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: Transsolutions LLC
Larissa James Gloria Bender
Rex Roe
Shivprakash Iyer
Crystal McNeely
Applied Research Associates Inc
Wayne Francisco
David Hein
Duncan Rose
Sophie Denford Allen Parra
Keith Brown
Christian Roberts Lawrence Smith PE
Rex Harland Lawrence Smith
Colin James
Scott Sellers
 ACRP 01-16 Project Objectives
• Develop a Primer for executive-level decision makers at
airports of all sizes
– Overview of an asset and infrastructure management
program
Components
Benefits and costs
• Develop a Guidebook
– Instruction in the development and implementation of an
asset and infrastructure management program
Captures best management practices
Provides guidance in developing and incorporating asset
and infrastructure management programs at airports of all
sizes
 ACRP 01-16 Panellists
Chair FAA Liaison
Ms. Karen Scott, P.E. Mr. Kevin C. Willis
Deputy Executive Director - Planning & Engineering Airport Compliance Officer
Louisville Regional Airport Authority Federal Aviation Administration

Members FHWA Liaison

Ms. Carol M. F. Davis Mr. J. B. "Butch" Wlaschin, P.E.
Vice President, Asset Management Director, Office of Asset Management
DFW International Airport/Asset Management Federal Highway Administration

Mr. Josh Francosky, AAE Other Liaison

Senior Airport Planner Mr. Matthew J. Griffin
Hartsfield-Jackson Atlanta International Airport Manager Policy and Regulation
Airports Council International - North America
Mr. Royce Holden
IT Director TRB Liaison
Asheville Regional Airport Mr. Thomas Palmerlee
Associate Division Director
Ms. Joyce K. Johnson Transportation Research Board
President
CAD Concepts, Inc. ACRP Staff
Ms. Marci A. Greenberger, AAE
Ms. Therese "Teri" Norcross, CPA Senior Program Officer
Finance Manager Transportation Research Board
Missoula County Airport Authority Airport Cooperative Research Program
Ms. Tiana M. Barnes
Senior Program Assistant
Transportation Research Board
 Key Airport Participants
Long Survey Participants Short Survey Participants
Miami International Airport Small Hub
Corpus Christi International Airport Large Hub San Diego International Airport
Toronto Pearson International Airport Addison Airport Atlantic City International Airport
Arlington Municipal Airport Baton Rouge International Airport
Cincinnati/Northern Kentucky Int. Airport Baltimore Washington International Airport Corpus Christi International Airport
Churchill Manitoba Airport Chicago O’Hare International Airport Des Moines International Airport
Jackson Municipal Airport Denver International Airport Fresno Yosemite International Airport
Minneapolis/St. Paul International Airport Detroit Metro Airport Gerald Ford International Airport
Sacramento International Airport George Bush Intercontinental Airport Greenville Spartanburg International Airport
Fresno Yosemite International Airport Minneapolis/ St. Paul International Airport Huntsville International Airport
Hartsfield-Jackson Atlanta International Airport Long Island Macarthur Airport
Chicago O’Hare International Airport Medium Hub Preston Smith International Airport
Austin Bergstrom International Airport Tallahassee Regional Airport
Dallas/Fort Worth International Airport Cincinnati/Northern Kentucky Tucson International Airport
Reno-Tahoe International Airport Colorado Springs Municipal Airport Tulsa International Airport
McCarran International Airport General Mitchell International Airport Valley International Airport
Bangor International Airport Lambert St. Louis International Airport Wichita Mid-Continent Airport
Greenville Spartanburg International Airport Manchester Boston Regional Airport
Palm Springs International Airport Memphis International Airport
Jacksonville International Airport Sacramento International Airport Site Visits
Oakland International Airport South West FL. International Airport Dallas/Fort Worth International Airport
Charlottetown Airport Vancouver International Airport Miami International Airport
Memphis International Airport Albuquerque International Airport Addison Airport
Seattle Tacoma International Airport Greenville Spartanburg International Airport
Vancouver International Airport Non-Hub Sacramento International Airport
Winnipeg Airports Authority Bangor International Airport Toronto Pearson International Airport
Springfield Branson National Airport Grand Canyon National Park Airport Bangor International Airport
Salt Lake City International Airport Metropolitan Knoxville Airport Authority Gatwick London Airport
Louisville International Airport Missoula International Airport Brisbane Airport Corporation
Louis Armstrong New Orleans Int. Airport Pittsburgh International Airport Auckland Airport
Addison Airport Saint John Airport Canada Charlotte Douglas International
San Francisco International Airport
Tallahassee Regional Airport Conference Calls
Washington Dulles International Airport Port Authority of NY and NJ
Nashville International Airport Port of Seattle
Gatwick, UK 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.”

