1. Long Term Capital Works Planning - An Evidenced Based Process
Vivek Kangesu
BSc Eng (Hons), MBA, MIEAust, CPEng, RPEQ
Key Asset Management Areas for Financial success
- Townsville City Council

2. Long Term CapEx Planning
- Key Areas for Success
AM Financial Success - Key Areas:
Corporate Asset Management structure
Strategic Planning
Operate and maintain the assets - AM Systems ( catalogue, independent systems, databases, integrated/linked systems
Condition / risk evidence assessments – Understand the corporate vision and implement bottom up approach.
Upgrade / renewal / New CapEx Plan – efficient and effective – communications between delivery departments / weather/ resources / rate impacts…etc…
Engineering view and financial view – cost cutting , Have to be done , can deliver?

3. Long Term CapEx Planning - Key Area: Leadership & Team
AM Financial Success - Key Areas:
Corporate Asset Management structure
Strategic Planning
Operate and maintain the assets - AM Systems ( catalogue, independent systems, databases, integrated/linked systems
Condition / risk evidence assessments – Understand the corporate vision and implement bottom up approach.
Upgrade / renewal / New CapEx Plan – efficient and effective – communications between delivery departments / weather/ resources / rate impacts…etc…
Engineering view and financial view – cost cutting , Have to be done , can deliver?

4. Lead without removing responsibilities
Key Area 1
Corporate &
Operational Asset Management
Corporate AM –
Lead without removing responsibilities
Economies of Scale Asset Management Projects
Team decisions
Communication
Goals & Success
Corporate Directions
Legislative requirements
Annual Returns / performance Mgt
Consolidate, Analyse, Prioritise Capital Works
Training
Systems & models ….
Corporate & Operational Asset Management
One AM department Vs Corp & Oper. AM Departments ,
SWOT,
CAM lean structure,
Authority, Leadership
Benefits

5. Long Term CapEx Planning - Key Area: Works Management
Operate, Maintain and maintain LOS:
Maintain the LOS / Improve the level of services
Define operations Vs Maintenance
Understand the current maintenance pattern ( cost / customer calls)
Reactive maintenance definition – asset / equipment function failure or customer calls for service
Pro-active maintenance – preventive / planned
Maintenance budget allocation – Council commitment for major failures and less budget for proactive and reactive maintenance costs
The impact on preventive maintenance
Maintenance monitoring – monthly reports, alerts, MTBF ..etc….

6. Long Term CapEx Planning - Key Area: Works Management
Operate, Maintain and Improve LOS

7. Long Term CapEx Planning - Key Area: Works Management
Operate & Maintain
One paradigm in one year improvement
Improve up to cost effective level (RCM – high cost)
Risk based maintenance – Risk / consequences/likelihood methodology Vs Failure/Mode/Cause/Effect analysis ( bottom up approach)
Innovative / creative – operators maintenance / history / QA forms / alerts /
Indirect cost savings
20% invest 80% results

8. Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP)
Key Area 2
Long Term CapEx Planning
- Evidence Based Treatment Projection (EBTP)
Assets register (Fixed Assets)
Equipment registers (Component)
Works management ( Operation & Maintenance) , Calls Management
Project management
Purchasing module
Financial module (General Ledger, Accounting payable, receivable)
Pavement Management System
Condition Monitoring / Risk assessment / Failure Modes, Causes capture modules/ Inspections records
Pips Condition - CCTV System
Asset/equipment description
Location, facility
Replacement value
Current value
Economic life
Remaining life
Age
Condition
Risk score
Reactive maintenance cost
Planned maintenance cost
Preventive maintenance costs
New/upgrade capital works
Renewal costs
Depreciation
Failure modes and cause
Maintenance history
Customer calls for services
Service costs
AM Systems
Evidences
Condition / risk / Evidence Based Assessment

9. Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP)
Key Area 2
Condition / risk / Evidence Based Assessment

10. Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP)
Key Area 2
Condition / risk / Evidence Based Assessment

11. Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP)
Key Area 2
Long Term CapEx Planning
- Evidence Based Treatment Projection (EBTP)
10 Year Renewal CapEx Plan
Maintenance Optimisation / Remaining Life Assessment
Condition / risk / Evidence Based Assessment

12. Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP)
Key Area 2
Long Term CapEx Planning
- Evidence Based Treatment Projection (EBTP)
Condition / risk / Evidence Based Assessment

13. Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP)
Key Area 2
Long Term CapEx Planning
- Evidence Based Treatment Projection (EBTP)
Condition / risk / Evidence Based Assessment

