1 Airport Asset Management ACRP 1-16 Update David Hein, P. Eng., Principal EngineerVice-President, Transportation
2 Outline Background to the project What is Holistic Asset Management? Main Findings of the ResearchGetting StartedPrimer HighlightsGuidebook HighlightsConclusions
3 Project Team GHD Consulting Inc. TransSolutions LLC Principal Investigator:Larissa JamesShivprakash IyerCrystal McNeelyWayne FranciscoDuncan RoseSophie DenfordKeith BrownChristian RobertsRex HarlandColin JamesScott SellersTransSolutions LLCGloria BenderRex RoeApplied Research Associates Inc.David HeinAllen ParraLawrence Smith PE
4 ACRP 01-16 Project Objectives Primer for executive-level decision makers at airports of all sizesOverview of an asset and infrastructure management programComponentsBenefits and costsGuidebookInstruction in the development and implementation of an asset and infrastructure management programCaptures best management practicesProvides guidance in developing and incorporating asset and infrastructure management programs at airports of all sizesIn 2010 TRB embarked on a research project to investigate the current use of holistic asset management approaches within airports. The purpose of the research was to identify whether there are opportunities for airports to better optimize the management of infrastructure and assets, using asset management practices that have been adopted in some industry sectors throughout the past decade.The objective of the project was to develop a primer and a guidebook on asset and infrastructure management for airports. The primer was to be directed at executive level decision makers to provide an overview of what an asset and infrastructure management program is, and to describe its various components, benefits and costs.The intention of the guidebook is to provide instruction in the development and implementation of an asset and infrastructure management program, incorporating best management practices, and providing guidelines that can be utilized by airports of all sizes.
5 ACRP 01-16 Panellists Chair Ms. Karen Scott, P.E. Deputy Executive Director - Planning & EngineeringLouisville Regional Airport AuthorityMembersMs. Carol M. F. DavisVice President, Asset ManagementDFW International Airport/Asset ManagementMr. Josh Francosky, AAESenior Airport PlannerHartsfield-Jackson Atlanta International AirportMr. Royce HoldenIT DirectorAsheville Regional AirportMs. Joyce K. JohnsonPresidentCAD Concepts, Inc.Ms. Therese "Teri" Norcross, CPAFinance ManagerMissoula County Airport AuthorityFAA LiaisonMr. Kevin C. WillisAirport Compliance OfficerFederal Aviation AdministrationFHWA LiaisonMr. J. B. "Butch" Wlaschin, P.E.Director, Office of Asset ManagementFederal Highway AdministrationOther LiaisonMr. Matthew J. GriffinManager Policy and RegulationAirports Council International - North AmericaTRB LiaisonMr. Thomas PalmerleeAssociate Division DirectorTransportation Research BoardACRP StaffMs. Marci A. Greenberger, AAESenior Program OfficerAirport Cooperative Research ProgramMs. Tiana M. BarnesSenior Program Assistant
6 Key Airport Participants Long Survey ParticipantsMiami InternationalCorpus Christi InternationalToronto Pearson InternationalCincinnati/Northern Kentucky Int.Churchill ManitobaJackson MunicipalMinneapolis/St. Paul InternationalSacramento InternationalFresno Yosemite InternationalHartsfield-Jackson Atlanta InternationalChicago O’Hare InternationalDallas/Fort Worth InternationalReno-Tahoe InternationalMcCarran InternationalBangor InternationalGreenville Spartanburg InternationalPalm Springs InternationalJacksonville InternationalOakland InternationalCharlottetownMemphis InternationalSeattle Tacoma InternationalVancouver InternationalWinnipeg Airports AuthoritySpringfield Branson NationalSalt Lake City InternationalLouisville InternationalLouis Armstrong New Orleans Int.AddisonSan Francisco InternationalTallahassee RegionalWashington Dulles InternationalNashville InternationalGatwick, UKShort Survey ParticipantsLarge HubArlington MunicipalBaltimore Washington InternationalDenver InternationalDetroit MetroGeorge Bush IntercontinentalMinneapolis/ St. Paul InternationalMedium HubAustin Bergstrom InternationalCincinnati/Northern KentuckyColorado Springs MunicipalGeneral Mitchell InternationalLambert St. Louis InternationalManchester Boston RegionalSouth West FL. InternationalAlbuquerque InternationalNon-HubGrand Canyon National ParkMetropolitan Knoxville Airport AuthorityMissoula InternationalPittsburgh InternationalSaint John Airport CanadaSmall HubSan Diego InternationalAtlantic City InternationalBaton Rouge InternationalDes Moines InternationalGerald Ford InternationalHuntsville InternationalLong Island MacarthurPreston Smith InternationalTucson InternationalTulsa InternationalValley InternationalWichita Mid-ContinentSite VisitsToronto Pearson International AirportGatwick LondonBrisbane Airport CorporationAucklandCharlotte Douglas InternationalConference CallsPort Authority of NY and NJPort of SeattleSarasota InternationalCincinnati InternationalA total of 72 airports participated in the research effort, including five outside the United States, and 67 within the United States.The research included the use of a survey to identify practices amongst a group of 156 survey participants. A short survey of six questions and a longer, more in depth survey of 35 participants was used to identify common approaches amongst airports of all sizes.A selection of airports were identified for site visits, and for conference calls. Their selection was based on how survey questions were answered in the longer survey, and the literature search results.
