Optimizing Plant Infrastructure: A Formalized, Asset

Management Approach

to Long-Term Capital

Planning

Matt Manchisi – Hazen and Sawyer

AWWA NJ Fall Meeting 2018Neptune, NJSeptember 18, 2018

Today’s Focus

AM Pilot: Water Treatment Plant

Background

Outcomes

Next Steps

Discussion

Background

Department of Utilities Has a Long History

Water and wastewater services

date back to the late 1800s

Water treatment capacity

136 mgd

Over 750 miles of sewer collection system (9% forcemain) and 135

sewer pump stations

822 miles of water distribution system piping

and six booster stations (4 potable, 2 raw) and nine water

storage tanks

Typical AM Drivers and Trends

External Forces Asset Age & Condition

Service Levels Cost & Efficiency

• Aging/deteriorating

infrastructure

• Justification for

capital/O&M

investment

• Regulatory compliance

• Growth and demand

• Pressures from the

public and elected

officials

• Demand for improved

service levels and

reliability

• Prevention of critical

asset failures

• Drive to do “more

with less”

• Move toward a

“businesslike” culture

• Large organizations embracing AM as an organizational model

• Focusing on capital planning, business case development and project justification

• Leveraging data in a more effective way (data-driven management)

• Focusing on machine-learning/predictive analytics

DRIVERS TRENDS

Initial AM Strategy Was Simple

1. WHAT do we have?

2. WHAT condition is it in?

3. WHEN should we replace/rehabilitate?

4. WHAT will it cost?

5. HOW do we prioritize assets from different systems?

6. HOW do we sustain the program?

AM Pilot: Water Treatment Plant

AM Inventory and Analysis

Reporting

Capital Planning

Risk Assessment

Work Management

Inventory/ProcurementTracking attributes: date created, created by, last edit, etc.

Physical attributes: make, model, manufacturer, capacity

Financial attributes: install date, historic / replacement cost, effective useful life, remaining useful life

Asset management attributes: probability and consequence of failure

Core AM Tool - CMMS

Typical Asset Hierarchy

1 Organization

2 Network

3 Utility Type

4 Facility

5 Process

6 Group

7 Asset

8 Asset-Child

• Focus on Core Functions 1st:

• Asset Inventory Completeness

• Work Order Management

• Risk Assessment

• Cost Accounting

• Phase In Supporting Functions:

• Parts Management

• Purchasing

• Fleet Management

• Key Technical Elements:

• GIS Integration

• Reporting

Inventory Management for “fixed” assets: treatment plants, pump stations, buildings, etc.

WTP Asset Attribute Data

• Approx. 2,500 asset listings

• LIMITED HIERARCHY

• Developed asset relationships:• Location• Discipline• Asset type

• Created hierarchy• Building #• Building Name• Process• Group• Asset

Streamlined Data Collection, Analysis, and Information Sharing

• ESRI Survey-123

• Review, reconcile, and add CMMS asset data

• Physical condition assessment

• Data compilation

• Ability to embed and link data, photos, as-builts

360o Photos Can Easily Link to Inspection Forms

Wet Well Inspection, February 2017

Risk Assessment

Probabilityof Failure

Consequence of Failure

Risk Score

• Mortality• Level of Service• Capacity• Efficiency

Failure Mode

• Economic• Social/Safety• Environmental

Consequences

Redundancy Factor

Consequence

Condition Assessment

• How likely is the asset to fail?

• Two considerations:• Physical Condition: current state of

repair and operation

• Performance Condition: current and future requirements

• Each is scored separately

Condition = (Physical x 0.7) + (Performance x 0.3)

Evaluates the Probability of Failure

Physical Condition ScoringWhat Does 1 to 5 Mean?

Electrical/Instrumentation 1 2 3 4 5

Heat/Odor No abnormal heat or odor evident.Mild odor and/or mild heat is evident. No damage is evident

that has been caused by excessive heat.

Odor and heat are evident and should be addressed in the

near term. Asset is still functional but showing signs of wear

due to the excessive heat.

Significant wear from heat is evident and the asset should be

replaced or is in need of a major overhaul.

Such excessive heat or odor that asset should not be in

operation.

External Corrosion No corrosion present. Less than 10% corrosion present 10 - 25% corrosion present 50 - 75% corrosion present Over 75% corrosion present.

NameplatesNameplates are legible and in "like new"

condition.Nameplates are legible but showing signs of wear.

