BOOK
Strategic Asset Management of Water Supply and Wastewater Infrastructures
Helena Alegre | Maria do Ceu Almeida
(2009)
Additional Information
Book Details
Abstract
Water and Wastewater companies operating all around the world have faced rising asset management and replacement costs, often to levels that are financially unsustainable.
Management of investment needs, while meeting regulatory and other goals, has required:
- A better understanding of what customers demand from the services they pay for, and the extent to which they are willing to pay for improvements or be compensated for a reduction in performance
- Development of models to predict asset failure and to identify and concentrate investment on critical assets Improved management systems
- Improved accounting for costs and benefits and their incorporation within an appropriate cost-benefit framework
- Incorporation of risk management techniques
- Utilisation of advanced maintenance techniques including new rehabilitation failure detection technologies
- Enhancements in pipeline materials, technologies and laying techniques.
Table of Contents
Section Title | Page | Action | Price |
---|---|---|---|
Half title page | 1 | ||
Title page | 3 | ||
Copyright page | 4 | ||
Contents | 5 | ||
Foreword | 9 | ||
Conference Organisation | 11 | ||
CHAPTER 1: INTRODUCTION | 13 | ||
Introduction: International collaboration a linchpin in sustainable practices | 15 | ||
OBSERVATIONS | 16 | ||
FUTURE CHALLENGES AND OPPORTUNITIES | 17 | ||
A COLLABORATION THAT ENGAGES BOTH SERVICE PROVIDERS AND ENVIRONMENTAL REGULATORS | 20 | ||
FOUR OBJECTIVES FOR A FIVE YEAR PERIOD | 21 | ||
CHAPTER 2: GLOBAL APPROACHES TO ASSET MANAGEMENT | 23 | ||
Report: Global developments of strategic asset management | 25 | ||
INTRODUCTION | 25 | ||
THE WORLD OF ASSET MANAGEMENT | 27 | ||
ASSET MANAGEMENT AROUND THE WATER WORLD | 30 | ||
CHALLENGES AND FUTURE NEEDS | 32 | ||
Global cooperation on Strategic Asset Management | 33 | ||
CONCLUDING REMARKS | 35 | ||
REFERENCES | 39 | ||
Developing a sustainability management plan for water supply within Sarawak, Malaysia | 43 | ||
INTRODUCTION | 44 | ||
WHAT IS TOTAL MANAGEMENT PLANNING? | 46 | ||
TOTAL MANAGEMENT PLANNING – THE CONCEPT | 47 | ||
WHAT DOES A TMP LOOK LIKE? | 48 | ||
KEY RESULT AREAS | 49 | ||
TOTAL MANAGEMENT PLANNING GUIDELINES ARE AVAILABLE | 51 | ||
BENEFITS | 52 | ||
CONCLUSIONS | 53 | ||
TVW infrastructure investment planning process – use of forecasting and uncertainty modelling tools | 55 | ||
INTRODUCTION | 55 | ||
METHOD | 57 | ||
Three Valleys approach at PR04 | 57 | ||
Burst model | 58 | ||
Risk analysis | 58 | ||
Whole-life investment model | 59 | ||
Uncertainty modelling | 59 | ||
Areas of uncertainty | 61 | ||
Uncertainty modelling associated with the Burst Model | 61 | ||
Uncertainty modelling and option optimisation associated with the investment model | 62 | ||
RESULTS | 64 | ||
Company wide analysis | 64 | ||
Case study Harrow: | 67 | ||
CONCLUSION | 70 | ||
REFERENCES | 70 | ||
A novel methodology to prioritize investment proposals | 71 | ||
INTRODUCTION | 71 | ||
MODEL DEVELOPMENT | 73 | ||
General requirements and principles of the conceptual model | 73 | ||
Assessment criteria considered in the investment analysis | 74 | ||
Cost assessment formulation | 74 | ||
Modified Net Present Value (MNPV) method | 74 | ||
Annual costs’ formulation | 75 | ||
Underlying assumptions of the operational model | 76 | ||
