Key Considerations when Procuring New Rail AssetsAdam Boughton Regional Executive Manager Sub Sahara Africa

• Effective rail management and maintenance across the lifecycle of an asset

• Asset lifecycle planning and the procurement process

Presentation Takeaways

Advise + technician = Advisian

Industry Sectors

Hydrocarbons

Upstream Onshore

Upstream Offshore

Midstream

Downstream

INTECSEA

Minerals & Metals

Light Metals

Industrial Minerals & Fertilisers

Precious & Base Metals

Bulk Commodities

Mining

Chemicals

Plastics & Polymers

Petrochemicals

Inorganic Chemicals

Infrastructure

Transport

Energy

Water

Environmental & Social

Advisian has a strong rail heritage with capability to provide consulting, EPCM and PMC services in Infrastructure and Rolling Stock, and Improve services and solutions.

In the General Freight and Heavy Haul sectors, WorleyParsons and Advisian has delivered projects that include Rolling Stock design, manufacturing Quality Management, Commissioning and Optimisation of Assets.

• Management of operating expenditure budgets in a fast paced regulatory environment

• Development of integrity management based solutions to keep abreast of new technological frontiers

• Migration of risk assessment and risk mitigation from component level to asset grouping and fleet scale level

• Keeping abreast of emerging technologies and selecting the best technology solution

• Management of capital expenditure and cost efficiency of operations within tightening financial markets

• Development of sustainable competitive advantages

Effective Asset Management

• Workflow Management• Cost Management• Change Management• Project Management• Maintenance Management

Maintenance Systems

Business Processes

Strategy

People

Integrity and Compliance

Performance Measurement

Reliability Engineering

Asset Management Services

- Asset Management Plans

- Business Strategy- Maintenance Strategy- Operational Readiness

• CMMS Support• Asset Coding• Data Conversion

• Procurement Management• Spares Analysis• BOMs• Rotables Management

• Best Practice Auditing• Maintenance KPIs and

Reporting• Benchmarking

• Statutory Compliance and standards

• Integrity (Electrical, Mechanical, Structural)

• Risk-based Inspection (RBI) Safety and Risk Management

• Competency Framework• Training• Organisational Structure• Productivity Measurement

• Built-in Reliability• RCA and RCM• FMA, FMECA• Availability and Capacity

Modelling• Criticality Analysis• RAM• Lifecycle Costing

Materials

Pillars of Asset Management

Asset Lifecycle Planning Prior to Procurement

Asset Planning through Asset Life

Critical in planning is: An assessment of assets and the development of an asset

management plan that becomes the foundation to the strategy of asset management planning and will provide the most effective outcome for assets through their life.

It is important that the plan considers the asset cycle and the changes that are required throughout the cycle – not one solution fits all and it must change as the asset gets older.

Return to the pillars of successful asset management. Each must be focused on in its own specific approach, appropriate for the asset. Each of these will also need to change in its degree of emphasis as the asset moves through its life. As such, it is important for the Asset Manager to anticipate the changes in advance and adjust the management approach to suit.

Break in or start-up Normal life Equipment worn outNum

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Performance Indicators

Most common are MDBF, MTBF, availability, cost, labour indexes, etc. However, a balanced scorecard specific for the business is needed

Overall Equipment Effectiveness (OEE)

OEE measurement is commonly used as a performance indicator in conjunction with lean manufacturing efforts to provide an indicator of success

OEE = Availability x Performance x Quality

Heavy Haul / Freight Operations example

OEE = % of Fleet in active operations x % Availability x % Time on train

Planning and Procurement

Before you consider procurement…

Do you understand your asset performance?

Do you understand what your assets (or operation) are capable of achieving?

• OEE• Condition• Inter-changeability• Lifecycle condition• Expected life

Considering Procurement?

Considering procurement of new assets?

Now you are considering procurement……

Golden Rule #1

You must balance “Innovative Benefits” versus “Risk Introduction”

Do you want to be:

A “leader in innovation” development ?OR

An “innovation laggard” in implementation ?

Considering procurement of new assets?

Now you are considering procurement……

Golden Rule #2

You MUST evaluate the solutions on a Whole of Life Cost basis

And this must be done is on a systematic and complete evaluation basis.

Whole Life Costing (WLC) is defined as:“a technique for examining and determining all the costs – in money terms – direct and

indirect, of designing, building and facility management (operating, maintenance, support and replacement) of a construction throughout its entire life, including the disposal cost”

Considering procurement of new assets?

Now you are considering procurement……

Golden Rule #3

Will you use a “Performance based” or “Prescriptive based” Specification

“Performance based Specification” allows you to specify the specific performance requirements you wish to achieve and provide contractual requirements to ensure the

performance targets are met.“Prescriptive based Specifications” are typically compliance to set criteria and Standards that

may be well-developed and proven and therefore do not necessitate the need for strict performance evaluations.

Advi

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For more information, please contact:

Adam Boughton – Regional Executive ManagerE-mail: adam.boughton@advisian.com

www.advisian.com