Digital control of work: Demonstrating the value
September 17, 2020
September 17, 2020
When it comes to improving the safety and efficiency of maintenance activities, few digital investments beat a well-implemented 'electronic control of work' solution. These tools can be much more efficient than paper-based systems and offer the key benefit of reducing human errors. But… they come with challenges, too—and 'switching' over to one of them can be tricky. So how can executives prepare and how can they demonstrate value in their business case?
By James Brown, Pete Lempriere, and David Parry, Accenture
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It has been 32 years since the Piper Alpha oil production facility exploded in the North Sea, tragically killing 167 people. Financial losses reached almost £2b ($5b in today's money). A major cause was an inadequate control of work system; the process and procedures used to ensure maintenance activities are risk assessed, conducted, and handed over safely with hazards isolated. Similar deficiencies have led to submarines sinking, overhead powerline accidents, fires, and explosions involving acid tanks, polyethylene reactors, and a gas pipeline, to name a few.
Since Piper Alpha, things have changed. New digital work control systems promise to bring increased efficiency and improved operational safety. But are these promises realistic? And, if so—how can executives realize them? How should you go about selecting the right tool, what obstacles might you face, and how can you overcome them? Electronic systems bring many benefits (and some disadvantages) but are they worth the investment?
Adoption of digital control of work systems has accelerated in recent years as businesses recognize the benefits as part of broader digital transformations. While uptake has been strong in the oil, gas and chemical industries, others have been slower to invest. Pharmaceuticals, mining, metals, aerospace, and utilities companies are starting to see the benefits. However, there is little evidence that food and beverage, construction and manufacturing companies are making the change, hindered (perhaps) by concerns over costs, connectivity, data security, safety or employee and middle management buy-in.
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Electronic systems aim to address all the above limitations while also giving users:
Clients regularly ask us to help them screen and select HSE software tools based on their specific needs and existing digital ecosystem. There are numerous providers to choose from, each with their origins, strengths, and limitations. Niche providers focus on tried and tested control of work solutions based on their in-depth expertise and operational experience. On the other hand, generic providers don't have the same niche expertise but offer well-known brands and broader solutions that incorporate environment, health, asset management, and other functionalities such as turnaround planning, helping reduce integration costs.
We would always recommend seeking support from experienced independent practitioners who have worked with the prominent vendors, have implemented various systems, and can match your needs with available solutions, helping you to navigate vendor sales pitches. They can help you decide whether to focus on a single vendor to provide most of the functionality you need or choose "Best of Breed" tools for each process.
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Of course, not all new ways of working deliver the value expected, particularly those that are so human-centric. Here are some obstacles and some tips for success.
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Recent research has shown that a mid to sizeable onshore facility can significantly improve safety and save around $500,000 each year through better work packaging, conflict identification, auditing, incident avoidance, reduced plant downtime, and reduced time to plan, reuse and issue risk assessments, isolations and permits. We have seen a chemicals client cut permit waiting time by 45 minutes, and an oil and gas company increases operational efficiency by up to 50 percent. We also helped a nuclear power plant save two hours per preventive maintenance work order, reducing time for work package related activities by 75 percent.
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15-20%
savings per year realized through a reduction in contractor spend.
2-3%
production increase generated through reduced planned and unplanned shutdown duration.
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The business case sounds strong, right? However, many buyers struggle to demonstrate that they'll drive savings whenever they can't prove there will be a direct reduction in costs or workforce numbers. A recent client undertook a broader drive to 'go paperless,' implementing digital control of work as well as digital access to operating procedures, manuals, and drawings while onsite. The cost for a site with 60 end-users was around €2 million for things like industrial tablets, connectivity, process development, and change management support. This cost will likely be much lower for future sites (50 percent or less). Savings of €1.5 million per year were realized through a 15-20 percent reduction in contractor spend, a 5-10 percent reduction in employee overtime and a 2-3 percent production increase generated through reduced planned and unplanned shutdown duration.
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About the authors
James is an Industry Senior Principal at Accenture within the Industry X Digital Manufacturing and Operations practice based in the UK. He is an HSE and Process Safety specialist, helping organizations improve HSE and Operations performance using digital technologies. James has over 22 years of experience in operations, engineering, and consulting. Please get in touch with James via LinkedIn.
Peter is an Industry Senior Principal within Accenture's Digital Manufacturing and Operations practice based in the UK. Peter is a Chartered Manager and Engineer having 30+ years of experience in upstream and downstream assets within the oil and gas industries. With Accenture, he has delivered multiple digital workforce deployments, industry tracking, and analytics solutions. Please get in touch via LinkedIn.
David is an Industry Principal Director within Accenture's Digital Manufacturing and Operations practice based in the USA and leads our Mobile Workforce Practice. David has 30+ years in both industry and technology, delivering information solutions that digitally transform office and fieldwork execution. Please get in touch via LinkedIn.