Guidebook for Considering Life-Cycle Costs in Airport Asset Procurement (2017)

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Building Information Modeling in the asset Management Life Cycle 37 At the highest level, the resulting matrix provides documents as information requirements from the supply chain. The same methodology can be applied to a more granular level of detail as the BIM maturity of the supply chain and organization grows. The target for this methodology would be to provide asset-level attribution requirements linked to information models. This can be presented in a tabular format of international standard such as COBie. Plan of Work The next step is to use the resulting matrix to formulate a plan of work. This plan of work would empower the supply chain to understand and provide the information requested in the formats specified. This can be data extraction from three-dimensional models, analysis packages, spreadsheets, and databases linked to models. As a result of this approach, the organization making the request for information leaves the responsibility for using the best solutions and technologies available to provide the information to those who know them. By providing a clear framework, there is opportunity for three-dimensional models, animations, and advanced visualizations, as well as reduction in data transfer across systems, linkages across facility management tools, and all the other value-adds that BIM models can provide. This mechanism provides the means to enable BIM in a consistent, standardized, and timely manner with minimal changes to organizations. Alignment of Tools/Systems The plan of work will enable information and data to be transferred at the right time, to the right level of detail, and to the right person. To fully see the benefits, an organization may need to review its internal IT systems and tools that may be able to extract, receive, or use BIM data in a meaningful way with minimal rework. If new IT is required, the business case justification can often be proved in a comparison of time saving against re-inputting data or lost time finding information. The use of an international standard for data delivery such as COBie means that all asset-level data delivered will be of a consistent format and, if any tools are required to be developed, they can be developed once to extract or read this data and re-purpose it for asset management needs. Alignment of the Team Another part of any BIM implementation will be the training of people to understand the new concepts and processes that BIM will bring. Any change to an organization may cause some alarm to team members. An approach that has been successful is to identify BIM champions or points of contact within each office and supply chain, and meet with them well in advance of any implementation. This approach allows the points of contact to engage in the decision- making process and provide insight from their perspective and their teams, which often leads to better workflows and buy-in from each party. This early engagement also allows issues to be mitigated well before any actual implementation. A period of 12 months of regular engagement Questions Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 How much will it cost? Optioneering report Full business case Outline design cost estimate Tender evaluation report Out-turn cost Actual cost Table 5-1. Example of organization information needs for project-level cost.

38 Guidebook for Considering Life-Cycle Costs in airport asset procurement before implementation is seen as ideal as this allows understanding of BIM; the development of standards, workflows, and agreements; and some early adopter projects and trials to occur. Airports Implementing Building Information Modeling Airports worldwide are starting to adopt and implement BIM, whether as part of government initiatives or better asset management practices. This implementation will lead to capital and operational expenditures savings. London Gatwick Airport has implemented BIM as part of the UK BIM initiative. This initia- tive has the goal of reducing the cost of government construction projects by 20 percent while assuring compliance with the EU’s carbon emissions standards. Denver International Airport is the largest airport in the United States in terms of area (53 square miles) and the fifth busiest airport in the United States. The airport leadership and facilities management realize the challenge in managing the existing and future assets at the airport. The airport is striving, through BIM implementation, to make the maintenance activities more efficient and reliable. Additionally, they expect that construction activities within the airport will be faster and more coordinated between the different entities. This will positively reflect on the services provided by the airport to its stakeholders, including passengers. Conclusion For the aviation industry, there are four main stages of works that could be implemented to enable effective use of BIM and provide the framework by which better asset management can be delivered. The first stage is to develop an understanding of the information requirements in an organiza- tion. This will define the data required, when it is required, the format it is required in, and who is providing the data. The second stage is to build on these information requirements and develop a plan of work that formalizes these requirements. This plan will enable effective life-cycle analy- sis and TCO studies to be undertaken earlier to better inform asset management decisions. The third stage is to review the existing systems to determine any alignment changes or developments required to enable the flow of data into existing systems. This review will dramatically reduce the time required to locate, read, and input data from the supply chain. The final stage, and the most important one, is to engage with teams both internally and externally to adopt BIM as a new stan- dard. This is a shift in operation and thus best managed by BIM champions and early engagement. The early engagement will bring everyone together early to work as a team. This will maximize the impact of BIM and reduce any hesitation during adoption. In conclusion, with careful development of standards, processes, and the supply chain, an organization can set a framework for the use of BIM in delivering good quality data for asset management at any point in the asset life cycle. The presented case study was for the procurement of new assets and the data created from design, but the principles shown can be adapted to exist- ing assets to bring about a paradigm shift in the way assets and asset management are considered.

