Cobre - Gestión de Activos – Guía para la aplicación de la norma 55001

Asset Management
Application Guide
for ISO 55001

International Copper Association (ICA)
Latin America
Av. Vitacura 2909, Oficina 303
Las Condes, Santiago
Chile
www.copperalliance.org
COPYRIGHT
© 2015 International Copper Association

NOTE OF CLARIFICATION
The document was originally created in Brazil, written in
Portuguese and translated into English.
Although this document has been prepared with due care, the ICA
and any other participating institution are not responsible for the
information and analysis herein presented, which shall be credited
directly to their authors.
This study does not restrain and nor does it exempts consultation
and full reading of the standard ISO 55000/1/2 of the ISO -
International Organization for Standardization and the British
specification PAS-55 (Publicly Available Specification number 55)
of the British Standards Institution [1].
Citations and references to the ISO 55000/1/2 and case studies
were authorized by their respective organizations and their
representatives in Brazil were the original texts were written.

Original Text in Portuguese Prepared by:
Marisa Zampolli
Revised and Supervised by:
Glycon Garcia Jr.
Contributors (authors of practical examples and annexes) in the order they appear in the document:
Alexandre Felix do Nascimento Ítalo
Claudio Caiani Spanó – Reliasoft Brasil
Rafael Schmitz Venturini de Barros – AES Tietê
Gilberto Martins Junior – Elektro Eletricidade e Serviços S.A.
Henrique Eduardo Pinto Diniz – CEMIG
Valéria Simões de Marco – Eletrobrás Eletronuclear S.A.
Paulo Marcio Nepomuceno de Sousa – CEMIG
Pedro Monteiro de Castro Souza – CEMIG
Henderson Saldonas da Silva
João Esmeraldo da Silva, Dr. - Fundação Gorceix - Departamento de Pesquisa e Educação Continuada
Jefferson Januário Mendes, Msc. - Instituto Federal Minas Gerais – Departamento de Engenharia de Produção
Ruben Antonio Llobell Solé, Dr. - Fundação Gorceix - Departamento de Pesquisa e Educação Continuada
DATASHEET

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Let’s talk a little about Standards: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Step 1: Plan the company asset management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
A. The Context of the Organization {4} . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
a. Understanding the organization and its context {4.1}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
b. Understanding the needs and expectations of stakeholders {4.2}. . . . . . . . . . . . . . . . . . . . . . . . 17
c. Determining the scope of the asset management system {4.3}. . . . . . . . . . . . . . . . . . . . . . . . . . 17
d. Determining the Asset Management System {4.4}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
B. Leadership {5} . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
a. Policy {5.2}. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
b. Organizational roles, responsibilities and authorities {5.3} . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
c. Criteria and definition of the asset portfolio to the management system -
Determination of the scope {4.3}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
• Critical Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
• Criteria for defining critical assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
d. Asset management system {4.4}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Step 2: Execute the asset management objectives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
A. SAMP – Strategic Asset Management Plan {6.2.2}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
a. The Asset Management Plans {6.2.2}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
B. Support {7}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
a. Resources {7.1}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
b. Competence {7.2}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
c. Awareness {7.3}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
d. Communication {7.4} . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
e. Information Requirements {7.5}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
f. Documented Information {7.6}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
g. Control of documented information {7.6.3}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
C. Operation: Project and Acquisition of Critical Assets {8} . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Practical example: Asset’s Acquisition by a Logistics Company [A]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
a. Analysis for introduction of new technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Practical example: Introduction of new technologies in the oil and gas industry [B]. . . . . . . . . . . . . . . . . . 31
CONTENTS

Step 3: Risk management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
A. Methodologies applied to risk management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
B. Actions to address risks and opportunities for the asset management system {6.1}. . . . . . . . . . . . . . . 36
C. Management of Change {8.2} . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
D. Outsourcing {8.3}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Step 4 Monitoring the operation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
A. Performance evaluation {9}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
B. Definition of indicators {9.1}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
a. Performance indicators or KPI´s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
b. Cost Indicators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
c. Risk indicators or KRI´s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
C. Internal audit {9.2}. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Step 5: Analyze the asset management system. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
A. Economic & Life Cycle Assessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
B. Calculation of the economic life of an asset and LCC analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Practical example: High Performance Compressor [C]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Step 6: Decisions making and seek of continuous improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
A. Analysis for technological modernization based on power efficiency. . . . . . . . .. . . . . . . . . . . . . . . . . . . . 53
Practical example: Electric Motors [D]. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Conclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Annexes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
1 – Case study AES Tietê – Preparing the SAMP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
2 – Case Study: Elektro - Asset Management Plan for the purchase of transformers . . . . . . . . . . . . . . . . . 65
3 – Case study: CEMIG – Application of Asset Management in Risk Assessment
of Connection Failures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
4 – Case Study: Eletronuclear Management Plans for Critical Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
5 – Case Study: CEMIG - Application of Asset Management in Call Center. . . . . . . . . . . . . . . . . . . . . . . . . . 72
6 – Case Study: Strategic Asset Acquisition Based on Risk Management. . . . . . . . . . .. . . . . . . . . . . . . . . . . . 79
7 – Case Study: Economic-financial results of asset management applications reliability
engineering in the implementation of capital projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
8 – Case Study: Implementation of the SAMP in a Mining Enterprise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
Acknowledgement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Executive Summary
10
Asset management is a cultural change in companies’
strategic planning that adds to the traditional vision
on products and clients the vision of assets and of the
value they are able to generate to the business.
For companies that are willing to seek international
performance standards within competitive markets,
asset management brings, from the context of the
organization, a new proposal to realize the strategic
objectives. This is accomplished by integrating all areas
of the organization, so that each one recognizes its
role and responsibilities in achieving value through the
organization assets.
The asset management practice implies an initial
reflection on the company’s positioning in the market,
on its long-term objectives, and on the expectations and
needs of stakeholders and how all these interact with
the company’s business.
We use to say that asset management marks the
beginning of a new era in business administration,
something to be practiced by those seeking business
excellence. Asset management is not limited to the
management of assets, but transcends the barrier of
operational limits to influence the business strategies.
Practicing asset management according to the rules
implies in following an international standard to obtain
value through the use of assets in order to obtain the
balance of performance, cost and risks.
The ISO 5500X standards, issued in 2014, bring to
organizations the challenge of quantifying their
efficiency in terms of risk. The balance between cost,
performance and risks can only be achieved through
asset management practices.
The ISO 5500X standards go beyond the universe of
the PAS-55 BSI published by the British Standards
Institution, which until then was the only reference to
physical asset’s management practices.
Themanagementsystemapproachtoassetmanagement
in the context of the ISO 55001 provides the necessary
requirements for the company’s management to favor
the asset management results, not only for the physical
assets, but all those that add value to the organization.
In asset-intensive companies, whose business is based
on the operation of large physical assets, the standards
bring an innovation to the life of assets, no longer
limited to the period between acquisition and disposal,
but understood from the asset specification to the
liabilities remaining after decommissioning.
The management of physical assets results in a clear
policy of renewing assets that must be replaced not only
when they are irreparably damaged, but also when:
a) Operating and/or maintenance costs over the
remaining life of the asset exceeds the replacement
cost;
b) There is an imminent risk failure of the asset;
c) The impact of a likely failure exceeds the
replacement cost;;
d) A probable failure may compromise the reliability
and security of the system and of people;
e) The assets have become obsolete and inefficient
to operate and maintain the business;
f) Gains by replacing imply improvement of
indicators of people safety, of the environment and
of the company performance.
Decision making for anticipated replacement of assets
should be based on accurate information on their
conditions, ensuring through analysis and diagnosis
the best return on invested capital, improved operating
performance, and lower risks to the organization.
To achieve the strategic objectives, the plans for assets
maintenance, reform and renewal shall be part of the
annual budget so that the necessary resources are
appropriate in operating and investment budgets,
ensuring that the long-term planning is modeled to
contribute to business strengthening.
The adoption of these practices by companies brings
results in short, medium and long-term. These results
are seen in improvement of technical, economic and
financial performance; reduction of risks and liabilities;
provision of transparency, security and traceability of
investments; besides favoring investment funding and
distribution over time.
The International Copper Association, through this
publication, contributes to companies, especially in the
power sector, to visualize how the successful practice of
asset management can leverage businesses efficiently
and sustainably over time.

