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Dennis J. Gallagher
Auditor
Office of the Auditor
Audit Services Division
City and County of Denver
Denver International Airport Facility Management
Performance Audit
February 2012
The Auditor of the City and County of Denver is independently elected by the citizens of Denver. He is
responsible for examining and evaluating the operations of City agencies for the purpose of ensuring the
proper and efficient use of City resources and providing other audit services and information to City
Council, the Mayor and the public to improve all aspects of Denver’s government. He also chairs the
City’s Audit Committee.
The Audit Committee is chaired by the Auditor and consists of seven members. The Audit Committee
assists the Auditor in his oversight responsibilities of the integrity of the City’s finances and operations,
including the integrity of the City’s financial statements. The Audit Committee is structured in a manner
that ensures the independent oversight of City operations, thereby enhancing citizen confidence and
avoiding any appearance of a conflict of interest.
Audit Committee
Dennis Gallagher, Chair Robert Bishop
Maurice Goodgaine Jeffrey Hart
Leslie Mitchell Timothy O’Brien, Vice Chair
Rudolfo Payan
Audit Staff
John Carlson, Deputy Director, JD, MBA, CIA
Dawn Hume, Internal Audit Supervisor
Marcus Garrett, Lead Internal Auditor, CIA, CGAP
Emily Sheets, Lead Internal Auditor, MS
Travis Henline, Senior Auditor
You can obtain copies of this report by contacting us at:
Office of the Auditor
201 West Colfax Avenue, Department 705 Denver CO, 80202
(720) 913-5000 Fax (720) 913-5026
Or download and view an electronic copy by visiting our website at:
www.denvergov.org/auditor
To promote open, accountable, efficient and effective government by performing impartial reviews and other audit
services that provide objective and useful information to improve decision making by management and the people.
We will monitor and report on recommendations and progress towards their implementation.
City and County of Denver 201 West Colfax Avenue, Department 705 Denver, Colorado 80202 720-913-5000
FAX 720-913-5247 www.denvergov.org/auditor
Dennis J. Gallagher
Auditor
February 16, 2012
Ms. Kim Day, Manager
Department of Aviation
City and County of Denver
Dear Ms. Day:
I would like to acknowledge the strong partnership between my office and the Denver
International Airport (DIA). Over the last few years, working in collaboration with my audit staff,
DIA has engaged in meaningful assessment of potential risks to airport operations and the City.
DIA leadership has repeatedly shown that they understand the value of a strong audit function
and the benefits that concrete audit recommendations can provide. This audit is the most
recent example of this mindset.
The purpose of this performance audit was to assess current and proposed facility management
plans utilized by the DIA Maintenance Division (Division). A well-maintained airport will facilitate
economic growth not only for the City but also for the state and surrounding region.
While we praise DIA’s proactive approach and its desire to implement a comprehensive facility
management plan, we must note that significant work is required to make this a reality. Our work
indicated that key elements are missing in the current facility management program.
Specifically, the Division does not have an adequate asset management strategy and does not
consistently track all assets. The Division can improve its workforce succession planning by
utilizing best practice strategies identified in the report. Finally, the maintenance approach
should be augmented to address impediments that prevent the Division from transitioning to a
more cost-effective maintenance program. The success of DIA is largely dependent on
passenger satisfaction, which is directly linked to how well facilities are maintained and
managed.
As a result of the issues identified in our audit, we offer several thoughtful recommendations to
assist DIA when planning necessary maintenance activity.
If you have any questions, please contact Kip Memmott, Director of Audit Services, at 720-913-
5000.
Sincerely,
Dennis J. Gallagher
Auditor
DG/th
cc: Honorable Michael Hancock, Mayor
Honorable Members of City Council
Members of Audit Committee
To promote open, accountable, efficient and effective government by performing impartial reviews and other audit
services that provide objective and useful information to improve decision making by management and the people.
We will monitor and report on recommendations and progress towards their implementation.
Ms. Janice Sinden, Chief of Staff
Ms. Stephanie O’Malley, Deputy Chief of Staff
Ms. Cary Kennedy, Chief Financial Officer
Mr. Doug Friednash, City Attorney
Mr. L. Michael Henry, Staff Director, Board of Ethics
Ms. Janna Bergquist, City Council Executive Staff Director
Ms. Beth Machann, Controller
Mr. Ken Greene, Deputy Manager of Operations, Public Safety, and Security
Mr. Ron Morin, Interim-Deputy Manager of Aviation, Field Maintenance Director
Mr. Patrick Kelly, Interim-Deputy Manager of Aviation, Technical Maintenance Director
To promote open, accountable, efficient and effective government by performing impartial reviews and other audit
services that provide objective and useful information to improve decision making by management and the people.
We will monitor and report on recommendations and progress towards their implementation.
City and County of Denver 201 West Colfax Avenue, Department 705 Denver, Colorado 80202 720-913-5000
FAX 720-913-5247 www.denvergov.org/auditor
Dennis J. Gallagher
Auditor
AUDITOR’S REPORT
We have completed a performance audit of the Department of Aviation’s Facility Management
program. The purpose of this performance audit was to assess facility management plans utilized
by Denver International Airport’s (DIA) Maintenance Division (Division), to ensure an effective
maintenance approach is utilized by the Division, and to identify possible inefficiencies and
opportunities for improvement.
This performance audit is authorized pursuant to the City and County of Denver Charter, Article
V, Part 2, Section 1, General Powers and Duties of Auditor, and was conducted in accordance
with generally accepted government auditing standards. Those standards require that we plan
and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis
for our findings and conclusions based on our audit objectives. We believe that the evidence
obtained provides a reasonable basis for our findings and conclusions based on our audit
objectives.
The audit revealed that the Division has not taken the necessary steps to implement a robust
asset management plan. Our work identified multiple opportunities for improvement including
developing a comprehensive facility management planning strategy, consistently and
accurately tracking assets, preparing an effective succession strategy to address a retirement-
eligible workforce, and transitioning to a maintenance approach suitable for a facility the age
of DIA. By addressing these areas moving forward, DIA should be well situated for future success.
We extend our appreciation to the Department of Aviation staff that assisted us during the audit.
Audit Services Division
Kip Memmott, MA, CGAP, CICA
Director of Audit Services
TABLE OF CONTENTS
EXECUTIVE SUMMARY 1
To Fully Execute its Facility Management Program, DIA Needs to Develop
a Comprehensive Asset Management Plan 1
INTRODUCTION & BACKGROUND 5
SCOPE 9
OBJECTIVE 9
METHODOLOGY 9
FINDING 11
To Fully Execute its Facility Management Program, DIA Needs to Develop
a Comprehensive Asset Management Plan 11
RECOMMENDATIONS 24
APPENDICES 25
Appendix A – DIA Maintenance Division Organizational Chart 25
AGENCY RESPONSE 26
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EXECUTIVE SUMMARY
Denver International Airport (DIA) opened 17 years ago in 1995. The facility spans nearly
34,000 acres and includes one main terminal, three separate concourses, and six
runways. DIA’s Maintenance Division (Division) is tasked
with maintaining the DIA facility, including both indoor
and outdoor areas.
