NHI Training Course on
NHI Training Course on
Transportation Asset
Transportation Asset
Management
Management
Ref
Ref
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Asset Management Guide Chapters 1 and 2Asset Management Guide Chapters 1 and 2Module 2
Module 2
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Asset Management
Asset Management
Framework and Principles
Learning Objectives
Learning Objectives
Define transportation asset management Define transportation asset management –– what is it?what is it?
Describe the principles of good asset management practiceDescribe the principles of good asset management practice
Discuss the benefits of asset management for yourDiscuss the benefits of asset management for your agencyagency –– why do it?why do it?
Discuss the four key areasDiscuss the four key areasof the asset management framework
of the asset management framework
Explain the characteristics of good practiceExplain the characteristics of good practice important to each areaA strategic approach to
A strategic approach to
managing transportation
managing transportation
infrastructure
infrastructure
What Is Transportation Asset Management?
What Is Transportation Asset Management?
Principles of Asset Management
Principles of Asset Management
Asset management entailsAsset management entails•
• A strategic viewA strategic view
•
• A set of processesA set of processes
•
Strategic View
Strategic View
Policy basedPolicy based –– options and consequences are considered in options and consequences are considered in terms of consistency with adopted goals and objectivesterms of consistency with adopted goals and objectives
Performance drivenPerformance driven –– options and consequences are options and consequences areconsidered in terms of ability to achieve desired outcomes
considered in terms of ability to achieve desired outcomes
Comprehensive Comprehensive –– looking at all facets of a problem, and looking at all facets of a problem, and considering options and consequencesconsidering options and consequences
Long termLong term –– over an extended time period over an extended time period (e.g., over the life cycle of an asset)Benefits of Asset Management
Benefits of Asset Management
Why Do It?
Why Do It?
Systematic approach to defining needs and optionsSystematic approach to defining needs and options
Improved use of available resourcesImproved use of available resources
Improved credibility and accountability for decisionsImproved credibility and accountability for decisions
Improved performance and service to customersImproved performance and service to customers
Flexibility to make decisions based on performanceFlexibility to make decisions based on performance
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From Front Office to the Front Lines
From Front Office to the Front Lines
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Stakeholders
Stakeholders
Agency Executives
Agency Executives
District / Division Managers
District / Division Managers
Section / Group Managers
Section / Group Managers
Agency Central Office and Field Staff
Agency Central Office and Field Staff
Strategic Strategic Information Information Tactical Tactical Information Information
Coordination Across Agency Units
State DOTs are Unique
State DOTs are Unique
No single, No single, ““correctcorrect”” approach to asset managementapproach to asset management
But there are useful perspectives for all agenciesBut there are useful perspectives for all agencies•
• Improvement can begin Improvement can begin todaytoday with existing staff with existing staff and resources
and resources •
• Agencies now doing Agencies now doing ““good asset managementgood asset management”” can improve
can improve •
• Organizational and institutional factors pose Organizational and institutional factors pose biggest challenges
States Doing No States Doing No Asset Management
Asset Management
States Doing 100 Percent States Doing 100 Percent
Asset Management
Asset Management
National Asset Management Scorecard
National Asset Management Scorecard
0
0
(Everyone is doing something) (Everyone is doing something)
0
0
(No one is doing everything) (No one is doing everything)
Focus of Asset Management
Focus of Asset Management
At its Core, Asset Management
At its Core, Asset Management
Focuses On
Focuses On
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–
Resource Allocation and Utilization
A Resource Allocation and Utilization Process
A Resource Allocation and Utilization Process
Planning and Programming
Planning and Programming
Program Delivery
Program Delivery
Systems Monitoring and Performance Results
Systems Monitoring and Performance Results
Policy Goals and Objectives
Policy Goals and Objectives Quality Inform
ation and Analysis
Quality Inform
Formalizing a Management Framework
Formalizing a Management Framework
Refer to management matrices in Guide, Chapter 2 Refer to management matrices in Guide, Chapter 2
Organized around four functional areas of asset Organized around four functional areas of asset managementmanagement •
• Policy, goals, and objectivesPolicy, goals, and objectives
•
• Planning and programmingPlanning and programming
•
• Program deliveryProgram delivery
•
• Information and analysisInformation and analysis
Each matrix includesEach matrix includes•
• Basic characteristics of good asset managementBasic characteristics of good asset management
•
• Specific evaluation criteria Specific evaluation criteria
•
Policy Goals and Objectives
Policy Goals and Objectives
Characteristics of Good Practice
Characteristics of Good Practice
1.
1.
Goals and objectives reflect a comprehensive, longGoals and objectives reflect a comprehensive, long--term view term view of asset performance and costof asset performance and cost
2.
2.
Goals and objectives call for good stewardship of assetsGoals and objectives call for good stewardship of assets3.
3.
Policies reflect a performancePolicies reflect a performance--driven approach to resource driven approach to resource allocationallocation
4.