11
Introduction
This document is not intended to prescribe approaches, methods or mandatory tools, but seeks to clarify
what is proposed in the current standards by giving examples, adopted practices and tools used by
companies, not only the energy sector but also other of industries and other service sectors.
The proposal is to draw a path or a trail that enables the basic vision for a company to deploy an asset
management system through stages or the described “steps” based on the PDCA (Plan, Do, Check, & Act)
cycle that is the foundation of the management system. Thus, the six steps proposed enable the structuring
of the management system for asset management of any asset-intensive company. The proposed steps are
in line with the standards and stages of the PDCA cycle.
Figure 1: PDCA Cycle and Asset Management

Let’s talk a little about Standards:
The series of of international standards is the result of work carried out under the ISO TC 251 international committee.
The series of standards consists of 3 separate standards: ISO 55000, ISO 55001 & ISO 55002.
The standard ISO 55001 gives the requirements of a management system for asset management, which from now
on will be referred to only as asset management system. This standard is related to the ISO 55000 standard, which
introduces terminology and with the ISO 55002 standard that provides guidance on how to interpret the ISO 55001
standard within a specific environment or for certain types of assets.
55000
Overview, principles
and terminology
• Leadership • Policy • Planning
• Resources • Operation • Evaluation
• Monitoring • Critical Analysis • Continuous Improvement
55001
Requirements
of management
systems
55002
Guidelines for
application of the
55001
12
Figure 2: Standards and content

The series of standards provides the definitions of what shall be done, but does not tell “how to do.” This is why the
search for practical examples is a constant among companies intending the adoption of the standards and further
certification.
In this document we will use the symbols “{}” to reference the number of the corresponding item in the ISO
55000/1/2 standards.
The standards are also structured according to the PDCA cycle (plan, develop or execute, verify and take action to
improve).
In this document, we will also follow the structure of the standards, through structured steps according to the PDCA.
The steps described in following are a basic proposal for a company of any size to adapt itself to what is required by
the Standards and to get value through asset management.
Step 1 refers to system planning corresponding to the P phase of the PDCA cycle. The steps 2 and 3 relate to the
system development as the D phase of the PDCA cycle. Steps 4 and 5 represent the verification stage of the PDCA
cycle and step 6 refers to Actions to improve the system as the stage of the PDCA cycle.
Figure 3: Proposed steps
13
Step 1
Planning
Step 2
Execution
Step 4
Monitoring
Step 5
Analyze
Step 6
Make a decision
and seek
improvement
Step 3
Manage Risks

PLAN THE COMPANY ASSET MANAGEMENT
STEP 1

In the first step, the whole planning for implementation of the asset management system will be addressed, including
the required knowledge and needed tools.
For the planning to be successful, it will be necessary to deepen some basic definitions mentioned in the ISO 55000
standards:
• Assets {3.2.1}
According to the standards, an asset is an item, something or an entity that has actual or potential value for an
organization. This value can be tangible or intangible, financial or non-financial, and includes consideration of risk
and liabilities. It can be positive or negative, at different stages of the asset life.
Physical assets usually refer to equipment, inventory and properties owned by the organization. Physical assets are
the opposite of intangible assets that are non-physical assets, and are such as contracts, brands, digital assets, use
rights, licenses, intellectual property rights, reputation or agreements.
A grouping of assets referred to as an assets system may also be considered as an asset.
• Asset Management {3.3.1}
According to the standard, asset management is the coordinated activity of an organization to realize value from
assets, what involves a balancing of costs, risks and performance.
• Asset management system {3.4.3}
The function of a management system for asset management is to establish the asset management policy and the
asset management objectives. The asset management system is a subset of asset management.
The four principles of Asset Management described in the standard are:
Assets that are within
the scope of the asset
management system
Set of interrelated or
interacting elements to
establish asset management,
policy, asset management,
objectives and processes to
achieve those obectives
Coordinated activity of an
organization to realize
value from assets
Figure 4: Relations between key terms in asset management
Asset Portfolio
Asset
Management System
Asset
Management
Managing the
Organization
Assets exist to
provide value to the
organization and to
stakeholders;
Asset Management
transforms the strategic
intent into tasks,
decisions, technical and
financial activities;
The leadership and the
workplace culture are
determinants to the
perceived value;
Asset management
provides assurance that
the assets will meet and
perform their function.
1 2 3 4
15

A. The Context of the Organization {4}
a. Understanding the organization and its context {4.1}
Before start-up, the company normally establishes the scope of the asset management system and its breadth
within the organization.
A team is designated to execute the process in the organization performing specific roles. In the classic management
form, there is a leader (with full autonomy to conduct the process and communicate with the top management) and
a team that is usually divided into three distinct roles: the asset owners (who define the corporate objectives through
financial, technical and risk criteria), the asset managers (who apply the defined specifications of a project or asset
planning) and the service providers (who execute the project and provide the results or information).
The initial preparation requires from the leader and from the team a deepening into the company’s business. The
standards consider that the asset management system must address six aspects of an organization: the internal
and external environment, their planning processes, support processes, operational processes, the performance
evaluation processes and ultimately the continuous improvement processes.
At this stage, some questions need to be answered: What creates value for the company? What is the focus of its
business? What is expected as a result?
All external and internal issues that affect both the realization of organizational objectives and the asset management
system shall be identified.
In the ISO 55002 is listed types of issues to be evaluated. At this stage, it is needed to determine if the asset
management system is aligned and consistent with the organizational and strategic objectives, knowing in detail the
organization’s strategic plan in the short, medium and long term.
A
Figure 5: Overview and interrelations of the asset management system
Organization Management System
Organizational objectives
Requirements of
stakeholders
Asset Management
System
Asset management
scope and strategy
Organizational plan
16

b. Understanding the needs and expectations of stakeholders {4.2}
c. Determining the scope of the asset management system {4.3}
d. Determining the Asset Management System {4.4}
Firstofall,itisrecommendedtoidentifystakeholders,includinginternalandexternalstakeholdersoftheorganization.
After identification of the parties, their expectations and intrinsic requirements are related to the asset management
system. It is important to consider how they interact with the system, and their goals.
The requirements of stakeholders are also considered for registration and documentation of financial and non-
financial information relevant to asset management. At this time, the criteria for decision-making are determined,
as well as the roles and responsibilities of each member of the asset management team.
Within the scope of the asset management system are the limits and reach of the system, which shall be documented.
Some sort of list of assets shall exist, which will be handled by the asset management system, and these assets will
form the considered portfolio. The unlisted assets will remain out of the scope and will not be treated by the system.
The application requires full involvement, comprising the resources and interactions of the whole organization related
with asset management in its broadest sense. In addition to covering internal processes and functions, including
interfacing with external suppliers, outsourced services, regulators and national and international considerations,
the scope includes geographical locations and organizational involvement periods. Probably, the scope of the asset
management system will be a written document with various relevant subsections and will certainly be the object of
definition by internal and external audits of the asset management system.
A system is a set of processes. Every process used in asset management must be defined and specified. Thus, a
description of how the asset management system is established, applied, maintained and improved is required.
At this stage, a critical analysis of existing processes against the requirements of the standards is carried out. This
analysis will determine which areas need to be developed to support the asset management system.
Every process used in asset management must be defined and specified. An alternative is to draw a flow graph of
each process, with all of its interactions, considering in practice procedures on how to do correctly each phase and
step of each process.
Figure 6: Processes of an asset management system
Asset Management
System
Stakeholders needs
and expectation
Organizational plan
and objectives
Strategic Assets
Management Plan
(SAMP)
Asset Management
Plan
Asset Management
Policy
17

Leadership {5}
Leadership and organizational culture are key factors in obtaining value.
The top management has the natural leaders of asset management of an organization, who are responsible for
quality and safety, and who will be responsible for asset management. The top management sets the business vision
and strategy, aligns the organization and provides the necessary resources for the objectives’ achievement. The top
management places people in leadership roles, guiding and supporting them.
The leadership influences how the organization performs its role and creates the organizational culture. In this
respect, the influence occurs by example and attitudes.
B
Figure 7: Leadership process in asset management
Definition of the executive sponsor
Identification of the leading team
Forming work groups for deployment
Scope definition
Preparation of the strategic plan
Preparation of management plans
Allocation of resources
18

a. Policy {5.2}
• Clearly express the principles to be applied,
such as the organization’s approach to the
health and safety of its employees, the
environment and sustainable development;
• Include a commitment to continual
improvement of asset management and the
asset management performance;
• Be documented, put into practice and
maintained;
• Be communicated to all stakeholders,
including contracted service providers. There is
a requirement that these shall be informed of
their obligations related to the organization’s
asset management policy;
• Be reviewed periodically to ensure that it
remains relevant and consistent with the
organization and with the strategic plan.
The asset management policy is a short statement that sets out the principles by which the organization
intends to apply asset management to achieve its organizational objectives. The standard recommends that the
asset management policy is a formal statement of support from top management, which thus demonstrates its
commitment to asset management.
The process of elaboration of the asset management policy is complex it must involve the company vision and
mission, as well as a strategic analysis of its situation in the market.
In general, there are some rules that the policy must meet:
• It shall be derived from and compatible
with the organizational strategic plan, i.e.,
define the high strategic value of assets and
how they fit into the mission and goals of the
organization;
• Be adequate to the nature and scale of the
organization assets and operations;
• Be coherent with other organizational
policies;
• Be consistent with the overall risk
management of the organization, i.e., guide
how decisions should be taken;
• Provide a framework that allows the strategy,
objectives and asset management plans to be
produced and implemented;
• Be commited to comply with the law,
regulations and standards applicable to the
organization;
19
The policy may not be presented in an exclusive document; it may be contained within other organizational
policies, or the organization management documents.

c. Criteria and definition of the asset portfolio to the management system - Determination of the scope {4.3}
When defining the scope of the asset management system, the portfolio or group of assets that are within
the scope shall also be defined.
These assets are typically classified by the risks and costs associated with them as critical and non-critical
assets:
Starting from the premise that asset is what creates value for the organization we can consider critical the ones that
generate the greater value within the established scope.
We can also say that for an asset can be considered critical or not depends on the importance of this element and
by the consequences of its absence or failure. In some situations the same type of asset can be critical and in others
not, depending on the application and the backup conditions in case of a failure.
The conclusion that an asset is critical, or non-critical, seems pretty simple and easy to understand when you know
the context of the organization and its scope.
In short, it can be said that the characteristic of an asset being critical or not is directly proportional to the role this
plays in the company’s business. Therefore, we can have assets that in certain companies are considered critical and
in others are non-critical.
Classifying the assets as critical and non-critical is an important task for asset management, as critical assets will
necessarily be monitored in more detail.
Assets grouped into critical and non-critical shall, in a general manner, be reviewed, monitored, and have their
performance evaluated, individually and in groups.
Each asset in the system has a specific function and often can be considered non-redundant.
Example:
In the particular case of power companies, critical assets for each segment would be:
CRITICAL ASSETS
20
Figure 8 Assignments and expected results of the asset management team
Assignments of the Asset Management Team
Define
strategies
(lines
of action)
Define
operational
policy
Prioritize
investments
Manage
internal and
external
suppliers
Set up
services
Know the
assets and their
life cycle
Expected Results
Optimization of
performance and cost
involved in the assets’
life cycle
Maximizing returns on
investments
with assets
Satisfaction of customers
and shareholders
Greater value for the
company and for
stakeholders
b. Organizational roles, responsibilities and authorities {5.3}
A team is assigned to lead the process within the organization by performing specific
roles. Each role and responsibilities should be agreed and disclosed with everyone
involved, ensuring the transparency of the process and the authority of each one.

