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Successful Projects & Failed
Programmes: The cost of not
designing the whole life cycle of
assets
Ruth Wallsgrove, February 28th 2024
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
CurrentRole
Principal Consultant and NA Training Lead for AMCL, a leading dedicated Asset
Management consultancy globally (majority owned by Turner & Townsend, in
turn majority owned by CBRE)
Over 25 years in infrastructure Asset Management
• NSW RailCorp GM of Strategic Asset Management
• UGL Rail Product Manager for build and maintain contracts
• Wrote the IPA Project Routemap manual on Asset Management
• Works with Talking Infrastructure to develop the questions for ‘Future
Friendly Assets’. Co-author Building an Asset Management Team, 2020
Ruth Wallsgrove
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
• This webinar is based on material developed for the UK Nuclear
Decommissioning Authority in 2023
• It addresses issues with current construction projects, from the
perspective of an Asset Management practitioner
• We need your help
About this webinar
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CEATI Webinars
© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
In partnership with
Poll: How much do you already use?
1. Already actively using good Asset
Management lifecycle thinking in
projects
2. Aware but not yet able to make use of it
3. What is Asset Management, again?
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
• Too many infrastructure projects fail on basic delivery
parameters: they overrun on construction costs and delivery
deadlines
• But of even more concern is how many truly deliver the
benefits in their business cases
• Do we even know how many succeed? We rarely review what
they achieve in practice in their years after handover to
operations
• We suffer from an almost universal focus on design and
construction, instead of what it takes to operate and maintain
them – so too often don’t design or even measure projects for
performance, operability, maintainability
Why do we need something more than we have?
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Case Study 1: New Rail Line/ On-going Costs
• Business case for a new airport rail line
that was approved for national
funding
• Case stated there were no additional
operational or maintenance cost
implications from building a new rail
line – which have significant
operational and maintenance costs.
No-one queried this.
• The case was approved locally, by the
state, and federally, and the railway
was built
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Lack of consideration
for on-going costs,
and where this money
was going to come
from, was not the only
issue with this project
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
But this is too easy to find: everyone has
their own favourites
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
And all of this can seem provocative and
boring at the same time
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Introduction:
Asset Management Thinking
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Daily
Operations
Long-term
Performance
Up-front
Cost
Local
Expertise
Age
Maintenance
Reactive
Whole-life
Cost
Integration
Condition
& Risk
Lifecycle
Management
Proactive
Managing Assets Asset Management
Fix on failure
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
What’s different about Asset Management
Systematic
An Asset Management System, or
co-ordinated framework for consistently
more optimal decision-making
which may be quite small – to promote and
co-ordinate more joined up decision
processes, for capital as well as
maintenance
Core Asset
Management Team
Integrated Asset
Management Planning
across all assets,
long and short term, ideally based on risk
to organizational objectives
Strategy based on understanding cost, risk
and performance, not tactics, reactive, or
simply a list of actions
Much more strategic approach
to asset decisions…
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Cost-Benefit Analysis
• The basis for capital investment starts with the relationship between benefit and cost: that the
overall benefit is greater than the overall cost
• But even for projects where we believe we can demonstrate the benefit is greater than the cost, it
is clear that some projects give a better ratio, more benefit to cost, which we attempt to capture
via various measures of ‘return on investment’
• Asset Management has tended not to enter this area on the straight financial investment, since it
is well covered by accountants and economists already
• However, Asset Management practitioners are very concerned about the total costs, and the
failure too often to consider the costs of operations, maintenance, and performance failure
• For capital renewals, AM focuses on ‘risk reduction per £’ to look for the optimal projects and
programmes (e.g. Highways England savings)
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Opportunities v Decisions across the Lifecycle
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Whole Life Costs
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Example of ‘Optimal Life’
Year of Replacement
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Best risk
reduction per £
project
Poor RR per £
project
Risk
Cost
DIMINISHING
RETURNS
Risk and Cost: Investment Portfolio Example
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Annualized
Funding
Requirement –
around £8bn
Sustaining existing asset base in a portfolio
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
And when you add new assets in a portfolio
Annualized
Funding
Requirement –
goes up to over
£10bn
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Case Study 2: Whole life cost modelling & projects
• Network Rail decided to invest in whole
life cost modelling to support asset class
decisions
• They found them invaluable for
appraising capital projects – now they
knew what the on-going costs were, they
could take them into account
• Unexpected benefit as how they
facilitated longer term planning when
Office of Rail Regulation (as was) required
a 25-year indicative asset plan
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Criteria in the Business
Case
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Where does AM thinking come into play in the Green Book?
