ASSET MANAGEMENT FRAMEWORK AND ROAD MAP

TABLE OF CONTENT
Section 1.0 Item INTRODUCTION CORPORATE PLANNING a) Confirm strategic objectives & establish AM policies, strategies & goals b) Define responsibilities & ownership c) Decide core or advanced AM Plan d) Gain organisational commitment e) Develop team. REVIEW/COLLATE ASSET INFORMATION a) Existing information sources b) Identify & describe assets c) Data collection d) Condition assessments e) Performance monitoring f) Valuation data DEFINE SCOPE AND STRUCTURE OF PLAN ESTABLISH LEVELS OF SERVICE a) Establish strategic linkages b) Define & adopt statements c) Establish measures & targets d) Consultation LIFECYCLE MANAGEMENT STRATEGIES a) Develop lifecycle strategies b) Describe service delivery strategy c) Risk management strategies d) Demand forecasting and management e)Optimised decision making (3) (renewals, new works, disposal) f)Optimised Maintenance Strategy FINANCIAL FORECASTS a) Lifecycle analysis b) Financial forecast summary c) Valuation / Depreciation d) Funding IMPROVEMENT PLAN a) Assess current/desired practices b) Develop improvement plan lTERATlON ANNUAL PLAN /BUSINESS PLAN IMPLEMENT IMPROVEMENT STRATEGY AM PLAN REVIEW & AUDIT INFORMATION MANAGEMENT AND DATA IMPROVEMENT Page 3 12 12 17 18 21 22 24 24 25 29 45 56 60 62 64 64 67 69 78 87 87 88 101 120 128 149 160 160 164 167 183 185 185 189 192 194 195 199 203

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ASSET MANAGEMENT FRAMEWORK AND ROAD MAP

INTRODUCTION
a)What Is Asset Management [AM]? One definition of AM is as follow: A process for maintaining a desired level of customer service at the best appropriate cost. Another definition is as follow: Asset management is maintaining a desired level of service for what you want your assets to provide at the lowest life cycle cost. Lowest life cycle cost refers to the best appropriate cost for rehabilitating, repairing or replacing an asset. Asset management is implemented through an asset management program and typically includes a written asset management plan. b)Why AM? Managing assets will help a utility be more efficient and financially self sufficient. Water industry in Malaysia faces the following challenges: Determining the best (or optimal) time to rehabilitate/repair/replace aging assets. Increasing demand for services. Overcoming resistance to tariff increases. Diminishing resources. Rising service expectations of customers. Increasingly stringent regulatory requirements. Responding to emergencies as a result of asset failures. Protecting assets. By implementing AM, the following benefits could be achieved: Prolonging asset life and aiding in rehabilitate/repair/replacement decisions through efficient and focused operations and maintenance. Meeting consumer demands with a focus on system sustainability. Setting rates based on sound operational and financial planning. Budgeting focused on activities critical to sustained performance. Meeting service expectations and regulatory requirements. Improving response to emergencies. Improving security and safety of assets. c) Implementing Asset Management: Five Core Question Framework A good starting point for any size water system is the five core questions framework for asset management. This framework walks through all of the major activities associated with asset management and can be implemented at the level of sophistication reasonable for a given system. These five core framework questions provide the foundation for many asset management best practices. Several asset management best practices are listed. These best practices are constantly being improved upon.
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c1. What is the current state of the systems assets? The first step in managing assets is knowing their current state, because some of this information may be difficult to find, use of estimates are necessary. Over time, as assets are rehabilitated, repaired or replaced, the inventory will become more accurate. These are the questions should be asked: What do I own? Where is it? What is its condition? What is its useful life? What is its value? Best practices include: Preparing an asset inventory and system map. Developing a condition assessment and rating system. Assessing remaining useful life by consulting projected useful life tables or decay curves. Determining asset values and replacement costs. A decline in the value of the infrastructure indicates insufficient funding of asset management. c2. What the required sustainable level of service? Knowing your required sustainable level of service will help in implement an asset management program and communicate to stakeholders. Quality, quantity, reliability, and environmental standards are elements that can define level of service and associated system performance goals, both short and long-term. Information about customer demand, data from utility commissions or boards, and information from other stakeholders to develop the level of service requirements can be used. The level of service requirements can be updated to account for changes due to growth, regulatory requirements, and technology improvements. These are the questions should be asked: What level of service do the stakeholders and customers demand? What do the regulators require? What is the organization actual performance? What are the physical capabilities of the assets? Best practices include: Analyzing current and anticipated customer demand and satisfaction with the system. Understanding current and anticipated regulatory requirements. Writing and communicating to the public level of service agreement that describes the systems performance targets. Using level of service standards to track system performance over time. Knowing the required sustainable level of service will help in the implementation of an asset management program and communicate to stakeholders on what are being done. c3. Which assets are critical to sustained performance?
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How we manage the consequences of failure is vital. Not every asset presents the same failure risk, or is equally critical to the water systems operations. Therefore, it is important to know which assets are required to sustain the water systems performance. Critical assets are those that have a high risk of failing (old, poor condition, etc.) and major consequences if they do fail (major expense, system failure, safety concerns, etc.). Critical asset can be decided and ranked accordingly. Many water systems may have already accomplished this type of analysis in vulnerability assessments. These are the questions should be asked: How can assets fail? How do assets fail? What are the likelihoods (probabilities) and consequences of asset failure? What does it cost to repair the asset? What are the other costs (social, environmental, etc.) that are associated with asset failure? Best practices include: Listing assets according to how critical they are to system operations. Conducting a failure analysis (root cause analysis, failure mode analysis). Determining the probability of failure and listing assets by failure type. Analyzing failure risk and consequences. Using asset decay curves. Reviewing and updating the systems vulnerability assessment (if the system has one). Identifying critical assets will help in making decisions about resource allocation and about maintaining or improving the sustainable level of service. c4. What are my minimum life cycle costs? Operations and maintenance (O&M), personnel, and the capital budget account for an estimated 85 percent of a typical water systems expenses. Asset management enables a system to determine the lowest cost options for providing the highest level of service over time. Step should taken to optimize what the work O&M crews are doing, where they are doing it, and why. An asset management program helps make risk-based decisions by choosing the right project, at the right time, for the right reason. These are the questions should be asked: What alternative strategies exist for managing O&M, personnel, and capital budget accounts? What strategies are the most feasible for the organization? What are the costs of rehabilitation, repair, and replacement for critical assets? Best practices include: Moving from reactive maintenance to predictive maintenance. Knowing the costs and benefits of rehabilitation versus replacement. Looking at lifecycle costs, especially for critical assets. Deploying resources based on asset conditions. Analyzing the causes of asset failure to develop specific response plans.

