PAS-55

A Publicly Available Specification for the Management of Physical Assets

Nick Hastings
Centre for Integrated Engineering Asset Management n.hastings@qut.edu.au

What is PAS 55?

A Specification for the Management of Physical Assets Ph i l A t British Standards Institution 2004.

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Comparisons
Quality, ISO9000, Six Sigma; y g Safety and Health AS4801; Environment ISO14000; Asset Management PAS-55; governance, not technical specifications.

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PAS 55 References
PAS 55-1 Asset Management British Standards Institution 2004 Management. Institution, 2004. PAS 55-2 Asset Management. Part 2: Guidelines for Application. www.bsi global.com www bsi-global com Competency Requirements for the Management of Physical Assets and I f t t d Infrastructure. June 2006. The Institute of Asset Management J 2006 Th I tit t f A tM t www.iam-uk.org International Infrastructure Management Manual. Association of Local Government Engineering NZ Inc. www.ingenium.org.nz www ingenium org nz IEC 60300 Dependability Management standards.
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Physical Assets

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Offices Dam

Train Loading Maintenance Power area Silo station

Mine Site Assets

Coal Washer Access Road.

Railway to coast Coal storage + Stacker/Reclaimers

Conveyors from mine PAS 55 AAMCOG 6

PAS-55 Aims
To develop an approach to asset management which is: Holistic big i t H li ti bi picture; Systematic methodical; Systemic integrated; Establishes E t bli h a governance structure; t t Sustainable; Risk-based.

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Implementation Status
Infrastructure companies have been active in the implementation of PAS-55, including: National Grid (UK) Essent BV (Netherlands) Essent EdF energy (UK) CLP (Hong Kong) CLP Ofgem, the gas and electricity networks regulator in the th UK requires network operators to be compliant b i t k t t b li t by April 2008.
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Why Go For PAS-55? For the organization, establishing a prestige relationship: p with the public; with government; with regulators; with external stakeholders; with competitors; compare ISO9000 ISO14000, AS4801 ISO9000, ISO14000 AS4801.

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Why Go For PAS-55? Within the company: Top management awareness of asset management and its role in profitability; Improvements in asset capability creating better capability, financial returns; Improved internal processes; Insurance, health and safety, regulatory benefits; Improvements in training and d I t i t i i d development. l t

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Physical Asset Management A Grey Area

Owner = Business strategy O B i t t Senior Management

Grey Area

Operations Manager Operations O Maintenance Manager Maintenance

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PAS-55 Fills In the Grey Area

Owner = Business strategy O B i t t Business Development Group Asset Managers Acquisitions Current equipment strategy gy Operations Manager Operations O Maintenance Manager Maintenance
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Asset Management in the Organizational Structure

CEO Business Development Group

Chief Operations Officer

Chief Financial Officer

Chief Information Officer

Chief Asset Management Officer

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Age Profile of Electricity Distribution Assets

350 300 250 200 150 100 50 0 0 to 9 yrs 10 to 20 to 30 to 40 to 19 yrs 29 yrs 39 yrs 49 yrs Transformers CB Bays 1000 Poles

Based schematically on article by M.J. Boyd, United Energy, Melbourne, ICOMS M J Boyd Energy Melbourne Conference 2002.
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Capital Cost Implications of Replacement Program

$Millions
600 500 400 300 200 100 0 Now N 1 t 9 yrs 10 t 19 to to yrs 20 t 29 to yrs Transformers CB Bays Total

$200 Million required now. $700 Million required in next 9 years now
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Capital Equipment Lead time Activities

Capacity Units Planned Capacity Lead Time Demand Forecast Lead Time Activities Concept C t Design Costing/Financials Approvals Tendering Construction\ Acquisition Installation Run Up Personnel Training g & Deployment
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Cost C t
Now Time

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Asset Management 101 Technical knowledge T h i lk l d Business knowledge Financial analysis Stakeholder involvement Product knowledge Project management j g Operational knowledge Logistic support analysis Level of repair analysis Life Lif cycle costing l i Asset information systems Maintenance policy development Outsourcing Condition monitoring Inventory management Asset renewal planning p g Risk analysis

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PAS-55 Asset Management System Elements

SystemS t Wide
4.2 Policy d St t 4 2 P li and Strategy Asset Development Planning Organization for Asset Management

4.3.1 Asset Management Information Systems

Asset AssetSpecific

4.3.2 Risk Assessment & Control 4.4.1 Structure and Authority

4.3.3 Compliance Requirements

4.3.4 - 4.3.5 Objectives, Targets

4.3.6 Management Plans 4.4.7 Emergency Response

4.4.6 Operations Control

4.4.2 Training, Awareness & Competencies C t i 4.5.1 Performance & Condition Monitoring

4.4.3 4.4.5 Communication, Documentation D t ti 4.5.2 Reliability Analysis & Engineering

4.6 Management Review & Improvement

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Competency Competency of the system; Competency of individuals.

