Optimizing Plant Infrastructure: A Formalized, Asset
Management Approach
to Long-Term Capital
Planning
Matt Manchisi – Hazen and Sawyer
AWWA NJ Fall Meeting 2018Neptune, NJSeptember 18, 2018
Today’s Focus
AM Pilot: Water Treatment Plant
Background
Outcomes
Next Steps
Discussion
Background
Department of Utilities Has a Long History
Water and wastewater services
date back to the late 1800s
Water treatment capacity
136 mgd
Over 750 miles of sewer collection system (9% forcemain) and 135
sewer pump stations
822 miles of water distribution system piping
and six booster stations (4 potable, 2 raw) and nine water
storage tanks
Typical AM Drivers and Trends
External Forces Asset Age & Condition
Service Levels Cost & Efficiency
• Aging/deteriorating
infrastructure
• Justification for
capital/O&M
investment
• Regulatory compliance
• Growth and demand
• Pressures from the
public and elected
officials
• Demand for improved
service levels and
reliability
• Prevention of critical
asset failures
• Drive to do “more
with less”
• Move toward a
“businesslike” culture
• Large organizations embracing AM as an organizational model
• Focusing on capital planning, business case development and project justification
• Leveraging data in a more effective way (data-driven management)
• Focusing on machine-learning/predictive analytics
DRIVERS TRENDS
Initial AM Strategy Was Simple
1. WHAT do we have?
2. WHAT condition is it in?
3. WHEN should we replace/rehabilitate?
4. WHAT will it cost?
5. HOW do we prioritize assets from different systems?
6. HOW do we sustain the program?
AM Pilot: Water Treatment Plant
AM Inventory and Analysis
Reporting
Capital Planning
Risk Assessment
Work Management
Inventory/ProcurementTracking attributes: date created, created by, last edit, etc.
Physical attributes: make, model, manufacturer, capacity
Financial attributes: install date, historic / replacement cost, effective useful life, remaining useful life
Asset management attributes: probability and consequence of failure
Core AM Tool - CMMS
Typical Asset Hierarchy
1 Organization
2 Network
3 Utility Type
4 Facility
5 Process
6 Group
7 Asset
8 Asset-Child
• Focus on Core Functions 1st:
• Asset Inventory Completeness
• Work Order Management
• Risk Assessment
• Cost Accounting
• Phase In Supporting Functions:
• Parts Management
• Purchasing
• Fleet Management
• Key Technical Elements:
• GIS Integration
• Reporting
Inventory Management for “fixed” assets: treatment plants, pump stations, buildings, etc.
WTP Asset Attribute Data
• Approx. 2,500 asset listings
• LIMITED HIERARCHY
• Developed asset relationships:• Location• Discipline• Asset type
• Created hierarchy• Building #• Building Name• Process• Group• Asset
Streamlined Data Collection, Analysis, and Information Sharing
• ESRI Survey-123
• Review, reconcile, and add CMMS asset data
• Physical condition assessment
• Data compilation
• Ability to embed and link data, photos, as-builts
360o Photos Can Easily Link to Inspection Forms
Wet Well Inspection, February 2017
Risk Assessment
Probabilityof Failure
Consequence of Failure
Risk Score
• Mortality• Level of Service• Capacity• Efficiency
Failure Mode
• Economic• Social/Safety• Environmental
Consequences
Redundancy Factor
Consequence
Condition Assessment
• How likely is the asset to fail?
• Two considerations:• Physical Condition: current state of
repair and operation
• Performance Condition: current and future requirements
• Each is scored separately
Condition = (Physical x 0.7) + (Performance x 0.3)
Evaluates the Probability of Failure
Physical Condition ScoringWhat Does 1 to 5 Mean?
Electrical/Instrumentation 1 2 3 4 5
Heat/Odor No abnormal heat or odor evident.Mild odor and/or mild heat is evident. No damage is evident
that has been caused by excessive heat.
Odor and heat are evident and should be addressed in the
near term. Asset is still functional but showing signs of wear
due to the excessive heat.
Significant wear from heat is evident and the asset should be
replaced or is in need of a major overhaul.
Such excessive heat or odor that asset should not be in
operation.
External Corrosion No corrosion present. Less than 10% corrosion present 10 - 25% corrosion present 50 - 75% corrosion present Over 75% corrosion present.
