CITY OF PRINCE GEORGE

Transcription

1 ITY OF PRINE GEORGE Asset Management System Business Requirements and Implementation Plan Prepared for: The ity of Prince George 1100 Patricia Blvd. Prince George, B.. V2L 3V9 Attention: Ms. Wendy Nordin Prepared by: Earth Tech Inc. 6 th Floor Rosser Avenue Burnaby, B V5 6S3 ontact: David Main Tel: (604) Project No.: 93986_03 Date: November, 2006 \\P692\DMNFSL1\PGDOS\59885\1\PGDOS_n59885_v1_Asset_Management_System_Business_Requirements_and_Implementat ion_plan_word_version.doc

2 Table of ontents SETION TITLE PAGE NO. SETION 1.0 INTRODUTION & PROJET OVERVIEW Introduction Objectives of this Study...2 SETION 2.0 THE ASSET MANAGEMENT SYSTEM What is an Asset Management System (AMS)? Which Asset Management System is Best?...6 SETION 3.0 ASSET MANAGEMENT SYSTEM OPTIONS AND EVALUATION Asset Management System Alternatives Evaluation of Options...13 SETION 4.0 ORGANIZATIONAL RESOURES FOR THE ASSET MANAGEMENT PROGRAM Resourcing The Asset Management Program onfirm Organization ommitment to the Asset Management Program Asset Management Organizational Design Steering ommittee Asset Management Program Manager Departmental Asset Management Liaisons onduct Bottom-Up Assessment To Improve The ity's Asset Data Design EAMP Business Process...22 SETION 5.0 ASSET MANAGEMENT PLAN BUDGET ESTIMATE Resourcing The Asset Management Program Staff Resources ontinuation of JDE MMS Implementation...28 SETION 6.0 SUMMARY AND PROGRESS...29 APPENDIX A ASSET MANAGEMENT PLAN BUSINESS REQUIREMENTS...30 (i)

3 SETION 1.0 INTRODUTION & PROJET OVERVIEW 1.1 INTRODUTION The ity of Prince George has recently completed the first few phases of an approach to adopt a itywide strategic infrastructure asset management program. The following documents were produced in 2004 as Phase 1: Working Paper 1: urrent Prince George Asset Knowledge Working Paper 2: omparison with Municipal Best Practices Working Paper 3: Recommendations Based upon these exploratory studies, the ity of Prince George selected to implement an approach to asset management that is in general conformance with the best practice that is outlined in InfraGuide s Best Practice to Managing Municipal Infrastructure. This portion of the work was documented in: Network Level Asset Management Assessment Using the InfraGuide approach, in 2005, the ity undertook a top-down evaluation of most municipal infrastructure in order to determine the approximate magnitude of its infrastructure gap. The infrastructure gap as defined by InfraGuide is the difference between what the ity needs to be reinvesting in its infrastructure to ensure full life cycle financial sustainability from what it is presently reinvesting in its infrastructure. Like almost every city in anada, a significant infrastructure gap was quantified at a high level (see Figure 1.1 on the next page). Page 1

4 Section 2: EAMP Project Description Figure 1.1: ity of Prince George Infrastructure Gap (from Network Level Assessment Report) $30,000,000 $25,000,000 $13.1 Million (required reinvestment) $20,000,000 $9.1 Million (urrent reinvestment) $15,000,000 $10,000,000 $5,000,000 $ While this represents good progress in the initial stages in establishing an asset management program, the results so far forms only a snapshot using data that is already more than one year old. While awareness and knowledge of asset management issues has improved, asset management practices have not changed in any meaningful way, and infrastructure related funding is still set from pre-existing budgeting practices. 1.2 OBJETIVES OF THIS STUDY One of the challenges of maintaining an ongoing asset management program is in maintaining and managing the large amount of asset related data so that it can be used by asset managers in decision making. Essentially, individual asset managers must have the information to make the following decisions: How and when should I maintain the asset? When should I repair, rehabilitate, or alternatively, replace the asset? What is the optimal strategy for replacing the asset, taking into account other factors, such as technology growth, and infrastructure work that may be taking place in the same proximity as the asset? Will I have access to adequate funding to conduct the appropriate works at the designated time? Page 2

