There are existing standards and guidelines for the effective management of infrastructure through infrastructure asset management planning (IAM). However, few if any of these standards explicitly address the financial implications associated with the uncertainty that underlies the risk associated with service provision. Without credibly quantifying the potential implications of this network variable uncertainty (i.e. an extreme weather event that affects the performance and costs of many segments within the study network, or the introduction of a new technology that may impact the network cost estimates) infrastructure management systems may actually regularly and significantly over or under estimate the actual financial requirements required to provide services. Therefore, financial projections may actually include a systematic bias. It was hypothesized that a model could be developed that quantifies and communicates the financial implications of network variable uncertainty within the IAM context. A model was developed to demonstrate how network variable uncertainty could be included in financial planning for infrastructure networks. The model was able to: (1) be applied to various types of infrastructure networks, (2) incorporate network variable uncertainty, (3) compare alternatives and scenarios, and (4) support effective communication of results. The outputs of the model were the average network annual worth (AW) and network present worth (PW). These outputs, along with tornado plots, risks curves, level of service dashboards, and existing budget levels, were used to communicate the impacts of the network variable uncertainty on the financial projections. The model was developed using Excel tools linked to DPL software to utilize probabilistic methods. The Life Cycle Cost (LCC) portion of the model was successfully verified against an existing infrastructure costing tool, the Land and Infrastructure Resiliency Assessment (LIRA) tool developed by the Agri-Environmental Services Branch of Agriculture and Agri-Food Canada. The impact of the network variable uncertainty within the variables was also quantified in terms of levels of service provided by the organization. The developed model was first applied to a hypothetical twelve segment road network for illustrative purposes. For the hypothetical road network there were four events, representing network variable uncertainty, that were considered. These decisions or events included the: (1) decision to implement a new technology, (2) event of changing standards, (3) event of increased material costs, and (4) occurrence of an extreme rainfall event. The hypothetical network illustrated that if the defined decisions or events occurred then the expected network AW would increase by 41%. The impacts of decisions or events on the hypothetical network levels of service, stemming from network variable uncertainty, were also considered. The measured levels of service for the hypothetical network included the network financial sustainability indicator (an indicator reflecting the network current budget divided by the network annual worth as a percentage) and the frequency of blading of the roads. The model was next applied to a case study using the Town of Shellbrook sanitary main network. The Town has a large quantity of aging mains which were constructed in the 1960’s and are expected to require renewal in the near term. The network variable uncertainty for the case study resulted from the potential decision to implement a new trenchless technology for the renewal of sanitary mains. The new technology was expected to decrease the renewal costs. However, there was uncertainty as to what percentage of the sanitary mains would be found to be suitable for the new technology. Using the model it was determined that if the decision was made to implement the new technology, there would be an expected reduction of 17% in the network AW. The levels of service that were used for the Shellbrook case study were the network financial sustainability indicator (annual budget / network AW) and the meeting of standards set by regulating bodies. It was determined that the network financial sustainability indicator was sensitive to the decision to implement the trenchless technology, while the meeting of regulating bodies was not. If the decision was made to implement the new technology the network sustainability indicator would be expected to increase from 28% (if the new technology was not implemented) to 34% (if the new technology were implemented). The model was finally applied to a case study looking at the RM of Wilton gravel road network. The network variable uncertainty for this case study resulted from the potential increase in gravel material costs. The network variable uncertainty represented the magnitude of the annual increase in gravel costs. Given the event of increasing gravel costs the expected network AW would increase by 14%. The levels of service indicators used for the RM of Wilton case study were the network financial sustainability indicator and the frequency of blading. It was determined that the network financial sustainability indicator was sensitive to the event (increasing gravel costs), while the frequency of blading was not directly impacted (although it may be indirectly impacted). If the event of increasing gravel costs were to occur then the network financial sustainability indicator would be expected to decrease from 59% (if gravel costs did not increase) to 52% (if gravel costs did increase). This research proved that the hypothesis was correct, and that a model could be developed that quantified and communicated the financial implications and level of service impacts of network variable uncertainty for IAM planning. This research illustrated and quantified that IAM planning without accounting for network variable uncertainty, such as: (1) changing technology, (2) changing standards, (3) increasing material costs, and (4) extreme weather events, managers may introduce a systematic bias into long term planning. Network variable uncertainty can significantly impact the projected expenditures required for the long term provision of services. Infrastructure managers and decision makers need to manage infrastructure in a sustainable way over the long term in the face of uncertainty. It is necessary that decision makers have information regarding the impacts of network variable uncertainty on both LCCs and levels of service to make fully informed decision.

