Transportation Asset Management

1
Transportation Asset Management
Module 1 Welcome and Introduction
2
Introductions

• Instructors
• Participant introductions
• Name
• Organization
• Position

3
Course Learning Objectives

• Define transportation asset management
• Explain why it is important to your agency
• Discuss the framework and principles of
  assetmanagement as they apply to your agency
• Assess your agencys current assetmanagement
  environment
• Develop an asset management strategyand
  implementation plan
• Discuss asset management implementation strategies

4
Course Agenda
Management Framework 815 900 Self-Assessment 9
00 1000 Break 1000 1015 Resource
Allocation 1015 1115 Resource
Utilization 1115 1145 Lunch 1145
1230 Monitoring and Reporting 1230
100 Program Budget and Trade-Off Exercise 100
230 Break 230 245 Implementing a
Strategy 245 345 Conclusions and Wrap-Up 345
400
5
Course Ground Rules

• Reference Manual NCHRP Transportation Asset
  Management Guide
• Ask and answer questions candidly
• Parking lot will be used for questions
• Maintain a spirit of dialog be open to other
  points of view

6
Transportation Asset Management
Module 2 Asset Management Framework and
Principles
Ref Asset Management Guide Chapters 1 and 2
7
Learning Objectives

• Define transportation asset management what is
  it?
• Describe the principles of good asset management
  practice
• Discuss the benefits of asset management for
  youragency why do it?
• Discuss the four key areasof the asset
  management framework
• Explain the characteristics of good
  practiceimportant to each area

8
What Is Transportation Asset Management?
A strategic approach to managing transportation
infrastructure
9
Principles of Asset Management

• Asset management entails
• A strategic view
• A set of processes
• A set of technical tools

10
Strategic View

• Policy based options and consequences are
  considered in terms of consistency with adopted
  goals and objectives
• Performance driven options and consequences are
  considered in terms of ability to achieve desired
  outcomes
• Comprehensive looking at all facets of a
  problem, and considering options and consequences
• Long term over an extended time period (e.g.,
  over the life cycle of an asset)

11
Benefits of Asset ManagementWhy Do It?

• Systematic approach to defining needs and options
• Improved use of available resources
• Improved credibility and accountability for
  decisions
• Improved performance and service to customers
• Flexibility to make decisions based on
  performance
• Improved communication and collaboration within
  agency

12
From Front Office to the Front Lines
Strategic Information
Stakeholders
Agency Executives
District / Division Managers
Section / Group Managers
Tactical Information
Agency Central Office and Field Staff
Coordination Across Agency Units
13
State DOTs are Unique

• No single, correct approach to asset management
• But there are useful perspectives for all
  agencies
• Improvement can begin today with existing staff
  and resources
• Agencies now doing good asset management can
  improve
• Organizational and institutional factors pose
  biggest challenges

14
National Asset Management Scorecard

• States Doing No
• Asset Management

States Doing 100 Percent Asset Management
15
Focus of Asset Management
At its Core, Asset ManagementFocuses On
Resource Allocation and Utilization
16
A Resource Allocation and Utilization Process
Policy Goals and Objectives
Planning and Programming
Quality Information and Analysis
Program Delivery
Systems Monitoring and Performance Results
17
Formalizing a Management Framework

• Refer to management matrices in Guide, Chapter 2
• Organized around four functional areas of asset
  management
• Policy, goals, and objectives
• Planning and programming
• Program delivery
• Information and analysis
• Each matrix includes
• Basic characteristics of good asset management
• Specific evaluation criteria
• State-of-the-art benchmarks

18
Policy Goals and ObjectivesCharacteristics of
Good Practice

• Goals and objectives reflect a comprehensive,
  long-term view of asset performance and cost
• Goals and objectives call for good stewardship of
  assets
• Policies reflect a performance-driven approach to
  resource allocation
• Agency proactively helps formulate asset
  management policy

19
Example from Policy Goals and Objectives Matrix

• 1. Goals and objectives reflect a comprehensive,
  long-term view of asset performance and cost

State-of-the-Art
Criteria
Defined goals and objectives
Goals and objectives are comprehensive,
integrated with other policies, and supported by
performance measures
Asset management is catalyst for decision and
action
Asset management principles are clearly
articulated and recognized as driving force for
resource allocation
Life-cycle perspective
Goals and objectives embody life-cycle economic
analyses and encourage strategies with long-term
benefits
20
Planning and ProgrammingCharacteristics of Good
Practice

