Asset Management is not a system nor a collection of data nor is it a GIS

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Relationship of PSAB 3150 and

Asset Management

David Watt David Watt

Senior Asset Management Specialist Senior Asset Management Specialist

Associated Engineering Associated Engineering

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Quote for the day

We have more information now than we can use, and less We have more information now than we can use, and less knowledge and understanding than we need.

knowledge and understanding than we need.

Indeed, we seem to collect information because we have the ability Indeed, we seem to collect information because we have the ability to do so,

to do so, but we are so busy collecting it that we haven't but we are so busy collecting it that we haven't to do so,

to do so, but we are so busy collecting it that we haven't but we are so busy collecting it that we haven't devised a means of using it.

devised a means of using it.

The true measure of any society is not what it knows but what it The true measure of any society is not what it knows but what it does with what it knows.

does with what it knows.

Warren Bennis

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Definitions

Asset : Something I own and perform work onAsset : Something I own and perform work on

Resource: Something that I use to work on my Resource: Something that I use to work on my

assets assets

Asset Inventory: A Asset Inventory: A sustainablesustainable collection of collection of

current information

current information on all my assetson all my assets

Level of Service: A Level of Service: A quantifiable measurequantifiable measure of the of the

effectiveness

effectiveness of my management of assets using of my management of assets using indicators

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Asset Management

“The Definitive Definition”

The management of assets to assess, improve, maintain or The management of assets to assess, improve, maintain or conceivably decrease a

conceivably decrease a predetermined customer service levelpredetermined customer service level balancing available resources, legislative requirements, public

balancing available resources, legislative requirements, public expectations and asset sustainability.

expectations and asset sustainability. expectations and asset sustainability. expectations and asset sustainability.

Asset Management is not a “system” nor a collection of data nor is it a GIS It is a rational and measurable decision making system that you

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The Four PSAB Fallacies

PSAB financial statement will allow me toPSAB financial statement will allow me to

Better manage my assets / infrastructureBetter manage my assets / infrastructure

Benchmark my asset performance against Benchmark my asset performance against

others others others others

Accurately predict replacement and Accurately predict replacement and

rehabilitation rehabilitation

PSAB and Asset Management efforts are PSAB and Asset Management efforts are

mutually exclusive mutually exclusive

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PSAB Will

Provide a statement of what you own.Provide a statement of what you own.

Provide a simplistic lifecycle assessment of Provide a simplistic lifecycle assessment of

your assets. your assets. your assets. your assets.

Provide a statement of the amortized Provide a statement of the amortized

value of your assets. value of your assets.

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Asset Management Will

Provide a realistic long term capital planProvide a realistic long term capital plan

Allow focus on assets based on criticality Allow focus on assets based on criticality

not just age not just age not just age not just age

Coordinate replacements, “better bang for Coordinate replacements, “better bang for

the buck” the buck”

Allow for Level of Service AssessmentsAllow for Level of Service Assessments

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Why ?

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Inventory Valuation Amortize _StatementFinancial

PSAB TCA

Asset Management

Manage contributions, disposal, write downs etc..

Inventory Valuation _AssessmentCondition Manage_Assets

Asset Management

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PSAB TCA WHY ?

I have to do itI have to do it

I have no choiceI have no choice

It will impact my future ability to access It will impact my future ability to access

funding funding

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Asset Management

Why ?

Providing better service to your internal and Providing better service to your internal and

external customers external customers

Staff retirements, changesStaff retirements, changes

Effective defensible capital and financial planningEffective defensible capital and financial planning

Rapid and efficient access to information Rapid and efficient access to information

Im p o rt a n ce +

Rapid and efficient access to informationRapid and efficient access to information

Dwindling budgets Dwindling budgets –– aging systems aging systems

Risk / liability mitigationRisk / liability mitigation

Effective communication toolEffective communication tool

PSAB 3150PSAB 3150

Because everyone else is doing itBecause everyone else is doing it

Benchmarking ?Benchmarking ? Im p o rt a n ce

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-PSAB + AM Approach

PSAB + AM Approach

Approximately 5Approximately 5--10% more effort to add 10% more effort to add

AM related information at inventory stage. AM related information at inventory stage.

PSAB inventory build without AM PSAB inventory build without AM

component is a missed opportunity. component is a missed opportunity.

PSAB is an annual requirementPSAB is an annual requirement

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Saskatchewan Example

City of Yorkton

Sidewalk Management and PSAB

Valuation

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City of Yorkton

Sidewalk Inventory and Valuation

PSAB Assignment PSAB Assignment

Inventory of all sidewalk assets from historical Inventory of all sidewalk assets from historical

records records records records

Determine current and historical value Determine current and historical value

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PSAB Deliverable

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City of Yorkton

Sidewalk Inventory and Valuation

Asset Management

Assess overall conditionAssess overall condition

Prevent future financial lossPrevent future financial loss

Assess replacement service levelsAssess replacement service levels

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Asset Management

Deliverable

PSAB statement PSAB statement

with with Condition Condition inspections. inspections. inspections. inspections. MappingMapping CriticalityCriticality

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Results

Increase spending – current budget is not

sustainable

Repair plan aimed at worst sidewalks in

most travelled areas versus oldest

Repair plan aimed at worst sidewalks in most travelled areas versus oldest

sidewalks

Better tracking of failure mechanisms Coordinate replacements with other

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Questions ?

Delivering a PSAB statement without at least Delivering a PSAB statement without at least

considering asset management use is a considering asset management use is a

missed opportunity missed opportunity

Where will you spend future funding ? Where will you spend future funding ?