Readers of our blog will know that we are in Florida and have paid a fair amount of attention to the Gulf Oil Spill. The Gulf oil spill disaster started on April 20, 2010 with an explosion on Deepwater Horizon oil rig. It has been a hundred days since the catastrophe began. Looking back, we must all ask ourselves what was learned from this asset management nightmare.
The Effect of Maintenance Gone Wrong
There is no doubts at this point that the disaster was caused by a combination of under managed operations, poor maintenance policies, and a heavy dose of gambling on the part of BP that the money saved from not maintaining all the proper safety devices to prevent the gas bubble blowout, was worth the risk of life and environmental damage that an oil spill could cause.
100 Day Lowlights and Facts About the Gulf Oil Spill
- Day 6 - safety device that was supposed to stop the flow of oil fails.
- Day 19 - The first tar balls are reported on Dauphin Island.
- Day 29 - Almost 20% of fishing in the Gulf is stopped and oil hits the marshlands in Louisiana.
- Day 43 - Oil hits the Alabama coast and almost 1/3 of federal waters in the Gulf are closed to fishing
- Day 67 - BP shares hit a 14 year low on the New York Stock Market.
- Day 79 - Every State surrounding the Gulf of Mexico has reported tar balls on their beaches.
- Day 99 - Tony Hayward is relieved of CEO duties from BP and replaced with Bob Dudley.
- Day 100 - The Governor of Florida reports that 640 miles of shoreline is oiled.
"Approximately 640 miles of Gulf Coast shoreline is currently oiled: 100 miles in Florida, 362 miles in Louisiana, 108 miles in Mississippi and 70 miles in Alabama... About 1.84 million gallons of total dispersant have been applied: 1.07 million on the surface and 771,000 subsea. "
Source: thegovmonitor.com
- Day 100 - The impact on tourism is expected to last up to 3 years, a negative $23 Billion impact, if the oil does not move our way. The University of Florida issued a report stating that the oil is likely to head to Florida with a wind, hurricane or current change.
- Day 100 - BP's costs are estimated to be over $3 billion and rising.
What Have We Learned About Maintenance Management?
The most important thing that we have learned is that we have all been reminded that maintenance management is not an option for industry. This is not new as the world has already seen its share of maintenance related tragedies when cutbacks are made to save a few dollars. We have also seen how fast an executive can lose his job (99 days) and how maintenance management really is "Pay me now or pay me a lot more later".
It would be difficult for any business leader not to recognize that BP should have made sure that proper maintenance procedures were enforced. Sadly, history has shown us that someone is bound to make the same mistakes again because of the false belief that this could not possibly happen to them. Still, we hope this does not occur again.
Finally, we learned that maintenance management is more than just making sure work requests are being handled or work orders are completed. It is a discipline using skilled professionals dedicated to ensuring that assets are in optimal operational condition in order to obtain their maximum value. Good asset maintenance with an EAM/CMMS is the difference between a marginal bottom line and a great financial performance in a company.
What does the Future for The Gulf States look like.
Industries that have been impacted by the Gulf oil spill such as hospitality, fishing, and oil will eventually recover. Less certain is the environmental impact of the oil spill as it is just too early to tell the true damage done. For those businesses facing a revenue shortfall as a result of the catastrophe, it is important that they take this opportunity to revisit their operations and look for areas of productivity and energy efficiencies that can be garnered both now and when business returns to normal.
Marinas, hotels and lodges near the affected areas can also use this time to make sure their assets are protected from potential oil damage is the winds change. One method of doing this is to use an EAM/CMMS system to schedule the regular inspection of assets to identify early signs of oil issues. A slow period is the perfect time to organize the maintenance management function.
As for the Oil industry, now would be a good time to check maintenance management procedures and tools to make that you do not end up as the next headline.
Share with us your thoughts on how best to handle adjusting to lower tourism.
Below is a list of all our prior posts on the Gulf Oil Spill. We hope that you have enjoyed reading them:
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Go USA, Go USA, this will be my chant until the USA either wins the 2010 World Cup or is eliminated. The USA team success has temporarily overshadowed the catastrophe occurring in the Gulf of Mexico. However, we should not let our guard down as the oil has now started closing Florida beaches. Preventive maintenance and general preparedness will help everyone that might be affected. On that note, our most popular article of the week was titled Why Are You Waiting for Gulf Oil Spill To Impact You? which examined the oil's potential impact on water and air quality.
