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HomeMy WebLinkAbout03. Asset Management Implementation Planning3. <<S Pq Asset Management Needs Assessment Memorandum Prepared for: Central Contra Costa Sanitary District October 2014 This page intentionally left blank Project Team This Draft Asset Management Needs assessment Memorandum was completed through the combined efforts of staff from Central Contra Costa Sanitary District (CCCSD), Radkin Services, and Carollo Engineers. The report was prepared under the direction of Dana Lawson. The Asset Management Needs Assessment participants are acknowledged below. Person Andrew Antkowiak Capital Projects Division Manager Roger Bailey General Manager Thomas Brightbill Environmental Services Sr. Engineer Danea Gemmel[ Environmental Services Division Manager Tom Godsey Environmental Services Sr. Engineer David Heath Director of Administration Stephanie King Purchasing/Materials Manager Carolyn Knight Capita[ Projects Engineering Support Supervisor Dana Lawson Capita[ Projects AM Sr. Engineer Roy Li IT Administrator Doug Little Plant Operations Superintendent Sasha Mestetsky Capital Projects Collection System Sr. Engineer Ed ar Lopez Capital Projects Treatment Plant Sr. Engineer Neil Meyer Plant Maintenance Division Manager Nate Morales Plant Ops. Process Control Sr. Engineer Teji O'Malley HR Manager Jean -Marc Petit Director of Engineering Don Rhoads Collection Sys. Field Operations Superintendent Dave Robbins Plant Maintenance Superintendent Lu a Saldana Administrative Services Supervisor Michael Scahi[[ Communication Services Manager Paul Seitz Collection System Operations Division Manager Thea Vassallo Finance Manager Alan Weer Plant Operations Division Manager Steve McDonald Carollo Engineers Rebecca Overacre Carollo Engineers Randy Weaver Radkin Services Asset Management Needs Assessment Memorandum Table of Contents EXECUTIVE SUMMARY I SECTION 1: INTRODUCTION AND SUMMARY 1 1.1 Background Information 1 1.2 AM Needs Assessment Objectives 2 SECTION 2: ENTERPRISE ASSET MANAGEMENT 5 2.1 Asset Management — A Different Way of Doing Business 5 2.2 Asset Management — Best Practice Description 6 SECTION 3: NEEDS ASSESSMENT METHODOLOGY 9 SECTION 4: CURRENT CCCSD AM PRACTICES 14 4.1 Asset Management Needs Assessment Results for CCCSD 14 4.2 Summary of Findings 17 SECTION 5: NEXT STEPS 22 Asset Management Needs Assessment Memorandum List of Figures FIGURE 1 USEPA ASSET MANAGEMENT FRAMEWORK ............................ FIGURE 2 PRIMARY LEVEL NEEDS ASSESSMENT CHART ........................... FIGURE 2 -1 ASSET HIERARCHY ................................. ............................... FIGURE 3 -1 ASSET MANAGEMENT VALUE CHAIN ...... ............................... FIGURE 4 -1 PRIMARY LEVEL NEEDS ASSESSMENT CHART ......................... FIGURE 4 -2 CURRENT, TARGET, AND BAP RATINGS FOR CCCSD ............... List of Tables TABLE 1 VALUE CHAIN WEIGHTINGS ................ ............................... TABLE 3 -1 PRIMARY ASSET MANAGEMENT CATEGORY WEIGHTINGS TABLE 3 -2 AM CATEGORY WEIGHTINGS ............ ............................... Asset Management Needs Assessment Memorandum ............................... .............................11 ............................ ............................... IV ............................. ............................... 6 ............................. .............................11 ............................. .............................15 ............................. .............................16 ...............11 .............12 .............12 List of Acronyms AM Asset Management AMP Asset Management Plan BAP Best Appropriate Practices BCE Business Case Evaluation BRE Business Risk Exposure CMMS Computerized Maintenance Management System CIB Capital Improvement Budget CIP Capital Improvement Plan GDI Geographic Data Interface GIS Geographic Information Systems IT Information Technology IIMM International Infrastructure Management Manual MMI Maintenance Managed Item O &M Operations and Maintenance ORDM Optimized Renewal Decision Making PAS Publicly Available Standard (U.K.) TAMP Total Asset Management Plan USEPA United States Environmental Protection Agency Asset Management Needs Assessment Memorandum Executive Summary Central Contra Costa Sanitary District ( CCCSD) has implemented various aspects of asset management throughout the organization, but would like to move towards a consistent, comprehensive, and strategic asset management program with documented processes and procedures for data management, analysis, and evaluation for the treatment plant, collection system, pumping stations, recycled water distribution system, and general improvement assets. The goal is to develop a 5 -year implementation plan with the intent that the asset management practices that are developed will be absorbed into CCCSD's standard business practices to provide a consistent approach across the organization to manage the asset portfolio efficiently. As the first step toward developing its asset management program implementation plan, CCCSD contracted Carollo Engineers and Radkin Services (Carollo Team) to assist in a strategic review of CCCSD's current asset management practices and benchmark them against best appropriate asset management practices. The needs assessment process identifies areas of good asset management practices as well areas for improvement. The Carollo Team will assist in developing a set of Asset Management (AM) improvement projects, which will help bring CCCSD's asset management practices closer to established industry best practices. The AM needs assessment process allows the quantification of CCCSD's management practices by identifying the gaps between the current state and the desired state of asset management activities. Asset Management Needs Assessment Process CCCSD's asset management performance was assessed using the USEPA's asset management framework and measured against a set of Best Appropriate Practices (BAP) to identify improvement opportunities. This assessment, combined with value chain weightings for the seven major AM practice areas, formed the basis to identify and develop prioritized improvement projects. The USEPA's asset management framework is shown below. Asset Management Needs Assessment Memorandum Figure 1 USEPA Asset Management Framework Current State of our Assets? Required Sustained Level Of Service? ®Which Assets are Critical to Sustained Performance? 