ISO 55000:2014 Asset Management - Overview, Principles, and Terminology

The provided content from iso.org: Asset Management Capability Models discusses various aspects of asset management, including capability models, maturity levels, and best practices. The content covers topics such as electricity distribution in Australia, condition monitoring in engineering assets, and data quality management. It also touches on themes like business excellence, strategic management of information systems, and sustainability. The overall goal is to provide insights into effective asset management strategies and capabilities.

Running head: Asset and Facility management 1
Complex Data Management Issues in Electricity Power Distribution
[Author Name(s), First M. Last, Omit Titles and Degrees]
Queensland University of Technology

Asset and Facility management 2
Executive Summary
Data management is a complex system whose implementation strategies calls for quality, cost
effectiveness and efficiency. The Life Cycle based Asset Management captures the hierarchical
structures within the specific enterprise resource system and the risk management system for
each asset. This is critical for disaster management during storms and extreme weather incidents
among other risks. Power systems reliability also needs a successful implementation plan is
which depends on the asset performance and capability models adopted. This report explores the
IT asset management of an innovative approach in a government set up. This includes operations
within the transformers, assets such as switchgears and towers for maximum performance and
reduced costs.
Energex Ltd is an Australian based government agency supplying electricity to more than 1.4
million customers in Queensland region. This city distributor has operations across its supply
system that need a stable supply of electricity through a single entity. Its interconnections stem
from the National Electricity Market in Australia (NEM). This means that its service operations
is within the national and local government regulations. The management of electricity supplies
systems requires effective analytics to capture its property systems, plant and equipment
functions. This report looks at the implementation of the Asset Management Capability Models
and the Asset Management Capability Model in the government based organization.
Its analysis considers the ISO standardization rationale featuring the ISO55000 and ISO14224
as quality standards for improving asset systems and effective maintenance. Monitoring the cycle
through an effective change process facilitates for a reliable power distribution system that is in
line with the business and customer needs. The ISO14224 Life Cycle of Assets facilitates for the
reduction of failure rates and redundancy. On the other hand, the ISO55000 supports proper
outcomes through the control of numbering, events and consequences for informed decisions.
Efficiency and effectiveness of the asset management system lies within these factors. A
competent system needs an Asset Management Plan (AMP) with a contemporary simulation
model applicable to the specific needs. It has a risk management system for disaster management
such as during storms and extreme weather incidents

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The literature review looks at the lifecycle of assets in electricity power distribution, risk profile,
power system reliability and its maintenance. Through secondary data collection, it analyses
asset management across different power systems for reliability and maintenance approaches. It
reviews the Computerized Maintenance Management Systems (CMMS), Process Control
systems and Conditioning Monitoring. Risk reduction in the plant and role based systems is
important for security, system and network management. This analysis supports an integrated
approach and an effective maintenance for assets in electricity distribution system for a
competitive edge.
The data from the current situation provides real asset data on the company’s maintenance plans
and service distribution. The discussion includes ways of improving the system for the
maximization of usage and the reduction of costs using a reliable software. Asset management of
an IT system needs a business model for customer satisfaction as well as predictive risk
management mechanisms. The ISO the ISO55000 and ISO14224 Design is suitable for the
digital age, and it covers the whole lifecycle. This discussion highlights the connection between
the software application and the Energex business model.
Keywords: Complex data management, Risk Management, Digital Asset Management,
information systems, Life Cycle Asset Management, Asset Management (AM), electricity power
distribution, IQM-CMM
Table of Contents

Asset and Facility management 4
Executive Summary.............................................................................................................2
Complex Data Management Issues in Electricity Power Distribution................................6
Introduction..........................................................................................................................6
2.0 Literature Review..........................................................................................................6
2.1 Asset Management Capability Models......................................................................8
2.1.1 Asset Management Delivery Model...................................................................9
2.1.2 Asset Management Excellence Model................................................................9
2.1. 3 IQM-CMM (Information Quality Management-Capability Maturity Model).11
2.1.4 The Digital Asset Management (DAM) Maturity Model Version 2.1..............12
2.2 Summaries of Model Deficiencies and Comparisons..............................................12
3.0 Asset Management Capability Model..........................................................................13
3.1 Asset Management Processes..................................................................................13
3.2 Asset Management Functions..................................................................................15
3.2.1 Asset Management Software............................................................................16
3.2.2 Security Challenges..........................................................................................17
3.3 Asset Performance Measurement, Evaluation and Improvement............................18
4.0 Data Collection Methodology and Tools.....................................................................21
4.1 Research Questions..................................................................................................22
5.0 Analysis.......................................................................................................................22
5.1 Transformer asset life cycle.....................................................................................23
6. 0 Case Study Background..............................................................................................25
7.0 Improvement Plan........................................................................................................26
7.1 Short Term plan.......................................................................................................26
7.2 Long term Plan........................................................................................................27
8.0 Recommendations........................................................................................................28
9.0 Conclusion...................................................................................................................30
10. References....................................................................................................................31

