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Emerald - Jqme - Jqme634265 198..212 PDF
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JQME
26,2 Strategic cost modelling
and optimisation for highway
asset maintenance
198 Kong Fah Tee and Ejiroghene Ekpiwhre
Faculty of Engineering and Science, University of Greenwich, London, UK
Received 30 December 2016
Accepted 11 August 2019
Abstract
Purpose – The purpose of this paper is to propose and confer a strategic cost model as a concept for good
decision making for highway asset treatment in the transport industry.
Design/methodology/approach – The paper is based on asset performance condition and treatment
renewals using a five-point performance for developing prospective treatment strategies. The strategic cost
model is presented in the similitude of picturesque and its outcomes via an exploratory data analysis.
Findings – The results articulate the best maintenance plan for the forthcoming and future years. The
strategic cost model uses the combination of the current condition band, the sample area and likely treatment
cost for proposing the optimal treatment solution based on consideration of desired treatment level.
Practical implications – The strategic cost model is suitable for outlining the asset performance condition,
treatment renewals and analytical cost optimisation. The formulated analytical cost model and developed
prospective strategies enable good decision making, long-term contract negotiations and whole life cost
maintenance and management.
Originality/value – Embracing eminent performance condition from the research area of lifecycle planning
and deterioration models of a physical asset, a prospective cost strategy for asset maintenance is proposed in
the study. The resultant treatment strategies using the analytical approach portray the ability that enables
the adaptation of expected outcomes.
Keywords Asset maintenance, Carriageway, Condition bands, Performance condition,
Treatment renewals, Treatment transition
Paper type Research paper
Introduction
The carriageway system is well-thought-out as treatable assets because of their defects and
failures which are repairable (Ekpiwhre et al., 2016). The condition of the current state of these
treatable assets is the base unit for forecasting and implementing their desired maintenance.
A study in the estimation of infrastructure transition probabilities from condition rating data
has proven that information on current and future infrastructure conditions are essential for
maintenance and rehabilitation decision making (Madanat et al., 1995; Tee and Li, 2011).
Maintenance, which is a key function for sustaining long-term profitability of assets by
organisations, is defined as a combination of all actions with intent to retain or restore the asset
to its original state or a state where it can perform its required function. Due to a paradigm shift
in core maintenance, maintenance performance measurement has gained great attention from
practitioners and researchers in recent years (Parida and Kumar, 2006; Khan et al., 2013).
Performance measurement forms the basis for considering where treatments and most
pertinent for maintenance considerations. Performance measurements, with treatment
transition, are also used to develop cost models because of the high probability that
performance conditions and treatment renewals actions portray the treatable asset, which
constitutes for the forthcoming period.
These attributes have gained importance because asset owners and managers are
Journal of Quality in Maintenance
Engineering interested in knowing the relationship between the current state of their asset and the output
Vol. 26 No. 2, 2020
pp. 198-212
of the maintenance process. Recent research findings portray that organisations managed
© Emerald Publishing Limited using integrated performance measurements systems outperform and have superior
1355-2511
DOI 10.1108/JQME-12-2016-0084 stock prices than those where performance measures are not in place (Parida et al., 2015).
The likelihood of optimal performance is the function of the previous state (before treatment), Highway asset
the treatment type and treatment cost in obtaining its future state (after treatment). maintenance
In maintaining safety and achieving an optimal state, carriageway surface could be replaced
extensively, moderately or through light preventive maintenance works, depending on its
current state (Taylor, 2010). Treatment strategies that could bring the asset back to the start
of initial condition or better than its current state are often-wished-for when considering
maintenance plans for the treatable asset. Asset owners and providers are under immense 199
pressure to maintain an adequate and often improved level of service and performance despite
a shortage of funding. Their success is determined by their ability to reduce the level of
expenditure without taking on additional risk or adversely affecting the performance of the
asset over the asset lifecycle. Therefore, cost estimates are vital as an alternative strategy to
benchmark the dwelling funding for highway asset maintenance in consideration of capital
investment and maintenance plans.
Tajadod et al. (2016) utilised and compared multiple-criteria decision-making approaches to
develop the best maintenance policy. Rastegari and Mobin (2016) used three decision-making
tools including clustering, Technique for Order Preference by Similarity to Ideal Solution, and
traditional approaches to make the most suitable maintenance decision when the maintenance
system, is considered in relation to repair cost, downtime and breakdown frequency.
