ADOPTING BEST PRACTICE ASSET
MANAGEMENT & ACHIEVING THE PAS 55
STANDARD
Khamis Salim Hamad Al-Romaimi, Project Manager – A...
ADOPTING BEST PRACTICE ASSET MANAGEMENT
&
ACHIEVING THE PAS 55 STANDARD
Ali Said Al-Hadabi
*
General Manager, OETC
Khamis ...
The internationally recognised standard for Asset Management is the British Standards Institution’s
Publically Available S...
INTRODUCTION
The Oman Electricity Transmission Company,
OETC, has recently started to develop its’
Asset Management capabi...
THE BENEFITS FROM ASSET
MANAGEMENT
Adopting a formal approach to Asset
Management has demonstrably improved utility
perfor...
Management techniques can be used to
address all of them.
In most cases, it has been the pressure to
deliver financial per...
This approach influences performance to the
greatest degree through positioning.
Positioning is about maximising stakehold...
Australia
Australia has implemented similar reforms
against a background of increasing community
expectations as to the qu...
PAS 55 is rapidly being adopted around the
world as the standard for Asset Management.
The UK Electricity Regulator OFGEM ...
companies based on voltage level
classification within around 29 numbers world
class transmission companies. The ITOMS
ben...
Figure 6. Typical Scoring of a PAS 55
Clause
Detailed Capability Assessment
The next element of the Review is related to
t...
 A track record of undertaking similar
projects within the region; and
 Local knowledge of the culture and local
environ...
[5] Urquhart A, Gaha J & Chilton R, “Asset
Management Around the World”, WERF
2005
[6] International Infrastructure Manage...
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Adopting best practice asset management

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Adopting Best Practice Asset Management & Achieving The Pas 55 Standard
Khamis Salim Hamad Al-Romaimi, Project Manager – Asset Management Development, OETC
Ali Said Al-Hadabi, General Manager, OETC
Dr Richard Chilton, Director, QASR
Tim Young, Director, QASR

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  1. 1. ADOPTING BEST PRACTICE ASSET MANAGEMENT & ACHIEVING THE PAS 55 STANDARD Khamis Salim Hamad Al-Romaimi, Project Manager – Asset Management Development, OETC Ali Said Al-Hadabi, General Manager, OETC Dr Richard Chilton, Director, QASR Tim Young, Director, QASR assetmanagement.iirme.com ■ +971 4 407 2526 ■ register@iirme.com
  2. 2. ADOPTING BEST PRACTICE ASSET MANAGEMENT & ACHIEVING THE PAS 55 STANDARD Ali Said Al-Hadabi * General Manager, OETC Khamis Salim Hamad Al-Romaimi, Project Manager – Asset Management Development, OETC Dr Richard Chilton, Director, QASR & Tim Young, Director, QASR SUMMARY Utilities around the world are moving away from conventional methods and organisational structures aligned to operations and maintenance to one’s that focus on optimising their assets. In so doing, they are establishing a deeper understanding of their assets and the role they play in delivering customer service. This new way of working is called Asset Management. It is underpinned by the fundamental objective for all utilities being to provide a high-quality service to their customers by effectively and efficiently managing their assets. Asset Management has been developed over a number of years by leading utilities in New Zealand, Australia and the United Kingdom, and is now regarded as the most effective model for the management of asset-centric businesses. At a high-level, it is best defined by the work in the groundbreaking International Infrastructure Management Manual. Asset Management is essentially a set of key principles that define how to undertake asset-related activities and how an organisation should be structured to most effectively deliver these. It is embodied in organisational structures, business processes, establishing responsibilities and policies, and with support tools. Collectively, these elements are referred to as the Asset Management System. The application of Asset Management to an organisation depends on the type of organisation, the local environment and the maturity of the organisation. The detailed implementation will change from organisation to organisation, based upon the specific conditions and company strategies. However, the principles should always remain the same.
