Académique Documents
Professionnel Documents
Culture Documents
Part 1: Introduction to
Asset Management
Project Manager
Kathy Martin, MR WA
Prepared by
Kieran Sharp and Tyrone Toole, ARRB Group
This guide is produced by Austroads as a general guide. Its application is discretionary. Road
authorities may vary their practice according to local circumstances and policies.
Austroads believes this publication to be correct at the time of printing and does not accept
responsibility for any consequences arising from the use of information herein. Readers should
rely on their own skill and judgement to apply information to particular issues.
Sydney 2009
Austroads profile
Austroadsp purpose is to contribute to improved Australian and New Zealand transport outcomes
by:
providing expert advice to SCOT and ATC on road and road transport issues
Austroads membership
Austroads membership comprises the six state and two territory road transport and traffic
authorities, the Commonwealth Department of Infrastructure, Transport, Regional Development
and Local Government in Australia, the Australian Local Government Association, and New
Zealand Transport Agency. Austroads is governed by a council consisting of the chief executive
officer (or an alternative senior executive officer) of each of its 11 member organisations:
The success of Austroads is derived from the collaboration of member organisations and others in
the road industry. It aims to be the Australasian leader in providing high quality information, advice
and fostering research in the road sector.
CONTENTS
1
INTRODUCTION ............................................................................................................ 1
1.1
1.2
1.3
1.4
1.7
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
3.1
3.2
3.3
Structure ....................................................................................................................... 21
Relationship to other Austroads Publications ............................................................... 22
Scope of other Parts of the Austroads Guide to Asset Management ........................... 23
3.3.1
Part 2: Community and Stakeholder Requirements ....................................... 23
3.3.2
Part 3: Asset Strategies .................................................................................. 23
3.3.3
Part 4: Program Development and Implementation........................................ 24
3.3.4
Parts 5, 6 and 7: Asset Performance .............................................................. 24
3.3.5
Part 8: Asset Valuation and Audit ................................................................... 24
1.5
1.6
REFERENCES ...................................................................................................................... 25
Austroads 2009
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TABLES
Table 1.1:
Table 1.2:
FIGURES
Figure 1.1:
Figure 1.2:
Figure 2.1:
Figure 2.2:
Figure 2.3:
Figure 2.4:
Figure 2.5:
Figure 3.1:
Austroads 2009
ii
INTRODUCTION
1.1
Effective asset management is of critical importance for all transport agencies and managers of
road infrastructure because:
Roads and associated infrastructure are vital links in the chain of communications providing
access and mobility for communities and industry.
The value of road infrastructure assets for all classes of roads in Australia and New Zealand
is extremely high compared to other public infrastructure; of the order of A$150 billion dollars
in replacement cost terms. This equates to approximately 50% of the total government
capital investment in education, health, energy, mining and manufacturing combined.
Effective stewardship is essential to help ensure public safety, for retaining the value and
serviceability of these assets for future generations, and for providing best value to users and
investors.
The government and the community demand increased accountability for effective and
efficient spending of public funds.
Competition for limited funds across government and other sectors is increasing.
1.2
The key asset management objective contained in the Austroads Assets Strategy is to minimise
the whole of life cycle costs of road assets, whilst aiming to meet the needs and expectation of
the community and other stakeholders who use or benefit from the asset, and to fulfil government
objectives in terms of safety, environment and equity of access. Within this context, its main focus
is on the management and preservation of physical assets.
Thus, when asset managers speak about whole of life cycle costs (WOLCC), they mean those
costs incurred by the responsible road agency as well as the costs incurred by road users, such as
vehicle operating costs, travel time and crash costs (see Figure 2.4). In an ideal situation, where
funding is not constrained, the best possible outcome for the community is achieved when the sum
of road agency costs and road user costs is minimised.
To meet these objectives, asset managers should ensure that:
Assets are managed to conditions which are appropriate for intended use.
The immediate and long-term budget requirements, together with the consequences of
budget variations, are explicit.
Risks associated with asset use are managed, recognising the duty of care owed to the
public, with emphasis given to safety and minimising environmental impacts.
1.3
Roads exist as part of an integrated land transport system as a service delivery arrangement.
Therefore road system managers need to have a strategic view to manage demand and match
demand with supply, through the ongoing provision of new and upgraded links and maintenance of
existing stock to ensure the least long term cost to the community.
It is essential that this context be borne in mind even in addressing the more routine maintenance
activities to ensure cost-effective solutions are being delivered.
Austroads 2009
1
Whilst the term asset management has a variety of interpretations in terms of scope, in the
broadest sense total road system management includes all aspects concerned with the provision,
operation, maintenance, renewal and disposal of road infrastructure assets, such as:
transport planning
traffic modelling
road design
road safety
traffic engineering.
However most of these functions are well documented in the Austroads Guide to Pavement
Technology and the Austroads Guide to Asset Management complements these other guides by
focusing on best practice management of the physical infrastructure. Therefore, for the purposes
of this guide the definition of road asset management is:
Road asset management is a comprehensive and structured approach to the longterm provision and maintenance of physical road infrastructure using sound
engineering, economic, business and environmental principles to facilitate the effective
delivery of community benefits.
It focuses on the physical asset recognising that:
The management of physical assets is not an end in itself, but is undertaken to ensure the
operating functionality of the road network.
Purely asset-oriented interventions will prove constraining and potentially too expensive by
not keeping a broad enough focus on all possible solutions.
Whilst specialised sections of member agencies are actively concerned with the provision of
new assets, asset management practitioners must be aware of the ongoing management
implications of expansion decisions.
Asset managers need to make decisions in the knowledge of road use management (RUM)
strategies and provide feedback to the road use managers in order to ensure optimal use of
current assets.
1.4
1.4.1
In establishing best practice in asset management, Austroads has recognised the need for:
Austroads 2009
2
Thus, in 2002, Austroads published a set of Integrated Asset Management Guidelines for Road
Networks (Austroads 2002b), referred to as the IAM Guidelines. These are fundamental to the
fulfilment of Austroads asset management objectives and, therefore, complement the aims of this
guide, and will remain as a flagship publication within the Austroads Guide to Asset Management.
This section of the guide summarises the scope and contents of the IAM guidelines and places
them in context by identifying links with the best practice recommendations and examples provided
herein and encouraging commitment to the following key principles:
In so doing it describes:
1.4.2
To aid the establishment of a consistent framework of processes and procedures for improving
asset management practice, Austroads has adopted a conceptual framework which comprises
three main parts and seven phases as shown in Figure 1.1 and Table 1.1.
