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Master in A s s e t M a ng e m e n t

Master in Asset management International Pasantia Coordinator Tutor Author : Ing. Marco Macchi macchi@polimi.it : Ing. Luca Fumagalli luca1.fumagalli@polimi.it : Ing. Sebastin Yez syanez@engineer.com

Fundaments: Asset life cycle. The assets associated at productive process have risks of no payback their investment values. The risks can to have causes related to the different stages of assets life cycle and no necessary shows their consequences at the same time, even often its consequences are shown past the earliest asset age during their operation and maintenance stage. An optimum management shall be concern an adequate cycle life estimation of equipments to get the right opportunity to replace the equipments and get the maximum Net Present Value (NPV), as its shown on attach fig. To concern an integral vision of asset management, since of the conceptual stage, its design, its manufacture, erection, start up and dismissing, is necessary to understand and apply different kinds of techniques and methodologies that allow to take the right decisions to maximize NPV during their cycle life. The choices that we have depend of different criteria adopted during the earliest stages of the assets life cycle, giving different behaviours of the total cost of the project. Lows standards at the beginning could be means high cost during the operation, maintenance or and anticipate prematurely equipment replaces.
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Master in A s s e t M a ng e m e n t

Scope of the work: Good Practices

The above concepts require applying a set of a Good Practices. The kind of matters depends of industries types. The Pasantia goal is to take practical reviews during technical interviews with manager of assets in those mentioned stages. To take a review of their practices verifying in own scenarios its achievements of assets management integral vision. For to undertake this work is necessary the most complete information that the professionals and the time available allow to have. To get the information, an strategic interviews plan must be considered. During the interviews shall be taken different kind of evidence and register of those practices. To get that goal it had been considered interviews with the followings enterprises: 1. STF S.p.A. / Magenta - Lombardia Sector: Design, manufacturing and built-up equipments for energy plants and high pressure and temperature vessels. 2. Rina S.p.A. / Genoa - Liguria Sector: Naval register, Industrial Certificated and Technical training. 3. Ansaldo Energy / Genoa - Liguria Sector : Italian energy generator. 4. Instituto Italiano de Soldadura / Genoa - Liguria Sector: Research, development and training on metallurgy manufacturing techniques, inspection, and procurement certification.

Schedulling: Visit Program The visits program will take about 20 days long during September 2007.

Resume: Final Report A complete report of the good practices found at interviews shall be prepared to discuss with tutor and coordinator of this program.

SYD/syd - sep. 2007

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Master in A s s e t M a ng e m e n t

Visit Report Enterprise Contact Position : STF S.p.A. / www.stf.it : Ing. Michele del Vecchio / mdelvecchio@stf.it : Quality Control Manager.

History The STF group has an industrial complex with 160.000 m2 of total covered areas and 32.000 m2 of covered manufacturing area, located in Magenta town, 25 km. near to Milano, Lombardi Region. 1 1.. 2 2.. 3 3.. 4 4.. 5 5.. 6 6.. 7 7.. 8 8.. 9 9.. H He ea ad dq qu ua arrtte err E n g i n e e r i n g Engineering R Re es se ea arrc ch h& & D e v e l o p m e n t Development P Pu urrc ch ha as siin ng g P Prro ojje ec ctt m ma an na ag ge em me en ntt M Ma ac ch hiin niin ng gS Sh ho op p P Prre es ss su urre eP Pa arrtts sM Ma an nu uffa ac cttu urriin ng g H He ea att T Trra an ns sffe err P Pa arrtts sM Ma an nu uffa ac cttu urriin ng g.. S m Su urrffa ac ce eT Trre ea att me en ntt H He ea att T Trre ea attm me en ntt S t o r a g e Storage

1 1..--

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Main products and services STF offer a complete set of services from design, development solution, up grades, modifications. In this stage there are a close approach between client, STF and technical reference advisor. STF has related agreement with different entities, ASME, Foster Wheeler (American Boiler manufacture licence). Its agreement allows to STF to have under control the main concept standards for different applications. Those standards provide useful criteria about performance equipment and know-how for operation and maintenance activities. Under any circumstance of changes, to up grade capacity or efficiency this standard give the reference for make decision, in order to choice the right new materials, new security advices or new dimension or equipments capacity.

