Chapter 15: Asset Management System In this section, the phrase asset management system refers neither to an organization, a set of procedures, or a logical structure, but to software, that is, a tool designed to help the transportation agency apply an asset management plan. What is an asset management system (AMS)? An AMS is professional software that is used by a transportation agency to apply a rational and efficient approach to asset management. An AMS always has two types of inputs: Data that describe the transportation asset, its components (pavements, bridges, engineering structures, equipment, etc.), its nature and characteristics (drawings, design, construction reports, etc.), its condition (strengths, distresses, etc.) and other attributes that apply to it (traffic, climate, etc.) The rehabilitation, maintenance, and operation scenarios that are considered by the transportation agency, including assumptions about external factors (budget, traffic, climate change, etc.) and their decided rules An AMS helps transportation agencies perform various analyses, run several simulations, test a number of management scenarios, and finally decide which strategies are the most appropriate to meet their objectives (Figure 15.1). Basically, the AMS should meet two requirements: The structure of the AMS should reflect the procedures of the asset management approach described in the previous chapters. Because these procedures are progressively completed from one maturity level to the next one, the AMS should be modular software that can be enhanced by new modules or expanded functions as the transportation agency progresses from one maturity level to the next. Data collection (devices, files, archives) Road database Data and results display Simulation and analysis functions AMS Assumptions on budget, traffic, and climate evolution Decision rules (strategies) Scenarios Figure 15.1 Structure and role of an asset management system An AMS should never force or limit in any way the choices or decisions made by the 110
transportation agency. The AMS should help staff to consider all realistic options and strategies in managing assets in the short, medium and long terms. Making the case for an AMS Applying an asset management approach, particularly for lifecycle planning (see Chapter 8), requires significant computation for data processing and storage, maintenance and investment strategies or scenarios, and graphical display. Such a computation-intensive approach is likely to be more applicable to organizations at the Proficient and Advanced maturity levels, which consider several (technical, economic, social, and environmental) requirements and apply a variety of mathematical and statistical approaches and Bayesian analysis and enable a heuristic approach to asset management. Such methods involve the simulation of a large number of complex scenarios, which may require significant computing power. However, even at the basic maturity level a significant number of operations is required. Furthermore, at all levels of maturity the ability to display the results of the scenarios in clear and understandable route diagrams, tables, and maps is a crucial aspect of asset management that enables it to demonstrate benefits such as efficiency. As a consequence, modern transportation asset management analysis requires computers capable of sophisticated computational analysis. Asset management systems have been in use for at least two decades that support this need. They are not only able to deal with a huge amount of data and analysis scenarios, but can also present the results in visual formats such as GIS. Structure of an AMS Overall structure An asset management system supports the implementation of the asset management framework by performing the following main functions: Storage and display of data (and results) Calculation of KPIs, including structural (e.g., asset preservation) and surface (e.g., safety) indicators, environmental impacts, and asset valuation (The preservation of the assets financial value is an objective of asset management.) Development of the maintenance program and allocation of resources, in the short term Development of condition indicators and modelling of performance, a necessary step to expand the intervention program and resource allocation in the medium and long terms Cost-benefit analysis, which makes it possible for the scenario analysis to take account of the impact of the maintenance interventions Risk analysis, which may be incorporated as a separate or additional module Development of the financial plan Strategy analysis, although this function requires the same tools as the asset performance assessment Each of these functions is developed to a greater or lesser extent depending on the maturity level of the organization implementing the asset management procedures, as described below. 111
Note that although data collection and processing is an important and difficult phase in road asset management, it is often considered as a separate task, either performed with specific devices by contractors (road condition indicators) or resulting from a careful review of an organization s archives. This is discussed in more detail in Chapter 6 of this guide. Structure of an AMS for organizations at a basic maturity level The main functions of an AMS for organizations at a basic maturity level are as follows: Calculation of technical KPIs at a given time, which corresponds to the time when the data were collected (year n). At the basic maturity level, the technical KPIs are mainly structural and surface ratings. Development of maintenance programs (type, priority, and ultimately a list of actions) and allocation of resources based on predefined strategies. Because no deterioration models are involved at this level, medium- and long-term performance and programs cannot be assessed. Accordingly, the outcome consists of an annual (year n+1), biannual (years n+1 and n+2), or at most triennial (years n+1, n+2, and n+3) program. This function is realized in three steps: identification, prioritization, and allocation of maintenance needs (to year 1, 2, or 3). The basic assumption made in this module is that the maintenance and rehabilitation needs defined on the basis of data collected at year n will remain adequate even if they are applied in year n+3, which often is not fully satisfying. Road Database Network condition at year n (Technical Indicators) Performance assessment (KPI, at year n) Scenario (simple) 1 - Maintenance actions identification Strategies (Decision rules) 2 - Maintenance actions prioritization 3 - Maintenance actions allocation (year 1, 2, 3) Programming (Actions at years n+1, eventually n+2 / n+3) Budget Figure 15.2 Structure of an AMS for organizations at a basic maturity level Structure of an AMS for organizations at a proficient maturity level According to the approach developed in this guide, the AMS for organizations at a proficient maturity level should include greater functionality than that for organizations at the basic level. The greater functionality is as follows: 112
