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Best Practices of Distribution Networks Asset Management in view of PAS55 Framework


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Best Practices of Distribution Networks Asset Management in view of PAS55 Framework
Matar S. Al-Mehairi (Member IAM) and Sharif M. Al-Batayneh (Member IEEE) Asset Management Department, Dubai Electricity & Water Authority (DEWA)

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Best Practices of Distribution Networks Asset Management in view of PAS55 Framework

  1. 1. Best Practices of Distribution Networks Asset Management in view of PAS55 Framework By Matar S. Al-Mehairi (Member IAM) and Sharif M. Al-Batayneh (Member IEEE) Asset Management Department, Dubai Electricity & Water Authority (DEWA) ■ +971 4 407 2526 ■
  2. 2. Best Practices of Distribution Networks Asset Management in view of PAS55 Framework Al-Batayneh, Sharif M. (Member IEEE), and Al-Mehairi, Matar S. (Member IAM) Dubai Electricity & Water Authority (DEWA), Asset Management Department 1 Abstract--“In the race for excellence there is no finish line [1]”, and from the Utilities Operators/Managers view point the race for excellence is solely a race for an optimum Asset Life-Cycle Management. Especially for Distribution network operators/managers, having an intensive portfolio of assets, with all the related costs, risks & performance involved in the whole life cycle management process. Nowadays, Asset Management teams are facing an uphill challenge, with continual (on daily basis) increase in an already huge asset portfolio, and with the recent economic crisis adding yet another stone to hurdle the efforts of the Asset Management approach adopted by many utilities worldwide. Challenges, led by the ageing infrastructure and the increase in their failures, are two of the most arguable and debatable topics. Theft of copper is yet a new risk which is to be either controlled or eliminated as per the organizations strategy, and this is another task for the Asset Management team. Invisible assets, such as cables are a critical part of the infrastructure which needs to be addressed & condition monitored under the RCM philosophy. Asset Management is to optimize the three pillars of the whole life cycle activities of assets: risk, cost & performance, and this can be done within the guidelines of the PAS 55. This paper will highlight the best practice model of the Distribution Power Asset Management under the Dubai Electricity & Water Authority in view of PAS 55. Index Terms-- Asset Management, Condition Monitoring, Crisis Management, Failure Investigation, Life-Cycle, Publically Available Specification (PAS), Risk Management. I. INTRODUCTION ISTRIBUTION Network operators/managers worldwide face a continuous challenge for the sake of achieving the optimum balance of the whole-life-cycle of their assets, and here we mean physical assets. As per PAS 55, “Physical assets represent only one of the five broad categories of asset types [2]”. All the asset types should be managed intrinsically to achieve the total business objectives, however, the focus of our discussion and as well the scope of PAS 55 is focused objectively on the physical assets. Figure-1 highlights the correlation of physical assets to other asset types as defined in the PAS 55 [2]. Fig. 1. Critical interdependencies between assets [2] In any utility, Assets might have two extremely opposing impacts on the business, either drive business (i.e. not manageable) or serve business (i.e. managed to serve business goals). Any Asset Owner/Manager would like to have the latter case; wherein they can manage their assets optimally to deliver the planned business goals. Distribution Asset Management in DEWA was established in 2009 upon an extensive urge for the assignment of an independent body under the Distribution Power Division to take-over the responsibility of managing the existing portfolio of physical assets and regularizes the practices of Operations & Maintenance to be in-line with internationally adopted best- practices. The assets of Distribution Network of DEWA are outlined in table-1 & 2 below: TABLE 1 Distribution substations & capacities as on 2011 Voltage level Sub level No. Of Substations Capacity In MVA 132kV* 132kV 2 - 132/33kV 17 3,795 132/11kV 147 22,770 33kV 33kV 3 - 33/11kV 37 1,235 33/6.6kV 95 3,035 11-6.6kV - 25,656 34,228.75 Within a quick look on the above table, one understands the sum of Assets/Asset systems underlying these figures; of which requires systematic & well-coordinated practices to optimally manage them. TABLE 2 Length of Distribution Cable & OHL network Voltage level Type Length (km) 11-6.6kV OHL 721 Underground 23,978 33kV OHL 113 Underground 1,985 D ________________________________ * Distribution ownership of assets under the 132/33kV & 132/11kV substations is only for 33kV & 11kV switchgears, respectively.