We hope everyone had the opportunity to read our blogs and check out our website, but just in case you did not have the time to see our blogs and voter links as they were published, we have summarized them for you here. Please enjoy them and be sure to check back for new articles during the week. You can find a complete listing on the Mintek Blog.
1. Why Are You Waiting for Gulf Oil Spill To Impact You?
Author: Stuart Smith
As of 6/25/2010, oil from Gulf Oil Spill has finally started closing Florida beaches with reports that the smell is so strong people are having breathing difficulties. This article discussed how the Volatile Organic Compounds (VOCs) can impact water and air quality. With the worse yet to come, residents and businesses in Florida need to prepare as best they can. Volunteer cleanup workers need to be aware of the health risks and make sure they are adequately prepared.
Key Point: Start stocking up on water, air filters and notice the signs of harmful pollution (see the comments left on the article).
2. USA Advancing in World Cup Means More Asset Maintenance
Author: Stuart Smith
The USA soccer team is making a strong case to be the cardiac kids of the year. A last minute goal pushed the USA in the knockout stages of the world cup (see video link). As the teams advance, cities should expect to be prepared for massive parties especially if the USA team makes it to the finals. Preventive maintenance will be the name of the game as municipalities look to inspect and repair damage from celebrating fans.
Key Point: GO USA, GO USA, Read our predictions and leave a comment.
3. Reducing Water Main Breaks With an EAM
Author: Stuart Smith
This article discusses the aging of municipal water infrastructures and how to best address the increasing amount of water line breaks. With City water systems often over 100 years old the number of leaks, waste and repairs is overwhelming limited budgets. An EAM can help alleviate this issue by converting reactive water maintenance departments into proactive teams for inspection and preventive care.
Key Point: Water leaks alone can increase costs 15%, when combined with the amount of emergency repairs taking place, water management needs to pursue a different plan of attack using an EAM.
4. Knock Your Capital Budget Out of the Park With an EAM
Author: Stuart Smith
Poor capital budget planning can result in untimely cash flow issues as well as unplanned downtime. Critical to constructing a good capital budget is knowing everything there is to know about your assets including their entire maintenance history. This article details the type of information required to put together a good capital budget.
Key Point: Acquiring the needed information for capital budgets is best done using a properly implemented Enterprise Asset Management (EAM) system because of the way data is collected and can be reported.
Read Relevant Articles That We Found Last Week
But wait there is more. We have found several more articles that you might find to be interesting and even put them on our website for you to vote on. The 5 best this week are:
1. Work Design and Technology
Author: Qaiser Fayyaz
Qaiser's article made the list this week because he points out the difficulty and the amount of time it can take to implement technology changes. The concept is easily applied to the implementation of an EAM/CMMS because procedures do change. In addition, the use of technology may be unsettling to maintenance teams who have used the same paper based system for decades.
Key Point: When new technology is introduced into the workplace, job rules and interpersonal relationships all change. Change must be managed and nurtured.
2. Westinghouse Steam Generator Cleaning Technology Improves Performance at Seabrook Nuclear Plant
Author: Stephen Heiser
Stephen's article covers a preventive maintenance techniques being used in the nuclear power industry. The technique, reduces buildup that has collected in steam tubes. Reducing the debris results in much higher energy efficiencies, reducing costs. This is another great example of how preventive maintenance can increase efficiencies and lower costs.
Key Point: Waste volume was reduced from 110,000 gallons to 10,000 gallons.
3. Attain the double vision of reliability AND maintainability
Author: Jeff Shiver
Jeff makes a good point that even the best equipment in the world (low MTBF) is unlikely to perform at optimal levels if the location or design of the equipment makes it nearly impossible to service (increasing MTTR). A simple but pointed article encouraging the use of common sense and careful planning of asset use.
Key Point: Savings from low Mean Time to Failure (MTBF) can be eaten up by higher Mean Times to Repair (MTTR).
4. Using Technology to Implement Business Process Improvements From Employee Suggestions
Author: Thayne Carper
This article agrees with several earlier blog posts that discuss the importance of employee feedback for implementing change with an EAM. Although, Thayne's article focuses on capitalizing on cost reductions ideas, the principal is the same as using employee feedback to optimize operational procedures and achieving the critical buy-in for implementing an EAM.
Key Point: The people who know the business best are the employees, encourage their feedback, implement their suggestions. It makes change so much easier.
What We Learned This Week
Major points this week included, how long term planning and cost savings can be achieved using an EAM as well as the importance of engaging employees when incorporating EAM systems. An EAM is a long term solution for virtually any industry and can handle asset management for almost everything from water utilities to property management.
