2. Table of Contents
Message from the Chairman ...............................................................................................2
Message from the Executive Sponsor.................................................................................4
Acknowledgements .............................................................................................................6
Enabling Asset Management to become an Enterprise endeavor ......................................8
Achieving the MTA goals through better asset management............................................10
MTA Asset Management Improvement Strategy...............................................................12
1. Strategic Direction...................................................................................................12
2. Planning, Decision-Making and Risk Management.................................................14
3. Asset Maintenance, Reliability and Project Delivery ...............................................16
4. Asset Information Strategies and Systems .............................................................18
5. Asset Management Capabilities and Culture ..........................................................20
Program Benefits...............................................................................................................22
Asset Management Maturity..............................................................................................24
Conclusions.......................................................................................................................26
October 2015
3. Message from the Chairman
The MTA’s network is almost unimaginably valuable. In fact, the combined value
of our assets—trains, buses, bridges, and tunnels, to name just a few—is nearly
$1 trillion. With so much at stake, better managing our assets has the potential to
yield tremendous savings, while leading to safer, more reliable service. The reason
why is simple. Well maintained assets break less and last longer, which translates
into better service and cost-savings that can be reinvested back into the system
through strategic initiatives and the MTA’s indispensable Capital Program.
This summer, each of our operating agencies completed a five-year roadmap for
introducing new asset management practices and improving existing processes and
technologies that will help them make more precise, transparent, and evidence-based decisions. The entire
roadmap consists of a portfolio of nearly 250 projects aimed at reducing risk and improving safety, reliability,
service, and performance. Some of these projects are agency-specific and some are enterprise-wide, but all
of them contribute to achieving the EAM vision and initiatives outlined in this document. The Asset
Management Improvement Strategy summary provides direction to the agencies on how to achieve the
EAM vision by implementing initiatives that align strategic, tactical, and operational improvements in the
short-, medium-, and long-term.
All Agency Presidents are fully supporting and providing the leadership necessary to guide implementation at
each agency. In this journey, all efforts will be coordinated by the Asset Management Coordinating
Committee, which has representation from all agencies, and will be directed by the MTA EAM Program Office.
With traditional funding sources drying up, we need to make our operations and maintenance as efficient and
effective as possible. We need to do everything we can to reduce our costs—everything we can to
demonstrate that we’re using our subsidies responsibly and delivering results. That’s exactly what EAM will
help us do.
I ask all of you to take this opportunity to become aware of the upcoming changes, and be ready to help
make this exciting vision a reality.
Thomas F. Prendergast
Chairman and CEO
Metropolitan Transportation Authority
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4.
5. Message from the Executive Sponsor
Three years ago, we embarked on a journey towards asset management excellence.
Our initial goal was to build a general awareness among our stakeholders of what asset
management is and how it will benefit the MTA and its sister agencies. Leading the
charge, the agencies are exploring new ways of inspection, maintenance planning,
reliability-based maintenance and investment planning. These endeavors have
demonstrated the value that asset management has to offer to front line employees,
managers and senior leaders. We have also seen a glimpse of our organization’s ability
to improve business processes and adopt new technology.
Asset management is more than maintenance and improved technology; it is also about investing in people,
improving processes, managing the use of quality information as well as meeting government mandates such
as Moving Ahead for Progress in the 21st Century (MAP 21) and international standards such as ISO 55000.
Asset management is a big change in how we do things. It will move us away from our siloes to transparent
business processes and information-rich analysis. We will develop support tools that will not only improve the
overall quality of work and work life, but also empower employees with information to make better informed
decisions. In response, MTA employees are expressing a growing desire to introduce new technology, embrace
mobility, and implement decision-making support tools to better manage our complex business needs.
Today we stand at the cusp of a more unified MTA. Every day the MTA faces pressures to be more effective in
the management of nearly one trillion dollars in assets. In order to accomplish this, the MTA must better
prioritize capital and operating maintenance investments and sequence delivery to produce immediate results
while improving the infrastructure for carrying capacity and resilience.
