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West Derwent Pipeline Optimised Decision Making – Sandy Muir August 2007

West Derwent Pipeline - ODM

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West Derwent Pipeline

Optimised Decision Making – Sandy MuirAugust 2007

Project Scope

• Primary Objectives

– Develop a strategic asset management plan for the West Derwentpipeline taking into account the pipeline condition and the risksassociated with the pipeline

– Create a project template which would be used to conduct similarcondition studies of all Hobart Water’s major underground assets in thefuture

Optimised Decision Making

Methodology

Optimised Decision Making

• Integrated methodology

– Involved site work through to analysis andstrategy development

– Involved a broad skill-set

• Involved multiple tools

– Site investigation and testing

– Operational knowledge

– GIS

– Risk Modelling

– ODM Modelling

• Used AM approach from the InternationalInfrastructure Management Manual andOptimised Decision Making Manual

West Derwent Pipeline• 47.8 km long supplying water from the north

• Mix of above and below ground

• Includes:

– Creek crossings

– Tasman bridge

– Road reserves, private property and crown land

Optimised Decision Making

Pipe type Locked bar or welded steel

Age 1 – 83 years old

Diameter 450 – 810mm

Wall Thickness 4.7 – 8mm

Pipe JointsSpigot and socket, rubber ringor welded joints.

Lower Reservoir

Tolosa Dam

Pipeline Environment

Optimised Decision Making

Approach Taken• Pipeline divided into 8 segments

and 38 elements

• Involved site testing andexcavations (14 in total)

• Soil testing for corrosivity includingresistivity, pH, sulphides, moistureetc

• Pipe condition analysed usingdestructive and non destructivetesting

• Processes developed for assessingrisk

Optimised Decision Making

Approach Taken (continued)

Optimised Decision Making

• Condition criteria

– Cut outs

– CCTV

• Use of GIS

– Criticality / Risk Analysis

– Apply Environment Factors

– Display Treatments

• Risk Analysis

– Display high consequence elements

– Identify high risk elements.

• ODM Analysis

Pipeline Condition

Optimised Decision Making

The Analysis

Optimised Decision Making

• Risk cost model used incorporating– Direct repair cost

– Environmental impacts

– Public image

– Property damage

– Lost revenue

• ODM inputs– Pipe Segment

– Pipe Element Age of Asset (yrs) - life consumed

– Useful Life (yrs)

– Remaining Life adjusted by environmentalconditions

Aggressive soil

Ground conditions (wet or dry)

Pipe coating availability

– Replacement Cost ($)

– Treatment type, cost and life extension

– Risk exposure over time before & after treatment

ODM Analysis

Optimised Decision Making

• Review TreatmentOptions per Element

• Input options into ODMmodel

• Calculate NPV over time

• Assess findings andidentify most appropriateoption at this time

-$60,000

-$50,000

-$40,000

-$30,000

-$20,000

-$10,000

$0

$10,000

$20,000

$30,000

$40,000

$50,000

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026N

PV

Year to Start Treatment

NPV versus Year to Start

The Outcomes - Risk

Optimised Decision Making

Pipe Element Direct Repair

Cost

($)

Environ.

Impacts

($)

Public

Image

($)

Property

Damage

($)

Lost

Revenue

($)

Consequence

Cost

($)

Prob. of

Failure

Risk

Exposure

($)

Berridale Pits to Oak Hill 16,090 1,630 5,000 7,500 2,325 32,545 0.4 $13,018

Oak Hill 4,840 315 5,000 0 128 10,283 0.28 $2,879

Oak Hill Residential 4,840 1,315 5,000 0 128 11,283 0.28 $3,159

Oak Hill Residential to Islet Rivulet 4,840 315 5,000 0 128 10,283 0.28 $2,879

Islet Rivulet 4,840 630 5,000 0 9 10,479 0.48 $5,030

Islet Rivulet to Humphrey Rivulet 16,090 1,630 5,000 7,500 2,325 32,545 0.13 $4,231

Humphrey Rivulet 16,090 315 5,000 0 2,325 23,730 0.28 $6,644

Humphrey Rivulet to RecreationReserve 16,090 315 5,000 0 2,325 23,730 0.13 $3,085

Recreation Reserve to Tolosa Dam 16,090 3,150 10,000 7,500 2,325 39,065 0.13 $5,078

The Outcomes - ODM

Optimised Decision Making

Pipe Element Treatment Options Minimum

NPV

($)

