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Asset Management Council 1205 TheAsset0602 PDF
Asset Management Council 1205 TheAsset0602 PDF
Technical Article 2 6
Partners, Corporate Members & Contacts 45 Organisational Competency and Individual Capability 36
Publisher: The Asset Management Council Inc For all enquiries, please contact:
Chief Editor: Ernst Krauss Kate Robertson
Editors: Ray Beebe, Nicholas Hastings, David Sherwin Asset Management Council
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Printing: RA Printing Tel: 03 9819 2515
ISSN 1839-7778
2011 2012 was an energetic and eventful year, with Sharing knowledge is a priority for the Asset Management
many successes already measured against our Strategic Council. We continue to place regular and free technical
Plan 2011 2015. content on our website for members, including our recent
publication Framework for the Asset Management Body of
We have been able to facilitate current practitioners Knowledge. We have created a Media Centre on our website
and deliver two trials for asset management experts to to share our alliance and members news, as well as our media
deliver specialised and tailored coaching within Australian releases and media received.
organisations. We also introduced National Seminars; the first
was held in conjunction with SAP in Perth in November 2011. Open access to public domain information has driven us
to develop an Intellectual Property policy. This policy is in
To educate the willing we have written into our policy that draft stage (sign off due June 2012) and will ultimately help
all education programs will only be carried out in white space. recognise and validify the technical material we produce. We
It has been very promising to see an increase in organisations continue to hold Exchange Weekend meetings to build and
requesting in-house Asset Management Fundamentals courses. exchange technical ideas between our thought leaders.
Our alliance with the Global Forum of Maintenance and Asset
Management has enabled us to help develop the international Our promotion of values and services has seen us expand
Accord. The Accord aims to assist organisations who wish to our Exchange Weekend meetings to twice a year. We have also
develop, align and compare asset management qualifications. expanded our branding through publicity, developing a logo
policy and additional templates that officers and members
Our communication platforms have expanded and you can can use.
now find the Asset Management Council on LinkedIn and
Twitter. It is exciting to see we have over 180 LinkedIn members To create awareness of the value of asset management we
in our group! have produced a white paper with an outlook to expand
our teams and governance structure so we can deliver more
To support the able we have spent considerable time services to our members.
and energy to grow the effectiveness of the ICOMS Asset
Management Conference. As a result we have a fully booked Looking to 2012 2013 we aim to continue to develop the
exhibition, over half of our sponsorship opportunities taken Asset Management Body of Knowledge via our Technical
and we are on track with delegate registrations. We continue Development Team and working group. We also plan to expand
to evaluate technical content in presentations with rigour to our strategic objectives alongside our Board with your input.
ensure we provide the asset management community with key
and relevant material.
We are beginning to gather force and momentum leading At present, Standards developments are rapidly advancing and
up to hosting the ICOMS Asset Management Conference, our the Asset Management Council has a keen focus to ensure
central meeting point for asset management and maintenance that the ISO version does not create a heavier burden on
professionals. organisations for compliance. Our key role is to assist with the
development of these management standards and ensure these
This journey has tested our relevance, purpose and connection
standards are able to be integrated with current management
with our members and asset management community. I
standards if organisations already have them.
am thrilled to report we are continuing along the right path,
evidenced by a sharpened uptake in Corporate Membership The Global Forum on Maintenance and Asset Management
during the lead up to the Conference. We now have over Certification project has been initiated to research certification
eighty Corporate Members representing diverse industries and schemes by member professional associations around the world
locations across Australia and the world. in order to compare and describe them. Developments for the
Certification project are progressing with the first phase being
This year we have achieved the highest number of participants
completed.
for the Asset Management Awards. I am incredibly appreciative
of the support from our Chapters who have communicated Collectively, we have defined certification as recognition of
the awards to local community. I am also appreciative of the individuals capabilities or competences. It certainly has been
members that put in considerable amounts of time, knowledge interesting to discuss each others approaches on the definition,
and energy to be Reviewers for the Asset Management Awards. development and assessment of competence. We aim for the
This is not a small undertaking. Certification project to develop systems and programs to assist
members of each participating organisation to define, develop,
We firmly believe our participation in the ISO committee (ISO
assess and recognise competence and expect to give an update
PC 251) is crucial for members and Australian industry. Over
on the second phase of this project in October.
the past two years we have been listening to your concerns
and issues in order to properly represent you as a stakeholder I look forward to meeting you in Hobart at our 2012 ICOMS
during the Standards developments. It is critical we can help Asset Management Conference and discussing your ideas and
our member organisations as these management standards are concerns for the future of asset management in Australia.
made available.
We also formed cross-functional decision making groups One of the reasons it still is operating in Australia, despite a
to bring together and integrate the knowledge from many very small base, is its ability to compete with overseas facilities.
different functions across the organisation to make decisions The asset is efficient, highly reliable and most importantly is
consistent with the one shared vision. highly predictable in its performance.
We made a point of celebrating team successes. If an What impact did it have on safety?
individual said, Hey Boss, I found something that was cheaper, Great question. When the asset became more predictable, all
that specific outcome wasnt celebrated in any significant way. of the business processes also became more predictable. You
If they were able to purchase an item of plant, bring it into the could build into the process all of the precursors to consider
organisation, have it installed effectively and safely, put in an to avoiding the plant breaking down. The same mindset goes
appropriate maintenance regime around it and the new item into avoiding having anyone getting injured in the work that
performed the way we wanted it to, then the whole team of they have to undertake. Its the same mindset and the same
people responsible for the item implementation celebrated process. Its the same...using all of the knowledge of the people
the success. around you to avoid something happening to an individual or
During the ICOMS Asset Management Conference, we will be holding two main sessions on Culture.
On Wednesday 6 June, join John Hardwick (Ausgrid), Catherine Smithson (Being Human Pty Ltd),
Peter Godfrey (Past National President, Engineers Australia) and Joo Ricardo Barusso Lafraia
(Duque de Caxias) to listen to and discuss Case Studies on Implementing Cultural Change and
Succeeding in Asset Management with Effective Cultural Change.
% Completed
TASKS
90% 92.7%
80% 80% 15000 15000
20000
% Completed
85%
85.3% 75% 75%
TASKS
10000 10000
80% 15000
70% 70% 5966 5966
75% 5000 5000
10000
65% 65% 2000 2000
1200 1200
70% 5966 559 559
437 437
186 421
186 421
60% 60% 5000 0 0
65% 2004-05 2004-052005-06 2005-062006-07 2006-072007-08 2007-082008-09 2000 2008-092009-10 2009-10 2004-05 2004-05
2005-06 2005-06
2006-07 2006-07
2007-08 2007-08
2008-09 2008-09
2009-10 2009-10
2010-11 2010-11
1200
559 437 186 421
Years Years YEAR YEAR
60% 0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
% Total Completed
% Total Completed
% Red Completed
% Red Completed Agreed Completed
Agreed Completed
Outstanding Outstanding
Years YEAR
% Complete
80.0% 71.6%
Tasks
75.0%
70.0% 70.0%
40%
70.0%
65.0% 65.0%
20%
65.0%
60.0% 60.0%
60.0% 2004-05 2004-05 2005-06 2005-06 2006-07 2006-07 2007-08 2007-08 2008-09
0% 2008-09 2009-10 2009-10
2004-05 2005-06 2006-07 2007-08 2008-09 Years
2009-10Years 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Years Years
% Total Completed
% Total Completed
% Red Completed
% Red Completed
% Total Completed % Red Completed
% Red Completed % Total Completed
* * Figure 3 Mains
On 2 March
On 22011,
MarchEnergy
2011, Australias
Energy Australias
network network
businessbusiness
changedchanged
its nameits
to name
Ausgrid
to Ausgrid
following following
the sale of
thethe
sale of the(poles,
electricity wires,
electricity
retail pits &business
business
retail pillars) Maintenance
which included
which included
the the
March 2011, Energy Australias network
rights torights
Energy Figure 2brand
business
to Australia
Energy changed
Field
Australia Services
its name toSubstation
name.
