International Case Studies in Asset Management

Contents Preface ix
List of contributors xi
Introduction 1
Section 1: Introducing asset management 7
1 Case study: Wessex Water 9
1.1 Background and context 9
1.2 How asset management evolved at Wessex
Water 11
1.3 Strategic direction shaped by relationships
with stakeholders 18
1.4 Conclusions 19
Discussion questions 20
References 20
2 Case study: Dublin Airport Authority 21
2.1 Background and context 21
2.2 Restructuring around asset management 22
2.3 Approach 24
Box 2.1 Extracts from the DAA asset management
terms of reference document 29
2.4 Outcomes and conclusions 37
Discussion questions 38
References 38
3 Case study: Arts Victoria 39
3.1 Background and context 39
3.2 The requirements 40
3.3 The situation 41
3.4 What was done – functional spaces 42
3.5 What was done – service levels 43
3.6 Conclusions 45
Discussion questions 47
References 48
4 Case study: South West Water 49
4.1 Background and context 49
4.2 Effective planning 52
4.3 Investment optimisation 53
4.4 Conclusions 55
Discussion questions 56
References 56
5 Case study: City of Calgary 59
5.1 Background and context 59
5.2 Introduction of asset management 59
5.3 Performance measures 64
5.4 Conclusions 65
Discussion questions 65
References 65
6 Case study: Scottish Water 67
6.1 Background and context 67
6.2 Multiple strategies within a defined
framework 67
6.3 A structured hierarchy for strategies and
plans 68
6.4 Conclusions 77
Discussion questions 78
References 78

Section 2: Becoming an asset management
organisation 81
7 Case study: Grand Port Marine du Havre 83
7.1 Background and context 83
7.2 Requirements 83
7.3 Development process 84
7.4 Prediction of performance over time 94
7.5 Prediction of future maintenance requirements 96
7.6 Prioritising maintenance interventions 96
7.7 Outcomes and conclusions 98
Discussion questions 98
References 98
8 Case study: Network Rail 99
8.1 Background and context 99
8.2 Laying the foundations 101
8.3 Establishing asset management processes 102
8.4 Conclusions 105
Discussion questions 106
References 106
9 Case study: ScottishPower Generation 109
9.1 Background and context 109
9.2 The Operational Transformation Programme 110
9.3 Stage 1: create a vision and strategy 111
9.4 Stage 2: establish leadership 116
9.5 Staff awareness and communications 117
9.6 Conclusions 117
Discussion questions 119
References 119
10 Case study: City of Cambridge 121
10.1 Background and context 121
10.2 Information and knowledge management 122
10.3 Business process improvement 123
10.4 Technology adoption 125
10.5 The capital planning process 126
10.6 Conclusions 127
Discussion questions 129
References 129
11 Case study: London Underground 131
11.1 Background and context 131
11.2 Asset management and the PPP contracts 132
11.3 Integrating asset management 134
11.4 Conclusions 138
Discussion questions 139
References 139
12 Case study: RailCorp 141
12.1 Background and context 141
12.2 Conclusions 144
Discussion questions 144
References 144

Section 3: Value and performance
improvement 145
13 Case study: SP AusNet 147
13.1 Background and context 147
13.2 Impact of PAS 55 149
13.3 Conclusions 152
Discussion questions 154
References 154
14 Case study: City of Hamilton 155
14.1 Background and context 155
14.2 The analysis 156
14.3 Generational differences 157
14.4 Intergenerational fairness 157
14.5 Putting a price on fairness 158
14.6 Uneven asset bubbles that move through time 159
14.7 Social policy – whose responsibility is it? 160
14.8 Level of service for long-term care facilities 161
14.9 Important Related Initiatives 162
14.10 Conclusions 163
Discussion questions 163
References 163
15 Case study: Rio Tinto 165
15.1 Background and context 165
15.2 Aims and scope of the AMPDP 166
15.3 Strategy for programme development 167
15.4 Identification of learning partners and
responsibilities 167
15.5 Programme design 168
15.6 Managing engagement across the business 170
15.7 Measuring performance 170
15.8 Conclusions 173
Discussion questions 174
16 Case study: Euroports 175
16.1 Background and context 175
16.2 Introducing asset management planning 175
16.3 AMP2 changes and improvements 177
16.4 AMP2 report template 179
16.5 Conclusions 183
Discussion questions 185
References 185
17 Case study: KPMG 187
17.1 Background and context 187
17.2 Quality of financial-technical asset data 189
17.3 Initial harmonisation of technical data and
accounting data 190
17.4 Accounting purchase price excluding added
values and client interventions 190
17.5 Conclusions 199
Discussion questions 200
References 200

Section 4: Observations – Investment,
risk and returns 201
18 Observations – Investment, risk and returns 203
18.1 Introducing asset management 204
18.2 Becoming an asset management organisation 206
18.3 Value and performance 208
18.4 Conclusions 210
References 212
Index 213