At first glance, the critical assets to maintain power generation would be the generators
and turbines, but these are not the only responsible for creating value to the core business
of a power generation company: there are also transformers, conductor cables, protective
equipment, control and supervision and the source of generation, as water sources for
hydroelectric generation.
If in a generating unit, there is an incident involving lightning and the simple lightning rod
does not function properly or the grounding system does not protect the equipment; the
loss for the company will be large, as if there is no water available in dams and springs; the
company’s business will be fully committed.
Power transmission through lines and towers has as critical assets not only the conductors,
but also the substations, the protection system, the control and supervision plus the
towers, switchgear systems and transformers.
Similarly to what happens with generation companies, if a disconnect switch does not
operate at the right time; the failure can disable a line and the consequences for the
company can be many.
GENERATION
TRANSMISSION
The criteria for defining critical assets depend on the company’s business and organizational strategic plan. In
general, some are used by all companies:
One of the requirements of the ISO 55001 standard is that the company shall establish, implement, maintain and
continuously improve the asset management system, including all the processes required to support the system and
its interactions. In this way, the whole planning will be structured within a document called SAMP - Strategic Asset
Management Plan. Further details on the SAMP preparation will be provided in Step 2 - Execution
Value generated by the
asset in the business
Risks involved in
losing the asset
Non-earned profits by
the failure or absence
Maintenance and
replacement costs
A
C
B
D
CRITERIA FOR DEFINING CRITICAL ASSETS
d. Asset management system {4.4}
Distributors are responsible for making the generated and transmitted power reach the
end users. The main assets of the distribution business are: transformers, cables, protection
systems, control and supervision, meters and maneuvering systems.
In this case, the failure of a power transformer in the substation can be as disastrous as a
failure of a circuit breaker or an insulator; this will depend on the role of each component
in the power distribution activity, and on the load being fed.
DISTRIBUTION
21

EXECUTE THE ASSET MANAGEMENT OBJECTIVES
STEP 2

In a company, the asset management shall be driven by objectives aligned to the strategic planning and considered
in the planning stage.
The asset management objectives must be clear and consistent, as indicated by the letters of the word “SMART”:
The asset management objectives are specified and derived as a part of the SAMP (Strategic Asset Management Plan)
to be deployed in the management plans of assets, which by their turn are aligned to, and derived from the scope.
Typical issues, amongst others, that are addressed by objectives include the following:
“Specific”
“Achievable”
“Realistic”
“Time-based”
“Measurable”
— total cost of ownership;
— net present value;
— return on capital employed;
— performance vs. planning;
— certification of the asset management system, or assessment of the asset management maturity (by benchmarking);
— customer satisfaction scores;
— survey results for society or for reputation;
— environmental impact, e.g. carbon costs;
— level of service;
IN ASSET MANAGEMENT:
S
A
M
R
T
A
23
— return on investment (or return on invested capital, or return on asset);
FOR GROUPS OF ASSETS:B
— asset system availability;
— asset system performance (e.g.: uptime, efficiency);
— unit cost of product or service;
FOR ASSET SYSTEMS:C
— reliability (mean time/distance between failures);
— asset condition, performance, or health score;
— life cycle costs;
— life expectancy;
— assets’ power performance.
FOR ASSETS:D

The company shall establish, document and maintain a management plan (or several ones) to achieve the strategy,
or asset management line of action, according to the established scope, to achieve the goals through the following
activities throughout the assets’ life cycle:
• Creation, acquisition or improvement includes conception,
specification, project, modification, procurement,
construction and commissioning.
•Maintenance also includes inspection, condition
monitoring, functional testing, repair, renovation and/or
extension of assets useful life. Replacement of individual
assets can also be regarded as maintenance of the asset
systems.
•Theassetmanagementplancanbedevelopedforindividual
assets, for groups of assets, for isolated systems or for the
global management system. However, it is essential that the
plansarelinkedandcoherentwiththemanagementstrategy
and aimed to reach the preset objectives (directives).
The development of the asset management plan and the life
cycle activities should include an analysis of the actions’
impact on each stage of the life cycle and the needs before
the next stages of the life cycle.
Notes:
a) Acquisition, creation or renewal;
b) Usage;
c) Maintenance;
d) Discard / or alienation.
The SAMP should present in a documental form the relationship between the organizational objectives and the asset
management objectives, and should define what is required to achieve such objectives.
It is important that this alignment be communicated to stakeholders to ensure that all levels understand why asset
activities and asset management activities are implemented.
Some key questions before drawing up a SAMP are:
• What is the current situation of the company?
• Where it is intended to be in the considered time period?
• What are the objectives and associated risks?
• How to achieve them ?
• How long is the time to get there?
• What are the targets?
• How are they measures?
SAMP – Strategic Asset Management Plan {6.2.2}A
24

The SAMP shall address for the assets portfolio:
• The required service level (reliability, safety, regulatory requirements, environmental acceptance, etc.)
• Strategic plan horizon/schedule
• Financial information / expected return of investments
• Roles and responsibilities
• Risk management
• Integration with other management systems
• Specification/Project
• Purchasing
• Operation
• Maintenance
• Renewal/Replacement
• Expansion
• Introduction of New Technologies
• Disposal
STRATEGY
LIFE CYCLE
A
B
25
• Description
• Measurement Range
• Targets
INDICATORSC
The asset management plan(s) shall be the SAMP unfolding for each asset or each group of assets within the asset
management system portfolio.
The development of the asset management plan shall include an analysis of the actions’ impact on each stage of the
life cycle and the needs before the next stages of the life cycle.
A special plan for emergencies or contingencies shall be developed for critical assets, in order to foresee solutions
for catastrophic or large impact events.
The contingency plan shall provide planned answers to possible failures in critical assets resulting from independent
or coincidental events, as well as being capable of fast asset replacement by a backup in case of a failure, or the
system operation blocking, as the case may be.
For transmission lines, as an example, the plan must provide for such failures not affecting the whole system,
by carrying out operational risk’s prediction and analysis, taking into account that undesirable events can have
consequential effects due to a variety of causes:
• The environment: lightning, winds, birds, trees;
• Human actions: accidents, vandalism;
• Malfunction of other equipment: explosions, protection failures.
a. Asset Management Plans {6.2.2}

Figure 9 – Structure of the asset management plan(s)
The Plan
Scope and
Directives
Financial
forecasts
Life cycle
strategies
Continual
Improvement
Actions
Description
data of
considered
assets
Activities, tasks,
responsible
persons and
priorities
Evaluation
Practices
Support {7}B
a. Resources {7.1}
For the asset management system to function properly, its inputs must be provided. These comprise processes,
infrastructure, funding, knowledge, skills, information management, services and the cultural environment for the
system and assets reach the performance required by the organization.
All resources needed to ensure the SAMP and the asset management plans shall be identified. This requirement of
the ISO 55001 standard aims to support the asset life cycle and lead the organization to recognize that commitments
are needed from all organization’s areas, throughout the asset life cycle, in order to ensure the asset performance
wanted by the organization. It is necessary to identify and direct all resources either financial, human, security, tools,
equipment and mainly investment for assets’ replacement, renovation, or acquisition.
When performing asset management plans, a RGA - Resourcing Gap Analysis - can be simultaneously performed
to identify the resource gaps that exist between the actual capacity of the organization and the resources needed
to accomplish the management plans. Where restrictions are found, the organization should prioritize actions and
resources.
The emergency or contingency plan shall ensure that all critical assets can be replaced safely, with small impact to
the system and in the shortest time possible, so that power supply is promptly reinstated.
The emergency plan shall provide for actions in a crisis, and for major accidents, storms, disasters, operations’ center
failure, evacuation plans, including communications continuity planning and foreseeing other emergencies.
For some special assets, it will need to develop an individual contingency plan.
In case of the practical implementation of the plan, this shall be reported and evaluated so that the emergency plan
is improved and increasingly comprehensive.
26

b. Competence {7.2}
c. Awareness {7.3}
The personnel appointed to perform asset management related to roles, authorities, functions and services should
be competent to perform their functions. This shall include external suppliers, service providers and hired labor. It
is necessary that the organization verify if these persons have values, attitudes, knowledge, talent and experience
consistent as expected for asset management. Proof of competency is a requirement.
For example, a skilled person in the business area shall be able to demonstrate clear competence in specific asset
management tasks (such as asset conditions evaluation) and comprehend the relationship between what they do
and the activities performed by other persons in asset management (for example, how its asset conditions evaluation
activity affects the determination of the remaining useful life of the asset).
More than having knowledge and being aware, awareness means to have the exact view of the impacts and
opportunities that the asset management system brings to the organization.
It could be said that it is to take the perspective of the “business owner” and know the risks, opportunities and
services’ quality expected from the organization.
To assess the level of people awareness, one can make interviews on aspects that cover the comprehension of
the asset management policy, such as to effectively contribute to the asset management success, and how the
interviewed see their contribution to the achievement of the organization’s asset management goals, or what else
can be done to achieve a positive differential.
In addition to the asset management policy, the ISO 55002 standards recommend that awareness rate the following
aspects:
27
A why asset management is important to the organization;
B the implications of changes in the organization operation (e.g. if the organization makes changes to its
operational processes or performance objectives the persons accountable for the asset management system should
be aware of any resulting impacts);
C your contribution to the effectiveness of the asset management system, including the benefits of the improved
performance of the asset management system;
D the consequences of asset management related risk (actual or potential) with its work activities, their behavior,
and the asset management benefits of improved personal performance;
E your roles and responsibilities, as well as the importance of their contribution in meeting the requirements of
the asset management policy and of the asset management system;
F the form that the organization is meeting its objectives.
d. Communication {7.4}
It is necessary to have a strategy with plans and communications media to convey the right information to the right
people, inside and outside of the organization, at the right time.
All communication requirements related to relevant assets, asset management and the asset management system
should be identified and addressed, including the transfer and exchange of knowledge and intelligence for planning,
execution, improvement and monitoring of the resulting performance.