The success of the airport largely depends on how well
the facilities are maintained and managed by the
Division. Top-ranked airports in the world, based on
passenger satisfaction, prioritize maintenance
fundamentals such as clean surroundings, comfortable waiting areas, and ease of
movement through the airport.1 In addition, satisfied passengers are likely to spend more
money at airport retail establishments, which generates sales tax revenue for the City.
To Fully Execute its Facility Management Program, DIA Needs to Develop a Comprehensive Asset Management Plan
The current facility management program at DIA does not have fundamental elements
in place. Specifically, the Division does not have an adequate asset management
strategy, is not fully maximizing its asset management software, and must sufficiently plan
for succession within its workforce. These issues all hinder the Division from utilizing cutting-
edge and cost-effective maintenance strategies.
Facility Management Strategy is Inadequate to Effectively Plan for
Maintenance Needs
There are three issues noted with respect to the Division’s forecasting and budgeting
process that demonstrate the ineffectiveness of the current planning strategy.
Ability to Address Sudden Equipment Failures can be Enhanced – DIA’s central
plant—the heating and cooling system—has recently experienced failures, which
the Division was unprepared to address. More specifically, a chiller in the central
plant failed in July 2011 and remained inoperable as of January 2012.2 Prior to the
failure of this chiller, it had exceeded its useful life, but the Division had not
planned for replacement.
Inadequate Planning for Unexpected Costs – The Division does not plan for
unexpected maintenance costs. Based on a review of the Division’s budget and
1 “Incheon International Airport named Best Airport Worldwide,” Airports Council International, accessed September 22, 2011,
http://www.airports.org. J.D. Power and Associates, “Although Technology May Help Improve the Airport Experience, the Basics Have the Greatest Impact on Passenger Satisfaction” (2010): accessed September 22, 2011, http://businesscenter.jdpower.com/news/pressrelease.aspx?ID=2010015. 2 A chiller is a major component of the refrigeration system that provides water-cooled air throughout the airport.
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The Division should fully
utilize its existing
technology prior to
investing in a new system.
interviews with key personnel, contingency funds are not maintained for high-
dollar assets, such as the tent roof or the chillers.
Unknown Condition of Assets – The Division does not know the condition of all
assets when budgeting for maintenance costs. Asset condition should play a
major role in determining the priority of maintenance needs and amount of
resources needed for maintenance. The Federal Real Property Council supports
asset-condition assessment as a best practice.3
Further hindering the planning and budgeting process, the Division does not track many
key performance measures that assist management in measuring the effectiveness of
their maintenance strategies. This includes one key measure used by the Airport
Cooperative Research Program, the International Facility Management Association
(IFMA), and other airports: maintenance cost per square foot. Tracking and monitoring
key measures provides a methodology for Division management to tie decisions to
concrete data, and allows the Division to better justify expenditures and prioritize
maintenance needs.
Asset Management Program Best Practices – An important component of facility
management is an effective asset management program, which emphasizes managing
an asset throughout its full life-cycle—planning, acquisition, maintenance, renovation,
and disposal. Federal Executive Order 13327 instructs federal agencies to implement a
comprehensive asset management program for all real property.4 In addition, three of
five respondent airports to our benchmarking survey reported using a comprehensive
asset management program. Division management recognizes asset management
programs as a best practice; however, such a program has not been implemented. The
Division has launched an asset management pilot program by utilizing a consultant to
conduct a baseline condition assessment of the passenger loading bridges.
The Division is not Fully Maximizing Asset Management Software
The Division has not input all capital assets into its asset management software program,
Maximo, and primarily utilizes Maximo to generate preventative maintenance and
service call work orders, which does not maximize the
software’s asset management capabilities. Further,
while Maximo has the ability to track a multitude of
data elements identified as best practice, the Division
does not consistently enter this information.
Underutilization of Maximo has several negative
effects including the inability to identify the types and
the number of assets the Division possesses, to
determine the value of an asset, and to rely on data and internal reports used for
decision making. The Division has expressed interest in using Building Information
3 Executive Order 13327, Federal Real Property Asset Management, 69 Fed. Reg. 5897 (Feb. 4, 2004) established the Federal
Real Property Council. The Council is responsible for creating asset requirements for federal agencies. For more information refer to http://edocket.access.gpo.gov/2004/pdf/04-2773.pdf. 4 Ibid.
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Modeling technology, which can enhance facility management practices; however, the
Division should fully utilize its existing technology prior to investing in a new system.
Workforce Succession Plan Must Include Additional Key Elements
Due to a large number of retirement-eligible employees and a lengthy, difficult hiring
process, the Division faces significant challenges developing workforce planning
strategies. Division management, in conjunction with the Career Service Authority (CSA),
conducted an analysis and determined that twenty-five percent of Division personnel will
be eligible to retire in three to five years. In addition, CSA 2011 recruitment data shows
that it took the Division an average of 103 days to fill an open position.5 The technical
nature of many of the Division’s positions makes it challenging to find qualified
candidates, further prolonging the hiring process. Although the Division has created a
succession plan, it has not fully incorporated all available workforce planning strategies
as identified by federal and industry best practice, including implementing internal cross-
training activities.
A Lack of Information in Maximo is Preventing DIA from Transitioning to a
More Cost-Effective Maintenance Program
The Division relies heavily upon a reactive maintenance approach—which focuses on
responding and fixing problems and asset failures as they occur—rather than preventing
and predicting problems. A reactive maintenance approach is more costly and less
effective for facility maintenance. IFMA suggests that relying on a reactive strategy is
more appropriate for new facilities, since the risk of equipment failure is low. Now that
DIA is 17 years old, the Division’s maintenance strategy should be adjusted to a more
comprehensive approach.
Transitioning to a predictive maintenance approach, one that determines maintenance
tasks based on asset condition, has many benefits. A functional predictive maintenance
program increases a facility’s return on investment and provides, on average, the
following savings.6
25 to 30 percent reduction in maintenance costs
70 to 75 percent reduction in breakdowns
35 to 45 percent reduction in downtime
Research indicates the most cost-effective maintenance program is a reliability-
centered maintenance program (RCM), which has many of the same benefits as a pure
predictive maintenance approach. Typically, RCM uses a mixture of all three types of
approaches—reactive, preventative, and predictive—and takes into account that not
5 A copy of the Career Service Authority Recruiting Report, was provided to the Audit Team on November 7, 2011. The report
measured the time between the certification date to the effective date that a promotion or new hire was confirmed. In 2011, section manager final approval to posting (forty-four days) plus average of select DIA Maintenance Division sections recruiting period (fifty-nine days) totaled 103 days. 6 U.S. Department of Energy, Operations & Maintenance Best Practices: A Guide to Achieving Operational Efficiency, (August
2010): accessed December 14, 2011, http://www1.eere.energy.gov/femp/pdfs/omguide_complete.pdf.
