A FUNCTIONAL REFERENCE MODEL FOR ASSET MANAGEMENT

APPLICATIONS BASED ON IEC 61968-1

Per Närman, Magnus Gammelgård and Lars Nordström
Dept. of Industrial Information and Control Systems, Royal Institute of Technology, KTH
pern@ics.kth.se, magnusg@ics.kth.se, larsn@ics.kth.se

ABSTRACT

Distribution utilities that upgrade or implement new asset management applications very
soon arrive at a stage where the business value of different system options needs to be
assessed and compared One obvious, aspect that must be considered in the respective
options is their functional fit, i.e. the degree to which their functionality suits the business
needs of the utility. At the same time it is inherently difficult to objectively measure the
functional fit of a proposed system solution. One way to evaluate the functional fit is to
develop a functional reference model and then compare the functionality of the proposed
system, or systems with the reference model. In order for the reference model to be of any
value it needs to be based on business requirements rather than existing system
functionality and it needs to be complete in the sense that it encompasses all possible
functions in the evaluated functional area.
This paper describes the development of a reference model for asset management
applications in the area of electricity distribution and generation. The functional reference
model is based on an existing functional breakdown presented in the IEC-61968 standard
developed for interapplication integration at electrical utilities. Also incorporated into the
model are functions from various vendors of asset management applications. Having
merged these sources together, the model has been validated by means of an extensive case
study at a large Nordic power company.

INTRODUCTION

This paper describes the development of a functional reference model for asset
management information systems, specifically for electricity distribution networks. In
addition, the work has included input from similar areas within hydropower generation. A
functional reference model is a database detailing what functions are needed for a
functional area within for instance a utility. The reference model created in the study
described herein is based primarily on the IEC 61968-1 standard [1] for inter-application
integration of Distribution Management Systems. Specifically it is based on the Interface
Reference Model (IRM) which forms the basis on which the IEC 61968 standard series are
created. In addition to the IEC-standard, functional breakdowns from asset management
system vendors have been incorporated into the model. The development and refinement of
the functional reference model was concluded with a comprehensive field study at a large
Nordic utility, were the IRM-based reference model was validated. The overall purpose
with the study was to create a reference model, useful for evaluating software packages
from different asset management system vendors. Additionally, as a secondary result, the
study provided validation and ideas for refinement of the IRM.

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Asset management
Asset management is perhaps the core-activity of distribution utilities. Embracing a very
wide definition of asset management as in [2], asset management can be said to involve all
aspects related to the owned assets of an enterprise, including the maintenance, operation
and investments of new assets. In this case, the scope of the functional reference model was
narrowed to exclude the operations-aspect of asset management and to focus on the
planning and execution of maintenance and investment activities.

The deregulation of the electricity markets forces utilities to abandon the old asset
management approach, which was focused solely on reliability, in favour of incorporating
cost-benefit analyses into consideration. This has led to a trend where more and more
sophisticated diagnostic and planning methods are introduced. An example of this is the
introduction of the Reliability Centred Maintenance- strategy at some power companies;
see for example [3] or [4]. It is natural that under these new circumstances a utility will
focus on improving its power system maintenance processes, the goal being to prolong the
life-time of equipment, thereby providing better return on employed capital. Equally
obvious is that the utilities will strive to make their maintenance processes cost efficient
and to a large degree automated so as not to become dependant on single individual
employees. The answer to both these requirements is increased use and integration of
information systems in support of the maintenance processes. For examples of this
development see [5] or [6].

