Approach to Developing the Asset Management Maturity Model for JSC “Russian Grids”

The MAIN JOURNAL for POWER GRID SPECIALISTS in RUSSIA

6

August 25–29, France, Paris

Asset Management

Keywords: 

asset management, asset management 

maturity model, ef

fi

 ciency management, power supply 

reliability.

Abstract:

At present, development and integration of uniform 

principles and mechanisms of physical asset management 

(PAM) in all subsidiaries of JSC “Russian Grids” is 

one of priority directions of the company’s activities. 

Assessment of PAM organizational maturity level is a 

tool which enables estimating the maturity degree of PAM 

components in Subsidiaries. At JSC “Russian Grids” 

the given tool was suggested as an auxiliary method of 

shaping PAM development plans of subsidiaries based 

on common logic. The approach for developing the asset 

management maturity model is based on quality analysis 

of conformance of Subsidiaries’ PAM to the upper-level 

PAM model of JSC “Russian Grids”. PAM maturity 

organizational level assessment model was developed 

with reference to the international standard PAS 55 and 

materials of international companies accredited for 

PAS 55-based quali

fi

 cation, with account for the nature 

of currently implemented projects in transmission and 

distribution companies. The results of the conducted 

work were used for choosing main directions of PAM 

development at JSC “Russian Grids” and its subsidiaries.

COMPANY INTRODUCTION AND PROBLEMS 

OF PAM DEVELOPMENT IN 

AN ELECTRIC GRID SECTOR

The problem of development of common principles 

and rules for asset management for the electric grid 

companies arose at the start of power industry reformation 

process. Inhomogeneity and conservatism of methods 

cause complications in assessing results of separate 

companies’ activities and in decision-making in cases of 

lower ef

fi

 ciency rates. Besides, the problems of improving 

ef

fi

 ciency came to relate to rising demands of consumers, 

shareholders, investors, other companies in the industry, 

regulatory authorities and the state, which required 

transition from management of separate processes within 

Approach to Developing the Physical 

Asset Management Maturity Model 

for JSC “Russian Grids”

Evgenia KORNIENKO (

Евгения

КОРНИЕНКО

),

 JSC “Russian Grids”

Irina VOLKOVA (

Ирина

ВОЛКОВА

),

 National Research University

1

  Main electricity grids of JSC “FGC UES” -Uni

fi

 ed National 

Energy Grid (UNEG), distribution grids of JSC “IDGC 
Holding” -distribution grid companies (DGC).

an organization to system management, formation not only 

of balance performance and ef

fi

 ciency within companies 

and their af

fi

 liates, but also of the balance of reliability, 

risks and costs at the level of all stakeholders.

JSC “Russian Grids” was established in 2012 within 

the framework of global structural reforms in power 

industry. It united main electricity grids of JSC “FGC 

UES” and distribution grids of JSC “IDGC Holding”

1

 [1].

The aim of consolidation of the companies was to 

form a uniform body in the power grid sector for solving 

tasks of improving operating and investment ef

fi

 ciency, 

increasing quality and reliability of services on power 

transmission and distribution, availability and security of 

the grid infrastructure, as well as solving general tasks of 

optimizing mechanisms of industry regulation within the 

framework of activities under jurisdiction. 

In accordance with the Order of the Government of RF 

of April 3, 2013 

№

511-

р

 “On approval of the Strategy of 

Russian power grid sector development”: 

•  Main priority activities of main power grid sector is 

maintaining and developing grid infrastructure (lines 

and transformers), which enables power generation by 

power plants and power transmission to distribution 

grids, as well as providing state’s energy security;

•  The aim of operation of the distribution grid sector 

is long-term provision of reliable, high-quality and 

affordable power supply of consumers in the whole 

territory of the respective region at the stage of electric 

power distribution by organizing infrastructure of 

maximum ef

fi

 ciency [2].

JSC “Russian Grids” Group of companies operates 

2.2 million km of power transmission lines, 473 thousand 

of substations with transformer capacity of more than 

более

 748 GW. In 2013 the net electric power supply to 

consumers amounted to 706 billion kWh. The personnel 

number is 222 thousand people.

7

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JSC “Russian Grids” is also one of the most prominent 

infrastructure companies in Russia, being under state 

control and acting as its agent for Russian power grid 

sector management.

Formation of a uniform transparent system of 

managing assets of JSC “Russian Grids” and its 

subsidiaries is at present a way to solve the set tasks 

of meeting reliability standards and improving tariff-

making transparency.

