kbc ioe webinar - iso 55000 - asset management

© 2015 KBC Advanced Technologies plc. All Rights Reserved.

ISO 55000 – Asset Management A Partnership Strategy for Operational Excellence

KBC Webinar 18 September 2015

Our Speaker Today

8/28/2015 PROPRIETARY INFORMATION 4

Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to the organisation > How KBC can help companies achieve

certification?

8/28/2015 5 PROPRIETARY INFORMATION

KBC Corporate Profile Leading Independent Oil and Gas Consulting and Technology Company

KBC Office Locations

People

Methodologies

Technology and Tools

Our Advantage

Traditional Industry Focus


Global Client Base

8/28/2015 7

7

Aramco Asia, China Bangchak Refinery, Thailand Binh Son Refinery, Vietnam BP, Australia Caltex, Australia CNOOC, China Cosmo Oil, Japan Formosa Petrochem, Taiwan FREP, China Fuji Oil, Japan Hindustan Petroleum Corp. Ltd, India Idemitsu Kosan, Japan Indian Oil Corporation, India InterOil, PNG IRPC, Thailand JX Nippon Oil & Energy, Japan Mitsui & Co, Japan Pertamina, Indonesia PetroChina, China Petron, Malaysia and Philippines Petronas, Malaysia PTT, Thailand PTTES, Thailand PTTGC, Thailand Samsung Total, Korea Santos, Australia Siam Cement Group, Thailand Sinopec, China SK Corporation, Korea S-Oil, Korea SPRC, Thailand Singapore Refining Co, Singapore Sumitomo Chemical, Japan Thaioil, Thailand TonenGeneral, Japan

ADM , Europe BP- Nerefco, Netherlands ConocoPhillips, UK Engen, South Africa Essar Oil , UK GALP, Portugal Grupa Lotos, Poland Hellenic Petroleum, Greece Holborn Europa Raffinerie GmbH, Germany INA, Croatia Koch, Netherlands KPRL, Kenya Kuwait Europort, Netherlands Murphy Oil Corporation, UK Oil Planning Service, Africa Oman Oil RPI, Oman OMV Aktiengesellschaft, Austria PCK, Germany Petrogal, Portugal PetroPlus, France PetroSA, South Africa PKN Orlen, Germany Raffineria di Milazzo, Italy Rompetrol, Romania Sasol Synfuels Ltd, South Africa Slovneft, Russia Total, France Tupras, Turkey Vitol, UK

Alon, USA Ancap, Uruguay BP, USA Coastal , USA ConocoPhillips, USA Ecopetrol (Reficar), Colombia El Paso, Aruba ENAP, USA Flint Hills Resources LP, USA Hess Oil Trading Company, USA Hovensa, St Croix Husky Energy, Canada Irving Oil, Canada Lyondell-Bassel, USA Lyondell-Citgo, USA Marathon, USA Mobil, USA National Oil Company, South America NCRA, USA Nova Chemicals Corporation, Canada Parkland Income Fund , Canada Pemex, Mexico Petrobras, Brazil Petro-Canada, Canada Petroecuador, Ecuador Refining Process Services, USA Rio Tinto, Americas Sinclair, USA Suncor, Canada Tesoro Refining & Marketing Co, USA Texaco, UK

PROPRIETARY INFORMATION


certification?


ISO 55000 is Focused on Asset Management…

Asset management (value adding focus) 1. Realise value throughout the asset’s life cycle stages 2. Coordinated asset-related decisions, plans, and activities 3. Risk based approach

Asset management system 1. Set of interdependent elements of an organisation 2. Establishes asset management policy and objectives 3. Processes for the development, coordination, and control of asset

activities over different life cycle stages 4. Aligned with the strategic goals of the organisation (organisational

behaviour focus)

ISO 55000 Asset Management Standard To provide a framework that specifies and links life-cycle asset

decision making and actions to the strategic goals of the business.


..but looks beyond the physical asset

1. Asset management does not focus on the asset itself, but on the value that the asset provides to the organisation

2. Value can be tangible or intangible, financial or non-financial

3. At no point does ISO 55000 mandate the most reliable assets or the greatest level of production

Source: ISO 55000 It’s All About the Value Asset management system framework

Managing the Organisation

Asset Management

Asset Management

System

Asset Portfolio

Coordinated activity of an organisation to realise

value from assets

Set of interrelated or interacting elements to

establish asset management policy, asset management objectives

and processes to achieve those objectives

Assets that are within the scope of the asset

management system


ISO 55000


Asset Management Overview Defines principles and terminology of an asset management system

Asset Management System - Requirements Describes the elements of an asset management system

Asset Management System - Application Provides “guidelines” for the design and operation of an asset management system

ISO 55000

ISO 55001

ISO 55002

Content of Standard > Context of the organisation: Understanding the

organisation, stakeholders and scope of the AMS

> Leadership: Demonstration of leadership and commitment

> Planning: Actions to address risk and opportunities for AMS

> Support: Resources, competence, communication

> Operation: Operational planning and control, MOC, outsourcing

> Performance Evaluation: Monitoring, measurement, analysis and evaluation (audits and reviews)

> Improvement: Non-conformity and corrective action, preventive action and continual improvement


ISO 55000 was launched in Jan/2014

2004 2010 2012 2014

1. UK Institute of Asset Management with British standards Institution developed PAS 55

2. First public specification for optimised management of physical assets

2008

3. PAS 55 updated

4. Developed by 50 organisations from 15 industry sectors in 10 countries

6. ISO 55000 formally launched

5. International Standards Organisation (ISO) accepts PAS 55 as the basis for development of the ISO 55000 series of international standards

Evolution of the development of ISO 55000



certification?


