Western Power – Transmission Asset Refurbishment and Intervention Program

Summary of the project, product, framework Due to a step change in the way Western Power (WP) collected, analysed and displayed our asset condition data it became very evident that we were faced with a looming crisis in the Transmission asset fleet based on the juxtaposition between asset age and condition. A replacement program to correct this would be economically prohibitive, and impractical based on time to execute and limited access to the transmission network. Instead, a more detailed and holistic approach was required, one that reduced risk by utilising all the tools in the asset management toolkit in conjunction. Description of project or framework addressing the assessment criteria Power Transformers In the space of a few weeks, through intensive cross functional and inter-departmental cooperation, the following list of actions was assembled; much of which is already passing into the planning and execution stages: Switchboards As in many other areas switchboard condition management is another area where asset performance is squeezed on between aging and deteriorating assets on one hand, and reduced availability of capital and increasing costs on the other. Western Power found itself in this situation when facing poor asset condition issues in CBD switchboards compounded by other spending priorities. Taking inspiration from utility industry practices adopted throughout the UK in the wake of RIIO-ED1 network price control published by industry regulator OFGEM, WP began scouring the market for alternatives to wholesale switchboard replacement that would meet our requirements in costs and time while restoring the assets resistance to failure to a new or near-new state. They quickly uncovered new information of methods and capabilities in the marketplace to replace and refurbish vital components within the switchboard, restoring it to a condition where it would be able to meet the rigours of ongoing operations, plus the added stresses of future network optimisation works. A cross functional team of all major engineering functions, as well as the execution functions was established, and within months had created the opportunity for a detailed inspection and review of the assets by the Original Equipment Manufacturer (OEM), and some of the technicians involved in manufacturing switchboards of this type. The result was a capability to refurbish these switchboards, increasing the cost effectiveness of our capital spending, reducing our risks of unplanned failure within a far shorter time and increasing the reach of limited capital funds. Opinion as to specific contribution made by the nominated individual/team/organisation The ripple effect from this is driving new ways of working throughout the organisation: General comments you may wish to add

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Western Power – Pole Top Fire Prediction Model

Summary of the project, product, framework Western Power’s (WP) Pole Top Fire Model combines an engineer’s view of risk on WP assets with the weather conditions that trigger pole top fires. WP Fault Crews are always available, but a spike in the number of incidents can put resources under pressure. Predicting the number and general location of pole top fires can help our scheduling team have enough crews ready, where and when they’re needed. This helps reduce risks to public safety and reliability of supply, without over resourcing fault crews. Description of project or framework addressing the assessment criteria Pole top fires are a major risk for electricity network operators but difficult to predict. Pole top fires usually occur on the 22kV or 33kV distribution network and, while rare, are considered high impact events. Pole top fires affect a tiny fraction of WP’s network each year, but occasionally cluster geographically and temporally. Outages following pole top fires tend to be long and require complex repairs. Further, due to the localised weather that contribute to the fires, one area can be affected by multiple fires and power restoration is further delayed. The cause of pole top fires is attributed to dust build up on insulators that leak current during misty rain, estimated to be a mere 0.2 mm of precipitation per hour. Typically, the insulators and cross-arms also have been impacted by normal wear and tear. Modelling of pole top fires has traditionally been for proactive maintenance – washing power lines and applying silicone to insulators. While these techniques can be effective, it is not long lasting. Anecdotal evidence showed some leading indicators for pole top fires, however a formal short-term forecast could allow for more fault crews to be available when needed. WP has existing risk models that evaluate the probability of asset failure for each asset on the network. These models leverage asset specific data to predict the long-term risk and are included in the new models to assist short-term prediction. In addition to the asset data, geospatial observations and short-term forecasts were acquired for weather and particulate pollution. Collectively, this information can be used to identify the level of pollution and moisture that will naturally fall or accumulate on the pole tops. A range of predictive modelling techniques were investigated using a fail-fast methodology. Random Forest, a popular machine learning technique, was chosen due to its ability to elegantly model complex non-linear relationships and the speed at which it trains. Historically Random Forests have had a reputation as a black-box technique, however key innovations in the last two years (particularly LIME and Partial Dependence plots) allow practitioners to explore the inner workings of the model in detail. The models are run every six hours through our enterprise automation system, with automatic alerts sent to staff when there are any heightened risks of fires. The output of the model is displayed in a dashboard that provides a visual representation of the day ahead view of risk, colour coded by region, and an hourly view of risk by region over the coming week. The interactive nature of the dashboard allows our crews and scheduling teams to engage with and explore the output of the models. The dashboard includes a historic view of forecast risk and observed fire events, this page is crucial to the acceptance of the model by the business as it provides rapid feedback on how well the model has been performing. Inspiration came in mid-2017 following a day of multiple pole top fires that affected the Perth Metro area. WP Executive Manager, Seán McGoldrick, made the comment, “if only we could have known, we would have been ready.” Peter Condon developed the first iteration of the model using the 950 feeders across Western Power’s network as natural grouping based on network topology. The feeders were then aggregated to the nearest of 38 weather stations that offer sufficient historic observations and forecasts. Air quality data from the Department of Water and Environmental Regulation was also overlayed to identify regions that may be impacted by recent dry conditions. Within a few days of launching, the model predicted a spike in pole top fire risks over an upcoming weekend. By Monday, a series of localised pole top fires had started and demonstrated that the model worked! Most pole top fires occur between December and March, so Peter could make several iterations to the data inputs in the model over the summer period and has seen the reliability of forecasts improve. In May 2018, far outside of the season in which we typically see pole top fires, there was a spate of pole top fires in the mid-West, which was successfully predicted by Peter’s model. The model is already driving change within Western Power. Crews are mobilised when the model predicts an increased likelihood of fires and outages duration has been improved following these incidents. One year after Peter was inspired to develop a model that could predict pole top fires, there are multiple fully automated independent models being scored each day with a single ‘champion’ model selected in November 2018 to see Western Power through the 2018/19 summer. Opinion as to specific contribution made by the nominated individual/team/organisation Perth’s desirable climate creates a perfect storm for pole top fires – and the ideal place to be able to test and trial the predictive model. The model is quickly becoming a valuable asset to ensure appropriate staffing of field crews and to minimize the impact of redeployment and cancellation of planned work. Western Power has already benefitted financially from the development of this innovative model. Pole top fires affect electricity networks around the globe and Peter’s model is well placed to be able to improve the safety and reliability of these networks. Identifying the performance of specific network assets and its impact on pole top fires offers other networks unique insight to their networks and has potential to drive investments and maintenance plans. It goes far beyond just a technical

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Western Power – Asset Information Driven Risk Modelling and Visualisation

Summary of the project, product, framework Asset information driven risk modelling & visualisation was enhanced in two ways; firstly, inspection and failure data were used to develop information-based survival curves for wood pole assets; and secondly, data visualisation dashboards were developed using Qlik to enable asset managers to respond to queries in minutes rather than days. Description of project or framework addressing the assessment criteria Wood pole survival curves Western Power’s network has a wide variety of wood pole species in its network, each presenting its own challenges with respect to asset condition monitoring, ageing phenomenon, failure modes and consequences from their performance.  As a part of this project a cross functional team of data analytics, wood experts and asset management practitioners developed survival asset models that were then put to use for asset management decision making and investment planning/ prioritisation. Benefits: Application: Quantification: Asset information visualisation An example of how we used to derive information from data was when the Energy Minister requested how many assets required treatment in his electorate. Just a few years ago, Western Power Asset Managers requested data extracts on Asset Information from the Data Management Team which would require 2 days turn to receive data (Excel or Access) and then take another 1-2 days to analyse and respond. The elapsed time to respond was generally one to one and a half weeks. This was subsequently improved via the development of “Information Packs”, a complex Access database and excel spreadsheet built for each asset class. This reduced query response times down to approx. 3 days and 1-2 days effort (but data could be 12mths old).  Our most recent advance in this evolutionary process is the development of an Asset Management Data Warehouse and data visualisation tool (Qlik) which enables asset managers to respond to queries with less than 5mins effort and under 30mins of elapsed time. The data is snapshotted monthly or if required could be amended to daily if required. And we know the accuracy and provenance of the information as it has originated from corporate systems, not the customised query scripting (data extract) as was the case previously. Opinion as to specific contribution made by the nominated individual/team/organisation In the space of just 5 years Western Power has evolved its asset information driven risk modelling & visualisation from being capable of:

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V/Line – Asset Management Supply Chain Transformation

Contents Topic Page 1 Executive Summary 3 2 The Transformation 4 3 Contributions to the Organisation 6 4 Final Comments 7 5 Appendix A – Inventory Item Label Example 8 6 Appendix B – Screenshot of WMS on Handheld Scanner 9 7 Appendix C – Front Page Excerpt of WMS Work Instruction 10 8 Appendix D1 – Snap shot of Inventory management standard 11 9 Appendix D2 – Before and After of Audible Track Warning Signals Policy 12 10 Appendix E – Screenshot of ServiceNow Ticketing System 13 11 Appendix F – Logistics Alert Weld Kits Expiry 14 12 Appendix G – Rotables and Repairs spares examples 15 13 Appendix H – Jobs Completed in ServiceNow by Month 16 14 Appendix I – GS1 Standards Adoption Impact Assessment 17 Executive Summary V/Line is Australia’s largest regional public transport operator. V/Line manages assets throughout their lifecycle by performing asset management activities classified as either Routine or Major Periodic Maintenance administered by V/Line’s Asset Management Group. V/Line’s Asset Management Group had a basic internal Logistics support function, responsible for project and maintenance materials activities. A Gap analysis was conducted, and Executive management identified poor performance within the Logistics group that did not align with the financial and operational requirements of the business. A new manager was appointed to resolve the issues within this group, which resulted in the positive transformation outlined in this submission. The Transformation A review of findings from mid-2015 the VAGO report showed that numerous issues with inventory management were evident with an “indicative finding of weakened inventory management”.  The report identified issues when testing year-end inventory balance with sample counts, pointing to inaccurate stock counts. Several strategies were developed that would address the major problems in the V/Line Asset Management Logistics group. These included a workforce plan for the required structure of roles within the Logistics group to meet functional requirements, establishing Cycle counts at Maintenance depots, the adoption of standardised labelling and barcoding, the implementation of a Warehouse Management System, development of Inventory Management policy documents and the establishment of Rotables and Repairs capability. A workforce plan was developed as part of the 36-month strategic plan and started with the introduction of three new Inventory Controller positions, an Inventory Manager position, and an Inventory Support Officer position. Visits to other rail operators within Victoria were also conducted and allowed the Logistics group to see best practices in the industry. One of these was Inventory cycle counts performed on a regular basis. A cycle count program was established to perform count all Maintenance Depots around the state every quarter based on an established selection criteria of ABC analysis. Cycle count reporting was also developed to capture inventory accuracy, variances and provided a platform for feedback and continuous improvement opportunities. In addition, a Logistics mailbox was established as a central point of contact to streamline communications from network maintainers around the state. The next stage involved the adoption of standardised labelling and barcoding for identification of Inventory items. This involved several workshops with key stakeholders to develop labels requirements and standards. Once a design for the Inventory labels was finalised (see Appendix A), first phase of labelling across the state commenced. The Logistics group also engaged subject matter experts with significant industry experience to identify complex inventory assets such as turnouts, crossings and points. A strategic action plan was developed by the Logistics group to roll out the inventory labelling over a 3 month period. Adoption of GS1 barcoding system enabled us to fast track inventory and improve maintenance operations. Implementation of the standards also laid the foundation for establishing seamless digital systems and a streamlined approach towards managing our inventory master data and supplier’s information. Inventory Management capability was further enhanced with the implementation of a Warehouse Management System (WMS) integrating to V/Line’s ERP system. A key requirement is to support GS1 barcode standards and scanning. A trial run was set up to operate within the V/Line’s main Logistics depot. Warehouse workflows were optimized with the introduction of handheld devices which had the ability to scan 2D barcodes on the inventory labels (see Appendix B). Customised WMS documentation for logistics group was developed to train the wider team members on various functions.  (see Appendix C). A detailed review of outdated policy documents in V/Line’s Document Management system has taken place. A suite of high level inventory management policies and procedures were created. As an example, Inventory management policy was developed to define requirements for inventory management within the Asset Management group in support of maintenance and project work (see Appendix D1). Other critical document that was reviewed was the ‘Audible Track Warning Signals (ATWS) materials standard which documented the procurement, storage, transportation, and disposal procedures of these materials. Review identified that the document referenced an outdated location where the ATWS were to be taken for disposal. It also placed responsibility for ATWS disposal on a position that no longer existed. As ATWS are classed as an explosive, it left a severe safety risk on how these materials were disposed. A collaborative review with V/Line’s Safety team concluded that ATWS were to be taken to the V/Line Logistics Depot for organizing safe disposal, with responsibility for disposal placed on the Logistics Coordinator (see Appendix D2). One of the major challenges that logistics group faced during transformation was the overflow of different inventory requests impending to the central logistics mailbox. Manual management of these service requests and customer feedback over completion of requests was a very slow and time consuming process. Series of workshops with key stakeholders in IT, internal customers and logistics group led to the innovative adoption of an online ticketing system called ServiceNow. (see Appendix E). This ticketing system allowed the Logistics group to record and track requests and provide constant updates. Survey tool was also setup to measure the service level on selected requests.   Communication with the other departments in V/Line was a vital component when improving inventory management practices. A method of communication

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Transport for NSW – Asset Maintenance Assurance Framework

