ISO Framework for Futureproofing

Transcription

1 CSIC Workshop on Futureproofing in Asset Management ISO Framework for Futureproofing Dr Navil Shetty Director & Technical Chair for Asset Management, Atkins 2 April 2014, Cambridge

2 About the speaker Dr Navil Shetty Technical Chair Asset Management, Atkins Co-author, PAS 55: 2008 Convenor, ISO/PC251 Working Group 1 IAM President s Award Winner, 2013 Member, IAM Faculty and Knowledge Committee Adviser, PAS BIM standard, years experience in asset management & risk management in rail, highways and oil & gas sectors

3 Outline Asset management why and what? ISO standards Futureproofing in Asset Management Futureproofing challenges

4 Infrastructure deficit A global crisis Sustained underinvestment in infrastructure over several decades has resulted in a massive backlog requiring trillions of $ recovery fund around the world. $57 trillion global infrastructure investment needed in ($3.2 trillion/year) to sustain current service levels and meet future demand (~ 3.5% of GDP); but excludes recovery of backlog (McKinsey Report) $101 billion per annum wasted in USA due to road congestion

5 What challenges do infrastructure authorities face? Increasing demand Deteriorating asset base Funding constraints Conflicting priorities Sustainability & climate change The usage and duty on assets is rapidly increasing with time, combined with greater demand from public for safety, reliability & value-for-money The physical assets in most developed countries have deteriorated over time as a result of prolonged underinvestment leading to increased risk of asset failure and service interruptions Available funding is not sufficient to recover the backlog quickly and bring the assets to a state of good repair. This is compounded by logistical constraints and limited window to undertake maintenance and renewal Need to balance diverse and sometimes conflicting expectations and priorities of different stakeholders (National Govt., Regional Govt., regulators, customers, shareholders, etc) Need to ensure longer term sustainability; achieve carbon reduction while supporting economic competitiveness and make assets resilient to the impacts of climate change

6 ISO 5500x Suite ISO 55000: Overview, principles and terminology ISO 55001: Management system requirements ISO 55002: Guidelines for the application of ISO ISO : Competence requirements for auditing and certification of asset management systems (FDIS) The standards can be applied to all types of assets and by all types and sizes of organizations, although particularly intended for use on physical assets. 6

7 Definition of key terms Asset an item, thing or entity that has potential or actual value to an organization Asset Management coordinated activity of an organization to realize value from assets Asset Management System set of interrelated or interacting elements of an organization to establish AM policy and AM objectives; and processes* to achieve those objectives *processes include people, resources, processes, information and technology

8 Hierarchy of AM activities Asset management involves different types of activities Boundary of Asset Management Organizational Management Activities such as leadership, governance, strategy, organizational planning, HR, Finance, IT, Procurement, etc Asset Portfolio Direction, Coordination and Control Activities such as leadership, governance, policy, performance evaluation, review and continual improvement to ensure consistent delivery of AM objectives Strategic Alignment Activities such as setting AM objectives, planning, risk management, performance evaluation to align Asset Life Cycle Activities to organizational objectives ATKINS Asset Life Cycle Activities directly applied to assets during different life cycle stages, such as acquisition, utilization, maintenance or disposal.

9 CONTINUAL IMPROVEMENT CONTINUAL IMPROVEMENT Structure of ISO Follows a common structure for all (future) ISO management systems CONTEXT OF THE ORGANIZATION 4.1 UNDERSTANDING THE ORGANIZATION AND ITS CONTEXT 4.2 UNDERSTANDING THE NEEDS AND EXPECTATIONS OF STAKEHOLDERS 4.3 DETERMINING THE SCOPE OF THE ASSET MANAGEMENT SYSTEM 4.4 ESTABLISHING THE ASSET MANAGEMENT SYSTEM LEADERSHIP 5.1 LEADERSHIP & COMMITMENT 5.2 POLICY 5.3 ORGANIZATIONAL ROLES, RESPONSIBILITIES & AUTHORITIES 10.1 NON-CONFORMITY & CORRECTIVE ACTION 10.2 PREVENTIVE ACTION 10.3 CONTINUAL IMPROVEMENT IMPROVEMENT PLANNING 6.1 ACTIONS TO ADDRESS RISKS AND OPPORTUNITIES 6.2 ASSET MANAGEMENT OBJECTIVES AND PLANS TO ACHIEVE THEM SUPPORT 7.1 RESOURCES 7.2 COMPETENCE 7.3 AWARENESS 7.4 COMMUNICATION 7.5 INFORMATION REQUIREMENTS 7.6 DOCUMENTED INFORMATION 9.1 MONITORING, MEASUREMENT, ANALYSIS AND EVALUATION 9.2 INTERNAL AUDIT 9.3 MANAGEMENT REVIEW PERFORMANCE EVALUATION ATKINS OPERATION 8.1 OPERATIONAL PLANNING AND CONTROL 8.2 MANAGEMENT OF CHANGE 8.3 OUTSOURCING OF AM ACTIVITIES

