Outsourcing Essay Example | Topics and Well Written Essays - 500 words - 7

Outsourcing - Essay Example This business format demands a website which enables Lisa and Mark to gather goods from manufacturers, for instance, Stu Rees, 37, who dwells in Santiago. Similar to Mark and Lisa, Stu Rees is an attorney with inclination and love for cartooning. He undertakes the outsourced designing for Billable Hours cards. The company also outsources some of its works to professionals in Greece and Canada very cheap rates. The company considered the option of outsourcing its job to online experts due to challenges of having permanently employed staffs. Allocation of jobs online is much quick and effortlessly manageable as compared to having permanent staff members. While most small business experience fluctuating income and are much more exposed to risks such loses. The company notes that outsourced jobs are effectively conducted delivered within the timeframe desirable to business conditions. Currently, Billable Hour is a small business that Lisa can manage singly, but even as it expands Lisa notes that would resist the test of hiring new workers due to: workers health benefits, state payroll taxes , compensation insurance and compliance work place requirements. The qualitative factors that have prompted the company to outsource its jobs originate from the employment challenges directed by the current policies on labor process in America. The hurdles are ritualistically high and cannot be adopted by emerging firms. Similarly, people growingly desire to be independent and managed own firms. This was triggered by the unexpected turn of events under which many people were rendered jobless after economic downfall. Uniquely, Billable Hour deals with soft copy goods that easily deliverable by internet technology. The internet infrastructure exposes it to a wide variety of market players that contribute hugely to the design and successful growth of the company. This model of outsourcing also ensures allocation only

Analysis of the Allegory Of The Cave, Delphic Quest, and Aristotle's Essay

Analysis of the Allegory Of The Cave, Delphic Quest, and Aristotle's On The Soul - Essay Example Eventually a prisoner is released and the allegory details his progression out of the cave and into higher states of knowledge. It’s abundantly clear that the prisoners shackled in the cave represent humans at beginning stages of cognitive knowledge. Plato urges the reader to consider the prisoners’ predicament in terms of knowledge, ‘Now consider what would happen if their release from the chains and the healing of their unwisdom should come about in this way.’ As the prisoner is released from the shackles and realizes that the fire and statues have caused the shadows, he has then metaphorically passed from the imagining stage of reason to the belief stage, as evidenced in N. Jordan’s chart. However the prisoner is still unaware of the world outside the cave and as he exits the cave he gradually becomes privy to a higher stage of cognitive development, â€Å"At first it would be easiest to make out shadows, then the images of men and things reflected in water, and later on the things themselves. After that, it would be easier to watch the heavenly bodies and the sky itself † As the prisoner exits the cave, man is correspondingly shown to have entered the thinking stage of cognitive development, where mathematical concepts are implemented through reason to construct and understand the world. The prisoner then enter the final stage of cognitive development where they witness the actual objects that witness the cave from the outside, the actual objects that cause the reflections in the water, and ultimately the sun itself, â€Å"And now he would begin to draw the conclusion that it is the sun that produces the seasons and the course of the year and controls everything in the visible world.† This final stage is the Form of the Good, this seems to correspond to Plato’s concept of the idealized forms and Socrates concept that the unexamined life is not worth living, to conclude that the

Night of Scorpion Essay Example for Free

Night of Scorpion Essay Night of the scorpion written by Nissim Ezkiel is an interesting poem and the poet brings about a very appealing contrast between good and evil in it; altogether giving the poem an essence of equality. The poet makes it a trouble-free task for the readers to visualize the scenes with the appropriate use of various imageries. He has also done a marvelous work of adding various different senses into the poem. All the senses, visual, smell, internal feelings and sound have been included. In this poem we can see the scenes vividly with the help of lines like,† †¦to crawl beneath a sack of rice,† and,† Peasants came like swarm of flies. Nissim Ezekiel is able to keep are mind alive and engaged the entire duration of the poem with the help of lines like,† Peasants came like swarm of flies. † When we read this line, we know that it is a simile and it help us to see how the peasants came along. But when think deeper we realize that it also shows us that the narrator does not admire the kind of care that the villagers are showing, he just wants them to leave him and his family alone. The reason the villagers are compared to flies is to show exactly how exasperating they are and that they are not welcome, just like flies. The poet has made this poem complex, which is always a good thing. This can be proved because to describe the scorpion he uses words like â€Å"diabolical† and â€Å"The Evil One† which show it as a demonic creature. On the other hand he also used lines like,â€Å" driven him to crawl beneath a sack of rice† and â€Å"†¦ risked the rain again,† which brings about a contradiction as this line shows that the scorpion is not at all the villain, it is simply scared. Among the many figures of speech used in this poem onomatopoeia is one of them. He has used this figure of speech efficiently, enabling us to hear the constant noises that were made. The poet write that the villagers â€Å"buzzed the name of god† which again stresses on the point that the noise and commotion being made by the villagers was not at all welcome. The poet further draws the interest of the reader by using a figure of speech to convey this message and not doing it directly. He has also written â€Å"They clicked their tongues,† which is another instance of onomatopoeia. The element of smell is brought about because the poet has introduced candles and burning oil in lanterns in his poem as well. Nissim Ezekiel has made the mother’s experience of getting bitten by the scorpion sound excruciating and eternal. He has conveyed this by using some very descriptive writing, example, â€Å"May the poison purify your flesh of desire, and your spirit of ambition,† Nissim Ezekiel successfully built the tense atmosphere by using just a short sentence,â€Å" My father, sceptic, rationalist, trying every curse and blessing,† There is also an instance in which the poet uses alliteration,â€Å" I watched the flame feeding on my mother. This line has also been able to build up the complex nature of the poem because of its dual meaning. We can simply say that the ‘flame’ refers to flame of the paraffin or we can also say that ‘flame’ refers to the scorpion’s poison. The poem ends sanguinely, with the mother surviving and being thankful to god for making her suffer and not her children. After all the tense moments of pain, suffering, torture and fear, the poem has a very touching and warm ending which proves the mother’s love for her children.

Themes of the Odyssey :: essays research papers

Throughout the Odyssey there are many themes that Homer uses to portray different people and events. To name a few, there are the themes of Betrayal and Revenge,Greed and Glutony, Hospitality, Role of the Gods and Wealth (the amount of money one had determined the status he held in the greek society, and this explains Odysseus's love for plunder). To start with the most common one, the role of the gods, one can see many such allusions thrown all over the odyssey. The epic poem starts in Mt.Olympus where the gods are discussing what will happen to Odysseus , Master mariner and warrior of Ithaka. As it so happens he is on the island of Kalypso, one of the lesser gods. Also, as Odysseus travels, one learns about the role of the gods in not only his travels but other peoples ones too. Agisthos, the man who stole Agamemnon's wife and killed him, was sent a message from Zeus by Hermes, giving him the information of what will happen if he kills him. Also, Menelaus, the red haired king of war, had to wrestle with a sea-god in order to gain acceptance and sail all the way back to his homeland of Sparta, and find news about the rest of his companions. He would not find out about his brothers demise until he got home. The next two themes are interelated, Betrayal and Revenge, with Greed and Glutony.THe gods punish those who show greed and glutony, but that does not mean that they cannot be punished as well. A prime example of this is when Posiedon is out feasting among the 'sun-burnt' races that were deemed to be his own. While he was feasting, Odysseus escaped the island of Kalypso, something that Poseidon did not like and was to late to stop from happening. While he was being gluttanos and eating all that food, Odysseus had escaped. Another example would be the murder of Agamemnon. Agisthos was greedy and wanted money and status, as well as Agamemnon's wife and Agamemnon's wife betrayed Agamemnon when she went off with him and even more so when they both killed him. However, the theme of Betrayal is often closely followed by the theme of Revenge. Agamemnon's son, Orestes, would go back and avenge his father's death, killing Agisthos and his mother even though later on in greek mythology he knew he would be punished for killing her.

