Asset Management

Asset Management Information System Training Program

Jakarta 2009

This document is confidential and is intended solely for the use and information of the party to whom it is addressed.

Asset Management Information System  Asset Management is a business discipline 

management of technical infrastructure

Why Asset Management? 

Tangibles that are used in the operation of a drinking water or wastewater utility

Where is the documentation of this device?

Who is responsible for this device?

What is the Who is the utilization owner of of this device? this Is there device? What is experience the with status of this device? this What is the total device? cost of this device?

Buildings

Tools

Machinery

ASSETS

Equipment

Pipes

Operator

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Asset Management Information System

Executive Summary

asset perspective

management information system

• Asset management deal with the left side of the balance sheet. • Famous quotation about balance sheet “on the LEFT side there is nothing RIGHT; on the RIGHT side there is nothing LEFT” • Asset management begins from selection, their selection, maintenance, inspection and renewal of the particular asset. • It plays a key role in determining the operational performance and profitability of industries that operate assets as part of their core business. • This emerging professional discipline deals with the optimal management of physical asset systems and their life cycles. It represents a crossdisciplinary collaboration to achieve best net, sustained value-for-money in the selection, design/ acquisition, operations, maintenance and renewal/ disposal of physical infrastructure and

• MIS is the big picture of information system flow, while asset management is part of the system that monitor corporate assets; covering several areas 1. Policy Development 2. Strategy Development 3. Asset Management Planning 4. Implement Asset Management Plans 5. Asset Management Capability Development 6. Risk Management and Performance Improvement 7. Asset Knowledge Management • A well-defined Standard of service (SoS) is the foundation of Infrastructure Asset Management. The SoS states, in objective and measurable terms, how an asset will perform, including a suitable minimum condition grade in line with the impact of asset failure. 3

Asset Management Information System

5 core questions of Asset Management

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Asset Management Information System

The Damages

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Asset Management Information System

understanding asset risks

Perfect World = Knowing Asset Risks Predict when an asset will fail (i.e., likelihood) Fully understand consequences of failure (i.e., impact)

Executive Summary Asset Maintenance Options

• Non-preventive (wait until it breaks) • Preventive (plan before it breaks)

Best Practices • • • •

List assets based on criticality Conduct a failure analysis Determine probability of failure Analyze failure risk and consequences

– Repair – Refurbish/rehabilitat e – Replace – Decommission

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Asset Management Information System

Executive Summary

sset has to deliver standard of service • The key components of the sustain SoS objective are: a) a defined standard of service b) measurable specification of how the asset should perform c) minimum condition grade d) a whole-life cost approach e) asset management plan • Example ……………..

illustration

• With a performance-based asset management approach, decisions are flexible and depend predominantly on the current condition of the asset as well as the age of the asset, and the likely future deterioration profile. • Example; a stormwater debris screen is cleared after a rain event, when it is partially blocked, rather than, say, every two weeks. The minimum condition grade provides a key boundary condition for making investment decisions. • Over the life of a typical infrastructure asset, a representation of the changes in condition grade, might look as

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Asset Management Information System

whole life cost approach

• Over the life of an asset, there are likely to be hundreds of individual interventions, which together sustain the agreed SoS. Undertaking a formal investment appraisal to assess options or the relative benefit for each individual intervention or even an annual programme of interventions would be very complicated, and prohibitively expensive. It is the sum of the cost of all the individual interventions, and their effect on the whole-life cost of providing the SoS that we are concerned about. • By implementing a system that keeps a historic record of past expenditure, coupled with a forecast of expenditure to sustain the SoS we can provide a solid foundation from which to assess the asset manager’s performance.

Executive Summary illustration

• At its most simple, Asset Management attempts to optimise the trade-off between maintenance and replacement. For a given standard of service every asset in a system requires a decision about how best to manage the asset, and at which point replacement or refurbishment may represent the most cost effective approach. The graph shown represents a summary of this, with three alternative asset management regimes, A, B & C.

