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KBC IoE Webinar - ISO 55000 - Asset Management


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During this free webinar, KBC RAM expert will discuss the adaptation of ISO 55000 for organisations to enhance your Asset Management Systems & improve operational and maintenance reliability performance.

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KBC IoE Webinar - ISO 55000 - Asset Management

  1. 1. © 2015 KBC Advanced Technologies plc. All Rights Reserved. ISO 55000 – Asset Management A Partnership Strategy for Operational Excellence KBC Webinar 18 September 2015
  2. 2. Our Speaker Today 8/28/2015 PROPRIETARY INFORMATION 4
  3. 3. Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to the organisation > How KBC can help companies achieve certification? 8/28/2015 5PROPRIETARY INFORMATION
  4. 4. KBC Corporate Profile Leading Independent Oil and Gas Consulting and Technology Company KBC Office Locations People Methodologies Technology and Tools Our Advantage Traditional Industry Focus 8/28/2015 6PROPRIETARY INFORMATION
  5. 5. Global Client Base 8/28/2015 7 7 Aramco Asia, China Bangchak Refinery, Thailand Binh Son Refinery, Vietnam BP, Australia Caltex, Australia CNOOC, China Cosmo Oil, Japan Formosa Petrochem, Taiwan FREP, China Fuji Oil, Japan Hindustan Petroleum Corp. Ltd, India Idemitsu Kosan, Japan Indian Oil Corporation, India InterOil, PNG IRPC, Thailand JX Nippon Oil & Energy, Japan Mitsui & Co, Japan Pertamina, Indonesia PetroChina, China Petron, Malaysia and Philippines Petronas, Malaysia PTT, Thailand PTTES, Thailand PTTGC, Thailand Samsung Total, Korea Santos, Australia Siam Cement Group, Thailand Sinopec, China SK Corporation, Korea S-Oil, Korea SPRC, Thailand Singapore Refining Co, Singapore Sumitomo Chemical, Japan Thaioil, Thailand TonenGeneral, Japan ADM , Europe BP- Nerefco, Netherlands ConocoPhillips, UK Engen, South Africa Essar Oil , UK GALP, Portugal Grupa Lotos, Poland Hellenic Petroleum, Greece Holborn Europa Raffinerie GmbH, Germany INA, Croatia Koch, Netherlands KPRL, Kenya Kuwait Europort, Netherlands Murphy Oil Corporation, UK Oil Planning Service, Africa Oman Oil RPI, Oman OMV Aktiengesellschaft, Austria PCK, Germany Petrogal, Portugal PetroPlus, France PetroSA, South Africa PKN Orlen, Germany Raffineria di Milazzo, Italy Rompetrol, Romania Sasol Synfuels Ltd, South Africa Slovneft, Russia Total, France Tupras, Turkey Vitol, UK Alon, USA Ancap, Uruguay BP, USA Coastal , USA ConocoPhillips, USA Ecopetrol (Reficar), Colombia El Paso, Aruba ENAP, USA Flint Hills Resources LP, USA Hess Oil Trading Company, USA Hovensa, St Croix Husky Energy, Canada Irving Oil, Canada Lyondell-Bassel, USA Lyondell-Citgo, USA Marathon, USA Mobil, USA National Oil Company, South America NCRA, USA Nova Chemicals Corporation, Canada Parkland Income Fund , Canada Pemex, Mexico Petrobras, Brazil Petro-Canada, Canada Petroecuador, Ecuador Refining Process Services, USA Rio Tinto, Americas Sinclair, USA Suncor, Canada Tesoro Refining & Marketing Co, USA Texaco, UK PROPRIETARY INFORMATION
  6. 6. Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to the organisation > How KBC can help companies achieve certification? 8/28/2015 8PROPRIETARY INFORMATION
  7. 7. ISO 55000 is Focused on Asset Management… Asset management (value adding focus) 1. Realise value throughout the asset’s life cycle stages 2. Coordinated asset-related decisions, plans, and activities 3. Risk based approach Asset management system 1. Set of interdependent elements of an organisation 2. Establishes asset management policy and objectives 3. Processes for the development, coordination, and control of asset activities over different life cycle stages 4. Aligned with the strategic goals of the organisation (organisational behaviour focus) ISO 55000 Asset Management Standard To provide a framework that specifies and links life-cycle asset decision making and actions to the strategic goals of the business. 8/28/2015 9PROPRIETARY INFORMATION
  8. 8. ..but looks beyond the physical asset 1. Asset management does not focus on the asset itself, but on the value that the asset provides to the organisation 2. Value can be tangible or intangible, financial or non-financial 3. At no point does ISO 55000 mandate the most reliable assets or the greatest level of productionSource: ISO 55000 It’s All About the Value Asset management system framework Managing the Organisation Asset Management Asset Management System Asset Portfolio Coordinated activity of an organisation to realise value from assets Set of interrelated or interacting elements to establish asset management policy, asset management objectives and processes to achieve those objectives Assets that are within the scope of the asset management system 8/28/2015 10PROPRIETARY INFORMATION
