Right Sizing Asset Management Margaret McCarthy, PE South Carolina Rural Water Association Annual Conference September 14, 2016

Agenda Asset Management Principals Understanding current positions Challenges Opportunities Refining the asset management program

What is Asset Management? Minimize total costs of owning, operating & maintaining assets at acceptable levels What you have Location Condition Costs

Drivers Diminishing resources Aging infrastructure Loss of knowledge Increasing demand for services Regulatory demands Justification of rates & budgets Technology Insert some photos of lots of paperwork, old assests,

Benefits Increased knowledge of the location, condition and criticality of assets Prolonged asset life Meet service expectations and regulatory requirements Reduce energy needs and costs Justification for budgets and rates Reduce emergencies Better communication with customers

Benefits

5 Core Questions

Where are you? Clear Rules Technology Awareness Weak Strong Business Unclear

What it is vs What it could be Time delays from field to office Data integrity Finding inspections/reports Sync to get forms Cloud Server 3 options to retrieve Web portal - pdf, excel, QA/QC, edit Custom reports GIS - CMMS - Work Order

Challenges Defining asset management & communicating it to workforce Developing required systems & processes Getting buy in Lack of asset data Lack of capabilities in the workforce

Opportunities Leverage existing tools/software Leverage knowledge of employees Enhance practices that are in place Review, update and expand existing program Track progress

One size does not fit all Taking the First Steps Define goals/objectives with Asset Management Performance and Service Level Goals Business Process Initiatives Processes Procedures Standards Staff Understand systems that are already in place Asset Management Strategy One size does not fit all

Key Approaches Identify changes required to deliver greatest benefit Create a road map that addresses unique cultural, organizational, resources, and asset issues Take into account inhibitors to success

Asset Management Program

Organizational Issues Mission and Goals clearly defined (Strategic Plan) Performance measures Population served Organization complexity (silos) Change readiness

People Issues Resistance to Change Experience Training Understand importance Show benefit of activity Make future work easier Experience Training Look for a change to acceptance diagram

Lifecycle Process & Practices

“Information is not knowledge.” Data vs Knowledge “Information is not knowledge.”

Information Systems GIS systems Customer information/billing systems Hydraulic models Computer maintenance management systems SCADA Paperless work order management systems Mobile applications Enterprise management software

A few software

Information Systems Deployment 70% system implementation fail Inadequate change management Matching system configuration to the process/functional requirements of the organization Get to know your software developer before making a purchase Look to improve the use of a software

Get to know Software Company Response time? Number of updates every year? How do they roll those updates out? Will we incur additional staffing or training expenses post-implementation? What does my maintenance expense cover? How many account managers per customer? Resources for help? Do you handle your implementations or does a 3rd party? Do I own my data? Where is my data to reside?

Improvements to Existing Software Input Output Integration Where is the data coming from Reports GIS Searches Planning Filters Inventory Who is inputting data Billing How is data formatted QA process for data

Service Delivery Level of Service requirements Regulatory Non-Regulatory Current levels of service Condition Reliability Repair or outage response times Growth of service requirements

Implementation Many ways to start Work plan with objectives Measure progress Ongoing training and mentoring

Success Factors for Implementation Demonstrate value – quick wins Find champion(s) Communicate internally/externally Expectation management Training/skill building is important Participation, communication & education

Success Factors for Implementation Create short and long term goals Develop work plan Ensure people have time and commitment to program Incremental implementation may help with staff resistance Embed it into every day activities (i.e. data collection during maintenance activities)

Continuous Improvement Plan Do Check Adjust

CUPSS Training EPA’s Free Software – Check Up Program for Small System 3 Training sessions beginning 9/15/16 1:00 – 3:00 PM SCRWA – Fiscal Sustainability Planning & Asset Management Workshop 9/21/16 8:30am – 4:30pm

Resources Asset Management: A Best Practices Guide, EPA, April 2008 Rose, Duncan. "Strategic Asset Management and Communication: Decision Analysis/Implementation Guidance." Water Environment Research Foundation (2010). Water Environment Research Foundation. Web. 5 Sept. 2015. http://www.werf.org/a/ka/Search/ResearchProfile.aspx?ReportId=SAM1R06c Graf, Walter. “Assessing Utility Practices with the Strategic Asset Management Gap Analysis Tool (SAM GAP) " Water Environment Research Foundation (2010). Water Environment Research Foundation. Web. 7 Sept. 2015. http://simple.werf.org/UploadFiles/SAM2C06 2014 Strategic Directions: U.S. Water Industry. Black & Veatch, 2014. Asset Management: A Guide for Water & Wastewater Systems 2006 Edition: Environmental Finance Center, New Mexico, 2006. Asset Management Resources. (n.d.). Retrieved September 12, 2015. http://water.epa.gov/infrastructure/sustain/am_resources.cfm

thank you Contact Information Margaret McCarthy mccarthym@wseinc.com 800-SAMPSON