Executive Summary Transport for NSW (TfNSW) owns and manages over $145bn portfolio of assets, with a primary focus to deliver safe, reliable, and integrated transport services.  In order to meet organisational objectives and growing service demands, TfNSW engages over 750 Service Providers to operate and maintain (O&M) assets over the life cycle. Transport set a journey to create an effective assurance capability across the cluster. It initiated this by: The framework was developed in 2016 and signed into operation in 2017. Context As an asset owner, TfNSW has a legal obligation to understand and manage its risk profile around the configuration, integrity and safe operation of its assets. TfNSW role is to assure that it has contracted the right partner, with the right competencies and systems and that they are being effectively implemented resulting in effective operational delivery and attaining the full asset life cycle. These activities are completed in alignment with ISO 55000. Contract periods tend to be much shorter than the asset lifecycles, giving rise to the temptation of sweating an asset for a greater return in a contract period, but shortening its planned full term life.  With an asset portfolio as large and diverse as TfNSW, errors are a certainty of operation. TfNSW focus is on working with O&Ms to make sure errors do not become mistakes by recognizing and managing systemic issues before they become preventable mistakes.  The processes are part of assurance function across the TfNSW asset life cycle (figure 1). Figure 1: Assurance gateways across the asset life cycle Asset Maintenance Assurance Framework Transport for New South Wales is one of the largest asset owners in Australia. Moving towards an outsourced delivery model for its transport operations, TfNSW needed to establish an architecture that arranged assurance activities through the life of an asset and also through the life of a contract, which could be two very different periods. The key trigger for this was the understanding that, whilst the operation and maintenance of assets could be outsourced, the risk, safety and legal obligations of an asset owner could not. In short TfNSW needed to be an engaged asset owner, with an understanding of the integrity of its assets. The TfNSW Asset Maintenance Assurance Framework describes how TfNSW assures itself that assets are maintained and managed to deliver service outcomes and assets continue to meet the required asset performance targets TfNSW also needs to assure itself that the assets remain fit for purpose and sustainable over the asset lifecycle. TfNSW has developed a structure across the asset life cycle ensure assurance is performed (figure 2). The implementation of asset maintenance assurance framework is in alignment with ISO 55000 series standards. The process to develop the framework and continued development is aligned with asset management best practice outcomes: 1) The framework aligns with the TfNSW Asset Management Policy and Asset Management Framework 2) The framework and its associated processes for assurance are applicable across all life cycle stages 3) The process following the framework includes rigorous assurance activities including but not limited to reporting, internal audits and revision of  performance KPIs. 4) The framework specifies the necessary resources and competent personnel for demonstration of assurance, by undertaking asset management activities and operating the asset management Figure 2: Maintenance Assurance Structure activities Ingenuity of solution Prior to the implementation of the maintenance assurance framework the assurance activities were completed by the service providers and adhoc audits were performed by TfNSW. The approach for a consistent assurance framework and corresponding standards available to service providers now aligns goals across the organization. There was no consistent framework for contractors, Operators and Maintainers or internal TfNSW representatives to assess the state of assets.  TfNSW recognised that this resulted in two main issues: 1) Lack of understanding of the state of TfNSW assets 2) Risks yet to be articulated by O&Ms. The project implementation and continue improvement is a pivotal piece in the organisations primary focus to deliver safe, reliable, and integrated transport services Review and Performance Measures TfNSW realised a need for monitoring the performance of assets on the network. In December 2017, TfNSW published a The Transport Service Provider Asset Management Reporting Standard. The standard aims to monitor the agreed deliverables and effectiveness of asset management within the various contracted O&Ms – this includes measure assurance on asset condition and performance to meet service outcomes. Further, the standard supports a consistent approach to asset reporting across Transport modes to apply appropriate investment decisions across the cluster to manage risk. It is essential that Service Providers are able to demonstrate that assets are managed effectively and that those assets support TfNSW (the Client) short and long-term service outcomes. This reporting function is a critical part of the TfNSW asset management and maintenance assurance framework to give confidence that assets remain sustainable and expenditure is efficient and effective. Benefit/Value of the project to the organisation In alignment with ISO 55000 services the benefits of the framework span across the organization and to cover 750 contracted operations and maintenance contractors. The benefits of asset management can include, but are not limited to the following: The audits and assessments performed as part of assurance activities on various modes allowed for a strategic view across O&Ms that maintained the same/similar assets. E.g. identification of risks and issues associated with bridges along with lessons learnt could be adopted by 4 difference O&Ms.  This exercise proved to be efficient in identifying a root cause in one issue and implementing initiatives for mitigation/control across multiple modes (heavy rail, light rail, metro, bus, roads and ferry). With over 750 contracts, the lessons learnt approach proved to be greatly beneficial in better maintenance strategies of long-term whole-of-life planning approach for both O&Ms and TfNSW. Program Management and Risk Based Approach The project management of the framework was a collaborative approach amongst multiple TfNSW teams and Operators and Maintainers. Initial identification of asset maintenance assurance requirements requirements referenced ISO 55001, the NSW Treasury Total Asset Management Requirements, the GFMAM

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TransGrid – Asset Excellence Program

1. Executive Summary TransGrid’s Vision is to become leading edge asset managers setting the benchmark for asset management practice and performance. This will build upon the strong baseline established with our ISO 55001 Certified Asset Management System. TransGrid has progressed an Asset Management Excellence program to improve on the established baseline. The design of this program has used an innovative approach which included: This structured approach to excellence has defined and delivered a range of initiatives in capability, asset information, management system integration, asset planning processes and management review. 2. Description of Project TransGrid’s Vision for Asset Management is to become leading edge asset managers setting the benchmark for asset management practice and performance nationally and internationally. Our multi-year journey has seen us maintain our certification against ISO 55001 in November 2017, creating a strong baseline of good asset management practice. To move forward to greater maturity levels, TransGrid has progressed an Asset Management Excellence program to improve on the established baseline. The design of this program has used an innovative approach which included: 2.1  Program Methodology 2.1.1 Maturity Assessments The maturity results from the 2017 Asset Management System recertification audit were a key input to the review of the AM Planning process. The maturity chart below shows a general improvement across all areas from the certification audit in 2014. Three areas were identified as targets for improvement during 2018: Figure 1 – Asset Management maturity against ISO clause These planning elements were selected as focussed improvement areas where considerable value versus effort was expected. As part of the journey towards excellence TransGrid has commenced utilising a 39 category model as detailed in the ‘The Asset Management Landscape (2nd Edition) – Global Forum on Maintenance and Asset Management’. An external advisor has reviewed TransGrid against this benchmark with the results shown in the following diagram. This analysis has assisted in being able to more specifically identify the processes for improvement. Figure 2 – Asset Management Maturity against GFMAM (yellow line) 2.2  Key Improvements 2.2.1 Asset Management Capability TransGrid’s certifier identified Asset Management competency as an area for improvement. While it has strong competency management for construction, operations, and technical skills for field personnel it did not have a structured framework for managing Asset Management competencies beyond the requirements listed in an employee’s position description. In order to close this gap TransGrid engaged external advisors to develop an Asset Management Competency Guideline. A draft guideline was provided based upon the Institutes of Asset Management’s (IAM) Capability Framework. This identified competences into 7 groups containing a total of 28 identified capabilities. TransGrid developed the draft into an approved document by refining the mapping in the draft and using it to assess, at the employee level, an individual’s actual capability against what the requirements of the role were. The results of this allowed gaps to be identified that can be used in the individual employee’s development plan. This work was in the early stages of rollout when in early 2018 a corporate initiative was initiated from the board to review capability management across the entire organisation. As part of this initiative the Asset Management Competency framework was embedded into the corporate program to maintain alignment to the IAM Capability Framework. This included the development of an on-line assessment of capability against this revision using an 180o assessment methodology. This online tool allows the AM competency requirements to be included with other technical competencies (engineering, financial etc) so that the development of AM capability is seen as part of business as usual. TransGrid’s certifier has confirmed that this work has fully addressed their areas of concern. 2.2.2 Asset Management Information TransGrid’s 2014 ISO55001 certification identified Asset Management information as an area for improvement and this has been an ongoing focus throughout the first certification period. The last remaining improvement identified in our Asset Management System certification is related to its Asset Management Information Strategy. The fundamental issue was to refocus this strategy on information used in asset management decisions rather than that on asset information systems. TransGrid has commenced a process in 2018 to completely revise the current Asset Management Information Strategy. The objective of this process is to create a strategy focused on identification of an Asset Manager’s information requirements in a top down approach based on answering the core questions and sub-questions that an Asset Manager asks. This review was based on the following good practice guidelines. The revision of the strategy based on asset management information has a goal of ensuring that clear information requirements can be communicated to information systems related projects and ensure the outcomes of these will result in improvement to asset management outcomes. TransGrid’s certifier has reviewed the proposed changes in the November 2017 surveillance audit and indicated that this body of work is moving the Asset Management Information Strategy to be a much more mature and effective document. Figure 3 – Asset Management Information Requirements 2.2.3 Managing Integration of Multiple Systems TransGrid, either through licence, regulation, or good business practice requirements, holds a number of related management systems for Electrical Network Safety, Asset Management, Health and Safety, Environment, and Business Management. These systems have overlapping requirements in terms of frameworks, processes and procedures. TransGrid performed a mapping exercise of the functions that make up the ENSMS to provide the visibility of overlaps and interrelationships between the processes and procedures that make up the ENSMS and AMS. This resulted in the reduction of duplication and auditing effort for its Asset Management and Electricity Network Safety Management Systems. This mapping has allowed TransGrid to clearly articulate the system that is responsible for managing a particular process or procedure to internal stakeholders and external auditors. Reduced on-site interview and evidence effort for the formal audit of its NSW ENSMS from the support by ISO55001 recertification, and ability to combine audits requirements of the Victorian and NSW regulators are examples of practical value obtained through this mapping. Figure 4 – Management System Process Integration Summary 2.2.4  Revision to Asset Management Planning Process and Data Analytics  TransGrid is

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TransGrid – Planning the Energy System of the Future

1. Executive Summary Australia is embarking on the largest transformation of the power system since it was established mid-last century. The forecast retirement of existing generation, together with significant reductions in the cost of new renewable generation is driving the transition to the energy system of the future. To support this TransGrid has taken stakeholder engagement and applied asset management principles to complete its Annual Planning Review to highlight future opportunities for the Transmission System. This review has identified projects that will realise social benefits through lower energy prices, underpin regional economic growth and ensure continued supply security. The environmental benefits include the increased uptake of renewable energy. 2. Description of Project TransGrid is the manager and operator of the New South Wales (NSW) high voltage electricity network. Our network is the backbone of the National Electricity Market (NEM) which encompasses five interconnected regions: NSW, Queensland, Victoria, Tasmania and South Australia.  Figure 1: TransGrid’s Transmission Network in Context We aim to create value for society and our shareholders through a safe and reliable network at the lowest cost to customers. With transmission services accounting for around 3 per cent of the average electricity bill, we recognise that the way we manage our business has a direct impact on customers every day. Our responsibility traverses the full asset lifecycle, from planning new assets to replacing or disposing of existing ones. The body of work outlined in this paper focusses on the planning and assessment of new assets in a manner that applies good asset management practice. It considers the key stakeholder and business requirements, the environmental and social impacts on the community and the impact of planning decisions across the lifecycle. 2.1 Overview of Key Challenges Retirement of Aging Coal Fires Power Stations Across the NEM, approximately 10,000 –15,000 mega watts (MW) of coal fired generation is anticipated to be decommissioned over the next 20 years. In NSW, over 1,700MW of coal fired generation has already retired and a further 8,000MW is scheduled to retire by 2036. To put these numbers in context, the total peak operational demand for the state of NSW in 2018 was approximately 13,000 MW. Changing in Generation Technology The current transformation is also unique in that a significant shift in generation technology economics are driving the replacement of retiring thermal generation with more cost-effective renewable energy sources. Figure 3 shows the projected shift toward renewables in the NEM under the Australian Energy Market Operator’s (AEMO’s) neutral forecast scenario. Figure 2: Projected NEM Installed Capacity under Neutral Case (AEMO ISP 2018; Page 38) 2.2 Overall Approach to Project Lifecycle Planning TransGrid’s asset management strategy is focussed on the key business outcomes of: The asset management objectives that support this are: The planning framework (as outlined in Figure 3) has been put in place to facilitate the development of new generation and resolve relevant grid technical challenges so that consumer demand can continue to be met, with reliable and secure electricity at the lowest cost. This planning framework enables TransGrid to develop and assess options to best meet the asset management objectives. Figure 3: Network Planning Horizons In determining the viability of the options identified in the planning process the economic benefit (including both capital and operating over the life of the asset) to consumers of each option is fully quantified. 2.3  Summary of Key Deliverables 2.3.1 Development of Renewable Energy Zones (REZs) TransGrid has proactively identified regions best suited for renewable energy development. These Renewable Energy Zones (REZs) require extension or augmentation of existing transmission networks to connect them. The establishment of REZs (as shown in Figure 4) signals to renewable energy developers locations where renewable projects can be supported with adequate network capacity, enabling timely connections, and unconstrained energy dispatch. In the development of the REZs, analysis led by TransGrid in collaboration with specialist experts considered: Figure 4: Identification of NSW REZs 2.4 Potential Transmission Network Development In considering future network augmentation, TransGrid has also investigated and developed the options around increasing the level of system interconnection, both within NSW and with other NEM regions. The opportunity to route additional transmission pathways through REZs leverage geographic diversity and promotes inter-region competition and sharing of energy services. It is the most cost-effective approach for integrating and aggregating large scale intermittent renewable energy whilst maintaining energy security, as confirmed by the International Energy Agency. The most significant potential transmission projects identified are: Figure 5: Potential Transmission Developments (source AEMO’s Integrated System Plan) 2.4.1 Contribution to Industry and Government Bodies TransGrid’s Annual Planning Review has seen the organisation become a major contributor to industry initiatives designed to provide a roadmap for the energy transformation. The outcomes of the work have been: 2.4.2 Consumer Engagement TransGrid regards proactive engagement with customers, stakeholders and energy consumers as an essential component of business as usual. As a network service provider operating in the NEM, TransGrid’s prescribed expenditure and revenue is regulated by the AER. Significant investments such as those identified are subject to a formal and public process of scrutiny through the Regulatory Investment Test – Transmission (RIT-T) prior to being committed. Key parts of the RIT-T process include: TransGrid will manage this process to ensure that the project concepts developed during the annual planning process are fully considered by relevant stakeholders. 2.5 Benefits and Outcomes to the Community and Australian Economy A well managed transmission network is the platform that can enable Australia’s transition to cheaper, cleaner energy sources. The deliverables from the complete view of future grid requirements in the Annual Planning Review will allow public scrutiny to ensure the most appropriate long-term investment decisions are made. While investment will not be committed until the appropriate regulatory and customer engagement and scrutiny has been completed, the planning review process has highlighted the following significant environmental and social benefits. Unlock Lower Energy Costs for Consumers Independent analysis was commissioned by TransGrid to determine the optimal outcome for NSW on minimising total system cost. This study identified that the renewable energy zones will deliver 8% lower system costs compared to a

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TransGrid – Driving Diversity in Asset Management

1. Executive Summary TransGrid is an asset management business connecting generators, distributors and major end users to the electricity they need when they need it. Our traditional asset-facing workforce is transforming in age, gender, ethnicity and skills. We aspire to continually evolve into a highly engaged and capable workforce reflecting the diversity and expectations of the customers and communities we serve. Expanding on TransGrid’s Asset Management video, the delivery of our Board endorsed Diversity and Inclusion Strategy (Figure 1) empowers us to attract the best talent in all our asset management activities. The Diversity and Inclusion Strategy initiatives have significantly influenced and framed our asset management capabilities and activities, where the diverse communities and TransGrid are benefactors. 2. Diversity and Inclusion Strategy The strategy was developed and endorsed by the Board in 2017 and implementation began in January 2018. The strategy is targeted at promoting a change in TransGrid’s culture, where diversity in race, gender, sexuality, age, skills and experience lays the foundation for an inclusive culture. The Board is invested in TransGrid achieving the benefits from the implementation of strategic initiatives by means of quarterly reporting. This paper identifies specific value-add initiatives in promoting a diverse and inclusive asset management community in TransGrid (Sections 3, 4 and 5).   Support for the strategy is driven from the CEO, Executive and Senior Leadership Teams (ELT and SLT) and Managers, as demonstrated by the following examples: 3. Implementation of the Strategy The key initiatives for each pillar presented below were taken from the 28 Diversity and Inclusion strategic initiatives. These initiatives were selected as the most relevant examples of the total activities undertaken. These demonstrates the comprehensive work to promote the value of diversity and inclusion in TransGrid’s asset management community and the broader community. 4. Innovative Initiatives We identify the below initiatives as innovative to TransGrid as they are instrumental in creating changes in the attitudes of TransGrid’s asset management community on: Review of legacy facilities across the network The targeted approach to introducing gender diversity in our apprenticeship program and hiring women apprentice has resulted in the upgrade of ablution facilities across TransGrid’s electricity network. This was identified as an institutional blocker to equality in TransGrid. Work has begun to update signage, fit external doors with locks to protect the safety of female field staff, and provide sanitary waste bins where not available.   Envisage your future In 2017, we celebrated the careers and achievements of staff that have been with TransGrid for 25 years or more by organising a celebratory Recognition Dinner. To continue showing support to the dedicated staff in the latter stage of their career, we are introducing Envisage – Transition to Retirement workshops and seminars in 2019. This program is designed to support staff in planning for a positive and productive late career and future retirement. Envisage aims to realise the following for the participants:  Provide a structured framework to consider career and retirement options.Being empowered to make positive changes in the areas of money, career, health and relationships.Setting goals and identifying actions to create the future you envisage.   Interaction of Reconciliation Action Plan (RAP) and our network TransGrid’s Board, CEO and Executives are deeply committed to Reconciliation through the creation of the RAP Committee and Reflect RAP. The Committee is diverse in age, race, ethnicity, skills, experience and tenure at TransGrid (Figure 2). One of the initiatives of the RAP Committee is a body of work mapping our transmission line network’s footprint to Indigenous languages and land (Figure 3). This is to raise awareness of our impact on Indigenous land during operations. Consequently, these Indigenous initiatives are our contribution to the Indigenous community as key players in helping reconcile our nation: Provided grants as part of our Community Partnerships Program for funding local community initiatives, such as the grant for Yass Valley Council to help establish the Oak Hill Aboriginal Place Scarred Trees Interpretative Display Area. The project involved the protection and conservation of three Aboriginal Scarred Trees. Oak Hill is an area of special significance for the Ngunnawal people of the Yass Valley.  Provided a day of leave each year during NAIDOC Week for Aboriginal and Torres Strait Islander employees.Targeting of ATSI candidates for apprenticeships, where 25% of apprentices hired this year are ATSI. An Indigenous apprenticeship mentoring service provider is made available for the successful ATSI apprentices.   CEO Associate Program The CEO of TransGrid, Paul Italiano, has introduced the CEO Associate Program, which supports and promotes diversity in the Executive and Senior Leadership Team. One high potential female employee is chosen to shadow the CEO for 12 months. The aim is to “help develop emerging leaders in TransGrid through executive mentoring and opportunities to participate in and review a broad range of strategic issues” – TransGrid CEO. The experience from a program alumni was described as: “It has been an absolute privilege to learn from someone who has such a distinguished career and who wants to drive TransGrid forward. I have learnt a lot about the Executive decisions making process, which is something I will take with me throughout my career” – 2017 Alumni. The program is in its third year with participants from a range of business areas including asset management, commercial, and regulatory business units.  Figure 2 TransGrid’s Reconciliation Action Plan Committee Figure 3 Aboriginal Languages in NSW overlayed with TransGrid’s network 5. Benefits of Diversity and Inclusion Strategy The benefits of successful implementation of the strategy in the first year of implementation to asset management are: External stakeholders are: Figure 4 TransGrid’s 2019 Graduate Program Figure 5 TransGrid celebrating cultural diversity 6. Sustaining diversity change and benefits We are committed to developing a comprehensive approach to gaining benefits from a more diverse and inclusive workplace. We believe a diverse workforce and inclusive culture will enable us to: Creating and maintaining a highly engaged TransGrid workforce indefinitely into the future, will influence TransGrid’s success in achieving a diverse and inclusive workplace, and guarantee the above benefits are realised. TransGrid recognises that a diverse

