Recent IAM presentation by Patrick Reniers of Dunea, and Richard Hawkins of SEAMS on the Dunea Asset Investment Planning journey, embedding it into their organisation and their significant results to date.

1. Embedding Integrated Asset
Investment Planning
Patrick Reniers | Dunea NV
Richard Hawkins | SEAMS
The Dunea Journey for Distribution Mains

2. Contents
 Introduction
 The Netherlands and the Dutch drinking water industry
 Dunea: facts & figures, production and supply, and distribution mains
 SEAMS: Who are we and why do utilities work with us?
 ‘The AIP Journey’: overview from start to business-as-usual
 Modelling: asset information, pipe degradation and consequences
 Model results and information usage
 Enabling successful implementation
 Achievements and system benefits
 Where next?

3. Introduction | Dunea facts and figures
1.3 million
drinking water customers
1 million
visitors in dune areas
4.369 kilometer
distribution mains
147 million euro
net turnover per year
600 km2
surface of supply area
500 FTE
employees
76 billion liters
drinking water per year
22.5 km2
managing dune area

4. Introduction | the Dutch drinking water industry
 10 drinking water companies
 Branch organisation VEWIN
 Joint research institute KWR
 Inspection Environment and Transportation
(IL&T) as a regulator
 Efficient production and supply of drinking
water, ranking amongst world’s best

5. Introduction | The Netherlands
o The delta area of the rivers Rhine and Meuse
o Western part: mostly brackish groundwater
 Exceptions: river banks and dune area
o City formation alongside dunes late mediaeval period
o Location factors:
 Good drinking water from the dunes
 Agriculture and water transport in and through peat bog area
o The Hague in the 19th Century:
 Rapid population growth
 Drinking water supply based on dune water extraction
 Depletation of dune water stock
o Solution: using river water to supplement rainfall

6. Introduction | production and supply

7. Introduction | distribution mains
2015 overview
Total length 4.369 km
Replacement value ~1.6 billion
CAPEX 10 million p/a
Average age 31 yrs
Connection density 93,8 connections/km
CML spontaneous bursts 1,24 min
Bursts spontaneous 133
NRW 4,2%
Materials used PVC (61%), AC (13%),
CI (13%), PE (8%)

8. What is Integrated Asset Investment Planning?
1. Strategic Investment Planning
– ‘What if’ Scenarios
– Single Asset Type
– Risk and Project Portfolio
2. Strategic Investment Plan to Deployment
– TOTEX Investments
– Including Resourcing
– Automating the Process
3. Integrated Business Planning – BAU
– Monitoring Predicted vs Actual
– Optimising Investment Decisions based on the latest information

9. Process of Turning Data into Decisions
• Triggers
• Prioritisation
• Linear Optimisation
• Non-Linear Optimisation
Assets &
external data
Optimisation

10. What Results did Dunea want?

11. What else was important to Dunea?

12. Journey | Overview from start to business-as-usual
2010
Sense and urgency
• Merely age based
investment strategy
• Increase in CAPEX:
42 km – 1% p/a
• Supervisory board;
call for substantiated
investment strategy
• Aligned with corporate
strategy and
corresponding
performance, risk and
cost levels
• Supportive to LTAP
2015
2011
Market research and
pilot testing
• Joint market research
with all Dutch drinking
water companies
• Short-list of 7 tools
• 4 companies to start a
pilot
• Dunea selection EDA
from SEAMS
•Different drivers for
rehabilitation
•Both strategic and
tactical/operational
•Decision supportive:
‘what if’ analysis
•Track record; UK
drinking water
companies
2012-2013
Full scale modelling
and shadow
processing
• Data collection: asset
characteristics, risk
ranking, connections,
soil type, urban
density, hydraulic
criticality etc.
• Degradation
processing and
validating
• Collaboration from the
outset: tool
requirements, data,
analysis, KPI
definitions etc.
• Sensitivity analysis of
model parameters and
high priority data
improvements
• Working parallel to
current business
planning processes
2014-2015
In business
• Internal training and
education
• Quality review and
assurance
• Sign-off by the board
• EDA used for planning
the long term
rehabilitation
programme 2015
• BC support for
scheme choices
• Geographical
blueprint for support of
3rd party discussions
and scheme planning

