national and international perspective on asset...

National and International Perspective on

Asset Management

May 10, 2006

Kirk T. Steudle, P.E., DirectorMichigan Department of Transportation

AASHTO Subcommittee on Asset Management

Mission: Advance the StateMission: Advance the State--ofof--thethe--Practice of Practice of Asset Management in State DOTAsset Management in State DOT’’s to optimize s to optimize resources utilizing performance based goals and resources utilizing performance based goals and measures regarding operation, preservation, measures regarding operation, preservation, and improvement of transportation systems for and improvement of transportation systems for member agencies. member agencies.

AASHTO Subcommittee on Asset Management

Focus on implementationFocus on implementation

Develop, improve, promote, and Develop, improve, promote, and support the use of management support the use of management systems, economic evaluation systems, economic evaluation tools, and tradeoff analysis tools, and tradeoff analysis methodsmethods

Share information application of Share information application of performance measurement and performance measurement and decision making tools decision making tools

Education and trainingEducation and training

MeetingsMay 2004 May 2004 -- Charleston, NCCharleston, NCSept 2004 Sept 2004 -- Peer to Peer, Washington, DCPeer to Peer, Washington, DCSept 2004 Sept 2004 -- Philadelphia, PAPhiladelphia, PAJan 2005 Jan 2005 -- Washington, DCWashington, DC

With TRB subcommitteeWith TRB subcommittee

April 2005 April 2005 -- International ScanInternational ScanJuly 2005 July 2005 –– Boston, MABoston, MA


Sept 2005 Sept 2005 -- Nashville, TNNashville, TNJan 2006 Jan 2006 –– Washington, DCWashington, DC


July 2006 July 2006 -- Traverse City, MITraverse City, MIAug/Sept 2006 Domestic ScanAug/Sept 2006 Domestic Scan

Strategic Plan InitiativesStrategic Plan InitiativesDevelop and Promote Tools (Goal 1)Develop and Promote Tools (Goal 1)

Project task forceProject task force•• Wisconsin, Montana, New York, Wisconsin, Montana, New York,

Pennsylvania, Michigan, Pennsylvania, Michigan, District of ColumbiaDistrict of Columbia

StatusStatusSolicitation for Community of Early Solicitation for Community of Early AdaptersAdapters

•• Nine participating states: Michigan, New Nine participating states: Michigan, New York, Kansas, Wisconsin, Pennsylvania, York, Kansas, Wisconsin, Pennsylvania, Oregon, South Carolina, South Dakota and Oregon, South Carolina, South Dakota and District of ColumbiaDistrict of Columbia

•• Need ten states to move forwardNeed ten states to move forward

Asset Manager NT/ PT AASHTOWare product Asset Manager NT/ PT AASHTOWare product (NCHRP 20(NCHRP 20--57) 57)

Strategic Plan InitiativesStrategic Plan InitiativesCommunication (Goal 2)Communication (Goal 2)

Website updatedWebsite updated

State contact listState contact list

Draft standard Draft standard presentations & presentations & speeches speeches

Strategic Plan InitiativesStrategic Plan InitiativesAssisting in Assessing and Implementing Principles Assisting in Assessing and Implementing Principles

(Goal 3)(Goal 3)Maintaining the AASHTO AM GuideComprehensive training opportunity listCapacity building program

Peer to Peer Joint meetings with TRB6th National Conference on Asset Management – Nov 1-3 Kansas City, MO

Combined with Pavement Preservation Workshop Oct 31 - Nov 1

Updated NHI Asset Management Course

Upcoming synthesis on bridge dataUpcoming synthesis on bridge dataAsset management approach for drainage Asset management approach for drainage infrastructure and culvertsinfrastructure and culvertsWorkshop on tunnel management systemsWorkshop on tunnel management systemsScan toursScan tours

International International –– Spring 2005Spring 2005Domestic Domestic –– Fall 2006Fall 2006•• Michigan, Florida, Ohio, Oregon, Utah, Michigan, Florida, Ohio, Oregon, Utah,

Washington, and Minnesota Washington, and Minnesota

Strategic Plan InitiativesStrategic Plan InitiativesDevelop and Document Understanding of AM Develop and Document Understanding of AM

(Goal 4)(Goal 4)

Edmonton, Alberta

London, England

Melbourne, Victoria Sydney, New South Wales

Brisbane, Queensland

Wellington, New Zealand

International Scanning Review

Purpose

Investigate best case examples of asset management techniques and processes in the world…and identify lessons and applications for the U.S.

Sponsored by AASHTO, FHWA, and NCHRP

Drivers for Adopting Asset Management Approaches

Limited resourcesLimited resources

Increasing demands Increasing demands

Credibility with elected officials and the Credibility with elected officials and the public, that is, linking funding to system public, that is, linking funding to system performanceperformance

Strategic oversight where private provision Strategic oversight where private provision of services was usedof services was used

What we found…Long term commitment to developing an Long term commitment to developing an asset management programasset management programOrganization structuresOrganization structuresIntegrated policyIntegrated policyPerformance measuresPerformance measuresAM plan sample componentsAM plan sample componentsManagement systems and data collectionManagement systems and data collectionPrioritization and scenario analysisPrioritization and scenario analysisLife cycle costing and risk assessmentsLife cycle costing and risk assessmentsPublic involvementPublic involvement

Queensland’s Business Decision-Making Needs - Corporate Level

Road condition performance reporting

Network asset investment studies

Corridor planning

Asset valuation

Consumption of economic benefit curveBased on ESA's growing at 5% per annum and terminal value of 21% .

