02 Asset Management Decision Making

With all the talk about big data and the IIoT, many are asking how can we use this in maintenance? The IIoT enables us to put sensors in any location where we might want to collect and analyze equipment condition and performance data. There are companies that offer predictive maintenance services, and some companies do this for themselves, in-house. Typically, it’s the larger companies that can afford this, but democratization has meant this has become available to a much broader market. But there are hurdles to taking advantage of this sort of continuous monitoring program, even for your most critical equipment. One, it’s expensive, whether you do it in-house or outsource. And two, there are data bottlenecks. Condition monitoring data comes is huge volumes and it’s all time-sensitive. Even if you can afford it, you need a data handling network with a lot of capacity. In this workshop, we’ll present a viable technical solution to the data bottleneck problem — based on a solution already proven in financial securities markets — that opens up these possibilities in the realm of plant continuous condition monitoring.

Asset Management Roadmaps aren’t always perfect. Often they are a work in progress. In this webcast participants will see the journey that EPCOR Water Services Inc. (EWSI) undertook when developing its Asset Management Roadmap/Framework, and learn that even with challenges along the way, the organization overall ended up with a greater understanding and acceptance of asset management.EWSI’s initial framework, developed in 2011, was closely aligned with BSI PAS 55 and later revised to reflect ISO 55000 standards. Participants will learn more about the organization’s first attempt at a typical management system development process that took place over the next 24 month period, and see how this initial approach was unsuccessful.With lessons learned, the organization revised its approach in 2013, looking at asset management related gaps with EWSI operations and used process improvement methodology to develop procedures and tools to resolve those gaps. One of the major gaps identified was lack of asset management plans. The next year, a pilot project focusing on the 10-Steps of asset management (SIMPLE) was completed.Participants will see how this pilot project demonstrated the start-to-finish development of an asset management plan, and the development and field testing of several standards, procedures and tools that would become part of EWSI’s asset management framework. This approach demonstrated the value of asset management, resulting in greater understanding and acceptance of asset management throughout EWSI.

Jeffboat is a company with a long history.  Originally named the Howard Steamboat Company, Jeffboat is America’s largest inland ship builder and has been manufacturing ships for over 100 years.  Jeffboat has built such famous ships as the Mississippi Queen, the General Jackson showboat and the Casino Aztar riverboat casino. Like most manufacturing firms, Jeffboat has an enormous amount of equipment stretched out over a shipyard that is over a mile in length that is needed to make its boats.  Also like many old-line manufacturing firms, Jeffboat has both equipment and employees who have been there for several decades. Overall, because of the size of the shipyard and age of the equipment, Jeffboat’s maintenance was used to working in reactive mode.  There was no CMMS software in place and equipment was put into numerous Excel spreadsheets.  In addition, it was often hit or miss whether the right parts were in the stores room and finding the right equipment often took maintenance technicians a significant amount of time.  There was no Scheduler/Planner and maintenance procedures were done informally and based on need at that particular moment.When implementing a maintenance management strategy, a critical component is the resistance to change. Whether it is the introduction of new software or a complete overhaul of the maintenance function, the process of change represents disruptive technology (Christenson, …). According to Christenson, most changes are really improvements on something old and the old paradigms can be used. However, there are changes that organizations need to make that disrupt the dominant paradigm, rather than sustaining it. These are disruptive technologies and make the old things less important or obsolete. The problem with these disruptive changes is that people are still applying the old paradigms to the new realities. They are trying, in a sense, to understand the car as nothing more than a carriage without horses.

Uptime describes the combination of activities that deliver fewer breakdowns, improved productive capacity, lower costs, and better environmental performance. The bestselling second edition of Uptime has been used as a textbook on maintenance management in several postsecondary institutions and by many companies as the model framework for their maintenance management programs.Following in the tradition of its bestselling predecessors, Uptime: Strategies for Excellence in Maintenance Management, Third Edition explains how to deal with increasingly complex technologies, such as mobile and cloud computing, to support maintenance departments and set the stage for compliance with international standards for asset management.This updated edition reflects a far broader and deeper wealth of experience and knowledge. In addition, it restructures its previous model of excellence slightly to align what must be done more closely with how to do it.The book provides a strategy for developing and executing improvement plans that work well with the new values prevalent in today's workforce. It also explains how you can use seemingly competing improvement tools to complement and enhance each other.This edition also highlights action you can take to compensate for the gradual loss of skills in the current workforce as "baby boomers" retire. This is the Text Book for Module 1 of the MMP Program.    It is available through PEMAC, contact pd@pemac.org for information on ordering.

