Beruflich Dokumente
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Introduction to
Network Asset Management Guidebook
Foreword
I was delighted to be asked to write the foreword to this guide which I hope will provide practical
guidance to help organisations in the electricity industry on their Asset Management journey.
When I first visited the region a few years ago, not many people were talking about Asset Management,
let alone implementing Asset Management Systems in accordance with PAS 55. There were a few early
adopters like MTR and CLP in Hong Kong but these were the exceptions not the rule.
Over the last few years we have seen a significant increase in activity. I was pleased to present to the
6th LMS Harmonisation Forum on Asset Management in Bangkok in 2012. It was clear at that event that
interest in Asset Management was increasing across the region and this guidebook is a timely document
to support organisations in the region.
The IAM has been at the forefront of the discipline of Asset Management for 20 years and is committed
to the development and dissemination of Asset Management knowledge, training and good practice
wherever in the world there is a demand. We were delighted that our first international chapter was
launched in Malaysia in 2013 which represents the culmination of a number of years efforts from people
and organisations committed to developing Asset Management in the LMS Region.
Asset Management can play a vital role in addressing many of the challenges being faced by asset
intensive businesses around the world. These challenges include:
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1. Late Mr. Hardanjit Singh Gosal: An Asset Management Expert who guided LMS Technical Working
Group #4 (Asset Management); laid the foundation of this guidebook by conceptualising its key
contents; and wrote three chapters.
2. LMS Technical Working Group #4: The following members of TWG #4 (Asset Management) were
involved in reviewing the first draft of contents and sharing their insights, which all helped to
improve this guidebook by many folds.
Suraphol Wiboonwipa
Director of Power System Maintenance
Department, MEA
Chairman
Ms. Janram Santiwongse
Project Manager - International Service, MEA
Secretary/Coordinator
Khun Chanthea
Deputy Chief of Distribution, Technical Office
EDC
Heuangsixayphone Dalasene
Deputy Director, Transmission System
EDL
Sornchai Buakaew
Chief of Substation Equipment #1, Substation
Substation Equipment Maintenance
MEA
Kitti Leangkrua
Asst Manager, Power System Maintenance Division
PEA
Ho Viet Thong
Dy Director, Technical Department
EVNHANOI
Ms Dang Thi Lan Huong
Expert, Purchasing & Material Dept
EVNHCMC
Pham Quang Hoa
Dy Director, Technical Department
EVNNPC
Nguyen Phi Loc
Expert, Technical Department
EVNCPC
Tran Cong Dien
Expert, Technical Department
EVNSPC
Piyadith Lamaisathien
Country Manager Thailand
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Table of Contents
Foreword 1
Acknowledgements 2
Preface 10
1
2
3
Chapter 1: Introduction
1
Objective and target readers
2 Scope
2.1
Depth and breadth of contents: Foundational
2.2
Focus on physical assets (distribution network)
2.3
Structured around PAS-55
3
Outline of contents
3.1
Four-step journey
4
How to use this guidebook?
Chapter 2: Assets, Asset Management, Drivers, Benefits, Principles and Standards
1
Assets: Definition, types and hierarchy
2
Asset management: Concept, definition and expanded understanding
2.1
Concept: Balance between cost, performance and risk
2.2
Definitions in PAS and ISO
2.3
Grounds-up understanding (answers to key questions)
2.4
What is not asset management?
3
Why asset management? Drivers and benefits
3.1
Drivers behind asset management
3.1.1 Aging infrastructure
3.1.2 Pressure to reduce losses
3.1.3 Capital constraints
3.1.4 Higher performance expectations
3.1.5 Need to manage risk
3.1.6 Bearing on regional and national development
3.1.7 Deregulation of power market
3.1.8 Tightening regulations
3.1.9 Pressure of growing demand
3.2 Benefits of asset management
3.2.1 Achievement of organisational strategic objectives
3.2.2 Higher performance and stakeholder satisfaction
3.2.3 Improved risk management and compliance
3.2.4 Sustainable high performance
4
Core principles of asset management
4.1
Line of sight: Alignment with strategic business objectives
4.2
Lifecycle management
4.3
Risk management
4.4
Systematic process
4.5
Focus on all time horizons: Short, medium and long
5
International standards/specifications of asset management
14
18
5.1
PAS 55 specification
5.2
ISO 55000 series of standards
5.3
Alignment between PAS 55 and ISO 55000
Reflections and actions
6
Chapter 3: Asset Management Framework
30
1
Overall framework of asset management
2
Foundation of framework: Policy, strategy, objectives and plan
2.1
Asset management policy
2.1.1 What should a policy cover?
2.1.2 Industry examples
2.1.3 Tips for drafting an effective asset management policy
2.2 Asset management strategy
2.2.1 Guidelines for forming an effective strategy
2.2.2 Industry example
2.3 Asset management objectives
2.3.1 Guidelines for setting objectives
2.3.2 Industry example
2.4 Asset management plan
2.4.1 Key features of asset management plan
2.4.2 Contingency plan
3
Alignment with other management systems: Plan-do-check-act
4
Reflections and actions
Chapter 4: Key Enablers of Asset Management Programme
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1
Key enablers of asset management programme
1.1
Suitable organisational structure for asset management programme
1.1.1 Top managements commitment
1.1.2 Clear responsibilities
1.1.3 Documented and communicated
1.1.4 Three-part organisational model
1.2
Outsourcing of asset management activities
1.3
Training, awareness and competence
1.4
Communication and consultation
1.5 Documentation
1.6
Information management
1.6.1 PAS 55-1: 2008 recommendations
1.6.2 Status of information systems in LMS utilities (a snapshot)
1.7
Risk management
1.7.1 Types of risks in distribution business
1.7.2 Risk management process
1.7.3 PAS 55-1:2008 guidelines
1.8
Legal and other requirements
1.9
Management of change
2
Reflections and actions
Chapter 5: Implementation, Review, Continual Improvement, Transformer, Cable and MV
Switchgear Asset Management Programme
52
1 Implementation
2
Life cycle based management
2.1
Life cycle management: The big picture
2.2
Create / acquire new assets
2.2.1 Planning Stage
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3
4
5
6
9
Chapter 6: Case Studies
1
Case study: CLP Power, Hong Kong
1.1
Snapshot of CLP Power
1.2
Key driver behind adopting asset management: Market reforms
1.3
Asset management journey: Key Steps
1.3.1 First step: Restructuring of organisation
1.3.2 Strategic Asset Management (SAM) model
1.3.3 PAS 55 certification
1.3.4 Continuous improvements
1.4
Benefits of asset management programme
1.5
Lessons on asset management from CLP Powers experience
1.5.1 Sustained organisational commitment
1.5.2 Alignment of policy, plans and actions
1.5.3 Change management
1.5.4 Special communication mechanisms
1.5.5 Robust information system
2
Case Study: The Chugoku Electric Power Company, Inc. Japan
2.1
Overview of Chugoku
2.2 Assets
2.3
Maintenance processes
2.4
Asset facility and historic information management
2.5
Countermeasures for aging assets
3
Case study: Asset Management Plan of SP AusNet
3.1
About SP AusNet
3.2
Key drivers
3.3
Vision, mission and objectives
3.3.1 Vision
3.3.2 Mission
3.3.3 Objectives
3.3.4 Network performance KPIs
3.4
Key asset management strategies
3.4.1 Risk management
3.4.2 Condition monitoring
3.4.3 Asset maintenance
3.4.4 Information management
3.4.5 Operations management
4
Transformer life cycle management by Eskom Distribution, South Africa
4.1
Eskom Distribution
4.2
Eskoms transformer fleet
4.3
Eskoms transformer life management process
4.3.1 General assessment
4.3.2 Focused assessment
4.3.3 Conclusion
5
Reflections and actions
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82
Figures
Fig. 1.1:
Fig. 2.1:
Fig. 2.2:
Fig. 2.3:
Fig. 2.4
Fig. 2.5
Fig. 2.6
Fig. 2.7:
Fig. 2.8:
Fig. 2.9:
Fig. 3.1:
Fig. 3.2:
Fig. 4.1:
Fig. 4.2:
Fig. 4.3:
Fig. 5.1
Fig. 5.2:
Fig. 5.3
Fig. 5.4
Fig. 5.5
Fig. 5.6:
Fig. 5.6:
Fig. 6.1:
Fig. 6.2:
Fig. 6.3:
Fig. 6.4:
Fig. 6.5:
Fig. 7.1:
Fig. 8.1:
Fig. 8.2:
Structure of Guidebook
Five Types of Assets
Focus of Guidebook Medium Voltage Power Distribution Assets
Hierarch of Assets
Asset Management Striking a Balance between Cost, Performance and Risk
Power System Losses (LMS utilities)
Growth in Demand of Power in LMS Utilities
Asset Management Leads to Performing and Sustainable Organisation
Key Principle of Asset Management: Line of Sight between Organisations
Strategic Plan and Asset Management
Key Principle of Asset Management: Lifecycle Management of Assets
Overall Framework of Asset Management System
PDCA Framework of PAS 55
Key Enablers of Asset Management Programme
Three-Part Asset Management Organisational Model
Risk Management Process
Asset Life Cycle
Alignment from Corporate Objectives Down to Life Cycle Strategies of
Network Equipment
Maintenance Strategies Based on Asset Condition and Importance
Two-Tier Condition Based Maintenance Programme
Transformer Health Index
Transformer Criticality Assessment
Transformer Criticality Assessment
Mapping of CLPs PAS 55 Assessments
Impact of Asset Management Program on CLP Powers Performance
Chugokus Maintenance Cycle for Existing Assets
Chugokus Countermeasures for Aging Assets
Escalation Process for Excessive Moisture in Transformers
Asset Management Maturity Scale
Process for Establishing Risk Management Framework
Map of GAP Analysis (PAS 55)
Tables
Table 4.1: Areas of Competency for Asset Management
Table 4.2: Categories of Risk and Response
Table 5.1: Status of Maintenance Strategies in LMS utilities
Table 5.2: MEAs percentage of transformer failure rate
Table 5.3: MEAs failure cause assessment
Table 6.1: Criteria for Replacement
Table 6.2: Asset Registry
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16
19
19
20
21
24
25
26
27
27
31
38
41
43
47
53
54
59
61
61
71
72
84
84
87
89
96
98
128
130
44
49
62
70
70
88
88
Preface
The application of asset management in power utilities dates back to 1990s when it was first introduced
for managing power generating assets. For transmission and distribution (T&D) side of the business,
however, it was early/mid 2000s when utilities started considering asset management as one of the
strategic priorities. With the publication of PAS 55 specification on asset management by British Standards
Institution (BSI) in 2004 and the subsequent revision of this specification in 2008, asset management
became a recommended practice among all utilities (including gas and water utilities). In Asia, CLP Power
of Hong Kong is credited to be the first Asian utility to receive PAS 55 certification (2007). In 2014, the
first ever series of ISO standards on asset management (ISO 55000) has been published.
