© ATKINS, 2017 Practical examples and benefits of Asset Management … · Outline of the Presentation 3 Why Asset Management? Challenges faced by our clients Benefits Asset Management

Practical examples and benefits of

Asset Management and ISO 55000

Dr Navil Shetty

Fellow and Technical Chair for Asset Management

© ATKINS, 2017

CEAI – IAM Seminar on

MANAGING PHYSICAL ASSETS TO DELIVER

BUSINESS OUTCOMES COST EFFECTIVELY

12 October 2017, Mumbai, India

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Navil is the global lead for strategic infrastructure asset management within the Atkins Group responsible for developing

Atkins capability and market position in this area. Dr Shetty is based in London but works across the world.

Navil also plays a leadership role within the Institute of Asset Management (IAM) which is a global professional body

focussed on the creation and dissemination of knowledge in Asset Management.

His key professional activities and achievements include:

• Convenor, ISO/PC251 developing the ISO 55000 suite of standards on Asset Management

• Co-author, BS PAS 55: 2008 standard on Asset Management

• Institute of Asset Management President’s Award Winner, 2013

• Member, IAM Faculty and Knowledge Leadership Group and Member, IAM Council during 2008 –2013

• Played a key role in IAM Projects on AM Excellence, AM Anatomy, SAM+ Tool, etc.

• Member, Steering Group for BS 1192-3 (Asset Lifecycle BIM)

• Member, Steering Group for BS 8536-2 (Soft Landing – AM requirements for major projects)

Navil has over 25 years of experience in strategic infrastructure asset management & risk management across several

industry sectors. He has provided strategic advice to major asset owners around the world such as MTA New York,

London Underground, Network Rail, High Speed 2, Heathrow Airport, Severn Trent Water, RTA Dubai, Abu Dhabi

Government, SMRT Singapore, etc.

Dr Navil Shetty

Director, Fellow & Technical Chair for

Asset Management, Atkins Limited

Outline of the Presentation

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Why Asset Management?

▪ Challenges faced by our clients

▪ Benefits

Asset Management and ISO 55000 standards

▪ Key concepts and principles

▪ Asset management excellence journey

▪ ISO 55000 standards

digital-Enterprise Asset Management

▪ Key concepts and principles

▪ Digital transformation of asset lifecycle management

▪ Maximising the value of information through BIM

Practical Applications and Benefits

Why Asset Management?

Infrastructure authorities and other asset owners face a number of

external and internal challenges in managing their assets. They can

derive huge benefits by adopting asset management approaches in

terms of cost savings, improved risk control and enhanced outcomes

for the business, customers and stakeholders

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What challenges do infrastructure authorities face?

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The usage and duty on assets is rapidly increasing with time, combined with greater demand from public for safety, reliability & value-for-money

The infrastructure in most developed countries has deteriorated over time as a result of prolonged underinvestment leading to increased risk of asset failure and service interruptions

Available funding is not sufficient to recover the backlog quickly and bring the assets to a ‘state of good repair’. This is compounded by logistical constraints and limited window to undertake maintenance and renewal

Need to balance diverse and sometimes conflicting expectations and priorities of different stakeholders (National Govt., Regional Govt., regulators, customers, shareholders, etc)

Need to ensure longer term sustainability; achieve carbon reduction while supporting economic competitiveness and make assets resilient to the impacts of climate change

Increasing demand

Deteriorating asset base

Conflicting priorities

Sustainability & climate change

Funding constraints

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Infrastructure deficit – A global crisis

▪ Sustained underinvestment in infrastructure over several decades has resulted in a massive backlog requiring trillions of $ recovery fund around the world.

▪ $57 trillion global infrastructure investment needed in 2013-30 ($3.2 trillion/year) to sustain current service levels and meet future demand (~ 3.5% of GDP); but excludes recovery of backlog (McKinsey Report)

▪ $101 billion per annum wasted in USA due to road congestion

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Size of the prize!Benefits of getting Asset Management right

Benefit potential over 5 years Evidence from leading organisations

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Improved performance (capability, reliability, availability, condition, etc):(~ 15% to 30%)

Network Rail, UK (2006-10):• 27% reduction in cost, &• 30% performance gain

Network Rail, UK (2010-14): • 27% reduction in cost

Hong Kong MTR• Train operating costs reduced by 20%• Train reliability: MTBF improved from 1000km to

3500km between failures

Oil company: • 50% reduction in operating costs & • 15% increase in production output.

