CROWN PROPERTY FORUM 2018 - INFORMATION FOR DECISION MAKING 4th April 2018 - Crown Property Network
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CROWN
PROPERTY FORUM
2018
INFORMATION FOR DECISION MAKING
4th April 2018
Cliff Henderson Asset Assurance Manager • Construction / Maintenance for past 39 years • Background • Electrical Apprentice / NZCE • Project Management • Senior Management • New Zealand / Thailand / Papua New Guinea • Private FM sector 21 years - started with Department of Corrections December 2016 • Based in Auckland - Report into National Property Team, Wellington
10,700
30,000
4,100
External Strategic Asset Management Team Internal
Spotless Asset Assurance OPEX
AM / FM Provider
Manager
• Strategy
Custom Fleet CAPEX
• Initiatives development
Fleet PAR / Projects
• Finance
• Reporting
Honeywell • Region / National Support AMP
Security - Prisons • SLT/ELT Interface (Asset Management Plan )
Information & Data • Quality Audits Asset Risk &
Chubb • H&S Observations
Security - CCS Analyst • External engagement
Compliance RMA
• System Management • BCP validation / testing (Resource Management)
• Data validation (SPM) • Utility Capacity
• Report formatting • Resilience tracking ES
Ministry of Justice • Asset • Compliance Certificates (Electronic Security Team)
• Finance • BWOF tracking
• Trent analysis • Fire Schemes
Police • Anomalies Identification • HAZNO Forecasting
• AMP Maintenance • Asbestos Register & Budgets
Treasury
LTIP
(Long Term Investment Plan)
Audit NZ
SPM / ICR
Technical Asset Advisor Technical Asset Advisor Technical Asset Advisor (Investor Confidence rating)
Land Information NZ (Northern/Central) (Central/Lower North) (Southern)
• Asset Audits / Validation • H&S Observations • DR Support BCP / BIA
Fire and Emergency
• Technical reviews • Proposal review • CCS Support
• Site Interface / Support • Investigations & Reporting
Local Councils (BWOF) Resilience
Prison & Community Services - Operations
Strategic Asset Management
Mission Statement
Provide safe and fit for purpose operational facilities today
and into the future, through the provision of strategic asset
management combined with robust financial planning.
Information for Decision Making
Forum Themes
• Challenges – Large diverse and often aging
portfolio with changing use, requiring
long/short term financial considerations.
• Opportunities – To make a difference based
on scale and effective engagement within
government and private sector.
• Our responses – reduce risk, drive change
and leverage technology
Information for Decision Making
– Capturing and maintaining information/data that is robust and
relevant
– Do the basics well (90% of the challenge)
– Effective access to information/data and ability to interrogate
– Support the business as a whole
– Improve health and safety
– Reduce risk and improve resilience
– Improve efficiencies and reduce costs
– Implementation of environmentally sound initiatives
Reason for Effective Reporting
• All time poor
• Often limited time with:
• Senior Leadership Team (SLT)
• Executive Leadership Team (ELT)
• Stakeholders
• Effective & robust decision making in a timely manner
13,000,000 Data Fields
26 Fields per Asset
Circa 500,000 AssetsCritical Assets
“Assets which failure will impact on the normal operation of the facility”
System Asset Types on site
Power – Mains Supply Transformers, Main Switchboards, Mains Cables
Power – Local Supplies Distribution Boards, Sub-mains Cables
Critical Power Uninterruptable Power Supplies (UPS)
Fire Protection Fire Pumps, Fire Sprinklers, Fire Alarm and Evacuation, Gas Suppression, Fire Hydrants, Fire Mains
Water – Potable Water Main, Water Valves, Water Tanks
Water – Sewer Sewer Transfer Pumps, Macerators, Pits, Pipes, Valves
Water – Hot water Boilers, Chlorifiers, Pumps, tanks and Cylinders
Water – Storm Water Drains, Soak Pits, Pipes
Gas Reticulation Gas Mains, Gas Valves
Heating Heating systems of Cells and common areas
