Delivery Management Guidelines Delivery Process 3 - Operations & Maintenance

Transcription

1 Delivery Management Guidelines Delivery Process 3 - Operations & Maintenance Version control Version 9-1 Date Status Approved

2 The IDMS Prov Infr Strat DP1: Portfolio Management DP1-1 Infrastructure Planning DP1-2 Programme Management Develop Develop Develop/review U-AMP (including Develop/review C-AMP (incl Authorise Monitor & /review Constr /review prioritised MTEF works list) portfolio level Work Plans) Implementation Control Proc Strat IPMP Close Out U-AMP C-AMP Manage Implementation G1(a) G1(b) G2 PC PF1.1 PF1.2 PF1.3 PF1.4 PF2.1 1 PF5 PF2.2 PF2.3 PF3 PF4 DP2: Project Management DP2-1 Implementation Planning DP2-2 Design DP2-3 Works DP2-4 Close Out PC 2 Prepare Packages Define Packages Develop/Review IPIPs (Prgr & Proj level) Design devlpmt Detailed design Compile MFC Info Construct / Deliver works Handover works Contracts Close Out PEP1 PEP2 IPIP PEP3 PEP4 PEP5 PEP6 PEP7 G3 G4 PC PC G5 PC G6(a) PC G6(b) G7 G8 3 4a 5 4b T1 T2 PF1.3 PF1.4 PF2.1 PF2.2 PF2.3 PF3 PF4 PF5 Adminstv Close Out DP3: Operations & Maintenance DP3-1 Recognise & accept assets DP3-2 Mobilisation for Facilities Mgt DP3-3 Operations DP3-4 Maintenance DP3-5 Demobilisation of Facilities Mgt G8 PF1.3 PF1.4 PF2.1 PF2.2 PF2.3 PF3 PF4 PF5 Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 2

3 AStructure of the Infrastructure Delivery Management Toolkit (IDMT) Management Companion Delivery Management Guidelines PG1: Prov Infr Strategy PG3: Perform Mgt Practice guides PG2: Constr Proc Strat Infrastructure Delivery Management System (IDMS) Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 3

4 Table of Contents 1. Purpose of this module Where am I within the Delivery Management Guidelines Introduction Preface Process Map Asset Operations and Maintenance Processes Recognise Asset and accept from Project Sub-process 1.1: Accept the physical asset at handover Sub-process 1.2: Ensure that relevant information is captured into the asset register Sub-process 1.3: Recognise the asset into the accounting system Mobilisation for Facilities Management Sub-process 2.1: Mobilise user and custodian staff to manage assets Sub-process 2.2: Ensure that Facilities Management services are in place and operational Operations of assets Sub-process 3.1: Conduct Facilities Management Sub-process 3.2: Conduct Engineering Infrastructure Management Sub-process 3.3: Conduct Property Management Sub-process 3.4: Conduct Condition Assessment Surveys Sub-process 3.5: Conduct Remaining Life-Cycle Costing Maintenance of Assets Sub-process 4.1: Conduct Preventative (Servicing) Maintenance Sub-process 4.2: Conduct Breakdown Repairs Demobilisation of Facilities Management Sub-process 5.1: Demobilise Facilities Management Asset management team general activities Planning of tasks/activities Execution of tasks/activities Logging of performance and task results Analysis of data Corrective action/improvement Feedback Acquisition of assets Acquisition of land Acquisition of immovable assets other than land Disposal of assets Asset Hierarchy Technical Condition Assessment Surveys Asset management elements of Operations & Maintenance Facilities Management...25 Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 4

5 Introduction Facilities Management: Soft services Facilities Management: Hard Services Building repairs and preventative maintenance O&M Planning Procurement Infrastructure (Engineering) Management Introduction Engineering infrastructure Infrastructure repairs and preventative maintenance O&M Planning Procurement Property Management Introduction Acquisition of property Managing rates and municipal services payments Lease management General advice on property management State Land Management Maintenance Management Asset Register Introduction Ownership of Asset Register Purpose of Asset Register Typical Information captured in an Asset Register Users of Asset Register Maintenance Introduction Maintenance process Definition of Maintenance Maintenance activities Types of maintenance Preventative maintenance Essential maintenance Condition-based works Remaining life-cycle costing Introduction Remaining life-cycle costing elements Time-value of money Costing of Asset Management: Operations Utility costs, rates and taxes...35 Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 5

6 Facilities Management: Soft Services Hard services and maintenance Major upgrades, refurbishments and renovations Disposal Risks O&M Performance Management Typical O&M Input, Activity and Output Indicators Input indicators Activity indicators Output indicators Performance of the individual...38 Table of Figures Figure 1: Portfolio Management in relation to other delivery processes...7 Figure 2: Asset Operations and Maintenance Process Map...10 Figure 3: Sub-process: Asset Recognition...11 Figure 4: Sub-process: Mobilisation...13 Figure 5: Sub-process: Operations of Assets...15 Figure 6: Sub-process: Maintenance of Assets...19 Figure 7: Sub-process: Demobilisation...20 Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 6