• Example …………….. 8

Asset Management Information System

asset portfolio strategy

• An Asset portfolio strategy revolves around meeting customer needs in the most effective and efficient way. • Key asset portfolio strategy questions include: a) Is the need for the service real? b) What standard of service is required? c) Are the long-term costs of the current asset portfolio affordable? d) Have non-asset solutions been explored? e) What standard of service should new assets provide? • Asset Management Toolbox a) Asset register b) Visual condition grade assessment c) Asset valuation techniques d) Asset creation and acquisition decision-making e) Asset disposal decision-making f) Whole-life cost management techniques g) Auditing condition grade and

Executive Summary little history • The development of the Toyota Production System between 1948 and 1975 led the way for Infrastructure Asset Management, as an integrated approach to reducing cost. This has then been coupled with the principles of risk management from highly regulated nuclear, and petroleum industries. • Asset Management effectively puts these two parts together to deliver a defined service for the least cost. An early development in applying these ideas to publicly owned and operated infrastructure occurred in New Zealand with the passage of the Local Government Act 1974. This required each local authority to: a) Prepare an annual plan indicating performance measures in consultation with their community, b) Prepare an annual report outlining council performance against annual plan objectives, c) Adopt financial systems and policies in accordance with generally 9

Asset Management Information System • Department of Justice/U.S. Immigration and Naturalization Service • (Note: Major Information System last noted by legacy INS) • ABSTRACT: AMIS is a centralized, mainframe system that tracks the movement of all the assets of the Immigration and Naturalization Service (INS) from acquisition to disposal. The assets tracked include accountable property, automated data processing equipment, electronics, real property, weapons, and vehicles. The system also is used to assess and determine firearms qualifications on an ongoing basis to ensure that firearms are issued only to qualified and authorized personnel. • PURPOSE: AMIS simplifies the inventory process and provides an efficient and effective management tool for administering, controlling, and reporting INS inventory. • USE CONSTRAINTS: Users of AMIS will be

Example of AIMS • ACCESS CONSTRAINTS: All records in AMIS are protected from unauthorized access through appropriate administrative, physical, and technical safeguards. These safeguards include restricting access to those with a need-toknow to perform their official duties, using locks and alarm devices, passwords and/or encrypeted data communications. • AGENCY PROGRAM: The INS is the arm of the Department of Justice that is charged with border enforcement, immigration enforcement, and naturalization activities. AMIS is one of the tools utilized to accomplish this mission.

• SOURCES OF DATA: Records are generated from property purchase orders; from acquisitions, transfer and disposal data; employee locator documentation and the record subject. RESPONSIBLE OFFICE FOR DISTRIBUTING INFORMATION 10

Asset Management Information System

Enterprise Asset Management

basic to AMIS

basic to AMIS

• Enterprise asset management (EAM) means the whole life optimal management of the physical assets of an organization to maximize value. It covers such things as the design, construction, commissioning, operations, maintenance and decommissioning/replacement of plant, equipment and facilities. "Enterprise" refers to the management of the assets across departments, locations, facilities and, in some cases, business units. By managing assets across the facility, organizations can improve utilization and performance, reduce capital costs, reduce asset-related operating costs, extend asset life and subsequently improve ROA (return on assets).

• The functions of asset management are taking a fundamental turn where organizations are moving from historical reactive (run-to-failure) models and beginning to embrace whole life planning, life cycle costing, planned and proactive maintenance and other industry best practices. Some companies still regard physical asset management as just a more business-focused term for maintenance management - until they begin to realize the organization-wide impact and interdependencies with operations, design, asset performance, personnel productivity and lifecycle costs.

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Asset Management Information System

Enterprise Asset Management

basic to AMIS

basic to AMIS

• In capital-intensive industries such as utilities, process/discrete manufacturing, healthcare as well as real estate, physical assets (buildings, infrastructure and equipment) form a significant proportion of the total assets of the organization. These industries face the harsh realities of operating in highly competitive markets and dealing with high value assets and equipment where each failure is disruptive and costly. At the same time, they must also adhere to stringent occupational and environmental safety regulations • Given a physical asset, the objective of LCAM is to extract maximum productivity from the asset and minimize the total costs involved in its acquisition, operations as well as maintenance.