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Complex Data Management Issues in Electricity Power Distribution
Introduction
Electricity distribution is a complex system, which involves high-risk management. Its
process requires an Asset Management Plan (AMP) with a risk profile of each of its asset levels
(Haines & Hodkiewicz, 2014). A reliable plan needs a quality maintenance model and a
capability model that monitors the processes, functions and measurements. As an integral part of
asset management, it has a risk-based life cycle. A report by PWC on financial reporting for
power and utilities acknowledges the need for constant research and monitoring of power and
utility activities (PWC, 2011). The critical pillars for improved power usage are the real assets
and their components. These include the transformers, cables, towers, overhead line wiring
system and the switchgear. The maintenance issues in this system include maximized
performance, replacement and reliability issues. ISO 55000 and the ISO 14224 present global
standard policies for asset management to ensure a continuous and growing network (Shin &
Jun, 2015). These motivate financial efficiency, process viability, risk management and improved
services. Computerized Maintenance Systems ensure efficiency in the power generation process
through the prevention of impairments, and transmission failure. Using standardization as a
better process of data management and strategy, this discussion focuses on the transformer asset
and electricity distribution processes, control, maintenance and distribution management.
2.0 Literature Review
Asset management is unique for different industries and companies (GHD, 2014). The Asset
Management Council (ACM) defines asset management with a focus on asset integrity, its
functionality, safety, leadership and skills (The Asset Management Council, 2017). An asset
management process needs a plan that involves a management policy, strategy objectives and
maintenance and delivery plan. This is critical because an effective asset management reduces
the rate of failure within a distribution life cycle (Quezada, Szatow, & Liley, 2012). It captures
the network performance, its capability and reliable modes. It is also instrumental in cost
effectiveness because of the improved distribution. Fixed assets include the property, plant and
its equipment. Asset components include the distributed assets namely the transformers, cables,
overhead lines, switchgear and towers. The service components include the distribution,
utilization, operational design, costs and strategic planning as shown in the figures below.

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Figure 1: Energy supply chain networks (Ernest & Young, 2017)
Figure 2: factors influencing electricity distribution costs in Australia (News, 2016)

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2.1 Asset Management Capability Models
Kerry & Robyn (2015) specify that asset management thrive on a capability model
framework. The Asset Management Maturity Model (AMCaMM) is an integrated system with
different processes and levels of a capability indicator. The electricity power distributor depends
on a distributed generation (DG) system, which has clearly defined capacity units, appropriate
location, type of network and technology used (Khatod & Viral, 2012). This model supports a
continuous supply system to meets the growing demand. Research points out that Australia’s
energy intensive demands call for a reliable energy supply that goes beyond the costly blackouts
and peak hours (Kerin, 2014). This means a synchronization of total assets like generators and
structures in the electricity distribution system such as poles and wiring systems.
Suwnansri (2014) identifies the transformer as a major asset in electricity distribution.
This is a vital link in the electricity distribution network because it affects the life cycle process.
Its maintenance issues include visual inspection, electrical tests, unstable system, damage and
failure. The figure below points out the central role played by transformers in the electricity
storage and distribution process.
Figure 3: Electricity grid showing storage technology and key assets (EIA; , 2012)

