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Strategic Asset Management Plan



The purpose of this SAMP is to document the translation of organizational objectives into asset management objectives, describe the Asset Management System (AMS) and its use to support achievement of asset management objectives, and identify strategic asset management initiatives that EESL will implement to develop the AMS. The AMS demonstrates that the assets are financially sustainable over the life of the assets.

This SAMP consists of the AM policy and portfolio for all the physical assets that are owned, operated or maintained by EESL through AMS. Within the AMS assets are managed in a strategic manner that relies on trained knowledgeable staff and communication with stakeholders to meet their expectations. This program focuses on three fundamental goals providing sustainable high-quality service to customers, optimizing asset value while minimizing life cycle costs, and managing risks to the delivery of established service levels. The establishment of asset management objectives should consider the requirements of relevant stakeholders and of other financial, technical, legal, regulatory, and organizational requirements.

In order to establish the AMS and to provide an implementation plan for the achievement of the asset management objectives, decision making bodies are established at EESL to assess the risk associated with day to day activities performed at plant, establish an Emergency Plan to mitigate hazardous condition, and to monitor performance through audits and inspection reports for continuous asset monitoring.

Plant Strategies

At EESL Site, several strategies are formulated to ensure smooth and reliable plant operations.Plant Maintenance –PM Module, which is SAP based, allows us to keep smart tracking of maintenance related activities.

A comprehensive PM plan is formulated through SAP PM Module covering all critical instruments and equipment. The plan is formulated after detailed plant equipment study after which plans for both critical and non-critical PMs are aligned through SAP.

Yearly outage plans are aligned to ensure major maintenance of CAPEX items. It also helps in performing critical PMs which are not possible in running plant. It is also carried out through SAP PM modules.Mechanical Integrity Audits are carried out through non-destructive testing –NDTs such as Endoscopy, Ultrasonic testing, Thermography etc.

Reliability studies are carried out for all major equipment in perspective of Failure Mode Equipment Analysis FMEAs. Interdepartmental consolidated reports are formed and reviewed against which major reliability project recommendations are generated along-with their planned time frame.

Asset Policy

EESL states that its asset management policy is a short statement that sets out the principles by which the organization intends to apply asset management to achieve its organizational objectives. EESL is committed to maximizing company return on investment in physical assets. To meet this commitment, EESL will:

  • Ensure compliance with all statutory requirements applying to physical assets and asset management.
  • Ensure that all Asset Management decisions and activities comply with EESL policies relating to Occupational, Health, Safety and Environment.
  • Ensure that Asset Management decisions and activities consider and balance the needs of all relevant stakeholders, both within and external to the organisation.
  • Ensure alignment between all organisational functions that impact on Asset Management including Projects/Engineering, Production, Maintenance and Supply.
  • Ensure that EESL assets are managed in accordance with recognized asset management techniques that consider the achievement of both short term and longer-term business objectives.
  • Formally assess both risk and economic outcomes when making decisions relating to the management of physical assets.
  • Ensure that asset purchase, replacement, refurbishment and disposal decisions are made based on an assessment of expected future customer demand, life cycle costs and risks.
  • Operate assets in a disciplined manner, and with precision.
  • Maintain assets in such a manner that they continue to meet operational requirements for the duration of their expected life.
  • Ensure that adequate resources are provided to permit the achievement of agreed Asset Management objectives
  • Continually improve Asset Management processes and performance.

Health and Safety Environment

Engro ensures safe operations of its power producing plant site in a manner that its employees, neighboring communities, plant equipment and environment are not endangered. This commitment requires a systematic identification of potential safety hazards and taking necessary precautions so that the risks from these hazards could be minimized. The Company strongly believes in its ‘Health Safety & Environment (HSE)’ philosophy and is committed to integrate an efficient and timely risk management system with its plant design, construction, maintenance and operation of facilities.HSE manual is documented and followed in Engro Energy Services Ltd. HSE manual contains total of 14 documents. It Contains the HSE Philosophy, HSE Management System, General Safety Guidelines and Procedures, Electrical Safety Management, Fire Prevention Plan, Personal Protective Equipment’s (PPEs) Procedures, Job Safety Analysis and Safety Guidelines for Contractors, Fall Protections, Portable Ladders, Tools, Scaffolding, Lifting Devices Cranes and Rigging. Engro has applied core HSE programs at site to assure safety of employees, neighbors, environment, and equipment.

Process Safety Management (PSM)

Process Safety Management is designed to manage the integrity of operating systems and processes handling hazardous substances by applying good design principles, engineering, and operating practices. PSM is essential for managing complex operations as well as simple operations involving hazardous materials. The elements of PSM focus on Technology, Facilities and Personnel. To improve safety, a deliberate safety policy must be established and applied daily by each member of the work force, whether Manager, Supervisor, or Contractor employee. Top management must establish the policy that will spell out the principles that are to govern all decisions regarding safety. The policy needs to be explained to workers in terms they can understand, taken down to the shop floor with examples of how the policy 4 applies in daily tasks.It is important that the policy be specific and is signed by the President, and that it is posted throughout the company facilities and readily available to all employees.

