Excellence in
Stationary Equipment Reliability
by
F. Walter Pinto
Regional Reliability Manager
Lyondell Chemical Company
Excellence in
Stationary Equipment Reliability
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Purpose
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Present elements of a successful stationary equipment
reliability program
Share best practices, success stories and lessons
learned
Information and tools are widely available
Challenge is in IMPLEMENTATION
Stationary Equipment focus - principles apply to
other disciplines
Lyondell Chemical Company
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Leading global manufacturer of chemicals and plastics, a
refiner of heavy, high-sulfur crude oil and a significant
producer of fuel products
Operations on four continents, nearly 8,000 employees
Lyondell includes 3 wholly-owned businesses -- Equistar
Chemicals, Millennium and Houston Refining
Leading capacity positions in all major products
# 106 in the Fortune 500
Ranked among the industry best in on-the-job safety
Recognized for excellence in corporate governance
Unique culture through integration of predecessor company
best practices
Extraordinary success in developing single reliability culture
Excellence in Reliability
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Reliability : Availability of operating unit on demand
Focused on “Excellence” and not on “Compliance” applies to all equipment, NOT JUST PSM covered!
OPERATIONAL EXCELLENCE PROGRAM
Safety – Environment – Reliability – Cost – Quality
People – Community
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Demonstrated experience in reliability; driving excellence
in safety, environmental, quality and cost performance
Competitive Advantage
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Why Focus on Stationary Equipment?
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Accounts for >50% of the capital /
maintenance cost and reliability events
Safety, Environment and Reliability
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Accounts for a large % of total equipment
Very high consequence due to stored volume
Accounts for very high % of incidents
Critical components in thin sections by design
Extreme operating conditions and damage
mechanisms. In most cases damage is not
immediate
On-line feed back is not available
Stationary Equipment reliability leads overall reliability.
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Strong
Firefighting
Excellence
Weak
PEOPLE
Systems X People = Performance
Chaos
Bureaucracy
Weak
Strong
SYSTEMS
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Stationary Equipment Reliability Focus Areas
Management Systems
• Performance / Inspection / Maintenance
Standards, Workflows, KPI and Audits
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Management Support
Engineering Practices
• Continuous, consistent, and at
the highest and all levels
• Global Engineering Standards,
master databases
People
Reliability Practices
• Knowledge transfer, benchmarking,
unit inspector concept, training
• Corrosion Manual, RBI, Data
Management System, Focused
Reliability Improvement Programs such
as CUI
Implementation Discipline
Operations Discipline
• Maintenance, turnaround, projects,
purchasing, warehouse, QA/QC
• MI-critical variables, MOC,
operator rounds, incident reporting
Management Systems
Compliance Audits
Verification system is functioning by outside
representatives.
Key Performance Indicators
Performance-related actionable metrics for
reliability and cost improvement
Engineering, Inspection and
Maintenance Standards
Mandatory technical requirements – Single
owner responsibility and accountability
Inspection and Maintenance
Procedures
“How to” documents – plant procedures
containing workflow, forms, roles and
responsibilities and accountability
Performance Standards
Reliability Beliefs and
Principles
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Management systems required at each site
Example: A management system exists for
notifying past due inspections and
recommendations
Foundation
Engineering Practices
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Global Engineering Standards and Piping Specifications
Single sponsor – responsibility and accountability
Mandatory requirements – reduces debate
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Requires strong management support for implementation
Plant or project addenda and deviation process
Administered and kept evergreen by a dedicated group
Continuous improvement - Process to incorporate lessons learned
and best practices
Robust computer-based systems for engineering data
management
Reliability by design
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Inspection Management
• Optimization of inspection
plan and interval
• Materials Diagrams
• RBI, RAT, MOC
• Leak assessment
Planning &
Scheduling
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Unit and equipment inspection plans
Jurisdictional requirements
Monthly schedule review
Inspection personnel qualification
Assessments
• Inspection data
management
• Turnaround Inspection
reports
Records Update
• Maintenance QA/QC
Recommendations
• Receiving Inspections
• Conformance to standards
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• Inspection results
• Observations and findings
Inspection
• Condition assessment
• Fitness-for-service evaluation
Evaluation
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Recommendation prioritization
Tracking and closure
Monthly schedule review
Deferral process
Inspection Planning
Tools
API RBI
Application
Heat exchanger bundle
prioritization for retube
and inspection
RV Tool
Relief valve interval
optimization.
