Fundamental Asset Management

Fundamentals Of Asset Management
V1.0 Jun2014
Copyright © 2014 BSI. All rights reserved. ASM00101ENGX
Welcome!
2
Copyright © 2014 BSI. All rights reserved.
Activity 1
• Delegate Introductions
20 minutes
Click here
to start
3
Course Aim
• To gain a clear understanding of asset

management terminology, an appreciation of
asset management practices, activities and
methodologies and recognition of the value
obtainable from an integrated approach to
the life cycle and risk-based management of
assets.
4
Learning Objectives
Upon completion of this training, delegates will be able

to:
• recognize and be able to apply asset management

terminology, definitions and principles
• identify and manage the expectations of stakeholders
with respect to asset management
KNOWLEDGE
• become familiar with internationally recognized asset

management methodologies and practices
• appreciate the structured approaches available for the
improvement of value realization from assets
5
Course Structure and Materials
• Lectures, discussion and practical activities

• Delegate workbook
• Participation
6
The Benefits of Asset Management
Hong Kong MTR Scottish Power
• Train operating costs reduced by 20% • 10% reduction in capital expenditure
• Train reliability: MTBF risen from 1000 Km to 3500 Km between failures • 20% reduction in OandM costs
• 22% increase in plant availability
• 25% reduction in forced outages
-30% network ‘total cost of ownership’ (Nuon, Netherlands)

-30% maintenance cost and +10% system availability (Copper mine, Chile)
A$11M/year budget savings (New South Wales government)
China Light and Power

ICE, Costa Rica*
* Winner of 1st IAM Asset Management

PAS 55 Certified Achievements award 2013
7
Case studies at: www.twpl.com/?page=CaseStudies
Asset Value
“Asset Management is the coordinated activities of an organization to realize value
from its assets.”
(The IAM, 2012, An Anatomy of Asset Management)
“An asset is something that has potential or actual value to an organization.”

(BS ISO 55000:2014)
Utilization or
Book value performance
or income
stream
Positive Negative
(value) (cost)
TANGIBLE INTANGIBLE
Tangible Intangible
8
What is an asset?
9
What is Asset Management?
• Creating value to the organization

Value and stakeholders
• Translating organizational objectives

Alignment into asset-related objectives
Leadership • Defined roles and accountability
Assurance • Assets fulfil their required purpose
10
What is an asset • A set of assets that interact or are

system? interrelated
What is an asset • Assets that are within the scope of

portfolio? the asset management system
What is an asset
• A management system for asset
management management
system?
• The co-ordinated activity of an

What is asset
organization to realize value from
management? assets
11
Relationship between asset portfolio, asset management
system and asset management
The capabilities for managing the asset
Managing the portfolio such as leadership, culture,
organization
motivation and behaviours
Asset
management Policies, strategies, procedures plans and
processes of both the assets and the asset
Asset
management system itself covering the
management whole asset life cycle
system
The assets and assets systems that make

up the asset portfolio covered by the asset
Asset portfolio
management system
BS ISO 55000:2014
12
• Resolving the conflict

C
O
S
T
whole lifecycle cost/performance/risk optimization is needed

13
Activity 2
• Asset Related Failures
5 minutes
Click here
to start
14
Why is asset management important?
• If it’s not effectively undertaken it can...

• increase risk within an organization
• Increase costs
• Reduce the value of the asset (or even the organization)
15
Who Are The Stakeholders?
What are their requirements?
Customers
International Agencies Regulator
National Government Legal Compliance
Company Directors Local Community
Company Board Local Government
Shareholders General Public
Company Managers Environmental

Lobby Groups
Contractors
Press and Media
Suppliers Sales and Marketing
Staff
16
Activity 3
• Asset life cycle
5 minutes
Click here
to start
17
The Asset Life Cycle
Capital Investment, STRATEGIC
Design & Projects ASSET MGT Materials
Stakeholder
Requirements Operating &
Maintenance RESOURCE
CHANGE Strategies MGT
MGT
Labour
Work Planning
EVALUATION
of Solutions
IMPROVEMENT
Identified Defects & WORK Work Scheduling
Problem / Opp’ty
uncompleted work MGT
Analysis
Internal Work Reporting Work Delivery