  9. 9. ISO 55000 8/28/2015 PROPRIETARY INFORMATION 11 Asset Management Overview Defines principles and terminology of an asset management system Asset Management System - Requirements Describes the elements of an asset management system Asset Management System - Application Provides “guidelines” for the design and operation of an asset management system ISO 55000 ISO 55001 ISO 55002
  10. 10. Content of Standard > Context of the organisation: Understanding the organisation, stakeholders and scope of the AMS > Leadership: Demonstration of leadership and commitment > Planning: Actions to address risk and opportunities for AMS > Support: Resources, competence, communication > Operation: Operational planning and control, MOC, outsourcing > Performance Evaluation: Monitoring, measurement, analysis and evaluation (audits and reviews) > Improvement: Non-conformity and corrective action, preventive action and continual improvement 8/28/2015 PROPRIETARY INFORMATION 12
  11. 11. ISO 55000 was launched in Jan/2014 2004 2010 2012 2014 1. UK Institute of Asset Management with British standards Institution developed PAS 55 2. First public specification for optimised management of physical assets 2008 3. PAS 55 updated 4. Developed by 50 organisations from 15 industry sectors in 10 countries 6. ISO 55000 formally launched 5. International Standards Organisation (ISO) accepts PAS 55 as the basis for development of the ISO 55000 series of international standards Evolution of the development of ISO 55000 8/28/2015 13PROPRIETARY INFORMATION
  12. 12. Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to the organisation > How KBC can help companies achieve certification? 8/28/2015 14PROPRIETARY INFORMATION
  13. 13. Drivers for Improved Asset Management Fukushima Nuclear Accident Event > Occurred on 11 March 2011 > Consequence: Nuclear meltdown of 3 out of 6 nuclear reactors > No fatalities but 300,000 people evacuated > Trigger events: magnitude 9.0 earthquake and tsunami Asset Management Findings > Plant was incapable of withstanding earthquake and tsunami > It failed to meet the most basic safety requirements, such as assessing the probability of damage, preparing for containing collateral damage from such a disaster, and developing evacuation plans 8/28/2015 15PROPRIETARY INFORMATION
  14. 14. Drivers for Improved Asset Management - cont’d Deepwater Horizon Oil Spill Event > Occurred on 20 April 2010 > Explosion and sinking of the Deepwater Horizon oil rig in the Gulf of Mexico > 11 people were never found > A sea-floor oil gusher flowed for 87 days totaling about 4.9 million barrels of crude oil > Fines = $4.5B; Criminal & civil settlements >$42.2B plus massive environmental impact Asset Management Findings > Defective cement on the well causing wellhead blowout > Series of cost-cutting decision and an insufficient safety system 8/28/2015 16PROPRIETARY INFORMATION
  15. 15. Texas City Refinery Explosion Event > Occurred March 23, 2005 > HC cloud explosion at the Isomerisation Process Unit > Killed 15 workers; 170 injured Asset Management Findings > HC originated from liquid overflow from the blowdown stack after overfilling and overheating of the tower contents. > Numerous technical and organisational failures at the refinery and within corporate BP 8/28/2015 17PROPRIETARY INFORMATION Drivers for Improved Asset Management - cont’d
  16. 16. Lac-Megantic Derailment Event > Occurred on July 6, 2013 > An unattended 74-car freight train carrying crude oil rolled down a hill and derailed > Result: file and explosion of multiple tank cars > 47 people died; more than 30 buildings destroyed Asset Management Findings > Identified 18 distinct causes and contributing factors, some are: − Mechanical problems not remedied − Independent air brakes leaked − Insufficient handbrake and improper test method − Train left unattended on hill − Weak safety culture 8/28/2015 18PROPRIETARY INFORMATION Drivers for Improved Asset Management - cont’d
