LIFECYCLE MANAGEMENT OF UTILITY ASSETS A PRACTICAL APPROACH

Transcription

1 LIFECYCLE MANAGEMENT OF UTILITY ASSETS A PRACTICAL APPROACH Dr. Petros Kolovopoulos (Hydro-Comp Enterprises Ltd, Cyprus), Dr Dinos Constantinides (Hydro-Comp Enterprises Ltd, Cyprus) Key words: Asset Management, Institutional Strengthening, Data Quality Abstract Lifecycle Management of assets enables Utility to manage, track, and control all asset-related information and business processes throughout the complete asset life cycle. It helps Utilities to reduce asset operations and maintenance costs and it provides an efficient mechanism to manage assets from design, construction or acquisition through to retirement. The adoption of Asset Management principles and the implementation of appropriate methodologies and systems ensures the sustainability of a reliable network asset register, enables an efficient and cost-effective Repairs & Maintenance operation, enables proper conservation planning with the main objective of reducing un-accounted for water (UFW) and provides input to planners and engineers towards network optimisation, an important step towards future infrastructure planning. The transformation of the Technical Services of the Utilities includes interventions in three areas: 1. IT solutions: The implementation of IT systems with respect to Network Asset Management, Maintenance Management, Non-Revenue Water reduction, Rehabilitation planning and Management Reporting. 2. Data Quality: The improvement of data quality for both commercial and network data. 3. Institutional Strengthening activities with emphasis on Problem Analysis, Priorities for Change, Business Processes, Training and Action Plans formulation & implementation. This paper explains Asset management principles and best practices methodologies and information systems and explains how a Utility should implement such systems and practices. It further describes the effects of the proposed transformation in terms of increase in revenues, reduction of operational expenditure and capital expenditure for future expansion as well as its strategic importance in management and policy decision making. Reference is made in the paper to on going projects in Serbia and South Africa that are implementing network asset management principles through adopting appropriate bestpractice business practices and information systems. Lifecycle Management of Utility Assets - A practical approach page: 1 of 1

2 1 INSTITUTIONAL STRENGTHENING PROJECTS 1.1 The use of IT in institutional strengthening The majority of current projects in institutional strengthening comprise of two major components, that of implementing business processes and that of training personnel. This exercise would be more beneficial if it was carried out in conjunction with the implementation of appropriate operational information systems. The use of such systems that should encompass best-practice business processes would render the transition to new processes less painful and more effective. In particular the areas that would benefit most would be: a. Commercial management b. Network Asset management c. Maintenance management d. Life cycle management of assets 1.2 Management reporting Despite the use of information systems in many Utilities data integration is at a low level and resulting management reports to address problems are poor. Attention is needed in effecting in introducing appropriate systems where lacking and integrating all systems toward an effective management reporting system. 1.3 Network Management Network management is fundamentally concerned with service delivery supplying acceptable quality water in sufficient quantities and in a cost-effective and reliable manner to the consumer. Meeting these objectives involves business processes that deal with all facets of network management, ranging from network data management and network rehabilitation to operations and maintenance. It also requires specialised information systems for Maintenance management and Network Asset Management that will provide the necessary integration with other management functions and deal effectively with the idiosyncrasies of network data. Management and engineering decisions that impact service delivery are dependent on accurate and timely management reports and statistics, which are, in turn, dependent on the quality of network data; a proper network asset management system has separate libraries for each different service and for each service it uniquely defines all network elements. For example, it uniquely defines water supply elements, such as pipes, pump stations or valve chambers, in terms of both their hydraulic characteristics and geographic location through its GIS interface in such a way that it can be used for both hydraulic analysis and maintenance planning. Output from the demand management activities plays a major role in some of the network management functions. For instance, network optimisation is done according to the guidelines of the Network Optimisation Plan produced by the demand management function, or capital budgeting is done according to the Upgrading Plan. Lifecycle Management of Utility Assets - A practical approach page: 2 of 2

