weber w.seven elements of an effective system for...

SMARTER approaches in Asset Management www.saama.org.za

Seven elements of an Effective System for Asset Management

Presenting: W Weber

SMARTER approaches in Asset Management

• Systems and Defining Systems

• The Manager’s Predicament

• Seven elements of a system

• How it fits with ISO 55000

• Practicle examples and application

Agenda

"Asking the right

questions takes

as much skill as

giving the right

answers." -

Robert Half


Systems and Defining Systems


“Asset management, broadly defined,

refers to any system that monitors and

maintains things of value to an entity or

group. It may apply to both tangible assets

such as buildings and to intangible assets

such as human capital, intellectual property,

and goodwill and financial assets”.

(Wikipedia, 2016)

“A system is a regularly interacting or

interdependent group of items forming an

integrated whole. Every system is delineated

by its spatial and temporal boundaries,

surrounded and influenced by its

environment, described by its structure and

purpose and expressed in its functioning.”

(Wikipedia, 2018)

System Definition – What does Wiki say?


What the world has to say

A management system is the framework of

policies, processes and procedures used by

an organization to ensure that it can fulfill all

the tasks required to achieve its objectives.

These objectives will be a mix covering many

aspects of the organization's operations

(including financial success, safe operation,

product quality, client relationships, legislative

and regulatory conformance, worker

management, etc.) (Wikipedia, 2018)

What the manager think

Management Systems Definintion

Source: https://en.wikipedia.org/wiki/Management_system

The way I get things done


The Manager’s Predicament


Hierarchy and the Management Function

Ensure safe execution of quality work to agreed standards

Ensuring functional systems to enable work to agreed standards

Enabling people to deliver business objectives and standards

Delivering business objectives through integrated functions

Executive Management

Executive Management

Senior Management

Senior Management

2nd Line Management

2nd Line Management

1st Line Supervisor

1st Line Supervisor

Managers are Responsible for …

Overtime

Budget and cost review

MOC

Ta s k r i s k a s s e s s m e n t s

BBS

Housekeeping

Permit to work

Cost Control

Budget

I n t e g r a t e d M a n a g e m e n t S ys t e m

Integrated Risk Register

SHE Reps

Legal Appointments

Budget forecast

Team Performance review

KPI Review

Work Order age analysis

Pump MTBF

Work management review

Non Conformance Review

RELIABILITY REVIEWRCA

Production plan

Asset improvement plan

Contingency System

SMOP SD Preparation

Shutdown Preparation

Standby

Training Matrix

PDP and Career path

Performance discussions

Leave roster and IR02

Hired labor

Temporary MOC

Leak seal register

Concession review

Statutory inspections

QCP

PSV/TSV RegisterEquipment Registers

Equipment Integrity

10 year Renewal plan

OWAP

Equipment Maintenance StrategiesEquipment RBI

Project FEL

Projects

Stores and inventory

Production Shift roster

Production Performance review

Substation integrity

Alarm management


Seven Elements of a System


Elements of a System | Purpose

1 | Purpose

Each system has to fulfill a purpose. This purpose must be a

short statement that describe the reason for the system and

answer why the system exists and what are the objectives we

want to achieve. (Why and What?)


Elements of a System | Business Process

2 | Business Process

A business process is defined as the steps or set of activities, that will

fulfill the purpose. It also provides detail of the resources involved and

what must be done, it defines the quality standard(s) for each step

and provides guidance where decisions has to be made. The

business process helps to define who must do what in the system.

(What and How?)


Elements of a System | Roles and Responsibilities

3 | Roles and Responsibilities

Roles and responsibilities are defined in the business process, but

normally its defined in a role category, e.g. foreman or 2nd line

manager. This important part of the system clearly defines the person.

You should be able to answer who is the persons responsible to

perform the activities as defined in the business process. You must be

able to complete this part of the system with a name, company

number and a signature from the person that he/she understand their

role. (Who?)


Elements of a System | Rhythm

4 | Rhythm

A system only function in a well defined frequency. This frequency

helps all the role players to perform their duties as per business

process and this helps to coordinate all the activities of the system.

The meeting frequencies where work is done or feedback is provided

is defined to the extend that all the role players understand what is

expected at what time. (When)


Elements of a System | Reporting

5 | Reporting

Reporting helps all the role players to get line of sight of the

information generated from the system. This includes reports,

memos, figures, and any other form of information that is required to

plan, organize, lead or control the system. The reporting format is well

defined as the right information is required for the specific

meeting(rhythm) or communication media. What you share is defined

in this part of the system and it helps management to make the right

decisions and to monitor the health of the system.


Elements of a System | Training and Competency

6 | Training and Competency

Systems only function well in environments where all the role players

are trained and declared competent to perform the actions described

in the business process of the system. All the role players must be

trained in all steps of the system else the personnel will not be able to

sustain the system in future. Competency is only defined for that

system and if any of the elements change then training to all parties

has to be completed again. Training and competence will ensure that

a system is sustained in the future.


Elements of a System | Audit

7 | Audit

A system is only completed if there is an audit protocol to check the

system health against the standard set by the business process and

to verify that each part of the systems is well maintained. These

audits can be performed by internal and/or external parties and is an

important aspect. These also occur in a specific rhythm and provides

an audit report that management can use to evaluate if and where the

system can be improved. Over inspection by management also forms

part of this important element.