Description of the operational model | 77 | ||
CASE STUDIES AND RESULTS’ DISCUSSION | 78 | ||
Main points of view | 78 | ||
Case study description | 79 | ||
Treatment facility | 79 | ||
Pumping station | 80 | ||
Mains and service connections | 80 | ||
Case study comparison | 80 | ||
Summary of results | 80 | ||
Criteria for the selection of the analysis period | 81 | ||
Result sensitivity to subjective input data | 82 | ||
Relationship between direct and indirect costs | 82 | ||
Data availability constraints | 83 | ||
Comparison of relative and absolute benefits | 84 | ||
INVESTMENT PRIORITIZATION ALTERNATIVES | 84 | ||
Case studies | 84 | ||
Prioritization by absolute benefit | 86 | ||
Prioritization by relative benefit with class stratification | 86 | ||
Prioritization by relative benefit without class stratification | 89 | ||
CONCLUSIONS | 89 | ||
FINAL REMARKS | 89 | ||
Summary and conclusions | 89 | ||
Discussion and recommendations for further developments | 91 | ||
ACKNOWLEDGMENTS | 92 | ||
REFERENCES | 92 | ||
CHAPTER 3: INSTITUTIONAL, ORGANISATIONAL AND RESEARCH ASPECTS | 95 | ||
Report 1: A global vision for driving infrastructure asset management improvement | 97 | ||
PREAMBLE | 97 | ||
AT THE STRATEGIC LEVEL | 98 | ||
ASSET MANAGEMENT, A STEPPING STONE TO ESTABLISHING SUSTAINABLE SYSTEMS | 100 | ||
IS THE PRACTICE OF ASSET MANAGEMENT BETTER ADVANCED THROUGH A REGULATORY STRUCTURE | 102 | ||
WILL SHORT TERM DECISION REQUIREMENTS ALWAYS TRUMP LONG TERM OPTIMAL CHOICES? | 103 | ||
DO SUSTAINABLY FOCUSED ORGANIZATIONS HAVE COMMON CHARACTERISTICS? | 104 | ||
THREE IDEAS TO BUILD THE KNOWLEDGE BASE:THE EVOLUTION OF EXCELLENCE CENTERS; AN INTERNATIONAL STANDARD AND STEPPED-UP GLOBAL COLLABORATION AND EXCHANGE | 105 | ||
Assigning a focal point for leadership in advancing sustainable water infrastructure (excellent centers or similar strategies) | 106 | ||
An international standard for sustainable infrastructure | 106 | ||
Stepped-up global collaboration on knowledge exchange and training | 107 | ||
BIBLIOGRAPHY | 107 | ||
Report 2: Institutional, organisational and research aspects: Asset management system, the corner stone of managing an asset rich industry | 109 | ||
INTRODUCTION | 109 | ||
STATE OF THE ART ASSET MANAGEMENT | 110 | ||
ASSET MANAGEMENT SYSTEM | 111 | ||
MELBOURNE WATER’S ASSET MANAGEMENT SYSTEM | 112 | ||
Melbourne Water’s 7 elements of asset management | 114 | ||
Asset Management Policy | 114 | ||
Asset Management Strategic Framework | 114 | ||
Asset Management Guidelines | 114 | ||
Strategic Asset Management Plans | 114 | ||
Asset Management Processes and Procedures | 114 | ||
Asset Management Instructions and Forms | 114 | ||
BENCHMARKING VS AUDITING | 115 | ||
Melbourne Water 2004 benchmark results | 115 | ||
ASSET MANAGEMENT SYSTEMS SUPPORTING REGULATORY REQUIREMENTS | 116 | ||
SHORTCOMINGS, CHALLENGES AND FUTURE TRENDS | 116 | ||
FINAL REMARK | 118 | ||
REFERENCES | 118 | ||
Asset management and regulation: The Portuguese case | 121 | ||
THE PORTUGUESE WATER SECTOR | 122 | ||
THE PORTUGUESE INSTITUTE FOR THE REGULATION OF WATER AND WASTE SERVICES – IRAR | 123 | ||
Structural regulation of the sector | 123 | ||
Regulation of the operators’ behaviour | 124 | ||
ASSET MANAGEMENT IN THE WATER SECTOR | 125 | ||
REGULATION AND ASSET MANAGEMENT | 127 | ||
CONCLUSION | 132 | ||
REFERENCES | 133 | ||
ISO24500 standards as a support tool to manage assets | 135 | ||
