1. The document discusses creating a robust asset management strategy to optimize performance and reliability. It aims to reduce costs through non-asset solutions, maximizing asset life, lowering ownership costs, and ensuring accountability. 2. Current benchmarks show best performers invest heavily in asset management using historical and real-time data in lifecycle plans. Risk management techniques applied to maintenance reduce downtime. 3. A successful strategy considers the organization holistically with buy-in from senior leadership and accountability at the corporate level, not just an isolated team. Condition monitoring, lifecycle analysis, and optimization of maintenance and shutdowns can improve outcomes.

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Creating a robust asset management
strategy to optimise asset performance
and improve asset reliability
N o v e m b e r , 2 0 1 5
Nick Tompkins – Technical Manager

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Objective:
• The objective of asset management is to achieve the best possible
match of physical assets with the requirements and goals of the
business that uses the assets .
Therefore addressing the costs in terms of:
• reduced demand for new assets by adoption of 'non-asset' solutions;
• maximising the service life of existing assets;
• lowering the overall cost of owning assets through the use of life-cycle
costing techniques; and
• ensuring a sharper focus on results by establishing clear accountability
and responsibility for assets.
Asset Management

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• GFMAM (The Global Forum on Maintenance and Asset Management) 10 member organisations including the
AMCouncil
• The Asset Management Landscape
• IAM (Institute of Asset Management)
• Asset Management – An anatomy
• 39 Subjects in 6 Key Areas
o Strategy and Planning
o Asset Management Decision Making
o Lifecycle Delivery
o Asset Information
o Organisation & People
o Risk & Review
• PAS55
• ISO55000, ISO55001, ISO55002
• IAM Certificate
• Endorsed Assessment
• JA1011 (RCM)
Understanding the current Asset Management
Standards

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Asset Management Resources

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Total Life Cycle Management

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Life Cycle Cost Analysis

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Asset Management Process

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Reliability Growth Model
Derived from the DuPont Operational Excellence Model
Assessment
Optimised
Maintenance
Strategy
Structured
Work
Management
System
Disciplined
Defect
Elimination
Program
Cost & Risk
Optimisation
Effective Data Capture and Performance Management Systems
Complementary Workforce Development Program
Structured Documentation and Control System

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Key success factors
• Buy-in
• Skills
• Support
People
• Process mapping
• Procedures
• RACI
Process
• Maintenance
• Operation
• Optimisation
• Renewals
Tactics
• CMMS
• Document control
• Tech Library
• Asset Management
software
Systems
KPI’s

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Where do we focus?
“We cannot solve our problems with the same thinking we used when we created them”
- Albert Einstein
What your
Assets
require
What you
can afford

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• Continuing to do what you have always done will not provide the
outcomes you are looking for
• Best performers keep getting better
• Poor performers are falling further behind
Industry Benchmarks

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Investment in Asset Management

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Business capabilities and technology drivers
• 65% of best in class organisations have cross functional teams to improve risk and asset
performance
• 76% of best in class organisations use historical and real time data coupled with asset lifecycle plans
as actionable intelligence

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2 Research Papers delivered in 2012 by Aberdeen Group
1. Asset Management, Building the Business Case
2. Operation Risk Management
Aberdeen Group Research 2012

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94% of Energy Leaders apply Risk Management techniques to Asset Management / Maintenance
Energy Leaders have 4.3% unscheduled asset downtime
Aberdeen Group Research 2014

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Total Cost or impact to the business

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P-F Interval to determine task frequency
Acceptable Limit Set Point
P- Sensitive
Cond. Monitoring
P – Basic Cond.
Monitoring
P – Rudimentary
Inspection
F – Functional Failure
Asset/Component
Destruction
Time
Asset
Condition
P-F Interval
“P”: is the earliest possible
detection point of potential failure
(Inspection method dependent)
Recommended
Frequency
Potential Failure Curve

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Maintenance frequency optimisation

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Risk Based Component Analysis
Increased Risk Cost Reduction
0-10% $ 3,231,580
10%-20% $ 1,429,326
20%-30% $ 1,244,324
30%-40% $ 129,015
50%+ $ 24,648
Grand Total $ 6,058,895