e. Information Requirements {7.5}
f. Documented Information {7.6}
Information that must be identified and addressed is those referring to relevant assets, asset management and the
asset management system. The type of information to be saved and for how long depends on its purpose. The ISO
55002 standard lists common information and requirements to asset management and to the asset-management
system.
The form of information collecting, retention, management, terminology consistency and traceability must be
reported, ensuring the quality of information flow.
Main information to be documented:
Some information needs to be documented and maintained in accordance with the Standard requirements. In
general, this is the information requiring control, basically comprising all means, all asset management system
processes and all records evidencing the requirements’ fulfillment.
Policy
Asset Management Plan(s)
Objectives
g. Control of documented information {7.6.3}
The documents selected for use in the organization are considered controlled documents and become a part of
its document management system. They need to be identified, approved, made available when needed, stored and
preserved, have their changes controlled, be filed using archiving practices and have their disposal specified.
SAMP
Auditing
Critical Analysis by top management
Operation: Project and Acquisition of Critical Assets {8}C
The steps preceding the acquisition of an asset are extremely important because they affect directly the assets’ life
cycle. It is used to say that the specification precedes the life start, but totally influences performance over the life
cycle.
Therefore, the specification for assets’ acquisition shall be reviewed periodically based on assets’ operational
performance information and on the need of a technological upgrade, seeking assets that have the lowest TCO (Total
Cost of Ownership), even if their initial purchase value is higher, and taking into account new indicators such as the
power efficiency level.
The specification shall consider the company norms and standards, which also should be revised to include new
technology’s guidelines and adequacy of assets whose performance no longer meets the company’s strategies.
The routine of norms, standards and specifications reviewing must be aligned between the asset management and
engineering areas, both integrated with strategic planning.
The specification for equipment procurement should be led by the asset management pillars: Performance, Cost and
Risk.
28

Practice shows that adopting only the initial cost as a purchase criterion, in most cases, is not the best alternative,
because other aspects need to be considered ever since the specification phase, these are:
These are only a few examples, as many other aspects should be considered, depending on the business of the
company.
a) The equipment normal operation conditions
b) Life cycle costs
c) Risks associated with the equipment failure
d) Power efficiency
e) Overload capability in adverse situations
COST RISK PERFORMANCE
29
Practical example: Asset’s Acquisition by a Logistics Company [A]
(Author: Alexandre Félix do Nascimento Ítalo)
A Brazilian company of the logistics sector, expert in road transport, had a management system being deployed.
This system helped everyday tasks’ performance, but was restricted to maintenance areas. As the company was
substituting and expanding its fleet (consisting of cars and light urban transport vehicles), this significantly penalized
the initial stages of the life cycle that depended on joint efforts from various sectors to be successful. The main
problems faced were:
• Significant vendor delays in the planned schedule of order’s delivery
• Quality failures in delivered products and early death, with assets definitely immobilized with less than 10%
of expected life
• Technical specification problems that compromised operation
• Lack of materials to perform maintenance
• Dissatisfaction and lack of involvement of some areas.
These and other failures caused external customers dissatisfaction and difficulties to expand its transport capacity.
A process of assets (fleet vehicles) acquisition was devised and implemented with steps, deadlines and well-defined
responsibilities, where maintenance was no longer the work center, but one participant of a multidisciplinary group
built with representatives of Strategic Planning, Commercial, Suppliers, Purchasing, Engineering, MCP, Maintenance
Execution and external customers. The main gains obtained were:

• EAP’s (Project Analytical Structure) creation according to the acquired asset that served as the basis
for existing and future projects.
• Alignment of acquisition’s schedule to customer needs.
• Analysis of suppliers’ process capabilities and creation of technical evaluations.
• Development of a trust relationship with the Purchasing sector and a partnership in suppliers’ evaluation,
with direct impact on the future procurement processes.
• Training of operation and maintenance teams, delivery of critical materials, and management of new
assets’ configuration and commissioning before their final delivery to the unit responsible for their
routine management.
• Technical specifications in line with the client’s needs and with the best feasible technology for the
business.
Bringing the operational areas closer is one of the most difficult points to overcome and requires constant action:
They tend not to meet medium-term activities and to worry only after the final delivery of the product, with failure
complaints caused by their own lack of involvement. To achieve the correct performance of this and of other areas, it
was essential do develop stakeholders’ management and implement a communication plan. Results appeared when
asset management became everyone’s responsibility. [20]
Introduction of new technologies shall also be analyzed from the asset management point of view.New technologies
impact on the system could jeopardize the expected outcome of the asset management system, so an impact analysis
should be held for short, medium and long term before acquisition and usage.
a. Analysis for introduction of new technologies
Training needs
New Tools
Changes in processes
New Accessories
Users Resistance
Higher productivity?
Better quality?
Safer?
Fewer failures?
More competitive?
Figure 10 – New Technologies Evaluation
New Equipment
New Technology
New Process
30

Practical example: Introduction of new technologies in the oil and gas industry [B]
(Author: Alexandre Félix do Nascimento Ítalo)
Company “B” with operations in the oil and gas sector began to renew its fleet of ships built by a department and
operated by another department of the same company. There were many unscheduled stoppages for maintenance,
including stops of the newest ships, which generated heavy fines and risk of operating contracts’ cancellation.
It was decided to develop an asset management model to reduce the occurrence of unscheduled downtime, met the
legal requirements, the clients’ internal HSE (Health, Safety and Environment) programs and optimized vessels’ life
cycle.
A RGA - Resourcing Gap Analysis was carried out in the company. The main deviations found were linked to the
lack of a structured process of assets’ acquisition and installation in Operations, which received the ships designed,
manufacturedanddeliveredbytheConstructionDivision.Thecurrentprocessallowedthenewassettostartoperation,
but with a high failure rate, no maintenance planning, no spares in stock, and without technical documentation.
An asset management system based on the ISO 55000 was developed, aligned with the TPM (Total Productive
Management) pillars and the best practices of Project Management, where the disciplines Time Management,
Communication Management and Risk Management were fundamental to achieve the expected result.
An “EAP” (Project Analytic Structure) model was prepared and a schedule was drawn for each vessel, divided into 3
phases.
31
The results were, in the first year of operation:
• Savings over R$ 2 million in spare parts, comparing the manufacturer indications with the one prepared by the
technical group;
• Improved assessment of the company in the Maintenance category under the company main client risk and
safety program;
• Preparation of all maintenance plans for critical assets;
• Increased adherence to maintenance planning;
• Structuring of the Engineering and Maintenance Planning area and definition of the roles and responsibilities
of all involved areas;
• Creation of a multiannual asset management program for the implementation of the remaining tasks required
for managing the entire life cycle of the company assets.
Mapping of the hierarchical structure of the ship and organization of the technical
collection. Definition of maintenance plans, drawing up lists of spare parts using
reliability tools for the first trip and for the first 2 years of operation.
Configuration management, preparation of strategic contracts for materials and
services and inventory planning.
Crew training, quality audits, control of Maintenance Indicators and warehouse and
on board stocks’ management.
PHASE 1
PHASE 2
PHASE 3
For the asset management to be effective, an ongoing risk assessment
is needed, eliminating the ones that can be eliminated and controlling
others to ensure the desired performance at a reasonable cost. [20]

33
Risk management is an important factor in a proactive asset management. The overall objective is to understand the
cause, the effect and the occurrence likelihood of adverse events, to manage such risks optimally, by reducing them
to an acceptable and controlled level.
Risks may be defined as “future uncertainty”. It has two basic components: the frequency and its severity or
consequences. For example, each transformer has an end-of-life, so that the gravity of the event is known. The risk is
not to know when this will occur - or the frequency of failures. Some companies often use the event frequency and
severity product in the analysis process. Despite the frequency and severity information being subjective, qualitative
or quantitative, risk analysis is always an important tool to develop a decision framework.
Risk management is an integral part of every asset management process. Therefore, there is a specific need to have
processes to identify and monitor risks, not only in view of the current law, but also as a practice that makes it
possible to optimize and prioritize actions based on cost, risk and performance.
There are several ways to manage risks [1] and their adoption depends on each organization.
The following are some of these forms:
Classify critical assets and list the risks of each one
Define the scope and limits of individual risk assessments
Create a spreadsheet of potential events and their causes
Include the associated risks, the probable failures and their consequences
Identify existing controls
Create controls for each risk, activity and planned asset
Estimate the probability and consequence of each event or potential risk
assuming that the control measures were taken
Consider the effectiveness of the measures and the probability of each
one failure
Determine whether the control measures are sufficient to keep risks under
control within the tolerance required by the organization and by legislation
Indicate as severe the risks that do not have control measures
or exceed the tolerance limits
Techniques:
SR (risk series),
SE (series of
events), etc.
Techniques:
SWOT,
HAZOP,
PESTLE, etc.
Techniques:
RCM, RBI,
IPF.
Analysis using:
• FMEA
• FMECA
• RCA
• FTA
Methodologies applied to risk managementA
Figure 11 – Risk management methodology
Classification
of assets
Identification
of risks
Control
Measures
Risk
Levels
Tolerance
Levels

