The Schreiner Maintenance Management

Published Date: 02 Nov 2017

The PAS 55 standard on physical asset management defines five vital asset management areas within organizations namely financial assets, physical assets, human assets, information assets and intangible assets. Asset management is the constant process-improvement policy for improving the accessibility, safety, dependability, and durability of industrial plant assets which in short term is will be known as maintenance management.

4.4.1. Structure, authority and responsibilities

The requirements set out in PAS 55 help an organization to identify improvement opportunities and create an improvement plan. The top management of an organization is liable to develop and apply asset management configurations and constant effectiveness of an organization, which requires enhanced asset involvement and managing risks sustainably to ensure organizational success.

They can appoint an associate that will be regardless of other responsibilities, be liable for the overall design, maintenance, documentation, review and improvement of the organization’s maintenance management system. The top management will be appointing members of management whose responsibility is to warrant that the assets and assets systems deliver the requirements of the maintenance management policy, strategy, objectives and plans.

Top management is responsible to ensure that assets and assets structures provide the requirements of the maintenance management policy, strategy, objectives and plans. They will be ensuring the feasibility of the above mentioned and communicating to all relevant stakeholders the importance of complying with the requirements of the asset management system in order to achieve its organizational strategic plan.

Top management will be identifying and monitoring the requirements and anticipations of the organization’s stakeholders and taking corresponding and timely action, to the extent that these have implications for the organization’s management of its assets. They will be ensuring that the maintenance management policy and strategy are consistent with the organizational strategic plan.

The top management will be identifying and monitoring the requirements and expectations of the organization’s stakeholders ensuring that the asset management policy and strategy are consistent with the organizational strategic plan. They will be considering the adverse impact that the asset management policy, asset management strategy, asset management objectives and asset management plan might have on other aspects of the organization and vice versa.

4.4.2. Outsourcing of asset management activities

Outsourcing can be seen as any situation where an organization contracts with another organization for the provision of a service that could equally be provided by a person, unit or department within the organization that requires the service. This can be done for several aspects of an organization.

This section looks closely at the outsourcing of maintenance management activities. The core success of outsourcing is that the organization should be in control and effective communication measures should be taken in to account. Any characteristic of maintenance management that is outsourced by an organization should be controlled by that organization if it has an impact in the compliance with the requirements of establishing, documenting and maintaining a maintenance management system in accordance with the requirements of this PAS.

The organization will detect and document how these fragments will be controlled and integrated into the organizations’ maintenance management system. The organization will correspondingly detect and document the procedures and deeds that are to be subcontracted including the scope and limits of the subcontracted procedures and deeds and their interfaces with the organization’s own procedures and deeds.

The organization will detect and document the procedures and scope for the division of knowledge and information between the organization and the contracted service providers.

The organization will also detect and document authorities and responsibilities within the organization for supervision of the outsourced processes and activities.

Outsourcing has advantages of saving money and being able to use the human resource responsible for the outsourced maintenance management activity to apply work in another required field. Outsourcing also has disadvantages like hidden costs, information threat if outsourcing requires sharing information, quality problems and supply-chain problems if there is a delay from the other company’s side.

4.4.3. Training, awareness and competence

The organization will certify that any personnel beneath its direct control employed to do maintenance management related deeds has an applicable level of competence with respect to education, training or experience.

Where maintenance management activities are outsourced, the organization will certify that contracted service providers have provisions in place to determine and validate that their personnel is competent. The organization will generate strategies for the human resources required to develop and implement its maintenance management system.

The organization will detect the competency requirements for these personnel and plan the training necessary for them to achieve these competencies. The organization will arrange for providing this training and retain associated records. Training is important to ensure that the personnel is ready to apply what they learnt in a real situation where there might be a human life risk or asset life may be threaten for instance a leakage of sulphuric acid on a steam pipe in a plant.

The organization will establish, implement and maintain processes or procedures to make persons working under its control aware of the maintenance management related risks associated with their work activities and the maintenance management benefits of personal performance.

The organization will make persons working under its control aware of their roles and responsibilities and the importance in complying with the maintenance management policy, processes and/or procedures and plans.

