Welcome to Awareness course on

RISK BASED INSPECTION

(API 580-API 581)

CONDUCTED FOR

DACON TRAINING INSTITUTE

CONDUCTED BY

Chintamani M. Khade

ASNT Level III : UT,MT, RT, PT, VT, LT, ET & IR

ISO 9712 LEVEL 3 : UT, MT, PT, RT, VT
CSWIP: 3.1 Welding Inspector, PAUT level 2
API: 510, 570, 653, 571, 580, SIFE (Fixed), SIFE (Rotary) 1
Objectives
 Understand the main concepts of RBI
 Appreciate the benefits of RBI
 Interpret and communicate results
 Manage an RBI program
 Analyze and interpret the results of an RBI
analysis
 Understand the basics behind the likelihood and
consequence analyses in RBI
 Calculate and analyze risks using the software
 Why Do We Need RBI?
• Most inspection codes/standards based on LOF, not COF
• Reduce risk of high consequence failures
• Improve the cost effectiveness of inspection and
maintenance resources
• Provide a basis for shifting resources from lower to
higher risk equipment
• Measure and understand the risks associated with
current inspection programs
• Measure risk reduction as a result of inspection practices
Motivation of an RBI Program

A large percent of the total unit risk is

concentrated in a small percent of the
equipment items.
WHAT IS RBI ?
 Traditional inspection methods :
- Generally time based
- Often unfocussed and indiscriminate,
- With little relevance to the actual risk of
equipment.

 RBI is based on :
- Assessment of RISK levels,
- Prioritizing the equipments based on risk
levels
- Focusing inspection program based on risk
levels.

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WHAT IS “RISK” ?
 Risk is the net result of: The Likelihood of
Failure (LOF) and the Consequence of Failure
(COF).

Risk = Likelihood of failure x Its consequence

Risk = LOF X COF

 RBI is likely to reduce risk by :

1. Reducing LOF by Suitable inspection and,

2. Reducing COF by risk mitigation methods..
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Risk Based Inspection
LIKELIHOOD
OF EVENT
X CONSEQUENCE = RISK

IDENTIFY AND QUANTIFY THE RISK:

Risks considered are:

* Safety
* Environmental
* Business

The inspection is planned to reduce the risk based on

the factors creating the risk.

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GRAPHICAL DISPLAY OF RISK LEVELS

5 Highest Risk
High Risk

4 high Risk
LIKELIHOOD
CATEGORY

2 Medium risk

1 Low Risk

1 2 3 4 5
CONSEQUENCE CATEGORY
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GRAPICHL DISPLAY OF RISK

9
 RISK
10-1

L
i 10-3
k
e
l
i Risk = 10
h 10-5
o
o
d Risk = 1
10-7

10 102 103 104 105

Consequence
EQUAL RISK LINES

Likelihood

RISK=HIGHEST

Risk=MEDIUM
RISK=LOW

1
Consequence
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RISK ASSESSMENT

 Risk assessments can be qualitative or

quantitative.

 Assessments combining features of both (i.e

accuracy of quantitative and simplicity of
qualitative are denoted as semi-quantitative.

 Qualitative answers are often sufficient to

make major decisions.

 Qualitative methods are cumbersome, time

consuming. Semi-quantitative results in
reasonably accepted results with lesser efforts.
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 RISK ANALYSIS
1) Hazard Identification – Study of Process,
environment, damage
mechanism of each item

2) Likelihood Assessment – Inspection method, NDT

Inspection Frequency

3) Consequence Assessment – Type of product flammable

or toxic, area affected etc.

4) Risk Evaluation and Reporting - Combing LOF & COF

5) Mitigation and improvement – Appropriate & adequate

Inspection,
Design improvement
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 BENEFITS OF RBI

1 - Optimize inspection / maintenance

resources
2 - Increase availability time of certain

processes facilities
3 - Longer operation of certain equipments
and,
4 - Maintaining the same level of risk for the
whole plant

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Risk Assessments: API 580 and 581

API 580 : Recommended Practice that

describes all vital issues to be considered
when implementing a RBI program .

Used as the Standard guideline document

for methods and requirements for RBI.

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Risk Assessments: API 580 and 581…Contd.

API 581: Base Resource Document that

describes specific step-by step RBI
methodology for oil and gas as well as
Petrochemical Plants.

Used as working document. Contains

detailed work-sheets, graphs, tables, and
other data…all to be used by RBI task force
for actual carrying out specific RBI
implementations.

