making asset management work for you.ppt
TRANSCRIPT
Making Asset Management Making Asset Management Work for YouWork for You
Dianne B. MillsDianne B. MillsD. Michael Rotunno, P.E.D. Michael Rotunno, P.E.Stanley V. Plante, P.E.Stanley V. Plante, P.E.
November 2002November 2002
Asset Management, CMOM, and GASB Asset Management, CMOM, and GASB 34 Are All Intended to Focus on Long 34 Are All Intended to Focus on Long Term Utility Management Term Utility Management
Asset Management
Asset Management
Minimize the life cycle cost of an asset or group of assets
Minimize the life cycle cost of an asset or group of assets
CMOMCMOM Properly maintain assets to maximize use of designed/intended capacity
Properly maintain assets to maximize use of designed/intended capacity
GASB 34GASB 34Reflect the “full cost” of providing a government service and show that ratepayers are getting what they paid for
Reflect the “full cost” of providing a government service and show that ratepayers are getting what they paid for
Who Is Governmental Accounting Who Is Governmental Accounting Standards Board (GASB)? Standards Board (GASB)?
Non-governmental agency Non-governmental agency
Issues financial guidelines for all Issues financial guidelines for all governmental agenciesgovernmental agencies
GASB 34 GASB 34
Statement issued by GASB which redefines Statement issued by GASB which redefines financial reporting for public agenciesfinancial reporting for public agencies
Not a law, though non-compliance may affect Not a law, though non-compliance may affect acceptance of financial statements and ability acceptance of financial statements and ability to obtain grants and/or loans from to obtain grants and/or loans from state/federal agencies state/federal agencies
What Does GASB 34 Require?What Does GASB 34 Require?
Redefines how municipalities present financial Redefines how municipalities present financial positionposition
Governmental units should report capital assets, Governmental units should report capital assets, by one of these methods by one of these methods
Depreciated value of capital and infrastructure Depreciated value of capital and infrastructure assets of all government propertyassets of all government property
Adopt “modified approach,” which involves asset Adopt “modified approach,” which involves asset managementmanagement
GASB 34 Modified ApproachGASB 34 Modified Approach
Asset management plan or processAsset management plan or process Inventory and assess current asset conditionInventory and assess current asset condition Estimate funds needed to maintain at a Estimate funds needed to maintain at a
condition level set and disclosed by the condition level set and disclosed by the government agencygovernment agency
Assess condition of assets at least every 3 Assess condition of assets at least every 3 yearsyears
Report whether assets are being preserved at Report whether assets are being preserved at or above the condition level setor above the condition level set
GASB 34 Timetable for Compliance GASB 34 Timetable for Compliance
RevenuePhase
CategoryImplement in
FY after
$100 Million + 1 June 15, 2001
> $100 Million and
< $100 Million
< 10 Million 3 June 15, 2003
$100 Million + 1 June 15, 2005
> $10 Million and
< $100 Million
< $10 Million 3 Exempt
2 June 15, 2002
For historical assets acquired, received after June 15, 1980
2 June 15, 2006
What is Asset Management?What is Asset Management?
Asset Management is a process for providing the public with a cost-
effective level of service through the creation, acquisition, maintenance,
operation, rehabilitation and disposal of assets for existing and
future customers
Asset Management is a process for providing the public with a cost-
effective level of service through the creation, acquisition, maintenance,
operation, rehabilitation and disposal of assets for existing and
future customers
Why is Asset Management Important Why is Asset Management Important Now?Now?
