Part 1 - Introduction to Asset Management.pdf

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Part 1: Introduction toAsset Management

GUIDE TO ASSET MANAGEMENT


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Guide to Asset ManagementPart 1: Introduction to Asset Management


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Guide to Asset Management Part 1: Introduction to Asset Management

Summary

This document introduces the Austroads Guide to Asset Management, the aim of which is to offerguidance on how to best manage physical road infrastructure. The guide covers various aspectsof asset management including how to determine and plan to accommodate

stakeholder/community expectations, formulate and review asset strategies, develop worksprograms, assess asset performance and undertake asset valuation and audit.

Whilst the focus of the Guide to Asset Managementis on the management of the physical roadassets, the importance of total transport system management, which covers all activities concernedwith the provision, operation, maintenance, renewal and disposal of transport infrastructure assets,is duly recognised. Road asset owners and managers are therefore encouraged to adopt acomprehensive range of coordinated activities, from transport planning, through design,implementation and operations in order to maximise community benefits.

The guide complements the Austroads Publication AP-R202/02 Integrated Asset ManagementGuidelines for Road Networks, which describes in detail the integrated asset management

planning processes and recommended implementation stages aimed at achieving businessimprovements within road agencies. The guide also recognises the purpose of the AustralianTransport Councils National Guidelines for Transport System Management in Australia, the scopeof which embraces all land transport modes and is compatible with its principles.

The specific sections of the guideand its accompanying commentarieselaborate key road assetmanagement principles through providing best practice recommendations and by way of example.

Keywords

Asset management, roads, stakeholder/community expectations, asset strategies, worksprograms, asset performance, asset valuation, audit, implementation, business process, improved

practices, information systems, decision support tools, objectives, road use management, heavyvehicle access, service levels, intervention levels, whole of life cycle costing, managing risks

First published 2006Second edition November 2009

Austroads Inc. 2009

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part maybe reproduced by any process without the prior written permission of Austroads.

ISBN 978-1-921551-87-1

Austroads Project No. AP1008Austroads Publication No. AGAM01/09

Project Manager

Kathy Martin, MR WA

Prepared by

Kieran Sharp and Tyrone Toole, ARRB Group


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Published by Austroads IncorporatedLevel 9, Robell House287 Elizabeth StreetSydney NSW 2000 AustraliaPhone: +61 2 9264 7088Fax: +61 2 9264 1657Email: [email protected]

www.austroads.com.au

This guide is produced by Austroads as a general guide. Its application is discretionary. Roadauthorities may vary their practice according to local circumstances and policies.

Austroads believes this publication to be correct at the time of printing and does not acceptresponsibility for any consequences arising from the use of information herein. Readers shouldrely on their own skill and judgement to apply information to particular issues.
mailto:[email protected]:[email protected]:[email protected]


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Guide to Asset ManagementPart 1: Introduction to Asset Management

Sydney 2009


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Austroads profi le

Austroadsp purpose is to contribute to improved Australian and New Zealand transport outcomesby:

providing expert advice to SCOT and ATC on road and road transport issues

facilitating collaboration between road agencies

promoting harmonisation, consistency and uniformity in road and related operations undertaking strategic research on behalf of road agencies and communicating outcomes

promoting improved and consistent practice by road agencies.

Austroads membership

Austroads membership comprises the six state and two territory road transport and trafficauthorities, the Commonwealth Department of Infrastructure, Transport, Regional Developmentand Local Government in Australia, the Australian Local Government Association, and NewZealand Transport Agency. Austroads is governed by a council consisting of the chief executiveofficer (or an alternative senior executive officer) of each of its 11 member organisations:

Roads and Traffic Authority New South Wales

Roads Corporation Victoria

Department of Transport and Main Roads Queensland

Main Roads Western Australia

Department for Transport, Energy and Infrastructure South Australia

Department of Infrastructure, Energy and Resources Tasmania

Department of Planning and Infrastructure Northern Territory

Department of Territory and Municipal Services Australian Capital Territory

Department of Infrastructure, Transport, Regional Development and Local Government

Australian Local Government Association

New Zealand Transport Agency.

