maintenance within physical asset management€¦ · terminologia standardi sekä en 15341...

Maintenance within physical asset

management

Author: Kari Komonen

Content

General instructions (in Finnish)

Introduction

Summary

1. ISO 5500X standards

2. EN 16646 ‘Maintenance within physical asset management’

3. Organizational context

4. Physical asset management processes

5. Life-cycle processes

6. Performance monitoring

7. Physical asset management competences

2

General instructions (in Finnish)

3

Tervetuloa luentoaineiston käyttäjäksi

• Tämän luentoaineiston on laatinut Kari Komonen SFS/METSTAN

toimeksiannosta. Materiaalia on valmistelun eri vaiheissa kommentoinut

METSTAN henkilöstö. Kari Komonen on ollut kyseessä olevan EN

16646 ’Maintenance within Physical Asset Management’ –standardin

laadintaryhmän puheenjohtajana. Kalvosarja on tuotettu SFS:n

projektirahoituksella.

• Aineisto on suunnattu ammattikorkeakoulujen ja yliopistojen opettajille ja

opiskelijoille. Kalvosarja esittelee omaisuuden hallinnan keskeiset

standardit periaatteet ja käsitteet sekä tarjoaa näkökulmia standardien

hyödyntämiseen pääpainon ollessa EN 16646 standardissa.

• Tavoitteena on tukea fyysisen omaisuuden hallinnan sisällyttämistä

opetussuunnitelmiin ja kurssien sisältöön. Tässä kalvosarjassa ei

käsitellä kaikkia standardeihin sisältyviä yksityiskohtia, vaan yleisen

johdannon jälkeen korostetaan omaisuuden hallinnan pääkohtia.

4

Aineiston käyttö ja tekijänoikeudet

• Tämän luentoaineiston tekijänoikeudet omistaa Suomen

Standardisoimisliitto SFS ry.

• Esitystä saa vapaasti käyttää opetustarkoituksiin ja sitä saa

tarvittaessa muokata. Aineistoa lainattaessa lähde tulee

mainita.

• Aineiston käyttö kaupallisiin tarkoituksiin on kielletty.

• Tämä materiaali on päivitetty viimeksi 15.1.2016. Varmista

tiedon ajantasaisuus voimassaolevista standardeista.

5

Standardien soveltaminen ja tulkitseminen

• Kukin organisaatio soveltaa standardeja itselleen parhaiten

sopivalla tavalla pitäytyen standardien tarkoituksessa tai

vaatimuksissa. Soveltaminen voi olla hyvinkin innovatiivista.

• Tämä materiaali ei ole standardin tulkintaa. Mikäli tämä materiaali

on, tai tuntuu olevan, ristiriidassa standardin kanssa, standardi

pätee. Tulkintaan liittyviä kysymyksiä voi osoittaa METSTAn

kunnossapitokomitealle.

• Koska PowerPoint-esitykset ovat hyvin rajallisia tiedon

välittämisessä ja ymmärryksen hankkimisessa, suosittelemme

perehtymistä ko. standardeihin, muihin ISOn, IEC:n, CENin ja

SFS:n julkaisuihin sekä niiden internetsivujen aineistoihin sekä

alan kirjallisuuteen standardien perusteiden ymmärtämiseksi.

6

Luku- / käyttöohje

• Tämä aineisto kattaa koko EN 16646 standardin perusideat ja

päälinjat

• Se ei kuitenkaan kata kaikkia yksityiskohtia ja selityksiä

• Myöskään yleisesti tunnettuja liikkeenjohtamisen käsitteitä ei ole

avattu

• Luennoitsijan/opettajan tulee tutustua myös itse standardiin, jotta

on mahdollista havaita miltä osin opetusmateriaali ei sisällä

kaikkia standardin yksityiskohtia ja selityksiä

• Opettajan olisi hyvä jossain määrin hallita myös ISO 55000

Asset Management – Overview, Principles and Terminology -

standardin sekä eräiden kunnossapidon standardien päälinjoja

• Tällaisia kunnossapidon standardeja ovat mm. EN 13306

Terminologia standardi sekä EN 15341 standardi.

