Asset ManagementAsset ManagementBusiness FrameworkBusiness Framework
New BrunswickNew BrunswickDepartment of TransportationDepartment of Transportation
AASHTO ConferenceAASHTO Conference
April 16, 2008April 16, 2008
Asset Management at NBDOT
• NBDOT’s Asset Management Business Framework (AMBF) provides the department with information, tools, business processes and resources to be able to select the:
–right treatment for our assets; –at the right place; –at the right time
Asset Management at NBDOT
Identifies the best time to apply the most economical treatment; minimizing the life-cycle cost
Introduces an early intervention strategy that, over time, will provide an acceptable performance level at the least cost
What is an Asset?
• Capital assets include:– Highways;– Bridges;– Ferries;– Highway fixtures;– Buildings
• Highways and bridges are being introduced first at NBDOT. Other assets will follow during a continuous improvement process.
Why Asset Management Now?
• Accountability– Protect the public investment in our infrastructure
by being fiscally responsible in the planning and execution of departmental activities
• Sustainability Must be able to sustain the condition of a large inventory of
assets over time:3000 Structures18,600 km highways
• 6,000 km (Asphalt)• 9,300 km (Chipseal)• 3,300 km (Unsurfaced)
1,000 km (local asphalt)
12,600 km (chipseal + unsurfaced)
Rural Road Infrastructure = 13,600 km
+
Why Asset Management Now?
Why Asset Management Now?
• Aging infrastructure & increasing traffic and growth in movement of goods
0
20000
40000
60000
80000
100000
120000
Effective Deck Age
Deck a
rea (
Sq
uare
Mete
rs)
Mature Decks
Why Asset Management Now?
• Information Age (data rich)– Innovative data collection techniques;
– high speed networks;
– advanced data storage capabilities; and
– Geographic Information Systems (GIS)
• The above have given us the ability to process large amounts of information required to do long-term predictive modeling for asset management.
Premise Behind Asset Management
Age
Asp
hal
t C
on
dit
ion
0 yrs 11yrs 17yrs
$1 invested in minor rehab at this point…
Fair
Poor
Very Good
would cost $2-3 for major rehabif delayed until this point…
and $5-6 for reconstructionif delayed until this point
Steep Condition Drop
Good
Overview of Modeling Assets Treatment Selection
PS
DI
Surface Age
100Preservation
Minor Rehab
Major Rehab
Preservation
Minor Rehab
Major Rehab
Long-termInvestment
Plan(Mathematical
Model)
Asset Condition Asset Inventories
4 Year Program Tool
Treatment Information Deterioration Curves
1- year program
20-year plan
Conceptual Budget
Other Criteria
Performance Measures
Actual Budget
Must Do Projects
The Requirement
• Needed to answer:– What investment (now and future) is required to
deliver a defined level of service (condition).
AND
– What level of service (Asset Condition) can we provide with a defined investment.
Using the Model
Three scenarios were generated for the entire highway network using the asset management model:
A. $X million/year
B. $2X million/year
C. Least Life Cycle Cost/Asset Management
Approach
KM
of
Roa
ds
in P
oor
Con
dit
ion
20 Year Rehabilitation Funding Effects on Entire Highway Network Condition (Poor Roads)
A
B
CLeast Life Cycle Cost/Asset Management Approach
2027202720072007 202020202015201520102010
700 -
1,400 -
11,500 -
$ 2X$ 2X
$ X$ X
$ 3X$ 3X
20272027
KM
of
Roa
ds
in P
oor
Con
dit
ion
20072007
20 Year Rehabilitation Funding Effects on Highway Network Condition (Poor Roads)
A
B
C
$ 3X $ 3X (Worst First)(Worst First)
Least Life Cycle Cost/Asset Management Approach
20 Year Rehabilitation Funding Effects on Entire Highway Network Condition (Poor Roads)
202020202015201520102010
700 -
1,400 -
11,500 -
$ 2X$ 2X
$ X$ X
$ 3X$ 3X
The Project and Challenges
• Four years• $1.5 million• Communication and Consensus building• Change Management• Political Buy-in• Competition from other Departments
A New Direction – Cultural ChangesCurrent Future
Worst-First Least Lifecycle Cost
Program Focus (Silos) Network Focus
Event & Consumption Focus Asset Focus
Short-term Budget Management Long-term Management
Budget Cycle Planning Ongoing Planning
Network-level Data Collection Sampling Inspections
Budget Measurement Performance Measurement
Financial Valuation Managerial Valuation
Continuous Improvement ++++
The Results
• For fiscal 2008 – 2009 the Department has received the largest ever capital budget for rehab of roads and bridges - $340M and a commitment for similar funding for the next two years.
• Projects are coming in at lower than expected bids because of the economies of scale
• Other Provincial Departments with capital budgets have been instructed to implement similar models.
NBDOT’s Innovative Asset Management Solution
• NBDOT received a 2007 Knowledge Industry Recognition Achievement (KIRA) Award & and is a Canadian Information Productivity Award (CIPA) Finalist;
• Featured in CIO and Government Executive Magazines;
• Other provinces as well as countries such as Australia
and Costa Rica are interested.
NBDOT’s Innovative Asset Management Solution
• University of New Brunswick to further develop NBDOT’s AMBF;– Develop new/expanded AMBF methodologies– Develop software solutions for transportation and
municipalities. Expand on NBDOT’s solution.– This will lead to the future establishment of:
• An Infrastructure Management Maturity Model - IM3
• An Asset Management Center of Excellence in New Brunswick
InfrastructureM anagementM atur ityM odelIM 3
M easurement of an Organization's A sset
M anagement CapabilitiesA gainst Best Industry P ractices
Level 1Knowledge &Experience
Level 6Legislated
Level 2InventoryEnabled
Level 3Modeled
Level 4Optimized
Level 5Continuously
Improved
Center of Excellence
• Initially a single graduate course• Major in civil infrastructure sustainable management
– Combines: • traditional engineering,• Finance & economics,• management techniques,• sociology,• information systems
• Draw students and researchers from around the globe• Produces Asset Management research and graduates
Contacts
Ken Fitzpatrick – Director of Information Management and Technology
Kim Mathisen – Assistant Director of GIS
Mark Gallagher – Civil Infrastructure Management xwave