CPI DECISION MATRIX

HALLIBURTON
POTENTIAL/ACTUAL CONSEQUENCES
SIGNIFICANCE
LEVEL

II

III

IV

Level
Description

DESCRIPTIVE
WORD

HEALTH &
SAFETY
IMPACT

ENVIRONMENTAL IMPACT

Catastrophic/
Strategic

Fatal or
Permanent
Disabling
Injury or
Illness

Critical

Severe Illness
or Injury;
including Lost
Time Injury
and
Recordable
Vehicle
Accident

Significant

Marginal

BUSINESS RISK

Presents potential harm or

adversely effects the general
public and has the potential for
widespread public concern of
Halliburton operations. Can have
serious economic liability on
operation.

Potential failure effects safe

operation, non-compliance with
government regulations, violation of
company policy, wide spread
customer dissatisfaction

> $150,000

Any incident that presents limited

harm to the environment at our
facility and requires specialized
expertise or resources for
correction

Potential incident that adversely

affects job, HES ability to provide
satisfactory solution, significantly
reduces customer satisfaction and
requires specialized expertise or
resources for resolution.

$25,000 to
$150,000

$1,000 to
$25,000

< $1,000

Potential failure causes customer

Any incident that presents limited
dissatisfaction with moderate delay
Minor Injury harm to the environment and
and/or extra work with general
or Illness
requires general expertise and
expertise and resources for
resources for correction
resolution.

Any incident that represents

No Injury or limited harm to the environment
Illness
but requires minor corrective
action.

Potential failure causes only slight

customer concern and inconvenience,
and can be resolved quickly with
little additional expertise and
resource.

IMPORTANCE
Code
RATING
Action
Required

PROBABILITY RATING

Frequent

Reasonably
Probable

Occasional

Remote

Extremely
Improbable

PROBABILITY RATING
TOTAL
FINANCIAL
IMPACT

Will usually occur during the execution of the

activity or operation.
Likely to be a common occurrence during the
execution of activity or operation.
Likely to occur sporadically during the execution
of activity or operation
Not likely to occur during the execution of
activity or operation, but probable.

Alert

High

Medium

Low

Probability of occurrence is virtually zero.

STEP 1: After receiving a CPI, consider the Potential/Actual Impact in terms of Health and Safety Impact, Environmental Impact, Business Risk and Financial Impact. This
will identify the SIGNIFICANCE LEVEL of the CPI.
STEP 2: Consider the probability rating based upon the descriptions provided above.
STEP 3: Follow the Significance Level (identified in STEP 1) across the line until it intersects with the Probability Rating (identified in STEP 2). This is your IMPORTANCE
RATING.
STEP 4: Enter the IMPORTANCE RATING into the IMPORTANCE RATING field of the CPI Database
STEP 5: Complete all necessary actions to address the CPI according to the ACTIVITY MATRIX.

DECISION MATRIX;282517778.xls

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ACTIVITY

HALLIBURTON
IMPORTANCE
RATING

Long-term/ Short
Term Solution

Root Cause (C/P

Only)

Team vs. Individual

Response

Pre-Implementation
Review

Solution Implementation
Effectiveness Review

COPQ

Cost-Benefit Analysis

Elevating and
Sharing

Yes

Yes, Mandatory
adoption by all
locations, as
directed by FBM
Functional
Manager

TapRoot
Investigation

A must person be
Service Quality
assigned to monitor
Team, Leadership implementation. CPI
Root Cause Team
Team, and FBM to remain open until
and Process Team
Functional
the effectiveness of
Management
action items is
validated.

Solution Clearly
Documented

Use of Quality
Tools (Ishikawa,
TOC, etc)

Follow-up review
after specified time.
Service Quality
Root Cause Team
CPI remains open
Team and
or Process Team
until the effectiveness
Leadership Team
of action items can be
validated

Yes

Yes

Yes, communicate
throughout FBM
for review and
possible adoption
of practice

Long-term Action
Optional when
Closed for Trend
Analysis

5 Why Analysis

Can be Team or
Individual

Applicable Local
As indicated by
Functional
general trend analysis
Manager

Yes

4 What's

Optional sharing
with all locations
in NWA

Close for
Trending Only

None

Individual

COPQ Worksheet
is not required

None

No

Full Blown Action

Plan

ACTION MATRIX;282517778.xls

Review with
originator to
ensure clarity of
intent

WM-NAHES-431

None

Yes

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ACTIVITY

IMPORTANCE
RATING

ALERT: FULL
BLOWN ACTION
PLAN

HALLIBURTON

ACTIVITY DESCRIPTION

ACTIVITY

A complete action plan listing action items,

expected completion dates, and responsibilities
must be clearly documented.
ALERT: TapRoot

The LONG TERM SOLUTION must specifically

detail the actions taken to respond to the CPI .

