Capital asset management

Transcription

1 Capital asset management Imprvement plan - exemplar 1

2 Executive Summary The Tertiary Educatin Cmmissin has facilitated the develpment f a Capital Asset Management (CAM) Standard fr Tertiary Educatin Institutes (TEIs). The TEC CAM Standard is a tl fr TEIs t identify imprvements twards implementatin f gd business practices. TEC has spnsred the external assessment f TEIs against the Standard and the results are summarised in this reprt. It prvides yur TEI with a suggested range f ptential imprvements t further enhance the CAM systems and prcesses it has in place. CAM Prcess CAM is a cyclical prcess targeting prgressive imprvement, and rbust decisin making at all levels within an rganisatin. Organisatins use assets t deliver utcmes and services. By understanding the cst and quality f existing assets, and identifying current and future asset shrtfalls, it is pssible t develp an imprved prgramme f capital requirements and t understand assciated funding requirements. A diagrammatical explainatin f the CAM prcess is belw. Figure 1: The CAM prcess Asset management planning framewrk Yur TEI s Achievements Yur TEI has recgnised the imprtance and value f rbust capital asset management as a cre business prcess. It has adpted a pragmatic apprach t meeting bth the central 2

3 gvernment CAM requirements and a brader prgramme f CAM imprvements. As a result it is beginning t realise the benefits f the prcess t imprve future capital planning and decisin making. Significantly, it has: Lng-term bjectives and utcmes linked t an verall strategy fr the regin based n the pririties cntained in the Tertiary Educatin Strategy Updated its Strategic Planning Framewrk cvering the perid 2009 t Develped an in-huse facilities management system which it uses t recrd and track building maintenance infrmatin and planned future capital wrks. An established prcess t cnsider nn-asset slutins as part f its capital requirements prcess. An infrmal prcess in place t assess and priritise ptential prjects based n its fur key strategies, i.e. meeting the needs f the cmmunities, enhancing the student experience, innvatin in teaching and learning, and being an excellent business. An established prcess t identify and dcument its capital funding requirements and ptins. Prduced an Asset Management Plan (AMP) in 2004 and plans t prduce an updated AMP based n the NAMS Prperty apprach. Demnstrated gd rganisatinal cmmitment t CAM develpment and imprvement. Summary Assessment Based n the infrmatin available during meetings and site visits, independent cnsultants cnducted an assessment f yur TEI s achievements against the TEC CAM Standard. Yur TEI was als invited t assess its wn perfrmance in each attribute area against an initial set f requirements and questins. Appendix A prvides the utputs frm the assessments using a generic scale represented by a five pint cntinuum ranging frm Unawareness t Excellence. The utput frm the independent assessment is summarised in the fllwing diagram which shws relative perfrmance in twelve CAM attribute areas, with the hashed areas signalling the planned target areas fr develpment ver the next Investment Plan cycle. 3

4 Table 1: Name f this table please? Attribute Area Cre Md Adv Strategic Objectives and Outcmes Managing Demand Levels f Service Descriptin f Assets Current and Future Shrtfalls Asset and Nn-asset Slutins Optimised Decisin Making Financial Frecasts Feedback and Imprvement Planning Assumptins / Cnfidence Levels Risk Management Organisatinal Cmmitment Based n the independent assessment, yur TEI is clsest t the planned targets in the areas f Strategic Objectives and Outcmes (meets), Managing Demand (meets), Descriptin f Assets, Current and Future Shrtfalls, Financial Frecasts, Feedback and Imprvement, Planning Assumptins / Cnfidence Levels, Risk Management and Organisatinal Cmmitment (meets). The areas and specific activities where it can make the mst significant gains and the crrespnding attributes area are: Prduce an Asset Management Plan based n the TEC AMP template which is available t dwnlad frm the TEC website [link please] (Feedback and Imprvement). Enhance Schl Academic Plans t define hw they will respnd t meet the strategic gals and bjectives (Strategic Objectives and Outcmes). Dcument the levels f service necessary t meet current and future service requirements (Levels f Service). Cnfigure the facilities management system t reflect the NAMS Prperty apprach including the ability t cllect, analyse, and reprt n asset cnditin, perfrmance, life, criticality, cst and valuatin infrmatin at a cmpnent level. (Descriptin f Assets). 4