Nameplate data is fading/difficult to read. Nameplate

beginning to detach from asset.

Majority of nameplate data is missing and/or nameplate is

barely secure to asset. Consider replacing nameplate.

Nameplates are missing or are illegible. Nameplate should be

replaced.

WiringWiring and/or wire labeling meets all

standards and shows no wear.

Wiring and/or wire labeling is starting to show signs of wear,

however no performance deterioration is present.

Wiring and/or wire labeling is showing signs of wear which

indicate reduced performance may be possible.

Wiring and/or labeling is showing signicant deterioration

which should be replaced or overhauled.

Such excessive wire deterioration that the asset should not be

placed in operation.

Conduits and Support

Brackets

Conduits and support brackets meet all

standards and are well maintained. No

wear is evident.

Typical wear is evident but does not allow fluid to penetrate.

Maintenance is required to repair damage to conduit and/or

supports which could allow fluid to penetrate and contact

wiring.

Conduit and/or brackets show signifcant wear/deterioration,

should be replaced or overhauled.

Conduit needs immediate replacement and asset should be

locked out until replacement has occurred.

Indicator LightsIndicator lights are fully functioning, bright,

and visible.

Indicator lights are fully functioning, however showing signs of

wear/dimming.

Indicator lights are functioning, however, full attention must

be given to distinguish what they are indicating.

Indicator lights are barely functioning. Cannot tell if on or off,

or flickering frequently.Indicator lights are not functioning.

Push ButtonsPush Buttons are fully functioning, bright,

and visible.

Push Buttons are fully functioning, however showing signs of

wear/labels wearing off.Push Buttons are sticking and in need of maintenance.

Push buttons are barely functioning. Needs to be replaced or

overhauled.

Push buttons are not functioning. Equipment should not be

operational.

Doors/Seals No damage to doors/seals. No damage to doors/seals. Seals are showing signs of wear. No damage to doors.Doors no longer shut entirely and seals are missing

pieces/deteriorating.

Seals are deteriorated and/or doors have extensive damage so

that equipment is no longer protected. Doors/seals should be

replaced immediately.

Vibration/Noise No abnormal noise/vibration is evident. Abnormal noise is present, no vibration is present. Both abnormal noise and vibration is apparent. Non-structural damage due to abnormal vibration is present. Structual damage due to abnormal vibration is present.

Fluid/Water Damage No fluid and/or water damage is evident.Past moisture accumulation is evident but no rehabilitation is

required. Moisture problem is not reoccuring.

Moisture accumulation is evident and continuous. Increased

maintenance is required to maintain typical operation.Immediate replacement is needed due to water damage.

Wiring is submerged and should be locked out until wiring is

replaced and leak source repaired.

Coatings No coating damage/deterioration present. Less than 10% coating/deterioration present 10 - 50% coating/deterioration present 50 - 75% coating/deterioration present Over 75% coating/deterioration present

Physical Damage No physical damage to equipment. Less than 10% physical damage present 10 - 50% physical damage present 50 - 75% physical damage present Over 75% physical damage present.

Display ScreenDisplay screen is fully operational and no

damage is evident.Less than 10% damage is evident to screen. 10 - 50% of damage is evident to screen. 50 - 75% of damage evident to screen. Consider replacing.

Screen is no longer functional and needs to be replaced. Over

75% damage evident to screen.

Pests/Critters No signs of pests or damage. Signs of pests, but no damage. Signs of pests, minor damage.Pests are present with extensive damage. May need pest

control.

Pest infestation; requires immediate pest control and

replacement of asset.

Performance Condition AssessmentScoring Guidelines

Consequence of FailureScoring Guidelines

CoF = ∑(Safety x 0.25) + (LoS x 0.30) + (Reg x 0.30) +

(O&M x 0.15 )

• Sample Criteria:• Safety impacts

• Level of Service impacts

• Regulatory compliance impacts

• O&M (Cost) impacts

• One set of criteria for all vertical (facility) assets

Outcomes

Risk Assessment ResultsAsset Risk Rating Matrix

Determined Asset Replacement Costs

1. Manufacturer/vendor research

2. RS Means/CostWorks

3. Recent bid tabulations

CIP Project Cost Development

1 2

3 4

Review High Risk Assets

Review Assets Near EUL

Develop Bundled Projects

Align with Existing CIP

• Assess best risk reduction strategy

• Determine capital maintenance, or business strategy

• Determine if additional testing or analysis is required

• Determine if run to failure is an option

• Bundle projects into logical groups

• Review medium risk assets to see if they should be included

• Evaluate and prioritize with existing capital projects

• Review R&R growth, and enhancement balance

Effective Useful Life (EUL) and Remaining Useful Life (RUL)

