Town of Bradford West Gwillimbury. Asset Management Strategy and Plan Project. Asset Management and IT Strategy Report

Transcription

1 Town of Bradford West Gwillimbury Asset Management Strategy and Plan Project Asset Management and IT Strategy Report February 2012

2 Table of Contents 1. Introduction AM Strategy Objectives and Scope The Town s Asset Management Vision and Mission Available Background Information 3 2. Asset Management What is Asset Management? Asset Management Guiding Principles Municipal Asset Management Framework Municipal Asset Management Framework Data and IT Considerations for Asset Management 7 3. AM and IT Strategy Methodology Overview of the Asset Management Gap Analysis Determining the As Is State of Current Asset Management Practices Determining the Improvement Plan Gap Analysis Results Business Drivers Asset Management Current Practice Observations Current Practice Scores & Opportunity Gaps Conclusions Summary Recommendations Quick Wins and other Suggested Activities for the Town for AM Development Resourcing IT Systems Recommendations Implementation Roadmap and Schedule 25 GHD Town of Bradford West Gwillimbury Asset Management Strategy Report i

3 Appendices Appendix A Gap Analysis Results Appendix B Improvement Initiatives Line of Sight Appendix C Improvement Initiatives Monitor Appendix D Improvement Initiatives Review Appendix E Improvement Initiatives Enablers Appendix F IT Functional Requirements Appendix G Information Technology Business Case List of Figures Figure 2-1 Municipal Asset Management Framework 5 Figure 3-1 TEAMQF Focus Areas 11 Figure 3-2 TEAMQF AM Maturity Scale 12 Figure 4-1 Asset Management Current Practice Score 17 Figure 4-2 Asset Management Strategy & Plan Roadmap 26 List of Tables Table 4-1 Business Drivers Customer Expectations 14 Table 4-2 Business Drivers Legislative Requirements 15 Table 4-3 Business Drivers Operating Environment 16 Table 4-4 High Level Conclusions 18 Table 4-5 Summary of Recommended Technology Systems 22 Table 4-6 Summary of Improvement Initiatives 23 GHD Town of Bradford West Gwillimbury Asset Management Strategy Report ii

4 List of Abbreviations Abbreviation AIP AM AMP ARP BCE CAM CAPEX CIP COTS CWMS EA EDMS ERP FMECA GIS GL HR IT LCC LOS MCA OPEX O&M PAS55 PMBOK PSAB PM PMIS QA QC RCD SDLC SRM TEAMQF Town W/WW Definition Asset Investment Plans Asset Management Asset Management Plan Asset Replacement Plan Business Case Evaluation Comprehensive Asset Management Capital Expenditures Capital Improvement Program Commercial Off The Shelf Computerized Work Management System Environmental Analysis Electronic Document Management System Enterprise Resource Planning Failure Mode Effect and Criticality Analysis Geographic Information System General Ledger Human Resources Information Technology Life Cycle Costing Level of Service Multi Criteria Analysis Operating Expenditure Operations and Maintenance Publically Available Specification for Asset Management Project management Body Of Knowledge Public Sector Accounting Board Project Management Project Management Information System Quality Assurance Quality Control Reliability Centered Design System Development Lifecycle Service Request Management Total Enterprise Asset Management Quality Framework Town of Bradford west Gwillimbury Water and Wastewater GHD Town of Bradford West Gwillimbury Asset Management Strategy Report iii

5 1. Introduction 1.1 AM Strategy Objectives and Scope In September 2011, the Town of Bradford West Gwillimbury (the Town) commenced its Asset Management Strategy and Plan Project (the Project). Through this initiative, the Town is seeking to improve its asset management (AM) competencies to improve the management of existing infrastructure and prepare for future growth. These competencies include the ability to provide a defined and measurable level of service, understand the impact of growth, manage risks associated with asset failures, and develop cost-effective short- and long-term management strategies. 1. Document a vision for asset management (AM). 2. Define the actions and resources required to achieve this vision as well as enable continuous improvement of service delivery 3. Define information technology (IT) systems required to manage the Town s assets and the means to optimise the use and cost of these systems. 4. Understand the current and long-term costs to sustain the Town s infrastructure over the full lifecycle of the assets. This Asset Management and IT Strategy report is intended to help the Town understand the requirements to achieve these objectives. This report outlines asset management best practices, documents observations/findings and conclusions relating to the current status of the Town s asset management practice, and recommends a prioritized improvement plan (AM Roadmap) to help the Town achieve its asset management vision. The roadmap considers the unique challenges of a small municipality with limited resource availability. 1.2 The Town s Asset Management Vision and Mission The goal of infrastructure asset management at the Town of Bradford West Gwillimbury (the Town) is to meet a required level of service, in the most cost-effective manner, through the management of assets for present and future customers. A formal approach to the management of infrastructure assets is essential to demonstrate balanced and responsible custodianship to customers, regulators and other stakeholders. Essentially, asset management practices will help the Town balance Levels of Service, Cost of Service and Risk. The Town s Asset Management Vision, defined by the Project Team at a visioning workshop on September 14, 2011 is: The Town of Bradford West Gwillimbury (the Town) will implement a practical Asset Management Program based on leading principles and practices that will enable sustainable and cost effective service delivery to our community. We will apply leading asset management practices and continuous improvement techniques to help the Town meet the community s current and future infrastructure needs. The following Mission statement was developed to support the Vision for asset management: GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 2

