Upstream

Operations
Excellence
Leveraging Knowledge Globally
for Continuous Improvement
Operations Excellence
  An integral step on the strategic path forward

2 Operations Excellence Overview ConocoPhillips spends

billions of dollars and
3 Vision, Mission and Objectives
millions of man hours
4 Operations Excellence Focus Areas each year planning,
5 Operations Excellence Framework constructing, drilling for
6 Performance Assessment and Improvement Programs and extracting oil and
gas to provide energy
9 Performance Monitoring and Metrics
to the world.
10 Functional Excellence Operating Model
Imagine discovering
11 Networks of Excellence an additional 100,000
12 Integrated Operations BOEPD.
13 Operability Assurance – Building the Foundation Imagine creating
additional value for the
14 Region and Business Unit Sites company simply by
16 Appendix: Operations Excellence Systems improving the way
we work.
Imagine being able
to access and apply
thousands of years worth
of industry knowledge.
Through the Operations
Excellence systematic
approach to continuous
improvement, together
we can deliver thousands
of barrels of untapped
wealth from the assets
we already own.

1
 Vision
Operations Excellence Overview • Be an industry leader in Health, Safety and
Environment and Asset and Operating Integrity.
•D  eliver on long-range plan (LRP)
commitments.

nts
•A  chieve an aspirational target of

me
95 percent or greater direct operating

HS
mit
efficiency (DOE).

E
Com

an d
Mission ELEVATE

A&
ial
To improve operational Operations

OI
anc
performance and deliver a
Performance

Fin
sustainable competitive
advantage. Operational Efficiency
Sound operating
Objectives principles
Operations Excellence is an essential component of the Upstream resonate in both
organization’s continuous improvement efforts to:
• Reduce risk: A comprehensive risk-management process can prevent the
strong and weak
occurrence and mitigate the consequences of major incidents. Leadership
and Management; Planning and Scheduling; Human Performance; Asset
commodity pricing.
and Operating Integrity (including Process Safety); Health, Safety and
Environment; and Maintenance and Reliability programs contribute to the
ConocoPhillips
prevention of serious incidents. These Operations Excellence systems are
designed to minimize the potential for HSE impacts and maximize operating
upholds these
reliability.
principles in our
Upstream Operations Excellence • Improve base production: On any given day, ConocoPhillips produces over

Operations Excellence (OE) is a systematic and collaborative

a million BOEPD from existing sources, so even small improvements in businesses so that
Operations Excellence approach to enabling safe, reliable and efficient operations. It provides
production can significantly impact the company’s bottom line.

the tools to identify and turn opportunities into realized improvements. • Ensure operability: It is essential that projects come onstream and perform we can safely meet
is a systematic The approach recognizes the operational and business challenges as premised in the basis of design. For this reason, it is critical that
inherent in our global business. OE’s methodology is aimed at striking learnings from operations are fed back into project design and construction. the energy demands
and collaborative the optimal balance between the discipline gained from structured
global processes and the quick decision-making and personal
In order to achieve these objectives, ConocoPhillips has developed a of the present and
approach to enabling ownership derived from an experienced-based organization.
systematic approach to delivering sustainable improvements. The approach
consists of four interrelated focus areas and will be discussed in greater the future.
safe, reliable and Operations Excellence provides the platform for the retention and depth in the next section.
sharing of corporate knowledge that is critical to ConocoPhillips’ future
efficient operations. success. It establishes a common language and approach that drives
consistency in performance across Upstream.

2 3
From challenging Operations Excellence Focus Areas Operations Excellence Framework
The Operations Excellence approach is designed to ensure the consistent The first focus area, the Operations Excellence Framework, sets expectations Operations Excellence Focus Area
offshore delivery of financial, operational and HSE performance improvements. It across Upstream operations by focusing on work practices within the eight OE
Assessment
Diagnostics
Solution
Design
Implementation

External View: Internal View: Subteams: Organization:

is organized around four focus areas, and together they form a cycle of
Upstream More in-depth Develop Detailed design

defined systems. These practices describe the attributes of an excellent

perspective on discovery and solutions and and execution

environments to
areas of quantification of business case
opportunity opportunities

Leadership Prioritize Build out Capture value

commitment & quantify solutions
I.D. potential opportunities
opportunities

Value Delivery

continuous improvement. operation and together serve as the benchmark by which performance can Expectations

nts
be measured and assessed.

me
unique onshore

HS
mit
1. The Operations Excellence Framework sets expectations.

Ea
Com

nd
ELEVATE

A&
ial
Operations

O
anc

I
The framework of practices is organized into eight systems. These systems Performance

Fin
2. Performance Assessments and Improvement Programs sets the objectives Operational Efficiency

operations, the OE are dependent and supportive of each other as depicted in the diagram
OELT
100%

FET FET FET

of and the approach to improve operational performance.

% DOE
50%

Export
Well Losses Facility Losses Losses
NoE NoE NoE
0%
e .
ses Lift ent ses ses nds grity anc ets trols grity ery ent ses ses sing on ses DOE
Exp

below. The four vertical bars describe the core functional competencies an
Los cial airm l Los l Los arou Inte Ups Con Inte chin ipm Los Los ces rtati . & Los al
nten s
NoE NoE NoE Zero Artifi Imp Wel Wel Turn ility Mai
le er
ces
&
line oma g Equ ility
Fac Fac
ility
ort
Pro
Tran
spo Fac
l, Oth
er
Actu
Fac ility Pro tion
nho Oth From Pipe Turb atin er l& ort Wel
enta Rot Oth Wel Exp
Dow All Fac Exp From
rum er All
Inst Oth From
NoE NoE NoE

Operating Operating

principles remain
Model Efficency

3. Performance Monitoring records metrics and analyzes data. asset must possess to maximize output and minimize losses and risk:
4. Functional Excellence drives performance improvements through effective • Asset and Operating Integrity (A&OI) Operations Excellence
consistent. collaboration and knowledge sharing. • Maintenance and Reliability (M&R) Framework
The approach and methodology have proven successful in enabling • Planning and Scheduling (P&S) Establishing consistent
• Production Surveillance and Optimization (PS&O) expectations across all
performance improvements in assets across the globe. The process also ConocoPhillips operations.
enables the continuous improvement of the OE program itself as best The four horizontal bars describe the enabling systems that support the
practices captured through assessments and knowledge sharing are delivery of results:
incorporated into the framework and the cycle is renewed.
• Leadership and Management (L&M)
• Health, Safety and Environment (HSE)
• Human Performance (HP)
• Operations Cost Management (OCM)

Operations Excellence Focus Areas

A detailed description and a listing of practices necessary to attain OE Level 3
for each system can be found in the Appendix. The Operations
Operations Excellence Systems
Excellence
2. Performance Assessment and Operations Asset & Maintenance Planning & Production framework provides
1. OE Framework Improvement Programs Operating & Scheduling Surveillance &
Excellence Integrity Reliability Optimization
Framework a roadmap for
OE Solution
Systems Interweave
understanding
Diagnostics Implementation
Assessment Design

External View: Internal View: Subteams: Organization:

Upstream More in-depth Develop Detailed design
perspective on discovery and solutions and and execution
areas of
opportunity
quantification of
opportunities
business case
Leadership &
N Management
and prioritizing
Leadership Prioritize Build out Capture value
commitment & quantify solutions
opportunities
I.D. potential
opportunities
DO
A
PL

Health, Safety &

our activities into a
s

Expectations Value Delivery

nt

Environment
me

HS

longer-term vision.
mit

Ea

Human
om

nd

Performance
ELEVATE
C

A&
ial

Operations
OI
anc

Operations Cost
Performance
Fin

OELT Management
100%

FET FET FET

Operational Efficiency
% DOE

50%

Export
Well Losses Facility Losses Losses
NoE NoE NoE

The framework provides a consistent set of operating principles that can be

S

0%
es
t
ift
en sse
s es nds ty e
ets ols grity ery en
t
se
s
se
s g on p. es E
ss lL ss gri nc in
ati Ex oss DO
irm u na ps ontr hin ipm Los Los ss
Lo cia Lo Lo aro te U te
ac ce port c. & L al
pa In te In
NoE NoE NoE ifi ell ell urn s C qu ility er
AD

ty tu
Ze
ro
Art Im ty ain ces & e
om g E cili Pro ns Fa th Ac
rW mW T cili M on ipelin urb Fa
c
Fa port Tra O
ole the Fa ility Pro tati tin ell,
ES

nh T er
O Fro c en
P ta & Ex po
rt W
w
All Fa Ro Oth Well m
Do um er Ex Fro

applied during all phases of asset life. However, it is not prescriptive, allowing
str All

U
th m
In O Fro
NoE NoE NoE

ST S
AS
J

Operating Operating it to be flexible enough to adapt to the uniqueness of any Upstream operation.
Model Efficency
Its purpose is to assist business units in developing a consistent approach to:
4. Functional Excellence 3. Performance Monitoring • Managing an operation.
• Determining system and process maturity.
• Identifying improvement opportunities.
• Developing and using common terminology to facilitate knowledge sharing
across operations and geographical boundaries.
4 5
 Performance Assessment and Improvement OE Solution
Implementation
Operations Excellence Focus Area Programs Assessment
Diagnostics
Design Operations Excellence Focus Area
OE
Assessment

External View:
Upstream
perspective on
Diagnostics

Internal View:
More in-depth
discovery and
Develop
Solution
Design

Subteams:

solutions and
Implementation

Organization:
Detailed design
and execution
The second focus area, Performance Assessment and Improvement OE
Assessment

External View:
Upstream
perspective on
Diagnostics

Internal View:
More in-depth
discovery and
Subteams:
Develop
Solution
Design

solutions and
Implementation

Organization:
Detailed design
and execution

Programs, is a systematic approach to analyzing performance and developing

areas of quantification of business case areas of quantification of business case
opportunity opportunities opportunity opportunities

Leadership Prioritize Build out Capture value Leadership Prioritize Build out Capture value
commitment & quantify solutions commitment & quantify solutions
I.D. potential opportunities I.D. potential opportunities

Expectations Expectations
opportunities opportunities

Value Delivery
improvement plans. The initial phase of the process, OE Assessment, is critical to the success Value Delivery
nts

nts
me

me
of the Strategic Improvement Planning process because it quickly identifies
HS

HS
mit

mit
Ea

Ea
Com

Com
nd

nd
ELEVATE
There are four distinct phases of the Strategic Improvement Planning (SIP) ELEVATE
A

