Copyright 2005 Advantica Inc. (USA Only) and Advantica Ltd. (Outside USA).

. All rights reserved by the respective owner.

IGEM Engineering Update
Tuesday 5
th
June 2007

Copyright 2005 Advantica Inc. (USA Only) and Advantica Ltd. (Outside USA). All rights reserved by the respective owner.
PAS55 Asset Management
Colin Weir
Sales Director UK/Europe

Content
PAS55 Asset Management:
What is it and why all the fuss?
PAS55 in more detail
Advantica approach
Some early lessons
Other IAM initiatives
Defining Asset Management
Asset Management is simply the optimum way of
managing assets to achieve a desired and sustainable
outcome. (BSi PAS 55)
Decision making!
Making the best decisions in the management of the life
cycle of assets - balancing cost/risk/performance in those
decisions
The Balancing Act!
Balancing conflicting drivers . . .
Performance
Risk
Cost
Cost
Lifecycle of Assets
INVEST IN
NEW ASSETS
OPERATE
ASSETS
REPAIR
ASSETS
REPLACE
ASSETS
DISPOSE OF
ASSETS
MAINTAIN
ASSETS
OPTIMISING COSTS, RISKS
& PERFORMANCE
cradle to the grave
with optimal cash spend
Asset Management - Holistic Approach
Maintenance
Business
Strategy
Construction
Inspection
Asset Mgt
Policy
Procurement
Management
Review
Asset Management
- The Process
Performance
Review
Operations
Data
What is all the fuss?
Realisation that Asset Management is important
Development of PAS55
Ofgem letter that all Gas and Electric utilities will achieve
voluntary certification to PAS55 by April 2008
Why is it of interest to our clients?
Asset Management is their core business
Business imperative
Good asset management will deliver real business benefit
Poor asset management can have major impact
water industry
electricity industry
gas industry
Why is it of Interest to our clients?
Asset Management is their core business
Business imperative
Good asset management will deliver real business benefit
Poor asset management can have major impact
On the CEOs agenda
PAS55 provides a framework for benchmarking
PAS55 - What is it?
Standard for Asset Management
System
Launched on 11 May 2004 (2 parts)
Management standard similar in format
to ISO 9000, 14001
P-D-C-A
Developed by IAM
Not a formal standard its a BSi PAS
(Publicly Available Specification)
Scope is the physical assets
Generic
First real industry standard for Asset
Management
PAS55 - definitions
PAS55 is specifically intended to cover the
management of physical infrastructure assets and in
particular the assets that form the main element of our
built environment such as utility networks, power
stations, railway systems, oil and gas installations,
manufacturing and process plants, buildings, airports
etc.
Physical
Assets
F
i
n
a
n
c
i
a
l
A
s
s
e
t
s
Human
Assets
I
n
f
o
r
m
a
t
i
o
n

A
s
s
e
t
s
Intangible
Assets
Total Business
PAS-55 Scope
Important interface:
motivation, communication, roles
& responsibilities, knowledge,
experience, leadership, teamwork
Important interface:
reputation, image, morale,
constraints, social impact
Important interface: life
cycle costs, capital
investment criteria,
operating costs
Important interface:
condition, performance,
activities, costs &
opportunities
Vital context:
business objectives, policies,
regulation, performance
requirements, risk management.
Asset Management Objectives
PAS55 states that the objective of asset management is to
ensure (and to be able to demonstrate) that assets deliver
the required function and level of performance in terms of
service or production (output), in a sustainable manner, at
an optimum whole life cost without compromising health,
safety, environmental performance, or the organisations
reputation.
Balancing conflicting
drivers . . .
Performance
Risk
Cost
Asset Management Definition
For the purposes of PAS55, asset management is defined
as systematic and coordinated activities and practices
through which an organisation optimally manages its
assets, and their associated performance, risks and
expenditures over their lifecycle for the purpose of
achieving its organisational strategic plan
Asset Management - Holistic Approach
Maintenance
Business
Strategy
Construction
Inspection
Asset Mgt
Policy
Procurement
Management
Review
Asset Management
- The Process
Performance
Review
Operations
Data
PAS55 requirements
ASSET
MANAGEMENT
SYSTEM 4.1
M
a
n
a
g
e
m
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n
t
r
e
v
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w