PAM is systematic, regular and coordinated activity 

on optimal management of technical condition, 

reliability, costs, risks and performance of equipment 

(assets) throughout its life cycle with the aim of 

achieving strategic goals of JSC “Russian Grids” Group 

of companies.

The asset management system is interconnected 

and jointly used process diagrams, indicators of their 

ef

fi

 ciency, rules, methods, algorithms, regulatory and 

reference information, information systems and databases 

for exerting systematic impact on assets, reliability of 

their use, risks and costs throughout the life cycle with 

account for the Company’s strategic aims [3, 4].

In 2005—2010 a number of asset management 

concepts were developed in companies of the distribution 

grid sector of JSC “IDGC Holding” and JSC “FGC UES”, 

and some of them are partially implemented now.

Main prerequisites for development of a uniform 

asset management system at JSC “Russian Grids” are the 

following:

•  need in meeting requirements of RAB-regulation as 

regards conformance to standards    of power supply 

reliability with simultaneous reduction of costs for 

modernizing and renovating power grids and restricting 

growth rates of end consumer electricity tariffs;

•  impossibility of using the existing asset management 

principles — impact with the standard periodicity rates 

due to limited resources. Thus, it causes the need in 

choosing priorities of activities;

•  need in assessment, analysis, regular monitoring 

of operating performance and optimal distribution 

of 

fi

 nancial resources for improving quality of 

management-related decision-making along the whole 

organization vertical. 

JSC “Russian Grids” and its Subsidiaries face the 

following external and internal factors that make it 

impossible to simultaneously set identical target goals for 

all subsidiaries within a short time period: 

•  imperfection of the regulatory base in the 

fi

 eld 

of equipment operation, repairs and replacement. 

Absence of fully implementable methods and rules 

for assessing equipment condition, risks, criticality 

and consequences of equipment failures, as well as 

methods of equipment repair and replacement planning 

with regard to the enumerated characteristics;

•  inhomogeneity of asset management methods used in 

different af

fi

 liates of DGC and UNEG;

•  need in developing a uniform system of goal-setting, 

organization, ful

fi

 llment and assessment of PAM 

ef

fi

 ciency in new conditions;

•  incompleteness of the balanced scorecard system of 

PAM ef

fi

 ciency, use of plan/actual analysis based on 

separate cost and physical parameters;

• insuf

fi

 cient level of asset and consumer information 

adequacy, which makes meaningful strategic 

and operational planning, monitoring and asset 

management ef

fi

 ciency assessment impossible;

•  inadequate development of the uniform information 

exchange model, which would encompass all 

company’s management levels.

All the above mentioned features and complications 

represent relevant issues that, according to the international 

practices, can be solved within the framework of a uniform 

PAM model of grid companies. 

The upper-level PAM model was suggested at the initial 

stage of formation and re

fi

 ning of the uniform PAM model 

of JSC “Russian Gris”, conforming to the requirements of 

the international standard PAS 55.

While forming plans of prospective development and 

changing PAM approaches, it is necessary to take into 

account presence of strategic aims of main and distribution 

grid companies, as well as levels and special features of 

technical and economic conditions of all Subsidiaries, 

organizational peculiarities and the level of understanding 

of the need in changes within the company by its workers.

With the aim of setting realistic tasks in each company, 

further gradual development in PAM uniform logic and 

coherent transition to asset life cycle management, the 

stage of planning integration of results of PAM-related 

activities carried out by 15 companies is preceded by the 

stage of development of PAM maturity model of JSC 

“Russian Grids” and estimation of maturity level of each 

Subsidiary.

DEVELOPING THE ASSET MANAGEMENT 

MATURITY MODEL FOR JSC 

“RUSSIAN GRIDS”

There exists quite a number of approaches to 

assessment the maturity level of the management, 

information system and software (business processes, 

quality management, people capability maturity model, 

knowledge management, system engineering, software 

acquisition or integration capability maturity models 

etc.) [6—10]. Basic principles of the PAM maturity 

assessment for infrastructural companies are described in 

the international standard PAS 55 [11].

The PAS 55 conventional model suggests determining 

of the company’s PAM system conformance to one of 

5 maturity levels (Learning, Applying, Embedding, 

Optimizing and planning, Beyond PAS 55) and making 

conclusions about gaps and unconformities based on 28 

PAS 55 criteria. The assessment is conducted on the basis 

of internal audit of business processes, regulatory and 

standard documentation, PAM information system and 

surveys of key workers.