brand name. Maintenance
Ausgrid following Figurewhich
the sale of the electricity retail business 3 Mains (poles,
included the wires, pits & pillars)
o Energy Australia brand name. (~8,400 tasks per annum) Maintenance
The 2009/10 task completion results for the mains maintenance continue to demonstrate that once the task maint
backlogs have been completed, there is a real possibility of maintaining very high completion rates over successive per
demonstrated by the following tasks which returned completion rates between 97% and 100% for the year:
*On 2 March 2011, Energy Australias network business changed its name to Ausgrid following the sale of the electricity retail business which included the
Maintenance Activity Number of tasks due in 2009-10 Completed
rights to Energy Australia brand name.
Pre-bushfire season patrol tasks 118,985 poles 100%
Thermal Inspections 7,537 100%
Pole Inspections 140,101 96.8%
Underground Line Inspection 9,966 99.1%
6 The Asset Journal | Issue 2 | Volume 6 | 2012 Overhead Line Inspection 132,571 99.3%
Table 1 Mains (poles, wires, pits & pillars) Maintenance 32.8% of the failure modes have not changed in MTBF i.e.
within 10% of the original analysis MTBF
The above charts indicate there has been a sustained 16% of failure modes have experienced an increase in their
improvement in the delivery of maintenance across Ausgrid associated MTBF.
over the last 7 years. The question is have the improvements
only 4.2% of the failure modes reviewed showed evidence
in maintenance delivery been matched with an associated
of an decreasing MTBF, i.e. more failures.
decrease in the frequency of interruptions to electricity supply
being experienced by the network customers? The frequency The outcome of the reviews identified that 10.9% of the
of interruptions to supply is a performance measure as part on maintenance standards have an increased task period, resulting
our licence conditions**, and is measured by the SAIFI***. in annual OPEX savings, and that the 58.7% of the maintenance
The Ausgrid SAIFI performance for the last 7 years is shown standards reviewed now have increased task latitudes, which
in figure 4 below. will allow the operations field staff more flexibility in
scheduling tasks.
SAIFI Newcastle Storms The experiences to date have shown that a rigorous
1.4
maintenance analysis process can be used to support business
1.3
improvements in a number of areas as well as supporting
1.2
cultural changes in the delivery of maintenance. The ability to
1.1
review the maintenance requirements using real performance
1
data also has enabled a workable maintenance review
0.9
methodology to align the maintenance standards with the
0.8
changing business needs. This process is dependent upon
0.7
having established the systems and building the system with
0.6
2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10
the required feedback to enable the reviews to occur. This effort
however is not inconsiderable given the amount of data being
Figure 4 SAIFI trend analysed as shown in section 4, but still offers a reasonable
Figure 4 SAIFI trend
The underlying trend in SAIFI over the last 7 years has been downwards. There was a peak in 2008/09 due to thereturn
major on the investment in the analysis.
storms that hit Newcastle, Hunter and Central Coast regions in mid June 2009. There was also an abnormally low level of
events generating outages in 2009/10 due to stable weather patterns.
As part of the maintenance requirements review the MTBF of the individual failure modes over the data analysis period was
compared against the MTBFs found during the original analysis. This was intended so that we could a view of the
maintenance strategy impacts at a higher level, whilst the data was fully analysed at a individual failure mode level.
It is interesting to note that:
**Design, Reliability and Performance Licence Conditions For Distribution Network Service Providers, 1 December 2007. The licence
40% of the failure modes originally identified in the initial FMECA/RCM work have not had any conditional or
conditions are imposed by the Minister pursuant to item 6(1) (b) of Schedule 2 of the NSW Electricity Supply Act 1995.
functional failures recorded against them since the introduction of the new maintenance standards.
32.8% of the failure modes have not changed in MTBF i.e. within 10% of the original analysis MTBF
***System Average Interruption Frequency Index
16% of failure modes have experienced an increase in their associated MTBF.
only 4.2% of the failure modes reviewed showed evidence of an decreasing MTBF, i.e. more failures.
The outcome of the reviews identified that 10.9% of the maintenance standards have an increased task period, resulting in
annual OPEX savings, and that the 58.7% of the maintenance standards reviewed now have increased task latitudes, which
will allow the operations field staff more flexibility in scheduling tasks.
BIBLIOGRAPHY
The experiences to dateAM005 have -shown that a rigorous
Maintenance maintenance analysis
Requirements Analysis process
Manual,can be used toAustralia,
Energy support business
2004
improvements in a number of areas as well as supporting cultural changes in the delivery of maintenance. The ability to
review the maintenance Hardwick & Winsor,
requirements RCM
using real - Makingdata
performance thealso
Process moreaCost
has enabled Effective,
workable ICOMS
maintenance 2001, Melbourne
review
methodology to align the maintenance standards with the changing business needs. This process is dependent upon having
established the systemsHardwick
and building&the
Winsor, RCM
system with the-required
Making the Process
feedback to enable more Cost
the reviews to Effective. Onehowever
occur. This effort Year Later, ICOMS 2002, Brisbane
is not inconsiderable given the amount of data being analysed as shown in section 4, but still offers a reasonable return on the
Smith, Monitoring and Reporting for Success, ICOMS 2007, Melbourne
investment in the analysis.
BIBLIOGRAPHY
AM005 - Maintenance Requirements Analysis Manual, Energy Australia, 2004
The full paper is available in the member zone, amcouncil.com.au
Hardwick & Winsor, RCM - Making the Process more Cost Effective, ICOMS2001, Melbourne
Hardwick & Winsor, RCM - Making the Process more Cost Effective. One Year Later, ICOMS2002, Brisbane
Smith, Monitoring and Reporting for Success, ICOMS 2007, Melbourne
Chandler & Johnson, Implementing An Integrated Asset Management System, ICOMS 2009, Sydney The Asset Journal | Issue 2 | Volume 6 | 2012 7
3 Asset Management Sustainability
Tony Ang is the Acting Manager Asset Strategy & Risk for Hydro Tasmania. Tony holds a
photo 8 1 Tony Ang (no caption req)
technical article
Master of Engineering in Energy Technology and has extensive experience in wind farm
development and project financing, as well as price determination for the transmission,
distribution and retail functions in the Tasmanian electricity market.
Tony shares his experiences on Hydro Tasmanias asset management sustainability here...
Q1. Can you describe Hydro Tasmanias asset portfolio, to increase and broaden its training and development focus
including the diversity of asset ages and operating to address these skills issues and ensure sufficient ongoing
environments? capability into the future.
The hydro asset portfolio is extensive, aged, and diverse; Q3. How do you manage risk reduction within these
it is also geographically dispersed, operating in harsh environmental conditions?
environmental conditions. This portfolio is comprised of
First, our asset management and risk reduction strategy in
30 power stations, 61 major machines, 73 catchments
priority order is to:
and storages, about 200 dams, a huge portfolio of civil
infrastructures including 625km of roads and 190 of vehicular 1. SAFETY: Discharge all Safety, Duty of Care, Legislative,
and foot bridges. Regulatory and Operational Compliance obligations;
Most of our stations are in the range from 40 to 60 years of 2. SUSTAINABILITY: On a prioritised risk basis, maintain the
age built around 1950s to 1960s; except 9 stations between full productive capability of the portfolio; and
20 to 30 years. They generally display the characteristics of 3. REVENUE: establish reliable high value production lines
age related asset issues and also reflect the rigors of the to underwrite future revenue.
environment in which it operates.
