Strategic Asset Management Plan IMPROVEMENT PROGRAM AND IMPLEMENTATION WORKPLAN

Transcription

1 Strategic Asset Management Plan IMPROVEMENT PROGRAM AND IMPLEMENTATION WORKPLAN

2 MAY 2018 This report was prepared by WSP for the account of Denver International Airport, in accordance with the professional services agreement. The disclosure of any information contained in this report is the sole responsibility of the intended recipient. The material in it reflects WSP USA s best judgement in light of the information available to it at the time of preparation. Any use which a third party makes of this report, or any reliance on or decisions to be made based on it, are the responsibility of such third parties. WSP USA accepts no responsibility for damages, if any, suffered by any third party as a result of decisions made or actions based on this report. This limitations statement is considered part of this report. The original of the technology-based document sent herewith has been authenticated and will be retained by WSP for a minimum of ten years. Since the file transmitted is now out of WSP s control and its integrity can no longer be ensured, no guarantee may be given with regards to any modifications made to this document.

3 Table of Contents 01 Section 1: Introduction & Overview 03 Section 2: Asset Management Foundation A Life-Cycle Approach Linking Asset Management to DEN s Strategic Plan Asset Management Standards Risk Management 09 Section 3: Improvement Initiatives and Overall Pathway Structure Implementation Pathways Program Foundational Activities SAMP Improvement Initiative Work Plans 20 Section 4: Proposed Schedule 21 Section 5: Measuring Outcomes 29 Section 6: Implementation Considerations Initiative Ownership and Management Workforce and Staffing Ongoing Management and Performance Tracking Communication and Change Management Implementation Risks and Uncertainties 36 Appendix A: SAMP Improvement Initiative Work Plans 63 Appendix B: Improvement Initiative Matrix

4 Figures 04 Figure 1: Asset Management applied to Asset Life-Cycle 08 Figure 2: A Risk-Based Approach to Decision Making 18 Figure 3: Improvement Initiative Template 20 Figure 4: Proposed Implementation Schedule 21 Figure 5: Sample Preventive Maintenance Schedule Compliance: HVAC Tables 06 Table 1: DEN Strategic Plan Goals and Alignment with Asset Management 19 Table 2: Sample Improvement Initiative Matrix 33 Table 3: Asset Management Program Level Performance Measures

5 SECTION Introduction & Overview The purpose of this document is to establish an ongoing plan for asset management improvement at Denver International Airport (DEN). This document presents a long-term roadmap, incorporating a comprehensive set of improvement initiatives aimed at supporting the goal of establishing a best in class program that continually improves management of DEN assets over their entire life-cycle, optimizes performance and reliability in a cost-effective manner, and exceeds customer expectations. The roadmap provides a structure and schedule that will allow DEN to effectively apply risk-based decision making principles to financial and business decisions, delivering enhanced outcomes. This plan is meant to be flexible and adaptable, with the intent of creating a living document with periodic reviews, adjustments, and updates. The plan draws upon the prior gap analysis and planning efforts conducted in 2017, and incorporates over 30 individual initiatives that are expected to be implemented over time. While this plan incorporates a long-term view, there is specific emphasis placed on the highest priority initiatives planned over the next two years. The plan builds on DEN s existing foundation, recognizing the ongoing progress made by the Asset Management Team (AMT) over the past several years, starting with the Baseline Assessment and Improvement Program and Asset Management Standards Manual (AMSM) developed in It also builds on more recent efforts over the past 18 months with Strategic Asset Management Plan (SAMP) development efforts in DEN has a long-term view towards aligning with industry standards and potential certification including ISO The plan incorporates ongoing AMT initiatives and is organized around seven core pathways that will deliver discrete benefits and outcomes. The combined initiatives and pathways form a cohesive program that will create organizational

6 SECTION 1 02 alignment and incorporate business planning needs including required resources and investments. In addition to an overall schedule, this plan also incorporates recommendations for: resource requirements, progress tracking, performance monitoring, and benefits analysis. The information contained within this document is based on iterative reviews and work sessions with DEN leadership throughout 2017 and 2018, and is in alignment with US and global practice. The work plan was developed with several overarching themes in mind: Propose a realistic set of initiatives that can be reasonably implemented within a two-year timeframe. Consider existing DEN resources and bandwidth as well as time required for recruiting any additional staff. Focus on initiatives that build on existing efforts, align with strategic goals, and support steady and incremental progress. Retain flexibility to apply lessons learned, adapt the plan over time, and proactively respond to business and technology changes as appropriate. Offer impactful pathways and initiatives that deliver process efficiencies, enhanced decision making, increased reliability, reduced risk, improved customer service, and support long-term financial planning. Align with and support ongoing DEN growth and expansion as well as strategic customer service, sustainability, and technology initiatives. Focus on defined outcomes with ownership, milestones, and measurable benefits.

7 SECTION 2 03 There are several foundational elements that are critical to DEN s approach to asset management. These key themes will be integrated throughout the implementation plan and address the following elements. 2Asset Management Foundation Embedding a life-cycle approach to inform decisions that optimize total cost of ownership. Ensuring strategic plan alignment to communicate the benefits of asset management to stakeholders. Following and adopting industry asset management standards to support training and future certification efforts. Applying risk management tools and techniques to ensure that enterprise risks are proactively monitored and addressed and that investments are targeted towards the most critical infrastructure.