6 We will take an active role in developing an effective Asset Management strategy for the Town and supporting road map to move the Town towards excellence in Asset Management. We will develop an Asset Replacement Plan for each service area to guide short-, medium- and long-term planning. We will develop an IT Systems Strategy and associated roadmap to support our Asset Management practices. We will employ enhanced decision making that ensures community assets are replaced in a proactive manner. We will implement continuous improvement based on high quality data for cost effectiveness. We will empower staff, commit the necessary resources, deliver training, take responsibility for generating progress and results, to ensure milestones are met and Phase 1 initiatives are implemented. 1.3 Available Background Information The consulting team conducted a desk audit of documents provided by the Town in the following categories: Strategy, Physical Assets, Technology Assets, Business processes and People/Organisation. This provided adequate background information for the consulting team to prepare for the gap analysis and asset replacement planning exercises. GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 3

7 2. Asset Management 2.1 What is Asset Management? Asset management is often defined as a way of thinking that is built around a body of best practices that focus on seeking the lowest total lifecycle cost of ownership for infrastructure assets while continuously delivering services on a sustainable basis at a level customers and stakeholders require and at an acceptable level of risk to the community. The International Infrastructure Management Manual (IIMM), Version 4, 2011, describes the key elements of asset management as: Providing a defined level of service and monitoring performance, Managing the impact of growth through demand management and infrastructure investment, Taking a lifecycle approach to developing cost-effective management strategies for the long-term that meet that defined level of service, Identifying, assessing and appropriately controlling risks, and Having a long-term financial plan which identifies required expenditure and how it will be funded. 2.2 Asset Management Guiding Principles A formal approach to the management of infrastructure assets is essential to provide services in the most cost-effective manner, and to demonstrate this to customers, investors and other stakeholders. Further, the formal approach must include mechanisms for monitoring its own effectiveness, and adjusting processes to allow for continuous improvement and adaptation to the changing needs of the Town. For asset management to be effective, the organizational culture must embrace it, and this in turn requires that each member of the organization: Understands how it works and what each member s role is, Is competent in the day-to-day application of the practices and techniques, and Feels confident that the practices are, in fact, improving and benefiting the organization. As such, to be truly effective, implementation of asset management must be guided by high-level elements, such as a vision, missions and strategies, supported by investments and initiatives at the program and asset level levels. That is, strategic decisions should direct investments in the right solutions, for the right reasons, at the right time. GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 4

8 2.3 Municipal Asset Management Framework To be truly functional, asset management must be carefully fitted to the unique organizational environment. To help organizations understand their environment and the components of their business, a business framework or model may be developed to illustrate the organization s business logic, business elements and activities, and their relationships to each other. A business framework also helps an organization to understand its day-to-day activities in the context of the broader business to enable effective and efficient management and continuous improvement. An Asset Management business framework is a representation of an organization s business embodying asset management best practices (i.e., to continuously deliver service levels customers desire, at minimal lifecycle cost, and at an acceptable level of risk). An Asset Management Framework is an appropriate business model for the Town because of the nature of its business, which is highly asset dependant. 2.4 Municipal Asset Management Framework The following generic Municipal Asset Management Framework is recommended for the Town and it consists of several major elements, as outlined Figure 1 below. Figure 2-1 Municipal Asset Management Framework GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 5