If the CPI is going to be closed for trending

MEDIUM:
purposes only, then detail in the LONG TERM
LONG-TERM SOLUTION is optional. If the CPI is not be
ACTION
closed for Trending Purposes, the LONG TERM
OPTIONAL
solution should provide a clear understanding of
WHEN CLOSED the actions taken to resolve.
FOR TREND
ANALYSIS

ROOT CAUSE
(C/P)
MEDIUM:
5 WHY's

LOW: CLOSE
FOR TRENDING
ONLY

The Root Cause should be identified by

questioning the chain of events using the 5 WHY
approach. Incident Investigation Worksheet is to
be completed.

No formal Root Cause Analysis is required.

There is no need to document a LONG TERM

SOLUTION.

SOLUTION & ROOT CAUSE;282517778.xls

ACTIVITY DESCRIPTION
A complete TapRoot Investigation including
identifying causal factors must be completed.
Incident Investigation Worksheet is to be
completed.

Appropriate Quality Tools such as Theory of

Constraints, Ishikawa Diagram, or others, should
be used to determine the root cause and all
HIGH: USE OF contributing factors. Incident Investigation
QUALITY TOOLS Worksheet is also to be completed.

HIGH: CLEARLY
DOCUMENTED
SOLUTION

LONG TERM/
SHORT TERM
SOLUTION

IMPORTANCE
RATING

LOW: NONE

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ACTIVITY

IMPORTANCE
RATING

ALERT: ROOT
CAUSE TEAM
AND PROCESS
REVIEW TEAM

HIGH: EITHER
ROOT CAUSE
TEAM OR
PROCESS
REVIEW TEAM

TEAM v.
INDIVIDUAL
RESPONSES

HALLIBURTON

ACTIVITY DESCRIPTION

ACTIVITY

A Root Cause Analysis Team must be convened

to conduct TapRoot Investigation. A Process
Review Team must be convened to review the
findings and recommendations of the TapRoot
investigation prior to implementation.

IMPORTANCE
RATING

ALERT: YES

Either a Root Cause Analysis Team or a Process

Review Team is to be convened to identify the
appropriate course of action.
HIGH: YES

It is up to the decretion of the Responder to

determine if a Team is necessary to respond to the
issue.

PREIMPLEMENTATION
REVIEW

MEDIUM: TEAM
OR INDIVIDUAL

ACTIVITY DESCRIPTION
The Solutions associated with an Alert CPI must
be reviewed prior to the implementation by the
local Service Quality Team, the local Leadership
Team and the FBM Functional Manager.

The Solutions associated with a High Importance

Level CPI must be reviewed prior to the
implementation by the local Service Quality Team
and the local Leadership Team.

The Solutions associated with a Medium

Importance Level CPI must be reviewed by the
local department/functional manager.
MEDIUM: Yes

No team is needed for response.

LOW:
INDIVIDUAL
TEAM

TEAM & PRE IMPL REVIEW;282517778.xls

LOW: Yes

WM-NAHES-431

Low Importance Level CPI's should be reviewed

with the originator prior to closure to ensure that
the intent of the CPI is clearly understood. This
will ensure that the actions are appropriate.

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ACTIVITY

HALLIBURTON
ACTIVITY DESCRIPTION

IMPORTANCE
RATING

ALERT:
MANDATORY

HIGH: YES

SOLUTION
IMPLEMENT
ATION
EFFECTIVEN
ESS REVIEW

MEDIUM:
GENERAL
TREND
ANALYSIS

ACTIVITY

It is mandatory that a person will be specifically

designated to monitor implementation. The last
action item will be to review the effectiveness of
implementation, including quantification and
validation of costs and savings. The CPI will
remain open until after the review.

ALERT: YES

The team will specify timeframe for review to be

conducted. The timeframe must allow action
items to be completed, and potential recurrences
to arise. The last action item will be to review,
including quantification and validation of costs
and savings. The CPI remains open until after the
review is completed.
The effectiveness of the solution implementation
will be gauged through trend analysis. Analysis
indicating a recurring trend may lead to the
initiation of new CPI's of a higher importance
level.

IMPORTANCE
RATING

HIGH: YES

COPQ/
SAVINGS

Full COPQ and future savings documentation is

to be captured on the COPQ Worksheet, attached
to the database records. Actual savings will be
documented and updated in the database as part
of the Solution Implementation Effectiveness
Review.

Full COPQ and future savings documentation is

to be captured on the COPQ Worksheet, attached
to the database records.
MEDIUM: YES

There is no effectiveness review.

Cost of Poor quality Worksheet not required,

single amount to be placed in database field.

