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LCM Indonesia Power-4 Juli 2011
LCM Indonesia Power-4 Juli 2011
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Why Are We Here
• This activity is an element of the Asset Management Transformation
Initiative - AMT - at Indonesia Power.
• The objective of AMT is to strengthen IP’s overall performance and
reliability by aligning its processes with Industry Best Practices.
• This transition is expected to eventually move Indonesia Power into
compliance with both PRO and PAS-55.
• P&ROSolutions is one of the facilitating-partners in this effort.
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What is PRO
• PRO is a collection of primary, industry best-practice processes for
Reliability Management that can enable plants to achieve higher levels
of performance and reliability.
• The concepts of PRO originated from studies done by the Electric
Power Research Institute (EPRI).
• Attainment of the full potential of PRO requires a disciplined
implementation of all of it’s elements.
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What is PRO
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What is PRO
• The core underpinnings of a PRO-compliant Workplace are:
• Clear roles, responsibilities, and accountabilities;
• Effective, optimized, sustainable Processes;
• Appropriate integration of Processes;
• Goodtools and documentation to support the Processes;
• Disciplined execution of the Processes;
• Strong communications - vertically & horizontally;
• Metrics & goals that highlight opportunities for improvement;
• Sponsorship of the organization’s Leaders;
• Commitment to continuous improvement across the Organization.
• The staff at P&ROSolutions has been helping power stations to
implement comprehensive PRO initiatives for more than a decade.
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What is PAS-55
• PAS-55 was first published in 2004 in response to a demand from
industry for a standard for Asset Management. It was updated in 2008.
• It is applicable to any organization where physical assets are a key or a
critical factor in achieving its business goals.
• It was developed by BSI (the British Standards Institute) in consultation
with a large number of international organizations and individuals from
a wide range of industries that are active and proficient in the field of
asset management.
• PAS-55 is emerging as a global standard for excellence in Asset
Management.
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What is PAS-55
FromPAS-55 “An asset management system is vital
holistic: looking at the whole picture;
for organizations that are dependent on the function
systematic: a methodical approach, promoting consistent,
and performance of their physical assets in the
repeatable and auditable decisions and actions;
delivery of services or products, and where the
systemic: considering the assets in their asset system
success of an organization is significantly influenced
context and optimizing the asset systems value (including
by the stewardship of its assets.”
sustainable performance, cost, and risks) rather than
optimizing individual assets in isolation;
risk-based: focusing resources and expenditure, and
The PAS-55 Macro setting priorities, appropriate to the identified risks and the
associated cost/benefits;
optimal: establishing the best value compromise between
competing factors (such as performance, cost, and risk)
associated with the assets over their life cycles;
sustainable: considering the long-term consequences of
short-term activities to ensure that adequate provision is
made for future requirements and obligations (such as
economic or environmental sustainability, system
performance, societal responsibility, and other long-term
objectives);
integrated: recognizing that interdependencies and
combined effects are vital to success. This requires a
combination of the above attributes, coordinated to deliver
a joined-up approach and net value.
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What is PAS-55
The PAS 55 Processis underpinned by the
familiar Plan– Do – Check– Act model… The P-D-C-A Model
• Plan Establish the asset management strategy,
objectives and plans necessary to deliver results
in accordance with the organization’s asset
management policy and the organizational
strategic plan
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What is PAS-55
The core underpinnings of a PAS-55-compliant Workplace are:
• An Asset Management Policy is in place;
• Objectives, Strategies, and Plans arise from the Policy;
• Asset Management Enablers and Controls are in place;
• Established Asset Management Plans are being Implemented;
• Performance Assessment & Improvement activities are performed;
• Management Reviews.
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What is Life Cycle Management
Four basic cost-elements in the
Life Cycle of an Asset 4 Basic Elements of cost in the
Life Cycle of an Asset
E
A Acquisition [>]
R Routine Operation and
Maintenance [>]
R
Periodic Major Overhaul or
O Refurbishment [>]
O
Asset End of Life Resolution
Life Cycle R
•
•
End of Useful Life (Replace) [>]
Ultimate* End of Life (Retire) [ ●]
R * Coincides with final Facility Retirement and
O Closure
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What is Life Cycle Management
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LCM and PRO
• All of the primary processes of PRO are embedded elements
of any good Life Cycle Management strategy.
• Life Cycle Management should not be approached as a
totally independent effort from the other elements of PRO.
• If the other elements of PRO are not adequately integrated
with the overall LCM development and upkeep, then the
resulting LCM strategies will not be optimized.
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LCM and PRO
RB is considered in the
determination of initial LC
strategies
Continuous Improvement
drives future LCM forecasts
and strategies
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LCM and RBO
How are they related?
A frequent question is: How does Life Cycle Management relate to the
Reliability Basis?
More focus on the everyday Reliability Life Cycle More focus on the long-term
activity to detect & prevent major refurbishments and
failures Basis Management rebuilds, and replacement
In many ways, Life Cycle Management may be seen as an extension of the Reliability Basis.
