Fundamentals of Asset Management

Step 1. Develop Asset Registry

A Hands-On Approach
Tom’s bad day…

Fundamentals of Asset Management 2

First of 5 core questions
1. What is the current state of my assets?
 What do I own?
 Where is it?
 What condition is it in? What is its performance?
 What is its remaining useful life?
 What is its remaining economic value?

Fundamentals of Asset Management 3

AM plan 10-step process
System Layout;
Data Hierarchy,
Standards, and
Inventory
1. What is the current state of my assets?
Determine
Develop Assess Determine Set Target
Life Cycle &
Asset Performance, Residual Levels of
Replacement
Registry Failure Modes Life Service (LOS)
Costs

Determine Optimize Optimize Determine

Build AM
Business Risk O&M Capital Funding
Plan
(“Criticality”) Investment Investment Strategy

Fundamentals of Asset Management 4

What exactly is an asset?

Fundamentals of Asset Management 5

Tom’s wastewater system diagram

Pump Stations

Byrne Point Downtown Madison Street Jones Street

Fundamentals of Asset Management 6

Jones Street pump station cross-section view

Superstructure
Control
Switchboard Power Pole
Motors &Transformer

Access Stairs
Caisson
Inlet Sewer
Drive
Shafts

Pumps
Inlet Screen

Wet Well Dry Well Sump Pump

Fundamentals of Asset Management 7

Jones Street pump station “aerial” view

Gantry Crane
Force Main &
Valves

Dry Well Access Road

Power Pole
& Telephone
Wet Well
Lines
Local Road
Control Valve

Landscape
Planting
Incoming Sewers &
Security Fence
Manhole

Fundamentals of Asset Management 8

What is an asset register?
 Systematic recording of all assets an organization
owns or for which it has responsibility
 Uses asset identification numbers to which attribute
information can be linked

Fundamentals of Asset Management 9

Sources of data
 As-built drawings
 Design drawings
 Manufacturers’ manuals
 Bid documents
 Schedules of quantities
 Staff—current and
previous
 Photos and videos

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Types of asset registers
 Hierarchical—parent, child
 Category-based
 Process loops
 Spatial relationships—GPS-generated
 Business unit responsibilities
 Service provisions

GPS is global positioning system

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Asset hierarchy
Facility

Parent Asset

Child Asset

Grandchild Asset

Grandchild Asset

Child Asset

Parent Asset

Fundamentals of Asset Management 12

Asset hierarchy, levels 1 and 2
Facility

Parent Asset Level 2

Child Asset

Grandchild Asset

Grandchild Asset

Child Asset

Parent Asset

Fundamentals of Asset Management 13

Asset hierarchy, level 3
Facility

Parent Asset

Child Asset Level 3

Grandchild Asset

Grandchild Asset

Child Asset

Parent Asset

Fundamentals of Asset Management 14

Asset hierarchy, level 4
Facility

Parent Asset

Child Asset

Grandchild Asset Level 4

Grandchild Asset

Child Asset

Parent Asset

Fundamentals of Asset Management 15

“Whole of government” asset hierarchy

Level 1 Level 2 Level 3 Level 4 Level 5

Whole of City Business Units Program Services Major System Elements Major System Facilities

Public
PublicWorks
Works

Transit
Transit
Collection
CollectionSystems
Systems
Water
WaterServices
Services
Parks
Parks&&Recreation
Recreation Gravity
GravitySewers
Sewers
Treatment
TreatmentSystems
Systems
Sunshine
SunshineCity
City Water
WaterUtilities
Utilities Siphon
SiphonStructures
Structures
Disposal
DisposalSystems
Systems
Convention
Convention Center
Center Pump
PumpStations
Stations
Wastewater
WastewaterServices
Services
Police
Police Force
ForceMains
Mains

