Asset Management (New NAMS Concise Asset Management Plan Template) – John Comrie Initially presented at SA LG conf 17 Aug 2017
Commercial in confidence
Aust LG Asset management • Many of the ‘asset management’ and ‘financial sustainability’ related reforms adopted in Aust have been world leading • Canada has been closely following & applying Aust initiatives • Most of the slides & pics in this presentation have been used extensively recently in Canada
Do we have enough funding and resources to: Maintain Renew and Upgrade infrastructure to meet community needs?
The conclusions were a resounding NO! So … Does that lack of funding and/or resources represent a service risk to your community going into the future? BUT The confidence in the data supporting these studies was low … so there was a push nationally via the states for changes
This “push” came in the form of requirements for Asset Management Principles to be adopted …. And included the development of Asset Management Plans
The Institute of Public Works Engineering Australasia was asked to help provided some resources to assist organizations do this … and that led to NAMSPLUS in late 2006
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NAMSCanada based on: NAMS = National Asset Management Strategy • Came from the need to write asset management plans and to link these to long term financial plans • Developed by IPWEA • • •
Institute of Public Works Engineers Australasia Follows the International Infrastructure Management Manual In line with the ISO 55000 AM standards
• Opportunity to tailor it to make it “Canadian” • Now Incorporated in Canada http://www.ipwea.org/namscanada/home
NAMS Canada NAMS is a suite of tools and templates to support the development and communication of an asset management plan • Excel, Word •
Be used to consistently communicate asset management information utilizing available information, such as existing infrastructure optimization, management, or other asset management systems
• Hosted online Delivered with training to organizations so that they understand the key concepts of asset management and can complete the work in house using external assistance as needed
#3 Principles of NAMSPlus … What it is/isn’t It uses the existing organizational information … whether that be from the Tangible Capital Assets Register, Optimized Modelling or Public Works Plans It is not an Asset Management System nor is it an Asset Register
Asset Management Plans 1. Executive Summary Context What does it cost?
What we will do? What we cannot do Managing the risks Confidence levels The next steps
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Asset Management Plans 1. Executive Summary 2. Introduction What Council Provides What it Cost? 3. Levels ofdoes Service Background Plans for the Future 3.1 Customer research and Infrastructure in plan expectations Measuring ourassets Performance
3.2 Strategic corporatevision, goals mission, goals & Link toand organisations The Next Steps objectives 3.3 Legislative requirements 3.4 Current levels of service 3.5 Desired levels of service
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Asset Management Plans 1. Executive Summary 2. Introduction What Council Provides 3. Levels What of Service does it Cost? Background
Plans forDemand the Future 4. Future
Infrastructure in plan Legislative requirements Measuring ourassets Performance 4.1 Demand drivers Link to Current organisations mission, goals & 4.2 Demand forecast of Service The Next Steps Levelsvision, objectives 4.3 Demand impact on assets Desired Levels of Service
4.4 Demand management How any gap is toplan be closed 4.5 Asset programs to meet demand
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Asset Management Plans 1. Executive Summary 2. Introduction What Council Provides 3. Levels What of Service does it Cost?
5. Lifecycle Management Plan Background 4. Future PlansDemand for the Future
5.1 Background data assets in plan Infrastructure
Legislative requirements Measuring our Performance 5.2 Infrastructure risk management Link to organisations mission, goals & Current Levelsvision, of Service The Next Steps plan objectives Desired Levels of Service 5.3 Routine operations and
maintenance plan How any gap is to be closed 5.4 Renewal/replacement plan 5.5 Creation/acquisition/upgrade plan 5.6 Disposal 5.7 Service consequences and risk 12
Asset Management Plans 1. Executive Summary 2. Introduction What Council Provides 3. Levels What of Service does it Cost? Background 4. Future PlansDemand for the Future
6. Risk
in plan 5.Infrastructure Lifecycle Management Plan Legislative requirements Measuring ourassets Performance Link to Current organisations mission, goals & of Service The Next Steps Levelsvision, objectives Desired Levels of Service How any gap is to be closed
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Asset Management Plans 1. Executive Summary 2. Introduction What Council Provides 3. Levels What of Service does it Cost? Background 4. Future PlansDemand for the Future in plan 5.Infrastructure Lifecycle Management Plan Legislative requirements Measuring ourassets Performance Link to Current organisations mission, goals & of Service The Next Steps Levelsvision, 7. Financialobjectives Summary Desired Levels of Service 6.1 Financial statements and projections
6.2 Funding strategyHow any gap is to be closed 6.3 Valuation forecasts 6.4 Key assumptions made in financial forecasts 6.5 Forecast reliability and confidence 14
