asset management peer...

Asset Management Peer Exchange

Rollout & Implementation of the Transportation Asset Management Guide Volume 2

NCHRP Project 0869

AASHTO Spring Meeting: Natchez, Mississippi

May 19, 2010 Spy Pond Partners

Welcome

Michael Bridges: Undersecretary of Transportation, Louisiana DOT, and Chair of NCHRP Panel for Project 0869

Neil Pederson: AASHTO Subcommittee on Asset Management

Research team members presenting today

Paul D Thompson, Colorado

George JasonSmith, AECOM, NZ

Mark Gordon, AECOM, NZ

Hyun-A ParkSpy Pond Partners, Boston

Spy Pond Partners

Workshop Agenda

Introduction and TAM Guide Overview Mark Gordon

Session 1: Why Transportation Asset Management Mark Gordon

Session 2: Getting Started Hyun-A Park

Session 3: Transportation Asset Management Plan George JasonSmith

Session 4: Putting TAM into practice Paul Thompson

Group Discussion FHWA

Wrap up and next steps Michael Bridges

INTRODUCTION AND TAM GUIDE OVERVIEW

Project NCHRP 0869 objectives

• Supplement AASHTO’s TAM Guide Vol.1 with a second volume that focuses on establishing and executing TAM programs in transportation agencies, with particular attention to highway assets.

• Document the benefits of TAM.

• Provide additional guidance for implementing asset management concepts, principles, performance targets, strategies, tools, analysis methods, data collection, and application of management system information based on the framework presented in Vol. 1.

Include examples of:

• Use of tools for evaluating return on investment and improving economic efficiency, resource allocation, and budgeting decisions;

• Strategies for enhancing communication and information sharing among decision-makers and elected officials; and

• Ways that ERP systems can effectively support TAM.

Intended audience for TAM Guide

User groups:

• Federal Highways Administration

• State Departments of Transportation

• Local planning organizations, and transportation practitioners

• Decision makers

Other potential users:

• Consultants

• Software and tool developers

• Educators

• Researchers

Today’s Workshop

First steps in rolling out the TAM Guide – raise the profile at management level

Peer exchange – what DOTs are currently doing, and how the Guide could be used for the next steps

Recognize the role of executive leadership in implementing TAM agency-wide

Recognize that TAM implementation is a “journey” – the destination may be clear but the road can twist and turn

Perspectives on TAM

Transportation Asset Management is a strategic and systematic process of operating, maintaining, upgrading and expanding physical assets effectively throughout their lifecycle. It focuses on business and engineering practices for resource allocation and utilization, with the objective of better decision-making based upon quality information and well defined objectives.(NCHRP Report 632)

Management

Engineering

Economics

Finance

MarketingLeadership

Culture

…the business of infrastructure …

The importance of infrastructure

• Infrastructure underpins national economies and supports lifestyles

• It’s often taken for granted by the community until it fails• It represents a major investment by communities

progressively built up over a long period• It provides a platform for economic growth and social

development

The Guide is intended to stimulate strategic thinking about transportation infrastructure

• What do we want to accomplish, and why?

• Do we need to change the current business model to achieve these objectives?

• What resources are available to succeed in this mission?

• How do we measure success?

TAM Business Model – Five Core Questions

• What is the current state of my assets?

• What are my required levels of service and performance delivery?

• Which assets are critical to sustained performance delivery?

• What are my best investment strategies for operations, maintenance, replacements and improvement?

• What is my best long-term funding strategy?FHWA Multisector Asset Management brochure

How can the Guide be used?

• As a modular, resource document

• As a sequence of implementation steps

• For knowledge transfer and bridging the gaps

AASHTO TAM Guide Volumes 1 and 2 are interlinked

TAM Guide 2 road map – 14 steps to implementation …

Part One Part Two

… plus case studies

TAM is not a part of the business, it is the business

WHY TRANSPORTATION ASSET MANAGEMENT

Segment 1

Segment OverviewWhy Transportation Asset Management

1. Provides a key link to performance management

2. Improves service levels

3. Documents agency approach to addressing needs

4. Helps explain why funds are needed and provides accountability for effective use of funds

1. Link to performance management

Purpose of asset management:

To meet a required level of service, in the most cost effective manner, through the management of assets for present and future customers.(International Infrastructure Management Manual, NAMS, 2006)

Today’s Challenges

Growing Travel

Volume and Congestion

Aging Infrastructure

Networks

Increasing Use of

Technology to Solve Problems

Limited Financial

Resources

Growing Pressure Nationally and Locally for Performance

and Accountability

The TAM Guide will assist agencies meet the challenges

• Greater accountability to the public and funding agencies.

• Maximizing use of resources within a highly constrained funding environment.

• Linking investment levels to infrastructure condition and transportation system performance.

• Preserving assets and improving safety in the face of growing impacts and costs of asset deterioration.

• Public expectations for more sustainable transportation solutions.

