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 an
integrated asset management system
Karsten Hauschild
SAP Labs
Kim McArthur, Hydro One
Networks Inc.
Real Experience. Real Advantage.
[
2
Learning Points
PAS 55 Good asset management practices
Hydro One - Utilizing SAP solutions for achieving good asset
management practices
SAP solutions to support PAS 55
[ About Hydro One Networks Inc.
Transmission
Ontario Coverage 97%
52 Large Utilities
113 Large Direct Customers
26 USA/Canada Interconnections
Assets (500/230/115 KV)
Overhead - 28,600 ckt-km ;
Underground cables - 272 ckt-km
Stations - 275
Distribution
Ontario Coverage - 75%
40 Small (embedded) Utilities
Assets (44/ 27.6/ 13.8/ 8/ 4 kv)
Overhead - 123,000 ckt-km
MV Stations: 1035;
LV Transformers 520,000
Urban load customers 280,000 (Brampton)
Non-urban load customers - 1.2 million
Assets - $12.0 billion
Revenue - $4.7 billion
Territory 647,000 sq. km
Employees 4300
Peak Demand 27,000 MW
[ 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
[ Our SAP Footprint
Value realized in:
Planning & Scheduling
Supply Chain
HR
Asset Analytics
Time Reporting
Application Rationalization
$200M of benefits
[ A New Perspective
With the assistance of a
specification from the British
Standards Institution (BSI) and the
Institute of Asset Management
(IAM)
Publicly Available Specification
(PAS) 55
Asset Management
Note: Currently being used as a basis for an
ISO standard for Asset Management
[ Publicly Available Specification (PAS) 55
A specification developed by BSI / IAM
BSI PAS 55:2008 is:
the international reference standard for
the optimal management of physical
assets providing the definition of good
practice in the whole-life management of
assets.
It is applicable to any organization where
physical assets are a key or a critical
factor in achieving its business goals.
It has 28 areas: of optimized
management or good practice
[
28 Areas of good
practice
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 Improvement
Paradigm
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 Performance
3. Revenue Generation
4. Risk Mitigation
5. 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 Initiatives
Incorporated
$200M
PAS 55 topics
Additional Value
Missed
Opportunities
Additional Value
Missed
Opportunities
[ Finding Value Opportunities
What we found.cultural deficiencies
With regards to
Compliance with processes, communication & record keeping
Transparency of corporate strategies throughout the company
Availability 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 information
Reliability Centred Maintenance
Root Cause Analysis on the individual Bad Performers
[ In Summary .
SAP delivered the proposed value but
Due to the health of our Asset Stewardship System, we didnt realize
our 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 additional
value!
[ Key points to take away
With your EAM System
Ensure that information is consistent
across all information systems
Provide information access to all
employees and stake holders including
contract services providers (Line of Sight)
Identify key asset management
information considering all parts of the
life cycle
With your System of Asset Stewardship
Communication
Consistent Infrastructure / Processes
Recording / 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
How
by systematic and coordinated activities and
practices
through which an organization optimally and
sustainably 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 is
derived from, and embodies its
Vision, mission, values
Business policies, stakeholder requirements, objectives
and
Management of risks
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Asset Management and Business Context*
* As defined in PAS 55
Physical
Assets
Information
Assets
Human
Assets
Financial
Assets
Intangibles
Assets
Important interface:
motivation,
communication, roles and
responsibilities,
knowledge,
experience, leadership,
teamwork
Important interface: life cycle
costs, capital investment criteria,
operating costs, value of asset
performance
Important
interface:
condition,
performance,
activities, costs
and opportunities
Important interface:
reputation,
image, morale, constraints,
social impact
Vital context: business
objectives, policies, regulation,
performance requirements, risk
management
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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 order
delays
Inflated spares inventory
Obsolete parts
Wasted Time and Resources
Cant forecast output because of
poor reliability
High maintenance & operating costs
drag returns
Higher capital investment
Low Return on Assets
Inefficient supplier selection and
bidding 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, excessive
equipment 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 corporate
sustainability goals
Eroding
Customer
Trust
Poor
Decisions
Lack of
Customer
Confidence
Cost
Pressure
Operations in
Uncertainty
Unexpected
Opportunities
Requiring COO/Plant Manager to:
Maximize uptime: assets available when needed;
move from reactive to predictive maintenance; extend
productive lifetime of assets
Keep assets profitable: control and reduce
maintenance spend; effectively manage contractors;
identify and disseminate best practice
Improve EH&S performance:
Proactive health and safety
management, monitor and
reduce emissions, reduce energy
consumption
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PAS 55 Context: SAP Solutions
SAP Enterprise Asset Management for reducing operating
costs, better manage capital expenditures, and improve asset
utilization from installation to maintenance, repair, and
decommission.
ERP Financials for financial reporting, planning, budgeting,
controlling
ERP Human Capital Management for optimizing HR related
business 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 operational
risk management to proactively manage risks across business
processes
Employee Health & Safety application to ensure compliance with
regulations for product safety, hazardous substances, dangerous
goods, and waste management
Business intelligence solutions to quickly search and explore data
and 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.