Main markets The STF target markets are industrial boilers, gas turbine, heat recovery and steam generator. In order to reach this target they are owner of specific technology and license for design, develop, manufacturing, erection and start up specific equipment and whole installation for energy plants project.

Organisation In plant STF has about 200 professionals and technicians whose working directly. In the different site where STF has their project, is working about 1.000 employees. The headquarters has a complete installation to satisfy all client requirements. STF has an engineering department for study new proposal. But their main objective is to solve manufacturing and construction problems to the production line inside STF and to the team project on client site. Purchasing and project management provides materials delivery control in accordance with specifications. They make the first control for workshop order traceability.

Production department involves different process into the site : - Machinery shop: here works qualified welders. They could obtain and maintain its qualification up-grade and related exclusively for specific process. Even some qualifications are validated for a specific project life only in order to guarantee full quality achievement. Normally the welders doing the first steps into the join parts. - Pressure Parts manufacturing: The prepared parts are assembly and doing the last welds steps. - Heat Transfer manufacturing: As previously described for the thermal equipments in this case.

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Master in A s s e t M a ng e m e n t

Surface treatment: Last one manufacturing process to get certain hardness in specific parts. Storage: Place to keep stand by intermediate parts o finals pieces to be delivered. Quality control: This function across the entire organisation to get specific control inside the process and take corrective tasks immediately when they happen. The main function is to take all register in each step of the process, each shift, including all workers that made any tasks on the pieces. These kinds of information allow guarantee the equipment under the design specifications. In addition, Quality Control Department is an internal controller, but also is the entity who gives response any questions of the client controller. In some cases, the project the participation of expert considers, such as an ASME inspector.

Best Practices Standards For design process STF use ASME, API and UNI EN its allows keep safety standards. To control the manufacturing process, STF apply ISO 9000 standards, its allows keep under control all design parameters Quality Plan To keep under control all design parameters and task registers STF use a master plan PCQ (Plan of Control Quality) where its belongs all necessary reference for planning works, verified welders qualifications and procedure certifications. Its systems allows to know in any moments all data concern to the original material source, workers, humidity control and other parameters for traceability. Fabrication Drawings Engineering department provide all specification for complete the standards. Its include reference for each welding and assembly procedure into the unassembled drawings.

Procedure Certifications Its belong to PCQ as Quality Control and provide specification and testing for welding procedure in order to guarantee to keep design parameters. Welders Qualifications Also belongs to PCQ as Quality Control and verify the welders ability for doing specific task, find the root into the join pieces or finish the last step in different position. Non Destructive test NDT allows to keep under control all job development, doing Ultrasonic Test, Magnetic Particles, Penetrate Liquid, Ionized Radiation and Hardness Measurement. Have a special consideration to affected zone area (AZT) because is the critical point and a wrong job will produced high failure risk.

Traceability / stampillado All the single parts and components of the equipment in manufacturing process are identified by metal mark, from the material reception to the each one of process step.The

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Master in A s s e t M a ng e m e n t

system allows guaranteeing for the clients the materials quality used for built up the equipments are under engineering specifications.

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Master in A s s e t M a ng e m e n t

Assets reference STF have concern into the earliest age of assets. Since that their final client has the project in conceptual terms gives a first input to develop specific equipment under their own standard requirement. Those standards are defined by authority requirements, environmental request or business needs. In some case the state-of-art made a contribution to determinate this kinds of matters. In this age (project & development) technical-economical evaluation are made in order to determinate the return investment and the asset life expectancy. This period must be keeping on the cycle life. For that reason many important details must be controlled in order to get all design parameters during the manufacturing equipments. This is possible to obtain if is apply a strict quality control systems. If all control are been applied then is possible reduced de risk of failure for assembly or erection reasons, given more capital payback of the investment because the asset will be keep on service.

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Photograph reference.

