Enterprise Asset. Public Sector

Transcription

1 HEADING GOES HERE Enterprise Asset CALIBRI BOLD, Management for the UPPERCASE, 32pt SUB-HEADING GOES HERE CALIBRI BOLD, UPPERCASE, 20pt Public Sector PRESENTER: Ernst Name Swanepoel Goes Here 10 April 2014 Title: Organisation/Country 20 November 2012

2 What is the purpose of Asset Management?

3 TOPICS Accountability for Asset Management Physical asset management: Strategic Business Process Model Asset Management Best Practices Business and Asset Life Cycles Life Cycle Asset Management Costs Best Practices: Asset Management Maintenance Management

4 Accountability for Asset Management Who is accountable for the condition of the asset? What is our core service to our customers?

5 a) Accountability & PFMA Treasury systems requirements The effectiveness and appropriateness of systems and procedures used to manage state assets is vital Great emphasis should be placed on ensuring better accounting practices and procedures, to ensure that state assets are managed and utilized in the most effective way to achieve the required results as defined for each entity within the Public Sector

6 b) Accountability & PFMA Treasury s systems requirements Good asset management is critical in any business environment and more so in the public sector as they are vital to providing a foundation for economic activity PFMA Section 38 places the responsibility on the accounting officer for financial and risk management of the entity as well as the effective and efficient use of the resources thereof. The section further specifically tasks the accounting officer with the management, including the safeguarding and maintenance of assets and the management of liabilities.

7 c) Accountability & PFMA Asset and work enterprise-wide visibility and lifecycle management for your physical assets to decrease costs, increase asset availability and minimize downtime. Material and Procurement Leverages your corporate buying power by centralizing purchasing for multiple locations and helps you manage and optimize spare parts inventory while minimizing carrying costs and providing inventory visibility across your entire organisation

8 d) Accountability & PFMA Safety and Compliance Helps you comply with all regulatory issues in your industry while reducing non compliance penalties and improving asset utilisation and uptime. Design Engineering Utility engineers can create accurate plans for new construction, including necessary equipment and budgets in a fraction of the time

9 e) OHS Act & PFMA Adhere to all applicable legislation Implement and maintain a compliance management system for each construction and maintenance project Compliance with the requirements of the OHSACT and its Regulations Attract personal liability, penalty and criminal record

10 f) OHS Act & PFMA Until July 2003 Liability for health and safety vested with the asset owner, and Section 37 (2) agreement implemented to ensure that contractors accept joint responsibility which is project managed

11 Business Process Model 9 Critical Systems & Processes (Head Office, Regional Support Structures and Compliance) 9 IMS, BPR Integration 1 Identify Infrastructure (What do we have?) 1 Asset Condition Modelling 10 Different Asset Condition (Differentiation, Prioritisation Strategizing and Reporting) 8 System Architecture (Consolidate Systems, Strategies & Interfaces) Resourcing & Skills (Who is responsible and accountable?) 11 Reliability & Modeling (Service Delivery Structures Life Cycle Assessment) 7 PPSG Formulation (Policies, People, Processes Standards & Guidelines) 7 3 Supporting Systems (Do we have right information?) 4 Record Keeping (Do we have the right documentation?) Master Planning Complete Organisational EAM Asset Life Optimisation 12 Financial Optimisation (Service Delivery Structures Enhanced to Estate Management) 6 Business Architecture (Consolidate on Logistics For Life Cycle Management) 6 5 Maintenance & Workflow 5 Aligned Reporting (Does our reporting make business sense?) Configuration Design EAS-14/03-11