8 SECTION 2 04 A Life-Cycle Approach Asset Management incorporates the optimized life-cycle management of physical assets (fleet, facilities, and infrastructure). Asset Management supports robust decision analysis being able to make the right decisions, at the right time, based on solid data and focus investments where they are most needed and have the strongest outcomes. The life-cycle approach to asset management is illustrated in Figure 1 and covers all phases including: Planning and Design Capital project business case development, triple bottom line (social, financial, environmental) analysis, and project prioritization and planning. Procure and Construct Asset data standards and submittals (including building information management [BIM]), asset commissioning and acceptance process, and warranty tracking. Operate and Maintain Preventive maintenance work plans and schedules and comprehensive asset-class, lifecycle maintenance and monitoring plans. Renew and Replace Risk assessment, life-cycle cost and financial analysis, renewal and replacement planning, and funding analysis. Figure 1 Asset Management applied to Asset Life-Cycle Evaluate business cases Optimize capital program Preliminary design Design & procure Manage capital portfolio Establish goals & master plan Monitor demand, capacity & service Renew, replace or retire Asset Lifecycle Management White arrows represent areas where Asset Management tools and techniques can be most readily applied. Construct & commission Maintenance strategy Operate, monitor & inspect Model risk renewal Evaluate intervention Analyze Performance Maintain, respond & repair Manage work orders & reporting

9 SECTION 2 05 Total cost of ownership defines the cradle-to-grave responsibility for measuring and managing costs involved. Another way to describe the life-cycle management approach is in terms of total cost of ownership. The basis for this approach is an understanding of all costs associated with an asset from initial planning and design, through construction and ending with asset disposal it is supported by appropriate analysis including asset condition and performance against service level requirements. Total cost of ownership defines the cradle-tograve responsibility for measuring and managing costs involved. Airport Infrastructure Management (AIM) is committed to applying this approach to inform decision making at key decision points by focusing on lowest overall cost and balancing costs, risks, and performance. These concepts will be applied at a macro-level across the entire portfolio as well as applied to specific asset and asset class planning activities. Several of the core initiative pathways (described in more detail in Section 3) directly support the goals of life-cycle management and the total cost of ownership approach. For example, Pathway 4: Enhanced Asset Management Planning, Reporting, and Analysis aims to enhance long-term operations and maintenance (O&M), renewal, capital budgeting, and financial forecast by developing detailed asset-class lifecycle plans and renewal and replacement forecasts. Some of the candidate improvement initiatives that will support this pathway are as follows: Develop Executive Level Quarterly or Annual Asset -Management Reporting Develop Asset Class Life-Cycle Plan Approach, Template, and Pilot Develop Enhanced Renewal and Replacement Forecasts Additional implementation initiatives that fall under Pathway 3: Enhanced Facility Maintenance and Work Order Management Strategies will also serve as instrumental to DEN s efforts to efficiently gather data on asset-level maintenance costs, asset failures, and other facility maintenance activities that together guide asset life-cycle decisions.

10 SECTION 2 06 Linking Asset Management to DEN s Strategic Plan The goals of DEN s Asset Management program are directly aligned to each of the elements of the airports Strategic Plan, as shown in Table 1. For example, DEN s Strategic Goal #3, Partnering for Operational Excellence, will be furthered by the asset management program s emphasis on implementing efficient and repeatable practices. Likewise, the complete life-cycle approach to asset management contributes directly to the airport s goals of excelling in financial performance. As improvement initiative work plans are developed, the AIM team will place specific emphasis in tying benefits and outcomes to specific elements of the strategic plan to help communicate the benefits to stakeholders. Table 1 DEN Strategic Plan Goals and Alignment with Asset Management STRATEGIC PLAN ELEMENT Winning the hearts of customers Inspiring our employees Partnering for operational excellence Investing for sustainability Putting DEN on the world map Building airport city Excelling in financial performance AM LINKAGE Ensuring well maintained infrastructure that meets customer expectations for reliability and service (for all customer segments) and delivers timely response and restoration of issues Providing challenging opportunities, fostering collaboration, and supporting leading edge training, tools, and work practices Implementing efficient and repeatable practices and processes and coordinating with other DEN departments in real-time Linking maintenance and capital decisions to social, financial, and environmental outcomes Becoming nationally and globally recognized for our asset management program Efficiently adopting new and enhanced facilities into the asset management program Delivering optimized life-cycle costs, and incorporating transparent analysis and decision-making tools

11 SECTION 2 07 Maintaining frequent connection to asset management industry associations and networking groups will help ensure that DEN stays current with evolving asset management practices and publication updates. Asset Management Standards DEN has long recognized the benefits of improved asset management practices, and formalized the program several years ago under the leadership of AIM. Throughout its development, DEN has committed to applying industry accepted principles and aligning with industry standards and bodies of knowledge as much as possible including: The global ISO standard for asset management to which the gap analysis and maturity assessment was aligned The ACRP Guide for Airport Asset Management that reflects specific needs and challenges applied to aviation Various ASTM standards as appropriately applied to tactical level elements such as facility condition assessment and asset naming conventions Technology standards and data frameworks including those applied to BIM and enterprise asset management (EAM) applications Maintaining frequent connection to asset management industry associations and networking groups will help ensure that DEN stays current with evolving asset management practices and publication updates. It will also provide a steady flow of information to ensure that asset management staff continue to adopt industry accepted practice in an efficient manner. Applying standards will also help the organization align with any future plans to gain formal ISO or other applicable certifications. Risk Management A critical component of any asset management program is how an organization manages risk as applied both to its assets and to the overall organization. The improvement initiatives described in Section 3 both directly and indirectly support DEN s efforts to formalize a robust risk management program. These include initiatives that will establish a clear condition, criticality and risk framework for individual assets, such as those found in Pathway 2: Enhanced Asset Condition, Criticality, and Risk Framework.

