Relativity of Benchmarking

Benchmarking is a valuable tool for capital expenditure reviews.

It identifies average capital expenditure and relates the organization's programs to these benchmarked averages, trends or bands of performance.

The key elements of benchmarking are shown in the following issues:

• Percentile spread and mean values of:
  • Current replacement value per customer
  • Written down replacement value per customer
  • Replacement value per hectare of service area
  • Replacement value (Asset Condition Index).
• Capital Expenditure as a percentage of written down value (book value) of assets in:
  • Regulatory
  • Growth/augment
  • Renewal
  • Improvement
  • Non network assets (buildings and equipment).
• These programs can be broken down into sub-programs, for example:
  • Renewal or rehabilitation
  • Replacement
  • Adoption of new technology.
• System Sophistication:
  • Is the system automated and to what degree/level. SCADA, Auto switching?
• Information (support) systems and data:
  • What information systems are in use?
  • For what types of assets?
  • What level of detail is recorded?
  • Asset registers (including physical attributes)
  • Maintenance management
  • Job/resource management
  • G.I.S. location system.
• What detailed process diagrams, flowcharts or business case decision guidelines are available to staff on the key life cycle elements of asset management and how well are these followed?
  • Strategic planning
  • Creation
  • Operations
  • Maintenance
  • Condition performance and monitoring
  • Renewal
  • Replace
  • Dispose.