An organizational strategic plan is defined as:

“ Overall long-term plan for the organization that is derived from, and
embodies its vision, mission, values, business policies, stakeholder
requirements, objectives and the management of its risks.”

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 Aviation Planning, Seattle-Tacoma
– Identify and manage risks to the business International Airport, “Asset
Management is a planned and proactive
– Make better investment decisions strategy for optimizing the life of vital
– Extend asset life, reduce downtime, achieve facilities. The business management
better control over performance practices are based on total cost of
ownership for ongoing renewal,
– Align decision makers to a common purpose
maintenance and operation. They are a
– Respond more easily to changes in the source of competitive advantage and
regulatory and commercial environment 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 Better understanding of future needs to service customers competitively

Budget and Finance 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 Manager Planning requirements for infrastructure and assets included in airport asset
management plans
Engineering Manager Greater lead time on project work load, processes for continuous improvement in
design and construction standards, improved engineering records, data and
knowledge management
Operations Manager Support for and focus on achieving operating efficiency and effectiveness, and service
level outcomes
Maintenance Manager Increased support for improved maintenance processes and practices

Environmental Manager Awareness of the environmental consequences of infrastructure failures and ability to
pre-plan mitigations
Information Technology Greater awareness and understanding of the specific system functionalities needed to
support the business
How the model fits with current airport
planning approaches
RISK IDENTIFICATION OPPORTUNITIES

AIRPORTS STRATEGIC PLAN

RISK
MARKETING
MANAGEMENT BUSINESS PLAN MASTER PLAN LAND USE PLAN
PLAN
PLAN

INSURANCE AIR SERVICE CONTRACTS FACILITIES ACQUISITIONS

ASSET
MANAGEMENT
Business Finance PLAN

Planning and Development

Administration

RESOURCE AND
STAFFING PLAN

TRAINING AND
DEVELOPMENT
PLAN
Governance Structures
Best Management Practices – Asset
Management Planning

Airport AMP

Landside and
Airside Facility Baggage Handling System
and Systems
AMPs Passenger Boarding Bridge

Asset Strategies Conveyor

– MMI (Maintenance
Lift Column
Managed Item) Level
 “10 Step Process” to Asset Management

2. W hat is my required
1. W hat is the current state of my assets? level of service?
Determine
Develop Assess Determine S et Target
Life Cycle &
Asset P erformance, Residual Levels of
Replacement
Registry Failure Modes Life S ervice (LOS )
Costs

Determine Optimize Optimize Determine

B uild AM
B usiness Risk O&M Capital Funding
P lan
(“Criticality”) Investment Investment S trategy

3. W hich assets 4. W hat are my best O&M and 5. W hat is my best long-term
are critical CIP investment strategies? funding strategy?
to sustained
performance?

Source: US EPA Asset Management Training

 Asset Management Systems
Inventory
Warehousing
Receiving

• Integration between Work Rolling

financial and technical data Orders
Maintenance of
Stock
Asset
Tracking
Assets
and information Service
Contract/ Facilities
Vendors Requisition
Resource
Labor Materials

• Decision support tools to Tracking Historical

Data
Purchasing
analyze asset data and Inspections Equipment

information for optimized Preventative Budget and

investment decision making Maintenance Planning

Above systems update the data hub

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

Financial
Management
Information System
Business
Clean Data Data rules
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
Undertake an asset management maturity/gap
Primer Table of Contents assessment to prioritize an implementation roadmap:

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
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 10 Step Asset Management Plan development process:
Example for a Passenger Boarding Bridge (PBB)
Introduction and Guidebook Overview
Implementing an Asset Management
Framework: Establishing the Foundation 2. What is my required
Asset Management Objectives 1. What is the current state of my assets? level of service?
Asset Management Strategies and Plans Determine
Develop Assess Determine Set Target
Airport Information and Data Systems Life Cycle &
Asset Performance, Residual Levels of
Replacement
Implementation of Asset Management Registry Failure Modes Life Service (LOS)
Costs
Plans: Lifecycle Processes and Best
Appropriate Practices
Performance Assessment and Determine Optimize Optimize Determine
Build AM
Business Risk O&M Capital Funding
Improvement (“Criticality”) Investment Investment Strategy
Plan
Management Review
3. Which assets 4. What are my best O&M and 5. What is my best long-term
are critical CIP investment strategies? funding strategy?
to sustained
performance?
 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
Estimated
Installed Asset Original Condition
Asset Register and Hierarchy Effective
Date Class Cost Rating
Life $250,000
Current Year 2011 Year $ Years 1 to 10
Level 1 Level 2 Level 3 Level 4 Act or Est Tab A Act or Est Tab A Operations $
1 - Gate -11 Gate 1 PBB -111PC Air -1111 Air Hose 2010 2 $ 1,275 5 2
PM $
-1112 Condenser 2005 2 $ 2,705 15 3
-1113 Compressor 2005 3 $ 1,445 15 3 Capital $
$200,000
-112 400 Hz Power -1121 Cord 2010 5 $ 765 5 2 Avg Annual $
-1122 Plug 2008 5 $ 595 3 2
-1123 Retractor/Cable Hoist 2005 5 $ 765 15 5
-113 Potable Water -1131 Cabinet 2005 7 $ 595 15 7
-1132 Hose 2010 7 $ 1,725 5 2
-114 Interiors -1141 Wall covering 2005 7 $ 340 7 6 $150,000
-1142 Carpet 2008 7 $ 442 3 7
-1143 Hand rails 2005 7 $ 765 15 3
-115 Rotunda -1151 Bearings 2005 3 $ 595 15 8
-1152 Curtain 2008 7 $ 765 3 2
-1153 Base Column 2005 3 $ 9,000 15 2
-116 Pedestal 2005 7 $ 595 15 7 $100,000
-117 Tunnel assembly -1171 Tunnel Assemblies 2005 7 $ 85 7 7
-1172 Tunnel Roller Assemblies 2005 3 $ 8,600 10 8
-118 Wheel Bogie -1181 Assembly 2005 7 $ 595 10 6
-1182 Wheel 2005 3 $ 1,360 15 8
-1183 Tire Pneumatic 2008 3 $ 765 3 7
-1184 Wheel Motor DC Drive 2010 4 $ 595 5 6 $50,000
-1185 Wheel Motor AC Drive 2009 3 $ 4,250 5 5
-1186 Tire Solid 2005 3 $ 6,800 10 6
-119 Lift Column -1191 Lift Column Motors 2005 4 $ 5,100 15 6
-1192 Lift Column Ball Screws 2005 4 $ 850 15 6
-120 Cab Assembly 2005 7 $ 595 25 6
-121 Cab Curtain 2005 7 $ 765 15 6 $0
2011

2013

2015

2017

2019

2021

2023

2025

2027

2029
-122 Cab Bumper 2005 7 $ 595 15 7
-123 Stairs 2005 7 $ 595 15 6
-124 Bag chute 2005 7 $ 765 15 4
-125 Use/power meter 2005 5 $ 765 15 4

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Capital $ $ 2,000 $ 38,400 $ 3,500 $ 18,000 $ 48,000 $ 130,500 $ - $ - $ - $ 50,800
$294,617.85
Avg Annual $ $77,180.89 $77,180.89 $77,180.89 $77,180.89 $77,180.89 $77,180.89 $77,180.89 $77,180.89 $77,180.89 $77,180.89
Annual Depreciation $ $ 6,079.01 $ 6,079.01 $ 6,079.01 $ 6,079.01 $ 6,079.01 $ 6,079.01 $ 6,079.01 $ 6,079.01 $ 6,079.01 $ 6,079.01
PM $ $ 32,450 $ 32,450 $ 32,450 $ 32,450 $ 32,450 $ 32,450 $ 32,450 $ 32,450 $ 32,450 $ 32,450
Operations $ $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000 $ 30,000
For more information contact:

Report 69 Principal Investigator:

Larissa James [email protected]
or
Crystal McNeely [email protected]

THANK YOU