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External inspections in lieu of
internal inspections (general
corrosion) resulting in turnaround
extensions and cost reduction
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Focus on external damage
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Cost savings through interval
optimization
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Cost savings through storage tank
internal inspection interval
optimization
Pressure vessels, piping
inspection interval and
plans
Retube Analysis Tool
(RAT)
API RBI, draft Appendix
O with internal best
practices
Benefits
Storage tanks
Improved bundle reliability
Minimizing unplanned retubes
RBI Implementation
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Over 30,000 equipment items evaluated
$6.5MM annual cost avoidance
Study results are being used to:
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Determine inspection TA work scope
Focus resource spending to match damage source → 80%
leaks are external
Unit inspector, corrosion specialist and process engineer
participation is critical
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Identify and budget for CUI
Accuracy of process, design and inspection input data
Review of results (especially if a contractor is involved)
Mock Exchanger
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Suggest having internal
qualification process for
specialty NDE
Qualification of NDE
operator, hardware, and
technologies through
performance demonstration
test
> 60% of technicians failed
the tests
Inspection Data Management Tools
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Data
SAP
(W.O. System)
Corrosion Rate
Last Inspection Date
UltraPIPE
CAD
Drawings
Data Storage
Management Tool
Meridium
MERIDIUM
Registry
CR & Insp. History
API-RBI
Software
Meridium
Inspection
Manager
Risk, Insp. Plan
Integrates all plant
databases and
spreadsheets
Design Spec
Data
Analysis Tool
Intergraph/
Documentum
Data Storage
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Focused Reliability Improvement Programs
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Issues are global in nature and require greater focus in
terms of resources and commitment - Integral to Lyondell’s
long term reliability philosophy
•Corrosion-under-Insulation (CUI)
•Inspection catch-up
•Storage tank inspection (AST)
•Structural remediation
•Heat exchanger reliability
•Cooling water performance
improvement
•Painting program
•Furnace re-tube
•Auto-refrigeration and brittle
fracture analysis
•Underground leak prevention
•Technical Directives – Small bore
branch connections
• Success factors: champions, leadership and ownership
Special programs can make step improvement
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CUI Program
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Carbon steel in 25 – 300 degree F and stainless steel in ESCC
temperature range
Over $150MM committed in 12 years
Ceramic coating/metal cages for personnel protection
Insulation Elimination
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New Coatings and Fire Proofing
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Coatings for cold and damp surfaces
Subliming-type fireproofing
Rope Access
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Areas not requiring personnel protection and not justified for energy
conservation
Tower CUI inspection and caulking
Evaluation of each application for cost effectiveness
CORROSION-UNDER-INSULATION FINDINGS
Plant Outages; Flaring;
Fires; Major Losses
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•Permanent repairs done on the run
•Temp. Repairs, Leak Boxes
•OK to run, but must repair at T/A
•Repairs completed during T/A
•Pin hole leaks, installed leak clamp
CUI active, metal loss acceptable,
blast, clean and paint
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Findings Requiring
Mechanical Repair
CUI Findings, Not
Requiring Repair
17500
15000
300
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200
100
12500
10000
7500
5000
Operations Discipline
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Management of change process – involvement of inspection
department
Operator rounds
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Equipment and piping visual inspections
Example: Insulation damage and CUI awareness
Reporting all non-utility leaks. Consider leaks as failure of
RBI to predict - opportunity for improvement
MI critical variables and operating envelop. Incident
investigation when exceeded and action plan
Operator training
Operators are first-line inspectors
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Maintenance / Turnarounds / Projects
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Risk-based tools for turnaround scope development and
prioritization
Total cost of ownership philosophy
Approved Vendor List and audit program
Vendor/Contractor Alliances
Shop fabrication and field construction QA/QC
Receiving inspection, PMI, warehouse control
Quality performance indicators
This is where the “rubber meets the road”
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KPIs and Audits
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Performance related actionable metrics to improve reliability
and cost objectives
Internal metrics: Past due inspections & recommendations,
Number of leaks, Weld reject rates, PMI reject rate
External benchmarking - Solomon and API survey
Performance Audits
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Verification of management systems
Verification of performance - vertical slice audit
High level plant management support
Know where you are and where you are going
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Leak Reduction Success
Investment, ($ in millions)
90
1.6
80
1.4
Number of Leaks
70
1.2
60
1
50
0.8
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0.6
30
0.4
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0.2
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98
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96
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94
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92
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90
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88
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86
0
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84
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82
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Investment ($ in Millions)...
Leaks
People
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Staffing analysis - benchmarking
Unit inspector concept (~250 PV per inspector)
Corporate specialists integrated with manufacturing
Participation in industry organizations
Knowledge transfer
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Engineering standards, guidelines, best practice documents,
technical publications
Best practice teams & company reliability conferences
Technical training and mentoring program
Don’t let knowledge leave
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Best in class Inspection Organization Structure
Pressure vessels per unit inspector : 220
Reliability Supt.
Note: All four unit inspectors
are company employees
Inspection
Supervisor
CAD Draftsman
Data Clerk
Inspector #1
Plant 1
Inspector #2
Plant 2
Inspector #3
Plant 3
NDE Tech #1
NDE Tech #2
NDE Tech #3
Inspector #1
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280 pressure vessels
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504 piping circuits
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254 PSVs
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Inspector #2
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329 pressure vessels
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592 piping circuits
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332 PSV's
Inspector #3
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186 pressure vessels
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335 piping circuits
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200 PSV's
Inspector #4
Tank Farm, QA/QC
NDE Tech #4
QC Inspector
Inspector #4
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83 pressure vessels
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149 piping circuits
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78 AST's
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186 PSV's
Management Support
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Continuous, consistent and at all levels
Executive management support
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Demonstrate Return on Investment (ROI)
Long term vision, leadership and commitment
Management Reliability “Lobbyist” or Champions
Have your Vice Presidents or Plant Managers refused
to reduce reliability program budget in financially
difficult years?
Ours have!!!
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Concluding Remarks
Show me the money!
• Cost
• Quality
Reliability
• Safety
• Environment
• People
• Community
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Bottom
Line
Glossary
API – American Petroleum Institute
PSM – Process safety management
AST – Aboveground storage tank
QA – Quality assurance
CUI – Corrosion under insulation
QC – Quality control
ESCC – External stress corrosion
cracking
RAT – Retube analysis tool
KPI – Key performance indicators
MI – Mechanical integrity
MIRA – Mechanical integrity risk
assessment
MOC – Management of change
NDE – Nondestructive examination
PMI – Positive material identification
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RBI – Risk-based inspection
RV – Relief valve
TA – Turnaround