Global HSE Conference | Sept 26 - 27 2013 | New Delhi, India

1. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
Improving Health,
Safety and
Environment
Performance
Analysis
Mark Weitner
IBM
Global Business Services
HSSE Center of Competence

2. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
The Transformation Of HSE
HSE Management Is At Another Major Transformation Point
Compliance Driven Command &
Control Model:
• Regulations
• Standards
• Corporate Policies
Stakeholder Market-Based
Model:
• Reduced Operational Risk
• Enhanced Corporate Brand
• Increased Shareholder Value
Asset Intensive Companies Are Moving
From Tactical Compliance Reporting to
Sustainable Operational Excellence

3. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
Reducing Operational Risk, Enhanced Corporate Brand
and Increased Shareholder Value
The Transformation Of HSE

4. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
Occupational Health
and Safety
Administration
PSM Regulation OSHA
29 CFR 1910.119
1. Employee
Participation
8. Mechanical Integrity
2. Process Safety
Information (PSI)
9. Hot Work Permits
3. Process Hazards
Analysis (PHA)
10. Management of
Change (MOC)
4. Operating
Procedures
11. Incident Investigation
5. Training
12. Emergency Planning
and Response
6. Contractors 13. Compliance Audits
7. Pre-Startup Safety
Review (PSSR)
14. Trade Secrets
Process Safety Management Best Represent The
Complexities of HSE Management
The Foundation of All
Process Safety
Management Programs
Operational Challenges In This Transformation

5. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
American Petroleum Institute (API)
1. Safety and Environmental Information
2. Hazard Analysis
3. Management of Change (MoC)
4. Operating Principles
5. Safe Work Practices
6. Training
7. Quality Assurance/Mechanical Integrity
8. Pre-Startup Review
9. Emergency Response and Control
10. Incident Investigation
11. SEMP Element Audit
12. Documentation and Recordkeeping
Upstream, Downstream & Manufacturing Standards
Operational Challenges In This Transformation
1. Employee
Participation
8. Mechanical Integrity
2. Process Safety
Information (PSI)
9. Hot Work Permits
3. Process Hazards
Analysis (PHA)
10. Management of
Change (MoC)
4. Operating
Procedures
11. Incident Investigation
5. Training
12. Emergency Planning
and Response
6. Contractors 13. Compliance Audits
7. Pre-Startup Safety
Review (PSSR)
14. Trade Secrets
American Institute for Chemical Engineers
(AIChE) Center for Chemical Process Safety (CCPS)

6. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
When Operations, Engineering & HSE Find Success
Business Benefits When Operational Challenges Are Met
Source: Center for Chemical Process Safety (CCPS), American Institute of Chemical Engineers (AIChE)
3% Reduction in
Production Costs
1% Reduction in
Capital Budgets
Reduction in
Maintenance Costs5%
Increase in
Productivity5%
Reduction in Insurance Costs
20%

7. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
The Challenges in Managing EHS Today
 Many elements to consider
– each is often complex itself
 A large and diverse amount
of information in different
forms and formats
 Information comes from
many different sources
 Different parts of the
organization “own” this
information
 Systems generating this
information often times have
other primary purposesAlignment of Systems, Processes and
Organizational Elements Are Challenging
Enterprise Challenges In This Transformation

8. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
A Smarter Approach To HSE
Optimizing Safe and Reliable Operations
The use of predictive analytics is now emerging as an important
technique to identify organizational, operational and safety risk factors
and are becoming core to their performance management programs
The Silos of Information,
Policy, Execution and
Management
Reactive
Proactive
Predictive
The Silos of Information,
Policy, Execution and
Management
Reactive
Proactive
Predictive
Respond to Individual
Risk Or Threat
Search for
“Needle in a Haystack”
Separate Siloed
Management Systems
Safety as a Required
Cost factor
Reactive: Focus on
Damage Control
Managed: Focus on
Prevention
True integrated
Solution Architectures
Decision Support
Convergence of HSE
and IT
Business Intelligence as Driver
in Corporate Value Metrics
Predictive: Focus on
Proactive Recognition
Pattern Analytics
Smarter Analytics
On Going Integrated
Monitoring
Pre-Emptive Management

9. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
The Story Of Predictive Analytics
 Analyze current transactional and historical facts to make
predictions about future events
 The ability to model good (or safe) operations learned from
historical experience and then apply those patterns to avoid future
events
 A natural progression of increasingly sophisticated tools available
in safety management and has become more common in the
chemicals and petroleum industry in such areas as predictive
maintenance
What Its All About…
Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study. Copyright ©
Massachusetts Institute of Technology 2010.

10. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
Gaining Insights From Multiple Data Sources
Data Drives Predictive HSE Analytics
The Goal: Draw Reliable Conclusions and Acting Accordingly

11. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
Predictive Analytics Requires A Well Laid Foundation
Components of a Well Managed HSE Analytics Process

12. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
The Challenges In Analytics Adoption
Source: Analytics: The New Path to Value, a joint MIT Sloan Management Review and IBM Institute of Business Value study.
Copyright © Massachusetts Institute of Technology 2010.
The Issues Are Organizational, Not Data or Financial (Cost)

13. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
The Road To HSE Analytics
1. Begin With an Organizational
Maturity Assessment
2. Perform an Information
Strategy Readiness Assessment
3. Pick Your Spot
4. Prove the Value
5. Roll it Out Over Time
Five Key Enablers for Exploiting the Shift from
Reactive to Managed to Predictive Behavior
Standardization of Information, Processes and Procedures

14. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
What The Analysts Are Saying
1. Companies will realign security investments to protect their extended B2B networks
2. CIOs will increase the visibility and responsibility for technical data management
3. CIOs will establish analytics competency centers focused on skills and business alignment
4. Unconventional resources will require companies to revisit wireless and mobility strategies
5. The shift from Health, Safety and Environmental compliance
to prevention will require more sophisticated analytics
6. Talent shortages will require CIOs to rethink sourcing strategies and take on social
business
7. Capital project management teams will need better analytics and standardized frameworks
8. Production optimization will drive expanded adoption of integrated operations
9. Upgrades to Electronic Trading & Risk Management applications will be driven by
changing compliance and logistics requirements
10. Cloud services will not reach critical mass with oil & gas
companies until 2015
IDC Top 10 Predictions for 2013

15. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
HSE Success Requires More Than Analytics
Social Business Programs Drive HSE Strategy Success
And Cultural Adoption
SPE-167429-MS
Transforming Health, Safety and Environment Strategy and Culture Using
Social Business
M. Weitner, and D. Hatler, IBM Corporation
Copyright 2013, Society of Petroleum Engineers
This paper was prepared for presentation at the SPE Middle East Intelligent Energy Conference and Exhibiiton held in Dubai, UAE, 28–30 October 2013.
This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been
reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect any position of the Society of Petroleum Engineers, its
officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written consent of the Society of Petroleum Engineers is prohibited. Permission to
reproduce in print is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of SPE copyright.
Wednesday, 30 October 2013, 11:15–12:45
SPE Intelligent Energy International
Dubai, UAE
 A smarter approach to the people-centric processes of an
organization
 Encompasses organization AND business processes
 Top down and bottom up engagement within an organization as
well as relevant external influences
• Leadership
• Communication
• Engagement
• Collaboration

16. Technical Session # 3A
Topic : Improving Health, Safety and Environment Performance Analysis
DISCUSSION
Mark Weitner
IBM Global Business Services
Center of Competence
Mark.Weitner@us.ibm.com - +1.203.409.3688
Improving Health, Safety and Environment Performance Analysis