  17. 17. 8/28/2015 19 Sayano-Shushenskaya Event > Occurred on 17 August 2009 > Capacity 6,400MW > Flooding of the engine & turbine rooms and two 711 MVA electric generators exploded > 76 people died > Equipment damage cost alone = $1.2B > Economic impact to Siberia Asset Management Findings > Postponed turbine maintenance while waiting for funding > Primarily caused by vibrations of turbine No. 2 which led to fatigue damage of the turbine mountings > The design life of the Unit 2 turbine was reported as 30 years by the manufacturer. On the date of the accident, the age of the Unit 2 turbine was 29 years and 10 months PROPRIETARY INFORMATION Drivers for Improved Asset Management - cont’d
  18. 18. Drivers of ISO 55000 adoption > Growing awareness of reputation risk due to prior major asset integrity failures > Opportunity to assess and enhance existing AMS > Public domain discussion suggests three further drivers of adoption − Regulatory agencies leveraging the standard for compliance purposes − Insurance risk / premium assessment − Interest by law firms given implications for M&A due diligence or legal liability Besides the business… Regulators, insurance and M&A-DD are other drivers for ISO 55000 8/28/2015 20PROPRIETARY INFORMATION
  19. 19. Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to the organisation > How KBC can help companies achieve certification? 8/28/2015 21PROPRIETARY INFORMATION
  20. 20. Are you ready for ISO 55000? 8/28/2015 22PROPRIETARY INFORMATION Getting started Implementation Certification Sustainability Find out about best practice asset management and why ISO 55000 makes good business sense Discover how to implement an asset management system and the benefits to your business Find out how independent certification and verification supports your asset management Make sure that your asset management system continues to deliver the best for your business • Self assessment • 2~3 week duration • Readiness audit • 4 ~ 8 weeks • Implementation Roadmap • 3 ~ 12 months • AMS value realization • 3rd Party certification (IAM certified bodies) • Periodic audits • Review of processes implementation 41 2 3 KBC Approach Sharing Goals: Enhancing client’s AMS Ensuring sustainable performance leading to ISO certification
  21. 21. Assessment Process A D C B 8/28/2015 23PROPRIETARY INFORMATION
  22. 22. Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to an organisation > How KBC can help companies achieve certification? 8/28/2015 24PROPRIETARY INFORMATION
  23. 23. Benefits A company’s asset management system provides a structured approach using best practice methodologies to manage the lifecycle of assets in achieving set reliability goals and > Reduced risks associated with ownership of assets – anything from unnecessary maintenance costs and inefficiency to accident prevention (explosions at gas plants for example) > Improved quality assurance for customers/regulators – where assets play a key role in the provision and quality of products and services > New business acquisition - stakeholders gain confidence from the knowledge that a strategy is in place to ensure assets meet the necessary safety and performance requirements > Supports international business growth – demonstrating that the requirements of an internationally recognised asset management system are being met 8/28/2015 25PROPRIETARY INFORMATION
  24. 24. Benefits/Cost Chart Potential benefits ~ 5 to 20% reduction of Maintenance Budget 8/28/2015 26PROPRIETARY INFORMATION TIME 15 ~ 20 Months 6000 5000 4000 3000 2000 1000 0 US$’000
  25. 25. Factors influencing benefits realisation > Starting point > Understanding of goals > Management commitment > Speed of implementing recommendations − Staff motivation − Capability and availability of staff 8/28/2015 27PROPRIETARY INFORMATION
  26. 26. Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to the organisation > How KBC can help companies achieve certification? 8/28/2015 28PROPRIETARY INFORMATION
  27. 27. KBC Operational Excellence 8/28/2015 29PROPRIETARY INFORMATION
  28. 28. ASSET MANAGEMENT Maintenance Strategy Program Design Implementation Plan KPIs & Stewardship Communication Organisation Risk Management Work Screening Prioritisation Planning & Scheduling Work Execution Improvements CMMS Optimisation TA Work scope Optimisation Execution & Planning Defect EliminationRCFA Tools & Training PM & PdM Plans Risked Based Inspection Critical Equipment Plans Asset Policies Best Practice Implementation Plan 8/28/2015 30PROPRIETARY INFORMATION