Achieving Excellence in Work & Asset Management

Accelerating the journey to high performance power supply

Todays power supply companies are under growing pressure to increase the life of assets and minimize downtime from unexpected production outages. Like other industries, asset operators competing in todays business environment must operate efficiently, increase resource productivity and reduce operating expenses.

The overall approach and execution of a robust work management process is a critical aspect of meeting these challenges. Many of todays asset operators are facing challenges in developing holistic work and asset management capabilities to successfully meet these challenges and reaching a level of high performance. A number of common causes have impeded asset operators ability to develop the necessary capabilities behind a robust work management process. Many are illustrated in the figure on following page. Additional obstacles that have arisen in recent years include:

Many generators have deferred

A significant amount of maintenance

capital improvements over recent years increasing the overall cost of maintenance as a portion of operating costs. Cost reductions have eliminated many administrative staff members, increasing the clerical responsibilities of plant maintenance personnel. Personnel are challenged to accurately capture all the data needed in a timely manner. Generating assets are aging assets that result in rising maintenance requirements. An aging workforce means that significant institutional knowledge regarding the effective maintenance of current assets could be lost or diminished.

work is programmed and never revisited (e.g., preventive maintenance work orders). Planning and scheduling capabilities are either limited or poorly integrated with resource availability resulting in poor coordination and work delays. The core systems at the heart of a generators work and asset management processes and controls are often manually intensive, provide inadequate reporting and information management, are fragmented or verging on obsolescence contributing unnecessary day-today operating risk.

Performance Management
Limited metrics Conflicting metrics across maintenance and operations Limited visibility to metrics Unclear alignment between metrics and day-to-day responsibility

Governance
Maintenance cost control processes ill-defined Maintenance processes controlled at site level Limited control of maintenance performance/ spend at corporate level Ineffective gate review processes for maintenance projects

Cost Reporting
Delays in availability of maintenance cost data Inconsistencies in cost tracking across sites Limited granularity of cost data complicates analysis and control

Coordination
Poor coordination between maintenance, engineering and operations Operations defers maintenance without regard/ insight to assess impact Operations does not assist in inspection or light maintenance activities

Material Management
Limited visibility to material availability or lead times Multiple site specific stores with few controls Informal procurement channels Lack of trust in procurement tools

Service Management
Rarely review utilization to assess in-sourcing options Infrequent reviews of service provider quality or qualifications Poor scheduling results in high service costs Limited controls for service provider costs

Craft Training
Limited training/ qualification tracking capabilities Lack of training curriculum and lesson plans Limited capture of knowledge capital of older workers Breakdown of apprenticeship programs

Standardization
Inconsistent understanding of prioritization scheme and equipment impact Inconsistent work order data capture Provision for CMMS training but not process training Poor documentation and understanding of maintenance processes

Planning/Scheduling
Short-horizon, tactical scheduling with limited communication Lack of standardized job plans Gaps in estimating/ planning capabilities and training Poor service/material management Limited coordination

Reliability
Maintenance intensity not driven by impact FMEA analysis not completed for high impact assets Ineffective PM management Limited application and poor follow-up on RCFAs Inconsistent application of reliability techniques

An effective work and asset management solution can streamline business processes, improve insight into asset health, optimize maintenance work, balance resources at optimal availability and maximize resource utilization. Defining and implementing an effective work and asset management capability is a key success factor that high-performance companies are addressing. To achieve and sustain a high performance work and asset management capability, generators must pursue it as a strategic capability. If it is designed and executed as an integrated capability, generators can improve coordination, reduce costs and increase the capacity and flexibility of their operations.

