Report 69 Asset and Infrastructure Management for Airports June 2012.

Report 69Asset and Infrastructure Management for Airports

June 2012

Contents• Background to the project• What is Holistic Asset Management?• Main Findings of the Research• Getting Started• Primer Highlights• Guidebook Highlights• Conclusions

Researchers

GHD Consulting Inc.

Principal Investigator:Larissa James

Shivprakash IyerCrystal McNeely

Wayne FranciscoDuncan RoseSophie DenfordKeith BrownChristian RobertsRex HarlandColin JamesScott Sellers

Transsolutions LLC

Gloria Bender

Rex Roe

Applied Research Associates Inc

David Hein

Allen Parra

Lawrence Smith PE

Lawrence Smith

ACRP 01-16 Project Objectives

• Develop a Primer for executive-level decision makers at airports of all sizes–Overview of an asset and

infrastructure management program• Components• Benefits and costs

• Develop a Guidebook – Instruction in the development and

implementation of an asset and infrastructure management program• Captures best management practices• Provides guidance in developing and incorporating asset

and infrastructure management programs at airports of all sizes

ACRP 01-16 PanellistsChairMs. Karen Scott, P.E.Deputy Executive Director - Planning & EngineeringLouisville Regional Airport Authority

MembersMs. Carol M. F. DavisVice President, Asset ManagementDFW International Airport/Asset Management

Mr. Josh Francosky, AAESenior Airport PlannerHartsfield-Jackson Atlanta International Airport

Mr. Royce HoldenIT DirectorAsheville Regional Airport

Ms. Joyce K. JohnsonPresidentCAD Concepts, Inc.

Ms. Therese "Teri" Norcross, CPAFinance ManagerMissoula County Airport Authority

FAA LiaisonMr. Kevin C. WillisAirport Compliance OfficerFederal Aviation Administration

FHWA LiaisonMr. J. B. "Butch" Wlaschin, P.E.Director, Office of Asset ManagementFederal Highway Administration

Other LiaisonMr. Matthew J. GriffinManager Policy and RegulationAirports Council International - North America

TRB LiaisonMr. Thomas PalmerleeAssociate Division DirectorTransportation Research Board

ACRP StaffMs. Marci A. Greenberger, AAESenior Program OfficerTransportation Research BoardAirport Cooperative Research ProgramMs. Tiana M. BarnesSenior Program AssistantTransportation Research Board

Key Airport ParticipantsLong Survey ParticipantsMiami International AirportCorpus Christi International Airport Toronto Pearson International AirportCincinnati/Northern Kentucky Int. AirportChurchill Manitoba AirportJackson Municipal Airport Minneapolis/St. Paul International AirportSacramento International AirportFresno Yosemite International AirportHartsfield-Jackson Atlanta International Airport Chicago O’Hare International AirportDallas/Fort Worth International AirportReno-Tahoe International AirportMcCarran International AirportBangor International Airport Greenville Spartanburg International AirportPalm Springs International AirportJacksonville International AirportOakland International AirportCharlottetown AirportMemphis International AirportSeattle Tacoma International AirportVancouver International AirportWinnipeg Airports AuthoritySpringfield Branson National AirportSalt Lake City International AirportLouisville International AirportLouis Armstrong New Orleans Int. AirportAddison AirportSan Francisco International AirportTallahassee Regional AirportWashington Dulles International AirportNashville International AirportGatwick, UK

Short Survey Participants

Large HubAddison AirportArlington Municipal AirportBaltimore Washington International AirportChicago O’Hare International AirportDenver International AirportDetroit Metro AirportGeorge Bush Intercontinental AirportMinneapolis/ St. Paul International Airport

Medium HubAustin Bergstrom International AirportCincinnati/Northern KentuckyColorado Springs Municipal AirportGeneral Mitchell International AirportLambert St. Louis International AirportManchester Boston Regional AirportMemphis International AirportSacramento International AirportSouth West FL. International AirportVancouver International AirportAlbuquerque International Airport

Non-HubBangor International AirportGrand Canyon National Park AirportMetropolitan Knoxville Airport AuthorityMissoula International AirportPittsburgh International AirportSaint John Airport Canada