Evolution of TAM in the US

Pavement Management Systems used in some agencies

Initiation of Pontis BMS effort by FHWA

A few custom bridge management systems in place

Program management approaches used by a few agencies

ISTEA, federal transportation authorization requires six management systems

FHWA creates Office of AM, AASHTO creates subcommittee on AMMany agencies initiate management system efforts – most with limited success

Interest in AM grows in state DOTs as they face growing needs and limited resources

AM Guide Vol. 1 project initiated

Performance management growing in importance – federal reauthorization, AASHTO SCOPM

ERP implemented with TAM integrated or at least architectedAM Guide Vol. 2 project initiated

Greater use of AM principles in everyday DOT activities – policy link to decisions, PMs, data mgtGreater use of pavement and bridge management systems in state DOTs

1980

’s19

90’s

2000

’s

Surface Transportation Authorization Act is coming

• Achieve national objectives

• Establish local transportation plans

• Improve project delivery

• Greater transparency, accountability, oversight, and performance measures

The TAM Guide is a resource for responding

• Clear federal role and national objectives

• Consolidate and simplify programs

• Performance standards and accountability measures

• Expand mobility and access for people and goods

• Improve livability and environmental sustainability of communities

• Improve efficiency of federal programs and delivery of projects

From the June 18 2009 Committee Blueprint

Linking strategic direction to performance management

2. Improves service levels

TAM Guide shows how to link outcomes to levels of service• A “bumpy road”?

• What mix do our customers want?

• What are they willing to pay for?

• What do we need to deliver to achieve them?

• How long will it take?

ConnectingN

etworks

Today

JourneyTim

e

Carrying m

oreFreight

Custom

erC

ost

Custom

erEngagem

ent

TravelInform

ation

Freight Ride

Com

fort

Environment

Aesthetics

Urban

Reliability

Safety

Neighborliness

Value forM

oney

Where to tomorrow??

Performance outcomesEfficient journey Enjoyable journey Safe journey

Some LOS examples

Customer Level of ServiceState Highways will:

Link to Customer Outcomes

Technical Identifier

Technical Levels of Service Performance Targets

Provide appropriate bridge side protection including approaches.

CV 3.1 Safety

Crash hazard protection

Compliant barriers on all bridge approaches and bridges and at other locations as detailed in the SH SMS Manual Edition 4 - March 2007 section 6..4 Barriers

Reducing trend in crashes where inadequate protection was a factorSide protection – number of non-compliant bridges, bridge approaches and other sites

Have at least two lanes and be two way in all but the most exceptional circumstances

CV 1.2 Journey timeCV 1.3 Carrying more freightCV 3.1Safety

Bridge width Two-lane two-way unless:Multi-lane approachAADT <1000 and two-lane bridge is uneconomic

Number of single lane two-way bridges. Target compliance level to be confirmed.

Some more LOS examples

Customer Level of Service

State Highways will:

Link to Customer Outcomes

Technical Identifier

Technical Levels of Service Performance Targets

Not have water pondingon the road making it unsafe for road users after rain

CV 3.1 Safety

Rutting Rut depth <=20mm 99% of network with rut depth less than 20mm

Have marked centre-lines, edge-lines, no-passing lines, edge marker posts and reflective raised pavement markers.

CV 3.1. Safety

Delineation Comply with Manual Of Traffic Signs and Markings, Traffic Control Devices Manual, and NZTA Specifications

Install audio-tactile profile markings where justified

100% compliance with MOTSAM, TCDM, and NZTA Specs

% of highway carriageway-sections with deficient delineation.

Target for profile markings to be developed

Customer research a starting point for levels of service

Levels of Service(Demand for quality, quantity etc)

Customer Values

Legislative Standards

Strategic Drivers

Customer ResearchOngoing review and

management of assetperformance and realization of

value deliveredAssess affordabilityand funding

options

Currentresourcecapability

Requiredresource

availabilityand

technology

Asset improvement

Assess Life -CycleAsset management Solutions to deliver

Operate & maintain

Replace / refurbish

Dispose

Non-asset solutions

value propositions

3. Documents agency approach to addressing needs, &4. Helps explain why funds are needed and provides accountability for effective use of funds

TAM covers a wide portfolio of assets

• Pavements• Bridges• Tunnels• Other structures such as retaining walls, culverts, sign structures, etc• Curbs, channels, dams, and drainage facilities• Barriers, railings, and medians• Road signs• Pavement markings• Traffic signals and control equipment• Intelligent transportation systems (ITS)• Street lighting• Sidewalks• Bicycle lanes and paths on the right of way• Parking facilities such as pay and display machines, parking meters • Rest areas• Maintenance buildings and equipment• Landscaping

TAM Guide shows how to tie funding to performance based outcomes

• TAM helps move away from formula based funding allocation to performance based

• TAM ties performance based levels of service to agency objectives- Define performance outcomes- Set LOS- Make program decisions- Optimize use of funds to achieve performance objectives

• Measurable outcomes that can be tied to the delivery of annual plans and programs

Funding and asset performance

0

200

400

600

800

1,000

1,200

Chip AC Pavement

Annu

al a

vera

ge (1

0yr)

leng

th tr

eate

d (k

m)

Treatment Type

Analysis A Analysis B Existing Programme

Recommended Level

0

1

2

3

4

5

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Perc

enta

ge o

f ne

twor

k w

ith

mea

n ru

t de

pth

> 10

mm

Year

Percentage of network with mean rut depth > 10mm

Scenario A Existing Programme

0

200

400

600

800

2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Def

erre

d Le

ngth

(km

)

Year

Deferred length of pavement renewal(Since 2003, and against Valuation Useful Life (50yrs)

renewal rate scenarios, km per annum Current 210 225 240 265 280

TAM Guide describes economic principles

• TAM recognizes the economic value of assets, economic consumption over time and intergenerational equity considerations.

