Contributed to HydroCarbon Asia, Published March/April , 2003 pp 38-47

Asset Integrity Management Involving Integrated RBI and RCM

Dr. Jens P. Tronskar,

Director of Operation for Asset Integrity Management Services,
DNV Asia and Pacific

Abstract

New risk based methodologies have been developed over the past 10 years that may
give improved risk control and enhance profitability through asset optimization.

The methods allow prediction of the effect of changes to inspection, maintenance and
operation on the plant risk profile and reliability. Risk Based Inspection (RBI),
Reliability Centred Maintenance, Reliability Availability and Maintainability (RAM)
offer quantitative predictions of the plants risk, reliability and availability.

The question is how do we integrate these individual tools and methods to make a
sustainable system of best practices for asset optimization? To justify introduction of the
new methodologies this paper presents recent historic data on accidents in hydro carbon
plants and the root causes of large property damage losses. The root causes can often be
traced back to poorly implemented process safety management, lack of risk
assessments, poor mechanical integrity systems and insufficient maintenance and
inspection of business and safety critical equipment.

The paper introduces the concept of streamlined RCM and seamlessly integrated RBI
and RCM. Requirements to software for successful asset integrity management,
implementation of integrated RBI and RCM and needs for interfacing with the
enterprise resource planning (ERP) systems such as SAP are discussed.

Finally examples are presented from DNV's world-wide experience of more than 220
RBI and combined RBI/RCM projects for the refinery and petrochemical industry.

1. INTRODUCTION

For any Asset Management improvement strategy it is imperative to gain acceptance

and acknowledgement of the fact that to improve the overall plant profitability,
maintenance, inspection and reliability must play a key role together with operations to
understand the factors that affect asset performance and availability. Short term

Table 1: 1970 to 1999 large property damage losses world-wide in excess of US

$150,000,000 [1].

1
 Date Location Plant Type Event Type PD Loss $MM
17/08/1999 Turkey Refinery Earthquake 200
27/09/1998 Mississippi Refinery Hurricane 200
25/09/1998 Australia Gas Plant Explosion 200
25/12/1997 Malaysia Gas Plant Explosion 282
13/12/1994 Iowa Chemical Explosion 224
27/05/1994 Ohio Chemical Explosion 200
09/11/1992 France Refinery VCE 262
16/10/1992 Japan Refinery Explosion 187
23/10/1989 Texas Petrochemical VCE 839
18/09/1989 Virgin Islands Refinery Hurricane 207
05/05/1988 Louisiana Refinery VCE 368
04/05/1988 Nevada Chemical Explosion 383
14/11/1987 Texas Petrochemical VCE 285
23/07/1984 Illinois Refinery VCE 268
04/03/1977 Qatar Gas Plant VCE 174
01/06/1974 England Petrochemical VCE 164

improvements in profitability can lead to large property damage losses if the plant
performance is increased without understanding the effect of changes to operation,
maintenance and inspection practices on the risk of individual asset (equipment) and
systems. New methodologies for prediction of the effect of inspection and maintenance
on the plant risk profile are available. Risk Based Inspection (RBI), Reliability Centred
Maintenance, Reliability availability and maintainability (RAM) analyses are predictive
methods that offer quantitative assessment of the plants risk, reliability and availability.

2. SERVICE EXPERIENCE

Statistics from the hydrocarbon industry show that large property damage losses are
increasing. James Coco [1] recently presented world-wide statistics for the hydocarbon
industry upstream and down stream. Table 1 shows a list of the largest financial losses
in the process industry during the period 1970 to 1999.

Based on the statistics it is found that refineries accounted for almost half of the largest
losses world-wide. Figure 1 shows that piping and heaters account for the largest
average

Figure 1: Average losses related to various refinery equipment [1].

