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    International Infrastructure Management Manual

    Copyright:

    © All Rights Reserved
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    Download as pdf
    1K views26 pages

    Infra 1 5 IIMM Chapter 1

    Uploaded by

    Romen Real
    International Infrastructure Management Manual

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    © All Rights Reserved
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    International Infrastructure Management MANUAL eyes & SS vf Sa XY 4 %» 2006 Edition This isthe tied edition ofthe International Infrastructure Managemen Manual ‘his Manual was developed with public and private sector indstry input fom Australi New Zealand United States, South Afrgg andthe United Kingdom. It was d 1 peomone best management practic forall infrastructure assets regardless of ownership oF location Important Note to Readers Wh Goveeriment Poginsering Neve Zealand Inc TN information contained inthis Manual is sed to be vores at the ime of publication the Assocation of Loc SENIUM the Institute of Public Works Engincering of Austrais,and this working parties and agent involved in preparation and publication, de not accept any Habliy for ts contents or for any consequences arising from its use is morkiscopyrighr of the Associaton of Losal Government Ea wering of Australia (IPWEA). Apart writen permission frome the cern New Zealand bie INGENIUM sd ue the NZ C the ie Warks orm any ase a per 'NAMS) Group - sonic of INGENIUM. R he publishers radaced by ony person wi men sis a slvuld be aes Association of Local Government Engineering NZ Inc (NGENIUM) (NAMS} Group. National Asset Management St PO Box 118, Thames 2801, New Zealand Telephone: +64-7-868 3 Fae + 64-7-868 3930 ‘ebsites wow ngenium.ong.nz Emails ingeniume INTERNATIONAL INFRASTRUCTURE MANAGEMENT MANUAL VERSION 3.0 2006 ISBN No: 0-473-10685-X ©) maunselt fates we ‘ee 4 DSF iz ALGOVERNMEN: nzwwa 2 ‘soLem Intermvational Infrastructure Management Manual - Version 3.0, 2006 © Page ti —— FOREWORD ‘Weare pleased ro support this global pubic works industry initiative which has ese inthe development ofthe latest edition of the International Iniastructure Management Manual, his 2000 edition ofthe manual has hoon a tay intemationl effort to ensure the manual represents best mdeon Practice across the globe. industry working partie in the United Kingdom, United Staesand South Africa have supported the New Zealand and Australia original nitative and provided case studies and theories whic reflect the ‘st nfrastruetare management approaches in the respective countries, Infrastructure networks, such a our transport, water utility an! power supply systems, representa vast investment, made over many generations by both public and private secor organisations that support the fabri of mouezn living in ‘our communities Ii important that we employ the very best mnsgement skills practices to ensure tha relate services are delivered economically and sustainably There hasbeen a growing recognition that i i not sustainable to Focus on meeting infrastructure needs theough Jnwestmnent in infrastructure creation, without recogoising the long-term lifecycle casts associated with the ongoing ‘operation, maintenance and renewal of their networks, Improving the snagenent of infrastructure can bring major benefits by ensuring that scarce resources are used in the most cost-effective manner, thereby enhancing economic owt, improving ving standards and improving environmental sustainabii ‘The effets of major infrastructure flares often deamatically focus attention on the need to understand and manag the consequences of sch events. This Manual provides guidelines for organisations to manage all teas of infrastructure isk, develop and operate sustainable aset networks and delve the rsquired services to our commutes at te lowest ffecee cost ‘re Manal authors have ensured that this 2008 elton, shilst representing the most advance infrasructaee ‘management practices is also accesible to managers tating out on the ‘aset management’ process. Fach sth-scction provides biel overview ofthe theory, howto get started, an what would by expected ina frst asset management plan. Case studies illastrate both core and advanced approaches tailored tothe size and complexity ofthe arganisstion, ‘We commend this Manval to all public and private sector ongansitions and persons involved in providing services bse on the effective use of ntrasrct idl President, INGENIUM (Association of Local President, Institution of Municipal Engineering of Government Engineering NZ} , New Zealand Southern Africa Dave Abbott Phil Jones PLA “ fax . ee ee President, Institute of Asset Management, UK Australia Douglas Stewart (Chair of NAMS,USA International Infrastructure Management Manual - Version 3.0, 2006 © Page ill ——— ACKNOWLEDGEMENTS New Zealand Working Party aus Editon Richard Kirby (Chair), Miriam ars (Audit NZ), Philip Jones (Western Bay of Plenty Disteet Coun), Kathy ever-Tod (Palmerston Nocth City Counei Dadson (NAMS Group CEO) 2000 and 2002 Eton Iichard Kirby (Chairman NAMS Group), Brisa Milne Philp Jones (Western Bey of Plenty District Council), Brian Smith (Ante NZ) Mike Adye (Hawkes Bay Regional Coxe), Robyn Dines (Tauranga District Council), Kevin Mackey ‘Transpower NZ}, Stephen Patker (Gas Association of NZ}, Kate Pritchard (NZ Police), Dean Taylor Wangan Distiet Counc Property Working Party 2002 Eun John O'Brien (Auckland City Counsel), Callum Logan {Christchurch City Councid), Matt Ambler (Hutt Cit CCounei), Nick MeKinstry (Ma Alexander (Fe wk City Counc), fan Jin District Council, Phil Esans North Shore City Council ‘Australia Working Party 2006 Bit ‘Chris Champion (Chie Executive, [PWEA), John Howard (Jlf Root and Ascites), an Woodard (Warwick Shite Council), Brian Eavards Hobart City Council Joha Truman (Ballina Sbiee Counc, Robert Harts (Adelaide Hills Counc), Geoff Hatell ‘Onkapar Council), Gly Davies (City of Armadale), Peter Way ‘Council, Thorns Kuen (Glen Fira Cy gan City Counc 2000 apd 2002 Fito Chris Champion (Chief Executive, IPWEA), fl 2 ett Roorda & Associates), Stephen Betos(lnstitute of Howard (Devonport City Counel) fell Roos Facilities Management, Australia, Allen Mapstone (Canterbury City Counsil), Bruce Rendall (Moone alley City Council), Dr Penny Burns (AMO rernationall foln King (BSD Consultants), Don Sheff Hormer Chief Executive IPWEA), United States Working Party Stewart (Orange County Sanitation District, 1M sing Party Duncan Kose and Roger Byane (GHD South African Working Party Authors: Rob Childs (Afticon), Johann Laubscher Aco), Danie Wium (Aftieon}, Louis Bosbot MESA representa De Tjaart van der Wal, President United Kingdom Working Party Institute of Asset Management Sponsors Anglian Water Group, EaberMaunsell, Logica, London Fectricity Group, National Gri, Northumbrian Water, Yorkshire Fetes, altack, The Woodhouse Yarmnership, Severn Teen Water Authors United Kingdom Section 2008 Eton Ruth Wallsgrove(Sartas Hiden Resources) john Waodhwuse The Woodhouse Partnership) 2002 Eaition David Ford (PaberMs (FaberMtaunsel psell, Ket Brows ath Wallgrave [Sarras Hidden Resources), John Woadhouse (The Woodhouse Partnership Reviewes by Sponsors & the Directors of the institute ‘of Asset Management ‘Marketing support by Roger Edgson, Faber Maunsell and Paul C ‘Maunsell Project Management Team and Authors 6 Eainion Lisa Roberts, Graeme Hughson, Russel Seith, lennifer Mellveen, David Kel lo, tas Murray 2000 ant 2082 Bai Maunsell formerly Mevitec] and GHD: Warwick Busch, Jennifer MeUveea, Lisa Roberts, Richard Ho Tony Urquhart, Roger Byrne, Sandy Mult, Graeme Other Contributing Authors Debra Hall (Research Soi Steve Lyons (SPM Consultants Other Manual Contributors A-Vent Marketing Lid - Manual de International infrastructure Management