The Real World Impact of ISA 18.2on Process Industries

Kevin BrownMatrikon Inc.

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

Operators on alert

Operator response, alarm standards, protection layers

keys to safe plantsIntech, September 2009

Kevin Brown - Introduction

• 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

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

• 550 employees• 300+ consultants with

extensive domain expertise

• Complete services, from planning to execution

Global Presence

Complete Solution Provider

Company Overview

Consultants275+

R&D100+

Other150+

• 18 offices• 17 Partners• Strong Presence in

Toronto (25 Consultants)• TSE: MTK

What is Alarm Management?

“Process by which alarms are engineered, monitored, and managed to ensure safe, reliable operations”

What is Alarm Management?

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

What is a Lack of Alarm Management?

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/

OSHA leveraged fines for

this incident exceeded $87MM

Alarm Management: It’s about Safety!

Documented financial losses

estimated at $1.5 billion

An Example Plant Incident

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

Possible Outcome

Employee Impact• Possible Injury• Potential Fatality• Flow-on Family/Community effectsEmployer 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?

Key Features ISA 18.2

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

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

ISA 18.2 Alarm Performance KPIs

Industry Benchmarks: Room to Improve!

Other

900

35

180

25/40/35

5

Power

2000

65

350

25/40/35

8

PetroChem

1500

100

180

25/40/35

9

Oil & Gas

1200

50

220

25/40/35

6

ISA

144

5

10

80/15/5

1

Average Alarmsper Day

Standing (stale)Alarms

Peak Alarmsper 10 Minutes

Average Alarms/10 Minute Interval

Distribution %(Low/Med/High)

Alarm Management Lifecycle

Philosophy

Audit

Rationalization

Identification

Detailed Design

Implementation

Maintenance

Operation

Management of Change

Monitoring & Assessment

D

C

E

AJ

B

G

HF

I

Alarm Management Lifecycle

• Philosophy• Identification• Rationalization• Detailed Design• Implementation• Operation• Maintenance• Monitoring & Assessment• Management of Change• Audit

Entering the Lifecycle - Philosophy

Philosophy

Audit

Rationalization

Identification

Detailed Design

Implementation

Maintenance

Operation

Management of Change

Monitoring & Assessment

D

C

E

A

J

B

G

H

F

I

• Greenfield or Brownfield sites• Objectives of the alarm system• Design it correctly and keep it there

Philosophy

Audit

Rationalization

Identification

Detailed Design

Implementation

Maintenance

Operation

Management of Change

Monitoring & Assessment

D

C

E

A

J

B

G

H

F

I

Entering the Lifecycle - Monitoring & Assessment

• Focus on quantitative analysis to determine gaps• Follow Maintenance & MOC paths to resolve

Philosophy

Audit

Rationalization

Identification

Design

Implementation

Maintenance

Operation

Management of Change

Monitoring & Assessment

D

C

E

A

J

B

G

H

F

I

Audit

ISA 18.2 Compliance

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

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.

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

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

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

Questions?