# Presentation: 432448

## Management System  Integration for Asset Management:

**Management System  Integration for Asset Management:**

- Sue McNeil
- Director
- Urban Transportation Center
- University of Illinois at Chicago

**University of California,**
**Berkeley**
**January 2001**

## Outline

- Definitions:
- Management Systems
- Asset Management
- Management System Integration
- Asset Management – Background
- Asset Management Concepts and Components
- Asset Management versus Managing Assets
- How Asset Management is Used
- Management System Integration

## Definitions

**Definitions**

- Management systems
- Asset management
- Management system integration

## What are management systems?

- Bridge management
- Pavement management
- Congestion management
- Maintenance management
- Intermodal management
- Safety management
- Sign management
- Signal management .....

## Definitions – Pavement management

- “ pavement management in its broadest sense encompasses all activities...A pavement management system is a set of  tools or methods that assist decision -makers in finding optimum strategies for providing and maintaining pavements in  a serviceable condition over a given period of time.”

- NCHRP Report 215, 1979.

## What is comprehensive BMS?

- An integrated collection of:
- organizational roles
- procedures
- data
- analytical tools
- computer programs
- support services

## BMS Capabilities

- Determine bridge needs
- Optimize funding allocation and project scheduling with budget constraints
- Develop persuasive funding requests
- Perform “what-if” analyses and policy analysis
- Monitor condition

## Overall BMS Structure

- <date/time>

**Database**

- Prediction Models

** **Cost Models** $**

- Preservation
- Optimization

- Improvement
- Optimization

- Program
- Integration

## What is asset management?

-    Asset management is a systematic process of maintaining, upgrading and operating physical assets cost-effectively. It combines sound business practices and economic theory, and it provides tools to facilitate a more organized, logical approach to decision- making.  Thus, asset management provides a framework for handling short- and long-range planning.

## Management System Integration

- The set of activities undertaken by an agency to insure that the tools, processes and decision making involving its asset bases are coordinated and connected.

## Asset Management Background

**Asset Management Background**

- Why is it important
- Overview

## Why is asset management important ?

**Enables**** an agency to support and justify legislative budget requests.**
**Maximizes**** the benefits from available funding.**
**Shows**** the trade-offs of alternative investment strategies.**
**Supports ****decision making and enhances productivity.**
**Facilitates**** decision making using readily available quantitative and qualitative information.**
**Enables**** appropriate resource allocation and asset optimization.**

## Why is Transportation Asset Management so Important Now?

-  Shift from Construction to Preservation
-  Aging Infrastructure
-  Increasing Traffic & Growth
-     in Movement of Goods
-  Reinventing Government
-  Performance Management
-    &  Accountability
-  Information Age

- Why is Transportation Asset Management so Important** Now?**

## Goals

- Goals

- To provide ready access to quantitative and qualitative data
- To facilitate decision making based on data
- To utilize principles drawn from economics, accounting, risk management, and customer service models
- To ensure efficient resource allocation and asset optimization

**Notes:**
Enhance decisionmakers’ knowledge both of inventory and of asset value
Instill a sense of ownership regarding assets at the operator/plant manager level
Recognize data as a “corporate asset”
Lend credibility in decision making
Encourage decision makers and managers to “think globally, but act locally”
Provide opportunities to reevaluate standards
Provide a strategic implementation perspective by:
replacing turf battles with teamwork,
including training and communications,
recognizing people as assets,
including system user needs.

## Attributes Required to Realize Benefits

- Common performance measures and criteria
- User-friendly environment
- Customer focus
- Accessibility within agency
- Flexibility
- Link to technical, management, and budgetary processes
- Exchange of information

## Asset Management Concepts and Components

**Asset Management Concepts and Components**

- Concept
- Components
- Framework
- Inventory, location, database, analysis and reporting

## Asset Management Concept

## Asset Management Concept

## Components of an AMS

- Asset inventory
- Location/Asset Referencing System
- A centralized database
- Analysis tools
- Reporting tools

## Generic

**Development of **
**Alternatives**

**Data Collection**

**Performance Modeling**

**Decision-Making &**
**Program Development**

**Implementation**

**Monitoring**

**Generic**
**Process**

**Feedback**

## Framework for AMS

## Asset Inventory System

- Identification of assets included
- Inventory of basic characteristics
- Assessment of asset conditions
- Estimate of asset age

## Pathways Video Inspection Vehicle

**Pathways Video Inspection Vehicle**

## Slide 24

## Location/Asset Referencing System

- Geographic location
- Reference system
- Identifiers for equipment

## Central Database

- Contains inventory information
- Facilitates exchange of information

## Other Strategies for Data Access

- Specialized modules
- Outreach

## Analysis Modules

- Forecast of Future Conditions
- Impact Analysis of Various Scenarios

## Reporting Modules

- Presentation of Inventory Information
- Presentation of Analysis Results
- Formats:
- Graphics
- Tables
- Maps