NameplatesNameplates are legible and in "like new"
condition.Nameplates are legible but showing signs of wear.
Nameplate data is fading/difficult to read. Nameplate
beginning to detach from asset.
Majority of nameplate data is missing and/or nameplate is
barely secure to asset. Consider replacing nameplate.
Nameplates are missing or are illegible. Nameplate should be
replaced.
WiringWiring and/or wire labeling meets all
standards and shows no wear.
Wiring and/or wire labeling is starting to show signs of wear,
however no performance deterioration is present.
Wiring and/or wire labeling is showing signs of wear which
indicate reduced performance may be possible.
Wiring and/or labeling is showing signicant deterioration
which should be replaced or overhauled.
Such excessive wire deterioration that the asset should not be
placed in operation.
Conduits and Support
Brackets
Conduits and support brackets meet all
standards and are well maintained. No
wear is evident.
Typical wear is evident but does not allow fluid to penetrate.
Maintenance is required to repair damage to conduit and/or
supports which could allow fluid to penetrate and contact
wiring.
Conduit and/or brackets show signifcant wear/deterioration,
should be replaced or overhauled.
Conduit needs immediate replacement and asset should be
locked out until replacement has occurred.
Indicator LightsIndicator lights are fully functioning, bright,
and visible.
Indicator lights are fully functioning, however showing signs of
wear/dimming.
Indicator lights are functioning, however, full attention must
be given to distinguish what they are indicating.
Indicator lights are barely functioning. Cannot tell if on or off,
or flickering frequently.Indicator lights are not functioning.
Push ButtonsPush Buttons are fully functioning, bright,
and visible.
Push Buttons are fully functioning, however showing signs of
wear/labels wearing off.Push Buttons are sticking and in need of maintenance.
Push buttons are barely functioning. Needs to be replaced or
overhauled.
Push buttons are not functioning. Equipment should not be
operational.
Doors/Seals No damage to doors/seals. No damage to doors/seals. Seals are showing signs of wear. No damage to doors.Doors no longer shut entirely and seals are missing
pieces/deteriorating.
Seals are deteriorated and/or doors have extensive damage so
that equipment is no longer protected. Doors/seals should be
replaced immediately.
Vibration/Noise No abnormal noise/vibration is evident. Abnormal noise is present, no vibration is present. Both abnormal noise and vibration is apparent. Non-structural damage due to abnormal vibration is present. Structual damage due to abnormal vibration is present.
Fluid/Water Damage No fluid and/or water damage is evident.Past moisture accumulation is evident but no rehabilitation is
required. Moisture problem is not reoccuring.
Moisture accumulation is evident and continuous. Increased
maintenance is required to maintain typical operation.Immediate replacement is needed due to water damage.
Wiring is submerged and should be locked out until wiring is
replaced and leak source repaired.
Coatings No coating damage/deterioration present. Less than 10% coating/deterioration present 10 - 50% coating/deterioration present 50 - 75% coating/deterioration present Over 75% coating/deterioration present
Physical Damage No physical damage to equipment. Less than 10% physical damage present 10 - 50% physical damage present 50 - 75% physical damage present Over 75% physical damage present.
Display ScreenDisplay screen is fully operational and no
damage is evident.Less than 10% damage is evident to screen. 10 - 50% of damage is evident to screen. 50 - 75% of damage evident to screen. Consider replacing.
Screen is no longer functional and needs to be replaced. Over
75% damage evident to screen.
Pests/Critters No signs of pests or damage. Signs of pests, but no damage. Signs of pests, minor damage.Pests are present with extensive damage. May need pest
control.
Pest infestation; requires immediate pest control and
replacement of asset.
