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Evolvement of Power Utility Asset

Management in Recent Years Presented by Er. SEOW, Kang Seng, DNV GL

ENERGY

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24 October 2016

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Agenda

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Brief History of Power Utility Asset Management

Asset Management Decision Support Modelling Using Health Indexing

Trends in Further Evolvement of Asset Management Systems

Conclusion Asset Management System under the Framework of ISO 55000

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Brief History of

Power Utility Asset Management

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Understanding Infrastructure Asset Management

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•  Refers to the investment management; for example, the management of a stock or investment portfolio

•  Asset managers require financial and market knowledge to ensure reasonable returns and financial health of these financial assets

Financial Asset Management

•  Refers to the management of physical assets; for example, the management of assets in power plants or T&D networks

•  Asset managers require engineering expertise and knbowledge on asset lifecycle to ensure the assets serve their functions reliably, safely and cost-effectively

Infrastructure Asset Management

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“Terotechnology” – Care for Technology

§  1970 UK Department of Industry established the Committee for “Terotechnology”

“A combination of management, financial, engineering, building and other practices applied to physical assets in pursuit of economic life cycle costs.”

§  1975 The committee published ‘Terotechnology. An introduction to the management of physical resources’

§  1977 BSI BS 3843 ‘Guide to Terotechnology (the economic management of assets)’ Last updated in 1992, by British Institute of Management’s ‘Asset Management Group’

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Triggering Events for Asset Lifecycle Value Optimisation

•  North Sea Piper Alpha disaster that caused 167 fatalities, and the ensuing oil price crash on 6 July 1988

•  Escalating costs and poor planning in the public sector of Australia and New Zealand, etc. in the 1980’s

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Three Pillars of Competency

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Source: KEMA Asset Management White Paper March 2006

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Asset Management System under

the Framework of ISO 55000

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§  PAS 55 - Published 2004 & 2008 by IAM/BSI

ü Part 1: Requirements specification

ü Part 2: Implementation guidance

§  ISO 55000 series - Published 2014 by ISO

ü  ISO 55000 - Overview, principles and key

terms in Asset Management

ü ISO 55001 - Management Systems-Requirement

ü ISO 55002 - Management Systems-Guidelines for the application of ISO 55001

§  PAS 55 / ISO 55000 Series provide a definition, scope, and structure of Asset Management system

From PAS 55 and ISO 55000 series

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ISO 55000 Asset Management Framework

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Integral multi-disciplinary framework involving organization, processes, operations, planning, and performance evaluation.

Fundamental changes due to: 1.  Asset-related risk-based

decisions aligned throughout the organization

2.  Systematic use of high quality data (collection, sharing, analysis)

3.  A learning, improving organization

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ISO55001 Requirements

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Line of Sight

Source: “An introduction to the first international standard for asset management” by Mr. John Woodhouse, February 2014

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However…

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Power utilities need a full range of Services and Tools

for asset management to be successful!

These international standards do not give the answer on “HOW?”

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Proposed 4-phase framework for implementation

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Step-wise implementation of Asset Management System under ISO 55000

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A Case for Technical Asset Management

“There are many strategies to improve reliability. Rather than thinking of them as conflicting or contradictory, develop a road map that matches

the best tool to the characteristics of specific assets.” Kristian Steenstrup, VP and Gartner Fellow, Energy and Utilities

Technical Asset Management’s focus is on complex machines, where maintenance and analytics are used to support the reliable operation of the asset and to extend its useful life.

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Why Technical Asset Management?

§  Safety (Public, Internal) §  Maximizing the Life Span of an Asset

§  Cost Management

§  Reliability

§  Customer Service

§  Sustainable Operations

§  Regulatory Compliance

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Replacement wave (example: average life 45 +/- 5 years)

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Installation Replacement

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Technical Asset Management Methodologies

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Example of Technical Gap Analysis

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Use of IT Tools

1.   Scalability: IT tools should accommodate all assets the power utility likes to include for monitoring and maintenance;

2.   Lifecycle Coverage: IT tools should cover all available information and its trend over the lifecycle of the asset;

3.   Compatibility: When power utilities decide to adapt new condition assessment or monitoring software solution, IT tools should communicate core condition information on assets to one another; and

4.   Flexibility: IT tools should support any specific methods and information as a template in which the power utilities like to add or remove at any time.

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Asset Management Decision

Support Modelling Using

Health Indexing

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Examples of Health Indexing

§  Health Index refers to reference period and critical time §  Health Index relates to replacement or additional maintenance

§  Health Indices are presented as a colour code classification scheme

§  Colours represents action and urgency

§  Colour intensity represents reliability of assessment

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Assessment Approaches

Health Index Assessment of a Single Asset

Value, number classification (G, F, P)

Observation

Expert Opinion

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Asset Health Risk Management Risk Matrix Examples: §  Business value: Reliability

§  User defined impact classes

§  User defined acceptance criteria

§  Probability for Health Index

§  Plotting assets in matrix

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Trends in Further Evolvement of

Asset Management Systems

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Maintain / replace assets

with health condition and highest risk &

greatest importance

Run to Failure

Maintenance-Focused

Health & Risk- Focused

Time Based Condition Based Risk & Criticality Based

Asset Management Solutions

Modern Asset Management is to maximize reliability and minimize failure probability & risk

Maintain & replace based

on condition

Maintain at a set interval

Replace at the end of asset

design life

Repair/ replace on failures

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Trends in Further Evolvement

§  Moving from time-based to condition-based maintenance and further from condition-based to risk-based maintenance for most critical assets;

§  Smarter-Asset-Management:

–  Real-time information is captured and analysed; and

–  Real-time failure prediction function for decision making support.

§  Moving from Big Data to Smart Data:

–  Smart Data is the next level of dealing with Big Data in a smarter and more effective way; and

–  More advanced data analytics techniques will be adopted such as machine learning/artificial intelligence approach.

§  Integrated Energy Asset Management System - merging Asset Management System (AMS) with Energy Management System (EMS): The merger between the EMS and AMS will help address the Big Data more effectively.

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Appropriate IT Resources Integrating Asset Management Systems with other IT systems, such as Geospatial Systems, Distribution Management Systems, Energy Management Systems, etc. will help these systems in:

§  improving the accuracy in identifying critical contingencies by making use of more accurate component’s criticality and utilization information;

§  improving the performance by filtering out low failure probability;

§  better big-data management by using a single database;

§  improving the effectiveness by avoiding redundancy of assessments and processes; and

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§  optimising decision making processes based on a more comprehensive assessment considering both global and local aspects.

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Conclusion

The evolvement of Asset Management for the power utilities does not end with the adoption of these standards. Some of the recent trend includes:

§  Power utilities gradually moving their critical assets from time-based to condition-based maintenance and moving their most critical assets further from condition-based to risk-based maintenance;

§  Smarter Asset Management system is progressively evolved with advanced data analytics techniques using Big Data and Smarter Data; and

§  Integrated Energy Asset Management System that integrates with real-time Energy Management System; etc.

To achieve the abovementioned state of managing the assets cost-effectively with minimum risks, power utilities need to embark on a journey with external helps to develop resources, such as appropriate Asset Management System software with asset criticality, health and risks assessment capabilities, and relevant expertise within the organisation to manage such changes.

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Thank you

Seow Kang Seng, Principal Consultant Kang.seng.seow@dnvgl.com +65 8299 5462

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