and
Adopt and cascade t he Tenets of Operat ion to the
inclusion in t hree-year business plans.
ent ire wor kfo rce, ensuring that the tenets are incc rpo-
Direct development or impr ovement of processes
rated into decisions and behaviors (See page 16).
to meet OE Expectati ons.
Set object ives for OEMS implementation and develop-
Assign responsibility and direct and monitor th e
ment of processes t o meet OEMS requirements.
implementat ion of DE plan s to their

Visible Leadership Engagement
and Commitment
Leader s visibly dem on st rat e invo lvement an d commitment
to improv e OE performance. They are flue nt in the OEMS.
They understand their r oles. r espOnsibiliti es and accoun tabili-
t ies as o wner s of operational excellence and seek to cont inua l-
ly improve th eir per sonal and their or ganization's capabilities
to achieve world-class DE performance.
Leaders s hou ld:
Be uueot in the OEMS.
rreouenuv visit their operations to reinfor ce OE
perfor man ce and t est OEMS effectiveness.
Know the ir operatio ns well enoug h t o identi fy wo rk-
place hazards and reinfor ce crit ical OE processes.
Sponsor and participate in cr itical processes necessary
to meet DE Expecta tion s.
Act ively foll ow through on incident invest igat ions
to ensu re root causes are determined and mitigat ing
acti ons are carr ied o ut.
Activel y engage in impr oveme nt o f their pe rso na l
and t heir o rga niza t ion 's OE capabili ty.
En gage t hird parties to ensure al ignment aro und
OE Expectations _
Building an DE Culture Through
Workforce Engagement
Lea de rs demon strate t hat o perat ion al excell ence is a per son al co re
val ue, an d they show con cern and car ing for t he health and safe ty of
eve ry ind ivid ual. The y are equally co mmitted to e nvir onmental
pr otection and achieving world -cl ass r eli ab ili ty and eructeocv
l eaders understand and r ole model th e Tenet s of Operation and
behavi or s necessar y to build an OE cult ur e. They r ecog nize and
r ewar d these beh avior s in ot hers. They co nt inuously im pr ove o ur
OE cul t ure by und er standing the gaps and r emovi ng ba rri ers 10
wc rrd -ctess OE per fo rmance.
leaders should:
Demo nstrat e a per sona l conc er n and caring for the health and
safety of every individual and pro tedio n of t he environment.
Work to ensu re t hat the entire workfor ce understands and
expects tha t every j ob and every task can be co mpleted every
day withou t inj ury o r incid ent.
Rein force The Chevr on Way values in o pe rational excellence
through act ions, beha viors and decisions.
Model OE beha vior s t hat suppo r t th e Tenets o f Operation
and ho ld ot hers accountable to do th e same. Alw ays
" walk th e talk."
Engage the wo r kforce in OE pe rfo rma nce, and empo wer
them to make OE improvem ents,
Iden t if y, understand and eli minate barri er s to an OE cu ltu re
and improved OE performance.
Ensure every emp loy ee has an OE.per fo rmance agreemen t
in th eir pe rf orma nce pla n.
Hol d peo ple acco untable fo r OE per formanc e.

'0 Thlnqs a LHder Can Do to Build an DC Cultute 5. Sponsor and participate in critical OE 8. Conduct field visits, ask questees about
processes: make safety observations, safety, _ironmf'ntal and rf'liability condi-
1. Engagein dialogue with ITW11lbers 01 th(> workforce
participate In a Job Safety Analysis(JSA) tions and provide immediate pin'pointed
(employE'E'S and contractors); inquire about their
or an incident inwstigalion to determine fHdback (both positive and constructiw).
work and working conditions. understand and
root cecses, 9. Hold yourself and ethers accountable
recognize the value of each individual's contribution
6. Set clear, specific, measurable objectives for operational excellence pi'r lormance.
to incidenH rH operations.
for operational excellence. Communi- Includf' OE per formance in ranking. salary
2. Positively reinforce sale behaviors on the spot. Act
cate frequently with eu members of t he and job selec tlcns.
immediately to mit igate unsafe or environmentally
workforce on the objectives, measures, 10, Set high, specific standards for contin uo
unsound conditions. Share personal examples of
plans and progress. Regularly recognize ous improvement of criti cal OE processes.
safety learnings and coservaucns from both on' and
progress on indicators and achievement Share lessons learned and seek out and
ott-the-job.
of results. adopt precesses that could improve
Management System Process
The Management System Process (MSP) Is it systematic appt'OdCh used to dr ive proqress
toward world-clas s perfo rmance. Thf! M5P Is linked to t he busi ness plannlnq process. Dr ive n by leadership, th e
MSP is used to Inle qrate DE Objec tives, plan s and activities into daily opera tions. The MSP helps t he corporation,
operating companies and un it s establis h DE priorities and plans and It quides the developm ent of measures to
mon itor progress t oward wor ld-class results.