Regulatory drivers require a longer term view Regulatory drivers require a longer term view and better knowledge of conditions of your and better knowledge of conditions of your systemssystems
More meaningful financial reportingMore meaningful financial reporting Aging infrastructure system Aging infrastructure system Pressure of privatization and competitionPressure of privatization and competition Evolving Management KnowledgeEvolving Management Knowledge
Utilities Are Often Forced to Take Utilities Are Often Forced to Take Short-term ViewShort-term View
Significant effort in creating new assets, but Significant effort in creating new assets, but notnot properly maintaining existing assets properly maintaining existing assets
Maintenance deferred because:Maintenance deferred because:
Pressure to keep rates lowPressure to keep rates low
Other increased costs of doing businessOther increased costs of doing business
Competing priorities / other projectsCompeting priorities / other projects
Maintenance problems often are “invisible” to Maintenance problems often are “invisible” to decision makers until something bad happensdecision makers until something bad happens
Asset Management Makes Good Asset Management Makes Good Business SenseBusiness Sense
Clearly documented strategy for managing Clearly documented strategy for managing utility assets from design to disposal at end of utility assets from design to disposal at end of useful lifeuseful life
Repeatable and verifiable methods and Repeatable and verifiable methods and measurement of asset conditionmeasurement of asset condition
Minimize life-cycle costsMinimize life-cycle costs Clearly calculated levels of asset service, Clearly calculated levels of asset service,
reliability and long term funding requirementsreliability and long term funding requirements Creates long-term capital funding programCreates long-term capital funding program
Accurate and concise asset information to Accurate and concise asset information to support strategic decision-makingsupport strategic decision-making
Provides reliable needs assessment for federal Provides reliable needs assessment for federal assistanceassistance
Provides fact based analysis to document funding Provides fact based analysis to document funding needsneeds
System managers and other stakeholdersSystem managers and other stakeholders
Government officialsGovernment officials
Grant agenciesGrant agencies
Asset Management Makes Good Asset Management Makes Good Business Sense (continued)Business Sense (continued)
Asset Management Common Asset Management Common MisconceptionsMisconceptions
It is a computer systemIt is a computer system
It is an accounting systemIt is an accounting system
It is required by EPA or federal governmentIt is required by EPA or federal government
It is an automated processIt is an automated process
It is mandated to comply with GASB 34It is mandated to comply with GASB 34
The Asset Management ProcessThe Asset Management Process
Customer Expectations
•Level of Service•Cost
Legislative Requirements
•Financial•Environmental
Customer Expectations
•Level of Service•Cost
Legislative Requirements
•Financial•Environmental
Strategic Planning
Tactical Planning
Operational Planning
Strategic Planning
Tactical Planning
Operational Planning
Strategic Planning Process Strategic Planning Process
Service Level Review Process Service Level Review Process
Asset Management Process Asset Management Process
Consider Asset Solutions
•Maintain/renew/upgrade/dispose of existing assets•Create new assets
Consider Asset Solutions
•Maintain/renew/upgrade/dispose of existing assets•Create new assets
Consider Non-Asset Solutions
•Failure management•Insurance•Demand management
Consider Non-Asset Solutions
•Failure management•Insurance•Demand management
Implement Asset Management SolutionsImplement Asset Management Solutions
The Asset Management TeamThe Asset Management Team
Cross Functional
Key Players
Job
Goal
All stakeholders should be represented
Planning, engineering, O&M, finance, and IT
Formulate implementation plan
Thorough, consistent program across the agency
Implementation PlanImplementation Plan
Lay out objectives, levels of detail, “to-do” Lay out objectives, levels of detail, “to-do” lists for the overall programlists for the overall program
Assign responsibilities to each group of the Assign responsibilities to each group of the team team
Assess current data resourcesAssess current data resources Establish a plan to oversee implementationEstablish a plan to oversee implementation Entire system doesn’t have to be done Entire system doesn’t have to be done
simultaneouslysimultaneously
Consider phased approach of most critical Consider phased approach of most critical systems first systems first
Objectives of the Asset Management Objectives of the Asset Management ProcessProcess
What are your assets, where are they, what What are your assets, where are they, what condition are they incondition are they in
More planned less unplanned maintenanceMore planned less unplanned maintenance Have and maintain a rational long-term plan for Have and maintain a rational long-term plan for
replacement and refurbishmentreplacement and refurbishment Demonstrate a technical and financial Demonstrate a technical and financial
commitment to long-term integrity and commitment to long-term integrity and improvement of your infrastructureimprovement of your infrastructure
Define Difference Between O&M, Define Difference Between O&M, Maintenance and R&R Maintenance and R&R
Operating costs Operating costs
Operating facilities, e.g., energy costs, Operating facilities, e.g., energy costs, consumables, operations related labor, etc.consumables, operations related labor, etc.
No effect on asset except to operate assetNo effect on asset except to operate asset
Maintenance costsMaintenance costs
Ongoing day-to-day work required to keep Ongoing day-to-day work required to keep assets operating at required service levelsassets operating at required service levels
Non-capitalized maintenance work orders Non-capitalized maintenance work orders including inspections, service, repairs, etc.including inspections, service, repairs, etc.
