Maintenance Management and Asset Management

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1 Defining and Understanding the Difference Between Maintenance Management and Asset Management Dr. Simon Lewis AgileAssets, Inc. 12th AASHTO-TRB Maintenance Management Conference Annapolis Maryland, July 19-23, 2009

2 1 AD to 2009 AD Your choice? Maintenance Management ASSET MANAGEMENT I INFRASTRUCTURE MANAGEMENT

3 Purpose Clarify roles of Maintenance Management (MM) and Asset Management (AM) For many, still at least a relative issue? Options: Synonymous? Are they different? Overlap? How? No one view correct But, at least be clear(er)! 8/7/2009 AASHTO SCOM/TRB MMS

4 Agenda 1. Introduction and Context 2. What is MM? 3. What is AM? 4. Contrast and Conclusion 8/7/2009 AASHTO SCOM/TRB MMS

5 1. Introduction and Context

6 Big Numbers: The Nations highways are valued at more than $1.75 trillion Nearly $130 billion is invested annually to preserve and improve the highway system Issue is Important Bridge Age Class Distribution Based on Year Built Infrastructure management profession needs to be unified to achieve goals Deck Area (m) AGE (Year) /7/2009 AASHTO SCOM/TRB MMS

7 Highway Management Cycle Policies Performance Monitor Implementation Highway Management Information Inventory Condition Resources Treatments Productivity Unit Costs Economic Parameters Classification and Standards Needs Assessment 12/22/2006 Finance and Resources

8 Perspectives Draw From US field agency experience TRB MMS Conference FHWA Asset Management Office NCHRP publications AASHTO The AM International Infrastructure Guidebook Canadian Experience Other US experience Transportation Asset Management Conference 8/7/2009 AASHTO SCOM/TRB MMS

9 SCOH: AM Definition 2006 In order to fulfill its mission, the member departments need a common definition for asset management. What follows are the current definitions of asset management. It is motioned to combine these meanings into a single definition for use by the entire transportation community and to replace any previous descriptions. AASHTO s Asset Management Guide definition: A strategic approach to managing transportation infrastructure FHWA, Office of Asset Management definition: Am is a systematic process Highways Subcommittee on Maintenance Definition (July 2005). AM is a strategic and systematic process Motion New Definition to Supersede Previous Descriptions 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. 8/7/2009 AASHTO SCOM/TRB MMS

10 2. What is MM?

11 Physical Assets pavement street lighting crossings bridges median strip traffic controls road surface slopes signs Etc. 8/7/2009 AASHTO SCOM/TRB MMS

12 Maintenance Activities & Data

13 MM CHARACTERISTICS Definition CATEGORY MM CHARACTERISTICS Tactical activity to create day-to-day work orders What is managed? Materials, people, equipment, budgets, work orders When? What it does? Daily, weekly, monthly yearly operation Assign activities, track goods and materials, create work orders, etc. Who does it? How? Key focus: typically, Districts in a DOT, or local road agencies Budgets historically set by Chief Engineers decision and/or the annual budget food fight 8/7/2009 AASHTO TRB MMS SCOM/TRB 2009 AgileAssets MMS 2009 Inc. 13

14 MM Process Phase Activities 1 Asset Valuation Not typically expressly done 2 Performance Goals & Measures 3 Condition & Performance Assessment Largely Engineering focused. Equipment, resources, efficiency. Some Safety Inspection based 4 Alternative Analysis Undertaken on a qualitative basis; B/C used for Fed; May manually generate alternatives 5 Trade-off Analysis Performed by executive on a program basis from knowledge and experience 6 Program & Budget Review Management annual budgets, thru to, monthly monitoring programs, etc 7 Monitoring & Feedback Appropriate data access levels across programs; continuous improvement 8/7/2009 AASHTO TRB MMS SCOM/TRB 2009 AgileAssets MMS 2009 Inc. 14

15 Typical MM input 8/7/2009 AASHTO SCOM/TRB MMS

16 Matched to Standards 8/7/2009 AASHTO TRB MMS SCOM/TRB 2009 AgileAssets MMS 2009 Inc. 16

17 Work Request 8/7/2009 AASHTO TRB MMS SCOM/TRB 2009 AgileAssets MMS 2009 Inc. 17

18 Staff Resource Planning 8/7/2009 AASHTO SCOM/TRB MMS

19 Typical Output 1 8/7/2009 AASHTO TRB MMS SCOM/TRB 2009 AgileAssets MMS 2009 Inc. 19

20 Typical Output 2 8/7/2009 AASHTO SCOM/TRB MMS

21 3. What is AM?

