Transcript Slide 1

WERF 2008 Web Seminar Series
A Holistic Approach to Asset Management Using
SIMPLE Knowledge Base for Water and
Wastewater Operations
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A Holistic Approach to Asset Management Using
SIMPLE Knowledge Base for Water and
Wastewater Operations
Tuesday, April 22, 2008
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Today’s Moderators
Dan Woltering
WERF Director of Research
Roy Ramani
WERF Program Director,
Infrastructure Management
Agenda
2:00-2:05
Welcome & Introductions:
Dan Woltering, WERF
2:05-2:10
SIMPLE v1.1:
Application to Drinking Water Industry
Chris Rayburn, AwwaRF
2:10-2:20
Potential of SIMPLE as National/Global
AM Knowledge Base
Duncan Rose, GHD Consulting Inc.
2:20-2:55
SIMPLE v1.1:
Contents, Functionality, and Navigational Aspects
Duncan Rose, Andrew Sneesby, GHD Consulting Inc.
2:55-3:10
Question & Answer Session
3:15
Wrap Up and Closing
Chris Rayburn
 Chris is the Director of Research Management at the
Awwa Research Foundation, where he oversees the
Foundation’s research program.
 Prior to coming to AwwaRF, he managed the Denver
office of IT Corporation, an international engineering
consulting firm.
 Chris is a registered professional hydrogeologist with
20 years of experience in the areas of water supply,
resource management, and groundwater protection.
Duncan Rose
 Duncan is Technical Director, asset management
and a Principal Consultant for GHD Consulting
Inc.
 He is a former city/county manager, serving with
the cities of Columbus, OH and Dallas, TX, as
deputy county manager in Gainesville, FL, and
county manager for Seminole County, FL.
 Duncan is a co-author of WEF’s textbook Managing the Water and
Wastewater Utility and a contributing author to the 6th edition International
Infrastructure Management Manual.
 Duncan was an adjunct faculty member in the Askew School of Public
Policy and Administration at Florida State University for nine years where
he taught government financial management.
 He holds a BA in management and economics from Grove City College,
a Master’s in planning from the University of Tennessee, and a Master’s
in public sector management from The Ohio State University.
U.S. EPA has been introducing / reinforcing asset
management practices to the U.S. water industry
for 5 years now
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“Fundamentals” workshops began in 2002 (2)
35 national workshops have been run to date, about 8 each year
for last 4 years
An estimated 3,000 industry stakeholders have attended
These represent over 1,200 agencies & organizations
WERF AwwaRF SIMPLE Webcast
Five core interests and concerns of participants
have emerged
1.
2.
What exactly is AM? (What are the techniques involved, how
do they work, and how do they differ from what we do now?)
What are the “deliverables”? The payback?
3.
Where to begin and how to proceed with an AM program in my
own organization?
4.
How to persuade my policy officials to buy into an AM program
investment?
5.
What role will regulators and Congress play?
In short – knowledge!
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Asset management has now emerged as our
fundamental model for how we manage water
and wastewater services
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What we have learned over the 5 years
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In reality, asset management is a business model, a
way of doing business. But to be truly functional, it
must be carefully fitted to the unique organizational
environment of each agency.
Like any business model, for the model to be effective,
the organizational culture must embrace it. To
embrace it, a culture needs
• to understand how it works and what each member’s role is,
• to feel competent in the day-to-day application of the practices
and techniques, and
• to feel confident that the practices are, in fact, improving the
work experience of each employee.
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What we have learned, continued
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Effective “knowledge transfer” about the asset
management way of thinking and the body of practices
involved is the single most important success
factor for a start-up asset management program.
That is, as challenging as the technical aspects of an
asset management improvement program can be,
changing the culture to an asset-centered culture is
often even more challenging.
Success starts with an effective “knowledge transfer”
about the asset management way of thinking and the
body of practices into the “culture”.
WERF AwwaRF SIMPLE Webcast
What we have learned, continued