The 10-year Asset Management Plan, in combination with the
Despite these challenges, the hydro portfolio is also inherently programmes of work and operational activities that support it,
robust and forgiving, provides great production flexibility has been developed specifically to achieve these objectives.
and remains largely fit-for-purpose and, most importantly,
Second, we conduct a portfolio-wide assessment of asset
is in a superior risk managed position than at any time in
condition and performance across all production lines and
the previous 10 years. These outcomes are a direct result of
evaluate the impact to business risk. These evaluations define
the transformation in asset and risk management practices
our capital and operational risk reduction programmes and
achieved over the past five years.
provide clear common focus to all personnel in directing
Q2. How does your team manage and achieve asset reliability their asset management activities. On a monthly basis, we
and availability within what must be harsh and often review the progress of our capital and operation risk reduction
unpredictable environmental conditions in Tasmania? programmes and review our asset condition and performance
information.
Management of these assets is achieved under an integrated
and comprehensive asset management system, comprising: Third, we continue to develop and train our staff to ensure
work is undertaken safely and to ensure knowledge is
a clearly defined Asset Management Policy;
transferred, improved and retained.
an Asset Management Strategy that prioritises Safety, Duty
of Care, Compliance and supports our Revenue Strategy;
Since its first hydropower development almost a
an holistic Asset Management Framework that includes
century ago, Hydro Tasmania has been a leader in
people development and continuous improvement; and
renewable energy development and is Australias
a detailed rolling 10-Year Asset Management Plan. largest producer of renewable energy.
Our asset management practices are based on the objective
Today, Hydro Tasmania uses a combination of
of increasing business enterprise value by balancing the,
water and wind power to harness natural energy
often conflicting, priorities of maximising revenue production
opportunities, optimising whole of life-cycle costs and
to sell on the national grid. Hydro Tasmania
prudently managing the risk position of the production also owns Momentum, the Victorian specialist
portfolio. electricity retailer. And through its consulting arm,
Entura, expertise in energy and water is shared
Ultimately, the business is reliant upon a pool of hydro specific
with governments, utilities, developers and
expertise to understand and manage the risks associated
international companies.
with, and maintain the performance of, the hydro generation
portfolio. Consequently, we increasingly need to develop Hydro Tasmania is owned by the Government of
these skills internally. Having successfully initiated Generation Tasmania and currently employ over 800 people
Technician and Apprentice development programmes as and have assets worth around $4.8 billion.
an initial step towards self-sufficiency, Hydro is now looking
MAINTCON 2012
2nd Middle East Maintenance Conference &
Exhibition from 2 to 5 December 2012.
This conference is co-organised by the Gulf Socity
of Maintenance Professionals and Bahrain Society
of Engineers, and supported by the AMBoK and Landscape
Global Forum on Maintenance and Asset
Management. maintcon.org
Glossary Definitions
The Technical Development Team (TDT) has introduced a new technical
document, which defines each key discipline, element and sub-element found
within the Asset Capability Delivery Model and the Asset Management Landscape
document.
2012
Conference June 4-8 Wrest Point Hotel, Hobart
training courses
May September
Thurs 17 Newcastle Asset Management Fundamentals Wed 5 Adelaide Asset Management Fundamentals
June October
Fri 8 Hobart Asset Management Plans Wed 17 Brisbane Asset Management Fundamentals
Wed 24 Melbourne Asset Management Fundamentals
July
Thurs 5 Melbourne Asset Management Fundamentals November
Thurs1 Newcastle Asset Management Fundamentals
August Thurs 8 Perth Asset Management Fundamentals
Tues 14 Sydney Asset Management Fundamentals
Wed 22 Perth Asset Management Fundamentals
Infigens Woodlawn Wind Farm will be an important addition to our Reduced remote accommodation costs
Australian business, located in an area with a good wind resource, an Reduced travel costs
excellent connection to the grid and a supportive local community,
Resources
says Miles George, Managing Director at Infigen Energy. Furthermore,
the wind farm will aid Australias transition to a low carbon economy Continuity of planning resources
and contribute to Australias commitment to reduce greenhouse gas Rapid access to experts
emissions.
Quality
The project is expected to save approximately 140,000 tonnes of Consistency of work management compliance
greenhouse gas emissions per annum. The level of renewable energy
Improved communication of maintenance plan
generation is equivalent to removing over 32,000 cars from Australian
Improved quality of history
roads each year.
Improved reporting
For more information: infigenenergy.com
For more information: +612 6571 1537, pb@mpe.com.au
water mining
gas forestry
infrastructure hydro
people aquaculture
knowledge electricity
The Asset Journal | Issue 2 | Volume 6 | 2012 13
ICOMS 2012 Asset Management Conference
icoms technical team
How to set up and extract data from Joo Ricardo Barusso Lafraia
an Asset Management System General Manager
Achim Kreger Duque de Caxias Refinery/Petrobras, Brazil
Vice President EAM Solutions, SAP
Walldorf, Germany
14:30 Open Forum: How do you determine your organisations asset management maturity
Why is AM maturity an important concept and why is AM maturity not part of the ISO AM?
Using ISO 15504 Process Capability Standard
Process Maturity and Organizational maturity What is the difference?
What is AM maturity and how to measure?