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TransGrid – Integrated Asset Management Planning

1. Executive Summary TransGrid is committed to providing value to the community through investment in a safe, secure network enabling a stable market at the lowest cost to our customers. Our success criteria is demonstrating that the Asset Management Planning processes deliver this commitment; essentially that they are optimising cost risk and performance. To enable this TransGrid has completed an end to end review of the Asset Management Planning process to better define the inputs, required outputs and gaps in the existing process. This has resulted in significant improvements in process definition and awareness, alignment, asset information and supporting systems. 2. Description of Project This project is one of the core capability initiatives that has been delivered through an Asset Management Excellence program to support managing the fundamentals of asset management – Cost / Risk / Performance. 2.1 Key Challenges The Asset Management Planning process incorporates all asset facing activities and expenditure related to new assets, replacement assets, routine and corrective maintenance. It derives the most significant capital and operating expenditures of the business, contributing around $200M capital and $60M operating expenses each year. The resulting plan of work has a direct influence on all of the objectives of the business. The stakeholder analysis in TransGrid’s Strategic Asset Management Plan identifies the core stakeholder needs that must be balanced: Figure 1: TransGrid’s Stakeholders 2.2  Gap Analysis The following elements of best practise asset management were used to review the AM Planning Process for potential gaps. 2.2.1 Stakeholder Feedback Australian Energy Regulator (AER) The AER issued its five year determination of TransGrid’s revenue in early 2018. Feedback throughout this process indicated the key challenge for the acceptance of the proposed capital program was a clear articulation of the benefits, both economic and safety. This is particularly the case where any increase in expenditure out of line with long term trends was proposed. NSW Independent Pricing and Regulatory Tribunal (IPART) IPART’s independent audit program as the NSW Safety Regulator highlighted their critical interest in the Asset Management Planning process through its audits in late 2017 and 2018. A consistent theme was that the capital and maintenance investments are a key control for Network Safety. The level of investment must be tested for adequacy via additional expenditure compared with the incremental decrease in risk (i.e. the ALARP principle). This is required to meet with societal expectations and regulatory expectations. 2.2.2 Applying the principles of the Asset Management Information Strategy Enhancements to the Asset Management Information Strategy have been focussed around improved identification of the information required to make the decisions that support the asset management objectives. As the asset management programs of work are the most influential activity with respect to delivery of value for the business, the need to improve the linkages and quality of key asset data to support investment decision making was clearly identified. 2.2.3 Alignment of Asset Management Objectives, Stakeholder needs and Decision Criteria Work enhancing the Strategic Asset Management Plan was completed with the aim of more fully identifying the stakeholder needs, their link to AM objectives and defining the decision criteria to be applied.   This has resulted in better application of AM principles of Value and Alignment. Figure 2: TransGrid’s Asset Management Strategy The application of these inputs and techniques identified key gaps in the following elements of the AM planning process: 2.3  Key Activities In order to address these gaps the following activities were undertaken 2.3.1 Improved definition of the decision making criteria As part of the review of the Strategic Asset Management Plan further stakeholder consultation was undertaken. This, coupled with key information on the current performance of the network, Asset Management System and future developments allowed the clarification of the investment criteria as either: 2.3.2 Representing the end to end process To improve understanding and to show the role of the various systems a clear representation of the end to end process for Asset Management Planning was considered essential. It has been developed as shown below. Figure 3: Integrated Asset Management Planning Process This diagram enables the full range of inputs, sources of information, systems and output requirements of the end to end planning process to be fully communicated. Using this insight we have taken the process further to suit the maturing environment at TransGrid. 2.3.3 Development of the Asset Analytics Tool (AAIT) There was a need for a single system to integrate a number of disparate sources of information and provide an engine to provide a single view of commercial and risk factors when performing options analysis. A further requirement was the need to do the NPV and disproportionality analysis for each option, then be able to roll up the total portfolio for reporting and visualisation. An Asset Analytics and Insights tool was scoped and delivered. The tool was built using a proprietary platform developed by PowerPlan. The breadth and role of the tool is shown in the blue box in the diagram above and its implementation has provided material benefits to the business as described in section 2.4. The project to develop the tool was commenced in late 2017 with the final production version roll out in July 2018. 2.3.4 Data cleansing and improvement In line with the objectives of the Asset Management Information Strategy, the data needed to make the core investment decisions was identified and reviewed. The initial cleansing relied on data extracts created by the linkage with TransGrid’s ERP (Ellipse) with AAIT and matching these with other relevant sources of information. These sources included the initial risk calculations, asset condition information and location based asset criticality, which previously were all kept in separate spreadsheets. For each asset class further specific data cleansing was applied so that there was consistency of asset information across all assets. For transmission lines, separate structure sub-components such as the foundation, conductor and earth wire were created as assets, so that the transmission line risk model could be transferred into the AAIT. This meant that an additional 200,000 assets were created in the system. Also, asset information and failure curves for these components, that are

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Teak Yew – BOLT Asset Management Hackathon

Executive Summary The BOLT Asset Management Hackathon was created to provide a safe ‘free-to-fail’ space for collaborative problem solving on asset management challenges.In late 2018, nine interdisciplinary teams participated across three events where they collaborated on real world challenges faced by asset managers.Teams defined a problem and worked together through a structured and facilitated process to develop a solution. The teams then prepared and presented a pitch for their concept to the group. Participants gained skills in collaborative problem solving, appreciated the value of diversity, improved their confidence and learned a process that they could apply in their workplace. Use of Asset Management best practice Context Asset managers typically work in complex, high risk environments where safety is paramount and adherence to strict protocols is required. This can have the effect ofdiscouraging innovation if there is limited scope to test new ideas. The BOLT Asset Management Hackathon provided an opportunity for participants to explore innovativeideas in a low consequence setting. Leadership Leadership is a fundamental of asset management and skills in innovative thinking and collaborative problem solving are essential for leaders in any industry. The BOLT Asset Hackathon experience helped participants to develop their essential leadership skills including communication, collaboration, stakeholder engagement and decision making. Participants developed their leadership skills in a number of ways: Value The purpose of asset management is to create value for stakeholders through assets. Indefining their asset management challenge teams were encouraged to consider how apotential solution would create value. This was framed in terms of how solving thatproblem would reduce risk, reduce cost, or improve performance.Value created was one of the criteria for assessment of the best pitch prize. Alignment The design of the BOLT Asset Management Hackathon ensured that teams were cross-disciplinary, to encourage diversity of thought and nurture collaboration and alignment between different functional areas. One of the key learnings of participants was that they can add value by seeking diverse inputs from outside their own discipline and that every part of the business has a contribution to make in creating value for stakeholders, by solving asset management challenges. Assurance The BOLT process gave teams the opportunity to validate their ideas within a group of their peers. This asset management fundamental was important to the projects worked on by teams. These include, assuring rigour in asset management decision making, assuring integrity of data, assuring improved asset performance, assuring integrated processes and assuring value creation. A full list of team projects is included later in this submission. Degree of originality & ingenuityTo our knowledge this is the first time globally that a hackathon style event has been held with a specific focus on asset management. The concept of the BOLT Hackathon took an approach that has been used successfully in other settings and applied it to an asset management context.The BOLT process encouraged diversity of input and collaboration across disciplines. Some participants did not have previous experience in asset management but had a lot to contribute to the problem-solving environment. Participant professions included: Industries represented: Team pitches were assessed on three criteria: Innovation, Impact and Influence. These represent the Technical case, the Business case and the Human case. By focussing on these three areas, participants were encouraged to go beyond creating a technical solution to ensure that they also created value for the organisation and meaning forrelevant stakeholders. This ensured that teams took a holistic approach to the problem-solving process and encompassed all areas of importance to effective asset management including technical excellence and business value, but also embracing the important leadership aspects of communication and stakeholder engagement. Program & Project Management Three events were held in late 2018, in Brisbane, Sydney and Melbourne. Nine teams of three to five participated across the three events. Each BOLT event was run over 12 hours, from 8:00 am to 8:00 pm and followed a structured process. The event was facilitated by Dr Monique Beedles. Venues for the events were chosen for their interest from an asset management perspective. The Gabba stadium in Brisbane, the former Quarantine station in Sydney andthe Royce Hotel, formerly an automotive showroom, were examples of how assets can be repurposed for an extended life, or used for functions beyond their primary purpose. The structure of the event included an hour at the start of the day dedicated to problem definition. Teams collaborated over a working breakfast to choose the problem they would work on during the hackathon. By 9:00 am each team had a clearly articulated problem statement that they shared with the wider group. This structure was used to ensure that excessive time was not wasted on problem definition that would take away from time spent on problem solving. Teams were then guided through three 90-minute BOLTs, each with a specific focus that progressed the collaborative decision-making process. In the latter part of the day, participants focussed on developing their team pitch and preparing their presentation to the group. Team presentations were filmed and participants also had the opportunity to give a personal interview with a professional film producer to a broadcast camera. At the conclusion of presentations, a cocktail function was held to give participants an opportunity to network in a relaxed environment. During this time, a prize was awarded to the team judged to have the best pitch presentation. Value to the Asset Management Community The BOLT Hackathon events created value for the asset management community by building the skills of asset managers across all asset management fundamentals ofleadership, value, alignment and assurance. The framework of the events was specifically designed to create a safe environment for innovative thinking and creative problem solving. The BOLT Hackathon events encouraged collaboration between asset management professionals and between asset management professionals and those in otherdisciplines. This helps to expand the reach and influence of asset management beyond those currently practising in the profession. The three BOLT events held in 2018 were fully funded by Teak Yew at no cost to participants. Value to Individual Participants Individual participants benefited from developing

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Sydney Water Corporation – Enable and Optimise Projects

1. Summary of the project, product, framework Sydney Water’s Delivery Management (DM) is a strategic consortium with Lendlease and John Holland to design and deliver infrastructure projects. It has 200+ staff and 1500+ active projects. In 2018, DM implemented a series of innovative process optimisation initiatives designed to uplift asset management performance, traversing management, operations and project delivery. These included: development of a bespoke Management Operating System with embedded plan-do-check-act cycle at all leadership levels; development of an operating model; and significantly upgrading and optimising the process-driven-asset-delivery-system, the Asset Creation Process, along a with notably refined complexity tool to streamline and safe-guard delivery. 2. Description of project or framework addressing the assessment criteria NOTE: All figures containing submission supporting evidence referenced below are contained in the Question 4 response of this submission. Hyperlinks have also been included to other websites with ancillary information. An acronym key is included thereafter to facilitate review (the text in this paragraph, foot notes and the acronym key excluded from the word count). Alignment to asset management concepts and principles are referenced in [orange font and square brackets] for ease of identification. Best practice asset management begins with best practice asset creation: the core business of Delivery Management (DM) (Figure4) at Sydney Water Corporation (SWC). In 2018, DM completed a series of innovative process optimisation initiatives to significantly uplift performance across all key measures, traversing management, operations and project delivery. These consisted of three initiatives run concurrently as two projects in 2017-2018 as part of the ‘Enable & Optimise’ streams in the ‘Towards Organisational Excellence Program’ (Figure22) and which advance SWC’s corporate strategy towards a high-performing culture. The ongoing program involves consultants and has clearly defined results (Figure23). The benefits are measured via ongoing DM Key Performance Indicators (KPI’s) at the program level and by a myriad of mechanisms at the project level e.g. surveys [output-principle]. The projects commenced separately but were rolled out together with an integrated change-management-plan. Each had a project manager that reported into the Program Manager and Steering Committee. Each entailed significant research, stakeholder engagement, documentation review and quality controls. The original and innovative solutions include: The ingenuity of the MOS is its ability to support continual improvement [learning-principle] and control by providing panoramic integrated performance measurement (Figure6) [output-principle] and prescribing expected tasks (standard-requirements) and required outputs (results) over varying periods weekly/monthly/annual) for all leadership levels[1] (Figure25) and governance functions whilst overlaying the plan-do-check-act cycle throughout [assurance-principle] (Figure1&26). Aka “It’s How We Deliver”. The MOS features a defined cadence of communication, reporting & engagement with teams, stakeholders and delivery contractors (DC’s) including regular data-driven reviews at: regional quarterly all-inclusive contractor meetings (Figure12); Quarterly Connections with regional managers (Figure3); monthly team meetings; and one-on-one manager-employee meetings. The biggest challenge was distilling and integrating a multitude of sources and information – effectively 360° of process/systems to “one source of truth” [assurance-principle] – entailing significant stakeholder engagement. The reporting mechanisms [output-principle] and continual improvement cycles (see above) are integrated in the model (Figure6) – plus other learning loops e.g. Post Implementation Reviews (Figure13) [learning-principle]. One of the major challenges was modelling such a large and varied set of optimum project delivery pathways in a way that did not intimidate users (Figure8). This involved; mapping 68 processes to a level-5 detail (task-level), which were previously mapped to a level-1 detail (process-overview); plus 12+ workshops with 30+ subject matter experts (SME’s); multiple quality reviews; then connecting the maps to develop the end-to-end ACP integrating governance approvals, permissioning, templates/tools, process-performers and amalgamating these into a concise RACI structure. The simplicity of the solution considering the complexity of the process network was ingenious. Staff follow the ACP map in Helix through the lifecycle. This assurance strong approach improves risk management, safety, quality control, delivery consistency and project management [assurance-and-output-principles]. The adoption of an enhanced complimentary complexity tool (Figure10&21), the standard for infrastructure projects, allows for specific process exemptions for low risk/complexity projects throughout the lifecycle thereby scaling project effort and improving performance (linked to the MOS and KPI framework) [output-principle]. Importantly these three innovations work in harmony to uplift performance (Figure11) and outcomes at the organisation, portfolio, program, project and team levels by orientating and guiding leaders, stakeholders and staff [all-principles]. The launch comprised a blended rollout strategy with multiple workshops, e-learning tools for Helix v2 (e.g. You Tube videos) and gamified simulations (Game of Moans & Le Brouhaha) used to embed the new tools using fun as a mechanism to embed change. The benefits and value of the program are reflected in the following results: 3. Opinion as to specific contribution made by the nominated individual/team/organisation SWC deserves to win the ‘Asset Management Innovation Award’ for demonstrating to other utilities how to best develop, rollout and perform to a standardised set of innovative optimised end-to-end processes, work as one united team under an integrated management operating system and model, and as a result streamline infrastructure project delivery and enhance asset management with proven performance results. The resulting framework is strongly aligned towards outputs, assurance, learning and enabling capabilities – the principles of asset management. These initiatives are strategically and commercially important to SWC as they materially mature the asset management and business model and improve: capital results; project management delivery; business and division integration; strategic leadership; staff on-boarding; process standardisation and compliance; reporting; plus, performance and outcomes across diverse measures including environmental, safety, community, staff, financial and programs/projects. Together these process improvements advance the business and drive a high-performance culture committed to continual improvement and agile adaptive leadership. Such exemplar models are beneficial in any industry and time – but are critical in the water industry who provide the lifestream for the future and face significant growth demands (e.g. population growth, rapid urbanisation), new technology, societal and environmental challenges (e.g. sustainability, drought, naturalisation[3]) along with regulatory drivers. To illustrate the importance of optimisation in this space, note that “based on current projections, the population of SWC’s area of operations is expected to exceed 8.5 million, an increase of