3 The diagram below indicates the interaction between objectives (project) services (consulting work that has to be carried out) and information systems for effective network management. Figure 1: Project Stages Systems and Services 1.4 Lifecycle management of Utility Assets At present Utility asset management is poor if non-existent at most Utilities. Maintenance backlogs (e.g. pipe replacement) are carried out based on not-so-relevant criteria, whilst asset valuations are rarely based on asset condition or the breakdown history of the asset. Appropriate Lifecycle Management methodologies using appropriate tools have to be introduced that will enable the Utilities to manage, track, and control all asset-related information and business processes throughout the complete asset life cycle. The methodology can help Utilities reduce asset operations and maintenance costs and it provides an efficient mechanism to manage assets from design, construction or acquisition through to retirement. The adjacent diagram illustrates the main facets of such a methodology. 1.5 MIS department An appropriate definition for an MIS system is: An information system that integrates data from all the departments it serves and provides decision making support for management, operations, maintenance and planning In many cases vendors use the word MIS inappropriately adding further confusion to the industry. Vendors selling telemetry and SCADA systems supposedly sell MIS, vendors selling Management reporting systems do the same and even GIS implementations have been called MIS because they have been enhanced to do some thematic mapping. In effect any system that does not integrate the network data with the commercial data can not be called an MIS system. The following diagram includes an example of a typical MIS system made out of different blocks of information systems and appropriate activities. Lifecycle Management of Utility Assets - A practical approach page: 3 of 3

4 Figure 2: Typical MIS System The introduction of such appropriate systems will prompt the formation of proper MIS departments in Utilities that will have an invaluable role to play both in conservation planning, infrastructure planning and as a decision support system to management. 2 INFORMATION TECHNOLOGY SOLUTIONS 2.1 Holistic Approach Effectively addressing both the technical and commercial issues that impact the Utility s bottom line requires a holistic approach - one that addresses all management levels and functions of the Utility from commercial to operations and engineering design. It also requires an approach that views all management practices and systems from a strong business perspective. Such a methodology, for instance, won t entertain the notion of attempting to solve a revenue problem by merely implementing a billing system; it would rather address commercial management in its holistic entirety from billing systems and customer services to effective debt management policies, tariff studies and proactive meter replacement programs. A similar holistic approach should also apply to the addressing of engineering problems. The reduction and control of unaccounted for water, for instance, should not only deal with performing leak detection or arbitrary network rehabilitation, but should be approached in a systematic manner that addresses all identified facets that influence it ranging from connections and meter reading problems to malfunctioning consumption meters, missing bulk meters and zoning problems. Consistent with this approach, the Utility should be viewed as a number of interrelated business processes and management functions that cover all departments and functions, ranging from commercial management to network management and demand management. Effectively integrating these core management functions on a sustained basis will require an integrated information system that cuts across interdepartmental boundaries. Such a holistic Lifecycle Management of Utility Assets - A practical approach page: 4 of 4

5 and integrated approach should not only result in improved customer services, but also in more efficient and dynamic operational systems that will improve overall network efficiency and reduce, on a sustained basis, unaccounted for water. 2.2 The use of IT Systems in Utility Management The IT solutions should cover all the commercial, technical and planning facets of a Utility s core business, including Billing, Customer Services, Operations & Maintenance, Network Asset Management, Demand Management and Network Analysis. The solutions should share a common relational database structure, and have functionally fully integrated, thus enabling the effortless and dynamic exchange of data and transactions between the different user departments. This integrated approach not only facilitates the seamless integration of the different management functions in the Utility, but will also improve general data integrity and quality. It will result in more relevant and appropriate management information and statistics. For instance, monthly consumption figures that originate in Billing & Customer Information will be used in Demand Management for dynamic demand forecasting. Meter reading data that originated from the same source will, likewise, be used in Operations & Maintenance as input to generate proactive meter maintenance or meter replacement programs. Figure 3: Use of IT Systems in Utility Management Management Reporting functions from operational business solutions can be used as input to the Management Executive for Strategic Planning Purposes. Customised Seamless Integration with external Enterprise management systems, as well as specialised technical systems, such as telemetry, enables a total solution covering every single process in a Utility, addressing all Operational, Engineering, Management and Strategic Planning aspects. Lifecycle Management of Utility Assets - A practical approach page: 5 of 5