7 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 PartThe understanding of what asset management is, is beginning to converge across industries from maintenance management of assets through a computerized maintenance management system, to a holistic approach that considers how the organization works to deliver strategic plan objectives. It considers organization function, staff competencies, efficiency and effectiveness of processes and practices for data capture, analysis, and decision making, and execution and optimization of the management of all phases of the asset lifecycle, from project initiation, design, through construction, commissioning, operate and maintain through renewal or disposal.The definition for asset management shown here is that used by the British Standards Institute Publicly Available Specification PAS 55.This definition formed the basis for the ACRP research, and for the development of the Primer and Guidebook.
8 Main Findings of the Research An holistic approach to asset management helps infrastructure managers to:Do more with lessIdentify and manage risks to the businessMake better investment decisionsExtend asset life, reduce downtime, achieve better control over performanceAlign decision makers to a common purposeRespond more easily to changes in the regulatory and commercial environmentExamples:15% increase in pavement lifeRoof condition maintained with 30% reduction in budgetAviation 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”The literature search of asset management applications in the airport and other sectors, and site visit interviews with participating airports showed a range of benefits.Benefits directly related to lifecycle cost and level of serviceBenefits associated with staff productivityAbility to achieve more with less by focusing maintenance on a risk and performance basis, and capital renewal timingMany of the greatest benefits of Asset Management are not easily quantified, for example, the CEO of Brisbane Airport, Australia stated that “One of the greatest benefits of asset management has been the ability to provide information to the Board on infrastructure capabilities and future needs – this type of knowledge is invaluable and is essential for making the best, justified investment decisions.”At the Seattle-Tacoma International Airport, the Aviation Planning staff see asset management as a source of competitive advantage and critical to the long term stewardship of airport infrastructure.In addition to the less quantitative benefits, significant benefits in the extension of asset life and ability to cut costs have been documented, particularly for pavements.
9 Available StandardsNo current standard for holistic infrastructure management in the USISO series of standards currently under developmentUsing the British Standards Institute Publicly Available Specification PAS 55 as a basisDue for completion by end of 2013Recognized guidebooks for infrastructure asset managementInternational Infrastructure Management Manual:Institute of Public Works Engineering, Australia (IPWEA)National Asset Management Steering Group, New Zealand (NAMS)The US does not have a single standard for holistic asset management.In the 1980’s utilities in Australia, New Zealand and the United Kingdom began developing tools and approaches to be able to forecast future renewal, growth, operations and maintenance to plan for future funding needs.In the 1990’s utilities began restructuring their organizations along the lines of asset owners, managers, and service delivery. They established strategic planning functions for infrastructure investment, service delivery functions, and service level agreements with service providers. Asset Management process and practice maturity/gap assessment and auditing tools emerged during this period. The United States electricity began reforms in the way their infrastructure was managed during this period.In the 2000’s, Vice President and Director of Asset Management roles begin to appear in the US electricity industry and elsewhere. Integration of Computerized Maintenance Management System, Geographical Information System, and financial systems, emergence of Enterprise Resource Planning Systems, Enterprise Asset Management Systems. The International Infrastructure Management Manual was developed in the early 2000’s, and the British Standards Institute Publicly Available Specification for Asset Management PAS 55 was developed in the late 2000’sIn the 2010’s full cost of service transparency, customer stakeholder negotiation to establish price and service level trade-offs, and increased use of level of service, risk and cost optimization models emerged. Development of an ISO standard is underway.
10 The model for holistic asset management, on which the ISO series standards are based, shows coverage of 4 key concepts:Linkage between the full portfolio of asset systems and their life cycle asset strategies (operation, maintenance and capital decisions), and the requirements of the organizational strategic planThe monitoring of performance and condition, and continuous improvement relative to the asset strategies and the strategic planThe role of organizational values, and existence of current functional standards and required processesSupport from executive staff to facilitate support in the form of enablers such as information and decision support systems, vision and culture, and provision of corporate supports, such as human resources, procurement and risk management functionsThe asset management framework model fosters optimization through ongoing data and information analysis and continuous improvement processes.
