Transcript SPE 61002 Maximise Safety Performance Despite the Client

Safety Management
Sharing lessons between the
oil drilling industry and the
Irish construction industry
Tony Allwright, BE, MEngSc
Tallrite Inc
www.tallrite.com
Presented Live
TCD
ENGINEERING
YEAR 3
STORYLINE – FOR TCD
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Intro – What/Why Safety & Hazards; human
Regulation Mgt vs Safety Mgt
Good performers – how achieved ?
12 ESM principles underlie 4 BBs
Outstanding success, tho easily reversed
Pre-1988 : Conventional legislative approach
Piper Alpha demonstrated widespread failures
– give examples
• Legislative revolution - Safety Case
• UKNS  other NS  other offshore  onshore  global  with or
without legislation
• Only one rule - demonstrate comprehensive hazard management
– ID hazards, ALARP defences (HW + Procedures), contingency plans
– People aware/competent/motivated at all levels
• Places
responsibility with only people who know the ins and outs
Slide 2, IRLSafety2.ppt
What is
Safety ?
[Danger] =
[Hazard] – [Protection]
Managing Safety = Identifying each
hazard … and
Applying the most
effective Protection
Slide 3, IRLSafety2.ppt
Why bother with Safety ?
Because
otherwise
people die
Slide 4, IRLSafety2.ppt
Few and simple
 Weights,
 Height,
 Pressure,
 Tension,
 Fire
 Poison (eg air) ….
 Traffic
Accidents
Human
Factors
Slide 5, IRLSafety2.ppt
Hazards in
Industry
So why
do people die ?
Human
Factors
(80%)
Technical
Factors
(20%)
Safety
Culture
(80%)
Operator
Error
(20%)
Obeying
regulations is
the
Safety
Regulation
and
Safety
Management
sine qua non …
Human
Factors
But not
sufficient
Technical Factors
Inter / National Regulations
Slide 6, IRLSafety2.ppt
Organization of the Drilling Industry
Wells are drilled to search for and produce oil and
gas
vertical, slanted, horizontal, multilateral
on land, offshore and in swamps
usually inhospitable places, often remote
Worldwide 2,200 drilling rigs
Oilcos use contractor rigs plus sundry service
contractors and equipment suppliers
11 major international drilling contractors
3 major international service contractors
Countless other smaller contractors for
everything
Slide 7, IRLSafety2.ppt
Safety Management issues common to the
Drilling Industry & Construction Industry
 Drilling is a “heavy industry” as is Construction
 Apart from subsurface, the main hazards are shared -
weights, height, pressure, tension, fire …. traffic
Drilling sites
do not even
look so
different from
construction
sites
Slide 8, IRLSafety2.ppt
In Safety, ...
Lost Time Accident Frequency
Drilling* Industry Total, Land & Water, World-wide
80
70
Lost-time accidents per million man-hours worked
1963 - Q1/2000
Drilling
has
made
outstanding,
measurable
progress ...
60
50
40
30
20
10
3.2
0
As at Sep 2001
63 66 69 72 75 78 81 84 87 90 93 96 99 01
Slide 9, IRLSafety2.ppt
Source : IADC
Lost Time Accident Frequencies** in 1999/2000
Drilling compared with selected other heavy industries
13.5
US Railroads
20.5
US Construction
13.5
UK Mining
16.5
US Agriculture
13.5
Canada All
12.0
S'pore Hvy Ind
12.5
US Mining
9.5
US All Private
 (LTAs>3 days absence)
8.1
Irish Construction
6.3
UK Construction
4.2
World Drilling
0
5
Updated 9/01 : US + Drlg
Slide 10, IRLSafety2.ppt
… and is
now a
world
leader
**Lost-time accidents
(>1 day unable to work)
per million man-hours worked
10
15
20
Sources : IADC, UK-HSE, OSHA-BLS, Manitoba Govt, Singapore Govt, Irish HSA
the result of
applying ...
1 Visible Management Commitment
2 Line Responsibility
3 Policy
The
Twelve Key
Principles of
Enhanced
Safety
Management
4 High, known standards
5 Performance Measures
6 Realistic Targets
7 Communication & Motivation
8 Training
9 Advisers
10 Audit & Inspection
11 Investigation
12 Contingency Planning
Slide 11, IRLSafety2.ppt
… which underlie
The Four Building Blocks
of
Safety
Improvement
BB1 Hardware
>eg power tools, barriers, hat/boots
BB2 Procedures
> eg for equipment, inspections, permit-to-work
BB3 Skills
> training for HW & procs; on-the-job; self-study
BB4 Attitude (of each individual)
> willingness & motivation to apply - consistently
> to seek out and rectify hazards
Each element builds on the previous one
Contrast cost & effectiveness ….
Slide 12, IRLSafety2.ppt
Ease of
implementation
Cost ($$$)
Cost/Effectiveness of 4 safety elements
LO
•Attitude
•Skills
•Procedures
•Hardware
HI
LO Effectiveness (Lives & Injuries)
But, each element can only work
when the preceding one is embedded
Slide 13, IRLSafety2.ppt
HI
Legislation
• Pre-1988, all developed countries with an
established oil industry (eg USA, UK,
Australia, Netherlands) had their own
(somewhat similar) legislation.
• Rules were prescriptive and very clear about
what had to be done/not done
• But after 1988, a legislative “revolution” took
place, as a result of
• Piper Alpha …..
Slide 14, IRLSafety2.ppt
167 men died
58 survived
Piper
Alpha
Piper Slide
Alpha,
6 July 1988
15, IRLSafety2.ppt
CULLEN INQUIRY INTO PIPER ALPHA DISASTER
held Occidental management
directly responsible for the failings & errors
Condensate pump under repair
switched on  explosion
Pump room walls fireproof not
explosion proof fire spread
2 adjacent oil platforms fed
further oil to the fire
Fire heated gas import lines 
failed massive explosion/fire
Sprinkler system rusted up
Men assembled in smoky accomm,
where most loss of life occurred
Survivors jumped 100’ into sea
Lord Cullen :
Deficient PtW system; no training;
no enforcement; poor audits
Design fault; inadequate hazard
analysis
No inter-platform inter-oilco
analysis, training or drills
Known hazard - but no protection
of gas lines
Known problem – 3 yrs no action
No evacuation drills;
No commanders (manager killed)
Contrary to (minimal) training
“Occidental had adopted a superficial attitude to safety”.
“Lack of forethought and lack of analysis, … poor management."
"The safety policy and procedures were in place : the practice was
deficient"
Slide 16, IRLSafety2.ppt
Legislative Revolution
• Cullen inquiry showed systems to be far too complex for
a legislator to ever be able to legislate effectively • Led to “SAFETY CASE” concept
• A revolutionary change that over time spread beyond
the UK North Sea to – rest of the North Sea
– rest of offshore
– rest of the world, onshore and offshore
• driven by
– Govts and
– the industry itself
Slide 17, IRLSafety2.ppt