The Management System Process conta ins Assessment

fi ve sfe ps:
Vision and Objectives
An DE vision is establ ished, or validated. and specific objec-
tives and measures for success are ident ified and cascaded
to the workf orce.
Vision and Objectives action s:
Develop an OE vision. world-cla ss objec t ives, melrics
and targ ets. These are based on the corporat e objec
uves. benchm ar king data and ot her criti cal business
dri vers.
Set object ives lor OEMS implemen ta tion and t he de-
velo pment of processes to meet OEMS requirement s.
Cascade OE vision, obj ectives, metrics and targets to
all levels of the organization.
Adopt and cascade the Tenet s of Operation to
the workforce.
The Management System Process
A comprehen sive OEMS Self Assessment is co mpleted
annually to identify gaps in OE proc esses and performance
agains t est ablished Objectives.
The leadership team is engaged in assessments and
participates in prioritization of assessed ga ps.
The hig hest pr iorit y OE pr ocesses are assessed annu ally and
a fu ll assessment of all pro cesses is required at least
every three years.
Assess ment actions:
Assess ri sks and gaps against objectives in:
l eaders hip Accou nt ability.
Management System Process.
OE Ezpectat lcns and Processes.
facility risk.s and capabi lit y to achieve wend -cress
performance.
Wor kfor ce OE cult ure.
Priorit ize assessed qaps based on risk and opportu nity.
Identi fy futu re risks t hat could pr event wor ld-class
perform ance.
Planning
A t hree-year plan is developed to manage t he pr ioritized
gaps. Plans are incor porated directly into business plans
and accountabilit ies are assigned.

Plann inq action s:

Develop OE memes. ta rcets and action pla ns with
com plelion dat es and milestones and incorporate into
business plans.
Iden tify and all ocate resour ces to successfully
complete t he OE action plans.
Communicate metri cs, targe l s and acho n plans.
Assign accounta bilities and develop necessary
per fo r mance agreement s.

Implementation Achieving World-Class

Planned act ions are implemented alonq with other business
plan acti vities. OE netw orks are engaged to share lessons
learned and seek out besot pract ices and processes t hat can
be adopted to achieve plan objec tives,
Implementation actions:
Execute plans alo ng wit h ot her business plan act ivi ties .
Maintain co ntact s with DE networ ks to share lessons
learn ed and to :ieek out best precnces and processes
t hat can be adop ted t o achi eve plan objec t ives.
Monitor plan progress and DE perfo rmance at least
monthl y and adjust plans as necessary.
Identify and manage new, unplanned actions not
in Cluded in cur rent business pla ns.
Review
An annual review of all OEMS acti vity is conduct ed to evalua te
proq ress on per forma nce and ident if y necessary adjustmen ts
to plans to achieve world-cl ass result s.
Revi ew acti on s:
Review progress against OE plans t o det er mine
whet her t hey are effect ive and pr ogress is on t rack
t o achieve wcrte-ctess performan ce.
Evaluate the organizat ion's Management System
Performance
Success in operational excellence requires discipline
in both the planning and executio n of work necessary
to manage safety, healt h, environment , reliabili ty and
efficiency with world -class resun s.
The Manage ment System Process (MSP) is a
syst emat ic approa ch used to drive progress toward
world-clas s pe rfo rman ce, integr at ing operat io nal
excellence into business plans. The MSP also pro-
vides a syst ema tic means to manage and administer
th e many pr ocesses a unit has in place for opera-
t ion al esceueoce. Driven by leadership, t he MSP is
used to establish or validate t he OE visio n and set
wo rld -class objec tives and ta rgets for world -class
perfo rmance. Using risk-based assessment and
prio rit ization proc; sses, gaps to achieving world"
class results are identified. Plans to close gaps
ar e in corpo rated into the t hree- yea r busin ess
plan, im plemented and monito red to a success"
ful co nclusio n. OE pr ocesses necessar y to m eet
OEMS requirements are identified, de velop ed,
im ple men ted and co n t inually i mprov ed. Annu ally,
overall OE performance and pro gress are r eviewed

Process activi ty for improvemen t. and necessary plan adj ustments are made .

Identify possible plan adjustments based on emerging

issues and changing business co nditions.
OE Expectations
DE Expectations are organ ized under J3 elements and sp ell out specific requireme nts for the managem ent
of safety, health, environment. r eliability and efficienc y. The expectations are met th rough pro cesses and programs
put in place by local management. In many cases, a single pro cess or program may fulfill the Intent of one or more
expectations. In some cases, one expe ctation may require several processes to be put In place.
Leaders are responsible for ensur ing that processes and program s are established and working effectively to sat isfy
all expectations. Several expectat ions are supported by Chevron standard processes or operat lnq company standard
processes. A current list of Chevron standard processes Is availab le on th e Operational Excell ence website.

