By
       Katie McCain
Wachs Water Services
    February 22, 2011
Agenda
 Industry Challenges
 Valve Operability
 High Risks/Costs of Taking No Action
 Asset Management
 Where To Start/Strategies
 Summary
Industry Challenges
 Aging infrastructure
 Reductions in manpower
 Experience/knowledge loss
 Deferred maintenance
 Funding gaps
 Increasing customer demands
 Supply availability
 Infrastructure security
What Is Valve Operability?
        Definition of Operability

   Initial Operability: Upon arrival, can
   the valve be found and easily operated
   by the crew?

    Right Here, Right Now…
Valve Operability Status Quo
     Based on 750,000 assessments
Low Operability =
Loss of System Control
  (Increases Levels of Risk)
Run to Failure - Strategy
         100%



                Reliability Threshold

                    Pain
Operability




                  Run to Failure
                 Time
Run To Failure
                        (example)
Buy a                   Buy a                     Buy a
CAR                     CAR                       CAR

            Run to Failure             Run to Failure
Reliability Threshold




 $25,000                     $25,000                    $25,000
Default “Run to Failure” A.M. Strategy
 Is easy/requires no action/abdicates
 responsibility
 Is great for awhile but eventually causes service
 disruptions
 Service disruptions cause customer dissatisfaction
 Customer dissatisfaction causes reactive
 responses not planned activities
 Never get caught up/never get control of the
 system
High Risks/Costs of Taking No
Action
 Overtime and repeat visits
 Unnecessary replacements
 Property damage/restoration cost
 Delays in locating valves
 Loss of water
 Loss of life
 Injuries to workers and citizens
 Lawsuits from injured parties (medical and property)
 Continued catastrophic events
High Risks/ Costs of Taking No
Action (cont.)
 Keeps your utility in a reactive mode, chasing
 emergencies, trying to keep up
 Low operability = loss of system control
 Water quality challenges
 Lack of fire protection
 Lack of ability to isolate contamination
 Major break containment issues
 Business interruption/transportation interruption
 Interruption of service/customer complaints
 The current situation is not sustainable
Asset Management
Start by answering five key questions
Five Key Questions
1. What is the current state of my assets?
      What do I own? Where is it?
      What condition is it in?
      What is its remaining useful life?
      What is its remaining economic value?
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. 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/refurbish/replace?
      What are the consequences of failure?
4. What are my best O&M and CIP investment strategies?
      What alternative management options exist?
      Which are most cost effective for my organization?
5. What is my best long-term funding strategy?
What is the
                                                               required level
     What is the current state of my assets?                    of service?

                                 Determine      Determine
   Inventory         Assess                                       Set Target
                                  Residual       RRR $
     Assets         Condition                                        LOS
                                    Life        & Timing




     Assign         Determine     Determine
                                                  Fund
   BRE Rating      Appropriate   Appropriate                     Build the AMP
                                               Your Strategy
   (Criticality)   Maintenance       CIP



Which assets       What are the best O&M         What is the best
are critical to     and CIP strategies?         funding strategy?
   sustain
performance
      ?
Reliability Centered Maintenance
                             (example)
Buy a
                           Oil      Trans
CAR Wipers               Change     Fluid        Tune
                                                 Up
              Air Pressure                                       Flush
                             Wiper Fluid                Struts
                                            Battery



 Reliability Threshold

   100%




                          Sustainability Execution
                             Time
Where to Start/Strategies
     • Total system assessment
         program approach
     • Large & Critical Valves
          core of the system
     • Representative survey
          state of the system
     • Specific areas
         section of the system
Summary
 The time for action is now, before there is an
 emergency
 Look at your system and identify the most critical
 assets in it
 Start by inventorying and rehabilitating those assets
 A long-term approach to valve maintenance will set
 the utility up for future generations
 There are proven solutions
 Solutions fund themselves
 Start with valves
Katie McCain
 Wachs Water Services
    214-707-8120
kmccain@wachsws.com

How Utilities Get Control of Their Distribution Systems

  • 1.
    By Katie McCain Wachs Water Services February 22, 2011
  • 2.
    Agenda Industry Challenges Valve Operability High Risks/Costs of Taking No Action Asset Management Where To Start/Strategies Summary
  • 3.
    Industry Challenges Aginginfrastructure Reductions in manpower Experience/knowledge loss Deferred maintenance Funding gaps Increasing customer demands Supply availability Infrastructure security
  • 4.
    What Is ValveOperability? Definition of Operability Initial Operability: Upon arrival, can the valve be found and easily operated by the crew? Right Here, Right Now…
  • 5.
    Valve Operability StatusQuo Based on 750,000 assessments
  • 6.
    Low Operability = Lossof System Control (Increases Levels of Risk)
  • 7.
    Run to Failure- Strategy 100% Reliability Threshold Pain Operability Run to Failure Time
  • 8.
    Run To Failure (example) Buy a Buy a Buy a CAR CAR CAR Run to Failure Run to Failure Reliability Threshold $25,000 $25,000 $25,000
  • 9.
    Default “Run toFailure” A.M. Strategy Is easy/requires no action/abdicates responsibility Is great for awhile but eventually causes service disruptions Service disruptions cause customer dissatisfaction Customer dissatisfaction causes reactive responses not planned activities Never get caught up/never get control of the system
  • 11.
    High Risks/Costs ofTaking No Action Overtime and repeat visits Unnecessary replacements Property damage/restoration cost Delays in locating valves Loss of water Loss of life Injuries to workers and citizens Lawsuits from injured parties (medical and property) Continued catastrophic events
  • 12.
    High Risks/ Costsof Taking No Action (cont.) Keeps your utility in a reactive mode, chasing emergencies, trying to keep up Low operability = loss of system control Water quality challenges Lack of fire protection Lack of ability to isolate contamination Major break containment issues Business interruption/transportation interruption Interruption of service/customer complaints The current situation is not sustainable
  • 13.
    Asset Management Start byanswering five key questions
  • 14.
    Five Key Questions 1.What is the current state of my assets? What do I own? Where is it? What condition is it in? What is its remaining useful life? What is its remaining economic value? 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. 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/refurbish/replace? What are the consequences of failure? 4. What are my best O&M and CIP investment strategies? What alternative management options exist? Which are most cost effective for my organization? 5. What is my best long-term funding strategy?
  • 15.
    What is the required level What is the current state of my assets? of service? Determine Determine Inventory Assess Set Target Residual RRR $ Assets Condition LOS Life & Timing Assign Determine Determine Fund BRE Rating Appropriate Appropriate Build the AMP Your Strategy (Criticality) Maintenance CIP Which assets What are the best O&M What is the best are critical to and CIP strategies? funding strategy? sustain performance ?
  • 16.
    Reliability Centered Maintenance (example) Buy a Oil Trans CAR Wipers Change Fluid Tune Up Air Pressure Flush Wiper Fluid Struts Battery Reliability Threshold 100% Sustainability Execution Time
  • 17.
    Where to Start/Strategies • Total system assessment program approach • Large & Critical Valves core of the system • Representative survey state of the system • Specific areas section of the system
  • 18.
    Summary The timefor action is now, before there is an emergency Look at your system and identify the most critical assets in it Start by inventorying and rehabilitating those assets A long-term approach to valve maintenance will set the utility up for future generations There are proven solutions Solutions fund themselves Start with valves
  • 20.
    Katie McCain WachsWater Services 214-707-8120 kmccain@wachsws.com