Asset Management Utility Management The Connection

Transcription

1 MWEA/MI-AWWA AM Seminar 2019 Asset Management Utility Management The Connection Tom DeLaura, PE Connector DeLaura Consulting January 24, 2019

2 The Connection? As we go through these presentations find your perspective of what AM is, and prepare to explain it Recognize how that connects to Utility Management 2

3 AIM Committee here to serve Know what s been done (resources) Ask for what you wish to see Connect with peers in similar situations 3

4 AM is all about Money Provide Visibility Inform on performance, conditions, risks, costs, reliability starts the necessary culture change Assign Costs of Ownership Labor and materials associated with the correct assets Justifying CIP Planning and O&M Programming based on actual condition and performance Eliminate Surprises By planning for them

5 How do you manage? Balanced Scorecard Triple Bottom Line Another way? AM provides the justification, the data, the facts, etc. - to accomplish your plans 5

6 Step 1 - Define Assets in AM AM has been defined a lot of ways, and by a lot of people Assets can be everything you use to accomplish your mission Begin every conversation on AM with a common ground on definitions Resources exist to create your definitions 6

7 Asset Management depends on your perspective on your

8 Assets (at some level of detail and relationship ) Vertical Linear Facilities/Buildings Vehicles/Equipment People Money Documentation Knowledge Others? 8

9 Over 20 years ago. The manual starts with basic asset management principles and works through to practical steps for implementing advanced asset management systems within your organization. The manual contains sections outlining asset management practice in NZ, AUS, SA, UK and US. Loaded with informative case studies, and presented in a easy to use format, the International Infrastructure Management Manual is the ultimate reference document for any asset manager. 9

10 Asset Management Lifecycle Manage the entire life of assets 10

11 Managing Public Infrastructure Assets 2001 NACWA (AMSA), AMWA, WEF, AWWA 11

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13 EPA s Five Core Questions 1. What is the current state of my assets? 2. What is my required level of service (LOS)? 3. Which assets are critical to sustained performance? 4. What is my best O&M and CIP investment strategies? 5. What is my best long-term funding strategy? 13

14 EPA s 10 Step Process 14

15 Triple Bottom Line 15

16 MWEA/MI-AWWA AM Seminar 2019 Affordability

17 MWEA/MI-AWWA AM Seminar 2019

18 Role of Performance Management Plan Do Check - Act Vision Mission Goals Strategic Plan Corrective Action Resources Accountability Tools Training Implementation Plan Execution Communication Performance Measures 18

19 What are Effective Metrics? Those which monitor performance against pre-established targets or industry standards. If you don t know where you are going, and you don t know how you are doing, you won t know if you ever get there! 19

20 Lord Kelvin said it first When you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind. Measure what counts. Measure what you can control. 20

21 Effective KPIs Objective Balanced Defined Targets for Levels of Performance Linked to Strategic Plans Supported by All Follow Industry Standards Sustainable (as defined by the KPIs) 21

22 MWEA/MI-AWWA AM Seminar 2019 Effective Utility Management

23 Attributes of the Best Managed Water Sector Utility Management Strategy - created in March 2007, by seven Collaborating Organizations Water Environment Federation (WEF) National Association of Clean Water Agencies (NACWA) United States Environmental Protection Agency (EPA) Association of Metropolitan Water Agencies (AMWA) American Public Works Association (APWA) American Water Works Association (AWWA) National Association of Water Companies (NAWC) 23

24 Effective Utility Management

25 The 10 Attributes Product Quality Customer Satisfaction Employee and Leadership Development Operational Optimization Financial Viability Infrastructure Stability Operational Resiliency Community Sustainability Water Resource Adequacy Stakeholder Understanding and Support 25

26 MWEA/MI-AWWA AM Seminar AWWA Utility Benchmarking This publication is made possible by AWWA Utility Benchmarking Program Participants, and it allows utility managers to use data and analyses to determine how their utility s performance compares to the water or wastewater industry. The report includes performance indicators for five areas of operations: Organizational Development, Customer Relations, Business Operations, Water Operations, and Wastewater Operations. The 2018 publication includes 54 key performance indicators.

27 Benchmarking vs. Performance Management Performance Management - The process of monitoring organizational performance against pre-established targets. 10 Lost & Unaccounted For Water Regulatory Guideline (%) Utility Target Industry Standard How are we doing?? Best Practice 27

28 Organizational Development (contents) Organizational Best Practices Index (AM) Employee Health & Safety Severity Rate Training Hours per Employee Customer Account Ratios 28

29 Organizational Best Practices - Measured by 7 Mgmt Practices Strategic Planning Long-term Financial Planning Risk Management Planning Cohesiveness in Measures Optimized Asset Management Performance Measurement Customer Involvement Continuous Improvement 29

30 Moneyball 30

31 What are the Best Performance Measures? 20 Triple Doubles/Year 1.7 ERA.8851 Save Percentage 8 Minute Mile 98 Bowling Average 52 Hit by Pitch 5 Stanley Cups 31

32 Performance Measures Matter 200 vacancies 25 breaks / year 45% preventive/reactive maintenance ratio Avg. 98 days to hire 2.5% turnover rate A+ bond rating 32

33 Performance Measures Matter 90% response time in less than 45 minutes 7 days emergency storage capacity Avg. 45 seconds/customer call $25/year/customer on public education $350/MG treated water cost 33

34 What are your peers doing? A recent presentation brought AM results that requested changing a current level or replacing 3 miles/year of main to 8 miles/year based on heat maps and water quality reports, as it referenced a nationally recognized measure of an optimized utility having 15 breaks/100 mi/yr It showed a fully vetted analysis of what needs to be done and that there were factors outside of age, or even pipe type, that justified adjusting plans and budgets 34

35 Keep Perspectives Balanced Financial Perspective How do we look to stakeholders? Customer Perspective How do we look to customers? Balanced Scorecard Goals & Measures Internal Business Perspective What must we do to excel? Innovation & Learning Perspective Can we continue to improve and create value? Source: The Balanced Scorecard Kaplan & Norton 35

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40 Asset Management is Utility Management You ve always been doing AM, you just didn t call it that Make your definition of Asset Management AM is not shelfware a report, a plan; it is your lifestyle KPIs that align with plans and achieve objectives Plan with open eyes and an informed perspective, and connect your plans in cohesive actions and common goals Act with confidence 40

41 AM is Utility Management CIPs/O&M budgets justified Perspectives are balanced Provides answers to Did you know..? Use today as reference points while you gather perspectives from your peers 41

42 Asset Management is Utility Management Inform your perspectives, beginning with higher perspectives, and adjust the amount of detail as you hear from peers, and change the culture on capturing data that can better match goals to realities Adjust, as you progress Prepare: CIPs; O&M; Strategic Plans that are structured as required/expected, based on factual data, to communicate needs, and open the dialog on how to reach common goals (health, safety, service) 42

43 MWEA/MI-AWWA AM Seminar 2019 Thank You Tom DeLaura