The success of Austroads is derived from the collaboration of member organisations and others inthe road industry. It aims to be the Australasian leader in providing high quality information, adviceand fostering research in the road sector.


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GUIDE TO ASSET MANAGEMENT PART 1 : INTRODUCTION TO ASSET MANAGEMENT

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CONTENTS

1 INTRODUCTION............................................................................................................ 1

1.1 The Need for Asset Management ................................................................................... 1

1.2

The Aims and Benefits of Asset Management................................................................ 11.3

Definition and Scope of Asset Management................................................................... 1

1.4 The Austroads Integrated Asset Management Guidelines for Road Networks .............. 21.4.1 Introduction to the IAM Guidelines.................................................................... 21.4.2 Asset Management as a Process Approach..................................................... 31.4.3 Implementation and Continuous Improvement in Asset Management

Practices........................................................................................................... 51.5

The Role of Asset Managers .......................................................................................... 6

1.6

Relationship and Synergies with the National Guidelines for Transport SystemManagement in Australia ................................................................................................ 7

1.7 Achieving Effective Asset Management ......................................................................... 9

2

OVERVIEW OF KEY ASSET MANAGEMENT PRINCIPLES AND PRACTICES....... 10

2.1 Policy-driven and Results Oriented and Customer Focused ........................................ 102.2

Managing Current Assets and Providing for Future Assets.......................................... 12

2.3

Providing a Defined Level of Service............................................................................ 14

2.4 Developing Cost-effective Programs for the Long-term................................................ 152.5 Managing Risks Associated with Asset Failures .......................................................... 162.6 Performance Monitoring, Audit and Feedback ............................................................. 172.7 Use of Information Systems and Decision Support Tools ............................................ 182.8 Continuous Improvement in Asset Management Practices and Human Resource

Skill Development ......................................................................................................... 20

3 THE AUSTROADS GUIDE TO ASSET MANAGEMENT ............................................ 21

3.1

Structure ....................................................................................................................... 21

3.2 Relationship to other Austroads Publications ............................................................... 223.3 Scope of other Parts of the Austroads Guide to Asset Management ........................... 23

3.3.1 Part 2: Community and Stakeholder Requirements ....................................... 233.3.2 Part 3: Asset Strategies.................................................................................. 233.3.3 Part 4: Program Development and Implementation........................................ 243.3.4 Parts 5, 6 and 7: Asset Performance.............................................................. 243.3.5 Part 8: Asset Valuation and Audit ................................................................... 24

REFERENCES ...................................................................................................................... 25


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TABLES

Table 1.1: The asset management process ...................................................................... 3

Table 1.2: Differences in functional roles........................................................................... 6

FIGURES

Figure 1.1: Integrated asset management process flow diagram....................................... 4

Figure 1.2: Hierarchy of linked objectives for transport system development..................... 8

Figure 2.1: Elements of asset management for road networks ........................................ 10

Figure 2.2: Typical road condition deterioration with time................................................. 12

Figure 2.3: Equitable and economically efficient standards .............................................. 15

Figure 2.4: Relationship between maintenance standard and transport costs ................. 16

Figure 2.5: Central role of information in the asset management process ....................... 19

Figure 3.1: Structure of Austroads Guide to Asset Management with focus on Part 1 ..... 22


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1 INTRODUCTION

1.1 The Need for Asset Management

Effective asset management is of critical importance for all transport agencies and managers of

road infrastructure because: Roads and associated infrastructure are vital links in the chain of communications providing

access and mobility for communities and industry.

The value of road infrastructure assets for all classes of roads in Australia and New Zealandis extremely high compared to other public infrastructure; of the order of A$150 billion dollarsin replacement cost terms. This equates to approximately 50% of the total governmentcapital investment in education, health, energy, mining and manufacturing combined.

Effective stewardship is essential to help ensure public safety, for retaining the value andserviceability of these assets for future generations, and for providing best value to users andinvestors.

