Upload
russell-newton
View
219
Download
3
Tags:
Embed Size (px)
Citation preview
Infrastructure Asset Management:Beyond the Techniques, Tools and Technologies
Mayors Water CouncilThe United States Conference of Mayors
May 1, 2015
2
Managing infrastructure assets is nothing new
8th and 9th Century - Rome’s abandoned aqueducts were rehabilitated and reused
14th Century – Constitution of Siena, Italy required maintenance the City’s fountains and other public works
3
In past however, management of infrastructure assets has been limited to:
• Individual and isolated focus
• Stand-alone actions
• Unverified information and decentralized management of data
• Un-integrated tools
• Ad-hoc meetings
• Decisions based on perception rather than fact
4
Evolution of modern Asset Management
UK Asset Management Specification (PAS 55)
New International Standard for Asset Management
(ISO 55000)
The Risk-Based Approach
Comprehensive International Guidance
Comprehensive U.S.Guidance
Restructuring of water sector in Australia and the UK
5
Asset Management has also become more strategic over the last several years
• Collecting asset data
• Entering data into Computerized Maintenance Management Systems (CMMS)
• Focus on the risk of asset failure for infrastructure investment decisions
• Optimize maintenance by eliminating non-value activities
• Asset management is not just
about assets
• Successful and sustainable
asset management requires
leadership, organizational
alignment, and coordination
1st Generation AMAsset Information
What do we have?
Where is it?
What condition is it in?
How does it perform?
Maintenance Management
2nd Generation AMAsset Strategies
3rd Generation AMTotal Integration
Optimization
Risk-based
System controls
Failure mode analysis
RCM
Coordinated strategy
Service standards
IT integration
Financial analysis
Organizational alignment
6
“Asset Management tools and technologies may be helpful, but the engagement of the workforce, the clarity of leadership, and the collaboration between different departments and functions are the real differentiators of a leading asset management organization.”
The Institute of Asset Management
Asset Management has also become more strategic over the last several years
1st Generation AMAsset Information
What do we have?
Where is it?
What condition is it in?
How does it perform?
Maintenance Management
2nd Generation AMAsset Strategies
3rd Generation AMTotal Integration
Optimization
Risk-based
System controls
Failure mode analysis
RCM
Coordinated strategy
Service standards
IT integration
Financial analysis
Organizational alignment
7
Today, Asset Management focuses on integrated processes and tools to facilitate better decisions
• Minimizing lifecycle costs
• Establishing service levels
• Evaluating, understanding and managing risk
• Fact-based decision-making for maintenance, rehabilitation and replacement
• Optimization of operations and maintenance
• Involving collaboration among staff and multi-disciplinary activities
• Consistency across the enterprise
Asset Management
An integrated set of processes to minimize the lifecycle costs of
infrastructure assets, at an acceptable level of risk, while continuously delivering established
levels of service
8
Implementing Asset Management provides benefits to both internal and external stakeholders
• Informed and defensible asset investment decisions
• Better managed risk
• Improved asset reliability
• Improved efficiency and effectiveness
• Improved service delivery
• Improved customer satisfaction
• Improved regulatory compliance
• Improved bond rating
• Possible higher priority ranking for SRF
• Improved internal coordination and communication
Benefits
9
Improved ability to explain and defend investments is ranked the highest benefit among utilities
Top Five Benefits From Asset Management Approach
451 responding utilities
88%
79%76%
70%
73%60%
65%54%
34%
63%51%
34%
52%46%
36%
Improved Ability to Explain and DefendBudgets/Investments to Governing Bodies
Better Focus on Priorities
Better Understanding of Risks/Consequences ofAlternative Investment Decisions
Non-Cost Savings Business Benefits
Increased Ability to BalanceBetween Capital and Operating Expenditures
High InvolvementMedium InvolvementLow Involvement
10
Techniques, tools, and technology are all important elements of modern Asset Management• Modern Asset Management incorporates techniques and
business processes such as:
– Preventive maintenance optimization
– Failure modes and effect analysis
– Multi-attribute utility analysis (MUA)
– Business case evaluations
• Assessment of asset condition and performance is made more effective by tools such as:
– Thermography
– Ultrasound (ultrasonography)
– Machine-to-Machine (M2M) wireless monitoring and control
– Electromagnetic testing
• Technology makes managing assets more efficient
– Computerized maintenance management systems (CMMS)
– Geographic information systems (GIS)
– Mobile devices and other hardware
– Modeling and other software
11
Best practice for Asset Management is as much about the organization as it is about the infrastructure assets
• The new international Asset Management standard emphasizes– Organizational understanding
– Needs and expectations of stakeholders
– Leadership and commitment
– Organizational roles, responsibilities and authorities
– Resources
– Competence
– Awareness
– Communication
– Managing change
• 10 of the 24 requirements of the Asset Management standard address the above people-focused elements
12
Successful and sustainable Asset Management requires staff to adopt to a new way of doing business
• Integrated approach to assessing issues and making decisions
• Consistent use of methodologies
• Collaboration across functions
• Acceptance and adoption of new processes and practices
• Willingness to acquire new skills
• Proactive communication
• Changes in the way employees relate to each other and their work
13
Changes in work processes and staff capability must be carefully planned and implemented
Most transformational programs fail to be fully operationalized
Source: McKinsey Quarterly Transformation Executive Survey, 2008, Next Generation PMO KIP Team
Other obstacles
Inadequate resources or budget
Management behavior does not support change
Employee resistance to change
30 70
% of efforts failing to achieve target impact
Change program failure rate Reasons for failure
39
33
14
14
14
Change mechanisms must be customized to meet the utility’s goals and challenges
• Begin with an assessment of the organization’s readiness for change
• Identify the possible barriers/opportunities that will impact the transition
• Use a change readiness survey to align program implementation to staff change capabilities and to leverage stakeholder implementation support
• Identify change sponsors who will be instrumental to helping colleagues interpret and navigate through the new rules of business.