0 Management Strategies for the Assets . Best Long -Term funding strategy The AM framework focuses on seven major asset management practice areas (referred to as the value chain). Weighing factors were applied to each of the seven areas. The weighting percentages were set to provide results for an organization desiring sustainable practices in asset management. These value chain weightings were used to rank and prioritize improvement projects. Value chain weightings are summarized in Table 1. Table 1 Value Chain Weightings Weighting Asset Management Needs Assessment Memorandum Current Practices The Carollo Team's methodology assesses an organization's current state of asset management in terms of more than 150 individual business practices, processes, and systems that characterize best practice in asset management. The asset management value chain comprises key categories which organizations must simultaneously manage effectively to reach proficiency or even excellence in asset management practices. Each category identifies and measures various organizational processes critical for asset management decision - making. Figure 2 represents the benchmarking chart for CCCSD at the primary level of the value chain. This chart summarizes the current performance and BAP targets for each of the elements in the AM framework. Current CCCSD asset management practices are described numerically for each value chain category based on the information the Carollo Team received during the Needs Assessment Workshops and follow -up interviews. The assessment results are summarized in Figure 2. The top of the blue bars represents CCCSD's current asset management practice level rating scores The top of each red bar in the figure represents the 1 -5 year improvement target for CCCSD, and The top of the tan bars represents the BAP level for CCCSD. A rating of 20 or less reflects little knowledge and /or poor business practices and a rating level of 40 reflect good knowledge with ad hoc processes. The majority of the current ratings fall within the "systematic approach" and "proficient" ranges of current performance. This is typical for an organization in the early stages of its AM Program. Short -term 1 -5 year targets have been set to identify where CCCSD should be targeting its areas for improvement. The longer -term BAP targets have been set in the "Proficient" and "Excellence" ranges. It should be noted that a low rating does not necessarily indicate an area for improvement as the value chain weightings may steer improvement in another area first. Asset Management Needs Assessment Memorandum iii Figure 2 Primary Level Needs Assessment Chart Overall Primary Category Ratings 100 ._._...�_.._. 90 Excellence j 80 /a 00 Proficient so ao - u RAP 10 21 -5Yr Target Systematic Approach ® current zo Awareness 10 Innocence p _ . - -- o/ o` 1c yo Da aF ac R4 L OS4' Based on the needs assessment results, the following summary of findings provides a potential vision for progressively improving CCCSD's asset management program to a "Proficient" and in some areas to an "Excellence" range in the coming years. Although this vision is presented as a realistic picture of what CCCSD could do, CCCSD will ultimately need to develop its infrastructure Asset Management Improvement Plan for managing its assets well into the future. Summary of Findings From the needs assessment, CCCSD's areas of strength and areas in need of improvement are identified. The main output of the needs assessment is the identification of the current state of asset management activities and areas that warrant further analysis. It is important to recognize that CCCSD is already undertaking asset management in many areas of the organization. To date, asset management plans have been developed for the Collection System, Force Mains, and the Treatment Plant. The needs assessment used for this project was undertaken at the organization level, using an approach where participants from multiple divisions were polled in workshops and interviews on asset management activities. Although some divisions in CCCSD that would have ratings in areas that would fall in the upper "proficient' and "excellence" ranges are not reflected individually, because the ratings presented in this assessment are based on the overall AM practices of CCCSD. This memorandum is not intended to provide a scorecard for comparison of performance between CCCSD and other organizations. Asset Management Needs Assessment Memorandum /.v Areas of Strength The following areas where CCCSD is considered to be performing well include the following: * Demand Analysis — CCCSD has a very good understanding of the future demands for services through: the treatment plant data; air and water permits; hydraulic modeling; and by projecting the number of connections. Knowledge of Assets (Collection Assets) — The asset register for linear assets has good data and is identified in the GIS with established data standards. Asset Management Information Systems — An IT Master Plan is currently being developed, therefore an additional information systems assessment was not included as part of this process. Yet it is important to note the GIS and GDI applications used for the collection system assets, and soon the plant assets. Asset Creation and Acquisition — A Project Procedures Manual is used by the Engineering Department for projects from the preliminary design stage, the design process, the bid process, contract initiation process, and the contraction administration / construction inspection stages. Customer Information /Consultation —The Communications Services Group does an notable job in communicating with customers and CCCSD staff through newsletters and surveys. * Training Programs — Cross - training is provided where applicable. Staff is encouraged to obtain licenses and certifications for self - development and career advancements. Attitude & Culture —The attitude and culture of CCCSD staff was supportive of the asset management program. Asset Management Strategic Goal— By making the Asset Management Program a part of the Strategic Plan, CCCSD displays the dedication and commitment in advancing its asset management practices. Areas of Improvement A number of areas of improvement have been identified. A brief summary of these improvement areas is listed below: Business Process Mapping — The business processes within CCCSD are limited or outdated with a substantial reliance on self- managed work management processes. * Business Risk Exposure (BRE) — A formal evaluation of its business risk as part of the asset management decision - making process is not being utilized. Business Case Evaluations (BCE) — A formal CIP evaluation process is in place but lacks the rigor in the decision making process with little consideration to the risk and priority of the project to CCCSD. Asset Management Needs Assessment Memorandum Asset Hierarchy — A high -level asset hierarchy is started for the entire District; however it is only built for the plant assets in Mainsaver using parent/child ID's. Knowledge of Assets (Plant) —Data standards for the plant assets identified in the CMMS has not been established. Valuation — A systematic process for valuing individual CCCSD assets does not exist for the replacement of assets to project long -term funding requirements. Operation and Maintenance Data — Currently, only maintenance hours are recorded on maintenance work orders for collection system assets. The collection of time, parts and equipment cost data and work order history is imperative for all assets. * Failure Modes and Condition Assessment Protocol (Plant) —A pilot Reliability