Rahman - Asset Management

8/7/2019 Rahman - Asset Management

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Strengthening Communities WorkshopStrengthening Communities Workshop

from Policy To Practicefrom Policy To Practice

1111 13 April, 200713 April, 2007Hotel Explorer, YellowknifeHotel Explorer, Yellowknife

Municipal Infrastructure Asset ManagementMunicipal Infrastructure Asset Management

Saidur Rahman,Saidur Rahman, Ph.D.Ph.D.Senior Capital Planning OfficerSenior Capital Planning Officer


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Act Locally and Think GloballyAct Locally and Think Globally

Waste

Reduced Life

Society, Economy and Environment

Roads, Bridges, Buildings,

Transits, Fleets, Water, Sanitary,

Drainage, Energy,

Communications, Parks and

Public Facilities

Consumption

Services

Built EnvironmentBuilt Environment


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Presentation OutlinePresentation Outline

Understanding of infrastructure andUnderstanding of infrastructure andasset managementasset management

Why we need to care about?Why we need to care about?

BenefitsBenefits

Asset management plan developmentAsset management plan development

What is going on around?What is going on around?

Where we are now?Where we are now?

What to do next?What to do next?


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Municipal InfrastructureMunicipal Infrastructure

The Canadian Oxford Dictionary:The Canadian Oxford Dictionary:infrastructure as the basic structuralinfrastructure as the basic structuralfoundation of a society or enterprise; roads,foundation of a society or enterprise; roads,

bridges, sewers, etc. regarded as abridges, sewers, etc. regarded as acountry's economic foundationcountry's economic foundation

City of Edmonton: all the physical assetsCity of Edmonton: all the physical assetsdeveloped and used by the City to supportdeveloped and used by the City to support

the communitys social and economicthe communitys social and economicactivitiesactivities

Community infrastructureCommunity infrastructure


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ClassificationsClassifications Linear and nonLinear and non--linearlinear

Surface and subSurface and sub--surfacesurface

T

ax supported, selfT

ax supported, self--financing and quasifinancing and quasi--commercial or blendedcommercial or blended (CWF(CWF New Tools for NewNew Tools for NewTimes, 2006)Times, 2006)

Community public infrastructure (CPI)Community public infrastructure (CPI)

Stationary and movableStationary and movable

Office buildings, fire hall, storage facilities, arena,Office buildings, fire hall, storage facilities, arena,recreation centres, water and sewage facilitiesrecreation centres, water and sewage facilitiesand solid waste disposal etc.and solid waste disposal etc.

Municipal InfrastructureMunicipal Infrastructure


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Asset ClassificationsAsset Classifications


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Why Municipal Infrastructure?Why Municipal Infrastructure?

Livable and healthy placeLivable and healthy place

SafetySafety

Economic prosperityEconomic prosperity

Quality of lifeQuality of life

In Canada, municipal infrastructure worthIn Canada, municipal infrastructure worth$1.1 trillion, approximately 20% of total built$1.1 trillion, approximately 20% of total built

asset of $5.5 trillion (NRC)asset of $5.5 trillion (NRC) Municipal assets are economic backboneMunicipal assets are economic backbone

and extremely highand extremely high--value assets thatvalue assets thatcannot be allowed to deteriorate or misusecannot be allowed to deteriorate or misuse


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Municipal Infrastructure IssuesMunicipal Infrastructure Issues

Population growthPopulation growthPopulation Growth of CanadaPopulation Growth of Canada

[Source: The Sustainability Report]

42.312050

36.202026

32.742006

29.671996

24.821981

Population

(millions)

Year

Infrastructure demandInfrastructure demand $90$90billionbillion (Infrastructure Canada)(Infrastructure Canada)


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Municipalities areMunicipalities arespending $12spending $12 -- $15$15billion/year onbillion/year on

maintenance and rehabmaintenance and rehab(FCM)(FCM)

Huge backlogHuge backlog

Current funding levelCurrent funding levelwill deficit $1 trillion inwill deficit $1 trillion in60 years60 years (CSCE 2003)(CSCE 2003)

