denver international airport facility management - city and county

Dennis J. Gallagher

Auditor

Office of the Auditor

Audit Services Division

City and County of Denver

Denver International Airport Facility Management

Performance Audit

February 2012

The Auditor of the City and County of Denver is independently elected by the citizens of Denver. He is

responsible for examining and evaluating the operations of City agencies for the purpose of ensuring the

proper and efficient use of City resources and providing other audit services and information to City

Council, the Mayor and the public to improve all aspects of Denver’s government. He also chairs the

City’s Audit Committee.

The Audit Committee is chaired by the Auditor and consists of seven members. The Audit Committee

assists the Auditor in his oversight responsibilities of the integrity of the City’s finances and operations,

including the integrity of the City’s financial statements. The Audit Committee is structured in a manner

that ensures the independent oversight of City operations, thereby enhancing citizen confidence and

avoiding any appearance of a conflict of interest.

Audit Committee

Dennis Gallagher, Chair Robert Bishop

Maurice Goodgaine Jeffrey Hart

Leslie Mitchell Timothy O’Brien, Vice Chair

Rudolfo Payan

Audit Staff

John Carlson, Deputy Director, JD, MBA, CIA

Dawn Hume, Internal Audit Supervisor

Marcus Garrett, Lead Internal Auditor, CIA, CGAP

Emily Sheets, Lead Internal Auditor, MS

Travis Henline, Senior Auditor

You can obtain copies of this report by contacting us at:

Office of the Auditor

201 West Colfax Avenue, Department 705 Denver CO, 80202

(720) 913-5000 Fax (720) 913-5026

Or download and view an electronic copy by visiting our website at:

www.denvergov.org/auditor

http://www.denvergov.org/auditor

To promote open, accountable, efficient and effective government by performing impartial reviews and other audit

services that provide objective and useful information to improve decision making by management and the people.

We will monitor and report on recommendations and progress towards their implementation.

City and County of Denver 201 West Colfax Avenue, Department 705 Denver, Colorado 80202 720-913-5000

FAX 720-913-5247 www.denvergov.org/auditor

Dennis J. Gallagher

Auditor

February 16, 2012

Ms. Kim Day, Manager

Department of Aviation

City and County of Denver

Dear Ms. Day:

I would like to acknowledge the strong partnership between my office and the Denver

International Airport (DIA). Over the last few years, working in collaboration with my audit staff,

DIA has engaged in meaningful assessment of potential risks to airport operations and the City.

DIA leadership has repeatedly shown that they understand the value of a strong audit function

and the benefits that concrete audit recommendations can provide. This audit is the most

recent example of this mindset.

The purpose of this performance audit was to assess current and proposed facility management

plans utilized by the DIA Maintenance Division (Division). A well-maintained airport will facilitate

economic growth not only for the City but also for the state and surrounding region.

While we praise DIA’s proactive approach and its desire to implement a comprehensive facility

management plan, we must note that significant work is required to make this a reality. Our work

indicated that key elements are missing in the current facility management program.

Specifically, the Division does not have an adequate asset management strategy and does not

consistently track all assets. The Division can improve its workforce succession planning by

utilizing best practice strategies identified in the report. Finally, the maintenance approach

should be augmented to address impediments that prevent the Division from transitioning to a

more cost-effective maintenance program. The success of DIA is largely dependent on

passenger satisfaction, which is directly linked to how well facilities are maintained and

managed.

As a result of the issues identified in our audit, we offer several thoughtful recommendations to

assist DIA when planning necessary maintenance activity.

If you have any questions, please contact Kip Memmott, Director of Audit Services, at 720-913-

5000.

Sincerely,

Dennis J. Gallagher

Auditor

DG/th

cc: Honorable Michael Hancock, Mayor

Honorable Members of City Council

Members of Audit Committee





Ms. Janice Sinden, Chief of Staff

Ms. Stephanie O’Malley, Deputy Chief of Staff

Ms. Cary Kennedy, Chief Financial Officer

Mr. Doug Friednash, City Attorney

Mr. L. Michael Henry, Staff Director, Board of Ethics

Ms. Janna Bergquist, City Council Executive Staff Director

Ms. Beth Machann, Controller

Mr. Ken Greene, Deputy Manager of Operations, Public Safety, and Security

Mr. Ron Morin, Interim-Deputy Manager of Aviation, Field Maintenance Director

Mr. Patrick Kelly, Interim-Deputy Manager of Aviation, Technical Maintenance Director




City and County of Denver 201 West Colfax Avenue, Department 705 Denver, Colorado 80202 720-913-5000

FAX 720-913-5247 www.denvergov.org/auditor

Dennis J. Gallagher

Auditor

AUDITOR’S REPORT

We have completed a performance audit of the Department of Aviation’s Facility Management

program. The purpose of this performance audit was to assess facility management plans utilized

by Denver International Airport’s (DIA) Maintenance Division (Division), to ensure an effective

maintenance approach is utilized by the Division, and to identify possible inefficiencies and

opportunities for improvement.

This performance audit is authorized pursuant to the City and County of Denver Charter, Article

V, Part 2, Section 1, General Powers and Duties of Auditor, and was conducted in accordance

with generally accepted government auditing standards. Those standards require that we plan

and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis

for our findings and conclusions based on our audit objectives. We believe that the evidence

obtained provides a reasonable basis for our findings and conclusions based on our audit

objectives.

The audit revealed that the Division has not taken the necessary steps to implement a robust

asset management plan. Our work identified multiple opportunities for improvement including

developing a comprehensive facility management planning strategy, consistently and

accurately tracking assets, preparing an effective succession strategy to address a retirement-

eligible workforce, and transitioning to a maintenance approach suitable for a facility the age

of DIA. By addressing these areas moving forward, DIA should be well situated for future success.

We extend our appreciation to the Department of Aviation staff that assisted us during the audit.

Audit Services Division

Kip Memmott, MA, CGAP, CICA

Director of Audit Services


TABLE OF CONTENTS

EXECUTIVE SUMMARY 1

To Fully Execute its Facility Management Program, DIA Needs to Develop

a Comprehensive Asset Management Plan 1

INTRODUCTION & BACKGROUND 5

SCOPE 9

OBJECTIVE 9

METHODOLOGY 9

FINDING 11

To Fully Execute its Facility Management Program, DIA Needs to Develop

a Comprehensive Asset Management Plan 11

RECOMMENDATIONS 24

APPENDICES 25

Appendix A – DIA Maintenance Division Organizational Chart 25

AGENCY RESPONSE 26

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EXECUTIVE SUMMARY

Denver International Airport (DIA) opened 17 years ago in 1995. The facility spans nearly

34,000 acres and includes one main terminal, three separate concourses, and six

runways. DIA’s Maintenance Division (Division) is tasked

with maintaining the DIA facility, including both indoor

and outdoor areas.