2
 400
350
300
250
Number
of losses 200
150
100
50
0

0
99

99

00
-1

-1

-2
85

90

95
19

19

19
Figure 2: 5 year interval comparison of number of refinery losses world-
wide [1].

losses in refineries. Leaks causing vapour cloud explosions (VCE) are the worst case
loss scenarios and as seen from Table 1, 44% of the major losses in petrochemical,
refineries and gas plants were caused by VCEs and 38% by explosions. Hence, the
integrity of pressure containing equipment is of major concern and the trend of
increasing number of losses in the hydrocarbon industry overall and among the
refineries in particular is very worrying, additionally so as plants gets older. Figure 2
shows a 5 year comparison pertaining to number of losses in refineries according to
James Coco [1].

The root causes of the accidents leading to the large property damage for refineries, gas
plants, petrochemical plants and offshore oil and gas production were attributed to:

• Inadequate PHAs/QRAs/Risk Assessments

• Use of wrong or poorly designed equipment
• Inadequate indication of process conditions
• Inadequate management of change process
• Lack of strong mechanical integrity program
• Lack of enforcement of Lockout/Tagout procedures
• Warnings from near misses, other accidents went unheeded

3
Maximising
• Plant efficiency / reliability levels
• Product generation/throughput

and Maintaining
• contractual nominations
• safety requirements

whilst Minimising
• manning costs
• materials costs
• maintenance work load
• transportation and support
• downtime affecting revenue/operating costs
Figure 3: The asset integrity and plant optimisation challenge.

All the above causes are related to the elements of process safety management,
mechanical integrity and change management. Some of the failures have also been
associated with improper design of the equipment for particular process conditions such
as wrong material selection. Furthermore, the importance of including the actual
condition and operation of the plant equipment in risk assessments is becoming more
widely recognised with the focus on Risk Management and implementation of Risk
Based Inspection. Increasing number of plants have implemented Risk Based Inspection
although it is important to recognise that the majority, however, have been using
qualitative methods that do not provide information about the actual risk level and how
changes to the inspection and maintenance practises affect the individual equipment risk
and the overall risk level.

It can be speculated why there is a trend towards increasing number of large property
losses in the hydrocarbon industry and in refining in particular, as seen from Figure 2.

Plants inevitably gets older and risk increases due to ongoing damage such as corrosion,
fatigue, creep etc.. However, in times of increasing competition and low margins plant
owners are trying to "sweat" their assets whilst lowering their operating expenses,
which means that maintenance and inspection activities may suffer and are no longer
adequate to maintain the required safety level. The challenge to the plant owners is
illustrated schematically in Figure 3.

To improve overall plant profitability, Maintenance, Inspection, and Reliability must

play a key role together with Operations and the factors that affect asset (equipment)
performance and availability must be thoroughly understood.

By assessing past performance, identifying the risk among individual equipment and
identifying opportunity areas for improvement, plants can move towards a risk based
management philosophy reflecting the latest thinking in:
• Reliability Centered Maintenance
• Risk Based Inspection
• Life Cycle Analysis
• Unit Performance Analysis
• Work Order Automation

4
 It is of utmost importance that activities arising out of the Asset Management Strategy
support the PSM program with regard to Mechanical Integrity, Process Safety
Information, Management of Change, and Training – among others. To accomplish this,
the asset register, SAP, RBI and RCM software, corrosion management database and
reliability software systems will ultimately require integration so that changes in one
equipment item is recognized in the plant-wide system.

Reliability software systems for quantitative assessments of equipment criticality would

also normally include methods and tools for reliability, availability and maintainability
(RAM1) simulation to identify critical units, systems, functions, equipment and
processes and to support the RCM analysis.

Procedures for handling situations where code requirements are no longer satisfied,
need to be implemented as part of the Mechanical Integrity procedures. These situations
must be handled by having an appropriate system for Fitness-For-Service and remaining
life assessment in place to ensure safe operation even if equipment temporary or
permanently no longer meets the code requirements. Appropriate references are API RP
579 "Fitness-For-Service" [2] and BS 7910 : 1999 : "Guide on methods for assessing
the acceptability of flaws in metallic structures" [3].

