The Key to Risk Identification_ How You Manage Asset Information

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7/22/13 The Key to Risk Identification: How You Manage Asset Information :: Asset Management :: Resource Library :: Life Cycle Engineering

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Articles Index >> Asset Management

The Key to Risk Identification: How You Manage Asset Information

By Mike Poland, CMRP, Life Cycle EngineeringAs appeared in the June Edition ofRxToday

Findings from recent catastrophic events, such as that in the Gulf of Mexico, have revealed that information relating to asset health was readily available but

not properly managed. Analysis of the Gulf of Mexico event indicated that there were conditions in critical assets that could have impaired performance prior

o and after the accident. A routine testing and maintenance program should have detected these conditions. This is an easy statement to make after a

catastrophic event occurs. What is much more difficult is to navigate the overwhelming number of specifications and standards available to corporations on

management systems and develop an asset management model that provides the transparency to asset health.

The first s tep is developing a management system standard that adequately addresses the s ix common elements from ISO 72:2001, Guidelines for the

ustification and development of Management System Standards:

Policy

Planning

Implementation and operation

Performance assessmentImprovement

Management review

This (and all other standards and specifications relating to management systems) follows the Plan, Do, Check, Act methodology of continuous improvement.

Now think of all the management systems we have relating to our business: quality management systems, asset management systems, performance or

production management systems, environmental, health and safety management systems. We need to integrate these systems to ensure common

elements are leveraged to manage the requirements and the data that provide us the transparency we require in risk identification and decision making.

PAS 99:2006, Integrated Management, figure 1, illustrates the common requirements such as information and information technology. Proper integration of

hese standards yields the following benefits:

Improved business focus

Holistic approach to managing business risk

Less conflict between systems

Reduction in duplication and bureaucracy

Effective and efficient internal and external audits

Figure 1: BSI PAS 99:2006

The next step is to have a risk-based asset management system in place like that depicted in figure 2. This management system, like the others, follows

he Plan, Do, Check, Act methodology. Following this methodology is critically important. When accidents occur, like the one in the Gulf, its often because

he management systems addressed the plan, do, and check, but lacked the act.
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Figure 2: Risk-based Asset Management System

One of the shortcomings of management systems is a key common element: information management. Once we appropriately classify our assets to

determine those critical to our value stream, we then perform the analysis and develop the control strategy to mitigate or eliminate risk. These control

strategies are requirements and executing these control strategies generates data. Here lies the most important point to this discussion. The investigation

report from the Gulf accident stated that a routine testing and maintenance program should have detected these conditions. This is not a simple s tatement.

The information contained in the data that is generated from these requirements is collected and stored in numerous locations on various IT sys tems. Figure

3 illustrates the complexity of management information at a refinery, which is an interpretation of figure C.1 of IEC 62264-1. The boundary of the Purdue

Reference Model (shaded in gray) is that information relevant to asset management.

Figure 3: IEC 62264-1, Enterprise-control system integration, part 1

e need to ensure we have identified how the data generated from our control strategy will be integrated to determine asset health and provide the

ransparency needed to identify, mit igate and eliminate risk. Figure 4 is an example of an asset management information sys tem model.

Figure 4: Asset Management Information Model

From this model, it is c lear that until we map the criteria to the condition, integrate the information, and provide it in a portal or dashboard, we will not have

an accurate indication of asset health and therefore we remain at risk. As technology advances, there are new and innovative ways to perform these

functions. But until we address these significant gaps, we will continue to have the information we need, but not use it to create value.

Mike Poland, CMRP, is the Director of Life Cycle Engineerings Asset Management Services group. With more than 25 years of engineering and


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http://www.lce.com/The_Key_to_Risk_Identification_How_You_Manage_Asset_Information_431-item.html

maintenance experience, Mike specializes in reliability processes and systems engineering with an emphasis on defect detection and elimination through

root cause analysis and risk based inspect ions. His approach to risk -based asset management and the elimination of limiting factors for c lients provides

greatly enhanced asset ut ilization at a much lower total cost of ownership. Mike can be reached at [email protected].

2011 Life Cycle Engineering, Inc.

For M ore Information843.744.7110 | [email protected]

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