Audience Round Table and Discussion
Speakers include John Hardwick, Ausgrid, Glenn Hopkins, Technology One, Peter Kohler, ITSR, Deryk Anderson, Santos
12:00 LUNCH
Standards and Data, Chair: Deryk Anderson
13:30 Panel Session: ISO 15926 and ISO 5500x Asset Management Standards
Panellists: Peter Kohler Asset Management Council
Danny Elia Industry Funds Management (IFM) VIC
Achim Kreger SAP Bckeburg Germany
Greg Williams PricewaterhouseCoopers VIC
12:00 LUNCH
13:30 The Importance of Top Level Management Asset Management for Small Business Reliability Based Deterioration and
Support in Driving Asset Management Presenter: Peter Oliver SAS Mechanical Pty Ltd Replacement Decision Model for
Culture and System Change. NSW Australia (AMBoK ID 922) Community Buildings
Presenter: Benjamin Hayden NRG Gladstone Presenter: Sujeeva Setunge VIC
Operating Services QLD (AMBoK ID 932) (AMBoK ID 926)
14:00 Smashing Through Asset Managements Implementing Asset Management in a Resource Use of Quantitative Risk Modelling Across
Glass Floor Constrained Environment Different Asset Types
Presenter: Steve Doran Infrastream Pty Ltd NSW Presenter: Andrew Sneesby GHD Pty Ltd TAS Presenters: Chuong Ngo & Rick Beaupre
(AMBoK ID 929) (AMBoK ID 924) TransCanada Pipelines (AMBoK ID 942)
14:30 Asset Management and FM Procurement and Cost Reduction Strategies for a Paint Asset Investment Planning for the US Army
Contracting Strategies: Innovations, Pitfalls Manufacturing Plant Corps of Engineers Hydropower Plants
and Lessons Learnt Presenter: Indra Gunawan Monash University VIC Presenter: Rodney Dell MWH NSW
Presenters: Joanne Teagle & Mark Misko (AMBoK ID 930) (AMBoK ID 971)
Clayton Utz VIC (AMBoK ID 934)
15:30 Working Group on AM Council input to Corporate to Coalface - Development and A Probabilistic Approach for Deterioration
GFMAM Project on Relationship Between Delivery of an Integrated AM Competency Based Prediction and Cost Optimization of
Maintenance and Asset Management Training Framework Community Buildings Using Monte Carlo
Asset management and maintenance are NOT Presenter: Tom Carpenter Institute of Quality Asset Simulation
synonymous. However, maintenance is one of the Management VIC (AMBoK ID 937) Presenter: Hessam Mohseni RMIT University
key processes that delivers outcomes in asset VIC (AMBoK ID 940)
management, and has a significant impact across
16:00 many of the subjects that comprise the scope of Formulating & Implementing Effective Asset Maintenance Function Review
asset management.? Management Strategies for Large Mobile Bulk Presenter: Larissa James, GHD Pty Ltd QLD
Materials Handling Plant (AMBoK ID 949)
Presenter: Steve Saflekos, BMT WBM VIC
(AMBoK ID 943)
09:30 Six Sigma in Asset Management Asset Mapping on the Rail Network to Improve
Presenter: Gerard Gan Mulgrave Engineers VIC Maintenance Efficiency
(AMBoK ID 927) Presenter: Mike Mundy Transfield Services SA
(AMBoK ID 969)
10:00 Product Services Systems and Their Risks Risk Intuition Blurring the Lines Between
Presenter: John Mo RMIT University VIC Procedure and Practice
(AMBoK ID 944) Presenter: Greg Williams PricewaterhouseCoopers
VIC (AMBoK ID 935)
12:30 Lunch
13:00 AGM
Asset Management for Small Business Reliability Based Deterioration and Replacement
Decision Model for Community Buildings
P Oliver, AMBoK ID: 922
R Edirisinghe S Setunge & K Zhang, AMBoK ID: 926
Small business can benefit just as much as large businesses,
government departments and utilities from the application The local government in Victoria is responsible for around $7.6
of Asset Management and its associated techniques and billion worth of expenditure on capital works and recurrent
methodology. The method of application differs due to scaling services each year, and the management of $60 billion of
and reduction in funding, but grouping of businesses can community assets. Among them, community buildings are
overcome that limitation. the second largest class of assets that local governments own
and manage. As the majority of existing community building
stocks are maturing, the local governments seek more reliable
Implementing Asset Management in a Resource
deterioration prediction and renewal decision making strategies.
Constrained Environment
This paper presents a reliability based methodology for renewal
A Sneesby, AMBoK ID: 924 of community buildings through building component analysis.
The cost effective and sustainable management of any nations Gamma process is considered to be an appropriate approach for
large infrastructure portfolios is critical to its citizens standard predicting building element deterioration because it accounts
and cost of living. Implementing an appropriate standard of for the temporal variability of degradation. The reliability based
asset management cost effectively and successful is not easy. renewal methodology this paper proposes is composed of a
Many programs have been started and dropped due to the high stochastic gamma process model for deterioration prediction
cost, however this can be done very cost effectively. In this paper and optimal age based replacement policy for renewal of the
and presentation the authors draw on their global experience infrastructure. A case study of building inspection data from
in assisting other national bodies to implement national asset one of the local governments in Victoria are used in the life-
management frameworks and improvement programs. Roger time analysis model. The model is extended with age based
has now been heavily involved in the development of national preventive replacement policy to identify the optimal age for
programs for Australia, New Zealand and the United States of replacement. Further, the paper discusses the analysis of the
America and has witnessed approaches in many parts of the data and model results.
world. He has documented his experiences and the lessons
learned in his manual Best Practice Approaches to Achieving Six Sigma in Asset Management
Sustainable Asset Management in your Company, City, State
G Gan, AMBoK ID: 927
and Whole of Nation;. Andrew has worked in the United States
of America, Canada, United Kingdom, South Africa and Australia Six Sigma is a quality management methodology designed
assisting large Government agencies in developing their to improve operational performance. As a part of the broader
AM programs. theme of continuous improvement, many companies have
successfully deployed Six Sigma projects to reduce defects,
increase reliability, improve control, minimise cost and optimise
profits. This includes manufacturing, service, process, logistics,
finance, healthcare, and telecommunications industries and so
on. In a world where companies gain competitive advantages
by providing the best products or services over the best cost,
attention should be given to explore and expand possibilities
with Six Sigma implementations. This paper discusses the Six
Sigma methodology, its tools including Pareto Analysis, Cause
and Effect Diagrams, Scatter Diagrams and so on, and how they
can contribute to asset management. Finally, some success
stories are shared.
Smashing Through Asset Managements Glass Floor The Importance of Top Level Management Support
in Driving Asset Management Culture and
S Doran, AMBoK ID: 929
System Change
Strategic asset managers today are chipping through what
B Hayden & C Windsor, AMBoK ID: 932
some may describe as a glass ceiling; in conveying vital Asset
Management (AM) messages to boards and regulators. This Top level management support is essential to drive change in
paper/proposed presentation suggests that strategic asset an organisations asset management culture and systems. This
managers also work over a glass floor, which represents large paper highlights the authors observations and lessons learnt
and rarely penetrated improvement potential at the frontline during a tumultuous period in the life of Gladstone Power
of AM and substantial, unaddressed risk exposure. Current Station. With station availability falling dramatically, a change in
management focus tends to be on high value assets, which are management culture and a belief in asset management have led
relatively low in number, individually. Meanwhile, the greater to new asset management practices and a new system based on
volume of lower value assets are managed generically, even PAS 55. Availability is now at world class levels, with Production,
though each asset has a unique operating context. Examples of Maintenance, Projects and Technical Services in control of the
this include desktop modelling and the use of asset class plans. plant. This paper will discuss a management strategy and the
The aim of this paper is to demonstrate, through method and six structured support used in the implementation of a new asset
applied examples, how this glass floor can be smashed through. management system and an associated culture change. Lessons
learnt are presented as a case study to support similar changes
in other organisations along their asset management journey.
Cost Reduction Strategies for a
Paint Manufacturing Plant
Asset Mangement and FM Procurement and
I Gunawan & A Karan, AMBoK ID: 930
Contracting Strategies: Innovations, Pitfalls and
In this economic downturn many businesses are struggling to Lessons Learnt
survive and have a healthy bottom line. Hence implementing a
J Teagle & M Misko, AMBoK ID: 934
cost reduction program for the facility is essential to offset the
increased manufacturing cost. Energy, water and industrial waste This paper discusses contracting and procurement strategies
disposal are the major consumer of the manufacturing cost in asset management and facilities management (FM). The
in a paint manufacturing plant apart from raw materials. This past decade has seen heightened interest within industry in
paper presents the proven cost reduction strategies focusing exploring innovative contract delivery models for facilities
on the above mentioned cost elements. The objective is to management, rather than relying on construction contract
identify some of the cost reduction opportunities which the strategies to deliver asset management and FM services. Key
business can adopt to enhance their profit margin. Majority to a successful contract delivery strategy is detailed planning
of the cost reduction opportunities presented have a payback during the procurement phase of a project and clearly defined
period of less than 6 months requiring small capital investment contract objectives. As the facilities and asset management
and efficient use of resources. The key focus of this paper is to sectors become more sophisticated, they demand procurement
present energy optimization programs for the facility. Significant and contracting strategies which recognise their unique
potential savings is achievable through the implementation of features.Procurement and contracting strategies development
the proposed cost reduction programs. in FM/asset management over recent years has seen an
increased use of collaborative contracting and performance -
based contracting to provide contractors with an incentive to
Development of an Open Source Data
improve performance. In addition, interactive procurement has
Management Tool
provided a means for industry to provide feedback on proposed
K Atkinson, AMBoK ID: 931 procurement and contracting strategies and risk allocation.