Elements of a System

1. Purpose 2. Business process 3. Roles and Responsibilities

4. Rhythm

5. Reporting6. Training and competency

7. Audit


How it fits with ISO 55000


ISO management systems structure

International Standards Organisation (ISO) - Keeping it simple

• Many ISO management system standards have the same structure and contain many of the

same terms and definitions. This is particularly useful for those organizations that choose to

operate a single (sometimes called “integrated”) management system that can meet the

requirements of two or more management system standards simultaneously.

List of Main ISO Managament systems

Source: https://www.iso.org/management-system-standards.html

• Quality

• Safety and security

• General management (Including ISO 55000)

• Health and medical

• Environmental and Energy

• Industry

• Services

• Information technology


ISO 55001: Asset Management

Definition 3.4.2 Management System

“Set of interrelated or interacting elements of an organisation (3.1.13) to establish policies

(3.1.18) and objectives (3.1.12) and processes (3.1.19) to achieve those objectives

Note 1 to entry: A management system can address a single discipline or several disciplines.

Note 2 to entry: The system elements include the organisation’s structure, roles and

responsibilities, planning, operation, etc.

Note 3 to entry: The scope of a management system may include the whole organisation, specific

and identified sections of the organisation, or one or more functions across a group of

organisations.”

Source: https://www.iso.org/obp/ui/#iso:std:iso:55000:ed-1:v2:en

ISO 55001: Asset Management - Contents

4. Context of the organization

4.1 Understanding and the organization and its context

4.2 Understand the needs and expectations of the stakeholders

4.3 Determining the scope of the asset management system

4.4 Asset management system

5. Leadership

5.1 Leadership commitment

5.2 Policy

5.3 Organizational roles, responsibilities and authorities

6. Planning

6.1 Actions to address risk and opportunities for the asset

management system

6.2 Asset management objectives and planning to achieve them

7. Support

7.1 Resource

7.2 Competence

7.3 Awareness

7.4 Communication

7.5 Information requirements

7.6 Documented information

8. Operation

8.1 Operational planning and control

8.2 Management of change

8.3 Outsourcing

9. Performance evaluation

9.1 Monitoring. Measurement, analysis and evaluation

9.2 Internal audit

9.3 Management review

10. Improvement

10.1 Nonconformity and corrective action

10.2 Preventative action

10.3 Continual improvement

ISO 55001: Asset Management - Contents

4. Context of the organization

4.1 Understanding and the organization and its context

4.2 Understand the needs and expectations of the

stakeholders

4.3 Determining the scope of the asset management system

4.4 Asset management system

5. Leadership

5.1 Leadership commitment

5.2 Policy

5.3 Organizational roles, responsibilities and authorities

6. Planning

6.1 Actions to address risk and opportunities for the asset

management system

6.2 Asset management objectives and planning to achieve

them

7. Support

7.1 Resource

7.2 Competence

7.3 Awareness

7.4 Communication

7.5 Information requirements

7.6 Documented information

8. Operation

8.1 Operational planning and control

8.2 Management of change

8.3 Outsourcing

9. Performance evaluation

9.1 Monitoring. Measurement, analysis and

evaluation

9.2 Internal audit

9.3 Management review

10. Improvement

10.1 Nonconformity and corrective action

10.2 Preventative action

10.3 Continual improvement

1. Purpose

2. Business

process

3. Roles and

Responsibilities

6. Training and

competency

4. Rhythm

5. Reporting

7. Audit


Practical Examples and Application


Practical Application of 7 Elements of a System

• The statements made leads to the identification of areas of improvement of the system

• The leader can help to improve the system through selective questioning and clarify the

expectations and area of improvement

• Each system can improve, its just a matter of identify the weakest link and make the

incremental or major change

1. Purpose 2. Business process 3. Roles and Responsibilities 4. Rhythm 5. Reporting 6. Training and competency 7. Audit


Statement

“I do not see the need to

perform a RCA.”

“The foremen did not know

that Mr Botha worked 105

hrs overtime for the month. If

he knew he would not have

allowed more overtime.”

Question

“Do you understand the Purpose and the objective of the RCA

system? Well is it …?”

“Do you have a weekly review of the overtime worked?”

“Do you the right information in your meeting?”

“What do you need to change to improve the visibility of

overtime worked in your weekly meeting?”





Statement

“Our pump MTBF has

improved since we have

implemented the new QCP

system but we are still getting

incompleted QCP

documents.”

Question

“Do you get the weekly reports?”

“Well have you trained and declared the artisans competent to

complete the new QCP documentation?

“Good, can you include the training and competancy status of

the artisans in you monhtly report to me?”



Practical application of 7 elements of a system

Statement

“ No, its not my job to prepare

the report for the meeting …”

“I think we are the best in

work management, so I do not

understand the audit finding?”

Question

“Did you know that the business process states that … so, are

we clear with your responsibilities wrt preparation of the

report?”

“When was the last time you have performed and internal audit

of the foremen?”

“Okay, what are we going to change to improve our ability to

find these system deficiencies before the external audit?”



• Systems are the way we get things done.

• Systems can continuously improve if you know

what questions to ask.

• Managing all the systems can be tough, but slow

and steady wins the race.

• “Teach a Man To Fish, then You Feed Him for a

Lifetime” – Chinese proverb.

Closing

"Asking the right

questions takes

as much skill as

giving the right

answers." -

Robert Half



Thank you

W. Weber

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