ARCADIS OPERATE AND MAINTAIN SOLUTIONS Unlocking hidden value

CONTENTS

4. Unlocking hidden value

7. About Arcadis

9. Operate and maintain

11. Managing assets

13. Key trends influencing operations and maintenance

16. The pillars of successful asset management

20. Taking on the challenges ahead

22. How we deliver

32. Where we are in the world

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I-20 East Collector Distributor Lane, Atlanta, Georgia, US

For asset-intensive organizations, effectively operating and maintaining assets is becoming more important than ever before. The operate and maintain phase is often the costliest part of total lifecycle expenditure on for example: rail, road, civil and hydraulic structures, water supply, waste water treatment plants, sewers and buildings. Furthermore, external pressures are driving the need for a greater balance of asset costs, risks and performance. While society demands higher service levels and more sustainable solutions, laws and regulations are becoming more stringent and now require a high level of operational and financial transparency. In addition, climate change and security threats require assets to be increasingly resilient. All of these factors pose a key question for asset owners: How can we find an optimized balance between costs, risks and performance?

For many asset owners, the answer lies in integrated and readily implementable solutions. Identifying those solutions requires trusted and knowledgeable partners who can blend strategic skills with a deep technical understanding of assets. This combination of skills helps to ensure asset management plays a vital role in operational environments.

At Arcadis, we work with clients every day to develop solutions that enable value creation. Not only do we help our clients to increase efficiency of operations and optimize maintenance, we also employ asset management to fundamentally improve the quality of the decisions made toward the performance of assets, which in turn reduces down time and increases cost efficiency.

Our experts in the operate and maintain domain work for public and private asset owners and asset managers across the globe. Also they directly and indirectly support service providers in their efforts to help asset managers achieve their goals. The expert network we have created is well-connected and constantly sharing knowledge and new developments on various geographies, market sectors, processes and technologies. As a result, we bring global best-in-class knowledge and examples of innovation to all of our clients, and are well-equipped to support them in unlocking the hidden value of their assets.

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UNLOCKINGHIDDEN VALUE

Don Hardy Global Solution Leader

Operate and Maintain

ABOUTARCADISArcadis provides consultancy, design, engineering and management services in infrastructure, water, environment and buildings. Established in the Netherlands in 1888, Arcadis now operates with around 27,000 staff in 42 countries worldwide.

At Arcadis, we provide services across the entire asset spectrum, from strategic advice, masterplanning, design and implementation, to operational services in maintenance and operations. We offer our clients solutions that are whole-life focused, viewed within the context of their business needs. Challenges faced by our clients are rarely met with conventional professional design and consultancy services alone. We deliver real results through innovative application of services that are new to the industry, combined with traditional skills and an understanding of specific client needs in their local and wider context.

Arcadis has a substantial worldwide footprint. Our global network enables us to bring our knowledge and experience of projects worldwide

and apply that expertise to localneeds. Our mission is to improve the quality of life worldwide by creating assets of distinction and sustainable solutions that enhance the built environment. Sustainability is central to everything we do, from our work with clients to the organization of our company and our approach to social responsibility.

We work toward a sustainable future by strengthening our people and culture, embracing growth and innovation, and making performance and client focus part of our DNA.

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Paddington Station, London, UK

OPERATEAND MAINTAIN

To maximize benefits, we work with our clients to focus on existing challenges, as well as those that lie ahead. In particular, we help to identify opportunities to both optimize capital (renewal) and operational (maintenance and operate) expenditure. Our goal is to find the right balance between cost, risk and performance in the operational phase.

Time and again, we’ve seen that using an asset management approach in optimizing the operational phase helps organizations exceed expectations and deliver results. Applying the principles of the international standard on Asset Management, ISO 55000, supports organizations

in optimizing and continuously improving their Asset Management Quality Management system, creating tangible value for the organization.

In parallel to offering services that improve performance across the operation and maintenance of existing assets, we take the insights and knowledge gained from our work in operating and maintaining assets and integrate them into the planning, design, engineering and construction of new assets. The application of this expertise, as well as the utilization of accurate and reliable data gathered during the operational phase, supports innovation and insights into the creation of new assets.

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The operational phase of an asset makes up the longest period of its lifespan by far. As a result, improving the operation and maintenance of an existing asset has the potential to benefit an organization in the short term and profoundly improve its performance over time. Improving operations and maintenance requires the alignment of all activities needed to operate and maintain an asset, like securing the organization objectives of quality of service, reliability, availability, maintainability, safety, sustainability and compliance.

