An Asset Management Roadmap For Electricity Utilities ... - DNV Kema

Document numberAn Asset Management RoadmapFor Electricity UtilitiesIn The Middle East RegionDr Joseph Maria Wetzer, Principal Consultant Asset ManagementDNV KEMA Energy and Sustainability, The Netherlands

Contents• The aim of this presentation is to share best practices &lessons learned on Asset Management Roadmapping:- How to move frompresent to desired state- Emphasizing Middle Eastcharacteristics2

The Essence of Asset Management• Define business Values• Know you Risks• Manage your Risks• Continuously Improve= what needs to be safeguarded= threat to business value= decisions to control the threat= keep learning from the past3

Example of a Roadmap

Functional Roadmap• Functional Roadmap: Designing the SystemDefinegoalsDefineprocessOrganizeprocessImplementprocessDefineIT systemPurchaseIT system5

Functional Roadmap• Functional Roadmap: Designing the SystemDefinegoalsDefineprocessOrganizeprocessImplementprocessBusiness valuesStrategyPolicyObjectivesKPI’sAsset informationRisk managementDecisioneeringManage & control KPI’sMonitoring KPI’sStructureAuthoritiesResponsibilitiesIn/outsourcingStaff number &AM plansDocumentationInfo managementTools & facilitiesStaff development& AM targetscompetenceRequirements toorganization & IT system6

Functional Roadmap• Functional Roadmap: Designing the SystemAsset Information SystemDesigned to support the AM processBased on AM information modelCompatible with existing systems (GIS, ERM, …)Integrated with maintenance inspections & planningStandardized but flexibleEase of use for asset engineers & maintenance crewsTraining facilities (IT & technical)DefineIT systemPurchaseIT system7

Implementation Roadmap• Implementation Roadmap: Making it Work!AwarenessSense of urgencyDefinition goalsand approachCreating theconditionsRoadmap design forimplementationImplementation ofasset management• From field to board• Facts & fiction• Overall goals and gaps• Clear & smart goals for future situation• Approach in general terms• Pilot project(s)• Data structure and quality• Reference measurement• Detailed design of AM system• Implementation plan and schedule• AM software system• Develop and implement changes• Roll out continuous improvement• Training & competence development8

Middle East Characteristics• Next to the global trends…- From: vertically integrated, governmental, utilitiestowards: unbundling, regulation, price control- Dependence on (electrical) power, need for risk control- Many stakeholders, need for transparency• ...the Middle East region has specific characteristics:- Tremendous (economic & network) expansion- Heritage from existing (over)stressed network- Ambition to meet / lead international professional standards- Climatic challenges- Growing participation of national professionals9

Lessons Learned• Introducing AM: a well-guided gradual process• The core of asset management is risk management• Risk management requires:- Clear business values (and KPI’s)- Data quality (completeness, correctness, accessibility)- Transition: corrective condition based risk based thinking- A risk methodology (define, assess, prioritize, mitigate / control)Frequency # / year Severe High Medium LowPermanent > 1000Daily > 100Monthly > 10Yearly > 1Frequent > 0.1Likely > 0.01Possible > 0.001Improbable > 0.0001Barely possible < 0.0001Inadmissible Inadmissible Inadmissible HighInadmissible Inadmissible High MediumInadmissible Inadmissible High MediumInadmissible High Medium LowInadmissible High Medium LowHigh Medium Low NegligibleHigh Medium Low NegligibleMedium Low Negligible NegligibleLow Low Negligible Negligible10

Lessons Learned• Any improvement process requires:- A clear set of definitions (conceptual framework)- A reference to measure against (starting situation)- Clearly defined and measurable goals (the target situation)- A roadmap to drive by- Short term success to create a change basis- Key staff as a critical mass for change• Any software system should:- Support the process (and not govern it)- Support continuous learning andimprovement11

Lessons Learned• Pilot projects increase the success rate:- Gaining experience before “freezing” the AM approach- Getting acquainted with risk based thinking- Understanding the need for data quality- Short term success creates supportfor the changes to come- Enable better design ofprocess, formats, spec’s• Critical success factors- Well designed AM system- Careful implementation process- Support throughout organization12

Middle East points of interest• There is a range of maturity levels in present practice• These points of interest are relevant to several utilities:- Define clear (SMART) business values, KPI’s, goals- Create clear references for improvement- Use international best practice, adapt to local situation- Improve data quality (completeness, correctness, accessibility)- Change the philosophy of maintenance & replacement:- Corrective CBM RBM; selective introduction of monitoring &diagnostics, introduction of risk management methodologies- Enhance competence development (decrease dependence onexternal workforces)- Embed improvements in process & organization (continuity)13

AwarenessUrgencyGoalsRough approachReference measurementGap analysisPilot projectsProcess designOrganization designCIMData qualityIT designImplemenation planIntegrationMiddle East RoadmapDESIGNtimeIT SYSTEMTrainingIMPLEMENTATIONRoll out14

Thank you for your attentionVisit us at www.dnvkema.comDr Joseph Maria WetzerPrincipal Consultant Asset Management DNV KEMAT: +31 (0)26 356 63 88E: Jos.Wetzer@dnvkema.comwww.dnv.com

DNV KEMA Energy & Sustainability• DNV KEMA Energy & Sustainability offers innovative solutions to customers acrossthe energy value chain, ensuring reliable, efficient and sustainable energy supply,now and in the future.• Business and technical consultancy, expert advice, operational services• Testing, inspections, certification, verification• Risk, performance and quality management• Research and innovation• 2,300+ experts across all continents• KEMA and DNV combined: a heritage of nearly 150 years• Offices and agents in over 30 countries around the globe, including Abu Dhabi,Bahrain, Dubai, Oman, Qatar, Saudi Arabia16