LOW: NONE

REVIEW & COPQ;282517778.xls

ACTIVITY DESCRIPTION
Full COPQ and future savings documentation is
to be captured on the COPQ Worksheet, attached
to the database records. Actual savings will be
documented and updated in the database as part
of the Solution Implementation Effectiveness
Review.

LOW: NO

WM-NAHES-431

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ACTIVITY

HALLIBURTON

IMPORTANCE
RATING

ACTIVITY DESCRIPTION

ACTIVITY

IMPORTANCE
RATING

A CVA Analysis is required. Go to website at

http://halworld.halnet.com/hes/hesmba/HESMBA
_bustools.asp for a copy of the tool
ALERT: YES

ALERT: YES

A full Cost-Benefit Analysis is required.

The solution is to be communicated throughout

the FBM for possible implementation.

HIGH: YES

COST
BENEFIT
ANALYSIS
MEDIUM: 4
WHAT'S

ACTIVITY DESCRIPTION
Implementation of solution is mandatory by all
locations as directed by the FBM functional
manager.

HIGH: YES

A "4 What Analysis" is to be conducted

answering the questions:
What will is cost?
What are the risks?
does it take to implement?

ELEVATING
AND
SHARING
What

Optional communication throughout the NWA for

implementation in applicable locations.
MEDIUM:
OPTIONAL

No Cost-Benefit Analysis is required.

No sharing is required.

LOW: NO

CBA & SHARING;282517778.xls

LOW: NO

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Cost of Poor Quality Worksheet

ESTIMATED

HALLIBURTON

Pre-Implementation Estimated COPQ and Savings: This section to be completed prior to implementing Solution Action Plans.
Enter the COPQ and Savings Amounts into the ESTIMATED fields of the CPI Database.
Number of
People

Description of Cost Factor

Labor Hours

Opportunity
Cost per Hour

Total Estimated
Cost

Job Adjustments to Account 800201 (547)

LOST REVENUE FACTORS
Lost Revenue During Resolution Period
Lost Revenue from Future Work not awarded
Lost Revenue from Delayed Work
Lost Revenue due to lack of available of resources (labor and
equipment)

Total Lost Revenue

$0

Lost Profit (Total Lost Revenue times .30)

$0
ADDITIONAL COSTS

Direct Personnel Lost Time

$0

Direct Equipment Lost Time

$0

Hotshot Personnel Time

$0

Hotshot Equipment Time

$0

Hours Spent on Process Review/Incident Investigation

$0

Onsite Equipment Repair Hours

$0

Road Call Personnel Time

$0

Road Call Equipment Time

$0

Maintenance Parts Cost

Injury Lost Work Days (in Hours)

$0

Company Incurred Medical Bills

Increase in State Workers Compensation Premiums
Lost time to attain medical attention

$0

Lost Time to Resolve Environmental Spill

$0

Materials cost to Resolve Environmental Spill

Hours Spent on Resolution with Customer

$0

Excess Rental Equipment Charges

$0

Subcontractor Charges

$0

Third party costs paid

$0

CPI Overhead Costs

TOTAL ADDITIONAL COSTS

50.00

$50

$50

TOTAL COST COPQ

SAVINGS
NUMBER OF ANNUAL OCCURRENCES FROM SAME
ROOT CAUSE
ANNUALIZED COST OF IMPLEMENTATION
ANNUALIZED SAVINGS

$0

($50)

NET ANNUALIZED SAVINGS

Pre-Implementation Review Sign-off Comments:

Pre-Implementation Sign-Off
ESTIMATED COPQ & SAVINGS;282517778.xls

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HALLIBURTON
Post-Implementation Actual COPQ and Savings: This section to be completed during the Solution Implementation Effectiveness
Review. Enter the actual documented COPQ and Savings Amounts into the ACTUAL fields of the CPI Database.
Number of
People

Description of Cost Factor

Labor Hours

Opportunity
Cost per Hour

Total Estimated
Cost

Job Adjustments to Account 800201 (547)

LOST REVENUE FACTORS
Lost Revenue During Resolution Period
Lost Revenue from Future Work not awarded
Lost Revenue from Delayed Work
Lost Revenue due to lack of available of resources (labor and
equipment)
0
0
Total Lost Revenue

$0

Lost Profit (Total Lost Revenue times .30)

0
ADDITIONAL COSTS

Direct Personnel Lost Time

$0

Direct Equipment Lost Time

$0

Hotshot Personnel Time

$0

Hotshot Equipment Time

$0

Hours Spent on Process Review/Incident Investigation

$0

Onsite Equipment Repair Hours

$0

Road Call Personnel Time

$0

Road Call Equipment Time

$0

Maintenance Parts Cost

Injury Lost Work Days (in Hours)

$0

Company Incurred Medical Bills

Increase in State Workers Compensation Premiums
Lost time to attain medical attention

