INTRODUCTION TO RBI & API 580 RBI Training Course Module 01 Scope of the Training Introduction to RBI RBI Methodology Theory + with hands on exercises Likelihood calculation Consequence calculation Case Study with the RBI software: refinery unit Data preparation Screening analysis Detailed analysis Agenda Module RBI Training Program. Breaks assumed during the day but not shown. Timing approximate. Item 1 2 3 4 5 6 7 8 8 9 10 11 12 Introductions - Installations, Introduction to RBI Lunch Likelihood theory 1 Likelihood theory 2 Likelihood theory 3 Consequence theory and exercises Lunch Project Start up and Data Organization. Screening Analysis Introduction Detailed analysis - Data entry Lunch Detailed analysis - Data entry Establishing criteria and using the IP tool Plant inspection plans Reporting features / information output Lunch Other Features Start Day 1 09:00 12:30 13:30 15:00 Day 2 09:00 10:30 12:30 13:30 Day 3 09:00 11:00 12:30 13:30 Day 4 09:00 11:00 12:00 12:30 13:30 End Objectives 12:30 13:30 15:00 17:00 Thinning: calculation principles and inspection updating Other limit states 10:30 12:30 13:30 17:00 11:00 12:30 13:30 17:00 11:00 12:00 12:30 13:30 16:00 Other likelihood models Consequence theory Inventory groups and Corr circuits Using the screening tool Model creation and data entry issues. Model creation and data entry issues. Inspection Planning using risk criteria Creating inspection plans from the RBI guidelines. Extracting information from software Other features INTRODUCTIONS (Name, Organisation type of work, why interested in RBI, English ) Presentation Topics - This Session RBI History – API Standards General Introduction The benefits of RBI What RBI is How RBI fits within existing plant systems Implementing RBI Some case studies RBI History Probabilistic risk analysis techniques Started in the nuclear industry (1970s) Quantitative risk assessment (QRA) in the Process Industries Canvey Island and the Rijnmond Report (1980s) Software tools for QRA Eg DNV-Technica develops SAFETI and PHAST risk assessment tools (1980s) ASME RBI principles overview document in 1991 API develops Risk Based Inspection Methodology (1990’s) DNV main API sub-contractror API Base Resource Document 581 (2000) API RBI software API RP 580 (2002) RBI History DNV develops ORBIT Onshore 1997-now Some Reasons: Need for a RBI software for all onshore installations – API 581 focuses on refineries Improved consequence calculations with PHAST link Enhancements in likelihood calculation – ORBIT uses equations for limit state implementation Need for a robust software architecture & professional software development and maintenance ORBIT is consistent with the API 580 RBI standard ORBIT and API 581 share philosophy/technology API RBI development by Equity Eng. (2002-now) API RP 581 Update (2008) API RP 580 Update (2009) API Inspection and FFS Standards Existing RBI & FFS documents API 750 API 510 API 570 RBI API RP 580 API - BRD P 581 RISK BASED INSPECTION MPC FITNESS FOR SERVICE FFS API RP 579 ASME API 653 Working Documents RBI API RP 581 Research & reference Documents New Documents Presentation Topics - This Session RBI History General Introduction The benefits of RBI What RBI is How RBI fits within existing plant systems Implementing RBI Some case studies A Typical Plant Storage and export Loading facilities Processing to give added value. Typical Operating Objectives Operate safely and profitably Maintain high availability and throughput. Minimize shut downs. Extending shut down intervals Prevent/reduce leaks. Class question? What are the typical plant objectives here? Typical Plant Issues Challenges Old Plants Large, complex units Integrated Feed Systems Many degradation mechanisms Raw material price PROCESS CORROSION - Continuously degrading integrity Corrosion Principles Corrosion rate is measured as weight loss per unit area and is expressed in mils per year (mpy) or mm/y. Corrosion Rates can be affected by: Passivity forming protective surface films (including corrosion inhibitors, paints