Problem / Opp’ty Reporting and Data Collection
Identification
REPORTING
External
18
Reporting Copyright © 2014 BSI. All rights reserved.
Business Impact Over Time
Asset health and Degradation, technology
utilization benefits overtake, obsolescence,
demand changes
Business impact
Acquisition
CAPEX
Renewal
CAPEX
OPEX, Risk-related and
Minor Changes CAPEX
Time
Normal
Operation and
Maintenance
20
Expenditure Type
Capital expenditure Operating expenditure
Acquisition Design Operation Engineering

Procurement Materials
Labour
Construction Engineering
Materials Maintenance Planned/unplanned
Labour Engineering
Penalties Materials
Labour
Commissioning Testing
Handover End of life Disposal
Delays/penalties Environmental cost
Residual value
Renew/replace Scrap value
21
Individual intervention optimization
What is the right objective?

Business impact ($/yr)
TOTAL
IMPACT
3500 TRUE
3000 OPTIMUM
2500 (best combination) FAILURE
2000
RISKS
1500
EQUAL impact
1000 but not optimal PREVENTIVE
Over Maintain Run to Failure COSTS
500
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Maintenance Interval (months)
22
Optimized Stewardship of Assets
4. Overall program optimization
1. Identify effective
Combination of all 3
individual
interventions
What is worth doing Asset risks and opportunities
when?
3. Activity program
Construct/acquire
optimization
Utilize e.g. outage strategy and
capital invest. programs,
Maintain/modify
Replace/dispose
2. Asset life cycle optimizations

What is best mix of investment,
utilization, maintenance, lifespan and
risk?
23
Activity 4
• Asset Management System - structure
10 minutes
Click here
to start
24
Key Elements of an AMS
Corporate or Organizational Plans and Objectives
Business Plan
Strategic AM Plan Asset Management
Policy
AM Objectives
Common principles
Plans For Developing and what must be
How policy will be AMS and Support achieved
delivered; whole
portfolio AM Plans Asset Mgt System
and
Support Elements
Life Cycle Activities
Design / Construct
Asset Portfolio
Operate / Utilize
Asset Systems
What gets done Maintain
Assets
in practice Replace / Dispose
Performance Review and Improvements

Asset Management System
26
Levels of Asset Stewardship
Typical priorities and concerns

Top
Corporate/
Down
Organizational Strategic Goals Organization
Management
Capital investment optimization

and sustainability planning Manage Asset Portfolio
System performance, Manage Asset Systems

cost and risk optimization
Optimize Manage
life cycle Create Bottom
Assets Renew
activities Utilize Up Maintain
/Acquire /Dispose
27
Business Drivers
Shape Reliability
Risk
Exposure Life
Regulatory Expectancy
Asset
Environmental Capital Cost
Value
Operating Cost
Public Image
Performance
Quality
Output
Customer
Impression
29
Context and Linkages
Shareholder Reliability
Value
Efficiency
Employee,
Customer, Public
Safety
Life Extension
Environmental,
Economic, Social
Responsibility Compliance
Customer Service
Shine
30
Asset Management Policy:
What are the Business Drivers?
• Would like or must have?
31
Asset Management Policy:
What are the Business Drivers?
• Legal requirements
• Regulatory requirements
• Other stakeholder requirements
32
Activity 5
• Asset Management Policy
10 minutes
Click here
to start
33
Conflicting Organizational Objectives
SPEND LESS ACHIEVE MORE
• Lower Operating and • Greater Reliability

Capital Costs
• Better Performance
• Lower Maintenance
• Longer Life
Costs
• Greater Safety
• Reduce Downtime
• Improve Bottom Line
We need to find the optimum
34
Asset Management Strategy
• Essential Features
35
Asset Management Decisions
• What situation prevails?

• Why do we need to consider this now?
AM decisions affect • What problems or opportunities exist?
and involve different Situation • What is the business context?
people and
departments.
• What is the desired future state?