The success of the airport largely depends on how well

the facilities are maintained and managed by the

Division. Top-ranked airports in the world, based on

passenger satisfaction, prioritize maintenance

fundamentals such as clean surroundings, comfortable waiting areas, and ease of

movement through the airport.1 In addition, satisfied passengers are likely to spend more

money at airport retail establishments, which generates sales tax revenue for the City.

To Fully Execute its Facility Management Program, DIA Needs to Develop a Comprehensive Asset Management Plan

The current facility management program at DIA does not have fundamental elements

in place. Specifically, the Division does not have an adequate asset management

strategy, is not fully maximizing its asset management software, and must sufficiently plan

for succession within its workforce. These issues all hinder the Division from utilizing cutting-

edge and cost-effective maintenance strategies.

Facility Management Strategy is Inadequate to Effectively Plan for

Maintenance Needs

There are three issues noted with respect to the Division’s forecasting and budgeting

process that demonstrate the ineffectiveness of the current planning strategy.

Ability to Address Sudden Equipment Failures can be Enhanced – DIA’s central

plant—the heating and cooling system—has recently experienced failures, which

the Division was unprepared to address. More specifically, a chiller in the central

plant failed in July 2011 and remained inoperable as of January 2012.2 Prior to the

failure of this chiller, it had exceeded its useful life, but the Division had not

planned for replacement.

Inadequate Planning for Unexpected Costs – The Division does not plan for

unexpected maintenance costs. Based on a review of the Division’s budget and

1 “Incheon International Airport named Best Airport Worldwide,” Airports Council International, accessed September 22, 2011,

http://www.airports.org. J.D. Power and Associates, “Although Technology May Help Improve the Airport Experience, the Basics Have the Greatest Impact on Passenger Satisfaction” (2010): accessed September 22, 2011, http://businesscenter.jdpower.com/news/pressrelease.aspx?ID=2010015. 2 A chiller is a major component of the refrigeration system that provides water-cooled air throughout the airport.

http://www.airports.org/aci/aci/file/Press%20Releases/2011/PR_150211_ASQAwards_final_final.pdf

http://businesscenter.jdpower.com/news/pressrelease.aspx?ID=2010015

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The Division should fully

utilize its existing

technology prior to

investing in a new system.

interviews with key personnel, contingency funds are not maintained for high-

dollar assets, such as the tent roof or the chillers.

Unknown Condition of Assets – The Division does not know the condition of all

assets when budgeting for maintenance costs. Asset condition should play a

major role in determining the priority of maintenance needs and amount of

resources needed for maintenance. The Federal Real Property Council supports

asset-condition assessment as a best practice.3

Further hindering the planning and budgeting process, the Division does not track many

key performance measures that assist management in measuring the effectiveness of

their maintenance strategies. This includes one key measure used by the Airport

Cooperative Research Program, the International Facility Management Association

(IFMA), and other airports: maintenance cost per square foot. Tracking and monitoring

key measures provides a methodology for Division management to tie decisions to

concrete data, and allows the Division to better justify expenditures and prioritize

maintenance needs.

Asset Management Program Best Practices – An important component of facility

management is an effective asset management program, which emphasizes managing

an asset throughout its full life-cycle—planning, acquisition, maintenance, renovation,

and disposal. Federal Executive Order 13327 instructs federal agencies to implement a

comprehensive asset management program for all real property.4 In addition, three of

five respondent airports to our benchmarking survey reported using a comprehensive

asset management program. Division management recognizes asset management

programs as a best practice; however, such a program has not been implemented. The

Division has launched an asset management pilot program by utilizing a consultant to

conduct a baseline condition assessment of the passenger loading bridges.

The Division is not Fully Maximizing Asset Management Software

The Division has not input all capital assets into its asset management software program,

Maximo, and primarily utilizes Maximo to generate preventative maintenance and

service call work orders, which does not maximize the

software’s asset management capabilities. Further,

while Maximo has the ability to track a multitude of

data elements identified as best practice, the Division

does not consistently enter this information.

Underutilization of Maximo has several negative

effects including the inability to identify the types and

the number of assets the Division possesses, to

determine the value of an asset, and to rely on data and internal reports used for

decision making. The Division has expressed interest in using Building Information

3 Executive Order 13327, Federal Real Property Asset Management, 69 Fed. Reg. 5897 (Feb. 4, 2004) established the Federal

Real Property Council. The Council is responsible for creating asset requirements for federal agencies. For more information refer to http://edocket.access.gpo.gov/2004/pdf/04-2773.pdf. 4 Ibid.

http://edocket.access.gpo.gov/2004/pdf/04-2773.pdf

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Modeling technology, which can enhance facility management practices; however, the

Division should fully utilize its existing technology prior to investing in a new system.

Workforce Succession Plan Must Include Additional Key Elements

Due to a large number of retirement-eligible employees and a lengthy, difficult hiring

process, the Division faces significant challenges developing workforce planning

strategies. Division management, in conjunction with the Career Service Authority (CSA),

conducted an analysis and determined that twenty-five percent of Division personnel will

be eligible to retire in three to five years. In addition, CSA 2011 recruitment data shows

that it took the Division an average of 103 days to fill an open position.5 The technical

nature of many of the Division’s positions makes it challenging to find qualified

candidates, further prolonging the hiring process. Although the Division has created a

succession plan, it has not fully incorporated all available workforce planning strategies

as identified by federal and industry best practice, including implementing internal cross-

training activities.

A Lack of Information in Maximo is Preventing DIA from Transitioning to a

More Cost-Effective Maintenance Program

The Division relies heavily upon a reactive maintenance approach—which focuses on

responding and fixing problems and asset failures as they occur—rather than preventing

and predicting problems. A reactive maintenance approach is more costly and less

effective for facility maintenance. IFMA suggests that relying on a reactive strategy is

more appropriate for new facilities, since the risk of equipment failure is low. Now that

DIA is 17 years old, the Division’s maintenance strategy should be adjusted to a more

comprehensive approach.

Transitioning to a predictive maintenance approach, one that determines maintenance

tasks based on asset condition, has many benefits. A functional predictive maintenance

program increases a facility’s return on investment and provides, on average, the

following savings.6

25 to 30 percent reduction in maintenance costs

70 to 75 percent reduction in breakdowns

35 to 45 percent reduction in downtime

Research indicates the most cost-effective maintenance program is a reliability-

centered maintenance program (RCM), which has many of the same benefits as a pure

predictive maintenance approach. Typically, RCM uses a mixture of all three types of

approaches—reactive, preventative, and predictive—and takes into account that not

5 A copy of the Career Service Authority Recruiting Report, was provided to the Audit Team on November 7, 2011. The report

measured the time between the certification date to the effective date that a promotion or new hire was confirmed. In 2011, section manager final approval to posting (forty-four days) plus average of select DIA Maintenance Division sections recruiting period (fifty-nine days) totaled 103 days. 6 U.S. Department of Energy, Operations & Maintenance Best Practices: A Guide to Achieving Operational Efficiency, (August

2010): accessed December 14, 2011, http://www1.eere.energy.gov/femp/pdfs/omguide_complete.pdf.

http://www1.eere.energy.gov/femp/pdfs/omguide_complete.pdf

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all assets are equally important to the overall mission, prioritizing maintenance tasks

accordingly.

