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Advanced Asset Management at OSCD

Advanced Asset Management at OSCD. Doug Stewart Orange County Sanitation District May 5, 2005. This Presentation. History AMSC Interim work efforts Current program Lessons learned Future directions. Brief History. Asset Management strategic plan Consultant led approach

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Advanced Asset Management at OSCD

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  1. Advanced Asset Managementat OSCD Doug StewartOrange County Sanitation DistrictMay 5, 2005

  2. This Presentation • History • AMSC • Interim work efforts • Current program • Lessons learned • Future directions

  3. Brief History • Asset Management strategic plan • Consultant led approach • Peer review process • Staff led approach • Consultant advisor role

  4. AMSC • Cross disciplinary team • 17 members – 2 EMT • Provides oversight and direction for program

  5. Core Management Questions • What do I own? • Where is it located? • What condition is it in? • How is it likely to fail? • What is the consequence of that failure? • How does that consequence of failure affect my level of service (LOS)? • How do I choose to manage a change in LOS?

  6. Core Management Questions (cont’d) • What is the resulting short and long term cash flow? • What is my sustainable LOS? • What are my long term rates? • Am I doing it at minimum cost? • What and how much O&M should my staff be doing? • What investment in capital should I be making? • Who is owns and is responsible for the asset?

  7. CIP AMIP RCM AMP 2005ImprovementProjects Maintenance Improvement Program AMIP ImplementationPlan Complete InitialAMP To know whatthe bottom line is. What can be cut To provide staff with basic SOW for initial projects To provide better Understanding of Maintenance & reliability To set Future Funding needs at higher CLR Understand how much to cut Understand what To do first Understand what to do first OCSD AMIP Program 2004-5 Achieves much of the ultimate Asset Management Program

  8. Some Results • CIP Review (2003-4) • Test case on two projects, then 15 projects • Full review of 111 CIP projects • Saved $25.4 M in project costs and interest – deferred $6.8 m in low risk projects • CIP Review (2004-5) • Full CIP Review of 128 projects • Saved $ 6.1 m in project costs and interest • What did I not say?

  9. The Asset Management Plan • Structure (Management Questions) • Results • Rate study • Asset management strategies • Strategies for managing assets • Collections Risk Model • Sustainability • Intergenerational Equity

  10. 2020 Cash Flow Total = $2.8 Billion $ Millions Fiscal Year

  11. Implementation Challenges • Few strong outside drivers • Culture of technical silos • Plate is already full • Needs strong advocate at top of organization (stay the course) • This is not taught in school (in the U.S.)

  12. Lessons LearnedWhat We Did Well • Training is vital – 24 hours delivered • Bring wide diversity of work groups into process • AMSC - Collaborative approach – building commitment What We Would Do Differently Today • Include Board members in early education (WIIFM) • Focus on benefits and how AM will help them • Catch 22 – Benchmarking • Build basis of business case on Agency data – earlier, if possible

  13. Lessons LearnedWhat We Would Do Differently Today (cont’d) • Structure implementation concurrent with plan development – as you learn – start implementing – build basis for culture change • It is not as complicated as we made it out. It is just making better business decisions.

  14. Questions? Doug Stewart Asset Management Coordinator (714) 593-7320dstewart@ocsd.com Orange County Sanitation Districtwww.ocsd.com

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