Knowing the answer to these questions will help the system move from a passive fix-itwhen-it-breaks posture to an active program of preventive maintenance and timely asset replacement. c5. What is my best long-term funding strategy? Sound financial decisions and developing an effective long-term funding strategy are critical to the implementation of an asset management program. Knowing the full economic costs and revenues generated by the water system will enable us to determine the systems financial forecast. The systems financial forecast can then help in deciding what changes need to be made to the systems long-term funding strategy. These are the questions should be asked: Do we have enough funding to maintain the assets for the required level of service? Is the rate/tariff structure sustainable for the systems long-term needs? Some strategies to consider: Revising the rate structure. Funding a dedicated reserve from current revenues (i.e., creating an asset annuity). Financing asset rehabilitation, repair, and replacement through borrowing or other financial assistance. Knowing the full economic costs and revenues generated by the water system will help determine the systems financial forecast. The financial forecast can then provide needed information in making decisions regarding long term funding strategy. Beyond planning, asset management should be implemented to achieve continual improvements through a series of plan, do, check, act steps. d)Lifecycle Strategies in Asset Management Plans The lifecycle strategies in asset management plan that is required for the successful AMP cover the following headings: Asset planning Asset creation/acquisition Asset operations and maintenance Asset condition and performance monitoring Asset rehabilitation/replacement Asset disposal Asset management/audit review Financial management Lifecycle AM focuses on management options and strategies considering all relevant economic and physical consequences, from initial planning through to disposal. The effective application of AM principles will ensure the reliable delivery of services and reduce the long term costs of ownership and in this way reduce service costs. e) Steps in Preparing an Asset Management Plan There are typically five steps involved in preparing and updating an AM plan.
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Step 1: Identify the Objectives Before commencing the preparation of an AM plan, it is necessary to determine who will read the plan, "what they already know about the organisation, what they want to know, and how they intend to use the information contained in the plan. The needs of the target audience should be combined with the communication objectives e.g. the extent of information of which the reader should have access. Having identified and resolved any conflicts between what the target audience wants to know and what they need to know, a start can be made.

Step 2: Outline the AM Plan Structure and Content. The outline can be as general or as detailed as required. Review this manual to identify areas that should be more detailed, based on the audience and the objectives. A decision is required on how to group the assets, to make it easier to present asset information and lifecycle tactics and the issues impacting on their management. For example assets may be presented by assets type (eg reservoir, pumphouse, buildings, structures etc), or by site (eg by district, system etc). Factors influencing this decision includes; the number and value of assets scale of maintenance and operation costs the depth of asset information available whether the assets are managed in similar ways where the assets are in their lifecycle the structure of management and service delivery contracts

Step 3: Write the Plan In preparing the plan consider the folllowing; the order of plan preparation will depend on the data and information available, the sophistication of the AM processes and the experience available for preparing AM plans It may be necessary to research on many areas before there is enough information to write about. At this initial stage use most readily available information such as hard copy records, historical reports, and staff knowledge.) Further investigation may be required but do not get bogged down in extensive research and analysis, nor waiting to collect additional data. Once the plan is completed there will be a clearer picture of the most important data to collect If information is unavailable , make the best assumptions, based on current information. Write the plan on this basis state these assumptions clearly (keep notes on assumptions during the plan preparation). The plan is a living document and will be updated. Make use of tables and graphs to present information and data to enhance the presentation, readability and understanding of AM plan. Prepare initial drafts of prospective financial statements and cashflow projections after preparing the rest of the main body of the document. The last element of an AM plan to be prepared is the Executive Summary. Plan to make this a standalone document that summarises clearly the main elements of the AM plan.

Step 4: Have the Plan Reviewed After completing and reviewing the draft of the plan, have someone with expertise in AM planning review the plans strengths and weaknesses, and its ability to meet any disclosure or other criteria.

Step 5: Update the Plan AM plans are dynamic documents and must be updated periodically to maintain relevance. As the objectives or customer expectations change, or AM systems improve, update the plan to reflect those changes. Ensure that all areas are covered properly in the revised plan. AM improvement activities that will be incorporated into future plans should be ongoing between updates.

f)The principles and processes for successfully implementing asset management (AM) planning The process of implementing AM planning is illustrated in the flow chart in Figure f.1. The AM development process should begin with the organisation setting broad corporate AM policy, objectives and outcomes consistent with the organisational strategic plan, and move logically through the following steps: confirm AM overview structure and responsibilities assess current status/future requirements for AM and confirm an improvement programme and resources required prepare suitable AM plans describing the programmes to be undertaken to achieve the corporate objectives and service performance measures determine the best mechanism for implementing the AM plan (service delivery structures) maintain two-way information flows between the AM plans and other organisational plans so that effective decision making, reporting and monitoring of the effectiveness of AM plans outputs can take place continuously monitor and review the effectiveness of AM planning in delivering the required outcomes.

CORPORATE STRATEGIC DIRECTION Identify corporate need Obtaining organisational commitment Confirm corporate AM policy, strategy, goals and objectives

THE ASSET MANAGEMENT TEAM Define AM roles and responsibilities Coordinate AM activities

Oversee AM implementation

IMPLEMENTING THE AM PLAN Service delivery roles and structures Service delivery options and mechanisms Contract issues information management

AM REVIEW & IMPROVEMENT PLANNING Cyclical process of: AM performance review Technical content of plan Legal compliance AM improvement planning and implementation

PREPARING & REVISING THE AM PLAN Plan preparation strategy Steps in preparing plan AM plan structure Developing life cycle strategies

Figure f.1: Flow Chart for Implementing AM Planning

The AM development process should begin with the organisation setting broad corporate AM policy, objectives and outcomes consistent with the organisational strategic plan, and move logicallythrough the following steps: confirm AM overview structure and responsibilities assess current status/future requirements for AM and confirm an improvement programme and resources required prepare suitable AM plans describing the programmes to be undertaken to achieve the corporate objectives and service performance measures determine the best mechanism for implementing the AM plan (service delivery structures) maintain two-way information flows between the AM plans and other organisational plans so that effective decision making, reporting and monitoring of the effectiveness of AM plans outputs can take place continuously monitor and review the effectiveness of AM planning in delivering the required outcomes.

g)Asset Management Framework and Road Map The following Asset management [AM] Framework and Road Map is prepared based on the International Infrastructure Management Manual International Edition Version 2006. The manual was intended for owners, operators of utilities system, local authorities etc. The Malaysian scenario is very different as under the revamping of the water industry where the actual assets involved will eventually surrendered to PAAB as the Facility Licensee as spelt out in the WSIA but will be operated by the Service Licensees. Further to that all new CAPEX shall be constructed by PAAB and all maintenance shall be done by the Service Licensees. Also under WSIA, SPAN was established and amongst its function as regulator are to regulate the level of service [LOS] as well as the tariff. Thus it is of common interest to all parties to make sure that all assets are operated in the most efficient manner as to eliminate premature asset replacement or rehabilitation as to avoid huge capital investments. In this framework, the recommended actions/activities will have to be done by all involved together. Highlight on the role of PAAB are also shown clearly. The following Figure g.1 show the road map for the preparation of the ASSET MANAGEMENT PLAN [AMP].

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Source: IIMM Fig 1.5.1, p 1.11

1. CORPORATE PLANNING a) Confirm strategic objectives & establish AM policies, strategies & goals b) Define responsibilities & ownership c) Decide core or advanced AM Plan d) Gain organisational commitment e) Develop team.

