2611_PAS55_and_SAP_-_Solutions_to_support_an_integrated_asset_management_system.pdf

8/11/2019 2611_PAS55_and_SAP_-_Solutions_to_support_an_integrated_asset_management_system.pdf

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Orange County Convention Center Orlando, Florida | May 15-18, 2011

PAS 55 and SAP: Solutions to support anintegrated asset management system

Karsten HauschildSAP Labs

Kim McArthur, Hydro OneNetworks Inc.


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Real Experience. Real Advantage.

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Learning Points

PAS 55 Good asset management practicesHydro One - Utilizing SAP solutions for achieving good assetmanagement practicesSAP solutions to support PAS 55


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[ About Hydro One Networks Inc.TransmissionOntario Coverage 97%52 Large Utilities113 Large Direct Customers26 USA/Canada InterconnectionsAssets (500/230/115 KV)Overhead - 28,600 ckt-km ;Underground cables - 272 ckt-kmStations - 275

DistributionOntario Coverage - 75%40 Small (embedded) UtilitiesAssets (44/ 27.6/ 13.8/ 8/ 4 kv)Overhead - 123,000 ckt-kmMV Stations: 1035;LV Transformers 520,000Urban load customers 280,000 (Brampton)Non-urban load customers - 1.2 million

Assets - $12.0 billionRevenue - $4.7 billionTerritory 647,000 sq. kmEmployees 4300Peak Demand 27,000 MW


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[ Who we are

100 year old Electrical Utility Company (T & D)

We were experiencing

In-house solutions or customizations

Siloed Information, programs & departments>2000 databases, spreadsheets, programs

We have pockets of excellencebut a lack of consistency

Our enterprise software was at its end of life


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[ Our SAP FootprintValue realized in:

Planning & Scheduling

Supply Chain

HR

Asset AnalyticsTime Reporting

Application Rationalization

$200M of benefits


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[ A New PerspectiveWith the assistance of aspecification from the BritishStandards Institution (BSI) and theInstitute of Asset Management(IAM)

Publicly Available Specification(PAS) 55

Asset Management

Note: Currently being used as a basis for anISO standard for Asset Management


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[ Publicly Available Specification (PAS) 55A specification developed by BSI / IAM

BSI PAS 55:2008 is:

the international reference standard forthe optimal management of physicalassets providing the definition of goodpractice in the whole-life management ofassets.

It is applicable to any organization wherephysical assets are a key or a critical

factor in achieving its business goals.It has 28 areas: of optimizedmanagement or good practice



[28 Areas of goodpractice

Holistic View

Publicly Available Specification (PAS) 55



[ Publicly Available Specification (PAS) 55

Rendered version..Information Availability

Communication

Consistent Infrastructure /Processes

Recording / Reviewing /Auditing yourself

Continual ImprovementParadigm

Good Business Practices



[ Process Assessment

Is designed to provide an organization with..Quantified evidence of its current level

A baseline and benchmark

A comparison of its capability against other organizations

A better understanding of good practice in asset management

Consists of:

Interviews, documentation and process review, records,compliance audits



[ Process Roadmap to Value



[

PM, PS, IM

BI / BW

RCM

HR, FI

BI / BW RCM

Why havent we scored compliant in those areas?

The Overlay. Fictitious PAS 55 Results / SAP



[ Value / Benefits

Can be found in..1. Reduced Costs (FTEs)2. Improved Performance3. Revenue Generation4. Risk Mitigation5. Intangibles

1, 2, & 3 are transactional benefits unit / cost or revenue

What we experienced

4 & 5 are harder to quantify Toothache?

To get rid of. Or to take on .