Wanting improvement is not enough to produce successful outcomes. So each agency has developed an
improvement roadmap aligned with the goals of this Asset Management Improvement Strategy so we can
strategically introduce new capabilities that deliver maximum value. Moreover, each agency is developing its
staff capabilities by learning, training, and sharing asset management practices and business processes. I’d
like to acknowledge those champions of change, from supervisors in the field and shops, to chief officers
responsible for assets, and the executive team that are leading our journey to asset management excellence.
This is only the beginning of our journey to meet our goal of being “One MTA”.
Craig Stewart
Senior Director
MTA Capital Programs
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6.
7. Acknowledgements
Special acknowledgment to the Agency Presidents and the Asset Management sponsors, program managers
and support for their ongoing leadership role in establishing the EAM Program at each agency.
Presidents
James Ferrara, Interim President, NYCT
Joseph Giulietti, President, MNR
Michael Horodniceanu, President, MTA CC
Darryl Irick, President, MTA Bus Company
Patrick A. Nowakowski, President, LIRR
Donald Spero, Acting President, B&T
Program Executive
Michael Salvato, Executive Program Manager, MTA HQ
Program Sponsors
Mildred Chua, Assistant Vice President, B&T, Acting VP and CFO
Uday Durg, Program Executive, MTA CC
Collette Ericsson, Chief Officer, NYCT Buses/MTA Bus
Alexandra Infeld, Chief of Staff, NYCT
Sally Librera, Vice President and Chief Officer, NYCT Subways
Elisa Picca, Chief Planning Officer, LIRR
Kim Porcelain, Vice President, MNR
Program Managers
Brenden Duffy, Senior Manager, LIRR
Frank Knowlton, Program Manager, NYCT
David Kraft, Director, B&T
Jorgen Pedersen, Director, MTA HQ
Support
Angel Barbosa, Chief Procurement Officer, MTA BSC
Priscilla Cheung, Manager Systems Development, MTA IT
Paul Fetter, Director Systems Development, MTA IT
Michael Fucilli, Auditor General, MTA HQ
Sydney Gellineau, CIO, MTA IT
Wael Hibri, Senior Director, MTA BSC
Douglas Johnson, Director Budget, MTA HQ
David Koehler, Deputy CIO - Applications, MTA IT
Heather McLaughlin, Senior Project Manager, MTA IT
Special recognition to Lisbeth Concho for her instrumental role in developing the full version of this document
and for working with the agencies to include their input.
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8.
9. Enabling Asset Management to become an Enterprise endeavor
In October 2013 the Chairman formally announced the creation of the MTA Enterprise Asset Management
(EAM) Program as an MTA-wide effort. The mandate required each agency to set up its own EAM Program
under the leadership of the Program Executive and the Asset Management Coordinating Committee (AMCC),
the governing body that has overseen and coordinated all asset management initiatives since March 2013.
The vision of the EAM Program is to enable all levels of the organization to make more informed, transparent
and data-driven capital and operating decisions, to achieve better utilization of our resources and, ultimately,
lower the cost of keeping our systems running while improving the safety and reliability of our operations. To
get there it will be necessary to take incremental steps to mature from the basic asset management
capabilities we have today to an optimal level. This will entail:
• Aligning our corporate goals with decisions made at all levels of the organization
• Improving existing business processes
• Implementing new appropriate technologies and tools
• Integrating existing information systems
• Developing new capabilities
While these organizational changes need to be supported at the executive level and enabled by the tactical
level, those at the operational level are critical to successfully implementing change.
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10.
11. Achieving the MTA goals through better asset management
The MTA is fully committed to delivering safe and reliable service while focusing relentlessly on customer
service, responsibly managing funds, and continuously improving capital assets. With such commitment in
mind, the EAM Program will introduce improved asset management practices that will contribute to achieving
the following organizational drivers:
Safety – Introduction of asset criticality to prioritize inspections and maintenance work on those assets and
components that are safety critical.
Reliability – Identification of the right maintenance regimes, replacements and renewals for specific asset
classes and their components; failure and cost analysis, and utilization of more sophisticated approaches.
Cost-Effectiveness – Adoption of a whole-life costing approach to enable quantification of all expenses
associated with the total cost of ownership of an asset, and balancing these costs against the value an asset
provides.
