HSE-MS Audit Team Briefing Sessions

T-1 10/30/97SIEP - EPS-HE

HSE-MS AuditHSE-MS Audit

Team BriefingTeam Briefing

SessionsSessions


Team Briefing programmeTeam Briefing programme Why do we audit?Why do we audit? When do we audit?When do we audit? Link Model HSE-MS auditingLink Model HSE-MS auditing What do we audit?What do we audit? Audit methodologyAudit methodology What do we audit against?What do we audit against? Ten principles of HSE-MS (Ten principles of HSE-MS (EP-95000 questionnaire)EP-95000 questionnaire)

Site visits & interviewsSite visits & interviews Report WritingReport Writing Audit ratingAudit rating Audit scheduleAudit schedule Audit Team task distributionAudit Team task distribution


RisRisk k

defidefinitinitionon

Risk = Frequency * ConsequenceRisk = Frequency * Consequence


1970 Torrey Canyon 1970 Torrey Canyon $ 10 Million$ 10 Million 1980 Amoco Cadiz 1980 Amoco Cadiz $ 100 ,,$ 100 ,, 1986 Piper Alpha 1986 Piper Alpha $ 3000? ,,$ 3000? ,, 1990 Exxon Valdez 1990 Exxon Valdez $ 10000 ,, $ 10000 ,, 1993 Braer 1993 Braer $ 200? ,,$ 200? ,, 1995 Sea Empress 1995 Sea Empress $ 150+ ,,$ 150+ ,,

EscalatingEscalatingImpact of ErrorsImpact of Errors

Next ??????Next ??????

Insurable Risks - Assets / LiabilitiesInsurable Risks - Assets / Liabilities


1970 Shell Nuclear Initiative1970 Shell Nuclear Initiative $ 1000? million$ 1000? million 1990 Showa Shell 1990 Showa Shell $ 1500 ,,$ 1500 ,, 1996 Barings Bank 1996 Barings Bank $ 2000 ,, $ 2000 ,, 1996 Brent Spar 1996 Brent Spar $ 100? ,,$ 100? ,, 1996 Shell Nigeria1996 Shell Nigeria $ ???$ ??? ,, ,,


Next ??????Next ??????

Non Insurable Risks - Commercial/FinancialNon Insurable Risks - Commercial/Financial



Next ??????Next ??????

High Impact events - All avoidableHigh Impact events - All avoidable

Bhopal Bhopal - 2000+ people - 2000+ peopleExxon Valdez Exxon Valdez - Environment - EnvironmentHerald of Free EnterpriseHerald of Free Enterprise - 180 lives - 180 livesEstoniaEstonia - 800 people - 800 people

ConsequencesConsequencesLeading to new standards (cost effective?) Leading to new standards (cost effective?) Loss of businessLoss of business


Business RiskBusiness Risk

".. the safety and environmental risks ".. the safety and environmental risks of our operations are perhaps the of our operations are perhaps the largest business risk we run, .."largest business risk we run, .."

Moody-Stuart letter 17/3/92Moody-Stuart letter 17/3/92to Opco MDs and GMsto Opco MDs and GMs


Risk Risk managementmanagement

Changing goalposts !Changing goalposts ! Steady (reduced?) frequenciesSteady (reduced?) frequencies

Increasing consequencesIncreasing consequences

Have we gained ?Have we gained ?

Risk of error needs to be massively reduced!Risk of error needs to be massively reduced!

Risk = Frequency * ConsequenceRisk = Frequency * Consequence


SIEP ViewSIEP View

““There should be absolutely no question of operational There should be absolutely no question of operational urgency or other pressures taking priority over safety. urgency or other pressures taking priority over safety. It has been repeatedly demonstrated that improved It has been repeatedly demonstrated that improved safety in operations goes hand in hand with greater safety in operations goes hand in hand with greater efficiency, quality and cost effectiveness.......efficiency, quality and cost effectiveness.......

M Moody-Stuart 24/4/92M Moody-Stuart 24/4/92

..... I would therefore request you to ensure that work ..... I would therefore request you to ensure that work does not start before it is confirmed that essential does not start before it is confirmed that essential safety systems are in place and that staff are safety systems are in place and that staff are accountable for this requirement. Where we cannot accountable for this requirement. Where we cannot ensure safety, operations should be suspended.ensure safety, operations should be suspended.

T-10 10/30/97SIEP - EPS-HE

EP 93-1600 (Nov 1993)EP 93-1600 (Nov 1993)E&P Guideline on Audits and ReviewsE&P Guideline on Audits and Reviews

It is the responsibility of the Chief Executivs and managers of It is the responsibility of the Chief Executivs and managers of the Group Companies to set up, maintain and operate an the Group Companies to set up, maintain and operate an appropriate framework of business controls.appropriate framework of business controls.

The process of internal The process of internal auditaudit provides a means for provides a means for independently reviewing these controls.independently reviewing these controls.

AuditAudit plans should be drawn up which cover all aspects of a plans should be drawn up which cover all aspects of a Company’s activities (including operational, commercial, Company’s activities (including operational, commercial, technical, health, safety and environmental aspects).technical, health, safety and environmental aspects).

Appropriate resources with skills matching the objectives Appropriate resources with skills matching the objectives should be used to conduct should be used to conduct auditsaudits..

The Company’s Internal The Company’s Internal AuditAudit Committee should approve the Committee should approve the auditaudit plan, monitor progress against plan, review significant plan, monitor progress against plan, review significant control findings, and ensure that agreed action plans are control findings, and ensure that agreed action plans are followed up. followed up.

Group Policy:Group Policy:

The Group policy applies both to SIEP-EP and the E&P Operating Companies.The Group policy applies both to SIEP-EP and the E&P Operating Companies.

T-11 10/30/97SIEP - EPS-HE

HSE Audits & Reviews 84-98HSE Audits & Reviews 84-98

96

10

15

20

25

30

35

40

45

50

0

5

84 85 86 87 88 89 90 91 92 93 94 95 97

Health

ManagementActivityRigSeismicStart upFacility

98

Environmental

T-12 10/30/97SIEP - EPS-HE

On OU (Opco) requestOn OU (Opco) requestSIEP steering/guidance to be provided by SIEP steering/guidance to be provided by

RBDs, upon detection that OUs do no RBDs, upon detection that OUs do no longer operate with boundaries of Group longer operate with boundaries of Group standards standards

New World New World (post SIEP reorganisation)(post SIEP reorganisation)

frequency SIEP led E&P Auditsfrequency SIEP led E&P Audits

Coordinate schedule such that same ground is Coordinate schedule such that same ground is not covered twice within recommended periodnot covered twice within recommended period

T-13 10/30/97SIEP - EPS-HE

Business ControlsBusiness Controls

Business controls are the Business controls are the structured means which structured means which management uses to help it management uses to help it achieve the objectives which have achieve the objectives which have been set for the company. been set for the company.

T-14 10/30/97SIEP - EPS-HE

Business Controls FrameworkBusiness Controls Framework

Control Mechanisms•Organisation•Policy•Procedures•Supervision

Business Operations

• Management review and appraisal

BusinessEnvironment Business

Objectives

Processes

Control Application

T-15 10/30/97SIEP - EPS-HE

Model Management SystemModel Management System

Correct

Improve

Policy & Objectives

Organisation Responsibilities

& Resources

Standards & Procedures

Implementation & Monitoring

Review & Appraisal

Control

T-16 10/30/97SIEP - EPS-HE

HSE Management HSE Management SystemSystem

Leadership and Commitment

Policy and Strategic Objectives

Management Review

Corrective Action & Improvement

Audit

Organisation, ResponsibilitiesResources, Standards & Doc.