We know what it takes to be a high performance generation business

Accenture has distinct capabilities to help generation companies address todays competitive challenges. We bring deep industry experience, highly skilled professionals, innovative delivery approaches and the strength of our global experience. Using our High Performance Utility Model asset as the foundation, Accenture can help generation companies quickly assess their Work and Asset Management capability gaps and improvement opportunities. Output from this assessment becomes the foundation for developing a roadmap for progressing

toward high performance. Figure 2 provides a overview of the key components of a high-performance work management function. Accenture helps its clients address their challenges by focusing on the delivery of governance, work and asset management work processes, enabling technologies and human performance improvements. In our experience, most critical elements for ensuring the long-term success of a maintenance program include:
A holistic work and asset

management strategy
Clearly established governance

mechanisms

 Standardized work processes that

leverage leading technical enablers

Clear performance metrics Aligned human performance

framework An integrated application and technical architecture Accenture offers the following work and asset management capabilityrelated services:
Work and asset management

capability assessments Business process and standards definition including process streamlining and integration of enabling technology such as mobile devices, wireless capabilities, and barcoding/ RFID Training design, development and delivery

 Performance management frame-

improvement opportunities. We catr*(.eagement)-9.3( )]TJT-mTJT-mTJT-mreporting capa d59 T

works and reporting capabilities

Work and asset management system

evaluations, implementations, and upgrades Accenture has collaborated with leading power generators and other asset-intensive industries in their pursuit of work and asset management improvements. Through implementation of these projects and industry research, Accenture has developed a unique perspective on the anatomy of high-performance asset operators. Leveraging our High Performance Utility Model asset as a foundation to assess an organizations current work and asset management capabilities, Accenture can quickly identify

We help our clients achieve high performance

Work management kiosk for power generation
A large nuclear power operator in North America was focused on improving the effectiveness and consistency of its clearance and tagging process on its entire plant fleet spread across more than a dozen sites. The challenge in accomplishing this objective was to blend the cultures from each plant and implement business change through a common process and technology solution. As part of a Ventyx systems integration

The emphasis on change management was a key element for the success of the project.

For more information, please contact: Daniel Krueger Global Managing Director, Generation & Energy Markets +1 312 693 7015 daniel.p.krueger@accenture.com

Jose Marcos Chaves +55 21 4501 9068 jose.marcos.chaves@accenture.com James Garside +44 161 4355079 james.garside@accenture.com Joost A.C.N. de Haas +31 20 493 8169 joost.a.c.n.de.haas@accenture.com Bernard Henquet +33 1 5323 5538 bernard.e.henquet@accenture.com Jay Ramdhani +27 11 208 4191 jay.ramdhani@accenture.com Stephan Werthschulte +49 211 9120 64950 stephan.werthschulte@accenture.com

Richard Warner +44 20 7844 3663 richard.warner@accenture.com

Asia Pacific
Jack Hogan +61 39838 7173 jack.g.hogan@accenture.com Michael Ding +86 21 6391 5588 michael.m.ding@accenture.com Vivian Wu +86 21 6391 5588 vivian.y.wu@accenture.com You may also visit: www.accenture.com/utilities5

North America
Dean Elliott +1 469 665 5223 j.dean.elliott@accenture.com Andrew S. Webster +1 713 837 4496 andrew.s.webster@accenture.com

Europe, Africa, Latin America

Claudio Arcudi +39 02 7775 1290 claudio.arcudi@accenture.com

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About Accentures Utilities Industry Practice

Accentures Utilities Group works with electric, gas, water, and wastewater utilities building bridges to meet rapid marketplace change. Our extensive utility knowledgecombined with an integrated suite of methods, people, and assetsprovides executives and their teams with the necessary strategies and tools to position their organizations for success in the new market realities. In an industry where change and reinvention have become the norm, experience is a critical asset. Over 30 years experience in the industry Our more than 7,000 utility industry personnel work with approximately 305 clients in 43 countries to meet the unprecedented changes facing todays utility companies. Accenture serves 72 percent of the Fortune 500 Utility companies in North America and 83 percent of the Global Fortune 500 utilities worldwide

About Accenture
Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With approximately 158,000 people in 49 countries, the company generated net revenues of US$16.65 billion for the fiscal year ended Aug. 31, 2006. Its home page is www.accenture.com.