A
ial

ial
strengths and gaps of an asset before significant resources are invested in
&O

&O
Operations Operations
anc

anc
I

I
Performance Performance
Fin

Fin
OELT
Operational Efficiency
100%
process: subsequent phases. Additionally, the assessment prioritizes improvement OELT
Operational Efficiency
100%

FET FET FET FET FET FET

% DOE

% DOE
opportunities and evaluates unit maturity against the framework criteria.
50% 50%

• During the first phase, OE Assessment, high-level opportunities are

Export Export
Well Losses Facility Losses Losses Well Losses Facility Losses Losses
NoE NoE NoE NoE NoE NoE
0% 0%
e . e .
ses l Lift ent ses ses nds grity anc ets trols grity ery ent ses ses sing ion Exp ses DOE ses l Lift ent ses ses nds grity anc ets trols grity ery ent ses ses sing ion Exp ses DOE
Los airm l Los l Los arou Inte Ups Con Inte chin ipm Los Los ces rtat . & Los ual Los airm l Los l Los arou Inte Ups Con Inte chin ipm Los Los ces rtat . & Los ual
ficia nten s ficia nten s
NoE NoE NoE Zero Arti
le
Imp Wel Wel Turn ility Mai ces
&
line oma g Equ ility ility Pro spo Fac
l, Oth
er
Act NoE NoE NoE Zero Arti
le
Imp Wel Wel Turn ility Mai ces
&
line oma g Equ ility ility Pro spo Fac
l, Oth
er
Act
er Fac ility Pro tion Fac Fac ort Tran er Fac ility Pro tion Fac Fac ort Tran
nho Oth From Pipe Turb atin er l& ort Wel nho Oth From Pipe Turb atin er l& ort Wel
enta Rot Oth Wel Exp enta Rot Oth Wel Exp
Dow All Fac Exp From Dow All Fac Exp From
rum er All rum er All
Inst Oth From Inst Oth From
NoE NoE NoE NoE NoE NoE

Operating Operating Operating Operating

identified.
Model Efficency Model Efficency

The assessment is made up of interviews, data analysis and system reviews,

Performance Assessment • During the second phase, Diagnostics, in-depth investigation occurs to which provide an objective perspective of a unit’s performance and are used Performance Assessment
and Improvement Programs prioritize and quantify the opportunities captured in the initial phase. to recommend improvement plans. and Improvement Programs
Systematic approaches to understand The assessment Systematic approaches to understand
• During the third phase, Solution Design, potential solutions are determined;
how each operation is performing. 8 Operations Excellence Systems how each operation is performing.
a business case is developed; and an execution plan that details actionable is coordinated
L&M HSE HP P&S PS&O M&R OCM A&OI
tasks, resources and tools is prepared. and facilitated
by the OE team Self-Assessment Surveys
• In the final phase, Implementation, execution of the detailed design is in partnership Focus Interviews Process Interviews Data Analysis
implemented and the value is realized. with the unit. System Summaries Sheets
Successful SIP implementation requires adequate resources, a well-defined Through the
project execution plan and effective steering team oversight. latter phases of Strengths
Balance
View
Improvement
Opportunities

The Operations the SIP process,

the primary
To accelerate the
Supporting Data

Excellence Assessment and SIP Process Overview responsibility

transitions from
delivery of value
Final Quantified &

framework drives the OE team to

and development
Report Prioritized
Opportunity List

Building Ownership/Managing Change/Communication the unit team.

improvement The purpose
of the assessment is to provide sufficient information for the creation of a
of capability
OE Solution
throughout Assessment
Diagnostics
Design
Implementation Strategic Improvement Plan.
simultaneously,
After an Operations Excellence assessment has been completed, the unit
operations by leadership team defines the scope, areas for improvement and project ConocoPhillips
External View: Internal View: Subteams: Organization: approach. Then, teams are chartered to implement the improvement plan.
providing assessment Upstream More in-depth Develop Detailed design launched its
perspective on discovery and solutions and and execution
tools and guidance areas of
opportunity
quantification of
opportunities
business case
Operations
for building strategic Leadership Prioritize Build out Capture value
Excellence program.
commitment & quantify solutions
improvement plans. I.D. potential opportunities
opportunities

6 7
 OE Solution
Performance Monitoring and Metrics
Diagnostics Implementation
Operations Excellence Focus Area Assessment Design The third focus area is Performance Monitoring and Metrics. This area is Operations Excellence Focus Area
OE
Assessment
Diagnostics
Solution
Design
Implementation
critical to the understanding and improvement of operational performance. OE
Assessment

External View:
Upstream
Diagnostics

Internal View:
More in-depth
Solution
Design

Subteams:
Develop
Implementation

Organization:
Detailed design
perspective on discovery and solutions and and execution
areas of quantification of business case
opportunity opportunities
External View: Internal View: Subteams: Organization:
Upstream More in-depth Develop Detailed design Leadership Prioritize Build out Capture value

Operations Excellence’s primary performance monitoring vehicle is the Loss

perspective on discovery and solutions and and execution commitment & quantify solutions
opportunities
areas of quantification of business case I.D. potential
opportunities
opportunity opportunities

In the next phase, Diagnostics, the opportunities identified in the OE

Leadership Prioritize Build out Capture value
commitment & quantify solutions
I.D. potential opportunities

Expectations
opportunities
Expectations Value Delivery

Value Delivery
Assessment are explored in greater depth in order to better understand the Production (LP) Metrics program. It is used to identify opportunities for

nts
nts

me
me

HS
HS

mit
improvement by measuring actual performance versus potential performance.
mit

Ea
Ea

Com
drivers and issues behind each opportunity. It is also during this phase that
Com

nd
nd

ELEVATE ELEVATE

A&
ial
A
ial

Operations
&O

OI
anc
Operations
Instances of both planned and unplanned losses are captured and
anc

Performance

Fin
an “as-is” assessment of current processes and performance is developed.
Performance
Fin

Operational Efficiency 100%

Operational Efficiency

categorized into global loss categories.

% DOE
50%
OELT
OELT Well Losses Facility Losses
Export
Losses

100% FET FET FET 0%

y s ls y ry nt g n . E
ses Lift ent ses ses ds ce ses ses sin atio ses DO
grit set ntro grit ine me Exp
FET FET FET o
Los
Art
ific
ial
Imp
airm ll Los ll Los
We We Tur
nar
oun
Inte
ility Ma
inte
nan Up
s
&
Co e Inte ach
Eq
uip
ility
Los Los ces
ility Pro nsp Fac
ort .&
er
Los ual
Act
Zer e ces elin bom ng Oth
% DOE

er m tion Fac Fac ort Tra ll,

hol Fac ility Pro Pip Tur tati er & We
Oth Fro nta ort
50% wn
All Fac me Ro Oth Well Exp m
Do er Exp Fro
NoE NoE NoE tru
Oth
All m
Ins Fro
Export
Well Losses Facility Losses Losses
NoE NoE NoE NoE NoE NoE
0%
e .
ses l Lift
ent ses ses nds grity anc ets trols grity ery ent ses ses sing ion Exp ses DOE
Los airm l Los l Los arou Inte Ups Con Inte chin ipm Los Los ces rtat . & Los ual
ficia nten s
NoE NoE NoE spo Fac er
NoE NoE NoE

Operating
Arti Imp
Wel Wel Turn ility Mai & oma g Equ ility ility Pro Act
Zero le ces line l, Oth
er Fac ility Pro tion Fac Fac ort Tran
nho Oth From Pipe Turb atin er l& ort Wel
Exp

The measurement and management of production losses is an important

Fac enta Rot Oth Wel
Dow All rum er Exp From
All
Inst Oth From
NoE NoE NoE

Operating
Operating Operating Model Efficency
Model Efficency

aspect of Upstream’s defect elimination and continuous improvement efforts.

Performance Assessment OE Solution
This method of recording data provides internal benchmarking capability and Performance Monitoring
and Improvement Programs Assessment
Diagnostics
Design
Implementation serves as a basis for understanding the causes of production losses. Measuring, analyzing and eliminating
Systematic approaches to understand production losses.
how each operation is performing.
In the next phase, Solution Design, concepts are created to address
issues identified in the previous phases. The solutions range from complex Direct Operating Efficiency (DOE) and Losses
changes, such as a business process redesign, to simpler changes, such
as the utilization of a more efficient tool. Several alternative solutions may 100%
be developed for consideration. The Solution Design phase ends with
the creation of an implementation plan that describes the detailed tasks,
resources and tools necessary to achieve the Solution Design objectives.

% DOE
50%

Export
Well Losses Facility Losses Losses
OE Solution
Diagnostics Implementation
Assessment Design
The Operations 0%

ss
es
al
Li
ft
en
t
ss
es
ss
es nd
s
eg
rit
y
an
ce
ps
et
s
tro
ls
eg
rit
y
in
er
y
en
t
ss
es
si
ng tion
ss
es p.
Ex oss
es
DO
E The improvement
Lo ci i rm o o ou t n on t h pm es
Lo Lo rta . & al
tifi pa lL lL ar In te C U In ac ui c o r L u
ro el el n y i n
es
s e q ili t y
ili t y ro p c e t

Excellence plan is a project

Ar r om g E s a
Ze Im
rW mW Tu ci
lit a & in P an ll, F th Ac
M oc tion ipel rb ac Fac rt
In the final phase, the Implementation plan is executed and value is realized. nho
l e
th
e
Fr
o Fa ility
c
Pr
n ta P Tu t at
in
e rF
l & x po
o rt
Tr
W
e O
w lO Fa e Ro Oth Wel E p m
Do Al m er l Ex Fro
ru th Al
st m
framework helps our management tool to
I n O ro
F

workforce focus on measure progress.

the right things at
the right time in the
proper way.

