1. Asset Management Control Systems Approach Introduction 2009 John Stavenuiter PhD in AMC Founder of the AMC Research Foundation and AMC Centre Program Director Sheet: 1/26

2. AMC in Business Mission Goals Strategy Objectives Objectives Vision Share Holders Value Share Holders Value Business Goals e.g.: Increase revenue and profit Increase market share Reduce costs Increase employee productivity Offer new customer services Modernize outdated technologies Optimize System Cost-Effectiveness Business Goals e.g.: Increase revenue and profit Increase market share Reduce costs Increase employee productivity Offer new customer services Modernize outdated technologies Optimize System Cost-Effectiveness Business Strategy e.g: Enhanced Infrastructure Enhance Business Expertise Establish Financial Instruments Establish “Asset Integrity” Business Strategy e.g: Enhanced Infrastructure Enhance Business Expertise Establish Financial Instruments Establish “Asset Integrity” Performances Sheet: 2/26 AMC Domain AMC Domain

3. Asset Integrity vs Asset Management Control Asset Integrity is the ability of the asset to perform its required function effectively & efficiently whilst safeguarding life & the environment. [Bureau Veritas, UK] Asset (Integrity) Management is the means of ensuring that the people, systems, processes & resource, which deliver integrity, are in place, in use & fit for purpose, over the whole lifecycle of the asset. [Bureau Veritas, UK] Asset Management Control is the management approach to manage and control all logistic processes (specify, design, produce, maintain and dispose) to meet the operational need by optimizing the ‘System Cost-Effectiveness’, over the asset lifecycle. [AMC Centre, NL] Sheet: 3/26

4. E.ON MPP3 coal-fired power plant Capacity: 1.070 MW (7% of NL need) Realization Cost: ~ 1,2 Billion Euro. Commission: 2008, Start-up: 2012 System Cost-Effectiveness View on Performance View on Cost System Structure Logistics Process Structure Technology Actors serviceability applicability attitude skills mindset knowledge Asset Management Control The AMC “Systems Thinking” Model Sheet: 4/26

5. The AMC Business Case YEARLY TURNOVER or BUDGET $ OPERATIONS MATERIAL LOGISTICS AMC & STAFF PROFIT/ SAVINGS ReduceCost ImprovePerformance Figures of Merit: - Return on Investment - Pay Back Period - Overall Profitability Sheet: 5/26

6. AMC Focuses on: Reduce Cost Reduce Cost Improve Performance Improve Performance It’s all about People, Processes and IT, but…. To achieve: System Cost- effectiveness effectiveness Sheet: 6/26

7. Start thinking from “The Asset” The Logistic Process Cycle as binding element around “The Asset” People, Processes and IT! for giving meaning to: People, Processes and IT! Ref. WCM Consortium Sheet: 7/26

8. How to Structure, Manage & Control the… People, Processes and IT? Sheet: 8/26

9. Structuring Based on the NL Defense Results 2007 Functional Model Sheet: 9/26

10. Managing Management by Objectives: System Cost-Effectiveness Installation Performances Product Quality Actor Services Sheet: 10/26

11. Controling Management by Exception on: Performance Killers & Cost Drivers Sheet: 11/26

12. Sheet: 12/26 Asset Management Control it’s all about: Work Methods & ProceduresWork Methods & Procedures Organizations & ActorsOrganizations & Actors Tools & TrainingTools & Training

13. Structuring Work Methods and Procedures Sheet: 13/26

14. Structuring Organization & Actors Sheet: 14/26

15. Structuring Information & Communication SLA Report SLA Contract Performance Based Service Contracts AMICO Designed for Managing: - Performance Killers - Cost Drivers - Lifecycle Issues (TCO) System Information & Cost & Perform. Data

16. AMC KPI Information Pyramid Sheet: 16/26

17. AMC Overall Data Set Actors System Requirements Prod. & Serv. Specifications Prod. & Serv. Installations FunctionsSystem Characteristics Technical Data Packages Actor Specifications System Definition Function Characteristics Function Definition Installation Characteristics Installation Definition Sheet: 17/26

18. Ref.: www.amicoservices.nl The AMC Web Environment Sheet: 18/26

19. IT Business Architecture Web Environment Company Legacy Data Environment SPP Interface Engines VALIDUserInterface Sheet: 19/26

20. GPRS Secured Information Device Extended Connectivity................ Sheet: 20/26

21. Advanced Education to deal with this all Hypotheses: - Getting the right Tools is half the Work - Professional use will double the Production Over 100 Teaching Modules, all developed by Problem Based Learning (see www.ilcentre.nl) Theoretical Study Practical Study Production Curve after Training Investment Period Pay Back Period Production Curve before Training Return on Investment Classical Approach Sheet: 21/26

22. The AMC Master of Science as highest level of education MASTER OF SCIENCE IN ASSET MANAGEMENT CONTROL MASTER OF SCIENCE IN ASSET MANAGEMENT CONTROL Sheet: 22/26

23. AMC Research based on MSc Study Cases from different organizations VIETNAM Chile Organizations Students Enrolled from Sheet: 23/26

24. USE PROFILE-FUNCTIONS-INSTALLATIONS-PROD.&SERV.-PROCESSES-ACTORS-RESOURCES-BUDGET-VTC/RTC Case Study Assignment Case Study Assignment How to ‘Balance’ the Logistics Process Cycle over the Lifetime Sheet: 24/26

25. Results are captured in the AMC Power Plant Portal Sheet: 25/26

26. What are the benefits? Grip on System Cost-Effectiveness by……. BEING IN CONTROL! Thanks for your attention john.stavenuiter@amccentre.nl www.amcplaza.com The AMC Knowledge Portal Sheet: 26/26