region of peel's corporate asset management program
DESCRIPTION
TRANSCRIPT
In association with:
Region of Peel’s Corporate Asset Management Program
Troy Mander, Manager, Corporate Asset Management
Finance Department, Region of Peel
Terry Martins, P.Eng., Vice‐President, Asset Management
UEM
May 5, 2009
In association with:
In association with:
Peel Today
• The Region of Peel is a large, prosperous municipality: – more than 1 million residents– a broad industrial &
commercial base– attracts industry & an
educated, skilled workforce
• It is the Region’s goal to maintain the high standard of living & services to the residents & businesses
In association with:
Strategic Challenges
• What’s driving Peel’s CAM requirements:
How sustainable is Peel’s infrastructure?
How do we build flexibility for change?
How do we pay for it?
In association with:
The Way Forward
• Early intervention with AM strategies is the key to managing Peel’s infrastructure challenges
• Council & EMT recognize the importance of AM for Peel’s economic, environmental and social wellbeing
• Senior level support for the development of comprehensive AM for the entire organization
In association with:
Peel’s CAM Strategy
• Water• Wastewater• Roads• Long‐Term Care• Social Housing
• Paramedic Services• Children Services• Waste Management• Shelters• TransHelp
A cross‐organizational AM platform supporting:
In association with:
Components of the Strategy
• Strategic Framework– Vision/objectives– Polices– Levels of service (customer
& technical)
• Life‐cycle strategies– Risk Management– Condition & performance
evaluation/modeling– Optimized decision‐making– Pro‐Active Maintenance
• Technology– Architecture – Databases– Applications/tools
• Data– Asset hierarchies– Inventory & valuation– Data collection and
management
• People– Skills/competencies– Compliment
In association with:
RiskManagement
Strategy
Asset &Reserve
ManagementStrategy
ARM Report
State ofReserves
State ofInfrastructure
StrategicAssetPlan
LifecycleManagement
Strategy
Asset Program& Service
Level ofServiceStrategy
Public Reporting& Strategic
Decision Making
CAM Strategy Framework: Phase I Deliverables
Risk Events
Asset Classes
Technology (July 2010)
Critical Asset Classes Key
Performance Indicators
Lifecycle Curves
Risk Profile
Technical Levels of’Service
In association with:
ARM Report
• A Strategic Asset Management Plan:
A long‐term view of infrastructure needs & tax/rate requirements to remain sustainable
Improved prioritization of infrastructure needs across the organization
Early planning to minimize rate increases
Improved analysis of the annual budgets & forecasts
In association with:
Peel’s AM Vision
“The Region of Peel will efficiently and effectively manage its assets to meet the service needs of the present while ensuring the sustainability of its infrastructure for the demands of the future.”
• It is to become a way of business for Peel
In association with:
CouncilEMT
Asset Plans
OperationalActivities (day‐to‐day)
StudiesOperationsCondition
AssessmentsPreventativeMaintenance
Capital Projects
TacticalPlanning< 5 years
StrategicPlanning(> 5 years) Strategic Plan
Budget Requests
CouncilEMT
Program Managers
Program ManagersTechnical Staff
Peel’s CAM Framework
Levels of Service& Risk Profile
Annual Budget &Forecast
Rate Setting(Tax & Rates)
Phase 1
Phases 2 & 3
Annual ARM Report
Program Activities
In association with:
RiskManagement
Strategy
Asset &Reserve
ManagementStrategy
LifecycleManagement
Strategy
Asset Program& Service
Level ofServiceStrategy
Public Reporting& Strategic
Decision Making
CAM Strategy Framework: Phase I Deliverables
Risk Events
Asset Classes
Technology (July 2010)
Critical Asset Classes Key
Performance Indicators
Lifecycle Curves
Risk Profile
Technical Levels of’Service
ARM Report
State ofReserves
State ofInfrastructure
StrategicAssetPlan
In association with:
Risk Management Strategy
• The risk management strategy defines a methodology under which an organization sets systematic processes to define, identify, assess and manage risk in a consistent fashion across the organization.
