Operational Excellence Management System

Transcription

an overview for chevron leaders and OE practitionersoperational excellencemanagement system

table of contents1Chairman’s message2 Introduction to the OperationalExcellence Management System4Leadership and OE culture6Focus areas and OE expectations12Management System Cycle14Governance16Safeguards17Tenets of OperationLeft, top to bottom: Workers on a storage tank walkway overlooking Tengiz Fieldfacility in western Kazakhstan.A mariner stands watch on the bridge of one of the company’s liquefied naturalgas (LNG) carriers.Worker verifying that a pressure relief device is properly tagged, dated and set tothe correct pressure at the Pascagoula Refinery, Mississippi.Cover: Workers at the Gorgon LNG facility on Barrow Island, Western Australia.

values“Our Chevron Wayvalues guide our actionsand underpin strongOE performance that isfundamental to ourcompany’s success.”— Mike WirthChairman of the Board and CEOWhen we launched our Operational Excellence Management System (OEMS)in 2004, we put in place a comprehensive and prescriptive system to improve ourhealth, environmental and safety performance. The results speak for themselves —we’ve made dramatic improvements in important measures of personal andprocess safety, reliability, and environmental performance.In fact, on many metrics we lead the industry. We shouldbe proud of our progress in living up to our commitment toprotect people and the environment.Our Chevron Way values guide our actions and underpinstrong OE performance that is fundamental to our company’ssuccess. OE is a competitive advantage in hiring andretaining the best workforce, and vital to building trust withcommunities and governments.OEMS has given us a solid foundation, but we know thereremain areas for improvement. Specifically, we need toeliminate high-consequence personal and process safetyevents. This means no fatalities or serious injuries andno fires, spills or explosions that can affect people orcommunities. To achieve this objective, we’ve developedthe first significant update to OEMS. This update retainsmany of the core elements of the original, but is simpler instructure and easier to understand.We all have a role to understand and mitigate risks, and tomaintain and assure safeguards. I encourage you to read andunderstand OEMS and to implement it with the passion andcommitment I know we share.Sincerely,Leaders are accountable for performance and are expectedto apply increased focus on three key areas with the workforce: Understand the high-consequence risks that we and ourcontractors manage every day Clearly identify the safeguards that mitigate these risks Assure that the safeguards are in place and functioningas intended1

operationalexcellencemanagementsystemOperational Excellence (OE) puts into actionour Chevron Way value of protectingpeople and the environment and helps usachieve Chevron’s vision to be theglobal energy company most admiredfor its people, partnership and performance.Operational Excellence systematicallymanages workforce safety and health, processsafety, reliability and integrity, environment,efficiency, security, and stakeholdersin order to meet our OE objectives.2

assuranceleadership andOE culturesafeguardsfocus areasand OEexpectationsmanagementsystem cyclerisOE objectivesThe OE objectives set the priorities: Eliminate fatalities, serious injuriesand illnesses Eliminate high-consequenceprocess safety incidentsand operate with industry-leadingreliability Assess and manage significantenvironmental risks Use energy and resources efficiently Prevent high-consequence securityand cybersecurity incidents Address OE business risks throughstakeholder engagement andissues managementkmanage m entLeadership and OE cultureThrough the Operational ExcellenceManagement System (OEMS), our leadersengage employees and contractors tobuild and sustain our OE culture anddeliver OE performance.Focus areas and OE expectationsFocus areas align with critical OE risksand include: Workforce safety and health Process safety, reliability and integrity Environment Efficiency Security StakeholdersThe OE expectations guide us to design,manage and assure the presence andeffectiveness of safeguards.Management System CycleThrough application of the ManagementSystem Cycle, our leaders make riskbased and data-driven decisions, prioritizeactivities, and direct improvements.3Risk managementOEMS is a risk-based and systematicapproach to identify, assess, prioritize andmanage OE risks.SafeguardsWe establish and sustain safeguardsand assure they are in place andfunctioning in accordance with legaland OE requirements.Safeguards are the hardware and humanactions designed to directly prevent ormitigate an incident or impact. Typicalsafeguards include facility designs,mechanical devices, engineered systems,protective equipment and executionof procedures.AssuranceThrough the execution of assuranceprograms, we have confidence thesafeguards are in place and functioning.