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all assets are equally important to the overall mission, prioritizing maintenance tasks
accordingly.
The Division has expressed interest in moving towards a more cost-effective approach,
but lacks the basic information necessary to do so. This information includes having a
master list of all assets maintained by the Division, assigning a priority to each asset, and
knowing the condition of each asset.
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INTRODUCTION & BACKGROUND
History of Denver International Airport
The City and County of Denver owns the Municipal Airport System, which includes
Denver International Airport (DIA) and the former Stapleton International Airport
(Stapleton).7 Construction on Stapleton began in 1928. Although Stapleton expanded
multiple times, air traffic reached full capacity in the late 1980s. In 1994, the Department
of Aviation became an independent City department tasked with operating the
Municipal Airport System, and the Manager of Aviation began reporting directly to the
Mayor. Once DIA officially opened in 1995, Stapleton was decommissioned and
redeveloped into a multi-use area.8 DIA was built on nearly 34,000 acres of land and
includes one main terminal, three separate concourses,
and six runways. The four busiest airports in the United
States—Hartsfield-Jackson Atlanta, Chicago O'Hare, Los
Angeles International, and Dallas/Fort Worth International
Airport—could fit inside the 53-square-mile DIA parcel.9
When Stapleton was decommissioned, a number of assets
were transferred from Stapleton, including some
passenger loading bridges and components of the
heating and cooling system. Accordingly, DIA’s Maintenance Division (Division) found
itself maintaining both old and new airport assets. One of the more well-known and
visible features of the airport is the Jeppesen Terminal tent roof. The unique covering
consists of 15 acres of credit-card thin Teflon-coated fiberglass material draped over 34
masts. The tent roof uses a cable system similar to that of the Brooklyn Bridge and is 126
feet from the terminal floor to its highest point.
DIA Maintenance Division
The Division has an annual operating and maintenance budget—excluding capital
improvements—of approximately $125 million.10 The Division employs over 500 full-time
employees and is responsible for managing $38 million in contract services. Appendix A
contains the Division’s organizational chart. The Division’s work is critical to the success of
the airport because of the wide range of stakeholders who are affected by
7 Department of Aviation Revenue Contract Management, City and County of Denver Auditor’s Office, March 2011,
http://www.denvergov.org/auditor/AuditServices/AuditsCurrentYear/tabid/435802/Default.aspx. 8 Denver International Airport Finance and Administration Division, City and County of Denver Auditor’s Office, September 2011,
http://www.denvergov.org/auditor/AuditServices/AuditsCurrentYear/tabid/435802/Default.aspx. 9 Do You Know DIA? Denver International Airport, http://www.flydenver.com/doyouknowdia.
10 Operating and maintenance funds are used to maintain existing assets. Capital improvement projects (CIPs) provide a
significant addition, upgrade, or extend the useful life of an asset. CIPs are funded separately. Specific funding sources and allocations are determined through collaborative discussions between the Maintenance Division, the Planning and Development Division, and Financial Planning and Analysis.
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maintenance practices: air carriers, airline employees, retail establishments, and
travelers. The Division’s objective is to maintain ―all city owned facilities, airport operating
areas, and equipment‖ at DIA in the most effective and efficient manner.11 The Division
also ensures that all airport facilities remain compliant with Federal Aviation
Administration certification.
The Division comprises six sections, each of which plays a
role in helping DIA meet its objectives. One activity the
Division performs is snow removal, which significantly
impacts operations. The responsibilities of the individual
sections are described in greater detail below.
Facilities Maintenance – The Facilities Maintenance section maintains and repairs
all DIA facilities, which include several million square feet of roofs, walls, ceilings,
floors, and doors. The Facilities Maintenance workforce comprises multiple
professional trades such as carpenters, plumbers, and painters, as well as heating,
ventilating, and air conditioning personnel.
Field Maintenance – In accordance with rules and regulations promulgated by
the Federal Aviation Administration (FAA), the state, and the City, Field
Maintenance maintains the 53-square-mile airport site which includes the airport
operating area and the functional areas surrounding DIA, such as Peña
Boulevard. Field Maintenance completes all repairs and resurfacing of the
runways and taxiways in accordance with FAA guidelines. Further responsibilities
include airfield painting and landscaping.
Fleet Maintenance – This section services and maintains all airport-owned vehicles
and certain equipment. The goal of Fleet Maintenance is to provide internal
customers with safe and reliable equipment repaired in a timely and cost-
effective manner. Services performed include oil changes, alignment, and
diagnostics. Fleet Maintenance oversees one of the largest alternative-fuel and
snow-removal-equipment fleets in the United States.
Life Safety – The Life Safety section maintains the operation of all fire alarm and
fire suppression systems at DIA. This responsibility includes the inspection and
maintenance of all emergency power equipment including generators,
uninterruptable power supply units, and lighting inverters. Life Safety also inspects
and services approximately 1,600 fire extinguishers.
Maintenance Services – The Maintenance Services section provides support for
the entire Division, including fielding internal maintenance requests. In addition,
Maintenance Services is responsible for the Maintenance Control Center,
contract administration, the asset management system, and overseeing contract
snow removal.
Technical Maintenance – This section maintains and supports multiple electrical
and electronic systems such as facility and runway lighting, passenger loading
11 Denver International Airport Maintenance Division intranet, accessed July 7, 2011.
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Success of the airport is
dependent on how well
the facilities are
maintained and
managed by the
Division.
bridges, closed circuit security cameras, and emergency power systems.12 The
graphics shop, which fabricates and installs most of the signage throughout the
airport, is also housed within the Technical Maintenance section.13
The Concept of Facility Management
The International Facility Management Association (IFMA) studies all aspects of facility
management and considers the topic the ―integration of processes within an
organization to maintain and develop the agreed services which support and improve
the effectiveness‖ of primary activity.14 In other words, facility
management is a multi-disciplinary approach, which acts as
a support function to ensure that the organization can
effectively carry out its primary activities. In the case of DIA,
facility management aims to support the primary activity of
air travel, and, as discussed above, draws upon the skills of
many different professions.
