Mutual Energy achieve Global Standard for Asset Management through ISO 55001 certification
Mutual Energy has been recognised for effective asset management of critical infrastructure by achieving ISO 55001 certification.
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Grupo Energia Bogota (GEB) ISO 55000 Corporate Transformation
Grupo Energia Bogota (GEB) is a public utility corporation with more than 125 years of history.
US$ 6 Million of cost/risk/performance benefits
Greater efficiency in total operating costs of the whole transmission business
Added value benefits of US$ 5 Million
Contract Objectives
With 11 subsidiaries and operations in generation, transmission and distribution of electricity in Latin America, plus the transport and distribution of natural gas in Colombia, Peru, Brazil and Guatemala, GEB is the second largest power transmission company in Colombia, with an 18.4% market share. Through an intensive growth programme, by 2025 they will have 4,077kms of transmission lines at 500kV, 230kV and 110kV and 51 electrical substations.
The project started in August 2019, following an Asset Management Maturity Assessment that scored the company at just 1.7 on the IAM Maturity scale. GEB’s executive teams decided to address the issues by introducing modern asset management concepts, practices and methodologies, based on the IAM guidelines, and an Asset Management System based on the ISO 55001 standard. Our consultants provided and adapted a structured approach to building the necessary transformational roadmap, addressing ‘quick win’ opportunities while establishing the necessary foundation stones of training, process changes and culture/behavioural adaptations
Activity Description
Top management chose a very successful combination of setting clear goals and expectations for the desired changes and maintaining close interest and support for their delivery.
Specific objectives were set to…
- Strengthen decision-making processes for asset interventions.
- Strengthen the styles and practices of collaborative working across functional and discipline boundaries.
- Operationalize the strategy and improve the ’line of sight’ so that all employees can better understand how their activities on a day-to-day basis contribute to the achievement of strategic goals and performance outcomes.
Establishing a dedicated multi-disciplined ‘core’ team, comprising a project manager and four respected discipline experts.
- Approving a framework for what asset management should entail (the ISO 55001 requirements for the management system)
- A 4-year Roadmap developed and maintained at a level where multiple parallel workstreams could be seen to converge on required outcomes.
- A robust and flexible decision-making process, based on the SALVO® Process and Decision Support Tools (DST) tools from The Woodhouse Partnership Ltd.
- An agile change management methodology that could apply across complex changes and retain the human-factors sensitivities. This was the ADKAR model from PROSCI®.
Alignment with a number of corporate stakeholder priorities:
- Implement and leverage best practices, complementary technologies and innovation in the transmission business.
- Allow the management of assets all stages of the life cycle (planning, design and construction, operation and maintenance and renew or disposal) to anticipate any possible regulatory requirements for ISO 55001 certification that the Energy and Gas Regulation Commission (CREG) might introduce.
Project outcomes & results
Despite the massive challenges, the annual reviews of the project’s progress encouraged the executive management to bring forward the formal audit of the new asset management capabilities. The 2021 progress assessment showed a score of 3.1 on the IAM scale, and earlier this year, Bureau Veritas was able to certify the organization’s conformance with all requirements of ISO 55001 – 1 year ahead of plan.
GEB’s successful introduction of asset management was delivered during a global pandemic, with associated rapid and massive shifts in working practices, safety concerns, and supply chain disruptions. Any yet, despite these challenges, they achieved the ISO 55001 certification milestone a year ahead of plan and delivered multi-million $$ validated business benefits.
- Significant savings (close to 40%) in capex budget needed for asset renewals. E.g., over US$ 6 Million of cost/risk/performance benefits were achieved from changes to asset investment timing decisions.
- Greater efficiency in total operating costs of the whole transmission business; 11.4% reduction compared to baseline.
- Improved total asset life cycle costs, e.g., providing the innovative basis for the executive decision to modernize the Paraiso 230kV substation, with ‘added value’ benefits of US$ 5 Million.
- Development of highly effective virtual and remote project delivery methods, accounting for more than 75% of activities throughout the duration of the project.
- Optimization of storage and inventory for equipment and materials needed in construction projects.
- The project has been approved now to be expanded to operations in Brazil and Guatemala.
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