Transcript An Overview of Electricity Utility Asset Management

Electricity Utilities
and
Asset Management
Do you ‘Manage your Assets’ ?
17 October 2007
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None of the methodologies, concepts, frameworks, processes,
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Enabling business to succeed
Table of Contents
Introduction
Understanding the Problem
Introducing EAM for Utilities (PAS 55)
EAM Critical Success Factors
Case Study: PAS 55 Implementation
Industry Collaboration?
Conclusion
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Introduction
The Electricity Supply Industry in South Africa is faced with
several unique challenges which include inter alia:
An aging network
Rapid growth in demand and
geographic expansion
Unplanned outages from
overloaded infrastructure (limited
redundancy)
Constrained capital investment for
refurbishment
Higher cost to maintain compounded
by poor preventative maintenance
practices
Unavailability of qualified and
experienced resources
Restructuring alone will not solve these challenges! There is significant preparation
required by Electricity Distribution Utilities to converge to
“Best Business Practices”. . .
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Gradual move away from “Asset Driven”
Service Delivery pressures on Electricity Undertakings, compounded by negative
public perception has shifted the focus towards Customer Centricity:
Asset-Driven
Customer-Centric
Physical
Assets
Regulatory
Requirements
(NERSA)
Customer
Service
Customer
Service
Delivery
Billing and
Revenue
Collection
The result is an lack of focussed resource, budget and time allocation
to Physical Assets . . .
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Table of Contents
Introduction
Understanding the Problem
Introducing EAM for Utilities (PAS 55)
EAM Critical Success Factors
Case Study: PAS 55 Implementation
Industry Collaboration?
Conclusion
5
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Understanding the Problem
The National Government’s initiative to restructure the EDI [REDS]
will have a positive impact on service delivery in the country.
The impact will
be enhanced
by basic
principles such
as enterprise
asset
management
Enterprise Asset
Management
(EAM) was
introduced by
key Utilities in
the late 90’s
already.
EAM perceived
to be time
consuming,
complex to
manage and
require
dedicated
resources
The critical
resources are:
Skills (people),
Mature
practices
(processes),
information
systems
(technology)
and asset data
(asset content).
Due to
perceived
complexities,
not all the
Utilities have
adopted the
EAM practices.
This leaves room for improvement by implementing Asset
Management Practices
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Table of Contents
Introduction
Understanding the Problem
Introducing EAM for Utilities (PAS 55)
EAM Critical Success Factors
Case Study: PAS 55 Implementation
Industry Collaboration?
Conclusion
7
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PAS 55 Asset Management Standard
•
The Publicly Available Standard (PAS-55) has
been released by the British Standards Institution
(BSI),
•
The development of PAS-55 has been led by the
Institute of Asset Management (IAM) - in response
to the demand from industry for a standard on
asset management.
•
PAS-55 is applicable to any organization where
physical assets are key or a critical factor in
achieving its business objectives and effective
service delivery.
•
PAS-55 which was launched in London in 2004
can be described as the definitive asset
management standard against which utility asset
management practices can be benchmarked
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PAS 55 - Defining Asset Management
Enterprise Asset Management is a pragmatic approach to managing
organisations assets, to achieve its strategic goals while providing tools for
making decisions which allow a utility to meet a required standard of service
in the most cost effective way.
Effective Asset Management is all about the optimisation of :
Life Cycle Costs:
Physical Assets:
Ensuring that
assets operate
at designed
parameters with
optimal, offnormal
operations.
Resources:
Maximising the
contribution from
those who
manage the asset
through review
and assessment of
physical and
personnel
performance
Optimising initial
and ongoing
investment to
extract
maximum
operating and
financial value
from the asset
over the
lifecycle
Risk:
Balancing
engineering,
operational and
financial risk of
the assets with
expected
return.
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Qualified Asset Management Benefits
The financial results of
the utility can be
improved due to the
extension of the useful
life of assets.
The technical
performance of the
network will improve due
to the improved planned
maintenance.
People will be more
productive as a direct
result of improved
planning and better
targeted Human
resource development.