The Division has expressed interest in moving towards a more cost-effective approach,

but lacks the basic information necessary to do so. This information includes having a

master list of all assets maintained by the Division, assigning a priority to each asset, and

knowing the condition of each asset.

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INTRODUCTION & BACKGROUND

History of Denver International Airport

The City and County of Denver owns the Municipal Airport System, which includes

Denver International Airport (DIA) and the former Stapleton International Airport

(Stapleton).7 Construction on Stapleton began in 1928. Although Stapleton expanded

multiple times, air traffic reached full capacity in the late 1980s. In 1994, the Department

of Aviation became an independent City department tasked with operating the

Municipal Airport System, and the Manager of Aviation began reporting directly to the

Mayor. Once DIA officially opened in 1995, Stapleton was decommissioned and

redeveloped into a multi-use area.8 DIA was built on nearly 34,000 acres of land and

includes one main terminal, three separate concourses,

and six runways. The four busiest airports in the United

States—Hartsfield-Jackson Atlanta, Chicago O'Hare, Los

Angeles International, and Dallas/Fort Worth International

Airport—could fit inside the 53-square-mile DIA parcel.9

When Stapleton was decommissioned, a number of assets

were transferred from Stapleton, including some

passenger loading bridges and components of the

heating and cooling system. Accordingly, DIA’s Maintenance Division (Division) found

itself maintaining both old and new airport assets. One of the more well-known and

visible features of the airport is the Jeppesen Terminal tent roof. The unique covering

consists of 15 acres of credit-card thin Teflon-coated fiberglass material draped over 34

masts. The tent roof uses a cable system similar to that of the Brooklyn Bridge and is 126

feet from the terminal floor to its highest point.

DIA Maintenance Division

The Division has an annual operating and maintenance budget—excluding capital

improvements—of approximately $125 million.10 The Division employs over 500 full-time

employees and is responsible for managing $38 million in contract services. Appendix A

contains the Division’s organizational chart. The Division’s work is critical to the success of

the airport because of the wide range of stakeholders who are affected by

7 Department of Aviation Revenue Contract Management, City and County of Denver Auditor’s Office, March 2011,

http://www.denvergov.org/auditor/AuditServices/AuditsCurrentYear/tabid/435802/Default.aspx. 8 Denver International Airport Finance and Administration Division, City and County of Denver Auditor’s Office, September 2011,

http://www.denvergov.org/auditor/AuditServices/AuditsCurrentYear/tabid/435802/Default.aspx. 9 Do You Know DIA? Denver International Airport, http://www.flydenver.com/doyouknowdia.

10 Operating and maintenance funds are used to maintain existing assets. Capital improvement projects (CIPs) provide a

significant addition, upgrade, or extend the useful life of an asset. CIPs are funded separately. Specific funding sources and allocations are determined through collaborative discussions between the Maintenance Division, the Planning and Development Division, and Financial Planning and Analysis.

http://www.denvergov.org/auditor/AuditServices/AuditsCurrentYear/tabid/435802/Default.aspx

http://www.denvergov.org/auditor/AuditServices/AuditsCurrentYear/tabid/435802/Default.aspx

http://www.flydenver.com/doyouknowdia

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maintenance practices: air carriers, airline employees, retail establishments, and

travelers. The Division’s objective is to maintain ―all city owned facilities, airport operating

areas, and equipment‖ at DIA in the most effective and efficient manner.11 The Division

also ensures that all airport facilities remain compliant with Federal Aviation

Administration certification.

The Division comprises six sections, each of which plays a

role in helping DIA meet its objectives. One activity the

Division performs is snow removal, which significantly

impacts operations. The responsibilities of the individual

sections are described in greater detail below.

Facilities Maintenance – The Facilities Maintenance section maintains and repairs

all DIA facilities, which include several million square feet of roofs, walls, ceilings,

floors, and doors. The Facilities Maintenance workforce comprises multiple

professional trades such as carpenters, plumbers, and painters, as well as heating,

ventilating, and air conditioning personnel.

Field Maintenance – In accordance with rules and regulations promulgated by

the Federal Aviation Administration (FAA), the state, and the City, Field

Maintenance maintains the 53-square-mile airport site which includes the airport

operating area and the functional areas surrounding DIA, such as Peña

Boulevard. Field Maintenance completes all repairs and resurfacing of the

runways and taxiways in accordance with FAA guidelines. Further responsibilities

include airfield painting and landscaping.

Fleet Maintenance – This section services and maintains all airport-owned vehicles

and certain equipment. The goal of Fleet Maintenance is to provide internal

customers with safe and reliable equipment repaired in a timely and cost-

effective manner. Services performed include oil changes, alignment, and

diagnostics. Fleet Maintenance oversees one of the largest alternative-fuel and

snow-removal-equipment fleets in the United States.

Life Safety – The Life Safety section maintains the operation of all fire alarm and

fire suppression systems at DIA. This responsibility includes the inspection and

maintenance of all emergency power equipment including generators,

uninterruptable power supply units, and lighting inverters. Life Safety also inspects

and services approximately 1,600 fire extinguishers.

Maintenance Services – The Maintenance Services section provides support for

the entire Division, including fielding internal maintenance requests. In addition,

Maintenance Services is responsible for the Maintenance Control Center,

contract administration, the asset management system, and overseeing contract

snow removal.

Technical Maintenance – This section maintains and supports multiple electrical

and electronic systems such as facility and runway lighting, passenger loading

11 Denver International Airport Maintenance Division intranet, accessed July 7, 2011.

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Success of the airport is

dependent on how well

the facilities are

maintained and

managed by the

Division.

bridges, closed circuit security cameras, and emergency power systems.12 The

graphics shop, which fabricates and installs most of the signage throughout the

airport, is also housed within the Technical Maintenance section.13

The Concept of Facility Management

The International Facility Management Association (IFMA) studies all aspects of facility

management and considers the topic the ―integration of processes within an

organization to maintain and develop the agreed services which support and improve

the effectiveness‖ of primary activity.14 In other words, facility

management is a multi-disciplinary approach, which acts as

a support function to ensure that the organization can

effectively carry out its primary activities. In the case of DIA,

facility management aims to support the primary activity of

air travel, and, as discussed above, draws upon the skills of

many different professions.