12 SECTION 2 08 Enterprise-level risk management objectives are addressed through implementation initiatives such as those found in Pathway 1: Establish Strategic Asset Management Roles and Responsibilities, and Enhance Organizational Alignment. A risk-based and data-driven program is incorporated throughout DEN s program including: Asset risks Can be identified through asset condition and criticality assessment and addressed through the appropriate intervention strategy as shown in Figure 2. Enterprise risks Include more systematic corporate, financial, and organizational risks that can be addressed directly through the asset management program. These can be identified through future assessment efforts, and should be monitored and mitigated through risk registers that include a risk description, summary of expected impacts, and planned strategies to address each risk on an ongoing basis. Figure 2 Failure Modes Analysis A Risk-Based Approach to Decision Making Effects Analysis Maintenance Planning Service Level Impacts / Critical Failures CONDITION (POF) Failure Modes Mortality Level of Service Capacity Efficiency Resiliency X CRITICALITY (COF) X REDUNDANCY FACTOR = Triple Bottom Line Economic Social Environmental PROBABILITY Increasing Risk CONSEQUENCE RISK SCORE Intervention Strategies RENEW REPLACE O&M REDESIGN/ENHANCE Drive Proactive maintenance and risk strategy OUTCOMES Extend asset life and deliver level of service Maximize reliability focused on critical assets The improvement initiatives described in Section 3 both directly and indirectly support DEN s efforts to formalize a robust risk management program. These include initiatives that will establish a clear condition, criticality and risk framework for individual assets, such as those found in Pathway 2: Enhanced Asset Condition, Criticality, and Risk Framework. Enterprise-level risk management objectives are addressed through implementation initiatives such as those found in Pathway 1: Establish Strategic Asset Management Roles and Responsibilities, and Enhance Organizational Alignment.

13 SECTION Improvement Initiatives and Overall Pathway Structure Implementation Pathways WSP identified over 50 candidate improvement initiatives and worked with DEN to prioritize 20 of the highest priority initiatives across seven pathways to serve as a core focus of the asset management program over the next two years ( ). Detailed implementation work plans were developed for five of these initiatives, representing the highest near-term priority for DEN. These are included in Appendix A and can be used as a template for additional initiatives as the program progresses. In addition, the work plan includes 15 medium-high priority initiatives that are likely to serve as the second wave of the program looking forward through an approximate five-year period ( ). The complete list of initiatives is provided separately to DEN in electronic format for future updates and refinements. An excerpt of this list is shown at the end of this section as Table 2. Many of the pathways and initiatives below will support improved infrastructure reliability and performance as well as build a more proactive, consistent and integrated approach to risk assessment, life-cycle analysis, data management, and maintenance practices airport-wide. In the long-term, they will also support improved technology platforms, data, and decision making and provide justification for future capital needs. Finally, the proposed initiatives support knowledge management and standardized practices by capturing and formalizing operating procedures and establishing additional rigor around critical work processes. The initiatives cover seven major pathways along with select foundational activities already underway: Establish Strategic Asset Management Roles and Responsibilities, and Enhance Organizational Alignment Enhanced Asset Condition, Criticality, and Risk Framework Enhanced Facility Maintenance and Work Order Management Strategies Enhanced Asset Management Planning, Reporting, and Analysis Enhanced Asset Commissioning Process and Revised SOPs Enhanced EAM Technology Framework Formalized Supply Chain and Materials Management Framework

14 SECTION 3 10 Pathway 1 Establish Strategic Asset Management Roles and Responsibilities, and Enhance Organizational Alignment Target Outcomes Enhanced collaboration between AMT and the maintenance organization with more formal asset class strategies and alignment of long-term maintenance and capital planning strategies. Enhanced staff training, knowledge, and widespread support. Scope of Efforts Continue to formalize the organizational structure by adding critical roles and responsibilities and aligning to foster asset ownership from the maintenance organization. Enhance collaboration and coordination between AMT and maintenance supervisors and crews. Establish more formal working groups and relationships with AMT and DEN IT. Provide formal staff training on asset management to enhance understanding, skills, and support. Individual Pathway Initiatives Implement Asset Owner and Engineering and Planning Asset Coordinator Models Develop Introductory Asset Management Training for New Hires Establish Framework and Initiate Formal DEN IT / AIM Working Group

15 SECTION 3 11 Pathway 2 Target Outcomes Enhanced risk-based view of long-term asset needs beyond state of good repair, enabling more comprehensive input into and alignment with the capital plan. Consistent scoring and ranking to allow comparison across all asset classes and support for maintenance prioritization. Scope of Efforts Complete documentation and align airport-wide condition assessment standards Enhanced Asset Condition, Criticality, and Risk Framework to ensure rollups can be performed across all asset classes and information can be consistently managed in Maximo as part of a risk-based analysis process. Develop formal asset performance condition assessment criteria at the system or subsystem level of the hierarchy to incorporate assessments for non-mortality failure modes and develop formal criticality / consequence of failure criteria to allow calculation of final risk scores. Individual Pathway Initiatives Develop Standardized Physical Condition Assessment Protocols, Guidelines and Scoring Across Asset Classes Develop System / Asset Performance Condition Assessment Criteria and Scoring Develop System / Asset Criticality (Consequence of Failure) Criteria and Scoring