• TAM targets economic efficiency using economic analysis techniques to optimize asset expenditure over the asset’s lifecycle.

• The agency plays a long-term role as “steward” of the assets

Financial stewardship: understanding the economic value of your assets

0

20

40

60

80

100

120

140

160

Pave

men

tSur

face

Traf

fic

Facu

lties

Pave

men

tLa

yers

Dra

inag

e

Cul

verts

(Con

cret

e)

Tunn

els

(Lin

ing)

Cul

verts

(Ste

el)

Ret

aini

ngW

alls

Brid

ges

(pre

192

0)

Brid

ges

(pos

t 192

0)

Assets

Ass

et L

ifecy

cle

(Yea

rs)

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Ann

ual D

epre

ciat

ion

($m

)

Asset Lifecycle Annual Depreciation

Minimize life cycle costs? Yes, but ….

Definition: To provide a desired level of service in the most cost effective manner for present and future customers

So we can’t minimise our whole of life costs until we know what service we are delivering. No service at all would give us the lowest costs!!

LOS?

LOS?

LOS?

Example: Moving the $$ goal posts – how to respond?

A perspective of one agency:

• Customer risk

• Customer expectations

• Lifecycle costs

Customer Expectations

Decreased Funding

Customer Risk

Customer

Risk Life Cycle

Costs

Life Cycle

Costs



Optimal Funding Constrained Funding

$

$ $

$ $

$ $ $

Customer

Risk

Life Cycle

Costs

Example: Scenario based approach to program development

Low expenditure: reduce operational and asset preservation costs• Risk exposure may increase, but safety must not be compromised.• Some LoS cuts acceptable, but no legislative requirements compromised.• Asset condition may deteriorate.• May result in deferred liabilities and increased whole of life costs.

Medium expenditure: hold to current levels, with trade-offs • No increase in risk.• Typically, levels of service retained.• Some asset deterioration may occur, but aiming to hold whole of life costs.

High expenditure: an expansion from current• Risk exposures reduced, safety enhanced.• Customer satisfaction and LOS improve.• Improved asset condition, whole of life cycle costs optimized in all areas.

TAM Guide shows how to realize the benefits

• TAM enables better use of existing funds – by better quantifying current and future performance and optimizing the agency’s decisions.

• TAM improves agency competitiveness for limited funds –by improving the agency’s credibility, and its knowledge of the long term needs of assets.

• TAM helps build constructive political relationships – by providing hard information that can be readily understood.

The TAMP is an accountability mechanism – linking strategy to performance measurement and program delivery

Using the TAM Guide – possible agency scenarios

1. Interested in how TAM can be of benefit – but not sure whether it’s worthwhile or what to do first.

2. Preservation / maintenance financial needs and new investment are poorly linked, organizational issues to address.

3. Want to be able to better allocate resources and funds over the long term

4. Have a small number of areas to focus on, for example, risk, performance measurement, predictive modelling, but not sure how to best tackle them

5. Have effective asset management systems in some areas (e.g. pavement management) – but aware of the need to have systems and data for other assets as well

6. Aspire to be best in the class

Questions to consider in break-out

What challenges do you expect to face with reauthorization and performance management requirements?

What performance measures are you currently using, and how are they linked to your agency’s mission and the levels of service provided to road users and customers?

In what ways can the TAM Guide assist you to address the following challenges and expectations?

• Greater accountability to the public and funding agencies

• Maximizing use of resources within a highly constrained funding environment

• Linking investment levels to infrastructure condition and transportation system performance

• Preserving assets and improving safety in the face of growing impacts and costs of asset deterioration

• Public expectations for more sustainable transportation solutions

Segment 1 Breakout Groups

Jillian BarberScott Bennett

Michael BridgesDeLania HardyAhmad JaberCharles Meyer

Marvin MurphyJanet Oakley

Thomas PrestashKenneth Sweeney

Kevin ChesnikGary EvansVince Latino

Jim McDonnellBen Orsbon

Francine Shaw-WhitsonJennifer Toth

Frank TramontozziDon VaughnRon Vibbert

Jeff BrillhartMissy CassidyCharlie Fielder

King GeeRoger Healy

Leslie MixPatricia Oliver-Wright

Neil PedersenChristine Reed

Richard Tetreault

John BartonJane BergerTom ColeStehen GajMatt HardyGrant LeviLacy Love

Gregory MayoRichard Savoie

Gloria Shepherd

Brian BlanchardMara CampbellKeith DamronTerry GibsonKen Kobetsky

Tracy Larkin-ThomasonJeff Pierce

Jacob PorterJ. "Butch" Wlaschin

Group 1 Group 2 Group 3

Group 4 Group 5

Workshop Agenda

Introduction and TAM Guide Overview Mark Gordon

Session 1: Why Transportation Asset Management Mark Gordon

Session 2: Getting Started Hyun-A Park

Session 3: Transportation Asset Management Plan George JasonSmith

Session 4: Putting TAM into practice Paul Thompson

Group Discussion FHWA

Wrap up and next steps Michael Bridges

GETTING STARTED

Segment 2

Getting Started – Segment Overview

• Assessing where you are

• Setting targets for what you want to achieve through your asset management program

