Policy, Strategy & Plans

Policy, Strategy & PlansBeing strategic about asset management

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General

What is a strategy?

Page | 2

• Steps towards an outcome (high level)• Complexity• Priority• Change / redirection• Coordination between people, teams &

resources• Timing• Limited resources• Medium to long term• 1 + 1 = 9

What’s the use of running if you are not

on the right road.

- German proverb

General

The origins of strategic thinking

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“War is an area of uncertainty; three quarters of the things on which all action in War is based on are lying in a fog of uncertainty to a greater or lesser extent.

The first thing (needed) here is a fine, piercing mind, to feel out the truth with the measure of its judgment.”

The Pre-Eminent Strategic TheoristCarl Philipp Gottfried "Gottlieb" von Clausewitz

General

What is a Policy?

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A principle or set of rules to guide decisions and achieve rational outcomes.

A Policy can be considered as a "Statement of Intent" or a "Commitment".For that reason at least, the decision-makers can be held accountable for their "Policy”.

Policies assist in both subjective and objective decision making.

Asset Management Policy

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General

ISO 55000 defines a policy as:“intentions and direction of an organisation as formally expressed by its top management”.


AM Policy

Strategic Organisational PlanOrganisational vision, mission,

goals & objectives

Asset Management PolicyPrinciples, requirements and responsibilities for AM,

linked to organisational strategic objectives.

Strategic Asset Management Plan (SAMP)AM objectives, AM practices, action plans and AM

improvements, audit & review processes.

Asset Management Plans (AMPs)Asset description, levels of service, asset risk

management & lifecycle activities.

Operational Plans / Work programsGuide day to day activities of staff and contractors.

Source: IIMM (2015) Source: ISO 55000 (2014)

Asset management

policy

General

ISO 55001 & AM Policy

Contains top level objectives

Outlines AM Principles, providing a framework for setting AM Objectives

Demonstrates Executive level commitment to AM

Includes Commitment to continual improvement

Is a tool for communicating principles & intent to internal & external stakeholders

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Asset Management Policy

Clear, goal focussed, simple

and concise

Strategic Asset Management Plan (SAMP)

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General

ISO 55000 defines an AMP as:“documented information that specifies how organisational objectives are to be converted into asset management objectives, the approach for developing asset management plan, and the role of the asset management system in supporting achievement of the asset management objectives”.


SAMP


goals & objectives









Strategic asset management plan

(SAMP)Asset management

objectives

General

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Defining the scope of asset management (ISO 55000)

Business Management

Manage Asset Portfolio

Manage Asset Systems

Manage AssetsCreate /

Acquire Utilise Maintain Renew / Dispose

Individual physical

assets

Set of physical assets that interact and/or are

interrelated

Manage asset portfolio

All the assets of the business, including: physical, human, information, financial and

intangible assets

Scope of Asset

Management

General

What is a SAMP?

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- IAM, November 2017

Strategic Asset Management Plan (SAMP) :documented information that specifies howorganisational objectives are to be convertedinto asset management objectives, the approachfor developing asset management plans, andthe role of the asset management system insupporting achievement of the assetmanagement objectives. – ISO 55000:2014

General

What does the SAMP do?


The asset management strategy converts the objectives of the organisational strategic plan and the asset

management policy into a high-level, long-term action plan for the assets and/or asset system(s), the asset portfolio

and/or the asset management system. – ISO 55000:2014

General

What a SAMP isn’t

A guidebook/ handbook/

manual to AM

1

A definition of processes

2

How assets specific assets

should be managed

3

An organisational restructuring

document

4

An Asset Management

Plan

5

An execution plan or “how-to”

document

6

General

Benefits of a SAMP


Owners, Investors & Sponsors

§ Reassures value-for-money decision-making§ Reassures ROIC and risk management§ Provides transparent rationale for activities that

are aligned with the mission and objectives of the company

Regulators, customers & other external

stakeholders

§ Reassures that all priorities and actions are logical, suitable and deliverable

§ Provides clarity to what lies ahead§ Acts as a negotiating platform between

stakeholders for direction of the organisation

Department leaders, middle management,functional specialists

§ Provides clarify of shared purpose between departments

§ Helps to eliminate silos and their barriers§ Helps incorporate multiple view points§ Highlights departmental responsibilities in

achieving organisation objectives

Workforce

§ Helps explain why certain work is needed§ A better understanding of purpose, context,

desired outcomes (business rationale)§ Provides a platform for contribution to the

organisation’s direction

General

Our approach to developing a SAMP

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Shouldn’t be a huge document