5 Section 2: EAMP Project Description The ity has therefore prioritized the need to develop an asset information management strategy to meet the needs of an asset management program that will assist asset managers in answering these and other important questions. In simple terms, the envisioned asset management system must be focused on helping the ity capitalize on the two primary benefits of the asset management function as shown in Figure 1.2 below. Figure 1.2: Benefits of Asset Management Asset Renewal/Replacement ost Optimized Asset Management Status Quo: No AMP Lower the ost of Renewal and Ensure Adequate Funding Extend the Life of Assets Time (100 Years) 1. The Asset Management Program seeks to identify the means to extend the useful life of infrastructure through appropriate asset specific maintenance. Specifically, this can be implemented through a maintenance management best practice strategy that encourages a focus on more proactive maintenance. While maintenance management is a business strategy, it can be effectively implemented with the assistance of a omputerized Maintenance Management System (MMS). 2. The Asset Management Program seeks to identify the most cost effective renewal and/or replacement strategies for all ity assets, and to ensure that adequate funding is in place when the works are optimally timed to occur. This forecast must allow for the full lifecycle of the assets. In the case of municipal assets, this can be as long as 100 years (which represents an approximate life expectancy of well constructed water and sewer mains). Seeing as full life cycle financial management is a relatively new practice for most anadian municipalities that budget and finance their operations using the cashbasis of accounting, this can be improved with the use of a long range capital asset planning and renewal system. Page 3

6 Section 2: EAMP Project Description The purpose of this study is to provide the ity with documentation detailing the business requirements for both the RPS and the MMS, to determine an appropriate software acquisition and implementation and finally, to estimate the resources required to acquire, configure, and continue to operate these systems based on the recommended strategy. Page 4

7 SETION 2.0 THE ASSET MANAGEMENT SYSTEM 2.1 WHAT IS AN ASSET MANAGEMENT SYSTEM (AMS)? Accurate and complete asset information is critical to achieving good asset management outcomes. Within virtually all anadian municipalities that have embarked on asset management information strategies, it is proving to be a significant challenge to design an overall system that is enterprise-wide in its scope, and allows information from any asset to be managed in association (and with knowledge) with every other asset related management decision. Part of the challenge is that in the past, city departments have often conducted individual and separate programs for asset maintenance and for documenting asset related transactions. Processes and systems used in one department may be quite different than in others. In order to begin consolidating city wide knowledge of all assets, there must first be a well managed and controlled asset inventory or register. As in virtually every anadian city that Earth Tech has examined through its extensive work in asset management and benchmarking, a single asset register does not yet exist in Prince George. This important requirement therefore implies that enterprise asset data should ideally be consolidated in a single Asset Register. Given the sheer number of assets owned by the ity, and the various natures of these many different asset classes, this poses a considerable computerized information management challenge. The degree to which this can be achieved will be vital to the long term success and efficiency of the ity asset management program. The generally accepted Information Management Best Practice is that the asset register (inventory) should be consolidated and individual asset entities should not be duplicated in various information systems. In implementation however, this is very difficult to fully implement cost effectively. For example: GIS has been recommended by many practitioners as the best system to house an asset inventory. While GIS has many applications within municipal linear systems (roads, sewer and water mains), it is not a useful tool for complex facilities such as water/wastewater treatment plants, buildings and other non-linear systems. A MMS is the logical system to store the primary asset inventory for complex facilities noted above, but this same inventory may conflict and/or duplicate the GIS asset inventory within the linear systems. MMS s do not have advanced asset management functionality and are constructed around operational and maintenance work-based activities (which are entirely focused on the short Page 5

