Asset Management Strategies: Moving from costs to outcomes Tyrone Toole, ARRB Group Ltd South East...

Asset Management Strategies:Moving from costs to outcomes

Tyrone Toole, ARRB Group Ltd

South East Australian Transport Strategy Inc,

Ordinary General Meeting,

17th August 2012, Wantirna

www.arrb.com.au Trusted advisor to road authorities for technical input and solutions

The circumstances….in a rural context

www.arrb.com.au Trusted advisor to road authorities for technical input and solutions3

Preservation &renewal of

existing assets

Environment

Integrated system

Building communities

Safety

Economic

Regional development

Accessibility

Mobility

Onwards to ..

Total Transport System Management(to meet demand/priority outcomes)

TheSafe

System

Safe speeds

More forgiving roads

and roadsides


The What & How - Integrated AM Framework

Phase 1Define

objectives

Phase 2Form

strategies

Phase 3Developprogram

Phase 5Implementprogram

Phase 4Identifyneeds

Phase 6Auditwork

Phase 7Review

Strategic planning process Actions Evaluation

Feedback

Review


Phase 1: Example Objectives & AM KPI’s• Pavement condition - %

network less than specified roughness value

• Achievement of specified STANDARDS

• Achievement of agreed treatment programs

• Implementation of ‘best practice’

• Customer satisfaction

• Reduction in crashes & cost of road trauma

• Assist economic & regional development

• Develop a more integrated & sustainable road transport system

• Minimise impacts on the community & the environment

• Build effective access to services

6

1. What condition

should State roads be in?

2. What is the actual

condition of State

Roads?

3. What is being done to address any gap?

4. What level of funding would be

required to address findings?

SafetyEfficiencyRetained

value

Pavements, Configuration & Bridges

Performance criteria & condition

Data issues

Program management

Project selection

Outcomes

Engagement

What should we be doing? An audit framework


Getting it right

• ‘Needs’ analysis

• Identification of risks

• Prioritisation

– ‘Must do’

– ‘Should do’

– ‘Could do’

• Option selection

Importance of simple measures

Slow response(3 – 6 months)

Fast response(4 – 6 weeks)


Total transport costs

Austroads Asset Management Guidelines, 2006

What really happens to RACs?


Typical benefits: Australian examples

Simple drainage measures • Deterioration reduced by factor of 2 - 4

Optimum maintenance(sealed)

• $2 - $3 net benefits per $RAC

Safe System programs • 0.5 lives saved per yr per $10million

Desirable standards(sealed)

• Marginal to moderately positive

General infrastructure • 2 lives saved per annum per $100million

Measures Typical Benefits

Blackspot programs • 1.5 lives saved per yr per $10million


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

Year

Per

cen

tag

e o

f N

etw

ork

Very Poor

Poor

Mediocre

Good

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

Year

Per

cen

tag

e o

f N

etw

ork

Very Poor

Poor

Mediocre

Good

Impact of current and optimum fundingScenario A – Current Scenario B – Optimum

• Costs• 5 year needs between 3.6 (Minimum desirable) and 4.8 (Moderate standards) times

current budget• Proposed future rates of coverage similar to other states

• Benefits• $2 to $3 net benefits per $ investment above current funding level• Realisation depends on what is available• Corresponding road user savings between $3 billion and $3.5 billion in 20 years


A sample of knowledge

www.arrb.com.au Trusted advisor to road authorities for technical input and solutions 12

The way ahead

• Understand stakeholder needs

• Calculate and sell the benefits and outcomes as normal business

• Adopt appropriate and affordable standards

• Apply and invest in knowledge

• Understand your strengths and challenges

• Teamwork

Asset Management Strategies: Moving from costs to outcomes Tyrone Toole, ARRB Group Ltd South East...

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