3. NEW REGULATIONS PERTAINING TO HSE, PSM AND MI

Changes to HSE regulations have been implemented or will be implemented within a

few years in many countries in Asia, including Indonesia and Malaysia. Regulations are
changing from being prescriptive to becoming functionality or risk based. In Australia,
following the tragic Esso Longford Gasplant accident a new regulation by the Victorian
Government regarding Asset Integrity has been enforced [4]. This is the Asset Integrity
Management under the Occupational Health and Safety (Major Hazard Facilities)
Regulations MHD GN – 18 Rev D February 2002. The core concepts of this regulation
are as follows:
• Asset Integrity programmes provide the mechanisms by which the integrity of
equipment and control systems is ensured. Managing the integrity of an asset involves a
broad understanding of the “lifespan” of the asset, its current “age” and the rate at which
is it “aging”.
• The integrity of equipment begins with, and subsequently relies upon, an accurate,
comprehensive, written definition of design, operating and maintenance parameters.
• The Asset Integrity management programme should be subject to continual
improvement via a series of relevant feedback mechanisms. This means that systems
managing fault-reporting, the availability and deployment of suitable personnel and
equipment and the scheduling and ranking of routine maintenance activities should be
audited to ensure they are implemented as intended.

1
DNV provides RAM software and consulting in a world-wide co-operation with Jardine.

5
 10% of equipment Items
Contribute 93% of Risk

Figure 4. Pareto curve from RBI analyses of Chemical plant 900 equipment and
piping items.

• The tools that may be utilised in the maintenance and measurement of asset integrity
include reliability engineering, reliability centered maintenance, determination of
critical operating parameters / safe operating windows and inspection (incl. non-
destructive testing and risk-based inspection).

It is apparent from the above Victorian Government regulation for Asset Integrity
Assurance that tools such as Reliability Centred Maintenance and Risk Based
Inspection play a prominent role in the maintenance and monitoring of the effectiveness
of asset integrity system.

4. DNV'S RISK BASED INSPECTION APPROACH

A methodology for RISK BASED INSPECTION (RBI) has been developed by the
American Petroleum Institute’s (API) Committee on Refinery Equipment and Det
Norske Veritas (DNV). This methodology has been documented in the “Base Resource
Document for Risk Based Inspection” [5] API publication 581 and the API
recommended Practise RP 580 on application of RBI. DNV has developed RBI
software for API and DNV's own ORBIT Onshore for refineries and petrochemical
plants based on API 581. The software calculates the risk for each individual equipment
and piping item using the expression:

Risk = ∑ Pof ⋅ Consequenc e

equiment
items

where Pof is the probaility of failure

DNV has recently issued a Recommended Practice DNV-RP-G101: "Risk Based
Inspection of Offshore Topside Static Mechanical Equipment" [6]. This recommended
practice describes the approach to Risk Based Inspection of Offshore topsides piping
and pressure vessels. The methodology is essentially similar to the API 581

6
methodology but differs due to the different consequence analyses (escalation assumed)
and that it does not use generic failure frequencies (GFF) for the starting point for the
probability of failure calculations but is using limit state functions describing the
various damage mechanisms and a calibrated probabilistic analyses model.

RBI combines knowledge of damage mechanisms and damage progression rates,

inspection effectiveness with load and resistance models to determine the probability of
failure causing leaks with the consequence of failure to obtain the risk. Conventional
quantitative risk assessment methodologies are used to assess the consequences of these
leaks. A quantified ranking of process equipment and piping in terms of personnel and
environmental risk, loss of production and damage cost, focuses the inspection towards
high risk components and potential/active inspectable damage mechanisms for an
optimal utilization of inspection resources on key assets. In any plant a relatively large
percentage of risk is usually associated with a small percentage of the equipment. A
typical example of the cumulative risk for a chemical plant with 900 equipment items
derived by RBI analyses is shown in Figure 4. It is seen that a small portion of the
equipment i.e. 10% of the equipment items contribute 93% of the risk of operation.

5. DNV'S APPROACH TO STREAMLINED RCM AND RCAM

Streamlined RCM processes essentially the same as applied by DNV has been
implemented successfully by Shell and ExxonMobil and is still the method of choice for
most refining and process facilities.

It is pertinent to ask how does streamlined RCM mirror the conventional RCM process
and how does it differ?

A comparison between the classical, Aladon Ltd., RCM process to the streamlined
RCM process with regards to the seven questions asked in performing classical RCM is
shown in Table 2.

