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Asset Management
                    Workshop

                         Keith Hofseth
                Institute for Water ...
Presentation Goals

     • Asset management – An economist view
     • Major Rehab Guidance
     • Major Rehab Tool




US...
What is Asset Management?

     • A business process and a decision making framework
         that covers an extended time...
What is Asset Management?


     • A business process and a decision making framework
       that covers an extended time ...
What is Asset Management?

     • A business process and a decision making framework
       that covers an extended time h...
What is Asset Management?

     • A business process and a decision making framework
       that covers an extended time h...
What is Asset Management?
     • A business process and a decision making framework
         that covers an extended time ...
• A business process
                Inventory and assessment of assets kept current over time’
                Informatio...
Project History
     • Describe the physical condition of the project and project
       features including an assessment ...
Economic Considerations
     •   The base condition is the alternative which all other plans will be measured
         aga...
Engineering Considerations
     • Reliability Analysis
     • The base condition is the alternative which all other plans ...
Engineering Considerations
     • Engineering Characterization of Structural Features. The complex
         nature, time a...
Environmental Considerations

     •   Environmental Effects.
     •   Coordination and Correspondence.
     •   Reports a...
Assessment of Alternatives

     • Critical Assumptions and Key Variables. The assessment
       should identify which …va...
CONCEPTUAL APPROACH

     • In thinking about the maintenance budget it is important to
         remember that the evaluat...
US Army Corps   Institute For Water Resources - IWR
of Engineers
US Army Corps   Institute For Water Resources - IWR
of Engineers
PUP Functions

                              0.7

                              0.6

                              0.5
   ...
US Army Corps   Institute For Water Resources - IWR
of Engineers
• The Level of detail should be commensurate with the
         proposed actions.




US Army Corps                        ...
Analysis Must Answer

     1.     Why are we doing this now?
     2.     What are the consequences of not doing this now?
...
US Army Corps   Institute For Water Resources - IWR
of Engineers
“Good to Better”




US Army Corps             Institute For Water Resources - IWR
of Engineers
“Good to Great”
     • Change business process to meet information needs
           • Probability of performance over time...
New Software Tool

     • Rubble Mound Breakwater




US Army Corps                    Institute For Water Resources - IWR...
New Software Tool
   • Event-driven Monte Carlo Simulation
       Storm Events
            Beachfx Approach
              ...
Rubble Mound Breakwater Prototype




US Army Corps              Institute For Water Resources - IWR
of Engineers
3-Pane View




US Army Corps             Institute For Water Resources - IWR
of Engineers
Project Tree and Data Grid




US Army Corps              Institute For Water Resources - IWR
of Engineers
Storm Detail




US Army Corps             Institute For Water Resources - IWR
of Engineers
Damage Functions




US Army Corps             Institute For Water Resources - IWR
of Engineers
Simulation




US Army Corps           Institute For Water Resources - IWR
of Engineers
Status
         • Working framework for User Interface
         • Threaded Event-Driven Simulation
         • Initial deve...
What Asset Management Does

                                     New
                                     asset           ...
Thank you for your attention.




US Army Corps         Institute For Water Resources - IWR
of Engineers
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Transcript of "Asset Management Workshop"