Operate Services and

Maintain Services

Plan RedefineCreate Operate

COST RATIO PER LIFE CYCLE PHASE

Disclaimer: Based on Arcadis research. Ratio can differ depending on asset type, expected asset life time and asset ownership (public / private)

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MANAGINGASSETS

Over the years, maintenance management evolved into a more functional practice, although it was still focused on the asset. Classic maintenance management approaches like Reliability Centered Maintenance (RCM) were developed during this time.

Around 1989, the more business-centric field of asset management was first introduced. This approach assumed the asset’s performance and risk were aligned and interlinked with business strategy, plan and processes throughout every phase. In an effort to balance cost, risks and performance, it aimed to achieve business objectives through a view of total expenditure (Totex), a combination of capital and operational expenditure.

Today, we are in the midst of the latest revolution: data-centric. This approach encompasses a fact-driven asset management decision process based on Big Data and advanced analytic techniques. It helps organizations add a higher level of predictability, consistency and transparency to managing assets during their operational life. It makes asset managers more effective and efficient in optimizing the value of operations and in turn, optimizes the business and its strategy throughout the whole asset life cycle.

Over the past few decades, knowledge and capabilities around optimized asset management have developed rapidly. Before the field of asset management was professionalized, organizations were managing their assets through maintenance management. This approach originated as asset-centric, focusing first on the asset itself and then keeping it operational to its maximum extent.

Data oriented

Business oriented

Functionoriented

Objectoriented

Asset centric (1.0)

• Value and risk led approach to optimize the spend to achieve the Asset Management Strategy

Data centric (3.0)

• Focusses on data-driven decision- making by the use of (quantitative) advanced data models or analytics

• Business change focus on operating models, supply chain arrangements, process, information management and people focused transformation• Alignment of Asset Management with ISO 55000 quality management requirements

Business / ISO 55000 centric (2.0)

KEY TRENDS INFLUENCING OPERATIONS AND MAINTENANCE

FINANCIAL CONSTRAINTS

The economic crisis at the beginning of the 21st century forced governments and companies around the world to postpone or re-evaluate their investments and market positions, and consequently cut their costs.

Although business is picking up again, cost efficiency is still topping most agendas, and staying competitive continues to equate to keeping prices low. Resource and funding constraints are further driving the need for cost efficiency across production and the supply chain.

In some sectors, changing regulation is driving organizations to benchmark costs and performance. Many organizations are reducing costs as part of their license to operate or facing budget reductions from regulatory authorities.

AGING ASSETS

In some regions of the world, civil structures and other infrastructure and water assets are

exposed to considerable risk due to their age. A lot of these assets were built around the same time following the Second World War and have suffered both the end of their expected technical life span and a decrease in government investment. Because of changing regulatory requirements, as well as increased usage and social dependency, many of these assets have to perform far beyond the limitations of their original design.

In other regions, we see rapid population growth and high migration levels, resulting in considerable stress on existing water, infrastructure and building assets. The owners of these assets increasingly are required to improve customer experience, while renewing aging networks. Because of external pressures like depressed oil prices or restricted access to other natural resources, greater focus has been placed on extending the value of existing assets rather than rebuilding them.

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Sydney Harbour Bridge, Australia

During operations, managing and operating an asset poses many challenges. At Arcadis, we see the following as the most critical.

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DIGITALIZATION

Information Technology (IT) and automation have taken on vital roles in the management of assets. Equally important, IT has become part of every organization’s operational core. Collecting and understanding asset data, modeling its behavior, and enabling predictive management requires a data-driven process and further digitalization. The increasing speed of digitization can also cause uncertainty, as organizations grapple with how to stay flexible for future technology, handle changes and keep up with cyber security demands. All of these issues have an impact on the strategy, organization and management of key processes like information management.

AGING WORKFORCE

People who helped to build and operate asset-intensive organizations will soon leave the workforce, and recently trained workers are more likely to move around. As a result, many organizations are facing the impending loss of in-house experience and knowledge of operations and asset maintenance. For many organizations, the impact of an aging workforce poses questions about how current operations, increasing complexity and future strategy can be interwoven into a future-proofed business framework.

STAKEHOLDER DEMANDS

People around the world are more connected to each other and to vast amounts of information than ever before. The resulting increased demand on activities, services and products is straining current public and private assets, built and natural. In the private sector, competitive advantage is vital for survival, and in the public sector, public scrutiny is on the rise. Pollution penalties, physical security, human health concerns, extreme weather, and cyber-security: each increases risks for the owners and managers of assets. Knowing how to mitigate these risks while delivering reliable and resilient assets is vital to both protecting organizations from unexpected costs and delivering the best possible outcomes.

