Asset management in engineering is a best practice that explores critical aspects of an infrastructure (Jardine & Tsang, 2013). The management of water supply systems is a continuous process that requires concrete decision-making processes. Understanding the structural formulation and interactions in an engineering process calls for an analysis of its cyclic processes, asset inventory and condition as well as cost strategies. Effective asset management is efficient if it addresses the key elements of a process. The water supply system in an urban setting comprises of water pipeline networks or capital assets.
When making plans for repairs or replacement, engineers evaluate the conditions of an asset and its performance in order to establish the extent of damages and resources required. The system theorists define a system as an integrated, interactive and interdependent functioning that has a centralized focus (Gond, et al., 2012). The configuration of a water system looks at the structural elements, aims and objectives of an organization and the systems integration. In the contemporary systems, consideration for the environmental factors is also important. The critical assets in a water network includes the pumps, motors, pipes and water collection facilities. When doing this system analysis, important factors to consider are, age, condition and severity. The physical barriers, water collection process and its storage factors are also part of the organized system. Engineering project managers use the PAS 55 AND ISO 5500 as standard quality procedures for the optimization of the physical assets.
The Dubai Electricity and Water Authority (DEWA) is an example of water supply network with an asset management strategy (Dewa, 2017). The Dubai based organization has corporate strategies with key performance indicators. The system incorporates environmental, social and financial aspects in its performance. Its corporate strategies trickle down to the engineering processes including asset management. Motivated by stakeholder business approaches, this model covers excellence in operations. Currently DEWA supplies water to more than 500,000 consumers. The system also supplies electricity and part of its strategies include sustainability approaches like the use of solar energy and hydroelectricity (Epstein & Buhovac, 2014). It shares its strategy with its stakeholder network including suppliers, contractors and consultants. Its asset management strategy comprises of tangible and intangible assets.
Critical assets required for sustainability of this plan starts with the identification of causes of failure in a system. Important determinants of successful implementation includes human factors, mechanical, computer system failure, electrical and hydraulic. The DEWA water supply system has a water purification unit, dam water collection point, water storage reservoirs, towers, pressure vessels, pumping stations, and pipe network. This is a public utility with an infrastructural management system that that regulates and controls the distribution points (Szabo, 2011). Funded by the government the DEWA asset management plan expects minimal costs of the plan for the best funding option.
Its 2021 strategy indicates DEWAs plan to feature as part of the 4th Industrial Revolution (Government of Dubai, 2017). Constant review of its strategy has seen the improvement of its management approaches for a competitive strategy. This plan trickles down to its substations and operation networks. As part of asset management, the project has undergone renovations in order to increase water flows. Contemporary city infrastructure involves complex projects developments to meet the growing demands in the market. The management of a water system calls for an analysis of the of its asset elements in support of the structural lifecycle and the cost analysis. Some of the expected benefits of this process include:
Asset management has benefits to the organization. It reduces on maintenance and implementation costs. This control system targets the lifecycle activities in an operation. Through a feedback mechanism, the operation manager is able to deduce findings on what hinders the optimization of a process. Asset related activities include maintenance, asset acquisition, assessment, replacement and human operation (Brunetto, 2014). These are important because they influence the engineering activities in a lifecycle. The role of strategic management is to manage the subcategories of the systems engineering and its asset management procedures. Although research findings largely lean towards asset lifecycles, organizations also important in the process because of the structural plans that they put in place in order to achieve a competitive edge (El-Akruti, et al., 2013). The figure below shows climate conditions and population trends for policy changes by the government and industry players in the water industry.
Asset design considers the asset need or usage, support systems, operation of an asset and its removal. Water systems use an integrated system for required interactions and effective relationships between the elements.
Figure 2 below identifies some of DEWAs procurement including energy efficient appliances. This is a demonstration of its eco-friendly strategy within its asset management units of operations. It defines asset management with reference to the activities, organizational strategies and customer satisfaction for a competitive edge. In this description, the end justifies the means because the underlying factor motivating the organization is the impact of the operation management. The design process combines the coordination mechanisms and the functions for the best performance.