Manual - Version 3.0, 2006 © Page wv ABOUT THE MANUAL This Manuals divided inte five Section 1: Introducing Infrastructure Asset Management Hib nefits that jnfastructure managers will gain From dog the tebniques described inthis Manus are oained in this section, introduces the concepts of holistic Aset Management (asse} matagement as an integrated part ofall organiations acuvites) and Lifsoce Asset Management ‘decisions are mate base on costs associated with all tages ofan assets ie Section 2: Asset Management Framework Salen soll ‘This section desebes the principles and process far succesfully Smplementing asset snanagenent planning Te isdesigned whl asset Daringse to progres quicKy through the steps of developing mieaningl 2syel imanagemeni plas and establishing» trem foe the ongoing shinee fast tenet paso et el ses ends : Section 3: Enabling Processes for Asset Management ‘Seatin three conisns deals. asset maragemens tandatds,goidclincs techies And vefeences oper with examples of hey ast mariage actiitics such as + developing and consulting . an service levels > demand forecasting {and msanogement + perfoonance monitoring Section 4: Asset Management Information Systems and Data Management ‘This section advites how to evaluate and implement information systems {6 support god set management planning and decstoncnakiog, ‘The section snchides guidlines for good data capture und ongoing data unagemens process Section 5: Country Specific Issues This section provides separate country spexiic information fiw Australia, ‘Nev Zealand, United States, South Africa andthe United Kingdom ‘lining the carrent context of ineastnictur net management planning [pacices neat country the relevant divers legSlationreulstioas end relied documents wbich sport this Manu ‘ptimised decision-making -mintenanee management plonnig Fisk management methods ‘wndition asessment Tinanciot management planning and reporting International infrastructure Management Manual - Version 3.0, 2006 © Page v ee TABLE OF CONTENTS SECTION 1: INTRODUCING 2.46 plement he Improvement INFRASTRUCTURE ASSET Programme 230 MANAGEMENT 27 Ast Management Ass 1a INTRODUCTION 12 aera: aaa ie hin ntastaciae Att Managemen. 12-29. PREPARING AND REVISING ASSET 112 What are inastcte Ast? 13 MANAGEMENT PLANS 238 113. What inastueure 254 Asset Management Pan dos Managemen? sa Preparation Strategy 20 “Te Benes of prove Steps Prepaning an Ast Asset Managerert 1 Management an 22 415 Catalyst focimgraved Asset Management 253. Ast Management fan Stcive 244 Practices 12 2.54 Presenting Lfecyce Strategies in Asset 416 Pape ofthis Manval 15 -Managernen Plans 2s 4.2 TOTALASSET MANAGEMENT PROCESS . 1.6 Zoe larane Rev oueioeed 288 1.21 Thelaming Process we 2.6 IMPLEMENTING THE ASSET MANAGEMENT 122 Srategc Pinning is PLAN 249 123. Asset Management Pokey 7 264. Deting Cre Series, 249 é 124 asst Management 2062 Structures and Roles 292 “acl Paring 17 2463 Contact Types and Deivery Mechanbms2.52 125. Operational Pareing 7 2d Tendering Paces and Evaltion 260 126 Revew and Condrucin Improvement 13 2.65. Iipemenation Tacs 260 1.3 CORE AND ADVANCED ASSET 2.66 tnormaton Management det MANAGEMENT 19 14 URECYCLE ASSET MANAGEMENT.......1.20 SECTION 3: ENABLING PROCESSES 1.5 USING THIS MANUAL TO DEVELOP AN FOR ASSET MANAGEMENT [ASSET MANAGEMENT PLAN 140 31 ESTABLISH AND MEASURE LEVELS (OF SERVICE: 33 3.44 Understanding your Custer 34 SECTION 2: ASSET MANAGEMENT 212 Developing Levels of Series 36 FRAMEWORK AND 3.43 Pertorance Reporting a IMPLEMENTATION 35.4 Consulting Wth Customers a6 ay 3.45. Communicate the Outeomes 325 3.2. DEMAND FORECASTING AND 2.2 ALIGNING WITH CORPORATE ASSET MANAGEMENT DIRECTION beneath ae 324 Facos tiene Doman a7 221 Reviewing Overal Cnpoate Stag = 23 : ce eae 322. Developng Demand forcast 328 seine ae core = 323. emand orca i 33 agement Fame 22.8 Demand Management 338 2.23 Unking Crptite Ase Manager ice cacneie aa 32. CONDITION ASSESSMENT AND 224. Coe end Acanced fase! Management PERFORMANCE MONITORING. Process 26 33.5 tatoducton 225 Onaring Organon! Commitment 3.13 332. Condon Montonng to Peet 23. THE ASSET MANAGEMENT TEAM sooo 2.44 Asset Lie 340 : 333. Devlopng the Condon Aswsimert 234 Ast Manager Cocrdineton a 2.4 Dec . 232 foe Management Team Resour. 2317 © 3oo egessenent aaa, 34. Typical Condon Assessment Process. 3.82 oe 33.5 Benefit Gost Considerations 24 PLANNING FOR ASSET MANAGEMENT 226 Condon Grading Stem IMPROVEMENT 223 337 Condon Axesmon Tecbiqus 3.47 DAT Boeing Cent Ase! Moragerment 328 wentorng Ase Periomance sin 234 339. Copaciy or Uiluaton Monte 242 ening sppropeate et 230 Fines or Papo : ee simi 3.4 RISK ASSESSMENT AND ee _ MANAGEMENT, Fy peace Sa ca 344.1 Integrated Risk Manageme = _ 242, ak denaieabon 34a. Rk Anas International Infrastructure Management Manual - Version 3.0, 2006 © 3.4.5 Managing Risks (Risk Treatment). 364 SECTION 5: COUNTRY SPECIFIC 3.8.6. Prioritising Projects Using Risk. 3.67 ISSUES 25. OPTIMISED DECISION MAKING. 377 iH 357 Predzive Modeling 392 21 nancies ry 3:7 FINANCIAL PLANNING AND. 529 Financal Standards a8 REPORTING 211353. SOUTHAFRICA sie Forecasts 3188 5.4 UNITED KINGDOM. 530 SECTION 4: ASSET MANAGEMENT 330 A reget Boner a 3 DATA MANAGEMENT 8 41 ASSET MANAGEMENT INFORMATION Ey Meroe syste a nape sat rr GendaiceeciAintn” ©? yy ys Fi 41.2 Components ofa Compute 55.1. Current Status of Ast management. 542 4.1.3, AML Information Systems Functionality... 4.4 ee = Bas ee eee ae 4 An Overview of Key Infrastructure - AAS tdentiging AM Requirements 48 oe erere bas 444.8. Spataliniormation Systems 16 5.56 Sttegic sus For Sustenabe Water 412 DATASIRUCTURE AND NUMBERING 420 tna sentry sa 2 eee 420 ppPeNOK A: ASSET MANAGEMENT PLAN 43° DNTACOWLECTION/ MANAGEMENT » 424 posenix a: CONDITION GRADING ee ae “ ae STANDARDS. B41 432 tne Calecon oan APPENDDYC. ASSET MANAGEMENT SYSTENA roc FUNCTIONALITY c eee apPe ASSET HIERARCHY EXAMPLES... D1 ee ea ce ‘APPENDIX E: ASSET IDENTIFICATION SYSTEM REFERENCES international nfasiuclare Management Manual” Version 30,2006 © | LIST OF FIGURES SECTION 1 SECTION 3 Figue 3.1: Ast Management Process and igure 1.1.1: Aiset Management Pocess PAS 55) oo. 13 Developing Asset Maragerient is et Muaganert Srateger 2 Figure 12 1; The Total Aset Management Process. 1.6 oe Figwe 122: ines benween Sati, Tactal and Frewe 31.46 Level of ere Meese Opeiatona Pars. 17 Fgurea12: Grample of Cumer Segmentation 34 Figue 134: Top Dow’ vs Bottom Up Approsees. 1.9‘ Rigure 21.3 ramp of Spee Costomer Ness fr Ree an: Urge fel Maagene ee 138 Tangata ere » = Figure 3.1.4 Table showing Prfoemance Measie Lines th Levels of Server a7 Fgure 3.3.5: Baap of Linking Level of Service to SECTION 2 Strategic Community Outcomes Fgue 2.1.1. Flow Chart for Developing a Ung Ast Footpaths a8 Management Pars 22 pce 3.16: Exam of inking Level of Service C0 gue 2.2.4" Defining feet Manager Paces, Statege Community Outeomes = Rowe. 38 Sates nd ans 24 gigue 3.7: samp of Prormance Figue 2.22: Uneng Ase Management Pas fo ensues (pages) Poreen) Stati Pisa Outcomes 25 igre 3.18: Examples oF Unsuccessful Performance Figure 2.23: Table Linking Objectives wth asus (2 ges). 395-216 Aerevement Asset Management Figue 319° Seve Gap Model 38 Pracice 26 Figue 3.1.10: Aopropiate Types of Consstaion Figure 2.24 Ciera for Asesing Contormity 10 nee Cae cau an Core’ and “Advanced Levels of AM In Figure 3.1.11 Table Showing Maximum Stic New Zealand 2a stor fr some Sample Sees 324 Figue 2.3.1: Sepration of Roles 216 Figure 3.1.12: Question Design and Balanced Figure 232: Type Asset Management Unbalanced Sele 328 Team stature 246 Figure 3.1.1: Stages in Developing 2 Customer Figue 2.33: Press for Deveoping and peal 235 Implementing 2 Taning Programe... 