Attachment 20.40b SA Power Networks: IT Enterprise Asset Management Business Case

Transcription

1 Attachment 20.40b SA Pwer Netwrks: IT Enterprise Asset Management Business Case

2 Business Case Enterprise Asset Management - Categry Analysis RIN Executive Summary Business Case - addendum Enterprise Asset Management - Categry Analysis RIN Prject Ref Number : BC03 SA Pwer Netwrks Page 1 f 38

3 Business Case Enterprise Asset Management - Categry Analysis RIN Executive Summary Table f Cntents 1. Executive Summary Purpse Backgrund Assumptins / Cnstraints AER Categry Analysis Summary Overview High Level Impact Assessment Expenditure Summary & Recnciliatin Expenditure Categries Age Prfile Business Case Current Recmmendatin Overview f Current Recmmendatin AER Categry Analysis Implicatins Key Prerequisite Business Case Initiatives Key Enabling Business Case Initiatives Key Requirements and alignment with Business Cases Optin 2 Revisited Scpe Scpe Inclusins Scpe Exclusins Schedule AER Categry Analysis related capabilities Delivery and Change Management Csts Delivery Cst Assumptins Change Management Cst Assumptins Opex Step Change Opex Step Change Cst Assumptins Timescale Majr Business Risks Cst Cmparisn Dcument Authrisatin and Histry References Acrnyms and Abbreviatins Page 2 f 38

4 Business Case Enterprise Asset Management - Categry Analysis RIN Executive Summary 1. Executive Summary This addendum revisits the Business Case BC03 Enterprise Asset Management and cnsiders the impact related t the AER Categry Analysis Regulatry Infrmatin Ntice (RIN). The business case was written befre the Categry Analysis RIN was released and therefre needed t be revisited t assess the impact t the Enterprise Asset Management prject. The AER Categry Analysis data template (Cpy f AER Categry Analysis data templates fr distributin netwrk service prviders unprtected.xls) cntains a level f required infrmatin that is nt efficiently btained frm current SA Pwer Netwrks infrmatin systems and therefre must be btained by inefficient and tedius manual prcesses. The recmmended ptin (Optin 2) f the Business Case has been revisited in light f the AER requirements and the fllwing timescale and cst estimates reflect that review. Please nte the timescale and cst belw reflect the full cst f Optin 2 plus the extra effrt required t meet the requirements f the AER Categry Analysis RIN. Timescale revised Optin 2 Initiative H H H H H H H H H H H H H H EAM Blueprint Asset Data Dcument Management - EAM Mbility - EAM Cnditin Data Analytics Prcesses Ge enablement Legend: Fcussed n EAM and AER requirements fcussed n EAM The schedule abve indicates that the fundatinal AER Categry Analysis related capabilities shuld be in place by the end f the calendar year 2016, assuming the necessary pre-requisites initiatives are delivered n time. Initiative Deliverables / Outcmes Timeframe EAM Blueprint Blueprint design t include the applicable requirements f the AER Categry Analysis RIN. Blueprint design extended caters fr the EAM bjectives f the rganisatin. 01/07/2014 t 31/12/2014 Asset Data Phase 1 Definitin and implementatin f the data structures and prcesses required t supprt the requirements f the AER Categry Analysis RIN. 01/07/2015 t 31/12/2016 Dcument The capability t integrate dcuments with the technical bjects that represent the assets and wrk. Page 3 f 38 01/07/2015

5 Business Case Enterprise Asset Management - Categry Analysis RIN Executive Summary Initiative Deliverables / Outcmes Timeframe Management EAM t 30/12/2015 Mbility EAM The capability t enable asset data capture in the field thrugh asset inspectin and ther wrk prcesses. 01/01/2016 t 31/12/2016 Analytics Phase 1 The capability t execute Business Intelligence reprts that supprt the requirements f the AER Categry Analysis RIN. 01/01/2016 t 31/12/2016 Prcesses Phase 1 Prcesses fr all applicable wrk types have been mdified t supprt the requirements f the AER Categry Analysis RIN. 01/07/2015 t 31/12/2016 Cst Estimates revised Optin 2 ($M Real 2013/14) Capital Delivery and Financial Opex Step Change Management Ttal ($M) Year Change IT Nn-IT 2014/ / / / / / / / / / / / / Ttal Csts The cst estimates fr the Regulatry Cntrl Perid are: Delivery and Change Management Capex $29,357K Opex Step Change Opex $2,280K $31,637K Page 4 f 38

6 Business Case Enterprise Asset Management - Categry Analysis RIN Executive Summary Investment Appraisal Optin Measure Type Value Revised Optin 2 NPV (Net Present Value) -$8,379,299 PI (Prfitability Index) 0.74 Majr Business Risks The fllwing risks have been identified with prceeding with this ptin: 1. Insufficient senir management supprt t the rll ut due t under-estimating the effrt required t make it a success. 2. Lack f understanding and prvisin fr change management. 3. Insufficient training fr all staff assciated with the impact f new systems and prcesses, including new asset management strategies and standards. 4. Nt implementing prcess change and system change simultaneusly. 5. Lack f understanding f the initiatives in ther business cases that impact n the success acrss the rganisatin. SA Pwer Netwrks is cnfident that these risks can be managed t ensure the successful implementatin f the initiatives utlined in this Business Case. Page 5 f 38

