Evolution Maintenance Management to Physical

Asset Management

Craig Henry Pr Eng

Vice-President

Southern African Management Association

Development time-line of physical asset management

Overview of the ISO 55000 development process

Current developments in the global asset management association landscape

Introduction to the South African Asset Management Association (SAAMA)

Contents

Building environment

•Facilities Management

Public/Economic infrastructure

• Infrastructure Asset Management

Industrial assets

•Reliability and Maintenance Management

All asset types

•Physical Asset Management

Major parallel streams/disciplines/interested parties

in AM

Training costs

Operational costs

Maintenance and repair costs

Decommissioning costs

Technical data costs

Spares and holding costs

Special testing costs

Legal or statutory

Life-cycle costs - The iceberg view

Acquisition costs

[1] Blanchard B.S, Logistics Engineering and Management, Second Edition, 1998

The concept and feasibility stage has an actual cost of 3% of LCC but by the time this phase is completed, 70% of the total LCC would have been determined or locked-in.

The design and development stage has an actual cost of 12% of LCC but by the time this phase is completed, 95% of the total LCC would have been determined or locked-in.

The production and operation stage accounts for 85% of LCC and has a negligible influence on the LCC, it has already been determined by the preceding two phases

Life-cycle cost - Locked-in

Vallabh D, Guidelines for Equipment Reliability, Technology transfer #92031014A, SEMATECH, 1992

Development time-line of Physical Asset Management

1990 2014

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2014/04/01

ISO 55000 to be published

2009/01/01

ISO 55000 development commences2004

PAS 55 first published

2008

PAS 55 2008 revision

2011

IIAM 2011 edition

2006

IIAM 2006 Edition1995

New Zealand Asset Management Manual

2000

IIAM 2000 Edition1993

Australian National Asset Management Manual 2006

SA dplg, Guidelines for infrastructure Asset Management (2006 - 2009)

2008

SA National Treasury - MFMA: Local Government Capital

Asset Management Guideline

ISO 55000 development process

ISO development process

Approved work item is developed by committee until consensus is reached in the committee. (In case of doubt, approval by 2/3 of the P-members voting may be considered to constitute consensus.)

The text is submitted to all ISO member bodies for a five-month vote as a draft International Standard (DIS) and is approved if two-thirds of the P-members vote affirmatively and not more than a quarter of all votes cast are negative.

A final text is prepared taking into account member body comments on the DIS and this text is issued for formal vote as a final draft International Standard (FDIS).

If the text is again approved by two-thirds of the P-members voting and if not more than a quarter of all votes cast are negative, then the text is approved and the Central Secretariat publishes the International Standard.

The ISO 55000 series documents

• ISO 55000 document’: Overview, Principles and Terminology

• ISO 55001 document’: Asset Management – Management Systems -

Requirements

• ISO 55002 document’ ’: Asset Management – Management Systems

– Guidelines for the application of ISO 55001

Comparison of Asset Management System elements

ISO 55000 AM System

IIAM AM System

PAS 55 AM System

PASS 55 AM System

Typical elements of an asset management system

Ways forward from ISO 55000 series

ISO 55000/1/2 available for purchase though SABS

Companies can, similarly to ISO 9000 as example, apply for accreditation by SANAS to certify others in ISO 55000

ISO 55000 can, if considered beneficial, be departure to develop a SA Standard in Asset Management and could if referenced by an Act/Legislation, become a compulsory specification/standard

Ways forward from ISO 55000

Standards staff conduct a final edit to verify conformity with the applicable editorial and procedural requirements and then publishes and disseminates the standard.

The committee approves the technical content by letter ballot or recorded vote.

The draft is offered to the public for review and comment, the TC reaches consensus, Standards staff conduct a quality review and a pre-approval edit is completed.

The TC or SC – facilitated by Standards – staff develops the draft through a process that typically involves a number of committee meetings.

Public notice of intent to proceed is published and a TC is formed or the project is assigned to an existing TC.

On receipt of a request for the development of a standard, an evaluation is conducted and the project is submitted for authorization.

Approval Stage Step 6

Enquiry Stage Step 5

Proposal Stage Step 2

Preparatory Stage Step 3

Committee Stage Step 4

SABS’s Standards Development Process

Preliminary Stage Step 1

A working draft is prepared and a project schedule is established.

Publication Stage Step 7

Development of a national standard

Working Draft (WD) developed by Working Group (WG).

WD circulated as Committee Draft (CD) once WG is satisfied with WD.

CD circulated for 3 weeks comment period to TC/SC.

Comments received, collated and resolved during TC/SC meeting.

Development of a national standard

Once all comments have been resolved – preparation of Draft South African Standard (DSS).

DSS circulated for Public Enquiry – 60 DAYS.

If any comments received of a technical nature – submitted for a second DSS.

No comments of a technical nature – proceed to publication.