Small HubSan Diego International AirportAtlantic City International AirportBaton Rouge International AirportCorpus Christi International AirportDes Moines International AirportFresno Yosemite International AirportGerald Ford International AirportGreenville Spartanburg International AirportHuntsville International AirportLong Island Macarthur AirportPreston Smith International AirportTallahassee Regional AirportTucson International AirportTulsa International AirportValley International AirportWichita Mid-Continent Airport

Site VisitsDallas/Fort Worth International AirportMiami International AirportAddison AirportGreenville Spartanburg International AirportSacramento International AirportToronto Pearson International AirportBangor International AirportGatwick London AirportBrisbane Airport CorporationAuckland AirportCharlotte Douglas International

Conference CallsPort Authority of NY and NJPort of SeattleSarasota International AirportDenver International AirportCincinnati International Airport

What is Holistic Asset Management?

“Systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purposes of achieving its organizational strategic plan.”

An organizational strategic plan is defined as:

“ Overall long-term plan for the organization that is derived from, and embodies its vision, mission, values, business policies, stakeholder requirements, objectives and the management of its risks.”

Source: PAS 55 Part 1 2008

Main Findings of the Research

Aviation Planning, Seattle-Tacoma International Airport, “Asset Management is a planned and proactive strategy for optimizing the life of vital facilities. The business management practices are based on total cost of ownership for ongoing renewal, maintenance and operation. They are a source of competitive advantage and critical to the long term stewardship of airport infrastructure”

• An holistic approach to asset management helps infrastructure managers to:– Do more with less– Identify and manage risks to the business– Make better investment decisions– Extend asset life, reduce downtime, achieve

better control over performance– Align decision makers to a common purpose– Respond more easily to changes in the

regulatory and commercial environment

Examples:– 13.5% increase in pavement life– Pavement levels of service maintained with

30% reduction in budget

Standards

– No current standard for holistic infrastructure management in the US

– ISO 55000 series of standards currently under developmentUsing the British Standards Institute Publicly Available Specification PAS 55 as a basis

Due for completion by end of 2013

– Recognized guidebooks for infrastructure asset managementInternational Infrastructure Management Manual produced and published by

Institute of Public Works Engineering, Australia (IPWEA)

National Asset Management Steering Group, New Zealand (NAMS)

The model - Asset Management Framework

What Asset Management could mean to you?

CEO and Board Better understanding of future needs to service customers competitively

Budget and Finance Reduce unforeseen post-budget capital needsProvide 10 year and beyond forecast of capital, operations, maintenance needsPrice forecasts to address changing infrastructure investment needs

Planning Manager Planning requirements for infrastructure and assets included in airport asset management plans

Engineering Manager Greater lead time on project work load, processes for continuous improvement in design and construction standards, improved engineering records, data and knowledge management

Operations Manager Support for and focus on achieving operating efficiency and effectiveness, and service level outcomes

Maintenance Manager Increased support for improved maintenance processes and practices

Environmental Manager Awareness of the environmental consequences of infrastructure failures and ability to pre-plan mitigations

Information Technology Greater awareness and understanding of the specific system functionalities needed to support the business

How the model fits with current airport planning approaches

RISK IDENTIFICATION OPPORTUNITIES

AIRPORTS STRATEGIC PLAN

RISK MANAGEMENT

PLAN

MARKETING PLAN

BUSINESS PLAN MASTER PLAN LAND USE PLAN

INSURANCE AIR SERVICE CONTRACTS FACILITIES ACQUISITIONS

ASSET MANAGEMENT

PLAN

RESOURCE AND STAFFING PLAN

TRAINING AND DEVELOPMENT

PLAN

Business Finance

Planning and Development

Administration

Governance Structures

Best Management Practices – Asset Management Planning

Airport AMP

Landside and Airside Facility and Systems AMPs

Asset Strategies – MMI (Maintenance Managed Item) Level

Leve

ls o

f Ser

vice

Conveyor

Baggage Handling System

Passenger Boarding Bridge

Lift Column

“10 Step Process” to Asset Management

DevelopAsset

Registry

AssessPerformance,Failure Modes


DetermineResidual

Life

DetermineResidual

Life

DetermineLife Cycle &Replacement

Costs


Costs

Set TargetLevels of

Service (LOS)

