INTELLIGENT TRANSFORMER MANAGEMENT®

High Voltage Electric Power Reliability: Building a Best Practices Culture

The success of any reliability program is based on the ability to change the culture from reactionary to
proactive. The industrial world must overcome many challenges to bring about that change as it relates to
High Voltage Electrical Systems (HVES), with three of those challenges standing out as particularly
significant: aligning reliability leadership from an organizational standpoint, implementing best practices for
HVES reliability, and planning for the great legacy knowledge migration as the baby boomer generation
retires. We will approach each of these variables as just that; variables, and not barriers that must be
overcome.

The focus of this paper will be on organizations that use power to produce (industrial facilities) rather than
those that produce power (the utility industry). While many of the factors that relate to culture change are
the same for both segments, there is a major difference to how capital spending affects financial return.

Maintenance departments have traditionally been set up as cost centers. There must be a change from
cost center thinking to Asset Management and Reliability thinking to affect true reliability. A Reliability
Centered Maintenance (RCM) program for electrical systems will require change from all functions of an
organization, especially: Risk and Asset Management, Procurement, Plant O&M, Corporate and Plant
Reliability teams, and most importantly, Finance.

The most significant component of creating a reliability culture is having leadership alignment and
sponsorship at the financial, operating and maintenance levels. Once there is leadership alignment, then
the RCM message can be standardized and passed down through the organization, because it will require
significant changes in how major electrical systems are tested, maintained, monitored and eventually
replaced.

There are several components to developing a Best Practices and/or Reliability culture for electrical
systems:

 Define the exact culture you are trying to create. Culture is more than a desire; it is a combination
of the past, mixed with the present, directed to the future. Changing an organization’s culture may
be one of the most challenging parts of building an effective Best Practices and Reliability culture
for high voltage electrical systems.

The culture of reliability has been established, though not perfected, in most areas of production in
the industrial world. The value of CMRP certification attests to the importance of reliability in
maintenance organizations. HVES reliability is not part of that value, however, and the body of
knowledge (BoK) is short on knowledge relative to electrical systems.

 Garner support from leadership. Any reliability effort requires a higher level of support, simply
because it will require more than the maintenance department. Risk Management, Procurement,
IT, Plant & Operations Management and Maintenance Management are going to be impacted by
these cultural changes, so we might as well get sponsorship from the appropriate level(s) of
leadership before we start. It may not keep us from facing barriers, but it will make sure we have
the needed gravitas to overcome them.

If creating a reliable HVES is not a priority of management—both executive corporate management

and plant management—then any effort aimed at positive change will fail. There are too many
priorities that will take precedence from the perspective of reliability and maintenance and unless
there is a catastrophic failure or major unplanned outage due to the loss of power, there will be little
support for change.

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As mentioned previously, financial management plays a significant role in driving culture change.
My experience has shown that a consistent lack of adequate financial planning is working against
the reliability of the HVES, not working towards it. When maintenance budgets are developed, the
electrical assets of a company are usually not considered (unless, of course. it is in the utility
industry). Budgets based on the past do not necessarily reflect on the needs of the future. Both
operational and capital planning often overlook the HVES until something drastic happens, like an
unplanned outage that causes a significant loss of revenue or adds significant costs.

 Recognize—and adapt to—the changing demographics of the workforce. Along with the very real
and very complex components above, there is a generational shift taking place with the retirement
of boomers and the handing of the baton to the millennial generation. While there is much negative
written about this generational change, there are some very positive things taking place that will
make change easier.

There is a definite shift taking place in how future generations will learn, often referred to as
“Google® Brain.” The explosion of information, that began before the turn of the century, has made
it virtually impossible to memorize or capture so much information. Now, with advent of the
Industrial Internet of Things (IIoT), we are experiencing massive amounts of data to the point of
overload. I believe we are suffering from data chaos, with excessive and often conflicting data,
making it difficult for the reliability professional to make wise “data-centric” decisions.

 Define what a reliable, “Best Practices” electrical system looks like. For purposes of this paper and
presentation we are going to focus on changes around transformer reliability and best practices.
The same important changes taking place with transformer reliability are taking place with breakers,
relays & protective equipment and cables.

