Transportation Asset Management The New Business Model for - - PowerPoint PPT Presentation

by Michael Bridges, P .E. Undersecretary – Office of Management and Finance Louisiana Department of Transportation and Development

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Transportation Asset Management

The New Business Model for Transportation Agencies

Presented at the National Transportation Training Director’s Conference New Orleans, LA October 12,2011

Contents

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• What is Transportation Asset Management?
• Why should you care?
• Training Resources
• TAM at LADOTD

What is Transportation Asset Management?

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 Is it a….

 Planning System?  Strategic Management System?  Performance Management System?  Work Order System?  Asset Inventory System?  Budgeting System?

 It’s all of these and more.

Perspectives on TAM

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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.

(NCHRP Report 632)

Management Engineering Economics Finance Marketing Leadership Culture …the business of infrastructure …

TAM covers a wide portfolio of assets

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 Pavements  Bridges  Tunnels  Other structures such as retaining walls, culverts, sign structures, etc  Curbs, channels, dams, and drainage facilities  Barriers, railings, and medians  Road signs  Pavement markings  Traffic signals and control equipment  Intelligent transportation systems (ITS)  Street lighting  Sidewalks  Bicycle lanes and paths on the right of way  Parking facilities such as pay and display machines, parking meters  Rest areas  Maintenance buildings and equipment  Landscaping

The importance of infrastructure

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 Infrastructure underpins national economies and supports

lifestyles

 It’s often taken for granted by the community until it fails  It represents a major investment by communities progressively

built up over a long period

 It provides a platform for economic growth and social

development

TAM principles are intended to stimulate strategic thinking about transportation infrastructure

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 What do we want to accomplish, and why?  Do we need to change the current business model to achieve

these objectives?

 What resources are available to succeed in this mission?  How do we measure success?

TAM Business Model – Five Core Questions

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 What is the current state of my assets?  What are my required levels of service and performance

delivery?

 Which assets are critical to sustained performance delivery?  What are my best investment strategies for operations,

maintenance, replacements and improvement?

 What is my best long-term funding strategy?

FHWA Multisector Asset Management brochure

Evolution of TAM in the US

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Pavement Management Systems used in some agencies Initiation of Pontis BMS effort by FHWA A few custom bridge management systems in place Program management approaches used by a few agencies ISTEA, federal transportation authorization requires six management systems FHWA creates Office of AM, AASHTO creates subcommittee on AM Many agencies initiate management system efforts – most with limited success Interest in AM grows in state DOTs as they face growing needs and limited resources AM Guide Vol. 1 project initiated Performance management growing in importance – federal reauthorization, AASHTO SCOPM ERP implemented with TAM integrated or at least architected AM Guide Vol. 2 project initiated Greater use of AM principles in everyday DOT activities – policy link to decisions, PMs, data mgt Greater use of pavement and bridge management systems in state DOTs 1980’s 1990’s 2000’s

Today’s Challenges

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Grow ing Travel Volume and Congestion Aging Infrastructure Networks Increasing Use of Technology to Solve Problems Limited Financial Resources Grow ing Pressure Nationally and Locally for Performance and Accountability

TAM will assist agencies meet the challenges

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 Greater accountability to the public and funding agencies.  Maximizing use of resources within a highly constrained funding

environment.

 Linking investment levels to infrastructure condition and

transportation system performance.

 Preserving assets and improving safety in the face of growing

impacts and costs of asset deterioration.

 Public expectations for more sustainable transportation

solutions.

Surface Transportation Authorization Act is coming

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 Achieve national objectives  Establish local

transportation plans

 Improve project delivery  Greater transparency,

accountability, oversight, and performance measures

Will Performance Measures be in the Next Transportation Bill?

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 If so…

 How will we measure?  What will we measure?  Will there have to be a new system of reporting?  What will be the consequences for failure?  How can I insure that my organization is successful?

 One solution would be to use the principles of

Transportation Asset Management

TAM is a resource for responding

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 Clear federal role and national objectives  Consolidate and simplify programs  Performance standards and accountability measures  Expand mobility and access for people and goods  Improve liveability and environmental sustainability of

communities

 Improve efficiency of federal programs and delivery of projects

TAM shows how to realize the benefits

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 TAM enables better use of existing funds – by better

quantifying current and future performance and optimizing the agency’s decisions.

 TAM improves agency competitiveness for limited funds – by

improving the agency’s credibility, and its knowledge of the long term needs of assets.

 TAM helps build constructive political relationships – by

providing hard information that can be readily understood.