  3. 3. The internationally recognised standard for Asset Management is the British Standards Institution’s Publically Available Standard, PAS 55: 2008. PAS 55 provides a valuable means of benchmarking company performance in all of the major areas of Asset Management. PAS 55 is not specific to any industry, but applies to any organisation with physical assets. It sets out the high-level principles of Asset Management. However, the lower level principles and the practical implementation of these are usually best understood by the people who have actually worked in leading asset management organisations preferably in the same type of utility. Experience from the UK electricity utilities has shown the importance of supplementing the PAS 55 standard with practical asset-level knowledge and expertise in how to change organisations. However, If a company can achieve accreditation to PAS 55, it demonstrates that the organisational structure, processes and systems are consistent with international best practice. The UK Electricity Regulator OFGEM for example, now requires all UK distribution companies to have achieved PAS 55 accreditation and report ongoing performance against the standard on an annual basis. Utilities across the world are now intending to gain PAS 55 standard within the next few years. Several utilities within the GCC Region are expected to achieve the standard within the next five years. Organisations wishing to adopt Asset Management and to implement PAS 55 usually start with a Capability Review using utility experts with knowledge of utility best practice and the implementation of change within organisations. In this paper we will show how the Oman Electricity Transmission Company has worked with utility practitioners, QASR, to assess the current capabilities of the organisation and then to develop a practical Change Plan to adopt Asset Management and hence improve the performance of the organisation. In this paper, we will share our experiences and make recommendations to assist other companies also wishing to embark on the adoption of Asset Management. KEY WORDS Asset Management, PAS 55, Change Management, Utility Management, Electricity, Water. * Oman Electricity Transmission Company, PO Box 1224, Al-Hamryia. Postal Code: 131, Muscat, Sultanate of Oman Email: Ali.alhadabi@omangrid.com, GSM: +968 928229666, Fax: +968-24573222.
  4. 4. INTRODUCTION The Oman Electricity Transmission Company, OETC, has recently started to develop its’ Asset Management capabilities, and therefore improve it’s overall performance to best practice levels. We see the adoption of Asset Management as a journey and we are learning from others that have travelled the journey before. Our paper shares the reasons why OETC has started this process, our experience so far, and some recommendations for others who wish embark upon the journey. WHY ADOPT ASSET MANAGEMENT? Governmental and private utilities manage the world's largest portfolio of infrastructure assets on behalf of their communities. This infrastructure constitutes a major investment made in the expectation that there will be improved living conditions and greater prosperity. Moreover, the maintenance of aging and failing infrastructure is an ongoing challenge. Infrastructure studies undertaken in the UK, Australia and the US have shown a common theme [1]; that the state of existing asset infrastructure is deteriorating and that there is a significant backlog of investment required to ensure that the utilities can continue to deliver sustainable services to their communities. Societies across the world require that the “owners” of the assets apply the best management skills to ensure long- term sustainable and economic levels of service to customers. These factors are also affecting the GCC region. Many GCC countries require large capital investments in new infrastructure to provide effective supply of electricity and water and disposal of sewage and wastes from their rapidly growing populations. We are also starting to see the deterioration of the existing asset base following the large investments made over the last forty years. A formal approach to the management of infrastructure assets is therefore vital for utilities if they are to manage the infrastructure in a cost effective and sustainable manner [2]. Utility leaders around the world are now using Asset Management to help them achieve this. WHAT IS ASSET MANAGEMENT? Asset Management is a confusing term and can mean different things to different people. Most knowledgeable people would, however, agree with the following statements:  Asset Management has the fundamental objective to provide a high-quality service to customers by effectively and efficiently managing the assets. It is therefore essential to be able to balance risk, cost and performance at all levels within the organisation, making sure that investments are cost beneficial to the stakeholders;  Asset Management is a structured approach that covers all assets, not just the infrastructure assets such as cables, pipes, roads etc, but also the staff, IT systems and information that an organisation needs to manage the assets. It covers the whole organisation and all employees are involved and need to understand Asset Management;  Asset Management is knowing what assets are owned, their location, condition and expected lives. It is understanding the criticality or importance of the different assets, and knowing what service levels customers and stakeholders want;  It is about understanding the risks of different assets failing and the consequences on the service to the customers as a result;  Asset Management enables justified decisions to be made that balance investments against service, on how and when to: buy, build, maintain, operate and dispose of assets;  It is having processes in place to establish priorities and allocate funds based upon the risks facing the organisation. Asset management is being able to justify the short and long-term funding requirements associated with the assets; and lastly  It is not a system you can buy. It is a business discipline and culture that covers: people, process, data, technology: Asset Management is a journey and requires a change in mindset.
