{"id":15678,"date":"2019-06-28T11:00:03","date_gmt":"2019-06-28T19:00:03","guid":{"rendered":"https:\/\/www.palada.net\/index.php\/2019\/06\/28\/news-9426\/"},"modified":"2019-06-28T11:00:03","modified_gmt":"2019-06-28T19:00:03","slug":"news-9426","status":"publish","type":"post","link":"https:\/\/www.palada.net\/index.php\/2019\/06\/28\/news-9426\/","title":{"rendered":"Modernizing Emergency Shutdown Systems Step 2: Build Consensus"},"content":{"rendered":"<p><strong>Credit to Author: Steve Elliott| Date: Fri, 28 Jun 2019 12:00:11 +0000<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-57846 size-full\" src=\"https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/998-20470251_Safety-Stream-Consensus.jpg\" alt=\"\" width=\"1200\" height=\"630\" srcset=\"https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/998-20470251_Safety-Stream-Consensus.jpg 1200w, https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/998-20470251_Safety-Stream-Consensus-300x158.jpg 300w, https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/998-20470251_Safety-Stream-Consensus-768x403.jpg 768w, https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/998-20470251_Safety-Stream-Consensus-1024x538.jpg 1024w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/>The Digital Revolution. Industry 4.0. The Industrial Internet of Things. The 4th Industrial Revolution. Call it what you will but today\u2019s fast-accelerating technological evolution has forever changed the business of manufacturing.<\/p>\n<p>In any digital transformation, investment in safety systems is essential. However, the justification for a <a href=\"https:\/\/www.schneider-electric.com\/en\/work\/products\/industrial-automation-control\/triconex-safety-systems\/\">safety system<\/a> upgrade is seldom a single factor. Many considerations combine to ultimately build a successful case for modernization. I once presented a manager with two choices:\u00a0 Upgrade the legacy safety system or wait until something happens and go out of business. I know that sounds a bit extreme, but it\u2019s not always possible to restart operations after an outage!<\/p>\n<p>This post will look at the critical \u201cbuilding consensus\u201d step for building an effective business justification and win that all-important approval to successfully secure money and resources for your new safety model.<strong>\u00a0<\/strong><\/p>\n<p><strong>Doing Nothing is Not an Option<\/strong><\/p>\n<p>It\u2019s a fact of life that everything gets old and eventually fails. I include myself in that statement. As I mature, everything seems to be getting harder! I now need reading glasses and I can\u2019t run without knee support. Aging is no different for our automation systems. The question is: What can we do about it?<\/p>\n<p>A customer once told me:<\/p>\n<p>\u201c<em>Steve, we have 3 choices: We can do everything. We can do nothing. Or we can do something<\/em>. <em>Rarely do we have the luxury of unlimited budget, resources, and access to the plant to do everything; so that option isn\u2019t always realistic. Conversely, doing nothing should never be an option with safety. The laws of probability dictate \u2018when\u2019 not \u2018if\u2019 something will happen. Doing nothing means you are only delaying the inevitable. Doing something is clearly the best option. We need to be proactive and be prepared for when the inevitable happens.\u201d<\/em><\/p>\n<p>On the basis that we need to do something, and assuming we have decided what funding approach to follow (read <a href=\"https:\/\/blog.se.com\/machine-and-process-management\/2019\/06\/25\/modernizing-emergency-shutdown-systems-step-1-funding-approach\/\"><u>Modernizing Emergency Shutdown Systems: Step 1 Funding Approach<\/u><\/a>), how do we then build consensus for investment decisions? How do we approach the \u201chuman\u201d aspect when building an effective business justification for safety system modernization?<\/p>\n<p><strong>\u00a0<\/strong><strong>Involve the Stakeholders<\/strong><\/p>\n<p>A critical success factor in any migration or upgrade project is how and when you include the many key stakeholders in developing the business case for the safety system upgrade.\u00a0 As we journey towards the digital promised land, it is essential to include parties with a vested interest early in the process. We must fully understand their safety system upgrade needs to help build the business case while also strengthening support for the project.<\/p>\n<p>For instance, it is worth spending time with the different parts of the organization who encounter the safety system to understand their respective challenges. Seeking their input will be more impactful and the project will be more successful if the upgrade helps to alleviate some of their specific challenges or pain points.