leadershipand OE cultureeffective leadership is a critical success factor for OE —leaders cultivate and drive our OE culturethrough their values, competencies and behaviorsLeaders must:Leaders demonstrate consistent and rigorous applicationof OE to drive performance and meet OE objectives.The actions and visibility of leaders make evident theirgenuine care and concern and the company’s commitmentto place the highest priority on the safety and health ofour workforce, and on the protection of communities, theenvironment and our assets. Build and sustain OE culture Focus on preventing high-consequence incidentsand impacts by understanding and mitigatingrisks and managing and assuring safeguards Define clear OE roles and be accountablefocus on preventinghigh-consequence incidents and impactsby understanding and mitigating risksand maintaining and assuring safeguardsassessriskUnderstand OE risks, includinghazards, potential consequencesand the safeguards toprevent or mitigate themReinforce the hierarchy of controlswhen selecting safeguardsPrioritize resources to mitigaterisks based on the risk profilemanagesafeguardsverifyassuranceExecute processes andstandards with the appropriatelevel of rigor for the risksEstablish and execute a safeguardassurance program for highconsequence incidents and impactsFocus on the design, effectivenessand quality of safeguardsVerify and validate that safeguardsare in place and functioningMaintain, access and analyzesafeguard performance dataMonitor assurance resultsand address gapsEstablish clear accountability forsafeguard performance4

Above: Workers review the Preventing Serious Injuries and Fatalities Field Guide during a field walk in the alkylation unit at the Richmond Refinery, California.build and sustain OE culturedefine clear OE roles and be accountableOur OE culture is foundational to our business successTo build and maintain this culture across the workforce, leadersneed to understand and role-model OE behaviors, including:Leaders have the responsibility to: Provide clear direction on OE roles aligned with We Lead Confirm people are equipped with the technical, functional andOE leadership competencies and skills to execute their OE roles Focusing their organization on the consistent and disciplinedexecution and performance of safeguards Monitor, coach and hold people accountable on their OE roles Instilling and maintaining a sense of vulnerability throughoutthe workforce Provide resources to effectively and efficiently execute the OEMS Encouraging the workforce to learn by seeking, sharing andintegrating knowledge from internal and external sources Direct and monitor compliance with legal requirements Build partnerships, create alignment and accessfunctional expertise Encouraging the reporting of incidents, near misses andpotential noncompliance, and positively respondingto feedbackOperational Excellence Leadership Teams (OELTs) steward theManagement System Cycle for their organization. OELTs confirmthat the full scope of the OEMS is effective. Fostering trust across the company Creating open two-way engagements with the workforceand addressing their concernsEveryone in the workforce contributes to our OE culture andperformance. Everyone has the responsibility to: Building and strengthening workforce OE culture throughthe application of programs appropriate for their organization,for example, behavior-based safety Maintain a sense of vulnerability Understand the hazards and risks of our work Assure safeguards are in place and functioning Follow required practices and procedures Apply the Tenets of Operation Perform Start-Work Checks Exercise Stop-Work Responsibility5

focus areas andOE expectationsthe OEMS establishes expectationsorganized into six focus areas alignedto the OE objectivesand the rigor in its execution. Reporting units are expectedto prioritize the execution of OE processes and actions tomeet expectations, with increased rigor and focus appliedto mitigate high risks.The expectations state the desired outcomes to managethe OE risks. Consistent with company policy and basedon identified risks, leaders are responsible for evaluatingthe applicability, priority and scale of each expectation,focus areasworkforcesafetyand healthprocess safety,reliabilityand common expectations Legal, regulatory and OE compliance Risk management Assurance Competency Learning Human performance Technology Product stewardship Contractor OE management Incident investigation and reporting Emergency managementindividual focus area expectations Managing safe work* Codes and standards* Occupational hygiene Materials and equipment management Fitness for dutyand worker health* Transportation Process safetyinformation Environmentalmanagement Energy efficiency Resource efficiencyand asset optimization Environmentalinformation Security management Stakeholderengagement andissues management Non-operated jointventures (NOJVs) andthird-party aviationand marine activities Property transfer* Lifecycle investmentanalysis* Procedures* Operational readiness Management of change* Well control Well reliability andintegrity Asset integrity Equipment reliability Maintenance* This expectation applies primarily to its focus area, but may also apply to other focus areas.6