The organization will make persons working under its control aware of the potential consequences of departure from specified maintenance management processes and/or procedures.

4.4.4 Communication, participation and consultation

Communication between top management, stake holders and personnel working with maintenance management related activities is important to ensure that the organization is fully functional. The organization will ensure that relevant maintenance management information is effectively communicated to and from personnel and stakeholders, including contracted service providers.

The organization will ensure consultation with stakeholders that is relevant and appropriate to their involvement in the development of the maintenance management strategy, objectives and plans.

The organization will ensure consultation with stakeholders that is relevant and appropriate to their involvement the development of functional policies, engineering standards, processes and/or procedures.

The organization will ensure consultation with stakeholders that is relevant and appropriate to their involvement with risk assessments and determination of controls.

The organization will ensure consultation with stakeholders that is relevant and appropriate to their involvement with incident investigation.

The organization will ensure consultation with stakeholders that is relevant and appropriate to their involvement the continual improvement of the asset management system.

4.4.5 Asset management system documentation

It is of high importance for an organization to generate, apply and maintain an updated system documentation that guarantees a maintenance management system that can be fully understood, communicated and operated without requiring a lot of skill. These documents include a report of the core elements of the asset management system and their interaction and direction to related documents. This documentation will also stipulate the asset management policy, strategy, and objectives.

The documents will contain techniques and operational principles if their deficiency could result to failure to accomplish its maintenance management strategy, asset management goals or to control acknowledged asset management threats.

The documents comprising information about each asset is structured and administered to adapt several maintenance roles with online structure as well as constant observing of the asset which constitutes the foundation for predictive maintenance.

4.4.6 Information management

Information is the collection and management of information from one or more sources and the distribution of that information to employees of the organization and subcontractors due to outsourcing of asset management activities. The organization must confirm that the information from diverging outsourcing activities is reliable. The information is both physical and electronic and distribution involves those who have a stake in, or a right to that information.

The organization needs to detect the asset management information it requires to meet the demands considering all phases of the asset life cycle. It is required by PAS 55 that the information is of quality applicable to the asset management decisions and activities it supports. The organization needs to design, apply and maintain systems for managing and protecting asset management information.

The organization must develop, apply and improve techniques for regulating all information collected. These techniques will guarantee the suitability of the information is correct according to authorized personnel prior to utilization. This will provide that information is apt through periodic review and revision.

Allocation of appropriate roles, responsibilities and authorities regarding the procedural process collecting, archiving and disposal of items of information is followed promptly rendering disposed information as useless.

Techniques applied by top management should guarantee that contained information, retained for legal or knowledge protection purposes, is recognized and that information is secure and, if in electronic form, is backed up and can be recovered.

4.4.7 Risk management

The organization will generate, implement and maintain documented procedures for detection and valuation of asset related and maintenance management-related risks with the necessary application of control measures throughout the life span of the assets. The necessity to manage risk thoroughly relates to all organizations and individuals and to all functions and accomplishments inside an organization. This need should be acknowledged as of fundamental importance by all managers and staff. The alternative to risk management is precarious management, or making irresponsible decisions, or decisions that are not centered on a careful consideration of the actualities.

The organization’s methodology for risk management will be proportionate to the level of risk under consideration; be defined with respect to its scope, nature and timing to ensure it is proactive rather than reactive; include, where appropriate, the assessment of how risks change or can change over time and usage. The methodology will be consistent with the organization’s operating experience and the capabilities of risk control measures employed; provide for the monitoring of required actions to ensure both the effectiveness and the timeliness of their implementation.

The identification and assessment of risks will consider the probability of credible events and their consequences, and will as a minimum cover: physical failure risks, operational risks, natural environmental events factors outside of the organization’s control, stakeholder risks, and risks associated with the different life cycle phases of assets.

The organization will keep the results of identification of risks, risk assessments and determined controls up-to-date, and document these where not doing so could affect the delivery of the asset management objectives and the maintenance management strategy.

4.4.8 Legal and other requirements

The organization must initiate, implement and preserve techniques and procedures for detecting and accessing the legal, regulatory, statutory and other applicable asset management requirements making the organization compliant to the relevant policies on operations and controls. The organization must ensure that they comply with all the legal and other requirements to avoid law suits.