220 xapl of Reporting Pr Figure 3.4.14: Bxarpl of Reporting Prtrmance Figure 2.3.4: Asset Management Capecy ung 221 io a2 Figure 24.1, Asset Management an opts Figure 3.2% Table Showing Some Factors nfluending nd Output aa es a8 Figure 24.2; Exanple:Pretetaion of « Gap Aras 228 sigue 3.2.2 Flom Char for Asesning Demand Figure 24°: Tele Showing Typcal Asst fasagement Options 335 tesagenent improvement Tasks. 230 Figure 32.3: Typical Demand wnagement Fhgue 24.4 brarpe~Presntaton of Serpe Sates © paged 336-337 Cost Benet Anais 231 Figure 3.3.1: Asset Decay rie 340 Figure 2.4.5: Asset aragement improverent Figue 33.2: Process How Chart for Doveopng Programme hverreationshps and Condon tontonng Programmes... 342 Ince Pret uration 232 figure 333: Table Showing Cost Bonet Analy of Figue 2.86: pletion Steps 236 Condien itontaring Programmes vo 343 figue 2.7: Table Showing Continuous fs. ceeicar ie 3a Improvement arr 238 figue 33:5; ntemethate Condon Rating Model 3-44 Figure 2.48: Table Showing Atinty Rating Scale Figure 236. ASophsteted Condtion Asesiment Detnos. 238 Pode! 345 Figure 2.52: Top Dow vs"tottom Up’ Aporacite | figure 3.37 A Table Showa the Sutbity of Some Developing Asset Management Par. 2 Condon tonto Systems fore Figure 25:3: low Chact Showing te Five Steps or Range of st Types 347 Preparing Asset Managersent Pans 243 ue 33.8 Communty Housing -Partalo Figure 2.5.41. Exampe of «Suitable Structure fre eens 249 ‘eat Management Pi 244 figue 3.39: Pubie Hovsng -Prtioko Performance gue 255° Grampa ot eet Management Panna nel 382 Staieges fr Strmnate 267 pure 34% Ra Managemet ress bas Figure 2.6.1: Table Showing Drason of Core and gue 3.42: Rak tanagement Process Lnkages 3 Seca ee Figue 3438: Rok Standard Rdstonshp (Aust) 3.55 Fae 262: Te town TR Se Mane ted Margene we framework 356 gure 2.63% Table Showrng Rl Aloestion oe A een ae Dierent Contact Types aos Figue 34a: Rsk Groupes ; igus 2.64 conte raters of Tener Fame 345: Telfer Outs aringot Evalistonsthod 260 Consegerces : Figue 265 feet Managemint Pi Frome 2.46: Probably of Faure a : et 262 Fugue 2.4.7: implcalons of Asset Faire 368 International Infrastructure Management Manual - Version 3.0, 2006 © Page vil Fgwe 348: Risk Rating Mat. 364 Figure 349: Work Prontisaton Based on Risk ou.. 367 Figure 3.4.10: Sample Outputs fom ak Model. 369 gure 34.41: Typle! Work Preritkason Using Phi Score Syste 370 Figure 3.4.12: Emergency Manegerent Panning 372 Figure 3413; Table Showing Emergency Response Plan Outine 2 pages) 376-375 Figure 35:9: ODM Process Chart 373 Figute35.2. ODM Evaluation Methods ss 381 Feue35.3: Decide the Type of Evaluation 331 gue 3.54 Types of Senetts and Coss 382 gute 35.5: Senet and Cast Considerations... 3.83 Figure 355: Example of denetis and Costsin a Food Alevation Pret 38 Fgue3.57: Predting Futwe Maintsnance Costs. 3.85, Fgure 3.8: Changein Conditon venus, ‘Maintenance Love's. oie gure 359: inputs Requited forte ODM Process 3.92 Figure 35.10% Service Delvery ves Outemes 2.96 Figure 35.1% Non-Cross Asset Optimisation 397 Faure 36. Linkage Geter Seas Oxted tasonanee Pans 3.100 figure 362° The iantenance Tk was Fire 363 Opting Paned and Urpeed Shima So 300 Fe264: Devin a ata Spon. 33 Figure 365: Grape of sk Bred Msetearee Scheding 3107 Fawe 356: Mattearce Pan Dvsopnent 2190 Fue 367. Moitrarce Woklud Panag 319 Fae 371 Opimsng Capt al Recent Cos 3.13 Figure 272: Atet taped Categories 3 18 Fre 3.73: Bement off Sructure aie fig 17. Uo Cot Pete ai Figue 375: auton hoes ain Fqwe 376 ast vation tees aia Figure 272: Dege of Aaet Operation 3.43 Figore 378 Condon aed Depecnton. 318 Feue 379. Stauhtine Deprection aia Figue 37 10: Contes Grates 38 gue 3771 Ast Moragomert ote aie SECTION 4 Fawe 4.1: Bs action Uy Ast Mangere !nformatan System Modules and nteriseet 45 Figure 42.1: Table showeng ntrmation Geneated 2 Diterent earch Levee 4a Figue 422: vertealintegration, Ase Heratchy 4.24 Figure 42.3. A Slow Chor Ssaning the Process for Estabishig Asset Wentetion Sterns 4.22 Figure 43.4: Flow Chit foram iteration Stategy 428 Fue 4.32: A Pow Chart for Being and Implementing Cate Capture 435 Figure 23.3: Data Callecton, Levels of etal Considered when Scoping Bata Cipture 42 Figue 4.3.4: Teble Showing Recon Fits for Asset Maragement Osta Framer 4.29 Figure 43.5: Table atiating some Seuces of azet Data 430 Figue sas sues Alfecting Choice of Methodology and Cost a5 gute a3. Table Showing Cost Elective ets Calecion 435 Figure 43.8: Grating System for bescibing Date Accuracy 436 SECTION 5 Figure 5.1: Infrastructure Report Cad Resa 37 FgueS21 NAMS Asset Management Manuns.. 59 Figure 52.2; Table Showing Fanci and Ner-Fnanea! Statements Requiee Sad Fguie 52:5: 2 Local Gavermmest Panning Bosuments 538. gue 53.4: Infrastructure Management Rotpiayers in South tr. sag Figure 53.2 Summary of the General Aloction cof Functions and Powers te Dstt srt oa Atanpates 55 Figure 859: The Ten Top Recommended Agenda Tess for Advancing het Managersentin the US 549 APPENDIX Fue At: ARecommendd ftastuctuce ‘Asset Managemert Flan Stuetate pages). AAAS. Figure. A Data Ey Fam or Wastewater Reveulaton Condon ASeSMeME an. BA gue 2: wstewate Retealaton Condon Assesment Ctra 82 Figue B3: Wate Supply, Stormutar so Wastewater Condon Grsing Stand Ci Sutures 82 Fewe 83: WaterSupply Stormwater and vasowater Corton Grading Standines: Meenas! 2nd Hectic Asete 82 Figue BS: An bxamle of 3 Conlon Grading Sion fora ridge 83 Figure B6: Brg Condition Rating Exampe 83 Figure B7: — Conditon Grading System for Bulaing Assets ea Figure £8: nets sna Lintatons of Biterent ‘Aporaaces to Property Data Cleon. BS Fguie 89: Sig, ktermedate and Sophisticated Approach ta Property Data Colecon =... BE gute B10: Buampe of SponsteltAest Condibon Gracin Stern a7 gue ®t trample of Shetty Asse Condition Grading Sytem ea Fgute 812° A Condition RotingforCstess Most for Lined Chanel Bs Fgue B13: A Condition Rating for Detess odes for Fenny: Faure 8.14: A Corton Rating for Diese odes fr Presse Pieines ant Figure C1 Functions of Asetttanagement System Mads 5 pages) crc Figure Bt) Asser Hrichy Examples pases) 04-05 gue Et: Waterman Numbering ‘Sweet sequent! £2 Figute £2: Sener Nurberng - Cd Referens. Ed Figule 3 Sewer tumbenng - Catchers Fuse E4 —Typlel Road Asset Sections Pue= 5 Typca! Pas Ase ertestion Feute€6 Typical aiage Assets Clstieation! entiation Techies Fe International infrastructure Management Manual - Version 3.0, 2006 © Page ix LIST OF CASE STUDIES & EXAMPLES SECTION 1 Asset Management - UK Approach Banal of Asset Management Planning ote industy eves of Asset Management Plaraing Pointe Generation ‘he Aes Managersent Improvement ‘Approseh of USA Water Authority SECTION 2 -AParesAuthonty Poly Statement ‘A Water Auhonty's Corporate Asset Management Objectives ‘ut sAanagerentSrategy adopted by Comalce ‘Asuet Managerient Program implemertston ity of Edmonton infrastructure Stategy ‘set Management Team Improvement Project Responsbates Dbyname Caprety Siding io rtastuctre ‘Asset Management Ath improvement Projet Inpementaion fr 3 ‘all Muncy Property Benchmaking fr a8 Austaan Nunvepasty Example: Property Bencnmaring Ctegonies sed “Typical Nessus, Ls of Gap Analy Chr for Roads At Improvement Aeties Te Ble Moursins City Coune Experience ‘Applying Be IMAM Famewors {ax Improvement Programme lnpimetation ak the Motachurts Wer Resources Author Tackling the Austaian Renewal Chalege Cote Missi AM Pans Prepared in migopa ard Mpumaling, South Atrca Puble Nateaton of Hetty Network A Pans Ratonalsng te Mopeny Portfolio ‘western ausrlan Service Delvery Machansms SECTION 3 “yp! Community (Cestomer) ard Techical Level of Servier 39 Lonkig Stratepe Tipe stom Lire Outcomes with Performance Menstes a8 Dewlaprnt of Performance Masses for Design! Quid France’ Operate Mighvay Projets in Bitsh Columba 310 Levels oF Cal Services ealn Sector) Bat sessuing Service Qualty- What De Customers Realy Tha? 318 ‘ie Use of Prompt Mate for Focus Group ‘consultation azo streetscapes Consultation using Focus Groups 321 Best Valve Community Consultation or ‘Asset Related Services 323 ‘Wolermamptan Counc! Drainage Customer Chater 3.25, Noth Shore Gy Coune- Demand Forecast for cemetees 329 Assessing Factors Atfecing Witer Oeenané an Futue Housing Demand 332 Js Rick Based Approach to Demand Medeling inthe Wier ndusty 333 Land Use Study to Assess District Water ‘Development Plan Needs aa Dring ae a Demand Managemen Tol 338 ‘imp Data Colleton Apexcach 345 Sophistietea’ Data Collection Apprasch for ‘Whakatane bisvct Counc’ Cc Cente 346 eserves Asset Managerert Pan Values Assesrent 350 ramp’ An integrated Rk Managertent Fretewenk 355 ek Management Poi Statements 356 Flue Me Atfectee by Change in Ope Rtn... 3:59 Citealty Arsh 360 Sisk tanagement Poces fora Sewer Business 3.65, Risk entiation Aporonch fr ulin ASS. 3.65 Mora Shite Coun Ris Management Famenork 3.56 New Zealand Health Sect Corporate Risk Allocation of Departmental Responsibilities for Framework. 