16 SECTION 3 12 Pathway 3 Target Outcomes Improved maintenance performance and compliance, enhanced efficiency and quality, and greater assurance that assets are maintained and delivered in acceptable condition. Enhanced performance information and data with robust multi-level dashboards. Greater support for decision making and ability to demonstrate progress and benefits. Improved staff training, skillsets, and job satisfaction. Scope of Efforts Enhanced Facility Maintenance and Work Order Management Strategies Documentation to align contract maintenance agreements with asset management standards. Continued Maximo configuration enhancements and standardization. Plans for increased Maximo staffing and training. Continued implementation of KPI tracking and reporting and dashboard. Rollout of improved linear asset functionality and enhanced GIS integration. Development of formal standard operating procedures (SOPs) for routine maintenance activities consistent work order processes and Q/A. Enhanced use of asset performance data for risk and capital planning. Individual Pathway Initiatives Facility Maintenance Foundational Strategies Align Future Contract Maintenance Agreements with Asset Management Standards Develop Formal Maintenance SOP Template and Implement Through a Pilot Core Work Order Management Process and Staffing Enhancements Finalize Work Order quality assurance (Q/A) Process, Roles, Responsibilities, Staffing Plan Conduct Planner / Scheduler Staffing Evaluation and Develop Business Case Hire Additional Internal Maximo Training Staff and Develop Enhanced Training Plan Supporting Work Order Management Technology Configuration Develop Enterprise Asset Hierarchies in Maximo and Clarify Asset vs Location Protocol Develop and Implement Enterprise Definitions for Work Order Priority and Complete Failure Code Development and Configuration Maximo Scheduling and Planning Enhancement (Assignment of Batch Work Orders) Develop Rollout Plan for Linear / Spatial Asset Management Tools and Integration Work Order Management Metrics and Reporting Continued Improvement and Enhancements to KPI Tracking and Dashboard Implement Metrics and a Process to Monitor and Respond to Worst Performing Assets

17 SECTION 3 13 Pathway 4 Target Outcomes Enhanced long-term O&M, renewal, and capital budgeting and financial forecasting. Greater adherence to inspection and project management (PM) programs with improved tracking, reporting, and accountability. Promotion of greater visibility and transparency for asset management program and stronger mechanisms to communicate progress and benefits to stakeholders. Scope of Efforts Enhanced Asset Management Planning, Reporting, and Analysis Produce a uniform template and pilot the development of formal asset-class level life-cycle plans that address: inspection and maintenance strategies, reliability targets, performance metrics, and long-term renewal and replacement forecasts. Develop a uniform template and produce a high-level quarterly or annual asset management report with executive-level metrics and reporting on key benefits/ outcomes/impacts along with a summary of key initiatives and status. Develop highlevel renewal forecasts for all major asset classes based on asset inventory, useful life, and replacement costs to get a better understanding of baseline sustainable levels of expenditure (within orders of magnitude) to keep all assets in a state of good repair. Individual Pathway Initiatives Develop Executive Level Quarterly or Annual Asset Management Reporting Develop Asset Class Life-Cycle-Plan Approach, Template, and Pilot Develop Enhanced Renewal and Replacement Forecasts

18 SECTION 3 14 Pathway 5 Target Outcomes Enhanced asset inventory, attribute, and installed cost data provided in desired state by contractor for all new projects. Enhanced long-term forecasting of renewal and replacement needs and ability to calculate current asset value. Reduction in AIM workload to support asset commissioning through improved consistency in contractor / engineer submittals. Scope of Efforts Enhanced Asset Commissioning Process and Revised SOPs Develop more formal requirements for asset level installation / replacement costs as part of design and construction submittals. Create enhanced data templates and submittal processes to support easier entry of data into Maximo. Enhance standardization and formal documentation of SOPs for asset commissioning process. Individual Pathway Initiatives Develop SOPs for Enhanced Asset Commissioning Process Including: Asset Definition, Hierarchy, and Schedule of Values / Asset Install Cost Define Requirements for Asset Valuation / Schedule of Values

19 SECTION 3 15 Pathway 6 Enhanced EAM Technology Framework Target Outcomes Improved data and information and more effective technology adoption resulting in efficient and consistent business process. Greater crew efficiency and work order compliance and enhanced staff training, skillsets, and satisfaction. Reduced inspection and maintenance cost and reduced failure / breakdown rate through enhanced practices and data analysis. Ability to better employ more advanced reliability centered maintenance (RCM) practices and more insightful planning analysis including enhanced tracking of asset portfolio value and improved capital plan forecasts for renewal. Improved record storage, management, and enterprise accessibility. Scope of Efforts Create enhancements to new mobile work order system to encourage compliance and create positive energy and momentum. Develop pilots and involve supervisors and front-line technicians into the technology rollout process. Perform a comprehensive assessment and develop a focused plan and strategy for enhanced implementation of SCADA technology for key equipment (elevators, escalators, boilers, chillers) and integrate into the overall asset management and maintenance strategy. Perform assessment and develop plan to improve alignment and integration between the financial asset register and Maximo for tracking of assets (including depreciated asset value and replacement value). Assess, implement, and integrate enhanced document management tools and align with improved capital project document management business process and SOPs. Individual Pathway Initiatives Continue to Enhance and Roll Out New Mobile Work Order System Develop Framework for Finance / Maximo Alignment or Integration (Valuation and Depreciation) Develop Formal Document Management System, Process, and Integration Requirements Develop Enhanced SCADA Implementation Plan for Key Assets

20 SECTION 3 16 Pathway 7 Target Outcomes Enhanced facility maintenance efficiencies through improved supply chain practices including: inventory tracking, inventory management, parts availability, parts management, and work-order-completion time. Improvements to core supply chain management such as tracking and availability of critical spares and order fill rate. Better information and actionable metrics to support long-term materials planning and increase overall performance visibility specific to facilities. Support overall transition to more formal material management locations and practices. Formalized Supply Chain and Materials Management Framework Scope of Efforts Develop To-Be workflows and implement more formal procurement, stores / warehousing, spares, and materials management processes. Evaluate enhancements to existing Maximo inventory management capabilities or consider integrating with another product. Continue the establishment of formal, smaller local (satellite) storerooms and mobile delivery including selected existing locations. Establish inventory levels based on analytics (i.e. Economic Order Quantity [EOQs]), as opposed to mins/maxes, with consideration of critical/safety stock. Implement standard inventory reports specific to facilities (i.e. separate from fleet) to allow for drill down to the asset class /group level. Develop requirements, perform a technology assessment and implementation, and deploy bar-coding and/or radio-frequency identification (RFID) technology to fleet and materials management warehouses. Configure functionality to include lists of material quantity and implement as part of a larger overall enhanced work order and material management process. Engage the City and County of Denver (CCD) General Services Purchasing (GSP) to jointly evaluate the current process of using a CCD procurement function to manage requisitions for frequently used specialty items. Individual Pathway Initiatives Develop Business Plan for Enhanced Supply Chain, Inventory Management, and Dedicated AIM Storeroom Formalize Strategy and Implement Enhanced Satellite Storerooms Establish Enhanced Inventory Levels Based on Analytics Develop Strategy and Implement Material Quantity on Work Orders Produce and Evaluate Standard Inventory Reports Develop Requirements, Perform Assessment, and Implement Bar-Coding / RFID CCD GSP Procurement Process Review for Specialty Items