In another wok, Rastegari et al. (2017) proposed the application of vibration analysis in
maintenance decision making of the machining tools by introducing condition-based
maintenance for planning. This helps to prevent failure by solving anticipated as well as
controlling the accuracy of the machining operations.
Markov models are characterised by its uniqueness of been able to determine the end of
life of a system not by their actions but regarding conditions for which it is a different
perspective from the usual regression models used for estimating life expectancy
(Woempner, 1993; Fang et al., 2016; Zhang et al., 2017). One of the simplest possible ways to
computing life expectancy is to compute the average age of all demolished assets in a data
set. Unfortunately, data issues may make this method impractical or inaccurate in many
cases. In exchange for accepting a few simplifying assumptions, the Markov model avoids a
great many of the data quality and censoring problems that plague regression model.
The Markov chain model is often compliant with conditions rating capabilities when the
conditions are required to be defined in two states namely failed and not failed state. A failed
state has been the worst of the conditions defined and not failed as the stages that are not in
the failed state category. Markov model is memoryless because they have the probability of
constantly jumping from one state to another. Because of the memoryless characteristic, a
Markov deterioration model can be characterised as a prediction model where the Markov
transition probability matrix was utilised in populating future condition forecast. It is
suggested by Thompson et al. (2012) that an asset that is entirely in state 1, and repeatedly
multiplies by the transition probability matrix until the fraction in the failed state, finally
reaches 50 per cent. Doing this would simulate the years of the asset’s life until half of them
have failed, thus giving an estimate of the typical median life expectancy of the asset.
The use of optimisation methods helps in achieving the optimal resolution by the
proposed goals (Khan and Tee, 2016; Tee et al., 2014). Optimisation brings benefits such as
reducing the cost to maintain a steady state condition, thereby increasing the overall value.
Multiyear network planning and programming with the prospect to improve the total system
towards a defined performance level is achievable by strategic maintenance optimisation.
The optimisation approach defines the maintenance scheduling techniques categorised as
analytical or simulative methods. Analytical support methods use mathematically based
equations in expressing the optimisation problems and solution. The simulative maintenance
method identifies the optimal maintenance strategy by evaluating different scenarios, thereby
portraying its possible consequences. Simulative methods have gained much acceptance in
JQME literature as high-speed computers having efficient exploratory optimisation techniques with
26,2 inbuilt optimisation suites are acceptable in use for asset maintenance and management
(Remenyte-Prescott and Andrews, 2013; Tee and Khan, 2012).
The drive for highway infrastructure maintenance is to ensure the continuous availability
of highway infrastructure during operating times as well as exceeding the life expectancy of
the assets. The Markov chain model and strategic cost optimisation, when applied individually
200 or combined as first proposed in this paper, can aid highway assets owners to surpass assets
life expectancy as a network with an optimised decision-making process gained from
knowledge of the former asset state, current condition in projecting the future conditions and
related cost. The paper which aims to support decision making for determining an optimal
intervention type, as well as a selection of the best alternatives by asset managers, investigates
the variables (performance condition and treatment renewal) that affect an optimal steady
state of the road network. The cost optimisation results obtained for the strategic deterioration
model using the analytically formulated approach portrays the best optimal value which can
be altered as desired is obtainable depending on the current state of treatment intervention,
expected performance level and the anticipated forthcoming performance condition.
The knowledge of the way the assets deteriorate over time is expressed by the changes in
performance conditions which help reveal how the degradation would affect the maintenance
and rehabilitation cost and the risk to the users. These insights are very helpful to asset
owners, managers and highway engineers in their maintenance decision-making process.
The research which uses a carriageway as a case study application is presented and
structured in the following pattern: background of the study and an introduction to the
five-point condition band, discussion on the performance condition, its attributes and
analysis, the treatment renewals, attributes and analysis, an analytic cost optimisation
approach, introducing a strategic cost formulation and ten prospective strategies are
presented and discussed. The paper finishes with a conclusion on the importance and effect
of cost modelling in new, forthcoming and future budgeting and expenditure.