• Enable employees to actively participate in program development and implementation
Decrease staff resistance
Prevent dips in performance
Preclude negative regulatory or customer attention
15
Measure the seven traits of change readiness to identify capabilities of staff and identify champions
Target Range
ChangeReadiness
Resourcefulness
Optimism
Adventurousness
Passion/Drive
Adaptability
Confidence
Tolerance forAmbiguity
Jones Smith Hill Green10
12
14
16
18
20
22
24
26
28
Resourcefulness
Optimism
Adventurousness
Passion/Drive
Adaptability
Confidence
Tolerance for Ambiguity
16
Knowing an organization’s culture can suggest the most effective ways to bring about positive changes
Flexibility & Discretion
Stability & Control
Inte
rnal
Foc
us
& I
nteg
ratio
n
External F
ocus & D
ifferentiatio
n
Culture has been shown to impact:
• Effectiveness & efficiency of work
• Morale & engagement
• Physical & emotional health
• Success of programs
• Customer satisfaction
• Return on investment
The Competing Values Framework
17
Changes needed for successful and sustainable Asset Management are more easily facilitated in some cultures
Change Initiatives may emphasize customer engagement and clear dashboards that track results to performance
Change initiatives may emphasize continuous improvement opportunities and individual recognition for contributing to the whole
Change initiatives may leverage visible leadership and management mentoring
Change initiatives may leverage collaborative efforts and grassroots communications
Typical organizational culture profile of a municipal public utility
18
A structured approach will provide staff with the impetus and means to adopt change
“…I see others conducting themselves
differently and getting rewarded for it…”
“…I have the skills to act in the manner that
is required of me…”
“…I know specifically what is being asked of me in my daily work…”
“…I understand and believe what the organization is trying to do and it makes sense to me on a personal level…”
“…I am provided with the proper incentives to make the change…”
Reinforcement &Recognition
Awareness &Conviction
Desire &Encouragement
Knowledge
Ability
“I will change the way I work
if I have…”
19
Most importantly, achieving success depends on moving the staff away from traditional approaches
Capital cost
Renew assets based ontheir poor condition
Maintenance preserves assets
Most equipment is morelikely to fail as it gets older
Designed to build
Collecting data
Best practices from the water industry
Asset-centric
Lifecycle cost
Renew assets based ontheir high risk of failure
Maintenance preserves asset function
Most failures are not related toequipment age
Designed to operate and maintain
Collecting data which leads tomeaningful decision-making
Best practices from all industries
Customer-centric
INOUT
20
Consider the lifecycle of assets to identify opportunities for reducing costs
• Involve operations and maintenance staff
• Ensure compliance with design, specs and codes
• Manage warranties
• Optimize planned maintenance
• Focus on failure modes
• Monitor, report and adjust
• Evaluate alternatives
• Perform business case evaluation
• Ensure risk is sufficiently reduced at lowest
lifecycle cost
• Sell
• Reuse
• Recycle
• Apply uniform prioritization criteria
• Involve operations & maintenance
• Perform value engineering
• Consider alternate project delivery
• Standardize equipment
• Capture asset dataAcquire/Install/Construct
Commission
Operate &Maintain
Rehabilitate
Decommission/Salvage
Plan/Design
TheAsset
Lifecycle
21
Run to Failure
PreventiveMaintenan
ce
PredictiveMaintena
nce
Reliability-centered
Maintenance
Optimize maintenance activities to increased asset reliability
Maintenance Level = f (consequence of failure)
22
Manage assets to keep the risk of failure at an acceptable level
• Understand the consequences of asset failure
• Forecast the likelihood of asset failure
• Consider multiple options for mitigating risk:
– Rehabilitation and replacement
– Enhanced maintenance
– Improved response and recovery
– Demand management
23
For success: Take the time to create the right strategies and choose the right people for the key roles
Goals to enacting this approach
Asset Management Champions
Strategies Role
• Create shared AM vision and understanding across the utility
• Increase staff willingness to participate in AM
• Ensure staff are able to enact their role within AM
• Provide recognition for desired AM behaviors
• Change Readiness Assessment
• Tactical & Message Development
• Information dissemination• Visible Leadership• Mentoring• Feedback
Key Sponsor Role and Activities
Thank You
Alan B. Ispass, PE, BCEE
901 New York Avenue, NW
Washington, DC 20001
202-513-2426