Asset Rehabilitation & ReplacementAsset Rehabilitation & Replacement
When should an asset be rehabilitated or When should an asset be rehabilitated or replaced based on its remaining useful life cost replaced based on its remaining useful life cost analysisanalysis
Initially use manufacturers recommendations Initially use manufacturers recommendations Update to reflect condition assessments and Update to reflect condition assessments and
maintenance history maintenance history Asset history is used to update entire asset Asset history is used to update entire asset
management processmanagement process
The Asset Management ProcessThe Asset Management Process
One of the core requirements of a sound asset management system is to identify and track assets
throughout their lifecycles
One of the core requirements of a sound asset management system is to identify and track assets
throughout their lifecycles
Study and ReportFund
ImplementationPlan
Design and Build Retire
MaintainOperate
Inventoryand OtherAsset Data
Basic Steps to Asset ManagementBasic Steps to Asset Management
Inventory assets and rate conditionInventory assets and rate condition Group and classify assetsGroup and classify assets Establish asset criticality and level of service Establish asset criticality and level of service
standardsstandards Track costs to asset levelTrack costs to asset level Assign maintenance schedules to assetsAssign maintenance schedules to assets Perform condition monitoringPerform condition monitoring Analyze data to optimize reliability and costsAnalyze data to optimize reliability and costs
Inventory Assets and Rate Condition Inventory Assets and Rate Condition
Develop a complete Develop a complete inventory of assets and inventory of assets and assess conditionsassess conditions
Condition assessments Condition assessments should be made by should be made by qualified staff based on qualified staff based on established standardsestablished standards
Develop criteria for what Develop criteria for what will have an individual will have an individual asset numberasset number
Condition Rating Observation
1 Poor. Deteriorating, structure failing2 Bad. Stable, but significant evidence of inflow or other issues3 Fair. Some evidence of inflow, but in good condition4 Good. Very minor cracks or evidence of inflow5 Excellent. Almost like new
Condition Rating Observation
1 Poor. Deteriorating, structure failing2 Bad. Stable, but significant evidence of inflow or other issues3 Fair. Some evidence of inflow, but in good condition4 Good. Very minor cracks or evidence of inflow5 Excellent. Almost like new
Inventory Assets and Rate ConditionInventory Assets and Rate Condition
Inventory requires Inventory requires record searches, record searches, field data acquisition field data acquisition and software to store and software to store and organize and organize collected datacollected data
Condition Condition assessment must be assessment must be on-going, and could on-going, and could be incorporated into be incorporated into regular maintenanceregular maintenance
Group and Classify AssetsGroup and Classify Assets
An asset inventory is a database of assets An asset inventory is a database of assets organized such that it’s understandable, organized such that it’s understandable, maintainable and quantifiablemaintainable and quantifiable
Don’t build too many layers Don’t build too many layers Keep asset levels to understood naming Keep asset levels to understood naming
standardsstandards If available use GIS database standards for If available use GIS database standards for
spatial assets and infrastructurespatial assets and infrastructure Use numbering systems to identify location Use numbering systems to identify location
and classification by type, but be easy to and classification by type, but be easy to understandunderstand
Group and Classify AssetsGroup and Classify Assets Group and classify assets into Group and classify assets into
hierarchieshierarchies Process (plant) assetsProcess (plant) assets
– Subsystems of pipes, controls, Subsystems of pipes, controls, instruments instruments
Infrastructure assetsInfrastructure assets
– Pipelines, wells, pumping stationsPipelines, wells, pumping stations Building assetsBuilding assets
– Aggregation of componentsAggregation of components Site assetsSite assets
– Parking lots, fences Parking lots, fences
Group and Classify AssetsGroup and Classify Assets
Equipment & furnishingsEquipment & furnishings Vehicles, trailers, office equipment and Vehicles, trailers, office equipment and
furniture, storage fixtures, portable furniture, storage fixtures, portable equipment equipment