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2.1.1 Asset Management Delivery Model
According to Stirna, Grabis, Henkel, & Zdravkovic, (2012), the evolving organizations
today need a capability driven approach to service delivery. This is an integration of the
organizational growth and development process with its Information Systems (IS). The figure
below shows a summary of a capacity delivery model for a continuous improvement process.
This approach advocate for the use of appropriate technical, business, financial, risk based and
operational plan in the processes. It identifies performance indicators and the business capability
within a specific context. In this case, an organization focuses on the service demand, system
engineering, configuration, acquisition, operational and maintenance as well as continuous
improvement processes (Siano, 2014).
Figure 4: The 2014 Asset capability delivery model (The Asset Management Council, 2017)
2.1.2 Asset Management Excellence Model
The maturity of an electricity distribution network stems from a cycle of growth. Located
in South Eastern Queensland, Energex Ltd exits in a mature market landscape controlled by the
government. With a market share of 15.5%, the government owned company boasts of assets in
$13.3 billion and a distribution network of 25,000 square kilometers, which covers remote as
well as densely populated regions (Energex, 2014). The Energex power distribution network
faces threats such as the rapid adoption of solar systems as alternative energy usage. Capability

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models provide guidance on software input with safety and environmental concerns. The
installation of technology systems at the poles, wiring systems, transformers and substations
determines the mechanism of the flow, supply and consumption at the accumulation meters as
well as the specific electricity demand. That is why Ahlemann, Stettiner, Messerscmidt, &
Legner ( 2012) suggetst that the Asset Management Excellence Model is a type of AMCaM with
a wider dimension of the critical processes. This data systems approach evaluates various options
such as the delivery, operational (equipment) governance, knowledge management and risk
management as shown in the table below.
Reliability Management of Life Cycle Operational Excellence
Distribution process Life cycle Waste reduction
Plant maintenance Management of error Elimination of loss
Reduced failure rate Standard utilization Risk mitigation
Risk reduction Quality controls Change management
Enhanced reliability Effective series Stable systems health
Table 1: Factors in an operational excellence system
Figure 5: Asset management excellence for Life cycle costs (LCC) (AtKearney, 2011)
The figure above shows an asset management model based on costs of introducing data
management approaches to one asset or a complex unit and the development of varied scenarios

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in a lifecycle. The electricity distribution network keeps evolving over time as determined by the
supply and demand in a capacity-based process (AtKearney, 2011). Operational excellence starts
with systems set up and develops a maintenance plan within the lifecycle cost and performance
indicators. Service providers depend on strategy for an appropriate direction on efficiency
control and maintenance (Porter & Tanner, 2012).
2.1. 3 IQM-CMM (Information Quality Management-Capability Maturity Model)
Gonzalez, Fernandez, & de la Pena ( 2016) agree that advanced technology aides the
distribution and transmission processes through improved reliability of assets. Quality
maintenance leads to improved perfomance and asset management at critical points of an
electricity distribution process. using quality engineers, optimization of asset management and
improved asset health require advanced algorithms that control failure rates and circuit
breakages.
Figure 6: Six critical elements of data management strategy including quality

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2.1.4 The Digital Asset Management (DAM) Maturity Model Version 2.1
The DAM model is an optimization of the processes at a competency level involving people IS
and processes. This systems model acknowledges stakeholders involved as drivers in an asset
management plan. It highlights their benefits and techniques. It looks at the teams involved and
the service delivery models without ignoring the role of quality management and continuous
improvement (Cameron, 2011). In this approach, the technical expertise compliments the
streamlined functions through organized workflows and integration points. Its areas of focus are
the infrastructure, and the hierarchical structures featuring the people, information, systems and
process management (Bradley, Li, Lark, & Dunn, 2016)
Figure 7: Critical elements in a DAM structural model (Collins, 2012)
2.2 Summaries of Model Deficiencies and Comparisons
The incorporation of an IS into a process or organization is a strategic plan. The DAM model
helps an organization to define its competitive edge because it highlights the unique attributes of
an organization into unique levels with 4 categories and 15 sub classifications (Pearlson,
Saunders, & Galletta, 2016). However, it needs a structural or eco system and it builds on other
models. IQM-CMM emphasizes on quality in information for economic productivity. It has a
high focus on accuracy and robust systems. This becomes a limitation because of the high
standard definition of quality, which applies to different industries and is more costly (Reichert &
Weber, 2012). The Asset Management Excellence Model is an optimization approach for
financial, risk, compliance and service output. It enhances a brand’s image and it improves
stability. Hill, Jones, & Schilling (2014) discuss how different organizations thrive under
different conditions because they have different modes of strategic approaches. The use of Asset