21 SECTION 3 17 Program Foundational Activities These are existing efforts already in the implementation process by DEN and are represented in Appendix A under the MAX (Maximo Tune-up) and MDI (Mission Dependency Index) initiatives. Initiative Group A Initiatives Driven by Other Departments with Input from AMT SUMMARY: Some key DEN asset management initiatives will be owned by others outside of AIM and the AMT. Implementation of these efforts will require alignment with asset management principles and various levels of input and participation from the AMT. For these efforts, AMT will collaborate with Finance, Engineering and Planning, Operations, and other departments to ensure a common approach and collaborative business processes and handoffs. Currently, these initiatives are focused around Capital Planning and Capital Project Management. Initiative Group B Future Long-Term Initiatives Potentially Planned for SUMMARY: This initial work plan is focused more heavily on the near-term, highpriority and medium-high-priority initiatives and pathways for DEN. Through this process, WSP and DEN have also identified initiatives that will be important in future implementation phases, but are currently medium or low priority given the available bandwidth and resources. In addition, many of these initiatives will require foundational progress to be effective. These will currently sit in a parking lot and can be considered for future years as the program progresses and/or can be reviewed and re-prioritized on a regular basis as the implementation plan is updated over time. Currently, these initiatives are focused on advanced information systems and software configuration and implementation and more advanced data analysis and modeling tools.

22 SECTION 3 18 SAMP Improvement Initiative Work Plans For the five highest-priority initiatives expected to be addressed over the next 12 to 18 months, a more detailed initiative work plan is provided, outlining the proposed resources, budget, activities, and milestones required for a successful implementation. To develop these work plans, WSP worked with DEN to discuss initiative needs and initial implementation approaches. DEN can continue to refine these work plans and appoint internal sponsors, leaders, champions, and tactical teams to finalize the plans and progress with implementation. Figure 3 Improvement Initiative Template The detailed initiative work plans are included in Appendix A and are also represented in the project schedule presented in Section 4 of this report. The scope of the project work plans include: Initiative name, description, and reference number. Providing overview and summary information Team. Including sponsors, champion, and key team members Priority and cost. Including internal and external costs to support program budgeting and estimating Current state and future state. That summarize and define drivers and outcomes Required change and key enablers. To identify potential change management and key implementation success factors Solutions planning activities. Providing a more comprehensive list of subtasks, activities, and milestones required for implementation. These will also be reflected in the project schedule. A sample template is shown in Figure 3, with the details provided in Appendix A. DEN may wish to use this approach for future initiatives that are planned for subsequent implementation periods, and may also wish to update the documents on a regular basis as progress is achieved. An excerpt of the complete list of improvement initiatives is shown on Table 2 on the following page.

23 SECTION 3 19 Table 2 Sample Improvement Initiative Matrix Initiative Description/Scope Expected Impacts/ Benefits Potential Metrics / Milestones DEN Priority (H/MH/M/L) Links to (Assessment Areas/Pathways) DEN Expected Implementation Effort DEN Expected Timeframe Notes/Comments Improvement Initiative name, categorized according to one of the eight functional areas of the airport. Description and scope of initiative Brief listing of the expected impacts / benefits of the initiative Key initiative metrics or milestones Color-coded priority ranking Color-coded expected implementation effort ranking Expected implementation timeframe Additional notes and comments STRATEGIC PLANNING Asset Life-Cycle Plans Produce a uniform template and pilot the development of formal asset-class level life-cycle plans that address: inspection and maintenance strategies, reliability targets, performance metrics, and long-term renewal and replacement forecasts. Enhanced long-term O&M and capital budget and financial forecasts Greater adherence to inspection and PM programs Improved tracking, reporting, and accountability Asset class PM schedule compliance Asset class reliability (i.e. failure rates and MBTF) Completion of "x" plans per year (against target) 5. High B. Control of Assets C. Asset Management Planning E. Maintenance Planning and Delivery 3. High 24+ months Start with 2 to 3 pilot areas (potentially HVAC and electrical) and then develop long-term plan to address all major asset classes over time. Can also include metric for asset class renewal and replacement rate. DESIGN, CAPITAL PLANNING, AND CONSTRUCTION Define Requirements for Asset Valuation as Part of Schedule of Values Submittal during Asset Commissioning Process Develop more formal requirements for asset level installation/ replacement costs as part of design and construction submittals so that information can be entered into Maximo when assets are commissioned and can support future renewal and replacement forecasts. Asset level installed cost provided by contractor for all new projects Enhanced long term forecasting of renewal and replacement needs Enhanced ability to calculate current asset value Percent of assets with installed/ replacement cost Projected annual renewal expenditure vs actual (future) 4. Med High C. Asset Management Planning D. Capital Planning and Delivery G. Informed Decisions (And Supporting IT) 1. Low 3-6 months May also need some Maximo configuration and reporting enhancements to support calculation of current replacement cost adjusting for historic installation cost to current dollars. Important to get in place as CIP ramps up. FACILITY MAINTENANCE See Appendix B for 55 current DEN initiatives Continue to Roll Out and Enhance New Mobile Work Order System Create enhancements to new mobile work order system to encourage compliance and create positive energy and momentum. Develop pilots and involve supervisors and front-line technicians into the technology rollout process at an earlier stage including participation in implementation team. Greater crew efficiency and work order compliance Improved data and information and more effective technology adoption Enhanced staff training, skillsets, and satisfaction Work order compliance rate Crew Productivity Employee satisfaction 4. Med-High E. Maintenance Planning and Delivery G. Informed Decisions (And Supporting IT) H. Resource Capabilities 3. High months Enhanced focus and resources dedicated to existing efforts. Create comprehensive implementation plan for piloting and full rollout. A more focused and successful rollout will help to regain crews confidence from the previous Toughbook rollout, which was not well-received. Need to ensure appropriate tablet technology, UI, and connectability (i.e. ability to work in offline mode). Incorporates key maintenance field staff participation to ensure usability and improved organizational acceptance / adoption. Linked to initiative 39.

