TransGrid – Asset Excellence Program

1. Executive Summary

TransGrid’s Vision is to become leading edge asset managers setting the benchmark for asset management practice and performance. This will build upon the strong baseline established with our ISO 55001 Certified Asset Management System.

TransGrid has progressed an Asset Management Excellence program to improve on the established baseline. The design of this program has used an innovative approach which included:

  • The use of a range of tools and industry knowledge.
  • Using AM Maturity models to direct improvement effort.
  • Specific improvement initiatives and their delivery integrated into business as usual processes.
  • Top down governance and management oversight.

This structured approach to excellence has defined and delivered a range of initiatives in capability, asset information, management system integration, asset planning processes and management review.

2. Description of Project

TransGrid’s Vision for Asset Management is to become leading edge asset managers setting the benchmark for asset management practice and performance nationally and internationally. Our multi-year journey has seen us maintain our certification against ISO 55001 in November 2017, creating a strong baseline of good asset management practice.

To move forward to greater maturity levels, TransGrid has progressed an Asset Management Excellence program to improve on the established baseline. The design of this program has used an innovative approach which included:

  • Reviews of AM Maturity models to support setting intentional improvement targets.
  • The use of a range of tools including GFMAM, AMBoK, and AM Capability Frameworks to identify opportunities for improvement.
  • Specific improvement initiatives delivered as business as usual.
  • Top management governance and oversight.
  • Ensuring there is value in the included activities.

2.1  Program Methodology

2.1.1 Maturity Assessments

The maturity results from the 2017 Asset Management System recertification audit were a key input to the review of the AM Planning process. The maturity chart below shows a general improvement across all areas from the certification audit in 2014. Three areas were identified as targets for improvement during 2018:

  • Planning:
    • Actions to address risk and opportunities for the Asset Management System.
    • Asset Management objectives and planning to achieve them.
  • Support:
    • Information requirements.

Figure 1 – Asset Management maturity against ISO clause

These planning elements were selected as focussed improvement areas where considerable value versus effort was expected.

As part of the journey towards excellence TransGrid has commenced utilising a 39 category model as detailed in the ‘The Asset Management Landscape (2nd Edition) – Global Forum on Maintenance and Asset Management’. An external advisor has reviewed TransGrid against this benchmark with the results shown in the following diagram. This analysis has assisted in being able to more specifically identify the processes for improvement.

Figure 2 – Asset Management Maturity against GFMAM (yellow line)

2.2  Key Improvements

2.2.1 Asset Management Capability

TransGrid’s certifier identified Asset Management competency as an area for improvement. While it has strong competency management for construction, operations, and technical skills for field personnel it did not have a structured framework for managing Asset Management competencies beyond the requirements listed in an employee’s position description.

In order to close this gap TransGrid engaged external advisors to develop an Asset Management Competency Guideline. A draft guideline was provided based upon the Institutes of Asset Management’s (IAM) Capability Framework. This identified competences into 7 groups containing a total of 28 identified capabilities.

TransGrid developed the draft into an approved document by refining the mapping in the draft and using it to assess, at the employee level, an individual’s actual capability against what the requirements of the role were. The results of this allowed gaps to be identified that can be used in the individual employee’s development plan.

This work was in the early stages of rollout when in early 2018 a corporate initiative was initiated from the board to review capability management across the entire organisation. As part of this initiative the Asset Management Competency framework was embedded into the corporate program to maintain alignment to the IAM Capability Framework. This included the development of an on-line assessment of capability against this revision using an 180o assessment methodology. This online tool allows the AM competency requirements to be included with other technical competencies (engineering, financial etc) so that the development of AM capability is seen as part of business as usual.

TransGrid’s certifier has confirmed that this work has fully addressed their areas of concern.

2.2.2 Asset Management Information

TransGrid’s 2014 ISO55001 certification identified Asset Management information as an area for improvement and this has been an ongoing focus throughout the first certification period. The last remaining improvement identified in our Asset Management System certification is related to its Asset Management Information Strategy. The fundamental issue was to refocus this strategy on information used in asset management decisions rather than that on asset information systems.

TransGrid has commenced a process in 2018 to completely revise the current Asset Management Information Strategy. The objective of this process is to create a strategy focused on identification of an Asset Manager’s information requirements in a top down approach based on answering the core questions and sub-questions that an Asset Manager asks. This review was based on the following good practice guidelines.

  • SSG (Subject Specific Guideline – 22, 23, 25) – Asset Information, Strategy, Standards and Data Management – Institute of Asset Management
  • Asset Management – an anatomy– Institute of Asset Management
  • The Asset Management Landscape (2nd Edition) – Global Forum on Maintenance and Asset Management
  • AMBOK – Companion Guide to ISO55001

The revision of the strategy based on asset management information has a goal of ensuring that clear information requirements can be communicated to information systems related projects and ensure the outcomes of these will result in improvement to asset management outcomes.

TransGrid’s certifier has reviewed the proposed changes in the November 2017 surveillance audit and indicated that this body of work is moving the Asset Management Information Strategy to be a much more mature and effective document.

Figure 3 – Asset Management Information Requirements

2.2.3 Managing Integration of Multiple Systems

TransGrid, either through licence, regulation, or good business practice requirements, holds a number of related management systems for Electrical Network Safety, Asset Management, Health and Safety, Environment, and Business Management. These systems have overlapping requirements in terms of frameworks, processes and procedures.