The organization must design and perform tests of security transactions to determine that they applicable legal and other external obligations or requirements are identified and incorporated into the corresponding elements of its asset management system. The organization will keep this information up-to date. The organization will communicate information on legal and other requirements to all relevant stakeholders.

4.4.9 Management of change

Management of change is a method of repositioning individuals, teams and organizations from a recent state to a sought after future state. It is a structural method intended at assisting change investors to accept and adopt changes in their organizational milieu or employees in their personal lives.

Management of change utilizes elementary structures and methods to regulate any organizational change attempt. The objective is to get the best out of benefits and minimalize the change impacts on employees and evade disruptions.

Management of change usually involves drastic changes in an organization. Change involves people and their emotions - positive and negative. Central to change stands a leadership team. Continuous change is a constant in the equation of competitiveness in today’s economy.

Where existing arrangements are revised, or new arrangements are introduced that could have an impact on asset management activities, the organization will evaluate the related threats before the provisions are applied. The new or reviewed provisions to be reflected will include reviewed organizational structure, roles or responsibilities; reviewed maintenance management procedure, strategy, objectives or plans; reviewed processes or procedures for maintenance management activities; the introduction of new assets, asset systems or technology; the introduction of new contractors or suppliers. The organization will ensure that risks are managed in accordance with.

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4.4.1. Structure, authority and responsibilities

A clear indication of an organization applying the structure, authority and responsibilities is the Aspire Defence Services Ltd (ADSL), which forms part of the Kellog Brown and Root organization which is liable to magnify the U.S Department of Defence’s asset management at army bases. They must give evidence that that they can overtake existing processes. (TRM, 2013) Each level inside Aspire Defence Services Ltd (ADSL) expects an altered point of authority and responsibility. A new trainee may be located at any level at ADSL depending on their experience as well as their educational background. Everyone is supplied with careful and structured orientation into the organization. Each trainee has to conform to performance standards during a 12-week trial period.

Asset Managers at ADSL keep the structured maintenance of the Army's Estates assets under careful scrutiny. They deliver technical and pricing information, commence annual condition surveys and project delivery of maintenance. All of this is done with health & safety and client relations in mind. The assets manager reports to the Estates General Manager. The Estates General Manager oversees planned overall management of Army Estates. This brings together Maintenance Management (planned and reactive), Program Management (Assets and Projects) and Asset Management.

The purpose is to surpass client prospects. Everything from varying a particular lighting globe to a huge project falls into this role. The strategic development director at ADSL carries the responsibility for repeatedly improving the organization. This includes controlling operational change and confirming that the ADSL structure meets organizational devotions. This role touches sections of the organization. This level of responsibility requests for widespread and wide-ranging personal knowledge (The Times 100, 1995).

Individual productivity is increased because employees feel that they can contribute to improve the organization, thus reflecting that innovation by the organization is generated using roles and responsibility and allowing degrees of freedom for top management employees interacting with asset management activities with little creativity.

4.4.2. Outsourcing of asset management activities

Ceres Fruit Juices is one good example of successful outsourcing of asset management activities. According to (Doke and Volschenk, [s.a]) Ceres Fruit Juices has reduced failures by thirty seven hours a month and has improved its overall equipment effectiveness (OEE) applying the asset maintenance management planning tools established and prompted by asset performance management specialist PRAGMA Africa. Outsourcing of asset management activities allows Ceres Fruit Juices to be more efficient and profitable, because the traditional maintenance aspect of the plant is more costly toward the organization, making expenses more and income less.

Ceres Fruit Juices has been using PRAGMA Africa's BURO Service, an asset maintenance management preparation facility aimed to deliver a cost-effective outsourcing option to out-of-date internal plant maintenance management (Doke and Volschenk, [s.a]).

This was an innovative way of applying outsourcing to their maintenance policy by reducing the cost of costly infrastructure such as hardware and software, guaranteed statutory compliance and the absence of administration and maintenance overheads. This increases individual productivity because the asset management employees can spend more time allocated on other tasks that are important to the organization’s survival.