Corrective Action & Improvement

Planning & Procedures

Hazard and Effects Management

Implementation Monitoring

Corrective Action

T-17 10/30/97SIEP - EPS-HE

Mapping HSE-MSMapping HSE-MS

Leadership & CommitmentLeadership & Commitment

Policy & Strategic ObjectivesPolicy & Strategic Objectives

Organisation & Responsibilities Organisation & Responsibilities

Resources & Competence Assurance Resources & Competence Assurance

HEMPHEMP

PlanningPlanning

Standards, Procedures & Doc. ControlStandards, Procedures & Doc. Control

Implementation & MonitoringImplementation & Monitoring

Audit & Corrective ActionAudit & Corrective Action

Management Review & ImprovementManagement Review & Improvement

Leadership & CommitmentLeadership & Commitment


Organisation, Responsibilities, Organisation, Responsibilities,

Resources, Resources,

Standards & Doc. ControlStandards & Doc. Control

HEMPHEMP

Planning & ProceduresPlanning & Procedures

ImplementationImplementation

Audit Audit

Management ReviewManagement Review

HSE-MS for auditingHSE-MS for auditingHSE-MS as per modelHSE-MS as per model

T-18 10/30/97SIEP - EPS-HE

Audit DefinitionAudit Definition

Audit is the systematic process Audit is the systematic process whereby it is established that whereby it is established that business controls:business controls: are complete and consistentare complete and consistent are cost-effective and efficientare cost-effective and efficient safeguard the company’s resources safeguard the company’s resources

and promote their effective useand promote their effective use provide, and protect the integrity of, provide, and protect the integrity of,

required records and informationrequired records and information comply with laws and regulationscomply with laws and regulations

T-19 10/30/97SIEP - EPS-HE

Internal Audit MissionInternal Audit Mission

To provide, as an integral part of To provide, as an integral part of

the management review the management review

process, process, independentindependent advice on advice on

the maintenance and the maintenance and

improvement of a improvement of a well-balancedwell-balanced

business control framework business control framework

appropriateappropriate to the organisation to the organisation

T-20 10/30/97SIEP - EPS-HE

Structure of QuestionnairesStructure of QuestionnairesGeneric Questionnaire (Generic Questionnaire (common to all HSE Audits)common to all HSE Audits)

Leadership & CommitmentLeadership & Commitment Policy & Strategic ObjectivesPolicy & Strategic Objectives Organisation & ResponsibilitiesOrganisation & Responsibilities Resources & CompetenceResources & Competence Hazards and Effects ManagementHazards and Effects Management Planning Planning Standards, Procedures & Doc. ControlStandards, Procedures & Doc. Control Implementation & MonitoringImplementation & Monitoring Audit & Corrective ActionAudit & Corrective Action Management ReviewManagement Review

Subsidiary Subsidiary QuestionnaireQuestionnaire

FacilitiesFacilities


Start-UpStart-Up


SeismicSeismic


DrillingDrilling


ActivityActivity


EnvironmtEnvironmt


HealthHealth


FacilitiesFacilities

This is an example only.Team leader to modify

as needed

T-21 10/30/97SIEP - EPS-HE

Objective & StrategyObjective & Strategy

Objective:Objective: To provide assurance that HSE management To provide assurance that HSE management

system is effectivesystem is effective

StrategyStrategy Look for unknown problemsLook for unknown problems Focus on gaps between areas of responsibilityFocus on gaps between areas of responsibility Investigate identified deficiencies in depthInvestigate identified deficiencies in depth

- find underlying causes- find underlying causes Record all areas investigated, noting any Record all areas investigated, noting any

omissionsomissions

T-22 10/30/97SIEP - EPS-HE

Audit OverviewAudit Overview

Based on National and Company Based on National and Company standardsstandards

Sampling processSampling processOverall impression usually negativeOverall impression usually negative

attempt to balance but focus on improvementattempt to balance but focus on improvement

Focus on controlsFocus on controlsRecommendations illustrate rather than Recommendations illustrate rather than

limit solutionlimit solutionOwnership by whole teamOwnership by whole team

facts supported by whole teamfacts supported by whole team judgement by consensusjudgement by consensus

T-23 10/30/97SIEP - EPS-HE

Start Up Audit Start Up Audit

Verification prior to start-up of the facility that:Verification prior to start-up of the facility that:

HSE management is effective during HSE management is effective during development and constructiondevelopment and construction

Recommendations of design reviews, Hazops Recommendations of design reviews, Hazops etc. have been followed upetc. have been followed up

Hardware is fit for intended purpose and Hardware is fit for intended purpose and complies with standardscomplies with standards

Operating, maintenance and emergency Operating, maintenance and emergency procedures are available, adequate, and procedures are available, adequate, and understoodunderstood

People have been trained for their workPeople have been trained for their work

T-24 10/30/97SIEP - EPS-HE

Areas CoveredAreas Covered

Auditee OrganisationAuditee Organisation CompetenceCompetence

HSE ManagementHSE Management Effectiveness of management Effectiveness of management

controlscontrols

Equipment and OperabilityEquipment and Operability Fitness for purposeFitness for purpose

Design ProcessDesign Process Reviews and change controlReviews and change control

OtherOther Client's requestClient's request

T-25 10/30/97SIEP - EPS-HE

Cause and EffectCause and Effect

Businessobjectives?

Policy failing?

Organisationfailing?

Review & App.failing?

Proceduralfailing?

Supervisoryfailing?

Detailed findings/deficiencies/problems Problem

Recommendation

Cause

T-26 10/30/97SIEP - EPS-HE

Audit ProcessAudit Process

• Terms of reference• Control Assessment Matrix• Audit programme (incl. test plans)

FamiliarisationFamiliarisation

Review & TestingReview & Testing

ReportingReporting

Site visit Interviews Test findings

Drafting EditingReport

Finalisation RatingPresentFindings

StudyDocumentation

T-27 10/30/97SIEP - EPS-HE

Audit processAudit process

BackgroundBackgrounddatadata

Kick-offKick-offmeetingmeeting

Audit Programme & Audit Programme & QuestionnaireQuestionnaire

Assess structureAssess structureof controlsof controls

Test Test controlscontrols

DetailDetailfindings findings

ClearClearfindings findings

ClusterClusterissuesissues

SummariseSummariseFindingsFindings

Present toPresent toAuditeeAuditee

Audit reportSummarySummary

VeryVerydetaileddetailed

Audit Audit RatingRating

LevelLevelofof

detaildetail

FamiliarisationFamiliarisation Review & testingReview & testing ReportingReporting

Establish state Establish state of controlsof controls

T-28 10/30/97SIEP - EPS-HE

To assess the effectiveness of Barendrecht - Ziedewij gas production and evacuation To assess the effectiveness of Barendrecht - Ziedewij gas production and evacuation system HSE-MS.system HSE-MS.

Verify that: Verify that: relevant Safety Case is implemented and that the systems are operated relevant Safety Case is implemented and that the systems are operated

accordinglyaccordingly HSE risks are adequately identified and those considered acceptable are HSE risks are adequately identified and those considered acceptable are

managed at ALARP levels.managed at ALARP levels.

Terms of ReferenceTerms of ReferenceOBJECTIVEOBJECTIVE

SCOPESCOPE

Corporate MSs, other than SC management and documents, Corporate MSs, other than SC management and documents, standards and organisation elements directly related to routine standards and organisation elements directly related to routine operations of the systems are excluded. operations of the systems are excluded.

Prod. ops. and maint. activities at the B & Z installations Prod. ops. and maint. activities at the B & Z installations All interfaces with relevant facilities.All interfaces with relevant facilities.

Example only: Team leader to edit

T-29 10/30/97SIEP - EPS-HE

Awareness of and compliance with the Awareness of and compliance with the management of hazards management of hazards

Adequacy of measures (planned or in place) to Adequacy of measures (planned or in place) to rectify the rectify the shortcomings identified in the V&G shortcomings identified in the V&G document,document,

Adequacy of emergency response and recovery Adequacy of emergency response and recovery measures,measures,

Terms of ReferenceTerms of Reference

Special attentionSpecial attention


T-30 10/30/97SIEP - EPS-HE

StandardsStandards

Laws and regulations of The NetherlandsLaws and regulations of The Netherlands Permit requirementsPermit requirements Current NAM (BUO) standards and proceduresCurrent NAM (BUO) standards and procedures V&G document.V&G document.

Audit will be conducted along EP 95000 methodologyAudit will be conducted along EP 95000 methodology

The audit may also include comment on any shortfall The audit may also include comment on any shortfall in the above in relation to Shell Group and industry in the above in relation to Shell Group and industry standards.standards.