5 Yur TEI shuld als cnsider the fllwing additinal key imprvements: Update the facilities management system with asset cnditin, remaining life, perfrmance, replacement cst, imprtance, criticality, utilisatin and risk (Descriptin f Assets). Develp a register f infrastructure assets and identify asset cnditin, remaining life, perfrmance, replacement cst, imprtance, criticality, utilisatin and risk (Descriptin f Assets). Develp a register f significant specialist educatin assets and identify asset cnditin, remaining life, perfrmance, replacement cst, imprtance, criticality, utilisatin and risk (Descriptin f Assets). Cmplete a survey (desktp r physical) t cllect the assciated asset infrmatin fr each asset type, wrking prgressively frm the high value and high criticality assets (Descriptin f Assets). Develp and implement a capital funding frecast based n the TEC guidelines and CAM Tlkit (Financial Frecasts). Review risk management prcesses t ensure they are cnsistent with cre requirements (Risk Management). The recmmended imprvement activities are likely t generate additinal benefits t yur TEI CAM systems as a whle including psitive shifts acrss multiple attributes, e.g. mre systematic financial frecasting will imprve cnfidence levels fr planning assumptins. 5

6 Intrductin Yur TEI is a metrplitan plytechnic servicing the regin, with a main campus in the Central Business District and satellite campuses acrss the regin. It has ttal assets valued at $258.4 millin including $153.2 millin assciated with buildings, plant and equipment, fixtures and fittings and infrmatin technlgy. It has identified $285.8 millin f capital expenditure during the perid Purpse The purpse f this reprt is t describe yur TEI s capital asset management systems against the established TEC CAM Standard in rder t identify a prgramme f imprvement activities. Scpe The scpe is t prvide an assessment f existing capital asset management infrmatin thrugh bth dcumentatin and interviews with key members f yur TEI management team. It relies n infrmatin prvided by yur TEI r as therwise freely available thrugh ther surces. This assessment includes prviding an imprvement plan and tls t assist in reaching the standard expected by TEC. 6

7 Capital Asset Management Capital Asset Management is the prcess that prvides the integrity and transparency f capital planning. It prvides the evidence and supprting material t demnstrate that prjects are delivering strategic bjectives, cnsider external influences and are justified. Capital prjects reslve service needs such as change in demand, lifecycle requirements, service delivery and shrtfall within the framewrk f strategic bjectives. It als ensures prject csts, peratinal, maintenance and renewal csts are allcated t funding surces t cnfirm and justify funding requirements. As the fllwing figure shws, CAM is a cyclical prcess targeting prgressive imprvement, and rbust decisin making at all levels within an rganisatin. Organisatins use assets t deliver utcmes and services. By understanding the cst and quality f existing assets and identifying current and future asset shrtfalls, it is pssible t develp a prgramme f capital requirements and t understand assciated funding requirements. Asset management planning framewrk Knw yur services Organisatins wn and cntrl physical assets t deliver utcmes and services. The nature, capacity and perfrmance f these assets reflect the needs f the rganisatin and the desired service levels t be prvided. Furthermre these requirements change ver time as the needs f users and ther stakehlders evlve and mature. Cnsidering this, rganisatins must have an agreed and dcumented understanding f the fllwing factrs: Strategic bjectives and utcmes what is it that they want t d. Service levels and quality hw well they want t d it. Netwrk integratin where they are psitined relative t ther netwrk prviders. 7

8 Cmmunity integratin what level f integratin they have with the cmmunity and ther gvernment rganisatins. Knw yur assets and csts Effective capital asset management requires an understanding f the assets held by the rganisatin t deliver services. The level f infrmatin will reflect the nature and value f the assets, but in brad terms the fllwing aspects are imprtant: What assets they have t deliver service utcmes and bjectives? The quality f their assets in terms f cnditin and perfrmance. What is the value f their assets? Prvisins made fr renewal. Utilisatin f the assets. Criticality and risk. Histrical asset csts and the verall cst f wnership. Knw what yu need As illustrated in the fllwing figure, asset requirements will change ver time reflecting the changing needs f the users. 8

