Connecting asset management processes Paul McKeon 1
Agenda Asset Management processes What does good look like? and here is the reality Drivers for connecting Asset Management processes Real-life challenges practical solutions Lessons learned 2
Power Copyright Gas 2011 Water Institute Renewables of Asset Management Environment Reproduced with kind permission of the Institute of Asset Management 3
Asset Management Policy Asset Management Strategy Demand Analysis Technical Stds and Legislation Asset creation and Acquisition Systems Engineering Configuration Management Criticality, Risk Assessment & Mngt Contgcy Planning and Resilience analysis Contract and Supplier Management Asset Management Leadership Organisational Structure and Culture Competence and Behaviour Strategic Planning Asset Management plans Capital investment Decision Making O&M Decision Making Lifecycle Cost value optimisation Resourcing Strategy and optimisation Shutdowns/ outage strt gy & optimisat n Ageing Assets Strategy Asset information Strategy Asset Knowledge Standards Asset Information systems Asset data and knowledge Maintenance Delivery Reliability Engineering and RCA Asset Operations Resource Management Shutdowns/ Outage Management Incident Response Asset Rationalisation and Disposal Sustainable development Weather and Climate change Assets & Systemr perf. & health monit g Assets and system change management Mngt review, audit and assurance Accounting Practices Stakeholder relations Copyright 2011 Institute of Asset Management* Reproduced with kind permission of the Institute of Asset Management. *Note the SSG overlay is for illustrative purposes and is not an Official IAM variant. 4
What does good looks like Power Copyright Gas 2011 Water Institute Renewables of Asset Management* Environment Reproduced with kind permission of the Institute of Asset Management. *Note the overlay is for illustrative purposes and is not an Official IAM variant. 5
and the reality Focus for this presentation Power Copyright Gas 2011 Water Institute Renewables of Asset Management* Environment Reproduced with kind permission of the Institute of Asset Management. *Note the overlay is for illustrative purposes and is not an Official IAM variant. 6
Drivers for connecting asset management processes Changing Regulation TOTEX regulation philosophy drives a more joined-up asset lifecycle management Connecting asset management processes is an important enabler Value for money Delivering more for less from the same assets Delivering as promised, on time, budget and outcome performance High Quality Information Better evidence = better decision making. But Is data quality validated at source?, is information up to date? Is it used effectively? Performance Management Controlling performance certainty through major change reducing financial, reputational, performance risks 7
Real-life challenges Changing a light-bulb on an elevated walkway Constructing a gas pipeline reception facility Typical challenges 8
Light-bulb moment Non-Retractable lighting columns Light bulb requiring replacement Walkway 3m Mobile (all-terrain) Elevated Work Platform 28m Elevated Walkway - requires lighting for regular inspection - Regular inspection mandated to protect reliability 9
Construct vs lifecycle view Situation pre-commissioning Situation post-commissioning Situation post-rbd and change Valves Valves Valves 14 km 14 km 14 km Gas pipeline Gas pipeline Gas pipeline Gas Reception Facility enclosure 3m 3m Gas Reception Facility enclosure 3m Gas Reception Facility enclosure Lighting Lighting Spare Lighting 10
Typical challenges Decisions (Promises) made during specification Forecast operating environment (Demand, economy, regulatory, technical legislation), performance expectations - Environment, Safety, Availability, Quality, lifecycle Cost Considerations during design? HAZOP (studies), RAMS studies (Reliability, Availability, Maintainability, Safety) Compromises made during build Timelines, project vs lifecycle focus, cost cutting, mandated scope changes Realities accepted during commission Timelines, project vs lifecycle focus, cost cutting, snagging accepted /remedied Assumptions made about operation and maintenance Criticality, Reliability-Block-Diagrams, risk mitigation, operation and maintenance policy, Organisational staffing and skills, business management system (not referring to IT) Managing the As-Built asset to deliver value to expectations Take-on management, Performance management, operation and maintenance, Health and Safety management, Asset information management, Configuration management 11
% Total attributed asset Life Cost practical solutions 75% 65% Customer Specification Design Specification - Environment - Safety - Availability - Quality - Cost Conceptual Design Project Schedule High Level System Structure - Process Flow Diagrams - Reliability Block Diagrams Lifecycle costing Risk Analysis Projects category Information Tech Project Organisation Install and Commission Plan to proactively take this on. O&M get in early. Detailed Design Early O&M contribution in specification and design Install / Commission plan Spares Management O&M Strategy QA / QC processes Lifecycle costing Detailed System Structure - Mechanical Flow - Reliability Block Risk Analysis Information Tech Organisation - O&M team - Install and Commissioning Life Cycle Asset Documentation - Reliability Data - Performance Data Lifecycle costing Risk Analysis Information Tech Organisation - Training - Recruitment Operations, maintenance & Disposal RCA Risk Analysis Performance Management Lifecycle costing Management of Maintenance work Work Identification Work Challenge and prioritisation Planning, scheduling and optimisation Work Execution Work Feedback Information Tech Organisation Power Copyright Gas 2009 Water D.Ramshaw Renewables Environment Reproduced with Kind Permission from D. Ramshaw. 12
Some lessons learned Connecting asset management processes impacts lifecycle costs Effective RAMS (reliability, availability, maintainability and safety) consideration as early as possible can make a big difference As over 75% of total lifecycle cost can be locked-in before operation, having an O&M influence early can cut total lifecycle cost Delegate more asset management accountability to the field? More monitoring and better skills ensure correct operation of the assets Customer requirements drives all phased of asset lifecycle not just design Establish lifecycle KPI s in design and track throughout Management of change during design, build and commission is important 13