a comprehensive view on Asset Management Strategy

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a comprehensive view onAsset Management Strategy

• Philip Wester
• NUON Asset Management

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contents

• establish the asset management concept
• describe shallowly the different areas that
  should be covered by designing an asset
  management process
• the way NUON implemented the asset management
  process

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• what is an ASSET

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ASSET anything capable of creating value to
stakeholders
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• what is ASSET MANAGEMENT

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• ASSET MANAGEMENT
• management of the process to create value through
  the assets concerned

• HRM management of the asset people
• ICT management of the asset information
• AM utility management of infrastructures
• CM capital management finance management
• CRM management of customers relation and
  companies image

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Utilities asset management definition
Asset management responsibilities involve the key
decision making for the network business to
maximize long term profits, while delivering
high service levels to the sutomers with
acceptable and manageable risks
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Positioning of Asset Management in power
utilities business
energy traders
customers
generators
system operator
suppliers
regulator/legislators
maintain functionality
manage
employees
external organisations
control operation
asset management
owner(s)
public
assets
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Asset Management Accountabilities
Maintaining Network Functionality Accountabilitie
s
Management Accountabilities
- Strategic Asset Management (incl.
Reinvestment Strategy) - Risk Management - Safety
Management - Cost Revenue Management -
Information/comm. strategy
- Maintenance Strategy - Maintenance Management -
Condition Assessment - Work Safety Management -
Spare Part Management
Operation Accountabilities
level of outsourcing
Vision, Goals
strategic

• - Operation Management
• - Operation Instructions
• Outage/emergency Management
• Contract Management

Strategies, policies, standards
Planning
operational
Realisation
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• which items should be covered
• in implementing
• an asset management approach?

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strategy
process
organisation
information

• architecture
• management information
• decision support

• structure
• accountabilities
• skills competencies
• outsourcing

• risk management

• stakeholders values

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strategy
process
organisation
information

• how to develop a strategy that takes into account
  added values of all stakeholders?

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strategy stakeholders value
toolbox risk strategies

• investment
• maintenance

asset managers core business find an optimal
balance between stakeholders values
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establishing priorities
forecast
cash flow
expected reliability
expected continuity
capex
opex
environment consequence
ist/soll
ist/soll
budget
budget
ist/soll
priority mode contribution to ist/soll gap
project 1
project 2
order
project 3
project x
energy not supplied
power quality
satisfy cash flow and profitablity demand
damage to society
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strategy
process
organisation
information

• architecture
• management information
• decision support

• structure
• accountabilities
• skills competencies
• outsourcing

• risk management

• stakeholders values

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strategy
process
organisation
information

• how to organize in such a way that adding the
  different values is stimulated?

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Organization gtgt adding value
Asset Management
Service Provider
Asset Ownership

• Asset owner creates value by
• Identifying the needs of stakeholders/business
  environment
• Setting business values and risk levels with
  needs
• Asset manager creates values by
• Assessing asset specific risks against values
  set by owner
• Contracting providers with best price/quality
  performance
• Service provider creates value by
• Keeping costs to a minimum for the specified
  level of work

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AM organisation directed at adding value
Asset Management
decision/design
process control
data collection
problem/opportunity identification
performance data
reporting
evaluation
control work execution
continuous improvement cycle
work administration cycle
scenarios, alternatives
scheduling
decisions process project design
resource estimating
operating, build maintenance plan
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Outsourcing risk of competence loss?
Essential competency necessary for taking full
responsibility
Protective competency risk of outsourcing is too
high for organization
Distinctive competency most important capability
reason for existence
low Risk high
Spillover competency market chances creating
extra turn over
Parasitic competency wasting organizational resou
rces
low Effectiveness
high
Maintenance Outsourcing Guidelines, Cigré
Brochure 201
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strategy
process
organisation
information

• architecture
• management information
• decision support

• structure
• accountabilities
• skills competencies
• outsourcing

• risk management

• stakeholders values

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strategy
process
organisation
information
what is in essence a risk management process?
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Risk versus Reliability Management

• Reliability Management (according to SAE standard
  JA1012) is a process to develop a set of policies
  that preserve the functions of the system under
  consideration to standards of performance that
  are acceptable to its user (economical,
  technical)
• Risk Management is an RCM based approach that
  takes into account the event consequences for the
  business environment and the corporation strategy
  (economical, technical, societal/strategic)

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Risk Management in a nutshell

• Risk Management is a continuously running process
  where risks are inventoried and prioritized based
  upon corporate targets, measures to control these
  risks are chosen and executed, evaluated and
  actualized.
• Risk Management is as such a continuous
  improvement process covering the business
  environment as a whole

execute/ actualize risk analysis
evaluate control measures
inventory choice control measures
execute control measures
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basis for AM risk decisions

• keywordgtSustainability attention for balancing
• Society safety, availability, strategic
  consequences
• Economy costs, investments, cash flow
• Technical outages, quality of supply, condition

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risk directed activities
probability
risk
consequence
performance
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strategy
process
organisation
information

• architecture
• management information
• decision support

• structure
• accountabilities
• skills competencies
• outsourcing

• risk management

• stakeholders values

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strategy
process
organisation
information

• information requirements for an
• Asset Management decision process

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AM cockpit decision making process
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Information strategy directed at Asset Management
decision process
Decision
corporate level
Risk management
system level
Reliability management
Safety Social System
impact assessment
asset level
System (? Dollar)
S3 Risk assessment
Condition assessment
Financial information
Asset information
Societal information
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Information pyramid gt decision
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Information requirements AM decision
decision level
sustainable asset management decisions
asset management information requirements
data analysis level
Economical performance
Technical performance
Sociological performance
data integration level
data warehouse
front information systems level
EOS Asset operation systems (SCADA, EMS)
EAM systems Enterprise Asset Management systems
ERP systems Enterprise Resource Planning systems
accoun tabilities
management
maintaining functionality
operation
utilities business
generation
TRANSMISSION DISTRIBUTION
consumption
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strategy
process
organisation
information

• architecture
• management information
• decision support

• structure
• accountabilities
• skills competencies
• outsourcing

• risk management

• stakeholders values

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• NUON implementation
• of asset management process

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NUON decisions gt sustainability
Decision model for choices priority CAPEX and
OPEX projects includes Life Cycle
Assessments based upon asset reference
planning and scenario approach
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NUON embedding AM organisation
separation system operator, asset manager,
service provider
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internal AM organisation
separation asset management into 1.
development/decision responsible process 2.
control process (incl. auditing)
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challenge risk strategy
asset grouping according to risk/performance class
high
risk
basis certified maintenance
technical, economical societal
high
low
performance
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certified maintenance
certified process
ISO 9002
expert rules
analyse advice
FMECA register
measure maintain
storedata
inspection maint.prog
norms standards
inspector
tool 2 standard, human independent cbm approach
tool 1 performance bank condition data
i-
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maximum performance information
at disposal for other utilities to maximize data
population and improve decisions
new, independent, non commercial, organization
operates platform
growing knowledge, applied analysis
i-
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data management tool inspector? software
application for execution of CBM
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data storage analysis tool i-Core? software
application for analyzing masses of data
type time
analysis
HV CB velocity measurement
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summarizing theory and
strategy
process
organisation
information

• architecture
• management information
• decision support

• structure
• accountabilities
• skills competencies
• outsourcing

• risk management

• stakeholders values

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NUON practice implementation AM process
strategy
process
organisation
information

• architecture
• management information
• decision support

• structure
• accountabilities
• skills competencies
• outsourcing

• risk management

• stakeholders values