Environmental Engineering Reference
In-Depth Information
political and economic environment
(Queensland government of Australia
2002
),
in which government is under increasing pressure to provide better and more ser-
vices while containing costs. It identi
”
es a number of methods for managing
infrastructure depending on the application. However,
the basic concepts and
foundation are consistent throughout the manual.
The objectives of the Australian approach are: structured and accountable cor-
porate planning; establishment of a relationship between service delivery and
resource planning; creation of plans for capital, maintenance and disposal; diffusion
of appropriate processes to manage new assets; more effective and innovative
service delivery; private sector participation in
financing, provision, management,
and maintenance of infrastructure; and enhanced coordination of public assets from
a
“
whole-of-government
perspective.
In this approach, all infrastructure go through a 5-stage cycle:
”
“
plan, create or
acquire, operate and maintain, refurbish or enhance, and dispose
(Queensland
government of Australia
2002
). The plan recognizes the fact that decisions at any
one point in the life cycle have cost and output implications at other stages.
The asset management plan identi
”
es the following six principles:
Assets exist only to support the delivery of services.
Asset planning is a key corporate activity that must be undertaken along with
planning for human resources, information and
nances.
Non asset solutions, full life-cycle costs, risks and existing alternatives must be
considered before investing in built assets.
Responsibility for assets should reside with the agencies that control them.
Strategic asset management within agencies must re
ect the whole-of-govern-
ment asset policy framework
The full cost of providing, operating and maintaining assets should be re
ected
in agency budgets
Figure
7.2
shows the organization of the plan as a matrix for each stage of the
life cycle. It has a 5-step approach to production: planning, investment, operational
management, maintenance, and disposal of assets.
In meeting service demands, the utility must manage demand, maintain value
and manage risk. Demand management is the process of moderating demand for a
service. Value management
finding the service delivery method that
achieves the objectives at the lowest possible cost. Risk management entails
identifying risk and methods by which to mitigate the size of the risk.
Traditionally, utilities have been directed from the top down. The instructions
from higher levels were broad and became more detailed at lower levels. Unfor-
tunately, as the instructions became more detailed the focus also became narrower.
Appropriate asset management needs a
involves
“
”
perspective, and as
plans become more detailed the focus must not become narrower.
Upon implementation of an asset management plan, a number of bene
whole-of-government
ts should
materialize. There should be a clear understanding of the purpose of the assets.
Each asset should link to a speci
c service delivery objective. The capital should be
in place to achieve the objective. Assets should be working properly and used in a
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