7 1. Purpose of this module The purpose of this module is to assist users in the operations and maintenance of infrastructure. It will provide users in fulfilling their obligations by following the following processes: 1) Recognise and accept assets 2) Mobilisation for Facilities Management 3) Operations 4) Maintenance 5) Demobilise Facilities Management 2. Where am I within the Delivery Management Guidelines PG1: Strategy PG3: Perf Mgt Practice guides PG2: Constr Proc Strat Figure 1: Portfolio Management in relation to other delivery processes 3. Introduction 3.1 Preface Asset Management: Operations and Maintenance (O&M) consists of all operational work from the moment assets have been recognised into the asset register and handed over to Operations from Projects until the disposal of an asset. It takes into account the strategic and decision-making work that takes place during the Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 7

8 asset strategy determination, asset portfolio planning and physical project implementation processes. The O&M process is linked to the overall service delivery plan of any department. Figure 1 above shows the relationship to other modules in the Delivery Management Guideline. This Module addresses the following major topics related to Asset O&M, namely: Asset operations processes o Asset recognition o Mobilisation for Facilities Management o Asset operations, which include Facilities management Engineering infrastructure management Property management Condition assessment surveys Remaining life-cycle costing. o Maintain assets o The demobilisation of Facilities Management. Specific explanations on the following topics related to O&M: o Acquisition and disposal of assets including land o Condition surveys o The asset register o Asset operations management o Maintenance o Remaining life-cycle costing. The Reader is advised to consult the following guidelines on immovable asset management when studying this Module, namely: User Asset Management Plans, Guideline for Users, National Department of Public Works, Version 1, Dated 20 October 2008 Custodian Asset Management Plans, Guideline for Users, National Department of Public Works, Version 1, Dated 20 October Note on the use of the term Asset versus Infrastructure: While the Delivery Management guideline generally uses the term Infrastructure to encompass assets, in tis module the majority of the body of knowledge stems from the Asset Management industry. Consequently, in order to maintain continuity with the body of knowledge relating to the operations and maintenance, the term Asset is generally used in this module as opposed to infrastructure. 3.2 Process Map Figure 2 below depicts the Level 2 processes for the Asset O&M and indicates the most important inputs and outputs from and to other asset management processes. Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 8

9 Trigger: Actual Handover from Project Implementation and & U- Amp (Acquisition Plan) from Portfolio Planning CIDB Toolkit Level 2 O&M Process Recognise asset and accept from Projects 1 Capital Asset including a facility Approved Infrastructure Programme Management Plan (IPMP) U Amp (Operations Plan) from Strategic Planning and C Amp (Approved maintenance activities and cost) from Portfolio Planning Mobilisation for Facilities Mgmt 2 Engineering Infrastructure Asset Facility ready for operations Operations of assets Facilities Management (soft & hard services) Infrastructure Mgmt (Custodian) 3 Maintenance (including costing) Implementation Maintenance Plan Demobilisation Plan 4 Feedback to Portfolio Planning on the status of assets and cost of maintenance Feedback to Portfolio Planning on condition of assets and budget requirements for O&M U Amp (Immovable Asset Surrender Plan) from Strategic Planning) and C Amp Disposal Strategy from Portfolio Planning Property Mgt (Custodian) Condition Assessment Surveys Remaining Life Cycle Costing Demobilisation of Facilities Mgmt 5 Feedback to Project Implementation processes that assets are ready for Major Upgrades and Refurbishments Asset ready to be disposed of and feedback to U Amp and C Amp process namely Strategic Planning, Portfolio Planning and Project Implementation Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 9

10 Figure 2: Asset Operations and Maintenance Process Map Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 10

11 4. Asset Operations and Maintenance Processes O&M is the process of receiving assets into the portfolio of assets, managing and maintaining it over the life cycle and eventually demobilising the asset when required to be terminated. Excluded from Asset O&M are the strategy determination, portfolio planning, acquisition planning and acquisition implementation processes. Acquisition planning and implementation not only look at new assets but also assets that need to be upgraded, refurbished or renovated or assets to be disposed of. By definition, Asset O&M includes the day to day management of assets such as Facilities Management, Property Management and Engineering Infrastructure Management, all of which will require maintenance, costing and budgeting, and maintaining an asset register. Although Asset Disposal is seen as one of the life-cycle phases of an asset it does not form part of O&M. The physical disposal of an asset will be planned and executed by Projects whereas the demobilisation of facilities will be planned and managed by O&M. Demobilisation of facilities that are earmarked for upgrades, renovation or refurbishment will also be planned and managed by O&M and then handed over to Projects for the physical execution. The generic process of Asset O&M is covered by the following sub-processes: Asset recognition Mobilisation for Facilities Management Operations of assets Maintenance Demobilisation of Facilities Management 4.1 Recognise Asset and accept from Project The purpose of this process is to recognise the asset into the asset register and accounting system. Figure 3 below shows the breakdown of the sub-process Asset Recognition. Sub-process: Asset Recognition Trigger: Asset ready for handover Conduct physical handover review 1.1 Handover acceptance and documentation Notification to Project Implementation and Mobilisation team if Facility Enter asset information into asset register 1.2 Updated asset register and ready to be accessed and notification to O&M team Recognise asset into accounting system 1.3 Feedback to asset register and Portfolio Planning Figure 3: Sub-process: Asset Recognition Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 11