7

Introduction

8

Why do we, today, need physical asset

management more than before

There are many reasons why physical asset management has today become the

more essential part of management activities e.g.:

• globalization and increasing competition,

• growing financial, safety and environmental risks,

• radical change in business strategy – long term vs. short term,

• attitudes towards physical assets have changed – nowadays it is more common

that the length of the ownership is not the same as the length of the whole item

life,

• growth of capital intensity in some areas of industry,

• growing turbulence in the market,

• pressure for higher profitability and return on assets,

• aging of asset systems,

• increased pressure to improve added value of maintenance,

• more complicated and uncertain decision environment,

• increased requirements from the safety and environmental point of view,

• ‘silo’ behaviour which keeps maintenance and other life cycle processes

separated,9

Benefits of improved physical asset

management activities

Improved physical asset management activities offer e.g.

• Higher return on physical assets

• Higher short and long term profitability

• Better stakeholder satisfaction

– Such as customer satisfaction

• Stronger trust on the management of the organizations

• Lower safety and environmental risk

• Improved products and services

• Better demonstrated capabilities

• Higher efficiency and effectiveness of operations

10

Evidence about

The importance of the physical asset management can be

seen e.g. as

• Increasing number of courses and conferences

• Increasing number of books on physical asset management

• Increasing number of new standards and guidelines

• Increasing number of certified organizations

• Increasing number of new positions in organizations such

as asset managers

11

Improve asset management in order to

avoid deterioration of assets

12

Time

Pro

fita

bili

ty a

nd

su

stai

nab

ility

Ret

urn

on

ph

ysic

al a

sset

s

Low

High

Potential gap

Development without improved asset managementContinue as before

Development with improved, systematic and systemic asset management system

The impact of the maintenance activities

13

The maintenance function has a strong impact on the short and long term profitability of theorganization. Therefore, its interaction with the other functions should be organized in a systematic and systemic way. This task is an important part of physical asset management.

Effective

maintenance

Competitive maintenance cost

Effective production

control

High availability, performance rate and yield (OEE)

Low productioncost

Trouble-free production

High reliability of

deliveries

Low material and

intermediate productstocks

Low reserve stocks

and product stocks

High profit and high capital turnover

Low invested capital

High operating income

Lower investments

High return on

physical assets

Getting help for the development of asset

management

• In order to develop physical asset management activities

and in order to establish improved modes of operations

supporting tools are available

• Several new standards give help when developing

management system for physical assets and

• For organization specific requirements for the assets

• Standards also help to develop cooperation between

different organizational functions and life-cycles stages

• And define clear roles for the maintenance function within

the organizations’ asset management processes

14

Asset Management - standards

At the moment there five(5) well known asset management standards:

• BSI PAS 55: Technical specification

• ISO 55000: 2014 Asset Management – Overview, Principles and

Terminology

• ISO 55001: 2014 ”Asset Management. Management Systems.

Requirements”


Guidelines for the Application of ISO 55001”

• EN 16646: 2014 ”Maintenance within Physical Asset Management”

15

The main purpose of the asset

management standards

PAS 55

• The first well-known and adapted asset management system

standard was PAS 55

• First published in 2004 and revised in 2008

• BSI PAS 55 is a technical specification for British use,

• It has been translated into many other languages and

• Been used as a basis for certification in organizations in several

countries such as Finland, Netherlands etc.

16


management standards ISO 55000-ISO 55002

• ISO 55001 (supported by ISO 55000 and 55002) is a management system

standard for asset management and it has been launched in 2014

• The first initiative was to transform PAS 55 to the global standard

• However, the ISO framework-standard for all the management system

standards gave a new direction

• It is also a basis for certification of the asset management system (compare

with e.g. Quality Management)

• Standards include overview, principles and terminology on asset management,

requirements for asset management system and application notes

• This standard is intended to be used for managing physical assets in particular,

but it can also be applied to other asset types

• ISO 55002 Guidelines for the Application of ISO 55001 is under revision at the

moment

17


management standards EN 16646

• As described in the earlier figure, maintenance is the important part of

asset management and asset management system

• However, its interaction with the other functions has not been clearly

determined in the above mentioned standards

• EN16646 ”Maintenance within Physical Asset Management” is not a

management system standard, but an informative one.

