What is a model and why have one? Models are graphical depictions that illustrate and describe concepts and ideas, and can be very useful to explain those ideas simply.
Asset Management Concept Model
The Asset Management Concept Model requires the implementation of the Principles (and Fundamentals) of asset management within a “Plan Do Check Act” continual improvement process.
The Asset Management Concept Model that described the underpinning Four Principles of Asset Management – being Output Focus, Capabilities, Level of Assurance and Learning Organisation – see the figure above.
Asset Management System Model
Our previous post introduced the Asset Management Systems Model – see the figure above for all three asset management models. All these three models were developed by the Asset Management Council (Australia).
In particular, the three models that make up the suite, describe:
- The “Why of asset management” – the Asset Management Concept Model;
- The “What of asset management” – the Asset Management Systems Model; and
- The “How of asset management” – the Capability Delivery Model (or sometimes called – Asset Management Process Model)
What is the purpose of an Asset Management Systems Model?
What is a management system? A management system is defined as a set of interrelated or interacting elements of an organization to establish policies and objectives, and processes to achieve those objectives.
In a small organization there may not be an official system, just ‘our way of doing things’. Often ‘our way of doing things’ is not written down, instead it is in the head of the staff. However, the larger the organization the more likely it is that there are written instructions about how things are done. This makes sure that nothing is left out and that everyone is clear about who needs to do what, when and how. When an organization systemizes how it does things, this is known as a management system.
The purpose of the Asset Management Systems Model is therefore to:
- Describe the key elements and components of an Asset Management System: and
- Describe how all those elements relate.
The Capability Delivery Model
The purpose of the Capability Delivery Model (or Asset Management Process Model) is to:
- Implement the asset management Principles, identified in the Asset Management Concept Model, while also implementing the continuous improvement approach contained within that model
- Identify and implement data driven risk based analytical processes that:
- Identify the Asset Management Objectives, needed to achieve the Organisational Objectives;
- Identify the analytical processes that develop the plans and activities (Asset Management Plans etc and the associated need for resources to support those plans) that, when implemented, will collectively achieve the Asset Management Objectives.
- Identify and document the various engineering and financial disciplines involved in those processes;
- Identify and document the enabling technical and financial competencies for the asset management processes
- Identify and document relevant ISO and international technical management standards relevant to the processes, such as:
- ISO 31000 Risk Management – see the figure below.
- ISO 10007:2003 Quality management systems — Guidelines for configuration management
- ISO 10014:2006 Quality management — Guidelines for realizing financial and economic benefits
- ISO 9004:2009 Managing for the sustained success of an organization — A quality management approach
- ISO/IEC 15288:2008 Systems and software engineering — System life cycle processes
- EIA 632 Systems engineering — Life cycle processes — Requirements engineering
- US Military Standard 390D Level Of Repair Analysis (LORA)
- IEC 60300–3–10 Dependability Management – Part 3-10: Application guide – Maintainability
- IEC 60300-3-14 Dependability Management – Part 3-1: Application guide – Supportability.
- IEC 61078 Analysis techniques for dependability – Reliability block diagram
- IEC 60812 Analysis techniques for system reliability – Procedure for failure mode and effects analysis (FMEA)
- IEC 60300-3-11 Dependability management – Part 3-11: Application guide – Reliability centred maintenance
- IEC 60300-3-12 Dependability management – Part 3-12: Application guide – Integrated logistic support
- ISO 17021 – Competence requirements for auditing/certification of asset management systems
- IEC 62775 Dependability Management: Application guidelines – Technical and Financial processes for implementing asset management systems.
- IEC 60300-3-15:2009 Dependability Management – Part 3-15: Application guide – Engineering of system dependability.