While the assets are unique, the reliability issues seem to be the same. One important example is
the Mean Time Between Failure (MTBF). For most electrical system assets, the MTBF is decades,
not hours, months or years. Assets that have been depreciated financially have also been over-
appreciated from the standpoint of reliability. They have worked so well with little to no thought
about maintenance or reliability, and beyond testing, we have done little to maintain these assets,
reacting only when repairs are needed. In too many cases, we have lived with a “break/fix”
mentality.

Let’s focus on one category of HVES assets: transformers. One of the most significant changes in past
decade is that newer transformers are failing at a much higher rate than the older installed base, and
markedly so since 2005. Our work with major Property & Casualty insurance companies has revealed a
dramatic change in the “bathtub curve” (see Figure 1) for transformers, with early failure rates increasing
from what we have historically anticipated—one year—to a 10-year early failure rate. Simply trying to buy
your way to reliability is not necessarily the best approach.

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Figure 1. Bathtub Curve for Transformers

What will that mean from a reliability perspective? Standardized testing and maintenance for newer units
must be as robust, if not more robust, than it is for older units. It also means failures will be less due to
aging and more due to problems with the units themselves. These early failure rates are not necessarily
caused by poor quality, rather they are caused by our reliance on transformers that have been overbuilt for
so long. Now they are made to rating only, with very little margin beyond that. Why has this happened? In
the 1970’s at Georgia Tech I used a 5-line slide rule, so we tended to err on the side of caution. Today
computer design means everything is built to design and rating specs, not overbuilt. This is not just true for
transformers but for many types of industrial equipment.

In 2010, we experienced a significant eye-opening event. Our company had the opportunity to manage the
installation of a 950mVa transformer at a generating facility in Texas. Both the new unit and the old unit
were from the same established manufacturer. We were puzzled to find that the crane rating for the new
unit was 5 tons lighter than the old unit coming out. In fact, the old unit was an 840mVa unit, smaller than
the new one, yet there was a difference in weight of 10,000 lbs. What was taken out of the new unit to
account for this difference? Oil! Paper! Copper! Steel! What was really taken out was the excess that was
in the original 38-year old unit.

Data Chaos: Combining Static and Variable Data

Massive amounts of “Static Data” can be all over the place in terms of location, quality and timeliness.
Figure 2 below is but a small snapshot of the types of chemical data available to us as we look at the
condition and necessary maintenance of transformer fleet. Chemical, mechanical and electrical data is
difficult to correlate, despite efforts to develop algorithms that will do just that.

But now all that static data pales in comparison to the volume of data we are getting from condition
monitoring systems. This new, “Dynamic Data” comes from monitors and can lead to data chaos where
there is too much data (often real-time data) for wise decision making.

In one case the data coming in from an 8-gas monitor suggested the condition of a transformer was in IEEE
Condition 4, which would normally require a shut down. The furnace transformer in question just happened
to power the most important furnace in the company and was in the middle of a four-month run. Shutting it

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down would cost millions of dollars. Thankfully, the dynamic data led us to review historical test data that
indicated the gassing problem that this transformer was exhibiting was not unusual for this year, brand and
class of unit. The line ran for four more months and the spare was prepped and ready to go during a planned
turn-around.

The Brain Drain

Too many organizations have a test, break-fix and run-to-failure approach to electrical system and
transformer reliability. Continuing with this approach will lead to unplanned outages and downtime losses.
The next generations of reliability and electrical engineering professionals will face significant issues as
they take responsibility for the reliability of the HVES. While reliability has become a key discipline in the
rest of the plant, we are only scratching the surface with the positive impact reliability professionals will
have on electrical systems.

The current generation of electrical system practitioners has not had to deal with many of the changes
taking place over the past decade, such as the higher failure rate of newer units. This is a recent
phenomenon. The legacy knowledge that the current and now retiring professional brings to reliability is
going away, and the next generation tends to be more digital, science or technology driven; they don’t have
the time to download all that knowledge and experience.

At a time when the volume of available data is exploding, there is a potential vacuum in the ability to
synthesize that data, couple it with experience and combine the art and science of data and analysis for
decision making. The good news is that the next generation is also the “Google® Brain” generation as
discussed previously, with the ability and desire to find the information they need, when they need it.
Creating a legacy body of knowledge (BoK) is something that many organizations are doing. Reliability
Web and the Society for Maintenance and Reliability Professionals (SMRP) are two organizations making
a difference in that area. That is the good news. The bad news is that electrical system reliability has been
left behind in terms of that legacy knowledge.