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Sydney Trains – Management of Assessing Condition of Railway Signalling Systems; Development of a roadmap for life extension and renewals

  1.  Summary of project, product, framework In this project, a framework has been developed to determine the long-term roadmap for renewal of railway signalling systems on the Sydney Trains network. Equipment from different eras is in use including mechanical, electro-mechanical, relay technology and computer-based technology. The framework balances the various drivers of system safety, reliability, life expiry, maintainability, operational and performance requirements whilst managing obsolescence and delivering within constrained funding and resource. A range of asset management tools were used to develop a robust program that met the asset needs and those of the various stakeholders, as well as those of the customers. 2.  Description of project or framework addressing the assessment criteria:                                This submission is for the framework to enable the development of the roadmap for renewal of signalling interlockings on the Sydney Trains network. This comprises over 1,500km of electrified railway which is used for commuter trains, intercity and regional trains and freight operations. A range of signalling systems are in operation including technologies from different eras as follows: The mechanical and electromechanical systems are life expired, maintenance intensive and form the cornerstone of the current renewal projects; however the relay interlockings with a 40-45 year design life and the computer-based interlockings with a 20-25 year life are mostly expected to reach life expiry over the next decade. The renewal of these places a significant burden on funding required, with an investment of the order of $1.5bn over the next 10 years. The delivery of this work will also put pressure on industry resources and whilst the work is being carried out, it is essential to ensure the systems remain safe and reliable to provide the required service levels for the network. Consequently it has been necessary to develop a roadmap which correctly prioritises the asset renewals based on asset risks and operational priorities that fits within the available funding envelope and delivery capacity of the industry. Sydney Trains has developed an Asset Management Framework as part of the Asset Management System. The roadmap supports many of the objectives within the system including those related to customer satisfaction, future network capacity, reduced maintenance costs, the use of asset condition and criticality information for decision making, network safety and obsolescence management. It is therefore an integral document that aligns with our strategy for asset management going forward. This submission details the methodologies and tools used to develop the long-term roadmap for asset renewals to address the above factors and ensure the required service levels are maintained. This required a detailed understanding of the requirements which included initial and ongoing costs, operational and performance requirements, asset condition and remaining useful life, risks, safety requirements, available funding and industry resource capability. This was captured through analysis and stakeholder workshops, but the asset condition and lifecycle costing analysis required the application of asset management tools – both developed internally and by external asset management consultancies. The operating environment is complex with a range of internal and external stakeholders. The internal stakeholders include operations, maintenance, engineering, major works delivery, future network planning, commercial and asset management. The external stakeholders include Transport for NSW – consisting of long-term strategic planning, major project delivery. The organisation represents the State government and customer interests. Consequently, significant effort is required to consider the requirements of each stakeholder and develop a program which aligns with the various needs. The application of the structured process, along with the use of the tools enabled a renewals roadmap to be developed which the operations, maintenance, engineering and asset management stakeholders could align to as it was clear that the decisions were based on robust technical analysis and information. Specifically, the framework was developed using the following inputs: One of the difficulties to be overcome was that the signalling interlockings are critical assets to the reliability and safety of the network. Projects to renew interlockings typically take four years from concept to commissioning. Renewal projects must therefore be commenced early enough to be completed before the assets fail, although the exact point of failure is hard to predict as it is unacceptable for rail networks to permit interlockings to reach the point of complete failure, so minimal information is available about interlocking degradation close to the point of failure (Resnikoff’s Conundrum). To address this issue, both the ACAA tool and the DST model were used to provide information on the remaining life of the assets. The ACAA tool is based on field assessment of a number of parameters of the system. The DST model uses asset renewal and ongoing costs and risks. It also models future failure rates and costs based on historic trends and provides for uncertainties in data (the output is shown in figure 1). The output of both ACAA and DST projected a similar remaining life for interlockings. This was sense checked with maintenance engineers. The remaining life from the tools was greater than the engineers had initially considered, however on detailed analysis it was agreed that the results were reasonable. The other interesting finding from the DST model was that there is a wide range of timings for the optimum renewal time for the interlocking assessed between 12 and 30 years. This is where the overall costs of risk and renewal expenditure do not change significantly. This allows the renewal timing to be optimised based on other factors including operational requirements, the timing of major capital projects, funding and resource availability. Armed with the information from the modelling and assessments, the roadmap was then compiled to determine the projects to be undertaken and their timing. This underpins the long-term strategy for the signalling and control systems Asset Management Plan. An extract of the roadmap is included as figure 2. Since developing the roadmap, periodic reviews have been carried out twice a year; these have focused on emerging requirements and project progress. This has only required minor changes to the roadmap and has allowed teams to focus on delivery rather than changes to projects improving the efficiency

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Sydney Trains – cost/risk/performance optimisation process finds the best time to renew assets

  1.      Summary of project, product, framework Sydney Trains (ST) is introducing new business processes and decision support tools to evaluate and justify, in quantified cost, risk and performance terms, the optimal time to replace aging and obsolete equipment.  These are a significant departure from traditional data-analytical methods or conventional investment evaluation techniques. They incorporate technical, commercial and sustainability factors and enable expert knowledge to be quantified for filling gaps in hard data evidence and forecasts.  The techniques have now been applied to a range of ST asset classes, yielding multi-million dollar added value through changes in Capex and Opex requirements, risk reduction and performance improvement.  2.      Description of LCO project: best practice asset management – in practice Two big initiatives have occurred recently in the development of asset management in ST: These have delivered improved line-of-sight alignment, strategic planning, value and efficiency in how ST’s asset portfolio is managed.   The other priority is to optimise effectiveness.  This is where good decision-making is vital: determining what is worth doing, when, to deliver best value-for-money over the whole asset lifecycle.  We conducted a world-wide study of best practices and technical solutions to address these questions, concluding that the SALVO (Strategic Assets Lifecycle Value Optimisation)[1] methodology and DST[2] toolkit from The Woodhouse Partnership Ltd represented the most robust, advanced and practical solutions for our business needs.    They align with the ISO 55001 requirement for a clear decision-making framework and decision criteria. SALVO is a six-step process developed by an international group of asset-intensive organisations to: We adapted SALVO to establish an innovative Life Cycle Optimisation (LCO) process, involving a ST-customised mix of business process changes (i.e. who makes what sort of decision, how), training courses (rigorous consideration of cost, risk and performance elements, along with all other decision drivers) and decision support tools (DST) that enable instant ‘what if?’ calculation of optimal intervention timing and value impact.   The combined process has opened people’s eyes and established a new way of breaking down functional silos to rapidly achieve consensus.  We have created a fundamentally new way of looking at our assets, our interventions and our demonstration of value to our stakeholders. A distinctive feature of this approach has been how it draws together and visibly applies core asset management principles into every-day decision-making.  SALVO forces us to always consider whole lifecycle value (business impact).  It connects good decision-making to context-specific stakeholder expectations and AM objectives.  And produces clear-cut justification (and assurance) that we are doing the right things, for the right reasons, at the right times. Figure 1. Example of DST ‘storyboard’ and cost/risk/performance-optimised decision results Figure 2. Summary of Sydney Trains Lifecycle Cost Optimisation process The LCO process has also proven extremely flexible; evaluating options and quantifying the business cases for diverse cases as: User feedback: Originality and ingenuity We believe this is the first fully-rigorous development and implementation of such a decision-making framework for Asset Management within Australia.  Many organisations have addressed parts of the requirement (e.g. certain decision types) and have component tools for specific purposes, but our LCO is a systematic decision-making methodology, covering all types of asset management decision and at criticality-proportionate levels of application.  It combines human psychology (e.g. how to elicit ‘tacit knowledge’ from subject experts while minimising bias and identifying/quantifying the inevitable uncertainties) with advanced technology (e.g. artificial intelligence algorithms incorporated within the DST modules to seek the optimal work program for total cost, risk, performance impact). Other elements of innovation lie in: Program and project management Implementation of an LCO process requires new skills and a significant change in organisational culture, besides the process changes and tools/systems configuration. The successful change from established (strongly departmental) methods of working, to cross-functional, value-based decision-making required a people-centric transformation program.  From the outset, therefore, significant investment was made in training those directly involved in asset management decision-making, as well as an awareness and education program for ST stakeholders and sources of relevant asset and intervention expertise. Following signoff of a project charter and appointment of the steering committee, the program started with SALVO/LCO introductory training for potential users/contributors/beneficiaries. The next phase developed an integrated process map for the LCO process, showing its fit with existing ST business processes and systems. Detailed methods training was then grouped by decision-type audiences, such as those responsible for projects/change evaluations, strategic spares, operational maintenance, inspection and lifecycle (e.g. Refurbishment, Renewal) interventions.  In all cases, the formal training was followed by immediate on-the-job facilitation of ‘live’ current cases, and coaching to ensure conceptual understanding was reinforced and consolidated by practical application. Throughout the program, skills and competency assurance was a priority, using a formal certification scheme (mini exams and independent case validations) to ensure that standards and consistency are maintained. An agile project management process was used throughout, to adapt as skills, knowledge and confidence grew.  This has resulted in a naturally-evolved group of ‘super-users’ providing peer support and quality validation to those with more intermittent involvement.  This has delivered a strong sense of ‘ownership’ in the resulting solution, embedded in strategic planning and the AM management system (e.g. a clear-cut decision-making framework/criteria) and transparently evident justification for AM decisions that show how costs, risks and performance are optimised in day-to-day decision-making.   The next phase of the transition is therefore in sight – namely to consolidate such decisions into corporate resourcing and strategic budgeting processes, including the business interface with Transport for NSW, the ultimate asset owner. Business impact The LCO process is consistently revealing scope for improving the mix of costs, risks and performance (compared to expert judgement or current/historical practices).   From a representative sample of eight asset management decisions, one case typically confirms current practice to be correct and the others show improvement opportunities of A$20k/year to A$300k/year each (through a mixture of costs avoided, risks reduced and/or performance improved).  And, in a few cases, the impact is substantially greater: already we have several cases where the process has shown benefits of A$20-plus million NPV.   Other organisational benefits, we

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Sydney Trains – Track Possession Mobile Applications Suite

1.  Summary of project, product, framework Sydney Trains’ Asset Management Division has developed a suite of mobile iOS applications to improve Network Access planning, efficiency and safety. The Possession Search app gives visibility of the possession program, including approved works projects and boundary diagrams. The GPS Gates Locator app lets staff view/navigate to boundary/access gates across the entire network. The Access Locator app uses complex algorithms to find trackwork possessions by location and network diagrams using GIS. The development of the apps aligns with the organisation’s objectives of creating an environment that improves safety, creates additional capacity, improves asset performance and operational efficiencies across the business. 2.  Description of project or framework addressing the assessment criteria:                                Overview of Mobile Applications developed The three mobile iOS applications have been deployed to over 1700 individual staff members across the Transport cluster on over 2500 devices (iPhones and iPads). 1. Possession Search Background and the Problem Sydney Trains conducts more than 3000 track possessions per year across a complex interlinked rail network, with an estimated 900-plus meetings held for possession planning and delivery. As a result, the Track Possession Program document used to view data on available possessions (dates, configurations, week) was a complicated A3 document created in Excel (see figure 1 in General Comments). The sheet, which had to be printed out and carried by staff, had many constraints, including the addition of externally driven special events, causing ongoing revisions to the program. This resulted in planning issues and version control, with printed copies becoming obsolete and the need by staff to constantly print new versions. With approximately $6million of work each weekend, inefficiencies in planning resulted in lost opportunities and decreased value. The solution: Possession Search app Through brainstorming, workshops, stakeholder consultation and collaboration within multiple teams across Sydney Trains and TfNSW, the Asset Scheduling & Delivery Coordination (AS&DC) team developed the innovative iOS application that pulls Track Possession data from enterprise systems and efficiently places information in the hands of staff via their mobile devices, giving them instant access to up-to-date information, anytime, anywhere. The underlying data comes from enterprise systems (Primavera & TrakII). Possession Search allows users to easily search for track possessions based on dates, configurations, weekend or week numbers, reducing any potential user error in the interpretation of the Track Possessions Program. People can view workgroups, which allows for better coordination, (with larger possessions having hundreds of workgroups). The app is an invaluable resource for all staff, improving track possession planning; a critical component of Sydney Trains’ Maintenance Works Planning resulting in increased utilisation of track possessions while reducing customer impacts. This has been showcased to other railway organisations, as no other organisation is currently able to interlink their entire track possession program with their entire maintenance and capital works programs, as well as integrate their outage diagrams into a single mobile platform. 2. GPS Boundary Gates Locator Background and the Problem With multiple track possessions occurring each week, Sydney Trains’ protection staff are required to enter various parts of the network (1436km of track) at night and/or in inclement weather to place/remove possession protection (safety/warning devices) prior to the start and finish of a possession. To enter the corridor, staff need to drive to boundary/access gates to locate the intended asset. There are more than 3000 gates in the network and most staff are only familiar with a small percentage of these. As a result staff could be walking within the corridor (danger zone) for distances longer than necessary due to unfamiliarity with location of gates. This increased safety risks and reduced productive time. Access gate data was available in GIS systems, however it was not possible to use it effectively on a mobile device. GPS Boundary Gates Locator A solution was required that would allow all staff to access. Using Google Maps infrastructure, the team integrated boundary/access gate locations based on track information and map coordinates from Sydney Trains’ GIS system. This innovation provides a mechanism in assisting staff to effectively plan works. This includes providing estimates for the time required to travel to a boundary gate as well as the location. Along with the ability to differentiate between vehicle and pedestrian gates, this allows for the effective scheduling of plant and equipment for delivery. Now field staff can use satellite imagery to gain access to the corridor, even if the sight has been visually blocked (eg. By trucks/vegetation). Previously no GPS solution showed the location of boundary gates for staff to search/navigate to. This has resulted in improved productivity and decreased staff time in the danger zone. 3. Access Locator Background and the Problem With over 3000 track possession per year, there is a lot of complexity in understanding the location of possessions. Often project teams would utilise larger possessions unnecessarily which resulted in reduced efficiency and clashes with worksites and resources. E.g. For a project team to work at Carramar they would need to understand network topology and look through hundreds of upcoming possessions (only boundaries provided) to find which ones they could potentially work in, with assistance/confirmation from a subject matter expert. Access Locator The Access Locator iOS App has the ability to search through track possessions by location. There is currently no other program that has this functionality. The application uses a complex nodal algorithm to search through thousands of possessions and calculate whether a particular location is within the boundaries of each possession, returning a list of only relevant possessions. E.g. For an input of Carramar, the app would return a list of suitable possessions that could be used by a project. This would have previously taken 15-60mins to complete. As well as saving time, the application improves accuracy; offering potential access windows to projects by improving possession utilisation, reducing the number of possessions being required and reducing rework during planning. In addition, the App integrates into other reference materials such as the Train Operating Diagrams. It also links directly to Sydney Trains’ GIS through close collaboration within Sydney