9 This Municipal Asset Management Framework consists of several major elements: Business Drivers and Services: These provide the boundaries or book ends to the framework. Business drivers are the external influences to the Town s business and include service requirements such as customer expectations, corporate goals, regulatory requirements, and environmental factors such as the general economy, and political and social priorities. Business drivers are used in the model to prioritize inputs of resources and establish focus on organizational activities that address the business drivers. The primary output of the Town s business is the delivery of a variety of community services (e.g. Water, Wastewater, Transportation & Facilities) and programs that will satisfy stakeholder s needs the ultimate outcome. Processes: Processes contribute directly to the delivery of community services and should cover the entire lifecycle of the asset, with individual practices required for different asset types, and include planning, service delivery, and performance management, each of which is described below: Planning: Converts the business drivers into a set of operational plans that describe how the municipality will deliver services: the scope and quality of services, the programs (or processes) that will be used to deliver the defined services and the inputs required, including financial resources, human resources, and technology resources. The levels of planning include: Strategic Planning which converts business drivers into longer term strategies including the scope and quality of services to be delivered (e.g., Corporate Strategic Plan, Transportation Master Plan, Customer Levels of Service Plan) Tactical Planning which converts long term strategies into medium term business plans and budgets including the programs (or processes) that will be used to deliver the defined services, and the inputs required over the medium term such as infrastructure, financial, human and technology resources (e.g., Performance Management Plan, Business Improvement Plan, Asset Management Plan, Long Term Financial Plan, Human Resources Plan, Information Systems Plan) Operational Planning which converts tactical plans into short term executable plans and budgets (e.g., 10-Year Capital Plan, Annual Operating Plan). Service Delivery: Implements the shorter term executable plans including the following: Lifecycle asset management including: Asset creation or acquisition Asset maintenance Asset renewal (rehabilitation and disposal) Operations and programming Work and resource management Financial management and administration Human resources management Information systems and data management. GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 6

10 Performance Management: Checks that the Town is doing what it intended to do at multiple levels: meeting stakeholders needs (the ultimate outcome), delivering the defined scope and quality of services (the key output), delivering the defined programs through the efficient and effective use of infrastructure, financial, human and technology resources (interim outputs). Activities (all of which will take place at multiple levels (outcomes, outputs, programs, and inputs)) include: Monitoring actual results and reporting actual against targets over time, including benchmarking Assessing gaps, and continuous improvement. This framework should be developed in more detail as the asset management program continues and each element should be tailored to the unique needs of the Town. 2.5 Data and IT Considerations for Asset Management Data and IT are among the core elements of a sound AM program. In Figure 1, Information Systems (IS) and Data management are elements of the Service Delivery activity in centre of the Asset Management framework. Being one of the central elements of the framework, IT systems and Data are also used to support the surrounding AM activities, namely, Performance Management, Planning and Service. Data and Knowledge The asset data and information form the basis of every decision made by the Town. The categories of data commonly used to support AM activities are: Primary data such as registry, location, valuation and physical attribute data Secondary data such as maintenance, condition, detailed attributes, basic performance, failure mode data Tertiary data such as advanced-analytics oriented data to support optimized decision-making. Each piece of data must be collected, validated, updated, maintained and stored, and these activities are time-consuming and costly, so it is essential for the organization to define which attributes will be collected for which assets. The quality, accuracy and availability required for each data element should also be defined. The investment in each piece of data collected should be balanced by the value or benefit obtained through the use of that data. For example, for major capital assets it is important to collect failure history and manufacturer information to support more informed procurement decisions in the future; however, failure and manufacturer details may not be necessary to track for less expensive assets. Similarly, data used in regulatory reporting is critical, and must be collected. Data should be co-ordinated and managed across the Town to ensure that all business activities are being supported by the required availability, accuracy and quality of data. Best practice data management also strives to ensure that data is only being collected once, and aims to minimize the amount of data duplication in the system. GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 7

11 Information Technology Systems IT systems are enablers for business processes and provide the vehicle for the input, storage, organization, analysis, and retrieval of asset-related data. The efficiency of an organization is highly dependent upon the functionality, level of integration, and software solutions used to support asset operations. Information systems come in a variety of forms, including card/paper-based, computer spread sheets, stand-alone databases, or centrally administered electronic systems. Each type of system is associated with different levels of cost and complexity in terms of initial investment, maintenance and staff training, as well as associated benefits, such as efficiency improvements and analytical sophistication. The categories of IT systems for AM activities are: Primary applications (and databases) such as financial systems, customer and property records, complaint/customer management systems, asset registers, plans and drawing records, geographic information systems (GIS), maintenance management systems, and operations and maintenance manuals. Secondary applications such as knowledge management systems, inventory/resources/spares management and purchasing systems, predictive models (for primary failure modes), capacity/utilization models, condition assessment and record system, emergency response plans, and contract management / administration systems. Tertiary (lifecycle) applications such as risk assessment (e.g., consequence of failure), treatment (risk reduction) options, optimized renewal decision making, lifecycle cost system, mobile computing systems, project management applications, maintenance analysis software, performance monitoring applications, and stores/ spares optimization application. IT systems should be co-ordinated and managed across the Town to ensure that all business activities are being supported by the required functionality, and to improve integration of systems, so that data and information can be efficiently shared across departments. Implementation Considerations The IIMM 2011 lists the following key considerations when implementing AM Information Systems (AMIS): Governance and management structures to provide overall direction and control, The information requirements of core business functions, The ability to develop the AMIS to meet longer-term needs, The ease and efficiency of the AMIS user, The resources required to implement and maintain the AMIS, A consistent corporate approach to system development, and Effective documentation and understanding of supporting business processes and how these will need to change. In other words, best practice implementation of IT systems and data processes for AM is guided by highlevel coordination and management, and supported by appropriate investments and initiatives in GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 8