Problems in the design capabilities of an asset often interfere with the asset capabilities. The design affects the life cycle of an asset because of fluctuations in its operations. The figure 1 below shows how to optimize the operation efficiency of a pump in a water system. In order to reach the best efficiency point (BEP) it is important to consider whether the pump may be operating outside the stated design. It is also possible that the pump is operating at various modes of operation. These factors describe the reliability factor of an asset hence the use of a Reliability Centered Maintenance model by DEWA (Fischer & Bertling, 2012). This is a balance of the human, technical and resource factors. When there is poor performance, a project engineer needs to check for asset failure in order to prevent further risks.
The level of activities within an operation include the execution of critical parameters, a monitoring system conditions the assets for safety, functionality and effective operations. The managerial significance includes the connection of interfaces, supervising and assessing measures and standards to use. This auditing process inspects the system structure for reliable recommendations. These must be strategic and strategic for the organizations benefits. Internal factors influencing asset management include the technological, legal and environmental standards. The process identifies the need for change before making suggestions for renewal, refurbishment or renewal. Some of the challenges encountered in the asset management process include, increased demand for water services, asset life and minimum cycle. Since DEWA applies the ISO 5500 standardization, it will check for effective implication of these standards (Harvey, 2015)
Geraerds (1972) coined the maintenance theory which supports reliability in engineering works. Managers and system designers today uphold high standards when innovating engineering systems. DEWA has a plan to incrporate solar equipment in its plants. An analysis of its preliminary installations should give an indication of the perfomance measures for the asset systems. An integrated syste seeks to maximize on the asset utility of different segments os DEWA structure. Strategic decisions in the maintenance and repair units prioritice on utility while minimizing n the risks. Scarf, et al (2007) discuses a two cycle replacement procedure for industry specific operations. In the article, modified models of replacement can achieve effectiveness if they address issues of delays and failure in a system. Changing the control of a function must be within the confines of an organization.
An effective asset management system needs to have reliability and efficiency. Failed systems are those, which fail to deliver the expected performance. These could be outdated assets in an old system. The ISO 55000 standards indicate the value of an asset in relation to the organizations delivery expectations (BSS ISO 55000 Series, 2017). For example, one of DEWAs goals is to incorporate energy efficient asset for sustainability measures. This is also in agreement with its national, global and regional stakeholders. With the customer at the center of its strategy, proper utilization and care of the asset system removes the non-performing or damaged parts for quality high optimization ones.
The applicability of a standard, framework or a model and utilizing or tailoring it to the need within the asset management system for improving the management of a particular asset or set of assets in any organization or industry. It also explores the role of this engineering asset management system in the organisation management system and organizational strategy. PAS 55 describes the British Standardization of optimum asset management. It highlights the management of specific assets in a systematic and coordinated manner. This process of managing assets over a lifecycle depends on the organizational strategies applied in the activities, and practices (Campos & Marquez, 2011). This standard definition is important because it enables engineering organizations to achieve efficiency by optimizing all its assets for the best outcome. If DEWA wants to realize its value, it needs to balance its costs against risks and benefits within a set time span.
On the other hand, the global ISO 55000 recommends optimization when making decisions about risk management or cycle processes. Through a systematic, proven approach, the standards recommend:
As the ISO5000 identifies asset management, its segments the ISO5501 provides specific details of effective asset management for an integrated system. This is an effective enterprise asset model for serious organizations lie DEWA. The ISO55002 offers guidelines for implementation.
The system functional model reveals a flow of activities in a system (Jardine & Albert, 2013). This features the organizational and systems engineering processes. Multilevel and multifaceted teams give a reflection of the general process with a feedback mechanism of activities. This includes the system asset design, development, tools development, training, managing, supporting and controls.
Before developing an ideal asset management plan, it is crucial to ask questions about the current state of assets and the associated technique. These are the core factors of analysis (Kapferer, 2012). For example when the manager inquires about what to do in case of a pump failure, it is critical to consider the cycle condition first. The condition in it determines the type of data standardization, system diagrams and condition analysis used. The questions represent different levels of an asset management.
