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Abstract: The concept of asset management has drawn much attention from those responsible for
and interested in civil infrastructure systems. Motivated by rising public expectation and changing
capital allocation requirements, many public agencies and associations in the United States have
begun promoting and coordinating efforts to develop frameworks and decision support systems for
infrastructure asset management. Most efforts are in their infancy, so the opportunity to take account
of the prospects and challenges of development is palpable. Accordingly, this paper briefly reviews
the state of infrastructure asset management developments within several international agencies and
assesses significant obstacles and decision factors. While the technical challenges of developing
cross communication between information system components and platforms are noteworthy, a
principal conclusion of our research to date is that these challenges must be balanced by equal
attention to elements which are salient to construction and analysis of alternative scenarios for
investment and operation. These factors include: (a) identification of key performance and service
indicators, (b) definition of comparative baselines, (c) alignment of operating and financial
management systems with capital programming processes, (d) integration of functional and condition
requirements, (e) consideration of public and private sector roles, and (f) incorporation of flexibility. In
addition, developers must carefully consider the scale and scope of these systems as well as their
institutional implications. Initiatives that neglect these factors are likely to produce decision support
systems for infrastructure asset management that fall short of fulfilling expectations.
Introduction
Numerous studies and publications have cataloged the deterioration of American
infrastructure systems (Choate and Walter, 1981; National Council on Public Works
Improvement, 1988; ASCE, 2001). Regardless of the merit given to various
estimates of need, a prolonged effort to renew and replace components and sub-
systems of infrastructure systems nation-wide is a logical expectation. Further, this
cycle is perpetual; today’s challenges will be replicated by similar challenges in the
future. Essentially, the century old systems in many of America’s urban centers are
approaching the end of their first lifecycle, and similar circumstances are found
worldwide. The future includes second, third and fourth cycles. Identifying system
priorities and allocating scarce capital resources among competing requirements
shall remain a constant challenge.
have begun promoting and coordinating efforts to develop frameworks and decision
support systems for infrastructure asset management. Most efforts, however, are in
their infancy, so the opportunity to take account of the prospects and challenges of
development is palpable. Advances in information technology are making it possible
to integrate disciplinary information systems to support decision-making like never
before. Beyond the obvious technical issues of cross communication between data
and software platforms, however, a number of salient challenges are forthcoming if
asset management is to realize its promise.
The intent of this paper is to explore developing asset management concepts and
practices while incorporating lessons learned from past and ongoing research efforts
at MIT and Columbia University. Over the past several years, the authors have been
engaged in the development of case studies about and decision support systems for
infrastructure. In the course of these efforts, we have identified several challenges
when implementing decision support systems designed to improve capital and
operational planning as well as performance. This paper serves as a forum for: (a)
reviewing U.S. and international experience with infrastructure asset management, in
effect taking a “pulse” of developments worldwide, (b) considering asset
management prospects and challenges, and (c) highlighting critical issues that might
preclude asset management practices from fulfilling expectations.
U.S. Experience
Decision Support Systems for Infrastructure Asset Management: Prospects and Challenges
Garvin, M.J., Hall, R.P. and Miller, J.B.
662
These findings suggest that overcoming institutional challenges will comprise the
majority of the effort necessary to implement such an approach. Development of the
guide continues in the project’s second phase.
In the late 1990’s, the American Public Works Association (APWA) assembled a task
force to study asset management and its implications upon public works
organizations throughout the United States. The task force delivered a report
describing the concept and issues surrounding its development and adoption within
public works agencies in the late summer of 1998. Their definition (also shown in
Table 1) suggests that asset management is more an investment policy than a
management tool since individual systems, such as pavement management systems,
are adequate for managing each class of asset (Danylo and Lemer, 1998). As such,
asset management becomes an integration methodology. In addition, the report
identified legal, financial and accountability issues which motivated the strategies
recommended by the task force to further asset management development and
practice. These strategies included coordinating the interested parties to promote a
common strategy and allocating appropriate resources to insure that the concept is
fully understood and documented. APWA’s Leadership & Management Committee
has assumed responsibility for coordinating further activities in this area, and they
continue to develop concepts and tools that will assist and encourage public works
agencies to embrace asset management practices within their organizations.