3m eee CCovonnated Emergency Response 376 ie : Lect Example MCA scoring. 389 Gace ste vals vaisoeine Mania rae 20/2006 @ as Belabity Cnted Maintenance in an Beetty Distsbuton Network Opting ito fe Management ~ National Gd Transco. Maintenance in foe Weter Main Defining Capital ana OperstionlExpendtie for Housne Assets Liceyle Costing - Devonport City Cours) Assessing Lie Cycle Costs, Hore Cty Counc a Aree Unt Replacement Cots xarpie: Lang Gondion to Assess Us Remaining fe Property Aes buample: Assessment ofan Ase Physical Ue Frame: Yauston Shet for Pavement Scface Financial Reporing, Bevonpor City Counc! Propecy Vluatons fr Financal Reporting Sew Zeal | Sophisticated Approach toa Lasue Contre Renewal Programme A Condition-B:56d Renewal Expert Programe fo Wastewater Rticuation A ase Approach To A Parks Ast Renew Progiamine Usng a Mone of Ansys Techniques for Property Renewal Programme SECTION 4 Wieser Cape Pownce Standoreed Core Asset Register Paimeston North Cty Counc» ASset informaton Review {4 Software Evaiuaton Cost/Benfit Aas ofan. At Sytem Inevacing Property iansgemest, Asset Management and Corporat Systems sng GiS ta Spatialy Bplay Aecet Data Us of Gist faeltat nfastuctre Rsk ‘Assessment Developing Busines Coe for Information Calletion Capacy Data Risk Asexemer Using a Sottware to Optimise Road Maintenance and Renewal Baampe: Gata Requiements for tM Repating RatcratsngEuistng Dit to improve Bits Columba Han Saeed Pavement Data Coizeton Sunveye Documestse Data Capture Process aie 335 sas SECTION 5 S108 National Asset Management Training Artchment: Local Goverment et 2092 3.108 toca Gavevament Act 2002: Sched 10 342 UNITED kincDOm aes “Band deli eden eres 378 Trarsco¥ pre cnt and reporting twat propose! aproach othe sect management of ter and sewerage systems test valve 7 Cade of pact for highway martesance 3129 ‘Asset management ofioa author land 3130 and buldngs| ‘The am of asset management pane for senoo uiings Telecommuniatons Bast The ole of regulatory account in egulted Industees 335 ICE Sate ef the nation (Sumer 2002). 510 515 16 International Infrastructure Management Manual - Version 3.0, 2006 © Page xi | GLOSSARY The following terns and sctunyns Gn brackets) are tse in this Manual ACCRUAL ACCOUNTING Recghition of reverse a8 they ate eammed and cepenses as they are incurred. ACTIVITY, Am activity the work undertaken on an asset or group of ansetsto achieve a desired outcome ADVANCED ASSET MANAGEMENT (AM) Asset management which employs peeve tmoulelling, ik management ad optimised decision ‘making techniques to establish asset eycle treatment ‘options and related ong term cashflow proictians. ‘See Cove Asset Management ANNUAL PLAN, A. document produced snnually by an organisation to inform stakeholders of its objectives, intended aetvities, performance, income and expenditure required fora period of one Financial yea. t may also indicate aniipated future shor-ferm income and expenditure ASSET A physica component of a facility whieh has value, enables services tobe provided and has an evonomic life of geeater than 12 months Dynamic assetshave some moving putt. while passive sets have none ASSET HIERARCHY A framework for segmenting an asset base into appropriate casiications, The asset hierarchy can be based on asset function: asset 1ype or g combination of the two. ASSET MANAGEMENT (AM) The combination of management, nancial economic, enginceringand other practices applied to physical assets with the objective of providing the required level fof serves inthe most costeective manner ASSET MANAGEMENT CO-ORDINATOR The pers appointed by an ofp isaion to ense the carporate asst managentent goals, objectives and legal obligations are ‘ondinator may aso be require to lead the asot ASSET MANAGEMENT INFORMATION SYSTEM An asset management system isa Processes, dat i software applied to peovide the fssenial outputs resluced sk and optimom ASSET MANAGEMENT PLAN A plan develope for the management of onc or more infra management tecinigues (includ technical and Financia over the lifecycle ofthe ase in the n festive manner to provide a spc ay ‘eshdle projecion forthe activities. ASSET MANAGEMENT STRATEGY Astra fucture assets that combines mul-disciplinary od level of service nificaat component of he plan ia long-term fo asset management covering the {evelopment an implementation af plans and programmes for asset creation, operation, maintenance, isposal and performance monitoring 1 ensure thatthe desire levels of sevice rshabiltation/teplacement and other operational objectives are achieved at ‘oinsum cost ASSET MANAGEMENT TEAM The ten appointed by an oxganisation to eevew and monitor the corporate asset uanagementimproversent ‘progeamme and ensare the development of integrated asset management systems and plans consistent with ‘organisational goals and objectives. [ASSET REGISTER A record of ase information considered worthy of separate identification including inventory historical, Financial, condition, construction, technical and financial information about each BASIC ASSET MANAGEMENT ‘See Core Aset Management.) BENEFIT-COST RATIO (8/C) Thy sum ofthe present vals of all bens finluding residual value, ifany) ove a specified period or the Tiel af the asset or fai, divided by the sun ? the present vale ofall cots BROOKES LAW A method of asesing tenders for contract where ders ae assessed slay on non prie (quality) trates, and price negotiations are entered into with the highs stsbute sone BUSINESS PLAN Alan produced by an organisation (or business units mn Aanual Pian int dst! ork plas for or tange of, business atvities, Activities may nasketing development, operations, technology and financial Intemational Infrastructure Management Manual - Version 3.0, 2006 © Page xii Se" CAPITAL EXPENDITURE (CAPEX) Expenditure used to create new assets orto increase the ‘opacity af existing assets beyond their original desig ‘capacity or service potential. CAPEX increases the value of asset stock, CASH FLOW ‘The stream of costs andor benefits overtime resalting Thoma project investment of avenership of an asset CLOSED CIRCUIT TELEVISION (CCTV) A method of inspecting pipes by sending a mobile ‘camera along the length ofthe pipe to visually record COMPONENTS Specific pars of an asset having independent phys ‘or functional identity and having specifi ateibutes such as different ie expectancy miaimenanes regimes, risk or eit CONDITION-BASED PREVENTIVE MAINTENANCE Preventive maintenance initiated as a result of novel of am items condition from routine or continuous monitoring. CONDITION MONITORING ‘Continuous or periodic inspection, assessment smcasurement and interpretation ofthe resltant data, {indicate the candition of specific component sos to determine the ned for some preventive or remedial ‘CORE ASSET MANAGEMENT Asset management which relies primarily on the use of an ays register, maintenarice managenient ystems, Jobrresource