Equipment categories matched with Equipment categories matched with fixed asset management component of fixed asset management component of FISFIS
Movable equipment individually Movable equipment individually tagged for property tagged for property management purposesmanagement purposes
Group and Classify AssetsGroup and Classify Assets
Process (Plant) Asset Process (Plant) Asset –– Example Hierarchy Example Hierarchy
AWTPAWTP FacilityFacility
RPRP Process unitProcess unit
Pump 1 SystemPump 1 System System (group)System (group)
PumpPump Equipment (parent)Equipment (parent)
ValveValve Component (child)Component (child)
Group and Classify AssetsGroup and Classify Assets
Example Asset TagExample Asset Tag
Facility Facility AWTPAWTP
Process Unit Process Unit RPRP
System / ServiceSystem / Service PS1PS1
Component ID Component ID PMPPMP
BuildingBuilding RPS RPS
Location / Area B1Location / Area B1
Sequence NumberSequence Number 0101
Group and Classify AssetsGroup and Classify Assets
There are many commercial software products that There are many commercial software products that store, manage and report on asset inventoriesstore, manage and report on asset inventories
Establish Asset Criticality Establish Asset Criticality
Defined level of serviceDefined level of service Determine what assets are mandatory to Determine what assets are mandatory to
meet the level of servicemeet the level of service Value of asset Value of asset Current condition assessmentCurrent condition assessment Remaining service lifeRemaining service life
Track Costs to Asset LevelTrack Costs to Asset Level
Use equipment register to more quickly find Use equipment register to more quickly find individual asset recordsindividual asset records
Create work orders against the equipment Create work orders against the equipment register records to track costs to the asset register records to track costs to the asset levellevel
Integrate with other business systems to pull Integrate with other business systems to pull together cost information from Payroll, together cost information from Payroll, Accounting, CMMS, and InventoryAccounting, CMMS, and Inventory
Track Costs to Asset LevelTrack Costs to Asset Level
Pay to$
Payroll
Inventory
Motorpool
Work Order
Asset Tag AWTP-RP-PS1-PMP-01
Work Order No. AW1289
Standard Job No. RP007
PM Task No. 9100
Labor Cost $3,200.00
Material Cost $1289.00
Equipment Cost $240.00
AssetRegister
CMMS
Document No. DWG-AWTP-CIP-234/400
IDC
Document Manangement
Assign Maintenance Schedules to Assign Maintenance Schedules to AssetsAssets
Standard Job No Standard Job Description Work Group
Labor Class 1
Type
Labor Class 1 Hours PM No.
Suppression (Y/N) Equipment1
Schedule Freq
(Days)Last Perf
DateCWPO02 GENERAL OVERHAUL OF PUMP CRMACH 5808 60 9100 Y CRFWH1PUMP00001 1460 5/5/2002CWPO02 GENERAL OVERHAUL OF PUMP CRMACH 5808 60 9100 Y CRFWH2PUMP00002 1095 9/18/2000
CR002FLOC / SED INSPECTION, MAINT, AND REPAIR CRMACH 5808 16 9200 Y CRFCFCFLOC00001 365 7/30/2002
CR002FLOC / SED INSPECTION, MAINT, AND REPAIR CRMACH 5808 16 9200 Y CRFCFCFLOC00002 365 7/30/2002
CR006 SLUDGE PRESS OIL AND FILTER CRMACH 5808 8 7000 N CRSHSP SLUDGE PRESS SYSTEM 735 9/16/2002CR006 SLUDGE PRESS OIL AND FILTER CRMACH 5808 8 7001 N CRSHSP SLUDGE PRESS SYSTEM 735 9/16/2002CR007 FILTER SWEEP MAINTENANCE CRMACH 5808 4 6000 N CRFL01FILT00001 730 8/4/2002CWPO01 VALVE EXERCISING AND TIMING CRMACH 5808 80 5000 N CRYV CROWN YARD VALVES 365 5/5/2002CR008 OIL AND LUBRICATION SERVICE CRMACH 5808 4 9150 Y CRSHWBGERD00008 183 9/18/2000CWPO03 OIL AND LUBRICATION SERVICE CRMACH 5808 4 9250 Y CRSHGTGERD00002 183 9/18/2000
CR008HVAC INSPECTION AND MAINTENANCE CRMACH 5808 16 6001 N CRBG CROWN BUILDINGS/GROUNDS 183 9/18/2000
CR008 FLOCCULATOR SPEED CRMACH 5808 8 6002 N CRFC CROWN FLOCCULATION 90 11/11/2002
Condition MonitoringCondition Monitoring
Helps to determine if the asset should be Helps to determine if the asset should be replaced or repairedreplaced or repaired
Helps determine optimal types and Helps determine optimal types and frequencies of preventive maintenancefrequencies of preventive maintenance
Provides early warning of asset deterioration Provides early warning of asset deterioration and prediction of equipment failureand prediction of equipment failure
Determine how each asset deteriorates or Determine how each asset deteriorates or fails, what to monitor, how often to monitor, fails, what to monitor, how often to monitor, and what the key decision points for and what the key decision points for refurbishment or replacementrefurbishment or replacement
Condition MonitoringCondition Monitoring
Oil Analysis - Iron
0
10
20
30
40
50
60
70
80
90
Date
Pa
rtic
les
Alarm 1: Change Oil
Alarm 2: Major Service
Warning
High