Table 1.1: The asset management process
Asset management strategic planning
Part 1
Phases 1 to 4 *
Define objectives
Form asset strategies
Develop investment programs
Identify asset maintenance needs
Phase 5 *
Implement works programs
Phases 6 and 7 *
Audit
Review
This conceptual framework has since been developed further and personalised by some state road
authorities as part of their internal asset management practice. Many organisations have also
systematised this process, in terms of establishing corporate procedures and complementary
information systems and decision support tools. The process and procedures are fundamental,
and provide the basis for specifying technological systems.
Austroads 2009
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Austroads 2009
4
The scope of network level asset management covered by the Guide to Asset Management
concentrates on the provision and maintenance of physical infrastructure, shown as a
subcomponent of Figure 1.1. However, it does not ignore the need for complementary activities
and the benefits arising from an integrated approach, and seeks to alert asset managers about the
range of infrastructure-oriented and other solutions at their disposal.
The strategic planning stage is vital to effective asset management and consists of:
The Planning Sub-Process, which describes the overall process flow, and outlines the need
for various frameworks, standards and strategies.
The Information and Communication Sub-Process, which deals with the flow of information
from the Planning Sub-process. This information serves to involve and inform external
stakeholders, and facilitates decision making at different levels of an organisation by
articulating internal objectives, strategies and plans.
Whilst strategic planning may be performed on a multi-year basis linked to an authoritys planning
and funding cycles, specific components fit an annual cycle, including:
optimisation and prioritisation of options and proposed funding scenarios and an outline of
works programs
The achievement of objectives through monitoring (Phases 6 and 7) provides feedback on the
overall process allowing strategies to be reviewed and further actions planned.
Organisational objectives, strategies and standards must also be regularly reviewed at least for
current relevance.
1.4.3
Asset management is a way of doing business in the broadest sense. It is not simply about
implementing certain activities to achieve specified technical standards, nor is it primarily
concerned with the application of modern software tools, although each have a role to play. It is in
fact much broader. It is about delivering better performance results through appropriately targeted
investment in the introduction and refinement of improved people skills, products and processes.
The ultimate goal is to deliver benefits to all road transport stakeholders.
Four sequential stages are recommended to progress a road agency from the early stages of
initiating an asset management program to full implementation of the Austroads IAM process,
namely:
Stage 1
Program establishment
Stage 2
Stage 3
Stage 4
General implementation.
Whereas many readers of this document will belong to institutions with established practices, the
Austroads Guide to Asset Management recommends a structured re-assessment of current
organisational practice to identify priority areas for improvement. Many reputable organisations
have adopted a similar approach and reaped significant benefits from so doing (AASHTO 2002
and VicRoads 2004a).
Austroads 2009
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1.5
The role of asset managers in integrating organisational decisions embraces the following:
providing a link between strategic goals and longer term processes and annual project level
decisions
providing a link between agency road use management and physical asset decisions
ensuring the appropriate management and flow of asset related data and information across
the organisation in order to inform asset strategy development and monitor asset
performance
providing a link between finance, planning, human resources, information and delivery
functions of the organisation
Network planning
Programming
IAM phases or
related activities
Monitoring and
evaluation
Organisations concerned
IAM Phases 1
and 3
IAM Phases 2
and 3
IAM Phase 4
IAM Phase 5
Project/asset managers or
operators
IAM Phase 5
IAM Phases 6
and 7
Owners
Asset managers or operators and
service providers would be
expected to implement internal QA
systems as part of each specific
function
Preparation
Implementation of
physical works
Typical aims
Austroads 2009
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Organisations, and individuals, should aim to identify their role in the overall process. Identifying
such differences in functional roles, as illustrated by the examples in Table 1.2 will help improve
effectiveness through focusing on particular tasks and doing them well. In so doing, the following
points should be emphasised:
1.6
Road asset management needs to take place in support of total (land) transport system objectives,
which in turn aim to meet the transport needs of the community. At the highest level transport
contributes to broader societal and whole-of-government objectives.
The challenge therefore is for road asset management to consider and contribute in a proactive
manner to meeting this demand, and not simply respond with a supply-side approach.
The Australian Transport Council (ATC) has published National Guidelines for Transport System
Management in Australia (ATC 2004) to provide a framework for non-urban land transport
decisions. These guidelines address the Australian Governments approach to funding, planning,
developing and managing Australias national land transport infrastructure.
The National Guidelines address multiple modes, both road and rail, and are primarily concerned
with the designated national land transport network and its corridors, although the overall
framework is relevant to all classes of transport infrastructure and associated modes.
The National Guidelines adopt a similar seven-phase approach as endorsed by Austroads, and
aim to achieve transport system objectives which are vertically linked, and integrated as illustrated
in Figure 1.2. The five-phases illustrated in the Figure are complemented by two further phases,
namely project and program implementation, and post-completion review.
The National Guidelines also recognise that direct linkages will exist between non-sequential
phases, e.g. between policy choices and program structure, such as regional Auslink programs,
black spot improvement programs, etc. Further examples would include the balance between the
routine maintenance, preventative maintenance and rehabilitation components of an overall road
infrastructure preservation strategy.
A key requirement is to ensure strategic fit between high level objectives and project and program
responses. To achieve this requires appropriate strategies to be established and policy choices to
be made. Examples of the latter include:
the degree to which desired outcomes should be pursued through land use policy
developments rather than applications of transport instruments alone
the strategic emphasis which should be given to such issues as road freight versus rail
freight as preferred land transport modes
the funding of capital (new asset stock) versus maintenance (existing asset stock)
investment
Austroads 2009
7
The current version of the National Guidelines is predominantly related to large-scale capital
investment on a selected part of the total land transport system, while this guide is concerned with
a network-oriented approach to road infrastructure preservation covering all road classes.
However, the above issues are equally pertinent to both sets of guidelines and are addressed
throughout this document.
Road asset managers should familiarise themselves with the National Guidelines and always seek
to support the transport needs of the community in its broadest sense.
In addition, it should be understood that this new, integrated approach to transport system
management lends itself to the development of strategic long-term directions which promote the
development of scenarios for anticipating future demand for transport services. A number of
Austroads members have adopted this approach as part of their strategic planning process, see for
example Queensland Department of Main Roads (2002) and Queensland Transport/ Queensland
Department of Main Roads (2000), thus helping to ensure adoption of integrated solutions to meet
societys needs, both now and in the future. Such initiatives are encouraged amongst all
organisations.
Austroads 2009
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1.7
To achieve effective asset management this guide offers guidance and best practice examples of
the following asset management principles:
adoption of a rigorous, and cyclic process-based approach which is policy-driven and results
oriented and customer focused
characteristics and example key results areas and key performance indicators
managing risks.
Austroads 2009
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2.1
Asset management is conducted within the context of organisational goals, policies and budget
constraints. Goals and policies must be established within a framework which incorporates
community input. Performance objectives provide a way to convey to the community how
agencies are managing public assets.