Element 1: Security of Personnel and Assets Element 2: Facilities Oesiqn and

Provide a secure environment in which business operatio ns
may be successf ully conduct ed.
1.1 A process is in place to actively engage employees in
security awareness and vigilance to the security environment.
1.2 Risk-based security manage ment plans are developed,
implemented and maintained t o address potential secur ity
t hreats to t he business.
1.3 A process is in place to integrate secur ity management
plans wit h related plans for emergency manage ment, business
cont inuit y and inform ation protec t ion.
Construction
Design and const r uct facilit ies to prevent injury, ill ness and
incidents and to operat e reliably, efficie ntly and in an erwt-
ronmentall y sound manner.
2.1 The Chevron Project Developm ent and Execut ion
Process (CPDEP) and applicable tools and sub,processes
such as Decision Analysis, OE Roadmap for Project s and
Operations Assurance, are used to incorp orate OEMS
requirem ents in the design and const r uctio n of all new
and modified facilit ies.
2.2 Consider reli ability, operability, maintainability and
total life' cycle cost t rece-ou s in making incremental capital
invest ment decisions. This t radeoff analysis should use th e
cr it eria found in the Corporate Invest ment Analysis Manual.

2.3 A process is in place t o comprehensively assess and

evaluate safety, health and environment al risks; potential
business and community impacts; and to develop associated
mitigation plans for new and modified facilit ies. Assessments
conducted in early project phases shall be re-evaluated
duri ng f inal detailed design to determine whet her mitigation
plans have been implement ed. The HES Risk Management
Cor porat e Standard Process and t he Environm enta l. Social
and Healt h Impact Assessment (ES HIA) Corporate Standard
Process support thi s expectation.