The publication of this guidebook is, therefore, timely, and in step with the evolving importance of
asset management for asset-intensive industries. Today, asset management has progressed to a level of
maturity where an ample body of knowledge on proven asset management principles and practices is
now available and can be used applied beneficially.
The challenge, therefore, is not the lack of information on asset management, but rather too much of
it, often distributed across hundreds of articles, presentations, web sites and books. In addition, the
available information can often be generic (like PAS specifications) or applicable only to the developed
countries and not contextualised to suit the specific needs of the LMS power distribution industry.
Further, the information may be presented in a complex manner or in a much too simplified manner (like
bullet points in PowerPoint presentations).
The purpose of this guidebook is to overcome the above challenges and provide the power industry
professionals from the Lower Mekong Sub-region (LMS) with the most relevant knowledge on asset
management in a consolidated, easy-to-understand and systematic way. With this guidebook, the LMS
professionals can quickly get up to the speed in their understanding of what asset management is all
about; why it matters and what exactly needs to be done to implement a full-fledged asset management
system.
As LMS professionals gain new knowledge on asset management and implement its principles and
practices, the LMS power distribution utilities, in turn, stand to benefits in at least the following ways:
As each of the LMS utilities moves to the next level of asset management, together they would also
achieve a bigger goal: Greater harmonisation among LMS power distribution systems.
10
To understand the origins of this guidebook and its significance for the LMS countries, it is important
to step back and shed some light on the LMS harmonisation programme that began in 2005.
The Lower Mekong Sub-region (LMS) is shared by Cambodia, Lao Peoples Democratic Republic (Lao
PDR), Thailand and Vietnam, the four countries that also have strong economic inter-dependence.
Recognising that harmonisation of the power distribution systems among the LMS countries can
accelerate their economic growth, a Memorandum of Understanding (MOU) was signed among six
partners in 2005. Under the MOU, these partners agreed to work together towards the harmonisation
of power distribution systems in the four LMS countries: Cambodia, Lao PDR, Thailand and Vietnam.
Currently, the harmonisation programme includes the following 10 partners:
Cambodia
Electricit du Cambodge (EDC)
Lao PDR
Electricit du Laos (EDL)
Thailand
Metropolitan Electricity Authority (MEA)
Provincial Electricity Authority of Thailand (PEA)
Vietnam
Central Power Corporation (EVNCPC)
Hanoi Power Company (EVNHanoi)
Ho Chi Minh City Power Company (EVNHCMC)
Northern Power Corporation (EVNNPC)
Southern Power Corporation (EVNSPC)
International
International Copper Association Southeast Asia (ICASEA)
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Customer service
External funding
Functional training
Loss reduction
Power quality
Undergrounding
Next, a strategic roadmap (for period 2005/2006 to 2014) was prepared, which envisaged the
development of standard processes along the following six tracks:
Track 1: Transformers
Track 2: Power cables
Track 3: Underground cabling design, construction and installation
Track 4: Conversion of overhead to underground cabling
Track 5: Asset management
Track 6: Demand Side Management (DSM)
To date, four technical working groups have been functioning on the above tracks:
1.2 Guidebook: Key milestone for Technical Working Group (TWG #4)
The objectives of TWG #4, which is responsible for the Asset Management Best Practices,
are as follows:
Hosting of 6th LMS Harmonisation Forum (Bangkok, June 2012) dedicated to International
Standards & Best Practices in Asset Management.
Step 2: Developing framework
One-on-one coaching and mentoring sessions for each of the power distribution utilities.
With the publication of this guidebook, TWG #4 has achieved one of its important milestones.
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LMS utilities provide the most critical ingredientelectric power--for the economic development
of the LMS region. But these utilities face several challenges to their functional and financial
performance, and long-term sustainability. Most of these utilities have been operating for several
decades now, and, as a result, significant portions of their network infrastructure are aged.
Operating with aging equipment is not unusual, but unless managed well (i.e., operated, maintained,
disposed and replaced), these aged assets can lead to reliability problems or power quality problems
or consume disproportionate amounts of operating and maintenance costs or create huge spikes
of CAPEX expenditures in the future. In addition, these utilities also face other challenges, such as
capital constraints, relatively high T&D losses, high growth in demand for power, rising customer
expectations, increasing regulatory oversight, etc.
How effectively these utilities overcome the above challenges would also influence the trajectory of
the economic development of the LMS region. Stakes are high.
Technical Working Group #4s original intent behind this guidebook was that it should serve as the
first step towards application of asset management principles in their simplest form.
This guidebook, which contains eight chapters, offers understanding of the following key aspects of
asset management:
With the hope that this guidebook would help to fulfil TWG #4s original intent as mentioned above,
here is one final note:
One of the most important aspects of asset management is that it cannot be something the utilities
do on the side as one of their multiple activities; rather it must be the way the utility does business.
Asset management thinking must underlie every activity, every action and every decision that a
utility undertakes.
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Chapter 1: Introduction
1 Objective and target readers
The main objective of this guidebook is to raise the awareness about the key principles, benefits and
practices of asset management across power distribution utilities in the LMS region. By raising the
awareness, this publication aims to serve as the first step towards application of asset management
principles in their simplest form.
Based on the range of topics covered and the simplified way in which many of the complex issues
have been explained, this is a useful resource of all professionals, from top management to the
functional-level staff. For the top and senior management, it provides an understanding of the
overall framework of asset management and its benefits, and how asset management is directly
coupled with an organisational strategic plan. For middle-level management and functional level
staff, it provides insights into key asset management practices, such as life cycle based management,
risk management, asset registry, condition based maintenance, reliability centred maintenance, etc.
2 Scope
The scope of this guidebook is defined below from three different angles: Depth and breadth of
contents, types of assets and reference standard.
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Human assets
Financial assets
Information assets
Intangible assets (reputation, image)
This guidebook, however, is focused on the physical assets, and more specifically, on the
following key assets that typically form part of power distribution networks:
MV distribution transformers
MV overhead and underground cables
MV switchgear (circuit breakers, protection relays, etc.)
3 Outline of contents
The guidebook includes eight chapters, which are arranged in the following structure:
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The purpose of this guidebook is to provide the foundational knowledge to enable LMS utilities
to advance their asset management programmes. At the end of each chapter is a short section
titled, Reflections and actions. The purpose of this section is to enable readers to review their own
situation in the light of the new knowledge acquire from the particular chapter and identify few
specific action steps to move forward.
To get best value out of this guidebook, please read, reflect on it and then act.
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In general, an asset is anything that brings value to the owner, but in the context of asset
management, PAS 55-1:2008 (more about this specification in item 5) defines an asset as:
Plant, machinery, property, buildings, vehicles and other items that have a distinct value to the
organisation.
Although PAS 55-1:2008 is primarily focused on physical assets, it also recognises that an
organisation holistically owns five different types of assets. Besides physical assets, the other four
assets are human assets, information assets, financial assets and intangible assets (reputation,
morale, intellectual property, goodwill, etc.). Fig. 2.1 shows the interdependence between physical
and other assets, and how the five types of assets fit into the overall business context.
When it comes to power distribution utilities, the focus is on medium and low voltage distribution
of power that flows in from high voltage transmission network, and goes out to households and big
consumers like industries (Fig. 2.2). Their main physical assets are:
MV distribution transformers
Primary (e.g., 33/11 kV)
Secondary (e.g., 11/0.4 kV)
MV power distribution cables (overhead and underground)
MV distribution switchgear (circuit breakers, protection relays, etc.)
SCADA control system
Other assets (building, test instrument, etc.)
The focus of this guide is on the top three assets listed above.
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High
Voltagea
Power Plant
Generates Electricity
Transmission Lines
Carry Electricity
Long Distances
Transformer
Steps Up Voltage
For Transmission
Medium
Voltagea
Household
Voltagea
Distribution Lines
Carry Electricty
To Houses
Neighborhood
Transformer
Steps Down Voltage
Source: PAS 55-1:2008, Asset Management (Part 1: Specification for the optimised management of physical asssets), BSI, 2008
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Further, as shown in Fig. 2.2, depending on the scope of operations of a power distribution utility,
the focus of its asset management programme would vary from individual assets (e.g., individual
transformers, distribution circuits) to asset systems (e.g., networks comprising transformers, cables
and switchgear serving specific villages or towns or factories) to asset portfolios (the whole fleet of
distribution networks under several divisions of a company).
Asset portfolio
Asset systems
Individual assets
What exactly is asset management? To achieve greater clarity, it is better to start with the basic
concept.
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In essence, asset management for power distribution utilities is about achieving a balance
between three key parameters: performance, cost, and risk. Performance means quality,
reliability and availability of power. Cost covers the complete life cycle from acquisition of
asset to operation and maintenance to disposal. And risk involves not only the risk of failure
or non-performance, but also the risk of safety, environmental and other regulatory noncompliances. The three parametersperformance, risk and costinterplay with one another.
So attempt to achieve very high level of performance can jack up the cost while increasing risk
appetite can reduce the cost. Similarly, squeezing the cost, say maintenance cost, can affect
the performance as well as increase the risk.
Risk of not meeting
performance
requirements, noncompliance with
regulations
Risk
Cost
Performance
Reliability, power quality,
Fig. 2.4 Asset Management Striking a Balance between Cost, Performance and Risk
But its important not to view the goal of achieving the balance between cost, performance and
risk as not an end in itself. This balancing act is a means to a bigger goal, which is to enable a
power distribution utility to achieve its strategic business objectives.
The purpose of asset management is to help an organisation achieve the objectives of its
strategic plan.
Asset management involves striking a balance between three conflicting priorities: Asset
performance, risks and expenditures.
Asset management covers complete life cycle of asset and asset systems. In that sense, it
is not limited to one specific phase of asset life cycle, say, maintenance or operations.
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Value
What do our customers expect from us?
Whats the contribution of our assets to the value organisation creates for our customers?
Are we getting the most value from our assets?
How could we get more value for money from them?
Cost
Do we have some assets or asset systems that have become unprofitable or too
expensive?
Risks and compliance
Are we confident that the risks of our assets causing harm to people and the environment
are tolerable and at accepted levels?
Do we have a clear asset management policy, strategy and plan to ensure that we manage
our assets in a sustainable way? Are these in alignment with organisations strategic plan
and objectives?
Can we readily evaluate the benefits (performance, risk reduction, compliance,
sustainability) of proposed work or investment and, conversely, quantify the total impact
to the organisation of not performing such work, not investing or delaying such actions?
Do we have appropriate processes for such an analysis?
Are we continually improving our asset management system performance, and realising
the benefits of the improvements? Do we know what and where improvements will be
most effective?
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New developments
Are we optimising our asset management processes and techniques in light of the latest
developments in technology and field of asset management?
Quality of information
How accurate and precise is the available information on the above questions?
Can we answer all of these questions confidently, with a clear audit trail, and demonstrate
the answers to our stakeholders?