Taking into account that quite recently Russian 

companies have started thinking about transformation of 

approaches to PAM and integrating separate components 

described in PAS 55, and the fact that the power grid 

8

August 25–29, France, Paris

Asset Management

sector structure underwent signi

fi

 cant  organizational 

changes during the industry reformation period, and, 

as a consequence, the vision of the sequence of steps in 

transition to risk-, performance- and cost-based asset 

management changed, at present it is important for JSC 

“Russian Grids” not just to compare the level of PAM 

conformance to international requirements, but to assess 

and compare the PAM development levels in Subsidiaries 

to 

fi

 nd the best way of PAM development at JSC “Russian 

Grids” and its subsidiaries.

With this aim, an approach to determine the 

organizational PAM maturity level in subsidiaries of JSC 

“Russian Grids” based on upper-level PAM model was 

suggested. 

Figure 1 shows the process of use of PAM maturity 

model at JSC “Russian Grids”. Figure 2 demonstrates the 

PAM upper-level model at JSC “Russian Grids” [3, 4, 

5, 12].

 Materials of PAS 55, of international companies 

accredited for PAS55 quali

fi

 cation [13] and internal 

sources of data about the results of integration of 

current PAM projects in RGC and UNEG

2

 were used to 

develop a PAM maturity model for JSC “Russian Grids” 

(Fig. 3), which is described below. A questionnaire 

was made based on the description data, and a survey 

of experts of JSC “Russian Grids”, its subsidiaries 

and af

fi

 liates was conducted. Analysis of quality 

characteristics of PAM upper-level model components 

(Fig. 1) shows conformance of the existing PAM model 

in a Subsidiary to PAM maturity level of JSC “Russian 

Grids” with account for companies’ peculiarities and 

special implementation features of certain projects.

Experts, accountable for integration of the asset 

management system in Subsidiaries, are assessed by each 

questionnaire item according to 100-point scale. The 

fi

 nal 

Fig. 1. Process of use of PAM maturity model at JSC “Russian Grids”

2

  Projects now implemented in DGC: a project of 2011—2013 

on integration of a comprehensive asset management system 
[4], a project on development of a geoinformational system 
of distributed  resource management, integration of a system 
for recording and analysis of technological disturbance 
investigation results, etc. Projects now implemented 
in UN

Е

G: integration and development of a system of 

equipment maintenance and repair management, creation of 
a regulatory budget system, etc.

Formation of 

an upper-level 

PAM model for 

JSC “Russian 

Grids”

Development 

PAM Maturity 

Model (maturity 

matrix and 

questionnaire)

Assess and analyze 

business unit PAM 

model. Subsidiary 

and upper-level 

PAM model 

compliance

Formation of the 

Subsidiaries PAM 

development. 

Detailing the 

upper-level PAM 

model for JSC 

“Russian Grids”

PAM plans 

implementation 

and realization

indicator of maturity organizational level is calculated as 

the average value of answers to twenty questions.

Figure 3 can be used to follow the evolution of PAM 

model to be integrated in JSC “Russian Grids”, while the 

results of expert surveys and 

fi

 nal assessment of maturity 

organizational level can be used to estimate the actual 

PAM condition in DGC and UNEG. 

PAM maturity organizational level assessment 

model can be used to describe the best practices and 

targets for JSC “Russian Grids” group of companies, 

to describe the sequence of changing PAM components 

with the aim of stable development and benchmarking 

of Subsidiaries.

Description of maturity model for PAM of JSC 

“Russian Grids” (Fig. 1, 2):

Section1 includes a survey to understand the general 

requirements for asset management system, approved by 

common documents for all utility companies at a certain 

level of development. This section contains 6 general 

questions.

Section 2 de

fi

 nes the requirements for PAM Policy and 

Strategy. The section contains 5 positions corresponding 

to each issue.

Position 2.1 re

fl

 ects the need to develop and implement 

uniform policy for PAM in all Subsidiaries. 

Position 2.2 explains PAM Strategy coordination 

with power grid Policy and Strategy and requirements of 

external stakeholders, as well as determines the strategy 

effects on equipment, which adheres the Company to a 

certain level of development and an impact strategy that 

actually realized.

Position 2.3 shows, whether life cycle of assets are 

considered in the planning of network development?

Position 2.4 de

fi

 nes the necessity of existence in 

Subsidiaries and “Russian Grids” PAM development plan 

conditioned by the level of maturity of PAM.

Position 2.5 de

fi

 nes operational and investment 

methodology at a given level of maturity of PAM.

Section 3 de

fi

 nes the requirements for processes and 

asset management methodologies. The section contains 5 

questions.

Position 3.1 reveals features performing maintenance 

and repair (MR) processes.

Position 3.2 reveals features executing retro

fi

 tting 

and upgrading processes, new construction and 

expansion of existing facilities (renovation and new 

building process).