8 9
 Functional Excellence Operating Model Networks of Excellence (NoEs)
Operations Excellence Focus Area The fourth focus area is the Functional Excellence Operating Model, which At the heart of the Operations Excellence structure are Networks of
OE
Assessment
Diagnostics
Solution
Design
Implementation
describes the structure of the OE organization and how it supports the Excellence (NoEs). NoEs provide a means to improve efficiency in knowledge
sharing and performance improvement across Upstream’s global operations.
External View: Internal View: Subteams: Organization:
Upstream More in-depth Develop Detailed design

development and implementation of OE’s processes, tools and guidelines.

perspective on discovery and solutions and and execution
areas of quantification of business case
opportunity opportunities

Leadership Prioritize Build out Capture value

commitment & quantify solutions
opportunities
I.D. potential
opportunities

Expectations Value Delivery

NoEs are responsible for active leveraging of best practices within the
The model was developed to company.
s nt
me

FET and NoE Structure

HS
mit

promote functional excellence

Ea
Com

nd

ELEVATE
A&
ial

Operations
NoE core teams are chartered with a clear business case by the Functional
OI
anc

Performance
and continuous improvement
Fin

OELT

Excellence Teams. They consist of technology practitioners and experts and

FET FET FET
Operational Efficiency

NoE NoE NoE

100%

across Upstream. Its design

OELT are accountable for effectiveness of the broader network. Membership is
% DOE

NoE NoE NoE 50%

creates value through knowledge

Export
Well Losses Facility Losses Losses

NoE NoE NoE 0%

e .
ses l Lift ent ses ses nds grity anc ets trols grity ery ent ses ses sing ion Exp ses DOE
Los airm l Los l Los arou Inte Ups Con Inte chin ipm Los Los ces rtat . & Los ual
ficia nten s er
Arti Imp Wel Wel Turn ility Mai & oma g Equ ility ility Pro spo Fac
Zero ces line l, Oth Act
le er tion Fac Fac ort Tran
Fac ility Pro Pipe Turb atin er
nho Oth From enta l& Exp ort Wel
All Fac Rot Oth Wel
Dow rum er Exp From
All

Operating
Inst Oth From

open to interested operations and technical staff. In a sense, all employees

Model Operating

sharing (leveraging the collective

Efficency

experience across Upstream), are “extended team members” in some form because everyone shares in the
Functional Excellence developing common work responsibility of operating in the safest and most efficient manner possible.
Driving improved performance
through knowledge sharing. processes and technology, and FET FET FET In order to sustain the network to ensure it continues to create value over
providing unit support (responsive
to unit operational challenges).
time, periodic network health checks are conducted. The health check Periodic checks
measures network performance against the critical success factors
The way various groups interact shown below. ensure that the
is described more fully in the NoE NoE NoE These periodic checks ensure that the networks have the necessary support,
Operations Excellence functional resources and direction required for their continued success. The checks networks have the
excellence operating model highlight the importance of sponsorship, clear business direction and
document. Information regarding
NoE NoE NoE
engaged membership to the ongoing health and effectiveness of the NoE. necessary support,
the model can be found on
OneWiki (internal knowledge- Workgroup Workgroup Workgroup resources and
sharing portal) and SharePoint
sites. Ten Critical Success Factors direction.
Operations Excellence
Roles and Responsibilities
NoEs are focused on The Functional Excellence structure is comprised of four types of knowledge- Leadership &
Sponsorship
sharing teams as outlined in the diagram. These teams are made up of
targeted knowledge dedicated and committed operations leaders and key personnel. In addition
to dedicated people, successful teams require effective structure, governance Clear Business Adequate
sharing to improve and leadership. Case Resources &
(Justification) Defined Roles
performance in all of • Operations Excellence Leadership Team (OELT): A group of senior
operations leaders who provide strategic oversight and direction for Clear Development
Members
the OE systems Operations Excellence. Engaged
Deliverables
& Activities
of Trusted
Relationship
• Functional Excellence Team (FET): A group of operations and technical
leaders who set strategy and provide oversight for specific functional areas Transfer Sporting Motivation,
(e.g., A&OI and M&R) – typically eight to 15 members. Network
Processes Technology Recognition
Measurement
• Network of Excellence (NoE): A group of selected unit and corporate (Lessons learned) (Easy-to-use standards) & Rewards
staff that provides detailed technical guidance and knowledge sharing by
discipline – typically six to 10 individuals with an extended team of several
Building blocks to create and sustain networks
hundred staff members.
• Work Group: A group that addresses specific issues – typically five to 20
individuals – drawn from the global ConocoPhillips workforce.

10 11
Integrated
Operations is about
getting better and
faster decisions to
enable increased
production, reduced
operational cost and
improve HSE.
IO Value Drivers
 reater visibility &
G  aster response time &
transparency
One truth data set
Improved knowledge
retention
Workflow re-engineering
Improved data
management
Enhanced visualization
Better decision tools
 reater real-time
G  etter internal & external
monitoring & interpretation
 eal-time data access
R
globally
Increased automation
12
Integrated Operations Operability Assurance (OA) – Building the
In the same way that the OE operating model promotes functional excellence Foundation
and continuous improvement, Integrated Operations advances excellence Operations Excellence begins well before operations commence.
in operations by facilitating collaboration across the various functions.
Integrated Operations is a systematic approach to achieving improved In order to ensure capital projects deliver safe, operable, efficient, reliable
and maintainable facilities, the OA program has been developed. The
operating performance by people
effectively collaborating across program ensures timely and effective operations involvement in capital
projects. Elements of the OA program ensure that operations readiness will
disciplines and geographies in
an environment of continuous
Integrated Operations
be achieved.
improvement.
GGRE Wells Project Ops.
Subject-matter experts (SME) are engaged to support the progression of OA
In order to sustain continuous within the project environment.
improvement as operations
Support Functions Effective implementation of the project OA plan and schedule, integrated
grow larger and more complex, with the Capital Project Management System (CPMS), provides an auditable
a formal Integrated Operations
Operating Excellence gateway to Operations Excellence.
framework is necessary to
achieve Operations Excellence. Operability Assurance Standard Operations
The table below details the value drivers, business impacts and outcomes The Operability Assurance Standard in the Capital Project Management
that can be achieved by a successful Integrated Operations implementation. System defines the minimum requirements for planning and executing Excellence is not
Operability Assurance for capital projects by ConocoPhillips Project
Management Teams. something extra we
The OA engagement process is kicked off by the appropriate project
Business Impacts Business Outcomes operations representative and shall commence during FEL-1 before
do; rather its the way
the concept selection is finalized. This engagement provides the basis
for developing a project OA plan and schedule, meeting the minimum
we run our business.
F
reduced downtime requirements of the OA standard.
Improved safety All of the OE programs and processes discussed are in service to the
 ocus on solutions rather
F
overarching goal of continuous improvement.
than data cleansing
Better decision making Continuous Improvement
Continuous improvement is a structured approach to identifying opportunities
 etter interface management
B for business improvement. The Plan-Do-Assess-Adjust model applies to the
with contractors Improved production systems within the Operations
Excellence framework and to the Continuous Improvement Cycle
 alue chain integration &
V Operations Excellence process
improved logistics itself. Under the Plan-Do-Assess-
Adjust model, operations are
 etter operational process
B
assessed against standards,
management
improvement programs are
Reduced opex developed and executed, and
Improved asset management program progress is measured
against the opportunities for
B improvement identified in the
collaboration original assessment. Review is
necessary to enable management
Better planning & execution to understand the status of
Reduced capex program compliance or completion, performance, and effectiveness. Review
 ore predictive & proactive
M of results provides management with directions and priorities for closure of
performance gaps.
maintenance management
Continuous learning and improvement brought about by knowledge sharing
and Operations Excellence will help to ensure the future growth and
success of the company.
13
 Committed to Excellence

14 15

Appendix: Operations Excellence Systems
18 
Leadership and Management
20 Human Performance
22 Planning and Scheduling
24 Asset and Operating Integrity
26 Maintenance and Reliability
28 Production Surveillance and Optimization
30 Operations Cost Management
32 Health, Safety and Environment
16
Operations Excellence Framework Structure
In order to facilitate continuous improvement, the Operations Excellence
Framework structure is based on a continuous improvement cycle.
• Systems – The highest level defined in the Operations Excellence
Framework, they comprise groups of elements within a broad functional
area.
• Processes – Plan, Do, Assess, Adjust – a high-level grouping of related
elements within each system.
• Elements – These are a grouping of related practices that work together to
deliver the system requirements.
• Practices – Describe the work activities that take place in order to have an
excellent operation. These are the lowest defined level in the Operations
Excellence Framework.
Management System Approach Structure
Operations Excellence Processes Operations Excellence Systems
System
System’s Elements System’s Practices
Legend: Plan Do Assess Adjust
17