Why should a power distribution utility adopt a formal asset management system? This is an
important question because unless an organisation achieves clarity on why, it is unlikely to fully
commit itself to an asset management programmeand realise its full benefits. To answer why,
however, one needs to explore the following two sub-questions:
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15.3
13.7
11.98
10.78
3.6
2006
2007
10.32
10.14
3.14
3.46
3.39
3.44
3.51
2008
2009
2010
2011
2012
EDC
EDL
HANOI
HCMC
NPC
CPC
SPC
MEA
Source: LMS Harmonisation Phase 2 Study. Presented at 7th LMS Harmonisation Forum in September 2013.
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8,000
2004
2011
6,800
7,000
6,000
5,000
5,000
4,095
4,000
3,000
2,670
2,028
2,000
1,000
0
1,582
1,500
273 409
EDC
251
750
327
EDL
HCMCPC
HNPC
MEA
EVNNPC
EVNCPC
EVNSPC
Source: LMS Harmonisation Phase 2 Study. Presented at 7th LMS Harmonisation Forum in September 2013.
Presentation by EVN HCMC titled, 6th Lower Mekong Sub region Harmonisation Forum
25|
Output Performance
Performance but
Performing
Unsustainable/
Sustainably &
Uneconomic
Economically
Under
Performing
Promising
Source: AMCL
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The whole concept of a successful asset management programme rests on certain key principles.
Asset Management
Policy
Other Policies
Asset Management
Strategy
Asset Management
Objectives
Asset Management
Plan
Work Execution
Fig. 2.8: Key Principle of Asset Management: Line of Sight between
Organisations Strategic Plan and Asset Management 6
Operate
Dispose
Maintain
Fig. 2.9: Key Principle of Asset Management: Lifecycle Management of Assets
Source: AMCL
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For any organisation, one of the key milestones in the journey of asset management is formal
certification of its asset management practices against internationally recognised specifications/
standards. Such a certification reflects that an organisation is managing its assets following
internationally proven and accepted best practices. In this context, the asset management team
should be aware of the following two international specifications/standards:
PAS 55 specifications
ISO 55000 series of standards
The specification is structured around the Plan-Do-Check-Act cycle, which is the process
typical of ISO standards.
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which one has so far dominated our operations and business? In other words, which of the
three we pay most attention to and which one currently receives least attention?
What are our answers to the questions listed in item 2.3 (Grounds-up understanding)?
Of the various drivers listed, which ones apply to our business most?
Which are the top three benefits that matter to us most?
Do we currently observe line of sight principle between organisational strategic objectives
and our asset management policies?
How can we spread better understanding of asset management, and its drivers and benefits
among our staff?
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Explains the relationship between high-level organisational plan and asset management system;
Introduces the overall framework of an asset management system
Explains the four key foundational elements of an asset management system framework
The discussion about an asset management framework should start with a utilitys strategic business
plan because, as highlighted in the previous chapter, asset management system in itself is not
the end; it is means to a bigger goal: achievement of an organisations strategic business plan7. A
strategic business plan is a high-level roadmap, which essentially sets out the long-term direction of
an organisation, and it comprises the following key elements:
Values (What does an organisation stands for? Which key principles guide its decisions and
actions?)
Objectives (What are the specific long-term goals that it plans to achieve?)
Strategy (How will it achieve its objectives?)
As an example of the first two items in the list above, here are the vision and mission of Hochiminh
City Power Corporation (EVN HCMC).
Vision: Become the top enterprise in power supply sector with high prestige and quality in Vietnam
and in the region.
Mission: Fully respond to customers demand for electricity with high quality and perfect services.
Taking the direction and inputs from organisational strategic plan, asset management systems
policy, strategy, objectives and plan are prepared. Together these four elementspolicy, strategy,
objectives and planform the foundation of an asset management system. Everything else down
the line flows from these four elements.
7
Definition of organisational strategic plan (PAS 55-1:2008): Overall long-term plan for the organisation that is derived from,
and embodies, its vision, mission, values, business policies, stakeholder requirements, objectives and the management of its
risks.
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Covered in Chapter 4
Implementation
Covered in Chapter 5
Covered in Chapter 6
With enablers in place, an organisation is ready to implement its asset management system, which is
the next element of the framework. Under implementation, all types of assets are managed through
practices covering the entire life cycle of assets.
Finally, to ensure the system remains on track and it improves over time, the last element in the
framework is review and continuous improvement.
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As shown in Fig. 3.1, this chapter covers the details of the foundational elementspolicy, strategy,
objectives and planand subsequent chapters cover the rest of the elements of the asset
management framework.
Typically, many utilities have some form of asset management going on in the form of inspection
and maintenance activities, practices to follow standard technical specifications for equipment or
carrying out failure investigations, but few have the whole asset management framework in place.
This framework, however, is the key to deriving the full benefits of an asset management programme.
The effectiveness of a utilitys asset management system and consequently the health of its business
depend on the following four key elements that form the foundation of its asset management
framework:
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Involvement of stakeholders: Discuss the draft policy with the relevant managers,
employees and other stakeholders, and amend according to their valid inputs to achieve
an appropriate level of consensusand commitment.
Communicate: Once ready, communicate the policy to all relevant stakeholders,
including contracted service providers. Awareness of policy is the key to enabling
people appreciate an organisations commitment to its asset management system.
Basically, the policy is about the broad intent (or direction) whereas strategy is about the right
path to fulfil that intent.
Specific, clear and detailed: The strategy should provide sufficient information
and direction to enable preparation of specific asset management objectives and
plans.
34
Key contents: Strategy should include the desired outcomes / targets, broad plans,
resources, timelines and responsibilities.
Life cycle management: The strategy should consider life cycle management
requirements of the assets.
Risk: Strategy should also take into account the risk associated with a power
distribution companys assets, services, customers, employees, etc.
9
Source: Publicly available Asset Management Plan (AMP) of Powerco Limited, a power distribution company in New Zealand.
The strategies described above are the edited version of the full range of strategies that are listed in the AMP
35|
Safety: Keep the public, our staff and our contractors from harm.
Reliability: Deliver reliable network that meets the needs of our customers.
Asset stewardship: Enhance asset management capability to the benefit of our
customers.
36
The above broad objectives lead to further specific targets and goals:
Safety
Injuries to public (target: 0)
Lost-time injuries (target: 0)
Reliability
SAIDI: (target: 210 minutes)
Asset stewardship
AMMAT 11 score: 2.9 by 2018
Cost efficiency
Capacity and asset utilisation measured by dividing peak zone substation demand
by aggregate transformer capacity (target: 50%)
Responsibilities: The responsibilities, roles and authorities of different people who would
be executing the plans.
Consistency: All plans should be consistent with the asset management strategy
and objectives.
Hierarchical scope: At a very high level, asset management plans cover entire fleet
of assets (whole MV networks comprising substations; overhead and underground
cables; and transformers). Drilling further down in each area these plans specific
activities to be performed on individual assets and asset systems.
Communication: The asset management plans should be communicated to all
relevant stakeholders with an appropriate level of details.
Periodic review: The asset management plans should be reviewed periodically to
ensure that they remain updated and effective.
10
Source: Publicly available Asset Management Plan of Powerco Limited, a power distribution company in New Zealand
11
AMMAT: Asset Management Maturity Assessment Tool (Prescribed by regulatory authority in New Zealand)
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plans. These plans establish processes for identifying and responding to incidents and
emergency situations, and maintaining the continuity of critical asset management
activities. Contingency plans should include:
The framework of asset management system specified in PAS 55-1:2008 is based on PDCA (Plan-DoCheck-Act) framework, which is the basis of many other international standards. Thus, following PAS
55 enables an organisation to align its asset management system with other management systems
(e.g., ISO 9000 for quality, ISO 14000 for environment, BS OHSAS 18001 for occupation health).
38
Plan: Establish the asset management policy, strategy, objectives and plans.
Do: Establish the enablers for asset management (e.g., asset information management system)
and implement the asset management plans.
Check: Monitor and measure results against asset management objectives and report the
results.
Act: Take actions to ensure that asset management objectives are achieved and to continually
improve the asset management system.
What is our vision? What is our mission? What are our values? What are our key strategic
business objectives? What is our strategy to achieve the objectives? Why all these elements
matter for asset management?
Do we possess all the four foundational elements of an asset management framework?
How can we formulate/fine-tune an asset management policy, strategy, objectives and plan?
Are our asset management objectives/goals measurable?
What is our emergency response plan?
How can we raise the awareness of our asset management plan among all stakeholders?
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Explains the following eight enablers: organisational structure, outsourcing, training, communication,
documentation, information management, risk management, legal and other requirements, change
management.
Asset management policy, objectives, strategy and plancovered in the previous chapter--together
are like a blueprint of an asset management system. But a blueprint is not a building. For successful
implementation of an asset management system, an organisation needs to put in place certain
systems, processes and structures, known as enablers in the PAS 55-1:2008 terminology. Without
these enablers, the whole asset management programme could be derailed due to lack of resources,
conflicting priorities, lack of communications, exposure to unmitigated risks, etc.
To ensure smooth, effective and efficient implementation of an asset management system, PAS 551:2008 recommends the following enablers:
Organisational structure
Outsourcing of asset management activities
Training, awareness and competence
Communication, participation and consultation
Documentation
Information management
Risk management
Legal and other requirements
Management of change
As shown in Fig. 4.1, with the support of these enablers, an asset management system moves from the
concept stage into actual implementation mode. The following sections describe each the nine enablers.
40
Management of change
Compliance
Risk management
Information management
Documentation
Communication
Training awareness
Outsourcing activities
UNDER IMPLEMENTATION
Org. structure
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Asset owner
Asset manager
Asset service provider
Asset owner focuses on overall corporate strategy and takes care of financial, technical
and risk criteria. Asset manager translates these criteria into multi-year asset plans and
budgets. Asset service provider executes the plans and provides feedback on costs and
performance.
Fig. 4.2 shows conceptual model of the three-part structure. This model is a departure
from the traditional top-down model in which the power resides at the top and the
responsibility of the three key functionssetting overall direction, planning and
executionis often mixed and diluted.
42
Asset
Service
Provider
Asset
Owner
Asset
Manager
Key Responsibilities
Asset Owner
Setting direction: Corporate
policy, strategy, objectives,
stakeholder interface
Asset Manager
Planning: Planning (operations
and maintenance), risk
management, life cycle
costing, project evaluation
Responsibilities within the organisation for managing the outsourced processes and
activities.
Processes for the sharing asset management knowledge and information between the
organisation and the contracted service providers.
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Management
Engineering
Information Management
Business strategy
Regulatory strategy
Organisational design
Process design
Resource planning
Financial risk
Planning
Design
Construction
Operations
Maintenance
Inspection and testing
Data analysis
Reliability
Technical risk
Business intelligence
Asset registry
Knowledge management
44
Beyond communication, asset management team should consult with relevant stakeholders for the:
1.5 Documentation
The success of an asset management system also depends on how uniformly and consistently
its policies, procedures, results, etc. are communicated, understood, followed and available
for future reference. A well-structured documentation system is also an important enabler.