9

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Position 3.3 re

fl

 ects technical condition assessment 

methods, asset performance, power supply reliability and 

the costs.

Position 3.4 explains how the company assesses the 

effectiveness of asset management, whether effectiveness 

of subsidiaries and af

fi

 liates are compared to identify best 

practices in implementation?

Position 3.5 shows whether the results of planning 

and execution of production programs in prior periods 

are taken into account to justify the cost in the formation 

of tariffs in accordance with the opportunities that the 

company is developing at a certain level of PAM maturity 

risk assessment and prediction of reliability and cost?

Section 4 de

fi

 nes the requirements for resource 

management (PAM enablers). The section contains 4 

questions.

Position 4.1 generates for each PAM maturity level 

characteristic properties of databases on equipment, 

consumers, and 

fi

 nancial and economic activities of 

Subsidiaries and “Russian Grids”?

Fig. 3. –— Physical asset management maturity model for JSC “Russian Grids” [11]

The elements required 

by PAS 55 are not in 

place. The organiza-

tion is in the process 

of developing an un-

derstanding of PAS 

55 and an upper-level 

PAM model.

The organization has a 

basis understanding of 

the PAS 55 requirements 

and develops an upper-

level PAM model. 

It is in the process 

of deciding how the 

elements higher-level 

PAM model will be 

applied and starmed to 

apply them

The organization has 

a good understanding 

of the upper-level 

PAM model elements 

arrangement. It has 

decided how to apply 

them and how they will 

work in progression of 

implementation.

All elements of the 

upper-level PAM 

model are in place 

are being applied 

and are integrated.

Using processes and 
approaches that go be-
yond PAS 55. Pushing 
the boundaries of PAM 
development. The or-
ganization needs to 
create new concepts 
and ideas related with 
the Smart Grid concept 
implementation.

Fig. 2. Asset management upper-level model at JSC “Russian Grids”

Section 2

PAM Policy and Strategy

Section 1 – General Requirements

2.1. PAM Policy

2.2. PAM Strategy

2.3. Electric 

grid 

development 

plan

2.4. PAM 

development 

plan

Operational – 

maintenance 

and repair 

plan

Investment 

plan

2.5. Operational and investment plan

Existing assets

New assets

3.1. 

Maintenance 

and repair 

process

3.2. Renovation 

and new 

building process

3.3. Estimation of the assets’ 

conditions, performance, 

reliability, risks and lifecycle costs

3.4. Audit process, Ef

fi

 ciency 

estimation process, Benchmarking

3.5. Tariff explanation process, 

Finance strategy planning

Section 3 – PAM Processes 

and Methodology

4.2. IT infrastructure and 

technological solutions management

4.3. Organizational support and 

human resource management

4.4. Management of changes and 

continuous improvement

4.1. Data base management

Section 4 – Supplementary 

PAM tools – PAM Enablers

Section 1 

General 

Requirements

Section 3 

PAM Processes 

and Methodology

Section 4 

Supplementary 

PAM tools – 

PAM Enablers

Section 2 

PAM Policy and 

Strategy

10

August 25–29, France, Paris

Asset Management

Position 4.2 re

fl

 ects characteristic properties of the IT 

infrastructure of Subsidiaries and “Russian Grids”?

Position 4.3 describes the process of organizational 

support and personnel management within the Asset 

Management.

Position 4.4 provides a de

fi

 nition of the change 

management process and continuous improvement at 

different levels of maturity of the PAM.

LEVEL 0 (Learning):

According to the PAM maturity model at the level 

corresponding to the initial phase of learning:

- common PAM Policy as a high-level document is 

missing while companies begin to realize the need 

for the development and implementation of common 

approaches;

•  impacts on the assets are made at standard periodicity 

and accidents, mainly considering periodicity. 

Suf

fi

 cient funds for maintenance and renovation 

of the network determines the absence of the need 

to introduce new approaches to asset management 

regarding technical condition;

•  grid development plans are formed without a long-

term asset management Strategy;

•  asset management system development plan is missing;

•  development of operational and investment plans 

is taking into account the periodicity of the works; 

consolidated feasibility planning operating and 

costs investments (upgrade, new construction and 

expansion of existing facilities) is not provided, 

decision-making level at grid facilities (operational, 

functional, short-term planning) is carried out at sites, 

integrated plans are agreed in the branches and in 

Subsidiaries;

•  concepts of maintenance and repairs (overhaul, medium, 

current) are 

fi

 xed in standard technical documents, but 

the actual amount of work on each type of operational 

and maintenance activities are not allocated, which 

leads to dif

fi

 culties in the implementation planning of 

the facilities to the necessary extent;

