ASSET INTEGRITY

METW1253
ASSIGNMENT 2: ISO 55000: PALM OIL COMPANY

BY:
ASHYFAH BINTI ABDUL HAMID MET211005
ANNUR SARA BINTI HISHAM MET211037
NUR ADILA AISYAH BINTI ALI MET211034

SCHOOL OF CHEMICAL AND ENERGY ENGINEERING

UNIVERSITI TEKNOLOGI MALAYSIA
 1 SCOPE OF THE CERTIFICATION ASSESSMENT

1.0 Introduction
SAI Global conducted an audit of PT Serikat Putra – Lubuk Raja Mill and its Supply Bases
on 29 February – 4 March 2022 with Major Nonconformities identified. Follow up audit
and clarifying supply chain module has been conducted on 21 July, 2 September and 4
November 2022 for verification of corrective action taken by the organisation and 21
November 2022 for clarifying the time bound plan. Please note that this report is subject
to independent review and approval. Should changes to the outcomes of this report be
necessary as a result of the review, a revised report will be issued and will supersede this
report.

1.1 Audit Objective

This is initial (certification) audit. The purpose of this audit was to determine compliance
of your organization’s management system with the audit criteria (Generic RSPO
Principles and Criteriafor Sustainable Palm Oil Production, May 2013 and RSPO
Supply Chain Certification Standard, CPO Mill, Module E Mass Balance, November
2014) and its effectiveness in achieving continualimprovement and system objectives.

1.2 Scope of certification

The scope of certification is the CPO production from one (1) Palm Oil Mill and two
(2) FFB supplybase owned by PT Serikat Putra. The supply chain of mill is audited
including bulking station.

1.2.1 Palm Oil Mill

Lubuk Raja Mill PT Serikat Putra

Location: Desa Sialang Godang, Kec. Bandar Petalangan,
Kab.Pelalawan RiauMill capacity: 75 ton FFB/hour
GPS Location: 00º 07' 34,68" N 102º 07' 34,79" E

1.2.2 Oil Palm Estate

There are two supply base estates:
Lubuk Raja Estate PT. Serikat Putra
Location: Desa Sialang Godang, Kec. Bandar Petalangan, Kab.Pelalawan Riau
GPS Location: 00º 07' 25,90" N 102º 07' 34,86" E

Bukit Raja Estate PT. Serikat Putra

Location: Desa Sialang Bungkuk, Kec. Bandar Petalangan,
Kab.Pelalawan RiauGPS Location: 00º 10' 54,50" N 102º 08' 42,81" E

1.3 Location of mill and estates

PT Serikat Putra mill and estates are located in Riau Province. The geographical
coordinate of themill and estates are shown on Table 1.
 Table 1: Mill and Estates GPS Locations included in certification assessment

MILL AND ESTATE EASTING NORTHING

Lubuk Raja Mill (LRF) 102º 07' 34,79" 00º 07' 34,68"
Lubuk Raja Estate (LRE) 102º 07' 34,86" 00º 07' 25,90"
Bukit Raja Estate (BRE) 102º 08' 42,81" 00º 10' 54,50"

Figure 1 Map of Mill and Estates Location

1.4 Other certificates held

Table 10: Certificates Held by Mill and Estates

MILL/ESTATE OTHER CERTIFICATION HELD

Lubuk Raja Mill PROPER – Blue Level 2015

Source: PT Serikat Putra, March 2016

1.5 Organizational information/contact personPT Serikat Putra

JL. Jend. Sudirman, Kav 76-78, Indofood Tower,
Jakarta 12910Phone : (+62-21) 5795 8822
Fax : (+62-21) 5793 7504
Contact person : Head of Environmental and CSR
2.0 Asset Management (definition and scope)
Asset Management is the process which supports all the facilities of Lubuk Raja Mill
in order to apply all required rules & regulations (including Lubuk Raja Mill standards)
for the physical assets.
Asset Management comprises of all the coordinated actions implemented by the
company to warrant safe operations during the asset life cycle while meeting company
objectives. Asset Management strategies involve different levels of the organization
(different disciplines, departments or teams) that share the same objectives and vision to
assure that procedures and standards will be applied according to internal, local and
international regulations.

Figure 1: Relation between Asset management and other processes

All the operational facilities of Lubuk Raja Mill shall be compliant to all applicable rules
& regulations with regard to the design, construction, maintenance and decommissioning
of their physical assets. The following actions shall be completely applied with regarding
the assets compliance evaluation:
• Verify the applicability of Lubuk Raja Mill Standards.
• Verify the applicability of local regulations (governmental rules).
• Verify the applicability of international standards and best engineering practices.

