Asset Management Plans Within the Framework of the IIMM and ISO 55000

Transcription

1 Asset Management Plans Within the Framework of the IIMM and ISO Water Infrastructure Conference Bethesda, Maryland October 13, 2015

2 What is an Asset Management Plan?. Long-term plan (usually years or more for infrastructure assets) that outlines the asset activities and programs for each service area and resources applied to provide a defined level of service in the most effective way. Documented information that specifies the activities, resources and timescales required for individual asset, or grouping of assets, to achieve the organization s asset management objectives.

3 The Asset Management System Hierarchy Agency s Strategic Plan Asset Management Policy Strategic Asset Management Plan Asset Management Plans Establishes the organization s vision, mission, goals and objectives Communicates its direction, resource priorities and actions needed to achieve its goals and objectives, typically over a 5 to 10 year period Articulates leadership s commitment to AM and to continual improvement Provides expectations and direction for mandatory requirements for AM Defines the key principles that underpin AM within the Utility Sets out the roadmap for implementation of the Policy Identifies the AM objectives Establishes the AM framework Sets out the specific lifecycle activities to deliver the AM objectives Outlines the long-term plan for assets, including service expectations, timelines and funding, and resource requirements

4 The Asset Management System Hierarchy Agency s Strategic Plan Asset Management Policy Strategic Asset Management Plan Asset Management Plans Establishes the organization s vision, mission, goals and objectives Communicates its direction, resource priorities and actions needed to achieve its goals and objectives, typically over a 5 to 10 year period Articulates leadership s commitment to AM and to continual improvement Provides expectations and direction for mandatory requirements for AM Defines the key principles that underpin AM within the Utility Sets out the roadmap for implementation of the Policy Identifies the AM objectives Establishes the AM framework Sets out the specific lifecycle activities to deliver the AM objectives Outlines the long-term plan for assets, including service expectations, timelines and funding, and resource requirements

5 What is the purpose of an AMP? Document the activities to be implemented and the resources needed to meet the AM objectives Link the AM strategy to the work on the ground Describe the current state of the assets An Asset Management Plan can be developed to address: Individual assets Asset groups/systems Asset class Asset portfolio Identify planned actions and activities to ensure the assets are providing the expected service levels Support funding requirements and provide input to longterm financial plans

6 What are the ISO requirements for an AMP? The organization shall establish, document and maintain asset management plan(s) to achieve the asset management objectives. Explicit requirements (ISO 55001): AMP(s) shall be aligned with the AM policy and the SAMP (ISO 55001, 6.2.2) The organization shall ensure that the AMP(s) take(s) into account relevant requirements coming from outside the AM system The organization shall provide the resources required for meeting the AM objectives and for implementing the activities specified in the AMP(s) The organization shall integrate the planning to achieve AM objectives with other organizational planning activities including financial, human resources and other support functions

7 Also consider the guidance from ISO when developing the AMP(s) Define the activities to be implemented and the resources to be applied to meet AM objectives Provide the rationale for AM activities incorporating O&M Plans Capital investment plans Financial plans Resource plans Clearly define responsibilities for developing and implementing the AMP(s) Conduct periodic review to ensure alignment with objectives Asset Management Plans should be appropriate to the organization and to the sophistication of their AM approaches.

8 Also consider the guidance from ISO when developing the AMP(s) (continued) Consider the audience and what they need to know Embed and include risk ranking and criticality assessment approaches Consider risks during the organization s period of responsibility and any residual risks beyond the operation or use of assets Define and adopt a common methodology for determining the financial implications of the AMPs Consider lifecycle cost, recognizing that AMPS include decisions that have short-and long-term effects across all lifecycle stages

9 The IIMM provides step-by-step guidance for developing AMPs Identify Objectives Who is the audience? Board? Management? Technical staff? Public? What will they want to know and what do they need to know? What level of the AMP are you aiming for Minimum, Core, Intermediate or Advanced? What are the key corporate assumptions, financial parameters, growth forecasts? How will the AMP link with corporate objectives and drive operational ones? Decide the Approach Consider whether to develop an early first cut AMP base on existing information; or To initially focus on improving underlying data and processes and delay the development of the first AMP Develop AMP Template What level of detail is required? Decide the scope and structure of the AMP by asset type (e.g., separate plans) How much corporate commonality is required (i.e., should all activities follow a strictly similar template? Write the AMP Decide who will author each section Clearly state assumptions and confidence in the underlying info Prepare the financial section last should be the final output Stakeholder input at all steps Review the AMP Consider having an independent person review the AMP Consider the ability to meet specific disclosure Reviewer should ideally contribute to the AMP improvement section Maintain the AMP Treat the AMP as a live, dynamic document Update AMP when \assumptions change Update AMP coordinated with organization s planning processes

10 The IIMM offers an example of a structure for AMPs 1. Executive Summary 2. Introduction 3. Levels of Service 4. Future Demand 5. Lifecycle Management Plan 6. Financial Summary 7. Plan Improvement and Monitoring 8. References 9. Appendices There is no single correct way to structure AMPs Whatever structure is followed, the AM P should be fully integrated into corporate business planning frameworks and contain sufficient information to support and justify the longterm programs and financial forecasts which are a key output of AM planning. IIMM

11 1. The Executive Summary emphasizes the key issues contained in the AMP 1.1 Purpose of the Plan A statement or list of the reasons for the AMP 1.2 Asset Description Summary of the assets covered by the AMP 1.3 Levels of Service Summary of the LOS and performance measures and how they were set 1.4 Future Demand Factors influencing future demand and impact of changing demand on the assets 1.5 Lifecycle Management Plan Summary of lifecycle management strategies (O&M, disposal, etc.) 1.6 Financial Summary Long-term cashflow projections for each significant asset group and sources of funding 1.7 Asset Management Practices 1.8 Monitoring and Improvement Program Summary of AM data, information systems, processes for decision-making and implementation tactics Summary of how performance will be monitored, actions to improve accuracy & confidence and timetable for review