The government and the community demand increased accountability for effective and

efficient spending of public funds.

Competition for limited funds across government and other sectors is increasing.

1.2 The Aims and Benefits of Asset Management

The key asset management objective contained in the Austroads Assets Strategy is to minimisethe whole of life cycle costs of road assets, whilst aiming to meet the needs and expectation ofthe community and other stakeholders who use or benefit from the asset, and to fulfil governmentobjectives in terms of safety, environment and equity of access. Within this context, its main focusis on the management and preservation of physical assets.

Thus, when asset managers speak about whole of life cycle costs (WOLCC), they mean thosecosts incurred by the responsible road agency as well as the costs incurred by road users, such asvehicle operating costs, travel time and crashcosts (see Figure 2.4). In an ideal situation, wherefunding is not constrained, the best possible outcome for the community is achieved when the sumof road agency costs and road user costs is minimised.

To meet these objectives, asset managers should ensure that:

Assets are managed to conditions which are appropriate for intended use.

The immediate and long-term budget requirements, together with the consequences ofbudget variations, are explicit.

Risks associated with asset use are managed, recognising the duty of care owed to the

public, with emphasis given to safety and minimising environmental impacts.

1.3 Defini tion and Scope of Asset Management

Roads exist as part of an integrated land transport system as a service delivery arrangement.Therefore road system managers need to have a strategic view to manage demand and matchdemand with supply, through the ongoing provision of new and upgraded links and maintenance ofexisting stock to ensure the least long term cost to the community.

It is essential that this context be borne in mind even in addressing the more routine maintenanceactivities to ensure cost-effective solutions are being delivered.


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Whilst the term asset management has a variety of interpretations in terms of scope, in thebroadest sense total road system management includes all aspects concerned with the provision,operation, maintenance, renewal and disposal of road infrastructure assets, such as:

transport planning

traffic modelling

infrastructure maintenance, preservation, provision and renewal

network operations (meaning road use management issues)

project evaluation of new road infrastructure, or major projects

project level preparation and implementation of works

pavements, materials and bridge technology

road design

road safety

traffic engineering.

However most of these functions are well documented in the Austroads Guide to PavementTechnologyand the Austroads Guide to Asset Management complements these other guides byfocusing on best practice management of the physical infrastructure. Therefore, for the purposesof this guide the definition of road asset management is:

Road asset management is a comprehensive and structured approach to the long-term provision and maintenance of physical road infrastructure using soundengineering, economic, business and environmental principles to facilitate the effectivedelivery of community benefits.

It focuses on the physical asset recognising that:

The management of physical assets is not an end in itself, but is undertaken to ensure theoperating functionality of the road network.

Purely asset-oriented interventions will prove constraining and potentially too expensive bynot keeping a broad enough focus on all possible solutions.

Whilst specialised sections of member agencies are actively concerned with the provision ofnew assets, asset management practitioners must be aware of the ongoing managementimplications of expansion decisions.

Asset managers need to make decisions in the knowledge of road use management (RUM)strategies and provide feedback to the road use managers in order to ensure optimal use ofcurrent assets.

1.4 The Austroads Integrated Asset Management Guidelines for RoadNetworks

1.4.1 Introduction to the IAM Guidelines

In establishing best practice in asset management, Austroads has recognised the need for:

a consistent framework of integrated asset management planning processes

associated implementation guidelines for practitioners.


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Thus, in 2002, Austroads published a set of Integrated Asset Management Guidelines for RoadNetworks (Austroads 2002b), referred to as the IAM Guidelines. These are fundamental to thefulfilment of Austroads asset management objectives and, therefore, complement the aims of thisguide, and will remain as a flagship publication within the Austroads Guide to Asset Management.

This section of the guide summarises the scope and contents of the IAM guidelines and placesthem in context by identifying links with the best practice recommendations and examples providedherein and encouraging commitment to the following key principles:

adoption of a rigorous and cyclic process-based approach

development of clear business processes and organisational accountabilities

continuous improvement in asset management practices and human resource skilldevelopment.