Centered Maintenance (RCM) program has been started at the plant. As part of this pilot program, condition protocols need to be established to assist staff with a process for the ongoing determination of the physical condition of its infrastructure assets. ca Asset Management Information Systems — The Collection System Operations group has a current need for the replacement of its CMMS (Accela) which is no longer supported. The new CMMS should also be evaluated to consolidate all assets into one system. Contract Administration — Project Managers in the Engineering Department have access to Microsoft Project for managing projects; however it is not consistently or uniformly used by the engineering staff. * Knowledge Management— With the large turnover of staff over the last several years, it is critical for CCCSD to develop a program for retaining the asset and organizational knowledge before additional retirements and departures occur. Life Cycle Asset Management Roles and Responsibilities — A formal asset management steering committee has not been established to help promote and implement the program. There is a lack of understanding of staff as to what their role is in the AM program. Quick Starts Some "quick starts" have been identified that CCCSD may choose to implement in the shorter term. These improvements generally take no more than a 6 -12 month period to implement and provide immediate benefits to the organization. These "quick wins" are discussed below: Life Cycle Asset Management Roles and Responsibilities — CCCSD has drafted an asset management policy, however this policy has not been formally adopted nor has an asset management steering committee been established to help promote and implement the program. The forming of an asset management leadership role helps to build a solid foundation to construct the asset management program. There is a lack of Asset Management Needs Assessment Memorandum vi understanding how the AM portion of staff roles links with others throughout the organization. Information Systems — CCCSD should move forward with the procurement of a replacement CMMS for the Collection System and potentially consolidate all CCCSD's assets into this one system. Asset Hierarchy and Data Standards — Continue with this work in progress as a priority. All other project improvements are dependent on a good framework. Project/Program Management — There are currently four significant projects underway within CCCSD (Cost of Service Study, IT Master Plan, Asset Management Implementation Plan, and Succession Planning). In talking with staff, there seems to be some confusion and frustration as to the coordination of efforts. A Project Manager is assigned to each of the projects, however there is not a Program Manager assigned to coordinate these initiatives. A recommendation would be to assign a Program Manager to provide this coordination. The major reason for the failure of asset management programs is the lack of organization buy -in and the allocated responsibility for the implementation. In order to prevent this failure and lose implementation momentum, it is recommended that the Organizational Structure and Asset Management Training projects be implemented as soon as possible. Asset Management Needs Assessment Memorandum vii Section 1: Introduction and Summary 1.1 Background Information Established in 1946, the Central Contra Costa Sanitary District (CCCSD) "is a special district responsible for the collection and treatment of wastewater in a 146 square mile area of central Contra Costa County." CCCSD collects and treats the wastewater of 462,000 residents and more than 5,000 businesses in 11 cities in central Contra Costa County. CCCSD's mission is: "To protect public health and the environment by: • Collecting and treating wastewater • Recycling high quality water • Promoting pollution prevention." CCCSD's vision is to "Be a high performance organization that provides exceptional customer service and full regulatory compliance at responsible rates," and it has articulated a series of goals including: Protect public health and the environment Maintain existing assets * Respond to regulatory and community concerns Accommodate planned growth. CCCSD is governed by a five member Board of Directors, each elected to a four -year term. The General Manager, Secretary of CCCSD, and Counsel for the District report to the Board while the managers' report to the General Manager include the Director of Administration, Operations, and Engineering. CCCSD is committed to improving its asset management program and has full support from the Board of Directors and General Manager. CCCSD has implemented various aspects of asset management throughout the organization, but would like to move towards a consistent, comprehensive, and strategic asset management program with documented processes and procedures for data management, analysis, and evaluation for the treatment plant, collection system, pumping stations, recycled water distribution system, and general improvement assets. Asset Management Needs Assessment Memorandum 1.2 AM Needs Assessment Objectives The intent of this memorandum is to document CCCSD's current asset management practices, set improvement targets based on what best appropriate practices (BAP) should be for CCCSD, and provide a plan and schedule to meet the recommended targets. BAP targets are generally set less than the World's Best Practice rating of 100. In many cases, the costs and implications of attaining World's Best Practice may be greater than the achieved benefits. This memorandum documents the current state of asset management practices within CCCSD and serves as a guide for implementation of advanced asset management practices for CCCSD. Through implementation of advanced asset management practices, CCCSD intends to make data informed decisions to ensure only necessary work is completed. Working closely with CCCSD, the Carollo Team has developed a set of improvement recommendations and set the key business and operational practice targets for improving asset management practices within CCCSD. The purpose of this technical memorandum is to document the Asset Management (AM) assessment process, present the findings, and provide recommendations for future actions in the form of a series of improvement projects to advance CCCSD's AM Program. The information for this assessment was drawn from inputs from key CCCSD staff. The reliability of the results is as accurate as the input that fueled the analysis process. The main output of this memorandum is to identify the current state of asset management activities and to set improvement targets to improve asset management practices. This information will be used to develop a set of projects and a roadmap to assist with the implementation of asset management practices at CCCSD. Please note, this memorandum is not intended to provide a "scorecard" for comparison of performance between CCCSD and other organizations. The Carollo Team reviewed past studies and reports, facilitated group