Customer Experience – EAM will help increase customer satisfaction through reduction of service
disruptions due to emergency maintenance work and more effective scheduling of maintenance activities.
Resiliency – Through improved risk management practices, EAM will help the agencies to be better prepared
to resist, respond and recover from the impact of natural disasters and the consequences of climate change.
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12.
13. MTA Asset Management Improvement Strategy
The Asset Management Improvement Strategy defines, at a high level, the strategic initiatives required to
accomplish the EAM vision, establish the program direction, and enable each agency to define its own path to
achieve improvements. While recognizing each agency is at a different level of maturity and their priorities are
also different, we encourage each agency to integrate and prioritize the initiatives grouped under the following
five areas:
1. Strategic Direction
The goal of these initiatives is to establish clear direction, aligned objectives and strategies for a consistent
approach to asset management.
Setting clear objectives, strategies and controls is key for driving the Program and ensuring the approach to
asset management is consistent across the organization.
1.1 Establish clear corporate objectives and metrics that provide alignment throughout the
organization.
This will enable evaluating and managing performance across asset classes and different sections of the
system, adjusting short and long-term goals, strategies and plans, justifying and prioritizing investment
decisions, measuring improvements, and assigning accountabilities.
1.2 Development and approval of the core asset management documents at the HQ level.
a. The Asset Management Policy will establish the principles for managing the EAM Program.
b The Strategic Asset Management Plan will establish corporate asset management objectives and
define how these are going to be achieved.
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14. c. The Asset Information Strategy will define the key activities for standardizing and managing asset
information following an enterprise approach.
d. The Program Management Master Plan will set out the structure to manage the program including
governance, roles and responsibilities, program and project controls, etc.
e. The Asset Management Manual will provide the guidelines and standards for key asset management
processes.
1.3 Establish agency strategies for the short, medium and long-term.
a. The Asset Management Improvement Plan will define the improvement projects that the agency will
undertake, and their alignment with the program and the corporate objectives.
b. The Asset Management Strategy will describe the agency’s asset management objectives, metrics and
targets for performance, the strategies to meet service demands, and its financial commitments for
capital, operations and maintenance activities.
c. The Network Asset Management Strategy will define the approach for specific sections of the system,
thus enabling prioritization of investments within a section and across each agency.
d. The Asset Class Strategy will set out the approach on what needs to be done in order to meet medium
and long-term objectives and performance targets specific to each asset class.
e. The Asset Class Plans will describe the implementation of the Asset Class Strategies in terms of when
and where maintenance and capital replacement should be carried out along with budget estimates of
labor, material and other costs.
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15. 2. Planning, Decision-Making and Risk Management
The goal of these initiatives is to enable alignment of planning, decision-making and risk management at all
levels of the organization.
The MTA PMO has developed a planning framework to align objectives, decision criteria, business processes
and priorities across the organization. This will support evidence-based decision-making and enable
managing groups of assets over their lifecycles and the associated performance, costs and risks.
Five-level planning framework
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16. 2.1 Align planning processes across all planning levels.
To make the framework effective and adaptable to each agency’s environment, it will be necessary to review
existing business processes, make the necessary improvements at each level, and specify the associated
information requirements, responsibilities and planning refreshment cycles.
2.2 Set-up an integrated performance and risk management approach.
The MTA PMO and the agencies need to adopt a consistent framework for evaluating, tracking and reporting
business, network and asset performance, and establishing a benchmark to measure improvements. The
performance metrics must align with the MTA and agency objectives, and must be clearly linked to
performance targets. The risk methodology should define which types of risk can be avoided, reduced,
tolerated, transferred, or accepted, as well as the escalation or cascading mechanism to ensure that
decisions on risks are made at the appropriate level in the organization.
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17. 3. Asset Maintenance, Reliability and Project Delivery
The goal of these initiatives is to enable implementation of practices and systems that improve maintenance
planning and asset reliability.
The execution of maintenance processes and procedures that ensure safe, consistent and reliable asset
operations is fundamental to achieve organizational efficiencies, reduce waste and maximize performance.
3.1 Establish preventative and predictive maintenance and reliability strategies for all critical
assets.