In so doing it describes:

the asset management process

the main stages of an asset management implementation program

the role(s) of the asset manager.

1.4.2 Asset Management as a Process Approach

To aid the establishment of a consistent framework of processes and procedures for improvingasset management practice, Austroads has adopted a conceptual framework which comprisesthree main parts and seven phases as shown in Figure 1.1and Table 1.1.

Table 1.1: The asset management process

Asset management strategic planning

Part 1

Phases 1 to 4 *

Define objectivesForm asset strategies

Develop investment programs

Identify asset maintenance needs

Setting asset management objectives, and defining a strategicplan based on identified corporate and stakeholderrequirements. The asset management strategic planningprocess is the major impetus to the effective working of assetmanagement.

Asset management actions

Part 2

Phase 5 *

Implement works programs

Creation/acquisition, operation, rehabilitation andreplacement, disposal/rationalisation of the agencys assets.

Asset management performancefeedback

Part 3

Phases 6 and 7 *

Audit

Review

Auditing the implementation and reviewing the outcomes ofasset management actions to gauge their effectiveness insatisfying organisational strategies. The results of suchreviews are used as inputs to subsequent strategic planningcycles.

Refer to Figure 1.1.

Source: After Austroads (2002a).

This conceptual framework has since been developed further and personalised by some state roadauthorities as part of their internal asset management practice. Many organisations have alsosystematised this process, in terms of establishing corporate procedures and complementaryinformation systems and decision support tools. The process and procedures are fundamental,and provide the basis for specifying technological systems.


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GUIDE TO ASSET MANAGEMENT PART 1

Source: After Austroads (2002a) with minor adaptation.

Figure 1.1: Integrated asset management process flow diagram

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The scope of network level asset management covered by the Guide to Asset Managementconcentrates on the provision and maintenance of physical infrastructure, shown as asubcomponent of Figure 1.1. However, it does not ignore the need for complementary activitiesand the benefits arising from an integrated approach, and seeks to alert asset managers about therange of infrastructure-oriented and other solutions at their disposal.

The strategic planning stage is vital to effective asset management and consists of:

The Planning Sub-Process, which describes the overall process flow, and outlines the needfor various frameworks, standards and strategies.

The Information and Communication Sub-Process, which deals with the flow of informationfrom the Planning Sub-process. This information serves to involve and inform externalstakeholders, and facilitates decision making at different levels of an organisation byarticulating internal objectives, strategies and plans.

Whilst strategic planning may be performed on a multi-year basis linked to an authoritys planningand funding cycles, specific components fit an annual cycle, including:

asset performance gap analysis, which produces a total needs program

optimisation and prioritisation of options and proposed funding scenarios and an outline ofworks programs

submission of agreed work program.

The achievement of objectives through monitoring (Phases 6 and 7) provides feedback on theoverall process allowing strategies to be reviewed and further actions planned.

Organisational objectives, strategies and standards must also be regularly reviewed at least forcurrent relevance.

1.4.3 Implementation and Continuous Improvement in Asset Management Practices

Asset management is a way of doing business in the broadest sense. It is not simply aboutimplementing certain activities to achieve specified technical standards, nor is it primarilyconcerned with the application of modern software tools, although each have a role to play. It is infact much broader. It is about delivering better performance results through appropriately targetedinvestment in the introduction and refinement of improved people skills, products and processes.The ultimate goal is to deliver benefits to all road transport stakeholders.

Four sequential stages are recommended to progress a road agency from the early stages ofinitiating an asset management program to full implementation of the Austroads IAM process,namely:

Stage 1 Program establishment

Stage 2 System design and development

Stage 3 Pilot planning cycle

Stage 4 General implementation.

Whereas many readers of this document will belong to institutions with established practices, theAustroads Guide to Asset Management recommends a structured re-assessment of currentorganisational practice to identify priority areas for improvement. Many reputable organisationshave adopted a similar approach and reaped significant benefits from so doing (AASHTO 2002and VicRoads 2004a).


