Implementing Asset Management In A Complex & Sensitive Environment

Transcription

1 Implementing Asset Management In A Complex & Sensitive Environment Michael Smith BSc(Hons) MRICS MIAM Technical Director, AECOM, Strategic Asset Management

2 Content 1. The particular needs and sensitivities of working on a nuclear licensed site 2. How PAS55 was used as the basis to implementing improved asset management arrangements 3. The use of the IAM s assessment tool to identify gaps in existing arrangements 4. The development and implementation of a comprehensive improvement plan 5. Learning from the experience and how the approach can be implemented in other sectors 6. Experience of Asset Management from other industries and the extent that PAS55/ISO55001 has been taken up in certain sectors 7. A wider UK perspective on Asset Management

3 1. The particular needs and sensitivities of working on a nuclear licensed site

4 Sellafield has more than 60 years of history s/50s 1960s/70s 1980s 1990s 2000s Nuclear build begins Initially a military programme Later civil programme begins World s first ever commercial nuclear power station Waste stored safely pending treatment Storage capacity extended incrementally Coarse segregation of waste arising from process Magnox reprocessing starts Main expansion of site Major waste treatment focus Environmental impact substantially reduced Decommissioning programme started True commercialisation of reprocessing Thorp online Waste arising from processes treated in real time Product waste forms compatible with disposal concepts Decommissioning gathering pace Sellafield landscape changing forever New client organisation formed New M&O contractor appointed Annual Budget in the region of 2bn Target to return to greenfield site by 2120

5 Sellafield Today NO MARKING REQUIRED

6 Sellafield Structure In 2009: Time of Implementation of PAS-55

7 Agreement of Asset Management Principles Agreed Management Principles with Stakeholders. 18 Principles in total (Based on PAS55 ). Main areas are: Establish comprehensive asset register Establish asset management processes Establish risk management framework Establish responsibilities and accountabilities Categorise assets based upon consequences of failure and degradation Establish condition of assets and their performance requirements Establish agreed and funded delivery plan Worth noting that the journey was started by Sellafield themselves but the client, NDA, adopted PAS55 as part of their strategy across UK

8 Other Key Documents Policy for the Management of Physical Assets What we will do Asset Management System Manual Guidance on how we will do it, underpinned by: Practices and Supporting Practices Detailed guidance on how we will do specific components of it. Asset Management Improvement Plan Live document showing where we are on the journey and the steps we are taking and why we are taking them

9 Risk Calculation and Management Techniques 1. Qualitative Risk Process Simple technique that uses a 5 X 5 matrix of likelihood and consequence Easy to use and scores are comparable Shortcomings in terms of risk change over time and total (lifetime) risk Can be subject to errors based on judgement Likelihood > Consequence > 2. Quantitative Risk Process More complex modelling technique Calculates and profiles risk over time Can model options for mitigation = optimised decision making (investment criteria) Requires more effort and better input data x = Risk Event Cost Probabilities Risk Quotients

10 Benefits of a Common Risk Approach Facilitates enterprise wide asset management Provides a critical asset risk path for plants/assets that are required to meet strategic objectives Supports preparation of Asset Management Plans that are suitably underpinned with accurate asset data Increases the ability to successfully manage emergent asset lifecycle risk Improves stakeholder/regulator confidence and demonstrates value for money regarding asset investment

11 2. How PAS55 was used as the basis to implementing improved asset management arrangements

12 Use of the IAM Conceptual Model

13 The IAM Model Applied at Sellafield NO MARKING REQUIRED

14 3. The use of the IAM s assessment tool to identify gaps in existing arrangements

15 The IAM Assessment Tool The assessment tool was chosen for the following reasons: It is free of any commercial bias It can be applied to all sectors Allows organisations to assess their capability across the 27 sub-clauses of PAS55 and now ISO and GFMAM 39 subjects Enables organisations to share and compare their own capability with others Facilitates the identification of best practice Self-assessment alone not effective. The involvement of an independent third party makes the process more credible

16 Measuring Progress

17 4. The development and implementation of a comprehensive improvement plan

18 AM Improvements Implemented As Part of Wider Improvement Programme

19 AM Improvement Plan Key Themes D. Asset Management Workstream D1. Asset Register and categorisation D2. Asset Risk profile D3. Condition assessment D4. Asset Mgt Organisation & arrangements D5. Job/Task Design/Delivery Capability

20 Asset Management Improvement Phases Historical Historically resourced and locally prioritised Controlled Issues understood and prioritised based on risk Optimised Asset cost, risk and performance optimised to deliver NDA missions March 2009 March 2012 March 2014 but improvements Maintenance Re-engineering Programme still ongoing

21 Asset Management Improvement Timeline Asset Hierarchy created (2002) SAMdB born as access Database (2003) SAMdB recreated in Sequel Database (2005) Qualitative Risk Process Developed (2010) Qualitative Risk Process Embedded Across the Site (2011) Divisional AMPs developed Asset (2013) Management Processes Written and Implemented (2011) Achieved Ops Division NDA target OUSB score of 3 TORs agreed & AMOC established (2014) Risk reduction curve produced (2014) ISO 55000? st AMPs being produced in excel workbooks (2003) PAS55 adopted. AM Principles Agreed with NDA, ONR & EA (2009) Initial self assessment score of 1.5 Quantitative Risk Process Piloted (2011) Interim assessment. Score of 2.8 Quantitative Risk Process Used to Develop Optimised Asset Management Plans (2012) Critical Asset Dashboard established (2013) AIF Developed (2014) Operations Division prioritised worklist Produced (2014) Enterprise Asset Management Team established