12 technology and training. Mechanisms for monitoring and continuous improvement ensure that IT systems and data processes are regularly adapted to the changing needs of the business. GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 9

13 3. AM and IT Strategy Methodology 3.1 Overview of the Asset Management Gap Analysis To help define an appropriate strategy to meet the Town s asset management vision, the Town s current processes and practices needed to be reviewed and assessed. This involved completing a gap assessment of these processes and practices against what is generally regarded as industry best practice. Literally hundreds of asset management processes, practices, techniques and tools have been developed over the past several decades. Through this AM program, the Town should has select and deploy only those that make the best business sense given its specific needs and resources. The asset management framework elements described in the previous section form the structure for the gap analysis that is used to measure where the Town is in its asset management practices relative to where it wants to be within a specified period of time. The gap is the distance between the as is of the current environment and the to be of the desired future state of the organization. GHD uses a proprietary tool (TEAMQF) developed and refined over the past 20 years in over 150 jurisdictions to determine the gap. The gap analysis process facilitates clear identification of the Town s asset management practices relative to: The best run asset-intensive organizations across the municipal sector. What is reasonable and relevant for the Town This latter aspect is particularly important not all industry best practices are affordable by or even applicable to every organization. It is important to identify best appropriate practices those best practices that fit the Town s unique needs, and then to customize a work plan and measure progress against that benchmark. 3.2 Determining the As Is State of Current Asset Management Practices Through workshops with relevant Town staff, GHD developed an understanding of the Town s decisionmaking processes and supporting data, systems and organization. These observations and findings represent the basis for the gap assessment scores. To help define an appropriate strategy to meet the above vision, the Town s current processes and practices needed to be reviewed and assessed. This involved completing a gap assessment of these processes and practices against what is generally regarded as industry best practice. To complete this assessment, GHD applied its gap assessment process that is based on our Total Enterprise Asset Management Quality Framework (TEAMQF). This framework is built around leading practices that are grouped into nine asset management program elements illustrated in Figure 2. GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 10

14 Figure 3-1 TEAMQF Focus Areas The following provides a listing of the leading practices in each of these areas: Setting Direction - AM Policy, AM Strategy, Demand Analysis, Setting AM Objectives 200 Programming - Accounting & Costing, Strategic Planning, Capital Expenditure Evaluation. 300 Preparation - Maintenance Strategy and Maintenance Decision Making, Maintenance Program Review and Analysis, Asset Management Plans (AMPs), Implementation of AMPs 400 Implementation - Creation and Acquisition, Asset Operation, Asset Maintenance, Work & Resource Management, Rationalisation & Disposal Asset Monitoring - Asset Condition Monitoring, Asset Performance Monitoring, Incident Investigation 600 Management System review - Management System, Business Risk Management, Asset Risk Management, Continuous Improvement, Legal, Regulatory & other Requirements People & Organisation - Organisational Issues, People, Commercial, Communication 800 Data & Information Processes for Managing Asset Knowledge, Asset Data and Knowledge, Activity Data and Knowledge GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 11

15 900 Technology Information System Issues, Financial and HR Information Systems, Asset and Work Management Information Systems, Supply and Logistic Management Information Systems, Advanced Information Systems The line of sight (see Figure 2) between organizational strategic direction and the day-to-day activities of managing assets is a vital component of the asset management system. This aligns the top down aspirations of the organization with the bottom up realities and opportunities of the assets. Further details on leading practices for each of the above areas are provided in Section 4. This process assisted in determining which best asset management practices are most appropriate to the Town, given its current practices and operational environment. Not all industry best practices are relevant to every organization an organization may not be culturally ready for certain practices, the cost to deploy the practices may exceed the return, or the practices may simply be unnecessary. This logic has driven the development of the Town s AM and IT Strategy. Through a series of workshops with Town Division staff, GHD developed an understanding of the current decision-making processes, data, and information systems related to asset management. This gap assessment process assisted in determining which best asset management practices are most appropriate to the Town, given its current practices and operational environment. The Town was evaluated on the following AM Maturity Scale (see Figure 3). Note that PAS 55 is the UK s Publically Available Specification of Asset Management and is the UK standard for AM Certification. Figure 3-2 TEAMQF AM Maturity Scale Not all industry best practices are relevant to every organization. For example, an organization may not be culturally ready for certain practices, the cost to deploy the practices may exceed the return, or the practices may simply be unnecessary. This logic has driven the development of the Town s AM Strategy GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 12