Drivers for Improved Asset Management

Fukushima Nuclear Accident

Event > Occurred on 11 March 2011 > Consequence: Nuclear meltdown of 3 out of 6

nuclear reactors > No fatalities but 300,000 people evacuated > Trigger events: magnitude 9.0 earthquake and

tsunami

Asset Management Findings > Plant was incapable of withstanding earthquake and

tsunami > It failed to meet the most basic safety requirements,

such as assessing the probability of damage, preparing for containing collateral damage from such a disaster, and developing evacuation plans


Drivers for Improved Asset Management - cont’d

Deepwater Horizon Oil Spill

Event > Occurred on 20 April 2010 > Explosion and sinking of the Deepwater Horizon

oil rig in the Gulf of Mexico > 11 people were never found > A sea-floor oil gusher flowed for 87 days totaling

about 4.9 million barrels of crude oil > Fines = $4.5B; Criminal & civil settlements

>$42.2B plus massive environmental impact

Asset Management Findings > Defective cement on the well causing wellhead blowout > Series of cost-cutting decision and an insufficient

safety system


Texas City Refinery Explosion

Event > Occurred March 23, 2005 > HC cloud explosion at the Isomerisation Process

Unit > Killed 15 workers; 170 injured

Asset Management Findings > HC originated from liquid overflow from the blowdown

stack after overfilling and overheating of the tower contents.

> Numerous technical and organisational failures at the refinery and within corporate BP



Lac-Megantic Derailment

Event > Occurred on July 6, 2013 > An unattended 74-car freight train carrying crude

oil rolled down a hill and derailed > Result: file and explosion of multiple tank cars > 47 people died; more than 30 buildings

destroyed

Asset Management Findings > Identified 18 distinct causes and contributing factors,

some are: − Mechanical problems not remedied − Independent air brakes leaked − Insufficient handbrake and improper test method − Train left unattended on hill − Weak safety culture



8/28/2015 19

Sayano-Shushenskaya

Event > Occurred on 17 August 2009 > Capacity 6,400MW > Flooding of the engine & turbine rooms and two

711 MVA electric generators exploded > 76 people died > Equipment damage cost alone = $1.2B > Economic impact to Siberia

Asset Management Findings > Postponed turbine maintenance while waiting for

funding > Primarily caused by vibrations of turbine No. 2 which

led to fatigue damage of the turbine mountings > The design life of the Unit 2 turbine was reported as 30

years by the manufacturer. On the date of the accident, the age of the Unit 2 turbine was 29 years and 10 months

PROPRIETARY INFORMATION


Drivers of ISO 55000 adoption

> Growing awareness of reputation risk due to prior major asset integrity failures

> Opportunity to assess and enhance existing AMS > Public domain discussion suggests three further drivers of adoption

− Regulatory agencies leveraging the standard for compliance purposes

− Insurance risk / premium assessment − Interest by law firms given implications for M&A due diligence or

legal liability

Besides the business… Regulators, insurance and M&A-DD are other drivers for ISO 55000



certification?


Are you ready for ISO 55000?


Getting started Implementation Certification Sustainability Find out about best practice asset management and why ISO 55000 makes good business sense

Discover how to implement an asset management system and the benefits to your business

Find out how independent certification and verification supports your asset management

Make sure that your asset management system continues to deliver the best for your business

• Self assessment • 2~3 week

duration • Readiness audit • 4 ~ 8 weeks

• Implementation Roadmap

• 3 ~ 12 months • AMS value

realization

• 3rd Party certification (IAM certified bodies)

• Periodic audits • Review of

processes implementation

4 1 2 3

KBC Approach

Sharing Goals: Enhancing client’s AMS Ensuring sustainable performance leading to ISO certification

Assessment Process A

D C

B


Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to an organisation > How KBC can help companies achieve

certification?


Benefits A company’s asset management system provides a structured approach using best practice methodologies to manage the lifecycle of assets in achieving set reliability goals and > Reduced risks associated with ownership of assets – anything from

unnecessary maintenance costs and inefficiency to accident prevention (explosions at gas plants for example)

> Improved quality assurance for customers/regulators – where assets play a key role in the provision and quality of products and services

> New business acquisition - stakeholders gain confidence from the knowledge that a strategy is in place to ensure assets meet the necessary safety and performance requirements

> Supports international business growth – demonstrating that the requirements of an internationally recognised asset management system are being met


Benefits/Cost Chart

Potential benefits ~ 5 to 20% reduction of Maintenance Budget


TIME

15 ~ 20 Months

6000 5000 4000 3000 2000 1000

0

US

$’00

0

Factors influencing benefits realisation

> Starting point > Understanding of goals > Management commitment > Speed of implementing recommendations − Staff motivation − Capability and availability of staff



certification?


KBC Operational Excellence


ASSET MANAGEMENT

Maintenance Strategy

Program Design

Implementation Plan

KPIs & Stewardship

Communication

Organisation

Risk Management

Work Screening Prioritisation Planning &

Scheduling

Work Execution Improvements

CMMS Optimisation

TA Work scope Optimisation Execution & Planning

Defect Elimination RCFA Tools & Training

PM & PdM Plans Risked Based Inspection

Critical Equipment Plans Asset Policies

Best Practice Implementation Plan