12 4.1.1 Sub-process 1.1: Accept the physical asset at handover The purpose of this sub-process is to ensure acceptance of the asset by O&M prior to the handover of the asset by the Contractor to Projects. This sub-process is subsequent to the Gate Approval (refer to the IDMS Gate 8) to handover the project from the Contractor to Projects, which also requires the input and acceptance by O&M staff and includes the following steps: Get prior warning of handover date from the contractor to projects Walk through and assessment of asset deliverables including serviceable systems Identify non-performance against asset operational requirements Establish snagging lists/defects Verify all required spares according to specifications Verify all requirement documentation such as O&M manuals and as-built drawings Verify vendor items and vendor information Give Projects the go-ahead to continue with the handover from the contractor. It is important that O&M takes part in the asset handover process and to ensure that all elements of the asset are exactly as what was specified and in a serviceable condition and that the complete set of documents is handed over. Although O&M will be aware of what assets are to be handed over (as indicated in the input document, namely the Acquisition Plan from the U-AMP (GIAMA 8.2)), they should also receive an early warning notice when the actual handover event will take place. Prior to the final and official handover of the asset at practical completion, the team consisting of Projects, O&M and the Contractor should have visited the site and agreed on completed elements as well as the non-completed elements including the snag list. This sub-process ends with the issuance of a go-ahead notice to Projects to complete the handover process from the Contractor Sub-process 1.2: Ensure that relevant information is captured into the asset register The purpose of this sub-process is to ensure that the required initial information on the new asset is captured into the asset register. (Please see Asset Register Guideline in the IDMS for the Asset O&M Delivery Process 3). The basic steps for this sub-process are: Obtain the required information for the asset register Validate information Enter the information into the asset register. It is important to capture the required and validated information in the Asset Register at the stage of handover and to ensure the physical or electronic storage of all documentation. The sub-process starts when Projects have submitted the final asset information to O&M and ends when the information is captured in the asset register. Important validated information that needs to be captured for accounting purposes is the final acquisition cost of the asset and the date of practical completion. The basic requirements for maintaining an asset register are also further explained in this module Sub-process 1.3: Recognise the asset into the accounting system Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 12

13 This sub-process starts when the general asset information is captured in the asset register and that Finances is notified as such. The basic steps are: Obtain asset value Obtain Asset identification info Verify and validate info Enter information into the accounting system. The sub-process ends when a confirmation notification is sent out from Finances that the asset is entered into the accounting system. 4.2 Mobilisation for Facilities Management The purpose of the process is to prepare a new facility for occupation and to ensure that all internal and Facilities Management (FM) service providers are ready and trained to manage the facility (asset). Figure 4 below shows the breakdown of sub-process Mobilisation. Sub-process: Mobilisation Trigger: Notification of successful handover Approved Infrastructure Programme Management Plan (IPMP) Mobilise user and custodian staff to manage asset 2.1 Facility/infrastructure staff ready to operate facility Early notification /confirmation to User and Custodian of date when facility can be occupied Ensure that Facility Management Services are in place Asset ready for occupation - FM services ready, Notification to User 2.2 Feedback to asset register and Portfolio Planning Figure 4: Sub-process: Mobilisation Sub-process 2.1: Mobilise user and custodian staff to manage assets This sub-process starts well in advance to ensure that the facility is ready at least one week before occupation to allow for unforeseen systems failures as well as to ensure that all FM staff are acquainted with what they should do. It includes the following steps: Identify user and custodian staff well ahead of the start-up of operations Place and train staff, ready to mobilise facilities management contracts and services. The sub-process is triggered by the following documents: Acquisition plan from U-AMP (GIAMA 8.2). Take note of the projected project completion (handover) dates and start planning accordingly Final notification when handover of facility will be completed and when access will be given to O&M Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 13