All of the above challenges demonstrate that the management of assets is becoming more and more complex. What can organizations do to face this?

Haga Hospital, The Hague, The Netherlands

THE PILLARS OF SUCCESSFUL ASSET MANAGEMENTTackling the many issues facing an organization can seem challenging; but the fact of the matter is that organizations now have an unprecedented opportunity to reap the many benefits offered by implementing effective and robust asset management into their operations and maintenance. Preparing themselves for the challenges ahead requires reducing costs and improving performance over the lifecycle of their assets. In order to achieve these objectives, well-performing organizations have put in place some critical and proven measures of success.

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VALUE-BASED DECISION-MAKING

Creating value starts by having a clear definition of the overall asset management strategy and the associated value drivers linked to the organization strategy. Based on current over- and under-performance, as well as desired performance, the risks and opportunities for the business are the key drivers to define mitigating measures (projects) to create business value. Ultimately, understanding the relationship between cost, risk and performance and

optimizing the project portfolio accordingly is what creates business value.

Certain constraints, often financial or resource-related, drive decisions around capital and operational expenditure (Totex). Implementing a holistic portfolio optimization process that enables balancing cost, risk and performance gives real insight to the added value of every coin spent. Throughout this process, decisions should always be challenged on the value they add.

AN IMPROVED OPERATING MODEL

Galvanizing people around a vision and providing them with skills and clarity around roles and responsibilities are the keys to operating successfully. Typically, three roles are necessary - Asset Owner, Asset Manager and Service Provider - and each comes with distinct responsibilities and capabilities. Separating out these functions creates more efficient processes in an organization.

CREATING A CLEAR PROCESS FRAMEWORK

Today’s effective asset management frameworks create a “line of sight” and link the organizational objectives to the activities carried out in the field. When a gap exists between the strategy and the day-to-day priorities of staff working to keep services operating efficiently, organizations miss opportunities to improve long-term outcomes. Bringing operations and maintenance experience into design and engineering creates a total cost-of-ownership perspective.

Paddington Station, London, UK

IMPROVED ASSET INFORMATION MANAGEMENT

Data is the lifeblood of an asset manager. Collecting, managing and using growing amounts of data is a key factor for successful asset management. A big challenge is to improve the quality of existing data, and identifying and gathering additional relevant data. Organizations that invest in Asset Information Management (AIM) across their assets enable a lean execution of asset management processes. Once the data is collected, validated and made accessible, asset analytics can be applied to unlock potential value.

COST AND RISK AWARE CULTURE

Organizing people around a strong cost and risk culture will mobilize the organization towards continuous improvement. A strong technical foundation is important and has to stay part of the organization’s core, but it should be framed in a cost and risk aware setting. For many organizations, this approach represents a big shift in thinking. The asset management way of working has to be supported by all staff involved, and asset management-based operations have to become part of an organization’s DNA. Change management is crucial to making this process a success.

INTEGRATION OF BEST INDUSTRY PRACTICES AND STANDARDS

Asset management frameworks are generally built on established systems, standards and mandates like ISO 55000. These frameworks help to integrate a holistic approach to operations and managing assets, unlocking their relevance in the organization by redefining their role and optimizing their processes. As a result, organizations are empowered to make choices that affect their portfolio, risk management, contracting, outsourcing and training strategy. After realigning their processes according to these widely applied standards, organizations identify the possibility of benchmarking their ventures on various aspects. This important step gives organizations insight into potential new fields of optimization and allows them to enter a cycle of continuous improvement.

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Newtown Creek Digesters, New York, USA

TAKING ON THE CHALLENGES AHEAD

International projects in our operate-and-maintain field of expertise form a foundation that enables us to truly understand our clients’ challenges. Asset Owners, Asset Managers and Service Providers face numerous obstacles. Helping them by providing an integrated, differentiating and meaningful solution is what sets Arcadis apart from our competitors.

When meeting people in the field, we look to find common ground. We work towards practical solutions and oversee the strategic, operational and technical aspects of the businesses we help. Arcadis is uniquely positioned in the field of natural and built assets to provide capabilities

in consultancy, technical advisory and operational management throughout the asset lifecycle. This expertise relies in part on our experience in operational management services through asset performance level rewarding contracts, which means we accept certain financial risks linked with asset parameters like reliability and availability. Consultants in our company understand how asset-intensive businesses work, and our experts and advisors provide the critical depth of asset expertise to develop pragmatic and realistic solutions.