PAS 55-1:2008 recommends that an organisation should establish a proper documentation
system, which should include the description of asset management policy, strategy, objectives,
procedures, records and other key elements of the asset management system. The organisation
should document all such procedures and operating criteria whose absence in the written
form could jeopardise the effectiveness of the asset management system.
The documents should be kept updated (including version control) through periodic review and revision.
The documentation system, however, should not become an end itself: The extent of
documentation should be proportional to the level of complexity and risks being managed.
It should be kept to the minimum required for effectiveness and efficiency of the asset
management programme.
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developed applications, a large number of separate databases, and a large amount of data that
is not in electronic format.
46
Each organisation has to assess its risks in the all-round context of its geographical
location, security situation, age of assets, competence of manpower, robustness of
information systems, overall systems, processes and practices, etc.
Risk assessment
Risk identification
Risk analysis
Risk evaluation
13
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Establishing context
This step is about setting the parameters or boundaries around an organisations
risk appetite and risk management activities. It requires consideration of both
external and internal risk-related factors. External factors include social, cultural,
political and economic issues, while internal factors involve strategy, resources
and capabilities.
Risk evaluation
Based on the risks analysis, specific risks are evaluated to ascertain the level of
response (what to do, who will approve, when should be the next review). The
evaluation also takes into account any controls in place. A control is any policy,
practice or device that is supposed to modify (i.e., reduce or eliminate) a risk.
48
Medium risk
Condition-based maintenance
Both on-line condition monitoring and off-line
refurbishment
diagnostics
Calendar-based maintenance
Table 4.2: Categories of Risk and Response
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Coverage of risks
As a minimum, the following risks should be considered over the entire life cycle of
assets:
50
Out of the nine enablers, which ones do we have? Which ones do we need to create?
How different is our organisational structure from the model suggested in this chapter?
Do we have formal processes for communication and consultation?
How robust is our information system? Does it provide real-time information on the
performance and condition of all critical assets?
Is the required information easily accessible by all relevant people?
What are the key risks in our particular business that matter most and can cause significant
damage if not managed?
What is our current risk management process and how can we strengthen this process?
Do our current risk mitigation measures take into account an objective evaluation of risk?
Moving forward with asset management programme involves significant changes to our
traditional way of doing things. How should we prepare our staff to embrace the change for
the better?
Over the short-term, what specific actions can we take to strengthen at least three enablers in
our operations?
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1 Implementation
Asset management plans define the activities and deliverables to be achieved, people responsible
for implementation, schedules, resources required, and monitoring and control mechanisms. While
implementing these plans, utilities should take into consideration the following three key factors that
affect the efficiency of implementation and mitigation of risks:
Constraints: The execution of plans should take into consideration the various technical,
operational, accessibility and financial constraints. For example, many asset-related maintenance
and upgrading activities often take place during the late night hours or during weekends to avoid
disrupting the power supply to the customers.
Monitoring and control: Monitoring of progress, variations, projections for the future and
necessary revisions to the plans should be an ongoing affair. Where necessary, the asset
management team should re-prioritise the work or change allocation of resources in order to
optimise the plan delivery when encountering unanticipated events.
Up-to-date information: As the plans are executed, asset information (condition, expenditures,
parameters, failures, etc.) should be updated and recorded on continuous basis.
If there is one strategy that is at the heart of a successful asset management system, it is life cycle
based management of assets. The following definition of asset management in PAS 55-1:2008
underlines the focus on life cycle of assets:
Systematic and coordinated activities and practices through which an organisation optimally and
sustainably manages its assets and asset systems, their associated performance, risks and expenditures
52
over their life cycles for the purpose of achieving its organisational strategic plan.
PAS 55 defines life cycle as:
time interval that commences with the identification of the need for an asset and terminates with the
decommissioning of the asset or any associated liabilities
Over their complete life span, which can be 20-50 years, key assets of a distribution utility
(transformers, cables, etc.) go through the following four distinct phases:
Creation
Operation
Maintenance
Disposal
Create
Operate
Dispose
Maintain
Fig. 5.1 Asset Life Cycle
The asset life cycle begins at the moment when the need for an asset is identified (say, new network
for additional consumers) and extends through planning and design, procurement, installation and
commissioning, operations and maintenance--and ends with retirement and safe disposal of the an
asset.
Often due to the way organisational processes are designed and lack of knowledge about the life
cycle management, utilities end up managing assets not in seamless, but in compartmentalised way.
For example, assets are bought not based on what they would cost over their total life span, but
based on their first cost. Similarly, maintenance activities are planned based on pre-determined time
intervals instead of the condition and criticality of an asset.
The shift towards life cycle based management requires an organisation to make asset life cycle a key
consideration for all its decisions, plans and activities.
Fig. 5.5 shows how the strategies and plans for the key phases of asset life cyclecreate,
operate, maintain and disposeflow from to asset management framework, which in turn, is
guided by the corporate strategic objectives.
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Network Assets
Transformers, Cables, Switchgear & Others
(SCADA, etc)
Operate
Maintain
Dispose
Fig. 5.2: Alignment from Corporate Objectives Down to Life Cycle Strategies of
Network Equipment
It not only includes initial planning and design, but also construction and commissioning
phases.
54
One of the main objectives is to ensure that the expansion of the power system is
optimally done to sustain current demand and to meet future demand. Other objectives
include compliance with statutory, regulatory and licensing requirements, transmission
and distribution grid codes, engineering specifications, and safety and environmental
standards.
All plans should be communicated to and shared with other key departments to ensure
all proposals are integrated with departmental/division annual business plans, ensuring
a common line of sight in fulfilling the utilitys strategic objectives.
2.2.3 Procurement
Following the design stage, the procurement stage involves development of equipment
specifications for the procurement of new assets; pre-qualifying vendors; inviting bids
and carrying out technical and commercial evaluations.
The procurement specifications should cover quality assurance, type tests, factory
acceptance tests (FAT), warranty period, reference list, packing, handling and shipping
to site, application of bio-degradable or recyclable material, waste handling procedures,
and management procedures during disposal of equipment at end-of-life.
The final decision on which equipment (and technology) to procure should be based on
the best-fit-for-purpose and optimised total cost of ownership (TCO) for the duration of
an assets service life, and not solely based on the lowest first cost.
The procurement process should adhere to existing commercial, procurement and legal
policies.
2.2.4 Installation
This stage of the life cycle involves actual acquisition of assets and installation by
contractors. The installation contracts can be based on engineering-procurementconstruction (EPC) or engineering-procurement-construction-commissioning (EPCC)
works. The right choice depends on the complexity of project, available expertise and
funding.
Strong project management and contract management skills are important during
this stage to ensure that the projects are executed on time, within budget and to the
required quality.
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The international standard IEC 61936-1 ed. 2.0 Power installations exceeding 1 kV a.c.
- Part 1: Common rules, is a good guide to observe. Some key points extracted from
this document are:
Safety guidelines and tools: Particular attention shall be given to the safety of
personnel during the installation, operation and maintenance of equipment. This
may include:
Manuals and instructions for transport, storage, installation, operation and
maintenance;
Special tools required for operation, maintenance and testing;
Safe working procedures developed for specific locations.
Labelling: Identification and labelling are required to avoid operating errors and
accidents. All important parts of the installation, for example, bus-bar systems,
switchgear, bays, conductors, shall be clearly, legibly and durably labelled.
56
2.2.5 Commissioning
Before the equipment or section of the network can be commissioned and put into
service, it has to be inspected and tested to show compliance with the utilitys
specifications and ensure that it is safe to operate.
Commissioning tests, also known as Site Acceptance Tests (SAT), are tests and physical
inspections that are performed on new equipment, usually after installation and prior to
energisation. These tests are performed to determine whether a piece of equipment is
in compliance with the specifications and design, and also to establish test benchmarks
that can be used as a reference during future tests.
Site Acceptance Tests are also valuable for ensuring that the equipment has not been
subjected to damage during shipment, handling and installation. These tests typically
include visual, physical, mechanical and electrical tests.
During commissioning tests, it is advisable to constantly make reference to the
manufacturers manual and recommendations.
Many tests on electrical equipment involve the use of high voltages and currents
that are dangerous both to the people and equipment (equipment can be damaged
or destroyed by unacceptable voltages and currents). Adequate safety rules should be
instituted and practiced to prevent injury to all personnel who might be exposed to the
hazard. The test procedures used should also be designed to ensure that the testing
would not cause any damage to equipment.
Prior to commissioning the electrical equipment or section of network and putting
it into service, all data (equipment data, as-built drawings, test data, etc.) should be
captured and documented.
During the create phase, one of the goals should be to hand over assets in good
operational condition and maintainability. This would require training and knowledge
transfer on design, operations and maintenance of assets from the designers and
builders to the operational and maintenance personnel. Also, testing and commissioning
should be done based on well-defined procedures and all the results should be recorded
diligently and handed over, along with all other asset data, to the operational and
maintenance team.
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The key objective of this phase is to operate the assets to deliver the required performance
(quality and reliability of power supply) while ensuring safety. Assets considered as critical to
the network performance, availability and reliability should be made to remotely monitor and
control via SCADA.
The operating criteria (parameters to be monitored, frequency and type of monitoring, alarm
limits, etc.) and compliance requirements (legal, company guidelines, industry standards)
should be carefully defined, documented and communicated.
Where maintenance strategies are linked to operations, such strategies should be updated
when there is a change in the operating criteria. For example, if a decision is taken to increase
the loading on a transformer from 50% to 60%, its impact on maintenance and assets lifespan
should be captured before implementing such a change.
Regular communication and exchange of information between network operators and
maintenance managers, on equipment condition and reliability will assist in optimising asset
maintenance and life cycle cost.
Failures are often not analysed to the extent that similar failures can be prevented
in the future.
58
Not considered
Condition
Considered
The above maintenance strategies can be classified based on two key parameters:
condition of the equipment and its importance. Fig. 5.3 shows the mapping of various
strategies against these two parameters.
CBM
Condition Based
Maintenance
RCM
Reliability Centred
Maintenance
Continuous or
Priority list
Effect of condition and
occasional monitoring
Maintenance based on
condition
CM
Corrective Maintenance
No maintenance until
failure considered
Risk management
TBM
Time Based Maintenance
breakdown
Not considered
inspections and
maintenance
Considered
Important
Fig. 5.3 Maintenance Strategies Based on Asset Condition and Importance
Both the condition and the importance of components can be defined in many ways,
depending on the desired level of detail and the availability of appropriate data. For
example, the definition of importance may be pegged to features like the number of
feeders of a substation, or to more sophisticated indices, like the share of the energy
not supplied in time caused by failure of each respective component.