6

Visual and draws attention

1Accessible and

easy to read

2Satisfies

requirements of ISO 55000

3

Based on what’s best for the organisation

5

Easy to edit and keep dynamic

4

Structured around AM

delivery elements

7

General

Contents of a SAMP

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It is intended that the SAMP should be executive-level documented information which presents a narrative on why and what the organization plans to do in managing its asset portfolio and developing its asset management capability, in order to enable the achievement of the organizational objectives; it can also provide references to other documented information, for detailed information or guidance. –ISO 55000:2014

General

Understanding the basic layout

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Line of Sight

Leadership

Life Cycle Activities

Decision Making

Assurance

This block defines the short-term initiatives supporting the sub strategy

This block defines the medium-to-long term initiatives supporting the sub strategy

This block defines the documentation, including business processes needed to execute the sub strategy

˜These blocks define the value contribution that executing the sub strategy will contribute towards.

Each of the icons represent the major value domain of the contribution

General

SAMP Example (Policy, Strategy & Execution)

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Short-to-Medium Term• Policy & SAMP developed, adopted and signed off by

top management• Communication plan for the AM Policy, SAMP &

Execution Plan• Contextualize Execution Plan for the individual sites,

as needed

Medium-to-Long Term• Formal review of the AM Policy, SAMP and Execution

Plan

Supporting AM Documentation• AM Policy • SAMP (Strategic Asset Management Plan)• Execution Plan Provides an ability to rank priorities in order to allocate

resources and stage timing of initiatives

It provides FEWA with an effective, accountable, and measurable framework for executing Asset Management, aligned to strategic objectives

A visual end-to-end view of Asset Management

The framework identifies and directs where cross functional integration is required

It provides direction, focusing on sustainable risk managed performance, directing effort, and investment towards rational outcomes

Asset Management Plan (AMP)

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General

ISO 55000 defines an AMP as:“documented information that specifies the activities, resources and timescales required for an individual asset, or grouping of assets, to achieve the organisation’s asset management objectives”.


Introduction to AMPs


goals & objectives









Asset management plans

Implementation of asset management

plans

Notes:• See ISO 55001 Clause 6.2.2 for

AMP requirements• Clause 6.2.2 is not prescriptive• Next, is our practical interpretation

of ISO 55001 and Clause 6.2.2 with regards to an AMP

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AMP Structure1.3 Folder Structure / Table of Contents

2020-2029Asset Management Plan (AMP) for:

ABB’s ELK-04 132 kV Gas Insulated Switchgear (GIS)

May 2020

General

01 Introduction


AMP Structure

1.1 AMS framework 1.2 Asset background

1.4 Scope of application

1.3 Folder Structure / Table of Contents

General

02 Asset Class(es) Information


AMP Structure

2.1 & 2.2 AMP Asset Class = ABB ELK-04 132 kV Gas Insulated Switchgear (GIS)


General

02 Asset Class(es) Information


AMP Structure

2.3 Asset quantity distribution

2.4 Asset age profile 2.5 Asset condition distribution


General

03 Levels of Service


AMP Structure

3.1 & 3.2 Current and Desired (Targeted)


General

04 Asset Risk Management Plan


AMP Structure

04 ISO 31000 risk management process

Asset risk matrix

Update asset risk register


General

05 Health, Safety & Environment


AMP Structure1.3 Folder Structure / Table of Contents

General

06 Life Cycle Management


AMP Structure

6.2 OEM recommendations

Failure Modes and Effects Analysis (FMEA)

Updated maintenance tactics library


General

07 Financial Summary


AMP Structure

7.1 OpEx budget forecast

7.2 CapEx budget forecast

• Acquisition costs • Renewal / Upgrade

costs• Disposal costs• Etc.

• Scheduled / preventative maintenance costs

• Repairs / unscheduled maintenance costs

• Operating costs• Etc.


General

08 Roles & Responsibilities


AMP Structure

08 Responsibility assignment matrix (RACI - Responsibility, Accountability, Consulted, Informed)


General

09 Improvement Projects


AMP Structure

9.1 Active Projects

9.2 Future Projects

9.3 Completed Projects


General

10 Implementation and Review & 11 References


AMP Structure

10 Implementation and Review

11 References


General

► Start today, and do your first AMP badly► Update and review annually

► As your organisation maturity grow, start digitising the AMP

► At least initially, only focus of high risk (critical assets)

► Ensure all AMPs reinforce the AM Policy, SAMP and AM &

organisation objectives

► Look online for various AMP examples

► Remember the ISO 55001 AMP requirements (Clause 6.2.2)


Conclusions

Documents

Policy, Strategy & Plans