10 THE GLOBAL CHALLENGE A DEFINING QUESTION OF OUR TIME: How to manage growth and poverty reduction against backdrop of climate change, resource scarcities, environmental depletion, and rapid population growth

11 THE GLOBAL CHALLENGE 80% of the world s population already live in areas with high threat to water security 95% of food production is highly dependent on oil 60% of the world s ecosystems are already either degraded or used unsustainably 11% of the world s remaining natural areas could be lost by 2050

12

13

14 Futureproofing in Asset Management Definitions: Futureproof (as an Asset attribute) the ability of an asset to continue to be of value into the distant future Futureproofing (as an Asset Management activity) the process of anticipating the distant future and taking actions to minimize risks and maximize opportunities for value realization from assets

15 ISO requirements for futureproofing Clause 4.1: Understanding the organization and its context The organization shall determine external and internal issues that are relevant to its purpose and that affect its ability to achieve the intended outcome(s)... the issues can include long term changes to political, economic, social, technological, environmental and legal (PESTEL) factors Clause 4.2: Understanding the needs and expectations of stakeholders The organization shall determine: the requirements and expectations of these stakeholders with respect to asset management the criteria for asset management decision making The decision criteria need to be agreed with stakeholders; and should address how short term needs will be balanced against longer term risks and opportunities Note: text in italics is Atkins interpretation of ISO for futureproofing

16 ISO requirements for futureproofing Clause 6.1: Actions to address risks and opportunities... the organization shall consider the issues referred to in 4.1 and the requirements referred to in 4.2 and determine risks and opportunities,...and how these can change with time longer term risks and opportunities arise from uncertainties in PESTEL factors Clause 6.2: Asset management objectives and plans to achieve them When planning how to achieve its asset management objectives, the organization shall determine and document: b) the processes and methods to be employed in managing its assets over their life cycles; h) the appropriate time horizon(s) for the asset management plan(s); k) actions to address risks and opportunities associated with managing the assets, taking into account how these risks and opportunities can change with time for futureproofing the time horizon for AM planning should extend to the life of infrastructure assets; with a minimum of 60 years Note: text in italics is Atkins interpretation of ISO for futureproofing

17 ANTICIPATING THE RISKS PERFECT STORM OF RISK FACING CITIES

18 Risks and Opportunities OPPORTUNITIES Demand growth Need for infrastructure capacity Socio-economic development Improve sustainability RISKS Resource scarcity Damage to ecosystems Climate change impacts Social unrest

19 Time horizon for futureproofing? Years AM Planning Obsolescence Management Master Planning Scenario Planning Futureproofing? Whole Life Infrastructure Planning?

20 Futureproofing measures Integrated, whole life infrastructure planning Scenario Planning Long range planning (~30-60 years) by anticipating possible future scenarios and formulating a range of adaptive plans for responding to these scenarios Master Planning Long range planning (~20-30 years) for creating the required infrastructure capacity to meet the growing future (regulated) demand in an adaptive way Business Planning Setting medium term (~5-10 years) business objectives, balancing multiple stakeholder needs and planning to achieve business goals and objectives System Planning Optimising interventions across asset classes to deliver the required system / network performance considering the interaction between assets (~5-10 years) Asset Class Planning Determining the optimal mix of interventions (create/acquire, utilise/maintain, refurb. /renew/dispose) by optimising cost, risk and performance (~5-10 years) Asset Life Cycle Planning Unconstrained optimal strategy for managing a class of assets over their life cycle by optimising cost, risk and performance (~ years)

21 POTENTIAL ACTION SPACE: 100 POLICY AREAS

22 MAXIMISING BENEFITS: RESPONSES WITH MULTIPLE ENVIRONMENTAL BENEFITS

23 Challenges for futureproofing infrastructure What should be the time horizon for futureproofing? Who are the stakeholders? Who are the decision makers? How do we balance long term risks against near term needs? Who should pay for futureproofing? How do you make a business case? What discount rate should we apply?

24 FURTHER INFORMATION Web Atkins FPCs services brochure Social media #futureproofingcities