Physical
Assets
Information
Assets
Human
Assets
Financial
Assets
Intangibles
Assets
SAP supports organizations to efficiently and sustainably manage the whole lifecycle of physical assets
in terms of performance, risks, and expenditures to achieve and maintain the stated business
objectives:
Integrated end-to-end processes
Easily deployable in modular implementable steps
Leveraging the SAP Business Suite and other parts of the SAP portfolio
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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 goals
Help companies improve performance and align execution with
strategy by connecting goals, initiatives and metrics
Prioritize Initiatives based on Strategy
Focus on the initiatives that will have most impact and
allocate resources appropriately
Cascade strategy across the enterprise
Ensure individuals understand how they can impact strategic goals and
how they impact others; accountability and exception management
Monitor results
Show how an organization is performing towards their strategic goals
Measure performance
Quickly assess strategic performance and execute on areas that require
action
SAP BusinessObjects Strategy Management
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Gain visibility and control - align objectives, monitor and
analyze 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 in
core operations to improve compliance, productivity, and
operational continuity
Maximize asset productivity
optimize maintenance to improve asset
reliability 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 management
policy. 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
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PAS 55 Chapter 4.4: Asset Management Enablers and
Controls
This chapter addresses the roles, responsibilities and authorities to execute upon
strategies and objectives on a more operational level. It deals also with asset related
risks and outsourcing certain aspects of asset management activities, information
management as a system that tracks the lifecycle of an asset, and legal, regulatory,
statutory and other applicable asset management requirements.
Planning, Building, and
Commissioning Assets
Asset Visibility
and Performance
Operational Risk Management
Optimized Asset
Operations and Maintenance
Real Estate Lifecycle Management
Plan &
Design
Procure
& Build
Com-
mission
Operate Maintain
Decom-
mission
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PAS 55 Chapter 4.5: Implementation of Asset
Management Plans
The organization shall establish, implement and maintain process(es) and/or
procedure(s) for the implementation of its asset management plan(s) and control of
activities across the whole life cycle. Furthermore it is noted that The organization
shall ensure that tools, facilities and equipment are maintained and, where appropriate,
calibrated. The organization shall establish and maintain process(es) and procedure(s) to
control these maintenance and calibration activities, where such tools, facilities and
equipment are essential for.
SAP Enterprise Asset Management (SAP EAM) acts as the
central asset registry and information hub when it comes to track
and control all maintenance activities
The SAP solutions for document management and
content management support this requirement in its most
basic and effective fashion
The SAP Solution Manager supports you
throughout the entire life-cycle of an SAP
implementation, from the Business Blueprint to
the configuration to managing the test and
production system.
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PAS 55 Chapter 4.6: Performance Assessment and
Improvement
This chapter addresses requirements around performance and condition monitoring,
investigation of asset-related failures, evaluation of compliance, auditing of an asset
management system, improvement actions, and record keeping.
SAP Enterprise Asset Management (SAP EAM) acts as the
system of record for the handling and investigation of failures and
incidents of assets and asset systems
Partner solution: Meridium RCMO (Reliability Centered
Maintenance and Optimization),
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Operational Risk Management Solution Portfolio
D
a
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a

I
n
t
e
g
r
a
t
i
o
n
B
u
s
i
n
e
s
s
P
r
o
c
e
s
s

I
n
t
e
g
r
a
t
i
o
n

Visibility and
Performance
Management
Business
Analytics
Performance
Management
Stakeholder
Reporting
Audit
Management
Risk Management
Risk Planning
and Portfolio
Management
Risk
Identification
and
Assessment
Corrective &
Preventive
Actions
Risk
Controls and
Monitoring
Environment,
Health & Safety
Management
Occupational
Health and
Safety
Incident
Management
Process Safety
Environmental
Compliance
Asset Reliability and
Safety
Maintenance
and Work
Order
Management
Reliability-
Centered
Maintenance
Work
Clearance
Management
MobileAsset
Management
Training, Action Management, SOPs, Hazard Communication, Document Management
Workflow enabled business process and action management with
pre-built integration across core business operations
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PAS 55 Chapter 4.6: Performance Assessment and
Improvement
Asset Management
Risk Management
Historians,
Control
Systems
Production
Plant
Maintenance
Transpor
-tation
SCM Facilities Finance
Corrective
Actions and
Controls
Risk Portfolio
Management
Risk
Identification
and Assessment
Maintenance
and Work
Order
Management
Reliability
Centered
Maintenance
Work Clearance
Management
EHS Management
Environmental
Compliance
Industrial
Hygiene and
Safety
Hazard
Communication
Operational
Visibility
Carbon Footprint Risks by Geography
Initiatives KPIs
Closed Loop Management System
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PAS 55Chapter 4.6: Performance Assessment and
Improvement
Best Practice for Continuous
