case study Water Aroona Alliance The Good to Great journey through engaging partnerships
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1 Aroona case study Water Alliance The Good to Great journey through engaging partnerships
2 type of contract Operation, Maintenance and Asset Management CONTRACT DURATION Aroona Alliance Western Australia ESTIMATED population served 1.9M Perth
3 the Good to Great journey through engaging partnerships Two Rocks WWTP Alkimos WWTP Neerabup WTP Beenyup AWRP Gwelup WTP Beenyup WWTP Wanneroo WTP Lexia WTP Mirrabooka WTP Bullsbrook WWTP Mundaring WWTP As the principal supplier of water and wastewater services to hundreds of thousands of homes, businesses and farms in Western Australia, the Water Corporation continually develops and implements innovative ways to deliver services to its customers. Woodman Point WWTP Subiaco WWTP Kwinana WRP PERTH Jandakot WTP Kwinana WWTP Through various research, the Water Corporation found that an integrated delivery model engaging partnerships proved to be the most suitable method with the current economic climate. East Rockingham WWTP Point Peron WWTP In July 2012, Aroona Alliance consisting of a partnership between Water Corporation, SUEZ and Broadspectrum was selected to deliver water and wastewater services in the Perth and Mandurah area. SUEZ and Broadspectrum brought to the Alliance their unique global expertise and local experience to drive operational efficiencies and deliver cost savings to the Water Corporation. Halls Head WWTP Gordon Road WWTP MANDURAH Wastewater Recycling Plants Groundwater Treatment Plants Wastewater Treatment Plants Caddadup WWTP Pinjarra WWTP water treatment plants (726MLD) 6 GROUNDWATER treatment plants 13 Surface WATER treatment plants WASTE WATER treatment plants (430MLD) ADVANCED WASTE WATER recycling plants
4 outlined within the contract are Aroona s backbone in everyday operation Zero harm Improving safety performance Water and wastewater services and compliance Delivering quality service and meeting compliance targets Asset management Improving maintenance planning, asset assessment, capability planning and asset acquisition People capability Developing employees skills, know-how and engagement, succession planning, knowledge transfer and knowledge retention Value for money and efficiency Achieving capital and operational expenditure targets in a sustainable manner Information management Providing accurate and reliable data promptly implementing the Good to Great strategy After the first year of operation, in early 2014, Aroona launched the five-year Good to Great strategy. The strategy outlines goals including stretch goals to challenge Aroona s management and team members to deliver beyond the contractual requirements. To provide a measurable KPI, a five-year sustainable savings of AUD 25M was also committed within the strategy. The strategy encourages ideas and innovations across the team at all levels and from different areas to drive improvements. Specific approaches by area and action plans have been developed and implemented to achieve these goals. They are reviewed on a regular basic to proactively respond to the evolving economic climate. As part of the Good to Great strategy, Business Improvements are initiatives intended to improve the Alliance s performance and efficiency. These includes various projects structured into different areas including: Building an integrated O&M model Automation and control Optimised maintenance program Process optimisation Energy savings and recovery Procurement Better Ways Head office functions review Delivering additional services External business improvements Most importantly, the strategy is communicated throughout the business to ensure every team member talks about it and plays a role in the successful delivery of this strategy.
5 a commercial framework embracing a one-team culture Sue Murphy, CEO of the Water Corporation said in Aroona s 2014/2015 Value for Money report The success of any alliances can only come about when all parties share common goals and values. To effectively deliver the service, Aroona embraces a Oneteam Culture through a Performance based Agreement. It defines a set of criteria and measurable KPIs across operational and financial performance. Aroona s annual budget is always reviewed for every Financial Year to ensure a minimum of 2% efficiency. This Agreement allows SUEZ, Water Corporation and Broadspectrum to work collaboratively to achieve the Service Objectives. In addition to this Agreement, Aroona operates based on a Risk/Reward mechanism. This anables the partners to share common benefits as well as risks of the Alliance s performance. This collaborative framework engages cohevise team work by setting common goals, responsibilities and budgets to deliver successful outcomes. sustainable savings Sustainable savings (one year value in M$) FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 Good to Great Good to Great (cumulative) Contractual requirement Contractual requirement (cumulative) business improvements Aroona s five-year sustainable savings objective $25M Building an integrated O&M model Automation and control Optimised maintenance program Process optimisation Energy savings and recovery Procurement Better Ways Head office functions review Delivering additional services External business improvements
6 meeting Water Corporation s expectations and delivering value for money AUD $16M of cumulative sustainable savings was achieved at the end of the financial year 2014/15. Aroona delivers high quality water and wastewater services to residents of the Perth and Mandurah area. In 2015, Aroona achieved 100% compliance of the drinking water quality index, beyond a target of 91%. Across the wastewater service, in that year, the Alliance reached a target of 100% compliance of wastewater quality index. Aroona has been successfully fulfilling the Department of Environment Regulation s requirements at its wastewater treatment plants. Through the Good to Great strategy, Aroona continues to present sustainable savings. After two years, great results have been achieved across all areas. Significantly, at the end of the 2014/15, almost 5% of cost savings was obtained. This represents approximately AUD 16M of cumulative sustainable savings since the commencement of the Alliance. Working safely and keeping everyone safe are always at Aroona s heart. Until June 2015, Aroona has considerably improved the safety results. In particular, the Significant Injuries Frequency reached 0 in September and October Water sampling
7 Water CORPORATION - TESTIMonIal As the Corporation s Representative for this Alliance, I am delighted to see the continued progress being made in so many areas. OSH performance is very good and achieving all the key performance indicators, and this is in good part due to the work done to develop the safety culture in the Alliance. Our most fundamental position in business should be to ensure our people, contractors and others around our work areas can undertake their activities and not be harmed. I congratulate the Alliance on its good work to date and encourage a strong continued focus in this area. The Aroona Alliance has continued to identify and implement many business improvement initiatives as a result of which significant savings have been achieved. While I recognise that a lot of this has come from staff I can t help but think and recognise the contribution of our Alliance partners and the learnings they have been prepared to share. I am delighted that we are continuing to identify opportunities for efficiencies where we already thought we were fairly efficient. This clearly shows the value the Corporation was hoping to achieve in establishing the Alliance. Congratulations on another very good year the bar is set high. May you continue to reach it. Peter Moore General Manager Operations Water Corporation Beenyup Wastewater Treatment Plant
8 Printed on 100% recycled paper created entirely from post consumer waste, using vegetable oil based inks and an alcohol-free ISO certified printing process. SUEZ Australia & New Zealand Level 3, 3 Rider Boulevard RHODES NSW 2138 Australia State Offices QUEENSLAND 28 Weyba Street Banyo QLD 4014 SOUTH AUSTRALIA 133 Cormack Road Wingfield SA 5013 WESTERN AUSTRALIA 116 Kurnall Road Welshpool WA 6106 IMAG02121
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