2.4 Conduct pre-startup reviews on all new, modifi ed or

__ . . , . .. _, ., .. . _ .. , _ _ , " < ' ,. _ < _ _ < .. .. _ u ~ . .<
Element 3: Safe Operations
Operat e and maintain facilit ies to pr event injuries , illness and incidents.
The Process Approach
3.1 Use the HES Risk Management Corporate Standard Process t o per iodically
Well designed and euecuvetv implemented
ident if y, assess and mi tigat e t he saretv and healt h risks related to faci lit y
processes are necessary to deliver world-class
operations and mod ifi cati on s.
results in operat ional excellence. f ollowing a
3.2 A comprehensive safety program is in place for each locati on. Core process approach, each unit ident ifi es, develops,
elements of the pr ogr am shall include: implements and cont inually improves OE Pro-
Wri tten sale work practi ces. Sal e wor k pr acti ces may include: permi t to
cessesas necessary to meet t he requirements
work, hot wor k, co nf ined space entry, equipment isolati on (lockout!
of t he OEMS.
taqout), opening equipment, excavation, worki ng at heights, elect ri cal
wor k, simultaneous operat ions (SIMOPS), bypassing cri tic al prote ct ion s, f or processesto be ettect ive, they must be
lining and rig ging, and ot her applicable practi ces identi f ied th rou gh r isk documented and incorporate in their design
assessm ent of local operat ions. and operatio n the following f ive component
A wr itten j ob or task safety analysis process (JSA) to identi fy, elim inate model:
or miti gate potent ial hazard s pri or to conduct ing work. Purpose, Scope and Object ives -
Stop work authorit y. defines the processes' boundaries and
A repetit ive stress inj ury (RSI) pr event ion pr ocess. interlaces wit h other processes along
A comprehensive road safety management process to mi nimize risk and with purpose and expected results.
pr omote mot or vehicle sale ty. Procedures - describes t he steps
A hazardo us mat eri als comm unication (HAZCOM) process to manage and necessary to be perf ormed and how
com municate hazard s. t hey are to be accomplished.
A behav ior-based safety process to provide for observ at ion and co mmen- Resources, Roles and Responsibilit ies -
t ar y on worker behaviors, t racking and anal ysis 01observ at ions, and a defin es who is responsible lor doing
proce ss for ide nt ify ing and implementi ng act ions for impr ovement. t he work, and lor administering and
3.3 An occupational health pr ogram is in place for each locati on. Core eleme nt s maintaining the process (Process
of t he prog ram shall include: Ownership).
Occupat ional hygiene and medical surve illa nce prog rams appropriate Measurement and Verificat ion ~
for t he location t hat in clude pr ocedures for ident ificat ion and cont ro l confirms that the object ives and
of workplace exposures, includi ng infect ious di sease, and ongoing results are being achieved and t hat
monito ring and surv eilla nce of affe ct ed personne l. t he crit ical components of t he process
A process to det erm ine whether employees are safely able t o perfo rm are adequat ely designed and are being
th e essenti al physical, psychological and cognitive req uirement s of t heir executed.
jo b wit ho ut risk to self. ot hers or t he enviro nment and are not impaired Cont inual Improvement - utilize s
by dru gs, alcohol or di sabling medical condit ions. measurement and verificat ion results
Healt h educat ion programs to reinforce personal and facility hygiene to and other input to evaluate how to
co ntro l wo rkplace exposur e and transmission of infect ious diseases. improve t he process and ensures
act ions are taken to improve process
3,4 A process is in place to develop and mainta in operat ing and maintenance design and effective ness.
procedures, process safety info rmati on. The pr ocess shall ensure t hat docu-
The design and rigor of each process should
ment s, procedu res, records and ot her infor mat ion are current and accessib le.
be based on the risks associated with t he
Procedu res for document control including conf ident ialit y and reten ti on shall
unit' s unique operatio ns. A complex operati on
also be inclu ded.
wit h Ta ny possible hazards or an operatio n
3.5 A t raining proqram is in place to ensure th at employee s have the skills and in a sensitiv e environment might have a more
knowledge to perform their jo bs compete nt ly, in an inciden t -f ree manner and rigorous process in place t han a less complex
in co mpliance wit h atl applica ble laws, regulatio ns, company poli cies operation in anoth er locati on.
and requi rement s.
Corporat e OE Reviews include an assess-
The program shalt include:
ment of bol h the design and etrecuveness of
DE Expectations
Element 4: Manaqement of Chanqe
Manage both pe rmanent and temporary changes to prevent
incidents.
4.1 A process is in place to manage changes to facilities,
opera tions, products or the organiza tio n. The manageme nt of
change process shaH add ress:
Both perma nent and temporary changes.
Aut hority for approvi ng cha nges.
Evaluation of healt h and safety hazards, environmental
imp act s and mitigati on.
Communica tio n of t he change.
Training.
Element 5: Reliability and Efficiency
Reliability
Operate and main tain wells and facilities to sustai n mechanical
integrity and pr event incident s.
5.1 A process (Reliability Opport unity Identificati on [ROI] or ot her
applica ble pr ocess) is in place to ident ify and re sol ve th e signif i-
cant few faci lity and business uni t-wi de equipment work pro cess
and/o r human reliability opport unit ies that cause significant inci -
dents or perf orm ance gaps. Failure analysis is used to dete rmine
causes of failures and actio ns are taken to resolve t hese causes.
5.2 A process is in place to ident if y cri tical st r uct ures, equip'
ment and work processes. Possible failur e modes and effec ts are
analyzed and ste ps are taken t o prevent th e failure or mitigate
t he effects.
5.3 A process is in place to establish and use stan dardized equip-
ment operatio n and surv eillance duties for all crit ical st ructu res,
equipment and prot ection devices t o ensure th ey operat e proper ly.
5.4 A process is in place for condit ion monitoring (or ti me-based
inspecti on and testi ng) to monitor and ensure mechanical integrit y
of all cri tical st ruct ures, equipment and prot ecti on device s.
5.5 A process is in place t o prioritize, plan, schedule and complete
necessary maintenance for all st ruct ures, equipment and
pro tective devices. Process shall include;
Proactive maint enance of equipment and pr otecti on de-
vices th roug h use of surv eillance and conditio n mo nito ring
results.
' . . "/ 'iJ
,.-
/J
5.6 A pro cess is in place to ident ify and resolve ot her
repet it ive or recurring failures, t o imp rove reliability and
reduce maint enance costs.
5.7 A pr ocess is in place t o manage well reliability.
Process shall include:
Identif icat ion of cr itica l wells or well types. Possible
failur e modes and effects are analyzed and steps are
t aken to pr event failures or mitigate failur e effects
for cr itical wells or well ty pes.
St andardized operatio n and survei llance duties for
crit ical wells or well types.
Use of survei llance, perf ormance data and analysis
to assess current well perf orman ce against expected
well pot entia l to ident ify and evaluat e opport unit ies
for improvement.
Condit ion monitor ing t o ensure mechanical inteqrity
of all crit ical wells or well types.
Proact ive maint enance programs utili zing available
surveillance and condit ion monit oring result s to cor-
rect abnormal condit ions.
Priorit izatio n, planning and scheduling of well work.
Efficien cy
Maximi ze effi ciency of operat ions and conserve
natu ral resources.
5.8 A process is in place to optimize operational processes
and improve profitability thr ough the eff icient use of people,
time and assets.
5.9 A process is in place to tra ck and improve energy
eff iciency while redu cing emissions (including greenhouse
gases) per unit of pr oducti on.
5.10 A pr ocess is in place to maintain inventor ies
and plans for conserv at ion of natural resources and
fo r reducing use of raw materials by each facilit y and
each pr ocess.
Element 6: ThirdParty Services Element 8: Product Stewardship
Systematically impr ove Third Part y Service performanc e Manage potenti al health , enviro nmental. safety (HES)and integrity
t hrough confor mance to Operational Excellence. r isks of our products throughout a product 's life cycle.