24 SECTION Proposed Schedule Below is a proposed implementation schedule and timeline, showing the implementation across the seven pathways as discussed earlier. The initiatives are staggered based on relative priority, considering potential workload and resource availability as well as relationships and dependencies between tasks. The intent is that this two-year timeline will build an initial foundation and that DEN will revisit and refresh the program at that point, codifying accomplishments and lessons learned. The electronic version of this schedule in Microsoft Project was also provided to DEN in electronic format for future updates and refinements. The schedule below is current as of April 2018 and assumed initiation in January Looking past the two-year horizon, lower priority initiatives are also scheduled for future years and can be more formally added to the program in the future (under appropriate pathways) as desired. Figure 4 Proposed Implementation Schedule Strategic Asset Management Roles, Responsibilities, and Organizational Alignment 2 Enhanced Asset Condition, Criticality, and Risk Framework 3 4 Enhanced Facility Maintenance and Work Order Management Strategies Enhanced Asset Management Planning, Reporting, and Analysis 5 Enhanced Asset Commissioning Process and Revised SOPs 6 Enhanced EAM Technology Framework 7 Formalized Supply Chain and Materials Management Framework

25 SECTION Measuring Outcomes It will be critical for the AMT to track ongoing performance improvement through a streamlined set of metrics that are specifically aligned with each of the seven pathways. It is also recommended that DEN establish baseline performance (even if done as an initial estimate or range) to track outcomes from early stages of the program. A summary of proposed metrics is provided n the following pages, which can be rolled out over time in alignment with an overall performance management framework and dashboards. This will provide a mechanism for DEN to: measure progress, quantify outcomes, and promote benefits across the organization. Development of simple and insightful graphs and analysis can communicate performance, highlight areas of opportunity, and demonstrate trends. An illustrative example is provided in Figure 5. Figure 5 100% Sample Preventive Maintenance Schedule Compliance: HVAC 6-month rolling average 90% ANNUAL TARGET 80% 70% 60% J F M A M J J A S O N D % MAINTENANCE WORK ORDERS COMPLETED ON OR BEFORE TARGET DATE Measure Type KPIs are internal business and operational performance measures. They measure work management in terms of volume, productivity, cost, and financial performance for established programs. PM Schedule Compliance Definition (HVAC Asset Class) Percent of total maintenance work orders closed during the month completed on or before their schedule date. Typical maintenance measure to track total percent of scheduled preventive maintenance work orders closed during the month that were completed on or before their originally scheduled date. 90%+ is established target. This measure is tracked monthly by asset class and work center to ensure maintenance staff are keeping up with prescribed preventive maintenance, proactively maintaining state of good repair, and minimizing corrective maintenance and failures that to service issues.

26 SECTION 5 22 Pathway 1 Metric 1-1 Asset Class PM Schedule Compliance DESCRIPTION: Percent of Total Maintenance Work Orders Closed During the Month that Were Completed on or Before Their Schedule Date. Typical maintenance measure to track total percent of scheduled work orders closed during the month that were completed on or before their originally scheduled date. 90%+ is desirable. Can be tracked for individual facilities, by crew/staff, region, or for specific asset/ process/work categories (i.e. mechanical, electrical, HVAC, etc.). OWNER: TBD (Planner / Scheduler and/or Maintenance Manager/Supervisor) Establish Strategic Asset Management Roles and Responsibilities, and Enhance Organizational Alignment FORMAT / REPORTING FREQUENCY: Monthly with bar chart for 12-month calendar year and rolling 12-month average shown in the background to demonstrate trends and smooth any expected seasonal fluctuations. KEY SYSTEMS / DATA SOURCE: Maximo data TBD Metric 1-2 Asset Class Reliability (i.e. failure rates and MTBF) DESCRIPTION: Failure Frequency (per unit as appropriate for asset class) or Mean Time Between Failure (typically per hour of runtime or distance as appropriate for asset class). Typical maintenance measure to track asset and/or component reliability as a mechanism to track maintenance program effectiveness and assist in life-cycle maintenance and replacement strategies. Can be tracked and applied to individual assets and overall asset classes. OWNER: TBD (Maintenance Manager/Supervisor and/or Asset Class Owner) FORMAT / REPORTING FREQUENCY: Quarterly with bar chart for 12-month (four period) calendar year and rolling 2 to 3-year average shown in the background to demonstrate trends and smooth any fluctuations. KEY SYSTEMS / DATA SOURCE: Maximo data TBD

