6.00 Risk and Review General

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.

Asset management maximizes the value of physical assets while balancing cost, quality (levels of service), and risk. It is a complex and interdisciplinary task that requires strong leadership, multidisciplinary knowledge, and effective use of technology and resources. Asset management is especially challenging for public organizations that own a wide range of assets, such as roads, water, sanitary, stormwater infrastructure, facilities, parks, public art, information technology, and fleet. Furthermore, asset management is not merely a technical or a leadership role but a marrying of the whole organization. Hence, asset managers must have a holistic understanding of how their assets support the organization’s long-term goals and how to engage with various stakeholders. The presentation will explore skills, techniques and methodologies to help asset managers achieve better outcomes and meet their objectives. The approaches range from traditional methods to the latest techniques in industry and elsewhere. These include engineering, finance, project management, maintenance management, supply chain, process improvement, public engagement, design thinking, and journalism.

You are an asset owner. What confidence should you have that those operating and maintaining your assets are capable and “doing a good job”? With organizations more and more commonly outsourcing their maintenance and operations, and even the management of assets, there must be assurance activities in place, assurance to provide confidence that third parties will deliver what is asked and that their approach is sustainable in the long term. A three-lines-of-assurance approach provides asset owners, operators, and maintainers with layers of audit to assess the effectiveness of risk and control functions. The third line assessment is aligned to the audit and risk function and is for executive or board committees. This presentation will explore case studies where an organization may have benefited or has benefited from third line assurance. The three lines of assurance can be characterized as follows: First Line—how operational managers own and manage their asset risk and maintain effective internal controls; Second Line—how management establishes compliance functions that facilitate and monitor operational practices; and Third Line—expected to provide executive management, audit and risk committees, and governing boards with a means of addressing their responsibilities and accountabilities for meeting their corporate objectives or regulatory requirements. The third line is expected to provide high-level independent assurance on organizational effectiveness. Assurance is a fundamental of asset management; it should provide confidence that assets will fulfil their required purpose. It is hypothesized that, as an industry, we would do well to focus on assurance (giving and receiving) and, more importantly, capability building. Public asset owners in particular should be investing in their organizational capability, and industry should be focused on providing enduring uplift in knowledge and management system improvement. Asset owners cannot separate themselves from their assets and the realization of organizational outcomes. Independent review and advice at the third line should provide the assurance required to give confidence that those operating and maintaining your assets are capable and are “doing a good job.”

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.

We are in unprecedented times. Covid-19 wreaked havoc on supply chains; decreased production during times of increased demand. Labor shortages, chip shortages, long lead items turning into “maybe next year, if you’re lucky” items. The Russia Ukraine war added further stress to supply chains through sanctions, port closures, fuel shortages and much more. What once was reliable is now unreliable. So how can companies overcome an unreliable supply chain to maintain their reliability? There are several ways to mitigate unreliability; scenario planning, supplier management, and technology. There is no one size fits all and what may work for one company will not necessarily work for another. Scenario planning involves reviewing every potential situation that could occur, then working through to see how the company would be impacted. Ultimately this results in mitigation plans for each scenario. These can then be reviewed and implemented. Proper Supplier Management includes ensuring all suppliers have their scorecards reviewed on a regular basis. Their information updated and kept current. It can also include reviewing which suppliers can become substitutes for others in the event one is not able to provide the required product in time. Technology is important as it links all the information together. Algorithms can be created to let management know that certain parts are low, equipment is wearing out sooner, it also collects information on suppliers for the scorecards. Overall technology is the glue that binds and provides real time information updates. This presentation will review how to best use technology to help mitigate reliability and supply chain issues.

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.

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.

An Asset Health Index or AHI refers to analysis performed using various asset data to determine the state or condition of the asset. AHI can be used to better assess asset condition, used and useful life, progression toward potential failure, and failure probability. Further, using AHI can also enable the development of optimized maintenance and replacement strategies for assets using a set of objective criteria to assess the true health of the asset. However, entities vary widely in whether they develop Asset Health Indexes (AHIs) for their key assets. For those that do, there are marked differences in the level of rigour and sophistication employed in developing and applying AHIs for effective asset management decision-making. AHI calculations involve identifying and collecting data which may include a review of core asset attributes such as manufacturer, inspection data including field observations, destructive and/or non-destructive test data, maintenance data including historical records, operational records, and asset failure/refurbishment data. In other words, some are core inventory data, some work records, and some inspections or tests. This presentation will go through how to make the best use of asset SMEs and how you can start to develop useful AHIs from what you already know/have. Technically, the process begins with identifying the most critical assets and determining which can best benefit from AHI formulation development. The next steps are used to develop proposed condition factors (CF) and weighting factors (WF) that provide insight into the condition of the assets. Finally, CFs and WFs are used to develop a mathematical algorithm or formulas for the Health Index. We will also discuss how AHI can be used to develop asset management and maintenance strategies – the whole point of the data and analysis in the first place.

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.