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Asset Management Framework document sample
Document Sample
Strategic Asset Management Framework
Strategic Intent Document
Strategic Intent Document
Background and Introduction
Strategic Asset Management
Strategic Asset Management focuses on the optimal alignment of assets with the requirements of an organisation, to enable
maximum return of value.
Organisations deploying principles of best-practice are rapidly embracing concepts such as whole life planning, life cycle costing,
planned and proactive maintenance and alignment of asset management strategies to the long term goals of the organisation.
In essence, the effective management of assets not only supports an organisation’s core business but can return significant value to
the organisation.
The effective management of assets therefore requires a robust strategic framework which establishes:
• Criteria and standards for the control and management of assets.
• Strategies and processes for asset expansion, improvement, management and disposal.
• Alignment with the long term goals of the organisation.
• Interrelationship with the organisation’s strategic planning process, including where possible multiple usage.
• An comprehensive performance management framework
ECU Strategic Asset Management Project
The Strategic Asset Management Framework (SAMF) shall provide a comprehensive foundation for the effective implementation of
asset management, with a clear focus on both the short term management of assets and the long term strategic use of assets. The
framework aims to support the realisation of the University’s vision and goals, ensuring that assets support the delivery of ECU’s core
business.
The effective deployment and utilisation of the Strategic Asset Management Framework represents a key factor in the ongoing
operation of Edith Cowan University. This document outlines our Strategic Asset Management Framework and aims to convey the
goals and principles upon which the University manages its planning, deployment and management of assets.
Strategic Intent Document
Overview – Strategic Asset Management Framework
The Strategic Asset Management Framework is designed to align with the strategic objectives of the University. This enables both
ongoing support of strategy together with greater return on investment.
The below diagram demonstrates how the SAMF Framework is driven by the University’s mission, with each element position within the
hierarchy to contribute to the success and sustainability of Edith Cowan University.
Mission
To further develop valued citizens for the benefit of Western Australia and beyond, through teaching and research
To further develop valued citizens for the benefit of Western Australia and beyond, through teaching and research
inspired by engagement and partnerships.
inspired by engagement and partnerships.
Strategic Priority 1 Strategic Priority 2 Strategic Priority 3 Strategic Priority 4
Providing a Supportive and
Providing a Supportive and
Engaging and Serving our
Engaging and Serving our Delivering Research Focus,
Delivering Research Focus, Building Organisational
Building Organisational
Stimulating Learning
Stimulating Learning
Communities
Communities Depth and Impact
Depth and Impact Stability
Stability
Environment
Environment
SAMF Vision
To provide quality infrastructure and services that supports the University’s strategic priorities
To provide quality infrastructure and services that supports the University’s strategic priorities
Guiding Principles
The Guiding Principles provide the foundation for an effective
The Guiding Principles provide the foundation for an effective
delivery of the Strategic Asset Management Plan
delivery of the Strategic Asset Management Plan
Control 1 Control 2
SAMF Planning Work Instructions
Performance
Performance Strategic Planning
Strategic Planning
Management KPI’s
Management KPI’s Process
Process
Processes
SAMP Input 1 SAMP Input 2 SAMP Input 3 SAMP Input 4 SAMP Input 5 Figure 1: Strategic
Staff // Stakeholders
Staff Stakeholders Systems
Systems Resources
Resources Services
Services Governance
Governance Asset Management
Fram ework
Strategic Intent Document
The Guiding Principles
The Guiding Principles serve as Edith Cowan University’s specific asset management and improvement strategic objectives. The following
were identified through discussion with key stakeholders in Phase One of this project:
1 To Support the ECU Mission and Strategic Goals
2 To Deliver Value for Money through the Assessment and Alignment of the Asset Infrastructure to Service Needs and Priorities
3 To Deliver and Communicate an Efficient, Consistent and Transparent Asset Management Process
4 To use Public and Commercial Benchmarks and Best Practices to Inform Decision Making
5 To Maximise Asset Utilisation
6 To Employ Life Cycle Cost Benefit Analyses
7 To Generate and Manage Appropriate Levels of Investment and Funding
8 To Manage the University Assets by Reducing the Negative Impacts upon the Environment
9 To Manage an Effective Asset Retirement Plan
10 To Employ Balanced Performance Measures
Hierarchy Document
Strategic Intent
Strategic Asset Plan – Implementation Framework
Edith Cowan University shall establish and maintain strategic asset Figure 2: Strategic
Vision and Aim
Asset Management Plan
management plans to achieve the asset management strategy. These Im plementation
plans are divided into three major streams (diagram to left) : Fram ework highlighting
three m ajor streams.