1
NCHRP is sponsored by AASHTO, in cooperation with FHWA, and is administered by the
Transportation Research Board. Formed in 1962, its mission is to conduct research in acute problem
areas that affect highway planning, design, construction, operation, and maintenance nationwide.
Decision Support Systems for Infrastructure Asset Management: Prospects and Challenges
Garvin, M.J., Hall, R.P. and Miller, J.B.
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Source Definition
American Public Works Assets management is a methodology to efficiently and equitably
Association Asset allocate resources amongst valid and competing goals and
Management Task Force objectives. An assets management system is more an integrator, a
system that can interact with and interpret the output coming from
many dissimilar systems and provide deciders with reliable and
tested data.
New Zealand National The goal of infrastructure asset management is to meet a required
Asset Management level of service in the most cost-effective way through the creation,
Steering Group and acquisition, maintenance, operation, rehabilitation, and disposal of
Institute of Public Works assets to provide for present and future customers. The key
Engineering of Australia elements of infrastructure asset management are: taking a lifecycle
approach; developing cost-effective management strategies for the
long term; providing a defined level of service and monitoring
performance; managing risks associated with asset failures;
sustainable use of physical resources; continuous improvement in
asset management practices.
Transportation Association Managing highway assets is not a new concept; highway agencies
of Canada have been using pavement, bridge and maintenance management
systems for decades. What sets asset management apart today is
the move to merge single-asset management systems into an
integrated whole. Asset management is a comprehensive process
that allocates funds effectively and efficiently among competing
pavement, structure and infrastructure needs.
International Experience
Transportation Association of Canada
Decision Support Systems for Infrastructure Asset Management: Prospects and Challenges
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In 2000, the New Zealand National Asset Management Steering Group (NAMS)
joined with the Institute of Public Works Engineering of Australia (IPWEA) to release
the International Infrastructure Management Manual which built upon previous
manuals developed by each organization in 1996 and 1994 respectively. The
manual describes its purpose as “to promote best management practices for
infrastructure assets regardless of ownership (public/private sector) and country
location”. It focuses upon four general areas of asset management: (1) basic
concepts, (2) implementation, (3) techniques and (4) information systems. Without
question, the publication provides some of the most comprehensive treatment of the
subject available. Interestingly, the authors differentiate between basic asset
management and advanced asset management. As described, basic asset
management relies primarily upon an asset register, maintenance & resource
management, condition assessment and defined levels of service to establish
alternative treatment options and long-term cash flow predictions. Advanced asset
management goes beyond this to employ predictive modeling, risk management and
optimized decision-making techniques to establish asset lifecycle treatment options
and related long-term cash flow predictions.
Both New Zealand and Australia have become leaders in developing and practicing
asset management. In fact, a 2000 World Bank report described the two countries
as representative of current world best practice (Worley Intl., 2001). The report
identified three conditions that have contributed to New Zealand’s and Australia’s
success. First, legislative reforms requiring prudent and sustainable long-term
financial planning led to explicit accounting standards and reporting requirements.
Second, support systems such as computerized asset registers and decision-making
tools were developed for improving the ability of organizations to quantify long-term
benefits. Finally, regular monitoring of asset management performance has occurred
to insure that the benefits and improvement expected have in fact been achieved.
This brief survey indicates that the interest in this subject is pronounced, and the
organizations highlighted are in varying stages of development and practice. In
addition, a general consensus exists about the concept. While the definitions of
Decision Support Systems for Infrastructure Asset Management: Prospects and Challenges
Garvin, M.J., Hall, R.P. and Miller, J.B.
