Scottish Water, a company providing water and sewerage services, faces major challenges – the rate of technological change, infrastructure age profiles, differing functional demands, new legislation, financial constraints and competency concerns, all combine to create a perfect storm for critical asset management decision-makers. With asset management systems, including risk management, relating to assets with a replacement value of over GBP 40 billion, Scottish water drives an investment program of over GBP 500 million per year. The SALVO Process helped Scottish Water to determine what interventions were really worthwhile, and when, in the management of aging assets. To date, Scottish Water has completed a number of these facilitated workshops and SALVO studies on a diverse range of assets and equipment, an example is detailed below.
This study set out to provide the cost-optimized frequency for undertaking a Tier 3, time-based intervention for an Inlet Archimedes screw pump – bottom bearing, taking account of any additional cost impact linked to failures in a duty/standby application. Scottish Waters’ current policy is ‘run to fail’.
An assessment was carried out to understand and determine the optimal refurbishment strategy. Following an initial data-gathering exercise, a workshop was held to incorporate operational and local knowledge, and to validate the data. The Strategic Asset Lifecycle Value Optimisation Decision Support Tool (SALVO-DST) has been used to produce the analysis.
The maintenance curve shows that the most economic time to intervene is at year 6. The unplanned maintenance curve increases sharply after this point indicating an increased risk of failure of the bottom bearing and consequential damage to the other components of the screw pump.
The Strategic Planner recommends that the business should plan to replace the bottom bearing at year 6. This allows strategic alignment with the top bearing replacement at 12 years, and the 24-year lifecycles of the scroll and screed, and drive, motor, gearbox, and belt drive, allowing the business to make further savings on mobilization costs and drive further efficiencies.
The recommendation from this evaluation is to replace the bottom bearing every 6 years. If this recommended intervention approach is adopted then there is a 97.9% chance of the bottom bearing surviving the 6 year lifecycle.
Cost of recommended strategy over 1 year (GBP) 396,000
Based on 90 assets, the Current cost of the Yearly Program (current annualized cost per asset x number of assets) is GBP 1,701,000.
SALVO has calculated a potential saving over 1 year (current cost – recommended cost) of GBP 1,305,000
Cost per intervention;
Based on the current strategy: 61,500 – 2,500,000
Based on the recommended strategy: 23,500
The SALVO process helps us to identify and demonstrate the optimal timing for asset replacement and helps to identify the optimum frequency for interventions. To find out how SALVO can help your organization make potential savings, contact us for a free initial consultation.
“The SALVO Process has helped us to identify and demonstrate the optimal timing of asset replacement and the optimal frequency for maintenance interventions. The outputs from SALVO are key components of our Asset Masterplans: we are now in the best place we have ever been”
Explore the concept of Asset Management maturity and its impact on organisational success in this insightful case study post.
Grupo Energia Bogota (GEB) is a public utility corporation with more than 125 years of history.
Mutual Energy has been recognised for effective asset management of critical infrastructure by achieving ISO 55001 certification.
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Joe MacEnri is a chartered engineer and ACCA qualified accountant who has worked in the electricity industry and asset management fields for over 35 years. He has many years of experience in the areas of techno-economic and investment analysis in areas such as capital plans and as well as reliability-based investment analysis using Monte Carlo simulations. He has worked with the multinational plastic manufacturer Sabic in their annual capital planning, training staff in the SALVO process and tools, facilitating workshops on individual investment studies, and working with sites to develop their annual constraints optimized capital plans using the AI powered DST Strategic AM Planning module as well as aggregated optimized multi-site regional plans.
With over 32 years of Asset Management, Reliability and, Mechanical Engineering experience in leadership, technical, and operational roles in Oil & Gas, and the Petrochemical industry. Pedro brings a proven track record of success in developing and implementing asset management processes and tools, to facilitate communication between engineers and managers, while establishing a direct connection between business objectives and frontline engineering and operational actions, with strong considerations of Fit for Purpose and Life Cycle cost factors.
Pedro is a strong advocate and Change Agent for cross-functional collaboration between departments orientated to achieve alignment of objectives for the development of efficient and effective asset management solutions. Pedro heads up our Australiasia business unit.
Victoria is a Principal Consultant & our Product Manager for the SALVO Decision-Making Framework.
She has over 20 years’ asset management experience, across transport, energy and defence sectors and is a specialist in asset management decision-making and risk management.
With plenty of hands-on experience developing optimized, risk-based asset maintenance and renewal strategies, and deploying these to develop multi-year investment plans, her industry positions include the Head of Asset Management (Electrical Utility), Manager Network Risk & Performance (Electrical Utility), Associated Director, Safety and Engineering Systems (Government Transport Agency), Team Leader, Asset & Risk Management Systems (Electrical Utility), Team Leader, Structural Safety, Risk & Reliability (Government Highways Agency)
Patrick is a specialist in data-enabled business transformation design and executive-level delivery governance to enable asset- and workforce-intensive organizations to deliver better customer and operational outcomes. He has 30 years of experience in the industry, working at the executive and board levels with critical national infrastructure organizations to shape and lead major value-realization programs with data and digital enablers at their core.
His core skills include Data strategy, Transformation design, Strategic roadmap development, Transformation governance and assurance, Transformation leadership, Business data services operating model design, Data skills and leadership development, and Leadership coaching, and mentoring.