Too read more visit our Vote on Links page.
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If you want a EAM & CMMS system, but can't afford to implement one this budget year; then this contest is perfect for you. We are offering a chance to win a FREE EAM & CMMS software suite. Contest includes a 1-year site license, 10 web/mobile licenses and support, as well as, training and implementation.
I know a lot of people are concerned about the cleanup and containment efforts from the Gulf Oil Spill but you would have to be pretty naive to trust BP's assessment of the potential impact from toxins either in the water or in the air. Maybe it is time to really think about how this catastrophe may effect our water, air and other natural resources here in Florida. Once a clearer picture of the potential damage has been drawn, we will discuss some of the ways businesses, as well as individuals, can act now to help prepare themselves using an EAM/CMMS system.
The Reality Check
Crude oil contains several Volatile Organic Compounds (VOCs) that are known to cause health issues. Theses toxins can be distributed either by air, direct contact or ingestion (contaminated water supplies or food such as fish). In addition, the chemical dispersants BP has been using, Corexit 9500 and Sea Brat 4, contain propylene glycol, 2-butoxyethanol and dioctyl sodium sulfosuccinate both of which are very toxic to wildlife and the food chain.
"Crude oil contains a mixture of volatile hydrocarbon compounds, polycyclic aromatic hydrocarbons that typically include benzene, toluene, and xylene, which are known for their carcinogenic effects. Polycyclic Aromatic Hydrocarbons (PAH) have caused tumors in laboratory animals when they breathed these substances. Symptoms of exposure to these petroleum compounds include dizziness, headaches, nausea, and rapid heart beat. Kerosene exposure, a component of the dispersants being used in the Gulf, causes similar symptoms."
Source: Wikipedia
"In a report written by Anita George-Ares and James R. Clark for Exxon Biomedical Sciences, Inc. titled Acute Aquatic Toxicity of Three Corexit Products: An Overview Corexit 9500 was found to be one of the most toxic dispersal agents ever developed. Even worse, according to this report, with higher water temperatures, like those now occurring in the Gulf of Mexico, its toxicity grows."
Source: The European Union Times
Between the actual spill and the dispersal agents the effects on Gulf residents may linger for several years. The same is true for the entire Gulf ecosystem including coral reefs, fish and wildlife populations.
Water Quality Issues
Visual images of the oil slicks have dominated internet pictures for the last month and much more oil has been found below the surface in giant plumes whose existence is adamantly being denied by BP (What a shocking surprise). The real question is can the Gulf Oil Spill find its way into the water supplies used by business and individuals?
"PAHs can cause a persistent environmental hazard if the oil penetrates substrates or is not removed from beaches"
Source: National Oceanic and Atmosphere Administration
Regardless of whether the oil is on the surface or lurking out of eyesight, oil or oil residues may under the right environmental conditions:
- Clog or contaminate membranes and cooling systems of water desalination plants. Tampa, home to one of the largest desalination plants in the USA has tentative plans to close its valves should a threat appear imminent.
- Infiltrate any number of underwater caves and potentially contaminate groundwater. There are a lot of homes in Florida that draw upon well water as well as one huge spring water company.
- Pollute all waterways. There is a potential that strong winds can disperse water droplets over a much wider area having the effective impact that acid rain had on northeastern States for many years.
Air Quality Concerns
When oil rises through the ocean and is exposed to air it emits toxic gasses. These gasses can travel hundreds of miles with the right combination of temperature and wind strength as well as several other climatic factors. These gasses may not be detectable by smell and in fact despite the EPA giving an all clear on June 15th, 2010 there has been over 75 cases of people being treated for illness from fumes.
"The crude oil and natural gases erupting from the bottom of the sea, hitting the surface of the water and eventually finding its way to land are complex chemicals. When exposed to air they create volatile organic compounds (VOC’s) and hydrocarbons in the form of gases. When these chemicals are burned from the surface of the water, they create nitrogen oxide, sulfur dioxide, carbon dioxide, carbon monoxide, acidic aerosols and solid particulate matter soot. These emissions are chemical poisons."
Source: AFP
The danger from the air is difficult to detect. It took years to see the human health consequences from the Exxon Valdez oil spill and hopefully Gulf Oil spill cleanup crews will be better prepared.
What Can Businesses and Individuals do to Prepare?