Global asset management landscape

http://gfmam.org

Vision:

To be a worldwide community of organizations

providing leadership for maintenance & asset management communities

http://gfmam.org

Objectives:

To bring together, promote and strengthen the Maintenance and Asset Management community worldwide

To support the establishment and development of associations or institutions whose aims are maintenance and asset management focused

To facilitate the exchange and alignment of maintenance and asset management knowledge and practices

To raise the credibility of member organizations by raising the profile of the Global Forum

Objectives

http://gfmam.org

GFMAM members

Brazilian Maintenance

and Asset

Management Society

(ABRAMAN), Brazil

Asset Management

Council (AMC),

Australia

European Federation

of National

Maintenance Societies

(EFNMS), Europe

Federación

Iberoamericana de

Mantenimiento (FIM),

Latin Americas,

Portugal & Spain

Gulf Society of

Maintenance

Professionals (GSMP),

Arabian Gulf Region

Institute of Asset

Management

(IAM), UK

Plant Engineering and

Maintenance

Association of Canada

(PEMAC), Canada

The Society for

Maintenance and

Reliability Professionals

(SMRP), USA

The Southern African

Asset Management

Association (SAAMA),

South Africa

Identify all

available

standards

relating to

maintenance

and asset

management

Compare

existing

certification

schemes to

determine the

possibilities for

alignment

Identify the

basis for all

asset

management

qualifications

currently

available

globally

Developed a

framework,

content,

principles and

guidelines for

asset

management

Analysis of the

links between

maintenance

and asset

management

Centralised

knowledge

repository

http://gfmam.org

GFMAM Projects

Knowledge

database

Scope of

Maintenance

and Asset

Management

Landscape Accord Certification Assessment of

standards and

terminologies

The AM Landscape

Asset Management Decision-Making

Asset Management Policy Asset Management Strategy Demand Analysis Strategic Planning Asset Management Plan

Asset Management Strategy and Planning

Whole-life Cost & Value Optimisation Operations & Maintenance Decision-Making Capital Investment Decision-Making Resourcing Strategy & Optimisation Shutdowns & Outage Strategy & Optimisation Ageing Assets Strategy

Asset Management Subject Group

Lifecycle Delivery Activities

Technical Standards & Legislation Asset Acquisition & Commissioning Systems Engineering Configuration Management Maintenance Delivery Reliability Engineering Asset Operations Resource Management Shutdown & Outage Management Fault & Incident Response Asset Rationalisation and Disposal

Asset Management Subject Group

Asset Knowledge Enablers

Asset Information Strategy Asset Knowledge Standards Asset Information Systems Asset Data and Knowledge

Organization and People Enablers

Contract & Supplier Management Asset Management Leadership Organizational Structure & Culture Competence & Behaviour

Asset Management Subject Group

Risk & Review Criticality, Risk Assessment and Management Contingency Planning & Resilience Analysis Sustainable Development Weather and Climate Change Asset & Systems Change Management Assets & Systems Performance & Health Monitoring Management Review, Audit & Assurance Accounting Practices Stakeholder Relations

Asset Management Subject Group

SAAMA Introduction

SAAMA Services

SAAMA Stakeholders

Profession (collective)

Individual AM'rsIndustry of asset

owners, producers and

service providers)

· Establish the profession

· Grow number of

professionals &

candidates

· Nurture its stature in

eyes of society

· A desirable / aspired

space to do business

· Grow the industry

participants

· Globally competitive

industry

· Many professionally

registered practitioners and

strong candidate pipeline

· Recognised leaders

· Desirable / Aspired

occupation

· Pride

· Strong sense of satisfaction

as members of SAAMA

SAAMA Services

Advancing the Profession of PAM

Professional body established and

operated

Professional statuses

Professional statuses defined

Registration as professionals

Development framework to

professional status

Setting and maintaining the STANDARD(S)

Individual AM’rs

Knowledge access, local/global

Professional framework within which to aspire, develop and be

recognised

Continuous professional development

Platform to be differentiated/

recognised

Access to thought/practice

leadership

Non-professional status BUT

certification of competence

SAAMA Services

IndustryAsset owners and

operators

Asset engineers/producers/

constructors

Asset maintainers

Asset Managers

Consultants

Teachers/Trainers/Developers of AM’rs

Service providers

AM technology providers WANTS/NEEDS:

· Ability to differentiate credible/reputable service providers

· Ability to differentiate people skill/competence

· Minimum standards/benchmarks

· Access to thought/practice leadership

· Benchmarking against local and international counterparts/industry

· Recognition for leadership/excellence

WANTS/NEEDS: · Grow the business opportunity space

· Minimum standards/benchmarks

· Platform to be promoted

· Platform to be differentiated / Accredited / Certified

· Market intelligence beneficial to the whole

· Access to thought/practice leadership

· Benchmarking against local and international counterparts/industry

· Recognition for leadership/excellence

· Doorway to international/global associations and institutions

Established as the Professional Body with SAQA

Registered as the Assessment Quality Partner (AQP) with the QCTO for the current occupation of 212903: Physical Asset Manager (NQF 7-8) and 333911: Physical Asset Practitioner (NQF 5-6)

Establish a certification programme recognising knowledge and experience

Continue to represent SA in the global community of asset management

SAAMA strategic 2014/2015 goals

Southern African Asset Management Association NPC

www.saama.org.za | info@saama.org.za | shaana@saama.org.za

T +27 12 665 3387 | T/F +27 12 665 3322 | C +27 83 388 4636

Skype: shana.liebenberg

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Thank you