Fig. 1 : Nuclear plant reactor body for France site. Top view.

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Fig. 2. Nuclear plant reactor body for France site. Side view.

Fig. 3. : Reactor shell machining.

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Fig. 4. : Reactor cup under the quality process control.

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Fig.5: Heat exchanger of gas Turbine in assembly and tubes positioning.

Fig. 6: Orbital welding for Heat exchanger of gas Turbine.

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Fig. 7. : Multi welding machine. It register voltage variation in order to get all the information about the task doing out of the range allowed during the each step.

Fig. 8. Metal mark application for later recognize task during the trace applications.

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Visit Report Enterprise Contact : Rina S.p.A. / www.rina.it : Ing. Danielle Giorgi / Head of Operating Control Section / daniele.giorgi@rina.org Ing. Andrea Bombardi / Project Manager / andrea.bombardi@rina.org Ing. Alfredo Traverso / Transport&Log. B.U.Technician / alfredo.traverso@rina.org

History Rina is a Naval Registry Agency that has operations since 1861, founded as a no profits enterprise. The naval survey services are the main offer field into their wide range of services. They covered whole the world given support to the navies at the principals ports of each country. Rina has subsidiary divisions as a Certification and Industrial division, Rina Industry and Rina SOA - Social Operation Accountability.

Main products and services As a Rina Certifications and Industrial Division provide various types of services as the followings: - Industrial process Certifications. - Products certifications. - Welding procedures Certifications - Welders qualifications. - Training As a Rina Industry provide services in all stages of a project on course: Engineering: o o o o Procurement: o o o Construction: o o o Installation and Operations: o o o o o Marine operations. Installations procedures. Assistance during commissioning. Preparation of maintenance plans. Assistance during maintenance.
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Certification / verification. Design appraisal. Risk analysis and Risk Assessment. / HAZOP studies. Consulting engineering services.

Suppliers qualifications. Review of specifications and inspection plans. Inspection, testing an expediting.

Quality assurance and control supervision. Site inspection during construction Health, Security and environmental services.

MAM
Master in A s s e t M a ng e m e n t

Main markets Energy & Process Industry Infrastr.& Construction Transport & Logistics (*) Services Health Sector - Food Government Financial Services : : : : Oil & Gas sites and installations and Power Generation Plants. Productive plants. Building and constructions companies. Owners, operators and suppliers Railways products and services.

: Foods factories, delivery and commercialisation. : Public authority : Banks, assurances and brokers entities.

Organisation (*) The Rina organisation is very wide and complex systems and will cover more than the work scope of this paper. For that reason, a selection of representative one sector as a Transport and Logistic and its specific market of the train and railways systems were made. RINA was notified by the Italian Ministry of Infrastructures and Transport as a Notified Body to assess the conformity to the Technical Specifications for Interoperability (TSIs) of subsystems and constituents both in the high-speed rail sector (Official Gazette no. 207 of 4 September 2002, according to decree 299/01 implementing Directive 96/48/EC) and in the conventional rail sector (Official Gazette no. 169 of 22 July 2005, according to decree 268/04 implementing Directive 2001/16/EC), for the following subsystems: Infrastructure Energy Control-command and signalling Operation Rolling stock Maintenance Telematic applications for passenger and freight services

Best Practices As a mandatory requirement the Italian railways industry needs to adapt their infrastructure to become compatible into the European railways networks. In order to help to complete this process conversion, Rina had become developed different service. These services will allow establishment the new technical standard and keeps the safety parameters for the industry. Thus, the train industry in Italy will keep their position and competitive in the market, especially in the high velocity service, facing passenger and freight transportation industry.

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Therefore, the alignment to technical standards (STI) defined for the high-speed trans-European rail system contributes to make the international rail transport service simpler, more performing and appealing for the travellers. It makes simpler to the producer in the rail sector selling their products out of the national market. It allows the producers getting higher scale economy, limiting the need of personalisation to adapt products to single national rules, overtaken by international standards. The economic benefits obviously spread to the managers of subsystems. As any industry, trains and railways operations have it owns risks. The control of this risk means a variety matters concern with the passenger and freight security. In a resume it can reviews some projects for achievement the governmental requirements.

