Asset Economics, Lifecycle & Costing Management

About

Key Learning Objectives
•   Improving asset management by understanding and appreciating the financial objectives
•   Understanding and applying relevant budgeting and cost management process related to asset management
•   Identifying efficiency improvements to reduce asset operation and management costs
•   Evaluating capital investment decisions in the context of asset economics
•   Building a robust pricing mechanism for asset outputs
•   Formulating business models for cost effective service delivery
•   Developing performance management frameworks
•   Managing assets within acceptable risk thresholds
•   Understanding the linkage between asset management, business plans and financial plans
 
Effective asset management strategies require that both physical and non-physical assets are holistically managed and operated. The objective is to provide an efficient and effective active service so as to meet the assets service delivery requirements at the lowest long run cost. Applying asset economic modelling to effectively manage life cycle cost of owning, managing, operating and maintaining assets combines asset management principles with robust financial management tools and techniques.

Good asset management integrates with corporate strategy development and business planning and ensures that non-asset solutions, life cycle costs and risks are considered through the key phases in asset life cycles.

The various asset life cycle phases are supported by numerous planning philosophies and business support systems including asset information management systems, asset management plans, activity based costing and management systems as well as integrated performance management frameworks. They all support good investment decisions. Effective management of life-cycle asset costs is the joint responsibility of the finance professional and the asset manager of the organisation. This course will take participants through the entire asset and business planning framework and also provide an understanding of performance management frameworks.

“Aubrey has the knack of presenting relevant information at the correct time. He knows his stuff and has excellent experience to share with the class.”
Colin Glass, Accountant, Department of Corrections

Who should attend?
•   Asset Managers
•   Asset Planners
•   CFO’s
•   Financial Controllers & Managers
•   Corporate & Business Planners
•   Strategic Planning Managers
•   Pricing Regulators
•   Economists
•   Project Managers
•   Operational Managers

Outline

Day One

Asset economics: Balancing financial and asset outcomes
•   What is the concept of asset economics?
•   Relating service strategies to asset capabilities
•   Understanding the relationship between asset management and financial objectives
•   Factoring risk into asset economics
•   Achieving the optimal balance and minimum life-cycle cost

Linking asset management to organisational business planning
•   Understanding an organisation’s strategic planning framework
•   Establishing the ultimate goals and objectives of the organisation
•   Establishing customer requirements and servicing strategies
•   Evaluating asset capability to deliver the service outcomes and identifying gaps

Identifying and understanding the underlying cost base
•   Analysing financial data to identify types of costs
•   Capturing operational data that will assist with understanding costs
•   Establishing a direct operating expenditure (DOE) base line
•   Identifying the financial performance of the assets

Applying ABC/ABM principles to asset economics
•   ABC/ABM and output budgeting
•   Rolling forecasts - a continuous view of the organisation
•   Identifying mandatory and discretionary spend
•   Prioritisation of discretionary spend
•   Using internal benchmarking as a de-facto budget methodology
•   The role of technology in the decision to change

Day Two

Capital investment decisions
•   Establishing a robust framework for investment planning management
•   Evaluating options based on sound financial bases
•   Applying traditional financial evaluation techniques
•   Management accounting tools and techniques supporting investment decision making
•   Management gateways to ensure robust decision making

Asset management strategies
•   Definition of the asset management concept
•   Developing a strategic framework for asset management
•   The asset planning process
•   Identifying and evaluating life-cycle management options
•   Identifying and costing the risks in asset management strategies
•   New business models for efficient and cost effective operations

Developing asset management plans
•   The purpose of the asset management plan
•   Contents of an asset management plan
•   Data sources that contribute to the asset management plan
•   Uses of the asset management plans
•   Financial input into the asset management plans
•   Keeping asset management plans current

Developing an organisational performance management framework
•   What are the relevant performance indicators?
•   Introducing non-financial measures to complement traditional budget and cost controls
•   Mining data for effective asset management
•   Developing reporting formats that make sense to the business
•   The ultimate performance management framework
•   Developing an asset scorecard

Facilitator

Aubrey Joachim , Principal Consultant, Leading Edge Change

FCMA; MBA; GAICD, Global Vice President CIMA

Aubrey Joachim is a Fellow of the Chartered Institute of Management Accountants (CIMA) UKas well as an MBA. He has more than 25 years of handson management accounting experience with global conglomerates. Aubrey has spent most of his working life in industries and organisations that have significant investment in infrastructure assets working alongside engineers, project managers, asset planning managers and investment program managers providing value adding financial management advice. This unique exposure has given him the opportunity to relate strategic financial and management accounting concepts to the effective management of large asset portfolios. He is well qualified to bring together the financial and asset management disciplines in developing robust models for optimally managing the life cycle of assets. His country listing includes Sri Lanka , Dubai , Singapore , U.K. and Australia .

Aubrey began his career at Unilever Sri Lanka in 1973, covering all aspects of management accounting. This led to him start his CIMA studies. He moved to a senior accounting position in the textile and export garment industry in 1979. Aubrey left Sri Lanka in 1982 to work with McDermott International Inc., a multinational US Corporation in Dubai, involved in the oil and gas industry. He moved through senior financial management and then transferred to their London operations in 1992, becoming accounting manager. Aubrey migrated to Australia in 1993 and, after a spell in the Financial Services Sector, joined Sydney Water Corporation in 1994. He eventually became the financial manager of the largest division of the business, until 2005. He provided financial management support to the operations and maintenance areas and spent the last 6 years in the asset management division in which role he introduced innovative financial management practices including new budgeting techniques as well as implementing activity based costing / activity based management that formed the basis for understanding operating cost structures and establishing a performance management framework. These achievements supported a successful regulatory pricing submission and laid the foundation for establishing a performance management framework that will help monitor the continuing asset and financial performance of the organisation.

He has written articles on current management topics, which have been published in professional journals, Financial Management Magazine, and on this website. He writes a monthly article on management accounting for Charter – the magazine of the Australian Institute of Chartered Accountants. Aubrey won the worldwide CIMA/ Reed Management Accounting competition in 1991 and was runner up in 1992.

Aubrey Joachim is on the Council of CIMA U.K. and is on the Executive Committee. He is also the Australasian Director of the Beyond Budgeting Round Table (BBRT).

Previous attendees of Aubreys A practical approach to Building a Rolling Forecast Process Seminar say:

"Good Content, focused on moving forward versus moving back"
John Cash, Commercial Manager, Fletcher Aluminium

"The presenter’s real life experience was excellent"
Geoff Yates, Management Accountant, TNL Group Ltd

"Seminar met all my needs, gave me a lot to think about & questions to take back to work on how we will manage this change."
Karen Kingswood, Management Accountant, Met Service

Aubrey Joachim is also facilitating:

• Budgeting and Forecasting for the Public Sector
• Strategic Planning, Budgeting and Rolling Forecasts

In-house Training

Prices and Registration

* Early bird price available when you register and pay before the dates listed.