AOM SUBMISSION (20/3/2017)

MBA- IM (IVth SEM)

Submitted to Ms. Anjula Negi

CREATION OF SUITABLE O&M PLANS FOR TOWNSHIPS VIA

CREATION OF INVENTORIES AND ASSET CLASSIFICATION FOR
EFFECTIVE MAINTAINANCE.

By Bodhishotto Bhattacharjee

A13582615002

QUESTIONS:-

1. List, what are the assets/sub-assets that are expected to gain and lose value over time
in this case?
2. Draw a flow chart of the asset planning process based on the life cycle.
3. List the inventory items for CAPEX AND OPEX, and broadly requirements for cost
allocation.
4. Prepare a table for the capital budget in order of on-site development priority, along with
status of development.
5. List the key elements for asset management in this case, support answer with example.
6. Prepare a risk register, including the following titles:

Title Description of Description Rate Safety Cost Function Environment Risk

event/item of controls rating

Ref. Hazard type Current Scale 0-1 (risk rating) Total

7. Recommend the best implementation option, and the best person(s) or roles who shall be
responsible for a) executing it and b) monitoring it.
8. Further, to manage the risk, appropriate documentation is required. What are the key
documents, enlist with one example each.

.
 ANSWERS:-

1. FLOWCHART FOR THE ASSET PLANNING PROCESS

INITIATE ASSET PLANNING

INPUTS, CONTROLS AND

IMPLEMENTATION
MECHANISMS
CASES, STATE
BUDGET,
STRATEGIC
ANALYSE INFORMATION MANAGEMENT
MONITORING AND
PLAN, DISPOSAL
REVIEWING THE GAP ANALYSIS, SERVICE
PLANS, OTHER
CRITICAL SUCCESS DELIVERY
SPECIFIC PURPOSE
FACTORS AND OBJECTIVES,ASSET
PLANS BASED ON
IMPROVEMENT PLANS PERFORMANCE
LEGISLATIONS AND
GOVERNMENT
STRATEGY FOR MEETING POLICIES
OBJECTIVES

ADDRESS DEMAND AND

OPTIMIZE PEERFORMANCE

ASSET PLAN

MEET THE NEEDS, DISPOSE

WORN OUT ASSETS, MAINTAIN
SERVICE LEVEL BENCHMARKS

2. ASSETS LOOSING VALUE ASSETS GAINING VALUE

Water Pipelines and reservoirs Commercial real estate valuation

All government office and housing buildings Land Valuation
Sewerage infrastructure
Roads both internal and external
Electrical transformers & sub stations
Broadcast towers and linkages
Institutional buildings
All government vehicles
Medical and diagnostic centres
 3. Before the tabulation of the values for the inventory items the following
assumptions are made:-
Assuming the 100 acres is built from scratch and the 500 acres site already having
sufficient necessary levels of infrastructure and only upgradation for the services is
required. Both the sites is located in the state of Punjab and are under the PUDA
(Punjab Urban Development Authority) usually sites Mohali, Jallandar.
Population of the 100 acre township is 10000 expected to rise to 15000 in 10 years.
Population of the 500 acre township is 50000 expected to rise to 57000 in 10 years
Total budget 1000 Crores

Land mix utilization table for 100 acre Greenfield township is furnished below:-

PLOTTED AND
SL.NO LAND USE FLATTENED CAPEX OPEX
. DEVELOPMENT REQUIRED REQUIRED
1. Residential 47.75 acres
a. EWS 5 acres
b. Under plots 42.75 acres 250 Crores 15 Crores
c. Under flats Nil

2. Commercial 4.75 acres

a. Sector level 4.275 acres 8 Crores 25 lakhs
shopping 0.475 acres
b. Convenient
shopping
3. Institutional 9.5 acres 35 Crores 40 lakhs
4. Parks and Open spaces 5.70 acres 1 Crore 5 lakhs
5. Roads, Parking, 32.30 acres 20 Crores 3 Crores
Utilities etc.
314 Crores 18.70 Crores

TOTAL = 332.70 Crores

VIA EXTRAPOLATION AND REFERENCE TO TABLE

Land mix utilization table for 500 acre Brownfield township is furnished below:-

PLOTTED AND
SL.NO. LAND USE FLATTENED CAPEX REQUIRED OPEX
DEVELOPMENT REQUIRED
1. Residential 238.75 acres
d. EWS 24 acres 250 Crores 15 Crores
e. Under plots 213.75 acres Capacity addition
f. Under flats Nil
2. Commercial 23.5 acres
 c. Sector level 40 Crores 1.25 Crores
shopping 21.35 acres
d. Convenient
shopping 2.4 acres
3. Institutional 47.5 acres 150 Crores 10 Crores
4. Parks and Open spaces 28.70 acres 5 Crores 35 lakhs
5. Roads, Parking, 161.12 acres 83 Crores 12 Crores
Utilities etc.

