kbc ioe webinar - iso 55000 - asset management
TRANSCRIPT
© 2015 KBC Advanced Technologies plc. All Rights Reserved.
ISO 55000 – Asset Management A Partnership Strategy for Operational Excellence
KBC Webinar 18 September 2015
Our Speaker Today
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Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to the organisation > How KBC can help companies achieve
certification?
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KBC Corporate Profile Leading Independent Oil and Gas Consulting and Technology Company
KBC Office Locations
People
Methodologies
Technology and Tools
Our Advantage
Traditional Industry Focus
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Global Client Base
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Aramco Asia, China Bangchak Refinery, Thailand Binh Son Refinery, Vietnam BP, Australia Caltex, Australia CNOOC, China Cosmo Oil, Japan Formosa Petrochem, Taiwan FREP, China Fuji Oil, Japan Hindustan Petroleum Corp. Ltd, India Idemitsu Kosan, Japan Indian Oil Corporation, India InterOil, PNG IRPC, Thailand JX Nippon Oil & Energy, Japan Mitsui & Co, Japan Pertamina, Indonesia PetroChina, China Petron, Malaysia and Philippines Petronas, Malaysia PTT, Thailand PTTES, Thailand PTTGC, Thailand Samsung Total, Korea Santos, Australia Siam Cement Group, Thailand Sinopec, China SK Corporation, Korea S-Oil, Korea SPRC, Thailand Singapore Refining Co, Singapore Sumitomo Chemical, Japan Thaioil, Thailand TonenGeneral, Japan
ADM , Europe BP- Nerefco, Netherlands ConocoPhillips, UK Engen, South Africa Essar Oil , UK GALP, Portugal Grupa Lotos, Poland Hellenic Petroleum, Greece Holborn Europa Raffinerie GmbH, Germany INA, Croatia Koch, Netherlands KPRL, Kenya Kuwait Europort, Netherlands Murphy Oil Corporation, UK Oil Planning Service, Africa Oman Oil RPI, Oman OMV Aktiengesellschaft, Austria PCK, Germany Petrogal, Portugal PetroPlus, France PetroSA, South Africa PKN Orlen, Germany Raffineria di Milazzo, Italy Rompetrol, Romania Sasol Synfuels Ltd, South Africa Slovneft, Russia Total, France Tupras, Turkey Vitol, UK
Alon, USA Ancap, Uruguay BP, USA Coastal , USA ConocoPhillips, USA Ecopetrol (Reficar), Colombia El Paso, Aruba ENAP, USA Flint Hills Resources LP, USA Hess Oil Trading Company, USA Hovensa, St Croix Husky Energy, Canada Irving Oil, Canada Lyondell-Bassel, USA Lyondell-Citgo, USA Marathon, USA Mobil, USA National Oil Company, South America NCRA, USA Nova Chemicals Corporation, Canada Parkland Income Fund , Canada Pemex, Mexico Petrobras, Brazil Petro-Canada, Canada Petroecuador, Ecuador Refining Process Services, USA Rio Tinto, Americas Sinclair, USA Suncor, Canada Tesoro Refining & Marketing Co, USA Texaco, UK
PROPRIETARY INFORMATION
Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to the organisation > How KBC can help companies achieve
certification?
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ISO 55000 is Focused on Asset Management…
Asset management (value adding focus) 1. Realise value throughout the asset’s life cycle stages 2. Coordinated asset-related decisions, plans, and activities 3. Risk based approach
Asset management system 1. Set of interdependent elements of an organisation 2. Establishes asset management policy and objectives 3. Processes for the development, coordination, and control of asset
activities over different life cycle stages 4. Aligned with the strategic goals of the organisation (organisational
behaviour focus)
ISO 55000 Asset Management Standard To provide a framework that specifies and links life-cycle asset
decision making and actions to the strategic goals of the business.
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..but looks beyond the physical asset
1. Asset management does not focus on the asset itself, but on the value that the asset provides to the organisation
2. Value can be tangible or intangible, financial or non-financial
3. At no point does ISO 55000 mandate the most reliable assets or the greatest level of production
Source: ISO 55000 It’s All About the Value Asset management system framework
Managing the Organisation
Asset Management
Asset Management
System
Asset Portfolio
Coordinated activity of an organisation to realise
value from assets
Set of interrelated or interacting elements to
establish asset management policy, asset management objectives
and processes to achieve those objectives
Assets that are within the scope of the asset
management system
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ISO 55000
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Asset Management Overview Defines principles and terminology of an asset management system
Asset Management System - Requirements Describes the elements of an asset management system
Asset Management System - Application Provides “guidelines” for the design and operation of an asset management system
ISO 55000
ISO 55001
ISO 55002
Content of Standard > Context of the organisation: Understanding the
organisation, stakeholders and scope of the AMS
> Leadership: Demonstration of leadership and commitment
> Planning: Actions to address risk and opportunities for AMS
> Support: Resources, competence, communication
> Operation: Operational planning and control, MOC, outsourcing
> Performance Evaluation: Monitoring, measurement, analysis and evaluation (audits and reviews)
> Improvement: Non-conformity and corrective action, preventive action and continual improvement
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ISO 55000 was launched in Jan/2014
2004 2010 2012 2014
1. UK Institute of Asset Management with British standards Institution developed PAS 55
2. First public specification for optimised management of physical assets
2008
3. PAS 55 updated
4. Developed by 50 organisations from 15 industry sectors in 10 countries
6. ISO 55000 formally launched
5. International Standards Organisation (ISO) accepts PAS 55 as the basis for development of the ISO 55000 series of international standards
Evolution of the development of ISO 55000
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Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to the organisation > How KBC can help companies achieve
certification?