<\/p>\n<p>At a minimum, ask the following groups to help scope the project:<\/p>\n<ul>\n<li><strong>Operations<\/strong> (bypass management, operational risk assessment<span style=\"text-decoration: line-through\">s<\/span>, alarm management)<\/li>\n<li><strong>Maintenance <\/strong>(proof testing, spares, repairs, maintenance)<\/li>\n<li><strong>Supply Chain<\/strong> (commercial terms, support agreements)<\/li>\n<li><strong>Process Safety<\/strong> (periodic safety reviews, safety system audits)<\/li>\n<li><strong>Engineering<\/strong> (changes, updates, modifications, expansions)<\/li>\n<li><strong>Safety System Data Owners and Users<\/strong> (with cybersecurity now an ever-increasing threat, the IT department is a key stakeholder and must be included. Ignore at your peril!)<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><strong>Set Clear Goals<\/strong><\/p>\n<p>The only good reason to upgrade is because it achieves one or more tangible business goals. The exact goals will vary from company to company so it\u2019s important to clearly identify and quantify your unique goals with these stakeholders. These business goals will become the most significant criteria in selecting a replacement safety system.<\/p>\n<p>To build consensus and win the hearts and minds of your stakeholders, you must work together with each person to develop and agree on the goals for the upgrade. Having a shared outcome where individuals have contributed can wield excellent cooperation and results.\u00a0 For example, some of the goals could include:<\/p>\n<ul>\n<li>Reduction in lifetime cost<\/li>\n<li>Return on investment<\/li>\n<li>Internal rate of return<\/li>\n<li>Net present value<\/li>\n<li>Risk \/ cost of a failure\n<ul>\n<li>Cost of doing nothing vs. cost of upgrading<\/li>\n<li>XXX mt\/day * $\/mt * XX days = $ M sales loss<\/li>\n<li>XXX klb\/day * $\/klb * XX days = $ M margin contribution loss<\/li>\n<li>Raw material consumption loss = XXX mt<\/li>\n<li>Non-compliance contract to customers<\/li>\n<li>Potential permanent customer loss<\/li>\n<\/ul>\n<\/li>\n<li>ROI of tangibles \/ intangibles<\/li>\n<li>Reduction in insurance premiums<\/li>\n<\/ul>\n<p><strong>Run the \u201cPain Equation\u201d<\/strong><\/p>\n<p>One you\u2019ve set your goals, you need to put it in terms of the <strong>cost benefit of change<\/strong> to help stakeholders assess the \u201cpain factor.\u201d I used to think that \u201c<em>logic and data wins every time<\/em>.\u201d How wrong I was! My logical argument to upgrade was based on the business risk (cause) and the business risk (consequence).<\/p>\n<p> <img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-57849\" src=\"https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/Chart-1.jpg\" alt=\"\" width=\"611\" height=\"252\" srcset=\"https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/Chart-1.jpg 611w, https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/Chart-1-300x124.jpg 300w\" sizes=\"auto, (max-width: 611px) 100vw, 611px\" \/> <\/p>\n<p>However, after hitting my head against a brick wall several times, I came to realize that while logic is fine, when someone doesn\u2019t believe something needs to be done, or just strongly disagrees, then no amount of logic, facts or data will convince them otherwise. Try convincing a toddler to do something when they don\u2019t want to!<\/p>\n<p>This is where you need to take a different approach. Typically, there are three reasons to do something:<\/p>\n<ol>\n<li>We are <strong>Forced<\/strong> to act (in these cases, people will see it as a cost):\n<ol>\n<li>Something breaks<\/li>\n<li>Audit violation<\/li>\n<li>New regulations e.g. safety standards updates (e.g. IEC61511 Edition 2, cybersecurity standards e.g. IEC62443)<\/li>\n<li>Corporate edict that says you must comply<\/li>\n<\/ol>\n<\/li>\n<li>There is an <strong>Opportunity<\/strong> to change:\n<ol>\n<li>Another related event is taking place<\/li>\n<li>The timing of another project creates synergy<\/li>\n<li>Part of the plant or operating unit becomes available<\/li>\n<\/ol>\n<\/li>\n<li>It may be part of a <strong>Strategic<\/strong> decision:\n<ol>\n<li>Means of gaining competitive advantage<\/li>\n<li>Aligns with the corporate future vision<\/li>\n<li>Specific investments for long term gains<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p>Fundamentally, it\u2019s about the <strong>cost benefit of change<\/strong>. I was told years ago by a customer that the justification to upgrade is a simple equation that boils down to this:<\/p>\n<p><em>PAIN_1 &gt; PAIN_2<\/em><\/p>\n<p>When<em> \u201cPAIN_1 (production risk) of doing nothing multiplied by the remaining life of the plant (years)\u201d <\/em>is greater than<em> \u201cPAIN_2 (cost) of the upgrade including production losses resulting from upgrade transition\u201d <\/em>it\u2019s time to upgrade<em>.