8 Section 2: Asset Management System term), while asset management programs are asset-based and must factor in the long term (5 to 100 years). How should MMS, GIS, and AMS integrate with the JDE corporate financial system? MMS is designed around activity based costing principles, while most municipal budgets are designed around departmental object-base cost centers. The annual budgeting cycle that is central to the JDE system is not activity based. A recent asset related financial requirement is the coming need to comply with Public Sector Accounting Board recommendations. This will require municipalities in British olumbia to begin accounting for depreciation on capital assets by This is a fundamental financial requirement that should be incorporated into the ity s financial system. The ity s financial system will therefore have to access a current and accurate asset inventory. Regarding the above requirement, there is a strong argument to be made to ensure that the engineering and planning asset inventory is the same asset inventory that is being used to account for depreciation under PSAB. 2.2 WHIH ASSET MANAGEMENT SYSTEM IS BEST? The National Research ouncil has recently (July 2005) conducted evaluations of leading asset management software tools 1. (This evaluation was partially funding by the ity of Prince George through its participation in the Municipal Infrastructure Investment Planning (MIIP) project). There are many other software vendors in this rapidly growing market. Perhaps the most important conclusion however, agrees with the following important fact that makes the job of designing and implementing an asset management system challenging: As confirmed by InfraGuide and through Earth Tech s experience, there is no single computerized information system that can meet all asset, maintenance, and financial management related business requirements. The ity therefore begins the process of evaluating leading asset management systems with the following underlying assumptions: a. The current GIS system is an important foundation of the asset management business system strategy. It was implemented using current ESRI standards and with the recommended ESRI data models, and is therefore well positioned to be expanded with required asset management functionality. 1 Municipal Infrastructure Asset Management Systems: State-of-the-Art Review, Halfawy, M.; Newton, L. ; Vanier, D., July 2005; Page 6

9 Section 2: Asset Management System b. The JDE Financial system will continue to be used in the foreseeable future. The functional areas where the JDE system will continue to be used are Finance and Accounts, Purchasing, Accounts Payable, Accounts Receivable, Payroll, and Human Resources. The system is object based and not activity based, which will make it difficult to directly connect into activity-based applications (such as maintenance management). c. The ity presently uses the JDE Maintenance Module to track maintenance costs in some departments. This implementation effort has been in progress for about 1.5 years. The general consensus is that the system is functionally able to track and manage maintenance costs and resources but is not very user friendly or intuitive to use. This has inhibited the introduction of the system beyond a small number of staff who have been specifically trained in the module. d. The ity needs to implement maintenance management systems within their complex facilities (WTP, WWTP, buildings, arena, etc.), and within their linear systems (sewers, water mains, roads, etc.). At present the JDE Maintenance Module is not considered technically able to meet the maintenance management business requirements of the linear systems. e. The ability to link the MMS within the distributed network to the GIS will be valuable. This is not a requirement for the complex facilities however (GIS serves no useful purpose in the management of the treatment plants for example). Page 7

10 SETION 3.0 ASSET MANAGEMENT SYSTEM OPTIONS AND EVALUATION 3.1 ASSET MANAGEMENT SYSTEM ALTERNATIVES Given the constraints outlined in Section 2, three broad alternative Asset Management System strategies are available for consideration: Option 1: Implement a complete Asset Management System that includes best of breed functionality in both computerized maintenance management, and in long range capital planning. This strategy would result in there being two and possibly three separate asset registers being created and maintained. This alternative would see a maintenance management system from a leading vendor that is designed with public works requirements specifically in mind. Example vendors would include (but are not limited to) Hansen, ity Works, Maximo, etc. This solution would also see a stand-alone implementation of a long range capital renewal forecasting system, that might, but not necessarily tie to the MMS. Examples include Harfan and Riva Online. (The JDE Maintenance Module would be used in areas of the ity where the system can adequately meet the maintenance business requirements as well as, or better than the preferred best of breed solution.) This alternative assumes that the current JDE financial system will be used in a similar manner as it is today. Direct linkages between the selected MMS system might possibly set established, but would involve custom programming. Advantages: omplete asset management program functionality could be delivered in the most automatic manner currently possible. As some point, it may be possible to automate many repetitive asset management related functions, and minimize staff resources. The final system would be as intuitive for users as possible, which would likely improve the ease of implementation. Disadvantages: Design and implementation of the overall system would be very challenging on the organization, since it would likely require a significant change management effort, and require the intensive involvement of many ity departments and individuals. The resulting system would be difficult and expensive for the IT department to support and maintain, due to the complex customer cross system linkages that would be required. ost: This is the most expensive option in terms of capital costs, since it will likely require the complete acquisition of two new information systems, each with specific hardware and software costs. In addition to direct costs will be increased annual software support and maintenance costs, staff training costs, and implementation consulting assistance. Finally it is expected that the required cross system linkages will need to be designed and created through customized programming. These linkages will also require maintenance, especially during the software upgrading process. Page 8