14. Long Term CapEx Planning - Department/ Asset Class / Major Project)
Key Area 3
Long Term CapEx Planning
- Department/ Asset Class / Major Project)
Evidenced Based Treatment Projection –
ebtp / renewal
Pavement Management System –
Renewal
Planning Reports
New/Upgrade
Council
Committed
Projects
Subdivisional assets/ funding/IF charges/PIP
10 Year CapEX Planning - Department/Asset Class / Major Project

15. Long Term CapEX Planning -
Key Area 3
Long Term CapEX Planning -
Asset Information Consolidation & Evaluation- AiCE
10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

16. Long Term CapEX Planning -
Asset Information Consolidation & Evaluation- AiCE
Key Area 3
10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

17. Long Term CapEX Planning -
Asset Information Consolidation & Evaluation- AiCE
Key Area 3
10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

18. Long Term CapEX Planning -
Key Area 3
Long Term CapEX Planning -
Asset Information Consolidation & Evaluation- AiCE
10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

19. Long Term CapEX Planning -
Asset Information Consolidation & Evaluation- AiCE
Key Area 3
10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

20. Long Term CapEX Planning -
Asset Information Consolidation & Evaluation- AiCE
Key Area 3
10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

21. Long Term CapEX Planning -
Asset Information Consolidation & Evaluation- AiCE
Key Area 3
10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

22. Long Term CapEX Planning
Key Area 3
Long Term CapEX Planning
- Prioritisation
10 Year CapEX Planning - Analysis & Prioritisation
Under Improvements

23. Long Term CapEX Planning
Key Area 3
Long Term CapEX Planning
- Prioritisation
10 Year CapEX Planning - Analysis & Prioritisation
Under Improvements

24. Long Term CapEX Planning
Key Area 3
Long Term CapEX Planning
- Prioritisation
10 Year CapEX Planning - Analysis & Prioritisation
Under Improvements

25. Long Term CapEX Planning
Key Area 3
Long Term CapEX Planning
- Prioritisation
10 Year CapEX Planning - Analysis & Prioritisation
Under Improvements

26. Long Term CapEX Planning
Key Area 3
Long Term CapEX Planning
- Prioritisation
10 Year CapEX Planning - Analysis & Prioritisation
Under Improvements

27. Long Term CapEx – New/Upgrade
Key Area 3
Long Term CapEx Planning
- Performance
Long Term CapEx – New/Upgrade
Acquisition Year / Funding / Subsidy/Grant/Donation/ Nett /O&M impacts
Donated assets
Infrastructure Charges (PIP) /Year/O&M impacts
Plan & Acquire :
Plan for new/upgrade/renewal…
Renewal – Evidence based, condition based, risk based models…
New – donated assets, identify estimated costs for FMP, understand the IFCs, the funding trunk infrastructure, ..
New/upgrade – understand the O&M impacts, rate increase,
demonstrated achievability,
population growth, approximate calculations for rate impact,
New/upgrade/renewal planning indicators..
Communications with project deliver departments
Internal & external resources, weather pattern, suppliers, contractors, etc..
Current year budget and capex reconcile

28. Long Term CapEx Planning
- Performance
Key Area 3
Plan & Acquire :
Plan for new/upgrade/renewal…
Renewal – Evidence based, condition based, risk based models…
New – donated assets, identify estimated costs for FMP, understand the IFCs, the funding trunk infrastructure, ..
New/upgrade – understand the O&M impacts, rate increase,
demonstrated achievability,
population growth, approximate calculations for rate impact,
New/upgrade/renewal planning indicators..
Communications with project deliver departments
Internal & external resources, weather pattern, suppliers, contractors, etc..
Current year budget and capex reconcile

29. Long Term CapEx Planning
- Key Areas for Success
Evidence Based Treatment Projection [EBTP] for renewal projection, residual life assessment, and proactive maintenance optimisation
Prioritise capital works to support Financial Planning
Assess the capital works planning process for sustainability
TCC AM Standard Model - End in Mind

30. Questions Vivek.kangesu@townsville.qld.gov.au Vivek KangesuM:
Plan & Acquire :
Plan for new/upgrade/renewal…
Renewal – Evidence based, condition based, risk based models…
New – donated assets, identify estimated costs for FMP, understand the IFCs, the funding trunk infrastructure, ..
New/upgrade – understand the O&M impacts, rate increase,
demonstrated achievability,
population growth, approximate calculations for rate impact,
New/upgrade/renewal planning indicators..
Communications with project deliver departments
Internal & external resources, weather pattern, suppliers, contractors, etc..
Current year budget and capex reconcile