Compagnie du Froid Analysis Essay

Memorandum Campagnie Du Froid is a summer ice-cream business founded in 1985 by the father of Jacques Truman. In 2007, after the passing of his father, Jacques Truman took over the business and emphasized an aggressive growth strategy. By 2009, Campagnie Du Froid was a market leader in the eastern part of France, northeastern coast of Spain, and northern Italy. Each region had its own manager and the main headquarters was located in Paris. Jacques believed decentralizing the decision making as much as possible. Each region had its own manufacturing, marketing, distribution and sales organization. The central office took care of accounting, developing of new products, and sharing of learning experiences across the regions. Each year Jacques met with the regional managers to discuss a profit plan for each region. The profit plans laid out regional goals for the upcoming year and were used as a tool to monitor performance. During the summer months, a profit statement every two weeks was generated and sent to Jacques in order to detect any major problems. The France region is run by Jean Pinoux and had performed exceptionally well in 2009 with profits above budget and sales increasing by 20% from the previous year. Jean had stumbled across a new source of revenue in which he helped deliver packaged food for regional producers using the company’s refrigerated trucks. The incremental cost to provide the service was very low and was seen by Jean as a simple way to increase revenue. Jacques was surprised by Jean’s new initiative, but acknowledged the profit potential in the distribution business. Pierre Giraux is the manager of the Italian region. The 2009 sales goals were met and Pierre had expanded business into most of the western Italian coast, but suffered from higher wages and lower efficiency than expected, which hindered performance of the region. Andres Molas is the manager of the Spanish region and his performance had been outstanding up until 2009. There had been many problems that sprung up in 2009 causing the performance of the Spanish region to decline. The first  problem was the new machines weren’t working correctly until late August which caused them to run out of capacity several times. The Spanish division had to import product from the French division at a transfer price of full cost plus 5% profit for the manufacturer. On top of that, the Spanish division had to absorb expenses of people traveling to France to fit the Spanish packaging to the French production line. Lastly, there were unseasonably cold temperatures that had driven down tourism and demand. As a result, Andres had to cut prices in order to stimulate demand and keep with competition. Traditionally, each manager was given the same bonus of 2% of corporate profits, but the results in 2009 challenged the fairness of this evaluation system. The Spanish region performed extremely poor and had driven down company’s profits to the lowest it’s been in ten years. Jacques thought it was unfair for the French and Italian managers to pay for the problems of the Spanish region but wasn’t sure Andres Molas was to blame for the poor results. Jacques Truman needs to make many decisions regarding the evaluation and performance of each region. In order to properly evaluate the difference between the expected profit versus the actual profit in the Italian region, a causal analysis was conducted on the Italian region. The causal analysis in Exhibit 1 allowed us to better understand the Italian business. First, we evaluated the impact of the change in sales volume. The sales volume variance (Flexible budget in Euros – Static Budget in Euros) produced a sales variance of â‚ ¬119 for Ice Cream sales and â‚ ¬34 for Specialty sales; this represented a profit variance of â‚ ¬58. While the sales volume variance is important, it is also important to understand the amount of sales growth that is attributed to the temperature change versus actual performance of the business. There was â‚ ¬19 worth of growth strictly from the change in temperature between both ice cream sales and specialty sales. The profit side of the causal analysis resulted in a â‚ ¬8 variance attributed to the temperature change and a â‚ ¬5 0 variance related to performance which resulted in a total volume for profit increase of â‚ ¬58. The change in prices also had an impact on the Italian region’s expected and actual profit because the â‚ ¬7 total sales variance  represented an increase of â‚ ¬7 profit for the actual profit. The â‚ ¬7 variance was calculated by the favorable â‚ ¬20 variance for ice cream sales and an unfavorable variance of â‚ ¬13 for specialty sales (â‚ ¬20-â‚ ¬13=â‚ ¬7). This proves that the Italian region can charge slightly more for their ice cream sales given the increase in demand, while the increase in demand of the specialty product could be more attributed to the decrease in price. Overall, the change in pricing came out to make a positive impact on the Italian region’s profit. The cost of raw materials impacted the actual profit through the price variance and the quantity variance of the direct materials. Using the level 3 analysis, it was determined that the price variance was favorable â‚ ¬46 and the quantity variance was unfavorable â‚ ¬17 which represented a flexible budget variance of favorable â‚ ¬29. This impacts the profit because the Italian region was very efficient with their costs of direct materials, but the Italian region came up short in their manufacturing efficiencies as they experienced an unfavorable quantity variance of â‚ ¬17. An overall favorable flexible budget variance of â‚ ¬29 represents a positive impact on the profit for direct materials. The cost of labor impacted the actual profit through the rate variance and the efficiency variance of the direct labor. Using the level 3 analysis, it was calculated that there was an unfavorable rate variance of â‚ ¬2 and an unfavorable efficiency variance of â‚ ¬11. This impacts the profit because the Italian region paid more for their labor than expected, which turned into an unfavorable variance of â‚ ¬2; this variance is related to the changes in the prices of labor. Also, the Italian region was not as efficient with their labor forces which showed in the unfavorable efficiency variance of â‚ ¬11; this is related to the labor efficiency of the workforce. Overall, the impact of the direct labor was negative to the profit as the Italian region was both inefficient and paid more per labor hour than estimated. The fixed costs impacted the actual profit by having an unfavorable variance of â‚ ¬20. This shows that the Italian region was slightly less cost conscious with some of their fixed costs and this negatively impacted the profit. After considering all of the different components of the profit of the Italian region through a causal analysis, the Italian region experienced a favorable variance of â‚ ¬58 on their overall profit. The manager of the Italian region should be evaluated relative to multiple criteria to gain a holistic view of his region’s performance. In order to compare the three regions together, causal analyses were performed for each region, see Exhibits 1-3. The first crucial measure should be sales growth, and this goes for all regions, not just the Italian region. Sales growth year-over-year is crucial to any business because businesses become more expensive to run as time goes on due to inflation. It is best to look at sales quantities relative to changes in price because if you were to just look at changes in quantity sold, the manager could steeply decrease the price just to make his or her performance look stronger. The next crucial measure should be price and quantity variance. Price variance shows how strong of a negotiator a manager is with suppliers, which can result in huge cost savings. Quantity variance shows how efficient workers are in producing products. A favorable qu antity variance evidences workers are not creating much scrap, and therefore are saving money. Another key indicator of manager performance is labor efficiency variance because it shows how productive workers are when producing product. A strong labor efficiency variance shows that the manager is staying on top of workers and demanding consistently strong performance from them. We do not believe that much weight should be put on labor rate variance because the manager often has little control due to unionization and government regulations within the area of operation. The above measurements of effectiveness of the Italian region and more specifically, the Italian manager can be found in Exhibit 1 which breaks down the relevant variances in determining the appropriate evaluation of the Italian manager. The more specific-scope variances mentioned are shown in Exhibit 6. All of the above tie into the bigger picture variances, which are the flexible-budget variance and the sales-volumes variance, which are shown in Exhibit 5 for Italy in 2009. These then roll into the static-budge t, which determines if a manager met the profit plan for the region, which is shown in Exhibit 4 for Italy in 2009. This gives a rather vague view, and can sometimes distort how a manager truly performed unless the variances that roll into it are investigated further. Both the manager of the French region and Spanish region should be judged on  similar criteria as the Italian region manager besides a few small nuances that France and Spain have in their operations. All of the measurements mentioned above in analyzing the Italian region manager’s performance should be used for France and Spain, as these measurements provide the same value no matter the region. A causal analysis for both France and Spain were conducted and can be found in Exhibits 2 and 3, respectively. For France, the more specific scope variances, flexible-budget and sales-volume variances, and the static-budget variance are shown in Exhibits 9, 8 and 7, respectively. For Spain, the more specific scope variances, flexible-budget and sales-volume variances, and the static-budget variance are shown in Exhibits 12, 11 and 10, respectively. France’s revenue from distribution should be taken out of all variance analyses it is considered in because the other regions do n ot have this service in place, and it would distort the view of relative performance. Also, France’s revenue should not include the 5% markup for transferring product to Spain because this is an intercompany sale and is not based on France’s customer demand but instead is based on Spain’s. We believe it is therefore necessary to remove the 5% markup from the purchase price for Spain because this will cause a heavily unfavorable price variance for direct materials. We feel that it is best to instead take this as a qualitative judgment in the manager’s performance in the sense that sales are outpacing inventory. It can also be noted that competitors have generally shown to steeply decrease market prices when demand weakens, but we feel this is best to account for qualitatively instead of through what seems to be an arbitrary measure of change in sales relative to temperature. It should be the regional manager’s job to address the decrease in the demand instead of have it be excused due to temperature change. In evaluating performance, it can be noted that the conditions did not allow for demand as strong as in other regions, but should not allow for a manager’s performance to be comparable to a region with widely stronger sales. Please note the standards used for Compagnie du Froid are listed in Exhibit 13. Based on our analysis of each of the regions’ performance for the year of 2009 and other important information, we believe that Italy’s regional manager did the best job. First and foremost, the region exceeded profit  expectations are set forth in the profit plan, as shown in Exhibit 6. Italy also earned favorable variances relative to both the