  5. 5. THE BENEFITS FROM ASSET MANAGEMENT Adopting a formal approach to Asset Management has demonstrably improved utility performance in terms of cost effective operations and improved levels of service to the community. There are, however, several different benefits associated with the adoption of Asset Management, Table I. Table: I. Benefits of Asset Management More effective and efficient operations and investments Improved relations with external stakeholders Improved customer satisfaction Enhanced reputation and customer perception Higher levels of compliance Direct links established between investment decisions and the impact on customer service More justification of investments leading to more appropriate levels funding Consistent approaches to decision-making based upon managing risk Better information & measures to justify decision-making, investments, and tariff setting Appropriate long-term maintenance of the assets Improved response to incidents A more proactive approach to managing the organisation with a focus on service Adequate and timely planning and investments for growth Clarity of roles, responsibilities and processes across the organisation THE ASSET MANAGEMENT MODEL A fundamental element of Asset Management is related to how all of the organisation(s) that provide the service to the customers divide the responsibilities and functions. The generally accepted method for defining this is known as the Asset Management model. The generic model consists of three roles: Asset Owner, Asset Manager and Asset Operator/Service Providers. The interaction between these key roles is shown in Figure 1. Figure 1. Generic Asset Management model It is rare for the Asset Management model to be adopted by an organisation in this generic and simplistic way. Rather, the model is customised to meet the specific requirements and objectives of the organisation concerned and is phased in and modified as the organisation matures. The implementation is based on a number of factors including the:  Overall strategic objectives;  Level and type of financial, performance or risk benefits required;  Culture and ability to accept and implement change;  Type and number of asset base(s) being managed; and  Regulatory and commercial environment. Almost all of the leading asset intensive companies have undergone re-organisations based upon the Asset Management model. Moreover, they have usually re-organised every three to five years to strengthen the model and as a means to drive further performance improvements. Having said this, it must be remembered that the organisational structure plays only one part in what makes an effective and integrated asset management organisation [3]. THE EVOLUTION OF ASSET MANAGEMENT Although there are several varied drivers for a utility to improve performance, Asset Asset Owner Asset Manager Service Provider(s) Maximises Return Maximises Effectiveness ‘The What’ Maximises Efficiency ‘The How’ Service Level Agreement or Contract Service Level Agreements or Contracts Income  Holds licences  Negotiates with Regulators  Manages Income  Manages Overall Investment  Manages the Asset Base  Defines Investment/Work to Deliver Performance/Risk  Manages Opex and Capex Programmes to Deliver Work  Delivery of Agreed Work to Time, Cost and Quality  May be Multiple Providers - split by Geography or Work Type
  6. 6. Management techniques can be used to address all of them. In most cases, it has been the pressure to deliver financial performance whilst reducing income or increasing performance targets that has driven the need to adopt more sophisticated management methods. For most companies, this has been the main impetus to develop an integrated approach to Asset Management [4]. The new techniques have focused on both making more effective investment decisions and in better justification of the levels of investment by improving communication with external stakeholders. The delivery of improved performance can be grouped into three generic methods. These are delivered through focusing on:  Efficiency;  Effectiveness; and  Positioning. The source and emphasis of performance in organisations changes over time. In general, as the organisation matures, the areas of improvement generally shift from efficiency though effectiveness to positioning. This change in emphasis is brought about not only by increased pressure on income or financial performance but also through the presence of more developed asset management capability. Performance Through Efficiency This approach has primarily sought to maximise performance through efficiency gains. Efficiency can be defined as achieving the requisite physical work on the asset base at the lowest possible cost. These gains are realised through, for example, increased productivity, improvements in the way the work programme was delivered, better procurement methods, and through using better materials. This is usually the first area where organisations identify areas for improvement. There are two main reasons for this. Firstly, the financial