Asset strategies should be established to determine the optimal mix, frequency and timing of maintenance,
renewal, replacements and enhancement activities to address lifecycle cost, performance and risk objectives
specific to each asset class. Preventative and predictive maintenance programs should be written for assets
and asset classes. These should be reliability-focused and dynamic, allowing adjustments to address
changing maintenance needs across an asset’s whole life.
3.2 Support maintenance and reliability improvements through utilization of technologies.
Establishing a data-based maintenance program requires a disciplined, consistent and comprehensive
approach to collection of asset condition status. Implementation of mobile and proven condition monitoring
technologies, in conjunction with a user-friendly and fully functional EAM information system, will enable
achievement of asset reliability and availability goals and better asset lifecycle decision-making.
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18. 3.3 Improve integration, commissioning and lifecycle management through utilization of RAMS
(Reliability, Availability, Maintainability and Safety) analysis, building information, configuration
management and Lean Practices during design and construction.
Approximately 95% of an asset’s lifecycle maintenance cost is fixed during the asset’s design and
construction. A structured approach to new asset design utilizing industry best practices is fundamental to
the design of assets and the development of preventative maintenance programs.
3.4 Optimize supply stream and parts availability through the integration of supply chain and
preventative maintenance activities.
Supply stream strategies must be established early at the design and construction stage to support planned
maintenance activities, minimizing maintenance dwell time and increasing asset availability. Forward-looking
logistic planning should be employed to ensure integrated project delivery, planned maintenance efficiency
and minimized waste.
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19. 4. Asset Information Strategies and Systems
The goal of these initiatives is to implement and integrate EAM information systems to get the right
information to the right people at the right time.
Central to realizing the benefits from asset management is the capture, availability and utilization of adequate
asset data and information as a foundation for optimized decision-making. The implementation and
integration of EAM information systems across each agency will enable the standardization and unification of
asset information, reduce the number of siloed information systems and interfaces, and support consistent
improvements in asset management maturity.
4.1 Develop an asset information strategy that supports the vision of having a standardized and
unified source of truth to manage assets over their lifecycle.
The strategy should integrate: asset information organization and management, governance and assurance,
data definition and management, process development, analysis, reporting and business intelligence, and
system implementation and management.
4.2 Develop an MTA-wide EAM information system strategy that supports the realization of
process improvements.
The strategy should address the replacement, upgrade and integration of many aging information systems
while providing basic asset management system capabilities. A basic EAM information system must be able
to support: work planning, work management, labor and material management, financial management, and
performance management and reporting.
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20. 4.3 Develop an asset registration strategy to support standardized data capture.
A standard registration business process should be defined MTA-wide for all asset classes.
The recommended framework for creating the asset register consists of three main steps:
a. Development of the asset hierarchy
b. Definition of data standards
c. Definition, planning, validation and reporting processes for data capture.
4.4 Develop an enterprise architecture to integrate existing and required business functions,
technologies and applications, and develop the roadmap for implementation of the EAM
information system.
To understand and communicate the relation between all the elements that support asset management
activities, it is necessary to develop an enterprise architecture that documents the internal and external
interactions of these elements to a degree that is simple to understand.
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21. 5. Asset Management Capabilities and Culture
The goal of these initiatives is to develop and enable the leadership, competencies and change management
required to adopt asset management as part of our culture and deliver our goals.
Strong leadership commitment to communicate and support EAM initiatives is critical to achieving program
success and buy-in across the organization. Affecting change at an individual level through stakeholder
engagement, active communications, coaching and training, is essential to attaining the objectives at a large
scale.
5.1 Instill the asset management philosophy through effective leadership, management and
communications.
A transparent and consistent two-way communication is fundamental for effective leadership and
management. Leaders at every organizational level should ensure that individuals are not only aware of but
also invested in the EAM projects in their area of responsibility. Individuals should understand the goals of the
EAM initiatives, how they individually contribute to achieving those goals, and the benefits to be realized from
EAM projects.
5.2 Define the roles, responsibilities and competencies required to support the program and
ongoing asset management activities, and ensure these resources are available.