Scottish Power• 10% reduction in capital expenditure• 20% reduction in O&M costs• 22% increase in plant availability• 25% reduction in forced outages

London Underground, UK:•15% reduction in Opex by early renewals

Improved customer satisfaction :(~ 20% to 30%)

Increase in revenue/output:(~ 15% to 20%)

CO

ST Reduction in whole life cost of ownership:(~ 30% to 40%)

RIS

K Risk reduction:

(~30% to 40% reduction in financial losses)

SUST

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Economic

Environmental

Social

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Asset Management and ISO55000

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Asset management is a strategic approach to managing

assets in delivering organisational objectives and

outcomes. The approach is founded on balancing

lifecycle cost, risk and performance at an individual asset,

asset system and asset portfolio.

What is Asset Management?

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*processes include people, resources, processes, information and technology

Asset Management

coordinated activity of an organization to realize value from assets

Asset Management System

set of interrelated or interacting elements of an organizationto establish AM policy and AM objectives; and processes* to achieve those objectives

Asset

an item, thing or entity that has potential or actual value to an organization

Asset Management Foundationsdefined by ISO 55000

● Value

– Assets exist to provide value to the organization and its stakeholders

– Asset management does not focus on the asset itself, but on the value that the asset can provide to the

organization.

– The value (which can be tangible or intangible, financial or non-financial) will be determined by the organization and

its stakeholders, in accordance with the organizational objectives

● Alignment

– Asset management translates the organizational objectives into technical and financial decisions, plans and activities

– Asset management decisions (technical, financial and operational) collectively enable the achievement of the

organizational objectives

● Leadership

– Leadership and workplace culture are determinants of realization of value.

– Leadership and commitment from all managerial levels is essential for successfully establishing, operating and

improving asset management within the organization

● Assurance

– Asset management gives assurance that assets will fulfil their required purpose

– Performance monitoring, audit, management review and continual improvement processes

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Need for a strategic, holistic approach

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Asset management seeks to optimise cost, risk and performance of assets over their lifecycle at an individual asset, asset system and asset portfolio levels.

Whole Life Alignment

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Asset management enables realisation of value from assets by translating business objectives into decisions and actions

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Case Study: UK Midland Links ViaductsNeed for taking a lifecycle approach during design and construction

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• Deterioration of RC crossbeams due to chloride ingress

• Posed unknown risks to public safety

• Extensive programme of testing

• Developed probabilistic loading,capacity and deterioration models

• Innovative repair/remediation methods

• Quantified risk-prioritised repair/remediation programme

➢ Think lifecycle at the time of design

➢ Consider asset criticality and risk at the time of design

Case Study: Heathrow Airport

Q6 Asset Renewal Planning

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Asset Replacement programme aims to:• Identify and prioritise asset replacements

• Improve resilience of key asset systems

• Reduce operational expenditure and energy costs

• Improve the passenger experience

The programme covers the entire airport encompassing the entire range of airside and landside facilities.

We developed an optimised asset renewal plan to deliver Heathrow’s strategic goals and customer service propositions at a cost of £750m over 5-years against an initial estimate of £1.0bn saving £250m.

Hierarchy of AM activitiesAsset management involves different types of activities

AssetPortfolio

Asset Life Cycle Activities directly applied to assets during different life cycle stages, such as acquisition, utilization, maintenance or disposal.