The first question, when using the classical RCM approach, would define the function
of each physical asset. This would lengthen the analysis time by defining what each
pump, motor, exchanger, control loop, etc. would do to support the process. The
streamlined method would define the function of a system of components. An example
would be a feed preparation function where several pumps, filters, heat exchangers, and
control loops would all be analyzed as performing the one function of "Deliver
preheated, filtered feed to furnace section at a rate of 2300 to 2500 bpd and a
temperature and pressure of 260 deg F, 125 psig". The functional failure would in most
cases simply be "Fails to deliver preheated, filtered feed…".

Question number two in the classical method refers to how the functional failure of each
asset is defined. This is sometimes referred to as failure states.

7
Table 2: Comparison of the seven questions asked in classical and streamlined RCM.
The seven questions asked in performing classical The comparable questions asked in performing
RCM streamlined RCM
1. What are the functions and the associated 1. What is the function of the system of
performance standards of the asset in its present components being analyzed and the
operating context? corresponding functional failures?

2. In what ways does the asset fail to fulfill its 2. For each component integral in performing the
functions? function, what are the failure modes?

3. What causes each functional failure? 3. What are the functional failure effects?

4. What happens when each functional failure 4. Is the functional failure effect critical or non-
occurs? critical? (Specific criteria are developed to
determine criticality)

5. In what way does each failure matter? 5. If failure effect is critical, what are the
dominant, failure causes for each failure mode?

6. What can be done to predict or prevent each 6. For each dominant failure cause, is there a
failure? recommended task or action to a) mitigate the
effects of failure
b) extend the time between failures
c) detect a hidden failure

7. What if a suitable predictive or preventive task 7. If failure effect is non-critical, are there specific
cannot be found? reasons for performing cost effective
maintenance?

In the streamlined process, the idea is similar but failure states are referred to as failure
modes and are only applied to the functional failure at the system level.

Question three is used in classical RCM to determine failure causes. This provides an
in-depth analysis of each identified cause of failure. Streamlined RCM uses the failure
modes from question two to determine the failure effects of each component's failure
mode. The big difference here is the large number of failure causes versus the relatively
small number of failure modes. Example: for a process pump, the failure causes in
classical RCM would normally include; corrosion, impeller wear, seal leakage, lack of
lubrication, bearing seizure, fouling, etc. the failure modes used in streamlined RCM are
simply 'fails to run, fails to start, externally leaks'.

Question four refers to the failure effects in the classical process that streamlined
already covered in question three. Question four in the streamlined process determines
the criticality of the failure effects. Example: failure infers plant shutdown, or unit
shutdown. Each failure effect from question three is compared against a predetermined
criteria of criticality. This can be a quantified statement, a qualifying sentence or a
weighted matrix; whichever the client prefers.

Question five on the classical side is the critical or non-critical determination where the
consequences of failure are defined. The streamlined process asks in question five,
'what are the dominant failure causes?' The advantage of asking the question here is

8
that it greatly reduces the time spent determining failure effects and also leads directly
into the task selection step in question six.

Question number six is similar for both classical and streamlined. Classical RCM tends
to limit the tasks selected to preventive and predictive tasks where streamlined RCM
uses all possible task categories in determining the recommended actions. This includes
design modifications, procedure changes and operational strategy considerations.

The seventh question finishes the task selection process for both classical and
streamlined RCM. The classical RCM asks if there are any tasks beyond predictive and
preventive that should be considered. The streamlined process determines whether
there are cost effective tasks that should be performed for components that were
determined to be non-critical. The bottom line in comparing the two processes is that
the same task recommendations, based on failure modes and failure effects, are
developed, ready to be implemented. Experience shows that the streamlined method
accomplishes this in only 10% to 20% of the time.

Apart from the differences between the DNV streamlined RCM approach and classical
RCM there is another very important difference. Whereas conventional RCM is
normally only focused on planning and scheduling of maintenance activities, the DNV
approach also involves the other parts of Mechanical Integrity. These are the elements
of the Reliability Centred Asset Management (RCAM) process. The DNV RCAM
process recognises that successful mechanical integrity relies on many factors related to
management, design operation and human resources that are not normally considered
for classical RCM analyses. Hence, RCAM therefore involves a number of steps to
assess the effectiveness of systems and processes already in place prior to implementing
the new methodology.