11 Asset Management Enablers Review infrastructure management to indentify poor performers related to best practicesSupport asset management visionProvide centralized leadership for AM Improvement PlanAssign a Champion for AM Implementation ProgramThe US does not have a single standard for holistic asset management.In the 1980’s utilities in Australia, New Zealand and the United Kingdom began developing tools and approaches to be able to forecast future renewal, growth, operations and maintenance to plan for future funding needs.In the 1990’s utilities began restructuring their organizations along the lines of asset owners, managers, and service delivery. They established strategic planning functions for infrastructure investment, service delivery functions, and service level agreements with service providers. Asset Management process and practice maturity/gap assessment and auditing tools emerged during this period. The United States electricity began reforms in the way their infrastructure was managed during this period.In the 2000’s, Vice President and Director of Asset Management roles begin to appear in the US electricity industry and elsewhere. Integration of Computerized Maintenance Management System, Geographical Information System, and financial systems, emergence of Enterprise Resource Planning Systems, Enterprise Asset Management Systems. The International Infrastructure Management Manual was developed in the early 2000’s, and the British Standards Institute Publicly Available Specification for Asset Management PAS 55 was developed in the late 2000’sIn the 2010’s full cost of service transparency, customer stakeholder negotiation to establish price and service level trade-offs, and increased use of level of service, risk and cost optimization models emerged. Development of an ISO standard is underway.
12 What Asset Management could mean to you? CEO and BoardBetter understanding of future needs to service customers competitivelyBudget and FinanceReduce unforeseen post-budget capital needsProvide 10 year and beyond forecast of capital, operations, maintenance needsPrice forecasts to address changing infrastructure investment needsPlanning ManagerPlanning requirements for infrastructure and assets included in airport asset management plansEngineering ManagerGreater lead time on project work load, processes for continuous improvement in design and construction standards, improved engineering records, data and knowledge managementOperations ManagerSupport for and focus on achieving operating efficiency and effectiveness, and service level outcomesMaintenance ManagerIncreased support for improved maintenance processes and practicesEnvironmental ManagerAwareness of the environmental consequences of infrastructure failures and ability to pre-plan mitigationsInformation TechnologyGreater awareness and understanding of the specific system functionalities needed to support the businessThe benefits of holistic asset management vary from one airport or organization to the next, depending on the level of asset management being practiced and executive support.A key benefit identified by airport staff in organizations where asset management practices have been adopted is that airports have been able to achieve better value for money. Some of this is accredited to the better focus on common objectives, better executive decision making through the availability of asset investment forecasts, and to improved maintenance practices.Regardless of your position in the organization, there will be subtle changes to the performance of your role. Some of these may be due to a closer working relationship with other airport functions, for example, maintenance managers participating in an Asset Management Steering Committee to ensure maintenance input to investment decisions, or with design to ensure that maintainability is addressed.Since asset management planning is often a new function, the Engineering Manager role, for example, may be modified to include asset management planning for asset groups, such as airfield lighting, pavements, baggage handling, or for people moving equipment.
13 Model Fit with Airport Planning Approaches ACRP Report 20, Strategic Planning in the Airport Industry, describes the interrelationships between planning efforts in this diagram.The traditional view of airport strategic planning is similar to the PAS 55 model for asset management, but it omits a focus on the planning for infrastructure.Asset Management Planning is concerned with ensuring that the infrastructure and assets of the airport support the airport strategic plan. The asset management planning process takes outputs of existing planning processes, such as the master plan, business plan, risk management plan, land use plan, to determine the best infrastructure and asset management solutions.For many airports and utility organizations, a corporate group is often formed to manage the Asset Management Planning function.
14 Asset Management Governance Do you know the required service function of each asset and how the asset is performing in that context?Do you know what assets you have and their condition?Are you actively managing risk?Do you have documented operation, maintenance and capital investment plans?Are you balancing business risk with long-term funding and management improvement strategies?The US does not have a single standard for holistic asset management.In the 1980’s utilities in Australia, New Zealand and the United Kingdom began developing tools and approaches to be able to forecast future renewal, growth, operations and maintenance to plan for future funding needs.In the 1990’s utilities began restructuring their organizations along the lines of asset owners, managers, and service delivery. They established strategic planning functions for infrastructure investment, service delivery functions, and service level agreements with service providers. Asset Management process and practice maturity/gap assessment and auditing tools emerged during this period. The United States electricity began reforms in the way their infrastructure was managed during this period.In the 2000’s, Vice President and Director of Asset Management roles begin to appear in the US electricity industry and elsewhere. Integration of Computerized Maintenance Management System, Geographical Information System, and financial systems, emergence of Enterprise Resource Planning Systems, Enterprise Asset Management Systems. The International Infrastructure Management Manual was developed in the early 2000’s, and the British Standards Institute Publicly Available Specification for Asset Management PAS 55 was developed in the late 2000’sIn the 2010’s full cost of service transparency, customer stakeholder negotiation to establish price and service level trade-offs, and increased use of level of service, risk and cost optimization models emerged. Development of an ISO standard is underway.