and coatings) Oxygen content Flow velocity/rates Temperature pH effects (Low and High) Contaminants/intermediates Some Corrosives Found In The Process Industry Water Oxygen Naphthenic Acid Polythionic Acid Chlorides Carbon Dioxide Ammonia Cyanides Deposits Hydrogen Chloride Sulfuric Acid Hydrogen Phenols Dimer and Trimer acids Other Low Temperature Corrosion Below 500°F (<260°C) Occurrences Inorganic compounds such as water, hydrogen sulphide, hydrogen chloride, sulphuric acid, salts, etc. Presence of water (even in very small amounts) Electrolyte in hydrocarbon stream Hydrocarbons in water streams creating acidic conditions Solids .. Under deposit Organic acids Vapour Streams at water condensation points Obeys electrochemical laws Stable films can reduce or prevent corrosion Low Temperature Corrosion From Process chemicals From Process contaminants Not caused by clean hydrocarbons Caused by inorganic compounds such as water, hydrogen sulphide, hydrogen chloride, sulphuric acid, salts, etc. High Temperature Corrosion Above 500°F (>260°C) No water present Result of a reaction between metal and process ions (such as oxygen O-, sulphur S, etc.) High Temperature Corrosion Important due to serious consequences High temperatures usually involve high pressures. Dependent on the nature of the scale formed General thinning Localized thinning (pitting) Inter-granular attack Mixed phase flow Metallurgical changes Situations Leading To Deterioration Normal operation, upset, startup /shutdown conditions Material/Environment condition interactions Many combinations of corrosive process streams and temperature/pressure conditions. In the absence of corrosion, mechanical and metallurgical deterioration can occur. Weather effects …. Forms Of The Damage General loss due to general or localized corrosion Pitting attack Stress Corrosion Cracking (SCC) Metallurgical Changes Mechanical damage High Temperature Hydrogen Attack (HTHA) Damage types occur with specific combinations of materials and environmental/ operating conditions Stress Corrosion Cracking Detection SOHIC in soft base metal. Stress-Oriented Hydrogen Induced Cracking In contrast to general corrosion, SCC is very hard to detect visually even when it has progressed to an extreme condition. Types of Stress Corrosion Cracking Chloride stress corrosion cracking (Cl-) Nitrates Caustic stress cracking (NaOH) Polythionic acid stress corrosion cracking Ammonia stress corrosion cracking (NH4) Hydrogen effects (in steel) Sulfide stress corrosion cracking SSC, hydrogen induced cracking HIC, stress oriented hydrogen induced cracking SOHIC Hydrogen cyanide HCN Others High Temperature Hydrogen Attack (HTHA) Carbon and low alloys steels exposed to hydrogen above 430°F (221°C) Hydrogen Partial pressure above 200 psi (>14 bar) Dissociation of molecular hydrogen to atomic hydrogen H2 -> 2 H+ Atomic hydrogen permeation into the steel Reaction of atomic hydrogen with carbon in steel Formation of methane at discontinuities API 941 recommended for new installation High Temperature Hydrogen Attack Longitudinal Weld Magnification: 500x Etch: 2% Nital Metallurgical And Environmental Failures Grain growth Graphitization Hardening Sensitization Sigma phase 885 F embrittlement Temper embrittlement Liquid metal embrittlement Carburization Metal dusting Decarburization Selective leaching Mechanical Failures Incorrect or defective materials Mechanical fatigue Corrosion fatigue Cavitation damage Mechanical damage Overloading Over pressurization Brittle fracture Creep Stress rupture Thermal shock Thermal fatigue Conclusions There are many causes of equipment failures in the process industry. Many are common and well documented. Other, less common deterioration mechanisms are not well documented. Deterioration is the result of metal and environment/ operating conditions combinations. These combinations vary somewhat in different process units. Detection and characterization of the different forms is a challenging and critical activity. Tools exist to assist