Following the assessment of the effectiveness of existing systems and processes, the
actual maintenance optimization process is normally conducted as a pilot study of
selected units at the plant. An overview of the critical steps of the streamlined RCM of
the RCAM process, is presented by the bullet points below. One key feature of the
process is the combined RCM and RBI screening analysis.

RCM - Process Overview

3. Project Development
4. System Screening and Selection (Common process for RCM and RBI)
5. Risk Criteria Parameters (Agree on risk criteria with client)
6. Functions and Functional Components
7. Component Types and Failure Modes
8. Failure Consequences
9. Failure Cause Determination
10. Task Selection
11. Maintenance Optimization and task bundling with inspection activities
12. Implementation

9
 S ta g e IV
S ta g e III B e s t o f th e B e s t
S ta g e II In n o v a to r
S ta g e I C o n tro lle r
F ire fig h te r

Entirely reactive More reactive than More proactive than Work is performed
Little structure proactive reactive according to plan
No formal planning and Functional orientation Balance between Multi-functional
scheduling Daily planning and functional orientation & integration and
Very few performance scheduling customer self-managed teams
measures Performance measures Weekly planning & Longer term focus with
No budgets typically against budget scheduling high schedule
Limited PM Cost reduction Maintenance compliance
No formal Materials programs effectiveness measures Customer satisfaction
Management Function PM programs in place Unit Cost Management and total cost focus
Few systems Some storeroom control High compliance to PM Total productive
Isolated systems and programs maintenance orientation
cost reporting Materials management Ongoing assessment of
focus PM program
Computerized work order effectiveness
management system Total supply chain
Focus
On-line, integrated
system

Figure 5: Four stages of development of maintenance strategies.

Table 3: Failure modes considered in streamlined RCM/RCAM and RBI

RCM/RCAM RBI

• Failure to Operate • Failure to Contain

• Failure to Control • Failure to Support

• Failure to Detect

• Failure to Contain

6. SEAMLESS RBI AND RCM INTEGRATION

It is becoming increasingly recognized that moving to a proactive posture in

maintenance strategies offers the greatest advantage. Figure 5 represents the four stages
of maintenance strategy development and the characteristics of each.

Probably the most important requirements for a successful Business Driven Asset
Management strategy is that the philosophy is endorsed at senior plant management
level, accepted at the line function and throughout the entire work force including
trades, operators, inspection, maintenance, reliability and process.

The first task of developing a new asset integrity management strategy is to

10
 1. Understand the demands that will be placed on assets as a function of production
demands.

Table 4: Data from the industry reflecting the situation as regards to resource
utilization on different maintenance modes among plants in US
Type of maintenance 1992(CSI) 1998(UTK)
Reactive 50% >50%
Preventative 25% 25-30%
Predictive 15% <25%
Proactive 10%

2. The second task is to identify what percentage of the population of each asset
category are high-risk items by performing a risk assessment followed by failure
modes and effects analysis, and then employing the appropriate measures to
reduce the risk.

Both RCM and RBI use the concept of risk; in an integrated RBI and streamlined RCM
analysis, RBI is being utilized in a fully quantitative fashion due to the fact that risk is a
function of consequence from the standpoint of breach of process containment. In
addition, the task recommendations are different for fixed equipment and piping,
instrumentation and rotating equipment. This is due to the different failure modes that
may occur for the static and dynamic equipment as illustrated in Table 3. The process of
integrated RCM and RBI analyses developed by DNV is illustrated schematically in
Figure 6. One pre-requisite for the implementation of the integrated RCM and RBI
methodologies as seen from Figures 7 and 8 is that the analyses share the same
equipment database and asset-register and that the analyses and scheduling tools can
interface with the work order generating software and the enterprise resource (ERP)
planning system.