7 Business Case Enterprise Asset Management - Categry Analysis RIN Purpse 2. Purpse The purpse f this addendum is t prvide a high level assessment f the impact upn the capabilities included within Optin 2 f the Business Case BC03 Enterprise Asset Management due t the AERs Categry Analysis RIN. 2.1 Backgrund The Business Case BC03 Enterprise Asset Management recmmends the fllwing ptin: Optin 2 - A Balanced Apprach twards Enterprise Asset Management This ptin prpses t enhance and upgrade SA Pwer Netwrks capabilities (prcess, peple, systems and data) in rder t mve away frm a siled and nn-integrated apprach twards an Enterprise apprach leveraging the capability f the existing SAP ERP system. As this represents a significant transfrmatinal change, the rate f change acrss business functins, capabilities and asset types will be balanced by an assessment f the realistic capacity f the business t absrb the rate f change. Enterprise Asset Management (EAM) can be described as the whle f life management f an rganisatin s physical asset base and the fundatin piece t the adptin f an EAM apprach is the reliable and efficient access t unified and accurate data. This in turn allws fr better business prcess integratin, timely decisin making and streamlined prcess executin. SA Pwer Netwrks currently has asset management related data stred in multiple, discnnected systems and databases and has a heavy reliance n MS Excel t cnslidate and bring data tgether. T maximise the benefits f adpting an EAM apprach requires an integrated landscape f crprate systems, each with asset centric data elements that traditinally have perated as largely stand-alne systems. It is imprtant t nte that the Business Case BC03 Enterprise Asset Management althugh titled as EAM des nt in itself prvide fr all the capability required in the adptin f an EAM apprach. EAM shuld nt be cnfused with the tls that enable it. Asset Management is a set f prcesses that manage assets thrugh their lifecycle. These prcesses must be implemented in a pragmatic way, and t be effective and t truly embed the changes that are significant in terms f culture and systems, SA Pwer Netwrks needs t take a cntinuus imprvement apprach. Enterprise Asset Management cmprises many functinal capabilities that have been identified and are cntained within the business cases utlined in the figure belw. Page 6 f 38

8 Business Case Enterprise Asset Management - Categry Analysis RIN Purpse BC01 CIS and CRM The current CIS O/V system is interfaced with SAP with respect t the Custmer Cnnectin activity with Wrk Orders being duplicated in bth systems. The current SAP functinality relies upn SAP standard cnfiguratin as well as a level f enhancements that will cntinue t be required unless SA Pwer Netwrks adpts the available Utilities specific functinality available in the industry specific slutin. The level f integratin regarding the Custmer data is rudimentary at current and requires an uplift including custmer, cnnectin pint, asset and wrk. BC02a Custmer Facing Initiatives Custmer facing initiatives such as Pwer at My Place and the Single Light Out Prcess will be imprved with the greater level f custmer & asset data integratin, ffering even greater pprtunities in the future. The REX applicatin used fr Custmer Cnnectins will als require mdificatin dependent upn the selectin f CIS and the resulting trigger fr wrk in SAP. BC04 Financial Management The definitin f an asset fr Asset Management and Financial purpses needs t be defined. This level is unlikely t be the same, hwever there des need t be a systematic linkage between the physical asset used fr asset management purpses and the financial asset used fr depreciatin purpses. There needs t be an understanding f the financial requirements fr Regulatry and Operatinal Reprting and hw these attributes are captured thrughut the business prcesses, and this must be built int an ver-arching design acrss the landscape. Page 7 f 38

9 Business Case Enterprise Asset Management - Categry Analysis RIN Purpse BC05a Supply Chain and Prcurement With an imprved maintenance prgram a maintenance plan is established fr each asset frm the beginning and resurce requirements defined fr maintenance activities via the use f cmpatible units well in advance. This in turn allws fr a greater degree f inventry planning and shuld be built int the Supply Chain and Prcurement prcesses. The MRP prcesses may be able t be executed in a mre scientific manner. With an accurate understanding f materials cnsumed n unplanned wrk the histrical cnsumptin patterns will enable greater frecasting capability. The material master fr majr equipment items shuld include asset related attributes that are cllected when defined by the Netwrk Standards grup. This data may then be systematically passed n t the equipment master fr asset management (SAP) and peratinal purpses (ADMS) BC05b Prject, Prgram and Prtfli Management In rder fr the maintenance prgram t be managed it is imperative that the business may visually manage the prgram and quickly understand the assciated risk prfiles fr wrk. This implies and effective integratin f maintenance tasks int the prgram & prtfli at a level that makes sense. This business case als includes uplift in the capacity planning, scheduling and dispatch functins. These capabilities are a key cmpnent f an EAM landscape and drive significant benefits in utilisatin. BC09 SAP Fundatins This business case includes an upgrade t the hardware and an upgrade t the User Interface. It is imperative fr user acceptance that the newer technlgies are available in rder t imprve the user experience. BC10 Integrated Design & Estimatin The integratin f design with GIS must include the asset layers in GIS with applicable statuses in service, in cnstructin, planned etc. T enable this all wrk must be assigned t assets thrugh the lifecycle. The utput f the design & estimatin prcess shuld trigger the creatin f assets at the agreed level, with the applicable status in the GIS and als in the ERP. This integratin starts with the definitin f Cmpatible Units used in the estimatin prcess. Attributes assigned t the material items and/r cmpatible unit shuld be systematically passed t the ERP n the creatin f the technical bjects used t represent the asset. BC11 Peple and Culture The integratin if the rganisatin structure managed in the ERP is critical fr the Apprval prcesses utilised thrughut the lifecycle f wrk. The integratin f the resurces and their availability is critical in the supprt f the asset lifecycle, including estimatin, capacity planning, scheduling & dispatch. BC14 IT Mbility Page 8 f 38