9 It is therefre imprtant t understand and dcument the fllwing factrs: The expected changes in demand fr existing assets, i.e.: Changes in the target demgraphic. Changing needs f the target demgraphic. Changing needs f academic and supprt staff. Changing methds f service delivery. Changing needs f the wider cmmunity, i.e. lcal gvernment, hspitals, schls, infrastructure and cmmercial. The required changes in the levels f service t reflect strategic bjectives. The expected changes in the relatinships and links with adjacent netwrk prviders. The asset renewal requirements given current and future levels f service. The perfrmance gaps that will exist given the future asset cnditin and perfrmance requirements, including technical bslescence and reaching ttal capacity. Existing gaps in service delivery and capacity. Knw what is pssible Cnsidering the identified current and future asset gaps: Cnsider ptential nn-asset and nn-capital slutins, e.g.: Change the way assets are used. Change the way assets are perated and maintained. Change the service delivery methds (e.g. wn versus leased). Change the required service level. Scpe a range f pssible prjects t address the remaining shrtfalls and minimise the assciated risks. Knw what t d nw Cnsidering the range f ptential slutins: Select the mst effective slutins and priritise accrding t asset criticality and risk. 9

10 Identify and dcument the drivers fr each prject, i.e. like-fr-like replacement, additinal capacity, additinal functinality and allcate funding accrdingly. The crrect balance between capacity and demand given frecast grwth and change in demand. Determine when and hw initiatives and scped prjects will be implemented cnsidering the timing f expenditure and the availability f funding. Update asset data and review asset gaps prgressively as prjects are implemented and update financial mdels t reflect the assciated changes. Dcument the adpted prjects within the Asset Management Plan, i.e. all prjects shuld be listed, including their funding surces and cst allcatins. Knw what is sustainable Cnsidering the lng term nature f the assets: Identify what is affrdable ver their life given ptential funding surces. Identify the ptimum balance between peratin and capital expenditure, e.g. practive maintenance / capital renewal and energy cnsumptin / capital interventin. Identify the envirnmental, cmmunity, and cultural impacts f the assets, particularly hw they increase r mitigate risk. Knw yur funding ptins Cnsidering the identified and scped prjects and the assciated drivers: Identify the lng term funding requirements, i.e. beynd 20 years. Identify the available existing funding streams. Identify and understand hw funding ptins may change ver time, i.e. reflecting plicy changes, asset dispsals and ther initiatives, e.g.: Debt funding Public-private partnerships Energy perfrmance cntracts Grants, bequests etc. Identify the lng term funding requirements in terms f lifecycle analysis including renewal and dispsal fr existing and future assets. 10

11 Methdlgy This assessment and imprvement plan is the result f a review prcess based n the fllwing methdlgy and key reference surces: TEC CAM Standard fr Institutes f Technlgy and Plytechnics. Interviews with the fllwing peple in June 2010: Chief Executive. Chief Financial Officer. Directr Facilities Management. Directr Finance. Review f the fllwing key planning and reference dcuments: Yur TEIs Strategic Planning Framewrk Business Case fr Campuses. Draft Strategy fr Tertiary Educatin Prvisin. 11

12 Assessment against TEC CAM standards Yur TEI is implementing a prgramme t redevelp its campuses and as a result is well psitined t meet a number f the TEC CAM planning and reprting requirements. It is als undertaking a range f brader CAM imprvement activities and is beginning t realise the benefits f the prcess. This sectin describes hw the existing CAM prcesses perfrm against the TEC CAM Standard fr Institutes f Technlgy and Plytechnics. Strategic bjectives and utcmes Yur TEI s lng term bjectives and utcmes are linked t an verall strategy fr the regin defined in yur TEI s Strategy fr Tertiary Educatin Prvisin (currently in draft). This has been develped in cnjunctin with the ther TEIs and addresses the need fr high level vcatinal graduates in the regin ver the next 20 years. The result is likely t be cnslidatin f existing campuses, creatin f a new shared use campus and the creatin f smaller learning centres thrughut the regin in cnjunctin with the ther tw TEIs. Yur TEI has recently updated its Strategic Planning Framewrk cvering the perid 2010 t There are als a range f ther strategic planning dcuments that cllectively capture the verarching strategy and the crrespnding business case justificatin. These dcuments include: Business Case fr Campuses. Campus Structure Plan. Preliminary Business Case fr Facility. Public Infrastructure Partnership Fund. Ideally, yur TEI shuld prvide a cnslidated strategic plan, linked t the Strategy fr Tertiary Educatin Prvisin. The dcument shuld prvide: Clear definitin f visin and bjectives and identify the key planning assumptins and cnstraints. Clear definitin f the strategies and tactics necessary t achieve the visin and bjectives including links with demand, assets, and the assciated expenditure. A clear list f the key stakehlders and their requirements including cmmunity, ther gvernment rganisatins and adjacent netwrk prviders. Yur TEI shuld als enhance Academic Plans at an individual schl r faculty level by describing the link between the rganisatin wide strategic plan and the schl specific requirements and utputs. They shuld cnsider the assciated nature and demand fr each 12