7. JUSTIFICATION FOR RCM AND RBI IN THE ASSET MANAGEMENT

STRATEGY

DNV has conducted a large number of RBI and RCM studies which have shown Return
on Investment of such strategies to range anywhere from 4:1 to 50:1. Historically,
maintenance and inspection strategies have been reactive and incident-driven in nature.
The advent of modeling tools and greater acceptance that proactive-preventive
approaches offer cost advantages, are justifying industry’s embrace of these
philosophies.

Table 4 reflects data from industry as compiled by Computational Systems Inc. (CSI),
and the University of Tennessee Knoxville (UTK) for plants in US. The trend indicates
an increasing proportion of maintenance resources are spent in a reactive mode, despite
that new predictive tools such as RCM and RBI have become available to the industry
in the period from 1992 to 1998. One explanation may be that plants in US have been

11
gradually reducing the number of maintenance and inspection personnel and out-
sourcing of maintenance and inspection tasks has become more common.

The above figures agree fairly well with a recent survey of the process industry in
general performed by The Society for Maintenance and Reliability Professionals in US
shown in Figure 9.

12
Start
System Function in Malfunction Economic
Installation Consequence

Equipment Sub-function •Failure to Start

•Failure to Operate
in System •Failure to Perform
•Failure to Contain
Product Operating
Service Malfunction
Conditions
Code Safety
Consequence
Material Environmental
Coating
Lining
Consequence
Failure Probability

RISK

Figure 6: Schematic representation showing the division into systems, sub-systems and operating conditions to define the type of malfunction,
corresponding failure probability and economic, safety and environmental consequence in the seamlessly integrated DNV RCM and
RBI methodologies.

13
 Strategic Process
Increasing revenue
Optimising cost RBI RCM
Lowering risk
Integrated Methodology
Asset Performance
Equipment
Risk factors
Likelihood of
Database
Consequence of

} Asset Management
Inspection Strategy
Maintenance Strategy
Operating Strategy
Shared equipment (mechanical integrity) database

Figure 7: Integrated RCM and RBI

Business Asset Functional Asset

Objectives Performance Assets Management

ASSET
REGISTER

RCM RBI
OVERLAP
ANALYSIS ANALYSIS

COMBINED REQUIREMENTS REGISTER:

Item Failure Cause Effect Ranking Required task Frequency Other
mode:

Update Update

Operation, Inspection and Maintenance Plans

Figure 8: Relation between Business Objectives, Asset Assurance Processes (RBI and
RCM), Asset Register, Functional Assets and Asset Performance in an
integrated RBI and RCM Asset Management methodology.

14
 Maintenance resources spent in different modes
- plants in general

12% 2%

Reactive
Preventative
Predictive
31% 55% Proactive (other)

Figure 9: Data from survey conducted by The Society for Maintenance and Reliability
Professionals showing use of maintenance resources on different
maintenance strategies.

Maintenance resources spent in different modes

- Best practise plants

7% 8%

Reactive
32%
Preventative
Predictive
Proactive (other)
53%

Figure 10: Distribution of maintenance resources in Best Practice or First Quartile

Plants.

If the data shown in Figure 9 are compared to similar data obtained from a survey
among the US Best Practice or First Quartile Plants, it is seen that there is a clear trend
for these plants to move heavily into predictive maintenance and inspection strategies as
shown in Figure 10. The predictive approaches offer cost benefit advantages for the
plants and it is expected that more plants in US and world-wide will follow their
example and embrace the new philosophies involving increased use of quantitative
predictive methods in the near future.

7. ASSET INTEGRITY MANAGEMENT SOFTWARE

DNV provides tools, work processes and training of staff and management for
implementation of RBI and RCM/RCAM. The DNV tools such as ORBIT RBI

15
Figure 11: DNV ORBIT RCM Reliability Centred Maintenance software tool.

and ORBIT RCM software tools, see Figure 11 can readily be interfaced with Asset
Integrity Management Software and the ERP system.

However, based on DNV's experience a successful implementation of predictive

methods for asset integrity management requires:

• Asset items are accurately identified and mechanical data correctly recorded

• Essential factors correctly evaluated

• Measurements and histories are carefully recorded

• Analyses are properly carried out and recorded

Methodologies and concepts also depend on the availability of :

• Expertise to underpin the methodology

• Computer system:
¾ to capture the massive amount of data
¾ to store and to track the data / documents
¾ to report and to analyse the data

16
 1

Primalux
Asset Integrity Management System
(AIMS)

to support

Plant Safety and Integrity

Figure 12: Primalux Asset Integrity Management System.