Plan
Vision
Policy Development and Compliance
Vision Alignment and SPIRIT Values
Operating Philosophy
Strategy Development and Implementation
Business Planning
Business Goal Setting
Integrated Business Planning
Stakeholder Engagement
Identification and Analysis
Engagement and Alignment
Integrated Operations Design
Define IO Model
Understand Opportunities
Continuous Improvement Culture
Demonstrate Long-Term Commitment
Organizational Capability
Improvement Planning
18
OE Framework: Leadership and Management Plan □ The BU integrates people so that they effectively communicate
across functional boundaries and geographies.
□ The BU has established processes/controls in place for policy
(L&M) System Outline and Checklist development and compliance (and noncompliance). □ A process is in place to integrate technologies with the operating
philosophy and business case.
□ Corporate & BU vision, alignment and SPIRIT values are
The Leadership and Management (L&M) system is a key foundational understood. BU leadership reinforces SPIRIT values. □ Opportunity identification is determined by defining gaps between
current and desired states (business process gap analysis).
component of an effective organization. The practices within the system □ The BU operating philosophy addresses all eight OE systems. All
stakeholders are aligned with this philosophy. □ Potential projects are aligned with BU strategic objectives, clearly
describe how business objectives can be developed, communicated, defined, targeted and result in measurable improvement (project
organizationally aligned and managed to deliver results. □ Documented strategies are developed and implemented to
selection and definition).
translate the BU vision into defined goals/objectives.
□ Project execution is done by multidisciplined teams (that involve
This system is one of eight systems in the Operations Excellence (OE) □ There is clear “line of sight” among individual performance goals,
stakeholders). Project reviews are formal and align with identified
department goals, BU and corporate goals. The progress on
Framework and consists of 51 practices that describe how business business goals is communicated regularly.
stage-gates.
objectives can be developed, communicated, aligned and managed within □ BU management supports and champions an effective integrated
a management system to deliver results. The guidance within this section business planning process that facilitates the achievement of goals
Assess
and objectives on operational, tactical and strategic levels. The BU □ There is a regular review procedure where metrics/KPIs are
is consistent with the performance characteristics of OE Level 3. The reviewed, variances are discussed and actions agreed.
demonstrates reactive capability as appropriate.
structure is based on the continuous improvement cycle of Plan, Do, Assess □ The BU has a defined benchmarking strategy that is aligned with
□ A process is in place to identify stakeholders. Internal and external
and Adjust. stakeholders are considered. corporate requirements and strategy.
□ Stakeholder considerations are incorporated into the business □ Periodic/holistic reviews are conducted to address all eight OE
planning process. The unit demonstrates active community systems and identify/address opportunities.
engagement as outlined in the sustainable development program. □ Audit findings are effectively managed and closed in a timely
□ A defined Integrated Operations (IO) model is being implemented manner. No significant findings are identified.
and is aligned with the operating philosophy. □ Conflicts, inefficiencies or gaps in the integration (maturity) of
Do Assess Adjust □ BU leadership has a detailed understanding of the current
maturity of its functional components and their interaction. The BU
people, processes and technology are evaluated and quantified.
□ The business performance/value of IO plans/projects is being
Organizing System Performance Review Opportunity Management understands opportunities from specific IO improvements. realized as defined in the IO improvement plan.
Organizational Alignment Metrics and KPIs Opportunity Capture □ BU leadership demonstrates long-term commitment through its □ CI process KPIs are utilized to measure and drive CI process
Business Process Management Benchmarking Prioritization vision, CI program and resources, and multiyear strategy. performance and improvements.
Management Control and Reporting Review Process Funding and Implementation
□ The BU demonstrates organizational capability through its CI □ There is a structured approach to measuring results and benefits
Audit After-Action Review
Communications
program. tracking.
Engagement Knowledge Sharing □ Multiyear strategic improvement plans are implemented per a
Communication Planning Local Knowledge Sharing structured process that defines value criteria. Adjust
Communication Effectiveness Global Knowledge Sharing
□ The BU has opportunities (driven by known problems) ranging
Meeting Effectiveness Management Support and Global Accountability Do from immature ideas to ready-to-execute projects.
Information Management Change Management □ The BU demonstrates organizational alignment by honoring □ A formal prioritization process is implemented to ensure projects
Strategy Management of Change Stewardship commitments and performing minimal reactive work. are consistently ranked and aligned with BU goals.
Governance Change Leadership □ Business processes are assessed for criticality and documented □ The prioritization process feeds the BU budget setting process
Data Quality Control accordingly. Documentation includes processes for managing (funding/implementation).
Data Use interfaces, ownership and performance.
□ E xecuted projects/activities are subject to after-action reviews. The
Integrated Operations Implementation Integrated Operations Assessment Integrated Operations Improvement
□ A structured system for management control and reporting is results are used to adjust processes/procedures for the BU.
effectively utilized to achieve objectives. Performance measures
Integrating Processes Integration Maturity IO Model Adjustment □ A process is in place to share local knowledge within the BU as
incorporate short-, medium- and long-term aspects and are
Integrating People Business Performance Business Environment Response demonstrated by the application of lessons learned.
Integrating Technology reviewed and acted on accordingly.
□ The BU uses global knowledge sharing (KS) networks/tools as
□ An environment of open communication, engagement, interaction
evidenced by broad participation and documented successes.
Continuous Improvement Continuous Improvement Assessment Continuous Improvement Sustain and and collaboration is maintained.
Implementation Process Performance Control □ Visible management support/accountability exists for KS. The BU
□ A documented communication plan and process exists that
Business Process Gap Analysis Results and Benefit Tracking Process and System Sustainability participates in ConocoPhillips global collaboration efforts.
describes interaction with internal/external stakeholders, type/
Project Selection and Definition Controls Management □ A comprehensive MOC stewardship/process is in place and
content, frequency and roles/responsibilities.
Project Execution System Performance Review effectively implemented with active management support.
□ Communication effectiveness is measured through organizational
and individual surveys. Appropriate adjustments are made to the □ BU leadership employs tactical approaches to delivering change.
communication plan. They understand, assess and act on change barriers.
□ Meetings are effective in making decisions and driving actions as □ The BU conducts systematic and periodic reviews of the IO model
evidenced by preparation, execution and follow-up. (adjustment) to resolve conflicts, inefficiencies and gaps.
□ Information management strategy is addressed in the BU □ The business environment response involves recognized tools that
operating philosophy and is integrated with other systems and promote an active approach to IO adjustment.
processes. □ Process/system sustainability takes place through KPIs and
□ Information management governance is addressed via defined associated targets.
accountability/controls, change management processes and data □ A controls management plan exists to ensure that the improved
management plans. process is implemented and stays in control.
□ The BU has an integrated approach with stakeholders and support
teams (e.g., IT) to ensure data quality control targets are met.
□ Authoritative data is both accessible and reliable and enables
analysis/decision making (data usage).
□ An integrated planning process is in place to deliver the operating
philosophy and business plan.
19