For every potential risk, the probability
of failure must be analyzed and its
respective consequence (type, extension
and severity).
For example, one may have two risks with
a high failure probability, the first with a
low severity result (low repair cost without
injury to persons and without damage
to the environment, and the second
risk with critical severity consequences
(severe damage with the unit stoppage,
probability of injury to persons and
damage to the environment)). This
particular risk, may need further testing
and stricter control measures culminating
in proactive maintenance, early renewal
or replacement of the assets before its
end of life.
Risk indicators should be established and
applied to assets for a “risk matrix” to be
created, easing analysis and decision-
making.
There are several risk matrix models, but
all result in a graduation of risks allowing
to take the necessary mitigating measures
for their elimination or reduction. It is
suggested below, as an example, the use
of a model [6] with 5 rows and 4 columns,
resulting in five different levels of risk:
A risk matrix can be divided into three colors (green, yellow and red) indicating low, medium and high-risk and can
also be divided into four regions or quadrants as in the SWOT (Strengths, Weaknesses, Opportunities and Threats)
analysis, indicating the outer quadrant as the most critical risk (more severe and more often) and the other two
quadrants that need mitigating actions because of high frequency or high severity, both cells are proposed for
deciding on actuation forms for frequency and severity of risks.
By the proposed analysis [6], it is noticed that in the risk management matrix, the horizontal axis (severity or
seriousness) that only the figure represented by “Y” is considered because at this point there is no need to differentiate,
if the effect of a failure mode occurs on people’s safety, on the assets, or on the environment, but only to assess the
severity of the involved risk. It is enough to considered Y = 1 when the probability of damage to the environment,
health or safety, is non-existent or insignificant, and greater than 1 when there is a significant probability.
After analysis and tabulation of the risks of each asset, these risks are mapped in the matrix. The next table summarizes
the results that may be obtained in the matrix with condition and recommended actions [6]. It is observed that the
deadlines are given as examples and can be changed according to the guidelines of each company.
Figure 12: Risk matrix [6]
34
Another manner is to use the risk matrix:

35
Check if there is any strategy or
maintenance task to prevent failure
or reduce risk to degree III. Otherwise,
it shall be mitigated with projects/
actions within 6 months.
Check if there is any strategy or
maintenance task to prevent failure
or reduce risk to degree III Otherwise,
it shall be mitigated with projects/
actions within 12 months.
Checkforstrategyormaintenancetask
to avoid failure. Otherwise, procedures
or controls should be created.
Some of the necessary measures
are signs and warnings. Check if
any strategy or maintenance task
to prevent failure is economically
feasible.
No mitigation is required
Table 1: Risk Classification, conditions and recommended actions
RISK DEGREE CATEGORY
CRITICAL Not
acceptable
Undesirable
Acceptable
with controls
Acceptable
with warnings
Acceptable
SERIOUS
MODERATE
SMALLER
NEGLIGIBLE
CONDITION ACTIONS
If the risk degree is I, II or III, it is considered that the failure mode analyzed has implications on the environment,
health and safety and should be subjected to further questionings, such as reliability-centered maintenance. In this
case, maintenance strategies or proactive actions that meet the predefined criteria must be defined, or changes in
the design specification shall be made.
Knowing the variables Y (severity degree), F (frequency) and (R) risk degree, one can list the recommended actions
for each case.
Risk management should be an ongoing process searching for defects, failures or near misses, in order to prevent
them and control the effects.
For risk without control measures existent or proposals, the failure probability study should be conducted more
thoroughly. Here the analysis shall include technical, economic and strategic aspects.
In the event of a failure stemmed from a high-risk potential, direct and indirect costs will be involved, including some
intangible aspects that are not always considered.
Another important consideration in asset and risk management is compliance with legal requirements and regulations
for the company operation, that under no circumstances may be unattended due to exposure to risks.
The costs of repairs or corrective maintenance can reach more than 35% of the costs of a
company, which further motivates the risk management and minimizing failures actions [2].

Actions to address risks and opportunities for the
asset management system {6.1}
Management of Change {8.2}
B
C
The objectives of using risk management in asset management are:
- Give assurance that the asset management system can achieve its Intended outcomes;
- Prevent, or reduce, undesirable events and effects
- Determine new opportunities
- Achieve continual improvement.
It shall be taken into account that risks and opportunities change over time, so it is important that this assessment
be made periodically and promote the necessary changes to achieve the objectives.
Internal or external changes affecting assets can impact on the organization capacity to achieve its asset management
objectives. It is important that these changes are assessed, and mitigating actions are taken before the change
occurs. A critical analysis must be made of the consequences of both the planned changes, as well as the unplanned.
The main changes that require this analysis are:
36

Outsourcing {8.3}
D
Outsourcing is a common method for an organization that prefers to perform certain asset management activities
not by itself, but by an external or internal service provider. When these activities influence the achievement of the
asset management objectives, it is advised that these should be part of the asset management system, and should
be documented.
The organization should formalize (with a contract) the level and quality of outsourced services.
An important care to be taken is to not to lose control over the objectives of outsourced services and the results to
be achieved.
For the asset management system to be adequately controlled, it needs a monitoring able to early identification of
any deviation that can impact performance and the expected results.
• changes in organizational structures, roles or responsibilities;
• asset management policy, objectives or plans;
• process(es) or procedure(s) for asset management activities;
• new assets, asset systems or technology (including obsolescence);
• factors external to the organization (including new legal and regulatory requirements);
• supply chain constraints;
• demands for products and services, contractors or suppliers;
• demand on resources, including competing demands.
37

MONITORING THE OPERATION
STEP 4

After acquisition, the commissioning stage starts after the manager or contractor have completed the implementation
or acquisition of the project, and the asset or system is ready for use.
From this moment onward, monitoring of the asset performance must be conducted and recorded, enabling the
future analysis of the life-cycle.
Commissioning marks the beginning of the operation, which can occur in various ways. In a power substation,
the final test of the installation should be performed and documented through an as-build of the plant. At the
same time, the operation and maintenance personnel must be trained on the operational requirements of the new
plant. The initial phase ends when the new asset is put into commercial operation, and preventive and corrective
maintenance guidelines are established and known by the station teams.
Monitoring should take place throughout the asset lifetime to enable decision-making.
The monitoring comprises the following steps:
The expected results by asset management will only be achieved if there are a systematic measurement, monitoring,
analysis and evaluation of assets.
The methods for monitoring, measurement, analysis and assessments depend on each organization and should
review the necessary items for decision-making on assets.
Usually, indicators are adopted for evaluation. These indicators should be established in the asset management plans.
Performance and risks indicators are determined with the following assumptions:
Aligned with the strategic objectives of the company
Balanced and measurable
Deployed to all levels of the organization
Monitoring steps:
• Checking and comparison with standards • Observation of deviation from objectives
• Identification of problems • Review of partial results
• Communication for targets’ change
Performance evaluation {9}
A
Figure 13 Premises for indicator’s definition
INDICATORS
39

The system shall be assessed through the evolution of indicators in time in relation to:
Examples used in utility companies:
• Regulated Indicators (DEC, FEC, DIC, FIC etc.)
• MTBF – Mean time between failures
• Availability (hours without interruption)
• Failure rate / critical equipment
• Fault severity
• Mean time between repairs
• Maintainability
• Frequency of failures or repairs
• Technical losses / MWh installed or Total loss / km network
• Reliability
• Hours dedicated to asset management / team hours available
Definition of indicators {9.1}B
Figure 14: Indicator´s classification according to asset management fundamentals.
a. Performance indicators or KPI´s
PERFORMANCE COST RISK
Examples of cost indicators used in utility companies:
• Total cost of maintenance/ total asset value
• Actual cost (sum of amortized repair costs (average acquisition cost - average depreciation X (1- average
age of asset) )
• Operating Cost / MWh sold
• Maintenance Costs** / Estimated costs of assets’ replacement
• Maintenance Cost / Operating Cost
• Cost of operation / Asset’s base value
• Capex value provided / Performed capex value
**Maintenance cost includes labor, contractors, support, overhead, training, spare parts, materials and systems,
excludes depreciation costs and downtime because of maintenance.
b. Cost Indicators
40

• Exposure Degree / number of failures
• Probability of failure / maintenance costs
• Investment in training / costs of accidents and incidents
• Estimated costs of the company exposure / investments in maintenance and operation
• Rate of return per maintenance project
• Number of warnings from the regulator / MWh sold
• Cost fines / investments in maintenance
Measurement is
always necessary
There are no
ready-made formulas,
it is needed to be
aligned to the strategic
objectives of the
company
The evolution
expresses the result
Caution: the most
important thing is not
the value, but
the interpretation
Internal audits are effective tools to ensure that the asset management system conforms to its own requirements.
Usually, such audits take place at planned intervals, are able to early point out deviations, and identify opportunities
for improvement.
Internal audits should be seen as a self-evaluation process that encourages participants to seek opportunities for
improvement. The active participation, understanding and support of the organization’s members are important for
the top management to make a critical analysis of the entire asset management system.
Internal audit {9.2}
C
c. Risk indicators or KRI´s
41

ANALYZE THE ASSET MANAGEMENT SYSTEM
STEP 5

Managing the lifecycle of critical assets is an essential component in asset management and requires the application
of technical and economic criteria for decision-making.
All equipment has a life cycle that consists of stages ranging from conception to disposal, or recycling:
Life cycle analysis besides providing a deeper knowledge of the assets behavior helps companies to define the right
time for disposal and how this disposal should be made in order to minimize the associated environmental impacts.
The life cycle is understood as the time of the asset existence within the company from design and specification to
disposal for recycling or scrap.
Economic & Life Cycle Assessment
A
Figure 15 Economic analysis and the life cycle
43
During the life cycle events caused by incidents, accidents or failures accelerate the asset
useful life end, reducing its life expectancy, or the asset remaining operational life under
the required conditions.