Verification of Interoperability o ITALIAN RAILWAYS NET (RFI) / Roma Napoli High velocity line Energy subsystem and infrastructures. ALSTOM (Railways information solutions) / Mobile terminal and radio communications on board. LUCCHINI SIDERURGICAL / Rout components.

Functionally and Security Assessment. o RFI (Italian Railways Net) / Functional assessment of electrical devices provided by Alcatel. LTF (Lyon Turine Ferroviaire) / Conformity Assessment of the High Speed line project. ANSALDO (Railways Signs) / Safety assessment of encoder for the Belgian Railways. ANSALDO (Transporti Sistemi Ferroviari) / Safety Assessment of the track side signalling system for Piscinola Aversa centro line.

o o

Rolling stock homologation process support. o RFI CESIFER consortium / Vossloh G2200 BB ans Mak 1000 BB Diesel- Hydraulic locomotives and Stadle GTW 2/6 Diesel Multiple unit : Brake system conformity assessment for technical admittance on RFI networks.
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GENERAL MOTORS / Diesel electric locomotive class 66: support for technical admittance on RFI networks.

Test and inspection. o ANSALDOBREDA / Technical inspection on bogies retrofit for MetroRoma Line and ATM Milan Sirio Tramway. OFFICINE DI ARQUA 96 / Conformity assessment of front ends technical test for Rhilmms wagons on behalf of TrenItalia.

Technical support. o ERA (European Railways Agency) / Survey of good practice models in the across acceptance of rolling stock through the experience of acceptance of Class 66 freight locomotives in EU member states in partnership with Lloyds Register Rail (UK The Netherlands) ALSTOM Ferroviaria Savigliano / Training course on design methodologies related to Life Cycle Assessment (LCA) an Environmental Product Declaration.

Management systems certifications.

As support and certification service resume, it can mentioned services in different stage of the railways chain supply as Railways Operators, Railways suppliers, Mass Transit Operators, Logistic Operators. Considering the mass transit sector, Rina has recently developed new certification schemes concerning some key issues for mass transport operators: Maintenance Services Certification: Following the guidelines developed in cooperation with (Italian Maintenance Association).

Performance indicator.
0.35 0.3 0.25 0.2 0.15 0.1 0.05 0 1992 1993 1994 1995 1996 1997 1998 1999 2000
FS (Italia) SBB (Svizzera) DB (Germania) RENFE (Spagna) SNCF (Francia)

Indicatore relativo alla mortalit per incidenti tipici UIC


(morti / milione di treni km)

Considering that modifications systems could cause no desirable effects, it been necessary to have under control the main performance service indicator during the update process. Today, before 2002 date when changes began - is not available the last results of that indicator, but it shows here as knew target of the industry.
(Source: Rina Transport & Logistic)

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Assets reference As a provider services, Rina have not direct influence over the operation decision on the different assets ages of railways business, but its support make easy to take the best choices for the assets managers of those customers companies. - Standards Homologation Considering that the homologation is a mandatory from the government requirements, market and security points of view, it must be have nearby all technical requirements in order to achieve a success adjust process and its maintenance along the assets lives cycles. - Equipment Reliability Assurance In order to obtain the high reliability standard of the industry, the different kinds of tests for technical admittance have a massive importance. The fidelity of information since the raw materials are income to process line with their adequate reception and the system to support the traceability assists to assure the maximum reliability require. Even in the unfortunately cases that necessary make an exhaustive examination for serious injure to the passengers, equipment o installations, this support give an important information to keep assets condition under the continuous improvement. - Maintenance systemization In fact, Rina no have several practical experience about maintenance programs, but is in course the execution of the certificated methodology for allow to the different railways operators keep in maintenance the technical requirements and reliability of the systems. Do the right thing at the best opportunity in the best way. - High Security Standard achievement Providing the best technical standard concern in the all ages of the asset life cycle will allow to the owner to have best reliability performance during railways and equipments operation. This reliability level brings a security operation without unwanted failures, convoys collision, freight losses or death passengers, keeping under control the consequences during maturity assets age. The graphics shows above give a performance indicator of different policies and strategies applied during the cycle life ages. In order to have measure results during of change manage process required by new normative, this indicator must be maintain or improvement. - Competitiveness maintenance Considering all European ground transport market, the train system (passenger and freight) has strong competitors in bus and truck industry. For that reason, the train industry needs improvement the travels and deliveries times. Make the train systems homologation between different Europeans countries allows use high speed train system without transfer times. Certainly this competitive advantage provides at least its preservation in the market. - Service improvement The transport response time means the most important factor that the customers valorised, and then all technical improvement in this way will involve a service improvement.