16 Overall the Town s asset management development can be characterised as between Awareness (the organisation is aware of the importance of AM and is starting to apply this knowledge) and Establishing (the Town is developing its AM activities and establishing them as business as usual) on the asset management maturity scale. 3.3 Determining the Improvement Plan Based on the results of the assessment, GHD has prepared a list of recommended strategic actions that will help close the gap between current and appropriate asset management practices. These strategic actions will improve the Town s business practices across all asset management program elements. In addition, we have identified a number of early implementation (Quick) wins that the Town could consider for continuing the momentum for AM and also show some early benefits that can gain support for the overall program. GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 13

17 4. Gap Analysis Results 4.1 Business Drivers This section of the report describes the key business drivers for the Town, as identified from discussion with key staff and our experience in the municipal sector. Business drivers describe the impetus for the business and supporting assets the unique set of customer expectations, corporate goals and legislative requirements for the Division that are used to set priorities for balancing the asset management program elements and determining an appropriate improvement program for the Town. The current business drivers, as determined with Town staff, are outlined in the following sub-sections Customer Expectations A customer is anyone who uses a product or service that the Town produces or delivers, including tax and ratepayers, visitors, and employees of businesses. The Town s customers pay rates/taxes with the expectation they can enjoy a certain quality of life or other benefit. General customer expectations typically fall within the categories listed in Table 1. Table 4-1 Business Drivers Customer Expectations Customer Expectations Affordability and Price Responsiveness Health and Safety Flexibility Benefits the Whole Community Sustainability Benefits the Whole Community Accessibility Community Involvement Efficiency Description A reasonable, fair service with clear value for money Minimal impacts from emergencies, staff respond quickly, politely and efficiently No health nuisances, injuries or illnesses; minimized hazards for all users Cooperation with other service providers Assets are available as needed to anyone who needs them, and provided to facilitate growth Mitigation of environmental effects, strategies such as waste to energy for waste minimization Assets are available as needed to anyone who needs them, and provided to facilitate growth Availability and range of services, frequency and open hours for collection, diversion, residual disposal, availability of information and education Responsive customer service, consultation and call centre Collections made on time, every time Strategic Direction The Town s Council met on two occasions in January 2011 to establish its strategic priorities for this term of Council. The current term runs from December 2010 through to the end of November Altogether, 26 strategic actions were identified by Council. Through a consensus approach, Council arrived at 10 strategic actions that are deemed to be highest priority for this term. The 10 strategic actions are as follows: Design and construct external services required to service the highway 400 employment lands. Review the downtown revitalization study and develop an implementation plan. Develop a master plan for the Henderson property. GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 14

18 Develop an active transportation plan. Prepare a plan for the development of the Town s administration building. Develop a plan for surplus Town facilities. Develop a heritage master plan. Create opportunities for housing our aging population. Review and implement asset management plans (i.e. water, waste water, roads, and buildings). Undertake a feasibility study for providing public transit services Legislative Requirements Minimum levels of service are often defined by legal minimum requirements such as those listed in Table 2. Table 4-2 Business Drivers Legislative Requirements Legislative Requirements Building Code Act Bylaws and Local Regulations Emergency Management Act Environmental Protection Act The Municipal Act Occupational Health and Safety Public Sector Accounting Board Highway Traffic Act Accessibility for Ontarians with Disabilities Act, 2005 Development Charges Act, 1997 Public Transportation and Highway Improvement Description All facilities must comply with the Act Enacted to provide a range of provisions to protect public interests Requires lifeline utilities to function in an emergency Basic requirements for licencing Power of general competence for municipalities Responsibly for a healthy and safe work environment Sets accounting standards for the public sector Sets out the rules of the road, licensing, enforcement Providing for persons with disabilities The council of a municipality may by by-law impose development charges against land to pay for increased capital costs required because of increased needs for services Sets out the responsibility for the safety and maintenance of highways Environmental Assessment Act Public Service Works on Highways Act Public Works Protection Act Dictates process to be followed for transportation improvements with regards to impact on the environmental and public consultation Guidelines/requirements for constructing, reconstructing, changing, altering or improving a highway It includes any railway, canal, highway, bridge, power works, and any provincial and any municipal public building. It also includes other building, place or work designated a public work. GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 15

19 Legislative Requirements Environmental Protection Act Lakes and Rivers Improvement Act Lakes and Rivers Improvement Act Ontario Water Resources Act Public Lands Act and forests; Safe Drinking Water Act Sustainable Water and Sewage Systems Act, 2002 Description Prohibits discharge of any contaminant to the environment in amounts exceeding limits prescribed by the regulations; prohibits discharge of generally regulates public and private use of lakes and rivers; Generally regulates public and private use of lakes and rivers; Enables the passage of regulations regarding Ontario s water supplies Generally regulates the use, management, sale and disposition of public lands Generally regulates drinking water treatment and distribution systems Provides the framework for implementing full cost accounting Operating Environment The Town works within the global economy and environment and, therefore, must consider the following drivers as is listed below in Table 3. Table 4-3 Business Drivers Operating Environment Operational Factors Cost Sustainable Business Practices Optimized Asset Renewals Environmental Impacts Customer Service Political Pressure Knowledge Management Description Services are funded by property taxes and rates (Water, Wastewater) Maintaining programs as well as infrastructure Newer equipment is needed The growing community needs to be thoughtfully considered Training for frontline staff is a strategic priority Bylaws can impact how the community interprets service programs Capturing the substantial experience of existing staff GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 16