27 SECTION 5 23 Pathway 2 Metric 2-1 Complete Condition Assessment of x Percent of Assets / Asset Classes DESCRIPTION: Percent of assets overall and within specific target asset classes that have had a comprehensive visual, testing, monitoring or other formal condition assessment with a quantitative score applied (typically 1-5 score aligned with DEN condition assessment standards). OWNER: TBD (Asset Class Owner) FORMAT / REPORTING FREQUENCY: Annual bar chart showing progress Enhanced Asset Condition, Criticality, and Risk Framework against target. KEY SYSTEMS / DATA SOURCE: Maximo data TBD Metric 2-2 Average Condition Index (by Asset Class) DESCRIPTION: Average condition score (typically 1-5 score aligned with DEN condition assessment standards) within specific target asset classes to track overall condition trends over time and against established targets. The score serves as an indicator of sustainable levels of maintenance and capital program performance and investment levels as well as overall state of good repair status. Common measure to track progress of formal asset maintenance and replacement programs. OWNER: TBD (Asset Class Owner) FORMAT / REPORTING FREQUENCY: Annual bar chart showing progress against target. KEY SYSTEMS / DATA SOURCE: Maximo data TBD Metric 2-3 Percent of Assets with Unacceptable Condition Scores DESCRIPTION: Percent of assets with unacceptable condition scores (typically poor or fail aligned with DEN condition assessment standards) within specific target asset classes to track number of assets that are below the target threshold for replacement/renewal as a measure of overall state of good repair. Companion measure to Metric 2.2 above. OWNER: TBD (Asset Class Owner) FORMAT / REPORTING FREQUENCY: Annual bar chart showing progress against target. KEY SYSTEMS / DATA SOURCE: Maximo data TBD

28 SECTION 5 24 Pathway 3 Metric 3-1 Work Order Compliance Rate DESCRIPTION: Percent of work orders that are completed within an established timeframe (i.e. days from assignment or trigger date) as part of overall maintenance program. Common measure to assess whether work orders of various type are completed in a timely manner. OWNER: TBD (Maintenance Manager/Supervisor) FORMAT / REPORTING FREQUENCY: Monthly with bar chart for 12-month calendar year and rolling 12-month average. Enhanced Facility Maintenance and Work Order Management Strategies KEY SYSTEMS / DATA SOURCE: Maximo data TBD Metric 3-2 Open Work Order Aging Status DESCRIPTION: Percent and/or number of open maintenance work orders that are within various time bands representing currently assigned backlog (i.e days, days, days, etc.). Common measure to assess whether work orders of various type are being completed in a timely manner and to monitor worst components of assigned backlog. OWNER: TBD (Maintenance Manager/Supervisor) FORMAT / REPORTING FREQUENCY: Monthly with stacked bar chart for 12-month calendar year showing number and/or percent within each aging band. KEY SYSTEMS / DATA SOURCE: Maximo data TBD Metric 3-3 Crew Productivity DESCRIPTION: Productivity rate measured as a percent of target, as measured against established estimated vs. actual work hours. Summary or average of all work orders completed in a period and typically tracked at the work center (i.e. geographic assignment or technical specialty) and/or crew level. OWNER: TBD (Maintenance Manager/Supervisor) FORMAT / REPORTING FREQUENCY: Monthly with bar chart for 12-month calendar year and rolling 12-month average. KEY SYSTEMS / DATA SOURCE: Maximo data TBD

29 SECTION 5 25 Pathway 4 Metric 4-1 Number of Major Asset Classes with Renewal and Replacement (State of Good Repair) Forecasts DESCRIPTION: Percent of assets overall and within specific target asset classes and/ or systems that have long-term renewal and replacement and funding forecasts developed. Common measure to track progress of asset management analysis and asset life-cycle plan development. OWNER: TBD (Asset Management Team and/or Asset Owner) FORMAT / REPORTING FREQUENCY: Annual chart or narrative showing progress Enhanced Asset Management Planning, Reporting, and Analysis against target. KEY SYSTEMS / DATA SOURCE: N/A Metric 4-2 Completion of "x" Plans per Year (Against Target) DESCRIPTION: Number of asset class life-cycle plans completed per year against established program target. Common measure to track progress of asset management analysis and asset life-cycle plan development. OWNER: TBD (Asset Management Team and/or Asset Owner) FORMAT / REPORTING FREQUENCY: Annual chart or narrative showing progress against target. KEY SYSTEMS / DATA SOURCE: N/A

30 SECTION 5 26 Pathway 5 Metric 5-1 Percent of Assets with Installed/Replacement Cost DESCRIPTION: Percent of assets overall and within specific target asset classes and/ or systems that have installed cost fields or replacement cost fields completed. Common measure to track progress of asset management data capture. OWNER: (Asset Management Team and/or Asset Owner) FORMAT / REPORTING FREQUENCY: Annual chart or narrative showing progress against target. Enhanced Asset Commissioning Process and Revised SOPs KEY SYSTEMS / DATA SOURCE: N/A Metric 5-2 Projected Annual Renewal Expenditure vs. Actual (Future) Related to Metric 4.1 DESCRIPTION: Calculation of total annual renewal and replacement forecast to maintain state of good repair vs actual programmed and/or spent funding. High level measure to assess whether the organization is proactively funding asset renewal to ensure state of good repair and target condition index. OWNER: TBD (AMT) FORMAT / REPORTING FREQUENCY: Annual chart showing progress against target. KEY SYSTEMS / DATA SOURCE: Maximo and other

31 SECTION 5 27 Pathway 6 Metric 6-1 Percent of O&M SOPs Available in System DESCRIPTION: Percent of assets that have formal maintenance plans, schedules and SOPs available in system with defined work steps, activities, tasks, and materials. Measure to track progress in establishing maintenance programs for all assets in the system over time. OWNER: (AMT and/or Asset Owner) FORMAT / REPORTING FREQUENCY: Annual chart or narrative showing progress against target. Enhanced EAM Technology Framework KEY SYSTEMS / DATA SOURCE: Maximo Metric 6-2 Current Asset Replacement Value (Related to Metric 5.1) DESCRIPTION: Annual calculation to determine current replacement value of all airport assets. Can also be presented for specific systems and/or locations. Common financial tracking and reporting metric. OWNER: TBD (AMT and/or Asset Owner) FORMAT / REPORTING FREQUENCY: Annual chart or table with narrative. KEY SYSTEMS / DATA SOURCE: Maximo