The organizational
efficiency will increase
due to improved and
optimized business
processes.
Decision making will be
improved because
better information will be
available with respect to
infrastructure, people
and processes.
Cost of maintain network
assets will decrease over
time, also resulting in an
much more effective
workforce.
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Utilities does not only have physical assets…
•Human Assets:
motivation,
communication, roles
& responsibilities,
knowledge,
experience,
leadership, teamwork
Customer Asset:
Customer Information,
CRM, Billing & Revenue
Collection,
Outage Management
Human
Assets
Customer
Financial
Assets
Physical
Assets
Intangible
Assets
Business Context:
Industry restructure objectives,
Objectives
Policies
Regulatory requirements
Performance & Risk
Information
Assets
•Intangible Asset:
reputation, image,
morale, constraints,
social impact
Business
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•Financial Assets:
life cycle costs,
capital investment
criteria, operating
costs
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•Information Assets:
condition,
performance,
activities, costs &
opportunities
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PAS 55 compliance covers all aspects of AM and
should be the reference for any AM Programme
• Central to PAS 55 compliance
lies the implementation of a
comprehensive Asset
Management System:
• PAS 55 is not prescriptive in
terms of how Asset
Management should be done,
it is however rigid in terms of
what should be covered within
the Asset Management
environment.
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Asset Management System Elements
5. Management
Review
4. Checking and
Corrective Action
ASSET
MANAGEMENT
SYSTEM
2. AM Info, Risk
Assessment and
Planning
3. Implementation
and Operation
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1. Policy &
Strategy
<Insert Date>
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Table of Contents
Introduction
Understanding the Problem
Introducing EAM for Utilities (PAS 55)
EAM Critical Success Factors
Case Study: PAS 55 Implementation
Industry Collaboration?
Conclusion
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Critical Success Factors
Applications:
o ERP Systems (FI, CO, MM)
o EAM Systems
o Outage Management
o Network Management
o GIS
o CIS & Billing
Unique EAM Roles:
oAsset Owner
oAsset Manager
oAsset Operator
3. Technology
1.
People
Management Information:
o Capital Investment Decisions
oLife Cycle Analysis
oAsset Performance
oAsset replacement vs
maintenance
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Hardware:
oNetwork Infrastructure
oServer Virtualisation
oEnterprise Application Integration
oData Warehousing
oBusiness Intelligence
oAdequate IT Support
2.
Process
4. Information
Data:
o Information Management
Lifecycle
oAs Built (equipment)
oMaintenance history
oCondition monitoring
oRoot Cause Analysis
oPreventative Plans
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Defining distinctive Asset Management Roles
Asset Owner
• Assess the South African regulatory requirements and influences,
• Develop a investment strategy based on geographical supply demand
• Perform an asset, financial and operating performance analysis.
• Establish and manage asset valuation and acquisition methods
• Perform market, economical and regulatory analysis
Asset
Manager
• Develop asset strategies, and optimization plans
• Optimize capital allocation through long term capital planning
• Ensure regulatory compliance and improvement actions to this effect
• Perform full life-cycle financial and operational analysis
• Contact and risk management
• Develop asset standards and specification – data specifications standards
• Macro work planning through prioritization
• Real-time fact-based decision making, based on accurate asset performance data
• Manage technology enablement and information analysis
Asset
Operator
• Conduct effective workforce scheduling and deployment
• Manage construction and maintenance project management
• Work practice design, deployment and monitoring
• Materials sourcing and inventory management
• Replicability and standardisation of network assets.
• Budget management and analysis
• Labour relations
• Third-party interface and outsourcing of operational activities
• Effective application of Technology solutions, data collection and maintenance
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Table of Contents
Introduction
Understanding the Problem
Introducing EAM for Utilities (PAS 55)
EAM Critical Success Factors
Case Study: PAS 55 Implementation
Industry Collaboration?
