Ask Your Mates Open Forum

Aim of your Asset Management group

  • 1.  Aim of your Asset Management group

    Posted 21 August 2013 12:42
    I 'm looking for simple answers here. If you have a dedicated Asset Management Group/Dept what is the aim of that group? I see the key to holding all the things we do together is the Asset Register as it provides the basis for all the decision making we will make. So far I have 1. To manage data on councils assets in order to provide information for reporting and forecasting by maintaining an asset register, or 2. Maintain an Asset Register in order to provide information for: a. Capital Works forecasting and planning b. Asset performance, quantity and condition c. Reporting to other authorities d. Strategic planning e. Financial reconcilliation f. Maintenance and works planning g. Provision of general asset advice h. Spatial representation and plan management What do you have or what do you think? ------------------------------------------- Ashley Bishop Asset Management Officer Benalla Rural City Council BENALLA VIC -------------------------------------------

  • 2.  RE:Aim of your Asset Management group

    Posted 25 August 2013 02:14
    Hi Ashley

    I think our group has similarity in aim to what you have stated, prehaps less focus on Asset Register and more around processes.  Our objectives are:
    • Develop Asset Management policy and use this to increase awareness of asset management and the value it provides.
    • Continually innovate, review and improve standards, guidelines and processes.
    • Progressively improve the quality of information held and outputs provided.
    • Respond to requests for information from within the RCS Group and externally. Oversight Condition and Performance assessments and related reporting
    • Establish standards, guidelines and protocols for developing programmes and prioritisation of works.
    • Provide information to support quarterly (and other), organisational performance reporting Input into group and organisational processes including zone plans, RPS, policy reviews etc.
    • Oversight the processes involved with the revaluation of assets.
    • Document key asset management processes, and review with the aim of improving efficiency, effectiveness, and value for money.

    Gareth Langdon
    Asset Management Co-ordinator
    Waikato Regional Council
    New Zealand



  • 3.  RE:Aim of your Asset Management group

    Posted 26 August 2013 16:03
    Hi Ashley, Gareth, this is only a part of the road to sucess but an important one. For clean consistent data have a look at the ADAC(Asset design&As Constructed) data spec from the IPWEA and endorsed by NAMS.AU.

    Adam Hain-IPWEA
    Brisbane QLD



  • 4.  RE:Aim of your Asset Management group

    Posted 25 August 2013 02:15

    Good start but you are only focused on one aspect of what an Asset Management Team/Group does.

    How I describe our (AM team) role;
    We provide the repository of all information and knowledge about our Council's assets.
    This involves;
    1 Delivering a succinct AM Policy for acceptance by councillors
    2 Delivering a descriptive AM Strategy
    3 Delivering a workable, believable, robust AM plan (or plans, covering all assets
    4 Providing relevant information (to council staff) on assets, type, make, material, age, remaining life, condition, fair valuation, asset consumption, location, current and future works programs (both maintenance and capital), as well as budgets and longer term forecasts for (rational, affordable) expenditure - just to name a few!

    Your focus was on #4, but needs to include #1 - #4


    Darron Passlow
    Asset Management
    Pittwater Council



  • 5.  RE:Aim of your Asset Management group

    Posted 27 August 2013 03:05

    Simple word, Asset mgt is bank of knowledge, research of asset and principle to run business. It is helicopter view to improve business as whole.

    Port Phillip CC

    David Gunawan
    Asset Planning Officer
    City of Port Phillip


    Sent via IPWEA Mobile Application


  • 6.  RE:Aim of your Asset Management group

    Posted 31 August 2013 06:48
    The concern I have is when drilling back all the functions I do, I end up with the data, if the data ain't right..... but I don't want to be polarised as a database manager, but it can be too easy to fall into one mode. I do appreciate the strategic function and also the tactical function that AM is involved in, I'll leave the operational stuff the the experts who do it So far there has been a great list of objectives, but I still seek the aim, of all the things you/we do what does the effort end up achieving? Good asset management is not the answer it's the standard. For Darren and Gareth, these are great objectives, but as I do with my role, I ask why are we doing these, what do they achieve, then drill it back to the key functions.