Background of the project: IT Investment analyses

When faced with the decision of which IT-investment scenario to choose, i.e. which system
or systems that should be bought, decision makers have traditionally been given two
options: to pick a solution based on little or no formal analysis, or to first go through the
painstaking requirements engineering process followed by an equally rigorous procurement
process. The former process specified all functional requirements in great detail, and the
latter thoroughly evaluated systems from a few vendors. Thus far, no cheap, easy-to-use
method has been available for strategic management decisions regarding which solution to
buy. To fill the void between having no decision support, and too much decision support,
researchers at KTH have developed the IT Investment Evaluation Method (ITIEM), which
is a method to compare off-the-shelf software systems from different vendors with regard to
the business value the systems provide. The ITIEM-method is intended to be a fast and
low-cost and to be used before, and as a complement to, traditional requirements
engineering methods. The functional reference model was developed as a part of the ITIEM
[7]. The concept of using the IEC standards as a starting point for creating a reference
model is based on previous work reported in [8] and [9].

Scope of the Study

This study encompassed creating a functional reference model appropriate for identifying
functional differences between asset management systems from different vendors for
electrical utilities involved in generation (hydropower) and distribution. The purpose was
not to create an entire functional requirements specification, and consequently the model
describes the systems on rather a high level of abstraction. Furthermore, to limit the scope
of the reference model to be developed, the area of Asset Management was viewed as
maintenance, investment and work management. The reason for narrowing the scope in this
manner was to adjust the model to currently available asset management applications. To

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develop a functional reference model with too wide a functional scope compared to the
systems which will be evaluated serves no purpose.

Contribution of the paper

The paper describes an alternative use of the Interface Reference Model of the IEC 61968-1
standard. In the study, the IRM has been used as a basis for creating a functional reference
model. This functional reference model has then been used in evaluation of asset
management software packages. In addition to providing an example of alternate use of the
61968 standard the study also provides interesting empirical validation of the applicability
of the IRM as such. The paper, combined with the actual functional reference model
(available from the authors) can serve as a starting point for further refinement of the IRM
by adding descriptions to the previously undefined functions of the IRM, as well as more
details added to the IRM.

Outline of the paper

Following this introduction a chapter is devoted to describing standardization within the
framework of IEC’s Technical Committee 57 responsible, among other things for the
development of the standard used in this study. Thereafter follows a description of how the
functional reference model was created, starting with the scoping of the model and the
merging of the model with functions from vendor functional ontologies. The validation of
the functional reference model is described in the chapters to follow. The evaluation criteria
used in the validation are described as well as a brief description of the methods used for
data collection and analysis. The paper is concluded by an overview of the results of the
study; the functional reference model itself.

STANDARD DEVELOPMENT WITHIN THE IEC TC 57

Technical committee 57 (TC 57) of the International Electrotechnical Commission (IEC) is
concerned with issues related to Power Systems Management and Associated Information
Exchange. TC 57 consists of several Working Groups (WG), each responsible for
development of a specific standard addressing a specific issue in power system
communication and control. Much of the work within TC 57 is focused on creating
standards facilitating interoperability of communications and control systems used for
power system control and operation. Interoperable systems are easy to integrate and
integrated systems facilitates the seamless exchange of data across the utility, providing
decision makers with better decision support, as well as improving the efficiency of day-to-
day operations. [13] Here follows a short description of some of the Working Groups
within TC 57 with focus on WG 14 which develops the standard used in when developing
the functional reference model.

Working Group 3 develops a standard, the IEC 60870, standardizing communications

protocols between SCADA-applications and Remote Terminal Units (RTUs). Also part of
the technical committee 57 is WG 10, responsible for the creation of the IEC 61850, aimed
at developing a standard for the architecture and interfaces of substation.. Spin-offs of the
IEC 61850 standard are the standards IEC 62344 and 62350. IEC 62344 developed by WG
18 deal with the communications for hydropower plants and IEC 62350 developed by WG
17 has focused on communication systems related to distributed energy resources, as for
instance distributed heat generation. [17]
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WG 15 is developing the IEC 62351 standards for data and communications security
relevant to all the activities within TC 57. WG 16 develops a standard called IEC 62325,
creating a framework for communications in a deregulated electricity market. Lastly, WG
19 is taking into consideration the long-term interoperability of all the systems considered
by TC 57. [16]

