Change Management - Overcoming
Challenges to Implementation
Topics
•
What is Change Management?
–
Process safety management
–
Non-PSM change management
•
Lean Process
–
Kaizen
Understanding the Issue
•
Process Safety Management (29 CFR 1910.119)
–
Objectives:
•
Prevent unexpected releases of toxic, reactive, or flammable
liquids and gases
•
Create a safe and healthful workplace (inside the fence line)
•
This regulation is specific and does not apply to
most situations involving change (for now)
•
Most of these “Management of Change” programs
face a variety of challenges
–
Too similar to PSM MOC
–
Too broad
–
Too slow
Encana’s Development Process
•
Encana’s Management System (Ethos) mandated
a “MOC process” for all applicable work.
•
The PSM MOC process was too cumbersome for
most of the changes that were occurring.
•
A group of Lean practitioners were assembled to
facilitate a solution.
•
Facilitated by EHS, Operations led
•
Held a Kaizen event over 2 days to determine the
scope of the problem and a recommended
solution.
TOOLS:
Process
Project & Change Management
Statistical Analysis
Visual Controls
TIMWOOD is the acronym that describes the 7
different kinds of waste. The goal is to identify
where TIMWOOD is to ELIMINATE the root causes.
Lean @ Encana means :
Kaizen
Identify the problem/opportunity and detail the business case and
problem statement in the Project Charter. Allocate sufficient
resources.
D
EFINE
Baseline the current performance and customer specifications.
Collect of all potential variables/inputs impacting the overall output.
M
EASURE
Quantify and link the critical variables to the customer demand.
A
NALYZE
the plan is in place to maintain the benefits
C
ONTROL
I
MPROVE
Pilot solution to confirm critical variables impact and
implementation risks have been mitigated
Set a plan is in place to maintain the benefits
The DMAIC methodology provides a flexible but consistent problem solving
approach that can be applied through the business.
A Mindset
Continuous
improvement
methodology
Toolset to improve
thinking and
processes
Structured approach
to eliminate waste
and variation
TIMWOOD
T
ransportation
I
nventory
M
otion
W
aiting
O
verproduction
O
verprocessing
D
efects
Method
Measurement
Materials
Quality
People
Cause
Effect
Machine
Environment
Fishbone Diagram
19 17 15 13 11 9 7 5 3 1 0.4 0.3 0.2 0.1 0.0 Sample Pro por tion _ P=0.1367 UCL=0.2709 LCL=0.0025 1 1Tests performed with unequal sample sizes
P Chart of D of I Errors: No Name USA
25 22 19 16 13 10 7 4 1 6.50 6.25 6.00 5.75 5.50 Observation Ind ivid ual Va lue _ X=5.969 UCL=6.346 LCL=5.591 1 1 1 I Chart of Rig Release to Spud
Control Charts
Value Stream Mapping
Date: 01/16/2008
Failure SeverityOccurrence DetectionRPN Mitigation AccountableDue Crew do other things in addition to consolidation
or expansion. If emergency occurs, or schedule changes, we may not have the ability to react. Can delay expansion.
5 5 1 25 Dedicate crews to "other" work; Keep crews on bid work. Use a "roustabout" crew on T&M for these variable situations. Develop and execute plan. Jeff C. 02/15/2008 Bid specs are missed - higher costs (go on T&M)
8 7 10 560 Review RFP process and understand what type of details they'd want to see for accuracy. Meeting with potential bid winners prior to discuss scope and detail of work. Add feedback loop process after bid is complete. Perform audit of process after 90 days. Jerry 02/15/2008 Inability to "push" crews to get project done in a
timely manner when the need for short cycle time is required.
8 7 5 280 Implement "bonus for early completion" when needed. Establish bonus rate / amounts (or T&M rate) during RFP discussion with contractors if EnCana needs the project done in an earlier time frame Jeff C.and Jerr 02/15/2008 Teamwork between companies decreases -
leading to longer cycle times and loss of qualified help
8 9 3 216 Direct contractors to charge other contractors when their equipment or materials, etc. are needed. Communicate during implementation of bid process with contractors. Jeff C. 02/15/2008 Companies have negative feeling - negatively
disrupting EnCana's construction- longer cycle times, public image, etc.
9 2 2 36 No drop in per-AFE costs 1 1 1 1 New contractors to program have more informational requirements. EnCana doesn't have the staff to support - delays in completion time and we incur additional costs due to T&M charges
8 3 2 48 Quality suffers due to focus on cost control to
stay under bid price 7 5 2 70Develop scorecard tied to incentives. Design incentive structure prior. Bonnie 02/15/2008 Not enough work for crews to stay busy on bid
work - contractors pull out - not available to do EnCana work - delays and additional costs.
7 1 3 21 Process: allow contractors, when bid work is not available, allow them to do roustabout T&M work to keep busy. Communicate with contractos. Jerry and Jeff C02/15/2008 0
Define
There are basically
three
types of “change” that occur in the
field (workplace):
1. When you are performing normal, day-to-day work such
as changing out a tool (i.e. a 24” wrench for a 36”
wrench), changing who is going to swing a hammer,
having a regular shift change of employees or
contractors, etc., or
2. When you are dealing with a qualifying change within
the fence of a PSM facility, or
D
efine- Operational Definitions
Anything not in like-kind that
deviates from established process
(Including: Safety Issue, affects to
other operations, changes to
P&ID(s), changes forced by
regulations, emergencies halting
operations)
Anything not in like-kind being
added to the field for first time
that results in change in safe
operating limits and/or safety
system
MOC “Light”
Full PSM MOC
Regular” work – No
MOC
In Scope
Out of Scope
Out of Scope
Anything in like
kind and/or
existing
design/process
Kaizen Team established definitions for “change” to focus
scope of event.
All groups affected by MOC
Light
Affected by full MOC
•
Production, Facilities & Construction
Not affected by full MOC
•
Drilling, Completions, & Location
Construction
Examples of when a MOCL is needed
•
Anything not in like-kind that deviates from established process
–
Deviating from a Standard Operating Procedure
•
Safety Issue
–
Want to temporarily operate outside of current safety
parameters/practices
•
Affects other Operations
–
By adding another engine we will need to update an environmental
permit
•
Changes P&ID
–
Modifying an electrical system diagram
•
Regulations forcing change
–
DEQ changes a permit that results in Encana changing our
procedure/equipment
•
Emergency / temporary change
Measure
•
Reviewed OSHA operational definition.
•
Reviewed internal process: What do we do?
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Variable by team/person
–
A similar process for non PSM-MOC was begun in 2012
but is not currently used or fully implemented
•
“Didn’t know MOC form existed”
•
Process was not communicated
–
Wind River uses the IMS system for some MOC issues
•
Wind has a dedicated MOC Coordinator
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MCBU Drilling group is piloting “light” version
•
Reviewed external processes: What do others do?
–
Systems for BP, Conoco, Devon, and Chevron were
reviewed
Making It Stick
•
What is the reputation of your implementers?
•
According to PayScale's most recent survey,
employee turnover rate among Fortune 500
companies is greatest in the IT industry.
13
Barriers to Empowerment
Source:
Reprinted by permission of Harvard Business School Press. From
Leading
Change
by John P. Kotter. Boston, MA. 1996, p. 102. Copyright © 1996 by the
Control - Making It Stick
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Field employee and “Responsible Person”
buy-in is essential
•
Operations owns it
•
KISS principle at work
–
Shorter approval times
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Affected parties better informed
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Better close-out percentage