Performance Condition AssessmentScoring Guidelines
Consequence of FailureScoring Guidelines
CoF = ∑(Safety x 0.25) + (LoS x 0.30) + (Reg x 0.30) +
(O&M x 0.15 )
• Sample Criteria:• Safety impacts
• Level of Service impacts
• Regulatory compliance impacts
• O&M (Cost) impacts
• One set of criteria for all vertical (facility) assets
Outcomes
Risk Assessment ResultsAsset Risk Rating Matrix
Determined Asset Replacement Costs
1. Manufacturer/vendor research
2. RS Means/CostWorks
3. Recent bid tabulations
CIP Project Cost Development
1 2
3 4
Review High Risk Assets
Review Assets Near EUL
Develop Bundled Projects
Align with Existing CIP
• Assess best risk reduction strategy
• Determine capital maintenance, or business strategy
• Determine if additional testing or analysis is required
• Determine if run to failure is an option
• Bundle projects into logical groups
• Review medium risk assets to see if they should be included
• Evaluate and prioritize with existing capital projects
• Review R&R growth, and enhancement balance
Effective Useful Life (EUL) and Remaining Useful Life (RUL)
• EUL: the period over which an asset is expected to be useful for its intended purpose from installment
• EUL is related to:• Maintenance Requirements
• Original Construction Techniques
• Materials of Construction
• RUL: the number of remaining years that an asset will be able to function/perform its intended purpose
• RUL = EUL – age of the asset
Asset Risk Scoring and CIP DevelopmentEXAMPLE: FLA MXR2B MB – FLASH MIXER #2B SE CORNER
Physical Condition = 3.0
Performance Condition = 1.1
PoF Score = (3.0 x 0.7) + (1.1 x 0.3) = 2.43
CoF Score = 2.20
Risk Score = PoF x CoF = 2.43 x 2.20 = 5.35
• Install Year = 1993
• EUL = 20 yrs
• Modified EUL = 20 x 140% = 28 yrs
• Replacement Recommended
in FY 2021 = $58,000
Final Modified EUL Projections
0
50
100
150
200
250
300
350
400N
um
be
r o
f A
sse
ts
Year
Number of Assets Reaching EUL
Long-Term WTP CIP Projections
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
Co
st
Year
Annual R&R Cost Projection
Total = $334M
Financial Forecasting / Prioritization
• Long-term CIP projection
• Annual prioritization based on infrastructure risk
• Budget scenario flexibility
CIP Development
Risk Assessment
Project Scoping
and Bundling
Asset Prioritization through Risk Analysis
1
Project Prioritization
2
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
Co
st
Year
Annual R&R Cost Projection
Total = $334M
Risk Assessment Sustainability
• Classroom risk assessment training
• Field training with mobile devices
• Slight modification of definitions and assessment forms
Risk Assessment Data Integration
• Integrate risk assessment information into City’s Hansen CMMS
• O&M staff training
• Integrate SQL Server database once new CMMS/EAM is implemented
User revises asset condition using
ESRI tools
Condition Assessment dB
updated with latest CA data
ArcGIS online:stores every data record submitted
SQL server dB:Host historical condition
assessment data
CMMS:Asset inventory
Next Steps
Programmatic AM Approach
Primary Objective: Secondary Objectives:
New CMMS/EAM Implementation
Hardware/Software
Configuration
Data Migration
Strategy & TestingUser Testing Staff Training Module Integration
Process Flow
Development
Criteria
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Luci
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Uti
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Clo
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Ranking 8 13 6 4 9 1 5 2 3 11 10 12 7
F1: Work Order Management 4 3 3 4 3 5 4 4 4 3 3 4 4
F2: Asset Management 3 3 3 3 2 4 4 4 4 2 4 2 4
F3: GIS 4 3 4 4 4 5 3 5 4 4 4 4 2
F5: Inventory Management 4 2 5 5 4 5 4 5 5 0 4 5 1
F6: Financial Planning 0 0 3 3 4 3 3 3 3 5 3 0 3
T1: Company Services 4 2 5 5 4 5 5 5 5 4 3 3 4
T2: Interface 3 3 4 4 3 5 4 4 4 2 2 3 4
T3: Other 4 3 4 3 4 5 5 4 3 4 4 3 5
O&M Optimization
Adopt Key Reliability Centered
Maintenance Principles:
• PdM – Predictive
• PM – Preventive
• CM – Corrective
Benefits:
• Better estimate of EUL
• Avoid critical failures
• Optimize inventory and
resources
Performance Management and Business Analytics
• Service Level monitoring
• O&M Program effectiveness
• Capital Improvement Program execution
• Performance benchmarking
• Process status and improvement monitoring
Thank You!
Matt Manchisi, PE, PMPHazen and SawyerTel: (215) 592-4524Email: [email protected]