Waterloo Asset Management System Implementation: Application of Theory of Constraints - Eliminating Silo-Effects without Disturbing Silos 12th National Conference on Transportation Asset Management Session: Making Asset Management Decisions Milos Posavljak, PhD Cndt., P.Eng Susan L. Tighe, PhD, P.Eng Cassandra Pacey, CPA, CGA July 17, 2018 City of Waterloo and University of Waterloo How long does it take to go from San Diego to Waterloo? Presentation Overview Goals Application of theory of constraints AM interpretation of Product-Process matrix Operationalizing Asset Management Planning Framework Documental Asset Management Framework Elevating Request for Proposal (RFP) constraint Elevating performance measure development constraint Elevating “asset management system” understanding constraint Elevating corporate wide information flow constraint Results / Conclusions Goals Provide details on City of Waterloo effort in: Developing and implementing comprehensive asset management system, and associated processes Advance industry understanding of extreme orgo-technical complexities associated with infrastructure asset management processes Introduce novel approach to taking asset management planning from strategy to practice Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 1 Identify system’s constraint(s) 2 Decide how to exploit the system’s constraint(s). 3 Subordinate everything else to the above decision(s). 4 Elevate the system’s constraint(s). 5 Warning! If in the previous steps a constraint has been broken, go back to step 1, but do not allow inertia to cause a system’s constraint. (Goldratt, 2004) Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 1 Identify system’s constraint(s): obstructed view of existing raw information limited corporate data-driven performance measure development mistakenly equating term “system” to software limited access to corporate wide information flow Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 1 Identify system’s constraint(s): obstructed view of existing raw information limited corporate data-driven performance measure development mistakenly equating term “system” to software limited access to corporate wide information flow effects of organizational siloing Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 2 Decide how to exploit the system’s constraint(s): apply lessons from manufacturing industry provide visuals of asset management processes within public sector managing agencies (remove, fits in above point) expose development of technical system part to same quantity and variety of information as professional Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 2 Decide how to exploit the system’s constraint(s): apply reliability theory to corporate information explain why asset management systems are professional- centric rather than software-centric tap into silos via “corporate conscience" Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 1 Identify system’s constraint(s) 2 Decide how to exploit the system’s constraint(s) apply lessons from manufacturing industry: assume our “soft” informational products are equivalent to manufactured assume our information supply-chain is equivalent to manufacturing supply-chain of raw materials assume our information products are equivalent to manufactured assembly of parts Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 1 Identify system’s constraint(s) 2 Decide how to exploit the system’s constraint(s) apply lessons from manufacturing industry: assume our “soft” informational products are equivalent to manufactured goods map public infrastructure managing agency Infrastructure Managing onto Product- Agency Process Matrix Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 1 Identify system’s constraint(s) 2 Decide how to exploit the system’s constraint(s) apply lessons from manufacturing industry: assume our information supply-chain is equivalent to manufacturing supply-chain of raw materials provide visual of horizontal information flow through organization Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 1 Identify system’s constraint(s) 2 Decide how to exploit the system’s constraint(s) apply lessons from manufacturing industry: assume our information products are equivalent to manufactured assembly of parts provide visual of documental relationships Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 1 Identify system’s constraint(s) 2 Decide how to exploit the system’s constraint(s) apply lessons from manufacturing industry assume our “soft” informational products are equivalent to manufactured goods map public infrastructure managing agency onto Product-Process Matrix assume our information supply-chain is equivalent to manufacturing supply-chain of raw materials provide visual of horizontal information flow through organization assume our information products are equivalent to manufactured assembly of parts provide visual of documental relationships 3 Subordinate everything else to the above decision(s): minimize abstractness of project effort increase awareness of project’s very high complexity provide conceptual foundation of agency’s location within sample space of organization types 4 Elevate the system’s constraint(s): obstructed view of existing raw information mistakenly equating term “system” to software limited access to corporate wide information flow Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 1 Identify system’s constraint(s) 2 Decide how to exploit the system’s constraint(s): expose development of technical system part to same quantity and variety of information as professionals are exposed to Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 1 Identify system’s constraint(s) 2 Decide how to exploit the system’s constraint(s) expose development of technical system part to same quantity and variety of information as professionals are exposed to 3 Subordinate everything else to the above decision(s): perform preliminary analysis of all information during Request for Proposal preparation provide all information as part of Request of Proposal advertisement 4 Elevate the system’s constraint(s): obstructed view of existing raw information Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 1 Identify system’s constraint(s) 2 Decide how to exploit the system’s constraint(s) apply reliability theory to corporate information: we are managing assets to next treatment rather than failure analyze engineering, financial, and administrative information to derive: frequency of treatment average cost of treatment average rate of asset deterioration Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 1 Identify system’s constraint(s) 2 Decide how to exploit the system’s constraint(s) apply reliability theory to corporate information we are managing assets to next treatment rather than failure analyze engineering, financial, and administrative information to derive: frequency of treatment average cost of treatment average rate of asset deterioration 3 Subordinate everything else to the above decision(s): request corporate wide information access perform analysis at most granular possible level of asset inventory do not wait to have a “complete” inventory 4 Elevate the system’s constraint(s): obstructed view of existing raw information limited corporate data-driven performance measure development Application of Theory of Constraints Goal generate future (quantified) asset-performance graph(s) in a timely manner at any point within organizational information flow 1 Identify system’s constraint(s) 2 Decide how to exploit the system’s constraint(s) explain why asset management systems are professional-centric rather than software-centric: formal definitions phenomena to be mimicked or serviced by software is on extreme end of complexity negative impact of popular culture understanding of software Application of Theory of Constraints Goal generate future (quantified) asset-performance