Performance assessment: The performance module is expanded to take into account more detailed data and deterioration models and calculate costs and benefits using socioeconomic and environmental KPIs. Including GRC and DRC in the calculation of asset values is one of the supplementary performance indicators. (Refer to Chapter 11 of this guide.) Condition indicator evolution models: Condition indicator evaluation models are calculated and applied. These models mainly include distress evolution models and some physical characteristics evolution models (deflection, texture, skid resistance, etc.). With these models, the AMS can be used to simulate different scenarios in the medium and long terms. The set of condition indicator evolution models includes two types of models: o Natural evolution models (NEMs): These models quantify the variation of condition indicator values over time due to climate and traffic when no intervention is applied. o Intervention effect models (IEMs): The maintenance and rehabilitation interventions obviously have some effects on the condition indicators, which reflect the effects the interventions have on the asset. These effects are specified in the intervention effect models. Figure 15.3 illustrates such models. Figure 15.3 Condition indicator evolution model Note that a performance modeling module involves one or two sub-functions (Figure 15.4): o Minimally, application of condition indicator evolution models (NEM, IEM) to actual data in order to simulate the aging process of the network. This sub-function is necessary to perform medium- and long-term simulations. o Optionally, identification of these condition indicator evolution models from the data collected on the network during previous surveys and stored in the road database. Note that these models can be derived from external studies too, but not as well. 113
Road Database Initial network condition (Technical Indicators at year n) NEM, IEM Condition of network one year later (Simulation Technical Indicators) Performance assessment (Level of Service HLMI 1 ) Maintenance programming (Application of strategies) Core loop Scenario (complex) Strategies (Decision rules) Assumptions about Traffic Environment Budget Network condition at the end of the period (Technical indicators and KPIs) M&R Program over several years Etc. Figure 15.4 Structure of an AMS for organizations at a proficient maturity level Multi-annual maintenance programming: Given the condition of the network in a certain year, the asset management strategies, and the annual budget (which may vary over time), the module can simulate different scenarios over the medium and long terms. Cost-benefit analysis: Basically, CBA balances the total costs of maintenance to prevent asset deterioration (treatment costs, agency costs, extra costs for work areas, costs of negative environmental impacts in the short term, etc.) and the total benefits produced by maintenance (medium- and long-term positive impacts on the economy, society, and the environment) in the same period. This balance has meaning only when calculated based on the lifecycle of the asset components. The lifecycle is the period between two major asset component reconstructions. Performing CBA implies that the previous AMS structure needs to be enlarged to take into account the various impacts of asset management. Different modules should be added to the structure, as shown in Figure 15.4: o Assessment of all costs caused by intervention on the asset, such as the direct works costs, the indirect work costs, the costs of traffic management during the interventions (detours, signs, etc.), the costs to the users during the intervention (extra delays and fuel consumption caused by congestion), etc. Specific models may be required to evaluate these costs, for instance the costs of congestion during the intervention, which depend on the traffic signature, or the costs of the reduction in flow capacity. 114
o Assessment of all benefits resulting from intervention, such as reduced travel times, vehicle operating costs, traffic risk, etc. Again, specific models must be added to the structure illustrated in Figure 15.4 to perform these assessments. Finally, the complete structure is shown in Figure 15.5. Initial network condition Core loop (see Figure 15.4) Scenario Strategies Budget Etc. Objectives Gap Final network condition M&R Program over lifecycle Feedback Asset depreciation Maintenance costs over lifecycle 1 Maintenance benefits over lifecycle 1 Lifecycle costs: C Lifecycle benefits: B Balance: C/B Figure 15.5 Complete structure of CBA The result of the CBA is affected by a number of issues. There may be uncertainties, such as traffic demand and growth, that affect asset performance, particularly as a result of the climatic region. Accordingly, CBA cannot deliver exact and definitive answers. A risk analysis must therefore be conducted to quantify the reliability of these conclusions. Risk analysis: Risk analysis does not need a specific or additional module. It is conducted by iterating the simulation through a number of scenarios according to the structure illustrated in Figure 15.4, with each scenario assigned a specific probability or distribution of probability (of traffic growth, budget reduction, occurrence of an environmental event, modification of regulations or laws, etc.). The realism of the risk considered in the analysis is decided by an experienced user. The results of the different runs are weighted by the probability of the simulated scenario occurring. The strategies that are finally fixed are those that realize the accepted risk for the transportation agency. 115
Financial plan: As with risk analysis, this function does not require a specific module. It is performed by well-organized and coordinated applications of the structure illustrated in Figure 15.4. Two sets of applications are required to build a rational and consistent financial plan: o Simulation of past strategies, in which the AMS is used to find the strategy that is consistent with the recent evolution of the network condition, given the external factors affecting the network (traffic variation, climate events, geologic events, etc.) and the budget. o Selection of future budget and strategies and, consequently, simulation of realistic scenarios, which will ultimately provide information on the best schema of budget allocation. Structure of an AMS for organizations at an advanced maturity level An AMS for organizations at this maturity level requires at least three additional functions: Investment strategies: Beyond the maintenance policy, the most significant problem that any transportation agency deals with includes evaluating how much of the budget should be invested in the road to secure its value and services. Using the system illustrated in Figure 15.5 may be sufficient to answer this question. No additional software module is required to perform this function. Asset management plan: Once the CBA and risk analysis are performed with the help of the system illustrated in Figure 15.5, the asset management plan can be finalized. No additional software module is required to perform this function. Performance monitoring: Once the annual maintenance program has been carried out on the whole asset, the KPIs can be recalculated either from collecting new on-site data for the whole or a part of the network or from applying condition indicator evolution models. The Performance Modelling module is available to perform this updating of the overall assessment of the asset. No additional software module is required to perform this function. Requirements for an AMS Table 15.1 summarizes the requirements applicable to defining an AMS. 116
