Asset Management and Condition Assessment Best...
Transcript of Asset Management and Condition Assessment Best...
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Jeffrey Sanford 2/28/2013 Joseph Zalla Jeffrey Sanford February 1, 2013
Asset Management and Condition Assessment Best Practices
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Asset Management Definition Effective Asset Management is: An integrated set of processes to minimize the life-cycle costs of owning, operating and maintaining assets, at an acceptable level of risk, while continuously delivering established levels of service
Managing Public Infrastructure Assets to Minimize Costs and Maximize Performance AMSA, AMWA, AWWA, WEF 2002
Implementing Asset Management – A Practical Guide AMWA, NACWA, WEF 2007
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Balancing Act…….
RISK
Service Levels Low
Costs
Minimize the life-cycle costs of assets Continuously deliver established levels of
service At an acceptable level of risk
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Risk is quantified by the classic equation.
Risk = (consequence x likelihood)
How severe are the consequences of asset failure?
How likely is it for the asset to fail?
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Understanding the risk of asset failure provides…
The basis prioritizing capital investments for R&R
The basis for optimizing O&M
The basis for investing in condition assessments
A uniform and rigorous manner that results in defensible decisions
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Risk Based Approach Quantified by using the classic risk equation
Risk = (consequence x likelihood)
How severe are the consequences of asset failure?
How likely is it for the asset to fail?
• H, S implications • Financial impact • Regulatory compliance • Public confidence • Service delivery
Levels of Service
• Condition • Reliability • O&M Protocols • Performance
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Consequence by Level of Service Category Rio Rancho
LOS Category Wt. Negligible = 1 Low = 4 Moderate = 7 Severe = 10
Safety of public and employees 30% No injuries or adverse health
effects No lost-time injuries or
medical attention required Lost-time injury or
medical attention required Loss of life or widespread
outbreak of illness
Financial impact 15% Can be repaired within Utility budget (<$2,500)
Can be repaired between $2500 and $9,999
Can be repaired between $10,000 to $29,000.
Greater than $30,000. Sealed bids and City
Council approval required
Public confidence 10%
No social or economic impact on the community. No reactive
media coverage. Any media coverage is a result of proactive announcements by Utility. No
complaints.
Minor disruption (e.g., traffic, dust, noise,water pressure). No adverse media coverage. Some
complaints.
Substantial but short-term disruption. Adverse media
coverage due to public impact. Localized media
coverage.
Long-term impact. Area-wide disruption. Regional
media coverage.
Regulatory compliance 25% No State or local permit
violations . No SSO's Possible technical violation Probable enforcement
action, but fines or surcharge unlikely
Enforcement action with fines or surcharge
Service Delivery 20% No impact
Minor impact to process or out of service less than 24 hours. No SSO's or loss of
service
Major impact to process, out of service <24 hours. Potential SSO or loss of
service
Major impact to process, out of service >24 hours, outside services required,
SSO' or loss of service
Rio Rancho Consequence of Failure Matrix
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Likelihood by Category Rio Rancho Likelihood Category Wt Negligible = 1 Unlikely = 3 Possible = 5 Likely = 7 Very Likely = 10
Physical Condition 80%
Very good. Condition Grade 1. New or nearly
new. Only normal maintenance required.
Good. Condition Grade 2. Minor wear.
Fair. Condition Grade 3. Major wear impacting level
of service.
Poor. Condition Grade 4. Unable to meet level of
service life. Failure imminent.
Very poor. Grade 5. Requires complete
rehabilitation or replacement. Failed.
O&M Protocols (i.e., PMs, SOPs, JSAs)l 5%
Complete, up-to-date, written, easily accessible
and is being used.
Complete, written, up-to-date, being used but not
easily accessible. Parially developed Written, but out-date and not
used. No written protocols.
