Strategic Asset Management Framework

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Strategic Asset Management Framework Strategic
Intent Document
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Strategic Intent Document Background and
Introduction

• Strategic Asset Management
• Strategic Asset Management focuses on the optimal
  alignment of assets with the requirements of an
  organisation to enable maximum return of value.
• Organisations deploying principles of
  best-practice are rapidly embracing concepts such
  as whole life planning life cycle costing
  planned and proactive maintenance and alignment
  of asset management strategies to the long term
  goals of the organisation. In essence the
  effective management of assets not only supports
  an organisations core business but can return
  significant value to the organisation.
• The effective management of assets therefore
  requires a robust strategic framework which
  establishes
• Criteria and standards for the control and
  management of assets.
• Strategies and processes for asset expansion
  improvement management and disposal.
• Alignment with the long term goals of the
  organisation.
• Interrelationship with the organisations
  strategic planning process including where
  possible multiple usage.
• An comprehensive performance management
  framework
• ECU Strategic Asset Management Project The
  Strategic Asset Management Framework (SAMF) shall
  provide a comprehensive foundation for the
  effective implementation of asset management
  with a clear focus on both the short term
  management of assets and the long term strategic
  use of assets. The framework aims to support the
  realisation of the Universitys vision and goals
  ensuring that assets support the delivery of
  ECUs core business.
• The effective deployment and utilisation of the
  Strategic Asset Management Framework represents a
  key factor in the ongoing operation of Edith
  Cowan University. This document outlines our
  Strategic Asset Management Framework and aims to
  convey the goals and principles upon which the
  University manages its planning deployment and
  management of assets.