2. REVlEW/COLLATE ASSET INFORMATION a) Existing information sources b) Identify & describe assets c) Data collection d) Condition assessments e) Performance monitoring f) Valuation data 12. INFORMATION MANAGEMENT, AND DATA IMPROVEMENT 11. AM PLAN REVIEW & AUDIT 5. LIFECYCLE MANAGEMENT STRATEGIES a) Develop lifecycle strategies b) Describe service delivery strategy c) Risk management strategies d) Demand forecasting and management e)Optimised decision making (3) (renewals, new works, disposal) f)Optimised Maintenance Strategy 4. ESTABLISH LEVELS OF SERVICE a) Establish strategic linkages b) Define & adopt statements c) Establish measures & targets d) Consultation 3. DEFINE SCOPE AND STRUCTURE OF PLAN

10. IMPLEMENT IMPROVEMENT STRATEGY

6. FINANCIAL FORECASTS a) Lifecycle analysis b) Financial forecast summary c) Valuation / Depreciation d) Funding

7. IMPROVEMENT PLAN a) Assess current/desired practices b) Develop improvement plan 8. lTERATlON a) Consider service statements b) Options for funding c) Consult with Council d) Consult with community

IS THE PLAN AFFORDABLE? 9. ANNUAL PLAN / BUSINESS PLAN

Figure g.1 : The Road Map for the Preparation of the ASSET MANAGEMENT PLAN [AMP].
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1.0 CORPORATE PLANNING

a) Confirm strategic objectives and establish AM policies, strategies and goals b) Define responsibilities and ownership c) Decide core or advanced AM Plan d) Gain organisational commitment e) Develop team.

1a. Confirm strategic objectives and establish AM policies, strategies and goals.
AM goals and objectives shall be developed from the broad corporate objectives. Efficiency in AM will assist asset owner to continuously to deliver the desired services as long as required. Strategic planning horizon of 30 years as required by SPAN will ensure gradual movement of the service licensees and aligned them with SPANs vision. AM will provide service licensees to carry out continuous improvement. 1a.1 Strategic Planning Strategic plans typically have a 10-25 year horizon for financial planning purposes, although asset managers may look well beyond this period in order to fully assess optimum lifecycle strategies. Strategic plans represent the translation of legal and stakeholder requirements and expectations into service outcomes and an overall long-term strategy. The main components of the strategic planning process are: The development of vision, mission and values statements which describe the long-term desired position of the organisation and the manner in which the organisation will conduct itself in achieving this. A review of the operating environment, to ensure that all elements that affect the organisations activities have been considered. Such elements include corporate, community, environmental, financial, legislative, institutional and regulatory factors. Identification and evaluation of strategic options to achieve strategic goals arising from the vision and mission statements. Make clear statement of strategic direction, policies, risk management and desired outcomes. 1a.2 Asset Management Tactical Planning Tactical planning involves the application of detailed asset management processes, procedures and standards to develop separate sub-plans that allocate resources (natural, physical, financial, etc.) to achieve strategic goals through meeting defined levels of service. These processes, procedures and standards cover the following asset management activities: Managing asset management information systems, information and data - (asset attributes, location, condition, performance, capacity utilisation, risk, lifecycle costs, maintenance history, etc.) Risk identification, assessment and control Optimised decision-making Setting asset management objectives, including technical and customer service levels (including customer consultation), legal and regulatory financial
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Asset performance and condition monitoring, operational control; plans, procedures.

Depending on an organisations purpose, different tactical plans may have varying priorities. For example, owners of infrastructure assets are usually directly Concerned with asset management plans and customer service plans, which then become an input into other tactical (resource allocation) plans. Asset management plans are tactical plans for managing an organisations infrastructure and other assets so as to cost effectively achieve the organisations strategic goals in the long-term. 1a.3 Reviewing Overall Corporate Strategy Specific AM goals and objectives are developed from the broad corporate objectives. These objectives describe to customers the organisations commitrnent to the services provided and long-term strategies for infrastructure related service delivery. (i.e. strategies relating to consultation, capital development, environmental, financial, service delivery). The corporate objectives and strategies both influence, and are influenced by, the level of AM sophistication considered necessary. The first step is a review to ensure relevant corporate objectives are defined clearly and are consistent with the AM improvement programme and the content of existing AM plans. Decisions relating to the development of all AM policies and processes need to take be consistent with the organisations risk management framework. 1a.4 Setting the Corporate Asset Management Framework A key challenge facing those undertaking AM planning in establishing a linkage between the AM outcomes and the achievement of the agreed strategic outputs. An AM framework of policies, strategies, objectives and performance measures should be developed which satisfy the broader corporate objectives. The AM framework should include specific objectives related to: AM structure, roles and responsibilities continuous review and improvement of AM processes statutory compliance delivery of services to the standard agreed with stakeholders stakeholder consultation preparation of AM plans implementation of improvement plans for AM systems, data and processes. AM Policy
What is it'? Broadly outlines how and why AM will be undertaken across the organisation as a whole.

AM Strategy (also called AM Improvement Strategy

Specific actions to be undertaken by an organisation in order to improve or enhance AM capability and achieve specific strategic objectives. Develops a structured set of actions aimed at enabling improved AM by the 13

AM Plan Long-term plans (usually 20 years or more for infrastructure assets) that outline the asset activities or each service area.
Outlines actions and resources to provide a defined level of service in

Objectives

Sets the broad framework for undertaking AM in a structured and co-

AM Policy
ordinated way. Organisational context and importance of AM. Organisations overall vision and goals and supporting AM vision and goals. AM policies underpinning the strategic goals. Key performance measures for policies, including broad timeframes and deadlines (eg: frequency of AM Plan reviews, timing of community consultation inputs). AM responsibilities and relationships. How AM integrates into the organisations business processes. Audit and review procedures

AM Strategy (also called AM Improvement Strategy

AM Plan

Typical Contents

organisation. the most cost effective way. A dscription of the current A summary of an status of AM practices organisations strategic (processes, asset data, and goals and key AM policies. information systems). Definition of levels of Organisations future vision service and performance of AM. standards. A description of the Demand forecasts and required status of AM practices to achieve the future management techniques. Description of the asset vision. portfolio. Identification of the gap A broad description of between the current status and the future vision (a gap the lifecycle management analysis). activities for operating, Identification of strategies maintaining, renewing, and actions required to close developing and disposing the gaps, including resource of assets. requirements and A cash-flow forecast. timeframes. Key AM improvement A summary of the gap actions including analysis and improvement plan is usually included in the resources/timeframes. AM Plan.

