Asset Management Culture Change for Effective and Efficient Sewerage Service Delivery
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1 Asset Management Culture Change for Effective and Efficient Sewerage Service Delivery
2 Contents Overview Roles & Responsibilities in Sewerage Asset Management in Malaysia Asset Management in IWK Application of Asset Risk Management in IWK Way Forward Conclusion: Benefits to IWK
3 Overview IWK Assets* 6,204 Public Sewage Treatment Plant 983 Network Pump Station 17,378 km Sewer Pipeline over 60,000 equipments 21.7 million Population Equivalent (PE) *Data as of December 2014 IWK Asset Related Services Operate & maintain STPs & NPS (nearly 20 types of processes) Provide Mechanical & Electrical Services for all the assets Resolve all matter relating to Sewer Network Operational issues (blockage;overflow, etc) Provide septic tank desludging services National Sewerage Company - wholly owned by Minister of Finance Inc. Covering most of Peninsular Malaysia (except Kelantan, Pasir Gudang & Johor Bharu) &Labuan 21 Unit Offices to Operate & Maintain assets.
4 Roles & Responsibilities in Sewerage Asset Management (WSIA Act) SPAN Policy Government Capital Projects Provide policy direction Economic regulation Set KPI for SL & regulation Service Licensee Facility Licensee Owner of the assets Assess asset needs of SL Determine funding and procurement strategies Monitor the asset upkeep by SL Asset provision Sewerage services Operate & Maintain the assets in the most optimum manner Efficient program Minimise risks Focussed resources. Transparent OPEX & CAPEX costs. capital allocation works of
5 Asset Management in IWK IWK s business is very much centred on Physical Infrastructure Assets It is crucial for the physical assets to be systematically managed together with the interfaces with human, financial, information and intangible assets. In 2010 IWK adopted PAS55:2008 as the basis of developing IWK s Asset Management System. BSI PAS 55 : 2008 defines Asset Management as: Systematic and coordinated activities and practices through which and organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan.
6 Strategic Approach to Asset Management In line with BSI PAS ISO Effective management of assets through risk management Total Integrated System- SAP Integrated GIS ERP System- IFS Asset Risk Management System (ARMS) Sewer Modelling Asset Management Information Systems (AMIS) GIS Document Management Systems MMS Priority to compile asset data Simple asset databases created to store data. Hard copy drawings compiled Data verification done for accuracy
7 FROM O&M TO ASSET MANAGEMENT Strategic Objectives not clear and visible. Efforts are uncoordinated and not aligned. PREVIOUS Strategic Objectives are clear and holistic (taking into consideration the core business of the assets and future business potential). Efforts are aligned and coordinated. VISION The overall business of the company will be driven by Asset Management in an aligned, systematic and transparent manner to achieve the company s objectives and goals by optimizing the value of the assets and by taking into consideration sustainability principles.
8 Issues Related to IWK s Assets
9 PAS55 Gap Analysis & Action Plans PAS 55 GAP ANALYSIS 27 Action Plans
10 IWK Asset Management System ENABLERS & CONTROLS a)structure Authority & Responsibility Steering Committee & Risk Committee b)training Awareness & Competence Competency Matrix c)communication Asset Management Bulletin, AMP Poster, Change Management- visiting Unit Offices. d)information Management - AMIS, SAP, ARMS, LMS, COEDS,BRAINS, IGIS. Asset Data Model & System Data Map. e)risk Management Framework and System f)legal - Regulation Register g)management of Change Driven by AMU together with Steering Committee
11 APPLICATION OF ASSET MANAGEMENT IN IWK
12 Development of Asset Risk Management in IWK
13 A risk is something that may cause impact to our business
14 Transparent Decision Making Asset Risk Management Criticality Scoring Site Investigation Past Incidences & Records
15 Sample Graphs Significant asset risks in 30% of assets
16 Business Outcomes ASSET RISK resulting from the existing condition of the asset Mitigated by asset improvement CONTROLLED THROUGH: 1) Funding- SCC/CAPEX/OPEX 2) Policy 3) Government Enforcement 4) Technology Improvements OPERATIONAL RISK- resulting from the breakdowns in internal procedures, people, systems and external threat. RISK RISK Probability of an event/incident occurring that might affect any of the 8 business outcomes Mitigated through operational improvements CONTROLLED THROUGH: 1) Internal Policy 2) Internal Funding 3) Sufficient & Competent Staff 4) Proper Facilities ( Lab, Instrumentation/ Tools) 5) Proper Process Control ( SOP, System) 6) Reliable Vendors & Contractors 7) Proper IT support Both Asset & Operational risks need to be addressed to ensure business outcomes. Asset and Operational risks are interrelated and affect one another.
17 WAY FORWARD Full impacts of the Asset Management System are yet to be realized as this process is still in the infancy stages. Currently, risk management is giving a transparent view of the risk profile. Asset risk based management is already helping to allocate and prioritize resources in the right areas. AMP is used currently being used as a basis of decision making. Continuing rollout of the Asset Management System - ensures sustainable, efficient and effective management of assets in the near future. The next action plans are to: Conduct continual review and monitoring - Asset Risk Management Workshop & Peer Review Panels. Development of Operational Risk Management Measure the effectiveness and relationship of CAPEX/OPEX strategies proposed in the AMP in reducing the risks and meeting the set asset management objectives. Develop benchmarks to balance CAPEX, OPEX costs, risk profile reduction and business.
18 CONCLUSION: Benefits to IWK KNOWLEDGE ACTIONS OUTCOMES RESULTS Better knowledge of assets, conditions, risk, performance & criticality Actions based on clear justifications Operations & Maintenance and CAPEX aligned to business needs Minimise risk & impact of asset failures Focussed allocation of resources Transparency to Operating & CAPEX costs Safety Compliances Customer satisfaction Cost effective service delivery Enhanced Image New working culture is currently being adapted
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