11 Section 3: Asset Management System Options and Evaluation Risks: Installing complex computerized software systems is always risky in terms of meeting expectations and benefits. Adding to this risk is the distinct possibility that the JDE ERP system may be enhanced by Oracle to be able to meet all or most of the asset management system business requirements in the next 5 years. Such a system would be far more economical to implement, support, and maintain in the long run, and would ultimately provide a better solution. The ity might be in the position of replacing the Option 1 solution with a totally integrated package before the ity could obtain a return from its investment. Figure 3.1: Option 1 onceptual Diagram Tempest Utility Billing and all entre Tool Set Finance, Purchasing, AR, AP Tempest System Interface Financial System Interface JDE apital Asset Modeling and Predictive Tool Set Asset Register onnection Uncertain apital Planning Long Range Renewal Forecasting GIS System GIS GIS Workstation MMS Work Order Management System Work Order System Interface Option 2: Implement Asset Management System functionality in a phased approach that minimizes the duplication of the asset register. This alternative would see the ity implementing asset management related functionality in a manner that would seek to ensure that a single asset register is preserved for most asset management related functions. The ity would implement tools that can meet this requirement as they become available, and delay the implementation of other functionality until the technology is advanced to a point where the single asset registry can be accessed and managed in a supportable manner. This would advance the use of the JDE Maintenance Module in functional areas where the system can meet the defined business requirements effectively. Examples include Fleet, and in at least some Page 9

12 Section 3: Asset Management System Options and Evaluation complex facilities (for example, buildings, recreational facilities and possibly the wastewater treatment plant). The long range capital forecasting tool set would be acquired in the near term, with the provision that a supplemental asset register not be required (and that the tool set access the JDE and/or GIS database). This option would see the postponement of MMS functionality in infrastructure that is presently beyond the ability of the JDE Maintenance module to meet defined requirements adequately. This presently includes all city linear infrastructure, such as roads, and underground pipes. At some point in the future, a decision would be made to adopt an improved JDE Maintenance Module (with at least the ability to directly link to the GIS system in a supportable manner), or to acquire a separate MMS system that is optimized to provide state of the art functionality in the maintenance of linear systems. The MMS industry is changing very rapidly. In the past, a wide range of MMS products have been sold as stand alone software products, for the primary purpose of improving the productivity of a maintenance work group through better work order management and planning. Most MMS users could successfully operate both a MMS and Financial System with no data connections whatsoever. As the software advanced in functionality, the need to begin making linkages between the systems became more and more important. Recognizing the value in improving maintenance work practices beyond just work order management, MMS vendors began developing functionality in payroll, purchasing, inventory, and even AP. At the same time, traditional financial system vendors recognized an important market opportunity and also began developing functionality in a broad range of organizational activities, including work management, call centre, dispatch, and maintenance planning, etc. Due to the high level of complexity of all of these systems, it is becoming increasingly complex and expensive to maintain customized program linkages between systems from different vendors. Today, most organizations must still make the decision of deciding between best of breed functionality vs. seamless integration. What is expected to improve over the next few years is the functionality of work-based applications within leading ERP systems. Advantages: omplete asset management program functionality could be delivered for most ity infrastructure with the important exception of the ity s significant linear systems (and perhaps other sectors where the JDE Maintenance Module is not able to meet the business requirements). With a apital Asset Modeling and Predictive tool set, the ity can begin the difficult work of developing a long range renewal plan that is reliable enough to begin securing adequate funding, which is perhaps one of the most important functions of the asset management program. This would allow the ity to begin making progress in a steady manner in the near term. Disadvantages: MMS functionality on the linear system would not initially be available, which may make accurate tracking of costs on the linear systems difficult. This may result in inaccurate data for the capital renewal cost projections or life cycle cost calculations. Page 10

