Developing and facilitating the implementation of a value-prioritised Asset Management Roadmap

A customized project based on PAS 55 / ISO 55001 standards to align priorities, raise competitive advantage and confidently deliver the strategic objectives as part of the ISA Group.
Delivered multi-million $$’s of verified benefits while achieving a radical change in atmosphere, behaviours and corporate culture, all in just 24 months.
Local pride and ownership of the technical solutions is widely recognised and there is strong support from the senior leaders.
On track to becoming the first power transmission company in Brazil to be certified to the ISO 55001 standard for asset management.
Contract Objectives

ISA CTEEP is a regulated electricity transmission company created in 1999-2001 with a 30-year concession to deliver power to more than 50 million people in the South East region of Brazil. It has over 25,000 km of transmission lines, 2,300 km of optic fibre cables and 126 substations with c.66,000 MVA of transformation capacity. Since 2007 they’ve invested US$ 3.7 billion and currently have 1,300 km of network under construction. There are 1600 members of staff.

As part of the international ISA Group, CTEEP was encouraged to develop its asset management capabilities. The organisation contracted subject matter experts, The Woodhouse Partnership to review existing maturity, and to develop and facilitate implementation of a value-prioritised Asset Management roadmap. As the work started, the company quickly recognised that developing and embedding an ‘asset management system’ based on PAS 55 / ISO 55001 standards, would help the company to align priorities better, raise competitive advantage and more confidently deliver its strategic objectives.

Activity Description

Aligned with ISA CTEEP’s strategic priorities, the Asset Management (AM) project has therefore been built upon 3 main pillars:

  1. Strategic alignment and communication in the development and delivery of AM strategy and priorities, with a clear understanding of roles and responsibilities.
  2. Improvement of decision-making processes, practices, and tools
  3. Developing human talent, with an extensive program to enhance workforce understanding of fundamental concepts such as asset life cycles, risk, and value-for-money

 

The specific deliverables established for the project were to:

  1. Roll out an asset management education and training program
  2. Introduce a robust decision-making framework, justifying interventions on optimal life cycle value and Cost/Risk/Performance impact (TOTEX).
  3. Establish systematic asset renewal and substation modernization plans
  4. Establish an integrated asset ‘creation’ strategy (linking requirements analysis, design, procurement, construction, and life cycle planning)
  5. Revise and optimize maintenance strategies
  6. Optimize supply chain processes (inc. logistics, warehousing, inventory optimization)
Contract Project Outcomes

ISA CTEEP has demonstrated that building and embedding an asset management system can deliver outstanding business benefits. The customized mix of targeted training in underlying concepts, with personalized focus and prioritized opportunities, has worked extremely well. This has delivered multi-million $$’s of verified benefits while achieving a radical change in atmosphere, behaviors, and corporate culture, all in just 24 months.

Key success factors have been the combining of human factors with the introduction of new processes, tools, and performance criteria. The breaking down of inter-departmental barriers has come from investments in education and recognizing the benefits of collaboration, following structured approaches such as the SALVO process. Local pride and ownership of the technical solutions are widely recognized and there is strong support from the senior leaders. The organization has been well supported by ISA Group and the flexible and adaptive ‘knowledge transfer’ style of TWPL subject experts in adapting core asset management principles to the local environment and value priorities.

The project is already delivering ahead of plan, both in the maturity assessments and in economic return on investment. ISA CTEEP is consolidating the new practices and setting its sights on becoming the first power transmission company in Brazil to be certified to the ISO 55001 standard for asset management.

Case; Strategy/Decision

Benefits

Acquisition of spare parts; analyze the optimal inventory of spares for current assets US$ 1,700k
Alternative equipment in stock: evaluate alternative uses of existing over-stocked equipment US$ 300k
Asset Renewal: define the best strategy and timing for renewing substation assets US$ 900k
Inventory optimization; dimensioning of inventory and distribution center US$ 1,100k
Maintenance evaluation; evaluate the business case for maintenance and optimum periodicity US$ 750k
TOTAL US$ 4,8M

 

“The integrated Woodhouse approach to people, processes and tools is really building a robust asset management environment in ISA CTEEP and helping us to act as a team instead of “silos”. And, just 12 months into the 3-year roadmap, this is already yielding evident culture change as well as multi-million dollar benefits.”

Renato Bossolan
Asset Management Programme Manager, ISA CTEEP, Brazil

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John Woodhouse

With 30 years’ experience in utilities, oil & gas, transport and other sectors, John is one of the most widely known experts in integrated asset management projects for some of the largest companies in the world.

John is a Founder and Life Fellow of the IAM; he has written 4 books, chaired the development of BSI PAS55 and represents the UK on the ISO55000 committee.

He also led the international MACRO and SALVO collaboration projects in optimised asset management decision-making.

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