Making good asset management decisions requires access to
good asset data, yet missing and corrupted data is ubiquitous.
This paper reviews maintenance literature to determine the
requirements for a data management tool to assist professionals
in avoiding the traditional inefficient, biased and unreliable
ad-hoc editing. A free, simple, flexible, and transparent tool,
consisting of an open source software application and
accompanying documentation is proposed and a phased
implementation set out. A trial implementation of the tool
demonstrates gains in efficiency, accuracy and transparency,
which increases the likelihood that decisions will be made
correctly, honestly and in a timely manner.
Risk Intuition Blurring the Lines Between Procedure Physical Asset Resource Management Organization
and Practice Sustainability and the Role of Asset Management
Information System
G Williams, AMBoK ID: 935
C Piyabandu, AMBoK ID: 938
Asset management is inherently a risk based decision making
process. Practitioners in asset management are more inclined to The author is working for the water and wastewater asset
consider uncertainty relating to a course of action than perhaps management industry in Queensland, Australia. This paper
many other professionals, normally because their training and presents his experience in asset management practices in the
experience biases them towards structured approaches and Local Government sector in Australia and New Zealand and in
avoidance of an unplanned outcome. But practitioners are also implementing Asset Management Information Systems (AMIS)
unlikely to embrace formal risk management procedures, often in two local government authorities in New Zealand and its
because the existing frameworks are overly prescriptive and can applicability in improving organisational sustainability in the
direct risk thinking to slices of risk; rather than the whole pie. This Australian context. In October 2011, Australian Government
paper challenges the distinctions between risk management Productivity Commissions report on the urban water sector
as procedure, and risk management as practice with respect to has identified pathways to improve resource allocation
asset management functions. and efficiency. The report highlights the importance of
the organisations to adopt flexible approaches in planning
and delivery of supply augmentation together with an
Corporate to Coalface Development and
environmental and economic risk management approach. It
Delivery of an Integrated AM Competency
also raised the issue of inadequate asset management practice
Based Training Framework
in the regional water authorities and its possible effects to
T Carpenter C England G McLay & B Burford, AMBoK ID: 937 human health and the environment. Organisations face the
IQ-AM has developed a program of integrated nationally challenge of providing the infrastructure services when per
accredited AM training competencies under the Australian capita costs of service provision are on the rise. Author proposes
Quality Training Framework, from Certificate IV through to use of AMIS software that is flexible in integrating with other
Graduate Diploma levels. Based on input from an industry based corporate information systems, as the way forward to reduce
Steering Committee; the AMC competencies, PAS55 and the costs. AMIS development can be carried out sustainably through
IIMM were also used as sources. The program also addresses the module by module development with private and public sector
requirements of the draft ISO 55001 AM Standard Requirements. partnerships, which can include universities as well. Such an
This paper provides an overview of the original industry based integrated information management system would enable the
drivers for the development of the program, the development organisations ability to meet the challenges of the future.
and the preparation of delivery of this program and the
challenges in implementing both AM and the program itself. The A Probabilistic Approach for Deterioration Prediction
paper further outlines the success of an integrated vocational and Cost Optimization of Community Buildings Using
training program in the workplace and demonstrates that it not Monte Carlo Simulation
only improves the skills and knowledge of the participants, but
H Mohseni S Setunge G Zhang & P Kalutara,
simultaneously delivers key organisational needs and facilitates
AMBoK ID: 940
and embeds Corporate to Coalface cultural change.
Prediction of deterioration of the community buildings
can be complex due to the large number of elements and
influencing factors. High variability of the condition data adds
to the complexity and a deterministic approach often cannot
be used to derive realistic deterioration progression curves.
Probabilistic methods have been explored as an alternative in
a current research project supported by six local councils in
Victoria. A Markov process has been calibrated with the building
condition data acquired from the projects partners utilizing a
non-linear optimization technique. A Genetic Algorithm model
with a Monte Carlo sampling method has been used for the
convergence of the results. The paper also presents a cost
optimization method using a Monte Carlo random optimization
technique to assist the decision making process of the asset
managers in the field. A software program developed for the
project integrates the process with a comprehensive asset
management data-base capabilities and a user-friendly interface
to facilitate the industry requirements.
Use of Quantitative Risk Modelling Across Different Product Services Systems and Their Support
Asset Types
J Mo, AMBoK ID: 944
C Ngo R Beaupre J McVean R Sahney & J Yip,
Recent trend among manufacturers of complex engineering
AMBoK ID: 942
products such as Rolls Royce is to offer their business as a
TransCanada (TC), a North American Energy Infrastructure owner combination of product and services. This approach is often
and operator, has a number of tools and processes in place to described as servitization of products and is an approach to
manage risk; however, a consistent and systematic asset-level focus on selling whole of system solution including pre and post
view of risk exposure resulting from the operation of these sales services to asset owners. Product services systems are the
physical assets was needed. As such, the company launched outcome of servitization that forms a marketable set of products
a project to develop a Risk Registry which encompasses a risk and services aiming at fulfilling customer needs. Complex
inventory that has the ability to do quantified risk modelling. product services systems have to focus on links, interactions and
The implementation and use of this Risk Registry was intended alignments which require system design and operation. As asset
to facilitate TCs understanding of the range of its risk exposure managers are trying to outsource some of their maintenance
by asset, threats, and consequence type, and the benefits and support activities, the services provider will end up taking
of associated mitigation activities over time. Overall this will significant part of the risks of sustaining capabilities of the asset
allow the company to better understand its risk exposure for the duration of the services contract. This paper examines
and mitigation options across multiple assets. The project some of the key features of product services systems and
has proceeded to a point where two fundamentally different their dynamic boundaries to understand how they should be
assets have been modelled and analysis has been undertaken. managed, what engineering analysis is required and what risks
As part of this effort, clarity regarding the optimal process for they impose on the contractor.
quantifying risks and undertaking analysis has largely been
established. The methodology used for the first phases of
Hybrid Approaches to Classification of Condition
this work is described herein. The approach allows for clear
Monitoring Data
articulation of work plan, cost and deliverables for each phase,
maximizing the value TransCanada realises from this important P McMahon, AMBoK ID: 946
initiative. Over the last decade condition monitoring data gathering has
experienced a big technological advance and, in the process,
Formulating & Implementing Effective Asset has become easier to access. The quantity of, and the rate of
Management Strategies for Large Mobile Bulk acquisition of condition monitoring data have accelerated over
Materials Handling Plant the last ten years and there is a need to find less expensive,
faster and more efficient ways of utilising the data gathered
S Saflekos, AMBoK ID: 943
for maintenance planning purposes. A hybrid approach
Asset management strategies required to optimise life and which improves classification accuracy without requiring an
maintain plant in a safe condition will include: Routine structural increase in the size of the asset condition data sets is proposed.
integrity inspections; Routine verification of protective and safety Software is utilised as part of this approach to improve data
devices; Change management procedures to ensure original extraction and separability approaches. The importance of
design intent is maintained; Software Security and Management preserving the data and transforming it with an intelligent tool
Systems software changes can be as critical as unauthorised is investigated. This hybrid approach enhances the automatic
structural/mechanical changes and must also be appropriately mapping capability of asset condition monitoring data without
managed. Maintenance procedures and schedules - should take increasing costs. The performance of this hybrid approach is
into account the procedures set out in the OEMs operating and better when compared to traditional classifiers for condition
maintenance manual and the local experience and conditions. monitoring data sets because subject matter experts can utilise
Additional condition monitoring techniques provide regime the clustered data from the first stage to provide more timely
over and above the OEMs recommendations significantly and accurate interpretation of an assets condition. Integration
reducing the risk of unexpected breakdowns. Strategies include of asset condition and condition monitoring approaches offers
NDT of critical pins/axles, vibration measurements, oil and grease a mechanism to lower the cost of analysis of asset condition
sampling, wear measurement, polarisation index testing, current information by reducing the amount of time required to
signature analysis, thermography, power quality checks. Forward interpret the data. It also improves asset risk management by
budget planning for modifications, repairs, maintenance. providing more accurate information.