Why should Transportation Training Professionals care?

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Most Transportation Agencies Need Help with Implementation of a TAM Business Model

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 Some agencies have mature well-developed TAMPs.  Other agencies have mature pavement and bridge

management systems but have no TAMP to link them.

 Some agencies are in the “emerging” stage  Some agencies don’t see the point  Change management and training is critical

Agency Training Directors are in a unique position to help

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 Access TAM resources  Set up Structured training courses  Provide facilitated sessions to educate and organize  To help drive the change

TAM Resources

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AASHTO Asset Management Guide – Volumes 1 and 2

 TAM Guide Volume 1 was released in 2003 and was used to

develop the NHI Course on Asset Management.

 TAM Guide Volume 2, “A Focus on Implementation” was the

result of the NCHRP 08-69A Research Project started in 2008 and completed in the Spring of 2011

 The NHI course on TAM is presently being updated to

incorporate changes in nomenclature reflected in Volume 2.

 Additional NHI course(s) are in development

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Intended audience for TAM Guide

 User groups:

 Federal Highways Administration  State Departments of Transportation  Local planning organizations, and transportation practitioners  Decision makers

 Other potential users:

 Consultants  Software and tool developers  Educators  Researchers

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How can the Guide be used?

 As a modular, resource document  As a sequence of implementation steps  For knowledge transfer and bridging the gaps

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AASHTO TAM Guide Volumes 1 and 2 are interlinked

Management, leadership, and culture Self- assessment Strategic action plan for improvement Implement improvements Goals and

• bjectives

Planning and programming Program delivery System monitoring and performance Information and analysis Introduction Chapter 1 Set direction for TAM Chapter 2 Align the organization Chapter 3 Develop a TAM plan Chapter 4 Strengthen enabling processes Chapters 5, 6, 7 Strengthen information systems and data Chapter 8 Identify TAM maturity level and gaps Appendices and case studies Review TAM principles and practices Business strategy TAM implementation Part 1 Part 2

TAM Guide Volume I TAM Guide Volume II: Focus on Implementation

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TAM Guide 2 road map – 14 steps to implementation …

Part One Part Two

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… plus case studies

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TAM Guide shows how to tie funding to performance based outcomes

 TAM helps move away from formula based funding allocation

to performance based

 TAM ties performance based levels of service to agency

• bjectives

 Define performance outcomes  Set LOS  Make program decisions  Optimize use of funds to achieve performance objectives

 Measurable outcomes that can be tied to the delivery of

annual plans and programs

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Why should a DOT use the TAM Guide?

 Interested in how TAM can be of benefit – but not sure whether

it’s worthwhile or what to do first.

 Preservation / maintenance financial needs and new investment

are poorly linked, organizational issues to address.

 Want to be able to better allocate resources and funds over the

long term

 Have a small number of areas to focus on, for example, risk,

performance measurement, predictive modelling, but not sure how to best tackle them

 Have effective asset management systems in some areas (e.g.

pavement management) – but aware of the need to have systems and data for other assets as well

 Aspire to be best in the class

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Transportation Asset Management at LADOTD

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TAM at the LADOTD

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 LADOTD has many mature TAM Systems

 Bridge Management System  Pavement Management System  Highway Priority Program  Strategic Plan  Others

 LADOTD does a very good job with the overall maintenance

and operations of its infrastructure system

 However, there is no written TAMP to insure that all these

systems support the agency goals and objectives or to measure the progress towards their accomplishment.

TAM Implementation Action Plan

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 Identify an executive champion  Get top level support  Administer TAM Assessment Questionnaire from Volume 1  Conduct NHI course on TAM  Organize TAM steering committee  Conduct NHI follow-up course(s)  Facilitate the development of a TAMP  Execute the TAMP  Measure outcomes and revise TAMP at periodic intervals

TAM Resources Are Available

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 AASHTO Asset Management Subcommittee

http://www.transportation.org/?siteid=95

 Asset Management Today website / community of practice:

http://assetmanagement.transportation.org

 AASHTO Asset Management Guide Volume 1

http://downloads.transportation.org/amguide.pdf

 AASHTO Asset Management Guide Volume 2 (draft):

http://planning.transportation.org/Pages/Publications.aspx

 FHWA Office of Asset Management:

http://www.fhwa.dot.gov/infrastructure/asstmgmt/index.cfm

 TRB Asset Management Committee

http://144.171.11.40/cmsfeed/comm_detail.asp?id=3038

Questions ??

Michael Bridges, P .E. michael.bridges@la.gov (225) 379-1270

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