Buildings
Buildings Manholes

Aviation
Aviation

Fire
Fire--Rescue
Rescue

Fundamentals of Asset Management 16

Asset hierarchy example, levels 1 and 2

Sanitation Program Level 1

Eastern Systems

Northwest Systems

Southern Systems

Fundamentals of Asset Management 17

Asset hierarchy example, levels 1 and 2

Sanitation Program Level 1

Eastern Systems Level 2

Northwest Systems

Southern Systems

Fundamentals of Asset Management 18

Asset hierarchy example, levels 1 and 2

Sanitation Program Level 1

Collection Systems

Treatment Systems

Disposal Systems

Fundamentals of Asset Management 19

Asset hierarchy example, levels 1 and 2

Sanitation Program Level 1

Collection Systems Level 2

Treatment Systems

Disposal Systems

Fundamentals of Asset Management 20

Asset hierarchy example, levels 2 and 3
Collection System Level 2

Gravity Sewers

Siphon Structures

Pump Stations

Force Mains

Fundamentals of Asset Management 21

Asset hierarchy example, levels 2 and 3
Collection System Level 2

Gravity Sewers Level 3

Siphon Structures

Pump Stations

Force Mains

Fundamentals of Asset Management 22

Asset hierarchy example, levels 3 and 4
Gravity Sewers Level 3

Manholes

Pipelines

House Connections

Drop Structures

Sewer Ventilation

Fundamentals of Asset Management 23

Asset hierarchy example, levels 3 and 4
Gravity Sewers Level 3

Manholes Level 4

Pipelines

House Connections

Drop Structures

Sewer Ventilation

Fundamentals of Asset Management 24

Asset hierarchy example, levels 2 and 3
Collection System Level 2

Gravity Sewers Level 3

Siphon Structures

Pump Stations

Force Mains

Fundamentals of Asset Management 25

Asset hierarchy example, levels 3 and 4
Pump Stations Level 3

Inlet Sewer and Screen

Wet & Dry Well

Superstructure

Pumps and Motors

Force Main

Electrics

Controls

Land and Surroundings

Fundamentals of Asset Management 26

Asset hierarchy example, levels 3 and 4
Pump Stations Level 3

Inlet Sewer and Screen Level 4

Wet & Dry Well

Superstructure

Pumps and Motors

Force Main

Electrics

Controls

Land and Surroundings

Fundamentals of Asset Management 27

Roll up concept
Confidence at the asset level is
Sanitation System required to roll up cost
Cumulative
cost management (and asset
performance) with confidence

Major Facilities

Child Assets

Grandchild
Components information
roll-up

Spare Parts

Fundamentals of Asset Management 28

Maintenance managed item
 Maintenance managed item
(MMI) is an item at the lowest
level—the smallest Asset
subdivision—of an asset
OR?
registry composed as a
nested hierarchy
 Typically, it is the level at
which an asset is maintained
(for example, parts are
identified), or decisions are
Component
made to repair, refurbish, or
replace

Think “work order”

Fundamentals of Asset Management 29

Stated another way…
 We manage the lifecycle of maintainable units
(“maintenance managed items”), not components or
parts
 A maintainable unit is repaired by replacing a
component or part.
 A component is replaced upon failure, not repaired.

Fundamentals of Asset Management 30

Using process layout with asset registry

To Aeration
Tanks

See Detailed Schematic of Blower

4 System Below

Air Discharge Header

Check Valve

1 2 3 4 5
25,000 40,000 40,000 40,000 25,000
CFM CFM CFM CFM CFM
Centrifugal Blower Blower Blower Blower Blower Blower
System System System System System

Butterfly Valve

Venturi Meter

Silencer

Air Intake Duct

Filter

Air Intake

Louver Damper

Fundamentals of Asset Management 31

Using process layout to build the asset registry
Oil Pump

Thrust Bearing

Bearing Temp. Sensor

T Blower Bearing
Valve Actuator Auxiliary Oil Pump
Silencer

Check Valve
Flow Meter Butterfly Valve Oil Cooler
Centrifugal Blower

Bearing Temp. Sensor T

Blower Bearing
Coupling

Bearing Temp. Sensor T

Motor Bearing
Cooler

Electric Motor

Motor Cooling Fan

Bearing Temp. Sensor T

Motor Bearing

Motor Starter and Control

Fundamentals of Asset Management 32

Asset hierarchy
What hierarchy level is best for
Facility identifying a maintenance
management item (MMI)?

Parent Asset

Child Asset

Grandchild That level?

Component This one??

Subcomponent Here???

Fundamentals of Asset Management 33

Data confidence levels within asset hierarchy
Confidence Level Confidence level in this context means
Facility 40% the confidence the decision-maker
has that the decision rendered is
the best solution at the right time

Parent Asset 55%

Child Asset 70%

Grandchild 85%

Component 95%

Fundamentals of Asset Management 34

Data costs within asset hierarchy
Facility Cost factor for obtaining asset data
increases with increasing
depth in the asset hierarchy
Parent Asset

Cost Factor
Child Asset x 1.0 (Facility, Parent Asset, Child Asset)