Lubrication schedules - adequate lubrication is essential Critical
Spares Holdings - essential to minimise the risk of extended
down time due to lack of spare components, Operator/
Maintainer Training personnel must be properly trained in
the use of the correct operating and maintenance procedures
for the machine. Machine documentation essential data and
machine history must be safely stored.
Asset Investment Planning for the US Army Corps of The NSW Independent Transport Safety Regulator
Engineers Hydropower Plants (ITSR) - Asset Management Project
R Dell, AMBoK ID: 971 P Kohler & A Rowland, AMBoK ID: 973
The USACEs Federal Hydropower organization had been The ITSR Asset Management Project aims to improve the safety
struggling to motivate and obtain suitable funding to modernize and competitiveness of NSW rail transport. The project seeks to
their aging assets. The solution needed to support the business achieve those outcomes by creating a collaborative focus upon
process for producing optimized Asset Investment Planning the way in which assets are managed by NSW rail organisations.
(AIP) scenarios based on an agreed approach and methodology. The multi year program is a key ITSR strategic project and aims
The proposed projects need to be justified based on the risk to: Increase the awareness of the value provided by good asset
reduction and efficiency benefits using a transparent and management, such as: Increased safety outcomes; Improved
repeatable process. It also needed to quantify the energy business outcomes for individual organisations; and Improved
losses and gains in terms of reduced greenhouse gases from competiveness of the industry as a whole. Enable NSW rail
replacement energy sources in the event of an asset failure. The organisations measure and improve the way in which they
business cases for the proposed investment project included manage their assets. Increase the level of assurance provided by
the financial costs, benefits, benefit/cost ratios, net present the management of assets within NSW rail organisations. The ITSR
value and CO2 reduction values. Based on the agreed business Asset Management project has developed a number of toolsets
process, approach, and methodology, the USACE decided to to enable industry to measure and improve the way in which they
have an AIP Tool developed that they could use and refine over manage their asset base. Those toolsets have been successfully
time. The system requirements for the AIP Tool were defined, trialed by industry, thus providing a consistent methodology from
the system designed and built. The organizations asset data was which to measure and record the changes in asset management
validated and loaded and several 20 year optimized investment performance of the NSW rail industry. A key aspect of the project is
plans and resulting risk profiles were produced based on an the development of a collaborative approach with industry using
agreed set of funding scenarios. the Asset Management Project to deliver a win win outcome, that
is increased safety outcomes for the NSW public and ITSR and
increased business outcomes for industry. This presentation will
RCM or RCA Which Comes First? The Chicken
focus upon why ITSR believes that the project is needed, how the
or the Egg
project is working and how a collaborative approach can work in a
M Drew, AMBoK ID: 972 regulated environment.
The chicken or the egg causality dilemma arises from the
expression which came first, the chicken or the egg Chickens
hatch from eggs, but eggs are laid by chickens, making it difficult
to say which originally gave rise to the other. In todays world
of manufacturing we are faced with an ever increasing amount
of solutions surrounding maintenance improvement. All these
solutions are offering maximum return on investment for the
shareholders, with significant reductions in downtime, increase
in production output, less accidents, all of which are very
attractive to any business. Two solutions on offer are the use of
Reliability Centred Maintenance (RCM) and Root Cause Analysis
(RCA), but which comes first?
Assetivity
Writing Pad and Pen Sponsor
K2 Technology Lycopodium
USB Proceedings and Internet Station Sponsor Water Bottle Sponsor
K2 Technology is an Engineering Consultancy which has been Lycopodium Asset Management Pty Ltd has its headquarters in Perth
operating for more than 10 years and specialises in Asset Management Western Australia with offices in Brisbane (Queensland) and Manila
Services, Engineering, and Technical Support for industry. K2 provides (Philippines). We are an engineering consultancy providing a range
experienced, professional staff and integrated multi-discipline teams of Reliability and Maintenance Engineering services to clients in the
capable of delivering engineering and technical solutions to our clients Petrochemical, Oil & Gas, Mining, Minerals Processing, Manufacturing
at all phases of asset life from concept through to abandonment. We and Marine sectors. Established in 1999, our company is recognised
have capabilities to assist our clients in all areas of Asset Management as a leader in the Asset Management field. We pride ourselves on
and Support Services including development, implementation and providing practical solutions for our clients and have significant
life-cycle management of all Operations and Maintenance processes. experience in re-engineering existing systems for Brownfield
Between our Perth and Brisbane offices K2 has a large team of technical operations as well as developing and implementing new maintenance
personnel covering, engineering, reliability, maintenance, supply management systems for Greenfield developments.
chain, operations, integrity management and all supporting areas.
Contact: Mark Wellard mark.wellard@lycopodium.com.au
Included within our technical personnel is our Advanced Database
Systems group which is made up of 5 personnel who specialise in
the development and implementation of bespoke database systems
for our clients. This group is also responsible for the development,
management and implementation of our proprietary ADAM system
which is a web based system we use to build, review and analysis
maintenance system data. All K2 services are structured, resourced
and managed to ensure we deliver fit for purpose on time, on cost
solutions in accordance with our clients requirements. Project Performance International
Contact: Amanda Barwell amanda.barwell@K2techno.com.au Tuesday Morning Tea Sponsor
CIEAM
CIEAM is a Cooperative Research Centre (CRC) dedicated to improving
The Asset Management Council
the efficiency and sustainability of infrastructure and engineering
The Asset Management Council Ltd is a non-profit organisation asset management. CIEAM is focused on innovative, industry-directed
committed to the promotion and education of optimal asset research and development, education, and commercialisation in an
management practices in industrial, commercial, academic and integrated approach to asset lifecycle management. Our research is
government organisations. Our mission is to create a broad awareness focused on producing practical solutions to real world industry issues,
of the value of asset management, nurture a common understanding such as ageing national engineering infrastructure, under-investment
of asset management, and provide a portal to asset management in asset maintenance, optimising the cost of maintenance and the
knowledge and resources. With a vision of enabling benefits for all total cost of engineering asset ownership, an innovative integrated
from effective use of assets, the Asset Management Council provides asset management regime across all, industry sectors and Addressing
Certification, Training, Conferences, an Asset Management Body of climate and sustainability issues. CIEAM works with industry partners
Knowledge and alliance with the Global Forum of Maintenance and to develop innovations that meet their needs and contribute to
Asset Management to its members and the ever-increasing global improving the engineering asset management industry sector. We
asset management community. focus on real-life asset management problems faced by industry today.