T-31 10/30/97SIEP - EPS-HE

StandardsStandards

Does it meet legal requirements?Does it meet legal requirements? Does it meet current NAM standards?Does it meet current NAM standards?

if not, upgrade automaticallyif not, upgrade automatically

Does it meet current SIEP standard?Does it meet current SIEP standard? Does it meet current industry standard?Does it meet current industry standard?

if not, upgrade if cost-effectiveif not, upgrade if cost-effective

T-32 10/30/97SIEP - EPS-HE

Leadership & Leadership & CommitmentCommitment

Do managers effectively balance any conflict in the Do managers effectively balance any conflict in the competing requirements to safeguard technical competing requirements to safeguard technical integrity and to optimise cashflow?integrity and to optimise cashflow?

Do staff believe that management and supervisors Do staff believe that management and supervisors are serious about the priority of HSE matters?are serious about the priority of HSE matters?

Do managers and supervisors periodically visit Do managers and supervisors periodically visit worksites and attend departmental safety meetings?worksites and attend departmental safety meetings?

Do managers and supervisors lead by example - do Do managers and supervisors lead by example - do they follow their own rules?they follow their own rules?

HSE an integral part of businessHSE an integral part of business

T-33 10/30/97SIEP - EPS-HE


Is there a Health, Safety and Environment policy?Is there a Health, Safety and Environment policy? Are strategic objectives defined (also for HSE aspects)?Are strategic objectives defined (also for HSE aspects)? Do the policy and objectives require continuous improvement, Do the policy and objectives require continuous improvement,

and set a leadership goal?and set a leadership goal? Are objectives cascaded to tasks and targets for all staff?Are objectives cascaded to tasks and targets for all staff? Does the policy contain an explicit statement that work should be Does the policy contain an explicit statement that work should be

stopped/not started if unsafe?stopped/not started if unsafe? Are the policy and objectives endorsed by the present chief Are the policy and objectives endorsed by the present chief

executive?executive? Are they readily available to employees and contractors?Are they readily available to employees and contractors? Do employees and contractors understand policy and objectives?Do employees and contractors understand policy and objectives? Is Contractors' HSE management is consistent with Company's?Is Contractors' HSE management is consistent with Company's?

Challenging policy and objectives understood by allChallenging policy and objectives understood by all

T-34 10/30/97SIEP - EPS-HE

Organisation & Organisation & ResponsibilitiesResponsibilities

Is the organisation appropriate?Is the organisation appropriate? Are boundaries and interfaces adequately Are boundaries and interfaces adequately

described?described? Are responsibilities defined to fully cover all Are responsibilities defined to fully cover all

activities?activities? Is there an appropriate balance between line staff Is there an appropriate balance between line staff

and advisers?and advisers? Do all staff have job descriptions (also defining Do all staff have job descriptions (also defining

HSE aspects)?HSE aspects)? Do staff understand and accept their Do staff understand and accept their

responsibilities and authorities?responsibilities and authorities?

T-35 10/30/97SIEP - EPS-HE

Resources & Competence Assurance Resources & Competence Assurance

Are resources adequate for effective HSE Are resources adequate for effective HSE management?management?

Are job competence needs defined?Are job competence needs defined? Are individual competencies assessed against Are individual competencies assessed against

the job requirements?the job requirements? Are the mandatory competency requirements Are the mandatory competency requirements

being complied with?being complied with? Is there an structured HSE training system?Is there an structured HSE training system? Does the HSE training system meet line Does the HSE training system meet line

requirements?requirements? Is the HSE training system being used?Is the HSE training system being used?

T-36 10/30/97SIEP - EPS-HE

HEMPHEMP

Have all hazards and effects been identified?Have all hazards and effects been identified? Are consistent screening criteria avalable? Are consistent screening criteria avalable? Have all risks and effects from from hazards been evaluated ?Have all risks and effects from from hazards been evaluated ? Have appropriate measures been defined and implemented to reduce intolerable risks Have appropriate measures been defined and implemented to reduce intolerable risks

to tolerable levels?to tolerable levels? Have appropriate measures been defined and implemented to reduce tolerable risks to Have appropriate measures been defined and implemented to reduce tolerable risks to

ALARP level?ALARP level? Have tolerable risks been elliminated where practicable?Have tolerable risks been elliminated where practicable? Are the procedures and other measures and practices effective in containing hazards at Are the procedures and other measures and practices effective in containing hazards at

ALARP level?ALARP level?

Hazards are known, ALARP and containedHazards are known, ALARP and contained

T-37 10/30/97SIEP - EPS-HE

Managing riskManaging risk

Probability of occurrenceProbability of occurrence

Manage Manage AlarpAlarp

AvoidAvoid??????

AcceptAccept??????

LowLow

HighHigh

LikelyLikelymagnitudemagnitude

of of lossloss

HighHigh

REDUCE

EliminateEliminate

T-38 10/30/97SIEP - EPS-HE

Insurance and Risk Insurance and Risk managementmanagement

Businessobjectives?

Policy failing?

Organisationfailing?

Review & App.failing?

Proceduralfailing?

Supervisoryfailing?

Detailed findings/deficiencies/problemsProblem

Recommendation

Cause

HSEHSE ManagementManagement SystemSystem

T-39 10/30/97SIEP - EPS-HE

ConsequenceConsequenceconsequence of scenarios that can develop from consequence of scenarios that can develop from the release of a hazard given the available barriers the release of a hazard given the available barriers and defencesand defences (in incidents or near misses the hazard has been (in incidents or near misses the hazard has been released already whereas in all other cases the hazard released already whereas in all other cases the hazard has not yet been released)has not yet been released)

ProbabilityProbabilityprobability is estimated on the basis of historical probability is estimated on the basis of historical evidence that the assessed consequence has evidence that the assessed consequence has materialised (i.e. not the probability of the release of materialised (i.e. not the probability of the release of the hazard)the hazard)

Risk Assessment MatrixRisk Assessment Matrix

DefinitionsDefinitions

T-40 10/30/97SIEP - EPS-HE

Weakness Classification Matrix Weakness Classification Matrix

High: Though not serious, essential to be brought to Management attention. Includes medium weaknesses as repeat from previous reports.

Low: No major HSE impact at process level, correction will assure greater effectiveness/efficiency in process concerned.

Serious: Exposes OU to a major extent in terms of achievement of corporate HSE objectives or results.

Medium: Could result in perceptible and undesirable effect on achievement of HSE objectives.

People Assets Environ-ment

Repu-tation

Severity

0

1

2

3

4

5

No injuryor damageto health

Slight injuryor healtheffects

Minor injuryor health

effects

Major injuryor healtheffects

Single fatalityor permanenttotal disability

Multiple fatalities

Nodamage

Slightdamage

Minordamage

Localdamage

Majordamage

Extensivedamage

Noeffect

Noimpact

Slighteffect

Slightimpact

Minoreffect

Minorimpact

Localisedeffect

Consider-able

impact

Majoreffect

Nationalimpact

Inter-nationalimpact

Massiveeffect

Never heard of in

EP industry

A

IncorporateIncorporate

risk reduction risk reduction

Measures Measures

Has occurred in EP industry

B

Has occurred in

the audited OU

C DHappens

several times a year in the audited OU

EHappens

several times a year in the

audited facility

IntolerableIntolerable

eliminate eliminate

Manage for Manage for

continuous continuous

improvement improvement

T-41 10/30/97SIEP - EPS-HE

Weakness Classification Matrix Weakness Classification Matrix

People

Assets Environ-ment

Repu-tation

Severity

0

1

2

3

4

5

No injuryor damageto health

Slight injuryor healtheffects

Minor injuryor health

effects

Major injuryor healtheffects

Single fatalityor permanenttotal disability

Multiple fatalities

Nodamage

Slightdamage

Minordamage

Localdamage

Majordamage

Extensivedamage

Noeffect

Noimpact

Slighteffect

Slightimpact

Minoreffect

Minorimpact

Localisedeffect

Consider-able

impact

Majoreffect

Nationalimpact

Inter-nationalimpact

Massiveeffect

Never heard of in

EP industry

A

LowLow

MediumMedium

HighHigh

Has occurred in EP industry

B

Has occurred in

the audited OU

C DHappens

several times a year in the audited OU

EHappens

several times a year in the

audited facility

SeriousSerious





T-42 10/30/97SIEP - EPS-HE

Risk to PeopleRisk to PeopleSeverity Description

0 No injury or damage to health

1 Slight injury or health effects (including first aid case and medical treatment case) - Not affecting work performance or causing disability.

