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  • SIMPLE - Vision
    Business drivers or goals of the organization Life cycle asset management functions Individual actions associated with them and how these key linkages impact on the business s value chain All these issues should be openly discussed and a sound understanding be developed across the entire organization to clearly show How this relationship works The method in which BAP in life cycle asset management will support business drivers value chain objectives and goals Supporting AM Policies A paradigm shift towards a more advanced asset management approach needs to be introduced and retained in the long term Adopting advanced life cycle asset management policies within an organization s governance structure can establish and capture competitive sustainability This approach may result in some cultural change in the workplace and the effects of this need consideration For best practice competent managers control activities via policies and standards within a quality assurance mechanism Soundly based life cycle asset management policies could significantly assist in the long term sustainability of vital infrastructure service delivery for the community Asset Management Quality Framework Quality frameworks and guidelines establish the method in which an agency proposes to complete and monitor its asset management activities The Quality Framework should be included in a project charter and signed off by all parties who are implementing the asset management program This could include Philosophy logic and policies Life cycle asset management processes practices and strategies Reporting requirements Performance monitoring Driving continuous improvement Organizational Linkages Best Appropriate Practice in asset management means there should be links between an organization s business goals and its investments and ultimately to action plans for programs These links are shown in the following diagram Service Levels Future levels of service are a major factor contributing to strategic planning for assets Regulatory factors impacting on service levels include Environmental discharge controls Public health Building regulation changes Occupational health and safety standards Water resource restrictions Non regulatory factors include Public information Disruption of service Emergency maintenance response times Life Cycle Asset Management Life cycle asset management involves a complex set of quality elements which are described in Level 3 of SIMPLE The key quality elements include Processes and Practices of the Asset Portfolio Life Cycle Asset Information Support Systems Data and Knowledge Data Availability Quality Service Delivery Internal Resouces Contracted Service Provision Organizational Issues People Issues Total Asset Management Plans It is vital for all asset owners especially owners with large complex portfolios to be able to paint a clear picture of their business performance They need to be able to identify what they can produce and at what cost The organizations that can do this are the ones that have developed BAP in all of the key quality elements They have reached a level of sophistication where they know how the complexities of asset management are matched together to form high quality outputs against triple bottom line reporting of environmental social and economic impacts This life cycle asset management planning approach is shown in the following figure This

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  • SIMPLE - Benefits
    failure reduces the agency s risk profile The benefits of productivity and effectiveness improvements can be realized immediately These benefits can be highly significant as they allow greater value to be obtained from existing budgets They can represent efficiency productivity gains of up to 20 on the existing operating and maintenance budgets and can be realized within the first few months of implementing a new asset management program Overall the benefits of advanced asset management fall into two major areas Better focusing of existing budgets and long term cost reduction opportunities around 80 Improved system and organizational performance that deliver improved service delivery for equivalent expenditures around 20 Other lesser benefits come from operating an advanced asset management system They include capacity and reliability modelling or computerized network analysis for facilities The following two diagrams provide a breakdown of these estimated benefits Potential Internal benefits for agency Other internal benefits may include Knowledge capture and training of new employees Establishing a collaborative culture and continuous improvement Potential External benefits for agency Other external benefits may include Better customer service Better public acceptance of desired changes Benefits for Industry An advanced asset management system that is fully implemented offers the following benefits Extending the life of existing assets cost effectively Optimal maintenance and operational practices Mitigation of any causes of unwarranted decay failure Intervene with cost effective rehabilitation strategies Identifying and understanding the whole business risk exposure Reducing business risk exposure e g operational risks unexpected asset failures and associated emergency response plans This can involve operational and long term strategic planning risks Life cycle investment risks e g rehabilitating or refurbishing assets thereby extending life at a lower cost before they need total replacement Natural events such as earthquakes cyclones floods and associated emergency response plans Vandalism or terrorism risks Optimizing maintenance planning and practices Using Reliability Centered Maintenance RCM or Failure Modes Events Criticality Analysis FMECA techniques to develop logical and justified maintenance plans which will Improve system reliability Mean Time Between Failure MTBF Reduce the Mean Time to Repair MTTR or failure response times Assessing and optimizing back up or redundancy assets to economically justifiable levels Balancing capital and maintenance by making due allowances for the opportunity costs of capital and recognizing the spent costs or Written Down Replacement Value WDRV of the existing assets Improving the analysis on asset investments Capital Investment Validation techniques Constructing or rehabilitating assets at the right time Completing the most appropriate option or solution by Not overbuilding or gold plating Only including warranted or economically justified redundancy or back up Considering non asset solutions Choosing what is to be done today with confidence that it will meet the future strategic needs or strategies for the parent and grandparent assets Understanding the full life cycle costs and not just considering capital then choosing the most appropriate combination to suit the organization Taking into account likely or possible changes in new technology and their associated benefits e g predictive maintenance tools etc Improving Operational

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  • SIMPLE - The Seven Quality Elements
    to Asset Management Effective Implementation Asset Management for Small Utilities Interactive Training Practitioner Contents GASB 34 The 10 Steps to Asset Management Asset Management Guidelines Develop an Improvement Plan Reports Case Studies SAM Practitioner Tools Contents What is SIMPLE Quality Framework The Seven Quality Elements There are seven major quality framework elements Using them to drive improvements will result in a sustainable stewardship of the asset portfolio for future generations These elements are Life Cycle Process and Practices Asset Information Support Systems Data and Knowledge Service Delivery Organizational Issues People Issues Total Asset Management Plans Detailed information on the quality elements is found in the Asset Management Guidelines area of Levels 2 and 3 in SIMPLE The seven quality elements are broken down into 23 secondary elements Processes and Practices of the Asset Portfolio Life Cycle Demand Analysis Knowledge of Assets Asset Accounting and Cost Costing Strategic Planning Life Cycle Capital Expenditure Validation and Approval Process Business Risk Assessment and Management Asset Creation Acquisition Process Asset Rationalization Disposal Asset Operations Asset Maintenance Work Resource Management Review Audit Continuous Improvement Processes Asset Information Support Systems Primary Applications Secondary Applications Tertiary Life Cycle Applications General Overall Information System Issues Data and Knowledge