Knowledge transfer is about communicating the “whys and
wherefores” of asset management in a way that the culture
accepts, then adopts the AM “way of thinking”. To be effective,
this transfer must include:
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Structured “formal” training;
Structured “over-the-shoulder” mentoring of task teams around small
but real “pilot” type projects (renewal of a lift station or the application
of condition-based predictive maintenance to blower motors, for
example); and
A referent knowledge base (an “Asset Management University”) for
International
Manual
new people
who join Infrastructure
the organization Management
to understand the
basics and
for existing employees moving up in responsibilities to deepen their
skills and broaden their perspectives.
Peer-to-Peer exchange with AM practitioners in other relevant
agencies.
SIMPLE
•
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What we have learned, concluded
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Knowledge transfer, then, must target supporting
• Initial adoption of AM within an organization
• New folks entering the organization once AM is in place
• Practitioners who wish to raise their levels of competency at
any time
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SIMPLE = “AM University”
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Infrastructure is the foundation to sustained
quality of life
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Consequences of asset failure can be severe
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A paradigm shift…
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Transition from building and operating to managing
assets
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Extending asset life
Optimizing maintenance and renewal
Developing accurate long-term funding strategies
Sustaining long term performance!
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Three fundamental management decisions
1.
2.
3.
What are my work crews doing, where are they doing
it—and why?
What CIP projects should be done—and when?
When should I repair, when should I rehabilitate, and
when should I replace?
These decisions typically account for over 80% of a
utility’s annual expenditures
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Views on asset management – a framework

Asset management can
be thought of as an
object - a box or
framework
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Following is a brief
characterization of
8 different views on
asset management
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These views make up
the framework
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View 1: Definition - asset management
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Management paradigm and a body of management
practices
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Applied to the entire portfolio of infrastructure assets at
all levels of the organization
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Seeking to minimize total costs of acquiring, operating,
maintaining, and renewing assets…
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Within an environment of limited resources
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While continuously delivering the service levels
customers desire and regulators require
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At an acceptable level of risk to the organization
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View 5: Five core questions
1.
What is the current state of my assets?
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2.
What is my required level of service (LOS)?
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3.
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How does it fail? How can it fail?
What is the likelihood of failure?
What does it cost to repair?
What are the consequences of failure?
What are my best O&M and CIP investment strategies?
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5.
What is the demand for my services by my stakeholders?
What do regulators require?
What is my actual performance?
Which assets are critical to sustained performance?
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4.
What do I own?
Where is it?
What condition is it in? What is its performance?
What is its remaining useful life?
What is its remaining economic value?
What alternative management options exist?
Which are the most feasible for my organization?
What is my best long-term funding strategy?
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View 6: AM plan 10-step process
System Layout;
Data Hierarchy,
Standards, and
Inventory
Condition
Assessment
Protocol; Rating
Methodologies
Expected Life
Tables;
Decay Curves
Valuation; Life
Cycle Costing
Demand Anal.;
Balanced
Scorecard;
Perform. Metrics
Develop
Asset
Registry
Assess
Performance,
Condition,
Failure Modes
Determine
Residual
Life
Determine
Live
Life Cycle &
Replacement
Costs
Set Target
Levels of
Service (LOS)
Determine
Business Risk
(“Criticality”)
Optimize
O&M
Investment
Optimize
Capital
Investment
Determine
Funding
Strategy
Build AM
Plan
FMECA;
Business Risk
Exp.; Delphi
Techniques
Root Cause;
RCM; PdM;
ORDM
B/C Analysis
Confidence Level
Rating; Strategic
Validation;
ORDM
Renewal
Annuity
Asset Mgmt Plan;
Policies and
Strategy;
Annual Budget
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View 7: Seven principles of asset management
1.
2.
3.
The “Value Added/Level of Service” Principle—assets exist to deliver
services and goods that are valued by the customer-stakeholder; for
each consumer-stakeholder there is a minimum level of service below
which a given service is not perceived as adding value.
The “Life Cycle” Principle—all assets pass through a discernable life
cycle, the understanding of which enhances appropriate management.
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 environment.
4.
The “Failure Modes” Principle—not all assets fail in the same way.
5.
The “Probability” Principle—not all assets 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 balances
performance and cost given a target level of service and a designated
level of risk.
WERF AwwaRF SIMPLE Webcast
Inside the AM framework
Level 3
Level 2
Level 1
Condition Assessment
Business Risk Exposure
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Andrew Sneesby

Principal strategic asset management consultant with
GHD.

15 years experience in senior management roles
within local government and 20 years in the state
government.

Responsible for the implementation of Asset
Management Information Systems and GIS in
medium- and large-sized councils across Australia.

Worked with local and state governments throughout
Australia to assist them in implementing asset
management programs.
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Question & Answer Session
To ask our speakers a question, please follow
the instructions on the next slide.
To Submit Your Question:
Exit Fullscreen by clicking the computer icon at
bottom left:
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Closing & Follow-Up

Thank you for participating!

As you leave today’s session, an online
survey will follow. We appreciate your
feedback.

This presentation has been recorded. A
link to the recording will be available at
www.werf.org later this week.

For more information, go to www.werf.org