13 prgramme, the likely asset requirements and the assciated investment drivers. The resulting dcuments shuld cllectively infrm the develpment f supprt asset plans as shwn in the adjacent figure, i.e. IT/IS Asset Plans, Facilities Asset Plans, and Crprate Services Asset Plans. Figure 2: name f figure please In all cases, the strategic, business and asset plans shuld ideally cnsider the lnger term requirements, i.e. greater than 20 years. While this may be challenging in sme cases, it better reflects the lives and lifecycle requirements f facilities type assets. Managing demand Yur TEI has access t a range f future planning infrmatin describing likely changes in grwth and demand, and the assciated drivers beynd ten years, e.g. demgraphics, technlgy and methds f teaching delivery. This is based n statistical prjectins and stakehlder engagement acrss a range f ptential planning scenaris, i.e. lw, medium, and high grwth. This infrmatin exists in a range f dcuments and shuld ideally be cnslidated and summarised, and used in the strategic and planning dcuments. There shuld als be a dcumented understanding f current and likely future supply capacity and slutins, and analysis f the feasible tactics and strategies available t address changes in demand (refer t examples in the TEC AMP template). 13

14 Levels f service Yur TEI has nt frmally defined the levels f service required t meet the strategic utcmes and bjectives althugh they are generally understd thrughut the rganisatin as fit fr purpse. The Schl Academic Plans shuld define the nature f current and likely future learning needs, particularly in terms f the mdern learning envirnment and the increased fcus n blended learning. It is imprtant t define the levels f service in terms f nature and quantum (size, capacity, quantity, prximity, safety, envirnment and cmfrt etc.) because these will drive the needs f current and future capital investment. Levels f service shuld als reflect external influences, e.g. TEC, New Zealand Transprt Agency, Fire Service, Health & Safety and Building Act (refer t examples in the TEC AMP Template). Descriptin f assets Current utilisatin is based n timetabling data fr the 2011 autumn semester. These data hwever, nly cvers 40% f all academic space and is fcused n the utilisatin f general teaching space. Data is currently nt available n department specific academic space, administrative, supprt and infrmal space. Facilities asset infrmatin Yur TEI has a wide range f facilities, including heritage buildings, relcatable buildings, several marginal quality buildings and a number f new r recently refurbished buildings. The verall cnditin f the facilities assets is gd cnsidering their age. In a number f cases the existing buildings are nt ideal fr the prvisin f educatin services r t meet the needs f stakehlders, particularly the lder heritage buildings, i.e. small and inflexible teaching areas and buildings distributed acrss the Campus. The lng term develpment plan fr the campus will result in cnslidatin at the suthern end f the campus. Yur TEI has develped an in-huse facilities management system it uses t recrd and track building maintenance infrmatin and planned future capital wrks. The underlying building infrmatin cmes frm a cnditin survey cnducted in 2004, but yur TEI is als updating it using infrmatin frm Revit Building Infrmatin Mdelling system and cmpleted maintenance prjects. Frm an asset management perspective, yur TEI shuld further develp its facilities management system based n the NAMS Prperty apprach. This shuld nt be a difficult exercise fr yur TEI given its wrk t date and the imprvements wuld be arund dcumenting cnditin and perfrmance at a majr cmpnent level, and assessing remaining life, criticality, replacement csts and verall value. This apprach wuld add 14

