General
Asset Management
What is an ‘Asset’?Anything from which an organisation derives value.
How would you define ‘Asset Management’?The coordinated activity of an organisation to realise value from its assets.
How would you define an ‘Asset Management System’?A set of interrelated or interacting elements of an organisation to establish AM Policy and AM Objectives; and processes* to achieve those objectives.
*processes include people, resources, processes, information and technology
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General
The difference in taking a strategic approach –or who is going to derive most value out of their investment
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versus
StrategicTactical
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Does One Need a Management System?
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Faster, cheaper improved, cost, risk
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Establishing the asset management system
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Stakeholders
Business Objectives
AM Policy
Strategic Asset Management PlanSAMP
Operations & Asset Management Plans
Gap Analysis
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Aligning Organisational Objectives to AM Objectives
1 Stakeholder adoption and buy-in - by understanding needs & demonstrating the contribution that AM can make to XXXX
2 Strong Governance and Accountability – achieved through an active and engaged AM steering committee, workforce and systems
3 Asset performance measured and optimised – achieved through comprehensive KPI’s and effective risk management
4 Creating capacity & capability – AM viewed as a differentiator through competency and capacity improvement
5 Effective implementation of initiatives – seamless integration and resource allocation across initiatives and capital projects
6 Continuous Improvement of the AM System – through effective audit and lessons learned
1 Achieve sustainable excellence in providing electricity and water services to customers
2 Manage energy demand & supply in a sustainable and excellent manner
3 Manage desalinated water demand & supply in a sustainable and excellent manner
4 Rationalise the usage of energy and desalinated water and reduce wastage to ensure sustainable development
5 Ensure that all administrative services are in accordance with the standards of quality, efficiency and transparency
6 Instill an innovation culture within the corporate working environment
Organisational objectives AM objectives
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The Sankey Diagram (shown below), shows which XXXX AM objectives contribute to which XXXX organisational objectives.
Refer to XXXX’s “Asset Management Objectives” document for more detail alignment between XXXX’s organizational and asset management objectives.
objectives aligns to its organisational objectives
1 Stakeholder adoption and buy-in - by understanding needs & demonstrating the contribution that AM can make to XXXX
2 Strong Governance and Accountability – achieved through an active and engaged AM steering committee, workforce and systems
3 Asset performance measured and optimised – achieved through comprehensive KPI’s and effective risk management
4 Creating capacity & capability – AM viewed as a differentiator through competency and capacity improvement
5 Effective implementation of initiatives – seamless integration and resource allocation across initiatives and capital projects
6 Continuous Improvement of the AM System – through effective audit and lessons learned
1 Achieve sustainable excellence in providing electricity and water services to customers
2 Manage energy demand & supply in a sustainable and excellent manner
3 Manage desalinated water demand & supply in a sustainable and excellent manner
4 Rationalise the usage of energy and desalinated water and reduce wastage to ensure sustainable development
5 Ensure that all administrative services are in accordance with the standards of quality, efficiency and transparency
6 Instill an innovation culture within the corporate working environment
Organisational objectives AM objectives
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ISO 5500x suite of standards
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4. Context of the organisation
8. Operation
9. Performance
10. Improvement
7. Support
6. Planning
5. LeadershipISO 55000: Asset management – Overview, principles and terminology
ISO 55002: Asset management – Management systems - Guidelines on the
application of ISO 55001
ISO 55001: Asset management – Management systems - Requirements
ISO
550
0x S
uite
of A
M S
tand
ards
Nonconformity & corrective action.Preventative action.Continual improvement.
10
Monitoring, measurement, analysis and evaluation.Internal audit & management review.9
Operational planning & control.Implement actions within the SAMP.Management of change.Outsourcing.Documentation.
8
Resources, awareness, communication, information requirements.Define competency requirements.
7
Actions to address risk & opportunity for AM system with supporting plans of how to achieve them. 6
Leadership, sponsorship & commitment.Policy.Roles, responsibilities & authorities.Communication of importance through the organisation.Promoting cross functional support.
5
Understand the organisation and it’s context.Understand needs and expectations of shareholders, with both financial & non financial requirements.Define scope & boundaries of the system.Definition of asset management goals.Consistency of risk management approach.Define interactions with other systems.
4
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Conformance vs performance
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Conformance (manage risk)
• Requirements against a standard
• Preventing value from slipping
• Passive activity• Does not reinforce
improvement.• Implies a minimum standard• Mandated.
Performance (to improve)
• A recognisedaccomplishment
• Implies an advance• Exceeds a standard• Implies achievement• Creating and enhancing
value• Driven by a quest for
improvement/getting better / excellence
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So what does an Asset Management, Management System provide?
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Organisational Strategic Plan
Asset Management Execution Plan
AM Policy
Strategic AM Plan
Whole Life-cycle Decision Making
Risk Driven Decision Making
Understanding Risk &
Opportunity
Modelling Simulation Criticality
Establishing a Reliability
Basis
Asset Care, Spare parts &
services
Condition Management
Data Integrity, Information,
Asset Condition
Integrated Planning
Supply chain, Maintenance,
Operations, Investment
Managed Focused
Improvement
Defect Elimination, Continuous
Improvement, TPM
Managing Financials
Totex, Prioritisation,
Budgeting, Reporting
Asset Data Configuration & Information Management
STR
ATE
GIC
DEL
IVER
Y FO
CU
SED
FOU
ND
ATI
ON
AL
Performance Measurement
Reporting, Knowledge
Management
Competency Development
Organisational Readiness
OrganisationalAlignment, Resourcing Capability & Competence
Value Realisation
Translating the Strategic Plan
Stakeholder Expectations
Copyright 2017 - Gaussian Engineering
A long term strategic view aligned to business objectives
A clear definition of what constitutes strategic value
Aligned objectives – across teams and divisions
A basis for transparent and consistent decision making
Risk based decision making from a perspective of knowledge
A measureable accountable value delivery mechanism
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Principles of Asset Management
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ValueLine of Sight
Leadership
Life Cycle Activities
Decision Making
Assurance AssetManagement
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Value from asset management
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Value Contribution
Dyna
mic
Tens
ion
Financial
Long term strategic view
Risk
Governance & Compliance
Values
Competence
Strategic Asset
Management
Value LeversOperational Excellence
Reduce operating
costs
Increaseprofits
Increase revenue
Reduce workingcapital
Reduce fixed
capital
Reducecapitalcosts
Capital Productivity
Asset Management
(ownership of assets in alignment
with business objectives)
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Is your Organisation ready?
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Abraham Maslow
Physiological NeedsBasic life – food, water, warmth, rest
Safety NeedsSecurity, safety, order, law, stability
Belongingness & RelationshipGroup belonging, trust,
Connectedness & acceptance
Esteem NeedsPrestige, respect
& accomplishment
Self ActualisationAchieving full potential,
Personal growth, fulfillment Transform
Progress
Survival
Financial Viability
Safety NeedsShort term focus, temporary uncoordinated
achievements
Belongingness & RelationshipSustainable maturity growth
Esteem NeedsContinued
Strategic valuecreation
Self ActualisationLegacy for the
next generation
IndividualsOrganisations
Transform
Progress
Survival
Self ActualisationAchieving full potential,
Personal growth, fulfillment
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Benefits from an ISO 55000 Asset Management Investment (Utilities)
Indicative benefits from an ISO 55000 Asset Management Investment in asset intensive continuous production environments.