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60
Tier 1 techniques
Visual inspection
Oil sampling
Thermo & ultrasonic scanning
Tier 2 techniques
Partial discharge (PD)
Turns-ratio test
Winding resistance test
Insulation resistance
Tan delta test
Excitation current test
Frequency response analysis
Frequency dielectric spectroscopy
Selected assets
Refurbishment
Relocation
Replacement
Fig. 5.4 Two-Tier Condition Based Maintenance Programme
Functional condition:
Oil analysis, DGA,
Furan analysis,
electrical analysis
External physical
condition
Maintenance
history
Age
Transformers
Health Index
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Questions
Summary of responses
62
Criterion 4: The remaining life cycle cost of an asset is estimated to be higher than the life
cycle cost of a new asset.
Criteria 5: Failure of an asset poses a large risk to customer service or network reliability
or business reputation.
PAS 55-1:2008 recommendations
Key recommendations from PAS 55-1:2008 include:
Disposal should ensure that equipment is safely removed as planned, and that remaining
in-service equipment is left in the required operational condition. And any relevant signs
and notices are updated.
This phase should also include consideration of long-term management of similar assets,
and retention of spares, if required.
Also, it is a good practice to include review and revision of all applicable records in the
decommissioning procedures.
Guidelines for disposal
To manage the retirement, replacement and disposal of assets, the following procedure can be
observed as a guide to develop an asset replacement plan:
Identify the assets that fall within the criterion for disposal/replacement.
List assets that are considered critical to system operation and reliability.
Plan and prioritise replacement of these assets based on network criticality.
Request for a special annual budget allocation outside of the normal capital expenditure.
Cannibalise parts as critical spares from assets that are first to be replaced to keep other
similar asset in good service condition while awaiting replacement.
Select replacement assets (i.e., new assets) that offer higher efficiency, superior
performance, better reliability, lower risks, lower maintenance requirements and facilities
to add on-line condition monitoring.
Set-up a special unit to monitor and control the engineering design, project, contract
management and progress of all asset replacement projects.
Select contractors with proven track record, competency to undertake the replacement
works, including competence in safety and handling toxic waste material.
Liaise with local authorities and environmental management agency on the proper disposal
of assets that pose environmental risks.
Ensure that the asset database and system schematics are updated on commissioning of
the new replacement assets
For safe and efficient operation, monitoring and maintenance, many assets need to be supported
with various tools, facilities and equipment. PAS 55-1:2008 recommends that all such tools, facilities
and equipment should be maintained and kept calibrated, where necessary.
The organisation should establish processes for the maintenance or calibration or testing of such
tools, facilities and equipment. These processes could in turn affect the asset performance and
condition, thereby having indirect impact on the overall asset management programme.
Even if launched successfully, to remain effective and sustainable, an asset management programme
needs periodic monitoring and review. The performance assessment includes the following key
elements:
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being implemented as required and their effectiveness. Level 2 means monitoring whether the
assets are performing as expected.
4.1.3 KPIs
Key performance indicators (KPIs) are metrics that measure accomplishments or results
in specific areas, such as financial performance, reliability, safety, etc., and help in
assessing the performance. KPIs can be useful for a utility if these are properly chosen.
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Effective KPIs:
66
4.4 Audit
Periodic audits by independent (internal or external) auditors enable an organisation to review
the effectiveness of its asset management system. An audit should include evaluation of:
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4.6 Records
Well-maintained records of asset management activities itself is a valuable asset. Records
effectively provide a reliable source of information on variety of important asset management
elementsasset registers, condition of assets, preventive actions, etc. Records also demonstrate
smooth functioning of an asset management system and conformance with the requirements
of applicable specifications, standards and in-house procedures.
Records should be legible, readily identifiable, traceable, retrievableand always updated.
Some of the key records include:
5 Management review
Asset management programme may be implemented at the lower levels of management, but its
effectiveness depends on the active involvement of the top management. PAS 55-1:2008 recommends
that top management should periodically (say, annually) review the asset management programme
to ensure its effectiveness and continual improvement, and make top-level decisions required for
changes/improvements.
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Distribution transformers form the most critical asset in a power distribution network. These
equipment are spread over geographically vast areas and are usually in thousands (e.g., EDL: over
15,000 units, EVN HCMC: nearly22,000 units, PEA: over 254,000 units).
14
http://www.powerco.co.nz
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Raw
material
Cleanliness
Need more
analysis
Percentage
Remarks
occurrence
Winding termination
49%
Busbar assembly
Tap changer assembly
Insulation paper
34%
Poor copper wire insulated coating
Copper foils sharp edges
Fragments of copper wiring, busbars & coil welding
11%
Less space
6%
Fixing bolt: Too long
Poor wiring arrangement
Weak housing
Wrong handling
15
Source: Presentation titled, Aging Transformers, Increasing Load: A Regional Approach to Managing Transformer Assets in
LMS. Presented in June 2012 by Mr. Surapon Soponkanaporn.
70
Medium
Low
Consequences of failure
High
Likelihood of failure
Consequences of failure
Medium Criticality
High Criticality
High Criticality
Low Criticality
Medium Criticality
High Criticality
Low Criticality
Low Criticality
Medium Criticality
Low
Medium
High
Likelihood of failure
Fig. 5.6: Transformer Criticality Assessment
16
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Use factor: The relationship between the peak demand on a transformer and the
rating of that transformer.
Demand factor: The relative portion of load on a circuit compared to the load on a
particular transformer.
Coincidence factor: The relationship between the system peak and the individual
peaks of the transformers.
TLM RTU
(1) Wireless Communication
Router
Transformer
TLM Server at
on district
TLM RTU Transformer
TLM RTU Transformer
Historical Server
Fig. 5.7: Architecture of Transformer Load Management (TLM)
Remote terminal Units (RTU): RTU is an instrument installed near or at each transformer
to gather and deliver transformer data as well as alters in case of malfunctioning to the
Master Station through wireless communication or fibre optic network.
Master Station: The Master Station, located in utilitys office, receives transformer data
collected in the field by RTUs, and enables operators to view and evaluate it. This station
comprises of a database server (for collecting data from RTUs), an HMI (for displaying
data in user-friendly format, comparison and reporting) and a historical server (for storing
historic data). Operators can see in real time transformer loading, voltage, power factor,
72
Utility power cable fleets consist of many thousands of kilometres of overhead and underground
cables, some of which were installed decades back. On these aged cables, mostly installed in
difficult-to-access locations and subjected to mechanical, electrical and thermal stresses, depends
the reliability of the whole network. Life cycle management of these lifelines of a network is a crucial
component for any utility.
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Tests and inspections (type tests, routine tests, Factor Acceptance Tests, Site
Acceptance Tests)
Documentation requirements (drawings, technical data sheets, test procedures, reports, etc.)
Investment of man-hours in preparing thorough technical specifications is a prudent
investment in the asset management of cables.
Life cycle based cost analysis: Instead of focusing squarely on the first cost, utilities
should deliberately take the whole-life view of the proposed cable systems, which means
not only considering the first cost (material, installation, testing and commissioning),
but also the cost of operations and maintenance and disposal at the end of life.
7.1.4 Factory Acceptance Tests (FAT), Installation, Site Acceptable Tests (SAT)
After the procurement contract for underground cables is signed, the next goal should
be to ensure that cables are manufactured and installed as per the agreed specifications.
This is a critical step because unless there is a diligent oversight of the manufacturing
and installation processes by the utility personnel, the risk of non-compliance with
the specifications increases dramatically. Many times, cable contractors may agree to
the more stringent specifications to secure the contracts and revert to their own less
stringent specifications, which unless detected at the right time, can lead to project
delays and reliability problems in the long run.
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Electrical stress
Thermal stress
Mechanical stress
Radiation environmental stress
These stresses should be controlled within design limits, allowing cables to age (sometimes,
50 years) naturally. The life of a cable can be optimised by preventing or reducing the
abnormal ageing processes of cable insulation. This is possible with proper cable loading,
periodic health monitoring, and appropriate testing and maintenance methodologies.
Operations
The goal during operations should be to ensure reliability of network while keeping the
stresses on cables within acceptable limits. To achieve these objectives, the Network
Manager or Control Engineer should have valid data on the ampacity of cables in the
network.
The load capacity or ampacity of power cables is governed by the temperature rise within
the cable and its surroundings. Ambient temperature, cable design and construction,
conditions of installation (e.g., in-ducts, direct burial, overhead) and effect of surrounding
cables directly affect the ampacity of cables. IEC standards specify methods to calculate
the ampacity of cables.
Based on the ampacity rating, the Network Manager or Control Engineer is able to
monitor the maximum load current and ensure that it does not exceed the maximum
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ampacity rating of the cable. This action helps to improve the reliability and extend the
service life of the cables.
Maintenance
Preventive Maintenance (PM): PM is carried out at predetermined intervals
(6-monthly, 1 yearly to 5-yearly) and involves routine diagnostic tests, and repair or
part replacement of cables, terminations and splices when faults are detected. The
following tests form part of PM:
Corrective Maintenance (CM): This is done after a fault has occurred and involves
diagnostic tests to detect type of fault and its location, repairs to cables, terminations
and splices, and re-commissioning tests.
Besides transformers and cables, MV switchgear forms the third major area of focus of asset
management activities in a distribution network. MV switchgear:
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May remain idle in either open or closed positions for long periods of time.
Has direct impact on the safety and reliability of the overall network.
Involves high investment costs.
Potential downtime during replacement activities.
Conventionally, network operators tend to follow periodic Time Based Maintenance schedule and
replace these equipment at the end of their useful life, which can be 30 to 35 years. But with the
focus on deriving maximum value over an assets lifetime, the maintenance approach is shifting
toward Condition Based Maintenance (CBM).
This data on defects included observation during operation or maintenance as well as disruptive
failure of the switchgear. The data shows detection of mechanical problems and partial
discharge activity should be the two key target areas in the effective condition assessment of
this type of MV switchgear.
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Since the construction of SF6 switchgear is comparable with vacuum switchgear, the same fault
profile would be applicable for SF6 switchgear as well.
For oil-filled switchgear, however, the fault characteristics change. Research shows that the
condition of oil is the key indicator of the overall health of oil-filled switchgear.
In conclusion, to obtain sound condition assessment, the focus should be on mechanical
operation and partial discharge activity for vacuum and SF6 switchgears, and on the condition
of oil for the oil-filled switchgears. In addition, visual examination of the switchgear should also
factor into the overall condition assessment.
Overall, MV switchgear monitoring includes:
Mechanical monitoring
Partial Discharge (PD) testing
Transient Earth Voltage (TEV) measurement
Ultrasonic detection
Switchgear oil analysis
Thermal imaging
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There is now established circuit breaker monitoring equipment in the market for mechanical
assessment. In general, this equipment operates by temporarily (or sometimes permanently)
installing sensors on the control circuitry of the circuit breakers to be monitored. And
parameters that are monitored include the current profile in the DC trip coil, the current on the
secondary side of the ammeter to provide main contact opening time and the battery voltage.
