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The role of Asset Management in the Public Sector - SAAMA

The role of Asset Managementin the Public SectorErnst SwanepoelSAAMA Council MemberWhat is thepurpose of Asset Management ?TOPICS Accountability for Asset Management Physical Asset Management : Strategic Business Process Model Asset Management Best Practices Business and Asset Life Cycles Life Cycle Asset Management Costs Best Practices: Asset Management Maintenance Management Who is accountable for the condition of the Asset ? What is our core service to our customers?Accountability for Asset Management Treasury systems requirements The effectiveness and appropriateness of systems and procedures used to manage state assets is vital Great emphasis should be placed on ensuring better accounting practices and procedures, to ensure that state assets are managed and utilized in the most effective way to achieve the required results as defined for each entity within the Pub

•Asset and work –enterprise-wide visibility and lifecycle management for your physical assets to decrease costs, increase asset availability and minimize downtime. •Material and Procurement –Leverages your corporate buying power by centralizing purchasing for …

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Transcription of The role of Asset Management in the Public Sector - SAAMA

1 The role of Asset Managementin the Public SectorErnst SwanepoelSAAMA Council MemberWhat is thepurpose of Asset Management ?TOPICS Accountability for Asset Management Physical Asset Management : Strategic Business Process Model Asset Management Best Practices Business and Asset Life Cycles Life Cycle Asset Management Costs Best Practices: Asset Management Maintenance Management Who is accountable for the condition of the Asset ? What is our core service to our customers?Accountability for Asset Management Treasury systems requirements The effectiveness and appropriateness of systems and procedures used to manage state assets is vital Great emphasis should be placed on ensuring better accounting practices and procedures, to ensure that state assets are managed and utilized in the most effective way to achieve the required results as defined for each entity within the Public Sector a)

2 Accountability & PFMA Treasury s systems requirements Good Asset Management is critical in any business environment and more so in the Public Sector as they are vital to providing a foundation for economic activity PFMAS ection 38 places the responsibility on the accounting officer for financial and risk Management of the entity as well as the effective and efficient use of the resources thereof. The section further specifically tasks the accounting officer with the Management , including the safeguarding and maintenanceof assets and the Management of )Accountability & PFMA Asset and work enterprise-wide visibility and lifecycle Management for your physical assets to decrease costs, increase Asset availability and minimize downtime.

3 Material and procurement Leverages your corporate buying power by centralizing purchasing for multiple locations and helps you manage and optimize spare parts inventory while minimizing carrying costs and providing inventory visibilityacross your entire organisationc)Accountability & PFMA Safety and Compliance Helps you comply with all regulatory issues in your industry while reducing non compliance penalties and improving Asset utilisationand uptime. Design Engineering Utility engineers can create accurate plans for new construction, including necessary equipment and budgets in a fraction of the timed)Accountability & PFMA Adhere to all applicable legislation Implement and maintain a compliance Management system for each construction and maintenanceproject Compliance with the requirements of the OHSACTand its Regulations Attract personalliability, penalty and criminal recorde)OHSAct & PFMAU ntil July2003 Liability for health and safety vested with the Asset owner, and.

4 Section 37 (2) agreement implemented to ensure that contractors accept joint responsibility which is project managed f)OHSAct & PFMA11 Identify Infrastructure(What do we have?)3 Supporting Systems(Do we have rightinformation?)34 Record Keeping(Do we have the rightdocumentation?)422 Resourcing & Skills(Who is responsibleand accountable?)5 Aligned Reporting(Does our reporting make business sense?)56 Business Architecture(Consolidate on LogisticsFor Life Cycle Management )68 System Architecture(Consolidate Systems, Strategies & Interfaces)87 PPSG Formulation(Policies, People, ProcessesStandards & Guidelines)79 Critical Systems & Processes(Head Office, Regional SupportStructures and Compliance)910 Different Asset Condition(Differentiation, PrioritisationStrategizing and Reporting)1011 Reliability & Modeling(Service Delivery StructuresLife Cycle Assessment)1112 Financial Optimisation(Service Delivery StructuresEnhanced to Estate Management )

5 12 ConfigurationDesignMaintenance& WorkflowMasterPlanningIMS, BPRI ntegrationAsset LifeOptimisation234456567889 Asset ConditionModelling10111112 Complete OrganisationalEAMEAS-14/03-11 BUSINESS PROCESS MODEL CONSIDER NON- Asset SOLUTIONS Failure Management Insurance Demand ManagementCUSTOMER EXPECTATIONS Level of Service CostLEGISLATIVEREQUIREMENTS Financial EnvironmentalSTRATEGIC PLANNING PROCESSSERVICE LEVEL REVIEW PROCESSASSET Management PROCESSCONSIDER Asset SOLUTIONS Maintain/ renew/ upgrade/ dispose of existing assets Create new assetsIMPLEMENT Asset Management SOLUTIONS trategic PlanningTactical PlanningOperational PlanningReference.