The Asset Management Process The Asset Management Process Includes Periodic Reviews Includes Periodic Reviews
Asset-related costs are being reduced as Asset-related costs are being reduced as anticipatedanticipated
Required service levels are being metRequired service levels are being met
Asset-related procedures are being conducted Asset-related procedures are being conducted as plannedas planned
Asset plans are being properly updated and Asset plans are being properly updated and improvedimproved
On findings from these reviews, the process On findings from these reviews, the process and Implementation Plan will be updatedand Implementation Plan will be updated
Asset Management Pays OffAsset Management Pays Off
DON”T FIXIT
FIX ITAFTERBREAK
FIX ITBEFOREBREAKS
REPLACEBEFORE IT
COSTSMORE TO
FIX KNOW YOU HAVETO REPLACE IT IN
ADVANCE ANDPLAN
Mai
nten
anc
e/R
epla
cem
ent C
ost
s
Commitment to Asset Management
Rules to RememberRules to Remember
Establish condition standards by asset Establish condition standards by asset classification classification
Develop consistent evaluation criteriaDevelop consistent evaluation criteria Establish simple methods of measurementEstablish simple methods of measurement Begin by inspecting the most critical assets firstBegin by inspecting the most critical assets first Set reasonable frequencies to update condition Set reasonable frequencies to update condition
ratingrating
Tools for Asset Management: GISTools for Asset Management: GIS
Map/maintain/report on existing assetsMap/maintain/report on existing assets
Identify suitable alignmentsIdentify suitable alignments
Identify conflictsIdentify conflicts
Notify citizensNotify citizens
Locate complaintsLocate complaints
Integrate data from other systemsIntegrate data from other systems
GIS TipGIS Tip Spatial accuracy isn’t all it’s cracked up to beSpatial accuracy isn’t all it’s cracked up to be
Development costs increase with accuracyDevelopment costs increase with accuracy
Maintenance costs increase with accuracyMaintenance costs increase with accuracy
Integration opportunities remain about the Integration opportunities remain about the samesame
Low Medium High
Spatial Accuracy
Development cost
Maintenance cost
Integration opportunities
Tools for Asset Management: CMMSTools for Asset Management: CMMS
Asset-based trackingAsset-based tracking
Improve response timesImprove response times
Increase ratio of proactive to reactive Increase ratio of proactive to reactive maintenancemaintenance
Integrate with purchasing, financial, other Integrate with purchasing, financial, other systemssystems
CMMS TipsCMMS Tips
Many CMMS vendors provide an excellent Many CMMS vendors provide an excellent solution for plant-side solution for plant-side oror street-side assets, but street-side assets, but most systems do not handle both wellmost systems do not handle both well
Beware the CMMS vendor cross-selling from a Beware the CMMS vendor cross-selling from a similar industrysimilar industry
Involve the end users – Involve the end users – probably more important probably more important than any other utility information system than any other utility information system implementationimplementation
Tools for Asset Management: SCADATools for Asset Management: SCADA
Monitor major assetsMonitor major assets
Monitor system operationMonitor system operation
Remotely control operationsRemotely control operations
Flag problems quicklyFlag problems quickly
Send run time/other data to CMMSSend run time/other data to CMMS
SCADA TipsSCADA Tips
Keep it simple – Keep it simple – implement systems operations implement systems operations staff can use with minimal trainingstaff can use with minimal training
SCADA systems are quite scalable – SCADA systems are quite scalable – plan for the plan for the entire system, but don’t worry about building entire system, but don’t worry about building everything at onceeverything at once
Open systems reduce costs, create competition Open systems reduce costs, create competition for training and support services, and simplify for training and support services, and simplify future expansionsfuture expansions
Tools for Asset Management: ModelsTools for Asset Management: Models
What-if? planningWhat-if? planning
What-if? operations (including asset criticality)What-if? operations (including asset criticality)
Capacity maintenance (CMOM)Capacity maintenance (CMOM)
Long-range (strategic) planning supportLong-range (strategic) planning support
Model TipsModel Tips
Ease of use ranges significantly from package to Ease of use ranges significantly from package to package – package – know your application needs and staff know your application needs and staff availabilityavailability