- IEC 60300-3-4 Dependability Management Part 3-4; Application guide – Specification of dependability
- IEC 60300-3-1 Dependability Management – Part 3-1: Application guide – Reliability
- Naval Aviation (Navair) 00 25 403 Reliability Centred Maintenance
- Identify and document relevant ISO and international financial management standards (International Financial Reporting Standards (IFRS) and relevant International Accounting Standards (IAS)) relevant to the processes, such as:
- IFRS 3 Business Combinations
- IFRS 7 Financial Instruments: Disclosures
- IFRS 8 Operating Segments
- IFRS 9 Financial Instruments
- IFRS 13 Fair Value Measurement
- IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
- IAS 16 Property, Plant and Equipment
- IAS 17 Leases
- IAS 21 The Effects of Changes in Foreign Exchange Rates
- IAS 36 Impairment of Assets
- IAS 37 Provisions, Contingent Liabilities and Contingent Assets
The Capability Delivery Model represents the organisational capability and associated processes (as implemented by the Asset Management System) to achieve the Asset Management Objectives as documented by the Strategic Asset Management Plan.
The Capability Delivery Model (as a part of the Asset Management System) documents six related and integrated disciplines, namely:
- Demand Management (noting that Needs Analysis is part of Stakeholder Management and that Demand Analysis is part of Business Management);
- Systems Engineering;
- Configuration Management;
- Acquisition, (being Capability Acquisition);
- Operations and Maintenance; and
- Continual Improvement.
These disciplines are associated with a number of national and international Standards – see above.
Disciplines
Demand Management
The discipline of Demand Management establishes sound relationships with internal and external stakeholders – see the figure below. Demand management takes a proactive stance in identifying future changes in business need.
Systems Engineering
The discipline of Systems Engineering seeks to develop an engineering management process that can evolve and verify an integrated, life cycle balanced set of system solutions that satisfy stakeholder needs. The Systems Engineering process appears in the figure below.
This solution achieves balance by using the lowest life cycle cost as a balance between what is paid today (Acquisition) against what is paid tomorrow (Operations and Maintenance etc), otherwise known as CAPEX and OPEX respectively.
Configuration Management
The discipline of Configuration Management (refer to ISO 10007) involves the management of the functional and physical attributes (data) of an asset system and the associated assets – see the figure below.
The aim of Configuration Management is to assure the business that the data view of assets (functional data, physical data and the Derived data) are and remain consistent with reality – that is, what is fitted.
Capability Acquisition
The discipline of Capability Acquisition seeks to identify how best to acquire the needed business capability, for the period that capability is required. In this way, the discipline of Capability Acquisition seeks to take a long-term perspective, focusing on reducing the Whole of Life Costs associated with the acquisition of physical assets, while noting the need to deliver the required services/output’s and at the same time deliver the financial returns (if relevant).
Operations and Maintenance
The discipline of Operations and Maintenance involves the undertaking of those related activities, consistent with business needs. The two are intertwined – see the two figures below.
Operations
Operations requires the development and execution of approved operations tasks.
Maintenance
Preventative and corrective maintenance addresses such activities as condition monitoring, hard time activity and functional testing.
Continuous Improvement
Is the process perfect? Probably not.
Continuous and improvement is a feedback loop that measures and assess what is occurring in the delivery of operations and maintenance arrangement, feeds it back through a series of loops that redefines and improves along the way.
It starts with process monitoring, process audit checks, gaining support change and requirement change – see the figure below.
Artefacts
These artefacts are documents that describe process, activities, roles, responsibilities and plans in the design of the Capability Delivery Model:
- Systems Engineering Management Plan – management of an integrated engineering program that meets needs.
- Configuration Management Plan – how management of business capability will be conducted.
- Operations Management Plan – management and delivery of asset or asset system functions in support of needs.
- Integrated Logistics Support Plan – necessary logistic support activities.
- Capital Expenditure – expenditure of capital to acquire or upgrade capabilities.
- Operating Expenditure – annual recurring funds to keep the operation moving.
- Safety Management Plan – activities carried out achieve approved and governed safety objectives.
- Environmental Management Plan – activities carried out achieve approved and governed environmental objectives.
- Heritage Management Plan – activities carried out achieve approved and governed heritage objectives.
Summary
A much more detailed model than the previous two, the Capability Delivery Model’s provides the engine room of “how” asset management can both identify and achieve that desired balance of Cost, Risk and Performance.