Introduction to Asset Management: What to Know Before Diving Inenergycentral.fileburst.com/EC/slides_062019.pdf · 2019-06-20 · ISO 55001 in One Slide A Management System for Asset

June 2019

Introduction to Asset Management: What to Know Before Diving In

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Agenda

David CurtisAsset Managementin Electrical Utilities

Boudewijn NeijensKey Ingredients for an

Asset Management System

Your turn!Questions & Answers


How to Deploy Asset Management

• Context

• Leadership

• Planning

• Support

• Operation

• Performance Evaluation

• Improvement

Plan

Do

Check

Act


ISO 55001 - Why Should You Care

• A Management System for asset intensive organizations

• Compatible with other ISO Management Systems: 9001, 14001, 31000, 45001, etc.

• Increasingly adopted by regulators and legislators worldwide

• Electrical utilities = 23% of certified organizations

• It makes good business sense!


ISO 55001 in One SlideA Management System for Asset Management

• Value

– Assets exist to provide value to the organization and its stakeholders

– Value can be tangible or intangible; positive or negative

– Asset management enables realization of value

• Alignment (“Line of Sight”)

– Asset management objectives align with organizational objectives

– Asset management decisions, plans and activities (technical, financial and operational) collectively enable the achievement of AM objectives

• Leadership

– Leadership and culture are determinants of realization of value

– Roles, responsibilities and authorities for AM are clearly established

– Employees are aware, competent, and empowered

• Assurance

– AM gives assurance that assets will fulfil their required purpose

– Assurance is derived from effective governance, controlled processes and robust management of risks

– Monitoring, evaluation, review and continual improvement


ISO 55001 in One SlideA Management System for Asset Management

• Value

– Assets exist to provide value to the organization and its stakeholders

– Value can be tangible or intangible; positive or negative

– Asset management enables realization of value

• Alignment (“Line of Sight”)

– Asset management objectives align with organizational objectives

– Asset management decisions, plans and activities (technical, financial and operational) collectively enable the achievement of AM objectives

• Leadership

– Leadership and culture are determinants of realization of value

– Roles, responsibilities and authorities for AM are clearly established

– Employees are aware, competent, and empowered

• Assurance

– AM gives assurance that assets will fulfil their required purpose

– Assurance is derived from effective governance, controlled processes and robust management of risks

– Monitoring, evaluation, review and continual improvement


ISO 55001 in One Line

• Where to spend your last € / £ / $ / ¥ to gain the greatest incremental value for your organization

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The Two Common Asset Management Modes

TOP DOWN

BOTTOM UP


Bottom Up Asset Management

Top-Most Asset Manager is a Manager or Director

Limited support from Top Management

Numerous interfaces with other parts of the utility

Most common mode of Asset Management


Advantages of Bottom Up Asset Management

Easiest mode of Asset Management to Implement

Can be the most creative and innovative Asset Management Application

Focus is on understanding your assets


Disadvantages of Bottom Up Asset Management

Requires a collaborative and co-operative Corporate culture to work effectively

Results might be modest and incremental

Typically, all of the potential benefits may not be realized


Top Down Asset Management

Less common mode of Asset Management

Top-Most Asset Manager is a Senior Executive (e.g. COO, VP)

Leadership from the top of the organization

Asset Management leads other segments of the utility


Advantages of Top Down Asset Management

Asset Management is pursued from a strategic perspective

Management is committed and involved

Asset Management is seen as a key incentive to improve the business overall

Focus is on strategic alignment and ensuring all processes and organization elements are working together


Disadvantages of Top Down Asset Management

A more challenging mode of Asset Management to implement

Can be too Top Down and directive stifling creativity and initiative


The Ideal

The ideal course of action is to implement both Top Down and Bottom Up Asset Management

Top Down sets the strategic tone

Bottom Up focus on assets and activities that meet the objectives set by Top Management

The key to success is leadership involvement


Key Artefacts

Corporate Vision and Mission

Policy

Objectives

Strategy

SAMP, AMP

KPIs


You Need a Management System

• Like it or not… you’ll need a management system for Asset Management

– Just like you have a Safety Management System, etc.