Asking about the demand for the water services in Dubai brings up answers about regulators that DEWA needs and the performance required. The customer demand analysis is a critical tool for this question. In order to check for sustainability at the product supply level DEWA supervisors consider the failure rate of some assets and the cost of repairs. Environmental consequences encourage the brand to adopt alternative sources of power. Since the cost factor is one of the most intriguing in asset management, the organization may design a project plan by asking about the alternative options available. The feasibility of the plan determines the lifecycle costing, renewal decisions and failure response mechanisms. Finally, the preparation of a long term approach calls for an inquiry into financial resources and the best Total Asset Management Plan (Hill & Hill, 2012). The figure below highlights an interface management process with a coordinated process as well as functions. The five core management questions address issues at the subsystems concerns.
The asset management system features all possible business conditions. Besides the design, it includes asset acquisition, cost factors, suitability and utilization. The enterprise system functions covers the value chain activities featuring the inputs, inbound activities (assets, primary and supporting activities) and their outputs. Within these are policies, action plans and monitoring systems. The external environment is as important as the internal markets. Among this is the market competition, political, economic, social, technology and others. The diagram below summarizes this interaction.
Asset reliability is one of the critical factors used to predict the asset failure rates. Output activities such as these also comprise of repair schedules, improvement plans and asset redeployment. DEWAs planned improvements will determine whether the water improvement includes a dam, reservoir and in which location is appropriate. Reviewing decisions about the assets, remaining life starts with a study to establish the asset replacement. The maintenance concepts have a resource plan with budget forecasts. Decisions include using the right technology, competitive products in the process and consistency. In a risk management plan, the life decision incorporates actions required to mitigate or eradicate the problem. Maintenance actions include asset activities and a summary of network issues. The lifecycle analysis of a water system also has a renewal plan with criteria while the New Works plans evaluates any new implementation plans.
A financial analysis complements any asset plan because the organization has to limit itself to its resource base. DEWA is a national corporation with a multimillion-dollar budget. In 2016, it had a Request for Proposal plan worth AED 100 billion for the Dubai Green Fund in support of clean heathy energy (DEWA, 2016). Operation managers in the water supply and management sectors need a clear breakdown of the budget. A replacement cycle budget could incorporate the affected functions ad reasonable timeline for the project. Substations have smaller projects besides the main project. When making plans, the quantitative analysis may have a time series analysis to help the planning team to make prediction based on the asset trends over time. A budget theme could feature an annual or 0-20 years depending on the magnitude of the asset replacement projections. The figure below identifies the hierarchical breakdown of the asset management plan for a large project. It shows a rationalized plan with categories of asset management.
An article by Metering (2016) indicates that in 2015 DEWA made an agreement with a global technology firm Huawei for improved smart meters and data abaysis. This is a plan to match the growing market demands of technolgy devices and applications. Making such changes has positive and negative results. The implimentation of pilots highlighted cybersecurity concerns, and smart services for customers satisfaction. The CEO Mr. Al Tayer Mohammed reafirmed Dewa’s commitment to international standards. The implementation of a plan does not stop there. Quality control measures incorporate a continuous process of improvement. A comprehensive plan captures the user’s feedback in order to attain a customer satisfaction approach (El-Akruti, et al., 2013). The customer as the user has a say in quality issues, safety, and environmental matters. Dewa has an internal structure that identifies the asset management process done and its business model. Customer experiences determines the success of a brand in the global market. Contemporary consumers want convenience and timely services.
Analysis, evaluation and decision making go hand in hand. Asset related performance identifies and seals the gaps in a system. It paves the way for decisions based on the lifecycle of a water supply asset management plan. This is instrumental in identifying the strategy, solution and developing the plan. Improvement involves compliance with a strategy through an implementation plan or establishment of a new system. The ISO 5000 and the PA 55 for verifying quality, efficiency and safety elements. Best practice dictates that organizations have to design their success pathways. Competence forces from the market environment determine the success of an organization (Scholes, et al., 2013). The water supply industry continues to face challenges due to environmental factors. This threats the success of a nature resource industry. DEWAs Key Performance Indicators include:
DEWA has the opportunity to invest in modern ERP for better output. Technology tools and equipment enhance the optimization while minimizing the costs. Dewa needs and advanced monitoring system with techniques that monitor and provide diagnostics on a large system.
