January 25, 2017 Bavarian Inn Lodge, Frankenmuth …...January 25, 2017 Bavarian Inn Lodge,...
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January 25, 2017 Bavarian Inn Lodge, Frankenmuth Tom DeLaura, P.E. Dave Vago, P.E.
Transcript of January 25, 2017 Bavarian Inn Lodge, Frankenmuth …...January 25, 2017 Bavarian Inn Lodge,...
January 25, 2017
Bavarian Inn Lodge, Frankenmuth
Tom DeLaura, P.E.
Dave Vago, P.E.
Overview of Fundamental Asset Management Concepts
Review of five components of asset management and tools
Update from MDEQ
Receive insight from our contemporaries regarding the work that they have done.
Interact with peers and practioners
The chicken
OVERVIEW / REVIEW
Provide Asset Visibility
Compare performance, costs, reliability
Assign Costs of Ownership
Labor and materials charged to the correct assets
Long-Term CIP Planning and Programming
R&R&R based on actual condition and performance
Eliminate Fiscal Surprises
Reliability Centered Maintenance and Operations
Asset Management IS about:
Strategizing – What is our mission?
Planning – How can we better accomplish it? ◦ Maintenance
◦ CIP
◦ Better use of scarce $$
Execution – How well are we doing?
Asset Management IS NOT about software
Asset management is more than “How much SAW Grant money can I get?”
Management doesn’t simply decide one day to “DO” Asset Management.
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An integrated optimization process of “managing infrastructure assets to minimize the total cost of owning and operating them, while continuously delivering the service levels customers desire, at acceptable levels of risk.”
Managing Public Infrastructure Assets, 2001
NACWA (AMSA), AMWA, WEF, AWWA
“Asset Management” Defined
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The manual starts with basic asset management principles and works through to practical steps for implementing advanced asset management systems within your organization. The manual contains sections outlining asset management practice in NZ, AUS, SA, UK and US. Loaded with informative case studies, and presented in a easy to use format, the International Infrastructure Management Manual is the ultimate reference document for any asset manager.
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Manage the entire life
of assets, and
receive the best
return on
investments.
Asset management is a change in the way
an enterprise does business
Change is about people
Change requires
buy-in
People are inherently resistant to change
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A robust Asset Management program includes: Asset Planning Asset Creation/Acquisition Financial Management Asset Operations and Maintenance (O&M) Asset Condition/Performance Asset Rehabilitation/Replacement Asset Disposal/Rationalization Asset Management Audit and Review
All of which require planning and execution at all levels
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1. What is the current state of my assets?
2. What is my required level of service (LOS)?
3. Which assets are critical to sustained performance?
4. What is my best O&M and CIP investment strategies?
5. What is my best long-term funding strategy?
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Question #1
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Question #1 Question #2
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Question #1 Question #2
Question #3
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Question #1 Question #2
Question #3 Question #4
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Question #1 Question #2
Question #3 Question #4 Question #5
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1. What is the current state of
my assets?
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Steps 1
2
3
4
5
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Assess and Report on the current
state of the Assets
Conduct investigations to
identify defects
Identify and list actions
that are required
Prioritize actions
Estimate the costs to repair,
maintain or replace
Review assessments to improve value-added work
ASSESS
INVESTIGATE
IDENTIFY
PRIORITIZE
ESTIMATE
REVIEW
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Example - Asset Registry
Asset Inventory
Management Unit
Installation
Date
Expected
Service Life
(Yrs)
Current
Condition
Code
Projected
Service Life
(Yrs)
Estimated
Remaining
Service Life
(Yrs)
Pump Station, Cinder Block 1985 75 2 2060 54
Roof, membrane 1995 20 2 2015 9
Pump 1, Pump – 300 GPM 2000 25 1 2025 19
Pump 1, Motor – 275 HP 1995 10 4 2005 1
Pump 2, Pump – 300 GPM 2000 25 1 2025 20
Pump 2, Motor – 275 HP 1995 10 5 2005 0
Motor Control Center 1985 20 3 2005 4
SCADA – RTU 1995 10 3 2005 2
Wet Well Level Meter 1999 8 3 2007 2
HVAC 1995 20 2 2015 9
Security Fence 1985 25 5 2010 0
Condition Code: 1 – Very Good; 2 – Good; 3 – Fair; 4 – Poor; 5 – Very Poor; 0 – Abandoned/Failed