12 20

4457 60.4

110

-150

-100

-50

0

$

billion

1985 1992 1996 2002 2004 2027

Infrastructure Backlog(CSCE 2003)


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Aging ofAging ofinfrastructureinfrastructure

28% of Canadas28% of Canadas

infrastructure isinfrastructure isover 80 years old,over 80 years old,and only 41% isand only 41% isunder 40 years oldunder 40 years old

(CSCE 2003)(CSCE 2003)

(CSCE 2003)


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79% useful service life of infrastructure79% useful service life of infrastructurehas been usedhas been used (CSCE 2003)(CSCE 2003)

Condition degradationCondition degradation

0

10

20

30

40

50

60

70

80

90100

Road

s

Sidew

alk

Bridg

es

Water

Dist

ributi

on

Sewa

gereatm

ent

StormSe

wer

Solid

Waste

Building

sran

sitPa

rks

Con

dition(%

ofAcceptability) Good/Acceptable Needs Repair/Not Acceptable

McGill Survey 2003 (Mirza and Haider)


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Infrastructure gap $50 to $125 billion, 6Infrastructure gap $50 to $125 billion, 6--1010times of current annual infrastructuretimes of current annual infrastructurebudgetbudget

Deferred maintenance for Big Sixes $564Deferred maintenance for Big Sixes $564million (2003 CWF)million (2003 CWF)

First Nations will cost $475First Nations will cost $475 -- $560 million$560 million(2003 CAN$) to address risks for water and(2003 CAN$) to address risks for water and

wastewater assetswastewater assets Estimated cost for upgrading CanadianEstimated cost for upgrading Canadian

sewer infrastructure is $11.8 billion (2003)sewer infrastructure is $11.8 billion (2003)


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MIIP Survey ResultsMIIP Survey Results

NRCNRC--MIIP survey (2004) results:MIIP survey (2004) results:

Total 67 municipalities of over 5000 peoplesTotal 67 municipalities of over 5000 peoples

Questionnaire based on Six WhatsQuestionnaire based on Six Whats

70% spending less than 2% on maintenance70% spending less than 2% on maintenance

28% do not have system to record asset value28% do not have system to record asset value

Assets were rated as 2.9 or good to fair fromAssets were rated as 2.9 or good to fair from

range of 1 to7

ratingsrange of 1 to7

ratings 50% of the assets were at least 30 years old, in50% of the assets were at least 30 years old, in

10 years 75% will be +30 years old10 years 75% will be +30 years old

Represents 32% of Canadian populationRepresents 32% of Canadian population


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Infrastructure at StakeInfrastructure at Stake

Water main breaks: Avg. 700 breaks perWater main breaks: Avg. 700 breaks perday in Canada and USA ($3,000 per repair)day in Canada and USA ($3,000 per repair)

Walkerton tragedy:Walkerton tragedy: E. coli 0157:H7E. coli 0157:H7outbreak in Walkerton. Cost $64 millionoutbreak in Walkerton. Cost $64 million

Peterborough flood in 2004Peterborough flood in 2004: Damage cost: Damage cost$20 to $40 million. Compensation $500/$20 to $40 million. Compensation $500/household and $2500/ small businesshousehold and $2500/ small business

Basement flooding: 30,000 to 40,000 eventsBasement flooding: 30,000 to 40,000 events/year, average cost $3,000/year, average cost $3,000 -- $5,000 /events$5,000 /events(CMHC 2004)(CMHC 2004)


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We Actually NeedWe Actually Need

AccountabilityAccountability

Customer (demand and service)Customer (demand and service)

Staff (Fiscal responsibility, health and safety)Staff (Fiscal responsibility, health and safety)

Environment (regulatory compliance)Environment (regulatory compliance) Risk ManagementRisk Management

Minimize health and safety tragedies/incidentsMinimize health and safety tragedies/incidents

Reduce liability claimsReduce liability claims

Asset SustainabilityAsset Sustainability

Longer term (cradle to grave)Longer term (cradle to grave)

Reserve fundingReserve funding


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So the Challenges are...So the Challenges are...

