Post on 17-Mar-2018
GHD | City of Regina – AM Adoption Project | Asset Management Framework
City of Regina
Asset Management Adoption Project
Asset Management Framework
Revision 1
February 2016
October 21, 2010
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 1
Table of Contents
1. Introduction 4
2. Overview of the Asset Management Framework 5
2.1. Business Drivers and Services 6
2.2. Planning 7
2.3. Service Delivery 7
2.4. Performance Management 8
2.5. Supporting Processes 8
3. Asset Management Framework Processes 9
4. Asset Management at the City of Regina 9
5. Reviews and Updates 9
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Appendices
Appendix A: Table A-1: Leading Practice AM Framework Processes
Appendix B: Table B-1: City of Regina AM Responsibility Matrix
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List of Abbreviations
Abbreviation Definition
AM Asset Management
EA Environmental Assessment
HR Human Resource
IT Information Technology
KPI Key Performance Indicator
LOS Levels of Service
NPV Net Present Value
PM Preventive Maintenance
PO Purchase Order
SCADA Supervisory Control and Data Acquisition
SLA Service Level Agreement
TCA Tangible Capital Assets
WO Work Order
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1. Introduction
An Asset Management (AM) Framework is a simplified representation of an organization’s processes
that describes the key elements and activities of the business that translate inputs into outputs, and
their relationship to each other. The AM Framework provides the organization with a common
understanding of its day-to-day activities in the context of the broader business, and enables
effective and efficient management, work coordination and continuous improvement.
This Report documents the City of Regina’s (the City) AM Framework, the leading AM processes
embodied in the Framework, and typical inputs and outputs of these processes. This Report also
maps current core and supporting programs against the AM Framework to demonstrate how current
practices “fit” with the Framework.
This Framework will form the foundation for planning and communication of future AM
improvements. It is expected that this AM Framework will be updated as asset management
maturity at the City continues to evolve.
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2. Overview of the Asset Management Framework
Asset Management can be best defined as an integrated business approach within an organization that minimizes the lifecycle costs of owning, operating, and maintaining assets, at an acceptable level of risk, while continuously delivering established levels of service for present and future customers. The need to reliably deliver the Level of Service that customers need, keep cost down at an acceptable level of risk is a fundamental challenge for most municipalities. This is of particular significance for the City in light of its current state of the infrastructure, economic climate and funding constraints. A key step in achieving this integrated approach to managing assets would be the establishment of a framework to that allows all of the building block of asset management to fit together enable coordination around the asset life cycle and set the stage for continuous improvement and innovation in service delivery.
The AM framework is the context within which asset management activities and initiatives will occur.
Best in class AM Frameworks follow the Deming Cycle of Plan-Do-Check-Act. Figure 2-1 provides an
overview of the key elements of the AM Framework developed as part of the AM Adoption Project.
The AM Adoption Project is part of ongoing AM development at the City and focuses on:
I. An AM Governance Structure including roles and responsibilities applicable to operating
groups, the AM Branch and other relevant stakeholders, as required.
II. An AM Policy that formalizes the City’s vision and commitment for managing City assets,
levels of service and continuous improvement.
III. An AM Framework which provides alignment between the AM Policy, Strategic Objectives,
Strategy and Asset Management Plans.
IV. An AM Strategy that provides an action plan for improving AM capability and maturity
through a detailed list of activities for a 10 year horizon. The AM Strategy consists of a gap
analysis of the City’s current AM maturity and an AM Roadmap of initiatives aimed at
improving the maturity level.
The Framework combines key business management concepts that, when implemented, collectively
facilitate the effective delivery of services.
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Figure 2-1: Asset Management Framework
The key elements of the AM Framework are discussed below:
2.1. Business Drivers and Services
Business Drivers are the external influences to the City’s business and include service requirements
such as the following:
Customer expectations (residents and businesses);
Corporate goals;
Program area requirements;
Regulatory requirements
Environmental factors, such as the general economy, aging infrastructure, technology
improvements, and political and social priorities.
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Business drivers are used in the model to prioritize inputs of resources and establish focus on
organizational activities that address the business drivers.
Services refer to the primary output of the organization. The City’s Official Community Plan
reinforces its primary service output to provide safe and efficient infrastructure.
2.2. Planning
Planning Converts the business drivers into a set of operational plans that describe how the City will
deliver services: the scope and quality of services, the programs (or processes) that will be used to
deliver the defined services and the inputs required, including financial resources, human resources,
and technology resources. The levels of planning include:
Strategic Planning which converts regulatory and customer requirements into service outcomes and overall long-term strategies (e.g., Corporate/Business Unit Strategic Plans, Policies, Long Term Funding Strategies)
Tactical Planning which develops sub-plans to allocate resources (natural, physical, financial, human, etc.) to achieve the strategic goals, while meeting defined levels of service (e.g. Master Plans, Performance Management Plan, Asset Management Plan, Human Resources Plan, Business Continuity Plans)
Operational Planning which converts tactical, medium term plans into short term executable plans and budgets (e.g., 10-Year Capital Programs, Annual Operating Budgets, Emergency Preparedness & Response Plans, Operational Standards & Specifications).
2.3. Service Delivery
Service Delivery Implements or delivers on the planning processes outputs or recommendations
around the asset lifecycle:
Asset creation – capital projects associated with design, construction and commissioning of
assets of new assets
Asset maintenance – basic and advanced techniques to maximise asset reliability and
maintain integrity based on asset criticality
Asset renewal – similar to asset creation but focused on asset upgrades, replacements and
disposals of end of life assets
Operations and programming - this focuses on efficient practices associated with operating
the various city assets to deliver services or meet program service objectives safely, meet
applicable regulations and minimise environmental impacts
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Core service delivery contributes directly to the delivery of services to program areas and covers the
entire lifecycle of an asset.
