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  1. 1. 5th September 17 & 18, 2008, Toronto LIFE CYCLE COSTING for ASSET MANAGEMENT Using LCC models to respond to ever-changing costs in the design, operation, maintenance and renewal stages of complex infrastructure assets endorsed by: as well as: Michael O’Connor, St. Joseph Communications Course Leader Donald Barry, David Katz, Stephen Ali Zuashkiani, IBM Business Sustainable Kenny, Ph.D, Conscious Consulting Resources Atomic Energy Asset Services Management of Canada Ltd. Allan Reid, Management Ontario Power Generation Inc. participating organizations “Excellent ideas in how to initiate and execute a Atomic Energy of Canada Ltd. Ontario Power Generation Inc. program” Conscious Asset Management St. Joseph Communications IBM Business Consulting Services Sustainable Resources Management - Toronto, 2007 who should attend Directors, General Managers and Managers of: Asset Management Capital Acquisition “Reminded me of the Asset Maintenance Infrastructure Acquisition potential that exists and Facilities Management Engineering where our organization would Strategic Planning like to go” Finance - Kelly Oakley, Procurement City of Barrie course highlights • Improving decision making from acquisition to disposal • Leveraging life cycle costing methods to optimize spending “Provided me with excellent tips on how to present capital • Implementing a life cycle plan for asset management and expense requests more • Linking predictive modeling and work orders with life cycle costing strategy successfully” • Risk management models for life cycle costing - Toronto, • Activity-based costing techniques that support life cycle costing 2007
  2. 2. FACULTY COURSE LEADER DR. ALI ZUASHKIANI and re-utilization techniques as well as leading ALLAN REID the coordination of many service business Dr. Ali Zuashkiani has both practical and theo- mergers and divestitures. Allan Reid, BSc., MBA, is the Asset and retical expertise in optimizing maintenance Technical Services Manager for the Niagara decisions including life cycle costing (LCC), DAVID KATZ Plant Group at Ontario Power Generation. His preventive maintenance intervals, inspection primary responsibilities are to prepare and frequencies, condition based maintenance, David Katz is an independent energy and en- monitor the 5 year business plan and ensure spare parts inventories and maintenance vironmental consultant with extensive experi- programs and investments are in place so crew size and resources decisions. He also ence in technological products and program that the Niagara Plant Group remains a viable has deep familiarity with methodologies that evaluations for energy in the utility sector and operation. He has 26 years of experience in use experts’ knowledge in dealing with the building automation in both the institutional the hydroelectric business, 25 of which were above problems when there is no historical and the marketplace settings. Prior to estab- spent in Northeastern Ontario with Ontario data available. He has been involved in several lishing his consulting practice of Sustainable Hydro (now Ontario Power Generation). projects dealing with optimization of LCC Resources Management and the building au- decisions including a major transportation tomation subsidiary Sustainable Environmen- company in Canada. MICHAEL O’CONNOR tal Solutions. Most recently he has focused on the application of Life Cycle Costs to the Michael O’Connor joined St. Joseph Commu- energy management opportunities to provide CO-LECTURERS renewable and sustainable energy solutions to his client base of large buildings. nications’ executive team as Vice-President, Marketing and Business Development in Feb- ruary 2007. His 15 years of senior marketing experience and knowledge will be instrumental DONALD BARRY STEPHEN KENNY in establishing an integrated customer experi- ence across St. Joseph’s four strategic busi- Donald Barry is an Associate Partner, lead- After 21 years of working at maintaining and ness platforms. His track record of success ing IBM Canada’s Supply Chain Operations developing the Atomic Energy of Canada includes leading the development of Rogers and Enterprise Asset Management Practice, Limited Chalk River Labs campus in Chalk Communications’ multi-product customer experienced at creating distribution process River, Ontario, Stephen Kenny shifted gears in strategy as Vice-President of Marketing and improvements and developing inventory 2001 and accepted a job as Decommissioning Customer Knowledge and forming a deregu- reduction strategies with increased service Manager. In this new role, he is responsible lated business strategy and launching a new levels. He specializes in solving asset man- for the safe shutdown, decommissioning and brand for Toronto Hydro Corporation. agement, distribution and asset re-utilization demolition of various nuclear and non-nuclear business problems. His in-depth experience facilities within regulatory guidelines, to make includes world-class inventory optimization space for new construction to meet current business needs. COURSE PROGRAM DEFINING LIFE CYCLE COSTING FOR ASSET BENEFITS OF LIFE CYCLE COSTING: MANAGEMENT AND IMPLICATIONS FOR GETTING BUY-IN ASSET PERFORMANCE Life cycle costing inevitably involves people with widely differing agen- Cost of asset ownership is playing a pivotal role in performance as- das ranging from those who really want to know about cost of owner- sessment. As a result, organizations are being encouraged to increase ship in order to make better decisions, through to those who see life accountability and minimize risk through more comprehensive and cycle costing information as a threat to their program aspirations. This innovative asset management techniques. Life cycle costing strategies session will examine the four major benefits of LCC analysis. are steadily replacing traditional costing tools in a