• CAPITAL EXPANSION AND IMPROVEMENT Guiding Principles
• MAINTENANCE MANAGEMENT
• ASSET RETIREMENT
5/10/20 year
ECU Strategic Asset Plan
Each plan will prioritise initiatives, be reviewed regularly and will be
supported to enable efficient and effective delivery. Planning, Prioritisation, Performance and Financial Management
The Plans will;
• Designate responsibility/authority for achieving asset management Capital Expansion and Maintenance Management
Asset Retirement Plan
objectives and targets, within context of the University organisation Improvement Plan Plan
design.
Consult with stakeholders
• Define the means and time-scale by which asset management objectives to determine capital
Determine Maintenance
Demand
Identify Assets for
retirement
requirements
and targets are to be achieved.
• Be driven by and maintain consistency with the Asset Management
Prioritise Maintenance
Guiding Principles and the University’s Strategic Vision;
Perform Feasibility
works against budget Seek approval to retire
Analysis and define
allocation Assets
Business Case
• Be consistent with other strategies within Edith Cowan University;
• Identify and clearly state the functions, performance and condition Prioritise projects and seek
Assess and update backlog
in response to budget Manage retirement process
requirements of assets, asset types or asset systems as appropriate. funding approval allocation
• Take into account risk assessments and identify those assets or asset
systems that are critical; Deliver maintenance
Account for retirement
Enter delivery phase and program and account for
account for capital revenue revenue
• Provide sufficient information and direction, including an action plan with
maintenance revenue
defined time-scales and responsibilities, to enable effective asset
management objectives, targets and plans to be produced; Monitor and review
Monitor and review Monitor and review
performance performance performance
• Consider the lifecycle of the assets, asset types or asset systems;
Compliance and Governance
Scope Intent Document
Strategic
Capital Expansion and Improvement Plan
Vision and Aim
The Capital Expansion and Improvement Planning process refers to the deployment Guiding Principles
Capital Expansion and
of new capital assets or the overhaul and/or significant change to capital assets. The 5/10/20 year
ECU Strategic Asset Plan
Improvement Plan
process addresses a range of key factors that influence both the initial decision to Planning, Prioritisation, Performance and Financial Management
Capital Expansion and Maintenance Management
Asset Retirement Plan
Improvement Plan Plan
execute a capital project together with the management of these projects. Drivers to Consult with stakeholders
to determine capital
requirements
Determine Maintenance
Demand
Identify Assets for
retirement
this type of activity may include long term service delivery requirements, student and Perform Feasibility
Analysis and define
Business Case
Prioritise Maintenance
works against budget
allocation
Seek approval to retire
Assets
staff trends, periodic refurbishment, life cycle costing and the impact on future Prioritise projects and seek
funding approval
Assess and update backlog
in response to budget
allocation
Manage retirement process
Consult with stakeholders
budgets, strategic plans and the risk of change to service delivery requirements. to determine capital
Deliver maintenance
Enter delivery phase and program and account for Account for retirement
account for capital revenue maintenance revenue revenue
Monitor and review
performance
Monitor and review
performance
Monitor and review
performance
requirements
Descriptions of boxes to left are listed below:
Compliance and Governance
Planning Managers to undertake regular departmental consultation, with Services and Faculties to
determine current and future capital requirements based on strategic needs, proposed demand and Perform Feasibility
current utilisation. Analysis and define
Business Case
Perform Feasibility Assessment on proposed expansion or improvement projects to build Business
Case that justifies need, proposed capital expenditure and impact upon strategic delivery.
Prioritise projects and seek
funding approval
Undertake comprehensive evaluation of proposed new assets to justify inclusion within the overall
Strategic Asset Capital Investment Plan.
Enter delivery phase and
account for capital revenue
Develop sufficient definition to establish a clear understanding of the project, a plan for its
implementation, and whether the project is ready to proceed into detailed design and documentation.
Enter into delivery management if approved.
Monitor and review
After commissioning has been completed, to undertake a review of the project’s readiness for service. performance
Once in service, to apply established KPI’s to efficiency and utilisation.
Strategic Intent Document
Background
Asset Maintenance Plan
Vision and Aim
Asset Maintenance aims is to ensure that assets continue to support the strategic Guiding Principles
objectives and service delivery requirements. Maintenance itself also ensures that 5/10/20 year
ECU Strategic Asset Plan
Maintenance Management
the capital investment in the asset is preserved, consistent with its age and market
Planning, Prioritisation, Performance and Financial Management
Capital Expansion and
Improvement Plan
Maintenance Management
Plan
Asset Retirement Plan
Plan
value. Planning should occur at the strategic level, as well as at the delivery level, Consult with stakeholders
to determine capital
requirements
Determine Maintenance
Demand
Identify Assets for
retirement
to ensure that the maintenance program supports the University’s strategic Perform Feasibility
Analysis and define
Business Case
Prioritise Maintenance
works against budget
allocation
Seek approval to retire
Assets
direction and service delivery model.
