Report 69 Asset and Infrastructure Management for Airports

June 2012

Contents
Background to the project What is Holistic Asset Management? Main Findings of the Research Getting Started Primer Highlights Guidebook Highlights Conclusions

Researchers
GHD Consulting Inc. Principal Investigator: Larissa James Shivprakash Iyer Crystal McNeely Wayne Francisco Duncan Rose Sophie Denford Keith Brown Christian Roberts Rex Harland Colin James Scott Sellers

Transsolutions LLC Gloria Bender Rex Roe Applied Research Associates Inc David Hein Allen Parra Lawrence Smith PE Lawrence Smith

ACRP 01-16 Panellists

Chair Ms. Karen Scott, P.E. Deputy Executive Director - Planning & Engineering Louisville Regional Airport Authority Members Ms. Carol M. F. Davis Vice President, Asset Management DFW International Airport/Asset Management FAA Liaison Mr. Kevin C. Willis Airport Compliance Officer Federal Aviation Administration FHWA Liaison Mr. J. B. "Butch" Wlaschin, P.E. Director, Office of Asset Management Federal Highway Administration

Mr. Josh Francosky, AAE Senior Airport Planner Hartsfield-Jackson Atlanta International Airport
Mr. Royce Holden IT Director Asheville Regional Airport Ms. Joyce K. Johnson President CAD Concepts, Inc. Ms. Therese "Teri" Norcross, CPA Finance Manager Missoula County Airport Authority

Other Liaison Mr. Matthew J. Griffin Manager Policy and Regulation Airports Council International - North America
TRB Liaison Mr. Thomas Palmerlee Associate Division Director Transportation Research Board ACRP Staff Ms. Marci A. Greenberger, AAE Senior Program Officer Transportation Research Board Airport Cooperative Research Program Ms. Tiana M. Barnes Senior Program Assistant Transportation Research Board

Key Airport Participants

Long Survey Participants Miami International Airport Corpus Christi International Airport Toronto Pearson International Airport Cincinnati/Northern Kentucky Int. Airport Churchill Manitoba Airport Jackson Municipal Airport Minneapolis/St. Paul International Airport Sacramento International Airport Fresno Yosemite International Airport Hartsfield-Jackson Atlanta International Airport Chicago OHare International Airport Dallas/Fort Worth International Airport Reno-Tahoe International Airport McCarran International Airport Bangor International Airport Greenville Spartanburg International Airport Palm Springs International Airport Jacksonville International Airport Oakland International Airport Charlottetown Airport Memphis International Airport Seattle Tacoma International Airport Vancouver International Airport Winnipeg Airports Authority Springfield Branson National Airport Salt Lake City International Airport Louisville International Airport Louis Armstrong New Orleans Int. Airport Addison Airport San Francisco International Airport Tallahassee Regional Airport Washington Dulles International Airport Nashville International Airport Gatwick, UK Short Survey Participants Large Hub Addison Airport Arlington Municipal Airport Baltimore Washington International Airport Chicago OHare International Airport Denver International Airport Detroit Metro Airport George Bush Intercontinental Airport Minneapolis/ St. Paul International Airport Medium Hub Austin Bergstrom International Airport Cincinnati/Northern Kentucky Colorado Springs Municipal Airport General Mitchell International Airport Lambert St. Louis International Airport Manchester Boston Regional Airport Memphis International Airport Sacramento International Airport South West FL. International Airport Vancouver International Airport Albuquerque International Airport Non-Hub Bangor International Airport Grand Canyon National Park Airport Metropolitan Knoxville Airport Authority Missoula International Airport Pittsburgh International Airport Saint John Airport Canada Small Hub San Diego International Airport Atlantic City International Airport Baton Rouge International Airport Corpus Christi International Airport Des Moines International Airport Fresno Yosemite International Airport Gerald Ford International Airport Greenville Spartanburg International Airport Huntsville International Airport Long Island Macarthur Airport Preston Smith International Airport Tallahassee Regional Airport Tucson International Airport Tulsa International Airport Valley International Airport Wichita Mid-Continent Airport Site Visits Dallas/Fort Worth International Airport Miami International Airport Addison Airport Greenville Spartanburg International Airport Sacramento International Airport Toronto Pearson International Airport Bangor International Airport Gatwick London Airport Brisbane Airport Corporation Auckland Airport Charlotte Douglas International Conference Calls Port Authority of NY and NJ Port of Seattle Sarasota International Airport Denver International Airport Cincinnati International Airport

What is Holistic Asset Management?

Systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purposes of achieving its organizational strategic plan. rencana strategis didefinisikan sebagai: "Secara keseluruhan rencana jangka panjang bagi organisasi yang berasal dari, dan mewujudkan visi, misi, nilai, kebijakan bisnis, kebutuhan pemangku kepentingan, tujuan dan pengelolaan risiko."
Source: PAS 55 Part 1 2008

Main Findings of the Research

An holistic approach to asset management helps infrastructure managers to: Do more with less Identify and manage risks to the business Make better investment decisions Extend asset life, reduce downtime, achieve better control over performance Align decision makers to a common purpose Respond more easily to changes in the regulatory and commercial environment
Aviation Planning, Seattle-Tacoma International Airport, Asset Management is a planned and proactive strategy for optimizing the life of vital facilities. The business management practices are based on total cost of ownership for ongoing renewal, maintenance and operation. They are a source of competitive advantage and critical to the long term stewardship of airport infrastructure

Examples: 13.5% increase in pavement life Pavement levels of service maintained with 30% reduction in budget

Standards
No current standard for holistic infrastructure management in the US
ISO 55000 series of standards currently under development
Using the British Standards Institute Publicly Available Specification PAS 55 as a basis Due for completion by end of 2013

Recognized guidebooks for infrastructure asset management

International Infrastructure Management Manual produced and published by Institute of Public Works Engineering, Australia (IPWEA) National Asset Management Steering Group, New Zealand (NAMS)

The model - Asset Management Framework

What Asset Management could mean to you?

CEO and Board
Budget and Finance

Better understanding of future needs to service customers competitively

Reduce unforeseen post-budget capital needs Provide 10 year and beyond forecast of capital, operations, maintenance needs Price forecasts to address changing infrastructure investment needs Planning requirements for infrastructure and assets included in airport asset management plans Greater lead time on project work load, processes for continuous improvement in design and construction standards, improved engineering records, data and knowledge management Support for and focus on achieving operating efficiency and effectiveness, and service level outcomes Increased support for improved maintenance processes and practices Awareness of the environmental consequences of infrastructure failures and ability to pre-plan mitigations Greater awareness and understanding of the specific system functionalities needed to support the business

Planning Manager Engineering Manager

Operations Manager Maintenance Manager Environmental Manager Information Technology

How the model fits with current airport planning approaches

RISK IDENTIFICATION OPPORTUNITIES

AIRPORTS STRATEGIC PLAN

RISK MANAGEMENT PLAN

MARKETING PLAN

BUSINESS PLAN

MASTER PLAN

LAND USE PLAN

INSURANCE

AIR SERVICE

CONTRACTS

FACILITIES

ACQUISITIONS

Business Finance Planning and Development Administration

ASSET MANAGEMENT PLAN

RESOURCE AND STAFFING PLAN

TRAINING AND DEVELOPMENT PLAN

Governance Structures

Best Management Practices Asset Management Planning

Airport AMP Landside and Airside Facility and Systems AMPs Asset Strategies MMI (Maintenance Managed Item) Level

Baggage Handling System Passenger Boarding Bridge Conveyor Lift Column

10 Step Process to Asset Management

1. What is the current state of my assets?
Develop Asset Registry Assess Performance, Failure Modes Determine Residual Life

2. What is my required level of service?

Determine Life Cycle & Replacement Costs Set Target Levels of Service (LOS)

Determine Business Risk (Criticality)

Optimize O&M Investment

Optimize Capital Investment

Determine Funding Strategy

Build AM Plan

3. Which assets are critical to sustained performance?

4. What are my best O&M and CIP investment strategies?

5. What is my best long-term funding strategy?

Source: US EPA Asset Management Training

Asset Management Systems

Inventory Receiving Warehousing

Integration between financial and technical data and information Decision support tools to analyze asset data and information for optimized investment decision making

Work Orders Service Contract/ Vendors Resource Labor Tracking Inspections Maintenance of Assets

Rolling Stock

Asset Tracking

Facilities Requisition Materials Historical Data Equipment Purchasing

Preventative Maintenance

Budget and Planning

Above systems update the data hub

Asset Management Data Hub After data and business rules are applied hand off to financial management information system Apply data and business rules using the airport data hub To/From Updates asset management information system

Clean Data

Business Rules

Financial Management Information System Data rules

In addition, applicable functional areas and the divisions are updated

Getting started
Report 69: Primer The what and why for Executive Management
Overview of an asset and infrastructure management program
Components Benefits and costs

Report 69: Guidebook The how for Implementers Overview of how to implement a framework, develop and implement Asset Management Plans Undertake continuous improvement reviews

Primer Table of Contents

Why Asset Management for Airports? What can Asset Management do for you? Introduction and Primer Overview Introduction to Asset Management Asset Management Policy Asset Management Objectives, Strategies and Plans Asset Management Enablers Implementation of Asset Management Plans Performance Assessment and Improvement Management Review Pulling it all Together: Implementing an Asset Management Framework Concluding Observations

Primer Highlights
Primer Table of Contents What does Asset Management do for you? Introduction and Primer Overview Introduction to Asset Management Asset Management Policy Asset Management Objectives, Strategies and Plans Asset Management Enablers Implementation of Asset Management Plans Performance Assessment and Improvement Management Review Pulling it all Together: Implementing an Asset Management Framework Concluding Observations
Series 1 = Your Assessment Series 2 = Top 10 % of Airports in the US Series 3 = Best Appropriate Practice

Undertake an asset management maturity/gap assessment to prioritize an implementation roadmap:

Guidebook Table of Contents

Introduction and Guidebook Overview Implementing an Asset Management Framework: Establishing the Foundation Asset Management Objectives Asset Management Strategies and Plans Airport Information and Data Systems Implementation of Asset Management Plans: Lifecycle Processes and Best Appropriate Practices Performance Assessment and Improvement Management Review