• It is a good starting point for the assessment of asset management

practices and

• For development the modes of operation.

• EN16646 gives support when establishing physical asset management

system for the organization

• EN 16646 focus on the position of the maintenance function within the

management of the organization and specifically within physical asset

management

18

Summary

19

Asset Management - standards

At the moment there five(5) well known asset management standards:

• BSI PAS 55: Technical specification

• ISO 55000: 2014 Asset Management – Overview, Principles and

Terminology


Requirements”


Guidelines for the Application of ISO 55001”

• EN 16646: 2014 ”Maintenance within Physical Asset Management”

20

Development of asset management

system standards

• Although, the PAS 55 is a good asset management system

standard and well-respected by the users, it has now been or

will be in many cases replaced by ISO 55000, 55001 and

55002 standards.

• The structure of ISO 55001 follows the structure of ISO meta-

standard which defines what kind of structure and content

every ISO Management System –standard shall have.

• ISO-standards are globally applied standards, but are not in

Europe as compulsory as European EN-standards.

21

Framework of concepts

22

Managing the Organisation

Asset Management

Asset management

system

Asset portfolio

Coordinated activity of an organization to realize value from assets

Set of interrelated or interacting elements to establish AM policy, AM

objectives and processes to achieve those

objectives

Assets that are within the scope of the asset management system

Asset portfolio

Asset system

Individual asset

(ISO 55000)

EN 16646 ‘Maintenance within physical

asset management’

Overview of physical asset management

Physical asset management system

Purpose of asset management system

Interaction between organizational context, physical asset management

and maintenance management

The influence of organizational context at the different levels of assets

Physical asset management processes

Physical asset management processes and life cycle stages

Life-cycle management, asset and maintenance management processes

Interrelationship between maintenance and other processes Performance

monitoring

General asset management system requirements

Specific requirements

Organization and people enablers: organizational competences

Structure and procedures

Competences23

Kari Komonen 2015

Holistic view of EN 16646

24

Asset portfolio

Asset system

Individual assets

Acquisition, Operation, Maintenance, Modernization, Disposal




Required competences

Performance monitoring and control

Requirements for physical assets:

Asset management policy, strategy and objectives

Physical asset management plans (incl. maintenance)

Organizational context (strategic physical asset management process)

25

TECHNOLOGYCOMPANY

CHARACTERISTICSMARKETS AND COMMUNITY

STRATEGIC ANALYSES


ASSET MANAGEMENT POLICY, STRATEGY AND OBJECTIVES

PHYSICAL ASSET MANAGEMENT PLANS

MAINTENANCE MANAGEMENT STRATEGY,

OBJECTIVES AND PLANS

Metrics for requirements

Metrics for Physical Asset Management

Metrics for Maintenance Management

Requirements for assets and asset management are the function of fourgroups of determinants:• technology in use• market• community and • characteristics of the organization

They further determine asset and maintenance management objectives, strategies and plans which should be monitored and controlled

The content of EN 16646: Strategic physical asset management process

26

TECHNOLOGYCOMPANY


STRATEGIC ANALYSES









The role of the maintenance function depends on the stage of the process and asset hierarchy (portfolio level, asset system level or asset level). The following extract covers the asset system level.

What is the role of the maintenance function in this planning process? See next slides, section 4 and EN 16646.