4
.
6
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&
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c
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4
.5
P
o
l
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&
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4
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fo
, ris
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e
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m
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t
&
P
la
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n
in
g
4
.3
Implementation
& operation
4.4
ASSET
MANAGEMENT
SYSTEM 4.1
M
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a
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v
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4
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&
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4
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A
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&
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4
.3
Implementation
& operation
4.4
4.1 General Requirements
4.2 Asset Management Policy and Strategy
4.2.1 Asset management policy
4.2.2 Asset management strategy
4.3 Asset Management Information, Risk Assessment and Planning
4.3.1 Asset management information system
4.3.2 Risk identification, assessment and control
4.3.3 Legal, regulatory, statutory and other asset management requirements
4.3.4 Asset management objectives
4.3.5 Asset performance and condition targets
4.3.6 Asset management plans
4.4 Implementation and Operation
4.4.1 Structure, authority and responsibility for asset management
4.4.2 Training, awareness and competence
4.4.3 Consultation and communication
4.4.4 Documentation
4.4.5 Document, data and information control
4.4.6 Operational control
4.4.7 Emergency preparedness and response
4.5 Checking and Corrective Action
4.5.1 Performance and condition measurement and monitoring
4.5.2 Asset related failures, incidents, non-conformances and corrective & preventive action
4.5.3 Records and records management
4.5.4 Audit
4.6 Management Review and Continual Improvement
PAS 55 The 21 Requirements
ASSET
MANAGEMENT
SYSTEM 4.1
M
a
n
a
g
e
m
e
n
t
r
e
v
ie
w
4
.6
Checking &
Corrective
Action 4.5
P
o
lic
y
&
S
t
r
a
t
e
g
y
4
.2
AM info, risk
Assessm
ent
& Planning
4.3
Implementation
& operation
4.4
ASSET
MANAGEMENT
SYSTEM 4.1
M
a
n
a
g
e
m
e
n
t
r
e
v
ie
w
4
.6
Checking &
Corrective
Action 4.5
P
o
lic
y
&
S
t
r
a
t
e
g
y
4
.2
AM info, risk
Assessm
ent
& Planning
4.3
Implementation
& operation
4.4
PAS 55 5 Steps to Certification
Awareness & buy-in
Gap analysis
Preliminary assessment
Stage 1 assessments
Stage 2 assessment
Senior Mgt Buy-in
Form Steering / Working Groups
Create Business Awareness
Internal High Level Gap Analysis
Internal Detailed Gap Analysis
Remedial Actions
Certification Mtgs
Business Presentations
Remedial Actions
Staff Communication / Education
High Level Audit -Broad & Shallow
Meetings With Office Based Staff
Staff Communication / Education
Detailed Audit - Narrow & Deep
Meetings With Site-based Staff
High Level Audit -Broad & Shallow
21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1
G
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4
.
1
PAS 55
Ref
Overall
Gap
Analysis
4
.
2
.
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4
.
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4
.
3
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4
.
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.
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4
.
6
Steering
Group
Gap Analysis
A B D C E F
Process
Owners
Analysis Steps 1. Brief Steering Group / Process Owners
2. Initiate process questionnaire / information gathering
3. Summarise questionnaire results / feedback to Steering Group
Lessons learned
Making senior management aware of the scope of PAS55 and the
benefits which should be derived from applying best practice asset
management. Senior Managements visible support and commitment
is fundamental.
Ensure the broader organisation understands PAS55, its
benefits, the organisations commitment to gaining certification and
most importantly, their role in gaining and retaining certification.
Prepare a full project plan and put in place an appropriate project
structure - how you tackle the PAS55 certification process can
significantly impact how easily and quickly you gain PAS55
certification. This includes looking at how responsibility for each of the
21 requirements maps to the existing organisation structure and
individuals current day jobs. Setting up the right project structure can
drive the required ownership (particularly for gap identification and
closure), making the process of gaining certification simpler and
ensuring the principle of continuous improvement is embedded from
an early stage.
Lesson learned contd
Gaps should be anticipated and planned for - although many processes,
procedures and systems will be in place, gaps will nevertheless exist and
need to be addressed. Sufficient time and effort should be budgeted.
Use existing management systems wherever possible to show how PAS55
requirements are met bridging gaps to knit existing systems together
Understanding PAS55 terminology can be difficult for staff
translate PAS55 into familiar language
Clear linkages across the lifecycle of an asset are not always in place
e.g. between business strategy and asset management policy and strategy.
Data quality and consistency is often an issue which must be addressed
Feedback loops, all the way back up the organisation are often unclear,
inconsistent or missing.
IAM other initiatives
The Institute of Asset Management (IAM) is dedicated to
furthering the knowledge and understanding of Asset
Management, seeking to spread good practice and
develop decision support tools and techniques. In addition
to continuing to play a pivotal role in the ongoing
development of PAS55, the IAM has additional projects
underway in areas such as:
the development of a Competency Framework
Asset Management Assessment Framework project.
Summary
Asset Management is core
Business imperative
Good asset management will deliver real business benefit
Poor asset management can have major impact
PAS55 supported by the regulator
PAS55 is an excellent framework
Tackled properly, certification is readily achievable
Based on continuous improvement
There is real experience available to help