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19 Apr 2007 Slide 1
Assuring Asset Integrity
A lifecycle approach
Jim KennedyNational Chair
Asset Management CouncilAustralia
19 Apr 2007 Slide 2
What is AM Council?
• Learned society in Engineers Australia– 1300 individual members
– 117 corporate members
– 1 Supporter – Silcar (more in pipeline)
– Patron – Transfield Services
• Focussed on whole life asset management through an– AM Definition
– AM Framework model
– AM Technologies model
19 Apr 2007 Slide 3
What is integrity management?
• Military• Technical integrity. An item’s fitness-for-service, safety
and compliance with regulations for environmentalprotection
• Woodside –Shell• Integrity. Achieved when, under specified operating
conditions the risk of failure that would endanger the safety of personnel, the environment or asset value is tolerableand has been reduced to as low as reasonably practicable.
• AM Council• Asset Management. Lifecycle management of physical
assets to achieve the stated outputs of the enterprise
19 Apr 2007 Slide 4
AM - A lifecycle approach
• Asset lifecycle management
• Achieved through a core technical process
DisposeDisposeOperate and MaintainOperate and MaintainAcquireAcquirePlanPlanNon
Asset Solution
NonAsset
Solution
NonAsset
Solution SpecifySpecify DisposeDisposeDisposeAcquireAcquireAcquire Operate &Maintain
Operate &Maintain
Operate &Maintain ImproveImproveImproveConcept
Stakeholders
Services
ConceptConcept
StakeholdersStakeholders
ServicesServicesImprove Asset CapabilityImprove Asset Capability
Improve Process CapabilityImprove Process Capability
ConfigurationManagementConfigurationManagement
Systems Engineering
Demand Management
DemandAnalysisDemandAnalysis
AssetSolution
AssetSolution
Non AssetSolution
Non AssetSolution
AssetSolution
AssetSolution
Non AssetSolution
Non AssetSolution
NeedsDefinition
NeedsDefinition
ConceptExploration
ConceptExploration
NeedsDefinition
NeedsDefinition
ConceptExploration
ConceptExploration
NeedsDefinition
NeedsDefinition
ConceptExploration
ConceptExploration
ConceptValidationConcept
ValidationConcept
ValidationConcept
Validation
TotalProductive
Maintenance
OperationsManagement
OperationsManagementOperations
ManagementOperations
Management
Total QualityManagement
ProcessMonitoring
ProcessMonitoring
Total QualityManagement
ProcessMonitoring
ProcessMonitoring
Total QualityManagementTotal QualityManagement
ProcessMonitoring
ProcessMonitoring
Stakeholder NeedsStakeholder Needs
EngineeringChange
EngineeringChange
EngineeringChange
EngineeringChange
EngineeringChange
EngineeringChange
MaintenanceManagementMaintenanceManagement
IntegratedSupport
Spares and PersonnelSpares and Personnel
Manuals and TrainingManuals and Training
Support Equip & FaciltsSupport Equip & Facilts
Computer SupportComputer Support
Pkg, Hand, Stor & TransPkg, Hand, Stor & Trans
Spares and PersonnelSpares and Personnel
Manuals and TrainingManuals and Training
Support Equip & FaciltsSupport Equip & Facilts
Computer SupportComputer Support
Pkg, Hand, Stor & TransPkg, Hand, Stor & Trans
Ops. and Maint. PlanOps. and Maint. PlanOps & SupAnalysis
Ops & SupAnalysis
Construct/DisposeConstruct/DisposeConstruct/DisposeConstruct/DisposeConstruct/DisposeConstruct/Dispose
SpecificationSpecification DesignDesignSpecificationSpecification DesignDesignSpecificationSpecification DesignDesign
ProcessChangeProcessChangeProcessChangeProcessChange
ProcessAudit
ProcessAudit
ProcessAudit
ProcessAudit
19 Apr 2007 Slide 5
AM/IM – Is there a difference?
• Extensive written integrity rules for many:– Aerospace, Rail, Power, Oil and Gas, Military
• Common elements– Whole of life management
• Specify/design, Build/buy, Use/maintain/improve, Dispose
– Authorised persons, processes, tools and info for:• Creating and disposing of assets
• Sustaining assets thru maintenance and alignment
• But still major integrity breaches– Aerospace QLD 2005 (17 deaths)
– Waterfall NSW 2003 (7 deaths 40 serious injuries)
– Longford VIC 1998 (2 deaths 8 serious injuries)
• Why? - Is it that there is no whole of life approach?