Infrastructure demand and populationInfrastructure demand and populationgrowthgrowth

Aging of infrastructure and conditionAging of infrastructure and conditiondeteriorationdeterioration

Infrastructure deficitInfrastructure deficit

Service level improvementService level improvement

Lack of integrated systems/tools andLack of integrated systems/tools andconsistent approachconsistent approach

Inadequate fundingInadequate funding

Organizational restructuringOrganizational restructuring


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How These Challenges Can be AddressedHow These Challenges Can be Addressed

Identify maintenance, rehab and renewalIdentify maintenance, rehab and renewalneedsneeds

Increase systems capacity and extendIncrease systems capacity and extend

service lifeservice life Stewardship of the environmentStewardship of the environment

Define levels of service (LOS)Define levels of service (LOS)

Ensure financial sustainabilityEnsure financial sustainability

ImplementImplement Asset Management PlanAsset Management Plan(based on Six Whats)(based on Six Whats)


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Need for ChangeNeed for Change

Asset management needs someAsset management needs somereorganization of public agencies functionreorganization of public agencies function

Traditional designTraditional design--buildbuild-- operateoperate--maintainmaintain

approach is simply inadequate in the face ofapproach is simply inadequate in the face ofcurrent dilemmacurrent dilemma

Adoption of asset management principlesAdoption of asset management principlesand tools (IT tools and financial regulations)and tools (IT tools and financial regulations)


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Evolution of Asset ManagementEvolution of Asset Management

In early 1900s design and durability issues,In early 1900s design and durability issues,versatile structuresversatile structures

After World War II, reliability issues andAfter World War II, reliability issues and

maintenance for mechanical and electricalmaintenance for mechanical and electricalequipmentsequipments

In 1960s green movements, LCC and LCMIn 1960s green movements, LCC and LCM

In 1970s and 1980s PMS, CMMS and WOIn 1970s and 1980s PMS, CMMS and WO

In 1990s IT tools, CMMS, CMMS to AMS,In 1990s IT tools, CMMS, CMMS to AMS,GIS and GPSGIS and GPS

2000 ~ Integrated systems2000 ~ Integrated systems


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What do You Think?What do You Think?

Clerks/municipal employeesClerks/municipal employees -- datadatarecording and reporting using Generalrecording and reporting using GeneralAccepted Accounting Principles (GAAP)Accepted Accounting Principles (GAAP)

Directors of financeDirectors of finance strategic financialstrategic financialplanplan

Utility directors/supervisorsUtility directors/supervisors -- maintainmaintain

the utilities and manage work order systemsthe utilities and manage work order systems

IT directorsIT directors software, hardware, integratedsoftware, hardware, integratedsystems and database managementsystems and database management


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What is Asset Management?What is Asset Management?

What is your definition?What is your definition?

NRC, FHWA and IIAM (Australia)NRC, FHWA and IIAM (Australia)

AssetManagement is a systematicAssetManagement is a systematicprocess of planning, operating, maintaining,process of planning, operating, maintaining,upgrading and replacing assets costupgrading and replacing assets costeffectivelywithminimum riskand attheeffectivelywithminimum riskand atthe

expected levels ofservice overthe assetsexpected levels ofservice overthe assetslife cyclelife cycle


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Asset Management BenefitsAsset Management Benefits

(Life cycle)

Reduce cost

Extend life

Two fold benefits:


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Asset Management BenefitsAsset Management Benefits

Balance betweencost, risk and LOS

Levels of Service

(LOS)

CostRisk

Service

Levels

Service Provided

Service Items

Service Expected

Service Gap

Service Agreed/LOS

Service

Levels

Service Provided

Service Items

Service Expected

Service Gap

Service Agreed/LOSService Agreed/LOS

Levels of Service is acompromise betweenexisting and expectedservice levels

Another benefit is toincrease the levelsof service


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Simple Questions?Simple Questions?

Simple questions butSimple questions but

Is there anything wrong?Is there anything wrong?