Across operations, working together with suppliers and end-clients in a network of highly integrated processes is essential.

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WORLDWIDE KNOWLEDGE SOURCING

Around the world, we’ve worked with clients to deliver quantifiable results. Our clients benefit from these relationships because they enable us to benchmark and share best practice across the industry.

Across our global design and consultancy, we often reach out to our colleagues in different countries to adopt concepts and ideas relevant to our clients. At Arcadis, our culture of knowledge-sharing and innovation ensures we are always aware of where in business best practice sits.

We work across the entire lifecycle of built and natural assets, from design through operations to disposal all over the world. This perspective affords us the ability to understand how the decisions taken at various points affect outcomes at other points in the cycle. For our clients, we bring strategic, tactical and practical approaches to their assets, ensuring that they improve their lines of sight.

INSIGHT THROUGH OUTSOURCING CONTRACTS

We have attained many insights by taking on performance-based contracts in a variety of fields. As a result, we are a design and consultancy partner that has taken hands-on measures toward guaranteeing the availability of assets. This experience doesn’t just improve our understanding towards asset owners; it also improves our understanding of the companies providing services. Service providers and contractors often encounter a high-end tactical framework that isn’t applicable into their own operations. Bridging that gap and optimizing their service means we are supporting sustainable improvements in the way businesses are run.

INVESTING IN PEOPLE, SKILLS AND TOOLS

Investing in data skills and tools that give our clients an edge is important. Across every project we do, we leverage data collection to enable our clients’ asset management. We help our clients understand the condition and performance of their existing assets and produce analytics that benefit their strategies, improve availability and drive optimization. We don’t just urge our clients to employ metrics to ensure constant improvement; we also do it ourselves. Because we work together and collaborate in diverse and dynamic ways, we are driven to continuously improve existing services and processes.

Analyzing these processes helps to optimize an organization’s activities. Taking the information of third parties into account opens the route to supply chain optimization. This step improves the predictability of input and output availability and makes it possible to loop information back into the supply chain. It even opens the possibility to manage the stock from suppliers that the organization needs, for instance to make repairs. With the right technical insights and knowledge of operations, the supply chain of an organization’s asset management process can be automated to reduce costs and downtime in a sophisticated way.

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1 Consultancy

Our seasoned consultants

support our clients by helping

them improve operational

models, processes, information

management and capabilities

and culture. Our goal is to

become the partner that our

clients trust to improve their

businesses.

2 Technical Advice

Our technical capabilities lie in

our longstanding experience

in the broadest range of asset

types. Our expertise ranges

from natural to built assets in

water, infrastructure, buildings

and environment.

3 Operational Management

We offer operational asset

management as a service

provider or in partnership with

contractors. As part of

operational management, we

act as managing agent as well.

HOW WE DELIVERWhat sets Arcadis apart is the complete and distinctive range of services we can offer organizations, from business consultancy to operational management services, technical advisory and even executing performance-based contracts. At the core of everything we do are the needs and wishes of our public and private clients and the consultancy, technical and engineering skills we have cultivated for decades. The organizations we work for experience this expertise through the strong relationships we build with them, and our highly tailored blend of consulting, technical advisory and operational management expertise.

Atlanta, USA

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OUR CLIENT’S CHALLENGEAsset Rail, a subsidiary rail contractor of Arcadis is providing performance based maintenance for 1400 km of the Dutch railway network. Performance-based maintenance contracts rely on the contractor to make the right decisions in terms of costs, risks and performance in maintenance. Accurate information on assets is essential for Asset Rail to support its decision making processes. Asset Rail recognized their asset monitoring systems generated huge amounts of data that could hold valuable additional information but was unable to sift tangible information from it.

OUR APPROACHCombining our deep global knowledge of the rail sector and its assets with our extensive experience in quantitative data analysis and risk management to support decision making processes, we were able to provide Asset Rail with tangible information to optimize their asset management strategy. Connecting the different sets of data using quantitative modelling provided insight in the underlying relationships and dependencies of the assets, including their use and performance. This information made it possible to predict what assets would require maintenance first and prioritize maintenance activities to assets most at risk.

OUTCOMES FOR OUR CLIENT The insights we provided Asset Rail with helped them determine the most suitable Asset Management strategy by generating optimal insight from massive amounts of data. It meant a transition from relying on technical case experts to working in a solely data driven environment during the decision making process, resulting in more reliable and effective decisions. This in turn resulted in significant annual cost savings and increased performance of their assets.