Background
A treatable system, also known as a repairable system as defined by Ascher and Feingold
(1984), is one which after failing to perform one or more of its functions satisfactory can be
restored to entirely satisfactory performance (Fang et al., 2013, 2014). The restoration can be
by ways and means other than replacement of the whole system. Repairable systems are often
classed into three categories namely minimal repair, normal repair and perfect repair based on
the outcome on its restoration level. The most common used models for the failure process of
repairable systems are: renewal process ~ perfect/maximal repair; generalised renewal process
(correction and rejuvenation)-normal/partial repair; and imperfect/minimal repair (Percy and
Alkali., 2007; Wu and Clements-croome, 2005). Maintenance of deteriorating carriageway
system can be a great challenge since their process of degradation portrays unpredictable
random failures occurring from traffic loads on the carriageway and effect of weather. These
uncertainties often lead to typical questions when maintenance is deliberated such as: what is
the best maintenance alternative? The frequency of maintenance; and what level of
deterioration is acceptable before maintenance is considered? (Carnahan et al., 1987).
Although most treatments intend to bring the asset to a renewed state known as the
optimal level, the maintenance action often leaves them at a steady state or worse than before.
The Automated Condition Survey, named SCANNER, has gained much influence for use in
the UK. SCANNER survey provides a network-wide condition assessment of the local road
network using survey vehicles that travel at traffic speed. The SCANNER survey measures
the shape of the road surface using laser sensors and digital cameras. The associated road
condition of the SCANNER survey analysis uses a three-point road condition indicator,
namely, 1 – green, 2 – amber and 3 – red. This classification is based upon the magnitude of its
defect types such as ride quality (LV3 and LV10), surface texture (LLTX), cracking (LTRC) Highway asset
and rut depth (LRRT). Figure 1 portrays a SCANNER survey scaling for road condition maintenance
indicator for LV3. Inspection ratings are often used in classifying asset conditions; these
ratings are discrete ordinal measurements, often representing a relative order obtained by
discretizing its continuous performance scale (Carnahan et al., 1987; Madanat et al., 1995).
This paper uses a five-point rating approach to illustrate performance conditions in
proposing the ten prospective treatment strategies for developing the analytical cost model. 201
The five-point approach informs the level of degradation of the current state proportion of
the system. The understanding of the performance condition is vital for effective application
and grading of the asset deficiencies. This includes identifying areas of the asset that is
highly affected by defects leading to higher risk of failure requiring the major cost to either
restore or repair the assets. Several integrated carriageway management systems have
deployed the use of condition states for simplicity and practicability for effectiveness in
integrating both carriageway deterioration rates and improvement rates resulting from
maintenance and rehabilitation actions into a single entity for effective optimisation (Abaza
et al., 2004). As the asset is ageing, they require an ever-increasing amount of investment for
their upgrade and maintenance in maintaining the designed performance level. Aligning
asset performance to condition bands enables the characterisation of the asset all through
the various states of its long life and complex deterioration. The knowledge of the way the
assets deteriorate over time is expressed by the changes in performance conditions which
help reveal how the degradation would affect the maintenance and rehabilitation cost and
the risk to the users.
100
Score
Figure 1.
4 mm2 10 mm2 SCANNER survey
condition rating
LV3
JQME (1~failed and 8~excellent) (Carnahan et al., 1987; Madanat et al., 1995). The five-band condition
26,2 utilised in this study constitutes the proportion of the asset performance state.
The description of the status groups is defined and expressed in Table I.
This boundary is the assumptions that the research will be based upon when discussing
the structural health monitoring of the asset both from the performance condition and the
treatment renewal analysis. The performance state summary describes the expression of the
202 condition band based on the performance, reliability and safety of the state of the asset.
The five-point performance condition band covers the asset at the optimal level very good
(VG) as well as a state of severe deficiency very poor (VP). The five-point performance
groups are coded as follows: 1 – very good (T1), 2 – good (T2), 3 – fair (T3), 4 – poor (T4) and
5 – very poor (T5).