$0

Lost Time to Resolve Environmental Spill

$0

Materials cost to Resolve Environmental Spill

Hours Spent on Resolution with Customer

$0

Excess Rental Equipment Charges

$0

Subcontractor Charges

$0

Third party costs paid

$0

CPI Overhead Costs

50.00

0
0
0
0
0
0
TOTAL ADDITIONAL COSTS

$50

$50

TOTAL COST COPQ

SAVINGS
NUMBER OF ANNUAL OCCURRENCES FROM SAME
ROOT CAUSE
ANNUALIZED COST OF IMPLEMENTATION
ANNUALIZED SAVINGS

$0

($50)

NET ANNUALIZED SAVINGS

Solution Implementation Effectiveness Review

Solution Implementation Effectiveness Review

Sign-Off
ACTUAL COPQ & SAVINGS;282517778.xls

WM-NAHES-431

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This form is to be completed with all Corrective and Preventative CPI's.

HALLIBURTON
INCIDENT INVESTIGATION FORM

List the names of HES Employee(s) and or Contractors Involved:

A.
B.
C.
D.
E.
F.
List all equipment numbers for units directly involved:
A.
B.
C.
D.
E.
F.
Environmental Conditions such as weather, light, time of day:

List the events preceding the incident:

A. Event:
B. Preceding Event #1:
C. Preceding Event #2:
D. Preceding Event #3:
DOT Hours
DOT Hours Since last day off
DOT Hours on 15 hour clock
Describe fatigue level
PROCESS REVIEW TEAM MEMBERS:
A.
C.
E.
G.
I.
COMMENTS

INCIDENT FORM;282517778.xls

WM-NAHES-431

B.
D.
F.
H.
J.

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This form is to be used with all Corrective and Preventative CPI's with a High Importance Level.

HALLIBURTON

Ishikawa Diagram
Management Systems
(Causal Factor)

People
(Causal Factor)

Incident

Equipment
(Causal Factor)

Environmental
(Causal Factor)

Instructions
1. Into the Incident box, insert a sentence or statement describing the incident which took place. Be sure that all participants in the
root cause team agree with this statement.
2. Coming off the fishbone, list the major causal factors which could have caused the incident. The most common of PROCESSES,
PEOPLE, EQUIPMENT, AND ENVIRONMENT have been listed. This categories may be changed as necessary to fit the situation.
3. List the specifics symptoms associated with each causal factor which contributed to the incident. Answer the question "What
happened inside each of the causal factors which caused the incident. If a item could fit under multiple causal factors, list it as many
times as necessary
4. Review each symptom, and ask why it occurs, list these more basic causes below each symptom.
5. Test for root cause by looking for causes that appear repeatedly within or across major causal factor areas.
TIP: During the incident investigation, draw the diagram on a white board or flip chart. Then copy the data to this form so
that it can be stored with the CPI record in the database for future reference.
ISHIKAWA DIAGRAM;282517778.xls

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This form is to be completed with all Medium Importance Level Corrective or Preventative CPI's

HALLIBURTON

5 WHY ANALYSIS
List the incident that occurred:

Why 1: Why did this incident occur?

Why 2:
Why 3:
Why 4:
Why 5:

Instructions:
1. Write a statement to identify the incident that took place.
2. Ask why this situation happened?
3. Based upon the answer provide for the previous why, ask why the contributing factors were in place.
4. Continue to ask "WHY" until you have asked this question at least 5 times.
5. Test your root cause by talking through the incident with the root cause removed.

Example: RCM Unit was cemented up. As a result was lost 2 jobs waiting for the equipment to
Incident:
Why 1

Why 3

be fixed and a job adjustment.

Unit was not properly washed out after the end of the job
(Why was unit not properly washed after job?) The employees operating this unit not
familiar
withemployees
the equipment.
(Why
were
not familiar with equipment?) Slightly different equipment was
being brought in from other locations to cover the demand of work. Employees were
not familiar with the differences.

Why 4

(Why were employees not familiar with the differences?) They were not provided
training on the different equipment.

Why 5

(Why were employees not trained on unfamiliar equipment?) Area was trying to catch
all the work and did not take the time to train.

Why 2

We were in such a hurry to catch the next job, that we did not properly train employees
Root Cause on the equipment.

5 WHY;282517778.xls

WM-NAHES-431

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COST BENEFIT ANALYSIS

HALLIBURTON

NOTE: All dollar amounts are to be calculated on an annual basis.

Additional Cost and Benfit factors can be filled in as dictated by the
situation.
COST
Equipment Costs
Software Costs
Training Costs
Training Facilitation Costs
Labor Costs
Material Costs
Lost Revenue

BENEFIT
Labor Savings
HSE Savings
Additional Revenue
Quality Savings
Material Savings
Maintenance Part Savings

TOTAL COST

NET BENEFIT

TOTAL BENEFIT