• Figuring out what the gaps are

• Developing a strategy & scope for implementation

• Setting the stage for organizational change needed to support asset management

TAM Evolution in an Agency

Simple BCA, or other optimized decision making analysis, of asset investment options

Improvement planning

Predictive and optimization methods are used for determining scenarios for levels of service and applied for programming

IT systems for TAM are connected to business processes and decisions and are linked vertically from enterprise to individual units

Describing the levels of service currently provided by the network

Starting the AM Journey

Listing expansion and new construction

programs

Risk, and the identification of critical assets

Model AM Practice

Describing maintenance practices in broad outline

Listing replacement / rehabilitation programs

Some detail of the extent and composition of the assets being managed (e.g. asset inventories)

Assessment of current asset performance – using measured and elicited methods

Longer term financial forecasts

Asset performance measures are aligned with the corporate direction.

Corporate financial plans are derived from the Asset Management Plan and

these links are clear and easily followed.The process of continuous improvement is entrenched and evident.

Life-cycle management plans exist for each asset group and for some individual assets –

showing cost, performance, and risk outcomes.Measures of achievement of mission goals and

objectives are quantifiable, have written definitions, and are uniform across the agency.

Asset management practices and objectives are clearly derived from the corporate strategic plan.

BE

GIN

NE

RIN

TE

RM

ED

IAT

EA

DV

AN

CE

D

Integration with Decision Making

Strategic plan

Meeting financial responsibilities and

reporting requirements

Tactical plans

Operational plans

Levels of service

Policy

Customerservice

Humanresources

AssetManagement Financial Marketing

Satisfying planned growth and change

in infrastructure needs

Delivering effective and efficient

servicesOutcomes

TAM Improvement Path

TAM Practices Gap Analysis

• The process of continuous improvement is a feature of TAM at all levels of maturity

• The TAM improvement process is about closing the gaps, between - What needs to be done, the desired TAM objectives; and - Current levels of achievement

• The gap analysis tool is tactical - Greater level of detail than the self assessment- Results aggregate up to 6 key areas, expanding on Volume 1- More focus on TAM processes and lifecycle management- Uses the maturity scale at a greater level of detail

TAM Maturity Scale

• A broad characterization of agency evolution

• A way of grouping advancements that typically occur together

• A screening tool to identify likely next steps

• A short-hand way of classifying the audience

TAM Maturity Scale1. No effective support from strategy, processes, or tools. Lack of motivation to improve.

2. Recognition of a need, and basic data collection. Reliance on heroic effort of individuals.

3. Shared understanding, motivation, and coordination. Development of processes and tools.

4. Expectations and accountability drawn from asset management strategy, processes, and tools.

5. Asset management strategies, processes, and tools are routinely evaluated and improved.

Strategic Self Assessment (from Volume 1)

• Policy Goals and Objectives - How does policy guidance benefit from improved asset

management?

• Planning and Programming - Do resource allocation decisions

reflect good practice in asset management?

• Program Delivery- Are appropriate options

and management methods used to deliver the program?

• Information and Analysis- Do information resources

effectively support asset management policy and decisions?

Use of a Self Assessment to Get StartedUtah DOT

• Utah DOT began its asset management efforts with the Self Assessment exercise in the AASHTO Asset Management Guide – Volume I

• 48 employees reviewed a series of statements representing best practice and rated:- The degree to which they were consistent with current DOT

practices- The degree to which improvement in that area was desired

• After a detailed analysis of the results, the DOT developed a comprehensive asset management implementation plan

The content on this slide is from an FHWA presentation at the FHWA Regional Asset Management Conference on the Asset Management Domestic Scan

Use of a Self Assessment to Get StartedUtah DOTResponses to Question A6 – Policy guidance on resource allocation allows Utah DOT sufficient flexibility to pursue a performance-base approach.

0%

20%

40%

60%

80%

100%

SeniorManagement

Regions Asset Groups Planning, ITand AM

Perc

ent o

f Pos

itive

Res

ponc

es

Ex isting Desired

0%

20%

40%

60%

80%

100%

SeniorManagement

Regions Asset Groups Planning, ITand AM

Perc

ent o

f Pos

itive

Res

ponc

es

Ex isting Desired

The content on this slide is from an FHWA presentation at the FHWA Regional Asset Management Conference on the Asset Management Domestic Scan

TAM Practices Gap Analysis

TAM1 Self Assessment

Action Plan TAM

Improvement Plan

Review: • Policy Guidance • Planning and

Programming • Program

Delivery • Information and

Analysis • Lifecycle

Management and TAM

• Legislative Compliance

TAM2 Gap Analysis

Review: • Policy

guidance • Planning and

programming • Program

delivery • Information

and analysis

TAM Business Strategy

TAM Plan

Delivery of Agency Mission

TAM2 Gap Analysis

TAM Improvement

Plan

TAM Plan

TAM2 Gap Analysis

TAM Gap Analysis Tool

Key TAM Area Element

Lifecycle Management

Project Identification and PrioritizationEvaluation of Asset ImprovementsDesign ProcessesManagement of Asset Improvement Contracts Preservation Strategy and Analysis

Sub-element Score

Preservation Plans

Preservation Monitoring

Active management of maintenance, tracking performance and controlling backlog.