OUR CLIENT’S CHALLENGEThis client supplies the residents of Columbus with water, wastewater, storm water and power services. Their asset base ranges from water supply and treatment plants, sewers to power related infrastructure. They wanted to develop an asset management program to accurately forecast required future capital and operational expenditures of their assets, moving from corrective to preventive maintenance in order to reduce costs, improve asset performance and thereby asset availability.

OUR APPROACHAs a key member of the consulting team supporting DPU’s ongoing asset management program. Our team performed several tasks for DPU’s Asset Management Office (AMO). to streamline operations and increase performance. These tasks included enhancing DPU’s computerized maintenance management system (CMMS), development of a risk-based capital improvement program, and development of a performance management program. We developed processes, procedures and enhancements to fully leverage DPU’s CMMS. Arcadis developed condition and risk methodologies including standard procedures to determine asset condition, criticality and risk of both vertical and linear assets.

Once the risk evaluation process was completed we implemented business case evaluation tools to support capital planning. Finally, Arcadis developed and implemented a performance management program to identify key level of service measures to help drive the asset management program and track the programs performance.

OUTCOMES FOR OUR CLIENT Setting up the AMO and asset management program resulted in significant organization and culture change across DPU’s lines of business. Business cases are now being developed and analyzed for most major projects, with multi million dollar savings identified through these efforts. In addition, DPU maintenance staff are improving utilization and reporting through their software application, providing more effective analysis tools for the AMO. Service levels are being effectively tracked and reported to senior management and other stakeholders. Development of operational performance metrics are underway.

CASE STUDY

OPTIMIZING RAIL INFRASTRUCTURE MAINTENANCE WITH DATA ANALYTICS Project: Predictive maintenance using data analyticsClient: Asset Rail

CASE STUDY

IMPROVING ASSET MANAGEMENT PERFORMANCE FOR CITY OF COLUMBUS DEPARTMENT OF PUBLIC UTILITIES Project: Asset Management Program DevelopmentClient: City of Columbus Department of Public Utilities (DPU)

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OUR CLIENT’S CHALLENGESouthern Water Services delivers water and waste water services for Kent, Sussex, Hampshire and the Isle of Wight in the UK, providing water to one million properties and taking wastewater from 1,7 million households. Their assets consist of supply plants, treatment plants and pipe networks.To improve efficiency of their asset maintenance plan Southern Water wanted to have a better insight in their assets’ condition and identify which assets were at risk and required priority maintenance.

OUR APPROACHTo help Southern Water better understand their assets we verified their top down business plan against a bottom up assessment of site and asset criticality, with intervention options to reduce risk and find efficiencies.We performed a comprehensive assessment of failure, mode, effects and criticality (FMECA) across Southern Water’s asset base; analyzing over 250 sites to identify those with the highest proportion of critical assets which were then inspected by an expert team of Arcadis and Southern Water engineers working in collaboration. Arcadis led the project, combining extensive asset management capability with a Business Advisory driven focus on asset capital investment profiles.

From a sample of high criticality assets across each asset class, we were able to apply data analytics to map out risks of failure across the entire class; gaining a clear understanding of the cost implications for varying degrees of risk and develop a revised approach to maintaining them, ensuring to deliver the outcomes required by the company.

OUTCOMES FOR OUR CLIENT We found that 26% of originally budgeted costs attributed to the first 20 sites inspected could be re-allocated, providing tangible bottom line savings to the client. We helped Southern Water establish capital maintenance savings against their original business plan, in addition to building a clearer picture of asset risk. This will enable them to better understand the impact of investment on the risk profile of assets; allowing them to target investment on high priority assets with highest criticality.

OUR CLIENT’S CHALLENGEHeathrow Airport is one of the busiest airports in the world, handling more than 200.000 passengers a day. It consists of rail, subway, bus, highway and aviation operating business with over 100.000 daily workers. The airport’s aging $20 billion asset base is operating at 99% capacity at the same time as competitive pressures are demanding both an unprecedented reduction in costs and an improvement in passenger experience.In response to these needs and demands the Asset Management Program was set up to maximize the $2 billion annual expenditures by changing the way the organization shared information, collaborated and made decisions.