flexible-budget variance and the sales-volume variance. The more specific-scope variances were strong as well with the only major weakness being in the quantity variance for ice-cream, but the strength of the other variances outweighs this one significant weakness that can easily be improved through training or overall experience. The direct labor efficiency variance is the only relatively weak variance, however Mr. Trumen noted that new machines were causing labor efficiency issues. It was mentioned that this was included in the profit plan already, however it can be expected that this variance will fluctuate until the equipment begins running normally. Revenue growth also exceeded expectations, which as mentioned earlier, is key to growing any business and maintaining positive cash flows. There are three main problems that Jacques Truman appears to be facing. The first problem involves whether or not to change how much each manager receives as a bonus. Each manager’s bonus is currently calculated at a fixed 2% of corporate profits but after the poor performance of the Spanish division during 2009 has Jacques considering new ways to evaluate each manger’s bonus. Jacques is considering whether to link each manager’s bonus to a performance measure such as a profit plan, revenue growth, or some overall economic measure of results. A second problem is how to calculate transfer pricing from one division to another. The Spanish division was charged full cost plus a 5% profit margin from the French division. Andres Molas believed this was way too much for a transfer price and in turn made his division look bad. Jacques needs to decide for current and future purposes on how to handle transfer pricing in case of a similar event happening again. The third problem involves whether or not to allow Jean Pinoux of the French division to continue providing the distributing services to regional food producers. Jean claims the distributing services add extra revenue with very little incremental cost. Jacques needs to decide whether Jean’s claims of the distributing services are true. After careful analysis of all three problems, we’ve developed some recommendations for Jacques Truman to consider. Our first recommendation involves implementing a new way to calculate the performance bonuses managers receive at the end of  each year. We don’t believe that every manager should simply receive 2% of corporate profits. Each manager’s performances can be measured by a variety growth metrics and budget variances while also taking qualitative factors into consideration. The growth metrics that should be considered are things like sales growth year-to-year and sales quantities relative to changes in price. Varian ces that should be considered are: price variance, quantity variance, and labor efficiency variance. Qualitative factors such as unseasonal temperature changes and intercompany transfer of product should also be taken into consideration. For reasons discussed earlier, we believe considering these metrics will give the most accurate view of each manager’s performance. Using these benchmarks will allow Campagnie Du Froid to calculate a more appropriate performance bonus for each manager. The second recommendation involves how transfer prices should be calculated between divisions. Assuming there are no capacity constraints at the French division because of the two new machines it just bought, transfer pricing should be set at the variable cost per litre of â‚ ¬2.76. When the French division has excess capacity, there is no opportunity cost to be lost and it should be indifferent for them to make these extra units for the Spanish division. Fixed costs don’t need to be added to the transfer price because they will be incurred regardless and the 5% profit margin is unnec essary because all profits eventually go to corporate. This will cut transfer costs for the Spanish division by â‚ ¬0.77per litre and â‚ ¬459,000 total. This type of transfer pricing will be beneficial to the buying division in the future and allow it to spend less when it runs into these types problems. The third recommendation involves the new distribution arrangements that Jean Pinoux wants to engage in the French division. In 2009, revenues from distribution were â‚ ¬79,000. The incremental costs for delivery expenses were â‚ ¬47,000 and â‚ ¬3,000 for depreciation of the trucks. The revenues from distribution outweigh the incremental costs by â‚ ¬29,000; therefore we recommend the French division continues with the new distribution arrangements. We believe these recommendations will help Campagnie Du Froid become a more efficient and profitable company.

Ray Bradbury s Fahrenheit 451 - 2022 Words

Symbolism in the Novel Fahrenheit 451 by Ray Bradbury A symbol is defined as something that expresses or represents a certain quality or a topic through many different things such as letters, characters, actions, or objects. In the novel Fahrenheit 451 by Ray Bradbury, the literary device of symbolism is present through things such as objects, characters, and animals. The objects that represent symbolism are the parlor walls, the books, and the mirrors. The characters that represent symbolism are Montag, Mildred, and Clarisse, and the animals that represent symbolism is the Mechanical Hound, the Snake, and the Salamander. Furthermore, the first way to see this is through the books, mirrors, and the parlor walls in the novel Fahrenheit 451 that symbolize different things. There are three main concepts in Fahrenheit 451 that show symbolism, with the first being the objects. The objects that show symbolism within the novel are the parlor walls, the books, and the mirrors. The parlor walls symbolize how technology has taken over real family, and how they are the new family, or the technological family. This is shown through a conversation between Montag and Mildred, â€Å"’ Will you turn off parlor off?’ he asked. ‘That’s my family.’† (Bradbury 46) The parlor walls in the novel Fahrenheit 451 are the main source of entertainment and whoever is watching it can interact with the characters on the parlor walls, which consumes a great deal of time in the society thatShow MoreRelatedRay Bradbury s Fahrenheit 4511721 Words   |  7 Pagesliterature slowly disappear from the minds of the population? This is the question that Ray Bradbury’s novel, Fahrenheit 451, attempts to answer. In this book, he describes a hypothetical world in which the population not only avoids reading, but has made owning books an unthinkable crime, with all books discovered burned, along with the houses of those who hoarded them. In this dystopian future created by Bradbury, the beauty th at is literature has been replaced in society by television programs andRead MoreRay Bradbury s Fahrenheit 4511358 Words   |  6 Pagesnotice them, books were outlawed, knowledge was forbidden, and memories were hard to come by? In the 1950 novel Fahrenheit 451, author Ray Bradbury presents a society which invokes much thought about the way we live in society today. It’s a story about a lifestyle in the future that has evolved from our present, but in seemingly different worlds. Through the protagonist, Guy Montag, Bradbury makes a wider point about the dangers that a society can present. The government of this future forbids itsRead MoreRay Bradbury s Fahrenheit 4511360 Words   |  6 Pages Ray Bradbury and his Fahrenheit 451 Future Technology has had many great contributions, but is it destroying America as author Ray Bradbury foreseen back in the 1950’s. The intent of this paper is to explain how Fahrenheit 451, which was written over 65 years ago, has begun to come true in some aspects of American society today. The intended audience for this paper is fellow students who have not read this novel, and the professor. Ray Bradbury’s role in Fahrenheit 451 is to help readers understandRead MoreRay Bradbury s Fahrenheit 4511120 Words   |  5 Pagesindividuality suppression, and the ever-growing gap between upper and lower class. The United States is heading down the path of becoming a dystopian society. Citizens in the United States have the same general behavior as those in Ray Bradbury’s novel, Fahrenheit 451. This novel features a world where cars are fast, music is loud, and watching television is the main way to spend free time. People rarely make time for each other, rarely imagine and form their own opinions, and rarely take the timeRead MoreRay Bradbury s Fahrenheit 4512532 Words   |  11 PagesRay Bradbury’s Fahrenheit 451 is a magnificent masterpiece written to aid in visualizing what a distant future dystopian society would look like; one in which everyone lives in the fast lane, technology is at its crowning, void of human relations and instant satisfactions, as well as gratifications, are constantly being pursued. The novel was written during the era where communism and the holocaust began to sprout. Mr. Bradbury, being a patriot of his country, feared that society was leaning towardRead MoreRay Bradbury s Fahrenheit 451976 Words   |  4 PagesGuy Mont age from Ray Bradbury’s novel Fahrenheit 451 would be similar to life without a choice. Bradbury’s novel Fahrenheit 451 demonstrates how excessive use of technology affects a person’s relationship. Montage is the protagonist of the novel who is a fireman. Montage lives in a world where his job is to burn books, and initiate a fire. The government is trying to outlaw the use of books in the city. Bradbury portrays this new world through the character of Montage. Bradbury describes Montage’sRead MoreRay Bradbury s Fahrenheit 4512451 Words   |  10 PagesRay Bradbury’s Fahrenheit 451, is a prime example of social criticism. The story sets in the 24th century where people race jet cars; the author’s idea of the future. It shows a flawed social structure, controlled by the media and government with banning and burning of books, and suppressing society’s minds from history. Their logical thought was that it would keep society from thinki ng too much, which in turn would prevent bad thoughts, and to keep them â€Å"happy all the time†. The book tells a storyRead MoreRay Bradbury s Fahrenheit 4511410 Words   |  6 PagesRay Bradbury’s Fahrenheit 451, published in 1953 by Ballantine Books, rose to fame quickly and surely as a grandfather of the dystopian genre. A year after its release, Greg Conklin of Galaxy Science Fiction named the novel, â€Å"among the great works of the imagination written in English in the last decade or more† (Conklin). The Chicago Sunday Tribune s August Derleth called it a shockingly savage prophetic view of one possible future way of life, while honoring Bradbury in sight of his brilliantRead MoreRay Bradbury s Fahrenheit 4512323 Words   |  10 Pagesnot accepted, or even worse, a detached society where emotions no longer exist. By reading the first few pages of Fahrenheit 451, readers immediately get the feeling of a dystopian society. Firemen creating fires, instea d of extinguishing them, and technology that has taken their society to a whole new level of entertainment. These are exaggerated ideas right off the bat, yet Ray Bradbury carries the readers through the story in order to show them his own outlook on the future- in fact, all dystopianRead MoreRay Bradbury s Fahrenheit 4512071 Words   |  9 Pageslives? In the book Fahrenheit 451, Ray Bradbury depicts a society that is immersed in technology, which becomes an obsession for most of its people. Bradbury also describes the negative effects that come with this technology, especially losing essential human traits like communication and common sense. Finally, Bradbury sends the message that technology is so powerful that it not only controls certain people, but an entire society as well. In the book Fahrenheit 451, Ray Bradbury describes the dangers

Interval Safety Valves - Free Essay Example