Standardised and • How do we measure it?
shared protocols help Target
organizations take
decisions.
• Options
A simple one is • Criteria applied to arrive at the recommendation
Situation + Target + Proposal • Recommendation
Proposal
37
Activity 6
• Asset Management Strategy
15 minutes
Click here
to start
38
Asset Management Objectives
• Essential Features
39
Asset Management Plans
• A plan is a thought out method for doing or achieving

something
40
Asset Management Plans
• Monitoring plan delivery
41
The Need to Define Asset Criticality
• Asset intensive organizations can have extensive asset

systems which will have varying values and importance to
the organization
42
Critical Assets
“All assets are critical but some assets are more
critical than others” Adapted from George Orwell’s Animal Farm
43
Activity 7
• Asset Criticality
5 minutes
Click here
to start
44
What is Asset Criticality?
• The criticality of an asset is an indication of how important

it is
45
Typical Criticality Distribution
Group A - The vital few (5-10%)
Group B - The core of the business (30-40%)
Group C - All the rest (50+%)
47
Day 2
V2.0 May2014
Copyright © 2014 BSI. All rights reserved. ASM00101ENGX
Review of Key Points – Day 1
49
Day 2 Aim
• To build on key principles established in day 1

and outline key asset management practices in
relation to risk management, asset data and
analysis of asset-related data to create
continual improvement
50
Asset-Related Risk
• Defining a process and checklist for planning
51
Risk: Defined
• Risk is defined as the…
• Probability of an event occurring
• multiplied by the
• Consequences of that event
• Risk = probability x consequences
• Risk can be viewed as the effect of uncertainty on our plans

52
Activity 8
• Asset Related Risk
10 minutes
Click here
to start
53
Risk Management Process
• The methodology should be:
55
Risk Management Process
Establishing the context
Risk assessment
Risk identification
Communication
Monitoring
and
Risk analysis and
Consultation
Review
Risk evaluation
Risk treatment
Source ISO 31000: Risk management — Principles and guidelines

56
Risk Assessment
• Risk assessment has 3 main

elements:
• Identification
• Analysis
• Evaluation
57
Risk Identification - Historical evidence
• What are the triggers?
58
Risk Identification – Current Evidence
• Asset health
• Asset management system ‘health’
59
Risk Identification - What Might Happen
• SWOT analysis
• BPEST/PESTLE analysis
60
Risk Analysis
• Risks need to be understood so that appropriate control

action can be determined
61
Probability of Failure
The ‘Bath-tub’ curve

Probability of failure
Age- or
Infant usage-
mortality related risk
Random
risk
Time
Age at failure
62
FMECA, RCM and CBM/RBI
FMECA – assessing asset risk, how assets fail and how seriously
(and what to do about it – shallow level)
RCM – more systematic selection of what to do about it

(including condition-based, planned preventive
maintenance, corrective, failure-finding and design out)
CBM/RBI – expanded consideration of how condition

can be monitored and preventive maintenance
triggered
63
FMECA/RCM Questions
• FMECA/RCM asks 7 key questions
64
Cycle of Review and Improvements
5
FMECA logic and risk matrix
Risk Matrix
1 2 3 4
Functional Identify Classify
Select the Failure effect
roles of Failure Causes category
Equipment
equipment Causes (5 M’s)
Root
Cause Task
Recommendations
Analysis selection
Plant Risk Control

Breakdowns Implement
History System
Continuous Improvement loop

65
Criticality-related Asset Criticality
mix of risk
analysis methods
Quantified Rule-based Manufacturer’s
Cost/risk/perf. modelling Analysis (RCM/RBI) Recommendations
or current practice
Performance
Equipment Failure Mode Consequence M’tce Method
Reverse
RCM
‘What if?” Filter
tools needed
Risk
Procedure
Optimum guidance
reaction points needed
OPTIMUM INTERVALS
Design changes
Preventive tasks
Detective tasks
Corrective tasks
66
Risk Evaluation
Consequence of failure
Risk impact is: multiplied by
67
Consequence Scale: Example
Range and score Negligible Marginal Severe Critical Catastrophic
1 2 3 4 5
Impact area
Production/ <1 week 1 to 2 weeks 2 weeks to 2 2 months to 4 >4 months
Service months months
(system
downtime)
Health and No Minor Severe Multiple severe Fatality

