5.03 Organizational Structure

Recently there was a lot of discussion on various forums around the term ‘Human Asset’. It was prompted by a paper/presentation made by Dr. Monique Beedles in Australia where she questioned the term and the appropriateness of using it based on the definition of an asset in ISO 55000 – ‘an item, thing, or entity that has value or potential value to the organisation (ISO, 2014)’.There were questions posed on the various forums as to the use of ‘thing’ to describe humans – it’s legal meaning, it’s cultural implications and though most posting felt the term was appropriate, there was definitely a difference of opinion. What wasn’t brought out in most of the discussions was the intent or suitability of the decision to word the definition that way. No-one disagreed with the idea that a human ‘has value or potential value to the organization’ and so rather than argue about the term, I’d like to explore how we could apply the tools and lifecycle approach we use for physical assets, to humans. Let’s walk through the lifecycles and see if we can find how it might apply to humans.Concept Design Acquire Operations and Maintenance Decommission So as I said I won’t address the term ‘human asset’ but hopefully you can see that taking the same approach to ensure that the ‘value or potential value to the organization’ is certainly a good alternative.

In service providing organizations, coordinating resources to minimize redundancy, manage cost to serve and combat employee disengagement becomes a differentiator. For larger organizations this can further support streamlined captial and operational investments such as facilities, speciality tooling and training. Within the maintenance industry we project that 35% of our trades persons time is actually on the tools (module 6), this is an alarming statistic that resonates with many professionals. Organizing resources intentionally, creating the customer experience while managing these investments can be achieved in a network strategy.  The network organizes resources between generalists and specialists and capitalizes on placing services that require specialization in labour markets that have depth. Organizing is only part of the equation,  having a comprehensive & fluid S&OP process and a mechanism (ex: a control tower) to bring real time visibility into capacity increases productivity and reduces overall cost to serve. At my organization, we have done just that. Beginning in 2019, we designed a hub and spoke model that would support a long term vision of creating capacity through strategic efficiency. This transformational pivot required considerable foresight, change management and Since the MRO articlehttps://www.mromagazine.com/digital-archives/september-2020/ (page 12) in 2020,  the focus on capturing internal & external demand signals to support the maturity of our capacity and capability (S&OP) planning,  we have been able to grow niche market shares by 300% in under 2 years. THe planning coupled with the increased/real time visbility through our contol tower has supported sustainable growth in an ever shifting economic climate.     

MainTrain 2021 Panel DiscussionModerator: Susan LubellAuthor of "Root Cause Analysis Made Simple", Susan specializes in asset management and reliability strategy, cost effective lean maintenance programs and operational excellence. She brings over 25 years of practical experience to drive asset management, maintenance and operational business improvement opportunities. Susan currently serves as National President for PEMAC Asset Management Association of Canada, Chair of the World Partners in Asset Management (WPiAM), and teaches for both the Maintenance Management Professional (MMP) and Certified Asset Management Professional (CAMP) programs. Panelists:John Hardwick, Executive Director, Sydney, Roads and Martime Services NSWRepresenting: AMC - Asset Management Council, AustraliaWith extensive Executive Management and Board experience and a background over the past 30 years in asset management within the electricity and transport industries. A passionate leader of organisational improvement in asset and operational risk management, and has implemented world class asset management strategies implementing effective asset management strategies and systems to manage risk and provide value for customers and communities.John is co-author of Living Asset Management.John has a desire to make a difference and explore new ways of solving wicked problems. John is the past Chair of multiple not for profit organisations the World Partners in Asset Management, Global Forum on Maintenance and Asset Management and the Asset Management Council.João Lafraia, President, Fábrica Carioca de Catalisadores S.A.Representing:  ABRAMAN - Associação Brasileira de Manutenção e Gestão de Ativos, BrazilOÃO RICARDO B. LAFRAIA is MSc by the Cranfi eld Institute of Techonology, in England. MBA by the Pontificia Catholic University/State of Paraná. He taught in the graduation and post graduation about Quality Assurance, Reliability and Organization in the Federal University of Paraná and FGV Rio. He is author and co-author of the books of Reliability Handbook, Mantenability and Availability and Strategic Management and Reliability, Creating the Habit of the Excellence. Author of several articles and lectures about Excellence in Management of Reliability and Health, Environment and Security.Lafraia has acted as General-Manager in 5 Refineries around Brazil. He also headed the Operational Excellence Department for all refineries at Petrobras Headquarters in Rio de Janeiro. Executive Director for the FCCSA Chemical Company. He served as board member for 4 chemical companies. At present moment, he has the position of General-Manager in the Exploration and Production Santos Basin Business Unit and Chairman of the Deliberative Council of ABRAMAN.Johannes Coetzee, Managing Director, Machine Assessment & Reliability Technology (Martech)Representing:  SAAMA - The Southern African Asset Management Association, South AfricaJohannes Coetzee is the MD of Martec and Chairman of the Global Forum on Maintenance and Asset Management (GFMAM), the umbrella body for professional associations in the field of maintenance and assets management across the world. He is the past-president of the Southern African Asset Management Association (SAAMA) and also serves on the Advisory Board of the Industrial Engineering Department at the University of Pretoria, South Africa. Johannes is an Industrial Engineer, holds an MBA and has been in the field of asset management for more than two decades. Naoki Takesue, Mitsubishi Research Institute Inc.Representing:  JAAM - Japan Association of Asset Management, JapanMr. Naoki Takesue is a Professional Engineer and has more than 30 years experience in the field of construction management and asset management for public and private sectors.  In MRI, he is engaged in research and consulting works for developing government policies of infrastructure management.  Also, as a director of JAAM, he is  actively involved in the introduction of ISO55000s into Japan.  