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1.5 The Role of Asset Managers

The role of asset managers in integrating organisational decisions embraces the following:

providing a link between strategic goals and longer term processes and annual project leveldecisions

providing a link between asset creation and asset maintenance decisions

providing a link between agency road use management and physical asset decisions

considering all asset classes pavements, structures, other road-related infrastructure

ensuring consistent communication between legislators, community, stakeholders, agencyexecutive, frontline practitioners

ensuring the appropriate management and flow of asset related data and information acrossthe organisation in order to inform asset strategy development and monitor assetperformance

providing a link between finance, planning, human resources, information and delivery

functions of the organisation providing asset performance feedback to inform future policies and strategies.

Table 1.2: Differences in funct ional roles

Managementfunction

IAM phases orrelated activities

Typical aims Organisations concerned

Networkinformation

All phases andactivities

Management and reporting of information on road assets

Importation and export of data to analytical and reportingtools

Owners, asset managers andservice providers

IAM Phases 1and 3

Formulation of objectives and associated levels ofservice and standards

Owners and sectoral policyadvisers

Network planning IAM Phases 2and 3

Developing strategies and resource requirements tosupport defined levels of service, standards andobjectives, including use of non-build solutions

Owners and asset managers oroperators

Programming IAM Phase 4

Network screening to identify candidate sections

Production of a long list of priority sections with rankingbased on economic criteria, under budget constraint

Determining the necessary work program to meetperformance objectives

Asset managers or operators

IAM Phase 4 andTransport Planning

Economic (and financial) feasibility of alternatives forrehabilitation, new investment or capacity expansion

Owners and project/assetmanagers or operators

Preparation

IAM Phase 5

Project investigation and design of works

Preparation and issue of contracts and worksinstructions

Project/asset managers oroperators

Implementation ofphysical works

IAM Phase 5Planning and undertaking major or minor works to bedone on specific sections and projects

Service providers and project/assetmanagers

Monitoring andevaluation

IAM Phases 6and 7

Measuring achievements against key performanceindicators

Assessing future asset management strategies andplans

Owners

Asset managers or operators andservice providers would beexpected to implement internal QAsystems as part of each specificfunction

Source: Adapted from Robinson et al. (1998).


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Organisations, and individuals, should aim to identify their role in the overall process. Identifyingsuch differences in functional roles, as illustrated by the examples in Table 1.2will help improveeffectiveness through focusing on particular tasks and doing them well. In so doing, the followingpoints should be emphasised:

ensuring that planning accommodates non-build solutions

undertaking comprehensive project preparation activities, including economic feasibility,particularly for major works

encouraging increased involvement of project management and delivery staff in preparationand implementation activities.

1.6 Relationship and Synergies with the National Guidelines forTransport System Management in Australia

Road asset management needs to take place in support of total (land) transport system objectives,which in turn aim to meet the transport needs of the community. At the highest level transportcontributes to broader societal and whole-of-government objectives.

The challenge therefore is for road asset management to consider and contribute in a proactivemanner to meeting this demand, and not simply respond with a supply-side approach.

The Australian Transport Council (ATC) has published National Guidelines for Transport SystemManagement in Australia (ATC 2004) to provide a framework for non-urban land transportdecisions. These guidelines address the Australian Governments approach to funding, planning,developing and managing Australias national land transport infrastructure.

The National Guidelinesaddress multiple modes, both road and rail, and are primarily concernedwith the designated national land transport network and its corridors, although the overallframework is relevant to all classes of transport infrastructure and associated modes.

The National Guidelinesadopt a similar seven-phase approach as endorsed by Austroads, andaim to achieve transport system objectives which are vertically linked, and integrated as illustratedin Figure 1.2. The five-phases illustrated in the Figure are complemented by two further phases,namely project and program implementation, and post-completion review.

The National Guidelinesalso recognise that direct linkages will exist between non-sequentialphases, e.g. between policy choices and program structure, such as regional Auslink programs,black spot improvement programs, etc. Further examples would include the balance between theroutine maintenance, preventative maintenance and rehabilitation components of an overall roadinfrastructure preservation strategy.