Safety injuries/illness injury/illness injury/illness injury/illness
Environmental Minor damage- <1 year and/or 1 year to 2.5 1 to 5 years >5 years
readily repaired <$250k to years and/or and/or $500k and/or >$1m to
at <$1k correct $250 to $500k to $1m to correct
to correct correct
Statutory Site internal Local internal Global main Reportable Public enquiry
(legal) report required report required board internal breach and possible
report required (external/gov’t loss of
dept. report) operating
licence
Financial <$250k $250k to $500k $500k to $1m $1mm to $5m >$5m
68
Likelihood Scale: Example
Score Description Example 1 Example 2

Very unlikely < 1 event every 100 < 1 event every year
1
years
2 Unlikely > 1 event every 10 years > 1 event every year
3 Possible > 1 event every 5 years > 1 event every quarter
4 Probable > 1 event every 3 years > 1 event every month
5 Very Probable > 1 event every year > 1 event every day
69
“Intolerable” Risks
• Where to set the boundary?

• Legal limits
• Public acceptability
• Policy decisions (organization values)
• Need to consider how to deal with ‘special’ risks?
• Health/Safety/Environmental sensitivities
• Compounding risks (e.g. repeat events)
• Could there be a need to ‘override’ the score?

o i.e. automatically classed as intolerable?
70
Risk Matrix -Limitations
• Need to consider how to deal with…

• Very low probability events
• e.g. Never heard of in the industry
• and
• Very high consequences
• Complete plant destruction, multiple fatalities
• Severe environmental impact
• Regulatory and legal penalties
• Potentially business threatening?
71
Risk Reduction
Intolerable
Reduce
Consequence
probability
Reduce
72
Risk Controls
• Risk can be reduced by any mix of prevention and

mitigation actions
73
Asset Risk Management
Tools and Steps Risk Review
Types of Risk
• Physical
• Operational Risk not
• Environmental tolerable
• Natural
• Probability x Severity
• External • Criticality Analysis
Risk
tolerable
Identify Evaluate Determine

Assets Classify Identify
risk change in tolerability Risk
and Asset and define creditable
controls/ level of of residual Register
Systems scope risks risks
treatment risk
• List of Assets • SWOT • Elimination • Legal • Monitor

and Systems • BPEST • Substitution • Statutory • Review
• Collect • PESTLE • Physical Controls • organizational • Manage
information • HAZOP • Signage/warnings • Audit
• Scope and • Risk Ass • And/or admin/
limits of W/shops procedures
individual • Benchmarking • RCM
systems • Incidents • RBI
• Audits and
Risk Inspection
Identification
Techniques 74
Activity 9
• Risk Management
15 minutes
Click here
to start
75
Contingency Plan
• A ‘contingency’ is a possible outcome that must be

prepared for e.g. emergency preparedness
• A contingency plan is a method for reducing the severity of

the consequences when an event happens
76
Contingency Planning: Good Practice
• No matter how well run an organization is things do

sometimes go wrong and the AMS requires the
organization to plan for this
77
Asset Information
is used for…
• List (Record)
• Measure
• Analysis
• Decisions and Control
• Communication
79
Asset Data
• Static Data
80
Asset Data
• Dynamic Data
81
Asset Data - Dynamic Data
What is done to the asset
Condition
Routine
Work Asset Asset Performance
Non-Routine Transactional Status Overall
Work Data Data Equipment
Effectiveness
Results of age, service, and interventions
82
Information Hierarchy
Quantity / Availability
Knowledge
• Information and skills
• acquired through experience
Information
• Facts provided
Data
• Sets of basic factual information
Metadata
• Data about data
83
Information Hierarchy Business Advantage
Quantity / Availability
Knowledge
Information
Data
Metadata
84
Information Hierarchy
Quantity /
Availability Business Advantage
Knowledge
Information
Data
Metadata
85
Activity 10
• Asset Data
10 minutes
Click here
to start
86
Documented Information
• Data, information and knowledge

