Asset Standards Authority, Industry Briefing · 2019. 5. 24. · Industry Briefing, 5 April 2016 | 7 • Government commitments – $68.6 billion commitment to infrastructure –

Asset Standards Authority Industry Briefing, 5 April 2016 | 1

Asset Standards Authority, Industry Briefing

AEO – delivering a more capable and sustainable NSW transport and infrastructure industry

5 April 2016

Welcome Mr Luke Homann Principal Manager, Authorisation and Audit Asset Standards Authority


Emergency


Briefing themes

• Long-term partnership of the public and private sectors • A new way of doing business • Strategic vision of AEO • AEO program update – growing capacity and capability

to meet delivery demands

AEO – delivering a more capable and sustainable NSW transport and infrastructure industry

Minister for Transport and Infrastructure The Hon. Andrew Constance MP, Member for Bega

Secretary, Transport for New South Wales Mr Tim Reardon

Record investment in transport


• Government commitments – $68.6 billion commitment to infrastructure – $38 billion for transport – a further $20 billion for transport from the lease of poles and

wires

• Driving a significant pipeline of work – roads – public transport – Freight

• Regional NSW – evolving the transport system to meet current and future needs

The “eight pieces” of engineering assurance


Doing business


• Open, honest and transparent engagement with – industry, – our customers, – our partners, and – local communities

• Future for regional transport…full of opportunity • More effectively we work together…the more AEOs

and their suppliers will thrive • Congratulations to all AEOs

Deputy Secretary Freight, Strategy and Planning Ms Clare Gardiner-Barnes

The strategic vision of AEO


• Globally leading initiative – of critical importance • Government and industry as collaborative partners • Peer relationship…not a blame game • Two-way dialogue and learning • Transparency - accountability and responsibility

– TfNSW for requirements – AEOs for the engineering solution


AEO strategic vision - safety assurance

• Safety is paramount • Safety assurance a vital component • Collaboration to more fully understand…

– accountabilities and – responsibilities

….under the AEO Model

Stakeholder management

Coordinate delivery with

end user Engineering Assurance

Safety assurance argument


AEO strategic vision - efficiencies

• It’s about cost reduction – time and resource efficiencies

• Streamlining processes and building efficiencies – risk and value based – focus on maximising benefits to customers and people of

NSW


AEO strategic vision - opportunities

• Making progress…but improving AEO model • Opportunities to improve must focus on outcomes for

our public and freight transport customers • How we are going to do this?...

Executive Director, Asset Standards Authority Mr Jim Modrouvanos


AEO – maturity of the “community”

Growth in maturity supports

A more sustainable

industry

Better “bang for the buck”

Quicker, more consistent outcomes


AEO maturity – 2 ½ years of the model • Still variance between the documented system and its deployment but it

is improving • Environment to enable this needs to be enhanced


Why AEO?

Government commitments • $68.6 billion commitment to infrastructure • $38 billion for transport • a further $20 billion for transport from the lease of poles and

wires


AEO – delivering change


AEO – achieving the benefits


AEO effects - technical review reduction

Technical Review

• 6,000 reviews

• 100,000 comments

TfNSW Efficiencies

• 4% of design costs or 0.3% of project cost

• Potentially $12M p/a

Industry Efficiencies

$300 per comment to close

Reduced

AEOs assure the engineering solution TfNSW responsible for requirements

•

•


AEO effects - engineering authority

Engineering Authority

• All key engineering personnel

• No work without EA

TfNSW Efficiencies

1 – 4 weeks to process

Industry Efficiencies

• 2-3 days effort to prepare

• $2,000 - $3,000 effort per person*

• 1 – 4 weeks delay to commence work

Gone!

AEOs now accountable for their own engineering authority


AEO opportunity - reduction in tender response effort

Tender Responses

• “Continually reproduce” how their engineering systems work

• Price in schedule risk for Technical Reviews and Engineering Authority

TfNSW efficiencies

Tender response assessment time savings

Industry costs

• Repetition of how theirengineering systems work

• Demonstration of understanding and describing their approach

• Decrease in systems engineering and management plan context by 30% or more

Work in progress

Evaluation should focus on assurance methodology


Learning the lessons

• Assurance expectations up and down supply chain AEO interaction • Clearer accountability among supply chain

• Importance of ‘integrating’ AEO

• Removed inconsistencies through AEO Framework review • Streamlined assessment process to reduce processing

Changes times • Risk-based approach to surveillance • Scaling application to complexity of authorisation scope

• Commissioning of work by AEOs • Industry driven changes to standards

Notable events • Removal of Engineering Authority and Design Review • 58 AEOs in supply chain • New entrants to market are delivering for TfNSW – competition!


The future of the AEO Model

• Assessment process more closely linked to procurement schedule

• Resolve integration of niche capabilities • AEO Community of Practice:

– fostering increased collaboration between TfNSW and delivery partners

– challenging the contracting arrangements to enable innovation and better outcomes for NSW

– supporting delivery of third party works by RMS and developers through AEOs


The future AEO Model . . . next steps

• Transitioning the model to other modes – Light Rail – complete – Maritime, Buses – commenced

• Recognition of industry achievement . . .


AEO Device – recognising industry status


Thank you

Asset Standards Authority Level 7, 12 Help St, Chatswood 02 9422 7187 [email protected] asa.transport.nsw.gov.au

mailto:[email protected]

http://www.asa.transport.nsw.gov.au/

Asset Standards Authority, Industry Briefing · 2019. 5. 24. · Industry Briefing, 5 April 2016 | 7 • Government commitments – $68.6 billion commitment to infrastructure –

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