6 3 DATA QUALITY 3.1 Data Improvement and Data analysis and management Normally a lot of emphasis is given by Utilities on improving business processes, but little attention is paid in the improvement of the quality of data, both network data and commercial data (Customer, connection, property, meter data, network data). The proposed approach addresses this in terms of allowing for appropriate exercises, such as network data validation, the geographical location of connections, the definition of walk routes and commercial data validation. Similarly appropriate procedures and systems are designed to collect and analyse all data for the purpose of producing discrepancies to be addressed through further investigations and for producing management reports that can be effectively used in conservation planning and infrastructure planning. 3.2 Network data Even in Utilities which maintain GIS systems poor procedures in terms of maintaining Network data, with the department responsible often not directly involved with Network Management, unplanned and unstructured network expansion, lack of as-built drawings and poor applications (systems) used in capturing the data often result in poor quality data; both in terms of accuracy and in terms of network connectivity. The absence of network data evaluation functionality in Network GIS systems makes the improvement of data quality very difficult. More Utility specific Network Asset Management system applications are needed with functionality that should include connectivity checks, hydraulic behaviour checks, automatic zoning and schematic network representation and others. Such functionality would enable the user evaluate the network data and instigate field investigations to establish the true network. Poor network quality data would result in reducing maintenance efficiency would prohibit Asset valuation exercises, make leakage detection difficult and hinder network analysis for optimisation and rehabilitation purposes. 4 INSTITUTIONAL STRENGTHENING OF TECHNICAL DEPARTMENTS Recommendations on institutional strengthening depend on the results of the operational reviews. In many cases it is proposed that the existing GIS department be expanded to cover the function of Network Asset Management and a separate Technical MIS unit/department to be established. The department s main tools are the implemented Network Asset and Demand Management systems. The department is responsible for operating and maintaining these systems. Department strategy is described below: a. Objectives of department: The main objectives of the department are: i. To ensure the sustainability of a reliable network asset register and the provision of both operational and management reports; the asset register will also form the basis of a planned Repairs & Maintenance (R&M) information system. Lifecycle Management of Utility Assets - A practical approach page: 6 of 6

7 ii. To provide output to be used in conservation planning with the main objective of reducing un-accounted for water (UFW) and as an input to network optimisation, being considered a necessary step towards future infrastructure planning. In effect, it is considered the newly formed Technical MIS department will have a considerable impact in increasing revenues, reducing operational expenditure and reducing capital expenditure for future expansion. b. Business processes: The table below lists the business functions and roles required for a successful operation of the information systems and for achieving the objectives set out. Table 1: GIS/ MIS Department Roles Business Function Role 100 System Management 110 System Engineering 120 System Administration 130 Software Training and Support 140 Network Asset Management 160 Commercial Data Evaluation (monthly) 170 Present Water Demand Analysis (monthly) 180 Present Sewer Load Analysis (monthly) 190 Non-revenue Water analysis (monthly) 220 Evaluation of Standards (six monthly) 230 Utility Performance Assessment (UPA) (quarterly) c. Methodologies: The business procedures should be in accordance to a set of methodologies approved by the Utility and finalised after discussions. These methodologies are important to ensure the implementation of best-practices at the department. The table below lists some of the methodologies required. Table 2: GIS/ MIS department recommended methodologies Methodology Documents Provided Item Description 1 Methodology documents 1 Data Quality Assurance Standards 2 Data Quality Assurance Methodology 3 GIS Data Capture guidelines for networks 4 Commercial Data Validation Methodology 5 Network Data Evaluation & Validation Methodology 6 Demand and Network Analysis Standards & Analysis Techniques 7 Utility Performance Assessment Model and Methodology 8 Support Methodology, Procedures and forms 9 Management reporting Procedures 10 Lifecycle management of Utility Assets Methodology 11 Network Asset Management procedures 12 Reduction & control of NRW Methodology d. Job descriptions: To carry out these roles the department might have to increase its staff for various specialised jobs. In any event all the departmental personnel Lifecycle Management of Utility Assets - A practical approach page: 7 of 7