Example from
Example from
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Policy Goals and Objectives
Policy Goals and Objectives
”
”
Matrix
Matrix
1. Goals and objectives reflect a comprehensive, long
1. Goals and objectives reflect a comprehensive, long--term view of term view of asset performance and cost
asset performance and cost
Criteria
Criteria StateState--ofof--thethe--ArtArt Defined goals
Defined goals
and objectives
and objectives
Goals and objectives are comprehensive,
Goals and objectives are comprehensive,
integrated with other policies, and supported by
integrated with other policies, and supported by
performance measures
performance measures
Asset management is
Asset management is
catalyst for decision
catalyst for decision
and action
and action
Asset management principles are clearly
Asset management principles are clearly
articulated and recognized as driving force for
articulated and recognized as driving force for
resource allocation
resource allocation
Life
Life--cycle perspectivecycle perspective Goals and objectives embody lifeGoals and objectives embody life--cycle cycle
economic analyses and encourage strategies
economic analyses and encourage strategies
with long
Planning and Programming
Planning and Programming
Characteristics of Good Practice
Characteristics of Good Practice
1.1. Planning and programming procedures are consistent and Planning and programming procedures are consistent and reinforce goals and objectives
reinforce goals and objectives
2.
2. Agency considers a range of alternatives for addressing system Agency considers a range of alternatives for addressing system deficiencies
deficiencies
3.
3. PerformancePerformance--based concepts guide planning, programming, based concepts guide planning, programming, and monitoring
and monitoring
4.
4. Tradeoffs are based on relative merit and understanding of Tradeoffs are based on relative merit and understanding of comparative costs and consequences
Example from
Example from
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Planning and Programming
Planning and Programming
”
”
Matrix
Matrix
3.
3. PerformancePerformance--based concepts guide planning, programming, based concepts guide planning, programming, and monitoring
and monitoring
Criteria
Criteria StateState--ofof--thethe--ArtArt Performance
Performance--based based budgeting
budgeting
Recommended program budgets relate costs to
Recommended program budgets relate costs to
levels of service or performance measures
levels of service or performance measures
Benchmark
Benchmark
achievement
achievement
Planning and programming processes identify
Planning and programming processes identify
resources required to maintain existing assets at
resources required to maintain existing assets at
target performance levels and least life
target performance levels and least life--cycle costcycle cost System monitoring
System monitoring
Reporting
Reporting
System monitoring helps quantify impacts of
System monitoring helps quantify impacts of
program decisions and provides feedback for
program decisions and provides feedback for
future planning and programming
future planning and programming
Progress toward performance targets is measured
Progress toward performance targets is measured
and reported regularly
Program Delivery
Program Delivery
Characteristics of Good Practice
Characteristics of Good Practice
1.
1.
Agency considers all available delivery methodsAgency considers all available delivery methods2.
2.
Agency tracks program outputs and outcomesAgency tracks program outputs and outcomes3.
3.
Agency reports program delivery accomplishmentsAgency reports program delivery accomplishments4.
Example from
Example from
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Program Delivery
Program Delivery
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”
Matrix
Matrix
4.
4. The approved program is delivered efficiently and effectivelyThe approved program is delivered efficiently and effectively
Criteria
Criteria StateState--ofof--thethe--ArtArt Delivery measures
Delivery measures Measures are defined and tracked to gauge Measures are defined and tracked to gauge
successful program delivery in scope, cost, and
successful program delivery in scope, cost, and
schedule
schedule
Project and program
Project and program
adjustments
adjustments
The agency has a process to review and approve
The agency has a process to review and approve
project changes and resulting program
project changes and resulting program
adjustments
Information and Analysis
Information and Analysis
Characteristics of Good Practice
Characteristics of Good Practice
1.
1.
Agency maintenance highAgency maintenance high--quality information needed to quality information needed to support asset managementsupport asset management
2.
2.
Agency collects and updates data costAgency collects and updates data cost--effectivelyeffectively3.
3.
Information is automated and on accessible platformsInformation is automated and on accessible platforms4.
4.
Effective decisionEffective decision--support tools are availablesupport tools are available5.
Criteria
Criteria StateState--ofof--thethe--ArtArt Asset inventory
Asset inventory Agency maintains complete, current, and accurate Agency maintains complete, current, and accurate inventory of assets
inventory of assets
Asset condition
Asset condition Condition data are updated periodically to meet Condition data are updated periodically to meet regulatory requirements and provide timely and
regulatory requirements and provide timely and
accurate information to decision
accurate information to decision--makersmakers Customer perception
Customer perception Data on customer perception of asset condition Data on customer perception of asset condition and agency performance are updated regularly
and agency performance are updated regularly
Example from
Example from
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Information and Analysis
Information and Analysis
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”
Matrix
Matrix
1.
1. Agency maintains highAgency maintains high--quality information needed to support quality information needed to support asset management
asset management
Information on actual cost and accomplishment is
Information on actual cost and accomplishment is
tracked to be able to improve cost estimation
tracked to be able to improve cost estimation
Program outputs
Applying the Framework to Your Agency
Applying the Framework to Your Agency
Asset management is adaptable to different agency situationsAsset management is adaptable to different agency situations•
• Organizational structureOrganizational structure
•
• Management culture Management culture
•
• Funding environment Funding environment
•
• Technological capabilityTechnological capability
Fundamentals of asset management Fundamentals of asset management –– generally applicable to generally applicable to all agenciesall agencies
Implementing asset management Implementing asset management –– customization and tailoring customization and tailoring to be expectedSo is Asset Management a Fad?
So is Asset Management a Fad?
Can we defend not being strategic Can we defend not being strategic –– not being comprehensive, not being comprehensive, longlong--term, policyterm, policy--driven, performancedriven, performance--based?based?
Can we defend not considering options and tradeoffs?Can we defend not considering options and tradeoffs?
Can we defend not setting performance goals and not Can we defend not setting performance goals and not measuring results?measuring results?