Very good (T1) Pavement is sound, functioning properly, and having no deficiency. Its performance or
reliability is indicated as designed
Good (T2) Pavement member is beginning to show signs of deficiency. They are sound with no
impact on performance or reliability
Fair (T3) Deficiency has advanced. Although members still function as intended; unabated wear
will lead to the next condition state
Table I. Poor (T4) Deficiency has advanced to the point that function may be impaired. The asset is not
Description of serving its intended function, reliability and safety to road users
condition band Very poor (T5) Deficiency has advanced to the point that the member no longer serves its intended
performance function and safety to road users
T4-6
T4-5
Figure 2. T3-3
Treatment
T5-8 T5-9
intervention strategies T5-10
Cost modelling application Highway asset
The analysis illustrates the use of cost modelling by means of carriageway records and maintenance
performance condition results. The results are developed from SCANNER survey condition
data obtain from a UK road survey. The investigation conducted aims to demonstrate the use
of cost modelling on roadway asset. The study considers treatment transition alternatives for
strategic cost optimisation. The pavement data employed in the analysis are from Transport
for London road network. A flowchart for cost modelling of roadway assets is presented in 203
Figure 3. The proposed strategic model accesses the asset on a yearly cycle in determining the
forthcoming category from a known current state condition bands. The strategic model
displays the revolution when treatment intervention is introduced or not. The sections address
the performance condition, the treatment effect and cost and the analytical cost optimisation.
The procedure, as shown in the strategic model in Figure 3, displays the trail of the strategic
model to enable assets owners to gain understanding on when best to carry out treatment for
their asset. The performance condition requires variables from the current condition of the
asset and the utilised performance transition in computing its forthcoming state. Table II
describes the definition of the strategic model variable in Figure 3 for ease of reference.
Performance condition
The asset performance condition is classified using a five-point band, namely, 1 – very good,
2 – good, 3 – fair, 4 – poor and 5 – very poor. The condition band is the starting point
(current year) for subsequent planning for the network. The current situation performance
status and performance transition are introduced for the current state and performance
change for populating the untreated forthcoming year.
Starting point
Performance
Budget condition
renewals
Current
state
Treated Untreated
Treatment Performance
transition transition
Forthcoming
state
Treatment
renewals
Figure 3.
Flowchart for cost
Forthcoming modelling of
category roadway assets
JQME i Budget renewals: the annual budget figure needed for each of the treatment types for various assets
26,2 ii Current state: the state at which the asset represents before modelled for a forthcoming state
iii Condition band: the categories of the asset condition being modelled ranging from very good (VG) to very
poor (VP)
iv Forthcoming state: the projected state from the current condition with view of treated or untreated quantity
v Performance condition: the forthcoming condition of the current state having no treatment action on asset
vi Performance transition: the transition probability matrix in a deterioration context
204 vii Treated quantity: the portion of an asset that is undergoing treatment intervention during the
modelling revolution
Table II. viii Treatment renewals: the forthcoming condition of the current state having treatment action on asset
Definition of strategic ix Treatment transition: the transition probability matrix in an improvement context
model variable x Untreated quantity: no maintenance work conducted within the modelling period
Current state
The estimation of current state is imperative as it represents the definition of the asset condition
used describing the condition bands (Dean et al., 2012). Table III presents the percentage
distribution developed expressing the current situation composition. The quantification
indicates the inventory of the carriageway samples used for the analysis and the expression of
the current state.
Performance transition
In the simulation of the untreated forthcoming condition states, transition probability from
two consecutive inspection periods having no maintenance intervention is essential
(Ortiz-garcía et al., 2006; Wellalage et al., 2014). The transition probability which has linear
characteristics is considered most appropriate for setting up any new treatment intervention
regime and is used in the analysis. The linear transition being an undeviating transition
matrix replicates its transition probability from a higher state to a lower state in their
deterioration pattern, as shown in Table IV. The row of the performance transition
continuously sums up to 100 per cent. Further information on developing transition
matrices is accessible via lifecycle planning toolkit incorporating default carriageway
deterioration models by the Highway Maintenance Efficiency Programme (HMEP, 2012b).
where FS is the forthcoming state, CS is the current state and PT is the performance
transition.
The forthcoming state, which is the resultant of the current state condition band and the
205
performance transition having no treatment intervention for a one year cycle, is expressed
in Table V displaying their % appropriation of its current state and performance transition.