This presentation will describe Nova Scotia Power Inc.’s (NSPI’s) Asset Management journey – comparing the progression for our Power Production division, with that current in play in support of our Transmission, Distribution and Delivery (T&D) division. NSPI has deployed a fully-integrated, technology-enabled Asset Management approach for its Power Production fleet of assets. The journey to undertake that development was staged, with key components of the asset management approach integrated in a step-wise fashion, each building up on the other. Carefully designed visuals were used to communicate and gain asset owner (plant management and field-level) support for the initiative, and resources from the organization migrated to the centralized asset management team over time, providing centralized, fleet-level support vs. plant-level support. Over approximately 8 years, the “Asset Management Office” team grew from 3 to 10, including dedicated operational technology resources, technical subject matter experts focused on generation assets and performance, and field level support resources. Major programs were deployed such as condition-based monitoring, predictive analytics and digital Operator rounds. There was room for trial-and-error, and continuous improvement with significant field engagement. A very bottom-up approach. In 2017, the Asset Management team’s mandate expanded to include NSPI’s T&D assets. The mandate included an organizational change, which gave the Enterprise Asset Management (TEAM) division (which includes Asset Management, but also Capital Management and Planning) elevated status via Sr. Director leadership. Some resources from the T&D division of the organization changed their reporting point to the AM team “en masse”. An EAM Integration Management position was created to have consistent leadership over the integration of the asset management approach across T&D, including integration into existing Asset Performance Management systems and framework, ensuring alignment with, and building on successful work completed for Power Production. The expectation for successful transition at a higher level, with minimal bumps along the way, was very different. A very top-down approach. Each approach has its highs (“…the best of times..”, and lows (“…the worst of times…”). But while different, there are common learnings and lessons that can be applied. Each approach can be effective – and in fact has been effective for NS Power. Perhaps you are starting small…. Or perhaps you are starting big… or somewhere in between. In any case, our Tale of Two Deployments will share with you NSPI’s experiences, and share of the benefits and challenges of each.Originally presented at MainTrain 2021 

In 2010, a privately owned tissue-converting facility in New Brunswick (Irving Tissue) considered itself a well-oiled machine, being able to product 10 million cases of product annually—a huge leap forward from where it started in 1990, with 200,000 cases. The site was piloting a PMO on one of 12 production lines when a vision was pitched to the site leadership team: implementing PMO’s activities and principles on each production line would allow the site to streamline its efforts and result in increased production, with a higher product quality and fewer injuries. This pitch aligned with several of the company’s core values and allowed the leadership team to see there was still substantially more gains to be made at the facility that didn’t necessarily require capital investment, but simply changes to work processes. While this plan didn’t come to fruition, it aligned the leadership team to make reliability a focus rather than just production. This alignment paved the way for several reliability-centred improvement initiatives at the site. The cornerstone achievement of this shift toward reliability was the implementation of “Reliability Windows.” This regular cleaning (two to three times weekly), inspection, and PM task-oriented activity shared between the operations and maintenance groups helped move asset care to a joint effort, rather than just being the responsibility of the maintenance department. This initiative has been a major contributor to the site being able to produce 15 million cases in 2020 (about a 50% increase from 2010—without any additional production lines). This has been a huge advancement in ROA.                Originally presented at MainTrain September 09, 2020   Webcast  presented November 24, 2020 

One of the main developments in ISO 55000 is the expansion of the meaning of "asset" to include assets that are not plant and equipment assets (e.g., human, knowledge, or reputation assets). This aspect seems to be understated somewhat in explaining what's new in ISO 55000. To better understand the expanded asset concept in ISO 55000, this presentation will explain the "three axes model of assets"; demonstrate its application by contrasting two cases (plant and equipment in a nuclear plant vs. human assets in a nuclear plant); and explore knowledge assets in a professional trade organization (e.g., PEMAC). We'll suggest how professional trade organizations (like PEMAC) might manage their knowledge assets, which actually include both content (knowledge) and trainers (human). The results are twofold: an enhanced awareness of non-traditional assets in ISO 55000 and a basic proposed plan for a knowledge-based professional organization to manage its assets in keeping with ISO 55000.