20 4.2 Asset Management Current Practice Observations The following sub sections provide a summary of Best Practice and Current Practice observations made by GHD based on the workshop and follow up interviews. The Town s Current Practices formed the basis of the Gap Assessment score. Overall, the Town is aware of best practice asset lifecycle processes, but the processes are not documented nor are they applied consistently throughout the asset lifecycle or across the entire asset portfolio. Areas of strength include processes for recording historical demand and understanding customers and other stakeholders, knowledge of asset performance through various monitoring programs, asset creation and acquisition, and operations including handling of customer issues. 4.3 Current Practice Scores & Opportunity Gaps GHD scored each of the Asset Management Elements by comparing observed current practice against best practice. Using the PAS 55 scale of proficiency in asset management scoring system described in Section 3.2, we found that the Town demonstrated a level of asset management development in the range of Aware (1) and Establishing (2), as shown in Figure 4 below. This was the typical score range for most of the TEAMQF focus areas. This result is also typical of municipalities commencing the development and implementation of an asset management program. Figure 4-1 Asset Management Current Practice Score A number of opportunity gaps were identified that can be closed over the short and long terms. The detailed observations of the current situation, relevant leading practices and conclusions/opportunity gaps are provided in Appendix A. GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 17

21 4.4 Conclusions Based on the review results a number of high level conclusions were developed that provided input for the AM development process. These are listed in Table 4 below (further details are provided in Appendix A): Table 4-4 High Level Conclusions TEAMQF Focus Conclusions An asset management policy would eb helpful to guide the various departments & business unit The AM strategy will be in place with a supporting roadmap to guide subsequent AM development at the end of this project (early 2012). Demand analysis is done to varying degrees in the various business units. Corporate and departmental AM objectives are not in place. Line of Sight 100 Setting Direction 200 Programming 300 Preparation 400 Implementation Current technology solutions limit the abiltiy to do lifecycle costing, there is a need for more comprehensive asset accounting and costing as part of an AMP. Asset planning and decision making processes are adhoc and not standardised across the Town. Inconsistent approach to capital project planning and delivery. Opportunity to develop a streamlined process that documents Levels of Service (LOS), leverages risk management, lifecycle requirements and business case evaluations for the capital project process. Inconsistent approach to maintenance management has led to an overall reactive work environment. Comprehensive AMPs by major asset class will help the Town s ability to better manage its assets. Informal, inconsistent approach & lack of standard technology enablers to support project management. Operating procedures vary in completeness and some may not be current. Emergency plans are not updated/incorporated into an overall Business Continuity Plan for the Town. Informal maintenance processes in place (the Plants are better developed than other areas). Resource management is limited by a lack of a CWMS for most areas. The Just-in-Time approach to materials management seems to work well for the Town Informal processes exist for asset rationalisation and disposal. GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 18

22 TEAMQF Focus Monitor 500 Asset Monitoring Conclusions Informal approach to condition assessment and monitoring. Informal approach to asset performance monitoring not linked to LOS. Adhoc approach to asset incident investigations. Informal quality and audit process for AM. Review 600 Management System Review Informal AM Knowledge base risk to the Town of knowledge loss. Very good approach to risk management from a water quality perspective. Informal approach to business risk management in other areas and failure mode prediction. Informal approach to continuous improvement. The Town does a very good job in area of regulations and legal requirements. The Town has established good corporate sponsorship for AM. Informal approach to AM skills development. Inconsistent approach to acquiring and monitoring the work of external resources. Enablers 700 People and Organisation 800 Data & Information Technology Staff s knowledge about AM is gaining momentum in the Town. No clear approach for Town-wide management and co-ordination of data is needed. Asset data register not in place to support AM practices. A high-level hierarchy is in place but should be developed to the lower levels to support operations and maintenance. The Town has well-developed GIS data, and could benefit from integrating with other Systems Existing CMMSs are inadequate to support the work/asset management needs of the Town. Procedures for entering, validating and updating data are needed to improve consistency and quality of data. The effort to procure a replacement to MAS should be continued, and co-ordinated with software procurement ofr Work & AM. Complaints should be received by a centralized call centre and/or web site, and interfaced with the work management system. 4.5 Summary Recommendations A number of Improvement Initiatives have been developed to help the town take advantage of the opportunity gaps identified in the assessment. These recommendations (Table 5) have been developed consistent with the four major assessment categories (Line of Sight, Monitor, Review and Enablers). The overall AM Development Roadmap (Figure 5) considers a five year period to move the Town towards GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 19