  1. 1. Asset Management Workshop Keith Hofseth Institute for Water Resources 18-19-June 2008 US Army Corps Institute For Water Resources - IWR of Engineers
  2. 2. Presentation Goals • Asset management – An economist view • Major Rehab Guidance • Major Rehab Tool US Army Corps Institute For Water Resources - IWR of Engineers
  3. 3. What is Asset Management? • A business process and a decision making framework that covers an extended time horizon. From “Asset Management Overview” - DOT US Army Corps Institute For Water Resources - IWR of Engineers
  4. 4. What is Asset Management? • A business process and a decision making framework that covers an extended time horizon. • Draws from economics and engineering theory and practice. From “Asset Management Overview” - DOT US Army Corps Institute For Water Resources - IWR of Engineers
  5. 5. What is Asset Management? • A business process and a decision making framework that covers an extended time horizon. • Draws from economics and engineering theory and practice. • Considers a broad range of assets. From “Asset Management Overview” - DOT US Army Corps Institute For Water Resources - IWR of Engineers
  6. 6. What is Asset Management? • A business process and a decision making framework that covers an extended time horizon. • Draws from economics and engineering theory and practice. • Considers a broad range of assets. • Incorporates the economic assessment of tradeoffs between alternative investment options at both the project level and the network or system level. From “Asset Management Overview” - DOT US Army Corps Institute For Water Resources - IWR of Engineers
  7. 7. What is Asset Management? • A business process and a decision making framework that covers an extended time horizon. • Draws from economics and engineering theory and practice. • Considers a broad range of assets. • Incorporates the economic assessment of tradeoffs between alternative investment options at both the project level and the network or system level. • All to help agencies make cost-effective investment decisions. From “Asset Management Overview” - DOT US Army Corps Institute For Water Resources - IWR of Engineers
  8. 8. • A business process Inventory and assessment of assets kept current over time’ Information developed specifically for decision making process • and a decision making framework that covers an extended time horizon. Use major rehab framework US Army Corps Institute For Water Resources - IWR of Engineers
  9. 9. Project History • Describe the physical condition of the project and project features including an assessment of the engineering condition and reliability of each. • Provide a history of project cost. Describe and display on an annual basis the operation, maintenance, repair and rehabilitation cost history of the project. • Describe and display instances of service disruption and emergency repairs. • Describe and document quantitatively historical changes in the service level capable of being provided by the project. US Army Corps Institute For Water Resources - IWR of Engineers
  10. 10. Economic Considerations • The base condition is the alternative which all other plans will be measured against. In comparison to other Corps planning studies, the base condition is synonymous with the “without project” condition. • select the probability of unsatisfactory performance • Based on the existing physical condition of, and the current and forecasted demands on the features, estimate the frequency of service disruption and the physical consequences resulting over the planning period. • Develop an event tree. • Estimate all costs necessary to correct the service disruption. • Estimate the economic cost for each disruption. • Combine the frequency of service disruption with the consequences of disruption. • Monte Carlo simulation is one technique for combining risks and determining expected values. US Army Corps Institute For Water Resources - IWR of Engineers
  11. 11. Engineering Considerations • Reliability Analysis • The base condition is the alternative which all other plans will be measured against. In comparison to other Corps planning studies, the base condition is synonymous with the “without project” condition. • Probability of Unsatisfactory Performance • Reliability Indices • Hazard Functions • Historical Frequency of Occurrence Analyses • Expert Elicitation. • Calibration of Reliability Models. • Time Dependent Reliability • Projections of future changes in reliability US Army Corps Institute For Water Resources - IWR of Engineers
  12. 12. Engineering Considerations • Engineering Characterization of Structural Features. The complex nature, time and cost of reliability analyses require that the number of elements analyzed for any project or feature be reduced to the critical elements, or to representative groups or sections. • Engineering Consequences. The engineering, or physical, consequences of the expected level of performance should be described in detail for each performance function evaluated. • Engineering Evaluation of Alternatives. Alternatives investigated should include the use of new materials, new repair techniques and innovative designs as well as all reasonable alternative configurations. US Army Corps Institute For Water Resources - IWR of Engineers