## Asset Management versus Managing Assets

**History**
**Survey** -

## History

- 1970’s - pavement management
- 1980’s - bridge management
- 1990’s - asset management

## Background

- Recognition of common characteristics
- Projects/ components are parts of networks
- Long time horizons
- Presence of trade-offs
- Indivisibility
- Variability in space and time

- Subject to design standards
- Subject to deterioration
- Subject to uncertainty
- Exhibit many modes of failure
- Hierarchical decision process

## History

- 1991 - ISTEA
- 1994- Road Asset Management Guideline - Austroads
- 1995 - Report on Current Practice - Australia
- 1996 - AASHTO/FHWA Workshop - Public Private Perspectives

- 1997 -
- AASHTO/FHWA Workshop - The Future
- AASHTO Task Force formed

## History 

- 1998
- New York State - Concept Plan
- AASHTO Task Force Strategic Plan
- TAC - Primer on Highway Asset Management
- APWA - Asset Management for the Public Works Manager
- 1999
- FHWA - Office of Asset Management formed
- OECD Asset Management Systems Working group
- FHWA/AASHTO Workshop (December)

## Status of Asset Management in the United States

- Survey Questions
- Inventory of Assets
- Investment Decisions
- Workshop Agenda
- Responses

## Survey QuestionsInventory of Assets

- Asset management responsibilities and contacts
- Inventories and condition by type of asset
- Management systems and performance by type of asset
- Asset valuation

## Survey Questions Investment Decisions

- Integration with management systems
- Decision-making tools for investment
- How tools are used
- Use of tools across modes
- Analysis to make allocations to capital versus maintenance
- Quantitative evaluation of capital, operational or maintenance expenditures needs to improve performance
- Comparison of effectiveness of investments
- Relationship of budget expenditures to system performance
- Mechanisms to provide feedback

## SURVEY RESPONSES

- Received responses from shaded states

## Survey Responses (CONTINUED)

- Number of Responses -- 33
- Points of Contact for Asset Management
- none  --	12, one  -- 13, more than one  --	8
- States with Inventories -- 33
- average per state -- 9
- inventories with conditions -- 66%
- States with Management Systems -- 32
- average per state -- 7
- inventories with performance indicators -- 70%

## SURVEY RESPONSES(CONTINUED)

- States with Inventories -- 33
- average per state -- 9
- percent of inventories with conditions -- 64
- Predominant Inventories (with conditions)
- bridge            --	33	(32)
- pavement          --	32	(32)
- road and highways   --	32	(24)
- traffic signals       --	27	(15)
- grade crossing      --	25	(16)

## SURVEY RESPONSES(CONTINUED)

- States with Management Systems -- 33
- average per state -- 7
- percent of inventories with performance indicators -- 70
- Predominant Systems (with performance)
- pavement          --	33	(30)
- bridge             --	33	(30)
- safety              --	26	(17)
- maintenance       --	25	(17)
- traffic monitoring    --	23	(11)

## SURVEY RESPONSES(CONTINUED)

- Apply tools across modes -- 7
- Analysis to allocate capital vs. maintenance -- 10
- CBA of major maintenance expenditures -- 11
- CBA for operational improvements -- 11
- Evaluate how expenditure improves system -- 17
- Relate budget expenditures to system performance -- 22
- Automatic updating of systems based on expenditures -- 13

## Survey Responses -Conclusion

- Many states have elements of asset management
- for specific types of assets
- for specific activities
- Examples include
- Performance based programming
- Integrated maintenance management
- Integrated management systems
- Preservation and improvement tradeoffs

## Why do State DOT’s need asset management?

- Aging infrastructure
- Preservation, and good business practices provide a foundation
- Customer focus means a shift in emphasis from outputs to performance
- Demand for better accountability
- Magnitude of the investment
- Asset management is a vehicle for delivering

## Premises

- One size does not fit all
- Champions are needed
- Dependent on a corporate database
- Builds on content, concepts and substance of other management systems
- Recognize that organizations have frequent leadership changes, and need to develop a means for continuity in asset management

## Common Thread

**Common Thread**

- ... Performance

## Performance What is it?

- Link between the user and the physical asset

**Mission:**
**smooth, safe, **
**economic and **
**efficient road **
**systems**

**Operational **
**indicators:**
**e.g miles of road**
**accidents, **
**roughness**

**Stakeholders:**
**service providers**
**private and **
**commercial **
**road users, policy**
**makers &**
**regulators**

- [Modified from
- Paterson and Humplick]