What is wrong?What is wrong? What should we do? How do we fix it?What should we do? How do we fix it?

What will the benefits be?What will the benefits be?

How much will it cost and how do we pay for it?How much will it cost and how do we pay for it?

How can we be more proactive?How can we be more proactive?


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Who is Doing What?Who is Doing What?

Australian InitiativesAustralian Initiatives

Institute of Public WorksInstitute of Public WorksEngineering Australia (IPWEA)Engineering Australia (IPWEA)

IIAMManualIIAMManual

Asset Management QuarterlyAsset Management QuarterlyInternational (AMQI)International (AMQI)

Commonwealth Industrial andCommonwealth Industrial and

Scientific Research OrganizationScientific Research Organization(CSIRO)(CSIRO)


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In USAIn USA American Public WorksAssociation (APWA)American Public WorksAssociation (APWA)

AMSAAMSA Managing for Public InfrastructureAssetsManaging for Public InfrastructureAssets

AWWAAWWA Publications and reportsPublications and reports

Federal Facilities Council (FFC)Federal Facilities Council (FFC) -- Investments in FederalInvestments in FederalFacilitiesFacilities

FHWAFHWA

Asset Management Office: Primeron Asset management, LCCA,Asset Management Office: Primeron Asset management, LCCA,GASBand Case StudiesGASBand Case Studies

TransportationAsset Management ManualTransportationAsset Management Manual Software: LCCA, BMSand PMS etc.Software: LCCA, BMSand PMS etc.

NationalAssociation of College and University BusinessNationalAssociation of College and University BusinessOfficers (NACUBO)Officers (NACUBO) Facility Condition Index (FCI)Facility Condition Index (FCI)

Others: WIN, WERF and TRBOthers: WIN, WERF and TRB


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In CanadaIn Canada National Guide (IC, FCM, NRC)National Guide (IC, FCM, NRC)

Canadawide network of $25.7million budgetCanadawide network of $25.7million budget

Over56 best practices in 7 target areasOver56 best practices in 7 target areas

Infrastructure CanadaInfrastructure Canada KnowledgeKnowledge -- Building, Outreach and Awareness (KOA)Building, Outreach and Awareness (KOA)

programprogram

Infrastructure Canada ProgramInfrastructure Canada Program

CanadaStrategic Infrastructure FundCanadaStrategic Infrastructure Fund

Municipal Infrastructure Investment PlanningMunicipal Infrastructure Investment Planning(MIIP)(MIIP) NRCNRC

10municipalities consortium10municipalities consortium

Evaluating tools and techniques for investment planningEvaluating tools and techniques for investment planning


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Transportation Association of Canada (TAC)Transportation Association of Canada (TAC) Primeron Highway Asset Management (1999)Primeron Highway Asset Management (1999)

Bridge Management Guidelines (2004)Bridge Management Guidelines (2004)

Canadian Institute of Charted AccountantsCanadian Institute of Charted Accountants

(CICA)(CICA) Accountingand Reporting for Physical Assets byAccountingand Reporting for Physical Assets by

Governments (1990)Governments (1990)

Accounting forInfrastructure in the Public Sector (2003)Accounting forInfrastructure in the Public Sector (2003)

Canada Mortgage and Housing CorporationCanada Mortgage and Housing Corporation

(CMHC)(CMHC) Study reports on financial planning, alternative financingStudy reports on financial planning, alternative financingand municipal infrastructureand municipal infrastructure

Public Sector Accounting Board (PSAB)Public Sector Accounting Board (PSAB)


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Municipal Infrastructure Data Standards (MIDS)Municipal Infrastructure Data Standards (MIDS)

Municipal Performance Measurement ProgramMunicipal Performance Measurement Program(MPMP)(MPMP)

Ontario Municipal CAOs Benchmarking InitiativeOntario Municipal CAOs Benchmarking Initiative(OMBI)(OMBI)

National Water and Wastewater BenchmarkingNational Water and Wastewater BenchmarkingInitiativeInitiative

Municipal Infrastructure Management SystemsMunicipal Infrastructure Management Systems

(MIMS)(MIMS)

Acts and Legislation (Federal, Provincial andActs and Legislation (Federal, Provincial andTerritorial)Territorial)


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What Can Be Included?What Can Be Included?