• to follow-up on the action taken

• to provide decision tools

In Asia and Pacific DNV is co-operating with Primalux an Asset Integrity Management
Software company based in Singapore and Taiwan to develop and market an advanced
integrated Asset Integrity Management Software for the Asian market. The Primalux
system is used in the following to illustrate how asset integrity management software
systems may interface with the DNV RCM and RBI software and ERP systems like
SAP and its maintenance management module. The software is called Primalux, see
Figure 12. This Oracle based software has a bi-lingual human-machine interface (HMI).
The software can be set up with interface in either Chinese, Korean, Japanese or Bahasa
Indonesia as one language and English as the second language.

The structure and modules of Primalux AIMS software are illustrated schematically in
Figure 16. The modules and how the software interfaces with the Enterprise Resource

17
 Primalux Enterprise Asset Management System
as a ‘snap-on’ to the rigid ERP

Advanced
External AutoCad Specialized Data
Process PDA HMI EDMS
Systems Integration Packages Logger
System

Data Exchange
Asset Conditioning Drawing/
/ Data Loading Register Inspection Monitoring Document
Utilities

Primalux Asset Integrity System Maintenance Parts

Management Management

Primalux-CMMS or ERP System

Finance Sales & Human Other Management Procurement Materials /

Management Distribution Resources Modules Reports Warehouse

ERP

Figure 13: Modules in Primalux AIMS and interface to ERP i.e. SAP.

Open Plant Information System

as a ‘snap-on’ to the rigid ERP

Drawing /
External Document
Specialist packages
packages

Corporate
Corporate RCM, AutoCad

FinanceDatabase
Database Adv. RBI
Finance GPS
Primalux facility
management
EERRPPsystem
system
HMI
Shop-floor
Shop-floor
Plant
Process
Process
Information
Control
Control
System
System

-
6
-

Figure 14: How Primalux works as a "snap on" system to the ERP providing
information exchange with the DNV RCM and RBI tools for Risk Based
Management of Inspection and Maintenance activities.

Planning software program (ERP) such as SAP and its maintenance module, is shown in
Figures 16, 17 and 18.

18
 Inspection and Maintenance Cost for
five Refinery Units, Before and After RBI

1,400,000
1,200,000
Inspection & Maintenance
1,000,000 spendings before RBI
US $

800,000
600,000 Inspection & Maintenance
400,000 spendings based on RBI
analysis
200,000
-
Unit Unit Unit Unit Unit
33 51 34 30 48

Figure 15: Inspection and maintenance cost before and after RBI implementation for
five refinery units.

Figure 14 shows how Primalux works as a "snap on" system to the ERP providing
information exchange with the DNV RCM and RBI tools.

8. CASE STUDIES RBI

8.1 Cost benefits of RBI for Refinery

DNV was contracted to perform RBI of a refinery in US initially covering the pressure
vessels and piping in five units such as CDU, SRU, FCCU etc. exposed to internal and
external localized and general corrosion. The total number of vessels was 657 and there
were 919 piping items. The scope of the RBI project included:

• Identify damage mechanisms

• Risk ranking of items

• Develop detailed inspection plans

• Compare cost of existing inspection and maintenance programmes

with those based on RBI Recommendations for inspection
methods / effectiveness

The overall cost savings reported by the client as shown in Figure 15, was US $ 1.6
million per year and the estimated risk reduction was 72% in average for the initial five
units.

Since the first analyses DNV has now completed analyses of all 30 plant units
consisting of 3011 pressure vessels and 8678 piping segments. The projected savings

19
from RBI implementation according to the client approach US $ 11.8 mill and potential
reductions in risk of leaks to the atmosphere due to material degradation averaged 82%

8.2 Cost benefit of RBI for VAM plant

Another example of RBI implementation is from a Vinyl Monomer Acetate process unit
in South East Asia where DNV over a period of four months implemented RBI,
prepared detailed inspection plans and prepared the documentation to support
application to the local authorities for extension of the inspection interval for the
statutory equipment from 2 to 4 years. The application was approved and extension was
granted 4 months after submission of the application. The direct cost savings according
to the client was US $700k per year not including the production loss. This amounted to
US $ 200,000 day and considering a normal T/A shutdown of three weeks this would
represent savings of about US $4.2 million.