The forthcoming resultant state as computed for the untreated quantity is presented in
Table VI. The resultant condition shows signs of decreases as expected but a trend that is
portraying continuous decline. The forthcoming state, when analysed with consideration
of the current situation, portrays a deterioration decrease in the VG condition band
(CS~85.66 per cent declined to FS~62.19 per cent). The others condition bands depict increased
with G (CS~13.37 per cent amplified to FS~30.52 per cent), F (CS~0.97 per cent improved to
FS~62.19 per cent) as well as P and VP. The increase in the forthcoming state, as depicted in
the bar chart in Figure 4, epitomises the change from the current state to its forthcoming state.
Treatment renewals
Treatment of carriageway can be classified into several treatment types (Dean et al., 2012).
In this analysis, the assumption accommodates four treatment types, namely, surface
dressing, moderate overlay, deep inlay and reconstruction. The treatment effect and cost
variable required for the expected performance condition after treatment intervention can be
obtained using the following:
• treatment unit cost;
• treatment effect of expected of forthcoming state; and
• area of current state for treatment.
Condition band
Treatment types Cost £/m2 VG G F P VP
Dressing 8.5 – VG G F P
Table VII. Overlay 25 – – VG G F
Effect of treatment Inlay 42 – – – VG G
types and cost Reconstruct 60 – – – – VG
Treatment transition
Although it is not economical to carry out treatment yearly, planned treatment intervention
always aims to bring the asset to a state of as good as new. Table VIII describes the likely
scenarios of treatment type %, recommended for the carriageway layer to improve its
transition to an optimal level. For example, the asset in a (VP) condition requires a full
reconstruction. Such treatment requires 100 per cent wearing course, 100 per cent binder
course and 100 per cent base course to transit the asset to a (VG) condition. However, in a
situation when the asset is at a poor (P) or fair (F) state, it would require treatment repair
level of 100 per cent wearing course and 100 per cent binder course, a 30 and 15 per cent
base course is necessary, respectively.
Band VG G F P VP
Repair level – Surface dressing (%) Moderate overlay (%) Deep inlay (%) Reconstruct (%)
TI ¼ C b As T c ; (2)
208 where Cb is the current condition band (N), As is the area of the sample (m2) and Tc is the cost
of treatment (£/m2).
The individual ranking of the condition band that the asset currently resides is
(e.g. VG~1, G~2, F~3, P~4 and VP~5). For example, if an asset at VP state requires an
upgrade to VG, the treatment strategy of reconstruction is considered as expressed in
scenario T5-10. Equation (2) is utilised to obtain the estimation analytically against other
scenarios, as presented in Table X. This is helpful in deriving the prospective strategies for
the cost of maintenance of the forthcoming year. In using the analytically formulated
approach, the best optimal value is obtained and could be altered as desired, as it depends
on the variables: current state for treatment intervention; the expected performance level;
and the anticipated forthcoming performance condition.
T4-6
T5-8
T4-5
T3-3
T5-7
T4-4
T3-2
T2-1
0 Figure 5.
Condition transition
Dressing Overlay Inlay Reconstruct from current to
forthcoming
Treatment repair levels
Band
Repair type G F P VP
Conclusions
Cost effective decisions that can help manage a high level of investment is the aspiration for
every asset owner. Sound cost and resource decision making by asset managers is essential
for the sustainability of the highway network. Better highway investment decisions and
choices can be decided from knowledge generated from the strategic cost model. The
strategic model application enables asset managers to consider investments that require
higher initial investment but ought to yield lower cost and risks and higher performance
over the asset life cycle. By considering the various cost scenarios and strategies, it is
possible to select an ideal price to renew the system to an optimal steady state. Cost
estimations and effective planning are necessary for a sustainable highway network. The
evaluations are useful in the determination of future budget allocation and prioritisation as
presented using the strategic cost model. The cost model and others developed in literature
are helpful in making a strategic-level planning decision. This significant advantage of the
strategic cost optimisation model is its benefit to asset managers. The strategic model gives
asset owners the insight of the implication of the several likely scenarios. The approach
depicts the scenarios that each repair level action can have on the future performance and
upcoming asset maintenance. On the other hand, the cost optimisation approach helps to
investigate current and forthcoming funding required to define a level of regular service and
ideal performance condition practically. Moreover, the whole life cost of the assets is
minimised as well as preserved in a more efficient way using an analytical cost optimised
approach due to the known identified scenarios of funding required.
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Corresponding author
Kong Fah Tee can be contacted at: K.F.Tee@gre.ac.uk
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