functional asset management - engineering in practice for a

Functional Asset Management:Functional Asset Management:Functional Asset Management:Functional Asset Management:PERFORMANCE MEASURES AND ANALYTICS, WHERE WE PERFORMANCE MEASURES AND ANALYTICS, WHERE WE

ARE NOW AND WHERE WE ARE GOING IN THE FUTUREARE NOW AND WHERE WE ARE GOING IN THE FUTURE

Kevin Green, PMP – VP of Professional ServicesCharles Pilson, PE, PhD – Product Manager

AgileAssets, Inc.

OctoberOctober 20112011

©AgileAssets Inc.

OctobeOctobe 00

Introductions (5 mins)

Application of Asset Management Principles (10 mins)

Performance Measures & Analytics (25 mins)

Open Q&A (10+ mins)

Corporate History

1975 1995 2003 2004 20051994

Founded�in 1975 asFounded�in 1975 as

Became�TRDI

Became�TRDI .

Add d M iAdd d M i

Re�branded�company�as�AgileAssets�in 2004

Re�branded�company�as�AgileAssets�in 2004in�1975�as�

TRDFin�1975�as�TRDF

1st Windows1st Windows

Added�Maintenance,�Bridges,�Equipment,�Buildings,�Spatial,�Safety�&�broader�

Added�Maintenance,�Bridges,�Equipment,�Buildings,�Spatial,�Safety�&�broader�

in�2004in�2004

Systems�integrated�in�2005�into�a�

ifi d I

Systems�integrated�in�2005�into�a�

ifi d I1 Windows�PMS

1 Windows�PMS

yAssets�Management�Systems�1995�� 2003

yAssets�Management�Systems�1995�� 2003

unified�Internet�based�asset�management�suite

unified�Internet�based�asset�management�suite

Practical Application of Asset Management Principles

Parana, BrazilJamaica Peru NigeriaIsrael

World BankGuyanaSaudi Aramco

Inter-AmericanDevelopment Bank

Trinidad & Tobago

Dubai, UAEQuebecTocantins, Brazil

Modular Framework

BridgeAnalyst

External Dataand Models

ExecutiveDecisions

PavementAnalyst Analyst

ExternalS t

Core AgileAssets FunctionsAsset InventoryB Li R f

Common Data Model

Data ManagementR ti

DecisionsAnalyst

MaintenanceSystems(e.g., SAP. Advantage,PeopleSoft, etc)

Base Linear ReferenceSecurityUser OrganizationTerminology

ReportingGraphingCommunicationsSystem Utilities

Manager

Fleet,Equipment,Materials,

Labor

GISNetworkManager

Safety Analyst

Mobile Apps

� Zero-Footprint, Web-based System� All Transportation Assets� Agency-specific models

� Integrated GIS Mapping Capabilities� Secure and scalable to thousands of users

5

� Agency-specific models� Integrated Asset & Maintenance

Management

� Easy-to-use with Sophisticated Analysis� Powerful reporting tools

Functional Areas

– Processes are identified by Functional Area• Asset Inventory Processes (AI)

– Asset Acquisition– Asset Condition Assessment– Linear Construction HistoryAI

A RM

LRLinear

Referencing Linear Construction History– Linear Attribute Data Management

• Planning Processes (PL)– Model Management– Analysis and Optimization– PlanningAgileAssets

AssetInventory

Processes

RMResource

Management

gProcesses

g• Operations Management (OP)

– Projects / Contracts / Repair Orders– Work Order Creation and Scheduling– Resource Usage and Accomplishment

RecordingR M t (RM)

AgileAssetsCore

PLPlanning

ProcessesOS

Org. Structure

System • Resource Management (RM)– Labor Management– Equipment Management– Materials Management

• Linear Referencing Processes (LR)LRS Management

OPOperations

Management

Syste

Security

Reporting

– LRS Management• Organizational Structure• System• Security• Reporting

• Highway is the primary “asset”– But there is more to the infrastructure

– Bridges, culverts, guardrails …

• What is needed? – Networking!– CentralizationCentralization

– Connectivity

– Communication– Communication

– Time (= money)

• Budget– Limited funds

– Maximizing benefits

• Holostic Approach

• Change / People• Change / People

Case Studies

GoalGoal

• Network optimization to

– Meet % deficiency target

– Maintain average condition index (CCI)Maintain average condition index (CCI)

– Cap reconstruction needs

P id h i “ ti ” ti iti• Provide emphasis on “preservation” activitiesto lower needs in the long term

• Reduce year to year fluctuation in case of multi-year optimizationmulti year optimization

