2.00 Asset Management Decision Making General

Asset management focuses on adding value as a form of an investment in the physical preservation of the asset, financial stewardship, and data analytics. We will share experiences and best practices in evidence-based asset management that strengthens smart outcomes and strategies. Gain insights and knowledge of successful strategies to ascertain owner support

Asset Managers understand that the best way to achieve success with their strategy is to have executive sponsor support. Unfortunately, many Asset Managers are frustrated because they cannot get senior leadership to pay attention to the importance of the company's assets. Asset management goals and objectives should align with corporate strategies, but often, there is a disconnect. Some of the gaps are: •    Corporate strategy vs. asset management strategy; do you have a line of sight?•    What Asset Managers say vs. what executives hear; are you speaking the same language? •    Operations production targets vs. asset lifecycle value; do these conflict?•    Executive education; can you help senior leaders who don't know the difference between their assets and their asses?•    Executive decisions; are you in the loop on this secret process? •    Corporate performance vs. asset management measures; do your KPIs align?•    Managing up; are you providing executives solutions or problems?Understanding what executives are thinking and how they make decisions is crucial to an Asset Manager's success. Ron Bettin has spent many years guiding operational and project success by bridging the gap between executives and asset management. This presentation explores why executives often don't appear to care about critical assets and what Asset Managers can do about it 

Within our toolbox of best practices, the concept of Operational Readiness (OR) has been discussed, strategized, budgeted, and engaged, to prepare the asset(s) in transition from OEM to start-up, whether for the construction of a single asset such as a mine haul truck, or unique piece of manufacturing equipment, or for multiple assets within an infrastructure such as a hospital, or rail transit line to create the smoothest, "turn key" process for the newly acquired asset, prior to deployment into operations.Through the many global industries, we have been blessed with a very holistic view of what Operational Readiness should look like. However, the process can be seen as a high level strategy, which fails to incorporate the depth and breadth required to ensure all steps of the plan will engage tactics which align with corporate vision and mission, supporting critical aspects of readiness; the tracking platform, communications, and follow up methods used to ensure we engage stakeholders as "partners" in our journey, rather than captives in a process to ensure the asset is truly "Operationally Ready", before we sign off with the asset owners.As a result, tactics used are many time absence of an accurate tracking process to ensure the highest level of QA/QC. What better time to achieve this accuracy then at the inception of the new asset, just like we do when we welcome a new baby into our family. But can we honestly say we plan everything for our new addition? Definitely not.  We can agree, that we are not all aligned in how or what we will feed our child when they turn 2 years old, rather we commit to the short term plan and move forward.Why? Simply put, it takes a lot of effort to "sweat the small stuff", however the tactics used for Operational Readiness, it is critical we "sweat the small stuff" as we build a platform that will support the process, while focusing on reduction of the 7 + 1 types of waste, and by making the process simple and attractive to the ones responsible for getting the process steps completed in our journey.An OR report study from Deloitte (2012) revealed that if a company can achieve OR process effectively, they would have an opportunity to reduce the risk of loosing 30% of their capital value. In addition, the severe detrimental impact on Capex and initial operational capacity, ongoing operations and maintenance costs over an asset’s lifecycle are typically 1 – 2% higher, year-on-year and for the entire life of the asset, where operational readiness was not sufficiently achieved at the outset.  And then there is value add for safety and employee morale.Everyone’s best intentions are traditionally met with the reality of how many small, yet critical alignment steps there are to truly set up the asset to be resilient and sustainable within the lifecycle and within the desired Asset Management Landscape within your organization.Chaos usually rears its ugly head at a period after the asset has been commissioned and signed off with the asset owner. Normally the front end of design for reliability, need vs. want, master maintenance plans, parts and operations, maintenance and training strategies are set well.  However, are they truly measured by the organization, in a way that supports the quality of work to manage QA/QC performance and excellence of each process step?  Many stakeholders will have touch points in the process; either one time, or many times well past the commissioning stage, right to the end of asset life; retire, restore or renewal process, which is all part of the OR.  In this presentation for the Operational Readiness (OR) Global Approach to Asset Management Landscape & Best Practices, the information will address how Agnico Eagle Mining Ltd., has taken the opportunity within the Nunavut Division,  Asset Management group to enhance the tracking performance and following up with every stakeholder to ensure the actual work is being performed, at the right time, for the right reasons and the completion of each of the hundreds of secondary and tertiary steps are properly aligning with the timing to bring the asset into operational state.The presentation will discuss the practice and "out of the box" applications readily available using the Microsoft 365 suite of programs, such as SharePoint and the supporting applications available, without engaging in complex processes, spreadsheets or software tracking, workflow, and communication platforms.  It is challenging to keep everything tracked and packaged in one system available to everyone when having to apply multiple CMMS, EAM, ERP, or other 3rd party application systems help to support the management of assets. 