Sample details Pages: 32 Words: 9460 Downloads: 7 Date added: 2017/06/26 Category Statistics Essay Did you like this example? Abstract In this master thesis the effects of changing the test interval of the land based safety critical valves have been highlighted Definitions Production assurance: Also referred to as regularity, is a term used to describe how capable a system is to meet demand for deliveries or performance (Norsok Z-016, 1998). Don’t waste time! Our writers will create an original "Interval Safety Valves" essay for you Create order Availability: The ability of an item to be in a state to perform a required function under given conditions at a given instant of time or during a given time interval assuming that the required external resources are provided. Production Availability: The ratio of production to planned production, or any other reference level, over a specified period of time (Norsok Z-016, 1998) Failure: Termination of the ability of an item to perform a required function. Note 1: After failure the item has a fault. Note 2: Failure is an event, as distinguished from fault, which is a state. Failure mechanism: The physical, chemical or other processes which lead or have led to a failure. Failure mode: The effect by which a failure is observed on the failed item. Safety system: A system which realises one or more active safety functions https://www.npd.no/regelverk/r2002/frame_e.htm Safety functions: Physical measures which reduce the probability of a situation of hazard and accident occurring, or which limit the consequences of an accident. https://www.npd.no/regelverk/r2002/frame_e.htm Background Modern production systems are large, complex, automated, and integrated. Failures occur more or less frequently in these complex and large systems. For a production plant, the consequences of failure include high maintenance cost, possible loss of production, and exposure to accidents. It can also lead to annoyance, inconvenience and a lasting customer dissatisfaction that can play havoc with the responsible companys marketplace position (Croarkin and Tobias, 2007) So, it is important for the plant engineers and managers to make decisions that can reduce or eliminate the probability of failures or/and their consequences as well as uncertainties in production processes to get better production assurance. Production Assurance (PA) is introduced by the Norwegian oil and gas industry, which plays a significant role in supporting the decision-making process for managers and engineers dealing with the challenges of meeting various customer requirements as well as production control needs. Therefore, there has recently been a high degree of interest in use of the production assurance concept. (J. Barabady, 2007) Production assurance (also referred to as regularity) is a term used to describe how capable a system is to meet demand for deliveries or performance (Norsok Z-016, 1998). Production assurance may be quantified by various measures like production availability, throughput capacity, deliverability, or demand availability. The PA concept includes several other concepts, such as reliability, maintainability, availability, and maintenance support performance. Some of these concepts, and their relationships, are illustrated in Figure 1. In the following section, different concepts, of production assurance are briefly reviewed and discussed. Effective maintenance is necessary to ensure the reliability of plant/equipment. If equipment is unreliable, the profitability of a business can be greatly decreased. Therefore, the benefits of employing the efficient maintenance strategies cannot be underestimated. Effective equipment maintenance ultimately dictates plant reliability and has great impact on the success and profitability of a Business Unit. There is an increasing industry focus on safety, risk avoidance and environmental awareness, which emphasises the importance of avoiding failure through successful maintenance. As a consequence, maintenance practices often account for an overwhelming percentage of budget expenditure. The financial and safety benefits of employing efficient and effective maintenance strategies for equipment cannot be underestimated. The Norwegian safety regulations have two kinds of requirements related to maintenance: High level requirements stating that installations, systems and equipment should be maintained in a prudent manner. Detailed and prescriptive requirements for a system or a piece of equipment to be tested or inspected at certain intervals. (The Maintenance Baseline Study; Operation Maintenance Compendium) Introduction According to PSAN (Petroleum Safety Authorities Norway) Requirements for testing of safety critical valves emphasizes that there should be annual testing of all safety critical valves and intervals for verification have to be established based on; requirements to reliability, knowledge about failure conditions, knowledge about possible consequences from failure conditions, and knowledge about valve characteristics (T.E. Nkland, H.S. Wiencke, T.Aven ; Identification of safety critical valves a risk based approach) In testing of safety critical valves means that production must be shut down, the valve must be closed, pressure downstream the valve is bled off, and pressure build-up is measured. It has been observed that often these tests are carried out during turnarounds, not influencing production downtime, Even though test are labour intensive, costs related to such test are limited but sometimes the situation is different. Some platforms do not perform turnarounds each year and production may have to be shut down for hours because of these tests. In most cases these shut downs are also affecting other installations. This is of course an expensive operation that the operators want to limit to what is needed to maintain the required safety level; not only because of the loss of production and loss of income, but also because a shut down of the process and manual intervention into the hydrocarbon system has a negative effect on the safety level in it self (PSAN, 2004) ;T. Aven, H.S. Wiencke, T.E Nkland (2006) For instance, If we focus on the barrier functions of the valves, and If we prove the same safety level with alternative test procedures or risk reducing measures then we could be able to justify an increase of test intervals of safety critical valves; T. Aven, H.S. Wiencke, T.E Nkland (2006) Thesis objective/Problem Statement: This thesis is a part of RAMONA project which focuses on regularity and deliverability of the Norwegian gas transport system. In production plants, generally incidents and events occur from both safety-related and technical integrity-related concerns. Safety integrity related incidents are those endangering harm to people. Working without Personal Protective Equipment (PPE), personal injuries, and fire and explosions are some of the examples that come under safety integrity-related incidents. Technical integrity-related incidents on the other hand, refers to a wide area of technical incidents arising from day to day operations, and those resulting in the possible reduction or loss of daily production; see (J. Raza J.P. Liyanage) The main objective of this thesis is to discuss the effects of changing the test interval of land based safety critical valves in hydrocarbons transport systems. Changing test interval means increase or decrease of the interval period compare to current standard test interval (which is one year) followed by industry. Working method Analytical Learning Framework: Limitations Among other factors that had influence on this project in terms of delimiting it in some way, can be mentioned available time, available literature and language skills of author. 1.5 Regulations/ Standards: This chapter is about different Regulations/standards presented by the authority of the Norwegian Petroleum Directorate (NPD) and the Petroleum Safety Authority Norway (PSA) related to maintenance program and further related to safety critical systems. The legislation consists of a two parts; resource management or Resource hierarchic part and a health, environment and safety (HES) or HES hierarchic part; which further display different legislation levels. In the HES area, the Norwegian Pollution Control Authority, the Norwegian Social and Health Directorate and the PSA (former NPD) co-operate on joint, total regulations relating to health, environment and safety on the Norwegian continental shelf. Hence, the HES regulations are issued in pursuance of the Petroleum Act, the Pollution Act, the Product Control Act, the Health Personnel Act, The Patients Rights Act, The Communicable Diseases Control Act and Health related and Social Preparedness Act. The regulations are the framework regulations (Royal Decree), the management regulations, the information duty regulations, the facilities regulations and the activities regulations. Guidelines to the regulations have been prepared by: https://www.npd.no/regelverk/r2002/frame_e.htm Regulations are connected together as shown in figure; Some points related to above figure is explained below. Acts and Regulations come on the first and second level in hierarchy. Then are the guidelines to regulations for detail explanation and similarly these guidelines showed some specific requirement which is called standards. -Petroleum Activities Legislation (Acts and Regulations) For example, Petroleum Activities Act 9-1 says The petroleum activities shall be conducted in such manner as to enable a high level of safety to be maintained and further developed in accordance with the technological development -Guidelines to Regulations These are guidelines to different regulations relating to management, information duty, facilities and activities under the Joint Regulations. E.g. OLF (Norwegian Oil Industry Association)g recommended guidelines for the application of IEC 61508 and IEC 61511 in the petroleum activities on the Norwegian Continental Shelf, -Standards: The guidelines to the regulations often refer to recognized standards as a way to fulfill the functional requirements in the regulations. International Standards like ISO, API, IEC, OLF guidelines, EN and NORSOK standards are often used. -Industry internal governing documents like Testing of safety critical valves in gas/condensate pipeline system. In NORSOK standards Z 008, maintenance defined as The combination of all technical, administrative and managerial actions, including supervision actions, during life cycle of an item intended to retain it in, or restore it to, a state in which it can perform the required function (PrEN 13306) Maintenance includes activities such as monitoring, inspection, testing and repairing. This means, that is all what is required to keep or to get the item or system back into desired operating condition. According to 7 of The Activities Regulations; the safety functions at all times will be able to provide functions and should be designed so that they can be tested and maintained without impairing the performance of the function. Similarly under the 32 of the Activities Regulations, it says that Facilities shall have an emergency shutdown system which is able to prevent situations of hazard and accident from developing and to limit the consequences of accidents, on safety functions. The system shall be able to perform the intended functions independently of other systems. Moreover, the emergency shutdown system shall be designed so that it will go to or remain in a safe condition in the event of a failure which may prevent the functioning of the system. More specifically, Emergency shutdown valves shall be installed which are capable of stopping streams of hydrocarbons and chemicals to and from the facility, and which isolate the fire areas on the facility In 44 (maintenance programme) under the Activities Regulations states that the emergency shutdown system should be verified in accordance with the safety integrity levels stipulated on the basis of the IEC 61508 standard and