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    IIMM - 2 SECCION 1 A 2 - 1 - 6

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    OSMAN CATAÑO

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    © All Rights Reserved
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    Section 1 | Introduction to Infrastructure Asset Management YM SW&et 1.1 Asset Management Drivers and Benefits 1.1.1 Infrastructure and Society All modern economies are underpinned by avast infrastructure of transport, water supply, wast dispos energy. tlecommunications, recreational networks and other community propery Te infrastractare of «nation supports the fabric of modern living and is taken for granted until something fis oF no Tonger provides the expected service. Infastructure epresents a huge societal investment which, in developed countries has been built up progressively over the Jas 100 years and longer Forthese reasons, and the ones that follow, the best management skills must be applied to ensure that our infrastructure network are resilient and provide a sustainable and economi serves. Infrastructure networks provide the platform for economic development Developing countries need asc instruct provide the foundation for efficient distibutin of vices and o enable cconomic goth ‘Aan example the Geman Goveroment had to invest hesvly to develop the tlecommunications network in Eastern Germany flowing euifiation a 199, This wae ee as jst one precursor to putting Fas Germany oma more equal footing wth surrounding developed economies. “The Word Bonk recognise the elationship between effective infasracture and economic utp nits Urban and oead GovemmentSratgy 2009 I promotes wel- panne ‘urbanisation and infastrutuce development asa means of redcing poverty, In more developed countries, rll nfatructre increasingly a driver for slecing business location and thecfore the growth of lea economies. Infrastructure and property assets meet social and recreational needs of the community “Traditionally parks and open spaces have provided recreation ‘opportunities for the community. Buildings have provided communities with places to mect and celebrate to obtain Jnformation and access to community resources, and to enjoy the artsand cultural activities. More recent, telecommanication networks have become an important tnedium fr social interaction and general recreation, as well as ‘being an economic enabler. Good quality infrastructure is the comerstone of public health and safety Avafe drinking water supply and waste dxposal nctvorks are {ey factors in advancing the oveal held ofthe community and increasing individual longevity. Well designed and ‘managed transport networks provide safer avel within and ‘between communities, Communication networks have also ‘come fundamental to publicsafty because oftheir usin emergency response. Good infrastructure supports sustainable societies “The environmental impacts of urban, industrial and url development ae mitigated bythe provision of ffasteuctare to fective and reliably collect reat and dapos of contaminant. Infrastructure an financial planning will ensure that the "use of scarce resources is maximised, that services are ‘equitably funded over time by those who use them, and that infrastructure services continue until communities no longer have need for them. Infrastructure networks are interdependent An important feature of infrastructare networks i nter- dependency, not only within a particular aset network, bat also between one network and another. The failure of one component within a network may undermine the ability ‘of many other networks to perform and have much wider ‘community implications than the direct impact ofthe initial asset failure, For example, most infrastructure services ry on cleetricity fue and telecommunications fr continuity oftheir coven service placing a much greater need for the riabiity of those services anes ear The Department of Defence inthe United States ste federal agency responsible forthe Army, the Nawy and the Air Force. With 577.000 fcites valued at USS712 bilion, across 40 counties it isthe largest property owner inthe word Infestructure porto: * approximately 175 Bases; + asses inclu’ roads, water supply, wastewate, stormwater, lect, das, hotels an residences, etal outlets (supermarkets, petro stations et), administration complexes, schoo recreational facies, childcare centres youth development cerites, hospitals marinas, wharves, patking _aeas, plusall the aed assets (contl tower, hangers, us, et) Since 2007 the Air Force has been wotkng to implement AM planning at ts installations - incorporating approaches outlined in the IMM, PAS 55, Tiple Bottom Line, Baldlge and Best Business Practice Previously, the Air Force: ‘did't suificenty know or understand the eal longer term asset need or prorties (or the risks to whichit as exposed i each could’ be funded); ‘dict have standard, deat defined levels of service, performance measures and targets; ‘dit have along tem plan to guide future