14 The final approved Infrastructure Programme Management Programme (IPMP). It is imperative that O&M continuously follow up with Projects on the expected date for practical completion and handover so that the planning and implementation of the mobilisation process can be completed in time for occupation. The sub-process ends with the notification of readiness of user and custodian staff to continue with mobilisation process Sub-process 2.2: Ensure that Facilities Management services are in place and operational The purpose of this sub-process is that the trained user and custodian staff now ensure that all FM contracts are in place and that the FM service providers have mobilised to conduct facilities management tasks and also to ensure that they have the skills and know-how how to manage and operate the building and other engineering systems and structures. Basic activities in this sub-process are: Obtain the projected practical handover and user occupation dates of facilities well in advance Conduct a facilities management services requirement Establish a Statement of Work and prepare tender documentation for facilities management services Follow the procurement process (See Practice Guide 2 of the Toolkit) to appoint facilities management service providers Appoint service providers after the tenders have been adjudicated and contracts have been awarded Conclude contracts (including signing thereof) Provide access to the facilities to the facilities management service providers Ensure via the contract the readiness of all soft and hard services at least 1 week prior to occupation by the user Notify user of readiness of facilities management services. Input to the sub-process is the Acquisition Plan from U-AMP (GIAMA 8.2), notification that the handover process is completed, the availability of all operating and maintenance manuals and that access to the facilities is given to O&M. The sub-process ends with all FM contracts in place, FM services providers are ready to manage FM and a notification is sent to the user that the facility is ready for occupation and use. Some of the areas that need to be ready prior to accepting tenants/clients in a facility are: Buildings are clean Furniture and equipment (e.g. movable fire fighting equipment) are placed Building systems are serviceable Building monitoring systems are working Building moving plant (e.g. lifts, escalators) are safe and serviceable Fires systems are working Signage is complete Facility Management support is available e.g. call desk Security is in place. The above is only a short list of systems that need to be put in place prior to full operations of an asset. Asset, Facility and Engineering Infrastructure Managers should acquaint themselves with all systems, subsystems, assemblies and components in order to be able to handle any emergency situation with regards to breakdowns or mal-functioning of systems. 4.3 Operations of assets Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 14

15 This phase entails the operational management of all assets and includes facilities management, engineering infrastructure management, property management, technical condition assessment surveys, maintenance of assets and remaining life cycle costing. Figure 5 below shows the breakdown of sub-process Operations of Assets. Sub-process: Operations of Assets Trigger: Handover of assets and completed mobilisation including Approved Infrastructure Programme Management Plan (IPMP) Conduct facilities management Maintenance Plans 3.1 U Amp (Operations Plan) from Strategic Planning and C Amp (Approved maintenance activities and cost) from Portfolio Planning Conduct engineering infrastructure management 3.2 Conduct Property Management Maintenance Plans Demobilisation Plans U Amp (Immovable Asset Surrender Plan) from Strategic Planning) and C Amp Disposal Strategy from Portfolio Planning 3.3 Conduct Condition Assessment Surveys 3.4 Provide remaining life cycle costing input to Portfolio Planning Conduct remaining life-cycle costing analyses Provide condition assessment results to Portfolio Planning O&M Asset Management 3.5 Figure 5: Sub-process: Operations of Assets (Please see U-AMP and C-AMP guidelines in the Roadmap for the DP 3 - Operations and Maintenance) Sub-process 3.1: Conduct Facilities Management The purpose of this step is to carry out the management of the facilities including planning and budgeting and includes the following activities: Ensure that the day to day soft services are done properly and that staff and their performance is measured and reported against the contract performance specifications Ensure that the hard services MEP (Mechanical, Electrical and Plumbing services) are being checked and kept serviceable at all times including HSE systems Identify and establish inspection plans as per the operating and maintenance manuals and check, test or replace asset systems, subsystems, assemblies or components Ensure that preventative (scheduled, routine) maintenance plans are drafted. (This could be service provider's task) Ensure that all breakdowns are being addressed immediately and repairs planned (depending on urgent or non-urgent requirements) Ensure that facility Condition Assessment Surveys (CAS) are being planned and conducted as per requirements. This CAS refers to the technical condition of the asset Ensure that soft and hard services including upgrades and refurbishments are being costed for the remaining life cycle of the asset Ensure that the required funds are allocated and that facilities management contracts are being placed to ensure continuation of services. Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 15