<\/em><\/p>\n<p>Here are some examples:<\/p>\n<p><strong>Where the upgrade makes sense<\/strong><\/p>\n<ul>\n<li>Production loss of $2M per year are directly linked to obsolete equipment x 15-year plant life = $30M= PAIN_1<\/li>\n<li>Upgrading system costs $5M in hardware\/services + $10M in lost production during transition $15M = PAIN_2<\/li>\n<\/ul>\n<p><strong>Where the upgrade doesn\u2019t make sense<\/strong><\/p>\n<ul>\n<li>Production loss of $2M per year is directly linked to obsolete equipment x 5-year plant life = $10M= PAIN_1<\/li>\n<li>Upgrading system costs $5M in hardware\/services + $10M in lost production during transition $15M = PAIN_2<\/li>\n<\/ul>\n<p>One trick is to correctly quantify the <strong>pain<\/strong> with the people who <strong>\u201cown the pain\u201d <\/strong>because opinions will vary by owner.<\/p>\n<p><strong>Build Trust<\/strong><\/p>\n<p>Another key tool in your building consensus toolbox is the <strong>discovery interview<\/strong>. Discovery interviews are a great way to gather relevant information to build into your winning business case. Basically, you want to understand three aspects:<\/p>\n<ul>\n<li><strong>Current (where you are today): <\/strong>\n<ul>\n<li>How is the job currently done?<\/li>\n<li>What gaps or problems currently exist?<\/li>\n<li>What systems are utilized to help automate or simplify the current method of working?<\/li>\n<\/ul>\n<\/li>\n<li><strong>Desired (where you want to be):<\/strong>\n<ul>\n<li>What changes would the individual like to see in this area?<\/li>\n<\/ul>\n<\/li>\n<li><strong>Impact (how will the business be impacted):<\/strong>\n<ul>\n<li>Change is hard, so there should always be a reward for change.<\/li>\n<li>If you can get down to true metrics (e.g. time saved, errors eliminated, manual steps automated, efficiency etc.) then you can quantify the benefits.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Another good way to win the hearts and minds of your stakeholders is to identify the current restrictions or limitations that impact everyone\u2019s day-to-day job with respect to their interaction with the safety system.\u00a0 A great way to do this is to focus on a specific given task (e.g. apply a maintenance bypass before removing a device from service) and then follow up with open \u201cdiagnostic questions.\u201d Try using some of the following prompting question with, \u201cIn your opinion, what makes this &#8230;\u201d<\/p>\n<p> <img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-57848\" src=\"https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/chart-2.jpg\" alt=\"\" width=\"635\" height=\"165\" srcset=\"https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/chart-2.jpg 635w, https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/chart-2-300x78.jpg 300w\" sizes=\"auto, (max-width: 635px) 100vw, 635px\" \/> <\/p>\n<p>If possible, for each question, try to identify a unit of measure and quantify it by:<\/p>\n<ul>\n<li>&#8230; the <strong>time <\/strong>it takes to &#8230;<\/li>\n<li>&#8230; the <strong>likelihood<\/strong> of &#8230;<\/li>\n<li>&#8230; the <strong>number<\/strong> of [x] to &#8230;<\/li>\n<li>&#8230; the <strong>amount<\/strong> of &#8230;<\/li>\n<li>&#8230; the <strong>frequency<\/strong> with which &#8230;<\/li>\n<li>&#8230; the <strong>amount of waste<\/strong> due to &#8230;<\/li>\n<li>&#8230; d<strong>owntime <\/strong>due to &#8230;<\/li>\n<li>&#8230; <strong>y<\/strong><strong>ield loss<\/strong> due to &#8230;<\/li>\n<li>&#8230; the <strong>percentage <\/strong>of &#8230;<\/li>\n<li>&#8230; the <strong>cost<\/strong> of &#8230;<\/li>\n<\/ul>\n<p>As you go through this process you will gain both the trust and insight from the various stakeholders involved with safety systems in one way or another.<\/p>\n<p><strong>TIP: Credit contributors in the business case to make sure that their efforts and input are recognized!<\/strong><\/p>\n<p><strong>Plan Resources<\/strong><\/p>\n<p>An often-overlooked consideration of any aging system is the challenge of finding resources with the requisite skills, knowledge and competency to engineer, maintain, support and manage the safety system. It is important to identify the management activities necessary to ensure functional safety objectives are met. If compliance to international standards such as IEC 61511* is a prerequisite, then there is a requirement to ensure that <em>\u201cPersons, departments, organizations or other units which are responsible for carrying out and reviewing each of the SIS safety life-cycle phases shall be identified and be informed of the responsibilities assigned to them<\/em>\u201d.\u00a0 Also, \u201c<em>Persons, departments or organizations involved in SIS safety life-cycle activities shall be competent to carry out the activities for which they are accountable.