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Sydney Trains – ISO9001 & ISO55001 Alignment and Business Systems Integration

  1.  Summary of project, product, framework ISO9001 & ISO55001 Alignment and Business System Integration Sydney Trains manages $40 billion worth of assets under an operator-maintain model within the Transport for NSW cluster of agencies. The Sydney Trains Asset Management System, underpinned by ISO9001 and ISO55001 functions as the mechanism to deliver value with a holistic approach ensuring effective business outcomes. In delivering an effective Asset Management System and providing efficiencies for the organisation, alignment of the ISO9001 and ISO55001 standards and integration of associated business management systems has been undertaken. This award application details the approach, creative solutions and organisational benefits in undertaking this initiative. 2.  Description of project or framework addressing the assessment criteria:   ISO Alignment Sydney Trains (ST) has maintained Quality Management ISO9001 certification for the Engineering & Maintenance Directorate (EMD) for the past 26 years, having achieved this in October 1992. ST achieved Asset Management certification to ISO55001:2014 standards in June 2017, having started this journey to develop the Asset Management System in 2014 with the stand up of Sydney Trains from RailCorp. In April 2018, ST upgraded from ISO9001:2008 to the current standards of ISO9001:2015, which paved the way for future alignment of both ISO9001 and ISO55001 standards and the integration of relevant business systems. As soon as the organisation achieved the ISO9001:2015 upgrade, the business initiated the planning, design and development, which included building the mechanisms to integrate the systems, processes and methodologies in preparation for ISO alignment. Re-certification of both ISO standards is planned for June 2019, which will complete the 16-month project. Business System Integration Having two established business management systems, the Quality Management System (QMS) and the Asset Management System (AMS), the business needed to integrate the two systems to benefit from synergies, merging the QMS into the AMS, ensuring the integrity of intent and flavour of the quality requirements of the business. The latest version ISO standards allow for alignment and synergies, which are apparent, however the intent of the two standards is different, which impacts methods and practices in application. At a high level the standards align, and a large amount of the wording appears to be the same, however the related clauses can be interpreted quite differently and in some areas can be more detailed in one standard than the other. Significant debate was undertaken to agree on interpretation of standards and applicability to the business. To be able to align the AMS across different business scopes meant that the organisation needed to adopt the higher standard to integrate the relevant clauses into business requirement documentation for standardisation across the two different scope of the business (ISO9001 for EMD and ISO55001 for ST). This required the integrating and combining of relevant business system requirements, frameworks, procedures, process, guidelines, templates etc. Careful consideration was made in how system requirement documentation reflected and demonstrated compliance and scope for both the ISO standards. A Quality & Asset Management Alignment Guideline has been developed to demonstrate the business system integration. Another solution which was utilised to improve understanding in the business of alignment and provide a platform to navigate the business through an integrated lens was the introduction of the Asset Management System Framework (AMSF) model, deployed through the Sydney Train Knowledge Portal. This portal provides an integrated view and access to business processes and controlled business system documentation in addition to demonstrating business compliance and alignment to regulations/ISO standards. Assurance This initiative included the development of a compliant, whilst workable solution for business assurance, which would allow both scopes to be adequately covered with the same resources, which was originally used to cover only the ISO9001 scope for EMD and now needed to include ISO55001 scope for ST. From an integrated approach we needed firstly to incorporate different audit methodologies to address compliance for both IOS9001 and ISO55001 and provide a more robust approach to adding value to the business. Incorporating both the business system audit approach, which focused more on the ISO clause compliance and the ISO55001 asset management flavour to undertaking end-to-end process audits, which cut across multiple divisions. This integrated approach provided an improvement in audit findings and supported improved business maturity. The business also needed to demonstrate how the organisation covered the combined EMD/ST assurance scope. This was undertaken by implementing a three-year forward planning rolling assurance plan, demonstrating the rotating of asset classes and asset categories based on a risk-based decision-making approach. The assurance plan also incorporated non-asset and support-related business areas. This approach had been a first for the organisation and has proven effective in application, strategic planning and demonstration of robust assurance regime. Benefits Undertaking alignment of both ISO standards and integrating the associated business systems has produced a number of benefits for Sydney Trains, the main benefits include: Conclusion Sydney Trains, as an industry leader has engaged and embraced this initiative and through this commitment has resulted in numerous benefits throughout the organisation. The initiative to achieve ISO alignment and integration of associated business systems has been both challenging and rewarding for Sydney Trains and the benefits are continuing to unfold. For a large and complex organisation like Sydney Trains, a key benefit is having an effective framework to align and build upon for all asset-related business activity. This initiative has built momentum within the organisation and has led to benefits, continuous improvements and business maturity flowing through the business to everyone involved in managing assets at Sydney Trains. June 2019 is the planned date for the ISO recertification, for a combined quality and asset management system, which when gained will be the acknowledgement of achievement for this initiative. This recertification will be a first within the industry where we draw from the highest requirements of each standard to gauge our organisation. However, the benefits will continue across the business, as a platform to drive further improvement via process efficiencies and business maturity. 3.  Opinion as to specific contribution made by the nominated individual/team/organisation Business System Team A number of challenges were

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Sydney Trains – Asset Management at Sydney Trains: Moving Beyond Certification

  1.  Summary of project, product, framework ISO9001 & ISO55001 Alignment and Business System Integration Sydney Trains’ journey towards becoming a world-class asset management organisation kicked off with the achievement of ISO55001 certification. The immediate question the followed for this 100-plus year old public sector organisation was – what’s next? How to move forward to maturity, excellence and institutionalising asset management? Through active stakeholder engagement, structured gap analysis and collective decision making, an aligned way-forward to asset management maturity and excellence has been agreed that now forms a comprehensive action plan aimed at institutionalising asset management at an organisational scale and setting an example for complex organisations to move beyond the achievement of improvement goals. 2.  Description of project or framework addressing the assessment criteria:   Asset Management Principles Sydney Trains is a complex organisation with an asset value of $40-billion and approximately $1.5-billion annual asset management requirement. A workforce of 11,000 is employed to manage assets across all stages of the asset lifecycle, managing a multitude of assets spread across the network throughout New South Wales. To manage such a complex asset portfolio with a diverse range of stakeholders often poses a risk of losing the line of sight of key objectives. Maturity and excellence warrants coordinated actions with stakeholders working in tandem to deliver the asset performance which is balanced with the cost of managing the assets and the mitigation of the risks. The asset management principle that is now adopted as the key theme to all our actions at Sydney Trains is “Alignment”, which is to align all the functions/directorates/divisions/groups to optimise the asset performance cost and risk in order to maximise the value of assets. Sydney Trains’ Solution      Having achieved the prestigious ISO55001 certification for our asset management system in 2017 we decided that the best way forward was to involve all stakeholders across the organisation to lead the way through brainstorming, analysing and identifying areas of improvement to minimise gaps between the intended process and the prevalent field practice. Sydney Trains is a complex organisation with entrenched ways of working, often within silos, so in order to break the silos and bridge the information gaps, our approach was to simplify the message. Gauging the organisational behaviour, we selected the theme of “Common Sense”. Asset management, in essence is nothing but common sense, so instead of bombarding stakeholders with asset management jargon, we decided to employ a simple approach of making the stakeholders analyse their inputs and outputs and matching them with the requirements of the next stage in the process or of their internal customers. We asked them the simple questions below: Wherever, the answer for the above questions was ‘no’, that stage/process/instance automatically indicated the gap in the system. The stakeholders were then engaged to identify the requirements that will help to convert their answers to ‘yes’, which in turn minimises the gap between what was happening on the ground and what should happen. With this approach we were able to actively engage 200-plus decision-making stakeholders who in turn are managing our 11,000 workforce. The organisational discourse shifted from a “tick box” approach, wherein the delivery function are responding only to the extent of compliance, to the active common sense conversation, such as how can we brainstorm and resolve the varied and conflicting expectations and requirements. Moreover, given the coverage of the entire organisation and all the related processes, it is not easy to make a direct practical connection/correlation between the long-term view and the short term, here and now perspective given the time lag between the plans projections, the time of work delivery and numerous changes happening within this period. While the organisational strategy may project lofty and sometimes misinterpreted objectives, day to day activities may not change and continue in isolation to the organisational objectives. For example, we demonstrated the direct impact of asset management plan proposals on the short term demand forecast for inventory purchase using the simple “common sense asset management”. We were able to establish direct line of site between asset management planning and all the downstream delivery related functions including procurement, scheduling, and delivery on site and steer the stakeholders to analyse their inputs and outputs without getting bogged down with complexity of the entire process. At the same time, the simple common sense approach was able to provide the big picture and the demonstration of how the actions of each stakeholder will impact the asset management process as a whole. Sydney Trains is attempting to join all the dots and tie all aspects of asset management with a common thread. We are aligning almost all asset management decision making points regardless of functions or organisational structure, ranging from objectives, strategies, data standards, maintenance delivery, supply chain, network access, asset data hand over, asset funding, competency and many others. Our approach comes from assessment through internal and external stakeholders’ brainstorming, and many rounds of discussion to chart out the collectively agreed way-forward that clarifies and defines the output of each and every stage of the asset management process.  On a high level, our approach involved:  Our goal was to confirm and validate current end-to-end asset management practice and identify what is needed for a future state of mature and sustainable asset management. We also needed to identify and confirm gap areas of improvement, action required to address the gaps and agree on the way forward. Approach to action Stakeholders’ assessment Stakeholder assessment involved mapping and understanding the link between all the activities that are or have the potential to influence the management of the assets throughout their life cycles. Sydney Trains has teams spread across all its directorates, located at numerous locations, handling disparate responsibilities and making decisions that impact the management of assets (refer Figure 1). Stakeholders make decisions that may impact the state of assets in the short, medium and long-term – anywhere from the present day to 10-plus years in the future. It is, therefore, imperative to understand not only the decision-making impact in

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NSW Transport Roads & Maritime Services – Removing Barriers to Women’s Participation in Road Work

Executive Summary NSW Roads and Maritime Services’ asset management team is building a more diverse workforce. Under leadership of our Regional Director, John Dinan, 50 percent of all new regional road workers recruited this year are women. John achieved this by removing barriers to participation, making workplace changes, and developing a targeted recruitment campaign. This innovative approach delivered close to 1400 applicants from across the state. The end result was that 15 new female road workers and 23 new female apprentices and trainees joined Roads and Maritimes’ ranks in late January 2019. NSW Roads and Maritime Services manages and maintains $94.4 billion in assets. That’s more than a quarter of NSW Government’s infrastructure assets. These include roads, bridges, tunnels, traffic signals, as well as intelligent transport and information systems. Our asset management team employs close to 3,000 people spread across the state. Their job is to get more out our network so that more people and freight can be moved on our roads – in our cities and regions. Maintaining our regional assets is led by our Regional Maintenance Director, John Dinan. He oversees more than 1,300 people who keep regional communities connected with quality roads. 2. Demonstration of Organisational Leadership in creating and maintaining Roads and Maritime Chief Executive Ken Kanofski says “diversity is a key priority and focus for us. Not only because it is absolutely the right thing to do, but also because it is the smart thing to do.”  It’s a philosophy that we are putting into practice in our policies, plans and decision-making at all levels. Roads and Maritime is building a more diverse workforce. Our Diversity and Inclusion Plan 2020 outlines our five priority areas: We’ve set ourselves clear goals, including achieving a target of having women in at least 35 percent of all senior service roles by 2020. As of January 2019, 30.7 percent of our senior service roles were held by women. Our asset management team in particular is improving women’s participation in our workforce too by driving new approaches to recruitment. Asset management leaders like John Dinan recognise that it is important to attract and retain women at every level of the organisation. “Community attitudes and expectations are changing and organisations like ours need to keep up. That means making a bigger effort to encourage women into all sorts of ‘non-traditional’ roles, including outdoor road work,” John says. John said the need for change really hit him two years ago when at meeting of his field managers on International Women’s Day there was not a single female manager in the room of 50 people. 3. Demonstration of Innovation in your asset management team Under John Dinan’s leadership, 50 percent of all new regional road workers recruited this year are women. He achieved this by removing barriers to participation, making workplace changes, and developing a targeted recruitment campaign. Thanks to John’s intervention a truck drivers’ licence is no long required to apply for road worker roles at Roads and Maritime. Traditionally, women tended not to have a truck drivers’ license but John identified this as a qualification that could be easily obtained after 3-4 months of on-the-job training. By changing this, John not only removed a barrier to participation but was able to transform a straight recruitment drive into a training program. This enabled him to specifically target women to fill up to 15 roles. Now, managers who choose the most suitable candidate can provide them with necessary training to get a truck driver’s licence, a certificate in civil construction at TAFE and on-the-job training on all facets of road work. On top of this, John’s recruitment campaign used digital advertising to target women and Aboriginal candidates for trade-specific roles including plant mechanics, carpentry and civil construction. This innovative approach delivered close to 1400 applicants from across the state. The end result was that 15 new female road workers and 23 new female apprentices and trainees joined Roads and Maritimes’ ranks in late January 2019. John’s team has also been progressively making our road work sites more inclusive by ensuring amenities reflect the needs of different genders. John has now set a recruitment target of having women fill at least 50 percent of all regional maintenance job vacancies. His aim is to recruit more women into supervisor roles and to have at least one all women road crew. 4. Diversity benefits John Dinan’s diversity and inclusion achievements are already bearing fruit, changing the lives of Roads and Maritime’s new recruits and our asset management teams. It has opened up new career opportunities for these newly appointed women road workers, apprentices and trainees, providing a possibility of moving into supervisor and more senior positions sometime in the future. Roads and Maritime’s regional maintenance teams are predominately made up of people who come from the regional communities where we work.  By building a more diverse and inclusive workforce, we are also demonstrating to our existing regional teams how committed we are to the future of their work and communities. Roads and Maritime’s commitment to diversity has been showcased at Roads Australia. 5. General Comments John says what he learnt from this recent experience was how to remove barriers to increasing women’s participation in Roads and Maritime’s asset management workforce. “Current community expectations around diversity mean there is no excuse for poor rates of women’s participation in any workforce. So, if you want to changes things, you will find a way to remove all internal and external barriers to getting more women into your team.” 