  3. 3. 2 Fig. 2. Growth of 11-6.6kV Cable system in DEWA As seen in Fig. 2 above, the MV cable network (for 11- 6.6kV) have seen a vast growth in between 2005 and 2011. The rate of expansion seen was approximately 150%. The results of an optimized life-cycle Asset Management can be outlined by the below:  Increased customer satisfaction.  Better occupational, health & safety practices.  Increased ROI.  Achieving sustainability.  Improved risk management.  Controlled & systematic processes.  Staff empowerment. II. ASSET MANAGEMENT & PAS 55 Asset Management in its essence is not simply a department or section that is established in any utility, but rather is an organization culture. A culture which is adopted at all levels of the organization ensuring the buy-in from all concerned stakeholders for the successful adoption of Asset Management. Figure 3 highlights the different levels of assets & their management [2]. Fig. 3. Levels of Assets and their management [2] At each level we can outline the requirements as below:  “Managing Assets” level (operational level): Optimize life-cycle activities, such as; acquisition, utilization, maintenance & disposal of assets.  “Managing Asset Systems” level: In this level our concern is to ensure the performance is sustained and the cost/risk are optimized.  “Managing Asset Portfolio” level: CAPEX optimization and planning for sustainability.  “Corporate/Organization Management” level: Organizational Strategic Planning level, which is beyond the boundary of PAS55 framework. When looking at ageing infrastructure, we take normally replacement decisions (at expected end of life of equipment- refer figure 4 below) and while taking that decision we might fall under two extremes, either:  We replace too early; thus, incurring extra costs on the non-utilized life of replaced equipment; or  We replace too late; upon encountering too many failures, again incurring extra costs on repairs, spare parts, or loss of revenue due to shutdowns, etc. Fig. 4. Asset expected-life curve There is a threshold point on the curve (named “P”) upon which many decisions can be taken; this point is to be defined by Asset Managers for each of their assets. This potential to failure point, if properly defined, can extend the life cycle of equipments and thus improve on asset utilization. It is a challenge to any Asset Manager, but the outcomes are rewarding. To decide on this point it is essential to have an established and reliable data for the utilization of the assets, namely, Maintenance records, failures records, condition history, or other relevant data depending on the business of the organization. A correlation of all the above data will be necessary to analyze any trends, probabilities, or repeated failures and the scope of works that can anticipate for them in order to get an approximation of the above point (“P”). In another perspective, there are many factors to manage assets of which can be outlined by the followings:  Benefits/goals outreached: short term vs. Long term.  Cost savings: expenditures vs. Performance levels.  Availability: Planned vs. Unplanned.  Financial: Capital costs vs. Operating expenditures.