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Condition
Rank Condition Condition/Description
1 Very Good Operable and well maintained, like new.
2 Good Superficial wear and tear visible, not new.
3 Fair Significant wear and tear, minor deficiencies.
4 Poor Major deficiencies, marginal performance.
5 Very Poor Obsolete, unserviceable, poor performance.
2. What is my required level of
service (LOS)? • What is the demand for my
services by my stakeholders?
• What do regulators require?
• What is my actual
performance?
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3. Which assets are critical
to sustained performance? • How does it fail?
• How can it fail?
• What does it cost to repair?
• What are the
consequences of failure?
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Criticality
Rank
Effect
Consequence
1 Negligible • Minor loss of function
• No discernible effect on the facility or its operations
2 Minimal • Minimal curtailment of operations
• Minimal investment to restore operations
• Normal contingency planning covers loss
3 Marginal • Noticeable impact
• May briefly suspend some operations
• Some investments necessary to restore operations
• May cause minor personal injury
4 Critical • Personal injury, substantial economic damage, or
environmental impact
• Operations immediately and temporarily suspended
• Restoring operations requires significant investments
5 Catastrophic • Death(s) and/or injuries or disastrous impact on
operations
• Long-term or permanent closure
• Operations cease immediately
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Redundancy (R) reduces (C)
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ASSET RANKING
The Business Risk Score for any given asset is
derived by multiplying the condition score by the
criticality score by the risk mitigation factor.
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ASSET RANKING
For example: Probability of Failure = 4.0
Criticality = 4.0
Redundancy = 0.1
Business Risk = 4.0 x 4.0 x 0.1 = 1.6
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25 20 15 10 5 5
20 16 12 8 4 4
15 12 9 6 3 3
10 8 6 4 2 2
5 4 3 2 1 1
5 4 3 2 1
H igh Priority (16 - 25)
M edium Priority (6 - 15)
Low Priority (1 - 5)
Probability o f Failure
Cri
tic
ality
W ork Priority M atrix
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Date: March 19, 2009
Sta 4 Walnut #3 PI 4 2.67 2.75 7.33
8 Pump Control Panel PI 8 5.00 5.00 25.00
18 Safety (Lock out/Tag out) PI 18 5.00 3.00 15.00
1 Process Pump #1 PI 1 2.33 5.00 11.67
2 Process Pump #2 PI 2 2.33 5.00 11.67
15 Process Piping and Valves PI 15 2.83 2.00 5.67
6 Generator PI 6 2.67 1.00 2.67
7 Main disconnect and ATS PI 7 2.50 1.00 2.50
13 Structural PI 13 1.00 1.00 1.00
# Equipment Description Asset ID
Criticality (C) (see
back-up sheets)
1 = very low
5 = very high
Probability of Failure
(P) (see back-up
sheets)
1 = very low
5 = very high
Business Risk
(BRE=PxCxR)
1 = very low
25 = very high
4. What are my best O&M
and CIP investment
strategies? • What alternative
management options
exist?
• Which are the most
feasible for my
organization?
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Assets with greatest BRE scores are likely
candidates for immediate rehabilitation or
replacement.
Assets with life left in them need to be analyzed
for best life cycle strategy.
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4. What are my best O&M
and CIP investment
strategies? • What alternative
management options
exist?
• Which are the most
feasible for my
organization?
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QUESTIONS???
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David Vago
Midwest Asset Management Consultants
Tom DeLaura
DeLaura Consulting
DeLaura Consulting, LLC