9. EXAMPLES OF INTEGRATED RBI / RCM PROJECTS

9.1 Examples of integrated RBI/ streamlined RCM and AIM

DNV has recently implemented RBI for CPC in a FCCU in a Taiwan refinery using the
Primalux Asset Integrity Management system.

An examples of ongoing projects in US which involved integrated RBI and RCM. is the
Valero Texas City Refinery project.

The Texas City Refinery initiated RBI and RCM in the plant: a combination of RBI
and RCM was implemented to assess approximately 1,488 pressure relieving devices in
the plant and at the same time RBI was ongoing for the FCCU, GasCon, MTBE and HF
Alky units.

The scope of work included:

• Asset Performance Evaluation (qualitative) similar to the T/A benchmarking

study done to identify leading and lagging indicators across the 16 functional
PSM elements
• Development of equipment hierarchies
• Identification of critical equipment, either from a risk perspective or
criticality to process schema
• Review equipment histories and conditions
• Define process conditions or operating envelopes
• Perform RCM FMEA on appropriate equipment
• Perform RBI on static equipment and piping
• Develop maintenance and inspection intervals and tasks
• Update relevant databases

As future inspections are performed, the RBI database will be updated to keep it
evergreen. Integration with the plant inspection management PCMS system and the

20
SAP ERP was performed as an important task to facilitate implementation of integrated
RBI and RCM.

10. CONCLUSIONS

• Statistics from the refining and hydro carbon industry show increasing number of
large property losses due to failure of pressure containing equipment. These
explosions could probably have been prevented had effective Mechanical Integrity
systems and predictive assurance processes been implemented and appropriate risk
assessments conducted.

• DNV's world wide experience from conducting of more than 220 RBI and combined
RBI/RCM projects for refineries, petrochemical and nuclear plants have
demonstrated significant potential risk reductions and cost benefits of these novel
technologies.

• Although during the 1990's new predictive tools and methodologies have been
developed for maintenance and inspection planning, the statistics available from US
shows that for most plants the majority of the maintenance strategies are still
reactive.

• Seamless RBI and RCM methodologies are available and have been
implemented in some plants by DNV. It is emphasized that these concepts only
work if the equipment items are accurately identified, essential factors correctly
evaluated, maintenance and inspection records and service histories accurately and
carefully recorded and the RBI and RCM analyses properly carried out and recorded
by qualified plant personnel and consultants.

• Asset Integrity Management systems that interface with the predictive assurance
process tools (RBI, RCM and anomaly tracking) and the enterprise resource
planning system (ERP) such as SAP are required to handle the massive amounts of
data and ensure a successful implementation of the predictive maintenance
strategies.

REFERENCES

[1] James Coco: "Large Property Damage Losses in the Hydrocarbon

Industry" Paper presented at: "Industry Workshop on Practical application of
Process Safety Management - Lessons Learned and Industry Best Practises".
Intercontinental Hotel 28-29 August 2001

[2] American Petroleum Institute: “ Recommended Practice for Fitness-For-

Service” API RP 579 April 2000.

[3] British Standards Institution: ”Guide on methods for assessing the acceptability of
flaws in fusion welded structures”. BS 7910 : 1999

21
[4] Government of Victoria: " Major Hazard Facilities Regulation - Guidance Note
"Asset Integrity Management under the Occupational Health and Safety (Major
Hazard Facilities) Regulations MHD GN – 18 Revision D February 2002.

[5] American Petroleum Institute: " Risk-Based Inspection Base Resource Document"
API Publication 581, First edition May 2000

[6] Det Norske Veritas: "Risk Based Inspection of Offshore Topsides Static
mechanical Equipment". DNV-RP-G101, January 2000.

22