AM/FM Project cost justification achieved with applications
Linda L. Oliveira
Cook-Hurlbert, hlC., 9111 Jollyville Road
Suite 105, Austin, Texas 78759
Abstract
The issue of justifying AM/FM project expenditures while providing benefits to users has always been a
difficult issue for project managers to resolve. Converting data alone does not Justify the potentially huge
costs involved. Using the converteddata provides costjustification for most projects by improving
productivity, customersatisfactionand plant efficiency. By implementingapplicationsearly into the project,
information entered into the system can be accessedand distributed efficientlyand easily. Cost reductions for
current procedures and operations can be evidenced by several factors including increased speed of
informationinput and delivery, reductionof data duplication,improvedoutput formats, and use of resources.
Introduction
More and more utilities are deciding that AM/FM projects are necessary to compete in today’s ever changing
market. The fact that this direction is necessary does not always provide the means by which governing
bodies can allocate the required fimds. Identifying the components of the intended AM/FM project that can
be leveraged to provide the most benefits is essential whenjustifying its expense. How departmentsjustify
these projects is the focus of this paper.
Competition
Deregulation. Consolidation. Divestiture, These watch worda have been the wakeup call for utilities over
the past few years. Where previously the generally accepted idea was “build it and they will come”, now
utilities are forced to respond to the watch words of today by improving the management of their core
businesses. The core business of utilities is providing service to customers, be it generation, transmission or
distribution, this service is being scrutinized and compared to other available sources. Therefore this
improvement is for one reason only - survival. Only those utilities who have the most efficient operations,
that is lower costs of operation compared to higher levels of customersatisfactionwill be viable, healthy
companies. The rest will either be bought out, consolidatedwiti other utilities, or find themselveslacking in
customexsand burdenedwith heavy expensesfrom maintaininglarge networks that serve an ever decreasing
customerbase.
Project Components
Hardware and software components are always at the forefront of any project. These are diverae in nature
and dependent upon several factors, among them personal preferences of management and technical staff.
Hardware processing speeds increase every few months, and the software that runs on it is also speeding
along the development highway. Then you must take into consideration the data that will support the system,
the users who will access it and the applications they require to do their jobs.
Understanding that the hardwareand softwareare individual choices, I will leave these for another
discussion, and concentrateinstead on the commonelementsof AM/FM projects. Data conversionis the first
elementmost people think of when planning a new AM/FM implementation. This process can be the longeat
in duration, the costliest single componentand the greatestsourceof discussionamongproject teams.
Convertingfrom paper sourcesto a digital format is generallyacceptedas a basic requirementfor any
successfulAM/FM project. But, what do you get for the time, money and lengthy discussions?
First of all you get a data source that is compatiblewith your new system. This maybe attained through data
translation, scanningand raster manipulationof hard copy sources, digitizing from original maps, field
338?surveys to collect and veri~ plant in the field, or some combination of these methods. The point is, it has to
be done at some level, before any benefit can be realized. Data conversion alone does not justify an AM/FM
project. Don’t get me wrong, it does have benefits. First it automates the data creation and maintenance
process, which saves time and labor while creating more standard, readable map products. It also allows for
in-house or reduced out-sourcing of the production of map products, i.e. map books, wrdl maps,... More and
more utilities are taking these tasks upon themselves and in doing so save money, and time while maintaining
control of their &ta, and its production schedule.
Application Influences
But data conversion is also the largest component cost of any project. Data supports applications, and it is
the applications that provide the greatest benefit and justification for implementing AM/FM projects.
Applications that are implemented early in the project’s life cycle provide visual, hard dollar returns on the
project’s investment. Designers can have access to current inventory and material costing information which
can mean the difference between designing a job that requires special order or out of stock materials versus a
job design which uses available stock. Applications that enable you to analyze alternatives using in-stock
versus out-of-stock material, may have a dramatic impact on planning, construction scheduk, and cash flow.
Plotting applications can also be put to use early in the project. These applications allow map production to
be done to a large extent in-house. Customized templates, bulklbatch plotting functions, and specialized map
products can be quickly produced using raster data or areas containing completed vector conversion data.
Providing crews with current map information reduces the times required to locate and consequently make
repairs. Map books can be updated page-by-page as needed rather than on an annual basis when the data is
out-sourced to be printed. Work orders can be entered into the system and plotted as necessary instead of
waiting for the next (possibly annual) map book update.
By implementing work design applications early in the project, the work designs can be prepared within the
AM/FM system. Plots of the design can be directed to remote sites decreasing the amount of routing time
from engineering to construction. Construction crews can see work designs (as designed or as-built) on their
work request. Schedules can be prepared allowing jobs to be combined, or timed such that crew assignments
are better used efficiently. When the job has been built, the as-built changes can then be updated into the
system facilitating quicker close-out, realizing faster accounting benefits.
Equipment sizing can also be quickly and easily determined utilizing applications integrated into AIWFM
systems. These applications allow designers to have on-screen access to tools that determine if the equipment
they have specified will support the load they’ve anticipated. Furthermore, the designer can use the system to
suggest the proper equipment size based on the overall design, leaving much of the guess-work out of the
equation. This minimizes expensive over building while maximizing the use of installed equipment, saving
hard dollars on each installation.
By implementing applications similar to these, utilities can gain an advantage by providing a higher quality of
service, improving system reliability, reducing inventory, and reducing excess labor charges.
Putting AM/FM systems on user’s dwks quickly demonstrate the pay back in soft benefita as well. For
instance, designers can have access to current technology, allowing them to develop new skills. Repetitive
tasks can all but be avoided, leaving more time for alternative design scenarios, more accurate costing
estimates can be generated in less time and graphic depiction of designs can aid in the requirements
understanding. Users of all levels should see an improvement in the time necessary to complete daily tasks as
a result of automation.
Routing of designs can be done through the system, alleviating the task of manually moving the file iiom
approval level to approval level. The number of individual data bases users maintain to provide the
information and reporting fimctions they require can be reduced to a single corporate solution. This reduces
the amount of resources needed to update and maintain the information, while giving users access to data they
need and restricting access to secure information..