Contact: Sally Nugent info@amcouncil.com.au Contact: Susan Lambe susan.lambe@cieam.com
NCS Australia
National Concrete Solutions (NCS) specialise in concrete repair,
OMCS International
waterproofing, and durability enhancement for the commercial,
civil, industrial and infrastructure sectors. With support from leading The core business of OMCS International is consulting, training and
manufacturers, NCS and its experience team of trained applicators implementation of reliability improvement methods which, are
are able to install various quality systems to suit a multitude of based on RCM principles but build on what you already have rather
environments. These systems include flexible and liquid membranes, than start from scratch. The core of our business is known as Planned
Geo Synthetic Clay Liners, crack injection, industrial floor coatings, Maintenance Optimisation (PMO2000). Over the past fifteen years
waterproofing, and structural strengthening for rehabilitation and OMCS International and its licensees have guided implementation of
remediation of concrete structures. NCS offices are located in Albury, reliability assurance using PMO2000 on over 200 client sites in many
Sydney, Melbourne and Brisbane and service interstate and regional companies, industries and countries. Our training programs have
locations where opportunities exist to provide unique solutions, be been delivered to thousands of operations and technical people. We
that on a project-by-project basis or a more permanent arrangement. currently have a network of over a dozen licensee companies all over
Contact NCS to receive a personal consultation to meet your needs. the world to which we license the right to distribute, implement and
train in our methods. If you would like to know more please visit our
Contact: Kelly Reaburn kellyr@ncsaustralia.com.au
stand at the ICOMS conference.
Contact: Rob van Dullemen rob@omcsinternational.com
As market leader in enterprise application software, SAP (NYSE: SAP) Contact: Paul Coady pcoady@thiess-services.com.au
helps companies of all sizes and industries run better. Founded in
1972, SAP (which stands for Systems, Applications and Products in
Data Processing) has a rich history of innovation and growth as a
true industry leader. Today, SAP has sales and development locations
in more than 75 countries worldwide. SAP applications and services
Transfield Services
enable more than 109,000 customers worldwide to operate profitably,
adapt continuously and grow sustainably. Our mission is to help Transfield Services is an operations, maintenance and construction
companies of all sizes and industries to run better. Our vision is to help services business. We operate globally in the Resources, Energy,
the world run better. Industrial, Infrastructure, Property, and Defence sectors. We deliver
asset management services across all phases of the asset lifecycle, from
Contact: Ben Johnson ben.johnson@sap.com
concept and creation, to services that sustain, optimise and enhance
our clients assets. With diverse global expertise spanning multiple
industries, we share knowledge and challenge thinking to develop and
implement innovative solutions that deliver real value for our clients. We
complement our technical capability and experience with an in-depth
understanding of our clients needs. Our unique approach enables us to
Sharp Business Solutions deliver continuous improvement in asset performance, and sustain long
Sharp Business Solutions was founded in January 2005 to help term relationships with our clients and partners.
customers obtain the best possible return on their investment in their Contact: Elmer Hung HungE@transfieldservices.com
assets through the use of asset management systems & services. The
company has built upon its depth of knowledge in the IBM Maximo
Product Suite gained over many years of implementing Maximo across
different industry sectors. We are an Advanced IBM Business Partner
and an expert in the IBM Maximo product suite. We combine these
skills with our business, IT and project management capability which The Asset Partnership
allows us to deliver professional asset management services to our The Asset Partnership is amongst Australias leading consulting
Clients at a value rate. organisations. We specialise in helping our clients make efficient and
Contact: Julie Rainbow jrainbow@sharpsolutions.com.au effective use of their investments in physical assets. We work with you to
identify operational constraints and improve throughput, optimise life cycle
support costs, and deliver outputs with reduced safety and operational risks.
Our highly experienced consultants have experience in many industries
and sectors including Mining and Minerals Processing, Defence, Power
Generation, Utilities, Aerospace, Food and Beverage and Transport.
Contact: Stephen Young stephen.young@assetpartnership.com
CIEAM
Speaker: Prof Lin Ma
Certification
Decision Support in
Lunch B Linear Asset Renewal
NRX Global
Speaker: Stephen Crampton
Rapid Master Data Projects
Afternoon tea in the Cloud
Stage
Tasman Stage
Buffet
Innovators
Platform
Internet
Stations
Speakers
Corner Buffet
LOWER LEVEL
Boardwalk
UPPER LEVEL
Riverview
Competition 1
What questions
would you ask?
Take a look at the photograph at right. Tell us
the first two questions you would ask upon
viewing the situation if you were a:
A Lawyer
A Maintenance Manager
An Asset Manager
Competition 2
2011 Winner
How would you
capture asset
management in
a photograph?
Rummage through your archives or take a
photograph that captures asset management!
The winners of the competitions will be The photo is of the site manager at Alinta Wind Farm near Geraldton
announced at the Farewell Drinks at this Western Australia. In order to have a good asset management culture at
a remote wind farm, the site manager is the most important person. He
years conference!
needs to be on board with the processes, data requirements and drive this
through to the maintenance contractors, Murray Wall, Infigen Energy.
Balance Sheet
FOR THE YEAR ENDED 31 DECEMBER 2011
Dec 31 2011 Dec 31 2010 Dec 31 2011 Dec 31 2010
ASSETS Other Assets
Current Assets 3001 Certification Scheme
Current/Savings Depreciation of Certification -68,000.00 -34,000.00
Bendigo AMC 3001 Certification Scheme - Other 170,000.00 170,000.00
AM Council Foundation 4,965.00 0.00 Total 3001 Certification Scheme 102,000.00 136,000.00
Bendigo AMC - Other 75,108.60 21,227.95
Chapter Funds 0.00 67,899.29
Total Bendigo AMC 80,073.60 21,227.95
Training Courses
Petty Cash Depreciation Courses -8,461.12 -7,576.32
Pay Pal Account 9.29 0.00 Training Courses - Other 12,000.00 12,000.00
Petty Cash - Other 52.99 121.85 Total Training Courses 3,538.88 4,423.68
Total Petty Cash 62.28 121.85
Total Other Assets 105,538.88 208,322.97
Total Current/Savings 80,135.88 21,349.80
TOTAL ASSETS 368,886.75 336,051.21
Accounts Receivable
Accounts Receivable 67,193.52 79,932.77
LIABILITIES
Total Accounts Receivable 67,193.52 79,932.77
Current Liabilities
Other Current Assets Accounts Payable
Chapter Bank Accounts Accounts Payable 39,535.54 27,389.26
Chapter Account 20,777.96 0.00 Total Accounts Payable 39,535.54 27,389.26
Illawarra Chapter 7,124.14 0.00
Credit Cards
Perth Chapter
Mastercard AMC 3,488.21 0.00
Perth Cheque Account 21,868.46 0.00
Total Credit Cards 3,488.21 0.00
Perth Gold Term Deposit 1 10,000.00 0.00
Perth Gold Term Deposit 2 10,000.00 0.00 Other Current Liabilities
Total Perth Chapter 41,868.46 0.00 Payroll Liabilities
Annual and Long Leave 5,048.30 5,380.00
Sydney Chapter (PA 109) 6,938.56 0.00
Payroll Liabilities - Other 5,012.03 6,229.66
Total Chapter Bank Accounts 76,709.12 0.00
Total Payroll Liabilities 10,060.33 11,609.66
Pre Paid Expense Account 28,160.86 18,612.20
Pre Paid Income Account 29,780.00 4,950.00
Stock Asset 4,228.20 0.00
Tax Payable -6,455.43 -9,553.45
Total Other Current Asset 109,098.18 18,612.20
Unclaimed Creditors 0.00 13,303.00
Total Current Assets 256,427.58 119,894.77 Total Other Current Liabilities 33,384.90 20,309.21
Fixed Assets Total Current Liabilities 76,408.65 47,698.47
Capital Items
Long Term Liabilities
Computers & Equipment -11,953.26 -9,233.26
Certification Discounts 206,746.00 207,896.00
Depreciation Equipment 15,170.82 14,536.27
Total Long Term Liabilities 206,746.00 207,896.00
Computers & Equipment - Other 3,217.56 5,303.01
TOTAL LIABILITIES 283,154.65 255,594.47
Total Computers & Equipment
NET ASSETS 85,732.10 80,456.74
Furniture & Fittings
Depreciation Fittings EQUITY
-2,393.04 -1,778.04
Furniture & Fittings - Other Opening Bal Equity 156,127.66 156,127.66
6,095.77 4,308.50
Total Furniture & Fittings Retained Earnings -75,670.92 12,964.04
3,702.73 2,530.46
Net Income 5,275.36 -88,634.96
Total Capital Items 6,920.29 7,833.47
TOTAL EQUITY 85,732.10 80,456.74
Total Fixed Assets 6,920.29 7,833.47
the risk evaluation criteria developed as part of establishing
the context.