Figure 1a.4.1: Defining Asset Management Policies, Strategies and Plans

1a.5 Linking Corporate, Asset Management and Operational Objectives Tactical plans like the AM plan will need to identify strategic outcomes that the plan specifically supports and focus AM plan performance measures on monitoring their achievement. The key elements of an approach for ensuring AM plans are effectively integrated with strategic planning include: l. Providing a robust process and corporate Strategic Plan to which the AM framework is linked. This can be achieved through a process of formalizing the desired community/customer outcomes, and identifying in the Strategic Plan the adopted outcomes and the specific AM plan programmes, actions and associated budgets which support them. The achievement of outcomes can then be monitored and the effectiveness of AM programmes assessed. 2. Developing and implementing a performance development process to complement and support both the Strategic Plans and the AM plans. A hierarchy of performance measures flowing downwards from the strategic outcome statements is developed for use at different levels of decision- making. Higher level key performance measures are focused on defining service expectations from a customer perspective, and are used as the basis for stakeholder consultation. Lower level technical standards are used at a tactical level to monitor
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performance. The process requires asset managers to link annual work programmes back to specific Strategic Plan outcomes via a business plan. 3. Ensuring the process of strategic monitoring and review provides flexibility to advance changes identified in the AM plans into the Strategic Plan. 4. Reviewing the existing AM plans to include: discussion on how AM plans contribute to desired strategic outcomes linking the AM service/ performance measures to the managers Business Plans focus on improving AM practices that influence the quality of strategic decisionmaking (e.g. risk management). Overall this approach seeks to improve decision-making through: assisting asset managers to take a multi-faceted view of proposed actions (ie assessing the impact of proposed actions on strategic outcomes) improving accountability of decision-makers through the corporate Strategic Plan providing better tactical information for strategic decision-making developing AM plans that reflect the intent of the corporate strategic plan. Figure 1a.5.1 shows how corporate AM objectives will assist the organisation in improving its management activities. Corporate AM Objectives Asset Management Practices and Systems will Assist in:

Implement Asset Raising the awareness of the organisation on what is required to manage Management effectively all assets Improvement Changing culture to implement effectively new AM policies Identifying potential benefits of introducing new practices and systems Identifying asset groups most in need, prioritising programmes accordingly, allocating resources effectively Optimising Asset Putting the right practices in place to manage the assets and protect the new Decision-Making investment Ensuring asset creation at lowest lifecycle cost Identifying non-core or under-utilised assets Identifying current levels of utilisation, performance and condition Investigating all options to overcome deficiencies including asset and non-asset options (e.g. demand management) Introducing Identifying future liabilities that will need to be funded Lifecycle Asset Developing strategic plans relating to rehabilitation, renewal and/or replacement, Planning including optimised decision-making Identifying Cost Highlighting future asset problems and developing strategies to reduce their impact on Efficiency ratepayers Identifying the best practices to manage the assets most cost-effectively Carrying out economic evaluations to determine whether to renew or rehabilitate, and when would be the best time to do this Identifying the optimal, cost balance between planned and unplanned maintenance activities Identifying opportunity for investments that have the greatest return Identifying and prioritising asset needs to deliver the service objectives Reducing Risk Identifying assets at-risk (in terms of imminent failure). ldentifying assets that have high consequences should they fail 15

Corporate AM Objectives

Asset Management Practices and Systems will Assist in:

Using risk management techniques to optimise renewal/rehabilitation practices and drive maintenance programmes Reducing the organisations exposure to liability related incidents Driving condition monitoring programmes, as passive assets reach end of life Identifying the strengths and weaknesses of the existing systems Identifying the data and systems required to raise the level of information to manage assets effectively Making sure new and upgraded assets are automatically recorded on the AM systems Setting minimum and target levels of service for all services Satisfying the customer and the public that assets are managed to the best of the organisations ability Achieving adopted levels of service in the most cost-effective manner Developing the most effective method to programme and carry out performance and condition monitoring Ensuring that the organisation has the best systems in place to protect its investment and optimise investment dollars Proving that the assets are being managed well and equitably for both present and future generations without burdens on new investors and/or existing customers Letting the community know more about their assets, the real costs for different service standards, and the effective allocation of monies Highlighting the need for better financial and technical integration Implementing systems to provide the necessary financial information at the asset level Addressing accrual accounting outputs, including matching depreciation with actual loss of service potential Providing interested parties with detailed cost information on all asset own operated by the organization Implementing system that identify the true lifecycle costs on an asset-by-asset (or service) basis, relating to a specific level of service.

Updating/Replaci ng Inadequate Records Addressing Service Standards

Satisfying StakehoIders/ Customers and improving Organisation Image Meeting Accounting Standards

Knowing the real asset cost

Figure 1b.1.1: Table Linking Objectives With Achievement in Asset Management Practice

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1b. Define responsibilities and ownership

1b.2 Inter Organisational Roles/Responsibility in Malaysia The goal of having AM will enable Service Licensees to operate and able to meet the required level of service in the most cost effective manner. PAAB and SPAN will be able to use information from AM to ensure Service Licensees operate with: - Optimal CAPEX - Optimal O & M PAAB will also be able to prepare for the long term financial requirement. Decision making process will also be improved as various options and other economic considerations are considered. All parties must play their role and responsibilities accordingly where in general: SPAN -make rules or specifications for service level and CAPEX -make policy
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-monitor and regulate / enforce -set strategic direction PAAB -as asset owner -construct the CAPEX Service Licensees -operate responsibly -provide various data / reports All parties are required to ensure AMP is prepared as early as possible and carry out review regularly. The roles and responsibilities of each organization of course govern by the various laws and contracts/concessions that bound them. Within the the organization, roles and responsibilities must be made clear. The following is an example for roles and responsibilities.
Example: Key stakeholders in the preparation and implementation of this infrastructure and asset management Capital Planning Team Responsible for the production, Maintenance and circulation of this asset management plan Asset Manager Provide technical advice, Review. Assist updating data. Operations Manager Provide input and review of maintenance expenditure and Service Levels Data collection. Corporate Planning and Strategy Annual Business Plan and Budget Process / Strategic Manager Management Plan review Finance Manager Long Term Financial Plan input Manager Asset Management Review and management sign off HR Manager Advice and training on plan development. Development Manager CAPEX planning and projection Operation Director Executive management endorsement. Team leader

1c. Decide Core or Advance AM Plan

1c.1 Defining Core Services The AM function covers a wide range of activities, from issues relating to culture and policy, through to matters relating to operations and tactics. The asset owner will need to determine which core services should be retained as part of the core activities and which services can be contracted out effectively. Core services may he defined broadly as those where there is a legislative requirement for the asset owner to directly undertake the activity, or which are essential for retaining ownership and strategic management control. Generally the higher level activities such as deciding policy and setting strategy will be retained as core activities by the owner, and lower level activities may be contracted out effectively with minimum owner risk. The split of management activities into core, non-core and marginal
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activities (performed by either the owner or contractor) are set out in Figure 1c.1.1. The organisation also needs to decide what its core assets are.