The limitation of this technique is that the strength of the ultrasonic signal depends
heavily on the characteristics of the transducer and instrument, and also on the
discharge activity and the attenuation of the transmission path. Therefore, quantifying
and analysing the seriousness of detected ultrasonic signals can be difficult. Often
ultrasonic activity detection leads to further investigation irrespective of the signal level.
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80
In addition, however, by combining all the available information, such as diagnostic test results,
visual inspection data, maintenance experience, causes of previous failures etc., maintenance
teams can derive an overall health index for MV switchgear.
The health index is computed by numerically coding the available information and applying
weightings to the factors based on their effect on the probability of failure (POF) of the
equipment. The objective is to obtain a one overall value on a scale of 0-10 that indicates the
overall health of the asset in the context of POF.
The health index value represents the extent of degradation. For example, low values in the
range 0-3.5 represent some observable or detectable deterioration at an early stage, which
might be considered normal ageing. In such situations, POF remains low, and the condition and
POF would not be expected to change significantly for some time.
Medium values of health index, in the range 3.5 - 6.5, represent significant deterioration.
These values imply that degradation processes have moved beyond normal aging, potentially
threatening failure.
High values of health index, >6.5, represent serious deterioration with degradation processes
reaching the point of failure.
Creating numeric representation of condition in the form of Health Index (HI) and linking HI
to POF provides a powerful basis for modelling future performance, maintenance and renewal
requirements.
Do we have seamless management of assets over their life cycle? If not, why are different
phases disconnected?
What specific steps we can take to strengthen our processes in the four key phases of asset life
cycle: create, operate, maintain and dispose?
What specific KPIs (item 4.1.3) can we use to track the performance of asset management
programme?
Do we have a detailed age profile of all transformers?
Do we know the relative criticality of all our transformers?
What are the top three causes of transformer failures?
What is the cost of different types of maintenance: Corrective maintenance, preventive/time
based maintenance and condition based maintenance?
Do we have a detailed registry of cables (age, manufacturer, condition, rating, loading, etc.)?
What is our cable renewal strategy?
What new processes can we institute to ensure management review of asset management
programme?
What are the relative proportions of Time Based Maintenance and Condition Based Maintenance
of MV switchgear in our network?
What are the key causes of faults of MV switchgear in our network?
Are we using TEV and ultrasonic detectors to detect PD activity?
What kind of Health Index can be used to reflect the overall condition of critical MV
switchgear?
81|
How Hong Kong based CLP Power embarked upon a 10-year long journey of achieving excellence in
asset management?
How Japan based Chugoku Electric Power Company manages the maintenance of assets and reduces
its future investments?
How SP AusNet, an Australian power distribution company, puts together the key elements of its
asset management system: Vision, mission, objectives and key strategies?
How Eskom, a South African power distribution company, manages its transformers through
condition monitoring?
Hong Kong based CLP Power holds the distinction of being the first Asian electric utility company to
achieve PAS 55 certification.
More than a decade ago, CLPs Power Systems Business Group (PSBG) embarked upon the journey of
implementing a structured asset management programme. The impact of this programme has been
impressive. Over a period of 10 years, PSBG achieved more than 90% reduction in Customer Minutes
Lost (CMLs) while simultaneously responding to a 20% load growth. It also expanded the assets,
maintained tariff competitiveness and achieved high supply reliability.
Source: A Decade of Fruitful Network Asset Management in CLP Power by Chris Cheung & Chi-Pui, CLP Power Hong Hong
82
Clarity in roles: The roles of key stakeholders like Asset Owner, Asset Manager and
Service Managers were clearly defined. In addition, partnership agreements between
Asset and Service Managers were established to eliminate clash of priorities. These
agreements defined the responsibilities and expectations of all parties involved.
Centralised decision-making: A centralised investment planning function was
implemented, consolidating dispersed asset investment decision-making process.
Consolidation eliminated regional disparity of methods, priorities and duplication of
efforts.
Life cycle based planning: CLP established a full life cycle asset planning process,
avoiding the false economies of chasing short-term cost savings at the cost of longterm interests.
Risk management: A risk management framework was established to provide a
consistent basis for investments and resource prioritisation.
83|
These programmes were all implemented successfully, and in 2010 PSBG was again
assessed and accredited under the revised and extended PAS 55:2008 standard (see
Fig. 6.1).
2007 Assessment Results
Local
Demand
(MW)
6,500
Rising demand
6,000
5,500
5,000
90,000
Fixed
Asset
(HKSM)
80,000
70,000
60,000
50,000
40
Customer
Minutes
Lost
Improving supply
reliability
30
20
10
0
90
85
Avg Tariff
(HK Cents
per kWh)
Providing value
to customers
80
75
70
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
84
Preliminary plan: Used for consultation with Service Managers to collect their feedback
Draft plan: A refined plan for further discussion and consultation
Final plan: Communicated to the rank and file staff to solicit their support for
implementation
85|
The following case study on The Chugoku Electric Power Company of Japan is illustrative of how this
company, which was established in 1951, maintains its extensive assets, organises asset information
and manages to contain the demand for new investments against aging assets.
Established: 1951
Pain-in capital: JPY 186 billion
Service area: 32,278 sq. km
Number of employees: 9,830
Number of customers: 5,263,000
Electricity sales (2010): 60,070 million kWh
Maximum demand: 12,285 MW
2.2 Assets
Generation facilities
Thermal: 12 plants (7,801 MW)
Hydro: 97 plants (2,906 MW)
Nuclear: 1 (1,280 MW)
Total: 110 plants (11,987 MW)
Transmission facilities
2011 figures.
86
Chugokus overall maintenance cycle for existing assets comprises four steps:
Construction
Judgement of
Necessity and urgency
Design of
modification
Fig. 6.3: Chugokus Maintenance Cycle for Existing Assets
On-site inspections
Chugoku uses three types of on-site inspections:
Periodic inspections (checking surrounding environment, reviewing visual condition for
aging and damage, etc.);
Temporary patrols (needed in case of faults, disasters, information gathering);
Specific patrols (equipment requiring additional inspections).
Criteria for replacement
Chugoku follows the following criteria for making judgment on replacement of existing assets:
87|
Response
Installation year
Manufacturer
Lot No.
Model
Inspection
Modification
Installation
Retirement
Historic Information
Manufacturing year
Facility Information
Transformer
Switch
Voltage
regulator
Lightening
arrester
Pole
High, low
voltage
cable
88
To implement the above countermeasures, Chugoku have identified specific strategies, such
as:
SP AusNet is an Australian transmission and distribution company based in Melbourne, Victoria, that
is certified to ISO 55001. This case study sheds light on the key elements of its asset management
plan and offers insights into several strategies that could enable LMS utilities to advance their asset
management capabilities.
20
Source: 20-year Asset Management Strategy of SP AusNet Electricity Distribution Network issued in 2006.
89|
Aging assets
High plant utilisation levels
Zone substation Plant Utilisation Factor (PUF) is 72% (considered above industry
benchmark)
Technological changes
Application of digital technology devices, software platforms and in-built intelligence
in components
Requirement to improve network reliability
Need to maximise long-term return on investment
Enhancing network supply quality and safety
Resource shortage
3.3.1 Vision
To be a recognised leader and an innovator in the management of electricity distribution
assets.
3.3.2 Mission
SP AusNets mission includes:
regulators;
Ensuring customers expectations are met;
Ensuring long-term asset sustainability, reliability, quality and safety;
Developing and maintaining a skilled and motivated work force;
Complying with relevant distribution regulatory obligations.
3.3.3 Objectives
Manage network risks through adoption of common risk management processes
Increase network capacity to meet new and existing customer supply capacity
requirements
90
Enhance network supply reliability in accordance with the principles of the economic
incentive mechanisms.
Enhance network supply quality in accordance with regulatory incentive regime.
Enhance network safety to minimise risk to the public and employees.
Comply with industry Regulations, Codes and Guidelines.
Create shareholder value through growth and development of a sustainable and
profitable network business.
Financial
Regulatory
Safety
Environmental
Corporate Image
Standardisation: Maintain standardised asset design, installation, operation and
maintenance procedures.
Risk assessment: Capital Allocation Process (CAP) Model to assess project benefits
and risks
SP AusNet already has a range of processes and systems to monitor and analyse the
condition of its assets and accurately forecast the future replacement/relocation/
refurbishment requirements. For example, its Line Inspection Manual provides a
programme for the inspection and assessment of overhead network components
91|
(poles, cables, pole top assemblies). The other such systems include Thermal Imaging
Plan, Meter Asset Management Plan and Electrical Network Development Procedure.
In addition, the Asset Management Plan includes the following strategies:
Condition-based maintenance
Continually monitor and adjust inspection and maintenance cycles to suit the
performance and condition of network assets.
Live maintenance: Progressively increase the safe use of live maintenance work
92
93|
This case study shows how Eskom Distribution of South Africa used condition monitoring as one of
its core strategies to manage the life of its transformersand reduce the risks of expected failures.
Paper titled, Power Transformer Life Management by L.M. Geldenhuis (18th International Conference on Electricity Distribution)
Eskon Web site: www.eskon.co.za
23
All figures as at 30 September 2013
21
22
94
Considering the large proportion of aged transformers, asset management is crucial for
Eskom Distribution.
Eskom Distribution Western Regions transformer life management process comprises the
following steps:
General assessment: All transformers are first evaluated using a general assessment.
Focused assessment: Based on the results of general assessment, a more focused
assessment is carried out of the select transformers
Risk identification: Based on the results of both general and focused assessments,
condition monitoring data is interpreted and diagnosed to define the probability of
failure or network risks.
Suitable maintenance strategies: Identified risks lead to adaption of suitable
maintenance strategies.
Capital allocation: Depending on the overall assessment of the condition of
transformers, inputs are given to the capital investments committee.
95|
In addition to the initial condition assessment, the transformers are ranked according
to a set criterion (e.g., network criticality, customer profiles, equipment failure history
and network redundancy).
Depending on the margin of deviation from the benchmark and other factors like
prevailing operating conditions and network criticality, the status of each transformer
is escalated to certain risk level. For example, Fig. 6.5 shows the escalation process
for excessive moisture content. Similar processes are used for other assessment
parameters.
Moisture =
2.0%
Rating = 5MVA
5MVA<Rating =
20MVA
Rating>20MVA
Sampling
temp. > 40C
Sampling
temp. < 40C
Sampling
temp. > 50C
Sampling
temp. < 50C
Consider online
moisture
assessment
if below 2.2%,
do nothing else
dry out
Dry out or
online moisture
assessment
if below 2.2%, do
nothing else dry
out or assessment
Action depending
on confidence
level
96
4.3.3 Conclusion
Condition monitoring activities do not re-instate the lost life of equipment. These
activities assist network operators to understand the aging process and detect
possible failures in advance. Condition monitoring is the pillar of power transformer
life management, which is an ongoing process. By understanding the individual aging
profiles and dominant failure modes, the life of transformers can be extend.
