Challenges and Opportunities in Implementing an Asset Management Program
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The document discusses strategic directions, challenges and opportunities in implementing an asset management program for water utilities. It outlines that 70% of water utilities expect to have good asset management practices in place within 3 years. Common challenges include lack of sufficient asset data, inadequate resources, resistance to change, and organizational silos between different utility departments. Opportunities include identifying cost savings through risk-based capital planning, aligning asset management with existing programs for quick wins, building on existing strong practices, and using an asset management framework to assess and measure progress over time.
Challenges and Opportunities in Implementing an Asset Management Program
- 4. STRATEGIC DIRECTIONS IN THE US WATER INDUSTRY • Broad Survey of Water Utilities • 70% expect “good practice” asset management in 3 years • Benefits of asset management focused on CIP planning, replacement STRATEGIC DIRECTIONS IN THE US WATER INDUSTRY 4 Black & Veatch 1 April 2015
- 9. COMMON CHALLENGES 1. Data Sufficiency 2. Inadequate Resources 3. Resistance to Change 4. Operational Silos 9
- 13. CHALLENGE #1: DATA SUFFICIENCY ASSET MANAGEMENT IS NOT SOFTWARE Oracle eAM / Spatial gbaMS 13 Black & Veatch 29 June 2015
- 17. CHALLENGE #2: INADEQUATE RESOURCES • Gap Assessment Identified Priorities • Asset renewal forecast • Engineering processes • CMMS procurement • Continual Data Improvement • Manhole data application • Collect data as part of routine work FORSYTH COUNTY, GA STEPWISE APPROACH 29 June 2015Black & Veatch 17
- 19. CHALLENGE #3: RESISTANCE TO CHANGE • Nobody wants to do pointless work • Understanding why something is important • Showing benefit of activity • Establish data standards • Map system defects • Makes future work easier WINSTON‐SALEM: OVERCOMING RESISTANCE 29 June 2015 19 Black & Veatch
- 20. CHALLENGE #3: RESISTANCE TO CHANGE SUSTAINABLE CHANGE IS A JOURNEY 20 Reliability and Performance Maintenance and spare spend ($) Asset Management Maturity Innocence Awareness Understanding Competence Excellence Maintenance is an expense Timeline (1‐5 years) Maintenance is an investment Repairs as good as before Reactive – Fix it when it breaks Struggling with management systems Proactive, preventative maintenance Systems are a valuable tool – information as an asset Repairs are as good as new Proactive predictive maintenance Maintenance is part of the supply chain Focus on lifecycle and reliability Optimized decision making A “pendulum swing” in attitude shifting from cost focus to value focus Costs go down While value and performance increases Black & Veatch 29 June 2015
- 22. Other City Departments Information Technology Human Resources Finance Water and Sewer Department Engineering Services Tulsa Asset Management Improvements Implementation BUILD EFFECTIVE PARTNERSHIP 22 Black & Veatch 29 June 2015 Capital Projects Operations, Maintenance, & Rehab Independent System Stewards CHALLENGE #4: ORGANIZATIONAL SILOS
- 23. Asset Management Committee AM Framework, CIP, RCM Addition of Asset Manager, IT System Manager, and Asset Management Committee aligned the functional roles and Asset Management Framework IT Systems Work Group Raw Water Supply Water Treatment Water Distribution Sewer O&M Water Pollution Control Engineering Planning (CIP) Engineering Construction Other City Departments Information Technology Human Resources Finance Water and Sewer Department Engineering Services Tulsa Asset Management Improvements Implementation BUILD EFFECTIVE PARTNERSHIP 23 Black & Veatch 29 June 2015CHALLENGE #4: ORGANIZATIONAL SILOS
- 24. COMMON OPPORTUNITIES 1. Maximize existing programs 2. Build on strong practices 3. Assess and prioritize your program 4. Track progress 24
- 34. OPPORTUNITY #3: BUILD ON STRENGTHS • AM Planning as part of FP • Hierarchical structure of service levels and risk indicators • Advanced CMOM program • Available history of performance indicators MILWAUKEE METROPOLITAN SEWER DISTRICT 2050 FACILITIES PLAN 29 June 2015 34 Black & Veatch Triple Bottom Line Organizational Objectives Levels of Service Performance Indicators Targets
- 35. COMMON OPPORTUNITIES OPPORTUNITY #4: A FRAMEWORK PROVIDES A ROADMAP 29 June 2015Black & Veatch 35