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 API RP 580

API RP 580 is intended to provide:

• Guidance on developing a Risk Based

inspection (RBI) program in Hydrocarbon
and Chemical process industries.

• It details out:
a. What is RBI
b. What are the key elements of RBI
c. How to implement a RBI program

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THE RBI ASSESSMENT (API 580)…Contd.

RP 580 is intended to supplement:

API 510: Pressure Vessel Inspection

code,

API 570: Piping Inspection Code and

API 653: Tank Inspection code .

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THE RBI ASSESSMENT (API 580)…Contd.

The RBI assessment must systematically

evaluate:

• The probability of failure and

• The associated consequence of

failure.

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THE RBI ASSESSMENT (API 580)…Contd.

 The probability of failure assessment must

be based on all forms of deterioration that

could be expected to affect the piece of
equipment.

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THE RBI ASSESSMENT (API 580)…Contd.

The consequence of failure assessment

must address

safety/health/environment aspects and

Economic standpoint

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Quantitative Risk Based Inspection
PSM
PSM/ /PHA
PHA PROCESS
PROCESS MANAGEMENT
MANAGEMENT EQUIPMENT
EQUIPMENT INSPECTION
INSPECTION
ASSESSMENTS
ASSESSMENTS CONDITIONS
CONDITIONS SYSTEMS
SYSTEMS EVALUATION
EVALUATION PROGRAM
PROGRAM

GENERIC
GENERICEQUIPMENT
EQUIPMENT PLANT
PLANTEQUIPMENT
EQUIPMENTDATA
DATAFILE
FILE
FAILURE
FAILURE DATABASE
DATA BASE
CONSEQUENCE
CONSEQUENCE
ANALYSIS
ANALYSIS
PROBABILITY
PROBABILITYOF
OF
FAILURE ANALYSIS
FAILURE ANALYSIS
RISK
RISKPRIORITIZATION
PRIORITIZATION
PROCESS
PROCESSSAFETY
SAFETY
CONSEQUENCE
CONSEQUENCE MANAGEMENT
MANAGEMENT
MITIGATION INSPECTION IMPROVEMENTS
MITIGATION INSPECTIONPROGRAM
PROGRAM IMPROVEMENTS
IMPROVEMENTS
IMPROVEMENTS
Quantifying “Inspectable”
Risk

RISK = LIKELIHOOD OF EVENT X CONSEQUENCE

Generic Failure Damage Factor Injury ($)

Frequency Env. clean up ($)
Item repair ($)
Damage Adjacent repairs ($)
Inspection
Age Mechanism(s) Downtime ($)
Effectiveness
& Rates
TOTAL ($)

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 Calculation Of The Likelihood
Failure Frequency Site Specific Modifiers

Equipment Hole size: Management System

X Equipment Factor X
Type 1/4" 1" 4" Rupture Factor

Pump
Column Technical subfactor 100
Filter
Damage Rate
Tanks
Inspection Effectiveness
Piping 10
Universal subfactor
Plant condition
1
Cold weather
Seismic activity

Mechanical subfactor
50 100
Equipment complexity
Construction code Management System Evaluation Score %
Life cycle (vs. Reqs of API RP 750 "Management of
Safety factors Process Hazards" and other API codes)
Seismic activity
Process subfactor
Continuity
Stability
Relief valves
Management of Risk using RBI

Risk with typical inspection program

RISK

Risk using RBI

Uninspectable risk

LEVEL OF INSPECTION ACTIVITY

25
 Three Inspection Programs vs.
Risk

Minimal
R Program

I Current
S Program

K Optimum
Program

Uninspectable
Risk

Inspection Program Resources

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 Scope of API 580
 RP 580 is specially targeted at the
application of RBI in hydrocarbon and
chemical process industry.

 API 580 is focused on mechanical

integrity of pressure equipments and
minimizing the risk of loss of
containment due to deterioration.

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 Why was RBI developed?

 All pressure equipment contain flaws

Most flaws are innocuous - Don’t
cause problems
 Few flaws cause catastrophic failure
Must find (inspect) those critical
flaws in high risk service – Cost
effectively
 Typically 80% of the risk is associated
with < 20% of the pressure equipment

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 Scope of API 580…Contd.

RBI complements (not replace):

 Process Hazard Analysis (PHA)
 Hazardous operation (HAZOP)
 Reliability centered Management
(RCM)

Which focus on Design, Operation and

Maintenance practices respectively.