CLP Power case study shows that asset management is a long-term initiative. Whats our own
time horizon for adopting a full-fledged asset management programme?
CLP Power started by reorganising its organisational structure. What kind of organisation
structure will suit our asset management priorities?
Can we adapt some of the countermeasures used by Chugoku to suppress future CAPEX
expenditures against for aging assets?
97|
Results of an assessment carried out in 2012 among LMS utilities to assess their asset management
maturity.
Individual profiles of each of the LMS utilities. These profiles include information on four key aspects:
power supply, assets, performance and asset management activities.
In 2012 an Assessment of Asset Management Activities was undertaken among the following nine
LMS utilities: EDC, EDL, EVN Hanoi, EVN HCMC, EVC NPC, EVN CPC, EVN SPC, PEA and MEA. The
objective of the assessment was to establish the LMS utilities maturity level in asset management
against the following scale.
Innocent
Aware
Developing
Competent
Effective
The organisations Asset Management Activities are fully effective and are
being integrated throughout the business
Excellent
The organisations Asset Management Activities are fully integrated and are
being continuously improved to deliver optimal whole life value
Fig. 7.1: Asset Management Maturity Scale24
24
Source: AMCL
98
MV Distribution Transformers
Primary (e.g. 33/11kV)
Secondary (e.g. 11/0.4kV)
MV Underground Cable
MV Switchgear (indoor type)
The complete questionnaire along with responses is covered under item 1.4.
99|
100
Question
Has the
organisation
establish a
framework or
system for asset
management?
No action taken
to develop a
framework or
system for asset
management.
Some
components are
in place but no
framework pr
structure linking
them.
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
Has an Asset
Management
Policy been
documented,
authorised and
communicated?
EDC
Remarks
EDC
MEA
Response 2#
Response 1#
Do not have a
documented
Asset
Management
Policy
*Discussion
the meaning
of Framework
whether we
have the same
understand.
As Asset
Management
Policy exists but
not authorised by
top management.
EDL
EVN Hanoi
EVN HCMC
EVN NPC
ECN CPC
ENV SPC
PEA
MEA
X
Ask EVN to give
more information
on the AM Policy
101 |
Is the Asset
Management
Policy aligned
with strategic
business plan?
No
EDC
Started process
to align Asset
Management
Policy to strategic
business plan.
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
Does your
organisation
have Asset
Management
Strategy
No
Some
components are
in place but no
framework or
structure linking
them.
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
Is your Asset
Management
Strategy
consistent
with the Asset
Management
Policy and
Strategic Business
Plan?
Do not have
an Asset
Management
Strategy
EDC
EDL
EVN Hanoi
EVN HCMC
102
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
Does your
organisation
practises
Life Cycle
Management of
its key or critical
assets?
No
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
Does your
organisation have
risk management
policy or
procudures
to deal with
asset-related
risks or network
criticalities?
No
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
103 |
X
X
Does your
organisation
practice
Maintenance
Planning for its
network assets?
No
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
What is
your current
maintenance
practice of your
network assets:
(a) Run to failure
No
Yes
(b) Time-based?
No
Yes
(c) Preventive?
No
Yes
(d) Conditionbased?
No
Yes
(e) A mix of
time-based and
condition-based?
No
Yes
No
Yes
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
104
(b) Time-based?
Yes
9
X
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
No
EDC
EDL
Yes
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
No
Yes
Ask EVN to
clarify what
time-based
means to them
EVN Hanoi
(d) Conditionbased?
105 |
EDC
(c) Preventive?
No
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
(e) A mix of
time-based &
condition-based
No
Yes
EDC
EDL
10
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
If your
organisation
practices
Condition-based
Maintenance, is
it applied to the
following selected
assets:
(a) MV
transformers?
No
Yes
(b) MV UG cables?
No
Yes
(c) MV
switchgears?
No
Yes
(a) MV
transformers
No
Yes
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
(b) MV UG cables
X
No
EDC
EDL
Yes
EVN Hanoi
EVN HCMC
106
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
(c) MV
switchgears
11
107 |
No
Yes
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
Do you measure
the performance
of your network
assets?
No
Yes
Are Key
Performance
Indicators (KPI)
used to measure
the performance
of network
assets?
No
Yes
Do you measure
the performance
of your network
assets?
No
EDC
EDL
Yes
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
Are Key
Performance
Indicators (KPI)
used to measure
the performance
of network
assets?
No
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
12
Do you have a
review process
for your Asset
Management
activities?
EDC
Yes
Yes
X
No
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
108
13
Is your
Maintenance
Department
organised and
structured to
ensure that
network assets
deliver the desired
reliability and
performance?
Top Management
has not
considered
the need to
re-organise and
re-structure the
Maintenance
Department to
ensure network
assets deliver the
desired reliability
and performance.
Top Management
understands
the need to
re-organise and
re-structure the
Maintenance
Department to
ensure network
assets deliver the
desired reliability
and performance
but has taken no
action.
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
14
Where
construction and
maintenance
activities are
outsourced to
contractors,
do you have
appropriate
monitoring
and controls in
place to ensure
compliance
to your work
standards?
X
The organisation
has not
considered the
need to put
monitoring and
controls in place
for outsourced
activities.
EDC
EDL
109 |
The organisation
monitors and
controls its
outsourced
activities on an
ad-hoc basis. Not
all outsourced
activities are
monitoring and
documented.
X
X
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
15
16
The organisation
does not have
any means in
place to identify
competency
requirements.
The organisation
understands the
need to identify
training and
competency
requirements
and has plans
to provide
the necessary
training to
achieve these
competencies.
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
Does the
organisation have
a computerised
asset data and
maintenance
management
system>
No
Asset data id
kept as manual
records.
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
The oganisation is
aware of the need
for computerised
asset data and
maintenance
management
system, and is in
the process of
deciding how to
do this.
ENV SPC
PEA
MEA
110
17
The organisation
has not
considered this
need an asset
data is updated
on an ad-hoc
basis.
The organisation
understands the
need to update
asset data and
has initiated
steps to ensure
this is done.
EDC
EDL
18
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
Does the
organisation
carry out failure
investigation
into equipment
failures and nonconformance to
specifications?
The organisation
has not
considered the
need to carry
out investigation
into equipment
failures and noncompliance
EDC
EDL
111 |
Procedures are
available but used
in an inconsistent
manner or on an
ad-hoc basis.
X
X
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
19
Are Capital
Expenditure
(CAPEX) and
Operational
Expenditure
(OPEX)
optimised where
expenditure is
prioritised to
ensure targeted
service levels
and reliability is
achieved?
The organisation
has not
considered this
need. CAPEX and
OPEX spend is not
prioritised and
linked to network
performance
The organisation
is aware of the
need to prioritise
CAPEX and OPEX
spend and to link
it to network
performance, and
is in the process
of deciding how
to do this.
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
20
Doesthe
organisation
have procedures
in place to
review and
ensure continual
improvement in
the performance
and reliability of
its assets?
X
No
The organisation
reviews the
performance and
reliability of its
assets on and
ad-hoc basis.
EDC
EDL
EVN Hanoi
EVN HCMC
EVN NPC
EVN CPC
ENV SPC
PEA
MEA
112
Performance
Total System Loss
Year
Loss (%)
2006
10.69
2007
10.37
2008
10.03
2009
9.76
2010
9.51
2011
7.16
25
Source: Presentation titled, Asset Management in EDC Cambodia. Presented by EDC in June 2012 at Thailand.
113 |
Loss (%)
2005
19.32
2006
17.86
2007
15.30
2008
13.70
2009
11.98
2010
10.78
2011
10.14
Source: Presentation titled, Asset Management in EDL Lao PDR. Presented by EDL in June 2012 at Thailand.
114
Maintenance
Guidance from Transformer Handbook (2009)
Scheduled maintenance on daily/monthly/yearly basis
Condition monitoring by checking oil and winding temperatures, colour of silica gel, oil
level, main tank, Overload Tap Changer (OLTC), protection relay, bushing, etc.
Assets
Cables (110 kV line)
Overhead: 622 km
Underground: 17.42 km
Cables (MV line)
Overhead: 5,052 km
Underground: 2,002 km
Cables (LV line): 23,244 km
Substations
110 kV substations: 30 nos.
Distribution substations: 12,685 nos.
Performance
Acceptable Fault Ratio
Assets
Ratio
Inner City
Suburbs
110 kV line
Case/100km, year
0.84
0.84
MV line
Case/100km, year
12
15
110 kV substation
0.05
0.05
Distribution substation
2.25
27
Source: Presentation titled, Process to operate and manage Hanoi power network. Presented by EDL in June 2012 at Thailand.
115 |
Assets
Cables (110 kV line)
Overhead: 517 km
Underground: 18.07 km
Cables (MV line): 5,107 km [underground: 1,301 km]
Cables (LV line): 9,895 km
Substations
110 kV substations: 42 [3,496 MVA]
Distribution substations: 21,946 [8,178 MVA]
Turnover: USD 932 million
Performance
NA (information not available)
Key asset management activities
Risk management identification of key risks
Unfavourable natural environment
Physical failure of assets
Inappropriate design, specifications, procurement, construction, operations and
maintenance
Ownership/control of assets not properly defined and implemented
Malicious activities
Risk mitigation
New transformer considered if remedial actions are not applicable
Procurement: Implemented a step-by-step bidding procedure according to laws of
procurement of Vietnam
Inventory management: Reduced inventory by using material and equipment effectively
28
Source: Presentation titled, 6th Lower Mekong Sub Region Harmonisation Forum. Presented by EVNHCMC in June 2012
at Thailand.
116
29
117 |
Loss (%)
2007
7.76
2008
7.26
2009
7.82
2010
7.38
2011
7.30
Typical checks: Noise, insulator, tank, oil level in oil supplement tank, heating on
connections, earth systems, colour of moisture absorbent
29
Source: Presentation titled, Viet Nam Electricity-Central Power Corporation. Presented by EVNCPC in June 2012 at Thailand.
118
31
119 |
Assets
110 kV line: 4,000 km
110 kV Substations: 145 nos. (7,600 MVA)
22/12.7 kV line: 54,000 km
220/380 V line: 69,500 km
Substations: 110,000 nos. (17,000 MVA)
22 kV underground cable: 650 km
Performance
Power loss: 5.75%
Asset management activities
NA (Information not available)
Source: Presentation titled, Asset Management in Metropolitan Electricity Authority, Thailand. Presented in June 2012 at Thailand.
