Transportation Asset Management: Basics Speaker

1. Transportation Asset Management: Basics Speaker

2. “Transportation Asset Management is a strategic and systematic process of operating, maintaining, upgrading and expanding physical assets effectively throughout their lifecycle. It focuses on business and engineering practices for resource allocation and utilization, with the objective of better decision making based upon quality information and well defined objectives.” AASHTO Subcommittee on Asset Management What is Transportation Asset Management?

3. “As government providers and operators of transportation systems, we face an increasingly complex challenge of improving safety, mobility and the aesthetics of our highway system in an environment of constrained resources. Implementing an asset management approach is essential to ensure that we invest the public funding entrusted to us wisely, and that we minimize long-term costs in achieving our desired service level objectives.” Neil J. Pedersen, Administrator, Maryland State Highway Administration and Vice-Chair, AASHTO Subcommittee on Asset Management Why Transportation Asset Management?

4. Aging Infrastructure Growing Congestion Funding Shortfall Focus on System Performance Asset Management is Imperative National Context

5. Rebuilding America: A National Asset Management Program. The first of the 10 programs proposed by the Commission would put and keep the Nation’s infrastructure in a state of good repair in the most efficient and cost-effective manner possible. Report on the National Surface Transportation Policy and Revenue Study Commission:

6. Improved decision-making supported by policies, performance-based goals, performance measures, and appropriate service levels Decisions are based on accurate data, and sound engineering and economic analysis Long-term view of assets More robust management and monitoring systems How Does Transportation Asset Management Work?

7. Focus on the strategic goals of the agency, performance measures, and system performance All assets considered comprehensively Compare performance with desired performance measures Tradeoff analysis and life cycle performance used to support decision making Apply economics, business and engineering principles, needs assessment/public involvement, and risk assessment to manage assets and evaluate tradeoffs What Makes TAM Strategic?

8. What is the current state of my assets? What is my required level of service/ performance? Which assets are critical to sustained performance? What are my best “Operations and Maintenance” and “Capital Improvement” investment strategies? What is my best long-term funding strategy? Asset Management: Five Core Questions

9. Asset Management:Five Core 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?

10. Asset Management:Five Core Questions 2. What is my required level of service/ performance level? • What is the demand for services by stakeholders? • Are there regulatory requirements? • What is my actual performance?

11. 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? What are the consequences of failure? Asset Management:Five Core Questions

12. 4. What are my best “Operations and Maintenance” and “Capital Improvement” investment strategies? What alternative management options exist? Which are the most feasible for my organization? 5. What is my best long-term funding strategy? Asset Management:Five Core Questions

13. Set Target Level of Service/Performance Goals Develop Asset Inventory Condition Assessment, Failure Modes Determine Remaining Service Life Determine Life Cycle & Replacement Costs How to Develop and Implement a Transportation Asset Management Program

14. How to Develop and Implement a Transportation Asset Management Program (Continued) • Determine Business Risk • Optimize Operation and Maintenance • Optimize Capital Investment • Determine Funding Strategy • Build Asset Management Plan

15. Transportation Asset Management Overview Goals and Objectives Inventory and condition assessment Analysis of Options and Tradeoffs Preservation, Operations, Capacity Expansion Policies Budgets Expectations Decision-Making & Resource Allocation Feedback Implementation Monitoring and Performance Measures

16. Transportation Asset Management RESOURCES Preservation Operations Capital Improvement Safety Other

17. Planning process Initial goal setting Long-range planning TIP/STIP development Operation Preservation Maintenance Performance Measurement/Evaluation The Application of Transportation Asset Management

18. Have performance measures that guide investment decisions Adopt a ‘preservation first’ strategy for their investment priorities Moved away from a “worst first” investment strategy, and instead have adopted investment principles that are based on life cycle costing The most successful asset management programs:

19. Undertake scenario analysis showing the consequences on performance measures of various investment decisions Conduct an organizational self assessment as one of the most important starting points for implementing an asset management process Have an Asset Management champion The most successful asset management programs:

20. Link Asset Management to decision making Collect the right data for performance measures Develop and convey top management support and commitment Identify the individuals responsible for implementation Overcome resistance to change Challenges to Implementing

21. Maximizing highway service performance Minimizing life cycle costs Being more accountable Being better positioned to anticipate and secure needed funding Improving highway safety Matching service levels with customer expectations The agency using TAM will improve customer satisfaction by:

22. AASHTO Transportation Asset Management Guide and NHI course Asset Management Today website / community of practice: http://assetmanagement.transportation.org AASHTO Asset Management Subcommittee TRB Asset Management Committee Office of Asset Management, FHWA AASHTO-AGC-ARTBA Data Collection Guide AASHTOWare: Assetmanager NT and PT Other Resources Are Available