Handover

This phase is second only to the project identification / selection and validation phases in terms of potential savings.

It is vital that organization does not allow assets to be created without all the necessary logistics and support systems in place.

Asset data and knowledge should be handed over into information and knowledge management systems.

All data and knowledge should be logged in accordance with the organization's data standards and data flow / roles and responsibilities.

The key issues covered in commissioning are:

• Acceptance testing
• Modification of the operational performance targets and reporting arrangements
• Incorporate these in the data warehouse and reporting systems
• Modify Key Performance Indicators (KPI's) where necessary.

The key issues in handover include:

• Logistics:
  • Spare parts inventory optimized to suit the supply chain issues
  • Service materials as required by the asset.
• Support systems including:
  • Complete asset register and populate in accordance with policy / standards
  • Complete the necessary asset valuations and component break up in accordance with the asset accounting standards including:
    • Add 'as built' networked assets data into the GIS (or plans if not available)
    • Complete 'as built' AutoCAD drawings for all structures and facility assets and link to Asset Register
    • Load the proposed maintenance plan and strategy into the CMMS, including the resource management aspects and budgets
    • Set up full operating budgets and resource management allocations
    • Load all operations manual items into the electronic system
    • Set up the necessary asset performance monitoring and reporting systems
    • Complete Emergency Response Plans where considered necessary and economically viable
    • Make the necessary entries into the organizations asset management plans.

Post Operational Evaluation

Post operational evaluation covers the asset's actual costs and performance.

In reaching this point in an asset's life we have made lots of assumptions and sometimes used data that was not verifiable.

It is important that the organization has a process for reviewing the actual performance and costs to:

• Ensure that all manufacturers' and constructors' promises on performance and cost of operation and maintenance are being achieved. If not, then we should be identifying legal liabilities that may apply.
• Optimize the operations and maintenance plans and other impactable life cycle costs (such as depreciation) and correct these as soon as possible, rather than let them impact on costs for then next 20 years.

The Handover Process

Handover involves:

• Final joint inspection of the new asset by the contractor and new owner and/or managing authority
• Finalization of asset management information systems prepared by the contractor
• Validation of data supplied by the contractor in the asset management information system
• Training of operation and maintenance staff who will be in control of the new asset.

The asset management information system prepared by the contractor is key to the asset handover because if the information systems are well populated and process and practices of operation well documented, then the new operations staff will have an easier transition into full operation and control of the new asset.

Here is a checklist of entries of asset data at handover time:

1. Asset Register Information

2. Maintenance Management System Inputs

3. "As Constructed" Plans and Records

• Hard copy
• Electronic

4. Operations Manual

• Hard Copy
• Electronic

5. Data Collection, Processing and Performance Monitoring System

• Manual
• Electronic
• Hardware

6. Emergency Response Plans

7. Strategic Planning Systems

8. Asset Accounting (Capitalization)

Asset Registers

It is generally expected at handover that a completed asset register is made available to the new owners of newly created, rehabilitated, repaired or replaced assets.

Asset registers:

• Satisfy the needs for financial reporting and accountability
• Provide the basis for effective asset management.

For example, recording the historical (original) cost of an asset will not be as useful as recording the current replacement cost for valuation and renewal purpose.

A sample asset register entry for a Sewerage System Component is shown below:

Legend:

(1) To be completed by Authority

(2) To be completed by Contractor

(3) To be completed by Contractor in consultation with Authority

"As-Constructed" Plans and Records

The contractor should prepare 'As-Constructed" plans and records and hand them over in a form to suit the asset owners.

Generally this is hardcopy-certified copy or in electronic form.

Electronic transfer of the "as constructed " details generally results in greater efficiency however, it is important to ensure there is consistency between the source documents and the owner's existing asset management information systems. This includes compatibility with:

• Data formats and layout
• Data models and configuration
• Asset attribute lists.

The asset owners should provide information on their existing hardware/software system in the contract specification that details "as-constructed" plans and records.

The contractor is expected to provide "as-constructed" plans and records in conformance with the owner's systems.

Operation Manuals

Operation manuals are essential for the efficient and effective operations of any new asset.

An operation manual is be submitted at handover and should include a complete description of the operation of the asset as well as details of the operation of components of the asset.

Details provided in the manual should include:

• Asset component description
• Asset component operation
• General operations advice.

Performance Monitoring System

Performance monitoring involves:

• Collection of data on the operation and maintenance activities of the assets
• Comparison against set targets and standards.

The data may be feedback following maintenance or details of the assets operation and condition.

The prime concern for a performance monitoring system is the cost effectiveness of capturing data.

Emergency Response Plan

In an Emergency Response Plan there should be:

• Possible modes of failures
• Likely hazards and impacts
• Possible remedial actions
• Evacuation procedures
• Contract personnel.

Strategic Planning Systems

Strategic planning systems help achieve lowest life cycle cost for an asset.

Asset owners need to assess the relative merits of the various options available to overcome the failures and potential failures of an asset.

The strategic options include:

• Do nothing
• Maintain status quo
• Operate the assets differently
• Alter maintenance
• Augment the asset
• Refurbish, rehabilitate or replace
• Operational changes
• Reduce levels of service
• Rationalization
• Alter demand management
• Renew.

Asset Accounting (Capitalization)

Details need to be entered into the relevant information system to identify and account for newly commissioned assets.

As part of international accounting practices, authorities are required to value their non-current assets.

The asset register is used for that purpose and, should contain the relevant information on:

• Asset valuation
• Effective lives
• Year of construction and commissioning.

This information is best obtained when the assets are first handed over.