move to identify and monitor long-term cost of ownership. By extending previous calcula- · Evaluation of competing options in purchasing tions to include customer, social and environment considerations, life · Improved awareness of total costs cycle costing can provide a valuable tool in assessing economic effi- · More accurate forecasting of cost profiles ciency in complex infrastructure asset management. The question then · Performance trade-off against cost becomes how to identify, analyze and respond to ever changing costs throughout the development, building, maintenance and end stages of a complex asset. · Issues that impact the development of life cycle costing · Identifying the difficulties of forecasting external factors · Meeting short-term objectives of senior management who are awarded for immediate results · Improving decision making through innovations in life cycle costing · Data requirements for life cycle costing · Calculating life cycle costs
  3. 3. IMPLEMENTING A LIFE CYCLE PLAN FOR DETERMINING COSTS OF OWNERSHIP: ASSET MANAGEMENT THE REAL COSTS OF AN ASSET Most people are familiar with the concepts of LCC and asset manage- The real costs of an asset must take into account the initial costs plus ment at this stage, so why are we not seeing more organizations running the maintenance and repair costs of an asset over its entire lifetime. asset management successfully? The problem lies with implementation. When implemented correctly, LCC can result in better accountability, This session will enable you to establish a course of action for imple- cost savings and minimized risk. But what costs need to be taken into menting life cycle costing within your organization. The emphasis will be consideration? What are the uncertainties associated with life cycle on a simple, pragmatic and practical approach to life cycle costing. costing? What assumptions need to be made? This session will outline how to establish the cost breakdown structure. · Identifying challenges to asset management implementation · Establishing a total integrated asset management system: · Cost estimating building the components of an asset management framework · Discounting and inflation · Implementing asset management into daily operations · Determining areas of cost including environmental and social costs · Setting precedents for valuation · Establishing a forward planning approach through life cycle costing · Matching data capture with its many requirements · Building a predictive model to establish future costs and · Capturing costs from acquisition to disposal optimize funding BENCHMARKS AND BEST PRACTICES IN UTILIZING LIFE CYCLE COSTING MODELS AS LIFE CYCLE COSTING MANAGEMENT A LOGISTICS MANAGEMENT DECISION TOOL Benchmarks allow an organization to evaluate its asset management Life cycle costing models allow quantitative assessments of cost practices and performance by comparing them with those of other changes for upgrades, support alternatives and ongoing support organizations and against precise performance standards. This session requirements. Current and future costs can then be compared and will review some of the benchmarks and best practices that are com- priorities established for upgrades to ensure best value for money. monly used in assessing acquisition, installation, operation, mainte- This session will look at improving decision making from acquisition to nance, refurbishment and disposal costs. disposal through life cycle costing for asset management. · Identifying sources of cost associated with the asset · Considering upgrade options to predict cost performance impacts · Determining the sum of all costs associated with an · Accurately assessing the resources required to maintain asset including acquisition, installation, operation, operational capability maintenance, refurbishment and disposal costs · Ways to improve decision making through life cycle costing · Identifying benefits, resources and requirements · Analyzing risk and its relevance to life cycle costing FINANCIAL APPROACHES TO SUPPORT LIFE CYCLE COSTING ENSURING THE QUALITY AND ACCURACY OF CAPITAL PLANNING DATA FOR IMPROVED LCC DECISION MAKING This session will describe the various financial approaches commonly used in supporting life cycle costing activities, including: Arriving at a meaningful capital planning LCC decision requires that · Identifying financial life cycle costs associated with assets full account be taken of each available opportunity to improve asset · Modeling of cost projections based on asset management performance. This requires that all relevant current and future costs plans and service strategies for each option, from initial consideration through to disposal, must be · Identifying operating efficiencies in assets evaluated. This presentation will review: · Managing risk in the context of life cycle costing · Weighing the costs and benefits of LCC · Exploring the methods of calculating capital planning LCC events and activities LINKING PREDICTIVE MODELING WITH LIFE · Understanding the data requirements and data availability CYCLE COSTING STRATEGY · Capturing quality and accurate information on your organization’s assets This session will examine how to establish a preventative maintenance · Being specific about the amount of data and type program that will enable you to analyze and manage your current port- of data to be collected folio from a life cycle perspective. · Evaluating whether you can reliably predict future costs from current data · Collecting qualitative and quantitative data on all assets · Educating employees to use technology effectively · Classifying and grouping assets · Defining the life cycle of the asset RISK MANAGEMENT MODELS FOR LIFE · Developing a preventative model template for each CYCLE CAPITAL COSTING group that links back to the life cycle plan This session will look at best practices for developing a capital planning FACTORING