The success of the airport is dependent on how well the
facilities are maintained and managed by the Division. Both
the Airport Council International and J.D. Power & Associates
conduct annual passenger satisfaction surveys and have linked facility management
directly to customer satisfaction. The most recent results published by both organizations
note that top-ranked airports prioritize maintenance fundamentals such as clean
facilities, comfortable waiting areas, and ease of movement throughout the airport. In
addition, both organizations note that satisfied passengers are likely to spend more at
airport retail establishments. In 2011, Business Traveler Magazine awarded DIA the Best in
Business Travel Award for the Best Airport in North America. DIA has received this award
for the last seven years.
Maintenance Program Approach
Research identifies four common approaches to administer a maintenance program:
corrective, preventative, predictive, and reliability-centered.
Corrective – Corrective, or reactive, maintenance programs focus on performing
maintenance after a problem or failure occurs.
Preventative – Preventative maintenance programs focus on performing routinely
scheduled maintenance tasks to prolong useful life and prevent failures.
Predictive – Predictive maintenance programs focus on utilizing technology and
standards to determine what maintenance is needed and develop maintenance
schedules based on the actual condition of the asset, rather than on pre-
12 A passenger loading bridge or jetway is a walkway linking the concourse gate to the aircraft, allowing passengers to board
and exit an aircraft. 13
Denver International Airport intranet, accessed July 7, 2011. 14
“FMpedia,” International Facility Management Association Foundation, accessed December 5, 2011, fmpedia.org/gv.aspx.
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determined timeframes as used in preventative maintenance. Predictive
maintenance programs aim to predict equipment failures before they occur,
allowing maintenance personnel to take mitigating actions sooner, and thereby
reducing maintenance costs.
Reliability-Centered – Reliability-centered maintenance programs utilize elements
from corrective, preventative, and predictive approaches, focusing on predictive
elements and incorporating in-depth root-cause analysis of asset failure.
When choosing an approach, facility managers often consider a variety of factors
including budget, facility age, and facility size.
Facility Asset Management System
The Division uses IBM Maximo® (Maximo), an asset management software tool, to track
assets it is responsible for maintaining. Maximo has the ability to manage an asset from
purchase to disposal. In addition, Maximo can track a variety of key asset data elements,
including asset purchase price, condition, value, and work-order history. Maximo has a
variety of other functions, including five important capabilities.
Asset Operations – Organizing asset operations, specifications, and tracking
within a single system.
Maintenance Schedules – Generating comprehensive maintenance schedules
for planned and unplanned activities, resource optimization, and identification of
key performance indicators.
Inventory Planning – Inventory planning to meet maintenance demand.
Vendor Management – Vendor contract management with comprehensive
support for purchase, lease, warranty, and user-defined contracts.
Service Level Agreements – Establishing service level agreements to help align
service levels with business objectives.
Division personnel are responsible for inputting items maintained by the Division into
Maximo as either an asset or a location. Maximo is capable of tracking a multitude of
data elements related to each asset and location contained in the system. When data
elements are recorded consistently and accurately, the Division can utilize this
information to plan for future asset replacement, budgeting, and maintenance cost
monitoring.
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SCOPE
This audit examined current and proposed facility management plans through
November 20, 2011 to ensure that adequate and continuous maintenance occurs on
facilities maintained at Denver International Airport.
OBJECTIVE
To determine how the Denver International Airport Maintenance Division (Division)
maintains facilities, we assessed:
How the Division plans for maintenance activities and manages its facilities
Which maintenance programs the Division uses for long-term operations
How a large facility plans for future growth and expansion without disrupting daily
operations
How a facility effectively transitions to a predictive maintenance strategy
METHODOLOGY
We utilized several audit methodologies to achieve the objectives. These evidence-
gathering techniques included, but were not limited to:
Interviewing Division management and personnel
Reviewing applicable local, state, and federal regulatory requirements
Evaluating prior internal audits conducted at Denver International Airport (DIA)
Reviewing internal and external facility management audits
Evaluating the Division’s approach to managing facilities
Identifying facility management best practices
Benchmarking and researching five other airports
San Francisco International Airport (SFO)
Dallas/Fort Worth International Airport (DFW)
Cincinnati/Northern Kentucky Airport (CVG)
Hartsfield-Jackson Atlanta International Airport (ATL)
Minneapolis-Saint Paul International Airport (MSP)
Reviewing Single Audit and Management Letter findings
Touring the DIA facility
Analyzing workers’ compensation data for the Division
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Reviewing financial information, including identifying budget trends and the
Division’s Capital Improvement Plan
Evaluating the hiring process used by the Division
Performing testing of data contained in Maximo
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The strategy currently
used by the Division
hinders its ability to
efficiently plan, budget,
and measure performance.
FINDING
To Fully Execute its Facility Management Program, DIA Needs to Develop a Comprehensive Asset Management Plan
Denver International Airport (DIA) does not have the fundamental elements of a facility
management program in place. Specifically, the Maintenance Division (Division) does
not have an adequate asset management strategy, is not fully maximizing its asset
management software, and must sufficiently plan for succession within its workforce.
These issues all hinder the Division from utilizing cutting-edge and cost-effective
maintenance strategies.
Facility Management Strategy is Inadequate to Efficiently Plan for
Maintenance Needs
The Division does not have a comprehensive asset management program. Instead, the
Division utilizes an informal strategy to plan for maintenance costs, prioritize maintenance
needs, and track performance. Industry standards and
best practices information provide specific methods that
facilities can use to enhance their facility management
practices and formalize their decision-making processes.
For example, the federal government requires all its
agencies to implement comprehensive asset
management programs. Further, other airports have used
asset management programs to improve facility
management. The strategy currently used by the Division
hinders its ability to efficiently plan, budget, measure performance, and implement
critical improvements.
Current Forecasting and Budgeting Process Leaves the Division Vulnerable to Equipment
Failure
Even though the Division recognizes asset management programs as a best practice,
such a program is not in place. Instead, the Division’s planning process involves informal
discussions between various levels of DIA management. This process is not adequate to
plan for maintenance needs.
For example, DIA’s central plant—the heating and cooling system—has recently
experienced failures, which the Division was unprepared to address. The main
components of cooling equipment consist of four chillers, one of which was relocated to
DIA from Stapleton International Airport (Stapleton).15 Division management provided an
estimated useful life for the chillers of 30 to 35 years. Despite the criticality of this
equipment and the fact that one of the chillers already surpassed its useful life, the
Division did not initiate a formal replacement plan.
15 A chiller is a major component of the refrigeration system that provides water-cooled air throughout the airport.
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The Airport Cooperative
Research Program, the
International Facility
Management Association,
and other airports all
utilize maintenance cost
per square foot to evaluate
success.
