Asset ManagementAsset ManagementBusiness FrameworkBusiness Framework

New BrunswickNew BrunswickDepartment of TransportationDepartment of Transportation

AASHTO ConferenceAASHTO Conference

April 16, 2008April 16, 2008

Agenda

• What is Asset Management and Why Now?

• How it works

• The Project

• The Results

Asset Management at NBDOT

• NBDOT’s Asset Management Business Framework (AMBF) provides the department with information, tools, business processes and resources to be able to select the:

–right treatment for our assets; –at the right place; –at the right time

Asset Management at NBDOT

Identifies the best time to apply the most economical treatment; minimizing the life-cycle cost

Introduces an early intervention strategy that, over time, will provide an acceptable performance level at the least cost

What is an Asset?

• Capital assets include:– Highways;– Bridges;– Ferries;– Highway fixtures;– Buildings

• Highways and bridges are being introduced first at NBDOT. Other assets will follow during a continuous improvement process.

Why Asset Management Now?

• Accountability– Protect the public investment in our infrastructure

by being fiscally responsible in the planning and execution of departmental activities

• Sustainability Must be able to sustain the condition of a large inventory of

assets over time:3000 Structures18,600 km highways

• 6,000 km (Asphalt)• 9,300 km (Chipseal)• 3,300 km (Unsurfaced)

1,000 km (local asphalt)

12,600 km (chipseal + unsurfaced)

Rural Road Infrastructure = 13,600 km

+

Why Asset Management Now?

Why Asset Management Now?

• Aging infrastructure & increasing traffic and growth in movement of goods

0

20000

40000

60000

80000

100000

120000

Effective Deck Age

Deck a

rea (

Sq

uare

Mete

rs)

Mature Decks

Current Age of Asphalt Highways

Mature Asphalt#km

Age

Why Asset Management Now?

• Information Age (data rich)– Innovative data collection techniques;

– high speed networks;

– advanced data storage capabilities; and

– Geographic Information Systems (GIS)

• The above have given us the ability to process large amounts of information required to do long-term predictive modeling for asset management.

Premise Behind Asset Management

Age

Asp

hal

t C

on

dit

ion

0 yrs 11yrs 17yrs

$1 invested in minor rehab at this point…

Fair

Poor

Very Good

would cost $2-3 for major rehabif delayed until this point…

and $5-6 for reconstructionif delayed until this point

Steep Condition Drop

Good

Overview of Modeling Assets Treatment Selection

PS

DI

Surface Age

100Preservation

Minor Rehab

Major Rehab

Preservation

Minor Rehab

Major Rehab

Long-termInvestment

Plan(Mathematical

Model)

Asset Condition Asset Inventories

  

4 Year Program Tool

  

Treatment Information Deterioration Curves

1- year program

20-year plan

Conceptual Budget

Other Criteria

 

Performance Measures

Actual Budget

Must Do Projects

The Requirement

• Needed to answer:– What investment (now and future) is required to

deliver a defined level of service (condition).

AND

– What level of service (Asset Condition) can we provide with a defined investment.

Using the Model

Three scenarios were generated for the entire highway network using the asset management model:

A. $X million/year

B. $2X million/year

C. Least Life Cycle Cost/Asset Management

Approach

KM

of

Roa

ds

in P

oor

Con

dit

ion

20 Year Rehabilitation Funding Effects on Entire Highway Network Condition (Poor Roads)

A

B

CLeast Life Cycle Cost/Asset Management Approach

2027202720072007 202020202015201520102010

700 -

1,400 -

11,500 -

$ 2X$ 2X

$ X$ X

$ 3X$ 3X

20272027

KM

of

Roa

ds

in P

oor

Con

dit

ion

20072007

20 Year Rehabilitation Funding Effects on Highway Network Condition (Poor Roads)

A

B

C

$ 3X $ 3X (Worst First)(Worst First)

Least Life Cycle Cost/Asset Management Approach

20 Year Rehabilitation Funding Effects on Entire Highway Network Condition (Poor Roads)

202020202015201520102010

700 -

1,400 -

11,500 -

$ 2X$ 2X

$ X$ X

$ 3X$ 3X

Modelling Bridges – Results Condition States

Very Good

GoodFairPoor

*Excludes Bridge Size Culverts

The Project and Challenges

• Four years• $1.5 million• Communication and Consensus building• Change Management• Political Buy-in• Competition from other Departments

A New Direction – Cultural ChangesCurrent Future

Worst-First Least Lifecycle Cost

Program Focus (Silos) Network Focus

Event & Consumption Focus Asset Focus

Short-term Budget Management Long-term Management

Budget Cycle Planning Ongoing Planning

Network-level Data Collection Sampling Inspections

Budget Measurement Performance Measurement

Financial Valuation Managerial Valuation

Continuous Improvement ++++

The Results

• For fiscal 2008 – 2009 the Department has received the largest ever capital budget for rehab of roads and bridges - $340M and a commitment for similar funding for the next two years.

• Projects are coming in at lower than expected bids because of the economies of scale

• Other Provincial Departments with capital budgets have been instructed to implement similar models.

NBDOT’s Innovative Asset Management Solution

• NBDOT received a 2007 Knowledge Industry Recognition Achievement (KIRA) Award & and is a Canadian Information Productivity Award (CIPA) Finalist;

• Featured in CIO and Government Executive Magazines;

• Other provinces as well as countries such as Australia

and Costa Rica are interested.

NBDOT’s Innovative Asset Management Solution

• University of New Brunswick to further develop NBDOT’s AMBF;– Develop new/expanded AMBF methodologies– Develop software solutions for transportation and

municipalities. Expand on NBDOT’s solution.– This will lead to the future establishment of:

• An Infrastructure Management Maturity Model - IM3

• An Asset Management Center of Excellence in New Brunswick

InfrastructureM anagementM atur ityM odelIM 3

M easurement of an Organization's A sset

M anagement CapabilitiesA gainst Best Industry P ractices

Level 1Knowledge &Experience

Level 6Legislated

Level 2InventoryEnabled

Level 3Modeled

Level 4Optimized

Level 5Continuously

Improved

Center of Excellence

• Initially a single graduate course• Major in civil infrastructure sustainable management

– Combines: • traditional engineering,• Finance & economics,• management techniques,• sociology,• information systems

• Draw students and researchers from around the globe• Produces Asset Management research and graduates

Contacts

Ken Fitzpatrick – Director of Information Management and Technology

Ken.Fitzpatrick@gnb.ca

Kim Mathisen – Assistant Director of GIS

Kim.Mathisen@gnb.ca

Mark Gallagher – Civil Infrastructure Management xwave

Mark.Gallagher@xwave.com

Thank you!Thank you!