Yearminimum

NPVapplied

MaximumNPV

($)

Yearmaximum

NPVapplied

NPV

trend overtime

11 - Berriedale Pits to Dodson St.Rail Crossing

Cathodic protection

Line pipe section

Duplicate main with 800dia pipe

-$261,504

-$801,321

-$3,307,679

2006

2006

2006

-$63,800

-$212,870

-$906,566

2025

2025

2025

Rising inpositivedirection

12 - Dodson St. Rail Crossing Cathodic protection

Line pipe section

Duplicate main with 800dia pipe

$186,498

$158,352

-$145,654

2006

2006

2006

$199,121

$189,475

$105,415

2018

2025

2025

Invertedparabola

13 - Dodson St. Rail Crossing toCrossing

Cathodic protection

Line pipe section

Duplicate main with 800dia pipe

Repair internal lining,internally clean and coatcorroding/uncoated joints

$572,975

-$146,459

-$3,471,466

$1,612,717

2006

2006

2006

2006

$818,863

$620,491

-$301,119

$2,163,452

2025

2025

2025

2025

Rising inpositivedirection

14 - Elwick Pit Road Crossing Cathodic protection

Line pipe section

Duplicate main with 800dia pipe

Repair internal lining,internally clean and coatcorroding/uncoated joints

$291,728

$206,407

$277,436

$254,236

2006

2006

2006

2006

$323,362

$299,769

$165,983

$312,361

2025

2025

2025

2025

Rising inpositivedirection

except formain

duplication

The Outcomes - Strategy

Optimised Decision Making

Pipe Element Treatment Option Year

Berridale Pits to Oak Hill Replace at end of life 2030

Berriedale Pits to Dodson St. Rail Crossing Monitor and repair if required Ongoing

Dodson St. Rail Crossing Sacrificial cathodic protection 2006

Dodson St. Rail Crossing to Crossing Cathodic protection 2006

Queens Domain to Domain Tanks Monitor and repair if required Ongoing

Domain Tanks to Botanical Gardens Road Crossing Cathodic protection 2007

Botanical Gardens Road Crossing Monitor and repair if required Ongoing

Botanical Gardens Road Crossing to Tasman BridgeRoad Crossing

Line or replace when necessary 2033

Tasman Bridge Road Crossing Line or replace when necessary 2024

Tasman Bridge Replace at end of life 2043

The Next Steps

Optimised Decision Making

• Apply recommended treatments in next 5 years

• Review strategy every 5 years to:– Update pipeline risk

– Re-analyse findings for segments in following 5 years e.g. Are the currentrecommendations still applicable?

• Implement data collection process to enhance the base supportingdata and assumptions

• Train Hobart Water personnel to undertake analysis

On Reflection• Representative test pits are needed to increase the level of confidence in the results.

In assessing test pit sites, factors that should be accommodated include:

– Surrounding environment e.g. proximity to water courses (salt and freshwater);

– Type of soil; and

– Soil moisture content.

• On-site work needs to be managed to reduce the risk of budget and time over-runs.This includes:

– Obtaining permits;

– Road closures;

– Bad weather;

– Shut-off time and notification of customers; and

– Locating 3rd party services.

• To improve confidence in the process there is a need to collect and retain failurehistories.

Optimised Decision Making

On Reflection (continued)• Need to recognise both qualitative and quantitative data in the initial activity to gather

sufficient data.

• Use of different skills and tools i.e. GIS, asset management, operations, contractorsrequire extensive co-ordination to manage the total process.

• When a break occurs along a main there is an opportunity to view an undergroundsection of pipe. The following types of testing may be applied:

– Pit gauge measurements;

– Steel thickness measurements;

– Soil resistivity; and

– Soil to pipe potential.

• It is not the end, it is the beginning. Established processes and data requirementsduring the project need to be retained for ongoing analysis.

Optimised Decision Making

Benefits to Hobart WaterThe project provided the following benefits to Hobart Water:

– Focussed on the needs of the pipeline;

– The GIS has been updated to incorporate soil parameters and inputs supporting theanalysis;

– The data required to update this analysis and support asset management practices isbeing gathered by staff;

– Risk has since been implemented in Hobart Water;

– The processes have since been applied across the rest of the infrastructure; and

– A long term strategy has since been developed for all Hobart Water’s assets.

Optimised Decision Making