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- Update opportunities The investments on improves involves an important amount of resources in a normal situation and a lot of them are postpone. With the mandatory requirements is more likely that improves take place. Then, this new requirement it becomes in an opportunity for assets update or retrofit.

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Visit Report Enterprise Contact : Istituto Italiano della Saldatura / www.iis.it : Ing. Stefano Pinca / stefano.pinca@iis.it Ing. Giancarlo Canale / Giancarlo.canale@iis.it

History The Italian Institute of Welding (IIS) is a non-profits private organization, set up in 1948 as an association of individual and legal persons, whose main tasks are research, training, certification and technical assistance in the field of welding. The IIS is provided with the most modern equipment which is continuously updated, with the aim to attain the best qualitative results. In 1988 its seat was moved to the actual building in Genoa, where technical departments and laboratories are gathered in an area of 11.000 sqm, 7.500 of which are covered. The Italian Institute of Welding holds the Secretariat and the Presidency chair of the UNI Welding Commission and in this capacity it participates, with right to vote, to the works of ISO (International Organization for Standardization) and of CEN (Committee European de Normalisation). During its more than fifty years activity, the Institute actively contributed to the formulation of an huge amount of technical standards, taking profit both from its study and research experience and from the practical know-how coming from its technical assistance activity.

Main products and services: The IIS offers the followings specialized services and their products to the industry: Welding and NDT procedures o EN 288 / EN ISO 15600 o ASME BPV Code Section IX o AWS D.1.1 o CEN TC 138 W.I.091 Quality o o o o management systems ISO 9001:2000 ISO 14001 EN 729/ISO 3834 according to the EWF schedule and to the EA 6/02 guidelines EMS schedule, EWF welding environment

Products o Simple pressure vessels (Dir.87/404/CEE) o Pressure systems (Dir.97/23/CE) o Fabrication materials (Dir.89/106/CEE) o Low voltage (Dir.73/23/CEE) o Welding consumables
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Assistance and information o Qualified and updated assistance on the progress status of standardization works at CEN and ISO. o Information on the standardization trends in the different specific welding and allied techniques sectors, for a better orientation of design, organization and production choices.

Main markets The main activities are focuses on these specific industrials areas: Education and training. Research and documentation. Certifications and approvals. Laboratory analysis and tests. Engineering. Technical assistance in welding Diagnostics and non-destructive tests. Standardization. Publications and technical events.

Organisation The Institute has a staff of around 190 people, of whom about two thirds are graduate or nongraduate engineers. The IIS is characterized by its multidisciplinary and versatile structure, made-up of operative divisions, each specialized in its competence sector and offering a global service: from design to fabrication and final test of welded structures, in Italy and abroad.

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Best Practices The IIS Engineering Division offers industrial services covering two activity sectors; Design and Calculate, and Reliability evaluation of plants, components, materials.

By means of the most advanced numerical calculation software in the field of metallic constructions, pressure equipment and pipes (ANSYS, AUTOPIPE, AUTOCAD, etc.), the Institute supplies services including design, calculation verifications, residual life evaluations in all working conditions (i.e. fatigue, creep). The Engineering Division can also supply Fitness for service and collapse risk evaluations, by means of internationally recognized software like Crackwise TWI (according to the BS 7910 standard) and VCESage (according to API 579). Materials behavior studies are carried out related to the working conditions and choice of materials criteria are formulated. Risk analysis of plant components is carried out according to the API 580-581 standards (Risk Based Inspection) including the definition of inspection plans and programs for pressure equipment, piping and storage tanks. IIS is member of API-RBI User Group and works with the Official software E2G-API 581.