2 Minor injury or health effects (Lost Time Injury) - Affecting work

performance, such as restriction to activities (Restricted Work Case)or a need to take a few days to fully recover (Lost Work Case). Limited health effects which are reversible, eg skin irritation, food poisoning.

3 Major injury or health effects (including Permanent Disability) - Affecting work performance in the longer term, such as a prolonged absence from work. Irreversible health damage without loss of life, eg noise induced hearing loss, chronic back injuries.

4 Single fatality or permanent total disability. From an accident or occupational illness (poisoning, cancer).

5 Multiple fatalities - From an accident or occupational illness (poisoning, cancer).

T-43 10/30/97SIEP - EPS-HE

Risk to AssetsRisk to Assets

Severity Description

0 Zero damage.

1 Slight damage - No disruption to operation (costs less than US$10,000).

2 Minor damage - Brief disruption (costs less than US$100,000).

3 Local damage - Partial shutdown (can be restarted but costs up toUS$500,000).

4 Major damage - Partial operation loss (2 weeks shutdown, costs up to US$10,000,000.

5 Extensive damage - Substantial or total loss of operation (costs in excess of US$10,000,000)

T-44 10/30/97SIEP - EPS-HE

Risk to EnvironmentRisk to EnvironmentSeverity Description

0 Zero effect - No environmental damage. No change in the environment.No financial consequences.

1 Slight effect - Local environmental damage. Within the fence and within systems. Negligible financial consequences.

2 Minor effect - Contamination. Damage sufficiently large to attack the environment. Single exceedance of statutory or prescribed criterion. Single complaint. No permanent effect on the environment.

3 Localised effect - Limited loss of discharges known toxicity. Repeated exceedance of statutory or prescribed limit. Affecting neighbourhood.

4 Major effect - Severe environmental damage. The company is required to take extensive measures to restore contaminated environment to its original state. Extended exceedance of statutory or prescribed limits.

5 Massive effect - Persistent severe environmental damage or severe nuisance extending over a large area. In terms of commercial or recreational use or nature conservancy, a major economic loss for the company. Constant, high exceedance of statutory or prescribed limits.

T-45 10/30/97SIEP - EPS-HE

33

Risk to ReputationRisk to ReputationSeverity Description

0 No impact - No public awareness.

1 Slight impact - Public awareness may exist, but there is no public concern.

2 Limited impact - Some local public concern. Some local media and/or political attention with potentially adverse aspects for company operations.

3 Considerable impact - Regional public concern. Extensive adverse attention in local media. Slight national media and/or local/regional political attention. Adverse stance of local government and/or action groups.

4 National impact - National public concern. Extensive adverse attention in the national media. Regional/national policies with potentially restrictive measures and/or impact on grant of licences. Mobilisation of action group.

5 International impact - International public attention. Extensive adverse

attention in international media. National/international policies with potentially severe impact on access to new areas, grants of licences and/or tax legislation.

T-46 10/30/97SIEP - EPS-HE

Classification Classification findings/recommendationsfindings/recommendations

WeaknessWeakness DefinitionDefinition

SeriousSerious Exposes company to a major extent in terms of Exposes company to a major extent in terms of achievement of corporate HSE objectives or results achievement of corporate HSE objectives or results

HighHigh Though not serious, is essential to be brought to Though not serious, is essential to be brought to attention of senior management team. Includes attention of senior management team. Includes

any any medium weakness which is repeat finding from medium weakness which is repeat finding from previous report.previous report.

MediumMedium Could result in perceptible and undesirable effect Could result in perceptible and undesirable effect on achievement of HSE objectives.on achievement of HSE objectives.

Low Low ** ** No major HSE impact at process level, correction No major HSE impact at process level, correction will assure greater effectiveness/efficiency. will assure greater effectiveness/efficiency.

** Low Recommendations will be kept out of body audit report. ** Low Recommendations will be kept out of body audit report. Will be appended to report as memo to auditee.Will be appended to report as memo to auditee.

T-47 10/30/97SIEP - EPS-HE

Bow-tie ConceptBow-tie Concept

HAZARD

CONSEQUENCES

BARRIERS

Events andCircumstances

Harm to people and damage to assets

or environment

Undesirable event withpotential for harm or damage

Engineering activitiesMaintenance activitiesOperations activities

T-48 10/30/97SIEP - EPS-HE

HSE Risk ManagementHSE Risk ManagementCONTRACTOR

WORKPLACE HAZARD MANAGEMENT

COMPANYSAFETY / HSE CASE

Demonstration (regulator, Demonstration (regulator, shareholdershareholder

Major hazards of Major hazards of installationinstallation

Quantitative risk Quantitative risk assessmentassessment

Safety-critical activitiesSafety-critical activities Latent failuresLatent failures

ExecutionExecution (Minor) hazards at (Minor) hazards at

the workplacethe workplace Qualitative risk Qualitative risk

assessmentassessment Hazardous activitiesHazardous activities Active failuresActive failures

EngineeringEngineeringDesignDesignHardwareHardware

OperationsOperationsPeoplePeople

T-49 10/30/97SIEP - EPS-HE

Contractor HSE What is contracted?What is contracted?

equipment and personnelequipment and personnel specified product or servicespecified product or service

Contractor HSE management systemContractor HSE management system Pre-qualification: can contractor meet all HSE req’s?Pre-qualification: can contractor meet all HSE req’s? Role of contractholder/ single point responsibilityRole of contractholder/ single point responsibility Contract HSE planContract HSE plan

have all hazards been identifiedhave all hazards been identified are controls in place to eliminate/control hazardsare controls in place to eliminate/control hazards are systems in place to verify: audits and inspectionsare systems in place to verify: audits and inspections

T-50 10/30/97SIEP - EPS-HE

Managing HSE RiskManaging HSE Risk

PolicyPolicy

ProcessProcess

TaskTask

interfacedocuments

contractualrequirements

HSE Plan

OUOU ContractorContractor

HSE-MSHSE-MS

HSE CaseHSE Case

ManageManageworkplaceworkplacehazardshazards

HSE-MSHSE-MS

Rig specificRig specificHSE CaseHSE Case

ManageManageworkplaceworkplacehazardshazards

T-51 10/30/97SIEP - EPS-HE

CompanyCompanyPolicy andPolicy and visionvision

processes processes (high level)(high level)

processesprocesses (detailed)(detailed)

task leveltask level

ContractorCommonCommon

HSE-MSHSE-MS

Departmental MSDepartmental MS

HSE-CaseHSE-Caseforfor

Company OperationCompany Operation

Documented systems e.g. for drilling operations

HSE-MSHSE-MS

Workplace hazard management system

HSE-CaseHSE-Caseforfor

EquipmentEquipment

?

ContractContractHSEHSE

RequirementsRequirements

InterfaceInterface Document Document

++Site AddendumSite Addendum

Workplace hazard management system

industry guidanceindustry guidance

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Chapter 1Mgt Summary

Detailed description of adequacy & deficiencies of barriers and controls

to manage the main risks & hazards

Detailed description of adequacy & deficiencies of barriers and controls

to manage the main risks & hazards

Chapter 4 - HSE in Business

Chapter 2Audit admin.

Report - ContentsReport - Contents

HSE-MS elementsLeader ship & Commitment

Policy & Strategic objectives

Organisation & Responsibilities

Resources & competence assurance

HEMP

Planning

Standards, Procs, Doc. Control


Audit

Management review

Summaryof Ten

HSE-MS Elements

Chapter 3 - HSE- MS3.1 Leadership & commitment3.2 Policy & Strategic Objectives3.3 Organisation & Responsibilities3.4 Resources & Competence3.5 HEMP3.6 Planning3.7 Standards, Procedures & DC3.8 Implementation & Monitoring3.9 Audit3.10 Management Review

Description of main risks/hazards and summary of adequacy barriers/controls to manage these

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Year 2000 problemYear 2000 problem

10 to 30 % of all chips affected10 to 30 % of all chips affected Problem as yet ill defined- Crunch in 1999? Problem as yet ill defined- Crunch in 1999?