Adequate monitoring of the asset operation enables the management team to estimate the remaining life depending
on the severity of the events throughout the life cycle and determine the exact point for the asset replacement
before an irreversible failure could happen.
For the company to get the best yield and the best performance of an asset, it is necessary to make its life cycle
management.
The management of an asset life cycle shall comprise:
• A continual monitoring system;
• The evaluation and registration of incidents, accidents and failures;
• Specific maintenance strategies;
• Analysis of the life cycle cost;
• Management of risks, reliability and its failure probability.
As an example, considering a transformer with dummy data, and assuming a supervisory and monitoring system
installed in the feeder, we will have over the years the record of events and operating information.
The evaluation of failures occurred with this type of asset and its causes showed the following results (fictitious):
Figure 16: Example of failures assessment
49% material 34 % assembly
11% internal
residue
6% need
further
examination
44

With the information of material failures detailed by component, the reliability analysis can be made [11]:
The following can be calculated:
• Average availability
• Total operating time
• Time spent with maintenance
• Expected number of failures over the lifetime
• Average time till the first system failure
• Reliability
• Maintainability
• Life expectancy
The analysis of these parameters should feedback
maintenance strategies, renewal and replacement
of the transformer.
At this point, the economic analysis and the risk
analysis should be aggregated to the life cycle
analysis to prepare data for decision-making [14].
The various decision scenarios can be tabulated
with the following information (fictitious data):
Failure Distribution: Weibull, b= 1.4, h = 1000
Repair Distribution: Weibull, b= 1.4, h = 100
Failure Distribution: Weibull, b= 2.0, h = 5000
Repair Distribution: Exponential, MTTR = 12
Failure Distribution: Exponential, MTTR = 10,000
Repair Distribution: Normal, m=8, s= 0.00001
A B C
COMPONENT A
COMPONENT B
COMPONENT C
45

The definition of the chosen scenario is based on the better performance at lower cost and longer life expectancy.
Cheaper solutions may not be the most durable and give the best performance, therefore, the need to overview
different scenarios.
Most companies do not take into account in their decisions the hidden costs that can be defined as costs that are
not normally apparent, but that are important for the asset operation.
Some of these costs are exemplified below and are established according to each company particularities:
• Transport costs for maintenance and repair of assets;
• Cost of emergency workers to meet the occurrence and put the asset into operation;
• Cost of the management team to analyze the failure and propose a solution;
• Non-quality cost;
• Probable cost of an accident involving persons;
• Probable cost of damage to the environment;
• Rework costs in the event of a repeated failure;
• Cost of customer dissatisfaction with the power supply interruption;
• Fines, fees and penalties for an asset failure;
• Cost of using an equipment of low power efficient (which increases losses and brings non-measurable
losses by the company). For example: induction motors, distribution transformers, etc.
The initial investment is only part of the total costs involved in an asset and its
long-term use. The investment that seem high at the time of purchase can be
paid in the long run through lower operating and maintenance costs.
Where:
SI = Without intervention
RP= Partial reform
RE= Renewal (complete reform)
SU= Replacing with a new one
The analysis of Life Cycle Costs (LCC) considers all operating and maintenance costs, beyond
the initial investment for acquisition of an asset. Other major costs are the hidden costs, taxes
and administration costs in return for subsidies received, added values and residual values.
46
Scenery
Cost of
action
Current
estimate of
remaining
life
Cost of a
new fault
Equivalent
Annual Cost
Operating
hidden costs
Until
replacement
Expected
life After
taking-action
Risk
profile
SI R$ 0 10 10
25
25
30
5
2,5
2,5
1,5
15
15
15
R$ 500 R$ 500
R$ 450
R$ 450
R$ 1.000
R$ 1.000 R$ 105,50 R$ 600
R$ 400
R$ 300
R$ 100
R$ 80,50
R$ 80,50
R$ 80,50R$ 1.500
RP
RE
SU
Table 2: Example of scenario analysis

Figure 17: Steps for the LCC (Life Cycle Cost) or cost analysis during the life cycle
Identification of the alternatives of the analysis
Preparation of cost unfoldment tree
Data and information collection
Development of cost profiles per period
Cost analysis, their reasons and impacts
Selection of the best alternative
Development of Pareto charts for the
alternative levelingfor the the first stage
1
FEEDBACK
2
3
4
5
6
7
The complete analysis can be better understood through the example of an asset of a mining sector company: the
press filter [14].
The press filter is an equipment used in the mining process to perform the separation of the processed ore, and the
water added to the process to carry it through pipes.
In this case, we will consider four options for analysis (Maintenance of current condition, Change or replacement,
Re-powering and Overhaul) of the life cycle with a 10-year horizon.
The Pareto graphs were performed for each of the alternatives [14]:
a) Maintenance of the current condition (no interventions)
Costs Costs up to 10 years % up to 10 years Accumulated
Purchasing
6.403.920,20
26.721.669,80
... ... ...
0,0 0% 0%
23,97% 23,97%Component A
Component B
Total
47
The analysis of the LCC (Life Cycle Costs) [14] can be made by the following steps:

2 3 4
Situation 2 (change):
Acquisition in January, availability
provided by the manufacturer
of 98% and loss reduction in
maintenance by 95%.
Situation 3 (repowering):
maintenance by 92%.
Situation 4 (overhaul):
maintenance by 90%.
b) Change or replacement with new equipment
c) Re-powering of existing equipment
d) Equipment overhaul
Costs
Costs
Costs
Costs up to 10 years
% up to 10 years
% up to 10 years
% up to 10 years
Accumulated
Accumulated
Accumulated
Purchasing
Purchasing
Purchasing
3.842.352,10
5.891.606,60
5.763.528,20
23.977.763,90
23.417.480,40
27.624.645,80
...
...
...
...
...
...
...
...
...
7.944.762,00
2.383.428,60
3.575.142,90
33,13%
9,02%
12,94% 12,94%
33,13%
9,02%
16,02%
22,30%
20,86%
49,16%
31,33%
33,81%
Component A
Component A
Component A
Component B
Component B
Component B
Total
Total
Total
48

Then, we consider the following historical company data:
• Ratio of American Dollar / Real.
• Annual inflation rate.
• Environmental costs and production loss costs = the same values were adopted for the 4 options, so as to cause
the analysis to focus exclusive on maintenance costs.
• Analysis limit = 10 years.
• Hours per year = 8080 hours.
• Maintenance intervals, parts list and needed man-hours. The maintenance plan adopted by the company is based
on the manufacturer’s manual.
For each option the NPV (net present value) is calculated and the IRR (internal rate of return), and the best result in
this example was obtained with alternative 3.
The analysis of costs over the life of assets depends on the data collected during all phases of the cycle by continuously
monitoring of the asset.
Consider a compressor that has been operating for 10 months in severe conditions (dust, temperature and humidity
well above average), and so had numerous fails.
To solve this problem we suggest an analysis by reliability engineering methods, in particular using the statistics
curves of Weibull.
From the compressor basic information, the hierarchy of components can be defined, enabling the creation of a
functional tree. This makes it possible to define the appropriate maintenance activities for each component, as well
as the cost analysis by failure event.
Through a FTA simulation, maintenance costs are obtained over the life cycle of the compressor, whose service life
is estimated at 20 years.
Calculation of the economic life of an asset
and LCC analysis
B
Practical example: High Performance Compressor [C]
Author: Claudio Caiani Spanó
?
From this scenario, how to determine the
optimal compressor replacement time based
on the best cost-performance relation?
49

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
R$ 20.518,73
R$ 20.410,36
R$ 20.190,50
R$ 20.170,88
R$ 20.243,03
R$ 20.351,15
R$ 20.104,74
R$ 20.422,32
R$ 20.189,48
R$ 20.271,16
R$ 20.383,32
R$ 20.296,65
R$ 20.284,15
R$ 20.377,45
R$ 20.194,76
R$ 20.303,46
R$ 20.223,03
R$ 20.271,57
R$ 20.117,37
R$ 20.317,17
Table 3: Example of maintenance cost over time
OPERATING
TIME (YEARS)
MAINTENANCE COST
System Overview - Compressor
Average Availability (all events) 97%
Expected number of failures 2.570,57
Standard deviation (number of failures) 63,21
Available time (hr) 1 70.100,50
Total downtime (hr) 5.099,50
Number of failures 2.571
Total cost R$ 405.751,05
Equivalent operating cost of maintenance, considering the expected duration of the asset = 20 years
The simulation results provide data on the maintenance cost for any time, i.e. each analyzed year (LCC analysis base).
From the simulation, the related performance and cost indicators are obtained throughout the planned life cycle for
the compressor, featuring parameters to calculate the economic life of the asset.
50