6.1 A process is in place to ensure that thi rd-party service 8.1 A process is in place to mai ntain and communica te information
suppliers perf orm to safety. healt h, erwironrnent and reliability on potential hazards and exposures from products from concept ion
requirements consistent with t hose requ ired of company and development through acquisiti o n. manufacture. distribution,
employees when working on company property and when storage, use, recycling , potential release and disposal.
prov iding services for the company off company property in
operational cont rol. 8 .2 A process is in place to ident ify. assess and manage signif icant
HES and integrity risks across t he life cycle (manufacturing. storage.
6.2 A Cont racto r satetv Management (CSM) process is in
dist ributi on. transpor tat ion. use. recycling, potent ial release and
place th at clearly esta blishes accoun tabili tie s to include:
disposal) of each exist ing product , by-product. int er mediate, or
Ident ificat ion of company cont ract "ow ners" (or man-
process st ream. Process should ensure peri od ic re-evaluati on
agement sponsors) accountable for each cont ract.
as appropriate.
Activ e engagement of cont ractors in implementi ng and
improving the CSM program.
8 .3 A process is in place to identify, assess and manage HES and
A cont ractor quali fi cation and selection process which
prod uct integrity impacts of manufacturing . dist ributi on. storage,
addresses safet y performance.
use. recycling. potential release and disposal when developing.
Pre-jo b work reviews and act ions during work to verify
for mulat ing or altering products. by-products. and pro cess inter-
scope of work. reinforce expectations and monitor
mediates. Assessment should be conduct ed earl y in each product's
compliance to requirement s.
or project's development and for any changes in t he produ ct life
Periodic evalua tion of cont ract or safety perfor mance
cycle t hat may pote ntially alt er the product.
and assessment of t he CSM prog ram.

Element 7: Environmental Stewardship 8 .4 A process is in place to identi ty. assess and manage risks posed
St rive to cont inually imp rove environmental performance and t hrou gh sto rage, handling. t ransport at ion and distr ibut ion of com-
reduce impacts fr om our c pereuc ns. pany products. materi als and ot her commercial goods. Implement
appropriate produ ct quality cont rol processes and product integ rity
7.1 A process is in place to inventory all emissions. releases r isk-reduct ion measures.
and wastes and to identify nat ural resour ces impacted by
operat ions. (Nat ural resources include air. surface weter;
8.5 Promot e produc t stewardship practices wit h th ird parti es.
ground water, soil and geologic resources. and local biological
inclUding suppliers. dist ribu tor s. t ranspor ters. cust omers and other
diversity.) The invent or y should include possible sources of
direct produ ct recipients.
unplanned releases and sources of poten tial contamination
caused by past practi ces.

7.2 Processes are in place to identify. assess. mit igate and

manage signif icant potential risks and impacts to human
health and the environment (incl Uding natural resources)
associated wit h operations, emi ssions, releases and wastes.
The HES Risk Management Corpora te Standard Process and
the Environmental, Social and Health Impact Assessment
(ESHIA) Corporate Sta ndard Process support t his expectation.