Everybody wants updates at the same timeEverybody wants updates at the same time Old systems will not be updated- replace in timeOld systems will not be updated- replace in time Processes may stop, Customers and Suppliers may Processes may stop, Customers and Suppliers may

stop.stop. Safeguarding systems may stop unnoticedSafeguarding systems may stop unnoticed In HSE area most systems are hardwired, but F&G In HSE area most systems are hardwired, but F&G

system likely affected system likely affected

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PlanningPlanningStructured and comprehensiveStructured and comprehensive

Is there an effective integrated planning process, Is there an effective integrated planning process, including short, medium and venture life plans?including short, medium and venture life plans?

Do plans align with corporate objectives?Do plans align with corporate objectives? Do plans cover all activities necessary to protect asset Do plans cover all activities necessary to protect asset

integrity?integrity? Is there an annual HSE plan?Is there an annual HSE plan? Emergency response (ER)Emergency response (ER)

Are adequate ER plans and procedures in place within a Are adequate ER plans and procedures in place within a defined hierarchy?defined hierarchy?

Are ER plans and procedures available where required?Are ER plans and procedures available where required? Are ER plans and procedures known and understood and Are ER plans and procedures known and understood and

used?used? Are ER plans and procedures and plans systematically Are ER plans and procedures and plans systematically

reviewed/updated?reviewed/updated?

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Standards, Procedures & Doc. Standards, Procedures & Doc. ControlControl

Are standards clearly defined and appropriate?Are standards clearly defined and appropriate? Are adequate procedures in place within a Are adequate procedures in place within a

defined hierarchy?defined hierarchy? Are procedures appropriate to the operation Are procedures appropriate to the operation

and do they define mandatory aspects?and do they define mandatory aspects? Are procedures available where required?Are procedures available where required? Are procedures known and understood and Are procedures known and understood and

used?used? Are procedures and plans systematically Are procedures and plans systematically

reviewed/updated?reviewed/updated? Is there an effective document control system?Is there an effective document control system?

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Is work implemented in line with plans and procedures?Is work implemented in line with plans and procedures? Do supervisors regularly check the work of their subordinates Do supervisors regularly check the work of their subordinates

and provide remedial advice as needed?and provide remedial advice as needed? Are performance measurement and control systems established?Are performance measurement and control systems established? Are improvement targets set and achieved, are there regular Are improvement targets set and achieved, are there regular

reviews at all levels?reviews at all levels? Is performance measured against SMART targets and are Is performance measured against SMART targets and are

appropriate and timely reports generated?appropriate and timely reports generated? Are control breakdowns investigated and remedied?Are control breakdowns investigated and remedied? Is non-compliance adequately dealt with?Is non-compliance adequately dealt with? Is the monitoring system responsive to developmental change?Is the monitoring system responsive to developmental change? Is there a structured system for HSE communication? Is there a structured system for HSE communication? Is there an adequate system for incident investigation reporting?Is there an adequate system for incident investigation reporting? Are staff (at all levels) HSE motivated?Are staff (at all levels) HSE motivated?

Implementation & MonitoringImplementation & Monitoring

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AuditAudit

A structured programme in placeA structured programme in place

Is there an Internal Audit Committee?Is there an Internal Audit Committee? Is there an integrated audit programme?Is there an integrated audit programme? How is the audit programme managed?How is the audit programme managed? Are audits truly independent?Are audits truly independent? Are the audit resources adequate and competent?Are the audit resources adequate and competent? Are audit recommendations comprehensively Are audit recommendations comprehensively

followed-up?followed-up? Is the follow-up process adequately reported?Is the follow-up process adequately reported? Is there a system for lateral application of audit Is there a system for lateral application of audit

recommendations?recommendations?

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Management Management ReviewReview

Is there a comprehensive HSE review (at least annually)?Is there a comprehensive HSE review (at least annually)? Is there an effective management inspection visit Is there an effective management inspection visit

programme?programme? Is asset integrity periodically assessed by management?Is asset integrity periodically assessed by management? Are audit reports (singly and cumulatively) reviewed by Are audit reports (singly and cumulatively) reviewed by

management?management? Are incident investigations (singly and cumulatively) Are incident investigations (singly and cumulatively)

reviewed by management?reviewed by management? Do managers of an appropriate level lead investigations Do managers of an appropriate level lead investigations

of serious incidents?of serious incidents? What improvements have resulted from the management What improvements have resulted from the management

review process?review process?

Management retain overview and stimulate improvementManagement retain overview and stimulate improvement

Do management have their eyes on (the right) ball?Do management have their eyes on (the right) ball?

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Job reportJob report

ProgrammeProgrammeProceduresProcedures

Work SiteWork Site

StandardsStandardsJob orderJob order ProductionProduction

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DeficienciesDeficiencies

Detail Lateral?

Detail Deficiency

Detail Lateral?

Detail Lateral?

Control Deficiency?

Control Lateral?

Control Lateral?

Policy Deficiency?

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FindingsFindings

Require Verification eg:Require Verification eg:

Interview confirming written procedureInterview confirming written procedure

Observation of activity confirming written Observation of activity confirming written procedureprocedure

MoM confirming interviewMoM confirming interview

Observation of hardware confirming Observation of hardware confirming standardstandard

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QuestionnairesQuestionnaires

Define area to be covered, and divided Define area to be covered, and divided between the team membersbetween the team members

Reduce gaps and oversightsReduce gaps and oversightsReduce overlap and repetitionReduce overlap and repetitionSuggest subjects and detail for new Suggest subjects and detail for new

auditorsauditorsHelp structure interviews and researchHelp structure interviews and researchStimulate imagination to addStimulate imagination to addMust be edited, tailored, NOT a check list Must be edited, tailored, NOT a check list

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Generic QuestionsGeneric QuestionsEquipment AspectsEquipment Aspects

What is it?What is it? What does it do?What does it do? Does it work?Does it work? How do you know?How do you know? How often tested / maintained?How often tested / maintained? Test / maintenance covered by procedure?Test / maintenance covered by procedure? Procedure available? - correct? - followed?Procedure available? - correct? - followed? Is special equipment needed? - available? - used?Is special equipment needed? - available? - used? Test / maintenance checked by supervisor?Test / maintenance checked by supervisor? Results recorded?Results recorded? Reliability calculated?Reliability calculated? Procedure / frequency systemmatically reviewed / Procedure / frequency systemmatically reviewed /

adjusted?adjusted?

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Are job needs defined?Are job needs defined? Are each individual’s skills recorded?Are each individual’s skills recorded? Is there a gap analysis?Is there a gap analysis? Is supplementary training planned?Is supplementary training planned? Has competence been verified?Has competence been verified? By whom? - against what criteria?By whom? - against what criteria? Who checks your work?Who checks your work? What exactly is checked? - how often?What exactly is checked? - how often? Is feedback provided?Is feedback provided? What training has been received?What training has been received?

(also on-the-job)(also on-the-job) What further training is required?What further training is required?

Generic QuestionsGeneric QuestionsCompetence Competence

AspectsAspects

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Generic QuestionsGeneric QuestionsProcedural Procedural

AspectsAspects Are all safety-crital aspects covered by procedures?Are all safety-crital aspects covered by procedures? Are mandatory aspects identified?Are mandatory aspects identified? Is each procedure:Is each procedure:

comprehensive, clear and concise?comprehensive, clear and concise? available where required?available where required? known and used?known and used? authorised by an appropriate person?authorised by an appropriate person? a controlled document?a controlled document? systemmatically reviewed?systemmatically reviewed?

Are staff encouraged to improve procedures?Are staff encouraged to improve procedures? Do procedures satisfy underlying objectives?Do procedures satisfy underlying objectives?