• Strategic
• Economic – options appraisal
considering total cost of
ownership
• Commercial
• Financial – where is money
coming from, including O & M,
refurbishment, decommissioning
and disposal
• Management
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The five cases
Very important
Essential – whole life
O&M costs = key
Risk transfer and
operational assurance
Appropriate pivot points to
validate value, assumptions
and readiness for ops
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Strategic Case
• Strategic Context
• does it fit with corporate AM strategy? Is there a strategy?
• Organisational Overview
• Including how it will be operated
• Current Business Strategies
• Including today’s (bad?) AM arrangements
• The Case for Change
• Why are we doing this? How does it fit with everything else?
• Spending Objectives
• Must be whole life spending
• Business Needs
• Potential Scope
• Benefits and Risks – all significant risks
• Constraints and Dependencies
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Asset
Management
should feature
throughout
the Business
Case
Think
Objectives
and
Strategy
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Case Study 3: Sydney railways
• For many years, people had their
pet projects for new rail lines,
often motivated by search for
votes in marginal constituencies
• Latest fiasco was a new metro
abandonned before it was built at
a cost to the government of
AU$0.5 billion
• Success only came with an
integrated strategy for the whole
metropolitan area (that,
incidentally, asked where the
capacity bottleneck really was)
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
But few infrastructure organisations have what you could call a
strategy for their overall portfolio, including strategic
approaches to how they maintain it
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Economic Case
• Critical Success Factors
• Across whole lifecycle
• Long listed Options
• Covering AM whole life aspects
• Have the alternatives really been investigated?
• Short Listed Options
• Status quo; do nothing option
• Economic Appraisals of Costs and Benefits
• Essential to include AM considerations over whole life
• Risk Assessment
• All significant risks, across the lifecycle
• Sensitivity Analysis
• What happens if power costs go up? If resources are scarce?
➢Preferred Option
25
Asset
Management
should feature
throughout the
Economic Case
Think All
Costs and
All Risks
26
© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
More about Options Appraisal
• Is the options appraisal based on whole life costs including operational
resources, energy consumption, spares, maintenance, mid-life renewals,
decommissioning?
• What is the evidence alternatives were appropriately considered and
investigated?
• Do the figures make sense?
• A basic question is whether someone who knows about these requirements
and costs was even involved
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Case Study 4: Electric Buses/ On-going Costs
• Business case for taking national funding to
buy additional electric buses
• Analysis by AM team looked at the actual
financial impact of running these buses
• This included cost of new
maintenance facility, availability of
and need to buy new spares,
reliability and expected life, source of
power, replacing existing buses well
before their optimal life, lack of
flexibility to expand fleet – and
purchasing In a overheated market
for an under-mature technology
• They estimated it would cost an
additional $2 a mile for those routes
for the next 50 years
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Electric Bus Example
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• What is the problem it’s designed to solve?
• What’s the evidence this is a solution?
• What other non-renewable resources will it
require?
• What is the evidence so far on running costs?
• What is the evidence so far on performance?
• Requirement for new spares, tools, facilities
• Do we want to discard the embodied materials
in existing bus fleets?
• What does its overall cost benefit look like?
Decarbonization
E.g. battery materials
CO electricity from fossil fuels
High ops costs – 2 for 1
Poor reliability and shorter lives
Includes new facilities
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Commercial Case
• Procurement Strategy
• Including maintenance, spares, facilities
management
• Service Requirements
• Levels of maintenance required, reactive v
preventative v data driven maintenance strategy
• Charging Mechanism
• Risk Transfer
• But how much risk can you realistically transfer?