0%10%

20%30%40%50%

60%70%80%

90%100%

0 5 10 15 20 25 30 35 40

Years

Writ

ten-

dow

n va

lue

(%)

Terminal Value 21%

RUL = 16.5 years

Depreciable Component = 79%

Chart 1.1

Performance Measures in Alberta

Three key measuresThree key measuresConditionConditionUtilizationUtilizationFunctionalityFunctionality

Common framework across Common framework across infrastructure typesinfrastructure typesMinistries develop specific measures Ministries develop specific measures

Pavement Roughness was a Key Performance Measure Almost Everywhere

TRENDS IN ROUGHNESS FOR ALL ARTERIAL ROADS

10

11

12

13

14

15

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Year

Rou

ghne

ss (%

>11

0nrm

)

Pavement inventory and condition reportPavement inventory and condition report in Victoriain Victoria

Highways Agency Pavement Management System Overview

Accidents

SafetyVideo

LAN AccessScheduled Road Works

Information Services

Network Data Repository

Confirm

Public Website

Traffic England Website

Budget Need

Network WLC Model

Road Condition Information

TRACS

Deflectograph

SCRIM

Visual Survey

SWEEP

Scheme WLC analysis

NetworkDefinition

Inventory

Construction

AssetInformation

Commercial Traffic

Documents

Accidents

Safety

Accidents

SafetyVideo

LAN Access

Video

LAN AccessScheduled Road Works


Scheduled Road Works



Confirm


Confirm


Confirm

Public Website

Traffic England Website

Budget Need

Network WLC Model


TRACS

Deflectograph

SCRIM

Visual Survey


TRACS

Deflectograph

SCRIM

Visual Survey

SWEEP

Scheme WLC analysis

NetworkDefinition

Inventory

Construction

AssetInformation

Commercial Traffic

Documents

SCRIM+Network Pavement Condition Measuring Vehicle

These information systems produce a wide range of useful information

Some no more than basic inventory data, while others can produce

performance and condition reports….for example

Use of Asset Data in New South Wales

Approaches to Technical Approaches to Technical AnalysisAnalysis

In only a few cases was any effort made to conduct analysis-driven trade-off assessments; those that did were heavily based on engineering judgement.

However, it was clear that all of the agencies were working toward such a capability..

Project Prioritization - Alberta

Provincial Highways

Health Facilities/Equip.

School Facilities/Equip.

Post-Secondary Facilities

Water and Wastewater

Community Facilities

Housing

Other Infrastructure

Program Delivery

Infrastructure Performance

Economic Benefits

Cost Avoidance/Saving

Cost-Effectiveness

Strategic Alignment

Prioritized ProjectList

Infrastructure Requirements

Prioritization Criteria

Cross-Government

Priorities

Life cycle costing (also known as Life cycle costing (also known as ““wholewhole--ofof--lifelife”” costing) has been adopted in costing) has been adopted in each site as the basic approach toward each site as the basic approach toward program and project costing. program and project costing. Importantly, data identification and Importantly, data identification and collection were targeted to support this collection were targeted to support this approach.approach.

Life Cycle CostingLife Cycle Costing

Efforts have been made in each case to reach out to public officials, stakeholders and, in some cases, to the general public, in conveying the importance of an asset management policy.

Public InvolvementPublic Involvement

Lessons for the U.S.Asset Management Asset Management programs have been programs have been used successfully to used successfully to justify transportation justify transportation fundingfunding (even in tight (even in tight economic times) and to economic times) and to convey to decision convey to decision makers that the makers that the investment is being investment is being delivered in the most delivered in the most cost effective manner cost effective manner possiblepossible

Adopting an asset management approach in an organization does not mean that everything has to change.

Asset management efforts are data-driven. However, developing an asset management culture in an organization does not have to await the many years it might take to develop database information systems.

Lessons

Data should have a clear purpose and be directly related to asset management decision making. Data collection costsshould be tracked and data itself treated as an asset, with the same design, build, operate, maintain and life cycle cost analysis as is used for other assets.

Lessons

Creating asset manager positions or at least assigning responsibilities for the asset management function are important foundations for an effective management program

Asset management efforts are best achieved when they are linked to strategic goals and desired outcomes.

Lessons

Trade-off analysis techniques are more complex than simply assessing priorities within one asset category. The scan team did not find any case where technically-based cross asset trade-off tools were used. This is an important area for further development in the U.S.

Lessons

Cross-functional teams, consisting of engineers, planners, finance analysts, operations staff, and communications experts can best understand the many different aspects of asset management, such as data collection, developing strategies, and quality assurance.

Lessons

Asset management training for all levels of transportation officials is an important initiative for changing the culture of an organization and in establishing asset management expectations among key stakeholders.

Lessons

ImplementationImplementation——Long TermLong Term

Task 1: Initiate a study Task 1: Initiate a study ““Develop a national Develop a national TAM model for the Interstate SystemTAM model for the Interstate System”” to to determine the benefits ofdetermine the benefits of using asset using asset management plans for all segments of management plans for all segments of the Interstate Highway System the Interstate Highway System

Key factors should include a risk analysis for system Key factors should include a risk analysis for system failure and a look at the physical degradation and its failure and a look at the physical degradation and its impact on the remaining service life, and overall impact on the remaining service life, and overall decreased operation of the system without a decreased operation of the system without a comprehensive national vision and plan. The study comprehensive national vision and plan. The study should also list potential national performance indicators should also list potential national performance indicators (18 months).(18 months).

Approved $500,000 Approved $500,000 -- NCHRPNCHRP

In sum….

It is clear that asset management as an organizational culture, a “business decision-making process” and as a policy direction is a critical foundation for transportation programs that are facing significant capital renewal and preservation needs. The U.S. is clearly facing such a challenge.

Questions?