39 As previously defined, asset management is a set of practices focused on sustaining assets throughout their whole life cycle. It considers the short- and long-term strategies and the alignment between the different busi- ness units and stakeholders. To render the full benefit of an asset management program requires these differ- ent parts to be integrated. This chapter discusses the concept of O&M Ready as the means to connect various operational processes to the life-cycle phases of the asset. O&M Ready Defined O&M Ready evaluates industry’s best asset/facility management practices and the facility manager’s future O&M needs. The requirements from O&M Ready are incorporated in the design and construction delivery process. The O&M Ready process has been used across indus- tries including transportation, water resources, facilities, and power and energy in both private and public sectors. O&M Ready has application for airports since they traditionally have multiple departments that apply different tools and standards for asset maintenance. Having these different asset man- agement processes in place at airports’ business units establishes communication and opera- tional gaps (Figure 6-1). In order to close these gaps, a systematic view of asset procurement and ownership needs to be established. Upfront planning-, design-, and procurement-level decisions set the tone for proper asset management planning and a full understanding of the assets’ whole life cycle. During the initial phases of a new project (planning and design), a significant opportunity exists to provide careful thought and insight into enhancing the commissioning process. The value of making this effort is clear when one considers that design and construction expenditures, the so-called “first costs” of a facility, typically account for 5 to 10 percent of the total life-cycle costs while O&M costs typically are 60 to 85 percent. O&M Ready brings attention to the facility manager’s needs and interests as they relate to the greater part of the assets’ life—the O&M phase. Figure 6-2 illustrates how O&M Ready fills the procurement gap and supports a robust, reli- able, repeatable, and sustainable process. Benefits of O&M Ready Although O&M Ready is a fairly a new concept in asset management, it has been shown a high degree of interest by staff who directly manage assets as part of their work responsibilities. The following are a few benefits that stem from implementing O&M Ready (Fortin 2007): • Integration of technologies, as appropriate, facilitates converting data into knowledge for accurate decision making (i.e., operational and renewal/replacement). C h a p t e r 6 O&M Ready—Connecting Life-Cycle Elements

40 Guidebook for Considering Life-Cycle Costs in airport asset procurement Figure 6-1. Existing gaps in capital asset procurement silos. BIM information, record drawings, preventive maintenance, warranty data, and CMMS bridge are incomplete Figure 6-2. O&M Ready, the approach to closing the procurement gaps.

O&M ready—Connecting Life-Cycle elements 41 • Having preventive maintenance programs ready at turnover ensures timely asset protection, reduces risk of premature failure, and supports warranty claims. • Proper preventive maintenance programs control impacts of deferred maintenance and reduce risks. • The use of condition-monitoring tools such as oil analysis, infrared thermography, and vibration analysis helps identify installation defects that normally go undetected and reduce asset life. • Reliability-centered design establishes proper spare part inventory quantities for critical assets. • Consistently, the organization experiences a smoother transition from design and construc- tion to the O&M phase of the asset life cycle. Implementing O&M Ready at Airports As part of the research informing this guidebook, airport personnel were asked to rate 12 O&M Ready statements, based on their relevance to successfully implementing TCO. Figure 6-3 presents the ranking of the 12 statements based on the individuals’ input. All the statements have an average score of 7 or higher, indicating that those surveyed felt all are at least somewhat relevant to successful implementation. The top five statements from the list are: • Executive-level support for a total TCO approach (score: 10) • Use of TCO data in capital asset decision making – Internal procurement (score: 9) • Inclusion of life-cycle costing criteria in choosing assets in projects designed and built at the airport (score: 9) • Availability and reliability of TCO data (score: 9) • Project teams work with contractors during the commissioning process (score: 9) Establishing data links between BIM informa on, record drawings, preven ve maintenance, warranty data, and CMMS Low Relevance High Figure 6-3. Statements rated based on their relevance to successfully implement TCO in terms of considering operational readiness.

