1. Asset Management, not a Scary or Costly Concept
Prepared for:
West Virginia GIS Conference
May 9, 2012
Presented by:
Lou Garcia

2. First : What is Asset Management ? ?
Of various definitions, this is the one defined by and for the water and wastewater utility industry:
Managing infrastructure assets to minimize the total cost of owning and operating them, while continuously delivering the service levels customers desire, at an acceptable level of risk.
Managing Public Infrastructure Assets, AMSA, AMWA, WEF, AWWA, 2001

3. Minimize the Total Cost
Life-cycle costs
Construction and installation costs
Operating costs
Maintenance costs
Rehabilitation costs
Replacement costs
Decommission and salvage costs
Managing infrastructure assets to minimize the total cost of owning and operating them, while continuously delivering the service levels customers desire, at an acceptable level of risk.

4. Delivering the Service Levels that Customers Desire
Understanding customer expectations
Determining level of service
Establishing performance indicators
Measuring performance
Balancing the tradeoffs between levels of service and future investments
Communicating with the customers
Managing infrastructure assets to minimize the total cost of owning and operating them, while continuously delivering the service levels customers desire, at an acceptable level of risk.

5. At an Acceptable Level of Risk
Determining criticality of assets
Defining failure
Predicting likelihood of failure
Quantifying risk
Reducing risk based on cost implications
Prioritizing risk-reduction actions
Managing infrastructure assets to minimize the total cost of owning and operating them, while continuously delivering the service levels customers desire, at an acceptable level of risk.

6. Managing Assets has always been a part of managing a utility
But….
More often than not the focus has not been on minimizing life-cycle costs
Service levels have not been established
Risk has been a nebulous concept
Maintenance and R&R have been intuitive or politically driven and not fact based
Actions have been stand-alone
Methods have not been integrated
Information & data decentralized and unverified
Decisions based on perception rather than fact
Tools are basic or non-existent
Managing infrastructure assets to minimize the total cost of owning and operating them, while continuously delivering the service levels customers desire, at an acceptable level of risk.

7. GIS is a logical place to view, query, analyze and communicate Asset Management
Existing GIS is a perfect place to begin
Viewing capabilities unsurpassed
Ability to query data & display results on maps
Analysis tools unparalleled
Ability to communicate program via maps, desktops tools and internet

8. So why should Asset Management be important to you?
Good management practice & customer service
Aging infrastructure
Numerous demands of expenditures
Increasing maintenance, versus
Rehabilitation, versus
Replacement, versus
Regulatory, versus
Growth demands, versus
Security
Improved Bond Rating
GASB34

9. Asset Management provides a Strategic and Knowledge Based Approach for management

10. Asset Management does NOT have to be Complicated & Scary!
Strategic and Knowledge-Based Approach Allows a Utility to Begin Anywhere
Entire system or individual assets
One or more geographic areas
Liner or vertical assets
One or more facilities
Portion or several portions of the distribution or collection system
And with whatever information and data is available
Extrapolate and project with statistical models
More information & data improved decision-making

11. Asset Management – are you really ready
Asset Management – are you really ready? Some key questions to consider:
What does Asset Management really mean?
Why can’t you simply install an Asset Management system?
Which best practices are appropriate?
How do you even get started?

12. How do you start?

13. Why not just buy an asset management tool and install it ?
Proper planning prevents ….
Don’t want to create stove pipes
No user buy in…
No one tool does it “all”
GIS
CMMS
SCADA
CMS
Billing
Inspections/Permits
CIP/Budgeting

14. Understand it
What will the role of asset management be for your organization
Define what asset management means for you
Create an achievable vision for your organization
Make the “change” as easy as possible
Start small, find a “champion”
Create and sustain interest
Make the tool’s introduced indispensable

15. Asset Management Basic Principles
Know what assets you own and what you are responsible for
Establish service levels considering customer expectations
Incorporate both systematic maintenance as well as planned capital investment
Prioritize and make decisions on risk, life-cycle costs and benefits
Integrate database and applications
Involve stakeholders

16. Know your assets! Data!
Indentify a single database to serve as the primary repository for asset information
Compile data from all sources (e.g. fixed asset inventory, GIS, PM records, etc.) and verify accuracy
Eventually the database should include asset attributes
Type of asset
Location
Manufacturer
Material
Size/capacity
Costs (original & replacement)
Installation/construction date
Service life (initial & remaining)
Condition grade
Performance grade

17. Copyright © 2012 Azteca Systems, Inc
Condition Assessment
Limited Budgets, Tailor Assessment Tools to Risk
Maintenance History (100% of assets)
Visual Inspections
Monitoring
Non-destructive Testing
Smoke/Dye
CCTV
Sonar/Radar
Digital Imagery
Destructive Testing
Material Analysis
Copyright © 2012 Azteca Systems, Inc
All rights reserved.