OLFs Guidelines 070. In addition to that plants which are not included by this standard and these guidelines, the operability should be verified through a full-scale function test at least once each year. The test should cover all parts of the safety function, including closing of valves. The test should also include measurement of interior leakage through closed valves. Recording of the plants or equipments functionality in situations where the function is triggered or put to use may replace testing of the plant or the equipment, The OLF (Norwegian Oil Industry Association) recommended guidelines for the application of IEC 61508 and IEC 61511 in the petroleum activities on the Norwegian Continental Shelf, says that Periodical functional tests shall be conducted using a documented procedure to detect covert faults that prevent the SIS (Safety Instrumented Systems) from operating according to the Safety Requirement Specifications. The entire SIS shall be tested including the sensor(s), the logic solver, and the final element(s) (e.g., shutdown valves, motors). (OLF 070) In addition, It is recommended to record and analyse activation of SIS functions to include the activation as part of the functional testing. If proper operation and documentation thereof exist for a period, the manual proof test for that period may be omitted. Observe that the spurious activation of an ESV due to a PSD, does not test the entire function of the same valve during an ESD action. Moreover, In OLF guidelines it is mentioned that, some periodic interval (determined by the user), the frequency(s) of testing for the SIS or portions of the SIS shall be re-evaluated based on historical data, installation experience, hardware degradation, software reliability, etc. Change of interval is handled as a modification. Any change to the application logic requires full functional testing, and shall be treated as a modification. Exceptions to this are allowed if appropriate review and partial testing of changes are done to ensure that the SIL has not been compromised. 3. Basics of valves Valves are mechanical devices specifically designed to direct, start, stop, mix, or regulate the flow, pressure, or temperature of a process fluid. Valves can be handle either liquid or gas applications; Philip L. Skousen (2004) Valves are used in pipeline systems to control the flow rate, the pressure, or the flow direction of a fluid. They can turn on, turn off, regulate, modulate or isolate the fluid. 3.1 Valve Types 3.1.1 Gate valves: Gate valves are designed to operate fully open or fully closed; when fully opened, there is very little pressure drop across a gate valve, and when fully closed there is good sealing against pressure. With the proper mating of a disk to the seat ring, very little or no leakage occurs across the disk when the gate valve is closed. However, some leakage may occur under very low back pressures. Another positive feature of gate valves is that they usually open or close slowly, which prevents fluid hammer and subsequent damage to the piping system. The main limitation of gate valves is that they are not suitable for throttling applications. When gate valves are used in throttling applications, the flow tends to have high speeds near the gate seat, which leads to erosion. Also, in the partially open state, the valve is prone to vibrate, which can lead to damage. In general gate valves are more subject to seat and disk wear than globe valves, and repairs, such as lapping and grinding, are more difficult to accomplish. 3.1.2 Ball valves: This rotational-motion valve uses a ball-shaped disk with a hole bored through to stop or start fluid flow. When the valve handle is turned to the open position, the ball is rotated so that the hole lines up with the valve bodys inlet and outlet. When the ball is rotated so the hole is perpendicular to flow, the valve is closed. Advantage of ball valve is ease of operation, high flow capacity, and a high pressure and temperature tolerance. In addition, they have the ability to provide fire-safe protection, and they can handle severe service chemicals. Ball valves typically have lower cost and weight, and provide tight shutoff and low stem leakage. They can be adapted to for use in multiple port configurations. 3.1.3 Check valves: The purpose of a check valve is to allow fluid flow in one preferred direction and to prevent back flow or flow in the opposite direction. Ideally, a check valve will begin to close as the pressure drops in a pipeline and the fluid momentum slows. When the flow direction reverses, the check valve should close completely. Check valves can be of the following types: swing, lift and tilting disk. 3.2 Why Testing of Valves/equipment: In NORSOK standards Z 008, maintenance defined as a combination of all technical, administrative and managerial actions, including supervision actions, during life cycle of an item intended to retain it in, or restore it to, a state in which it can perform the required function (PrEN 13306) According to above definition, that is all what is required to keep or to get the item or system back into desired operating condition. In 7 of the Activities Regulations it is stated that Facilities shall be equipped with necessary safety functions which at all times are able to: a) Detect abnormal conditions, b) Prevent abnormal conditions from developing into situations of hazard and accident, c) Limit harm in the event of accidents. Similarly under the 32 of the Activities Regulations, it says that Facilities shall have an emergency shutdown system which is able to prevent situations of hazard and accident from developing and to limit the consequences of accidents, on safety functions. The system shall be able to perform the intended functions independently of other systems More specifically, Emergency shutdown valves shall be installed which are capable of stopping streams of hydrocarbons and chemicals to and from the facility, and which isolate the fire areas on the facility No more than a few decades ago, maintenance function was considered as an unwanted necessity, which is almost impossible to manage. This vision changed with time and maintenance became a separate service that had the centre attention on technical aspects, with the weight on specialization and efficient working methods. More recently, the progress was the realization that there were more efficient ways in terms of optimizing use of the means and more effective ways in terms of achieving the desired results and it was positive cooperation with other operating functions (Internal partnership). (Compendium opmaint. Page 2) In IAEA-TECDOC-1200 is stated that the purposes of monitoring, testing and other preventive maintenance actions are the detection of the degradation and prevention from the failure of the safety functions of systems and equipment and the assurance of prompt correction and restoration of these safety functions. PRA/PSA can be used in order to optimize the level of inspection and maintenance activities correspondingly to them and risk. To evaluate ageing effects of an equipment Check corrosion To prevent accidental events and damage To analyse dynamic degradation and failure mechanism. To estimate the probabilities of degradation. To access the consequences of different degradation cases and evaluate their severity according to the probabilities of the worst consequences due degradation. To perform the risk ranking for each component. To make appropriate recommendations, based on results in order to improve the operation and maintenance. To keep regularity flow constant , we need to test valves and other equipment periodically. To check the reliability and availability of the equipement. From (Working Document, governing doc.) 3.3 Safety Critical valves: The emergency shut down system (ESD system) is a safety system that constitutes an important barrier (the ESD barrier). Fundamental tasks for the ESD barrier are to stop streams of hydrocarbons and chemicals to and from the facility, and isolate the fire areas on the facility. To manage to do this the ESD barrier are depending by the functionality of ESD valves. (Sverre Viland, 2004; Identifying Safety Critical valves A Risk Based Approach) Based on current industry practice, to define whether or not a valve is safety-critical is determined on an evaluation of the safety importance, i.e. how important it is for safety point of view. Therefore an analysis/assessment is needed to demonstrate how the risk level could be affected to the following failure modes: Valve fails to close on demand Valve fails to close within the specified time That it leaks To identify safety critical valves; the required analysis/assessment is performed in to three steps: 1 To Identify and illustrate the functions of the valve Valve functions that are important to safety are identified, i.e. the functions whose failure could result in an unacceptable risk, e.g. failure to close, leakage through closed valve. A safety critical valve normally has more than one function, these are as follows: Does it have an ESD or PSD function? Is the valve part of an overpressure protection system? Is it designed to close/seal off the flow in both directions? Is the valve part of a double block and bleed setup? Other functions. 2 To explain the effects on safety of the above failure modes .3 To Classify critical/unacceptable leakage rate through the valve In the onshore plants, acceptable leakage rates generally set higher than for an offshore installation, the main reason for this is due to lower human risk exposure in onshore plants. The acceptance criteria is determined on the basis of whether the contribution to risk of a leakage through the valve is acceptable, required some measures or not acceptable. According to the performed analysis of some onshore terminals and gas transportation systems, recommended reference values for leakage rates are established in table: Leak rate [kg/s] Action 0.05 Acceptable 0.05 1.0 Perform specific evaluations, Plan for repair. 1.0 Not acceptable repair Table: Acceptance criteria for leakage through closed valves The wide range between the lower and upper limits, i.e. from 0.05 kg/s to 1.0 kg/s, is calculated and mainly based on practical considerations. Current industry experience shows that most valves (99 of 100) satisfy the lower limit requirement i.e. 0.05 kg/s. 3.3.1 Testing Methods: Testing of safety critical valves can be testing of function (close) or testing of leakage (including interior leakage or leakage through closed valve). The various testing methods are different with respect to the required performance in real shut-down situations. Testing of the function (close) with real shut-down case Testing of the function (close) with plant shut down This test is not considered complete since the forces acting on the valve body and valve internals are different from the real case. Thus the test does not disclose all relevant failure mechanisms. Partial stroke testing The main advantage with this test is that one can avoid shut-down of the plant, therefore it is only relevant while the plant it normal operation; but this test is not considered complete because the test does not demonstrate full closure of the valve. Thus the test does not disclose all relevant failure mechanisms. It is preferred that, a test should reflect the intended function in a real situation. According to industry practice; for an emergency shutdown (ESD) valve, this sort of testing should normally be complete closing of the valve with the system under pressure and in operation. However, in some cases there may occur unwanted effects of these ideal tests, like economic consequences related to lost production, but also sometimes negative effects on safety and environment. Based on the industry experience, the optimal system for testing therefore may well be one that applies different test methods, and combinations of tests, in a consistent program, individually tailored to the specific safety critical valve. Testing methods of leakage through valve Different testing methods are used to observe the leakage through the safety critical valve: Leakage test through closed valve with full pressure differential across the valve. Leakage test through closed valve with different pressure levels up- and downstream of the valve Leakage test through closed valve, by measurement of leak rates into the valve body/cavity. Leakage test with valve in open position When we talk about testing of leakage rate through a closed valve; acceptance criteria for leakage rates through the valve at normal full differential pressure across the valve should be defined. 