  4. 4. 3  Asset Levels: Discrete equipment vs. Complex functional systems (e.g. utility networks). All the above factors to be embedded in the framework of the PAS55, which defines for each level of the organization hierarchy the requirement of that level (refer Figure 3 above). Accordingly, a proper SWOT analysis is recommended to be able to decide on the factors upon which Asset Managers will manage their assets. As many of the decisions will dictate how well the business would perform (Strengths & Weaknesses), and what challenges (Threats) it will encounter as well what opportunities will open up for exploring. Asset Management drivers comes from the criticality of the assets/asset systems to its business core purpose. These drivers might be one or a combination of the follows:  Sustainability: From three perspectives; i.e. economy (expansions, seeking alternatives, etc.), society (consumer satisfaction, awareness, etc.) or environment (reducing pollution, seeking environmental friendly solutions, etc.).  Reliability & Safety (consistent with performance & risk).  Accountability (or “do what you say”).  Privatization: From the perspectives of achieving appropriate service levels within a cost saving boundaries.  Regulation. Asset Management can be sub-divided into two main disciplines: A. Asset oriented: concerned with age, condition and performance of the physical assets. Here we apply the Life-Cycle concepts. B. Service oriented: concerned with the stability of the services, its cost benefit and expenditures involved (seen from the two perspectives of CAPEX and OPEX). The first discipline concentrates on the network items and their maintenance policies or condition monitoring practices. This is covered by following the manufacturer’s recommendations, the experience gained from operating them and a sound engineering judgement [3]. Eventually, maintenance cycles are produced for all equipments, and periodicity of equipment condition assessments are agreed to have an optimum life-cycle planning. Nowadays, attention and importance is given to the discipline of Services, primarily to address questions of quality, such as customer interruptions, restoration times and power quality (avoidance of voltage sags, harmonics, etc.). Furthermore, the running costs of the network have also come under the spotlight [3]. III. ASSET MANAGEMENT SYSTEM STRUCTURE From the top of the hierarchy, emphasized by the Organization Strategy down to the individual assets and their day-to-day activities, PAS 55 gives clear alignment between the Organizations’ vision/aspirations and the assets/asset systems’ capabilities as depicted in figure-5 below [2]. Fig. 5. Planning & implementation elements of asset management system [2] At the core business of Asset Management, PAS 55 outlines what to do, but not how to do it. It is more like a check-sheet! The key elements for the preparation of the Asset Management Policy, Strategy, Objectives, and Plans are outlined as below: For Asset Management Policy:  Stipulates principles & mandated requirements for control of asset management.  Derived from & consistent with Organizational Strategic Plan (OSP).  Consistent with other Organizational Policies & Risk Management framework.  Complies with stakeholder requirements.  Committed to continual improvement.  Provides framework for:  Development & implementation of Asset Management Strategy.  Setting Asset Management Objectives.  Documented, implemented, maintained & communicated to all stakeholders.  Reviewed periodically. From the content perspective, Asset Management Policy might be produced in two parts:  Internal:  Detailed,  Contains confidential parts.  External (for stakeholders):  Summarized,
  5. 5. 4  Contains non-confidential parts. As per Figure-5 above, life cycle activities contains a term called functional policies, which unlike the normal policy, contains specific processes/activities and provides direction and control. Likewise, there can be functional strategy & functional objectives. For Asset Management Strategy:  Long term optimized approach, with time horizon equivalent to OSP.  Derived from & consistent with:  Asset Management Policy.  OSP.  Considers life-cycle management requirements of assets.  Accountable for:  Asset related risks,  Asset systems criticalities.  Identify current & future function, performance & condition of critical assets.  Communicated & reviewed. For Asset Management Objectives:  Specific & measurable outcome from:  Asset systems to implement Asset Management Policy & Strategy.  Asset Management Systems.  Derived from & consistent with AM Strategy.  Detailed & measurable level of performance of the assets.  Considers legal, regulatory & statutory requirements.  Accountable for:  Stakeholder & financial expectations,  Operational & business requirements,  Risks.  Improves on Asset Management practices, tools & technologies.  Communicated & reviewed. For Asset Management Plans:  A document(s) which specifies:  Activities & Responsibilities,  Resources & Timescales; required to implement Asset Management Strategy & deliver Asset Management Objectives.  