"Who’s on first. What's on second. And I don’t know's on third!" For some, these three simple sentences, which begin with questioning words but don't end with question marks, will appear puzzling. To others, this nostalgic phrase will trigger a grin as they're reminded of the famous 1938 radio play by Abbott and Costello. Regardless of your reaction, these sentences represent a strikingly large gap in asset management, maintenance management, project management, program management, and other domains that leave practitioners feeling confused and infuriated. Who is the real sponsor of the work? What, exactly, is the sponsor supposed to do? And, do we know if the sponsor is the same as the asset manager? Guidance surrounding the role of a sponsor is rather dismal and unstructured while the amount of literature on roles such as maintenance planners, schedulers, reliability professionals, and project managers is overwhelming. Why does such a vacuum exist? This session will provide a framework for the duties of a sponsor and guidance to asset and maintenance practitioners on recognizing a good sponsor or surviving a bad one. We'll demonstrate why the sponsor is not only important for success, but also essential; how the sponsor can best support asset management and maintenance management professionals through asset lifecycles; and the skills and behaviours sponsors should exhibit to ensure the "right" work is being sanctioned.

Ross Markowski was part of the final phases of construction of a gas plant that was experiencing a change of ownership. Ross used the Capstone Project and the myriad changes happening at his site as an opportunity to think through the possibilities of a new organizational design and leadership model to achieve site-wide engagement in proactive maintenance for the upcoming commissioning and operation of the plant. Ross’s presentation summarizes the pros and cons of the existing and proposed organizational structures and touches on some of the challenges of implementation.Whether you are in oil/gas, manufacturing, forestry or another industry, you will find the lessons learned through Ross Markowski’s Capstone Project applicable to most situations where changes are occurring, work still needs to planned and executed and people are your most important resource in getting the work done.

Based on real-world experience this invaluable guide and reference tells the whole story of maintenance planning from beginning to end in a concise and easy-to-follow manner. Written by well-known professionals this new edition focuses specifically on the preparatory tasks that lead to effective utilization and application of maintenance resources in the interest of the reliability essential to business objectives. It comprehensively examines the job preparation process from job scoping and planning, to determination of material requirements, estimation of labor requirements and job duration, coordination of all involved parties, and job scheduling. And it includes essential metrics for measuring performance of all contributing functions. It is a vital training document for planners, an educational document for those to whom planners are responsible, and a valuable guide for those who interface with the planning and scheduling function and are dependent upon the many contributions of planning and scheduling operational excellence.This is the text book for MMP Module 6.  It is available for purchase through PEMAC, by contacting; pd@pemac.org 

Effective maintenance plays a crucial role in today’s business. In order to manage costs, organizations attempt to get the most from their people and assets. Effective alignment between departments can dramatically improve asset reliability, reduce operation and maintenance costs and improve the effectiveness of the workforce.This presentation is intended to provide participants with the information and awareness they need to manage assets effectively. The need of cooperation between the operations and maintenance departments, as well as other departments such as supply chain will be discussed. Employees require more than high level principles; they must understand their role and how effective cooperation at all levels will provide value to the on-going operations, thereby allowing the business to remain profitable. Further, the presentation will examine the concept of Operational Excellence as the beginning of a transformation to a planned culture throughout the entire organization. Key to this topic is confirming who is in charge. Is the asset dictating how things should be done or are the people running it in charge?Asset management professionals often find themselves challenged by competing priorities in an effort to keep the system running. This session follows how maintenance tasks are initiated with work prioritization being a key element. Various roles will be discussed as well as the importance of scheduling and getting everyone on board with the schedule. Potential subtopics tailored to time restrictions: (1) Why do planned maintenance? (2) Cost of a break-in event, (3) Risk-based work selection, (4) Screening and approval of work, (5) Operators role in maintenance, (6) Operations, maintenance and supply chain departments’ role in scheduling, (7) Operations and maintenance coordination and roles, and (8) Managing the daily work list.  Presented at MainTrain 2017