Establishing a Corporation-Wide Asset Management Program · Service Delivery Continuous Improvement Current Maturity Target Maturity International Infrastructure Management Manual

Establishing a Corporation-Wide Asset Management Program Asset Management Ontario – February 14, 2017

Establishing a Corporation-Wide

Asset Management Program Asset Management Ontario

February 14, 2017

2


Agenda Establishing a Corporation-Wide Asset Management Program

Guelph’s AM Background Introduction to the City of Guelph

Our Asset Portfolio

A Brief History

Corporate Asset Management Department

Communications and Buy-In Going Back to the Basics

Communicating our Collective Role

Asset Management Reporting

Documents in the AM System

Establishing the AM Roadmap Establishing the Course of Action

A Top-Down Approach

A Diagnostic Approach

Key Roadmap Items

Looking to the Future Work Plan and Next Steps

Measuring and Reporting Progress

2016-2020 Roadmap

3


Introduction to the City of Guelph Guelph’s Asset Management Background

Population of approximately 130,000

Approximately $4 billion in infrastructure

assets

500 km linear infrastructure network

Single-tier municipality

4

Our Asset Portfolio Guelph’s Asset Management Background

$4 Billion in Total

Which is $30,000

per Guelph resident

Administrative Facilities $111M

3%

Corporate Vehicles and Equipment

$40M 1%

Culture and Recreation

$296M 7%

Emergency Services $78M 2%

Information Technology

$7M <1%

Parking $58M 1%

Solid Waste $59M 2%

Stormwater $558M 14%

Transit $77M 2%

Transportation $1,549M

39%

Wastewater $560M 14%

Water $615M 15%

5


A Brief History Guelph’s Asset Management Background

Various departments had been

practicing good asset management for a

long time.

Finance and Engineering had been

building the case for a number of years.

Created a Corporate Asset Management

division in March 2016.

The division is located in the

Engineering Department, but it has a

corporate focus.

6


Corporate Asset Management Department Guelph’s Asset Management Background

Corporate Asset Management

Manager, Corporate Asset Management

Analyst, Corporate Asset Management

Infrastructure Program Manager

GIS Specialist

Hybrid Structure (Centralized, but also

Decentralized)

IT have an Asset Control Officer

Fleet have an Asset Lifecycle Analyst

7


Establishing the Course of Action Establishing the AM Roadmap

Get to know the people

Understand the organization structure

Understand the assets that we have,

and who is responsible for what.

8


A Top Down Approach Proposed Asset Management Work Plan

Bottom-up

Top-Down

Supports the 80/20 rule

Identifies broad opportunities that

we can “drill down” into

Outputs are detailed and have a

high degree of confidence

More comprehensive process

improvement

Corporate Asset

Management

Planning and

Policy

Asset System

Management

Planning

9


A Diagnostic Approach Establishing the AM Roadmap

10


Self Assessment Methodology Plus (SAM+)

Allows assessment of capability of BSI PAS

55:2008 and ISO 55001, including:

Strengths and weaknesses;

Deficiencies;

Areas of excellence.

Source: https://theiam.org/products-and-services/Self-Assessment-Methodology

https://theiam.org/products-and-services/Self-Assessment-Methodology











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0

1

2

3

4

5Asset Management Policy

Levels of Service andPerformance Management

Demand Forecasting

Asset Register Data

Asset Condition

Decision Making

Risk Management

Operations and MaintenancePlanning

Capital PlanningFinancial and Funding Strategies

Aset Management Teams

Asset Management Plans

Management Systems

Information Systems

Service Delivery

Continuous Improvement

Current Maturity Target Maturity

International Infrastructure Management

Manual (2015)

Provides a maturity index for each area of

the asset management system.

Also links to ISO 55000.

Provides guidance on the implementation in

each area.

12



Asset

Management

Component

Current Maturity Target Maturity How We Plan to Get There Timing

Asset

Management

Policy

Development

AM System scope is defined and

documented. Strategic context

(internal, external, customer

environment) analyzed and

implications for the AM System

documented In the Strategic AM

Plan

AM Policy and Strategic AM Plan

fully integrated into the

organization's business processes

and subject to defined audit, review

and updating procedures.

The City’s Asset Management Policy

is included in Appendix A of this plan.

As the Asset System Management

Plans are developed in 2018-2019,

they will incorporate detailed work

plans, resources, responsibilities and

timeframes.

2018-2019

Levels of

Service and

Performance

Management

Asset contributions to

organization’s objectives and some

basic levels of service have been

defined. Customer Groups defined

and requirements informally

understood.

Customer communications plan in

place. Levels of service are integral

to decision making and business

planning.

A comprehensive level of service

strategy is planned for 2017, which will

meet the target requirements.

2017 Capital Project: Corporate Level

of Service Framework

2017-2018

13

Guelph’s Key Roadmap Items Establishing the AM Roadmap

Establish AM

Governance

Structure and

Steering

Committee Asset

Management

Policy and

Strategic

Direction

Corporate Asset

Management

Plan

Asset Risk and

Prioritization

Frameworks Asset System

Management

Plans


Q2 2016 Q1 2017 Q1 2017 Q4 2017 Q4 2017 Q1 2018

Asset Inventory

and Condition

Assessments


Level of Service

and Performance

Measurement

Framework

14


Communications and Buy-in Communications and Buy-In

The Value Proposition:

Helps protect and enhance the quality of

life in Guelph by ensuring the best

possible decisions regarding our assets.

Supports evidence-based business

cases for budgets and long term

financial forecasts.

Drives longer term thinking and planning.

Supports financial sustainability.