Preservation Contract Management

Procedures in place (and followed) for the collection of O&M data required and updating of O&M records.

Preservation Monitoring è Organization is able to monitor performance of assets

and ensure that they are operational when required.

TAM Gap Analysis Example

Approaches to Implement Asset Management

• Many different reasons exist for why TAM implementation is needed in an agency

• Focusing on the one that is right for your agency at this time is critical for TAM success in delivering improved results

• The focus area that is chosen will drive the planning activities that will lead to a good Transportation Asset Management Plan (TAMP)

Change and Leadership in Asset Management

Ohio DOT – Asset Management Results

0

20

40

60

1 2 3 4 5 6 7 8 9 10 11 12

2005 1997

% O

f Mile

s D

efic

ient

Districts

Overall reduction in deficiencies of 81%The content on this slide is from Gordon Proctor’s presentation at the FHWA Regional Asset Management Conference

Organizational Change Frameworks

• Organizational change is a fundamental part of TAM

• Understanding and planning for the change needed in your organization will ensure successful TAM implementation

• Multiple methods and tools exist for managing organizational change

Baldrige Framework

Balanced ScorecardFramework

Six SigmaFramework

Combined 7 Baldrige criteria into 5 Vision Areas

Maryland SHA Baldrige Performance Management

Customer Satisfaction

Process Improvement

Business Planning

Workforce Planning

Leadership

PerformanceExcellence

1

3 4 5

7426

CU

STO

ME

RS

CUSTOMERS

Pro

cess

es

•Quality•Efficiency•Outputs

Outcomes

BUSINESS PLAN OBJECTIVES

Wyoming DOT – Balanced Scorecard

Developing Levels of Service

Levels of service describe what the customers perceive• Not set in isolation• All agencies have some now, in some form (e.g. GASB 34

Modified Approach)• Set at different levels — strategic, customer and technical• All must be SMART — Specific, Measurable, Achievable,

Relevant, Timebound• Customer levels of service should be set with customer

input- Start by documenting what is delivered now (the first-time up you

can skip consultation / customer research)- Pick from the full range of customer research tools when gathering

customer input• Customer levels of service amplify the

agency mission, they must not contradict it

Technical Levels of Service

• Take customer levels of service and convert them into technical language

• Technical levels of service should not stand alone, but support a customer level of service or a legislative requirement

• Used by asset managers and engineers to ensure that they are delivering the right things

• Describe what the technical measures are required to deliver the customer levels of service. E.g. - maximum and average roughness measured in IRI- minimum and average skid resistance- illumination levels from street lights

• The early stages of formal TAM may require current technical levels of service to be converted into “customer speak” and become current customer levels of service

Levels of Service Example for Sidewalks

Safe design

Safe separation

Health benefits

Smooth alignment

Comfort

Quality surface

Quality crossings

Efficient linkages

Direct access

Cleanliness

Safe transportation

network(social outcome)

People and businesses

efficiently linked(economic and social outcome)

"I arrive safe"

"It is easy to walk on"

"It is always clean"

Feel safe when walking

Well lit, ableto see clearly at

night

Lightinghelps protect my

property

Satisfied withthe walking experience

Sidewalks are clean, tidy, free

of litter

Standards for sidewalk width and separation

Minimum illumination

levels

Surface discontinuities

< 'x' inch

Wheelchair ramps at all intersections

Maximum slope and crossfall

standards

Street cleaning frequencies

Customer LOS Technical LOSStrategicobjectives

Examples of customer values

Vision / Strategic Outcomes

Level of service examples

Segment 2 – Group Assignment

• Each participant will share where they are in TAM maturity and state if there is a clear focus in their agency for asset management activities

• Each participant will answering the following questions (participants are encouraged to think about answers to these questions prior to the event)- Scope of TAM – What assets are included in the focus of your TAM

effort?- Organizational Engagement – Who are the people that will make TAM a

success?- What are the decision points where TAM is going to influence better

results for your agency (budgeting, staff allocation, design, etc.)?§ Who is involved?§ What decisions are being made?§ What impacts are the result?

• The group will select two participant agencies (more if there is time) to further develop responses to the questions above. A presentation of these responses will be given to the entire workshop group.