2.4. Performance Management
Performance Management Provides assurance that the City is doing what it intended to do – at
multiple levels: meeting program area’s needs (the ultimate outcome), delivering the defined scope
and quality of services (the key output), delivering the defined programs through the efficient and
effective use of infrastructure, financial, human and technology resources (interim outputs). Key
activities include:
Performance monitoring and reporting – key data is collected though out the processes around the AM Framework and is used to compute Key Performance Indicators (KPIs). These are tracked and reported as actual results against targets and goals over time
Performance assessment – focuses on assessing how well processes are being executed based on KPIs and best in class examples. Performance assessment (or benchmarking) can be done internally among departments initially and with improved maturity against external best in class comparator municipalities
Continuous improvement – leverages data and information to identify unacceptable events or processes and through structured processes, e.g. root cause failure analysis, identify ways to create additional value for the City.
2.5. Supporting Processes
Supporting processes include finance and administration, information systems and data
management, and human resources management. Each of these processes is described briefly
below:
Financial management and administration - to provide support to record & report asset
original & depreciated costs; all historical costs associated with service delivery including asset
lifecycle costs; and forecasts of future asset renewal costs, to develop short term
implementation budgets
Human resources management – to provide support to recruit, manage and develop human
resources to meet business objectives
Information systems and data management – to provide support in the design, selection,
implementation and maintenance of corporate information systems infrastructure to meet
business objectives.
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3. Asset Management Framework Processes
To further describe the City-wide AM Framework, Appendix A of the report provides a listing of the
AM processes embodied in the Framework (Table A-1), and typical inputs and outputs of these
processes. These leading practices are intended to describe a “standardized” future vision for AM
across the entire City that will minimize the lifecycle costs of owning, operating, and maintaining
assets, at an acceptable level of risk, while continuously delivering established levels of service.
Ongoing AM Development will focus on improving current programs by adopting and applying the
processes embodied in the AM Framework.
4. Asset Management at the City of Regina
Appendix B describes which groups are currently responsible for the programs and activities list in
the AM Framework (See Table B-1 in Appendix B).
5. Reviews and Updates
The Asset Management Framework should be reviewed annually during program development and
should be updated at a minimum of every five years.
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Table A-1: Leading Practice AM Framework Processes
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
PLANNING
Long Term Corporate
Strategic
Planning
• Data on future trends • Attend and act as a resource on behalf of the
Division at all City Council meetings
• Determine annually the strategic priorities of
the Division, consistent with the City's
corporate strategic plan
• Conduct annual program planning at the
committee level
• Corporate / Division
Strategic Plans
Corporate
Policy
Development
• Applicable regulations &
reporting requirements
• Participate as an effective part of the
corporate senior management team
• Policies and By-Laws
Long Term
Funding
Strategy
Planning
• Cost indices
• Historical ¤t reserve fund
amounts
• Historical, current & forecast
future revenue projections
• Master Plan projections of
future asset inventory & costs
to meet capacity & regulatory
needs
• Asset Renewal Plan projections
of future asset rehabilitation &
replacement needs & costs
• Other service delivery cost
projections including
administration, maintenance &
operations
• Develop long-term funding strategies to deal
with infrastructure deficit
• Long Term Funding
Strategy
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FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
Medium
Term
Performance
Management
Planning
• Current Corporate / Division
Goals
• Current LOS metrics (KPIs) &
targets
• Customer willingness to pay
(survey results)
• Current regulatory reporting
requirements
• Current list of programs and
assets in portfolio
• Review and update, at least annually, the
Division’s service standards to reflect changes
in business drivers, programs or assets, and to
improve effectiveness of performance
management, including:
Identify changes and trends in business drivers
such as customer expectations, corporate
requirements, regulatory requirements, and/or
other factors
Reconcile changes in business drivers against
customer willingness to pay, commercial
sustainability, and sustainability of resources
Provide input and debate in the establishment of
standards, changes to levels of service, or
development of regulation in those areas
important to the City
Develop projections of future levels of service
complete with an appropriate degree of
confidence and sensitivity analysis derived from
the degree of confidence in the source
information
Reconcile level of service and price projections
with demand projections
• Level of Service
Framework
• Performance
Management Plan
Master
Planning
(Customer
Service
Requirements
and Space
Planning)
• Historical, current & forecast
future capacity demand
• Historical, current & forecast
future regulatory requirements
• Historical & current capacity
supply
• Review and update, at least every five (5)
years, the supply and demand of the Division’s
services, including:
Identify and access all sources of customer base
growth, reconciling variances between
information from various sources
• Master Plans
• Calibrated Supply /
Demand Models
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FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
• Historical & current service,
program & asset performance
• Historical & current service,
program & asset lifecycle costs
• Current Asset Inventory
(Identifiers, Descriptors,
Geographical Location, etc.)
Project future demands using historical demand
analysis, and projections of customer base
growth, usage patterns, and any other
information, and include in those projections a
measure of degree of confidence in the
projection
Update models at a frequency which ensures
they remain valid, and use the updated models
to review projections
Reconcile demand projections with supply for
sustainability
Renewal
Planning
• Current Asset Inventory
(Identifiers, Descriptors,
Geographical Location, etc.)