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LCM and PAS-55
• PAS-55 does not specify program or process details for Life Cycle
Management. It simply states that LCM must be done. From its pages:
• “PAS-55 does not prescribe mandatory approaches, methods or tools for the
implementation of its requirements.”
• PAS-55 also does not specify a required type or scope of assets to be
covered by the organization’s LCM strategy.
• “An organization has the freedom and flexibility to define the boundaries of
the asset management system…”
• PAS-55 does expect that the scope of assets covered will be whatever
is necessary to ensure that the organization’s strategic objectives are
secure.
• “The scope of the asset management system should cover the full portfolio
of assets that are required for the successful delivery of the organizational
strategic plan…”
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Scope Considerations for LCM
at Indonesia Power
• Total Life Cycle Management would, in theory, include planning and
economic consideration of: (from prior slide )
- Initial Acquisition cost;
- Anticipated Operating& Maintenance costs over the Useful Life;
- Periodic major overhaul/refurbishments;
- End of Useful Life resolution (s);
- Ultimate End-of-Life resolution (i.e., final plant retirement and closure)
• Initial Asset Acquisition cost considerations clearly do not apply and will
not be a part of this effort.
• Ultimate Facility and Asset Retirement cost considerations also will not
be a part of this effort.
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AMT and Life Cycle Management
• Life Cycle Management under the AMT initiative at Indonesia Power
will be implemented in the context of both PRO and PAS-55.
• LCM will be more about the up-front forecasting of the major
refurbishment/replacement requirements of critical equipment and
other assets; and then developing strategies, schedules, and budgets to
rebuild or replace the equipment or asset as it approaches and reaches
its End of Useful Life.
• LCM will be less about the day-to-day ‘interposing’ activities that are
performed on an asset to maintain everyday good performance and
reliability (such as routine PdM and PM tasks from Reliability Basis).
• Obsolescence considerations MAY be included in some instances
(depending on the equipment).
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The Targets of LCM
• The domain of assets to which Life Cycle Management will
apply will be driven by Indonesia Power’s LCM Policy.
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How does SERP Apply to LCM
System Equipment Reliability TheSERP Process…
Prioritization
• SERP provides a systematic 1
• Identify the Systems
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The Inputs to LCM Strategy
Some of the Inputs to be considered in an LCM Strategy
To ensure that the LCMstrategy is fully • Current RBO strategy
optimized, many things will need to be • Current equipment condition
taken into account. Some of these ‘inputs’ •
•
Findings from recent PM &PdM activity
Historical Failures
are listed on the right to give you an idea • Outage Schedule
of the kind of information to be considered. •
•
Sister- equipment experience
Equipment Criticality
• Wear-out Forecasts
• Any Obsolescence Concerns
Input
Input Input • Refurbishment/Rebuild options
Input Input • Parts & Materials availability
• Required labor/contractor resources
Input Input • Required technical-support
• Success/failure of prior major rebuilds
Input Input • Options for resolving of End of Useful Life
• OEM recommendation
• Opinion of local Subject Matter Experts (SME’s)
Input
Input • Opinion of corporate SME’s
• Recommendations of other technical guidelines/resources
LCM • Organization capacity to execute the specified work
Input Input
Strategy • Drawings, specs, and other equipment-specific
documentation
• Economy-of-Scale considerations
• Consolidation-of-Opportunity considerations
• And More…
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Documentation of LCM
• Documentation of LCM strategy can take many forms.
• Different software tools may be used. The software used to hold the
Reliability Basis may even hold some parts of the larger LCM strategy.
• There is no absolute right or wrong way to document the LCM strategy.
ProprietaryProcess Description 28
Documentation of LCM
LCM Documentation Basics
• Information on the various factors forming the basis for major rebuilds and replacement
forecasts is recorded in LCM documentation.
• Typical documentation details will follow many of the INPUTS discussed earlier.
• Summaries of any technical analysis are included as appropriate. Location-information
for any separate, full reports is also given.
• LCM documentation will also include the name of the person responsible for keeping the
strategy current.
• LCM documentation will include identification of the party (s) responsible for carrying-
out the Life Cycle work when it is time to execute.
• The documentation tools that are used will provide triggers to ensure the making of new
responsible-person assignments whenever people move out of current positions.
ProprietaryProcess Description 29
Documentation of LCM
Other Considerations for LCM Documentation:
• The initial documentation needs to include an entry to indicate whether or not the
forecasted life between rebuilds, or forecasted time and expense to rebuild, is currently a
significant concern to the organization.
- Is the forecasted life between major rebuilds perceived as too short?
- Is the forecasted time and expense to rebuild perceived as excessive?
• If the answer is YES, the item is considered a target for further review (in the next phase)
for increasing interposing service-life or reducing time/expense of rebuilds.
• LCM documentation should also include a required entry explaining the rationale for all
adjustments that are ever made. This is critical to the upkeep of the "Knowledge Base"
that is supporting the living LCM Strategy.
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LCM Development - Personnel
A few points about the LCM Personnel
• Plant System Engineers and equipment-specific
Subject Matter Experts (SME’s) from the Head
Office must be in the lead in assembling the
asset LCM strategies.