This generational change can be successful. Job succession planning and a commitment to training,
education and development can make a tremendous difference in how successful that generational change
will be. Applying some of the processes and disciplines from the body of knowledge in the reliability world
will also make the transition easier. Asset management for electrical systems has lagged behind that of the
rest of the plant assets. It is time to catch up.

Reliability Centered Maintenance

The components of a Reliability Centered Maintenance (RCM) program for electrical assets is not much
different than any other RCM program for a productive plant. It begins with standardized testing and
maintenance. While Computerized Maintenance and Management Systems (CMMS) support the
production equipment, they do not support electrical assets in the same way. Getting the right part into the
hands of the right person with the right tools at the right time to avoid an outage is a common function of
the CMMS. That is not the same with electrical assets.

Our experience has shown that as much as 70% of the maintenance recommendations for transformers
are ignored. Why? Because the CMMS is not capable of providing work order support for transformers. As
discussed previously, the MTBF of transformers is often over 30 years. Given that the average age of power
transformers in the US is 38 years old, little or no attention has been paid to include these assets in the
CMMS.

A robust RCM program for transformers must include:

 A Criticality Analysis (CA) that takes into account transformer powers

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 Standardized testing, diagnostics and recommendations.

 Standardized maintenance practices to maintain the unit, especially the oil which protects the paper
insulation. The life of the transformer is the life of the paper; extending the life of the paper will
extend the life of the transformer.
 Effective condition monitoring (which we will discuss further below).
 Finally, as with any RCM, the right training and education for the staff responsible for the reliability
of the transformer fleet means that legacy knowledge can be passed on to the next generation.
Once that knowledge is lost, it is much more difficult to obtain and sadly it usually comes after a
major loss.

Condition Monitoring
Another consideration for electrical system reliability is the rapid introduction of Condition Based Monitoring
and the Industrial Internet of Things (IIoT) adoption. While real-time data streams on critical assets adds
value, it also creates problems. Figure 2 shows a standard monitoring package for power transformers in a
large industrial facility in the southeast, with eight continuous monitoring devices.

Figure 2. Standard Monitoring Package

Presenting data in a way that positively impacts decision making is a major component of electrical system
reliability. Today it is more important than ever to connect the data in such a way that every level of an
organization finds it useful and valuable. Diagnostic data and legacy knowledge must be combined to
facilitate good planning and lifecycle management. This will take coordination between all the stakeholders
affected by the use of power—which is certainly every facet of an industrial or commercial facility.

We should consider the Useful Internet of Things (UIoT) when making monitoring decisions, not just the
Industrial Internet of Things (IIoT). Simply because something can be monitored does not mean it should
be monitored and, in some cases, less is more. With every monitor attached to a system, the data stream
from that monitor, which is usually variable and real-time, must be integrated with historical static data to
make decisions more effective.

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Conclusion
As older equipment and plants are being repurposed and pressures from a global competitive marketplace
make HVES reliability more critical, efficient and effective asset management will require both art and
science when it comes to reliability. The changes taking place in transformer management are not unique
to this asset class. These changes are also happening with breakers, relays, protective systems and
cabling. Every component of an electrical system is undergoing similar issues and the loss of generational
“know-how” is making it more difficult to manage.

How we manage dynamic and static data; how we maintain newer, less robust equipment; and how we
prepare the next generation for all of these challenges will determine whether we have a reliable or an
unreliable system. When we apply the same discipline and take the same approach that we have taken
for the rest of the production process assets, we will see the culture change necessary for a reliable high
voltage electrical system.

Keywords: Reliability, Electrical, Culture, Data, Maintenance, Transformer, High Voltage, Condition Monitoring,
reliability Centered Maintenance.