TransGrid performed a mapping exercise of the functions that make up the ENSMS to provide the visibility of overlaps and interrelationships between the processes and procedures that make up the ENSMS and AMS. This resulted in the reduction of duplication and auditing effort for its Asset Management and Electricity Network Safety Management Systems. This mapping has allowed TransGrid to clearly articulate the system that is responsible for managing a particular process or procedure to internal stakeholders and external auditors.

Reduced on-site interview and evidence effort for the formal audit of its NSW ENSMS from the support by ISO55001 recertification, and ability to combine audits requirements of the Victorian and NSW regulators are examples of practical value obtained through this mapping.

Figure 4 – Management System Process Integration Summary

2.2.4  Revision to Asset Management Planning Process and Data Analytics 

TransGrid is committed to providing value to the community through investment in a safe and secure network, enabling a stable market at the lowest cost to our customers. A successful investment decision is demonstrated when the asset management planning processes and resulting plans are linked to all stakeholder requirements and deliver on this commitment.

To enable this TransGrid has completed an end to end review of the asset management planning process as detailed in our associated Asset Management Cost / Risk Performance Award entry. Critical gaps were identified regarding the clarity of investment decision making criteria, ability to integrate information from various sources, awareness of how commercial and safety processes fit together and demonstrating the alignment between investment decisions and the Asset Management Objectives.

In order to address these gaps, the following activities were undertaken:

  • Improved definition of the decision-making criteria and their linkage to stakeholder requirements.
  • A review of the required asset management information and its criticality as part of the Asset Management Information Strategy.
  • Creating a visual representation of the end to end process.
  • The development of an Asset Analytics Tool to integrate existing data sources and provide a single view for analysis and asset decision making.
  • Data cleansing and improvement to allow flow of information between systems.

These improvements now provide:

  • The linkage of individual investment to regulatory safety requirements and AM objectives.
  • A single view of asset risk in the one tool that aids making the most effective asset related decisions.
  • The trade-offs between the capital and operating programs of work that optimise life cycle cost.

Figure 5 – Asset Analytics Tool Framework

2.2.5  Strengthening Management Review

TransGrid utilise a strong committee and audit structure in order to monitor and review the performance of its Asset Management System. Executive leadership have expressed a strong desire to have clear view of not only the issues that occur within the Asset Management System, but also what has been done to prevent these occurring again. In addition compliance to AS5577 Electricity Network Safety Management Systems requires that processes are audited by independent (internal or external) competent personnel.

TransGrid has undertaken a process of continuous improvement to strengthen the committee and audit structure that includes:

  • Clearly defining the structure and high level communication flows between the various committees.
  • Ensuring that the attendees are at the right managerial level to support the forum and be able to make informed decisions.
  • Reinvigorating the working groups at the operative level of management to ensure forums exist for discussing issues at all levels of the organisation.
  • Ensuring that the committee objectives and charter focus on creating value added change to the organisation and not just a tick and flick of performance KPIs.
  • In line with the system integration discussed in section 2.2.3 the internal audit plan has been updated to cover auditing of TransGrid’s Asset Management and Electricity Network Safety Management systems.
  • Internal independent auditing as required by AS5577 has been actioned by reinvigorating the Control Assurance Review. This review puts emphasis on ensuring that controls identified in TransGrid’s asset handover, maintenance plans and formal safety assessments are in place and effective.

Figure 6 – Asset Management Committee Structure

2.3  Program and Project Management

The Asset Management / Asset Systems Compliance team has primary carriage of the maintenance and improvement of TransGrid’s Asset Management System. This includes a program management role for this range of initiatives.

Oversight of the key changes to core elements of the Asset Management System is via the Asset Management Committee. This is chaired by an Executive Manager with oversight of the overall Asset Management functions and includes the entire TransGrid executive leadership team.

Progress on these initiatives was reported to the Asset Management Committee other review forums as appropriate.

Changes and communications and awareness activities to accompany the improvements were managed using the Asset Management System Change procedure.

3.  Stakeholder Engagement

The main teams involved and their contributions are:

  • Asset Management – Asset Systems and Compliance:
    • Overall program management.
    • AM capability development and roll out.
    • Management System integration work.
    • Co-ordinating the Asset Management Committee processes overall.
  • Asset Management – Asset Analytics and Insights:
    • Co-ordinating the Asset Management Information Strategy Enhancements.
    • Implementation of the Asset Analytics Tool.
  • Corporate Services – People and Culture:
    • Integration of the AM Capability Framework in the Corporate Capability framework and assessment tool.

The approach also leveraged off four external providers to ensure relevant industry knowledge and experience is captured. The packages of work were:

  • AMS certification and surveillance.
  • Maturity assessment and resource assistance for the program.
  • The analysis of the Asset Management Information Strategy gaps and the facilitation of workshops to provide the material for its review.
  • The provision of additional resources as required.

4. Benefits

The structured approach to excellence has defined and delivered this range of initiatives, ensuring that effort has been applied to parts of the business where the most benefit can be gained. The integration of improvement activities will ensure that AM maturity and capability continues to approve beyond the baseline of certification.

An overview of the benefits is given in the following table

Asset Management InformationBetter understanding of information requirements to allow targeted data collectionFocus on data and decisions, not systemsReduced data handling and manual intervention between systems
Asset Management CapabilityIntegration of AM Capability assessment into corporate wide performance planning processOnline tool to view and store capability assessmentsFull integration with Corporate Capability Framework
Management System IntegrationSynergies across processes  Reduced costs
Revision to AM PlanningClearer decision criteriaBetter portfolio analysis tools and reportingImproved portfolio optimisationImproved process awareness and understanding
Management ReviewClearer communications to / from senior management regarding AMVisibility of AM decisions and performanceIncreased collaboration and awarenessAM improvements becoming business as usual
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