16 Inputs to this sub-process are: Notification of readiness for user to occupy facilities and that access will be given at a certain date Operations Plan from U-AMP (GIAMA 8.(3)) Maintenance activities required and approved budget from C-AMP (GIAMA 7.(5)) Immovable Asset Surrender Plan from U-AMP (GIAMA 8.(4)) Disposal Strategy from U-AMP (GIAMA 7.(6)) Final approved Infrastructure Programme Management Plan (IPMP). Outputs from this process are: Implementation of preventative maintenance and breakdown repair plan Facilities demobilisation plans Checking and inspection plans of all facilities assets Facilities management operations plans Facilities management budget requirements. Please refer to the Facilities Management (FM) Chapter in this Module for further information on the general aspects of FM Sub-process 3.2: Conduct Engineering Infrastructure Management The purpose of this step is to ensure the management of engineering infrastructure such as engineering networks and plant, not included under facilities and property management and that it includes the following activities: Establish plans when Condition Assessment Surveys (CAS) need to be conducted on engineering assets Conduct CAS s Establish a maintenance and repair plan for engineering assets Establish budget requirements Ensure funds get allocated to maintenance and repairs Ensure contracting (follow the procurement process as described in Practice Guide 2 of the Toolkit) with contractors to do the maintenance and repair Ensure maintenance and repair by contractors, check quality and measure contractor performance as per contract Establish a remaining life-cycle plan and compare and report against the original plan Cost the remaining life cycle and compare and report against original life cycle costing Provide feedback and reports on completed and outstanding work. Engineering infrastructure includes all engineering networks and plant within the boundaries of the property from the connection points on the property perimeter up to where utilities are taken into a building, which then becomes the responsibility of Facilities Management. The sub-process starts upon receipt of the following inputs: Notification of readiness for user to occupy facilities and that access will be given at a certain date Operations Plan from U-AMP (GIAMA 8.(3)) Maintenance activities required and approved budget from C-AMP (GIAMA 7.(5)) Immovable Asset Surrender Plan from U-AMP (GIAMA 8.(4)) Disposal Strategy from U-AMP (GIAMA 7.(6)). The sub-process ends with the following outputs: Implementation of preventative maintenance and breakdown repair plan Checking and inspection plans of all engineering assets Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 16

17 Engineering asset management budget requirements. Please refer to the Engineering Infrastructure Chapter in this Module for further information on the general aspects of engineering infrastructure management Sub-process 3.3: Conduct Property Management The purpose of this step is to conduct property management. This includes all other property aspects excluding that of Facilities Management and Engineering Infrastructure Management. The basic activities in this sub-process are: Ensure that property (including land) is acquired according to government requirements in a timely and cost effective manner Ensure that municipal rates and taxes, and utility bills are being checked for quantities and certified for payment Manage lease agreements in a cost effective manner (Lessor and Lessee) Ensure that the asset register is being maintained. This sub-process starts with the following inputs: Notification of readiness for the user to occupy the facility and that access will be given at a certain date Operations Plan from U-AMP (GIAMA 8.(3)) Maintenance activities required and approved budget from C-AMP (GIAMA 7.(5)) Immovable Asset Surrender Plan from U-AMP (GIAMA 8.(4)) Disposal Strategy from U-AMP (GIAMA 7.(6)). This sub-process ends with the following outputs: Updated land acquisition plan Analysis report on all utilities bills and consumption trends Updated leasing records and reports Updated asset register and reports of any non-compliance items and information in the register Sub-process 3.4: Conduct Condition Assessment Surveys The purpose of this sub-process is to ensure that CAS s are scheduled to take place at regular intervals as per GIAMA and that below standard assets are immediately addressed to improve the asset functionality and to bring it back to the original asset value if required. Although Condition Assessment Surveys (CAS s) refer to both functional and technical conditions surveys, this conditions assessment survey relates to the technical condition assessment survey only. This process includes the following activities: Ensure that the user conducts a perception technical condition assessment of all immovable assets occupied and that results are being reported in the U-AMP Establish a technical condition assessment plan with the aim to conduct the surveys on all assets staggered but within a period of 5 years Determine manpower requirements (professional, trained, skilled) to conduct the technical condition surveys as per the plan Budget and get funds approval to implement the technical condition assessment plan If required, establish a Statement of Work and tender documentation for the procurement process (follow procurement process as per Practice Guide 2 of this Toolkit) to appoint service providers to conduct assessment surveys Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 17

18 Conduct assessment surveys according to the plan and according to the specifications in the contracts and submit Condition Assessment Survey reports. The sub-process starts with the following inputs: Notification of readiness for user to occupy facilities and that access will be given at a certain date Operations Plan from U-AMP (GIAMA 8.(3)) Maintenance activities required and approved budget from C-AMP (GIAMA 7.(5)) Immovable Asset Surrender Plan from U-AMP (GIAMA 8.(4)) Disposal Strategy from U-AMP (GIAMA 7.(6)). The sub-process ends with the issuance of Condition Assessment Reports on all assets. Please refer to the Technical Condition Assessment Survey Chapter in this Module for further information on the general aspects of conditions assessment surveys Sub-process 3.5: Conduct Remaining Life-Cycle Costing The purpose of this step is to, during the Planning and Budgeting process (in the Portfolio Planning Module), conduct a complete life-cycle costing (LCC) from project initiation until the asset disposal stage including upgrades, refurbishment or renovations. This sub-process only addresses the costing of the remaining life of the asset and includes the following activities: Determine the cost elements of the remaining asset life Split cost elements into recurring and non-recurring capital investment costs and into operating sustaining costs Decide on the operating method and technology required to run technical systems for the remaining life. Determine cash flows for each costing element per annum and for the decided operating method. Cash flows should be presented in a specific time-value, namely either constant (real) money terms or current (nominal) money terms Conduct an optimisation analysis (best operating approach and technology for the least cost) and select the best remaining life solution per cost element For the remaining life selected operating solution and corresponding cash flows, determine the total annual cumulated cash flows Compare with original life cycle estimates and submit reports. The sub-process starts with the following inputs: Notification of readiness for user to occupy facilities and that access will be given at a certain date Operations Plan from U-AMP (GIAMA 8.(3)) Maintenance activities required and approved budget from C-AMP (GIAMA 7.(5)) Immovable Asset Surrender Plan from U-AMP (GIAMA 8.(4)) Disposal Strategy from U-AMP (GIAMA 7.(6)). The sub-process ends with the issuance of the remaining life-cycle costing reports on all assets. Please refer to the Remaining Life-Cycle Costing Chapter in this Module for further information on the general aspects of life-cycle costing. 4.4 Maintenance of Assets The purpose of this sub-process is to attend to the execution of maintenance plans, primarily preventive maintenance, and also the repair of breakdowns. Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 18