Assess and update backlog
Prioritise projects and seek in response to budget Manage retirement process
funding approval allocation
Deliver maintenance
Enter delivery phase and program and account for Account for retirement
revenue
Determine Maintenance
account for capital revenue maintenance revenue
Descriptions of boxes to left are listed below Monitor and review
performance
Monitor and review
performance
Compliance and Governance
Monitor and review
performance
Demand
Through setting asset condition standards in line with functional purpose, and monitoring against these
standards provides a justified maintenance demand throughout the asset portfolio. This maintenance
demand can then be costed and issued for funding approval. Prioritise Maintenance
works against budget
allocation
To prioritise the maintenance activities that require action in line with both the Strategic Maintenance
Plan and allocated Maintenance budget.
Assess and update backlog
in response to budget
To assess the current maintenance backlog and update if necessary depending upon budget allocation allocation
and service need and review in terms of effect upon service delivery.
Deliver maintenance
The process of entering into appropriate arrangements with both internal University maintenance staff program and account for
and outsourced maintenance service providers for the provision of maintenance services in maintenance revenue
accordance with prioritised and strategic need.
To monitor and review maintenance performance in accordance with the provisions of the Strategic
Maintenance Plan. This includes the review of Program Management, Service Provision and Monitor and review
Maintenance Outcomes. performance
Strategic Intent Document
Asset Retirement Plan
Vision and Aim
The fundamental aim of effective asset retirement is the redistribution of value to
Guiding Principles
5/10/20 year
ECU Strategic Asset Plan
support the development or management of other University assets or activities. Planning, Prioritisation, Performance and Financial Management
Asset Retirement Plan
Effective asset retirement focuses on ensuring that underperforming or surplus to Capital Expansion and
Improvement Plan
Maintenance Management
Plan
Asset Retirement Plan
Consult with stakeholders Determine Maintenance
requirements assets are clearly identified in a timely manner. Further, a range of
Identify Assets for
to determine capital Demand retirement
requirements
Perform Feasibility Prioritise Maintenance
works against budget Seek approval to retire
Analysis and define
Assets
alternatives are then considered with respect to their ongoing management and/or
Business Case allocation
Assess and update backlog
Prioritise projects and seek in response to budget Manage retirement process
funding approval allocation
disposal. Retirement of assets, in accordance with a clearly outlined plan, ensures the Enter delivery phase and
account for capital revenue
Deliver maintenance
program and account for
maintenance revenue
Account for retirement
revenue
removal of potential maintenance and financial inefficiencies whilst reinvestment may Monitor and review
performance
Monitor and review
performance
Compliance and Governance
Monitor and review
performance
Identify Assets for
in turn provide substantial benefit to the University, its customers and stakeholders. retirement
Descriptions of boxes to left are listed below:
To identify assets as surplus to known and expected service delivery requirements that are based upon Seek approval to retire
the criteria of demand, functionality, physical condition and financial performance . Assets
The process of authorising an asset to be retired based on the review of balanced performance
measures, financial implications and strategic requirements of the University
Manage retirement process
To define the preferred retirement program, determine timescales and confirmation of the desired
outcome.
Account for retirement
revenue
To determine the financial responsibilities of the retirement process and focus revenue within strategic
plans for enhanced service delivery
To monitor and review retirement performance in accordance with the provisions of the Strategic Monitor and review
Disposal Plan. This includes the review of Program Management, Service Provision and the performance
performance review of external contractors.
Strategic Intent Document
Summary and Tools
Summary Strategic Asset Management Framework
• The Strategic Asset Management Framework provides a Documents & Tools
comprehensive foundation for the effective implementation of
asset management activity, • Strategic Asset Management Framework
• Clear focus on both the short term management of assets and • Processes:
the long term strategic use of assets.
• Capital Expansion and Improvement
• The Framework aims to support the realisation of the
University’s vision and goals, ensuring that assets effectively • Maintenance
support the delivery of our core business.
• Retirements
• A range of processes, policies and templates have been
• Templates:
developed to support the effective implementation of the
Framework (see right). • Long-term Plan (approx. 20 years)
• These tools provide a clear outline as to how the Framework is • Mid-term Plan ( approx. 10 years)
designed to operate, whereby the intention is comprehensive
planning leads to more effective management processes. • Short-term Plan ( approx. 5 years)
• Any questions or feedback with respect to this document or the • Business Case
Strategic Asset Management Framework, please contact the • Feasibility Assessment
following individuals.
• Governance
The Strategic Asset Management Framework
Peter Vincent (x2303) • Governance Matrix
Capital Expansion and Improvement • Organisation Alignment
Ron Hewitt (x2275)
• Financial Delegations
Asset Maintenance
• Performance Reports: KPI Dashboard
Frank Collins (x2901)
Retirement Management
Cameron Burnett (x2398)