• Document management system
87
Asset Management Communication
• An appropriate communication process is an essential

enabler
88
Activity 11
• Document Management
10 minutes
Click here
to start
89
Financial Performance Measures
• There is no one right measure!
90
Shareholder Value
Parameter How measured Measures :-

Share price Price per share either at that How the market sees
moment in real time on the stock the shares - confidence
exchange, or at the last close of in the company –
business. confidence in the
market.
P/E Price per share divided by Compares the value of
earnings per share the shares with the
income being
generated.
EBITDA Earnings before interest, tax, Operational profitability,
depreciation and amortization. ignoring things like
takeovers
91
Profitability
Ratio Formula Measures

Gross profit Gross profit x 100 The profit made after
margin turnover meeting the cost of
goods.
Net profit ratio Net profit before tax x 100 The profit made after
turnover all expenses are met
Asset turnover Turnover The volume of business
Net assets compared to the capital
used
Return on capital Profit before tax and dividends x Profitability of the
employed 100 company as a whole
Net assets
There are a number of variants on ROCE: for example some

separate the financial capital from shareholders ‘equity’.
92
Operating Efficiency

Operating expense ratio Operating expenses x The proportion of
100 turnover absorbed by
turnover expenses
Stock turn rate Turnover How quickly stock is
Average stock value being turned over
Retained profit ratio Retained profit x 100 What proportion of profit
Total net profit is retained in the
business
93
Liquidity and Financial Structure

Liquidity
Current ratio Current assets Overall assets available
Current liabilities to meet short term
liabilities
Quick ratio Current assets less stock Liquid assets available to
Current liabilities meet short term
liabilities
Finance
Gearing Long term loans + overdraft Ratio of borrowed capital
ratio (Shareholder funds + long term loans to that provided by the
+ overdraft) owner
The quick ratio is absolutely key to staying in business! If short term
liabilities can’t be met, the business can be forced into liquidation,
i.e. it is sold to pay its debts. It may or may not survive as a trading
entity.
94
Evaluation: Simple Payback
60
Base Case
40
Initial investment = 100 units
20
Life = 10 years
0
0 1 2 3 4 5 6 7 8 9 10 Total income = 135 units
-20 cash flow
Total income / year = 13.5 units
Profit = 35 units
-40 acc.cash flow
Breakeven point = 7.4 years

-60
-80
-100
A Scenario A
-120
Initial investment = 100 units
Life = 10 years
60 Total income = 135 units
40 Profit = 35 units
20 Breakeven point = 8.5 years
0
-20
1 2 3 4 5 6 7 8 9 10 11
cash flow Scenario B
-40 acc.cash flow Initial investment = 100 units
-60 Life = 10 years
-80 Total income = 135 units
-100 B Profit = 35 units
-120 Breakeven point = 6 years
95
Activity 12
• Delivering The Benefits
15 minutes
Click here
to start
96
The Value of Money
• Suppose you are given a choice of either;
$100,000 now, or
$110,000 in 2 years time
• Which is the best?

• What influences that decision?
98
Net Present Value Repair or Replace?
Replace:
Total costs £150,000 Repair
Expected Life after replacement Total costs £50,000
15 years Expected Life after repair 5 years
Asset planned useful life 12 Asset planned useful life 12 years
years No additional benefits
No additional benefits Discount Rate: 5%
Discount Rate: 5%
Discount Rate 0.05
Replace
Year 0 1 2 3 4 5 6 7 8 9 10 11 12
Costs 150000 0 0 0 0 0 0 0 0 0 0 0 0
Benefits 0 0 0 0 0 0 0 0 0 0
Cash flow -150000 0 0 0 0 0 0 0 0 0 0 0 0
NPV -150000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total NPV -150000
Repair
Year 0 1 2 3 4 5 6 7 8 9 10 11 12
Costs 50000 0 0 0 0 50000 0 0 0 0 50000 0 0
Benefits 0 0 0 0 0 0 0 0 0 0 0 0 0
Cash Flow -50000 0 0 0 0 -50000 0 0 0 0 -50000 0 0
NPV -50000 0 0 0 0 -39176.31 0 0 0 0 -30695.660.00 0.00
Total NPV -119871.971
Discounted Discounted
cash flow at cash flow at
year 5 year 10
99
Asset Performance
• What do we mean by asset performance?
100
Asset Failure - Patterns Can Vary Widely
A “bath-tub” is not the only pattern
‘Bath-tub’ curve: all failure types distinct
No infant mortality/introduced risks (rare!)
Steadily rising risks e.g. blockages
Initial robustness (all new); thereafter

