8. Operation

8.1 Operational Planning and Control including Life Cycle Management

                    Operations is where the system either delivers or fails. The processes that run the assets — across the lifecycle — are planned, implemented and controlled so they actually deliver what Clauses 6 and 10 set out, and what the asset management plans commit to. In practice this means:
                

a Defining the criteria each process is held to — performance, safety, cost, compliance

b Controlling the processes against those criteria — not letting them drift into custom-and-practice

c Monitoring and acting on risks using the approach defined in 6.1.2

d Monitoring and pursuing opportunities using the approach defined in 6.1.3

e Managing risks, opportunities, costs and performance together — not in silos — so value is realised across the lifecycle, throughout the period the organisation is accountable for the asset

Evidence:
Records show what was planned and what actually got done — sufficient to give confidence the processes ran as intended. The depth of evidence scales with risk and criticality, not with audit anxiety.

Process Control Framework

Establishing Process Criteria

Performance Criteria

Asset availability targets
Reliability standards
Efficiency benchmarks
Quality specifications

Safety Criteria

Safety performance standards
Risk tolerance levels
Incident prevention measures
Emergency response protocols

Financial Criteria

Cost control limits
Budget constraints
Return on investment targets
Value optimization goals

Compliance Criteria

Regulatory requirements
Environmental standards
Industry best practices
Stakeholder expectations

Process Control Implementation

1. Process Design

Define process flows, inputs, outputs, and interfaces

2. Control Mechanisms

Establish monitoring, measurement, and control systems

3. Resource Allocation

Assign resources, responsibilities, and authorities

4. Performance Monitoring

Track process performance against established criteria

5. Continuous Improvement

Regular review and enhancement of process effectiveness

Process Control Principle: Effective process control ensures consistent achievement of asset management objectives while managing risks and optimizing value

Asset Lifecycle Management

Note 1: Life cycle processes can include the creation, acquisition, utilization, maintenance, improvement, renewal, and disposal of assets.

Note 2: Acquisition can be either purchase, lease or design, build, installation or commissioning or other asset based capability provisioning, such as public-private-partnership or build-own-operate.

Note 3: Disposal includes extinguishment of liability from owning, managing or operating the asset.

Note 4: Improvement can include re-purpose of assets as well as modification.

Note 5: Life cycle activities can include or be based on predictions of the asset state in any life cycle stage.

Asset Lifecycle Stages

Creation

Needs identification
Concept development
Feasibility studies
Business case development

Acquisition

Procurement planning
Design and build
Installation and commissioning
Acceptance and handover

Utilization

Operational management
Performance monitoring
Asset optimization
Capacity management

Maintenance

Preventive maintenance
Condition-based maintenance
Predictive maintenance
Emergency repairs

Improvement

Performance enhancement
Technology upgrades
Modifications and retrofits
Asset re-purposing

Renewal

Replacement planning
Technology refresh
Capacity expansion
Strategic repositioning

Disposal

End-of-life planning
Decommissioning
Asset disposal/sale
Liability management

Asset Acquisition Methods

Purchase

Direct ownership through purchase

Lease

Temporary rights through leasing arrangements

Design & Build

Custom development and construction

Public-Private Partnership

Collaborative development arrangements

Build-Own-Operate

Third-party development and operation

Installation & Commissioning

Implementation and startup services

Predictive Lifecycle Activities

Condition Forecasting: Predicting future asset condition based on current state
Performance Modeling: Forecasting performance degradation over time
Failure Prediction: Anticipating potential failure modes and timing
Lifecycle Costing: Predicting costs across all lifecycle stages
Value Optimization: Forecasting value delivery throughout lifecycle

Risk and Opportunity Management

Risk Monitoring and Treatment (6.1.2)

Risk Identification

Operational risk assessment
Technical failure analysis
External threat evaluation
Stakeholder impact assessment

Risk Analysis

Likelihood assessment
Impact evaluation
Risk rating and ranking
Interdependency analysis

Risk Treatment

Mitigation strategies
Control implementation
Risk transfer mechanisms
Contingency planning

Risk Monitoring

Continuous risk assessment
Early warning systems
Performance indicators
Regular risk reviews

Opportunity Monitoring and Implementation (6.1.3)

Opportunity Identification

Performance improvement potential
Technology advancement opportunities
Market development possibilities
Innovation and optimization

Opportunity Evaluation

Benefit assessment
Feasibility analysis
Resource requirements
Timeline considerations

Implementation Planning

Project development
Resource allocation
Timeline establishment
Success criteria definition

Implementation Monitoring

Progress tracking
Benefit realization
Performance measurement
Lessons learned capture

Integrated Risk and Opportunity Management

Balanced Perspective: Consider both risks and opportunities in decision-making
Dynamic Assessment: Regular review and update of risk and opportunity profiles
Portfolio View: Manage risks and opportunities across the asset portfolio
Stakeholder Integration: Consider stakeholder perspectives in risk and opportunity management
Performance Integration: Link risk and opportunity management to performance outcomes

Value Realization Across Asset Lifecycle

Value Management Requirement:
Ensuring that the opportunities, risks, costs, and performance are managed to realize value across the asset life cycle within the organization's period of responsibility.

Note 6: Where an organization's period of responsibility is shorter than the asset life cycle (or in case of service providers, the client's period of responsibility), it can be necessary to take the required state of the asset into account.