7.3 Use the H[S Property Transfer Cor porate Standard

Process to ident ify and manage potential safety. health or
envir onmenta l liabilities before tran saction. The process
shall include:
Assessment 01risk for identified liabilities.
Management of ri sks based on current and likel y f utu re
 DE Expectations
Element 9: Incident Investigation
Investigate and ident ify roo l c auses of incidents to red uce o r
eliminate syste mic causes and t o prevent future incid ent s.
9.1 A process is in place to repor t, record and invest igate incidents
and near mi sses and correct an y defi cien ci es fo und. Thi s pr ocess
sha ll incl ude:
Management r oles and respon sibili ti es in incide nt
investigat ion .
Roo t-cau se ana lysis fo r sig nificant events and near mi sses.
Ann ual evaluat ion 01 incid ent caus e Irends to determine
whe re improv ements in syste ms, pr ocesses, practi ces o r
pr ocedures are warr anted.
Sharing of r eleva nt lessons learn ed.
Proced ures for foll ow -up and clos u re of ac t io ns t aken t o
resolve def iciencies.
Element 10: Community Awareness and Outreach
Reach o ut t o the co mmunity and engage in ope n dial ogue
to bu ild t rust.
10.1 Foster o ngo ing two -way communica t io n with employee s,
con t ractor s, reg ulator y aut ho riti es and communit ies to add r ess
pot ential security, safe ty, health, enviro nmenta l and ot her concerns
rel ated to ope ration s. facilities, and products.
10.2 A pro cess is in place to fami liarize intere sted parties wit h th e
facility, it s ope rat io ns and produ ct s. as well as effo r ts t o pro tect
safety, healt h and the envi r onment.
Element 11: Emergency Management
Preven ti o n is th e fi r st priorit y. but be pr epared t o
respond immediately and effec tively to all eme rgencies
involving Chevro n wh oll y-owned or ope rated assets. For
company product s o r interests such as commo n carrier s.
c har ter ed vessels a nd fa cilities o perated by other s, be
prepared to m onit or th e respon se and , if warrante d.
tak e appro priate act ion s.
11.1 Maintain a pro cedure co nsiste nt wi t h corpo rat e
guidelin es t o ensure promp t not ifi cati on of man ag e-
ment of significant health. e nviro nme ntal, and safety
inci de nts.
11.2 Maintain an emergency respon se pl an th at
describes how emergencies will be managed a nd with
w hat resou r ces. Plan s sho u ld add ress all cr edible and
sig nific ant ri sks identified by si te-speci fic risk and
impact assessments.
11.3 Emergency r espo nse plans shall be:
Documen ted in app ropriat e detail.
Integrat ed with r eleva nt bu siness cont inuity and
crisis ma nagement pla ns.
Reinforced through esta bli shment of a training
pr ogram and an annual exercise pr ogram to
tr ain j ne emer gency r espo nse team and to test
the plan .
Readi ly available t o a pprop riate o n-site
personn e1.
Comm unicat ed to empl oyees. on -site
cont racto rs. j oint-ven ture par tne r s. and
appro pri ate government agenci es and
commun ity gr oup s.
Reviewed and. wh ere necessary, r evised - in
par t icular. aft er th e occurre nce o f accidents or
emergency sit uat ions.
11.4 Develop and imple ment a busines s cont inu ity plan.
in accordan ce wit h th e Busine ss Co nt in uity Plan ning
Corpo rate Sta ndar d Pro cess. that addresses cont in uit y
Element 12: Compliance Assurance
Verify conformance with company policy and government
regu lations. Ensure that employees and cont racto rs understand
the ir OE-relat ed responsibilit ies.

12.1 A process is in place t o:

Ident ify and record all applicable laws, regula tions,
compliance requir ements and OE-relat ed policies.
Assure th at all employees and cont ractors understand and
comply with ident ified requiremen ts.
Develop, prior itize and implement programs of cont rol.

12.2 A self-audit process is in place to verify compliance wit h all

o r-reret ec company poli cies and st andards and with the spirit
and lett er of all applicable laws and regulations, regardless 01t he
degree 01enforcement.

12.3 A process is in place that encourages employees and con-

tr actors to f reely report existing or pot ent ial violat ions of law or
company policy. without l ear of retribut ion or any adverse company
act ion because 01his or her report. Processes must include an
appropria te and t imely investi gation t o address the report. Allow "
ance must be made for anonymous report ing.

12.4 A process is in place to identi fy and repor t significant non-

compliance issues and root causesto management in a timely manner
and tr ack corr ect ive actio ns to closure.

Element 13: Leqisfative and Regulatory Advocacy
Wor k et hically and constructively to influence proposed laws and
regUlat ions. and debate on emerging issues.

13.1 A process is in place t o ident ify, track, and comment on pro-

posed legislati on. regulati ons. and emerging policy issues.
 OEMS Implementation
Everyone has a role to play in achieving success in operational excellence.
Regardless of role - mechanic, manager. office worker or operato r - every one contrib utes to succes s In opera-
t ional exce nence. As we car ry out our roles. each of us Is responsible for conducting ourselves according to the
values expressed In The Chevron Way. By understa nding our respective role and the behaviors necessar y for
success. we can build and sustain a cultur e for operatio nal excellence. We can accelerate our proqress throu gh
proact ive sharing and adopt/nq of effective processes and practice s.

Who What How

lNders, Le.ct.Bhip
ream,lIne Managers
Alig n around objectiws.
mrec t thO? MSP.
oe rrcostrete 1ead<?l'!ihip
E!f'IgaQ(>lTl(>l\1 and oommil/Tl('f1t
Build an DE cul turO?
Esl ablish and communicate cIO?,'Ir visiOn and objKIi~s for success.
lmplement OEMS in un it
Be accco ntame and hold ctners accountable l or DE performance.
Part iCipate in and ensu re others lo llow OE precesses,
Role model and 10110... t he Tenets 01ccerauon.
Part icipate in assessment a nd priori tization of OE Qaps.

OE Cha mp ion Supportleaders, teece rs fnp team
and line meneeement in OEMS
imple men tation and o peratio n.
Help esteons n OEMS wit hin eecn operahnq unit.
Coach leaders , teeoers fup teem and ot her line rneneqement in OE.
Help establi sh OE Processes. thO?ir prioritization, and novernance.
Coordina te tnteqrenon of DE plans Into business plan and assist in
monitonnq and rollow-up.
Coordinate local OEMS Self Assessment s.
Follow tne t enets of Operation.