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Management Capability Delivery Model concentrates on efficiency at the expense of other
optimization factors like quality and management practices (Kwon, Lee, & Shin, 2014).
3.0 Asset Management Capability Model
Asset management is a systematic approach to maintenance, upgrading and operating
tangible and intangible assets (Cosic, Shanks, & Maynard, 2012). Globally, the government
spends a considerable amount of money on electricity distribution systems. However, there are
challenges such as:
 Aging infrastructure
 High cost of electricity outages
 Unexpected risks such as weather effects
 Reliability in electricity supply
3.1 Asset Management Processes
Electricity generation depends on natural resources and it has complex supply and
demand factors. Constant changes in the market system also requires regular maintenance and
upgrades to meet the growing demand. The Asset Management Capability Model provides an
optimization approach for a multilevel system in a dynamic industry (Igor, Kyeong, & Bae,
2012). Asset management needs and infrastructural development for a sustainable service
delivery process (Mezger, 2014). It creates a competitive advantage whose system personnel,
procedural and technological implementation has a holistic approach. Asset management
connects business, technology and economic objectives of an organization. As an information
system, it provides a logical approach for lifecycle delivery, asset management strategy and
planning, risk and knowledge management.
The ISO 55000 is a global feature of asset managemet system that works with different
assets to provide technical specifications on the improvement on an assset base, improvement,
implimentation plans (ISO, 2014). The ISO 14224 is a maintenance system for best practice
procedures and distribution networks. It provides analytics for equipment and power distribution
for event analysis (Oshiro, 2017). Contemporary asset management strategies rely on data based
maintenance that adheres to international standardization. It covers safety standards, risk
management, lifecycle costs, reliability and maintenance and failure rate analysis. Applied
within the planning, system design, implimentation and constant reviews, it guides service
providers on the best asset management approach (ISO, 2014). Asset management capabilities

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define the system through its asset lifecycles. The framework below highlights the connection
between business and asset lifecycle. Compliance to the ISO 55000 value delivery adds value to
the delivery process for reliability and excellence.
Table 2: Definition of the time framework for use under the ISO 14224 (Baggen, Correia, Schill,
& Visser, 2012)
Baggen, Correia, Schill, & Visser ( 2012) identify the importance of data collection as a
way of failure identification in equipment use, failure modes and safety impact of a process. This
analysis provides appropriate information on the mechanisms required for the improvement of
the functions. It highlights the subcategory failure and components through a detection mode. It
also paves the way for conditioned management of failure in mechanisms and plant safety.
Quality systems with international standardization provide additional information such as date of
failure and impact on the plant operations (Baggen, Correia, Schill, & Visser, 2012). Reliable
diagnostics provide leadership and policy strategy for minimization of future failure rates as
shown in the figgure below.

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Figure 8: Asset management systems framework (Life Cycle Excellence, 2016)
3.2 Asset Management Functions
Teece (2012) discusses an asset management system in a routine program that manages
by monitoring and maintaining. This is a systematic process operating in its professionals and
legal framework. Asset management is a response to the changing market environment and
organizational needs for internal and external resource management. In order to serve multiple
benefits in an IT system, an asset management software needs an integrated approach to
functionality for the highest possible outcome (Brown, 2016). Having a clear definition of the
type of failure identifies gaps in the maintenance process for quality improvement mechanisms.
Figure 7 shows the process of asset management in an electricity distribution process includes
reliability, risk management, company objectives and data driven process management. Is case,
asset management includes management across the organizational functions such as:
 Asset tracking
 Work flow tracking
 Supply chain management
 Finance system
 Information systems
 Strategic plan or Performance indicators

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Figure 9: Three main asset Management functions with multiple decisions adopted from Brown
(2016)
3.2.1 Asset Management Software
According to Peppard & Ward (2016), software systems provide solutions in asset
management for low cost integration of IT and business objectives within the asset lifecycle.
This means the installation of IT systems across the planning, requisition, configuration, repairs
and relocations among others. Different assets require specific strategies for its asset lifecycle. IT
asset management supports compliance, configuration, and control objectives. Organizational
assets include policies, procedures and technologies. Figure 8 below illustrates how an asset
tracking software analyses the asset operations and service delivery for effective maintenance
(Symphony Summit, 2017). It provides a simple implementation process that has a routine
methodology and a predictable plan for managing assets in an organization or industry.
Challenges arise in the implementation of measures in specific assets because of the varied
measures required for the improvement and maintenance processes (AtKearney, 2011).