15 further cnfidence t lifecycle plans and financial frecasting used in its business cases and asset management plans. Infrastructure asset infrmatin Yur TEI has recgnised the need t increase its knwledge f infrastructure assets, particularly thse with high criticalities, e.g. bilers, heating, electrical. There is limited dcumented infrmatin abut the cnditin r perfrmance f the existing infrastructure assets. The prpsed cnslidatin n the suthern campus will address sme f the risk assciated with the lder infrastructure, i.e. at the nrthern end f the campus, but a survey f critical infrastructure assets is recmmended. As with the facilities assets, yur TEI shuld maintain a summary list f infrastructure assets and assciated infrmatin, including quantities, lcatins, age, cnditin, reliability, capacity, and remaining life. This infrmatin shuld supprt the risk management prcesses, particularly fr assets with high criticality. Specialist assets Specialist assets are thse assets used by the individual schls t supprt r deliver academic prgrammes, e.g. lathes, labratry equipment and kitchen equipment. This infrmatin is held n the fixed asset register and individual schls are respnsible fr rutine maintenance and fr identifying future replacement requirements. Yur TEI is planning t cnduct an audit and verificatin f high value and high criticality specialist assets, and will track them as apprpriate, e.g. barcdes. As with facilities and infrastructure assets, the list shuld be held centrally and prcesses shuld be established t maintain the infrmatin. The infrmatin shuld include identificatin, majr subassembly cmpnents, cst, life, and peratinal maintenance prgrammes. Asset infrmatin imprvement It is imprtant t capture and maintain asset data at an apprpriate level f detail t meet business infrmatin requirements. This will imprve the relevance f the infrmatin and imprve cnfidence in prjectins and requirements. Yur TEI shuld identify its business infrmatin needs, and develp a prgramme t prgressively gather additinal asset data t address any infrmatin gaps. This shuld be cnducted in a pragmatic and priritised manner reflecting the needs f the rganisatin and the criticality f the infrmatin. Yur TEI shuld ideally develp and implement a prgramme t maintain existing asset infrmatin thrugh acquisitin, peratin, maintenance and dispsal activities. This includes actual perating and maintenance csts f all assets t supprt future asset planning. Yur TEI shuld develp life cycle plans fr all assets, beginning with facilities assets and mving prgressively frm high t lwer value assets. These plans shuld reflect 15

16 whle-f-life csts including thse assciated with acquisitin, peratinal, maintenance and dispsal. Current and future shrtfalls Yur TEI s planning and business case dcuments identify a range f current and anticipated future asset shrtfalls, including: Ppulatin expected t grw within the regin ver the next 20 years and the crrespnding requirement fr increased tertiary educatin capacity. Shrtage f trade training capacity in the regin. High maintenance csts f existing buildings, particularly fr the lder and heritage buildings. Pr quality f existing buildings, particularly in relatin t the standard required t prvide a mdern learning envirnment. Increased reliance n technlgy in curse delivery, including thse areas where technlgy has nt been a majr driver, e.g. autmtive. Yur TEI has develped a series f business cases arund addressing the identified shrtfalls. These shuld ideally be cnslidated with links back t the strategic bjectives and utcmes. They shuld als cnsider the factrs affecting the demand and supply fr curses, asset cnditin and perfrmance, and the need fr current and future assets. There shuld als be apprpriate links t the risk register where the crprate risk prcess has identified asset related risks and capital investment as part f its respnse. Asset and nn-asset slutins Yur TEI cnsiders nn-asset slutins as part f its capital requirements prcess. There are several gd examples: It is sharing facilities and equipment with the District Health Bard, e.g. medical imaging and clinical simulatin equipment. It built a new library and carparking building in cnjunctin with City Cuncil. It has recently cmpleted cnstructin f a new trade training centre fr plumbing with industry supplying a range f specialist equipment and materials. It is negtiating with a cmmercial rganisatin t lcate a majr peratin n its campus and will use a new facility n the nrthern campus. Optimised decisin making 16

17 Yur TEI is still wrking t frmalise and dcument a priritisatin and ptimised decisin making framewrk. It nnetheless has an infrmal prcess in place based n the fur strategies, i.e. meeting the needs f the cmmunities, enhancing the student experience, innvatin in teaching and learning, and being an excellent business. The priritisatin and ptimised decisin-making prcess shuld ideally include: Frmal ptins analysis based n the NAMS Prperty apprach, cnsidering asset criticality and risk. Clear evidence f stakehlder cnsultatin within the decisin making prcess. Detailed recrd f the drivers fr each capital prject and the assciated whle-f-life funding requirements. Detailed recrd f the capital intentins decisin making prcess including the cnsideratins, decisins and prject priritisatin fr all prjects ver the life f the asset. Financial frecasts The planning and business case dcuments shw that yur TEI has an established prcess t identify and dcument its capital funding requirements and ptins, althugh it culd be mre clearly defined and dcumented. The capital funding requirement and ptins prcess shuld ideally prvide: Lng term descriptin f capital requirements, i.e. > 20 years. Clear understanding and dcumentatin f the links between capital prjects, the drivers and the allcatin f funding. Clear understanding and dcumentatin f the cnsequential peratinal expenditure, impact n valuatins and affrdability. Clear understanding and dcumentatin f alternative funding mechanisms and the cnsideratin f the assciated risks and risk mitigatin initiatives. Detailed financial frecasts prviding a cmplete descriptin f funding requirements, funding mechanisms, and the assciated drivers. Sensitivity f financial assumptins has been analysed and cnfidence is dcumented. Feedback and imprvement Yur TEI prduced an Asset Management Plan (AMP) in 2004 and plans t prduce an updated AMP based n the NAMS Prperty apprach. The AMP shuld be develped t 17