Figure 2.1 illustrates how asset management strategies aim to meet these needs and are
developed from a number of elements. An understanding of how they relate is necessary to
develop and review the effectiveness of an overall strategy. These relationships also provide a
framework to monitor and review existing strategies.
In recognition of the principle that roads should be treated as a service to the community, Phase 1
of the Integrated Asset Management Process requires clear assessment and definition of Road
Agency and Stakeholder Requirements and for these to be articulated in terms of key results
areas (KRAs) and key performance indicators (KPIs).
Stakeholder and community input through surveys, focus groups and other structured methods is
an essential requirement of good asset management. Customer input is fundamental in setting
standards and must be followed by ongoing review to track whether customer expectations are
being achieved.
Austroads have and continue to undertake significant studies in this area, see for example Tsolakis
and Thoresen (1998) and the Austroads publication Guidelines for Community Input in Setting
Levels of Service and Intervention Standards for Road Networks (Austroads 2002b). These should
be consulted prior to planning, implementing and presenting the results of surveys.
Austroads 2009
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a need to start at a network level to agree overall principles and prevent local issues from
dominating outcomes from the outset
giving sufficient attention to study design so that the objectives of any consultation are
fulfilled as far as possible
identifying who the community is and ensuring appropriate representation for the task in
hand, including those stakeholders that represent the entire community, those with a local
social interest and those with a clear financial interest
being clear about the value of both qualitative and quantitative surveys, where the latter may
help explain why certain issues are important to users, whilst the former may help quantify
their importance
focusing questions to represent the type of road environment, including different rural and
urban situations, and circumstances where investment is driven by traffic demand or mostly
by social justice and other factors
Agency KRAs should be defined for each generic area in which improvement is required or
performance should be monitored. They should be in line with corporate objectives and should
reflect an agencys internal operations and performance, and the service provided to users or
areas affecting other stakeholders. KRAs should embrace economic, social, safety,
environmental, customer service and financial performance. For example:
deliver a target level of service, including meeting ride quality and capacity targets which
contribute to overall transport efficiency
Asset management objectives, or KPIs, should also be formulated which are more tightly defined in
terms of indicators and target criteria. Consequently, these KPIs should be specific, directly and
objectively measurable, attributable, affordable, capable of being monitored, achievable and be
used to:
monitor the achievement of organisational goals and service levels in IAM Phases 6 and 7.
Austroads National Performance Indicators (Austroads 2001) facilitate assessment of both road
system and road agency performance of Austroads member authorities and can provide a basis for
defining suitable indicators for other organisations. The Austroads performance indicators are
available on the Austroads website and at the time of writing comprise a set of 36 indicators, ten of
which are classed as road agency performance indicators. Specific targets are not set, but
statistics related to each indicator are published and provide a basis for monitoring trends in
service levels and other indicators.
Austroads 2009
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For asset management, the most widely used road agency performance indicator in Australia and
New Zealand is Smooth Travel Exposure (STE); defined as the proportion of travel undertaken
each year on roads less than a specified level of roughness. Road authorities report this and other
information, typically at annual intervals, and also record achievements against the target or
limiting values which they aim to achieve. Reporting may be made separately for different classes
of road, and targets may also vary.
2.2
The development of road asset management strategies forms the core of IAM Phase 2. Whilst
investment programs concentrate on maintenance and rehabilitation of road pavements and
bridges, they should be developed in coordination with road use strategies. The level of road
system performance provided by the asset can be affected by management actions which
influence the need for travel, the type of travel and types of vehicles allowed.
An effective infrastructure management strategy should address both existing and new assets. It
should contain a suitable range of interventions which are essentially preventative in nature and,
as illustrated in Figure 2.2, can reduce long-term costs. The stitch-in-time policies used by a
number of Australian road agencies, which are particularly applicable to the preservation of
pavement assets, adhere to this principle, for example see VicRoads (1993). These and similar
strategies are highly recommended as they have been found by many practitioners to provide a
return on investment of around two or three times that obtained when assets are allowed to
deteriorate in an uncontrolled manner, or to a condition where full replacement is necessary.
Austroads 2009
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Routine maintenance activities which address minor defects on the carriageway and
structures, off-carriageway works including grass cutting, drain clearing and the like, and
essential activities to remove obstacles from the road and ensure a base level of road safety.
The need for such activities should not be underestimated. Considerable evidence exists
which demonstrates that rates of deterioration are higher in the absence of effective routine
maintenance, including where basic drain clearing is not performed to an adequate level.
Rehabilitation which targets roads whose ride quality has deteriorated significantly, or which
display inadequate structural capacity for current or future traffic loading. By their nature,
such works are very costly and might be expected to be of the order of five to ten times more
costly than a preventative treatment program. Where a large program of rehabilitation exists,
say greater than 3-4% per annum, it is likely that this reflects a lack of investment in periodic
interventions, neglect, poor implementation or a discrete increase in traffic loading patterns.
Timely intervention of appropriate quality is best. Conversely, where the replacement
program is very small, say less than 1% per annum, and programmed maintenance costs are
increasing and condition is falling, it is likely that expenditure on rehabilitation is too low.
Again, timely rehabilitation is required to ensure whole of life cycle costs are minimised.
Appropriate solutions should be developed based on best practice, for example see
Austroads (2004a).
Capacity improvement programs to optimise traffic flow, including identifying the need for
additional traffic capacity or improved traffic management measures. Solutions require
considerable co-ordination both within and between agencies and in many cases the
optimum response may be through improved road use management.
Road safety and blackspot improvement programs to reduce the incidence of road
crashes and provide appropriate facilities for pedestrians and cyclists and other vulnerable
road users.
Management strategies for heavy vehicle access to deliver efficient freight services thus
helping provide customers with goods at affordable prices. However, asset managers are
often worried at the existence of very heavy or oversized vehicles and the potential for
accelerated damage to roads and structures. Safety may also be a concern. It is important
therefore that such issues are taken into account in both infrastructure and road use
management. Strategies need to recognise the current state of knowledge regarding heavy
vehicle contributions to the damage of road pavements and structures, and should aim to
undertake any analysis in a nationally consistent manner (Austroads 2004b).
Austroads 2009
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2.3
As per Phase 3 of the Integrated Asset Management Process, asset strategies should be
developed with clear level of service objectives providing the basis for:
planning needs
assessing risks
all classes of assets, and their use, including for basic access
environmental and social impacts, these being amongst the least visible yet most important.