Deregulated and competitive power market places utilities under high pressure to assure providing power with a satisfactory level of power continuity. This objective entails a high level of reliability which in turn demands a high financial budget for design, operation, and maintenance. Therefore, the need for utilities to balance these factors has been increasing to become the core of a utility's asset management activities. Maintenance is a key aspect of asset management. The main objective of maintenance is to extend the lifetime of equipment and/or reduce the probability of failure. Maintenance activities play an important role in improving system reliability by keeping the condition of a system's equipment within an acceptable level. Generally speaking, technical requirements and budget constraints are the most influential factors in assigning maintenance activities. The most cost-effective maintenance approach is the approach that can sustain a high level of reliability while maintenance cost is minimized. The transformer has a significant role in the power system due to its remarkable effect on the overall level of reliability in addition to its extensive investments in the power grid. Transformer management is comprised of identifying the appropriate type and frequency to maintain the transformer, and the appropriate time to replace the transformer in a cost-effective manner. The essential objective of this thesis is to introduce a novel framework for transformer management. An approach which links maintenance and replacement decisions is presented in this thesis. This approach proposes a methodical decision-making system to determine the optimal time to replace the transformer. Indeed, the proposed approach essentially investigates the cost-effectiveness of replacing the transformer both before and after the lifetime is extended by maintenance. To properly investigate the effect of maintenance, maintenance activities should first be scheduled effectively. Therefore, this approach introduces a maintenance strategy based on reliability-centered maintenance (RCM) concept and genetic algorithm (GA) to optimally schedule maintenance activities. Two replacement studies are conducted: with and without the effect of maintenance. A comparison between replacement studies is discussed in the proposed approach.

The goal of this dissertation research is to model risk in delivery, operation and maintenance phases of infrastructure asset management. More specifically, the two main objectives of this research are to quantify and measure financial risk in privatizing and operational risks in maintenance and rehabilitation of infrastructure facilities. To this end, a valuation procedure for valuing large-scale risky projects is proposed. This valuation approach is based on mean-risk portfolio optimization in which a risk-averse decision-maker seeks to maximize the expected return subject to downside risk. We show that, in complete markets, the value obtained from this approach is equal to the value obtained from the standard option pricing approach. Furthermore, we introduce Coherent Valuation Procedure (CVP) for valuing risky projects in partially complete markets. This approach leads to a lower degree of subjectivity as it only requires one parameter to incorporate user's risk preferences. Compared to the traditional discounted cash flow analysis, CVP displays a reasonable degree of sensitivity to the discount rate since only the risk-free rate is used to discount future cash flows. The application of this procedure on valuing a transportation public-private partnership is presented. %and demonstrate that the breakeven buying price of a risky project is equal to the value obtained from this valuation procedure. Secondly, a risk-based framework for prescribing optimal risk-based maintenance and rehabilitation (M&R) policies for transportation infrastructure is presented. These policies guarantee a certain performance level across the network under a predefined level of risk. The long-term model is formulated in the Markov Decision Process framework with risk-averse actions and transitional probabilities describing the uncertainty in the deterioration process. Conditional Value at Risk (CVaR) is used as the measure of risk. The steady-state risk-averse M&R policies are modeled assuming no budget restriction. To address the short-term resource allocation problem, two linear programming models are presented to generate network-level polices with different objectives. In the first model, decision-maker minimizes the total risk across the network, and in the second model, the highest risk to the network performance is minimized.

Thesis (M.Sc.)(Applied Sciences)--University of Pretoria, 2005. / Title from opening screen (viewed 22 March, 2006). Includes summary. Includes bibliographical references.