Applied on each phase of Asset life cycle planning, i.e.:  Acquisition (construction, procurement, modification, designing or commissioning).  Utilization.  Maintenance (inspection, Condition Monitoring, testing, repairing, refurbishment and life extension).  Disposal.  Documented & maintained. Asset Management enablers is yet another key terminology utilized in PAS 55, of which can be any one of the below:  Supportive systems,  Procedures,  Processes,  Activities,  Resources. Asset Management enablers and controls ensures the viability of Asset Management Policy & Strategy and their consistency with the Organizational Strategic Plan. Further it ensures that the Asset risks are identified, assessed & controlled. Like other Asset Management documents, this should also be communicated & maintained. An effective, step by step, implementation of the PAS 55 is depicted in Figure-6 below [2], in which it follows the PDCA management framework (Plan-Do-Check-Act). This framework was adopted by DEWA under the Integrated Management Systems (IMS). Fig. 6. Structure of PAS 55-1:2008 [2] IV. CHANGE MANAGEMENT APPROACH The approach of Change Management in any organization is a challenging yet rewarding practice, as it will improve on many aspects related to operational & managerial levels. From the perspective of PAS 55, change management assesses & considers the below [2]:  Revising the organization holistically, including:  Structure,  Roles,  Responsibilities.  Revising the Asset Management, including:  Policy,  Strategy,  Objectives,  Plans,  Processes/Procedures.  Introducing:  New Assets & Asset Systems,  New Technology,  New contractors & suppliers. As mentioned above introducing new technologies are part of change management, yet, introducing new technologies for the sake of mentioning that one is using technology is not sufficient to provide justification for change management. Careful and planned integration of technology with business
  6. 6. 5 processes and activities help drive performance improvement [4], thus, leading to proper change management practices. Change management cycle is elaborated in the below figure (figure-7) in which adoption should start from the senior management as to adopt the Asset Management practice [5] or to transform their existing practices to be in line with PAS55. Fig. 7. Change Management – A major enabler [5] V. PERFORMANCE & CONDITION MONITORING Asset Management is concerned primarily with Monitoring of performance related parameters & condition related parameters, of which they apply separately for: a) Performance Monitoring relates to the Asset Management Systems (i.e. to highlight non- conformities), while; b) Condition Monitoring relates to physical Assets (i.e. to highlight defects, deterioration, failures). Improvement feedbacks on Condition Monitoring practices will come from failure/defect investigations (refer Section VII below), to concentrate on the parameters or the equipments/part of equipments that are vulnerable to failure. Accordingly, several diagnostic methodologies are adopted for this purpose, in order to evaluate the healthiness of assets, like:  Partial Discharge detection,  Off-line Partial Discharge & tan delta (for Cables),  Ultra-Sonic Discharge detection,  Temperature/Thermal trending, The above might be incorporated for early detection of deterioration/defect, and trending the parameters obtained to analyze the existence of any abnormal patterns that indicates failure, thus preventing/reducing their chances. Trending studies and building a consistent criterion for condition assessment is a vital task for Asset Managers. Condition Monitoring practices once adopted can improve on the clearance of most critical defects and can assist in the avoidance of critical asset failures. Seeking new technologies in this aspect will help many Asset Managers in the positive improvement of Asset condition & performance. The figure below (figure-8) highlights one of the Condition Monitoring practices done through thermal imaging. (a) (b) Fig. 8. (a) Normal image of 11kV Oil type Distribution Transformer, (b) Infrared Thermal image of the same To monitor any parameter we have to have KPIs (Key Performance Indicators), and these might be:  Leading Performance Indicators (+): Wherein it can give us early alarm for non-compliance of monitored parameter.  Lagging Performance Indicators (-): Wherein it indicates the actual achievement (i.e. number of incidents/failures- AIR, number of consumers affected, duration to restore supply-CML, duration of repair work-MTTR, etc.). Leading Performance Indicators assist us in taking proactive measures (preventive in nature), and Lagging Performance Indicators assist us in taking reactive measures (corrective in nature). It is thus of great importance to measure these KPIs, and record them to measure actual performance against plan [6]. This is required for future analysis and to be able to follow-up all corrective and preventive measures which eventually serves for the continual improvement initiatives. VI. RISK MANAGEMENT For any organization it is essential to identify the risks and assess them according to their core business objectives. After this they should establish a proper risk management framework in which it will outline the methodology to tackle them. At the identification/assessment stage we shall be able to
