Putting the total jigsaw puzzle together:

the PAS 55 standard for the integrated, optimized management of assets

Reliabilityweb.com Symposium

Alan Laird/John Woodhouse TWPL

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Asset Management?
Financial service managers: Portfolio management of cash, shares, bonds & futures Main board directors: Mergers/acquisitions of whole companies and their assets Maintenance staff: A smarter name for maintenance that adds credibility Software vendors: Asset information databases and work management aids IT managers: Labelling the PCs & peripherals and keeping track of them Complex System, Plant & Infrastructure managers: Optimising the whole life mix of asset exploitation & asset care
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Asset Management: joining up the silos

Asset Management philosophy & framework

Where to & Why

Maintenance

Investment

Operations

The Who & How

Common enablers
(asset register, life cycle costing, risk mgmt, work mgmt systems)
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Temporary enthusiasms

Effort & results

Volume commitment Building Confidence Initial results Experiments Initial interest

Loss of urgency

Visible cost of continued effort Displacement by other priorities Residual, hidden loyalties

Typically 9-24 months

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History N.Sea oil industry

N.Sea oil started 1975 Political aim for self-sufficiency by 1980 Typical exploration & prodn costs $15/bbl Market value average $35/bbl Price crash 1986 (to $9/bbl) Piper Alpha disaster (167 killed) Lord Cullen report on self-regulation Diminishing reserves, marginal fields Globalisation of marketplace
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Iterative improvements
Effort & results

Risk-based alliance contracting

Life Cycle Costing & Optimisation

Maintenance Strategy Review (RCM, TPM, RBI)

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Example results
Shell (2 example oil platforms & export pipelines): Production uptime raised by 17% over 4 years Simultaneous Opex savings of over 141Million (50%) Safety and Integrity indices also all improved Winners of national training award for empowerment BP: typical unit production costs of $15/barrel in late 80s, now producing at around $2/barrel in harsher environment

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Current status
UK & Australia/NZ parallel evolution & leading the world N.Sea adopted totally, with spectacular results UK & Australian Utilities redesigning companies towards AM structures, Transport & public sector exploring implications Institute of Asset Mgmt 9 yrs old; significant corporate backing, alliance with IEE, IIMM publication, PAS-55 standard with BSI MSc programme: 8th year & now being expanded internationally & multi-industry UK industry regulators adopting PAS 55 requirements
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PAS55 Specification for optimised Asset Management

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PAS 55
Specification for the optimized management of physical infrastructure assets Drafting Group
J.Woodhouse, IAM, Chairman D.Ford, FaberMaunsell, Secretary & Contracts Stewart Cormie, BSI, Project Manager Peter Beveridge, BSI, Sub-editor M.Cottam, Lloyds Register, Technical M.Mustafa, Lloyds Register, Drafting

Review Panel
Anglian Water Group Department for Transport Health & Safety Executive FaberMaunsell Halliburton Brown & Root Institute of Asset Management Institute of Public Finance & Accountancy Interbrew LE Group (London Power Networks) Lloyds Register LogicaCMG London Underground Ltd Ministry of Defence (DLO) UK National Air Traffic Services National Grid Transco Network Rail Northern Electric (Yorkshire Electricity) Northumbrian Water OFGEM OFWAT Severn Trent Water Woodhouse Partnership
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What was involved

Idea first floated Feb 2002 Proposal submitted to BSI in July; work started Nov 2002 14 other standards to review & interlink/crossreference 10 iterations of consultation and refinement, including 2 formal Review Panel cycles & 2 public consultations. 80 - 250 suggestions (60 pages) of input to be incorporated at each stage!
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Publicly Available Specification

Different levels of specification & standards

ISO Time, consensus & development EN CWA BS BSI PAS Consortia Codes of Practice Company Procedures Customisation

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What has resulted

Optimised management of physical infrastructure assets Part 1 (PAS 55-1) The Specification (21 requirements) Part 2 (PAS 55-2) Guidelines for application of PAS 55-1

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Key principles embodied

Inclusive Whole life Optimized Risk-based Data-supported Continuous improvement Pragmatic
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PAS 55 definition of AM
The systematic and coordinated activities and practices through which an organization optimally manages its physical assets, and their associated performance, risks and expenditures over their lifecycle for the purpose of achieving its organizational strategic plan OR, more simply, "the optimum way of managing assets to achieve a desired and sustainable outcome".