4.4.3. Training, awareness and competence

An example of an organization that complies with the training, awareness and competence of the PAS 55 is AES Eletropaulo, which is a division of AES Brazil which is an electrical supplier in Brazil. According to (Engineering News, 2013) AES Brazil has been awarded PAS 55 certification by the Institute of Asset Management. The organization is the first of all power generation entities in Brazil to obtain this award for their asset management applications. Receiving the documentation is a denotation of AES Brazil’s pledge to asset management and it reveals the degree of development that the organization has with regards to their asset management structure, best practices and maintenance implementation (Engineering News, 2013). Thus AES Brazil can be used in the other subsections as well.

AES Eletropaulo supplies their employees with the training and awareness need to productively manage their asset management and all maintenance-related activities. They also supply opportunities for employees to develop professionally, pursuing the Siga Livre program.

Additional to set objectives to pledge state of affairs that make each employee feel content, beneficial and driven in the working milieu, the organization also concerns itself with quality of life in their employees’ personal life and supplies social and cultural events – several extended to members of the employee’s family.

The organization also runs constant training courses, inductions, internal recruitment, and invests in the permanent upgrading of its work force. This ensures that the employee is fully aware of the responsibility working with asset management and that they are fully competent, physically and emotionally (AES Electropaulo, 2009). This is innovative because training of employees increase their human asset valuation score and makes them believe that the company is acting out in interest toward them, increasing individual productivity.

4.4.4 Communication, participation and consultation

A good example of an organization complying with the PAS 55 standard for information communication, participation and consultation is Gold Fields Limited. They have a purpose to ensure effective and efficient management of Information Communication and Technology (ICT) resources to aid with the achievement of objectives they set for themselves. They want to ensure high availability and recoverability of all critical systems and information.

Communication between top management, investors and personnel working with maintenance management related activities is can be seen clearly, because investors are informed of changes inside the organization by means of investor meetings. Distribution of investor shares is conveyed on the electronic media and the investors are consulted with regards to their dividends. Goldfields effectively communicate the relevant maintenance management information is to and from personnel and investors, including contracted service providers.

Annual sustainability reports and reports regarding important change in asset management procedures are conveyed to investors and employees responsible for asset management and their participation is expected to ensure that the organization functions efficiently (Goldfields, 2010).

Innovation is shown by Gold Fields Limited because they value their employees and also their communication and participation when consulting the investors of the organization. They acknowledge the contributions made by their employees. They strive to keep accidents on the plant to a low score and increase work safety environment.

4.4.5 Asset management system documentation

An organization with good system documentation on asset management structure is Eskom. The system documentation is accessible to employees and subcontractors such as Rotek Engineering and Alstom with the condition that they should be granted access to the Eskom group by the system administrator, the data is shared among employees on a server storing data regarding all the asset management of equipment inside the plant, documents on modifications done by system engineers as well as human resources.

Eskom Documentation and Information Centre (EDIC) is a service that employees of Eskom can use for research and also to document procedures followed. The information and documentation contained by EDIC consists of Business Management Information, research material, corporate governance, legal and audit requirements, standard and procedures as well as general reference material. (Maphari, Roodt, and van Niekerk, 2012)

Employees are also provided with training and awareness on EDIC services and related policies, procedures and legislation and this is regarded as innovative because employees feel that the organization is acting out of interest towards them and no personal interest. This is important from an employee’s point of view, because he/she feels more valued and makes him/her work harder to obtain the goals or vision set by the organization. Eskom provides their employees with opportunities to broaden their knowledge by sending them on courses and also giving them an opportunity to study further so that they are a more valued asset to the organization.

4.4.6 Information management

An example where an effective information management system is applied is the Queensland Government Chief Information office. They have essential principles and values supporting the information layer of the Queensland Government Enterprise Architecture (QGEA), and the rules or conducts through which government agencies are anticipated to comply with in this perspective. The principle they strive on is that information is precise, related, appropriate, accessible and safe.