meetings and assessed the current performance of CCCSD with regards to each of the relevant quality elements of the USEPA AM framework. The Carollo Team conducted workshops and interviews with key staff to further supplement and verify the asset management processes and practices identified during the needs assessment process. Examples of forms, procedures and reports were either collected or photos were taken to document our findings. Carollo selected interviewees based on their specific knowledge and experience. The Carollo Team's approach was to review CCCSD's technology, organization, and asset management processes; compare CCCSD's current asset management practices to those practices considered best appropriate in class, and set reasonable and relevant improvement targets. Setting these future improvement targets is an important activity in this assessment and is identified by determining the BAP for CCCSD. BAP is generally less than best practice for each asset management category but does represent an achievable, affordable target level for an organization and its business culture. BAP improvement targets were set in the 1 -5 year range for CCCSD. Asset Management Needs Assessment Memorandum 2 Asset Management Needs Assessment Memorandum The following fundamental functions were evaluated for each potential area of improvement in asset management: Assess current asset management program against BAP f) Highlight areas of strengths and opportunities for improvement Recommend Asset Management improvement projects to be implemented in order to close the gaps between current practices and BAP Current business practice and BAP targets will vary by organization. Not every organization will want to become the best in the world at asset management, so BAP practice targets are set to guide the organization to the right level of asset management implementation for them. The results of the CCCSD assessment, lower scores in many asset management practice areas, are common for organizations in the early stages of developing an asset management framework and culture for infrastructure management. The Carollo Team will use the AM assessment to identify improvement projects for implementation in detail for the next five years. The intent is that CCCSD will initially have a clear roadmap for improved service delivery and AM program development, and then reassess /update their program status by the end of year five. The improvement projects aim to assist the CCCSD in the following: Establish the framework and roadmap for building the AM program in -line with the International Infrastructure Management Manual (IIMM), as well as the USEPA's 2008 Asset Management: A Best Practices Guide Evaluated existing business practices and guidelines • Build on CCCSD staff involvement • Establish and document Levels of Service statements (i.e. Statement of Work) • Set a baseline for monitoring service delivery, providing a basis for demonstrating future quantitative improvement • Provide a common language to help CCCSD understand, accept, and implement their AM program Implementation of this program will result in great strides towards using the principles and practices of advanced asset management. Asset Management Needs Assessment Memorandum 4 Section 2: Enterprise Asset Management 2.1 Asset Management — A Different Way of Doing Business Asset management is variously defined as follows: A management paradigm and body of management practices, applied to the entire portfolio of infrastructure assets at all levels of the organization, seeking to minimize total costs of acquiring, operating, maintaining, and renewing assets, within an environment of limited resources, while continuously delivering the service levels customers desire and regulators require, at an acceptable level of risk to the organization. — (USEPA) An advanced asset management approach that seeks to optimize activities and programs to meet agreed service standards through the development of management tactics based on the collection and analysis of key information on asset condition, performance, life -cycle costs, risk costs and treatment options — (IIMM, International Infrastructure Management Manual) Systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan — (Publicly Available Standards (PAS) 55, UK Centre for Asset Management) All definitions describe a way of doing business that: c, Bases itself in performance Strives for optimal results through continuous improvement Involves comprehensive, systematic collection and analysis of asset information to drive an organization's business activities As such, asset management is a "means to an end," the "end" being: Improved transparency and accountability Increased financial performance Decreased risk that is identified and accepted by staff and stakeholders alike * Adopted sustainable levels of service that balance service quality, risk, and cost All of this aligns well with CCCSD's objectives, namely: * Protect and enhance the quality of life and water resources Deliver outstanding performance in an efficient manner Asset Management Needs Assessment Memorandum 5 CCCSD has yet to establish and institutionalize a performance -based management framework that is critical for driving improved management of their assets. Such a framework would demonstrate the purpose of improved asset management, but would also provide staff with clear purpose and context for any necessary organizational change and /or change in business practices. 2.2 Asset Management — Best Practice Description An organization that is delivering BAP in asset management can make the following claims: We know the assets we own and /or for which we have responsibility or legal liability because we have them recorded down to the maintenance managed item (MMI) level in a structured, formal, up to date registry. cz We know the condition, performance, utilization, reliability and costs of our assets down to the MMI level (as justified) because we regularly monitor and assess a broad range of asset characteristics (as justified). We aggregate the data upwards to provide outputs for cost and performance management using parent -child relationships such as: Figure 2 -1 Asset Hierarchy Facili% � Facility + Processes Process ♦ Systems + Asset Systems + Components aR Assets Components We routinely use this information to develop an asset "condition" index that allows us to integrate customer, user, and technically based requirements. Our managers have ready access to our asset data and knowledge through corporate information systems that effectively enable our integrated asset management processes and practices. Asset Management Needs Assessment Memorandum 6 We thoroughly understand the relationship between different levels of service and their respective life -cycle costs. Our performance management process routinely strives for the optimum balance between cost, risk, level of service, and customer /regulatory expectations. v, We understand our long -term ( >_ 20 years) funding needs for capital and operating