WG 13 and 14 are defining the so called Common Information Model (CIM) [14] At the
core, CIM is essentially a big library of all the data objects that are used by EMS (Energy
Management Systems) which is standardized in 61970-301. This library, or meta-model, is
also being extended to cover DMS (Distribution Management Systems) applications of an
electric utility, this latter work is the responsibility of WG 14. The purpose of having a
common data model is to be able to define standardized application interfaces, thereby
allowing data and services to be exchanged between applications from different vendors.
This approach makes it possible to integrate legacy systems with more Commercial-Off-
The-Shelf (COTS) systems. The integration is done by means of an integration bus which is
connected to the applications with interface adapters, i.e. software translating the data
models used by the applications to the standard-compliant data models as specified by the
CIM. See Figure 1 below. The work within Working Group 13 is focused on the EMS-
applications comprising functionality related to the operation of transmission and
generation systems. EMS includes for instance functions for state estimation, contingency
analyses, real-time SCADA-functionality as well as generation management and functions
for energy trading. The data exchange and integration is mainly focused on the exchange
between system operators. The data objects defining the physical network, loads,
transformers, lines etc., have been defined in the standard IEC 61970-301.

Working Group 14 has focused their attention on the development of a standard series, IEC
61968, for DMS-application integration within a utility or system operator. Distribution
management is less focused on the real-time calculations considered important in EMS, and
more emphasis is put on everyday operations where the complexity lie in the sheer number
of activities that needs to be managed, rather than the activities being complex in
themselves. Examples include network planning outage management, customer relations,
asset management etc. [1]

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 Business Functions
Distribution Management
External To Distribution
Business Functions
Management
(AM) (OP) (MC) (EMS) (SC)
(NO)
Records & Operational Maintenance Energy (RET) Supply
Network
Asset Planning & & Management & Retail Chain and
Operation
Management Optimization Construction Energy Trading Logistics

Interface Interface Interface Interface Interface Interface Interface

Standard: Part 3 Standard: Part 4 Standard: Part 5 Standard: Part 6 Standard: Part 10 Standard: Part 10 Standard: Part 10

IEC 61968 Compliant Middleware Services

Interface Interface Interface Interface Interface Interface Interface

Standard: Part 7 Standard: Part 8 Standard: Part 9 Standard: Part 10 Standard: Part 10 Standard: Part 10 Standard: Part 10

(NE) (MR) (ACT)

(CS) (HR)
Network Meter Customer (FIN) (PRM)
Customer Human
Extension Reading & Account Financial Premises
Support Resources
Planning Control Management

Electric Distribution Network Generation and Transmission Management,

Planning, Constructing, Enterprise Resource Planning, Supply Chain, and
Maintaining, and Operating General Corporate Services

Figure 1: Enterprise Application Integration using the IEC 61968 standard. Separated
applications are integrated by a standard compliant middleware, and application interfaces
convert the data of the applications to data models compliant with CIM. The boxes are the
business functions that according to the IEC WG 14 constitute the area of DMS.[1]

IEC 61968 – the Interface Reference Model

The output from WG 13 and 14 is similar in the respect that they both produce standardized
meta-models. The angle of attack when creating these data models differs in the respect that
WG 14 has chosen to define all possible ways to utilize IT-systems for distribution
management in their so called Interface Reference Model (IRM), which defines the
functional scope of DMS. The data objects defined in the IEC 61968 are based on the
functions specified in the IRM. The content of the Interface Reference Model is divided
into 14 Business Functions. A business function roughly comprises the activities or
functions, normally performed within a specific organizational unit at a power company.
The business functions are broken down into smaller entities called business sub-functions,
and these in turn contain smaller components, called abstract components. The business
functions of the IEC 61968-1 are shown in Figure 1 above. The internal structure of the
IRM with its three levels is shown in Figure 2 below.