  13. 13. Environmental Considerations • Environmental Effects. • Coordination and Correspondence. • Reports and Studies. • NEPA documentation US Army Corps Institute For Water Resources - IWR of Engineers
  14. 14. Assessment of Alternatives • Critical Assumptions and Key Variables. The assessment should identify which …variables is critical to reported economic evaluation of each rehabilitation alternative. • Reporting of Statistical Results. The output from the analysis of reliability based costs and benefits are statistics generated by analytical procedures or simulations involving probabilities. • Recommended Plan. Provide a recommendation supported by the engineering, economic and environmental analysis. US Army Corps Institute For Water Resources - IWR of Engineers
  15. 15. CONCEPTUAL APPROACH • In thinking about the maintenance budget it is important to remember that the evaluation considers alternative future streams of project services and costs and the reliabilities of those services and costs. Any maintenance plan results in a different stream of these variables. The purpose of a risk-based benefit-cost analysis is to determine the economic efficiency of alternative plans. The evaluation must account for the fact that each O&M plan may differ in terms of its effects on project future service levels and/or project reliability. US Army Corps Institute For Water Resources - IWR of Engineers
  16. 16. US Army Corps Institute For Water Resources - IWR of Engineers
  17. 17. US Army Corps Institute For Water Resources - IWR of Engineers
  18. 18. PUP Functions 0.7 0.6 0.5 Probability 0.4 0.3 0.2 0.1 0 0 20 40 60 80 Time US Army Corps Institute For Water Resources - IWR of Engineers
  19. 19. US Army Corps Institute For Water Resources - IWR of Engineers
  20. 20. • The Level of detail should be commensurate with the proposed actions. US Army Corps Institute For Water Resources - IWR of Engineers
  21. 21. Analysis Must Answer 1. Why are we doing this now? 2. What are the consequences of not doing this now? 3. Which project or component is in the most critical condition? 4. Which maintenance strategy is the best? US Army Corps Institute For Water Resources - IWR of Engineers
  22. 22. US Army Corps Institute For Water Resources - IWR of Engineers
  23. 23. “Good to Better” US Army Corps Institute For Water Resources - IWR of Engineers
  24. 24. “Good to Great” • Change business process to meet information needs • Probability of performance over time assuming alternative maintenance strategies • Estimation of consequences for alternative performance levels • Develop decision support tools for life-cycle asset management • We can achieve “simplicity” through technology and training. US Army Corps Institute For Water Resources - IWR of Engineers
  25. 25. New Software Tool • Rubble Mound Breakwater US Army Corps Institute For Water Resources - IWR of Engineers
  26. 26. New Software Tool • Event-driven Monte Carlo Simulation Storm Events Beachfx Approach Bootstrap sampling with replacement Extend to include storm time detail Breakwater Reaches Reach 2 Reach 1 Damage to Breakwater F(wave, stone size) Wave Transmission Consequence Area Consequences • Jeff Melby – Domain Expert Fortran Code for Neah Bay US Army Corps Institute For Water Resources - IWR of Engineers
  27. 27. Rubble Mound Breakwater Prototype US Army Corps Institute For Water Resources - IWR of Engineers
  28. 28. 3-Pane View US Army Corps Institute For Water Resources - IWR of Engineers
  29. 29. Project Tree and Data Grid US Army Corps Institute For Water Resources - IWR of Engineers
  30. 30. Storm Detail US Army Corps Institute For Water Resources - IWR of Engineers
  31. 31. Damage Functions US Army Corps Institute For Water Resources - IWR of Engineers
  32. 32. Simulation US Army Corps Institute For Water Resources - IWR of Engineers
  33. 33. Status • Working framework for User Interface • Threaded Event-Driven Simulation • Initial development and sample population of SQL Server Databases • Event Driven Seasonal Storms Storm Summary Information No storm time detail at present Repair Rehabilitation US Army Corps Institute For Water Resources - IWR of Engineers
  34. 34. What Asset Management Does New asset complete rebuild, changed demands best Initial state, condition grade „A“ Strategy: Ideal Performance Level, best and continous Depending on C maintenance maintenance strategy Strategy c A B Strategy: no maintenance at all Structural capacity Strategy b Strategy d Minimum Acceptable Level varies, depending on political, Strategy a social and administrative consensus worst Failure Asset Age and Lifespan (in years) 20 40 80 ∝ - varies between asset types, construction, usage - US Army Corps Institute For Water Resources - IWR of Engineers 34
  35. 35. Thank you for your attention. US Army Corps Institute For Water Resources - IWR of Engineers
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