Set TargetLevels of

Service (LOS)

DetermineBusiness Risk(“Criticality”)

OptimizeO&M

Investment

OptimizeO&M

Investment

OptimizeCapital

Investment

OptimizeCapital

Investment

DetermineFundingStrategy


Build AMPlan

Build AMPlan

2. What is my required level of service?

3. Which assets are critical to sustained performance?

4. What are my best O&M and CIP investment strategies?

5. What is my best long-term funding strategy?

1. What is the current state of my assets?

Source: US EPA Asset Management Training

Asset Management Systems• Integration between

financial and technical data and information

• Decision support tools to analyze asset data and information for optimized investment decision making

Work Orders

Preventative Maintenance

Inspections

Resource Labor

Tracking

Service Contract/Vendors

Maintenance of Assets

Rolling Stock

Facilities

Materials

Equipment

Asset Tracking

Inventory Receiving

Historical Data

Budget and Planning

Warehousing

Requisition

Purchasing

Asset Management Data

Hub

Apply data and business rules

using the airport data hub

After data and business rules are applied hand

off to financial management

information system

Financial Management

Information SystemClean Data

Business Rules

Data rules

Above systems update the data hub

To/From

Updates asset management information

system

In addition, applicable functional areas and the

divisions are updated

Getting started

• Report 69: Primer – The “what” and “why” for Executive Management

– Overview of an asset and infrastructure management programComponents

Benefits and costs

• Report 69: Guidebook – The “how” for Implementers

– Overview of how to implement a framework, develop and implement Asset Management Plans

– Undertake continuous improvement reviews

Primer – Table of Contents• Why Asset Management for Airports?• What can Asset Management do for you?• Introduction and Primer Overview• Introduction to Asset Management• Asset Management Policy• Asset Management Objectives, Strategies and Plans• Asset Management Enablers• Implementation of Asset Management Plans• Performance Assessment and Improvement • Management Review• Pulling it all Together: Implementing an Asset Management

Framework• Concluding Observations

Primer HighlightsUndertake an asset management maturity/gap assessment

to prioritize an implementation roadmap:Primer Table of Contents

What does Asset Management do for you?Introduction and Primer OverviewIntroduction to Asset ManagementAsset Management PolicyAsset Management Objectives, Strategies and PlansAsset Management EnablersImplementation of Asset Management PlansPerformance Assessment and ImprovementManagement ReviewPulling it all Together: Implementing an Asset Management FrameworkConcluding Observations

Series 1 = Your AssessmentSeries 2 = Top 10 % of Airports in the USSeries 3 = Best Appropriate Practice

Guidebook – Table of Contents

• Introduction and Guidebook Overview• Implementing an Asset Management Framework: Establishing

the Foundation• Asset Management Objectives• Asset Management Strategies and Plans• Airport Information and Data Systems• Implementation of Asset Management Plans: Lifecycle

Processes and Best Appropriate Practices• Performance Assessment and Improvement • Management Review

Guidebook Highlights10 Step Asset Management Plan development process:

Example for a Passenger Boarding Bridge (PBB)Guidebook Table of Contents

Introduction and Guidebook OverviewImplementing an Asset Management Framework: Establishing the FoundationAsset Management ObjectivesAsset Management Strategies and PlansAirport Information and Data SystemsImplementation of Asset Management Plans: Lifecycle Processes and Best Appropriate PracticesPerformance Assessment and Improvement Management Review

DevelopAsset

Registry



DetermineResidual

Life

DetermineResidual

Life


Costs


Costs

Set TargetLevels of

Service (LOS)

Set TargetLevels of

Service (LOS)

DetermineBusiness Risk(“Criticality”)

OptimizeO&M

Investment

OptimizeO&M

Investment

OptimizeCapital

Investment

OptimizeCapital

Investment



Build AMPlan

Build AMPlan

2. What is my required level of service?

3. Which assets are critical to sustained performance?

4. What are my best O&M and CIP investment strategies?

5. What is my best long-term funding strategy?

1. What is the current state of my assets?

Guidebook Highlights10 Step Asset Management Plan development process: Example for a Passenger Boarding Bridge (PBB)

What is the State of My Assets? What Funding Strategy?

