Sustainable Asset Management Pathway
The Sustainable Asset Management Pathway comprises 4 building
• Block 1 Asset Management Planning and Data
• Block 2 Service Levels and Risk
• Block 3 Expenditure Projections
• Block 4 Towards Sustainable Service Delivery
Block 1 - Asset Management Planning and Data
Block 1 takes members through five steps:
Step 1. Introduction to asset management planning
The first step on the sustainable service delivery system journey is to increase awareness and understanding of sustainable service delivery and asset management principles and practices.
Step 2. Establish corporate asset management team
The next step is to form a corporate asset management team. Sustainable delivery of services requires a whole of organisation approach.
Step 3. Review of asset register data
As the asset management planning process uses asset register data, it is essential that the data be as up to date and accurate as practical. This is a continuous improvement process.
Step 4. Commence asset management plan
The asset management plan template uses data from existing organisation strategic plans, management and operational plans, financial reports and the asset register.
Step 5. Maintaining the corporate approach
It is essential that the Council/Board be kept informed of the sustainable service delivery and asset management program goals and programs.
Block 2 - Service Levels and Risk
Block 2 covers two major inputs into the asset management plan, service levels and risks associated with providing services from infrastructure:
Step 6. Service Levels
Service levels are the link between community need satisfaction and costs of providing the service. Decisions to provide an increased level of service will require additional funding to provide the service in most cases.
Step 7. Infrastructure risk management plan
There are risks in providing service from infrastructure that may result in injury or death to people, loss of the service and increased costs. This step includes templates and guidelines to assist identify, evaluate & plan for risks.
Block 3 Expenditure Projections
Block 3 covers projections for new assets from growth, renewal modelling and expenditure projections:
Step 8. New assets from growth
New assets are constructed as part of development areas. They can be provided by the developer or constructed by Council. The sustainable asset management pathway templates and guidance are provided to estimate the value of these new assets.
Step 9. Renewal planning
This step takes an asset register and uses current replacement cost values and useful life estimates to estimate the cost to renew the asset and use online analysis to generate a draft 20 year renewal program.
Step 10. Expenditure projections
Expenditure estimates for the 20 year planning period are needed for operations, maintenance, planned capital renewals, capital upgrade and expansion and asset disposals.
Block 4 - Towards Sustainable Service Delivery
Step 11. Managing a funding gap
The shortfall in renewal expenditure is a result of a difference between forecast and planned renewals. The funding gap needs to be managed. Managing the gap is a continuous improvement process involving a number of options.
Step 12. Completing the asset management plan
The sustainable asset management pathway guides you through completion of the asset management plan drawing together your previous work and the draft renewal program.
Step 13. Improvement plan
The asset management planning process is one of continuous improvement. A tool is provided to assist in identifying and prioritising future work activities to improve the quality of the first asset management plan in subsequent updates and revisions.
Step 14. Links to long term financial plan
20 year expenditure projections generated by the sustainable asset management pathway online tools provide inputs into your organisations long term financial plan.
Step 15. Asset management policy
The implications of an asset management policy should now be understood. The AM knowledge base now available can form the basis for ongoing service delivery and asset management policy discussions and investment decisions.
Progress Review Checklist
A checklist is being developed to help you monitor and review your progress through the sustainable asset management pathway blocks. Tasks are listed for each Block and Step with date completed.