In association with:
The Risk Profile
• A Risk Profile is required to establish:– Risk tolerance or appetite– Key risk areas– Risk priorities– Options to deal with risks
In association with:
Define Your Risk Tolerance
In association with:
Risk Assessment Process
In association with:
Divisional Risks
• Funding resources• Data resources• Technology resources• People resources
– Skills/competencies– Compliment/numbers
• Business processes/operations• Strategic direction• Legislation/regulations and regulatory environment
In association with:
In association with:
The Risk Profile
In association with:
CAM & Risk
• Risk supports/directs CAM in 4 ways:
1. Technical Levels of Service• Serves to justify/support each TLOS
2. Risk Profiling – Prioritization of asset needs• Helps to prioritize asset needs & funding based on criticality
and vulnerability of the assets
3. Life‐cycle management• An input into L/C management strategies/decisions
4. Optimized Decision Making (ODM)• A parameter to calculate best AM decision
In association with:
RiskManagement
Strategy
Asset &Reserve
ManagementStrategy
LifecycleManagement
Strategy
Asset Program& Service
Level ofServiceStrategy
Public Reporting& Strategic
Decision Making
CAM Strategy Framework: Phase I Deliverables
Risk Events
Asset Classes
Technology (July 2010)
Critical Asset Classes Key
Performance Indicators
Lifecycle Curves
Risk Profile
Technical Levels of’Service
ARM Report
State ofReserves
State ofInfrastructure
StrategicAssetPlan
In association with:
Levels of Service
• A defined amount of output for a particular activity or service area against which performance may be measured. Service levels relate to quality, health, safety, quantity, reliability, responsiveness, environmental acceptability and cost.
In association with:
LOS Views
• Customer LOS: A non‐technical description of the way the customer receives the service
e.g. Safe bridges
• Technical LOS: A measure of the way the organization delivers the service,
e.g. The network structural condition index for bridges will be maintained at a minimum of 80%.
In association with:
Public Service View
Public Service
Potable Water Supply Service
Service Objective
Drinking Water Distributed
Service Objective
Drinking Water Treated
Service Accountability
Water Division (ETPS)
Customer LOS
Safe, Healthy & Reliable Drinking
Water
Customer KPIs
Water Rate (cost), # Boil Water Advisories,
# service interruptions
In association with:
Developing TLOS
A safe, reliable road network
Safe Roads
Pavement
Structures
Ancillary Road Assets
Bridge Condition Index = 80
Noise Wall Condition Index =
B
PotholesPavement
Condition Index = 70
Tilting Noise Wall
Excessive Bridge Deck Cracking
Example:
StrategicServiceObjective
Customer Level of Service
AffectedAsset Class
RisksTechnical
Level of Service
In association with:
Internal Service View
Public Service
Potable Water Supply Service
Service Objective
Drinking Water
Distributed & Treated
Internal Service Name
Water Distribution Operations & Maintenance
Transmission Mains
W Pump Stations
Distribution Mains
AdministrativeBuildings
Works Yards
Fleet
AssetsInvolved
AssetsOwner
W Division
W Division
W Division
FacilitiesDivision
Operation Support
W Division
Technical LOS
Pump Condition >???
Technical LOS
Pump Redundancy
Risks
Risks
Risks
Risks
Risks
Risks
In association with:
LOS Outputs
• Customer LOS– Defines service provided to customers– Drives high‐level KPIs
• Technical LOS– Drives lifecycle decision making
In association with:
RiskManagement
Strategy
Asset &Reserve
ManagementStrategy
LifecycleManagement
Strategy
Asset Program& Service
Level ofServiceStrategy
Public Reporting& Strategic
Decision Making
CAM Strategy Framework: Phase I Deliverables
Risk Events
Asset Classes
Technology (July 2010)
Critical Asset Classes Key
Performance Indicators
Lifecycle Curves
Risk Profile
Technical Levels of’Service
ARM Report
State ofReserves
State ofInfrastructure
StrategicAssetPlan
In association with:
Lifecycle Management Strategy
• Activities to assess, monitor and measure asset performance, condition and risk & to determine the most effective asset management actions.
In association with:
Risk ProfileTLOS
Con
ditio
n
Time
Ris
k
Deterioration Curves
In association with:
Lifecycle Process
• Develop Asset Management Plans– Capital & Operating Costs for all assets– Risk & LOS associated with each asset
•When $ too big, tweak Risk & LOS• Look at funding options
– Objective assessment of all assets– Best spending to reduce overall risk– Long‐Term financial plans
In association with:
Other Key Components
• Asset Hierarchies & Registry– A methodology to categorize & report by asset
types, group similar assets and roll‐up asset groups into higher order infrastructure categories/types.
• Key Performance Indicators– A qualitative or quantitative measure of a service
or activity used to compare actual performance against a standard or other target
In association with:
Keys to Success
• Scope the AM Initiative – What is the asset base– Who are the stakeholders
• Get Senior Support• Get the organization behind the initiative
In association with:
Keys to Success
• Assign a credible champion– It needs to be driven
•Build an AM knowledge base– Build the business processes & knowledge– Workshops, workshops, workshops
•Make it relevant to everyone– Be prepared to invest in helping people through the process