42 Guidebook for Considering Life-Cycle Costs in airport asset procurement Implementing O&M Ready From this survey, it is clear that the most important drivers for O&M Ready implementation are leadership buy-in and availability of data and information. Based on this and additional research, the following activities will help to ensure successful implementation of O&M Ready at airports (Fortin 2007): • Create owner-developed equipment turnover specifications; these specifications detail the requirements such as naming, preventive maintenance program, spare parts, and asset labeling/ bar coding • Initiate third-party development of the new equipment’s preventive maintenance program for use in a CMMS • Include design review processes that consider concepts such as reliability, availability, and maintainability, and reliability-centered design • Standardize asset data/information for use with various management technology systems • Consider use and integration, as appropriate, of facility management software systems such as CMMS, BIM, energy management systems, GIS, computer-aided facility management, and financial management systems • Employ stricter equipment installation specifications requiring verification with state-of-the- art tools • Recommission critical equipment assets to identify operational and performance issues before warranty expiration • Supply enhanced training programs that provide staff adequate and regular training during the warranty period

43 To exhibit components of the O&M Ready process within a real situation, this chapter discusses the new asset turnover process as a best practice within an asset management program, using the Metropolitan Sewer District of Greater Cincinnati as an example. Case in Point: Metropolitan Sewer District of Greater Cincinnati The Metropolitan Sewer District of Greater Cincinnati (MSDGC) is located in Cincinnati, Ohio. MSDGC manages and operates the wastewater collection, treatment, and disposal systems to serve around 800,000 customers within Hamilton County, Ohio. The wastewater treatment division operates and maintains seven treatment plants and more than 100 smaller facilities that process an average of 180 million gallons of sewage per day. The majority of its facilities were built in the 1950s and contain more than 16,000 discrete assets that are critical to meet the operational needs. As any public utility, MSDGC faces many challenges such as tight budgets, increased reg- ulatory requirements, retiring workforce (knowledge/capacity), and aging/degrading infra- structure. In 2007, the wastewater treatment division started instituting the initial blocks and elements of a modern asset management program. The program included an updated asset hierarchy, equipment strategies, modern planning and scheduling practices, and maintenance key performance metrics. Through the implementation of this asset management program, the proactive work ratio has improved to 50 percent; reliability levels are stabilizing; the maintenance work order cost reduc- tion was around $500,000 in 2012 and the same in 2013; the monthly emergency failure rates decreased by 55 percent; and the documented cost avoidance was over $650,000 due to proactive maintenance activities. The personnel within the program kept on building on one success after the other to achieve a world-class asset management program. Turnover Process A well-documented turnover process, such as is in place at MSDGC, closes the gaps between the business units and stakeholders during the different phases of a project. It also establishes a robust asset commissioning process to reduce risk and better manage cost. The turnover process at MSDGC is illustrated in Figure 7-1. As shown in the figure, many parties are involved in the new asset turnover process, including the following: • Wastewater treatment (WWT) reliability group • Design engineer consultant C h a p t e r 7 Asset Commissioning and Turnover Process

Figure 7-1. Example of asset management activities for a capital project at MSDGC.