INTRODUCTION | 135 | ||
THE ISO24500 SERIES OF STANDARDS | 136 | ||
CONTENTS OF THE STANDARDS | 137 | ||
THE STANDARDS AS A SUPPORT TOOL FOR ASSET MANAGEMENT | 139 | ||
SETTING THE GOALS: THE SERVICE LEVELS | 141 | ||
MEASURING THE RESULTS: PERFORMANCE INDICATORS SYSTEMS | 142 | ||
Objective (user expectation) | 143 | ||
Guidance | 143 | ||
Assessment criteria | 144 | ||
CONCLUSIONS | 144 | ||
REFERENCES | 144 | ||
Ownership and management of water utility assets in developing countries: The case of Kenya | 147 | ||
INTRODUCTION | 147 | ||
WATER SECTOR INSTITUTIONAL FRAMEWORK IN KENYA | 149 | ||
Water sector reform | 149 | ||
INSTITUTIONAL GUIDANCE RELATED TO ASSET OWNERSHIP, MANAGEMENT AND INVESTMENT PLANNING | 153 | ||
Legislation and strategies | 153 | ||
The Water Act of 2002 | 153 | ||
The Water (Plan of Transfer of Water Services) Rules, 2005 | 154 | ||
Sector Wide Approach to Planning | 155 | ||
National Water Services Strategy 2007–2015 | 155 | ||
Draft Model Service Provision Agreements | 156 | ||
DISCUSSION AND CONCLUSIONS | 156 | ||
NOTE | 158 | ||
REFERENCES | 158 | ||
CHAPTER 4: TARGET DEFINITION AND ASSESSMENT OF PERFORMANCE | 161 | ||
Report: Target definition and assessment of performance in water services | 163 | ||
INTRODUCTION | 163 | ||
THE NEED FOR STRATEGIC ASSET MANAGEMENT | 164 | ||
THE NEED FOR A PERFORMANCE ASSESSMENT SYSTEM | 165 | ||
The system | 165 | ||
The performance indicators | 167 | ||
The variables | 167 | ||
The context information and other data elements | 167 | ||
THE DEFINITION OF A SET OF PERFORMANCE INDICATORS | 168 | ||
The protection of the consumer’s interests | 169 | ||
The sustainability of the utility | 170 | ||
The environmental sustainability | 170 | ||
THE DEFINITION OF TARGET VALUES | 171 | ||
THE IMPLEMENTATION OF THE PERFORMANCE ASSESSMENT MEASURES | 171 | ||
THE RELEVANCE OF THIS APPROACH FOR THE OTHER STAKEHOLDERS | 173 | ||
THE NEED FOR SUPPORTING TOOLS | 174 | ||
CURRENT STATE-OF-THE-ART, SHORTCOMINGS, CHALLENGES AND FUTURE TRENDS | 175 | ||
FINAL REMARKS | 178 | ||
REFERENCES | 178 | ||
Proposal for a methodology to assess the technical performance of urban sewer systems | 181 | ||
INTRODUCTION | 182 | ||
METHODOLOGY | 183 | ||
General description | 183 | ||
Assessing infiltration and inflow impacts on the performance of sewer systems | 184 | ||
Infiltration and inflow in sewer systems | 184 | ||
Definition of performance indicators to assess I/I impacts | 185 | ||
Definition of performance functions to assess I/I impacts | 186 | ||
RESULTS AND DISCUSSION | 188 | ||
Case study description | 188 | ||
Results | 191 | ||
Performance assessment for hydraulic capacity – pipe scale application | 191 | ||
Performance assessment for infiltration – catchment scale application | 191 | ||
Performance assessment for inflow – catchment scale application | 192 | ||
Discussion | 193 | ||
CONCLUSIONS | 194 | ||
REFERENCES | 195 | ||
Extended period simulation in the estimation of the economic level of reliability for the rehabilitation of water distribution systems | 197 | ||
INTRODUCTION | 198 | ||
OPTIMISATION METHODOLOGY | 200 | ||
Lost revenue estimation | 203 | ||
APPLICATION TO THE PSG CASE STUDY | 205 | ||
CONCLUSIONS | 213 | ||
REFERENCES | 213 | ||
CHAPTER 5: COST AND BENEFIT VALUATION | 217 | ||
Report: Cost and benefit valuation for asset management | 219 | ||
INTRODUCTION | 219 | ||
SOME INSIGHTS INTO THE STATE OF THE ART ABOUT VALUATION OF COSTS AND BENEFITS | 221 | ||