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Programmed – Innovation

Summary of the project, product, framework Programmed FM provides asset management and facilities maintenance services at the Hopkins Correctional Centre (HCC) under a Public-Private Partnership (PPP) contract. Our innovation includes: Description of project or framework addressing the assessment criteria The Hopkins Correctional Centre (HCC) is an Australian medium security protection prison for males located in Ararat, Victoria. Under a Public-Private Partnership (PPP), the Aegis Correctional Partnership designed and constructed the prison, which opened in 2012. Since then, Programmed FM as the facilities management partner in the consortium, has provided asset and facilities management services to the 800 bed Prison. In 2014 Programmed FM secured a 25 year contract with HCC.  This service provides asset management deliverables of: Programmed FM is also responsible for prisoner labour management which sees many of the services, including soft services, delivered by prisoners. 55001 Programmed FM delivers ISO55001 certified Asset Management service that is supported by additional certified management systems (ISO9001, ISO14001 and AS4801) that forms our Integrated Management System (IMS) approach. Programmed FM’s compliance to these standards is an innovative asset management approach which provide a basis for HCC to realise optimised maintenance of the facility over the life of the contract. HCC benefits from Programmed FM’s Asset Management System that conducts, records and maintains asset condition at the prison as well as develops lifecycle and maintenance plans. This innovative approach Programmed FM has taken to asset management enables HCC to identify asset degradation at key intervals that enables strategic decision making for asset replacement to minimise failure risk and where to stretch asset life to reduce expenditure’ We have been praised for our innovative approach to asset management, with Vicky Rizkalla (Acting General Manager – Department of Justice) lauding our “detailed Asset Management Plans that allow them to maintain the facility and its assets to a high standard”. ProMap Programmed FM’s approach to Asset Management believes in investing in innovative technology and new platforms that provides value to our customers. Our field mobility application (ProMAP) demonstrates this. ProMAP is a data capture and job management front-end application which allows us to send and receive work orders and related asset information directly to and from our tradespersons’ mobile devices in near real-time. Subcontractors can schedule jobs to their technicians via an access controlled portal that provides a list of jobs allocated to the individual subcontractor. ProMAP enables updating of asset condition directly into our Computerised Maintenance Management System (Maximo), and data capture in the Asset Register. Our client benefits from ProMap enabling them to access to real-time information, including the status, performance and work orders. It saves on costs for our clients as this solution delivers to HCC a responsive, systematic and quality controlled solution with accurate and timely invoicing. ProMAP allows: Following work order completion, the required service outcomes (e.g. response times) that been programmed into Maximo is then compared to the actual service quality deliverables and standards of the Contract. Health, Safety and Environment Programmed FM’s innovative IMS approach to Asset Management has led to a Zero Harm innovation to Health, Safety and Environment in the installation of an electrolysed water system (eWater). eWater removes the need for cleaning chemicals for the floors, windows, benches and vegetables in the prison kitchen reducing costs of up to $45000 for: eWater is produced is through electrolysis which applies an electrical charge to a mixture of ordinary tap water and salt which splits the water mixture into positive and negative ions, creating two highly effective and safe solutions on opposing ends of the PH scale (acidic for antimicrobial sanitising and alkaline for cleaning) creation two products: eWater is safe and non-toxic for humans and for the environment, with no need for personal protective equipment, hazchem signs or safety data sheets.  Though ‘acidic’ the acidity levels are safe for contact with skin, which the additional benefit that it is encouraged for handwashing for the effective hand hygiene in food handling. Users have also found that it does not cause or inflame dermatitis in the way antibacterial hand wash soaps can. Opinion as to specific contribution made by the nominated organisation Programmed’s approach to Asset Management provides a real platform for clients to achieve optimisation: General Comments Summary of the Help Desk Flow Figure 1 Summary of Help Desk workflow Figure 2 ProMAP Mobile Works Management Technology

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Programmed – Asset Management Information Management

Summary of the project, product, framework Programmed provides asset management and facilities maintenance services at the Hopkins Correctional Centre (HCC) under a Public-Private Partnership (PPP) contract. The contract is supported by a mobile workflow process utilising a smart phone and tablet application that integrates with Programmed’s Computerised Maintenance Management System (CMMS) for real-time data capture and transfer by field technicians and key subcontractors. Programmed’s mobile process delivers efficiency and responsiveness.  Work orders are sent directly to the mobile device. The application prompts a safety risk analysis before work commences. Notification is sent back to the CMMS upon maintenance completion. For subcontractors, work completion generates a recipient created tax invoice to commence the payment process. Description of project or framework addressing the assessment criteria The Hopkins Correctional Centre (HCC) is an Australian medium security protection prison for males located in Ararat, Victoria. Under a Public-Private Partnership (PPP), the Aegis Correctional Partnership designed and constructed the prison, which opened in 2012. Since then, Programmed FM as the facilities management partner in the consortium, has provided asset and facilities management services to the 800 bed Prison for 25 years. Services include maintaining a detailed asset management plan, ongoing whole of life modelling, reactive, planned and preventative maintenance and project works.  Programmed FM is also responsible for Prisoner labour management which sees many of the services, including soft services, delivered by prisoners. The HCC contract is complex and strategic asset management and was challenging in the absence of an asset and location hierarchy. This resulted in the following issues occurring on a regular basis: To rectify this and deliver best practice to asset management and information delivery, our mobility process was introduced at HCC. This field mobility process supports a responsive, systematic and quality controlled delivery of information and is widely used across other Programmed contracts. Programmed have implemented its mobility process in the prison environment for real time completion and allocation of both reactive and preventative maintenance work orders. This method allows for real time capture of asset condition data which feeds back into our predictive lifecycle models.  It allows for less movement around the prison which mean less risk from exposure to prisoners and efficiency gains. To lower the risk in a prison environment, we have developed a high tensile steel tether that is connects the mobile device to the technician’s bags. Our mobility process is a data capture and job management front-end which delivers best practice at HCC through the following: Throughout the course of the contract, the asset manager and the performance and reporting analyst continually monitor and analyse asset data to determine trends, identify asset condition and failures, and provide advice and support to optimise whole of life outcomes and total cost of ownership. Programmed FM has barcoded all assets to facilitate ease of asset data collection and deliver operational efficiencies. The team scans the barcode into the mobile application, undertakes the assessment, and updates the asset rating. This level of integration and transparency enables us to proactively measure asset cost and performance, and refine the asset management approach at HCC. The integration and high level of data accuracy supports performance reporting, forward lifecycle planning and informs asset remediation, replacement and refurbishment decisions. Where opportunities are identified, Programmed FM develops business cases based upon asset data insight to provide value back to the Department of Justice. These include strategies for: The mobile process has been significantly beneficial and has added value to HCC and the Aegis consortium. It has implemented paperless work order generation and management, supporting our corporate social responsibility commitments enabling our team and key subcontractors to meet and exceed high priority reactive. The Help Desk, our staff and key subcontractors have real-time access, delivering responsive, systematised and quality controlled process with accurate and timely invoicing. Data integration directly into Maximo has provided information on corrective maintenance at a high speed, maintained the integrity of asset data, delivered more efficient reactive work order management and allowed us to better monitor asset performance. Opinion as to specific contribution made by the nominated organisation The introduction of our mobile process at HCC has, in a single step, overcome the challenges in asset management that existed due to poor as-built drawings. It has increased the efficiency and effectiveness of asset management and delivered a more responsive reactive maintenance information. The near real-time visibility of asset data and maintenance performance provides HCC, Aegis and Programmed FM with better quality data and more accurate information to make critical decisions at the prison. Operational continuity is enhanced through the ability to directly intervene where reactive maintenance is at risk of exceeding the rectification time. Safety is enhanced by the automatic prompting to the team member/key subcontractor to undertake a Take 5 risk assessment before commencing work. This mobility process has also reduced the costs to our subcontractors, through more efficient administration and faster payment cycles. General Comments Figure 1 ‘Take 5’ safety notepad Figure 2 Mobile process Take 5 Entry prior to work commencement

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Infrastructure NSW – New South Wales Asset Management Policy

NSW Asset Management Policy In the State Infrastructure Strategy 2018-2038: Building Momentum, Infrastructure NSW found that whole-of-government asset management practices were inadequate and represented a risk to making the most out of the State’s assets over the long term. This resulted in the NSW Government accepting Infrastructure NSW’s recommendation that a revised asset management policy be completed by the end of 2018. Mr Rami Affan delivered the Asset Management Policy for the NSW Public Sector (the Policy) which was endorsed by the NSW Cabinet Standing Committee on Infrastructure in December 2018. This is a critical strategic breakthrough for NSW. It has significantly increased the profile of assessment management policy and practice across the Government – all of it due to the personal leadership of Mr Affan. Innovation Use of Best Practice Asset Management Principles The introduction of the Policy will result in NSW Government agencies aligning with the international standard ISO 55001 – Asset Management and will be a significant step towards ensuring the public sector collectively adopts best practice asset management principles to improve accountability, performance and capability.The Policy will require agencies to develop and implement asset management frameworks that: Agency executive level endorsement is assured through an attestation process where agency heads are accountable to ensure that asset management principles within the Policy are adhered to. These principles emphasise the role of agencies as stewards of public assets and the importance of balancing cost, risk and performance in decision making. This is intended to establish the understanding that assets exist to provide value – a notion that underpins asset management best practice. As part of the implementation of the Policy Mr Affan is also leading a review to better understand and manage NSW maintenance backlog. This will involve developing aconsistent definition for ‘backlog maintenance’ and measurement methods. This will provide agencies an evidence base and a process for maintenance funding submissions to be considered with a comparable level of rigour as infrastructure funding submissions. Degree of originality and ingenuity of solution The Policy is a departure from previous siloed approaches to asset management with a focus on inputs and outputs as it requires agencies to adopt a whole-of-government and whole-of-asset life cycle approach considering broader outcomes as well as interdependency between sectors. This consistent approach to asset planning and delivery is underpinned by consideration of costs, performance, risk and infrastructure resilience aligned to priority agency and government outcomes. Mr Affan has adopted a collaborative and inclusive approach to develop the Policy, working closely with agencies through the AMCoP, with a key objective to lift capability and maturity to achieve best practice rather than to narrowly prescribed compliance measures. The implementation of the Policy will drive best practice across Government as it provides less mature organisations with the opportunity to develop a roadmap towards achieving the Policy’s asset management objectives as part of the attestation requirements. Program and project management The Policy was developed through extensive consultation with stakeholders across the Government and included a ‘lessons learned’ review of the Victorian Government’sexperience implementing the Asset Management Accountability Framework. Through AMCoP Mr Affan worked with over 30 agencies to raise awareness to develop thePolicy. The AMCoP not only provided a communication platform to develop the Policy but it also facilitated cross-agency collaboration which is essential to the whole-of-government support needed to implement the Policy. There are currently over 70 AMCoP members from the 30 agencies signifying the high degree of commitment to implement the Policy. Speakers at the AMCoP have included key Asset Management Council members and expert practitioners from industry and government (including the Victorian Government) who have showcased leading practice. This knowledge sharing is a key aspect to lift assetmanagement capability. Benefit/value of the project or service to the community or organisation The NSW asset portfolio is worth more than $300 billion and is expected to grow significantly because of unprecedented infrastructure investment valued at some $90 billion over the next four years. In addition, population growth, climate change, and rapid technological advancements will mean that the performance of the State’s assets will need to address these challenges and to continue to provide value to the people of NSW. The Policy is fundamental to ensuring that NSW’s infrastructure meets service demand now and into the future through its requirement that agencies broaden their assessment of asset performance to consider economic, social and environmental benefits. These benefits will be considered through an assurance process which will ensure that agencies identify the optimal asset maintenance regime and expenditure required, including whole-of-life cycle costs. The importance of the Policy was recently highlighted at the NSW Asset Management Breakfast in February 2019, jointly hosted by Infrastructure NSW and the AssetManagement Council of Australia. During this event, central agency heads Tim Reardon, Secretary Department of Premier and Cabinet; Jim Betts, CEO Infrastructure NSW; and Michael Pratt, Secretary NSW Treasury all emphasised importance of the Policy to ensuring that NSW get the most out of the State’s large assets. Kirstie AllenHead of Strategy and PlanningInfrastructure NSW

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Infrastructure NSW – New South Wales Asset Management Strategy

Getting asset management right: A new Asset Management framework for the NSW Public Sector Rami Affan[1] Abstract This paper outlines the whole of NSW Government approach, as led by Infrastructure NSW, to develop a new modern NSW Asset Management Framework that is focused on improving the asset management capability and accountability of the NSW public sector. This approach was in response to the anticipated challenges of population growth, climate change, expectations of level of service offered by infrastructure and the age profile of assets as outlined in the NSW State Infrastructure Strategy 2018-2038. A strong asset management framework is critical to extract maximum benefit from the NSW asset portfolio and to ensure that infrastructure spending remains sustainable to meet future service demand. A NSW Government Asset Management Policy is the first step to ensure that the management and use of the State’s assets must become smarter, more productive and efficient to manage the upward pressure on maintenance requirements and expenditure. Keywords  NSWAsset Management Policy, NSW Asset Management Framework, NSW State Infrastructure Strategy 2018-2038, Infrastructure NSW 1 Introduction A strong asset management framework is critical to extract maximum benefit from the asset portfolio of NSW and to ensure that the State’s infrastructure spending remains sustainable to meet future service demand. This paper outlines the whole of NSW Government approach, as led by Infrastructure NSW, to develop a new modern NSW Asset Management Framework that is focused on improving the asset management capability and accountability of the NSW public sector. This approach was in response to the anticipated challenges of population growth, climate change, expectations of level of service offered by infrastructure and the age profile of assets as outlined in the NSW State Infrastructure Strategy 2018-2038. 2 The need for change In February 2018, the NSW State Infrastructure Strategy 2018-2038 (Infrastructure NSW, 2018) was released. This strategy set out a 20 year vision for the state to have the right infrastructure, in the right places, that is well managed and put to good use, boosting productivity, global competitiveness, and improving the quality of people’s lives. NSW currently has the largest state infrastructure investment program in the nation (over $87 billion from 2018/19 to 2021/22), supported by the strongest state economy in Australia (NSW Treasury, 2018). Unlike prior state infrastructure strategies, this strategy looked beyond existing infrastructure needs. The recommendations in the State Infrastructure Strategy 2018-2038 identify investment and policy priorities that are achievable, affordable, and that deliver the highest economic, employment and liveability benefits to the people of NSW. This strategy is less about a recommended list of projects – NSW already has a healthy pipeline of capital works – and more a set of policies and strategies required to make more efficient use of existing and new infrastructure with a focus on optimising efficiency, better asset management and managing peak demands while delivering essential infrastructure in the most cost-efficient way. As outlined in the State Infrastructure Strategy 2018-2038, the demand for infrastructure to meet growth is increasing, but government alone cannot afford to build its way out of demand. Population growth, climate change and increasing service expectations (as shown in Figure 1) offered by infrastructure are placing risks on asset performance and the NSW economy which is forecast to grow from $539 billion today to $1.4 trillion by 2056. Figure 1 – Forecast of demand on services in the next 20 years (Infrastructure NSW, 2018) In response to these challenges, the State Infrastructure Strategy 2018-2038 makes recommendations for the NSW Government to introduce an asset management policy that includes a new assurance model managed by Infrastructure NSW by the end of 2018 to transition NSW state agencies into a new Asset Management framework in line with modern accepted asset management standards and practices. At the 2018-19 Budget (NSW Treasury, 2018), the NSW Government’s recurrent maintenance expenditure was approximately $4.4 billion for the non-financial public sector in 2017-18. Despite an anticipated growth of 22% in assets from the significant level of investment noted above by 2022, maintenance funding in the short term is to remain the same. In addition, the current age profile of assets and service expectations is placing significant upward pressure on maintenance requirements and expenditure in the near term. Further compounding these challenges is the current asset management capability in the NSW public sector and industry. In April 2018, the Asset Management Council of Australia (Asset Management Council, 2018) surveyed a cross section of organisations from a variety of industries throughout Australia and determined that the state of asset management capability within the industry remains a current challenge across Australia, as summarised in Figure 2. Figure 2 – Asset Management Council Industry Survey (Asset Management Council, 2018) In addition to responding to the recommendations in the State Infrastructure Strategy 2018-2038, the proposed new NSW Asset Management Policy also required a focus on the asset management capability and accountability of NSW State agencies. The policy does not merely ask organisations to do the right thing, but also advocates the creation of an environment for the public sector to grow and attract the right people who can adequately manage the anticipated asset management challenges. Without the right kind of investment in the asset management capability in the NSW public sector we may end up in a very similar situation to the USA. During my time consulting in the USA across various states and cities, I encountered many public sector agencies without visibility of their asset portfolio and limited understanding of asset risks and challenges in service delivery, as summarised in Figure 3. The one common thread within these US public sector agencies was a significant lack of investment in their asset management capabilities. Figure 3 – Current asset management experience in USA (American Society of Civil Engineers, 2017) 3 Responding to these challenges In response to these challenges, and the asset management recommendations contained in the State Infrastructure Strategy 2018-2038, a new Asset Management Policy for the NSW public sector is being developed by Infrastructure NSW in collaboration with NSW Treasury and