Value Realization Dimensions

Opportunities

Performance enhancement
Cost optimization
Innovation implementation
Service improvement

Risks

Performance degradation
Cost escalation
Safety incidents
Compliance failures

Costs

Capital expenditure
Operating expenses
Maintenance costs
End-of-life costs

Performance

Operational efficiency
Service delivery
Reliability and availability
Stakeholder satisfaction

Value Optimization Strategies

Lifecycle Optimization

Whole-of-life value maximization
Stage-specific value focus
Transition management
End-to-end optimization

Portfolio Optimization

Asset portfolio balancing
Resource allocation optimization
Synergy identification
Cross-asset learning

Stakeholder Value

Multi-stakeholder benefits
Value proposition alignment
Benefit sharing mechanisms
Stakeholder engagement

Adaptive Management

Flexible value strategies
Responsive decision-making
Learning and adaptation
Continuous improvement

Period of Responsibility Considerations

Asset State Management: Consider required asset condition at end of responsibility period
Handover Planning: Ensure smooth transition to next responsible party
Value Preservation: Maintain asset value for future users
Documentation: Comprehensive asset information transfer
Liability Management: Clear understanding of ongoing responsibilities

8.2 Control of Change

                    Planned changes are controlled — and unintended consequences of any change are reviewed afterwards. Where the review surfaces adverse effects, action is taken to contain them. Change control is bidirectional: ahead of the change, and behind it.
                

Change Control Framework

Planned Changes

Asset modifications and upgrades
Process improvements
Technology implementations
Organizational restructuring
Policy and procedure updates

Unintended Consequences

Performance impacts
Safety implications
Cost overruns
Schedule delays
Stakeholder disruption

Change Control Process

Change Request

Formal submission and documentation of proposed change

Impact Assessment

Evaluation of potential effects on assets, operations, and stakeholders

Risk Analysis

Assessment of risks and opportunities associated with the change

Authorization

Formal approval based on assessment results and business case

Implementation

Controlled execution of the change with monitoring and controls

Review

Post-implementation review of outcomes and lessons learned

Change Control Best Practices:

Comprehensive Assessment: Evaluate all potential impacts before implementation
Stakeholder Engagement: Involve relevant stakeholders in change planning
Risk Mitigation: Develop strategies to address identified risks
Monitoring Systems: Implement monitoring to detect unintended consequences
Rollback Plans: Prepare contingency plans for change reversal if needed
Documentation: Maintain comprehensive records of all changes

Adverse Effect Mitigation

Preventive Measures

Thorough impact assessment
Pilot testing and trials
Phased implementation
Training and preparation

Responsive Actions

Real-time monitoring
Rapid response protocols
Corrective action implementation
Stakeholder communication

Recovery Strategies

Rollback procedures
Alternative solutions
Damage containment
Lessons learned integration

8.3 Externally Provided Processes, Products, Technologies and Services

External Provider Control Requirements

Externally provided processes, technologies, products, services and activities that touch the asset management system are controlled — not assumed safe because they sit with a contractor. Risks and opportunities they bring are accounted for, and they are integrated into the system rather than running alongside it.

Types of External Provision

Processes

Asset maintenance services
Condition monitoring
Performance optimization
Risk assessment services

Technologies

Monitoring systems
Control technologies
Analysis software
Communication platforms

Products

Spare parts and components
Consumables and materials
Equipment and tools
Software applications

Services

Technical support
Consulting services
Training and development
Outsourced operations

Control Considerations

Risk Assessment: Evaluate risks associated with external provision
Opportunity Evaluation: Identify benefits and value creation potential
Quality Assurance: Ensure external provision meets required standards
Performance Monitoring: Track external provider performance
Integration Planning: Ensure seamless integration with internal systems

External Provider Management Process

For each external relationship, three things are pinned down up front:

a What is being provided — the scope, the boundaries, and the interfaces with the organisation's own processes and assets. Vague boundaries are where most contractor disputes start

b Who inside the organisation is accountable for the externally provided work — name, role, authority level

c How knowledge and information flow between the organisation and the provider — what gets shared, with whom, in what form, on what cadence

External Provider Management Framework

Scope Definition

Clear boundaries and interfaces
Service level agreements
Performance specifications
Deliverable definitions

Responsibility Assignment

Internal management roles
Provider oversight responsibilities
Escalation procedures
Decision-making authorities

Knowledge Sharing

Information exchange protocols
Knowledge transfer processes
Collaborative platforms
Learning and development

Interface Management

Technical Interfaces

System integration points
Data exchange protocols
Technology compatibility
Performance standards

Operational Interfaces

Process handoffs
Communication protocols
Coordination mechanisms
Emergency procedures

Commercial Interfaces

Contract management
Financial arrangements
Risk allocation
Performance incentives

Integration and Monitoring Requirements

What is provided externally is held to the same standard as what is run internally:

It satisfies the relevant Clause 7 (support) and Clause 8 (operations) requirements — competence, communication, documentation, control of change

It is monitored in line with Clause 9.1 — performance, conformance, risk

It is aligned with the SAMP and the asset management plans, not running to its own logic

Clause 7 & 8 Compliance Requirements

Support Requirements (Clause 7)

Adequate resources provision
Competence requirements
Awareness and communication
Documented information control
Data and knowledge management

Operation Requirements (Clause 8)

Operational planning and control
Lifecycle management
Change control processes
Risk and opportunity management
Value realization focus

Monitoring Framework (9.1)

Performance Monitoring

Key performance indicators
Service level metrics
Quality assessments
Customer satisfaction

Compliance Monitoring

Regulatory compliance
Standard adherence
Contract compliance
Safety performance

Risk Monitoring

Risk indicator tracking
Incident monitoring
Threat assessment
Mitigation effectiveness

SAMP and Plan Alignment (6.2)

Strategic Alignment

SAMP consistency
Strategic objective support
Value proposition alignment
Long-term vision support

Operational Alignment

Asset management plan integration
Process optimization
Resource coordination
Performance synchronization

Integration Principle: External providers must be fully integrated into the asset management system to ensure consistent performance and value delivery