Installed Date

Asset Class

Original Cost

Estimated Effective

Life

Condition Rating

Current Year 2011 Year $ Years 1 to 10Level 1 Level 2 Level 3 Level 4 Act or Est Tab A Act or Est Tab A

1 - Gate -11 Gate 1 PBB -111PC Air -1111 Air Hose 2010 2 1,275$ 5 2-1112 Condenser 2005 2 2,705$ 15 3-1113 Compressor 2005 3 1,445$ 15 3

-112 400 Hz Power -1121 Cord 2010 5 765$ 5 2 -1122 Plug 2008 5 595$ 3 2

-1123 Retractor/Cable Hoist 2005 5 765$ 15 5-113 Potable Water -1131 Cabinet 2005 7 595$ 15 7

-1132 Hose 2010 7 1,725$ 5 2-114 Interiors -1141 Wall covering 2005 7 340$ 7 6

-1142 Carpet 2008 7 442$ 3 7-1143 Hand rails 2005 7 765$ 15 3

-115 Rotunda -1151 Bearings 2005 3 595$ 15 8-1152 Curtain 2008 7 765$ 3 2-1153 Base Column 2005 3 9,000$ 15 2

-116 Pedestal 2005 7 595$ 15 7-117 Tunnel assembly -1171 Tunnel Assemblies 2005 7 85$ 7 7

-1172 Tunnel Roller Assemblies 2005 3 8,600$ 10 8-118 Wheel Bogie -1181 Assembly 2005 7 595$ 10 6

-1182 Wheel 2005 3 1,360$ 15 8-1183 Tire Pneumatic 2008 3 765$ 3 7-1184 Wheel Motor DC Drive 2010 4 595$ 5 6-1185 Wheel Motor AC Drive 2009 3 4,250$ 5 5-1186 Tire Solid 2005 3 6,800$ 10 6

-119 Lift Column -1191 Lift Column Motors 2005 4 5,100$ 15 6-1192 Lift Column Ball Screws 2005 4 850$ 15 6

-120 Cab Assembly 2005 7 595$ 25 6-121 Cab Curtain 2005 7 765$ 15 6-122 Cab Bumper 2005 7 595$ 15 7-123 Stairs 2005 7 595$ 15 6-124 Bag chute 2005 7 765$ 15 4-125 Use/power meter 2005 5 765$ 15 4

Asset Register and Hierarchy

$0

$50,000

$100,000

$150,000

$200,000

$250,000

2011

2013

2015

2017

2019

2021

2023

2025

2027

2029

Investment Profile - Passanger Boarding Bridge

Operations $

PM $

Capital $

Avg Annual $

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Capital $ 2,000$ 38,400$ 3,500$ 18,000$ 48,000$ 130,500$ -$ -$ -$ 50,800$

$294,617.85Avg Annual $ $77,180.89 $77,180.89 $77,180.89 $77,180.89 $77,180.89 $77,180.89 $77,180.89 $77,180.89 $77,180.89 $77,180.89

Annual Depreciation $ 6,079.01$ 6,079.01$ 6,079.01$ 6,079.01$ 6,079.01$ 6,079.01$ 6,079.01$ 6,079.01$ 6,079.01$ 6,079.01$ PM $ 32,450$ 32,450$ 32,450$ 32,450$ 32,450$ 32,450$ 32,450$ 32,450$ 32,450$ 32,450$

Operations $ 30,000$ 30,000$ 30,000$ 30,000$ 30,000$ 30,000$ 30,000$ 30,000$ 30,000$ 30,000$

THANK YOU

For more information contact:

Report 69 Principal Investigator:

Larissa James [email protected]

or

Crystal McNeely [email protected]

mailto:[email protected]

mailto:[email protected]

Report 69 Asset and Infrastructure Management for Airports June 2012.

Documents

Transcript of Report 69 Asset and Infrastructure Management for Airports June 2012.