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Hoverscape – Trendspek

1 PROJECT SUMMARY 1.1 Project Summary Hoverscape transforms raw drone data into detailed, digital asset replicas. Hoverscape allows inspections to be conducted on lifelike ‘digital twins’, boosting productivity and profitability for anyone responsible for the management or maintenance of physical assets.  We empower asset managers with a deeper understanding, to make better decisions, optimise strategies and improve collaboration. Our solution was derived through direct consultation with asset managers and consists of: 2 DESCRIPTION OF PROJECT 2.1 Development Philosophy The use of drones is becoming increasingly common within asset management. However, it’s clear that current use is limited to replacing traditional inspections methods with something faster and safer – simply a new tool to do an old job. The industry was missing a golden opportunity to collect valuable new data that could provide real insight. This shortfall was Hoverscape’s call to action. We are passionate about using drones to provide asset information that delivers new insights. We empower asset managers with comprehensive data on their asset that is detailed, consistent, repeatable and highly actionable. 2.2 Resolution and Detail Throughout 2018, Hoverscape was tasked with completing the routine inspection of a series of industrial warehouses. While the imagery proved useful, a request for even more detail was made to aid in identifying detail such as the corrosion on an individual bolt head. This request is common – managers often ask for greater levels of detail and are often told those levels are unachievable across large assets in their entirety. When using photographic data, current standard practice was to capture resolutions or ground sample distances (GSD) in excess of 20mm per pixel. Based on our client’s needs, we decided to target consistent captures at 1mm per pixel. The ability to deliver 3D digital reconstructions at this resolution was unprecedented and raised several challenges: We subsequently spent much of 2018 solving these challenges – something that no other organisation has achieved in a consistent and scalable way. Our solution to capturing the required quality of data was achieved through the development of a customised drone system capable of: Figure 1 – Example of ultra-detail 3D Model 2.3 Transforming photographic data into actionable data The inherent challenge using drone imagery for asset inspection and management is that they typically deliver a very large number of similar looking images. They lack context to asset position, they are cumbersome, and difficult to sort and manage. The result being they are of limited use and value to an asset manager for completing inspections and monitoring trends. (See Figure 2) Figure 2 – Traditional Image Delivery: Folders of Photos Figure 3 – Our Image Delivery: Clear and Intuitive 3D Model Without an existing solution available, Hoverscape set out to develop a platform to deliver 3D models in a way that is highly intuitive and simple to use. (Figure 3) The functions and features were developed in direct response to feedback fromclients – real asset managers with real assets. Many drone solutions are developed for drone operators, who are not actually the end user. For us, it was important to build the feature set that our clients needed to better manage their assets, derive value and create new efficient workflows. This development is called Trendspek – an asset inspection platform built to transform drone data into a complete solution. Figure 4 – The Trendspek interface (Note clicking image links to a video) Key Features of Trendspek Figure 5 – The Hoverscape | Trendspek workflow 2.4 Benefits of the Hoverscape | Trendspek solution Hoverscape’s complete solution provides an asset manager the ability to overcome existing challenges in inspection along with the ongoing management of asset information. 2.5 Collaboration We are continually told by our clients that collaboration between managers, stakeholders and contractors is difficult as no single point of reference exists. Emails, meeting notes, plans and reports are often missed, overlooked or misunderstood. This is despite the widely agreed importance of such collaboration and communication. Hearing this feedback, we included a powerful collaboration layer in Trendspek, allowing this vital flow of information to occur organically within the platform. Trendspek data provides information in context, that is easily understood by all involved. Stakeholders can share and chat live about asset data and analysis findings, enabling effective collaboration from anywhere, any time. Collaboration tools include: Figure 6 – Annotation specific chat functionality 2.7 Feature Deep Dive – Asset Timeline As a result of the collaborative approach we took to the project’s management and development, Trendspek contains a several unique features, to allow managers to gain a greater understanding of their asset than previously possible. Our Asset Timeline is an example of this; it provides two distinct methods to compare multiple captures of the same asset. This allows the manager to compare them in their entirety, to better identify trends. The first way to use Asset Timeline is with a slider that allows you move through historical captures viewing the same angle of the model while you slide through time. Annotations and measurements made on the model also move through time with you, making comparisons and trend monitoring seamless. This is demonstrated in Figure 7, and in the video linked by clicking the image. Figure 7 – Asset timeline Linear view (Note clicking image links to video) The second way Asset Timeline can be used is with synchronised side-by-side viewing. This feature can be seen in Figure 8, and in the video linked by clicking the image. Figure 8 – Side-by-side Asset Timeline (Note clicking image links to video) Asset Timeline is a tool that has received significant positive feedback from managers. It allows managers and engineers to be more proactive in understanding the history of a defect or issue and where that is likely to lead. Additionally, it provides a source of information that allows a company to adhere to the principle of being a “learning organisation”. Using tools like Asset Timeline, managers are able to learn more about their assets, and in turn are able to do more in terms of managing them. All of which

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Downer – Enabling Predictive Maintenance

Summary of the Project Downer Rollingstock Services (Downer RSS) embarked on a Predictive Maintenance Project in 2017. Apart from having to define the project, create a team and compete for budget; the engineering challenge in-itself was monumental – to use data from trains to predict the need for maintenance before it impacted service. Downer RSS expected to significantly reduce contract life-cycle costs, through reduced penalties for delays in-service and by changing its regular maintenance regime. Typically, a project of this nature is treated as an IT project. However, the framework created by the Asset Strategy & Innovation team, consisted of 4 key areas: an Asset Management Strategy, a technical study to determine data required from the train, a data analytics platform and a Reliability-Centered Maintenance model. The result has been a successful implementation of a complex project that is expected to save Downer RSS millions of dollars across its long-term maintenance contracts. Description of the Project Downer Rolling Stock Services (Downer RSS) built the Waratah Train fleet between 2010 and 2014, with the intention to remotely download large amounts of train condition data to perform condition-based maintenance. Downer RSS produced a number of applications that would be able to manage the large data-sets generated by the train, with train sub-system data transferred to an ICT Shore system to interpret and alert of faults. Over the next few years, Downer RSS embarked on several projects to evolve those applications to the next generation of analytics and data-interpretation. The first of these attempts was driven by the engineering team to combine MMIS data from IBM Maximo with Passenger Train Condition Data in a project called MaxiMart. This project was driven by the need to address engineering investigation and data exploration for engineering change. Concurrently, Downer RSS also identified the need to develop an analytics platform that would combine several data sources into a singular platform on locomotives that they maintained, with the ability to write comprehensive business rules to manage and alert on asset condition. This project was called DownerWorld. This was a clear demonstration of sporadic technology initiatives that resulted from the traditional innovation approach. Neither project was able to be fully funded or supported within the business to achieve its stated promise. Having identified that the traditional innovation approach was not yielding true business value – Downer RSS changed its approach for the Predictive Maintenance Project in 2017.  Use of Best Practice Asset Management Principles The Asset Strategy & Innovation team identified that the Predictive Maintenance project needed to be driven through Asset Management Principles. This involved reviewing the Asset Management Framework to ensure that the appropriate Top-Down and Bottom-Up approaches were resulting in a strategic grouping of initiatives to drive the right outcome. The strategic grouping would serve several purposes: This was shown to be a gap in the Asset Management Framework, and the Asset Strategy & Innovation team led a business change to add Business Improvement Plans to the framework. Figure 1 – An excerpt from Downer Rolling Stock Services’ Asset Management Framework that shows alignment between the Business Improvement Plans and the Strategic Asset Management Plan Applying Downer RSS’ Asset Management Framework, the predictive maintenance project was identified as an Asset Management Objective and was translated into Downer RSS’ Strategic Asset Management Plan (SAMP). This work drew on Downer RSS’ information flow charts and identified that there were clear gaps in three specific areas of the business.   Degree of Originality & Ingenuity of Solution Figure 2 – Example of level of detail of Train Cab and Saloon Air Conditioning Unit MADe model, showing the subsystem components and transfer of energy between components Although Downer RSS received significant amounts of data from its trains – this data was geared towards managing the current health of the train and not to predict maintenance requirements. There was a clear need to identify the specific data required to monitor asset condition at a sub-system level, as well as the context and operating environment of the asset. This exercise had not been previously completed in the Australian Rail industry and Downer RSS had to look at other industries to understand how this could be developed. Downer RSS found that the defence industry was most developed in this space – and leveraged a local Victorian small business to help develop causation models for complex sub-systems. These models would help determine the exact sensors and data required to identify the possibility of each failure-mode occurring on a sub-system. This formed defensible justification to procure, install and/or change sensors on its trains. Figure 3 – Homepage of Downer’s TrainDNA data analytics platform Once Downer RSS had identified the right data that needed to be downloaded at the right frequency from the trains – Downer RSS needed to build a data analytics platform to ingest, analyse, interpret and alert its staff of identified predicted asset failures. Downer RSS had previously attempted building these platforms, with some attempts resulting in developing completely bespoke in-house developed software (very functional but difficult to support) versus others that were commercial-off-the-shelf (COTS) products with little to no customisation (high level of support compromising on the end-product which is expensive to customise).  Learning from its previous attempts, Downer RSS invested in the development of a platform that would be an appropriate blend of COTS products and internally supported customisation catering for flexibility in functionality and multiple asset types. The result was TrainDNA. TrainDNA is a highly-scalable asset-agnostic data-analytics platform. Its foundation is Microsoft’s software stack, that is packaged into a cloud-based, scalable, SAAS solution called Neuroverse by an internal Downer team: Downer Digital & Data Services (Downer D3S). Neuroverse hosts and manages the highly customised TrainDNA, which provides the functionality to manipulate big-data into real-time insights in a structured and well-designed user-interface for various user-groups: operations personnel that need to be alerted of a pending train failure, front-line engineers that need to investigate an endemic issue, and maintenance and design engineers who need to explore maintenance and design change options respectively.

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Victorian Department of Health and Human Services – Creating a clear line of sight with AMAF

1. Project Summary Property and Asset Services (PAS), within the Housing and Infrastructure Division of the Department of Health and Human Services (DHHS), is responsible for implementing the housing strategies aimed at ensuring Victoria has healthy social housing that meets current and future community demands. PAS is moving towards an agile Asset Management System (AMS) adapting to changes before they impact on its service commitments. To meet this challenge, PAS has embarked on an innovative approach to compare existing Asset Management (AM) practices against a new industry standard, train teams to think differently about asset management as an enabler, and then implement improvements that are delivering generational change. 2. Description of Project 2.1 Overview The Victorian Government has provided housing for the disadvantaged since the 1930’s. This role now resides with PAS by providing a portfolio focus on housing, as well as providing best practice leadership for future infrastructure planning and project delivery. PAS carries the responsibility for implementing  the Government’s homelessness and social housing initiatives. These initiatives are based on recognition that having a home can often provide people with the foundation to stabilise their lives, and better participate as part of an included community. PAS manages a large, diverse property portfolio with assets worth $23 billion, housing 85,000 households across Victoria, which directly benefits more than 165,000 people. In 2016, the Victorian Government’s Department of Treasury and Finance released the Asset Management Accountability Framework (AMAF) which requires all agencies to establish a framework that manages government asset portfolios to an industry recognised standard. AMAF is consistent with the principles of ISO 55000, but it has been tailored to align with the AM needs specific to the Victorian Government covering: This new requirement provided the opportunity for PAS to focus on its current practices and identify opportunities for improvement using innovative solutions. The intent from the outset was to develop lasting structure and governance that converted existing practices into agency knowledge, and develop new capability enabling gaps to be identified. To achieve this, PAS committed to mapping how it conducted its business now, compare that with a new and innovative enterprise process that meets ISO 55000 asset management standard, identify gaps in process and capability, and consequently train staff building new systems to imbed lasting and sustainable management practices. While organisations often create individual initiatives for system improvements, unless they are integrated into an end to end connected Enterprise Asset Management System (EAMS), improvements are often localised and short term. PAS recognised that if they followed this path, lasting system and cultural change was unlikely to be achieved. This is where a new set of Enterprise Asset Management Process Maps provided the key to bring these positive initiatives together. 2.2 Use of best practice Asset Management Principles The PAS Executive Team were early adopters of AMAF, recognising and supporting the opportunity for change. PAS commissioned an independent gap analysis against the 41 mandatory requirements within AMAF, approved the recommended improvement actions aligned with ISO 55000, and leveraged new industry processes standards wherever possible. One of the key AMAF requirements is the ability to demonstrate clear governance and process that connects the organisational requirements to actions delivering client services, i.e. “line of sight”. While elements of good process already existed throughout the organisation, a consistency of approach, and the relationship between AM activities and other parts of the business was not established to a level that was required by the Framework. PAS adopted the Enterprise Asset Management (EAM) process maps previously developed for the NSW Government as a baseline for reviewing its current practices and identifying improvements to traditional AM practices and related activities across PAS. The team chose these enterprise maps as they provided a full lifecycle view, were aligned with the requirements of AMAF and had been independently assessed by the Asset Management Council (AMC) as satisfying ISO 55000. 2.3  Degree of originality and ingenuity of solution – “Creating a clear line of sight with AMAF” The PAS executives implemented sustainable change and commenced the process by defining its current capability, identifying appropriate solutions, developing a realistic roadmap, and then committing the resources to deliver the roadmap. The main differentiator from previous programs was the commitment to develop an integrated EAMS driven by internal resources and supported along the journey by industry leading practices. The decision to use the EAM process maps was based on a recognition of its ability to meet all the organisations’ requirements while providing confidence through the confirmation by the AMC that the processes aligned to the ISO 55000 standards. A different approach: Connecting the day-to-day procedures to high-level process maps: PAS also avoided the common mistake of focusing effort on operational activities only. PAS undertook a top-down and bottom-up approach to fully analyse and capture the “as-is” process of the branch that included a strategic and planning view through to operational activity (procedures) on the ground. With this approach PAS was able to: Highlighting the interdependencies: Once existing procedures were aligned to the high-level EAM process maps, the teams within each unit could see how their work was spread across the asset lifecycle and identify similar or correlated work other teams in other units were performing. The boxes that have a combination of two colours indicate inter-dependencies Creating lean processes: By viewing similar procedures followed by individual teams working together within an end-to-end EAM process, any duplication of processes became clearly visible. This initiated inter-unit conversations to consolidate processes and eliminate duplication. This improved information and knowledge sharing among business units, and improved consistency across the business. PAS is now focusing on eliminating unnecessary and improving inefficient processes. Bringing the RACI Matrix together with process maps: Historically, roles and responsibilities were identified on a project basis. As part of the process mapping exercise PAS also implemented the RACI assessment tool (Responsible, Accountable, Consulted and Informed) for the high-level process and subsequently for each procedure. This eliminated confusion over responsibilities and helped the teams to understand where and how stakeholders contributed throughout the process. This assisted