The energy landscape is shifting with the rise in electrification of transit and the rise of renewable energy shaping a new energy era that is changing the way we think about infrastructure decision making. This presentation will articulate how electrification of transit and an increase in renewables will impact medium and long-term infrastructure planning by providing examples and a practical perspective (case study) to demonstrate how Asset Management decision-making played a vital role in a utility company’s response to this change. This utility company is a key contributor to several electrification initiatives. They recognized the challenge associated with these initiatives and the overall success of the first implementation phase with minimal disruption to current operations. They are also preparing for electrification of the government transit’s first all-electric bus garage to support future procurements of battery-electric buses (eBuses) and will be working on the design and implementation of charging systems infrastructure across the city(?). Over the past 20 years, more than 50 renewable energy systems have been installed on City buildings and properties. In 2020, the city developed recommendations for the utility to achieve greater outcomes for energy efficiency, demand management, and renewable energy. The city also mandated installation of renewable energy systems on all buildings, where feasible, by 2020. The rate of development in electrification and technology in the transit sector is faster than implementation of major infrastructure developments; changes in demand patterns impact everything from the transmission and distribution networks to generation, dispatch and peak-load system capacity design; so it is not possible to “wait and see” before committing to infrastructure investment decisions. This presentation will cover how the utility is dealing with these changes by ensuring an appropriate long-term decision-making framework is in place to assure business continuity and reduce the impact on climate because it poses a particular risk for asset owners and operators. AMCL will present best practices for long-term decision-making and how the impact of change should be taken into account during the development of long-term infrastructure planning processes, in the context of a public utility.

Business improvements require changes. In reliability and maintenance, some of the change factors are within our control, but many are not. If we stick with small changes, they can often happen but they often fail to achieve their full potential. Why? The short answer is that there are many factors we can’t control and usually we have limited influence. Some of those are related to people and are dealt with by “change management”, but others are related to how our businesses are structured and organized. If we want to make big changes we need to get past that! This presentation will give you something to think about and share with your senior management. If they want miracles from you, then they will need to make it possible!

Formal asset management has a relevancy problem when it comes to practical application in operations-heavy industrial sectors. It is a major reason the uptake of holistic and strategic formal asset management has been so slow in North America. As asset management practitioners we are failing to offer and deliver AM in a way that is aligned to and integrated with the incumbent operational management system. To have utility and add value we must see the challenges from the senior operational leaders' perspective and offer AM in a practical way that is seen as the solution to their problems. Join Paul Daoust as he threads the needle and binds great asset management into great operational management.

This paper describes strategic Asset Management at an Industry level. The illustrative case study reviews the Ontario Nuclear fleet of stations', life cycle planning and then applying simple risk analysis. The situation is illustrative, not to be taken as accurate in any aspect (eg costs, schedule etc). The purpose of this paper is to illustrate a practical example of how Asset Management can be applied at a strategic level, to support strategic planning over a multi-billion dollar, multi-decade program. The situation described is very loosely based on the OPG nuclear refurbishment program, but cannot be directly connected to it since all the information is proprietary and the numbers used are hugely different. The paper outline is expected to follow: • Background • Fleet Asset planning • Project Estimate process • Risk estimate process and review . • Conclusions The above is at a "bird's eye" view, but with enough details to understand the case study and how it pertains to a broader scope of applications. Learning: 1. Asset Management is a strong strategic tool when applied at Facility level. 2. Estimates, though rough at an early stage, can provide managerial information that is adequate for decision making. 3. Risk Management can be simple, but provides huge returns for management decision making.

ESG targets and reporting are becoming increasingly important. Investors and governments around the world are pushing for transparency and ever more rigorous reporting on ESG indicators. It is likely that financial regulators in North America will make ESG reporting mandatory within the next 2 years.  Many components of ESG frameworks affect asset management, and conversely good asset management can help improve an organization’s ESG scores. Think of climate change, pollution, health & safety, risk management, water use and GHG emissions to name a few.  It is therefore crucial for asset managers to understand the current frenzy around ESG reporting. Yet the ESG ecosystem can be quite baffling: there is no single definition of what ESG stands for, or what is “in” or “out”, or what reporting standard to follow.This presentation will shed some light on who does what in the ESG ecosystem, what standards and reporting options are available, and how all this will increasingly affect the way organizations make strategic decisions. Asset management has a big role to play in this context. Many asset managers have been confronted with complex, multi-stakeholder decision-making frameworks for years and are quite adept at aligning various departments to a common set of objectives. The definition of “value” in asset management often already contains many metrics that are now part of ESG reporting. We will explore how robust value frameworks can help organizations reach better decisions and improve their ESG scores – with the guidance of their asset management team!

In operating large or multisite portfolios, there are significant resource constraints which result in limited or a misallocated application of financial and time investment; this in turn, provides either unanticipated or high risk results. I will guide session attendees through the process of developing a decision making model for initiative prioritization - whether it is capital works projects, maintenance activities, continuous improvement initiatives, or potentially the day to day routines already established. We will begin with the journey of defining operational context in the view of the customer, the levels of service and focus areas for maintenance teams and capital teams. It becomes challenging with fiscal constraints, and the charge to implement continuous improvement often doesn’t result in value; how do we prevent ourselves from reacting to the latest trend or quick solution? How do we identify everything that needs to happen vs everything we want to happen? Understanding where you are is key in being able to define how you get to where you want to be. However, prioritizing the purpose of what you do is paramount to focus efforts on activities which add value to not only the organization but the customer, and to form a strong culture of positive support for our people. The decision making model you use and the role as a facilitator amongst the varying stakeholders and opinions is key to achieving success.

There is little doubt that managing during the COVID-19 pandemic, and making plans for re-entry to the workplace, has been challenging for building professionals. The epidemic triggered a rapid shift on establishing new work protocols, the handling of facility maintenance routines, dealing with greater sanitization requirements, emergency measures, and new work behaviours. As vaccinations continue to be administered, businesses have had to develop strategies for safe and enhanced re-entry workplace procedures. During the session, a scan of the past year’s trauma and experiences will be shared from a building professional’s perspective. These experiences have strengthened and accelerated new opportunities as we rebuild an optimal workplace. The session will look at different workplace options in the new paradigm.