National Academies Press: OpenBook

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

Chapter: Chapter 6 - O&M Ready Connecting Life-Cycle Elements

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Page 49
Suggested Citation:"Chapter 6 - O&M Ready Connecting Life-Cycle Elements." National Academies of Sciences, Engineering, and Medicine. 2017. Guidebook for Considering Life-Cycle Costs in Airport Asset Procurement. Washington, DC: The National Academies Press. doi: 10.17226/24764.
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Page 49
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Suggested Citation:"Chapter 6 - O&M Ready Connecting Life-Cycle Elements." National Academies of Sciences, Engineering, and Medicine. 2017. Guidebook for Considering Life-Cycle Costs in Airport Asset Procurement. Washington, DC: The National Academies Press. doi: 10.17226/24764.
×
Page 50
Page 51
Suggested Citation:"Chapter 6 - O&M Ready Connecting Life-Cycle Elements." National Academies of Sciences, Engineering, and Medicine. 2017. Guidebook for Considering Life-Cycle Costs in Airport Asset Procurement. Washington, DC: The National Academies Press. doi: 10.17226/24764.
×
Page 51
Page 52
Suggested Citation:"Chapter 6 - O&M Ready Connecting Life-Cycle Elements." National Academies of Sciences, Engineering, and Medicine. 2017. Guidebook for Considering Life-Cycle Costs in Airport Asset Procurement. Washington, DC: The National Academies Press. doi: 10.17226/24764.
×
Page 52

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Case Studies 49 A challenge for longevity of the project may be maintaining the leadership’s dedication to the project through future transitions. A group of asset management leaders will need to be estab- lished to carry on the program. Standards Implementation GTAA is implementing and embracing the concepts of the asset management standards ISO 55000 and PAS 55; however, it is not looking to be certified in it. Additionally, the airport is certified in environmental management standards ISO 14001. The asset management program started within the facilities business unit and then was implemented throughout the airport. Key Performance Indicators KPIs were established at GTAA’s leadership and used in the underlying business units. By adopting these KPIs at the leadership level, GTAA ensures alignment throughout the organization with a focus on performance goals. GTAA’s vision, goals, values, and behaviors are presented in Figure 8-1. Asset Management Governance To achieve these benefits from Maximo, GTAA established a governance model in 2013 (Figure 8-2). The governance model integrates the functions at both the land (terminals) and air sides (aviation). The governance model is divided into two parts: • Asset management board • Maintenance improvement teams (MITs) This model makes sure that there is continuous communication between the different business units. Additionally, this model gets people on board and drives the efficiency in implementation. Source: GTAA Figure 8-1. GTAA’s vision, goals, values, and behaviors.

50 Guidebook for Considering Life-Cycle Costs in airport asset procurement Figures 8-2, 8-3, 8-4, and 8-5 illustrate the aviation and terminals asset management boards and the maintenance improvement teams. The governance model includes maintenance improvement team members and supervisors from different fields. The team members perform the following duties: • Look at the performance on a monthly basis • Document what they have done and how they can improve it Source: GTAA Figure 8-2. Relationship between the asset management board and maintenance improvement teams. Source: GTAA Figure 8-3. Aviation asset management board.

Case Studies 51 Source: GTAA Figure 8-4. Terminals asset management board. Source: GTAA Figure 8-5. Maintenance improvement team.

52 Guidebook for Considering Life-Cycle Costs in airport asset procurement Figures 8-6 through 8-10 present various performance metrics that were measured at GTAA during December 2015. Figure 8-6 presents the key performance metrics and their performance; Figure 8-7 presents the preventive maintenance compliance performance metric; Figure 8-8 pre- sents the baggage performance metric; Figure 8-9 presents the passenger boarding bridges (PBB) performance metric; and Figure 8-10 presents the people-moving devices (PMD) performance metric. Figure 8-11 shows the calculations equations for these metrics. Total Cost of Ownership GTAA implements TCO in its procurement processes. TCO has been in place since 1999/2000 and is mainly used for key large assets that move people such as elevators, escalators, automated people movers, transportation systems, and baggage-handling systems. The development of the TCO process was across the airport organizational business units, including executive management, finance, planning, engineering, facilities, and IT. The execu- tive management team was the main driver for TCO and provided the needed support to make it happen. During the initial TCO implementation phase, some barriers were from operations; however, through communication and joint collaboration, these issues were overcome. TCO currently resides in facilities, engineering, and IT; however, every business unit has a seat at the table and collaborates with one another. This cross-collaboration ensures the sharing of *Jams: Baggage unable to move due to being stuck **PBB: Passenger Boarding Bridges ***HSW: High Speed Walk; FEM: Alias of specific unit. Source: GTAA ** *** * Figure 8-6. Key performance metrics during December 2015.

Next: Chapter 7 - Asset Commissioning and Turnover Process »
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TRB's Airport Cooperative Research Program (ACRP) Research Report 172: Guidebook for Considering Life-Cycle Costs in Airport Asset Procurement explores how other industries use the total cost of ownership (TCO) approach for initial procurement, and how to integrate this into future airport procurement practices. A

TCO Tool

and five

instructional videos

on how to use the TCO Tool accompany the report.

Airports, as well as other governmental entities, usually are required to take the lowest bid when procuring assets. This approach tends not to take into consideration the life-cycle costs, such as the operation and maintenance (O&M) costs, which can result in higher than anticipated costs from the O&M budget. Since the purchase of assets is allocated from capital funds that are managed by a person typically different than the person responsible for the day-to-day management of O&M funds, there can be a disconnect on what is considered “better” when considering two bids. Taking a life-cycle, also known as a TCO approach, to the initial procurement may ensure a more fiscally responsible use of funds.

Disclaimer - This software is offered as is, without warranty or promise of support of any kind either expressed or implied. Under no circumstance will the National Academy of Sciences, Engineering, and Medicine or the Transportation Research Board (collectively "TRB") be liable for any loss or damage caused by the installation or operation of this product. TRB makes no representation or warranty of any kind, expressed or implied, in fact or in law, including without limitation, the warranty of merchantability or the warranty of fitness for a particular purpose, and shall not in any case be liable for any consequential or special damages.

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