ma assessment, imple risk assessment and detind kel of sme inventory consol condition service, in order to establish slkernative treatment ‘options and long-term cashflow predictions, Priorities is of financial etuen ather shan deiled Fisk analysis and optimised decision-making) ‘CORRECTIVE MAINTENANCE The remedial actions performed asa result of ilure to are usualy established om the bi ssned by careying out the work restore an tem to specified condition, Corrective maintenance may or may nas be peogrammed CRITICAL ASSETS Assets for whieh the the Bnencal busines or service level consequences of file are seficently severe ta juss prevctive inspection and rehabilitation. Critical assets reshald for action thas non CURRENT ASSETS ‘hose asses which are expected to bee sold or consumed within one yar of an oryaisation’s ‘CURRENT NET REALISABLE VALUE The net value obtained upon sh ‘CURRENT REPLACEMENT COST The cust of replacing the service potential oF an existing sel by eference to some measite of capacity, with an appropriate madiorn equivalent asst DATA WAREHOUSE Asyster that is used to sentria foup of disparate slatabases in an organisation to facilitate acces nto exch of those databases, DECOMMISSION Activities required 1 take an asset ou of service DEFERRED MAINTENANCE ‘The shortll in rehabilitation work required to iiniain the service potential of an ase. DELPHI APPROACH, up decision -maki people are asked ther opinions which are thea analysed to produce a best fi ses, DEMAND MANAGEMENT Te active intervention in the market to influence technique where a number af demand fr seevies and assets with fonecst ‘consequences, usally 1 avid or defer CAPEX expenditure, De notion tha as needs are satisfied expectations rise axl management is based on the automatically and almost every aston taken to sat sdemanel will stimulate farther demang, DEPRECIATED REPLACEMENT COST (ORC) The repla allowance for wear ar consumption having regard for cient cost ofan existing asset Bess an the temaini DEPRECIATION, “The weating out, consumprin or other loss of value of conomic life a the exsing east. am asset whether arising from use, passing of time or ‘obsolescence through technolagcal and market changes I is aeounted fr hy the allocation ofthe cost ‘or valued amount ofthe ase les its resi vale DEPRIVAL VALUE The value of an asot to the present owner if the owner svene deprived af the asset and was required to continue to deliver the same level of service, Ast are valued at am ariount that represents the ents los that might be expected tobe incurred ifthe the service potential of future economic ben ‘valuation basis that reflects a the value muse of assets as part of DETERIORATION RATE The rate at which am eset a aches ule Intemational Infrastructure Management Manual - Version 3.0, 2006 © Page xii SS DISCOUNTING A teclnigue for eomnerting cash flows that accur over time wo equivalent amounts ata common point in time, DISCOUNT RATE ‘rate use to relate present and fanure money values, to convert the value ofall ture dollars tothe value ‘of dllass a. samion point in rime, us preset DISPOSAL, Activities necessary to dispose of devon ECONOMIC LIFE ‘The period from the acquisition ofthe asset x the time when thea while physically able to provide a services ecases tae the lowest cost alternative tosatisy 4 particular level of serve. The economic life is atthe maximum wen equal tothe phic life, bowever “obsolescence will often ensure tha the economic ies less tha the physical ie ECONOMIC VALUE Aa assets discountes ano valle derived by Aiscounting the free exh ofthe asset by an appropriate risk adjusts discount rate EQUITY The residual interest in the asets ofthe entity afer etuction of ts Habits FACILITIES AUDIT ‘he physical adit ofa faity, usually requized for ‘sluation ifeeyle cost analysis short-term maintenance planing and fong-term planning posposes FACILITY Acomyplex comprising many assets (eg. hospital ‘water treatment plant, recreation comple et) which ‘represents a single management unit far financial ‘operational, maintenance or ther purpases FAILURE MODES, EFFECTS AND CRITICALITY ANALYSIS (FMIECA) A technique for analysing and evaluating. maintenance egy tw ensure tha strategy orlife-cyele application has the desired reliability chars istics by ‘obviating those otc fail nes throug cemplaynent of edna ‘of operation. desating FAIR VALUE The amount fr which an asset could be ee a liability stl, b parties in a FINANCIAL REPORTING STANDARDS nyo Society of Ascountants for application far sil Financial port FINANCIAL STATEMENTS Balance shee profit and changes in financial positon, nates and aber statements which collectively are intended to gives true tind fir view ofthe sate oF affairs and profit a lass for an entity for «defined period FOCUS GROUP A methesd of consulting with customers about the service provid A focus group typically comprises 6 § people insted to purtiipate ns discussion about a spevitied topic GAP ANALYSIS ethod o oases he gap between a business emt practices and the foture desitable asset management practices Als called needs GENERALLY ACCEPTED ACCOUNTING. PRACTICES (GAAP) Appwoved financial porting standards so far as those standards apply toa particular emtys or, whee there ane no appraved stank, accounting policies that are appropriate the entity and have authoritative support within the accounting profession GEOGRAPHIC INFORMATION SYSTEM ais) Sofware which provides a means of spall viewing searching, manipulatn database INFLATION RATE A rate of increase applied to cots incurved at a fature (to tft the relat relative tow partiular time, wsvally the present INFRASTRUCTURE ASSETS Stationary syters formin ‘and analysingan electronic purchasing power of money a network and serving whole communities, here the systern ava what is intended tobe maintained indefinitely at a particular level of service potential by the continuing replacement and refarbishsnent of ts components, The network imay include normally recognised ordinary assets as -sompoments INTERNAL RATE OF RETURN we iscount rate fo which the net present value is KEY PERFORMANCE INDICATOR ‘qualitative or quotitaive measur activity used to compare actual performance agaist Standard or other target, Peformance indicators responsiveness, cost, comfort, asset performance, relish International Infrastructure Management Manual - Version 3.0, 2006 © Page xiv i i i | | {| LEVEL OF SERVICE The defined service quality fora particola wtivity fe. song) ur service area ti, sretighting) ans ‘which servis performance may be measised. Service levels sual rolane vo qalty, quantity, iaiiy, responsiveness environmental acceptability and cst, UE A measure of the anticipated ile of an asset component suchas time, amber of eyley, Satoeval ek, uiFecycLe The ele of ative fsclty goes Parough while it retains am entity 384 particule osset i. From planning and design 10 decommissioning oe disposi Lifecycle Cost The total cost ofan asset thoughout its ite inlain planning, design, construction, sequisiion, operation, ‘maintenance, rehabilitation and disposal cows LIFECYCLE COST ANALYSIS Any tetonique which allows assessment of a giver solution, archoice from among alternative siations, 00 the basis of al relevant economic somsequences ver the service ile oF the asset LOWEST PRICE CONFORMING (LPC) A method of assessing tenders for conteasis where the lowest pried tender that passes a sinionuny set standard for non-prive ates is aexpted, DAAINTAINABILITY A characteristic of design and installation aslly ‘eniie fy the time a effoe that will be reed to renin an aset as near as practicable tats new o desired condition within a given period of time MAINTENANCE All actions necessary for ztaining an ase as nso a8 practicable tits original condition, but exchuding ‘rehabilitation or renewal Fined interval