The role of maintenance at asset system levelA simplified presentation, for details, see EN 16646

27

Contribution of maintenance

No. Task or process of the asset system The role and tasks of the

maintenance function

1 Organization's business and asset strategy and physical asset strategy

Informative and consultative role

4 Key success factors for the asset system. Requirements and constrains for the asset system

Consultative role

6 Determination of asset solution for asset system, criticality analysis etc.

Active participation

7 Design of the asset system Active participation

9 Creation and maintenance of physical asset management system


10 Creation and revision of maintenance management system

Responsible for the task

11 Definition of maintenance strategy and maintenance plan Responsible for the task

13 Preparation of support activities Active participation or responsible

14 Performance evaluation, benchmarking and improvement Responsible for the task

16 Decision for disposal; economic and environmental management of disposal

Consultative role

Life-cycle processes and their interaction with

the maintenance process

28

Relationship between acquisition process

and maintenance process: an extract as an example

29

For example• The costs of the assets at each indenture level• The characteristics of the assets in terms of materials, technology, geometry, weight• Mechanical drawings• A functional analysis: the required functions and operating conditions • For more information, see the following slides and EN 16646

For example• Maintenance strategy • Availability of tools, infrastructures and qualified personnel• Requested operational reliability of the components of the assets• Requested levels of maintainability

General performance indicators

In addition to requirements for physical assets presented above, e.g. the

following risks could be avoided by using KPIs (Key Performance Indicators)

which support cooperation between the different functions. In EN 16646,

these KPIs are called general performance indicators:

• ‘silo’ behaviour of individual functional departments (sub-optimization of

activities of separate organizational functions);

• lack of holistic picture of success of physical asset management activities;

• wrong allocation of resources to various functions of an organization;

• wrong decisions regarding replacements and improvements;

• decisions based on investment cost (purchasing cost) instead of life cycle

cost or profit;

• incorrectly estimated length of asset's useful life in financial calculations;

• improper financial decision making criteria for investment decisions and

maintenance;

• uncertainty in decision making.

30


31

Asset portfolio

Asset system

Individual assets










In order to successfully manage physical assets and maintenance

within physical asset management the management of the

organization should master the content of the above system and

contributions from one sub-system to the others, the requirements of

separate organizational functions, interaction between them and

specific features of different asset levels.

Section 1

ISO 5500x standards

32

ISO 55001: Requirements

• This International Standard specifies requirements for an

asset management system within the context of the

organization. This International Standard can be applied to

all types of assets and by all types and sizes of

organizations.

• NOTE 1 This International Standard is intended to be used for

managing physical assets in particular, but it can also be applied

to other asset types.

• NOTE 2 This International Standard does not specify financial,

accounting or technical requirements for managing specific asset

types.

• NOTE 3 For the purposes of ISO 55000, ISO 55002 and this

International Standard, the term “asset management system” is

used to refer to a management system for asset management.

33

Some benefits of ISO 55000-55002 standards

1. improved financial performance

2. informed asset investment decisions

3. managed risk

4. improved services and outputs

5. demonstrated social responsibility

6. demonstrated compliance

7. enhanced reputation

8. improved organizational sustainability

9. improved efficiency and effectiveness

34

Basic terminology

35

Managing the Organisation

Asset Management

Asset management

system

Asset portfolio

Coordinated activity of an organization to realize value from assets

Set of interrelated or interacting elements to establish AM policy, AM

objectives and processes to achieve those

objectives

Assets that are within the scope of the asset management system

Asset portfolio

Asset system

Individual asset

asset

item, thing or entity that has

potential or actual value to an

organization

asset management plan (an outcome from

asset management system)

documented information that specifies the

activities, resources and timescales required for

an individual asset, or a grouping of assets, to

achieve the organization’s asset management

objectives

The Structure of Requirements

The structure of ISO 55001 (Asset management. Management system.

Requirements)

1. Organizational context

2. Leadership

3. Planning

4. Support

5. Operation

6. Performance evaluation

7. Improvement

36

Some important issues in ISO 55000-55002

standards

• The need for asset management system

• Organizational context: the purpose and characteristics of the

organization, business and community environment, economic

constraints and requirements from the authorities, needs and

expectations of stakeholders

• The three levels of asset management: portfolio level, asset system level and individual asset level

• Cross-organizational co-operation: avoiding silo-behaviour, the

role of top management, information sharing

• Information management

37

Section 2

EN 16646-Maintenance within Physical Asset Management

38

The scope of the standard

• This European Standard introduces physical asset management as a

framework for maintenance activities.