Knowledge of the associated risks of the assets installed in every operational facility is
crucial for the organization and will contribute to implementing control barriers
(mitigation actions), clarifies the scenarios for making critical decisions and establishes
the risk levels acceptance criteria in the company. A solid Asset Management System can
contribute with tangible benefits to the organization and detects improvement
opportunities, fulfils gaps and provides for compliance with legal and corporate
requirements. To achieve this, is necessary to cover all the asset’s life cycle phases. Please
find below the minimum details that shall be checked per phase and per asset:
Design/procurement and fabrication phase:
• Be compliant with the requirements of the Lubuk Raja Mill Project Management
Handbook.
• Verify the quality of the material used during the fabrication process.
• Apply the required non-destructive & destructive testing, calibrations or tests
according to the applicable codes.
• Verify the qualification/certification of the personnel involved in all phases.
Installation, commissioning and start-up phase:
• Prepare all the necessary procedures to warrant a safe installation process of the
assets(including logistic scopes like lifting, transporting, etc.).
• Before commissioning, carry out risks assessments according Lubuk Raja Mill’s
Risks Management policy. Develop all the technical information associated to the
assets (P&ID’s, ABS, Risk Assessments, mechanical drawings, cost tracking, etc.).
• Hand over to the operation units all the technical information associated to the
assets(P&ID’s, ABS, Risk Assessments, mechanical drawings, etc.).
• Carry out a robust commissioning process (all the departments responsible shall
beinvolved such as: engineering, operations, process and maintenance).
Financial control (during all phases):
Control and register all the costs associated with the life cycle of the asset (design,
installation, tests, maintenance, etc.). This is achievable when a solid Work
BreakdownStructure and Asset Breakdown Structure are in place.
Operations and logistics:
Develop all the necessary operational manuals to warrant safe operations. All the
rolesand responsibilities shall be clearly defined.
Maintenance and inspection activities:
All the required maintenance activities shall be carried out as per internal and
externalstandards.
Integrity plans/assessments:
All the required maintenance activities shall be carried out as per internal and
externalstandards.
Regulatory compliance:
All the applicable regulations shall be adhered to (including internal and external
audits).
Replacement/decommissioning:

A replacement/decommissioning plan shall be created according to the best

 applicableengineering practices and standards.

Compliance
Evaluate

Repair/
Design/
Replacement/
Procurement &
Decommission
Fabrication
-ing

Installation,
Maintenance
Comissioning
& Inspection
& Start-up Update
Execute

Operations

Plan

Figure 2: AI program for equipment life

cycle/phases

2.1 Asset Management compliance and auditing process.

The Asset Management interacts with different processes inside the organization to complete
a transparent auditing process and compliance accomplishment. All the operational facilities
shall comply with the requirements of in Malaysia or international authoritiesin order to
receive the approval to operate. The maintenance document management system of each
operational facility shall register, track and preserve relevant information related to
compliance for auditing and demonstrability purposes (CMMS can be also used for these
tasks).
 Figure 3: Processes interaction for compliance and auditing, OT Asset Management.

2.2 Asset management (implementation documents and key elements)

Lubuk Palm Oil ensures that all operational facilities abide by the following minimal (but
not exclusive) paperwork related to the application of asset management (this includes any
applicable national or international standards not specifically listed here):

Engineering
⯈ Lubuk Palm Oil Refinery Building Specifications.
⯈ Lubuk Palm Oil Refinery Engineering Technical Standards.
⯈ Work Breakdown Structure.
⯈ Piping & Instrumentation Diagrams standard.

Operations
⯈ Lubuk Palm Oil Company Operating Manual.
⯈ Management of Change (MoC).

Maintenance:
⯈ Asset Management.
⯈ Maintenance Standard.
⯈ Asset Breakdown Structure.
⯈ FMECA Procedure.
⯈ Maintenance Blue Print (CMMS workflow).

HSSE:
⯈ HSSE Manual.
⯈ OFPS – Palm oil refinery (Oil tanking) Fire Protection Standard.