\u201d <\/em><\/p>\n<p>*For more information, please refer to IEC 61511 Chapter 5 \u2013 Management of Functional Safety, clause 5.2.2 Organization and Resources<\/p>\n<p>It\u2019s important to plan for knowledge retention when considering an upgrade. The loss of key knowledge from the system integrator or equipment manufacturer is not easily recaptured!\u00a0 Training system experts much beyond the expected life of the product may not be cost effective or even feasible (e.g. try finding computers with serial ports!).\u00a0 This is an extremely important point to consider as part of the winning upgrade justification and essential in the \u201cbuilding consensus\u201d step.<\/p>\n<p>In the next post, we will take a closer look at <strong>Step 3 \u2013 Identify the Best Time to Upgrade<\/strong><\/p>\n<p>Miss the first posts in this series?\u00a0 Click below to read them now.<\/p>\n<p><a href=\"https:\/\/blog.se.com\/machine-and-process-management\/2019\/06\/14\/modernizing-emergency-shutdown-systems-7-steps-to-approval\/\">Modernizing Emergency Shutdown Systems: 7 steps to approval<\/a><\/p>\n<p><a href=\"https:\/\/blog.se.com\/machine-and-process-management\/2019\/06\/25\/modernizing-emergency-shutdown-systems-step-1-funding-approach\/\">Modernizing Emergency Shutdown Systems: Step 1 Funding Approach<\/a><\/p>\n<p>For further reading:<\/p>\n<p> <a href=\"https:\/\/go.schneider-electric.com\/NAM_IBU_US_201803_Media_01-5-Steps-to-Enhance-Process-Safety-IIoT-WP-PF-LP.html?source=Advertising%20-%20Online&amp;sDetail=Blog\">Download IIoT for Process Safety White Paper<\/a><a href=\"https:\/\/go.schneider-electric.com\/NAM_IBU_US_201803_Media_01-5-Steps-to-Enhance-Process-Safety-IIoT-WP-PF-LP.html?source=Advertising%20-%20Online&amp;sDetail=Blog\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-57845 size-thumbnail\" src=\"https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/6-26-2019-1-45-12-PM-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/6-26-2019-1-45-12-PM-150x150.jpg 150w, https:\/\/blog.se.com\/wp-content\/uploads\/2019\/06\/6-26-2019-1-45-12-PM-125x125.jpg 125w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a> <\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/blog.se.com\/machine-and-process-management\/2019\/06\/28\/modernizing-emergency-shutdown-systems-step-2-build-consensus\/\">Modernizing Emergency Shutdown Systems Step 2: Build Consensus<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/blog.se.com\">Schneider Electric Blog<\/a>.<\/p>\n<p><a href=\"https:\/\/blog.se.com\/machine-and-process-management\/2019\/06\/28\/modernizing-emergency-shutdown-systems-step-2-build-consensus\/\" target=\"bwo\" >http:\/\/blog.schneider-electric.com\/feed\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Credit to Author: Steve Elliott| Date: Fri, 28 Jun 2019 12:00:11 +0000<\/strong><\/p>\n<p>The Digital Revolution. Industry 4.0. The Industrial Internet of Things. The 4th Industrial Revolution. Call it what you will but today\u2019s fast-accelerating technological evolution has forever changed the business of&#8230;  <a href=\"https:\/\/blog.se.com\/machine-and-process-management\/2019\/06\/28\/modernizing-emergency-shutdown-systems-step-2-build-consensus\/\" title=\"ReadModernizing Emergency Shutdown Systems Step 2: Build Consensus\">Read more &#187;<\/a><\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/blog.se.com\/machine-and-process-management\/2019\/06\/28\/modernizing-emergency-shutdown-systems-step-2-build-consensus\/\">Modernizing Emergency Shutdown Systems Step 2: Build Consensus<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/blog.se.com\">Schneider Electric Blog<\/a>.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[12389,12388],"tags":[13245,12540,22131,22114,22132,12512,12515,12516,12508,4713,12858,713,17882],"class_list":["post-15678","post","type-post","status-publish","format-standard","hentry","category-scadaics","category-schneider","tag-automation-and-control","tag-digital-transformation","tag-digital-transformation-of-industries","tag-emergancy-shutdown-systems","tag-furture-of-automation","tag-iiot","tag-industrial-internet-of-things","tag-industry-4-0","tag-machine-and-process-management","tag-migration","tag-modernization","tag-safety","tag-safety-systems"],"_links":{"self":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/15678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/comments?post=15678"}],"version-history":[{"count":0,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/posts\/15678\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/media?parent=15678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/categories?post=15678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.palada.net\/index.php\/wp-json\/wp\/v2\/tags?post=15678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}