• retro

fi

 tting and upgrading, new construction and 

expansion of existing facilities are not included in 

uniform asset management package;

•  structural assessment is carried out by experts, risk 

assessment is not carried out or carried out by experts 

at sites, there is no opportunity to forecast technical 

condition, risk, reliability and cost;

•  PAM effectiveness is performed in terms of plans 

implementation — plan-to-fact analysis in physical 

and 

fi

 nancial terms, there is disunity and heterogeneity 

of the KPI: no PAM balanced scorecard , there are no 

uniform methods for calculating “Russian Grids” and 

Subsidiaries key performance indicators; 

• 

fi

 nancial planning is based on extrapolation of data 

from previous periods;

•  branches and companies databases are scattered, 

overlap, there are no common regulatory information 

directories, information is incomplete and inadequate, 

historical data at facilities is maintained in volumes 

necessary only for the operation;

•  data acquisition is on paper or in various IT systems 

not integrated with each other, data processing is 

automated partially, facilities are incompletely and 

insuf

fi

 ciently equipped with technical means for data 

transmission;

•  availability of methodologies and regulations for 

individual processes, documentation independently 

developed by companies, there are no uniform 

methodology, the actual execution of regulations is not 

complete;

•  lack of staff with simultaneous head cutting and the 

absence of training, the staff is not intended to change 

the logic of PAM, comprehensive work on training 

and staff development in asset management is not 

conducted.

LEVEL 1 (Applying):

At this level of maturity — the phase of application 

of international approaches to development and 

implementation of the PAM target model:

•  uniform asset management Policy is in the process of 

development, it is assumed that corporate requirements 

to asset management de

fi

 ned by certain documents in 

force at “Russian Grids” level are not worked enough, 

companies and their branches could have possible 

independent interpretations;

•  companies are aware of the need to develop uniform 

high-level documents, the impact on the equipment 

is actually held by standard rate and frequency of 

accidents, mostly - upon an accident;

•  grid development plan is made excluding long-

term asset management Strategy but there is an 

understanding of the need to consider when planning 

the cost of risks and assets lifecycle;

•  asset management development plan is in the initial 

stage of development or is only valid at subsidiary level, 

but is not consistent with “Russian Grids” plan, does 

not cover all required PAM directions, responsibility, 

authority are not clearly assigned, evaluation of results 

is carried out at the level of company and “Russian 

Grids” formally and irregularly because the need in 

systematic understanding to work in this direction is 

still emerging;

•  plan for development and investment activity is 

conducted taking into account the periodicity of the 

works; asset management package includes MRO 

process, Upgrade and new construction are not 

included; consolidated technical and economic MR 

and investment planning is not available; planning is 

conducted at sites, the branches have the possibility to 

monitor plan implementation, the asset management 

balanced scorecard is in its initial stage of development 

it does not embrace all the required asset management 

directions in a common package, companies have their 

own methods for calculation of individual indicators;

•  concepts of MR are 

fi

 xed in standard technical 

documents, but the actual amount of work on each 

type of operational activities are not allocated, which 

leads to dif

fi

 culties in the implementation planning 

of the facilities to the necessary extent; companies 

11

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independently form their own master-production 

scheduling; 

•  structural assessment is carried out by experts, risk 

assessment is not carried out or carried out by experts 

at sites, possibility to forecast technical condition, risk, 

reliability and cost are at initial stage of elaboration is 

not available;

•  PAM effectiveness estimation is based on plan-to-

fact analysis    of operational and investment volumes 

and cost, performance evaluation is carried out by 

individual processes not organized in a common 

asset management package, there are dif

fi

 culties  in 

establishing a system of benchmarking for PAM in 

branches due to the fact that building a balanced 

scorecard of asset management is absent or is in the 

stage of development;

• 

fi

 nancial planning is based on extrapolation of data 

from previous periods;

•  databases of Subsidiaries are not structured properly; 

they are formed locally for individual projects and 

overlap; handbooks of the common reference data are 

composed by physical characteristics of the equipment, 

fi

 nancial and economical activities and budgeting 

of grid companies, customer data; the data integrity 

level is low, data management processes are under 

formation, contents of data 

fl

 ows is being précised;

•  data acquisition is carried out in different non-integrated 

IT-systems, many processes are not automated (middle 

automation level), no target model of Subsidiary IT-

infrastructure development is available or it is under 

elaboration, de

fi

 nition of access rights and formation 

of data 

fl

 ow maps are being worked out;

• 

Subsidiaries develop individually elaborated 

documents, there is no common methodology for 

different work

fl

 ows is available in JSC “Russian Grids” 

for its Subsidiaries, partial — in a Subsidiary for its 

branches; regulatory document statements are executed 

partially; the organizational structure of the company 

and the personnel involved into the asset management 

process — special asset management departments 

monitor implementation of asset management 

components; the personnel training and competence — 

irregular; the personnel understands the need to change 

existing work

fl

 ows, targets and objectives of PAM are 

explained to the whole personnel;

•  targets of continuous improvement and changes are 

de

fi

 ned; however, correlation between the overall 

corporative Strategy and the PAM strategy is not 

properly de

fi

 ned. 