What are the absolute requirements?What are the absolute requirements?

How do an existing system fit into?How do an existing system fit into?

How does Asset Management assist inHow does Asset Management assist inmonitoring of condition and performance?monitoring of condition and performance?

How should an Asset Management systemHow should an Asset Management systembe implemented?be implemented?

How Asset Management is compatible withHow Asset Management is compatible withbusiness approach to managingbusiness approach to managinginfrastructure assets?infrastructure assets?


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Asset Management PlanAsset Management Plan

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Asset knowledge

Calculations

Models

Protocols

Decision-making

Step 1 to 3 Data oriented

Step 4 to 5 Methodology and policy issues

Step 6 Decision-making


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Revisit the Six WhatsRevisit the Six Whats

What do you own?What do you own?

What is it worth?What is it worth?

What is the condition?What is the condition?

What is the deferred maintenance?What is the deferred maintenance?

What is the remaining service life?What is the remaining service life?

What do you fix first?What do you fix first?

Calculations

Models

Protocols

Asset knowledge

Decision-making


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What do you own?What do you own? Asset inventoryAsset inventory

DatabaseDatabase

Paper basedPaper based

ElectronicElectronic (relational database and spreadsheets)(relational database and spreadsheets) Integration with GISand CMMSIntegration with GISand CMMS

What is it worth?What is it worth?

Asset valuationAsset valuation

Book value, historical value, depreciated value, PVBook value, historical value, depreciated value, PV

Current Replacement Value (CRV)Current Replacement Value (CRV)

Cost modeling (direct and indirect costs, PSAB, FCA)Cost modeling (direct and indirect costs, PSAB, FCA)

Life cycle cost/Whole life costLife cycle cost/Whole life cost


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What is the condition?What is the condition?

Condition assessmentCondition assessment

Condition grading systems (subjective evaluation, distress basedCondition grading systems (subjective evaluation, distress basedmatrices and hybrid systems)matrices and hybrid systems)

Structural and functional (defects, breaks, hydraulics,Structural and functional (defects, breaks, hydraulics,blockages etc.)blockages etc.)

Protocols (IT tools)Protocols (IT tools)

PMS, BMS, WRc, NAAPIor homegrownPMS, BMS, WRc, NAAPIor homegrown

Prediction modeling (Markov, survival functions, NN)Prediction modeling (Markov, survival functions, NN)

What is the deferred maintenance?What is the deferred maintenance?

Facility Condition Index (FCI)Facility Condition Index (FCI)

Maintenance backlog and economic inflation/deflationMaintenance backlog and economic inflation/deflation

h l i i d hi l i f b i i ll d l d d d l d d di l hi i li k i i h d h li k bl l


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What is the remaining service life?What is the remaining service life? Service life modelingService life modeling

Analytical and probabilistic methodsAnalytical and probabilistic methods

Costs foralternative maintenance, repairand renewalCosts foralternative maintenance, repairand renewal

What do you fix first?What do you fix first? PrioritizationPrioritization

Methods:AHP, B/C, weighted factormethods, PAN, MOOMethods:AHP, B/C, weighted factormethods, PAN, MOOand expert knowledgeand expert knowledge

Ranking:Asset by asset orgroup ofassetsRanking:Asset by asset orgroup ofassets Costs foralternative maintenance, repairand renewalCosts foralternative maintenance, repairand renewal

DecisionDecision--makingmaking

Combination ofall and political agendaCombination ofall and political agenda

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Asset Management FrameworkAsset Management Framework

Planning (proactive and reactive)Planning (proactive and reactive)

Implementation (generally life cycle approach)Implementation (generally life cycle approach)

Acquisition/constructionAcquisition/construction

OperationOperation

MaintenanceMaintenance

Repair and rehabRepair and rehab

decommissioningdecommissioning

EvaluatingEvaluating

Improving/DevelopingImproving/Developing

Planning

Implementting

Evaluating

Im

proving/

Development

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Asset Management FrameworkAsset Management Framework

TOP DOWN

System Knowledge

BOTTOM UP

Asset / Component Data

PROGRAM LEVEL: High-leveldecision-making. Synonymous

to T

op-Down Approach

MIXTURE OF BOTH

PROJECT LEVEL: Detailed

assessment on an asset-by-asset basis. Synonymous toBottom-Up Approach



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p p y p y p p g y p y p p g

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Some Specific IssuesSome Specific Issues

What are the service standards for WTP?What are the service standards for WTP?

