11th National Conference on Transportation Asset...

11th National Conference on Transportation Asset Management How Internal Governance Arrangements can Influence Transportation Asset Management Implementation Wayne Francisco and Zach Rubin, GHD

Minneapolis, MN

July 11, 2016

https://en.wiktionary.org/wiki/governance

© GHD Inc. 2016

11th National Conference on Transportation Asset Management How Internal Governance Arrangements can Influence Transportation Asset Management Implementation

Asset management – beyond the legislation

Workforce Shortages

Regulatory Compliance

Customer Demands

Growth

Climate Change

Financial Constraints

Security & Emergency Response

Aging Infrastructure

© GHD Inc. 2016


Good governance in asset management

• Establishing a governance structure for your asset management program, providing clear policy direction on your asset management objectives

© GHD Inc. 2016


Good governance in asset management • Knowing the characteristics of the services you provide and determining what you need

to invest in or spend on your assets in order to expand or sustain your services

© GHD Inc. 2016



• Knowing the condition of your infrastructure and demonstrating that it is performing efficiently and effectively

By Editor5807 (Own work) [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC BY 3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons

• “Understanding asset deterioration rates and impacts on service life of operations, maintenance and rehabilitation activities.”

© GHD Inc. 2016



• Having spending plans that reflect reliable, confident data analysis using integrated technology solutions; and, reflect analysis of actual performance gained from previous spending

• “It is imperative that the business architecture for these solutions aligns with our EAM Policy Principles, such that accurate and accessible data is used in our life cycle asset management processes.”

© GHD Inc. 2016



• Being aware of and actively managing the business risks associated with your critical assets and prioritizing investment decisions towards your significant risks

• “All risks to our infrastructure associated with natural disasters, climate change, security and other major hazards or threats and the inherent vulnerability of our infrastructure to those threats are eliminated or otherwise acceptably managed such that we sustain our desired capability to provide services.”

© GHD Inc. 2016


An asset management policy creates the opportunity for change

• Spending decisions need to be justified

• Getting started on changing the way spending decisions are made is problematic as the results may not be clear for many years

• Without appropriate policy direction there can be a reluctance to change

• Establishing a policy document provides department heads with the opportunity to lead change to better ways of working

“An Asset Management Policy is the cornerstone of an organization’s approach to Asset Management. As such it provides both the confidence that the organization is translating its overall organizational strategic plan into an effective Asset Management Plan, and provides the start of an organization’s ‘line of sight’, the golden thread of rationale which ultimately justifies every Asset Management activity the organization undertakes”. The Institute of Asset Management 2011 “Asset Management Landscape”

© GHD Inc. 2016



• Conventionally a policy establishes the ‘what and why’, in this case for the application of asset management.

• It provides the opportunity to set out the principles and commitments, and to make the organization aware of these.

• It should be a defining statement

for the organization and one that provides the direction and purpose for all that is contained in the AMS.

“The VP Operations, the VP Engineering and the VP Business Support are responsible for the

administration of this instruction in close coordination with the Executive Leadership Team. This policy shall be

implemented through our Strategic Asset Management Plan.”

• “Asset management strategies are planned and implemented such that work is undertaken on our safety critical assets and components as a first priority.”

• “Asset management strategies are planned and implemented such that sustaining or improving customer service performance is an inherent objective for every activity we undertake.”

© GHD Inc. 2016



“The Policy is a key reference document as we continuously improve our business processes and develop additional ISO 55001 -compliant management system documentation.” “We will annually audit and report on the implementation of this EAM Policy and respond to the findings from the audit to continually improve both the Policy and its implementation. This audit will be conducted as part of the annual audit of our EAM System, which is separately documented as our EAM System Audit and Reporting Procedure. The procedure is contained as an exhibit to this EAM Policy document.”

© GHD Inc. 2016


Creating an Asset Management Division to drive change

“Proper asset planning is a joint

responsibility”

“Brings pavement and bridge teams

together”

“Develop policies and procedures to

support strong asset management

approach” “Instituting

comprehensive asset management

metrics”

“Develop a Statewide Asset

Management Plan”

“Develop an Asset Management

System”

“Using performance measures to evaluate the effectiveness of our investments”

© GHD Inc. 2016


Creating a Program Management Office to drive change

• AM Steering Committee – Chaired by Executive Sponsor

• AM Working Committee – Chaired by Program Manager

• Program Manager leads the PMO

EXECUTIVE TEAM

AMPROGRAM

MANAGEMENTOFFICE

AMSTEERING

COMMITTEE AMWORKING

COMMITTEE

POLICYDIRECTION

PROGRAMREPORTING

COORDINATION, ALIGNMENT AND

TRAINING

ISSUES, NEEDSAND REPORTING

DEPARTMENTS

REGULATING AGENCYAM PROGRAMMANAGEMENT

OFFICE

POLICY, GUIDANCE &PROJECT APPROVALS

COORDINATION& REPORTING

OTHER AGENCIES

© GHD Inc. 2016


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Acquire – Design Acquire – Install/Construct Acquire – HandoverAcquire – CommissioningAcquire – 10% Design Concept