[ Finding additional Value

Other Initiatives

Partial

$250M

PAS 55 framework alignment

20 FTEs

SAP InitiativesIncorporated

$200M

PAS 55 topics

Additional ValueMissedOpportunities

Additional Value

MissedOpportunities



[ Finding Value Opportunities What we found.cultural deficienciesWith regards to

Compliance with processes, communication & record keepingTransparency of corporate strategies throughout the companyAvailability of documentation (policies, directives, processes)

For job completion, awareness and knowledge transfer

Lack of Continual Improvement paradigm...auditing what we are doing

the implemented modules (Reporting)the Asset Stewardship System holistically

monitoring improvement actions



[ Finding Value Opportunities

What we found.Improvement opportunities in:

Work planning & scheduling

Use of Functional Equipment Grouping (FEGs)Due to the visibility of the informationReliability Centred MaintenanceRoot Cause Analysis on the individual Bad Performers



[ In Summary .

SAP delivered the proposed value butDue to the health of our Asset Stewardship System, we didnt realizeour full potential value.

The cohesiveness and rigour around documentation, communication, processes,

auditing, culture, compliance in general was missing.

The recognized GOOD PRACTICE

Its the framework of PAS 55 that allows you to realize that additionalvalue!



[ Key points to take away With your EAM System

Ensure that information is consistentacross all information systemsProvide information access to allemployees and stake holders includingcontract services providers (Line of Sight)Identify key asset managementinformation considering all parts of thelife cycle

With your System of Asset StewardshipCommunicationConsistent Infrastructure / ProcessesRecording / Reviewing / Auditing yourself Continual Improvement Paradigm



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SAP as a PAS 55 enabler



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PAS 55 Goals and Key Principles: Asset Management

Howby systematic and coordinated activities andpractices

through which an organization optimally andsustainably manages its assets and asset systems

their associated performance,

risks and expenditures

over their life cycles

Achieving the Organizational Strategic Plan

Overall long-term plan for the organization that isderived from, and embodies its

Vision, mission, values

Business policies, stakeholder requirements, objectivesand

Management of risks



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Asset Management and Business Context*

* As defined in PAS 55

PhysicalAssetsInformation

Assets

HumanAssets

FinancialAssets

IntangiblesAssets

Important interface:motivation,

communication, roles andresponsibilities,knowledge,experience, leadership,teamwork

Important interface : life cyclecosts, capital investment criteria,operating costs, value of assetperformance

Importantinterface:condition,performance ,activities, costsand opportunities

Important interface:reputation ,image, morale, constraints,social impact

Vital context: businessobjectives, policies, regulation,performance requirements, riskmanagement



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Business Issues: Reliability Issues and Inefficient MRO

Frequent breakdowns of equipment Longer time to repair equipment Time wasted looking for maintenance

procedures and drawings Unplanned downtime risk

Excessive Downtime

Missing parts resulting in orderdelays

Inflated spares inventory Obsolete parts

Wasted Time and Resources

Cant forecast output because ofpoor reliability

High maintenance & operating costsdrag returns

Higher capital investment

Low Return on Assets

Inefficient supplier selection andbidding and PO process

Delays in service delivery Higher repair costs as contracts

are not used

Inefficient Service Procurement

Inefficient maintenance and operations lead to high costs, excessiveequipment downtime, and poor asset productivity



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Key Business Needs of Enterprise Asset Management

Business Needs

Maximize return on assets

Control maintenance cost

Support corporatesustainability goals

Er odingCustomerTrust

PoorDecisions

Lack ofCustomerConfidence

CostPressure

Operations in

Uncertainty

UnexpectedOpportunities

Requiring COO/Plant Manager to:

Maximize uptime : assets available when needed;move from reactive to predictive maintenance; extendproductive lifetime of assets

Keep assets profitable : control and reducemaintenance spend; effectively manage contractors;identify and disseminate best practice

Improve EH&S performance :Proactive health and safetymanagement, monitor andreduce emissions, reduce energyconsumption



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PAS 55 Context: SAP Solutions

SAP Enterprise Asset Management for reducing operatingcosts, better manage capital expenditures, and improve assetutilization from installation to maintenance, repair, anddecommission.