10 Business Case Enterprise Asset Management - Categry Analysis RIN Purpse The Mbility framewrk is an essential pre-requisite t the EAM Mbility initiatives. The current apprach t mbility in SA Pwer Netwrks is disparate resulting in a number f framewrks and applicatins. The result f this being a user may have multiple devices in the field r may be required t tggle thrugh multiple applicatins in the curse f their day. BC16 Field frce Mbility It is essential that this initiative is integrated with EAM Mbility and that there is a lifecycle apprach. Field Frce Mbility must be mre than time sheeting and will need t include cnfirmatins f ther resurces cnsumed, cnfirmatin f utput quantities fr standard tasks (i.e. unit csting), ability t capture and view asset attribute and cnditin data etc. BC18 Systems Integratin The integratin f large crprate systems such as SAP, ADMS, OMS, GIS and CIS O/V is critical t the success f an EAM apprach. This includes the ability t simplify asset data entry & maintenance fr the users as well as the ability t utilise the pwer f these systems t imprve the efficiency f the business prcesses. BC21 Business Intelligence Enablement This enablement is a critical pre-requisite piece f the puzzle. Withut the analytical capability the significant and grwing data quantities will nt allw the business t extract the benefit f taking an EAM apprach. BC24 Enterprise Dcument and Cntent Management Again this fundatin technlgy is a critical pre-requisite. The EAM business case will be asking users t capture a large amunt f data and systematically link that data t technical bjects that represent the assets and wrk bjects. This data takes n many different frms including dcuments such as e-drawings, equipment schematics, CAD drawings, and phtgraphs. It is essential t the efficient business prcess that a user may simply access this required infrmatin abut an asset whether at head ffice r in the field by accessing the cntent via an asset f a piece f wrk (rder/prject0 assciated with that asset. BC32 Regulatry Cmpliance The AERs benchmarking and categry analysis Regulatry Infrmatin Ntices are asking fr a level f infrmatin that is currently nt available frm the SA Pwer Netwrks Crprate systems. This infrmatin is a cmbinatin f financial, asset, wrk (rder/prject), site/lcatin, and utput (unit csts) specific data. It is imperative that an ver-arching business & slutin architecture is cmpleted prir t the design f the financial and EAM slutins. Withut a detailed architecture that supprts the AERs cmpliance requirements any design and build effrt may be subject t a review and mdificatin at a future date. Page 9 f 38

11 Business Case Enterprise Asset Management - Categry Analysis RIN Purpse 2.2 Assumptins / Cnstraints SA Pwer Netwrks will undertake a prject t develp an ver-arching business and slutin architecture that includes a Blueprint encmpassing the necessary transfrmatin acrss prcess, peple, systems and data. The fllwing assessment is based upn the scpe f the Business Case BC03 Enterprise Asset Management, and the readers f this dcument understand that EAM is nt a system, nr des the scpe f the afre-mentined business case deliver all f the capability required t adpt an EAM apprach. There are a number f Business Cases that cntain an uplift in capability that will be required t satisfy the requirements f the AERs Categry Analysis RIN. This addendum is nly fcused n the EAM Business Case. The fllwing assessment has been cmpiled under a restricted timeframe and therefre there is a level f risk assciated with this. Page 10 f 38

12 Business Case Enterprise Asset Management - Categry Analysis RIN Summary AER Categry Analysis 3. AER Categry Analysis Summary 3.1 Overview The AER Categry Analysis data template (Cpy f AER Categry Analysis data templates fr distributin netwrk service prviders unprtected.xls) cntains a level f required infrmatin that is nt efficiently btained frm current SA Pwer Netwrks infrmatin systems and therefre must be btained by lengthy and tedius manual prcesses. Due t gaps in the current data set, it is als subject t a level f estimatin. Cllecting the data has a significant impact n the current business prcesses due t the level f granularity required t cmplete the template and the fact that this data, if directly available, is held in disparate systems (e.g. SAP, Excel, external service prvider systems etc.). SA Pwer Netwrks seeks t ensure the expenditure infrmatin required t cmplete the AER Categry Analysis data template is available efficiently frm it infrmatin systems. The business will need t underg a level f transfrmatinal change in rder t achieve this. This change will encmpass changes t the assciated prcesses, peple, systems and data. 3.2 High Level Impact Assessment The fllwing high level business impact assessment has been cmpiled frm the AER Categry Analysis draft template in rder t gain an understanding f the amunt f change required. The wrksheets that have been cnsidered are thse that have a relatinship with the capabilities included within the scpe the Business Case BC03 Enterprise Asset Management Expenditure Summary & Recnciliatin The business currently manages the equivalent categrisatin f expenditure using the custmised EU Activity which frms a dimensin f the Prfit Centre number assigned t all cst and revenue bjects in SAP. This ensures all transactinal data is assigned t a Regulatry expenditure categry. The prcess f Prfit Centre determinatin is a critical prcess with the wrks management prcesses. The future apprach may be satisfied in ne f tw ways: 1. Cntinue use f SAP Prfit Centre accunting. This will require a change t the custm expenditure classificatin structure, and als changes t the Business Warehuse infrmatin prviders and reprts. 2. Explre use f SAPs FERC mdule. The FERC (Federal Energy Regulatry Cmmissin) mdule was created t slve the cst f service reprting at Pacific Gas & Electric (PG&E). The adptin f this mdule will require a change t the use f SAP Prfit Centre Accunting as well as changes t the prcesses by which maintenance Ntificatins and Orders are created. Finally, it will require changes t the reprting landscape t supprt the current level f reprting. Because f the tight integratin between the financial mdules f SAP this requirement must be cnsidered within the scpe f the Business Case BC04 Financial Management and frms a critical dependency fr the Business Case BC03 Enterprise Asset Management. Page 11 f 38