programs. Our management practices result in the lowest life cycle cost that meets the level of service and other performance requirements. Our current and future levels of service (quantity and quality) are documented, well understood, and accepted by all levels of our organization and our stakeholders. This includes service demand, asset condition, function /size /type (fit for use), reliability, repair response times, and regulatory requirements. We use a structured and consistent performance -based asset management process. As an ongoing part of that process, we identify gaps (positive and negative) between current and desired performance and act accordingly. We thoroughly understand which assets are critical to our meeting our service levels. We routinely monitor these assets and make every reasonable effort to avoid their failure. We routinely monitor and assess the likelihood and consequence of asset - related risks, in terms of our whole of business activities. We achieve best value for money spent through routine, structured, and consistent organization -wide business processes for capital, operations, and maintenance programs alike. We understand the total costs and benefits of projects and programs in terms of our business objectives and costs before proceeding. We consider "full costs" in our asset investment decisions, including indirect costs arising from social and environmental impacts. We only proceed with capital projects if there is sufficient money to operate and maintain the resulting assets. We strive for continuous improvement through a routine, structured process. For example, we routinely compare our performance against best in class and other businesses, including needs assessment. Our organization is structured to enable effective asset management. Asset management roles and responsibilities are documented and routinely communicated. Our training programs are designed to proactively promote asset management skill development. Asset Management Needs Assessment Memorandum Our corporate commitment to asset management is documented and routinely communicated through our asset management policy(s). We report comprehensively on our asset performance and cost at least every 5 -years via the development of our Asset Management Plan. We routinely and proactively seek input on our performance from our customers and other stakeholders, including key individual projects and programs. We report our asset management performance routinely in an infrastructure report, called an Asset Management Plan. Asset Management Needs Assessment Memorandum 8 Section 3: Needs Assessment Methodology The Carollo Team's methodology assesses an organization's current state of asset management in terms of more than 150 individual business practices, processes, and systems that characterize best practice in asset management. To support the remaining sections of this memorandum, key parts of that methodology are included in this section. The Asset Management Value Chain The AM Value Chain (shown in Figure 3 -1) comprises key organizational processes (categories) that organizations must manage effectively to reach excellence in asset management. Each category identifies and measures various organizational components that are critical for asset management decision - making. The methodology follows the IIMM methodology and USEPA AM Framework. It is organized into seven primary categories with 26 secondary categories and more than 150 categories at the tertiary level, thus obtaining a detailed, wide spectrum assessment of an organization's AM practices. The value chain categories are: 1. Life -Cycle Processes and Practices comprise: 1.01 Demand Analysis - assesses the way an organization understands customer and other stakeholder demand for an asset; promotes construction and maintenance of assets that neither exceeds nor fall shorts of expectations. 1.02 Knowledge of Assets - assesses an organization's processes, practices, and policies for acquiring and maintaining asset information, including data standards. 1.03 Accounting and Costing - assesses the quality of processes used to determine the "true" cost of service. 1.04 Strategic Planning (Life Cycle) - assesses the processes used to prepare and maintain long -term strategic plans. 1.05 Capital Improvement Project (CIP) Evaluation and Approval Process - evaluates the processes used to justify capital investments. 1.06 Corporate Business Risk Assessment and Management - assesses the process for measuring risks associated with decisions related to commercial business, levels of service, project delivery, and investment. 1.07 Asset Creation and Acquisition - assesses the processes used to create and /or acquire necessary assets. Asset Management Needs Assessment Memorandum 9 1.08 Asset Rationalization and Disposal - examines how an organization rationalizes its asset investments and handles asset decommissioning and disposal. 1.09 Asset Operations — assesses operational practices. 1.10 Asset Maintenance — assesses maintenance practices. 1.11 Work/Resource Management -assesses the quality of processes and practices used for work management. 1.12 Review Audit (Continuous Improvement Processes) - examines the processes for reviewing development and implementation of the asset management program. 2. Information Systems involve: 2.01 Primary Information Systems - the finance information system, customer and property records, asset register, geographic information system and the maintenance management system. 2.02 Secondary Information Systems - the knowledge management, inventory management, condition and capacity models. 2.03 Tertiary Information Systems - risk assessment, optimized renewal decision- making, and life cycle cost system. 2.04 General Overall Information System Issues - assesses the level of integration, user friendliness, system access, system strategy, and effectiveness of the asset management information systems. 3. Data and Knowledge - measures the type and quality of asset management data: 3.01 Primary Data - asset categories, asset hierarchy, asset location / plans, primary physical asset attributes, and valuation data. 3.02 Secondary Data - detailed asset attributes, condition assessment, performance and utilization, maintenance data, operations and failure management data, and works / resource data. 3.03 Tertiary Data - risk assessment and risk reduction data, cost histories, intervention options and costs, optimized renewal data, and life cycle cost data. 4. Commercial Tactics - the organization's business processes to promote asset management, including identification of core and non -core activities, packaging of contracts, specification quality, contract supervision, contractor selection and work quality control. Asset Management Needs Assessment Memorandum 10 5. Organizational Issues - the way in which the organizational structure, roles, and responsibilities support asset management. The assessment is judged against the key success factors of sponsor, structure, policy, asset management roles and responsibilities, asset management steering committee, corporate asset management team, and overall commitment to the program. 