4.1 What are the affects of changing the test interval of safety critical valves? Changing test interval means increase or decrease of the interval period compare to current standard test interval (which is one year) followed by industry. In usual practical applications testing and inspection is the most relevant and effective means of deterioration control. The observed failure frequency, together with a criticality evaluation, will be a basis for prioritizing the maintenance work and optimization of test intervals; Aven and vinnem (2007) In fact cost, the level of risk and the benefits from risk control are closely linked see fig. We can say increase in benefit from a decision may increase the risk if cost are kept constant or any reduction in risk may reduce the benefits as cost may increase. Test interval for test of function close Test interval of leakage in valve Test interval 1 year Test interval 1 year Positive effects Negative effects Positive effects Negative effects Save economic cost Reduction in maintenance cost Avoidance of production loss Less number of process shut downs May cause higher risk related to safety level Performance issues May cause higher frequency of occurrence of failure High reliability and functionality of equipment Improved safety level Higher maintainability and availability May increase leakage Maintenance cost increased More production shut downs may affects other installations Labour intensive Table 1: Different dilemmas of changing test interval of Safety Critical Valve 4.2.1 Discussion: There are some advantages and disadvantages related to each dilemma; see table 1. Firstly, we see that current industry practice about testing of safety critical valve which is once a year; is quiet satisfactory. In the Gassco document TEKD-PR-021/5/; is mentioned about safety critical valve that: The reference value for test interval is 1 year. The program may deviate from this, provided that adequate and documented grounds for this are stated There are many critical factors involve in each dilemma. Followings are the some critical factors and their impacts involved in changing the test interval of ESV. Table 2: Critical Factors Impacts Interval 1 year Interval =1 year Interval 1 year Failure Probability Very Low Low Relatively high Reliability Very high High No big effects Maintenance Cost High Relatively high lower Internal leakage - - Pigging - - Safety Ok Should observed Aging/Life Ok Ok Ok Corrosion No effects Minimum Effects Relatively High eff. Secondly, if we set test interval test interval greater than one year then what would be the effects: In this scenario most important factor which is probability of failure, increases gradually by the pass of time, According to Table 2; there would be relatively high probability of failure in this case; as compare to other dilemmas. We can observe the probability of failure from the table below: Valve # Date of Failure Cause of Failure Maintenance Action Date of Valve installation or last recondition Age at Failure x 1 n When we analyse reliability, in terms of availability of safety critical valve, we can see from table 2, there are not so big effects on the equipment. As we know land based critical safety valves are installed in corrosive environment, so this is also one of the important factor to analyse whether the effects of corrosion is minimum or relatively high in each dilemma. In this dilemma (test interval 1 year) , we can say effects related to corrosive would become relatively high. Another factor is the maintenance cost, if after analysis we see that the maintenance cost is almost same after increasing the test interval, then we can say there would be lower maintenance cost (as a whole) needed ; so it means this factor gives support to increase test interval. Besides other factors , safety is also very important factor, in current practice there are no concerns related to safety issues, but if we set test interval less one year; then there are chances to have more internal leakage because of more process shut downs; as compare to other dilemmas. Safety issues of having test interval greater than one year is underconsideration. The main advantage of having test interval greater than one year is the reduction in n maintenance cost and besides that regularity is also one of the most important benefit in this scenario. Because not in all platforms testing or inspection work is done during turnarounds. there are some platforms, where production may have to be shut down for hours because of these tests. In many cases these shut downs are also effecting negatively to other installations. Therefore, this is obviously an expensive operation. In this scenario due to shut downs, we loose regularity and similarly there is a loss of production and also loss of cost. In short by increasing test interval, one the one hand; we can avoid shutdowns/downtime and hence can improve regularity and on the other hand we can avoid negative effects on the safety level caused by shut down of the process and manual interference into the hydrocarbon transport system. According to API Specification 6D The purchaser should examine the valve design for compatibility with pigging operations when ordering valves for use in pipelines requiring pigging. Pig is now the most widely accepted term for any device which is inserted into a pipeline and which travels freely through it, driven by the product flow. During operation cleaning is an important factor. Products pipelines need cleaning to remove fine solids that may have settled from the product as it traversed the pipeline. Also, some foreign material such as water may have separated from the product and are collected in low points in the pipeline. Water can cause corrosion so it is important to remove it. Any pig that seals in the pipe can be used to remove the water from the pipelines. An often-used pig for cleaning a product pipelines is a pig with cleaning device attached, and usually these are brushes. Pigs should be selected for the specific application, such as the product and the type of cleaning needed, as well as taking into account the length and the other parameters of the pipeline. Natural gas pipelines sometimes need cleaning to remove dust particles that are often produced with the natural gas. This dust along with oil that may come from the compressor may create an internal coating that will reduce the efficiency of the gas flow. The type of cleaning pig will be determined by the internal coating of the pipe. Regular pigging to remove the water is therefore essential because once this type of corrosion has formed, the pig seals will be unable to get into these crevices to sweep the water out and the corrosion rates will increase very rapidly. Inhibitors are often used to prevent corrosion. But if pigs are not used to remove the surface debris such as dirt, sand, wax, corrosion products etc. then water will collect under it and it will prevent the inhibitors from properly treating the active corrosion area. For dewaxing, any type of pig will remove some of the wax, but unless the right type of cleaning pig is used, a lot of it will be left behind and simply smeared on the inside of the pipe wall. Cost of testing a safety critical valve: Normally 3 tonn gas releases during testing of safety critical valve: (e.g. T valve on Kalst) From above statistics we can calculate the cost of testing safety critical valves by: Total cost of testing = 3 * current price (of one tone gas) 5. 1 Failure modes A failure mode is a description of a fault. To identify the failure modes it is necessary to study the outputs of various functions. Some functions may have several outputs. Some outputs may be given a very strict definition, such that it is easy to determine whether the output requirements are fulfilled or not. In other cases the output may be specified as a target value with an acceptable deviation. (See Figure) (Rausand, M. and Hyland, A. (2004). System Reliability Theory: Models, Statistical Methods and Applications, 2nd ed., Wiley InterScience, Chapter 3: Qualitative system analysis) When considering a process shutdown valve, it should be designed a specified closing time, for example, 10 seconds. If the valve closes too slowly, it will not function as safety barrier. On the other hand, if the valve closes too fast, it can probably cause pressure shock destroying the valve or the valve flanges. Closing time between 6 and 14 seconds may, for example, be acceptable, and it can be stated that the valve is functioning as long as the closing time is within the interval. The criticality of the failure will obviously increase with the deviation from the target value. (Rausand, M. and Hyland, A. (2004). System Reliability Theory: Models, Statistical Methods and Applications, 2nd ed., Wiley InterScience, Chapter 3: Qualitative system analysis) It is important to understand that a failure mode is a expression of the failures as seen from the outside, that is, the termination of one or more functions. Internal leakage is thus a failure mode of shutdown valve, since the valve looses its required function to close flow. Wear of the valve seal, however, represents a cause of failure and is hence not a failure mode of the valve. A classification scheme for failure modes has been suggested by Blanche and Shrivastava (1994) Intermittent failures: Failures that result in lack of some function only for a very short period of time. Extended failures: Failures that result in lack of some function that will continue until some part of the functional block is replaced or repaired. Extended failures may be further divided into: Complete failures: Failures that cause complete lack of a required function Partial failures: Failures that lead to a lack of some function, but do not cause a complete lack of a required function. Both the complete and partial failures may be further classified: Sudden failures: Failures that could not be forecast by prior testing. Gradual failures: Failures that could be forecast by testing. A gradual failure will represent a gradual wearing out of the specified range of performance values. The extended failures are split into four categories; two of these are given specific names: Catastrophic failures: A failure that is both sudden and complete. Degraded failure: A failure that is both partial and gradual. The failure classification described above is illustrated in Figure which is adapted from Blanche and Shrivastava (1994) (Rausand, M. and Hyland, A. (2004). System Reliability Theory: Models, Statistical Methods and Applications, 2nd ed., Wiley InterScience, Chapter 3: Qualitative system analysis) 5.2 Failure causes and failure effects The function of a system usually consists of several sub functions. Failure modes at one level in the hierarchy will often be caused by failure modes on the next lower level. It is important to link failure modes on lower levels to the main top level responses, in order to provide traceability to the essential system responses as the functional structure is refined. This is illustrated in Figure for a hardware structure breakdown. (Rausand, M. and Hyland, A. (2004). System Reliability Theory: Models, Statistical Methods and Applications, 