• 1. Planning and programming procedures are
  consistent and reinforce goals and objectives
• 2. Agency considers a range of alternatives for
  addressing system deficiencies
• 3. Performance-based concepts guide planning,
  programming, and monitoring
• 4. Tradeoffs are based on relative merit and
  understanding of comparative costs and
  consequences

21
Example from Planning and Programming Matrix

• 3. Performance-based concepts guide planning,
  programming, and monitoring

Criteria
State-of-the-Art
Recommended program budgets relate costs to
levels of service or performance measures
Performance-based budgeting
Benchmark achievement
Planning and programming processes identify
resources required to maintain existing assets at
target performance levels and least life-cycle
cost
System monitoring Reporting
System monitoring helps quantify impacts of
program decisions and provides feedback for
future planning and programming Progress toward
performance targets is measured and reported
regularly
22
Program DeliveryCharacteristics of Good Practice

• Agency considers all available delivery methods
• Agency tracks program outputs and outcomes
• Agency reports program delivery accomplishments
• Approved program is delivered efficiently and
  effectively

23
Example from Program Delivery Matrix

• 4. The approved program is delivered efficiently
  and effectively

State-of-the-Art
Criteria
Delivery measures
Measures are defined and tracked to gauge
successful program delivery in scope, cost, and
schedule
Project and program adjustments
The agency has a process to review and approve
project changes and resulting program adjustments
24
Information and AnalysisCharacteristics of Good
Practice

• Agency maintenance high-quality information
  needed to support asset management
• Agency collects and updates data cost-effectively
• Information is automated and on accessible
  platforms
• Effective decision-support tools are available
• Financial value of assets is known

25
Example from Information and Analysis Matrix

• 1. Agency maintains high-quality information
  needed to support asset management

Criteria
State-of-the-Art
Agency maintains complete, current, and accurate
inventory of assets
Asset inventory
Asset condition
Condition data are updated periodically to meet
regulatory requirements and provide timely and
accurate information to decision-makers
Customer perception
Data on customer perception of asset condition
and agency performance are updated regularly
Information on actual cost and accomplishment is
tracked to be able to improve cost estimation
Program outputs
26
Applying the Framework to Your Agency

• Asset management is adaptable to different agency
  situations
• Organizational structure
• Management culture
• Funding environment
• Technological capability
• Fundamentals of asset management generally
  applicable to all agencies
• Implementing asset management customization and
  tailoring to be expected

27
So is Asset Management a Fad?

• Can we defend not being strategic not being
  comprehensive, long-term, policy-driven,
  performance-based?
• Can we defend not considering options and
  tradeoffs?
• Can we defend not setting performance goals and
  not measuring results?
• Can we defend not being in the strongest position
  to justify our requests for resources?

28
Questions?
29
Transportation Asset Management
Module 3 Agency Self-Assessment
Ref Asset Management Guide Chapter 3
30
Module 5 Learning Objective

• Complete the self-assessment survey for your
  agency
• Recognize differences that may exist among
  agencies
• Recognize potentially differentperspectives of
  managersin a single agency
• Discuss implications of differentresponses

31
Self-Assessment Objectives

• Develop consensus among managers on status of
  asset management
• Identify asset management
• Strengths
• Weaknesses
• Constraints
• Opportunities for improvement
• Develop priorities and identify critical areas
• Foundation for asset management improvement
  strategy

32
Self-Assessment Overview

• Quick diagnostic tool
• Gain an overall impression, not a precise
  analytic measure
• Results will reflect your agencys environment
• Institutional
• Organizational
• Financial
• IT
• Not a meaningful basis for state-to-state
  comparisons

33
Self-Assessment Survey

• List of statements
• Organized around four areas of asset management
• Declarative statements e.g., Our agency
  conducts life cycle cost analyses for project
  alternatives
• Rank your agreement with each statement from 4 to
  1
• 4 indicates strong agreement
• 1 indicates strong disagreement

34
Recommended Self-Assessment Process

• 1. Appoint leader
• 2. Establish core group
• 3. Complete assessment form
• 4. Compile responses
• 5. Discuss results
• 6. Identify asset management priorities for
  improvement