• Competitive pressures force organizations to minimize asset total cost of ownership and streamline their asset management operations (these typically involve myriad activities ranging from inventory, parts and labor management to contracts and vendor management for new works). As downtimes become increasingly expensive, both in terms of lost production capacity and unfavorable publicity, organizations are compelled to maximize their asset productive life cycles via optimal maintenance programs

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Asset Management Information System

AMIS

the definition

software asset management

• IT asset management (ITAM) is the set of business practices that join financial, contractual and inventory functions to support life cycle management and strategic decision making for the IT environment. Assets include all elements of software and hardware that are found in the business environment

• Software Asset Management applies to the business practices specific to software management, including software license management, configuration management, standardization of images and compliance to regulatory and legal restrictions—such as copyright law, Sarbanes Oxley and software publisher contractual compliance. Legal software use in an organization is enforced by such compliance companies as hardware asset management Business Software Alliance, SIIA and • Hardware FAST. asset management entails the management of the physical components of computers and computer networks, from acquisition through disposal. Common business practices include request and approval process, procurement management, life cycle management, redeployment and disposal management.

role of AMIS in organisation • Included in this responsibility are development and maintenance of policies, standards, processes, systems and measurements that enable the organization to manage the IT Asset Portfolio with respect to risk, cost, control, IT Governance, compliance and business performance objectives as established by the business.

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Asset Management Information System the goals

 The goals of a comprehensive ITAM solution are: a) To acquire appropriate IT assets for an organization with minimum costs and maximum benefits b) To optimize the use of each IT asset during its life c) To dispose of IT assets when they no longer provide a benefit compared to the cost to maintain them d) To support IT asset compliance e) To provide the information needed for internal and external requirements, such as: • planning for mergers or acquisitions • regulatory compliance • license renewal • vendor negotiations • contract negotiation and renewal • Illustrates the asset life cycle

The Goals of AIMS strategy • Asset and Configuration Management. When an IT organization knows what infrastructure • They have and where it resides, they can provide service continuity and service availability and • Can properly manage the costs of IT services. ITAM processes capture an organization’s asset • Portfolio details, such as asset configurations, contractual terms and conditions, ownership and Financial attributes. A comprehensive, centralized ITAM program can make accurate, up-todate • Information available as needed for harvesting and reusing assets, and asset allocation, • Budgeting and chargeback of IT services to meet business goals.

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Asset Management Information System • Increases Labor Efficiency Helps improve labor efficiency by helping the maintenance manager or supervisor plan the work. The system can originate a request via a repair order or by simply scanning the bar code on the unit. The system looks to see if any preventive maintenance is due or is coming due soon. It further checks for campaigns such as manufacturers' recalls. It even checks for any pending work – work previously needed but not severe enough to take the unit out of service. • Reduces Cost of Preventive Maintenance and Downtime • Optimum PM intervals and lower cost PM’s produce major savings. • Maximizes Warranty Claims • Cuts Inventory and Shrinkage • The technology helps to lower costs and increase performance

Benefit of AMIS • Reduces Labor Costs While Improving Maintenance Quality Most programs uses bar codes and scanners to eliminate most paperwork and keying of data into a computer system. • Saves Administrative Costs while Increasing Accuracy • Cuts Parts Costs Purchasing the right parts at the best prices is an objective of every organization. • Reduces Asset Investment Less downtime, longer life, and better specifications reduce investment. • Increases Resale Value A properly maintained unit lasts longer and is worth more when you sell it.

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Asset Management Information System

How AMIS Works

the system

example

• AMIS features make it possible to have the right part, in the right place, at the right time, with the right maintenance people doing the right preventive maintenance, at the lowest possible cost. • Current, low cost data storage devices now make it economically feasible to store, access, and use the vast amount of data for the thousands of parts which make up a single unit of equipment. • With the entry of an equipment ID, AMIS creates a work order for that unit. The system tells the mechanic every preventive maintenance operation that needs to be performed. • Bar coding technology makes it possible to record data accurately. Mechanics scan the bar code of the employee ID, the work order, parts and the system.

• When a specific system is identified; for example, a transmission, AMIS will; 2.Provide a full maintenance history. 3.Identify each part currently on the unit. 4.Identify preventive maintenance items that should be performed while the unit is in the shop. • Then, when the mechanic takes parts from inventory and scans them, the system charges the parts to the work order, updates inventory, and provides the data for proper inventory accounting. • It can even checks for errors. An exception report shows such errors as, "He was working on a transmission and checked out a fan belt." Draw your own conclusions about savings here. • MORE UPTIME = LOWER COST! 16

Asset Management Information System

basic to AMIS

• The asset register – the repository of data that identifies and physically describes the assets. The asset management functionality - that operates against assets defined in the register. The Asset Register is the heart of AMIS. It provides for the identification and description of all assets to the level deemed appropriate. The Asset Management Functionality includes the major functions of asset valuation, asset life cycle, and performance assessment of assets. • Asset Valuation/Depreciation – AMIS will provide for the recording of various valuations of an asset and account for their associated appreciation or depreciation. For constructed assets, particular emphasis will be given to replacement cost, which will be calculated on the basis of unit rates which are widely accepted in the construction industry.