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NSW Department of Education & AssetFuture – Innovation Through Technology

EXECUTIVE SUMMARY In 2013, the NSW Department of Education (DoE) commenced a journey to understand the maintenance backlog across 2,200 schools. By July 2018, NSW DoE were able to confidently project requirements for current and future funding of maintenance and document functionality across all schools using machine intelligence. Using Asset Management best practice around data acquisition and interpretation methods, the DoE created a condition and functionality index for all NSW school assets. The DoE has improved its ability to project current and future funding needs, prioritising investment decisions. In early 2019, the NSW Government committed to wiping the maintenance backlog to zero by June 2020. PROJECT FRAMEWORK DATA STANDARDS Best practice asset information management is underpinned by information and data standards that provide a consistent understanding of the requirements to support collection, storage and interpretation of data to support strategic decisions. This understanding allows a clear line of sight between strategy and operations. Working with the AssetFuture platform DoE was provided with a clear set of in-built data standards consistent across the entire technology ecosystem. These standards cover data fields including: DATA CAPTURE The data acquisition team were trained in the application of the condition measurement methodology which varied based on the type of asset being captured. A predefined condition scale was calibrated in-line with specific degradation characteristics which were also referenced within the data capture device. This reduced the variation caused by human judgement when assessing asset condition, leading to increased quality of the data acquired. DATA CONSISTENCY – ACCRI Having a consistent method to assess condition, risk and service levels for each school within the portfolio, enabled comparisons to be made across NSW schools for the first time. This provided the confidence to make budget allocation decisions across an extensive asset portfolio. AssetFuture’s Asset Condition and Criticality Index (ACCRI) methodology made comparison of risks and service levels across an extensive set of asset classes a simple process, and was only possible through accurate asset information. DATA MAINTENANCE – GOVERNANCE AND UPKEEP Prior to this project, upkeep of asset data over time was extremely challenging leading to a partially informed view. Implementing the right governance arrangements in the form of platform access rights as well as stakeholder accountability and monitoring compliance with data standards, enabled a level of data currency to efficiently carry out annual planning and budgeting activity as well as adjusting annual plans based on the latest “live” information. Best practice has been implemented for data management, ensuring that interpretation of data is giving a clear line of sight between strategy and operations: Additionally, data currency has moved to a position where all data is now captured and updated in the AssetFuture platform to maintain a live and current dataset in the ecosystem to enable accuracy around decision making. INTERPRETATION OF DATA The outcomes of this project were linked to the interpretation of quality data sets. Using AssetFuture’s Lifecycle prediction algorithms to inform decision making for each schools’ portfolio of assets, was a key outcome. DoE now has a comprehensive interpretation of: CREATIVITY OF THE SOLUTION The scale of the level of data acquisition required meant that creative solutions were applied to existing data sets and acquisition of new data. The DoE utilised many internal bespoke systems such as AMS (Asset Management System) for spatial management, RPM (Routine Planned Maintenance) for works maintenance, and new Asset Intelligence with AssetFuture. This data was merged, and additional data collected using different data capture techniques, with a consistent approach across all asset classes to support evidence-based decision making. Drone imagery was used to assess defects and the creation of a new data set that was complete to align modelling with business strategy: PROGRAM AND PROJECT MANAGEMENT In a project of this size with a large number of assets, stakeholders numbered in the thousands. Stakeholders included more than 2,200 Principals of geographically dispersed schools, teachers, and over 750,000 students. Skillful management of these specialised stakeholders was critical to minimise disruption, and was achieved in the following ways: VALUE FOR NSW DoE AND STUDENTS Previously it was very difficult to align annual budgeting to the needs of students across NSW. The state-wide funding allocation model is now based on best practice Asset Management principles, having full consideration for asset cost, risk and performance. For NSW DoE, application to Treasury for funding is based on real-time interpretation of quality data ensuring: The implementation of the Lifecycle technologies has been one of the key factors in budget increases of more than $1 billion over the forward estimates for students attending schools in NSW. There has also been a reduction in risk from poorly maintained learning spaces and enhanced learning environments. International research has shown there is a direct link between the condition of assets and learning outcomes. NSW DoE AND ASSETFUTURE – EXPERTS IN PARTNERSHIP The success of the project over two assessment cycles is largely due to the bringing together of a highly motivated team of subject matter experts who were able to use their expertise: PROJECTIONS, SCENARIOS AND PERFORMANCE Interpretation of data from the AssetFuture platform enabled DoE to confidently project the funding requirements for 2,200 schools in NSW. Scenario planning was used for multiple planning parameters, as well as functional performance indices. Drone technology was utilised for defect and condition assessment for roof surveys. LCC Maintenance Projection – Current and Future Maintenance Projection (sample of schools). Shows liability by year and asset class. Scenario Analysis – Ability to vary planning parameters to simulate various funding/maintenance scenarios. Functional Performance – Functionality indices allow investment to be prioritized across asset classes. Drone Technology – Drone technology for better resolution of maintenance issues on high roofs. Trees Validation – Validation of tree audits as requested by the Coroners court. Scenario ACCRI – Risk matrix to assist investment planning decisions. Data Transfer – Maintaining currency of data by updating after all maintenance and capital works projects.

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Auckland Council – Smart Procurement for Facilities Management

Integrating a Performance- and Outcome-Based Outsourcing Strategy in Auckland Council 1 Summary Auckland Council (AC) was established in November 2010 after amalgamating 8 territorial authorities and serves a population of 1.6 million with an asset base of over $56 billion. Project 17 (P17) was initiated to develop a new maintenance delivery model for community assets, replacing thirty-eight facilities management contracts delivered by twenty-nine suppliers worth over $150 million per annum, all expiring June 2017.  P17 overcame the challenge to rationalise different service level agreements (SLAs) and key performance indicators to bring about alignment with the operating model of the new council or the current geographical / political boundaries. 2 Introduction Community Facilities (CF) was established in November 2015 after consolidating several asset management functions across Auckland Council.  With 400 staff, CF is responsible for maintaining $11 billion worth of community assets, which comprises of 5,000 parks (500,000 ha), 3,000 community and corporate buildings (400,000 m2) and assets along 3,243 kilometres of coastline, on all streetscapes and town centres. Tasked with delivering P17 in under 12 months, CF had to redefine the levels of service, develop a new operating model by re-organising over 300 staff and reconfiguring its asset management system. Under the new model, seven main suppliers are delivering three main types of contracts (full facilities, arboriculture, and ecological) across five service areas that were aligned to 21 local board boundaries (Figure 1).  Several minor specialist contracts such as pool plant and security were excluded from P17.   Figure 1- Service Areas and Local Boards In addition, the contracts were based on Council’s Smart Procurement Framework that enabled multiple outcomes (e.g. various financial or/and non-financial results in the procurement cycle. Incorporating key performance indicators (KPIs) that not only track quality and timeliness of maintenance work, suppliers are also required to meet social/community and environmental outcomes.  An example of a social outcome is the use of small local suppliers on the Hauraki Gulf Islands to deliver simple trade services or developing a Community Workforce and Development Plan that enables targeted apprenticeships, local employment, and training opportunities.  Examples of an environmental outcome include a reduction in agrichemical use or reduction of water and energy usage.   3 Strategic Context P17 has enabled a paradigm shift in council’s approach to establish complex in-house and externally procured services and most importantly, how to maximise community and commercial outcomes through a collaborative and strategic approaching with suppliers. CF facilities management function is delivered by both internal staff (e.g. contractor audit, project management) and external providers. The previous suppliers were mainly ‘transactional’ or ‘prescriptive’. Schedules were agreed between suppliers and council, such as how many times toilets were cleaned, or parks were mowed.  As such, AC had limited flexibility to respond to changes to the use of a facility or account for unexpected weather events; or respond effectively to unplanned service level variations. Conversely, the new full facilities contract is now outcome-based where AC and contractors have a common purpose, moving from providing or receiving a service to ensuring a result through a lump sum pricing agreement. For example, suppliers are required to meet agreed outcomes for rubbish bins to be not more than 75 per cent full at any time, as opposed to just following fixed work schedules. Most importantly, a supplier has ownership of an entire service area to respond to all maintenance issues; where previously multiple suppliers worked on the same site and even similar asset groups. Successful implementation of a multi-service result-oriented contract framework meant that CF had to ensure that the new agreed levels of service standards and key performance indicators could be adequately managed or controlled through the right organisation / managerial structure and asset management systems support. To achieve full integration, CF had to initiate both internal and external changes simultaneously in relation to people, processes, and systems within the organisation as well as suppliers, politicians, communities and other key stakeholders. Hence, standardisation of data, levels of service, asset performance and contractors’ performance were implemented holistically across services, assets, and the environment to diminish any discrepancies in the interpretation of results or standards; to provide transparency and certainty; to establish consistent references and benchmarks internally and externally. CF was able to realise the benefits of effective use of synergies, economies of scale and technical capability. Subjected to funding constraints and rigour of Council’s procurement and project management evaluation frameworks, the project execution plan was approved in late 2016 following a comprehensive business needs analysis, strategic assessment, identification of detailed risks and issues registers, all interdependent on two other major restructure and systems projects. These two projects with separate governance and management structures affected over 5,000 staff and involved AC core enterprise asset management systems – GIS and SAP.   Figure 2 – Project 17 Governance and Management Structure P17 governance (Figure 2). was provided by a Steering Group composed of senior staff across several departments to ensure deliverables at each milestone met business needs (Figure 3). Business owners provided additional resources when required throughout the project lifecycle. Subject matter experts and workstream leads held daily or weekly meetings to report on any deviation from planned or unforeseen issues that had to be resolved almost immediately. Figure 3 Project 17 High Level Roadmap & Milestones Each workstream leads were responsible for change management, stakeholder engagement and communications. Feedback loops were well established at each stage of the Project to ensure there was confirmation from different stakeholders before proceeding to the next stage. Workstream leads were also required to work with other Project Managers because of significant interdependencies between workstreams and different projects across departments, e.g. IT/systems upgrades, organisational restructures, asset portfolio changes. The Project employed different communication tools to all stakeholders. Regular reporting to the Executive Leadership Team, Governing Body and Strategic Procurement Committee was required throughout the project lifecycle. By applying a top-down and bottom-up approach of sharing information, the Project enabled closer collaboration between internal and external stakeholders which included Council staff, community groups, contractors, and politicians. Introduction to new enterprise

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Auckland Council – CFAME: Asset Information System Enhancement

Enhancing Community Facilities asset management capability through integrating strategic, tactical and operational asset management with asset systems capability.   1 Summary Community Facilities (CF) was established in November 2015 after consolidating several asset management functions across Auckland Council responsible for an asset portfolio of $11 billion made up of over 4,000 parks (500,000 ha) and 3,000 buildings (400,000 m2).  The CF Asset Management Enhancement Project (CFAME) was initiated in 2016 to speed up the availability of vital information for decision making and support asset management using the latest technologies and advanced analytics. Informed by the Asset Information Strategy, CFAME success was attributed to a holistic and structured approach to input-analysis-output of raw data, converting it to information, then knowledge and finally intelligence. Figure 1- Asset Information Strategy Key Elements Made up of three phases staged over a period of five years beginning June 2016, the deliverables of the Project are (Table 1): 2 Overview 2.1 The Challenge Apart from to the strategic issues and the operational risks of forming a new department, CF was also about to establish a full facilities management contract ($150m per annum), transitioning thirty-eight different maintenance contracts delivered by twenty-nine suppliers to seven main suppliers delivering three main types of contracts (full facilities, arboriculture, and ecological) across five service areas aligned to 21 local board boundaries (Figure 2). The new data structure had to incorporate not only known asset attributes but also had to factor in future levels of service definitions and maintenance strategies.  At the same time, the department of over 300 staff was undergoing organisational restructuring with the risk of losing individual asset knowledge not captured in any systems. The risks escalated when it was discovered that the data collected over time during the asset lifecycle by different departments before CF was formed were of varied standards, quality, consistency and completeness; and held in different systems, previously used for different purposes and did not align to the current CF operating model. Figure 2- Service Areas and Local Boards 2.2 The Approach With the above considerations it was imperative that CFAME had to integrate relevant useful information promptly to convert it quickly to knowledge that aligned with the department’s goals and objectives of its new operating model and Council’s intentions.  The quality of asset management (AM) decisions, such as whether to replace or to maintain an aging asset, can only be as good as the information used to support the decision-making. To mitigate strategic, tactical, and operational risks concurrently, it was decided that instead of working around data inefficiencies, a better outcome would be achieved through an enterprise-wide project to reconfigure the existing asset data.  A small team was put together to re-define the asset meta-data dimensions and selectively prioritised the cleansing of critical master data that will be used to build asset renewals and operational expenditure models. Agility and flexibility were called for even in the earliest stages of reconstruction of the meta-data. Unlike previous implementation where the IT would set all the data parameters regardless of business needs, CFAME was led by the business (i.e. CF) which then engage the council IT specialists in a collaborative manner where for instance, staff from both departments were co-located in the building from time to time to minimise time lag in information exchange via face-to-face interaction as opposed to lengthy emails, phone calls or scheduled meetings.   Knowing that lack of awareness, lack of trust and fear of change are common behaviours inhibiting the successful implementing of any EAMS or Asset Information Strategy (AIS), a key part of our successful implementation was reaching out to current and potential users of the new information and EAMS capability. During the engagement process, it was important to acknowledge that the importance of different data types can greatly shift over time –information considered not-critical to the organization five years ago is now crucial, so we needed to identify the lost value in our data gaps and rectify accordingly. Bottom-up evolution for a culture change that regarded asset information as a strategic asset require buy-in from all staff. Other stakeholders then needed to be sold that disruption to operation (up to 12 months) as a result of changes to the asset meta- and master-data was the only option available so that we could move away from the status quo of cobbling together information from inconsistent asset hierarchies, incomplete asset attributes, and missing critical information. To address the above challenges, CFAME adopted both top-down and bottom-up approach. Top-down decisions were centred around trade-offs between immediate data accuracy and the costs of achieving the benefits were considered against the decisions that could be made with the data. CF aims for higher data accuracy over time when additional funding is made available and when new technologies are introduced. The level of detail and complexity of information as defined in the Asset Information Strategy was based on asset criticality in relation to health & safety, service impact, legislative/regulatory and systems significance in terms of systemic failure in addition, as part of the organisation restructure, key roles and responsibilities were assigned throughout the department for information capture, analysis and reporting. For example, there is a team of asset information specialists and advisors tasked with data collection on site and converting technical information provided by architects, planners and project managers into a useable format in GIS. There is a separate decision support team responsible for ensuring the right information is available for decision makers. Figure 3- Asset Management Considerations and Information Flows The bottom-up approach focused on how the data and information can be effectively utilised horizontally across different business units as well as vertical functional areas associated with lifecycle management of the assets. 2.3 Project Management Project governance was provided by a Steering Group made up of senior staff across five departments to ensure deliverables at each milestone met business needs. Inputs and outputs of the Project was linked to several projects to rationalise limited resources and capability within the department. Each workstream leads were responsible for change management, stakeholder

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