asset Commissioning and turnover process 45 • Construction contractor • WWT planning group • WWT predictive maintenance group The turnover process starts during the design phase with the following activities: • The design engineer consultant develops the piping and instrumentation diagram to 90 per- cent completion. • The WWT reliability group populates CMMS with the functional location numbers. • The reliability group provides the list of functional location numbers and specifications. • The reliability group along with the design engineer assign the functional location numbers on the piping and instrumentation diagrams. • The reliability group develops asset records and assigns assets to the associated location record in CMMS. Once the design phase activities are completed, the design phase starts. The design phase includes the following activities: • The design engineer consultant and construction contractor attach the appropriate electronic documents (submittals, bill of materials, final O&M manuals, and as-built drawings) to assets in CMMS. • The construction contractor develops spare parts record and special tools record in CMMS. • The WWT reliability group, design engineer consultant, and construction contractor update asset locations and records in CMMS to capture changes during construction. • The WWT planning group places the asset identification tag on assets. • As part of the WWT reliability group, the reliability-centered maintenance team (operations, maintenance, and engineering) performs reliability-centered maintenance analysis for quali- fying systems. Once the contractor completes its work, the turnover phase starts for O&M. This includes the following activities: • The WWT planning group updates the maintenance strategy based on reliability-centered maintenance output such as job plans, predictive maintenance, preventive maintenance, and routes. • The WWT planning group decommissions old assets, locations, and spare parts in CMMS. • The WWT predictive maintenance group performs predictive maintenance baseline testing on the new assets, enters the new asset in Tango (software that manages the facility’s reli- ability information to create accountability and ensure proper procedures are taken to repair or eliminate failures), and updates the predictive software and oil analysis database with new asset data. Results Through this documented turnover process, the communication between the different parties is clear and the responsibilities are identified. The different maintenance activities for this asset are documented in the asset management system. Additionally, the spare parts are identified and the critical ones become part of the storeroom inventory. Collectively, these activities have a significant impact on the TCO for the asset and reduce the risk on the organization, where the asset will directly add value to the system.

46 Case study participants chosen for incorporation into this guidebook have relevant experience in implement- ing asset management and TCO methods throughout their organizations. This chapter provides a range of perspectives by presenting case studies of airports and non-airport organizations with relevance to the airport industry. Airports All three of the airports that are covered in this case study analysis are classified as large hub airports: • Toronto Pearson International Airport, Canada • Phoenix Sky Harbor International Airport, US • Hartsfield–Jackson Atlanta International Airport, US Toronto Pearson International Airport Toronto Pearson International Airport (YYZ) is the largest and busiest airport in Canada. The airport is a hub for around 400,000 flights and in 2015 it served more than 41 million passengers. Over the last 2 years, the airport has seen unprecedented growth of around 7 percent. It is con- sidered the second largest access point to North America, second only to John F Kennedy (JFK) International Airport. US passengers come from Europe through YYZ and process through customs and border control, arriving subsequently into the US as domestic passengers. The focus in YYZ is about improving passenger flow and creating dwell-time so transit passengers have an opportunity to enjoy the travel experience. An independent non-profit authority, the Greater Toronto Airports Authority (GTAA), manages the airport. GTAA operates within the south-central region of Ontario on a com- mercial basis to set the fees for use and to develop and improve the facilities. Approximately 1,500 employees are employed directly by the GTAA. Airport Planning and Technical Services (APTS) that includes engineering, maintenance, project management, and technical perfor- mance employs 350 employees. Asset Management Program at GTAA In the 1970s, Transport Canada made a decision to computerize systems. An airport main- tenance management system (AMMS) was developed and deployed to all airports in Canada at that time. When Canadian airports were subsequently transferred to private management, they were given the AMMS for their own internal management. From 1996 until the current time, the system has been in place and has been managed and developed internally by GTAA. The C h a p t e r 8 Case Studies