John BartonMara CampbellCharlie FielderTerry GibsonLacy LoveJim McDonnellMarvin MurphyJacob PorterThomas PrestashJ. "Butch" Wlaschin

Jillian BarberJane BergerKevin ChesnikGary EvansRoger HealyVince LatinoCharles MeyerJanet OakleyChristine ReedFrancine Shaw-WhitsonKenneth Sweeney

Brian BlanchardMichael BridgesJeff BrillhartMissy CassidyKeith DamronStehen GajDeLania HardyBen OrsbonDon VaughnRon Vibbert

Scott BennettKing GeeMatt HardyAhmad JaberGregory MayoPatricia Oliver-WrightJeff PierceRichard SavoieFrank Tramontozzi

Tom ColeKen KobetskyTracy Larkin-ThomasonGrant LeviLeslie MixNeil PedersenGloria ShepherdRichard TetreaultJennifer Toth


Group 4 Group 5

Segment 3 —Transportation Asset Management Plan

What a Transportation Asset Management Plan (TAMP) is

What it is

What it does

What it contains

How to develop a TAMP

ASSET MANAGEMENT PLAN CONTEXT

Page 2

What it is —Transport Scotland describes its Road AMP as “A

document that sets out the agreed ten-year work and financial plans for the trunk road network and describes how we will optimally manage these assets, through the development and application of recognised good asset management practices, to deliver customer expectations and the Aims, Objectives and Targets defined in the Corporate and Business Plans.

Transportation Asset Management Plan

Page 3

Transportation Asset Management PlanWhat it does —

• Provides a key tool to help you meet your strategic objectives

• Gives a focal point for information about:- Asset quantities and values- Investment strategies- How the assets are going to be managed to § Meet agency strategic objectives§ provide the agreed level of service to present and future customers

at the lowest practical lifetime cost .

• Provides best practice coordination of complex issues- Requires logical thought and analysis- Cross- silo coordination required

• Mechanism to aid communication internally and externally

• Provides a robust repository and recovery of asset management information

• Reinforces continuous improvementPage 4

What it contains•Format and level of detail to suit the agency’s level of TAM maturity

•No one “correct structure”--TAM Guide

- International Infrastructure Management Manual

- PAS 55 (UK)

-NZTA

-Transport ScotlandPage 5

Scottish Roads AMP

NATIONAL AMP

1 Introduction2 Aims, Objectives, Targets &

Expectations3 Road Assets4 Asset Management Practices5 Current and Future Demand6 Performance Management Framework7 Risk Management8 Lifecycle Plans9 Decision Support10 Work Plan11 Financial Plan12 Risks to the Ramp & their Management13 Monitoring, Reviewing & Continual

Improvement14 Asset Management Improvements15 References A. Road Structures – Construction FormB. Asset Management PlanningC. Information Management

Executive SummaryAbbreviations1 About the State Highway AMP2 Putting the Customer First3 The State Highway and its Assets4 Operating Performance and Asset

Condition5 Managing Customer Demand6 Managing Risk7 Asset Lifecycle and Funding

Requirements8 Implementation on the Ground9 Our Improvement Plan

Page 6

Items that the AMP should cover

• Strategic goals and levels of service -Agency performance measures

& achievement• Life cycle management

-Asset inventory & condition assessment

-Asset preservation-Replacement and renewal incl

predictive modelling-Risk assessment &

management-Program planning-Program delivery-Sustainability

• Growth & demand forecasting -establishing the need for

improvements

• Financial Summary-Valuation & depreciation, link to

GASB 34-annual and longer term

programs• TAM Practices• TAM Improvement Plan• Appendices

-May be extensive and detailed or just contain minimum of relevant supporting information

Page 7

Who should be involved in the TAMP?

TAM is focussed on delivering services – many parties should be involved.- The TAM Plan team- Internal stakeholders.- External stakeholders.- Customers may

be a new consideration

Page 8

Business processes and the TAMP

The TAMP is the center through which the processes required to deliver an agency’s goals and objectives relate to each other and are coordinated

Page 9

The TAMP is therefore the hub of service delivery

It gathers all the inputs and moderates them with all the appropriate controls

It outputs the programs, forecasts and information required for the agency to achieve its mission

Without a TAMP the Mission is harder to achieve and it may just be a happy coincidence that it is achieved

TransportAsset

Management Plan

Asset life-cycle management strategies

& policies

Service performance strategies & policies

Growth/ demand strategies & policies

Corporate Strategic Goals & Objectives

Financial management strategies & policies

Business improvement strategies & policies

TransportAsset

Management Plan

Optimized life cycle management plans

Critical assets

Long-term financial forecast

The current state of infrastructure

Improvement plan

Current & proposedservice levels

Growth & demand management plan

Annual Delivery Programs

Page 10

What does a TAMP look like?Many are single documents, especially when they cover local or regional assets

At State level the TAMP is likely to be a smaller document that:• Draws published information together from a large number of internal and

some external publications.• Directs its outputs to separate programs such as budget forecasts,

approved improvement and preservation programs, and procedure and process manuals

The picture at State level is of a “bookshelf” that comprises the TAMP. • E.g. There are 55 manuals and publications that

together describe the NZTA State Highway (national highway) asset management system.

• Many of these manuals are also used by local roading authorities.

Page 11

Writing and updating the TAM Plan

1. Start where you are now2. Document what you do now and currently planned asset

management improvements3. Populate the Improvement Plan as you write the TAMP, use

it to fill gaps that you do not have the time or information to fill now.