Conclusion
23
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PAS 55 assessment
PAS
55
4.1.0
4.2.0
4.2.1
4.2.2
4.3.0
4.3.1
4.3.2
4.3.3
4.3.4
4.3.5
4.3.6
4.4.0
4.4.1
4.4.2
4.4.3
4.4.4
4.4.5
4.4.6
4.4.7
4.5.0
4.5.1
4.5.2
4.5.3
4.5.4
4.6.0

Section
General Requirements
AM Policy and Strategy
Asset Management Policy
Asset Management Strategy
AM Information, Risk Assessment & Planning
AM Information Systems
Risk Identification Assessment & Control
Legal, Regulatory & Statutory
AM Objectives
AM Performance & Condition Targets
AM Plans
Implementation & Operation
Structure, Authority & Responsibility
Training Awareness & Competence
Consultation & Communication
Documentation
Document & Information Control
Operational Control
Emergency Preparedness & Response
Checking & Corrective Action
Performance & Condition Monitoring
Failures, Incidents, Non-Conformance & Actions
Records & Record Management
Audit
Management Review & Continual Improvement
PASS
Score
EskomAssessment
Distribution PAS
55 score
4.1.0
4.6.0
Understanding
4.2.0
4.5.4
4.2.1
4.5.3
4.2.2
4.5.2
4.3.1
4.5.1
4.3.2
4.5.0
4.3.3
4.4.7
4.3.4
4.4.6
4.3.5
4.4.5
Fig 1
4.3.6
4.4.4
4.4.3
4.4.2
4.4.1
Common issues resulting from a PAS 55 assessment
o
o
o
o
o
o
Risk Management of Assets is not integrated
Human Resource Shortage in critical skills
Performance measures are at system level and not asset level
No evidence of systematic management review
No AM Policy and Strategies to align and coordinate the business
No Life Cycle approach on maintenance
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Typical Approach to EAM Roll-out
Data Independent Items
Data Dependent Items
Assess ALL
Data
Initiatives
Expand and Consolidate ALL Data Projects under ONE integrated
NATIONAL Data Programme
Resource
Capacity
&
Capability
Vision,
Strategy,
Policy
Define
and
Implemen
t Roles
2
Data Specific Items
Define Focussed
New Data
Initiatives
Develop
Data Map
0
Quantify and
Communicate Data
Impact at Practical
Level
Identify Gap –
Data Needed
Data Available
AM Based
Data Spec
4
Continual
Improve
Training
Processes,
Standards and
Procedures
Develop Decision Support Tools
Risk
Management
Methodology
Risk Mgt
Process
6
8
10
12
14
Link Asset
Risk to
Investment
s
Optimise
OPEX and
CAPEX
16
Measure and
Report Asset
Performance
Integrated Risk
Balancing
Framework
18
20
22
24
26
Review AM
Practices
28
30
32
34
36
38
40
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Table of Contents
Introduction
Understanding the Problem
Introducing EAM for Utilities (PAS 55)
EAM Critical Success Factors
Case Study: PAS 55 Implementation
Industry Collaboration?
Conclusion
26
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Embrace the EDI Principles – Use opportunities . . .
• There are pockets of excellence in SA EDI that can be leveraged to be
benefit of all
• Huge amount of investment is already made in Asset Management
Systems – has reached Maturity and Scalable - why recreate the wheel?
• If you don’t have the Capacity, nor the Budget, to put an effective AM
System in place, why not “outsource” the asset manager and operator
roles – it is generally accepted practice internationally?
• Industry level collaboration on EAM practices through the Wires Business
Committee is possible?
• Establishment of a EAM Centre of Excellence and/or Shared Service
through the Industry association?
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Conclusion
• Don’t wait – start now: EAM is a recommend solution to adequately
prepare and reach EDI restructure objectives
• Consider a balanced approach, between “Asset Driven and Customer
Centric”
• Your Customer is ALSO an Asset!
• PAS 55 is an internationally accepted EAM Practice, publically available.
• The critical success factors dedicated roles, defined processes, within
information systems maintaining accurate data.
• Leverage pockets of best practices in SA Utilities to the benefit of all
though a industry association / shared service / COE?
• Consider PAS 55 as an industry standard for AM practices in South Africa
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