Guidebook Highlights
Guidebook Table of Contents Introduction and Guidebook Overview Implementing an Asset Management Framework: Establishing the Foundation Asset Management Objectives Asset Management Strategies and Plans Airport Information and Data Systems Implementation of Asset Management Plans: Lifecycle Processes and Best Appropriate Practices Performance Assessment and Improvement Management Review 10 Step Asset Management Plan development process: Example for a Passenger Boarding Bridge (PBB)

1. What is the current state of my assets?

Develop Asset Registry Assess Performance, Failure Modes Determine Residual Life

2. What is my required level of service?

Determine Life Cycle & Replacement Costs Set Target Levels of Service (LOS)

Determine Business Risk (Criticality)

Optimize O&M Investment

Optimize Capital Investment

Determine Funding Strategy

Build AM Plan

3. Which assets 4. What are my best O&M and are critical CIP investment strategies? to sustained performance?

5. What is my best long-term funding strategy?

Guidebook Highlights
10 Step Asset Management Plan development process: Example for a Passenger Boarding Bridge (PBB)
What is the State of My Assets?

Investment Profile - Passanger Boarding Bridge

Asset Register and Hierarchy Installed Date Year Act or Est 2010 2005 2005 2010 2008 2005 2005 2010 2005 2008 2005 2005 2008 2005 2005 2005 2005 2005 2005 2008 2010 2009 2005 2005 2005 2005 2005 2005 2005 2005 2005 Asset Class Original Cost $ Act or Est $ 1,275 $ 2,705 $ 1,445 $ 765 $ 595 $ 765 $ 595 $ 1,725 $ 340 $ 442 $ 765 $ 595 $ 765 $ 9,000 $ 595 $ 85 $ 8,600 $ 595 $ 1,360 $ 765 $ 595 $ 4,250 $ 6,800 $ 5,100 $ 850 $ 595 $ 765 $ 595 $ 595 $ 765 $ 765 Estimated Effective Life Years 5 15 15 5 3 15 15 5 7 3 15 15 3 15 15 7 10 10 15 3 5 5 10 15 15 25 15 15 15 15 15 Condition Rating

$250,000
1 to 10 Tab A 2 3 3 2 2 5 7 2 6 7 3 8 2 2 7 7 8 6 8 7 6 5 6 6 6 6 6 7 6 4 4

Current Year Level 1 1 - Gate

2011 Level 2 -11 Gate 1 PBB

Level 3 -111PC Air

-112 400 Hz Power

-113 Potable Water -114 Interiors

-115 Rotunda

Level 4 -1111 Air Hose -1112 Condenser -1113 Compressor -1121 Cord -1122 Plug -1123 Retractor/Cable Hoist -1131 Cabinet -1132 Hose -1141 Wall covering -1142 Carpet -1143 Hand rails -1151 Bearings -1152 Curtain -1153 Base Column

-116 Pedestal -117 Tunnel assembly -1171 Tunnel Assemblies -1172 Tunnel Roller Assemblies -118 Wheel Bogie -1181 Assembly -1182 Wheel -1183 Tire Pneumatic -1184 Wheel Motor DC Drive -1185 Wheel Motor AC Drive -1186 Tire Solid -119 Lift Column -1191 Lift Column Motors -1192 Lift Column Ball Screws -120 Cab Assembly -121 Cab Curtain -122 Cab Bumper -123 Stairs -124 Bag chute -125 Use/power meter

Tab A 2 2 3 5 5 5 7 7 7 7 7 3 7 3 7 7 3 7 3 3 4 3 3 4 4 7 7 7 7 7 5

Operations $ PM $

$200,000

Capital $

Avg Annual $

$150,000

$100,000

$50,000

$0
2015 2029
2011 2013 2017 2019 2021 2023 2025 2027

2011 Capital $ $ 2,000 $

2012 38,400 $

2013 3,500 $

2014 18,000 $

2015

2016

2017 $

2018 $

2019 $

2020 50,800

48,000 $ 130,500 $ $77,180.89 $ 6,079.01 $ 32,450 $ 30,000

$294,617.85 Avg Annual $ $77,180.89 $77,180.89 Annual Depreciation $ $ 6,079.01 $ 6,079.01 PM $ $ 32,450 $ 32,450 Operations $ $ 30,000 $ 30,000

$77,180.89 $ 6,079.01 $ 32,450 $ 30,000

$77,180.89 $ 6,079.01 $ 32,450 $ 30,000

$77,180.89 $ 6,079.01 $ 32,450 $ 30,000

$77,180.89 $ 6,079.01 $ 32,450 $ 30,000

$77,180.89 $ 6,079.01 $ 32,450 $ 30,000

$77,180.89 $ 6,079.01 $ 32,450 $ 30,000

$77,180.89 $ 6,079.01 $ 32,450 $ 30,000

For more information contact: Report 69 Principal Investigator: Larissa James larissa.james@ghd.com or Crystal McNeely crystal.mcneely@ghd.com

THANK YOU