4. Prioritize the IP and allocate resources to it5. Use the plan and give effect to the improvement plan6. Repeat the cycle from 2.Page 12

TAMP Steps

Page 13

TAMP Steps 1, 2, 3, 4 Set Agency Direction for TAM

• Set agency goals and objectives for TAM

• Perform an agency self assessment and TAM gap analysis

• Define the scope of TAM in the agency

• Agency-wide strategic performance measurement

• Establish performance management standards

2.2 2.3 2.3 3.6 5.2

Gather Data • Asset inventory, condition

assessment and performance monitoring

• Asset valuation and depreciation • Data to support Transportation

Asset Management

6.2 7.4 8.7

Concurrent Agency Processes • Integration • Key principles for TAMIS

implementation • Alternative models for TAMIS

implementation • Asset management and

enterprise resource planning • Data to support Transportation

Asset Management

8.3 8.4 8.5 8.6 8.7

TAMP Steps 5, 6, 7 Write the Plan

• Lifecycle asset management • Linking strategic performance

measures to levels of service • Growth and demand

forecasting • Program planning • •Linking the plan to existing

business processes • Risk assessment and

management • Sustainability • TAM Improvement Plan

6.3, 6.4 & 6.5 5.3 5.4 7.2 4.4 5.5 7.5 2.3

Understand the TAMP Process • Why have a TAMP? • Business process context • Components of a transportation

asset management system • Key principles for TAMIS


implementation • Asset management and enterprise

resource planning

4.2 4.3.1 8.2 8.4 8.5 8.6

TAMP Step 8 Implement, Use, and Review the

TAMP • The iterative process of

TAMP development, review and improvement

4.3.5

Is the plan affordable?

No

Strategic Plan, Annual Plan, business plans,

annual reports

Yes

Prepare yourself, the Agency, and the team

Page 14

TAMP Steps 1, 2, 3, 4 Set Agency Direction for TAM

• Set agency goals and objectives for TAM

• Perform an agency self assessment and TAM gap analysis

• Define the scope of TAM in the agency

• Agency-wide strategic performance measurement

• Establish performance management standards

2.2 2.3 2.3 3.6 5.2

Understand the TAMP Process • Why have a TAMP? • Business process context • Components of a transportation

asset management system • Key principles for TAMIS


implementation • Asset management and enterprise

resource planning

4.2 4.3.1 8.2 8.4 8.5 8.6

Carry out the essential supporting processes

Page 15

Gather Data • Asset inventory, condition

assessment and performance monitoring

• Asset valuation and depreciation • Data to support Transportation

Asset Management

6.2 7.4 8.7

Concurrent Agency Processes • Integration • Key principles for TAMIS


implementation • Asset management and

enterprise resource planning • Data to support Transportation

Asset Management

8.3 8.4 8.5 8.6 8.7

Write the plan / Compile the documents

Page 16







6.3, 6.4 & 6.5 5.3 5.4 7.2 4.4 5.5 7.5 2.3

Check the plan’s viability

Page 17







6.3, 6.4 & 6.5 5.3 5.4 7.2 4.4 5.5 7.5 2.3


No

Yes

The most important steps — Use and Continuous Improvement!

Page 18




4.3.5


No

Yes

“ However, this is our first RAMP, and it was decided that it would be more prudent to only cover some of the asset types in this first version. It was agreed that the two major asset types of

(i) Roads (focusing on carriageways); and

(ii) Bridges and Other Road Structures,

would be used for this RAMP”

—Transport Scotland

Continuous Improvement means you can prioritize your efforts

Page 19

The TAM Plan should be a prime input to other documents and plans

Page 20




4.3.5

Strategic Plan, Annual Plan, business plans,

annual reports

Yes


Mara CampbellTom ColeRoger HealyGrant LeviJim McDonnellBen OrsbonRichard SavoieRichard TetreaultJ. "Butch" Wlaschin

Scott BennettJane BergerKeith DamronKen KobetskyLeslie MixMarvin MurphyJeff PierceGloria ShepherdKenneth SweeneyDon Vaughn

Jeff BrillhartKevin ChesnikGary EvansKing GeeMatt HardyAhmad JaberVince LatinoLacy LovePatricia Oliver-WrightRon Vibbert

John BartonBrian BlanchardMichael BridgesMissy CassidyStehen GajTerry GibsonDeLania HardyTracy Larkin-ThomasonCharles MeyerJennifer Toth

Jillian BarberCharlie FielderGregory MayoJanet OakleyNeil PedersenJacob PorterThomas PrestashChristine ReedFrancine Shaw-WhitsonFrank Tramontozzi


Group 4 Group 5

How are your strategic goals and objectives currently linked to annual and longer term programs?

Where do staff find all the information they require to prepare and manage these programs?

How do you know that they are using the correct inputs?

What are your current intentions on preparing a TAMP?

What parts [of a TAMP] do you see as being of most value to you?

Questions to Consider

Page 22

Each group will present the findings for at least two states

• linkages,

• information sources and inputs,

• TAMP intentions,

• TAMP value.