In July 2011, one of the original chillers from Stapleton failed. The Division was assessing
replacement strategies but as of January 2012, the chiller remained inoperable. This
leaves DIA in a precarious situation: if another chiller fails, the ability to cool the airport will
be significantly compromised. The long range strategy for upgrading the condition of the
central plant is connected to the plans for the South Terminal Redevelopment Program
(STRP). The hotel component of STRP will be serviced by the central plant. Upgrades or
the expansion of the central plant are being planned in the context of what the overall
needs of the airport will be when STRP is completed.
Similarly, the Division does not budget for unexpected maintenance costs. For example,
based on a review of the Division’s budget and interviews with key personnel, the Division
does not set aside contingency funds for high-dollar assets, such as the tent roof or the
chillers. Thus, when an unexpected failure occurs with a high-dollar asset, significant
monies must be appropriated from another fund for the cost of repair or replacement.
Further, the Division does not know the condition of all assets when budgeting for
maintenance costs. However, asset condition plays a major role in determining the
priority of maintenance needs. The Federal Real Property Council (Council) supports
asset-condition assessment as a best practice. Specifically, the Council requires regular
condition assessments by all federal agencies for all assets. In addition, Dallas/Fort Worth
International Airport (DFW) performs regular condition assessments as part of its asset
management program. However, the Division does not track the condition of most of its
assets, with the exception of the tent roof.16
The Division is in the process of piloting a new baseline condition assessment program for
all passenger loading bridges and plans to apply the lessons learned to the
management of other airport assets. Components of each passenger loading bridge will
be evaluated—good, fair, or poor condition—and cost estimates will be provided for
recommended actions such as cleaning, replacing, or repair. This information will be
used to determine the strategy for maintaining the passenger loading bridges in the
future. While this is an initial step in completing a
baseline condition assessment, a similar assessment of
all assets is necessary for adequate maintenance
planning.
The Division Does Not Utilize Key Performance
Measures to Monitor Success
The Division does not track many of the key
performance measures that can assist management
in measuring the effectiveness of their maintenance
strategies. This negatively impacts the Division’s ability
to successfully plan for maintenance needs and costs.
The Division does measure performance in a number
of ways, including meeting budget goals, fleet
availability, service calls and work orders completed, and safety statistics. Although these
16 DIA contractor, Bird Air, is retained once a year to evaluate the condition of the tent roof.
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are important measures, the Division does not track maintenance cost per square foot.
The Airport Cooperative Research Program (ACRP), the International Facility
Management Association (IFMA), and other airports all utilize this measure as a way to
evaluate the success of a maintenance program. The ACRP also suggests including
more detailed measures, such as measuring maintenance cost per passenger loading
bridge or maintenance costs per runway.
Other helpful maintenance planning performance measures include ―estimated useful
life‖ and the ―facility operating current replacement value index.‖ The Council requires
federal agencies to report on the estimated useful life of assets to help plan for
maintenance needs. This measure is calculated by forecasting the annualized cost to
replace an asset and the annual cost to maintain the asset. When the annual cost to
maintain exceeds the annualized cost to replace, the useful life of the asset has ended.
The graph entitled ―Calculating Estimated Useful Life‖ demonstrates the relationship
between the two measures.
The Division does not have
estimated useful life
information for most assets,
including the tent roof. As
noted above, the Division is
piloting a baseline condition
assessment of the passenger
loading bridges, which
includes estimating useful life.
However, the Division is using
a contractor to perform the
assessment, which comes at
an expense. Utilizing this basic
forecasting method would
allow the Division to obtain
estimated useful life
information without the
expense of a contractor. Yet, in order to utilize this method, the Division would first need
to determine the asset replacement cost information, which it currently does not have.
Finally, the facility operating current replacement value index is noted by IFMA as a way
to gauge the appropriateness of maintenance spending. This measure can be arrived at
by dividing total annual maintenance expenditures by current replacement value of all
assets. The result represents the level of funding expended to maintain an organization's
portfolio of assets. The National Research Council recommends a ―budget allocation for
routine maintenance and repair to be in the 2-4% range‖ when calculating an
aggregate current replacement value.17 Similar to useful life estimates, replacement
value information is needed to determine the appropriateness of maintenance
expenditures.
17 International Facility Management Association, Research Report #32: Operations and Maintenance Benchmarks (2009).
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Without monitoring these key measures, the Division lacks valuable information necessary
to understand how the organization is performing and whether maintenance spending is
appropriate. Further, the Division’s planning and budgeting process is hindered. If the
Division were to begin tracking and monitoring these measures, Division management
would have a methodology by which to tie decisions to concrete data. Tracking this
information would also create an audit trail for decision-makers and allow the Division to
better justify expenditures and prioritize maintenance needs.
Asset Management Program Best Practices are not Employed
An important component of facility management is an effective asset management
program, which emphasizes managing an asset throughout its full life-cycle: planning,
acquisition, maintenance, renovation, and
disposal. This management approach
enables facility managers to maintain,
operate, and upgrade assets using sound
business practices, engineering principles,
and economic rationale to make
decisions.18
Federal Executive Order 13327 instructs
federal agencies to submit to the Office of
Management and Budget (OMB) an
agency asset management plan adhering
to several requirements.19
Identify and categorize all assets.
Prioritize actions to be taken to
improve operations and financial
management of the assets.
Make life-cycle cost estimations
associated with prioritized actions.
Identify and pursue goals, with appropriate deadlines, consistent with the support
of the agency's asset management plan and measure progress against such
goals.
Establish performance measures to determine the effectiveness of asset
management.
Establish and maintain a single, comprehensive, and descriptive database of all
assets.
Although the Division is not required to follow this executive order, it prescribes valuable
guidelines for implementing an effective asset management program.
18 “FMpedia,” International Facility Management Association Foundation, accessed December 5, 2011,
http://fmpedia.org/gv.aspx. 19
Exec. Order No. 13327, 69 Fed. Reg. 5897, 5898 (Feb. 4, 2004).
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This executive order established the Federal Real Property Council (Council), and tasked
the Council with creating additional requirements for federal agencies. The Council
issued guidance to clarify and build upon the executive order.20 The guidance
established ten principles that federal agencies must incorporate into asset
management plans including promoting full and appropriate utilization of assets,
providing appropriate levels of investment to maintain assets, employing life-cycle cost
benefit analysis, advancing customer satisfaction, to accurately inventory and describe
all assets, and that all actions must support agency mission and goals. The guidance
outlines four significant steps.21
A baseline condition assessment of all assets is suggested every two years.
Identification of resources, including human capital, to carry out asset
management plans.
Development of continuous monitoring and feedback mechanisms.
Creation of criteria by which to prioritize maintenance activities that could
include customer urgency, physical urgency based on building conditions,
economic justification, and projected timing and execution.