maintenance suse to expres the ‘mesimum interval between maintenance rash. ‘On-coneitian mainienance is where the maintenance cto: depends upon the item reaching some predetermined condition, MAINTENANCE MANAGED ITEM (Maa) Ficher an asot 83 component ofan ase The MMI level establishes the lowest ove ofasset that should he recognised and maintuined individually Also Known as MAINTENANCE PLAN Collated inform ‘optimum maintensae ton, poicien anal procedures fr the an asi. grup oF assets, MAINTENANCE STANDARDS The standards set forthe maimenance service say contained in preventive maintenance schedules, “opetation and maintenance manuals, codes of pretice, estimating criteria, statutory rgalations and mandatory roquirements in accordance with maintenance quality objectives DAARKET VALUE The estimated seiount at which an sitet would be exchanged on the date of valuation, betwesn wil. erin an ain length st buyer and a willing ater proper marketing, and wien the parties have each acted knowledgeably, prudently and with compulsion. Market value is based on highest ad best ‘se ofthe asset and not nocesarily the enatng uses MODERN EQUIVALENT ASSETS Assets that replicate what sn extence with the most sonteective asset pevigeming the sime level of service NET PRESENT VALUE (NPV) ‘he value ofan asset the organisation, derived from the coorinued use and subsequent disposal in present monetary vals. tis the net arsount af discounted ‘otal cat inflows asing from the continued use and subsequent disposal ofthe sist ater dsducting the ‘alue ofthe discounted totl cash us, NON-CURRENT ASSETS Allassets other than curtont assets ilu assets held but not traded by a business in onder to carry out iy Uvities. Such asets are intended for uss, ok exchange, and normally facade piysical resources sich 4s land, builéings, drains, packs, water supply and sewerage systems, farm a fitting, OPERATION “The active peocess of utilising am asset which will consume esoarees such as manpower, eer chemicals and materials, Operation cost ae part of the Tifeeyele costs of an aset OPTIMISED DECISION-MAKING (ODM) Th definitions are: |. ODA is formal proses to Fdentfy ard prioritise all poten solatiuons with consideration of finan vabiliy, social and environmental responsibilty and cultural out 2. An optimisation process for considering and prioritising all options to rstify existing os patent performance flute of assets, The proces compasses NPV analysis and nsk assessment, OPTIMISED DEPRECIATED REPLACEMENT cost (oprc) The optimised replacement cos aller deducting or sown for weer oF constnyion co elect the hing economic or service life an esting asst ODRC is the surge for valuing assets im use where stor ase, far their there arena competitive Services ¢ sup, Intemational infrastructure Management Manual - Version 3.0, 2006 © Page xv — ‘OPTIMISED DEPRIVAL VALUE (ODV) This isa sete vals, rather than a valuation approach, which descibe the value houndaves for specified asets employed in monopoly markets. The rules area ‘ombination ofa cost based approach (ODRC) and the ‘sconoimtc vale where the OD is taken to he the Towest of these ‘OPTIMISED REPLACEMENT COST (ORC) ‘he minimum cos of replacing an existing asset with modern equivalent assets offering the same Fevel of service The optimisation process adjust te vl for technical and functional obsolescence, seplusasets oF over design. PAYBACK PERIOD The tne takes forthe cumulative benefits or savings ‘of an investment to pay back the original investment and other accrued costs PERFORMANCE MONITORING. ‘Continuous or periodic quantitative and qualitative ‘sesements ofthe actual performance compared with specific objectives, targets or standards PLANNED MAINTENANCE Planned maintenance activities flint three categories i) Periodic - necessary to ensure the riailty oF to sustain the design i ii) Predictive - condition monitoring activities used to predict faire ii) Prevemtive- maintenance that canbe initiate ‘without routine oF continuous checking (eg, using information contained in maintenance manuals or rmgnufacturers’ recommendations) and is not condition-based RECOVERABLE AMOUNT Is the greater ofthe amount recoverable fom an assets further used ultimate disposal and its current net reals va REHABILITATION, Works to build or replace parts or components af an asst to restore ito requited functional condition 1 extend isle, which may incorporate some sxodfication. Generally involves repaiting the ass deliver its original ewe af service (ie. hesey patching of roads, slplining of sewer mains et.) without rxorting co significant upgrading or renewal, using avaliable techniques and standards. RELIABILITY CENTRED MAINTENANCE (RCM) A process for optimising maintenance based or the reliability of the asset RENEWAL Works to upprade; refurbish or replace existing ais with facilites of equivalen eapacty or performance -apabitiy REMAINING ECONOMIC LIFE The tne resin until an ast ceases to prove the reaqired service level or economic nsefainess. REPAIR Action to restore an ite to its peevious cnddition after file or damage, REPLACEMENT The complete replacement af an asset that has reached the end of life so as 0 provide a similar, oF alternative, lve of REPLACEMENT COST The cost of replacing am existing asset witha od substantially identical new asset RESIDUAL VALUE The net market or recoverable which wood be realised from disposal of an asset or facility atthe end ofits lif RISK COST ‘The assessed annual cos or benefit relating to the consequenceof an event. Risk cost equals the costs felacing to the event multiplied bythe probability of the event occurring, RISK MANAGEMENT The application of a formal process a the range of possible values relating to key Fito associated with 2 Fisk inorder to devermine the resoltant ranges of ‘outcomes and thee probability of occurrence ROAD ASSESSMENT MAINTENANCE MANAGEMENT SYSTEM (RAMM) The computerised road maintenance management software system developed hy Transit Nee Zealand for use nationally byll New Zealand road asset manages ROUTINE CORRECTIVE MAINTENANCE CCorsestive maintenance, exchding emergency corrective and programmed cortective maintenance. ROUTINE MAINTENANCE Day day operational stvitis to keep the asset ‘operating [replacement of ight bulbs, cleaning of rast.) and which form partof the anual operating budget, including preventive rains, reparing SENSITIVITY ANALYSIS Testing ofthe variations in the ov evaluation by altering the valves of key factors about hic there might be uncertainty SERVICE MAINTENANCE Service undertaken seasonally or annually to-enable the Intemational Infrastructure Management Manual - Version 3.0, 2006 © Page xvi ee SERVICE POTENTIAL The total future service capacity ofan ase. tis normally determine by eeference to the operating ‘capacity and esonomic lie of an ase, STATEMENT OF CASHFLOWS: Disclosure of cashflows tram all sources relating ta the sof the ‘operating, financing, and investing activi “entity encompassing ll funds maintained by the entity STATEMENT OF COST OF SERVICES Disclosure ofthe costs incurred for each significant activity by the reporting entity, ‘STATEMENT OF FINANCIAL PERFORMANCE A report on the net surplusidefet and its components, arising from act that are significant forthe assessment of both past and ies or events during a given period, future financial performance. STATEMENT OF FINANCIAL POSITION Disclosure of ll assets an abilities of the entity, appropriately clasified including resources, Financing structure and contingencies, ‘STATEMENT OF MOVEMENTS IN EQUITY A reconkliation ofthe equity ofan entity a the begining of a period withthe oquityat the end of that perio. ‘STATEMENT OF OBJECTIVES A formal expression of the mission and overall ‘objectives ofthe reporting entity STATEMENT OF RESOURCES ‘A description in physical terms of the major