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Integrity delivery through

Asset Management System

Standard AS 55001

Presented by: Ernst Krauss, CFAM

Date March 2015

Summary

Project delivery needs rework to become more effective

Integrity delivery needs to be part of Project delivery

Organisations can no longer afford Project failures at the scale experienced in the past

AS 55001 could provide a vehicle to achieve better project delivery, increase productivity, increase return on investment

Project delivery

Various studies show a low success rate of Projects

In Australia, approximately 32% of Projects are successful

Megaprojects >$ 2b have about 60% success rate globally

Project success only measured in terms of schedule and cost

Other success factors?

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Project Outcomes delivered

Governance

Pro

ject

Ma

na

ge

me

nt Understand Business Requirements

Integrity / Reliability / Production

Support functions

Inte

gra

tio

n F

un

ctio

n

Operational Readiness

Commissioning & Start up

Contracts and Suppliers

Delivery of Operational Facilities not Hardware alone

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Some facts All Projects are subject to change

- How managed

- How communicated

- How executed

How do operational requirements keep up with changes?

• How competent are Project personnel - Personnel selection on previous involvement

- Recognition of new technologies - Understanding of Operating context and requirements

• Management practices

- Interpersonal skills - Delivery of Hardware

- Balance of cost / schedule / ‘quality’

Factors Affecting Delivery:

On Time

- Delivery to schedule – highly visible

- Processes / Productivity

On Budget

- Control of Budgets– highly visible

- Change Control

Required Quality

- Inherent Integrity / Reliability Availability/Maintainability/ Supportability

- OPEX

Sustainability– the 4th Dimension

- Fully functional Assets

- People competency

- Functioning Risk / Integrity / Operating Management System

Advisian’s 4th Dimension:

On Time

On Budget Quality

Traditional Project delivery focus

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Asset Management Synthesis

Stakeholders

Leadership

Organsiational Objectives

Asset Management Objectives

Processes and

Enablers

Roles and Responsibilities

Decision Processes

Risk Management

Capability & Culture

Performance Monitoring / Improvement

Services / Commodities

Enable service delivery

Production / Integrity Assurance

Strategic Asset Management Framework

Service requirements and Objectives

Strategic Asset Plans Asset Management Plan Integrity Management Plan Capital Investment Plan Maintenance plans Asset retention planning Disposal Plan (including obsolescence Management)

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Integrity Management System

AS / ISO 55000 - the 7 requirements The Asset Management System It encompasses these elements: 1) Organizational context 2) Leadership 3) Planning 4) Support 5) Operation 6) Performance evaluation 7) Improvement

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AS 55001 support processes Systems Engineering

Acquisition processes and associated standards

Support analyses and logistics planning

Configuration management

Operations and Maintenance plans and processes

Continuous improvement processes

These processes describe a supportive delivery system that together with the risk, financial, organisational and other none technical requirements of the AS 55001 standard can result in the redefinition of effective project delivery

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Improved Process delivery

Benefits to Operations: • Improved Start up (reaching full production faster ) • Fully functional Organisation • Eliminate requirements to adjust organisation to suit issues • Clarity of roles, responsibilities and requirements to safely operate and improve • All systems and measurements in place that demonstrate Operational Integrity • Efficiently manage risk , cost, performance

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Integrity delivery through understanding all Operational Requirements

Manage Requirements

Requirements Management is concerned with:

Understanding the goals of the organisation and its stakeholders (or customers)

Transformation of the goals into functions and the constraints applicable to the development of Assets or Services

These directly link to the AS 55001 sections on context and purpose:

- Understanding the context of an organisation and

- Transforming strategic intent into tangible plans and actions

Integrity matters

Advisian 14

Integrity relevance

Safety / Risk management

Operations / Maintenance

Integrity boundary

Corrosion / condition

Activities and competencies

Plant control and limits of permitted operations

Make safe / SCE’s

Integrity Requirements Management

Provides the opportunity to –

Engage in a systematic approach extracting, documenting and organising integrity systems requirements

Define the integrity system, documentation, processes, organisational structures and responsibilities necessary to manage and demonstrate integrity of the whole production system form the start of the operation

Provide critical input into strategic and operational Asset Management Plans that chart the major activities, capital expenditure and OPEX plans to achieve efficiency in operations management

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Assurance through Requirements definition and auditing

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Projects delivering Requirements…

…provides benefits through -

Real value creation by linking risk, integrity, cost and performance capability of the deliverables and support systems

Avoidance of Value erosion by -

- Deliverables assurance (Stakeholder needs)

- Changes no longer obscure original intent

- Closer link with Stakeholders through regular communication and validation of achievements

- Integrity of project agreement and scope

All deliverables and outcomes identified during the project phase and are incorporated as operational structure into the Asset Life Cycle

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Shared view of managing Assets and Integrity

"If any one idea about leadership has inspired organizations for thousands of years, it's the capacity to hold a shared picture of the future we seek to create“ Senge “The fifth Discipline”

• Projects need to deliver to the Business requirements

• Project delivery needs to include Operations requirements

• Functional performance requirements provide guidance for expected outcomes during useful Asset life

Thank you for your interest Your questions???

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END