PERD A discussion with the API Subcommittee on Instruments and Control Systems

1. PERD A discussion with the API Subcommittee on Instruments and Control Systems 23 April 2012

2. Your Presenters • Gene Meyer • Dow Chemical, 28 years • Reliability Engineering for the last 12 years. • Hal Thomas (on the phone) • Exida (formerly Air Products) • Process Safety • Original chair of PERD

3. Alignment • AICHE • CCPS, Center for Chemical Process Safety • PERD, Process Equipment Reliability Database • Participants • Members and Users • A subscription-based project with CCPS.

4. Agenda • Introduction • Alignment • Organization • Goal • The solution • Details • Results • Discussion

5. Reliability Situation • Industry-specific reliability data is not available. • Quality company data is scarce. • Performance-based regulations enacted. • CPI and HPI capital intensity forces greater asset management (i.e. higher process reliability)

6. Process Safety Situation • Performance-based regulations enacted. • Lack of quality data reduces confidence & jeopardizes industry credibility with respect to quantitative analysis results • Performance-based processes require quality management systems that are auditable and defensible • Quality Assurance requires data to validate performance assumptions

7. Current Reliability Modeling Situation

8. The Vision Readily available Maintenance and Reliability Data that: • Is generated from equipment like yours, • Is automatically loaded into a database, • Represents industry experience, • Is validated for accuracy, • Is statistically evaluated by documented methods, • Is benchmarked versus your industry • Is available for your use in: • Simulation • Process validation • Process design and troubleshooting • Reliability Growth • Quantitative Risk Assessment

9. The Solution PERD • Process Equipment Reliability Database • A database that works with your computerized maintenance management system to upload equipment performance data, organize, validate, calculate, benchmark and make available for use with clear statistical guidance. • The database that uses company and industry equipment performance data evaluated against industry standards.

10. PERD is: A member-led project developed by CCPS to provide equipment reliability data with the following mission : The PERD Mission Operation of an Equipment Reliability Database, Making Available High Quality, Valid, and Useful Data to the HPI and CPI Enabling Analyses to Support Availability, Reliability, and Equipment Design Improvements, Maintenance Strategies, and Life Cycle Cost Determination

11. PERD Provides: • Practical approach and Consistent work processes for data collection • Sound theoretical foundation based on engineering fundamentals • Efficient software tools for data submission • S/W dedicated for use by participating companies • Quality assurance for data analysis • Identification and analysis of outliers • Defensible and auditable results

12. PERD History • During development of CCPS Chemical Process Quantitative Risk Analysis book, committee concluded a separate guideline book was needed to address data • 1989 - The result was Guidelines for Process Equipment Reliability Data with Data Tables • Following publication, Hal Thomas and Tom Carmody attended an OREDA meeting and concluded data mining was too expensive, but data harvesting if implemented properly was sustainable, hence the PERD initiative was born. • 1998 – Guidelines for Improving Plant Reliability Through Data Collection and Analysis published establishing the basic foundational approach • Today – Work processes established and documented, rolling out 2nd generation PERD software, continuing to develop equipment taxonomies & analyze equipment data

13. Fundamental Concepts • Develop & document equipment boundary diagram • Perform rigorous “Functional Analysis” to determine and document all of the fundamental failure modes that represent complete or degraded failures as well as documenting incipient conditions for an equipment type • Reference paper by Rausand and Oin in their critique of OREDA database

14. Fundamental Concepts Continued • Engineer information systems to • Support data acquisition using a experimental design mentality, facilitating immediate data analysis • Input only facts, i.e. do not require interpretation on part of mechanic or technician • Make use of standard pick lists to extent possible • Create event input forms that allow inference of failure modes by asking the question, ‘What data is it that would allow us to conclude a particular failure mode has occurred.

15. Fundamental Concepts Continued • Leverage existing information systems that are going to exist anyway, improving data quality with no increase in cost • Design equipment design spec data fields to be PERD compatible • Design process demand, inspection and test record data fields to be PERD compatible

16. Fundamental Concepts - The Data Farm

17. An Integrated Approach

18. The Harvest

19. Initiative Focus • Sound theoretical foundation • Practical application to plant and equipment, including software tools • Fundamentally sound engineering information available to companies to “Engineer” their information management systems • Industry database built upon the platform above • Capitalize on opportunities • Company databases adapt to the platform above