19 Please refer to the Maintenance Chapter in this Module for further information on the general aspects of maintenance. Figure 6 below shows the breakdown of sub-process Maintenance of Assets. Sub-process: Maintain Assets Trigger: Maintenance Plan Conduct Preventative (Servicing) Maintenance 4.1 Feedback to Operations (Facilities Management, (Engineering Infrastructure Management) and Portfolio Planning. Update d log Trigger: Unforeseen breakdown Conduct Breakdown Repairs 4.2 Feedback to Operations (Facilities Management, (Engineering Infrastructure Management) and Portfolio Planning. Updated log Figure 6: Sub-process: Maintenance of Assets Sub-process 4.1: Conduct Preventative (Servicing) Maintenance The purpose of this step is to attend to the implementation of the preventative maintenance plans. Instruct the maintenance service provider to implement the preventative maintenance plan Ensure records and warranty documentation for all maintenance completed Monitor performance of the service provider as per contract Consolidate monthly maintenance activities, analyse and submit a monthly preventative maintenance report. The sub-process starts with the following inputs: Notification of readiness for user to occupy facilities and that access will be given at a certain date Operations Plan from U-AMP (GIAMA 8.(3)) Maintenance activities required and approved budget from C-AMP (GIAMA 7.(5)) Immovable Asset Surrender Plan from U-AMP (GIAMA 8.(4)) Disposal Strategy from U-AMP (GIAMA 7.(6)). The sub-process ends with the issuance of preventative maintenance reports Sub-process 4.2: Conduct Breakdown Repairs The purpose of this sub-process is to attend to the work to be undertaken when a sudden breakdown of a system or damage to an asset has been reported. It includes the following activities: Accumulate reports on breakdowns and establish a monthly prioritised repair schedule Instruct the repair service provider to repair breakdowns as per the schedule Ensure records and warranty documentation of all repairs completed Monitor performance of the service provider as per contract Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 19

20 Consolidate monthly repair activities, analyse and submit a monthly breakdown repair report. This process starts with the following inputs: Notification of readiness for user to occupy facilities and that access will be given at a certain date Operations Plan from U-AMP (GIAMA 8.(3)) Maintenance activities required and approved budget from C-AMP (GIAMA 7.(5)) Immovable Asset Surrender Plan from U-AMP (GIAMA 8.(4)) Disposal Strategy from U-AMP (GIAMA 7.(6)). Critical breakdown should be addressed and repaired as soon as possible (depending on the impact on the functionality of the asset and should not be added to the list of repairs that will be included in the maintenance plan to be repaired at a later stage i.e. to become a planned activity). This sub-process ends with breakdown repair reports. 4.5 Demobilisation of Facilities Management Demobilisation of Facilities Management is required for assets that will be disposed of as well as assets earmarked for upgrades, refurbishments or renovations. This process refers to the demobilisation of facilities/engineering plants. Figure 7 below shows the breakdown of sub-process Demobilisation. Sub-process: De-mobilisation Trigger: De-mobilisation plan De-mobilise user and custodian staff as well as asset 5.1 Notification to Operations Asset Management team, users and custodians that facility/asset has been demobilised and ready for Disposal Upgrade Refurbishment Renovation Figure 7: Sub-process: Demobilisation Sub-process 5.1: Demobilise Facilities Management The purpose of this step is to ensure the removal of staff and shut down of selected systems prior to the start of the disposal process or upgrades or refurbishments of an asset and includes the following activities: Establish a demobilisation plan after receipt of notification of an asset to be disposed of or to be upgraded/refurbished Implement demobilisation plan and if required removal and storage of re-usable items and systems Notification of readiness to hand over asset to Projects Handover of asset to Projects with a stock/inventory/equipment list and condition thereof Acceptance by Projects of asset from handover by O&M. The sub-process starts with the following inputs: Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 20