In order to DEWA to gain a competitive advantage, it needs a maximization process of utilization. Processes and functions need to be in line with the lifecycle costs. A safe environment must also cater for risks arising from legal and compliance issues. The Dubai government has safety regulations involving:
The Dubai Society of Engineer has more than 40,000 accredited members (Society of Engineers, 2017). The skilled professionals also have protection under the labor and social affairs law. Having the right skills means having the engineering certification, from an accredited and internationally recognized institution. Winning plans also demonstrate high maximization of asset utilization while reducing the cycle expenses. A high reliability within the system with innovativeness also creates an edge.
Operational managers, the managerial team and strategists cooperate under the same umbrella for a common goal. In this case example, the management team at DEWA works in teams of operational activities. These are maintenance teams, customer feedback, technical crew, project managers, engineering designers, IT teams, data managers, customer support and others. These will monitor and maintain processes in line with the asset designs. Quality assurance is by verification of the standard functionality and operability. Managerial activities such as planning, supervising, implementation, auditing, inspection, safety control, procurement and deployment also matter. Coordinating such a large unit requires a multilevel and multidisciplinary structural framework (Bhatt & Paneria, 2017).
The engineering asset management has a system framework made up of people, products and processes. A complete system approach is appropriate when designing a solution for DEWA. This system is made of an innovative process with technology, hardware, and skilled personnel (Willems & Polderman, 2013).
The systems thinking is strategic because it identifies the need for change, external influencers, and the decision criteria for the asset cycle. Monitoring allows the management team to set the standards for policies in procurement. It is ideal if DEWAs sustainability plan reflects on the type of products used such as LED lighting systems. Verification for compliance with legal systems and global standards at the acquisition levels makes the process much easier. The organizational structure at DEWA has a flexible structure that captures technological and environmental strategies. Interwoven together, these strategies enhance the control of the asset management plan to allow implementation of strategies within the subsystems. Personnel managers at DEWA employ different strategies in the implementation of within the functional systems. These are employees in these are employees within the technical, management and other areas. DEWA system represents a clear model of managing smaller systems and functional definition of the components. There have an external relationship in which the systems interact in its long term and short term objectives.
The management systems view of asset management looks at the business approach. It is about creating a sustainable performance management plan with a low cost. In this context, asset management is about the transformation of a failure mode using the most affordable plan (Leonard, 2011). Systems may fail as a whole or in parts. Different professionals have responsibilities in the management cycle. An engineer trains in Asset Management in order to manage the processes effectively. Human error accounts for a number of mistakes and DEWAs commitment to professionalism and quality becomes evident. In order to handle defects within the pipe networks or water pumps, DEWA needs an advanced conditioning approach with a framework for sustainable performance, DEWA’s Enterprise Asset Management System.
The DEWA Framework for engineering asset management entails a strategic management and engineering asset management. This captures the best tools for application and adaptation. This is a complex process showing an integration of the interfaces with other functions. The figure below is a demonstration of an asset management model for a multidepartment approach. In this model, data standards, feature in the value chain(Bhatt & Paneria, 2017). The assessment process checks the effectiveness of implementation at the hierarchical and system layout to release data on the expected life cycle. A valuation determines the asset replacement date while the balanced score card checks the performance metrics. In a reliable system, the regular ratings, maintenance, and strategic validation dictates the validation process for the desired strategy.