Figure 2: The structure of the Interface Reference Model of the IEC 61968 standard contains
three levels; business function, business sub-function and abstract component level. [1]

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Initially it was assumed that asset management applications for power distribution is a
subset of DMS, and that asset management applications for power generation, functionally
speaking, is a subset of those for power distribution. Hence it was deemed appropriate to
use the IRM, or at least a subset of it, as starting point in the development of the functional
reference model. The scoping of this subset is described in the next chapter.

SCOPING OF THE FUNCTIONAL REFERENCE MODEL

The scoping was made together with professionals from a large Nordic utility,
knowledgeable in the area of asset management in power distribution and generation. The
remaining business functions are shown in Figure 3 below. The business functions still
present are
• Maintenance and Construction,
• Records and Asset Management,
• Operational Planning and Optimization,
• Customer Support, Supply Chain and Logistics,
• Premises.
The last three business functions were included as they contain functions that are at least
related to asset management issues. Customer support for instance is an important aspect in
asset management, as often the only way to monitor the status of a distribution network is
through customer contacts, it is therefore important that customer support applications are
integrated with the maintenance process.

Figure 3: A demarcation of DMS was made in order to extract business functions relevant to
asset management. The striped boxes were excluded from the functional reference model.

In the IEC-standard, the functions in the IRM are not described, apart from their names, and
this lack of descriptions gives room for a wide range of interpretations of what the functions
actually mean. To overcome this, every component on the abstract component-level was
given descriptions which were refined later during the field study.

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VENDOR ONTOLOGIES
The functions selected from the IRM were augmented with functions contained in vendor
ontologies. This to ensure that the rapid development in the area of asset management
applications however, did not render the IRM obsolete; there could be vendors offering
applications not present in the IRM.

Material from three vendors were used, viz. SAP, Oracle and Powel. Powel is a small
vendor of a Network Information Systems (NIS) called NetBas, i.e. GIS-systems with the
ability to display the electrical network in the terrain. Oracle is, among other things, a big
supplier of Asset management applications [11], as is SAP. [12]. The total list of vendor
functions included about 600 functions. These were then merged with the IRM to extend
the IRM both in depth and width. See Figure 4 below.
IEC-functions (row)
Business Maintenance
function &
Construction

Business Maintenance
Sub- & Inspection
function

Functions fr. Vendors Abstract

Com-
ponent
Maintenance
Program
Management
Manage
Inspection
Readings
Asset
Failure
History
Work
order
Status
Work
Order
Closing

(Column) Tracking

Process Processteg
Equivalent are placed below
abstract components
Maintenance Phase-in Equipment

Phase-out

Vendor-specific are added on

Equipment

Inspection Determine optimum

route of inspection

Collect Inspection
Readings
abstract component level
Field Communication

Figure 4: the merging of functions from vendors, with those of the IRM. Vendor functions to
the left, IRM on top.

The extension in depth added a fourth level to the model. See Figure 5. This level is called
the “measurement point”-level”, the functions in this level are used to measure the
functional fulfillment of the investigated asset management application.
Field Recording
Business Function level & Design

Business Sub-Function Maintenance & Work Field

Level Construction & Work Dispatch
Inspection Scheduling Recording & Added function on the
Design (CON) (DSP)
(MAI) (SCHD) Design (FRD) abstract component level

Field
Abstract Component Level Crew Time Actual Actual
Field Design Inspection
Entry Materials Equipment
Results

Importing work
Function to display
order feedback
an electronic
from field crews
checklist of the
(results,
agreed delivery
comments) Examples of added
Function to measurment points to Function to
display data from abstract components connect the
asset repository in "delivered"-status
the field, either by of the material to
being online or by payment of the
storing it. delivery

Figure 5: A fourth level was added to the original three of the IRM. Functional names are
exemplary.

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VALIDATION & REFINEMENT

The steps of scoping and merging the IRM with vendor functions proved insufficient if the
model was to be of any use. The model needed to be validated and refined, and this was
accomplished by means of a field study. To accommodate the functional differences
between generation and distribution asset management, two separate models were created.
The generation functional reference model contained, as mentioned above, a subset of the
functions present in the distribution model.

