Applied Operational Excellence for the Oil, Gas, and Process Industries

Applied Operational Excellence for the Oil, Gas, and Process Industries

1st Edition - August 13, 2015

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  • Authors: Dennis P. Nolan, Eric Anderson
  • Paperback ISBN: 9780128027882
  • eBook ISBN: 9780128028025

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Applied Operational Excellence for the Oil, Gas, and Process Industries offers a straightforward practical guide for oil and gas companies to understand the comparisons and contrasts between various types of safety management processes, including the standardized structure and ongoing extended benefits that operational excellence can bring to an oil and gas company. The goal of achieving operational excellence is to reduce costs, improve productivity, and enhance efficiency—in other words, operational excellence contributes to the bottom line. Following along with pre-built success in the process industries, many companies in the oil and gas industry appear to use a subset form of operational excellence, yet many are unsure or unaware of all the safety system components that will truly benefit the company holistically, and current literature is only applicable to the process and manufacturing industries. Packed with clear objectives and tools, structure guidelines specific to oil and gas, and guidance for how to imbed your existing safety program under the operational excellence umbrella known as "One-Step Merger," this book will help you establish an overall safety culture vision and challenge your organization to achieve higher levels of safety management and overall company value.

Key Features

  • Explores how to solidify a foundational operational excellence program applicable for your oil and gas company
  • Clarifies the differences and benefits among various programs under operational excellence (OE), such as SHE (safety, health, and environment), PSM (process safety management), and SMS (safety management system)
  • Explains how to audit and consistently assess how oil and gas OE systems are planned, implemented, and managed, with explanations on cost and time impacts as well as administrative protocols
  • Includes a glossary, acronym appendix, and additional references for further reading


(Primary): Oil and Gas Safety Managers, Oil and Gas Plant Managers, Process Plant Managers and Engineers, Safety Engineers and Managers, Risk Consultants and Advisors, (Secondary): Educational Organizations, Universities and Colleges, Specialized Training Courses for Process Engineering, Risk Analysis, Safety Management/Engineering, 3rd Party Auditors and Inspectors, and Regulatory Organizations

Table of Contents

    • Dedication
    • About the Authors
    • Preface
    • Introduction
    • 1. What Is Operational Excellence (OE)?
      • Why OE and What’s It All About?
      • It’s as Much About People, as the Bottom Line
      • The Stakes Have Never Been Higher
      • The Legal Process–National Regulatory Regimes and Regulatory Frameworks
      • REACH
      • Social Safety Nets
      • Labor Relations
      • Responding to or Simply Staying Ahead of Shareholder Activism
      • BP Shareholder Losses
      • Why Corporate Governance Matters to Companies
      • What OE Is and Is Not
      • How Do Major Oil/Gas/Petrochemical Companies Describe the Basis for Their Operational Excellence Management Systems?
      • The OMS Framework
    • 2. Safety Management
      • Ethics and Safety Management
      • From MBA Oath to Successful OE Executive Management Leadership
      • Ethical OE Leadership
    • 3. Interrelationships between SHE (PSM/SMS) and OE Systems
      • The Characteristics of Management Systems
    • 4. Benefits of Integrated PSM/SMS/SHE and OE Programs
      • Integrating Process Safety Management–The Purpose Behind PSM
      • Making the Process Industry Safer Through PSM
      • Exceptions
      • Process Safety Information Hazards of the Chemicals Used in the Process
      • Technology of the Process
      • Equipment in the Process
      • Employee Involvement
      • Process Hazard Analysis
      • Operating Procedures
      • Employee Training
      • Contractors
      • Pre-Startup Safety Review (PSSR)
      • Mechanical Integrity of Equipment
      • Process Defenses
      • Written Procedures
      • Inspection and Testing
      • Quality Assurance
      • Non-routine Work Authorizations
      • Managing Change
      • Incident Investigation
      • Emergency Preparedness
      • Compliance Audits
      • Better Management
    • 5. OE Objectives and Structure
      • Processes and Practices
      • Achieving a World-Class Organizational Safety Culture
    • 6. OE Typical Elements
      • Typical Operational Excellence Elements
      • Risk Management
      • Pre-startup Safety Reviews
      • Product Stewardship
      • Compliance Assurance
      • Emergency Management (Response and Incident Investigation)
      • External Services
      • Social Responsibility
      • Innovation, Learning and Continuous Improvement
    • 7. OE Key Processes and Safety, Health and Environment (SHE) Embedding
      • The Process Management Road Map
      • Leadership, Commitment and Accountability
      • Risk Assessment and Management
    • 8. OE/SHE Key Performance Indicators (KPIs)
      • Selecting Appropriate Safety KPIs
      • Leading and Lagging Safety KPIs
      • Principles of KPI Measurements
      • KPI Targets
      • Tiered KPIs
      • Tier Level Descriptions
      • Industry Practices on KPIs
      • Managing KPIs for Success
      • Specific Activities for Developing Successful Process Safety KPIs
    • 9. OE Governance and Implementation
      • Cost and Time Impacts of Adopting an OE/SHE Program
      • W. Edwards Deming
      • Governance
      • Implementation
      • Key Self-Check Questions for the Senior Manager
      • Essential Elements of Corporate Governance for Safety
      • Suggestions for Implementing Change in an Organization
    • 10. Performing an OE/SHE Gap Analysis
      • Typical Performance Improvement Cycle
      • Prioritize Action Items and Initiatives
      • SWOT Analysis
    • 11. Assessments and Auditing
      • Audit Checklists
      • Audit Planning
      • Audit Fieldwork
      • Audit Review
      • Audit Reporting
      • Inspections—Advantages and Disadvantages
      • Assessments—Advantages and Disadvantages
      • What’s the Answer—Inspections or Assessments?
    • Acronyms
    • Definitions
    • Bibliography
    • Index