Building Management System (BMS) BMS Systems, Controllers & Power Supplies
Lifts Lifts, Controls & Interfaces
Security, Access & Roads Sally Port Doors, Access Gates/ Doors Cells Doors, Security Locks, Roads
Air Conditioning and Ventilation Air Handling and Fan Coil Units, Boilers, Chillers, Exhaust Fans, Heat Pumps
Kitchen Equipment Dishwasher, Ovens, Mixers, Kettles, Food Preparation Eq, Refrigeration
Laundry Equipment Washing Machines, DriersCritical Assets
Risk Rating Assessments
IMPACT (Consequence of Failure)
Minimal Minor Moderate Significant Severe
Almost Certain 15 (M-H) 19 (M-H) 22 (H) 24 (H) 25 (H)
Highly Probable 10 (M) 14 (M-H) 17 (M-H) 21(H) 23 (H)
LIKELYHOOD
Possible 6 (M-L) 9 (M) 12 (M-H) 18(M-H) 20 (H)
Unlikely 3 (L) 5 (M-L) 8 (M) 13 (M-H) 16 (M-H)
Improbable 1 (L) 2 (L) 4 (M-L) 7 (M) 11(M)Critical Assets
25
18
13
7
Design Maintenance OperationsDevelopment Structure
National
Northern Central Lower North Southern
• Whanganui Prison • Christchurch Men’s Prison
• Northland Region Corrections Facility
• Spring Hill Corrections Facility • Hawkes Bay Regional Prison • Christchurch Women’s Prison
• Auckland Prison
• Waikeria Prison • Manawatu Prison • Rolleston Prison
• Mt Eden Corrections Facility
• Tongariro/Rangipö Prison • Rimutaka Prison • Otago Corrections Facility
• Auckland Region Women’s Facility
• Arohata Prison • Invercargill PrisonInformation Capture Example Only
Example Only
Site Summary
Break BreakExample Only
Portfolio Summary
Facility
Maximum Average
Current Target Delta Current Target Delta
Region Total 18 11 7 11 8 3
Facility 1 16 11 5 11 9 2
Facility 2 18 11 7 11 8 3
Facility 4 16 11 5 12 8 4
Facility 5 20 11 9 11 8 3
Region 18 11 6 10 8 3
Facility7 16 11 5 9 8 2
Facility 8 18 11 7 11 7 4
Facility 9 16 11 5 11 8 3
Region 20 11 8 13 8 5
Facility 10 18 11 7 14 8 6
Facility 11 20 11 9 13 8 5
Facility 12 18 11 7 12 7 5
Facility 13 20 11 9 12 7 5
Facility14 20 11 9 12 8 4
Region 18 11 6 11 8 3
Facility 15 18 11 7 11 8 3
Facility 16 18 11 7 11 8 3
Facility 17 16 11 5 11 9 2
Facility 18 16 11 5 11 8 3
Facility 19 18 11 7 13 9 4Resilience Summary Example Only
Asset Performance Example Only
Days
Key for bar chartRisk & Cost (In Development) Example Only
Days
Key for bar chartForecasting Example Only
Days
Key for bar chartFACILITY SYNOPSIS - XXXX Draft for Discussion
21/2/ 2018 Net Book Value: $38M Replacement Value: $117M Prison Director: XXXXXX Produced By: Cliff Henderson
CURRENT OVERVIEW (CUSTODIAL) FUTURE REQUIREMENTS (CUSTODIAL) SITE SPECIFIC EXTERNAL CONSIDERATIONS (PROPERTY)
With the high muster pressure nationally XXXXXXX at the date of developing this report was 1. The site backs on to a flood plain and while in recent times there has not been an issue, with recent extreme weather events this will need to be monitored and
running at XX% capacity with XX prisoners, 124 (44%) of which are remand and 210 (75%) high It is currently projected that the muster level will remain at the current managed appropriately
security. level for the next 3 - 4 years and the site will remain as a transit site for 2. The Western security fence has a backup / construction manual access gate but given the surface and fall on the ground externally has limited use.
With current muster pressure all facilities will form part of any decant or disaster recovery XXXXX. 3. Given the close proximity of the front security fence to the public road this is posing operational challenges.
requirement, but XXXXXXX potentially has a higher demand given proximity to XXXXXX if a
Previous Current
localised event in XXXXXX occurs. Based on the above it is intended that Offender Employment programs POOR AVERAGE GOOD
Over the last 12 months there has been a renewed focus on the XXXX Facility with a number of and training programs are increased to XXXX (% of prisoners..????)
potential initiatives and enhancements are being developed as reflected in this document.