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Interviewing - PreparationInterviewing - Preparation

Review collected documents & dataReview collected documents & dataTeam members select areasTeam members select areas

Edit questionnaire for selected areasEdit questionnaire for selected areas Discuss finalised questionnairesDiscuss finalised questionnaires Identify site intervieweesIdentify site interviewees

Adjust areas selected to give full coverageAdjust areas selected to give full coverageAsk Auditee to schedule interviewsAsk Auditee to schedule interviews

One hour each on interviewee's territoryOne hour each on interviewee's territory

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Interviewing - PairingInterviewing - Pairing

Each auditor paired:Each auditor paired: to witness deficienciesto witness deficiencies to confirm adequacyto confirm adequacy to question the other’s assumptionsto question the other’s assumptions to minimise misunderstandings between to minimise misunderstandings between

interviewer and intervieweeinterviewer and interviewee

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Interviewing - OrganisationInterviewing - Organisation Make an appointmentMake an appointment

on interviewee's territoryon interviewee's territory

Pick relevant areas, highlight key questionsPick relevant areas, highlight key questions Agree timing and stick to itAgree timing and stick to it Make notes on questionnaireMake notes on questionnaire Keep quiet during other's timeKeep quiet during other's time Be on time and don’t overrunBe on time and don’t overrun

Cover all key points or make another appointmentCover all key points or make another appointment

Thank interviewee Thank interviewee Compare overall impressionsCompare overall impressions

The better one is prepared for the interview , the more The better one is prepared for the interview , the more one gets from it ! one gets from it !

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Interviewing - ApproachInterviewing - Approach Minimise stress Minimise stress

2 interviewers only (max one hour)2 interviewers only (max one hour)

Introduce interviewersIntroduce interviewers Outline aims of auditOutline aims of audit

Normal Opco routine supported by Dept.Normal Opco routine supported by Dept. Audit of system - not individualsAudit of system - not individuals Aim to improve future - not witch hunt pastAim to improve future - not witch hunt past Open report and presentationOpen report and presentation Report is view of audit team - not of sourcesReport is view of audit team - not of sources

Ask interviewee’s backgroundAsk interviewee’s background Use open questions and listen to repliesUse open questions and listen to replies Avoid judgments, but do not condoneAvoid judgments, but do not condone Do not argue or attackDo not argue or attack

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Chapter 1Mgt Summary

Chapter 2Audit admin.

Report - ContentsReport - Contents

4.1 Containment4.2 Control of ignition4.3 Safeguarding systems4.4 Operator/process interfaces4.5 Personnel emergency services4.6 Fire hazard management4.7 Workplace practices4.8 Occupational Health4.9 Transport & logistics4.10 Service contractors

HSE-MS elementsLeader ship & Commitment

Policy & Strategic objectives

Organisation & Responsibilities

Resources & competence assurance

HEMP

Planning

Standards, Procs, Doc. Control


Audit

Management review

Summaryof Ten

HSE-MS Elements

Chapter 3 - HSE- MS3.1 Leadership & commitment3.2 Policy & Strategic Objectives3.3 Organisation & Responsibilities3.4 Resources & Competence3.5 HEMP3.6 Planning3.7 Standards, Procedures & DC3.8 Implementation & Monitoring3.9 Audit3.10 Management Review

Chapter 4 - HSE in Business

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ReportReportObjectivesObjectives

Opinion onadequacy of

control framework

Issues, effects, causes identified

Practicablerecommendations corrective action

For auditee(s) and for managementFor auditee(s) and for management

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Team Author

Team Author

Team Author

1stDraft

2nd2ndDraftDraft

Team Discussion

Team Team Team Critic Critic

Auditee Auditee

Report

Report - Text HandlingReport - Text Handling

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Report - StyleReport - Style

Standard index and formatTeam editor solely responsible for EnglishMinimise recommendations "to study"Factual rather than opinion

IS/IS NOT rather than TEAM CONSIDER if necessary verify further

No time for perfection not "agreed" by auditee not binding on auditee

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Report - Text DraftingReport - Text Drafting

Outline section formatOutline section format Describe the situation Describe the situation

as foundas found Comment on good as Comment on good as

well as badwell as bad Discuss improvementDiscuss improvement Action: “Improve....”Action: “Improve....”

All text to all teamAll text to all team Check text with severest Check text with severest

criticcritic Agree facts and Agree facts and

feasibilityfeasibility Welcome supportWelcome support Mark up changes for Mark up changes for

later inclusionlater inclusion

Keep it short, punchy and to-the-pointKeep it short, punchy and to-the-pointDo not attempt to duplicate process design manuals or give a Do not attempt to duplicate process design manuals or give a process description aimed at the inexperienced report readers process description aimed at the inexperienced report readers

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Write everything in style “Normal”.Write everything in style “Normal”. Don’t attempt to format your text i.e. do not put TABS and CRs in Don’t attempt to format your text i.e. do not put TABS and CRs in

an attempt to “make it look nice”.an attempt to “make it look nice”. Use document “EMPTY.DOC” as at emplate for every new report Use document “EMPTY.DOC” as at emplate for every new report

section. section. Make a separate file for every new section you have written or have Make a separate file for every new section you have written or have

to write.to write. Give meaningful document name e.g. 419mm.docGive meaningful document name e.g. 419mm.doc Put name and date in document footerPut name and date in document footer

Use your spelling checker (UK English not US)Use your spelling checker (UK English not US) Use your team mate(s) to read your draftsUse your team mate(s) to read your drafts Read AUDITKIT documentsRead AUDITKIT documents

STYLE.DOC and FORMAT.DOCSTYLE.DOC and FORMAT.DOC

Report - Text DraftingReport - Text DraftingTips and hints:Tips and hints:

Remember: Some 30% of what you have written may be modified Remember: Some 30% of what you have written may be modified or removed during the team editing sessions. Don’t waste or removed during the team editing sessions. Don’t waste your/our time. your/our time.

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Report - ActionsReport - Actions Stand Alone, Clear & ConciseStand Alone, Clear & Concise

Definitive when read in isolationDefinitive when read in isolation Not longer than three linesNot longer than three lines

SMAR(T)SMAR(T) SpecificSpecific -- as specific as expertise allows and as specific as expertise allows and

sufficiently specific to ensure sufficiently specific to ensure that that deficiency will indeed be deficiency will indeed be remediedremedied

MeasurableMeasurable -- must be able to define completionmust be able to define completion AchievableAchievable - - must be possiblemust be possible RealisticRealistic -- should be fit-for-purposeshould be fit-for-purpose Time-basedTime-based - - timeframe not included in audit timeframe not included in audit

report - to be decided by Auditeereport - to be decided by Auditee MotivationalMotivational

Start with an active verb - verify, issue, revise, replace, Start with an active verb - verify, issue, revise, replace, remove, provide, install, define or appointremove, provide, install, define or appoint

Avoid - consider, coordinate, ensure, initiate, monitor, Avoid - consider, coordinate, ensure, initiate, monitor, supervisesupervise

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Classification of actionsClassification of actions

Four step activityFour step activity (refer to classify.doc)(refer to classify.doc)

1.1. Determine the category (People, Assets, Environment, Determine the category (People, Assets, Environment, Reputation).Reputation).

2. Determine the severity level (refer to standard 2. Determine the severity level (refer to standard definitions).definitions).

3. Determine the context ie position A,B, C, D, E.3. Determine the context ie position A,B, C, D, E.

4. Code/classify the actions eg:4. Code/classify the actions eg: (P)H = (P)H = People HighPeople High

(A)M = (A)M = Assets MediumAssets Medium

5. Classify Chapter 3 and 4 actions as per HSE element5. Classify Chapter 3 and 4 actions as per HSE element

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Report Report exampleexample

4.1.14.1.1 Wells, flowlines and manifolds (incl. risers)Wells, flowlines and manifolds (incl. risers)Dynamic risers are of Wellstream design. The production lines have PVDF pressure Dynamic risers are of Wellstream design. The production lines have PVDF pressure barriers, a material that has shown several failures recently. Testing of a new end fitting barriers, a material that has shown several failures recently. Testing of a new end fitting construction to investigate the PVDF problem has been completed to the satisfaction of construction to investigate the PVDF problem has been completed to the satisfaction of XXXX. Service life is expected to be ten years and the failure mechanism is the XXXX. Service life is expected to be ten years and the failure mechanism is the development of a small leak which can be detected in the turret. The expectation, based on development of a small leak which can be detected in the turret. The expectation, based on model and laboratory tests, is that this leak will develop to a full blown failure over a period model and laboratory tests, is that this leak will develop to a full blown failure over a period of several months. In this case, the full flowline contents will flow in an uncontrolled way into of several months. In this case, the full flowline contents will flow in an uncontrolled way into or in the vicinity of, the turret.or in the vicinity of, the turret.A contingency plan should be developed, as little experience with this failure mode exists.A contingency plan should be developed, as little experience with this failure mode exists.