• Asset Service Life
• Asset Acquisition / Service Start
Date
• Asset Failure Modes (capacity,
physical mortality, financial
efficiency, service standard
compliance)
• Historical & current asset
performance indicators (KPIs)
for each Failure Mode (e.g.,
utilization, condition, lifecycle
costs, regulatory compliance)
• Asset Replacement Value
• Risk Model (preferably
Corporate) & Asset Criticality /
Priority
• Assess Asset Risk & Identify Renewal
Strategies
Identify and document, at a level suitable for
determining asset renewal (i.e., rehabilitation,
replacement or retirement) strategies, the
failure modes of the assets / equipment
Identify the consequences and likelihood of each
failure mode and use to quantify the risk it
represents to the City directly or indirectly by
way of economic, environmental or social
consequences
Analyse various rehabilitation techniques to
reduce the consequences and or likelihood of
failures, and choose the best value option with
consideration for new techniques, new
technology, alternative service delivery
methods, and the future capability of the asset
• Populated Risk
Framework
• Renewal Strategies
• Asset End of Life
Projections
• Asset rationalizing
plan
• Renewal Business
Cases with economic
indicators
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FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
• Forecast future capacity
demand (growth projections)
• Forecast future regulatory
requirements
• Forecast of asset deterioration
based on assumptions about
future conditions & risks (i.e.,
decay models)
• Lifecycle maintenance, capital &
non-asset strategies, with
timing, costs & benefits
• Discount rate
Record results and findings, and specify
information requirements to support the asset
renewal decision
• Identify End of Life
Rationalise existing asset portfolio to identify
assets for disposal, mothballing or transfer
Identify the end of life of assets as either (i)
Operate to failure, or (ii) Renewal prior to failure
(i.e., the time at which the replacement or
rehabilitation of the existing asset becomes
economically, socially and environmentally
preferable to continuing its operation)
Document decision procedures for use in
renewal analysis and justification
Generate a projection, by asset, of end of life
• Analyze Renewal Options & Document
Solutions
Identify the need, timing and staging for asset /
system augmentation, reconfiguration or asset
disposal by considering the demand forecast,
level of service forecast, the real capability of the
existing asset, various alternative service levels
and supply options, and demand management
options
Determine the relative benefits and costs
associated with these options from the
economic, environmental and social
perspectives
Carry out a benefits-costs analysis of all options
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FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
Recommend the most cost effective option in
terms of the total business picture
Document the analysis in a business case
Asset
Management
Planning
• Current Asset Inventory
(Identifiers, Descriptors,
Geographical Location)
• Asset Service Life
• Asset Acquisition / Service Start
Date
• Asset Failure Modes (capacity,
physical mortality, financial
efficiency, service standard
compliance)
• Historical & current asset
performance indicators (KPIs)
for each Failure Mode (e.g.,
utilization, condition, lifecycle
costs, regulatory compliance)
• Asset Replacement Value
• Risk Model (preferably
Corporate) & Asset Criticality /
Priority
• Forecast future capacity
demand (growth projections)
• Forecast future regulatory
requirements
• Forecast of asset deterioration
based on assumptions about
• Produce the annual Asset Management Plan
that describes the cost effective achievement
of the City's desired level of service
Summarize the Division’s and Division’s strategic
goals and key AM policies
Document defined levels of service and
performance standards
Document demand forecasts and management
techniques
Describe the asset portfolio, including
replacement value and remaining life for various
failure modes (capacity, availability / reliability,
financial efficiency, compliance)
Analyse business risk exposure and identify
critical assets
Develop lifecycle management strategies to
operate, maintain, renew, develop and dispose
of assets incorporating failure mode and risk
analyses
Develop a long-term cash-flow forecast to
sustain the asset portfolio and compare to
current budgets
Identify candidate projects for the 10 year
Capital Program including provision of scope,
schedule and budget
• Asset Management
Plans:
• State of the
Infrastructure
Report
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FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
future conditions & risks (i.e.,
decay models)
• Lifecycle maintenance, capital &
non-asset treatments /
strategies, with timing, costs &
benefits
Identify key AM practice improvement actions
including resources and timeframes
Maintenance
Planning
• Current Asset Inventory
(Identifiers, Descriptors,
Geographical Location, etc.)
• Asset Acquisition / Service Start
Date
• Asset Failure Modes (capacity,
physical mortality, financial
efficiency, service standard
compliance)
• Historical & current asset
performance indicators (KPIs)
for each Failure Mode (e.g.,
utilization, condition, lifecycle
costs, regulatory compliance)
including frequency, cost (labor,
tool and material),and resulting
downtime, and including trends
for asset type, location
• Asset Replacement Value
• Risk Model (preferably
Corporate) & Asset Criticality /
Priority
• Develop Maintenance Strategies
Identify and document, at a level for
determining maintenance strategy, the failure
modes of the assets / equipment
Identify the consequences and likelihood of each
failure mode and use this to quantify the risk it
represents to the City directly or indirectly by
way of economic, environmental or social
consequences
Identify maintenance options for addressing
each mode of failure and choose the
maintenance strategy to return the greatest
reduction in risk per maintenance dollar
invested, or as may be dictated by regulatory
requirements (the strategy may be a blend of
reactive and preventive maintenance, including
condition monitoring, and should allow for the
future of the asset as determined from forward
planning)
Specify information requirements to support
maintenance management in the maintenance
strategy ensuring accurate information is
acquired, archived and readily accessible to
manage maintenance and to support review and
improvement
• Maintenance
Strategies:
- Predictive
Maintenance
Program (Defined
Monitoring Trigger
Points)
• Maintenance
Procedures
• Configured CWMS
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FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
• Available maintenance
treatments / strategies, with
timing and costs
• Historical & current asset
performance indicators (KPIs)
for maintenance (e.g., WR
Backlog, WO Backlog, PM
Compliance, Schedule
Compliance, % Proactive Work,
%Predictive Work, % Corrective
Work)
• Historical & current asset
performance indicators (KPIs)
for materials management (e.g.,
Average time to process PO,
Average Cost to Process a PO,
Stores Service Level, Inventory
Value, Stores Turnover)
Document the strategies and maintain strategy
version control
• Develop & Document Maintenance
Procedures
Prepare planned and unplanned maintenance
procedures, provide to maintenance personnel,
and train maintenance staff in maintenance
procedures.