12 Asset Management Best Practices CUSTOMER CUSTOMER EXPECTATIONS EXPECTATIONS Level of Service Level of Service Cost Cost LEGISLATIVE LEGISLATIVE REQUIREMENTS REQUIREMENTS Financial Financial Environmental Environmental STRATEGIC PLANNING PROCESS STRATEGIC PLANNING PROCESS SERVICE LEVEL REVIEW PROCESS SERVICE LEVEL REVIEW PROCESS ASSET MANAGEMENT PROCESS ASSET MANAGEMENT PROCESS Strategic Planning Tactical Planning CONSIDER ASSET CONSIDER NON- CONSIDER SOLUTIONSASSET ASSET CONSIDER SOLUTIONS NON- Maintain/ SOLUTIONS renew/ upgrade/ Failure ASSET Management SOLUTIONS dispose Maintain/ of existing renew/ upgrade/ assets Insurance Failure Management Create dispose new of assets existing assets Demand Insurance Management Create new assets Demand Management IMPLEMENT ASSET IMPLEMENT ASSET MANAGEMENT SOLUTION MANAGEMENT SOLUTION Operational Planning Reference: The Total Asset Management Process International Infrastructure Management Manual, EAS-14/03-12

13 Property Management Best Practices Requirements of Property Users As defined by Business Planning Strategy User Needs Current property user requirements are delivered? Future Demand Possible future property user requirements known Demand Current Gap Future Gap Property Response Current property base Property Gap Demands on the future property base Supply Property Management strategies to close the Gaps EAS-14/03-13

14 Business and Asset Life Cycles SCM Cycle a. Project Life Cycle Business Mission IDEA CONCEPT PRASA CRES Strategy MAINTAIN HANDOVER FEASIBILITY PLANNING Divisional Objectives Project Portfolios IMPLEMENT DEVELOP Executable Programmes Projects Business Life Cycle EAS-14/03-14

15 b)scm CYCLE (Generic) (AMU and Strategic PMO) Start (Originate from AMU - PMO) Legend: AMU = Asset Management Unit Appoint SP Approve/ Reject (AMU Leadership) PN & Budget Requirements PMO (Organisational Programme Management Office) PPSG = Policies, Procedures, Standards & Guidelines (Business Case URS) Evaluate Technical Financial Screening Issue TR (Asset Management Unit) Briefing Session Close Tender (Briefing) Align Q & A s (Note the Existence of PPSG) (PM Governance) EAS-14/03-15

16 c)maintenance Cycle (Generic) 100% Rehabilitate Rehabilitate ( partial upgrade) SP SLA Critical Threshold Condition Routine work only Routine work only Maintain Routine work only Maintain Rehabilitate ( Major upgrade) Maintain & Crisis Repair Serviceability Threshold Replacement Condition X X EOL 1 EOL 2 Cost effort Time Frame X EOL 3 X EOL 4 EAS-14/03-16

17 c)maintenance Cycle (Generic) 100% Rehabilitate Rehabilitate ( partial upgrade) SP SLA Critical Threshold Condition Routine work only Routine work only Maintain Routine work only Rehabilitate ( Major upgrade) Maintain & Crisis Repair Serviceability Threshold Replacement Condition Crisis Management X X EOL 1 EOL 2 Cost effort Time Frame X EOL 3 X EOL 4 EAS-14/03-17

18 Full Life Cycle Asset Management ISO u Organisational Alignment u Business Plan Impact & Updates u Values, Policies, etc. 6. Performance Assessment and improvement u Condition Monitoring (ON LINE) u RCM (Reliability Centered) u Audits (DYNAMIC) u Compliance Evaluations u Differentiation u New technologies (Impacts) u PMO streamlining (Technology) v ISO 9000 Compliant v IIMM supported v BCI compliant v RSR Compliant 7. Management Review ACT (ISO 5500x) Master Integrated Asset Management Programme) 1. General Requirements CHECK u PRASA Business Vision u Macro-economic Impact u H/L Transformation Plan 5. Asset Management Plans (Implementation) 2. Asset Management Policy (PPSG) PLAN u Life Cycle Planning u Maintenance Policy u Tools, Facilities & Equipment u PMO and Project Support 3. Asset Management Strategy DO u Asset Investment Policy u Maintenance Management Policy u Programme Prioritisation Policy u Master (Investment) Plans Technology Plans Asset types and Life Cycles Programme Management PPSG u Maintenance (Strategic & Operational) Routine Maintenance Fault Management Replacement Management u Programme Upgrade Cycles 4. Asset Management Enablers and Project Performance u Project Governance and Structures u Configuration and documentation u Management of Change u Training, awareness & competence u Contingencies u Management Production Systems Integrated Asset Management GIS and Spatial Drawing Offices u Information Management u Risk and Legal EAS-14/03-18