13 Section 3: Asset Management System Options and Evaluation ost: Initial direct costs would be limited to the acquisition of the apital Planning tool set (of where there appears to be only two in current use in the marketplace: Riva and Harfan (though others may be identified through an RFP)). In addition to direct costs will be annual software support and maintenance costs, staff training costs, and implementation consulting assistance. The other important cost category is internal staff resourcing time (see Section 4), but this is constant in all options. Risks: The major risk is that complete (and specifically MMS-functionality) asset management system functionality will be delayed in the ity s linear systems. Should it become clear in the near few years that the JDE Maintenance Module has little or no chance of meeting the maintenance system requirements in the linear systems, the ity will be faced with looking at Option 1 as an alternative. It is also possible that the JDE System may advance its functionality in conducting the long range renewal planning requirements, which might render the installed tool set recommended in this option obsolete. As of this time however, these requirements are far from JDE s present functionality. Figure 3.2: Option 2 onceptual Diagram Tempest Utility Billing and all entre Tool Set Finance, Purchasing, AR, AP Tempest System Interface Financial System Interface Long Range Renewal Forecasting apital Asset Modeling and Predictive Tool Set JDE JDE Maintenance Linear Systems MMS Phase 2 Fleet, Facilities Work Order Management System Linear Systems Work Order Management System Work Order System Interface GIS GIS System GIS Workstation Option 3: ontinue Implementation of JDE Maintenance and Meet Asset Management Requirements with Interim Tool Set This option is essentially the wait and see option. The JDE Maintenance Module functionality will continue to be rolled out into areas where the system can meet the requirements (e.g.: fleet, buildings, recreation facilities, etc.), but areas where the requirements cannot be adequately met will be delayed. JDE apital Planning tools will be examined for use in the long range capital renewal planning Page 11

14 Section 3: Asset Management System Options and Evaluation requirements, though at this time it does not appear that the requirements can be met. This option would see an interim tool set used to conduct this portion of the asset management planning functions. Most likely this would take the form of the Excel spreadsheet tools that we developed and used in the Network Level Assessment Report until such time that the JDE ERP system could adequately meet these requirements. Decisions regarding the MMS functionality on the linear systems would be deferred until the specific development direction of the JDE system is more clear. Advantages: Little organizational disruptions, and minimal direct cost. No risk of newly acquired tools and software becoming obsolete in the short run, or of system failure. Should JDE offer a complete and seamlessly integrated asset management system in the near future, the ity will be ideally positioned to adopt it with no loss of investment. Disadvantages: Limited asset management functionality. The Excel-based tool set was not designed to be used as a repeatable business planning process, and it required significant manual support. It is also susceptible to errors that can easily propagate through the tool set and result in erroneous reporting. ost: Very low direct cost. Mostly limited to internal staff time. Risks: The major risk is not making tangible progress on an asset management program. Figure 3.3: Option 3 onceptual Diagram Tempest Utility Billing and all entre Tool Set Finance, Purchasing, AR, AP Tempest System Interface Financial System Interface apital Asset Modeling and Predictive Tool Set JDE JDE Maintenance Fleet, Facilities Work Order Management System Work Order System Interface Long Range Renewal Forecasting GIS GIS System GIS Workstation Page 12

15 Section 3: Asset Management System Options and Evaluation 3.2 EVALUATION OF OPTIONS The ideal Asset Management System is a totally integrated and seamless set of applications that draw upon a single asset register for all of its transactions, but we know that presently, that hypothetical system does not yet exist. However, the overall business requirements for this hypothetical system are now becoming well documented, and it is only a matter of time (and considerable investment into new product development by leading software vendors) before such a system is available. This has been confirmed also by leading ERP companies, including Oracle (which now owns JDE) and SAP (which is also popular with anadian municipal governments). Through the business requirements documentation exercise undertaken in this project, we are now more clear about what the JDE system can and cannot do. For example, the JDE system can track and manage maintenance activities and costs in certain asset types (Fleet, facilities etc.). The JDE system however, cannot be easily connected to the GIS system and is not well suited for managing maintenance activities and costs on linear assets with custom programming and 3 rd party tools. There is still a significant gray area in which many of the evaluations will lie. For example, even in the current Works Order system, what defines ease of use? Newcomers to the JDE Maintenance Module will find it not particularly intuitive and certainly difficult to use until they receive adequate training, and are provided an opportunity to use the system frequently. The challenge in evaluating the three presented options lies more in where we expect the current JDE ERP system to evolve to over the next 5 years. If there is certainty that Oracle understands the ity s business requirements (which are virtually the same as most medium sized anadian municipalities wishing to implement asset management) and is committed to enhancing its product, delaying the implementation of some functionality until it can be conducted in the integrated ERP application would be preferable. If on the other hand, it appears that Oracle has little or no commitment to the JDE product, proceeding in a new direction would become favorable. In Table 3.1 below, each of the three options have been evaluated in comparison with one another on a range of important asset management system selection and implementation attributes under the general assumption that Oracle will continue to support and improve its JDE product offerings in a gradual but not groundbreaking manner over the next 5 years. Page 13