The definition of clear roles, responsibilities, performance standards and technical skills is necessary to clarify
accountabilities at different levels of the organization, and ensure alignment with objectives and business
practices. Some of the core asset management competencies include: asset condition management,
performance management, reliability engineering, planning and scheduling, spares management, preventive
maintenance, human capital management, change management, computerized maintenance
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22. management systems, and information and data management. Revisions to agency training programs will be
necessary to ensure those competencies are addressed with appropriate training support utilizing both
internal and external resources. In order to leave a lasting legacy, the program must develop processes and
procedures that reside with the organization and not within individuals. These processes and procedures will
be the lasting information that will carry the program for decades to come, as many individuals will move
around and out of the organization as the program evolves.
5.3 Introduce a participatory, systems thinking culture that allows the workforce to take
ownership and work collaboratively to deliver effective asset management and continual
improvements.
To ensure the success and sustainability of the EAM program the workforce must take ownership of and pride
in what they do, and understand how their job connects to the organizational objectives and ultimately to
providing exceptional service to our customers. To foster a culture of continual improvement, it is necessary
to accept failure is inherent in the operation of our assets, and therefore, mitigation strategies need to be in
place to be proactive in our approach to managing our assets. It is also necessary to encourage the
workforce to make decisions using fact-based information and analysis, innovate and test the benefit of
adopting new processes and technologies, and actively share their knowledge with peers and the new
generations.
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23. Program Benefits
The implementation of the EAM Program is a multi-year effort that will enable delivery of direct and indirect
benefits. The direct benefits will include:
a. Operations – reduced rework, more efficient use of operating investments and reduced inventory.
b. Asset Utilization – improved reliability and availability, reduced cycle time and more effective spare
strategies.
c. Capital – extended asset lifecycle, improved asset commissioning and warranty recovery.
The indirect benefits will be achieved through the realization of the direct benefits. These will involve:
a. Performance – enhanced safety, service availability and customer experience.
b. Risk Reduction – improved spares management and reduced insurance premiums.
c. Transparency – repeatable work practices, a single source of information, business intelligence and
open data.
d. Sustainability – a more resilient infrastructure that is economically, socially and environmentally
sustainable.
These benefits will be measured at different levels of the organization to monitor progress towards achieving
MTA and agency goals and by establishing a balanced set of KPIs and linking such indicators to the corporate
and agencies objectives. This will allow management to periodically define and adjust short- and long-term
goals, the corresponding strategies and plans, and continuously motivate their staff to achieve operational
excellence.
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24.
25. Asset Management Maturity
Each agency is at a different level of maturity in the ISO 55001 maturity scale. The EAM program goal is to
have a competent and fully established asset management system in place and evidence that all the core
elements of an asset management system exist and are linked. Once the competent maturity level is
achieved, new strategies will be developed to reach the higher maturity levels. The following figure illustrates
the ISO 55001 maturity scale.
Adapted from ISO 55001 Maturity Scale
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26.
27. Conclusions
Managing a $1 trillion asset portfolio 24 hours a day, 7 days a week, is costly and complex. Over the past 33
years, the MTA Capital Program has allowed us to invest more than $115 billion on maintaining, restoring,
improving, and expanding our system. However, obtaining full funding to address the investment needs of our
transportation network is one of our biggest challenges. This is also one of the reasons why we are so
committed to better asset management. It gives us the tools to move from a reactive to a preventative and
predictive approach, allocate our efforts and investments in the areas where these are most critical, and
demonstrate that we are making the best decisions with our limited funding.
To have a successful asset management system in place, the MTA and the agencies will need to embrace
asset management best practices as a way of doing business and ensure alignment between objectives set at
the top of the organization and capital and operating decisions made at all levels. We will also need to
promote a collaborative environment where capital, operations, engineering, technology and other supporting
functions work together and align their business processes and make them more transparent. In order to
support this philosophy, we need to start defining and aligning the MTA objectives, policies, strategies and
plans, and provide the organizational structure to support them.
Going forward, the MTA PMO and the agencies will develop an Improvement Plan to identify the best
sequence and timing of the improvement projects that need to be undertaken at different levels of the
organization. These projects have already been identified on an agency-by-agency basis. Now, it is our job
and commitment to ensure opportunities for synergies and collaboration are maximized across agencies, so
that we get the best value out of our investment.
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