6. People Needs - how an organization manages its employees and how it handles human resource issues related to asset management, including skills and age profiles, attitude and culture, change management activities, training programs, corporate knowledge management, and equipment / support systems required to sustain asset management. 7. Asset Management Plan - draws together all categories of the value chain to assess the organization's ability to produce an effective asset management plan. Figure 3 -1 Asset Management Value Chain Information Systems Lifecycle Process & Data & Practices Knowledge F,PpTotal ., Organizational Needs -! Commercial Tactics Outcome: Sustainable, best value service delivery Asset Management Needs Assessment Memorandum 11 The value chain categories are shown in Table 3 -1. For the purpose of this assessment, relative weights were allocated to each of these categories as follows: Table 3 -1 Primary Asset Management Category Weightings Priority weightings were allocated to the secondary categories as shown in Table 3 -2. These weightings were used to prioritize the needs assessment results and guide the improvement initiatives. Asset Management Needs Assessment Memorandum 12 Table 3 -2 AM Category Weightings Primary Category Secondary Category Weight 1.01 Demand Analysis 10 1.02 Knowledge of Assets 10 1.03 Accounting & Costing 5 1.04 Strategic Planning (Life Cycle) 12 1.05 Capital Improvement Project (CIP) Evaluation and Approval Process 12 1.06 Corporate Business Risk Assessment and Management 15 1.07 Asset Creation /Acquisition 5 1.08 Asset Rationalization & Disposal 0 1.09 Asset Operations 10 1.10 Asset Maintenance 10 1.11 Work /Resource Management 5 1.12 Review Audit (Continuous Improvement Processes) 4 1.13 Development Administration 2 Asset Management Needs Assessment Memorandum 12 Scoring the Categories The current state of asset management is assessed using information from the workshops and scored for each of the 150 individual existing practices, processes and systems; the following quality rating scale applies: 0 = Little or no knowledge 20 = Little knowledge & ad hoc processes 40 = Good knowledge & ad hoc processes 60 = Consistent processes & partially documented 80 = Extensive knowledge & partially documented 100 = Fully documented & externally audited Life Cycle Process and Practices The following section describes CCCSD's performance in terms of the Life Cycle Process and Practices component of the Gap assessment. Asset Management Needs Assessment Memorandum 13 Table 3 -2 AM Category Weightings Primary Category Secondary Category Weight 100 2.01 Primary Information Systems 50 2.02 Secondary Information Systems 30 2.03 Tertiary Information Systems 10 2.04 General Overall Information Systems Issues 10 100 3.01 Primary Data 40 102 Data _ . Knowledge Secondary Data 30 Tertiary Data 30 100 Scoring the Categories The current state of asset management is assessed using information from the workshops and scored for each of the 150 individual existing practices, processes and systems; the following quality rating scale applies: 0 = Little or no knowledge 20 = Little knowledge & ad hoc processes 40 = Good knowledge & ad hoc processes 60 = Consistent processes & partially documented 80 = Extensive knowledge & partially documented 100 = Fully documented & externally audited Life Cycle Process and Practices The following section describes CCCSD's performance in terms of the Life Cycle Process and Practices component of the Gap assessment. Asset Management Needs Assessment Memorandum 13 Section 4: Current CCCSD AM Practices 4.1 Asset Management Needs Assessment Results for CCCSD Current CCCSD asset management practices are described for each value chain category based on the information the Carollo Team received from the needs assessment workshops and interviews. When interpreting the results, it is important to note that a low score does not imply CCCSD AM practices are poorly managed. Rather, it indicates improvements can be made to the asset management program to benefit CCCSD. The assessment results are summarized in Figure 4 -1 at the primary level, and Figure 4 -2 at the secondary level. The top of the blue bars represents CCCSD's current asset management practice level rating scores �x The top of each red bar in the figure represents the 1 -5 year improvement target for CCCSD, and The top of the tan bars represents the BAP level for CCCSD. A rating of 20 or less reflects little knowledge and /or business practices and a confidence level rating of 40 reflects good knowledge with an ad hoc processes. In all cases, the Carollo Team suggests that BAP for CCCSD should be less than Leading Industry Practice (100 rating). In many cases, the costs and implications of attaining Leading Industry Practice in every category may be greater than the achieved benefits for any individual Agency. As a result, even "best in class" operations are typically operating at less than Leading Industry Practice. Asset Management Needs Assessment Memorandum 14 Figure 4 -1 Primary Level Needs Assessment Chart Overall Primary Category Ratings 100 -- — - -- — -- - -- — - -- — -- - - 90 Excellence 80 70 60 Proficient 50 - - - -- 40 - -- - _ U BAP 30 _ ■ 1 -5 Yr Target Systematic Approach ■ current 20 Awareness 10 - - -- - Innocence o �``�5 eccy aao� ��Ly eah lay Q �a Q`a hays o��e ac. ale \fie `Q� Ore yye4r �a�`oc ti��c ���i? `�a``oc QeoQ Qio�e clot Oa of Oi4'a� Asset Management Needs Assessment Memorandum 15 100 90 Excellence 80 70 60 Proficient so 40 � Systematic Approach 30 Awareness zo Innocence 10 Figure 4 -2 Current, Target, and BAP Ratings for CCCSD Secondary AM Category Ratings q, acaPQoe °P a�ao�\ae� °J�cyy °AJ`aO`��Qgz' OJ i?° \tia of J° F P°° c Qy mow. P caa� Q� c° ,`Q� eka Qt` 40 A f- i �� 0 0r he .a `� 59 L °c� 0��� 5 Asset Management Needs Assessment Memorandum 16 L BAP 0 1 -5 Yr Target o Current 4.2 Summary of Findings From the needs assessment, CCCSD's areas of strength and areas in need of improvement are identified. The main output of the needs assessment is the identification of the current state of asset management activities and areas that warrant further improvement. It is important to recognize that CCCSD is already undertaking asset management in many areas of the organization. To date, asset management plans have been developed for the Collection System, Force Mains, and the Treatment Plant. The needs assessment used for this project was undertaken at the organization level, using an approach where participants from multiple divisions were polled in workshops and interviews on asset management activities. Although some divisions in CCCSD would have ratings in areas that would fall in the upper "proficient" and "excellence" ranges are not reflected individually, because the ratings presented in this assessment are based on the overall AM practices of CCCSD. This memorandum is not intended to provide a