Management System Integration for Asset Management:

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Management System Integration for Asset
Management

• Sue McNeil
• Director
• Urban Transportation Center
• University of Illinois at Chicago

Northwestern University November 2000.
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Outline

• Definitions
• Management Systems
• Asset Management
• Management System Integration
• Asset Management - Background

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Definitions

• Management systems
• Asset management
• Management system integration

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What are management systems?

• Bridge management
• Pavement management
• Congestion management
• Maintenance management
• Intermodal management
• Safety management
• Sign management
• Signal management ..

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Definitions Pavement management

• pavement management in its broadest sense
  encompasses all activities...A pavement
  management system is a set of tools or methods
  that assist decision -makers in finding optimum
  strategies for providing and maintaining
  pavements in a serviceable condition over a
  given period of time.

NCHRP Report 215, 1979.
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What is comprehensive BMS?

• An integrated collection of
• organizational roles
• procedures
• data
• analytical tools
• computer programs
• support services

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BMS Capabilities

• Determine bridge needs
• Optimize funding allocation and project
  scheduling with budget constraints
• Develop persuasive funding requests
• Perform what-if analyses and policy analysis
• Monitor condition

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Overall BMS Structure
Prediction Models
Cost Models
Database
Improvement Optimization
Preservation Optimization
Program Integration
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What is asset management?

• Asset management is a systematic process of
  maintaining, upgrading and operating physical
  assets cost-effectively. It combines sound
  business practices and economic theory, and it
  provides tools to facilitate a more organized,
  logical approach to decision- making. Thus,
  asset management provides a framework for
  handling short- and long-range planning.

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Management System Integration

• The set of activities undertaken by an agency to
  insure that the tools, processes and decision
  making involving its asset bases are coordinated
  and connected.

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Asset Management Background

• Why is it important
• Overview and status

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Why is asset management important ?

• Enables an agency to support and justify
  legislative budget requests.
• Maximizes the benefits from available funding.
• Shows the trade-offs of alternative investment
  strategies.
• Supports decision making and enhances
  productivity.
• Facilitates decision making using readily
  available quantitative and qualitative
  information.
• Enables appropriate resource allocation and asset
  optimization.

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Why is Transportation Asset Management so
Important Now?

• 1 Trillion Investment in Highways
• Shift from Construction to Preservation
• Aging Infrastructure
• Increasing Traffic Growth
• in Movement of Goods
• Reinventing Government
• Performance Management
• Accountability
• Information Age

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Overview and Status

• Asset management goals/attributes
• Asset management components
• History
• Status of asset management in the United States
• So why do State DOTs need asset management?

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Goals

• To provide ready access to quantitative and
  qualitative data
• To facilitate decision making based on data
• To utilize principles drawn from economics,
  accounting, risk management, and customer service
  models
• To ensure efficient resource allocation and asset
  optimization

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Attributes Required to Realize Benefits

• Common performance measures and criteria
• User-friendly environment
• Customer focus
• Accessibility within agency
• Flexibility
• Link to technical, management, and budgetary
  processes
• Exchange of information

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Quantifiable Objectives

• Enhance knowledge of inventory and asset value
• Develop links that tie resource allocations to
  savings from replacement
• Establish standardized processes and protocols
• Consider life-cycle costing

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Benefits of AMS

• Improve program quality
• Improve information and access to information
• Facilitate economic assessment of various
  tradeoffs
• Improve documentation of decisions
• Improve information on return on investment and
  value of investments
• Reduce short-and long-term costs

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Asset Management Concepts and Components

• Concept
• Components
• Framework
• Inventory, location, database, analysis and
  reporting

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Asset Management Concept
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Asset Management Concept
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Components of an AMS

• Asset inventory
• Location/Asset Referencing System
• A centralized database
• Analysis tools
• Reporting tools

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Generic Process
Data Collection
Performance Modeling
Development of Alternatives
Decision-Making Program Development
Feedback
Implementation
Monitoring
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Framework for AMS
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Asset Inventory System

• Identification of assets included
• Inventory of basic characteristics
• Assessment of asset conditions
• Estimate of asset age

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Pathways Video Inspection Vehicle
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Pavement View
Shoulder View
Front View
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Accelerometers in Wheel Paths Right Left
Laser Sensors
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Pathways Workstation
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Shoulder
Perspective
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Location/Asset Referencing System

• Geographic location
• Reference system
• Identifiers for equipment

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Central Database

• Contains inventory information
• Facilitates exchange of information

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Other Strategies for Data Access

