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Asset Strategy: An Approach for Putting RCM//RBI/SIS/FMEA Outputs into Action

Asset Strategy: An Approach for Putting RCM//RBI/SIS/FMEA Outputs into Action. What I will Cover. Evolution of Maintenance Philosophy Maintenance & Reliability evolution (recent incidents) What is Asset Management? Asset Strategy Life Cycle

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Asset Strategy: An Approach for Putting RCM//RBI/SIS/FMEA Outputs into Action

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  1. Asset Strategy: An Approach for Putting RCM//RBI/SIS/FMEA Outputs into Action

  2. What I will Cover • Evolution of Maintenance Philosophy • Maintenance & Reliability evolution (recent incidents) • What is Asset Management? • Asset Strategy Life Cycle • Failure Modes and Risk Mitigation (e.g. RCM Overview) • Benefits of Asset Stages (case study) • Key Points Take Away • Questions

  3. Evolution of Maintenance Philosophy Changing Maintenance Expectations

  4. Evolution of Maintenance Philosophy Changing Maintenance Techniques

  5. M&R History (recent incidents)

  6. M&R History (recent incidents) • Explosion in Waste Heat Recovery unit at LNG Plant • Production shutdown • Initial loss: US $40 million / week • Root cause: Thermal fatigue and material embrittlement caused by poor weld quality

  7. M&R History (recent incidents) • 2010 Deepwater Horizon (BP) oil spill • Casualties: 11 dead • Spill: 4.9 million barrels of oil • Root cause: • Wellhead blowout . • BP’s management process did not adequately identify or address risks created by late changes to well design and procedures. • Better management by BP, Haliburton and Transocean would almost certainly have prevented the blowout by improving the ability of individuals involved to identify the risk they faced, and to properly evaluate, communicate and address them

  8. Potential Root Causes • Industry experts have identified a number of root causes for all recent incidents • Deficiencies in inspection & maintenance procedures/ programs • Unreliable and inadequate process control equipment • Inadequate Asset Management System

  9. Asset Management "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 for the purpose of achieving its organizational strategic plan". (Institute of Asset Management / British Standards Institute PAS 55: 2008)

  10. Asset Strategy • An ASSET STRATEGY management system is the framework of processes and procedures used to ensure that an organization can fulfill all tasks required to ensure the asset delivers on its intended purpose • A key milestone towards PAS 55 / ISO 55000 compliance • A third generation maintenance & reliability methodology • A risk based approach • A proven asset management methodology • Implemented over 150,000 assets

  11. Why Asset Management • Asset management is a risk based approach • This is a targeted approach (i.e. business unit, plant, systems etc.) • Select most appropriate methodologies • Reliability Centered Maintenance (RCM) • Risk Based Inspection (RBI) • Safety Integrity Level Analysis (SIL) • Failure Modes Effects Analysis (FMEA) • Generic Assessment • Basic Care • Covers asset and asset management life cycle

  12. Asset Strategy: How to start ? • How to get senior managements' commitment? • How to get end-users’ support/ buy-in? What’s in it for me?

  13. Asset Strategy: How to continued? • How to get senior managements' commitment ? • Align with corporate strategies • Align with “Loss of Containment” , “Loss of Value” • Repeated failures (e.g. crack in coke drum; coker charge pump trips/other failures; naphtha reactor exchanger leaks etc. and ties with critical equipment/ systems / plant ) • How to get stakeholders’ / end-users’ support? • Show the big picture • Show value • Define end-to-end process • Make it simple • Train users

  14. Asset Strategy Lifecycle

  15. Asset Strategy Life Cycle 1. Asset Information Creation and Cleanup • Define minimum information required for safe and reliable operations / maintenance • Define requirement by asset class (e.g. multi stage centrifugal pump) • Ensure minimum information (i.e. data sheet, P&ID, PFD, VP, SLD, OM manual, PSI etc.) required to perform maintenance and operations safely are available to users

