seams: should i manage the assets or the projects?
TRANSCRIPT
Driving Value from Assetsproduced by:
Should I Manage the Projects or Manage the Assets?
Jon Greensill - SEAMS Ltd
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3 Critical Success Factors learnt from Successful Asset Planning Projects in Large Organisations
1. Get more people involved in the process– Make it simple and repeatable– Have a consistent planning process across assets and departments– Transparent / auditable process which captures local decision making knowledge
2. Speed up the process– Days and weeks not months– Easier to do means asset planning is not a special event– You can respond quickly when things change
3. Make best use of available data– Don’t wait for perfect data - measure data quality and use what you have– Relate decisions to data and understand uncertainty– Have a framework to make use of new data sources as they becomes available
Project or Asset Level Planning The Challenge
• Strategic Asset Management is often executed by evaluation
of a large portfolio of possible Projects that the company
could choose to do - Project Portfolio Optimization.
• But where do these Projects come from?
• Is a new Asset focussed approach possible?
Asset Centric or Project CentricProject Centric
– Looks to optimise a set of predefined projects– Investments are described as discrete projects with benefits/costs described at project level – Selects the optimal mix from the previously defined projects provided to it
Asset Centric – Considers all capital, operational and inspection interventions for each asset within specific asset classes – Investment model trades investment at asset level or across multiple asset classes– Uses latest asset data – often changing
Or a Combined Approach?
Portfolio Optimization
Project Based PlanningBenefits of Portfolio Modelling
• Delivers more value from the investment program for a level of spend• Increases the transparency of the investment planning cycle• Maximises the value of existing and ‘siloed’ investment approaches • Ensures the highest ‘value engineering’ projects are taken forward• Increases buy-in from all stakeholders
Constraints
• Have the right projects been created to be optimized?• Have the benefits and costs been accurately reflected? • Controls need to be in place to avoid gaming• Do the projects represent a broad enough set of options• How much effort did it take to generate the projects, many of which will not be taken forward
Asset Based PlanningBenefits of Asset Modelling• Right investment intervention for the right asset at the right time • Increases buy-in from all stakeholders• High efficiencies, typically between 7 and 17% • Increases the transparency of the investment planning cycle• Challenges historic, recurring decisions• Making best use of available asset data
Constraints of Asset Modelling• Where there are large volumes of assets, models can be time consuming to run as the data is granular• Cohorts or combined approach may be recommended• Models may need constraining to reflect external factors, eg regional spending, rates of change etc
What’s Changed?• Big Data
– More asset data available and even more to come (IOT)
– Some you asked for, lots you didn’t
• Big Data Processing– Distributed Computing (AWS / Azure)– Analytics of various flavours– Ability to solve/search/optimize very
large problems
…and businesses that need to respond to change faster than before
Model Metrics
A Note on Data Quality - Measure and Improve
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An Example of Integrated Asset and Project Planning• Population Served – 7.7M
• Water Mains – 28,000 Miles• Water Production – 1,800 MLD• Water Treatment – 2,500 MLD (>1000 Treatment
Works)• ~40% Metered• Leakage 440MLD (24%)
Some Current Issues..• Responding to regulatory changes• Speeding up the planning process• New Environmental pressures, e.g. Flooding
FinancialPortfolioAsset Resource
EDA Project Portal
EDA Optimise
Data Labs
Data Integration Layer
Wor
kflow
& A
utom
atio
n
EDA Developer
Monte Carlo What-If
Data Hub
AssetRegister
Results Viewer
Dash-board
MapView
EDA Platform
EDA Core Applications
Continue to Simplify the Asset Modelling…
13Manages process from raw data to optimised investment plans - quick to rerun the analyses given new data..
The Asset Modelling Process
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Assets & external
data
Automated Analysis of Asset Data
15Previously a manual/consultancy exercise – new results automatically re-configure the model
Combine Outputs from Asset Models into a Project Portfolio Model
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Assets & external
data
Assets & external
data
Assets & external
data
StrategicCross Asset
Results
EDA Portfolio
Manual Schemes(Risks &
Solutions)
Non-Infrastructure Strategic
Waste Water Strategic
Clean Water Strategic
StrategicCross Asset
Portfolio Model
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EDA Asset
SAP
EDA Portfolio
Strategic AMP Planning
Operational Risk Management
EDA Portfolio
Integrated Business Planning
Named Schemes
EDA AssetStrategic Asset
Planning(Models)
Issues (Fix now)
Risks (Fix later maybe)
Import
EngineeringStaff
Risk Evaluation & Management
Opti
ons
Opti
ons
Real-time
Monthly
Annual
EDA AssetDeployment Asset Planning (Models)
Committed Plan
Advanced EDAP
Web App
EDAP Web App
Advanced EDAP
Web App
ORM Portal
Dashboards
AMP Plan
STW’s Vision - Integrated Business Planning
Conclusion
• The industry has traditionally been solving the investment planning problem by using disparate systems, spreadsheets and ad-hoc solutions
• Organisations often struggle to deal with the differing decision time frames of strategy and delivery. This results in disjointed processes for the translation of strategic objectives into the everyday operational pressures
• Significant efficiencies can be achieved through the appropriate implementation of tools that have a link between both asset level optimization and project\programme optimization
• To solve the Service/Risk/$ challenges an enterprise solution is required which covers– Derivation of strategic investment plans– Cascade of a strategic plan to a delivery plan– ‘In-flight’ management and update of that plan
18Got a question? Contact [email protected]