Case Studies 47 AMMS at GTAA has robust data and detail, with processes and workflow built into the software, although additional maintenance tools for pavement management and total cost complete the full asset management program at the airport. Other systems that exchange data with the AMMS include the following: • Maximo CMMS • Oracle financial system • Kronos time management system • Perspective incident management system • Fuel dispensing system • Scheduling via spreadsheet tool (Scheduler – an in-house application) • MicroPaver pavement management system • SCHAD work order mobile application • AQUAdata for condition assessment of sewer, stormwater, and potable water systems • Drawing data management system • GIS One deficiency in the AMMS data concerns maintenance performed by outside contractors, in particular, for contractors maintaining elevators. These contractors maintain data in their own asset management system. Because of the additional cost required to enter data into the AMMS, that data has not been available directly. Asset Management Usage GTAA acknowledges that the aviation industry cycles through many challenges, relative to changing economics and commuter trends. This recognition has driven the implementation of its asset management program, designed to help staff understand and address the following financial challenges that face GTAA: • Problematic future budgetary allocation • Competing capital priorities to leverage the business case evaluation process • Lack of resources, especially highly trained and specialized technicians and supervisors It is understood that these challenges impact every business unit within the airport. A specific example of use of the AMMS is a report used to identify risks. Approximately 9 years ago, the staff established system hierarchies with component breakdown. For each system, it developed a probability of failure, i.e., risk-based profiles for the systems. Each year, the staff validates that model and, from the risk profiles, produces a document of high-risk systems and risk mitigation measures. Maximo Implementation Challenges in managing the AMMS and the need for a full-featured asset management system has led the airport to implement Maximo as a new asset management solution. GTAA has collaborated with other airports that have had successful asset management system rollouts with the intention of leveraging their successes and lessons learned. These collaborations have affected the methods being used at GTAA. Their implementation has been methodical, and considered. Currently, the Maximo inventory module is live and owned by APTS. The fleet and passenger boarding bridging modules went live in April 2016, with rollout completed by the end of 2016. At the time of writing, initial interfaces were in construction and to be integrated with Oracle to enable the exchange of data between the airport financial systems. Other interfaces will be built as the system matures. Asset data from the AMMS is being migrated to Maximo, but the difficulties of migrating asset history are creating barriers to completion.

48 Guidebook for Considering Life-Cycle Costs in airport asset procurement Training is being scheduled for users at a time just before the rollout through the Maximo sys- tem provider (EDI). Two types of trainings will take place: super-user and end-user. In addition, changes in the organization to fully use the features within Maximo have catalyzed organizational restructuring to support the implementation (see the Asset Management Governance section). There are some challenges as the new system comes online. A primary challenge is in getting staff and management buy-in to system and process change—the human factor. Accordingly, GTAA has ensured there is strong leadership at APTS, championing the advantages and neces- sity of the change, as well as early, frequent, and relevant communications about the project. The philosophy at GTAA has included collaboration and inclusion. Strategies used for the Maximo rollout at GTAA, shared by APTS include the following: • Change process is sustainable only when people are on board. • Leaders have to sell the idea. • Good change management is pivotal. • Good communication requires explaining to all staff what is going on and giving people time to adjust. • Involve people. • Show the employees the value. • Do not make change seem arbitrary; show staff that the change is beneficial. Challenges in the Program Additional challenges in an overall asset management program include the following: • Ensuring asset management objectives are established and compatible with organizational objectives • Ensuring integration of asset management systems into the airport’s procurement processes • Continual improvement and managing risks • Promoting cross-functional collaboration between the business units • Finding the correctly qualified resources in a small market (asset management specialization is hard to find, particularly in management) • Dealing with documentation turned over during the commissioning not always being adequate • Dealing with the right assets not necessarily being specified during the specification process • Obtaining stakeholder reviews because many stakeholders do not take the time • Dealing with contractors who think that the asset’s data should be developed after commis- sioning instead of during the project • Managing smaller projects because they do not have the same level of governance Getting people on board is difficult. The advantages/disadvantages of an asset management program do not show up for years. An example cited during the interview: It is hard to get people excited about one elevator lasting longer than another. Most pressures are more imme- diate than cost of ownership. It may become apparent to management that the benefits of the asset management program are invaluable to the airport as it matures. As managers and leaders begin to realize the utility provided, there may be disciples from within the airport. Some of these expected benefits from the Maximo implementation will include the following: • Proactive risk management based on historical costs • Having ready-access to performance dashboards • Producing accurate reporting (monthly, quarterly, and annual) • Improved data-driven decision making • Tracking labor cost through integration with the Oracle financial system