In addition, three of five respondents to our benchmarking survey reported using
comprehensive asset management programs: DFW, San Francisco International Airport
(SFO), and Hartsfield-Jackson Atlanta International Airport (ATL). Two of these airports,
DFW and SFO, were recently recognized for airport excellence.22 In fact, DFW utilizes in its
asset management plan many of the elements prescribed by the federal Executive
Order. DFW’s plan also includes performing regular condition assessments, using a five-
year rolling plan for both capital improvements and operations and maintenance, and
documenting key processes. Moreover, the survey response from Division management
acknowledges that having a comprehensive asset management program is a best
practice.
DIA would experience many benefits from implementing an asset management
program: increased management awareness of where the organization stands overall; a
structure to help organize and solve issues; and a methodology by which management
could improve its decision-making process and connect decisions to agency goals and
priorities.
20 Federal Real Property Council Guidance for Improved Asset Management, accessed November 9, 2011,
http://www.whitehouse.gov/. 21
Federal Real Property Council, “Guidance for Improved Asset Management,” (December 22, 2004): accessed November 9, 2011, http://www.whitehouse.gov/. Federal Executive Order 13327 § 4(a) established the Federal Real Property Council within OMB to develop guidance and facilitate the success of federal agency asset management plans. The Council is comprised of Senior Real Property Officers, the OMB Controller, the Administrator of General Services, and other Federal officials deemed necessary by the Council Chairman. The OMB Deputy Director for Management chairs the Council. Executive Order 13327 became effective in 2004. Ibid. 22
Dallas/Fort Worth International Airport was ranked third in the world for airport service quality by Airport Council International in 2010 for airports with more than 40 million passengers annually. According to its website, San Francisco International Airport was voted North America’s Best Airport in 2010 by passengers for its modern and efficient facilities and its multi-modal transportation systems.
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The Division is not Fully Maximizing its Asset Management Software
The Division has not input all capital assets into its asset management software tool,
Maximo. For example, the tent roof is not contained in Maximo as an asset. The Division
primarily utilizes Maximo to generate preventative maintenance and service call work
orders, which does not maximize the software’s asset management capabilities. While
Maximo has the ability to track a multitude of data elements identified as best practice,
the Division does not consistently enter this information. As a result, the Division is unable
to rely on the accuracy of asset reports due to the inconsistency of information
maintained. Underutilization of Maximo hinders DIA from moving forward with other
available technology.
Asset Management Test Indicates Data Elements Inconsistently Tracked
As an asset management best practice, the Council requires federal agencies to track
and report on specific data elements for all assets. Based on this research, we selected
eleven data elements and tested if the Division was tracking the element within
Maximo.23 Six of the eleven elements warrant further explanation.24
Asset Condition – A general measure of the asset’s condition at a specific point in
time.
Asset Mission Dependency Rating – The value an asset brings to the performance
of the mission as determined by the governing agency.
Asset Operating Costs – Includes recurring maintenance and repair costs, utilities,
cleaning and janitorial costs, and road and grounds maintenance.
Asset Status – Indicates the operational status of the asset as one of the following
categories: active, inactive, excess, or disposed.
Asset Type – Identifies the asset as one of the following categories: building,
equipment, capital improvement, vehicle, or art.
Asset Value – The cost of replacing the existing constructed asset at today’s
standards.
The test determined that the Division does not consistently monitor data elements
considered significant by the Council in Maximo.
23 To determine whether or not the Division is tracking some or all best practice data elements in its asset management
software system, Maximo, the audit team obtained the population of all DIA capital assets from DIA Finance and Administration. From this population, a judgmental sample was selected including buildings, equipment, capital improvements, vehicles, and pieces of art. The Division is responsible for maintaining 13 of the 44 assets selected in the sample. 24
Federal Real Property Council, Real Property Inventory – User Guidance for FY 2011 Reporting, October 4, 2011, pgs. 5 – 13.
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Table 1: Maximo Asset Test Results
Data Elements Tested Present Not
Present
Asset Condition 0 13
Asset Department 13 0
Asset Location 13 0
Asset Maintenance Costs 12 1
Asset Mission Dependency Rating 5 8
Asset Identification Number 13 0
Asset Operating Costs 0 13
Asset Purchase Price 11 2
Asset Status 12 1
Asset Type 0 13
Asset Value 1 12
Inconsistent tracking of asset information results in several negative effects on the
Division. These include but are not limited to the Division’s inability to achieve five
important objectives.
Asset Identification – Identify what types and the number of assets the Division
possesses.
Asset Importance – Evaluate the importance of each asset with regard to
accomplishing the Division’s mission. For example, the central plant is mission
critical, while an inoperable lavatory is not.
Asset Value – Determine the value of an asset or the amount it would cost to
replace the asset.
Forecasting – Identify how much assets cost when forecasting capital
expenditures and maintenance costs in the future.
Data Dashboard – Rely on data and internal reports used for decision making.
Based on the benchmarking of other airport asset management programs at DFW, SFO,
and ATL, consistent tracking of asset information within a facility management system is a
critical component of a comprehensive well-defined asset management plan. Within the
Division, the Fleet Maintenance section proactively enters asset information into Maximo
and uses it to develop custom data queries. The Division recognizes the reporting
functions and data entry processes utilized by Fleet Maintenance as an internal best
practice.
Ability to Use Building Information Modeling Is Limited by Lack of Comprehensive Asset
Tracking
Building Information Modeling (BIM) is a building development tool that is used widely in
the construction industry but has also proven useful in facility management. BIM is
predominately used in the design phase of a construction project to create three-
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The use of Building
Information Modeling
has proven useful in
facility management.
dimensional building models. Once the construction project is complete, facility
managers may use these detailed models in a variety of ways, such as managing asset
inventory, tracking maintenance history, and enhancing knowledge of asset location.
The Federal General Services Administration has
identified the use of BIM as a best practice. Most facility
management software systems lack the capability to
manage an asset throughout its life cycle, whereas BIM
is intended for use throughout design, construction,
operation and maintenance, and disposal. Despite the
significant start-up costs associated with using this
technology, facilities that use it ultimately realize both
efficiencies and cost savings. These cost savings are accomplished by consistently
updating and changing the information model through construction, operation and
maintenance, renovation projects, and modernizations.25 The use of BIM technology will
improve the ability to diagnose problems and plan repairs.
The Division has expressed interest in utilizing BIM in the future. In fact, DIA is utilizing this
technology to assist with the completion of the South Terminal Redevelopment
Program.26 Although it is evident that the use of BIM would assist the Division in both asset
and facility management, the Division is not using Maximo to its full capability. Prior to
investing in the integration of additional technology, the Division should fully utilize the
capabilities of Maximo and ensure that all assets are contained within the system.
