Implementing an Enterprise Asset Performance Management System: Northumbrian Water Limited Case Example

Transcription

1 Nigel A Kent, Principal Consultant, MWH Business Solutions Implementing an Enterprise Asset Performance Management System: Northumbrian Water Limited Case Example Why Implement an Enterprise Asset Performance Management System? Northumbrian Water Limited and the Specific Objectives for its Asset Performance Management System Integration Strategies and Practices Applied Progress to Date and Lessons Learnt 2007 AWWA/WEF Joint Management Conference

2 Measuring cost performance Balanced scorecard focused on water service providers real business needs

3 Cost Performance Comparators (CPC) Embedded technology delivers data contextualisation Asset Shortfall Performance Management Distribution of CPCs - drives both Opex and Capex efficiencies Asset Group Asset Group Asset Group Focus on reducing total expenditure Best Practice Opex and Capex Quick Wins Opex reductions Cost Cost / Ml Cost / Age

4 Why Implement an Enterprise Performance Management System? Parameter What we do What we should do Asset Current Condition Future Performance Data Business Focus Local & short-term to resolve problem On our siloed activities Business-wide to gain corporate knowledge to avoid problem On outcome for endusers Challenge = Shift Perspective + Develop Customer / Service- Centric Vision

5 Opportunity for Industry Focus on Future Performance Relating historical data to a predicted future performance serviceability indicators - and timely intervention to avoid Level of Service failure

6 Opportunity for Industry Focus on organisational learning by bringing all disparate data together in an easy to use environment Information Policy Risk Management Performance / Serviceability of Asset Production Efficiency Performance of Engineering and Ops Resource Value = Performance Cost Cost of Asset Procurement Cost of Engineering and Ops Resource Individual Learning training / community Performance Management facilitates Organisational Learning pattern abstraction / process efficiency / understanding total cost of ownership and service relationships

7 Opportunity for Industry Focus on communication of relevant information Recognition of the rapid evolution in sensor technologies and how best to harness this potential in terms of signal to balance sheet intelligence The true cost of doing business displayed on the desktop everyday Ranking of assets by meaningful KPIs: power, labour, chemical costs, disposal costs, quality, reliability, efficiency, and total asset cost

8 Northumbrian Water Limited (NWL) NWL provides water and wastewater services to 2.6M people in the North East, and water services to 1.7M people in the South East The Company owns, maintains and operates 25,493 km of water mains and 15,711 km of sewers, 482 treatment plants, nearly 400 water storage sites and over 1,000 pumping stations

9 NWL s Environment Previous investment by NWL in an Oracle Database / Warehouse Builder For some departments data was being collected and migrated to the warehouse however, some departments within NWL have utilised off-line spreadsheets to both store and transform data. This raised concerns that the data warehouse may become a data mortician! Other drawback of a typical data warehouse is the rear-view mirror picture it provides to users. Thus, key objective is to increase effective utilisation of NWL s Oracle Asset Data Warehouse

10 Northumbrian Water Limited (NWL) and the Specific Objectives for its Performance Management System Major challenges: Monitor and compare performance of assets to drive performance improvements and optimise investment decisions Capture and analyse asset and process level data from disparate sources in a timely manner, identify trends, and carry out forward analysis to enable proactive asset management Make validated corporate (business and process level) data accessible to support efficient production of management information and regulatory reports

11 Integration Strategies and Practices Applied Key stands that were addressed included: Comparability (evaluation and selection) Evangelism (getting corporate consensus and incorporation into day to day business) Implementing and configuration of NWL s Performance Management solution Training and motivating the end users within NWL

12 Comparability - Best practice in the oil and gas industry Enterprise Asset Performance Management aligns well with water industry s needs Year Cost of Production 13.5 / barrel 7.0 / barrel 4.5 / barrel Percentage Reduction - 48% 67% Achieved through: Process and technology Supply chain management Successful IT implementation Improved communication Measurement and reporting focusing management on where to make a difference

13 Evangelism incorporation into day to day business Senior management engagement Establish leadership and implementation team Wide range of business users brought on-board from the outset to ensure no silo mentality Establishment of Operational Champions tasked with: Identification of reports to produce including meaningful KPIs Identifying data sources Agreeing report layout and configuration Set appropriate target levels Assess outputs of the reports make a difference! Identification of data issues and future development Assist in prioritisation of future development and resolution of data issues If we don t measure and benchmark we cannot manage our assets effectively.

14 Implementation Process These key strands were interwoven with NWL s requirement for the effective implementation and configuration of the technology solution Key Existing System Partial Existing Data Flow MWH/C3 responsibility NWL (IT) responsibility Engarde MIPS GIS LIMS MWH Programme Management C3 Amulet MWH C3 Amulet NWL AM & IT C3 Amulet NWL AM & IT MWH C3 Amulet NWL AM C3 Amulet NWL Data Warehouse Asset Hierarchy Code Validation Routines Develop application interface to Oracle database Implement within Citrix platform Align application with data sources Start to align strategy, processes & reporting needs Implement Business Logic in analysis Implement strategy through operational processes Amulet Reports C3 Wee Guys Staging Database Amulet DB Amulet Client Live Link CITRIX Template DB Amulet Server

15 Training and motivating the end users within NWL End-users within NWL include all levels of staff from site operatives to senior managers Administrator training included establishment of NWL experts who understood heart of Amulet engine and what C3 s developers were undertaking on NWL s behalf Joint development of training materials using NWL s corporate database including tools such as video training Operational Champions tasked with preaching the winwin for the business and staff via practical demonstration to others within the business using the holistic Amulet environment

16 Progress to date and lessons learnt Amulet software is now in place and receiving corporate data Data validation is now key and identifying data quality issues Increasing data exposure to key players in NWL Performance information is now being produced to feed into the company s decision making processes Extra resources have been secured to support the Enterprise Asset Performance Management System Importance of ongoing: Monitoring of asset performance Identify performance shortfalls Investigate opportunities Develop plans Take action Monitor progress Management team support to ensure the process delivers clear business benefit

17 Progress to date and lessons learnt Continued engagement is required through out the process with all stakeholders Uniform approach was essential but it has been necessary to accommodate some flexibility to sustain buy-in / meet different demands Messages need to be repeated regularly! The size of the task was underestimated Effectively implemented Enterprise Asset Performance Management is a great enabler for driving business transformation.. but change is rarely easy! Any change, even a change for the better, is always accompanied by drawbacks and discomforts Arnold Bennett

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