LEVEL 2 (Embedding):

At the maturity level “Embedding” of the target 

PAM model:

• JSC “Russian Grids” has to elaborate and to approve the 

common PAM Policy; basic correlations between the 

strategy, the strategic targets of JSC “Russian Grids” 

and Subsidiaries with regard to PAM are documented; 

PAM objectives and development plans may correlate 

with other policies of the company; 

•  the Strategy contains correlations of PAM short-

term and long-term targets and objectives with assets 

lifecycle components; asset management is based 

on time and risks (with consideration of the assets 

condition and    performance);

• they elaborate approaches to planning of grid 

development with consideration of 

fi

 nancing resources 

and risks;

•  PAM development plans in Subsidiaries are elaborated 

and approved in terms of uni

fi

 rm PAM approach, the 

people responsible for plan execution on Subsidiaries 

and branches are assigned; however, responsibilities 

and authorities for individual works are not properly 

de

fi

 ned; assessment of plan execution is performed 

regularly in Subsidiaries and “Russian Grids”; 

•  PAM includes MR, retro

fi

 tting and upgrading; there is 

a possibility of long-term planning of total operational 

and investment costs; new construction and existing 

capacity enhancement work

fl

 ows are now being 

worked out;

•  PAM is treated as a tool of long-term and short-term 

planning, production program planning is carried out in 

branches; Subsidiaries and “Russian Grids” supervise 

this process.    The key performance indication system 

is properly de

fi

 ned at all management levels;

•  PAM methodologies and principles enable to estimate 

the scope and the cost of work execution for individual 

equipment, complex sites, grid sections within the 

controlled object, transfer to calendar-scope planning 

based on common principles;

•  company use expert-analytical procedures for the 

technical condition estimation; such procedures with 

regard to risks, consequences and critical failures are 

being elaborated and tested; no forecasting procedures 

for technical condition, risks, reliability and costs are 

available or they are being worked out;

•  common reference data system is being established 

that includes data on the equipment, customers, 

fi

 nancial and economic activities; data integrity level 

is middle; though the databases are suf

fi

 cient  for 

required analytical calculations, they are continuously 

reviewed, information management processes are 

re

fi

 ned, archive data required for forecast purposes are 

maintained;

•  data acquisition and processing are carried out in 

different IT-systems, the target IT-infrastructure 

model is being reviewed and implemented; it enables 

integration (automation level — suf

fi

 ciently  high), 

de

fi

 nition of data access rights and data 

fl

 ow  map 

formation at the initial stage of elaboration; 

• common PAM principles, methodology and 

procedures are approved for all companies (except for 

low level processes); actual execution of regulatory 

document statements — partial; characteristics 

of the organizational structure and the personnel 

involved into asset management processes — 

special asset management departments that do not 

combine production program execution and planning/

monitoring functions are available; regular training 

of the personnel; PAM change logics is accepted; 

12

August 25–29, France, Paris

Asset Management

suf

fi

 ciently high level of understanding PAM targets, 

objectives and methods; 

•  targets of continuous improvement and changing are 

correlated with Subsidiary’ strategy and PAM targets at 

all management levels; based on such correlation they 

carry out a detailed review of requirements to PAM.

LEVEL 3 (Optimizing and Integrating):

At the third maturity level: 

•   PAM requirements are speci

fi

 ed in detail in the 

Common Policy and applicable documents related 

to activities of JSC “Russian Grids” branches and 

Subsidiaries; qualitative and quantitative correlations 

between low level and higher level documents are 

de

fi

 ned properly; PAM Policy along with other policies 

are updated and reviewed regularly;

•  documents that de

fi

 ne short-term and long-term PAM 

targets and objectives are applicable; asset management 

is carried out with consideration of the risks during the 

whole asset life cycle;

•  principles of the grid development process and the 

grid accessibility are documented and applicable with 

consideration of the asset life cycle cost;

