Supporting organisations to develop investment planning capabilities through defining and implementing business processes, advising on the adoption of appropriate tooling and conducting lifecycle modelling.
“We are constantly being driven to make the most effective use of budgets, and therefore need to ensure we prioritise and optimise spend accordingly whilst delivering on all expected outcomes. This is made more difficult by having disparate approaches to planning and no single view of all investment needs across our organisation.”
Catalyst for Change
Increased demands from shareholders or scrutiny from regulators, requiring
a greater transparency of investment needs and an evidence-based approach to justifying spend.
An approach to investment planning complementary to global good practice and an organisation’s level of maturity, supported by the key building blocks required for any planning process.
- Established lifecycle modelling (P4A) and risk-based investment prioritisation tools
- Reputation for impartial advice, including the Asset Investment Planning (AIP) study containing independent advice
- Good practice investment planning capability model developed using input from multiple sectors
Northumbrian Water Group (NWG) is a UK water and wastewater company serving customers in the North East and East Anglia regions. AMCL has been supporting NWG on their journey towards a leading approach to optimal whole life cost intervention planning. AMCL were chosen based on our extensive knowledge of the business processes that enable optimal decision-making and the technology market that supports investment planning. The engagement began with a focused review of the current approach, before engaging with stakeholders across the organisation to define an optimum ‘future state’ process. The intervention planning process requires input from multiple functions across an organisation, from its leadership teams through to on the ground delivery partnerships. AMCL have been successful in securing buy-in and commitment from across all functions at NWG to this newly defined ‘future state’. AMCL and NWG then developed a transformational roadmap, that will build the necessary capabilities across the areas of Process, People, Data and Technology. To de-risk the technology tasks within the roadmap, various AMCL templates were used to identify the significant number of inter-related business and functional requirements for a commercial technology solution to support the optimised process.
AMCL also led development of the organisation’s first Value Framework to move from solely asset-centric, risk-based decision making to value based decisions. This kind of framework is central to any successful intervention planning process and has the principle purpose of translating an organisation’s vision and ‘reason for being’ into a set of tangible measures. These can be used to consistently appraise intervention options, support prioritisation and optimisation, and enable effective benefits realisation post intervention. Participants across all functions have noted immediate benefits from this engagement as those involved in investment decision making now have a consistent and transparent view of how projects should be identified.
AMCL was commissioned by the Crossrail project in 2006 to develop a bottom-up model to validate top-down cost estimates. The model was well received by Transport for London and the Department for Transport and subsequently enhanced to provide whole-life cost modelling of the future Crossrail railway for the first 50 years of operation. For over a decade, as the project and designs matured, the model has been developed both in data and functionality to support the ongoing maintenance cost estimates.
AMCL led the collation of stakeholder requirements, development of a detailed functional specification and subsequently delivered a compliant model. The model generates costs for planned and unplanned maintenance, refurbishments and renewals of all Crossrail assets including railway systems, stations, shafts, portals, tunnels and depots. The model considers labour, plant and material resources. Additional costs and constraints that are identified can be adjusted to allow modelling of contracts, different system configurations, asset owners and life spans.
The model has been integrated with a Business Analytics platform to allow remote viewing of the outputs via web browser without needing the full model. Alongside this the front-end user interface is adaptable to user needs. The back-end allows user inputs via simplistic data forms within a clearly structured and presented hierarchy of input requirements, variables and options.
The model continues to be in use by Crossrail and the Infrastructure Managers to provide cost estimates for budgetary submissions and the setup of contracts.