SolutionSolution

Worked with AgileAssets Pavement Manager for better Decision Process in Optimization Analysis

Condition Condition Other Output projectConditionData

ConditionIndexes

OtherPavement Data

p p jconditions &

budgets

I t S lPredictionCondition

DecisionTreesModels Work

Plan

Integer SolverMulti-Constraint

/ Multi-Year Analysis

Section

y

StrategyGeneration

StrategiesEngine

BenefitsBenefits

• Able to justify increased funding for pavements in tough times due to:tough times due to:

– Clear, objective analysis

– Practical results– Practical results

• Centralized pavement management data

F li d l i d PMS d• Formalized analysis and PMS procedures

• Integrated pavement data with roadway network hchanges

• Results and analysis promoted executive support

• Field level buy in of the analysis results

Performance MeasuresPerformance Measures

Predictive AnalysisPredictive Analysis

Idaho Case Study

Why concentrate on Maintenance and Pavement First?y� No Formal Maintenance Management System for five (5) years� Internal Pavement System had no external credibility (“Black Box“)

What’s Next?

� Fleet Management� Fleet Management� Addressing their core Network, Network Manager

Coming Soon – Decision to have a single AMS!!Coming Soon – Decision to have a single AMS!!

GoalGoal

• To acquire an enterprise-wide operations• To acquire an enterprise wide operationsmanagement system for– Consolidating the entry and management of data g y g

and provide a daily reporting interface to allow entry of all pertinent data elements to properly track projectstrack projects

– Providing the ability to generate predefined and ad hoc reports for management

ChallengeChallenge

• Management of more than 27 000 miles of• Management of more than 27,000 miles ofhighways

Roughly 20 500 miles of secondary roads– Roughly 20,500 miles of secondary roads

– 3,600 miles of primary roads

M th 1 400 i t t t d k il– More than 1,400 interstate and parkway miles.

• Operate efficiently with a staff of 3,200

• Need for improvements in organizational development, efficiency, productivity and p , y, p ycost effectiveness

BenefitsBenefits

• Enhanced ability to make proactive decisions

• Data shared

P ojects defined b Pa ement Enginee s• Projects defined by Pavement Engineersadded to Maintenance Annual Plans

• Maximized availability, usage and cost effectiveness of resources

Asset�Management�in�Asset�Management�in�North�CarolinaNorth�Carolina

• Started with Maintenance• Added Pavement Analyst• Asset Management Took Hold, added Bridge and …

A t T d Off A l t H t th• Asset Trade Off Analyst – How to manage across thesometimes isolated and disparate SILOS!!

Bridges– 21,000 Bridges

C t L l f F di i i ffi i t– Current Level of Funding is insufficient– Network is Aging– A Bridge Management System can show the long-term trends

developing (as seen in most states)

Budgets

$60,000,000

$80,000,000

$100,000,000

$120,000,000

udget

$0

$20,000,000

$40,000,000

Bu

8

ing

Condition�Ratings

Year

100M/Years 30M/years

60M/Years Maintain�Deck�Condition�at�5.5

No Investment Maintain Deck Condition at 60

2

4

6

Deck�Con

ditio

n�Ra

tiNo�Investment Maintain�Deck�Condition�at�6 D

Year

100M/Years 30M/years

60M/Years Maintain�Deck�Condition�at�5.5/

No�Investment Maintain�Deck�Condition�at�6

9$70 000 000

Maintain�Deck�Rating�@�5.59$70,000,000

Maintain�Deck�Rating�@�6.0

5

6

7

8

9

$40,000,000

$50,000,000

$60,000,000

$70,000,000

tion�Ra

ting

gets

5

6

7

8

$40,000,000

$50,000,000

$60,000,000

, ,

dtion�Ra

ting

dgets

1

2

3

4

5

$0

$10,000,000

$20,000,000

$30,000,000

Deck�Con

dt

Bud

1

2

3

4

$0

$10,000,000

$20,000,000

$30,000,000

Deck�Con

d

Bud

$

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Budget Condition

1$0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Budget Condition

DefinitionsDefinitions

• FHWA Asset ManagementDefinition

• Loosely defined as:

“Asset Performance Management over an gextended time horizon” – Charles P Source: FHWA Office of Asset Management

©AgileAssets Inc.

DefinitionsDefinitions

Performance Management of the Federal Highway Program is a s stematic approach to making in estment and strategic decisionssystematic approach to making investment and strategic decisionsusing information about the condition and performance of the system and developing an approach to achieve a desired set of national goalsnational goals

28

Source: Slide from Peter StephanosFederal Highway Administration

OutlineOutline

• All over the map!Finance

• Top down

Budget

Departments

Legislature

BudgetPrep

Trade

VisualizationAssettypes

Trade-off What-ifCost vs

PerformanceRisk

Utility

Strategies

ProblemEconomies of

RiskOptimization Efficient

Frontiers

©AgileAssets Inc.