common expectationsCommon expectations support the OE objectiveof each focus area.CompetencyIdentify, build and sustain competency standards for roles criticalto OE performance based on risk, consequence and operationalcomplexity. In order to demonstrate role competency, assess,manage and document the qualifications and skills required.Legal, regulatory and OE complianceSystematically understand, manage and comply with allapplicable health, environment and safety laws and regulations,and OE policy and requirements.i.LearningSystematically integrate and support organizational practices toseek, share and apply knowledge to strengthen safeguards andmitigate OE risks.Identify and comply with internal and external requirementsii. Identify and report noncompliance issues to managementin a timely manner and track corrective actions to closureHuman performanceApply human performance principles and concepts to build andmaintain error-tolerant systems that decrease reliance on peopleas safeguards and reduce the risk of error.iii. Enable the workforce to freely and anonymously reportexisting and potential violations of law and company policy,without fear of retribution or any adverse company actionbecause of reporting. Include appropriate and timelyinvestigation to address the reportTechnologyApply technology and digital tools to increase the effectiveness,reliability and efficiency of safeguards, deliver safer designs, andreduce risk.Risk managementSystematically assess risks and identify safeguards. Developa risk profile to prioritize risk reduction and assurance programs,taking into account the expectations of our stakeholders.Evaluate facility-, activity- and product-related risks acrossthe lifecycle of the business, including:Product stewardshipManage and communicate potential health, environment, safetyand integrity hazards, and risks of our products from developmentthrough end use, including raw materials, manufacturing,distribution, storage, use, transportation, recycling and disposal.i. Safety and health risks from physical, chemical andbiological workplace exposuresii. Process safety, reliability and integrity risks of facilities,wells and the subsurfaceContractor OE managementAssess and manage OE risks from:iii. Environmental risks, including current and emergingenvironmental issues and related social and communityhealth issuesi. Contracted activities executed on Chevron premises or withinreporting boundariesii. Contracted activities that deliver facility design and fabricationservices to our businessesiv. Security risks to personnel, assets and the businessv. Social, community, political and reputational risks to thebusiness and potential impacts from our businessIncident investigation and reportingIdentify, report, record and investigate incidents, analyze rootcauses and trends, correct deficiencies, and share and adoptrelevant lessons learned.AssuranceExecute an assurance program prioritized by the risk profile,to confirm that safeguards are in place, functioning, and meetinternal and external requirements. Use the outputs of riskmanagement studies to establish assurance priorities acrossfocus areas. The assurance program includes:Emergency managementPrepare for and respond to incidents and manage crises thatcould affect personnel, the environment, assets, communities andthe business.i. Verifying the OEMS, processes and safeguards throughbusiness unit, functional and corporate assurance programsand auditsii. Analyzing and acting on safeguard performance dataidentified through assurance activitiesiii. Applying learning from assurance analyses to improve riskassessment quality and support risk-based decision making7

