Launch Of Australian First In Asset Management
In a national first, the NSW Government has launched a comprehensive set of end- to-end business processes for Enterprise Asset Management (EAM) aligned with the International Asset Management Standards (ISO 55000) series.
EAM is the management of an organisation’s assets across departments, facilities, business units and geographical locations to produce the services required by customers.
Office of Finance and Services Chief Executive Simon Smith said the new EAM processes were designed and developed by the Office of Finance and Services with support from the NSW Treasury and in collaboration with industry through and endorsed by the Asset Management Council.
“With more than $260 billion in physical assets including buildings, public transport, health and education, utilities, cultural and recreational services and emergency services and police, NSW’s asset portfolio is one of the largest in the nation,” he said.
“A strong asset management governance framework is critical to ensure optimum financial outcomes.”
Mr Smith said the state’s annual maintenance expenditure exceeding $4.4 billion was increasing with a growing and ageing asset base.
“With an estimated increase of more than two million people, mostly in the Sydney region, the total state population is likely to exceed nine million by 2032,” he said.
“Government is keenly aware of the need to monitor the effectiveness of existing asset management systems and processes to identify greater efficiencies where possible and ensure any future investment is targeted to benefit the people of NSW.
“Government is now taking a smarter, whole-of-life approach to managing assets, that is, managing the whole life cycle of an asset, not just its acquisition and maintenance stages, but with a holistic focus that also includes the planning and renewal stages.
“This is a landmark improvement to support NSW growth and prosperity.
“These new standard business processes will provide government agencies with the means to reduce waste and improve return on investment.
“EAM processes identify the business requirements of an agency and then apply the most cost effective and efficient measure to manage new and existing assets over their lifetime to meet service requirements.
“Traditional planning can impact on the whole-of-life cost for an asset. A small error in planning, for example one to two percent, can have a ten to 20 percent effect on the whole-of-life cost.
“By integrating financial and operational activities and streamlining reporting on asset management, governance and compliance improvements will be achieved.
“By adopting these standard processes, agencies will be better placed to manage their assets in line with pre-determined cost, risk and performance criteria while meeting industry best practice standards and satisfying all of their policy obligations.
“EAM processes will also inform the design and build requirements for any new computerised maintenance management system an agency chooses to install and so improve asset management capabilities and integration with finance, human resources and procurement.”
Mr Smith said EAM processes would also help agencies maximise the benefits of new and emerging technologies.
“There is great interest nationally and internationally across business and industry in the NSW Government’s EAM processes as they provide a fundamental framework for ensuring more effective capital investment,” he said.
The Office of Finance and Services is providing training and ongoing support in EAM processes for all NSW government agencies and industry approved suppliers on the NSW Procurement ICT Services Scheme.
For more information about the NSW Government EAM Standard Business Processes please contact NSWGovStandards@finance.nsw.gov.au or call 02 9372 7990.