6 The Total Asset Management Process InternationalInfrastructure Management Manual, 2006-2012 EAS-14/03-12 Asset Management Best Practices ?Requirements of Property UsersAs defined by Business Planning Strategy Current property user requirements are delivered?Possible future property user requirements knownDemands on the future property baseCurrent property baseProperty Management strategies to close the GapsCurrentGapFutureGapFuture DemandPropertyGapUser NeedsPropertyResponseDemandSupplyEAS-14/ 03-13 Property Management Best Practices ?Business MissionOrganisationalStrategyDivisionalO bjectivesProjectPortfoliosExecutableProg rammesProjectsCONCEPTFEASIBILITYIMPLEMEN THANDOVERIDEADEVELOPP rojectsBusiness Life Cyclea.

7 Project Life CycleSCM CycleBusiness and Asset Life CyclesEAS-14/03-14 Issue TRBriefingSession EvaluateTechnicalFinancialScreeningAppro ve/RejectPN & BudgetRequirementsStart(Originate from AMU -PMO)(Business CaseURS)(Briefing)(Note theExistence of PPSG) (PM Governance)( Asset Management Unit)(AMU Leadership)(AMU and StrategicPMO)b)SCMCYCLE (Generic)Legend: AMU = Asset Management Unit PMO (Organisational Programme Management Office) PPSG = Policies, Procedures, Standards & GuidelinesEAS-14/03-15 ConditionRoutine work onlyMaintainMaintainRehabilitateRoutine work only100%SP SLA Critical ThresholdEOL1 Cost effort Time FrameXEOL2 Replacement Condition Serviceability ThresholdRoutine work onlyMaintain & Crisis RepairEOL3 XXEOL4 XRehabilitate( partial upgrade)Rehabilitate( Major upgrade)c)Maintenance Cycle (Generic)

8 ConditionRoutine work onlyMaintainCrisisManagementRehabilitate Routine work only100%SP SLA Critical ThresholdEOL1 Cost effort Time FrameXEOL2 Replacement Condition Serviceability ThresholdRoutine work onlyMaintain & Crisis RepairEOL3 XXEOL4 XRehabilitate( partial upgrade)Rehabilitate( Major upgrade)c)Maintenance Cycle (Generic)1. General Requirements(ISO 5500x)Master IntegratedAsset ManagementProgramme)2. Asset Management Policy (PPSG)3. Asset Management Strategy4. Asset Management Enablersand Project Performance5. Asset Management Plans(Implementation)6. Performance Assessment and improvement7.

9 Management ReviewPLANDOCHECKACT Asset Investment Policy Maintenance Management Policy Programme Prioritisation Policy Master (Investment) Plans Technology Plans Asset types and Life Cycles Programme Management PPSG Maintenance (Strategic & Operational) Routine Maintenance Fault Management Replacement Management Programme Upgrade Cycles Condition Monitoring (ON LINE) RCM (Reliability Centered) Audits (DYNAMIC) Compliance Evaluations Differentiation New technologies (Impacts) PMO streamlining (Technology) Organisational Alignment Business Plan Impact & Updates Values, Policies, Life Cycle Asset Management ISO 5500+ PRASA Business Vision Macro-economic Impact H/L Transformation Plan ISO 9000 Compliant IIMM supported BCI compliant RSR CompliantEAS-14/03-18 Project Governance and Structures Configuration and documentation Management of Change Training, awareness & competence Contingencies Management Production Systems Integrated Asset Management GIS and Spatial Drawing Offices Information Management Risk and Legal Life Cycle Planning Maintenance Policy Tools.

10 Facilities & Equipment PMO and Project SupportIMPLEMENT THE AMPINFORMATION FLOWS Information flows Information ManagementSERVICE DELIVERY ISSUES Defining core services Contract types/ delivery mechanisms Contract issuesTHE AM PLANPREPARE AM PLAN Purpose (ST, MT) Steps in preparing AM plan Plan structure Key StakeholdersDEVELOP LIFE CYCLE STRATEGIES Develop strategies for each stage of Asset lifeAMP REVIEW & AUDITC yclic audit of: AM Performance Technical content of AMP Compliance with legal requirements Internal/ external auditsASSET Management IMPROVEMENT PLAN Condition Assessments AM status reviews The improvement program Pilot studiesSERVICELEVELREVIEWR eference.