120
Design
Double bus for 69 kV and 115 kV Gas Insulated Switchgear (GIS), and single bus tie
for 12 kV and 24 kV GIS
Design
Multi-dividing, multi-connecting configuration
Reduce length of lines
Replace pin type insulator with pin-post type
Maintenance
Tree pruning
Line patrolling with thermal scanner and binoculars
Partial Discharge (PD) detection using ultrasonic tester or corona camera
Online monitoring of transformer load current
Prevent interruptions to live parts by animals
Availability of outage restoration crew
Transformer management
Inspection and testing at manufacturers works
Thorough checking of installation
Compliance with recommended commissioning procedures and tests
Dissolved Gas Analysis (DGA)
Vacuum drying
Cleaning of fins
Periodic testing of oil
Test and calibrate relays
Install surge arresters
Checking harmonics and install harmonic filters
121 |
Assets
115 transmission line: 10,228 cct-km
33 kV distribution line: 35,351 cct-km
22 kV distribution line: 232,613 cct-km
Distribution transformers: 254,466 units
MV load break switch: 33,772 units
Pole-mounted CB (ACR): 2,679 units
Net assets: USD 8,874 million
Performance
Energy losses: 4.91%
SAIFI (times/customer/year): 8.85
SAIDI (minutes/customer/year): 350.06 minutes
Income: USD 9,801 million
CAPEX: USD 520.49 million
OPEX: USD 1,249.25 million
Key asset management activities
Asset life cycle activities
Planning, engineering, procurement, erection, operation, maintenance, analysis
Maintenance
Corrective (planned and unplanned)
Preventive (time-based and condition based)
Cables: Off-line partial discharge mapping, Tan Delta measurement
Distribution transformers: Insulation resistance/PI measurement, oil dielectric test, Tan
Delta measurement
Tests/test equipment for condition monitoring activities
Infrared camera (losses of connection, overload)
Ultrasound (partial discharge, arching, tracking)
Corona viewer (corona discharge, partial discharge)
33
34
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Other activities
Tacking of equipment age
Replacement plans for Automatic Circuit Recloser, MV Load Break Switches
Areas for improvement/challenges/potential risks
Equipment replacement / rotation plan
Performance-based procurement
Greater focus on condition- and reliability-based maintenance
Based on the 2012 assessment and understanding of asset management derived from this
guidebook, what are our key gaps?
What three specific actions we can take over short-term to plug, even partially, the identified
gaps?
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Challenges faced by utilities on their way to higher levels of maturity in asset management
Three-phase roadmap for asset management journey
Several tactical and strategic steps that can be implemented in the short and medium term
Key characteristics of an asset management programme
Power distribution utilities aspiring to achieve higher levels of maturity in asset management usually
face the following challenges on the way:
Strategic misalignment: Their business strategy and KPIs may not be aligned with the current
asset management practices.
Knowledge and competencies: Asset management is still a new field of knowledge for many
employees and managers, and required knowledge about the key asset management principles,
processes, tools, risk management practices needs to be imparted throughout the organisation.
Culture, change, mindset: Typically, utilities adopt a culture of stable operations where the
focus is more on somehow keeping the costs below the revenues and avoiding risks at all costs.
Normally, customer focus is not a priority. Executing change of this kind of culture is a major
a challenge.
Processes and methodologies: Asset management requires strong risk and life cycle based
processes, which is not the case for many utilities.
Data management and IT: Owing to lack of investment in IT infrastructure, utilities often
operate with non-integrated systems, insufficient data gathering and analysis, and inadequate
reporting systems.
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2 Four-phase roadmap
Recognising that adopting asset management on a bigger scale would involve a number of changes
all across the organisation, which can be unmanageable and disruptive, LMS utilities can adopt a
four-phase roadmap as described below:
Phase 1
The focus of the first phase is to make a strategic alignment with the asset management framework
and principles by adopting the following changes:
Grow competencies: Promote awareness of asset management through structured learning and
training on asset management all across the organisation.
Change: Top management should make a case for change towards new asset management
practices.
Modify organisational structure: Review the existing organisation structure and modify to
align with the three-part structure comprising Asset Owner, Asset Manager and Asset Service
Provider (as described in Chapter 4).
Realign KPIs: Move away from over emphasis on one particular parameter (say, reliability or
cost) and adjust KPIs to balance the focus on all three key parameters: Cost, performance and
risks.
Phase 2
Create asset registry: Availability of accurate asset informationage, performance, condition,
etc.is the key to effective asset management.
Develop risk management processes: Develop tools, processes and systems for risk management
across the complete life cycle of assets.
Develop life cycle management practices: Develop and adopt tools and processes for life cycle
management of all assets.
Performance management: Develop performance management processes to measure outcomes
(e.g., safety performance, reliability, return on assets, etc.)
Phase 3
In phase 3, the utility should be ready for a complete gap assessment.
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Making this guidebook widely available within the organisation (and if required,
translating it in the local language)
Sending employees to seminars and conferences on asset management
Holding internal presentations and discussions on asset management
Translating PAS 55 and ISO 55000 into familiar languages and making it easily accessible
Encouraging employees to get certified by the Institute of Asset Management (IAM)
Creating an asset management knowledge centre to store all the related articles, case
studies, specifications, etc. at one place
Inviting professionals from other utilities where an asset management programme is
already functioning successfully to share their experiences
Inviting consultants who advise on asset management to share their expertise
What do we own?
Where are our assets?
What are their key details?
Whats the condition of assets?
Whats the remaining life of assets?
Whats the value of assets?
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Considering above challenges it may not be possible to build the most complete,
accurate and updated inventory of assets in the first attempt, but it is important to
start this process and follow up with improvements over time.
Manufacturer
Lot number
Year of installation and commissioning
Rating
Type
The tools available for creating an asset registry vary from handwritten records to
standard spread sheet software to commercially available asset management software.
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An online asset registry that is accessible to all concerned personnel is a huge step
forward in the journey of asset management.
Design risk
management
framework
Continual
Improvement
Implement
Monitor
Fig. 8.1: Process for Establishing Risk Management Framework
Mandate and commitment: The very first step is to secure mandate from the top
management. To be sustainable, it should be mandated from the Board (or equivalent),
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implemented by senior management and supported by all levels of management and risk
owners.
Design of framework for managing risk: Risk management processes must be well
designed to support effective implementation.
Implementing risk management: Implementation is about following the agreed
processes in daily operations. Necessary training should be given to all staff before
implementation.
Monitoring and review: An important step, risk management practices should be
subjected to periodic monitoring and review to confirm compliance with agreed
framework.
Continual improvement: Continuing to tweak and enhance key elements of the
risk management framework to progress towards a more mature risk management
framework.
129 |
130
Osman Bulent Tor and Mohammad Shahidehpour in their paper35 propose three distinct time frames of
asset management activities for power distribution utilities: Short-term, medium-term and long-term.
35
Paper titled Electric Power Distribution Asset Management by Osman Bulent Tor and Mohammad Shahidehpour
131 |
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References
Presentations [Title, presented by, date, location]
Process to Operate and Manage Hanoi Power Network, Ho Viet Thong, 27-28 June 2012, Thailand
Guidelines on Implementing Asset Management in Power Distribution Systems in ASEAN, Dr. Abu
Hanifah, 27-28 June 2012, Thailand
Hochiminh City Power Corporation, EVNHCMC, 27-28 June 2012, Thailand
Northern Power Corporation 6th LMS Harmonisation Forum, EVNNPC, 27-28 June 2012, Thailand
Managing T&D Assets to Enhance Business Performance 6th LMS Harmonisation Forum, EVNCPC,
27-28 June 2012, Thailand
Aging Transformers, Increasing Load: A Regional Approach to Managing Transformer Assets in LMS,
Mr. Surapon Soponkanaporn, 27 June 2012, Thailand
Policies and Best Practices for Utility on Distribution Asset Management in Japan, Kazuhiko Koeda,
27 June 2012, Thailand
Managing the Assets of Metropolitan Electricity Authority, Thailand, Dr. Asawin Rajakrom, 28 June
2012, Thailand
PEAs Asset Management, Mr. Somachai Songsiri, 27-28 June 2012, Thailand
Asset and Transmission System Operation and Maintenance Asset Management in EDC Cambodia,
Mr. Mak Thorn, 27-28 June 2012, Thailand
Asset Management in EDL Lao PDR, Mr. Vilakone Sengdara, 27-28 June 2012, Thailand
Implementing Risk-based Asset Strategy for Critical Network Assets, Hardanjit Singh Gosal,
September 2012, HCMC
Asset Management Transformation for ASEAN Utilities A Pragmatic Approach, Halim Osman,
September 2012, Ho Chi Minh City
Introducing Asset Management Best Practices to Power Distribution Utilities in Lower Mekong Subregion: A Case Study, Hardanjit Singh Gosal, 2013, Bali
PEA Asset Management, Kitti Leangkrua, Dec 2012, Thailand
Causes and Failure Rate of MEAs Distribution Transformer, Sompong Sitthichaiyanan, NA, Thailand
Asset Management Best Practices for LMS Utilities (EVN SPC), Tran Cong Dien, Dec 2012, Bangkok
LMS Harmonisation Phase 2 Study, MEA, Sept. 2013, Hanoi
MV Switchgear Maintenance, Hardanjit S. Gosal, ARSEPE 2008 Malaysia
Successful implementation of PAS 55 in SP AusNet, Richard Edwards (AMCL) and John Allen (SP
AusNet)
Case studies, papers, thesis, guides, books [Title, author, publication/publisher]
Electric Power Distribution Asset Management, Osman Bulent Tor & Mohammad Shahidehpour, NA
A Decade of Fruitful Network Asset Management in CLP Power, Chris Cheung & Chi-Pui Ng, The
Woodhouse Partnership
Experiences Using Quantitative Risk Assessment in Distribution System Asset Management, Dag
Eirik Nordgard & Geir Solum, CIRED
Power Transformer Life Management, L.M.Geldenhuis, CIRED
Asset Management Techniques; Joachim Schneider & et al., 15th PSCC
Asset Management Techniques for Transformers, Ahmed E.B. Abu-Elanien & M.M.A. Salama,
Electric Power Systems Research
Maintenance Optimisation for Power Distribution Systems, Patrick Hilber, Royal Institute of
Technology
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Asset Management for Transmission and Distribution, Richard E. Brown & Bruce G. Humphrey, IEEE
Power & Energy Magazine
Asset Management: A Guide for Water and Wastewater Systems, New Mexico Environmental
Finance Centre
Asset Management: A Best Practices Guide, Environmental Protection Agency (EPA)
Leveraging Network Utility Asset Management Practices for Regulatory Purposes, KEMA
Assessment of Asset Management Activities, LMS TWG # 4
Business Essentials for Utility Engineers, Richard E. Brown, CRC Press
Note on ISO 55000, John Woodhouse, The Woodhouse Partnership, 2013
Guidelines for Power Delivery Asset Management, EPRI, 2005
Notes from Underground Cable Fleet Management, Matthew Olearczyk et al., IEEE Power &
Energy Magazine, 2010
Asset Management Medium Voltage Switchgear, Amol S. Patharkar, CEEAMA publication
Effective Condition Assessment of Medium Voltage Switchgear, Maintenance and Asset
Management, Vol 27, no. 4
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