35
Self-Assessment Exercise
36
Transportation Asset Management
Module 4 Resource AllocationTechniques and
Examples
Ref Asset Management Guide Chapters 5 and 6
37
Learning Objectives

• Describe how asset management can improve
  policy-making
• Explain why asset management encourages a
  proactive agency role in policy formulation
• Describe the best practices in planning and
  programming as they relate to asset management
• Discuss how these principles translate to
  specific approaches and techniquesin resource
  allocation

38
Policy Goals and Objectives
Policy Goals and Objectives
Planning and Programming
Quality Information and Analysis
Program Delivery
System Monitoring and Performance Results
39
Asset Management Improves Policy-Making

• Broaden thinking about potential transportation
  solutions
• Relate policy statements to performance
  objectives
• Embody more analytic, objective information in
  policy-making
• Connect policy to process

40
ExamplePavement Preservation

• Policy goal
• Preserve pavement condition and performance
• One of several policy objectives
• Provide users with a smoother ride
• Performance measures that align with objective
• Measures of pavement ride quality or
  serviceability
• Performance target
• Increase percent of pavement in good condition
  with respect to ride quality from 75 percent to
  85 percent by the year 2005

41
Proactive Role in Policy FormulationExternal

• Agencies should engage Legislature, Commission or
  Board, Governors office, other stakeholders
• Have an impact on external bodies that shape
  policies
• Frame and inform policy options
• Focus policy makers and elected officials on key
  policy choices
• Maintain the policy-based context
• Reinforce accountability through information
  dissemination

42
Proactive Role in Policy FormulationInternal

• Include all internal stakeholders in policy
  development process
• Units responsible for achieving performance
  objectives need to understand and support those
  objectives
• Involvement in policy-making process can
  encourage broader thinking about range of
  solutions available

43
Asset Management Provides an Opportunity to
Connect Policy to ACTION
44
Planning and Programming
Policy Goals and Objectives
Planning and Programming
Quality Information and Analysis
Program Delivery
System Monitoring and Performance Results
45
Long-Range Planning and Needs Identification

• Various documents produced by Planning
• Policy-based or project-based plans
• Corridor studies
• Major project studies
• All can reflect good asset management practice
• Incorporate best practices within existing
  long-range planning procedures

46
Elements of Good Practice

• Planning reflects clear policy objectives and
  performance expectations
• Realistic revenue forecasts and evaluation of new
  funding options or levels of funding where
  appropriate
• Consideration of a range of investment, program,
  and modal alternatives
• Planning-level tradeoff analyses across modes,
  programs, or investments
• Use of analytical tools to analyze options and
  scenarios in terms of cost and performance
• Coordination with regional and local planning

47
Example Technique Used in Planning

• Colorado DOTs Program Investment Category
  Structure
• Relates transportation programs to major policy
  goals
• Includes capital and maintenance and operations
  programs
• Performance measures are defined for each Program
  Investment Category
• Can be used by CDOT and CO Transportation
  Commissionin planning, programming, tradeoff
  analysis, and resource allocation

48
Example Investment Category Framework
INVESTMENT CATEGORIES
Strategic Projects
System Quality
Goals, Objectives, and Performance Measures
Analysis of Options Within and Between Categories
Safety
Mobility
Program Delivery
Source Colorado DOT
49
Example Budget-Performance Relationships
Infrastructure Condition
Annual Preservation Budget
Mobility Improvement
Annual Mobility Budget
50
Best Practices in Capital Programming

• Programming methods and criteria reflect policy
  objectives
• Consideration of full range of alternatives
• Consideration of economic principles and other
  factors
• Realistic project scope, cost, and schedule
• Program tradeoff analyses
• Supported by analytical tools and data

51
Projects and Programs

• Different levels of analysis and tradeoffs
• Project prioritization
• Program tradeoffs
• Full range of alternatives evaluated based on
  merit at each level
• Project and program-level consideration interact
  during program building
• Incorporate best practices within existing
  procedures
• STIP development
• Program budget recommendation

52
Program Tradeoffs

• Before finalizing program funding targets,
  consider alternatives across programs
• Objective what are performance impacts of
  shifting funds from one program to another?
• Same analysis can be applied for evaluating
  increases or decreases in total funding levels