• EUL: the period over which an asset is expected to be useful for its intended purpose from installment

• EUL is related to:• Maintenance Requirements

• Original Construction Techniques

• Materials of Construction

• RUL: the number of remaining years that an asset will be able to function/perform its intended purpose

• RUL = EUL – age of the asset

Asset Risk Scoring and CIP DevelopmentEXAMPLE: FLA MXR2B MB – FLASH MIXER #2B SE CORNER

Physical Condition = 3.0

Performance Condition = 1.1

PoF Score = (3.0 x 0.7) + (1.1 x 0.3) = 2.43

CoF Score = 2.20

Risk Score = PoF x CoF = 2.43 x 2.20 = 5.35

• Install Year = 1993

• EUL = 20 yrs

• Modified EUL = 20 x 140% = 28 yrs

• Replacement Recommended

in FY 2021 = $58,000

Final Modified EUL Projections

0

50

100

150

200

250

300

350

400N

um

be

r o

f A

sse

ts

Year

Number of Assets Reaching EUL

Long-Term WTP CIP Projections

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

Co

st

Year

Annual R&R Cost Projection

Total = $334M

Financial Forecasting / Prioritization

• Long-term CIP projection

• Annual prioritization based on infrastructure risk

• Budget scenario flexibility

CIP Development

Risk Assessment

Project Scoping

and Bundling

Asset Prioritization through Risk Analysis

1

Project Prioritization

2

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

$70,000,000

Co

st

Year

Annual R&R Cost Projection

Total = $334M

Risk Assessment Sustainability

• Classroom risk assessment training

• Field training with mobile devices

• Slight modification of definitions and assessment forms

Risk Assessment Data Integration

• Integrate risk assessment information into City’s Hansen CMMS

• O&M staff training

• Integrate SQL Server database once new CMMS/EAM is implemented

User revises asset condition using

ESRI tools

Condition Assessment dB

updated with latest CA data

ArcGIS online:stores every data record submitted

SQL server dB:Host historical condition

assessment data

CMMS:Asset inventory

Next Steps

Programmatic AM Approach

Primary Objective: Secondary Objectives:

New CMMS/EAM Implementation

Hardware/Software

Configuration

Data Migration

Strategy & TestingUser Testing Staff Training Module Integration

Process Flow

Development

Criteria

Acc

ela

Ag

ile

Ass

ets

Ca

rte

gra

ph

Cit

yW

ork

s

En

erg

ov

IBM

Ma

xim

o

Info

r E

AM

Info

r H

an

sen

Luci

ty (

GB

A)

Mu

nis

Ne

xGe

n

Pu

bW

ork

s

Uti

lity

Clo

ud

Ranking 8 13 6 4 9 1 5 2 3 11 10 12 7

F1: Work Order Management 4 3 3 4 3 5 4 4 4 3 3 4 4

F2: Asset Management 3 3 3 3 2 4 4 4 4 2 4 2 4

F3: GIS 4 3 4 4 4 5 3 5 4 4 4 4 2

F5: Inventory Management 4 2 5 5 4 5 4 5 5 0 4 5 1

F6: Financial Planning 0 0 3 3 4 3 3 3 3 5 3 0 3

T1: Company Services 4 2 5 5 4 5 5 5 5 4 3 3 4

T2: Interface 3 3 4 4 3 5 4 4 4 2 2 3 4

T3: Other 4 3 4 3 4 5 5 4 3 4 4 3 5

O&M Optimization

Adopt Key Reliability Centered

Maintenance Principles:

• PdM – Predictive

• PM – Preventive

• CM – Corrective

Benefits:

• Better estimate of EUL

• Avoid critical failures

• Optimize inventory and

resources

Performance Management and Business Analytics

• Service Level monitoring

• O&M Program effectiveness

• Capital Improvement Program execution

• Performance benchmarking

• Process status and improvement monitoring

Thank You!

Matt Manchisi, PE, PMPHazen and SawyerTel: (215) 592-4524Email: mmanchisi@hazenandsawyer.com