Figure 1c.1.1: Table Showing Division of Core and Non-core Activities

1c.2 Decide Core or Advanced AM Plan Core and Advanced Asset Management Practices The degree of complexity of AM will differ according to an organisations corporate needs. Typically organisations will start at a core level (focusing on current practices) and develop to a more advanced level identifying strategies to reduce lifecycle costs through improved practices and new technology. Deciding on the level at which the organisation is aiming is a key strategic decision to be made. Core Asset Management The recommended approach for core AM is to: take at lifecycle approach develop core AM plans based on: A - best available current information and random condition/ performance sampling - simple risk assessment to identity critical assets - existing levels of service (service level reviews come later) - contrasting existing management strategies with opportunities for improvement. prioritise capital works using simple ranking criteria (subjective points scoring or simple cost benefit analysis to evaluate options) calculate long-term (10-20 year) cash flow predictions for asset maintenance, rehabilitation and replacement, based on local knowledge of assets and options for meeting current levels of service provide financial and critical service performance measures against which trends and AM plan implementation and improvement can be monitored. There is merit in quickly developing an AM plan which initially meets only the minimum legislative and accounting requirements, rather than waiting until more information becomes available or improved systems and processes are in place. Although the level of confidence in the
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outputs (valuations, quantification deferred maintenance and long-term works budgets) may be restricted, there are subsequent advantages to this approach such as: cost-effectiveness weaknesses in AM data, systems and processes will be highlighted these weaknesses can be addressed in an improvement programme which progressively lifts the initial AM plan to an appropriate level of sophistication, giving a clear direction to AM planning and identifying the resources required all existing AM policies and processes are recorded in a single document an immediate focus for AM planning will be created. Therefore the first version of an AM plan may be brief and simple, addressing each section of the plan only to the extent possible, given the data, systems and processes immediately available to the organisation. Important inclusions in such plans should be statements on: assumptions made in preparing the plan and consequent level of certainty the intended programme for progressively improving the AM plan . how the AM plan meets any minimum criteria for the industry Advanced Asset Management After the development of the initial AM plan, AM will evolve in a continuous cycle of review and improvement so the quality of outputs matches the changing business needs of an organisation. For some organisations or asset types the sophistication of AM planning may not need to progress beyond a core approach. Enhancements may seek to optimize activities and programmes to meet agreed service standards. Advanced AM will be system focused, utilising enhanced computerised systems and AM processes, and more detailed data on asset condition, performance and cost. The AM outputs will show the following features: the AM strategy is clearly derived from corporate strategic plan long-term, whole life plans and cost/risk/ performance otimisation objectives and performance measures are aligned and complementary IT systems are integrated, used and understood competencies and training is aligned to roles, responsibilities and collaborative requirements strategies are risk based, with appropriate use of predictive methods, optimised decisionmaking (ODM) techniques to identify the optimum long-term AM plan to deliver a particular level of service iterative continuous improvement. The sophistication of the resulting AM plan will need to be supported by: well-defined and agreed levels- of service accurate and detailed asset data, with minimal assumptions and high confidence levels impacts of other tactical plans on the AM plan reviews confirming both technical logic and appropriate implementation (i.e. meeting community needs and strategic objectives). 1c.3 Selecting the Appropriate AM Level
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Selecting the appropriate asset management level for an organisation which for some organisations or asset types may not need to progress beyond a core approach, will depend on a number of factors,_including: the costs and benefits to the organisation . legislative requirements the size, condition and complexity of the assets the risk associated with failures the skills and resources available to the organisation customer expectations. As the restructuring of water industry in Malaysia is something new, it is suggested that PAAB and SPAN consider the CORE approach as the starting point. Review shall be made from time to time and appropriate changes made if necessary.

1d Gain Organisational Commitment

1d.1 Obtaining Organisational Commitment A programme is unlikely to succeed unless there is a commitment from the staffs who are going to implement it, and there is strong corporate support for those staff. If the AM programme is likely to result in major change for the organization then change management philosophies will need to be considered. Organisational commitment may be achieved by: Raising the awareness of elected members (or Board members) and the corporate management team of the benefits of AM and the associated policy and financial implications. imparting ownership of the process by involving the key players in the AM programme right from the initial planning phase, including representatives from the following areas of the organization: o senior management o corporate strategy planning/ policy development o asset management o finance and economics o information technology o service delivery. Communicating AM objectives to staff, preferably in terms of practical, concrete examples where short-term results can be achieved. Ensuring staff are provided with the appropriate systems, training and resources. It is difficult to develop a long-term vision when short-term asset development and/ or crisis management activities are stretching current resources. Retaining a focus on AM at all levels by the continued involvement of key staff across the organization in the review processes and keeping staff fully informed of targets, progress and achievements.

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1e Develop team and allocate responsibilities

Within each organization, the whole plan to implement and carrying out AMP must involved the top management of the highest level as coordination is very important. Team leader must be appointed from amongst the very senior management. A corporate pool of expertise and trained personnel is a requirement. Management must ensure all the required resources including some external support especially at the initial stage. Also the role and composition of the team will change as the programme evolves. Typically there are 3 distinct phases: i) Strategy development and implementation phase ii) Plan development and implementation phase data collection/level of service review/plan development iii) Plan operation phase ( evaluation/monitoring etc) and ongoing plan review Typical duties of AM Coordinator are: - Liaising with consultant and external stakeholders - Liaising with top management and internal stakeholders - Commissioning or undertaking needs analysis - Developing overall corporate AM strategy - Coordinating AM improvement programmes - Updating of AM plan - Carrying out and coordinating AM improvement tasks - Developing procedures The following Figure 1e.1 shows the type of personnel involvement at the various stages/activities. There are many others that are involved but not shown in the figure right from the top executive down to the workforce at site including IT personnel. At inter organizational level as plan by PAAB, there will be even more people of various background involved. There are many parties involved and almost all data come from the Service Licensees. PAAB must work closely with Service Licensees and PAAB. Each organization shall have its own team leader and team where role and responsibilities are clear spelt out. Those involved must be briefed and understand what is required to be done and why it must be done. AMP and is very important as many important decisions especially related to financial and economic decisions are made from data/analysis from AMP.

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Figure 1e.1: Asset Management Improvement Programme Interrelational and Indicative Project Duration.

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2. REVIEW/COLLATE ASSET INFORMATION

a) Existing information sources b) Identify and describe assets c) Data collection d) Condition assessments e) Performance monitoring f) Valuation data

2a Existing Information Source

2a.1 Sources of Data Sources of data generally fall into one of the following major categories: graphical plans and maps textual written data in the form of notations on maps or specifications etc. the assets themselves that represent full-scale working models that can be measured and quantified other sources of data such as photographs and miscellaneous records etc. Data collection staff should familiarise themselves with all these, and determine the most cost-effective way to transfer data from the existing records to the proposed database systems. In some cases, it may require: electronic transfer from existing electronic records manual transfer from handwritten records and plans etc. actually measuring or identifying the data on site from the assets themselves using either manual hard copy or electronic recording systems (hand-held loggers). Irrespective of what process is selected, it is essential that parties concerned with the data collection have a good understanding of where data are available and the most cost-effective way to transfer that data into the systems concerned. Likely sources of data are outlined in Figure 2a.1.1 below. Type of data
Spatial data (location, length, Plans, maps size) Aerial photography Textual record Plans/maps Attribute records Separate data base Field books Actual assets Full scale models Other source Progress photographs CCTV

Likely source
Digital maps Microfilm Payment schedule/inspection sheet Fault/failure records Maintenance/renewal records Asset inspection Other source Previous staffs/contractors

Figure: 2a.1.1 Sources of asset data

2a.2 Field computers

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Current technology permits data to be updated by field staff using pen-based field computers and data loggers. These computers allow rapid data input and uploading into the main asset register. The process applicable is: download a sub-set of the asset register applicable to the site or district using pen-based or data loggers or map-based technology, update the asset attributes, asset condition or maintenance work order return data-set to main office (can be via telecommunications) validate the data collected on-site upload data to the main asset register and update all appropriate changes update the audit trail during the up-load process. While pen-based computers have proven successful, organisations need to carry out pilot study of the computers to determine their suitability for the environment in which they operate. Once it has been shown that there are benefits in using the computers, the computers and training can be implemented across the organisation. 2a.3 Cost Effective Data Sources Sometimes the most cost effective data collection can be done internally by doing a thorough review of all the information available in various departments of an organization. Opportunities for further data collection can be achieved through the following: as an integral part of the planned maintenance programmes when commissioning or upgrading assets in combination with other asset groups or external utility operators.