Method of validation
The method of validation considered three aspects; the data sources needed for validation of
different parts of the model; the evaluation criteria for the model and the analysis of the
answers provided during validation.

The evaluation criteria

An effort was made to operationalize the concept of “validation” by defining four criteria;
viz. correctness, completeness, granularity and measurability.
• Correctness means that the model accurately describes the functions in the model.
“Accurate” in this context means that the definitions given in the model are roughly
the lexical definitions, i.e. they correspond to the common usages of the terms by
industry professionals.
• Completeness means that the model spans the subject matter. A complete model
describes what it is intended to describe, encompassing the relevant information and
contains all vital parts in the description.
• Granularity means the level of detail in the model. Level of detail refers to how
deep the description of an asset management application is.
• Measurability is the ability to use the functional reference model to conduct a
measurement of functional fulfillment of an information system.

A framework for choosing experts for interviews

A framework was developed for classifying experts with regard to three dimensions;
relation to the evaluated information systems; nature of knowledge and level of detail of
knowledge. See Figure 6 below.

Depending on the relation to the application the expert might have, the perspective, and
therefore the answers, differs. An expert involved in developing a new application has a
different perspective compared to that of a user of the same application or the consultants in
charge of implementing the application at the users company. The relation dimension is
therefore classified into three categories, supplier, user and implementer.

The experts might have very different nature of knowledge, i.e. different areas of expertise.
For the purpose of this validation, a very coarse categorization was made were experts were
said to have knowledge in either the IT-domain, or the business-domain (i.e. the running of
a power company) or a mix of both.

8
The level of detail of knowledge was divided into categories suitable for the investigated
organization. In this case the level of detail was broken down into four different levels;
enterprise, business unit, process manager and process performer.
Detail of knowledge

Enterprise levell

Business unit level

Process manager

Process performer
U
se
r(
U
til

Nature of knowledge
ity

Im
)

(c ple
on m
Both IT and Business knowledge
Primarily IT-knowledge

Primarily business knowledge

su en
lta te
nt r
)
Re

Su
lat

pp
io
n

lie
r(
ve
nd
or
)

Figure 6: The three dimensions used to categorize the type of knowledge required in the
validation process. The vertical axis is granularity of knowledge, the horizontal IT/business;
the third axis separates user/supplier/implementer.

The validation process was broken down into four separate phases, which differed
somewhat with respect to the criteria investigated, the level of detail in the model that was
validated, and the type of experts that were needed. Depending on criteria investigated, and
part of the model investigated, the experts were then mapped to the framework and showed
to the contact persons at the investigated power company, who were then able to select the
most appropriate expert to interview. See Figure 7 for an overview of this entire process.

Type of validation Classification of expert Organization

Gives a Is matched with

Gives

Figure 7: The processes of finding experts began by considering which type of validation was
needed, followed by the categorizing of the needed expert according to the framework
presented above, and given the expert-category find a suitable expert in the organization.

9
Data collection
Having chosen experts to interview in total 20 interviews and workshops were carried out.
During these sessions a number of suggestions of changes in the original IEC-based model
were made. The majority of these suggestions consisted of additions of more measurement
points, i.e. the fourth and lowest level of the functional reference model. Some of changes
were also suggested concerning additions or exclusion of functions primarily at the abstract
component level.

Analysis of suggested changes

All data was recorded in a database and all suggested changes to the original model were
analyzed according to how well they fit to the rest of the model. In total 25 major changes
were made to the original model, as well as a large number of smaller changes involving
primarily the adding or excluding of measurement points.

RESULTS: A FUNCTIONAL REFERENCE MODEL

Due to space-constraints, the functional reference model cannot be presented in its entirety
here. As was noted above two separate models were developed, one for generation and one
for distribution. The generation model is smaller and does not contain functions related to
the business sub-functions Trouble Call Management and Work Dispatch. It also lacked
some abstract components present in other parts of the distribution model, but was
otherwise almost identical. This paper will not dwell further on these differences, but will
focus instead on the functional reference model for distribution. See Figure 8 below.

