NHI Training Course on Transportation Asset Management

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1 NHI Training Course on Transportation Asset Management Module 2 Asset Management Framework and Principles Ref Asset Management Guide Chapters 1 and 2

2 Learning Objectives Define transportation asset management what is it? Describe the principles of good asset management practice Discuss the benefits of asset management for your agency why do it? Discuss the four key areas of the asset management framework Explain the characteristics of good practice important to each area

3 What Is Transportation Asset Management? A strategic approach to managing transportation infrastructure

4 Principles of Asset Management Asset management entails A strategic view A set of processes A set of technical tools

5 Strategic View Policy based options and consequences are considered in terms of consistency with adopted goals and objectives Performance driven options and consequences are considered in terms of ability to achieve desired outcomes Comprehensive looking at all facets of a problem, and considering options and consequences Long term over an extended time period (e.g., over the life cycle of an asset)

6 Benefits of Asset Management Why Do It? Systematic approach to defining needs and options Improved use of available resources Improved credibility and accountability for decisions Improved performance and service to customers Flexibility to make decisions based on performance Improved communication and collaboration within agency

7 From Front Office to the Front Lines Strategic Information Stakeholders Agency Executives District / Division Managers Section / Group Managers Agency Central Office and Field Staff Tactical Information Coordination Across Agency Units

8 State DOTs are Unique No single, correct approach to asset management But there are useful perspectives for all agencies Improvement can begin today with existing staff and resources Agencies now doing good asset management can improve Organizational and institutional factors pose biggest challenges

9 National Asset Management Scorecard States Doing No Asset Management States Doing 100 Percent Asset Management 0 (Everyone is doing something) 0 (No one is doing everything)

10 Focus of Asset Management At its Core, Asset Management Focuses On Resource Allocation and Utilization

11 A Resource Allocation and Utilization Process Policy Goals and Objectives Planning and Programming Program Delivery Systems Monitoring and Performance Results Quality Information and Analysis

12 Formalizing a Management Framework Refer to management matrices in Guide, Chapter 2 Organized around four functional areas of asset management Policy, goals, and objectives Planning and programming Program delivery Information and analysis Each matrix includes Basic characteristics of good asset management Specific evaluation criteria State-of of-the-art benchmarks

13 Policy Goals and Objectives Characteristics of Good Practice 1. Goals and objectives reflect a comprehensive, long-term view of asset performance and cost 2. Goals and objectives call for good stewardship of assets 3. Policies reflect a performance-driven approach to resource allocation 4. Agency proactively helps formulate asset management policy

14 Example from Policy Goals and Objectives Matrix 1. Goals and objectives reflect a comprehensive, long-term view of asset performance and cost Criteria Defined goals and objectives Asset management is catalyst for decision and action Life-cycle perspective State-of of-the-art Goals and objectives are comprehensive, integrated with other policies, and supported by performance measures Asset management principles are clearly articulated and recognized as driving force for resource allocation Goals and objectives embody life-cycle economic analyses and encourage strategies with long-term benefits

15 Planning and Programming Characteristics of Good Practice 1. Planning and programming procedures are consistent and reinforce goals and objectives 2. Agency considers a range of alternatives for addressing system deficiencies 3. Performance-based concepts guide planning, programming, and monitoring 4. Tradeoffs are based on relative merit and understanding of comparative costs and consequences

16 Example from Planning and Programming Matrix 3. Performance-based concepts guide planning, programming, and monitoring Criteria Performance-based budgeting Benchmark achievement System monitoring Reporting State-of of-the-art Recommended program budgets relate costs to levels of service or performance measures Planning and programming processes identify resources required to maintain existing assets at target performance levels and least life-cycle cost System monitoring helps quantify impacts of program decisions and provides feedback for future planning and programming Progress toward performance targets is measured and reported regularly

17 Program Delivery Characteristics of Good Practice 1. Agency considers all available delivery methods 2. Agency tracks program outputs and outcomes 3. Agency reports program delivery accomplishments 4. Approved program is delivered efficiently and effectively

18 Example from Program Delivery Matrix 4. The approved program is delivered efficiently and effectively Criteria Delivery measures Project and program adjustments State-of of-the-art Measures are defined and tracked to gauge successful program delivery in scope, cost, and schedule The agency has a process to review and approve project changes and resulting program adjustments

19 Information and Analysis Characteristics of Good Practice 1. Agency maintenance high-quality information needed to support asset management 2. Agency collects and updates data cost-effectively 3. Information is automated and on accessible platforms 4. Effective decision-support support tools are available 5. Financial value of assets is known

20 Example from Information and Analysis Matrix 1. Agency maintains high-quality information needed to support asset management Criteria Asset inventory Asset condition Customer perception Program outputs State-of of-the-art Agency maintains complete, current, and accurate inventory of assets Condition data are updated periodically to meet regulatory requirements and provide timely and accurate information to decision-makers Data on customer perception of asset condition and agency performance are updated regularly Information on actual cost and accomplishment is tracked to be able to improve cost estimation

21 Applying the Framework to Your Agency Asset management is adaptable to different agency situations Organizational structure Management culture Funding environment Technological capability Fundamentals of asset management generally applicable to all agencies Implementing asset management customization and tailoring to be expected

22 So is Asset Management a Fad? Can we defend not being strategic not being comprehensive, long-term, policy-driven, performance-based? Can we defend not considering options and tradeoffs? Can we defend not setting performance goals and not measuring results? Can we defend not being in the strongest position to justify our requests for resources?

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