Supporting The Requirements of Victoria's Asset Management Accountability Framework
Supporting The Requirements of Victoria's Asset Management Accountability Framework
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Asset Management Accountability Framework, February 2016, State of Victoria Department of Treasury and
Finance
AMAF AMAF AMAF Area AMAF Requirement or C55 Support for the
Requirement Chapter Guidance Requirement or Guidance
7 and 9. 3.1.2 Allocating All asset management C55 has elaborate approval
asset activities must only be carried workflow and
management out under proper role/responsibility
responsibility authorisation, including management. This ensures
appropriate financial and any and every decision is
other delegations. reviewed and/or approved by
Accountable Officers must the relevant management
document who is responsible level.
and accountable for decision
making in relation to varying
stages of an asset’s lifecycle.
Guidance 3.1.4 Key In order to ascertain the The Copperleaf Value product
Performance performance of an offers a rigorous and user-
Indicators organisation’s assets, key friendly environment to
performance indicators (KPIs) define, manage and visualize
should be established. KPI’s and other metrics used
Establishing KPIs and targets by an organisation to drive its
for assets should be driven by decision making.
government policy objectives, These metrics are typically
established service standards, directly linked to government
and available resources. policy, strategic objectives,
and established service
standards.
17. 3.1.4 Reporting to Through its asset information C55 includes a rich set of
Government management system (AIMS), standard dashboards and
an Accountable Officer must reports—covering asset
also ensure that the information, project and
organisation can provide program details and
relevant asset information justifications, portfolio
and performance data to content and valuation,
government/central agencies optimisation results, and
as required, and is flexible execution performance.
enough to respond to
reasonable information
reporting requests by the
Government.
20. 3.2.2 Asset A key requirement of the Asset lifecycle strategies per
management AMAF is for Accountable asset type or class can be
strategy Officers to develop an asset developed and optimised in
management strategy for C55, and rolled up to cover
their organisation’s entire the entire asset base. The
asset base over the whole Value Framework in C55
asset lifecycle on a portfolio enforces the use of consistent
basis. decision-making criteria
aligned with the agency’s
strategic objectives, ensuring
that all asset plans are
developed and evaluated with
the same overall goals in
mind.
21a. 3.2.2 Asset The strategy must outline The service delivery
management how the Accountable Officer objectives are translated into
strategy will use the organisation’s specific metrics in the Value
assets to support its service Framework, which is then
delivery objectives and used to evaluate every
incorporate planning for proposed intervention. C55
assets (including proposed manages the full lifecycle of
upgrades, acquisitions and each proposed intervention—
disposals) over different from identifying a long-term
periods of time (e.g. short generic asset intervention
term: one to three years, need; to the medium-term
medium term: four to nine development of rigorous and
years, and long term: 10 or comparable business cases;
more years). and the short-term selection
of optimal portfolios of
funded, resourced and
properly planned asset
interventions.
22. 3.2.2 Risk As part of their asset C55 can easily identify and
management management strategies, highlight:
and Accountable Officers must
the risks attached to
contingency incorporate asset risk
every individual asset
planning management planning, which
or class
describes the risk
the evolution of these
management strategies and
risks over time, and
actions (e.g. treatment plans)
the risk mitigation
to be implemented for assets
strategies in place for
under their control.
each asset (or the lack
thereof).
The Predictive Analytics
module is used to identify
risky assets and propose
mitigation strategies, which
can then be converted into
proposed projects and
submitted for approval using
C55’s Investment Decision
Optimisation functionality.
23. 3.2.2 Risk Accountable Officers must C55 can at any time show the
management continue to monitor and evolution of the risk profile of
and evaluate the effectiveness of an asset portfolio. Risk
contingency their risk management tolerance thresholds can be
planning measures on a regular basis defined to ensure that asset
and, if necessary, redefine intervention decisions are
them. made in adherence with these
constraints, thereby ensuring
the effectiveness of the
agency’s risk management
measures.
Guidance 3.2.2 Risk When developing asset risk Every individual asset or class
management management plans, has its own asset degradation
consideration should be given model within C55. This allows
to examining risks across the the system to predict an
whole asset lifecycle. asset’s risk evolution over its
entire lifecycle, and
recommend suitable asset
interventions at various
points of the asset lifecycle.
Guidance 3.2.2 Planning for Accountable Officers should C55 uses techniques such as
uncertainty incorporate planning for Monte Carlo simulation to
uncertainty and real options model uncertainty for specific
in their organisation’s long- aspects of risk.
term service planning, asset Additionally, agencies can
management strategies and develop real options for
risk management and uncertain scenarios by varying
contingency planning. configurable fields, to for
instance explore the effect of
potential changes in service
delivery demand.
Guidance 3.2.3 Business When developing business The Asset Aware functionality
cases for new cases for new asset of C55 automatically links
asset proposals, organisations existing asset condition and
proposals should utilise information risks to business cases for
they have collected through new asset proposals. This not
their AIMS and asset only simplifies the
management strategy to development of business
demonstrate the need for cases, it also ensures that if a
additional investment. business case is deferred, the
Business cases should factor justification is automatically
in all relevant capital and updated based on the
output costs, including any evolving risk of the underlying
output price increase assets.
required to offset additional Business cases in C55 can
capital assets charge and include a full cash flow
depreciation costs (if analysis for all capital and
applicable). operational expenditures, and
for any required output price
adjustments.
35. 3.4.3 Information Information in the AIMS must Access to asset, investment,
management be readily accessible to and portfolio information in
individuals who are C55 can be managed based
accountable for the control on responsibilities and roles,
and management of a using single sign-on (SSO)
nominated asset or group of protocols.
assets.
41. 3.5 Disposal Accountable Officers must Disposal decisions are treated
comply with relevant in the same way as any other
approval processes and, key asset decision in C55:
where possible, select a options or alternatives (e.g.
disposal method including replacement or
retirement, replacement, redeployment) can be
renewal or redeployment, captured and valued—
that maximises the financial allowing the agency to make
benefits associated with the informed decisions that
disposal. maximise the overall value to
the agency. Workflows within
C55 ensure that disposal
decisions follow the
appropriate approval cycles.