Each agency must establish levels of service appropriate to its organisational goals and resource
constraints, and consistent with the perceived needs of the community. Absolute levels of service
should be varied with respect to the role and importance of the asset and its use within the road
system. Higher trafficked roads warrant a higher level of service. This increases overall transport
efficiency through better ride comfort and higher travel speeds, and helps reduce costs to road
users.
Lower trafficked roads provide fewer opportunities for direct road user savings to offset investment
costs, and therefore associated service levels are generally lower. However, minimum levels of
service should be encouraged to ensure basic levels of safety and accessibility to essential
services, and to minimise loss of assets. Access also promotes productivity, and is an essential
catalyst to growth in economic and social terms.
Most asset managers and planners recognise such linkages, and there is general acceptance that
a minimum level of service, which may be varied based on demand, should be adopted as a
general policy.
The choice therefore is to set levels of service which strike a balance between being equitable and
in being economically efficient. The range of possible options is illustrated in Figure 2.3. Typically,
practical considerations usually warrant the adoption of equitable standards, which neither favour
economically efficient standards, nor uniform standards. The adoption of a set of stepped
minimum standards can achieve a comparable result, and may form the basis of an economic
base case for investment analyses. Acknowledging this is generally accepted as good practice,
and is highly recommended.
Austroads 2009
14
Most road authorities publish target level of service criteria which are based on a hierarchy related
to function and overall use. In many cases these are also directly related to engineering design
guidelines with respect to the safety, speed and comfort of travel.
The availability of such targets provides a further yardstick against which performance can be
monitored and reported later in Phases 6 and 7.
2.4
a region
a road corridor
Significant benefits can be gained by employing solutions planned using whole of life cycle costing
(WOLCC).
WOLCC involves an evaluation of all the component costs incurred over the whole life of a project.
By adopting a long-term view of the road system, comprehensive WOLCC promotes consideration
of total costs including construction, maintenance and operational expenditure and all of the
variables involved in the evaluation such as user costs (delays, travel time and vehicle operating
costs), safety costs and associated maintenance and rehabilitation costs, agency capital costs and
routine life cycle maintenance costs.
Austroads 2009
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The manner in which the component costs change is illustrated in Figure 2.4, where increases in
construction/rehabilitation expenditure reduce the costs to road users. The optimum (economic)
standard is obtained when the total transport costs are minimised, and this optimum varies in
relation to traffic level and the associated mix of costs. For a given traffic level, if the road is built to
a standard higher than optimum or if the timing of its implementation is either premature or
significantly delayed, then the benefits would not sufficiently outweigh the additional costs and
therefore the solution would be sub-optimal. Care should be taken to avoid false economies
where expenditure shortfall below the optimum level of investment leads to significantly greater
transport costs and long-term asset management backlogs.
WOLCC employs the results of deterioration, the effects of treatments and user cost modelling on
the infrastructure to compare alternative investment strategies, the purpose of which is to:
determine the optimum timing, intervention levels and mix of treatments to be employed.
WOLCC techniques applied at a system-level allow competition for funds to take place between
projects, with the aim of maximising benefits across a road network in order to prepare long-term
road development and maintenance plans under different funding scenarios.
2.5
Risk management is a core component of asset management activities. Key risks managed
through asset management are:
financial risks addressed through the adoption and enforcement of asset preservation and
preventative maintenance policies (see Sections 2.2, 2.3 and 2.4 above)
operational risks by appropriate planning and operational responses in order to limit harm
to individual members of the public or to their property.
This increased alertness has resulted from changes in legislation which was promulgated following
the Australian High Courts decision in 2001 that the law of negligence should apply to roads.
Austroads 2009
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It means that Australian road authorities now owe a duty of care to road users by exercising their
maintenance powers to protect (the users) from foreseeable harm. Failure to effectively manage
the maintenance of roads (and road-related assets) to an appropriate and affordable standard
places authorities in a position of liability on the grounds of misfeasance. Fulfilling this
requirement demands that road asset managers demonstrate they have processes and defendable
plans in place to demonstrate their intent to act responsibly.
The issues surrounding the management of risk are complex since they involve:
policy decisions
Fortunately, an appropriate risk management process has similar components to those used in
asset management.
Asset owners, and delegated managers, should demonstrate compliance with the intent of the law.
This means that certain proactive actions aimed at managing risk are necessary including:
regular inspections
maintenance standards, comprising the inspection periods, defect severity and response
times, developed through community input and aligned to available budget
established and documented business processes and management systems covering policy
development, asset monitoring, priority setting and decision making, resource allocation,
program delivery and audit and incident response.
Thus risk management embraces all IAM Phases and is fundamental to the successful delivery of
outcomes to the users. Provision to manage such risks should form an essential component of all
asset management activities, with priority given to minimising operational risks.
2.6
As noted in Phases 6 and 7, monitoring of asset performance, audit of work carried out and review
of performance achievement completes the cycle of asset management.
Asset performance is monitored by physical condition measurements of all asset classes (e.g.
roughness, surface condition, strength, bridge strength, signage reflectivity). Monitoring processes
need to be selected to enable assessment of customer satisfaction, needs planning or risk
assessment. Monitoring processes vary and must be selected or structured to provide relevant
information at an affordable price.
Asset inventories must be updated to reflect completed work and new condition/inventory
measures. Asset owners are provided with information from delivery function areas through as
constructed drawings and plans for ongoing asset maintenance requirements.
Austroads 2009
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Asset valuation is one method of monitoring asset management effectiveness and is also a
technique for facilitating the translation of engineering assessments into financial terms for
consideration at an accounting level. Various approaches to asset valuation exist, including both
condition-based and age-based depreciation methods (Austroads 2000). Whilst no single
approach is universally accepted, the condition-based approach is favoured by many asset
managers. However, commercial or technical obsolescence are also important factors.
Differences in approaches also include how various asset classes and their component parts are
valued, e.g. separating the valuation of road surfacings, pavements and lower layers, dealing with
land under roads, etc.
However, the main requirement is to achieve consistency in reporting asset values, including
trends, and to allow the effect of investment strategies on future asset value to be determined.
This aids effective communication with financial and general managers, as well as politicians who
represent road users and the local community, and helps to ensure that road management
decisions are made in a broad community context.
On completion of any asset management cycle, the agency should undertake a review of the
existing road asset performance, infrastructure strategies, and whether agency and stakeholder
requirements have been met or exceeded.
A key part of the asset management process is communication with stakeholders. Stakeholders
may include politicians, other government agencies, industry, communities and road users.
Communication with stakeholders may consist of seeking information (such as in setting levels of
intervention standards) or in providing information about a future program of investment.
Strategies for addressing the above requirements are detailed in other parts of the Guide to Asset
Management.