BUILDINGS & INFRASTRUCTURE (PROPERTY)
OPERATIONAL LOGISTICS / CHALLENGES (CUSTODIAL) The site since originally opened in XXXX has had a number of alterations and developments undertaken over the years. While generally the building structure is sound the
internal surfaces, external cladding and fixtures & fittings have deteriorated. This has been exacerbated by the reduced level of maintenance given the uncertain future use
XXXXXXXX is currently a Transit site for XXXXXXXXXXXXXXX region and as such has a “high” number of movements. of the facility.
1. Original facility was designed for 48 Remand prisoners currently 124 . This appears to contributing to the high level of reactive maintenance calls and subsequent cell With the future use of the XXXX facility being in question for a number of years investment in the facility has been limited to minor repairs in recent times.
availability challenges. Previous Current
2. With limited AVL capabilities the police are currently undertaking morning and mid-day transfers. POOR AVERAGE GOOD
Previous Current
POOR AVERAGE GOOD LAND & LAND USE (PROPERTY) ELECTRONIC SECURITY (ES) (PROPERTY)
While a number of standard RMA requirements exist the following key items exist: Annual maintenance including upgrades are continuing
OFFENDER EMPLOYMENT & PROGRAMS (OFFENDER EMPLOYMENT) - Current designation XXXXX prisoners so running at XXXXX% • Proposed system upgrade in 2022
Course # of Description - Water discharge at XXXXX is at XXXX%
participants
Hospitality Training 8 The Hospitality training course is embedded within the Commercial Kitchen. Learners develop their knowledge and skills of a range of roles required for Previous Current Previous Current
Commercial Catering and hospitality. POOR AVERAGE GOOD POOR AVERAGE GOOD
•The National Certificate in Hospitality Level 2
Carpentry Training 14 Provides prisoners hands on training in the theory and practical aspects of introductory carpentry and construction. Learners undertake a range of minor
carpentry products as project work which are sold or used to beautify the prison : RESILIENCE CAPABILITY (PROPERTY) Summary
•The National Certificate in Building, Construction, and Allied Trade Skills Level 2 This facility has one of the highest overall resilience levels / capability sites. It also has a varied options in relation to
•Short Certificate in Carpentry Level 3
heating and a high level of stored diesel on site. With the alternative heating sources the demand on the bottled
OE - Kitchen 18 Kitchen prisoners are employed under supervision of Offender Employment Instructors to provide the prison population with three nutritional meals a gas supply is limited which is reflected in the resilience level.
day from a national menu. All areas of prison catering operate under an approved food safety programme. Prisoners are supported to learn on the job
towards the National Certificate in Cookery Level 2 and 3
Given a the additional diesel on site is stored in a separate storage tank a review is underway to formalise a safe
OE – Grounds 15 Grounds Maintenance work parties maintain and improve Corrections land assets through cleaning, mowing, trimming, planting and maintaining and efficient manner to transport the diesel when required
gardens. Prisoners are supported to learn on the job towards the National Certificate in Horticulture Level 2 (and above).
Previous Current
POOR
OE - Contract Works 16 AVERAGE
Contract work Parties provide a range of services GOOD through
to local government, councils, charities, and iwi to support community engagement projects As the site already runs a Essential / Non-Essential (Load Shedding) load reduction process the current generator
providing skilled and unskilled labour to construction, forestry, planting, cleaning, and other projects. Prisoners are supported to learn on the job health with maximum diesel capacity on site will run for over 7 days .
and safety Previous Current
Previous Current POOR AVERAGE GOOD
POOR AVERAGE GOOD
CRITICAL SYSTEMS AND ASSETS RATING (PROPERTY)
ASSET PERFORMANCE (PROPERTY) Summary
• Currently running as the second worst performing facility for all reactive based calls, at 7 calls per prisoners annually. The XXXX facility has been identified as a focus site given it
• Currently running at the seventh worst performing prison for Urgent/Priority calls that could impact the operation of the prison at 1.1 calls per prisoner annually. currently attracts some our highest rated risks and a high
• Theses results reflect the age of the assets and level of maintenance and PAR in recent years. average risk level also .