The analysis of the economic life calculation of an asset and LCC analysis allow to obtain multiple benefits for the
operation and maintenance activities, such as:
• Organize and direct the activities through hierarchy
• Determine and classify the components
• Understand and quantify the performance of the most critical components
• Understand the financial context and of the compressor
• Apply knowledge acquired in other optimizations:
• Determine ideal stock of spare parts
• Determine optimized preventive maintenance and inspections
Calculations and costs analysis over the life cycle, as well as performance evaluation, are essential tools to support
decision-making.
Figure 18: Example of LCC cost analysis
Time
(years)
Equivalent
Capital
Cost/year
Equivalent
Property
Cost /year
Equivalent
cost O&M
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
R$ 22.500,00
R$ 19.687,50
R$ 17.343,75
R$ 15.380,86
R$ 13.728,52
R$ 12.330,32
R$ 11.140,92
R$ 10.123,73
R$ 9.249,15
R$ 8.493,18
R$ 7.836,26
R$ 7.262,43
R$ 6.758,60
R$ 6.314,03
R$ 5.919,82
R$ 5.568,62
R$ 5.254,32
R$ 4.971,81
R$ 4.716,81
R$ 4.485,73
R$ 31.558,73
R$ 32.584,38
R$ 33.522,97
R$ 34.589,31
R$ 35.706,85
R$ 36.923,80
R$ 38.141,06
R$ 39.484,93
R$ 40.840,45
R$ 42.275,22
R$ 43.794,37
R$ 45.365,40
R$ 47.005,92
R$ 48.736,83
R$ 50.516,24
R$ 52.397,12
R$ 54.351,98
R$ 56.406,72
R$ 58.532,43
R$ 60.793,20
R$ 54.058,73
R$ 52.271,88
R$ 50.866,72
R$ 49.970,17
R$ 49.435,36
R$ 49.254,13
R$ 49.281,98
R$ 49.608,66
R$ 50.089,61
R$ 50.768,40
R$ 51.630,63
R$ 52.627,83
R$ 53.764,52
R$ 55.050,85
R$ 56.436,06
R$ 57.965,75
R$ 59.606,31
R$ 61.378,53
R$ 63.249,24
R$ 65.278,93
51
Therefore, it was possible to identify
the optimal time to replace the
compressor, based on the minimum
cost of the asset ownership.
The ideal time would be the sixth year,
rather than wait for the full course of
20 years, representing a reduction of
cost of 32.53% in the lifecycle.
MINIMUN COST
Asset equivalent cost Property cost O&M cost

DECISIONS MAKING AND SEARCH FOR
CONTINUOUS IMPROVEMENT
STEP 6

In general, the best asset management practices take place when the company chooses to keep its assets in use
for as long as they remain in a safe condition, technically efficient and economically viable. Management and
maintenance policies should support this goal, actively intervening to ensure continuous performance improvement.
The company needs a clear policy of assets’ renewing that must be replaced not only when they are irreparably
damaged, but also when:
a) The operating and/or maintenance costs over the remaining life of the asset exceeded the replacement cost;
b) There is an imminent risk of the asset failure;
c) The impact of a likely failure exceeds the replacement cost;
d) A probable failure may compromise the reliability and security of the system and people;
e) The assets have become obsolete and inefficient to operate and to maintain;
f) Replacement gains imply improvement of indicators related with people safety, the environment and the
company performance.
For decision-making to take place in the best possible way, it is necessary that the management team has accurate
information on the assets’ conditions. The basic information is:
• Monitoring the assets’ condition (operating conditions, inspection data, testing, maintenance, incident
recording and occurrences);
• Development of a diagnosis to interpret the condition monitoring data;
• Determination of failure modes, reliability and statistical analysis;
• Calculation of failure rates, remaining life and probability of failure;
• Economic analysis of capital investments and costs of assets;
• Risk analysis of critical assets.
In the asset management system, the quality of data entry has a significant impact on the output accuracy, so it is
important to have the staff commitment in keeping records up to date and organized.
Maintenance plans, revamp and renewal of assets should be part of the annual planning with asset management
having its own budget. This will allow designing the asset management, and modeling its long-term planning.
Asset managers are also responsible for determining which items should be kept as a strategic stock, mainly due
to the time that the supplier need for replacement and the importance of the component to the company system.
The timing of new technology’s introduction should also be decided by the asset management team based on
historical and market trends.
Often the asset management team is who points out the need of technological update or change in specifications,
as in the following example:
53
Analysis for technological modernization based
on energy efficiency
A
Practical example: Electric Motors [D]
In 2010, a major porcelain industry, with 60 years of experience in the market, found among its critical assets the
existence of equipment that was acquired at different times since its founding with old technologies and without
concern for energy efficiency [16].
The factory mills, essential for the business, used standard electric motors with low efficiency and high power
consumption. When evaluating its manufacturing process and mapping the critical assets’ condition and seeking
solutions on the market, the company found that it was necessary to change the specification of the motors and
replaced them with high-efficiency ones.
This change took place in three distinct stages:

At this initial stage, a mapping of the ball mills’ function within the process was
performed by raising the installation data, the motors’ data and detailed consumption
and efficiency measurements for various operating cycles.
The analysis of measurements and operating curves made it possible to conclude
that it was necessary to replace the conventional electric drive motors of the mills by
permanent magnet motors and a power inverter with braking device and IP65 degree
of protection.
These combined features allows saving energy by using an extra-high-efficiency motor,
and also fit the motor operating environment and provide operational flexibility with
variable speed.
After replacement of the motors and their driver (inverter) measurements were made
to evidence savings from replacing the standard type rotary motors by extra high
efficiency motors (permanent magnets and frequency inverter). The results for one
substituted motor are shown in the following tables:
IDENTIFICATION OR
DIAGNOSIS:
ANALYSIS OF THE
CURRENT STATE AND
SPECIFICATION CHANGE
EVALUATION OF
RESULTS AFTER
EXECUTION
1
2
3
Standard CA Direct Starting 40 1175 380 200L 243 26,9
17,7200L 2393800 a 180060
60
60
Wmagnet -
Permanent
Magnets
Frequency
Inverter
CONSUMPTION REDUCTION:
ANNUAL GAINS:
Motor Driver Power
(kW)
Rotation
(rpm)
Voltage
(V)
Freq.
(Hz)
Torque
(Nm)
Casing
Consump-
tion
(kW)
54
26,9 278 12 69.724,80 17,43 15.674,14
9.024,2810,0412 40.143,6027717,7
Consumption
(kW)
No
hours
opertion/
cycle
No
cycles/
month
No
months/
year
Total
kWh/years
R$/ year
(electricity)
Ton of
CO2
/year
The annual energy savings with one of the new engines is R$ 6,649.85. As investment for the high performance
motor implementation was R$ 15,977.21, the return on investment takes 2 years and 4 months [16].
With this solution, the company stopped issuing 7.38 tCO2 per year, equivalent to the absorbing capacity of 37
native trees.
These gains only occurred because the asset management team of the company decided to evaluate its critical
assets before their end of life, reviewing the specifications of the original design of the manufacturing plant and
researching new technologies in the market that could provide increased reliability and better competitiveness.
Risk analysis should support asset management decisions, facilitating the prioritization of investments and alignment
of management plans.
Management plans should always be reviewed and re-evaluated (planned vs. actual) for defining setting actions
within an improvement program.
All asset management actions should focus on continuous improvement of the management process to obtain the
following results:

Figure 19: Continuous improvement cycle for asset management
Establish goals,
objectives, methods
and standards
Improve and perfect
the process
Put methods
and standards
into practice
Measure the
obtained results
CORRECT
CHECK
PLAN
EXECUTE
55
Change of maintenance
culture into the asset
management culture
Creation of
permanent values
Excellence in assets’
performance
A B C
Periodically, the asset management system should be reviewed and audited in order to identify improvement
opportunities.
Early on, before the implementation of the asset management system, it is recommended to carry out a diagnosis
and a gap analysis to know exactly the current state, and to know where it is possible to act immediately.
Following the of PDCA (Plan, Do, Check and Act) methodology for the continuous improvement process to reach the
best results you must follow the steps below:
Figure 20: Main phases of the continuous improvement process

Asset management marks the beginning of a new era in business administration, something to be practiced by
those seeking business excellence. Asset management is not limited to the management of asset, but transcends the
barrier of operational limits to influence the business strategies.
The ISO 5500X standards, issued in 2014, brings to organizations the challenge of quantifying their efficiency in
terms of risk. The balance between cost, performance and risks can only be achieved through asset management
practices.
For companies that are willing to seek international performance standards within competitive markets, asset
management brings, from the context of the organization, a new proposal to realize the strategic objectives. This is
accomplished by integrating all areas of the organization, so that each one recognizes its role and responsibility in
achieving value through organization assets.
In the case of asset-intensive companies, whose business is based on the operation of physical assets, the rules bring
an innovation to the life of assets, no longer limited to the period between acquisition and disposal, but understood
from the asset specification to the liabilities remaining after decommissioning.
The adoption of these practices by companies brings results in short, medium and long term. These results are seen
in improvement of technical, economic and financial performance; reduction of risks and liabilities; provision of
transparency, security and traceability of investments; besides favoring investment funding and distribution over
time.
Several benefits were conquered by companies already practicing asset management and adopting the international
standards of the ISO 55000 series, mainly for asset-intensive companies such as electric utilities. Among the main
achieved benefits, we shall mention the following:
• A better Strategic
Vision of the business;
• Improved technical and
financial performance;
• Change in culture;
• Improved competitiveness.
57