ERP Financials for financial reporting, planning, budgeting,controlling

ERP Human Capital Management for optimizing HR relatedbusiness processes and managing skills levels across an enterprise

Performance management solutions for strategy management

and scorecards to improve organizational alignment Governance, risk, and compliance solutions for operationalrisk management to proactively manage risks across businessprocesses

Employee Health & Safety application to ensure compliance withregulations for product safety, hazardous substances, dangerousgoods, and waste management

Business intelligence solutions to quickly search and explore dataand make effective, informed decisions

Mobility solutions for mobile asset management

SAP EAM


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PAS 55 Chapter 4.1 General Requirements

The organization shall establish, document, implement, maintain and continually improve an asset

management system in accordance with the requirements of this PAS.

SAP Business Suite as the underlying platform SAP Solutions for document management SAP Extended Enterprise Content Management by Open

Text SAP Digital Asset Management by Open Text SAP Document Access by Open Text

SAP Archiving by Open Text SAP Streamwork

Solution for Information Sharing /Distribution

of Documents / Collaboration


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PAS 55 Chapter 4.2 / 4.3: Asset Management Policy /Asset Management Strategy, Objectives and Plans

The organizations top management shall authorize an overall asset management policy.

Clearly communicate business goalsHelp companies improve performance and align execution withstrategy by connecting goals, initiatives and metrics

Prioritize Initiatives based on StrategyFocus on the initiatives that will have most impact andallocate resources appropriately

Cascade strategy across the enterpriseEnsure individuals understand how they can impact strategic goals andhow they impact others; accountability and exception management

Monitor resultsShow how an organization is performing towards their strategic goals

Measure performanceQuickly assess strategic performance and execute on areas that requireaction

SAP BusinessObjects Strategy Management


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Gain visibility and control align objectives, monitor andanalyze performance, report, and drive continuous improvement

Proactively reduce risks systematically identify, assess,and control risks to prevent incidents and management system

failures

Improve EHS performance automate EHS processes incore operations to improve compliance, productivity, andoperational continuity

Maximize asset productivityoptimize maintenance to improve assetreliability and process safety

Enterprise Risk Management

Analytics & Performance Mgmt.

Asset Safety and Reliability

Integrated EHS Management


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The organizations top management shall authorize an overall asset managementpolicy. Specifically it states that the asset management policy shall be documented,implemented and maintained; be communicated to all relevant stakeholders.

Basic and effective support: SAP Solutions for document management SAP Extended Enterprise Content Management by Open Text SAP Digital Asset Management by Open Text SAP Document Access by Open Text SAP Archiving by Open Text SAP Streamwork Advanced solutions:

SAP Solutions for Operational Risk Management

Solutions for Information Sharing /Distribution of Documents

Advanced Solutions SAP Solutions for Operational Risk Management


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PAS 55 Chapter 4.4: Asset Management Enablers andControls

This chapter addresses the roles, responsibilities and authorities to execute uponstrategies and objectives on a more operational level. It deals also with asset relatedrisks and outsourcing certain aspects of asset management activities, informationmanagement as a system that tracks the lifecycle of an asset, and legal, regulatory,statutory and other applicable asset management requirements.

Planning, Building, andCommissioning Assets

Asset Visibilityand Performance

Operational Risk Management

Optimized Asset

Operations and Maintenance

Real Estate Lifecycle Management

Plan &Design

Procure& Build

Com-mission

Operate MaintainDecom-mission


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PAS 55 Chapter 4.5: Implementation of AssetManagement Plans

The organization shall establish, implement and maintain process( es) and/orprocedure(s) for the implementation of its asset management plan(s) and control ofactivities across the whole life cycle. Furthermore it is noted that The organizationshall ensure that tools, facilities and equipment are maintained and, where appropriate,calibrated. The organization shall establish and maintain process(es) and procedure(s) tocontrol these maintenance and calibration activities, where such tools, facilities and

equipment are essential for.

