1. the real cost of modernisation Phil Hoare Head of Customer Support

2. Goulburn-Murray Water A little bit on me What I’m not talking about summary Who we are...

3. modernising the business

4. Staff Field maintenance Delivery system Operations Asset management I.T.Systems & software real cost

5. Field operators –Manual v’s Auto 50% –Up skilled for Level 1 & 2 Field Maintenance –Additional Elec/Mech Tech Officers Level 3 Field Maintenance Radio Communication Support Planners v’s System Operators 50% –8 hour v’s 24/7 operations –(System monitoring plus tech support) Training staff

6. operational cost reductions

7. features of modernised service standards expectations Reduced order notice for delivery More consistent flow rates Increased flow rates Functionality of outlets Instant confirmation Increased staff access

8. proposed service standards

9. maintenance Vandalism & theft –Solar panels –Cables –Batteries Ants, batteries, level senses, electronic boards, motors & gear boxes Site maintenance - Level 1–2, ITP’s operational staff - Level 3, field technicians Delivery system - Access tracks - Capacity constraints - Weed control - Surveillance & inspections

10. office modernisation Accommodation 24/7 Disaster recovery Driving cost efficiencies & service improvements Operations System performance Maintenance Customer interaction & experience I.T. Systems Field computing –Diagnostics, navigation, support requests & operational activities

11. asset management Active v’s Passive Multiple short life components Data intensive Pro-active v’s Re-active Inventory management –Rotatable assets & warranties W.O.L. Analysis & modelling

12. regular RCM/FMECA reviews Look at equipment causing the highest costs Identify the root cause of the failure Consider options to prevent the failure (Preventative maintenance, design out, fixed time maintenance, run to fail) Consider the costs of the options Plan action Test action Monitor action Adopt/modify/reject (continual improvement)

13. typical maximo work order data

14. FMECA Hierarchy (Parent-Child-Failure) The FlumeGate FMECA Model

15. current observed trends Some failure frequencies are rising –Time in use Some failure costs are rising –Labour –Service vehicle costs –Raw materials –Parts

16. current observed trends Some failure frequencies are falling –Improved parts –Improved software –Improved planned maintenance & removal of design flaws Some failure costs are falling –Supplier parts –Raw materials (aluminum) –Repair efficiencies (MTTR) –Repair planning – reducing travelling time (GIS, GPS)

17. maintenance costs Cost trends are changing year by year Failure frequencies are changing year by year Different equipment is now failing

18. License Fee’s –Upfront capital v’s Annual Support & Maintenance Updates & Bug fixes, Level 3 support Development –Continuous improvement –System performance –New functionality software

19. The benefits & costs

20. conclusion INDUSTRY WORKING TOGETHER Complexity Flexibility Opportunities Cost Service Satisfaction Efficiency

21. any questions?