benefits from the improvement actions in these areas are very tangible and they can normally be delivered in the short- term. Secondly, the issues faced are common across many types of businesses, and so the systems and external support required are widely available and well known. Performance Through Effectiveness This approach principally influences performance through improvements in effectiveness. Effectiveness in this context is achieving the requisite performance from the asset base at minimum cost. As opportunities to improve performance through investment efficiency diminish, and also to ensure that pure efficiency gains are not achieved at the expense of compromising quality, companies begin to focus more effort on achieving effectiveness. Many organisations have looked at ways of continuing and sustaining performance improvements through more effective and intelligent targeting of investment. This has been the principle means of sustaining performance in the energy sector particularly through the management of risk. In this case, early capability was focussed on analysing the needs of the asset base through, for example, condition-based monitoring, failure prediction, more accurately identifying assets at risk of failing, and targeting investment accordingly. Investment effectiveness is also becoming increasingly more important in other infrastructure sectors as the efficiency gains are realised. Investment effectiveness is also about ensuring the right investment is made; repair versus maintenance, versus refurbishment or replacement and making the capital / operating investment trade-off on whole life costs grounds. In recent years a move to output-focussed effectiveness has been prevalent within many asset management organisations. Businesses are using their understanding of physical asset failures to determine the effect such failures will have on output performance, that is the performance that customers and external stakeholders perceive. It is then output failure rather than asset failure that drives investment need identification and selection. Performance Through Positioning
  7. 7. This approach influences performance to the greatest degree through positioning. Positioning is about maximising stakeholder benefits at minimum total costs to the business. An important aspect of strategic positioning is the ability to formulate and analyse different investment scenarios to ensure that the best possible position is presented to justify the funding requirements and subsequent charges to customers. For businesses where growth or consolidation opportunities are limited, the scope for return on investment improvements from purely an efficiency and investment effectiveness perspective has a finite limit. Arguably, making improvements in the way businesses position themselves to justify levels investment is where the biggest opportunities for future return on investment improvements and long-term sustainability lay. Improving Performance in the GCC Utilities Although every utility within the GCC is different, the region as a whole can be considered to have a different set of drivers and level of maturity to the utilities in the United Kingdom, Australia and New Zealand. Having said this, the GCC utilities still have the need to adopt Asset Management and use the same techniques to improve performance. However, the order of adoption and focus will be different. In general, the GCC utilities should focus on improving effectiveness first, then efficiency and then positioning. WHERE HAVE THE LEADING ASSET MANAGEMENT TECHNIQUES BEEN DEVELOPED? Asset Management techniques have been developed across many industries and countries. Its application to utility management was initiated in New Zealand and later in Australia. However, it really became established and developed from a largely academic basis to a practical means for driving performance improvements in the United Kingdom after privatisation and more effective regulation were established. New Zealand Since the mid-1980's New Zealand has undergone a period of far reaching structural reforms aimed at improving the internal efficiency of the economy and reducing the number of high-profile utility service failures. Public sector, including municipal, reform has been aimed at both reducing the role of government in the provision of goods and services, and improving efficiency and service. One key implication of this has been the requirement for municipalities to produce and adopt an Asset Management Improvement Plan, which outlines the timeframe and physical and financial resources required to improve Asset Management practices [5]. The National Asset Management Steering Group was formed in 1995 to develop and promote infrastructure Asset Management practices, policies and systems in New Zealand. This is an autonomous group, and its activities are funded by contributions from its member organisations, sales of asset management manuals and subscriptions to training seminars. Their key contribution has been the development of the International Infrastructure Management Manual [6], Figure 2, which provides municipalities with a comprehensive framework for complying with legislative Asset Management requirements. Figure 2. International Infrastructure Management Manual