13 Business Case Enterprise Asset Management - Categry Analysis RIN Summary AER Categry Analysis Expenditure Categries The fllwing expenditure categries require cnsideratin frm an EAM scpe pint f view: Replacement expenditure (Repex) Augmentatin expenditure (Augex) Cnnectins Vegetatin Management Maintenance Emergency Respnse Public lighting Metering Ancillary services - Fee-Based Ancillary services Quted The wrksheet requirements include a cmbinatin f data as fllws: Asset Data Asset Class / Gruping / Categries Attributes vltage, material type, vltage, functin, etc. Lcatin CBD, Urban, Rural Vegetatin spans, crridrs, lengths Prject/Wrk Data Custmer Type Classificatins regarding cmplexity Cnnectin types Clearance methds Numbers f assets/categries maintained and type f maintenance Cst & Vlume Metrics $ and vlumes by year Replacements by year Failures by year Asset Units (number, kms etc.) added by year MVA added by year Average unit csts by asset / categry The listing abve des nt give ne a sense f the full depth and breadth f the requirements as it represents nly a small sample, in rder t give the reader a sense f the requirements embdied in the RIN assciated with the asset and wrks prgram. The impact n the current business prcesses is substantial and indeed transfrmatinal as the RIN bviusly includes all assets and wrk types assciated with the Regulated business. In rder fr SA Pwer Netwrks t be in a psitin whereby all the data and infrmatin requirements may be generated using an autmated reprting functin, a change t systems as fllws is required: Hw the asset base and assciated asset attributes are represented; Page 12 f 38

14 Business Case Enterprise Asset Management - Categry Analysis RIN Summary AER Categry Analysis Hw wrk is assigned t the asset base; Hw prject/wrk attributes are represented; Hw the expenditure ($) is represented; and Hw vlume metrics are represented Age Prfile The age prfile is required by: Asset Grup Asset Categry / Type Metrics Ecnmic Life (years) Mean & Standard Deviatin Number Cmmissined by year This requirement means that all Asset Grups / categries / assets included in the RIN must be assigned the applicable acquisitin/cmmissining dates required t calculate the mean and standard deviatin. Further t this, the systems must be capable f capturing the vlume metric at the Asset Grups / categries / asset level. Page 13 f 38

15 Business Case Enterprise Asset Management - Categry Analysis RIN Recmmendatin Business Case Current 4. Business Case Current Recmmendatin 4.1 Overview f Current Recmmendatin The Business Case BC03 Enterprise Asset Management was nt written with the requirements f the AER Categry Analysis RIN in mind. Rather, the business case is fcused n delivering an uplift in capability acrss the fllwing: Asset Management Accuntability Asset Infrmatin Management Asset Lifecycle Management This is achieved by initiatives that include: EAM Blueprint Asset data EAM Dcument & Recrds Management EAM Mbility Cnditin Data Analytics Prcesses Ge Enablement The fllwing figure displays a high level schedule f the initiatives that have been identified: Initiative H H H H H H H H H H H H H H EAM Blueprint Asset Data Dcument Management - EAM Mbility - EAM Cnditin Data Analytics Prcesses Ge enablement The initiatives at the level stated in the business case d nt adequately allw the Reset Team t understand the capability delivered in rder t meet the RIN requirements. Page 14 f 38

16 Business Case Enterprise Asset Management - Categry Analysis RIN Implicatins AER Categry Analysis 5. AER Categry Analysis Implicatins The fcus f the fllwing discussin relates t a review f the capabilities within the Business Case BC03 Enterprise Asset Management n the basis that the AER categry Analysis RIN requirements have pririty. Given this fcus, this sectin utlines what wuld be the likely impacts upn the deliverables and timeframes. 5.1 Key Prerequisite Business Case Initiatives Given the fact that the AER Categry Analysis RIN cvers all expenditure related t the Regulatry Business it is therefre by nature related t a number f Business Cases that cntain an uplift in capability. The fllwing business cases cntain initiatives that are a pre-requisite fr the EAM Business Case initiatives. BC04 Financial Management This business case must define the apprach t the reprting f the categries cntained with the Expenditure Summary as discussed in sectin (Expenditure Summary & Recnciliatin) abve. If the functinality in use tday is changed there is an impact n hw the wrk ntificatins and wrks rders are created in the business. BC05b Prject, Prgram and Prtfli Management The RIN requires unit cst level infrmatin in parts and a physical cunt fr vlume metrics. This will require the business t breakdwn the wrk packages t mre granular level and schedule these t the field. This in turn relies upn the level f Cmpatible Unit data defined and aggregated thrugh the estimatin prcess. BC10 Integrated Design & Estimatin The Cmpatible Unit (CU) data requirements must be changed in rder that attributes may be included at the CU level. This is als required t enable the capability t capture a physical cunt fr the vlume metrics. BC14 IT Mbility The Mbility framewrk is an essential pre-requisite t the EAM Mbility initiatives. BC16 Field Frce Mbility It is essential that this initiative is integrated with EAM Mbility and that there is a lifecycle apprach. Field Frce Mbility must be mre than time sheeting and will need t include cnfirmatins f ther resurces cnsumed, cnfirmatin f utput quantities fr standard tasks (i.e. unit csting), ability t capture and view asset attribute and cnditin data etc. BC24 Enterprise Dcument and Cntent Management Again this fundatin technlgy is a critical pre-requisite. The EAM business case will be asking users t capture a large amunt f data and systematically link that data t technical bjects that represent the assets and wrk bjects. Page 15 f 38

