Strategic Direction 2012 The focus for Asset Management 2012 - 2016
Strategic Direction 2012 Asset Management Achievements 2007 to 2011 Council’s first Asset Management Strategy was actioned through the achievement of the following milestones. Asset Register The development of an effective asset register is a long term goal based on the methodology of continuous improvement. The process began in 2007 with an asset audit to spatially map the quantities and location of infrastructure assets across the Wagga Wagga LGA. Based on this information, an asset register was created using Council’s electronic mapping system, ArcGIS. As further information about the individual asset is collected it is added to the register. As at 2011 the register includes the following information for each unique segment of infrastructure assets included in the Asset Management Plan: asset type asset location total network quantity condition ratings for each asset segment the last inspection date images of the asset, and characteristics of the asset components.
Asset Management Plans Council has developed an Asset Management Plan and 20 supporting sections, based on the following key elements: taking a life cycle approach developing cost-effective management strategies for the long term providing a defined level of service and monitoring performance understanding and meeting the demands of growth through demand management and infrastructure investment managing risks associated with asset failures sustainable use of physical resources, and continuous improvement in asset management practices.1 1
IIMM 2006 Sec 1.1.3, p 1.3
Page 2
Strategic Direction 2012 The Asset Management Plan and supporting sections are fundamental to the achievement of these key elements. The cornerstones of the Plan and supporting sections are: defining levels of service – specifies the services and levels of service to be provided by Council for each asset type condition assessment – specifies the technical tools used to assess the condition of each asset life cycle management – how Council will manage its existing and future assets to provide the required services financial summary – what funds are required to provide the required services asset management practices – how the organisation will manage its assets and the tools it will use to accomplish this monitoring – how the Plan will be monitored to ensure it is meeting Council’s objectives, and asset management improvement plan. Asset Management System In 2011 Council purchased an asset management software system. This system will allow Council to develop its systems and processes for the management of workflow and asset management activities between office-based computer systems and mobile field operations staff and contractors. The system will assist in capturing and managing unique asset information, including measurements, construction dates, condition ratings, inspection results and schedules, photos, current asset value, residual value and recognise subcomponents. It will automate the process of work orders, have a relationship with the ledger and allow for predictive modelling. Works reports from condition data, works completed tool and data reports for asset management This milestone closes the loop between the data captured in the asset register and the works implemented throughout the Wagga Wagga LGA. Each month stakeholders from across Council are asked to report on works completed. This data is then used to update the asset register.
Page 3
Strategic Direction 2012 Asset Management Journey The milestones achieved to date focus on developing the tools required to implement the new approach to asset management. They are concerned with capturing asset data, using this data to support decision making and communicating the methodologies of asset management Council has adopted. While these are significant milestones, they represent the beginning of the asset management journey. The second phase of the asset management journey will concentrate on: changing the organisational culture to align with the new asset management approach continuously improving the understanding of asset management principles throughout the organisation encouraging stakeholder engagement in the new approach engaging with the community to define their level of service for infrastructure assets, and integrating the Asset Management Planning documents with Council’s other strategic plans. The below image represents the asset management journey from the beginning when an organisation decides to base decisions on the condition rating of assets to an advanced philosophy based on optimised decision making. Based on the achievements to date, it is estimated that Council is in between traditional and core asset management. It is expected that the implementation of phase two of the Asset Management Strategy will see Council progress to core asset management.
Page 4
Strategic Direction 2012 Asset Management Strategic Direction in 2012 The implementation of this Strategy will develop initiatives to progress Council through the asset management journey. It will build on the current asset management framework and improve the practices which influence the quality of strategic decisions relating to infrastructure networks and promote the organisational change required to support this.
Asset Management Focus in 2012 1. To begin to understand the level of service, satisfactory to the community for asset categories included in the Asset Management Plan 2. To continuously improve Council’s knowledge regarding the current asset base, including asset condition and financial information 3. To continuously improve the communication methodology and documentation relating to infrastructure data, asset management practices and financial information 4. To continue to improve asset management systems, information and procedures to support effective decision making 5. To continue to support an organisational culture which encourages involvement in the new approach to asset management
Page 5
Strategic Direction 2012 Asset Management Strategic Milestones 2012 to 2016 Levels of Service Develop innovative community engagement initiatives Implement community engagement initiatives across the Wagga Wagga LGA Set the level of service for each asset category based on the outcomes of the community engagement Asset Unit Rates Develop a register of asset components to be given a uniform unit rate Research the unit rate for each asset component in cooperation with stakeholders Define the accepted unit rate for each asset component Develop a Unit Rate Supporting section of the Asset Management Plan for internal use Continuous Improvement of Asset Management Documentation Identify gaps in the current Supporting Sections of the Asset Management Plan Develop initiatives to address the gaps identified Review and update Supporting Sections of the Asset Management Plan Review and update condition data and financial information Improve the integration of the asset management planning documents with Council’s strategic plans Nature Strip Supporting Section Locate and spatially map current asset base Develop condition rating methodology and inspection regime Conduct condition rating of the network Develop current liability of the network Establish intervention levels, targeted maintenance events and projected costs Develop the Nature Strips Supporting Section Page 6
Strategic Direction 2012 Implementation of Asset Management Software Training of Council Assetic Administration Team Setup of roads and bridges asset categories Go-Production, system up and running for Admin Team Go-Live , system up and running for Council staff o Develop supporting business rules Set up remaining asset categories in production and go live Asset Management Procedures for Council Develop a list of procedures to be included Develop procedures in cooperation with stakeholders, based on Council’s processes and systems Collate procedures and communicate them with stakeholders Develop a supporting section of the Asset Management Plan for internal use Council Capitalisation Policy Consult with stakeholders to establish and agree on: capital activity versus operational activity minimum capital value for specific activities identified as capital activity Develop the policy document Policy approved by Corporate Review Committee, ETeam and Council Asset Management Maturity Develop and implement initiatives to survey and benchmark Council’s progression through the asset management journey Assess if the asset management documentation contribute to Council’s strategic objectives Assess if the Asset Management Plans are integrated with Business Owner plans Asset Management Reference Group Workshops Develop initiatives to engage stakeholders in asset management workshops Develop and implement a schedule of asset management workshops for the Asset Management Reference Group Page 7
Strategic Direction 2012