Movable non-current assets are physical and mobile assets that a municipality uses to provide services to the community directly or indirectly. Therefore, effective movable non-current asset management is necessary to ensure that these assets provide value to both the municipality and the community. This study seeks to determine whether poor asset management negatively affects capital budgeting for procurement of movable non-current assets. Mbhashe Local Municipality, a Category B municipality in the Eastern Cape Province was selected for the study. A desktop research method was utilised for this study. The analysis of secondary data includes policy documents (such as National Treasury asset management guidelines and Mbhashe budgeting policy), books, journals, internet data, newspapers and research documents in order to determine asset management guidelines and budgeting theories by noteworthy scholars. Auditor General South Africa (AGSA) and State of Local Government Finance reports were also analysed to establish the current practice and impact of the role of the municipal management in its finances as well as budget spending patterns at Mbhashe Local Municipality. The results of the study revealed that Mbhashe Local Municipality’s non-compliance with asset management and budgeting policies and procedures throughout the period of the study negatively affected their capital budgeting decisions. The consequences of instability in leadership and lack of approved movable non-current asset management policy resulted in partial asset information, incorrect recording and accounting systems for assets and unauthorised disposal of strategic movable non-current assets. Although, an approved budget policy existed at Mbhashe Local Municipality, the budgetary information was unrealistic because of negligence such as: lack of public participation, consultation and alignment of the Integrated Development Plan (IDP) with the municipality’s objectives. This resulted in habitual under-spending of capital assets compared to the capital budget throughout the period of the study.

Masters in Public Administration - MPA / Government’s immovable assets are fundamental in achieving its service delivery objectives. If not put to productive uses the welfare of a country, or even its national income, could be reduced significantly. The value for money principle should resonate through effective asset management. “Poor management” of closed school buildings worth millions may be regarded as “financial wastage”. Four case studies reflecting various outcomes of re-use, abandonment and demolition will be reviewed. The application of legislation and policy on government immovable asset management are problematic when schools are closed down. The study focus will be on government immovable asset management and not the reasons for school closures. Literature in this field is very limited. The research findings could add value to the subject field by minimising the chances of a possible repetition of “bad management” of closed schools. Currently in public discourse is the possible closure of 26 schools in the Western Cape. The research could be used as a guiding document for stakeholders, administrators and other research scholars. The research objectives are to formulate a clear understanding on: The Governance of immovable asset management in government; The Responsibility of the different state stakeholders and their interaction on immovable asset management; and The participation of non-state stakeholders. A Qualitative research design is followed. Tools consist of four case studies, semi-structured interviews and questionnaires. A literature review and study of applicable legislative and policy documents was done and empirical data analysed. An international best practice model is also discussed. This study has revealed various research findings through the primary and secondary sources collected. Based on these findings specific recommendations are made to the various stakeholders. The wellbeing of all stakeholders and respondents were set above outcomes and objectives that the research could generate.

The view of the author presented in this dissertation is that the integration of modern railway technologies and information technology systems establishes effective maintenance management and ensures continuous asset management improvement. In conjunction with the integration of different technologies is the requirement to implement these technologies and strategies in a systematic process according to a prioritised order of value adding, to improve the required service objectives (Mitchell et al., 2007; Woodhouse, 2001). The dissertation describes the planning of maintenance activities on railway assets. It involves various aspects through the asset management life cycle from asset inventory and condition data acquisitioning methods and the utilization of maintenance history to assist in the work identification, planning and work execution of maintenance activities. The challenge in the railways includes a large geographic area resulting in challenges to minimize maintenance visits and resulting costs. It further provides details on the integration and efficient utilisation of information and presents the value it adds to ensure maintenance effectiveness. The study focuses on methods for data collection and a systematic process for decision-making analysis with the ultimate aim of producing an effective maintenance plan (specifically for mechanised tamping) based on all available infrastructure management data including operational requirements. Lastly the effect of condition-based maintenance is illustrated, demonstrating that this strategy increases maintenance effectiveness (doing the right things), resulting in a decrease in maintenance cost and an increase in capacity. / Dissertation (MEng)--University of Pretoria, 2012. / Civil Engineering / unrestricted

A portfolio optimisation problem involves allocation of investment to a number of different assets to maximize return and minimize risk in a given investment period. The selected assets in a portfolio not only collectively contribute to its return but also interactively define its risk as usually measured by a portfolio variance. This presents a combinatorial optimisation problem that involves selection of both a number of assets as well as its quantity (weight or proportion or units). The problem is extremely complex due to a large number of selectable assets. Furthermore, the problem is dynamic and stochastic in nature with a number of constraints presenting a complex model which is difficult to solve for exact solution. In the last decade research publications have reported the applications of metaheuristic-based optimisation methods with some success., This paper presents a review of these reported models, optimisation problem formulations and metaheuristic approaches for portfolio optimisation.

Many utility asset management programs have been developed following the U.S. Environmental Protection Agency (EPA) core definition of maintaining a level of service at the lowest life cycle cost. Most utilities, however, only incorporate performance measures into their asset management plans. A holistic approach to asset management is more beneficial because it takes into account the short and long term goals of the utility and can provide better service socially, economically, and environmentally. An analysis of the Town of Blacksburg wastewater utility's practices and data collection was performed using a holistic asset management framework developed at Virginia Tech. This theoretical framework supports the three key aspects of asset management: performance, sustainability, and resilience. Where gaps were identified, recommendations were made as to what practices, goals, and data the Town can add to their current plan so that their program is more holistic. Research has shown that many utilities have trouble adapting to asset management plans because job roles and responsibilities change and are often not well defined. To help the Town of Blacksburg adapt to their new asset management plan with performance, sustainability and resiliency goals, a work process flow was designed. A work process flow allows for visible changes in job responsibility to be more easily recognized as well as allow for future changes to be made. / Master of Science

The limited available budget along with old aging infrastructure in nation magnifies the role of strategic decision making for maintenance of infrastructure. The challenging objective is to maintain the infrastructure asset systems in a state of good repair and to improve the efficiency and performance of the infrastructure systems while protecting and enhancing the natural environment. Decision makers are in need of a decision support system to consider these multiple objectives and criteria to effectively allocate funding and achieve the highest possible return on investment on their infrastructure. The research proposes and validates a framework for such decisions. The proposed model aims at finding optimal techniques for maintenance of multiple roadway asset items while taking into account time, cost, level of service and environmental impacts. Therefore, the goal is to answer what are the optimal combinations of maintenance techniques for roadway assets while more than one objective is being optimized. In other words, the main objective is to develop a decision support system for selecting and prioritizing necessary actions for MRandR (Maintenance, Repair and Rehabilitation) of multiple asset items in order for a roadway to function within an acceptable level of service, budget, and time while considering environmental impacts. To achieve these desirable outcomes, this model creates a two-stage framework for a sustainable infrastructure asset management. First a multi-objective problem based on the multi colony ant colony optimization is analyzed. The objectives of the problem are: (i) Minimizing maintenance costs, (ii) Minimizing maintenance time, (iii) Minimizing environmental impacts and (iv) Maximizing level of service improvement. In the second stage, the results of the multi objective optimization will be prioritized using a Multi Criteria Decision Making (MCDM) process. The proposed approach will simultaneously optimize four conflicting objectives along with using a multi criteria decision-making technique for ranking the resulted non-dominated solutions of multi objective optimization. The results of implementation of the proposed model on a section of I-64 highway are presented for a sub-set of asset items. Moreover, the proposed model is validated using a scalable test problem as well as comparison with existing examples. Results reveal the capability of the model in generation of optimal solutions for the selection of maintenance strategies. The model optimizes decision making process and benefits decision makers by providing them with solutions for infrastructure asset management while meeting national goals towards sustainability and performance-based approach. In addition, provides a tool to run sensitivity analysis to evaluate annual budget effects and environmental impacts of different resource allocation scenarios. Application of the proposed approach is implemented on roadway asset items but it is not limited to roadways and is applicable to other infrastructure assets. / Ph. D.