Plan
Policy and Strategy
Policy Understanding and Compliance
Workforce Strategy
Job Definition and Staffing
Business Needs Assessment
Roles and Responsibilities
Job Descriptions
Staffing Process
Competency Planning
Competency Management
Competency Needs Identification
Competency Support
20
OE Framework: Human Performance (HP) Plan □ Contractor and ConocoPhillips employees are treated equally with
regard to core values. Risk assessments and work scope execution
□ The organization is fully compliant with all corporate/business unit
System Outline and Checklist HP policies. Routine awareness training is conducted and controls
are in place to support policy understanding and compliance.
plans are jointly developed. Oversight and support is provided
to monitor the contract value and ensure that the work scope is
effectively delivered.
The Human Performance (HP) system describes practices that maximize □ A documented HP workforce strategy is in place and is effectively
□ A formal closeout process is in place and utilized for all key
individual contributions through clearly defined attributes, job performance implemented. This strategy addresses business needs, recruitment
contracts. KPIs and activity logs are used to provide meaningful
strategy, workforce development, demographics and projected
profiles, roles, responsibilities, performance expectations and development feedback on contractor performance.
changes.
plans that meet business needs and employee aspirations. □ The unit has established a culture based on the SPIRIT values,
□ The organization has a process to periodically assess workforce
core behaviors and strategic plans. The unit leadership engages in
capability versus business needs. Staffing and development plans
This system is one of eight systems in the Operations Excellence (OE) cross-functional discussions and is aligned on cultural aspects.
are in place to address any gaps.
Framework and consists of 30 practices that describe the methodology □ A communication strategy and plan exists for all areas/levels.
□ Process work flow maps exist for key work processes and are used
Communication skills development is seen as an important aspect
to maximize workforce contributions. The guidance within this section to develop/disseminate roles, responsibilities and job descriptions.
of personal development at all levels and locations.
Personnel are aware of their own, as well as their team member,
is consistent with the performance characteristics of OE Level 3. The responsibilities. □ The unit has developed and established effective intra-/inter-group
structure is based on the continuous improvement cycle of Plan, Do, Assess collaboration methodologies (i.e., conducting effective meetings,
□ Job descriptions are available for all positions in the organization. A
effective use of email and/or electronic media/collaborative
and Adjust. process is in place to maintain up-to-date job descriptions.
technologies). There is regular cross-functional communication as
□ A documented recruiting process is in place to support the demonstrated by routine meetings, updates etc.
consistent identification and selection of appropriate candidates.
□ The unit demonstrates development plans and programs that
HR and Operations are fully aligned in the implementation of the
enable interpersonal skills attainment and enhancement (e.g.,
staffing process.
leadership essentials, engagement excellence, performance
□ A competency management strategy exists, and critical management). These plans incorporate structured “self-awareness”
competencies are identified. A process exists to provide guidance programs designed to improve interaction at all levels.
on obtaining required/progressive competence levels (e.g.,
curriculum maps).
Assess
Do Assess Adjust □ The competency needs identification process includes
assessment for technical, business and behavioral requirements.
□ Performance measures (metrics and KPI’s) are utilized to drive HP
performance improvements and to ensure that the HP processes
Performance Management System Performance Review – HP Performance Improvement Job performance profiles exist for each position (including core
are operating effectively.
Individual Goal Setting Performance Measures Individual Performance Improvement contractors) and are readily accessible and available.
□ The unit has developed and implemented a benchmarking strategy
Feedback and Coaching Benchmarking Program Performance Improvement □ A competency support system is in place that identifies delivery
that describes the intended processes and methodology for
Review Process methods, venue, geographic limitations & support personnel. The
conducting internal and external benchmarking.
support structure is comprehensive and incorporates all relevant
Competency Development Competency Review disciplines and functions (e.g. Administration, IT, HSE, HR, □ BU management conducts a periodic review of HP system, and
Orientation and Induction Maintaining Competency Technical Authority). this review process provides input into the CI base-lining process.
Competency Program Delivery Training and Competency Compliance □ A process is in place to maintain competency of individuals and
Mentoring Training Program Effectiveness
Do teams (skills requirements, effectiveness of competency delivery
programs).
Contractor Management □ Individual goals (business and development) and individual
Contractor Selection development plans are in place for all ConocoPhillips employees. □ A process is in place to track individual training and competency
Contract Administration Progress is reviewed periodically and adjustments are made (if compliance, attainment, certification, and training completion. All
Work Scope Execution necessary). planned individual training is completed and documented.
Performance and Feedback □ Supervisors consistently provide feedback/coaching to identify □ A process to evaluate training program effectiveness is in place (to
development opportunities and to recognize and build on good establish if the desired outcome was achieved).
Leader Effectiveness
performance. Supervisors/managers receive feedback from the
Establishing Culture
Communication
workforce (e.g., from peers and direct reports through 360° Adjust
surveys).
Collaboration □ A process is in place to address performance improvement across
Interpersonal Skills □ A formal orientation and induction process exists that focuses all individual performance ratings throughout the organization.
on expectations regarding SPIRIT values, behaviors and
□ Program performance improvements are based on lessons learned
performance standards. There is an “on-boarding” process for
from the HP system performance review (within ASSESS above)
all positions to progressively introduce relevant personnel to the
and drive sustainable improvement.
procedures, business processes, administrative requirements and
responsibilities in their areas.
□ A formal competency program is implemented (to cover critical
positions, tasks and activities) via appropriate delivery methods.
These programs recognize and develop skills, knowledge and
behaviors required for a role.
□ A formal mentoring program, targeted at key positions, is in place
for the development of technical and leadership skills.
□ A contractor selection process is in place to ensure contractors
are selected based on commercial, technical, past performance
and HSE aspects of their proposals. Contractor work scope is well-
defined prior to engagement.
□ Contract administration/management plans are in place and
effectively implemented for all key contracts. Contractors/contracts
are characterized/classified and managed based on type of work
and business risk.
21
 OE Framework: Planning and Scheduling Plan □ The medium-term plan has a clearly defined owner and focuses
on execution planning. This plan is accessible to all stakeholders
□ All key P&S processes are addressed in an operating philosophy.
(P&S) System Outline and Checklist All key employees understand their roles/responsibilities related to
and is used as a basis for short-term planning.
□ Short-term planning processes exist with a clearly defined owner.
these processes.
The Planning & Scheduling (P&S) system is a critical part of effective The short-term plan focuses on detailed discipline job plans to
□ A formal strategic P&S implementation plan is in place to support achieve medium-term objectives on a daily/weekly basis (with
operations. The intention of P&S is to create predictable and visible strategic, the above philosophy. This includes impact to other disciplines, minimal break-in work and maximum planning compliance).
people and processes.
tactical and operational plans. The framework describes the way a unit will □ A scheduling process exists and has a clearly defined owner
□ SMART P&S goals, aligned with BU business plans and operating (within BU operations). Frontline and work group leaders schedule
meet commitments, obligations and aspirations. P&S practices identify, philosophy, exist and are adjusted as the business environment and assign work on a regular basis.
integrate and optimize the implementation of activities across the unit. changes.
□ Contractors are completely integrated within the P&S processes
Planning can be considered as a basic leadership process and competency. □ The strategic, tactical and operational planning horizons have clear (inclusive of risk assessments).
P & S practices are typically cross-functional, supporting other OE systems ownerships within appropriate levels of management.
□ All plans are available and are well-understood/agreed by all
□ Formalized governance is in place. This includes stakeholder
and interfacing with various support and functional groups. identification for meetings, decision making (approvals/changes),
relevant stakeholders.
reporting processes and meeting terms of reference. □ Schedule/task briefings are conducted to ensure that all
Planning is the identification of the activities to be performed, methods involved individuals understand their responsibilities, risks, task
□ P&S roles and responsibilities exist for all planning horizons and
and resources to be used for accomplishing the tasks, assignment of are linked to business processes (via RACI charts).
dependencies and communication channels.
responsibility, and accountability and establishment of an integrated plan □ Plans are easily visualized and communicated to ensure that end-
□ P&S is based upon good quality data enablers (like SAP master users understand them entirely.
to bring multiple plans together into one common. Planning is the key to data, equipment criticality and PM processes).
executing any activity and identifies the what, where, why and how. □ Effective planning tools are used to support operational processes Assess
(like Gantt charts) and communicate efficiently.
Scheduling is the process that converts a work plan into a road map, which, if □ A clear process for after-action reviews exists and is consistently
□ Functional planning exists to complete work with available implemented in all phases of P&S processes. Key lessons are
followed, will assure timely project completion. Scheduling identifies the who resources and identify/implement opportunities to shelter losses. shared.
and when. □ A systematic and integrated maintenance planning process exists □ P&S compliance is monitored (through spot checks, planning
to ensure all maintenance work can be completed with minimum metrics, terms of reference). Deficiencies are recognized and
This system is one of eight systems in the Operations Excellence (OE) downtime and costs. corrected.
Framework and consists of 40 practices that support the business vision and □ A systematic shutdown planning process is in place to ensure □ A clear process for peer reviews exists and is consistently
shutdowns are predictable and optimized. implemented in all critical phases of the P&S processes.
drive effective management of daily operations.
□ A systematic project planning process is in place to ensure □ P&S performance measures (with clear accountabilities,
predictable projects execution. definitions, targets and purpose) are in place to identify gaps.
□ Operability assurance is practiced on all major capital projects to These are visible and communicated throughout the organization to
