Asset Management – Culture Change for Effective and Efficient

Sewerage Service Delivery

Contents�Overview

�Roles & Responsibilities in Sewerage Asset Management in Malaysia

�Asset Management in IWK

�Application of Asset Risk Management in IWK

�Way Forward

�Conclusion: Benefits to IWK

•National Sewerage Company - wholly

owned by Minister of Finance Inc.

•Covering most of Peninsular Malaysia

(except Kelantan, Pasir Gudang & Johor

Bharu) & Labuan

•21 Unit Offices to Operate & Maintain

assets.

OverviewIWK Assets*•6,204 Public Sewage Treatment Plant•983 Network Pump Station•17,378 km Sewer Pipeline• over 60,000 equipments•21.7 million Population Equivalent (PE)

*Data as of December 2014

IWK Asset Related Services•Operate & maintain STPs & NPS (nearly 20 types of processes)• Provide Mechanical & Electrical Services for all the assets• Resolve all matter relating to Sewer Network Operational issues (blockage;overflow, etc)•Provide septic tank desludging services

• Provide policy direction

• Economic regulation

• Set KPI for SL

• Operate & Maintain the assetsin the most optimum manner

• Efficient capital worksprogram

• Minimise risks

• Focussed allocation ofresources.

• Transparent OPEX & CAPEXcosts.

• Owner of the assets

•Assess asset needs of SL

•Determine funding and procurement strategies

•Monitor the asset upkeep bySL

SPAN

Facility LicenseeService Licensee

Policy

& regulation

Asset provision

Sewerage services

Government

Capital Projects

Roles & Responsibilities in Sewerage Asset Management (WSIA Act)

In 2010 – IWK adopted PAS55:2008 as the basis of developingIWK’s Asset Management System.

BSI PAS 55 : 2008 defines Asset Management as:

Systematic and coordinated activities and practices through which and 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.

IWK’s business is very much centred on Physical

Infrastructure Assets

It is crucial for the physical assets to

be systematically managed – together

with the interfaces with human,

financial, information and intangible

assets.

Asset Management in IWK

•Priority to compile asset data

• Simple asset databases created to store

data.

• Hard copy drawings compiled

• Data verification done for accuracy

•Priority to compile asset data

• Simple asset databases created to store

data.

• Hard copy drawings compiled

• Data verification done for accuracy

• Asset Management Information Systems (AMIS)

• GIS

• Document Management Systems

• MMS

• Integrated GIS

• ERP System- IFS

• Asset Risk Management System (ARMS)

• Sewer Modelling

• In line with BSI PAS55 --- ISO 55000

•Effective management of assets through risk management

• Total Integrated System- SAP

Strategic Approach to Asset Management

FROM O&M TO ASSET

MANAGEMENT

PREVIOUS VISION

The overall business of the company will be driven by Asset Management in an aligned, systematic and transparent manner to achieve the company’s obj ectives and goals by optimizing the value of the

assets and by taking into consideration sustainabil ity principles.

Strategic Objectives not clear and visible. Efforts are uncoordinated

and not aligned.

Strategic Objectives are clear and holistic (taking into consideration the core business of the assets and future business potential).

Efforts are aligned and coordinated.

Issues Related to IWK’s Assets

PAS55 Gap Analysis

& Action Plans

PAS 55 GAP ANALYSIS

27 Action

Plans

27 Action

Plans

IWK Asset Management System

ENABLERS & CONTROLS

a)Structure Authority & Responsibility– Steering Committee & Risk Committee

b)Training Awareness & Competence – Competency Matrix

c)Communication – Asset Management Bulletin, AMP Poster, Change Management- visiting Unit Offices.

d)Information Management - AMIS, SAP, ARMS, LMS, COEDS,BRAINS, IGIS. Asset Data Model & System Data Map.

e)Risk Management – Framework and System

f)Legal - Regulation Register

g)Management of Change – Driven by AMU together with Steering Committee

APPLICATION OF ASSET MANAGEMENT IN IWK

Development of Asset Risk Management in IWK

A risk is something that may cause impact to our business

Transparent Decision MakingAsset Risk Management

� Criticality Scoring�Site Investigation� Past Incidences & Records

Sample Graphs

Significant asset risks in 30% of assets

Business Outcomes

RISK

RISK – Probability of an event/incident occurring that might affect any of the 8

business outcomes

ASSET RISK – resulting from the existing condition of the

asset

ASSET RISK – resulting from the existing condition of the

asset

OPERATIONAL RISK- resulting from the breakdowns in internal

procedures, people, systems and external threat.

OPERATIONAL RISK- resulting from the breakdowns in internal

procedures, people, systems and external threat.

CONTROLLED THROUGH:1) Funding- SCC/CAPEX/OPEX2) Policy3) Government Enforcement4) Technology Improvements

CONTROLLED THROUGH:1) Funding- SCC/CAPEX/OPEX2) Policy3) Government Enforcement4) Technology Improvements

CONTROLLED THROUGH:1) Internal Policy 2) Internal Funding3) Sufficient & Competent Staff4) Proper Facilities ( Lab , Instrumentation/

Tools)5) Proper Process Control ( SOP, System)6) Reliable Vendors & Contractors7) Proper IT support

CONTROLLED THROUGH:1) Internal Policy 2) Internal Funding3) Sufficient & Competent Staff4) Proper Facilities ( Lab , Instrumentation/

Tools)5) Proper Process Control ( SOP, System)6) Reliable Vendors & Contractors7) Proper IT support

Mitigated by asset improvement

Mitigated through operational improvements

Both Asset & Operational risks need to be addressed to ensure business outcomes. Asset and Operational risks are interrelated and af fect one another.

�Full impacts of the Asset Management System are yet to be realized asthis process is still in the infancy stages.

� Currently, risk management is giving a transparent view of the risk profile.

� Asset risk based management is already helping to allocate and prioritizeresources in the right areas.

�AMP is used currently being used as a basis of decision making.

� Continuing rollout of the Asset Management System - ensuressustainable, efficient and effective management of assets in the near future.

WAY FORWARD

The next action plans are to:

� Conduct continual review and monitoring - Asset Risk Management Workshop & Peer Review Panels.

� Development of Operational Risk Management

�Measure the effectiveness and relationship of CAPEX/OPEX strategies proposed in the AMP in reducing the risks and meeting the set asset management objectives.

�Develop benchmarks to balance CAPEX, OPEX costs, risk profile reduction and business.

• Better knowledge of assets, conditions, risk, performance & criticality

•Actions based on clear justifications•Operations & Maintenance and CAPEX aligned to business needs

•Minimise risk & impact of asset failures•Focussed allocation of resources•Transparency to Operating & CAPEX costs

•Safety•Compliances•Customer satisfaction•Cost effective service delivery •Enhanced Image• New working culture is currently being adapted

CONCLUSION: Benefits to IWK

RESULTSRESULTS

OUTCOMES

ACTIONS

KNOWLEDGEKNOWLEDGE

anusuyahs@iwk.com.myjohanl@iwk.com.my