EVALUATION OF NEARTRANSPORTATION PRIVATE SECTOR ASSET MANAGEMENT PRACTICES

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EVALUATION OF NEARTRANSPORTATION PRIVATE SECTOR ASSET MANAGEMENT PRACTICES

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Railroad industry. Wisconsin Central. Union Pacific. TTX. Airline Industry. Midwest ... Example Union Pacific. Class I railroad. 33,000 miles of track in 23 states ... – PowerPoint PPT presentation

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Title: EVALUATION OF NEARTRANSPORTATION PRIVATE SECTOR ASSET MANAGEMENT PRACTICES

1
EVALUATION OF NEAR-TRANSPORTATION PRIVATE SECTOR
ASSET MANAGEMENT PRACTICES

U n i v e r s i t y o f I l l i n o i s
a t C h i c a g o
Urban Transportation Center

2
Outline

Research Team
Objectives
History
Approach
Case Studies
Findings

3
Research Team

University of Illinois, Chicago
Shaumik Pal
P.S. Sriraj
Sue McNeil
Tioga Consulting
Libby Ogard

4
Objectives

To document and synthesize asset management
experiences in private industry to encourage
public sector transportation agencies to draw on
lessons learned by these organizations, and to
assess critically their own approach to asset
management.

5
History

1996 Asset Management workshop included the
private sector
Documented case studies tend to be narrow
Researchers focus on differences rather than
similarities

6
Approach

Literature review
Development of interview questions
Identification of candidate case studies
Selection of case studies
Testing
Interviews
Revision
Synthesis

7
Interview Questions

Background about the industry and firm
Goals and objectives
Development of plans and programs
Data/ Information

8
Case Studies

Railroad industry
Wisconsin Central
Union Pacific
TTX
Airline Industry
Midwest Express
United Airlines
Information Services Division

Energy Sector
Xcel Energy
Great Lakes Transmission Company

9
Findings

Examples
Union Pacific
Xcel Energy
Summary
Comparison
Key messages

10
Example Union Pacific

Class I railroad
33,000 miles of track in 23 states
31, 551 million in assets (2001)
Assets
Locomotives, rail cars, highway tractors
Track
Right of way

11
Example Union Pacific - continued

Performance is integrated into every level of the
organization
There is a link between the condition of the
track and the customer
Performance measures are reported weekly by
geographic area as individual measures and an
aggregate

12
Example Union Pacific - continued

The performance measures are correlated to a
service delivery index and an index of customer
satisfaction. These measures in turn are linked
to revenue.
Individuals focus on six key questions that link
the individual actions to the asset management
goals.

13
Example Union Pacific - continued

Barriers to Asset Management lay in changing the
organizational culture and mindset to the new
form of accountability.

14
Example Excel Energy

Electricity and natural gas delivery company
3.2 million electric customers and 1.6 million
natural gas customers
12 states
6.4 billion in assets
Gas and electricity generation, distribution, and
transmission

Asset Owner

Service
Providers

Asset Manager
15
Example Excel Energy - continued

Asset management introduced in 2001 following
successful experience with Yorkshire Electricity
Focus separation of service providers from asset
managers
Key facilities are fixed or repaired the day
before they fail.

16
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17
Example Excel Energy - continued

Barriers to asset management include adjusting to
the major cultural shift adopted by the
organization and other operational barriers.

18
Summary
19
Comparison
20
Key messages lessons learned

Asset Management is a relatively new term for
what many businesses feel they have been doing
all along.
The key differences today
Functional integration
More data, more powerful analytical tools, real
time.
Deregulation
Customer focus

21
Implementation

Develop and maintain an accurate inventory
including location of assets, expected life,
condition of assets, inspection history, usage,
and improvements. Available to virtually all in
the organization.
Use of advanced technology and information
systems to support the asset management process.
Many have visual, graphics linked to mapping
software.
Relate asset management to overall objective of
the organization.
Functional teams are often formed for critical
projects.

22
Implementation - continued

Integrate the system objectives and departmental
objectives using performance measures of assets.
Where possible, link organizational performance
to individual performance through incentives and
rewards.
Relate asset management to other business
processes including the strategic planning
process.

23
Outreach

Ensure that all levels of the organization know
what asset management is.
Recognize that asset management is not a static
process.
Use related mandates (for example, safety or
accountability) to sell asset management.
Stress the role of asset management in the
efficient management and utilization of assets.
Key to corporate economic survival and investor
confidence.

24
Outreach - continued

Recognize the importance of information
technology in addressing asset management and
invest accordingly.
Establish effective communication between the
various stakeholders, and coordinate
decision-making and information between the parts
of the organization managing various asset
classes.
Reorganization of business units and internal
operating units to become more responsive and
efficient.
Develop appropriate and on-going education and
training covering all aspects of asset
management.