OUR APPROACHWe were the lead partner for this Asset Management Program, developing and running the program for 3 years. In this role we drove the creation of a benefits led $4 billion Strategic Asset Management Plan which incorporated portfolio and program management tools and methods. Aligning the whole business was a key element and required a program approach with clear business to asset objectives and metrics combined with a “mind-set” change approach using innovative communications, engagement and training. A redesign of the business processes and governance to embed a transparent line of sight and change

the nature of the questions being asked throughout the organization and the supply chains was also performed.We initiated ISO 55000 accreditation and completed an independent assessment of capability. An investment in new IT capability was required for on-going improvements in decision making.The technical standards function was redesigned to act as the guardian of the asset strategy with the creation of new roles and skills requirements. Delivering the change with tangibleoutcomes, using a practical approach andadopting proven techniques to deliver:maintenance, investment, performance andrisk improvements, in a planned successionof quick wins together with Heathrow’s cross functional and department teams.

OUTCOMES FOR OUR CLIENT With our approach we helped Heathrow’s asset management organization build the knowledge and capability to independent and self-sustaining. The new Strategic Asset Management Plan is resulting in combined Capex and Opex (Totex) savings of over $100 million. We were recognized as Finalist in Management Consultancies Association 2015 Awards for Change in Private Sector.

CASE STUDY

DATA LED ASSET RISK ASSESSMENT REDUCES RISKS AND IMPROVES EFFICIENCY Project: Asset failure mode effects and criticality analysissClient: Southern Water Services

CASE STUDY

DEVELOPMENT OF HEATHROW’S ASSET MANAGEMENT CAPABILITY Project: Asset Management ProgramClient: Heathrow Airport

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OUR CLIENT’S CHALLENGERijkswaterstaat is responsible for the design, construction, management and maintenance of the national road network, waterway network and water systems in The Netherlands. The closed off inland bay IJsselmeer is part our client’s work area. The IJsselmeer counts numerous floodgates, locks and bridges. Ensuring the availability, operations and safety of these assets is of great importance to large parts of The Netherlands. With less public funds available Rijkswaterstaat was looking for new innovative risk controlled ways to organize its maintenance without compromising on asset performance.

OUR APPROACHWe recognized our client’s preference to focus more on their strategic asset management and to outsource the service providing role based on a different risks and responsibilities model.Together with the client we developed this model to organize its maintenance on a risk-controlled basis, introducing a Reliability Centered Maintenance-management contract, based on our analytic capabilities and our construction and asset expertise. We teamed up with Croonwolter&dros (MEP contractor) in a joint venture called Sherpa to offer multidisciplinary and integrated services. As service provider, Sherpa is responsible for the maintenance

and upgrading of floodgates, locks and bridges around the IJsselmeer. During the contract period the electrical and mechanical installations will be refurbished and civil engineering damages will be repaired. The modernization of the control and operation centers, the overhaul of the swing bridges, locks, floodgates, the renewal of the buffers and sluices are also part of Sherpa’s program.

OUTCOMES FOR OUR CLIENT Through the introduction of performance based maintenance we have been able to deliver a high return on investment to our client. Moreover end-user satisfaction has risen with 80%, the number of delays has reduced with 25% and overall asset availability has increased with 20%. The client recognizes the strength of Reliability Centered Maintenance and is openly advocating the Sherpa approach.

OUR CLIENT’S CHALLENGETo achieve world-class performance, refineries aspire to achieve maintenance costs below 1.4% of the plant replacement value and mechanical availability above 96.7%, with a productivity level of 60 - 65%. However, in most facilities, productivity levels on maintenance activities reach only 30 - 40%. This means maintenance crews typically spend only 17 hours in a 40-hour working week actually performing maintenance, so-called ‘time on tools’. Our client was looking for ways to maximize its maintenance crew’s productivity while realizing Opex savings.

OUR APPROACHWe performed a performance benchmarking study and Opex review to identify the principal opportunities for improvement and Opex savings. For this benchmark we used our unique Arcadis ‘Time on Tools’ process to measure productivity, a proprietary process which enables us to benchmark maintenance productivity against approximately fifty refineries and petrochemical complexes worldwide. We measured productivity across our client’s refineries globally, highlighting best and worst practice. With these insights we provided our client with recommendations to improve productivity: removing waste activities and improving wrench time, introducing standard methodologies for measuring in-site productivity and ensuring a methodology

within contracts that allows for ‘monetizing’ the gains.