workforce safety and healthWe provide a safe and healthy workplace for ouremployees and contractors. Our highest prioritiesare to eliminate fatalities and prevent seriousinjuries and illnesses.Occupational hygieneManage risks associated with workplace exposures to physical,chemical and biological agents that may adversely affectworkforce health.Managing safe workAssess workplace safety and health hazards and managerisks associated with the execution and control of work.Address work activities that utilize safe work practices andprocedures, including:Fitness for duty and worker healthPromote a workforce that is physically, psychologically andcognitively fit to perform essential work tasks and is not impairedby the effects of fatigue, drugs or alcohol. Promote workerhealth through health education and health protection activities.i.Bypassing critical protectionsTransportationManage risk in the use of aviation equipment, marine vessels,motor vehicles, mobile construction equipment and other modesof transportation.ii. Confined space entryiii. Divingiv. Electrical workv. Excavationvi. Hot workvii. Isolation of hazardous energyviii. Lifting and riggingix. Permit to workx. Portable gas detectionxi. Simultaneous operationsxii. Work at heightsxiii. Others as identified by enterpriseor local operationsAbove: Worker checks controls on the Agbami facility, offshore Nigeria.the process approachExpectations should be systematically addressed using a process approach.This enables consistency and standardization across the enterprise.successfully executed by the workforce, and for safeguards tobe effectively applied, the requirements of processes andstandards should be integrated into practical work instructions,training, procedures, tools and other methods.Many expectations are addressed through OE processesand standards. Processes follow the Chevron standardizedfive-component model, which should be written as simplyand clearly as possible. For these expectations to be8

process safety, reliability and integrityWe manage the integrity of operating systemsthrough design principles and engineeringand operating practices to prevent and mitigateprocess safety incidents. We execute reliabilityprograms so that equipment, componentsand systems perform their required functionsacross the full asset lifecycle.Management of changeManage proposed changes to design, equipment, operations,products and organizations prior to implementation. Evaluate OErisks associated with changes, notify and train affected workforceof the change, and update documentation.Well controlManage the prioritized OE risks of drilling and completionsactivities by:Codes and standardsApply company and Chevron-adopted industry codes andstandards for the design, construction, modification, operation,maintenance, decommissioning and restoration of facilities.i. Developing, maintaining and using drilling and completionsstandards and guidelines to plan and execute workii. Verifying that the requirements for WellSafe certificationare in place and effectiveMaterials and equipment managementManage OE risks to Chevron that are related to materials andequipment we procure for use in our facilities.Well reliability and integrityMaintain the integrity and reliability of wells:Process safety informationDevelop, maintain and use process safety information and assetdata, including information on hazards of materials, processtechnology and equipment. Apply the information to enableeffective risk assessments and engineering, operations andmaintenance activities.i. Determine potential well failure mechanisms and actions toprevent or mitigate their occurrenceii. Perform standardized operation, data acquisition, surveillance,condition monitoring, maintenance and well interventionactivitiesiii. Prioritize, plan and schedule well work, including reducing idlewells through return-to-service or plugging and abandonmentas guided by the asset retirement strategyLifecycle investment analysisIn capital investment and expense decisions, assess lifecyclerisks and trade-offs considering safety, the environment, reliability,efficiency, security and our reputation.Asset integrityMaintain the integrity of equipment, structures and protectiondevices for the prevention and mitigation of potential incidents.Perform analysis of failure modes and effects, and completenecessary inspection and testing programs.ProceduresDevelop, maintain and reinforce consistent use of procedures foractivities that support safe and reliable operations, health, and theenvironment across the lifecycle of the business. These include,but are not limited to:ii. Maintenance procedures to safely maintain equipment in orderto enable its continued service in support of reliable operationsEquipment reliabilityIdentify and resolve facility and equipment reliability performancegaps and repetitive or recurring failures to improve reliabilityand optimize lifecycle costs. Use failure analysis to determinecauses of failures. Take action to resolve system-level root causesand appropriately share lessons learned.Operational readinessConduct reviews prior to startup for all new and modifiedfacilities, including:MaintenancePrioritize, plan, schedule and complete necessary maintenance forall structures, equipment and protective devices.i. Operating procedures for all phases of operation, includingstartup, shutdown, routine operations, addressing abnormalconditions and preparation for/return from maintenance i. An Operational Readiness Review to confirm adherenceto standards and the suitability for startupii. A Pre-Startup Safety Review to confirm compliance withapplicable technical codes and standards and that applicableprocess safety systems are in place, equipment is in safecondition and people are competent to execute a safe startup9

environmentWe protect the environment throughresponsible design, develop

focus areas and OE expectations a s s u r a n c e r i s k m a n a g e ment Leadership and OE culture Through the Operational Excellence Management System (OEMS), our leaders engage employees and contractors to build and sustain our OE culture and deliver OE performance. Focus areas and OE expectations