Bibliography
[0] ISO 5500x
[1] Zampolli, Marisa, “Guia básico para implantação da gestão de ativos em empresas de energia”
(Basic guide for the implementation of asset management in power companies), 2012
[2] Zampolli, Marisa et al, “Gerenciamento de Ativos no setor elétrico da América Latina Resultados
da Pesquisa: Melhores Práticas e Tendências” (Asset management in the Latin America power
sector - Research Results: Best Practices and Trends), October 2011
[3] Pereira, Felipe Ernesto Lamm, “Determinação do intervalo de manutenção programada da
proteção de linhas de transmissão considerando-se penalidades associadas à indisponibilidade”
(Determining the scheduled maintenance interval of transmission line protection considering
penalties associated with unavailability) Doctoral thesis – PUC Rio – October 2008
Bartlett, S., “Asset Management in a Deregulated Environment” on behalf of the CIGRE Joint Task
Force 23.18 and Australian Working Groups, CIGRE Biannual Meeting, Paris, 2002
[4] Cheberle, Luciano A.D.; Carvalho, Cláudio E., “Controle patrimonial georeferenciado com
padrões regulatórios de codificação e descrição das características técnicas dos ativos em serviço
no Brasil” (Georeferenced asset control with regulatory coding standards and description of the
technical characteristics of the assets in service in Brazil) submitted in the CIDEL, Argentina 2010
[5] Burle, Hélio, “Da manutenção para a gestão de ativos” (On maintenance for asset management),
submitted in the SIC- Simpósio Internacional de Confiabilidade, 17/05/2012

[6] Raposo, José Luis Oliveira, “Manutenção centrada em confiabilidade aplicada a sistemas
elétricos: uma proposta para uso de análise de risco no diagrama de decisão” (Maintenance
focused on reliability applied to electrical systems: a proposal for risk analysis used in decision
tree), Master’s dissertation - Universidade Federal da Bahia, 2005
[7] Pintelon, L., Gelders, L. and Puyvelde van, F., “Maintenance Management, Acco Leuven,
Amersfoort”, 1997
Davidson, Innocent E., “Utility Asset Management in Electrical Power Distribution Sector, School
of Electrical, Electronic and Computer Engineering, University of KwaZulu-Natal, 2005
[8] Marcorin, Wilson R., Lima, Carlos A.C., “Análise dos Custos de Manutenção e de Não-
manutenção de equipamentos produtivos” (Analysis of Maintenance Costs and Non-maintenance
of production equipment), 2004
[9] Bartley, William H. et al, “Life Cycle Management of Utility Transformer Assets” presented at
Breakthrough Asset Management for Restructured Power Industry, Salt Lake City, 2002
[10] Picanço, Alessandra, Martinez, Manuel L. B., “Desempenho de transformadores de distribuição”
(Performance of distribution transformers), Universidade Federal de Itajubá, 2008
[11] Seixas, Eduardo, “Manutenção Focada na Gestão de Ativos” (Maintenance Focused on Asset
Management), Reliasoft, submitted in the 2nd Amazonian Seminar on Maintenance, May 2012
58

[12] Pinto, Luis Henrique Terbeck, “Análise de Falhas – Tópicos de Engenharia de Confiabilidade”
(Failure Analysis - Reliability Engineering Topics) Engenharia de Manutenção Central, November
2004
[13] SAKURADA, Eduardo Yuji, “As técnicas de Análise do Modos de Falhas e seus Efeitos
e Análise da Árvore de Falhas no desenvolvimento e na avaliação de produtos” (Failure Mode
Analysis Techniques and its Effects & Analysis and Fault Tree in the development and in products’
assessment) Florianópolis: Eng. Mecânica/UFSC, (Masters dissertation), 2001
[14] Herculano, Adriano Souto, “Mensuração e avaliação dos custos no setor de manutenção
industrial de uma mineração: impacto gerencial no ciclo de vida” (Measurement and assessment
of costs in the industrial maintenance sector of a mining: managerial impact in the life cycle),
Masters dissertation, UFPB, 2009
[15] Van Duc, Nguyen, “Managing T&D Assets to enhace business performance” presentation on
6th Harmonisation Forum, Thailand, June,2012
[16] WEG catalog /Procobre, 2011
[17] Belardo, Carlos A. , Lopes, J.C.R, Souza, P.D. “Manutenção Centrada em Confiabilidade aplicada
na gestão de linhas de transmissão subterrâneas” (Reliability Centered Maintenance applied in the
management of underground transmission lines), 2009
[18] Martins, Maria A. G., “Gestão da vida útil dos transformadores” (Lifecycle management of
transformers), EDP, 2009
[19] Nascimento, Sebastião Vieira do. “Engenharia econômica: técnica de avaliação e seleção
de projetos de investimentos” (Economic engineering: technical evaluation and selection of
investment projects) Rio de Janeiro: Editora Ciência Moderna Ltda., 2010.
Nascimento, Sebastião V., “A importância da substituição de equipamentos” (The
importance of equipment replacement) article found at http://www.logisticadescomplicada.com/
a-importancia-da-substituicao-de-equipamentos/
[20] Practical examples:
[A] Practical example: Assets’ Acquisition in a Logistics Company
Author: Alexandre Félix do Nascimento Ítalo
[B] Practical example: Introduction of a new technology in an Oil and Gas Company
Author: Alexandre Félix do Nascimento Ítalo
[C] Practical example: High Performance Compressor – Reliasoft
Author: Claudio Caiani Spanó
[D] Practical example: Motores Elétricos Eficientes – WEG
Authors: WEG and PROCOBRE Brasil
[21] PAS 55 - BSI (British Standards Institution)
59

61
Case study AES Tietê – Preparing the SAMP
1 Author: Rafael Schmitz Venturini de Barros, CMRP, CRP – AES Tietê
In 2009, the AES Tietê started to working with the asset management concept. Lately, since 2012 the company has
been keeping an asset management system based on the PAS 55 and more recently in the ISO 55001.
The asset management system is structured in the form of a PDCA where the starting point, the “P” is the strategic
asset management plan, or SAMP (Strategic Asset Management Plan).
In item 4.1 of the ISO 55001 it is explained that the objectives of the asset management, which are stated in the
SAMP, must be aligned to and consistent with the organizational objectives. Thus, in the construction of AES Tiete
SAMP, the first step was to evaluate how the asset management system would contribute to the AES strategy in
Brazil.
The AES Brazil current strategy is called SPARK 15 and is structured in the form of a temple, as shown in Figure 1.
The temple has four pillars that are the strategic drivers with four statements, which are like guiding lines that will
help us to achieve the proposed objectives and the organization five values.
“To be a leader in
the Brazilian energy
sector by providing
sustainable, safe,
reliable, affordable
power”
Figure 1 - Organizational Strategy of AES Brazil

62
Among the four strategic drivers, it was identified that AES Tietê asset management system would contribute to
the third strategic driver: “Efficient use of resources and disciplined execution”, which is found in the objective
“Managing assets with efficiency - Additions in the regulatory asset base and the PAS 55 and ISO 55001”.
From this point, the asset management strategy of AES Tiete was designed. It was structured using the Balanced
Scorecard methodology. The asset management strategy can be seen in Figure 2.
F1. Manage assets efficiently
F2. Optimize
operating costs
CS1. Optimize the availability of
energy production assets
CS2. Operate in a responsible and
sustainable way
F3. Maximize the MRE
proceeds
F4. Reduce MRA
exposure
Figure 2 - Asset Management Strategy
Strategic Objectives – O&M 2015 to 2019
INCREASE PRODUCTIVITY ENSURE REVENUES
Operating Cost
(15%)
PI1. Optimize the assets
life cycle costs
PI2. Promote process
improvement
People (10%)
P&C1. Manage by skills and
abilities
P&C2. Promote achievement
at work
Culture (10%)
P&C5. Integrated vision of the business
P&C6. Keep alignment with the AES values
P&C7. Continuous APEX improvement
P&C8. Safe behavior
P&C9. Innovation
Technologies (10%)
P&C3. Maintaining the data base
reliable to support decision-making
P&C4. Intelligent operation
Producibility (10%)
PI10. Maximize power
generation meeting the SIN
requirements
PI11. Search Adjacencies
Sustainability (5%)
PI18 Sustainability of the
assets life cycle
Regulatory matters
(5%)
PI15. Meet 100% of the
standards and regulations
required in the country
PI16. Meet the requirements
of operating licenses
PI17. Search to maintain the
current physical guarantee of
reservoirs
Safety (10%)
PI12. Improve safety culture
in the company employees
and contractors
PI13. Spread the integrated
PAE/SOSem contingency plan
to the entire company
*PI14 Reduce safety risks of
assets
Maintainability /
Supportability (10%)
PI3. Optimize times and
improve the Administrative,
logistics, execution of
maintenance and operation
processes
PI4. Reduce the average
intervention time of assets,
in a cost- effective way.
Reliability (15%)
PI5. Monitor assets,
diagnose faults and act
proactively to avoid them
P16. Fulfill the
maintenance plan
efficiently and promote
continuous improvement
PI7. Increase the mean
time between maintenance
of assets, in a cost-
effective way
PI8. Identify root causes
and the probability of
failure of assets to prevent
recurrences
PI9. Quantify and act on
human reliability
PEOPLEANDCULTUREINTERNALPROCESSES
CLIENTS
ANDSOCIETY
FINANCIAL

Cobre - Gestión de Activos – Guía para la aplicación de la norma 55001

Cobre - Gestión de Activos – Guía para la aplicación de la norma 55001

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (17)

Similar to Cobre - Gestión de Activos – Guía para la aplicación de la norma 55001

Similar to Cobre - Gestión de Activos – Guía para la aplicación de la norma 55001 (20)

Recently uploaded

Recently uploaded (20)

Cobre - Gestión de Activos – Guía para la aplicación de la norma 55001