Digital Asset Management the way we see itThe Landscape of Asset ManagementInformation Systems

What is ‘Best Practice’ Asset Management?Asset management as defined in the BSI PAS 55:2008standard requires ‘a holistic view and one that can unitedifferent parts of an organisation together in pursuit ofshared strategic objectives’. It is Holistic, Systematic,Systemic, Risk Based, Optimal, Sustainable and Integrated.The publication of the new ISO 55000 asset managementstandard also highlights the need for an objective driven,highly integrated, fully coordinated, systematic approach;Managingthe ematicAssetmanagement basedKey Principles & Attributes of Asset ManagementCoordinated activityof an organisation torealise value from itsassetsSource: PAS 55-2:2008Assets that arewithin scope of theasset managementsystemSet of Inter relatedor Interactingelements toestablish assetmanagement policy,asset managementobjectives andprocesses to achievethose objectives‘An asset management system is a set of interrelated andinteracting elements of an organisation, whose functionis to establish the asset management policy and assetmanagement objectives, and the processes, needed toachieve those objectives. In this context, the elements ofthe asset management system should be viewed as a setof tools, including policies, plans, business processesand information systems, which are integrated to giveassurance that the asset management activities will bedelivered.’Source BS ISO 55000:20142The Landscape of Asset Management Information Systems

Digital Asset Management the way we see itHow can Information Technology help?(life-blood) around the body of the asset organisation to theplace where it is most needed and where it can enable thedecisions that will deliver the greatest benefit.Throughout each stage of the asset lifecycle from conceptionthrough to disposal, information is required to support assetmanagement processes, workflows, planning and decisionmaking. In many ways information could be described as thelife-blood of the asset-intensive organisation.If asset management best practice is characterised ashaving a ‘holistic, systematic, systemic, risk based, optimal,sustainable and integrated’ approach then both informationand technology (and the way they are deployed and utilised)are fundamental to enabling such a best practice approach.Exactly how this could be achieved is described in more detailbelow.The way in which information is designed, captured, stored,maintained, used and disposed of through the use oftechnology also has the ability to impact the effectivenessof the asset management organisation. If information is thelife-blood, then the technology to manage and use thatinformation is the heart and veins - pumping the informationOperationsIncreased asset uptimen Increased asset productivityn Improved service provisionn Reduced operating costt manageseEffectiveAssetManagementAsset age & conditionAsset expenditureCl Accea ur P rater e Ffo orm rean casce tsKPI’sAsPlanning & PerformanceIncentive / objective alignmentn Consistent roles & JD’sn Imp. succession planningEngineering &Maintenanceset baasseg ofndin deliveryatsrdUnde ptimiseOClear,easset videncedbinvestmen asedt planssreilu efa vicet erss f sda toce osdu r cRe oweLtifiedquan lanst risk gency PessAtinr ConCleaAccurate perf. reportingn Improved decision makingn Scenario & resourceplanningent informmion systeatImproved asset riskunderstandingn Appropriate risk / cost balancen Reduced penalty costsn&Risk ManagementVisibilitSpar y of Contes /mate ractor worrialsneed kssHuman ResourcesnCl Asseea tr c ceom ntpe ricte cunc ltuy r reeqts.ntiomaorinf edset ess a nr a dateaClSupply ChainImproved supplier mgmntn Reduced inventoryn Vendor rationalisationn Economies Of Scale BenefitsnsmInformation TechnologyDelivering effective IT solutionsn Improved investment planningn Improved ROInBusiness processesUnderstanding of assetsnnFinanceAccurate asset valuationn Accurate financial reportingn Improved budgets & forecastImproved forward planningEfficient use of resourcesn Reduced WLCnStrategy & RegulationInvestor confidenceRegulator confidencen Improved RegulatoryNegotiationnnCustomer ServicennnImproved service provisionn Reduced complaintsn Lower customer billsn Enhanced reputationThe benefits of being aligned and integrated to deliver effective asset management‘Asset management requires accurate asset information, but an asset management system is more than a managementinformation system. Asset management interacts with many functions of an organisation. The assets themselves can alsosupport more than one function and more than one functional unit within the organisation. The asset management systemprovides a means for coordinating contributions from and interaction between these functional units within an organisation’.Source: ISO 55000 20143