• Specialized modules
• Outreach

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Analysis Modules

• Forecast of Future Conditions
• Impact Analysis of Various Scenarios

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Reporting Modules

• Presentation of Inventory Information
• Presentation of Analysis Results
• Formats
• Graphics
• Tables
• Maps

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Asset Management versus Managing Assets
History Survey -
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History

• 1970s - pavement management
• 1980s - bridge management
• 1990s - asset management

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Background

• Recognition of common characteristics
• Projects/ components are parts of networks
• Long time horizons
• Presence of trade-offs
• Indivisibility
• Variability in space and time

• Subject to design standards
• Subject to deterioration
• Subject to uncertainty
• Exhibit many modes of failure
• Hierarchical decision process

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History

• 1991 - ISTEA
• 1994- Road Asset Management Guideline - Austroads
• 1995 - Report on Current Practice - Australia
• 1996 - AASHTO/FHWA Workshop - Public Private
  Perspectives

• 1997 -
• AASHTO/FHWA Workshop - The Future
• AASHTO Task Force formed

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History

• 1998
• New York State - Concept Plan
• AASHTO Task Force Strategic Plan
• TAC - Primer on Highway Asset Management
• APWA - Asset Management for the Public Works
  Manager
• 1999
• FHWA - Office of Asset Management formed
• OECD Asset Management Systems Working group
• FHWA/AASHTO Workshop (December)

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Status of Asset Management in the United States

• Survey Questions
• Inventory of Assets
• Investment Decisions
• Workshop Agenda
• Responses

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Survey QuestionsInventory of Assets

• Asset management responsibilities and contacts
• Inventories and condition by type of asset
• Management systems and performance by type of
  asset
• Asset valuation

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Survey Questions Investment Decisions

• Integration with management systems
• Decision-making tools for investment
• How tools are used
• Use of tools across modes
• Analysis to make allocations to capital versus
  maintenance
• Quantitative evaluation of capital, operational
  or maintenance expenditures needs to improve
  performance
• Comparison of effectiveness of investments
• Relationship of budget expenditures to system
  performance
• Mechanisms to provide feedback

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SURVEY RESPONSES
Received responses from shaded states
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Survey Responses (CONTINUED)

• Number of Responses -- 33
• Points of Contact for Asset Management
• none -- 12, one -- 13, more than one -- 8
• States with Inventories -- 33
• average per state -- 9
• inventories with conditions -- 66
• States with Management Systems -- 32
• average per state -- 7
• inventories with performance indicators -- 70

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SURVEY RESPONSES(CONTINUED)

• States with Inventories -- 33
• average per state -- 9
• percent of inventories with conditions -- 64
• Predominant Inventories (with conditions)
• bridge -- 33 (32)
• pavement -- 32 (32)
• road and highways -- 32 (24)
• traffic signals -- 27 (15)
• grade crossing -- 25 (16)

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SURVEY RESPONSES(CONTINUED)

• States with Management Systems -- 33
• average per state -- 7
• percent of inventories with performance
  indicators -- 70
• Predominant Systems (with performance)
• pavement -- 33 (30)
• bridge -- 33 (30)
• safety -- 26 (17)
• maintenance -- 25 (17)
• traffic monitoring -- 23 (11)

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SURVEY RESPONSES(CONTINUED)

• Apply tools across modes -- 7
• Analysis to allocate capital vs. maintenance --
  10
• CBA of major maintenance expenditures -- 11
• CBA for operational improvements -- 11
• Evaluate how expenditure improves system -- 17
• Relate budget expenditures to system performance
  -- 22
• Automatic updating of systems based on
  expenditures -- 13

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Survey Responses -Conclusion

• Many states have elements of asset management
• for specific types of assets
• for specific activities
• Examples include
• Performance based programming
• Integrated maintenance management
• Integrated management systems
• Preservation and improvement tradeoffs

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Why do State DOTs need asset management?

• Aging infrastructure
• Preservation, and good business practices provide
  a foundation
• Customer focus means a shift in emphasis from
  outputs to performance
• Demand for better accountability
• Magnitude of the investment
• Asset management is a vehicle for delivering

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Premises

• One size does not fit all
• Champions are needed
• Dependent on a corporate database
• Builds on content, concepts and substance of
  other management systems
• Recognize that organizations have frequent
  leadership changes, and need to develop a means
  for continuity in asset management

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Common Thread

• Performance

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Performance What is it?
Operational indicators e.g miles of
road accidents, roughness
Mission smooth, safe, economic and efficient
road systems

• Link between the user and the physical asset

Stakeholders service providers private and
commercial road users, policy makers
regulators
Modified from Paterson and Humplick
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Performance Why is it important?