to assess the severity of corrosion or determine the appropriate materials of construction For Example: NaOH Chart These Tools Are Generally Used By Experienced Corrosion Engineers. They can also be implemented in software as corrosion evaluation supplements Determining Equipment Integrity Requires information about the level of degradation: Monitoring (Fluid corrosivity) and Inspection (Wall condition) “MONITORING” POSSIBILITIES Monitoring Fluid Composition/Quality Pressure, Temperature, pH Contaminants when relevant Fluid corrosivity Corrosion probes (e.g. Weight loss, electrical resistance, linear polarization) Function of protective systems e.g. inhibitor injection Inspection: Pressure boundary condition checks, e.g. Visual examination Thickness measurements Other checks Non Destructive Examination - Inspection Selecting Inspection method. Factors to consider Type of defect General metal loss Localized metal loss Pitting Cracks Metallurgical changes Location of defect On the outside wall of an item The inside wall Within the body of the wall Associated with a weld Selecting Inspection method. Factors to consider: Material of construction Magnetic Non magnetic Operating at high temperatures Insulated Equipment geometry: May be hard to access May require extensive activity e.g. scaffolding, entry preparations, to perform the inspection Many considerations when determining how to inspect. Also, need to justify the need for inspection. NDE Methods American Society for Nondestructive Testing (ASNT) Acoustic Emission Testing (AE) Volumetric Eddy Current Testing (ET) Surface/ Volumetric Infrared/Thermal Testing (IR) Surface Leak Testing (LT) Magnetic Particle Testing (MPT) Surface Neutron Radiographic Testing (NR) Volumetric Penetrant Testing (PT) Surface Radiographic Testing (RT) Volumetric Ultrasonic Testing (UT) Volumetric Visual Testing (VT) Surface Magnetic Flux Leakage (MFL) Penetrant Testing Penetrant solution is applied to the surface of a pre-cleaned component. The liquid is pulled into surface-breaking defects by capillary action. Excess penetrant material is carefully cleaned from the surface. A developer is applied to pull the trapped penetrant back to the surface The penetrant spreads out and forms an indication. The indication is much easier to see than the actual defect. Magnetic Particle Testing A magnetic field is established in a component made from ferromagnetic material. The magnetic lines of force or flux travel through the material, and exit and reenter the material at the poles. Defects such as cracks or voids are filled with air that cannot support as much flux, and force some of the flux outside of the part. Magnetic particles distributed over the component will be attracted to areas of flux leakage and produce a visible indication. Radiography Testing X-rays are used to produce images of objects using film or other detector that is sensitive to radiation. The test object is placed between the radiation source and the detector. The thickness and the density of the material that X-rays must penetrate affect the amount of radiation reaching the detector. This variation in radiation produces an image on the detector that shows the internal features of the test object. Ultrasonic Testing High frequency sound waves are sent into a material by use of a transducer. The sound waves travel through the material and are received by the same transducer or a second transducer. The amount of energy transmitted or received, and the time the energy is received are analyzed to determine the presence and locations of flaws. Changes in material thickness, and changes in material properties can also be measured. Ultrasonic Principles Angle Beam (Shear Wave) Straight Beam (Longitudinal Wave) Ultrasonic Presentations TOP VIEW (C-SCAN) A-SCAN END VIEW (B-SCAN) SIDE VIEW (D-SCAN) Risk Based Inspection Presentation Topics General Introduction The benefits of RBI What RBI is How RBI fits within existing plant systems Implementing RBI Some case studies The Value of RBI What is