16 Section 3: Asset Management System Options and Evaluation Table 3.1: Evaluation of Asset Management System Options Option Attribute Option 1 Option 2 Option 3 Traditional MMS Work Order State of the art functionality Good functionality in areas where the JDE module can be used but not as intuitive as Option 1. No MMS functionality where JDE cannot meet requirements in the near term. Good functionality in areas where the JDE module can be used but not as intuitive as Option 1. No MMS functionality where JDE cannot meet requirements in the near term. MMS Ease of Use Good Fair Fair apital Asset Renewal Planning State of the art functionality State of the art functionality Limited to the use of existing Excel spreadsheets. onsistency of orporate Asset Inventory Likely fractured Intact Intact Ease of system implementation Ability to Make Progress on Asset Management Objectives Difficult Moderate N/A Once system is in place, complete progress in all areas can be made omplete progress in most areas, and high level progress in areas not initially supported by MMS. apital osts Very high Medium to low Very low Project Risk Very high Low Low Summary Evaluation High cost and risk outweighs its possible benefits. Not recommended. Appropriate mix of benefits with generally low risk, yet still keeping some options open with regard to MMS. Asset Management Planning can reliably commence. Recommended option. Unsure: Long term usability of Excel spreadsheets tools is not proven. Not appropriate for addressing important asset management issues. ould unacceptably delay asset management planning. Not recommended. 3.3 REOMMENDATION Based on the above evaluation, and the advantages of Option 2, it is therefore recommended that the ity commence that acquisition of a apital Renewal Planning system with an RFP that includes the noted capital renewal planning business requirement documented in Appendix 1. The ity is also recommended to continue its roll out of the JDE Maintenance Module to selected city areas. Fleet, and emergency services are good examples for future roll out... The city is finally recommended to delay the decision regarding MMS in the linear network infrastructure departments until a cleared understanding of the future MMS capabilities of the JDE system is achieved (it is expected that this migration path of the JDE system should become more clear over the next 6 month to 1 year timeframe). Should it become clear that the JDE system will be capable of the defined requirements, the ity can acquire a MMS that is optimized for linear system management and that can tie directly to the GIS. Page 14

17 SETION 4.0 ORGANIZATIONAL RESOURES FOR THE ASSET MANAGEMENT PROGRAM 4.1 RESOURING THE ASSET MANAGEMENT PROGRAM One of the most important misconceptions of Asset Management Planning is that it is an engineering process that is driven by computerized information systems. This is one of the reasons that programs become overly expensive to deliver and fail to meet their objectives. Like all management and planning processes, asset management is multidisciplinary in nature, and is process and information driven. Information Technology has the potential to improve the management of information, but the processes to be automated must be well understood in advance of computerization. The Asset Management Program therefore is a program that must include the three well understood relational segments as shown in Figure 4.1. The program must define each of the three segments and the methodology for each to interact with the others. Figure 4.1: Three Elements of a Successful Asset Management Program People: Organizational Structure Discipline/Background Training Information: Data Sources Strategic Information Plan Information Technology Process: Responsibilities Lines of ommunication Process Documentation and 4.2 ONFIRM ORGANIZATION OMMITMENT TO THE ASSET MANAGEMENT PROGRAM Even with state of the art information systems, day to day management of the asset management program will be a resource intensive process. If we accept that the ity has not been undertaking adequate asset management related activities in the past, one of the most significant changes is that possibly for the first time, a new range of tasks and activities must be undertaken on a regular and Page 15

