Professional Documents
Culture Documents
Report in brief
Improving reliability
Avoiding complacency
KPIs are a constant reminder of the need
to learn from near misses and less severe
incidents and their need to continuously
improve process safety.
Communicating performance
KPIs provide reassuring evidence of
management focus, transparency and
progress all of which can support
safety culture and improved behaviours.
on
lati
ion
t
n
e
rs
Leading indicators
maintain barrier strength, i.e. activities
to maintain risk control systems
sca
Hydrocarbons or
other dangerous
material
Pre
ie
arr
rs
ie
arr
LOPC event
Figure 1 KPIs applied to the Swiss cheese model
Lagging indicators
measure barrier defects (holes),
events and consequences
Major incident
or other consequence
indi
Tier 1
cato
rs
LOPC events of
greater consequence
ging
Tier 2
ding
LOPC events of
lesser consequence
Lea
Tier 4
Operating discipline & management system performance indicators
rs
cato
Tier 3
indi
Lag
Tiers 1 and 2
Tiers 3 and 4
Table 1 Summary definitions for process safety events (see Report 456 for details)
A Tier 1 or Tier 2 PSE is recordable when the event results in one or more of the three outcomes listed below
LOPC events that, in any one hour period, result in the release of a material equal to or greater than the Tier 1 or Tier 2 PSE threshold quantities for substances as listed in OGP
Report 456, e.g. a 500kg outdoor release of flammable gas (methane, etc.) or low flash point liquid (LNG, etc.) would be recorded as Tier 1, whereas a 50kg release of the same
material would be recorded as Tier 2.
or
2
Irrespective of the size or type of material released,
LOPC events that result in one or more of the
consequences listed for Tier 1 or for Tier 2.
Tier 1
Employee or contractor fatality or Lost Work Day Case
Third party fatality or hospital admission
Community evacuation or shelter-in-place
Fire or explosion resulting in direct cost $25,000
Tier 2
Employee or contractor Restricted Work Day Case
or Medical Treatment Case
Fire or explosion resulting in direct cost $2,500
or
Discharges to atmosphere from a pressure relief device or a correctly functioning destructive device (e.g. flare or scrubber) may be Tier 3 events but are not considered recordable at
Tier 1 or 2 unless the events result in the release of a material equal to or greater than the Tier 1 or Tier 2 PSE threshold quantities (as described in outcome 1 above) together with
any of these four consequences:
liquid carryover
on-site shelter in place
discharge to a potentially hazardous location
public protective measures
www.ogp.org.uk
Implementation
Companies should not collect data
just to keep score. Instead, they should
fully integrate a regular process for
KPI selection and review into their
management system. By doing this,
companies will steadily improve their
barrier strength. OGP recommends a
six-step process (see Report 456).
It is often best to consolidate Tier 1
and Tier 2 KPIs at company level for
corporate reporting. This enables internal
and external reviews and supports the
OGP benchmarking process.
Tier 3 and Tier 4 KPIs are more
appropriate for monitoring facility
performance. Some, however, may
be consolidated at corporate level
to test management system controls
implemented across the whole company.
Data collection, communication and
review are important final steps. If the
data are reliable and communicated
well, these highlight relevant trends
and changes to promote management
action. Graphical output supported
by interpretative text and dashboard
concepts can be effective.
The final step is to put the data to work
and strengthen the risk control barriers
in the management system. This should
be part of the continuous improvement
cycle. Typically, a full annual review
of the resulting actions from previous
performance analysis and KPI
effectiveness will take into account other
inputs. These can include audit findings,
incident lessons learned, plant reliability
records, benchmarks and industry best
practices.
Step 1
Step 2
Establish industry Tier 1 and Tier 2 KPIs to assess company performance
Step 3
Step 4
Select Tier 3 and Tier 4 KPIs to monitor critical barriers at facilities
Step 5
Collect quality data, analyse performance and use to set improvement actions
Step 6
Regularly review critical barriers, actions, performance and KPI effectiveness
Further information
Report 456, Process Safety
Recommended Practice on Key
Performance Indicators, can be
downloaded from the publications
section of the OGP website,
(http://www.ogp.org.uk).
About OGP
GP represents the upstream oil & gas industry before international organisations including the International Maritime Organisation, the United
Nations Environment Programme (UNEP), Regional Seas Conventions and other groups under the UN umbrella. At the regional level, OGP is the
industry representative to the European Commission and Parliament and the OSPAR Commission for the North East Atlantic. Equally important is OGPs
role in promulgating best practices, particularly in the areas of health, safety, the environment and social responsibility.
London office: 209-215 Blackfriars Road, London SE1 8NL, UK Tel: +44 (0)20 7633 0272 Fax: +44 (0)20 7633 2350
Brussels office: 165 Bd du Souverain, B-1160 Brussels, Belgium Tel: +32 (0)2 566 9150 Fax: +32 (0)2 566 9159
Web: www.ogp.org.uk E-mail: reception@ogp.org.uk