Tactical Tools and Practices

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Going Beyond Asset Management:

Tactical Tools and Practices

GFOA 2015 Western Canada Conference

Whitehorse, Sept 15, 2015

John Weninger P.Eng., MBA

Urban Systems

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What’s the right choice for your

community?

This

pool?

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Or

maybe

this

pool?

What’s the right choice for your

community?

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What’s a higher priority?

Paving

this

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What’s a higher priority?

Or maybe

replacing

this

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• What’s a sustainable funding

level for your services?

• What level of reserves do you

need?

• Can your community afford that

new ______?

What about your community

finances?

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

ISO 55000 (PAS55)



National Roundtable for

Sustainable Infrastructure



International Infrastructure

Management Manual



BC Asset Management Framework

Definitions can be found in many

best practices and resources:

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Definitions

ISO 55000 defines asset management as:

• A coordinated activity of an organization to realize value from assets. Realization of value will normally involve a balancing of costs, risks, opportunities and performance benefits.

National Roundtable for Sustainable Infrastructure

defines asset management as:

• Asset Management is an integrated business approach involving planning, finance, engineering and operations to effectively manage existing and new infrastructure to maximize benefits, reduce risk and provide satisfactory levels of service to

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Definitions cont’d

International Infrastructure Management Manual

describes asset management:

The goal of infrastructure asset management is to meet a required level of service, in the most cost effective manner, through the management of assets for present and future customers. The key elements of infrastructure asset management are:

• Taking a lifecycle approach

• Developing cost-effective management strategies for the long-term

• Providing a defined level of service and monitoring performance

• Understanding and meeting the impact of growth through demand management and infrastructure investment

• Managing risks associated with asset failures

• Sustainable use of physical resources

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Definitions cont’d

BC Framework for Asset Management:

Asset Management is an integrated process, bringing together skills, expertise, and

activities of People; with Information about a community’s physical Assets; and Finances; so that informed decisions can be made, supporting Sustainable Service Delivery.

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Making sense of many

perspectives

While these definitions are each unique in the words they use, they share some clear and important messages:

• Asset management is an ongoing process

• Asset management is an integrated approach

• Asset management is about sustainable service delivery

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Common Myths

Asset Management is NOT:

• A project • A plan

• A software program • Ever finished

• Something that is done for you • Just developing an inventory

• Just doing condition assessments • TCA / PS3150

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MAKING GOOD DECISIONS UNDERSTANDING SERVICE UNDERSTANDING RISK UNDERSTANDING COST

Asset Management is about

making good decisions

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Asset Management provides

• An ability to evaluate and communicate trade-offs between service, cost, and managing risk

• A defensible way of prioritizing projects and resources

• A path to long term sustainability of

services in alignment with community values

• Demonstration of accountability to the community

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Asset management is a

means to an end, and not

an end itself.

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How is asset management

implemented?

• A generic checklist of activities or prescribed processes • A set of templates to fill out

• A software silver bullet

• Someone to do an asset management plan for them • To be the responsibility of someone else

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Requires a tailored approach

• What are the outcomes that you are aiming to achieve? The more specific, the better.

• Being clear about objectives helps you to use existing AM best practices and resources as guides

• Implement your own process tailored to your objectives and context

The ‘why’ will drive the

‘how’

WHY

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Common challenges for small

communities

• Don’t know where to start

• Staff don’t have time

• Don’t know what to do or how

to use existing resources

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Common challenges for small

communities

• Don’t know where to start

• Get a high level picture of your assets and long term needs for replacement and start to communicate the message

• Staff don’t have time

• Build into existing processes (e.g. budget process), start small and improve incrementally

• Don’t know what to do or how to use

existing resources

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AM at different levels

• Basic, intermediate, advanced

• Still have basic components, but

complexity of information and

decisions increases

• Continuous improvement

It’s better to make small steps that actually influence what is done, than big steps that result in documents that sit on the shelf.

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Asset Management for Sustainable

Service Delivery: A BC Framework

• Outcomes focused framework (i.e. identifies why and what, but not how)

• Developed in partnership by UBCM, Ministry of

Community, Sport and Cultural Development, and Asset Management BC, with consulting support by Urban Systems

• Helps communities understand how to meet administrative requirements of the renewed gas tax agreement

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Asset Management for Sustainable Service

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The Core Elements

• ASSETS

–

Physical Infrastructure to enable

Service Delivery

• INFORMATION

– to Support informed

decision-making

• FINANCES

– Understanding Long Term Costs

of Service Delivery

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The Process

• Continuous quality

improvement process

• Incremental and

scalable

1. Assess

Capacity,

Demand and Results

2. Plan

what needs to

be done

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Assess

Assess asset management practices:

• Organizational capacity for asset management

• Current status in each of the core elements

Assess the current state of assets:

• Inventory

• Asset conditions

• Levels of service

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Available Assessment Tools

NAMS

http://www.ipwea.org

PAS 55 / ISO 55000

http://www.assetmanagementstandards.com

AssetSMART

http://www.assetmanagementbc.ca/

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Plan

• Policy:

Coordinated principles and requirements.

• Strategy:

Objectives for asset

management, organizational approach, and connection to other plans and initiatives.

• Asset Management Plan:

User-friendly, long-term document that identifies current assets, conditions, and risks, and the cost and timing of activities are required to maintain service levels.

• Integrate to Long Term Financial Plan:

Identify gaps between long term investment requirements and revenue, and adjust revenue or service levels to address the gap.

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Implement

• Implement asset management

practices

:

implement actions in the plans, build the systems and processes required to

continuously improve asset management.

• Measure and report:

assess

performance against asset management objectives

(may use a set of indicators), and report results through annual and financial reports.

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Available Planning and

Implementation Tools

BC Asset Management Roadmap

BC Framework for Sustainable Service Delivery

Infraguide E-Learning Tools

http://www.fcm.ca

International Infrastructure Management Manual (IIMM)

http://www.nams.org.nz

PAS 55 / ISO 55000

http://www.assetmanagementstandards.com

South Australia Local Government Association Guidelines

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Don’t forget to - Communicate,

Engage, Review

• Ongoing and throughout the process

• Develop alignment internally

• Understand expectations and

priorities of the community

• Communicate risks, service level

and cost trade-offs

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