• Fundamental concept
• Provides link to decision making
• Critical to identifying the true value of assets
• Foundation for performance based planning

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Performance What have we learned?

• For example, Minnesota
• Three areas
• System performance
• Public values/issues
• Organizational Performance

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Performance Minnesota -

• System Performance
• Time/ Directness
• Safety
• Condition of infrastructure
• Access/ Basic service levels
• Public values/issues
• Environment
• Socioeconomics

• Organizational Performance
• Performance/ Productivity
• Progress towards targeted focus areas

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Performance What are the issues?

• Good data
• Consistent and continued application
• Customer input
• Benchmarking
• Not the answer

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Examples How asset management is used

• New York State
• Washington Montana

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NYSDOTs Program Update Process

• Tradeoff analysis
• Using forecasts to set program goals and
  allocations
• Examples

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NYSDOTs Program Update Process

• Executive Level Review
• Looking across programs and regions
• Direct result of asset management.

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Washington State DOT

• Use asset management for 20-year forecasting of
  revenues and costs
• Example

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Highway System Plan
1999-2018 (1997 Billion )
20 Year Revenue Scenarios
0.0
41.0
11.4
18.3
PPSC 6/17/97
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Montana DOT

• Similar budget to some counties
• Asset management is part of the performance
  planning process
• Examples

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Performance Programming Annual Cycle
Updated 5 years
POLICY DIRECTION FROM STATEWIDE PLAN
Policy Module

DEC.
PERFORMANCE OBJECTIVES
RESOURCE CONSTRAINTS
INVESTMENT ANALYSIS
Funding Plan Module
FUNDING PLAN APPROVAL

APRIL
SYSTEMS PERFORMANCE QUERY TOOL
PROJECT NOMINATION
Program Development Module
TECHNICAL REVIEW
PUBLIC COMMENT
STIP APPROVALS
AUG.
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Funding Plan Module
Investment Analysis
Performance Objectives
Resource Constraints
Funding Plan
GOAL A matrix with sufficient detail to allow
various roll-ups with funding either Directly or
Proportionately based on Performance
Example
Recon to address Capacity
Recon to Geom Design stand.
Rehab /Recon Bridge
NHS STRATEGY Financial District
Rehab
Pav Pres.
Safety
Misc.
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Issue

• How do we structure an environment in which what
  if questions can be explored?

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Possible Solution

• Simulation tools
• Forecasting tools

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Issue

• The ability to collect data outstrips our ability
  to analyze it.

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Possible Solution Data Mining and Knowledge
Discovery

• Classification algorithms
• Clustering algorithms
• Dependency modeling algorithms
• Summarization algorithms
• Deviation detection algorithms

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Example

• MN Road Weigh in motion data
• Michigan spent 8 years and millions of dollars
  integrating data
• Are there patterns?
• Are there correlations?
• Are there locations where odd behavior/
  performance is observed?

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Issue

• Access to distributed data

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Possible solution A web-based information broker
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Issue Data

• Gaps
• Duplication
• Many different levels of aggregation

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Possible Solution Redesigning the Data
Collection Process
Information
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Management System Integration

• How does it fit?

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Management System Integration Issues

• For example
• How does pavement management fit in?
• OR
• What role does pavement management play in each
  of these examples?

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Pavement management

• Input to asset management
• Source of data
• Base of experience
• Complement to asset management

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Questions?

• How much should you spend on signs versus
  equipment?
• How much should spend on maintenance versus
  expansion?
• What resources will you need 10 years from now?

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Lessons learned from PMS

• Recognition of classes of users
• Elected officials
• Budgets
• Impacts
• Future funding
• Administrators
• Data
• Priorities
• Current status
• Impact of changes (budget)

• Technical staff
• Data
• Analysis methods and procedures
• Models
• Ability to include new technology

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Summary

• Asset management is not a new concept
• Asset management is not a substitute for pavement
  management
• Asset management is broader than pavements, or
  bridges, or signs other types of
  infrastructure, all phases of the life cycle.
• Asset management uses the same principles as
  other management systems
• Asset management focuses on the network level
• Asset management is not a system, it is a
  framework or concept.

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Resources

• APWA
• FHWA Office of Asset Management

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Coming soon.

• Synthesis of current practice (NCHRP project)
• Asset Management guide
• Training

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Still needed...

• Tools to support asset management
• Educational programs
• Good examples of successful efforts

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Asset management is what you make it!