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Asset Management processes

Capital Investment, Design & Projects

Materials Operating & Maintenance Strategies

CHANGE Mgmt
$
$

RESOURCE ADMIN

+ PEOPLE & DATA lubricants

Problem/Oppty INVESTIGATION

EVALUATION of Solutions

Resource PLANNING & Work DEFINITION

Labour

CONTINUOUS IMPROVEMENT cycle

Inspection & CBM

Work programme SCHEDULING

WORK ADMIN
Data Collection

Problem/Oppty IDENTIFICATION

Preventive, Detective & Corrective WORK External reporting

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Conflicting Objectives

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Cost/risk/performance optimisation

Optimum combination

Minimum maintenance cost Minimum Risk

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Asset-centred performance & cost accountability

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Levels of Asset Mgmt

Group/ Corporate Mgmt Portfolio/network AM

Business unit/system/region AM

Equipment AM

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Tension between central control & individual asset needs

Asset systems individuality
performance, condition, criticalities & needs

Design CONTROL Convenience, Consistency, Coordination, Compliance. Operation Inspection Maintenance

Spares, purchasing etc.

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PAS 55: Optimal management of assets to delivery corporate goals

Legal and stakeholder requirements and expectations
(customers, shareholders, regulators, employees, suppliers, society)

Other requirements & systems

Asset Management System

Business plans

Continuous improvement

Optimised AM strategy, objectives, plans & performance targets

Asset systems or business units Functions, asset type specialists, processes, procedures & standards

Performance & condition monitoring

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Who needs to know what, and why

Work Responsibility Competitive edge features Operators & Maintainers
Attention to detail, teamwork, continuous improvement Strategy methods & reliability concepts understanding

HOW

Engineers & Technical

WHAT, WHEN

Specialists Business Managers

WHY
New hybrid: Asset Manager

Clear directional vision, visible & sustained commitment/support

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IAM Competencies Project

Asset Management Competency Requirements Framework
Guidebook published on 20th June 2006 Mastery Level Professional Level Foundation Level
Able to prepare a business case that clearly presents the cost, benefits and risks of proposed and alternative Ablesolutions, including whole lifethat clearlyapresents appropriate to audience. Ensures that asset alternative to prepare a business case impact in manner the cost, benefits and risks of proposed and selection Able todecisionsaare based case impact in a manner appropriate theaudience. Ensures drivers. Able to prioritise and prepare business on whole clearly presents the cost, benefits and risks of proposed and alternative solutions, including whole life that life optimal combination of to various competing that asset selection solutions, including whole life impact optimal combination of the various competing drivers. Able to prioritise and decisionsinvestment projects by theira manner appropriate to audience. Ensures that asset selection rank are based on whole life in total business impact (criticality). decisions are based on whole life optimalbusiness impactthe various competing drivers. Able to prioritise and rank investment projects by their total combination of (criticality). rank investment projects by their total business impact (criticality).

7 areas: 44 topics
Business needs analysis incl R&D, demand forecasting Life Cycle Costing tools & evaluation Design/solution optioneering Business Case preparation, evaluation & investment decision-making Chosen assets: whole life planning & performance criteria Purchasing Major projects management & programme coordination Commissioning, training and handover

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Some of the challenges ...

Projects Getting Life Cycle & risk consideration into all projects Operations & Maintenance Reviewing strategies systematically while fire-fighting Contractors & Suppliers Performance measurement, motivation and rewarding HR culture change Natural teams & multidisciplinary approach Empowerment & education Data & IT Aligning data collection to subsequent usage

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Top-down & Bottom-up

AM directional clarity
Direction, criticality & weighted objectives

Culture, Attitudes, Motivation, Leadership

Organisation Design, Training, Communications

AM delivery tools
A) What is worth doing, when (RCM, RCA, TPM, APT, CI etc.) B) How best to deliver it (EAM, CMMS, CPM, MRP, CRM etc.)
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Example results from Interactive Assessment

AM processes section
Supply chain processes

Inn

n ce o

ce Aw

ss ne are

Un

ta ers d

g din n

e e nc te nc e lle mp ce Co Ex

Maintenance processes

Projects & Investment

Life Cycle Costing Projects & resource prioritisation Major project delivery/completions Minor projects evaluation & delivery Mtce/Ops feedback into projects Risk evaluation & management

Now

In 1 year

In 3 years 3-5 year s

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Getting the best from the current best practices

RCM & RBI
Function + failure modes + consequences + logic rules = maintenance strategies

Quality Management
Customer focus + teamwork + data analysis = improvement opportunities

IMPLEMENTATION SKILLS
Customising + culture impact + home ownership = sustained success

RCA & C/RO

Root Cause Analysis + lost opportunity costs + risk assessment = business impact

TPM & OD
Teamwork + OEE alignment + attention to detail + human issues = motivation & communication

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Resources, priorities/timings & dependencies into roadmap: realistic & deliverable!

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Every organisation has unique assets, so every roadmap is different but map-reading skills, the rules of the road & safe driving behaviours are generic, and need all drivers to cooperate!

Thank you
John Woodhouse
The Woodhouse Partnership Ltd www.twpl.com
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