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 High Voltage Electric Power
Reliability:
Building a Best Practices Culture

Alan M Ross
Vice President of Reliability
SD Myers

2
 Major components of a HV electrical system

Transformers

High
Breakers Voltage Cabling
System

Relays & Protective

Equipment
3
 Critical Variables to Culture Change

Electrical
Power
Reliability

Culture
Change:
Reliability
Best Practices
Generational
Shift:
From Boomers
to Millennials

4
 Critical Barriers to Culture Change

Organizational
Support

Culture
Electrical Change:
Power
Reliability Reliability
Best Practices

Generational
Shift:
From Boomers
to Millennials

5
 Variable: Changes in infant mortality

Case: 2010 Luminant

Where is the greatest risk? 880 to 940 MVA Siemens
TRANSFORMER FAILURE RATES

3 10 20
Years Years Years

6
 RCM program for power transformers

…the Best Practice for Transformer reliability should be

based on criticality, history, risk and not past practices or
short term budgets.

• Test Interpretations &
Recommendations
• Field Inspection
• Test Data Only • Basic Competency Training
• Reactive • Asset Health Data Base
Maintenance
• Multi-gas, Real-time
Monitoring
• Advanced Bushing and PD
monitoring
• Infrared scanning @
• Engineer evaluation &
same time of oil testing
Review
• Single Gas Real-time
• Preventive Maintenance
Monitoring
• Life Cycle Advanced
• Predictive Maintenance
Training
• Electrical Testing
• Advanced Maintenance
Training

7
 Taking the intuitive approach

SEVERITY OF FAILURE

OCCURRENCE
Negligible Marginal Significant Severe
OF FAILURE

Moderate Extremely Extremely

Very Likely High Risk
Risk High Risk High Risk

Low Moderate Extremely

Likely High Risk
Risk Risk High Risk

Somewhat Low Moderate Moderate

High Risk
Likely Risk Risk Risk

Low Low Low Moderate

Unlikely
Risk Risk Risk Risk

8
 Data-driven Decision Making

Fluid
Analysis

Mechanical and
Maintenance

ET and IR
Data

Health
Center

Monitor
Data

9
 Because this changes…

Case: 2010 Luminant

Where is the greatest risk? 880 to 940 MVA Siemens
TRANSFORMER FAILURE RATES

10
 The RPN changes…

CONSEQUENCE OF FAILURE

PROBABILITY
Negligible Marginal Significant Severe
OF FAILURE

Moderate Extremely Extremely

Very Likely High Risk
Risk High Risk High Risk

Low Moderate Extremely

Likely High Risk
Risk Risk High Risk

Somewhat Low Moderate Moderate

High Risk
Likely Risk Risk Risk

Low Low Low Moderate

Unlikely
Risk Risk Risk Risk

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 Conclusions on Electrical System Variability: Standardize

Standardized
Program

Standardized Standardized
Training Testing

Standardized Standardized
Monitoring Maintenance

12
 Standardized Testing

Mechanical Electrical
Inspections Testing

Life
Extension Online
Oil Testing Transformer
Management Monitoring
Program

13
 The next variable…the changing workforce

The boomer brain drain will be replaced with next generation

staff unprepared to meet all of these challenges.

Unless we prepare the way.

14
 Data Centric DM: Visual Acuity

15
 What stands out?

16
 The IIoT Driven Organization

….the impact of the Industrial Internet of Things (IIoT)

will ultimately be of great benefit but the sheer
magnitude and complexity of data will create “data
chaos”.

17
 The UIoT Dilemma

…providers are beginning to take monitoring seriously

The standard
monitoring package
for new transformers
at a large industrial
facility in the Southern
US features 8
continuous monitoring
devices

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 The IIoT Dilemma: Find the needle in the haystack…

Sample of 48 DGA Monitors in

24 months:
- 100,000 records
- 479 alarms
- 31 real alarms: Communications
- 9 real alarms: DGA of consequence

With odds of 9 in 100,000: You are only slightly less likely to be

struck by lightning (1/12,000) in your lifetime than to find the real
alarm data on your own (1/11,111).

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 The Final Variable: Organizational Barriers

(C) Reliability
Director/Leader
(P)

(C) Purchasing
(C) Risk Management Procurement
(P)

(C) IT/Data
Management (P) Plant
Management
(P)

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 Conclusion: Align the Organization to Best Practices for Reliability

Leadership
Support: OA

Cultural
Change:
Electrical
System
Reliability
Generational
HV ES Best
Change
Practices
Dynamics

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 Conclusion: Change is the only constant

Thank You
?

Alan M Ross
Vice President of Reliability
SD Myers

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