Installations’ management and development; and * dit have a system fr regularly monitoring and reporting ‘overall istalaons’ performance. The limited reliability ofits data is ilustrated inthe gure belo, vith less than haf defined as reliable Data Confidence (Example: Two installations) Courtesy ofthe United States Air Force and MH vers for Developing Asset Mana it Pract Due tothe complex nature and geographical spread ofthe infrastructure, was important thatthe Ai Force have the ability 10 seeits requirements at multiple vel (.e. the india _actites and the combined acivtes a nsallation, Major ‘Command andthe Air Force as @ whole’ evel). The eventual result wll be a comprehensive, totally coordinated and integrated, “top downy bottom up” business system, ‘Changes ofthis magnitude take many years. The evertual benefits are expected to node: 1.The current very stove ppd and reactionary method of ‘operation changing toa much more integrated and proactive 2. Improved knowdeie of what assets are owned, te function and citicalty s nella ther location, material ye, condition, «pay performance, age and expected ite and valve 3.A better understanding ofthe services required now and inthe ‘uture and what wil be needed to sustainably prove them, 4.A.comprehensive system of performance measure montering and reporting, 5. Abetter understanding ofthe fue asset needs ard riots, as wel as the tre (unconstaned) funding quirements and any funding gap (deferred maintenance, 6. ten year plan fr providing these equieents fot each Instalation, Major Command, an the ir Frce as whole 7A much batter understanding ofthe ks to which he Ni Force is eed and what has be dne to mite o manage them —incuding the aby o presenta more eb ase nen arguing fr funds rom Cong 8 Mor efecive and ficient oval management ofthe Instalations by greater adherence to the pine o cycle management ~especly to iterrertion the opium ire 4. An organisational uur hat embeds and suppor the above pilosoptios oer ee 14 International infrastructure Management Manual - 2011 © Section 1 | Introduction to Infrastructure Asset Management | 40) SW 1.1.2 The Benefits of Improved Asset Management ‘fective asset management provides better accountabil sustainability sk management, service management and financial efficiency, as explained below. Strong governance and accountability by: + demonstrating to owners, customers end stakeholders that service are being delivered effectively and ecient + providing a transparent and auditable bass for making servcesish/price trade-off decisions, + improving accountability for se of resources through performance and financial indicators; and + providing the ability to benchmark results against sitar organisations More sustainable decisions by: considering al viable options (including demand ‘management and all aspect of devsions, and + ensorngalllifeeye costs are included in decision process 50 that the emphasis ion sustainable efficiencies not unsustainable short-term gins Enhanced customer service through: + improved understanding of service requirements and options, + improved performance and contr of service deivery© the equine standards and + amore hlistic approach to AM within the organisation, through mlt-diiptnary management teams Effective risk management by: + understanding the rsks related to AM and service delivery aad applying framework to prioritise risk mitigation; + applying business continuity practices, and addressing the inte-relationships between diferent networks. Improved financial efficiency by: + improved decision-making based on costs and benefits of aernatves + prioritisation of investments, interventions and asset care activities, + justification for forward works programmes and funding requirements + recognition of ll costs of owningloperating sets over the lifeyce ofthe assets + selecting the most effective procurement method and benchmarking condition snd performance to promote innovation and efciency “The fllowing two case stds summarise the experienc of ‘wo organisations that have managed to achieve quantifiable tangible benefits from implementing AM. ee eee cues acre ee rn ea Cree uses ‘iy of Cape Town Electicity Services provides elec to @ population of 24 milion. Elecrcal Support Sewiess responsible for transfocmer and sutchgsa installation and refurbishment, lectialcorstrucon ad instalation, planing an execution of capital projec, cil maintenance and constuction and corsion protecion ‘Aclimate survey was conducted in 2005 andhighighted the poor ‘sevice feels high cistomer complaints poor workforce morale, lack of leadership and common goals, and lack of necessary took, equipment and facies ‘The Electrical Support Sewvies leadership set itself ambitious targets for 2011 including refered employe status, 809001 15014001 and 04518001 accreation, siandarcsed AM work practices and effective utilisron of people and resources, The AM Improvement Plan was mobilised in 2006, and by 2010, the department had achieve: © closed maintenance work odes