22 What is Transportation AM? A philosophy Long-term view, Comprehensive, Proactive A process Investment choices, tradeoffs, decisions Organizational roles and responsibilities Improved horizontal and vertical communication A set of technical tools Management systems Integrated Data Specialized methods 8/7/2009 AASHTO SCOM/TRB MMS

23 AM Assets Structures Bridges AM - STRATEGIC Pavement Drainage Roadside Traffic IMMS Operational Special Features BMS(Pontis+) Project Bridge database (NBIS) Inventory - condition PMS(HV)/ IMMS(LV) Project AMS Pavement Inventory - condition IMMS AMS Non-Pavement Inventory - condition IMMS AMS Non-Pavement Inventory - condition IMMS AMS Non-Pavement Inventory - condition IMMS AMS Non-Pavement Inventory - condition Bridges Overall Inspections Deck Superstructure Substructure Paint Retaining Walls Overhead Signs Structural Culverts Sound Barriers 12/22/2006 Pavement Bituminous Concrete Stabilized Lanes Shoulders Overall Testing Pipes and Culverts Curb and Gutter Ditches Drains Drop Inlets Catch Basins Sidewalks, Ramps Stormwater Ponds Overall other Vegetation Control Grass Trees and Brush Landscaping Roadside Slopes Fences Bicycle paths Wetlands Cleaning TMS Traffic Services Ops Guardrails Traffic Detection Loops Impact Attenuators Barriers Historical Markers Counting Devices Signs/Traffic Control Lighting Pavement markers Signals Signs Wrecker Service Runaway Truck Ramps Tunnels Rest Areas Waysides Drawbridges Ferries Toll Facilities Weigh Stations Bus Shelters Parking Lots Parking Decks

24 AM CHARACTERISTICS CATEGORY Definition What managed? When? What it does? Who does it? How? AMS CHARACTERISTIC Long-term, corporate decision-making, more pro-active than reactive, Performance-based decision-making Long-term measurable performance indicators More relevant corporate measures Budgets at high-level; condition of assets Annual Economic optimization For senior management Economic tools 8/7/2009 AASHTO SCOM/TRB MMS TRB MMS 2009 AgileAssets Inc.

25 AM Process Phase Activities 1 Asset Valuation Deteriorated financial value or Modified replacement cost 2 Performance Goals & Measures 3 Condition & Performance Assessment Engineering (e.g., Technical measures for asphalt), Safety, VOC, Envir. Include economic measures 4 Alternative Analysis Gen alternatives; Math optimization 5 Trade-off Analysis Use NPV/Cost or other economic measures 6 Program and Budget Review 7 Monitoring and Feedback Management of program focused on annual budgets, thru to, monthly monitoring programs Annual and constant update. Data across all areas. 8/7/2009 AASHTO TRB MMS SCOM/TRB 2009 AgileAssets MMS 2009 Inc. 25

26 AM Additions to MM Optimal Economic Allocation of Resources Stewardship / custodianship of public assets; Financial Management; economic assessment of various tradeoffs; Reduce short-and long-term costs; tie resource allocations to savings from replacement Information: Improved Transparency in Decision Making; Communication; Improve documentation of decisions; Improve information and access to information; Enhance knowledge of inventory and asset value; Improve information on return on investment and value of investments 26

27 Resource Expenditure 8/7/2009 AASHTO SCOM/TRB MMS

28 Managerial Reporting 8/7/2009 AASHTO TRB MMS SCOM/TRB 2009 AgileAssets MMS 2009 Inc. 28

29 Infrastructure Debt Index $10,000 32% $8,000 26% 28% 30% 30% Annual Value (millions) $6,000 $4,000 $2,000 5% 7% 9% 12% 14% 16% 18% 20% 22% 24% 20% 10% 2% $0 0% Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Cummulative Costs Cummulative Funding Infrastructure Debt Index 8/7/2009 AASHTO SCOM/TRB MMS