  8. 8. Australia Australia has implemented similar reforms against a background of increasing community expectations as to the quality and extent of services provided by federal, state and local governments. In Australia the Asset Management concept was tied into municipalities by the Australian Accounting Standard 27, which requires infrastructure assets to be accounted for and included in financial statements. The regulatory environment in which municipalities and utilities operate varies from state to state, however there has been a focus on regulating the prices of utility services. This has led to utilities developing more robust Asset Management practices, and detailed Asset Management plans, to support pricing audits undertaken by the regulators. Australian municipalities and utilities are progressively improving their Asset Management approach but lack the national coordinated approach of New Zealand. However, state level regulators are progressively introducing more robust Asset Management planning requirements and practices to support pricing regulation. United Kingdom As a result of regulating the United Kingdom’s electricity and water industries in the 1970’s and 80’s, the utilities have adopted and driven best in class Asset Management more than any other country in the world. The regulatory model demands extensive and routine reporting of costs, operations and customer performance and the adoption of best practice methodologies. Over the last thirty plus years, this requirement has driven the utilities to significantly and transparently improve their performance, which in turn has led to the development of a more comprehensive and detailed Asset Management approach. It is generally accepted that the regulation of these companies has driven significant investment, improvements, and efficiencies that are unparalleled in Europe and across the world. Countries that do not work under this pressure cannot justifiable claim nor demonstrate being best in class. Recent, independent, international bench- marking exercises carried out on behalf of the water regulator, Ofwat, and other independent bodies demonstrate that the UK now delivers high-performing services at lower prices that outperform utilities across the world. This is why many countries around the world, including; Abu Dhabi, Singapore, Bulgaria and Oman are now adopting the UK regulatory model for utilities. Countries and industries that are just beginning to embark on Asset Management can benefit from the wealth of experience that has been gained around the world, particularly from the United Kingdom, New Zealand and Australia. PAS 55 AND ASSET MANAGEMENT Building upon the work in New Zealand and the practical experience from the United Kingdom on developing and adopting utility best practice, a standard for Asset Management has been developed. In 2004, the Institute of Asset Management worked with several leading utilities to publish a British Standards Institution’s Publically Available Standard, PAS 55: 2004, Figure 3. This was subsequently revised in 2008 [7]. Work is currently underway for it to become an International ISO standard within the next three years. PAS 55 has been translated into Spanish and has been applied to utilities in the UK, USA, Australia, New Zealand, Middle East and several other countries. Figure 3. PAS 55-1: 2008
  9. 9. PAS 55 is rapidly being adopted around the world as the standard for Asset Management. The UK Electricity Regulator OFGEM for example, required all UK distribution companies to have achieved accreditation by 2008, and since to report ongoing performance against the standard on an annual basis. If a company can achieve accreditation to PAS 55 it demonstrates that the organisational structure, processes and systems are consistent with international best practice. Some utilities within the GCC are expected to achieve the standard within the next five years. PAS 55 is essentially a framework of terms and definitions for the best practice Asset Management of physical assets, Figure 4. Figure 4. The PAS 55 Framework PAS 55 is universal and applies to all asset intensive industries, and is therefore intrinsically high-level. It also includes guidelines as how to adopt the framework and enables capability assessments to be undertaken and therefore accreditation to the standard. The framework is extensive and covers twenty- one separate areas grouped into seven main clauses: 4.1 General Requirements 4.2 Asset Management Policy 4.3 Asset Management Strategy, Objectives & Plans 4.4 Asset Management Enablers & Controls 4.5 Implementation of Asset Management Plan(s) 4.6 Performance Assessment & Improvement 4.7 Management Review PAS 55 provides a valuable means of benchmarking company performance in all of the major areas of Asset Management. However, it