• It also introduces the relationship between organizational strategic plan and

maintenance management system and describes the interrelations between

maintenance process and all the other physical asset management

processes.

• It addresses the role and importance of maintenance within physical asset

management system during the whole life cycle of an item.

• This European Standard can be applied to production organizations of all

sizes. However, if specific standards exist for a particular application or field

of industry, those documents should also be considered.

• This European Standard consists of guidance and recommendations and is

not intended to be used for certification, regulatory, or contractual use.

39

Some definitions

physical asset

• item that has potential or actual value to an organization

– Note 1 to entry: Examples of physical assets are components, machines, plants,

construction works, buildings.

physical asset management

• coordinated activities of an organization to realize value from physical assets

– Note 1 to entry: Realization of value will normally involve a balancing of costs, risks,

opportunities and benefits.

– Note 2 to entry: In the life cycle context, physical asset management is the optimal life cycle

management of physical assets to sustainably achieve the stated business objectives.

life cycle of a physical asset

• period of value realization from a physical asset by an organization including needs

identification, creation or acquisition, utilization, maintenance, modernization and

disposal

– Note 1 to entry: Life cycle of an item may contain several life cycles of a physical asset. An

item can have several sequential owners during its life cycle.

life cycle of an item

• series of stages through which an item goes, from its conception to disposal

40

Life-cycle of an asset versus item

41

Life cycle of an item/_____________________________________________________________________________/

/ 1st life cycle of an asset / 2nd life cycle of an asset / 3rd life cycle of an /

Life-cycle stages or phases

1. needs and feasibility assessments for assets

2. concept definition

3. determination of asset solutions

4. design of assets

5. manufacturing or acquisition of assets

6. installation and commencing

7. utilization of assets

8. maintenance of assets

9. modernization

10. decommissioning, retirement, and/or disposal of assets

42

Some important issues in EN 16646 standard

• Organizational context: the purpose and characteristics of the

organization, business and community environment, economic

constraints and requirements from the authorities, needs and

expectations of stakeholders

• Determination of requirements for physical assets

• The three levels of asset management:

– portfolio level, asset system level and individual asset level

• Life-cycle processes

• Cross-organizational co-operation:

– avoiding silo-behaviour, the role of top management, information

sharing

• Performance management

• Competences

43

Section 3

Organizational context

44

Organizational context

• In this standard organizational context has been examined from

the requirements for physical assets point of view.

• Organizational strategic plan and influencing factors originated

from the characteristics of the organization, market, surrounding

community and used technology determine requirements for

physical assets and asset management.

• These requirements determine further physical asset

management policies, strategies, objectives and plans.

• And further, these policies, strategies, objectives and plans

determine maintenance management strategies, objectives and

plans.

• In order to manage effectively these issues, performance

management, performance indicators are needed.

45

Strategic physical asset management process

46

TECHNOLOGYCOMPANY


STRATEGIC ANALYSES









Carefully determined requirementsfor physical assets guarantee appropriate assets, asset management strategies and plans, which further • create higher profitability, • better competitiveness, • sustainability and • in the case of performance monitoring

timely improvements.

Company: Organizational influencing factors

• Corporate strategic plan

• Capital intensity

• Core business

• Competences

• Financial statement

• Competitive position

• Organizational structure

• Location / locations

• Product strategy

• Stakeholders

• Operating rate

47

TECHNOLOGYCOMPANY


STRATEGIC ANALYSES









Markets: Influencing factors

• Demand

• Competition

• Life-cycle phase (product)

• Logistics

• Regulations

48

TECHNOLOGYCOMPANY


STRATEGIC ANALYSES









Community: Influencing factors

• Infrastructure

• Regulations

• Political, economic, social,

cultural factors

• Stakeholders

49

TECHNOLOGYCOMPANY


STRATEGIC ANALYSES









Technology: Influencing factors

• Technology to be used

• Structure of the production system

• Flexibility of the production system

• Inherent dependability characteristics

• Economic lifecycle phase (equipment)

• Technical lifecycle phase (equipment)

• Knowhow-gap

50

TECHNOLOGYCOMPANY


STRATEGIC ANALYSES









Requirements for physical assets

Examples:

• Capacity

• Capacity flexibility

• Competences

• Capability

• Reliability, durability

• Environment and safety

• Product quality requirements

• Efficiency

• Availability

• Future market value of assets

• Integrity

• Sustainability

51

TECHNOLOGYCOMPANY


STRATEGIC ANALYSES









Section 4

Physical Asset Management processes

52

The role and tasks of the maintenance

function within asset management processes

• Organizational strategic plans influence greatly on

maintenance activities.

