Benchmarking AM Business Processes to focus organizational resources Craig Edlund, Director of Asset Management, MCES Scott Haskins, Sr VP, Director

Transcription

1 Benchmarking AM Business Processes to focus organizational resources Craig Edlund, Director of Asset Management, MCES Scott Haskins, Sr VP, Director of Strategic Consulting, Jacobs CH2M

2 Craig Edlund Director of Asset Management Metropolitan Council Environmental Services Scott Haskins Sr VP and Director of Strategic Consulting Jacobs CH2M

3 What will we cover today: About Metropolitan Council Environmental Services Drivers for Benchmarking Asset Management Customer Value Project MCES Benchmarking Exercise Implementing Recommended Initiatives Benchmarking wins for MCES

4 Key Concepts of Benchmarking Gain understanding of business process maturity Provides a roadmap for a World Class Utility Avenue for continuous improvement via practices, metrics and safety performance Application of improved practices can lead to Capex and Opex savings

5 Metropolitan Council Environmental Services MCES by the numbers 7 Wastewater treatment plants 1 Water Reclamation Plant (recharge) 370 MGD capacity (250mgd average) 109 communities/2.7 million residents 850 industrial customers Over 30K assets throughout the system* 600 miles of pipes (up to 14 dia) 62 lift stations 206 metering sites $7.4 billion in infrastructure $140 million in capital renewal annually

6 Metropolitan Council Environmental Services Strategic Plan Goal: Improve Asset Management practices to increase our value to the region and meet our Customer Levels of Service

7 Drivers to improve MCES AM practices Meet Customer LOS at lowest lifecycle cost. Higher Rate increases in recent budget cycles Uncertain asset data in system Optimize system reliability Aging infrastructure Asset Lifecycle Management Changing regulatory expectations Workforce knowledge transfer Operational certainty

8 Asset Management Customer Value Project World s largest process benchmarking project mapping to ISO and EUM An asset/utility management maturity assessment Understanding of leading-edge practice across the lifecycle Peer networks with other organizations internationally

9 Asset Management Customer Value Project Global Participation Toho Portland Water DC Water MCES Albuquerque Rancho (CA) Montgomery Cnty (OH) Region of Peel Region of York LA Sanitation Dist Vancouver (WA)

10 Asset Management Customer Value Project Value proposition for Utilities Demonstrate to customers and regulators that businesses are effective and efficient. Continuous improvement via practices, metrics and safety performance; target-setting, improvement initiatives and linkages to organizational strategic plans. Peer collaboration and learning, particularly leading practices and consortium benchmarking; networking with leading practitioners nationally and internationally. Integration with major industry programs such as ISO and other standards. Achieving cost savings: application of improved practices can lead organizations to between 10% and 30 % Capex and Opex savings.

11 Asset Management Customer Value Project Assessment Structure Examines capability and execution of processes across 7 key functional areas

12 Asset Management Customer Value Project Rigorous hierarchy of questions and scoring

13 AMCV Leading Practice Workshop ActewAGL (Australia): Automating asset-specific plans and renewals timing Albuquerque Bernalillo County Water Utility Authority: Customer Engagement; Managing performance City of Vancouver, Washington: Operations and maintenance contracting; Using business case evaluations DC Water and Sewer Authority: Innovation program; Linking strategic planning to process improvement Los Angeles Sanitation: CIP development; One Water; Resource recovery management Metropolitan Council Environmental Services: Employee engagement; Integrated water planning Portland Water Bureau: Collaboration conduit; Managing the risk of asset failure Rancho California Water District: MyWaterTracker; Asset Management Plan (AMP) framework and AMP groundwater production wells Region of Peel: Drinking water quality management system; Policies, risk, strategy, strategic asset management plans Sydney Water: Operational optimization using BI and data analytics Toho Water Authority: Asset acquisition, testing and acceptance processes; Workforce management, processes and procedures Yarra Valley Water: Determination of acceptable levels of service to customers

14 AMCV Assessment at MCES Cross functional approach, a platform for engagement By Key area (7 teams) From Executive to Front line Open Dialogue by all Engaged all participants Buy in top down & bottom up Build relationships for future teams

15 Assessment Scoring

16 Recommended Initiatives

17 Initiatives mapped to AM Roadmap

18 Initiatives refining Asset Management System

19 Initiatives improving Capital Delivery Process

20 Cross Functional Benchmarking Wins Clarity across the organization of business drivers and needs AM Plan line of sight and alignment with Mission, Vision and Values Cross functional collaboration embedding into our culture Implementing AM initiatives allowed increased budget planning resulting in <4% rate increases over next 5 years. Accurate asset lifecycle date = accurate capital renewal planning

21 Key Concepts of Benchmarking Gain understanding of business process maturity Provides a roadmap for a World Class Utility Avenue for continuous improvement via practices, metrics and safety performance Application of improved practices can lead to Capex and Opex savings

22 Questions?

23 Craig Edlund Metropolitan Council Environmental Services Scott Haskins Jacobs CH2M

24 April 29 May 2, 2018 Baltimore Marriott Waterfront