The success of the airport is dependent on how well the

facilities are maintained and managed by the Division. Both

the Airport Council International and J.D. Power & Associates

conduct annual passenger satisfaction surveys and have linked facility management

directly to customer satisfaction. The most recent results published by both organizations

note that top-ranked airports prioritize maintenance fundamentals such as clean

facilities, comfortable waiting areas, and ease of movement throughout the airport. In

addition, both organizations note that satisfied passengers are likely to spend more at

airport retail establishments. In 2011, Business Traveler Magazine awarded DIA the Best in

Business Travel Award for the Best Airport in North America. DIA has received this award

for the last seven years.

Maintenance Program Approach

Research identifies four common approaches to administer a maintenance program:

corrective, preventative, predictive, and reliability-centered.

Corrective – Corrective, or reactive, maintenance programs focus on performing

maintenance after a problem or failure occurs.

Preventative – Preventative maintenance programs focus on performing routinely

scheduled maintenance tasks to prolong useful life and prevent failures.

Predictive – Predictive maintenance programs focus on utilizing technology and

standards to determine what maintenance is needed and develop maintenance

schedules based on the actual condition of the asset, rather than on pre-

12 A passenger loading bridge or jetway is a walkway linking the concourse gate to the aircraft, allowing passengers to board

and exit an aircraft. 13

Denver International Airport intranet, accessed July 7, 2011. 14

“FMpedia,” International Facility Management Association Foundation, accessed December 5, 2011, fmpedia.org/gv.aspx.

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determined timeframes as used in preventative maintenance. Predictive

maintenance programs aim to predict equipment failures before they occur,

allowing maintenance personnel to take mitigating actions sooner, and thereby

reducing maintenance costs.

Reliability-Centered – Reliability-centered maintenance programs utilize elements

from corrective, preventative, and predictive approaches, focusing on predictive

elements and incorporating in-depth root-cause analysis of asset failure.

When choosing an approach, facility managers often consider a variety of factors

including budget, facility age, and facility size.

Facility Asset Management System

The Division uses IBM Maximo® (Maximo), an asset management software tool, to track

assets it is responsible for maintaining. Maximo has the ability to manage an asset from

purchase to disposal. In addition, Maximo can track a variety of key asset data elements,

including asset purchase price, condition, value, and work-order history. Maximo has a

variety of other functions, including five important capabilities.

Asset Operations – Organizing asset operations, specifications, and tracking

within a single system.

Maintenance Schedules – Generating comprehensive maintenance schedules

for planned and unplanned activities, resource optimization, and identification of

key performance indicators.

Inventory Planning – Inventory planning to meet maintenance demand.

Vendor Management – Vendor contract management with comprehensive

support for purchase, lease, warranty, and user-defined contracts.

Service Level Agreements – Establishing service level agreements to help align

service levels with business objectives.

Division personnel are responsible for inputting items maintained by the Division into

Maximo as either an asset or a location. Maximo is capable of tracking a multitude of

data elements related to each asset and location contained in the system. When data

elements are recorded consistently and accurately, the Division can utilize this

information to plan for future asset replacement, budgeting, and maintenance cost

monitoring.

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SCOPE

This audit examined current and proposed facility management plans through

November 20, 2011 to ensure that adequate and continuous maintenance occurs on

facilities maintained at Denver International Airport.

OBJECTIVE

To determine how the Denver International Airport Maintenance Division (Division)

maintains facilities, we assessed:

How the Division plans for maintenance activities and manages its facilities

Which maintenance programs the Division uses for long-term operations

How a large facility plans for future growth and expansion without disrupting daily

operations

How a facility effectively transitions to a predictive maintenance strategy

METHODOLOGY

We utilized several audit methodologies to achieve the objectives. These evidence-

gathering techniques included, but were not limited to:

Interviewing Division management and personnel

Reviewing applicable local, state, and federal regulatory requirements

Evaluating prior internal audits conducted at Denver International Airport (DIA)

Reviewing internal and external facility management audits

Evaluating the Division’s approach to managing facilities

Identifying facility management best practices

Benchmarking and researching five other airports

San Francisco International Airport (SFO)

Dallas/Fort Worth International Airport (DFW)

Cincinnati/Northern Kentucky Airport (CVG)

Hartsfield-Jackson Atlanta International Airport (ATL)

Minneapolis-Saint Paul International Airport (MSP)

Reviewing Single Audit and Management Letter findings

Touring the DIA facility

Analyzing workers’ compensation data for the Division

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Reviewing financial information, including identifying budget trends and the

Division’s Capital Improvement Plan

Evaluating the hiring process used by the Division

Performing testing of data contained in Maximo

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The strategy currently

used by the Division

hinders its ability to

efficiently plan, budget,

and measure performance.

FINDING

To Fully Execute its Facility Management Program, DIA Needs to Develop a Comprehensive Asset Management Plan

Denver International Airport (DIA) does not have the fundamental elements of a facility

management program in place. Specifically, the Maintenance Division (Division) does

not have an adequate asset management strategy, is not fully maximizing its asset

management software, and must sufficiently plan for succession within its workforce.

These issues all hinder the Division from utilizing cutting-edge and cost-effective

maintenance strategies.

Facility Management Strategy is Inadequate to Efficiently Plan for

Maintenance Needs

The Division does not have a comprehensive asset management program. Instead, the

Division utilizes an informal strategy to plan for maintenance costs, prioritize maintenance

needs, and track performance. Industry standards and

best practices information provide specific methods that

facilities can use to enhance their facility management

practices and formalize their decision-making processes.

For example, the federal government requires all its

agencies to implement comprehensive asset

management programs. Further, other airports have used

asset management programs to improve facility

management. The strategy currently used by the Division

hinders its ability to efficiently plan, budget, measure performance, and implement

critical improvements.

Current Forecasting and Budgeting Process Leaves the Division Vulnerable to Equipment

Failure

Even though the Division recognizes asset management programs as a best practice,

such a program is not in place. Instead, the Division’s planning process involves informal

discussions between various levels of DIA management. This process is not adequate to

plan for maintenance needs.

For example, DIA’s central plant—the heating and cooling system—has recently

experienced failures, which the Division was unprepared to address. The main

components of cooling equipment consist of four chillers, one of which was relocated to

DIA from Stapleton International Airport (Stapleton).15 Division management provided an

estimated useful life for the chillers of 30 to 35 years. Despite the criticality of this

equipment and the fact that one of the chillers already surpassed its useful life, the

Division did not initiate a formal replacement plan.

15 A chiller is a major component of the refrigeration system that provides water-cooled air throughout the airport.

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The Airport Cooperative

Research Program, the

International Facility

Management Association,

and other airports all

utilize maintenance cost

per square foot to evaluate

success.

In July 2011, one of the original chillers from Stapleton failed. The Division was assessing

replacement strategies but as of January 2012, the chiller remained inoperable. This

leaves DIA in a precarious situation: if another chiller fails, the ability to cool the airport will

be significantly compromised. The long range strategy for upgrading the condition of the

central plant is connected to the plans for the South Terminal Redevelopment Program

(STRP). The hotel component of STRP will be serviced by the central plant. Upgrades or

the expansion of the central plant are being planned in the context of what the overall

needs of the airport will be when STRP is completed.