53
Tradeoffs in Program Funding Alternatives
54
Example Tradeoff Analysis
Proposed Preservation Funding and Resulting
Performance
Proposed Mobility Funding and Resulting
Performance
Stages ofTradeoff Analysis
200 million80 of facilities rated Good
500 million10 reduction in travel time costs
Baseline
(200M less 15M) 185 million77 of
facilities rated Good
(500M plus 15M) 515 million11 reduction in
travel time costs
First Tradeoff Iteration
(200M plus 15M) 215 million82 of
facilities rated Good
(500M less 15M) 485 million8 reduction in
travel time costs
Second Tradeoff Iteration (opposite direction)
55
Best Practices in Maintenance Programming

• Knowledge of system condition
• Alternative strategies
• Application of maintenance levels of service
  (LOS)
• LOS values reflect policy goals and objectives,
  customer perspectives, and available resources
• Performance-based maintenance programs tied to
  LOS
• Performance outcomes measured, reported, analyzed
  as input to future strategies, tradeoffs, and
  programs

56
Asset Management and Geographic Equity

• Geographic-based funding distributions exist in
  many agencies
• Agreements with regional and local agencies
• Hold harmless arrangements with regions or
  districts
• Legislative or Commission desires for equity
• Geographic formulas based on relative needs
  indicators
• Geographic constraints are a political fact of
  life
• Better to acknowledge geographic distributions
  explicitly rather than bury or rationalize them
• Maintain performance-based perspective where
  possible
• Use surrogate performance indicators as
  geographic allocation factors
• Implement asset management principles as much as
  possible

57
Program Structure

• An effective program structure allows an agency
  to map its policies to investment decisions
• Characteristics of good practice
• Well-defined programs, subprograms, categories
• Meaningful, easily communicated types of work
• Flexibility in identifying options and
  facilitating trade-offs
• Avoidance of sacrosanct programs
• Enforcement of program structure

58
Questions?
59
Transportation Asset Management
Module 5 Resource UtilizationTechniques and
Examples
Ref Asset Management Guide Chapters 7 and 8
60
Learning Objectives

• Explain an asset management approach to program
  delivery
• List asset management information needs
• Discuss how your agencys systems and data may
  better support asset management

61
Program Delivery
Policy Goals and Objectives
Planning and Programming
Quality Information and Analysis
Program Delivery
System Monitoring and Performance Results
62
Program Delivery

• Program delivery includes managing implementation
  of
• Capital programs
• Maintenance
• Operations
• Entails a resource utilization aspect of asset
  management

63
Program Delivery Objectives

• Adherence to schedule
• Control of scope
• Keeping costs within budgets
• Improving cost estimation
• Achieving desired quality
• Optimizing in-house versus outsourcing

64
Program DeliveryAsset Management Approach

• Programs and budgets are communicated and
  followed
• Systems are in place for controlling scopes,
  costs, and schedules
• Alternative program and project delivery options
  are considered and used
• Corridor approach to preservation projects is
  considered
• Efficiency and effectiveness of delivery systems
  are measured and reported

65
Intergovernmental Agreements

• Win-win agreements between state and local
  agencies
• Advantages
• Cost savings
• Elimination of duplicate efforts
• Increased services
• Example Pennsylvania DOTs Agility Program
• 1,500 local partners
• Estimated savings of 7.7Min first four years

66
Options in Outsourcing Preservation / Maintenance
Services

• Multi-Function vs. Activity-Based
• Route Basis vs. Area Basis
• Lump-Sum, Performance-Based vs. Traditional Unit
  Price
• Routine Maintenance vs. Total Preservation
• Low Bid vs. Best Buy
• Winter Weather Emergency Response Included
  vs. NOT Included

67
Managed Competition

• In-house staff competes with private sector
• Challenge to maintain level playing field
• Separating agency as bidder from agency as owner
• Computing actual in-house cost
• Performance or cost guarantees
• Example Iowa DOT paint striping and sign shop
• Example Massachusettsstatewide maintenance

68
Corridor Approaches

• Objective get in, get out, and stay out
• Maintenance projects
• Perform all anticipated near-term repair and
  utility work to avoid multiple road closures and
  impacts to users
• Capital projects
• Package small projects into largercorridor
  projects
• Important to coordinate with local agencies

69
Information and Analysis
Policy Goals and Objectives
Planning and Programming
Quality Information and Analysis
Program Delivery
System Monitoring and Performance Results
70
Information Systems Requirements