SAP Enterprise Asset Management (SAP EAM) acts as thecentral asset registry and information hub when it comes to trackand control all maintenance activities

The SAP solutions for document management and

content management support this requirement in its mostbasic and effective fashion

The SAP Solution Manager supports youthroughout the entire life-cycle of an SAPimplementation, from the Business Blueprint tothe configuration to managing the test andproduction system.


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PAS 55 Chapter 4.6: Performance Assessment andImprovement

This chapter addresses requirements around performance and condition monitoring,investigation of asset-related failures, evaluation of compliance, auditing of an assetmanagement system, improvement actions, and record keeping.

SAP Enterprise Asset Management (SAP EAM) acts as thesystem of record for the handling and investigation of failures andincidents of assets and asset systems

Partner solution: Meridium RCMO (Reliability CenteredMaintenance and Optimization),

SAP Solutions for Operational Risk Management


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Operational Risk Management Solution Portfolio

D a

t a I n t e g r a

t i o n

B u si n

e s sP r o

c e s sI n

t e gr a

t i on

Visibility andPerformanceManagement

Business Analytics

PerformanceManagement

StakeholderReporting

AuditManagement

Risk Management

Risk Planningand PortfolioManagement

RiskIdentificationand

Assessment

Corrective &Preventive

Actions

RiskControls andMonitoring

Environment,Health & SafetyManagement

OccupationalHealth andSafety

IncidentManagement Process Safety

EnvironmentalCompliance

Asset Reliability andSafety

Maintenanceand WorkOrderManagement

Reliability-CenteredMaintenance

WorkClearanceManagement

MobileAssetManagement

Training, Action Management, SOPs, Hazard Communication, Document Management

Workf low enabled bus iness p rocess and ac t ion m anagement wi thpre-bui l t in tegra t ion acros s co re bus iness opera t ions


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PAS 55 Chapter 4.6: Performance Assessment andImprovement

Asset ManagementRisk Management

Historians,ControlSystems

Production PlantMaintenanceTranspor

-tationSCM FacilitiesFinance

CorrectiveActions andControls

Risk PortfolioManagement

RiskIdentificationand Assessment

Maintenanceand Work

OrderManagement

ReliabilityCenteredMaintenance

Work ClearanceManagement

EHS Management

EnvironmentalCompliance

IndustrialHygiene andSafety

HazardCommunication

OperationalVisibility

Carbon FootprintRisks by Geography

InitiativesKPIs

Closed Loop Management System


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PAS 55Chapter 4.6: Performance Assessment andImprovement Best Practice for Continuous

Improvement Approach

People Safety &Incident Management

Continuous, PervasiveAssessment of Risk

EnvironmentalImpact

Asset Reliability

ContinuousMonitoring &Improvement

High PerformanceReporting

AuditingCorrective Actions

PLAN

CHECK DO

ACT

Corp. HQ Strategy andRisk Appetite


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PAS 55Chapter 4.6: Performance Assessment andImprovement

Continuous, PervasiveAssessment of Risk

EnvironmentalImpact

Corp. HQ Strategyand Risk Appetite

Asset Reliability

ContinuousMonitoring &Improvement

High PerformanceReporting

AuditingCorrective Actions

PLAN

CHECK DO

ACT

SAP Enterprise AssetManagement

SAP ERP:Audit Management

SAP BusinessObjects:Business Intelligence

SAP EHSManagement ,Environmental

Compliance

SAP EHS

SAP BusinessObjects RiskManagement;

SAP EHS Management

SAP BusinessObjects:Enterprise Information

Management

SAP BusinessObjects:Enterprise Performance Mgmt; SAPBusinessObjects Risk Management


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Example: Solution Reduces Losses at the Plant, SharesBest Practices and Increases Visibility

Deployed at 17 Refineries, integrating:4 distinct process historiansDozens of disparate legacy systems anddatabasesProprietary technologiesHighly detailed and inconsistent dataDistributed IT infrastructurePlant reporting