8 have to receive training on both the use of the information systems and the new business processes involved. The first table below indicates job titles of key personnel whilst the table that follows gives their job descriptions in terms of different roles. Table 3: GIS/ MIS Department Job titles GIS/ MIS Department Job titles 1 MIS Manager 2 System Administrator (Water & Sewer) 3 System Engineer (Network Asset Management-Water & Sewer) 4 System Engineer (Demand Management) 5 GIS Operators (water) 6 GIS Operators (sewer) e. Departmental reporting: A list of deliverables of the department and the frequency has been defined. The items have to be defined in detail and appropriate reports designed in the systems provided to cater for them.the table below illustrates typical deliverables from such a department. Table 4: Typical deliverables of GIS/ MIS Department Deliverable Frequency Item Description 1 Operational reports 1.1 Network Asset Management ad-hoc 1.2 Financial Network Asset Management yearly 1.3 Hydraulic Analysis ad-hoc 1.4 Commercial Data Evaluation monthly 1.5 (Metered) Consumption Analysis monthly 1.6 Present Water Demand Analysis monthly 1.7 Present Sewer Load Analysis monthly 2 Management Reports for Infrastructure planning 2.1 Design Standards evaluation six-monthly 2.2 Demand forecasting six-monthly 2.3 Load forecasting six-monthly 2.4 Water Network Component Evaluation six-monthly 2.5 Sewer Network Component Evaluation six-monthly 2.6 Summary for Infrastructure planning six-monthly 3 Management Reports for Business Management 3.1 Water Quality monitoring monthly 3.2 Non-revenue Water analysis monthly 3.3 Utility Performance Assessment (UPA) quarterly 3.4 MIS report quarterly 4 Project Information ad-hoc Lifecycle Management of Utility Assets - A practical approach page: 8 of 8

9 5 INSTITUTIONAL STRENGTHENING PROJECT IN BELGRADE Introduction Belgrade Water Utility (BVK) employs 3061 people and services a city of over 1.4 million inhabitants and industry. In 2008, total water produced amounted to million m3. Losses both technical and administrative run to 32% of production (2008). Water sources are 40% from the river Sava and 60% from groundwater wells (basically filtered river water). Raw water is treated in 5 treatment plants. Water quality is consistently satisfactory, well in compliance with WHO standards. Belgrade Water and Sewerage Utility (BVK) had a variety of datasets and information systems in place. Some of the systems supported GIS functionality and some were limited to alphanumeric data. Datasets available included a. Network data in various formats b. As built drawings and existing designs in archive c. Various databases for water supply mains and assets data captured in projects d. Background data (i.e. aerial photos, streets, topography etc) e. Financial Asset Data f. Telemetry SCADA data g. Quality Control Data h. Call Centre data i. Commercial Data (Connections / Meters) As a result within BVK a heterogeneous environment existed in terms of systems, data and methods resulting in: a. Lack of updating procedures b. Difficulty in combining different datasets c. Lack of integration in terms of systems, data and procedures d. Data availability to a limited number of users Methodology The focal point of the methodology was the implementation of appropriate Asset Management system to be used as the custodian of the BVK network asset data. The selected system with its robust network data model and proper architecture was used as the backbone for the integration of the various datasets. Following the implementation of the Network Asset Management System, Demand Management and Operations and Maintenance systems were implemented to enable an Integrated Life Cycle Management of BVK assets, enabling functionality in Maintenance management, Design and Planning (hydraulic analysis), Information management and Management reporting. Lifecycle Management of Utility Assets - A practical approach page: 9 of 9

10 An extensive exercise to compile available data from different sources to one homogeneous validated dataset were implemented. The methodology was broken down into three main Tasks as follows: a. Task 1: Implementation of Integrated Information systems for life-cycle asset management b. Task 2: Building of Network Asset Register c. Task 3: Data Integration It should be noted that the methodology to become successful was combined with the following critical parameters: a. Data updating procedures in place from the beginning b. Comprehensive data evaluation and network data validation c. Quality assurance procedures d. Top management commitment and interdepartmental cooperation supports the procedure prior the beginning of the exercise and will be maintained on a high level during the execution e. Sufficient manpower and equipment Data Integration Once the registering of the full validated network along with primary information about network assets was ensured (i.e. pipe materials, pipe diameters, status of valves, reservoir capacity etc). integration of the existing operational datasets so that Life Cycle Management of Assets and Demand Management was initiated. The BVK asset register was enriched with all the Departmental islands of information, i.e. pilot valuation studies, assets financial data etc.. Such data were imported in the main database. During the import process measures was taken to preserve the data quality and integrity of the system The process followed is shown in Figure 4 below. Lifecycle Management of Utility Assets - A practical approach page: 10 of 10

