2.01 Capital Investment Decision-Making

This presentation will provide a detailed look at how Manitoba Hydro builds and applies whole-life cost models for the purpose of projecting performance, cost, and risk for an asset class. The application of predictive analytics, through the use of these models, will be discussed as it relates to a single asset class, to mature Manitoba Hydro’s asset management strategy.

The City of Winnipeg faced challenges with the condition of their Return Activated Sludge (RAS) piping within the North End Sewage Treatment Plant. Non-destructive and destructive condition assessment techniques were used to determine that the critical process piping was life expired, and required replacement or rehabilitation to maintain process level of service until the plant is upgraded. Replacement of a RAS piping system is akin to major heart surgery on a sewage treatment plant. To manage the process risk, in situ structural renewal using an engineered Carbon Fibre Reinforced Polymer (CFRP) external wrap system to encapsulate the original carbon steel piping was chosen. Selection of the rehabilitation method reduced the schedule by two years compared to the replacement option and minimized operational risk, as process outages were reduced to a few short-term events. Offline testing of mock-ups and emphasis on environmental and quality control further managed the risks associated with CFRP installation. The project faced unique challenges due to the complex configuration of the RAS piping, which was located inside a congested plant gallery with surrounding equipment, piping, and electrical services in continuous operation. To effectively convey information during planning, design, tender, and construction, a digital 3D model was developed using laser scanning to capture the detailed configuration of the piping and surrounding physical constraints. The 3D model was embedded with data to define the rehabilitation scope, locations of existing pipe leaks requiring immediate repair, rework of pipe supports to accommodate the CFRP installation, and other aspects relevant to the work. This model was a highly effective tool used for collaborative review by all project team members throughout design and construction, leading to successful completion of the RAS piping rehabilitation.

Cameco Corp. has recently deployed approximately 1,500 wireless asset condition monitoring sensors across four of its operations. This presentation will explore all aspects of this project, from initial identification of business pain, all the way through to deployment and management of the system. Condition-based monitoring of rotating assets typically involves a route that is executed at a fixed interval to collect asset condition data. This data can include vibration, temperature, acoustic emissions, and others. This data is then downloaded into software and analyzed for faults and trends. This method has many shortcomings that can be solved with remote sensing technology. This presentation will take you through Cameco’s journey of identifying the limitations of traditional data collection and why an alternative was investigated. Some of the key topics will include problems and inefficiencies with the current system, methodology used to determine which sensor company to partner with, potential cost savings and benefits, deployment strategy and execution, and some screen captures of actual asset detections. Finally, we will conclude with lessons learned and benefits realized from deploying a sensor solution.

As maintainers, we know there is a lot of value in what we do. Without our work, plant, and equipment will soon stop and our companies will then go out of business. What we do impacts safety, health, revenues, costs, and company reputation. A dirty little truth about maintenance is that it is only we who work in it, that really know the value of what we do – or do we? We do know our value in qualitative terms, but can we quantify it? Most maintenance can be improved and we know it. We can do things more efficiently, and we can keep things running more reliably. We often know how to do that, but when we want to make those improvements there is no money for them. Why? Most business people know very little about what we do and how it impacts their business. They see maintenance as a repair shop. We fix what breaks. And they know little, or nothing, more. They may know that maintenance represents a significant cost, and they may even know that they can’t get away with cutting it too much. But they do not know the full value of what maintenance can deliver, nor what it takes to deliver it. If you want to make improvements you need a decision-maker, someone with executive-level authority, to back you up. To get that, you will need to explain what value you can deliver, and in terms they can understand. You will need to show them the savings that are possible from doing things more efficiently, and the added revenues that can arise from investment in defining the right work. You will also need to show them how their support is needed to bring operators and the supply chain into the team with you to make those changes happen so that benefits are fully realized. Quantifying value and being simple in how you say it matters.

Traditional asset management historically prioritized infrastructure over the natural environment. This approach has led to many conflicts between the natural and built environment (e.g., flooding, pipeline exposures, property loss, etc.). As we respond to these conflicts and experience new weather patterns related to climate change, the design approaches of the past are transitioning to techniques that re-frame water and natural systems as valuable assets. Natural systems provide value to communities through the provision of ecosystem services. The realm of ecosystem services is diverse and includes flood mitigation, mental well-being, wildlife habitat, and pollution control. Understanding these services and systems allows proponents to manage and maximize the value of their natural assets. This presentation will describe two types of approach for managing natural systems as assets. The natural system type used for this discussion will be surface water drainage systems (creeks, channels, rivers, or ditches). The first approach to management is using proactive planning around natural systems to prevent conflicts between watercourses and infrastructure from occurring in the future. The second approach is used to manage existing conflicts in and around watercourses when built infrastructure cannot be relocated according to the recommended planning measures. In this case, existing conflicts can be resolved through applying knowledge of natural system function and design. Examples will be used to explore how these approaches benefit communities and project proponents alike.

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 

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!

We know that reliability has value to your business, but many of us with technical backgrounds struggle to present a good business case to decision-makers. We are very often held back by budget constraints and we are not in a position to make decisions involving financial risk-taking. Most of us don't have a business background, nor do we speak "finance". It is a whole different language than maintenance and reliability, yet we all want the same things for our business. This presentation will give you some ideas on what you will need to determine in order to show what reliability is worth, and how to present that to decision-makers.

Ian Flood, Asset Manager at Northwest Territories Power Corporation, is a recent graduate from PEMAC's Asset Management Professional program. His AMP Course 6 Capstone Project was nominated by his instructor, and selected as this year's AMP Capstone Award winning project. The AMP Capstone Award encourages and recognizes excellence in the Asset Management Professional (AMP) program final project, the Capstone. During this presentation, Ian will share more insights into himself, his organization, his award winning AMP capstone presentation and how his learnings in the AMP program have impacted his organization.