2nd ed., Wiley InterScience, Chapter 3: Qualitative system analysis) (Rausand, M. and Hyland, A. (2004). System Reliability Theory: Models, Statistical Methods and Applications, 2nd ed., Wiley InterScience, Chapter 3: Qualitative system analysis) According to IEC (International Electrotechnical Commission) failure cause is the circumstances during design, manufacture or use that has led to a failure. The failure cause is necessary information in order to avoid failures or reoccurrence of failures. Failure causes may be classified in relation to the life cycle of a functional block as illustrated in Figure, where the different failure causes are defined as: Design failure: A failure due to inadequate design of a functional block. Weakness failure: A failure due to a weakness in the functional block itself when subjected to stress within the stated capabilities of the functional block. Manufacturing failure: A failure due to nonconformity during manufacture to the design of a functional block or to specified manufacturing processes. Ageing failure: A failure whose probability of occurrence increases with the passage of time, as a result of processes inherent in the functional block. Misuse failure: A failure due to the application of stresses during use that exceed the stated capabilities of the functional block Mishandling failure: A failure caused by incorrect handling or lack of care of the functional block. (Rausand, M. and Hyland, A. (2004). System Reliability Theory: Models, Statistical Methods and Applications, 2nd ed., Wiley InterScience, Chapter 3: Qualitative system analysis) (Rausand, M. and Hyland, A. (2004). System Reliability Theory: Models, Statistical Methods and Applications, 2nd ed., Wiley InterScience, Chapter 3: Qualitative system analysis) These various failure causes are not necessarily separate; there could be overlap between some of them. For example, there is an obvious overlap between weakness failures and design and manufacturing failures. Failure mechanisms are, according to IEC, the physical, chemical or other processes that has led to a failure. These processes can, for example, be wear, corrosion, hardening, pitting, oxidation etc. This level of failure cause description is, however, not sufficient to evaluate possible remedies. Wear can, for instance, be result of wrong material specification (design failure), usage outside specification limits (misuse failure), poor maintenance (mishandling failure), and so forth. These fundamental causes are referred to as root causes (see above Figure), the causes upon which remedial actions can be decided. A general picture of the relationship between cause and effect is that each failure mode can be caused by several different failure causes, leading to several different failure effects. To get a broader understanding of the relationship between these terms, the different levels of see above Figure should be brought into account. Above Figure shows that failure mode on the lowest level is one of the failure causes on the next higher level and the failure effect on the lowest level equals the failure mode on the next higher level. The failure mode leakage from sealing for the seal component is, for example, one of the possible failure causes for the failure mode internal leakage for the pump, and the failure effect on the next higher level internal leakage resulting from leakage from sealing is the same as the failure mode internal leakage of the pump. Case Study Case study is related to Assgard Transport and main foculs is on Krst gas processing plant north of stavanger. The Krst processing plant plays a key role in the transport and treatment of gas and condensate (light oil) from important areas on the Norwegian continental shelf. The Statpipe trunkline system carries gas from the North Sea to Krst. The Krst facility also receives gas from sgard and other fields in the Norwegian Sea through the sgard Transport trunkline. In opertion since 1 October 2000, the sgard section of the plant processes this gas to meet sales specifications. Dry gas is exported from Krst through the Europipe II trunkline to Dornum in Germany and through the Statpipe/Norpipe system to Emden, which is also on the north German coast. Roughly four million tonnes of stabilised condensate are shipped annually from Krst by sea. From above statistics we can calculate the cost of testing safety critical valves by: Total cost of testing = 3 * current price (of one tone gas) Conclusion Risk: basic expression Risk can be defined as a combination of the probability of occurrence of harm and the severity of that harm. Risk may be expressed qualitatively as well as quantitatively. The definition implies that risk aversion (i.e. an evaluation of risk which places more importance on certain accidental consequences than on others, where risk acceptance is concerned) should not be included in the quantitative expression of risk. It may be relevant to consider on a qualitative basis certain aspects of risk aversion in relation to assessment of risk and its tolerability. The implication of the definition is further that perceived risk (i.e. subjectively evaluated risk performed by individuals) should not be included in the expression of risk (Norsok Z-013) 1.1.2. Dimension of risk When accident consequences are considered, these may be related to personnel, to the environment, and to the assets and the production capacity. These are sometimes called dimension of risk (Vinnem, J.E and al, 2006). 1.2. Risk Analysis objectives and criteria 1.2.1. Objectives The main objectives of risk analysis are: To ensure adequate safety, value adding and cost effectiveness for existing and future petroleum industry developments. To prevent all events or chain of events that may cause loss of life, or damage to health, the environment or assets. 1.2.2. Criteria Criteria are used to express a risk level that is considered tolerable for the activity in question. Risk analysis criteria (RAC) are used in relation to risk analysis and express the level of risk which will be tolerable for the activity. 1.3. Risk Management 1.3.1. General Risk management has the following set of goals: Identify, assess and control risks that threaten the achievement of the defined project objectives, like schedule, cost targets and performance of project delivery. These risk management activities should support the day-to-day management of the project as well as contribute to efficient decision making at important decision points. Develop and implement a framework, processes and procedures that ensure the initiation and execution of risk management activities throughout the project. Adapt the framework, processes and procedures so that the interaction with other project processes flow in a seamless and logical manner. Risk Management: It is acknowledged that the ability to define what may happen in the future, assessment of risk and associated uncertainties, and to select best alternative lies at the heart of the risk management system, which helps in many range of decision-making, from allocating wealth to safeguarding public health, from exploring new reservoirs to decommissioning/disposal of a project, from paying insurance premiums to wearing a seat belt etc. For instance, exploring and producing oil involves risky investments. When petroleum executives make investment decisions on petroleum projects, they face several uncertainties including future oil prices, reserves, environment, petroleum prospectiveness, fiscal terms, current degree of exploration and operational peculiarities. How can the petroleum industry cope to these and other challenges, and making decision on the allocation of capital among competing projects in diverse geographical areas. 1.3.2. Risk management process The risk management process will remain constant over the different project phases throughout the life-cycle of a field development project. The different risk management techniques for assessing day-to-day risks, calculating the ability to meet defined project objectives and the ranking different decision alternatives will also remain the same. Risk management process is performed in a structured way and its often broken down into the following 5 general steps (figure 1). 1) Initiation Focusing; initiate risk management process including identify project objectives. The initiation should also assign personnel to the main risk management roles such as risk manager. 2) Uncertainty Identification; identify risks affecting the project objectives. Assign responsibility for assessing and mitigating each risk. 3) Risk Analysis; assess for each risk the probability of occurring and the corresponding objective consequences, given that the risk occurs. Based on the risk assessment, classify each risk in terms of criticality. 4) Action Planning; identify risk mitigating actions so that the most critical risks are mitigated. Assign responsibility and due dates for each action. 5) Monitoring Control; re-view and, if necessary, update risk assessments and corresponding action plans once new and relevant information becomes available. Decision Making and Risk Management Now a days, there is a great need and importance for the implementation of Risk Management in various industries and in society. We all agreed that Risk cannot be eliminated but must be reduced and managed. It seems to be high expectations, that risk management is the proper framework for obtaining the proper balance between benefits and burdens, i.e. exploring opportunities on the one hand and avoidance of accidents and catastrophes on the other. Decision making is obviously not about making decisions, but making good decisions. Risk management involves decision making in situations involving high risks and large uncertainties, and such decision-making is difficult as it is hard to predict what would be the consequences (outcomes) of the decisions. A number of tools are available to support decision making in such situations, such as cost-benefit analyses, cost-effectiveness analyses, Bayesian decision analysis, risk and uncertainty analyses and risk acceptance criteria. Indeed, to obtain a certain level of consistency in decision making and confidence in getting desirable outcomes needs more better guidance and a structure for decision making in situations involving high risk and certainties. Decision Supporting Tools There are several different views regarding decision making and all have their pros and cons. Here I would like to give brief overview of some of the approaches: Expected utility paradigm suppose if a person is coherent in his preferences among consequences and his opinions about uncertainty quantities, then expected utility approach is attractive as it provides recommendations based on a logical basis. On the other hand in expected utility approach preferences have to be specified for all consequences, which is a difficult task in practice, moreover, almost no role of management in this case. When we see cost benefit analysis, it requires us to indicate the value of a statistical life, not the value of a life. As we acknowledge that a life has in principle an infinite value. So, there should be no amount of money that a person would find sufficient to compensate the loss of life. While a statistical life has a finite value, considering that point; decisions need to be taken that balance benefits and risks for loss of life. It means we are willing to accept the value of loss, given that this benefit is present. In many cases, we perform a multi-attribute analysis without any explicit trade-offs and is rather easy to conduct and works in practice. After assessing the various attributes, costs, safety, environment, political aspects, etc., separately then it is a management task to make a decision by balancing the costs and benefits and thus we gain flexibility in situations involving many stakeholders. But again in some cases it lacks coherency in decision