• LCM personnel should be familiar with the basic
operation and maintenance of the equipment in
their area of responsibility.
• LCM personnel should be familiar with the
function and importance of their equipment in
the context of the overall System and the Plant.
• The LCM strategy for a piece of equipment is not
developed by only one person. Usually, the
input and opinion of several persons must be
obtained to produce an optimized strategy.
• P&ROSolutions will offer facilitating guidance in
the development of LCM strategies, and will
suggest a form and format for documentation.
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LCM Development - Process
• The process begins by identifying the assets that will be included in the scope of
the LCM effort.
• Each System Engineer will focus on the LCM strategy for the equipment in his
area of responsibility.
• One of the main objectives of the LCM effort is to correctly forecast the optimum
timetable for major refurbishment or replacement of the targeted assets.
These forecasts need to be rational, and should be based on the best available
information.
• Clearly then, many of the ‘Inputs’ discussed earlier will have to be known to the
System Engineer, or must be accessible to him from documentation or from
other persons.
• End Of Life forecasts for refurbishment/rebuild/replacement are generally
based on all other interposing activities remaining unchanged.
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LCM Development - Process
LCM Development- PROCESS MACRO IdentifyScope
ofAssets for
• Identify Scope of Assets for LCM
• Select an Asset for LCM study Selectan
Asset for
LCMStudy
• Gather Inputs
Continuous
SelectLCM Gather
• Analyze Inputs Strategy Improvement
Reviews
Inputs
Reviews
LCM
Options
34
LCM Development - Process
Identify the Scope of Assets for LCM LCMDevelopment – Process Macro
selected first
• Problem’s assets may be early tergets
Analyze
• The selection considers the expertise LCM
Options
Analyze
Inputs
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LCM Development - Process
Gather Inputs LCMDevelopment – Process Macro
databases
• Inputs may come from field observation Analyze
LCM Analyze
Inputs
Options
• Inputs may come directly from discussions
Identify
with other people LCM
Options
36
LCM Development - Process
LCMDevelopment – Process Macro
Analyze Inputs
IdentifyScope
• All available information is evaluated ofAssets for
LCM
37
LCM Development - Process
LCMDevelopment – Process Macro
Identify LCM Options
IdentifyScope
ofAssets for
• There will normally be many ‘options’ LCM
Identify
LCM
Options
38
LCM Development - Process
LCMDevelopment – Process Macro
Analyze LCM Options
IdentifyScope
be considered
• This step will almost always require
consultation with other people Analyze
LCM Analyze
Inputs
Options
Identify
LCM
Options
39
LCM Development - Process
Select LCM Strategy LCMDevelopment – Process Macro
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LCM Development - Process
Continuous Improvement Reviews LCMDevelopment – Process Macro
technical-judgments to be made
• Active LCM strategies should always
Selectan
Asset for
LCMStudy
be based on the best available
information SelectLCM
Strategy
Continuous
Improvement
Gather
Inputs
Reviews
Failure// Options
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A Word About
LCM in the Nuclear Power Industry
• The issues around Life Cycle Management at nuclear power plants are very complex.
- Operating safety is a critical concern. Therefore, extremely high margins of safety must always be
maintained. This usually translates into highly rigorous and detailed routine maintenance and
LCM strategies.
- Nuclear plant LCM must take into account the in-service degradation of components arising from
radiation exposure over the life of the plant. Periodic renewals of some components are required.
- Nuclear plant Life Cycle Management must also take into account the many environmental factors
related to residual and legacy radiation concerns at the time of plant closure.
• These and other issues are extremely important to the nuclear plant owners and to the
community, from the first day of operation until the day of closure and beyond.
• LCMPrograms at nuclear power plants are often very lengthy and very complicated, and
require significant resources to produce and maintain. Many nuclear power plants are
supported by hundreds of engineers.
• Effective LCM strategies for non-nuclear facilities can be much less complex.
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What Does LCM Success Look Like
The Attributes of Success for LCM tie back to the benefits described earlier…
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Where Are We Now
From a PAS-55 Perspective
Optimizingand
Learning Applying Embedding Integrating BeyondPAS-55
Innocence
45
Where Are We Now
From a PAS-55 Perspective
Optimizingand
Learning Applying Embedding Integrating BeyondPAS-55
Innocence
46
Where Are We Now
From a PRO Perspective
• A traditional, detailed PRO Assessment was not performed at Suralaya.
However, a 2-day PRO Workshop was conducted a few weeks ago.
There were also some informal discussions held afterwards.
• A summary report was prepared for the Workshop and discussions.
The observation: A strong Life Cycle Mgmt program is not yet developed.
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REVIEW
• Let’s quickly review the topics we just covered.
• Any questions so far?
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What’s Next
The Developmental Approach
LCM Development – Process Macro
• Many organizations make LCM way too
complicated. Our objective will be to create Identify Scope
of Assets for
an LCM strategy that will be PRACTICAL.
. LCM
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