Care must be taken with the use
The three major types of analysis are described as follows:
of semi-quantitative analysis...
Qualitative Analysis
Consequences may be determined by modelling the
Qualitative analysis uses words to describe the magnitude outcomes of an event or set of events, or by extrapolation
of potential consequences and the likelihood that those from experimental studies or past data. Consequences may
consequences will occur. These scales can be adapted or be expressed in terms of monetary, technical or human
adjusted to suit the circumstances, and different descriptions impact criteria, or any of a number other criteria referred to in
may be used for different risks. HB 436:2004 Guidelines to AS4360:2004 Risk Management 1.
Qualitative analysis may be used: In some cases, more than one numerical value is required to
specify consequences for different times, places, groups
as an initial screening activity to identify risks which require or situations.
more detailed analysis;
where this kind of analysis is appropriate for decisions; or
where the numerical data or resources are inadequate
for a quantitative analysis.
Semi-quantitative Analysis
In semi-quantitative analysis, qualitative scales such as those
described above are given range values. The objectives are to
improve consistency which is often lost in the use of words
and to expand the ranking scale beyond that usually achieved
in qualitative analysis. Letters or numbers are used to produce
a sequential risk ranking without relativity between risks.
The process does not achieve realistic quantitative values for
risk such as is attempted in quantitative analysis. Although
numbers may be used i.e. 1 to 10, the value allocated to
each description may not bear an accurate relationship to
the actual magnitude of consequences or likelihood. The
numbers should only be combined using a formula that
recognises the limitations of the kinds of scales used. 1
Australian Standard AS 4360:2004 Risk Management
Risk management has become, over the last 40 years, a mature Identify Risks: Identify what, why and how adverse outcomes
process with a number of supporting international standards. can arise as the basis for further analysis.
And recently, ISO 31000:2009 Risk management Principles Analyse Risks: Determine the existing controls and analyse risks
and Guidelines was developed to be utilized to harmonize risk in terms of consequence and likelihood in the context of those
management processes in existing and future standards. It provides controls. The analysis should consider the range of potential
a common approach in support of standards dealing with specific consequences and how likely those consequences are to occur.
risks and/or sectors, and does not replace those standards. ISO Consequence and likelihood may be combined to produce an
31000:2009 is not intended for the purpose of certification. estimated level of risk.
Some standards, such as the Canadian standard CSA-Q850-97, Evaluate Risks: Compare estimated levels of risk against the
are based on the Australian risk management standard AS/NZS pre-established criteria. This enables risk to be ranked so as to
4360:2004 Risk Management which is internationally recognised identify management priorities. If the levels of risk established
asRisk
good Management Standards
practice. This standard provides a generic framework
Risk management has become, over the last 40 years, a mature are low, then
process withrisks may fall into
a number of an acceptable category and
forsupporting
establishing the context standards.
international of, identifying,
Andanalysing,
recently,evaluating,
ISO 31000:2009 Risktreatment
management may not be required.
Principles
treating, monitoringwas
and Guidelines and communicating
developed torisk.beItsutilized
companionto harmonize risk management processes in
existing and
document future standards.
HB 436:2004 It provides
Risk Management a common
Guidelines Treat
approach in support
Companion Risks: Accept
of standards and with
dealing monitor low-priority risks. For other
specific risks and/or sectors, and does not replace those standards. ISO
risks, 31000:2009
develop and is not a specific management plan
implement
tointended
AS/NZS 4360:2004 provides generic guidance (with relevant
for the purpose of certification.
examples) to establish and implement effective risk management which includes consideration of funding.
Some standards, such as the Canadian standard CSA-Q850-97, are based on the Australian risk
processes in any standard
management organisation.
AS/NZS 4360:2004 Risk Management which isMonitor and Review:
internationally Monitor and review the performance of
recognised
as good practice. This standard provides a generic framework for establishing the risk the context
management and of,
changes which might affect it.
For organisations that have a large, complex and safety critical
identifying, analysing, evaluating, treating, monitoring and communicating risk. Its companion
asset base, AS/NZS(IEC)
document HB 436:20043931:1998 Risk Analysis
Risk Management of Technological
Guidelines Companion to AS/NZS 4360:2004 provides
generic Application
guidance (with relevant examples) to establish AS/NZS(IEC) 3931:1998 Risk Analysis of
Systems Guide, provides a basic model for the and implement effective risk management
processes in any organisation. Technological Systems.
selection of methods to analyse technical risk.
For organisations that have a large, complex and safety critical Thisasset
standard provides
base, guidelines for selecting and implementing
AS/NZS(IEC)
3931:1998 Risk Analysis of Technological Systems Application analysis
Guide, provides a basic
techniques for riskmodel
associated with the life cycle of
AS/NZS 4360:2004 Risk Management
for the selection of methods to analyse technical risk.
The blocks that comprise AS/NZS 4360:2004 are summarised technological systems. The standard includes guidelines for
AS/NZS 4360:2004 Risk Management selecting and implementing risk analysis techniques, and enables
as follows:
The blocks that
quality and comprise
consistencyAS/NZS
in the planning and execution of risk
4360:2004 are summarised as follows:
analyses and in the presentation of results and conclusions.
Communicate and Consult:
Establish the Context
The following
Communicate tablewith
and consult defines the various risk analysis methods
internal
and external
listed in IEC 3931. Many of the at
stakeholders appropriate methods are covered by existing or
Com m unicate and Consult
Mark Jordan, Chapter Chair During the meeting, present Victorian members warmly thanked
Greg Williams for his leadership in his role Chapter Chair for the past
twelve months. Andy Webb (GHD, member since 2007) was elected
Chapter Chair and John Harris to Deputy Chair. There is an evident
strong committee made up of fourteen members, with recently
elected committee members Prince Luckman and Anthony Gray.
In April 2012, Krishan Aggarwal and Anthony Cuskelly delivered the
Jag Shinde, Chapter Secretary presentation Carbon Tax and What it Means to Industry. This
was a highly topical subject that drawing over ninety attendees.
The presentation was followed by extensive debate and was only
curtailed by the arrival of the traditional pizzas and wine.
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The Asset Journal | Issue 2 | Volume 6 | 2012
RESOURCES | ENERGY | INDUSTRIAL | INFRASTRUCTURE | PROPERTY | DEFENCE