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Drivers for Improved Asset Management
Fukushima Nuclear Accident
Event > Occurred on 11 March 2011 > Consequence: Nuclear meltdown of 3 out of 6
nuclear reactors > No fatalities but 300,000 people evacuated > Trigger events: magnitude 9.0 earthquake and
tsunami
Asset Management Findings > Plant was incapable of withstanding earthquake and
tsunami > It failed to meet the most basic safety requirements,
such as assessing the probability of damage, preparing for containing collateral damage from such a disaster, and developing evacuation plans
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Drivers for Improved Asset Management - cont’d
Deepwater Horizon Oil Spill
Event > Occurred on 20 April 2010 > Explosion and sinking of the Deepwater Horizon
oil rig in the Gulf of Mexico > 11 people were never found > A sea-floor oil gusher flowed for 87 days totaling
about 4.9 million barrels of crude oil > Fines = $4.5B; Criminal & civil settlements
>$42.2B plus massive environmental impact
Asset Management Findings > Defective cement on the well causing wellhead blowout > Series of cost-cutting decision and an insufficient
safety system
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Texas City Refinery Explosion
Event > Occurred March 23, 2005 > HC cloud explosion at the Isomerisation Process
Unit > Killed 15 workers; 170 injured
Asset Management Findings > HC originated from liquid overflow from the blowdown
stack after overfilling and overheating of the tower contents.
> Numerous technical and organisational failures at the refinery and within corporate BP
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Drivers for Improved Asset Management - cont’d
Lac-Megantic Derailment
Event > Occurred on July 6, 2013 > An unattended 74-car freight train carrying crude
oil rolled down a hill and derailed > Result: file and explosion of multiple tank cars > 47 people died; more than 30 buildings
destroyed
Asset Management Findings > Identified 18 distinct causes and contributing factors,
some are: − Mechanical problems not remedied − Independent air brakes leaked − Insufficient handbrake and improper test method − Train left unattended on hill − Weak safety culture
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Drivers for Improved Asset Management - cont’d
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Sayano-Shushenskaya
Event > Occurred on 17 August 2009 > Capacity 6,400MW > Flooding of the engine & turbine rooms and two
711 MVA electric generators exploded > 76 people died > Equipment damage cost alone = $1.2B > Economic impact to Siberia
Asset Management Findings > Postponed turbine maintenance while waiting for
funding > Primarily caused by vibrations of turbine No. 2 which
led to fatigue damage of the turbine mountings > The design life of the Unit 2 turbine was reported as 30
years by the manufacturer. On the date of the accident, the age of the Unit 2 turbine was 29 years and 10 months
PROPRIETARY INFORMATION
Drivers for Improved Asset Management - cont’d
Drivers of ISO 55000 adoption
> Growing awareness of reputation risk due to prior major asset integrity failures
> Opportunity to assess and enhance existing AMS > Public domain discussion suggests three further drivers of adoption
− Regulatory agencies leveraging the standard for compliance purposes
− Insurance risk / premium assessment − Interest by law firms given implications for M&A due diligence or
legal liability
Besides the business… Regulators, insurance and M&A-DD are other drivers for ISO 55000
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Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to the organisation > How KBC can help companies achieve
certification?
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Are you ready for ISO 55000?
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Getting started Implementation Certification Sustainability Find out about best practice asset management and why ISO 55000 makes good business sense
Discover how to implement an asset management system and the benefits to your business
Find out how independent certification and verification supports your asset management
Make sure that your asset management system continues to deliver the best for your business
• Self assessment • 2~3 week
duration • Readiness audit • 4 ~ 8 weeks
• Implementation Roadmap
• 3 ~ 12 months • AMS value
realization
• 3rd Party certification (IAM certified bodies)
• Periodic audits • Review of
processes implementation
4 1 2 3
KBC Approach
Sharing Goals: Enhancing client’s AMS Ensuring sustainable performance leading to ISO certification
Assessment Process A
D C
B
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Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to an organisation > How KBC can help companies achieve
certification?
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Benefits A company’s asset management system provides a structured approach using best practice methodologies to manage the lifecycle of assets in achieving set reliability goals and > Reduced risks associated with ownership of assets – anything from
unnecessary maintenance costs and inefficiency to accident prevention (explosions at gas plants for example)
> Improved quality assurance for customers/regulators – where assets play a key role in the provision and quality of products and services
> New business acquisition - stakeholders gain confidence from the knowledge that a strategy is in place to ensure assets meet the necessary safety and performance requirements
> Supports international business growth – demonstrating that the requirements of an internationally recognised asset management system are being met
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Benefits/Cost Chart
Potential benefits ~ 5 to 20% reduction of Maintenance Budget
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TIME
15 ~ 20 Months
6000 5000 4000 3000 2000 1000
0
US
$’00
0
Factors influencing benefits realisation
> Starting point > Understanding of goals > Management commitment > Speed of implementing recommendations − Staff motivation − Capability and availability of staff
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Agenda > Introduction > What is ISO 55000? > Drivers for adaptation and certification > Application process of ISO 55000 > Benefits to the organisation > How KBC can help companies achieve
certification?
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KBC Operational Excellence
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ASSET MANAGEMENT
Maintenance Strategy
Program Design
Implementation Plan
KPIs & Stewardship
Communication
Organisation
Risk Management
Work Screening Prioritisation Planning &
Scheduling
Work Execution Improvements
CMMS Optimisation
TA Work scope Optimisation Execution & Planning
Defect Elimination RCFA Tools & Training
PM & PdM Plans Risked Based Inspection
Critical Equipment Plans Asset Policies
Best Practice Implementation Plan
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