• Maintenance activities has also a great impact on

organizational strategic plans.

• Therefore, interaction between organizational plans and

maintenance function is bidirectional.

• The role of maintenance has very often been neglected in

organizational planning processes.

• EN 16646 defines this interaction at every step of the asset

management process.

53

Physical asset management processes

• EN 16646 defines physical asset management processes for

the three levels of assets:

– portfolio level,

– asset system level and

– individual assets.

• The role and tasks of the maintenance function have been

determined at the every stage of these processes.

• Finally, the life cycle stage of each step has been indicated.

54

The optional roles of the maintenance

function within asset management processes

In this standard four categories of roles have been

used

• Informative

• Consultative

• Active

• Responsible

55

Portfolio level asset management processA shortened version, for more information see EN 16646

56

Process stage Role of maintenance

1. Organization's business strategy Informative & consultative

2. Key success factors Informative

3. Requirements for physical assets Informative

4. Asset policy and strategy Consultative

5. Allocation of the task roles to the asset systems Consultative

6. Determination of physical asset solution Consultative

7. Design of the asset systems within portfolio Consultative

8. Creation of physical asset management system Active participation

9. Creation of maintenance management system Active participation

10. Planning of maintenance support resources Active participation

11. Maintenance planning at the portfolio level Responsible for task

12. Performance evaluation and improvement Responsible for task

13. Disposal and acquisition of asset systems Consultative

The role of maintenance at asset system levelA simplified presentation, for details, see EN 16646

57

Contribution of maintenance

No. Task or process of the asset system The role and tasks of the

maintenance function

1 Organization's business and asset strategy and physical asset strategy

Informative and consultative role

4 Key success factors for the asset system. Requirements and constrains for the asset system

Consultative role

6 Determination of asset solution for asset system, criticality analysis etc.


7 Design of the asset system Active participation

9 Creation and maintenance of physical asset management system


10 Creation and revision of maintenance management system

Responsible for the task

11 Definition of maintenance strategy and maintenance plan Responsible for the task

13 Preparation of support activities Active participation or responsible

14 Performance evaluation, benchmarking and improvement Responsible for the task

16 Decision for disposal; economic and environmental management of disposal

Consultative role

Individual asset level process A shortened version, for more information see EN 16646

58

Process stage Role of maintenance

1. Criticality analysis and determination of useful life Active participation

2. Required reliability, maintainability, and testability Active participation

3. Load analysis Active participation

4. Concept definition and life cycle cost analysis Active when needed

5. Design of the asset in question if needed Active when needed

6. Manufacturing, installation and commencing Active when needed

7. Management of documentation Active or responsible

8. Definition of maintenance environment, strategy and tasks Responsible

9. Maintenance support, training, spare parts, tools, information… Responsible

10.Maintenance task preparation and execution Responsible

11.Performance evaluation for maintenance improvement Responsible

12.Maintenance improvements / modifications Active or responsible

13.Replacement / disposal Active or responsible

14.Maintenance activities related to disposal Responsible

Section 5

Life-cycle processes

59

Physical asset management processes and

life cycle stages

• Physical asset management processes produce sustainable value to

organizations following the requirements of the organization.

• These processes are managed according to physical asset management

policy, strategy and plans.

• They need support to be operated. Therefore, much information is

exchanged between the different parts of the physical asset management

system.

• The purpose of this clause is to list the interrelationships between the

maintenance process and the other parts of the system and to explain why

they are important and how they are used.

• Especially, various life-cycle processes of organizations are depicted.