Occupational Health and Industrial Hygiene (OHIH)

Occupational Health and Industrial Hygiene is the science of keeping people safe and healthy at work and in their communities. In line with EESL HSE policies, OHIH management system documented in OHIH/Level-1 and OHIH/Level-2 procedures and is implemented accordingly. EESL places Health, Safety and Environment high on its list of priorities with policies designed to identify risk at the earliest possible stage and to take measures to reduce the chances of incidents.Food outlets are important areas in an industrial environment from where food borne illness may initiate. The maintenance of meticulous hygiene and standards, therefore,becomes extremely important for the prevention of discomfort and sustenance of good health. Catering hygiene inspections and audits are necessary tools in maintenance of hygienic food outlets. HSE Manager will nominate the audit team. Audit team will be led by a departmental head. Team will comprise of HSE supervisor along with one auditor from another department.

Electrical Safety Management

An effective electrical management system will reduce the risk of harm from electricity by ensuring that all key elements that give safety assurance are identified and addressed. Electrical safety management code is broken down to four aspects:

  • Managing policy aspects, including setting of policy, leadership, planning and design factors.
  • Managing procedure aspects, including the identification and control of risks, safe working practices, maintenance, documentation and performance monitoring.
  • Managing people aspects, including appointments, training, competence and communication.
  • Managing specific issues, including working on live systems, contractors, buried and overhead cables.
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Combustible dusts which are electrically non conductive include dusts produced in the handling and processing of grain and grain products, pulverized sugar and cocoa, drilled egg and milk powders, pulverized splices, starch and pastes, potato and meal from beans and seed, dried hay, and other organic materials which may produce combustible dusts when processed or handled. Dusts containing magnesium or aluminum are particularly hazardous and the use of extreme caution is necessary to avoid explosion.

Environmental Management System (EMS)

EMS refers to the management of environmental programs in a comprehensive, systematic, planned and documented manner. It includes the organizational structure, planning and resources for developing, implementing and maintaining policy for environmental protection.The basic purpose of an EMS is to provide Engro Energy with a structured process and a framework with which to achieve and systematically control the level of environmental performance,it sets for itself.From a practical point of view, the environment that concerns a company would be the surroundings in which an organization’s activities, products and service have a significant environmental impact and over which the organization can exercise some reasonable control or influence. This influence and control can extend from local, through regional and even to global conditions, depending on the nature of the organization.The actual level of performance depends on economic, regulatory, and other circumstances.

On-site handling refers to the activities associated with the handling of solid waste until they are placed in the containers used for their storage before collection. The solid wastes that accumulate in the offices or work locations are usually collected in drums. Once filled, these are removed by means of service carriage to the storage location or other processing equipment such as incinerator.

Plant and Equipment Maintenance

Maintenance is keeping the plant and equipment in good condition for operation. It is the action taken to prevent plant and equipment from failing and to repair normal degradation experienced with the operation and to keep it fit for operation.Adequate maintenance of plant and equipment is necessary to ensure that the plant and equipment is working reliably and effectively. An effective maintenance programme is established that results into cost benefits because of better productivity and efficiency.Maintenance activity consists of taking the decisions and actions regarding the upkeep of the plant and equipment. These are inclusive, but not limited to the following.

  • Actions focused on maintaining and analysing the data related to plant and equipment health.
  • Planning of adequate and necessary inventory of spare parts, lubricants, fast moving consumables and storage items. This includes standardization of spares and consumables.
  • Actions focused on scheduling, procedures, system control and optimization.
  • Performance of routine, preventive, predictive, scheduled and unscheduled actions aimed at preventing equipment failure as well as achieving the goal of increasing efficiency, reliability and safety.

HR Management and Competencies Development

It is the policy of Engro to attract, include, develop, retain and motivate higher calibre talent who are required, capable and willing to contribute their best towards accomplishment of company objectives. To achieve this Engro will pursue high standards of Human Resource Management practices encompassing following principles.

  • Provide equal opportunity to all job applicants through clearly defined and consistently applied induction standards.
  • Create a work environment where every employee has an equal opportunity to develop his skills and talents.
  • Provide opportunities to employees to acquire knowledge and develop technical and managerial skills through classroom training and on the job development that meets employee and Company needs.
  • Clear linkage of rewards policies with performance and potential.
  • Provide an environment free from all forms of discrimination and harassment at workplace.
  • Clearly defined system for career progression based on merit and potential.
  • Policies aimed at creating flexible and conductive working arrangements for all.

IT and Knowledge Management

All logical access to IT Services must be formally authorized, documented and the documentation retained.

This policy applies to all employees directly or indirectly work for, supply to or provide services to Engro when utilizing Engro’s Information Systems services & resources.

IT Policy and Knowledge Management is documented in detail that majorly encompasses on following points.

  • Access management ensures that information and information systems are available for authorized use and protected from unauthorized use.
  • To establish requirements to be met by all computers connected to the Engro network, to ensure effective detection and prevention against malware.
  • To achieve and maintain appropriate protection of organizational assets. To ensure that information receives an appropriate level of protection.
  • To ensure the integrity and availability of information. All Information Assets shall be backed up and tested in accordance with this policy.
  • To prevent loss, damage, theft, compromise of information and IT assets and interruption to the activities within Data Centre.
  • To determine creation, maintenance, testing and implementation of IT operations needed to support all essential and critical business functions.


Andrew Samaan (author) from egypt on November 24, 2020:

thanks for you

VIEWER on November 24, 2020:

Important article, GREAT

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