Key Challenges to be addressed:
1. Load on current main switch board
2. Age of local distribution boards
3. Water reticulation pipes require inspection
4. Reliance on mains gas supply
5. Limited water buffering capacity on site.
Previous Current
Previous Current
POOR AVERAGE GOOD POOR AVERAGE GOODProject – Implementation of Strategic Asset Management
14/11/ 2017 Phase: One Executive Sponsor: Neil Cherry Project Manager: Cliff Henderson
PROJECT
REASON & DRIVERS STRUCTURE & INTERFACES
The Department wants to implement Strategic Asset Management (SAM) with it’s portfolio to:
1. Reduce the risk of unscheduled failures
2. Provide robust financial forecasts and budgets.
3. Provide a safer environment for Staff, Prisoners, Service Providers, Visitors and the Public
4. Improve compliance processes and systems
5. Provide structured proactive support of the operational business in day to day operations and Disaster Recovery (DR) events.
6. Development of a current Asset Management Plan (AMP) that is a valued document and supports the business as a whole.
7. Maximise the benefits of an outsourced Asset Management model
IMPLEMENTATION METHODOLOGY
General Delivery
Through out New Zealand and Internationally the International Infrastructure Maintenance Manual (IIMM) in conjunction with the philosophies of
ISO 55000 has provided a structured and consistent approach for implementing, maintaining and measuring strategic Asset Management. Current
adopters of the approach include Defence, Police, Councils and Tertiary Sector. The proposed methodology is to follow this methodology that will
not only provide Structure but also allow benchmarking.
IIMM sets out 16 specific sectors (As detailed below) that are required to be delivered on. The level of delivery (Maturity) attracts an associated
score which is rolled up to provide a Total Rating Index.
These sectors will be jointly delivered by the Corrections Strategic Asset Management Team and the AM/FM Provider. While some will be the sole
responsibility of one party the majority will be jointly delivered with Corrections auditing and tracking progress as we strive to achieve the Index
Target. The Asset Management mobilisation and Transition Plan (Separate Document) sets out the sectors and relevant tasks with a reference to
the IIMM Sector where relevant
IIMM 2.1 AM Policy and Strategy IIMM 3.4 Capital Works Planning
IIMM 2.2 Levels of Service and Performance Management IIMM 3.5 Financial Planning
IIMM 2.3 Forecasting Demand IIMM 4.1 Asset Management Leadership and Teams
IIMM 2.4 Asset Register Data IIMM 4.2 Asset Management Plans
IIMM 2.5 Asset Performance and Condition IIMM 4.3 Management Systems
IIMM 3.1 Decision Making IIMM 4.4 Asset Management Information Systems
IIMM 3.2 Managing Risk IIMM 4.5 Service Delivery Mechanisms
IIMM 3.3 Operational Planning IIMM 4.6 Audit and Improvement FINANCIALS
Below is a summary of annual costs that have been developed from a bottom up approach. The current Asset Assurance Manager
Obligations & Responsibility (potentially Strategic Asset Manager going forward) is an existing cost in the business and has been reflected as such. This financial year
Corrections AM/FM Provider costs would be circa $ XXXK subject to on-boarding.
Strategic Direction Travel /
Maintenance Delivery The costs associated in relation Resource Total
Description Accommodation
Demand Forecasting Asset Management: to the engagement of Morrison Low are based on Strategic Asset Management Team $ xxxxx $ xxxxx $ xxxxx
Auditing / Compliance - Operation a Fee For Service proposal submitted in February Asset Assurance Manager -$ xxxxx
Representation - Performance 2017 or XXK including disbursements. Additional Annual Costs $ xxxxx $ xxxxx $ xxxxx
Financial Approvals - Compliance
Strategic Approvals / Approach Strategic Initiative Development TIMELINE (See Separate Programme)
Risk Assessments Initiative Implementation
Event Management (Internally) Risk Identification / Mitigation
Performance Reporting
Event Response
CHALLANGES & THREATS
Funding/Structure not approved – Status quo remains Transition in of new AM/FM Provider – Corrections fail to support transition and ongoing
AM initiatives Accommodation for SAM Team – currently accommodation is at a premium at NRO Availability of appropriately skilled AM
resources to fulfil roles – Need to aggressively source from the market Fail to deliver on operational expectations – Continue with proactive
engagement at an operational level and through out the business.You can also read