In this presentation that was given as a keynote at MainTrain 2017, John Hardwick explains how the data captured while we are managing maintenance can be leveraged by the business to make critical high-level asset management decisions. The presentation makes very clear the distinction between "managing assets" and "asset management" and illustrates the interrelationships between them. 

Due largely to the release of ISO55000x:2014 family of standards, Asset Management is gaining worldwide acceptance as a valid business practice for asset-intensive organizations. The challenge that organizations now face is how to operationalize the principles and move it from “being understood in theory” to being “the way that we work”, to truly distill effective asset management practices and principles to the nooks and crannies of the organization. One key tenet of ISO55000x is the management of asset risk at all levels of asset interaction. On the other side, one area that has been struggling to understand asset management beyond maintenance management is the traditional Maintenance Department. This paper will capture the steps that Veolia North America is taking one of its Municipal Clients through to understand risk at the more granular levels and build risk resilience into its maintenance strategy.Yet for the average Maintenance Manager, the challenge of interpreting asset risk for the organization is still uncharted waters. There are several ways in which the traditional Maintenance Manager can understand the wide breadth of risks facing the asset, determine appropriate responses and communicate them to the appropriate stakeholders. In fact, one or more of these may already be in place in the organization but may not be seen as building risk resilience. This presentation will explore one methodology used by Veolia to develop an asset-centric, risk-based Maintenance Strategy at the City of Winnipeg’s, Waste Water Treatment Plants using a Maintenance Management Maturity Assessment.The City of Winnipeg’s Waste Water Department is at a very interesting juncture in its history, in that there are several major capital upgrades being undertaken, whilst the plants continue to run. The goal of the Maintenance Strategy is therefore two-fold. To maintain the existing levels of service at least whole life cost with risk balanced against the cost of meeting objectives, whilst ensuring that there is a plan to maximise maintenance for the future asset base to realise the benefit of the investment over the whole life of the assets. As a result, in 2016, in collaboration with its selected O&M improvement partner, Veolia North America, the City of Winnipeg’s Waste Water Treatment Plants, went on a path of discovery. Two significant tools of investigation were employed: 1. An Asset Management Maturity Assessment was conducted and 2. The City participated in the National Waste Water Benchmarking Initiative (NWWBI) Maintenance Task Force Survey implemented by AECOM. The Asset Management Maturity Assessment examined 8 fundamental areas of Maintenance Management and outlined positions of excellence that the City hoped to achieve both at the 1-year and 3-year mark from the date of assessment with 2017 being Year 1. The NWWBI Maintenance Task Force Survey examined 42 granular yet, over-lapping areas of Maintenance Management, with 18 of them reporting significant gaps for the City’s Waste Water Treatment Plants. The results of the two analyses were combined into eight (8) key Objectives and the underlying activities required to achieving them over the next three (3) years. These eight (8) Objectives are: 1. Implementation of Asset Condition Assessment Plan (ACAP) 2. Inventory Management Optimization Plan (IMOP) 3. Work Organization Improvement Plan (WOIP) 4. Implementation of Maintenance Quality Strategy (MQS) 5. Financial Capability Improvement Plan (FCIP) 6. Asset Registry Improvement Plan (ARIP) 7. Implementation of Document Management (DM) 8. Revision and Implementation of Asset Criticality Model (ACM)This presentation will examine the detailed plans for each objective, the inter-connectivity and alignment of the Objectives, the Road Map for the next 3 years, the processes for monitoring and continual improvement and the benefits of implementing this approach. Presented at MainTrain 2017 

Application of Lean Six Sigma methodology in the optimization of maintenance execution by using data and facts.    As always, equipment maintainability plays an important role in uptime. Besides the reduction of failure rates, the quick recovery from those failures or the successful execution of scheduled activities makes a considerable difference in availability indicators. The application of Lean tools and Six Sigma analysis contributes to the improvement of maintenance execution by applying the 5 steps of Lean Six Sigma methodology (Define, Measure, Analyze, Implement and Control) and using the tools associated with them. This presentation will discuss Lean Six Sigma theory, basic principles of the methodology and case studies showing the use of tools. Case 1 will illustrate the application of Lean Six Sigma in scheduled preventive maintenance for slurry pumps operating in the oil sands industry. Case 2 will examine how the use of Six Sigma analysis reduced the corrosion rate of tubes in a bank of 12 heat exchangers shell and tube type, which heat diluted bitumen upstream of a distillation tower. Both cases emphasize the importance of using data and facts to make decisions, including front end personnel, and the sustainment of implemented solutions. Presented at MainTrain 2017 