Asset Management Plans 1. Executive Summary 2. Introduction What Council Provides 3. Levels What of Service does it Cost? Background 4. Future PlansDemand for the Future in plan 5.Infrastructure Lifecycle Management Plan Legislative requirements Measuring ourassets Performance Link to Current organisations vision, mission, goals & Levels of Service The Next Steps 6. Financial Summary objectives 8. Plan Improvement and Monitoring Desired Levels of Service
7.1 Status of asset management practices
How any gap is to be closed
7.2 Improvement program 7.3 Monitoring and review procedures 7.4 Performance measures
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Asset Management Plans 1. Executive Summary 2. Introduction What Council Provides 3. Levels What of Service does it Cost? Background 4. Future PlansDemand for the Future in plan 5.Infrastructure Lifecycle Management Plan Legislative requirements Measuring ourassets Performance Link toFinancial organisations mission, goals & Current Levelsvision, of Service The6.Next Steps Summary Factors affecting demand objectives Desired Levels 7. Plan or Improvement and Monitoring Growth declineof Service How any is to be closed in gap expectations 9. References Changes Technology
Corporate strategic plan
Demand management Corporate planning documents
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Asset Management Plans 1. Executive Summary 2. Introduction What Council Provides 3. Levels What of Service does it Cost? Background 4. Future PlansDemand for the Future in plan 5.Infrastructure Lifecycle Management Plan Legislative requirements Measuring ourassets Performance Link toFinancial organisations mission, goals & Current Levelsvision, of Service The6.Next Steps Summary Factors affecting demand objectives Desired Levels 7. Plan or Improvement and Monitoring Growth declineof Service How8.any is to be closed References Changes in gap expectations
10. Appendices
Technology App A Maintenance response service Demand management levels
App B Proj 10 yr Capital Renewal Program App C Proj 10 yr Capital Upgrade/New Prog 17
NAMSPLUS Concepts • Scenarios for renewal forecasts and funding • Understanding information • Lifecycle Cost • Links to Risk • Links to Levels of Service • Confidence levels • Improvement plans
Data for NAMS.PLUS • Growth – Contributed assets • Renewal estimates – Asset register (based on remaining useful life forecast – process often leads to revision thus improving accuracy of financial information) – Asset management system / Pavement Management System / other – Average or Planned Network Renewals • Upgrade New estimates • Financial Information – Budget / LTFP • Operations / Maintenance / Renewals / Upgrade & New
NAMS.PLUS Concise Asset Management Plan Template
• There was sometimes perception that ‘full’ version of NAMs needed too much data input • Concise version makes it clearer that much is optional • Can prepare an asset management plan in a day
NAMSPLUS website
NAMSPLUS – Input Methods Inputs by 2 Methods 1 Expenditure Template Spreadsheet Emailed and loaded overnight
2 On Line Editing
Outputs: What is revealed by a good asset plan? Activities • Operations • Maintenance • Capital renewal • Capital Upgrade/New Resources • Financing and staffing Timelines • Programs
Projections based on current programs
Achieving the Organization’s AM Objectives and Financial Sustainability While balancing costs, risks, opportunities and performance
Projections based on projected funding Deferral of activities and programs Likely reduction in service level performance Generation of additional service risks
Perfect World – Desired Level of Service May be unrealistic
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Reality – Affordable Level of Service Is this acceptable … or can we consider other options?
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#5 Benefits …. of Asset Management • Improved financial performance • Informed asset investment decisions • Managed risks • Improved services and outputs
5 Benefits …. of Asset Management Demonstrated: • social responsibility • compliance Enhanced reputation Improved organizational sustainability Improved efficiency and effectiveness
Asset Management leads to Informed Asset Investment Decisions Effectively balancing costs, risks, opportunities and performance Performance (Service Levels)
Costs
Risks & opportunities
Purpose of an AM Plan Document what service can be provided Show the resources required Show the risks and how risks are to be managed Highlight the consequences of limited resources What cannot be done Risks than cannot be adequately managed
Provide a tools for discussion and balancing future options
What services do you really need? What service are you prepared to do without? What risks are your willing to accept? What are you willing to pay?
This should be communicated through our Asset Management Plans eg NAMSPLUS Modelling
The Asset Management Plans should connect to other planning processes Community Planning
Supported by more specific “Plans”
The purpose of Integrated Asset Management Planning … NAMSPLUS … Just one of the tools to assist! Ensure that the decisions being made are done so with full knowledge of the consequences ….
KEY POINTS • Councils are very asset intensive – both in Aust & in Canada! • Is Council members responsibility to manage assets and associated risks (corporate commitment essential) • Requires consideration of short & longer-term factors/implications (Councils recently had extra grant funds)
• Impossible to make good rating and expenditure decisions without reliable AMPs • In SA there are legislative requirement to prepare & maintain simple & up-to-date AMPs • LGA has supported development of easy-to-use NAMS Plus tools to assist
THANK YOU!