  16. Asset Strategy Life Cycle 1. Asset Information: Master Data Creation and Cleanup • Define scope based on priority/risks • Define system boundary of scoped area • Ensure all maintenance significant assets are identified and in ERP system (i.e. SAP) • Ensure Master Data created/ cleaned up • Ensure ongoing “Asset Integrity”, a way of monitoring the completeness, accuracy and availability of asset information • Asset Master Data Scorecard

  17. Asset Strategy Life Cycle 2. Asset Criticality Assessment • In order to prioritize which to focus first • Set ground rules & ensure consistency • Ranks the assets based on intended function and consequences of failure • For production processes, safety, reputation, regulatory, environmental and economic considerations must be consistently applied to the enter group of maintenance significant assets • Develop asset criticality reports and get key stakeholders’ approval

  18. Asset Strategy Life Cycle 2. Asset Criticality Ranking

  19. Asset Strategy Lifecycle • 3. Asset Strategy Development • Determine strategy development methodologies • Regulatory / code / legal/ contractual requirements • Criticality of the assets / systems • Types of assets

  20. Asset Strategy Life Cycle • 3. Asset Strategy Development: Methodologies ( Some examples)

  21. Asset Strategy Life Cycle • 3. Asset Strategy Development: Methodologies ( Some examples)

  22. Asset Strategy Lifecycle • 3. Asset Strategy Development • RCM Overview • Reliability Centered Maintenance, often referred to as RCM, is a process to ensure that assets continue to do what their “Owner” requires in their present operating context. • John Moubray (industry leading book RCM2) characterized RCM as a process to establish the safe minimum levels of maintenance.

  23. Asset Strategy Life Cycle 3. Asset Strategy Development: RCM Benefit

  24. Asset Strategy Life Cycle 3. Asset Strategy Development: How to start RCM? This starts with the 7 questions below, worked through in the order that they are listed: What is the item supposed to do and its associated performance standards? In what ways can it fail to provide the required functions? What are the events that cause each failure? What happens when each failure occurs? In what way does each failure matter? What systematic task can be performed proactively to prevent, or to diminish to a satisfactory degree, the consequences of the failure? What must be done if a suitable preventive task cannot be found?

  25. Asset Strategy Life Cycle 3. Asset Strategy Development (a case study) • RCM studies conducted • Primary Function for a Coke Fired Boiler • To transform “A” lb/h of BFW at T1 degF & P1 Psig to “B” lb/h of steam at T2 degF and P2 Psig • Boundary for Primary Functions Sweet condenser Steam drum Generation bank Mud drum Downcomers Primary superheater Secondary superheaterDesuperheaterEconomizer Water walls

  26. Asset Strategy Life Cycle 3. Asset Strategy Development • Secondary Function for a Coke Fired Boiler • To completely remove flue gas and ash from the boilers • Consume coke and fuel gas • To consume air for complete fuel combustion • Boundary for Secondary Functions • Fuel System : Ball Mills, Burners, Ignitors, Flame Scanner, Flame rods etc. • Air System: PA/ FD Fans, Air Heater, Ducting, Expansion joints • Fuel Gas Removal : Air Heater, Boiler Casing, Ducting, ESP, ID Fans, Guillotine etc. • Ash Removal System: Clinker Grinder, Nozzle, Ash Pit

  27. Asset Strategy Life Cycle 3. Asset Strategy Development • Asset strategies (both recurrence and one time actions )are developed, reviewed and approved for required assets as per guidelines • Once completed, ensure users have easy access to strategy documents (i.e. Asset Strategy Data Sheet: ASDS) • Ensure everything in the ASDS is cross-functionally reviewed for accuracy and completeness • ASDS for a pump is attached (as an example).

  28. Asset Strategy Life Cycle 4.1 Maintenance Strategies & Programs • Maintenance & inspection strategies developed (e.g. Preventive, Condition Based, Predictive) • Develop recurring maintenance / inspection programs • Develop event based programs (e.g. turnaround) • Develop reliability monitoring programs • Maintenance and inspection programs developed & activated in CMMS systems (e.g. SAP, RBMI/PCMS, Vision etc.)