Implement quality control of documented
processes for maintenance procedures
Revise procedures to include additions or
deletions to and from the asset base
Set up strategies and Procedures in the CMMS
Consumables &
Spares
Management
Planning
• Historical & current asset
performance indicators (KPIs)
for spares (e.g., cost of
materials, delivery time for
materials, usage of materials,
stock levels)
• Maintenance & material
requirements of critical
equipment based on risk based
analysis (e.g. Reliability
Centered Maintenance)
• Develop a risk based stores and spares
management strategy by which the decision
whether an item is held in stock is determined
on the basis of a business case comparing the
cost of holding the item and the risk negated
by its immediate availability
• Develop and implement a consumables
purchase and stock management process
• Develop supplier performance measures and
record keeping. Develop a preferred supplier
panel based on historical, technical and
commercial performance
• Consumables &
Spares Strategies
- Materials/Spare
parts required
- Criticality of
materials
- Expected risk /
frequency of failure
- Minimum and
maximum stock
levels
- Lead time required
for orders
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FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
• Develop a supply and stock management
strategy covering such aspects as bulk
purchase agreements and consignment stores
to optimize capital in stock holdings
- Cost of
materials/spares
Information
System & Data
Policy &
Planning
• Business processes / workflows
to be supported
• Business Case results (e.g., NPV)
for new and replacement
technology
• Business rules, value lists
• Historical & current
performance indicators (KPIs)
• Attribute by Asset Class to
support business processes
• Expected costs of new
technologies (hardware and
software costs, staffing and
training, software maintenance
and upgrades)
• Expected benefits of new
technologies (time savings,
improved processes and
performance monitoring,
analysis and reporting
capabilities)
• Plan the effective use of information
technology, establish standards and policies,
and develop corporate data models to achieve
Division-wide efficiencies
• Plan voice and data applications for corporate
Divisions, including defining requirements,
conducting feasibility studies, designing,
selecting & implementing systems
• Developed in conjunction with the IT Division
• Information
Technology Master
Plan
• Data model
• System Architecture
/ Integration
• Core Systems in
Place & Integrated
as appropriate
Human
Resources
Planning
• Historical & current asset
performance indicators (KPIs)
(e.g., Workforce Productivity,
Absenteeism, Overtime %,
Safety metrics, No. of Union
• Ensure the efficient utilization of its human,
physical, and financial resources while
maintaining a high level of management
performance standards
• Developed in conjunction with Corporate HR
• Human Resources
Plan
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FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
Grievances, Wrench on Bolt
Time, Staff Turnover)
• Current and forecast
requirements for staffing levels
and capabilities
• Cost of recruiting
• Cost of training
• Risk Profile for Potential
knowledge Loss
Business
Continuity
Planning
• Criticality of infrastructure
assets & other resources in
enabling business continuity
• Cost and downtime resulting
from different types of failures
• Costs of different response &
recovery plans
• Establish Business Continuity Planning
governance (input for Facilities & Fleet
operations)
• Analyze business impact including identifying
the City's mandate and critical
services/products, ranking the order of priority
of services/products for continuous delivery or
rapid recovery, and identifying internal and
external impacts of disruptions
• Plan for business continuity including
preparation of detailed response/recovery
plans for each critical service or product and
arrangements to ensure continuity of critical
services and products at a minimum service
levels within tolerable down times
• Implement readiness procedures including
training and exercises
• Undertake quality assurance techniques
including internal review and external audit
• Input into Corporate
Business Continuity
Plans
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FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
Business &
Marketing
Planning
• Demographic data on target
customer base
• Historical & current data on
customer choices (stated or
revealed) – choices made
relative to different prices,
convenience, time, etc.
• Conduct Business Planning
• Conduct Strategic Marketing planning
• Input into Corporate
and Divisional
Business Plans
Short Term 10-Yr Capital
Programming
• Master Plan results
• Renewal Plan results
• Asset Management Plan results
• Preliminary Design Reports
• Develop a forward capital expenditure growth
&upgrade program based on the Master Plan
• Develop a forward capital expenditure
renewal program based on the Asset
Management Plan (which is based on the
Asset Renewal Strategies)
• Develop and recommend to City Council
current and 10 year program of capital
projects based on defined levels of service,
failure mode analysis and risk analysis, and
which are responsive to the prioritized needs
of the City and funding availability
10-yr Capital Programs
- Work Scope
- Priorities
- Timing &
Coordination
Annual
Operating
Planning &
Budgeting
• Maintenance Planning results
• Consumables & Spares Planning
results
• Historical & current asset
performance indicators (KPIs)
for operations
• Develop the short term operating investment
plans based on defined levels of service,
failure mode analysis and risk analysis, and
which are responsive to the prioritized needs
of the City and funding availability
• Annual Operating
Budgets
Emergency
Management
Planning
• Failure prevention priorities
• Historical & current asset
performance indicators (KPIs)
• Develop, approve and publicize an Emergency
Response Plan (a plan of action for the
efficient deployment and coordination
of services, agencies and personnel to provide
• Emergency
Preparedness &
Response Plans
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FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
the earliest possible response to an
emergency)
Operational
Standards &
Specifications
• Historical & current asset
performance indicators (KPIs)
• International, national,
provincial & City standards &
guidelines
• Forecast future regulatory
requirements
• Equipment / Product / Design Standards
Develop and implement procedures for the
selection of items of equipment or products as
standards incorporating lifecycle cost analysis,
including economic, environmental and social
costs
Assess maintenance and operational
performance history of the candidate
equipment, product or design against standards,
expectations and legislation
Take advantage of technological change by
performing engineering assessment of new
products as potential new standards, or
comparing them with current product standards
as potential replacement standards.