Workforce Succession Plan Must Include Additional Key Elements
Due to a large number of retirement-eligible employees and a lengthy, difficult hiring
process, the Division faces significant challenges in developing workforce planning
strategies. Although steps have been taken to create a succession plan, the Division has
not fully incorporated all available workforce planning strategies as identified by federal
and industry best practice.
Replacement of a Significant Percentage of the Division’s Workforce Approaching
Retirement will be Difficult
Division management recognized the need for the development of a comprehensive
succession plan to prepare for future staffing requirements. Management, in conjunction
with the Career Service Authority (CSA), conducted an analysis and found that 25
percent of Division personnel will be eligible to retire in three to five years. Due to budget
shortfalls in 2009, the City offered retirement incentives to all employees who were
retirement eligible.27 Since the City continues to experience economic hardship,
25 “Strategic Asset Management Solution (SAMS): BIM, CMMS and CAFM,” FMLink, accessed November 16, 2011,
http://www.fmlink.com/ProfResources/BestPractices/. 26
The South Terminal Redevelopment Program consists of a public transit center, an airport hotel, and a terminal plaza. 27
The City offered a voluntary retirement incentive program for all employees covered by the Denver Employees Retirement Plan who were at least 65 years old or who were at least 55 years old and met the Rule of 75, meaning their age and years of service to the City added up to at least 75. The incentive was meant to ease budget constraints and reduce the number of employees facing a potential layoff.
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additional retirement incentive programs may be necessary in the future. If all retirement-
eligible employees within the Division retired during a short period of time, the loss of
critical institutional knowledge and experienced staff would impair the Division’s ability to
provide the high level of service required to maintain the airport.
In addition to potential workforce retirements, the Division faces challenges in filling open
positions due to a lengthy hiring process and the difficulty of identifying candidates who
possess the necessary technical requirements. CSA recruitment data from 2011 shows
that it took the Division an average of 103 days to fill an open position.28 Factors such as
Federal Bureau of Investigation required fingerprinting and criminal history background
checks contribute to the length of the
process. The technical nature of
many of the Division’s positions can
further prolong the hiring process.29
For example, it took the Division over
nine months to fill an HVAC—heating,
ventilation, and air conditioning—
position, despite extending offers to
numerous applicants.
Additional Workforce Best Practice
Strategies Should be Implemented
The Division has performed some
initial succession planning. In
practice, a successful planning
strategy provides a systematic
approach to identifying the best
candidates for key positions.30
Specifically, the Division coordinated
with CSA to develop a DIA
Maintenance Division Succession Planning Initiative. Part of the initiative included a pilot
supervisory training program to develop institutional knowledge internally, which could
be lost due to retirement. This six-month program trained 25 Division employees, and, if
successful, CSA discussed offering annual training opportunities for Division personnel.
Currently, the trainees are waiting for a future supervisor position. The U.S. Office of
28 A copy of the Career Service Authority Recruiting Report, was provided to the Audit Team on November 7, 2011. The report
measured the time between the certification date to the effective date that a promotion or new hire was confirmed. In 2011, section manager final approval to posting (forty-four days) plus average of select DIA Maintenance Division sections recruiting period (fifty-nine days) totaled 103 days. 29
According to October 2011 Census Bureau data, the unemployment rate in Denver was 8.6 percent. However, the DIA Maintenance Division Succession Planning Initiative reports that the technical requirements needed to fill Division positions continues to make it difficult to find and hire qualified candidates. 30
U.S. Office of Personnel Management, Human Capital Assessment and Accountability Framework: Succession Planning Process, (Washington, D.C.: United States Office of Personnel Management, 2005), 1.
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Personnel Management (OPM) recognizes offering internal trainings such as these as a
best practice.31
To enhance the current succession planning strategy, the Division should implement a
structured cross-training program as a compliment to their succession plan.32 Cross-
training provides flexibility for management, leverages limited resources, and allows
employees to learn new skills. The Division has successfully cross-trained Department of
Parks and Recreation personnel to assist with basic maintenance needs during the snowy
months. Management from five of the six Division sections indicated they would be open
to internal cross-training of non-trade-specific employees.
However, the Division has not conducted an all-inclusive evaluation to identify cross-
training opportunities. According to the U.S. Government Accountability Office, "Leading
organizations go beyond a succession planning approach that focuses on replacing
individuals and engage in broad, integrated succession planning and management
efforts that focus on strengthening current and future organizational capacity."33
Although the Division has identified a pool of eligible supervisory candidates for training,
this may not fully address all mission-critical positions.34 According to OPM best practices,
training, developing, and maintaining personnel are critical to the success of an
organization.35
Furthermore, established industry standards emphasize the importance of maintaining
both an effective cross-training and succession planning strategy along with continuous
monitoring of each to ensure successful workforce development and retention occurs.36
In addition to the general measures identified by the Division’s succession planning
initiative, successful implementation should specifically measure: whether at risk or hard-
to-fill positions are clearly identified, candidates to fill these positions are designated
early, vacancies are swiftly filled, Division leadership remains involved, and a consistent
methodology is developed that effectively communicates the results of the program on
an on-going basis. Consequently, the Division should implement these best practices into
their succession planning initiatives to ensure adequate human capital resources are
available to execute an asset management program and advance strategic goals.
31 U.S. Office of Personnel Management, Migration Planning Guidance Information Documents: Workforce Planning Best
Practices, (Washington, D.C.: United States Office of Personnel Management, 2008), 2. 32
Cross-training is generally defined as classroom or hands-on instruction that covers several tasks within a department. The U.S. Office of Personnel Management also describes cross-training as mentoring. For example, planned job assignments, coaching and mentoring, and shadowing within a designated personnel position can occur. 33
U.S. Government Accountability Office, Selected Agencies Have Opportunities to Enhance Existing Succession Planning and Management Efforts, GAO-05-585, (Washington, D.C.: United States Government Accountability Office, 2005), 1. 34
A mission critical position is crucial to the successful completion of daily operations. 35
U.S. Office of Personnel Management, Migration Planning Guidance Information Documents: Workforce Planning Best Practices, (Washington, D.C.: United States Office of Personnel Management, 2008). 36
National Cooperative Highway Research Program, Strategies to Attract and Retain a Capable Transportation Workforce, Report 685, (Washington, D.C.: Transportation Research Board, 2011), 103.
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A Lack of Information in Maximo is Preventing DIA from Transitioning to a
More Cost-Effective Maintenance Program
The Division relies heavily upon a reactive maintenance approach—which focuses on
responding to and fixing problems and asset failures as they occur—rather than
preventing and predicting problems. A reactive maintenance approach is more costly
and less effective for facility maintenance. However, the Division lacks the basic
information necessary to transition to more a cost-effective approach.
Heavy Reliance on Reactive Maintenance is Costly
Management reported that most Division maintenance activities are reactive in nature.
