By Eng. Jimmy Collins Omona. M.Sc. Hydraulic Engineering Moscow University Russia

Transcription

1 By Eng. Jimmy Collins Omona. M.Sc. Hydraulic Engineering Moscow University Russia

2 1. Tangibles that are used in the Operation of Utility or a production plant (Generation, Transmission, Distribution) OR 2. Assets are Buildings, tools, piece of equipment, pipes or machinery used in the operation of a Utility or production plant. Assets also include people such as the operators What are Assets (Physical)

3 ISO Definition/Presentation of Assets

4 What Is Asset Management?

5 What Is Asset Management? Is a systematic process for; identifying, cataloging, maintaining, operating, upgrading replacing the physical assets of the business on a cost-effective basis.

6 Objectives of Asset Management An asset management program is a plan of action undertaken by anorganization to ensure that its infrastructure and other allied assets are employed to deliver a desired standard of service. Purpose The main purpose of an asset management program is to clarify how a given standard of service will be provided using designated assets in a manner that is both optimaland justifiable.(optimal = superior service at minimal overall cost: justifiable= full presentation of all the costs and benefits for scrutiny so as to gauge the activity's effectiveness and efficiency. Provision of accurate information on Utility, Company/Establishment s assets for now and into the future to enable. Investment opportunities for greater wealth. Strategic Plan Cultural Plan Financial Plan Social Plan

7 Ensures that a system gets the most value from each of its assets and has the financial resources to rehabilitate and replace them when necessary. Developing plan to reduce costs while increasing efficiency and the reliability of a system s assets. Successful asset management depends on knowledge of a system s assets and regular communication with management and customers about the system s future needs. Why Manage Assets? make plant and equipment run consistently at highest availability produce at full capacity with 100% first-passquality make the most operating profit and to be sure you ll get it reduce production costs and wastes get utmost throughput from existing plant make higher productivity inevitable all without spending new capital improve your plant asset management Controlling the inherent variability in both business and operating processes to within designated limits, Managing risk by reducing the likelihood of adverse incidents, along with minimizing consequences Using failure preventing quality standards throughout your plant and equipment lifetime, including capital equipment acquisition and installation, Stopping human error by ensuring the accuracy and precision of human activity and intervention, Minimizing life cycle costs with proactive spreadsheet modeling of what robs your operating profit.

8 A good starting point for any size system is to ask the five core questions framework : 1.What Is The Current State Of The Utility s Assets? 2.What Is The Utility s Required Sustained Level Of Service? 3.Which Assets Are Critical To Sustained Performance? 4.What Are The Utility s Best Minimum Life-Cycle-Cost,CIP( Capital Improvement Plan) and O&M Strategies? 5.What Is The Utility s Best Long-term Financing Strategy? The five Questions above all relate to one another as shown in the Flow Chart below.

9 RELATING THE FIVE CORE QUESTIONS OF ASSET MANAGEMENT FRAMEWORK

10 1 What is the Current State of the Utility s Assets? Under this You Look at: What does the Utility own? Where is it What is its Condition? What is its useful Life? What is its value This means that Categorizing your assets is a great first step This helps you to identify which areas of the system might need the most attention. It helps you focus your efforts to get the biggest impact for your money. Don t forget the operator is your most valuable asset!

11 2 What do the regulators (ERA, DWRD,NEMA) require? What LOS do the Utility s customers demand? What are the physical capabilities of the Utility s assets? What are the Utility s performance goals In determining The Utility s Required Sustained Level of Service we need to establish the following: Find out what is expected of the utility by the regulators and how to provide/meet the requirement What level of service do the utility s stakeholders and customers demand or expect.( what is the best way to meet the needs of the customers, what is most important to them?) What are the physical capabilities of the utility s Assets or what can the utility do in its current capacity. Is the utility doing all it can do? What are the utility s performance goals, What services is the utility currently providing, and is there room for improvement?

12 3 How can Assets Fail? How do Assets Fail? What are the likelihoods and consequences of Asset Failure? What does it cost to repair the asset? What are other costs that are associated with asset failure? Plant /Equipment Failure with Time Number of Faults λ λ= 1 M.T.B.F A B C Understand the Risks and Predict when the Asset will Fail. What are the Assets highest risk Activities? Timein Years Plant A Plant B Plant C

13 These two Assets are Nearing their Life s End These Repairs have a High Cost

14 4 Does Management have alternative Strategies?( One option may beto run the plant till it fails!) What Strategies are the most Feasible for the organization? Management may go along one of two options 85% of Utility s Annual Expenditure!! How does Management arrive at a decision about a Maintenance Option?