ensure projects are seamlessly integrated into operations. drive P&S optimization.
□ Integrated planning processes exist and include for all functions □ Metrics and KPIs are used to assess P&S performance on
and are utilized to ensure alignment across the unit. a regular basis. These are used to develop P&S strategic
□ All planning horizons are linked through the integrated planning improvement plans.
Plan Do Assess Adjust processes. □ A P&S benchmarking strategy (global, internal, external or other)
□ Standardized input criteria (for integrated planning) exist and are exists and is used to identify and drive P&S process improvements.
Philosophy, Strategy and Goals – P&S Business Prioritization Plan Performance Assessment Planning Renewal consistently used by all functions. □ A structured continuous improvement process is in place to
Philosophy Constraint Management Debriefing and After-Action Reviews Planning Program Adjustment identify any P&S process improvements.
Strategy Work Prioritization Planning Compliance Dynamic Plan Management
Goal Setting and Delivery Risk Management Peer Reviews
Do
Contingency Planning Business Performance Review □ Both dynamic/static P&S constraints within the BU are identified, Adjust
Governance and Roles Cost Management visible and clearly communicated to all stakeholders. □ Strategic improvement plans are used to manage any P&S
Ownership System Performance Assessment – P&S □ A formal and systematic work prioritization process exists and is performance gaps and redefine any goals. All changes are
Governance Model Strategic Planning Horizon Key Performance Indicators governed by a formal MOC process and risk assessment.
used to align and prioritize work against standard criteria.
Roles and Responsibilities Long-Term Planning Process Benchmarking Strategy
□ Risk assessment processes are consistently applied to identify and □ The BU integrated plan is dynamic and is updated to reflect any
Long-Term Plan Review Process
Planning Components mitigate potential areas of concern. These are commensurate with after-action reviews, business driver changes and external/internal
Tactical Planning Horizon the activity hazards and project or operation. events. All updates are assessed to understand all business
Data Enablers
Planning Tools Medium-Term Planning Process
impacts.
□ Contingency planning is a direct result of P&S risk assessments.
Medium-Term Plan It occurs at functional areas and covers materials, resources,
Functional and Event Planning equipment and logistics.
Functional Planning Operational Planning Horizon
Maintenance Planning Short-Term Planning Processes □ Operating cost management principles are embedded within
Shutdown Planning Scheduling Processes P&S and include cost forecasting, tracking and control. The
Project Planning Contractor Integration detail/accuracy of cost estimates increases progressively with
Operability Assurance implementation.
Communications – P&S □ A long-term planning process exists to capture future activities,
Integrated Planning Plan Communication resources and commitments to end-of-life. This process provides
Planning Processes Integration Schedule and Task Briefing line of sight with local/corporate business plans and includes
Planning Horizons Plan Visualization internal/external drivers.
Plan Input Standardization
□ The long-term plan has a clearly defined owner and includes
future projects and significant activities. It is part of the integrated
planning process.
□ A medium-term planning process is in place to achieve long-
term planning objectives. This process ensures cross-functional
alignment and resource optimization within unitwide activities.

22 23
 OE Framework: Asset and Operating Integrity Plan □ Safe operating limits are defined and regularly monitored to
maintain operations within these parameters.
□ The BU has a documented A&OI philosophy that is consistent with
(A&OI) System Outline and Checklist the HSE policy and the BU strategic plan. □ Plant operating/maintenance intervention procedures are clearly
defined, documented and implemented to manage operating
□ A&OI is managed as a line responsibility. The BU leadership integrity.
The Asset and Operating Integrity (A&OI) system is intended to ensure that the supports a culture that promotes sharing of A&OI information.
□ Serious incident risk (drivers) assessments are used to determine
equipment and systems used within operations are operated and maintained □ Risk management processes/procedures exist to identify, assess emergency response needs.
so as to eliminate all losses of containment and other integrity failures that and manage hazards throughout the asset life.
□ The BU emergency response program is documented, resourced,
could result in personnel injuries, environmental harm or financial losses. □ A hazard mitigation/residual risk management process exists. accessible, practiced and communicated.
□ An established risk quantification basis exists to determine the □ Competency assessment is in place to identify skills/knowledge for
This system is one of eight systems in the Operations Excellence (OE) magnitude of risks and appropriate level of risk mitigation. defined roles, to assess employee/contractor competence and to
Framework and consists of 51 practices that ensure that all major hazards □ Documented hazard registers, risk assessments and action plans establish personnel development requirements.
assure timely implementation of identified corrective actions and
are identified, assessed and controlled throughout the life of the asset. The controls.
□ Process safety competence requirements are formally
documented for process safety roles/responsibilities.
guidance within this section is consistent with the performance characteristics □ The BU has a documented process to identify, interpret, □ Qualified/competent personnel are involved in risk identification,
of OE Level 3. The structure is based on the continuous improvement cycle of communicate and implement applicable A&OI regulatory assessment and management.
Plan, Do, Assess and Adjust. requirements.
□ A documented integrity investigation process is used to investigate
□ A process exists to monitor changing legal requirements and site all related incidents and nonconformances.
activities that affect existing legal requirements.
□ A follow-up process for action plans is used for nonconformance,
□ The BU A&OI philosophy is used to derive A&OI goals, objectives investigation and corrective action.
and metrics at each function and level within the organization.
□ Lessons learned from integrity incidents are shared broadly to
Plan Do Assess Adjust □ The BU has a strategic long-term plan (at least three years) and an
annual plan to ensure effective A&OI implementation.
facilitate performance improvements.
□ A&OI goals, objectives, significant risks, nonconformances
Policy and Leadership Structure and Responsibility Measuring and Monitoring Review □ BU leadership endorses the A&OI strategic and annual plan. and integrity issues are effectively communicated to relevant
Philosophy Roles and Responsibilities Program Performance Review Management Review Process
employees and contractors.
Leadership and Culture Technical Authorities
Resourcing
Program Metrics Adjust
Do □ A&OI knowledge sharing exists internally and externally (to share
Risk Assessment and Management Program Ownership Audits □ Design and engineering, operating integrity, and asset integrity best practices, benchmarking results, etc.).
Processes and Procedures Contractor Management Program Compliance roles/responsibilities/accountabilities are defined and documented. □ A documentation/record management process is in place to
Hazard Mitigation and Residual Risk Management Audit Planning and Scope
Risk Quantification Programs and Procedures Documentation and Follow-Up □ Technical authority roles/responsibilities are defined, documented, manage D&E and A&OI documents and records.
Action Plans and Risk Registers Programs and Procedures Implementation approved and communicated. □ Key information is accessible by authorized individuals under
Handover □ Adequate resources are available for the implementation/ routine/nonroutine conditions.
Legal Requirements and Standards of Management of Change
maintenance of the A&OI program. □ Documented inspection, test and maintenance procedures (for
Operation Material Specification
Identification Intervention Control □ There is a single owner of the BU A&OI program; A&OI critical systems) exist.
Monitoring Operating Deviation responsibilities are shared among different functions. □ Critical documentation/software are maintained and modified
Review and Update
□ The A&OI program addresses contractor management and in accordance with the MOC process. Obsolete documents are
Strategic Planning, Goals and Objectives
Key Components ensures that contractors are competent, aligned with A&OI goals, withdrawn and archived.
Goal Setting
Long-Term Planning Design and Engineering - Performance Standards and supervised adequately.
Leadership Endorsement Asset Integrity – Failure and Degradation
Asset Integrity – Critical Protection Systems
□ A range of programs/procedures is in place to manage asset Assess
Note: The A&OI element names displayed in the Operations Excellence hazards and risk. □ An A&OI performance review program is in place to assess the
Asset Integrity – Anomaly Management and Deviation
Asset Integrity – MOC of Repairs and Modifications Framework represent a summary of the Recommend Practice document. □ Procedures are implemented to ensure safe handover of systems/ current state of the program against defined goals/objectives.
Operating Integrity – Safe Operating Limits Refer to the approved A&OI and Well Integrity RPs for the full description equipment for operations (prior to maintenance, construction and □ A&OI program metrics and KPIs are evaluated and reviewed
Operating Integrity – Plant Operating and Intervention of all the practices. commissioning). periodically; they are used to validate and update risk assessments.
Procedures
□ A Management of Change (MOC) process ensures that all changes □ The corporate audit standard is used for auditing program
Emergency Preparedness are identified and associated risks are managed prior to change compliance with legal requirements and D&E, AI and AO standards
Risk Drivers implementation. of operation.
Emergency Response Program
□ Q A/QC material specification processes are in place to ensure that □ A three-tiered A&OI audit (planning and scope) program is used
equipment, services and materials meet design specifications. to verify that the A&OI program is understood, maintained and
Awareness, Training and Competency
Competency Assessment □ Appropriate controls for critical intervention activities are implemented.
Process Safety Competence Requirements implemented. □ Audit findings are documented and corrective actions
Risk Identification Resources
□ Operating deviation procedures are implemented for controlling (documentation and follow-up) are tracked.
Nonconformance, Investigation and Corrective
continued operation when a process safety anomaly exists.
Action □ Programs/procedures are reviewed and updated per a Adjust
Integrity Investigation Process documented schedule.
Action Plan Follow-Up □ A&OI reviews occur annually, are integrated into the BU
Sharing of Lessons Learned □ Design/engineering (D&E) performance standards are defined for management review process, and assess A&OI program strengths
critical equipment/systems. and weaknesses.
Communications – A&OI
□ Specific programs are implemented to prevent and/or mitigate □ A&OI reviews address performance gaps and help define/adjust
Communication Effectiveness
Knowledge Sharing
identified asset integrity failure/degradation mechanisms. BU goals, objectives and strategic improvement plans.
□ Critical protection systems and emergency equipment are tested
Document Control and Records against performance standards at specified intervals.
Documentation Requirements for D&E/AI/OI
Key Information Accessibility
□ An anomaly management and deviation process is used to assess
Inspection, Test and Maintenance anomalies or deviations from performance standards.
MOC of Documentation and Software □ A MOC process is used for repairs and modifications – these are
prioritized according to A&OI risk.