## Performance Why is it important?

- Fundamental concept
- Provides link to decision making
- Critical to identifying the true value of assets
- Foundation for performance based planning

## Performance What have we learned?

- For example, Minnesota
- Three areas:
- System performance
- Public values/issues
- Organizational Performance

## Performance Minnesota -

- System Performance
- Time/ Directness
- Safety
- Condition of infrastructure
- Access/ Basic service levels
- Public values/issues
- Environment
- Socioeconomics

- Organizational Performance
- Performance/ Productivity
- Progress towards targeted focus areas

## Performance What are the issues?

- Good data
- Consistent and continued application
- Customer input
- Benchmarking
- Not the answer

## Examples – How asset management is used

**Examples – How asset management is used**

- New York State
- Washington Montana

## NYSDOT’s Program Update Process

- Tradeoff analysis
- Using forecasts to set program goals and allocations
- Examples:

## Slide 54

## Slide 55

## Slide 56

## NYSDOT’s Program Update Process

- Executive Level Review
- Looking across programs and regions
- Direct result of asset management.

## Washington State DOT

- Use asset management for 20-year forecasting of revenues and costs
- Example:

## Highway System Plan

- PPSC
- 6/17/97

***Highway System Plan***

***1999-2018 (1997 Billion $)***

***20 Year Revenue Scenarios***

**$0.0**

**$11.4**

**$18.3**

**$41.0**

## Montana DOT

- Similar budget to some counties
- Asset management is part of the performance planning process
- Examples:

## *

- Performance Programming Annual Cycle

- INVESTMENT ANALYSIS

- PERFORMANCE OBJECTIVES

- RESOURCE CONSTRAINTS

- FUNDING PLAN APPROVAL

- PROJECT NOMINATION

- SYSTEMS PERFORMANCE QUERY TOOL

- TECHNICAL REVIEW

- PUBLIC COMMENT

- STIP APPROVALS

- POLICY DIRECTION FROM STATEWIDE PLAN

**DEC.**

_**APRIL**_

**AUG.**

- Program Development Module

- Funding Plan Module

- Policy Module

- Updated _+_ 5 years

## Funding Plan Module

- Investment Analysis

- Performance Objectives

- Resource Constraints

- Funding Plan

- GOAL:  A matrix with sufficient detail to allow various roll-ups with funding either Directly or Proportionately based on Performance

- NHS STRATEGY
- Financial District

- 2

- 3

- 4

- 5

-  Rehab

- Pav Pres.

- Recon to Geom Design stand.

- Recon to address Capacity

- Rehab /Recon Bridge

- Safety

- $

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- Misc.

- $$$

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- 1

**Example:**

## Issue:

- How do we structure an environment in which “what if” questions can be explored?

## Possible Solution

- Simulation tools
- Forecasting tools

## Issue:

- The ability to collect data outstrips our ability to analyze it.

## Possible Solution: Data Mining and Knowledge Discovery

**Classification** algorithms
**Clustering** algorithms
**Dependency modeling** algorithms
**Summarization** algorithms
**Deviation detection** algorithms

## Example

- MN Road – Weigh in motion data
- Michigan – spent 8 years and millions of dollars integrating data
- Are there patterns?
- Are there correlations?
- Are there locations where “odd” behavior/ performance is observed?

## Issue: Data 

- Gaps
- Duplication
- Many different levels of aggregation

## Possible Solution: Redesigning the Data Collection Process

- Information

## Management System Integration

**Management System Integration**

- How does it fit?

## Management System Integration Issues

- For example:
- How does pavement management fit in?
- OR
- What role does pavement management play in each of these examples?

## Pavement management

- Input to asset management
- Source of data
- Base of experience
- Complement to asset management

## Questions?

- How much should you spend on signs versus equipment?
- How much should spend on maintenance versus expansion?
- What resources will you need 10 years from now?

## Lessons learned from PMS

- Recognition of classes of “users”
- Elected officials
- Budgets
- Impacts
- Future funding
- Administrators
- Data
- Priorities
- Current status
- Impact of changes (budget)

- Technical staff
- Data
- Analysis methods and procedures
- Models
- Ability to include new technology

## Summary

- Asset management is not a new concept
- Asset management is not a substitute for pavement management
- Asset management is broader than pavements, or bridges, or signs – other types of infrastructure, all phases of the life cycle.
- Asset management uses the same principles as other management systems
- Asset management focuses on the network level
- Asset management is not a system, it is a framework or concept.

## Resources

- APWA
- FHWA Office of Asset Management

## Coming soon....

- Synthesis of current practice (NCHRP project)
- Asset Management guide
- Training

## Still needed...

- Tools to support asset management
- Educational programs
- Good examples of successful efforts

## Asset management is what you make it!