    AIM:     Manage the organisation asset management process (if process is the best word)
    In order to: (the top level outcomes)
    1  Develop best practice techniques in managing asset types, classes
    2  Develop the annual CAPEX
    3  Forecast AM demand for strategic planning
    4  Probity on asset ownership
    5  Provide advice to service managers on AM options

    By: (you'll recognise these)
    1   Delivering a succinct AM Policy for acceptance by councillors (stakeholders)......
    2   Delivering a descriptive AM Strategy....
    3   Delivering a workable, believable, robust AM plan (or plans, covering all assets....
    4   Providing relevant information (to council staff) on assets........
    5   Develop Asset Management policy.....

    6   Continually innovate, review and improve standards, guidelines and processes...
    7   Respond to requests for information from within......

    8   Establish standards, guidelines and protocols....
    9   Provide information to support quarterly (and other), organisational performance reporting.....
    10 Oversight the processes involved with the revaluation of assets
    11 Document key asset management processes......
    12 Maintain an asset register.....

    Limited by:
    1  Organisational strategic direction (council plan)
    2  Compliance with NAMAF
    3  Budget

    The list might go on and it would be great if you can contribute to it, but the key line is the Aim and how it focuses all the functions we do without being too much a motherhood statement and tell the organisation what it's all about in a simple statement. Big ask I know.

    Thanks all
    Ashley Bishop
    Asset Management Officer
    Benalla Rural City Council



  • 7.  RE:Aim of your Asset Management group

    Posted 01 September 2013 20:11
    Hi Ashley, I like the idea you're driving at, but it seems to me your "aim" below is missing the reason for "managing the organisation asset management process". I think the aim needs to draw a link between the management of assets and the value of the asset to the customers it serves. Without this, we could fall into the trap of managing an asset simply because we always have - even though it no longer provides anyone any value. So, perhaps "managing the life cycle of assets within an acceptable risk to achieve a desired level of service to our customers". David ------------------------------------------- David Grasby Asset Manager, Stormwater Sydney Water -------------------------------------------

  • 8.  RE:Aim of your Asset Management group

    Posted 03 September 2013 17:49
    Hi Ashley, I think David is getting there. We need to get back to the fundamental outcome which the adoption of Strategic Asset Management can deliver to organisations as being the aim, which is: "The cost effective and efficient delivery of desired levels of service to customers and the community" you could add on .... at an acceptable level of risk, but this may be complicating it. Remember: Assets exist to provide value to the organisations and stakeholders Asset management transforms the strategic intent of organisations into technical and financial decisions, plans and activities The alignment of asset management Policies, Strategies and Plans with the Business Plan Objectives, the Strategic Purpose and the Vision and Mission of organisations provides the "clear line of sight" and context of why activities and investments are undertaken. The application of asset management then provides the assurance that the assets fulfil their required function in the most effective and efficient way to deliver the required level of service without exposing the organisation to unacceptable levels of risk. Simple as that. You can expand and complicate it by listing all the separate elements etc. but the overall aim is the same and can be applied to all types of assets / infrastructure. ------------------------------------------- Brian Sharman Associate Director AECOM New Zealand Ltd -------------------------------------------

  • 9.  RE:Aim of your Asset Management group

    Posted 03 September 2013 17:49
    I think I would start from the top and define the outcome first. Outcome is the impact on the community so it would be something like: "The community receives appropriate and sustainable, asset based services at an affordable cost" Then you work down and define the internal and external outputs which will result in the outcome(s) specified. these might include: "Fully defined and costed service levels for all aspects of asset based services" "Integrated asset management services responding to all changes in variables(drivers)" "Financial information as required for the following purposes Asset Production Management and production efficiency measurement Financial accounting in accordance with relevant standards and policies Grant applications, management and claims/acquittals ..." "Work plans to support budgeting and works management" "Identification and management of defects" "Inspections to ensure compliance with legislation, policies, and safety requirements" and a heap more. Then you get down to defining the processes by which you produce each of the outputs, and finally the inputs needed for the processes. That all gives you something like a plan. Thee is a bit of work involved but it will pay off in reducing costs, ensuring the appropriateness of decisions, and providing a transparent decision making process. ------------------------------------------- David Grugeon Accountant Bulloo Shire Council ASPLEY QLD -------------------------------------------

  • 10.  RE:Aim of your Asset Management group

    Posted 05 September 2013 18:33
    Someone has previously mentioned lowest life cycle cost. As a start I would look at whether there are any parts of your unsealed road network that you are spending more on average per year on than it would cost if they were sealed. There will be a threshold in terms of the number of grades per yr/resheeting frequency above which it will be more economical to seal.