18. Combining a Bottom-Up with a Top-Down Approach provides increasingly Reliable Data Results
Refinement of projections from additional data
Asset by asset data
Time and resource intensive
Individual condition and performance assessments
Detailed asset attributes
Statistical
Based on existing data & targeted studies
Long-term projections
Easily manipulated
Relatively quick analysis of big picture
Top-Down
Bottom-Up
Refined Output

19. A Review of current AM practices will Identify Gaps that need Addressing; an example
Current utility Asset Management practices are compared against BEST Practices to determine gaps and target improvement efforts

20. Employ Risk Reduction : Cost Analysis to Identify Projects

21. Effective Decision Making for Managing Assets is all about Managing Risk
Risk = ƒ(severity x likelihood)
How severe are the consequences of asset failure?
Require a significant investment to repair or replace?
Impact the utility’s goals?
Create a health or safety issue?
Cause an environmental impact?
Result in a permit violation or other regulatory/legal concern?
Create negative publicity or undermine public confidence?
How likely is it for the asset to fail?
How is failure defined?
What are the asset’s attributes?
What is the condition?
How is it performing?
How will it meet future needs?

22. Effective Asset Management Includes both Systematic Maintenance & Capital Investment
Capital Renewal
Rehabilitation
Replacement
Maintenance
Planned
Reactive

23. Cityworks GIS-Centric Approach GeoDB Asset Repository
Cityworks Server
Cityworks Anywhere
Cityworks Desktop
GeoDB Asset Repository
Cityworks Storeroom
Cityworks Mobile
Cityworks Dashboard
Copyright © 2011 Azteca Systems, Inc
All rights reserved.

24. Enterprise Solution! Cityworks Desktop Cityworks Desktop
Cityworks® - Cross Compatibility Assurance
Cityworks Desktop
Cityworks Desktop
Cityworks Anywhere
Cityworks Anywhere
Cityworks Permitting
Cityworks Designer
Cityworks Designer
Cityworks Server
Cityworks Server
Cityworks is a true Enterprise solution. All our products are cross-compatible, working on the same platform, accessing the same database and workflow schema.
Centralized Work Activity Configuration and Management
Copyright © 2011 Azteca Systems, Inc
All rights reserved.

25. Cityworks – Open Standards Non-proprietary, Interoperable Asset Database
Address data
Work activity data
GIS-Centric checklist
Geodatabase is the asset data
Non-redundant asset database
User definable asset data model
Non-proprietary asset database
Interoperable asset database
Inherently spatial data structures
Created and maintained by GIS tools
Copyright © 2011 Azteca Systems, Inc
All rights reserved.

26. Copyright © 2012 Azteca Systems, Inc
Cityworks supports asset-based, address-based, & general work activities
General
Work order
Address-based
work order
Because Cityworks is GIS centric, that doesn’t mean the only way you can use it is through the GIS. Here are the three basic work order types.
Asset-based
work order
Copyright © 2012 Azteca Systems, Inc
All rights reserved.

27. Permits, Licensing, and Land Management
(PLL)
Plan Review Application or any other type Application Process
Building Construction Permits, Pool Permits, NPDES or any other type Permit Process
Applications
Permits
Case
Object
Enforcement
Code
High Weeds and Grass, Trash in Yard or any other type Code Enforcement Process
Alcohol License, Business License or any other type License Process
Licenses
Copyright © 2012 Azteca Systems, Inc
All rights reserved.

28. Any GIS Database What is Cityworks PLL? Permits 2. Licenses 3. Land
(Permits, Licensing, and Land Management)
Buildings
Furniture
Permits
- Building
- Zoning
- Engineering
- Health
2. Licenses
- Business Licenses
- Contractor Licenses
- Animal Licenses
3. Land
- Community Development and Planning Activities
- Engineering Construction Processes
Code Enforcement Case Management
4. Streamlined tasks
- Plan Reviews
- Issuance
- Inspections
- Pre-Construction Meeting
- Public Hearings
- Notice of Violations
Fee Processing and Management
HVAC
Fleet
Street Lights
Streets
Parcels
Signs
Any GIS Database
Trees
Parks
WW Plants
Sewer Lines
Manholes
Pumps
Water mains
Hydrants
Gas Mains
Powerlines
Copyright © 2012 Azteca Systems, Inc
All rights reserved.

29. Questions? Lou Garcia EA Engineering, Science and Technology
Mobile phone = =