• Additionally, necessary two-way contributions between life-cycle processes

have been determined

60

Life-cycle stages

Core life-cycle processes are:

• Acquire appropriate physical assets, if they exist in the market,

or create the physical assets if they do not exist in the market at

acceptable economic conditions.

• Operate the assets to optimize the value created for the

organizations.

• Maintain the assets to optimize the value created for the

organizations.

• Modernize (upgrade) the assets to obtain the greater value over

the life cycle of the global asset.

– NOTE. Modernization process contains all the same phases of life cycle as

the whole asset system.

• Decommissioning and/or disposal of the assets when the end of

useful life is reached.

61

Life-cycle processes and their interaction with

the maintenance process

62

Contributions between life-cycle processes

• Presented contributions are short lists.

• They mainly list the key words.

• In order to fully understand the content of the contributions

there is a need to get acquainted with the standard itself.

• In this presentation and in the standard the term ‘process’ is

used instead of department or function in order to emphasize

activities instead of organizational units.

63

Some definitions

Operating conditions

• physical loads and environmental conditions as experienced by

the asset during the entire life cycle

– Note 1 to entry: Operating conditions can vary during the asset's life

cycle.

Operating constraints

• characteristics of the asset, which set limits for the use of the

asset and may determine requirements for maintenance activities

– Note 1 to entry: These characteristics are the results of design and

construction of the assets and are influenced by the operational mode

and operation conditions.

Operational mode

• a way physical assets are operated and utilized during the entire

life cycle determined by the number of units of use (hours,

starts/stops, transients)

– Note 1 to entry: Operational mode determines the frequency, load,

continuity and performance rate of utilization.

64

Relationship between acquisition process and

maintenance process: An extract as an example, for more information, see EN 16646

65

For example

For example• Maintenance strategy, availability of tools, qualified personnel etc.• Requested operational reliability• Requested levels of maintainability• Maintenance costs, ability to standardize, modularity.

• List of assets, • Costs of assets, • Characteristics of assets, documentation, • Functional analysis, specified operating profiles, • Risk analysis, • Expected reliability, expected maintainability

66

Relationship between operation and maintenance

processes An extract as an example, for more information, see EN 16646

• Expected operating profiles for plants, • Environmental conditions, • Operator responsibilities (monitoring and maintenance), • Degraded operating profiles, emergency procedures

For example

• Operating constraints of items,• Times to restoration, • Preventive maintenance schedules• Operators’ monitoring tasks• Safety procedure for maintenance execution

For example

• Preventive and corrective maintenance costs• Number of degradations and failures• Unavailability due to maintenance• Assessment of degradation states and remaining useful life• List of obsolescent components• Plus the same as for ‘acquire assets’

Relationship between ‘modernize assets’ and

maintenance processesAn extract as an example, for more information, see EN 16646

67

• Dates of modernization• Modernization procedure• New requirements • Plus the same as for ‘acquire assets’

For example

For example

Relationship between disposal and maintenance

processesAn extract as an example, for more information, see EN 16646

68

• Disposal schedule.

• Disposal procedure

• Spare parts not to be disposed

For example

For example

• Expected maintenance costs before the disposal • Information having impact on health and safety during disposal• Information about degradation and failures• Assessment remaining useful life• Information concerning reuse of components

Relationship between asset management support

and maintenance processAn extract as an example, for more information, see EN 16646

69

• Qualified staff according requirements,

• List of subcontractors,

• Provision of training, communication support,

• Support for documentation, information systems,

• Maintenance facilities

For example

For example

• Qualification profiles of personnel,• Specification of maintenance to be outsourced• Skills and knowledge necessary for maintenance activities• Information from the maintenance process• Requirements for information system

Relationship between the process ‘manage

assets’ and maintenance processAn extract as an example, for more information, see EN 16646

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• Asset management and maintenance organization structure,

• Objectives, policy, strategy and physical asset management plans,

• Methods, procedures or control systems for different life cycle stages

For example

For example

• Dependability characteristics of assets,

• Life cycle cost characteristics of assets,

• Impact of maintenance strategies on assets

• Impact of maintenance strategies and activities on asset

management policy, strategy and plans.