21 Immovable Asset Surrender Plan from U-AMP (GIAMA 8.(4)) Disposal Strategy from U-AMP (GIAMA 7.(6)) Demobilisation plan. This process ends with the notification that a facility (or engineering plant) is demobilised and that it is ready to be handed over to Projects from Operations. 5. Asset management team general activities The asset management team consists of, for example, the asset manager, facilities manager, engineering infrastructure manager and a property manager. Below are typical activities the asset management team needs to execute. 5.1 Planning of tasks/activities It is important that facility and engineering infrastructure managers plan the day-to-day as well as longer frequency activities such as inspections, services and replacement of critical spares/components as per operating and maintenance manuals. Some of the planning tasks are: The tender process to contract service providers Preventative maintenance and timely replacement of critical spares Procurement of critical spares, storage and inventory control thereof Monitoring and controlling performance of service providers The handling of complaints Prioritising repairs Meeting with HSE and users in order to continually monitor health, safety and environmental aspects Building condition assessment. The above are some of the planning issues that the asset management team needs to consider on a daily/weekly basis in order to act proactively and to ensure proper functioning of all building and infrastructure assets. 5.2 Execution of tasks/activities From a management point of view, it is important that minutes and other records (except asset information - to be discussed in the following paragraph) are being kept, especially on meetings and discussions between the asset management team, service providers and users/customers/tenants. As far as possible there should be feedback to the stakeholders on: Work/tasks carried out on a weekly/monthly basis Contractor/service provider performance Customer/client/tenant satisfaction Functioning of all key systems Managing of all staff related to asset management including the staff of service providers Monitoring of work. Mangers should be able to schedule all work distinguishing between daily, weekly, monthly and other required actions. Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 21

22 5.3 Logging of performance and task results It is important to keep record of all repairs and breakdowns of system, subsystems, assemblies or components, of which at least the following information should be captured: Asset number Subsystem System Assembly Component Date What was done/replaced? Time taken to repair Level of disruption Contractor providing spares or repairing the system. The reason for the above is to build a record of asset breakdowns and incidents which can be analysed, and to build trends and other supporting information on which decisions can be made with regards to changing vendors, material, products or systems. 5.4 Analysis of data It is important to analyse all data related to the assets such as: Service providers, the cost of their services and the level of performance Mean time between failures of systems Mean time to repair Types of failures Utility bills (cost and quantities). The aim of the analysis is to identify areas where failures/breakdowns happen too frequently or, for example, where there is a sudden increase in utility usage and then to identify the cause of the problem and to make recommendations on how to improve the situation. The results of the analyses should be communicated to all stakeholders, for example: Strategic and portfolio management to highlight negative results within a specific range of assets Asset managers to take cognisance of failed systems/material and to inform engineering/architectural consultants so that the specifications of any new assets could be amended Staff/tenants notifying them of unnecessary consumption of energy Vendors to change specifications or designs. 5.5 Corrective action/improvement The Asset Management team should immediately react upon the results of the above analyses with the aim to identify and implement corrective actions that will ensure proper functioning of all building and engineering systems. It is important to action these improvements in a formal way and to close the activity once completed and accepted. In general, feedback from users should be captured in order to establish the level of satisfaction after the improvement has been implemented. 5.6 Feedback Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 22

23 The asset management team should design and implement a proper feedback and communication system with the aim to disseminate information related to Asset O&M to all internal as well as external stakeholders, users and service providers. The aim is to ensure knowledge of the status of the assets is captured and to enhance continuous improvement of performance. 6. Acquisition of assets Acquisition of assets refers to the acquisition of land, facilities/buildings and engineering assets such as engineering networks and plant of which the result means ownership of the asset. 6.1 Acquisition of land Although acquisition is planned and executed by departments other than Asset O&M, the following generic activities are required to ensure readiness of land in order to build/construct/install an asset: Preparation to expropriate - the property to be expropriated is identified based on the rationale for expropriation, the notice of intention to expropriate is published and served on the owner and known holders of rights; information about the property is gathered; everyone, including the holders of unregistered rights, is afforded the opportunity to comment Determination of compensation the expropriation authority should endeavour to reach agreement on compensation with owners and holders of rights, based on an assessment of fair value by registered valuers, endorsed by the Land Affairs Board Conduct expropriation - the expropriation authority will take the decision to expropriate based on the principles of administrative justice, serve notice of expropriation on the owner and holders of rights (including unregistered rights) and take ownership and possession of the property Determination of compensation through a court should the expropriation authority fail to reach an agreement with the owner/holder on compensation, a court may be to determine the amount of compensation Ensure accurate property information on the asset register. 6.2 Acquisition of immovable assets other than land Acquisition of other immovable assets other than land is the function of other departments and functions but nevertheless requires input from the Asset O&M team. Some of the aspects and information flow needed prior to and during the acquisition process are shown below: Lessons learnt and new requirements for typical buildings and infrastructure and associated technologies especially from facility managers and infrastructure managers To continuously request information from Projects with regards to changes in designs and progress on the project made. It is important to know when an asset will be handed over from the contractor to the asset manager The asset management team should be involved in the hand over process and with finalising the defects list The preparation in providing insurance underwriters with the correct and appropriate information if the asset is needed to be insured. Ensure the initiation of a mobilisation process even before the handover of the asset so that the asset can be utilised and occupied as planned with all systems and services ready and working. 7. Disposal of assets The decision to dispose of an asset is taken at strategic and portfolio level but based on input given by the asset management team. The asset management team will be responsible to plan for the demobilisation of services but the Project team will be responsible for the specification and contracting Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 23