2.7
Information is fundamental to asset management and, as illustrated in Figure 2.5, is used in all IAM
Phases to inform decisions and quantify the results of implementation. Essential information
includes road asset inventories, asset condition, historical records of construction and
maintenance, traffic and other road use data, unit costs, etc. This data then helps inform the
analyses and decisions taken throughout the asset management process.
As technology has developed, more sophisticated and comprehensive road management
information systems, data bases and user tools to collect, store and process data have been
incorporated into asset management practice. Many agencies now use sophisticated pavement
and bridge management systems to facilitate the management of large amounts of data and to
automate some of the analysis required as input to asset management decisions. These systems
have evolved to the point where they have significant potential to improve the overall effectiveness
of the asset management process and communications with stakeholders.
However, substantial resources can be required to operate such systems effectively and care is
needed in their design and implementation.
A pragmatic approach to developing and implementing formal information systems and decision
support tools includes:
clear system specification aligned to documented business processes including defining the
scope based on intended use and the outputs users will require
Austroads 2009
18
simplicity, since this will ultimately retain a greater feel of transparency and comprehension
by users
selection of appropriate models and information categories to produce required outputs, and
planning for data collection and processing
Furthermore, asset managers should ensure that the level of system sophistication and
comprehensiveness is appropriate to the level of resources of the organisation and the level of
decision. As noted earlier, the importance of sound processes and frameworks and good practice
in all elements of asset management are more important than having a sophisticated system.
Robinson et al. (1998) and TRL Overseas Centre (1998) offer additional guidance on the design
and implementation of road management systems.
Austroads 2009
19
2.8
Options for greater efficiency, increased knowledge, better technology, training and the like. all
need to be pursued by agencies to achieve community benefits.
All planning processes existing within road authorities and corporate entities concerned with asset
management will benefit from an appraisal of current practice to review the need for improvements.
A business improvement program should be undertaken at periodic intervals. An assessment of
business processes forms a core component of good practice in asset management. Specific
programs need to be tailored to meet the needs of particular organisations.
Such reviews can reveal blind spots in an organisations processes, or in the message they
communicate. It offers a means of providing state-of-the art benchmarks and identifying possible
gaps.
Developing team and individual competency to achieve best practice requires a people centred
approach, in which it is essential to understand the roles and responsibilities to be filled and to
establish appropriate levels of asset management competencies.
The process for implementing an asset management system within an organisation is described in
the Integrated Asset Management Guidelines for Road Networks (Austroads 2002a).
Other organisations provide similar advice. For example, in their Transportation Asset
Management Guide, the American Association of State Highway and Transportation Officials
(AASHTO 2002) recommends the application of a self-assessment process to help an authority to
characterise its asset management practices and identify opportunities for improvement. The
AASHTO guide also reports a summary of the benchmarking exercise they undertook amongst
participating authorities, and this provides a point of reference for readers.
Austroads 2009
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3
3.1
The Austroads Guide to Asset Management complements the other Austroads guides which
embrace a wide range of subjects and which are readily available, accessible and comprehensive
resource for practitioners. Austroads and others (e.g. state road authorities and industry) have
compiled a great deal of knowledge on the tools, techniques and practices associated with the
management of physical road infrastructure. The Austroads Guide to Asset Management
assembles this knowledge into a single authoritative electronic guide comprising eight parts, as
shown in Figure 3.1.
The target audience for the Guide to Asset Management includes all those involved with the
management of the physical road and bridge infrastructure assets as well as industry, and students
seeking to learn more about the fundamental concepts, principles, issues and procedures
associated with the management of these assets.
The guide includes an introduction to asset management (this document) and offers guidance on
how to determine and plan to accommodate stakeholder/community expectations, formulate and
review asset strategies, develop works and investment programs, assess asset performance and
undertake audit and asset valuation.
Each part of the guide is accompanied by commentaries identified within the text which amplify
the principles and processes by use of examples.
As part of a developing guide of live documents, it is recognised that there will be periodic revisions
to this peak document and other parts within the guide and that some previous Austroads
publications will be superseded by the Austroads Guide to Asset Management. The Austroads
website should be referenced (http://www.austroads.com.au) to ensure the reader is accessing the
latest version of this document.
It is also recognised that asset management procedures will vary between jurisdictions and that in
a number of cases procedures may also be determined by central government agencies to ensure
consistent investment evaluation across portfolios. For this reason this guide does not prescribe
detailed processes. Instead it seeks to introduce the overall general principles and process of
asset management in line with best practice and to offer guidance.
Austroads 2009
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AUSTROADS GUIDES
ASSET MANAGEMENT
BRIDGE TECHNOLOGY
PAVEMENT TECHNOLOGY
PROJECT DELIVERY
PROJECT EVALUATION
ROAD DESIGN
ROAD SAFETY
ROAD TRANSPORT PLANNING
ROAD TUNNELS
TRAFFIC MANAGEMENT
PART 1 COMMENTARIES
COMMENTARY 1: CHARACTERISTICS AND EXAMPLE KRAS AND KPIS
COMMENTARY 2: INCREASING EFFICIENCY THROUGH ROAD USE MANAGEMENT
COMMENTARY 3: MANAGEMENT OF HEAVY VEHICLE ACCESS
COMMENTARY 4: SERVICE LEVELS AND INTERVENTION LEVELS
COMMENTARY 5: WHOLE OF LIFE CYCLE COSTING
COMMENTARY 6: MANAGING RISKS
Figure 3.1: Structure of Austroads Guide to Asset Management with focus on Part 1
3.2
Austroads 2009
22
Additionally, decision makers will need to ensure other documents such as the Austroads guides to
Road Transport Planning, Project Evaluation and Road Safety are referred to where appropriate.
A Glossary of commonly-used terminology associated with asset management and other useful
information on the Australian and the New Zealand road systems is available on the Austroads
website (http://www.austroads.com.au).
3.3
This Introduction to the Austroads Guide to Asset Management presents the concepts and guiding
principles of asset management. These components are then described in more detail in Parts 2
to 8 of the guide. A summary of the scope of these documents is given below.
3.3.1
The asset management planning process starts with the identification of organisational and
stakeholder requirements, and this forms the core of Part 2.
Its aim is to foster good practice in the identification of road agency objectives, including how to
take account of customer expectations, social and environmental issues, stakeholder input from
external agencies and government and organisational priorities.
Part 2 encourages the use of effective stakeholder consultation to help identify priorities, potential
issues, social impacts, opportunities, alternatives and solutions to problems, and helps to identify
those outcomes and levels of service which the community is prepared to pay for.
Guidance is given on how to present feedback and information to assist the community in this task
by including documentation about budget limitations and trade-offs implicit in the selection of levels
of service, including the impact of decisions on agency and road user costs in the longer term.