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Asset Condition Assessment Methodology
• Mechanical, Electrical and Structural condition assessment
• Review existing major work lists including proposals for upgrades or refurbishments
• Review work order history focussing on completion of Preventative Maintenance
• Determine last repair/replace dates
• Review condition monitoring / test reports
• Determine Asset expected life based on operating context
• Determine remnant life based on production forecasts
• Visual inspections where required to determine obvious signs of structural distress
• Thickness / Crack testing (structural and pipeline)
• Corrosion analysis
• Estimate repair / replace capital estimate and timeline
• Determine upgrades where required
• Assign risk ratings to each asset / structure / equipment

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Renewal strategies

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Risk with component extension
• What risk are we exposed to by extending component lives??
• Condition Monitoring Strategies
• Unaffected by component extensions as condition determines replacement
• Ensure PF interval exceeds planning horizon
• Critical Spares Analysis to reduce risk
• Fixed Time Replacement Strategies
• Glasser Graphs give good indication of optimum replacement interval
• Quantifies decision in terms of $
• Operate to Failure Strategies
• No impact

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Condition monitoring
• Technique or technology determines the P-F interval (period of time between
detection and failure sometimes known as Remaining Useful Life RUL)
• P-F Interval must exceed the planning horizon (time to plan the corrective)
• If not, the failure will happen in an unscheduled fashion
• Having parts on hand will reduce the planning horizon HOWEVER holding parts
is expensive
• Critical Spares Analysis assesses the COST of holding versus the RISK of
failure
• An optimum holding reduces the overall RISK to the business

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Fixed time replacement
• Fixed time replacements are warranted when the cost or consequence of failure
overrides the cost of prediction, however
• The hazard rate must be increasing (risk), and
• The cost of doing the activity in an unscheduled fashion far exceeds that of
doing it in a scheduled fashion.
• Glasser’s graphs can be used to determine the optimum replacement interval
and the RISK cost to the business of extending component lives

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Risk based spares analysis

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Risk based spares analysis

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Optimising Shutdowns
Task Forecast Date Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-13 Mar-13 Apr-14 May-14 Cost Task Access time
Shutdown Activity 1 1/04/2014 * * 122,900$ 12
Shutdown Activity 52 25/03/2014 * * 115,000$ 10
Shutdown Activity 13 26/03/2014 * * 102,600$ 10
Shutdown Activity 20 1/12/2013 * * 76,200$ 8
Shutdown Activity 21 28/03/2014 * * 76,200$ 14
Shutdown Activity 15 30/11/2013 * * 40,000$ 10
Shutdown Activity 44 1/12/2013 * * 33,800$ 6
Shutdown Activity 45 20/03/2014 * * 33,800$ 7
Shutdown Activity 18 21/03/2014 * * 32,600$ 9
Shutdown Activity 48 1/05/2014 * * 22,150$ 4
Shutdown Activity 50 2/05/2014 * * 22,150$ 5
Shutdown Activity 4 1/03/2014 * * 19,580$ 6
Shutdown Activity 49 1/03/2014 * * 17,500$ 6
Shutdown Activity 51 25/03/2014 * * 17,500$ 4
Shutdown Activity 19 1/02/2014 * 9,200$ 7
Shutdown Activity 28 25/03/2014 * * 9,000$ 7
Shutdown Activity 29 28/01/2014 * * 9,000$ 7
Shutdown Activity 37 1/02/2014 * 8,160$ 8
Shutdown Activity 38 12/01/2014 * * 8,160$ 4
Shutdown Activity 43 28/12/2013 * * 6,945$ 6
Shutdown Activity 22 25/02/2014 * 6,600$ 6
Shutdown Activity 23 26/02/2014 * 6,600$ 6
Shutdown Activity 24 27/12/2013 * * 6,600$ 6
Shutdown Activity 25 1/02/2014 * 6,600$ 6
Shutdown Activity 26 1/03/2014 * * 6,600$ 6
Shutdown Activity 27 2/04/2014 * * 6,600$ 6
Shutdown Activity 2 1/02/2014 * 6,375$ 4
Shutdown Activity 3 19/02/2014 * 6,375$ 4
Shutdown Activity 39 25/03/2014 * * 5,820$ 3

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3 Take-away points
1. Current benchmarking in Asset Management indicates that
the best in class are investing money in Asset
Management.
2. It is imperative to apply risk management techniques to
Asset Management / Maintenance.
3. A successful Asset Management Strategy is one that takes
the whole organisation into consideration and is driven by
senior management / corporate level. Having a small team
in charge of and accountable for Asset Management won’t
work.

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Questions?