Heillith. Environment,
Safety. Rellabllltv
and Eff iciency teems
I Assist
and $ubje<t m.ttK
eJtperts
seeoees
in establishiog and
deployiog functiOnal standards.
Provide sobject mailer eecertrse.
Provide HES and rO?liability sccocette linO? manag eflWfl t.
Suppor t OEMS implementa tion ettcrt th ro uQh f uncti onal O?ljllHtise.
Plan and implement subject maUer. audits and report s.
Support unit' s dewlopment, ProvidO? tect mtcet su pport f or HES and reliability improvements.
implemE'nlatiOnand improve- Follow tne T_ts of Operation.
mentdDE~

ProvidO? rescc rces and support
OE Procen Sponsors to ensure success of a specific
DE precess.
Serve as en advocate of t he proc ess to ensure t hat t he precess is
accor ded t he appropr iate priority and 1"@C00jY<?s f undinQ.personne l
and other resources,
En sure that process et recnveness and erficiency are meescreo and
verified at least annually.
Be accoun tabl e f or prc qres 's on the Contln c etimprovement Plan.
Coordin ate wit h other OE Process Sponsors and lin k wit h th e
business oren.

OE Process Advlso" Provide subjec t me tte r excer use
for a specutc OE proc ess.
Coordillato? and 100ad efforts reQardill Q t he process .
rnsc re t hat th e OE process, eocu meotauce arid records are kept
current.
Coordin a te o r support proce ss measurement and vermce ucn.
Conduc t per lormance re port i lll;l and t rend analysis.
Develop and implem ent the Continuallmproyement Plan.
Ma int ain contact wil h:
It Process Sponsor.
It Other precess Advi sors.
It Subject met ter expert s.
It End users.
 Corporate OE Review Process
The Corpo rat e DE Review Proc ess plays an integral part in OEMS implementation. The
OE Rating Definitions
process pro vid es independen t feedback to operations on good practices and gaps in DE
pr ocesses and acti vities. It also updates executive management on the stat us 01OEMS Good Rati ng
OE Processres) reviewed provide
im plement at ion throughout the corporat ion. OE Reviews provide an excellent learning
a high degree of assurance 01
op port unity t o accelerate the und erstandi ng and performance of th e OEMS within units. co mpli ance with DE requirements.
Identified weaknesses, if any, are
The DE Revie w Process has two separate but related programs - D E Reviews and DE
relat ively m inor.
Fo cused Reviews. Both programs provide an oppor tu nity to share successful practices and
lesson s lear ned . Sat is fac to ry Rating
DE Process(es) reviewed prov ide
reasonable assurance of compli-
OE Reviews ance with DE requirements.
DE Reviews are designed to assess an organizat ion's ability 10 meet Chevro n's requi rem ent s for Identified weaknesses requ ire
management attention to enhance
opera tio nal excell ence including l eade rship Accountability, Management System Pro cess and
overall eff ecti veness.
OE Expectati ons . Whil e these req uirements fo r operati onal exce llence remain the same acro ss
the corporation, indi vidual units may address t hem differently. For example, different processes less-Than-Satis factory Rating
may be put in pla ce to mee t a given OE Expect ati on based upon the unique operat in g envir on- DE crc cessresj revie wed do not
pr ovide reas onable assuran ce 01
ment. OE Reviews assess and rate bo th the design and effect iveness of these pro cesses in
comp lian ce Wit h DE requ irem ents.
meeting OE requirements. The ralings utiliZed ar e Good, Satis facto ry or less-Than-Satisfact ory. Identified weaknesses represen t
a depa r ture from the se requ ire-
OE Focused Reviews ments and mu st be promptl y
correc ted.
c t Focused Reviews are intended t o co mpliment the OE Reviews.OE Focused Reviews are mo st
succinctty descr ibed as fit -for -purpose and may foll ow tw o primary co urses. Reporting units Ar eas of Concern
Signif icant weakne sses in spec ific
may request a Focused Review to conduct an in-depth assessme nt of one or more OE systems, sub-processes or prac -
processes. Ot her Focused Revie ws will assess a unit's progress in clOSing gaps identified in th e ti ces th at represent a d eparture
previous OE Review and assist the unit in addressing remain ing gaps. They will typically be from DE requirements and mu st
be promp tl y correct ed.
t arqe ted at the unit level, bu t may also be based on a spec ific t opi c or acr oss unit boundaries.

