Case Study: ScottishPower’s Strategy for Asset Management and Process Safety

by Sandra DiMatteo, Bentley Systems

Energy company ScottishPower, a division of Iberdrola, was the first power generator and the second company in the world to be certified on BSI Publicly Available Specification 55 (PAS 55:2008), which benchmarks best practices in asset management.

AssetWise Performance Management and the Bentley Asset Performance Management (APM) Methodology and the Amor Group Process Safety Methodology and KPI (key performance indicators) Dashboard played key roles in ScottishPower’s achievement.

The Need for Change, Challenges

A series of industrial incidents including one at ScottishPower Longannet Generating Station, coupled with the publication of U.K. standards HSE RR509-Plant Ageing Report, integrity guidelines HSE HSG254 and asset management standard PAS 55 2008, highlighted ScottishPower’s vulnerability to a major incident and the need to make asset management and process safety a priority. In particular, the Baker Panel report into the BP Texas City refinery fire motivated ScottishPower to carry out a self-audit that assessed whether a similar catastrophic incident could happen within its operations, and if so, how well risks could be managed.

Pathway to a High-reliability Organization

ScottishPower developed sustainable processes to address the British Government’s Health and Safety Executive HSE Plant Ageing report of 2006 (RR509) and to attain PAS 55 accreditation.

It was time to change a reactive culture in older coal-fired plants to a proactive culture while addressing knowledge lost because of employee attrition and the lack of technology to support the approved business model. A road map established and implemented the vision for operational transformation. An aligned information technology (IT) strategy and system lies at the heart of ScottishPower’s success with the program. Significant groundwork was performed during 2006-2008 to consolidate the business on a small set of best-of-breed applications, including AssetWise Performance Management integrated with IBM Maximo.

AssetWise provided a robust and automated source of data required to derive leading KPIs each day. And rather than having many KPI reporting systems, ScottishPower adopted a unified approach that has eliminated any conflict over data collection.

Early in the program, a partnership was formed with the Amor Group to develop an integrated data management system to meet integrity guidelines HSE HSG254.

The system aggregates performance data for KPIs from core operational business applications, including AssetWise Performance Management to manage the business and asset integrity.

The Operational and Maintenance Excellence Strategy

The scope of the initial implementation included two coal-fired power stations in Scotland and three combined-cycle gas turbine power stations in England.

To enable the organization to ingrain the process of asset management and process safety across multiple plants, ScottishPower leveraged the Bentley APM methodology to guide the implementation through business, organizational and technology alignment to PAS 55.

The complete Bentley APM solution, supported by maintenance task analysis failure modes and effects analyses, along with previously completed world-class reliability-centered maintenance and a new internally developed peer-to-peer review practice enabled by the technology AssetWise Performance Management, provided a cohesive and integrated approach to develop, implement and manage a living program.

Risk Management

ScottishPower took a simple view that incidents and near misses were the single source of lagging indicators.

It implemented a new incident management process to capture this data and drive consistent investigation of causes.

Incidents were classified as major, significant or minor (based on API 754 Process safety performance indicators for the refining and petrochemical industries) related to the underlying 42 risk control systems.

The Smart Use of IT and Mobile Technology

The smart use of IT and handheld data collectors that run AssetWise Performance Management means data management systems are integrated into process plant and other day-to-day operational systems.

This enables the company to drill down from each headline KPI to reveal the underlying causes, trends and transactions in the Bentley APM methodology. With these core systems, ScottishPower can assess performance and drive progress toward targets.

The information is available to everyone in the company at any time and enables them to identify and act upon problems within their system before it affects business or safety.

This information is not stand-alone; it is part of a complete system of plant, people and process residing within a strong leadership framework where senior management understands process safety and asset management that directly links to business performance.

Results

In only two years, ScottishPower established the asset management and process safety framework that has led to improved plant reliability.

As a result, it has improved performance and transparency of key processes and has experienced fewer unplanned outages and breakdowns with significant cost savings:

“- 36 percent reduction in operations and maintenance costs;
“- 22 percent increase in plant availability;
“- 52 percent reduction in plant forced outage rates; and
“- 10 percent reduction in insurance premiums.

As a high-reliability organization, ScottishPower produces its product consistently over long and sustained periods.

The proactive culture is one of continual vigilance and lacks complacency.

Employees act strongly to weak signals and set their threshold for intervening very low, given the understanding of the condition of their assets.

Senior management has visibility of core operational processes. This has increased confidence and assurance from board to plant level.

The result has been improved cooperation among leadership, work force and regulatory bodies and the drive to deliver a high-reliability organization.


Project Summary

Organization: ScottishPower
Solution: Power Generation
Location: Scotland, U.K.

Project Objective

“- Address the HSE Plant Ageing report RR509 and attain PAS 55 accreditation.

“- Avoid incidents and disaster by setting a high standard for asset management and process safety.

Products Used: AssetWise Performance Management

Fast Facts

“- AssetWise Performance Management was chosen after a generating station experienced catastrophic failure that resulted in plant shutdown.

“- ScottishPower is the second company in the world to be certified on BSI Publicly Available Specification 55 (PAS 55:2008).

“- AssetWise enables ScottishPower to drill drown from each KPI to reveal underlying cases and trends.

ROI

“- 36 percent reduction in operations and maintenance costs;
“- 22 percent increase in plant availability;
“- 10 percent reduction in insurance premiums; and
“- 52 percent reduction in plant forced outage rates.

Author

Sandra DiMatteo is director of applications advantage, asset management and operations at Bentley Systems, where she leads the marketing strategy and positioning for Bentley’s asset management and operations products. She founded and is on the board of the Society of Maintenance and Reliability Professionals Ontario Canada Chapter and has an Honours Bachelor of Commerce from McMaster University in Hamilton, Ontario.

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