665
Decision Support Systems for Infrastructure Asset Management: Prospects and Challenges
Garvin, M.J., Hall, R.P. and Miller, J.B.
666
Performance Measurement
Decision Support Systems for Infrastructure Asset Management: Prospects and Challenges
Garvin, M.J., Hall, R.P. and Miller, J.B.
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The problems described above have become the fodder of those willing to shy away
from performance measurement. Recognizing that performance indicators are only
intended to provide a reasonable representation of different aspects of an
infrastructure system can diffuse debates about their adequacy. Independent
analysis and judgment are still required. The most apt analogy for performance
indicators is triage. They serve as a decision-maker's first-line of diagnosis and
suggest areas of strength and weakness. A starting point can be the use of financial
data. Financial information is often the most tangible factor in any decision-making
environment, and it is already collected as part of the annual accounting and
budgeting process. For instance, an organization operating as an enterprise account
can make use of standard financial ratios such as average collection period to
monitor organizational performance. In addition, data drawn from financial
statements have a degree of consistency and reliability that may not be found in
other data sources since the reporting of financial information follows generally
accepted accounting principles. Garvin (2001) effectively applied similar metrics to
characterize large water systems in the United States. At a minimum, such metrics
can be applied until the consistency issues that challenge the use of a broader set of
metrics are, at least partially, resolved.
Decision Support Systems for Infrastructure Asset Management: Prospects and Challenges
Garvin, M.J., Hall, R.P. and Miller, J.B.
668
Debates about infrastructure and the private sector often diverge to increasing the
use of private sector capital or transferring assets into private hands, but these
discussions miss the point. Undoubtedly, a solvent, tax-exempt public agency can
borrow at more competitive rates than a private entity, and the public sector need
not, nor should it, abdicate its oversight of public infrastructure. In fact, the
environment demands better public sector leadership. When constraints are present,
balancing social and economic goals such as equity and efficiency is no simple task,
but to do so requires full consideration of available alternatives and their benefits and
costs. Public agencies need to view the private sector as a partner or a tool to
improve public services; their competencies are developed and honed in competitive
markets, and the private sector is an ally and not an adversary in the struggle to fulfill
the demand for infrastructure services. Integrated facility delivery and service
contracts are two mechanisms that can possibly leverage the competencies of both
sectors.
Very few public owners in the United States have elected to utilize integrated service
contracts for the delivery or upgrade of facilities or O&M contracts for existing
facilities or system-wide operations despite anecdotal and growing empirical
Decision Support Systems for Infrastructure Asset Management: Prospects and Challenges
Garvin, M.J., Hall, R.P. and Miller, J.B.
669
2
The contract includes operation and maintenance of: (1) a city-owned 100 million gallon per day
(MGD) treatment facility and (2) the city's distribution system.
3
See case studies in Miller's Principles of Public and Private Infrastructure Delivery and Case Studies
in Infrastructure Delivery.
Decision Support Systems for Infrastructure Asset Management: Prospects and Challenges
Garvin, M.J., Hall, R.P. and Miller, J.B.
670
Conclusion
Certainly, this paper has raised a number of questions rather than providing many
answers, but we see these questions as critical to the success of infrastructure asset
management. We hope that they might spark dialog and research into important
areas. Challenges to asset management presented in this paper generally fall into
five categories:
• Institutional: defining public & private sector roles and affecting coordination
between or reconfiguration of “stove-pipe” infrastructure divisions
The transition to an asset management posture within public sector enterprises and
agencies has intuitive appeal since its potential to improve investment decisions and
infrastructure performance appears considerable. Perhaps the most concise
argument for asset management is provided below:
Decision Support Systems for Infrastructure Asset Management: Prospects and Challenges
Garvin, M.J., Hall, R.P. and Miller, J.B.
671
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Decision Support Systems for Infrastructure Asset Management: Prospects and Challenges
Garvin, M.J., Hall, R.P. and Miller, J.B.