making. We can say, when we have number of factors (related to decision problem) relevant to cost, safety, environment, many decision alternatives, many stakeholders, complexity, and political issues then ideal is not always achievable. As a result we need to make decisions under uncertainty and in this scenario we need some guidelines and proper structure to make a good decision in situation involving risk and uncertainty. Such a frame work has introduced by Aven ( 2003) comprises problem definition (challenges, goals and alternatives),stakeholders, concerns that affect the consequence analyses and the value judgments related to these consequences and analyses (frame conditions and constraints), identification of which consequence analyses to execute and the execution of these, managerial review and judgment and the decision. For making a good decision, focus should be on situations characterized by a potential of rather large consequences and large associated uncertainties which relate to economic performance, possible accidents leading to loss of lives or environmental damage, etc. Risk and decision analyses plays very important role to support good decision making in these situations and according to the present risk analysis regime in Norway, risk acceptance criteria is being used together with the results from these analyses as input to risk evaluation. Well, here the approach which T. Aven, J.E. Vinnem, H.S. Wiencke (2005) suggested is without the use of Risk acceptance Criteria. The main point in this approach is that it is based on the idea that that risk considerations (aspects and attributes related to risk) should be included actively in the decision process and not only be viewed as a frame condition for other business activities. Before going into elements of decision frame work, it is very necessary and prerequisite for further process and good decision making that there should be clear perspective about Risk. Defined by Aven and Vinnem (2007) as combination of possible consequences and associated uncertainties (quantified by probabilities). One can not necessarily say that low uncertainty means low risk or high uncertainty means high risk. For example in a specific diving activity in offshore involves two possible outcomes say (0, 1) and similarly two fatalities (0,1), have two alternatives A B. It has uncertainty (probability) distribution (0.6, 0.4) and (0,1) respectively. Hence for alternative A there is higher uncertainty and lower risk to initiate activity while alternative B shows highest risk because of certain fact that if a person start this activity he/she will get accident. So as a result we can say that for understanding clear perspective about risk, it is necessary to see both dimensions. This clear perspective about risk helps in decision frame work elements which are: 1.2. Planning, Execution, and use risk analysis in life cycle phases of the offshore activities The offshore activities may be divided into different lifecycle phases. The use of risk analyses will naturally vary according to which phase of the activity is being considered. The main objective is to increase the likelihood of attaining these project objectives by providing a systematic approach for analyzing, controlling and documenting identified threats and opportunities both during the planning and execution of a project. Risk analysis will addresses all the different phases of an offshore field development project, being the Pre-study Phase, Feasibility Phase, Execution Phase and Operation Phase, as shown in Figure 2 with defined milestones. The structure of using risk analysis is applied in the following presentation of the lifecycle phases. 1.2.3. Operation phase 1.2.3.1. Normal operation Regular activities which are required in order to operate an installation are all considered as normal operation. This will usually include maintenance and inspection and the implied activity level. The risk level in the operations phase is usually a function of the design and the technical, operational and organizational premises that were established for the operation (Table 2). The design of the installation will normally limit the extent to which risk reduction in the operations phase may be achieved, even though a program for continuous risk reduction is required. It is required that the risk level in the operations phase is monitored in order to identify how the risk level develops. The risk analyses should therefore be capable of identifying the parameters or indicators which have a strong impact on the risk level and also the effect that changes will have on the risk level. This will enable an effective monitoring of changes of the risk level in relation to the RAC. 1.2.3.2 Special operation These are operations that are not covered by the base case risk analysis as they are usually carried out during limited periods in the operations phase. Such operations may be special lifting operations, drilling or other well activities, manned underwater operations, shut down periods for maintenance purposes, etc. The RAC are usually based on an average level through one year, and are therefore not suited for evaluation of risk associated with short duration operations during which the risk levels may be higher globally or locally. Risk acceptance for such conditions will have to reflect: The duration of the period with increased risk. The peak level of risk during this operation. Whether the risk increase is local or global for the installation. Whether the risk increase affects the different personnel groups in the same way or differently. (Table 2)Main risk analyses during operations phase Analysis Timing Main purpose Main focus Detailed risk analysis and analyses in connection with design change proposals, handling of deviations and project phases (TRA extension) After concept risk analysis Evaluate special risk aspects on the basis of performed risk analysis in order to give design input Evaluate how changes etc. affect risk Evaluate effects of deviations from statutory requirements HAZID Reflect design details/specifications Reflect detailed/special analysis performed Provide operational recommendations Update DAL (if required) Assessment of compliance with acceptance and design criteria Input to DSHA (when required/requested) Quantitative/ Qualitative studies (FMEA, HAZOP, etc) When appropriate or requested during engineering phases, in order to evaluate systems designs Identification of required improvements in system design Processing systems Utility systems Drilling fluid systems Essential safety systems Loss of barriers Human factors Integrated risk and EPA of fabrication and installation Prior to decision on concepts for fabrication and installation Provide input to concept and methods for fabrication and installation Identify operational limitation and environmental envelops to be observed during fabrication and installation Fabrication of equipment and structures, hooking up, towing of modules, installation, commissi-oning and start-up preparations All installations and vessels engaged in the installation and hook-up operations Nearby installations and vessels, if they are close enough to be affected by accidental effects Aspects of the fabrication and installation that may severely affect the entire installation and/or risk to personnel Determine the emergency preparedness level for the fabrication, installation and commissioning work 1.2.3.3 Inspection and maintenance Inspection and maintenance form an integrated part of normal operations, including preventive and corrective maintenance as well as routines for condition monitoring and inspection program. Separate risk analyses are usually not conducted for regular inspection and maintenance, neither will particular RAC apply. These activities are implicitly part of the overall risk analysis, usually based on compliance with established procedures and standards for such activities. Therefore, the execution of maintenance and inspection should normally not be subject to risk analysis. Such studies should however be used in the establishment of programs for inspection and maintenance, in order to achieve a cost effective program for these activities and to ensure priority to risk critical equipment. Identification of critical equipment may be performed in relation to RAC for the installation, but risk analyses are usually not suited for establishing the criteria for choosing inspection and/or maintenance program. Change of program for inspection or maintenance should be analyzed in relation to the assumptions made with respect to inspection and maintenance in the overall risk analysis, to ensure that such changes do not affect the risk level in an unacceptable way. 3.2. Pros and Cons of a functional, risk based set of regulations 3.2.1. Risk based regulation Risk-based regulation is the utilization of the modem PSA tool in order to better distribute the resources of both the regulator and the petroleum industry. More specifically, resources would be distributed according to risk significance. Those items or events that have high risk significance would receive the most attention, while those with little risk content would command fewer resources. Risk-based regulation has the potential of both improving petroleum activities safety and reducing oil and gas operating costs. This modem form of regulation could be applied to present operating oil and gas and to advance designs. In fact, it would help to quantify the safety improvements of advanced designs. The application of PSA technology to the regulatory process can reduce public risks in several ways: by finding design weaknesses, by improving oil and gas operations, and in developing severe accident management programmes. 3.2.2. Benefits and disadvantages of risk based regulation Although some countries, are strongly discussing a proposed transition process from deterministic to risk-based regulation, the pros and cons of risk-based regulation including challenges of such a transition process should be taken into account which are summarized in the following. Main benefits of a risk-based regulation are: To have a cost-effective approach to regulation, To assure that resources are focused on essential safety issues, To have a methodology that can be used to both enhance safety and manage operability, To be able to communicate results and decisions on a clearly defined basis, To attain an open, fair, and predictable regulatory framework. On the other hand, there are a lot of disadvantages and difficulties which are posed by such a goal-setting approach: To place very heavy reliance upon the exercise of regulatory personnel in judging whether standards have been complied with, whether risks have been properly identified and quantified, and whether enough preventive or mitigatory measures have been taken to satisfy the proper balancing of costs and risks, To ensure that the regulators forces are extremely well-informed scientifically and technologically in order to produce consistent application of standards, To be relatively time-consuming in ensuring a sound data-base for decisions about risk and methods of control in assessing safety, To impart a high degree of uncertainty into computations of whether risks have been reduced in a sufficient manner which might be a fertile ground for endless debate with the regulator. Challenges which are associated with developing and implementing risk-based approaches to regulation are: To obtain an acceptable methodology for risk assessments that is commensurate with the decisions to be made, To perform the needed, relevant risk assessments, To focus regulatory questions so that risk assessments can be useful, To have a regulatory structure that encourages risk-based methods, To perform the necessary regulatory research that assures a robust, stable approach to risk based regulation, To effectively communicate the process, risks, and decisions to the public.