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Integrity delivery through
Asset Management System
Standard AS 55001
Presented by: Ernst Krauss, CFAM
Date March 2015
Summary
Project delivery needs rework to become more effective
Integrity delivery needs to be part of Project delivery
Organisations can no longer afford Project failures at the scale experienced in the past
AS 55001 could provide a vehicle to achieve better project delivery, increase productivity, increase return on investment
Project delivery
Various studies show a low success rate of Projects
In Australia, approximately 32% of Projects are successful
Megaprojects >$ 2b have about 60% success rate globally
Project success only measured in terms of schedule and cost
Other success factors?
4
Project Outcomes delivered
Governance
Pro
ject
Ma
na
ge
me
nt Understand Business Requirements
Integrity / Reliability / Production
Support functions
Inte
gra
tio
n F
un
ctio
n
Operational Readiness
Commissioning & Start up
Contracts and Suppliers
Delivery of Operational Facilities not Hardware alone
5
Some facts All Projects are subject to change
- How managed
- How communicated
- How executed
How do operational requirements keep up with changes?
• How competent are Project personnel - Personnel selection on previous involvement
- Recognition of new technologies - Understanding of Operating context and requirements
• Management practices
- Interpersonal skills - Delivery of Hardware
- Balance of cost / schedule / ‘quality’
Factors Affecting Delivery:
On Time
- Delivery to schedule – highly visible
- Processes / Productivity
On Budget
- Control of Budgets– highly visible
- Change Control
Required Quality
- Inherent Integrity / Reliability Availability/Maintainability/ Supportability
- OPEX
Sustainability– the 4th Dimension
- Fully functional Assets
- People competency
- Functioning Risk / Integrity / Operating Management System
Advisian’s 4th Dimension:
On Time
On Budget Quality
Traditional Project delivery focus
7
Asset Management Synthesis
Stakeholders
Leadership
Organsiational Objectives
Asset Management Objectives
Processes and
Enablers
Roles and Responsibilities
Decision Processes
Risk Management
Capability & Culture
Performance Monitoring / Improvement
Services / Commodities
Enable service delivery
Production / Integrity Assurance
Strategic Asset Management Framework
Service requirements and Objectives
Strategic Asset Plans Asset Management Plan Integrity Management Plan Capital Investment Plan Maintenance plans Asset retention planning Disposal Plan (including obsolescence Management)
AS / ISO 55000 - the 7 requirements The Asset Management System It encompasses these elements: 1) Organizational context 2) Leadership 3) Planning 4) Support 5) Operation 6) Performance evaluation 7) Improvement
10
AS 55001 support processes Systems Engineering
Acquisition processes and associated standards
Support analyses and logistics planning
Configuration management
Operations and Maintenance plans and processes
Continuous improvement processes
These processes describe a supportive delivery system that together with the risk, financial, organisational and other none technical requirements of the AS 55001 standard can result in the redefinition of effective project delivery
11
Improved Process delivery
Benefits to Operations: • Improved Start up (reaching full production faster ) • Fully functional Organisation • Eliminate requirements to adjust organisation to suit issues • Clarity of roles, responsibilities and requirements to safely operate and improve • All systems and measurements in place that demonstrate Operational Integrity • Efficiently manage risk , cost, performance
Manage Requirements
Requirements Management is concerned with:
Understanding the goals of the organisation and its stakeholders (or customers)
Transformation of the goals into functions and the constraints applicable to the development of Assets or Services
These directly link to the AS 55001 sections on context and purpose:
- Understanding the context of an organisation and
- Transforming strategic intent into tangible plans and actions
Integrity matters
Advisian 14
Integrity relevance
Safety / Risk management
Operations / Maintenance
Integrity boundary
Corrosion / condition
Activities and competencies
Plant control and limits of permitted operations
Make safe / SCE’s
Integrity Requirements Management
Provides the opportunity to –
Engage in a systematic approach extracting, documenting and organising integrity systems requirements
Define the integrity system, documentation, processes, organisational structures and responsibilities necessary to manage and demonstrate integrity of the whole production system form the start of the operation
Provide critical input into strategic and operational Asset Management Plans that chart the major activities, capital expenditure and OPEX plans to achieve efficiency in operations management
17
Projects delivering Requirements…
…provides benefits through -
Real value creation by linking risk, integrity, cost and performance capability of the deliverables and support systems
Avoidance of Value erosion by -
- Deliverables assurance (Stakeholder needs)
- Changes no longer obscure original intent
- Closer link with Stakeholders through regular communication and validation of achievements
- Integrity of project agreement and scope
All deliverables and outcomes identified during the project phase and are incorporated as operational structure into the Asset Life Cycle
18
Shared view of managing Assets and Integrity
"If any one idea about leadership has inspired organizations for thousands of years, it's the capacity to hold a shared picture of the future we seek to create“ Senge “The fifth Discipline”
• Projects need to deliver to the Business requirements
• Project delivery needs to include Operations requirements
• Functional performance requirements provide guidance for expected outcomes during useful Asset life