Design and calculation

Pressure equipment (dangerous vapour and fluids) Oil and gas pipelines. Storage tanks. Metal structures. High temperature applications (creep) Low temperature applications (fracture mechanics and fragile cracking) Declaration of new projects, modifications, repairs. Expired life evaluation of components working in creep conditions

Expired life evaluation Reliability of plants components - materials Risk level evaluation and inspection programming based on risk, according to API 580-581 (R.B.I Risk Based Inspection) standards Fitness for Service analysis Reliability of oil and gas pipelines Consultancy, assistance, verification and validation of pressure equipment use and maintenance manuals, according to Dir. 97/23/CE (PED) HAZOP studies and risk analysis

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Master in A s s e t M a ng e m e n t

Compatibility evaluation of materials towards working conditions Material selection Failure analysis in cooperation with the Institutes laboratory including determination of breaking, collapse, malfunctioning causes Corrosion phenomena analysis and corrective actions definition (corrosion control).

RBI Risk Based Inspection:

High hazard process plants are periodically shutdown for maintenance and inspection turn around. This activities are fundamental for assure a safe operability and reliability. The high daily production on these plants forces user to dramatically reduce frequency and duration of this activities. The traditional inspection method is based on events o time criteria. More recently maintenance and inspection planned based on reliability criteria. The last approach is the risk based criteria. RBI is a process of carrying out risk analysis to determinate an optimum inspection plan. From existing practices for inspection planning its made a risk analysis and determinate future inspection plan through a rigorous scientific approach to managing pressure systems risk. The risk definition as a combination between probability and consequence of a failure allows managing the risks by ranking priors. The probability of failures involves different factor for concern: Fabrications factors, inspections history, operations parameters, procedures and managing system and the time. The consequences of failures involves different factor for concern: hazard of fluid release, driving forces, quantity, adjustment to release rate / release mass. This analysis could be represented on a matrix.

The RBI process considered: - Data collection - Analysis and damage mechanisms. - Risk analysis. - Validation of results. - Inspection planning. - Execution of inspection. - Repairs, modifications, fitness for services, re-rating, etc.

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Standardisation

With the purpose of connecting the standardization and study activities in the sectors of interest, the Institute constantly cooperates also with European and international bodies and organizations statutorily involved in welding, such as CEN (Committee European de Normalisation), ISO (International Standardization Organization), EWF (European Welding Federation) and IIW (International Institute of Welding).

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Master in A s s e t M a ng e m e n t

Assets reference Design and Calculate In the earliest age of the asset life cycle the main important thing is to have in concern the expectancy service life. This input is necessary to make the design considerations (materials, forces) and the following calculate supported by finite elements modelling. The assets behaviour always will be verified with the design parameters. The services brings by ISS allows certified that the first considerations was makes right.

Reliability evaluation of plants, components, materials. The different kinds of analysis and probes makes during the manufacturing, erection even along the operation age provide certain to the owner about the assets condition. These types of analysis give enough support to take decision to repair, to modify or to replace the assets.

Risk Based Inspection The advantages of the RBI process are: - Consistent with the principles of safety preservations which the legal requirements for Service Inspection are traditionally based on. - Accepted by insurers and jurisdiction bodies as a sound basis for lowering facility risk extending inspection intervals or adopted alternative non-destructive inspection procedure. - Effective tool for priority ranking of inspection and maintenance activities. - Optimization of inspection resource. - Dynamic process for risk management. - Involvement all plant departments. (management of change) - Improvement of the plant available. - Reduction of unscheduled shutdowns and loss production. Limits of RBI methodology are: Only concern the loss of integrity of pressure containing parts, functional failures are not considered. RBI is not a self-supporting tool for maintenance Turn around Industrial Planning; RBI must be matched with a reliability centred criteria for managing maintenance activities.

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