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  • SIMPLE - Critical Success Factors
    to move from a design construct run and monitor management regime to one that also focuses on long term planning for renewal replacement and disposal of infrastructure assets The WERF toolset for asset management implementation includes SAM Gap which assesses seven 7 primary elements of asset management in a first step to identifying the magnitude of the change the organization will need to move through to adapt towards an asset

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  • SIMPLE - Options for Getting Started
    Champions Champions are required at all levels of the utility Continuous Improvement Ways to measure progress realistic plan for continuous improvement Background Discussion It is not unusual for an AM champion to emerge through trial and error from within plant mid level management staff Often the champion achieves efficiency gains and performance improvements through the application of such practices as RCM Reliability Centered Maintenance PdM Predictive Maintenance to the operational environment or service level and risk based approaches to capital renewal planning If benefits are achieved at the treatment plant level for example then it is likely that other parts of the organization will derive benefits from the same approach It is possible to transfer the associated strategies and procedures to other plants or maintenance activities for the greater benefit of the organization without a formal corporate policy on asset management or executive level commitment to asset management The extent to which this can occur depends on the organizational culture and the level of communication and information sharing between operations and maintenance staff supervisors and managing engineers across the organization However maintenance operations and engineering are not always the areas where the organization can achieve the greatest benefit from asset management implementation In many cases the largest benefits can be realized at the Board Commission and executive management level where the enabling decisions are made regarding revenue funding strategies capital investment customer and stakeholder relationship management as well as project delivery and service strategies e g public private operations and maintenance contracts While implementation of asset management often starts in the engineering part of a utility it usually spreads to other parts of an organization as result of a need to keep pace with investment in the infrastructure through the peaks in the forecast replacement renewal profile humps in the Nessie curve A corporate approach to asset management implementation results in a corporate level understanding of renewal liabilities and risk exposure and enables the organization to engage with customers and stakeholders to determine appropriate service levels and revenue and funding strategies to minimize rate shock in order to maintain the value or integrity of infrastructure assets for future generations A desirable goal for any organization is to exercise good engineering as well as achieve a strong corporate understanding of infrastructure funding needs and performance The key question when selecting an appropriate asset management implementation pathway is Where will the greatest benefits be achieved A holistic view of the organization is generally necessary in order to make the right judgments and select the best approach For example in organizations where a specific major process for example a particular aeration basin or a specific type of asset for example unlined cast iron pipe poses a significant challenge Pathway 1 Problem Asset or System Approach may well be the appropriate approach Pathway 1 begins by focusing a specific set asset management practices and techniques for example condition assessment failure mode analysis or residual life analysis on a selected asset class of assets or

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  • SIMPLE - The Seven Pathways
    of a network or system 2 CIP Validation Applies asset management principles to investment decision making and identifies projects that could be deferred removed or re evaluated for inclusion in the Capital Improvement Program CIP Savings include debt service on deferred and abandoned projects improved use of capital and operations and maintenance costs Good for organizations that are becoming overwhelmed by growth and renewal capital projects with high debt equity ratios and increasingly less able to raise finance Provides a sanity check on the size and content of the CIP through the application of a consistent structured approach to evaluating projects using confidence level ratings assessments risk exposure scores and lifecycle cost analysis Demonstrates the business case for applying asset management principles to the capital investment planning process 3 Existing AM Processes Practices Pilot study to assess management principles in known process problem areas risk assessment optimized maintenance planning capital investment validation automation of operations activities data management optimized renewal decision making and condition assessment Good for organizations with robust processes and an understanding of where investment in change can deliver the greatest benefits 4 Full Needs Analysis Good for establishing a clear corporate roadmap and business case Assessment of current performance against best practice processes practices organization people issues information systems data and knowledge May also involve a diagnostic on the operations and maintenance functions Identification of improvement projects and development of business cases Development of an implementation schedule program 5 Information Systems Good for organizations considering implementing an Enterprise Resource Planning System an Enterprise Asset Management System or upgrading a maintenance management system Around 70 of system implementations fail because of inadequate change management and matching of the system configuration to the process support or functionality requirements of the organization Sets the foundation data and systems functionality in

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  • SIMPLE - Choosing a Pathway - Selection Criteria
    Plan Reports Case Studies SAM Practitioner Tools Contents Pathways to Asset Management Alternative Routes to Implementation Choosing a Pathway Selection Criteria There are several resources to assist in deciding which is the most appropriate pathway for an organisation at a particular point in time The ones described in this section include a checklist of organizational factors a table of asset cost and performance factors that characterize the asset management competency