resources held by the reporting entity: STATEMENT OF SERVICE PERFORMANCE A eport foreach signticant activity undertaken by the reporting entry, onthe degree of succes achieved in meeting agreed targets, i qualitative ond quantitative STRATEGIC PLAN A plan containing the long-eem gosls and strategies of an organisation. Strategic plans have a stgong external focus, over majar portions of the organisation and identify majo relating tothe long-term survival, value andl growth of the organisation UNPLANNED MAINTENANCE Corrective work requited in the short-term to restore targets, actions and resource allocations an asset to working condition so it cen continae to Aeliver the requized service or ro maintain its level af security and iteity. USEFUL LIFE May be expressed a iter: [a)_ The period over which a depreciable asset is expected 10 be ued or {B) The mumber of pracuction or similar units (ie. intervals pees) that is expocted to be obtained feom the asset VALUATION Assessed ase valle which may depend on the porpose for which the valuation i equired i. replacement value for determining maintenance levels, market value for levee casting and optimised depeval valve for ‘anit sting VALUE IN USE The value that speci assets contribute to the “organisation of which te the assets’ highest and best use, othe monetary mount that might be realised upon a sl, [is the value spectic ase has fr a specific use toa specific oa party without regard 10 userand is therefore non-market elated VALUE MANAGEMENT An evaluation process which addreses the technical and functional dimensions atthe early stages ofa Project (i. establishment of project wbjectives, Preparation of project bref snd consideration of conceptidesign options} to ensure a fully integrated approseh has been taken, the prot is comsistert with strategic goals and on-build solutions (including ‘demand management) have been propery assessed WEIGHTED ATTRIBUTE METHOD. ‘A method of assessing tenders for conteacts where atcbutes seating to both quality and price are vcighted according to the requirements ofthe business Intemational Infrastructure Management Manual = Version 3.0, 2006 © Page xvii ACRONYMS ‘The allowing acronyms also appear in this Manual: | as Australian Accounting Standard | aM Asset Management | satis Ast Management information Sistem | ANP Asset Management Pan | Be HenetivCost | 800 Build, Own, Operate soot Build, Own, Operate Transfer cap Computer ied Design capex Capital Fspendire cer Closed Cnet Tlevision | ee DPisounted Case woke Depreviatd Replacement Cost EMEA Failure Modes, ets and Crit Analysis FN Facts Mainenaaee Management GAAP Generally Accepted Accounting Practices é coe Gross Domestic Product cts ‘Geogeapie Information System BYAC ting Venlation Ai Conditioning eas Invrtional nail Reporting Standards tint International Iastructure Management Manat tsa tuaaton of Manipal nginetsin Southern Ati ins information Management System IPWeA Innate of Public Wars Bnginsring, Asta 1p Independent Caled Peson (N2) Re internal Roteof Keen Ke Key Perfomance Indicator UGA Loa Government Act acer tong term Cowl Community Pan (NZ) MEA Maintenance Engineering Anal MM Maintenance Managed tem NAASRA National Asosiaton of Atstraan State Roa Authoritn Naas Sotional Asset Manggement Steering Group Nn Net Present Value ops Optimised Decision Making opRc Opsimine Deprecated Replacement Cost ost Opetations and Maintenance ov pimined Deprival Yue Prt Bria Finance iia RCM halt Cone ait WV resent Vue REL Remaining Economic Lite or habitat, Operate Tasker sac Statsment of Aecounting Concepts SCADA Supervisory Control nl Data Acquisition Systema sR Beefit-Coxt Ratio sta Service Level Agreement SCRIM Sideways-forse Coefficient Routine lnvestgation Machine SMART Specific Measurable Achivable Rcievant Tinvebound SSAP Statements of Standard Accouating Practice (NZI Intemational Infrastructure Management Manual - Version 3.0, 2006 © age xvi SECTION 1: INTRODUCING INFRASTRUCTURE ASSET MANAGEMENT CONTENTS 44 INTRODUCTION 144 ‘Why Infrastructure Asset Management? 4.4.2 What are infrastructure Assets? 4.4.3 Whats Infrastructure Asset Management? 1414 The Benefits of Improved Asset Management 4.15 Catalysts for Improved Asset Management Practices 41.6 Purpose of this Manual 1.2 TOTAL ASSET MANAGEMENT PROCESS 124 The Planning Process 4.22 Strategic Planning 423 Asset Management Policy 1.24 Asset Management Tactical Planning 425 Operational Planning 126 Review and Continuous Improvement 4.3 CORE AND ADVANCED ASSET MANAGEMENT 1.4 LIFECYCLE ASSET MANAGEMENT 18 USING THIS MANUAL TO DEVELOP AN ASSET MANAGEMENT PLAN International Infrastructure Management Manual - Version 3.0, 2006 © Page 1.1 Section 1.1 esr nies AER 1.1. INTRODUCTION 1.1.1. Why Infrastructure Asset Management? All moxlern economies ae underpinned by vast infrastructure of roads and other transport systems, ‘water soppy waste disposal, nergy, televommanictions sccreational networks and propery. The infrastructure of ‘nation supports the fabric of modern living which i taken for granted until something falls or oo longer provides the expected service Iafrastructuse represents a major investment which, in developed countries, has been built up progressively over the lst 10 years of longo. This is reason enough for applying the best management skill to ensure that it continues to provide sustainable nd sconomie service. hut there are even more compelling reasons for ensuring that the best practices are appliod t0 our national infrastructure, These include: Infrastructure networks provide the platform for economic and social development efore developing countries economies can Nourish they needa base infarct to provide he foundation for efficient dstbution of services particularly transportation tlcommunicaions ener. Open water supply and sanitation, Asan example, the German Government ad to invest Iaeavily to develop the East Germany flleing reoni lcommicnications network in ston in 1990, This as seo ats just one precursor to puting Bast Germany on 8 rvore equal footing with surrounding developed The World Bank has also recognised the fink between effective infrastructure andl iving sandards by Jntradacing an Urban and Local Government States The strategy outlines 2 vision of Sustainable Cities whieh aeeliveabe, competitive, well-governed and financially sound. Infrastructure management planning supports thisstrategy by promoting sustainable use ofthe physica, as oll as natural, environment Infrastructure and property assets increasingly meet recreational and other needs of the community Traditionally parks and open spaces have proved Fecteation opportunities to the community Buildings have provided communities with places o meet and celebrate, o obtain information an aeoss onamunity resource, nd to enjoy theartsan cater activities, Other infrasteactre sch a6 telecom hough th internet fr interaction andl general Good quality infrastructure Is the comerstone of public health and safety Ie generally acknoveladge that the development ofa safe drinking water suppl ae wellas waste collection tnd treatment, are the bigs factors in ébancing the ‘verlealth ofthe comunity and incessng individual Tongevity. Communketion aetworks have become fundamental to public safey Because oftheir Good quality infrastructure mitigates potential adverse environmental impacts of society The environmental impacts of urban, industrial and rural development are mitigated by the provision of infrastructure to efetively and reliably collect treat and dispose of contaminants. The by Fines of major cites dramatically strate the extent to which urban fraseractare underpins the | Asset management practices advance the sustainability of infrastructure services ‘here is recoppition that simply chasing efisency improvements leads to false economies in the shot the long-term, [Nicieney