• Key Contractual Arrangements
• Personnel (TUPE) Implications
• Accountancy Treatment
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Asset
Management
should feature In
Procurement
Strategy and in
Service
Requirements
Think
Maintenance
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Financial Case
• Public Capital and Revenue
Requirements
• Net Effect on Prices (if applicable)
• Impact on Balance Sheet
• Impact on Income and Expenditure
Account
• Overall Funding and Affordability
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Asset
Management
should feature
In bold areas
shown
Think Whole
Life Costs -
again
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Management Case
• Transition to live ops and operational
Contract Management Arrangements
• Benefits Realisation
• Operational Risk Management
• Monitoring costs during operations
• Post Implementation Evaluation
Arrangements
• Contingency Arrangements
31
Asset
Management
should
feature In
bold areas
shown
Think about
Handover &
O&M
Strategies
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Case Study 5: Handover Strategies, Plan and £
• Both the Elizabeth Line and HS2
explicitly involved highly
experienced O&M roles from the
start, and AM (including AMCL)
during the project
• HS2 hired Asset Managers before
design to look at (among other
things) operability and
maintainability in design, O&M
strategies, and handover (as-built
data, O&M manuals, maintenance
schedules)
32
Neom in Saudi Arabia already has an
AM and Handover Manager in place
at the start of the 9 plus year
construction project, with funding for
her team and for everything involved
in planning and executing handover –
contracts about to be let for the latter
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Call to action
1. Closer liaison between Project Management and Asset Management, based
on shared understanding of total asset costs (‘total cost of ownership’)
2. Asset costs, risks and performance built into design considerations and the
business case right from the start
3. Asset handover properly costed and resourced from the start, as at Neom –
including development before handover of
• Operating strategy
• Maintenance strategy and schedule
• O&M Manual and training
• Asset information strategy
• And of course as-built data handed over in operations and maintenance systems,
including ‘enterprise asset management’ or work management system
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Discussion
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Does this require additions to Project
Management education and methodology?
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CEATI Webinars
© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
In partnership with
Poll: Ideas for Improvement
Ideas for ways to build our education,
training and tools for project managers,
engineers and others to include the total cost
of ownership and the importance of having
this bigger picture
2
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© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
1. On-going operational costs: evidence against typical costs?
• Includes sensitivity to changing power costs
2. On-going maintenance costs: evidence against typical costs?
• Includes spares, facilities, resources
3. Consideration of alternative options: evidence of process?
4. Consideration of decommissioning and disposal costs and risks: evidence using past
experiences?
5. Treatment of on-going risks?
6. Overall modelling of costs and risks?
Summary Question Checklist – in progress
38
© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Q&A
39
© Copyright 2024 Asset Management Consulting Limited. All Rights Reserved
Thank You!

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Successful projects and failed programmes – the cost of not designing the whole life cycle of assets

  • 1. 1 Successful Projects & Failed Programmes: The cost of not designing the whole life cycle of assets Ruth Wallsgrove, February 28th 2024
  • 2. 2 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved CurrentRole Principal Consultant and NA Training Lead for AMCL, a leading dedicated Asset Management consultancy globally (majority owned by Turner & Townsend, in turn majority owned by CBRE) Over 25 years in infrastructure Asset Management • NSW RailCorp GM of Strategic Asset Management • UGL Rail Product Manager for build and maintain contracts • Wrote the IPA Project Routemap manual on Asset Management • Works with Talking Infrastructure to develop the questions for ‘Future Friendly Assets’. Co-author Building an Asset Management Team, 2020 Ruth Wallsgrove 2
  • 3. 3 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved • This webinar is based on material developed for the UK Nuclear Decommissioning Authority in 2023 • It addresses issues with current construction projects, from the perspective of an Asset Management practitioner • We need your help About this webinar 3
  • 4. 4 CEATI Webinars © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved In partnership with Poll: How much do you already use? 1. Already actively using good Asset Management lifecycle thinking in projects 2. Aware but not yet able to make use of it 3. What is Asset Management, again? 1
  • 5. 5 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved • Too many infrastructure projects fail on basic delivery parameters: they overrun on construction costs and delivery deadlines • But of even more concern is how many truly deliver the benefits in their business cases • Do we even know how many succeed? We rarely review what they achieve in practice in their years after handover to operations • We suffer from an almost universal focus on design and construction, instead of what it takes to operate and maintain them – so too often don’t design or even measure projects for performance, operability, maintainability Why do we need something more than we have? 5