Strategic Alignment Activities such as setting AM objectives, planning, risk management, performance evaluation to align Asset Life Cycle Activities to organizational objectives

Direction, Coordination and Control Activities such as leadership, governance, policy, performance evaluation, review and continual improvement to ensure consistent delivery of AM objectives

Organizational Management Activities such as leadership, governance, strategy, organizational planning, HR, Finance, IT, Procurement, etc

Boundary of

Asset Management

©ATKINS

ISO 55001 has requirements on all of the above activities to varying extents

The ISO 5500x Standards

ISO 55000: Asset management –Overview, principles and terminology

ISO 55001: Asset management –Management systems – Requirements

ISO 55002: Asset management –Management systems - Guidelines on the application of ISO 55001

Feb-11

Jun-10

Aug-10

Jan-14

ISO 55001: Asset Management –Management System Requirements

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7.1 RESOURCES7.2 COMPETENCE7.3 AWARENESS7.4 COMMUNICATION7.5 INFORMATION REQUIREMENTS7.6 DOCUMENTED INFORMATION

SUPPORT

4.1 UNDERSTANDING THE ORGANIZATION AND ITS CONTEXT4.2 UNDERSTANDING THE NEEDS AND EXPECTATIONS OF STAKEHOLDERS4.3 DETERMINING THE SCOPE OF THE ASSET MANAGEMENT SYSTEM4.4 ESTABLISHING THE ASSET MANAGEMENT SYSTEM

CONTEXT OF THE ORGANIZATION

5.1 LEADERSHIP & COMMITMENT5.2 POLICY5.3 ORGANIZATIONAL ROLES, RESPONSIBILITIES & AUTHORITIES

LEADERSHIP

6.1 ACTIONS TO ADDRESS RISKS AND OPPORTUNITIES

6.2 ASSET MANAGEMENT OBJECTIVES AND PLANS TO ACHIEVE THEM

PLANNING

8.1 OPERATIONAL PLANNING AND CONTROL

8.2 MANAGEMENT OF CHANGE8.3 OUTSOURCING OF AM ACTIVITIES

OPERATION

9.1 MONITORING, MEASUREMENT, ANALYSIS AND EVALUATION

9.2 INTERNAL AUDIT9.3 MANAGEMENT REVIEW

PERFORMANCEEVALUATION

10.1 NON-CONFORMITY & CORRECTIVE ACTION

10.2 PREVENTIVE ACTION10.3 CONTINUAL IMPROVEMENT

IMPROVEMENT

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©ATKINS

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Key points to note about ISO5500x

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● These are generic standards covering all asset types and industry sectors

● Cover physical as well as intangible assets such as data, digital content, software, etc.

● Intended for auditing and certification

● Define only the ‘what to do’ and not the ‘how to do it’

● Each organisation needs to interpret requirements for their context and develop appropriate systems, processes and competencies, i.e. define the ‘how’.

Participation in ISO/PC 251

1. Argentina2. Australia3. Canada4. Czech Republic5. Denmark6. Finland7. France8. Germany9. India

10. Ireland11. Italy12. Japan13. Republic of Korea14. Mexico15. Netherlands16. Peru17. Portugal18. South Africa

19. Spain20. Sweden21. Switzerland22. United Kingdom23. United States of America24. United Arab Emirates25. China26. Belgium27. Norway28. Chile

1. Armenia2. Austria3. Hong Kong4. Iraq5. Israel

6. Malaysia7. Morocco8. New Zealand9. Slovakia10. Thailand

Participating Members

Observing Members

Courtesy: PC251

Uptake of ISO 55000 Standards

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● Already translated in French, Portuguese & Dutch

● Being translated into Chinese and Russian

● Already being used by over 500 organisations who previously had adopted PAS 55

● New sectors such as ports, shipping, hospitals, defence, finance, insurance are beginning to use ISO 55000

● Being applied to non-physical assets such as software, information, etc

● Being used as an ‘umbrella’ standard by others standards such a Software AM, Water AM, etc.

Uptake of ISO 55000 in India

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● Approved and published by Bureau of Indian Standards

● Financial institutions such as World Bank and Asian Development Bank are mandating the use of ISO 55000

● To speaker’s knowledge following are using ISO 55000:

– Reliance Power – certified to ISO 55001

– Bangalore Water and Sewage Services Board

– Karnataka PWD – Planning & Roads A.M. Centre

– 4 other state PWDs

– Others?

Asset Management Excellence Journey

Majority of infrastructure owners

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Case Study: Structural Integrity Management

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Oil & Gas Operators – Fleet of oil & gas platforms

Atkins Oil & Gas Division has been providing structural integrity management services for over 30 years for BP, Shell, Talisman and others to ensure safety, extend life and minimise through-life costs. We use a risk-based approach to inspection and maintenance planning supported by advanced structural analysis tools. An in-house Fleet Management System (FMS) is used for managing large fleet of platforms.