Table 15.1 Summary of requirements for an AMS Maturity level Requirements Mandatory Optional General Neutrality: The AMS should never force or limit in any way the choice or decision process defined by the transportation agency. Adaptability: The AMS should adapt to the maturity level of the asset management process adopted by the transportation agency through the adjunction of new modules according to the agency s needs. Reliability: The AMS should propose decisions that are fully consistent with the decision rules encoded in the software by the transportation agency. Transparency: The AMS user should be able to check and track all decisions proposed by the AMS and identify the rules that trigger each decision. Basic Road database containing the following: o Route diagram displays o Simple statistics Performance assessment module (technical KPIs) Annual (or biannual or triennial) programming module Proficient Module to apply the distress evolution models to aging infrastructures Expanded performance assessment module (socioeconomic KPIs) Multi-annual (> 3 years) programming module Basic CBA module, which requires the following: o Basic vehicle operating costs models o Asset valuation models Basic risk analysis, which requires probability distribution for traffic growth, budget evolution, environmental events, etc. Map displays Elaborated statistics Module to identify distress evolution models from a database Advanced CBA, which requires the following: o Travel time models o o o o Road safety models Advanced vehicle operating costs models Work site traffic flow models Etc. Advanced The AMS does not require more functions than for the proficient level, but it is more systematically used for investment strategy analysis, management plan development, and long-term performance monitoring. The AMS may involve some automation to perform optimization processes, given objectives and constrains Note that the same AMS should be applicable for organizations at the basic to the advanced maturity level, which means that it should potentially meet all the requirements. However, the operating system needs only to meet the requirements applicable to the maturity level of the asset management process at a given time. 117
AMS business plan Buying an AMS may be expensive. Without up-to-date data or trained users, the AMS will be of no help for the transportation agency. Therefore, the implementation of an AMS in a transportation agency should be supported by a complete business plan that sets out the investment required and the benefits. Importantly, the organization must also be able to fund a data collection program for the lifecycle of the system. Without this, the AMS will not be sustainable. The system should consist of a road database plus a set of data interpretation modules, as described above. The cost of initial licenses, generally a lump sum, must be funded. Sometimes the database display functions are below the level specified by the transportation agency. In that case, the agency must complete the database with GIS, and the cost of the license(s) must be added to the lump sum. Moreover, in most cases the proposed software includes a maintenance option, which implies a recurrent expense that has to be funded as well. The system is run using inventory and condition data. These data must be sufficient, reliable, and up to date. A significant amount of work is required to initialize the process (mainly gathering inventory data) and collect condition data recurrently (possibly annually) on site. For this periodic collection, different schemas exist. For instance, some transportation agencies collect data on the whole network every n years, while others collect data on a part (1/N) of their network every year. Some transportation agencies employ their own staff to collect data, while some others contract the data surveys to specialized companies. In all cases, the implementation of an AMS requires an initial investment in the collection of inventory and condition data, plus a recurrent budget for collecting updated data. This investment must be considered in the business plan. The most important effort when installing an AMS involves the configuration of the analysis modules. From this point of view, each AMS is different. The context (climate, traffic, road construction, road maintenance) varies from one transportation agency to the next. Thus, the professional expertise, experience, and even culture are different from one country to the next. The configuration of the AMS involves collecting the local expertise, experience, and culture to formalize these factors and incorporate them into the software. This may require a significant amount of time, but the success of the installation and the later application of the system strongly depend on the quality of this configuration. The configuration phase can gradually turn into a training phase for the future users of the system. Subsequently and periodically, some additional training can be proposed to upgrade the AMS users skills. Therefore, the decision to implement an AMS must always be supported by the production of a business plan that will identify the sources of the initial and recurrent funding. Table 15.2 illustrates the relative weight of the expenses. 118
Table 15.2 Relative weights of AMS implementation expenses Phase Initial investment Recurrent expenses System (software) installation Data collection System configuration Medium: Initial licenses High: Inventory data and initial condition data collection Medium: Initial configuration of the whole system, which requires the involvement of the transportation agency s experts Low (no GIS): Maintenance Medium (GIS): Maintenance Medium: Periodic data updating Very low: Only occasional modifications or complementary modules added User training Medium: Initial training for the different users Low: Upgrading users skills 119