20. Fundamental Taxonomy Relationships

21. The same is true for Reliability & simulation

22. Built Upon a Sound Technical Foundation • PERD Has Adopted a Data Tier Structure That: • Eliminates Data Intimidation • Allows more rapid expansion of partial Equipment taxonomies and associated software development • Basic Tier Concept • Tier 1 – Whatever minimal data might exist – Gets people started; generates a useful event record. Pass/fail • Tier 2 – Begins to provide event specifics; population filtering and failure classification • Tier 3 – Top of the “PERD ladder of success”; failure modes

23. Equipment Groups & Systems Expandable

24. Inventory Data Tier Concept • Tier 1 • Location Address (e.g. Plant, tag, etc.) • Equipment Group (e.g. Instrumentation) • Equipment System (e.g. Transmitter)

25. EquipmentType & SubtypeExample

26. Inventory Data Tier Concept • Tier 2 • All tier 1 data plus following data user chooses to enter • Equipment Type (e.g. Differential Pressure) • Equipment Subtype (e.g. Level) • Manufacturer • Model Number • Output Signal or Set Point (As applicable to equipment)

27. Inventory Data Tier Concept • Tier 3 • All tier 1 data • Equipment type • Equipment subtype • Plus additional tier 2 and / or 3 data user chooses to enter • Possible to achieve level of a complete equipment specification

28. Event Data Tier Concept • All Events require • Linkage to tracked equipment • Event date (and time if applicable) • Tier 1 • Data showing a failure has occurred • Tier 2 • Data sufficient to infer whether failure was “Dangerous” or “Safe” • Tier 3 • Data sufficient to infer true failure modes User decides what event data to track!! Event data tracked determines what level of inference is achievable.

29. Relief Valve Proof Test Example

30. Getting Started • Upon Joining as a Full Participant • PERD provides the software & initial help to companies loading the software onto their company server • PERD provides initial help and guidance allowing you to contribute whatever data you have, enabling companies to quickly get involved and begin accruing benefits • Company data contribution means access to aggregated anonymous industry data and a path to continuous improvement

31. Helping Hand Work Process – Getting Started

32. Immediate Benefits • Access to fundamental technical information that documents specific data user needs to: • Filter inventory data for populations of interest • Infer failure modes of interest • Access to work process knowledge needed to achieve company goals • Facilitates moving to data farming (low cost) work process rather than data mining (high cost) activity • Enables maximization of benefits from enterprise systems (eg SAP, Maximo, Matrikon, Meridian, etc.) • Provides pre-engineered solutions that can be implemented cost effectively • Best available info transfer between engineering and programmers

33. On-Going Work Process

34. Long Term Benefits • Data Harvesting per Defined Quality Plans Provide: • Operating company database capable of achieving proven in use data for safety and reliability analysis • Data Contribution to PERD Facilitates • Operation of industry database • Industry benchmarking • Statistical analysis by true experts due to best data available to support their research • Data available for improved reliability and risk analysis • On going continuous improvement via reliability growth

35. Why Join PERD? PERD enables user companies to leverage existing IT and MI systems to collect and submit data resulting in: • Improved Reliability • Industry benchmarking • Identification of “low hanging fruit” for immediate impact • Minimization of unforeseen losses • Increased Effectiveness for • Information SystemsTechnology • Reliability & Quantitative Risk Assessments • Regulatory Compliance For a small financial investment and minimal data.

36. You would join… Full Participants Subscribers & Volunteers Exida Rosemount Savannah River Site Sis-Tech TMC • Air Products • Chevron • DNV • Dow Chemical • DuPont • FM Global

37. Getting Started. • Join as a Full Participant • Benefits of Full Participant Status: • PERD provides the software & initial help to companies loading the software onto their company server • PERD provides initial help and guidance allowing you to contribute whatever data you have, enabling companies to quickly get involved and begin accruing benefits • Company data contribution means access to aggregated anonymous industry data and a path to continuous improvement • Networking with industry experts involved with the PERD project.

38. In Summary • PERD provides you a roadmap to improved performance whereby you can • Improve Information Systems Effectiveness • Create Value • Minimize unforeseen losses • Improve Regulatory Compliance Effectiveness Enroll Now!!

39. For More Information Contact • Dave Belonger – CCPS PERD Staff Consultant • 609-654-4914 • dbelonger@verizon.net • Gene Meyer – Chairperson • Dow Chemical • (989) 638-4064 • grmeyer@dow.com • Hal Thomas – Technical Consultant • exida • 610-481-9681 • thomashw@exida.com