Title: Building an Asset Management Mindset by Charles J' Nemmers P'E' University of MissouriColumbia Sept'
1Building an Asset Management Mindset by Charles
J. Nemmers P.E. University of
MissouriColumbia Sept. 23, 2001 Madison, WI
- Sell Why Worst First Is Worst
- Answer QuestionWhy Should I Care?
- Implement Asset Management
2Why Worst First is Worst
- Comments on how to build an effective public
works infrastructure program -
3Worst First occurs because
- Deferred maintenance
- No Ribbon Cutting
- Funding / budgets tilt toward new const.
- Easy to sell - lots of roads in poor shape
4But Worst First
- Costs more - 6X more
- Drags the whole system down
- Is difficult to recover from
- Is a difficult concept to counter
5Maintenance
- Routine
- Reactive
- Preservation / Preventive
6Build
- Replace / Reconstruct (improve
structural condition) - Expand / New Facilities (add
new capacity)
7Original Pavement
Prevention Trigger
Pavement Condition
Optimal Timing
RehabilitationTrigger
Time/Traffic
8Do-Nothing
Do-Nothing
Current Condition
Repair
Current Condition
Distress Point
Preventive Maintenance
Distress Point
50
50
0
0
Time
Time
0
0
Life Extended
Fix Life Design Life
Fix Life
From Michigan DOT -- Galehouse
9Current Condition
40
19
17
10
8
6
I (0-2)
III (8-12)
II (3-7)
IV (13-17)
V (18-22)
VI (23-27)
(years) Pavement Remaining Life Categories
10Ideal Condition
20
18
18
17
16
11
I (0-2)
III (8-12)
II (3-7)
IV (13-17)
V (18-22)
VI (23-27)
(years) Pavement Remaining Life Categories
11Reconstruction Strategy(25 Year Fixes)
12Combined Reconstruct and Rehab Strategies(15, 20
25 Years Design Life)
13Combined Reconstruct, Rehab, andPreventive
Maintenance Strategies
14Keys to Success (from GaDOT)
- Fix pavements BEFORE they are broken (use cracks
not ride) - Budget fund Preventive maintenance
- Shorten the time between assessment and
maintenance - Build them excellent the first time
15Why Should I Care ?
- gt ASCE Report Card
- gt GASB34
- gt It makes sense
-
16ASCEs Report Card
- 12 infrastructure categories (roads, schools,
dams, water systems,) - Combined grade of D
- Needs are 1,300,000,000,000 over next five years
17GASB 34 Objective
- To make government accounting more like private
sector accounting - dump truck example
- Defined Infrastructure Assets
- roads
- bridges
- water and sewer systems
- drainage systems
- dams, tunnels, ...
18In a Nutshell
- Governments generally dont depreciate their
assets and the private sector does, but now the
rules have changed !! - www.rutgers.edu/accounting/raw/gasb
19GASB 34 gives 2 options
- 1) Depreciate
- 2) Modified Approach
20The key to meeting GASB 34 using the
Modified Approach is having an Asset Management
System
21Asset Management
- Dont want to not do it
- Karen Miller
- Boone County Commissioner
22Asset Management Sys.
- Inventory of assets
- Condition assessment of assets
- Annual dollars needed to maintain and preserve
the assets to the level established by the
jurisdiction
23Definition
- Asset Management is the systematic process of
maintaining, upgrading, and operating physical
assets cost-effectively. - Asset Management is a tool for decision making.
- Asset Management creates a framework for long and
short term planning.
24Process
- Inventory Assets
- Condition Analysis
- Performance Prediction
- Scenario Generation / Mgt. Alternatives
- Decision Analysis
- Management Reporting
25Why Asset Management
- Common Vision
- Performance Measures become important
- Results linked to Performance
- Accessible at many organization levels
- Links budget and program
- OPTIMIZE SYSTEM LEVEL IMPROVEMENTS (evaluate
trade-offs)
26Getting Started
- Inventory roads, streets, alleys, bridges,
sidewalks, pvmt. Markings, signs, signals - common reference system
- Condition Assessment good-fair-poor-bad
- Performance Criteria tort liability, system in
service, customers needs, scheduled maintenance - Management alternatives w/ Budget
27Goals
- To provide ready access to quantitative and
qualitative data - To facilitate decision making based on data
- To utilize principles drawn from economics,
accounting, risk management, and customer service
models - To ensure efficient resource allocation and asset
optimization
28Thank You