Asset Management Taking the Next Step

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Asset Management-Taking the Next Step -
presented at 4th National Transportation Asset
Management Workshop MRUTC Madison,
Wisconsin presented by Tony Kane,
Director Engineering and Technical
Services AASHTO September 24, 2001
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What is Transportation Asset Management?

• A strategic approach to managing transportation
  infrastructure

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What is Transportation Asset Management?

• A philosophy
• Long-term view
• Comprehensive
• Proactive
• A process
• Investment choices, tradeoffs, decisions
• Organizational roles and responsibilities
• Improved horizontal and vertical communication
• A set of technical tools
• Management systems
• Integrated Data
• Specialized methods

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Driving Interest in Asset Management

• Aging infrastructure
• Resource limitations
• Financial
• Human
• Changing agency roles from production to
  operations, policy and management
• Increasing public expectations and use of system
• Information technology and advanced management
  systems
• Regulatory and political demands
• Performance measures
• Asset valuation

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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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Accomplishments

• 4 National Workshops since 1996.
• Numerous Organizations have held Meetings to
  investigate Asset Management (CERF, APWA, ASCE).
• FHWA has established an Office of Asset
  Management.
• AASHTO establishment of Task Force on
• Transportation Asset Management in 1998,
• and adoption of Strategic Plan in 2000.
• Establishment of a TRB Task Force in 2000.
• GASB 34 Workshops held.
• NCHRP Project to Develop First-Generation
  Asset Management Guide begun in
  1999.
• NCHRP Project to research new tools in 2001.
• Joint web site is being established.

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AASHTO Strategic Plan
Goal 1 Develop Partnerships 4
strategies Goal 2 Develop An Understanding
7 strategies Goal 3 Promote Tools and
Research 8 strategies Goal 4 Inform Member
States on Use 2 strategies Goal 5 Assist
Member States 4 strategies
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Keys to Success

• Promote sustained political commitment.
• Provide executive leadership.
• Commit resources at the State and National Level.
• Facilitate sharing between States.
• Pool organizational resources between AASHTO,
  TRB/NCHRP, and FHWA.

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Hallmark
The Hallmark of Asset Management is our
commitment, as the nations transportation
leaders, to strive continuously and collectively
to improve the way we manage the transportation
systems in the United States.
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NCHRP 20-24(11) - Activities to Date

• Review of current asset management practices in
  the public and private sectors
• State DOTs
• Interviews with New York, Colorado, Arizona,
  Washington State, California, and Michigan
• Literature review of other work, conferences,
  surveys
• Organization for Economic Cooperation and
  Development
• United Kingdom English Highways Agency
• Reports and handbooks by Australia and New
  Zealand
• Selected private-sector industries practices

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NCHRP 20-24(11) - Activities to Date

• Development of an asset management framework
• Definition of asset management
• Review of methods to describe and rate management
  processes
• Development of rating matrices
• Recommendations for asset management research
  program

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Principles of Asset Management

• Comprehensive view of assets (highways, bridges,
  ITS, etc.)
• Long-term (life-cycle) view of asset performance
  and costs
• Decisions driven by policy goals / objectives and
  system performance
• Tradeoffs among programs, modes, actions
• Projects and services delivered in most effective
  way available
• Quality information at all stages of process

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Types of Assets Included

• State-owned transportation infrastructure
  (typical)
• Roadways
• Bridges, other structures
• Operations hardware
• Associated features and facilities
• Transportation infrastructure in which state has
  an interest (on a case-by-case basis)
• Off-system roadways and bridges
• Railways (freight, passenger, transit)
• Intermodal facilities - ports, airports,
  terminals
• Pedestrian and bike paths

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Current State Practices

• Responsibility for different modes is fragmented
• Funding often constrained by mode and function
• Within highway organization - pavement, bridge,
  maintenance, and other organizational units are
  not integrated
• Management systems are stand-alone and of
  different vintages
• Senior management does not have access to
  sufficient quality information to make tradeoffs
  effectively

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Current State Practices

• System preservation versus new capacity, service,
  or system expansion
• Operations (ITS) versus capital improvements
• Investments across modes
• Passenger versus freight mobility
• Rural economic development versus urban
  congestion mitigation

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Key Challenges - Institutional

• Integrating decision-making and resource
  allocation across all asset classes
• Combining financial, management, engineering, and
  operational perspectives
• Defining system performance measures that reflect
  customer perspective and user costs
• Senior management support and leadership
• Developing new public and private sector roles
• Increased scope and complexity of
  responsibilities must be balanced against
  resource limits and imposed constraints

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Key Challenges - Technical

• Integrating legacy systems for different asset
  classes
• Developing comprehensive, GIS-compatible,
  enterprise-wide databases
• Creating next generation management systems that
  support wide range of what-if analyses
  reflecting different budget and performance
  assumptions
• Improving life-cycle analysis methods
• Strengthening transportation system monitoring
  capabilities