Understand statutory requirements and
discretionary external standards in the
formulation of City equipment or product
standards
Document standards to secure appropriate
assets and implement document control under a
quality management system.
• Operational
Standards &
Specifications
• Design Standards
CORE SERVICE DELIVERY
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FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
Asset
Lifecycle
Manageme
nt
Asset
Procurement,
Creation /
Acquisition
Project
Management
• Project Management Manual
including standard forms
• Historical & current consultant
costs & durations
• Initiate Project
• Plan and Start Up Project
• Execute Project (see project phases below)
• Monitor and Control Project
• Close Out Project
• Consultant
Agreement including
project scope,
schedule & cost
Project
Definition and
Functional
Programming
• Customer needs (including
functional requirements)
• Relevant regulations
• Develop scope
• Analyze alternatives
• Gain agreement on scope with customer
Project defined (with
desired functionality)
and agreed to by
customer
Consultant
Selection &
Administration
• Availability of In House staff to
perform the work
• Corporate procurement By-Law
& standard consultant
agreement
• Choose use of internal staff or external
consultants for best advantage to the City
giving consideration to risk
• For external consultants:
Prepare and evaluate Request for Qualifications
Prepare and evaluate Request for Proposals
Prepare and execute Consultant Agreement
Review and approve monthly progress reports &
invoices
• Executed Consultant
Agreement
• Completed
Consultant
Assignment
Site Acquisition • Property details
• Legal advice
• Work in conjunction with Legal to acquire
desired land for construction of new
infrastructure
• Appropriate land for
infrastructure
construction or
other City use
Preliminary
Design
• National, Provincial & City
Design Standards & Guidelines
• Current Asset Inventory
(Identifiers, Descriptors,
Geographical Location)
• Develop and annually update Preliminary
Design Reports (PDRs)
- Outline existing and forecasted conditions
- Document project rationale
- Conduct inspections and assessments
including geotechnical investigations
• Preliminary Design
Report
- Existing &
Forecasted
Conditions
- Project Scope
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FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
• Historical ¤t asset
inspection & assessment results
including geotechnical
investigations
• Timing& other requirements
from other stakeholders
including external agencies,
area municipalities, utility
companies
• Historical & current asset
performance indicators (KPIs)
including asset failures,
downtime, maintenance &
operations costs
• Historical & current asset
acquisition / creation &
rehabilitation & replacement
costs & durations
- Develop recommended improvements and
scope, incorporating input from other
stakeholders
- Develop timing estimate, including input
from external agencies, area municipalities,
utility companies
- Develop cost estimates
- Document work in a report
- Rationale
- Recommended
Improvements
- Cost Estimates
Environmental
Assessment (as
necessary)
• Relevant Environmental
regulations
• Preliminary Design results
• Conduct the appropriate Environmental
Assessment
• For Class EA Projects:
Phase 1 – Problem or Opportunity
Phase 2 – Alternative Solutions
Phase 3 – Alternative Design Concepts for
Preferred Solution
Phase 4 – Environmental Study Report
Phase 5 – Implementation & Monitoring
• Public Information
Meetings
• Environmental Study
Report
• Construction
Monitoring Reports
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 25
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
Detailed Design
& Tender
Documents
• National, Provincial & City
Design Standards & Guidelines
• Current Asset Inventory
(Identifiers, Descriptors,
Geographical Location)
• Current survey information
• National, Provincial & City
Construction Standards &
Guidelines
• City wide Drawing, Asset
Naming & Asset Tagging
Conventions
• Complete 30% Detailed Design & conduct
review
• Conduct Value Engineering Workshop
• Complete 60% Detailed Design & conduct
review
• Complete 90% Detailed Design & conduct
review
• Complete 100% Detailed Design & conduct
review
• Prepare Construction Tender Documents &
conduct review
• Detailed Design
• Construction Tender
Documents
Construction
Tendering,
Administration
& Inspection
• Detailed Design & Tender
Documents
• The City’s Construction Contract
Administration Manual
including standard forms
• Advertise tender
• Conduct bidders’ meeting
• Respond to questions & prepare Addenda
• Open bids
• Review bids and prepare Bid Summary Report
• Obtain approval for award
• Prepare and execute Construction Contact
• Review and approve monthly payment
certificates
• Conduct technical inspection of infrastructure
during construction (including development
related infrastructure)
• Process Substantial Completion
• Process Total Performance
• Conduct final warranty inspection
• Executed
Construction
Contract
• Completed
Construction
Contract
• Lowest Lifecycle Cost
Assets That Meet
Stakeholder
Requirements
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 26
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
Asset Handover • Drawings, Asset Naming & Asset
Tagging Conventions
• Detailed Design & Tender
Documents
• Prepare manuals
• Prepare record drawings
• Prepare asset databases
• Enter new asset into the asset register and or
equipment register Commission assets /
equipment / facilities / sites
• Assume or occupy facility / equipment / asset
• As Constructed Asset
Drawings
• Asset Inventory
Databases
(Identifier,
Descriptor,
Geographical
Location, PSAB TCA
Classifications,
Hierarchy Levels
(Division, Division,
Service, System,
Facility / Asset Type,
Asset Component,
Asset Sub-
Component,
Location, etc.), Asset
Service Life, Actual
Asset Acquisition /
Creation / Service
Start Date & Cost ,
Other Asset
Attributes)
• O&M Manuals
Leases • Customer requirements inputs
• Divisional and Divisional needs
• Skillful negotiation of renewal of existing
leases or the development of new leases that
are win-win for customers and the Division
• Renewed leases or
new leases
Asset
Operations
• Service Level Agreement
Requirements (e.g. based on
• Ongoing cost effective operations • Results in line with
SLA metrics
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 27
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
service contracts and regulatory
compliance)
• Improved reliability
and asset useful life
Asset
Maintenance
Work Planning • Maintenance Procedures (from
Maintenance Planning)
including:
- Tasks associated with different
work requests
- Craft, material and tool
requirements associated with
tasks
- Estimated time of tasks
• Receive and review planned and emergency
work requests
• Plan proactive and emergency work:
Determine operational requirements to
complete the requested work
Estimate the type and amount of labour
resources required (e.g., internal versus
contractor, craft type, etc.)