The Queensland Government assembles and holds substantial amounts of personal information. Inhabitants of Queensland have a right to be free of unsanctioned intrusion and subdivisions of the Government are responsible for guaranteeing that this information is reliably and visibly, accumulated and managed. (Queensland Government, 2012)

Information is the cornerstone to the functioning of Queensland authorities. This principle explicitly distinguishes that information is a prized and strategic asset of government and therefore it must be managed, sustained and exploited in a manner similar to that of other assets of government.

Employees of Queensland Government are trained and are aware that information is a treasured asset and is to be enhanced its broadest degree. Information is incorporated and related to organizational strategic development.

Innovation are applied in this sense where the Queensland government to survive and be a prosperous government using innovational capabilities set at their employees. They act in the principal interest of their employees by training the employees to fully understand the importance of information management. They set certain values that employees live by and are proud of.

4.4.7 Risk management

Chevron is devoted to reducing the organization’s risk by using a good risk management policy. Their risk management policy aids in detecting and dealing with health, environment and safety risks, and it allows periodic reviews and frequent upgrading. Every Chevron business unit investigates its procedures to detect risks. The data from the investigation is analyzed, action plans are well-defined and phases are used to decrease the risk.

Chevron has wide-ranging practices and techniques in position to manage and assess the risks of oil and gas yield. They are dedicated to progressing safe drilling processes through their well design procedure, and projected modifications in well design are handled through a structured change-management procedure (Chevron, 2012).

According to (Chevron, 2012) refining petroleum contains a multifaceted network that operates to produce many of barrels of fuel each day. Chevron emphasizes the utmost importance on individual and procedure safety at their processing plant during all shifts ensuring the safe and consistent operation of their facilities. They have laborious platforms in place to detect, manage and reduce risk including regular, routine equipment checkups, system and process risk documentation assessments and comprehensive employee training.

This is an innovative approach to maintenance management because Chevron managers can accurately predict what risks might occur as well as when they have to apply optimal replacement cost of a part in the system to avoid total failure and generate more gross profit.

4.4.8 Legal and other requirements

An organization that uses legal acts to protect their assets is the Tiger Brands organization. They use copyrights on their brand, patents and trademark to ensure that no other organization may profit from using their assets such as their website or html coding. They also use the consumer law to protect themselves from lawsuits by consumers, following high standards in their food processing and distribution activities. The information supplied on their website is only for information purposes.

According to their terms and conditions the consumer without any legal aid to his/her disposal is entitled to reject defective goods sold to them by a chain-supermarket which was supplied with Tiger brand goods within a certain time. The consumer may demand that the product should be repaired or replaced or be repaid with their money already paid for the product.

They make use of the disclaimer on messages and emails they send informing the reader that the message containing the information is confidential and could rise to a legal matter and that illicit use is forbidden and could be illegal. Also it is stated that the message is for information purposes only and may contain the personal views and opinions of the author, which are not necessarily the views and opinions of Tiger Brands Limited or its subsidiaries and associated companies. Therefore it is indicated that Tiger Brands consequently does not admit liability for any claims, loss or damages of whatever nature, arising as a result of the reliance on such information by anyone. (Tiger Brands, 2013)

4.4.9 Management of change

A management of change that was successful is the privatization of British Airways. Firstly British Airways as a public enterprise was struggling with problems such as political issues, overemployment and low productivity. Privatization was driven by the increase in losses each year. During 1981, British Airways appointed a new C.E.O. and during that time expenses were more than the income. This C.E.O. observed that the organization was very unproductive and was wasting a lot of valued assets. This C.E.O. decided to reinvent and reorganize the whole organization in order to make it more lucrative. He understood that the unsurpassed way to do this was through the change management plan. (Eckel and Singal,1995)

It can be observed that after privatization of British Airways that the organization’s financial position increased dramatically. The personnel had the ability to effectively deal with the change within the organization. Innovation is brought forward by the leadership of the CEO that challenged the status quo of the situation that British Airways had where more expenses were more than the income. The C.E.O had a vision, a greater sense of purpose although he was grounded by the reality and the negative impacts management of change would bring to the organization such as people losing their jobs and new competition for his position. Through setting an example of hard work and ethical standard British Airways was saved from being a ‘white elephant’ to the British Government and transformed into a globally successful organization.