Second part of the presentation by Dr. Theuns Henning, Senior Lecturer, Department of Civil and Environmental Engineering, University of Auckland (New Zealand). It presents an approach to establish base asset knowledge, assess asset condition, and identify critical assets and business risks.
Original Title
ADBTF14_RAM_Understand and Define the Requirements of RAM 2
Second part of the presentation by Dr. Theuns Henning, Senior Lecturer, Department of Civil and Environmental Engineering, University of Auckland (New Zealand). It presents an approach to establish base asset knowledge, assess asset condition, and identify critical assets and business risks.
Second part of the presentation by Dr. Theuns Henning, Senior Lecturer, Department of Civil and Environmental Engineering, University of Auckland (New Zealand). It presents an approach to establish base asset knowledge, assess asset condition, and identify critical assets and business risks.
Road Asset Management Dr Theuns Henning University of Auckland 18 September 2014 StrategicandLongTermPlanning ComponentsofAssetManagement AssetManagement Component Purpose Using Risk DataandDataCollection ToUnderstandthe performanceofthe network Todeterminehowmuch dataisneededcriticality Reportingand PerformanceManagement Tocommunicate thestatus ofnetwork Highlight criticalareas LevelofService Aconversationwiththe publiconstandards Riskmanagementand disasterresponse Financials ? ? Decision Making ? ? AssetManagementPlan StrategicandLongTermPlanning StrategicAssetManagement PASS55 StrategiclevelAM(PASS55) AssetManagementDecision Making FinancialCulculation Financialforecasts ArethekeyoutputofanAMplan Mustbepreparedforatleast1020years Coveroperational,maintenance,renewaland capital(new)costs Belinkedtothemanagementstrategies Listkeyassumptionsandconfidencelevels SourceNAMS ContentsFinancialForecasts Summaryoffinancialpolicies DevelopmentContributions Assetvaluation(ifnotcoveredinasset descriptionsection) Methodofdevelopingfinancialforecasts Confidencelevelsandkeyassumptions Financialforecasts SourceNAMS Modified LOS and Capital Works AMP Forecasts Current LOS/Budgets Version 1 Budget Amended Budget Financial Model/ Constraints LOS Budget Iteration Process Balanced Budget Budget Setting Process SourceNAMS DecisionMaking Objectives Weattempttosimulateappropriatedecision making,repeatedonlargerscale,consistent andrepeatable Choosetheappropriatedecisionmaking tool/techniquethattargetsthedecision drivers; Maketheoutcomesmorevaluable Generaltechniques Decisionalgorithms Prioritisation MultiCriteriaAnalysis Optimisation Lifecyclecostanalysis OptimiseloS Riskbaseddecisionmatrices Riskoptimisation DecisionAlgorithm Example:Evaluatingleastcost(PV ofcosts) MultiCriteriaAnalysis Option Grouping S o c i a l C u l t u r a l F i n a n c i a l E n v i r o n m e n t a l S u b t o t a l s T o t a l Product & Service Quality 0 16.6 1.8 0 18.4 Public Impact 0 4.8 0 0 4.8 Business Risk 0 0 5.2 0 5.2 Legal Requirements 3 2 1 0 6 Technical issues 0 0 0 0 0 Performance issues 0 0 0 0 0 Environmental 0 0 2.4 0 2.4 Subtotals 3 23.4 10.4 0 36.8 7. Economic / Financial 0 0 0 20 20 Totals 3 23.4 10.4 20 56.8 Product & Service Quality 0 18.8 2 0 20.8 Public Impact 0 0 0 0 0 Business Risk 0 4.5 0 0 4.5 Legal Requirements 0 0 7.8 0 7.8 Technical issues 3 2 1 0 6 Performance issues 0 0 0 0 0 Environmental 0 0 2.4 0 2.4 Subtotals 3 25.3 13.2 0 41.5 7. Economic / Financial 0 0 0 0 0 Totals 3 25.3 13.2 0 41.5 Do Nothing (Base Case) Option 1 OptimisationinaNutshell Deighton Water Model Optimisationexample Worsefirstisnotcost effective SortedaccordingtotheSurfaceconditionin descendingorder(worstfirst), Fillthebudgetforyear1; Theremainingsectionsscheduledforyear1 (oranyyearinfocus)butnotselectedwere deferredtothenextyear. ResultsSurfacePerformance PavementPerformance CostOutcome Theaverageroutinemaintenancecostforthe optimisedprogrammeoverthe20years analysiswas80%thatoftheworstfirst