- 36. TULSA ASSET MANAGEMENT IMPLEMENTATION Assess your Program and Measure Progress OPPORTUNITY #4: A FRAMEWORK PROVIDES A CONSISTENT MEANS TO ASSESS AND MEASURE YOUR PROGRAM 29 June 2015Black & Veatch 36 0.0 1.0 2.0 3.0 4.0 4.1 4.2 4.3.1 4.3.2 4.3.3 4.3.4 4.4.1 4.4.2 4.4.3 4.4.4 4.4.5 4.4.6 4.4.7.1 4.4.7.2 4.4.7.3 4.4.7.4 4.4.8 4.4.9 4.5.1 4.5.2 4.6.1 4.6.2 4.6.3 4.6.4 4.6.5.1 4.6.5.2 4.6.6 4.7 PAS 55 Implementation Targets Target Baseline Year 1 Year 2 Year 3 Contingency Planning General Requirements Management Review Structure AM Strategy AM Policy AM Objectives AM Plans Outsourcing Communication AM System Documentation Information Management Risk Management Lifecycle Activities Tools, Facilities & Equipment Performance and Condition Monitoring Investigation of Failures and Incidents Evaluation of Compliance Corrective and Preventative Action Records Training Audit Continual Improvement Legal Requirements Change Management
- 37. TULSA ASSET MANAGEMENT IMPLEMENTATION ROADMAP COORDINATES AM AND RCM IMPROVEMENT ACTIVITIES 37 No. Initiative Name: S1 Develop and Implement Asset Management Policy S8 Establish Appropriate Staff Performance Metrics and KPIs S2 Assess Asset Criticality S4 Asset Management Organizational Model Implementation S5 Develop and Implement Asset Management Framework S3 Develop and Implement Asset Management Strategy P1 Implement a Risk Management Process Final Rank Dependencies 1 Foundational for all initiatives 1 Needs to link to AM Objectives (S3) Strategy 3 Foundational for (P1) risk 3 Foundational for all initiatives 3 Brings together outputs from other initiatives into AM Manual 6 Foundational for (S6) plans and (S5) framework 6 Requires criticality (S2) and basic asset condition (P6, T2) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2013 2014 2015 2013 2014 2015 P9 Develop and Implement AM Continuous Improvement Processes and Management Reviews P10 Review and Update Records Management Annual Costs Development Costs 17 Feeds back to AM Framework (S5) 17 Largely independent of other initiatives. Output feeds to AM framework (S5) 1 1 1 $ 75 $ 338 $ 1,288 $ 763 $ 1,663 $ 1,125 Black & Veatch 29 June 2015
- 38. TULSA ASSET MANAGEMENT IMPLEMENTATION Policy includes: • Mission • AM Principles • Commitment to regulations and levels of service • Commitment to continual improvement Policy is approved by the TMUA Board ASSET MANAGEMENT POLICY 38 Black & Veatch 29 June 2015
- 40. TULSA ASSET MANAGEMENT IMPLEMENTATION 40 Strategy Objective Description Objective Target Effective Utility Attribute Develop and implement asset management plans that consider whole life cycle costs, asset performance, risk and consequence of failure, service levels and future demands and regulations that provide sustainable investments in the water and sewer system. Consider the whole asset life cycle and use life cycle cost analysis in decision making Develop an asset management planning guidance document that will identify the content of the plans, provide a template for the document and examples of what should be included. Develop asset management plans considering the whole life cycle. Plans will use the 2011 Comprehensive plan as a starting point and will be updated and expanded to address maintenance and rehabilitation. Asset management plans will be developed in three phases over an 18 month period. Priorities for developing plans will be determined, and groups of plans will be identified for development in each phase. Use whole life costs to assess different solution options for capital projects, including both capital and operating costs and benefits over the life of the asset. Implement whole life cost analysis for making operational and maintenance decisions, including the selection of equipment and materials. Ensure decision making processes consider the impacts of decisions on all stages of the asset life cycle. The new CMMS will expand the availability of data for this purpose. December 2014 December 2015 December 2015 Target dates included in the Lucity Implementation schedule Infrastructure Stability Financial Viability Operational Optimization Black & Veatch 1 April 2015 ASSET MANAGEMENT STRATEGY & OBJECTIVES
- 41. TULSA ASSET MANAGEMENT IMPLEMENTATION • Existing computerized maintenance management systems (CMMS) not fit for purpose • Collaboration with staff to develop scope and assess proposals • Lucity software selected • Finalize work processes, registry, and hierarchy prior to implementation ASSET MANAGEMENT INFORMATION SYSTEMS IMPLEMENTATION 41 Black & Veatch 1 April 2015
- 42. CONCLUSIONS • Asset Management is evolving. Don’t get hung up on perfection. • Build on your strengths. • Implement the program in steps. • Make a plan and track progress. 42
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