increasing ftom 231 in 2005 106040 in 2010, a25-old incease, while the fulltime staff reduced fom 128 0 96; 1,479,261 Value of work 4 6 501.073 0045 2009110 «the vlue of work completed was R65 milion n 2005 versus 8110.5 millon in 2010 and the average cost per ob reduced by 3855; Q ‘Average costob ra5g1839 22,350.65 20045, 20080 ‘custome satistcion ratings in 2010 were 78% (very good — excelent; and + 150 9001, 150 14001 and OSHAS 18001 screditation ‘The C's AM Improvement loumey i detailed ina further case study in Section 46. ‘courtesy of the City of Cape Town's Metropolitan Municipality ‘and the Electricity Support Services and Pragma Africa (Pty Ltd Case Study 3: Cost Efficiencies Achieved Dee eae eaeig In Australi, substantial and demonstrable bnefis have been achieved by the county’ major uban ues in sordce reliability, lower fe cle costs reduced risk exaosure and improved overall servic eves to customers. These benef fram implementing AM practices are llustated by Hunter water Corporation (serving nearly 500,000 people onthe East Coast) wich, during the 1990's, has > cat operat costs per property by more than 40% (reler figue); + reduced capital expenitue by AUS185 millon (about years of panned capital expend = reduced charged and ots per propety by 34% in tems of revenue + improved the level of service by reducing the number of ropetes with low pressure fom 4800 properties in 2000 9 1700 in 2004, a5 909} 199283 190K 188697 19989. 2G0N0T | rts rerio Courtesy of Hunter Water 1.1.3. Catalysts for Improved Asset Management Practices “The benefits described in Section 1.1.2 should be enough of driver for having effective AM practices and adoquate asst ‘maintenance. Unfrtunatelyit soften only when things _g0 wrong that proper focusis given. In many courtees, the following events and trends have emerged as catalsts for providing a beter standard of infrastructure management Ability to Finance Infrastructure Renewal In many cases utlty and other networks are nearing the end ‘of their economic lif, with some concern about the ability to ‘und major renewals while still meting growth insestment requirements. Lite systematic analysis has yet tobe done in many sectors and countries to gain reliable information about te co and performance of infrastructure assets. This impedes the ability to make good maintenance and renewal decisions, and {o predict future renewal requirements accurately. Changing Regulatory Requirements Environmental regulators are typically applying stctcr rt to manage the increasing environmental effects of growing commits ‘Financial egulators are increasingly requiring thatthe public sector recognise and equitably recover the fall coss of owning and operating infrastructure over the life ofthe assets, and that both publicand private sector network operators filly justify their capital and operations expenditure and related price Regulatory aud wail agencies are reusing increasing amounts of performance information (both financial and ron-financial) to demonstrate customers are receiving suitable services and value for money, Furthermore, many AM functions such asthe requirement for long-term plans, performance reporting and decision frameworks, are being legislated in some countries Significant Network Failures Fallre of nersonk to deliver services can occur wen there is ‘inadequate asset maintenance and investment in aise capacty and strength. Significant fice can result fom Eoth a lack of strategic thinking to prevent failures anda poor reponse when they do happen (there are mimerous examples of city-wide ot alionvvde infeastcuctre failures that were later found to be reasonably avoidable). The impacts are compounded by the increasing dependency of saietyon thee services to function, for example, reliance on tlecommunications and electricity networks to carry out simple purchases. Increased Customer Expectations Resulting from greater awareness of regulatory requirement, consumer rights and impact of service fires, There isa higher level of public scrutiny on infratructore management decisions than ever before. 16 International infrastructure Management Manual - 2011 © Section 1 | Introduction to Infrastructure Asset Management Ke 1.2 Defining Asset Management Where do we find ut about 1.2.1 Key Elements ‘The title of'asset management is pethaps misleading, but ‘snow well-embedded terminology in many infrastructure sectoes. Experienced practitioners recognise that the singular purpose of managing assetsis to deliver a service. Thisis reinforced through the infrastructure AM goal, which is: To met arequited level of service, inthe most cost effective ‘manner, through the management of assets for present and future castors ‘Therefore, asset management, activity management and service ‘management aeall adequate descriptors of the processes enable multi-national organisations to coordinate their AM processes and systems; ane * provide a ramework for AM generic principles and processes ‘hat could be built upon forthe advancement ofthe AM