Although this is a business oriented blog, some of the alternatives listed below may also be applicable for households. What is common for both businesses and individuals is that inspecting air and water equipment as well performing preventive maintenance on these same assets may reduce the risks. Perhaps even more important for businesses such as hotels and resorts on the Gulf is that regular scheduled inspections and preventive maintenance using an EAM/CMMS system may reduce claims from guest or staff developing illnesses. Our suggestions are:
- Inspect/test water supplies for contamination. Any water used from Gulf sources for industry should be tested. Businesses can schedule inspections using a CMMS. Results are then reported online to management for immediate action. Remember, water contamination can come from the air (seaside pools).
- Have a good supply of bottled water on hand.
- Clean, check air filters, air handlers regularly. Residue buildup can cause airflow obstruction raising energy costs, improper filters may not catch contaminants (HEPA filters should stop Benzene and other VOCs). These tasks can be added to the CMMS preventive maintenance schedule.
- Pay attention to new instances of persistenct coughing, dizziness and headaches.
- If working with the any of the cleanup crews make sure you are wearing protective gloves, masks and any other equipment deemed necessary.
- If you are planning on closing down operations for the short term use an enterprise asset management tool to document each asset's condition, description and location as well as documenting the steps necessary to properly shut down and start up equipment.
Exactly what the impact of the Gulf Oil spill will be on our health and environment cannot be determined. It is certain however, that there will be a consequence to all of us for the asset maintenance approach BP took (cheapness, greed, callous disregard etc.). Will it be dispersed at low enough levels to not cause harm? We all hope so. In the meantime, share with us how your business will prepare.
Helpful links and related stories:
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If you want a EAM & CMMS system, but can't afford to implement one this budget year; then this contest is perfect for you. We are offering a chance to win a FREE EAM & CMMS software suite. Contest includes a 1-year site license, 10 web/mobile licenses and support, as well as, training and implementation.
The Gulf Oil Spill continues to dominate the news. With so many great maintenance management systems available in the market today that can actually save a company money on maintenance costs it is frustrating to see global companies such as BP refrain from performing proper maintenance and inspections. We hope everyone had the opportunity to read our blogs and check out our website, but just in case you did not have the time to see our blogs and voter links as they were published, we have summarized them for you here. Please enjoy them and be sure to check back for new articles during the week. You can find a complete listing on the Mintek Blog.
Our most popular article this week was Are Florida Beaches Really Clear of the Oil Danger. This particular article took exception to a recent press release from The State of Florida claiming its beaches were free of oil. Unfortunately, the true impact of the oil spill has yet to be seen.
1. An EAM/CMMS Can Get Property Management Ready for Summertime
Author: Stuart Smith
This article discusses how an EAM/CMMS can be used to mitigate the impact of severe heat and storms during the summer months. The key for Property Managers to avoiding unnecessary or unplanned maintenance is to inspect exposed assets on a frequent basis in order to detect potential and early stage problems with the help of an EAM/CMMS system. For example, EAM driven inspections may find a loose metal roofs panel that can break away or leak during a storm. Securing it now avoids water damage later.
Key Point: The early detection of issues allows property management maintenance teams to make minor repairs and adjustments before major repairs are needed.
2. Are Florida Beaches Really Clear of the Oil Danger?
Author: Stuart Smith
Being near the coast of Florida, we watch the news of the gulf oil spill very closely. This article is a response to the ongoing ad campaign from officials from the State of Florida announcing that Florida beaches were clear of oil. The post questioned whether or not officials were more concerned with tourism dollars than public safety.
Key Point: The Gulf oil spill is a catastrophe, oil is rapidly approaching Florida but more importantly , the oil visible on the surface is only the tip of the iceberg.
Read Relevant Articles That We Found Last Week
But wait there is more. We have found several more articles that you might find to be interesting and even put them on our website for you to vote on. The 5 best this week are:
1. Preventative Maintenance for Refrigeration Systems
Author: Posted on Cooler Connection
The article, a reprint of several pages from Heatcraft’s Installation and Operation Manual provides a very good checklist for preventive maintenance on refrigeration systems. The post covers preventive maintenance tips, their optimal frequency and what to look for while inspecting equipment.
Key Point: Preventive maintenance for refrigeration systems is critical to minimizing repair costs as well as optimizing energy efficiency.
2. Do you have a matrix to prioritize work orders?
Author: Jeff Shiver
Jeff post makes a point that operations and facilities managers must work together to establish priorities for work orders. Although the concept is really common sense, too often there is a communication breakdown resulting in unnecessary labor and repair expenses. Jeff suggest a priority matrix be developed for use.
Key Point: Lack of information and communication inhibitors can be alleviated by the use of a CMMS to organize and distribute information. By using a CMMS management can have the tools necessary to make informed decisions.