Action (R)S 4.1.1 (a)Action (R)S 4.1.1 (a) (6) Develop a riser failure contingency plan.(6) Develop a riser failure contingency plan.

Riser leak detection equipment (annulus flow metering) will be installed. This equipment is Riser leak detection equipment (annulus flow metering) will be installed. This equipment is safety critical and its effectiveness should be ensured at all times. At present, it is not safety critical and its effectiveness should be ensured at all times. At present, it is not covered in the Safety Case. A maintenance and inspection programme should be covered in the Safety Case. A maintenance and inspection programme should be developed, reflecting its importance.developed, reflecting its importance.

Action (E)H 4.1.1(b) Action (E)H 4.1.1(b) (5) Include Riser leak risk and detection system in the (5) Include Riser leak risk and detection system in the Safety Safety Case.Case.

Action (A)H 4.1.1(c) Action (A)H 4.1.1(c) (7) Develop a maintenance programme for riser leak (7) Develop a maintenance programme for riser leak detection equipment. detection equipment.

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3.8.43.8.4 Incident investigation reportingIncident investigation reportingThe standard of incident investigation has improved to acceptable standards during the The standard of incident investigation has improved to acceptable standards during the past two months. There remains however a number of areas related to Incident past two months. There remains however a number of areas related to Incident investigation reporting which give cause for concern. There is no formal agreed investigation reporting which give cause for concern. There is no formal agreed procedure for the prompt communication of incidents between X, Y and Z procedure for the prompt communication of incidents between X, Y and Z representatives. There have been occasions where incident occurrence was representatives. There have been occasions where incident occurrence was communicated via third parties e.g. the recent turret fire. communicated via third parties e.g. the recent turret fire.

Action (P)H 3.8.4(a)Action (P)H 3.8.4(a) (8) (8) Enforce contractual terms for incident notification.Enforce contractual terms for incident notification.

Severity Rating (SR) and the subsequent level of management involvement is a Severity Rating (SR) and the subsequent level of management involvement is a problem area. Contractor management are reluctant to participate in formal problem area. Contractor management are reluctant to participate in formal investigations and try to reduce the SR. Higher motivation is required.investigations and try to reduce the SR. Higher motivation is required.

Action (P)H 3.8.4(b)Action (P)H 3.8.4(b) (8) Adhere to procedures for establishing incident (8) Adhere to procedures for establishing incident SR; SR; improve improve level of contractor management level of contractor management participation in participation in incident investigations.incident investigations.

There is no evidence to suggest that near miss reporting is practiced at the yard or is There is no evidence to suggest that near miss reporting is practiced at the yard or is promoted, supported or valued by the SMT. Important learning values are missed. promoted, supported or valued by the SMT. Important learning values are missed.

Action (P)M 3.8.4(c)Action (P)M 3.8.4(c) (8) Implement a near miss reporting system.(8) Implement a near miss reporting system.

Report exampleReport example

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““If engineers and users require MC If engineers and users require MC information, they should access the CAIRS information, they should access the CAIRS system. However if a hard copy needs to be system. However if a hard copy needs to be sighted, usually a copy is available at either sighted, usually a copy is available at either the Plant or Warehouse. Only as a last the Plant or Warehouse. Only as a last resort should copies be requested from resort should copies be requested from Information Services”.Information Services”.

Identify potential users and train them in the Identify potential users and train them in the use of CAIRS.use of CAIRS.

Bad Action ItemBad Action Item

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““As there is a potential for a legal liability As there is a potential for a legal liability situation to develop, the Corporate policy and situation to develop, the Corporate policy and guidelines (proposed) should address this guidelines (proposed) should address this issue. Staff should be made aware of the issue. Staff should be made aware of the potential for legal liability and where potential for legal liability and where responsibilities lie”.responsibilities lie”.

11 Include legal liabilities in proposed Include legal liabilities in proposed Corporate policy and guidelines.Corporate policy and guidelines.

22 Develop course and train XYZ staff in Develop course and train XYZ staff in legal liability.legal liability.


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““Management endorsement be obtained to Management endorsement be obtained to conduct a review to establish what impact conduct a review to establish what impact there has been on safety and quality there has been on safety and quality standards of not having a QA/QC group standards of not having a QA/QC group within the Operations Division. Also to within the Operations Division. Also to review whether there is a need for such a review whether there is a need for such a group and how QA/QC requirements for group and how QA/QC requirements for Operations Division should be addressed in Operations Division should be addressed in future”.future”.

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FREQUENTFREQUENT When I rememberWhen I remember

REGULARREGULAR When the Boss remembersWhen the Boss remembers

AD HOCAD HOC When I’m forced to.When I’m forced to.

PERIODICPERIODIC Once in a Blue MoonOnce in a Blue Moon

ENSUREENSURE An object dressed up as a taskAn object dressed up as a task

ENSURE COMPLIANCEENSURE COMPLIANCE An object dressed up as a macho taskAn object dressed up as a macho task

MONITORMONITOR I’ll watch but I’m not responsible ...I’ll watch but I’m not responsible ...

unless it works!unless it works!

SHELL-SPEAK - SHELL-SPEAK - 11

SIPM - EPO/65SIPM - EPO/65

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SHELL-SPEAK - SHELL-SPEAK - 22 CO-ORDINATECO-ORDINATE

They get the work, I get the creditThey get the work, I get the credit

SUPERVISESUPERVISE As with Co-ordinate, but I’m bigger than themAs with Co-ordinate, but I’m bigger than them

DEVELOP AWARENESSDEVELOP AWARENESS It may happen anyway; if it does I get the It may happen anyway; if it does I get the

creditcredit

ACTIVELY ENCOURAGEACTIVELY ENCOURAGE I’ll clap my hands; it shows I’m awake.I’ll clap my hands; it shows I’m awake.

AUTHORIZEAUTHORIZE Where’s my rubber stamp?Where’s my rubber stamp?

SUPPORTSUPPORT I’ll read it before I stamp it.I’ll read it before I stamp it.

SIPM - EPO/65SIPM - EPO/65

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INITIATE, ESTABLISH, etc.INITIATE, ESTABLISH, etc. I tell them to do it .I tell them to do it .

ALLALL SOMESOME

KEY PERSONNELKEY PERSONNEL Whoever is easily spared.Whoever is easily spared. Whoever is in at the time.Whoever is in at the time.

APPROPRIATEAPPROPRIATE Most convenientMost convenient

RELEVANTRELEVANT At least I can see the connectionAt least I can see the connection

ARRANGEARRANGE I’ll have my secretary do I’ll have my secretary do

something.something.