FormulationEconomies ofscale

Where we are nowWhere we are nowWhere we are now…Where we are now…

©AgileAssets Inc.

Budget Prep.Budget Prep.

• It’s always about the money!• Budget Prep

– Multiple objectives…– Performance

• Safety• LivabilityLivability• Sustainabilty• Reliability

Environment• Environment

– Cost

©AgileAssets Inc.

e

Budget Prep.Budget Prep.

Legi

slat

ure

• ProcessC i f f d

Review and Enact Budget

• Competing for funds• Have to make a good

case

DO

A/

Gov

erno

r DOA Adjustment

Governor’s Signature/Veto

case

quar

ters

Budget OfficeChief

DO

T H

eadq Budget Office

Prepare Capital and Operating Budget

ChiefEngineer’s

Office

Allocation of Funds

Sect

ions

DevelopBridgeNeeds

Dis

tric

ts/S

©AgileAssets Inc.

CapitalNeeds

pSpending

PlanOperating

Needs

Needs

PavementNeeds

TradeoffTradeoff

• So what’s the Tradeoff– Between Operating Budget vs Capital Budget– Between departments

B t t t– Between asset types– Between Multiple Objectives…

Preservation of Ride Quality Pvts Asset Type

PvtsActivity/Repair/Treatment

Objective

©AgileAssets Inc.

Capacity(LOS)

TradeoffTradeoff

Road Sub-Network Utility

Safety Congestion Comfort Aesthetics

Driver Information

Roll Over Prevention

Skidding and Hydroplaning

No of lanes

LitteGrassPvt RuttingPvt Skid Sign GuardrailLow Sign Pvt

Bridge Structural

Soundness

©AgileAssets Inc.

rHeight

ResistanceVisibility ConditionShoulderDamage Roughness

Pvt Macro-texture

Pvt Micro-texture

Pvt Cracking

TradeoffTradeoff

• In general Guard-

Retain out-of-controlvehicles

this means the

rail

Signs

ROWRegulatory

following…BridgesMaintenanceBridgeDivision

Warning

Guide

P t

DitchesEtc.

Pvt. Ride Quality

Capacity (LOS)

Objectives:Mosquitoes

Preservation of Ride Quality

Pvts Capacity (LOS)

Warning Sign Info.

Retain out-of-controlvehiclesPMUCapacity

(LOS)

©AgileAssets Inc.

vehicles(LOS)

Planning,Construction, etc.

TradeoffTradeoff

Guard-• Aggregate

bj irail

Signs

ROW objectivecriteria(indices)

BridgesMaintenanceBridgeDivision

(indices)…

P t

DitchesEtc.

Signs, Guardrail, etc.

Pavements

Objectives:

Pvts Pavements

BridgesPMU

©AgileAssets Inc.

TradeoffTradeoff

Guard-• Move initial

P l irail

Signs

ROW Pvts planningunder PMU

BridgesMaintenanceBridgeDivision

DitchesEtc.

Signs, Guardrail, etc.

Pavements

Objectives:

Pvts

Pavements

Bridges

PMU

©AgileAssets Inc.

PMU

TradeoffTradeoff

Guard-• How high can

!rail

Signs

ROW we go!

BridgesNetworkAsset Management

DitchesEtc.

Network

Objectives:

Pvts

©AgileAssets Inc.

TradeoffTradeoff

• So how do we analyze the tradeoffs?• Visualization

• ‘What if’ scenarios across multiple objectives

• Optimization Tools• Analysis of a huge solution space of

t t d ‘Wh t if’ ticomputer generated ‘What if’ options• Generate Efficient Frontiers

• Utility• Utility• If you can measure it, you can

manage it

©AgileAssets Inc.

• How much is each option worth?• Apples with apples• How to incorporate Risk Source: http://vis.lbl.gov/Vignettes/

TradeoffTradeoff

• Super-Strategies (NC example)

©AgileAssets Inc.

TradeoffTradeoff

• Performance Modeling• Have to be able to calculate the values

of all the objective criteria for each option

• Strategies• Strategies• Network Strategies (options)• Project level Strategies (options) Project Strategy

Asset Type Network Strategy

Condition

TimeAsset Type Project StrategyProject Strategy

ConditionCondition

TimeProject Strategy

©AgileAssets Inc.