    I am from a small rural council with large unsealed v sealed road network. at this stage that's what we can afford and that's there are service level consequence that the community accept (or don't accept but live with). The trick is being able to explain this to the community.

    Anthony McMahon
    General Manager
    Boorowa Council



  • 11.  RE:Aim of your Asset Management group

    Posted 01 September 2013 20:13
    Ashley Thanks for summarising the discussion and keeping the interest going (and focused) on this important topic. But you are thinking like an engineer (and good on you for this). However, my sales/marketing training (outside council) says to sell anything (including a concept/service like asset management). you need to emphasise the "BENEFITS". You have fallen into the trap (a lot do) of trying to sell on the features, Your whole list involves features, not benefits. The (one) benefit is; (Good) Asset Management will allow a council to remain financially viable so it can continue to deliver acceptable (high quality) services to its community now and in the future. This is possibly the "AIM" you are looking for also. Keep up the good work and you have "dobbed yourself in". Regards ------------------------------------------- Darron Passlow Asset Management Pittwater Council MONA VALE NSW -------------------------------------------

  • 12.  RE:Aim of your Asset Management group

    Posted 05 September 2013 18:44

    A good point Darron,

    I've had a few interesting responses and I have also posted the question with the Institute of Asset Management on Linkedin and there been some interesting answers there, look up :  The aim of you Asset management Group/Department (yep it should have been your!)

    Developing an outcome approach is the best way but my experience at the moment is we are stuck in a process world. This all starts to move into an almost existential management theory, but the linking of inputs and outputs of dependent groups doesn't seem to work well. Your inputs depend on my outputs etc.

    The approach I am following is, for example; If the benefit is cost savings through maximising asset life (say seals) where do you start?

    Look at: What is the current practice for sealing, What methodologies are there, what are the options, when does it need to be done, what are the triggers, how do you get this information?:

    From: Industry documentation and standards, codes of practice, IPWEA publication(!) Looking at the seal and looking at the history of that seal, Empirical data, traffic count, material, age, climate, geology,

    Therefore: In order to maximise the life of a seal we need to know a lot about what is happening already, where do we keep this data? In a  AM database. But what data needs to be kept, in what format or standard and who manages it. Who collects it and who analysis it. Where does the analysis go and who makes the decisions.

    The key here is having the data available for analysis. So yes the benefit is the important thing that the stakeholders will understand, but my role in this is to have the data and do the analysis. So drilling back, it's having the right data. But this pushes us towards being IT people and I don't want that.

    So analysis of data in order to create cost savings might be an outcome, (just a model to illustrate idea)

    The Aim, ( a singularity)  -  Analysis of AM data (I analyse asset data)

    In order to do (all the things that need to be produced)
    • Create efficiencies in Asset management
    • Create organisational sustainability
    • Work within acceptable risk levels
    • Even out capital expenditure to reduce spikes
    • Predict reactive maintenance cost
    • Maintain technical service levels
    • Achieve advance AM practice (NAMAF)
    • Adopt ISO 55000

    Limited by (an uneducated management approach(sic))
    • Budget
    • Environmental practices
    • Staff skills
    • Available analytical software
    • Time
    • Line management relationship

    The 'in order to' component could be a very long list and I suppose these are the benefits etc These then become the tasks my group will do and the cascading commences.

    Task - Predict reactive maintenance costs
    • Analyse current expenditure
    • Determine predictability of asset failure requiring maintenance
    • Evaluate current maintenance procedures
    • Develop options
    • Model options
    Input - maintenance metrics
    Output - 3 sigma confidence in predicting maintenance costs
    • Methodology for forecasting costs based on records
    • Cost effective maintenance procedure
    Limitation - no changes to procedure unless authorised through line management

    I don't have the answer but I do have a lot of random thoughts and if there are enough responses, primarily what people actually do as well as what they think should be done, I should be able to develop a good model.

    Ashley Bishop
    Asset Management Officer
    Benalla Rural City Council