2016-09-06 S&O Committee - Attachment 1 to Item 2 - Asset Management Roadmap

ISO 55001 Reference:
          8.3     Outsourcing: The organisation shall determine:
                  a)        the processes and activities that are to be outsourced (including the scope
                            and boundaries of the outsourced processes and activities and their
                            interfaces with the organization’s own processes and activities);
                  b)        the responsibilities and authorities within the organisation for managing the
                            outsourced processes and activities;
                  c)        the processes and scope for the sharing of knowledge and information
                            between the organisation and its contracted service provider(s);
Potential Benefits:
Alignment of Council’s asset-oriented contracts with the Asset Management System will ensure
greater visibility of asset status and consistency of asset management outcomes regardless of the
party responsible for asset oversight.
Scope of Work:
  Task     Task Description                           Resources   Approx.     Delivery    Deliverable /
  No.                                                             Duration    Timeframe   Outcome
  1        Capture of asset management                  Council    2 Months   Medium to   Contracts
           requirements in Contracts.                                         Long        accurately and
                                                                                          consistently
                                                                                          address asset
                                                                                          management
                                                                                          requirements
  2        Develop Guidelines for alternative Forms     Council    2 Months   Long        Asset
           of asset management contracting.                                               Management
                                                                                          Contracting
                                                                                          Guidelines



Define Asset Management Handover Procedures
Description of the Initiative:
The first task under this initiative identifies the need to consider asset management objectives and
outcomes in the asset handover procedures currently being developed as part of Council’s Project
Delivery Toolkit initiative. Specific outcomes sought by this task will include:
      •   Ensuring assets delivered for Council are in accordance with relevant Standards and are
          capable of meeting all associated Levels of Service both at hand-over and into the future;
      •   Streamlining capture of asset inventory data by Council asset information systems at
          contract hand-over; and
      •   Ensuring transfer of all asset operation and maintenance requirements to Council on
          completion of the contract defects liability period;
The second task under this initiative is to document the procedures that will be applied at asset
creation or hand-over to ensure that all assets are appropriately and consistently capitalised. These
procedures will include Council business rules, linked to relevant asset accounting standards, to:
      •   Determine the asset materiality threshold;
      •   Establish rules that be applied to inform the level of asset componentisation;
      •   Define the cost inputs to consider when determining asset capital value; and
      •   Document the workflow that will be followed from creation / acquisition of the asset to
          recording of the asset on Council’s asset register;
                                           ASSET MANAGEMENT ROAD-MAP REPORT                                33