Toby Horstead Principal Manager Network & Asset Strategy

Asset Standards Authority

12 June 2014

Asset Assurance:

the whole of life approach

Scope of today

• The ASA & its Operational Environment

• Asset Management in TfNSW

• Asset Information & Life Cycle Costing

• Configuration and Assurance Gating

• Video

• Asset Management & the Supply Chain

• Future Collaboration

2

The ASA & its Operational

Environment

What is the ASA?

• ASA is an independent body within TfNSW

• Design authority for defined transport assets

• Technical authority for Asset Management

• Currently heavy rail - metropolitan, country and

North West Rail Link

• Working to expand coverage into Light Rail and

Ferry assets

• Dual reporting - DDG TPD and Secretary TfNSW

4

ASA within TfNSW

David Stewart

Secretary

Toby Horstead

5

NSW Transport Reform (Rail)

• 1 July 2013: new arrangements went live.

• RailCorp was restructured: – Sydney Trains and NSW Trains as operator maintainers.

– Residual RailCorp asset owner (subject to change).

• TfNSW as planner, procurer and Design Authority for assets

• ASA established to exercise Design Authority over all TfNSW heavy rail assets

• ASA to grant Authorised Engineering Organisation (AEO) status

6

Who is the ASA?

7

ASA organisation

8

What are the tasks?

Make it clearer, simpler and more attractive

to do business in NSW

• Allow supply chain to deliver safe asset services without

overly prescriptive and stifling supervision

• Improve access to broader competitive supply chain

through

• Maintain safety of asset systems and transport networks

• Place the customer at the centre of everything we do

9

Key functions

10

ASA’s organisational function

11

Heavy Rail asset highlights Metro

2,008 electric and diesel

fleet cars

1,604 km (approx) main

line track

Approx 83 route km of

tunnels

Approx 1,148 bridge

structures

376 stations (includes

country and Hunter line

stations)

92 traction sub-stations

and 68 sectioning huts

3,957 signals

6,831 track circuits

2,042 km optic fibre

2,500 km copper cable

More than 1,900 turnout

assets

Country rail

2,386 km track 1312 level crossings

(300 active)

984 bridge structures

NWRL

36 km track (incl. 13km

ECRL)

8 stations with platform

screen doors

30 km tunnels (15km

twin)

4 km viaduct

20 mass transit trains –

Phase1

SWRL

11.4 km track 2 stations 12

Working with RISSB

Rail Standards

• Working in concert with RISSB to align standard

development plans and ensure greatest benefit

and efficiencies

• Appropriate development of performance based

standards across the full asset life cycle

• ASA utilise peer review and consultation that

supports RISSB processes

• ASA performance based standards may be used

as draft for developing a national standard

A new procurement

paradigm

Authorisation update

• Two types of authorisation – Project and Direct

• Authorisations issued to date

– 15 project

– 8 organisational

• Authorisations in progress

• 103 organisations expressing interest

15

AEO status - Note

• AEO status does NOT cut across legislative and

regulatory boundaries

• AEO status does not guarantee work – normal

procurement/tendering processes apply

• AEO status does not take away from the normal

project management activities between Principal

and Contractor relating to the management of

scope and time

16

Asset Management in TfNSW

Asset lifecycle & asset

management • There are 4 different phases

• Each phase may be managed by a different TfNSW

Division

• Activities to be coordinated across Whole of Life

• We want to assure a legacy of assets over the whole of life

•18

A whole of life legacy…

19

A whole of life legacy…

20

For thought

21

SWRL

Whole of Life Benefits

• The Supply Chain is an active participant in

ensuring long-term industry growth

22

… result in

minimised cost

and risk here

that can …..

….increase

opportunity and

improve funding

here

Appropriately

considering Whole of

Life, integration and

addressing the business

objectives here…can

Asset Management Policy

• Effective Nov 2013

• Applies to all working for or on behalf of

TfNSW

• Applies whole of life management principles

and practices

23

Policy themes

• Whole of life approach

• Suitability and scalability

• Statutory and regulatory compliance

• Sustainable approach

• Continuous improvement

24

TfNSW Vision

• Provide a safe, reliable and integrated transport solution;

through

• Sustainable and collaborative management of assets

25

Asset Management in TfNSW

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Activity Description

Lifecycle alignment • Language

• Investment – assurance / config gating

• Communication - TfNSW

Asset Management

Framework

• Define approach

• Collate and connect processes and

procedures

Standards • Strategic and lifecycle approach

• Prioritisation and review

• Risk based and VFM

ASA activities

Whole of Life - consider

• Capital – install the latest and greatest?

• Integration – available time to build, system adjustment, compatibility

• Maintenance – has xing been protected, refurbish instead of renew

• But first, Operation – is the xover really needed, what is the criticality?

Facing TO

on a diamond Xover

28

Asset Information & Life Cycle

Costing

Angelo Koutsoukos, Manager Asset Stewardship

Asset life cycle & life cycle

costing

Life cycle costing across the

asset life cycle

Operational

Change

Significant

Configuration

Change

Asset Type

Approval

New Asset

Investment

Change in

System

Requirements

Change in

Maintenance

Requirements

Change in Asset

Strategy

Life cycle costing, why?