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Figure 10: Asset management lifecycle, adopted from Symphony Summit ( 2017)
3.2.2 Security Challenges
Electricity distribution companies like Energex face security threats in transmission,
generation and distribution of electricity. Threats to asset management at the controls,
transmission lines, communication system and operational levels affect the service delivery
process (Subashini & Kavitha, 2011). Effective asset management facilitates for effective
monitoring and repair on faulty equipment and assets. Control systems within the Asset
Management Capability Modelling enhance capabilities by predicting and identifying gaps in
new infrastructure. IT systems also improve security through service risk management and data
protection at the implimentation, multi ranking and cloud security systems as shown below
(Ernest & Young, 2017). The electric energy system needs an analysis and operational system
that facilitates for security, reliability and stability. A network for improved distribution
management and scientific data bases, the asset management software applies security risk
management across the risk factors (ECCI, 2015).

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Figure 11: Modern risks faced by utilities (Ernest & Young, 2017)
Figure 12: Supply chain system highlighting ISO 28000 Security needs (ECCI, 2015)
3.3 Asset Performance Measurement, Evaluation and Improvement
Global concerns for ecological awareness raise the need for energy efficiency and
environment friendly processes (Bunse, Vodicka, Schonsleben, Brulhart, & Ernst, 2011).

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Government procurement, production processes and services incorporate cleaner energy in
global warming. Sustainability as a major concern in industry development and it calls for new
and improved ways of doing things in line with the contemporary challenges. Asset management
in the manufacturing, production and delivery processes require a green energy need system.
Kurien & Qureshi ( 2011) illustrate the capability management model as a process of monitors
and controls in the supply chain for this efficiency.
Figure 13: Capability roadmap for technology and skills evaluation and improvement (Kurien &
Qureshi, 2011)
Figure 11 supports the Condition Based Maintenance (CBM) approach such as the Time
Based Maintenance (TBM), which is ideal for the prevention of degradation. It predicts
breakdown and offers diagnostics for monitoring failure. This lowers uncertainties to ensure
constant power supplies. It is also an optimization model that enhances productivity. However,
its limitation indicates high costs of acquisition and maintenance and technical challenges of
accuracy and diagnostics (Shin & Jun, 2015). The use of smart grid performance in business
design ensures that the utilities and public service distribution units overcome capacity
challenges in the installation and operational units.
Definition/
Scope
Mission, strategy, goals
Stakeholders
Direction
Capability and perfomance drivers
Challenges
Capability
Road Map
Capability elements
Innovation scorecards
Action Plan
Strategy, risk managament
Recource and investment map

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Rummler & Brache (2012) point out that the Asset Management Capability Model has
an integrated approach, which focuses on performance improvement at the asset and group
levels. The continuous innovation process advocates for strategic modelling that optimizes on
capabilities. Through configuration, an integrated system incorporates intelligent replacement,
performance, maintenance and risk management systems in its monitoring and control power
units. Allan (2013) acknowledges that assets in such systems require a reliable planning, and
asset management approach for increased investment. Important asset management points in the
generation of electricity are the transition, distribution as well as the consumption levels as
illustrated below. Restructuring the power distribution unit calls for efficient asset management
capabilities of the current model and possible plans.
Figure 14: New energy grid for restructuring the electricity system (Svenska, 2014)
Further improvements include global standardization elements. In support of the
ISO55000 and ISO14224, the ISO 28000 identifies the importance of security measures in the
supply chain for controls and continuous improvement (Simon, Karapetrovic, & Casadesus,
2012). Complex systems need a paradigm shift and the evolution of the ISO standardization

Asset and Facility management 20
shows continuous improvements for the industry. Asset management through condition
improvement in a complex system captures the cost and priority factors of a system (Zhu, Sarkis,
& Lai, 2012). The Queensland government carries out an evaluation of the energy needs before
building a reliable framework that is capable of meeting the performance needs. The
performance measures dictate the constant improvement on the capability models for effective
asset management approaches.
4.0 Data Collection Methodology and Tools
The extensive literature review focused on real life case examples and academic research. The
extensive research provides an analysis of the asset capability models. This critical analysis of
the management approaches leans towards complex data management and the lifecycle of asset
management. It carries out a comparison of the Asset Management Capability Models in order to
identify an integrated approach suitable for the contemporary approach. A summary of the
models points at the pros and cons. A major focus on the Asset Management Capability Model
unfolds the significance of these models in the industry, power generation, collaborative
innovation, routines and integrated systems.
The secondary data analysis considers journal articles, books, reviews, online resources and
conference proceedings. The use of case study analysis provides a deeper discussion on the
specific models and the practical use in a large organization. The secondary data includes
research findings from primary data collection and secondary research. An analysis of data base
designs simplifies the model categories for better comprehension. The data collected includes
information from the Australian government and private organizations as well as local and global
publications.
The research sought to discover critical factors in the asset maintenance, product demand,
efficiency, reduced wastage, energy efficiency and the technical skills required. The expected
outcome was to analyze maintenance activities and their contribution to efficiency. It also brings
out the importance of having systems upgrades in line with the organizational, industry and
global standards. The study looks at an integrated approach in which predictive models,
preventive and reactive methods come into play for risk management, cost effectiveness and
efficiency.