30 4. Contrast and Conclusion

31 MM & AM: Simplified Comparison Primary Goal Level of data Principal Activities MM Infrastructure performance Detailed Task-level Financially cost ed preservation, cleaning, replacing, etc AM Economic performance of assets Higher-level Project-level Economically cost ed preservation, maintenance, replacement Add capacity No Yes Principal Time focus 1 (to 3) years 1 to 10 years Staff focus Operational, District level Senior management Principal output Managed tasks Optimal economic package of projects 8/7/2009 AASHTO TRB MMS SCOM/TRB 2009 AgileAssets MMS 2009 Inc. 31

32 Maintenance Management & Asset Maintenance Asset Management builds on: data from Maintenance Management activities Asset Management may provide budgets to MM 8/7/2009 AASHTO SCOM/TRB MMS

33 AM: Integration Framework Maintenance Pavement Management System Management System Bridge Management System Maintenance Pavement Management System Roadway Hardware Management System Other Highway Management Systems Tunnels Materials Equipment Construction Roadside Roadside Facilities Asset ASSET Management System System 8/7/2009 AASHTO TRB MMS SCOM/TRB 2009 AgileAssets MMS 2009 Inc. 33

34 AM: Aggregate MM Data Asset Management System Data Maintenance Management System 8/7/2009 AASHTO SCOM/TRB MMS

35 MMS/AMS Pyramid STRATEGIC CORE TIER AUTHORITATIVE DIRECTIONS PERFORMANCE STANDARDS MANAGEMENT TIER (AUTHENTICATED) MEASURES OPERATIONAL TIER Functions (Contracting, Eng'g, Construction, Inv. Plng., Network, Property, etc.) Business Data LRS Locations (Regions, Corridors, Hwys, etc) Locational Data 8/7/2009 AASHTO TRB MMS SCOM/TRB 2009 AgileAssets MMS 2009 Inc. 35

36 AM - MM Tradeoff STRATEGIC Planning/Budgeting Data Central Control Statewide, Program View XDOT Managed Automated Data Collection vs. TACTICAL Engineering/Operational Data District Control District View Vendor Managed Manual Data Collection 8/7/2009 AASHTO SCOM/TRB MMS

37 MM --> MM with AM Current Worst-First Program Focus (Silos) Event Focus Short-term Budget Mgmt. Budget Cycle Planning Routine Inspections Budget Measurement Financial Valuation Future Least Lifecycle Cost Network Focus Asset Focus Long-term Asset Mgmt. Real-time, Ongoing Planning Sampling Inspections Performance Measurement Managerial Valuation Continuous Improvement of Model & Process 8/7/2009 AASHTO SCOM/TRB MMS

38 AM & MM High/Low Integration Options LEVEL AM FUNCT. MM FUNCT. DATA WORK APPRX COST APPRX TIME 1 AM HIGH- LEVEL DATA Strategic Off-theshelf AM Separate MM Use existing Low $0.5m - $2.0m 6 months to 1 year 2 3 MIXED APP- ROACH MM FEED AM Strategic and some operational/ tactical Strategic and much tactical Separate MM Custom work AM & MM integrated Some limited data collection and cleanup Significant data work Medium 1m -$3m High $1.5 to $10m 1 to 3 years 2 to 5 years+ 8/7/2009 AASHTO TRB MMS SCOM/TRB 2009 AgileAssets MMS 2009 Inc. 38

39 Technology is Available Modular Framework Pavement Analyst Bridge Analyst Executive Decisions Safety Management System Maintenance Manager Fleet, Equipment, Materials, Labor Core AgileAssets Functions Asset Inventory Base Linear Reference Security User Organization Terminology Data Management Reporting Graphing Communications System Utilities Common Data Model External Systems (e.g., SAP. Advantage, PeopleSoft., etc) LRS Network Data Manager Mobile Data Collection GIS 8/7/2009 AASHTO SCOM/TRB MMS

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