According to the IFMA, reactive maintenance should not comprise more than 55
percent of all maintenance activities for a facility the same age as DIA.37 We requested
records to determine the percentage of reactive maintenance performed during the
audit period. However, the Division was unable to provide such information and, as a
result, we could not determine whether or not the Division is operating within IFMA
recommendations.
IFMA also suggests that relying on a reactive strategy is more appropriate for new
facilities, since the risk of equipment failure is low. However, once a facility starts to age,
this approach can become expensive. Therefore, maintenance activities should shift to
focus more on preventative measures. Now that DIA is 17 years old, this information
suggests that the Division’s maintenance strategy should begin shifting from reactive to
preventative.
Once a facility begins to age, research indicates that reactive maintenance is the most
expensive and inefficient approach. Specifically, the U.S. Department of Energy’s
Operations and Maintenance Best Practices Guide (Best Practice Guide) notes that
there are many disadvantages to reactive maintenance strategies that far outweigh the
benefits. The Guide suggests that an organization may believe it’s ―saving maintenance
and capital cost, [it is] really spending more dollars than [it] would have under a different
maintenance approach…because, while waiting for equipment to break, we are
shortening the life of the equipment resulting in more frequent replacement.‖38
Predictive and Reliability-Centered Maintenance Approaches Represent Significant Cost-
Savings
Transitioning to a predictive maintenance approach, one that determines maintenance
tasks based on asset condition, has many benefits. The Best Practice Guide reports that
proactive approaches to maintenance reduce costs. Savings are realized because
failures usually require more extensive and complicated repairs, which are far more
costly than mitigating maintenance measures. A functional predictive maintenance
37 International Facility Management Association, Research Report #32: Operations and Maintenance Benchmarks (2009).
38 U.S. Department of Energy, Operations & Maintenance Best Practices: A Guide to Achieving Operational Efficiency, (August
2010): accessed, December 14, 2011, http://www1.eere.energy.gov/femp/pdfs/omguide_complete.pdf.
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Research indicates the most
cost-effective maintenance
program is a reliability-
centered maintenance
program.
program increases a facility’s return on investment and provides, on average, significant
savings.39
25 to 30 percent reduction in maintenance costs
70 to 75 percent reduction in breakdowns
35 to 45 percent reduction in downtime
One downside to a predictive maintenance program is that it requires high start-up
costs. Because this program requires increased monitoring and testing of assets to
properly determine asset condition, facilities that implement a predictive maintenance
program must invest in training for staff and new technologies.
Although predictive maintenance programs have many benefits, research indicates the
most cost-effective maintenance program is a reliability-centered maintenance
program (RCM). RCM has similar benefits to that of a pure predictive approach, but it
accounts for the fact that most organizations do not have the type of resources to fully
implement this pure approach. Typically, RCM uses a mixture of all three types of
approaches: less than 10 percent of activities are
reactive, 25 to 35 percent are preventative, and 45
to 55 percent are predictive activities. RCM
recognizes that not all assets are equally important
to the overall mission of the program and defines
maintenance tasks accordingly. It also incorporates
root cause analysis of equipment failures as a key
element.
Both IFMA and the Smithsonian Institute have
identified RCM as a best practice. IFMA reported that RCM represents a way to reduce
downtime of assets, increase cost-effectiveness, and enhance risk management. The
Smithsonian Institute began utilizing RCM and reported several benefits from the
program, including measurable financial savings, more knowledgeable and efficient
staff, reduced overtime spent on repairs, increased asset reliability, reduced
maintenance backlog, improved decision making processes, and improved energy
efficiency.
Several Factors Prevent the Division from Adopting Cost-Effective Maintenance Strategies
Prior to a transition to either a predictive maintenance or RCM strategy, several key
pieces of information must be known about each of the assets to be maintained. This
includes having a master list of all assets; assigning a priority to each asset; ensuring there
is quality documentation of maintenance performed, especially in the event of asset
failure; and knowing the condition of each asset. As previously stated, the Division does
not know this information for many of its assets. Without this information, the Division
cannot adopt better maintenance strategies or reap the benefits associated with those
strategies. Further, as previously noted, the Division does not know what percentage of
maintenance activity is reactive. Without knowing the breakdown of the types of
39 Ibid.
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maintenance activities performed, it is impossible to determine how big of a shift must
occur.
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RECOMMENDATIONS
1.1 Central Plant – The Deputy Manager of Aviation Maintenance should repair or replace
the inoperable chiller immediately to prevent loss of cool air to the airport and a
reduction in service to customers.
1.2 Asset Management Plan – The Deputy Manager of Aviation Maintenance should identify
next steps and a timeline to develop and implement an asset management plan. Within
the plan DIA should: define the mission and goals of the Maintenance Division
specifically, and align the asset management plan and its priorities with the mission and
goals of the Division; ensure that adequate resources are available to carry out the asset
management plan; explore methods to incorporate predictive and reliability-centered
maintenance program components; and address how quality data will be obtained and
tracked for each asset.
1.3 Five Year Plan – The Deputy Manager of Aviation Maintenance should develop a five-
year rolling operations and maintenance plan to coincide with capital planning.
1.4 Contingency Requirements – The Deputy Manager of Aviation Maintenance should
determine contingency needs and work with Financial Planning and Analysis to
reallocate applicable budget funds.
1.5 Maximo Utilization – The Deputy Manager of Aviation Maintenance should utilize Maximo
to its full potential as it relates to asset management and input all maintained assets into
Maximo.
1.6 Baseline Condition Assessment – The Deputy Manager of Aviation Maintenance should
perform a baseline condition assessment, assign a mission dependency rating, develop
estimated useful life, and determine replacement values of all assets and track this
information in Maximo, including the central plant and the tent roof.
1.7 Performance Measures – The Deputy Manager of Aviation Maintenance should establish
performance measures for continuous monitoring and utilize these measures to drive
decision making for asset replacement, asset repairs, future budget, and prioritization of
maintenance needs. At a minimum, maintenance cost per square foot should be
tracked and monitored.
1.8 Succession Planning – The Deputy Manager of Aviation Maintenance should identify
mission critical positions. Working with CSA, the Deputy Manager should continue to
improve and implement succession planning strategies to offset and minimize the risk to
loss of employees and institutional knowledge. Measures of success should periodically
report on: available internal candidates to fill mission critical positions, a measurable
reduction in the time to fill vacancies, and develop a consistent methodology that
effectively communicates the results of the program.
1.9 Cross Training – The Deputy Manager of Aviation Maintenance should review specific
maintenance positions for cross-training applicability in coordination with the DIA
Maintenance Division’s overall succession planning and strategic plan.
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APPENDICES
Appendix A – DIA Maintenance Division Organizational Chart
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AGENCY RESPONSE
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