Benefits

New York Subway – Asset Management Strategy, Planning and Roadmap

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Atkins undertook a strategic

review of current practices,

prepared a high level design of

the Asset Management System

and a $250m Implementation

Plan with a Business Case

estimated to deliver $100m

savings each year.

A series of follow-on assignments

have been completed since then

as part of a 5-year Framework

Contract, including an optimised

$26.4B capital plan for 2015-19.

Case Study: Asset Management Transformation

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RTA, Dubai – AM System Implementation

Over a 3-year period Atkins worked with RTA to design, develop, implement and embed asset management practices and culture across six operating business units and supported them in achieving certification to BS PAS 55; the first organisation in the Middle-East.

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PROGRAMME MANAGEMENTPROGRAMME MANAGEMENT

CHANGE MANAGEMENTCHANGE MANAGEMENT

KNOWLEDGE TRANSFERKNOWLEDGE TRANSFER

PHASE 5

CERTIFICATION

PHASE 4

IMPLEMENTATION

PHASE 3

DEVELOPMENT

PHASE 2

ALIGNMENT

PHASE 1

ASSESSMENT

PHASE 5

CERTIFICATION

PHASE 4

IMPLEMENTATION

PHASE 3

DEVELOPMENT

PHASE 2

ALIGNMENT

PHASE 1

ASSESSMENT

AM Strategy

& Plans

AM Organization

& Competencies

AM Processes

AM IT Systems &

Information Mgmt.

1-a1-a

1-b1-b

1-c1-c

1-d1-d

AM Strategy

& Plans

AM Organization

& Competencies

AM Processes

AM IT Systems &

Information Mgmt.

2-a2-a

2-b2-b

2-c2-c

2-d2-d

AM Strategy

& Plans

AM Organization

& Competencies

AM Processes

AM IT Systems &

Information Mgmt.

3-a3-a

3-b3-b

3-c3-c

3-d3-d

AM Strategy

& Plans

AM Organization

& Competencies

AM Processes

AM IT Systems &

Information Mgmt.

4-a4-a

4-b4-b

4-c4-c

4-d4-d

Stabilization

Review

PAS 55 Readiness

Assessment

Support PAS 55

Pre-Certification

Support PAS 55

Certification

5-a5-a

5-b5-b

5-c5-c

5-d5-d

Case Study: Asset Management Planning

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Severn Trent Water – Derwent Valley Water

Atkins supported STW in undertaking NDT surveys, condition assessments, innovative repair/renewal solutions and a risk-prioritised 25-year investment programme to ensure continuity of supply, improve resilience and reduce Totex.

Benefits

digital Enterprise Asset Management (d-EAM)

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Using digital data and technology to reduce costs, control

risks and improve whole life asset performance in

delivering better customer outcomes.

digital-Enterprise Asset Management

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BIM

Coordinated activity for creating and managing data and

information across the life cycle of physical assets; and sharing this

data across organisational boundaries

Digital Technology

Realising value from data and information over the life cycle of physical assets by streamlining processes and developing new

business models linking customers asset owners

operators suppliers

Strategic Asset Management

Realising value from physical assets by optimising their life cycle cost, risk

and performance at an individual asset, asset system and asset

portfolio levelsd-EAM

Life cycle of an asset involves planning, design, construction,

operation, maintenance, renewal and disposal stages

d-EAM outcomes: digitally enabling the

lifecycle management of assets through….

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Asset information and BIM

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● Asset management relies critically on reliable information about assets, their condition, utilisation, performance, capability, cost, risk etc.

● Data needs to be gathered systematically over the whole life of assets and analysed to generate information to support decision making.

● All data needs to be consistent, quality assured and readily accessible.

BIM provides the means for collecting and managing data and information over the life cycle of built assets

Maximizing the value of information

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7D BIM6D BIM5D BIM4D BIM3D BIM

MODEL

DEVELOPMENT

CONSTRUCTION

SCHEDULING

COST

MODELLING

SUSTAINABILITY

MODELLING

ASSET LIFECYCLE

INFORMATION MGMT.