components stabilise and fail randomly
Entirely random failures e.g. foreign object damage
Infant and random failures e.g. electronics
101
Asset Failure – Impact of Maintenance
Is fixed interval maintenance always the best approach?
Rising risks with age/use:

where predetermined
maintenance might help
Mostly random risk:

where predetermined
maintenance may not help
102
Asset Condition
• What do we mean by asset condition?
103
Condition Monitoring
Monitoring – inspecting to AVOID failures.
104
Example - Progressive Failure
A bearing example
Failure triggered
(could be random)
Condition of Component
Vibration detectable
Steel particles in
lubricant
Becomes warm
Becomes
noisy
Becomes
very hot
Total
breakdown
Time
105
Example - Progressive Failure
The “P-F” interval
P = Potential failure F = Functional failure

Potential warning
period
‘Bearing breaks up’
Time
106
Example - Instantaneous Failure
Some components do not show signs of deterioration
(e.g. proximity switch, photo cell, etc)
Instantaneous
failure!
No deterioration
evident
No warning of failure:
design change or mitigation
may be needed
F = Failure
Time
107
Condition Monitoring Techniques
• Human senses
Problems
• Subjective in nature
• Short interval to carry out maintenance task
108
What can we measure?
Selected Condition Based

Maintenance Techniques
1 Human Senses
2 Performance Monitoring
3 Vibration Monitoring
4 Oil Monitoring
5 Current Monitoring
6 Thermal Monitoring
7 Acoustic Monitoring
8 Ultrasonics
109
Condition Based Maintenance
• Testing and Fault Finding
111
Activity 13
• Welding Bay Example
15 minutes
Click here
to start
112
HIDDEN SLIDE
PLEASE NOTE - This slide is marked as hidden:
• It is not intended to be displayed to the class as part of the

course slideshow.
• It has been created to accommodate notes that will not fit

on 1 page.
• Print in PowerPoint notes view as part of the delegate

manual only.
113
Typical Definitions
• Defect
• Failure
• Incident
• Accident
114
Response Actions
• Defect
• Failure
115
Activity 14
• Incident Report Analysis
15 minutes
Click here
to start
117
Where Are Improvements Identified?
• Actions (approved) as a result of:

• Condition monitoring
• Incidents and failures
• Audits
• Management reviews
• Monitoring of KPIs and plans

• Stakeholder requirements
• Business requirements
119
Key Elements of an AMS
Organizational Plans and Objectives
Strategic AM Plan Asset Management

Policy
AM Objectives
Plans For Developing
AMS and Support
AM Plans Asset Mgt System

and
Life Cycle Activities Support Elements
Design / Construct
Asset Portfolio
Operate / Utilize
Asset Systems
Maintain
Assets
Replace / Dispose
Performance Review and Improvements

Asset Management System
120
ISO 5500X - Asset Management System
1 Scope of ISO 5500X (and benefits of an asset
management system)
2 Normative references
55000 – Overview, principles
and terminology
Plan
55001 – Management
systems – requirements 10 Improvement
4 Context of the organization
Act
55002 – Guidelines for
application
3 Terms and definitions 5 Leadership