  • 6. 6 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Case Study 1: New Rail Line/ On-going Costs • Business case for a new airport rail line that was approved for national funding • Case stated there were no additional operational or maintenance cost implications from building a new rail line – which have significant operational and maintenance costs. No-one queried this. • The case was approved locally, by the state, and federally, and the railway was built 6 Lack of consideration for on-going costs, and where this money was going to come from, was not the only issue with this project
  • 7. 7 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved But this is too easy to find: everyone has their own favourites
  • 8. 8 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved And all of this can seem provocative and boring at the same time
  • 10. 10 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Daily Operations Long-term Performance Up-front Cost Local Expertise Age Maintenance Reactive Whole-life Cost Integration Condition & Risk Lifecycle Management Proactive Managing Assets Asset Management Fix on failure
  • 11. 11 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved What’s different about Asset Management Systematic An Asset Management System, or co-ordinated framework for consistently more optimal decision-making which may be quite small – to promote and co-ordinate more joined up decision processes, for capital as well as maintenance Core Asset Management Team Integrated Asset Management Planning across all assets, long and short term, ideally based on risk to organizational objectives Strategy based on understanding cost, risk and performance, not tactics, reactive, or simply a list of actions Much more strategic approach to asset decisions…
  • 12. 12 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Cost-Benefit Analysis • The basis for capital investment starts with the relationship between benefit and cost: that the overall benefit is greater than the overall cost • But even for projects where we believe we can demonstrate the benefit is greater than the cost, it is clear that some projects give a better ratio, more benefit to cost, which we attempt to capture via various measures of ‘return on investment’ • Asset Management has tended not to enter this area on the straight financial investment, since it is well covered by accountants and economists already • However, Asset Management practitioners are very concerned about the total costs, and the failure too often to consider the costs of operations, maintenance, and performance failure • For capital renewals, AM focuses on ‘risk reduction per £’ to look for the optimal projects and programmes (e.g. Highways England savings) 12
  • 13. 13 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Opportunities v Decisions across the Lifecycle
  • 14. 14 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Whole Life Costs
  • 15. 15 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Example of ‘Optimal Life’ Year of Replacement
  • 16. 16 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Best risk reduction per £ project Poor RR per £ project Risk Cost DIMINISHING RETURNS Risk and Cost: Investment Portfolio Example
  • 17. 17 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Annualized Funding Requirement – around £8bn Sustaining existing asset base in a portfolio
  • 18. 18 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved And when you add new assets in a portfolio Annualized Funding Requirement – goes up to over £10bn
  • 19. 19 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Case Study 2: Whole life cost modelling & projects • Network Rail decided to invest in whole life cost modelling to support asset class decisions • They found them invaluable for appraising capital projects – now they knew what the on-going costs were, they could take them into account • Unexpected benefit as how they facilitated longer term planning when Office of Rail Regulation (as was) required a 25-year indicative asset plan 19
  • 20. 20 Criteria in the Business Case 20
  • 21. 21 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Where does AM thinking come into play in the Green Book? • Strategic • Economic – options appraisal considering total cost of ownership • Commercial • Financial – where is money coming from, including O & M, refurbishment, decommissioning and disposal • Management 21 The five cases Very important Essential – whole life O&M costs = key Risk transfer and operational assurance Appropriate pivot points to validate value, assumptions and readiness for ops
  • 22. 22 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Strategic Case • Strategic Context • does it fit with corporate AM strategy? Is there a strategy? • Organisational Overview • Including how it will be operated • Current Business Strategies • Including today’s (bad?) AM arrangements • The Case for Change • Why are we doing this? How does it fit with everything else? • Spending Objectives • Must be whole life spending • Business Needs • Potential Scope • Benefits and Risks – all significant risks • Constraints and Dependencies 22 Asset Management should feature throughout the Business Case Think Objectives and Strategy
  • 23. 23 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Case Study 3: Sydney railways • For many years, people had their pet projects for new rail lines, often motivated by search for votes in marginal constituencies • Latest fiasco was a new metro abandonned before it was built at a cost to the government of AU$0.5 billion • Success only came with an integrated strategy for the whole metropolitan area (that, incidentally, asked where the capacity bottleneck really was) 23
  • 24. 24 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved But few infrastructure organisations have what you could call a strategy for their overall portfolio, including strategic approaches to how they maintain it 24