24 25

Plan
Philosophy, Strategy and Goals – M&R
Policy, Philosophy and Vision
Strategy
Goal Setting and Delivery
Maintenance Program
Asset Register
Relative Equipment Criticality Assessment
Equipment Maintenance Strategy
Spares Identification and Management
Maintenance Planning
Specific Equipment Planning
Work Order and Notification Process Design
26
OE Framework: Maintenance and Reliability Plan vendor, industry and/or company requirements and specifications.
□ Vendor maintenance tasks are reviewed by the appropriate
□ The M&R policy, philosophy and vision documents exist and
(M&R) System Outline and Checklist are aligned with the BU operating philosophy that establishes
M&R program direction. Employees understand their roles and
Technical Authority or company subject matter expert to ensure
optimal reliability is delivered. Tasks are managed through the work
responsibilities related to M&R. order process.
An effective Maintenance and Reliability (M&R) system enables safe and
□ Strategic direction is established to effectively translate the □ Equipment record data meets the intent of the Upstream M&R
optimal performance of equipment, efficient utilization of resources and standards. The standards define information requirements to be
M&R philosophy into defined goals and objectives. The strategy
continuous improvement. The performance and integrity of an asset are is communicated, understood and supported throughout the managed in the CMMS (SAP-PM).
dependent on the effectiveness of this system. It contains the maintenance organization. □ Maintenance records are captured and include planned and actual
planning, work execution, review and adjust practices. □ M&R functional goals and objectives exist and are clearly aligned cost (i.e., labor, spares and service), event codes, dates, and
and support delivery of strategic objectives and the BU business equipment measurement data.
This system is one of eight systems in the Operations Excellence (OE) plan. □ There is a process to capture pre-defined (i.e., specific equipment
plan) equipment performance data. The required data is based
Framework and consists of 33 practices that actively and systematically □ There is a formal process for establishing and managing the asset
on equipment criticality, reliability analysis and maintenance
register through the use of the corporate enterprise information
manage equipment and work process performance. The guidance within this system (e.g., SAP-PM). The asset register is complete and reviewed strategies.
section is consistent with the performance characteristics of OE Level 3 as to ensure quality/integrity.
described in the OE Framework. The structure is based on the continuous □ Relative equipment criticality assessment is used to determine Assess
improvement cycle of Plan, Do, Assess and Adjust. equipment strategies and work activities and provides a guideline □ M&R program metrics and targets are used to monitor and drive
for work prioritization. The ultimate goal is to maintain or improve program performance.
equipment reliability while optimizing cost of ownership. □ Equipment metrics and targets are defined and use CMMS data
□ The equipment maintenance strategies are based on the risk to characterize M&R effectiveness and meet the intent of the M&R
identification information obtained during the relative equipment Upstream Global KPI standard.
criticality assessment and reliability analysis process. □ Equipment performance monitoring is used to monitor the health
□ Sparing strategy is established and is based on relative equipment of critical equipment through performance measurements that
criticality to maintain equipment reliability. Spare parts have been trend key indicators. Performance parameters are visible and
Do Assess Adjust identified; usage rates and lead times are known. A documented
process for managing quality assurance and quality control (QA/
analyzed to improve reliability.
□ A structured review process is in place to monitor the performance
QC) of critical spare parts has been fully implemented. of the overall M&R system.
Work Order Management – M&R Performance Indicators – M&R Maintenance Renewal
Maintenance Notification Execution Program Metrics Maintenance Program Adjustment □ A structured process is in place for the development and delivery □ A process exists to routinely review task and work processes to
Maintenance Work Order Execution Equipment Metrics Equipment Life Cycle Analysis of Specific Equipment Plans (SEP). Plans should be based on and ensure compliance with documented procedures and tasks.
Maintenance Change Requests Process Equipment Performance Monitoring aligned to the predetermined equipment strategy. The SEP defines
inspection, testing and maintenance routines and tasks and should □ Data quality assurance systems and processes are implemented to
Maintenance Deferment Process Review Process Performance Optimization – M&R
include PM procedures, work pack structure, QA/QC and ABC effectively minimize errors and issues thus providing a high level of
Equipment Design and New Technology
Maintenance Tasks Maintenance Review equipment criticality indicators. confidence to users and stakeholders.
Benchmarking – M&R
Preventive Maintenance Tasks Tasks and Work Processes □ Work Order and Notification processes should be clearly defined □ A process exists to routinely review maintenance procedures to
Predictive Maintenance Tasks Data Quality and meet the intent of both M&R Upstream standards. ensure accuracy and compliance.
Corrective Maintenance Tasks Maintenance Procedures □ Defect elimination process is established and focused on
Vendor Maintenance Tasks
Defect Elimination
Do eliminating chronic and sporadic reliability issues.
Data and Information Management Defect Elimination Program □ Notifications are closed out and all information is captured as □ Root cause analysis is effectively used to address specific failure
– M&R Root Cause Analysis defined in the unit’s documented maintenance notification issues and events within an overall defect elimination program.
Equipment Records (OEM) process (e.g., Breakdown, Malfunction End Date and Time, Priority,
Maintenance Records Damage Codes, etc.). Adjust
Equipment Performance Data (Static and
□ A documented maintenance work order process is utilized, □ To drive maintenance program adjustment, the M&R system
Dynamic)
and SAP work order fields are populated. A work order backlog review results/opportunities are input into the Leadership and
management process exists and is being followed. The unit work Management continuous improvement process.
order job pack contains the work permit, JSA and work order shop
□ A structured and documented process is in place for equipment
papers (e.g., material list).
life cycle analysis.
□ A maintenance change request process exists that is used
□ A structured continuous improvement process exists to identify
to initiate changes and adjustments/improvements to the
equipment design and new technology solutions for reliability
maintenance program, such as, material changes, procedures, PM
performance improvement.
intervals, scheduling and work duration. Changes are implemented
promptly. □ Benchmarking is used to understand M&R performance relative to
ConocoPhillips similar groups of assets or equipment and used to
□ A maintenance deferment process exists and includes escalation
optimize the M&R system.
of approval, decision criteria, mitigation actions, notifications and
monitoring. Operations leadership team meets routinely to ensure
progress is made to reduce backlog and ensure compliance.
□ Preventive maintenance tasks exist and are based on the Specific
Equipment Plan results. The preventive maintenance tasks reflect
critical maintenance aspects of vendor, industry and/or company
requirements and specifications. Operator routine checks are
performed to monitor the health of equipment.
□ Predictive maintenance tasks exist and reflect critical maintenance
aspects of vendor, industry and/or company requirements and
specifications. Predictive maintenance tasks are based on
reliability-based maintenance principles.
□ Corrective maintenance procedures are documented and available
to execute tasks. They reflect critical maintenance aspects of
27
 OE Framework: Production Surveillance and Plan □ A production alarm management process is in place to identify,
maintain and review the “right level” of production/process/utility
□ All relevant employees understand their roles/responsibilities
Optimization (PS&O) System Outline and related to the PS&O philosophy and support its implementation.
alarms and appropriate thresholds.
□ Performance data is visualized in a fashion that facilitates a rapid
□ A documented strategy exists that effectively allows the translation
Checklist of the PS&O philosophy into defined goals/objectives.
understanding of the current conditions (e.g., ability exists to
quickly identify equipment/wells performing off trend).
□ SMART functional goals/objectives exist and are aligned with □ Performance data analysis is in place and is effectively utilized
The Production Surveillance and Optimization (PS&O) system describes improvement plan, the operating philosophy and business plan. to quickly identify performance gaps (e.g., XPOC for rod pumps,
practices for effective and efficient production monitoring and optimization. □ The BU’s depletion plan exists and is updated periodically to remote turbine performance monitoring, HYSIS). Analytical process
The system is based on the principle of measuring and assessing reflect current business environment and field performance. exists to understand the relationship between current condition
Plan development includes flow stream forecasts to end-of-life, and historical/future performance.
performance against the true potential of the reservoir-well plant system, as contractual drivers and premises for all future major investments. □ Opportunity identification and hand-off occurs and is evidenced
opposed to assessing against commitments, budgets or forecasts. □ The BU’s depletion plan is communicated to all stakeholders (e.g., by production optimization opportunities identified from the
operations, business development, project development, and analysis results and the opportunity tracker.
This system is one of eight systems in the Operations Excellence (OE) F&PA). Complete alignment exists between plan and operational □ A documented process is in place to establish objectives for well/
Framework and consists of 39 practices that assist in protecting base behavior. facility reviews for the specific operating area.
production, lowering costs and optimizing hydrocarbon recoveries. The □ A documented methodology is used for setting production targets. □ Well/facility reviews are effective and efficient and result in defined
guidance within this section is consistent with the performance characteristics This is well-defined and granular to identify loss and corrective opportunities. The reviews apply a structured methodology and
actions. the principles of effective meetings for preparation, participation,
of OE Level 3 as described in the OE Framework. The structure is based on □ Production budget is based on a multidisciplined and probabilistic frequency and meeting management.
the continuous improvement cycle of Plan, Do, Assess and Adjust. understanding of performance drivers and constraints. □ A process exists for opportunity identification and hand-off within
□ A surveillance criticality assessment process exists to identify/ well/facility reviews.
assess critical operating data and implement updates when □ A structured failure analysis/tracking and defect elimination
changes occur to equipment and/or operating conditions. program (as described in the M&R system) is used.
□ The surveillance plan addresses all the life cycle phases and □ Solution design incorporates the results of failure analysis/
is aligned with the depletion plan. Plan development includes diagnostics and previous implementation and is compliant with
reservoir management, production optimization, integrity MOC processes.
management and critical operating parameters monitoring.
Plan Do Assess Adjust □ The surveillance plan is implemented. Data streams are processed
□ Solution implementation utilizes effective project management
principles. The project is integrated into the overall unit planning
as per plan requirements and exceptions/deviations are minimal and scheduling process.
Philosophy, Strategy and Goals – PS&O Operating and Work Procedures Performance Monitoring – PS&O Production Enhancement and controlled/documented.
Philosophy Governance Monitoring Systems Approach □ A Lost Production (LP) tracking system (data capture) is in place
Strategy Production Alarm Management Production Optimization and is used to improve business performance. The BU-specific
Goal Setting and Delivery
Procedure Development
Visualization Process Control Review Do loss categorization is more detailed than corporate requirements,
Compliance
Analysis of Performance Data □ Formal governance is in place to manage operating/work thus providing greater granularity in understanding losses.
Depletion Plan Well and Facility Data Management
Opportunity Identification and Hand-Off procedures. This governance addresses RACI, MOC, document □ An LP data analysis process is in place and addresses frequency
Plan Development Strategy review, standards and guidelines. and type of analysis required.
Plan Alignment Well and Facility Reviews
Storage and Repository □ A structured periodic review process is in place to assess □ An LP opportunity identification and hand-off process exists.
Establish Objectives
Accessibility operating/work procedures (for applicability, consistency, Identified opportunities are reviewed regularly with management
Production Budget and Target Setting Review
readability) that are required for safe and efficient operation. and included in the opportunity register.
Target Setting Production Allocation and Metering Opportunity Identification and Hand-Off
Production Budgeting □ An audit process is in place and rigorously implemented to ensure □ Key performance indicators are utilized to assess and
Measurement Alignment
Loss Mitigation compliance to operating/work procedures. evaluate PS&O system performance and identify improvement
Allocation Quality Assurance
Surveillance Plan Measurement Quality Assurance Failure Analysis □ The well/facility data management strategy addresses all relevant opportunities.
Surveillance Criticality Assessment Solution Design aspects of data management, including storage/retention,
Solution Implementation □ A PS&O benchmarking strategy exists and is applied to assist in
Plan Development governance, quality control and user access. The strategy is the identification of improvement opportunities and drive process
Plan Implementation aligned with the BU’s depletion plan. improvements.
Lost Production (LP) Review
Data Capture □ Storage/repository requirements of critical documents are in place □ A structured PS&O review process is in place and includes the
Data Analysis and effectively implemented. elements of the defined continuous improvement process in L&M.
Opportunity Identification and Hand-Off □ A process to address user access security exists and compliance
can be demonstrated. Data is readily accessible to users. Adjust
System Performance Review – PS&O
□ Metering hardware and communication infrastructure are in place □ A process is in place that integrates all necessary component
Key Performance Indicators
Benchmarking Strategy
to allow for asset monitoring/optimization and regulatory/contractual systems (e.g., reservoir, facility, etc.) and functional/discipline
Review Process
requirements (measurement alignment). teams to achieve optimization goals. Facility design capacities are
□ A comprehensive allocation quality assurance (QA) program is understood, and a process is in place to systematically identify
implemented. Allocation is based on a defined methodology and is areas where capacity/design can be modified to add value.
calibrated regularly with well tests/multiphase metering. □ The unit has a systematic methodology to optimize production and
□ A comprehensive measurement QA program is implemented. The capability of the existing equipment, wells and processing facilities.
BU is compliant with corporate procedures related to inspection, The production optimization methodology is aligned with the
testing and witnessing of measurements. A formal maintenance reservoir management plan and/or the depletion plan.
program is in place for all meters (not just fiscal quality), and there □ The BU has a methodology to review process control systems and
is a process for dealing with measurement errors. ensure intended functional objectives are being achieved.