3. Check the oil
Author: George B. Mullins
George's article reinforces the need to make sure equipment is properly maintained with proactive preventive maintenance in particular the lubrication of machinery. The article goes on to provide tips and how to take samples as well as perform an oil analysis,
Key Point: Proactive maintenance program will enhance your equipment's performance and boost productivity.
3. Energy Efficiency Investments Still Strong Despite Recession
Author: Heidi
Heidi's article discusses the results of a recent survey of 2,800 executives indicating energy efficiency remains a top priority. The article goes on to discuss the different motivations but points out that costs savings is the most important factor followed by environmental concerns.
Key Point: There is an opportunity for facility, plant and property managers to save money as well as act responsibly. The question becomes when and how will executives make the necessary changes.
4. Get Hotel Guest to Come Back with a CMMS program
Author: Posted on Info Barrel
The article discusses the importance of property management using a CMMS to get clients to return. The premise is based upon the fact that clients have a choice of where to stay. The decision to return to a given hotel is based upon their experience. A CMMS will speed up the response to repair and maintenance issues. This has a dual impact of improving customer satisfaction and helping maintenance staff take better care of property assets.
Key Point: The cost of a new sales (attracting new travelers) is far more than making sure facilities are maintained and customer issues are handled timely.
What We Learned This Week
The most important lesson of the week is that proper preventive maintenance remains a critical function of asset management. From refrigeration units to oil well safety every business must understand that common inspections and preventive maintenance will save them money on both labor and operational expenses but it can also help avoid a true disaster.
Too read more visit our Vote on Links page.
Register for your chance to win a Free EAM & CMMS Worth $23,000
If you want a EAM & CMMS system, but can't afford to implement one this budget year; then this contest is perfect for you. We are offering a chance to win a FREE EAM & CMMS software suite. Contest includes a 1-year site license, 10 web/mobile licenses and support, as well as, training and implementation.
There was an article published on Friday May 28, 2010 in the Tampa Bay Business Journal titled Restaurants, hotels launch anti-oil PR effort that announces a major ad campaign already that began earlier this week telling the public that Florida Beaches are clear of oil from BP gulf oil catastrophe. My first reaction was of course, you have got to be kidding me and this response is not directed at the Hotels or Resorts but at the State of Florida.The ads which began running May 24th will continue through June 4th may not be accurate.
Although I understand that tourism is crucial to the Florida economy especially this Memorial weekend, part of me is wondering if this will now play out like a Hollywood horror movie where public officials try to protect the tourism dollar by minimizing the dangers. Globs of oil have washing up on gulf beaches since last week and it is only a matter of time before Florida beaches on the Gulf side see an impact although due to water currents not all beaches will be affected equally. Unfortunately the true impact may not be visible because only a fraction of the oil and contaminants reach the surface.
The latest estimates for the amount of oil spewing into the gulf of Mexico are at least 4 times the amount that the Exxon Valdez spilled.
"Two teams of scientists calculated the well has been spewing between 504,000 and more than a million gallons a day. Even using the most conservative estimate, that means about 18 million gallons have spilled so far. In the worst-case scenario, 39 million gallons have leaked."
Source: Yahoo News
"...scientists said the mile-deep well has been spewing 12,000 to 19,000 barrels of oil a day, far more than previously estimated"
Source: The Washington Post
At 42 gallons per barrel the estimate is between 500,000 and 1,000,000 gallons of oil have been are now in the gulf of Mexico. These are incredible numbers and it makes it inevitable that the entire coastal region will be impacted in some manner or form.
A more prudent approach would be to state that although Florida Gulf beaches may be visibly clean at the moment, tourists and beachgoers should be on the lookout for the following signs of danger including but not limited to tar balls, globs of oils, oily film on the waters surface, rashes, petroleum odors and so on. Hotels and Resorts need to be prepared to inspect beaches as well as other assets for the first signs of oil emergence and make sure their air filtering systems are in optimal working condition. The best way to do tackle maintenance tasks are to have them organized using a CMMS system.
We wish everyone a safe summer, but lets be careful out there and have a healthy dose of skepticism if someone is telling you "Oil - what Oil? There is no danger here"
If you liked this post you may also want to read:
Register for your chance to win a Free EAM & CMMS Worth $23,000
If you want a EAM & CMMS system, but can't afford to implement one this budget year; then this contest is perfect for you. We are offering a chance to win a FREE EAM & CMMS software suite. Contest includes a 1-year site license, 10 web/mobile licenses and support, as well as, training and implementation.