scorecard for comparison of performance between CCCSD and other organizations. Areas of Strength The following areas where CCCSD is considered to be performing well include the following: Demand Analysis — CCCSD has more than 5 years of plant data. Title V air and water permits get QA/QC'd by the Plant Operation Division's regulatory group. The Planning group has a static hydraulic model for the Collection System that is being upgraded to a dynamic model for monitoring flows in the next wet season. The Environmental Services Division also projects the number of new connections. Knowledge of Assets (Collection Assets) — The asset register for linear assets seems to be sound. The assets are identified in the GIS system with established data standards. Collection System's tech services group is responsible for entering maintenance data into the CMMS. When new assets are added they go more through engineering support /GIS, then after some communication the CMMS gets updated with GIS info. Asset Management Information Systems — There is currently an IT Master Plan being developed, therefore an additional information systems assessment was not included as part of this process. However, it is noteworthy to highlight the GIS and GDI applications. The GIS database currently contains data for the collection system assets, and the records for plant assets are currently being developed. The GDI application is the interface for storing and linking asset specific information. Asset Management Needs Assessment Memorandum 17 Asset Creation and Acquisition - The Engineering Department has a Project Procedures Manual for projects from the preliminary design stage, the design process, the bid process, contract initiation process, and the contraction administration / construction inspection stages. The design / construct process includes input from the operations and maintenance staff to ensure the assets are operable and maintainable. Specifications for contractors are well defined and documented. Customer Information /Consultation — The Communications Services Group conducts internal /external surveys, all through print and internal /external newsletters. They are currently in the process of developing a customer survey, with the help of a consultant, which will be reviewed and approved by the Board of Directors. Weighing survey against stakeholder focus groups. Have annual demographic data. Customer survey may be complete by end of year. There are additional surveys for customers as a follow - up to call -outs for sewer backups, and surveys for feedback during construction projects. Marks are usually high. Training Programs — Cross - training is provided where applicable. Staff is encouraged to obtain licenses and certifications for self - development and career advancements. The Collections Division maintains a "yellow" book for staff training. Attitude & Culture —The attitude and culture of CCCSD staff was supportive of the asset management program. ca Asset Management Strategic Goal - CCCSD has made the Asset Management Program a part of the Strategic Plan in order to drive the asset management program. By making asset management a strategic goal, it shows the dedication and commitment in advancing its asset management practices. CCCSD is committed to improving its asset management program and has full support from the Board of Directors and General Manager. Areas of Improvement A number of areas of improvement have been identified. A brief summary of these improvement areas is listed below: Business Process Mapping — The business processes within CCCSD are limited or outdated. There is heavy reliance on self- managed work management processes. A lack of structured, organization -wide business processes for asset management to enable performance management and to promote continuous improvement. With the lack of documentation, the understanding of job duties and responsibilities can become unclear and business processes are not standardized. Asset Management Needs Assessment Memorandum 18 Business Risk Exposure (BRE) — Currently, CCCSD is not using a formal evaluation of business risk as part of its asset management decision - making process. Understanding Business Risk Exposure helps to prioritize available resources and budgets. Risk assessment enables differentiation among assets and prioritization according to the level of risk each asset represents to the organization. An organization should predict, quantify, and use the business risk exposure to make appropriate management decisions that will minimize risk across the asset portfolio. Business Case Evaluations (BCE) - Capital improvement projects are being generated with little consideration to the risk and priority to CCCSD. There is a formal evaluation process in place but it lacks the rigor in the decision making process. Incorporating standard protocols to measure the confidence level of a given project, estimating business risk exposure reduction for a given investment, utilizing life cycle costing to determine the lowest total cost of ownership, and developing rigorous project justifications (BCE's) all provide for improved quality of the overall CIP decision - making process. Asset Hierarchy— Although this is a work in progress, a high -level hierarchy is started for the entire District; however it is only built for the plant assets in Mainsaver using parent /child ID's. An asset hierarchy should contain a complete listing of assets, with the relationships to aggregate and rollup information on the asset portfolio. The information held against the asset hierarchy can then be aggregated to reflect assets, facilities, sub- systems, or the entire asset portfolio. Knowledge of Assets (Plant) — The assets identified in the CMMS system for CCCSD plant assets have no data standards established. There is little or no condition and performance data, or economic evaluation. Asset data standards provide the relationship between the data and the decisions made and identify data required for asset management. This provides a standard framework for data collection and data maintenance. Asset data standards should be established for every asset type and reflected in the CMMS. Valuation — Accounting tracks the aggregate value of projects to asset groups for depreciation purposes and capacity fee calculations. A systematic process for valuing individual CCCSD assets does not exist for the replacement of assets to project long- term funding requirements. Asset valuations are an integral part of asset management. The valuation process provides the organization with necessary asset knowledge to make sound managerial decisions and to prepare for regulatory and funding requirements. Apart from being a sound financial practice, asset valuation is a valuable management tool. It assists in determining future budgets and allocating costs, and provides measurements for performance. Asset Management Needs Assessment Memorandum 19 Operation and Maintenance Data - CCCSD currently only records staff time on maintenance work orders for