Executive Operations Center:Enables plant performance visibilityEstablishes best practice metricsand greater collaborationShares safety, performance andinnovation across operationsEnhances compliance assuranceand equipment availability

Performance Metrics:Volume throughput / yieldInventory / Spares utilizationProcess safety managementEnvironmental performanceEnergy management


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Example: Pemex Gas Ensures Visibility to Production,Maintenance and Compliance with SAP

Challenges

Lack visibility to gas production andoperations dataInability to ensure compliance foroperationsLack ability to align work orders withfield maintenance servicing

Objectives

Gain access and flexibility forexamining gas production operationsAbility to examine production,environmental, health, safety,compliance or maintenance data insingle dashboard

Implementation Highlights

Deployed solution across 10 gascomplexes and 71 processing units in4 monthsIntegrated mobility solutions; enablingworkers to receive alerts via PDAsand cell phones

Why SAP?

Support for end-to-end planning andexecution processesExtension of Pemexs success withSAP solutionsSAP offered broadest solution forEH&S compliance, visibility andmobilityLeveraging of ongoing R&Dinvestment by SAP

Benefits

Greater visibility to productionoperations, compliance andmaintenance across corporation

Reduced time to return-on-investment due to quickimplementationGreater receptivity and interestfrom production workers onmobility and automation solutions

We needed greater visibility to our gas productionand operations, as well as compliance status.Implementing these solutions enabled us to achieve

our goals and create a foundation from which toexpand in the future . Gabriela Torres Ramirez, Deputy Director of PlanningPemex Gas and Basic Petrochemicals


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PAS 55 Chapter 4.7: Management ReviewIn order to review in appropriate interval an organizations asset management topmanagement needs records or reports on the asset management performance of the

organization.

SAP offers a wide spectrum of business intelligence solutions whereexecutive can gain meaningful, industry-specific, role-based insightinto their business performance. Self-service business intelligencetools can enable your business analysts to analyze data across diverse

data sources, determine trends, and predict potential outcomes.

SAP BusinessObjects Business Intelligence (BW) solutions SAP Crystal Reports SAP BusinessObjectsWeb Intelligence SAP BusinessObjects Predictive Workbench SAP BusinessObjects Dashboards SAP BusinessObjects Explorer

SAP Solutions for Operational RiskManagement


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Delivering Optimized Management of Physical Assets

Measure, monitor and reduceemissions

Monitor compliance withallowance limits

Trigger maintenance directlyfrom emissions monitoring

Control and Reduce Emissions

Measure and monitor energyconsumption

Identify biggest enery consumers Enhance maintenance strategy to

max uptime and min energyconsumption

Reduce Energy Cost

Analyze Health & Safetyperformance

Incident reporting as basis forspotting problem areas

Implement safeguarding actions Enforce safe working practices

Health and Safety

Enforce best practice streamlinedmaintenance procedures

Effective sourcing of services withdefined service structures

Efficient management and sign-off ofservice contractors

Reduce OPEX Implement life prolonging maintenancestrategies to avoid asset replacement

Focus maintenance activities to safeguardavailability of critical assets

Avoid asset failure through focusedinspections and condition monitoring

Manage with low CAPEX

Maximize uptime to ensure availability

of assets for revenue generation Asset visibility enables flexibility of asset

deployment in alignment withproduction needs

Increase OperationalEffectiveness

Streamlined maintenance processes integrated with the rest of the businessenable efficient and sustainable enterprise asset management.


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Key Learnings

PAS 55 is quickly becoming the recognized standard for amodern, integrated and optimized asset management practice.PAS 55 is a continuous journey: Good asset management isfirst of all a business approach and includes changemanagement to achieve continuous improvements along theway.PAS 55 isnt a certification of software applicationsPAS 55 brings up the need for a holistic, cross-department andintegrated enterprise asset management solution.SAP solutions act as the business process platform enablinggood asset management practices.

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2611_PAS55_and_SAP_-_Solutions_to_support_an_integrated_asset_management_system.pdf

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