17 Business Case Enterprise Asset Management - Categry Analysis RIN Implicatins AER Categry Analysis 5.2 Key Enabling Business Case Initiatives The fllwing business cases cntain initiatives that if included as in scpe will enable the ability t mre efficiently meet the infrmatin requirements f the AER Categry Analysis RIN: BC05b Prject, Prgram and Prtfli Management The functinal capability f SAP PPM will enable the business t manage prgrams f wrk and prduce reprts that are aligned t the classificatins within the Draft Template. BC18 Systems Integratin The integratin f large crprate systems such as SAP, ADMS, OMS, GIS and CIS O/V is critical t the success f an EAM apprach. This includes the ability t simplify asset data entry & maintenance fr the users as well as the ability t utilise the pwer f these systems t imprve the efficiency f the business prcesses. Page 16 f 38

18 Business Case Enterprise Asset Management - Categry Analysis RIN AER Categry Analysis Implicatins 5.3 Key Requirements and alignment with Business Cases The fllwing table gives an verview f the key requirements cntained within the AER Categry Analysis data template (Cpy f AER Categry Analysis data templates fr distributin netwrk service prviders unprtected.xls) that are related t the EAM Business Case and the prpsed business case that shuld cntain initiatives t prvide the applicable capability. High Level Requirement Descriptin Business Case Initiative EAM Blueprint A number f the wrksheets ask fr a level f asset related infrmatin. Asset Data: The asset data and classificatin requirements need t defined, built in ur systems and then data cleansing & data capture activities may cmmence. Asset Data Asset Class / Gruping / Categries Attributes vltage, material type, vltage, functin, etc. Lcatin CBD, Urban, Rural BC03 Enterprise Asset Management Dcument Management EAM: The capability t integrate dcuments with the technical bjects that represent the asset. Mbility - EAM: The capability t capture asset infrmatin using mbile technlgy and applicatins. Vegetatin spans, crridrs, lengths Analytics: The capability t execute the applicable reprts using the Business Intelligence tls. BC10 Integrated Design & Estimatin Definitin f the Cmpatible Units with the applicable attributes fr reprting. Prject / Wrk Data A number f the wrksheets ask fr a level f prject/wrk related BC03 Enterprise Asset Management EAM Blueprint: Page 17 f 38

19 Business Case Enterprise Asset Management - Categry Analysis RIN AER Categry Analysis Implicatins High Level Requirement infrmatin. Descriptin Business Case Initiative Custmer Type Classificatins regarding cmplexity Cnnectin types Clearance methds Numbers f assets/categries maintained and type f maintenance Prcesses: The prcesses fr all applicable wrk types will require a review and mdificatin t ensure the applicable data is captured during the lifecycle f the wrk. Dcument Management EAM: The capability t integrate dcuments with the technical bjects that represent the wrk. Mbility - EAM: The capability t use mbile technlgy and applicatins t simplify the increased level f data capture required frm an asset management perspective. Analytics: The capability t execute the applicable reprts using the Business Intelligence tls. BC10 Integrated Design & Estimatin BC16 Field Frce Mbility BC05b Prject, Prgram and Prtfli Management Estimatin prcess creates wrk packages and wrk breakdwn structures that enable the capability t cunt physical vlumes and assign csts at the applicable unit level. It is critical the applicatins in the field enable the simple capture f an increased level f data. This data includes the cunt f physical vlumes and the assignment f csts at the applicable wrk package/unit level. Resurce Capacity Planning & Scheduling f the wrk packages that enable the capability t cunt physical vlumes and assign csts at the applicable unit level. Cst Metrics Expenditure Summary & BC04 Financial Re-visit use f Prfit Centre Accunting fr Expenditure Categry Page 18 f 38

20 Business Case Enterprise Asset Management - Categry Analysis RIN AER Categry Analysis Implicatins High Level Requirement recnciliatin (wrksheet 2.1): Descriptin Business Case Initiative The use f the EU Activity included as a dimensin within the Prfit Centre assigned t all cst and revenue bjects acrss the business prvides this capability. Management BC03 Enterprise Asset Management reprting. Re-visit use f CO Activity Type functinality in SAP t meet the requirements f the Labur wrksheet (2.11). This in turn impacts the wrk prcesses and cllectins f actuals in the field. EAM Blueprint Prcesses: Based upn the utcmes f BC04 abve, the prcess by which wrk ntificatins and wrk rders are created may need t be mdified. Analytics: The capability t execute the applicable reprts using the Business Intelligence tls, including the ability t reprt by Calendar Year and the Regulatry Year. Cst & Vlume Metrics A number f the wrksheets ask fr a level f cst and vlume metrics. $ and vlumes by year Replacements by year Failures by year Asset Units (number, kms etc.) added by year MVA added by year BC03 Enterprise Asset Management EAM Blueprint Prcesses: The prcess by which wrk ntificatins and wrk rders are created, managed and clsed ut will need t be mdified. Analytics: The capability t execute the applicable reprts using the Business Intelligence tls, including the ability t reprt by Calendar Year and the Regulatry Year. Average unit csts by asset / categry BC10 Integrated Design & Estimatin Estimatin prcess creates wrk packages and wrk breakdwn structures that enable the capability t cunt physical vlumes and assign csts at the applicable unit level. Page 19 f 38

21 Business Case Enterprise Asset Management - Categry Analysis RIN AER Categry Analysis Implicatins High Level Requirement Descriptin Business Case Initiative BC16 Field Frce Mbility It is critical the applicatins in the field enable the simple capture f an increased level f data. This data includes the cunt f physical vlumes and the assignment f csts at the applicable wrk package/unit level. BC05b Prject, Prgram and Prtfli Management Resurce Capacity Planning & Scheduling f the wrk packages that enable the capability t cunt physical vlumes and assign csts at the applicable unit level. Prject, Prgram and Prtfli management functinality t assist in the classificatin, management and reprting f the expenditure prgrams. Please nte: The table abve is by n means a definitive table. Fr example, changes related t custmer and systems such as CRM/CIS /v have nt been cnsidered. Page 20 f 38