• Current asset condition and performance
• Projected asset condition and performance
• Cost estimation and reporting
• Needs identification
• Project, program, and network-level evaluation of
  proposed work
• Program delivery support

71
ExampleExisting Scenario Testing Capabilities
72
Derived Relationship Performance Versus Budget
73
Key IT Challenges

• Make best use of scarce data and IT resources
• Ensure data consistency
• Avoid data rich, information poor (DRIP)
• Ensure credibility of system outputs
• Move toward common geo-referencing
• Integrate data and systems with decisions
• Ensure resources are used by all decision-makers

74
Questions?
75
Transportation Asset Management
Module 7 Program Budgetand Tradeoff Exercise
76
Program Budget and Trade-off Exercise

• Distribute exercise
• Conduct exercise in groups
• Each group report results
• Discuss as a whole

77
Transportation Asset Management
Module 8 Developing anImplementation Strategy
Ref Asset Management Guide Chapters 4 and 9
78
Learning Objectives

• Discuss asset management scoping issues
• List potential areas of asset management
  improvement at your agency
• Discuss first steps towards improving asset
  management at your agency

79
Defining the Scope of Asset Management

• Which transportation assets?
• Which investment actions?
• Which business processes?
• Which asset management techniques?

80
Which Transportation Assets?

• Infrastructure asset classes e.g.,
• Roadway and structures
• Aviation (airside, landside)
• Ownership and operating responsibility
• State-owned and -operated assets
• State interest assets, intermodal connections
• Other methods of classification or tiering
• Urban versus rural
• Functional class, commercial versus civil
  aviation, etc.
• Usage AADT, freight, transit, etc.

• ITS
• Ferry, maritime

• Rail
• Transit

81
Which Investment Actions?

• Preservation activities
• Rehabilitation and repair projects
• Routine and preventive maintenance
• Capacity expansion
• New facilities
• Additions to existing facilities
• Operational improvements
• Spot locations e.g., intersection improvements,
  turning lanes
• System operation and management

82
Which Business Processes?

• Policy development
• Planning and programming
• Project development
• Program delivery
• Maintenance management and quality assurance
• Operations

83
Which Asset Management Techniques?

• Life-cycle analyses, consideration of user costs
  and benefits
• Strategic applications of asset management
  systems
• Tradeoff analyses across programs
• Advanced applications in data acquisition
• GIS as a platform for data integration
• Tracking of program costs and accomplishments
• Improved monitoring of system performance

84
Setting the Scope

• Agency issues
• 80/20 rule
• Buy-in and capabilities of responsible parties
• Availability of data and analytical tools
• Appropriate level-of-effort
• Schedule
• Legislative or institutional constraints

85
Components of an Asset Management Implementation
Plan

• Scope of the effort
• Roles and responsibilities (including champion)
• Cost and schedule
• Detailed work plan
• Basis for monitoring progress

86
Implementing the Plan

• No single correct approach to getting started
• What would be your agencys approach to improving
  asset management?

87
Developing Your Implementation Plan

• Which assets should your agencys asset
  management efforts address?
• Which actions?
• Which business processes?
• Which asset management concepts should be
  applied?
• What is the single most important area for
  improvement?
• What steps could be taken to improve in this area?

88
Transportation Asset Management
Module 9 Conclusions and Wrap-Up
89
Points to Walk Away With

• What is transportation asset management?
• How can it help you?
• What is required for implementation?
• How can you get started now?

90
What is Transportation Asset Management?

• A strategic view
• A set of resource allocation and utilization
  processes
• A set of technical tools

91
How Can it Help You?

• Systematic approach to defining needs and options
• Improved use of available resources
• Improved credibility and accountability for
  decisions
• Improved performance and service to customers
• Flexibility to make decisions based on
  performance
• Improved communication and collaboration within
  agency

92
What is Required for Implementation?

• Strong executive support
• Willingness to assess current situation and
  improve
• Buy-in by managers and staff at all levels
• Inter-disciplinary perspective
• Sustained, consistent, multi-year commitment

93
How Can You Get Started Now?

• No single, correct approach to asset management
• Implementation can be incremental, accomplished
  in stages
• Use the results of self-assessment exercise as
  basis for moving forward

94

• Questions?

95

• Please complete the course evaluations if you
  havent already done so

Thank you!