528 Crores 38.6 Crores

IN TOTAL 900 Crores for both sites TOTAL = 566 Crores

ASSUMPTIONS FOR COSTING

1. EWS size of house 300 sq. feet, LIG- 450 sq. feet, MIG-950 sq. feet ,HIG
1400 sq. feet, Premium 3000 sq. feet
2. Price of house at 4 times the annual income of households.
3. Housing to be a combination of LIG,MIG and HIG
4. Cost per house of EWS is 2.5 lakhs, LIG is 4 lakhs and HIG is 18 lakhs and
premium flats at 40 lakhs
5. 100 premium flats, 600 LIG flats, 400 EWS flats, 500 MIG flats, 600 HIG
flats.
6. All in INR (not in Crores)

NAME CAPEX PER CAPITA OPEX PER CAPITA

Sewerage 4000 62
Roads 6000 450
SWM 900 270
Urban Transport 2880 600
Water Supply 2030 800
Traffic Support Infra 600 50
Lighting 207 8

7. Brownfield project has existing infra hence only selected projects to be

undertaken.

4. TOP SITE PRIORITY LIST WITH BUDGET

SLNO. ACTIVITY PRORITY BUDGET PROGRESS

1. CIVIL WORKS 400 Crores Initiated
2. MECHANICAL WORKS 130 Crores Initiated
3. MANPOWER 50 Crores Initiated
4. AUXILLARY UTILITIES 250 Crores Initiated

5. KEY ELEMENTS FOR ASSET MANAGEMENT

Spatial representation of the imagery of the zones

a. Strategic long term view.
creates viability of the functionality. Open source GIS
b. Annual budget
platform is one of the ways for the data capture and the
c. Annual report software of the Assetfinda which creates the flexible
d. AM policy, plans map editing tool.
e. Governance.
f. Levels of Service. Triple principles of train, management, adoption of real
g. Data Systems. time site and project adoption of web based development
process.
h. Evaluation.
IN PRINCIPLE WITH DATA SYSTEMS

6. RISK REGISTER FOR THE WASTE MANAGEMENT SECTOR

{In both the sites) {1 is very low and 5 is very high}

Title Description of Description Rate Safety Cost Function Environment Risk

event/item of controls rating

1. Rag picking of Appropriate

the non-
Locations 3 5 2 4 5 48
recyclables by
for
scavengers voluntary
R1 pickups

2. Degraded quality Quality

of waste for
checkpoints
WTE plants 3 2 1 4 5 36

R2

3. Low service Extensive

coverage zoning and
deployment 5 1 5 4 5 75
R3

4. No segregation at Source
source based
segregation
R4 based on 4 5 1 3 5 56
awareness
 integrating
at the
household
level

5. Low fee Digital

collection linkage
efficiency with 5 1 5 3 1 50
household
R5

6. Repeated
checking
Failure of and
collection utilization
equipment 3 5 3 5 5 54
of
R6 technology

(All data are sourced from the DPR of WTE Mumbai 2010 prepared by IDeCK)

1. 50% cities lack SWM facility

2. 50% of households with better segregation
3. 78% of waste being picked up by manual scavengers
4. 20-30% spent by ULB on transportation.
5. Total ULB spending is 15%
6. 60% of inert objects

7. TABLE FOR SOLUTIONS EXCECUTION AND MONITORING

POSSIBLE SOLUTIONS EXCEUTION MONITORING

AGENCY AGENCY
Some private tech
R1 Enable the GPS based solutions player like ULB
IBM,CISCO
R2 Organic Content Measuring Procured based on State Pollution control
instruments item rate contract Board/CPHEEO
from the vendors
R3 Increase in the number of vehicles ULB ULB
R4 Awareness Campaigns Health department or
ULB Directorate of Municipal
Administration
R5 Digital transactions platform IBM/CISCO ULB
R6 Repeated inspections module STATE Directorate of Municipal
framework GOVERNMENT Administration
 8. DOCUMENTATION MATRIX

SOLUTIONS DOCUMENTATION
State level policy framework on
R1 Enable the GPS based solutions technological solutions on solid waste
management
R2 Organic Content Measuring instruments Procurement documentation
R3 Increase in the number of vehicles Purchase orders by the ULB and transaction
based on specific models.
R4 Awareness Campaigns General Notice and advertisements
R5 Digital transactions platform Management Contract
R6 Repeated inspections module Inspection Manual for solid waste
framework management vehicles