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  • SIMPLE - Achieving Best Appropriate Practice
    steps in any order providing the activities are programmed in the asset management planning process Practices and Processes Asset management is built around a modest number of core building block techniques or practices and processes These include Asset registry hierarchies and data standards Levels of service condition and residual life assessments Valuation and life cycle costing Risk consequence determination Optimal renewal decision making Business risk exposure Confidence level metrics Whole portfolio financial planning Each of these can be deployed at different levels of sophistication The organization needs to determine what steps are required to provide the improvements and undertake only those that are warranted now The Principles of Sustainable Best Practice Asset Management An organization that is delivering best appropriate practice in asset management should be able to make the following claims as these are the principles of sustainable asset management It knows what assets it has responsibility or legal liability for It records these assets in a register down to a maintenance managed item MMI level It monitors the condition performance utilization and costs of assets down to the MMI component level as justified It aggregates this data to give outputs of cost and performance It stores data and knowledge about its assets in suitable corporate information systems that support asset management responsibilities It understands and records the current levels of service in terms of quantity and quality of service including Condition Function size type fit for use Regulatory requirements Reliability Repair or outage response times It thoroughly understands the critical assets necessary for sustained service levels and either monitors its assets to ensure they don t fail or mitigates the failure It understands the likely future levels of service required including regulatory requirements such as Environmental discharge standards Occupational health and safety regulations Building regulations It understands customers non regulatory expectations such as Appearance of facilities Number of complaints Response times to complaints It understands the full economic cost and minimum economic cost of service delivery It understands the long term capital and recurrent funding needs 20 30 year to meet these regulatory and customer expectations It has pricing and funding strategies that match the needs of the business and ensure sustainability It reports annually in triple bottom line terms that is economic environmental and social It understands the real growth of its business and the way in which the demands for service could alter in the future including changes in Population both users and community Unit demand for services Demographics of customers and users It monitors and reports on the condition performance and functionality of assets against prescribed service levels and regulatory requirements It links the asset condition index with service levels at a cost that its customers are willing to pay If the costs are too high for customers the organization engages in a stakeholder consultation program to identify trade offs and strategies to better meet customer expectations and service constraints It is able to understand the future level of service options available and their associated

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  • SIMPLE - A Gap Tool
    can close the gap using the SAM GAP tool which allows us to Show what world s best practice is by demonstrating examples and case studies Agree with our current level or practice See how other similar businesses perform and rate ourselves against them Decide on a best appropriate practice BAP level that suits our organization and forms our target Identify all the improvement tasks that will need to be completed We need to understand the benefits and costs that are associated with closing the gap The business case module relates the gap to benefits achieved by other organizations in closing this gap It shows the optimal and minimal benefits achieved Once we know the benefits and the cost we can really identify the quick wins the quick starts those tasks that are needed to be completed early but may not represent the best benefits costs and develop the full long term roadmap which is our AM improvement plan Finally we can develop an Effective Implementation Plan This covers all the people and organizational issues and the critical change management items that are essential to a fully successful AM improvement program But we must remember it is the total assembly

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  • SIMPLE - Appropriate Business Confidence Level
    is different and every organization faces different issues so the solution needs to be tailored to these circumstances rather than simply adopting a generic world s best practice TEAMQF addresses this need by enabling each agency to clearly identify what is best appropriate practice for their agency and their assets at a particular point in time To manage assets efficiently and effectively organizations need to Apply best appropriate life cycle

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  • SIMPLE - Life Cycle Processes
    Utilities Interactive Training Practitioner Contents GASB 34 The 10 Steps to Asset Management Asset Management Guidelines Develop an Improvement Plan Reports Case Studies SAM Practitioner Tools Contents What is SIMPLE Quality Framework Life Cycle Processes It is vital for all owners of assets and more particularly to those owners with large complex portfolios to be able to paint a clear picture of their business performance They need to be able to identify what they can produce and at what cost This approach requires the consideration of the entire life cycle process From the initial concept or identification of a demand for service through the creation phase into operations maintenance and renewal and through to disposal all elements need to be considered This is relatively easy for a single asset but when organizations own a mature network or portfolio that consists of hundreds of thousands of individual assets the task becomes complicated It is therefore important to understand where assets are in their life cycle and what we can do about their cost and their performances Different types of works will provide different levels of service or benefits to the organization Replacement will bring back full performance whereas some renewal options

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  • SIMPLE - Quality Framework Value Chain
    type of business and the part that assets play in the service delivery assets can play a significant through to minor role in the overall business performance or service delivery The following table shows the part that assets can play in the annualized cost of various different service providers The table is an example each organization within a service type may value its assets differently and each will need to develop its own value chain Service Type Asset Management Administration Water 90 10 Wastewater 94 6 Drainage 92 8 Irrigation 88 12 Electricity 86 14 Gas 92 8 Telecoms 55 45 Ports 42 58 We define the value chain as The value that each life cycle asset management activity or tertiary quality element brings to the service delivery of the organisation In other words this means coming to the right decision at the right time by following the right processes and using accurate data and knowledge An organization needs to fully understand where It is consuming its current resources Where its money will need to be spent Where its greatest business risks are By developing advanced asset management processes and practices the organization can answer these questions By using the

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