23 leading practice it is expected that the Town can achieve the level of Competence on the mature scale over this timeframe. The decision to pursue a goal of Excellence would be dependent on availability or resources and the potential benefits from this additional effort. In recognition of the Town s resource constraints and the need to continue providing service to its constituents while implementing AM, it is recommended that the Town takes a lead role in AM development leveraging external resources to provide education, develop frameworks, tools, templates, facilitation and quality review of key deliverables developed. Initiatives should be prioritized and detailed implementation plans for each initiative should be scheduled over reasonable timeframes based on resourcing constraints. Initiatives are also based on the Top Down followed by the Bottom-up approach to data collection and use The Top-down approach allows the Town to start working on initiatives using known data (e.g. actual condition scores) and use subjective data (e.g. knowledge of the O&M staff about the condition of an asset) in areas where there are gaps. During the Top-down process, critical assets with subjective data (as well as low confidence data) are identified for more accurate data collection (e.g. CCTV data in the case of sewers). Over time, the Top-down followed by the Bottom-up approach to data collection yields accurate data with a high degree of confidence for critical assets. Eventually, the Town will end up with good data on all of its assets. Table 5 also shows activities that the Town can consider starting work on the various initiatives recommended by the consulting team. In addition, we have identified a number of early implementation (Quick) wins that the Town could consider for continuing the momentum for AM and also show some early benefits that can gain support for the overall program. 4.6 Quick Wins and other Suggested Activities for the Town for IT Steering Committee (already implemented) During the course of the assessment the consulting group identified inconsistent approaches to technology system selection and implementation. In addition, there were instances where IT staff were not aware or involved in some of the procurement initiatives for technology. A recommendation was made to create an IT Steering Committee that will be responsible for coordinating, approving and providing guidance on all technology system selections and implementations. This committee should have representatives from each business unit. 2. PM Optimisation The various business groups can quickly assess if they are doing the right preventive maintenance on their key assets though a simple PM Optimisation process (this can be done in 2012): 3. AM Training 1. Prepare a list of PMs by asset showing all asset related failures. 2. For all assets with PMs to prevent failures that do have failures review the existing PMs and update or add new accordingly. 3. For all assets with PMs and no failures review and update the associated PMs 4. Similarly for all assets without PMs that have associated failures (and you do not want failures on) prepare suitable PMs. GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 20

24 Conduct an AM Awareness training program to get a large cross-section of Town staff trained on AM fundamentals and brought up to speed on the overall AM Development program and benefits to all stakeholders. The Town can leverage the results of this project to develop suitable communications and training materials in 2012 and start the education and buy-in process with its staff. 4. Risk Management In order to better allocate scarce funds, the Town should consider developing and implementing a risk framework (using MS Excel) to identify high risk assets and use this as the starting point for the CIP process. For 2012, the risk process should be piloted in one business group e.g. water transmission/sub-transmission lines. 5. Town-Wide CMMS 6. There is an immediate need in all areas for a commercial CMMS that is fully supported by a reputable vendor. Develop functional requirements that support the needs of all business units and select a suitable system and pilot in the treatment plant area before rolling out to all groups. Consider lower tier systems that have been specifically developed to support all of the needs of small municipalities. This can get initiated by making procurement of a Town-wide CMMS a high priority for the IT Steering Committee. This Committee should be able to review and re-prioritize all of the current IT budget Items in order to find resourcing to initiate the CMMS selection process in AM Development Resourcing It is anticipated that most of the AM development work identified in the Roadmap will be done by Town staff over a number of years. However, the Town should consider two new positions to support implementation and ongoing coordination/management of the program: 1. Corporate Asset Manager provides overall guidance and support to all departments and business units for program development and sustainability. This role is currently being carried out in part by the Manager Capital Projects. AM Development and Sustainability would eventually be a full time responsibility. 2. Business Analyst (Technology) ongoing support for IT Master Planning, Data Governance and System Selection/Implementation and Integration. This is necessary as new systems come are selected and implemented this will be a full time assignment if the option for a Corporate CWMS is pursued. Initially, staff will focus on critical assets and fill data gaps as they start implementation. However, as AM practices and concepts become integrated into revised or new roles and responsibilities data collection will become part of the overall AM culture and daily jobs of staff. 4.8 IT Systems Recommendations As essential enablers of AM, Information Systems and Data and Knowledge are addressed within the AM improvement initiatives. Initiatives E3 to E8 focus on Technology development. High-level functional GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 21

