The Real World Impact of ISA 18.2 on Process Industries Kevin Brown Matrikon Inc.

1. The Real World Impact of ISA 18.2on Process IndustriesKevin BrownMatrikon Inc.

2. Operators on alert Operator response, alarm standards, protection layers keys to safe plants Intech, September 2009 Agenda • Introduction • What is Alarm Management • What is a Lack of Alarm Management • OH&S & Legislation • An Example Plant Incident • Demystifying Standards & Guidelines • ISA 18.2 Compliance • Alarm Management Lifecycle • Steps to Compliance • Questions

3. Manager – North America Alarm Management Team 4.5 years at Matrikon • Completed projects from upgrades to $2.8 MM • Audits • Alarm Philosophy development • Facilitate alarm rationalization Spent 20 years in plants in process control • Experience with different computer control systems • Bailey, Taylor, Advant, GE, Allen Bradley, Metso, TDC3000 • Experience with Historians • Simsci, MOPS, OSI PI • DMZ network design and setup Kevin Brown - Introduction

4. Matrikon Alarm Management Matrikon has 20 years experience and is the Global Leader in the deployment of Enterprise Wide Alarm Monitoring Solutions with the world’s leading companies,…innovation, safety, commitment to value and high ethical standards

5. Company Overview Other150+ Complete Solution Provider Consultants275+ R&D100+ • 550 employees • 300+ consultants with extensive domain expertise • Complete services, from planning to execution Global Presence • 18 offices • 17 Partners • Strong Presence in Toronto (25 Consultants) • TSE: MTK

6. What is Alarm Management? “Process by which alarms are engineered, monitored, and managed to ensure safe, reliable operations”

7. What is Alarm Management?

8. What else is Alarm Management? • Continuous lifecycle • Plant maintenance/reliability • Good process control • Outcome of a risk assessment • Related to equipment failure • A form of Enhanced/Advanced Control • Abnormal Situation Management • It has been “widely ignored” for a long time

9. What is a Lack of Alarm Management?

11. What is a Lack of Alarm Management? Example: Texas City Oil Refinery 2005. Precursors: - Maintenance cut by 25% - Only one Control Room Operator for the whole plant - Failed level switches - Level transmitter reading incorrectly – no alarm - Workers within exclusion zone - Decided against installing safety flares Outcomes: - 15 people killed - Could have spent a couple of $m but ended up costing $1.6b - Oil Refining industry are now relatively proactive in AM (Ref.) http://www.texascityexplosion.com/

12. Alarm Management: It’s about Safety! Documented financial losses estimated at $1.5 billion OSHA leveraged fines for this incident exceeded $87MM

13. An Example Plant Incident

14. An Example Plant Incident • Plant is unstable, getting towards end of 12hr shift • Tank containing hot material reaches HH level • Trip on HH level interlock was disabled to replace the instrument and inadvertently not re-enabled • Operator misses the alarm because he/she is overloaded and there is an alarm flood • High level safety switches that trip the incoming pump have not been tested for over two years and fail to operate • Tank overflows and severely burns worker below

15. Possible Outcome Employee Impact • Possible Injury • Potential Fatality • Flow-on Family/Community effects Employer Impact • Operational Downtime/Loss of Production • Investigation by the relevant authority • Expert Witness in Court • 1st Question to Employer: “Did you comply with an ISA Standards or Internationally accepted Standard”? • 2nd Question to Employer: “Did you follow known, good engineering practice”? In recent cases there has been more use of expert witnesses. What would an expert witness say in this case?

16. Key Features ISA 18.2

17. Key Features – ISA 18.2 • Large focus on an Alarm System Lifecycle • Clear Alarm System Performance KPIs • Section on compliance • Alarm Philosophy – what must be included • Alarm System requirements Specification • Identification • Rationalization • Advanced Methods • Less examples are given • Complimentary to EEMUA 191

18. Matrikon & ISA 18.2 • Participation • Mike Brown • Jeff Gould • Michael Marvan • Alan Armour • Section Leadership • Operations • Maintenance • Management of Change • Sub-Committees • Monitoring & Assessment • Audit • Analysis (Annex) • ISA’s Committee Website: http://www.isa.org/MSTemplate.cfm?MicrositeID=165&CommitteeID=4627

19. ISA 18.2 Alarm Performance KPIs

20. Oil & Gas PetroChem Power Other ISA Average Alarmsper Day 144 1200 1500 2000 900 Standing (stale)Alarms 5 50 100 65 35 Peak Alarmsper 10 Minutes 10 220 180 350 180 Average Alarms/10 Minute Interval 1 6 9 8 5 Distribution %(Low/Med/High) 80/15/5 25/40/35 25/40/35 25/40/35 25/40/35 Industry Benchmarks: Room to Improve!

21. Alarm Management Lifecycle

22. Audit J Philosophy A I Management of Change Identification B Rationalization C Detailed Design D E Implementation Monitoring & Assessment H Operation F Maintenance G Alarm Management Lifecycle • Philosophy • Identification • Rationalization • Detailed Design • Implementation • Operation • Maintenance • Monitoring & Assessment • Management of Change • Audit

23. Audit J Philosophy A Management of Change I Identification B Rationalization C D Detailed Design Implementation E Monitoring & Assessment H Operation F Maintenance G Entering the Lifecycle - Philosophy • Greenfield or Brownfield sites • Objectives of the alarm system • Design it correctly and keep it there

24. Entering the Lifecycle - Monitoring & Assessment Audit J Philosophy A I Management of Change Identification B • Focus on quantitative analysis to determine gaps • Follow Maintenance & MOC paths to resolve Rationalization C Detailed Design D E Implementation Monitoring & Assessment H Operation F Maintenance G

25. Audit Audit J A Philosophy Management of Change I Identification B Rationalization C Design D Implementation E Monitoring & Assessment H Operation F Maintenance G

26. ISA 18.2 Compliance

27. Alarm Management is now a Compliance Issue • Compliance: ANSI / ISA SP18.2 • Similar to ANSI/ISA S84.01: • nationally recognized standard • qualifies as a nationally recognized standard for safety systems such that OSHA recognizes as “recognized and generally accepted engineering practice” • Not a requirement to meet OSHA 1910.119 PSM requirements but bears substantial weight with regard to implementing safety/alarm systems • burden of proof is on the User to demonstrate that they have followed generally accepted engineering practice

28. ISA 18.2 Compliance. • Section 4.1: Conformance Guidance To conform to this standard, it must be shown that each of the requirements in the normative clauses has been satisfied. • Section: 4.2 Existing Systems (Grandfathering Clause) For existing alarm systems designed and constructed in accordance with codes, standards, and/or practices prior to the issue of this standard, the owner/operator shall determine that the equipment is designed, maintained, inspected, tested, and operated in a safe manner.

29. Historical Findings • Industry estimate: $10 Billion per year from abnormal situations • Incident costs from $100K-$1 Million per plant per year • Refineries suffer a major incident once every three years costing $80M • Insurance companies show industry claims >$2.2 Billion per year due to equipment damage (North America) ASM Consortium Findings

30. Personal Observations. • Many process plants in North America are not doing enough • Alarms form part of your plant’s layer of protection • There will be more prosecutions for OH&S breaches

31. What Steps Can You Take? • Senior Management Sponsorship • Purchase ISA 18.02 • Undertake an audit of your alarm system. Minimum do Monitoring and Assessment • Prepare a Philosophy Document and then Functional Specifications • Prepare a Strategic Plan • Just Do it

32. Questions?