PROJECT LIFECYCLE

Scan BIM AIM

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Laser Scan Conversion Asset Info Model

CAPTURE MODEL ANALYZE

Case Study: Asset integrity management

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M25 Connect Plus - M4 Elevated Sections

Winner of IAM Best Project Award - 2015

A 3-D BIM model was developed using Lidar surveys and used in the planning of strengthening works and future maintenance of these viaduct structures to minimise disruption to road users.

Planning of work through 4D time lining.

Identification of health and safety aspects of the

construction work

Prioritisation of future works, supporting future maintenance

and operations.

The M4 elevated section between junction 1 and 3 contains 126 reinforced concrete piers. These have badly corroded over years and needed strengthening and rehabilitation.

Atkins created a 3-D intelligent Asset Information Model of the structures to record geometry, reinforcement, condition and future asset management data.

The AIM is used in the planning and design of strengthening works and provides useful data and information to the long term asset management planning tools.

Benefits

HS2 – BIM Implementation across the enterprise

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Atkins is providing strategic advice and technical support to develop and implement BIM practices on this £50 billion capital programme to enable £210m capex savings on Phase 1.

Case Study: Asset Information Management

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Network Rail - ORBIS

Atkins is working as strategic partner with EY and CSC on this programme to enable £330m business case benefits over 5 years.

Atkins services include:

● A GIS platform to visualise the UK rail network and access key data

● Business requirements capture

● Benefits modelling & baselining

● Asset management strategies and processes

● Decision support tools

● Safety Cases

● Asset Information Specifications

● Asset Data Enrichment

Network Rail – UK Digital Railways

Atkins is providing business case, enterprise architecture, systems engineering and asset management support for this ~£1bn programme that is designed to transform the UK railways.

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Summary and Conclusions

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➢ Asset management has developed over recent years as an integrating discipline bringing several skills sets together

➢ Asset management offers substantial benefits in terms of whole lifecost savings, improved performance and risk control

➢ Asset management also supports triple-bottom line sustainability and can contribute to UN Sustainable Development Goals

➢ ISO 55000 suite of standards provide an internationally acceptedframework for developing and embedding AM capabilities

➢ ISO 55000 are already published as Indian Standards

➢ Let’s start adopting these standards and international bestpractices and benefit our organisations and the country!

Q&A

Thank you

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For further information contact:

[email protected]

Atkins credentials in Asset Management

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Atkins is internationally recognised as leader in Asset

Management. Atkins has led the development of several

standards, codes of practice and guidance documents.

We have dedicated AM practices in several sectors with a

turnover of over £50m, supported by the SAMNet

technical network.

Why Atkins?

❖ Leadership role in PAS 55 , ISO 55000, ISO 15686-5, BS 8544, NRM, PAS1192-3 and

several codes of practice for asset management and asset valuation

❖ Expertise across several sectors - enables us to draw-upon cross-sector best practice

Aviation Rail Property

Highways Utilities Defence

❖ Endorsed by the Institute of Asset Management

❖ Over 50 consultants with IAM Certificate and Diploma qualifications

❖ Reach-back to internal SAMNet Technical Network which has over 200 asset management

consultants from different industry sectors

❖ Numerous case studies of asset management applications across regulated industry sectors,

including Network Rail, HS2, Heathrow, New York Subway, LUL, Dubai Metro, Thames

Water, Severn Trent Water, etc.

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Atkins is a thought leader in Asset ManagementWe have led or contributed to the development of the following standards

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Atkins is a thought leader in BIMWe have led or contributed to the development of the following standards

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We also play a leading role in the

UK BIM Task Group, BuildingSmart,

BIM Alliance and the development of

ISO 19650 BIM Standards.

Our BSi KitemarkAtkins becomes the first consultancy to achieve

BSi Kitemark for BS PAS 1192-3 BIM

The BS PAS 1192-3 - Specification for information

management for the operational phase of assets

using Building Information Modelling.

Consultancy and managed services for asset data

and information management; and for the

creation and management of an Asset Information

Model using BIM for asset owners, asset managers

or asset operators.