What level of details are available for pumpWhat level of details are available for pumpstation? O&M manual?station? O&M manual?

How many water trucks you need?How many water trucks you need?

Show the investment for next 20 years?Show the investment for next 20 years?

Show the critical asset on the map?Show the critical asset on the map?

What are the risks and how will be managed?What are the risks and how will be managed?

How will you prioritize your investment?How will you prioritize your investment?



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Asset Valuation and Management DriversAsset Valuation and Management Drivers

CorporateCorporate

Enhance accountability & responsibility (insurance)Enhance accountability & responsibility (insurance)

Satisfy emerging legislative issuesSatisfy emerging legislative issues

Engineering & OperationsEngineering & Operations Strategic investment decisionStrategic investment decision--making for short &making for short &

long termlong term

Manage future growth & demandManage future growth & demand

FinanceFinance

Stabilize Rates / ReservesStabilize Rates / Reserves



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Asset Valuation MethodsAsset Valuation Methods

MethodsMethods AdvantagesAdvantages DisadvantagesDisadvantages

Book Value,Book Value,Historical CostsHistorical Costs

Data availableData available

Simple methodSimple method

Does not account for anyDoes not account for anychanges as: price, technologychanges as: price, technologyand usabilityand usability

Written downWritten down

replacementreplacementcostcost

Compares replacement optionsCompares replacement options Accurate condition/ performanceAccurate condition/ performance

data requireddata required

CurrentCurrentreplacementreplacementvalue (CRV)value (CRV)

Straight forwardStraight forward

Reflects current conditionReflects current condition

Identify backlogsIdentify backlogs

Misleads when an old assetMisleads when an old assetbehaves like good condition asbehaves like good condition asnew assetnew asset

Net salvageNet salvagevaluevalue

Uses for available data (service life,Uses for available data (service life,material usages)material usages)

Difficult to predict future cost andDifficult to predict future cost andasset usageasset usage

OptimizedOptimizedreplacementreplacementcostcost

Optimized for service life andOptimized for service life andconditioncondition

Reflects actual costs and benefitsReflects actual costs and benefits

Impacts for uncertainties likeImpacts for uncertainties likecondition, performance andcondition, performance andeconomic factorseconomic factors



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Asset Valuation Model AlgorithmAsset Valuation Model Algorithm

Define Component Levels & Attributes

Capture Inventories (integrated system)

Assess Asset Condition

Assess Asset Value & Risk Level

Optimized Replacement Cost

Asset Value

Inventory data

Condition data

Replacement options Cost comparison Depreciation

Performance Criticality

Prob. of failure

Asset Life Expectancy & Remaining Life



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Asset ValuationAsset Valuation -- User vs OwnerUser vs Owner

EconomicsEconomics

Unit costs based on: area, length, diameter,Unit costs based on: area, length, diameter,material, capacity etc.material, capacity etc.

Service life (design life, expected life, age,Service life (design life, expected life, age,remaining life)remaining life)

Condition & performanceCondition & performance

Depreciation factorsDepreciation factors

Salvage valueSalvage value



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Levels of ServiceLevels of Service

Important considerationsImportant considerations What are the services?What are the services?

What are the standards?What are the standards?

What are the target levels of service?What are the target levels of service?