2b Identify and Describe Assets

2b.1 Asset Hierarchy Structure Infrastructure assets generally have a clear hierarchical relationship that breaks down from the asset type as a whole, e. g. water supply or roads system, to large units (facilities), then to assets and their components. The intent of the asset hierarchy is to provide the business with the framework in which data are collected, information is reported, and decisions are made. In most cases organisations work with an informal asset hierarchy. This often leads to data being collected to inappropriate levels, either creating situations where costs escalate with minimal increases in benefit, or insufficient information is available to make informed decisions. Asset managers need to ensure they understand the definition of what an asset is and what an appropriate hierarchy is, before embarking on any data development or enhancement. a) Deciding the Hierarchy Key issues for consideration are the: information required to manage the assets assets to be managed accuracy required of the data and information component level at which assets are required to be valued
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resources available to collect and manage data and information tactics employed to achieve service delivery, e.g. outsourcing current key business drivers, e.g. maintaining service delivery in a high growth environment and/or aging infrastructure the hierarchy should include the capability of modelling networks and routes, where this is essential for managing delivery, to enable route specific strategies and risk management. Within the hierarchy there is a need to segment the total asset base into several levels. In most cases the asset hierarchy will be determined by identifying the difference between asset groups, i.e. roads, buildings, parks etc, and reviewing the numbers and value of assets. The asset hierarchy can be based on asset function, asset type or a combination of the two. b) Assigning information in the asset hierarchy The information needs of the organisation vary throughout the management structure. At the workface the key elements are operations, maintenance, and resource management, at a component level. At higher management levels this information needs to be aggregated to provide details on assets, facilities and (infrastructure) systems as a whole in terms of finance, strategic planning and policy. Data should be able to be assigned at all asset levels of the hierarchy where applicable, including works orders, customer calls and costs. Figure 2b.1.1 summarises the application of information from different levels in a typical asset hierarchical structure.

Figure 2b.1.1: Table Showing Information Generated at Different Hierarchical Levels

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c) Asset Hierarchy ln general: The hierarchy system should be structured to allow for future expansion as the sophistication of AM planning increases. The best approach to classify assets with dual uses is to consider their criticality to the parent asset. Dual use assets should be recorded only with the asset group to which the asset is most central, e.g. sumps and sump connection pipes are classified as part of the roads assets. Asset hierarchies should be developed and confirmed on a corporate basis, initially to avoid future ambiguity or conflict. Sub-components (comprising different component types) and spares may be classified at the outset but should be identified separately only as data is required. 2b.2 Asset Identification System An asset identification system should have the following properties: provides a unique identifier for each asset is appropriate for the asset hierarchy and software systems to be used the rules for assigning numbers are simple and are recorded allows for the accommodation of newly created assets avoids unnecessary complexity complements the data/ information needs of the organisation allows existing numbering systems to be incorporated (where possible). The process for establishing asset identification systems typically involves five steps as shown in the flow diagram in Figure 2b.2.1.

Figure 2b.2.1: A Flow Chart Showing the Process for Establishing Asset Identification System

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The following issues should be considered prior to developing an asset identification system: i) Numbering systems generally fall into three major categories: unintelligent (random sequential numbers) semi-intelligent (asset identification that may indicate the type of asset, department, or responsible organisation and may identify an assets approximate location but then uses unintelligent sequential numbers for the balance of the number) fully intelligent (the asset identification will be structured to indicate the type of asset, the location, and other items that can be identified through the uniqueness of the number). ii) The preferred asset identification option for an organisation will depend on operational, geographical, historical and future development circumstances. iii) The various components that make up an intelligent or semi-intelligent asset numbering system may relate to: hierarchical code - gives some relationship to the class/category of asset and its art in the hierarch of the system zone or location - the assets are identified according to their position or their relationship within their total asset group (i.e. related to districts, towns etc.) and individually. This enables both the asset individual history and its position relevant data to be used in context to optimise decisions sequence - has no intelligence attached to it; just a number for each asset without any interrelationship property related numbering systems - assets are numbered by street or the lot number to which they relate. Assets for which this type of asset identification is applicable include: water, electricity and gas meters house connections for all services, e.g. water supply wastewater disposal, drainage, electricity power poles street lights roadside furniture such as bus stops, traffic signs pedestrian crossings street trees. Intelligent numbering systems were implemented to cater for systems that only permitted searching or filtering of data by the asset number. With todays technology this requirement is generally obsolete as most systems permit full text searching and filtering. The additional use of a GIS to complement the AM system also makes intelligent and semi-intelligent numbering obsolete. Intelligent numbering systems have inherent problems related to data entry errors and the longer time required to make entries. Whilst it is ideal that the AM system has inherent searching mechanisms which do not rely upon intelligent asset numbering, often this is not possible. For instance where an organisation has separate AM systems for each type of asset or separate asset, financial and GIS systems, there may be a need for intelligent asset identifiers to link these systems together for data integration or consolidation. In some cases too, the speed at which data can be accessed can be improved by the addition of intelligent asset identifiers.
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If numbering systems are used, some good rules to follow are: If the AM system utilises full text search/filtering capabilities, greater emphasis should be placed on the information being input into the various fields as opposed to asset identification. For example, asset description should be consistent across an asset group, e.g. when searching for a pump, the word pump should be a standard descriptor across the asset group. Care should be taken when implementing sequential numbers to allow for future expansion of the data set and the addition of new assets. Consult with other organisations that have implemented AM prior to developing an asset identification process, to learn from their experience. Systems adopted must be capable of being used for any chosen software. Avoid the use of alpha-characters in the asset identification that have the potential for being confused as numbers, e.g. O and I. Integration with existing systems (GIS, financial) will require resources for data matching and data scrubbing. This can be an extensive exercise.

2c Data Collection
2c.1 Planning the Data Collection Programme Data collection is the largest workload component of an AM programme and it is critical that this phase is well planned and managed. The data capture programme should be planned to ensure that: there is economic value in all the data collected (focused on achieving outputs), both to the asset manager and the organisation as a whole the correct data is collected data is collected cost effectively data accuracy and completeness is known and meet user needs and AM system requirements. Data should only be collected where a clear requirement exists, and its required accuracy should be specifed. Where practicable, data collection and management should be an integrated part of asset management processes such as maintenance and operation. The use of technology, such as hand held terminals, will improve data accuracy and confidence when used appropriately by minimising the administrative steps and enabling on site verification of data entry. Staff who are responsible for data collection should be adequately trained and informed of the use of the information and required accuracy. Figure 2c.1.1 illustrates a possible information strategy designed to collect, store, analyse, report and maintain physical property data.

