Infrastructure Asset Management - Sustainable Water Infrastructure
Transcript of Infrastructure Asset Management - Sustainable Water Infrastructure
Infrastructure Asset ManagementManagement
Sunil K. Sinha, PhD,Associate Professor and Program Area CoordinatorVia Department of Civil & Environmental Engineering
Email: [email protected]: 540-231-9420
Infrastructure Asset Management
Phone: 540 231 9420
Infrastructure Asset Management g
DEFINITIONS
TECHNIQUES
BEST PRACTICES
2
Infrastructure Asset Management g
DEFINITIONSDEFINITIONS
3
Civil Infrastructure
• Categories of Infrastructure1. Transportation System (Highways, Bridges, etc.)2. Municipal System (Water, Sewer, etc.)3. Building System (Residential, Industrial, etc.)g y ( , , )4. Sport/Recreational System (Stadium, Theme Park, etc.) 5. Hydro-System (Dam, Canal, etc.)6 Energy System (Nuclear Plant Renewal Energy etc )6. Energy System (Nuclear Plant, Renewal Energy, etc.)7. Communication System (Wireless, Cyber, etc.)
4
Why Infrastructure Asset Management?
Infrastructure Asset Management
Asset Management Frameworkg
6
Definition of Asset ManagementDefinition of Asset Management
7
FHWA Asset Management DefinitionFHWA Asset Management Definition
8
Definition from USEPADefinition from USEPA
9
Other DefinitionsOther Definitions
10
Other DefinitionsOther Definitions
11
What does that mean?What does that mean?
12
Guiding PrinciplesGuiding Principles
13
Civil Infrastructure SystemsCivil Infrastructure Systems
14
What is Infrastructure?What is Infrastructure?
15
What is Infrastructure?What is Infrastructure?
16
Milestones in U.S. HistoryMilestones in U.S. History
17
Service LifeService Life
• Physical service life is the length of Physical service life is the length of time which a piece of infrastructure is able to be kept in useful service– Depends on all life cycle phases– Can be extended from original design due to
rehabilitation or preventive maintenance
18
Expected Service Life EstimatesExpected Service Life Estimates
• Airport Buildings: 150yrs• Airport Buildings: 150yrs• Runways: 50yrs
B id D k 50• Bridge Decks: 50yrs• Bridge Sub/Superstructure: 125yrs
T l 200• Tunnels: 200yrs• Sports Complexes: 300yrs• Electricity/telephone lines: 400yrs
Source: Hudson, Haas, Uddin
19
Governmental AccountingGovernmental Accounting
20
What is GASB-34What is GASB 34
• GASB stands for Governmental Accounting Standards Board
• The number refers to Statement 34, issued in June 1999,
• GASB-34 is a new reporting standard for utilities that treat infrastructure as investments instead of expensestreat infrastructure as investments instead of expenses
• GASB-34 is important because it recognizes that infrastructure’s service life is usually extended infrastructure’s service life is usually extended indefinitely and encourages the adoption of an Infrastructure Asset Management Plan
21
GASB-34
GASB-34
GASB-34
GASB-34
GASB-34
GASB-34
GASB-34
GASB-34
GASB-34
What is Infrastructure Management?g
31
Overall FrameworkOverall Framework
Program/Network/System Level
Project Level DatabaseProject Level
In-Service Monitoring &
Evaluation
32
Program/System Levelg y
D t (l ti • Data (location, performance, evaluation)Financing evaluation)
• Deficiencies/Needs (current future)
Budgets(current, future)
• Alternatives & Analyses
PoliciesAnalyses
• Priorities
Exogenous Factors
33
Project/Section LevelProject/Section Level
D t ( t i l • Data (materials, loads, flows, costs, etc )
Standards/Specifications
etc.)• Detailed Design• Construction
Budget Limit• Construction• MaintenanceEnvironmental
ConstraintsConstraints
34
Ideal SystemIdeal System
• Would coordinate and enable the • Would coordinate and enable the execution of all activities
• Maximizes use and expenditure of • Maximizes use and expenditure of resources
• Maximize performance of assetsMaximize performance of assets• Serve all management levels
35
Key IssuesKey Issues
36
ASCE Report CardASCE Report Card
37
State of WaterState of Water
38
Overview of InfrastructuresOverview of Infrastructures
39
Infrastructures InterdependenciesInfrastructures Interdependencies
40
Infrastructure InterdependenciesInfrastructure Interdependencies
41
Critical InfrastructuresCritical Infrastructures
42
Critical InfrastructuresCritical Infrastructures
43
Infrastructure interdependencies are intuitive but not well understoodintuitive but not well understood
44
Water – Energy InterdependencyWater Energy Interdependency
55
Infrastructure Asset Management g
TECHNIQUES
56
Advanced Asset Managementg
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
Advanced Asset ManagementAdvanced Asset Management
73
Inspection / Data CollectionInspection / Data Collection
74
Asset DataAsset Data
75
Why do we Need Data?Why do we Need Data?