Assess
□ All critical operating parameters, as defined in the surveillance
plan, are monitored at the appropriate frequencies necessary
to fully understand current operating conditions and trends.
Monitoring strategies are driven by site-specific risk assessments
(e.g., surveillance frequencies).

28 29

Plan
Philosophy and Strategy – OCM
Accounting Policies and Practices
Procurement Policies and Practices
OCM Strategy and Objectives
Goals and Objectives – OCM
Operating Cost Optimization
LRP and Budget Development
Integrated Business Planning
Strategic Planning Processes
Alignment and Structure
Roles and Responsibilities
30
OE Framework: Operations Cost Management Plan □ An effective materials management process is in place as
evidenced by satisfactory asset control, audits, low inventory
□ Operations management ensures that the organization is aware of
(OCM) System Outline and Checklist and compliant with all relevant corporate/local accounting policies
and practices (i.e., capital verses expense, warehouses, etc.). The
carrying costs and no lost production due to inventory management
issues.
Authority Limits Manual (ALM) is understood within the BU. □ In order to support effective asset control, inventory and cost
The Operations Cost Management (OCM) system describes cost management management, the BU is utilizing accurate master data (e.g., asset
and control practices that enable operational costs to be managed such that □ Operations management ensures that BU is aware of and register, cost centers, material/service groups, WBS elements,
compliant with relevant procurement policies and practices. internal orders, etc.) and is fully exploiting system (SAP) capability
value to the company is optimized. OCM practices ensure the effective use Corporate/local procurement policy controls are incorporated into to support analysis.
of financial/accounting systems and supply chain management to deliver unit work processes, including segregation of duties.
□ System enables drill-down capability for analysis/reporting. Cost-
predictable cost performance. □ The OCM philosophy and strategy is defined within the context of driver data can be accessed, organized and analyzed quickly and
the overall BU operating philosophy and is aligned with policies and efficiently with a high degree of confidence.
Cost management is an essential part of the effective management of an procedures. Operating cost objectives are defined within the annual
budget process and support the long-range plan.
operation. It requires due diligence on the part of all personnel who work Assess
□ The BU’s multiyear operating cost optimization plan is evergreen,
in and support the operation to ensure that the maximum value is realized updated annually and includes cost-optimization initiatives focused □ Cost drivers are analyzed in a systematic fashion, and each
for the funds spent in the operation. The scope of OCM includes planning, on correcting adverse trends. The plan is a key input into LRP and budget holder is provided with a performance analysis report that
integrated planning process. shows performance against cost codes. Cost-driver metrics (KPIs)
coordination, control and reporting of all cost-related aspects of a unit’s are routinely utilized to highlight and drive OCM performance
operations. □ A documented LRP/budget development process is in place that improvements.
utilizes an iterative top-down/bottom-up approach. A competency
program is in place to ensure that the personnel involved in the □ Cost performance reviews are collaborative and result in improved
This system is one of eight systems in the Operations Excellence (OE) budget development are adequately trained. The BU integrated alignment and implementation. Performance analysis results are
Framework and consists of 24 practices that assist in improved policy planning and LRP processes are integrated. reviewed and performance deviations are understood.
compliance, resource utilization and cost optimization. The guidance within □ Cost-optimization initiatives are managed through the strategic □ The unit follows corporate definitions (e.g., KPIs, metrics) to
planning process. Critical operating tasks are managed and facilitate internal/global functional group benchmarking (e.g.,
this section is consistent with the performance characteristics of OE Level 3 Procurement, Finance, S&PM). A process is established to
effectively implemented through planning processes.
as described in the OE Framework. The structure is based on the continuous consolidate results from all cost-driver benchmarking analysis to
□ All levels of the organization are aligned to deliver cost objectives identify common strategic opportunities.
improvement cycle of Plan, Do, Assess and Adjust. and targets.
□ A structured OCM system performance review process is in place
□ Personnel at all levels know the key cost drivers in their areas and to monitor system performance. A monthly review is conducted to
understand their roles/responsibilities in cost control. It is clear identify and report noncompliant cost-management activities.
who has accountability for the cost management process for the
short-, medium-, and long-term planning horizons.
Adjust
Do □ Short-term mitigation is based on performance analysis/review
and adjustments are made (e.g., to the appropriate activity plan
Do Assess Adjust □ The MCRS (management control and reporting structure) is
used for cost control/reporting (i.e., addressing cost estimation,
horizon, contract rates, etc). All business impact (shutdowns or
contractual commitments) is understood.
forecasting, actual costs, committed costs, and variance to plan
Cost Control Cost Performance Monitoring Cost Optimization and budget). Cost performance against budget is reviewed on a □ Long-term optimization is based on internal and external
Control and Reporting Performance Analysis Short-Term Mitigation routine basis at each accountable organizational level. Operating benchmarking, cost-driver analysis, and functional performance
Plan Delivery Performance Review Long-Term Optimization cost targets are established and are driving cost control. analysis (e.g., Procurement, Finance, IT).
Company and Contract Labor Cost Driver Benchmarking
Services and Materials □ Costs are managed through a formal SAP or equivalent work order
System Performance Review – OCM process. Cost-optimization initiatives identified in the operating cost
Supply Chain Management System Assessment optimization plan are implemented.
Contract Management □ Accurate and timely hours (company/contract labor) and
Procure to Pay Processes associated costs are collated with a clear understanding of data
Accounts Payable purpose. Personnel time is captured to the level required for the
Materials Management appropriate quantification and characterization of work tasks (e.g.,
to allow productivity metrics, tool time).
Data Management – OCM
□ Service/material spend is quantified and characterized to the
Structure and Master Data
level that enables identification of inefficiencies and improvement
Analysis and Reporting
opportunities (e.g., inventory control, waste reduction, material
handling, transportation and storage).
□ Contract management plans are in place to manage business
relationships for high spend/risk contracts.
□ An effective procure-to-pay process is implemented to characterize
detailed spend on the front end of the procurement process.
Standardized processes for the requisitioning, procurement and
payment of materials and services are effectively implemented.
□ An account payable process is in place and effectively
implemented to ensure invoices are accurate, comply with
contractual terms and conditions, and are paid in a timely manner.
31
 OE Framework: Health, Safety and □ Sustainable Development processes are in place to meet the
requirements of the Sustainable Development Standard and the
□ The Unit has developed training programs to ensure everyone can
perform assigned duties in a safe, environmentally and socially
Environment (HSE) System Outline HSE Due Diligence Standard.
□ Procurement processes are implemented to manage the potential
responsible manner.
□ The Unit’s has an up to date HSE training needs analysis,
for HSE risks associated with purchased products, raw materials, including a documented training matrix. Testing requirements to
The primary objective of the ConocoPhillips HSE Management System and other goods and related services prior to introduction into the demonstrate understanding of internally provided training is part of
is to support implementation of the HSE policy and provide a consistent work environment. the Unit’s training program.
framework and approach to managing HSE issues. This systematic approach □ The Unit has determined which of the risk category ‘Significant’ □ The Unit has the resources and management commitment to meet
helps ensure that business activities are conducted in a safe, healthy and and ‘High’ entries are present in their operations and developed the requirements of their developed training plan.
and implemented mitigation processes that are documented and □ Company specific training requirements covering Occupational
environmentally friendly manner in a way that prevents incidents, near auditable. Risk registers are utilized for tracking and approval of Health, Risk Assessment, Process Safety, Environmental and
misses, injuries, occupational illnesses, pollution and damage to assets. significant and high residual risks. Sustainable Development training are addressed.
□ The Unit can demonstrate compliance with legal requirements, □ Documented processes for the investigation of non-conformances,
This system is one of eight systems in the Operations Excellence (OE) CoP standards and requirements, industry standards, and their incidents, and near misses exist to determine root causes and
Framework and consist of 49 practices that assists in the implementation of adopted design codes. establish preventative and correctives actions.
the HSE Management System and through the continuous improvement cycle □ There is a process to identify and communicate legal requirements □ Documented corrective action plans resulting from non-
and applicable standards of operation. A register of governing conformance, incident, and near miss investigations are in place to
of Plan, Do, Assess and Adjust drives and supports HSE Excellence. agencies and applicable regulations is in place. facilitate follow up and timely closure of corrective actions.
□ Unit has a documented process to monitor changing legal □ Sharing of lessons learned from investigations are communicated
requirements that may impact compliance efforts. via the HSE Network of Excellence sites and use of the HLVE
□ HSE planning and goal setting is achieved by implementation of process.
a formal documented process that engages employees and other
Plan Do Assess Adjust stakeholders. Annual goals, objectives, and a strategic three year
□ The Unit has implemented processes or procedures for internal
communication of HSE&SD information to ensure personnel
HSE Plan is a place. receive and have access to such information.
Policy and Leadership Structure and Responsibility Measuring and Monitoring Review
□ Unit management is actively involved in reviewing and □ Processes and procedures are in place to manage external
Policy & HSE MS Roles & Responsibilities Metrics and Compliance Review Process
communicating progress against the HSE strategic plan, goals and stakeholder relations and communication with regards to HSE&SD.
Communication Communicating and Understanding Trending and Communicating Communication and Follow-Up
Accountability & Responsibility Resourcing IMPACT Reporting
objectives.
□ Unit has a documented process for HSEMS controlled documents
Building HSE Culture Routine Reporting and records and is compliant with Company Records Management
Site Leadership Programs and Procedures Do System.
Program and Procedure Development Audits □ The HSEMS related roles and responsibilities are evidenced by
Risk Assessment Maintenance and Access □ Company Systems, IMPACT and Essential are used to manage HSE
Audit Processes the use of Job Descriptions, RACI Charts and/or embedded roles &
Scope Compulsory Requirements Audit Program and Follow-Up
information. Safety Data Sheets approvals for CoP products are
responsibilities in programs and procedures. obtained by IH&T group, unless Units has been cleared to manage
Participation and Communication
Processes and Procedures A&OI □ Effective methods for communicating and confirming SDS’s locally.
Quantitative Risk Assessments Process Philosophy and Program Development understanding of R&R related to the HSEMS are in place. □ Unit documents, commensurate with risk, are maintained in ‘as
Sustainable Development Processes Design and Engineering □ Unit has the resources and structure in place for effective built’ status and provides adequate design basis data to support
Asset Integrity
Procurement Process
Risk Registers and Documentation Operating Integrity
Plan implementation and maintenance of the HSEMS. risk reviews and analysis work.
 he Unit has a documented HSEMS consistent with CoP HSE
□T □ Programs and procedures are developed to comply with legal
Legal Requirement and Standards of Emergency Preparedness Policy, HSEMS standard, other company standards and applicable requirements, standards of operation, and to manage significant Assess
Operation Emergency Response Plan regulatory requirements. risk. □ The Unit has established leading and lagging metrics to measure
Compliance Training and Competency □ The HSE Policy is widely communicated and understood □ Programs and procedures are maintained and current through a and monitor their operations and activities related to HSE, A&OI,
Identification and Communication by employees, contractors and others who work at site. The defined review process. They are easily accessible to employees and SD to drive performance improvement and compliance.
Regulatory Monitoring Awareness, Training and Competency and contractors.
HSE Policy is also made available as appropriate to external □ Metrics and KPIs are periodically generated and communicated.
Training Program Development
stakeholders. □ The Unit’s procedures are in compliance with the Company Management has the tools to understand trends and impacts and
Strategic Planning, Goals and Objectives Training Needs Analysis and Understanding
Resourcing □ Leadership holds their organization accountable, understand their HSEMS Standard compulsory requirements. uses these to establish future direction.
HSE Planning and Goal Setting
Review and Communication Specific Training Requirements HSE responsibility, and set HSE expectations for their organization. □ A&OI Philosophy and programs have been developed, including □ The Unit is in full compliance with all Company IMPACT reporting
Commitment to HSE excellence is demonstrated. identification of MAH, safety critical elements, and technical requirements for non-conformances, incidents and near misses.
Nonconformance, Investigation and □ Leadership is building an HSE culture and promotes an performance requirements, which address A&OI across the life- □ Data and information is entered into IMPACT in a timely manner so
Corrective Action environment of “stop work authority”, positive HSE recognition, cycle of the various unit assets. Company routine reporting requirements can be met.
Investigation Process lessons learned sharing, and reporting of unsafe acts, conditions, □ Design and Engineering procedures include performance □ Unit audit processes are implemented and provide assessments
Corrective Action Plans and Follow-up and events. standards and condition targets. They address procurement, third for compliance, effectiveness of HSEMS controls, and the ability of
Sharing of Lessons Learned
□ Site leaders understand their HSEMS roles and are actively party services, QA/QC and verification process. ITM programs for the HSEMS to promote continual performance improvement.
Communications involved in HSE activities and work processes. Site leaders engage permanent and temporary equipment and supporting systems are
included. □ The Unit has an implemented audit program covered by a long
Internal Communication their workforce on HSE issues and concerns.
range audit plan with focuses on identification of NC underlying
External Communication □ Scope of risk assessments include activities, normal & non-routine □ Asset Integrity programs and procedures are developed to prevent cause(s), management system failures, and follow up of timely
operations, abnormal operations, emergencies, and life cycle and mitigate integrity failure and degradation of the Unit’s assets, completion of corrective actions and non-conformances.
Document Control and Records stages for projects or products. including focus on critical systems, evaluation of anomalies, trend
Document Control and Records analysis and fitness for service assessment.
Company Systems and Approvals □ Personnel directly involved with or knowledgeable with the Adjust
operation or activity participate in risk assessments. Risk □ Operating Integrity programs and procedures are developed for
As-Building □ The HSEMS review process is aligned with the Unit’s long range
assessments results and hazards are communicated to those normal operations, planned and emergency shutdown, startup and
management of upset conditions. plan and annual budget & goal setting process. Unit Senior
potentially affected.
Management participates in the assessment.
□ The Unit has developed and implemented risk assessment □ The Unit utilizes the Incident Command System and has a fully
implemented Emergency Response Plan covering emergency □ Unit’s assessment actions are incorporated into the HSE three-year
processes and procedures for both formal and informal risk
scenarios which include maximum credible case scenarios. Strategic Plan and management review results are communicated
assessments.
and followed up to monitor progress.
□ Quantitative Risk Assessments where applicable meet local □ Personnel training according to responsibilities, duties, and
governing authority. Unit QRAs for on-shore building design and assignments under the ERP is provided. Emergency response
siting assessments are conducted as per Company requirements. exercises are held to maintain competency of the various response
roles and test the effectiveness of the ERP.

32
 CSH 13-0494 - Revision 3

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