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Asset Management

Federal Highway Administration Rhode Island Division April 28, 2000. Asset Management. Presented by:. Frank Botelho Office of Asset Management Federal Highway Administration Washington D.C. Introduction. Asset Management Definition. Systematic process of maintaining,

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Asset Management

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  1. Federal Highway Administration Rhode Island Division April 28, 2000 Asset Management Presentedby: Frank Botelho Office of Asset Management Federal Highway Administration Washington D.C.

  2. Introduction Asset Management Definition Systematic process of maintaining, upgrading and operating physical assets cost-effectively. Reference: 21st Century Asset Management, Executive Summary, AASHTO 1997

  3. Theme • AASHTO National Initiative • Critical Issues • Technical ABC’s

  4. Outline Part III Part I • Role of FHWA • AASHTO Goals • Physical Assets • Flow Diagram • Impetus Part II • National Initiative • Where we are now • Future

  5. AASHTO’s Goals: • Develop and document an understanding of asset management and how it can be used by member states. • Develop and promote asset management tools, analysis methods, and research topics. • Communicate with and inform member agencies on how to utilize asset management. • Assist member statesassessand implement asset management within their state. Reference: AASHTO Strategic Plan

  6. Physical Assets • Highways • Pavements • Bridges • Tunnels • Hardware • Signals • Electronics • Noise Walls • Right-of-way • OtherModes • Tracks and Ballast • Rolling Stock • Rail Stations • Parking Garages • Airport Runways • Terminals and Hangers • Wharves and Piers • Ferries

  7. Generic Asset Management System Goal Inventory Budget Condition Analyses Plan Feedback

  8. Impetus for Initiative • $1 Trillion Investment in Highways • Aging Infrastructure • Performance Based Management • Accountability • Reinventing Government • Information Age • Major Shift

  9. AASHTO National Initiative Milestones Executive Seminar Executive Workshop Administrative Resolution AR-4-97 Task Force Report to the Board of Directors Strategic Plan Guide on Asset Management Peer Exchange Workshop Expanded Strategic Plan September 1996 October 1997 November 1997 February 1998 April 1998 November 1998 October 1999 December 1999 February 2000

  10. Executive Seminar September 1996 • State D.O.T. ‘s • Arizona • California • Connecticut • Georgia • Iowa • Michigan • Minnesota • New York • North Dakota • Rhode Island • Utah • Private Industry • Wal-Mart • GTE • Ohio Edison • CONRAIL • Chrysler Motors • Werner Enterprises • Pittsburgh Plate Glass • Alliance Air Services • Others • Port Authority of NY & NJ • NY Thruway • U.S. Army

  11. Purpose Share experience and expertise in order to answer the following questions: 1. 2. 3. 4. 5. 6. 7. Does Asset Management mean the same thing from a business sense? Do we share the same basic framework and follow the same basic processes? Do we both aim for the same payoff / benefits? Do we share all of the same parameters? Do we run into the same hurdles? Are the risk and consequences the same? Have the public and private sectors made the same progress advancing Asset Management?

  12. Executive Seminar September 1996 The main issue in the private sector is not whether you need Asset Management but ratherHOW GOODis your Asset Management System because all inefficiencies eventually come out of profit. - Dr. Rita Vachani GTE Laboratories, Inc.

  13. Optimum

  14. Cost Effective Preservation } 1. Under-design 2. Over-design ! Wastes Money 3. Too Soon 4. Too Late

  15. Executive Workshop October 1997 Public 16 State D.O.T.’s Private General Electric Dupont Lehman Brothers • More Focused on State Issues • Launched the Initiative • Defined Roles: • AASHTO to provide Leadership • AASHTO asked FHWA to be a Partner and provide technical support • Produced the Summary: • “21st Century Asset Management”

  16. Administrative Resolution AR-4-97November 16, 1997 • Establish a Task Force • Develop a Strategic Plan • Develop a Guide • Continue Workshops • Prepare an Inventory of Tools • Coordinate with Strategic Planning and Quality Improvement Committees • Develop a “Lead State” model similar to the SHRP program

  17. Task Force Mary Peters, Chair Arizona DOT Madeleine Bloom, Secretary FHWA Andrew Bailey II Virginia DOT Frank Dantchez Georgia DOT David Ekern Minnesota DOT Lou Lambert Michigan DOT Peter Stephanos Maryland DOT Gretchen White Washington DOT Clint Topham Utah DOT Tim Gilchrist New York DOT

  18. Report to the Board of Directors April 1998 • “Support of Asset Management Activities” • Details each Action in the Resolution

  19. Strategic PlanNovember 1998 Goal 1. Document anddevelop an understanding of Asset Management and how it can be used by member states. Goal 2. Communicate with and inform the member states on how they can use Asset Management. Goal 3. Assist member states as they assess andimplement Asset Management within their state.

  20. AASHTO Guide forAsset Management November 1999 March 2001 NCHRP Project 20-24 (11) Crawford Jenks - Manager Contractor: Joint Venture Cambridge Systematics Parsons Brinkerhoff Roy Jorgenson Associates Phase I: Synthesis Gaps Framework Phase II: Guide

  21. Peer Exchange WorkshopDecember 1999 • 40 State D.O.T.’s • 60 State Representatives • Consultants • Academia • Report due in March 2000

  22. Expanded Strategic PlanTask Force MeetingFebruary 3 - 4, 2000AASHTO Office, Washington, DC Goal 1: “Develop an Understanding” 7 strategies and 18 activities Goal 2: “Develop Tools and Research” 9 strategies and 23 activities Goal 3: “Inform Leadership on Use” 2 strategies and 13 activities Goal 4: “Assist Member States” 4 strategies and 10 activities

  23. Strategic Plan Summation  4 Goals  22 Strategies 64 Activities To be finalized at the AASHTO Spring Meeting St. George, Utah April 6-10, 2000

  24. Future “Prediction is very hard, especially when it’s about the future” -Yogi Berra.

  25. Recap The Question isn’t If… The Question is How Well! Bottom Line Each State must decide how they will manage their Assets in the Future.

  26. FHWA Role in Asset Management • Headquarters • Turner-Fairbanks Research Center • National Highway Institute • Resource Centers • Division Offices • Federal Lands

  27. FHWA Headquarters • Provide Technical Assistance to AASHTO to develop and implement the AASHTO Strategic Plan on Asset Management. • Provide National Leadership to FHWA field offices in concert with the above role.

  28. Office of Asset Management Madeleine Bloom Director Economics Regina McElroy Management Systems Frank Botelho Maintenance Jim Sorenson

  29. Turner-Fairbank Highway Research Center • Support and provide appropriate research that is coordinated and directly tied to the AASHTO Strategic Plan on Asset Management.

  30. National Highway Institute • Support and provide appropriate training that is coordinated and tied directly to the AASHTO Strategic Plan on Asset Management.

  31. FHWA Resource Centers • Provide technical assistance to FHWA Division Offices and State DOT’s.

  32. FHWA Division Offices • Work one-on-one with their respective State DOT to provide whatever assistance is requested to help enhance Asset Management programs.

  33. Federal Lands • Work with Clients to enhance Asset Management Programs.

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