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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


Appendices

Appendix A: Table A-1: Leading Practice AM Framework Processes

Appendix B: Table B-1: City of Regina AM Responsibility Matrix


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


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.


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.


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.


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


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.


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.


Appendices


Appendix A


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 &current 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



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)


future capacity demand


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



• 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




• 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



• 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



Recommend the most cost effective option in

terms of the total business picture

Document the analysis in a business case

Asset

Management

Planning



Geographical Location)

• Asset Service Life


Date




compliance)









Priority

• Forecast future capacity

demand (growth projections)


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



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





Date




compliance)






including frequency, cost (labor,

tool and material),and resulting

downtime, and including trends

for asset type, location




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



• Available maintenance

treatments / strategies, with

timing and costs



for maintenance (e.g., WR

Backlog, WO Backlog, PM

Compliance, Schedule

Compliance, % Proactive Work,

%Predictive Work, % Corrective

Work)



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



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



• 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


• 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



(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



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



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



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



• 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



the earliest possible response to an

emergency)

Operational

Standards &

Specifications



• International, national,

provincial & City standards &

guidelines


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



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




• 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



• Historical &current asset

inspection & assessment results

including geotechnical

investigations

• Timing& other requirements

from other stakeholders

including external agencies,

area municipalities, utility

companies



including asset failures,

downtime, maintenance &

operations costs


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



Detailed Design

& Tender

Documents


Design Standards & Guidelines




• Current survey information


Construction Standards &

Guidelines

• City wide Drawing, Asset

Naming & Asset Tagging

Conventions

• Complete 30% Detailed Design & conduct

review

• Conduct Value Engineering Workshop


review


review


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



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



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:


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



Work Execution • Maintenance Work Plan &

Schedule


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



• 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



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


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



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



• 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)


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


operations

• System Integration



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



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



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,



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



• 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


Appendix B


Table B-1: City of Regina AM Responsibility Matrix (to be completed following implementation of the AM Governance Model)


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


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


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


Continuous Improvement

GHD | City of Regina – AM Adoption Project| Asset Management Framework |

GHD Inc.

11 Allstate Parkway, Suite 310

Markham Ontario L3R 9T8

T: 905 752 4300 F: 905 752 4301 E: [email protected]

© GHD Inc. 2013

This document is and shall remain the property of GHD Inc. The document may only be used for the purpose of assessing

our offer of services and for inclusion in documentation for the engagement of GHD Inc. Unauthorized use of this

document in any form whatsoever is prohibited.

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