profession The 1S0 Standards however ae dearly about establishing the necessary management sjstems forthe management of al manner of assets, not us inastructure, with the Guidlines speling out the intent ofthe Requirements. In other words they are about spectyjing “What t do” and deal state that they are ot tying to specify the “How to” of AM, Hence the ongoing importance of Manuals such a5 the IMM wich is so valuable in providing the essential quidanc to practitioners about how to cally apply the principles espoused inthe Standard. ote, it is thought there may bea numberof sctorspecfic Manuals that suppor the UMM, ‘Courtesy of NAMS AU ; | Zz - : - ; a c 1s ; ic Section 2 | Understanding and Defining Requirements Contents 2a The Strategic Context and the Asset Management Policy. .2|2 244 ‘The Asset Management Framework, 2|3 212 evoping th Aset Management Py : mer 243 Determining he Appi evel of Asst Management Pracice. ar 21.4 Understanding the Extn Enironment 21.5 Understanding te intel Enronment 21.6 —_Undetstndng the Customer Pespete 22 23 24 75 26 Developing and Monitoring Levels of Service. 221° Introduction 22.2 Developing Levels of Service 223 Developing Effective Performance Measures 224 Customer Consultation Process 2.2.5 Consultation Techniques.. 22.6 Developing the Consultation Pan . 2.2.7 Developing Customer Charters sun 228 Performance Monitoring and Reporting. Forecasting Future Demand, 231 Introduction 232 Factors Influencing Demand. 233 Developing Demand Forecasts. 234 Dealing With Demand Forecasting Uncertainty Establishing Base Asset Knowledge 24.1 Identifying information Requirements 242 Asset Register Structure and Hierarchy. 243 Asset Identification Systers.... 244 Data Collection Processes. 245 Maintaining and Improving Data Confidence 246 Examples of Asset Hierarchies 24.7 Examples of Asset Identification / Numbering Systems..... Assessing Asset Condition, 25.1 Introduction 25.2 Condition Assessment Processes... 253 Condition Assessment Techniques. 254 Approaches for Grading Condition 255 Predicting Conition Deterioration Rates 256 Examples of Asset-Specific Condition Grading Systems. Identifying Critical Assets and Business Risks.. 26.1 Introduction 262 The Risk Management Context... Identifying Risks. Identifying Critical Assets. Evaluating the Risks Managing the Risks Monitorina and Review 2.1 The Strategic Context and the Asset Management Policy a = The Asset Management Framework The AM framework typically inns an AM Policy, [AM Strategy and AM Plan, These docarent drive the implementation of AM in alignment with the organisations strategic objstives. “The AM poie should provide cer direction as othe appropriate focus and level of AM practic expected. This Jerse eee te eee rere ‘meeting legal requirements, community needs and avaiable resources, The appropriate AM level wil aio depend onthe ots and ish sociated with the actvy ‘The AM policy should be reviewed regularly so thatit remains rlevant tothe changing business environment of the organisation, Developing an AM Strategy (sometimes called the AM action plan’ or improvement programme’ is covered in Section 4.6 ‘and the AM Plan in Section 4.2 ofthis Manual, Understanding the Organisational Context Developing the AM framework requires an understanding of the external busines divers such alginate, economic, commercial, socia nd natural environment fctors. The internal context wil als se the dicction and scope of AM in the organisation, including its vision and goals, policies, rs, strengths and weaknesses andthe existing eve of AM buy-in. ‘The external and internal contexts will influence AM decisions ina number of ways. For example, internal policies may et constraints or ditection for decision making, Regulatory standards may impose minimum aset performance standards. economic factors may infiuence the ability to source funding for asst investment. Commercial factors may affect the decision whether or not to outsource network maintenance. ‘As AM is about providing services to customers, understanding the customer context is also critical. Customers’ needs and expectations must be understood and help to drive he organisation's goals and service standards. Affordability forthe customer is often a key constraint Figure 2.1.1 illustrates that dese external, internal and customer perspectives drive the AM policy framework, service levels (Section 2.2) and future demand projections (Section 23). Figure 2.1.1: Drivers of the Aset Management Policy Learning Objectives {tthe end ofthis section the reader shouldbe abe: 1, Develop an AM Policy that clearly sets out the AM principles and expectations ofthe organisation in relation 10 development of AM practices. 2. Understand the strategic context which influences how the “organisation will undertake AM. 43. Identify key influences on AM both within and external to the organisation. 