Part 2 also shows how information from the stakeholder / community consultation process can be
integrated into the objectives of the organisation. Part 2 provides guidance on how Key
Performance Indicators (KPIs), otherwise known as performance measures, should be set to
monitor the effectiveness of the asset management process (the works program) towards
achieving the KPIs.
3.3.2
Part 3 is concerned with the development of asset strategies. These asset strategies translate
organisational objectives into actions linked to defined KPIs. A complete set of strategies consists
of capital investment, infrastructure preservation and road use strategies.
It provides guidance on how to evaluate the strategic fit of investment needs with agency strategic
plans, and how to ensure an equitable allocation of resources where resources are insufficient and
prioritisation is necessary, taking due account of the organisations objectives and the broad
objective of minimising life cycle costs.
However, in keeping with the focus of the guide, which is primarily concerned with the
management and preservation of current physical assets, it introduces those aspects of road use
strategies and capital investment strategies which are essential inputs to effective road asset
management.
Austroads 2009
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3.3.3
Part 4 addresses the program development process, at which point asset strategies are
transformed into defined levels of service and works programs. Part 4 describes the process by
which the type and quality of road-related asset that should be provided in a given set of
operational circumstances (e.g. for a given demand) is defined by an agency.
Each road agency is encouraged to determine its own sets of performance standards, i.e.
combining both quantitative indicators and criteria, based on community consultation, economic
analysis, existing road standards, and budgetary expectations.
Part 4 provides guidance on how intervention criteria may be employed in assessing the current
performance of an existing road-related asset against the target asset performance. It also
explains how such criteria are used to identify performance gaps that can then be addressed by
construction and preservation activities and road use policy interventions.
This then leads on to program development at which point an agency identifies intervention options
to close the asset performance gaps. These intervention options will comprise the total needs
program.
3.3.4
Part 5 provides guidance on the establishment and maintenance of asset inventories, and on the
monitoring of asset performance. It discusses the need for agencies to measure asset
performance against objectives, and therefore is primarily concerned with condition data collection
and performance modelling at a network level. Sub-parts include:
Bridges are covered in Part 6 and other road related assets in Part 7.
3.3.5
Part 8 provides guidance on how to undertake asset valuation, since such information can provide
the asset manager with valuable insights into the long-term management requirements.
It also provides guidance on how to implement an audit process to ensure work activities reflect the
works program and satisfy the asset and organisational strategies (and in turn stakeholder
requirements).
Finally, Part 8 describes approaches to presenting information to external stakeholders and other
customers by means of public reports and other media.
Austroads 2009
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REFERENCES
AASHTO 2002, Transportation asset management guide, American Association of State Highway and
Transportation Officials, Washington DC.
Australian Transport Council 2004, National guidelines for transport system management in Australia, 3
vols., Australian Transport Council, Canberra, ACT.
Austroads 1994, Road Asset Management Guidelines, AP-109/94, Austroads, Sydney, NSW.
Austroads, 2000, Valuation of Road Infrastructure Assets in Australia and New Zealand, by LB Dowling, AP144/00, Austroads, Sydney, NSW.
Austroads 2001, Australian and New Zealand Road System and Road Authorities: National Performance
Indicators 2000, AP-43/01, Austroads, Sydney, NSW.
Austroads 2002a, Integrated Asset Management Guidelines for Road Networks, by R Grove, F Mihai, P
Appleby, M Bishop, K Eckeroth, L Leong, D Radcliffe & P Shepherd, AP-R202/02, Austroads, Sydney,
NSW.
Austroads 2002b, Guidelines for Community Input in Setting Level of Service and Intervention Standards for
Road Networks, R Grove, F Mihai, P Appleby, M Bishop, K Eckeroth, & P Shepherd, AP-R201/02,
Austroads, Sydney, NSW.
Austroads 2004a, Pavement Rehabilitation: A Guide to the Design of Rehabilitation Treatments for Road
Pavements, AP-G78/04, Austroads, Sydney, NSW.
Austroads 2004b, Pavement Design: A Guide to the Structural Design of Road Pavements, AP-G17/04,
Austroads, Sydney, NSW.
Austroads 2006, Maintenance Techniques to Reduce Social and Environmental Impacts, by J McRobert & N
Houghton, AP-R291/06, Austroads, Sydney, NSW.
INGENIUM & IPWEA 2002, International infrastructure management manual, Association of Local
Government Engineering of New Zealand Inc (INGENIUM), Thames, New Zealand, & Institute of
Public Works Engineering Australia, Sydney, NSW.
Kerali, HRG 2000, HDM-4: Highway Development and Management: volume one: overview of HDM-4, World Road
Association (PIARC), Paris.
Martin, TC, Toole, T, & Oliver, JWH 2004, The development of HDM-4 technology road deterioration models
for Australias sealed granular pavements, International Conference on Managing Pavements, 6th,
2004 Brisbane, Australia, Queensland Department of Main Roads, Brisbane, Qld., 19p.
Oliver, JWH 2004, Prediction of the life of sprayed seals and the effect of climate, bitumen durability and
seal size, International Conference on Managing Pavements, 6th, 2004 Brisbane, Australia,
Queensland Department of Main Roads, Brisbane, Qld., 13p.
Prem, H, de Pont, J, Pearson, B & McLean, J 2002, Performance characteristics of the Australian heavy
vehicle fleet, National Road Transport Commission, Melbourne, Vic.
Austroads 2009
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Queensland Department of Main Roads 2002, Roads connecting Queenslanders: a strategic long-term
direction for the Queensland road system and Main Roads, Queensland Department of Main Roads,
Brisbane, Qld.
Queensland Department of Main Roads., Road System and Engineering Group 2005, Traffic and road use
management manual, Queensland Department of Main Roads, Brisbane, Qld.
Queensland Transport & Queensland Department of Main Roads 2000, 4Seeable futures: transport portfolio
scenario-based planning for Queensland Transport and Queensland Department of Main Roads 2000
2025, Queensland Department of Main Roads, Brisbane, Qld.
Robinson, R, Danielson, U, & Snaith, MS 1998, Road maintenance management: concepts and systems,
Macmillan, London.
Standards Australia & Standards New Zealand 1999, Risk management, AS/NZS 4360:1999, Standards
Australia, Strathfield, NSW.
Transit New Zealand 2001, Annual report, 2000/01, Transit New Zealand, Wellington.
TRL Overseas Centre, 1998, Guidelines for the design and operation of road management systems,
overseas road note 15, Transport Research Laboratory, Crowthorne, UK.
Tsolakis, D, Rockliffe, N & Patrick, S 2003, Triple bottom line evaluation of transport proposals, research
report ARR 359, ARRB Transport Research, Vermont South, Vic.