• Any other relevant comments

Working Group Presentations and Discussion

Page 23

Understanding of how a TAMP can improve linkages between corporate strategy and annual and longer-term programs

Better understanding of the risks and vulnerabilities associated with current programming and asset management practices

Page 24

1

MOVING FROM THE TAMPTO IMPLEMENTATION

Segment 4

2

Moving from the TAMP to implementation

– Organizing for change

• Leadership

• Building the team

• Change management

– Tools

• Performance measurement

• Levels of service

• Forecasting

• Breaking silos

– Verifying progress

3

Building the team

– Leadership distinct from operational and support units– Rely on staffing from existing operational and support units– Coordination and communication role

4

Asset Management Leadership

5

Step-by-step: Building the team

– The champion/intrapreneur needs stakeholder allies• Supply side: Build the tools/processes/data• Demand side: Foster demand for better information

– Top management support is not automatic

6

Change management and incrementalism

– Build consensus and buy-in– Information is power

• Share the power• Use the power

Consensus on desired outcomes

and how to measure them

Put measures to work: simple

targets and criteria

Keep refining and improving

7

Tools: Measurement and forecasting

– First measure the outcomes you want, guided by the TAMP

– Then measure the • inputs, • outputs, • external factors

that affect your ability to deliver

8

Levels of service

– Build on Transportation Asset Management Plan– Foundation of performance measurement– Describe what service the agency intends to supply– Build stakeholder consensus

9

Being pro-active

– What does it mean?• Reaching out to stakeholders• Taking the initiative• Forecasting and influencing outcomes

– Forecasting tools and processes:

0

10

20

30

40

50

60

70

80

90

100

0 10 20 30 40 50 60 70 80 90 100Age of element (years)

Hea

lth in

dex A1 - Concrete deck

B2 - Pourabl e joi ntD2 - Pa i nt s teel beamF3 - R/C Column

Consequence

Likelihood Insignificant Minor Significant Major Catastrophic

Very Rare Low Low Low Moderate High Rare Low Low Moderate High High Seldom Low Moderate Moderate High Extreme

Common Moderate Moderate High Extreme Extreme Frequent Moderate High High Extreme Extreme

Last

insp

ectio

n

Yea

r of

anal

ysis

Base

yea

r

Res

idua

l yea

r

Initi

al In

terv

entio

n

Follo

w-U

p In

terv

entio

n

Res

idua

l Nee

ds

Follo

w-U

p In

terv

entio

n

10

Breaking the silos

Strategic elements– Common strategy– Common outcome measures– Common self-assessment– Transportation Asset Management Plan

Tools– Investment Candidate File– Tradeoff analysis– Performance framework

11

Performance frameworkUtility

Weighting and utility

Condition Mobility Safety Risk Reliability Externalities Comfort/Convenience

Life Cycle Cost

O-D

trav

el ti

me

Wal

k di

stan

ce

Cra

sh ra

tes

Satis

fact

ion

of b

arrie

r sta

ndar

ds

Pas

seng

er fa

cilit

y lia

bilit

y

Brid

ge s

cour

risk

Adv

ance

d de

terio

ratio

n

Std

devi

atio

n of

trip

tim

e

Freq

uenc

y of

mov

able

brid

ge o

peni

ngs

Noi

se le

vels

Ozo

ne c

once

ntra

tion

Gre

enho

use

gase

s

Vehi

cle

and

stat

ion

clea

nlin

ess

Roa

d ro

ughn

ess

Res

t are

a cl

eanl

ines

s

Pave

men

t life

cyc

le c

ost

Brid

ge li

fe c

ycle

cos

t

Scaling and amalgamation models

Analysis and forecasting models

Pavement Management

System

UserCost

Fare

s an

d to

lls

Veh

icle

ope

ratin

g co

sts

Pave

men

t con

ditio

n ra

ting

Brid

ge h

ealth

inde

x

Volu

me/

capa

city

ratio

Tran

sit f

acili

ty li

fe c

ycle

cos

t

Pro

perty

val

ue im

pact

s

Relative weights of performance measures

Relative weights of assets (utilization, replacement cost, value)

Bridge Management

System

Maintenance Management

System

Transit Management

System

12

Verifying progress

13

TAM as a management approach

– Teamwork across operational silos– Very specific, shared definition of desired outcomes

• Levels of service• Performance expectations

– Internal and external consensus-building– Information is power

it must be shared and used– Expertise and tools are necessary,

but not the main driver– What gets measured gets done

Build a performance-oriented culture

14

WORKING GROUP SESSIONPutting TAM into practice

15


Jillian BarberScott Bennett

Michael BridgesTom Cole

Keith DamronRoger HealyVince LatinoLeslie Mix

Marvin MurphyJanet Oakley

Richard Savoie

Jane BergerMissy Cassidy

Stehen GajDeLania HardyGregory Mayo

Jeff PierceChristine ReedJennifer Toth

Frank TramontozziDon Vaughn

John BartonJeff Brillhart

King GeeMatt Hardy

Ahmad JaberTracy Larkin-Thomason

Grant LeviPatricia Oliver-Wright

Thomas PrestashFrancine Shaw-Whitson

Mara CampbellGary Evans

Terry GibsonKen Kobetsky

Lacy LoveBen Orsbon

Neil PedersenGloria ShepherdRichard Tetreault

Brian BlanchardKevin ChesnikCharlie FielderJim McDonnellCharles MeyerJacob Porter

Kenneth SweeneyRon Vibbert

J. "Butch" Wlaschin


Group 4 Group 5