Similarly, the Division does not budget for unexpected maintenance costs. For example,

based on a review of the Division’s budget and interviews with key personnel, the Division

does not set aside contingency funds for high-dollar assets, such as the tent roof or the

chillers. Thus, when an unexpected failure occurs with a high-dollar asset, significant

monies must be appropriated from another fund for the cost of repair or replacement.

Further, the Division does not know the condition of all assets when budgeting for

maintenance costs. However, asset condition plays a major role in determining the

priority of maintenance needs. The Federal Real Property Council (Council) supports

asset-condition assessment as a best practice. Specifically, the Council requires regular

condition assessments by all federal agencies for all assets. In addition, Dallas/Fort Worth

International Airport (DFW) performs regular condition assessments as part of its asset

management program. However, the Division does not track the condition of most of its

assets, with the exception of the tent roof.16

The Division is in the process of piloting a new baseline condition assessment program for

all passenger loading bridges and plans to apply the lessons learned to the

management of other airport assets. Components of each passenger loading bridge will

be evaluated—good, fair, or poor condition—and cost estimates will be provided for

recommended actions such as cleaning, replacing, or repair. This information will be

used to determine the strategy for maintaining the passenger loading bridges in the

future. While this is an initial step in completing a

baseline condition assessment, a similar assessment of

all assets is necessary for adequate maintenance

planning.

The Division Does Not Utilize Key Performance

Measures to Monitor Success

The Division does not track many of the key

performance measures that can assist management

in measuring the effectiveness of their maintenance

strategies. This negatively impacts the Division’s ability

to successfully plan for maintenance needs and costs.

The Division does measure performance in a number

of ways, including meeting budget goals, fleet

availability, service calls and work orders completed, and safety statistics. Although these

16 DIA contractor, Bird Air, is retained once a year to evaluate the condition of the tent roof.

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are important measures, the Division does not track maintenance cost per square foot.

The Airport Cooperative Research Program (ACRP), the International Facility

Management Association (IFMA), and other airports all utilize this measure as a way to

evaluate the success of a maintenance program. The ACRP also suggests including

more detailed measures, such as measuring maintenance cost per passenger loading

bridge or maintenance costs per runway.

Other helpful maintenance planning performance measures include ―estimated useful

life‖ and the ―facility operating current replacement value index.‖ The Council requires

federal agencies to report on the estimated useful life of assets to help plan for

maintenance needs. This measure is calculated by forecasting the annualized cost to

replace an asset and the annual cost to maintain the asset. When the annual cost to

maintain exceeds the annualized cost to replace, the useful life of the asset has ended.

The graph entitled ―Calculating Estimated Useful Life‖ demonstrates the relationship

between the two measures.

The Division does not have

estimated useful life

information for most assets,

including the tent roof. As

noted above, the Division is

piloting a baseline condition

assessment of the passenger

loading bridges, which

includes estimating useful life.

However, the Division is using

a contractor to perform the

assessment, which comes at

an expense. Utilizing this basic

forecasting method would

allow the Division to obtain

estimated useful life

information without the

expense of a contractor. Yet, in order to utilize this method, the Division would first need

to determine the asset replacement cost information, which it currently does not have.

Finally, the facility operating current replacement value index is noted by IFMA as a way

to gauge the appropriateness of maintenance spending. This measure can be arrived at

by dividing total annual maintenance expenditures by current replacement value of all

assets. The result represents the level of funding expended to maintain an organization's

portfolio of assets. The National Research Council recommends a ―budget allocation for

routine maintenance and repair to be in the 2-4% range‖ when calculating an

aggregate current replacement value.17 Similar to useful life estimates, replacement

value information is needed to determine the appropriateness of maintenance

expenditures.

17 International Facility Management Association, Research Report #32: Operations and Maintenance Benchmarks (2009).

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Without monitoring these key measures, the Division lacks valuable information necessary

to understand how the organization is performing and whether maintenance spending is

appropriate. Further, the Division’s planning and budgeting process is hindered. If the

Division were to begin tracking and monitoring these measures, Division management

would have a methodology by which to tie decisions to concrete data. Tracking this

information would also create an audit trail for decision-makers and allow the Division to

better justify expenditures and prioritize maintenance needs.

Asset Management Program Best Practices are not Employed

An important component of facility management is an effective asset management

program, which emphasizes managing an asset throughout its full life-cycle: planning,

acquisition, maintenance, renovation, and

disposal. This management approach

enables facility managers to maintain,

operate, and upgrade assets using sound

business practices, engineering principles,

and economic rationale to make

decisions.18

Federal Executive Order 13327 instructs

federal agencies to submit to the Office of

Management and Budget (OMB) an

agency asset management plan adhering

to several requirements.19

Identify and categorize all assets.

Prioritize actions to be taken to

improve operations and financial

management of the assets.

Make life-cycle cost estimations

associated with prioritized actions.

Identify and pursue goals, with appropriate deadlines, consistent with the support

of the agency's asset management plan and measure progress against such

goals.

Establish performance measures to determine the effectiveness of asset

management.

Establish and maintain a single, comprehensive, and descriptive database of all

assets.

Although the Division is not required to follow this executive order, it prescribes valuable

guidelines for implementing an effective asset management program.

18 “FMpedia,” International Facility Management Association Foundation, accessed December 5, 2011,

http://fmpedia.org/gv.aspx. 19

Exec. Order No. 13327, 69 Fed. Reg. 5897, 5898 (Feb. 4, 2004).

http://fmpedia.org/gv.aspx

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This executive order established the Federal Real Property Council (Council), and tasked

the Council with creating additional requirements for federal agencies. The Council

issued guidance to clarify and build upon the executive order.20 The guidance

established ten principles that federal agencies must incorporate into asset

management plans including promoting full and appropriate utilization of assets,

providing appropriate levels of investment to maintain assets, employing life-cycle cost

benefit analysis, advancing customer satisfaction, to accurately inventory and describe

all assets, and that all actions must support agency mission and goals. The guidance

outlines four significant steps.21

A baseline condition assessment of all assets is suggested every two years.

Identification of resources, including human capital, to carry out asset

management plans.

Development of continuous monitoring and feedback mechanisms.

Creation of criteria by which to prioritize maintenance activities that could

include customer urgency, physical urgency based on building conditions,

economic justification, and projected timing and execution.

In addition, three of five respondents to our benchmarking survey reported using

comprehensive asset management programs: DFW, San Francisco International Airport

(SFO), and Hartsfield-Jackson Atlanta International Airport (ATL). Two of these airports,

DFW and SFO, were recently recognized for airport excellence.22 In fact, DFW utilizes in its

asset management plan many of the elements prescribed by the federal Executive

Order. DFW’s plan also includes performing regular condition assessments, using a five-

year rolling plan for both capital improvements and operations and maintenance, and

documenting key processes. Moreover, the survey response from Division management

acknowledges that having a comprehensive asset management program is a best

practice.