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 PURPOSE AND SCOPE OF API 580

A successfully implemented RBI will

throw up suggestions for:

Developing the appropriate inspection

strategy commensurate with risk ; and/or
Risk mitigation and Risk-management
By providing information on following:

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PURPOSE AND SCOPE OF API 580…Contd.

a. Ranking by risk of all the equipments

b. An inspection plan to be employed, e.g:

 Inspection methods
 Extent of inspection
 Timing of inspection (insp.interval)

c. Suggestions of risk mitigation

d. Expected levels of residual risk

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 RBI Covers

• Reactors • Pumps
• Pressure Vessels • Compressors
• Piping • Heat Exchangers
• Furnaces • Storage Tanks

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 RBI Does Not Cover

• Individual components
• Instrument systems
• Control systems
• Electrical gear
• Machinery components
• Non-pressurized equipment
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 Uninspectable Contributors to Risk

• Human error
• Natural disasters
• External events (e.g., collisions or falling objects)
• Secondary effects from nearby units
• Deliberate acts (e.g., sabotage)
• Inherent risk in handling hazardous materials
• Inspection method detectability
RBI BENEFITS AND LIMITATIONS

Benefits:

a. Overall reduction of risk of the plant and

equipment
b. Understanding / Acceptance of current risk
c. RBI helps to identify equipments that may
not require inspection or mitigation
because of acceptable level of risk
d. The inspection and maintenance activities
can be more focused (towards risk) and
also more cost effective.

35
RBI BENEFITS AND LIMITATIONS…Contd.

Limitations:

RBI does not compensate for:

a. Inaccurate/ missing information
b. Inadequate design or faulty installation
c. Operations outside design limits
d. Lack of the qualified persons or sound

engineering judgments.

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RBI : Continuous improvement tool .

• As new data (inspection results) becomes

available, reassessment of RBI program can
be made with a refreshed view of risks.
• It may identify shortcomings in
effectiveness of presently available
inspection methods.
• RBI is expected to promote faster
development of more appropriate inspection
technologies.
• Review of present but underutilized
technologies, which may be more effective
in risk assessment.

37
RBI as integrated Management tool:

RBI is a risk assessment and risk-

management tool.
It produces inspection and
maintainance plans to achieve:
• Reliable and safe operation,
• Cost effective inspection and
• Longer process runs for
uninterrupted productivity.

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 Types of RBI Analysis

• Level I - Qualitative risk analysis, simple , brief

prioritization of equipment.

• Level II - Semi-quantitative risk analysis,

more detailed prioritization and planning.

• Level III - Quantitative risk analysis, in depth

analysis & prioritization.

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 RBI Analysis Comparison
I II III
Level
Definition Qualitative Quantitative Quantitative

Process
Ranges Actual Number Actual Number
Inputs

Damage High, Med, Low, Damage Factor Damage Factor

Mechanisms susceptibility 1-5000 range 1-5000 range

Consequence
Consequence
Area, Failure
5x5 Matrix Area, Damage
Safety Risk Frequency,
Location Factor, 5x5
Quantified
Matrix
Risk
Safety,
Financial Business
N/A Production,
Risk Interruption only
Environmental 40
 Types of RBI Analysis…Contd.

Perform minimum level of analysis necessary

to provide information adequate for
decision making.

Detailed analysis, when not necessary, does

not benefit the decision maker, but also
inappropriately use resources .

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 QUALITATIVE APPOACH – COF

Six factors considered to assess Likelihood Category.

 Equipment Factor (EF) – 15 Points

 Damage Factor (DF) – 20 Points
 Inspection Factor (IF) – 15 Points
 Condition Factor (CCF) – 15 Points
 Process Factor (PF) – 15 Points
 Mech. Design Factor (MDF) – 15 Points

Sum of above six factors establishes overall Likelihood

factor (Part A).

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 QUALITATIVE APPOACH – COF

Major hazards or the consequences in

Refinery & Petrochemical plants are:

 Fire and Explosion (Part B)

 Toxic Risk (Part C)

Out of the above, (Part B & Part C), higher

Level of consequence is taken as “Overall
Consequence Category”.

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 Quantitative Approach

Likelihood & consequence analysis gives the risk

in quantified absolute figures i.e.

 In USD per year or

 Area affected (Risk Area) in square feet.

The results are used to Develop Inspection

programs to reduce Risk.

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 Quantitative Approach - contd.

Likelihood Analysis works out failure

frequency considering :

 Generic Failure Frequency

(Global)
 Equipment Modification factor
(Equipment)
 Management system evaluation
factor (Plant)

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 Quantitative Approach - contd.

