CE 861 - Pavement Rehabilitation

& Management

Lecture 1
Asset Management Concepts
Dr. Muhammad Irfan
Military College of Engineering
National University of Sciences & Technology
March 8th , 2019
 Today’s conversation …
Introduction to this Lecture
The Rationale for Asset Management
Perspectives of Asset Management Practice
Anticipated Benefits of Asset Management
Component Systems of Asset Management
The Common Elements of Asset Mgmt

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 Introduction
Highways -- the most valuable government-
owned asset
- total value (estimated) of all US highway assets
$1.75 trillion ($1,750,000,000,000),
- average annual $ for hwy expansion and
preservation: $70 billion

Even marginal savings due to improved

practices could be significant in terms of
absolute $! 3
 Introduction (continued)
 Land transport (roads, rail) expected to stay for
next 100’s of years at least

 Highways still essential for movement of people,

goods, and services (commuting, recreation,
shipping goods, house delivery of services, etc.).

 Highway mobility is critical to quality of life, well-

being, economic progress, social welfare, national
defense, domestic security, and emergency
preparedness.
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 Introduction (continued)
Definitions of “Highway Asset Management”

A programmed approach (that

combines engineering, mathematics,
business, and economic theory) to
restore, preserve and operate
physical assets to meet agency
goals.
New York State DOT
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 Introduction (continued)
Definitions of “Highway Asset Management”

A systematic process (incorporating

engineering, business, and
economics) to maintain, upgrade, and
operate physical assets cost-
effectively, thus facilitating organized
and logical decision-making.
FHWA
(Federal Highway Administration)
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Why Asset
Management?

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 General Rationale for Asset Management

- huge expanse of highway assets, and the dominant share of

government budgets they command for expansion and
preservation ,
- ever increasing commercial and personal travel demand,
- higher user expectations of levels of service,
- increased stakeholder participation in highway decision-
making,
- greater need for transparency and accountability in highway
systems evaluation,
- limited or uncertain funding for preservation and expansion.
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Perspectives of Asset
Management

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The Sinha-Fwa Perspective

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 The Sinha-Fwa Perspective (continued)

1st dimension: Highway Facility /Asset Type

A highway system involves several different physical
facilities:
- pavements
- bridges
- drainage structures
- traffic control devices,
- roadside elements, etc.
Each facility is associated with one or more
performance measures.
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The Sinha-Fwa Perspectives (continued)

2nd Dimension: Operational Functions

Asset Planning

Asset Design

Asset Construction

Asset Operations

Asset Condition Monitoring

Asset Preservation
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 Phases of Asset Development
Life-cycle

Asset Terminal Phases Needs Assessment,

(Demolition, Failure, etc.) Goals Identification et

Asset Asset
Maintenance/ Planning
Tasks at each Phase
Rehabilitation Description,
Analysis,
Optimization and Asset
Evaluation of
Alternative Practices
Design
Asset
Monitoring
Asset Installation
Construction
Asset Operations
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 The Sinha-Fwa Perspective (continued)

3rd Dimension – System Objectives

- are specified levels of selected performance

indicators relating to facility usage or condition
- are derived from perspectives and concerns of
stakeholders (highway agency, road users, and the
community),
- Examples
- agency: asset condition, remaining service life,
- road-user: delay, safety, convenience
- community: noise, air quality, ecology, etc.
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 The “Management Levels” Perspective

Asset management is practiced at two possible levels

 Network Level (also called system level or program level)
 Project Level (also called facility level)

Deserving projects are

Network-Level
selected for given budgetary
System-wide Management
& performance constraints Has Budgetary Constraints

Select Deserving Projects

Project-Level
Decision of optimal life-
Project Focused Management
cycle profile is carried
Typically No Budgetary Constraint
over to network-level
Evaluate and Select M&R Activity Profile over Life-cycle
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 Network Level
 System-wide management
 Establishes priorities for various preservation projects
 Determines the optimal use of limited funds
 Selects optimum maint. policies for the entire network
 Assesses network-level impacts of alternative asset
preservation policies
 Allows assessment of trade-offs at a network level
 Advantage: Birds-eye view of assets under your
control
 Disadvantage: Utilizes aggregate data ; Does not
always consider all factors associated with asset
preservation at the project level
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 Network Level
 System-wide management
 Establishes priorities for various preservation projects
 Determines the optimal use of limited funds
 Selects optimum maint. policies for the entire network
 Assesses network-level impacts of alternative asset
preservation policies
 Allows assessment of trade-offs at a network level
 Advantage: Birds-eye view of assets under your
control
 Disadvantage: Utilizes aggregate data ; Does not
always consider all factors associated with asset
preservation at the project level
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 Project Level

 Selection/evaluation of preservation policies for a

specific asset
 Project-level models are typically comprehensive,
dealing with technical concerns and required details
 Example: FHWA’s LCCA package for pavement
design procedures conducts life-cycle costs analysis at
a project level
 Common task is to select preservation strategies that
provide an acceptable level of service to the user over a
given period of time at a minimum overall cost
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Anticipated Benefits
of Asset Management

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 Anticipated Benefits of Asset Management

Enhances transparency of highway decisions

Facilitates incorporation of multiple stakeholder concerns
Enhances inter-agency and intra-agency
communication
Enables project selection among different asset types
Facilitates analysis of trade-offs between …
- any two performance measures
- performance thresholds and budget needs
- capital improvement and maintenance
Risk management (can help protect agency in tort liability cases involving
highway assets)
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Components of Asset
Management
(systems that comprise an Asset Mgmt System)

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 Components Systems of Asset Mgmt

For Physical Assets

Pavement management system
Bridge management system
Traffic infrastructure management system
Safety hardware management system
Drainage assets management system
Mobility hardware management system, etc.

For Asset Operations

Safety management system
Congestion management system, etc.
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 Components Systems of Asset Management

Pavement Bridge Safety Congestion Other

Management Management Management Management Management
System System System System Systems
(PMS) (BMS) (SMS) (CMS)

ASSET PROGRAM “CANDIDATE POOL”

PMS BMS SMS CMS “Other”

Projects Projects Projects Projects Projects

Optimal decision-making based on multiple performance measures

ASSET PROGRAM or
“KNAPSACK”
This is the Optimal Solution 23
Common Elements of
Asset Management

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 Common Elements of Asset Management

“Common Elements” refers to the tasks that should

be carried out for each component system
1. 2. 3. 4. 5. 6. 7. 8.
Inventory Valuation Def. of Data Perf. Preservation Needs Prioritization
Goals Collection Prediction Treatment Assessment &
and Mgmt Evaluation (Phy. & Fin.) Programming
(Ben. & Costs) ( PL & NL)

PM √ √ √ √ √ √ √ √
S
B √ √ √ √ √ √ √ √
MS
C √ √ √ √ √ √ √ √
MS
SM √ √ √ √ √ √ √ √ 25
 Common Elements of Asset Management

1. Establish your asset inventory

2. Carry out valuation of your assets
3. Define your asset goals
4. Collect and manage your asset data
5. Develop performance prediction models to monitor the
condition of your asset
6. Identify and evaluate preservation treatment options (on basis
of treatment benefits and costs)
7. Assess your asset network deficiencies and thus estimate
physical and financial needs
8. Carry out prioritization and programming of your asset
preservation projects 26