18 Section 4: Organizational Resources for the Asset Management Program repeatable basis. While computerized information management systems can automate some of these functions, many must be incorporated into the day to day activities off all ity asset managers, and that periodically, an updated asset management plan must be prepared in the same way as other important long range plans. All of these activities will be new to the ity, and as such they will take additional staff time. The ity must be prepared to commit to the resource requirements. This portion of the study attempts to quantify the magnitude of the resources required and to make recommendations regarding an organizational design for the Asset Management Program Asset Management Organizational Design The Asset Management Program (AMP) should be directed by a team known as the Asset Management Steering ommittee (AMS). The AMS is selected to represent the different disciplines within the ity that must play a part in a successful program. The AMS should be a permanent committee to monitor and maintain the AMP and direct ity resources, using a team approach to achieve the program goals. The AMP should be led at a Program Management level, and the AMP Program Manager will be responsible to the AMS for the ongoing operation and management of the overall AMP. Each ity infrastructure department will be responsible for providing the required information to the AMP as directed by the AMP Program Manager. The following organization chart is recommended for the establishment of the AMP function and is detailed in the following sub-sections: Figure 4.2: AMP Program Organization hart ity Manager (AO) Asset Management Steering ommittee Asset Management Program Manager Departmental Asset Management Liaison (named from each department that manages infrastrucutre and/or assets) Page 16

19 Section 4: Organizational Resources for the Asset Management Program 4.3 STEERING OMMITTEE It is important that the ity demonstrates its commitment to asset management through the establishment of the Asset Management Steering ommittee. The Steering ommittee should report directly to a senior manager within the ity (for example, the ity Manager). This committee should be chaired by a manager who both understands the need for the asset management program, and who can also play the role of an asset management champion. The champion will be tasked with promoting the benefits of asset management in an enthusiastic way and to obtain the buy-in from the different ity divisions participating in the project. The Steering ommittee hairperson need not be the Asset Management Program Manager (see Section 4.4 below). The chairperson as well as the Asset Management Program Manager should both be able to represent the AMP to ity stakeholders. The Steering ommittee should be made up of representatives from a range of departments that are directly responsible for the management of infrastructure. In addition to departmental representatives, the FO and the ity Engineer should be included in the committee, since the asset management plan will have a strong impact on budgets, rates, and resulting capital projects. Other representatives should include staff from Information Technology and/or GIS. The objectives of the steering committee should be established at its inception and should be reviewed on a regular basis to ensure that they remain relevant to current conditions. Strategic objectives for the Steering ommittee would be as follows: Formulation of the ity s strategic asset management objectives and policies. ommunication with and education of stakeholders on asset management-related issues. oordination of internal and external asset data collection efforts. Establishing the structure of the asset management database and consideration of linkages between Divisions and to other municipal applications. onsideration of the establishment of levels of service and benchmarks for service delivery. Recommendation of the resources necessary for the successful and timely installation of the EAMP, and the subsequent resources to ensure its routine operations. Review and approval of the annual AMP proposed work plan, and guiding metrics. Page 17

20 Section 4: Organizational Resources for the Asset Management Program 4.4 ASSET MANAGEMENT PROGRAM MANAGER The committee should be supported by a staff level individual who is directly charged with the ongoing organization, establishment, and subsequent ongoing management of the AMP (the AMP Program Manager). The initial one to two years will require a significant amount of direct effort to establish a fully functional asset management program, and will require ongoing leadership and management of a project manager. Specifically, the AMP Program Manager will need to conduct the following: Lead the RFP process for software selection Assist in the implementation of the selected software Manage other consultants that might be required to support the Asset Management Plan Take a lead role in preparing the initial data, algorithms, and formulas for the first run of the asset management plan Assist in the design of a range of asset management related reports Provide training and coordination to the ity departments that are expected to contribute to the asset management plan Provide communication and education services to ity staff and stakeholders regarding the asset management strategy (this might be done in association with ity ommunication Services). Once the AMP is established, and has completed a number of cycles successfully, this role should not require a full time effort. The program manager will work with the various city departments to complete the specific work assignments as they see fit, and with the approval of the Steering ommittee. 4.5 DEPARTMENTAL ASSET MANAGEMENT LIAISONS Even though the Asset Management Program Manager will be responsible for coordinating the ity-wide asset management plan, it is recommended that each department that undertakes the maintenance or management of assets should be responsible for conducting their own asset management related responsibilities. This includes ensuring that all work is being properly captured in the Maintenance System (where it is implemented), or alternatively that interim cost capturing mechanisms are in place. Asset management related tasks for each departmental liaison will include elements of the following (these will likely require specific training in each area): Maintaining department-level asset inventories, valuations, and condition assessments that will be used to estimate remaining asset life. Page 18