SHELL-SPEAK - SHELL-SPEAK - 33

SIPM - EPO/65

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Team Editing - ObjectivesTeam Editing - Objectives

ii Agree & confirm documentation of factsAgree & confirm documentation of facts

iiii Build consensus and common viewBuild consensus and common view(total report supported by all team members)(total report supported by all team members)

iiiiii Obtain ownership by all team membersObtain ownership by all team members

iviv Ensure clarity and concisenessEnsure clarity and conciseness

vv Eliminate irrelevant detail and repetitionEliminate irrelevant detail and repetition

vivi Unify style and correct grammarUnify style and correct grammar(also define audit-specific global checks)(also define audit-specific global checks)

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Team Editing - ProcessTeam Editing - Process One sub-section at a time:One sub-section at a time:

ii Is text understandable - can it be clarified?Is text understandable - can it be clarified?

iiii Does it demonstrate sampling of the subject area?Does it demonstrate sampling of the subject area?

iiiiii Are findings factually correct?Are findings factually correct?

iviv Are there any sensitivities?Are there any sensitivities?

vv Do all findings have related actions?Do all findings have related actions?

vivi Are all actions preceded by findings?Are all actions preceded by findings?

viivii Are actions SMAR(T)?Are actions SMAR(T)?

viiiviii Minimise additional sub-headingsMinimise additional sub-headings

ixix Ungroup actionsUngroup actions

xx Unify style and correct grammarUnify style and correct grammar

60 -90 minute sessions60 -90 minute sessions Anyone may call for time-outAnyone may call for time-out

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Audit Report ScheduleAudit Report Schedule

Audit DaysAudit Days

100 %100 %

50 %50 %

10 %10 %

Report % Report % CompleteComplete

11 66 1313 1818

The HagueThe Hague

TeamTeameditingediting

&&summarysummary


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Finalisation of ReportFinalisation of ReportPlug gapsPlug gapsGather all outstanding dataGather all outstanding dataCheck classified actionsCheck classified actionsCollate appendices:Collate appendices:

Summary sheetSummary sheet Glossary of abbreviationsGlossary of abbreviations Classified action listClassified action list Correspondence on TORCorrespondence on TOR

Global checksGlobal checks spelling, references, etc.spelling, references, etc.

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Global ChecksGlobal Checks

Spell check:Spell check: correct normal spellingcorrect normal spelling pick-up abbreviations in custom dictionarypick-up abbreviations in custom dictionary ensure consistency of abbreviationsensure consistency of abbreviations ensure consistent spelling of place namesensure consistent spelling of place names

Miscellaneous:Miscellaneous: HH22S, COS, CO22, quote marks, apostrophies, spaces, , quote marks, apostrophies, spaces,

bold, italic etc.bold, italic etc. Other audit-specific (defined during team edit)Other audit-specific (defined during team edit)

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Completion of AuditCompletion of Audit Give team-edited draft report to AuditeeGive team-edited draft report to Auditee Assessment and audit opinionAssessment and audit opinion Draft Main FindingsDraft Main Findings Agree wording of Main Findings with AuditeeAgree wording of Main Findings with Auditee Incorporate feedback agreed with AuditeeIncorporate feedback agreed with Auditee Dry-run presentation within teamDry-run presentation within team Make final presentation to managementMake final presentation to management Finalise report editingFinalise report editing Present Present final draftfinal draft report to Auditee report to Auditee

(formal report to be issued within one month)(formal report to be issued within one month)

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Audit opinionAudit opinion

Management ReviewManagement Review

Leadership and CommitmentLeadership and Commitment

Policy and Strategic ObjectivesPolicy and Strategic Objectives

Organisation and ResponsibilitiesOrganisation and Responsibilities

Resources and Competence AssuranceResources and Competence Assurance

HEMPHEMP

PlanningPlanning

Standards, Procedures & Doc ControlStandards, Procedures & Doc Control

Implementation and MonitoringImplementation and Monitoring

AuditAudit

Overall Opinion: SatisfactorySatisfactory / / UnsatisfactoryUnsatisfactory

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HSE-MS Element AssessmentHSE-MS Element Assessment

A high standard of control requiring no A high standard of control requiring no additional management attention.additional management attention.

A high enough standard of control for A high enough standard of control for improvements to be handled by the normal improvements to be handled by the normal management involvement.management involvement.

Essential controls are in place, but the Essential controls are in place, but the deficiencies require focused management deficiencies require focused management intervention.intervention.

Essential controls are missing or ineffective.Essential controls are missing or ineffective.Prompt management action is needed.Prompt management action is needed.

++++

++

--

- -- -

T-94 10/30/97SIEP - EPS-HE

Audit OpinionAudit Opinion

Although some control weaknesses were Although some control weaknesses were identified which require identified which require timelytimely corrective corrective actions, such weaknesses, actions, such weaknesses, either individuallyeither individually or taken or taken in the aggregatein the aggregate, do not significantly , do not significantly impair the overall controls of the unit of the impair the overall controls of the unit of the organisationorganisation

SatisfactorySatisfactory

T-95 10/30/97SIEP - EPS-HE

Audit OpinionAudit Opinion

Controls lack essential elements or Controls lack essential elements or sufficient attention by the unit. The sufficient attention by the unit. The weaknesses identified, weaknesses identified, individuallyindividually or or in the in the aggregateaggregate, significantly impair important , significantly impair important controls of the unit to the extent that controls of the unit to the extent that promptprompt corrective measures by corrective measures by management are necessary to bring such management are necessary to bring such controls to a satisfactory levelcontrols to a satisfactory level

UnsatisfactoryUnsatisfactory

T-96 10/30/97SIEP - EPS-HE

Linking Audit to Linking Audit to Business ControlsBusiness Controls

Policy & Strategic Objectives

Organise & Responsibilities

Resources & Comp Assurance

HEMP

Planning

Standards, Procs & Doc Contr

Implement & Communicate

Audit

Management Review

+

+

+

-

- -

- -

-

+

+

-

+

- -

-

-

+

+

- -

-

-

+

+

+

Policy Org-anisation

MgmentReview

Super-vision

Pro-cedures

Leadership & Commitment


T-97 10/30/97SIEP - EPS-HE

Classified recommendations per HSE-MS elementClassified recommendations per HSE-MS element

No. of recommendations

0 2 4 6 8 10 12 14 16 18

Leadership & Commitment

Policy & Strat. Obj

Org. & Resp

Resources & Comp

HEMP

Planning

Stand, Procs & D/C

Implement & Monitor

Audit:

Management Review

Low

Medium

High

Serious

Classification






as needed

T-98 10/30/97SIEP - EPS-HE

Classified recommendations per risk categoryClassified recommendations per risk category

no. of recommendations

0 5 10 15 20 25 30 35

People

Assets

Environment

Reputation

Low

Medium

High

Serious

Classification






as needed

T-99 10/30/97SIEP - EPS-HE

ScheduleSchedule

X

X

X

Week 2

1 2 3 4 5 6 7 8 9 10 1112

Opening Presentation

Briefing by NAM

"Crash" course in auditing

Assign tasks

Study material

Develop quests & interviews

Site visits

Interviews & facts verification

Discuss findings with team

Discuss findings with auditee

Report writing & verification

Audit assessment

Editing / classify action items

Final draft / presentation

X

X

X

X

X

X

X

XX

X

13 14 15 16 17

XX XX XX

X XXX

X

Week 1 Week 3

X

18 19

X

X

Team review prelim draft

X

X

X

X

Example only.Team leader to modify as needed.

T-100 10/30/97SIEP - EPS-HE

Task distributionTask distribution Management introductionManagement introduction Team LeaderTeam Leader Team introductionTeam introduction Team LeaderTeam Leader Team preparation/planningTeam preparation/planning Audit TeamAudit Team Site visitsSite visits Audit TeamAudit Team

InterviewsInterviews site supervision/workforcesite supervision/workforce Audit TeamAudit Team management interviewsmanagement interviews Audit TeamAudit Team

Preparation 1st draftPreparation 1st draft Audit Team Audit Team Review/verification 1st draftReview/verification 1st draft Audit TeamAudit Team Preparation 2nd draftPreparation 2nd draft Audit TeamAudit Team Team editingTeam editing Audit TeamAudit Team Compile reportCompile report Team LeaderTeam Leader

Presentation of findingsPresentation of findings Principal AuditeePrincipal Auditee Team LeaderTeam Leader Local supervision/managementLocal supervision/management Team LeaderTeam Leader Senior ManagementSenior Management Team LeaderTeam Leader

T-101 10/30/97SIEP - EPS-HE

Team Leader Team Leader rolerole

Identifyaudit

objectives

Focus audit thrust

Minimalrisk area

Minimalrisk area

Minimalrisk

Minimalrisk

Significantrisk area

AvoidAvoidimmaterialimmaterial


EliminateEliminate the “waffle” the “waffle”


AvoidAvoid significant significant omissions omissions

AvoidAvoidimmaterialimmaterial

HSE-MS Audit Team Briefing Sessions

Documents

Transcript of HSE-MS Audit Team Briefing Sessions