A Systems Engineering Approach to Risk-based Asset Management
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1 A Systems Engineering Approach to Risk-based Asset Management Michael Salvato, Executive Program Manager NYCT Enterprise Asset Management Program Office Office of the President Phone: (646) Graham Stroud, CEng Atkins North America Asset Management Practice Lead Phone: (646) June 4, 2013
2 OVERVIEW A system engineering approach to asset management can improve the management of risk Managing asset failure and their consequences is a critical function of an asset management system A risk-based approach to asset management does not mean taking on more risk, rather it manages risk to optimize cost and performance June 4,
3 Many factors are forcing transit agencies to rethink how they manage their assets Global Trends Rapid Urbanization Higher expectations Changing Technologies Climate change International Standards New Federal Requirements State of Good Repair and performance measures Minimum safety performance standards and new safety oversight scheme Requires Asset Management Plans and performance targets Requires Safety Plans with targets and risk strategies Agency Challenges Growing Demands Accelerating Rate of Change Chronic Underfunding June 4,
4 A system engineering approach to asset management will result in improvements to the management of asset risk June 4,
5 Our approach to the Asset Management Program at NYCT International Standards Systems Engineering Enterprise Information Architecture Program Management Change Management June 4,
6 Our mandate is to improve our management system to support evidence based decisionmaking over the lifecycle of our assets Executive Mandate Establish an effective management system that supports informed decision making Demonstrate to customers, funders and other stakeholders that the right things are being done with the budget and that the assets are being managed responsibly June 4,
7 Our Concept of Operations captures our vision for an asset management system that derives optimum value from our assets over their lifecycle MTA Corporate Direction NYCT Strategic Direction Goals and objectives Leadership, People and Organization Planning and Decision Making Business Planning Network Planning Asset Class Planning Operational Excellence Measure performance Procure / Design Build Operate / Maintain Replace / Dispose Asset Knowledge and Information Systems June 4,
8 Decision criteria can be used to align the 3-levels of planning, which in turn inform detailed delivery planning for projects, maintenance and operations Customer Service Guidelines Funding Levels MTA Investment Planning Business Planning Medium term planning to achieve organizational goals and objectives Shared Information Network Planning Optimized plans to achieve the required system performance NYCT Asset Class Planning Optimized plans for an asset class to achieve the required asset performance Delivery Planning Project Planning Maintenance Planning Operations Planning NYCT June 4,
9 High-level business requirements were defined to deliver the NYCT mission Business Planning Network Planning Mission Business Intelligence and Analytics Investment Planning, Forecasting, & Modeling The requirements support an evidence-based planning and decision-making system that support a balanced approach to performance, cost and risk to transit outcomes Network Configuration Management Asset Planning Extended Asset Management Basic Asset Management Functionality June 4,
10 Our proposed asset hierarchy defines basic location, equipment and event data required for vehicles, facilities, guideways and systems Business Category Location Level Additional Location Levels as needed Location Data Equipment Data Installation Location Equipment Location Specs (e.g. System data) Characteristics (e.g. Data, Equip. Specs) Components (Maintainable items) Individual Parts Event Data Work Request Preventive Maintenance Work Orders Malfunction (Failure Event) Corrective Maintenance Work Orders Source: s/meridium_basics_failure_event_coding.pdf June 4,
11 Hierarchical, logical, spatial and temporal models of asset information are need to support life-cycle maintenance, management and analytics Asset Hierarchy Logical Models Business Business Unit 1, 2,..n Temporal Dimensions System Location Function 1, 2, 3, n System 1, 2, n Spatial Referencing Asset Sub system 1, 2, 3, n Component Impacts 1, 2, 3, n Maintainable Item Responsibility 1, 2, 3, n June 4,
12 The asset hierarchy is designed to support the management of risks resulting from asset failure Analysis of failure data over time leads to improvements in equipment reliability June 4, 2013 Source: ISO 14224: Petroleum, petrochemical and natural gas industries - collection and exchange of reliability and maintenance data for equipment 12
13 The proposed hierarchy will help NYCT move to a reliabilitycentered approach to maintenance Reliability-Centered Maintenance (RCM) is a process used to determine what must be done to ensure that any physical asset continues to do what its users want it to do in its operating context What are it s functions? In what ways can it fail? What causes it to fail? What happens when it fails? Does it matter if it fails? Can anything be done to predict or prevent the failure? What if we cannot predict or prevent the failure? June 4, 2013 Reference: Discussions with Network Rail on Risk-based Asset Management, and Moubray, John., RCMII Reliability Centered Maintenance, Second Edition, Industrial Press,
14 NYCT Asset Management System supports evidence-based planning and decision-making that recognizes financial and other constraints June 4,
15 Managing Successful Programmes follows a system engineering approach for the realization of benefits of a change program Corporate Objectives Forms mandate Delivers Corporate Objectives achieved Program Vision Developed into Program Blueprint Defines the Transitions to Realizes Outcomes Benefits Reduce maintenance hours by X% A single, shared view of the condition of our assets across NYCT An Asset Management IT system Project Outputs Creates Capabilities An Asset Management staff fully trained in and using the new system June 4,
16 When we talk about managing assets, for the most part we are really talking about managing asset risk ISO and PAS-55 advocate risk based asset management as a key success factor for asset-intensive systems Cost A risk based approach does not mean taking on more risks, but using an assessment of risks to balance cost, performance, safety, customer service, and social responsibilities Service Improved Transit Outcomes Sustainability Developing our knowledge around asset failure modes and the potential business consequences is key to the performancecost-risk trade-off at the heart of good asset management Safety Performance Reference: Discussions with Mass Transit Railway (MTR) on Risk-based Asset Management June 4,
17 Thank you any questions? Michael Salvato, Executive Program Manager NYCT Enterprise Asset Management Program Office Office of the President Phone: (646) Graham Stroud, CEng Atkins North America Asset Management Practice Lead Phone: (646) June 4, 2013
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