Asset management strategy

Transcription

1 Asset management strategy

2 The asset management strategy has been prepared by MidCoast Water to support the implementation of its strategic objectives. This plan should be read in conjuction with MidCoast Water s Strategic Business Plan and Delivery Program For more information on this document contact: MidCoast Water PO Box 671 Taree NSW Adopted by MidCoast County Council on 24 June 2013

3 Contents 1. Introduction Asset Management within MCW Past, Present and Future Key Challenges Current Asset Management Initiatives Required Asset Management Initiatives Implementing the Asset Management Plan Asset Value Resourcing the AM Strategy Role of the AM Steering Committee (AMSC) Introduction MidCoast Water has adopted an asset management (AM) strategy (MCW # A468883), which provides MidCoast Water (MCW) with the actions necessary to improve its asset management capabilities. The primary objective of the AM strategy is to provide a way forward for asset management within the business that assists to deliver sustainable and effective services. The strategy describes the core actions required to support MCW s objectives and provides a 5 year improvement plan for asset management. The revised AM policy produced in 2010 sets the goals and approach to AM at MCW. It also identifies the strategic approach. This strategy supports the policy. The strategy is guided by the asset management framework which sets the scene for asset management within MCW. This strategy supports the concept within the asset management framework model articulating the importance and need to have sufficient processes, data, systems and people to support sound asset management practices. MCW Doc ID A MCW Asset Management Strategy Page 3 of 11

4 2. Asset Management within MCW 2.1 Past, Present and Future The following figure identifies MCW s past and present achievements and future asset management focus. Where we have come from (pre 2012) 1997 MidCoast Water formed 1998 Internal development of AIS began 2005 Asset management audit undertaken 2006 Adopted Asset Management Policy (reviewed 2010) 2006 Strategic business plan recognises asset management & Goals identified 2009 Asset Performance Standards Officer position filled 2010 Asset Management position refilled Where we are now (2012) Asset management maturity audit in progress Asset revaluation to fair value completed Asset management framework in draft form Implementing new Asset Management System Asset hierarchy and naming document and condition manual in progress Work order information needs review Asset Management Strategy adopted Where we are going ( ) AM Action plan to be implemented based on strategy outcome Formal asset condition process to be implemented Asset criticality to be developed Asset management plans to be produced Asset management system integration with other corporate systems Asset risk management framework to be implemented Maintenance planning based on asset performance and criticality MCW Doc ID A MCW Asset Management Strategy Page 4 of 11

5 2.2 Key Challenges The key challenges facing MCW: Asset Knowledge Asset Performance Information Systems Operations & Maintenance Organizational Issues Improve information flows across MCW Quantify the confidence level in data and improve the data quality Introduce seamless data management processes Improve and optimize asset performance Understand asset performance Standardize condition assessment framework Understand the impacts of risk to the business Manage infrastructure risk and condition into the planning process Align corporate systems to business needs Integrate existing systems with new AMS Implement mobility in the field Align maintenance practices with business objectives Improve and formalise proactive maintenance regimes Provide operation manuals and tools to assist maintenance personnel in the delivery of services To introduce an ongoing AM training program to support Business Objectives Initiate continuous review role by the AM Steering Committee 2.3 Current Asset Management Initiatives The work currently being undertaken to improve asset management within MCW includes: Implementation of Asset Management System; Develop intranet to provide access to documentation across the organisation; Development of Asset Condition Framework; Development of Asset Criticality Framework; Identification and condition assessment of all infrastructure; Risk Management training of operational personnel; and Enhancement and Implementation of work order management system. MCW Doc ID A MCW Asset Management Strategy Page 5 of 11

6 2.4 Required Asset Management Initiatives Based on the identification of past gaps in conjunction with the external requirements from the DLG the following strategies and initiatives have been identified as necessary. Develop an understanding of asset performance to improve asset decisions Implement criticality framework Use SCADA to improve the knowledge of asset performance Develop a process for procurement that uses historical asset performance data. Develop a process for condition assessment of assets that standardizes the evaluation. Developing end of life strategies for assets Implement new AMS Enhance and Implement work order management system Implement mobility in the field Embed Risk Management into the development of Infrastructure Justification of budget allocations Infrastructure Risk Management method Asset handover improvements Provide information and communicate AM activities across MCW To communicate asset management activities to MCW personnel To develop internal asset management skills Delivery of effective maintenance practices Align maintenance management processes across the organisation Establish a strategic view of maintenance Understand asset failures and eliminate the cause Establish and grow the AM knowledgebase Improve the knowledge of assets across the business Systems strategy to improve interrelationship between systems Document knowledge and undertake future planning MCW Doc ID A MCW Asset Management Strategy Page 6 of 11

7 3. Implementing the Asset Management Plan MCW s long term objectives for asset management are based on a three stage process being: 1. Build awareness and service capability; 2. Improved decision making capability; and 3. Service excellence and sustainability. This is illustrated in the following figure. Stage 3 Improvements Stage to 2016 Building Awareness Awareness and Service Stage to 2022 Improved decision making capability 2023 onwards Service excellence and sustainability Time Figure 2 MCW Asset management evolution This plan represents the commencement of Stage 1; Building Awareness ; it establishes the initiatives for MCW to enhance its asset management capabilities while building efficiencies into its operations. MCW commenced this process with a vision to implement new asset management processes to build the foundation for the future direction of the organisation. Stage 1 will be a period of change driven by this strategy. Through this strategy and the identified improvements, MCW will be able to demonstrate improved asset management capability through the introduction of improved processes, training and customer responsiveness. The improvement plans for each asset group indicates the areas of improvement to be addressed. Stage 2 will focus on using the asset management improvements to analyse the infrastructure and provide improved decision making capabilities. Stage 3 will deliver ongoing improvement, sustainable outcomes with respect to service delivery and affordability. The proposed activities for Stage 1 are planned in six phases, as summarised in the table on pages 8-9. MCW Doc ID A MCW Asset Management Strategy Page 7 of 11