76
Data NeedsData Needs
77
Data is for Decisions…Data is for Decisions…
78
Data is for Decisions…Data is for Decisions…
79
What data do we need?
• InventoryL ti• Location
• Facility type• AgeAge• Size• Value
• Performance• Condition• Congestion• Reliability• Use• Safety
What data do we need?What data do we need?
• Cost• Cost– User– New construction– New construction– Maintenance– Asset valueAsset value
• Original cost• Replacement costp
– Lifecycle
Data IssuesData Issues
82
Inventory DataInventory Data
83
Performance DataPerformance Data
84
Data SummaryData Summary
85
Condition AssessmentCondition Assessment
86
Condition AssessmentCondition Assessment
87
Asset PerformanceAsset Performance
88
Level of ServiceLevel of Service
89
Deterioration ModelDeterioration Model
90
Prediction ModelingPrediction Modeling
91
Life Cycle Cost AnalysisLife Cycle Cost Analysis
92
Consequences & Risk Modeling
• Risk is defined as the product of the probability of
Consequences & Risk Modeling
disruption (intended or not) by the consequence of that disruption:
• R = Pd*C
• Risk defined this way represents a mathematical Risk defined this way represents a mathematical expected value: Likelihood of failure times Consequence size
• Consequence refers to the importance of the effects caused by the disruption Negligible Catastrophic
93
Consequences & Risk ModelingConsequences & Risk Modeling
94
Risk Management ProcessRisk Management Process
95
Risk & ConsequenceRisk & ConsequenceTable 5-2. Example Consequence Rating Matrix.
CriteriaRating
HealthEnvironmen
t Reputation Regulation Financial
A. Extreme A1 A2 A3 A4 A5
B. Major B1 B2 B3 B4 B5
C. Moderate C1 C2 C3 C4 C5
D. Minor D1 D2 D3 D4 D5
E. Insignificant E1 E2 E3 E4 E5
Consequence of Failure 1 2 3 4 5A Medium Medium High Extreme Extreme
Likelihood of Failure
B Medium Medium High Extreme Extreme
C Medium Medium High High High
D Low Low Medium Medium Medium
96
E Low Low Medium Medium Medium
Decision MakingDecision Making
97
Maintain/Repair/Rehabilitate/ReplaceMaintain/Repair/Rehabilitate/Replace
98
Prioritize for Future AnalysisPrioritize for Future Analysis
99
Security of Asset SystemsSecurity of Asset Systems
100
Security / VulnerabilitySecurity / Vulnerability
101
Strategic, Tactical, OperationalStrategic, Tactical, Operational
102
Tactical and StrategicTactical and Strategic
103
Pipe Infrastructure SystemPipe Infrastructure System
104
Pipe Failure in Maryland
105
Pipe Data CollectionPipe Data Collection
106
Conceptual Model of PipeConceptual Model of Pipe
107
Pipe Life CyclePipe Life Cycle
108
Failure ParametersFailure Parameters
109
Condition AssessmentCondition Assessment
110
Condition ModelingCondition Modeling
111
Deterioration Models
Good
ExcellentExcellent
Goodn n
Bad
Poor
Good
Poor
Bad
Pipe
Con
ditio
Pipe
Con
ditio
n
112
Maintenance Maintenance MaintenanceRehabilitate Rehabilitate
Time/Age
Maintenance Replace
Time/Age
113
114
115
116
Sustainability
117
What is SustainabilityWhat is Sustainability
118
Triple Bottom Line – Sustainability MetricsTriple Bottom Line Sustainability Metrics
119
Sustainability – Transportation System
120
The Four Pillars of Sustainable Urban TransportationUrban Transportation
• The unsustainable nature of current The unsustainable nature of current urban transportation and land use is well recognized. What is less clear is the prescription for how to move towards a more sustainable future,
i ll i th i t t especially given the many interest groups involved, the complexity of urban systems and the fragmented urban systems and the fragmented nature of decision-making in most urban regions.