Decision-making in asset management | 221 | ||
What are ‘‘costs’’ or ‘‘benefits’’? | 222 | ||
Quick and partial overview of valuation approaches | 224 | ||
Some more detailed insight into external costs and benefits | 225 | ||
SOME SHORTCOMINGS, CHALLENGES AND FUTURE TRENDS | 227 | ||
Identifying the appropriate spatial boundaries of the infrastructure to be considered and accounting for spatial structure of systems performance | 228 | ||
Considering an appropriate time horizon and dealing with the long term | 228 | ||
Addressing hazards and risks | 229 | ||
Setting the boundaries of the ‘‘externalities’’ considered within asset performance | 229 | ||
Further developing suited valuations for external costs and benefits | 230 | ||
Dealing with uncertainties for decision-making | 231 | ||
FINAL REMARKS: SHOULD WE GO ON DEVELOPING AND USING COSTS AND BENEFITS VALUATION, AND HOW CAN WE DEAL WITH DATA AVAILABILITY? | 231 | ||
REFERENCES | 232 | ||
Asset management in Copenhagen Energy Sewerage Department | 235 | ||
INTRODUCTION | 235 | ||
ASSET MANAGEMENT IN CESD | 236 | ||
STRATEGIC LIFE-CYCLE COST MODEL IN CESD | 238 | ||
RESULTS AND CONCLUSIONS | 242 | ||
REFERENCES | 242 | ||
Effect of water costs on the optimal renovation period of pipes | 243 | ||
INTRODUCTION | 243 | ||
REVISION OF THE STRUCTURE AND COST CALCULATION | 244 | ||
Renovation costs (C⊂1) | 244 | ||
Maintenance and repair costs (C⊂2) | 244 | ||
Variable costs related to lost water (C⊂3) | 245 | ||
Social costs (C⊂4) | 246 | ||
Total costs (C⊂T) | 246 | ||
EL MAXIMUM ACCEPTABLE LEAKAGE VOLUME (MALV) | 247 | ||
EXAMPLE AND ANALYSIS | 247 | ||
Influence of water production costs in the optimum renovation period | 248 | ||
Influence of pipe average pressure in the determination of the optimum renovation period | 249 | ||
Influence of the cost of water on the MALV | 251 | ||
Influence of a higher failure rate | 255 | ||
Influence of the repair costs | 256 | ||
CONCLUSIONS | 258 | ||
REFERENCES | 259 | ||
Implementing an asset management approach to capital investment planning | 261 | ||
INTRODUCTION AND OVERVIEW | 263 | ||
THE FUNDAMENTALS OF ASSET MANAGEMENT AND CAPITAL PLANNING | 264 | ||
BUSINESS CASES AND PROJECT PRIORITIZATION | 265 | ||
BUILDING A SOLID FINANCIAL FOUNDATION | 266 | ||
EDUCATING AND ENGAGING STAKEHOLDERS | 268 | ||
THE GOAL: SUSTAINABLE LONG TERM PLANNING | 269 | ||
CHAPTER 6: TARGET DEFINITION AND ASSESSMENT OF RISKS | 271 | ||
Report: Risk management: Current state, gaps, and looking ahead | 273 | ||
INTRODUCTION | 273 | ||
Definition of risk management | 273 | ||
STATE OF LEARNING AND PRACTICE FOR RISK MANAGEMENT | 274 | ||
International infrastructure management manual | 274 | ||
Australian and UK efforts | 275 | ||
U.S. research efforts | 276 | ||
U.S. Guidebook: implementing asset management: a practical guide | 277 | ||
Utility case studies | 277 | ||
GWRC’S STUDY OF RISK | 278 | ||
Scope | 278 | ||
Survey findings | 278 | ||
Conclusions | 279 | ||
Availability of detailed tools and methods (Barnes et al., 2007) | 279 | ||
Categorization of risks (Barnes et al., 2007) | 280 | ||
Risk management method (Barnes et al., 2007) | 280 | ||
Organizational issues (Barnes et al., 2007) | 280 | ||
KEY TOPICS FOR SPEAKERS | 281 | ||
The role of uncertainties in urban drainage decisions: uncertainty in inspection data and their impact on rehabilitation decisions | 281 | ||
