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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)