Consequence Analysis considers :

 Flammable consequences
 Toxic consequences
 Non flammable non toxic
 Environmental consequences
 Business interruption
consequences

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 QUANTITATIVE RISK ASSESSMENTS

Adjusted Failure frequency (AFF) is calculated by:

AFF = GFF * FD * FM

Where,

GFF = The generic failure frequency.

FD = Damage factor specific

to the mechanical integrity of the
equipment.

FM = Management factor, specific to the

plant.
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 Likelihood Analysis

1. Determine Generic Failure Freq.

(Database)

2. Equipment Damage factor

3. Management Evaluation factor is

determined from a score out of 1000
points

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49
50
 SEMI-QUANTITATIVE RBI

 This shortened process (Level II) is an

80/20 version of Level III analysis. and is
expected to produce 80% of the results with
20% of the effort.

 It retains all of the vital aspects of risk

analysis utilized in Level III analysis, but
makes numerous simplifications significantly
reducing the time and effort to collect data
and to conduct an RBI .

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INSPECTION PROGRAM OPTIMIZATION

 RBI analysis could be an effort to optimize

the inspection program, by obtaining the
lowest risk at the lowest cost.
 Thus, a company may shift its limited
inspection resources away from low risk
equipment (which may be over-inspected)
towards the higher risk equipment (that
may be under-inspected).
 The iso-risk lines help to clearly
differentiate higher risk equipment from
lower risk equipment.

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RBI Based Inspection Program

It addresses two issues :

 Develop inspection program and
appropriate technique relevant
to type of damage

 Optimize inspection program

commensurate with risk, i.e.
decrease in inspection activity if
no gain in risk reduction results
in high level of inspection

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RISK REDUCTION THROUGH INSPECTION

In short, The RBI throws-up:

A prioritization ranking of each piece of
equipment for deciding three different
levels of
inspection activity:
1. A reduced but adequate inspection
plan
2. Continuation of current actual level of
inspection, and
3. Increased but optimized level of
inspection

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 Where Inspection Helps

Mechanical
Failure
41%
Process Upset
About half of the 8%
containment Sabotage/Arson
losses in a Natural Hazard 3%
typical 6%
petrrochemical Unknown
process plant Operational 18%
can be Error
influenced by 20%
inspection
activities
Design Error
4%
Role of RBI into current
Inspection Practices ?
RISK
RISK
REDUCTIONS
REDUCTIONS
RISK
RISKBASED
BASED INSPECTIO
PRIORITIZATION INSPECTIO
PRIORITIZATION NN
PLANNING
PLANNING

RECORDS INSPECTIO
INSPECTIO
UPDATIN N
N
G EXECUTIO
EXECUTIO
N
N
FITNESS
FITNESS
FOR INSPECTIO
FOR N
SERVICE
SERVICE RESULTS 56
 Rank the Exposures
Losses ($)

Function failures
 Quantifying Your Risks
Losses ($)

Safety
Environment
Business

Function failures

Identify and quantify all risk exposures

( Frequency x Consequence)
 Reviewing Risk Controls
Losses ($)

• Inspection
• Maintenance
• Training
• Procedure
Exp.

• Insurance

Identify and quantify annual expenditure

spent to avoid losses
 Applying Balanced Controls
Losses ($)

Exp.

Focus expenditure on the high risk items

Losses ($)
Reduce Risk Exposures

Exp.

Optimize expenditure to reduce losses

Inspection Program Costs
Balancing Risk Exposure and Inspection Costs

RISK
OPTIMIZED $ AMOUNT
RISK EXPOSURE ($)

EXPENDITURE ON INSPECTION
Inspection cost ($)

INSPECTION EFFORT

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 RBI and Other Programs
 API 750 Management of Process Hazards

 OSHA PSM 29 CFR 1910.119

 EPA RMP 40 CFR 68

 API 579 Fitness for service

 API-510 Pressure Vessel Inspection Code

 API-570 In-Service Piping Inspection Code

 API-653 Storage Tank Inspection Standard

 RBI Methodologies
 API 580, 581

 Shell Global RBI

 TWI – RISKWISE software

 AEA Technology – Operational Critical

Assessment (OCA) software

 Aptech Engineering –Risk Directed Mechanical

Integrity Program (RDMIP) software

 SAIC – Risk Management software

 Meridium
 YOUR TURN !!!

Thanks a lot for patient listeneing

Any Questions ?
Your Turn

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