Hazard identification and risk analysis of water supply systems | 282 | ||
Infrastructure strategic management in contingency situations | 282 | ||
Rehabilitation of a large sewer: methodology for the Alcantara interceptor sewer | 282 | ||
FUTURE DIRECTIONS/EMERGING THEMES | 283 | ||
REFERENCES | 283 | ||
The role of uncertainty in urban drainage decisions: Uncertainty in inspection data and their impact on rehabilitation decisions | 285 | ||
INTRODUCTION | 286 | ||
Interviews with urban drainage managers: uncertainties in decision making | 286 | ||
Sewer inspections in the Netherlands | 287 | ||
DATA | 288 | ||
METHOD | 288 | ||
RESULTS AND DISCUSSION | 291 | ||
Data analysis: presence of defects | 291 | ||
Data quality: analysis of sewers inspected more than once | 292 | ||
Inspection data and sewer rehabilitation decisions | 296 | ||
CONCLUSIONS | 296 | ||
REFERENCES | 297 | ||
Hazard identification and risk analysis of water supply systems | 299 | ||
INTRODUCTION | 299 | ||
METHODOLOGY FOR RISK ANALYSIS OF WATER SUPPLY SYSTEMS | 300 | ||
Terminology of risk analysis and general theory | 300 | ||
Risk analysis under uncertainty | 301 | ||
Risk structuring | 303 | ||
GENERIC FRAMEWORK OF RISK ANALYSIS OF WATER SUPPLY SYSTEMS – PROJECT WATERRISK | 303 | ||
Water supply system description | 303 | ||
Catalogue of hazards and risk influencing factors | 305 | ||
Catalogue of undesired events | 305 | ||
Frequency analysis | 307 | ||
Consequence analysis | 308 | ||
Risk quantification and evaluation | 308 | ||
Database of risk reducing measures | 309 | ||
CONCLUSION | 309 | ||
REFERENCES | 310 | ||
Rehabilitation of a large sewer: Methodology for the Alcântara interceptor sewer | 311 | ||
INTRODUCTION | 312 | ||
METHODOLOGY | 314 | ||
RESULTS AND DISCUSSION | 316 | ||
Brief description of the case study | 316 | ||
Structural degradation mechanisms | 316 | ||
Degradation by internal causes | 317 | ||
Degradation by external causes | 320 | ||
CONCLUSIONS | 321 | ||
REFERENCES | 322 | ||
CHAPTER 7: ASSET DATA AND INFORMATION SYSTEMS | 325 | ||
Report: Overview of asset data and information systems session | 327 | ||
INTRODUCTION | 327 | ||
STATE-OF-ART | 328 | ||
Integrated support systems | 328 | ||
AMS as core system | 329 | ||
Best practice leakage control tools | 329 | ||
SHORTCOMINGS, CHALLENGES AND FUTURE TRENDS | 329 | ||
Challenges | 329 | ||
Shortcomings | 330 | ||
Future trends | 330 | ||
FINAL REMARKS | 331 | ||
Global approaches to asset management – an Australian integration of asset management techniques with executive business decision | 333 | ||
ASSET MANAGEMENT SYSTEM BUSINESS INTEGRATION | 334 | ||
First level integration | 336 | ||
Second level integration | 337 | ||
BUSINESS REPORTING AND DECISIONS | 337 | ||
AMS DEVELOPMENT DIRECTIONS | 339 | ||
CONCLUSIONS | 340 | ||
REFERENCES | 340 | ||
SIROCO, a decision support system for rehabilitation adapted for small and medium size water distribution companies | 341 | ||
INTRODUCTION | 342 | ||
Context | 342 | ||
Features of the SIROCO approach | 343 | ||
DEFINITION AND COLLECTION OF DATA | 344 | ||
Design phase | 344 | ||
Pipes | 344 | ||
Nodes | 344 | ||
Failures | 344 | ||
Data | 345 | ||
Collecting information | 345 | ||
BREAK PREDICTION MODEL WITH AMALGAMATED DATABASE | 347 | ||
Model used | 347 | ||
Validating the models | 348 | ||
HYDRAULIC RELIABILITY MODEL WITH DATA ORIGINATING FROM A GIS | 349 | ||
Presentation of software to calculate hydraulic reliability | 349 | ||
