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 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. EH&S and Regulatory Critical
Asset Strategy Life Cycle
2. Asset Criticality Ranking
Asset Criticality
Category / Considerations
Consequence
% of Maintenance items A
EH&S and Regulatory Critical
High Priority
Health & Safety, Environment, Regulatory, Reputation
(e.g. PSV, Pressure Vessels, SIS, S-23, BMS, Nuclear, Process Analyzer, Fire Protection etc.)
Develop detailed / through maintenance & operations strategies
High
A & B should account 20% B
Business Critical
Economic Consequence (Define your threshold) C
Medium Priority
All consequence categories (Pumps, Motors, VFDs, control valves etc.)
Develop generic maintenance/ operation strategies
Low-Medium
20% to 40% D
Low Priority
All consequence categories
Run to Failure strategy (business perspective)
No proactive action feasible to mitigate a failure
40% to 60%

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)
Asset Criticality
Types of Assets
Strategy Methodologies
Strategy Register A
EH&S and
Regulatory Critical
Safety Instrumented System (SIS) / Instrumentation
SIL Analysis, RCM
Asset Strategy Data Sheet (ASDS)
Fire Protection
NFPA, RCM
Pressurized Static Equipment (e.g. PSVs, Furnace, Boiler, piping, other vessels)
RBI, Regulatory, RCM
Electrical (e.g. UPS, BMS etc)
RCM, Code B
Business Critical
Non SIS (Instrument)
RCM
Electrical
Other Static equipment
Rotating equipment

21. Asset Strategy Life Cycle
3. Asset Strategy Development: Methodologies ( Some examples)
Asset Criticality
Types of Assets
Strategy Methodologies
Strategy Register C
Medium Priority
All types of assets
Class based generic assessment
Simplified FMEA
Asset Strategy Data Sheet (ASDS) D
Low Priority
Run-to-Failure
Sparing strategy may be required

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 deg F & P1 Psig to “B” lb/h of steam at T2 deg F and P2 Psig
Boundary for Primary Functions
Sweet condenser Steam drum Generation bank
Mud drum Downcomers Primary superheater
Secondary superheater Desuperheater Economizer
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.
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