•  PAM development plans are elaborated, approved 

and executed within the scope of a complex 

approach to PAM; they are continuously updated 

with consideration of the results obtained at 

previous maturity levels and correlated with key 

parallel activities (development of situational and 

operational control processes, grid accessibility and 

connection process, etc retro

fi

 tting and upgrading, 

new construction and existing capacity enhancement 

work

fl

 ows are included into the complex asset 

management; procedures of investment project 

portfolio formation are approved and applicable); 

•  planning of operational and investment costs is 

provided with consideration of risks during the 

whole life cycle of the equipment; PAM is treated as 

a tool of long-term and short-term planning as well 

as quick decision-making; planning is carried out in 

Subsidiaries; estimation of the scope and the cost of 

work execution is carried out for individual equipment, 

complex sites, grid sections within the controlled 

object with consideration of the technical conditions, 

risks and the costs of asset life cycle;

•  expert-analytical procedures and diagnosis are used to 

estimate the technical condition and risks; forecasting 

procedures for technical condition, risks, reliability 

and costs are available;

• PAM balanced scorecard that correlates basic 

production and 

fi

 nancial  work

fl

 ows is elaborated 

and implemented; benchmarking system that enables 

comparison of Subsidiaries and its branches by PAM 

ef

fi

 ciency is implemented; 

•  long-term (5—10 years) 

fi

 nancial planning is carried 

out with consideration of data on grid development, 

risks and the cost of grid site life cycles; plans are 

précised annually; 

•  common reference data system is applicable in JSC 

“Russian Grids” and Subsidiaries that includes data 

on the equipment, customers, 

fi

 nancial and economic 

activities; data integrity level is high; the reference 

data is continuously updated, information management 

work

fl

 ow is properly de

fi

 ned at all management levels, 

archive data required for forecast purposes are acquired 

and available;

•  target IT-infrastructure model is being implemented; 

it de

fi

 nes the position of PAM systems, enables 

integration of IT-systems and platforms, de

fi

 nes data 

access rights and data 

fl

 ow map formation; automation 

level - high, level of equipment provision — suf

fi

 cient 

but not excessive;

•  uniform PAM principles are applicable in all companies 

of “Russian Grids”, common methodological and 

regulatory documents cover key processes (except 

the low level); actual execution of regulatory 

document statements — suf

fi

 ciently  full;  There 

are special asset management departments that do 

not combine production program execution and 

planning/monitoring functions are available; regular 

improvement of quali

fi

cation, consultations and 

technical support are available; specialists have both 

technical and economical skills, understand well PAM 

targets and objectives; 

•  targets of continuous improvement are de

fi

 ned  and 

correlated with PAM targets, continuous change and 

supplement of PAM requirements at all management 

levels is being carried out.

LEVEL 4 (Beyond PAS 55):

At the development level not covered by PAS 55 

PAM system changes are provided by Smart Grid 

concept: 

•  PAM Strategy is based on life cycle management 

and combination of new approaches (including 

consideration of Smart Grid technologies, active 

consumer behavior, market price signals, etc.);

•  grid development plan and grid connection processes 

principles are documented and applicable with 

consideration of the asset life cycle cost, integration 

of the distributed generation into the network, demand 

response, active consumer behavior, etc.;

•  PAM development plans are regularly reviewed 

with consideration of the results obtained, future-

proof trends of grid infrastructure development are 

considered and correlated with parallel key processes, 

online monitoring and estimation of results are 

supported;

• overall technical and economical planning of 

operational costs and investments into the 

fi

 xed capital 

is provided with consideration of risks during the 

whole life cycle of the equipment, change of consumer 

behavior and forecasts of power transmission costs; 

a well-balanced key performance indication system 

enables proper distribution of responsibilities at all 

management levels;

•  component-wise scope and MR cost planning is 

possible for the whole life cycle;

• retro

fi

 tting and upgrading, new construction and 

existing capacity enhancement, operational and 

13

[email protected],   www.eepr.ru

situational control processes are included into the 

uniform PAM;

•   technical condition and risk estimation can be 

carried out in real time by using analytical methods, 

possible forecasting of risks, reliability and costs with 

consideration of active consumer behavior, grid self-

healing and self-supervision capabilities,    market 

signals, etc.; asset management balanced scorecards 

and benchmarking are implemented; PAM ef

fi

 ciency 

assessment model helps the company to respond to 

changes of the environmental conditions to improve 

the decision-making ef

fi

 ciency; 

• long-term 

fi

 nancial planning with consideration of grid 

development and correction of plans with consideration 

of    Smatr Grid    technologies; 

• common reference data system is established 

and applicable, it is subject to regular update and 

supplement, no data redundancy, the data scope is 

suf

fi

 cient, data management process is reviewed 

following the requirements of data display in real time 

systems; 

•  high level of IT-system integration, suf

fi

 cient amount 

of equipment for data exchange and processing, 

possible online data receipt;

•  monitoring/planning of productivity/reliability and 

work execution are different activities; 

• specialists have both technical and economical 

skills, understand transformation of PAM targets and 

objectives according to smart energy technologies; 

•  PAM is treated as a key tool of ef

fi

 ciency improvement. 