TimeCondition

Time

j gy

TradeoffTradeoff

• Strategies• Network Super-Strategies (options)

Pavement NetworkStrategy

Overall Network Super-StrategyCondition

Time

Project Strategy

Project StrategyB id N t k St t Pavement Network Strategy

Condition

Time

Condition

Project StrategyCondition

Project Strategy

Bridge Network Strategy

Time

Project Strategy

gy

Project Strategy Bridge Network Strategy

Time

Time

Condition

Time

Project Strategy

Project Strategy

Time

Time

Project Strategy

Time

Project Strategy

Time

Project Strategy

©AgileAssets Inc.

Condition

TimeTime

Project Strategy

TradeoffTradeoff

• So a whole Super-Strategy is condensed to a ‘little green dot’!

Overall Network Super-Strategy

Pavement Network Strategy

Time

Project Strategy

gy

Project Strategy Bridge Network Strategy

Time

Time

Project Strategy

Time

Project Strategy

Time

Project Strategy

©AgileAssets Inc.

Time

Project Strategy

TradeoffTradeoff

• So where do the candidate projects come from?

• The current process is:p

PavementManagement

PavementManagementManagement

SystemManagement

System

BridgeBridge TradeoffTradeoffManagement System

Management System

MaintenanceMaintenance

TradeoffAnalysisTradeoffAnalysis

©AgileAssets Inc.

MaintenanceManagement

System


System

Individual AMSsIndividual AMSs

• PMS• Bridge• MaintenanceMaintenance• Safety

• Each individual area contributes multiple optimized budget plans to cover a range of possible funding scenarios…

©AgileAssets Inc.


• These individual optimizations utilize the benefits of being integrated in the same database:– Same LRS– Same Asset structures and optimization

engines, etc.– All data available for high level budget prep

asset trade-off• But individual optimizations are carried out

by separate groups/departments©AgileAssets Inc.


• Each individual group generates and submits multiple plans – typically forming their own efficient frontier…

©AgileAssets Inc.


• This is a fairly good system…• Where do we go from here?

PavementManagement

PavementManagementManagement

SystemManagement

System

BridgeBridge TradeoffTradeoffManagement System

Management System

MaintenanceMaintenance

TradeoffAnalysisTradeoffAnalysis

©AgileAssets Inc.


System


System

Integrating BudgetsIntegrating Budgets

• As noted at the beginning, one area of interest is fostering ‘department integration’. This is working in NC.

• For instance PMS and BMS are planning work to be done byy– Maintenance and– ConstructionConstruction

• “Integration of preservation activities”• Integration of preservation activities©AgileAssets Inc.

Integrating BudgetsIntegrating Budgets

• One group that is seldom fully integrated with PMS is Planning

• Ideally, at least congestion needs to be y, gpart of the PMS analysis

• Again, the tools are availableand this is largely anand this is largely anorganization thing.

©AgileAssets Inc.

Project Level InteractionProject Level Interaction

• Currently accounting for high level interaction b bj i (i ili f i )between objectives (in utility functions)

• Can also analyze for individual routes, corridors tetc.

• However, at project level, current interdependencies are handled after choice of super scenariosuper scenario

• Ideally utility should be calculated in the context of interaction between projectsof interaction between projects

©AgileAssets Inc.

Project Level InteractionProject Level Interaction

• We are currently assuming project i d dindependence

• In fact, a widened bridge is no good without a id d dwidened road

• Another example is grouping of small PMS project sectionsproject sections

Id ll j t h ld b bl t b bi d• Ideally projects should be able to be combinedbased on:

Combined Utility and– Combined Utility, and– Economies of scale

©AgileAssets Inc.

FormulationFormulation

• Problem Formulation is a big problem!

• Currently our optimization tools are soCurrently our optimization tools are sopowerful in terms of the questions we can answer we need learn howanswer, we need learn howto ask the questions better!

©AgileAssets Inc.


• For instance, a common formulation used by clients in PMS is:– Minimize: cost – Subject to: a minimum % of pavement in

Good or Fair condition

• Turns out this is not a good formulation!

©AgileAssets Inc.


• Another problem formulation example is in modeling of preservation treatments

• Many clients use decision trees extensively• But only employ rudimentary models for the• But only employ rudimentary models for the

effects of preservation treatments

Condition Condition

©AgileAssets Inc.

Time Time


• What is needed is to tie the restoration models for preservation treatments to the current deterioration state and rate

• And across distresses…

Condition Condition

©AgileAssets Inc.

Time Time

ConclusionConclusion

• Have some great tools in place for integrated Asset Management

• Many improvements still needed in tools

• But also need to mature– Organizationally– and in the use of the tools

©AgileAssets Inc.

functional asset management - engineering in practice for a

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