18 reflect the apprach described in Sectin 6.1, i.e. linked t the strategic plan thrugh academic plans. There shuld als be a fcus n the quality f the existing asset infrmatin, risk management and mitigatin, and a prgramme t address any infrmatin gaps. The AMP shuld include a clear prgramme f imprvement activities, listed accrding t an agreed pririty and schedule. Resurces shuld be allcated t each activity, and verall prgress shuld be mnitred and reviewed by bth yur TEI Executive and yur TEI Cuncil. Specific tasks shuld ideally be allcated t individuals r rles and successful cmpletin shuld be incrprated int individual perfrmance indicatrs. This apprach wuld increase the likelihd that imprvements are implemented in a rigrus and purpseful manner and achieve their bjectives. Planning assumptins and cnfidence levels Yur TEI s planning and business case dcuments identify and cnsider the planning assumptins based n a sund apprach verall. It shuld hwever present this infrmatin in a cnslidated frm in its strategic plans and academic plans, and link them t asset requirements. It shuld als implement a prgramme t systematically imprve the quality f its infrmatin and knwledge abut its facilities, infrastructure and specialist assets based n a pragmatic, and pririties apprach, i.e. the high value and mst critical assets first. Yur TEI shuld als cntinue with its plans t cllect and cllate asset infrmatin in a cnslidated way. The fcus shuld be n the lnger term planning requirements rather than identifying deferred maintenance, and the level f detail shuld be sufficiently accurate and detailed t understand the lifecycle csts and risks assciated with the majr assets. Thrugh analysis f the asset infrmatin it wuld then have the ability t develp detailed maintenance and renewal plans, identify asset upgrades, and understand the ptential cnsequences f deferred investment decisins, e.g. extent f deferred maintenance. Risk management Yur TEI has an established risk management framewrk based n industry practices. There is a central risk register that senir management team maintain infrmally with input frm thrughut the rganisatin. The Cuncil Risk and Assurance cmmittee receives a quarterly reprt. Frm a capital asset management perspective the apprach t risk management culd be further imprved by ensuring: Crprate risk management prcesses are an integral part f cre business prcesses and planning. There is an active prgramme t identify and manage risk acrss the rganisatin, with links t capital asset planning and decisin making. 18

19 Critical assets are identified, and the assciated risks and risk management activities identified and dcumented, including disaster recvery and business cntinuity plans, maintenance strategies, and replacement strategies. There are quarterly reviews f risk and risk management activities at all levels within the rganisatin and particularly by the Executive and the Cuncil. Organisatinal cmmitment There is clear evidence f rganisatinal cmmitment t capital asset management within yur TEI: The Cuncil has traditinally been active in defining the strategic directin and making key capital asset decisins. The strategic planning dcuments clearly define the future directin, gals and assciated requirements. There has been cnsultatin with stakehlders and ther netwrk prviders. The Chief Financial Officer is the identified asset management champin fr the rganisatin. There are dedicated asset management psitins, and the leadership team have key asset management respnsibilities linked t perfrmance reviews. There is an infrmal Asset Management Steering Grup (AMSG) cnsisting f the Chief Financial Officer, Directr Facilities Management, and Directr Strategic Campus Develpment. The intentin is als t include senir academic staff. 19

