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.