DIA would experience many benefits from implementing an asset management

program: increased management awareness of where the organization stands overall; a

structure to help organize and solve issues; and a methodology by which management

could improve its decision-making process and connect decisions to agency goals and

priorities.

20 Federal Real Property Council Guidance for Improved Asset Management, accessed November 9, 2011,

http://www.whitehouse.gov/. 21

Federal Real Property Council, “Guidance for Improved Asset Management,” (December 22, 2004): accessed November 9, 2011, http://www.whitehouse.gov/. Federal Executive Order 13327 § 4(a) established the Federal Real Property Council within OMB to develop guidance and facilitate the success of federal agency asset management plans. The Council is comprised of Senior Real Property Officers, the OMB Controller, the Administrator of General Services, and other Federal officials deemed necessary by the Council Chairman. The OMB Deputy Director for Management chairs the Council. Executive Order 13327 became effective in 2004. Ibid. 22

Dallas/Fort Worth International Airport was ranked third in the world for airport service quality by Airport Council International in 2010 for airports with more than 40 million passengers annually. According to its website, San Francisco International Airport was voted North America’s Best Airport in 2010 by passengers for its modern and efficient facilities and its multi-modal transportation systems.

http://www.whitehouse.gov/sites/default/files/omb/assets/omb/financial/fia/frpc_guidance_final.pdf

http://www.whitehouse.gov/sites/default/files/omb/assets/omb/financial/fia/frpc_guidance_final.pdf

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The Division is not Fully Maximizing its Asset Management Software

The Division has not input all capital assets into its asset management software tool,

Maximo. For example, the tent roof is not contained in Maximo as an asset. The Division

primarily utilizes Maximo to generate preventative maintenance and service call work

orders, which does not maximize the software’s asset management capabilities. While

Maximo has the ability to track a multitude of data elements identified as best practice,

the Division does not consistently enter this information. As a result, the Division is unable

to rely on the accuracy of asset reports due to the inconsistency of information

maintained. Underutilization of Maximo hinders DIA from moving forward with other

available technology.

Asset Management Test Indicates Data Elements Inconsistently Tracked

As an asset management best practice, the Council requires federal agencies to track

and report on specific data elements for all assets. Based on this research, we selected

eleven data elements and tested if the Division was tracking the element within

Maximo.23 Six of the eleven elements warrant further explanation.24

Asset Condition – A general measure of the asset’s condition at a specific point in

time.

Asset Mission Dependency Rating – The value an asset brings to the performance

of the mission as determined by the governing agency.

Asset Operating Costs – Includes recurring maintenance and repair costs, utilities,

cleaning and janitorial costs, and road and grounds maintenance.

Asset Status – Indicates the operational status of the asset as one of the following

categories: active, inactive, excess, or disposed.

Asset Type – Identifies the asset as one of the following categories: building,

equipment, capital improvement, vehicle, or art.

Asset Value – The cost of replacing the existing constructed asset at today’s

standards.

The test determined that the Division does not consistently monitor data elements

considered significant by the Council in Maximo.

23 To determine whether or not the Division is tracking some or all best practice data elements in its asset management

software system, Maximo, the audit team obtained the population of all DIA capital assets from DIA Finance and Administration. From this population, a judgmental sample was selected including buildings, equipment, capital improvements, vehicles, and pieces of art. The Division is responsible for maintaining 13 of the 44 assets selected in the sample. 24

Federal Real Property Council, Real Property Inventory – User Guidance for FY 2011 Reporting, October 4, 2011, pgs. 5 – 13.

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Table 1: Maximo Asset Test Results

Data Elements Tested Present Not

Present

Asset Condition 0 13

Asset Department 13 0

Asset Location 13 0

Asset Maintenance Costs 12 1

Asset Mission Dependency Rating 5 8

Asset Identification Number 13 0

Asset Operating Costs 0 13

Asset Purchase Price 11 2

Asset Status 12 1

Asset Type 0 13

Asset Value 1 12

Inconsistent tracking of asset information results in several negative effects on the

Division. These include but are not limited to the Division’s inability to achieve five

important objectives.

Asset Identification – Identify what types and the number of assets the Division

possesses.

Asset Importance – Evaluate the importance of each asset with regard to

accomplishing the Division’s mission. For example, the central plant is mission

critical, while an inoperable lavatory is not.

Asset Value – Determine the value of an asset or the amount it would cost to

replace the asset.

Forecasting – Identify how much assets cost when forecasting capital

expenditures and maintenance costs in the future.

Data Dashboard – Rely on data and internal reports used for decision making.

Based on the benchmarking of other airport asset management programs at DFW, SFO,

and ATL, consistent tracking of asset information within a facility management system is a

critical component of a comprehensive well-defined asset management plan. Within the

Division, the Fleet Maintenance section proactively enters asset information into Maximo

and uses it to develop custom data queries. The Division recognizes the reporting

functions and data entry processes utilized by Fleet Maintenance as an internal best

practice.

Ability to Use Building Information Modeling Is Limited by Lack of Comprehensive Asset

Tracking

Building Information Modeling (BIM) is a building development tool that is used widely in

the construction industry but has also proven useful in facility management. BIM is

predominately used in the design phase of a construction project to create three-

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The use of Building

Information Modeling

has proven useful in

facility management.

dimensional building models. Once the construction project is complete, facility

managers may use these detailed models in a variety of ways, such as managing asset

inventory, tracking maintenance history, and enhancing knowledge of asset location.

The Federal General Services Administration has

identified the use of BIM as a best practice. Most facility

management software systems lack the capability to

manage an asset throughout its life cycle, whereas BIM

is intended for use throughout design, construction,

operation and maintenance, and disposal. Despite the

significant start-up costs associated with using this

technology, facilities that use it ultimately realize both

efficiencies and cost savings. These cost savings are accomplished by consistently

updating and changing the information model through construction, operation and

maintenance, renovation projects, and modernizations.25 The use of BIM technology will

improve the ability to diagnose problems and plan repairs.

The Division has expressed interest in utilizing BIM in the future. In fact, DIA is utilizing this

technology to assist with the completion of the South Terminal Redevelopment

Program.26 Although it is evident that the use of BIM would assist the Division in both asset

and facility management, the Division is not using Maximo to its full capability. Prior to

investing in the integration of additional technology, the Division should fully utilize the

capabilities of Maximo and ensure that all assets are contained within the system.

Workforce Succession Plan Must Include Additional Key Elements

Due to a large number of retirement-eligible employees and a lengthy, difficult hiring

process, the Division faces significant challenges in developing workforce planning

strategies. Although steps have been taken to create a succession plan, the Division has

not fully incorporated all available workforce planning strategies as identified by federal

and industry best practice.