20 Summary assessment Based n the infrmatin available during meetings and site visits, independent cnsultants cnducted an independent assessment f yur TEI s achievements against the TEC CAM Standard. The results are summarised in the fllwing table with the hashed areas signalling the planned target areas fr develpment ver the next Investment Plan cycle. Table 2: Name f this table please? Attribute Area Cre Md Adv Strategic Objectives and Outcmes Managing Demand Levels f Service Descriptin f Assets Current and Future Shrtfalls Asset and Nn-asset Slutins Optimised Decisin Making Financial Frecasts Feedback and Imprvement Planning Assumptins / Cnfidence Levels Risk Management Organisatinal Cmmitment The link between the Generic CAM Standard used by all gvernment agencies and the five pint scale used in the Gap analysis is shwn in the fllwing table. Table 3: name f table please Generic CAM Standard Cre Mderate Advanced TEC CAM Standard Unawareness Awareness Systematic Apprach (Knwledge) Cmpetent Excellence 20

21 Yur TEI was invited t assess its wn perfrmance in each attribute area against an initial set f requirements and questins. Its self assessment was cnsistent with the independent assessment in the areas f Asset and Nn-asset Slutins, Optimised Decisin Making, and Feedback and Imprvement. It assessed itself lwer than the independent assessment in the remaining areas. Appendix A prvides the utputs frm bth the independent assessment and yur TEI self assessment. 21

22 Imprvement plan The Imprvement Plan reflects the need t mve TEIs twards the Mderate CAM perfrmance level ver the next Investment Plan cycle. Sme pints have nt been included in the imprvement plan at this stage as they require preliminary wrk elsewhere in the imprvement plan befre they are f value. Mre detail and justificatin fr the imprvements nted is explained in the relevant sectin in this Imprvement Plan and in the TEC CAM Standard. Pririties are nminally given as A (high), B, C, and D (lw) n the basis f ur experience. The assignment f pririty takes int accunt nt nly the imprtance f the task in terms f the TEC CAM Standard and TEC expectatins but als the value f achieving the imprvement fr yur TEI. Attribute Area Identified imprvement Interim pririty Suggested Reference Strategic Objectives and Outcmes Prduce a cnslidated strategic plan, linked t the Strategy fr Tertiary Educatin Prvisin. The dcument shuld prvide: Definitin f visin and bjectives and identify key planning assumptins and cnstraints. C IIMM, s NAMs Prperty, s2 Definitin f the strategies and tactics necessary t achieve the visin and bjectives, including links with demand, assets, and the assciated expenditure. A clear list f the key stakehlders and their requirements, including cmmunity, ther gvernment rganisatins, and adjacent netwrk prviders. Enhance Academic Plans t define and dcument hw individual schls will respnd t meet the strategic gals and bjectives, particularly in terms f anticipating further curse and qualificatin requirements, mdes f service delivery, and the level f service required t meet the needs f the mdern learning envirnment. A IIMM, s NAMs Prperty, s2 Managing Demand 22 Cnslidate and summarise the existing demand frecast infrmatin in key strategic planning dcuments, and describe the supply C IIMM, s NAMs

23 Attribute Area Identified imprvement Interim pririty Suggested Reference capacity and slutins, and analyse feasible tactics and strategies. Prperty, s4 Levels f Service Dcument the levels f service necessary t meet current and future service requirements, specifically in terms f respnse, frequency, appearance, use requirements, availability, safety, cleanliness and quality. Als cnsider the needs f external agencies, e.g. TEC, New Zealand Transprt Agency, Fire Service, Health & Safety and Building Act. Establish service level measures linked t the demand and supply frecasts, particularly in terms f utilisatin, cnditin, capacity and financial perfrmance. Establish a reprting schedule cllected regularly at faculty and building level and cllated up t rganisatin wide measures. A IIMM, s NAMs Prperty, s4 TEC CAM Tlkit C IIMM, s NAMs Prperty, s4 TEC CAM Tlkit Descriptin f Assets Cnfigure the facilities management system t reflect the NAMS Prperty apprach including the ability t cllect, analyse, and reprt n asset cnditin, perfrmance, life, criticality, cst and valuatin infrmatin at a cmpnent level. A IIMM, s NAMs Prperty, s3 Update the facilities management system with asset cnditin, remaining life, perfrmance, replacement cst, imprtance, criticality, utilisatin and risk. Use this infrmatin t prvide a lng term view f likely capital investment requirements, reflecting asset renewal and upgrade. B IIMM, s NAMs Prperty, s3 Develp a register f Infrastructure assets and identify asset cnditin, remaining life, perfrmance, replacement cst, imprtance, criticality, utilisatin, and risk. Use this infrmatin t prvide a lng term view f likely capital investment requirements, reflecting asset renewal and upgrade. B IIMM, s NAMs Prperty, s3 Develp a register f significant specialist educatin assets and identify asset cnditin, remaining life, perfrmance, replacement cst, imprtance, criticality, utilisatin, and risk. Use this infrmatin t prvide a lng term view f likely capital investment requirements, B IIMM, s NAMs Prperty, s3 23