32 SECTION 5 28 Pathway 7 Metric 7-1 Materials Order Fill Rate Preventive Maintenance (PM) and Corrective Maintenance (CM) work orders) DESCRIPTION: Percent of time that orders for material(s) were filled completely when requested. Measure to indicate when materials in order are available/in stock and delivered by requested/planned date in work order. Can track by critical and non-critical if noted in inventory/procurement system. Low fill rates can impact maintenance crew productivity and project schedules. OWNER: TBD (Work Planning/Scheduling Team and Materials Management) Formalized Supply Chain and Materials Management Framework FORMAT / REPORTING FREQUENCY: Monthly with bar chart for 12-month calendar year and rolling 12-month average. KEY SYSTEMS / DATA SOURCE: Maximo stores/inventory module Metric 7-2 Work Order Completion Time (Time Waiting for Parts) Related to Metric 7.1 DESCRIPTION: For work orders where materials aren t filled by scheduled date, calculation of the average wait time in days. This measure reflects the average time waiting for work order materials to be filled. OWNER: TBD (Work Planning/Scheduling Team and Materials Management) FORMAT / REPORTING FREQUENCY: Monthly with bar chart for 12-month calendar year and rolling 12-month average. KEY SYSTEMS / DATA SOURCE: Maximo stores/inventory module Metric 7-3 Average Time (Days) for Material Ordering (Request to Delivery) for Specialty Items (Time Waiting for Parts) Related to Metric 7.1 DESCRIPTION: For work orders that require non-stock parts and materials, calculation of the average wait time in days. This measure reflects the average time waiting for on-stock work order materials to be filled. OWNER: (Work Planning/Scheduling Team and Materials Management) FORMAT / REPORTING FREQUENCY: Monthly with bar chart for 12-month calendar year and rolling 12-month average. KEY SYSTEMS / DATA SOURCE: Maximo stores/inventory module

33 SECTION Implementation Considerations As DEN accelerates progress and moves forward with implementation, below are several areas for the organization to consider in terms of: Ownership and implementation team formation to develop a core team of champions to generate excitement and move initiatives forward. Overarching workforce considerations to assess resource needs and constraints and ensure that the implementation plan is realistic and achievable. Need for performance tracking and communication to ensure staff are kept actively informed and able to build a strong storyline and business case demonstrating positive benefits and outcomes. Applying these techniques will help ensure that DEN achieves clear benefits from the program, creates momentum and champions, and can communicate openly with stakeholders and successfully continue its asset management journey over the long-term.

34 SECTION 6 30 Initiative Ownership and Management An important consideration when developing initiative work plans is to appoint a clear owner who is responsible for leading a small implementation team, tracking progress, and ensuring milestones are achieved. Considering the size and scale of DEN s current AMT organization, it is also likely that these individuals will lead much of the implementation work, with support from focused implementation teams with cross-functional participation as appropriate. The AMT should maintain responsibility for tracking and assisting in the delivery of the complete program portfolio including all the initiatives, and should report overall progress to a defined steering team who can help with support and resource allocation. As DEN develops the asset management program, key roles and responsibilities will be required for each major initiative including: Initiative Sponsor. The senior level management or executive team lead that is responsible for providing guidance and support and for assessing and approving required funding. The sponsor is also responsible for providing appropriate executive level guidance and feedback and for helping to address any organizational roadblocks. Initiative Champion. The key owner and primary implementation leader who is responsible for overall initiative development, oversight, management, and delivery. Process Owner. The individual within DEN who has or will have ultimate management responsibility for the business process most directly related to each initiative. As the future owner, this individual must be actively involved in the effort. Implementation Team. Assigned to successfully contribute to the delivery effort in various analysis, planning, and implementation roles. Teams will be configured to ensure a fully staffed and successful effort. Participants can be drawn from AMT and across the organization as appropriate. Key Stakeholders. Include others outside of the core initiative team that need to be aware or informed, and may be actively involved in review and feedback during key milestones. This may also include individuals from other departments that will be impacted by specific initiatives.

35 SECTION 6 31 Workforce and Staffing Workforce and staffing constraints should be a key consideration in reviewing and finalizing the schedule presented in Section 4. The schedule should be realistic, and initiative owners should have ample time allocated within their existing responsibilities to ensure success. In some cases, DEN may be able to: Bring on outside expertise to develop initial methodologies (with appropriate levels of involvement and collaboration), and the resulting tools can then be owned and implemented by DEN staff. Utilize outside resources for specific implementation tasks (i.e. field condition assessment or information systems configuration) These and other strategies will allow the organization to balance resources while gaining the efficiencies and improvements from newly-implemented practices. In addition, the implementation schedule and work plan should be developed in consideration for the current available resources within the AMT as well as future staffing plans.

36 SECTION 6 32 Ongoing Management and Performance Tracking DEN has selected several overarching performance measures to track program progress and quantify baseline performance and trends over time. This will allow AMT to demonstrate that the program is delivering quick wins and has clear longterm benefits (this is in addition to the pathway metrics in Section 4. This activity can be considered as a stepping stone to a more formal annual asset management report that can be developed as a stand-alone document, or incorporated into an appropriate section of DEN s annual report(s). The following page lists 12 initial performance measures that DEN is currently putting in place to measure asset management program outcomes. These will be formally reported as part of ongoing activities as they are developed, configured, and validated.