15 Governance Structures 30% of airports surveyed indicated that they have an executive position with responsibility for asset management functions.Implementation of an asset management framework usually requires change, and the ability to manage ongoing continuous improvement.The International Infrastructure Management Manual recommends the use of a Corporate Asset Management Steering Committee to provide guidance and oversight to the implementation of an asset management policy across all asset groups, and to coordinate asset management improvement activities and investment decision making.A common model is to assign an asset management coordinator, custodian or manager for each of the asset groups such as facilities, civil infrastructure, or airfield. This position is responsible for developing asset strategies and asset management plans, and also participates on a corporate steering committee.Some benefits from this approach have included a stronger voice for maintenance and operations staff in investment decisions, and better understanding of asset capabilities by engineering and operations, as well as the alignment of all staff towards a common purpose driven by the Corporate Asset Management Steering Committee.For small airports, a single asset manager often suffices, and this role can often be completed by, or managed by, a current maintenance or engineering manager. An existing capital planning committee can also fulfil the role of an Asset Management Steering Committee.
16 Best Management Practices – Asset Management Planning AMPLandside and Airside Facility and Systems AMPsAsset Strategies– MMI (Maintenance Managed Item) LevelLevels of ServiceBaggage Handling SystemPassenger Boarding BridgeBest management practices for airport asset management planning use a hierarchical approach whereby an airport wide asset management plan is built by determining the asset strategies for assets based on the performance or levels of service requirements determined at the airport executive level, for the various services.For example, an airport sets its level of service for passenger boarding bridges, and baggage handling equipment both to be 100% available during operating hours, and for the baggage handling system, process 44 bags per minute, and for the passenger boarding bridge, service Boeing to Embraer E145 aircraft.In developing the asset management plans for the baggage handling system and the passenger boarding bridge, asset strategies will be determined for all assets, such as conveyors and the lift columns on the passenger boarding bridge. The passenger boarding bridge may require replacement and upgrade to meet the aircraft servicing needs, which may result in a capital expense, as well as life cycle costs for operations and maintenance, the baggage handling system may need a conveyor replacement in 2 years time, and ongoing maintenance operating funds, in order to meet the desired levels of service.The Airport AMP will summarize all the landside and airside facility and systems investment needs to meet levels of service goals to customers and stakeholders. Prioritization of capital and maintenance investments are undertaken within the Airport AMP development process, ultimately simplifying the process of budget cuts if required, and of reporting impacts of changes in investment plans due to unforeseen circumstances.ConveyorLift Column
17 “10 Step Process” to Asset Management What is the process for developing an asset management plan?The International Infrastructure Management Manual and the US EPA use a 10 step process to develop an Asset Management Plan. This process can be applied to all assets.The 10 step process answers 5 core questions:What is the current state of my assets?What is my required level of service?Which assets are critical to sustained performance?What are my best O&M and CIP investment strategies?What is my best long-term funding strategy?The 10 step process takes the user through a systematic approach to understand the current performance and capability of the assets in question, the risk exposures, and the identification of the best maintenance, operations and capital investments needed to meet level of service, risk , and cost outcomes.This 10 step process is a key component of the ACRP Asset and Infrastructure Management for Airports Guidebook section on developing asset management plans for airport infrastructure.Source: US EPA Asset Management Training
18 Asset Management Systems Integration between financial and technical data and informationDecision support tools to analyse asset data and information for optimized investment decision making62% of survey respondents indicated that they use some form of computerized maintenance management system, and 40% are using decision support systems to assist with producing business cases for capital investment, and for prioritizing airport investments across asset groups.The asset management planning process is heavily data driven. The final confidence that we can have in the plan, is highly dependent on the quality of the data and information we have on the assets.Robust processes for capturing asset information – capturing asset descriptions and basic financial and technical information are essential as is the configuration of the maintenance management system to allow capture of criticality ratings, condition values and performance standards.Procedures and tools for initiating projects and prioritizing them across the asset groups enables the “roll up” of investment needs into a single Asset Management Plan for inclusion in the Capital Improvement Program, and Operating Budgets.