22 Business Case Enterprise Asset Management - Categry Analysis RIN Optin 2 Revisited 6. Optin 2 Revisited This ptin represents a balanced apprach twards Enterprise Asset Management acrss the rganisatin, and has nw been re-visited t take int accunt the AER Categry Analysis RIN requirements. The fcus f the initial initiatives will be n meeting the AER Categry Analysis RIN requirements and as such it is anticipated that there will need t be a level f cmprmise which is likely t result in a level f re-wrk t attain the final bjectives f the business case. It must be nted up frnt that this represents a significant transfrmatinal step fr the business requiring SA Pwer Netwrks t enhance and upgrade existing capabilities acrss prcess, peple, systems and data, in rder t mve away frm a siled and nn-integrated apprach twards an Enterprise apprach. 6.1 Scpe Scpe Inclusins The high level scpe f this ptin includes initiatives that seek t drive imprvements acrss the three key Asset Management capabilities and are detailed as fllws: Asset Management Capability Initiative Discussin Asset Management Accuntability EAM Blueprint Cntinued adptin f ISO as the Asset Management Standard fr SA Pwer Netwrks. Definitin f the Asset Management Plicy, Strategy and Objectives. Definitin f the Asset Management Plans. In rder t enact the chsen Asset Management Standard prepare an Enterprise Asset Management Blueprint that sets the fundatin fr subsequent initiatives, that includes: Adptin f an agreed Gvernance mdel. Definitin f Asset Management prcesses. Define and agree the asset management rles, respnsibilities and accuntabilities. Ensure thse filling the asset management rles have the capacity and apprpriate level f capability, up-skilling as necessary. Definitin f the system and data requirements. Definitin f the infrmatin requirements. Definitin f a radmap f initiatives fr the way frward, including the depth and breadth f assets t be addressed in the asset data and cnditin data initiatives. Blueprint design t include the applicable requirements f the AER Categry Analysis RIN. Page 21 f 38

23 Business Case Enterprise Asset Management - Categry Analysis RIN Optin 2 Revisited Asset Management Capability Initiative Discussin Asset Infrmatin Management Asset Data Implement an Asset Data & Infrmatin Gvernance mdel acrss the business. Implement imprved asset data capture prcesses (including creatin, maintenance and display) and maintain reliable asset related infrmatin, including: Cnfirmatin f the asset data structure defining the single surce f truth fr each data element and integratin rules with ther surces; Definitin f the master data standards fr each data element; Definitin f the asset attribute data required by asset class such as brand, mdel, type, rating, duty, physical lcatin and netwrk lcatin; Enable views f the asset data that include the fllwing dimensins: Maintenance Ge spatial Netwrk cnnectivity Custmer Operatinal Financial Envirnmental & Safety Vegetatin Management A vegetatin and bushfire management capability t track and mnitr vegetatin and grwth rates ver time. Implementatin f Linear Asset management t assist with segmentatin f the netwrk asset. EAM Dcument & Recrds Management This initiative will be brken dwn int 3 phases with the initial phase fcused upn the applicable requirements f the AER Categry Analysis RIN. Implement Dcument and Recrds Management fr EAM, based upn an enterprise wide framewrk defined in the Dcument Management Business Case (BC24), including: Integrate dcuments such as e-drawings, Page 22 f 38

24 Business Case Enterprise Asset Management - Categry Analysis RIN Optin 2 Revisited Asset Management Capability Initiative Discussin equipment schematics, CAD drawings, and phtgraphs with technical bjects (equipment, task lists) that represent the asset. EAM Mbility Implement imprved mbile capability fr EAM based upn a based upn an enterprise wide framewrk defined in the IT Mbility Business Case (BC14), including: Mbile asset inspectins; Field frce asset infrmatin display & updates; Access t drawings, equipment manuals and ther dcuments assciated with the asset. Cnditin Data Implement imprved prcesses by which asset cnditin and perfrmance data is created, maintained and displayed, including: Histrical asset cnditin and measurement data; Planned and cmpleted wrk histry; Integrated with the asset data capture prcesses. Analytics Implement imprved asset analytics capability, including: Ability t analyse and frecast the relatinship f asset cnditin t asset and netwrk perfrmance ver time (e.g., prbability f failure, cnnectin pint reliability). This initiative will be brken dwn int 4 phases with the initial phase fcused upn the applicable requirements f the AER Categry Analysis RIN. Asset Lifecycle Management Prcess Implementatin f integrated asset life cycle prcesses as per the EAM Blueprint, including tuch pints with: Netwrk Standards; Design and Estimatin; Material master data management; Cllectin f asset data thrughut the lifecycle; Assignment f all netwrk related asset wrk t an asset fr asset histry purpses. Page 23 f 38