  7. 7. 6 identify risks related to:  Physical Assets failures (i.e. functional failures, ageing, damage, terrorism acts, etc.),  Operational related risks (i.e. level of control, human actions, performance monitoring, safety, etc.),  Environmental related risks (i.e. wind storm, earthquake, flood, etc.)  Scarcity of external supplies/services (e.g. spare parts.  Stakeholder requirements (e.g. regulatory).  Life-Cycle related risks (e.g. maintenance vs. replacement decisions). At the methodology stage, we shall consider the below in the formulation of the framework:  To be proportionate with the risks identified.  Be defined (i.e. scope, nature, criticality, timing), and thus allow for proactive measures rather than reactive ones.  Assessed properly for identifying any changes or cascading of the risk.  Risks to be classified in such way that we identify which risks we need to, either; control, eliminate or avoid in the first place.  Risks handled should be up to the level of our capabilities.  The methodology should be monitored for its three key elements: implementation, effectiveness, and timeliness. An outcome of proper application of Risk Management is a contingency plan, wherein an organization will identify the risks and come up with most applicable scenarios of crisis that they might encounter and put an equivalent contingency plan to mitigate them, and control the consequences as much as possible. For that, any organization should have:  An established plan/procedure to be implemented in case of crisis.  Segregation between Assets related risks from activities related risks.  Segregation between actions related to mitigation of crisis to those related to response to crisis.  Competent & trained personnel in contingency planning & crisis management.  List of stakeholders affected or required for response on crisis.  Contacts of relevant personnel, services, external agencies, etc. required for action.  Resources location & availability.  Communication hierarchy.  A recording/reporting team. VII. INVESTIGATION Any Asset is vulnerable to failure during the utilization period of the life cycle or at its expected end-of-life, and thus comes the importance of having an investigation process or procedure in place to take proactive actions to mitigate any failure or incident or non-conformity. Root-Cause Analysis (RCA) is essential to tackle the above situations, in which it will highlight all preventive measures that will be taken and consider the recommendations that are most relevant to control & improve Asset conditions and the Asset Management Systems in practice. In an asset intensive organizations, such as electrical utilities, RCA is required to provide on-time and credible remedial & preventive measures that will serve the decision making / improvements in favor of providing reliable and uninterrupted supply of electricity through proper asset life cycle management. RCA is done based on good judgment of the facts collected from site of failure, system sequence of events, protection data, etc. If confidence is high on the RCA results, then most of the preventive & corrective measures produced from these studies will be beneficial in reduction of failures or non- conformities. System performance and KPIs will indicate the improvements seen in the above as a measure. The figure below highlights one of the consequences of cable termination related failures where an extensive damage is seen in the cable compartment and total shutdown of the whole bus bar was a cascading-effect, leading to an interruption of 300 consumers. Fig. 9. Failure of 11kV Cable termination Investigation findings should be communicated to all relevant stakeholders with the findings and the preventive & Corrective actions taken/to-be-taken. Most importantly is the feedback cycle of the investigation findings towards the improvement of the Condition Monitoring tasks (refer Section “V” above). As it will serve to highlight the failure root-cause, thus assisting the Condition Monitoring groups to focus or improve on the detection of such causes (or parts of the equipment). Based on failure investigations, many opt-to-fail assets were safeguarded and proactive measures were taken to avoid the extensive damages that might be incurred if failure took place. Figure-10 below highlights one case of 11kV cable termination in which it was Condition Monitored at an earlier stage and shutdown was taken for only one panel for rectifying the defect observed. Unless this was done, a possible failure would have taken place, and the consequences or cascading effects might be more devastating.