SAFETY CASE
No longer - “obey the rules of the legislators”
Now, every installation (eg rig, platform, gas plant) must
“Demonstrate your comprehensive hazard management”, ie
–
–
–
–
–
–
Identify your hazards;
Your ALARP defenses (both Hardware & Procedures);
Your contingency plans;
Your people communication systems and processes;
Workforce aware/involved/competent/motivated at ALL levels
Your audit & inspection programme;
• Places responsibility with the only people who know the ins
and outs of the business - the bosses and workforce
• No escape for management …
– “I followed the legislator’s rules, therefore I’m not to blame”
– “Indeed you are; the Safety Case rules were your own !”
Slide 18, IRLSafety2.ppt
A SAFETY CASE FOR EVERY INSTALLATION
 Has fostered a radical change in safety culture across the
global oil industry, including the regulatory bodies.
 The norm (for the best) now includes :
• Companies consulting their workforce at all stages
• Interlocking Safety Cases when two installations work
together (eg rig and platform)
• Pre-project workshops involving client & all sub/contractors
• Intelocking weekly/monthly safety meetings covering ALL
• No-blame incident-reporting & investigation to ID weakspots
• Unsafe act identification by all staff all the time
• Openness; measurements; honest reporting
PROTECT HUMAN LIFE; NOT “STAY OUT OF JAIL”
Slide 19, IRLSafety2.ppt
SAFETY
Not an intellectual exercise
About sending people home
healthy and happy to their
families
Killing and hurting people is not
part of our business …
- we are not an army at war