the first duty of Business? “The first duty of business is to survive, and the guiding principle of business economics is not the maximisation of profit - it is the avoidance of loss.” Peter Drucker The Key Benefits of an RBI Study Identify the high risk items Understand the risk drivers and develop mitigation plans Focussed inspection plans which: Increase safety and reduce risk Help to improve reliability Often results in cost benefits due to: Reduced turnaround time and/or A reduction in the number of items to be inspected The associated “maintenance” costs e.g access arrangements Normally an overall reduction in risk and cost savings from the inspection activity. Presentation Topics General Introduction The benefits of RBI What RBI is How RBI fits within existing plant systems Implementing RBI Some case studies What Is RBI? A method/process for prioritizing equipment for inspection based on risk. It determines the risk associated with the operation of specific items of equipment and identifies the key factors driving the risk. A tool which demonstrates the value (or not) of performing specific inspection activities. It is a decision making management tool applied to the issue of Inspection Planning. Equipment Types •Pressure Vessels—All pressure containing components. •Process Piping—Pipe and piping components. •Storage Tanks—Atmospheric and pressurized. •Rotating Equipment—Pressure containing components. •Boilers and Heaters—Pressurized components. •Heat exchangers (shells, floating heads, channels, and bundles). •Pressure-relief devices. Risk Based Inspection Strategic Process Increasing reliability (revenue) Lowering cost Lowering risk Integrated Methodology Risk factors Likelihood Consequence Supports effective decision making What Constitutes an Undesirable Event In RBI? Failure is defined as a leak of the equipment contents to the atmosphere; “breach of containment” or LOPC Heat exchanger failures are channel or shell leaks. Pump failures are due to seal leaks and adjacent piping fatigue cracking. RBI - Detailed Analysis Components in the calculation of the risk = Risk Likelihood of Failure MF x Fp x Fm x Fu Abbreviations: : Damage DF: Factor GFF: Generic Failure Frequency x GFF x DF Damage Area. Age Equip. Repair Damage Type/Rate Fi : Process, Mechanical & Universal Factor Fdomino:Domino Eff.Factor MF: Management Factor X Consequence of Failure Fdomino x CoF Other repairs Injury Business Int. Inspection Effectiveness RBI_Key_Concepts.vsd Common Damage Mechanisms in RBI Damage Mechanisms Internal Thinning • HCl Stress Corrosion Cracking External Damage • Caustic General • HT Sulfide . • Amine CUI & Nap. Acid • SSC • HT H 2S/H 2 • HIC/SOHIC Cl SCC • H2SO 4 • Carbonate • HF • PTA • Sour Water • ClSCC • Amine • HSC-HF • HT Oxidation • HIC/SOHIC-HF Brittle Fracture Piping Fatigue HTHA Lining PRVs CALCULATING THE FAILURE FREQUENCY MANUAL ACTIVITY Damage factor Calculation Estimate the likely damage state / severity Determine the Likelihood of being in one of the different possible damage states: Consider data source Assess the inspection history (Effectiveness) Inspection Effectiveness Failures only occur when the rate of degradation is higher than expected. Damage states 1 No worse than predicted X% 2 Up to 2x worse than predicted Y% 3 Up to 4x worse than predicted Z% Calculate the failure frequency for each state using the relevant limit state equation Calculate the weighted failure frequency for the item based on the Likelihood of being in the different states. Steps in Bayes_LoF Undesirable Consequences in RBI HEAT from flames destroys equipment, injures people PRESSURE WAVE from explosions knocks down structures and people, causes flying objects TOXIC cloud, for some duration, causes toxic exposure injuries ENVIRONMENTAL DAMAGE due to spill (currently only included in AST RBI software) Consequence Calculation Process Information Physical Properties Equipment Information Calculate Release Rate or Release Mass Assessment of Incident Outcome Damage Areas Safety