HQ Perspective on Asset Management – Thoughts for

Coastal StructuresJim Clausner’s interpretation of

Jim Walker Vision as Influenced by Sandra Knight’s Perspective

Presentation for CTH Coastal Structures Workshop December 5, 2006, Philadelphia, PA

Outline

• Background– Why– AM 101

• HQ Goals – General

• HQ Goals as applied to Coastal Structures

Why Asset Management?

“Short list” 43,000 Structures285000 Tracts of land 12000 Buildings

Includes:1000 Coastal Structures 600 Dams2500 Recreational Areas 250 Locks 75 Hydropower

VALUE: $200 BILLION+

Lifecycle Infrastructure Management: Campaign Goal 3c- The Right Business Practices

Executive order 13327-Right-sizing inventory

Budget Performance Integration- Program Assessment Rating ToolRight performance

IT’s the RIGHT thing to do!

WE OWN ITWE MANAGE IT

How does Asset Management work?

WHAT IS ASSET MANAGEMENT?

Asset Management is the art of managing life cycle cost of infrastructure assets with innovative and adaptive strategies that ensure those assets continue to provide value to the nation and meet expected levels of service while mitigating risk – (Sandra Knight, Navigation TD)

“Asset Management is the business and decision-making process for the operation, maintenance, repair, rehabilitation and replacement or disposal of assets that allows managers to maximize the asset productivity and manage the related risks and costs.

(Rick Lockwood LRP Chief of Operations)

What will we achieve?The Vision…

LCM

BusinessProcessModel

Infrastructure assessment and evaluation

Data Integration Asset Management Plan

Sust

aina

ble

Infr

astr

uctu

reThe R

oad To Green

Data Integration

ISSUES Fundamental to success (Lean Six Sigma) Multiple sources (function, business line, program) Costly (especially when paid for multiple times) Must be collaborated Must have enterprise approach Must move to geospatial format

APPROACH REMIS- Real Estate Management System Research (review of all “inventory” data bases) Set Requirements (business line, programs, OMB, DOD) Identify Funding Sources Develop communication plan (HQ champion and PM’s work with PDT’s)

Infrastructure Assessment and Evaluation

COMPONENTS Standards and Criteria Condition Assessment Risk and Reliability analysis/models Inspection and Monitoring

ISSUESMost complex piece of strategyWill be broad in scope (simple to complex)Will be tailored to business line issuesWill involve many players with diverse approaches

APPROACHEstablish vision/end pointsSet achievable deliverables within each programConduct workshops on condition assessment and risk-based analysis

Assets - Navigation Structures

• Navigation, Hydropower and Flood Damage Reduction all have structures

• All these structures have mechanical components (locks, dams, other FC structures)

• Ideally we use a common method of assessing the condition– Navigation– Flood Damage Reduction– Hydropower

Flood Damage ReductionBasis of Ranking and Classification• Assessing Navigation Projects (Dams)

based on:– Condition Assessment: Relative Condition

Ratio (Probability of Failure)– Risk:

• Annualized Relative Economic Risks• Engineer Rating/Assessment

Factors and Weightings

• Seeking information– Metrics based – e.g., tons– Source of much debate among Stakeholders

• Existing HQ focus on Navigation Locks– LRD took initial effort – rigorous– MVD made simpler and more complete– Cost of repairs/maintenance fairly straight forward– Big Issue – how to develop the economic

consequences of failure– Lots of different consequences to consider

Navigation Asset Categories

• Channel– Inland– Coastal

• Structures– Coastal jetties, groins, etc– Navigation Locks– Confined Disposal Facilities (CDF’s)– Bridges

Process

Asset Management Program Goals(Jim Walker – Navigation BL Mgr)

• Standardization of practice• 5 year perspective• Improve customer satisfaction• Sustainable comprehensive approach• Defensible in the budget process• Direct link between investment decision

and level of service (performance)• Disposition – right sizing

Coastal Structure Assessment Challenges

• Inspection/Condition Index/– Simpler/2 - phased/Consistent

• Risk Based Deterioration Models– Good for rubble mound, armor units– Other types of structures need work

• Consequence categories to consider– Increased wave heights – reduced traffic ($)– Increased shoaling/dredging/reduced traffic($)– Loss of harbor functionality ($)– Safety, environment, social, etc.

Nav – The Way Forward(Jim Walker)

FY09 Goals (Proposed)• Establish condition assessment format for

Navigation structure maintenance • Develop the FY09 navigation budget using

condition assessment format (focus on Locks)• Establish team and develop navigation channel

condition assessments for inland and coastal channels

• Establish team and develop condition assessments for operations work

Asset Management Bottom Line

• Corps owns lots of infrastructure

• Many structures exceeded design life

• Limited budgets

• Smart investments

• Consistent, Risk Based Assessments and Consequences

• (Continued)

Asset Management Bottom Line(concluded)

• Integrate AM into Performance Based Budgeting

• Priorities based on National/Regional perspectives

• Educate Stakeholders/Congress

• New Buzz Word - – Reliability Centered Maintenance