Life cycle costing, who?

• Service providers or project developers

performing asset management related services to

TfNSW, including their suppliers;

– When defining, designing, building, implementing,

commissioning, maintaining, integrating into the

operating network any new or altered assets or systems

• TfNSW Life Cycle Costing Standard T-MU-AM-01001-ST

mandates use of AS/NZS 4536:1999 – Life Cycle Costing –

Application Guide

• Provides applicability and specific considerations for TfNSW

TfNSW Asset Information

Management Standard

Information is a strategic asset that needs to be managed the same as a physical asset

Project Information

Asset Information

Ha

nd

ove

r

• Documentation

• Graphical Data

• Non Graphical Data

Information Build-up, Collaboration, Transition and Maintenance

Asset Information

- Static Data- Dynamic Data

Graphical & Non Graphical

Asset Register

Asset Data / Attributes Documents

-Unique IdLinear & Discrete

Asset Classifications (Class, Function, Type)

Linear & Discrete

Asset Information

- Static Data- Dynamic Data

Graphical & Non Graphical

Asset Register

Asset Data / Attributes Documents

-Unique IdLinear & Discrete

Asset Classifications (Class, Function, Type)

Linear & Discrete

• Consistent

definition and

framework of

asset structuring

and categorisation

• Create and

sustain the Asset

Register

Asset classifications

Assurance across the life cycle

Toby Horstead, Principal Manager Network & Asset Strategy

Assurance through the whole

asset lifecycle

• Positive declaration to give confidence, a promise

• Confidence or certainty in one’s abilities

• Story of what has been done to ensure right

asset/outcome is delivered

• Argument with evidence

37

WH&S Act 2011

22; Duties of persons conducting businesses or

undertakings that design plant, substances or

structures

(2) The designer must ensure, so far as is reasonably

practicable, that the plant, substance or structure is

designed to be without risks to the health and safety of

persons

(3) The designer must carry out, or arrange the carrying

out of, any calculations, analysis, testing or examination

that may be necessary for the performance of the duty

imposed by subsection (2)

38

Configuration & asset assurance

39

Plan

40

Assurance Strategy

• Scalable assurance process – what is the level of

impact?

• RAM requirements – level of RAM assurance

• Key risks and how they will be managed

• What are the key milestones and aligned

assurance deliverables

• Governance arrangements through the project

• Independent safety assessor

41

Basis of Safety Argument

• Optioneering complete and chosen solution specified

• Decisions may have significant impact on safety, reliability

and asset performance

• Assure that the correct asset is specified

– Integration to transport network

– Operational and maintenance concept

– Safety and RAM

– Risk based decision making

• Assurance and governance principles defined

• Key claims identified for developing safety argument

• AEO will then deliver assurance

42

What is an Assurance

Argument

• Story of what has been done to ensure the right asset is delivered

• Compelling argument supported by evidence that demonstrates the asset is fit for purpose

• Confirms assurance activities are integrated into engineering activities

• Aids development of a demonstrably SFAIRP outcome

• Is structured so that the key pillars of the argument are provided

• Demonstrates optimisation of risk

Acquire

44

Progressive Assurance

• Gaining increased confidence through lifecycle

• Governance across lifecycle – defining gateways and means of passing

• Managing risks associated with asset acceptance

• Understanding key risks

• Confirms assurance activities are integrated into engineering activities

• Independent Safety Assessment

• Aids development of a demonstrably SFAIRP outcome

45

Operate/Maintain

46

Tiered structure of CM

47

Video

Configuration & asset assurance

Hyatt

Walkway Quebec

Overpass

Millennium

Bridge

Asset Management & the

Supply Chain

Supply chain value

• Delivery team at each stage of the life cycle

should know the asset best

• Build a strong collective of asset stewardship

• Support TfNSW to enhance assets to

provide safe, resilient and sustainable

solutions

51

AEOs & asset management

• Asset management & the AEO framework:

– Principles incorporated into AEO model

– Engineering service disciplines contextualised

across the asset lifecycle phases

– Specific discipline for asset management

– Informed buyer / Informed supplier

52

Expectations – AEO activities

• Whole of Life approach

• Management of stakeholder activities

• Feedback from and coordinating delivery of

assets/services with end user

• Provision of engineering and safety assurance

argument - enable acceptance, commissioning

and operation

53

Critical success factors

• Challenging old systems and processes

• Collaborative understanding of required

assurance outcomes

• “Freedom of action” for supply chain

within constraints of regulatory and legal

obligations

• Communication within TfNSW and with

the supply chain

54

Do not forget Disposal

55

First of 24 Turnouts being removed at Ashfield June 2013

Do not forget Disposal

56

Take away points

• Whole of Life view is critical to Asset Management

• There is Whole of Life value for the supply chain

• TfNSW Asset Management Policy

• Lifecycle costing & Asset information

• Configuration Management and Asset Assurance early in the life cycle is key to success across the life cycle

• Industry has a significant role in Asset Management

• Future Collaboration

57

Industry engagement

58

The customer is at the

centre of everything we do