International Standards / Regulations

⯈ API 653 / 510 / 570 / 2610 / RP581.
⯈ ISO 55000 / 55001/ 55002.
⯈ ASME B31.3 / B31.8 / Sec I / II / V / VIII / IX / X, ANSI/ISA-S5.1-1992, IEC 81346-
1:2009, IEC 14764, INS-0032, ISA S5.1.
 ⯈ NEN-EM-ICE 60812, EEMUA 159, OCIMF, NFPA, CDI-T.
A list of key elements (supported by the documents listed above) that the facilities should
take into consideration for the implementation of the Asset Management System is shown
below:
a. Maintenance Management Plan & Performance Standards.
b. Asset Register.
c. Asset integrity approaches (Risk Assessment Procedures, etc.).
d. Management of Change.
e. Internal basic documentation (P&ID’s, ABS, etc.).
f. Plant inspections and technical audits.
g. Anomaly & Incident reporting and investigations.
h. Corrective actions and tracking/register system.
i. Statistical analysis and trending.
j. Learning from events.

Asset Integrity Management (scope and basic phases)

Asset Integrity Management is a collection of systematic procedures used in organizations
where different departments collaborate to create, use, operate, upgrade, and dispose of
assets and systems in a cost-effective organization while protecting the environment, the
wellbeing of the workforce, business continuity, and the company's reputation. This idea
must be used over the asset or system's entire lifecycle and is covered by the organization's
asset management policy.:

Figure 4: Asset Integrity Management elements and processes

2.3 Asset Register

The physical asset registry (tangible assets) lists all facility assets. The asset register must
be maintained in the terminal's CMMS (Computerized Maintenance Management System)
utilizing Lubuk Palm Oils Company’s ABS standard. In this structure, systems, assets, and
components have parent-child relationships. Standard Asset Breakdown Structure (ABS) for
Lubuk Palm Oil Company.

The minimum requirements applied during asset registering are shown below:

a. The asset register should represent a breakdown of the physical assets on the
facility (Asset Breakdown Structure - ABS) at least to the level of individual
maintainable units, following the explanation given in the Lubuk Palm Oil
Company ABS standard
b. Each physical piece of equipment must be identified uniquely.
c. Each physical piece of equipment must be linked to a historical maintenance
report register.
d. HSSE critical equipment must be identified
e. Assets must be classified into several main-asset types for historical analysis
purposes and cost analyses.
f. Per asset the status of the asset must be identified (decommissioned, in-service,
in maintenance/repair, out-of-service, etc.).
g. l. Per asset, a typical set of (main) specifications should be kept up-to-date.

2.4 Compliance Register

The compliance register function can be held with the CMMS tool of each terminal. The
relations between laws, their articles, specific rules, regulations, and guidelines are clear,
easy to identify, and auditable. All the actions to be executed in order to be compliant shall
have a response within the department.

3 Asset Compliance Gap Analysis

As part of Lubuk Palm Oil Company’s Asset Integrity methodology, all facilities must
analyse any asset-level compliance gaps. This chapter explains how to run a compliance
gap-analysis.

3.1 Compliance Register

• Check whether responsibility for maintaining the compliance register is properly

 assigned within the organization;

• Check whether the management other change process with regard to the compliance
register is in place and whether evidence of execution is available (was the system
audited).

• Check whether all applicable laws are present in the register (Palm Oil standards,
international, national, regional, local)

• Check the system in place to ensure the facility is made aware of and updated with
changes in laws/regulations.

3.2 Asset Register – discipline or department responsible

The asset register process is based on the ABS of the terminal which shall be created and
maintained according to the Lubuk Palm Oil Company ABS standard. The second step is
to check per asset, asset type, and/or discipline whether all applicable rules, regulations,
guidelines, and (company) standards are mentioned in the compliance register.

3.3 Tasks Register – demonstrability checklist.

The typical ‘gaps’ which could be identified are:

• Obligation(s) not (fully) covered by tasks defined;
• Execution of tasks not finalized (before the deadline);
• Results of execution of the task(s) are not (fully) traceable or demonstrable;
• Follow-up activities from execution are not (fully) assured or executed;
• Recurrence task(s) for repeating/recurring tasks are not properly scheduled, assigned
and assured.
• Incorrect asset registration process or assets missing in the ABS.

3.4 Mitigating action for all identified gaps

After a full gap analysis, gaps are outlined. Define mitigation actions per "gap" to close it
as quickly as possible. Every mitigating action should follow these rules.
• Proper and clear task specifications are available.
• Task is assigned to an owner who is responsible for timely execution.
• Every task has a deadline/timeline
• Identification of critical and non-critical resources needed in order to complete the
task (contractor support, certified entity to perform a specific action, especial
equipment required, etc.).
3.0 References
ISO 55000 – Asset Management (Overview, principles and terminology)
ISO 55001 – Asset Management (Management system requirements)
ISO 55002 – Asset Management (Guidelines for the application)
ISO 14224 – Petroleum, petrochemical and natural gas industries -- Collection and
exchange of reliability and maintenance data for equipment.