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4.1 Research Questions
The project asks the following questions:
 What asset management actions are appropriate for the electric power distribution
system?
 What risk management approaches are effective in asset management for a contemporary
power distributor?
 Are these asset management strategies compliant with ISO 55000 and ISO 14224?
 What improvement mechanisms are reliable for a large-scale power distributor?
 What are the advantages and disadvantages of innovation in asset management?
 How can an organization incorporate environmental and safety factors in asset
management activities?
 How can a distributor assess the data of an asset life cycle?
 How can the maintenance and monitoring strategy include the ISO 14224?
In the end, the project hopes to address the following objectives:
 To management network risks, cost and performance outcomes in a power distribution
channel.
 To incorporate ISO 55000 in the improvement of asset life cycle management, asset data
and information breakdown.
 To incorporate contemporary technology in the electric distribution network for best
practice and improved customer service.
 To maintain and improve the Life cycle of Assets in line with the ISO 14224 standards.
 To ensure that the asset management activities are environmentally sustainable
throughout the asset management process.
 To reduce the failure rate of asset management life cycles.
5.0 Analysis
From the research questions, an electricity distribution company needs to include efficiency as
an asset management plan. It reduces the cost of electricity distribution through less power usage
for reduced maintenance expenditure. It is also evident that upgrading the Energex systems also

Asset and Facility management 22
affects the customer servive. Innovation is a contninous process that involves the installation of
an upgrade or improved features. This project also identifies maintenance activities as multilevel
and multifaceted in a power disctribution network. It also acknowledges that scheduled
maintainace prevents the rate of failure and that datasheets improve the lifecycle of energex
capability models by preventing mistakes and controlling the outcome. It also points at the
transformer as a critical asset in the network.
Figure 15: Energex asset lifecycle model
Using the company’s tripple lifecycle strategy for asset maintenance an mangement team is able
to identifies a transformer asset failure through a prediction of oil spillage or potential failures.
Asset Capability Models identify the condition of the assets, perfomance and risk failures. It also
has a mechanism for preventng unacceptable conditions through a corrective and replacement
process. Finally, the company’s reactive method utilizes the risk and cost factors. This makes it
reliable for the high population and it has low chances of failure.
5.1 Transformer asset life cycle
The transformer as the central focus needs a continous management process that captures the
industry’s and regional power supply needs. Its regular operations and maintenance should be
within the cost factors. Optimization equipment protection and automated controls are important
in checking the plant reliability, possible risks and costs respectively. The scheduling process
compliments different phases of the cycle as shown in figure 16 below. Figure 17 highlights how
to monitor the frequency of failure rates.

Asset and Facility management 23
Figure 16: Transformer asset management cycle (PSI, 2017)
Energex asset monitoring policies support the ISO 55000 in support of critical processes for
quality asset management. Its life cycle comprises of the following:
 Procurement for repair parts in the system
 Planning for new projects, monitoring and maintainance
 Design of an innovative system
 Construction of distribution substations and asset locations
 Network Operation for the central and susystems
 Refurbishment of aged networks and outdated systems
 Analysis of the operation ability of the asset and rate of failure
The plan also has asset replacement, retirement as well as disposal mechanisms. It is also evident
that Energex is keen on adopting asset management plans that enhance capability as well as the
organizational objectives. Merging these components of a complex model that meets the assets
perfomance measurements, evaluation and impovement.