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Figure 2c.1.1 : Flow Chart for an Information Strategy 2c.2 Have staged programme lt is unnecessary, and probably unachievable, to create a complete and accurate data collection model in the first years. Initially collect only the data required for the critical short-term outputs to optimise the use of resources and remain focused on the real objectives and needs. Stage collection or complete separable areas to achieve early AM productivity. The activity can be completed using an incremental approach, collecting detail as part of the daily routine. 2c.3 Capture all new asset data It will never be cheaper to obtain complete and accurate asset data than at the time of commissioning. 2c.4 Estimate if data is not critical When data is not available readily the need for immediate collection must be questioned. For example, estimating a sewer manhole invert level may be acceptable if hydraulic analysis is not required. 2c.5 Have robust updating processes Rigorously enforce updating processes. Failure to do so will result in the incremental destruction of the asset database rather than the desired incremental improvement.

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2c.6 Maintain a high level of staff commitment Training is important, and rotating staff will allow skills to be passed on and alleviate boredom. When data is collected there is an associated information management responsibility to ensure that any activity that changes the data is fed back into the data management process, thus ensuring confidence in the data and resulting reports. 2c.7 Record data confidence Data confidence can be expressed as a combination of accuracy (a numeric measure) and reliability (a qualitative measure) and completeness of the procedures that underpin data collection. In this issue, PAAB has decided that the criteria shall be set for data integrity and reliability and these shall be ranked in terms of levels of reliability as follow: Reliability ranking 1: Highly reliable. Verified first hand or from reliable available documents Reliability ranking 2: Based on available documents of uncertain reliability Reliability ranking 3: Based on calculation, reliable estimate with basis Reliability ranking 4: Unreliable, best guess estimate

2c.8 Data Collection and Prioritisation Process The process for defining and implementing a data capture project typically involves five steps as shown in Figure 2c.8.1

Figure 2c.8.1: A Flow Chart for Defining and Implementing Data Capture

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Organisations need asset data that will indicate those assets that are reaching the end of their effective life and will require further attention in the immediate future, e. g. 5 to 10 years. Providing there is an understanding of the relative components of the assets and the way in which they age, the value of the asset and the point at which it is in its lifecycle can be determined. In this way, the critical assets that are liable to cause the most concern in the next ten years can be identified. lt is only these assets on which additional data is needed. The additional data includes: additional attribute or physical characteristics data condition data data required to enable adequate predictive modelling performance data data that may be required to choose the optimal renewal option. The Case Study which follows describes a risk based approach used by a water authority to prioritise data collection needs.

2c.9 Deciding the Level of Data Detail The need for asset data is specific to each organization and should be defined clearly. It is essential that the data collected support the management decision process. Prior to the

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development of a data model, organizations need to undertake a review of their business needs and decision making processes. The data model should be linked to business outputs. Also, it should be recognised that organisations can be required to satisfy: legislative commitment, e.g. asset accounting legal compliance, e.g. building regulations reporting to clients government reporting. In determining the level of data to be collected against an asset, the following issues need to be considered: the purpose for which the data is required availability of resources, e. g. skill levels, equipment accessibility and quality of existing data data management issues, e.g. data maintenance costs data collection techniques whether the extra detail will make a material difference. The business needs will determine what data should be collected, when, the required completeness, the level of service and the accuracy. The data will be required to support some or all of the following: maintenance (planned and unplanned) management systems asset accounting outputs prediction modelling risk management optimised decision support systems GIS. Figure 2c.9.1 shows the levels of detail to be considered when scoping a data capture exercise. Rapid establishment of an asset register based on minimal data can be embellished with new detail, and its accuracy can be improved by systematic implementation of such staged data capture. Auditors are more likely to accept an asset register developed from very minimal data if the organisation is committed to a programme of staged improvement. The fields required to establish an asset register are listed in priority order where; Priority one data provides base asset register data (and a core asset management model). Priority two data allows for the development of technical asset maintenance management. Priority three data allows for greater sophistication and the introduction of higher level management such as risk and optimised lifecycle analysis.

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Figure 2c.9.1: Data Collection, Levels of Detail Considered when Scoping Data Capture

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Specific data fields are required to provide asset management functionality required by organisations. The recommended fields required for this purpose have been included in Figure 2c.9.2.

Continue to next page .

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Figure 2c.9.2: Table Showing Recommended Fields for Asset Management data Framework

As well as increasing detailed knowledge on assets, there is also a need to examine the hierarchy within which assets are classified. Initially data can be collected by systems, e.g. drainage by catchment, roads by ward. This can be driven by availability of data in the first instance and the time frame in which registers must be established. Listing assets to maintenance managed items (MMI), i.e. the level at which maintenance is performed, will assist in the establishment of a maintenance management system. It is also important that such consideration is given to all asset groups to ensure horizontal uniformity of approach across the organisation. This will ensure that each asset group is being treated appropriately.

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2c.10 Factors Affecting Cost Many factors influence the cost to establish an asset register. The availability of data, skills, software and time are the most significant of these. Figure 2c.10.1 outlines the effects such issues have on the cost of data capture and the restriction on available options. The effort required to establish an asset register for an asset management system is the most expensive of all asset management-related tasks. Factors which drive the cost of data capture are: asset identification level number of physical attributes required accuracy of data required and associated method of data capture and recording number of AM functions to be included data availability other impacts. As a rule 80% of the data will be collected for half the total cost, with the last 5% contributing up to 20% of the total cost. It is critical to ensure there is economic justification for all data collected. Figure 2c.10.2 lists some opportunities for reducing the cost of data collection.

Figure 2c.10.1: Isues Affecting Choice of Methodology and Cost

COST DRIVER TRAVEL TO ASSET GETTING ACCESS TO ASSET

COST REDUCTION OPPORTUNITIES Use low cost staff/contractor for non-skill activities, high skills for assesment only Optimise travel route Use best method: car, boat, motorbike, helicopter, foot or bicycle Ensure that staff can guarantee access 39

COST DRIVER LOCATING ACTUAL ASSET

COST REDUCTION OPPORTUNITIES Record assets as quickly as possible (eg. Digital photographs /images) TIME TO RECORD Collect any data that cannot be derived from images PHYSICAL ATTRIBUTES (eg. model numbers) Record data from images using skilled staff ASSESSING CONDITION OF Develop database layouts and use data logger systems ASSET AND RATING OF Use barcodes or GPS to identify individual units SAME infra-red measuring devices QUALITY VERIFICATION Help screens or manuals to assist condition rating Object based records - type of asset (symbol) RECORDING WORK NEEDED Standard work procedures available in maintenance system ON ASSETS Collect data as part of normal work practices

Figure 2c.10.2: Table Showing Cost Affective Data Collection

2c.11 Pilot Programmes Organisations should select an asset service area or small facility that is representative of the assets owned within each infrastructure asset group. The sample should have sufficient complexity to cover the typical data capture issues that are likely to arise. The pilot assets could comprise a: specific park or recreation facility section of wastewater, water supply or drainage reticulation sample of different categories of roads section of a treatment plant facility. lt is important during pilot programmes to: involve a cross-section of the staff that is likely to be involved in the AM process involve staff at all levels to allow their input into the trial and decision-making complete the pilot, performing all stages of data collection, entry and auditing review outcomes and discuss any problems that have arisen, refocussing on the key objectives of the programme check that assumptions concerning data accuracy and data capture are valid and investigate opportunities to enhance data collection and entry methods amend the programmes methods, standards and documentation, as appropriate. 2c.12 Data Accuracy and Confidence Figure 2c.12.1 is a grading system used for describing data accuracy (degree of confidence). Ideally, a code indicating the source of the data should be recorded to assist the accuracy rating, e.g. scanned from maps, GPS. The quality of data should be monitored rigorously at each stage of collection, entry and updating, to ensure user confidence in the information. Processes should be in place to track the

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source and accuracy of data, and formal audit procedures implemented to quantify the accuracy of data entered.