19 CORPORATE AM DIRECTION v Corporate need defined v Obtain organisational commitment v Adopt corporate AM goals and objectives v Define AM roles and responsibilities v Involve key stakeholders LEGISLATIVE REQUIREMENTS CUSTOMER/STAKEHOLDER EXPECTATIONS THE AM TEAM v Oversee AM implementation v Co-ordinate AM activities v Internal Audit (Configuration Audits) AMP REVIEW & AUDIT Cyclic audit of: v AM Performance v Technical content of AMP v Compliance with legal requirements v Internal/ external audits IMPLEMENT THE AMP INFORMATION FLOWS v Information flows v Information Management SERVICE DELIVERY ISSUES v Defining core services v Contract types/ delivery mechanisms v Contract issues ASSET MANAGEMENT IMPROVEMENT PLAN v Condition Assessments v AM status reviews v The improvement program v Pilot studies THE AM PLAN PREPARE AM PLAN v Purpose (ST, MT) v Steps in preparing AM plan v Plan structure v Key Stakeholders DEVELOP LIFE CYCLE STRATEGIES v Develop strategies for each stage of asset life SERVICE LEVEL REVIEW Reference: Flow chart for developing and using Asset Management Plans (AMP) International Infrastructure Management Manual version 1 EAS-14/03-19

20 EAM: Best Practices Model Enterprise Asset Management (EAM) Total Productive Maintenance Continuous Improvement Financial Optimisation Asset Condition Management Asset Optimisation Achieved Our Challenge Stores and Procurement Predictive Maintenance Work Flow & Documentation System Operations Involvement Configuration Management Reliability Engineering CMMS (Computerised Maintenance Management System) PREVENTATIVE MAINTENANCE Technical and Interpersonal Training EAS-14/03-20

21 Life Cycle Asset Management Costs Project Life Cycle Revenue Generators Asset Design Asset Creation Asset Configuration Product Life Cycle Delivery Warrantee Period Routine Maintenance Post Warrantee Routine Maintenance Preventive Maintenance Preventive Maintenance Front Line Maintenance Front Line Maintenance First Line Maintenance Profitable Facilities Management First Line Maintenance 2 nd Line Maintenance Repairs & Refurbishment High Cost Facilities Management EAS-14/03-21

22 Life Cycle Asset Management Costs Life Cycle Cost Schematic Asset Management Costs Asset Design Life Labour rates Disposal Process Costs TOTAL CAPITAL COSTS Project Life Cycle Product Life Cycle Facilities Management Death Trap Investment Capital Cost Throughput (e.g. commercial) Operating Costs S Calculator Scrap Costs Composite Yield (Maintenance) DISPOSAL AMOUNT Investments Operations Facilities Management Availability MTTR MTBF EAS-14/03-22

23 Life Cycle Asset Management Costs The COST Model EQUIPMENT & MATERIAL FUNDS PEOPLE CAPITAL COSTS RESOURCE COSTS TRAINING COSTS RELIABILITY MAINTAINABILITY No OF FAILURES/ ANNUM DETERIORATION SKILLS Unavailability & Environmental Safety & Quality Effects, etc. BENEFITS ( Spare parts + Repair x ) Wages Cost/Failure Time Crisis Management FACILITIES & INFORMATION Maintenance Services, Tools & Depots, Energy Costs Costs of Systems & Documentation JOB COSTS CONSEQUENCE COSTS Costs of Lost Production, Safety & Quality effects Extra Capacity Costs, Refurbishment & Upgrade Lost Opportunity Costs EAS-14/03-23