121
g
The Four Pillars of Sustainable Urban TransportationUrban Transportation
• It is argued that the process of It is argued that the process of achieving more sustainable transportation requires suitable establishment of four pillars: – effective governance of land use and
itransportation; – fair, efficient, stable funding;
t t i i f t t i t t d– strategic infrastructure investments; and– attention to neighborhood design.
122
The Four Pillars of Sustainable Urban TransportationUrban Transportation
123
Potential Funding Sourcesg
Non-vehicle related Non-location-related General tax base
Local transportation levyLocation-related Development fees
Transit impact feesRight of way feesLeverage real-estate assetsVehicle-related
Non location related Fuel taxesNon-location-related Fuel taxesVehicle license feesNew vehicle or vehicle parts salesTaxesVehicle use feesEmissions fees
Location-related Road tolls
124
Congestion pricingParking feesTransit user fees
Transportation SystemTransportation System
• Sustainability is present in most state DOT y pmissions
• Not just a matter of technology, requires an integrated approach from policy, technology, education, operation, and, p ,
• Not just a matter of fuel type, is also how transportation is conceived
125
Sustainability – Water System
126
Water Sustainability - USEPAWater Sustainability USEPA
127
Four Pillars of SustainabilityFour Pillars of Sustainability
128
Four Pillars of SustainabilityFour Pillars of Sustainability
129
Four Pillars of SustainabilityFour Pillars of Sustainability
130
Four Pillars of SustainabilityFour Pillars of Sustainability
131
Four Pillars of SustainabilityFour Pillars of Sustainability
132
Metrics Sustainable Water UseMetrics Sustainable Water Use
133
Resiliency
134
What is ResilienceWhat is ResilienceAccording to Walker 2006:
Or Milman 2008:Or Milman 2008:
135
Proposed Components of Resiliencep p
136
Advanced Asset ManagementAdvanced Asset Management
BEST PRACTICESBEST PRACTICESBased on USEPA AAM Workshop
137
Water / Wastewater SystemWater / Wastewater System
138
Summarizing in the Five Core QuestionsSummarizing in the Five Core Questions
139
Summarizing in the Five Core QuestionsSummarizing in the Five Core Questions
140
Summarizing in the Five Core QuestionsSummarizing in the Five Core Questions
141
Summarizing in the Five Core QuestionsSummarizing in the Five Core Questions
142
Summarizing in the Five Core QuestionsSummarizing in the Five Core Questions
143
Summarizing in the Five Core QuestionsSummarizing in the Five Core Questions
144
Integration of 5 core questions with 10 step process10-step process
2 What is my required
DevelopAsset
AssessPerformance,
DetermineResidual
DetermineLife Cycle &R l t
Set TargetLevels of
2. What is my required level of service?1. What is the current state of my assets?
AssetRegistry
Performance,Failure Modes
ResidualLife
ReplacementCosts
Levels ofService (LOS)
Determine Optimize Optimize Determine Build AMBusiness Risk(“Criticality”)
O&MInvestment
CapitalInvestment
FundingStrategy
Build AMPlan
3. Which assets 4. What are my best O&M and CIP 5. What is my best long-term are critical to sustained performance?
investment strategies? funding strategy?
Views on Asset Management – FrameworkViews on Asset Management Framework
• Asset management gcan be thought of as an object - a box or framework
128framework
• Following is a brief characterization of
37characterization of 8 different views on asset management 4
56
• These views make up the framework
View 1: Definition - Asset ManagementView 1: Definition Asset Management
• Management paradigm and body of management practices
• Applied to the entire portfolio of infrastructure assets at all levels of the organizationg
• Seeking to minimize total costs of acquiring, operating, maintaining, and renewing assets…Withi i t f li it d • Within an environment of limited resources
• While continuously delivering the service levelscustomers desire and regulators require
• At an acceptable level of risk to the organization
147
View 2: Life Cycle Business ProcessesView 2: Life Cycle Business Processes
Support processesPlan Support processes• Demand management• Knowledge of assets• CIP validation
a
AcquireDispose• Accounting & economics• Condition & performance
monitoring• Business risk exposure
CoreProcesses
AcquireDispose
Renew Operate
p• Works resource
management• Review & continuous
improvement
Maintain
148
View 3: Core AM Program ElementsInformation
Systems
Data &Knowledge
LifecycleProcess &Practices
Total Asset
Organizational People
Total AssetManagement
Plan
Service
OrganizationalIssues
PeopleIssues
Sustainable best value service delivery
Delivery
149
Sustainable, best value service delivery
View 4: Management FrameworkView 4: Management FrameworkAsset ManagementBusiness ProcessesBusiness Processes
Asset ManagementPlans
Strategic Initiatives
Annual Budgets
Operating Budget Capital Budget
150
View 5: Five Core QuestionsView 5: Five Core Questions1. What is the current state of my assets?