24 Attribute Area Identified imprvement Interim pririty Suggested Reference reflecting asset renewal and upgrade. Implement a survey (desktp r physical) t cllect any additinal asset infrmatin fr each asset type, wrking prgressively frm the high value and high criticality assets. B IIMM, s NAMs Prperty, s3 Develp and implement a prgramme t maintain existing asset infrmatin including actual perating and maintenance csts f all assets t supprt future asset planning. C IIMM, s4 Current and Future Shrtfalls Optimised Decisin Making Financial Frecasts Ensure the existing and future business cases dcument the link between the identified shrtfalls and the strategic bjectives and the needs. Cnsider the factrs affecting the demand and supply fr curses, asset cnditin and perfrmance, and the need fr current and future assets. Ensure there are apprpriate links t the risk register and the assessment f nn-asset slutins is recrded. Cntinue the wrk t frmalise and dcument the priritisatin and ptimised decisin making framewrk, ensuring it includes: Frmal ptins analysis based n the NAMS Prperty apprach, cnsidering asset criticality and risk. Clear evidence f stakehlder cnsultatin within the decisin making prcess. Detailed recrd f the drivers fr each capital prject and the assciated whle-f-life funding requirements. Detailed recrd f the capital intentins decisin making prcess, including the cnsideratins, decisins, and prject priritisatin fr all prjects ver the life f the asset. Review existing business cases and capital plans, and ensure all future business cases and capital plans prvide the fllwing infrmatin: >20 year descriptin f capital C 2006 NAMs Prperty, s5 C IIMM, s NAMs Prperty, s6 B 2006 NAMs Prperty, s6 TEC CAM 24

25 Attribute Area Identified imprvement Interim pririty Suggested Reference requirements. Tlkit Links between capital prjects, the drivers, and the allcatin f funding. Cnsequential peratinal expenditure, impact n valuatins, and affrdability. Alternative funding mechanisms and the assciated risks and risk mitigatin initiatives (including PPP/EPC/debt/asset sales). Detailed financial frecasts prviding a cmplete descriptin f funding requirements, funding mechanisms, and the assciated drivers. Sensitivity analysis f financial assumptins. Feedback and Imprvement Prduce an updated Asset Management Plan based n the apprach described in Sectin 6.1. There shuld als be a fcus n the quality f the existing asset infrmatin, risk management and mitigatin, and a prgramme t address any infrmatin gaps. A 2006 NAMs Prperty, s7 TEC CAM Tlkit Establish an asset management system feedback and imprvement prcess that ensures: Asset and attribute infrmatin is maintained. C IIMM, s NAMs Prperty, s3 Levels f cnfidence in reprting and imprvement. TEC CAM Tlkit Imprvement tasks are scped, plans are updated, mnitred and benchmarking ccurs t cntinually imprve. Planning Assumptins and Cnfidence Levels Implement a prgramme t systematically imprve its infrmatin and knwledge abut its facilities, infrastructure and specialist assets based n a pragmatic and pririties apprach, i.e. the high value and mst critical assets first. C As described in previus sectins Risk Management Review risk management prcesses t ensure: Crprate risk management prcesses are an integral part f cre business B IIMM, s NAMs 25

26 Attribute Area Identified imprvement Interim pririty Suggested Reference prcesses and planning. There is an active prgramme t identify and manage risk acrss the rganisatin, with apprpriate links t capital asset planning and decisin making. Prperty, s4.3 Critical assets are identified, and the assciated risks and risk management activities identified and dcumented, including disaster recvery and business cntinuity plans, maintenance strategies, and replacement strategies. There are regular reviews f risk and risk management activities at all levels within the rganisatin, and particularly at the Executive and Cuncil level. 26

27 Title f this page? Reprt Prepared by Reprt Reviewed b Revisin Revisin Date Details Authrised Signature Name and Psitin 27

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30 APPENDIX A GAP ASSESSMENTS Independent Assessment Self Assessment 30

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32 32 Published by the TEC in Nvember 2010