13. Model | foundations
Asset register
Failure and pipe degradation data
OPEX and CAPEX
Proactive or reactive
Optimisation

14. Model | asset information
• Asset register
o Material, diameter, length, year laid, coordinates, failures etc.
• Risk scores
o External effects of leakage (e.g. dykes, roads, railways)
• Soil type
o Pipe degradation, failures modes
• Connections
o Link between objects of supply and valve sections
• Urban density
o CAPEX and OPEX effects
• Hydraulic criticality
o Criticality index of supply (Synergee)
• Etc…

15. Model | pipe degradation
• Performance and risks based on the pipe degradation
through time
• Multi-perspective for solid degradation models:
o Comprehensive Dunea failure registration (> 2003)
o USTORE data (uniform failure registration) with data from 7 Dutch
drinking water companies (> 2009)
o Joint research and expert judgement
o Tested against UK data (CI)
o Validated by research institute KWR

16. Model | consequences
• Forecasted failures implicate Customer Minutes Lost (CML),
number of bursts, OPEX, CAPEX and Risk levels
• CML Green and CML Red to offset proactive with reactive
interventions
• Risk:
• Environmental : pipes ranked on their external burst effects
(standardized)
• Availibility waterdelivery: hydraulic criticality calculation
Overall risk ranking aligned with corporate risk matrix

17. Results | strategical level
• ‘Do nothing’ scenario insights for 25 yrs (rationale for
investing)
• Intervention strategy insights
• Different scenario calculations showing cost, performance and risk
levels as a result of different scenario choices
• Enabling the asset owner in selection of best strategical fit
• Supports in formulating long term investment strategy

18. Model usage | tactical level
• Translation from the strategical plan into AIP (1-10 yrs horizon; volumes and costs)
• Distribution of strategic investment levels to individual pipes
• Geographical blueprint for replacement planning incl. prioritization
• Support 3rd party discussions with other utilities/local authorities in scheme planning
• Business case support for scheme choices

19. Enabling successful implementation
Key staff involved from the outset
• Sourcing data, deriving relationships, defining configuration
• Commitment and responsibility for model building and improving current working practices
Asset owner involvement
• Allowing for trial and error
• Input for model foundations and consent
• Active dialogue for defining strategic scenarios and final decision making
Data and quality (re)assurance
• Data quality matrix, sensitivity analysis
• (external) Quality Review Board; 6 different areas of expertise (trust and confidence)
Engaging with the wider business
• Reserve time for involvement, feedback, communication and celebration
• Overcoming hesitance to change and enabling stakeholders to play their part

20. Achievements | system benefits
Reduced length of replacement p/a
• From €12mln - €10mln; 42km – 35km!
• Achieving current or better performance levels through better targeted CAPEX decisions
Clear line of sight
• From corporate strategy to operational delivery: driving BP and O&M activities
Risk identification and mitigation
• Improved targeting of pipe maintenance to mitigate risk of adverse pipe performance &
service events
Long term perspective
• Providing confidence to management and board in LT capital decision making
Mindset and AM thinking
• Knowledge transfer
• Decision supportive for selecting best fit solution
The journey Dunea set out to boost asset management
performance took us a number of years. But as they say;
“Good company makes the journey seem shorter”
SEAMS and their product EDA did just that. Giving us great
benefits and valuable insights.
R. de Bont – Asset Manager Dunea
With EDA we were able to shift the way we were thinking
about future rehabilitations of our distribution pipes; from
solely age dependent towards a balanced view considering
performance, risks and costs.
Eventually, it saved us a lot of money by not realizing
unnecessary early replacements.
As a result we have been able to satisfy our regulator with
confidence that we are in control of our network
management.
A. de Waal-Malefijt – Asset Owner Dunea

21. Where next?
Continue focus on PDCA-cycle
- Validations; observed performance and costs compared to predicted
- Model improvements (Act)
- Revising the current AIP
- Expanding the model; Social and/ or environmental cost, water quality?
From a single asset group to a multi-asset perspective
- Other Assets
- Trunk Mains
- Production installations
Cross Asset Optimisation
Project and Risk capture and management
Less reliance on consultancy for model updates and runs