19 Apr 2007 Slide 6
AM Technologies Model
– Provides process rigor to the management of a risky life• Assures statutory compliance - evident due diligence
• Focuses on outcomes for stakeholders
• Supported by AS/NZS/ISO/IEC 15288:2003– Systems engineering – Systems lifecycle processes
– Applies key integrity disciplines (shown following)• Demand Management
• Systems Engineering (classic view)
• Integrated (logistic) support
• Total Productive Maintenance
• Total Quality Management
• Configuration Management
19 Apr 2007 Slide 7
Core disciplines
ConfigurationManagementConfigurationManagement
Systems Engineering
Demand Management
DemandAnalysisDemandAnalysis
AssetSolution
AssetSolution
Non AssetSolution
Non AssetSolution
AssetSolution
AssetSolution
Non AssetSolution
Non AssetSolution
NeedsDefinition
NeedsDefinition
ConceptExploration
ConceptExploration
NeedsDefinition
NeedsDefinition
ConceptExploration
ConceptExploration
NeedsDefinition
NeedsDefinition
ConceptExploration
ConceptExploration
ConceptValidationConcept
ValidationConcept
ValidationConcept
Validation
TotalProductive
Maintenance
OperationsManagement
OperationsManagementOperations
ManagementOperations
Management
Total QualityManagement
ProcessMonitoring
ProcessMonitoring
Total QualityManagement
ProcessMonitoring
ProcessMonitoring
Total QualityManagementTotal QualityManagement
ProcessMonitoring
ProcessMonitoring
Stakeholder NeedsStakeholder Needs
EngineeringChange
EngineeringChange
EngineeringChange
EngineeringChange
EngineeringChange
EngineeringChange
MaintenanceManagementMaintenanceManagement
IntegratedSupport
Spares and PersonnelSpares and Personnel
Manuals and TrainingManuals and Training
Support Equip & FaciltsSupport Equip & Facilts
Computer SupportComputer Support
Pkg, Hand, Stor & TransPkg, Hand, Stor & Trans
Spares and PersonnelSpares and Personnel
Manuals and TrainingManuals and Training
Support Equip & FaciltsSupport Equip & Facilts
Computer SupportComputer Support
Pkg, Hand, Stor & TransPkg, Hand, Stor & Trans
Ops. and Maint. PlanOps. and Maint. PlanOps & SupAnalysis
Ops & SupAnalysis
Construct/DisposeConstruct/DisposeConstruct/DisposeConstruct/DisposeConstruct/DisposeConstruct/Dispose
SpecificationSpecification DesignDesignSpecificationSpecification DesignDesignSpecificationSpecification DesignDesign
ProcessChangeProcessChangeProcessChangeProcessChange
ProcessAudit
ProcessAudit
ProcessAudit
ProcessAudit
19 Apr 2007 Slide 8
Creating Capability
ConfigurationManagementConfigurationManagement
Systems Engineering
Demand Management
TotalProductive
Maintenance
Total QualityManagementTotal QualityManagementTotal QualityManagementTotal QualityManagement
Stakeholder NeedsStakeholder NeedsIntegratedSupport
OperationsManagement
OperationsManagementOperations
ManagementOperations
Management
MaintenanceManagementMaintenanceManagementOps. and Maint. PlanOps. and Maint. PlanOps & Sup
AnalysisOps & SupAnalysis
Construct/DisposeConstruct/DisposeConstruct/DisposeConstruct/DisposeConstruct/DisposeConstruct/Dispose
SpecificationSpecification DesignDesignSpecificationSpecification DesignDesignSpecificationSpecification DesignDesign
19 Apr 2007 Slide 9
Sustaining Capability
ConfigurationManagementConfigurationManagement
Systems Engineering
Demand Management
TotalProductive
Maintenance
Total QualityManagementTotal QualityManagementTotal QualityManagementTotal QualityManagement
Stakeholder NeedsStakeholder NeedsIntegratedSupport
OperationsManagement
OperationsManagementOperations
ManagementOperations
Management
MaintenanceManagementMaintenanceManagementOps. and Maint. PlanOps. and Maint. PlanOps & Sup
AnalysisOps & SupAnalysis
Construct/DisposeConstruct/DisposeConstruct/DisposeConstruct/DisposeConstruct/DisposeConstruct/Dispose
SpecificationSpecification DesignDesignSpecificationSpecification DesignDesignSpecificationSpecification DesignDesign
EngineeringChange
EngineeringChange
EngineeringChange
EngineeringChange
EngineeringChange
EngineeringChange Process
ChangeProcessChangeProcessChangeProcessChange
ProcessMonitoring
ProcessMonitoringProcess
MonitoringProcess
MonitoringProcess
MonitoringProcess
Monitoring
ProcessAudit
ProcessAudit
ProcessAudit
ProcessAudit
19 Apr 2007 Slide 10
Assuring integrity outcomes
• Design it right– Specifications with measurable outputs including support– Flow down of requirements that are verifiable– Uses authorised people, processes, tools and information– Outputs are verified and validated
• Deliver it right (construct, use/maintain and dispose)– Construct to, and use/maintain to, the designed solution– Uses authorised people, processes, tools and information– Sustain alignment with change in function and in asset– Dispose to a plan that is also designed
• Conduct audits (some independent) at multiple levels
19 Apr 2007 Slide 11
Integrity - a design objective
• Integrity assurance processes are based on risk, e.g.– Failure Modes Effect and Criticality Analysis (FMECA)
– Reliability Centered Maintenance (RCM)
– Fault/Event Tree analysis (FTA/ETA)
– Hazop/Hazan
– Human Reliability Analysis (HRA)
– Reliability, maintainability and supportability analysis (Ao)
– Repair or replace economic decisions
• Many standards and handbooks are available:– The really good ones are often public domain
19 Apr 2007 Slide 12
Where can you find out how?
• AM Council - Fundamentals of Asset Management course– All models here are from our one day course
• Developing “Body of Knowledge”– Coming soon to the AM Council Website
• Important role of configuration management:– A high priority for a subsidiary AM Council course
– Few get it right:• Is your asset register at right level and 100% correct?
• Do you know the function of all your equipment?
• Do you know their physical composition?
19 Apr 2007 Slide 13
Summary
• Asset Integrity assured by an Asset Management discipline that:– Takes a quality based life cycle approach
– Integrates process, leadership and culture
– Focuses on measurable and verifiable outcomes
– Applies proven processes
– Has a peak body to provide leadership• In Australia – the Asset Management Council