Asset and Facility management 24
Figure 17: Monitoring the frequency rates for transformer failure rate (Bartley, 2017)
6. 0 Case Study Background
Asset management is critical in the electricity distribution process. It ensures a sustainable and
continuous process that meets the growing demand. However, an effective asset management
plan is necessary for a power distribution network. A reliable model needs a standard of quality
and that supports viability, risk management, sustainability and efficiency. This project considers
the power distribution case study in order to find out more about asset management in a network
risk management, cost and performance controls under the electricity distribution network.
It looks at Energex Limited, which is located in Queensland as a growing network in need of a
reliable asset management plan. Located in a busy region where energy use is on the rise,
Energex represents a high optimization system dedicated to quality networks with high security
standards. Energex annual report ( 2016) identifies the limitations within its substations
including transmissions, and feeders. Among these are:
 cost factors
 load overflows
 replacement
 refurbishment
 upgrade and

Asset and Facility management 25
 introduction of alternative feeders
limitations in substation equipment such as transformers present maintenance challenges.The
company shows multipe gaps in the refurbishment process raising the need for improved
standards. According to the report, Energex also needs proper monitoring and operational
strategies that can forecast the transofrmer loads while monitoring growth.
From the Energex Planning Reports (2017) the company has electric and magnectic fields
located in South East Queensland. The company policies indicate the importance of reliability,
safety and costeffectiveness. As part of the policy plan the company also has a sustainability
appraoch that caters for environmental concerns. The company is also keen on avaoiding conflict
of interest and risk management. Other policy priorities also include the health and safety plan,
public interest and quality. These are critical issues forming Energex objectives and important
perfomance factors in asset management.
7.0 Improvement Plan
Assets in electricity distribution undergo lifecycle management in order to improve, repair or
replace them (Wang, Vandermaar, & Srivastava, 2002). These repairs include internal and
external elements which if ignored pose a risk to the utility. Risk management in this case
includes checks to prevent the rate of failure. Preventive measures include routine checks and
regular testing. The condition-based maintenance covers the equipment, plant networks as well
as the electricity distribution networks. Proper diagnostics through technology tools identifies
these gaps through internal monitoring systems for timely fixes. Predictive analytics is an asset
management approach that checks the capabilities of a system through data mining, in order to
avert uncertainties. This happens through data readings on equipment performance, process
analytics, instrument performance, computerized maintenance, and control of distribution
(Assertivity, 2017). Different asset management models are favorable to different assets and
functions.
7.1 Short Term plan
Energex Queensland represents a complex structure in a complex industry. Successful
implementation depends on various factors including past performance and process optimization
factors (Lin, 2007). Before upgrading an asset in a complex network, it is important to consider

Asset and Facility management 26
the outcome as well as future calamities such as power outage from extreme weather conditions.
From the findings, Energex has a concrete asset management life cycle. Its threefold mechanism
is integrative and tries to resolve common asset management needs in an electricity distribution
industry. Asset Management Capability Models provide solutions for checks and balances across
different capability frameworks. An integrated approach with captures the asset functions
processes and its improvement needs (Hill, Jones, & Schilling, 2014). By taking data based
analyses, the competent system makes diagnosis, predictions, and reactions on appropriate
measures for the organization. A closer look at the pros and cons of the models identifies an
integrative system as ideal for a complex system like Energex. This approach considers critical
areas of each subcategory to fill up the existing gaps across a whole system. It is able to address
the daily and peak power distribution challenges through the simulation model.
7.2 Long term Plan
The project further identifies the ISO 55000 and ISO 14224 as appropriate data and information
management systems for a complex data system because of the risk based approach (Goerdin,
Mehairjan, Hanea, Smit, & Van Voorden, 2015). Effective data forecast of the land area identifies
substation needs for proper transformer needs. When this fails, the capacity of the electricity
generation diminishes. The asset management capability has a modeling approach that makes
recommendations for appropriate supplies within the Energex localities in Queensland. It
highlights proper percentages for its domestic load category. Inaccurate readings pose a great risk
to the environment and the equipment in use. Proper limits for electricity supplies within the
domestic and commercial settings is also a priority.
Using the electricity power distribution as a case study, this discussion brings out the
modernization of asset management approaches for improved services. (Ang, Choong, & Ng,
2015). Asset management capability involves the use of models for reduced rate of failure in a
life cycle and it adheres to environment friendly tactics for sustainability. As a national,
distributor the company needs to show its commitment to eco-friendly approaches. By agreeing
to the National Electricity Rules for Queensland, the company ensures that its project
installations and repairs are safe, reliable and effective on costs (Energex Planning Reports,
2017). The ISO 55000 supports this through its distribution plan that has regular updates. These