• It can be internal and implicit

– Leverage systems and procedures in place

– But it might be weak and/or wrong

• Or it can based on external best practices and explicit

– ISO 55001 is the most popular system

• A consensus view on what “good” looks like

– Forces more rigor – and maybe significant change


Strategic Asset Management Plan

• SAMP helps align everybody

– Roles along the lifecycle of the assets

– Various functional groups

– Forces all to agree on a common plan

• Translate general business objectives into more tangible AM objectives and plans

– Ensures the long-term objectives are not lost

– Reconcile with bottom-up reality

• Express the value of an asset portfolio in economic terms

– Highlight risks, long term consequences, etc.

– Sets the rules of the game

• Can expose/highlight needs for change

StrategyPolicy

Asset PortfolioAM Capabilities

SAMP


Decision Making

Failure

Interval

Condition

RiskValue


Value Framework

• Defining and measuring value

– Includes risk mitigation

– Aligned with strategic objectives

– Considering all stakeholders

• Applies to all significant decisions

From: Enexis, NL


Supporting Systems

GIS

ASSET PERFORMANCE MANAGEMENT

PROJECT MANAGEMENT

FINANCIALSYSTEMS

WORK MANAGEMENT

ASSET INVESTMENT PLANNING

ASSET DATACOLLECTION

ASSET MANAGEMENT


Supporting Systems

GIS


PROJECT MANAGEMENT

FINANCIALSYSTEMS

WORK MANAGEMENT



ASSET MANAGEMENT


Supporting Systems

GIS


PROJECT MANAGEMENT

FINANCIALSYSTEMS (ERP)

WORK MANAGEMENT (EAM/CMMS)



ASSET MANAGEMENT


Supporting Systems: The Conventional Approach

GIS

PROJECT MANAGEMENT


ASSET MANAGEMENT






Supporting Systems: Thinking Inside Out

GIS

PROJECT MANAGEMENT




ASSET MANAGEMENT




Outside In vs. Inside Out Approach

• Outside In

– Focuses on asset data and transactional systems

– Big EAM and ERP renewal projects

– Takes forever

– Hard to show rapid success

– Extension of business as usual

• Inside Out

– Ramp up your analytical capabilities: Asset Performance Management and Asset Investment Planning

– Enable informed decision-making aligned with strategic objectives

– Define what data is actually valuable before spending to collect it

– Allows for quick wins

– Rethink Asset Management & break down silos

Decisions

Data


Assurance

• Where Asset Management goes to die

• We run out of steam before getting to Assurance

Assets Decisions AM System

Identify/understand asset risks?

Are we doing what we decided/promised?

Is the AMS delivering?

Are risk mitigation plans in place?

If not, are we still delivering the best possible outcomes?

If not, do we have an improvement plan in place?


Assurance

• Reviews

• Audit trails

• Documentation

– Internal

– External: regulators!

• Continuous Improvement

– Required for ISO 55001 (re)certification

– Any Management System needs it

Plan

Do

Check

Act


Summary

• How to Deploy Asset Management

• ISO 55000

• The Two Common Asset Management Modes

• The Ideal Mode

• Key Artefacts

• Decision Making

• Value Framework

• Supporting Systems

• Assurance


Reading Material

• ISO– New version of ISO 55002– Managing Assets & Asset Management– Additional guidance on financial aspects, etc.– See committee.iso.org/tc251

• IAM– Anatomy & Subject Specific Guidelines– Asset Management Application Guide– SAMP Development Guide– AM conferences around Europe & North America– See theiam.org

• Contacts– [email protected]– [email protected]

Documents

Introduction to Asset Management: What to Know Before Diving Inenergycentral.fileburst.com/EC/slides_062019.pdf · 2019-06-20 · ISO 55001 in One Slide A Management System for Asset