PR

O
CED
U
RE– Common

Asset Modification Management

1 PURPOSE

This procedure is to outline the asset improvement activities to define and prioritise opportunities, to determine root
causes and to implement agreed solutions. Improvements can be through revised maintenance and operational
strategies and practices, asset spares and specifications and asset modifications to remove design faults. All
modifications shall be processed through the Management of Change process.
To determine whether an opportunity can be classified as a modification, refer to Modification Definition Document.
It also describes how modifications to plant, equipment and processes are raised, reviewed, approved and closed out
using Modification Tracker.

2 SCOPE

This procedure is part of the Acquire to Dispose process group within the MMG Process Framework, and is applied
as a Common procedure in the following operating and business areas:

 Golden Grove  Las Bambas  Rosebery

 Kinsevere  Melbourne  Sepon

3 ROLES AND RESPONSIBILITIES

Below are the roles and typical positions involved in the procedure and the work they do:

Who (Role and/or typical Position) Is Responsible for What

Plant Owner 5.10 Verify Effectiveness of the Deployed Modification

Asset Performance Analyser (Reliability 5.1 Consolidate List of Opportunities

Engineer, Technical Advisor – 5.2 Prioritise Assets for Modification
Mechanical)
5.3 Conduct Root Cause Analysis
5.4 Develop Modification Scope
5.13 Complete Modification Close Out Items

Modification Process Reviewer 5.6 Review Modification Request

(Technical Reviewer, HSR Reviewer 5.12 Verify Modification Actions
(Australian Sites))

Modification Approver 5.7 Approve Modification Request

Modification Initiator 5.5 Initiate Modification Request

5.8 Determine Modification Activities

Modification Action Implementer 5.9 Monitor and Update Actions

5.11 Complete Modification Close Out Action
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Asset Modification Management

4 PROCEDURE SUMMARY FLOW

A simple view of the key activities in this procedure to give structure to the following sections. Refer to Appendix A
for an overview of the procedure interactions and Appendix B for the detailed procedure flowchart.

Monitor and Update Verify Effectiveness of the Verifies and Closes Out
Analyse Modifications Initiate Modification Approve Modification Deployed Modification Modification
Actions

Asset Performance Modification Action Modification Process

Analyser
Overview:
Consolidates List of
opportunities
prioritse assets for modification
Conducts root cause analysis
Key Business Rules:
Modification Initiator
Overview:
Intiates the Modification in
Mod tracker and determines
the modification activities
Key Business Rules:
A modification can only be
submitted for approval when all
Technical reviewers have
completed the modification
review.
Modification Approver
Overview:
The modification request is
approved after evaluating
the change request’s scope,
risk assessment and...
Key Business Rules:
To approve a modification, it
is mandatory to select an
implementer and answer
how consultation on health
and safety matters was...
Implementer
Overview:
Monitor and Update Actions
Complete Modification Close
Out Action
Key Business Rules:
Only persons assigned
an action can state
whether it is completed.
Plant Owner Reviewer
Overview: Overview:
This is a verification of Review Modification Request.
the changes to the Verify that the actions have
been completed
physical Plant and
through the citation of evidence
Equipment.
Key Business Rules: Key Business Rules:
N/A
N/A

Procedure Sections: Procedure Sections: Procedure Sections: Procedure Sections: Procedure Sections: Procedure Sections:
3.1.1, 3.1.2, 3.1.3, 3.1.4 3.1.5, 3.1.8 3.1.7 3.1.9, 3.1.11 3.1.10 3.1.12

Figure 1: Asset Modification Management Procedure Summary Flow

5 PROCEDURE STEP INFORMATION

5.1 Consolidate List of Opportunities – Asset Performance Analyser

After the asset performance assessment has been carried out a consolidated listing of opportunities is
developed.

Key Inputs
 Performance Assessment with Recommended Projects

5.2 Prioritise Assets for Modification – Asset Performance Analyser

The improvement opportunities are individually reviewed, prioritized and shortlisted into an improvement
project register. The prioritisation could be established via a business value versus ease of deployment matrix.

5.3 Conduct Root Cause Analysis – Asset Performance Analyser

The shortlisted improvement projects undergo further analysis to determine the causes of the performance loss
and the modifications required.

5.4 Develop Modification Scope – Asset Performance Analyser

The modification is scoped into a proposal incorporating:

- Context and purpose

- Scope and battery limits

- Risk assessment

- Costing / resources / timing

- Business justification
PROCEDURE - Common

Asset Modification Management

- Alternatives considered

The Modification Definition document provides a definition of a Modification.

5.5 Initiate Modification Request – Modification Initiator

The modification request is created in and managed in Modification Tracker system.

Business Rules
 Health and Safety Representative (HSR) reviewers are automatically listed when a Workgroup is selected.
Note: The (HSR) review function applies to only Australian sites.
 At least one Technical reviewer must be selected, who cannot be the raiser.
 A Risk Assessment must be completed before initiating a modification request.
Key Inputs
 Modification Tracker

5.6 Review Modification Request – Modification Process Reviewer

The modification request is reviewed for suitability by HSR and Technical representatives. After reviewing the
proposed modification, the Reviewer must either:

•Agree; or

•Disagree with comments.

