Integrity delivery through Asset Management System Standard AS 55001 Presented by: Ernst Krauss, CFAM Date March 2015 Summary Project delivery needs rework to become more effective Integrity delivery needs to be part of Project delivery Organisations can no longer afford Project failures at the scale experienced in the past AS 55001 could provide a vehicle to achieve better project delivery, increase productivity, increase return on investment Project delivery  Various studies show a low success rate of Projects  In Australia, approximately 32% of Projects are successful  Megaprojects >$ 2b have about 60% success rate globally  Project success only measured in terms of schedule and cost  Other success factors? Project Outcomes delivered Understand Business Requirements Integrity / Reliability / Production Support functions Contracts and Suppliers Operational Readiness Commissioning & Start up Integration Function Project Management Governance Delivery of Operational Facilities not Hardware alone 4 Some facts  All Projects are subject to change - How managed - How communicated How do operational requirements keep up with changes? - How executed • • How competent are Project personnel Personnel selection on previous involvement Recognition of new technologies Understanding of Operating context and requirements Management practices Interpersonal skills Delivery of Hardware Balance of cost / schedule / ‘quality’ 5 Factors Affecting Delivery: Advisian’s 4th Dimension:  On Time    Quality On Budget Traditional Project delivery focus On Time - Delivery to schedule – highly visible - Processes / Productivity On Budget - Control of Budgets– highly visible - Change Control Required Quality - Inherent Integrity / Reliability Availability/Maintainability/ Supportability - OPEX Sustainability– the 4th Dimension - Fully functional Assets - People competency - Functioning Risk / Integrity / Operating Management System Asset Management Synthesis Strategic Asset Management Framework Stakeholders Services / Commodities Leadership Organsiational Objectives Asset Management Objectives Production / Integrity Assurance Decision Processes Capability & Culture Roles and Responsi bilities Processes and Enablers Risk Management Performance Monitoring / Improvement Service requirements and Objectives Enable service delivery Strategic Asset Plans Asset Management Plan Integrity Management Plan Capital Investment Plan Maintenance plans Asset retention planning Disposal Plan (including obsolescence Management) 7 Integrity Management System 8 AS / ISO 55000 - the 7 requirements The Asset Management System It encompasses these elements: 1) Organizational context 2) Leadership 3) Planning 4) Support 5) Operation 6) Performance evaluation 7) Improvement AS 55001 support processes  Systems Engineering  Acquisition processes and associated standards  Support analyses and logistics planning  Configuration management  Operations and Maintenance plans and processes  Continuous improvement processes  These processes describe a supportive delivery system that together with the risk, financial, organisational and other none technical requirements of the AS 55001 standard can result in the redefinition of effective project delivery 10 Improved Process delivery Benefits to Operations: • Improved Start up (reaching full production faster ) • Fully functional Organisation • Eliminate requirements to adjust organisation to suit issues • Clarity of roles, responsibilities and requirements to safely operate and improve • All systems and measurements in place that demonstrate Operational Integrity • Efficiently manage risk , cost, performance 11 Integrity delivery through understanding all Operational Requirements 12 Manage Requirements Requirements Management is concerned with:  Understanding the goals of the organisation and its stakeholders (or customers)  Transformation of the goals into functions and the constraints applicable to the development of Assets or Services  These directly link to the AS 55001 sections on context and purpose: - Understanding the context of an organisation and - Transforming strategic intent into tangible plans and actions Integrity matters Safety / Risk management Operations / Maintenance Make safe / SCE’s Plant control and limits of permitted operations Activities and competencies Corrosion / condition Integrity boundary Integrity relevance Advisian 14 Integrity Requirements Management Provides the opportunity to –  Engage in a systematic approach extracting, documenting and organising integrity systems requirements  Define the integrity system, documentation, processes, organisational structures and responsibilities necessary to manage and demonstrate integrity of the whole production system form the start of the operation  Provide critical input into strategic and operational Asset Management Plans that chart the major activities, capital expenditure and OPEX plans to achieve efficiency in operations management Assurance through Requirements definition and auditing 16 Projects delivering Requirements… …provides benefits through  Real value creation by linking risk, integrity, cost and performance capability of the deliverables and support systems  Avoidance of Value erosion by - Deliverables assurance (Stakeholder needs) - Changes no longer obscure original intent - Closer link with Stakeholders through regular communication and validation of achievements - Integrity of project agreement and scope  All deliverables and outcomes identified during the project phase and are incorporated as operational structure into the Asset Life Cycle 17 Shared view of managing Assets and Integrity "If any one idea about leadership has inspired organizations for thousands of years, it's the capacity to hold a shared picture of the future we seek to create“ Senge “The fifth Discipline” • • • Projects need to deliver to the Business requirements Project delivery needs to include Operations requirements Functional performance requirements provide guidance for expected outcomes during useful Asset life 18 Thank you for your interest Your questions??? 19 END