collection system assets. The collection of time, parts, and equipment cost data is imperative for all assets. For all assets, develop a procedure for undertaking life cycle costing analysis to ensure consistency of approach and increase the efficiency of such analysis. r Failure Modes and Condition Assessment Protocol (Plant) — The management strategy of an asset can be optimized by understanding and identifying the failure mode of the asset. For example, it is not beneficial to perform condition assessment on an asset failing from capacity. CCCSD would like to start a pilot Reliability Centered Maintenance (RCM) program at the plant. As part of this pilot program, condition protocols need to be established. The purpose of developing a condition assessment protocol is to assist staff with a process for the ongoing determination of the physical condition of its infrastructure assets. Condition protocols provide an organized method that will produce a consistent, relevant and useful set of guidelines that can be used repeatedly for the development of an effective CIP and, Operations and Maintenance plans. As with any new process the organization structure should be evaluated as how to best support asset management, such as reliability engineering to conduct root cause analysis. Asset Management Information Systems — There is a current need to replace the CMMS for the Collection System since the current application (Accela) is no longer supported. Additionally, the new CMMS should be evaluated to consolidate all assets into one system (Accela, Mainsaver and a few random databases and spreadsheets). The CMMS for the treatment plant ( Mainsaver) is not user - friendly and has not been readily embraced by all levels of Maintenance staff. Currently data needed to manage assets resides in multiple information systems (e.g. GIS, GDI, CMMS, FIS, SCADA, CCTV). In order to allow the asset manager to extract required data from any system to support the asset management decision - making process, it is imperative to integrate all information systems. It is also noteworthy, that with the amount of data and the number of applications that CCCSD is utilizing, there is no database administrator. Contract Administration - The Engineering Department has a contract administration manual and typically uses in -house project managers, contract administration, and inspection staff. Project Managers have access to Microsoft Project for managing projects; however it is not consistently or uniformly used by Engineering staff. Knowledge Management— CCCSD has experienced a large turnover of staff in the last several years, with very few long -term senior or management level staff remaining. It is critical for CCCSD to develop a program for retaining the asset and organizational knowledge before additional retirements and departures occur. Asset Management Needs Assessment Memorandum 20 Life Cycle Asset Management Roles and Responsibilities — CCCSD has not formally established an asset management steering committee to help promote and implement the program. The forming of an asset management leadership role helps to build a solid foundation to construct the asset management program. There is a lack of understanding how the AM portion of staff roles links with others throughout the organization. Quick Starts Some "quick starts" have been identified that CCCSD may choose to implement in the shorter term. These improvements generally take no more than a 6 -12 month period to implement and provide immediate benefits to the organization. These "quick wins" are discussed below: Life Cycle Asset Management Roles and Responsibilities — CCCSD has drafted an asset management policy, however this policy has not been formally adopted nor has an asset management steering committee been established to help promote and implement the program. The forming of an asset management leadership role helps to build a solid foundation to construct the asset management program. There is a lack of understanding how the AM portion of staff roles links with others throughout the organization. Information Systems — CCCSD should move forward with the procurement of a replacement CMMS for the Collection System and potentially consolidate all CCCSD's assets into this one system. Asset Hierarchy and Data Standards — Continue with this work in progress as a priority. All other project improvements are dependent on a good framework. y Project/Program Management— There are currently four significant projects underway within CCCSD (Cost of Service Study, IT Master Plan, Asset Management Implementation Plan, and Succession Planning). In talking with staff, there seems to be some confusion and frustration as to the coordination of efforts. A Project Manager is assigned to each of the projects, however there is not a Program Manager assigned to coordinate these initiatives. A recommendation would be to assign a Program Manager to provide this coordination. The purpose of this AM Needs Assessment is to provide the basis for a road map and implementation plan which will eventually lead to the next production of the CCCSD's asset management plans. By developing a robust and substantiated asset management plan, CCCSD will improve asset knowledge, improve understanding of business risk exposure, develop a balanced CIP and operations expenditure plan, and have a more rigorous knowledge of future asset rehabilitation and replacement needs. Asset Management Needs Assessment Memorandum 21 Section 5: Next Steps This memorandum presents a set of recommendations and findings from the needs assessment process. This assessment will be used to develop the Implementation Plan. The methodology and recommended set of improvements will take CCCSD well down the path to changing the culture to one that is more focused on long -term sustainable infrastructure management. There are a number of considerations for CCCSD to take into account as the impact of implementing the improvement projects is considered. The journey of implementing asset management has been proven around the world to be a long -term venture; many will say a five to ten year process. Most organizations consider this a process of continuous improvement instead of a goal to fully meet all of the best practices in asset management since trying to achieve may them not be appropriate or cost - effective for the organization. Asset management is more common sense than it is rocket science. It is important for CCCSD to keep it simple, take a measured approach to implementation, and stay organized and focused on the long -term goal. Successful organizations focus on the relevant decision making processes that enable them to best manage their infrastructure portfolios, by starting with the simple approaches that over time lead to appropriately applied sophisticated approaches, where relevant. Asset management is ultimately about knowledge management and making the best management decisions for the long -term sustainability of the infrastructure. Asset Management Needs Assessment Memorandum 22