Costs Business Interruption Costs Equipment Damage Costs Amount of Effort - RBI vs QRA Likelihood Consequence QRA* RBI** * Quantitative Risk Assessment ** Risk Based Inspection Input Data For A Quantitative RBI Assessment The main input data collected Item Design Data Operating Data OD Tnom Matl Ins Press Temp Fluid Temp. Press Fluid A Damage mechanisms Mechanism Severity/rate Thinning, SCC, Furnace, HTHA,.. Inspection data Done? Result? What do we expect to find and what at what severity? What has been looked for and what has been found B C Identify all items For some damage mechanisms, e.g. SCC, brittle fracture, fatigue, other data may be needed e.g. PWHT, Charpy test temp. Is it operating as intended? RBI Results? Calculation of the risk with a lookahead: Item Type From To Damage no. Mechanism 1 Pipe 2 Vessel 3 Fin Fan What (Risk priority) Inspection Plan GFF DF LoF CoF Risk Insp. Insp. New Type Date DF Thinning CUI Erosion 3000 100 0.5 Why (Damage mech. & factor) Where / How (Item - Effectiveness - Material - Mechanism) When (Basis Inspection planning targets.) The Presentation Of Risk Likelihood Category 5 Medium-High Risk 4 High Risk Med. High Risk 3 2 1 Medium Risk Low Risk A B C D Consequence Category E Likelihood of Failure How Will This Picture Change With Time? A B C A B C D E Consequence of Failure Likelihood of failure will increase over time because of timedependent material degradation Likelihood of Failure Risk Increase Over Time A B C D E Consequence of Failure Likelihood of Failure What is the effect of Inspection ? A B C D E Consequence of Failure Steps Leading To The Inspection Plan Risk Criteria High Risk Risk cannot be justified save in extraordinary circumstances Unacceptable region Tolerable only if risk reduction is impracticable or if it cost is grossly disproportionate to the improvement gained The ALARP or Tolerability region (Risk is undertaken only if a benefit is desired) Tolerable if cost of reduction would exceed the improvement Broadly acceptable region (No need for detailed working to demonstrate ALARP) Necessary to maintain assurance that risk remains at this level Negligible risk Traditional Vs. Risk-Based Inspection Planning Traditional RBI Inspection based on experience (usually by previous leaks and breakdowns) Inspection based on experience and systematic (risk) review Inspection effort driven by “Likelihood of failure” Inspection effort driven by “risk”, i.e. Likelihood of failure and consequences of failure Reactive “fire fighting”, running behind the ball Pro-active planning and execution of inspections Use of appropriate / Inappropriate NDT techniques Systematic identification of appropriate NDT techniques Inspection Program Options for Influencing Risk Change inspection frequencies (when) Change inspection scope / thoroughness (what) Change inspection tools / techniques (how) RBI - Applications Risk-prioritized Turnaround planning High safety/reliability impact = more attention (in order to lower risk Less impact safety/reliability = less attention (in order to lower costs) Result: Lower equipment life cycle costs Fewer incidents / outages Fewer unnecessary inspections Higher reliability May also assess the impact of delaying a turnaround/ shut down RBI - Applications Special focus studies e.g.: Corrosion under insulation. Positive material identification. Hydrogen sulfide etc. What if studies e.g. Assess the impact of process changes. Assess the impact of a different feed. Can RBI Help To Prevent All Releases? Where Inspection Can Help About half of the containment losses in a typical petrochemical process plant can be influenced by inspection activities Mechanical Failure 43% 11% Natural Hazard 5% Operational Error 21% Process Upset 1% Sabotage/Arson Unknown 14% Design Error 5% Source: Large Property Damage Losses in the HC-Chemical Industries - A thirty year review, 17th edition, J&H Marsh& McLennan. Managing Risk - Considerations THE SYSTEM FACTORS "HARDWARE" "SOFTWARE" PEOPLE Risk Exposures (Potential Losses) Experienced