Exploring the Asset Management Technology LandscapeTypical Asset Management Technology Landscape Components (Non-ERP based)Asset Investment PlanningABSharePoint / Documentum- As-Built drawings- Asset Schematics / diagrams- Method statements / Risk Assessments- Operations & Maintenance ManualsRiskManagementOptimal Portfolio- Asset Investment Schemes- Demand Projections- Future Service Provision Targets- Funding ConstraintsBack OfficeDocument ManagementCapital Project DeliveryCore EAM SolutionBalancing:- Service quality standards- Asset system resilience- Risk and consequence of failure- Cost of risk mitigation- Preventative interventionsMI Reporting- Capital Projects- Asset Data / Information Repository- Asset Hierarchy- Work Planning / Scheduling- Reactive work orders / fault resolution- Work order generation / completion / feedback- Inventory Management- Spares / Materials requisitioning & fulfilmentNGISWAssetMonitoring- Strategic Reporting- Tactical / Operational reports- Financial reports- Asset performance reports- KPI DashboardHandheld DevicesSTransactional data exchange:HR information:- Employee ID’s- Resource skills / competencies & qualifications- Time recording / payrollFinance information:- GL Cost Centres- Std unit costs- Optimisation of resource scheduling / work allocation- Job costing actuals(time & materials)- Work order receiving / completion / feedbackProcurement information:- Asset information updates- Vendor Master list- Spares / Materials requisitioning- Spares catalogue- Access to associated documents- Purchase requisitions / ordersAdvanced Scheduling /Rostering- Support for lone workingThe diagram above highlights the key technology elements(and their relationships) of a ‘typical’ asset management ITlandscape, supporting the asset lifecycle from conceptionthrough to disposal. In the sections below five componentsof this landscape are explored in more detail with a focuson some characteristics of ‘The Leaders’ and the potentialbenefit of deploying technology in support of a bestpractice approach.1. Asset Investment PlanningThe investment needs are many but the funds are oftenlimited. Asset Investment planning technologies enable assetPlanners, Operators, Maintainers, Finance and Risk Managersto identify, evaluate and select the investment schemes whichmake improvements to the asset portfolio to deliver better onthe corporate objectives.As well as using the past as a guide, The Leaders in assetinvestment planning use systemised predictive modelling toproject forward in time to evaluate different future scenariosaffecting demand and supply, for example; population growth,cost of service provision, technological advances, futureservice levels and the impact of climate change. The leadersare able to use technology to identify, capture and carefullyevaluate a wide range of candidate investment schemes tomeet these potential scenarios in a standardised, balanced4The Landscape of Asset Management Information SystemsLocal DepotSCADAWork-order print outTelemetryPLCAsset operation information (faults, temperature, vibration etc.)and fully evidenced way. They understand current and futurerisks and how and in what ways the proposed investmentschemes mitigate these risks.They are also able to use technology to demonstrate thealignment of the investment with corporate level and assetmanagement strategy drivers. They understand the benefitsthe investment will provide as well as the whole life cycle cost- not just the cost of the Acquisition Phase. Utilising thesetechniques and good quality information The Leaders can usetechnology to define the optimal asset investment portfolio tomeet any given future scenario. They harness the processingpower of IT systems to quickly test and understand theimpact of changes in the underlying assumptions or financialconstraints on their forward asset investment programme.Having a mature approach to asset investment planningsupported by information technology enables organisations toprovide transparency and clearly demonstrate to customers,shareholders and regulators alike that they have a fullyevidenced asset investment plan which balances cost, risk,return on investment and service provision in an optimal andeffective way. In turn, this provides those stakeholders withthe confidence and assurance that the organisation is ‘doingthe right thing’. Customer perception of the organisation isimproved, satisfaction rates are higher and complaints lower.

Digital Asset Management the way we see itRegulatory audits are also less challenging and it becomeseasier to secure future price increases. It is also easier toobtain future funding at lower financing costs.2. Capital Project Planning & DeliveryResearch suggests that about 80 % of lifecycle costs arelocked in to the asset at the design stage1. Technologiessupporting this critical phase enable asset owners to trackand manage the planning, design, construction and handoverof the physical assets and their accompanying assetinformation sets.The Leaders understand the impact of the new assetsupon the existing asset base long before they are built.Computerised infrastructure models show how the various‘asset systems’ are connected together to perform a functionand deliver a product or service. Using technology in this waymakes it much easier to understand the risk and criticalityof the asset replacement / construction project and thus theappropriate level of focus on ensuring everything is deliveredaccording to plan.In keeping with the best practice theme of a holistic, joined upview across the asset lifecycle The Leaders use technologyto engage and integrate with their suppliers during theconstruction and commissioning process. Web-based portalsare often utilised to improve accessibility and contractorsand suppliers are encouraged to use these to manage thedelivery of the assets - they may even have it mandated intheir contract.Crucially, the leaders view asset information as being just asimportant (if not more important) that the actual physical assetbeing built. Model / manufacturer information, schematics, ‘asbuilt’ diagrams, installation dates, and operation & maintenancemanuals handed over by suppliers will form the informationbaseline for nearly all future asset decisions. The Leaders mayhave suppliers entering information directly in to the core assetmanagement systems (subject to data input validation andquality rules) or a staging environment where it can be validatedand quality assessed before loading to the live environment.Projects are not ‘complete’ and suppliers not paid until all assetinformation is handed over and its quality verified.Using information technology as an enabler during the capitaldelivery phase facilitates closer integration between assetsupplier and asset owner / operator. When a joint, collectiveview is held of what is being built where, when and howconstruction projects are progressing it becomes much easierto ‘manage’ the supplier; reducing costs, improving deliveryand minimising costly delays. A high quality baseline assetinformation set improves the quality and confidence in all1future decision making right the way through the remainingelements of the asset lifecycle.3. Core Asset Management Information SystemWhether a best of breed or ERP based tool, the core assetmanagement system holds the register or inventory ofphysical assets (typically in a structured hierarchy). It alsoprovides a way to manage and track the maintenance andrepair of assets. Asset management systems often also havefunctionality to manage the provision of the spare parts andconsumables needed to keep the assets fully operational andminimise unplanned down-time.The Leaders have an asset management informationsystem that is able to cope with the variety and complexityof their asset base without the need for inventive manual‘workarounds’. Whether it be a fixed point, linear or mobileasset The Leaders have the technology that enables them toquickly and easily find an asset in the hierarchy and accessall of its attribute information including its performance andmaintenance history. The Leaders have developed efficientworkflows within the systems that enable and empower theirworkforce rather than constrain them.Equally, the workforce genuinely sees the asset managementtechnology as an essential part of their toolkit. It providesthem with a trusted and cherished source of information,equipping them with just what they need to get the job doneright first time, every time – so that they can focus on keepingthe assets operating. For this reason the workforce see it asvery much in their interest to maintain the quality of informationand invest the time and effort to enter information correctlyand proactively identify and resolve information / data errors.The asset information management systems of The Leadershave intelligent asset intervention policies in place. TheLeaders are able to fully exploit the advanced capabilityof their asset management systems such as the ability t