  29. Asset Strategy Life Cycle 4.1 Maintenance Strategies & Programs • Ensure alignment of maintenance procedures with asset strategies and adequate risk mitigation • Optimize Inspection and PM programs across process systems • Across disciplines (e.g. rotating equip., fixed equip., E&I ) • Across programs (e.g. all vibration analysis, lubrication, pipe thickness measurement etc. • Resource balancing • Aligned with production plans (Turnarounds, Major Events, Program work)

  30. Asset Strategy Life Cycle 4.2 Spares Strategies • Activating Spare parts and preservation strategies that are aligned to meet the asset strategy requirements • Spares strategies (e.g. PM, operational and critical spares ) are developed and set in CMMS (e.g. MM, BoM, Order controls) • Storage requirements are developed & implemented • Preservation requirements are developed & implemented

  31. Asset Strategy Life Cycle 4.3 Operating Strategies • Ensure alignment of operating procedures with asset strategies and adequate risk mitigation • Update operating procedures with technical operating envelope data (Safe Operating Limits / Integrity Operating Window) • Incorporate RCM findings into operating procedures and/or operator’s log book or daily route check sheets • Develop & enable stand-by strategies • Develop Procedure Sequence Flow Diagram (PSFD)

  32. Asset Strategy Life Cycle (4.3 PSFD) Note 6: Access operating procedures by placing cursor over the procedure and selecting. A hyperlink will open the Operating Procedure.

  33. Asset Strategy Life Cycle 4.4 Process Strategies • Enabling technical envelopes (IOW, SOL) and aligning them with operating procedures to meet the needs of the asset strategy requirements • Ensure alignment of process monitoring with asset strategies • Monitor process parameters that have impact on production and/or functional failures (e.g. Boiler Feed Water pH, Pulverized coke size in Ball Mill etc.)

  34. Asset Strategy Life Cycle 5 Work Execution • Planning, scheduling and coordinating of maintenance work (recurring PM, turnaround and break-in work) • Actual execution of maintenance work • Ensure maintenance work packages include all required documents indicated in PM plans ( checklist, procedure, tech stand.)

  35. Asset Strategy Life Cycle 6 Capture History • Define and implement history capturing process • Craftsmen record all failure findings and maintenance and inspection history and enter in SAP/Livelink/ other ERP tools • Ensure on-line monitoring, operations history, alarm data, TOE exceedance history etc. are in plac • Other information related to equipment are entered in SAP/ other ERP tools • Inspection records, checklist, measured data, as found reports, pictures etc.) • Vendor reports • Engineering evaluation

  36. Asset Strategy Life Cycle 7 Analyze Data • Data review by Maintenance, Reliability and Other Disciplines • Review performance vs. expectations • Maintenance, inspection , incident and failure history • New requirements (e.g. regulatory, business, obsolete assets/ spares etc.) • Operating context (i.e. any significant changes) • Review change requests, initiate asset strategy changes as appropriate through documented change management process

  37. Asset Strategy Life Cycle 8 Asset Strategy Improvement • Document Asset Management review process • Document all changes to asset strategies • Implement approved changes to asset strategies(i.e. inspection,/ PM programs, spares, operation or process ) • Monitor effectiveness for continuous improvement

  38. Benefits of Asset Strategy (Utilities Case study) • Coke Boiler 1 reliability improvement • All maintenance/ inspection strategies and one time changes such as waterwall (boiler tubes) modification has been implemented Boiler 1 in October 2013. • No forced outages due to tubes has occurred for the last 24 months. • Based on historical records, 6 tube failures are expected every 24 months. With a clean history for the past 24 months, $8M has been saved for 1 boiler. • Implemented for 4 coke boilers • Safety Improvement • Devolved Burner Management System (BMS) based on the SIL Analysis to improved process safety • Operational Discipline • Due to the large amount of procedures for a complex plant, it was difficult to extract a specific procedure for a situation/occurrence. • Developed Procedure Sequence Flow Diagrams that capture all relevant operating procedures for each system in a single diagram that provided a clear visualization of the complete process to improve operational discipline.