Constraints of network structure associated with using a GIS | 350 | ||
Dividing the network into hydraulic sectors | 350 | ||
Basic rules of network topology | 351 | ||
DECISION SUPPORT SYSTEM | 351 | ||
Criteria | 351 | ||
Impact criteria | 351 | ||
Opportunity criteria | 352 | ||
Calculating the multicriteria score of a pipe | 352 | ||
Standardisation method | 352 | ||
Aggregation methods | 353 | ||
INTEGRATED SOFTWARE | 354 | ||
Preparation of data base | 354 | ||
Configuring the hypotheses | 354 | ||
Production of data files, exported to Cemagref | 354 | ||
Processing at Cemagref and production of result file | 354 | ||
Importation of result file by user | 355 | ||
Definition of weighting | 355 | ||
Analysis | 355 | ||
CONCLUSION | 356 | ||
REFERENCES | 357 | ||
CHAPTER 8: ENGINEERING DEVELOPMENTS | 359 | ||
Engineering developments in asset management: Water supply | 361 | ||
INTRODUCTION | 361 | ||
SUMMARY OF THE STATE OF THE ART | 362 | ||
FOCUSING THE RISK ASSESSMENT AND UTILISING AVAILABLE DATA | 367 | ||
DETERIORATION AND CHANGE | 369 | ||
WILLINGNESS TO PAY (WTP) | 371 | ||
CULTURE AND ORGANISATION | 372 | ||
ENGINEERING SOLUTIONS | 372 | ||
Innovations related to wastewater network assessment | 374 | ||
CONCLUSIONS | 375 | ||
RECOMMENDATION | 376 | ||
REFERENCES | 376 | ||
Planning the upgrading of urban water networks – is there a need for the CARE-approaches | 377 | ||
BACKGROUND: THE GLOBAL PROBLEM | 377 | ||
INDICES OF AGEING IN URBAN WATER NETWORKS | 378 | ||
Leakage | 379 | ||
Burst frequencies | 379 | ||
Pipe materials and age | 380 | ||
Distribution network rehabilitation | 381 | ||
Wastewater collection systems | 382 | ||
STRATEGIES APPLIED FOR REHAB PLANNING | 382 | ||
Strategic planning, level of service | 382 | ||
The CARE support | 383 | ||
Tactical planning | 383 | ||
The CARE support | 384 | ||
Technical planning | 384 | ||
The CARE support | 385 | ||
WAYS TO USE THE CARE-APPROACH | 385 | ||
USE OF CARE-W, AN EXAMPLE | 386 | ||
LESSONS LEARNT | 390 | ||
ACKNOWLEDGEMENT | 391 | ||
REFERENCES | 391 | ||
Planning the rehabilitation of the Las Vegas water distribution network using CARE-W | 393 | ||
CONDITIONS AT LVVWD THAT LED TO REHABILITATION PLANNING PROGRAM; OBJECTIVES PURSUED | 393 | ||
Need | 394 | ||
Feasibility | 396 | ||
CARE-W TOOLS; PROGRAM THAT WILL BE SET UP AT LVVWD | 398 | ||
CURRENT ADVANCEMENT OF THE PROJECT; FUTURE&?show [NBsp]; PLANS | 400 | ||
Current advancement | 400 | ||
Performance Indicators (PI’s) | 400 | ||
Long Term Planning (LTP) | 401 | ||
Failure forecasting (PHM and LEYP) | 404 | ||
Hydraulic criticality (Relnet) | 406 | ||
Annual Rehabilitation Planning (ARP) | 409 | ||
Future plans | 412 | ||
APPENDIX 1 | 414 | ||
Water Resources indicators (This section refers to the whole network) | 414 | ||
Physical indicators (This section may refer to the whole network, sector, cluster or individual pipe) | 414 | ||
Storage | 414 | ||
Pumping | 414 | ||
Transmission and distribution network | 414 | ||
Operational indicators (This section may refer to the whole network, sector, cluster or individual pipe) | 414 | ||
Inspection and maintenance | 414 | ||
Mains, valves and service connection rehabilitation | 414 | ||
Pumps rehabilitation | 414 | ||
Water losses | 415 | ||
Failures | 415 | ||
Quality of Service indicators (This section may refer to the whole network, sector or cluster) | 415 | ||
Author index | 547 |