This means:

• Technical Reviewers - Signify that within their field of expertise they have reviewed and either agree or disagree
with the proposal.

• HSR Reviewers - Signify that for the workgroup they represent, appropriate persons have (or have not) been
consulted.

If Technical or HSR Reviewers does not agree with the proposed modification, after submittal, the Modification
Initiator must consider the disagreement and decide:

• Whether to rework the proposed modification, and send it out for review again; or

• If the Initiator believes that the proposed modification does not need to be re-worked, state the reasons why
and then submit it to the Approver with the disagreement standing.

Business Rules
 A modification can only be submitted for approval when all Technical reviewers have completed the
modification review.
 A reason must be provided if a reviewer disagrees with a modification request.
 At least one proposed Technical reviewer associated with each Impact must review the modification.
 Modification reviewers must either agree, or disagree and provide a comment on the modification request.
 Reviewers do not have to comment on Impacts and Close out Items.
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Asset Modification Management

 The modification request must be endorsed, including financial and risk assessment justification, for it to
proceed.
Key Inputs
 Modification Request
 Modification Tracker

5.7 Approve Modification Request – Modification Approver

The modification request is approved after evaluating the change request’s scope, risk assessment and
technical / HSR reviews.

Once a notification is received, the Approver can approve to signify that:

• Risk assessments appropriate to the nature of the modification have been performed; and

• The modification has been reviewed by people impacted by the modification (or their representatives).

• Workforce consultation where required has occurred; and

• When approving a modification in which a Reviewer(s) has disagreed, they have made their decision
considering the disagreement(s).

Business Rules
 A Modification approver can extend the reversal date at any stage until the Modification is closed out.
 If the Modification request is temporary, an expiry date must be assigned to the Modification request.
 To approve a modification, it is mandatory to select an implementer and answer how consultation on health
and safety matters was achieved.
 If Modification approval conditions are added to the modification request they must be responded to by the
implementer.
Key Inputs
 Agreed Modification Request
 Finalised Modification Request
 Modification Tracker

5.8 Determine Modification Activities – Modification Initiator

The approved modification request enables work to proceed in developing detailed work plans and the safe
deployment of the modification. Modification activities and controls are raised in Modification Tracker and can
include:

- Project Initiation

- Master Data updates, including engineering drawings, materials, strategies

- Work instructions

- Spares

- Training and change management

- Risk Management.
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Asset Modification Management

5.9 Monitor and Update Actions – Modification Action Implementer

The modifications activities are monitored and updated in Modification Tracker, including progress details. If the
Modification Initiator does not have access to the Modification Tracker system, then this task may be delegated
to somebody who does, ie the initiator's supervisor.

5.10 Verify Effectiveness of the Deployed Modification – Plant Owner

The modifications effectiveness and compliance to the modification request is undertaken once the modification
is completed. This is a verification of the changes to the physical Plant and Equipment.

5.11 Complete Modification Close Out Action – Modification Action Implementer

Upon completion of each modification activity, the action is closed out in Modification Tracker stating the date
the action was closed, how any approval conditions were addressed and providing evidence as to what was
undertaken to consider the action closed.

For temporary modifications, the date the conditions were reversed is stated.

Business Rules
 Only persons assigned an action can state whether it is completed.
Key Inputs
 Asset Strategies
 Drawings
 DSC/PLC Coding
 Equipment Registers
 Materials List
 Procedures
 Records
 Risk Assessment Registers
 Training Modules
 Training Records
 Updated Modification Implementation Document
 Work Instructions
 Work Orders
 Modification Tracker

5.12 Verify Modification Actions – Modification Process Reviewer

Verify that the actions have been completed through the citation of evidence.

5.13 Complete Modification Close Out Items – Asset Performance Analyser

With each modification activity deemed completed, confirm that all activities are completed and undertake final
close out the Modification request. This may include: checking items that have been updated or filed such as
drawings, procedures, work instructions, training material, equipment registers, DCS/PLC coding, training records,
work orders, etc.
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Asset Modification Management

Business Rules
 Where actions are raised, these must be completed to enable final close out.
Key Inputs
 Modification Implementation Document
 Modification Tracker

6 REFERENCES

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PROCEDURE - Common

Asset Modification Management

APPENDIX A: PROCEDURE INTERACTIONS

This section provides an overview of how this procedure integrates into the MMG Process Framework. The diagram
displays the most important procedure interactions. The table lists all detailed procedure flowchart interactions, listed
in procedure alphabetical order.