Product details

  • No. of pages: 240
  • Language: English
  • Copyright: © Gulf Professional Publishing 2015
  • Published: August 13, 2015
  • Imprint: Gulf Professional Publishing
  • Paperback ISBN: 9780128027882
  • eBook ISBN: 9780128028025

About the Authors

Dennis P. Nolan

Dr. Dennis P. Nolan has had a long career devoted to risk engineering, fire protection engineering, loss prevention engineering and systems safety engineering. He holds a Doctor of Philosophy degree in Business Administration from Berne University, Master of Science degree in Systems Management from Florida Institute of Technology and a Bachelor of Science Degree in Fire Protection Engineering from the University of Maryland. He is a U.S. registered professional engineer in fire protection engineering in the state of California.He is currently on the Executive Management staff of Saudi Aramco, located in Dhahran, Saudi Arabia, as a Loss Prevention Consultant/Chief Fire Prevention Engineer. He covers some of the largest oil and gas facilities in the world. As part of his career, he has examined oil production, refining, and marketing facilities under severe conditions and in various unique worldwide locations, including Africa, Asia, Europe, the Middle East, Russia, and North and South America. His activity in the aerospace field has included engineering support for the NASA Space Shuttle launch facilities at Kennedy Space Center (and for those undertaken at Vandenburg Air Force Base, California) and “classified” national defense systems. Dr. Nolan has received numerous safety awards and is a member of the American Society of Safety Engineers, He is the author of many technical papers and professional articles in various international fire safety publications. He has written at least four books, several published by Elsevier.

Affiliations and Expertise

Loss Prevention Consultant and Chief Fire Prevention Engineer, Saudi Aramco

Eric Anderson

Eric T. Anderson has over 28 years of experience in oil, gas, and petrochemical expertise within fire, health, safety, environment, and security support function. Eric recently supports operational excellence adoption programs for current and past employers. Eric earned his Bachelor's at the University of Wisconsin and a Master's at the University of Minnesota, both in Safety/Industrial Hygiene with post graduate studies focusing on Finance Management at the Stanford Graduate School of Business.

Affiliations and Expertise

, Consultant with expertise within fire, health, safety, environment, and security support function

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