TAM Guide Webinar 3: The Transportation Asset Management Plan (TAMP)

1. TAM Guide Webinar 3: The Transportation Asset Management Plan (TAMP) FHWA and AASHTO Sponsored Webinar Series on the AASHTO Transportation Asset Management Guide – A Focus on Implementation November 30, 2011 • Please do not put your phone on hold. • Please mute your phone. • If you do not have a mute button on your phone, press *6 on your phone keypad. • Press F5 to go to full screen mode, press Esc to go out of it

2. Webinar Instructors • Matt Hardy, AASHTO (sponsor) • Stephan Gaj, FHWA (sponsor) • Hyun-A Park, Spy Pond Partners, LLC (lead facilitator) • Mark Gordon, AECOM • Scott Richrath, Colorado DOT • Tracy Larkin Thomason, Nevada DOT • Pat Morin, Washington DOT • Jeff Price, Virginia DOT

3. AASHTO Transportation Asset Management (TAM) Guide • Provides a strategic framework for asset management • Address strategic questions as transportation agencies manage their surface transportation system • Establishes a common language for TAM practice and includes commonly used definitions • Realize the most from financial resources now and in the future to address • Preserving highway assets • Providing the service expected by customers • Focuses on approaches that an agency can take and use • Lessons that come from practical experience of agencies that are implementing asset management today

4. TAM Guide Webinar Series • Webinar 1: Applying the Guide • Overview of how the TAM Guide can help transportation agencies improve efficiency and effectiveness • Scenarios such as “Making the Case for Funding,”“Extending Asset Useful Life,” and “Improving Safety Performance” • Webinar 2: Guide Overview and Getting Started • General overview of the entire Guide, covering underlying framework and each section of the Guide • Strategies for using the guide including instructions on how an agency can get started on using the Guide to begin improving and/or implementing asset management • Webinar 3: The Transportation Asset Management Plan (TAMP) • Importance of getting an organization aligned to embark on an asset management improvements process using the TAM Guide • Key focus on the development and use of the TAMP • Webinar 4: Tools & Techniques for Implementing the TAMP • Discussion of the various management systems and tools and techniques described in the Guide and illustrations of their effective use • Specific cases of how agencies have used management systems and tools and techniques described in the Guide

5. Webinar 3 Objectives • Providing you with an understanding of the role that the Transportation Asset Management Plan (TAMP) plays in improving asset management in your organization • Getting an introduction to levels of service and the role it plays in your TAMP and asset management program • Learning the various ways that the TAMP can be developed • Sharing approaches that agencies have used for building and implementing their TAMP

6. Webinar 3 Agenda • TAMP Introduction • How it fits in your TAM activities • Introduction to Levels of Service • Developing and Using a TAMP • Contents • Who Should be Involved • Business Context for the TAMP • Writing and Updating the TAMP • TAMP Examples • Q & A and Wrap Up

7. TAM Guide Road Map – 14 Steps to Implementation Part Two Part One

8. Implementation Step 9: Develop a TAM Plan

9. TAM Improvement Path

10. Levels of Service OverviewMark Gordon AECOM Principal Investigator, NCHRP 8-69

11. Developing Levels of Service Levels of service describe what the customers perceive • Not set in isolation • All agencies have some now, in some form (e.g. GASB 34 Modified Approach) • Set at different levels — strategic, customer and technical • All must be SMART — Specific, Measurable, Achievable, Relevant, Timebound • Customer levels of service should be set with customer input • Start by documenting what is delivered now (the first-time up you can skip consultation / customer research) • Pick from the full range of customer research tools when gathering customer input • Customer levels of service amplify the agency mission, they must not contradict it

12. Technical Levels of Service • Take customer levels of service and convert them into technical language • Technical levels of service should not stand alone, but support a customer level of service or a legislative requirement • Used by asset managers and engineers to ensure that they are delivering the right things • Describe what the technical measures are required to deliver the customer levels of service. E.g. • maximum and average roughness measured in IRI • minimum and average skid resistance • illumination levels from street lights • The early stages of formal TAM may require current technical levels of service to be converted into “customer speak” and become current customer levels of service