Section 6

Performance monitoring

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General performance indicators

The following risks could be avoided by using KPIs (Key Performance

Indicators) which support cooperation between the different functions. In EN

16646, these KPIs are called general performance indicators:

• ‘silo’ behaviour of individual functional departments (sub-optimization of

activities of separate organizational functions);

• lack of holistic picture of success of physical asset management activities;

• wrong allocation of resources to various functions of an organization;

• wrong decisions regarding replacements and improvements;

• decisions based on investment cost (purchasing cost) instead of life cycle

cost or profit;

• incorrectly estimated length of asset's useful life in financial calculations;

• improper financial decision making criteria for investment decisions and

maintenance;

• uncertainty in decision making.

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Examples of general KPIsFor more examples, see EN 16646

• Return on physical assets.

• External criticality of production assets (e.g. from customer satisfaction

or competition point of view).

• Internal criticality of equipment (e.g. bottlenecks).

• OEE (overall equipment effectiveness).

• Total dependability costs of ownership (unavailability costs +

replacement costs (technical depreciation) + maintenance costs + other

losses during the life cycle of equipment such as energy costs).

• TCO or life cycle costs of production equipment.

Of course, these key performance indicators are also used for performance

management (monitoring and control). These indicators support the

organization when it aims to develop its economic performance in a

sustainable way.

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Performance monitoring: specific indicators

• As it was stated earlier in this material, the management of the

organization shall determine performance indicators

– for the defined requirements for the assets

– for the physical asset management strategies, objectives and

– for physical asset management plans

– for the maintenance management strategies, objectives and plans

• The management shall also monitor these performance indicators.

• And carry out corrective, preventive and improvement actions whenever

needed.

• It is important to notice that certain performance indicators can be used

for several purposes and at the different levels of the organization.

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TECHNOLOGYCOMPANY


STRATEGIC ANALYSES









Specific indicators are needed to monitor and control the requirements for physical assets and implementation of strategies objectives and plans

The use of organization specific

performance indicators

• In order to plan and implement physical asset management activities

according to the identified requirements for physical assets the organization

should define KPIs which are needed to manage and improve the

performance of asset portfolio, asset systems or individual assets.

• The exact form of KPIs (equation) for each requirement and effective

combination and trade-offs of various indicators depend on the industrial

sector, used technology, on the life cycle phase of the production equipment

and even the life cycle of the business sector in question.

• After the requirements for physical asset have been determined the next step

is to define appropriate alternative KPIs for each requirement (listed in

Clause 3).

• The same applies to the physical asset management objectives and plans,

and maintenance objectives and plans .

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Section 7

Physical asset management

competences

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Competences

• Based on the content of the standard, EN 16646 gives general

statement on the specific competences required by effective

physical asset management

• These competences have been defined for

– (1) asset portfolio and asset system levels and

– (2) individual asset level

• In this presentation only the category (1) is demonstrated.

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Required competences at portfolio and asset

system levels

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Asset portfolio

Asset system

Individual assets










In order to successfully manage physical assets and maintenance within

physical asset management the management of the organization should

master the content of the above system and contributions from one sub-

system to the others, the requirements of separate organizational functions,

interaction between them and specific features of different asset levels.

Portfolio level and asset system level

competences: an exampleFor more information see EN 16646

Portfolio and asset system level top management and functional management and

asset management teams should possess competence

• to understand the requirements set for the physical assets.

• to transform requirements into asset solutions.

• to determine KPIs to support the implementation of these requirements.

• to plan, build up and implement physical asset management and maintenance

management system for asset portfolio and asset system level.

• to understand the impact of different asset solutions on the business strategies.

• to use internal cross-functional cooperation and information sharing to govern

the divergent objectives of various functions.

• to understand asset system level impacts on the portfolio level physical asset

management processes and the impact of individual asset level impacts on the

asset system level.

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Thank you!

10.2.2016 Maintenance within physical asset management / Kari Komonen81

maintenance within physical asset management€¦ · terminologia standardi sekä en 15341...

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