24 for the final demolishing of the asset and reinstating the land (if required) to environmental minimum standards. Although a final stage/phase in the product (asset) life cycle, an asset manager needs to take the following into consideration when planning for the disposal of an asset and providing advice to other functions: Plan to dispose of assets identified for disposal in C-AMP (timing & methodology) Cause minimum disposal value to be determined and approved in terms of the State Land Disposal Act, 1961 and the Land Affairs Act, 1987 (National) or relevant Provincial Land Administration Act (Provincial). Develop the disposal brief (all disposals) and the specification for bid process, except in the case of inter-governmental transfer. (Bid process should ideally be performed by SCM Unit with input from Property Management) Monitor the implementation and adherence of the conditions of contract and raise debtor invoice Initiate corrective action where required Ensure accurate update of the asset register. 8. Asset Hierarchy It is important to categorise assets into an asset hierarchy according to which information can be captured in an asset register and also according to which records could be kept on operations and maintenance aspects. Below is an example of how assets could be categorised: At the highest level is the facility/complex, which will include the land, engineering infrastructure as well as all buildings The total land parcel could be divided into separate land pieces An engineering asset/system could be divided into the following categories o Engineering asset: pump room Engineering system: pump system Engineering subsystem: a pump o Engineering assembly/component: a flange A building asset could be divided into the following categories: o A building: office block A building system: The fire system A building subsystem: fire detection o Assembly/Component: a sensor. 9. Technical Condition Assessment Surveys During the operations period of an asset, continuous condition surveys (ideally every two to three years but within a 5-year period according to GIAMA) need to be conducted and the results logged for further use in preparing the User Asset Management Plan (U-AMP) and Custodian Asset Management Plan (C- AMP). It is important to have updated data on the condition of all assets and to analyse this data with the aim to maintain assets at the required condition levels and functionality and to improve conditions where required. Condition surveys should be planned and scheduled and should form part of the functions of the Asset Management team s responsibilities. Condition surveys should cover all assets i.e. buildings/facilities, engineering infrastructure and all systems, subsystems, assemblies and components related to these assets. It is further important that assets are identified and tagged according to an asset hierarchy and that results of these condition surveys are clearly be linked to this asset identification and tagging. Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 24

25 10. Asset management elements of Operations & Maintenance In general, the operational management of assets is divided into Facilities Management and Engineering Infrastructure Management and should be managed by the asset management team as described in the paragraphs that follow Facilities Management Introduction Facilities Management (FM) focuses on the day to day management of facilities such as office blocks, clinics, schools and all buildings where there is a building system and a human being interface. Facilities management includes: Facilities Management Hard Services - such as planned preventative maintenance, servicing and repairs and often referred to as MEP (Mechanical, Electrical and Plumbing) systems within a building or facility. All maintenance work on building systems rests under Hard Services Facilities Management Soft Services - such as cleaning, catering, security, fire safety, waste management, reception services, etc. Other important aspects of Facilities Management are: Technical assurance to ensure achievement of value for money and to comply with relevant regulatory measures and client objectives FM links to the procurement process (procuring/contracting services - (see Practice Guide 2 of the Toolkit) FM could, but for Government generally does not, include typing, secretarial services, corridor copying, switchboard, fleet administration, shuttle bus and postal services (post opening, internal distribution and post despatch) FM services can be supplied by a managing agent or several direct providers. Services can be all inclusive, bundled according to organisational needs or acquired on a single service provision basis It is the role of the facility management function (whether it is a separate department or small team) to coordinate and oversee the safe, secure, and environmentally sound operations and maintenance of these assets in a cost effective manner aimed at long-term preservation of the asset value Services such as occupational health, safety and environmental management are usually monitored and inspected by HSE (Health, Safety & Environment) officials but it will be the responsibility of the FM team to ensure that systems are functioning as required and to comply with minimum HSE standards and statutory requirements The function of business continuity planning is usually given to the risk manager who will then liaise with the FM team on building system continuity aspects. Business continuity with regard to information management will be the responsibility of the IT department and not FM Facilities Management: Soft services A check list of the most important soft services is given below and the users are advised to use it accordingly to ensure that all aspects of Soft Services are being addressed at all times and as per the requirements by the Asset Management team: Internal cleaning o Toilets Delivery Management Guidelines: Delivery Guide 3 - Operations & Maintenance 25