OUTCOMES FOR OUR CLIENT Implementing standard methodologies to measure productivity provides our client with a baseline for developing a plan to improve productivity and with the ability to track progress against improvement targets. By doing so our client has been able to realize a significant increase in ‘time on tools’. Another positive outcome of accurate measures is that it allowed our client to make it easier to incentivize contractors to improve their productivity. Further benefits include thereduction in Health, Safety, Security and Environment exposure and promotingfirst time right behavior.

CASE STUDY

PERFORMANCE BASED MAINTENANCE CONTRACTS TO ENSURE AVAILABILITY, OPERATIONS AND SAFETY OF FLOODGATES, LOCKS AND BRIDGES AROUND THE IJSSELMEER, THE NETHERLANDS Project: Service provider - SHERPAClient: Rijkswaterstaat, The Netherlands

CASE STUDY

MAXIMIZING MAINTENANCE-CREW PRODUCTIVITY THROUGHOUT CLIENT’S GLOBAL DOWNSTREAM BUSINESS Project: Maintenance Productivity EnhancementClient: Confidential international oil company

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OUR CLIENT’S CHALLENGEIn recent years, rapid population growth within Abu Dhabi resulted in a need to expand the Emirate’s utility infrastructure. This included new sewer systems, wastewater treatment and treated wastewater systems for irrigation. The operation and maintenance of these systems was outsourced by ADSSC and, given the size of the Emirate, many different operational companies were appointed to help manage them. To ensure these assets were managed in a consistent manner, and that they delivered a sustainable level of performance (both in terms of environment and cost), there was a need to develop a best-in-class Operations and Maintenance (O&M) strategy.

OUR APPROACHADSSC appointed Arcadis to develop an O&M strategy on their behalf, to cover the entire Emirate of Abu Dhabi. The scope of consultancy services included O&M, asset management, capital maintenance and other organizational and institutional aspects. We scoped, designed and procured a new suite of performance based contracts to replace the previous remeasurable contract types. Performance based contracts are designed to help public sector clients reap the benefits of private sector innovation and best practice with higher rewards being offered for increased performance.

Our principal responsibilities included: management of data capture; identification of technical objectives; development of performance regimes; incentivization; mechanisms to drive the private sector to deliver the required services and performance improvements.

OUTCOMES FOR OUR CLIENT This project provided ADSSC with a procurement strategy and performance based management contracts that have helped to drive significant financial and environmental benefits as part of their capital improvement program. This was one of the first performance-based O&M strategies developed in the Middle East region and has set a benchmark around how other utility companies are now approaching this challenge.

CASE STUDY

DEVELOPMENT OF A SUSTAINABLE OPERATE AND MAINTAIN STRATEGY Project: Four performance based management contractsClient: Abu Dhabi Sewerage Services Company (ADSSC)

OUR CLIENT’S CHALLENGEThe Dutch railway network is one of the busiest and most complex in the world. The rail network needs to be constantly available to accommodate a large number of passengers. Due to the complexity of the Dutch rail network, failures in the network and the resulting disruptions in the train service have far reaching consequences. Therefore it is crucial for Asset Owner ProRail to keep the number of disturbances and the recovery time after a failure to a minimum. However the network’s performance was decreasing and costs were rising.

OUR APPROACHWe teamed up with the renowned contractor Dura Vermeer and set up a joint venture called Asset Rail, a full service provider in rail infrastructure asset management fully centered around performance based maintenance. Through optimally combining contractor knowledge, risk management experience and quantitative analysis in a streamlined process we were able to implement asset management strategies by which we could respond quicker to technical failures and prevent failures from occurring.

OUTCOMES FOR OUR CLIENT Our performance based maintenance approach resulted in a 50% reduction in network disturbances, a significant reduction of the recovery time (up to 50%) after a disturbance and an extension of the remaining assets’ life span all whilst reducing maintenance costs significantly. This culminated in increased availability and safety of the rail network. ProRail used the positive experiences with Asset Rail as an example to change the service provider landscape for all other maintenance contracts. The streamlined process we implemented met the demands of ProRail’s ambition to be the best European Rail infrastructure manager.

CASE STUDY

PERFORMANCE BASED MAINTENANCE ADDS VALUE TO RAILWAY NETWORKS Project: Full service provider in rail infrastructure asset managementClient: ProRail

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OUR CLIENT’S CHALLENGEThe metropolitan area of Atlanta in the United States has seen an increase in population of more than 80% during the past two decades. The region’s urban sprawl fuels congestion along all roadway facilities, and with limited alternatives in a mostly radial network of arterials and interstates, applies further stress to commuter corridors. To improve traffic operations on these commuter corridors the Georgia Department of Transportation (GDOT) started the Regional Traffic Operations Program (RTOP), a program aimed to operate and maintain an inventory of more than 1400 traffic signals across 30 regionally significant corridors and 32 managing agencies in Atlanta. Arcadis is under contract to operate and maintain over 650 of these intersections.