Acquire to Dispose Business Scope - Improve Asset Performance

MMG_Business Scope Diagram

Resource to Metal

Integrated Short-term Mine

Planning

Asset Performance Asset Performance

Review Required Review Completed

S
Outage Commissioning and Improve Asset Performance
Start-up Asset Performance Assessment Post
Commissioning Required

S S Performance Assessment for

Asset Performance Potential Replacement Completed
Asset Strategy Deployment
Maintenance Plan Assessment
Completed

Asset Improvement
Opportunities Identified

S S Asset Improvement S M
Physical Asset Master Data Asset Modification Activities Identified Asset Improvement Asset Strategy
Standard Definition Asset Data Standard Management Analysis Change to Asset Development
Publication Notification Strategy Required

Plan to Manage

M Asset Improvement Life of Asset

Risk Assessment (OLD)
Risk Assessment
Completed
Activities Identified Re-evaluation Required Outage Evaluation
Report Created
Corrective Action Corrective Action
Required Update
Plan to Manage

M M S
Outage Performance
Audit Result Management Detailed Asset Design
Evaluation

Figure 2: Asset Modification Management Procedure Interactions

Previous Procedure Input Process Output Next Procedure

Any Process Modification Asset Modification Standard and Control Any Process
Deployed Management Updates Required

Asset Performance Asset Improvement Modification Asset Commissioning

Assessment Opportunities Completed
Identified

Audit Result Corrective Action Asset Improvement Asset Improvement

Management Required Activities Identified Analysis

Physical Asset Master Asset Data Standard Corrective Action Audit Result
Data Standard Publication Update Management
Definition Notification

Process and System Asset Performance Asset Improvement Detailed Asset

Improvement Improvement Activities Identified Design
Opportunity
Identified

Project Execution and Modification Asset Improvement Maintenance

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Asset Modification Management

Previous Procedure Input Process Output Next Procedure

Commissioning Deployed Activities Identified Budgeting

Risk Assessment Risk Assessment Asset Improvement Maintenance

(OLD) Completed Activities Identified Notification Creation

Risk Assessment Risk Assessment Maintenance Activity Maintenance

(OLD) Completed Required Notification Creation

Work Completion Modification Asset Master Data Physical Asset Master

and Follow-up Deployed Maintenance Data Maintenance
Required

Project Required Project Initiation

Risk Assessment Risk Assessment

Required (OLD)
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Asset Modification Management

APPENDIX B: DETAILED PROCEDURE FLOWCHART

Asset Modification Management

MMG_T3 - Procedure Flowchart

Asset Performance Process and System Physical Asset Master Audit Result
Risk Assessment (OLD)
Assessment Improvement Data Standard Definition Management

Asset Performance
Asset Improvement Risk Assessment Asset Data Standard Corrective Action
Improvement
Opportunities Identified Completed Publication Notification Required
Opportunity Identified

Consolidate List of Responsible Asset Performance

Opportunities Analyser

Prioritise Assets for Responsible Asset Performance

Modification Analyser

Conduct Root Cause Responsible Asset Performance

Analysis Analyser

AND/
OR

Asset Improvement Asset Improvement Asset Improvement Asset Improvement Asset Master Data Corrective Action
Modification Required
Activities Identified Activities Identified Activities Identified Activities Identified Maintenance Required Update

Asset Improvement Maintenance Notification Physical Asset Master Audit Result

Detailed Asset Design Maintenance Budgeting
Analysis Creation Data Maintenance Management

Develop Modification Asset Performance

Scope Analyser
Responsible

Risk Assessment
Required

Risk Assessment (OLD)

Risk Assessment
Completed

XOR

Modification Initiator

Initiate Modification Responsible

Request

Modification Process
Reviewer
Review Modification Responsible
Request Consulted

Modification Initiator

XOR

Modification Request Disagreed Modification

Modification Disagreed
Agreed Rework Required

XOR

Modification
Approver
Approve Modification Responsible
Request Informed Informed
Modification Process
Modification Initiator
Reviewer

XOR

Request Modification
Modification Approved Modification Rejected
Rework

Modification Initiator

Determine Modification Responsible

Activities

AND/
OR

Maintenance Activity Standard and Control

Project Required
Required Updates Required

Maintenance Notification
Project Initiation
Creation
Any Process

Work Completion and Project Execution and

Follow-up Commissioning

XOR

Modification Deployed

Modification Action
Implementer
Monitor and Update Responsible
Actions

Plant Owner
Verify Effectiveness of
Responsible
the Deployed
Modification Informed
Modification
Implementor

Modification Action
Implementer
Responsible
Complete Modification
Close Out Action Informed
Asset Performance
Analyser

Modification Actions
Closed Out

Modification Process
Reviewer
Verify Modification Responsible
Actions

Asset Performance
Analyser
Complete Modification Responsible
Close Out Items

Modification Completed

Asset Commissioning

Figure 3: Asset Modification Management Procedure Flowchart (Click here to view interactive procedure)
PROCEDURE - Common

Asset Modification Management

Flowchart Legend:

APPENDIX C: GLOSSARY

The terms and/or abbreviations below have been defined to ensure that all users of this procedure have a common
understanding of key terms and abbreviations used in this document. An MMG wide glossary can be found in the
Magnet Glossary.

Term Definition

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