Losses - Cause and Costs Percentage Avg. $ loss % and MM$ 100 50 0 Mech. Fail. Operator Process Natural Unknown error upsets hazards Design Sabotage errors /arson Percentage 43 21 14 11 5 5 1 Avg. $ loss 72.1 87.4 68.9 81 55.7 82.5 37.1 Source: Large Property Damage Losses in the HC-Chemical Industries - A thirty year review, 17th edition, J&H Marsh& McLennan. The Equipment Involved Losses vs Equipment Type % of losses Avg. $ loss % and MM$ 100 50 0 Piping Tanks React Tower Pump Drum Heat Unkno Vesse Heater Misc. ors s s/Com s exch. wn ls s % of losses 33 15 10 8 8 7 5 5 5 2 2 Avg. $ loss 76.9 61.9 151.8 86.9 68.1 38.9 69.6 60.6 34.6 82.4 16.3 Presentation Topics General Introduction The benefits of RBI What RBI is How RBI fits within existing plant systems Implementing RBI Some case studies Managing Integrity Plant Integrity Normally fixed. Cannot be neglected! Management System RBI project procedures. Data Integrity is essential! Data Trained staff are needed. Plant Design Operating & Maintenance Procedures Data analysis Trained and Competent Staff Model For An MI System System Documentation Actions (Do what you say) (Say what you do) TOP LEVEL SYSTEM DOCUMENTS GENERAL PROCEDURES: (Document the actions) ESTABLISH SYSTEM FILING SYSTEM: PLANNING RBI INSPECT WORK INSTRUCTIONS STANDARDS Documentation/ Records ASSESS THE RESULTS UPDATE/REVISE PLANS: Asset Register Design data MI equipment Inspection data Operational data Deficiency data Inspection Plans Repair information Defect Assessments Inspection due dates The Integrated Plan INSPECTION PLANNING Codes and Standards, RP's, RAGAGEP General "Good House keeping findings Corporate Policy Monitoring info. Local Legislation Inspection Planning activity RBI analysis/ priotitization Corporate Philosophy Data analysis The Inspection Plan i. Inspect ii. Onsite assessment iii. Detailed FfS if needed Anomalies DM's Database Design Construction Operation Inspection 06_Inspection Planning RBI role.vsd Update database Presentation Topics General Introduction The benefits of RBI What RBI is How RBI fits within existing plant systems Implementing RBI Some case studies Typical RBI implementation Define scope of RBI Study Set up RBI team and train Collect Data Identify inventory groups (For consequences) Identify Corrosion circuits Perform Screening Analysis Select high risk equipment items for Detailed Analysis Perform detailed RBI analysis Consequence data-Likelihood data Run risk assessment & Review the results Develop action criteria Discuss Orbit proposed inspection guidelines and run final Translate into an actual inspection plan with schedule Implement plan-perform inspections Update the model with latest inspections Risk Target and Inspection Planning Risk / Damage Factor (DF) Risk / DF Inspection Target Fairly Effective Highly Effective Predicted Risk Increase Time to next inspection Now 1st Turnaround Time 2nd Turnaround Implementation Timeline (Tight Deadlines) Equipment Data Collection Risk Analysis and Prioritization Inspection Program Improvements Weeks Effort 2 4 6 8 Evergreen Level of Effort Critical Success Factors Defined objectives and planning A robust working process to assure efficiency and quality A good knowledge of the RBI theory Trained competent staff A good understanding of the tools to be used. “Evergreening” the process. Types of Analysis A qualitative unit analysis (API 581 for Plant Units) Which unit or platform should be the first based on risk A system screening analysis Which piping systems need to be included A qualitative circuit based analysis A qualitative equipment analysis A semi-quantitative circuit based analysis A semi-quantitative equipment based analysis A fully quantitative equipment based analysis. THE STEPWISE APPROACH Will be of most benefit to a large facility just starting on the journey. This course introduces the semi-quantitative approach but focuses on the quantitative. FfS/ CBA of a few. Quantitative analysis of high risk items Semi-quantitative analysis of the included equipment System