routinemaintenancecosts. Thisrelatestoa10%overallinvestmentcost savingsfollowinganoptimalprogramme. Wheredoweuseriskconcepts? Data Collection Preparingfor disasters Construction and Procurement Planningand Design Network Operations Riskbaseddecisionmaking Source:AS/NZS4369:1995 TreatmentPriorities Source:(UniServices,Watson) Consideringfuturerisks thereare limitations RISKMANAGEMENTINTHE MANAGINGOFROADASSETS Classesofriskstoconsider - Strategic planning risks - Asset management planning risks - Levels of service risks - Natural event and environmental risks 'Planning' risks - Systems / information risks - People risks - Financial risks 'Management' risks - Procurement risks - Project management risks - Contract management risks - Communication risks 'Delivery' risks - Risks common to all assets - Risks associated with specific asset types 'Physical Asset' risks Guidelines Rolesandresponsibilities Corporate risk regime Transportation-specific risks Organisation personnel Risk policy Risk framework Risk monitoring & reporting Risk identification Risk ranking Risk monitoring Risk reporting Risk mitigation Mayor & councillors Understand and approve Understand Periodically consider risk status reports - - - - - CEO High understanding High understanding Approves risk status reports to councillors - - - Understandin g of status of high risks Overview of mitigation actions Council risk coordinator Intimate understanding Intimate understanding Preparation of risk status reports Overview to ensure consistent approach Overview to ensure consistent approach Coordinated with TAM Coordinated with TAM Monitoring effectiveness of mitigation actions Transportatio n asset manager (TAM) Understandin g Understandin g Responsible for transport aspects of risk status report Leader or champion of risk identification team Consensus seeker or arbiter of rankings Overview of monitoring actions Prepares regular risk status reports Supervision of mitigation actions Transportatio n team Understandin g Understandin g Understandin g Core part of identification team Core part of ranking team Coordinated with support functions Submits information for TAM Undertakes mitigation actions Other asset teams Understandin g Understandin g Understandin g Understandin g and input (interconnecte d networks) Understandin g and input (interconnecte d networks) Understandin g and input (interconnecte d networks) Understandin g and input (interconnecte d networks) Understandin g and input (interconnecte d networks) Conclusions Riskmanagementcreatesopportunitiesto savelivesand$$ Needtogetbuyinfromthetop throughto manontheground creatingtheculture Adoptappropriateprocessforsituation StrategicandLongTermPlanning ComponentsofAssetManagement AssetManagement Component Purpose Using Risk DataandDataCollection ToUnderstandthe performanceofthe network Todeterminehowmuch dataisneededcriticality Reportingand PerformanceManagement Tocommunicate thestatus ofnetwork Highlight criticalareas LevelofService Aconversationwiththe publiconstandards Riskmanagementand disasterresponse Financials Setthefuture investment needs Scenarioanalysis Decision Making Maximisingtheoutcomes forinvestment Oneofthedecision methods AssetManagementPlan StrategicandLongTermPlanning References Hill,F.,&Henning,T.F.(2011).SmartPlanning,SmartPerformance, SmartOutcomes:TheImpendingDemiseofRiskManagement. PresentedatIngenium 2011,Wellington,NewZealand.16June 18June2011. Hill,F.,Henning,T.F.,Smith,B.,&DeverTod,K.(2010).Casestudies andbestpracticeguidelinesforriskmanagementonroadnetworks. (415)NZTransportAgencyResearchReport415(Pages:118). Wellington,NZTransportAgency.Commissioningbody:NZ TransportAgency. StandardsNewZealand(2004)Riskmanagementstandard, AS/NZS 4360:2004.Wellington:StandardsNewZealand. Henning,T.F.P.(2009).TheDevelopmentofPavementDeterioration ModelsontheStateHighwayNetworkofNewZealand.(PhDThesis, TheUniversityofAuckland).