Reliability 15% No corrective work order events within 12 months
<2 corrective work order events within 12 months
2-5 corrective work order events within 12 months
6-8 corrective work order events within 12 months
>8 corrective work order events within 12 months
Rio Rancho Likelihood Matrix
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9
Use consequence and likelihood scoring matrices to quantify risk of asset failure
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Weight-> 0.15 0.15 0.20 0.25 0.25 0.45 0.30 0.05 0.20
MILLS 1 7 10 4 10 6.7 1 1 1 7 2 1.6 94 11.0 23ELSWORTH 1 1 4 1 1 1.6 65 1 4 7 4 3.5 8 5.6 68HEACOCK 1 7 7 1 10 5.4 4 1 1 7 2 2.1 88 11.1 22CACTUS & NASON 4 1 4 1 7 3.6 28 1 1 7 4 2.6 37 9.3 37NASON & DRACAEA 4 1 4 1 4 2.8 41 1 1 7 4 2.7 34 7.4 53FREDERICK/ SUNNYMEAD 7 7 1 1 1 2.8 39 2 1 7 4 3.1 28 8.6 45MORENO 2 4 7 7 1 7 5.1 7 2 1 7 4 3.1 27 15.5 5PERRIS & FIR 4 7 7 4 4 5.1 7 1 4 7 4 3.4 18 17.0 4HEMLOCK 7 4 4 1 7 4.5 14 1 1 7 4 2.5 59 11.0 24ELDER 4 7 4 1 4 3.7 19 1 1 7 4 2.6 39 9.6 32MEDLEY 1 1 1 1 1 1.0 68 1 1 7 4 2.4 73 2.4 94PIGEON PASS ROAD 4 1 1 1 1 1.5 66 1 1 7 4 2.5 65 3.6 84VILLAGE ROAD 1 1 1 1 1 1.0 68 1 4 7 4 3.3 20 3.3 87PERRIS / IRONWOOD 10 7 7 1 4 5.2 5 1 10 7 4 5.3 1 27.5 1HIDDEN SPRINGS 1 1 1 1 1 1.0 68 1 4 7 4 3.4 16 3.4 86STEEPLECHASE / IRONWOOD 4 7 4 1 4 3.7 19 1 1 7 4 2.5 54 9.2 39STEEPLECHASE / KALMIA 4 7 1 1 4 3.1 34 1 4 7 4 3.4 13 10.6 28SUNNYMEAD PKWY 1 1 1 1 1 1.0 68 1 1 7 4 2.4 71 2.4 93PERRIS & KALMIA BOOSTER 1 1 4 1 4 2.4 48 1 1 7 4 2.4 70 5.7 64COVEY 1 1 1 1 4 1.8 58 1 1 7 4 2.4 76 4.3 81REDLANDS / COTTONWOOD 1 1 7 1 4 3.0 36 1 1 7 4 2.6 38 7.7 49
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CONSEQUENCE LIKELIHOOD
ASSET
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Use risk levels to prioritize detailed assessments
Re-score likelihood of failure based on updated field information
Recalculate risk
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Based on risk assessment, identify areas with unacceptable levels of risk
Relative Risk Score of Level 3 Assets
Acceptable / Unacceptable Risk Level
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Benefits from detailed condition assessment
• Identifies specific deficiencies in equipment assessed
• Identifies specific maintenance steps that may be taken to increase asset life and reduce likelihood of failure
• Provides data for the prioritization process
• Repeatable process that can be continued
• Repeated assessments of an asset will build a decay curve
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Condition Assessment is a step-by-step process
• Gather asset data for the high risk assets identified
• Develop assessment criteria
• Upload data into the Asset Condition Evaluation System (ACES) tool
• Field condition assessment by experienced maintenance personnel
• Utilize data in prioritization process
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Asset data gathering
• Assets and their characteristics are captured
• Typically, data is obtained from CMMS/GIS
• Once obtained, data is aligned to hierarchy and asset categories previously developed
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Development of asset condition criteria • “Ask” and “answer” predefined questions that relate to the asset
condition • Questions are grouped by asset type • Answers for each “question” (criteria) are scored from 1 to 5
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Upload data to the SQL database • Pre-populated with risk analysis • Condition data gathered is entered into ACES
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On-site condition assessment
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Condition assessment data will then be used to: • Identify specific deficiencies
in equipment assessed
• Develop condition summary
• Provide data for the prioritization process
• Produce multiple reporting options
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Rio Rancho Water Utility Optimized Asset Management Decision Process
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Summary Data
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Booster Station, 164, 7%
Lift Station, 199, 9%
Reservoir, 16, 1%
Well, 231, 10%
WWTP, 825, 37%
ATF, 809, 36%
System Asset Count
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Booster Station, $1,604,223 , 3%
Lift Station, $2,728,647 , 6%
Reservoir, $8,914,639 , 20%
Well, $5,529,642 , 12%
WWTP, $13,349,150 , 30%
ATF, $12,883,032 , 29%
System Asset Value
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All Asset Trigger Score Range
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Replacement Schedules and Costs
Water Production
Wastewater Treatment Total
Capital Plan $ 70,000 $ 63,000 $133,000
Repairs and Maintenance $ 11,600 $ 14,200 $ 25,800
TOTAL $ 81,600 $ 77,200 $158,800
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$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
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Production Repair and Replacement Schedule Based on Equipment Lifespan
Production Production CM
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$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
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Wastewater Repair and Replacement Schedule Based on Equipment Lifespan
Wastewater Wasterwater CM
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$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
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Combined CM and Replacement Schedule Based on Equipment Lifespan
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0
1,000,000
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3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Year 1 Year 6 Year 11 Year 16 Year 21 Year 26
Simulated Time (Years)
Statistical 5 year NPV Plot versus Typical Lifespan Model
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0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Year 1 Year 6 Year 11 Year 16 Year 21 Year 26
Simulated Time (Years)
Statistical 5 year Pay Back Plot versus Typical Lifespan Model
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0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
0 5 10 15 20 25 30 35
Simulated Time (Years)
Optimized versus 5 year NPV Model
With 5-year payback rule Optimized Replacement Policy
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Questions???