Determine the tools and equipment required
Plan the materials (drawings, etc.) and spare
parts required
• Obtain approval for planned requested work,
as required
• Work Plan
Work
Scheduling
• Maintenance Procedures (from
Maintenance Planning)
including:
- Tasks associated with different
work requests
- Craft, material and tool
requirements associated with
tasks
- Estimated time of tasks
- Staff qualifications and
availability
• Maintain a backlog of all approved requested
work
• Build a tentative weekly schedule from the
work backlog and provide to Maintenance
Supervisor for review
• Assign daily work to the
Maintenance/Operators from weekly schedule
• Assign all emergency work for immediate
execution
• Use the CMMS to ensure
Maintenance/Operators have the right
materials, right tools and right information to
do the job
• Monitor the weekly scheduled work progress
• Work Schedule
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 28
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
Work Execution • Maintenance Work Plan &
Schedule
- Tasks associated with different
work requests
- Equipment lockout procedure
- Material, spares or tools
required
• Review job plan prior to starting the work
• Review equipment lockout to ensure work can
be performed safely
• Order, issue, return, adjust, and receive stores
• Liaise with and coordinate work performed by
contractors
• Obtain planned tools and materials from
location where they are staged
• Perform work per job plan instructions
including collecting necessary data and
conducting tests before returning asset to
function
• Communicate with Maintenance Supervisor if
problems develop during the job
• Return unused materials to stores
• Work Executed
Work
Completion
• Failure or cause codes
• Time spent to complete work
request
• Material and tools used
• Enter completion information on the work
order:
Record Failure Code and Cause Code, and any
additional comments on what was found
Document work performed
Record actual time and manpower to complete
the work
Catalogue parts used for the work
• Create maintenance work requests for any
additional work
• Make requests for changes to drawings, job
plans and/or Proactive Task procedures
• Update job status as complete or incomplete
• Work Completed &
Documented
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 29
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
• Complete and file all completed work orders
Consumables &
Spares
Management
• Consumables & Spares
Strategies
- Spare parts required
- Criticality of spares
- Expected risk / frequency of
failure
- Minimum and maximum stock
levels
- Lead time required for orders
- Cost of spares
• Procure, store and use materials required to
support the operation and maintenance of the
facilities / infrastructure
• Right Materials
delivered on Time,
Right Cost and
Quality
Asset Renewal See Asset
Creation /
Acquisition
(above)
• See Asset Procurement,
Creation / Acquisition (above)
• See Asset Acquisition / Creation above • See Asset Creation /
Acquisition (above)
Operations
& Program
Delivery
Customer
Requirements
Management
Accommodatio
n
• Accommodation
needs/requirements
• Deliver accommodation (e.g. conference
rooms, fitness centers) in line with customer
needs and regulatory requirements
• Adequate,
comfortable and
functional
accommodation
Operations
Management
Operations
Information
• Regulatory, manufacture and
Customer requirements
• Develop (and keep current) all relevant
documentation necessary to support effective
operations
• Operations Manuals,
Standard Operating
Procedures
Emergency
Response Plans
• Health & Safety requirements,
Business risk planning inputs
• Develop, maintain emergency response plans
necessary to safe guard property and people
using City’s facilities
• Conduct regular drills and make adjustments
to the plan
• Effective Emergency
Response plans
DELIVERY SUPPORT SERVICES The Division provides input to these Corporate processes and also receives services necessary for
effective service delivery
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 30
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
Financial
Manageme
nt &
Administra
tion
Financial
Management
Budget
Preparation &
Analysis
• Historical & Current Year
Budget Book
• Historical & Current Year
Actuals
• Forecast Capital Expenditures
(from 10-Year Capital Program)
• Forecast Operating
Expenditures (from Annual
Operating Plan & Budget)
• Provide input to the annual budgets/forecasts
including lease rates
• Budget Book
Financial
Accounting
• Current Asset Acquisition /
Creation & Renewal costs &
dates
• Current Operating costs & dates
• Provide input to the Corporate Finance group
as necessary to ensure the financial integrity
of the City
• Historical Asset
Lifecycle Costs
• Future Asset
Renewal Forecast
Costs
• Asset Based Costing
• Activity Based
Costing
Financial
Reporting /
Statements
• Current Asset Inventory
including Identifier, Descriptor,
PSAB TCA Classifications, Asset
Service Life, Actual Asset
Acquisition / Creation / Service
Start / Disposal Date & Cost
• Provide input as needed to Finance for the
preparation of financial statements and
financial information return and any other
required financial reporting
• Fixed Asset Reports
Financial
Planning,
Analysis &
Advice
• Debentures • Provide financial analysis programs and
planning services to all clients
• Financial Analysis
Reports
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 31
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
City
Development
Charges
• Programmed Capital Projects
required for growth
• Forecast residential and non-
residential development
• Estimate project costs based on benchmarks
derived from tenders and future forecasts
• Schedule of
development
charges per unit of
new construction
Financial
(Computer)
Systems
Development
• Business processes
• Functional requirements
• Staff capabilities
• Cost of recruiting, training
• Provide input as needed to Finance as it
relates to the Division