25 Business Case Enterprise Asset Management - Categry Analysis RIN Optin 2 Revisited Asset Management Capability Initiative Discussin Implement the fllwing prcesses and capability: Asset Management Prgram develpment; Preventative Maintenance Prgram: Realign and cleanse Maintenance Planning data in the ERP (maintenance strategy, maintenance plan, task lists); Wrk Management prcesses including: Inspectins, Cnnectins, Preventative & Crrective maintenance Outage Management Vegetatin management Cnditin Based Maintenance and Reliability Centred Maintenance ; and A Rtable cncept (including refurbishment) fr key assets such as transfrmers. Implement required system interfaces required t supprt the agreed prcesses defined in the EAM blueprint, including: Integratin f SAP with GIS enabling mre efficient asset data maintenance and wrk management prcesses; Integratin f SAP with ADMS fr the management f the switching prcess; Integratin f SAP with OMS fr the management f unplanned utages; Integratin f SAP with Custmer Infrmatin System (CIS O/V replacement) t enable the linkage f asset, custmer and wrk. Integratin with EAM related initiatives that are the subject f the fllwing Business Cases: BC02a Custmer Facing Initiatives BC04 Financial Management BC05a Supply Chain & Prcurement BC05b Prject, Prgram and Prtfli Management BC09 SAP Fundatins BC10 Integrated Design & Estimatin BC11 Peple and Culture BC14 IT Mbility BC16 Field Frce Mbility BC18 Systems Integratin Page 24 f 38

26 Business Case Enterprise Asset Management - Categry Analysis RIN Optin 2 Revisited Asset Management Capability Initiative EAM Dcument & Recrds Management Discussin BC21 Business Intelligence Enablement BC24 Enterprise Dcument and Cntent Management BC32 Regulatry Cmpliance This initiative will be brken dwn int 3 phases with the initial phase fcused upn the applicable requirements f the AER Categry Analysis RIN. Implement Dcument and Recrds Management fr EAM, based upn an enterprise wide framewrk defined in the Dcument Management Business Case (BC24), including: Integrate dcuments such as e-drawings, equipment schematics, CAD drawings, and phtgraphs with wrk management bjects (ntificatins, rders, prjects, measurement dcuments). EAM Mbility Implement imprved mbile capability fr EAM based upn a based upn an enterprise wide framewrk defined in the IT Mbility Business Case (BC14), including: Mbile wrk delivery and dispatch; Mbile asset inspectins; Ge enablement; Access t drawings, equipment manuals and ther dcuments assciated with the asset. Analytics Implement imprved asset analytics capability, including: Ability t mdel whle f life asset cst ver time; Integrated Business Risk Management framewrk; Ability t deliver Level f Service perfrmance reprting. Ge Enablement This initiative will be brken dwn int 4 phases with the initial phase fcused upn the applicable requirements f the AER Categry Analysis RIN. Implement required system interfaces required t supprt the agreed prcesses defined in the EAM blueprint, including: Page 25 f 38

27 Business Case Enterprise Asset Management - Categry Analysis RIN Optin 2 Revisited Asset Management Capability Initiative Discussin Ge enablement f SAP thrugh integratin with GIS enabling mre efficient asset data maintenance and wrk management prcesses; Extensin f ge enablement t mbility Scpe Exclusins The scpe f this ptin excludes the fllwing initiatives that shuld be addressed beynd 2020 based upn the SA Pwer Netwrks Strategic Plan fundatin f Innvatin and Relentless Imprvement. Asset Management Capability Initiative Discussin Asset Infrmatin Management Asset Lifecycle Management Asset Data Implement imprved asset data capture prcesses (include creatin, maintenance & display) fr Real Estate and Fleet assets. EAM Dcument & Recrds Management Integratin f imagery frm Lidar, Drne and ther surces with technical bjects representing the asset fr asset management purpses. Cnditin Data Implement real time cnditin mnitring thrugh the transfer f cnditin and/r perfrmance data frm systems such as ADMS t the ERP fr asset management purpses. Analytics Implement imprved asset analytics capability, including: Mnitring f perfrmance indicatrs such as SAIDI & SAIFI by identifying assets r asset grups that directly affect such indicatrs. Investment mdelling capability including what if scenari analytics Prcess Implement the prcess / capability t supprt Real Estate and Fleet. Implement enhanced asset management prcess / capability including: Wrk Clearance Management t enable the tagging prcess (includes SAP / ADMS / OMS interfaces); Implement Operatinal Risk Management t assist with peratinal risk management and imprve envirnmental, health and safety Page 26 f 38

28 Business Case Enterprise Asset Management - Categry Analysis RIN Optin 2 Revisited Asset Management Capability Initiative Discussin EAM Dcument & Recrds Management standards. Implement enhanced reliability prcess and sftware. Investigate Augmented Reality technlgy Integratin f imagery frm Lidar, Drne and ther surces with wrk management bjects (ntificatins, rders). Cnditin Data Implement real time cnditin mnitring thrugh the transfer f cnditin and/r perfrmance data frm systems such as ADMS t the ERP triggering the creatin f wrk management bjects (ntificatins, rders) fr asset management purpses. Analytics Implementatin f imprved analytics t supprt the fllwing prcesses: Real Estate and Fleet; Wrk Clearance Management Operatinal Risk Management Ge Enablement Investigate ability t stre Lidar images t the right ge-lcatin. Further t the abve, the scpe excludes thse capabilities that are included in ther Business Cases including thse identified at Sectin 5 (AER Categry Analysis Implicatins) abve. Page 27 f 38