Incorporate Into Design

Specification

2.3

Develop and Issue Design

RFP

2.4

Develop Build and Commissioning

Specification3.2

Appoint Construction

Manager

2.6

Supervise Design

Services

2.5

Finalize Assets Commissioning and Handover

5.11

Service Management RequirementsService characteristicsPerformance criteria (e.g., capacity)Security needs

6.2

Safety Management RequirementsSafety risk assessmentPublic/customer and staff safety needsPersonnel training needs

6.3

Revenue Collection and Cost Control RequirementsBusiness criticality assessmentEquipment reliability needsCost breakdown needs

6.4

Maintenance Management RequirementsReliability, Availability and MaintainabilityAsset maintenance activitiesMaintenance data and information needsMaintenance Labor, Equipment, Material & Service resources

7.2

Maintenance Testing RequirementsTest criteria for safety, reliability, maintenance and warranty compliance

7.3

Financial & Cost Control RequirementsBudget format for capital project and recurrent costsAsset depreciation approachAsset disposal planning

8.2

Procurement Planning RequirementsProcurement process – design, install/construct and manageWarehouse/spare parts planning

8.3

Personnel Planning RequirementsType and numberSkills and experiencePersonnel training needs

8.4

Target Operating Model

6.5

Target Maintenance

Model

7.4

Target Resources Model

8.5

Service Management Requirements

6.6

Safety Management Requirements

6.7

Revenue Collection and Cost Control

Requirements

6.8

Maintenance Management Requirements

7.5

Maintenance Testing

Requirements

7.6

Financial and Cost Control Requirements

8.6

Procurement Planning

Requirements

8.7

Personnel Planning

Requirements

8.8

Design Services

3.1

Installation/Construction

Services

4.1

Installation/Construction Supervision

Services3.3

As-Built Assets Documentation

4.2

Assets HandoverSignoff

5.12

Life Cycle Asset

Management Plan5.13

Brief internal stakeholders on

Conceptual Design

2.1

Incorporate requirements into development of Commissioning, Acceptance, and

Management Plan

5.5

Update Commissioning, Acceptance and

Management Plan based on Design

Solution

5.6

Project Approval Process

1.3

Update Commissioning, Acceptance and

Management Plan based on As-Built

Assets

5.7

Coordinate internal stakeholders to

develop life cycle management

requirements and owner performance

requirements5.2

Commissioning Services

4.3

Redo Commissioning

Services

4.4

Commissioning Services

3.6

Redo Commissioning

Services

3.7

Review/Redevelop Commissioning

Specification and Redo

Commissioning2.8

Commissioning Acceptance

5.10

Develop Preliminary Design

Specification

2.2

Assign responsibility to develop and deliver

Commissioning, Acceptance and

Management Plan

5.4

Develop and Issue Install/Construct

RFP

2.7

No

Maintenance Management

Plan

7.7

Resource Management

Plan

8.9

Operations Management

Plan

6.9

Agency:

Division:

Signed Off By:

Drafted By:

Location:

Date:

PROCESS NAME: GHD Inc.

Business Consulting

Dylan DesimoneMadeleine Tecci

Charlotte, NC

JUNE 28. 2016Wayne Francisco

As-Is To-BeProcess Number:

Handing Over a new Asset or Group of Assets

© GHD Inc. 2016

EXAMPLE FOR DISCUSSION ONLY

Review Commissioning

5.9

Life Cycle Asset Management

Plan

5.1

Maintenance Planning Model

7.1

Operations Planning Model

6.1

Resource Planning Model

8.1

Develop Scope for Project Proposal /

Business Case

1.2

(GATE 2)

1.4

(GATE 3)

1.5

Finalize Design and Install / Construct Services Contracts

2.9

(GATE 4)

1.6

Needs Assessment

1.1

Construction Administration and

CommissioningServices

3.4

• O&M Manual• Life Cycle Management

Strategies• Training Plan• Digital Asset Data• As-built Drawings

3.5

Approve Commissioning

5.8

Develop Preliminary Commissioning

Specification

5.3

Practical benefits from establishing internal governance arrangements This Policy applies to all aspects of our asset life cycles – from conceptual planning, initiation, design,

build/acquisition, manage/maintain and retirement/disposal phases of the lives of all of our assets.

© GHD Inc. 2016


Questions? Good Governance Good Management 1. Do you have a governance structure in

place that provides clear direction on your asset management objectives?

2. Do you know what level of service your infrastructure is providing and what you need to invest in or spend on your assets in order to expand or sustain your services?

3. Do you know what condition your infrastructure is in and can you demonstrate that it is performing efficiently and effectively?

4. Do you have documented spending plans that reflect reliable, confident data analysis using integrated technology solutions?

5. Are you aware of and actively managing the business risks associated with your critical assets and prioritizing investment decisions towards your significant risks?

Wayne Francisco GHD Consulting Inc. 704-342-4910 [email protected]

“Improving your asset management practices requires the application of change management techniques and a relentless focus on developing sustained performance improvements”

Zach Rubin GHD Consulting Inc. 240-206-6828 [email protected]

mailto:[email protected]

mailto:[email protected]

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