19 Getting startedACRP Primer – The “what” and “why” for Executive ManagementOverview of an asset and infrastructure management programComponentsBenefits and costsACRP Guidebook – The “how” for ImplementersOverview of how to implement a framework, develop and implement Asset Management PlansUndertake continuous improvement reviews
20 Primer – Table of Contents Why Asset Management for Airports?What can 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 ObservationsThe Primer is directed at executive decision makers, and is designed to communicate what asset management is, why we want to do it, and what the executive’s role is in enabling such changes.The introduction to asset management introduces the holistic model discussed earlier in this presentation.The primer then guides the reader through the establishment of the fundamentals of a governance system – the development of a corporate policy for asset management, how asset management objectives are set and the role of strategies and plans in realising those objectives.Asset Management Enablers refer to the corporate organizational support and change leadership needs. For example, information systems may required upgrading, and change leadership will be required to install any new processes, practices and procedures. Additional staff may be required to implement additional maintenance or capital renewal recommended by an Asset Management Plan. Or new skill sets may be required to undertake the engineering economics analysis needed to prioritize expenditures.Pulling it all together to implement an asset management framework discusses how to get started by using an asset management assessment and implementation plan.
21 Primer Highlights 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 ObservationsUndertake an asset management maturity/gap assessment to prioritize an implementation roadmap:Series 1 = Your AssessmentSeries 2 = Top 10 % of Airports in the USSeries 3 = Best Appropriate Practice
22 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 ImprovementManagement ReviewThe Guidebook is directed at implementers and provides step by step guidance on implementing an asset management framework, including the typical contents of a corporate asset management policy and the approach that other airports have used to develop such a policy.The approach for establishing asset management objectives as part of the strategic planning process is described, and a comprehensive approach for developing asset strategies and plans takes the reader through an example for a Passenger Boarding Bridge.The Guidebook includes information on the best management practices and functionalities required for asset management information support systems, and the various lifecycle management processes needed to efficiently and effectively implement asset management plans for best results.Finally, the Guidebook walks through the concepts of performance assessment and continuous improvement to describe how asset management objectives and asset management plan updates address performance gaps and management reviews of strategic objectives and priorities.The following slides illustrate a selection of the types of guidelines included in the Guidebook, as well as example outputs of a typical asset management planning process, in this case, for a Passenger Boarding Bridge.
23 Guidebook HighlightsSmall Municipal Airport Asset Management Plan (Excerpt)
29 Example 10 Step Process (Boarding Bridge) Develop asset registryAssess Performance and Failure ModesLevel of service failureEconomic efficiency failurePhysical mortalityCapacityDetermine Residual LifeDetermine Life-Cycle and Replacement CostsSet Target Levels of ServiceDetermine Business Risk/CriticalityLoss of service impactPublic health and safety
30 Example 10 Step Process (Boarding Bridge) Determine Business Risk/Criticality (Continued)Loss of service impactPublic health and safetyAirport credibilityCost of failure (restoration cost)Resource and operational impactsLevel of service impactRegulatory violations, air/water/land contaminationOptimize Operations and Maintenance InvestmentOptimize Capital InvestmentDetermine Best Funding StrategyDocument the Asset Management Plan
31 Detailed 10 Step Analysis Example 10 Step Asset Management Plan development process: Example for a Passenger Boarding Bridge (PBB)The Guidebook steps the user through the 10 step process for developing an Asset Management Plan for a Passenger Boarding Bridge.A simple spreadsheet tool is used to illustrate how an asset management planning analysis can be undertaken, to identify future cashflows to maintain the passenger boarding bridge so that it can continue to provide the required level of service.The example here shows the asset hierarchy for the Passenger Boarding Bridge, and the associated fundamental life cycle information – installation year, condition, and expected useful life. The figure to the right shows the 20 year cash flow analysis for the Passenger Boarding Bridge once consideration has been given to asset management objectives such as risk exposure, levels of service, and cost optimization. The figure shows operating, preventive maintenance, and capital renewal cash flows, as well as the average annual investment requirement.
32 Guidebook HighlightsAlso includes a summary of best appropriate practices:Master PlanningProject Initiation and DeliveryNew Capital Asset Project DeliveryAsset CommissioningMaintenancePerformance MonitoringRenewal and Decommissioning PlanningInformation SystemsData and Knowledge RetentionOrganization and PeopleCommercial TacticsAsset Management Planning
33 For more information contact: David HeinLarissa James
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