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Strategic Intent Document Overview Strategic
Asset Management Framework
The Strategic Asset Management Framework is
designed to align with the strategic objectives
of the University. This enables both ongoing
support of strategy together with greater return
on investment.
The below diagram demonstrates how the SAMF
Framework is driven by the Universitys mission
with each element position within the hierarchy
to contribute to the success and sustainability
of Edith Cowan University.
Figure 1 Strategic Asset Management Framework
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Strategic Intent Document The Guiding Principles
The Guiding Principles serve as Edith Cowan
Universitys specific asset management and
improvement strategic objectives. The following
were identified through discussion with key
stakeholders in Phase One of this project
To Support the ECU Mission and Strategic Goals
1
To Deliver Value for Money through the Assessment
and Alignment of the Asset Infrastructure to
Service Needs and Priorities
2
To Deliver and Communicate an Efficient
Consistent and Transparent Asset Management
Process
3
To use Public and Commercial Benchmarks and Best
Practices to Inform Decision Making
4
To Maximise Asset Utilisation
5
To Employ Life Cycle Cost Benefit Analyses
6
To Generate and Manage Appropriate Levels of
Investment and Funding
7
To Manage the University Assets by Reducing the
Negative Impacts upon the Environment
8
To Manage an Effective Asset Retirement Plan
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To Employ Balanced Performance Measures
10
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Hierarchy
Strategic Intent Document Strategic Asset Plan
Implementation Framework
Figure 2 Strategic Asset Management Plan
Implementation Framework highlighting three major
streams.
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Scope
Strategic Intent Document Capital Expansion and
Improvement Plan
The Capital Expansion and Improvement Planning
process refers to the deployment of new capital
assets or the overhaul and/or significant change
to capital assets. The process addresses a range
of key factors that influence both the initial
decision to execute a capital project together
with the management of these projects. Drivers to
this type of activity may include long term
service delivery requirements student and staff
trends periodic refurbishment life cycle
costing and the impact on future budgets
strategic plans and the risk of change to service
delivery requirements. Descriptions of boxes to
left are listed below
Planning Managers to undertake regular
departmental consultation with Services and
Faculties to determine current and future capital
requirements based on strategic needs proposed
demand and current utilisation.
Perform Feasibility Assessment on proposed
expansion or improvement projects to build
Business Case that justifies need proposed
capital expenditure and impact upon strategic
delivery.
Undertake comprehensive evaluation of proposed
new assets to justify inclusion within the
overall Strategic Asset Capital Investment Plan.
Develop sufficient definition to establish a
clear understanding of the project a plan for
its implementation and whether the project is
ready to proceed into detailed design and
documentation. Enter into delivery management if
approved.
After commissioning has been completed to
undertake a review of the projects readiness for
service. Once in service to apply established
KPIs to efficiency and utilisation.
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Strategic Intent Document Asset Maintenance Plan
Background
Asset Maintenance aims is to ensure that assets
continue to support the strategic objectives and
service delivery requirements. Maintenance itself
also ensures that the capital investment in the
asset is preserved consistent with its age and
market value. Planning should occur at the
strategic level as well as at the delivery
level to ensure that the maintenance program
supports the Universitys strategic direction and
service delivery model. Descriptions of boxes to
left are listed below
Through setting asset condition standards in line
with functional purpose and monitoring against
these standards provides a justified maintenance
demand throughout the asset portfolio. This
maintenance demand can then be costed and issued
for funding approval.
To prioritise the maintenance activities that
require action in line with both the Strategic
Maintenance Plan and allocated Maintenance budget.
To assess the current maintenance backlog and
update if necessary depending upon budget
allocation and service need and review in terms
of effect upon service delivery.
The process of entering into appropriate
arrangements with both internal University
maintenance staff and outsourced maintenance
service providers for the provision of
maintenance services in accordance with
prioritised and strategic need.
To monitor and review maintenance performance in
accordance with the provisions of the Strategic
Maintenance Plan. This includes the review of
Program Management Service Provision and
Maintenance Outcomes.
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Strategic Intent Document Asset Retirement Plan
The fundamental aim of effective asset retirement
is the redistribution of value to support the
development or management of other University
assets or activities. Effective asset retirement
focuses on ensuring that underperforming or
surplus to requirements assets are clearly
identified in a timely manner. Further a range
of alternatives are then considered with respect
to their ongoing management and/or disposal.
Retirement of assets in accordance with a
clearly outlined plan ensures the removal of
potential maintenance and financial
inefficiencies whilst reinvestment may in turn
provide substantial benefit to the University
its customers and stakeholders.Descriptions of
boxes to left are listed below
To identify assets as surplus to known and
expected service delivery requirements that are
based upon the criteria of demand functionality
physical condition and financial performance .
The process of authorising an asset to be retired
based on the review of balanced performance
measures financial implications and strategic
requirements of the University
To define the preferred retirement program
determine timescales and confirmation of the
desired outcome.
To determine the financial responsibilities of
the retirement process and focus revenue within
strategic plans for enhanced service delivery
To monitor and review retirement performance in
accordance with the provisions of the Strategic
Disposal Plan. This includes the review of
Program Management Service Provision and the
performance review of external contractors.
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Strategic Intent Document Summary and Tools

• Summary
• The Strategic Asset Management Framework provides
  a comprehensive foundation for the effective
  implementation of asset management activity
• Clear focus on both the short term management of
  assets and the long term strategic use of assets.
  
• The Framework aims to support the realisation of
  the Universitys vision and goals ensuring that
  assets effectively support the delivery of our
  core business.
• A range of processes policies and templates have
  been developed to support the effective
  implementation of the Framework (see right).
• These tools provide a clear outline as to how the
  Framework is designed to operate whereby the
  intention is comprehensive planning leads to more
  effective management processes.
• Any questions or feedback with respect to this
  document or the Strategic Asset Management
  Framework please contact the following
  individuals.
• The Strategic Asset Management FrameworkPeter
  Vincent (x2303)
• Capital Expansion and ImprovementRon Hewitt
  (x2275)
• Asset Maintenance Frank Collins (x2901)
• Retirement Management Cameron Burnett (x2398)

• Strategic Asset Management Framework Documents
  Tools
• Strategic Asset Management Framework
• Processes
• Capital Expansion and Improvement
• Maintenance
• Retirements
• Templates
• Long-term Plan (approx. 20 years)
• Mid-term Plan ( approx. 10 years)
• Short-term Plan ( approx. 5 years)
• Business Case
• Feasibility Assessment
• Governance
• Governance Matrix
• Organisation Alignment
• Financial Delegations
• Performance Reports KPI Dashboard