  • 25. 25 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Economic Case • Critical Success Factors • Across whole lifecycle • Long listed Options • Covering AM whole life aspects • Have the alternatives really been investigated? • Short Listed Options • Status quo; do nothing option • Economic Appraisals of Costs and Benefits • Essential to include AM considerations over whole life • Risk Assessment • All significant risks, across the lifecycle • Sensitivity Analysis • What happens if power costs go up? If resources are scarce? ➢Preferred Option 25 Asset Management should feature throughout the Economic Case Think All Costs and All Risks
  • 26. 26 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved More about Options Appraisal • Is the options appraisal based on whole life costs including operational resources, energy consumption, spares, maintenance, mid-life renewals, decommissioning? • What is the evidence alternatives were appropriately considered and investigated? • Do the figures make sense? • A basic question is whether someone who knows about these requirements and costs was even involved 26
  • 27. 27 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Case Study 4: Electric Buses/ On-going Costs • Business case for taking national funding to buy additional electric buses • Analysis by AM team looked at the actual financial impact of running these buses • This included cost of new maintenance facility, availability of and need to buy new spares, reliability and expected life, source of power, replacing existing buses well before their optimal life, lack of flexibility to expand fleet – and purchasing In a overheated market for an under-mature technology • They estimated it would cost an additional $2 a mile for those routes for the next 50 years 27
  • 28. 28 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Electric Bus Example 28 • What is the problem it’s designed to solve? • What’s the evidence this is a solution? • What other non-renewable resources will it require? • What is the evidence so far on running costs? • What is the evidence so far on performance? • Requirement for new spares, tools, facilities • Do we want to discard the embodied materials in existing bus fleets? • What does its overall cost benefit look like? Decarbonization E.g. battery materials CO electricity from fossil fuels High ops costs – 2 for 1 Poor reliability and shorter lives Includes new facilities
  • 29. 29 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Commercial Case • Procurement Strategy • Including maintenance, spares, facilities management • Service Requirements • Levels of maintenance required, reactive v preventative v data driven maintenance strategy • Charging Mechanism • Risk Transfer • But how much risk can you realistically transfer? • Key Contractual Arrangements • Personnel (TUPE) Implications • Accountancy Treatment 29 Asset Management should feature In Procurement Strategy and in Service Requirements Think Maintenance
  • 30. 30 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Financial Case • Public Capital and Revenue Requirements • Net Effect on Prices (if applicable) • Impact on Balance Sheet • Impact on Income and Expenditure Account • Overall Funding and Affordability 30 Asset Management should feature In bold areas shown Think Whole Life Costs - again
  • 31. 31 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Management Case • Transition to live ops and operational Contract Management Arrangements • Benefits Realisation • Operational Risk Management • Monitoring costs during operations • Post Implementation Evaluation Arrangements • Contingency Arrangements 31 Asset Management should feature In bold areas shown Think about Handover & O&M Strategies
  • 32. 32 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Case Study 5: Handover Strategies, Plan and £ • Both the Elizabeth Line and HS2 explicitly involved highly experienced O&M roles from the start, and AM (including AMCL) during the project • HS2 hired Asset Managers before design to look at (among other things) operability and maintainability in design, O&M strategies, and handover (as-built data, O&M manuals, maintenance schedules) 32 Neom in Saudi Arabia already has an AM and Handover Manager in place at the start of the 9 plus year construction project, with funding for her team and for everything involved in planning and executing handover – contracts about to be let for the latter
  • 33. 33 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Call to action 1. Closer liaison between Project Management and Asset Management, based on shared understanding of total asset costs (‘total cost of ownership’) 2. Asset costs, risks and performance built into design considerations and the business case right from the start 3. Asset handover properly costed and resourced from the start, as at Neom – including development before handover of • Operating strategy • Maintenance strategy and schedule • O&M Manual and training • Asset information strategy • And of course as-built data handed over in operations and maintenance systems, including ‘enterprise asset management’ or work management system
  • 35. 35 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Does this require additions to Project Management education and methodology?
  • 36. 36 CEATI Webinars © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved In partnership with Poll: Ideas for Improvement Ideas for ways to build our education, training and tools for project managers, engineers and others to include the total cost of ownership and the importance of having this bigger picture 2
  • 37. 37 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved 1. On-going operational costs: evidence against typical costs? • Includes sensitivity to changing power costs 2. On-going maintenance costs: evidence against typical costs? • Includes spares, facilities, resources 3. Consideration of alternative options: evidence of process? 4. Consideration of decommissioning and disposal costs and risks: evidence using past experiences? 5. Treatment of on-going risks? 6. Overall modelling of costs and risks? Summary Question Checklist – in progress
  • 38. 38 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Q&A
  • 39. 39 © Copyright 2024 Asset Management Consulting Limited. All Rights Reserved Thank You!