OUR APPROACHArcadis acts as the Program Manager of RTOP, effectively managing four consultants, four contractors, two system/software providers, and 11 local government agency stakeholders in multiple departments, including public works and information technology, to deliver improved operational efficiencies. Milestones include: center-to-center communication of traffic signals, traffic signal communications from the GDOT Traffic Management Center, video sharing architecture across all RTOP agencies, and implementation of an Ethernet-based shared

communication network across multiple stakeholder networks. Using our deep understanding of infrastructural assets we perform routine and preventive maintenance to meet the required program thresholds for operation uptime for the various assets. We also provide construction engineering and inspection services on all installation and maintenance conducted by our contractor partners, and help review and accept work conducted by other entities and contractors on our project corridors.

OUTCOMES FOR OUR CLIENT The RTOP architecture allows for a unique regional system to communicate with the traffic control and monitoring assets in any of the participating agencies through a single system housed at the GDOT Transport Management Center. The implementation of RTOP has resulted in improved traffic operations not just on RTOP corridors. There is now more bandwidth available to improve the remaining, non-RTOP, intersections and routes. The program has received praise from GDOT executives and industry organizations such as ITS America Spotlight Award, ITE, and ITS Georgia.

OUR CLIENT’S CHALLENGEThe province of North-Holland is one of thebusiest areas of The Netherlands. The countries capital, Amsterdam, and largest airport are located here. Accessibility is of great importance. Ensuring the safety and availability of traffic tunnels is crucial for smooth traffic flow in the region. Managing these tunnels has become increasingly complex due to new European and Dutch legislation in maintenance and safety management. Since the province of North-Holland only manages a limited number of tunnels it cannot leverage experience from other tunnel projects. Therefore they looked for a partner to outsource its tunnel maintenance activities to. By doing so the province could free up resources to use in its core activities.

OUR APPROACHArcadis won the 10 year contract to act as delegated asset manager for three tunnels in the province of North-Holland. As managing agent we are responsible for managing the tactical activities. Our specialists determine the maintenance frequency of the assets, perform reliability centered maintenance, safety management, traffic control, staff training and arrange working permits for subcontractors. Through a combination of a lean core of highly skilled people and computerized systems and webtools we deliver state-of-the-art maintenance management, changing the contract from

an effort driven to a performance driven contract for operations and maintenance with safety and availability as key performance drivers.

OUTCOMES FOR OUR CLIENT By acting as managing agent using a performance based maintenance approach in managing the tunnel assets of our client we delivered significant cost savings. Safety and availability requirements of the managed tunnels were met, guaranteeing smooth traffic flow in the province of North-Holland while allowing the client to focus on its core activities.

CASE STUDY

IMPROVE TRAFFIC OPERATIONS OF KEY COMMUTER CORRIDORS Project: Regional Traffic Operations ProgramClient: Georgia Department of Transportation

CASE STUDY

GUARANTEEING SMOOTH TRAFFIC FLOW THROUGH WELL-FUNCTIONING AND SAFE TUNNELS Project: Managing agent tunnels North-HollandClient: Province of North-Holland, The Netherlands

HEAD OFFICEArcadis NV ‘Symphony’ Gustav Mahlerplein 97-103 1082 MS Amsterdam P.O. Box 7895 1008 AB Amsterdam The Netherlands +31 (0)20 2011 011 info@arcardis.com www.arcadis.com

We have people and offices around the world. Our global network enables us to bring our knowledge and experience of projects worldwide and apply that expertise to specific local needs and situations. We are based in:

AustraliaBahrainBelgiumBrazil BruneiCanadaChileChina Czech RepublicDubaiFranceGermanyHong KongIndiaIndonesia

ItalyJordanKazakhstanKoreaMacauMalaysiaMexicoMozambiqueNetherlands OmanPeruPhilippinesPolandQatarRomania

RussiaSaudi ArabiaSerbiaSingaporeSlovakiaSpainSwitzerlandTaiwanThailandTurkeyUnited Arab EmiratesUnited KingdomUnited StatesVietnam

WHERE WE ARE IN THE WORLD

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CONTACTDon HardyGlobal Solution Leader Operate and MaintainT +31 (0) 884261169

E don.hardy@arcadis.com