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Competency Gap Analysis

PAS-55 PAS 55 Section 4.2 Policy and Strategy 4.3.1 Asset I f 431A t Information System ti S t 4.3.2 Risk Management 4.3.3 Regulatory compliance 433R l t li 4.3.6 Functional level planning 4.4.1 Structure 4 4 1 Str ct re and responsibilities 4.4.2 Training 4.5.1 4 5 1 Condition monitoring 4.6 Continual improvement Total Target 28 20 20 32 24 20 16 12 12 184 Actual 20 16 17 21 18 16 10 7 6 131 Gap 8 4 3 11 6 4 6 5 6 53
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PAS-55 Implementation
Top management commitment; Implementation team; Facilitator; Internal asset / organizational experts; Administrative / documentation support; Administrative Web based document.

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Benefits for the Organization Relationships: with the public; with government; with reg lators ith regulators; with external stakeholders; with competitors; compare ISO9000, ISO14000, AS4801.

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Benefits within the Organization Top management awareness of asset management and its role in profitability; Improvements in asset capability; Improved internal processes; Improvements in training and development; Financial and non-financial b Fi i l d fi i l benefits f fit from all th above. ll the b

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Where to Next? Should we have an Australian Standard?

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The End
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Aims
To provide an overview of PAS-55; To h T show h how PAS PAS-55 can b used as a b i f asset be d basis for management organization and planning; To show how PAS-55 can be used as a basis for competency rating and competency gap analysis; To assist participant companies to get benefits from the PAS-55 approach.

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Related Standards
API 580 and 581 Risk Based Inspection AS4360 Risk Analysis and Risk Management AS4536 Lif Cycle C ti Life C l Costing ATA MSG-3 Air Transport Association Maintenance Steering Group BS5760 Failure Mode and Effects Analysis IEC 60300-3-3 Life Cycle Costing 60300 3 3 IEC 60300-3-10 Maintainability IEC 3 11 IEC-3-11 Reliability Centered Maintenance IEC 60300-3-11 Integrated Logistic Support ISO14224 Reliability and Maintainability Data
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PAS 55 Documents
PAS 55-1 Asset Management. Part 1: Specification for the optimized management of 55 1 physical infrastructure assets. ISBN: 0-580-42765 X PAS 55-2 Asset Management. Part 2: Guidelines for the application of PAS 55-1. 55 2 55 1. British Standards Institution, London www.bsi-global.com Tel: +44 (0)20 8996 7070

Related Documents Competency Requirements for the Management of Physical Assets and Infrastructure. June 2006. The Institute of Asset Management 221 St Johns St London EC1V 4JY Web: www.iam-uk.org International Infrastructure Management Manual. Association of Local Government Engineering NZ Inc. www.ingenium.org.nz Tel: +64 7 868 3960 IEC 60300 Dependability Management series of standards.
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4.2.2 Asset Management Strategy Competence Assessment Technique T h i Asset demand forecasting Capability d C bili development system. l Asset retirement planning Financial analysis Fi i l l i Acquisition project management Competency Ranking: Target A t l T t Actual 4 4 4 5 4 3 3 2 4 2 Gap G 1 1 2 1 2

5 = Mastery 4 = Professional 3 = Foundation 2 = Developing 1 = Initial 0 = None

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4.3.1 Asset Management Information System

Technique Computerized Maintenance Management System (CMMS) existence and organizational support g pp Asset register developed Maintenance policies in CMMS p Work request / Work order systems in use Stores on-line Configuration management system Target Actual 4 2 Gap 2

4 4 5 4 4

2 1 2 3 0

2 3 3 1 4
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4.4 Implementation and Operation

Technique Organizational structure for fleet management strategy gy Maintenance organizational structure Maintenance services organizational structure Effective maintenance planning and control Effective maintenance facilities provision and budget Effective maintenance resources provision and budget Training requirements analysis Training T i i provision and b d t i i d budget Stakeholder groups identification and communication Emergency p p g y preparedness and response systems p y Target 4 4 4 4 4 4 4 4 5 5
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Actual 4 4 2 3 2 3 4 3 3 5

Gap 0 0 2 1 2 1 0 1 2 0 31

4.5.1 Performance and Condition Monitoring 4.5.2 Reliability Analysis and Engineering
Technique Incident management systems and practices effective Failure reporting and corrective action g systems (FRACAS) effective Condition Monitoring Root Cause Analysis (RCA) effective Reliability analysis, MTBF, failure rate trends analysis effective Engineering support for reliability, y y p availability , maintainability improvement Target Actual 4 4 4 4 4 4 2 2 4 3 2 3 Gap 2 2 0 1 2 1

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