Figure 2c.12.1: Grading System for Describing Accuracy

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Case Study: Documented Data Capture Processes illustrates a documented process for data collection. The following data capture checks are recommended: audit: random audit of data accuracy (minimum 5% sample) at each stage of collection and entry etc connectivity: check network nodes are interconnected logically logic: sort and print out data and look for abnormalities. 2c.13 On-going Data Maintenance Once sufficient data has been collected and input, the systems will move into the full operational phase. All staff members and contractors will be responsible for the inputting of data in relation to their work activities. Data should be managed and maintained, with clear accountability given to an appropriate person for management of the information. With respect to long-term strategic planning, the same staff should be responsible for assessing the condition of assets, the remaining residual life and the rehabilitation or renewal work that could be required in the future. Once in operation, it is important to review the overall programme and determine exactly what has been achieved, and to what level of sophistication and complexity the system has been implemented. lt is through the operation of the system, using the data obtained in the initial data collection exercise, that validation of the quality and an appreciation of the functionality of this initial data can be gained. Another target is to ensure that the systems remain effective and relevant to the organisation, with regular reviews to determine the efficiency and effectiveness of the system. This can help to determine if any enhancements are required, to either the data that are available or to the computer systems or software systems themselves. This can ensure that they are more applicable to the needs of the workface, the business units or the corporate organisation for these systems.

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This can be seen as a long-term role for staff involved in asset management. The currency of data is critical to effective asset management. The resourcing of the ongoing data management, including quality checking/ auditing, should be recognised in future AM planning costs.

Case Study: Documented data Capture Process

Background: This procedure covers the routine and annual inspection of pump and pressure reduction stations. The desired outcome is to ensure operational data and data on the description, condition and performance of the assets is captured effectively to update CONFIRM` asset registers and operational models. The Maintenance Management Contractor is responsible for data capture and inspection of pump and pressure reduction stations. The WCC Engineer, Drainage Pump Stations and WCC Engineer, Water Supply Stations are responsible for ensuring that Contractors complete the appropriate forms and the captured data is accurate. They are also responsible for updating data capture forms and this procedure. Condition Grade or Performance Grade: A grade or rating between 1 and 5 for the condition or performance of the asset considered The definition of each grade for different assets is detailed in NZWWA Asset Grade Standards. Critical Assets: Are those assets that are likely to result in a significant financial, environment and social cost if they fail. All assets have been assigned a criticality grading. The most critical assets should be inspected more regularly. Each Visit Step 1 Before any person enters a pump station they must be familiar with the current Health and Safety Procedures relating to Pump Stations. Step 2 Carry out tasks required for the purpose of the visit, noting any visual faults or operational problems (such as cracks, leaks, rust stains, unusual smells, unusual equipment noises and vibrations or sparks) Serious or urgent faults (likely to cause a safety hazard or major operational problem and overflow) should be reported immediately to the appropriate WCC Pump Station Engineer. Step 3 Record in the Log Sheet: the reason for the visit, the date and time of visit, any faults identified, the extent of work undertaken, and the pump hours. The Log Sheet must be signed. This information must be completed each time a pump station is visited for any reason. Monthly Inspection During the last week (that has at least 4 days) of each month, each pump station must be inspected. The inspection Check List and Log Sheet are to be completed, and general housekeeping and cleaning tasks are to be performed. Any urgent faults shall be reported immediately to the appropriate WCC Pump Stations Engineer. If any asset or part of an asset has been replaced or repaired, the details are to be noted on the Asset Register Checklist Annual Inspection 42

Authorities Responsibilities;

Definitions:

Procedure:

Case Study: Documented data Capture Process

A detailed inspection of all assets within each pump station must be completed annually in accordance with Performance Measurement Criteria. The following forms are to be completed during this annual inspection: Mechanical Schedule Electrical Schedule Civil/Structural Schedule . Telemetry Schedule (3 yearly inspection and replacement of backup battery) Gas Detector Schedule Asset Register Checklist (A current printout from the CONFIRM asset register must be obtained before commencing this inspection). Any structural (building) faults identified must be reported to the WCC Structural Engineer for further investigation. Each form lists the checks to be completed during each inspection and provides spaces to record data. Refer to related standards, procedures and guidelines for details on specific requirements. The appropriate WCC Pump Stations Engineer shall ensure that all urgent faults are repaired immediately, and non-urgent faults are programmed for repair. They shall also ensure that the relevant CONFIRM records (i.e. work order, asset description, condition grade, etc.)are updated, if any changes have been made. Contractors must complete a Monthly Inspection of each pump station during the last week of each month and return completed report forms to the appropriate WCC Pump Stations Engineer within 3 working days of completion. Contractors must complete a detailed Annual inspection of each pump station and return completed report forms within 5 working days of completion. The following forms are to be referred to and/or completed when visiting and inspecting pump stations. Monthly Inspection Forms: 1. Log Sheet (completed on each visit, forward monthly). 2. Monthly inspection Checklist. 3. Monthly Work Report Forms, as part of Monthly invoices. 4. Customer Service Complaint Logs. 5. Pump Station Asset Register Checklist. Annual inspection Forms: 1. Drainage Pump Station Annual Maintenance Schedule - Mechanical. 2. Drainage Pump Station Annual Maintenance Schedule - Electrical. 3. Water Supply Station Annual Maintenance Schedule Mechanical. 4. Water Supply Station Annual Maintenance Schedule Electrical. 5. Pump Station Annual Civil/Structural inspection Form. 8. Pump Station Telemetry Schedule. 7. Pump Station Annual Asset Register Checklist. WCC Health and Safety (OSH) Manual. Working on the Road. Drainage Pump Station Operations and Procedures Manuals. Water Supply Pump Station Operations and Procedures Manuals. Water Supply Facilities Management Contract. Drainage Maintenance Contracts. Water Supply and Drainage Technical Specifications. 43

Performance Measurement Criteria:

Documentation:

References:

Case Study: Documented data Capture Process

Attachments: Audit Check List; ACI Manual Part 1, Section 201 - Guide for making a condition survey of concrete in service. The forms listed under "Documentation" are attached. [ ] WCC Engineer, Pump Stations has checked that each inspection/repair form has been completed accurately. A random sample of forms (1 in 20) should be checked in detail by visiting the work site and confirming that the data recorded is accurate. lf a data capture error is found the Contractor must re-visit the site, at no cost to WCC, to obtain accurate data on faults. [ ] WCC Engineer, Pump Stations has checked that records have been transferred correctly to CONFlRM. lf a data entry error is found a Faults Form must be completed. Overall Data Capture lnspection and Monitoring Data Capture Surveys Operational Monitoring Operational Monitoring Data Acceptance Criteria

Related lnternal Procedures and/or Guidelines:

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