• FIS Successfully
Implemented and
Operational
Purchasing &
Materials
Management
Purchasing and
Inventory
Management
Processes
• City Procurement By-Law
• Business processes and
requirements
• Staff availability and capabilities
• IT tools available
• Procurement of goods and services and
disposal of surplus goods as per Corporate
policy
• Provide input to Corporate Finance on system
performance
• Purchasing &
Inventory
Functionality in Place
to support Divisional
operations
Administration • Business processes and
requirements
• Staff availability and capabilities
• IT tools available
• Office services to enable asset management
practices
• General Office
Services
Monitoring
Customer
changing needs
• Changing needs and future
demands
• Work closely with all customers to better
understand their changing needs, educate
them on potential new regulations and
solutions to their challenges
• Customer
requirements for the
medium and longer
term (feeds the
planning function)
Informatio
n System &
Data
Manageme
nt
Information
System
Acquisition &
Renewal
• Business processes
• Functional requirements
• Staff capabilities
• Cost of recruiting, training
• Provide input and support to Corporate IT
acquiring and implementing hardware and
software solutions, networking systems,
programming systems, and conducting
training programs
• Cost effective,
reliable, secure &
accessible
Information Systems
infrastructure & data
throughout the City
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 32
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
• Hardware and software that will
be platform and interface
• Cost of software, hardware
required
• Core Systems to Include:
- Financial Information management System
(FIS)
- Computerized Work/Maintenance
Management System (CMMS)
- Supervisory Control and data Acquisition
(SCADA)
- Geographical information System (GIS)
- Human Resources Management System
(HRMS)
- Project management Information System
(PMIS)
- Electronic Document Management System
(EDMS)
- Decision Support System (DSS)
to support Divisional
operations
Information
System
Operations &
Maintenance
• Information System Principles
• Inventory of the Division’s
information systems
• Provide feedback to Corporate IT with respect
to day-to-day problems
• Effective Help Desk
• Continuity of Service
Data
Management
• Data Governance Policy,
Standards & Guidelines
• Inventory of databases
• Work with Corporate IT to develop and
manage data models to achieve corporate
wide efficiencies including
• Cost effective,
reliable, secure &
accessible
Information Systems
infrastructure & data
throughout the City
to support Divisional
operations
• System Integration
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 33
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
Business
Systems
Analysis
• Research new products (relevant to the
Division’s operations)
• Make recommendations to keep technology
enablers current
• Make recommendations to modernize
technology enablers
• System
Development
Lifecycle
Advocacy • Provide public communication including
memberships on external committees, and
sales and marketing of City data
• Cost effective
legislative
requirements
Human
Resources
Manageme
nt
Administration • Current & forecast
requirements for staffing levels
& capabilities
• Current & planned staffing
levels & capabilities
• Cost of recruiting
• Cost of training
• Criticality of capabilities & staff
positions, relative to meeting
LOS & KPIs
• Provide planning input to corporate human
resources for the administration of the human
resources function
• Appropriately
Knowledgeable,
Skilled & Trained
Staff
Employee &
Organizational
Effectiveness
• Provide input to strategies to recruit, retain
and develop skilled, motivated and citizen-
centered employees that promote and
support a positive, productive work
environment
• Implement organization development services
that focus on staff development, teamwork,
service improvement, and citizen-centered
service and customer focus
• Recruitment
Strategy
• Retention Strategy
• Skills development
Plan
• Succession Plan
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 34
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
Employee
Relations
• Market remuneration for similar
positions
• Mange staff in line with agreements and City
policy
• Work with human resources to provide a
healthy, safe and accident free workplace and
to return injured workers to the job as quickly
as possible
• Collective
Agreement(s)
Employee
Services &
Systems
• Provide input to the design and update of
position classification / compensation systems
in accordance with Job Evaluation plans as it
applies to the Division
• Update the HR system with related employee
information
• Job classification and
compensation
• Updated employee
records
PERFORMANCE
MANAGEMENT
Performance Monitoring &
Reporting
Performance
Monitoring
• Defined Service Standards (LOS)
• Defined Key Performance
Indicators (KPI) & Targets
• Defined Monitoring Trigger
Points
• Actual observations, readings,
ratings, costs & assessments
• Capture, enter and verify data to support
performance reporting
• Identify gaps between actual and target,
actual and benchmarks, and actual over time
• Business Objectives
performance data
(customer
expectations,
corporate goals,
regulatory
requirements)
• Program (business
process)
performance data
including
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 35
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
effectiveness &
efficiency
• SLA performance
reporting (if
applicable)
• Asset performance
data:
- Sufficient capacity
& utilization
- Available & reliable
(including
condition)
- Financial efficiency
(lowest lifecycle
cost)
- Compliant with
regulation
- Observed measures
for Key
Performance
Indicators
Performance
Reporting
• Performance results from
internal & external peers
• Forecast performance in areas
of KPIs and LOS, based on
assumptions about future
conditions, risks and effects of
different capital investment
