WATE R O&M S E RV I CE S An asset management perspective
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1 WATE R O&M S E RV I CE S An asset management perspective
2 Smart asset management solutions create long term value With more than 150 years of water industry experience and responsibility for operations and maintenance across the world, Veolia Water understands the challenges involved in managing water infrastructure. We draw on proven systems, global knowledge and resources to enable us and our clients to make informed, effective asset management decisions. The core of our business is to deliver municipal and industrial water services with integrated management of investment and risk. This minimises the long term cost of running the infrastructure. High quality data. A focus on capturing high quality, relevant asset data and disciplined reporting means asset management decision-making is always transparent and justified. The value delivered by our water industry specific asset management solutions are: Effective risk mitigation. Safety, environmental and performance risks are managed to ensure business continuity and minimum exposure to costly incidents. Reliable performance. All regulatory and contract requirements are achieved. Asset performance is reliably delivered to ensure service levels are sustained into the future. Efficient investment. Operating and capital expenditures are established based on best practice and optimised to minimise the asset s whole of life costs. DRIVERS Regulatory compliance Client needs Stakeholder priorities Customer expectations 2. Our commitment to excellence in service and value is always applied, regardless of whether the assets we manage belong to our clients or to investors. APPROACH Integrated risk management Life cycle planning Asset management culture Water industry best practice Our approach to asset management IN AUSTR ALIA, VEOLIA 12 water treatment plants Two seawater desalination plants Four water recycling plants Four wastewater treatment plants Plants from 0.8 ML/d to 250 ML/d I N N E W Z E A L A N D, V E O L I A Water services for 370,000 people 2,750 km of networks Eight major contracts 10 water treatment and eight wastewater treatment plants with flows in excess of 3 ML/d WORLDWIDE VEOLIA 350,300 km of water distribution networks 143,300 km of wastewater mains 5,089 water production plants 3,377 municipal wastewater treatment plants CORE BUSINESS LONG TERM COMMITMENT For Veolia Water, asset management is core to our business. A top priority at the strategic level, our asset management systems comply with the publicly available specification for asset management PAS55:2008. The Veolia Water asset management framework is fully integrated into the company s Business Management System. This includes finance, risk management and certification to standards for occupational health and safety (AS/NZS 4801), quality (ISO 9001) and environmental management (ISO 14001). We are committed to managing assets to ensure the best long term outcomes. Regardless of who owns the assets, Veolia Water seeks to achieve the best balance over time between investment, operational risk and performance. This minimises the total cost of ownership over the life of the infrastructure. Asset management is embedded in our culture. Our operators are our maintenance front line. They are well equipped to effectively execute asset management tasks on a day-to-day basis, carrying out inspections and undertaking servicing and cleaning activities. This allows us to identify and appropriately respond to an asset s needs by continuously improving maintenance planning and assigning action priorities based on asset criticality and risk. C A SE STU DY High quality asset lifecycle data From the first days of commissioning in the Western Corridor Recycled Water Scheme, Queensland, the Veolia Water operations and asset management teams worked together to collect reliable cost and activity data at the asset level. When implementing the Global Asset Management and Analysis system, one of the key priorities was to establish a strong asset management culture where asset data quality is a priority and reported through key performance indicators. Reliable asset data is always available to stakeholders to effectively plan, target improvements and justify asset investment. VALUE Reliable performance Efficient investment High quality data Effective risk mitigation 3.
3 Our approach to asset management TAILORED SOLUTIONS GLOBAL EXPERTISE WATER SPECIFIC TOOLS There is no one size fits all for asset management. From a small wastewater treatment plant in Oamaru Bay in the Thames-Coromandel region of New Zealand to large scale drinking water production plants such as Sydney s Desalination Plant in Australia our asset management solutions are adapted to suit the needs of our stakeholders. Our network of asset management professionals share best practice techniques. Globally, Veolia Water is an integral part of an extensive knowledge base through its international parent company Veolia Environnement. This global expertise provides the latest asset management techniques and innovative solutions from around the world for our clients through a knowledge system, as well as a formal research and development program. Our practical, proven asset management solutions for the water industry enhance maintenance and capital planning. We customise our services to ensure our solutions deliver value for money to clients and customers given diverse infrastructure challenges, risk profiles and budgets. Asset management at Veolia Water covers all areas of water services and contract types, including: water and wastewater C A SE STU DY Global networks for maintenance excellence In the United States, Veolia Water applies a reuse and recycling maintenance review framework based on desalination classical Reliability Centred Maintenance (RCM). networks and high risk operations to deliver significant greenfield and brownfield sites above and below ground municipal clients such as large metropolitan utilities and small rural councils industrial clients regional and urban locations Current contracts include delegated management, concession, BOO/T, DBO, O&M, alliance and service agreements, with a duration range from two to 30 years. 