12 2.The Introduction provides an overview of all the AMP s elements & reason for the AMP 2.1 Background Purpose of the AMP; relationship with other planning documents; assets included; key stakeholders; organizational structure 2.2 Goals &Objectives of Asset Ownership 2.3 Plan Framework 2.4 Core and Advanced AM Reasons and justification for asset ownership; links to organizational vision, mission, goals & objectives Key elements of the AMP Sophistication and limitations of the AMP AMP Maturity Index (source: IIMM)

13 3. Levels of Service 3.1 Customer Research and Expectations 3.2 Strategic and Corporate Goals 3.3 Legislative Requirements 3.4 Current Level of Service 3.5 Desired Level of Service Customer research undertaken and proposed; details of how knowledge of customer requirements has been considered in setting levels of service Organizational strategic goals and impacts on levels of service Background legislation or regulations which affect asset operation or require certain levels of service Define current levels of service being provided by the asset (or asset group); identify related performance measures Provide details on LOS desired if different from what is being provided and what options have been considered in determining that LOS; detail differences between current and desired LOS and how gaps will be progressively closed

14 4. Future Demand section describes the drivers impacting the management & utilization of assets 4.1 Demand Drivers Factors influencing demand; anticipated changes in customer expectations, changes in technology, population and economy, etc. 4.2 Demand Forecasts 4.3 Demand Impacts on Assets 4.4 Demand Management Plan 4.5 Asset Programs to Meet Demand Details of projected growth or decline of demand for services Impact of changes in demand on asset utilization Non-asset solutions available as alternatives to assetbased solutions (i.e., demand management, insurance, managed failures Major programs and costs (with details in Section 5)

15 5. Lifecycle Management Plan focuses on meeting LOS at the lowest lifecycle costs at acceptable risk 5.1 Background Data Description of asset: attributes and characteristics; condition; capacity and performance; valuations; historical data including past expenditures 5.2 Infrastructure Risk Management Plan Description of risk framework; consequence and likelihood determinations; high risk assets; risk management strategies; 5.3 Routine O&M Plan Reliability trends and issues; maintenance decisionmaking process; prioritization criteria; 5.4 Rehabilitation & Replacement Plan 5.5 Creation/ Acquisition/ Augmentation Plan End of life projections; R&R decision-making process; risk mitigation; prioritization method; forecast of R&R projects and cost; impact of deferrals Selection criteria; capital investment strategies; project management procedures; QA/QC; risk management; future needs based on demand; funding strategy 5.6 Disposal Plan Forecast of future needs; income/expense forecast

16 6. The Financial Summary contains the financial requirements resulting from the needs for previous sections of the AMP 6.1 Financial Statements and Projections Cashflow forecasts by year (for 10 years); breakdown by budget category; trends from previous years 6.2 Funding Strategy Details of how expenditures will be treated (e.g., capitalization policies) and funded; determination on whether smoothing-out of cashflows is needed 6.3 Valuation Forecasts 6.4 Key Assumptions Made in Forecasts 6.5 Forecast Reliability and Confidence Forecast the future value of assets; describe valuation methodology; forecast depreciation Describe the assumptions made in preparing the forecasts and risks that they might change Include sensitivity analysis quantifying variations in forecasts using scenarios relating to the key assumptions

17 7. The Plan Improvement and Monitoring section details how the AMP will be monitored and improved for accuracy and confidence level 7.1 Status of AM Practices 7.2 Improvement Program 7.3 Monitoring and Review Procedures 7.4 Performance Measures Current and desired state of AM processes, data and systems Details of actions proposed with timetables for improving accuracy and confidence of AMP; assign responsibility for each action; resources required for implementation Procedures and timetable fro performance performing; timetable for external audit and review Outline of performance measures for the AM system; description of how the effectiveness of the AMP will be measured

18 8. References and 9. Appendices References Bibliography of publications, documents and other materials referred to in the AMP Provide sufficient detail for future easy access the materials Appendices (examples) Level of service reviews/market research Capital expenditure programs Asset data (condition, valuation, etc.) Relevant strategic/tactical plans Demand management strategies Operating procedures Emergency response plans Contract information Detailed risk analysis Project sheets for AM improvement tasks

19 Comparison of IIMM AMP structure with other recognized guidance documents International Asset Management Manual (Australia/NZ) 1. Executive Summary 2. Introduction 3. Levels of Service 4. Future Demand 5. Lifecycle Management Plan 6. Financial Summary 7. Plan Improvement and Monitoring 8. References 9. Appendices Local Government and Municipal Knowledge Base (Australia) 1. Scope 2. Related Plans, Policies & Strategies 3. Stakeholders 4. Reasons for Asset Ownership 5. Physical Classification & Description of Assets 6. Asset Data 7. Asset Related Activities & Service Levels 8. Asset Valuations 9. Future Considerations 10. Forecast Expenditure & Cash Flows 11. Targets, Measures & Monitoring Guide for Municipal Asset Management Plans (Ontario) 1. Executive Summary 2. Introduction 3. State of the Infrastructure 4. Desired Levels of Service 5. Future Demand 6. Asset Management Strategy 7. Financing Strategy 8. Appendices

20 Alignment of the ISO requirements for AMPs to the IIMM guidance Available for downloading from the Institute of Public Works Engineering Australiasia

21 Questions / Comments? Alan B. Ispass, PE, BCEE alan.ispass@ch2m.com (202)