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  • SIMPLE - Choosing a Pathway - Examples
    management plans will generate new management information and datasets that will assist executive management decision making The operations maintenance and engineering group will be able to demonstrate funding needs packaged in the context of investment risk timing and service levels This could be particularly helpful in communicating the organization s needs in terms of future investments and changes in processes and procedures to prevent future SSO violations for example This may create an impetus for change in other areas of the organization to continually improve the generation of sufficient income and funding options asset performance and lifecycle costs Organization A could couple this effort with Pathway 6 Modified Gap Analysis limited to the assets under consideration The Modified Gap Analysis would identify the business case for what the engineering and operations group might need from other parts of the organization in terms of support such as changes to the Capital Improvement Program selection process information systems functionality and managerial accounting enhancements Example 2 Checklist Factors Organization B serves a population of over 500 000 persons and the average age of the infrastructure is 50 years An asset management implementation initiative already has full commitment from executive management Assets are in a borderline state of repair and the financial situation is favorable with respect to bond rating and scope for modest rate increase There is limited use of AM processes for strategic planning and planned preventive maintenance Some AM data is collected and quality assured Response times and service standards are below industry benchmarks CMMS Finance GIS systems are functional but not fully utilized to support AM The organization is customer focused with distributed accountabilities for cost and service level performance Staff and financial resources are available for AM implementation No permit violations have occurred and energy and Green House Gas GHG emissions are within normal benchmarks Initial discussions with engineering and operations staff indicate skepticism and a lack of change readiness Pathway Selection The fact that the infrastructure is in a borderline state of repair and the organization has not taken advantage of a healthy financial situation that could have enabled additional investment coupled with the lack of strategic planning and the reactive maintenance environment highlights a number of issues Current management processes and practices are unlikely to be adequate for managing increasing probabilities of failure and risk exposure the organization is probably already operating under high levels of risk and has likely been very fortunate to date with respect to violations Significant change management initiatives will be required to bring the organization to a common starting point for moving forward with widespread asset management business transformation and Information systems are in place but some re configuration and change management work will be required to fully utilize their capabilities within a proactive maintenance and asset management environment Organization B is a candidate for Pathway 4 Full Needs Analysis Pathway 6 Modified Gap Analysis and Pathway 7 Step By Step AM Plan Approach and Pathway 1 Problem Asset or System Approach

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  • SIMPLE - Alternative Routes to Implementation
    Getting Started Pathways to Asset Management Critical Success Factors Alternative Routes to Implementation Options for Getting Started The Seven Pathways Choosing a Pathway Selection Criteria Choosing a Pathway Examples 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 Pathways to Asset Management Alternative Routes to Implementation

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  • SIMPLE - Basic Principles
    Phases Basic Principles The basic requirement for all asset management programs is that they can be effectively implemented Effective implementation means introducing the systems in the most efficient and effective way Corporate business objectives are normally the drivers for the implementation of an asset management program Before the desired outputs can be produced inputs are needed and the systems to support the implementation must be in place The program must

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  • SIMPLE - Outputs Required
    management program must ultimately satisfy the corporate business objectives of the organization to enhance its competitive advantage As the business environment is always changing the relative importance of each of the business drivers should be weighted An example of the key business drivers with the relative weightings and the outcome necessary is shown below Key Business Drivers Outcomes Necessary Business Environment Weighting Improved operational efficiency and effectiveness Spending priorities established Optimized maintenance System modeling Automation Business risk reduction Cost minimization Current utilization Available capacity 60 Improved levels of service to customers System performance Satisfied customers Satisfied regulator 20 Achieve optimum life from existing assets Deferred capital Lowest optimal blend of capital and maintenance 20 It is also necessary to identify the levels of outputs and their appropriate timeframe The table below summarizes the key elements in a typical improvement program AM Quality Level Sophistication Current Year 1 Year 2 Year 3 Year 4 Required Inputs Asset Register Hierarchical Level Complete 80 85 90 95 100 Physical Characteristics Attributes 80 85 90 95 100 Effective Lives adopting condition based depreciation Estimated 20 CBD 35 CBD 45 CBD 55 CBD Condition Assessments simple 90 100 90 85 70 Condition Assessments detailed 10

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