Asset and Facility management 27
ensure customer satisfaction through a stable electricity supply. Recent development to digitize
its customer service through mobile communication is indication of the continuous process of
innovation.
The Energex Planning Reports (2017) indicate the company’s commitment to reduce risks and
service failures through an emergency service. This makes the Digital Asset Management
Maturity Model an ideal tool for monitoring this. It controls electric shocks and reports details of
fallen powerlines or faulty generators under its emergency segments. The inveolvement of the
customer in this National framework makes the asset management more complex because it
serves millions of customers in different locations. The effectiveness of IQM-CMM ensures that
there is quait maintenance across the assets. In order to reduce costs implication of implmenting
this communication model, the comopany uses affordable channels such as social media.
Understanding the network system makes implimentation easy hence this calls for training of the
staff. Igor, Kyeong, & Bae (2012) supports distribution planing that captures the structural
framework. This means that Energex needs to take a leadership role in asset management for
other non government investors. As a public company, it has objectives that serve the public
good. This makes value addition a critical factor of measuring the asset capability management
process.
8.0 Recommendations
From the analysis, the predictive capacity of an asset management system lies in its risk
management model. Further inquiry into this factor is necessary due to the contemporary risks
involved such as cyber systems. The predictive risk analysis determines the risk profiles for each
of the assets. This ensures that the transformers operate in accordance to the ISO14224 as well as
other inputs. Asset Capacity Management Models are therefore crucial in the decision making
process.
It is also important to note that the review acknowledges the fact that each of the assets is
different. This calls for unique solutions in accordance to the specified needs. The use of a
general approach as stated by the Energex Asset Cycle Management Strategy presents limitations
in varied capacities. The Asset management Excellence Model supports optimization of the key
performance elements. Splitting this to different assets is one way to ensure that the solution
addresses the important measures in an asset.

Asset and Facility management 28
Energex is a government organization, which may have different business models from a private
organization. Although Energex addresses cost factors as one of its challenges, it faces
complications of adopting high optimization asset tools and devices, for higher revenue returns.
This point towards its limited predictive, reactive and preventive methodology. The company
may neglect financial risks, which are contributing factors to system upgrades and failures. Thus,
the relevance of technology is not limited to the three categories enlisted by the company.
Competitive advantage is also a significant element adopted by government organizations.
Energex shows a gap in proper assessment plan within its asset life cycle program. This calls for
an optimization process that shows the projected refurbishment as well as replacement
expenditure profile covering each of the assets. This contributes to the development of a reliable
ERP model such as PREDI. This is an innovative software, featuring a unified data flow for to all
its assets.
The Energex organization needs an advanced distribution system with an asset management
system that is easily accessible. This allows customers and stakeholders to access accessible
appropriate systems times for convenience and emergency response. This means that the crew
and operator can access systems as much as consumers can utilize mobile communication.
Managing assets through reliable management plans within the annual or five-year plans may not
be viable because of the continuous process of change. Innovation is dynamic and unpredictable.
Asset Management capabilities Models and professionals handling process need to upgrade
constantly. The company needs a flexible plan that accommodates for disruptive technology in
the industry. In order to gain a competitive edge, Energex needs a customized approach to asset
management. Finding a smart approach that gives the company a unique approach with high
efficiency and cost effectiveness remains a challenge.
9.0 Conclusion
Finally, the asset management procedures in an electricity distribution unit is complex. An
analysis of large companies such as Energex, AGL and SA Power Networks reveals these
complexities intertwined in the functions, processes and performance measures. From the results,

Asset and Facility management 29
it is evident that aligning the real life case to the asset management models is a challenge, which
needs a holistic approach. Therefore, evaluating the utilities is necessary to ensure that the power
distribution network does not fail. Regular maintenance for replacement and upgrade of the old
systems indicates the constant need for change in innovation.
Therefore, the implementation of an asset management model is flexible and subject to change in
accordance to industry changes. The location of an electricity distribution system is also critical
because of varied rules and standard regulations such as safety measures. The case study
considers the electricity distribution system in an Australian based power company. Located in
Queensland, it falls under its local jurisdiction and its asset management procedures follow the
companies and national specifications. This is a developed country and companies like Energex,
AGL and SA Power Networks stick to international standards. Among this is the sustainability
and environmental laws which ensure energy efficiency and green approaches. The use of
different asset management procedures increases the complexity of such a large system complex
creating the need for advanced technology.
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