  39. Benefits of Asset Strategy (Utilities Case study) • PM Clean up • The deletion of 900 PMs that were not linked with failure modes , resulted in an annual savings of $5.4M. • PM Optimization • Prior to asset strategies, Over a period of 10 years, an average of 7,000 work orders were released each year. In last two years 4,200 work orders are released • Recalculated Safety Integrity Level (SIL) based on 3 years Proof Testing Interval (PTI) in order to align with Shutdown schedule. • By changing PTI to 3 years from 2 years, still plant can achieve required Risk Reduction Factor (RRF). Though Safety Instrumented Function (SIF) is reduced but required Safety Integrity Level (SIL) is still met or exceeded • Pre-defined work scope improve work execution • Over a period of 10 years, an average of 7,000 work orders (both planned and corrective) were released each year. • 900,000 ours to develop work scope : assumptions: 2 procedure, 1 check sheet, 1 SAP task list required for each work orders and each activities (e.g. writing a procedure ) take 4 hour • Now maintenance procedures and check sheets are in place and readily available to execute work resulting elimination $ millions / year from the maintenance budget

  40. Key Points Take Away • Senior managements' commitment • End users’ support • Make it simple • Focus on equipment strategy life cycle • Stewardship for continuous improvement

  41. Back up slides (Definitions) • Planned Maintenance • Any maintenance activity for which a pre-determined job procedure has been documented, all labour, materials, tools, and equipment required to carry out the task have been estimated, and their availability assured before scheduling of the task. • Run-to-Failure (RTF) • A maintenance strategy that permits a specific failure mode to occur without any attempt to anticipate or prevent it.

  42. Back up slides (Definitions) • Preventive Maintenance (PM) • An equipment maintenance strategy based on replacing, overhauling or re-manufacturing an item at a fixed interval (e.g. time and/or distance), regardless of its condition at the time. Car servicing at every 6 months or 6,000 KMs whichever comes first • Condition Based Maintenance (CBM) • Maintenance activities that are based on measured condition of an asset against predetermined tolerances with no further analysis or decision being needed. If the measurement value exceeds the predetermined tolerance, then corrective maintenance activity is triggered, without question.

  43. Back up slides (Definitions) • Predictive Maintenance (PdM) • An equipment maintenance strategy based on measuring the condition of equipment in order to assess whether it will fail during some future period, and then taking appropriate action to avoid the consequences of that failure. The condition of equipment could be monitored using Condition Monitoring, Statistical Process Control techniques, by monitoring equipment performance, or through the use of the Human Senses. • Maintenance Significant • An asset for which maintenance cost and / or maintenance and failure history are required to be tracked, controlled and managed. It also includes assets that are required by regulatory bodies.

  44. Back up slides (ASDS example) 3. Asset Strategy Development Section 1 (General Data) should answer the RCM question 1 • What is the item supposed to do and its associated performance standards? • Describe functions, system boundary, Safe Operating Limit, Integrity Operating Window • System configuration • Maintenance and other costing info

  45. Back up slides (ASDS example) 3. Asset Strategy Development • Section 2 (Failure Modes and Maintenance Strategies) should answer the RCM question 2-5 • In what ways can it fail to provide the required functions? (Equipment / Part) • What are the events that cause each failure? (Degradation Mechanism) • What happens when each failure occurs? (Effect of Degradation) • In what way does each failure matter? (Likelihood / Consequences)

  46. Back up slides (ASDS example) 3. Asset Strategy Development Section 3 (Maintenance Programs ) should answer the RCM question 6 • What systematic task can be performed proactively to prevent, or to diminish to a satisfactory degree, the consequences of the failure?

  47. contact@globalassetcare.com Phone: 1-403-891-6669 ? ?

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