Component x 1.7

Subcomponent x 2.5

Spare x 4.5

Fundamentals of Asset Management 35

Examples of tree-style asset hierarchy
Asset Hierarchy

1 2 3 4 5 6 7 8 Level 9
Name
Sanitation System
Disposal System
Collection System
Treatment Plants
Westerly Treatment Plant
Southerly Treatment Plant
Easterly Treatment Plant
Aeration System
Aeration Facility
Building & Services
Intake Header
Blower Assembly
Motor Starter
Blower Assembly 1
Blower Assembly 1
Blower Assembly 1
Blower Assembly 4
Rear motor bearing
Rear bearing temp sensor
Oil lube/cooling system
Oil pump
Circulation tubing
Oil sensor
Motor Cooling System
Cooling Water Pumps
Eletric Motor for Cooling System
Piping and valves
Electric motor
Front motor bearing
Front bearing temp sensor
Coupling
Rear blower bearing
Rear bearing temp sensor
Centrifugal blower
Housing
Main shaft
Impeller
Seals
Front bearing temp sensor
Front blower bearing
Discharge check valve
Inlet butterfly valve
Silencer
Flow Meter
Thrust Bearing
Blower Assembly 5
Discharge Header
Aeration Tanks

Fundamentals of Asset Management 36

Data standard
Written record:
 Asset identification naming convention

 Attributes

 Record layouts

 Database architecture and protocols

 Data collection protocols

Fundamentals of Asset Management 37

Asset ID naming convention issues
 What is an asset? (What gets a unique ID?)
 Who creates the asset ID?
 How is it assigned?
• Linear (pipe) vs. vertical (plant) assets
• Geo-reference
• CAD versus GIS
• Active vs. passive
• Lock-out/tag-out
• Asset ID vs. asset location for mobile assets

CAD is computer-aided design, GIS is geographic information system

Fundamentals of Asset Management 38

 Data collection strategy
ATTRIBUTE SOURCE LEVEL USE
Asset List SPL / Drawings Asset All
Asset Hierarchical SPL / Drawings Asset All
Asset ID / Number SPL / Data Standard Asset All
Asset Status Field Inspection, Staff Interviews Asset All
Asset Type SPL / Data Standard Asset See Level Column
Installation Date Drawings / Staff Interviews Asset Renewal Timing
Last Rehab Date Staff Interviews Asset Renewal Timing
Size Drawings / Field Inspection Asset CoF, Valuation
Size Unit Drawings / Field Inspection Asset CoF, Valuation
Length Drawings / Field Inspection Asset CoF, Valuation
Length Unit Drawings / Field Inspection Asset CoF, Valuation
Capacity Drawings / Field Inspection Asset CoF, Valuation
Capacity Unit Drawings / Field Inspection Asset CoF, Valuation
Condition Inspection, Staff Interviews Asset Renew Timing, PoF

..
. Use drives collection strategy!
Etc.

Fundamentals of Asset Management 39

Major components of asset data
ATTRIBUTE SOURCE LEVEL USE
Tied to the asset ID… Asset List
Asset Hierarchical
SPL / Drawings
SPL / Drawings
Asset
Asset
All
All
Asset ID / Number SPL / Data Standard Asset All
 Physical attributes Asset Status Field Inspection, Staff Interviews Asset All
Asset Type SPL / Data Standard Asset See Level Column
Installation Date Drawings / Staff Interviews Asset Renewal Timing
 Geo-reference Last Rehab Date Staff Interviews Asset Renewal Timing
Size Drawings / Field Inspection Asset CoF, Valuation
Size Unit Drawings / Field Inspection Asset CoF, Valuation
 O&M manuals Length Drawings / Field Inspection Asset CoF, Valuation
Length Unit Drawings / Field Inspection Asset CoF, Valuation

 Drawings and photos Capacity

Capacity Unit
Drawings / Field Inspection
Drawings / Field Inspection
Asset
Asset
CoF, Valuation
CoF, Valuation
Condition Inspection, Staff Interviews Asset Renew Timing, PoF
 Life cycle costs

 Knowledge and strategy

Fundamentals of Asset Management 40

Two approaches to generating registry data
What we already have— What we are about to
retrospective acquire—prospective
 Critical first  Tie to commissioning or
 Use existing crews as they handover process
respond to Work Orders  Use contract retainage to
 Use engineering students ensure control

Fundamentals of Asset Management 41

Recording data—new technology

Ricoh Caplio Pro G3

Fundamentals of Asset Management 42

Data responsibilities: example
Data Task Organization Group

Asset details Operations

Condition assessment Maintenance

Asset values Engineering

Residual physical lives Engineering

Probability of failure Maintenance

Consequence of failure Engineering

Business risk exposure Engineering

Optimal renewal strategy Maintenance or Engineering

Fundamentals of Asset Management 43

Key points from this session
What do I own and where is it?
Key Points:
 We have to know what we
have before we can manage
appropriately what residual
life is left.
 Everything in AM starts with
the Asset Registry.
 The “data standard” is the
key building block for AM
asset registries.
Fundamentals of Asset Management
Associated Techniques:
 Asset registry/inventory
 Data standards, asset
hierarchy
 System maps
 Delphi approach to locating
other sources of data
 Process diagrams
 “Handover” procedures
44
Tom’s spreadsheet

Fundamentals of Asset Management 45