-
7 Support
9 Performance evaluation
6 Planning
Check
8 Operation
Do 121
ISO 55001 - Asset Management System
10 Improvement Plan
 Nonconformity and corrective 4 Context of the organization
action  Understanding the organization and its context
 Preventive action  Understanding the needs and expectations of the
 10improvement
Continual Improvement stakeholders
4 Context of the
Determining organization
the scope of the AM System
Act
7 Support
9 Performance Evaluation  Resources 5 Leadership
 Monitoring, measurement,  Competence  Leadership and commitment
-
analysis and evaluation  Awareness  Policy
 7
Communications
 9 Internal
Performance
audit  organizational role, responsibilities
 evaluation
Management review  Support
Information and authorities
requirements
 Documented
information
Check 6 Planning
 Actions to address risks and
opportunities for the AM system
 Objectives
8 Operation 8 Operation  Planning to achieve AM objectives
 Operational planning and control
 Management of change Do
 Outsourcing
122
Stakeholder and organisational 4.1 Understanding the organisation and is context
ISO 5500X context 4.2 Understanding the needs and expectations of the
stakeholder
5.1 Leadership and commitments
5.3 Organisational roles, responsibilities and authority
Organisational plans
and organisational
objectives
4.3 Determining the scope of Asset management
the asset management system 5.2 Policy
policy
6.2.1 Asset management
objectives
Strategic asset
management plan
Asset management
objectives 4.4 Asset management systems
6.2.2 Planning to achieve asset
management objectives 6.1 Actions to address risks and
8.3 Outsourcing (scope) opportunities for the asset management
system
Plans for developing
Asset management asset management
plans systems and
relevant support
8.1 Operational planning and
control
7.1 Resources
8.3 Outsourcing (control)
7.2 Competence
8.2 Management of change
Implementation of asset Asset management 7.3 Awareness
management plans system and relevant 7.4 Communications
(Life cycle activities) support elements 7.5 Information requirements
7.6 Documented information
Asset portfolio 8.2 Management of change

9.1 Monitoring, measuring, analysis and evaluation
9.2 Internal audit
9.3 Management review
10 Improvement
Performance evaluation and improvement
Source:
ISO 55002
123
Management Systems Integration
• Management system ‘framework’
124
Activity 15
• Asset Management System
10 minutes
Click here
to start
125
Course Summary and Final Questions
126
Contact Information
Address: BSI
Telephone:
Fax:
Email: <general training email>@bsigroup.com
Links: http://<local web address>
Add local/country contact information
127

Fundamental Asset Management

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Fundamental Asset Management

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Fundamentals Of Asset Management

• To gain a clear understanding of asset

Upon completion of this training, delegates will be able

• recognize and be able to apply asset management

• become familiar with internationally recognized asset

• Lectures, discussion and practical activities

-30% network ‘total cost of ownership’ (Nuon, Netherlands)

China Light and Power

* Winner of 1st IAM Asset Management

“An asset is something that has potential or actual value to an organization.”

• Creating value to the organization

• Translating organizational objectives

Leadership • Defined roles and accountability

Assurance • Assets fulfil their required purpose

What is an asset • A set of assets that interact or are

What is an asset • Assets that are within the scope of

• The co-ordinated activity of an

The assets and assets systems that make

• Resolving the conflict

whole lifecycle cost/performance/risk optimization is needed

• Asset Related Failures

• If it’s not effectively undertaken it can...

National Government Legal Compliance

Company Directors Local Community

Company Board Local Government

Shareholders General Public

Company Managers Environmental

• Asset life cycle

Internal Work Reporting Work Delivery

Acquisition Design Operation Engineering

What is the right objective?

Maintenance Interval (months)

2. Asset life cycle optimizations

• Asset Management System - structure

Performance Review and Improvements

Typical priorities and concerns

Capital investment optimization

System performance, Manage Asset Systems

• Asset Management Policy

SPEND LESS ACHIEVE MORE

• Lower Operating and • Greater Reliability

We need to find the optimum

• What situation prevails?

• What is the desired future state?

• Asset Management Strategy

• A plan is a thought out method for doing or achieving

• Monitoring plan delivery

• Asset intensive organizations can have extensive asset

• The criticality of an asset is an indication of how important

Group A - The vital few (5-10%)

Group B - The core of the business (30-40%)

Group C - All the rest (50+%)

• To build on key principles established in day 1

• Defining a process and checklist for planning

• Risk is defined as the…

• Probability of an event occurring

• Risk = probability x consequences

• Risk can be viewed as the effect of uncertainty on our plans

• Asset Related Risk

• The methodology should be:

Source ISO 31000: Risk management — Principles and guidelines

• Risk assessment has 3 main

• What are the triggers?