Asset management activities support the development of a technical system. The multiple engineering frameworks captures quality elements (El-Alkruti & Dwight, 2013). There are seven elements in an asset management plan, which could work for DAWE. The best value service delivery captures:
This is the quality element related to DAWE’s objectives of offering reliable services. Like other asset management cycles, DAWE has a demand cycle, knowledge of assets, costing and strategic planning among others. The audit process should reveal a continuous improvement process. Quality processes compliment the practices. For example, in 2015 DAWE made an analysis of its sustainability approach and came up with a business risk assessment leading to the implementation of its solar and hydropower solutions (Dewa, 2017). The design of an asset process incorporates the ISO standards, which support the following asset contexts:
The role of asset management system is to fulfil the organization’s strategy through an effective process. Strategy development and implementation depends on the management cycle. Asset management in an engineering process starts with a system process and lifecycle costing. Risk management is also an integral part that water supply systems cannot ignore. Research reports indicate that the United Arab Emirates is one of the richest nations but the population increase is a challenge (Szabo, 2011). With a population of more than1.9 million, the region has limited resources. Although there is a global water crisis, the UAE has harsh climatic conditions and poor conservation trends. The high consumption rates threaten the survival of the natural resource.
DEWA has a strategy to develop its water system by 60%. This is a high magnitude project for water connectivity at a national level. The plan is to kick off in 2030 and affects the whole infrastructure. Pipeline repairs, schedule upgrades and substation repairs are some of the activities in question. Whatever direction it takes, the plan must have a strategic plan with a focus on DEWAs main agenda, which is sustainability. Asset management engineering in this case study will reduce environmental issues such as flooding, pollution and conservation. It will also address optimization factors in its repairs, replacements and preventive measures.
The EUT model developed by the University of Eindhoven is a good example of a maintenance model (Geraerds, 1990). It covers the strategic management and engineering asset management aspects with relevance to the organizations technical systems, assets and workloads. This means that the planned increase of DEWAs water supply to 10,000MW by 2018 complies with the solar power plants and its company portfolio. This model also captures the human resource aspects to ensure that the project hires specialists and certified Assets and Maintenance technologists with an ability to strategize, plan and implement a maintenance project. The infrastructure of a national asset plan is complex and involves a multi sectorial approach.
DEWA is a government owned company with global partners like UNDP, Al Lama an Trading, British Safety Council and Beta Tech among others. The management of these strategic partners is part of the strategy (Brunetto, 2014). The management of a maintenance process will depend on the demand. The figure below shows a configuration of an integrated system with logistic support, a concrete maintenance plan and corporate business plan. This is Total System Support (ToSS) for railway engineering developed in 1991. Dewa’s use of this use of technology systems needs to adopt its enterprise concepts for an improved asset lifecycle maintenance.
The EUT model serves numerous situations and is applicable in cases where process cost management is necessary. It monitors areas where there are technical faults for corrective measures in the function. The EUT works effectively in a process with multiple assets such as the substations in DEWAs treatment processes. It favors increased benefits at the starting point and technical personnel management and it gives a feedback process for the management team to design a management concept that gives it a business advantage (Porter, 1985).
The asset management process for a national level water supply system is complex. It involves engineering designs, consultations, checklists and funds. Established companies like DAWE undertake projects systematically. Having tested the waters with its initial hydropower and solar energy replacement project, the government funded corporate feels ready for a wide scale plan. In order to succeed, its plan must have:
Similar to other operations in engineering the use of six sigma and lean methods compliment the sustainability agenda for high optimization. A combination of strategy may work in a multidimensional project but to gain a competitive edge, the corporate organization also needs to synchronize its functions with operations.
Conclusion
Asset management engineering in a complex system like the DAWE is multidisciplinary. It involves different stakeholders from the government to private, and NGOs. In order to define an asset management strategy, it is important to understand its complete network system. The system theory provides a reliable method of breaking down the asset management practices and functions. Strategy is important in asset management because it incorporates the organizations objectives and strategy drivers. This contributes to the development of a competent system for managing an engineering process. In the example of DEWA framework, there are quality standards, which add value to the organizational process. The ISO 5000 and its series ISO 5001 and 5002 support optimization and efficiency. Monitoring the effectiveness of an implementation plan takes time. Smart planning involves a breakdown of the people, process and function elements. This is further broken down into system lifecycles, which may also have many stages depending on the type of project. DEWA invests resources in its budget for new installation, maintenance, replacements and removal of assets. Despite the incorporation of strategies from other disciplines like the business approaches, all these refer to asset management in engineering.
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