8 Phase 1 Develop a condition framework for asset types Develop decommissioning strategies for assets Improved handover of information on asset change/replace/renew or construct new asset. Initiative 1.4 Develop a process for condition assessment of assets that standardizes the evaluation. Initiative 1.5 Developing end of life strategies for assets Initiative Implement New AMS Initiative Work Order Management System (Enhancement) Initiative Implement Mobility in the field Initiative 2.2 Infrastructure Risk Management method Initiative 2.3 Asset handover improvements Initiative 3.1 To improve MCW's knowledge and use of asset management Initiative 5.1 Improve the knowledge of asset management across the business Structure and build the AM knowledgebase and make it accessible through the intranet. Undertake Information, Knowledge and Communications audit Phase 2 Initiative 1.1 Implement criticality framework Apply criticality framework. Develop a criticality framework Implement the condition framework Initiative 1.2 Use SCADA to improve the knowledge of asset performance Develop workflow for alignment of SCADA to mydata. Initiative To develop internal asset management skills Initiative 4.1 Align maintenance management processes across the organisation. Rationalise maintenance regimes across the asset classes. Develop a reporting framework to support the review and analysis of maintenance results Provision of AM training Phase 3 Initiative 2.1 Justification of budget allocations Develop a budget evaluation framework Develop and maintain sewer asset management plans Develop and maintain water asset management plans Develop infrastructure risk assessment methodology and incorporate into mydata. Implement the asset handover process. Implement the performance framework MCW Doc ID A MCW Asset Management Strategy Page 8 of 11

9 Initiative 1.3 Develop a process for procurement that uses historical asset performance data. Develop a performance framework for asset types Initiative 4.2 Establishing a strategic view of maintenance Align maintenance to business objectives and AM Requirements Initiative 5.3 Document knowledge and undertake future planning Annual communication program Update disposal plan Phase 4 Annual Condition Reviews Annual update of the register Implement root cause failure analysis Initiative 4.3 Understand asset failures and eliminate the cause Initiative 5.2 Systems strategy to improve inter-relationship between systems Review the systems and their relationships Phase 5 Undertake internal AM audit on 2 yearly basis to review progress of the improvement plan 2 Phase 6 Update AM Strategy 4. Asset Value The total current replacement cost of MCW s assets is estimated at: $1.152 Billion. The distribution of this replacement cost is illustrated in the following chart: Figure 3: MCW Asset Portfolio Distribution MCW Doc ID A MCW Asset Management Strategy Page 9 of 11

10 5. Resourcing the AM Strategy At present, asset management within MCW is represented by the Asset Manager and three support officers. With the introduction of the AM Strategy and the volume of work to be achieved over the next 5 years it is apparent that internal/external resources will be required to implement the program. This will be coupled with current resources taking ownership for position specific tasks where required. When referencing this plan it is evident that many tasks could be achieved by current MCW personnel playing a role however there is an obvious gap in resourcing asset management process improvements and corresponding documentation. Structuring for AM based on the potential workload the following table is an indication of the funding that will be needed to support this strategy. RESOURCE COST 2013/ / / / /18 AM Strategy support AM System support AM System Integration AM System maintenance Mobility hardware / Subject to business case Software System hardware Funded by IT Total Costs ($ 000) With respect to the above table, the costs do not include any internal resources. However it does include the following: AM Strategy support The use of external consultants to assist with guidance and the completion of the larger projects as required e.g. Asset Management plans, GIS strategy etc. AM System support The use of software vendors to provide training and system advice. AM System maintenance Annual maintenance for the asset management software. Mobility hardware/software Field devices, servers etc for field based maintenance (in 2010/11 budget) System Hardware Additional hardware as required over the next five years. MCW Doc ID A MCW Asset Management Strategy Page 10 of 11

11 6. Role of the AM Steering Committee (AMSC) The implementation of AM requires commitment from all parties involved and resources to be allocated to specific functions. These resources consist of: A Steering Committee to provide direction; Coordinator to co-ordinate and monitor activities; and Team Leaders to undertake the improvement activities. The role of the Asset Management Steering Committee (AMSC) will be to monitor the implementation of the AM Strategy across MCW. Typical activities will include: Progress the AM Strategy and identify where improvement may occur; Continuous monitoring of the AM improvement program as established through the AM Strategy; Ongoing awareness building and discussions to expand AM knowledge within MCW; and Review and awareness of the development of policies, strategies, operational and maintenance plans. Consistent meetings create an environment where many key staff are able to discuss and resolve AM issues as well as plan the way forward. Implementation of the improvement program including regular progress reports, target tracking and activity monitoring should be programmed as a regular agenda item for discussion. The development of the terms of reference for the AMSC will articulate the goals and objectives of the AMSC and the governance associated with the AMSC. MCW Doc ID A MCW Asset Management Strategy Page 11 of 11

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