is not the solution to adopting Asset Management. It is a good start, but should be supplemented with the lower level principles and detail. The practical implementation of PAS 55 is best understood by the people who have actually worked in leading asset management organisations preferably in the same type of utility. Experience from the United Kingdom’s utilities has shown the importance of supplementing the PAS 55 standard with practical asset-level knowledge and expertise in how to change organisations. PAS 55 states what should be done, not how it should be done. More importantly PAS 55 does not show a utility how to adopt Asset Management and change it’s way of working. OETC’S EXPERIENCE OF ASSET MANAGEMENT OETC started introducing the valuable of the Asset Management as method and concept through participation in International Transmission Operation Maintenance Study (ITOMS) in November 2008. The ITOMS program is a learning lessons program by sharing other transmission companies experience and best practise. Some of the transmission companies within the ITOMS program are UK National Grid, Fingrid, Australia Western Power, News Zealand Transgrid, Transco Abu Dhabi, Oman Electricity Transmission Company…etc. OETC selected experience engineers as working team for the ITOMS program from each technical department in the company in order to collect, validate the benchmarking data before submitting the data to Transmission Benchmarking Group which facilitated by the UMS Group. ITOMS benchmark program is built to benchmark with other transmission
  10. 10. companies based on voltage level classification within around 29 numbers world class transmission companies. The ITOMS benchmark program output to operate at law cost and high service category which require preparing action plan following the benchmark results. After 2009 benchmarking results, the company prepared one action plan in order to improve the performance by operating at law cost and high services. OETC also following the benchmarking results created Asset Management Steering Committee which consists from all department managers in OETC with ITOMS working team. The company also conducted several training courses for the staff as well conducted international visits in order to learn the Asset Management from the transmission utilities ITOMS peers in GCC like Transco Abu Dhabi, News Zealand…etc. OETC in September 2010 joined the sector Asset Management working team which leaded by the Electricity Holding Company (EHC) in Oman. The sector output leaded to building Asset Management Strategy Document for the whole Omani Electrical unbundled companies which owned by the government, e.g (2) generation companies, (1) transmission companies, (3) distribution companies and (1) Rural Area Company. All the sector working team members are now PAS 55 certified from the UK International Asset Management (IAM). Since OETC has a vision to improve performance and has recently committed to adopt Asset Management best practice. In this process, we found that a useful first step was to undertake a Capability Review. This Review helped us to firstly, understand how well the organisation was working, and secondly, where and how we should make improvements. PAS 55 is a useful benchmark to use as the basis of the Review. However, the assessment must be more detailed than PAS 55, and specific to the industry and the local environment, drivers and culture. The Capability Review The Capability Review covered the following steps:  Assessment of OETC’s current capabilities against PAS 55 framework and guidance through a combination of document review and a series of interviews;  Further in-depth interviews and site visits in key areas of interest;  Review of the organisational structure;  Review of the IT systems;  Review of asset data and information;  Comparison of overall capabilities and organisational maturity against best practice;  Identification of corporate ambition;  Detailed assessment of the gaps and initiatives required to fill the gaps; and  Development of a Change Plan. The approach used by the consultant was a proven approach that they had previously used to assess many other utilities around the world. PAS 55 Scoring and Gap Analysis The first step is to use PAS 55 to assess the current capabilities. On one level this is straightforward; using a simple pass or fail as used by organisations that offer accreditation services. However, the real value of this activity is through having experts with first- hand utility experience, to review the detail and issues behind the different PAS 55 elements. This is knowledge is best captured using a scoring mechanism. PAS 55 does not have a scoring mechanism, but the consultants brought their system, which had been used many times previously and therefore gave the added benefit of enabling comparison with other utilities. Individual scores and supporting observations are provided for the three key areas found in each of the PAS 55 clauses: Establishment, Implementation & Maintenance, Figure 6.