11 Figure 4: Building of Belgrade Network Asset Register Data Integration Links were established so that register is updated automatically from on-line sources of data such as SCADA, Complaints, Quality Control centre. Additional critical systems were deployed and became operational to extent the usage of existing data to applications such as Operations and Maintenance and Demand Management. The system was deployed within BVK gradually, in accordance with the agreed action plan. The organizational sectors that have access to the integrated system include: a. Design and development sector b. Marketing and information service c. Water distribution sector d. Sewerage network sector e. Sales and billing sector f. Technical management system sector g. Business information system sector h. Quality control system sector Lifecycle Management of Utility Assets - A practical approach page: 11 of 11

12 6 INSTITUTIONAL STRENGTHENING PROJECT IN NELSON MANDELA MUNICIPALITY IN SOUTH AFRICA 6.1 Introduction Nelson Mandela Municipality (Port Elizabeth) is the fifth largest city in population and the second largest in terms of area it covers in South Africa. The Municipality is responsible for water supply and sewerage disposal in the area serving a population of over a million people, through approximately 250,000 connections and 3,500 km of pipelines. Over the last few years the Metropolis has implemented the following: a. Integrated GIS, MIS, O&M, Call Centre and network analysis systems for the water supply and sewer distribution systems.. The implementation included the capturing both water and sewer network data and validating these data through field validations. b. Demand Management system acts as a bridge across the Council s commercial and technical functions. It has facilitated the merging of town commercial and network data with engineering standards and town planning data, and provides the demand models forming the basis of interactive and dynamic conservation and master planning. Demand Analysis included consumption analysis, demand standard evaluation, generation of design flows for network analysis and capacity sizing of major components. The systems and services were used to address the most critical facets of conservation planning such as water system audits, unaccounted for water, leakage management, cost analysis and system-wide pressure management. Various conservation programs were also implemented. 6.2 Methodology The above investment could not be fully utilised due to shortage of skilled persons within the municipality. The Municipality secured the services of appropriate service provider to establish a separate Technical MIS Department with the main objective of the project to a. Achieve a risk-free, care-free operation and support for a 3-year period of the Network Asset Management, Network Analysis and Demand Management Information system for the water and sewer distribution systems for the Water and Sanitation Sub-directorate in a manner that conforms to industry best practice and to meet all the business information requirements and business processes of the Infrastructure and Engineering Directorate. b. The output of the services required to be further used in conservation planning with the main objective of reducing non-revenue water (NRW) and as an input to network optimisation, being considered a necessary step towards future infrastructure planning. In effect, it was acknowledged the considerable impact of the project in increasing revenues, reducing operational expenditure and reducing capital expenditure for future expansion. Lifecycle Management of Utility Assets - A practical approach page: 12 of 12

13 c. The services provided ensure the sustainability of a reliable network asset register and the provision of both operational and management reports. The asset register forms the basis of a planned Repairs & Maintenance (R&M) information system. Figure 5: Thematic Map of Remaining Useful Life assessment in Nelson Mandela Municipality 7 SUMMARY This paper describes a methodology on how institutional strengthening projects can empower Technical Departments to have a considerable impact in increasing Utility revenues, reducing operational expenditure and reducing capital expenditure for future expansion. The transformation of the Technical Services of the Utilities includes interventions in three areas: 1. IT solutions: The implementation of IT systems with respect to Network Asset Management, Maintenance Management, Non-Revenue Water reduction and Information Management. It includes the building up of a network asset management model, essential for establishing an accurate network database and managing investment programs 2. Data Quality: The improvement of data quality for both commercial and network data. 3. Institutional Strengthening activities with emphasis on Problem Analysis, Priorities for Change, Business Processes, Training and Action Plans formulation & implementation. It builds up capacity in the Technical department. Lifecycle Management of Utility Assets - A practical approach page: 13 of 13

14 Reference is made to the Institutional Strengthening projects in Serbia and South Africa where the on going institutional strengthening projects (1) enforce best-practice business practices, (2) provide a platform for managing and operating the Technical department, (3) provide a platform for proper lifecycle management of Utility assets, (4) provide proper management reporting, (5) assist in improving data quality through evaluation and help in the validation of both commercial and network data. Lifecycle Management of Utility Assets - A practical approach page: 14 of 14