Iam active asset management 2016
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Transcript of Iam active asset management 2016
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Making Asset Management Active with Analytics
April Hutchen [email protected] McFarlane – Electricity North West
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Agenda
• Benefits - why use Analytics?• Overview of Analytics in Asset Management• What is required?• Dashboards, Reports & Visuals• View from the industry
– Electricity North West’s journey– ‘What if’ scenario modelling’
• Break-out Session - ‘what if’ questions• Close
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Benefits of Prescriptive Analytics
• 7-17% cost savings compared to a triggered or prioritised approach to planning
• Defensible business plans & budgets• Reduced planning costs• Improved customer service levels• Achieve key KPIs, both regulatory and non-
regulatory, at lowest whole life cost
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IAM Asset Management Anatomy
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What is needed?
1. Data – asset health, intervention (cost/benefit), faults, project– Source systems, expert opinion, best practice and data infill
2. Way to analyse information – spreadsheets, software, agreed processes
3. Business Objectives & KPIs – regulatory & non-regulatory4. Business commitment & buy-in from key personnel5. Means to understand and present the information
What is Analytics?Analytics is the use of data to deliver insight & support better decision making• Analytics is a combination of mathematics & statistics, data techniques and
advanced algorithms to quantify and predict performance, risk, condition, service, cost & revenue with rich data visualization to communicate insight
• Successful Analytics projects rely on the experience and expertise of specialists to enable the organisation to understand their data, use it to generate value and communicate effectively to stakeholders
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DESCRIPTIVE
PREDICTIVE
PRESCRIPTIVE
STRA
TEG
ICTA
CTIC
ALO
PERA
TIO
NAL
What happened to our assets in the last 10yrs?
What happened to our assets in the last year?
What is happening to our assets today?
What will happen to our assets in the next 25yrs?
What will happen to our assets in the next year?
What will happen to our assets tomorrow?
What are the future needs of our assets?
What do we need to do to our assets this year?
What activities do we need to tomorrow?
• Historic asset trends • Performance• Reliability• Utilisation
• Demand profiling
• Asset deterioration• Forecasting Risk• Sustainability• Climate impacts
• Long term investment scenarios
• Financabilty • Risk mitigation &
management• Revenue modelling• Supply & Demand balancing• Asset policy
• Customer trends & preferences
• Annual cost & revenue reporting
• Unit cost analysis• Asset reliability & utilisation• Root cause analysis
• Real time monitoring of assets
• Operational efficiency• Early warning of faults• Rapid response to asset
issues• Asset survey
• Reliability analysis• Forecast annual performance• Management account
forecasts• Resource gap identification• Seasonal impacts
• Annual investment scenarios• Annual targets• Assets maintenance planning• Asset utilisation planning• Resource planning• Contractor & purchasing
planning
• Issue identification• Hotspot analysis• Client feedback
analysis• Peak demand forecasting• Weather impacts
• Optimise proactive Investment
• Prioritise reactive Investment• Job scheduling• Customer notification process
Describing Analytics – Analytics Matrix
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Definition of Prescriptive Analytics
• “…the application of logic and mathematics to data to specify a preferred course of action. While all types of analytics ultimately support better decision making, prescriptive analytics outputs a decision rather than a report, statistic, probability or estimate of future outcomes.”
• Gartner predicts that its use will grow from 10% of organizations today using some form of prescriptive analytics to 35% by 2020, making it the fastest growing category of software.
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Analytics & Optimisation Process
Analytics & Optimisation Process
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Understanding & Presenting Information using
Dashboards, Reports & Visual Tools
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Sample Strategic Dashboard – Risk Matrix
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Dashboard – Scenario Comparison
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Water Interventions Dashboard
• Distribution Mains
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ASKING THE RIGHT QUESTIONS
Electricity North West – Phil McFarlane
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Introducing Electricity North West
4.9 million
23 Terawatt hours
2.4 million
£12 billion of network assets
56 000 km of network l 96 bulk supply substations 363 primary substations l 33 000 transformers
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Risk Matrices
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Electricity North West
• Began a journey 12 months ago to understand & implement prescriptive analytics
• Started with a pilot looking at cross asset optimisation across 4 asset classes
• Objectives of the pilot were to understand:– Expected benefits of prescriptive analytics for a DNO– Different optimisation techniques – Benefits of refurbishment options versus replacement
across different asset types– Savings that can be found compared to the current
approach– Run different investment planning ‘what if’ scenarios
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Asking the right questionsSample questions asked during the pilot:
1. Maintain current risk at least total cost. (Baseline scenario)
2. What is the optimal plan with a 5% reduction in expenditure?
3. What is the optimal plan with a risk reduction of 10%:1. By asset category?2. Across multiple asset classes?
4. What is the best risk score with an annual budget cap?
Constraints considered – budget, resource and skill availability
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Dashboards
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Group Workshop
• What would the most useful ‘what if’ questions be for your business?
• Do you have the data and processes in place to look at implementing analytics?
• Why?
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Making Asset Management Active – in Summary• Benefits - why use Analytics?• Overview of Analytics in Asset Management• What is required?• Dashboards, Reports & Visuals• View from the industry
– Electricity North West’s journey– ‘What if’ scenario modelling’
Questions?
April Hutchen - [email protected]