Tsolakis, D, Thoresen, T, 1998, A framework for demonstrating that road performance meets community
expectations, working document WD R98/003, ARRB Transport Research, Vermont South, Vic.
VicRoads 1993, A stitch in time: Victorias road maintenance strategy, VicRoads, Kew, Vic.
VicRoads 2003, Program development guidelines, VicRoads, Road System Management, Kew, Vic.
VicRoads 2004a, VicRoads road management plan, VicRoads, Kew, Vic.
VicRoads 2004b, Annual report, 2003/04, VicRoads, Kew, Vic.
Austroads 2009
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They should be directly relevant to the assessment of current asset condition, to facilitation
of asset management and to prediction of future asset performance.
Their procurement should be affordable and not impose excessive costs on road
management agencies or companies.
The specified criterion associated with each measure should be achievable within the
foreseeable future, and be established with funding availability in mind.
There is no point in measuring things that do not matter, or achieving a degree of accuracy
that is not necessary.
Where multiple factors play a role, as in the case of road crashes, the road authority should
at least aim to monitor rates and trends and include such statistics in annual reports.
Direct measurement and reporting of specific parameters is preferred over the use of
composite indices, as the latter tend to mask the contributions of various factors, making it
difficult to plan and manage corrective actions.
Some authorities also choose to distinguish between management performance measures, and
road condition measures. In the latter case the measures will also vary and typically reflect the
factors considered important to asset management in each jurisdiction. For example, Transit New
Zealand (2001) reports specific distresses, such as excessive rutting or poor skid resistance. In
other circumstances, surfacing age is used as an indicator of the health of a network, having been
associated with the durability of surfacings in different climatic environments (Oliver 2004).
Examples of KRAs and KPIs reported by VicRoads (2004b) and which extend to consider
community and environment indicators for transport infrastructure are shown in Table C1 1
together with published policy objectives and key results areas which are established
organisation-wide.
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Table C1 1: Example asset management KRAs and KPIs for transport infrastructure
Policy objectives
Achieve reductions in road crashes and the cost of road trauma
Assist economic and regional development by improving the effectiveness and efficiency of the road transport system
Develop a more integrated and sustainable road transport system
Minimise the impacts of roads and traffic on the community and the environment
Build effective, equitable and efficient relationships with customers by providing suitable access to services in order to
assess both road system and road agency performance.
Key results areas
Road safety
Road system management
Traffic and transport integration
Registration and licensing
Organisational performance
Financial performance
Example KPIs for road system management
Condition of the network
Proportion of travel on smooth roads
Proportion of network with very rough roads
% of bridges subject to mass limits
% of bridges in very poor structural condition.
Construction and maintenance
Proportion of network resurfaced
Proportion of network rehabilitated
Estimated return on economic investment.
Environmental and community
Number of community consultation plans prepared
Number and type of environmental incidents
Percentage of road network with roadside management plans.
Source: After VicRoads (2004b).
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Limiting the loading on roads and bridges by regulation, legislation and surveillance
Promoting use of alternative routes which possess sufficient capacity
Excessive demand
Comprehensive guidelines for traffic and road use management have been developed in a number
of jurisdictions, e.g. in Queensland (QDMR 2005), and further examples exist of improved
strategies to manage highly-utilised facilities.
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determining the standards to be adopted and how they relate to current regulations and the
observed behaviour and interactions between vehicles and infrastructure
assessing the costs and benefits which would result to vehicle operators and asset
managers, and what trade-offs are acceptable.
Whilst the current regulatory system remains in place, Australian Transport Ministers have
approved a set of 20 standards, comprising 16 safety standards and four infrastructure protection
standards (see details in Prem et al. 2002). These provide an optional alternative to the current
prescriptive standard. Introduction of the PBS is currently the subject of study and review and
agreement. Once implemented, considerable productivity benefits should result.
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Service Levels
The terms service level, or level of service, describe the quality of service provided by the asset
for the benefit of the customers. Road agencies usually define levels of service in terms of the
convenience of travel and the safety performance of the road network. Depending upon demand
or strategic importance, a higher level of service may be required for some assets compared to
others.
For example, ride quality (qualitative) and road roughness (quantitative assessment of ride quality)
are two asset management service level measures. The road operating condition can generally be
defined as smooth, rough or desirable and an agency must decide what standard of ride
quality/roughness is acceptable for specific road classes and/or road use. Most communities
agree that it is appropriate to have a hierarchy of levels of service such that (in this example) roads
with higher demand levels would be maintained to a smoother standard.
Roughness is a prime factor in determining vehicle operating costs and consequently an input to
determining the timing of treatment interventions aimed at minimising total transport costs (see
also WOLCC in Commentary 5). In traffic engineering, the term level of service is used to
describe the operating conditions within a traffic stream, and relates to the congestion performance
or traffic capacity of a road. Road agencies have adopted the term and associated measures as
one component of the quality of service provided by the asset for the benefit of the customers. For
the purpose of the Austroads Guide to Asset Management, levels of service is used in its broader
form. Levels of service enable an agency to:
C4.2
Intervention levels are specified condition parameters (usually limiting values) which, if exceeded,
trigger a maintenance investigation. The process of comparing the existing asset condition with
the desired condition is called gap analysis. However, just because a gap is identified, does not
mean that an action/project must be initiated. Routine maintenance or operational standards are
generally high priority. In other situations, the gap analysis process identifies a portion of the asset
for further investigation using engineering judgment and other organisational considerations (e.g.
budget).
Service levels/intervention levels are established using a process which takes into account:
community views.
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Table C4 1 illustrates the variety of intervention criteria which may be used, and summarises the
contents of a typical set of asset management instructions (in this case called Program
Development Guidelines adapted from VicRoads 2003). The reader should note:
the multiple, integrated solutions which may be necessary to minimise whole of life cycle
costs
Routine maintenance standards are more specific than the performance targets approach taken in
developing infrastructure preservation programs for reasons of safety and to aid traffic use. This is
because they relate to the repair of hazards. Consequently, response times and inspection
frequencies are set according to an assessment of risk, taking into account factors such as road
classification, road type and the volume and type of traffic. An example of this approach is shown
in Table C4 2 based on VicRoads Road Management Plan (VicRoads 2004a).
Table C4 1: Example criteria for various maintenance interventions
Routine maintenance to apply to all roads and be based on published intervention levels (see example structure in Table D 2).
Periodic pavement maintenance to be based on area of network to be treated and available funding. The program is expected to
relate to historical norms with candidates including:
those which possess moderate or severe surface distress (typically > 5% of area affected in a 200 m length)
low skid resistance sites and those of high accident potential, with the remaining sites treated under the road safety program.