This presentation covers the journey at ENMAX Generation of establishing foundations for Asset Management Plans and Lifecycle Asset Management Practices incorporating into the Capital Planning Portfolio Optimization and Budgeting Process. One of the challenges that we are facing today is in bridging the results from  many technology sources occurring at different time continuum into actionable information that can be consistently used across the fleet. This initiative is driving our engineers and consultants to devise a Health Index (HI) for critical assets that can be consistently used across the fleet for similar assets for the prioritization of capital projects.Annual spending on new projects, major maintenance, and sustaining capital require careful consideration, which has led to an increased scrutiny at ENMAX Generation. A data driven and financial model-based decision-making process for Capital Planning and Portfolio Optimization can be significantly improved using asset analytics to provide meaningful insights.The implementation of this involved review of existing business process including current and future state mapping, gap analyses, alignment with Project Management Office (PMO) Stage Gate Process and with Authorization for Expenditure (AFE). It also included a redesign of value measures and modeling to appropriately value projects/investment opportunities. We developed preliminary Health Index based on asset condition, operating age, probability of failure curves, replacement costs/parameters, and consequence of failure and risk levels. This journey has utilized practices by ISO 55000 for data-driven decision making and Value Measures and Value Frameworks in the Capital Planning and Budgeting Process. The results are probabilistic “optimal” replacement dates. We use Reliability Centered Maintenance methodology to manage our plant physical assets. One of the challenges faced today is in integrating technology sources, which is driving our engineers and consultants to devise a Health Index (HI) for critical assets, starting with the high-value assets.In conclusion, a key element of effective data and model-based decision making in Capital Investment and Management Planning relies heavily on predictive asset analytics. For asset analytics to effectively work, we require a lot of meaningful data to populate newly enhanced Capital Budgeting Software (C55). These are used today in C55 to compute the optimal replacement dates.Presented at MainTrain 2017 

As I spend more and more time in and around maintenance, reliability and asset management professionals, and though my own experiences as both an end user and now a contractor, it has become more and more clear that there is a definitive gap in most maintenance and reliability plans....the electrical system. This is not to say that there is not maintenance being done, or that people are not recognizing that their electrical system is critical. But do you understand what you are doing? Do you understand why? Is what is being done correct? Is the budget that is set aside for electrical adequate or too much? How do you know? What are the best practices and where do you start? As discussed this is not a technical presentation but rather a look at a basic electrical system and where an end user can start in regards to assuring themselves that they are doing the right things. There are some new technologies that are in the market place that can assist in determining if there is a potential problem with parts of your system...this presentation is not about those. Alternatively it is about "the basics", learning to walk before you can run: Looking at the system as a whole and learning where most trouble areas are; Assisting end-users in looking at past test results and planning next steps; Determining what needs to be done based on predictive tests such as transformer oil samples or IR scans, and what can be pushed into next year’s budget; What cannot be skipped because, if it is, it may not only cause catastrophic plant failures but potential fatalities. In conclusion what this presentation will focus on is assisting Maintenance Management professionals to treat their electrical assets with the same care that they keep their mechanical assets. It is not overly technical and you do not have to be an electrical professional to understand or benefit.Presented at MainTrain 2017 

Poor scope definition is the leading cause of capital project cost and schedule overruns, and small projects are no exception. Small capital projects with limited complexity represent up to 70% of the projects in an organization’s capital program, yet minimal emphasis has historically been placed on adopting front end planning and scope definition best practices. For over 20 years, organizations around the world have utilized the Project Definition Rating Index (PDRI) methodology to improve scope definition in capital projects. It is the most successful open industry standard available and proven to deliver increased cost and schedule certainty, with over $96 billion in projects benchmarked by the Construction Industry Institute (CII). Over the past two years, CII has published two new PDRI templates to help organizations improve scope definition in small industrial and infrastructure projects.This presentation will introduce the PDRI methodology and explain how it is being used in small projects to successfully:- ​Improve cost and schedule certainty​- Increase team alignment​- Identify gaps and provide teams with action items- Provide better transparency on risks