Parameter OE Review OE Focused Review

Scope (content) Assesses an organization's ability to moet till' requirements 01
operatlonat exceuence. Ihls includes tile design and effectiveness
of an organization's processes for meeting til e OEMS requirements
and how thl'Y are tnteqretec into tile business. Provides limited
verif ication of specific compliance.
Reporting unit request to assess one or
more OE processes.
Assist unit in addressingaction plan closure.

APplicability . Organization based (typically reporting unit level); all Chevron Usually reportmq unit-based; may be cross-
reporting units . organizational depending on subject matter.
Tenets of Operation
To achieve and sustain our objectives, we must develop a culture where everyone beli eves all
incidents and operating disruptions are preventable and that "zero incid ents" ;s possible.

Tenets are a code of conduct used by employees and contractors as a tool to guide dail y
decisions. Leaders pla y an imp ortant rol e in reinforci ng behavi ors consistent with th e tenets.
The Tenet s of Operation are based on two key principles:

1. Do It safely or not at all. 2. Ther e Is always time to do It riqht.

Each organization wilt deploy the Tenets of Operation to pro vid e a foundation for an
operational excelle nce cul ture at Chevron.

Always:
Operat e within design and environmental limits.
Operate in a safe and controlled condit ion.
Ensure safety devices are in place and fun ctioning.
Foll ow safe wor k practices and procedures .
Meet or exceed cu stomer's requir ements.
Maintain integrity of dedicated syst ems.
Comply with all appli cable rules and regulations.
Address abnormal condit ions.
Foll ow written procedures f or high -ri sk or unusual
sit uat ions.
Involve the right people in decision s that affect
procedures and equipment.

Questions a leader can ask to ensure that the tenets are Incorporated into decisions and behaviors:
Do we know th e limits of our facil ity or plant and equipment ?
Could this activity cause too much pressure, temperature , weight,
flow. vibration or other abnormal condit ion that exceeds the design
of the equipment?
Will the task result in operating in an abnormal or alarm condition?
Are safety devices in place for th e work about t o be performed?
Are they wor king?
Do we understand the safety procedures or safe work practices
required for the task we are about to perform?
Do we have a permit and appropr iate job safety or hazard
assessment for the work?
Do we underst and th e r isks associated with not following
thO n."rOli " .",?
Is this task'going to compromise a safety system
or process?
Are we meet ing or exceeding the requir ements lor
thi s activity ?
Are we deviating from the normal process or expected
conditions?
Are we planning to follow th e safe work pract ice or
standard operating procedures for t his work?
Do we need t o foll ow a management of change
procedure for th is work ?
Does the work have adequate supervision?
Have we communicated with the appropriate people
Glossary
Managl:'ment Syste m Process
A systemat ic appro ach used to drive progr ess toward
world-cla ss perfor mance. The Management System
Process is link ed to th e business planning: pr ocess.
Opera tional Excelle nce (DE)
The syst ematic managem ent of safety, heal th.
envi ro nment, reliability and efficiency to achie ve
wend-cre ss per formance.
DE Expec tations
Enter pr ise-wide req uirements for site -speci fic
processes to control cer tain risks inherent to
our business .
Operati onal Excellence Management System
(OEMS)
A standard approach for achieving wor ld-class per-
formance in safety. health, environment. reliabil it y
and effici ency. The OEMS consists or three parts:
leadership Accountabili ty
Manaq emenl Syst em Process
DE Obj ectives
A descri ption 01D E per formance businesses are
st riv ing to achieve. The corporat io n has esta blish ed
five Objec tives (sho wn on page 1) that illust rate world -
class per for mance. Indiv idual units should align th eir
objectives wit h the cc rcc retrc n's.
DE Processes
Interre lat ed or interacting act ivi ties undertaken to
meet DE Expect ati ons.
Each DE Process has fi ve components:
Pur pose, SCopeand Object ives
Procedures
Resources. Roles and Responsibi lities
Measur ement and Ver ification
Conti nual Improvement
Standard Processes
Speci fic pr ocess. procedu re or performance requ ir e-
ments applicable to all units ente rprise-wide. OE
Sta ndard Processes may also be specific to a sector
or an oper ati ng company.
,r --------~------- ~ ~ ~

Operational Excellence
Opera tiona l Excellence Is the systematic management of
safety, health , enviro nment, reli ability and efficie ncy to achieve
wor ld-cla ss per forma nce.

DE: Vision
To be recognized and admi red by indust ry and the commu ni ti es
in which we operate as wor ld -class in safet y. heal th, environment ,
reliabili ty and eff iciency.

DE: Objectives
Achieve an injury-f ree work place.
Promot e a healt hy workplace and mit ig ate signif icant
health ri sks.
Eliminate spills and enviro nment al incidents. Iden ti fy and
mit iga te key environmen tal risks.
Operate inciden t-fre e wi t h industry-leading asset reliability.
Maxim ize the eff icient use of resour ces and asset s.

Che~
b1