Rehabilitation pavement maintenance to address sections with high roughness for road classes A, B or C (NRM > 110 - 120), and
for moderate to high roughness for road class M (NRM > 80-90). Ranking to be based on the simplified formula (see below) and to
be applied in a separate list for rural and urban projects respectively.
Ranking value = EI * D * T * L/C, where
EI =
expected improvement, in NAASRA roughness meter (or NRM) units of counts/km
D
=
deterioration factor, where 1 is normal, 1.5 is normal but with high maintenance costs, 2 is high
T
=
traffic volume up to a maximum of 2000 veh/day rural and 4500 veh/day urban
C
=
unit cost of treatment ($ per sq.m)
L
=
expected treatment life (years).
Major patching and rehabilitation to be considered using the above ranking formula for sections in a very rough state. Distressed
pavements which are not rough but consume significant maintenance resources should be considered separately.
Drainage improvements to be considered as a long-term strategy for reducing pavement deterioration, noting that poor drainage
can increase the rate of deterioration by a factor of between 2 and 3 ( Martin, Toole and Oliver 2004).
WOLCC tool to be used to determine expected improvements and community benefits from undertaking the proposed program.
Shoulder resheeting to be considered where length is in excess of 500 metres to provide safe driving conditions and adequate
support. This does not include sealing of unsealed shoulders.
Repair of pits, trenches and utility structures where this adversely affects the ride or function of the pavement.
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Day-time
Weekly
Monthly
3-monthly
6-monthly
Night-time
6-monthly
6-monthly
6-monthly
Yearly
Yearly
Yearly
Control mechanism
Inspect, rectify or provide
warning
Response code
A
4 hours
24 hours
1 week
1 month
3 months
6 months
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C5.1
Benefits
The evaluation of policies and development of medium to long-term asset plans using whole of life
cycle costing (WOLCC) provides a basis for investment decisions related to long term assets.
WOLCC analysis is fundamental to modern asset management and incorporates triple bottom line
(TBL) objectives (Tsolakis et al. 2003) of:
financial and economic cost implications for agencies and road users
intergenerational equity.
C5.2
Available Tools
Investment tools such as the HDM-4 suite of technology (Kerali 2000) and the Deighton dTIMS
software are widely used in Australia and New Zealand to assist in the analysis process. Simpler
tools are also available which use more approximate, or aggregate models based on the same
knowledge base. The advantage of the HDM-4 style modelling tools is that they enable the
decision maker to incorporate multiple criteria into a formal analysis. Criteria would extend beyond
asset life expectations to include the:
impact on vehicle operating and road user costs, including road crashes
C5.3
Analysis Objectives
Having decided the policy objectives to be pursued, and relevant key performance indicators,
analysis can then be extended to predict likely outcomes of alternative scenarios, for example:
at the component level models can assist in estimating the life of a road surfacing in a
particular locality
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In all cases the purpose of the analysis needs to be clearly stated. Therefore, a clear objective
function, or decision rule, must be employed so that a solution can be chosen from amongst the
alternatives that have been investigated. This may take a variety of forms including the:
1.
2.
minimisation of total agency costs to achieve a desirable level of service for a particular
project, sub-network or network-wide
3.
maximisation of net benefits (to society) under different budget scenarios, the aim being to
minimise total transportation costs.
C5.4
Data Requirements
Where such models are used they require the user to specify:
the basic input data which describes the engineering attributes of the asset, climate,
topography, current and future traffic, works history and the vehicle fleet
the intervention criteria, mix of treatments and costs applicable to each option, or to define a
solution space within which acceptable solutions may lie
an acceptable base case or without investment alternative against which the project
alternatives will be compared.
Using the models, typical engineering scenarios can be investigated and the consequences
determined in terms of road agency costs and road user effects. Economic benefits are computed
in terms of the net economic benefits (as net present value, or NPV) from comparing a do
minimum alternative with a variety of project alternatives. Typical economic indices such as benefit
cost ratios (BCR) or NPV/cost are recommended as inputs to the prioritisation of investment
alternatives.
C5.5
Challenges
comprise internal predictive models which must be well calibrated to local conditions to give
meaningful answers
However, the principle of WOLCC analysis can be incorporated into decision-making in simpler
forms by taking care to ensure capital, improvement and preservation decisions are made in the
knowledge of the long term cost implications.
Most authorities employ a combination of historical practice, simple rules and the more
sophisticated WOLCC methods because no single approach can be guaranteed to produce an
acceptable and realistic outcome.
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It can be difficult to justify investment on an economic basis for low traffic facilities where agency
costs (as illustrated in Figure C5 1) make up a significant proportion of total costs. This is because
the savings in road user costs associated with a higher level of service are not sufficient to offset
the additional costs of provision or maintenance. In practice there are political and social reasons
for providing a base level of access and safety for smaller communities.
Figure C5 1: Typical split between road user and road agency costs versus AADT
C5.6
Asset Creation
Authorities should consider carefully the future maintenance requirements of proposed new
infrastructure before including it in their works program.
The establishment of complementary capital investment planning processes are recommended to
ensure the most appropriate whole of life cycle decisions are made when constructing new assets.
In this case, the asset manager is interested in knowing that asset management principles have
been applied in selecting improvement and expansion investments.
Consideration of maintenance implications at the design stage should, where possible, highlight
those options with maintenance complications or increasing life-cycle costs. Capital investment
decisions should be made in the knowledge that creation of an asset also creates a commitment to
maintain that asset.
Provision must therefore be made for future maintenance to ensure budgets are available to meet
typical business rules for the particular class of infrastructure. Further guidance is available in the
Austroads Guide to Project Evaluation.
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At a high level, these steps mirror the Austroads Integrated Asset Management Process but risk
must be managed within all phases of the asset management process at varying levels of
complexity. The effort used in managing risks should be commensurate with the risk exposure.
Major financial risks and the general comfort and efficiency of road use are addressed through
appropriate infrastructure preservation, road use management and capital investment strategies.
Risk management in a maintenance context is primarily related to the safe use of a roadway and
related assets, and is therefore performed at an operational level.
In deciding how to best manage risk, asset owners and managers are encouraged to adopt the
following simple classification for categorising activities and responses which has been adapted
from INGENIUM & IPWEA (2002):
Must do comprising those activities for which deferment is not an option, with public safety
identified as the topmost priority.
Should do comprising those activities which are required to deliver published desirable
service levels, with the exception of those which fall into the must do category.
Could do comprising those activities which could bring additional community benefits should
sufficient resources exist.
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Whether networks are managed directly by a government agency, under term contracts, or similar
arrangements, a consistent process-based approach involving annual and long-term planning is
essential to reduce and manage risk effectively. Plans should contain a balance of inputs which
consider past experience, or norms, as well as the results of formal modelling using strict
intervention criteria.
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