Replacement of a Significant Percentage of the Division’s Workforce Approaching

Retirement will be Difficult

Division management recognized the need for the development of a comprehensive

succession plan to prepare for future staffing requirements. Management, in conjunction

with the Career Service Authority (CSA), conducted an analysis and found that 25

percent of Division personnel will be eligible to retire in three to five years. Due to budget

shortfalls in 2009, the City offered retirement incentives to all employees who were

retirement eligible.27 Since the City continues to experience economic hardship,

25 “Strategic Asset Management Solution (SAMS): BIM, CMMS and CAFM,” FMLink, accessed November 16, 2011,

http://www.fmlink.com/ProfResources/BestPractices/. 26

The South Terminal Redevelopment Program consists of a public transit center, an airport hotel, and a terminal plaza. 27

The City offered a voluntary retirement incentive program for all employees covered by the Denver Employees Retirement Plan who were at least 65 years old or who were at least 55 years old and met the Rule of 75, meaning their age and years of service to the City added up to at least 75. The incentive was meant to ease budget constraints and reduce the number of employees facing a potential layoff.

http://www.fmlink.com/ProfResources/BestPractices/

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additional retirement incentive programs may be necessary in the future. If all retirement-

eligible employees within the Division retired during a short period of time, the loss of

critical institutional knowledge and experienced staff would impair the Division’s ability to

provide the high level of service required to maintain the airport.

In addition to potential workforce retirements, the Division faces challenges in filling open

positions due to a lengthy hiring process and the difficulty of identifying candidates who

possess the necessary technical requirements. CSA recruitment data from 2011 shows

that it took the Division an average of 103 days to fill an open position.28 Factors such as

Federal Bureau of Investigation required fingerprinting and criminal history background

checks contribute to the length of the

process. The technical nature of

many of the Division’s positions can

further prolong the hiring process.29

For example, it took the Division over

nine months to fill an HVAC—heating,

ventilation, and air conditioning—

position, despite extending offers to

numerous applicants.

Additional Workforce Best Practice

Strategies Should be Implemented

The Division has performed some

initial succession planning. In

practice, a successful planning

strategy provides a systematic

approach to identifying the best

candidates for key positions.30

Specifically, the Division coordinated

with CSA to develop a DIA

Maintenance Division Succession Planning Initiative. Part of the initiative included a pilot

supervisory training program to develop institutional knowledge internally, which could

be lost due to retirement. This six-month program trained 25 Division employees, and, if

successful, CSA discussed offering annual training opportunities for Division personnel.

Currently, the trainees are waiting for a future supervisor position. The U.S. Office of

28 A copy of the Career Service Authority Recruiting Report, was provided to the Audit Team on November 7, 2011. The report

measured the time between the certification date to the effective date that a promotion or new hire was confirmed. In 2011, section manager final approval to posting (forty-four days) plus average of select DIA Maintenance Division sections recruiting period (fifty-nine days) totaled 103 days. 29

According to October 2011 Census Bureau data, the unemployment rate in Denver was 8.6 percent. However, the DIA Maintenance Division Succession Planning Initiative reports that the technical requirements needed to fill Division positions continues to make it difficult to find and hire qualified candidates. 30

U.S. Office of Personnel Management, Human Capital Assessment and Accountability Framework: Succession Planning Process, (Washington, D.C.: United States Office of Personnel Management, 2005), 1.

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Personnel Management (OPM) recognizes offering internal trainings such as these as a

best practice.31

To enhance the current succession planning strategy, the Division should implement a

structured cross-training program as a compliment to their succession plan.32 Cross-

training provides flexibility for management, leverages limited resources, and allows

employees to learn new skills. The Division has successfully cross-trained Department of

Parks and Recreation personnel to assist with basic maintenance needs during the snowy

months. Management from five of the six Division sections indicated they would be open

to internal cross-training of non-trade-specific employees.

However, the Division has not conducted an all-inclusive evaluation to identify cross-

training opportunities. According to the U.S. Government Accountability Office, "Leading

organizations go beyond a succession planning approach that focuses on replacing

individuals and engage in broad, integrated succession planning and management

efforts that focus on strengthening current and future organizational capacity."33

Although the Division has identified a pool of eligible supervisory candidates for training,

this may not fully address all mission-critical positions.34 According to OPM best practices,

training, developing, and maintaining personnel are critical to the success of an

organization.35

Furthermore, established industry standards emphasize the importance of maintaining

both an effective cross-training and succession planning strategy along with continuous

monitoring of each to ensure successful workforce development and retention occurs.36

In addition to the general measures identified by the Division’s succession planning

initiative, successful implementation should specifically measure: whether at risk or hard-

to-fill positions are clearly identified, candidates to fill these positions are designated

early, vacancies are swiftly filled, Division leadership remains involved, and a consistent

methodology is developed that effectively communicates the results of the program on

an on-going basis. Consequently, the Division should implement these best practices into

their succession planning initiatives to ensure adequate human capital resources are

available to execute an asset management program and advance strategic goals.

31 U.S. Office of Personnel Management, Migration Planning Guidance Information Documents: Workforce Planning Best

Practices, (Washington, D.C.: United States Office of Personnel Management, 2008), 2. 32

Cross-training is generally defined as classroom or hands-on instruction that covers several tasks within a department. The U.S. Office of Personnel Management also describes cross-training as mentoring. For example, planned job assignments, coaching and mentoring, and shadowing within a designated personnel position can occur. 33

U.S. Government Accountability Office, Selected Agencies Have Opportunities to Enhance Existing Succession Planning and Management Efforts, GAO-05-585, (Washington, D.C.: United States Government Accountability Office, 2005), 1. 34

A mission critical position is crucial to the successful completion of daily operations. 35

U.S. Office of Personnel Management, Migration Planning Guidance Information Documents: Workforce Planning Best Practices, (Washington, D.C.: United States Office of Personnel Management, 2008). 36

National Cooperative Highway Research Program, Strategies to Attract and Retain a Capable Transportation Workforce, Report 685, (Washington, D.C.: Transportation Research Board, 2011), 103.

http://www.gao.gov/assets/250/246964.pdf

http://www.gao.gov/assets/250/246964.pdf

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A Lack of Information in Maximo is Preventing DIA from Transitioning to a

More Cost-Effective Maintenance Program

The Division relies heavily upon a reactive maintenance approach—which focuses on

responding to and fixing problems and asset failures as they occur—rather than

preventing and predicting problems. A reactive maintenance approach is more costly

and less effective for facility maintenance. However, the Division lacks the basic

information necessary to transition to more a cost-effective approach.

Heavy Reliance on Reactive Maintenance is Costly

Management reported that most Division maintenance activities are reactive in nature.

