Projects

Asset Management Planning/ Modelling

The Victorian Government Department of Justice required a methodology for determining the asset requirements of the Department and linking this to the Department's Corporate Plan and the Government's policy agenda.

SGS was able to establish explicit links through the application of the methodology by Departmental business units. The forecasting model was then used to determine funding requirements. The methodology has allowed annual funding to be meaningfully determined and the reliance on redundant depreciation style methods abandoned. Under a 5 year scenario of accelerated replacement of dysfunctional assets, the model estimates a potential saving of $36 million over the next 14 years, assuming no change in output requirements. The model also enables assessments to be made of the funding required by year, business unit and asset type and has a forecasting function as well as means for estimating next years budget needs.