4. This is selectively implemented on high value savings. In Naugatuck, USA, the application of RCM led to a reduction of downtime by 54 days of a fluidised bed incinerator, translating into US$700,000 benefit to the bottom line from increased uptime, along with a major reduction of risks. In Wellington, New Zealand, this RCM framework was also applied to a wastewater operation to develop a more cost-effective preventative maintenance program and a critical spares holdings based on mitigating over AU$200,000 (NZ$260,160) in risk annually. We have extensive experience in identifying and applying the most appropriate tools to a diverse range of water assets. This enables an asset management approach that considers the needs of the end user, ensuring critical water and wastewater infrastructure always remains reliable and available to service the community or industry. A key strength is the proven nature of our streamlined systems and processes their accessibility ensures buy-in from operators to engineers and managers. Global Asset Management and Analysis (GAMATM) GAMA, the new generation of Computerised Maintenance Management System (CMMS), was specifically developed to suit the needs of the water industry. It provides a software platform for sound maintenance delivery, reporting and data capture. GAMA is successfully implemented across 144 Veolia Water contracts worldwide. In Australia, GAMA is used in the Western Corridor Recycled Water Scheme in Brisbane, the Gold Coast Desalination Plant, as well as a number of treatment plants in Sydney and regional Victoria. At the heart of GAMA is a process framework that aligns the structure of the plant asset register. The standardised approach to the asset register allows the asset management team to benchmark performance, identify opportunities for improvement and savings and provide knowledge to operations globally. Contract Asset Renewal Management System (CARMS) The Veolia Water CARMS system is a financial management decision support tool which tracks long-term capital expenditure and forecasts renewal needs. The system combines past renewal cost information, price escalation, asset deterioration models and risk information. The tool allows operations to maintain up-to-date renewal cost models, which are easy to calibrate annually and prioritise on the basis of risk. The long term renewal forecasts are an important outcome. They allow the organisation that bears funding responsibility to ensure there is sufficient provision in future years. This is especially relevant for operations with ageing infrastructure, when deterioration and obsolescence can combine to create expensive demands for investment. Implemented on more than 16 operations in Australia and New Zealand, CARMS enables our clients to clearly understand the state of their assets and the work needed to ensure service levels are never compromised. 5.
4 Our asset management capabilities Veolia Water is adept at delivering turnkey asset management solutions, from identifying level of service requirements through to creating comprehensive asset management plans. Our asset management capabilities include the following: MAINTENANCE MANAGEMENT The efficient inspection, maintenance and repair of assets is essential to achieving the required levels of service. Veolia Water uses skilled personnel, supported by computerised systems to plan, deliver and report activities. Key performance indicators are actively monitored to ensure service requirements are achieved at the right level of maintenance investment. Our experience with total productive maintenance ensures there are always close working relationships between operations, maintenance and asset management staff. As a result, asset management is embedded in our culture and deeply integrated into how we run our operations. ASSET DATA MANAGEMENT Our aim is to deliver accurate, high quality and meaningful data from our information systems. This data is summarised to generate useful business knowledge, to optimise the management of asset risks, as well as maintenance and renewal plans. To achieve this, all asset management information systems are delivered with active engagement of all key stakeholders, so the information is made available at the right time to decision-makers. 6. CRITICALITY AND CONDITION ASSESSMENT Asset management relies on knowing the risks associated with asset failure. Veolia Water performs criticality assessment of all assets to establish maintenance programs and mitigation priorities for managing its assets. It also draws on a range of condition assessment techniques to identify potential problems and determine remediation needs. In addition, Veolia Water deploys appropriate condition monitoring technology (from vibration analysis to thermography) to enable cost effective predictive maintenance on key assets. LIFECYCLE CAPITAL MANAGEMENT Sound capital planning relies on projecting the costs of managing assets throughout their life, so future expenditure needs can be reliably planned. In its operations in Australia, Veolia Water develops and maintains comprehensive asset renewal models as an important input along with configuration changes into capital works planning. For Veolia Water it is important the capital planning process is made as seamless as possible with capital works project delivery. The aim is to ensure all intervention and configuration data arising from the installation of new assets is reliably recorded in information systems, providing stakeholders with accurate records of all changes. SPARES INVENTORY MANAGEMENT Veolia Water is accustomed to the disciplined management of spare parts inventory. This involves the identification, procurement, control and auditing of stock (in many cases with the aid of mobile devices with barcode scanners) as well as the tracking of stock movements. In addition, Veolia Water carries out systematic reviews of its critical spares needs to establish the potential downtime risks and properly balance these against the cost of holding inventory. PLANNING AND RELIABILITY ENGINEERING Strategic and tactical planning activities are a key activity for Veolia Water asset management staff, who must work with stakeholders to produce appropriate reports and contract specific plans. This asset management planning function is enhanced by reliability engineering. Sound engineering analysis reduces the risk of failure and minimises maintenance costs. Veolia Water s specialised personnel focus not only on specific equipment performance issues, but also on the overall performance of the collective assets, such as plants and entire networks. Reliability Centred Maintenance is selectively applied to ensure key assets are maintained at the lowest total cost to the owner, in terms of investment and risk. M A I N T E N A N C E P R I O R I T I S AT I O N C H A R T 7.
5 VEOLIA WATER AUSTRALIA AND NEW ZEALAND PTY LTD Head Office/NSW regional office Level 4, Bay Centre 65 Pirrama Road Pyrmont Sydney NSW Queensland regional office PO Box Adelaide Street PO Level 15, 127 Creek Street Brisbane Qld Victorian regional office Level William Street Melbourne Vic New Zealand regional office PO Box Great South Road Papakura 2110 New Zealand
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