What do I own?Where is it?Where is it?What condition is it in? What is its performance?What is its remaining useful life?What is its remaining economic value?
2 What is my required level of service (LOS)?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 Whi h t iti l t t i d f ?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?Wh t th f f il ?What are the consequences of failure?
4. What are my best O&M and CIP investment strategies?What alternative management options exist?Which are the most feasible for my organization?
151
y g5. What is my best long-term funding strategy?
View 6: AM Plan 10-step Processp
DevelopAsset
AssessPerformance,
DetermineResidual
DetermineLife Cycle &
R l t
Set TargetLevels of
Determine Optimize Optimize Determine Build AM
AssetRegistry
Performance,Failure Modes
ResidualLife Replacement
Costs
Levels ofService (LOS)
Business Risk(“Criticality”)
O&MInvestment
CapitalInvestment
FundingStrategy
Build AMPlan
152
View 6: AM Plan 10-step ProcessSystem Layout;Data Hierarchy,Standards, and
Demand Anal.;Balanced
Scorecard;Valuation; LifeCycle Costing
Expected LifeTables;
Decay Curves
ConditionAssessment
Protocol; Rating
p
DevelopAsset
AssessCondition,
DetermineResidual
DetermineLive Cycle &R l t
Set TargetLevels of
Inventory Perform. MetricsDecay CurvesMethodologies
DevelopAsset
AssessPerformance,
DetermineResidual
DetermineLife Cycle &
R l t
Set TargetLevels of
Determine Optimize Optimize Determine Build AM
AssetRegistry
Condition,Failure Modes
ResidualLife Replacement
Costs
Levels ofService (LOS)
AssetRegistry
Performance,Failure Modes
ResidualLife Replacement
Costs
Levels ofService (LOS)
Determine Optimize Optimize Determine Build AMBusiness Risk(“Criticality”)
O&MInvestment
CapitalInvestment
FundingStrategy
Build AMPlan
Root Cause; Confidence LevelFMECA; Asset Mgmt Plan;
Business Risk(“Criticality”)
O&MInvestment
CapitalInvestment
FundingStrategy
Build AMPlan
Root Cause;RCM; PdM;
ORDMB/C Analysis
Confidence LevelRating; Strategic
Validation;ORDM
FMECA;Business RiskExp.; DelphiTechniques
RenewalAnnuity
Asset Mgmt Plan;Policies and
Strategy;Annual Budget
153
ASSET RegistryASSET Registry
154
ASSET LivesASSET Lives
155
ASSET RiskASSET Risk
156
Level of ServiceLevel of Service
157
Maintenance & MonitoringMaintenance & Monitoring
158
View 7: Seven Principles of Asset Managemente Se e c p es o sset a age e t
1. The “Value Added/Level of Service” Principle—assets exist to deliver services and goods that are valued by the customer-deliver services and goods that are valued by the customerstakeholder; for each consumer-stakeholder there is a minimum level of service below which a given service is not perceived as adding value.
2. The “Life Cycle” Principle—all assets pass through a discernable f flife cycle, the understanding of which enhances appropriate
management.3. The “Failure” Principle—usage and the operating environment work
to break-down all assets; failure occurs when an asset can not do what is required by the user in its operating environmentwhat is required by the user in its operating environment.
4. The “Failure Modes” Principle—not all assets fail in the same way. 5. The “Probability” Principle—not all assets of the same age fail at
the same time. 6. The “Consequence” Principle—not all failures have the same
consequences.7. The “Total Cost of Ownership” Principle—there exists a minimum
optimal investment over the life cycle of an asset that best
159
p ybalances performance and cost given a target level of service and a designated level of risk.
View 8: Enterprise Asset Management PlanView 8: Enterprise Asset Management PlanExecutive Summary
Levels of ServiceSection - 2
State of the AssetsSection - 1
Growth & DemandSection - 3
Lifecycle ManagementSection - 4
A t tiO&M Renewal
Management Strategies
AugmentationO&M Renewal
Risk Profile Financial Planning
Business Improvement PlanSection - 8
StrategiesSection - 6Section - 5
gSection - 7
160
Section - 8
Questions ?Questions ?Comments?
161