Project Appreciation and Objectives
At the last price review some AMP Reporters identified Management and General (M&G) as a high expenditure area, others suggested the reverse. What was acknowledged was that much of the spend was justified on health & safety grounds and/or an economic replacement basis, but that generally justification for expenditure and decision-making could be improved.
There is the considerable scope to extend the principles of the Capital Maintenance Planning Common Framework (CMPCF) to some classes of M&G assets. Relevant items include:
- General mapping and updating of network records
- Site security and works to comply with health and safety<.li>
- New/renewal of telemetry/communications systems, leakage control/monitoring equipment, analytical/sampling plant
- Land, buildings, laboratories, depots and workshops
This project aimed to provide participants with the necessary tools to embed risk-based methodologies into day-to-day decision-making and lead to improved efficiency and reduced M&G costs.
Benefits to Clients
This project aimed to deliver improved efficiency and M&G savings through:
- Improved understanding of current approaches to prioritising M&G spending.
- Development of enhanced risk based methodologies for M&G spending.
- Supporting information for M&G prioritisation and decision-making.
- Supporting information for identifying exceptional expenditure.
- Improved understanding of company risk.
- Review existing industry practice with input from each of the project collaborators.
- Investigate which M&G expenditure items would benefit from the CMPCF approach.
- Benchmark approaches used outside of the water industry for similar expenditure items.
- Develop water industry specific approaches.
- Produce generic spreadsheet based tools to support decision making, where appropriate.
- Report and disseminate findings.
- Guidance document and spreadsheet tools to support the application of risk-based approaches for relevant M&G items.
- Implementation workshop to discus and disseminate results.
Related WRc Work.
- Understanding risk, cost and investment decisions across different asset, groups, CP272, 2006-2007.
- Deterioration modelling, CP063, 2002-2003.
- Pragmatic approaches to risk, CP063, 2002-2003.