Asset Management – what it is (and isn’t). 2013 WASHINGTON STATE PUBLIC TRANSPORTATION SYMPOSIUM Darin Johnson, BIS Consulting. Introduction to BIS. Key Services Decision-support for power and water utilities, transit agencies. Health Indexing, risk assessment. Third-party business case.
Asset Management – what it is (and isn’t)
2013 WASHINGTON STATE PUBLIC TRANSPORTATION SYMPOSIUM
Darin Johnson, BIS Consulting
Asset management bridges this gap
“…total benefits of a project
to whomsoever they accrue
exceed the costs of that project.”
There is a time to pursue good data collection, storage and access; analytical tools; and integration. That time is not at the beginning.
First example – managing aging infrastructure
Technical approach fails to consider risk quantitatively
KNEE OF CURVE
N% FAILURE RATE
40% reduction in capital
15% reduction in life-cycle
Second example – WSF seismic upgrade business case
Calculating annual risk
330-year event: $870
224-year event: $1,000
72-year event: $7,200
Total annual seismic risk at Vashon Island trestle = $1.5 million
Minimum life-cycle cost
Final example - Prioritizing service in the face of shrinking budgets
Big decisions are usually about trading dollars for service…
Level of Service
Level of service, expressed in customer served
Capital costs, expressed in dollars
I’d pay $100 for this service.
We’d each pay $5
…”dollarizing” is unavoidable.