13. Levels of Service Example for Sidewalks

14. Maintenance Level of Service (MLOS) at Colorado DOTScott Richrath Colorado Department of Transportation Performance & Policy Analysis Unit Manager

15. Colorado DOT’s Maintenance Levels of Service (MLOS) • CDOT uses an extensive Maintenance Levels of Service (MLOS) budgeting system to allocate funds and evaluate all maintenance activities performed throughout the state for a given fiscal year. • The main objective of MLOS is to establish an overall target level of service while staying within allocated budget dollars. • Levels of service communicate targets for accomplishment inside and outside the agency. • When planned levels of service are compared to actual service levels accomplished, a basis of accountability is established. • Relationships between levels of service and cost enable CDOT to evaluate the impacts of different funding levels, analyze tradeoffs in resource allocation, and monitor planned versus actual accomplishments against expenditures.

16. CDOT Objective: Meet or Exceed the Adopted Annual Maintenance Level of Service Grade

17. MLOS Guidance:

18. ASSET MANAGEMENT PLAN CONTEXT

19. Transportation Asset Management Plan What it is — Transport Scotland describes its Road AMP as a document that: • Sets out the agreed ten-year work and financial plans for the trunk road network • Describes how the agency will optimally manage these assets • Using the development and application of recognized good asset management practices • Deliver customer expectations • Deliver the aims, objectives and targets defined in the agency business plans

20. Transportation Asset Management Plan What it does — • Provides a key tool to help you meet your strategic objectives • Gives a focal point for information about: • Asset quantities and values • Investment strategies • How the assets are going to be managed to • Meet agency strategic objectives • Provide the agreed level of service to present and future customers at the lowest practical lifetime cost • Provides best practice coordination of complex issues • Requires logical thought and analysis • Cross- silo coordination required • Mechanism to aid communication internally and externally • Provides a robust repository and recovery of asset management information • Reinforces continuous improvement

21. Washington State DOT’s Legislative Context for Asset ManagementPat Morin Asset Management Manager Washington State DOT

22. Legislative Direction …”deficiencies on the state highway system shall be based on a policy of priority programming having as it’s basis the rational selection of projects and services according to factual need and an evaluation of life cycle costs…”– RCW 47.05.010 Web address for state law on prioritization:http://apps.leg.wa.gov/RCW/default.aspx?cite=47.05

23. What Does Stewardship Mean? • Efficiency – Change in performance per dollar spent • Effectiveness - Does it work as planned? • Certain performance assumptions are made for benefit cost calculation to use in prioritizing projects • WSDOT has begun measuring everything it builds against those performance assumptions

24. Measurable Performance Results

25. Pavement Management Strategies

26. Highway Structures Management Strategies

27. What Does a TAMP Look Like? • Many are single documents, especially when they cover local or regional assets • At the state-wide level the TAMP is likely to be a smaller document that: • Draws published information together from a large number of internal and some external publications • Directs its outputs to separate programs such as budget forecasts, approved improvement and preservation programs, and procedure and process manuals • The picture at the state-wide level is of a “bookshelf” that comprises the TAMP. • There are 55 manuals and publications that together describe the NZTA State Highway (national highway) asset management system • Many of these manuals are also used by local road authorities

28. Strategic goals and levels of service Agency performance measures & achievement Life cycle management Asset inventory & condition assessment Asset preservation Replacement and renewal incl predictive modelling Risk assessment & management Program planning Program delivery Sustainability Growth & demand forecasting Establishing the need for improvements Financial Summary Valuation & depreciation, link to GASB 34 Annual and longer term programs TAM Practices TAM Improvement Plan Appendices May be extensive and detailed or just contain minimum of relevant supporting information TAMP Contents

29. Scottish Roads AMPNATIONAL AMP Introduction Aims, Objectives, Targets & Expectations Road Assets Asset Management Practices Current and Future Demand Performance Management Framework Risk Management Lifecycle Plans Decision Support Work Plan Financial Plan Risks to the Ramp & their Management Monitoring, Reviewing & Continual Improvement Asset Management Improvements References Road Structures – Construction Form Asset Management Planning Information Management Executive Summary Abbreviations About the State Highway AMP Putting the Customer First The State Highway and its Assets Operating Performance and Asset Condition Managing Customer Demand Managing Risk Asset Lifecycle and Funding Requirements Implementation on the Ground Our Improvement Plan