  11. 11. Figure 6. Typical Scoring of a PAS 55 Clause Detailed Capability Assessment The next element of the Review is related to the understanding the detail behind the assessment. In general, PAS 55 shows you where to look and the detailed follow-up reviews find the real strengths, weaknesses, constraints and issues within the organisation around these areas. The Review should not simply compare the organisation against the PAS 55 framework; it must compare it with other similar organisations that are adopting Asset Management, both at the start of their journey, but also at the leading edge. Again, unless the consultants are experienced, then the output from the Review will be limited in value. Understanding the Gap Having determined the current capabilities, the next step is to understand what the organisation wants to achieve over the next three to five years. The ambition is related to the company’s vision, but must be challenged to ensure that it is practical and achievable. The ambition can then be used to define the gap between where the company is currently and where it wants to be in the future. The use of experts with experience of other organisations and how much can be achieved within the chosen timescales helps to make the ambition meaningful. Initiatives and Change Plan Following from this, it is possible to develop a list of initiatives to close the gap. These in turn, can be prioritised and developed into a practical Change Plan, Figure 7. It is important that the Plan is realistic and based upon proven initiatives that are achievable. Figure 7. A Typical Change Plan Many organisations try to undertake too many initiatives and have no clear prioritisation and phasing to optimise the effort and investments required to make the change. Using Expert Support Services The Review is a critical first step and requires expert advice to ensure that the future investments are made wisely and that the desired success is delivered. OETC hired independent, specialist, consultants, QASR, to undertake the Capability Review and to assist with the development of the Change Plan. We found that the selection of the specialists is critical. In order to appoint the right quality of consultants, we suggest that the following selection criteria be used:  Experience of PAS 55 and the adoption of Asset Management;  First hand, practical, experience of adopting Asset Management;  Individuals who have worked in the same type of utilities;  Individuals who have worked and made real change within a utility preferably in the United Kingdom;
  12. 12.  A track record of undertaking similar projects within the region; and  Local knowledge of the culture and local environment and drivers. We decided not to use companies that offer accreditation to the PAS 55 standard, as this is a different and separate exercise that will be relevant, but only much later on when the organisation is ready to achieve accreditation. We also decided not to use companies that offer training services on PAS 55, as again, these skills were different to those that were required for this work. As well as selecting the right consultants to support the Capability Review it is important that the organisation as a whole also supports the initiative. Firstly, this requires a champion for Asset Management to be selected by the General Manager, and secondly, there is a need for support and gain input from the whole of the Management Team. If the specialists are experienced then the effort required from the Managers and the wider organisation should be minimal. We found that the time we spent with the consultants to be extremely useful: to learn and understand about Asset Management, to see the organisation from a different perspective, and to appreciate how to make real changes within the organisation. RECOMMENDATIONS For organisations wanting to start improving their performance through the use of Asset Management best practice then we recommend the following first steps to be taken:  Appoint a champion for Asset Management within the organisation;  Undertake a Capability Review that assesses the current capabilities of the organisation, the ambition and identifies the initiatives to fill the gaps and, which are prioritised into a meaningful and practical Change Plan; and  Appoint suitably experienced and qualified specialists to undertake the Capability Review and to provide advice and support. BIBLIOGRAPHY [1] Chilton R, & Druce P, “A Structured Approach to Asset Management”, Technical Scientific Seminar, Expo APA 2003, Brasov, Romania, May 2003 [2] Chilton R & Decker C, “Managing Water Infrastructure Assets Requires a Structured Approach”, J AWWA, June 2004 [3] Chilton R & Gaha J, “Rate Pressure and Cost Control Drive Change from functional to process based utility management, J. AWWA, July 2004 and EPA 2006 [4] Chilton R, & Smith, D, “Systems for Business Driven Asset Management of Utilities”, DaratechPlant2003, Atlanta, Jan 2003
  13. 13. [5] Urquhart A, Gaha J & Chilton R, “Asset Management Around the World”, WERF 2005 [6] International Infrastructure Management Manual, NAMS, 2006 [7] British Standards Institution, PAS 55-1: 2008, and PAS-2: 2008, Institute of Asset Management, 2008

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