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SEAMS: Should I manage the assets or the projects?
- 1. Driving Value fromAssets produced by: Should I Manage the Projects or Manage the Assets? Jon Greensill - SEAMS Ltd
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- 3. 3 Critical SuccessFactors learnt from Successful Asset Planning Projects in Large Organisations 1. Get more people involved in the process – Make it simple and repeatable – Have a consistent planning process across assets and departments – Transparent / auditable process which captures local decision making knowledge 2. Speed up the process – Days and weeks not months – Easier to do means asset planning is not a special event – You can respond quickly when things change 3. Make best use of available data – Don’t wait for perfect data - measure data quality and use what you have – Relate decisions to data and understand uncertainty – Have a framework to make use of new data sources as they becomes available
- 4. Project or AssetLevel Planning The Challenge • Strategic Asset Management is often executed by evaluation of a large portfolio of possible Projects that the company could choose to do - Project Portfolio Optimization. • But where do these Projects come from? • Is a new Asset focussed approach possible?
- 5. Asset Centric orProject Centric Project Centric – Looks to optimise a set of predefined projects – Investments are described as discrete projects with benefits/costs described at project level – Selects the optimal mix from the previously defined projects provided to it Asset Centric – Considers all capital, operational and inspection interventions for each asset within specific asset classes – Investment model trades investment at asset level or across multiple asset classes – Uses latest asset data – often changing Or a Combined Approach?
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- 7. Project Based Planning Benefitsof Portfolio Modelling • Delivers more value from the investment program for a level of spend • Increases the transparency of the investment planning cycle • Maximises the value of existing and ‘siloed’ investment approaches • Ensures the highest ‘value engineering’ projects are taken forward • Increases buy-in from all stakeholders Constraints • Have the right projects been created to be optimized? • Have the benefits and costs been accurately reflected? • Controls need to be in place to avoid gaming • Do the projects represent a broad enough set of options • How much effort did it take to generate the projects, many of which will not be taken forward
- 8. Asset Based Planning Benefitsof Asset Modelling • Right investment intervention for the right asset at the right time • Increases buy-in from all stakeholders • High efficiencies, typically between 7 and 17% • Increases the transparency of the investment planning cycle • Challenges historic, recurring decisions • Making best use of available asset data Constraints of Asset Modelling • Where there are large volumes of assets, models can be time consuming to run as the data is granular • Cohorts or combined approach may be recommended • Models may need constraining to reflect external factors, eg regional spending, rates of change etc
- 9. What’s Changed? • BigData – More asset data available and even more to come (IOT) – Some you asked for, lots you didn’t • Big Data Processing – Distributed Computing (AWS / Azure) – Analytics of various flavours – Ability to solve/search/optimize very large problems …and businesses that need to respond to change faster than before Model Metrics
- 10. A Note onData Quality - Measure and Improve 10
- 11. An Example ofIntegrated Asset and Project Planning
- 12. FinancialPortfolioAsset Resource EDA ProjectPortal EDA Optimise Data Labs Data Integration Layer Workflow&Automation EDA Developer Monte Carlo What-If Data Hub Asset Register Results Viewer Dash- board Map View EDA Platform EDA Core Applications
- 13. Continue to Simplifythe Asset Modelling… 13 Manages process from raw data to optimised investment plans - quick to rerun the analyses given new data..
- 14. The Asset ModellingProcess 14 Assets & external data
- 15. Automated Analysis ofAsset Data 15 Previously a manual/consultancy exercise – new results automatically re-configure the model
- 16. Combine Outputs fromAsset Models into a Project Portfolio Model Assets & external data Assets & external data Assets & external data Strategic Cross Asset Results EDA Portfolio Manual Schemes (Risks & Solutions) Non-Infrastructure Strategic Waste Water Strategic Clean Water Strategic Strategic Cross Asset Portfolio Model
- 17. 17 EDA Asset SAP EDA Portfolio StrategicAMP Planning Operational Risk Management EDA Portfolio Integrated Business Planning Named Schemes EDA Asset Strategic Asset Planning (Models) Issues (Fix now) Risks (Fix later maybe) Import Engineering Staff Risk Evaluation & Management OptionsOptions Real-time Monthly Annual EDA Asset Deployment Asset Planning (Models) Committed Plan Advanced EDAP Web App EDAP Web App Advanced EDAP Web App ORM Portal Dashboards AMP Plan STW’s Vision - Integrated Business Planning
- 18. Conclusion • The industryhas traditionally been solving the investment planning problem by using disparate systems, spreadsheets and ad-hoc solutions • Organisations often struggle to deal with the differing decision time frames of strategy and delivery. This results in disjointed processes for the translation of strategic objectives into the everyday operational pressures • Significant efficiencies can be achieved through the appropriate implementation of tools that have a link between both asset level optimization and projectprogramme optimization • To solve the Service/Risk/$ challenges an enterprise solution is required which covers – Derivation of strategic investment plans – Cascade of a strategic plan to a delivery plan – ‘In-flight’ management and update of that plan 18 Got a question? Contact j.Greensill@seamsltd.com
- 19. Driving Value fromAssets produced by: Jon Greensill SEAMS Ltd j.greensill@seamsltd.com
Editor's Notes
- #2 Strategic Asset Management is often executed by evaluation of a large portfolio of possible projects that the company could choose to do. Good organizations seek to select the best blend of projects that meet financial, performance and logistical constraints then profile these into a plan over time. But where do these projects come from? Are companies constrained by limiting themselves to choosing from a predefined set of options that may not fully explore the boundaries or new ways of working? As the quantity and quality of asset data increases in an organization, is the balance shifting from managing projects to managing the assets themselves? In this presentation we explore how asset level planning and project portfolio planning differ and describe the relative benefits of each approach. We explore how latest asset analytics is making more detailed planning achievable and how a new approach has delivered excellent results for some of the largest utility companies in the world.
- #3 1. The regulator has forced UK water companies through several cycles of change (like it or not) relatively quickly by utility standards. Benefit : Asset Planning has had to become quick & simple 2. UK water companies are relatively large. Benefit - Really had to tackle Big Data challenges 3 .They are motivated to make a profit. Benefit - Financial and Asset Planning has become more integrated
- #4 Note SCE example, specific transformers vs cross asset decisions. 1 & 2 work against each other……need to make the planning process more efiicient.
- #6 Optimiser selects the optimal mix of interventions at an asset level Drives the definition of projects which feed into a Portfolio model for latter optimization Higher efficiencies & speed of Portfolio Modelling
- #10 …to allow asset based planning