Screening - Determine which systems to be included These steps may be formal or informal. Facility Screening - Determine where to start the study Vision for the RBI Services.vsd Qualitative vs Quantitative - COST COMPARISON Proportion of the time spent on activity: Method Est. total hours Activity Accum. Hours "Value" na 40 150 na 100 155 620 40 140 700 100 Hours on Data Coll. Analysis Insp. plan insp plan Initial Analysis 10% 40% 50% 155 Qual. 310 Quant 500 60% Qual. 310 10% Quant 200 15% 10% 30% Second time around: 40% 50% 15% 70% For repeat analyses the quantitative approach is far more efficient. The benefits multiply with time ADVANTAGES OF THE QUANTITATIVE APPROACH Not simply opinion based-easily reproducible Accuracy-Time model The results of qualitative and semi quantitative studies are frozen in time. In reality the risk will change as the equipment ages and as new data is available from inspection. The quantitative method incorporates this. What if studies, e.g.: New campaigns in swing plants If the study had been done qualitatively or semi quantitatively, the effort would be much higher i.e. It is more efficient and powerful to use an analytical approach Presentation Topics General Introduction The benefits of RBI What RBI is How RBI fits within existing plant systems Implementing RBI Some case studies Issue: EXAMPLE STUDY 1 Should we change our feed to a cheaper but more corrosive alternative? What does this mean for our risks and inspection requirements? Example Study 1 Maximum Tolerable Risk Corrosive Conditions Risk Tolerable Risk Unacceptable Risk Standard Operating Conditions Changed Inspection Frequency Inspection Interval Financial Risk after Inspection ($ per year per equipment item) Example Study 1 Financial Risk Exposure $65,000 $55,000 $45,000 $46,846 $35,000 $25,000 $34,793 $26,421 $15,000 0.1% 0.5% Corrosive in the feed 0.8% Example Study 1 Cost of Inspection Cost of Inspection $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 0.1% 0.5% % Corrosive in Process Feed 0.8% Example Study 1 The study gave the facility the information on: The increased risk exposure The increased cost of inspection They compared this with the cost benefits of the cheaper feed and made their decision. Example Study 2 Current Inspection Costs Current Maintenance Costs Total Current Costs RBI Inspection Costs RBI Maintenance Costs RBI Total Total Savings $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Unit 30 -$200,000 -$400,000 Unit 33 Unit 34 Unit 48 Unit 51 Example Study 2 Results for all Units COST BENEFIT ANALYSIS $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Current RBI Savings $0 I ion t c e nsp in Ma ce n a ten ta o T l Example Study 3 Cost effective decision making for an older refinery with a limited inspection history. Using The Financial Risk Values Total Risk vs. Risk Rank Refinery Process Unit, Top 10% Risk Items $1,400,000 $1,200,000 Risk,$/yr $1,000,000 Total Risk = $11,500,000/year $800,000 $600,000 $400,000 $200,000 $0 0 10 20 30 Risk Rank 40 50 Assess The Cost Benefits Of Inspection Total R is k vs . R is k R ank R e fine ry Proce s s Unit, Top 10% R is k Ite ms , Same Ite ms , Each with 1 M ore Ins pe ction $ 1 ,2 0 0 ,0 0 0 $ 1 ,0 0 0 ,0 0 0 Total Risk = $4,100,000/yr, Risk, $/yr $ 8 0 0 ,0 0 0 Savings = $7,400,000/yr $ 6 0 0 ,0 0 0 Cost = $250,000 (mostly piping, approximately $5,000 avg. insp. cost) $ 4 0 0 ,0 0 0 $ 2 0 0 ,0 0 0 $0 0 10 20 30 Ris k Rank 40 50 The Risk of the Lowest 10% Items Total Risk vs. Risk Rank Refinery Process Unit, Bottom 10% Risk Items $1,600 $1,400 Total Risk = $12,000/yr Risk, $/yr $1,200 $1,000 $800 $600 $400 $200 $0 0 10 20 30 Risk Rank 40 50 The Inspection Benefits Here To ta l R is k v s . R is k R ank R e fine ry Proce s s Unit, B otto m 10% R is k Ite ms , S ame Ite ms , Each with 1 M ore Ins pe ction $ 1 ,2 0 0 $ 1 ,0 0 0 Total Risk = $4,300/yr, Risk, $/yr $800 Savings = $7,700/yr $600 Cost = $250,000 (mostly piping, approximately $5,000 avg. insp. cost) $400 $200 $0 0 10 20 30 Ris k R ank 40 50 END