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From page 56... ... 56 Guidebook for Considering Life-Cycle Costs in airport asset procurement which reduced the risk on the airport. Additionally, through the TCO process, the relationship between the airport and the vendor personnel has become stronger at multiple levels within both organizations. Read the entire page →
From page 57... ... Case Studies 57 • Maintain a good supply chain • Improve vendors' lead times The preceding objectives are mainly at the procurement functional level. However, the specifications are the ones that manage the service level. Read the entire page →
From page 58... ... 58 Guidebook for Considering Life-Cycle Costs in airport asset procurement PHX employs 800 full-time equivalent employees, with about one-half of these in the Facilities and Services Division. A total of 14,000 employees work for the City of Phoenix. Read the entire page →
From page 59... ... Case Studies 59 (i.e., financial, assets, operations, procurement, inventory, administration, and human resources applications) , SAP was first used centrally at the City of Phoenix in the early 1990s. Read the entire page →
From page 60... ... 60 Guidebook for Considering Life-Cycle Costs in airport asset procurement Unifier is integrated with SAP. Commissioning documents provided by vendors (e.g., asset manuals, lists of critical assets, maintenance schedules, etc.) Read the entire page →
From page 61... ... Case Studies 61 city-wide. With the new system, the procurement process has changed so buying is done primarily by the City. Read the entire page →
From page 62... ... 62 Guidebook for Considering Life-Cycle Costs in airport asset procurement The airport tracks KPIs and performance, weekly, monthly and annually. Implementing performance measures allows the airport to focus on results, not the activities required to achieve them. Read the entire page →
From page 63... ... Case Studies 63 efficiency and sustainability in the areas of procurement, design, operations, maintenance, and decommissioning. The associated costs for each asset reside in different databases throughout the organization: • Utility costs for the airport's assets reside in the City of Atlanta's utility management system. Read the entire page →
From page 64... ... 64 Guidebook for Considering Life-Cycle Costs in airport asset procurement sustainable construction requirements on some projects such as the pavement recycling program, a comprehensive manual that outlines sustainable construction requirements for all projects is being developed. The sustainable construction manual will establish guidelines for all construction work conducted at ATL. Read the entire page →
From page 65... ... Case Studies 65 NR has a diverse set of assets, including 20,000 miles of track, 40,000 bridges and tunnels, and 2,500 railway stations (however, only 19 of them are managed by NR; other stations are managed by other operating companies) , in addition to the signals, wires, and level crossings. Read the entire page →
From page 66... ... 66 Guidebook for Considering Life-Cycle Costs in airport asset procurement Even though NR has an established and robust asset management program, it is continuously working on integrating the business functions such that they work toward a common goal. One of the main challenges NR envisions is the consistency and depth of implementation across a functionality and geographic diverse organization. Read the entire page →
From page 67... ... Case Studies 67 NR implements a whole-life-cycle costing (WLC) approach in managing its assets. Read the entire page →
From page 68... ... 68 Guidebook for Considering Life-Cycle Costs in airport asset procurement The main success factors behind this effective implementation of WLC were the buy-in from the employees, ease of implementation, external stakeholders' support, commitment to competency development, and mandating the WLC process. However, the most important factor for success was securing funding "internally and externally" (linking investment approvals to WLC) Read the entire page →
From page 69... ... Case Studies 69 KONE collects TCO data from assets it manages and uses it to calculate life-cycle costs, and could use it to improve asset reliability and passenger experience. The collected data includes: planning and design, installation and commissioning, operation, maintenance, and disposal. Read the entire page →
From page 70... ... 70 Guidebook for Considering Life-Cycle Costs in airport asset procurement All of the airports in the studies are large hub airports. Attempts to engage small and medium airports in case studies failed. Read the entire page →
From page 71... ... Case Studies 71 services provided to the stakeholders. The reliability of the systems increases, and the capital and operational budgets can be better managed. Read the entire page →
From page 72... ... 72 Guidebook for Considering Life-Cycle Costs in airport asset procurement • While the SAP system provides a warehouse for a great deal of data for thousands of the airport's assets, it does not provide much of the functionality that the airport would like to have to manage its assets proactively. • The airport is financially independent from the city, as the airport-generated revenue is used for its capital and operational budgets. Read the entire page →
From page 73... ... Case Studies 73 • NR utilizes WLC in procuring all major railway infrastructure assets. Many decisions are based on WLC. Read the entire page →
From page 74... ... 74 There were two components to the ACRP project "Considering Life-Cycle Costs in Airport Asset Procurement." The first part is this guidebook, and the second part is development of a systematic TCO approach to asset procurement (in the form of a software tool) to improve decision making and optimize the use of capital and operating funds. Read the entire page →
From page 75... ... total Cost of Ownership tool 75 asset life. Each asset element life cycle is divided into capital and O&M to reflect the differences in the cycle (number of years) Read the entire page →
From page 76... ... Figure 9-1. Data flow diagram of TCO Tool methodology. Read the entire page →
From page 77... ... total Cost of Ownership tool 77 Parameter 1 Pre-procurement 1.1 Consulting Fees 1.2 Business Case Development 1.3 Design Cost 1.4 Procurement Process/Documentation 1.5 Permits/Fees 2 Procurement 2.1 Site Preparation 2.2 Asset Cost (equipment, material, etc.) 2.3 Processing Cost 2.4 Shipping Cost 2.5 Insurance Cost (shipping) Read the entire page →
From page 78... ... 78 Guidebook for Considering Life-Cycle Costs in airport asset procurement Asset Elements 13 IT Systems 13.1 Servers, workstations and displays 13.2 Network equipment (including switches and routers) and cabling 13.3 Mobile devices including tablets and mobile phones 13.4 Scanners and other devices 15.4 Servers, workstations, and displays 15.5 Network equipment (including switches and routers) Read the entire page →
From page 79... ... total Cost of Ownership tool 79 More information is available on the Microsoft TechNet website (https://technet.microsoft. com/en-us/library/ee624351.aspx) Read the entire page →
From page 80... ... 80 After deciding to adopt any new asset management program, methodology, or tool comes the implementation process. This chapter describes the means to ensure that an organizational initiative is successful and has sustainable benefits. Read the entire page →
From page 81... ... procurement Best practices Implementation 81 – Lead by example – Task management – Active monitoring • FORCE – Strategic Execution Imperatives – Follow through – actions and activities – Organized – Treat initiative as a capital project – Respect among team members – Culture awareness – Entrepreneurial spirit encouraged The DELTA is an effective execution strategy that can be utilized when leaders decide to shift from an existing condition to one that is considered more efficient and effective. This process is presented in Figure 10-1. Read the entire page →
From page 82... ... 82 Guidebook for Considering Life-Cycle Costs in airport asset procurement Source: Fortin (2016) Read the entire page →
From page 83... ... procurement Best practices Implementation 83 Governance A senior management representative should be assigned responsibility for the change initiative as the executive sponsor. This person represents corporate commitment to the project, is held accountable for success/failure to peers, and ensures appropriate resources are made available to the implementation team. Read the entire page →

From page 56...

... 56 Guidebook for Considering Life-Cycle Costs in airport asset procurement which reduced the risk on the airport. Additionally, through the TCO process, the relationship between the airport and the vendor personnel has become stronger at multiple levels within both organizations.