15

Going Back to the Basics Communications and Buy-In

Providing

Satisfactory

Levels of Service

Managing Risks

Optimizing Lifecycle

Costs

Making the Best

Possible Decisions

About Assets

All based on a clear

understanding of the long term

objectives and purpose

16

Communicating Our Collective Role Communications and Buy-In

Understanding

Requirements

Forecast

Future

Demand

AM Policy and

Strategic

Direction

Define Levels

of Service and

Performance

Assess Asset

Condition

Understand

the Asset Base

(the Inventory)

Identify Asset

and Business

Risk

Lifecycle Management

Strategies

Financial and Funding

Strategies

Capital Works

Strategies

Maintenance

Strategies

Operational

Strategies Decis

ion

Makin

g T

ech

niq

ues

Lifecycle

Delivery

Continuous

Improvement

Quality

Management

Information

Systems and

Tools

Asset

Management

Plans

Asset

Management

Teams

Asset Management Enablers

Service

Delivery

Legal

Each Department

Communications

Human Resources

Council, Senior

Management Finance

IT

Operations GIS and IT

17


Asset Management Reporting Asset Management Policy

Service Providers

and Working Groups

Deliver and

manage the

service from

day to day

Corporate

Asset Management

Work with

service providers

and working

groups to

generate AM

documents

Asset Governance

Approve and/or

provide

feedback

Asset Management

Steering Committee

Review

documents, and

provide

feedback

18


Documents in the AM System Communications and Buy-In

Organizational Strategic Plans and Corporate Administrative Plan (2016-2018)

Outlines the organizational vision, goals and objectives

Asset Management Policy Outlines the principles, requirements and responsibilities for asset management,

linked to the organizational strategic objectives

Corporate Asset Management Plan

Outlines the objectives, practices, and action plans for asset management improvement, audit and review.

Asset System Management Plans

Provides an overview of the asset/service, levels of service, demand forecasts, lifecycle activities, and financial forecasts

Operational Plans and Work Programs Guides day to day activities of staff and contractors.

Completed

Next Steps

19


Rationale for the AM Policy Communications and Buy-In

Defines where we are heading on

our asset management journey.

Sets out the key principles and

goals that will guide our mission.

Outlines our vision of success, and

how progress will be measured.

Included in the Appendix of the

2017 Corporate Asset Management

Plan.

20


How the Policy was Developed Communications and Buy-In

Collaborative approach.

Workshops with Council and the

Asset Management Steering

Committee.

Established collective goals and

guiding principles.

Will serve as our guide on our asset

management journey.

21

Asset Management Plan Communications and Buy-In

Levels of Service

What we provide

Executive Summary

Concise summary of the plan

Introduction

Why we need a plan

State of the Assets

Inventory and condition

Lifecycle Management Strategy

How we provide the service

Financing Strategy

What it will cost and how we will pay for it

Improvement Monitoring

Where we go from here

22

Asset Management Plan Maturity Looking to the Future

2017-2018

Now

Source:

International Infrastructure

Management Manual,

2015

23


Work Plan and Next Steps Looking to the Future

Identified initiatives to 2020 including:

Actions related to improving future

asset management plans; and

Actions to advance the City’s

overall asset management

capabilities.

24

Measuring and Reporting Progress Continuous Improvement

0

1

2

3

4

5

Asset ManagementPolicy Levels of Service and

PerformanceManagement

Demand Forecasting

Asset Register Data

Asset Condition

Decision Making

Risk Management

Operations andMaintenance Planning

Capital PlanningFinancial and Funding

Strategies

Aset ManagementTeams

Asset ManagementPlans

Management Systems

Information Systems

Service Delivery

ContinuousImprovement

Current Maturity Target Maturity

25

2016-2020 Roadmap Continuous Improvement

2016 2017 2018 2019 2020

City

of G

ue

lph

Ass

et M

an

ag

em

en

t R

oa

dm

ap

1.1. Asset Management

Governance Structure

1.3. Corporate Asset Management Plan

2.1. 2017-2026 Capital

Budget

4.1. Integrated Capital Planning Process Development 4.2. Decision Support Functional Review

8.1. Enterprise Asset Management Implementation (CMMS)

9.1. Corporate Level of Service Framework

10.1. Water and Wastewater Risk Management Framework

7.2. Water and Wastewater GIS Data Modeling

1.4. Service Area Asset Management Plans

10.2. Corporate Asset Risk Management Plan

11.1. Asset Condition Assessments and Framework Development

12.1. Corporate Asset Preventative and Corrective Maintenance Strategy

13.1. Asset Management Maturity and

Capability Audit

4.3. Asset Management Decision Support System

14.1. Asset Management Performance

Reporting

1.2. Asset Management Policy

1.6. Corporate Asset Management Plan

Update

1.5. Asset Management Policy Update

2.2. 2018-2027 Capital Budget 2.3. 2019-2028 Capital Budget 2.4. 2020-2029 Capital Budget 2.5. 2021-2030 Capital Budget

9.2. Detailed Service Review Pilots

6.1. Water, Wastewater and Stormwater

Master Plan

9.3. Service Level Agreement Review

5.1. Asset Ownership Review

7.1. Asset Hierarchy and Register

9.4. Level of Service Predictive Modeling

8.3. Continuous EAM Improvement, Operationalization, and Support

10.3. Predictive Analytics Updates and

Improvements

12.2. Detailed

Maintenance Strategies

3.1. Asset Full Lifecycle Costing Models

Aware Advanced

26


Closing Remarks Establishing a Corporation-Wide Asset Management Program

Our key lessons learned so far:

Keep it simple and understandable.

Self assessment frameworks can provide a

quick way of establishing key opportunities.

Collaboration is key: Involve Council and Staff

across the organization where possible.

27


Thank you Questions and Discussion

Contact Details

Daryush Esmaili | Manager of Corporate Asset Management

519-822-1260 x 2765

[email protected]

For more information, visit

guelph.ca/assets