25 specifications for a Computerized Work/Maintenance Management System (CWMS) are provided in Appendix E, and a sample CWMS business case is included in the Appendix F. Table 5 below provides a summary of the Core technology systems that are recommended for AM development and sustainability: Table 4-5 Summary of Recommended Technology Systems System Description Timeline Computerised Work/Maintenance Management System Document Management System (consider MS SharePoint) Asset Management System Supports work/maintenance and AM processes for all business units Corporate system for capturing, sharing and managing key asset knowledge Risk management, deterioration modelling and CIP development Short Term Short medium Term Long Term GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 22

26 Table 4-6 Summary of Improvement Initiatives Focus Area Line of Sight Monitor Review No. Improvement Initiative Key Activities that the Town Can Initiate With Internal Resources Tangible Benefits L1 L2 L3 L4 L5 L6 L7 L8 M1 M2 R1 Develop a Town-wide AM Policy and AM Framework to guide ongoing AM Development Develop and Implement a Level of Service (LOS) Framework that supports all asset classes Develop a Capital Planning and Delivery process based on leading practices (that links LOS, Risk, Business Case Evaluations) Develop and implement a Strategic Maintenance Management policy supported by a corporate /CWMS Develop and Implement Comprehensive Asset Management Plans (AMPS) by major asset class Develop and implement a standard project management process (based on leading practices - PMBOK) supported by a PMIS Develop and maintain a master list of procedures (Operating/Maintenance) - update existing procedures and add new as necessary Redesign all business processes based on leading practices identifying desired roles/responsibilities, technology and performance management requirements Develop and implement a Town-wide performance Management System that links Levels of Service to asset operations and maintenance supported by appropriate technology solutions Develop and implement a continuous improvement process that includes failure and incident investigation Develop and Implement a Quality & Audit process to ensure that the AM System is yielding the desired results Develop an AM Policy building on the AM Vision document that was prepared as part of this project Develop the Town s AM Framework starting with the generic framework that was developed in this report Document existing LOS and supporting metrics for major asset classes Consider using the three tier framework (Corporate, Customer, Asset/Technical LOS) and start populating this framework with existing LOS Prioritize and fill in gaps Document the As Is work flow associated with the CIP process Update this to reflect a common process that can be followed by all groups Obtain training on basic and advanced Maintenance Practices Develop As Is and To Be Maintenance Workflows Update the Preventive Maintenance Program Link the above with the CWMS selection/implementation process Develop the AMP Table of Contents & Guidelines Select one asset class and populate the AMP for this asset class with the ARP output from this project Prioritize and fill in gaps Develop and implement a plan to get key PMs PMP certified PM process - start with the PMBOK project management process for a consistent approach, this can be updated to reflect the unique needs of the Town as the PM practice improves Use qualified PMs to develop the PM manuals and train other staff Each business unit develops a list of all procedures that are necessary to be effective at their job rate the quality of each existing procedure and identify missing ones Prioritize and fill in the gaps on an ongoing basis Develop a list of all the business processes that are necessary for effective asset management rate the quality of documentation and identify missing ones Provide training to staff on business process documentation and redesign Prioritize business processes and redesign them on an ongoing basis Leverage the work done on the LOS Initiative (L2 )in the area of Asset and Technical LOS to build a simple performance dashboard for O&M Include metrics identified from the Business Process re-design in initiative L8 Conduct training on Failure Investigation & Continuous Improvement Apply these concepts starting with major failures implement and track recommendations Document existing QA process Identify key AM processes and deliverables already in place and conduct quality checks on deliverables TEAMQF Area Focus Phasing (Term) Consistent approach to asset management for all asset classes 110, 120, 140 Short Provides a clear focus on corporate, customer and technical levels of service alignment on what is important Effective planning and delivery - right projects, at the right cost right time and for the right reasons Achieves the right mix of reactive and proactive work - can yield significant savings in lifecycle costs The most important AM deliverable lays out the short, medium and long term asset needs smooths out the funding profile and reduces overall lifecycle costs More effective and efficient project delivery over the project life cycle ensures projects considers the requirements of O&M. Helps with ongoing O&M and also reduces the risk of knowledge loss to the organisation Efficient business processes all value added steps, least number of people involved and fully leverages technology solutions - Productivity savings Ability to track what is important, make timely adjustments when there are deviations and identify continuous improvement opportunities Ongoing improvement and savings by learning from the past and doing things better Ensures that everyone does AM practices as expected and reliably delivers high quality results overall lower cost of asset ownership 130, 140 Short 210, 420 Medium 310 Medium/Long 220, 230, 320, 330 Medium 420 Medium 410, 510 Short/Medium 430, 440, 450 Short/Medium 520 Medium/Long 530, 640 Long 610 Medium/Long GHD Town of Bradford West Gwillimbury Asset Management Strategy Report 23