22 Underpinning of Improvement Plan With Comprehensive Training Programme

23 5. Learning from the experience and how the approach can be implemented in other sectors

24 Key Learning Points The agreement of common principles among all key stakeholders early in the process was crucial The use of PAS55 as a tried and tested blueprint for implementing improved asset management was a key enabler Categorise the assets first in relation to impact on business objectives before risk assessing issues Simplify the improvement plan and focus on key areas that will make the biggest difference If something doesn t work first time don t jump to changing the process. It may be people s culture and behaviors that have to change Enterprise wide approach is essential. Silos need to be removed to fully implement Asset Management principles fully

25 6. Experience of Asset Management from other industries and the extent that PAS55/ISO55001 has been taken up in certain sectors

26 Sector by Sector Nuclear Sectors Transportation (Rail &Highways) Defence Government Organisations (Central & Local) Utilities Industrial Brief Appraisal of Sector In the decommissioning sector the Nuclear Decommissioning Authority (NDA) has mandated that PAS55 is implemented at all of its sites. NDA are still considering the implementation of ISO In the nuclear power generating sector companies such as EDF were early adopters of PAS55 and are relatively mature Both Network Rail and the Highways Agency now mandate ISO55001 and their regulators are severely critical of both for poor asset management. End of austerity seen as key to unlocking big infrastructure projects but might not be panacea that many expect Big push to reduce the size of the estate to match the reduced size of the armed forces following the end of the cold war. Due to the reliance on buildings and land for training, focus has been on using the RICS guidelines as opposed to PAS55 or ISO Big push to maximise capital receipts from surplus property All government organisations are under increasing pressure to reduce their asset related expenditure. This is a picture that is emerging across the UK as government organisations seek to outsource their service provision and reduce the size of their asset base. Again, push to maximise capital receipts from surplus property As an early adopter the Utilities sector is relatively mature in the UK with regard to implementation of PAS55/ISO Focus is now on optimisation. Many of the enquiries for our services are originating from the Middle East, US and Ireland where utility companies in particular have embraced ISO Comparatively low uptake in this sector due to lack of any regulator mandating PAS55/ISO CEOs and Finance Directors in commercially focussed organisations yet to be convinced of the benefits

27 7. A wider UK perspective on Asset Management

28 State of the Nation: Infrastructure (1) Source: State of the Nation Infrastructure 2014, published by the Institution of Civil Engineers Sector 2010 Grade 2014 Change Comment Objectives for 2018 Strategic Transport Local Transport B B Stable Without action, the costs of congestion could more than double between 2005 and 2025, to 3.6 billion. Rail passengers travelled 59 billion kilometres in 2013/14, an increase of almost 50% since 2003/04, stretching the capacity of the network. In aviation UK airport delays are above the European average with significant capacity challenges in the South East of England likely without new runways D D- Declining Maintenance investment in local roads has declined by 11% in real terms from 2010/11 to 2014/15. This has left onethird of local roads in urgent need of attention. Long-term plans for strategic roads projects and their investment should be in place Railway infrastructure should be more resilient to severe weather and the capacity of the network should be increased Decisions regarding South East airport capacity should have been taken and be in the process of implementation Improve decision making capabilities of transport authorities in city regions Reduce the maintenance backlog on local roads Notes on Grading: A - Fit for the future B - Adequate for now C - Requires attention D - At risk E - Unfit for purpose

29 State of the Nation: Infrastructure (2) Sector 2010 Grade 2014 Change Comment Objectives for 2018 Energy D C- Improving Over the next decade, around a fifth of the UK s electricity generating capacity (fossil and nuclear) is expected to be retired putting further pressure on de-rated capacity margins which are at 4% at peak demand periods. Water B B Stable Despite its ageing infrastructure profile, water continues to perform well and proposed changes to economic regulation should provide water companies with opportunities to rely less on large capital projects and use soft engineering techniques and technology. Issues of water availability, particularly in the South East and London are the main challenge Sufficient ongoing investment confidence to provide security of the electricity energy supply; capacity margins during peak periods that ensure the UK continues to have sufficient generating capacity to meet demand Clear decarbonisation pathways to 2030 that the UK on the road to its 2050 commitments demonstrably put Implementation of soft engineering techniques for surface water drainage and catchment management There should be a reduction in the volume of water flowing into the sewerage network A more determined approach to reducing demand for water would yield cost savings for consumers and benefits to the environment Notes on Grading: A - Fit for the future B - Adequate for now C - Requires attention D - At risk E - Unfit for purpose

30 Final Thoughts & Challenge Many problems face the world today in terms of aging infrastructure An advanced approach to Asset Management, but particularly one that is holistic, is going to be needed to solve them Asset Management is an idea of it s time with never so much interest in it as a discipline Can we get Asset Management into the Boardroom and convince CEOs and Finance Directors of it s benefits?