Darron Passlow (guest) 18 Nov 2010 02:13
Wayne
Hope you do not mind my commenting on this AMP.
You invited me in on OzLoop. Nice to have a broader community involvement.
My comments come from my extensive experience in developing AMPs at WSC.
1 Very good job here. Might look to do this at WSC (currently all AMP on internal intranet)
2 Just a quick analysis of this plan;
Can I suggest you need to look at your annual depreciation amount ($1,151,769.53 - what accuracy!!)
It does not look right to me. It is the first thing I work out in an AMP and calculating Average Annual Asset Consumption (AAAC)
AAAC (= depreciation) = CRC value/Economic Life (all components then add) = approx $3.2M (my rough calc)
I then calculate Sustainability Index (not gap) as SI = (Maintenance expend + Renewal Expend)/(Maint + AAAC)
Basically compares (and smooths) the comparison of renewal to your depreciation and tells you how you are trucking.
Your SI = 0.78 (which is super - compared to alot of other Councils I have studied).
Well done to BRC. This way of looking at AMP performance provides a high level KPI that can be measured annually to monitor progress or regress.
Here endeth Lesson # 1
Regards
Darron (the phantom community member)