Slide 20, IRLSafety2.ppt
Slide 21, IRLSafety2.ppt
LTAF : Drilling Industry Total,
Land & Water, World-wide
80
Lost-time accidents per million man-hours worked
70
60
50
40
33
dead
30
(98+99)
20
10
3.4
0
63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99
Source : IADC
Slide 22, IRLSafety2.ppt
big, good
E&P companies
LTAs per MLN man-hrs
10
10.0
1
1.0
Trend
Flattening
Log Scale
LTAFs of two
Company & Contractors
combined
100.0
Lost-time accidents per
0.1
0.1 million man-hours
Client & contractors combined
86 87 88 89 90 91 92 93 94 95 96 97 98
10.0
10
Log Scale
1.0
1
Trend
Reversing
0.1
0.1
77
79
81
Slide 23, IRLSafety2.ppt
83
85
87
89
91
93
95
Source : WOP, PDO
97 98
What is blocking further progress
when Hardware, Procedures, Skills
and Attitudes are all in place ?
Human behaviour requires steering
Attitude of people provides this but
not enough direction, being based on :
 the individual and/or
 his own company
not the total operation
not the cultures of different companies
Thus, despite good attitude by all ...
Slide 24, IRLSafety2.ppt
Client/Contractor Relationship
can be an impediment
Client too dominant; everyone complacent
Delivers instructions - then relaxes
Contractor receives instructions
- no need to think
Suffocates contractors’ own ideas & identity
But client’s solutions may not be optimum
Not tuned to contractor’s identity/culture
Different clients make different demands
Contractors’ people bound to be confused
Slide 25, IRLSafety2.ppt
Client
A
Client
B
Contractor Contractor Contractor Contractor
1
2
3
4
Pity Contractors 2 and 4
- which client’s rules
do they apply ?
Slide 26, IRLSafety2.ppt
What Client should NOT seek
• “Anything you ask us, Mr Client, we will do it”
• This will only ensure basic, simple rules are
obeyed (blindly),
• But this is not enough !
• Everyone in every company/management
must apply his/her best thought processes,
effort and commitment, continuously
Slide 27, IRLSafety2.ppt
What Client and Contractor
each needs in equal measure :
To have his own Safety identity
-
Safety Policy
Safety Management System
Safety Plans
"This is the way we do things around here”
To come up with his own ideas
-
Helping himself
Helping the client
Helping the client help his other contractors
To take full ownership and responsibility
-
Pushing his own safety message
Accepting his own accidents (without quibble)
To require the same of his own subcontractors
To be prepared to change his behaviour …..
Slide 28, IRLSafety2.ppt
How each Contractor or Sub-contractor
should change his behaviour :
 Do the right things not because Client wants it
but because Contractor believes in it
 Make clear to his people that this is what this
company demands
 Does not simply wait for the client’s say-so
 Doesn’t confuse his people by setting
different standards for different customers
 Tells Client what he thinks Client is doing
wrong
Slide 29, IRLSafety2.ppt
How Client should
change his own behaviour :
listen to and respect his contractors’ views
recognize their answers may be superior
encourage contractors to take key decisions
(eg to lead task forces or investigations)
Always combine client & contractors stats
Treat all his contractors and sub-contractors :
on a wholly equal footing with himself
no party more important than any other (incl self)
which leads to ………
Slide 30, IRLSafety2.ppt
Optimised Relationships :
the preceding one is
embedded •Skills
•Procedures
Ease of
implementn
Cost ($$$)
The 5th Safety Element
LO Each element
•Relationworking
ships
only when
•Attitude
•Hardware
HI
LO Effectiveness (Lives & Injuries) HI
Slide 31, IRLSafety2.ppt
What is the Client/Contractor
“Relationship” ?
Process of continuous communication
   
 Within & between all companies in the operation
Open-minded listening to the others’ views
Ignoring pecking order, seniority, status etc
Using only the force of rational argument
Arriving at safety solutions that are
optimum & agreeable for all parties
Slide 32, IRLSafety2.ppt
Who is responsible for managing the
client/contractor relationships ?
Senior Managements of all the
companies involved in the operation should
initiate and provide impetus for the
multidirectional communication required
within their companies
between their companies
But any member of staff can and should
discuss with peers & counterparts and press
for change from within.
Don’t wait for the boss or the client
Slide 33, IRLSafety2.ppt
What might be a first step ?
Organize a Joint Conference
Senior & middle managers of
client all contractors &
subcontractors
Jointly devise an agenda to
develop, together, an action plan
and identify problems, blockers
etc
Slide 34, IRLSafety2.ppt
COST of Managing the
Relationship ?
Mainly personal effort, belief, commitment by everyone
but especially the bosses
Very little in $$$
But intense communication also yields
improved technical performance
Can expect a handsome return in both
money and
human lives
Slide 35, IRLSafety2.ppt
Lost Time Accident Frequency
Of a large, well-performing, land-based operation
100.0
Lost-time accidents per million man-hours
The result of
Client & contractors combined
successful
Relationship
Management
Log Scale
10.0
1.0
0.1
77
79
Slide 36, IRLSafety2.ppt
81
83
85
87
89
91
93
95
Source : PDO
97
99
Oil price, rig count etc
change nothing !
• Preserving integrity is vital to business
survival in hard times (as in good)
$


Financial (business controls)
Technical (maintaining equipment)
HSE (protecting people & environment)
• Integrity should form part of every
company’s core Business Objectives
Slide 37, IRLSafety2.ppt
Influencing People’s Attitudes
• Requires continuous, consistent, focused
communication
 amongst all companies in the operation
 at all levels
 in all directions
• Requires capturing the hearts and minds of



client,
contractors and
sub-contractors
Slide 38, IRLSafety2.ppt
ALIKE
Slide 39, IRLSafety2.ppt
©www.tallrite.com
©www.tallrite.com