Patrick is also a graduate of the Australian Institute of Company Directors (GAICD).
Susan Steyn is a seasoned expert with over 30 years of experience in Management, Operations, Business Development, and Supply Chain across diverse industries. Her core focus lies in spare parts management and inventory optimization. Throughout her career, Susan has held key leadership roles in multinational companies such as GE, Dow, Roche, Bayer, Lloyds Register, and Woodhouse Partnership.
With a strong background in strategic leadership, P&L management, and lean manufacturing, Susan has consistently driven business turnarounds and growth. She excels in international global business management and has a proven track record of expanding market presence and building strong client relationships.
As a Six Sigma Black Belt and PMP certified professional, Susan is adept at implementing process improvements and managing complex projects. Her expertise in data analysis, project management, and ERP systems ensures effective spare part management and optimal inventory levels.
Susan’s contributions to various companies include revenue growth, cost reduction, successful software launches, and the establishment of strategic alliances. Her commitment to diversity and inclusion, coupled with her leadership in team building and mentorship, have created a culture of excellence in every organization she has worked with.
Overall, Susan Steyn is a results-oriented leader with a passion for leveraging data-driven decision-making and innovative strategies to optimize spare parts management, reduce downtime risks, and enhance profitability in any business environment.
José Luis cuenta con una experiencia exitosa en multi-industrias públicas y privadas, donde desempeñó cargos gerenciales, líder de aplicación técnica especializada, puestos operativos y en mantenimiento, así como en áreas de consultoría sustentando nivel operativo, táctico y estratégico.
Ha formado parte de proyectos de mejoramiento de gestión de activos, confiabilidad operacional, integridad y mantenimiento en Latinoamérica en diferentes empresas creando valor al negocio con resultados técnicos y económicos importantes.
Facilitador e instructor acreditado en temas relacionados con la gestión de activos, mejores prácticas, metodologías de administración gerencial y técnicas especializadas.
Mechanical Engineer with 31 years of experience. Specialist in implementation processes of activities
associated with Asset Management under the ISO 55001 approach, Implementation of diagnostic
programs and audits of management systems, Specialist in applying reliability methodologies such as
Reliability-Centered Maintenance, risk-based inspection, Cause Analysis Root, Life Cycle Cost Analysis,
Condition Based Maintenance, Failure Modes and Effects Analysis, Mechanical Integrity among others.
He has been an Equipment Mechanical Integrity Engineer, an experienced user of traditional NonDestructive Testing such as Ultrasound, Infrared Thermography, Superficial Techniques, Industrial
Radiography.
He has led and participated in countless applications in the field of reliability and condition monitoring,
with special emphasis on the generation and execution of policies and maintenance plans aimed at
achieving the “minimum total business impact” guaranteeing Safety, Hygiene and Environment
standards.
Over his 28 plus year span in the industrial sectors with working technical backgrounds in Project & Construction Management, Asset Operations and Maintenance Reliability Management, and being certified in various courses of study; Damien has gained the knowledge and experience and has had proven successes throughout his tenure in the Oil, Gas, Petro-Chemical and Construction sectors. Establishing his-self in the various sectors, Damien’s first experience and success started in the Construction Sector in estimating engineering. This was the stepping stone for Damien and has paved the way for his passion and continued success in supporting People, Process, and Systems in an organization.
Damien has held positions in local, international and multi-national corporations and comes from a working background in the fields of environmental, operations, project and construction management, operations maintenance and reliability management, planning, supervisory management, and has proven his abilities to succeed in each field.
Rich was an Engineer and Project Manager professional at the New York Power Authority for over 30-years. In addition to being the first Project Manager for the Niagara Project Upgrade, Rich rose to be the Vice President of Engineering having started in Operations Engineering decades earlier. Rich went on to be Vice President, Transmission and Substation at AECOM responsible for hundreds of millions of dollars in design and construction. Rich joined Woodhouse Partnership, North America and participates in aligning organization towards ISO 55000 and many reliability studies supporting DST.
Executive in Operational Excellence, Asset Management and Best Practices in Projects, Operations and Maintenance in the Energy and Industrial Sector.
Consultant, Instructor and International Lecturer on issues related to project management (risk management), operational reliability, strategic management of operations, maintenance, Asset Management in the energy sector (ISO 55001) and Applied Data Analytics.
PMP, CMRP, IAM and CAMA certifications, being recognized by the SMRP in 2019 as CMRP of the Year https://smrp.org/2019-CMRP-Winners.
George has over twenty-five years of experience as a consulting engineer providing design, planning, program and project management, and strategic asset management services for asset-intensive organizations in the Americas, Africa, and the Middle East. His primary focus has been in the public infrastructure sector; as a result, he has intimate knowledge of the assets, processes, and resources necessary to deliver and sustain safe, reliable services to the customers of public asset-owning organizations.
George has assisted organizations with the development of PAS 55, ISO 55000, and GFMAM AM Landscape aligned asset management systems (AMS), has performed gap analyses of their AMS against industry standards and best practices, and has guided them through the creation of strategic asset management plans (SAMPs), asset management plans (AMPs), AM policy and supporting documents. He has undertaken asset risk modelling to ascertain organizations’ capability to sustain their desired levels of service. George has performed asset health-informed lifecycle cost modelling and forecasting capital and operational expenditures over near and long-term planning horizons.
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.