24 Optimum Life Cycle Investment Costs % Total Cost Of Ownership TCO (100%) 100 Asset to be replaced Total Cost of Ownership (accumulative) (TCO) Acquisition (Project Costs) Operating & Maintenance Latest Start of Replacement Acquisition X 30% 50% 100% Years Real Time EAS-14/03-24

25 Cost Overrun Total Cost of Ownership (accumulative) (TCO) % Acquisition (Project Costs) Operating & Maintenance Operating & Maintenance Asset to be Dramatic Increase in Total Costs replaced Substantial REDUCTION of total Asset Life ORG forced into new acquisitions prematurely Major IMPACT on MTEF 30% (~40% to 50%) 100% Real Time EAS-14/03-25

26 Maintain Safety Awareness Methodology (SAM) Do Safety Awareness Field Education (SAFE) Maintain Organisation Structure Develop Business Plan Develop People Develop Production Plan Plan Infrastructure Determine Develop Develop Activate The maintenance system Equipment Maintenance Medium-term Maintenance Importance Maintain Infrastructure Strategy Plan Work Provide Resources Do Maintenance Work Produce Improvement Administration Work management cycle Infrastructure management cycle Asset management cycle Measure Safety & Improve Measure Organisation HUM & improve Measure Performance & Improve Measure Infrastructure & Improve Measure Work & Improve Organisation management cycle Safety management cycle The desired asset management strategy EAS-14/03-26

27 Crisis Management will get us stuck here Provide Resources Determine Equipment Importance Develop Maintenance Strategy Develop Medium-term Plan Activate Maintenance Work Do Maintenance Work Produce Improvement Administration Work management cycle Measure Work & Improve Asset management cycle Measure Performance & Improve (manual measurements) EAS-14/03-27

28 Maintenance Focus: AMU Maintenance VISION VALUE FOR MONEY TRAINING VISION MAXIMUM UTILISATION OF RESOURCES COMMUNICATION LEADERSHIP AND INVOLVEMENT EAS-14/03-28

29 Maintenance Focus: AMU Maintenance Governance ORGANISATION POLICIES ORGANISATION SYSTEMS ACTIVITIES DEVELOPMENT PEOPLE PLANNING CONTRACTING CONTROL COMPUTER SYSTEM SOLUTIONS AUDITS ASSET MANAGEMENT SUPPORT EAS-14/03-29

30 - Asset Management (Evolution) Planned & Predictable Can you plan a disaster? (Fix it while it breaks!!) Working smarter, prevent the asset to fail! Circumstantial Management Asset Condition based Management Wait until Disaster Strikes, then go out and fix it Working harder, distribute maintenance teams, fix it in a workshop Fix-it Mentality EAS-14/03-30

31 - Asset Management (Evolution) Planned & Predictable SAN 55 ISO ( ) SUSTAINABLE GROWTH Life Cycle Profit Circumstantial Management Maintenance Integration Continuous Improvement Availability Asset Condition Management Asset Condition based Management CURRENT PREDICAMENT Fire Fighting Maintenance Ad hoc Maintenance Preventive Maintenance Fix-it Mentality This is where we come from Apply Systems Business Approach TURN-AROUND THRUST Asset Condition Monitoring EAS-14/03-31

32 CONCLUSION The management of physical assets is the cornerstone of our Economy Asset Management Practitioners should take the lead in the management of assets towards maturity. Programme and Project Management are the most critical focus areas for the restructuring of our assets and the creation of jobs for the years to come.

33 THANK YOU!!! YOUR TIME HAS RUN OUT!!!!! EAS-14/03-33