CONCLUSION

To evaluate the organizational level of company’s 

maturity we performed the study of qualitative 

characteristics of higher-level PAM model components 

based on expert conclusions. The results show that today 

the majority of companies have the level of maturity 

“Application”, and some companies are transferring from 

the 

fi

 rst to the second level “Embedding”. 

JSC “Russian Grids” Subsidiaries understand PAM 

properly, they work on developing different PAM model 

components under the common concept, the established 

methodological, organizational and informational base 

is available for elaboration of complex solutions and 

formation of the common asset management system 

intended for short-term and long-term reliability and cost 

management in operational and investment activities 

during the whole life cycle of the assets.    

To achieve permanent ef

fi

 ciency of its activities and 

to provide successful transition to a higher level, JSC 

“Russian Grids” has to consider the most critical issues:

•  elaboration of the Common PAM Policy;

•  detailed elaboration of the higher-level PAM model;

•  formation of PAM target-setting model and the PAM 

ef

fi

 ciency monitoring and balanced scorecard system;

•  elimination of difference in PAM approaches of 

distribution companies with regard to common 

methodology and Standard documents, uni

fi

 cation 

of PAM approaches in JSC “Russian Grids” 

Subsidiaries related to non-documented processes with 

consideration of peculiar features of distribution and 

transmission grids; 

•  elimination of automation imbalance in individual 

Subsidiaries, improvement of the data exchange model 

and the target architecture of the information systems 

that enables actual and future PAM development.

The main aim of creation and implementation of a 

complex PAM system is to change existing processes and 

provision of successive transition from conventional cost 

planning by the rate of maintenance to asset life cycle cost 

management beginning from design till de-commissioning 

and utilization as well as to risk management, 

fi

 nancial 

and production ef

fi

 ciency management of JSC “Russian 

Grids” and Subsidiaries. 

REFERENCE LIST

1. http://www.rosseti.ru/ — the of

fi

 cial site of JSC 

“Russian Grids”.

2.  Executive Order of the Russian Federation Government 

dated 03.04.2013 

№

 511

−р

 “Strategy of Grids 

Development in Russia”.

3. I.

О

. Volkova (2008). Ef

fi

 cient PAM in Grid Companies: 

Theory and Methodology. Edition of Polytechnic 

University, Saint-Petersburg, 255.

4. Typical Standard of PAM in Distribution Grid 

Companies of JSC “Russian Grids”, Order dated 

11.05.2012 

№

 204.

5.  Asset Management — an anatomy, The Institute of Asset 

Management, Issue 1.1, 2012, http://theiam.org/what-

is-asset-management/anatomy-asset-management.

6. Volker, L., Van der Lei, T. E., & Ligtvoet, A. 

(2011, October). Developing a maturity model 

for infrastructural asset management systems. 

In Proceedings of 10th Conference on Applied 

Infrastructure Research—Infraday 2011, 7—8 October, 

TU Berlin, Berlin. Carnegie Mellon University.

7. Swinarski, M., Jackson, E., & Kishore, R. (2008). 

Conceptualization and Measurement of the Capability 

Maturity Model (CMM): An Examination of Past 

Practices and Suggestions for Future Applications. 

AMCIS 2008 Proceedings, 106.

8.  Kwak, Y. H., & Ibbs, C. W. (2000). Assessing project 

management maturity. Project Management Journal, 

31(1), 32—43.

9. De Bruin, T., & Rosemann, M. (2005). Towards a 

business process management maturity model.

10. Chemweno, P. K., Pintelon, L., & Van Horenbeek, A. 

(2013, September). Asset maintenance maturity model 

as a structured guide to maintenance process maturity. 

In 3rd MPMM (Maintenance Performance Measurement 

and Management) conference (pp. 58—70).

11. BSI PAS 55 Assessment Methodology (PAM), The 

Institute of Asset Management.

12. Asset Management Maturity Methodology, National 

Infrastructure Unit, New Zealand, http://www.

infrastructure.govt.nz/.

13. 

UMS Group PAS 55 Self-assessment, http://

umsgroupeurope.com/pas55/.