30. Who Should be Involved in the TAMP? TAM is focussed on delivering services – many parties should be involved - The TAM Plan team - Internal stakeholders - External stakeholders - Customers may be a new consideration

31. TAMP Business Process ContextTracy Larkin-Thomason Nevada DOT Assistant Director – Planning NCHRP 8-69 Panel Member

32. Business Processes and the TAMP The TAMP is the center through which the processes required to deliver an agency’s goals and objectives relate to each other and are coordinated

33. The TAMP is the Hub of Service Delivery • It gathers all the inputs and moderates them with all the appropriate controls • It outputs the programs, forecasts and information required for the agency to achieve its mission • Without a TAMP the Mission is harder to achieve and it may just be a happy coincidence that it is achieved

34. Colorado Case Study and Traffic Growth Analysis Scott Richrath Colorado Department of Transportation Performance & Policy Analysis Unit Manager

35. Introduction • The Colorado Department of Transportation has been on a continuous improvement asset management journey since the early 1990s. • Has one of the nation's most mature pavement management systems • Early adopter of the Pontis bridge management system • Initiated one of the first maintenance management level of service approaches (as described earlier) • These initiatives were driven by a focus on good investment planning that continues into the present with the implementation of the SAP Enterprise Resource Planning (ERP) system that supports their asset management program.

36. CDOT State Long Range Plan Example

37. Conclusion • An essential message is that the minimum or lowest acceptable standards established for the agency must be met by every asset while the agency's target performance levels, being an average or aggregate of the individual assets over the entire network, will be higher. • Establishing and managing the performance of assets whose individual performances are aggregated is a particular skill • It is something that requires development as TAM maturity develops.

38. Start where you are now Document what you do now and currently planned asset management improvements Determine what you want to achieve in the future Develop improvement plans Prioritize the improvements and allocate resources to it Use the plan and monitor its effectiveness Repeat the cycle from step 2 Writing and Updating the TAMP

39. TAMP Steps

40. Prepare Yourself, the Agency, and the Team

41. Carry Out the Essential Supporting Processes

42. Write the Plan / Compile the Documents

43. Check the Plan’s Viability

44. The Most Important Steps — Use and Continuous Improvement!

45. The TAMP Should be a Prime Input to Other Documents and Plans

46. TAMP Development Path at New Zealand Transport AgencyMark Gordon AECOM Principal Investigator, NCHRP 8-69

47. NZTA Asset Management Context • Over a number of years the New Zealand Transport Agency (NZTA, formerly Transit NZ) had produced many manuals, guidelines, strategies, and other documents to govern the creation and management of its assets. • In 1997, it was felt that there needed to be a single “place” which linked high level strategy with day-to-day business operations and where the important facts and figures about assets could be described. • A national State Highways AMP was developed in stages over several years. The AMP provides an important feedback loop into the State Highway Strategy, which is reviewed and updated periodically to reflect new directions, goals, and objectives for the network.

48. NZTA TAMP Process

49. NZTA TAMP Summary • The NZTA also created more detailed and asset-specific AMPs for Bridges and Intelligent Transport Systems (ITS) assets. • ITS assets were recognized as being very different from other longer life assets, with a short life-span and heavily dependent on rapidly changing technology. • Today, each NZTA region updates an AMP every year, covering all of the region's assets. • Providing a good basis for involving local staff more in the TAM process • Identifying key asset issues and using asset management principles at a local level in deriving programs and budgets • The Office of the Auditor General is also an important stakeholder on behalf of the NZ Government, ensuring that “value for money” outcomes are being achieved. • NZTA realizes that developing the AMP is an incremental process, one that is best begun at a simple level with progressive development tailored to the organization's management, internal staff, and external relationship needs.

50. http://www.nzta.govt.nz/resources/state-highway-asset-management-plan/http://www.nzta.govt.nz/resources/state-highway-asset-management-plan/