Workshop E, Extending the benefits life cycle: ISO 55000 by John Heathcote
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Transcript of Workshop E, Extending the benefits life cycle: ISO 55000 by John Heathcote
Extending the Benefits Lifecycle: ISO 55000 & Asset Management
Benefits Summit 25th June 2015
JOHN HEATHCOTE June 2015
ISO 55000 description>ISO 55001 is the requirements specification for an integrated, effective management system for asset management.
Note: 55001 defines requirements for a management system, in the same way as ISO 9001 specifies a quality management system, and ISO 14001 covers an environmental management system. ISO 55001 is not, therefore, a specification for an asset information management system (sometimes called "enterprise asset management" system). Such software systems are, however, recognised to be useful aids ('enablers') for good asset management.
ISO 55000 Defines asset management as..
..the "coordinated activity of an organization to realize value from assets"
In turn, Assets are defined as follows: "An asset is an item, thing or entity that has potential or actual value to an organization".
This is deliberately wider than physical assets but these form an important focus for more organizations.(NB there are important qualifying Notes to these definitions, which are set out in ISO 55000).
ISO 55000, notes: facilitating better benefit cases• Asset Management involves the balancing of costs, opportunities and risks against the
desired performance of assets, to achieve the organizational objectives. This balancing might need to be considered over different timeframes.
• Asset management also enables an organization to examine the need for, and performance of, assets and asset systems at different levels. Additionally, it enables the application of analytical approaches towards managing an asset over the different stages of its life cycle (which can start with the conception of the need for the asset, through to its disposal, and includes the managing of any potential post disposal liabilities).
• Asset Management is the art and science of making the right decisions and optimising the delivery of value. A common objective is to minimise the whole life cost of assets but there may be other critical factors such as risk or business continuity to be considered objectively in this decision making.
Power’s Programme exampleProjects Objectives Benefits
Spare Generator transformer Increased availability & risk capacity Profit, Capacity to sell to peaks!
Maintenance Shut Down Assurance, Certification, Reliability, Risk Mitigation
Regulation, Efficiency
Sulphate Injection Burn more products without pollution/emission Profit/ Regulation
Biomass fuel project CO2 legislation, More fuel PR/Regulation
Variable speed drives Upgrade plant, better efficiency Profit, Capacity to meet peaks.
Dynamic Classifier Fire efficiency, Pet coke & Bio fuel
Maintenance & Ops restructuring Work patterns flexibility Safety, Efficiency.
Boosted over air fire Emission compliance Cheaper products
Pet-Coke Substitute Cheaper fuel Profit
A value management process outline• Information: avoid the availability error• Problem definition: Root cause analysis• Option generation: suspension of judgement, avoiding first good
(tried & tested fallbacks) error.• Review with risks,• Recommend: Value function Benefit/£ resource (& risks to those
estimates/assumptions)
A progressive cavity pump example
J F M A M J J A S O N D0
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A Business/Value case: Progressive Cavity Pumps
Capex Cost of the SAME duty...0123456789
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PC Pumps Whole Life Cost Comparison.
• Make the best capital purchase decision.
• Take the Capital Saving!
• But……..
PC Pumps WLC Comparison
Capex Spares List0123456789
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Supplier 2
• Comparison becomes more difficult when we consider the spares list.
• But neither cost refers to the VALUE of the Investment!!!!!!
The Whole Value Chain
• Adding value means……..Taking a whole chain viewpoint. CAPEX
10%
Energy30%
Maintenance60%
WLCosts
PC Pumps Whole Life Cost Comparison.
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It’s Easier to compare plant performance, than to find the existing OPEX from the BU !
Pump Comparison ROI/Payback
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