LONG-TERM STRATEGIES AND life cycle costing risk management model to reduce risk and support COSTS OF OWNERSHIP appropriate capital funding through options analysis. Explore the cost drivers behind the development of this cutting-edge methodology. By identifying long-term costs of ownership, life cycle costing seeks to enhance the performance of your assets. This session will examine · Developing life cycle costing models describing the risks the long-term benefits of life cycle costing and provide strategies for and liabilities associated with improper funding of ongoing developing a total asset life plan from the beginning. operation of an asset in its life cycle · Building inventory models based on existing platforms · Understanding the decision-making environment and data collection methodologies · Identifying long-term costs of ownership including · Developing rapidly adaptable life cycle costing models maintenance, upgrades and operating costs · Executing strategic decision-based analysis · Comparing alternatives during procurement stages · Determining consequence of failure · Implementing strategies to deal with risk
  4. 4. MULTIMEDIA PRESENTATIONS Register for the Life Cycle Costing for Asset Management course and receive the following presentations on CD-ROM. These presentations taken from recent Federated Press courses are presented in their entirety with complete audio and accompanying PowerPoint Slides, representing 437 minutes of expert learning. Benefits of whole life costing: Factoring long-term strategies and costs Determining costs of ownership: getting buy-in of ownership during procurement stages the real costs of an asset Michael Currie, Director, Asset of assets Leonard G. Middleton, Principal Consultant, Management, Doug Stretton, Global Maintenance Leader, Asset Management Solutions Matrikon Inc. Barrick Gold Corporation Time: 26 Slides: 21 Time: 44 Time: 48 Slides: 13 Risk management models for Utilizing life-cycle costing models as Determining costs of ownership: life cycle capital costing a logistics management decision tool the real costs of an asset Karl Scharnitzky, Capital Planning Susan Anson, General Manager, Bob Munro, Senior Project Manager, Product Development, VFA Canada Corporation CH2M Hill Canada Limited Capital Planning Solutions Inc. Time: 52 and Rob Ulrich, Asset Management Time: 50 Slides: 44 Coordinator, City of Lethbridge Ensuring the quality and accuracy of Time: 45 Slides: 42 Linking predictive modeling with data for improved LCC decision-making life cycle costing strategy/financial Alan Gordon, Principal, Defining life cycle costing for asset approaches to support life cycle costing Gordon Highlands Management Services management and implications on long Hesham Osman, Asset Management Time: 46 Slides: 41 and short-term asset performance Specialist, John Murray, Manager of Asset UMA AECOM Benchmarks and best practices in Management, Time: 39 Slides: 30 whole life costing management City of Hamilton James V. Reyes-Picknell, President, Time: 41 Slides: 44 Conscious Group Inc. Time: 46 Slides: 21 Audio/Video segments clickable slide by slide Papers and overheads also included Print any of the material for your own use PROCEEDINGS CD - ROM Registration: To reserve your place, call Federated Press toll-free at 1-800-363-0722. In Cancellation: Please note that non-attendance at the course does not entitle the registrant Toronto, call (416) 665-6868 or fax to (416) 665-7733. Then mail your payment along with the to a refund. In the event that a registrant becomes unable to attend following the deadline for registration form. Places are limited. Your reservation will be confirmed before the course. cancellation, a substitute attendee may be delegated. Please notify Federated Press of any Location: Metropolitan Hotel, 108 Chestnut Street, Toronto, Ontario, M5G 1R3 changes as soon as possible. Federated Press assumes no liability for changes in program content or speakers. A full refund of the attendance fee will be provided upon cancellation in Cost: The attendance fee for the course is $1825 per person and covers attendance for one writing received prior to September 4, 2008. No refunds will be issued after this date. Please person and the lecturers’ presentation material. The fee further includes lunch on the first note that a 15% service charge will be held in case of a cancellation. day, morning coffee on both days and refreshments during all breaks. You may purchase a Proceedings CD-ROM containing edited actual proceedings and materials from the course. Discounts: Federated Press has special team discounts. Groups of 3 or more from the same organization receive a 10% discount. Groups of 7 or more from the same organization Time: Course registration begins at 8:00 a.m. The morning sessions start promptly at 9:00. receive a 15% discount. The second day ends at noon. Payment must be received prior to September 10, 2008 Phone: 1-800-363-0722 Toronto: (416) 665-6868 Fax: (416) 665-7733 TO REGISTER FOR LIFE CYCLE COSTING FOR ASSET MANAGEMENT REGISTRATION COSTS Name NUMBER OF PARTICIPANTS: Title Department COURSE: $1825 Approving Manager Name COURSE + PROCEEDINGS CD-ROM: Approving Manager Title $1825 + $125 = $ 1950 Organization PROCEEDINGS CD-ROM: $399 Address NOTE: Please add 5% GST to all prices.` City Province Postal Code Proceedings CD-ROM will be available 60 days after the course takes place Telephone Fax e-mail Please bill my credit card: o AMEX o VISA o Mastercard Enclose your cheque payable to Federated Press in the amount of: # Expiration date: / Signature : Payment enclosed: o Please invoice. PO Number: GST Reg. # R101755163 PBN#101755163PG0001 WHEN CALLING, PLEASE MENTION PRIORITY CODE: MAIL COMPLETED FORM WITH PAYMENT TO: Federated Press P.O. Box 4005, Station “A” For additional delegates please duplicate this LCCT0809/E Toronto, Ontario M5W 2Z8 form and follow the normal registration process