strategies
• Report performance to various stakeholders,
including:
Relating performance to objectives
Clarifying whether or not the service delivery
strategies have met their performance targets,
and the reasons for any significant variations
from the expected performance
Providing an objective assessment of successes
and failures
• Performance
Reports:
Business Objectives
(customer
expectations,
corporate goals,
regulatory
requirements)
Programs (planning,
core service delivery,
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 36
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
Explaining the significance of the results
reported
Providing performance comparisons (e.g. over
time, against standards, or against peers –
internal & external benchmarking) and with
reference to external factors affecting the
results
Drawing on both quantitative and qualitative
information
Providing details of trends (and expected
trends), problems and progress against specific
initiatives
Supporting statutory reporting requirements,
when applicable
support services,
performance
management)
Assets
• Benchmarking
Results
• Work/Maintenance
Management
Performance
Dashboard
Performance Assessment &
Continuous Improvement
Business
Improvement
Programming
• Results based external
benchmarking Effects of
different improvement
strategies on ability to meet
KPIs and LOS
• Leverage learnings for similar municipalities
and private industry as applicable to identify
business improvement opportunities
• Identify Extent of Gap
• Identify Type of Improvement to Close Gap:
(new policies, changes to business programs /
processes, new or upgraded assets or facilities,
enhancement to systems and/or data,
organizational changes, and staff
development)
For Program-related (rather than Asset-related)
improvements:
• Identify Program Improvement Opportunities
Identify potential program improvements
Identify potential new programs
• Inputs to Business
/Program and/or
Asset Improvement
Programming
• Improvement
Programs
• Documented
Business Processes
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 37
FRAMEWORK COMPONENT PROGRAMS INPUTS LEADING PRACTICE PROCESSES OUTPUTS
• Define and Validate Projects
Define problem related to corporate and
customer outcomes
Measure key aspects of current program and
collect relevant data
Analyze data including risk assessment and
cause-and-effect relationships
Identify possible solutions with costs and
benefits
Assess confidence in data and processes used to
define projects
Document in business case
• Prioritize Validated Projects
Apply evaluation criteria
Recommend prioritized program of projects
Continuous
Improvement
Improvement opportunities based
on monitoring key metrics in line
with targets and desired goals
• Use best practice project management
principles to implement Program-related
performance improvements, namely:
Initiate Project
Plan Project
Execute Project
Monitor and Control Project
Close Out Project
• Continuous
improvement
projects delivering
quantifiable benefits
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 40
Table B-1: City of Regina AM Responsibility Matrix (to be completed following implementation of the AM Governance Model)
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 41
FRAMEWORK COMPONENT PROGRAMS RESPONSIBILITY
PLANNING
Long Term Corporate Strategic Planning
Corporate Policy Development
Long Term Funding Strategy Planning
Medium Term Performance Management Planning
Master Planning
(Customer Service Requirements and Space Planning)
Renewal Planning
Asset Management Planning
Maintenance Planning
Consumables & Spares Management Planning
Information System & Data Policy & Planning
Human Resources Planning
Business Continuity Planning
Business & Marketing Planning
Short Term 10-Yr Capital Programming
Annual Operating Planning & Budgeting
Emergency Management Planning
Operational Standards & Specifications
CORE SERVICE DELIVERY
Project Management
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 42
Asset Lifecycle Management
Asset Procurement, Creation, Acquisition and Renewal
Project Definition and Functional Programming
Consultant Selection & Administration
Site Acquisition
Preliminary Design
Environmental Assessment (as necessary)
Detailed Design & Tender Documents
Construction Tendering, Administration & Inspection
Asset Handover
Leases
Asset Operations
Asset Maintenance Work Planning
Work Scheduling
Work Execution
Work Completion
Consumables & Spares Management
Operations & Program Delivery
Customer Requirements Management
Accommodation
Operations Management Operations Information
Emergency Response Plans
DELIVERY SUPPORT SERVICES
Financial Management & Administration
Financial Management Budget Preparation & Analysis
Financial Accounting
GHD | City of Regina – AM Adoption Project | Asset Management Framework | 43
Financial Reporting / Statements
Financial Planning, Analysis & Advice
City Development Charges
Financial (Computer) Systems Development
Purchasing & Materials Management
Purchasing
Inventory Management
Administration Monitoring changing needs of internal Customers
Information System & Data Management
Information System Acquisition & Renewal
Information System Operations & Maintenance
Data Management
Business Systems Analysis
Advocacy
Human Resources Management
Administration
Employee & Organizational Effectiveness
Employee Relations
Employee Services & Systems
PERFORMANCE MANAGEMENT
Performance Monitoring & Reporting Performance Monitoring
Performance Reporting
Performance Assessment & Continuous Improvement Business Improvement Programming
GHD | City of Regina – AM Adoption Project| Asset Management Framework |
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© GHD Inc. 2013
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Document Status
Rev No.
Author Reviewer Approved for Issue
Name Signature Name Signature Date
Rev1 Aman Singh
Donna Querengesser
Aman Singh
Aman Singh
09.12.2016
Rev1 Roop Lutchman Aman Singh
Roop Lutchman
08.02.2017