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  1. 1. Version 2.0 Martin Grey 1 March 2010 Asset Management Topic Strategy Summary March 2010 Current Position Ongoing Work Position at Strategy II The current strategy of The preferred future NDA It is anticipated that a revised individual approaches is being strategy is being confirmed strategy will be approved and implemented by SLCs be implemented
  2. 2. Asset Management Related documents: Asset Management Strategy – August 2009 Background Securing efficient and effective management of assets is a duty placed on the NDA through the Energy Act 2004 as owner of the assets. UK Treasury published expectations for the management of assets through their “Managing Public Money” advice document. The SLC’s are bound to operate the facilities under their control to an agreed standard of public and employee safety, security and environmental protection. The NDA has contracts with the SLCs to meet these requirements through management of the assets. The effective and efficient management of assets across the NDA estate is critical to delivery of the Decommissioning and Clean Up mission. Utilising and demonstrating industry good practice in asset management is essential to provide confidence to the NDA and key stakeholders that risks are being managed, and value for money is being achieved. Implementing a consistent approach across the estate aligns with industry good practice and allows the NDA to work efficiently in assuring programme delivery. Topic Strategy scope and boundaries This strategy covers all physical assets owned by the NDA with the exception of nuclear materials. The strategy scope is to implement asset management good industry practice across the NDA (NDA and SLCs) estate and hence secure asset performance and to embed and sustain this into the future. Topic Strategy objective Secure NDA asset performance in order to enable safe and effective delivery of the Decommissioning and Clean Up mission. Topic Strategy Interfaces As a critical enabler the Asset Management Strategy interfaces at implementation level with all the other Topic Strategies. In particular it has a strong interface with the following: • Decommissioning and clean-up because it could affect plans and programmes. • Business optimisation theme because it can affect plant/facility and infrastructure performance. Topic Strategy credible options The strategic options relating to asset management are: 1. Maintain the current position, whereby the NDA, its subsidiaries and contractors apply individual approaches to asset management. 2. Develop NDA asset management standards from scratch. 3. Adopt a recognised asset management standard such as the Publicly Available Specification PAS-55. Option 3 is preferred as the most credible and cost effective solution. Having selected PAS- 55 as the industry good practice standard for asset management, implementation is proceeding by: • Identifying and improving asset management assessed against PAS-55. • Using a risk based approach to identifying assets critical to NDA mission and implementing costs effective and fit for purpose improvements where required. Asset Management 2 Topic Strategy Summary – March 2010
  3. 3. Asset Management Current Topic Strategy Despite the lack of a commonly applied standard for asset management across the NDA estate, the SLCs are currently managing their assets within inherited regimes whist responding to NDA’s call to change. Strategy maturity and risks The preferred strategic option is mature because similar strategies have been implemented by other organisations and the requirements to successfully manage such strategies have been benchmarked and are well understood. The programme of work behind the strategy is well developed and already well into implementation in conjunction with the SLCs and regulators. However there are a large number of unknowns at this time due to a number of factors such as asset management maturity and asset risk. This presents some significant challenges to successfully implementing the change and makes predicting the magnitude of effort required to make the necessary changes difficult before the initial benchmarking work (organisational maturity against PAS-55 and asset performance and condition) is completed. The primary risks are; • potential for critical asset failure due to asset condition • uncertain cost impact due to unrevealed asset condition and hence affordability within current funding constraints. Stakeholders and engagement to date The preferred strategy has been approved by NDA. The strategy has been discussed with SLCs, NII, EA, SEPA, DfT and OCNS with no significant issues identified. It was also presented to key stakeholders and discussed at the Strategy Development and Delivery Group meeting held in September 2009 and NSG in November 2009 prior to NDA approval. Forthcoming stakeholder engagement A joint regulator working group will continue to discuss progress with the Strategy. The remaining stakeholder engagement will take place through the consultation process prior to issue for public consultation, then in response to issues that arise until the Strategy is published in April 2011. Position at Strategy II The preferred strategy will continue to be implemented across our estate with progress reported in Strategy II. Summary position The preferred strategy is at Stage D in the SMS. Asset Management 3 Topic Strategy Summary – March 2010
  4. 4. Asset Management For more information on stages of strategy development, see the Strategy Management System Short Guide available at: Asset Management 4 Topic Strategy Summary – March 2010