It’s usually easy to move data from GIS to models It’s usually easy to move data from GIS to models – – the reverse may not bethe reverse may not be
More Asset Management System More Asset Management System ComponentsComponents
Customer Information (CIS)Customer Information (CIS)
Document ManagementDocument Management
Purchasing/Financial SystemsPurchasing/Financial Systems
Inventory ManagementInventory Management
On-line O&M ManualsOn-line O&M Manuals
Strategic PlanningStrategic Planning
Change ManagementChange Management
Additional OpportunitiesAdditional Opportunities
Doing all of this work to collect and manage Doing all of this work to collect and manage information on assets can result in huge side-information on assets can result in huge side-benefits – with a small additional investment benefits – with a small additional investment organizations can:organizations can:
Provide point-and-click information retrieval Provide point-and-click information retrieval on individual assetson individual assets
Link record drawings and other relevant Link record drawings and other relevant documents directly to assets or other map documents directly to assets or other map featuresfeatures
Share these capabilities throughout the Share these capabilities throughout the organizationorganization
Integration Tips – GISIntegration Tips – GIS Most users, regardless of their role in the Most users, regardless of their role in the
organization, understand geography – organization, understand geography – GIS GIS provides an intuitive interface to retrieve asset provides an intuitive interface to retrieve asset informationinformation
Integration Tips – GISIntegration Tips – GIS When it comes to integration, GIS need not be When it comes to integration, GIS need not be
limited to street-side featureslimited to street-side features
Integration Tips - WebIntegration Tips - Web Use the web to deliver asset information through Use the web to deliver asset information through
maps – maps – can reduce costs and increase user basecan reduce costs and increase user base
Typically lower training costsTypically lower training costs
Typically lower licensing costsTypically lower licensing costs
Move GIS from a back-room techie function to a Move GIS from a back-room techie function to a tool for the massestool for the masses
Integration Tips - CentralizationIntegration Tips - Centralization Manage spatial data and applications centrally – Manage spatial data and applications centrally –
eliminate duplicate map and data maintenance eliminate duplicate map and data maintenance functionsfunctions
Manage departmental applications locally – Manage departmental applications locally – it it may be trivial to link to existing systems, don’t may be trivial to link to existing systems, don’t replace systems that workreplace systems that work
Centralized Spatial Data
and Web Applications
CMMS ModelsSCADACIS, FIS
Management Operations Finance Planning
Engineering
Integration Tips – Data FilteringIntegration Tips – Data Filtering
IT
Customer Accounts
1996 1997 1998 1999 2000 2001
Residential $131,150 $137,708 $144,593 $151,823 $159,414 $167,384Single Family $106,400 $111,720 $117,306 $123,171 $129,330 $135,796
Multi-Family $24,750 $25,988 $27,287 $28,651 $30,084 $31,588
Commercial (Offices $27,882 $29,276 $30,740 $32,277 $33,891 $35,585Motels, Restaurants, etc.)
Institutional $6,300 $6,615 $6,946 $7,293 $7,658 $8,041
Industrial (Manufacturing)$10,700 $11,235 $11,797 $12,387 $13,006 $13,656
Miscellaneous $2,768 $2,906 $3,052 $3,204 $3,365 $3,533
TOTAL $178,800 $187,740 $197,127 $206,983 $217,333 $228,199
Allocation of Revenue Requirement Residential 0.73 0.73 0.73 0.73 0.73 0.73 Commercial 0.16 0.16 0.16 0.16 0.16 0.16 Industrial 0.06 0.06 0.06 0.06 0.06 0.06 Institutional 0.04 0.04 0.04 0.04 0.04 0.04 Misc. 0.02 0.02 0.02 0.02 0.02 0.02
Total 1 1 1 1 1 1
$0
$50,000
$100,000
$150,000
$200,000
$250,000
1996 1997 1998 1999 2000 2001
Year
Revenue Projections
Other
Industrial
Institutional
Commercial
Multi-family
Single Family
Adapted from International Infrastructure Management Manual, Institute of Public Works Engineering, Australia
Asset Aging Analysis Sheds Light on Annual O&M, R&R Projections
Use of Historical Maintenance Cost and Predictions From Asset Management Reports Yields Defensible Budgets
The Importance of Change ManagementThe Importance of Change Management
It’s not enough to just dump new processes and It’s not enough to just dump new processes and systems on an organization – systems on an organization – changes to asset changes to asset management practices require organizational management practices require organizational development and/or change managementdevelopment and/or change management
IT Projects
Fear
Details?Support?
Confusion
++ ==
NewTechnicalSystems
“Old”People
Systems Results
++ ==
NewTechnicalSystems
NewPeople
Systems
Results
Technology and PeopleTechnology and PeopleTechnology and PeopleTechnology and People
Balance technology on people and processesBalance technology on people and processes
People Process
Technology
Key: I nterdepartmental communication
Work request fl ow
WorkRequirementNotifi cation
Unplanned Activity (Reactive)
Requests Received f romDispatchOperationsMaintenance
I nvestigationWork
Required?
Notif y RequestorWork not to be
Perf ormed
No
Notif y RequestorWork to bePerf ormed
WorkRequest
Established
Yes
Planned Activity (Reactive or Proactive)
Set Priority(Due Date)
Review byWMS Planner
Entered intoWMS
Notif y Requestorof WorkSpecifi cs
Work OrderGeneration
WhoWill
Perf orm?
ContractServices
WMSPlanner
Contractor
Division
AddResources?
Assign,Execute,
Close
Notif y RequestorWork is
Complete
No
Obtain Parts orOther Resources
Yes
People Process
Technology
Key: I nterdepartmental communication
Work request flow
WorkRequirementNotification
Unplanned Activity (Reactive)
Requests Received f romDispatchOperationsMaintenance
I nvestigation WorkRequired?
Notif y RequestorWork not to be
Performed
No
Notif y RequestorWork to bePerformed
WorkRequest
Established
Yes
Planned Activity (Reactive or Proactive)
Set Priority(Due Date)
Review byWMS Planner
Entered intoWMS
Notif y Requestorof WorkSpecifics
Work OrderGeneration
WhoWill
Perform?
ContractServices
WMSPlanner
Contractor
Division
AddResources?
Assign,Execute,
Close
Notif y RequestorWork isComplete
No
Obtain Parts orOther Resources
Yes
Technology and PeopleTechnology and PeopleTechnology and PeopleTechnology and People
SummarySummary
Asset management is a strategic process, Asset management is a strategic process, not just a technical solutionnot just a technical solution
An asset management program is an on-An asset management program is an on-going way of doing business, not a one-time going way of doing business, not a one-time projectproject
Creation of an asset management program Creation of an asset management program requires input from different competencies requires input from different competencies from within your organization from within your organization
Integration of data from key business units Integration of data from key business units is critical to creating an asset management is critical to creating an asset management strategy and programstrategy and program
SummarySummary
The asset management process can be The asset management process can be supported by and supply data to many supported by and supply data to many information systemsinformation systems
The steps required to develop an asset The steps required to develop an asset management process can result in a management process can result in a database that can be leveraged throughout database that can be leveraged throughout the organizationthe organization
Change management is critical to successful Change management is critical to successful asset management processesasset management processes
Uses for a Mature Asset Management Uses for a Mature Asset Management Process Process
Project maintenance trends into the futureProject maintenance trends into the future Develop annual funding profiles for asset Develop annual funding profiles for asset
maintenance, repair, rehabilitation, and maintenance, repair, rehabilitation, and replacement replacement
Identify assets projected for disposal to Identify assets projected for disposal to trigger requests for planning support and trigger requests for planning support and replacement fundingreplacement funding
Asset Management BenefitsAsset Management Benefits
We know our infrastructure’s condition in We know our infrastructure’s condition in detail and can better manage itdetail and can better manage it
Unexpected failures are minimizedUnexpected failures are minimized Renewal and replacement actions are taken Renewal and replacement actions are taken
at the right time – not too soon and not too at the right time – not too soon and not too latelate
Life-cycle approach means we always get Life-cycle approach means we always get most out of assets for our moneymost out of assets for our money