Figure 8: The business functions and business sub-functions of the functional reference
model.

Going through the business functions and business sub-functions presented in Figure 8
above from left to right, we start with the business function entitled External to DMS. This
business function contains functions exclusively utilized in DMS-applications but of a
general, less business-domain specific nature. Three business sub-functions from this
business function were included in the model. These are the Supply Chain and logistics
sub-function dealing with supply of among other things spare parts and containing
functions to manage warehouses and materials, the Premises sub-function dealing with
some aspects of customer and company-owned property issues and the Document
Management business sub-function dealing with distributing and modifying business
critical documents of various kinds.
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The Records and Asset Management business function is, together with Maintenance and
Construction (see below) one of the most important for asset management. There are three
business sub- functions within it. The first is Substation and Network Inventory which
contains functions for storing and displaying relevant data from the asset repository
database. The Geographical Inventory business sub-function contains functions for
displaying the electrical network on geographical maps. The Asset Investment Planning
sub-function contains functions necessary for doing long-term planning of investment in
new assets. This includes doing LCC-analyses and some measure of network calculations.

The Maintenance and Construction business function contains five business sub-
functions. The Maintenance and Inspection sub-function contains functions for the
efficient execution of the routine preventive and corrective maintenance and inspection
activities performed at an electric utility. The Construction and Design sub-function deals
with the issues related to building various kinds of facilities, primarily the work-related
issues. Work Scheduling is a sub-function used for detailed planning of work activities.
Field Recording and Design is a sub-function dealing with providing field crews with
applications that are designed for out-of-office use. This entails real-time communications,
the ability to access the asset repository from a remote location and so on. Work Dispatch
is a business sub-function intended for centralized supervision of dispatched field crews.

The business function Customer Support with its only sub-function Trouble Call
Management was included in the functional reference model, as the contact with
customers has some bearing on maintenance activities. Especially the corrective
maintenance associated with customer outages. The present lack of sensors in low-voltage
distribution networks makes customer reports critical for assessments of network status,
and consequently provides maintenance planners with relevant information.
The last business function Operational Planning and Optimization and its sub-function
Switch Action Scheduling/Work Scheduling, contains functions for the co-ordination of
the de-energization of electrical equipment and planned maintenance activities.

CONCLUSIONS
The study shows that the IEC 61968 standard for inter-application integration can be used
as a foundation for a functional definition of the area of asset management. In this study,
the IRM has been validated, and refined and then used to evaluate asset management
software packages. Additionally, the study has provided valuable input to extensions of
modifications of the IRM as such.

The benefits of using the standard are, besides it being highly credible, are that it is
politically unbiased and that it represents cutting-edge knowledge of current and future
developments within Distribution Management Systems. All of these conclusions were
verified empirically in the research leading up to this paper. The empirical data was quite
extensive involving input from 20 experts in the field, and the quality of the data is
reasonably high which is guaranteed by the meticulous methods employed in the validation
process.

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REFERENCES
[1] International Electrotechnical Commission, “IEC 61968-1 Application integration at electric utilities – System Interfaces for
distribution management Part 1: Interface Architecture and General Requirements”, IEC Reference number IEC 61968-1:2003(E).
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In IEEE Power & Energy Magazine May/June 2005.
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Maintenance in Power Distribution Systems” IEEE Transactions on Power Systems, Vol. 20, No. 1, February 2005.
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[11] Oracle White Paper, Oracle Enterprise Asset Management 11i, 2005
[12] SAP AG, “Industry-Specific SAP Business Maps – Utility”. http://www.sap.com/industries/utilities/businessmaps.epx, April 2006.
[13] Becker, D. et al., “Standards-Based Approach Integrates Utilities Applications”, Computer Applications in Power, IEEE, October 2000
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