According to the IFMA, reactive maintenance should not comprise more than 55

percent of all maintenance activities for a facility the same age as DIA.37 We requested

records to determine the percentage of reactive maintenance performed during the

audit period. However, the Division was unable to provide such information and, as a

result, we could not determine whether or not the Division is operating within IFMA

recommendations.

IFMA also suggests that relying on a reactive strategy is more appropriate for new

facilities, since the risk of equipment failure is low. However, once a facility starts to age,

this approach can become expensive. Therefore, maintenance activities should shift to

focus more on preventative measures. Now that DIA is 17 years old, this information

suggests that the Division’s maintenance strategy should begin shifting from reactive to

preventative.

Once a facility begins to age, research indicates that reactive maintenance is the most

expensive and inefficient approach. Specifically, the U.S. Department of Energy’s

Operations and Maintenance Best Practices Guide (Best Practice Guide) notes that

there are many disadvantages to reactive maintenance strategies that far outweigh the

benefits. The Guide suggests that an organization may believe it’s ―saving maintenance

and capital cost, [it is] really spending more dollars than [it] would have under a different

maintenance approach…because, while waiting for equipment to break, we are

shortening the life of the equipment resulting in more frequent replacement.‖38

Predictive and Reliability-Centered Maintenance Approaches Represent Significant Cost-

Savings

Transitioning to a predictive maintenance approach, one that determines maintenance

tasks based on asset condition, has many benefits. The Best Practice Guide reports that

proactive approaches to maintenance reduce costs. Savings are realized because

failures usually require more extensive and complicated repairs, which are far more

costly than mitigating maintenance measures. A functional predictive maintenance

37 International Facility Management Association, Research Report #32: Operations and Maintenance Benchmarks (2009).

38 U.S. Department of Energy, Operations & Maintenance Best Practices: A Guide to Achieving Operational Efficiency, (August

2010): accessed, December 14, 2011, http://www1.eere.energy.gov/femp/pdfs/omguide_complete.pdf.

http://www1.eere.energy.gov/femp/pdfs/omguide_complete.pdf

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Research indicates the most

cost-effective maintenance

program is a reliability-

centered maintenance

program.

program increases a facility’s return on investment and provides, on average, significant

savings.39

25 to 30 percent reduction in maintenance costs

70 to 75 percent reduction in breakdowns

35 to 45 percent reduction in downtime

One downside to a predictive maintenance program is that it requires high start-up

costs. Because this program requires increased monitoring and testing of assets to

properly determine asset condition, facilities that implement a predictive maintenance

program must invest in training for staff and new technologies.

Although predictive maintenance programs have many benefits, research indicates the

most cost-effective maintenance program is a reliability-centered maintenance

program (RCM). RCM has similar benefits to that of a pure predictive approach, but it

accounts for the fact that most organizations do not have the type of resources to fully

implement this pure approach. Typically, RCM uses a mixture of all three types of

approaches: less than 10 percent of activities are

reactive, 25 to 35 percent are preventative, and 45

to 55 percent are predictive activities. RCM

recognizes that not all assets are equally important

to the overall mission of the program and defines

maintenance tasks accordingly. It also incorporates

root cause analysis of equipment failures as a key

element.

Both IFMA and the Smithsonian Institute have

identified RCM as a best practice. IFMA reported that RCM represents a way to reduce

downtime of assets, increase cost-effectiveness, and enhance risk management. The

Smithsonian Institute began utilizing RCM and reported several benefits from the

program, including measurable financial savings, more knowledgeable and efficient

staff, reduced overtime spent on repairs, increased asset reliability, reduced

maintenance backlog, improved decision making processes, and improved energy

efficiency.

Several Factors Prevent the Division from Adopting Cost-Effective Maintenance Strategies

Prior to a transition to either a predictive maintenance or RCM strategy, several key

pieces of information must be known about each of the assets to be maintained. This

includes having a master list of all assets; assigning a priority to each asset; ensuring there

is quality documentation of maintenance performed, especially in the event of asset

failure; and knowing the condition of each asset. As previously stated, the Division does

not know this information for many of its assets. Without this information, the Division

cannot adopt better maintenance strategies or reap the benefits associated with those

strategies. Further, as previously noted, the Division does not know what percentage of

maintenance activity is reactive. Without knowing the breakdown of the types of

39 Ibid.

P a g e 23


maintenance activities performed, it is impossible to determine how big of a shift must

occur.

P a g e 24


RECOMMENDATIONS

1.1 Central Plant – The Deputy Manager of Aviation Maintenance should repair or replace

the inoperable chiller immediately to prevent loss of cool air to the airport and a

reduction in service to customers.

1.2 Asset Management Plan – The Deputy Manager of Aviation Maintenance should identify

next steps and a timeline to develop and implement an asset management plan. Within

the plan DIA should: define the mission and goals of the Maintenance Division

specifically, and align the asset management plan and its priorities with the mission and

goals of the Division; ensure that adequate resources are available to carry out the asset

management plan; explore methods to incorporate predictive and reliability-centered

maintenance program components; and address how quality data will be obtained and

tracked for each asset.

1.3 Five Year Plan – The Deputy Manager of Aviation Maintenance should develop a five-

year rolling operations and maintenance plan to coincide with capital planning.

1.4 Contingency Requirements – The Deputy Manager of Aviation Maintenance should

determine contingency needs and work with Financial Planning and Analysis to

reallocate applicable budget funds.

1.5 Maximo Utilization – The Deputy Manager of Aviation Maintenance should utilize Maximo

to its full potential as it relates to asset management and input all maintained assets into

Maximo.

1.6 Baseline Condition Assessment – The Deputy Manager of Aviation Maintenance should

perform a baseline condition assessment, assign a mission dependency rating, develop

estimated useful life, and determine replacement values of all assets and track this

information in Maximo, including the central plant and the tent roof.

1.7 Performance Measures – The Deputy Manager of Aviation Maintenance should establish

performance measures for continuous monitoring and utilize these measures to drive

decision making for asset replacement, asset repairs, future budget, and prioritization of

maintenance needs. At a minimum, maintenance cost per square foot should be

tracked and monitored.

1.8 Succession Planning – The Deputy Manager of Aviation Maintenance should identify

mission critical positions. Working with CSA, the Deputy Manager should continue to

improve and implement succession planning strategies to offset and minimize the risk to

loss of employees and institutional knowledge. Measures of success should periodically

report on: available internal candidates to fill mission critical positions, a measurable

reduction in the time to fill vacancies, and develop a consistent methodology that

effectively communicates the results of the program.

1.9 Cross Training – The Deputy Manager of Aviation Maintenance should review specific

maintenance positions for cross-training applicability in coordination with the DIA

Maintenance Division’s overall succession planning and strategic plan.

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APPENDICES

Appendix A – DIA Maintenance Division Organizational Chart

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AGENCY RESPONSE

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