Ask Your Mates Open Forum

Tangible Outcomes of AMS

  • 1.  Tangible Outcomes of AMS

    Posted 07 August 2019 22:49
    ​Hi Everyone,

    First post, so please be gentle with me :-)

    Is anyone aware of any publicly available case studies (or be willing to share one of their own) relating to tangible outcomes that have been realised through the improvement of an Asset Management System.  I'm in the process of putting together a business case for additional budget to undertake some initiatives to improve our Asset Management System.  The first question my Leadership team will ask is, what are the stats/facts/figures for the ROI of the budget increase.


    Thanks in advance,
    Ian

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  • 2.  RE: Tangible Outcomes of AMS

    Posted 11 August 2019 18:55
    ​Ian, this is one I have pondered over. here we are implementing a new DB covering all assets and the first thought I had was to meet the NAMAF requirements, (or if you wanted to the ISO 55000). In a recent steering group meeting  I got what I would call a clear direction from the CEO, "To produce the ten year long term financial plan".  There are a lot of implied tasks with this to get to the 10YLTFP and but it focusses the aim. As you know with any DB design you need to know what reporting you need to do to know what data to gather and then how to store it. This aim has enough flexibility in it to satisfy many needs of AM while clearly being able to produce a measurable result, that the organization will understand.

    Hope this helps.



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    Ashley Bishop
    Asset Management Coordinator
    Benalla Rural City Council
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  • 3.  RE: Tangible Outcomes of AMS

    Posted 12 August 2019 21:01
    Following on from that we also produce from the AMS:
    - the draft of next year's Capital Works Plan for Roads, Buildings and Paths
    - a five year capital plan from the audits of Jetties, Lights, etc
    - the valuation of Roads, Paths, Park - Hard Infrastructure etc for the annual report
    - a record of inspections and audits for use in insurance and reports
    - data for a bunch of reports to external parties
    - data that we use to teach people how to see their assets from a AM viewpoint
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  • 4.  RE: Tangible Outcomes of AMS

    Posted 12 August 2019 21:10
    I've been watching a few AM discussions of late and I'm beginning to repeat a phrase in my head each time, "Rabbit Hole" ..... Why?

    Fundamentals: To me AM is a process of understanding the life span of assets and then financially planning for their repair/replacement. Pretty simple.

    What we have though is a complex system of data collection, data evaluation, financial assessment, financial manipulation, and so on down the hole. I'm actually a bit worried that a CEO has to make a direction that what he wants from AM is a long term financial plan. The LTFP is the outcome of the AM system, have Councils been floundering along without a LTFP because of the AM systems? No. But not because of the reasons AM managers will give but because Councils by their very nature, especially rural Councils, will always hijack the capital works program. State and Federal governments are also hell bent on doing so as well through grant schemes that only provide new infrastructure.

    So before you start worrying about the cost of a crack to repair and the exact number of cracks per metre or the type of joint in a footpath or whether or not the road pavement job is a renewal vs upgrade vs repair look at the assets more holistically, wind it back to the cost of segments, etc. I say this because I can guarantee that each year, contractor prices will change, staffing costs will blow out or simple material costs will go through the roof or we'll have another drought that will make the LTFP meaningless at a detailed level.

    We've been on the AM journey since the mid 1990's at least and yet here we are 20 plus years later worrying about details instead of producing broad scale AM plans and associated LTFP's that are flexible enough to accommodate the whims of Councils and government.

    Sorry rant over...

    cheers


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    PeterGall
    MIEAust MIPWEA
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  • 5.  RE: Tangible Outcomes of AMS

    Posted 13 August 2019 00:09
    ​Hi Peter, Paul, Nataliya & Ashley,

    Many thanks for your responses.  Gives me food for thought, and plenty to consider, in the first instance.

    Peter,

    No need to apologise for the rant, we all need to vent sometimes.  I do think, however, that the point of my original post was missed.  I'll elaborate and hopefully explain in more detail.

    My organisation currently has a documented and implemented AMS.  We have clear organisational direction through our Corporate Strategic Plan and our SAMP.  The AM Strategy talks a lot about the requirement to increase AMS maturity to realise the objectives contained in our Corp Strategic Plan.  The issue I am trying to resolve is that, in my opinion, there are gaps between where we are heading and where we are currently at. These gaps are quantified and documented in our SAMP.  There have been initiatives identified and scoped to improve our AM maturity, these are currently funded and underway (our asset-related LTFP is informed by the AMS, not vice-versa as suggested).

    My objective, and reason for asking this forum for advice, is to accelerate the improvement of our AMS through additional resources to assist with current maturity-improvement initiatives and to seek additional investment into "immature" components of our AMS.  I was looking for "examples" where additional investment into the data, information, tools, processes, resources, etc, that currently make up facets of an AMS, provided a tangible outcome.

    I also understand that organisations may not be able to share their own specific tangible outcomes, for varying reasons. I was more interested to hear if anyone in this forum had any awareness of publicly available case studies, white papers, examples, etc, so that I can validate and provide context to the assumptions we have made in our AM planning documents.  This would enable me to assess the relevance of the examples against our specific maturity improvement initiatives and see if it is worthwhile referencing the potential tangible benefits, against our required outputs, in our Asset Management Plans.

    To give an example of my chain-of-thought.......  Our SAMP may say that we lack maturity in maintenance data transference and, as a result, our helpdesk team spend too much time on manual data-entry.  The initiative to fix this, documented in our SAMP, may be to implement a cloud-based maintenance portal linked to our CMMS whereby the contractor can directly input the outcomes of their maintenance work.  It is a fair assumption to suggest that this will reduce the manual data entry required by our helpdesk, but by how much?  How much will this save in 5years? etc etc etc.  The kind of example/whitepaper/case study I am looking for will have quantified outcomes like...…"an investment of $xxx into a cloud-based contractor maintenance reporting portal reduced manual data-entry by XX% over a XX year period, thus saving $xxx in maintenance helpdesk staff costs."  If such published results do not exist, then we will simply proceed with our assumptions, and sufficiently risk assess their validity, to prove the benefits of the identified initiative.

    Hope this explains my rationale for seeking help in a little more detail.

    Thanks in advance.
    Ian





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  • 6.  RE: Tangible Outcomes of AMS

    Posted 13 August 2019 18:52
    Hi
    I have used the databases to amortize the CRC over useful life for all assets so Councillors have a ballpark figure for their  annual spend on different asset classes.
    In conjunction with the supporting documents in asset management plans  for assessment of condition, risk and Level of Service this provides them with the information so they know why they need to spend and how much.
    As the budget forums are not minuted then I am not sure what discussions flow on but it is certainly a tangible benefit.
    With finance not depreciating assets under $5,000 then asset management databases are more important for expenditure accountability .
    Hope this is  helpful and let me know if I am on the wrong track!
    Cheers

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    Margaret Brophy
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  • 7.  RE: Tangible Outcomes of AMS

    Posted 12 August 2019 21:03
    Hi Ian,

    From business management perspective, I'd suggest to first look into your organisation's strategic priorities and goals. It will give you an idea of how the improvements you are suggesting for the existing Asset Management System would add value to your organisation. For example, the new improvements might decrease time needed for analysis and/or access to certain data for making operational/strategic decisions (efficiency, could be measured in FTPs (full-time positions), i.e. $), or shorten the response time to customers' inquiries/requests (customer satisfaction).

    After you are clear on how the improvements align with your strategy, if it's still needed, you can start looking for business cases.

    Hope it helps,
    Natalia
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