System Functionality software asset management • Life Cycle Costing – AMIS will provide access to actual and forecast costs (and revenues) over the useful life of assets. Data on significant capital and recurrent costs will include, acquisition, maintenance, operations, refurbishment and disposal activities. The source of much of this data will be data sets established / maintained by other business processes (eg. works management, resource / energy utilisation). • Performance Assessment – To provide the ability to predict when an asset is likely to fail to meet its required levels of service. Examples of such factors are as follows: (1) Physical condition of the asset, (2) Level of asset utilisation, (3) Environmental factors (eg. health and safety, disability access, fire safety), (4) Currency of the asset’s technology, (5) Level of investment required to keep the asset operational, (6) Performance 17

Asset Management Information System Process Name

Program Coverage Functions

Dept

Roles

Request

• Request to provision a service or an asset approval of request • Determine fulfilment type (from inventory or new purchase)

• IT • Finance

• Asset Manager • Department Budget Manager • Service Desk

Procure

• Procure new assets or services when not in inventory • Negotiate and establish contracts with suppliers • Link contracts to catalogue line items • Receive new assets or services from Suppliers • Validate shipment (match received goods to order)

• Finance

• Procurement Manager

• Finance • Facilities (or IT)

• Asset Manager • Finance manager

Manage

• Execute IMAC processes

• IT

• Service Desk

Retire

• Retire obsolete assets from operational use • Acquire legal indemnification for disposed assets • Update asset status

• IT • Finance

• Asset Manager • Finance Manager

Plan

• Provide enough stable consistent information for accurate budgeting and forecasting

• IT • Finance

• Asset Manager • Department Budget manager • Finance Manager

Receive

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Asset Management Information System

Key Outcomes

basic to AMIS

software asset management

Asset Management Plans • Assets that better match agencies’ business service requirements • Optimised intervention actions • Extension of asset life • Managed deferral of expenditure • More informed and better disclosure in decision-making at both agency and whole – of government levels. Integrated Asset Planning Environment • The definitional standards and conventions of the AMIS Asset Register and its asset management functionality will allow aggregation of data and establishment of the environment to permit consistency and hence comparative analysis of asset performance

Life Cycle Costing • AMIS will provide access to actual and forecast costs (and revenues) over the useful life of assets. Data on significant capital and recurrent costs will include, acquisition, maintenance, operations, refurbishment and disposal activities. • The source of much of this data will be data sets established / maintained by other business processes (eg. works management, resource / energy utilisation). Performance Assessment • Provide the ability to predict when an asset is likely to fail to meet its required levels of service – and hence when intervention action is needed so that service levels can continue to be met. • Performance should be measured for any critical stress factors that are likely to lead to asset failure 19

Asset Management Information System

AMIS Project Schedule Production system

System specification

System evaluation

Pilot system implementation

Test

Data import & migration

software license management procurement of standard resources common central repository for IT devices

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Asset Management Information System

Logical Architecture

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Asset Management Information System

Physical Architecture

hardware

& software information

Intranet

Data Consumption

e-procurement

Scanner to determine

central repository

Core AMS

license management

Data Sources

Transaction server

Core AMS client

IT Experts

Web interface

Administrators

Intranet

Repository Report Management s

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Asset Management Information System

Physical Architecture

Prototype for accelerator infrastructure management component of an integrated information management  contribute to full life cycle support 

Engineering Data Management

Asset Management

Facility Management

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Asset Management Information System

General Purpose Data Model

Enables common management of entire technical infrastructure 

IT devices, magnets, power supplies, vacuum pumps,... Asset

connected with

Name ID Install Date Responsible

documentation

Asset

components

is a

Monitor

Document

Computer

Hard Disk

is a

connected with

components is a

is a

has

Manual

Coil

Document

has

Magnet

Drawing

Yoke

Keyboard

Support RAM CPU Serial Number

Switch

Name ID Install Date Responsible

documentation

connected with

Maximum Current Maximum Gradient Serial Number

Power Supply

connected with

Example for a general purpose data model containing both IT devices (left) and accelerator components (right).

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Asset Management Information System

General Purpose Data Model

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Asset Management Information System

PDMS Integration using IPP Program Document from PDMS

AMS-PDMS Integrator

AMS Native Client

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End of Document