in asset management will avs asset vsniers erm that act always sustained to continue to deliver the desired services for as long as requited Benchmarking condition and performance promotes innovation and efficiencies By benchmarking the aset management activities of network organisations aad developing cleat asset, management plans linking current and future network tion and performance, organisations have a basis International Infrastructure Management Manual - Version 3.0, 2006 © Page 1.2 Section 1.1 sons een for promoting innovation through performance-ased facltes management contacts, ‘has infrastructure networks not only provide an «essential platioem for economic asuancement, but also Increasingly deal with recreational, artistic and cultural pursuits ta support the wellbeing of communities, 1.1.2 What are Infrastructure Assets? Tnfastructure assets are stationary stems (ot petworks} that serve defined commuitis where the system asa whole is intended 10 be maintained indefinitely to a specified level of service by the «continuing replacement and refurbishment ofits components, Typical inffastractre assets ate Found in + transporation networks (roads il, ports, airports) + energy supply systems (gaslectrcity oi production, transmission and distribution parks and recreation fsilites + seater utiles Grater supply, wastewater and stormwater systems) + flood protection and land drainage systems + sold waste facilites + educational and health sector fais 1+ Hibrates, administration, and ether community facilities + manufacturing and process plants + telecommunication networks, (One of the most important festures oF infastvetare networks is the degree of interdependency, not only ‘within a particular asset network, bt als fiom one network (o another. The failure of one component within a network may undermine the ability of other networks to perform for example a water main burst may disrupt traffic om a city sts) 4.1.3 What is Infrastructure Asset Management? the st requited level of service in the most cos effective ol of infrastructure asset management isto ret, ‘manner, through the management of asses for present and future customers, The key elements of infiastractureaset management taking lieeysle approach developing cost-effective management strategies far the long-term + providing» elefined ove of yevice ant rai performance International infrastructure Management Manual - Version 3.0, 2006 © understanding ane meeting the impact of growth through demand management and infrasructare + managing risks associated with asset lures + sustainable use of physical resources + continuows improvement in asst management practices, A fonmal approach tothe management of infrastructure assets is eseatal in onder to provide services inthe ‘most cost-figctive manner, and to demoustrate this ‘customers, investors and other stakeholders, Crea eoiomrcun race) Asset management as defined in the ASet Management Standard PAS 55 published by the British Standards Institution ig The systematic and coordinated asivites ana practices through whieh are organisation opioaly manages ts isk lanl expenditures over des ifeeyee for he purpose of lsc assets, and der associated performance achieving its organisational static plat (“ASSET MANAGEMENT! wins PHILOSPHY & FRAMEWORK “ane ean HO Figure 1.1.1 Aset Monagement Proess (PAS 38) ‘The clement of this deintion, which is depicted in Figure 1.1.1 and selleted in the overall structure of this Asset management philosophy and framework | setting the direction and plans for implementing sel management (Section 2 *+ Implementing the Asset Management plan — the ‘optimal programme of capital asset development | anu renewals) operational, maintenance and + Enabling Asset Management processes anc! supposing Asset Management sx data analysis (Sostion 4) applicd to hlentify needs Neve of service snd demand} and design these imal programs 4.1.4 The Benefits of Improved Asset Management Asset management benefits elate to accountability, risk saanagement, service managernent, and financial efficiency improved governance and accountability by + demonstatngo owners customsesand stakeholders that evita being snag Sustainably and deers fcr and ficient providing the basis for evaluating and balancing servicepriceiquality trade-offs + improving accountability for use of esources through published performance and financial clear aut rl forthe appropriateness of devsions taken and the associated risks providing the ability to benchmark results against similar organisations, Enhanced service management and customer satisfaction through inmproved performance and contol of service delivery tothe required standards improved understanding of service requirements and options + formal consultation/agreement with wsers on the service levels + amore holistic approach to asset management \within the organisation through msot-diseiplinary management tas Improved risk management by + assessing the probability and consequences of ast fuilre 1m Australis, sabstantal demonstrable benefits have been achioved by the country’s major urban utes in servis elbows Mee cot ee ik exponen | fpoved ovr erfcleltocsomes | For example, Hater Water Corp (serving nearly people an the East Cost as + Catopeatng costs per property by more than 40% ‘cefe fgu. + Redhuced capa expenditure by USSIA5 milion bouts years of planed eapital expenditure Reduced vil costs per property by 346 terms of Inyproved the eel of service by ring the numberof properties with low pressure fe 2000 ¢0 1700 2004, 0 properties in Improved financial efficiency by Section 1.1 erect een nie addressing continuity of service addressing the inter-relationships between diferent ‘nctorks (a chain is only as gond asits weakest link) sind risk management strategie improved decision-making based on costs and bereits oF alternatives ‘oritisation of investments interventions and justification for forward works programmesnd Funding requiteents recognition of all costs of vvningloperating assets ‘over the lifeyele oF the aes More sustainable decisions by ‘improved decision making consideringall wable ‘options including demand mnagement) and al aspects of decisions. 1.1.5 Catalysts for Improved ‘The overall importance to a commanity ofits Asset Management Practices infrastuctuce should bea sufiient driver for more formalised aset management practices. el however it soften the chance events (Failures) whi put no focus what should have been done al along. In many countries the following evens and tends have emerged as catalyts for providing a beter standard of infrastructure management I many eases tility and other nenworks are thought tu be nesting the end oftheir economic it Little systematic analysis hasbeen done to gaia reliable information about the condition and ‘Case Study: Benefits of Asset Management Planning Figure: Australi water industry and Hunter Water: iuston in operating costs er propery Intemational Infrastructure Management Manual - Version 3.0, 2006 © Page 1.4 Section 1.1 ei et Performunce ofout-of sight intastructare assets ta ‘support maintenance and renewal decisions vironmental regulators are applying stricter Financial regulators are insisting that local governments recognise and equitably eecaver the fall oss of owning aad operating infrastructure over the Teo the asses, and that both publica private Sector network operators ful justify thei api and operations expenditire programmes and related Drive sects, Failure of networks co deliver services through not acknowledging ‘thinking causing such faluees and poor response to tne twin issues of lack of strategic ‘them (Auckland power criss Melbourne gis fire and Sydney water supply scare, Increased customer expectations resulting fom greater awareness of regulatory requirements,

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