15 Best Practice Move from Reactive to Proactive Maintenance Carry out/know the costs and benefits of Rehabilitation vs Replacement Carry out a Life Cycle Cost Analysis for Critical Assets Deploy Resources based on Asset Conditions Develop and Validate CIP Learn how to move your maintenance planning and scheduling performance towards the Pacesetter results in the table below. Key Performance Indicators Poor Performance Pacesetter Performance Hands on tools time % possible Jobs per man-day (Mech, I/E) Testing jobs overdue % 20 2 Mechanics per Planner 8-10: :1 Maintenance Workforce Weeks 8-10 weeks 4 weeks Backlog % of Planned work <50% >80% Schedule compliance <50% >90% Urgent job requests 70% 5%

16 5 What is the full economic cost Associated with the Utility How can full cost pricing be implemented? Definition: A full Cost Pricingfor a Power Utility Service is one which fully recovers the cost of providing that service in an economically efficient, environmentally sound, and socially acceptable manner, and which promotes efficient energy use by customers. Such a Pricing Strategy can be represented as follows:

17 What is the Best way to go? What is the Best Practice. Routinely review and revise the rate Structure( inflation, changes in government policy, etc.) Fund a dedicated reserve from current revenues( create an Asset annuity) Finance Asset renewal and replacement through borrowing An asset management plan should be developed based on the best current information that is readily available. The more information the utility has, the better the plan can be. What is the utility s cash flow projection for the next five to ten years? Knowing how much money will be coming in and going out will helpwith managing assets. It s very important for the plan to establish financial and performance benchmarks lack of goals equals lack of growth (both financial and capacity). An asset management plan should be reviewed at least once a year, noting any relevant changes. Throughout the year, systems shouldkeep a running list of items to consider or include in the annual update. 47

18 The Plan-Do-Check-Act (PDCA) Methodology Management review Asset Management Policy ACT PLAN Performance Assessment And improvement Performance and condition monitoring Investigation of Asset related failures incident and non conformities Evaluation of compliance Audits Improvement actions Records CHECK Management System Requirements Implementation of Asset Management plan(s) Life Cycle Activities Tools facilities and equipment Asset Management Strategy (Objectives and plans) DO Asset Management Enablers and Controls Structures, authority and responsibilities Training Assessment and competence Communication, participation and consultation Asset Management System documentation Information management Risk Management Legal and other requirements Management of change

19 What are the Signs, Symptoms and Effects of Poor Asset Management? Poor asset management leads to poor data quality and poor data quality can negatively affect the business over time. In fact, experience shows that there are a number of common causes that can lead to poor asset management, including lack of business controls for managing and/or updating asset data; lack of ownership for asset data quality; and an outof-balance investment in people, process, data and technology. In addition, some businesses may not consider asset management to be a critical function, focusing on audits only; while others may notconsider asset data to be an important component of the business s intellectual property. The primary symptoms of poor asset management are also fairly ubiquitous, and may include anything from numerous compliance and security issues, to uncontrollable capital and/or expense budgets, excessive network downtime and poor performance, under- or overutilized assets, incompatible software applications, increasing operational costs and headcount, and non-matching asset data derived from different organizations and/or business systems.

20 The result of poor asset management can ultimately be devastating to a business, often leading to one or more of the following negative impacts: Increased Asset Total Cost of Ownership (TCO) Decreased work force productivity Increased non-compliance issues Decreased Customer Satisfaction Lower Return-on-Investment (ROI) on capital investments Decreased network/business performance Increased number of internal and external audits The causes of poor asset management can be many; the symptoms pervasive; and the results devastating.

21 Example of Poor Asset Management The Road sector in general Municipal roads in particular. What do they lack? Maintenance Street Lighting Maintenance Street work (public utilities activities) Structures Road Traffic Accident Studies Pavement Management (asset management planning) Customer Services

22 Lessons to be learned Recognize that achieving change is the biggest issue early appointment of a change manager can make all the difference Plan for the best achievable solution, taking account of needs, constraints and competencies of the organization Recognize the impact on organizational culture and treat it as important Allow time Flexibility is essential And recognize that the end result may not be as originally conceived but should represent the greatest improvement achievable

23 Critical Enablers Delivery of the strategy is only possible if a stable and effective implementation framework exists. This framework must ensure thatonce the 'right thing' has been identified it can be delivered effectively and efficiently. an organizational structure that facilitates the implementation with clear direction and leadership; staff awareness, competency, commitment and cross-functional coordination; adequate information and knowledge of asset condition, performance, risks and costs, and the interrelationships between these. Skills R&D, supply chain development, Information and Knowledge Management socio-economics etc). In addition to these specific responsibilities, it is important to define the organizations approach to a number of other subjects. These responsibilities and strategies are known as Critical Enablers.

24 Key principles and attributes of asset management

25 END