  8. 8. 7 Fig. 10. Early detected cable termination abnormality VIII. CONCLUSION Imagine a case of an Asset which fails at a certain point of time, at which you as an Asset Owner/Manager/Operator discover that it was missed from your asset register, or was never Condition Monitored! This implies that Asset Management is an essential component of the structure of any organization. PAS 55 is a check-sheet for the optimum Asset Management practices, giving organizations guidelines on balancing Asset Life cycle in view of cost, performance & risk. Figure-11 below depicts the urging need for having an optimized life cycle planning for our assets in an equiangular triangle, in case we will have a sharp edge (acute angle) towards any one of the ends (whether cost, risk or performance) then we will be either: 1. Over-spending on maintaining or replacing our assets (cost pillar), or 2. Over-stressing our assets with overloads, failures, and risking in OH&S (risk pillar), or 3. Exceeding performance expectations to satisfy stakeholders blindly (performance pillar). Fig. 11. Optimization of cost, risk and performance to get a balanced life- cycle ISO 55,000 is an upcoming standard, which is being out- looked now for the optimized Asset Management which is planned for publication by February 2014. This shall be a continuation to the PAS55 with a highlight on how to get things done in view of Asset Management best practices. I. ACKNOWLEDGMENT The authors gratefully acknowledge the contributions and efforts of the Asset Management team which assisted in enlightening the way forward in the preparation of this paper. Further would like to extend the appreciation to higher management represented by our leader and role model Mr. Saeed Al-Tayer (MD&CEO) and Mr. Mohammed Al-Suwaidi (Vice President of Distribution Maintenance). The above work wouldn’t have been accomplished without blessings from Allah the most graceful and the support of our families and their patience on the delayed working hours and missing many weekends from being attached to them. II. REFERENCES [1] His Highness Sheikh Mohammed Bin Rashid Al-Maktoum, My Vision - Challenges in the Race for Excellence, Dubai: Motivate Publishing, 2006. [2] PAS 55-1: Asset Management, Part 1: Specification for the optimized management of physical assets: British Standards Institution, 2008. [3] R.P Hoskins, A.T. Brint, and G. Strbac, "A structured approach to Asset Management within the electricity industry," Nov. 1998. [4] S. Scott, “Asset Management: Measuring Best Practices, Performance,” Electric Light and Power; Jul/Aug 2009; 87, 4; ProQuest. [5] Amit Anand, “Enterprise wide Asset Management transformation in the Middle East,” presented at the 1st Government Asset Management Conference. Dubai, UAE, 2012. [6] Martin Osborn, "Practical Application of PAS55 in the water sector and lessons for other sectors," presented at the 1st Government Asset Management Conference. Dubai, UAE, 2012. III. BIOGRAPHIES Matar Al-Mehairi, a member of IAM, UK. He is holding a Higher Diploma in Mechanical Eng. from HCT-Dubai, Bachelor of Engineering Management from HCT-Dubai, Master in Public Administration from DSG-Dubai in cooperation with Harvard Kennedy School, Gov. Leader of Sheikh Mohammad Bin Rashed Leadership Program and currently pursuing EMBA from HCT-Dubai. His employment experience includes Distribution Operation & Maintenance fields in Electric utility (Dubai Electricity & Water Authority), joined DEWA in 1999 and presently working as a Sr. Manager Asset Management Department under Distribution Power Division with wide range of experience in the Electrical & Mechanical fields as well as Management & Leadership Skills. His skills include Strategic Thinking & Analysis, Knowledge Management, etc. He already initiated to bring all DM Department activities in compliance with PAS55, then entire Distribution Power Division. (Email: Sharif Al-Batayneh, a member of the Institute of Electrical and Electronics Engineers (IEEE). He is holding a B.Sc. in Electrical & Electronics Engineering from the American University of Sharjah (Fall 2003). His employment experience included Distribution Operation & Maintenance fields in Electric utility (Dubai Electricity & Water Authority) as he joined first in 2004 as an Engineer in Distribution Operation Planning, then moved to Distribution Operation Studies in 2006 as a Senior Engineer. Since 2009 he was appointed as an Assistant Manager in Asset Management Department under Distribution Power Division and looking mainly after the failures of the Distribution Network Assets. (Email: