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MBTA Transit Asset Management Plan

Massachusetts Bay

Transportation Authority

Transit Asset Management Plan

February 2014

Prepared with support from:


Approvals

Transit asset management plans are required for all Federal Transit Administration grantees per MAP-21

legislation. Moreover, developing a transit asset management plan makes good business sense. The

benefits from enhanced asset management practice include improved system safety and reliability,

reduced costs, better customer service, and optimized resource allocation. With aging infrastructure,

limited funding and a growing demand for service, the MBTA needs to find ways to better manage and

extend the life of its existing assets, while optimizing its investment in new capital projects. This Transit

Asset Management Plan outlines the MBTA’s policy, approach and specific actions to improve its asset

management practices over the next five years.

Concurrence (by Executive Sponsors):

___________________________________ ___________________________________

Ted Basta, Chief of Strategic Business Jonathan Davis, Deputy General Manager Initiatives and Innovation and Chief Financial Officer ___________________________________ ___________________________________

Gary Foster, Chief Information and Sean McCarthy, Chief Operating Officer Technology Officer

Approval:

___________________________________ ___________________________________

I, Dr. Beverly Scott, MBTA General Manager Date and Rail & Transit Administrator, do fully authorize and endorse MBTA’s Transit Asset Management Plan, dated February 2014


Preface

Transit asset management is considered the cornerstone on which the MBTA intends to improve system

safety and reliability, reduce costs, make better investment decisions, and provide improved service to

its customers. With aging infrastructure, limited funding and a growing demand for service, the MBTA

needs to find ways to better manage and extend the life of its existing assets, while optimizing its

investment in new capital projects. This Asset Management Plan (AMP) outlines the MBTA’s policy,

approach and specific actions to improve its asset management practices over the next five years.

As the Plan was developed four primary themes emerged as critical success factors for helping us to

achieve our asset management goals:

1. Policy - Providing policy direction, ensuring accountability and committing the resources

required for AMP implementation, including an effective organizational structure to oversee it.

2. People - Establishing an asset management culture which supports employees through better

communication, skills assessment, training, knowledge sharing and succession planning.

3. Tools – Providing employees with the systems they need to collect and analyze data relative to

asset age, maintenance costs, condition and performance to support better decision making.

4. Business Practices – Developing and implementing processes for improved lifecycle

management within each of our major asset classes that will lead to better maintenance

practices, extended useful life, a reduction in total lifecycle cost, and improved performance.

Management is committed to addressing each of these success factors, and has developed an Asset

Management Policy Statement to help document and communicate that commitment.

This AMP is considered a “road map,” showing how the MBTA plans to implement this policy and

achieve our asset management goals. It sets out an organizational structure, required resources,

MBTA Asset Management Policy

The MBTA is committed to implementing a strategic process for acquiring, operating, maintaining, upgrading, and

replacing its transit assets to directly support the agency’s mission of providing the nation’s safest and most reliable

public transportation services.

Our policy is to promote a culture that supports asset management at all levels of the organization, to employ effective

asset management business practices and tools, to ensure optimal asset performance and useful life, and to use timely,

quality data to support transparent and cost-effective decision-making for resource allocation and asset preservation.

We shall emphasize people. Through coaching, training, the application of state-of-the-art technology, and improved

processes, we shall ensure our workforce’s ability to identify and meet the MBTA’s asset management needs,

incorporate sustainability and accessibility into our business practices, and to deliver to our customers the best service

and value for every fare and tax dollar spent.


specific action items and a schedule for reaching our destination. It also provides a detailed

implementation plan for each of the action items over a five-year horizon. Following is a brief overview

of key projects that will be initiated within the first year:

o Enhancements to the MBTA’s State of Good Repair (SGR) Database, which will improve the

MBTA’s ability to evaluate long-term capital needs and funding priorities and to forecast future

impacts on asset condition and maintenance costs if we under-invest in capital.

o The implementation of a new Decision Support Tool, which will help the Authority to evaluate

and prioritize capital projects for its CIP in a more objective and transparent manner, while more

closely linking project prioritization to agency objectives.

o The procurement and implementation of a new Maintenance Management System (MMS) for

facilities and linear assets maintained by the E&M department, which will promote improved

maintenance practices by providing better insight into asset costs and performance.

o Significant improvements to the way that the MBTA’s commuter rail operator maintains our

commuter rail fleet and infrastructure assets through an enhanced MMS and new Lifecycle

Management (LCM) Program requirements.

o A Reliability-Centered Maintenance (RCM) pilot program for the Blue Line car fleet which will

provide a standard framework and business practices for lifecycle maintenance; with lessons

learned from this pilot able to support LCM/RCM for the future Red/Orange Line car fleet.

The MBTA fully recognizes the significant challenges that will arise with AMP implementation. It

represents a whole new way of doing business which will require strong management support, buy-in at

all levels of the agency, and a significant commitment of resources to implement it effectively. It will

also reach into all corners of the MBTA operation – including planning, budgeting, human resources,

information systems, design, engineering, procurement, operations and maintenance - requiring a high

level of collaboration and communication that is generally not the norm in large transit agencies.

Finally, it requires that the MBTA take a strategic, long-term perspective to asset management – willing

to take small (and sometimes painful) steps today that may not fully reap benefits until some point in

the future.

Effective transit asset management isn’t easy – but the MBTA considers it definitely worth the effort.

This Asset Management Plan represents a first step in making it happen.


Acknowledgements This Asset Management Plan (AMP) could not have been developed without the valuable input of

management and staff throughout the MBTA organization. By representing nearly every functional

department and major asset class within the agency, they brought to the project a diverse set of

perspectives and ideas that helped to mold the AMP into a document that will allow us to address asset

management at all levels and across all modes. The following MBTA employees provided input

throughout the AMP development process and, as a team, are considered the authors of this document:

Asset Management Leadership Team - Dr. Beverly Scott, Ted Basta, Jonathan Davis,

Mary Fernandes, Gary Foster, Edmond Hunter, Sean McCarthy, Ronald Nickle, Marie

Trottier

Asset Management Improvement Team - Steven Adkins, Joseph Cosgrove, Jeffrey

Gonneville, Robert Guptill, Patricia Hennigan, Bradley Kesler, Satyen Patel, Victor Rivas,

Mary Runkel, John Thornton, Adam Veneziano, Eric Waaramaa

Asset Class Leaders - James Caminiti, Joseph Cheney, Wesley Fjeldheim, Thomas Ho,

James Jackson, Thomas Johnson, Joseph Keeffe, James McMahon, Kim Mennella,

Thomas Nee, Jason O’Dowd, Desiree Patrice, Michael Reddy, Charles Rooney, Ronald

Ross, John Schwartz, Stephen Twerago, Kathleen Wallace, Peter Walworth

The MBTA is also grateful for the dedicated efforts and expertise of the Parsons Brinckerhoff team that

helped to coordinate the AMP process – which included the chairing of workshops, facilitation of

breakout sessions, briefing the leadership team and the drafting of this document. Their extensive

knowledge of asset management, including current best practices within the transit industry, was

instrumental in guiding the MBTA through the process. Providing a key role in the development of this

AMP were Dr. David Rose, Tagan Blake, Lauren Isaac, and Caroline Ducas.

Although too many to list here, the MBTA is also indebted to staff from several other transit agencies

across the United States who have provided extensive guidance and ideas through State of Good Repair

(SGR) Roundtables, APTA conferences and committees, FTA-sponsored webinars and other forums.

Many of their ideas and practices are incorporated into this AMP. We are hopeful that we can return

the favor by sharing the lessons we learn through the development and implementation of this Plan.

Finally, the MBTA would like to acknowledge our partners at the FTA who not only funded this effort but

have provided strong leadership and support for the past several years to promote transit asset

management and state of good repair at both the national and local level. We look forward to working

with FTA in the future as we implement this Plan and address the asset management requirements of

MAP-21.


Contents

EXECUTIVE SUMMARY ............................................................................................................................................ I

A. PLAN DEVELOPMENT APPROACH .............................................................................................................................. II

B. POLICY, GOALS AND OBJECTIVES ............................................................................................................................ IV

C. ASSET MANAGEMENT PLAN IMPLEMENTATION .......................................................................................................... IX

D. IMPLEMENTATION ROADMAP .................................................................................................................................. X

E. IMPLEMENTATION ORGANIZATION AND GOVERNANCE .............................................................................................. XIV

F. COMMUNICATION AND CHANGE MANAGEMENT ...................................................................................................... XV

G. MAP-21 COMPLIANCE ...................................................................................................................................... XVI

I. INTRODUCTION ............................................................................................................................................. 1

A. PURPOSE OF THIS DOCUMENT .................................................................................................................................. 1

B. PLAN DEVELOPMENT .............................................................................................................................................. 1

C. PLAN CONTENTS ................................................................................................................................................... 6

D. DEFINITIONS ......................................................................................................................................................... 6

II. MBTA ASSET MANAGEMENT BASELINE ASSESSMENT ................................................................................... 9

A. BASELINE DEVELOPMENT METHOD ........................................................................................................................... 9

B. FINDINGS ............................................................................................................................................................. 9

C. IMPLICATIONS ..................................................................................................................................................... 14

III. ASSET MANAGEMENT POLICY, GOALS AND OBJECTIVES ............................................................................. 15

A. ASSET MANAGEMENT POLICY STATEMENT ............................................................................................................... 15

B. ASSET MANAGEMENT GOALS, OBJECTIVES, AND IMPLEMENTING ACTIONS ..................................................................... 16

IV. ASSET MANAGEMENT IMPROVEMENT PROGRAM .................................................................................. 25

A. IMPLEMENTATION OVERVIEW ................................................................................................................................ 25

B. IMPLEMENTATION ROADMAP ................................................................................................................................ 27

C. GOVERNANCE AND ACCOUNTABILITY STRUCTURE FOR IMPLEMENTATION ....................................................................... 34

D. COMMUNICATION AND CHANGE MANAGEMENT ....................................................................................................... 40

Tables

TABLE 1 – ASSET MANAGEMENT GOALS, OBJECTIVES, IMPLEMENTING ACTIONS AND METRICS ....................................................... VI

TABLE 2 – RESOURCE REQUIREMENTS SUMMARY .................................................................................................................. XIII

TABLE 3 – MAP-21 ASSET MANAGEMENT AND STATE OF GOOD REPAIR REQUIREMENTS ............................................................ XVI

TABLE 4 - ENTERPRISE-LEVEL FRAMEWORK BUSINESS PROCESS BASELINE FINDINGS ...................................................................... 11

TABLE 5 - ENTERPRISE-LEVEL SUPPORTIVE BUSINESS PROCESS (ENABLER) BASELINE FINDINGS ........................................................ 12

TABLE 6 - ASSET CLASS-LEVEL BASELINE FINDINGS .................................................................................................................. 12

TABLE 7 - IMPLEMENTING ACTIONS SUMMARY ...................................................................................................................... 17

TABLE 8 - ASSET MANAGEMENT GOALS, OBJECTIVES, IMPLEMENTING ACTIONS AND METRICS ....................................................... 22

TABLE 9 – RESOURCE REQUIREMENTS SUMMARY ................................................................................................................... 30

TABLE 10 - MBTA INITIATIVES ADDRESSING MAP-21 REQUIREMENTS ...................................................................................... 38


Figures

FIGURE 1 - ASSET MANAGEMENT PLAN METHODOLOGY ............................................................................................................ II

FIGURE 2 - ROLE OF ASSET MANAGEMENT TEAMS ................................................................................................................... III

FIGURE 3 – IMPLEMENTATION OVERVIEW .............................................................................................................................. IX

FIGURE 4 - ASSET MANAGEMENT PLAN IMPLEMENTATION ROADMAP (0-24 MONTHS) ................................................................. XI

FIGURE 5 - ASSET MANAGEMENT PLAN IMPLEMENTATION ROADMAP (2+ YEARS) ........................................................................ XII

FIGURE 6 - ASSET MANAGEMENT PLAN METHODOLOGY ............................................................................................................ 3

FIGURE 7 - ROLE OF ASSET MANAGEMENT TEAMS .................................................................................................................... 5

FIGURE 8 - ASSET MANAGEMENT MATURITY LEVEL SCORES ..................................................................................................... 10

FIGURE 9 - IMPLEMENTATION OVERVIEW .............................................................................................................................. 25

FIGURE 10 - ASSET MANAGEMENT PLAN IMPLEMENTATION ROADMAP (0-24 MONTHS) .............................................................. 28

FIGURE 11 - ASSET MANAGEMENT PLAN IMPLEMENTATION ROADMAP (2+ YEARS) ...................................................................... 29

FIGURE 12 - PROVISIONAL ORGANIZATION CHART FOR ASSET MANAGEMENT PLAN IMPLEMENTATION ............................................. 37

Page |I


Executive Summary

Transit asset management is defined as a “strategic and systematic process through which an

organization procures, operates, maintains, rehabilitates, and replaces transit assets to manage their

performance, risks, and costs over their lifecycle to provide safe, cost-effective, and reliable service to

current and future customers.”1

Like many other U.S. transit agencies with aging infrastructure, limited financial resources and growing

demand for service, the Massachusetts Bay Transportation Authority (MBTA) considers transit asset

management as critical to its future. This Asset Management Plan (AMP) documents the MBTA’s asset

management policy and planned implementing actions over the next five years to improve its asset

management practices. To implement this, the Plan recognizes that:

1. Asset management is, for many, a new way of doing business. To be effective, transit asset

management needs to be implemented at every stage of an asset’s lifecycle, from its initial

procurement or construction to its ultimate disposal or replacement. This involves collaboration

across the agency, including everything from planning and budgeting, to design and engineering,

to operations and maintenance. To accomplish this, an asset management vision and culture

needs to be embedded within the entire organization.

2. Asset management must be data driven. It requires the collection of timely and accurate data

relative to asset age, maintenance costs, condition and performance; and then processing and

utilizing this information in order to improve asset management practices and to support better

decision making at all levels of the organization.

3. Asset management needs to focus on the people who manage the assets. From the executives

who make funding and policy decisions to the dedicated staff that operate and maintain the

Authority’s assets every day, asset management is performed by people – providing them the

guidance, tools and training they need to better manage assets is key.

4. Asset management is all about the customer. The goal of asset management is to find new and

better ways to cost-effectively meet customers’ needs and expectations, improve service and

reliability, provide better transparency for agency decision making, and obtain the greatest

return from every tax and fare dollar spent. This customer focus drives everything in the Plan.

The AMP also addresses the “Moving Ahead for Progress in the 21st Century” (MAP-21) statutory

requirement that transit agencies receiving funds from the Federal Transit Administration (FTA) develop

a transit asset management plan, and it documents the MBTA’s plans for meeting all MAP-21

requirements related to asset management and state of good repair (SGR).

1 Transit Asset Management Guide: Focusing on the Management of Our Transit Assets. FTA Research Report No.

0027, Federal Transit Administration, October 2012.

Page | II


A. Plan Development Approach

The Asset Management Plan was developed through a collaborative process that included the

structured involvement of three key stakeholder groups who provided input throughout the Plan’s

development. These groups included: (1) a Leadership Team made up of Executive-level managers, (2)

an Asset Management Improvement Team which included managers representing all of the enterprise-

level functions of the Authority, and (3) the Asset Class Leaders, which included MBTA managers and

staff responsible for the lifecycle management of all major asset classes. These stakeholder teams

(representing more than 40 MBTA executives, managers and staff) were involved in each of the three

major steps of the AMP development process, as summarized below:

1. Baseline Assessment. (Where are we now?) All of the stakeholder team members were invited

to participate in a baseline assessment of existing asset management practices and the MBTA’s

maturity level in key areas. This included both a questionnaire and interviews with consultant

staff. The assessment evaluated the gap between the MBTA’s asset management baseline (i.e.,

what we do today) and best practice as outlined in FTA’s Transit Asset Management Guide.

Section II of this document (MBTA Asset Management Baseline Assessment) provides greater

detail relative to the assessment process and findings.

2. Definition of Asset Management Goals and Objectives. (Where do we want to be?) Through a

series of briefings, workshops and breakout sessions, the Leadership Team and the Asset

Management Improvement Team (AMIT) established an asset management policy and a series

of goals and objectives for asset management improvement. Section III of this document (Asset

Management Policy, Goals and Objectives) provides further detail, including the implementing

actions proposed to achieve these goals.

3. Development of Asset Management Implementing Actions and Priorities. (How do we get

there?) With guidance from the Leadership Team, the Asset Management Improvement Team

and Asset Class Leaders developed a five-year implementation roadmap to accomplish the goals

and objectives. Section IV of this document (Asset Management Improvement Program)

provides further detail.

The asset management plan development approach described above is depicted in Figure 1. The role of

each of the MBTA stakeholder teams throughout the Asset Management Plan development process is

illustrated in Figure 2.

Figure 1 - Asset Management Plan Methodology

Page |III


Figure 2 - Role of Asset Management Teams

Leadership Team

Leadership Team

Introductory Briefing

Leadership Team Briefing (Assessment

Results)

Leadership Team

Discussion (Goals and Objectives)

Leadership Team

Discussion (Implement.

Actions)

Leadership Team

Discussion (AM Policy, Resource Require- ments)

Leadership Team

Discussion (Final AMP

and Commun. Strategy)

Asset Management Improvement Team (AMIT)

Interviews with AMIT Managers

Review and Comment on Initial Draft

AMP Document

Asset Class Leaders

Interviews with Asset

Class Leaders

Lifecycle Mgmt Plan

Worksheets to Asset Leaders

for Review and Comment

Leadership Team

AM Improvement Team

Asset Class Leaders:

Breakout Sessions to

Discuss Implementing

Actions

Review and Comment on

Draft Document

(Goals & Obj, Implement.

Actions)

Goals and Objectives Implementing Actions

Workshop to Present and

Discuss Final AMP

Document

Review and Comment on Final Draft

AMP Document Workshop

and Breakout Sessions to Discuss AM Goals and Objectives

Final Baseline Assessment Report and

Gap Analysis Submitted to

AMIT and Asset Class

Leaders

Workshop to Review Final Goals and Objectives

MBTA Managers and Asset Leaders Fill Out Self- Assessment

Tool Introductory Workshop to Discuss AMP,

Objectives, Process and

Schedule

Baseline Assessment

Managers representing the following asset classes: Bridges, Tunnels, Communications, Commuter Rail, Elevators & Escalators, Facilities, Fare Equipment, Operations, Parking, Power, Bus and Rail Fleet, Signals, Stations, Technology, Track and ROW

Workshop to Review

Baseline Assessment

Results (Excel Tool and

Interviews)

Preparation of AMP Document

Includes the following executives: General Manager, Chief of Staff, Chief Financial Officer, Chief Operating Officer, Chief Information Officer, Chief Safety Officer, AGM-Design & Construction, AGM-Supplier Diversity, AGM-Systemwide Accessibility

Managers representing for the following enterprise-level functions: Operating Budget, Capital Budget, Design & Construction, Engineering & Maintenance, Operations, Fleet Engineering, Railroad/Boat Operations, Information Technology, Planning & Development

Page | IV


B. Policy, Goals and Objectives

MBTA Asset Management Policy

To communicate MBTA management’s commitment to improved asset management, explain the link

between it and the agency’s core mission, and broadly outline the MBTA’s approach and expected

outcomes, the Leadership Team developed the following Asset Management Policy Statement:

The MBTA is committed to implementing a strategic process for acquiring, operating,

maintaining, upgrading, and replacing its transit assets to directly support the agency’s

mission of providing the nation’s safest and most reliable public transportation services.

Our policy is to promote a culture that supports asset management at all levels of the

organization, to employ effective asset management business practices and tools, to

ensure optimal asset performance and useful life, and to use timely, quality data to

support transparent and cost-effective decision-making for resource allocation and asset

preservation.

We shall emphasize people. Through coaching, training, the application of state-of-the-

art technology, and improved processes, we shall ensure our workforce’s ability to

identify and meet the MBTA’s asset management needs, incorporate sustainability and

accessibility into our business practices, and to deliver to our customers the best service


MBTA Asset Management Goals and Objectives

In support of this asset management policy, the AMP includes specific goals, objectives, and

implementing actions. The MBTA has identified four agency-wide asset management goals:

1. Policy: Provide agency-wide direction and leadership to increase the MBTA’s asset

management maturity.

Policy is critical to establishing a vision of and support for an asset management culture.

2. People: Establish an asset management culture and support it through talent management

practices.

Improving staff and leadership asset management skills and knowledge sharing within the

agency enhances employees’ lifecycle management competencies.

3. Tools: Provide infrastructure and tools to support data-driven decision-making for asset

management.

This ensures that investment decisions are based on the assessment of business benefits, are

transparent, and are clearly communicated.

Page |V


4. Business Practices: Manage whole lifecycle costs, risks, and performance to achieve cost

savings, improve service reliability, and contribute to customer safety.

Through the application of improved lifecycle management practices the MBTA can improve

reliability, increase maintenance efficiency, and extend the useful life of its assets.

Specific measurable objectives defined for each goal, as well as planned implementing actions to

accomplish these objectives, are specified and listed in Table 1 – Asset Management Goals, Objectives,

Implementing Actions and Metrics.

As illustrated in this table, the MBTA’s investment in the first three asset management goals (Policy,

People and Tools) will support the fourth goal (improved Business Practices) which, in turn, will lead to

improved performance in the form of better service reliability, safety and cost savings.

Nineteen specific implementing actions are also shown in Table 1. Each of these is discussed in greater

depth within Appendix A of the Asset Management Plan. Here, the overall scope of each implementing

action is explained along with a project plan that outlines: key implementation steps, risks to successful

implementation, mitigation strategies, and other critical concerns such as change management,

organization, and implementation resources. Appendix A also outlines roles, responsibilities, level of

impact (high, medium, or low impact on performance metrics) and the timeline for action

implementation.

Also included in Table 1 are the metrics by which MBTA management will be able to periodically assess

the agency’s progress in achieving its asset management goals and objectives.

Page | VI


Table 1 – Asset Management Goals, Objectives, Implementing Actions and Metrics

Goals Objectives Implementing Actions Metrics

1. Policy:

Provide agency-wide direction and leadership to increase the MBTA’s asset management maturity

Provide clear leadership and direction regarding the agency’s asset management strategy and expected outcomes

Establish vision of and provide support for an asset management culture

Increase the agency’s overall asset management maturity

1.1 Develop and maintain an Asset Management Plan that identifies implementing actions

1.2 Establish a governance structure that ensures accountability for implementation and outcomes

1.3 Establish an asset management working group that manages and oversees implementation and refinement of the Plan

1.4 Establish a communications strategy that provides regular, top-down direction and bottom-up feedback regarding asset management policy, strategies, and practices

Asset Management Maturity Self-Assessment Scores:

Overall asset management maturity

Policy

Strategy

Business Plan

Organization and Leadership

Communications

2. People:

Establish asset management culture and support through talent management practices

Improve asset management knowledge sharing within the agency

Improve asset management documentation practices

2.1 Specify staff’s organizational roles, responsibilities, and accountabilities for asset management activities and outcomes

2.2 Identify skills required and any knowledge gaps in current staffing practices to carry out core lifecycle management activities for each asset class

2.3 Provide appropriate staff training on a regular basis to enhance asset management competencies and lifecycle management capabilities

2.4 Establish a succession planning program and supportive hiring policies to prepare for employee turnover


Skills and Training

Values and Culture

Page |VII



3. Tools: Provide infrastructure and tools to support data-driven decision-making for asset management

Implement the business processes, supporting systems, and data integration to provide the data and information required to inform decision-making

3.1 Prepare the planned future business and technology architecture and migration plan for the MBTA’s maintenance management system for facilities and linear assets

3.2 For critical assets:

Establish asset inventories of record that include asset condition, performance, and criticality

Update lifecycle management and related business processes

Implement/upgrade maintenance (and asset) management systems (MMS) based on the established MMS business and technology architecture and migration plan (Action 3.1) and update related business processes

3.3 Deploy a capital planning tool (State of Good Repair Database) that can perform long-range projections of the state of repair for key asset classes (with implications for capital costs, maintenance costs, and asset condition) and review processes to update data

3.4 Deploy a Decision Support Tool to assist with capital funding decisions in the CIP

Asset Management Improvements:

Incorporation of Decision Support Tool in upcoming Capital Improvement Plan cycle

Full implementation of Stage of Good Repair Database (updated records, condition ratings)

Initiation of MMS implementation for facilities and linear assets Asset Management Maturity Self-Assessment Scores:

Information Systems

Capital Planning and Programming

1. Policy 2. People 3. Tools

4. Business Practices:

Reduce (or eliminate) corrective maintenance (CM) actions by asset type

4.1 Develop and pilot an improved lifecycle management process for critical assets (starting with bus and rail fleets) to include:

Asset Management Outcomes:

Asset availability

Ratio of Preventive Maintenance to

Page | VIII



Manage whole lifecycle costs, risks, and performance to achieve cost savings, improve service reliability, and contribute to customer safety

Minimize asset-related service disruptions

Maximize asset availability

Inventory, condition inspection/monitoring program, and level of service/performance targets

Preventive maintenance programs

Lifecycle management strategy

Lifecycle management planning and coordination

Roles and responsibilities 4.2 Implement the lifecycle management process

for key asset classes 4.3 Provide standard procedures, design

standards, training documentation, and specifications in an accessible electronic location and establish processes to keep them up-to-date

4.4 Establish or review design standards (including LEED and other sustainability-based principles) to address whole lifecycle management

4.5 Evaluate and improve the process for purchasing and managing consumable inventory to raise maintenance efficiency and productivity

4.6 Incorporate asset management and lifecycle management considerations in a consistent way into capital projects and maintenance contract procurement processes and implement pilot

4.7 Use a risk-based approach to help identify and prioritize capital investments

Corrective Maintenance, actions and budget

Number of Corrective Maintenance actions by asset type

In-service failures by type of failure by passenger impact

Specific lifecycle cost savings realized: maintenance costs (savings for Preventive Maintenance instead of Corrective Maintenance); replacement costs (savings from delaying asset replacement); resource utilization costs (savings from reducing use of certain resources such as fuel, energy)


Asset Inventory

Condition Assessment and Performance Monitoring

Lifecycle Management Planning

Operations and Maintenance Budgeting

Performance Modeling

Project Management

Continuous Improvement

Page |IX


C. Asset Management Plan Implementation

Becoming a high performance asset management organization requires a long-term commitment.

Experiences at other transit systems around the country and internationally demonstrate that it is a

lengthy journey but one that will realize significant benefits for the MBTA. This Asset Management Plan

is intended to improve asset and system performance in the near term while making changes that will

institutionalize asset management and build a foundation for continual improvement and maturity in

the long-term. Figure 3 provides an overview of how the improvement program will be implemented at

every level of the organization to achieve these goals.

Figure 3 – Implementation Overview

Policy, Goals and Objectives

Training

Leadership

Enterprise Level (Policy)

Organization

People

Maintenance Management

Systems

Information Technology Systems (Tools)

Strategy: Establish architecture and deploy maintenance management systems

Asset Class Level (Business Practices)

Lifecycle Management Plans

Strategy: Implement enterprise processes for lifecycle management

Strategy: Establish policy direction, governance and accountability, use the SGR Database for capital programming, and deploy the Decision Support Tool for prioritization

Needs Assessment

Capital Planning & Programming

O&M Budgeting

Strategy: Establish asset management culture and support through talent management practices

SGR Database

Decision Support Tool

Page | X


The improvement program is aligned with the MBTA’s four asset management goals, addressing the

foundational policy, people, tools, and business practices required for improving asset management

practice at the MBTA:

1. Policy: At the enterprise level, MBTA management will establish policy direction, governance,

and accountability for AMP implementation. This includes the establishment of an effective

organizational structure to oversee and implement the asset management program, use of the

Authority’s State of Good Repair (SGR) Database for agency-wide capital programming and

needs assessment, and a new decision support tool for investment prioritization to support

agency objectives.

2. People: Through leadership, organization and training, an asset management culture will be

established which supports employees through better communication, knowledge sharing,

succession planning and various talent management practices.

3. Tools: Through its IT systems and various software tools, the MBTA will develop and implement

a business and technology architecture for enterprise asset management information. This

includes the implementation of new maintenance management systems (MMS) where none

currently exist (e.g., facilities, linear assets) and enhancing the capabilities of those systems that

are in place (e.g., commuter rail, bus and subway fleet).

4. Business Practices: At the individual asset class level, the MBTA will implement processes for

improved lifecycle management that will lead to better asset maintenance procedures,

extended useful life, a reduction in total lifecycle cost, and improved performance.

D. Implementation Roadmap

The AMP is considered a “roadmap” – showing how the MBTA plans to get from its current asset

maturity level (i.e., where we are now) to achieve its asset management goals and objectives (i.e., where

we want to be). It sets forth the organizational structure, required resources and implementation

actions required to reach its destination over the next 2 to 5 years. The AMP will be reviewed annually

and the road map will be adjusted as priorities and resource levels change, and different ways to reach

asset management goals are identified.

Figure 4 and Figure 5 on the following pages illustrate the MBTA’s current implementation roadmap,

which organizes and prioritizes the MBTA’s planned implementing actions (which were identified in

Table 1) within their respective asset management goals (Policy, People, Tools and Business Practices).

Figure 4 shows the planned timeframe for implementing actions that will take place during the first two

years of the Plan (CY 2014-2015), while Figure 5 shows those actions that will start or continue in years

three through five (CY 2016-2018) and beyond. Each of the implementing actions is discussed in greater

depth within Appendix A of the Asset Management Plan.

Page |XI


Figure 4 - Asset Management Plan Implementation Roadmap (0-24 Months)

0-6 Months 6-12 Months 12-24 Months (Year 2)

Policy: Provide agency-wide direction and leadership to increase the MBTA’s asset management maturity

People: Establish asset management culture and support through talent management practices

Tools: Provide infrastructure and tools to support data-driven decision-making for asset management

Business Practices: Manage whole lifecycle costs, risks, and performance to achieve cost savings, improve service reliability, and contribute to customer safety

4.1: Pilot improved lifecycle management process, including reliability-centered maintenance (RCM) for Blue Line Fleet

1.1: Develop asset manage-ment plan

2.1: Specify staff roles, responsibilities, and accountabilities

Conduct skills assessment (2.2) and implement training updates (2.3) and succession planning (2.4)

3.1: Prepare planned final business and technology architecture for all assets and departments

1.1: Maintain asset management plan

1.2: Establish governance structure1.3: Establish AM working group

1.4: Establish communication strategy

3.2: Implement MMS for E&M, including inventories of record, preventive maintenance requirements, etc.3.2 : Enhance functionality of MMS for Commuter Rail to facilitate LCM practices, as part of new operating agreement

3.3: Deploy capital planning tool (State of Good Repair Database) and integrate with MMS 3.4: Deploy decision support tool for CIP capital project prioritization

4.4: Ongoing update of design standard to address whole lifecycle management

4.6: Pilot incorporation of management principles into capital projects/maintenance contracts

4.7: Use a risk-based approach to help identify and prioritize capital investments

Page | XII


Figure 5 - Asset Management Plan Implementation Roadmap (3+ Years)

Year 3 Year 4 Year 5+





1.1: Maintain asset management plan; assess progress and update annually

Implement training updates and conduct ongoing training (2.3) and succession planning (2.4)

4.2: Expand implementation of the lifecycle management process to other key asset classes4.3: Establish standard procedures, design standards, training documentation, and specifications4.4: Ongoing update of design standards to address whole lifecycle management4.5: Evaluate and improve the process for purchasing and managing consumable inventory4.7: Use a risk-based approach to help identify and prioritize capital investments

3.2: Maintain MMS for Fleet, and Commuter Rail3.2: Continue implementation MMS for E&M, including inventories of record, preventive maintenance requirements, etc.

4.6: Incorporate asset management principles into capital projects and maintenance contract procurement processes

Page |XIII


Table 2 identifies the resource requirements for the initial 24 months of the Plan’s implementation. Its

organization corresponds to the implementation roadmap (Figure 4) and the Plan’s four overall goals

identified in Table 1. Resource estimates and implementation budgets are preliminary only and will be

updated as part of the MBTA’s FY 2015 budget process, through the Asset Management Working

Group’s oversight of specific projects, and as part of the annual review and update of the Plan.

Table 2 – Resource Requirements Summary

Implementing Actions Resource Requirements

Goal #1 - Policy: Provide agency-wide direction and leadership to increase MBTA’s asset management maturity

Asset Management Leadership and Governance

AMP Implementation Program Manager: 1 full-time equivalent (FTE); Asset Management Working Group participation; Management and execution of Communications Plan; Approx. $100,000 per year for general program consultant support

Asset Management Program Implementation Team

4 team elements to Include: - MMS/ IT Manager to oversee Business and Technology Architecture

including MMS Implementation - Project managers to support the major MMS/LCM initiatives within E&M,

Commuter Rail and Fleet Engineering - Continued coordination with the Capital Planning Group to fully deploy

the enhanced SGR Database and Decision Support Tool - Consultant support to help develop and implement Business and

Technology Architecture, establish reliability-centered maintenance (RCM) Blue Line Car pilot and other LCM-related actions, and to deliver staff training/other people-related actions

Goal #2 - People: Establish asset management culture and support through talent management practices

Establish new roles;

Succession planning

Address all major asset classes in 24 months using existing staff and resources (with consultant support as required)

Provide training Approx. $50,000 per year for development of training curriculum

Skills assessment Initiate skills assessment for major asset classes within first 24 months using existing staff with consultant support as required

Goal #3 - Tools: Provide infrastructure and tools to support data-driven decision-making for asset management

Planned future

business/technology

architecture

MMS/IT Manager to oversee Business and Technology Architecture including MMS Implementation (1 FTE); Approx. $100,000 of consultant support in Year 1 to address Business and Technology Architecture for MMS at enterprise level

MMS Implementation Approx. $2.5M for E&M implementation for Years 1 and 2 only (FTA grant in place for initial $1.2M), additional funds will be required for years 3 to 5; 8 E&M interns to support inventory data collection and processing; Commuter Rail MMS improvements funded from new contract/mobilization

SGR Database and Decision

Support Tool

Continuance of current implementation of SGR Database and Decision Support Tool ($950,000 FTA/TAM pilot program grant in place)

Goal #4 - Business Practices: Manage whole lifecycle costs, risks, and performance to achieve cost savings, improve service reliability, and contribute to customer safety

Establish consistent lifecycle

management process

2 FTEs within E&M to support new MMS/lifecycle process: (1) Power and Electrical/Signals and Communications, and (2) Maintenance of Way/Buildings and Structures; 1 FTE within Commuter Rail to oversee the operator’s MMS and LCM program; 2 FTEs within Fleet Engineering and approximately $100,000 of consultant support in Year 1 to support LCM/RCM Blue Line Car pilot.

Page | XIV


E. Implementation Organization and Governance

Asset management plan implementation establishes elements of new on-going roles for asset

management and provides the dedicated resources to drive the implementation of new and improved

business practices.

The organization and governance for implementation has the following key elements:

Asset Management Leadership Team - The Leadership Team is responsible for providing clear

and forceful direction for the policy, change management, and organizational components of

the asset management plan. It includes the General Manager and executives from each of the

Authority’s major divisions (e.g., Finance, ITD, Operations, Design & Construction, Safety,

Accessibility, Supplier-Diversity, Human Resources). The Leadership Team members will be

briefed regularly on AMP implementation progress and they would be expected to

communicate any issues/concerns to their own management team through regular

departmental staff meetings. The Leadership Team will also approve any future revisions to the

AMP.

Asset Management Executive Sponsors – Working on behalf of the Leadership Team, four

Executive Sponsors will provide direct guidance and support for the AMP implementation. The

team is made up of the MBTA’s Chief Financial Officer, Chief Information and Technology

Officer, Chief Operating Officer and Chief of Strategic Business Initiatives and Innovation, who

together represent the key functions required for AMP success. It is envisioned that they will

meet monthly with the Program Manager to review implementation progress and discuss any

issues or barriers that need to be addressed.

Asset Management Plan Implementation Program Manager – A Program Manager will oversee

implementation of the AMP initiatives. Reporting to the Executive Sponsors, the Program

Manager will coordinate closely with the Asset Management Working Group, while working on a

day-to-day basis with the Asset Management Program Implementation Team and any

consultants supporting the AMP effort.

Asset Management Working Group – The Working Group is a cross-functional management

team that provides expertise, inter-departmental coordination and support to the Program

Manager, while ensuring that resources are made available at the department level to

implement the Plan. It includes representatives from all major enterprise-level functions (e.g.,

Operating Budget, Capital Budget, Planning, ITD, Procurement, Design & Construction,

Operations, Engineering & Maintenance, Commuter Rail, and Fleet Engineering). Chaired by the

Program Manager, it is envisioned that the Working Group will meet at least quarterly, with

more regular interaction between the Program Manager and individual Working Group

members as needed.

Page |XV


Asset Management Program Implementation Team – Day-to-day management and

performance of AMP implementing actions is undertaken by a dedicated team of asset

managers assigned to each of the initiatives outlined in the Implementation Roadmap. Each

action will be assigned a project manager by the Leadership Team, who will have direct

responsibility for its implementation. Consultant support will be provided as needed.

The success of the governance model begins with visible high-level buy-in from the Leadership Team.

With scarce resources, the AMP implementation also relies on staff members’ willingness to take on

new responsibilities and will – if fully implemented – change priorities and practices for MBTA

investments in programs, projects, and people.

F. Communication and Change Management

The effective implementation of asset management as an enterprise process will require careful

attention to change management. As the MBTA adjusts its policies, organization, and business practices

to better carry out its asset management responsibilities, change management needs to account both

for the areas directly and indirectly affected by the Asset Management Plan’s implementation. Several

support departments (IT, Procurement, Human Resources, Budget) will have new work requirements as

they support new and updated business practices in Design and Construction, Engineering and

Maintenance, Bus, Rail and Subway Operations.

Communication by leadership and line management within the MBTA will be a key part of change

management so that employees understand the MBTA’s asset management vision, the role of this Plan

and its implementing actions in realizing that vision, and their specific responsibilities to support the

Plan and implementing actions.

The implementation roadmap addresses change management through implementing actions that:

Develop clear communications processes (Action Item 1.4 – Establish a communications

strategy);

Develop clear organization and accountabilities for asset management (1.2 – Establish a

governance structure, 1.3 – Establish an Asset Management Working Group, and 2.1 – Define

organizational roles, responsibilities, and accountabilities);

Identify and address specific training needs (2.2 – Identify skill gaps, and 2.3 – Provide targeted

training);

Implement cross-functional planning at the asset class level (4.1 - Develop and pilot an improved

lifecycle management process for critical assets, and 4.2 – Implement the standardized lifecycle

management process); and

Develop a performance management framework for asset management implementation (1.3 –

Establish an Asset Management Working Group).

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To address the change management considerations – both inside and outside the MBTA – clear

communication will be needed to demonstrate the progress being made in implementing asset

management and the benefits to be gained from continuing the effort.

G. MAP-21 Compliance

As previously stated, one of the principal purposes of this AMP is to facilitate compliance with MAP-21’s

asset management and state of good repair requirements, which are to be detailed in forthcoming rules.

The following table summarizes the MBTA’s provisional plan for MAP-21 compliance.

Table 3 – MAP-21 Asset Management and State of good repair Requirements

MAP-21 Requirement MAP-21 Reference MBTA Compliance Approach

Develop a Transit Asset Management Plan (AMP)

49 U.S.C. 5326(b)(2)

Action 1.1: The MBTA has developed this AMP and has allocated resources for its implementation and maintenance

Develop an AMP that includes capital asset inventories

49 U.S.C. 5326 (a)(2)(A)

Actions 3.2, 3.3: The SGR Database includes an inventory of all MBTA capital assets, while MMS systems will provide greater detail (e.g., component level) for major asset classes

Develop an AMP that includes condition assessments

49 U.S.C. 5326(b)(2) & 5326(a)(2)(A)

Action 3.3: The SGR Database is being enhanced to facilitate asset condition ratings, based on either decay curves or physical inspections; condition assessment pilot programs planned under Action 4.1.

Develop an AMP that includes use of a decision support tool that allows for the estimation of capital investment needs over time

49 U.S.C. 5326(b)(2) & 5326(a)(2)(A)

Actions 3.3, 3.4: The MBTA's SGR Database supports long-term annual funding decisions to address SGR/backlog goals at the asset level, while the Decision Support Tool supports capital project evaluation and prioritization

Develop an AMP that includes investment prioritization

49 U.S.C. 5326(b)(2) & 5326(a)(2)(A)

Action 3.4: The MBTA has implemented a new Decision Support Tool to support capital project prioritization and selection as part of its annual CIP process

Report on the condition of the system

49 U.S.C. 5326(b)(3)

Action 3.3: The SGR Database will have the capability to store and report condition data at the asset, asset class and system-wide level (based on either decay curves or physical inspections)

Provide a description of any change in condition since the last report.

49 U.S.C. 5326(b)(3)

Action 3.3: The SGR Database will have the capability to track and report condition data over time

Provide performance targets in relation to State of Good Repair performance measures

49 U.S.C. 5326(c)(2)

Actions 1.3, 3.3: The Leadership Team will establish SGR performance targets, based on capital funding/backlog scenarios provided by the SGR Database

Report on the progress toward meeting the performance target

49 U.S.C. 5326(c)(3)(A)

Actions 3.2, 3.3: The SGR Database will be used to measure and report progress against SGR targets (e.g., backlog reduction), while MMS systems will capture performance data (e.g., MMBF)

Provide subsequent fiscal year performance targets

49 U.S.C. 5326(c)(3)(B)

Action 1.3: The Leadership Team will establish performance targets for subsequent years

Page |XVII


The MBTA intends to use these MAP-21 requirements as a foundation upon which it will build a robust

asset management program that exceeds these minimum expectations, and can serve as a model for the

Federal Transit Administration and other transit agencies. This AMP documents the MBTA’s plans for

implementing that program.

Page |1


I. Introduction

Transit asset management is a strategic and systematic process through which an organization procures,

operates, maintains, rehabilitates, and replaces transit assets to manage their performance, risks, and

costs over their lifecycle to provide safe, cost-effective, and reliable service to current and future

customers.2

Transit asset management plans are required for all Federal Transit Administration (FTA) grantees per

MAP-21 legislation.3 Moreover, developing a transit asset management plan makes good business

sense. The benefits from enhanced asset management practice include better customer service,

improved productivity, reduced costs, and optimized resource allocation. An asset management plan

can also improve an agency’s communication with policy-makers and stakeholders by providing a clear

framework for the prioritization of capital investments and providing credible data from which to

communicate capital and operating needs.

A. Purpose of this Document

This Asset Management Plan (AMP), developed by the Massachusetts Bay Transportation Authority

(MBTA), involving input from all levels of the agency, is action-oriented and provides a roadmap for

improving the maturity of asset management at the MBTA. The AMP documents the MBTA’s asset

management policy and presents the Authority’s overall asset management improvement program that

is made up of specific implementing actions that will improve asset management outcomes. The AMP

also includes the ongoing governance and accountabilities for managing implementation.

B. Plan Development

The AMP has been developed through a collaborative structured process. Several stakeholder teams

provided input at various points in the Plan’s development:

Leadership Team - This team is comprised of Executive-level managers, including the General

Manager, Chief of Staff, Chief Financial Officer, Chief Operating Officer, Chief Information and

Technology Officer, Chief Safety Officer, Assistant General Manager (AGM) - Design &

Construction, AGM – Supplier Diversity, and AGM – Systemwide Accessibility. The Leadership

Team provided guidance for the development of an asset management policy and provided

input with respect to the MBTA’s overall mission, goals, challenges, and agency strategy for

asset management.

2 Transit Asset Management Guide: Focusing on the Management of Our Transit Assets. FTA Research Report No.

0027, Federal Transit Administration, October 2012. 3 The Federal Transit Administration has issued an advance notice of proposed rulemaking. The final rule has not

been released at this date.

Page | 2


Asset Management Improvement Team - This team is comprised of managers (generally not

executives) that represent all of the enterprise-level functions within the MBTA, including

Operating Budget, Capital Budget, Design & Construction, Engineering & Maintenance,

Operations, Fleet Engineering, Railroad/Boat Operations, Information Technology, and Planning

& Development. The Asset Management Improvement Team (AMIT) provided input to the

Baseline Assessment, including documentation of the Authority’s current enterprise-level asset

management practices, and to the Plan’s development and review, including the development

of goals and implementing actions.

Asset Class Leaders - This team is comprised of managers and staff (not executives) that

represent all of the major asset classes addressed in the Plan, including Bridges, Tunnels,

Facilities, Communications, Commuter Rail, Elevators & Escalators, Fare Equipment, Parking,

Non-Revenue Vehicles, Bus and Rail Fleet, Signals, Traction Power, Stations, Information

Technology, and Track and Right-Of-Way. The Asset Class Leaders helped define the Authority’s

baseline asset management maturity and document its existing practices at the asset class level

as well as helped develop asset management goals and implementing actions. These Asset Class

Leaders will also play a key role in AMP implementation.

Approach

The AMP was developed using an approach that identified the gaps between industry best practices and

the MBTA’s existing asset management processes. The plan to bridge this gap was developed by

specifying agreed-upon policy, strategy and actions to close the gap. The Plan development process was

designed to:

Increase awareness and understanding of asset management within the MBTA,

Provide a common language across the MBTA with respect to asset management,

Build on existing asset management strengths and best practices,

Coordinate in-progress process changes and improvement initiatives, and

Ensure staff members involved in asset management participated in the development of the

goals and action items that they will be responsible for implementing.

The process involved an approach that:

Assessed the MBTA’s existing asset management practices and baseline maturity level; then

evaluated the gap between the MBTA’s asset management baseline and best practice as

outlined in FTA’s Transit Asset Management Guide.

Identified an asset management vision, goals, and objectives for asset management

improvement.

Developed the Authority’s policy statement and an improvement program with specific

implementing actions that provide a roadmap to accomplish MBTA’s asset management goals

and objectives.

Page |3


To carry out the above approach, the MBTA implemented a plan development process following the

specific steps identified in Figure 6, and elaborated on below.

Figure 6 - AMP Methodology

Asset Management Baseline Assessment: The baseline assessment identifies the MBTA’s

current state of asset management maturity as compared to industry best practice (per the

FTA’s Transit Asset Management Guide). The baseline assessment included an initial workshop

with the Asset Management Improvement Team and Asset Class Leaders to cover the AMP

development process and to understand the role of asset management and the AMP’s

relationship to the Authority’s overall business strategy. In parallel with the workshop, Asset

Management Improvement Team members and Asset Class Leaders each completed an Excel-

based Transit Asset Management Self-Assessment Tool to understand both enterprise-level

and asset class-specific practices. Finally, the baseline practices were expounded and validated

through follow-up interviews with each enterprise and asset-class leader, and then shared

with the Leadership Team. Section II of this document (MBTA Asset Management Baseline

Assessment) provides additional details on the assessment methodology and findings.

Development of Asset Management Goals and Objectives: In this step, overall asset

management goals and objectives were established through workshop discussions and

breakout sessions with the Asset Management Improvement Team and Asset Class Leaders. In

the first workshop, the teams reviewed the gaps identified from the baseline assessment

results and developed specific goals, objectives, and performance measures to improve the

Authority’s asset management maturity. In the second workshop, the teams reviewed the final

goals and objectives and provided input to the strategy and implementing actions. This

resulted in recommended asset management goals, objectives and performance metrics which

were then brought before the Leadership Team for discussion and adoption. Section III of this

document (Asset Management Policy, Goals and Objectives) provides further detail and

summarizes the goals, objectives and metrics.

Preparation of the Asset Management Improvement Program: The improvement program is

the implementation plan for improving asset management. It includes the implementing

actions (e.g., specific steps, roles, responsibilities, resources, and schedule) that will advance

the MBTA from its current state of asset management maturity to accomplish the Plan goals.

The implementing actions are based on current best practice in transit asset management and

Page | 4


the specific steps most applicable to the MBTA’s baseline. Development of the improvement

program included a workshop with the Asset Management Improvement Team and Asset Class

Leaders to identify and discuss key implementation steps, risks to successful implementation,

mitigation strategies, and other critical concerns such as change management, organization,

and implementation resources. These implementing actions were then shared with the

Leadership Team for discussion and concurrence. Section IV of this document (Asset

Management Improvement Program) provides further detail, including the MBTA’s “roadmap”

for implementing the Plan over the next five years (2014-2018), and the level of resources

committed to its implementation.

As described above, each of the asset management teams (Leadership Team, Asset Management

Improvement Team, and the Asset Class Leaders) played a critical role throughout the AMP

development process. This was important not only to benefit from their specific expertise and input in

developing the Plan, but it also helped to ensure buy-in of the final AMP document at all levels of the

organization. These roles and contributions are illustrated in Figure 7.

Page |5


Figure 7 - Role of Asset Management Teams

Leadership Team

Leadership Team

Introductory Briefing

Leadership Team Briefing (Assessment

Results)

Leadership Team

Discussion (Goals and Objectives)

Leadership Team

Discussion (Implement.

Actions)

Leadership Team

Discussion (AM Policy, Resource Require- ments)

Leadership Team

Discussion (Final AMP

and Commun. Strategy)

Asset Management Improvement Team (AMIT)

Interviews with AMIT Managers

Review and Comment on Initial Draft

AMP Document

Asset Class Leaders

Interviews with Asset

Class Leaders

Lifecycle Mgmt Plan

Worksheets to Asset Leaders

for Review and Comment

Leadership Team

AM Improvement Team

Asset Class Leaders:

Breakout Sessions to

Discuss Implementing

Actions

Review and Comment on

Draft Document

(Goals & Obj, Implement.

Actions)

Goals and Objectives Implementing Actions

Workshop to Present and

Discuss Final AMP

Document

Review and Comment on Final Draft

AMP Document Workshop

and Breakout Sessions to Discuss AM Goals and Objectives

Final Baseline Assessment Report and

Gap Analysis Submitted to

AMIT and Asset Class

Leaders

Workshop to Review Final Goals and Objectives

MBTA Managers and Asset Leaders Fill Out Self- Assessment

Tool Introductory Workshop to Discuss AMP,

Objectives, Process and

Schedule

Baseline Assessment

Managers representing the following asset classes: Bridges, Tunnels, Communications, Commuter Rail, Elevators & Escalators, Facilities, Fare Equipment, Operations, Parking, Power, Bus and Rail Fleet, Signals, Stations, Technology, Track and ROW

Workshop to Review

Baseline Assessment

Results (Excel Tool and

Interviews)

Preparation of AMP Document

Includes the following executives: General Manager, Chief of Staff, Chief Financial Officer, Chief Operating Officer, Chief Information Officer, Chief Safety Officer, AGM-Design & Construction, AGM-Supplier Diversity, AGM-Systemwide Accessibility

Managers representing for the following enterprise-level functions: Operating Budget, Capital Budget, Design & Construction, Engineering & Maintenance, Operations, Fleet Engineering, Railroad/Boat Operations, Information Technology, Planning & Development

Page | 6


C. Plan Contents

The AMP consists of four sections and an appendix, as follows:

Section I. Introduction: This section provides an introduction to the Plan, including the

background and purpose of the document and an overview of the methodology used to

develop the Plan.

Section II. MBTA Asset Management Baseline Assessment: This section provides an overview

of the MBTA’s current asset management baseline, or maturity, as compared to industry best

practice.

Section III. Asset Management Policy, Goals and Objectives: This section details the

Authority’s asset management policy statement, and the goals, objectives and performance

metrics defined and adopted to address the policy statement.

Section IV. Asset Management Improvement Program: In this section, the asset management

implementing actions are provided in a roadmap for accomplishing the Plan objectives. The

overall organizational structure for implementation, including policy direction, governance,

and accountabilities, are detailed here.

Appendix A. Implementing Actions: This appendix is made up of detailed implementation

action plans which provide a prospectus for each activity necessary for implementation of the

AMP. The action plans provide information on the individuals responsible for each activity, key

implementing steps, the activity duration, dependencies, and risks.

The following supplemental materials to this Plan are prepared as separate stand-alone documents:

The MBTA Asset Management Baseline Assessment: The Asset Management Baseline

Assessment report summarizes the MBTA’s current asset management baseline, or maturity,

and provides a review of the MBTA’s asset management activities against industry best

practice. This provides a baseline against which improvements in the Authority’s asset

management maturity can be tracked.

Lifecycle Management Gap Analysis: This analysis summarizes MBTA practice and lifecycle

management maturity against industry best practice for each asset class.

D. Definitions

Key concepts and terms used throughout the AMP are defined below to provide for a common

understanding of the vocabulary:

Asset Class-Level—Refers to any management or decision-making activities that occur for

individual asset classes. For example, the condition monitoring approach for stations is an asset

Page |7


class-level business process, while establishing an agency-wide policy is an enterprise-level

business process.

Asset Hierarchy—Refers to segmenting assets into appropriate classifications. The asset

hierarchy can be based on asset function or asset type or a combination of the two.

Asset Management—Refers to a strategic and systematic process through which an

organization procures, operates, maintains, rehabilitates, and replaces physical assets like fleet,

infrastructure, and facilities to manage their performance, risks, and costs over their lifecycle to

provide safe, cost-effective, reliable service to current and future customers.

Asset Management Business Processes—Refers to the key processes that comprise the asset

management framework. Business processes include: policy and strategy; inventory, condition

assessment, and performance monitoring; lifecycle management planning; capital planning and

programming; O&M budgeting; and performance modeling.

Asset Management Maturity—Refers to an agency’s level of asset management practice. An

agency’s asset management maturity may be as basic as understanding the nature of all assets

owned. However, a more mature asset management agency should be able to employ that asset

information to model different funding scenarios and optimally allocate funding for its assets.

Enterprise-Level—Refers to any management or decision-making activities that occur at the

higher levels of an organization and that apply to the entire organization. Transit asset

management integrates activities across functions in a transit agency to optimize resource

allocation by providing quality information and well-defined business objectives to support

decision-making within and between classes of assets.

Goal – Refers to a policy statement that establishes an agency’s asset management vision and

purpose.

Implementing Action – Refers to detailed activities which outline how to accomplish asset

management objectives.

Lifecycle Management—Refers to a style of management that enables agencies to make better

investment decisions across the lifecycle of an asset by using management processes and data

specific to each asset as the basis for predicting its remaining useful life, which includes age,

condition, historic performance, and level of usage. Transit asset management involves

processes for managing and maximizing the performance of an asset while minimizing its costs

throughout the course of its lifecycle. Lifecycle activities include the following:

Design/Procure—Creation of an asset includes planning, design, and construction. Acquisition

of an asset includes the scoping of the development and procurement. The asset

Page | 8


management perspective involves considering level of service requirements and total cost

of ownership in this initial step.

Use/Operate—This action regards the use (or operation) of the asset. Asset management

ensures that the asset is available in the specified condition to be used, or operates reliably

to deliver the planned level of service.

Maintain/Monitor—This action involves all the predictive, preventive, corrective, and reactive

activities required to maintain the asset in the condition required to deliver the planned

level of service.

Rehabilitate—This action concerns the planned capital expenditures required to replace,

refurbish, or reconstruct an asset partially, in-kind, or with an upgrade to optimize service

and minimize lifecycle costs. Examples might include reconstruction work on a bridge

structure that replaces critical elements and thereby extends the bridge’s life, or a rail

vehicle overhaul.

Dispose/Reconstruct/Replace—This action refers to activities that take place when an asset

can no longer perform at its intended level of service; the agency has the choice to dispose,

reconstruct, or replace the asset. Typically at this stage, the continued use of the asset in its

present condition is no longer cost effective and/or safe.

Lifecycle Management Plan—This item documents the costs, performance, and risks

associated with an asset class throughout its life. A Lifestyle Management Plan reflects input

from all departments involved in the use of that asset during its lifecycle. Such a plan is used to

ensure that the performance expectations of the asset are understood; fit within the agency’s

broader goals and performance objectives; and that all investment decisions are transparent

and well-communicated.

Objective – Refers to a targeted statement which outlines how asset management goals can

be defined, measured, and managed.

Page |9


II. MBTA Asset Management Baseline Assessment

This section provides an overview of the MBTA’s current asset management baseline, or maturity, as

compared to industry best practice. For more details regarding the baseline assessment, please refer to

the MBTA Asset Management Baseline Assessment report. Information on industry best practices can be

found in the Asset Management Baseline Assessment report and in FTA’s Asset Management Guide4.

The AMP involves an annual evaluation of maturity to provide a benchmark to monitor plan

implementation outcomes against.

A. Baseline Development Method

The basis for determining MBTA’s asset management maturity is based on findings from two sources:

Agency Self-Assessment – Members of the MBTA Asset Management Stakeholder Team filled

out a spreadsheet-based self-assessment tool from the FTA’s Asset Management Guide. 24 of

the team members filled in the tool. The respondents included at least one representative from

each asset class.

Gap Analysis – The consultant team compared findings from in-depth interviews against transit

asset management industry best practice. Interviews were conducted with most members of

the MBTA’s Asset Management Stakeholder Team.

B. Findings

Overall findings from the self-assessment and the gap analysis are summarized below:

MBTA managers’ self-assessment rates MBTA’s overall maturity at 52%

The gap analysis rates MBTA’s overall maturity at 40%

Results from the self-assessment and the gap analysis are shown in Figure 8, which reports the scores

along five dimensions for asset management. The scores in blue report the self-assessment tool results

and the scores in red report the findings of the gap analysis. The five levels consist of the following

elements:

Policy and strategy, level of service objectives, and business plan (Level 1)

Asset inventory and condition inspection (Level 2)

Condition assessment, performance assessment and risk analysis (Level 3)

Capital programming and Operations and Maintenance (O&M) budgeting (Level 4)

Performance modeling and data-driven lifecycle management planning and models (Level 5)

4 Available at http://www.fta.dot.gov/documents/FTA_Report_No._0027.pdf.

http://www.fta.dot.gov/documents/FTA_Report_No._0027.pdf

Page | 10


Figure 8 - Asset Management Maturity Level Scores

Scores can be interpreted as follows:

A score of 80 - 100% indicates mature process and leadership in the transit industry

A score of 60 - 80% indicates that substantial progress has been made towards maturity

A score of 40 – 60% indicates that the process is occurring effectively, but inconsistently

A score of 20 – 40% indicates potential for the process to be effective

A score of 0 – 20% indicates that the process is ineffective

The self-assessment reflected the fact that there is some application of asset management best

practices happening within the MBTA; however, there is significant inconsistency across asset classes

and opportunities for improvement. The gap analysis, which involved assessing MBTA’s current process

and practices against industry best practice for asset management in each area, identified a lower

maturity rating than the self-assessment tool results. This may be explained, in part, due to the inherent

limitations associated with the self-reporting nature of the self-assessment analysis and the differences

between the tool responses (rated on a scale of 1-5) and the calculated summary percentage scores

(based on a 0-100% scale). In addition, the differences between the self-assessment and gap analysis

findings may be explained by the ever increasing awareness and understanding among MBTA

management of both industry and MBTA department-specific asset management best practices. This

increased understanding was evident during the initial stages of the AMP effort as the MBTA

stakeholder teams concurred with the gap analysis results presented during the Baseline Workshop.

Overall, the results indicate a strong foundation to build on with elements of mature practice in some

areas, but in other areas work is needed to improve asset management practices. In general, the scores

Page |11


indicate inconsistent levels of maturity across the agency and between asset classes. Table 4 and 5

summarize the baseline findings for each enterprise-level framework business process and supportive

processes (enablers), respectively, that are foundation items for a successful asset management

initiative.

Table 4 - Enterprise-Level Framework Business Process Baseline Findings

Enterprise-Level Asset Management Business

Process Gap Analysis Findings

MBTA Self-Assessment Tool Score

Vis

ion

& D

ire

ctio

n Policy There is policy-level support of asset management by senior

leadership, but no official overall policy, vision, or goals for the agency.

40%

Strategy There is no agency-wide asset management strategy or associated performance measures; however, some asset management strategies and performance measures exists within asset classes.

40%

Plan This project addresses the need for an Asset Management Plan. 39%

Lif

ecy

cle

Ma

na

ge

me

nt

Asset Inventory Asset-specific inventories exist (e.g., elevators and escalators); however, many of them are not kept up-to-date or don’t contain all of the data needed to support decision-making processes. The fragmented approach is a reflection of having no enterprise-level approach or standards for tracking assets and work.

62%

Condition Assessment

& Performance

Monitoring

Minimal or no condition assessments occur among many asset classes; however, funding decisions are typically made based on experienced staff’s observations and knowledge.

50%

Lifecycle Management

Planning

While some asset classes have formal preventive maintenance programs (e.g., vehicles), others only complete corrective maintenance.

56%

Cro

ss-A

sse

t P

lan

nin

g

an

d M

an

ag

em

en

t

Capital Planning and

Programming

Capital needs are identified based on input from departments. Capital needs lists are not based on lifecycle management plans and do not incorporate “total cost of ownership”. The SGR database is used to identify large-scale total capital needs.

58%

Operations and

Maintenance

Budgeting

Operations and maintenance budgets do not necessarily reflect a work plan developed from the “bottom-up,” in part because work records are not easily available for many asset classes.

57%

Performance

Modeling

Data required for performance modeling is not complete across all asset classes.

51%

Page | 12


Table 5 - Enterprise-Level Supportive Business Process (Enabler) Baseline Findings

Enterprise-Level Supportive Business

Process Gap Analysis Findings

MBTA Self-Assessment Tool Score

En

ab

lers

Organization and

Leadership

There is strong support for asset management from senior leadership.

53%

Skills and Training Succession planning is occurring inconsistently and is a great concern for the agency as many staff retire. Training is mostly ad hoc; on-the-job training is most common.

50%

Communications There is a heavy reliance on personal relationships for cross-functional communications.

50%

Values and Culture Staff at all levels has varying degrees of engagement in asset management activities.

60%

Project Management Many project managers are promoted to leadership positions without adequate training/mentoring specific to their asset management roles.

55%

Continuous

Improvement

Agency-wide asset management goals and measures are not established, so they are not monitored. This does occur inconsistently within some asset classes.

55%

Information Systems There is good IT support, but IT is not staffed sufficiently to fully support all current and future initiatives. Many staff are not trained on the functionality that is available in the current systems.

55%

A summary of the baseline findings for each asset class is shown in Table 6. The average scores shown in

Table 6 indicate that the MBTA is focusing limited funds on the most critical assets (for example:

vehicles and bridges) to “make the system run.” It should be noted that asset classes receiving lower

scores may indicate areas that have lacked investment and funding priority in recent years. For both the

enterprise-level and asset class-level business processes, the gap analysis findings were consistent with

the self-assessment tool scores.

Table 6 - Asset Class-Level Baseline Findings

Asset Class Gap Analysis Findings MBTA Self-Assessment Tool Score

Revenue Vehicles – Bus Accurate, up-to-date inventory; preventive maintenance schedule is established and, for the most part, followed.

80%

Revenue Vehicles – Light & Heavy

Rail

Accurate, up-to-date inventory; asset hierarchy is under-development. Preventive maintenance occurs minimally due to inadequate funding.

76%

Revenue Vehicles – Commuter Rail Planned joint audit of commuter rail fleet and new contract requirements will lead to complete inventory and baseline condition assessment of fleet.

59%

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Non-Revenue Vehicles (NRVs) Asset inventory does not exist; minimal preventive maintenance occurs.

59%

Facilities – Maintenance, Shops,

Yards, Other

Incomplete inventories exist, condition data is mostly unavailable, most maintenance is corrective, and asset data is not tied to any maintenance management system.

42%

Stations (excluding Commuter Rail) Incomplete inventories exist, condition data is mostly unavailable, most maintenance is corrective, and asset data is not tied to any maintenance management system.

41%

Elevators & Escalators Accurate, up-to-date inventory; preventive maintenance schedule followed by contractor. Recent lawsuit required investment priority.

73%

Parking Inventory exists but condition data is mostly unavailable, most maintenance is corrective, and asset data is not tied to any maintenance management system.

35%

Bridges Accurate, up-to-date inventory and condition inspection program followed per regulations. Not tied to any work order/maintenance management system; Preventive maintenance occurs inconsistently.

65%

Tunnels Outdated tunnel inventory exists, condition is monitored, but no preventive maintenance program exists and asset data is not tied to any maintenance management system.

44%

Track and Right-of-Way (excluding

Commuter Rail)

Some items are partially inventoried but other critical components are not, most maintenance is corrective, and asset data is not tied to any maintenance management system.

53%

Traction Power Distribution Incomplete inventories exist and some preventive maintenance occurs. Asset data is not tied to any maintenance management system.

40%

Signals (excluding Commuter Rail) Inventory exists and preventive maintenance occurs, but these are not tracked in a centralized database. Preventive maintenance occurs inconsistently and asset data is not tied to any maintenance management system.

46%

Communications (excluding

Commuter Rail)

Inventory data is incomplete, most maintenance is corrective, and asset data is not tied to any maintenance management system.

34%

Commuter Rail Infrastructure Incomplete inventories exist; contractor not currently incentivized or penalized for completing maintenance.

61%

Fare Collection Equipment Inventory exists; maintenance work orders are tracked in MCRS but no software to track swapped parts; preventive maintenance occurs inconsistently. Asset data is not tied to any maintenance management system.

51%

Information Technology Partial asset inventory exists; critical assets’ conditions are constantly monitored.

53%

Page | 14


C. Implications

MBTA’s overall asset management maturity reveals significant opportunity for improvement; however,

it does reflect some application of asset management best practices happening within the agency. For

example, while asset inventories do not exist for every asset class, there are some asset classes that

have asset inventories with well-maintained data that support decision-making processes. These

pockets of good practice provide examples that other departments (especially those with the most

critical assets) can follow.

Page |15


III. Asset Management Policy, Goals and Objectives

This section details the MBTA’s asset management policy statement, and the goals, objectives and

performance metrics defined to improve the Authority’s asset management maturity.

A. Asset Management Policy Statement

The MBTA’s mission statement reads: “The MBTA is a dedicated world class transit system built upon

customer service excellence, accessibility, reliability, state-of-the-art technology, and a diverse workforce

that reflects our commitment to the communities we serve.” Asset management supports the realization

of all elements of the agency mission. Therefore, the AMP sets forth the following Asset Management

Policy:

The MBTA is committed to implementing a strategic process for acquiring, operating,

maintaining, upgrading, and replacing its transit assets to directly support the agency’s

mission of providing the nation’s safest and most reliable transportation services.

Our policy is to promote a culture that supports asset management at all levels of the

organization; to employ effective asset management business practices and tools; to

ensure optimal asset performance and useful life; and to use timely, quality data to

support transparent and cost-effective decision-making for resource allocation and asset

preservation.

We shall emphasize people. Through coaching, training, the application of state-of-the-

art technology, and improved processes, we shall ensure our workforce’s ability to

identify and meet the MBTA’s asset management needs, incorporate sustainability and

accessibility into our business practices, and to deliver to our customers the best service


The MBTA Asset Management Plan, authorized and adopted by the Leadership Team, is the Authority’s

asset management improvement program. In support of the Authority’s mission statement and the

asset management policy, the Plan specifies asset management goals and objectives. The Plan has four

goals focused on Policy, People, Tools, and Business Practices. Each goal is supported by specific

objectives and implementing actions.

Performance metrics monitor the Agency’s success in implementing the goals and meeting the

objectives, providing accountability for implementation. The AMP roadmap provides the agency-wide

framework for the organization and implementation of Plan actions. Finally, the AMP identifies a

governance and accountability structure for the Plan’s implementation.

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Supporting Policy Principles

The Plan applies the following asset management principles:

Provide a clear vision, performance goals, responsibilities, and a management plan for all

critical assets.

Use objective criteria—such as safety risk, reliability, and criticality to service/customer impact

—to target and prioritize asset investments to ensure performance of the existing transit

system and delivery of high quality transit service for the Authority’s customers.

Invest in and maintain all assets with consideration of their cost, performance, sustainability,

and impact on customers over the course of their entire life, from procurement to disposal.

Identify and perform all appropriate preventive maintenance in order to maximize the

reliability of the transit system and minimize or eliminate corrective maintenance.

Apply sustainability principles to asset management practices in order to support the

“GreenDOT” initiative.

Invest in staff to improve asset management awareness, and ensure employees have the

knowledge and skills necessary to carry out their asset management roles.

Systematically collect, use, and store data to measure past asset performance, understand

future asset performance and needs, plan work, improve asset management practices, and

develop capital and maintenance budgets.

Systematically identify and address assets and asset management practices in need of

improvement.

Comply with applicable legislation, regulations, and statutory requirements, and with other

applicable MBTA requirements.

Review, measure progress, refine, and update the Plan on a regular basis.

B. Asset Management Goals, Objectives, and Implementing Actions

Asset Management Goals

The AMP establishes goals that together provide a vision and overall direction for improving asset

management maturity. The AMP goals are:

1. Policy: Provide agency-wide direction and leadership to increase the MBTA’s asset

management maturity.

Policy is critical to establishing a vision of and support for an asset management culture.

Page |17


2. People: Establish asset management culture and support through talent management

practices.

Improving staff and leadership asset management skills and knowledge sharing within the

agency enhances staff’s lifecycle management competencies.

3. Tools: Provide infrastructure and tools to support data-driven decision-making for asset

management.

This ensures that investment decisions are based on the assessment of business benefits, are

transparent, and are clearly communicated.

4. Business Practices: Manage whole lifecycle costs, risks, and performance to achieve cost

savings, improve service reliability, and contribute to customer safety.

Through the application of improved lifecycle management practices the MBTA can improve

reliability, improve maintenance efficiency, and extend the useful life of its assets.

Policy direction, people/talent management, and infrastructure and tools, when combined together, all

provide a foundation for improved business practices. In turn, better business practices lead to

improved performance in the form of better service reliability, safety, and cost savings.

Asset Management Objectives and Implementing Actions

The AMP establishes measurable objectives for moving the Authority toward each goal. The plan also

identifies a series of implementing actions to address Plan objectives. Table 7, below, summarizes the

implementing actions.

Each implementing action focuses on a specific area of improvement to further the objectives and has a

specific lead member responsible for overseeing its implementation. (Appendix A provides a high-level

work plan for each implementing action.)

Table 7 - Implementing Actions Summary

Implementing Action

Description

1.0 Policy: Provide agency-wide direction and leadership to increase the MBTA’s asset management maturity

1.1 – Develop an AMP Prepare an asset management plan that positions the MBTA to improve asset management maturity and comply with MAP-21 asset management requirements. The AMP is the MBTA’s policy and top management statement regarding direction and what is to be accomplished to improve asset management practices and outcomes. An asset management plan outlines how people, processes, and tools are applied to address the asset management policy and goals. The plan specifies implementing actions, roles, responsibilities, and accountabilities for increasing the maturity of asset management practices and meeting federal asset management requirements.

Page | 18


Implementing Action

Description

1.2 – Establish a governance structure

Provides the planned governance structure for plan implementation. This starts with the recommended AMP implementation organization. The governance structure establishes a Program Implementation Team function for asset management at the MBTA, guided by a Leadership Team and Executive Sponsors, headed by a program manager and supported by an Asset Management Working Group and a Program Implementation Team.

1.3 – Establish an Asset Management Working Group

Establish an Asset Management Working Group to coordinate implementation of actions at the asset class and functional levels and to provide input and feedback to the Plan’s development and implementation. The Asset Management Working Group is a cross-functional team whose members represent the MBTA’s diverse functions tied to asset management and are involved in the day-to-day implementation of the AMP’s implementation actions. The Working Group improves communication with the Asset Management Program Implementation Team and among other asset management functions. It will also coordinate asset management planning, processes, and projects across departments and functions, especially at the enterprise level. Finally, it provides a forum to address general asset management issues, strategy, and policy, and provides oversight of and input to the update of the AMP.

1.4 – Establish a communications strategy

Establish a plan of action that supports effective communication among the Leadership Team, the Asset Management Program Implementation Team, and the Asset Management Working Group and between the Program Implementation Team and Authority stakeholders (both internal and external) to support implementation and monitoring of the Plan, as well as feedback for its update and adaptation. Ensure clear communication of leadership’s asset management policy, strategies, and priorities, as well as the Authority’s commitment to asset management, to staff at all levels of the organization.

2.0 People: Establish asset management culture and support through talent management practices

2.1 – Define organizational roles, responsibilities, and accountabilities

Identify specific roles supporting the asset management governance structure identified in Action 1.2. Define key enterprise asset management roles including capital planning, operations, maintenance, budgeting and technology that support cross-functional coordination (e.g., between Design and Construction and Engineering and Maintenance, between Engineering and Maintenance and Procurement, and between Fleet Maintenance and Materials Management). Define responsibilities and accountabilities for Asset Owners and designate Asset Owners for each asset class to coordinate lifecycle management planning and practices.

2.2 – Identify skill gaps Review existing job descriptions and ensure they are up-to-date. Identify critical positions where employees need to upgrade their skills to improve lifecycle management (maintenance expertise, etc.), and ensure identified workforce requirements and gaps conform to lifecycle management best practices. Identify needed positions, even if they cannot be filled.

2.3 – Provide targeted training

Establish an enterprise-level general asset management curriculum. Review and update asset class-level trainings related to lifecycle management activities (design/ procurement, maintenance and rehabilitation, engineering

Page |19


Implementing Action

Description

and analysis, etc.) where they exist. If trainings related to lifecycle management activities do not exist, develop new asset class-level trainings to cover critical skills for new employees and address skill gaps for the existing workforce. Ensure trainings are owned by MBTA if possible and well-documented for future use. Target training and monitor performance to ensure effectiveness.

2.4 – Establish succession planning program

Develop measures to address turnover in key positions. Institute a systematic succession planning process to identify critical lifecycle management and asset management positions and ensure knowledge transfer measures are in place. Prioritize efforts based on position criticality and risk of employee leaving (e.g., based on retirement eligibility). Review industry compensation scales to attract and retain talent for new asset management roles.

3.0 Tools: Provide infrastructure and tools to support data-driven decision-making for asset management

3.1 – Prepare planned business and technology architecture

The maintenance management system (MMS) is a critical support tool for moving the MBTA’s asset management maturity forward. Where transit agencies have a different MMS system in use for different asset classes (e.g., fleet, facilities, linear assets), it is essential to successful implementation to establish a framework within which all of the MMS systems will operate. This action establishes the agreed enterprise-wide business and technology architecture for the MBTA’s asset inventory. This action will provide a high-level validation of business requirements to be addressed by the MMS and its functional role in asset management. It will also identify the high-level technical architecture and integration areas with financial and other systems.

3.2 – Implement/ upgrade maintenance management systems

Confirm and refine the business and technology architecture established through 3.1 and the fit with the Authority’s MMS implementation. Plan and implement an MMS for E&M assets and upgrade the functionality and utilization of existing MMS systems (including fleet assets and commuter rail). As planned, each of the systems will share a common technology platform, and these MMS will enable tracking of the asset inventory, preventive and corrective maintenance activities and resources, and provide improved information to the State of Good Repair (SGR) Database. The MMS will support prioritized allocation of maintenance resources, improved performance monitoring and quality assurance, more data-driven decision-making, more effective performance improvement, and better management of maintenance resources.

3.3 – Develop a capital planning tool

The SGR Database is a critical tool for evaluating the MBTA’s capital plan and supporting decision-making related to long-term funding priorities. Improvement of the SGR Database includes improving data processes to integrate with the Authority’s MMS, ensuring that the SGR Database can use the most up-to-date, consistent, and accurate data possible, and improving the tool’s functions and capabilities to enhance its modeling approach and output data. Together, these improvements will provide more accurate and useful output data and improve the MBTA’s capital planning capabilities.

Page | 20


Implementing Action

Description

3.4 – Deploy a decision support tool

A new decision support tool is being developed to improve the MBTA’s short- and medium-term capital planning process. The new tool will improve the transparency, objectivity, and performance of investment decision-making. By linking it to the SGR Database, the investment scenarios can also be modeled to show their impact on long-term financial performance and overall state of good repair for the agency. The decision support tool is critical to improving the cost-effectiveness of the MBTA’s investment decisions and, together with the SGR Database, helps ensure the MBTA’s compliance with MAP-21 capital planning requirements.

4.0 Business Practices: Manage whole lifecycle costs, risks, and performance to achieve cost savings, improve service reliability, and contribute to customer safety

4.1 – Develop and pilot an improved lifecycle management process for critical assets (starting with bus and rail fleets)

Implement a lifecycle management pilot project with Fleet Engineering, with a focus on the application of reliability-centered maintenance (RCM) to these assets, starting with the Blue Line car fleet (subject to a feasibility study) and applying lessons learned here for the upcoming Orange/Red Line car fleet. Identify personnel, roles and responsibilities for lifecycle management planning. Establish a standard framework and business processes for lifecycle management activities. Develop data, records, and documentation standards to track lifecycle management planning across various asset classes in a consistent manner.

4.2 – Implement the standardized lifecycle management process

Identify critical assets. Prioritize specific asset classes to implement lifecycle management. Identify personnel, roles and responsibilities for the implementation of the established lifecycle management process for critical assets. Oversee the implementation of the established lifecycle management process by designated asset-class “owners.”

4.3 – Establish standard electronic documentation procedures

Develop a centralized, electronic location (e.g., intranet server) to manage agency-wide and asset-specific standards and documentation. Develop a process to track documentation easily and ensure it is up-to-date.

4.4 – Establish/ update design standards

Identify personnel, roles and responsibilities for the development, review and updating of design standards by asset class. Establish current design standards for each asset class to address lifecycle management. Establish a procedure and schedule for the regular review and updating of standards for each asset class.

4.5 – Evaluate/ improve materials management processes

Evaluate the current process for purchasing and managing inventory and identify inefficiencies/opportunities for improvement. Seek expertise in how to analyze inventory management impacts on maintenance efficiency and productivity. Develop and document improved inventory purchasing and management processes, including improved coordination between Procurement and E&M and the use of a centralized inventory system.

4.6 – Incorporate lifecycle management requirements into capital projects and maintenance

This is an agency-wide action that addresses all asset classes. Establish policy and guidance to address lifecycle management practices into the capital investment and maintenance contract procurement processes. Coordinate the incorporation of asset management and lifecycle management considerations into design specifications, bid documents, and maintenance contract

Page |21


Implementing Action

Description

contracts documentation and implement pilot test. Consider whole lifecycle costs as part of a “best value” procurement process, where applicable.

4.7 – Use a risk-based approach to identify and prioritize capital investments

Establish an agreed agency-wide approach to identifying asset criticality with respect to performance objectives and associated level of service and risk tolerance. Establish method for considering risk in the capital needs identification process. Explicitly incorporate risk criteria into the capital investment prioritization process. Address risk and criticality in asset inventory, condition assessment, performance measurement processes.

Asset Management Performance Metrics

The plan specifies performance metrics that measure the MBTA’s success in accomplishing the asset

management goals and meeting the objectives. The metrics that assess improvements in the maturity of

the asset management process and the practice of asset management are calculated from the Excel-

based Transit Asset Management Self-Assessment Tool that was used to assess baseline performance. In

this way, the Authority can readily track progress in comparison to the Baseline Assessment (see the

Asset Management Baseline Assessment report).

Other metrics track the business impact or performance improvements realized from improved asset

management practices (e.g., ratio of preventative and corrective maintenance actions by asset type,

passenger impact of in service failures).

Summary

The goals, objectives, implementing actions, and metrics that address agency policy are delineated in

Table 8. As described above, general objectives support each goal. Specific implementing actions

translate the objectives into a plan of action, as detailed in Section IV. Performance metrics measure the

Authority’s success in accomplishing the goals.

Page | 22


Table 8 - Asset Management Goals, Objectives, Implementing Actions and Metrics


1. Policy:

Provide agency-wide direction and leadership to increase the MBTA’s asset management maturity

Provide clear leadership and direction regarding the agency’s asset management strategy and expected outcomes

Establish vision of and provide support for an asset management culture

Increase the agency’s overall asset management maturity

1.5 Develop and maintain an Asset Management Plan that identifies implementing actions

1.6 Establish a governance structure that ensures accountability for implementation and outcomes

1.7 Establish an asset management working group that manages and oversees implementation and refinement of the Plan

1.8 Establish a communications strategy that provides regular, top-down direction and bottom-up feedback regarding asset management policy, strategies, and practices


Overall asset management maturity

Policy

Strategy

Business Plan

Organization and Leadership

Communications

2. People:

Establish asset management culture and support through talent management practices

Improve asset management knowledge sharing within the agency

Improve asset management documentation practices

2.1 Specify staff’s organizational roles, responsibilities, and accountabilities for asset management activities and outcomes

2.2 Identify skills required and any knowledge gaps in current staffing practices to carry out core lifecycle management activities for each asset class

2.3 Provide appropriate staff training on a regular basis to enhance asset management competencies and lifecycle management capabilities

2.4 Establish a succession planning program and supportive hiring policies to prepare for employee turnover


Skills and Training

Values and Culture

Page |23



3. Tools: Provide infrastructure and tools to support data-driven decision-making for asset management

Implement the business processes, supporting systems, and data integration to provide the data and information required to inform decision-making

3.1 Prepare the planned future business and technology architecture and migration plan for the MBTA’s maintenance management system for facilities and linear assets

3.2 For critical assets:

Establish asset inventories of record that include asset condition, performance, and criticality

Update lifecycle management and related business processes

Implement/upgrade maintenance (and asset) management systems (MMS) based on the established MMS business and technology architecture and migration plan (Action 3.1) and update related business processes

3.3 Deploy a capital planning tool (State of Good Repair Database) that can perform long-range projections of the state of repair for key asset classes (with implications for capital costs, maintenance costs, and asset condition) and review processes to update data

3.4 Deploy a Decision Support Tool to assist with capital funding decisions in the CIP

Asset Management Improvements:

Incorporation of Decision Support Tool in upcoming Capital Improvement Plan cycle

Full implementation of Stage of Good Repair Database (updated records, condition ratings)

Initiation of MMS implementation for facilities and linear assets Asset Management Maturity Self-Assessment Scores:

Information Systems

Capital Planning and Programming

1. Policy 2. People 3. Tools

4. Business Practices:

Reduce (or eliminate) corrective maintenance (CM) actions by asset type

4.1 Develop and pilot an improved lifecycle management process for critical assets (starting with bus and rail fleets) to include:

Asset Management Outcomes:

Asset availability

Ratio of Preventive Maintenance to

Page | 24



Manage whole lifecycle costs, risks, and performance to achieve cost savings, improve service reliability, and contribute to customer safety

Minimize asset-related service disruptions

Maximize asset availability

Inventory, condition inspection/monitoring program, and level of service/performance targets

Preventive maintenance programs

Lifecycle management strategy

Lifecycle management planning and coordination

Roles and responsibilities 4.2 Implement the lifecycle management process

for key asset classes 4.3 Provide standard procedures, design

standards, training documentation, and specifications in an accessible electronic location and establish processes to keep them up-to-date

4.4 Establish or review design standards (including LEED and other sustainability-based principles) to address whole lifecycle management

4.5 Evaluate and improve the process for purchasing and managing consumable inventory to raise maintenance efficiency and productivity

4.6 Incorporate asset management and lifecycle management considerations in a consistent way into capital projects and maintenance contract procurement processes and implement pilot

4.7 Use a risk-based approach to help identify and prioritize capital investments

Corrective Maintenance, actions and budget

Number of Corrective Maintenance actions by asset type

In-service failures by type of failure by passenger impact

Specific lifecycle cost savings realized: maintenance costs (savings for Preventive Maintenance instead of Corrective Maintenance); replacement costs (savings from delaying asset replacement); resource utilization costs (savings from reducing use of certain resources such as fuel, energy)


Asset Inventory

Condition Assessment and Performance Monitoring

Lifecycle Management Planning

Operations and Maintenance Budgeting

Performance Modeling

Project Management

Continuous Improvement

Page |25


IV. Asset Management Improvement Program

This section details the MBTA’s asset management improvement program. It defines the overall

implementation strategy for accomplishing AMP objectives and then details the organizational structure

for implementation, including policy direction, governance, and accountabilities. It also provides a road

map to initiate AMP implementation within the first two years and beyond.

A. Implementation Overview

The AMP improves performance in the near term while making changes that will institutionalize asset

management and build a foundation for continual improvement and maturity over the long term. The

Asset Management Improvement Program is summarized in Figure 9.

Figure 9 - Implementation Overview

Policy, Goals and Objectives

Training

Leadership

Enterprise Level (Policy)

Organization

People

Maintenance Management

Systems

Information Technology Systems (Tools)

Strategy: Establish architecture and deploy maintenance management systems

Asset Class Level (Business Practices)

Lifecycle Management Plans

Strategy: Implement enterprise processes for lifecycle management

Strategy: Establish policy direction, governance and accountability, use the SGR Database for capital programming, and deploy the Decision Support Tool for prioritization

Needs Assessment

Capital Planning & Programming

O&M Budgeting

Strategy: Establish asset management culture and support through talent management practices

SGR Database

Decision Support Tool

Page | 26


The AMP provides a practical framework for improving asset management maturity. The implementing

actions address the foundational policy, people management, tools, and business practices required for

improving asset management practice. The improvement program has the following elements:

Policy and People: Establish policy direction, governance, and accountability for

implementation

The adoption of the AMP as the Authority’s policy document drives the implementation of the

associated actions. The AMP Implementation Program Manager and the Asset Management Program

Implementation Team, with the support of the Asset Management Working Group, will address change

management and communications and have responsibility for successful action implementation.

Business Practices: Implement enterprise processes for lifecycle management; use the State

of Good Repair (SGR) database to support capital programming and budgeting

These actions build the asset management business architecture and establish enterprise processes. A

foundational element for asset management implementation is establishing the inventory of record –

the database with the most complete and up-to-date records of asset information and history – and

then improving asset management practice for each asset class. The approach is to establish a

consistent process agency-wide that is then implemented by asset class. This results in asset class-

specific asset management improvement.

The implementing actions related to business practices address the promulgation and implementation

of a consistent process for lifecycle management by asset class. This establishes the lifecycle

management (asset management plan) for each asset. The plans address asset hierarchy, preventive

maintenance practices and capital replacement/refurbishment timing. The plans are consistent with and

address business or functional change that will be supported by the planned business and technology

architecture for MBTA’s inventory of record. The improvement and standardization of lifecycle

management practices are also supported through better management of and investment in human

resources through the implementing actions associated with the “People”-focused goal.

Tools: Establish a planned business and technology architecture for Maintenance

Management System implementation

The implementation plan identifies an immediate need to develop the overall business and technology

architecture within which the Authority’s Maintenance Management Systems (MMS) fit, including a new

MMS presently being procured for E&M facility and linear assets, and an existing MMS being upgraded

for commuter rail assets. Development of this architecture is identified as critical to the successful

implementation of the overall AMP and enterprise wide asset management. Going forward, there is also

a need to address the improvement and better utilization of the existing MMS for fleet, as well as the

inventory of record for other asset classes.

Page |27


B. Implementation Roadmap

Figure 10 and Figure 11 provide a roadmap for AMP implementation. The roadmap organizes and

prioritizes each of the implementation actions within an initial two year timeframe (Figure 10) and

shows the actions that will extend beyond the initial two year implementation phase (Figure 11).

Page | 28


Figure 10 - AMP Implementation Roadmap (0-24 Months)

0-6 Months 6-12 Months 12-24 Months (Year 2)





4.1: Pilot improved lifecycle management process, including reliability-centered maintenance (RCM) for Blue Line Fleet

1.1: Develop asset manage-ment plan

2.1: Specify staff roles, responsibilities, and accountabilities

Conduct skills assessment (2.2) and implement training updates (2.3) and succession planning (2.4)

3.1: Prepare planned final business and technology architecture for all assets and departments

1.1: Maintain asset management plan

1.2: Establish governance structure1.3: Establish AM working group

1.4: Establish communication strategy

3.2: Implement MMS for E&M, including inventories of record, preventive maintenance requirements, etc.3.2 : Enhance functionality of MMS for Commuter Rail to facilitate LCM practices, as part of new operating agreement

3.3: Deploy capital planning tool (State of Good Repair Database) and integrate with MMS 3.4: Deploy decision support tool for CIP capital project prioritization

4.4: Ongoing update of design standard to address whole lifecycle management

4.6: Pilot incorporation of management principles into capital projects/maintenance contracts

4.7: Use a risk-based approach to help identify and prioritize capital investments

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Figure 11 - AMP Implementation Roadmap (3+ Years)

Year 3 Year 4 Year 5+





1.1: Maintain asset management plan; assess progress and update annually

Implement training updates and conduct ongoing training (2.3) and succession planning (2.4)

4.2: Expand implementation of the lifecycle management process to other key asset classes4.3: Establish standard procedures, design standards, training documentation, and specifications4.4: Ongoing update of design standards to address whole lifecycle management4.5: Evaluate and improve the process for purchasing and managing consumable inventory4.7: Use a risk-based approach to help identify and prioritize capital investments

3.2: Maintain MMS for Fleet, and Commuter Rail3.2: Continue implementation MMS for E&M, including inventories of record, preventive maintenance requirements, etc.

4.6: Incorporate asset management principles into capital projects and maintenance contract procurement processes

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Priorities and Resource Requirements

This section provides a high-level estimate of the resources required to support the AMP

implementation roadmap. Table 9 identifies the resource requirements for the initial 24 months of the

Plan’s implementation, and its organization corresponds to the implementation roadmap and the Plan’s

four overall goals identified in Table 1. Resource estimates and implementation budgets are preliminary

only and will be updated as part of the MBTA’s FY 2015 budget process, through the Asset Management

Working Group’s oversight of specific projects and as part of the annual review and update of the Plan.

Table 9 – Resource Requirements Summary


Goal #1 - Policy: Provide agency-wide direction and leadership to increase MBTA’s asset management maturity

Asset Management Leadership and Governance

AMP Implementation Program Manager: 1 full-time equivalent (FTE); Asset Management Working Group participation; Management and execution of Communications Plan; Approx. $100,000 per year for general program consultant support

Asset Management Program Implementation Team

4 team elements to Include: - MMS/ IT Manager to oversee Business and Technology Architecture

including MMS Implementation - Project managers to support the major MMS/LCM initiatives within E&M,

Commuter Rail and Fleet Engineering - Continued coordination with the Capital Planning Group to fully deploy

the enhanced SGR Database and Decision Support Tool - Consultant support to help develop and implement Business and

Technology Architecture, establish reliability-centered maintenance (RCM) Blue Line Car pilot and other LCM-related actions, and to deliver staff training/other people-related actions

Goal #2 - People: Establish asset management culture and support through talent management practices

Establish new roles;

Succession planning

Address all major asset classes in 24 months using existing staff and resources (with consultant support as required)

Provide training Approx. $50,000 per year for development of training curriculum

Skills assessment Initiate skills assessment for major asset classes within first 24 months using existing staff with consultant support as required

Goal #3 - Tools: Provide infrastructure and tools to support data-driven decision-making for asset management

Planned future

business/technology

architecture

MMS/IT Manager to oversee Business and Technology Architecture including MMS Implementation (1 FTE); Approx. $100,000 of consultant support in Year 1 to address Business and Technology Architecture for MMS at enterprise level

MMS Implementation Approx. $2.5M for E&M implementation for Years 1 and 2 only (FTA grant in place for initial $1.2M), additional funds will be required for years 3 to 5; 8 E&M interns to support inventory data collection and processing; Commuter Rail MMS improvements funded from new contract/mobilization

SGR Database and Decision

Support Tool

Continuance of current implementation of SGR Database and Decision Support Tool ($950,000 FTA/TAM pilot program grant in place)

Goal #4 - Business Practices: Manage whole lifecycle costs, risks, and performance to achieve cost savings, improve service reliability, and contribute to customer safety

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Establish consistent lifecycle

management process

2 FTEs within E&M to support new MMS/lifecycle process: (1) Power and Electrical/Signals and Communications, and (2) Maintenance of Way/Buildings and Structures; 1 FTE within Commuter Rail to oversee the operator’s MMS and LCM program; 2 FTEs within Fleet Engineering and approximately $100,000 of consultant support in Year 1 to support LCM/RCM Blue Line Car pilot.

Beyond the shifting or adding of resources like full-time equivalents (FTEs) to support each goal’s

implementation, the MBTA also has the flexibility to augment its staff’s capacity through contracting

services and consulting assistance as may be required. In Table 9 those areas beyond MBTAs core

competencies are identified as dollar costs, including both the MMS implementation and other services.

The roadmap and the governance structure, however, are predicated on MBTA staff providing

management and ownership for the implementation of its new business processes.

The use of contracted services allows the MBTA to back-fill other work when critical employees take on

new asset management roles and to add additional capacity to support short-term implementation

before the asset management program’s benefits are fully realized. Outside support can also enable the

MBTA to conduct the asset inventories and condition assessments necessary to establish its

fundamental asset management processes (such as tracking assets in an MMS and measuring condition

for the SGR Database). Finally, the MBTA may need outside resources and expertise for performance

improvement efforts such as the update of assets’ preventive maintenance procedures or the

development of a new asset commissioning process to improve the handover of new assets (e.g., from

Design and Construction to Engineering and Maintenance).

Resource requirements fall into four overall categories, as summarized below, with the major items

identified to date listed:

1. Staffing for the implementation of the recommended asset management program

governance model. This model starts to establish the management and organizational authority

for doing business under a best practice asset management approach. It also provides the

program management structure. The resource requirements are:

o Asset Management Leadership Team and Executive Sponsors. These executives will

provide guidance and leadership to the overall AMP effort within their current positions

and divisions, since a successful asset management program will permeate all levels of

the organization.

o AMP Implementation Program Manager. A Program Manager (1 FTE) will oversee

implementation of the AMP and coordinate asset management functions at the MBTA,

under the direction of the Executive Sponsors and with the support of the Asset

Management Working Group and an Asset Management Program Implementation

Team.

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o Asset Management Working Group. The working group members perform this role as

defined duties in their current positions. They are the cross functional management

team that coordinates and provides input to the dedicated implementation team. This

team also ensures that the MBTA applies a consistent approach across assets and

coordinates effectively across functional groups.

o Management and execution of communications plan. Management and staff efforts

will also be required to support the Program Manager’s execution of the

communications plan.

2. Asset Management Program Implementation Team - staffing and other budget resources for

roadmap implementing actions. The approach establishes a dedicated implementation team

that provides staff resources to implement and coordinate the Plan’s actions as well as provide

critical expertise and institutional capabilities within specific asset classes. The recommended

resourcing for initial AMP implementation (Years 1-2) is:

o A dedicated MBTA team comprised of:

A Program Manager (1 FTE) leading the overall AMP implementation;

An Information Technology manager (1 FTE) to help support the

implementation of a new MMS for facilities and linear assets and the enhanced

functionality of existing MMS for commuter rail and bus/subway fleet;

A project manager within Engineering and Maintenance (E&M) to oversee

application of the new MMS for facilities and linear assets, and standardized

lifecycle management practices within the E&M division, supported by:

An asset manager (1 FTE) dedicated to power and electrical systems

and signals and communication systems, and

An asset manager (1 FTE) dedicated to maintenance of way, buildings,

and structures;

A project manager (1 FTE) within Fleet Engineering to oversee the LCM/RCM

pilot program for the Blue Line car fleet, potentially supported by:

An asset manager (1 FTE) dedicated to the lifecycle management and

reliability-centered maintenance pilot program;

A project manager (1 FTE as part of contract oversight) within Commuter Rail to

oversee the MMS and LCM initiatives that will be implemented under the new

commuter rail operating agreement; and

o Consultant and intern support as required.

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3. Roadmap for 24 Month Implementation of Actions. The resources required to implement the

roadmap actions are those managed and led by the dedicated Asset Management Program

Office Implementation Team as follows:

o People: Establish asset management culture and support through talent management

practices. Led by the Program Manager, and closely coordinated with the Asset

Management Working Group and MBTA Human Resources/Training, implementation

will be focused on development of a general asset management training curriculum,

supported by asset class specific training programs and succession planning measures.

o Tools: Provide infrastructure and tools to support data-driven decision-making for

asset management. The business and technology architecture action is anticipated to

be completed by the AMP Implementation Program Manager with staff and consultant

support ($100,000 initially budgeted). The MMS implementation budget for E&M is

approximately $2.5 million for Years 1-2 (for hardware/software purchase and

installation), as well as interns for asset data retrieval and input. $1.2 million for the

initial E&M hardware/software cost is already FTA-funded, and it is anticipated that the

remaining costs for years 3 to 5 will federalized in the future. The new or enhanced

MMS for commuter rail assets will be funded under the upcoming operating agreement

(via the contract’s mobilization agreement and annual fee). Development of the SGR

Database and Decision Support Tool will continue based on an existing federal “TAM

Pilot Program” grant, including the development of data interfaces to retrieve up-to-

date input data from the MMS.

o Business Practices: Manage whole lifecycle costs, risks, and performance to achieve

cost savings, improve service reliability, and contribute to customer safety. The MBTA

plans to pilot the application of improved lifecycle management practices with the

fleet, including implementation of a reliability-centered maintenance (RCM) program.

$100,000 has been budgeted for an initial study/report focusing on the costs and

benefits of an RCM program for the Blue Line car fleet. If approved, implementation of

this RCM Blue Line car pilot is intended to inform the Authority as to how best to

implement a similar LCM/RCM program for the upcoming Orange/Red Line car fleet. As

the MBTA gains experience and standardizes its approach to maintenance planning,

condition assessment, reliability-centered maintenance, documentation of procedures,

review of design standards, materials management, and improved capital needs

identification, it is anticipated that additional resources will be allocated to expand the

application of improved lifecycle management processes to other critical asset classes.

4. Beyond 24 months. The implementation and upgrade of maintenance management systems,

the LCM/RCM practices pilot program, enhancements to the SGR Database, and the other work

performed in the initial 24-month roadmap will provide the basis for estimating resource needs

beyond 24 months. Following are some examples:

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o The AMP assumes in the first two years that a MMS business and technology

architecture will be developed and applied for E&M and commuter rail assets. Lessons

learned within this initial 24-month period can then be used to establish processes for

enhanced MMS data collection and functionality for other asset classes (e.g., bus fleet,

bridges), while an MMS team is put in place to the manage the ongoing administration

and maintenance of the systems at both an asset class and enterprise level.

o The same applies to the RCM pilot program for the Blue Line car fleet. If implementation

over the first two years is deemed successful, the Authority may opt to undertake a

similar approach for the new Red/Orange Line car fleet once it is put into service and to

expand the approach to other critical assets like signals or traction power supply.

Resource requirements will need to be determined at that time.

o As more mature asset management practices are implemented it is expected that the

MBTA will evolve toward processes facilitated by maintenance planners who program

preventive maintenance, are responsible for asset commissioning, conduct data QA/QC,

provide MMS support, and run reports and analysis for maintenance and management

clients. Maintenance engineers would also be needed to support asset lifecycle

management planning, identify capital investment needs, develop system architectures

and investment plans, and lead performance improvement efforts. To facilitate this,

MBTA staff will need to be re-trained and provided the tools to undertake this new

approach to asset management.

The staffing and resource levels required to undertake these initiatives will be addressed after

the initial implementation is complete, as part of the annual AMP assessment and update.

It is important to note that the AMP’s two year action plan uses a short time horizon that will be

updated based on the early progress of the asset management implementing actions. As the asset

management improvement program becomes more established, it will be possible to move to a longer

term planning horizon.

C. Governance and Accountability Structure for Implementation

The adopted AMP specifies governance and accountabilities for implementation. The MBTA is a very old

institution that has often faced the need to reinvent itself and transform how it does business – whether

to keep up with public policy (e.g., climate change), technology (e.g., mobile apps), or system expansion

and renewal. Asset management presents such a challenge, and implementation begins with the

definition of new governance and accountability structures to organize asset management efforts.

Governance

The governance plan for AMP implementation is summarized in Figure 12, and explained below. The

success of this governance model begins with visible high-level buy-in. With scarce resources, the AMP

implementation also relies on staff members’ willingness to take on new responsibilities and will – if

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fully implemented – change priorities and practices for the MBTA investments in programs, projects,

and people.

The governance structure is designed to manage the implementation of the AMP. It also provides a

starting point for the ongoing asset management roles and responsibilities required for effective asset

management. The implementation governance structure ties specific oversight responsibilities to

specific staff members and establishes a clear reporting structure beginning at the MBTA’s highest

organizational level. The high-level governance structure consists of the following:

Leadership Team – The Leadership Team is responsible for providing clear and forceful direction

for the policy, change management, and organizational component of the AMP. It includes the

General Manager and executives from each of the Authority’s major divisions (e.g., Finance, ITD,

Operations, Design & Construction, Safety, Accessibility, Supplier-Diversity, Human Resources).

The Leadership Team members will be briefed regularly on AMP implementation progress and

they would be expected to communicate any issues/concerns to their management team

through regular departmental staff meetings. The Leadership Team will also approve any future

revisions to the AMP.

Asset Management Executive Sponsors – Working on behalf of the Leadership Team, four

Executive Sponsors will provide direct guidance and support for the AMP implementation. The

team is made up of the MBTA’s Chief Financial Officer, Chief Information and Technology

Officer, Chief Operating Officer, and Chief of Strategic Business Initiatives and Innovation, who

together represent the key functions required for AMP success. It is envisioned that they will

meet monthly with the Program Manager to review implementation progress and discuss any

issues or barriers that need to be addressed.

Program Manager for AMP Implementation – The AMP establishes the new function of

Program Manager for AMP Implementation. This position provides management and technical

leadership for asset management across the MBTA’s divisions, accountability for Plan

implementation and meeting asset management performance goals, and day-to-day

coordination with the Asset Management Program Implementation Team. The Program

Manager reports to the Leadership Team, through the Executive Sponsors, and provides a

quarterly review of progress against the Plan. The Program Manager also reports annually on

progress in improving the Authority’s asset management maturity.

Asset Management Working Group – The AMP Implementation Program Manager chairs the

Asset Management Working Group (a continuation of the Asset Management Improvement

Team). The Working Group is a cross-functional management team that provides expertise,

inter-departmental coordination and support to the Program Manager, while ensuring that

resources are made available at the department level to implement the Plan. It includes

representatives from all major enterprise-level functions (e.g., Operating Budget, Capital

Budget, Planning, ITD, Procurement, Design & Construction, Operations, Engineering &

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Maintenance, Commuter Rail, and Fleet Engineering). The Asset Management Working Group

has the following responsibilities with respect to this Policy:

o Providing coordination and support throughout the organization for the change

management process, including adoption of asset management principles and

implementation of actions within each asset class and asset management function,

o Providing input into and feedback to the AMP’s implementation approach,

o Quarterly reporting of implementation status for specific AMP actions, and

o Annual review and update of the Plan (for the Leadership Team’s approval) to continue to

carry out this policy and ensure consistency with the MBTA’s overall mission and strategic

plan.

Asset Management Program Implementation Team – Day-to-day management and

performance of AMP implementation actions is undertaken by a dedicated team of asset

managers assigned to each of the initiatives outlined in the Implementation Roadmap. Each

action will be assigned a project manager by the Leadership Team, who will have direct

responsibility for its implementation.

Figure 12 shows a draft organizational chart for the AMP’s implementation, focusing on action items

during Years 1 and 2 of the Plan. It should be noted that any job titles shown here are for descriptive

purposes only, and all proposed positions will be reviewed as part of the FY 2015 budget process.

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Figure 12 - Provisional Organization Chart for AMP Implementation

Operations (COO)

Key: AM Management AM Implementation AM Support

AM Leadership Team, Working AM Program Implementation Team Third Party/Consultant Support

Group and Program Manager (Speci fic AM Ini tiatives) (As Needed)

General

Manager

AM Executive Sponsors AM Leadership Team

CFO, COO, CTO, Chief-SBII (Executive Level)

Finance (CFO)

Capital Planning Group AMP Implementation AM Working Group

(SGR Database, DST) Program Manager (Enterprise/Dept. Level)

ITD (CTO)

MMS/IT Technical Consultant Support Consultant Support Consultant Support

Services Manager (MMS - IT/Business Arch.) (AM Training Initiatives) (LCM/RCM Pilot Program)

MMS/LCM Project Mgr. MMS/LCM Project Mgr. MMS/LCM Project Mgr.

Commuter Rail Engineering & Maint. Fleet Engineering

4 MMS interns 4 MMS interns

Commuter Rail

Operator

Asset Manager Asset Manager Asset ManagerPower & Electrica l/ Maint. Of Way/ Blue Line Car

Signals & Comm. Bldgs . & Structures LCM/RCM Pi lot

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Accountability

Beyond the accountabilities established by the MBTA’s asset management governance structure, there

are two external mechanisms that enforce accountability for asset performance and asset management

improvement.

MAP-21

The first external mechanism is MAP-21. Section 5326 of MAP-21 makes it clear that asset management

is to be the norm for all transit agencies and that it will be an important part of how transit agencies are

evaluated by FTA. As FTA has explained:

“MAP-21 requires FTA to define the term “state of good repair” and create objective

standards for measuring the condition of capital assets, including equipment, rolling

stock, infrastructure, and facilities. Based on that definition, FTA must then develop

performance measures under which all FTA grantees will be required to set targets. All

FTA grantees and their subrecipients are required to develop transit asset management

plans. These plans must include, at a minimum, capital asset inventories, condition

assessments, and investment prioritization. Each designated recipient of FTA formula

funding will be required to report on the condition of its system, any change in condition

since the last report, targets set under the above performance measures, and progress

towards meeting those targets. These measures and targets must be incorporated into

metropolitan and statewide transportation plans and transportation improvement

programs (TIPs). FTA will support this effort through technical assistance, including the

development of an analytical process or decision support tool that allows recipients to

estimate their capital investment needs over time and assists with asset investment

prioritization.”5

MBTA is addressing these MAP-21 requirements through several major initiatives, as summarized in

Table 10.

Table 10 - MBTA Initiatives Addressing MAP-21 Requirements


Develop a Transit Asset Management Plan (AMP)

49 U.S.C. 5326(b)(2)

Action 1.1: The MBTA has developed this AMP and has allocated resources for its implementation and maintenance

Develop an AMP that includes capital asset inventories

49 U.S.C. 5326 (a)(2)(A)

Actions 3.2, 3.3: The SGR Database includes an inventory of all MBTA capital assets, while MMS systems will provide greater detail (e.g., component level) for major asset classes

5 www.fta.dot.gov/documents/MAP-21_essay_style_summary_v5_MASTER.pdf, accessed July 15, 2013.

http://www.fta.dot.gov/documents/MAP21_essay_style_summary_v5_MASTER.pdf

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Develop an AMP that includes condition assessments

49 U.S.C. 5326(b)(2) & 5326(a)(2)(A)

Action 3.3: The SGR Database is being enhanced to facilitate asset condition ratings, based on either decay curves or physical inspections; condition assessment pilot programs planned under Action 4.1.

Develop an AMP that includes use of a decision support tool that allows for the estimation of capital investment needs over time

49 U.S.C. 5326(b)(2) & 5326(a)(2)(A)

Actions 3.3, 3.4: The MBTA's SGR Database supports long-term annual funding decisions to address SGR/backlog goals at the asset level, while the Decision Support Tool supports capital project evaluation and prioritization

Develop an AMP that includes investment prioritization

49 U.S.C. 5326(b)(2) & 5326(a)(2)(A)

Action 3.4: The MBTA has implemented a new Decision Support Tool to support capital project prioritization and selection as part of its annual CIP process

Report on the condition of the system

49 U.S.C. 5326(b)(3)

Action 3.3: The SGR Database will have the capability to store and report condition data at the asset, asset class and system-wide level (based on either decay curves or physical inspections)

Provide a description of any change in condition since the last report.

49 U.S.C. 5326(b)(3)

Action 3.3: The SGR Database will have the capability to track and report condition data over time

Provide performance targets in relation to State of Good Repair performance measures

49 U.S.C. 5326(c)(2)

Actions 1.3, 3.3: The Leadership Team will establish SGR performance targets, based on capital funding/backlog scenarios provided by the SGR Database

Report on the progress toward meeting the performance target

49 U.S.C. 5326(c)(3)(A)

Actions 3.2, 3.3: The SGR Database will be used to measure and report progress against SGR targets (e.g., backlog reduction), while MMS systems will capture performance data (e.g., MMBF)

Provide subsequent fiscal year performance targets

49 U.S.C. 5326(c)(3)(B)

Action 1.3: The Leadership Team will establish performance targets for subsequent years

While MAP-21 will expire in 2014, it may well be extended just as its predecessor was. Moreover,

Section 5326’s requirement for asset management planning is likely to continue in any successor. 6

Section 5326 also links asset management planning to the regional planning and programming that is

incorporated in the Long Range Regional Plans and the Transportation Improvement Program (TIP).

Particularly when priorities need to be shifted, the MBTA expects that the AMP will be a useful way to

explain and support such changes.

Massachusetts’ Recently Enacted Transportation Legislation

The importance of an effective asset management system is further underscored by recently enacted

state legislation. In 2013 Massachusetts adopted new legislation (Act of 2013, Chapter 46) to both

6

FTA has already added a reference to section 5326 to its standard forms for 2013 agreements, even though the immediate impact on grantees is expected to be minimal. www.fta.gov/documents/19-Changes-Agreements.pdf, accessed July 15, 2013.

http://www.fta.gov/documents/19-Changes-Agreements.pdf

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increase the funding available for transportation and to establish tools by which key policy goals –

including asset management - would be advanced. Specific requirements include the following:

Section 4 sets some specific goals for MassDOT’s previously established Office of Performance

Management and Innovation, including a reduction in the age of all urban bus fleets and an

increase in on-time-performance.

Section 11 creates a Project Selection Committee that is to create uniform project selection

criteria to be used in developing a comprehensive statewide plan. The criteria are to be the

product of a ‘data driven’ process that includes asset condition and that focuses on

preservation and maintenance, as well as other factors.

Section 12 creates a “Transportation Performance and Asset Management Advisory Council”

that is to advise MassDOT on performance metrics and on the asset management system that

the state uses to evaluate the multimodal state system. Progress reports are due to the

legislature each October 1.

Sections 68-69 establish an aggressive timeline for MassDOT’s statewide asset management

plan, with recommendations due to the MassDOT Board by November 1, 2013 and

implementation expected by July 1, 2014.

These provisions provide a clear expectation that asset management plans and principles are expected

from all parts of MassDOT (the MBTA included) and that asset management should be an important

consideration when MassDOT prioritizes the new funding from the legislature.

With both the FTA and the Massachusetts legislature endorsing asset management plans and expecting

results from that process, the MBTA plans to press forward with its planning in this area, including the

establishment of a governance system that will allow both the MBTA and MassDOT to benefit from the

new focus that the legislation has given to asset management principles.

D. Communication and Change Management

The effective implementation of asset management as an enterprise process will require careful

attention to change management. With the MBTA adjusting its policies, organization, and business

practices to better carry out its asset management responsibilities, change management needs to

account both for the areas directly and indirectly affected by the AMP’s implementation. Several

support departments (IT, Procurement, Human Resources, Budget) will have new work requirements as

they support new and updated business practices in the line departments (construction, bus, rail and

subway operations).

Communication by leadership and line management within the MBTA will be a key part of change

management so that employees understand the MBTA’s asset management vision, the role of this Plan

and its implementing actions in realizing that vision, and their specific responsibilities to support the

Plan and implementing actions.

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The implementation road map addresses change management through implementing acts that:

Develop clear communications processes (Action Item 1.4 – Establish a communications

strategy);

Develop clear organization and accountabilities for asset management (1.2 – Establish a

governance structure, 1.3 – Establish an Asset Management Working Group, and 2.1 – Define

organizational roles, responsibilities, and accountabilities);

Identify and address specific training needs (2.2 – Identify skill gaps, and 2.3 – Provide targeted

training);

Implement cross-functional planning at the asset class level (4.1 - Develop and pilot an improved

lifecycle management process for critical assets, and 4.2 – Implement the standardized lifecycle

management process); and

Develop a performance management framework for asset management implementation (1.3 –

Establish an Asset Management Working Group).

The implementation of the AMP is expected to be a challenging process. To help mitigate this, the

following strategies will be utilized as that process moves forward:

Given the scope of the challenge, the MBTA will prioritize its efforts and advance tasks in a few

areas faster than others. This approach will provide easily understood success stories and

recognize departments that are ready to tackle the challenge with both knowledge and

enthusiasm. It will also allow additional resources to be focused in a few areas and the overall

cost to be phased.

A major component of the AMP is the improvement of lifecycle management practices. In

practice, this will include the designation of asset “owners” for each asset class to document,

and update as necessary, lifecycle management procedures and ensure coordination across

the asset lifecycle from design and procurement to disposal or retirement. The Leadership

Team will need to recognize the new responsibilities of asset owners and ensure they have the

availability and support to execute these critical activities.

Dashboards provide transparency and can help highlight the benefits to be gained by effective

asset management. The MBTA’s high level commitment to asset management can be

reinforced by a developing an AMP performance dashboard that tracks both implementation

and benefits.

While MAP-21 specially charged transit authorities with adopting asset management

principles, the rest of MassDOT will be looking at similar approaches as State of Good Repair

(SGR) dominates the broader DOT capital program. The MBTA will use its asset management

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initiative as an opportunity to further the progress that has already been made aligning

MassDOT’s modal components.

Asset management will demand serious changes in the way that the MBTA makes decisions. To the

extent that the governance structure is effective at supporting those changes, the MBTA will be able to

demonstrate benefits from its better choices.

Change Management Considerations

The AMP’s list of recommended implementation actions makes it clear that the message of change will

need to be delivered throughout the MBTA for the asset management process to be effective. The

impacts expected from the Plan – particularly in terms of the MBTA’s investment choices – will also be

significant. Both the process and the outcome will require a clear and proactive communication

strategy. That strategy will be needed in the larger arena of public opinion, as well as inside the MBTA.

MassDOT’s 2013 Plan (“The Way Forward”) listed almost $3.4 billion in State of Good Repair (SGR) needs

that the MBTA will be facing in the next 10 years, in addition to capital commitments, capacity

enhancements, a debt load that now consumes virtually all fare revenue, and annual operating deficits.

The MBTA is a major beneficiary of recently enacted legislation that will increase transportation funding.

With that new funding, the MBTA will face expectations for more thoughtful and cost effective spending

choices among competing needs. Those expectations are likely to be renewed regularly since the MBTA

is expected to pursue biennial fare increases.

A first communication need is internal to key constituencies at the MBTA in order to explain that the

AMP merits their support and that it will succeed. As detailed in the improvement program, several

support departments (IT, Procurement, Human Resources, Budget) will need to accept change, in

addition to the line departments (construction, maintenance, and bus, rail and subway operations) that

will be most directly benefited. Communication within the MBTA will be a key part of change

management.

The MBTA is facing a major shift in its workforce. Established leaders in every department are nearing

retirement. New systems and skills are becoming basic to MBTA operations, but increases in the MBTA’s

compensation system (particularly for managers) have been resisted. The current compensation

structure provides barriers to career progression within the Authority to an executive, non-union, level.

There is pressure to keep down staff numbers (FTEs) and to staff up only by replacing staff that retire or

leave. As noted in the AMP improvement program, the MBTA generally does not provide for succession

planning and often does not allow for overlap between old and new staff. This can seriously hinder the

transfer of institutional knowledge. While these problems are shared by much of the transit industry,

they also make change more difficult – new systems and duties mean more work but not more pay; new

staff tend to come with the loss of existing staff; resources to implement change must be taken from

resources that are being used to sustain the system. In those circumstances, many staffers are going to

be skeptical of the benefits to be gained from a new initiative such as asset management, but very

certain of the burdens and risks that it might bring. To counter this tendency, employees must see the

Page |43


AMP’s value as a tool that will improve their ability to do their jobs and have a high level of ownership of

its implementation.

Communications Strategy

To address the change management considerations – both inside and outside the MBTA – clear

communication will be needed to demonstrate the progress being made in implementing asset

management and the benefits to be gained from continuing the effort.

The MBTA’s internal communications strategy should include:

An annual report to the Board on progress made against the Plan, expected next steps,

resources needed, and savings to be achieved. This report should also cite compliance with

FTA requirements under MAP-21 Section 5326 and the data demands of the processes

described in Sections 11-12 of the State Transportation Funding bill. Anecdotes from major

departments should be developed to explain the process and purpose of asset management.

These stories of success encourage other departments and teams to follow. Particularly if

implementation is to be phased, early pilot projects are very important to demonstrate the

initiative’s value and help the MBTA’s workforce understand the vision for asset management.

Training for staff in asset management and the MBTA’s Plan. A broad training effort will be

needed to support the change management process to improve the MBTA’s asset

management maturity. For many employees, training will be their first exposure to asset

management. The general asset management training program should be calibrated to give a

positive perspective on the overall scope of the initiative, stressing the benefits to be gained

and the fact that it is becoming the industry standard for all transit properties. When the

general asset management training is complemented with asset class- or function-specific

training and employee performance is tracked, the training program can be translated into

measurable results for the Authority and personal achievement for the staff members.

Use the MBTA’s internal communication tools. The MBTA has developed an extensive set of

internal communication tools – newsletters, posters, events, paycheck notices, etc. - that can

be focused on particular subjects and reinforce the General Manager’s announcement of a

new initiative such as the AMP. These tools have proved effective with topics such as safety,

diversity, and courtesy in the past. Given the widespread internal cooperation that will be

required for the AMP to succeed, asset management might be an appropriate subject for a

similar campaign.

While the internal communications strategy will be particularly important for change management, an

external communications strategy will be needed to make sure that the public and key stakeholders

have an accurate understanding of the vision for and value of asset management and the challenges the

MBTA faces. Such information helps translate into support for a critical initiative and recognition of its

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value. External support helps sustain and drive what can be an extended change process. That support

will also be important if some projects and initiatives lose priority because of the AMP.

Elements of the MBTA’s external communication strategy should include:

Explaining to customers the performance metrics and targets applied: reliability,

maintainability, investment backlog, average condition, etc. The MBTA’s customers will be

among the most important judges of the AMP’s success. The anecdotes of success discussed

above will be helpful, as will analogies that emphasize the practicality of “smarter”

investments. However, since implementation of the AMP is unlikely to result in overall MBTA

budget reductions (as opposed to greater cost efficiency) it would be beneficial to emphasize

dashboard metrics that reflect a direct impact on service – for example, fleet reliability and the

ratio of corrective to preventive maintenance.

Communication to policy makers. The legislature has been and will continue to be very

involved with the MBTA’s performance and funding, as will the Mayor of Boston and the

Governor. Also, municipal officials in the MBTA service district weigh in through the MBTA

Advisory Board and the Boston Regional Metropolitan Planning Organization (MPO) and often

are key project advocates. The Congressional delegation will be voting on an extension or

successor to MAP-21 and its provisions for asset management. Regular outreach to elected

officials is important since they play a key role in determining the MBTA’s funding levels and

financial constraints as well as investment priorities. Outreach to policy makers can highlight

many of the same facts on asset management challenges and benefits shared with the Board,

as well as a discussion of any local/district impacts that can be identified.

Coordination with other agencies implementing MAP-21 transit provisions. In order to

ensure compliance with MAP-21 requirements, the MBTA must coordinate with the Boston

Region Metropolitan Planning Organization (MPO). Outreach to the MPO is critical to select

appropriate performance measures for asset management and set realistic performance

targets.

Dialogue with the Federal Transit Administration (FTA). FTA will be a partner for the MBTA in

implementing asset management, and key implementing actions will be strong candidates for

discretionary and competitive funding sources. Regardless of whether FTA considers progress

in this field when evaluating applications for discretionary projects, FTA can be a source of

external validation and should be regularly briefed on progress and challenges.

Participation in statewide initiatives. In addition to the above strategies on which the MBTA

would be the lead, there are likely to be several forums in which MassDOT will have primary

responsibility, but that will also call for MBTA participation. The “Transportation Performance

and Asset Management Advisory Council” created in Section 12 of the state transportation

funding legislation is one such forum, but there may well be others as the new bill’s provisions

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are implemented. Close coordination with MassDOT will be advantageous as the message of

asset management is refined and delivered.

The MBTA’s implementation of the AMP will not always be easy to explain and in many key quarters

(both inside and outside the MBTA) support will not be automatic. But the habit of transparency that

has been building over the last several years will make it easier to communicate the benefits, the

challenges to be overcome, and the progress made.

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