4. Know how to identify key eustomer groups and what they value Capone poate esl analy | andre en: "al dpm ms ‘pate BPs ee ayo” Debs see apart vevtin Genin w coat pk Chudineentiac coy i lea Sey eee and Mepdbytwaretemernyea, | pci ch cy aa ded ‘ot den a a sn, reper nd anes a ae a Say lara ca ‘ie cruocor sees reas an Stijl roe ep nee Figure 21.2: The Asset Management Policy MaturityIndex 2\2 International infrastructure Management Manual - 2011 © Section 2.1 |The Strategic Context and the AM Policy Rew 2.1.1 The Asset Management Framework ‘A key challenge for asset managers is demonstrating the link between AM activities and the oxgunisation’s strategic ‘objectives. This challenge can be met by developing an AM framework to guide AM activities, consisting of « documented hierarchy of AM policy, strategy and plans that: * links organisational strategic objectives withthe AM Policies and objectives needed ta deliver them; + links organisational strategic objectives with the levels of service thatthe assets should deliver; and * guides the AM priorities the work required on the assets to achieve those objectives, and the finances needed to support that work, ‘The AM policy should state the general principles and non- discretionary requirements fr the development of the AM strategy and plan The AM strategy ise high level, long-term action plan adopted to deliver the AM policy. It incorporates AM ‘objectives (hoth internal objectives and external levels ‘of service) which define the expected outcomes from {implementing the strategy. The AM strategy is typically the ‘outcome of an improvement planning process described in Section 4.6. Es ay and objecti Se ‘These concepts are consistent withthe approach described in Pass, Table 2.1.1 defines the relationships between the AM poly, strategy, objectives and the AM plan, Note that some “organisations package these documents different, for «example, combining the AM policy and strategy into a single socument. Others may cll the AM strategy an'sction plan’ ‘or ‘improvement programme’, Regardless of how the AM ‘framework is packaged, the key components should include those shovn in Table 21.1 and the documents should be signed off atthe highest level. AM Policy Principles equamets and responsi or AM, Inked ‘agansationl satel objectives, AM Strategy. AIM Objectives, Ni Facies tn Plans for AM improve ment, Ast nd Reve processes, AM Plan. AsseiServce Description, Levels of sence, Demand orcas, Viele Cou ac Figure 2.13: The Asset Management Framework rs hats ie? | Broady outinesthe principles | Spat high eve! lng-em Long-term plans usual 20 years or more for ‘and requirements for undertaking | acion plan and objectives inastyctre assets) that outinethe asset AM across the organisation ina | formanaging the assets. The | active foreach service area a asset cas, structured and coerdinated way, | implementation ofthe AM an resources io provide a defined le of Consistent with the organisation's | Strategy demonstrated though |. sence in the most cost elective way. strategic pln, the development ofthe AM plan ‘Typical | + Oxganisaonal context nd | » Aigh eel description of Sinan ofthe organisation’ svategic (Contents | importance of AM Avt practices (processes asset | goalsard key AM poles + Orgarisation’s overall vision, fata andinfermation systems) | » Levels of sence, performance standards and mission and strategic goals tobe implemented (eg sk, reporting processes + Supporting AM vision and goals | _ptination) + Demand forecasts and management ‘= Mandatory AM requirements | * AMobiectves and how they tectiques ‘+ AM policies underpinning the a Stati objectives ‘and | « Description ofthe asset portfolio strategic goals aly # Descition ofthe iecyde management ‘© AM responsibilities for ‘+ Summaries of broad plans and Activities for operating, maintaining, implemeting the poly and programmes tobe implemented | jenawing developing and cspasing of asses relationships * Pames poyamne ata | « lng em cash foc + How AM integrates into atic improverient «+ KeyM improvement actions, nui theemarssiens anes: | * Arcus repostanes | * Rarer ° processes ard tnelnes for implementing | eter Section 4.2 on developing AM plans) ‘= Audit, review and updating the strategy procedures + Performance measures 9 (Refer following AM policy measure he efiacy ofthe tM examples) ‘sategy * Aut eview and updating procedures (Refer Section 46 on developing improvement plans) Defining Asset Management Policies, Suategis, Objectives and Plans ‘The AM policy or strategy should include specific objectives related to: + AM structure, roles and responsibilities, + risk management; + delivery of services tothe standard agreed with stakeholders; + statutory compliance; + stakeholder consultation; + prsparation of AM planss + continuous review and improvement of AM process and + implementation of improvement plans for AM systems data and processes 2.1.2 Developing the Asset Management Policy “The development ofa clear and concise AM policy provides ‘asset managers with an understanding of management ‘expectations with respect to the AM outcomes and provides

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