Levels of Service is a qualitative orLevels of Service is a qualitative orquantitative measure to describe how wellquantitative measure to describe how wellor poorly a service is provided by the assetor poorly a service is provided by the asset

or network of assets based on the assetsor network of assets based on the assetsintended purpose within the capacity andintended purpose within the capacity andsatisfactory performancesatisfactory performance



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Performance IndicatorsPerformance Indicators

Performance Measured CriteriaPerformance Measured Criteria KeyKeyPerformance Indicators (KPI)Performance Indicators (KPI)

Asset informationAsset information

StakeholdersStakeholders

Condition and performanceCondition and performance

Operational/maintenanceOperational/maintenance

Service qualityService quality

FinancialFinancial



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Key FactorsKey Factors

System performance (capacity, remainingSystem performance (capacity, remainingservice life, condition)service life, condition)

Serviceability Impact (disruptions in dailyServiceability Impact (disruptions in daily

life)life) Risk tolerance level (health, safety andRisk tolerance level (health, safety and

other direct and indirect costs)other direct and indirect costs)

LongLong--term impact (environmental and otherterm impact (environmental and otherintangible impacts)intangible impacts)

Operation and Maintenance cost (life cycleOperation and Maintenance cost (life cyclebasis)basis)



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Establishing LOSEstablishing LOS

Review Organizational Objectives/Vision

Understand the Asset (inventory, condition and performance)

Determine Customer Expectations (demand, growth)

Identify Required Measures for Levels of Service

Assess and Quantify Risk

Test Affordability (budget planning and forecasting)

Select KPIs and Set Target Level of Services

Policy and Implementation



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Examples of Performance IndicatorsExamples of Performance Indicators

Measured Indicators (WATER)Measured Indicators (WATER) TargetTargetLevelsLevels

Per capita consumptionPer capita consumption ------ MM33 papa

System lossSystem loss


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RiskRisk

Definition: Risk is the probability that anDefinition: Risk is the probability that anevent may adversely affect and measuredevent may adversely affect and measuredby consequences and likelihoodby consequences and likelihood

Common risk assessment methodologiesCommon risk assessment methodologies

QuantitativeQuantitative

QualitativeQualitative

Risk categoriesRisk categories

EngineeringEngineering Public health and safetyPublic health and safety

FinancialFinancial

EnvironmentalEnvironmental



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Risk Assessment AlgorithmRisk Assessment Algorithm



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Asset Management ModelAsset Management Model

InfrastructureRatepayers

ProactiveMaintenance

Levels of Service (LOS)

InvestmentDecision-Making

StakeholdersStakeholders

AssetManagement

Implementation

AssetManagement

Implementation

Planningand

Design

Installation/Construction

Operation andMaintenance

Repair andRehabilitation

Replacement

/Renewal

Life Cycle

Model

Performance indicators

Customer Expectations

Legislative Orders

Asset Valuation

Availability of Resources

BusinessProcess

SustainabilityQuality ofService

Risk Assessment

Asset Information

Condition

Criticality

Probability of Failure

Consequence of Failure

Cost

Processes andProcesses andActivitiesActivities

Processes andProcesses andActivitiesActivities



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Application ToolsApplication Tools

Capital Asset Planning ToolCapital Asset Planning Tool



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Application ToolsApplication Tools

Linear Asset Prioritization ToolLinear Asset Prioritization Tool



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MACA Capital Planning ToolMACA Capital Planning Tool



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MACA Capital Planning ToolMACA Capital Planning Tool



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What Next?What Next?

Think globally and act locallyThink globally and act locally

Learn from failuresLearn from failures

Use best practicesUse best practices Stewardship for the infrastructureStewardship for the infrastructure

Work for the sustainable communityWork for the sustainable community

New Deal a WINNew Deal a WIN--WIN situation for the NWTWIN situation for the NWTcommunitiescommunities



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[email protected][email protected]

Tel: (867) 873Tel: (867) 873--79447944

Questions?Questions?

Waste

Reduced Life

Society, Economy and Environment

Roads, Bridges, Buildings,Transits, Fleets, Water,

Sanitary, Drainage, Energy,

Communications, Parks and

Public Facilities

Consumption

Services

Built EnvironmentBuilt Environment

Documents

Rahman - Asset Management