By Katie McCain

Wachs Water ServicesFebruary 22, 2011

Agenda

�Industry Challenges

�Valve Operability

�High Risks/Costs of Taking No Action

�Asset Management

�Where To Start/Strategies

�Summary

Industry Challenges

�Aging infrastructure

�Reductions in manpower

�Experience/knowledge loss

�Deferred maintenance

�Funding gaps

� Increasing customer demands

�Supply availability

� Infrastructure security

What Is Valve Operability?

Definition of Operability

Initial Operability: Upon arrival, can

the valve be found and easily operated

by the crew?

Right Here, Right Now…

Valve Operability Status QuoBased on 750,000 assessments

Low Operability =

Loss of System Control

(Increases Levels of Risk)

Run to Failure - Strategy

Reliability Threshold

Run to Failure

100%

Pain

Time

Operability

Run To Failure(example)

Reliability Threshold

Buy a CAR

Run to Failure

Buy a CAR

Buy a CAR

Run to Failure

$25,000 $25,000$25,000

Default “Run to Failure” A.M. Strategy

� Is easy/requires no action/abdicates responsibility

� Is great for awhile but eventually causes service disruptions

� Service disruptions cause customer dissatisfaction

� Customer dissatisfaction causes reactive responses not planned activities

� Never get caught up/never get control of the system

High Risks/Costs of Taking No

Action� Overtime and repeat visits

� Unnecessary replacements

� Property damage/restoration cost

� Delays in locating valves

� Loss of water

� Loss of life

� Injuries to workers and citizens

� Lawsuits from injured parties (medical and property)

� Continued catastrophic events

High Risks/ Costs of Taking No

Action (cont.)� Keeps your utility in a reactive mode, chasing

emergencies, trying to keep up

� Low operability = loss of system control

� Water quality challenges

� Lack of fire protection

� Lack of ability to isolate contamination

� Major break containment issues

� Business interruption/transportation interruption

� Interruption of service/customer complaints

� The current situation is not sustainable

Asset Management

Start by answering five key questions

Five Key Questions1. What is the current state of my assets?

� What do I own? Where is it?� What condition is it in?� What is its remaining useful life?� What is its remaining economic value?

2. What is my required level of service (LOS)?� What is the demand for my services by my stakeholders?� What do regulators require?� What is my actual performance?

3. Which assets are critical to sustained performance?� How does it fail? How can it fail?� What is the likelihood of failure?� What does it cost to repair/refurbish/replace?� What are the consequences of failure?

4. What are my best O&M and CIP investment strategies?� What alternative management options exist?� Which are most cost effective for my organization?

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

AssessCondition

DetermineResidual

Life

DetermineRRR $

& Timing

Set TargetLOS

DetermineAppropriateMaintenance

DetermineAppropriate

CIP

FundYour Strategy

Build the AMP

What is the current state of my assets?

What is the required level

of service?

Which assets are critical to

sustain performance

?

What are the best O&M and CIP strategies?

What is the best funding strategy?

InventoryAssets

AssessCondition

AssignBRE Rating(Criticality)

Reliability Centered Maintenance(example)

Reliability Threshold

Buy a CAR

Tune Up

100%

Sustainability Execution

Wiper FluidAir Pressure

StrutsBattery

Wipers

Oil Change

Trans Fluid

Flush

Time

Where to Start/Strategies• Total system assessment

� program approach

• Large & Critical Valves

� core of the system

• Representative survey

� state of the system

• Specific areas

� section of the system

Summary

� The time for action is now, before there is an emergency

� Look at your system and identify the most critical assets in it

� Start by inventorying and rehabilitating those assets

� A long-term approach to valve maintenance will set the utility up for future generations

� There are proven solutions

� Solutions fund themselves

� Start with valves

Katie McCain

Wachs Water Services

214-707-8120

kmccain@wachsws.com