Improvement Approach
People Safety &
Incident Management
Continuous, Pervasive
Assessment of Risk
Environmental
Impact
Asset Reliability
Continuous
Monitoring &
Improvement
High Performance
Reporting
Auditing
Corrective Actions
PLAN
CHECK
DO
ACT
Corp. HQ Strategy and
Risk Appetite
[
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PAS 55Chapter 4.6: Performance Assessment and
Improvement
Continuous, Pervasive
Assessment of Risk
Environmental
Impact
Corp. HQ Strategy
and Risk Appetite
Asset Reliability
Continuous
Monitoring &
Improvement
High Performance
Reporting
Auditing
Corrective Actions
PLAN
CHECK
DO
ACT
SAP Enterprise Asset
Management
SAP ERP:
Audit Management
SAP BusinessObjects:
Business Intelligence
SAP EHS
Management ,
Environmental
Compliance
SAP EHS
SAP BusinessObjects Risk
Management;
SAP EHS Management
Enterprise Information
Management
Enterprise Performance Mgmt; SAP
BusinessObjects Risk Management
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Example: Solution Reduces Losses at the Plant, Shares
Best Practices and Increases Visibility
Deployed at 17 Refineries, integrating:
4 distinct process historians
Dozens of disparate legacy systems and
databases
Proprietary technologies
Highly detailed and inconsistent data
Distributed IT infrastructure
Plant reporting
Executive Operations Center:
Enables plant performance visibility
Establishes best practice metrics
and greater collaboration
Shares safety, performance and
innovation across operations
Enhances compliance assurance
and equipment availability
Performance Metrics:
Volume throughput / yield
Inventory / Spares utilization
Process safety management
Environmental performance
Energy management
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Example: Pemex Gas Ensures Visibility to Production,
Maintenance and Compliance with SAP
Challenges
Lack visibility to gas production and
operations data
Inability to ensure compliance for
operations
Lack ability to align work orders with
field maintenance servicing
Objectives
Gain access and flexibility for
examining gas production operations
Ability to examine production,
environmental, health, safety,
compliance or maintenance data in
single dashboard
Implementation Highlights
Deployed solution across 10 gas
complexes and 71 processing units in
4 months
Integrated mobility solutions; enabling
workers to receive alerts via PDAs
and cell phones
Why SAP?
Support for end-to-end planning and
execution processes
Extension of Pemexs success with
SAP
solutions
SAP offered broadest solution for
EH&S compliance, visibility and
mobility
Leveraging of ongoing R&D
investment by SAP
Benefits
Greater visibility to production
operations, compliance and
maintenance across corporation
Reduced time to return-on-
investment due to quick
implementation
Greater receptivity and interest
from production workers on
mobility and automation solutions
We needed greater visibility to our gas production
and operations, as well as compliance status.
Implementing these solutions enabled us to achieve
our goals and create a foundation from which to
expand in the future.
Gabriela Torres Ramirez, Deputy Director of Planning
Pemex Gas and Basic Petrochemicals
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PAS 55 Chapter 4.7: Management Review
In order to review in appropriate interval an organizations asset management top
management needs records or reports on the asset management performance of the
organization.
SAP offers a wide spectrum of business intelligence solutions where
executive can gain meaningful, industry-specific, role-based insight
into their business performance. Self-service business intelligence
tools 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 Risk
Management
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Delivering Optimized Management of Physical Assets
Measure, monitor and reduce
emissions
Monitor compliance with
allowance limits
Trigger maintenance directly
from emissions monitoring
Control and Reduce Emissions
Measure and monitor energy
consumption
Identify biggest enery consumers
Enhance maintenance strategy to
max uptime and min energy
consumption
Reduce Energy Cost
Analyze Health & Safety
performance
Incident reporting as basis for
spotting problem areas
Implement safeguarding actions
Enforce safe working practices
Health and Safety
Enforce best practice streamlined
maintenance procedures
Effective sourcing of services with
defined service structures
Efficient management and sign-off of
service contractors
Reduce OPEX Implement life prolonging maintenance
strategies to avoid asset replacement
Focus maintenance activities to safeguard
availability of critical assets
Avoid asset failure through focused
inspections 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 with
production needs
Increase Operational
Effectiveness
Streamlined maintenance processes integrated with the rest of the business
enable efficient and sustainable enterprise asset management.
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Key Learnings
PAS 55 is quickly becoming the recognized standard for a
modern, integrated and optimized asset management practice.
PAS 55 is a continuous journey: Good asset management is
first of all a business approach and includes change
management to achieve continuous improvements along the
way.
PAS 55 isnt a certification of software applications
PAS 55 brings up the need for a holistic, cross-department and
integrated enterprise asset management solution.
SAP solutions act as the business process platform enabling
good asset management practices.
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Thank you for participating.
SESSION CODE:
2611
Please remember to complete and return your
evaluation form following this session.
For ongoing education in this area of focus, visit www.asug.com.

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