29 Business Case Enterprise Asset Management - Categry Analysis RIN Optin 2 Revisited 6.2 Schedule The fllwing figure displays a high level schedule f the initiatives that have been identified: Initiative H H H H H H H H H H H H H H EAM Blueprint Asset Data Dcument Management - EAM Mbility - EAM Cnditin Data Analytics Prcesses Ge enablement Legend: Fcussed n EAM and AER requirements fcussed n EAM AER Categry Analysis related capabilities The schedule abve indicates that the AER Categry Analysis related capabilities shuld be in place by the end f the calendar year 2016, assuming the necessary pre-requisites are achieved. Initiative Deliverables / Outcmes Timeframe EAM Blueprint Blueprint design t include the applicable requirements f the AER Categry Analysis RIN. Blueprint design extended t cater fr the EAM bjectives f the rganisatin. 01/07/2014 t 31/12/2014 Asset Data Phase 1 Definitin and implementatin f the data structures and prcesses required t supprt the requirements f the AER Categry Analysis RIN. 01/07/2015 t 31/12/2016 Dcument Management EAM The capability t integrate dcuments with the technical bjects that represent the assets and wrk. 01/07/2015 t 30/12/2015 Mbility EAM The capability t enable asset data capture in the field thrugh asset inspectin and ther wrk prcesses. 01/01/2016 t 31/12/2016 Analytics Phase 1 The capability t execute Business Intelligence reprts that supprt the requirements f the AER Categry Analysis RIN. 01/01/2016 t 31/12/2016 Prcesses Phase 1 Prcesses fr all applicable wrk types have been mdified t supprt the requirements f the AER Categry Analysis RIN. 01/07/2015 t 31/12/ Page 28 f 38

30 Business Case Enterprise Asset Management - Categry Analysis RIN Optin 2 Revisited 6.3 Delivery and Change Management Csts The table belw is a summary f the capital prject delivery and change management csts t deliver capability t supprt the businesses EAM bjectives as well as thse related t the AER Categry Analysis RIN. A detailed breakdwn f these csts is prvided in the attached MS Excel Financial Assessment spreadsheet (refer t Appendix I). Table 1 Delivery and Change Management csts by Business Unit ($M Real 2013/14) Business Unit 2014/ / / / / /20 Ttal 2015/ / / /22 Ttal IT Delivery and Change Management Nn-IT Delivery and Change Management TOTAL CAPITAL Table 2 utlines the cmbined IT and nn-it capital csts by initiative. Table 2 Delivery and Change Management csts by Prject ($M Real 2013/14) Prject Name 2014/ / / / / /20 Capital 2015/ / / /22 Ttal EAM Blueprint Asset Data Dcument management Mbility Cnditin data Analytics Prcesses Ge enablement Enterprise Asset Management Recurrent Functinal Upgrade TOTAL CAPITAL Page 29 f 38

31 Business Case Enterprise Asset Management - Categry Analysis RIN Optin 2 Revisited Delivery Cst Assumptins The fllwing additinal assumptins have been made in the estimatin f the delivery cst: EAM Blueprint The EAM Blueprint will include a Blueprint t address the requirements f the AER Categry Analysis RIN. Asset Data The first phase f the Asset Data initiative will fcus upn the capability t supprt the AER Categry Analysis RIN. Estimatins indicate this initiative will need t be extended by apprximately 6 mnths. Included is the cst fr 30 external cntractrs t accelerate the data cllectin prcess ver a 15 mnth perid. EAM Dcument & Recrds Management There is n perceived extra requirement t supprt the AER Categry Analysis RIN. EAM Mbility There is n perceived extra requirement t supprt the AER Categry Analysis RIN. Cnditin Data There is n perceived extra requirement t supprt the AER Categry Analysis RIN. Analytics The first phase f the Asset Data initiative will fcus upn the capability t supprt the AER Categry Analysis RIN. Estimatins indicate this initiative will need t be extended by abut 12 mnths. Prcess The first phase f the Asset Data initiative will fcus upn the capability t supprt the AER Categry Analysis RIN. Estimatins indicate this initiative will need t be extended by abut 6 mnths. Ge enablement There is n perceived extra requirement t supprt the AER Categry Analysis RIN. Page 30 f 38

32 Business Case Enterprise Asset Management - Categry Analysis RIN Optin 2 Revisited Change Management Cst Assumptins The fllwing assumptins have been made when estimating the Change Management csts: 1. Training f staff during and pst-delivery f the new systems and prcesses has been prvided fr all new initiatives detailed in this ptin. 2. Onging training f staff with regards t the use f the SAP ERP system utside the scpe f the new functinality prvided under this business case is nt included in the cst f Change Management. 3. Operatinal Change Management, including IT training and supprt are included. 4. The amunt includes change csts during Planning & Delivery, pst-implementatin and warranty stages. 5. A detailed breakdwn f these csts is prvided in the Financial Evaluatin Wrksheet attached t this dcument. Page 31 f 38

33 Business Case Enterprise Asset Management - Categry Analysis RIN Optin 2 Revisited 6.4 Opex Step Change The table belw is a summary f the pex step change subsequent t the delivery f the capability t supprt the businesses EAM bjectives as well as thse related t the AER Categry Analysis RIN. A detailed breakdwn f these csts is prvided in the attached MS Excel Financial Assessment spreadsheet (refer t Appendix I). Table 3 Opex Step Change ($M Real 2013/14) Business Unit 2014/ / / / / /20 Ttal 2015/ / / / / / / / /27 Ttal IT Opex Nn-IT Opex TOTAL Opex Step Change Cst Assumptins Recurrent Csts are made up f: 1. Annual sftware maintenance fees f 22% f riginal purchase price. 2. Uplift f resurces t supprt Asset Data prcesses, Mbility and Ge enablement. 3. The cst f data gvernance has nt been included as part f Recurrent Csts and is assumed t be included in Business As Usual. 4. Frm time t time, there will be a requirement t apply upgrades and patches t the crprate systems, which will impact the mdules used by EAM prcesses. The csts related t this wrk is nt included in recurring csts fr this Business Case as it applies acrss the entire landscape and will included in the verall nging upgrade and enhancement csts. Page 32 f 38