A key requirement is to ensure strategic fit between high level objectives and project and programresponses. To achieve this requires appropriate strategies to be established and policy choices tobe made. Examples of the latter include:

the degree to which desired outcomes should be pursued through land use policydevelopments rather than applications of transport instruments alone

the preferred role of infrastructure versus non-infrastructure strategies and investment

the strategic emphasis which should be given to such issues as road freight versus railfreight as preferred land transport modes

the funding of capital (new asset stock) versus maintenance (existing asset stock)

investment


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the relative weightsgiven to different objectives

the degree to which an equityobjective should be pursued to complement an economicefficiencyobjective in defining service levels and evaluating investment alternatives.

Source: After Australian Transport Council (2004).

Figure 1.2: Hierarchy of linked objectives for transport system development

The current version of the National Guidelinesis predominantly related to large-scale capitalinvestment on a selected part of the total land transport system, while this guide is concerned witha network-oriented approach to road infrastructure preservation covering all road classes.However, the above issues are equally pertinent to both sets of guidelines and are addressedthroughout this document.

Road asset managers should familiarise themselves with the National Guidelines and always seekto support the transport needs of the community in its broadest sense.

In addition, it should be understood that this new, integrated approach to transport systemmanagement lends itself to the development of strategic long-term directions which promote the

development of scenarios for anticipating future demand for transport services. A number ofAustroads members have adopted this approach as part of their strategic planning process, see forexample Queensland Department of Main Roads (2002) and Queensland Transport/ QueenslandDepartment of Main Roads (2000), thus helping to ensure adoption of integrated solutions to meetsocietys needs, both now and in the future. Such initiatives are encouraged amongst allorganisations.

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1.7 Achieving Effective Asset Management

To achieve effective asset management this guide offers guidance and best practice examples ofthe following asset management principles:

adoption of a rigorous, and cyclic process-based approach which is policy-driven and results

oriented and customer focused manages current assets and provides for future assets

provides a defined level of service

develops cost-effective programs for the long-term

manages risks associated with asset failures

requires performance monitoring, audit and feedback

employs appropriate quality information and decision support tools

encourages continuous improvement in asset management practices and human resourceskill development

encourages development of clear business processes and organisational accountabilities.

Accompanying commentaries elaborate the above principles in the following areas:

characteristics and example key results areas and key performance indicators

increasing efficiency through road use management

management of heavy vehicle access

service levels and intervention levels

whole of life cycle costing

managing risks.


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2 OVERVIEW OF KEY ASSET MANAGEMENT PRINCIPLESAND PRACTICES

2.1 Policy-driven and Results Oriented and Customer Focused

Asset management is conducted within the context of organisational goals, policies and budgetconstraints. Goals and policies must be established within a framework which incorporatescommunity input. Performance objectives provide a way to convey to the community howagencies are managing public assets.

Figure 2.1illustrates how asset management strategies aim to meet these needs and aredeveloped from a number of elements. An understanding of how they relate is necessary todevelop and review the effectiveness of an overall strategy. These relationships also provide aframework to monitor and review existing strategies.

Figure 2.1: Elements of asset management for road networks

In recognition of the principle that roads should be treated as a service to the community, Phase 1of the Integrated Asset Management Process requires clear assessment and definition of RoadAgency and Stakeholder Requirements and for these to be articulated in terms of key resultsareas (KRAs) and key performance indicators (KPIs).

Stakeholder and community input through surveys, focus groups and other structured methods isan essential requirement of good asset management. Customer input is fundamental in settingstandards and must be followed by ongoing review to track whether customer expectations arebeing achieved.

Austroads have and continue to undertake significant studies in this area, see for example Tsolakisand Thoresen (1998) and the Austroads publication Guidelines for Community Input in SettingLevels of Service and Intervention Standards for Road Networks(Austroads 2002b). These shouldbe consulted prior to planning, implementing and presenting the results of surveys.

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From a broad asset management perspective, important considerations include:

a need to start at a network level to agree overall principles and prevent local issues fromdominating outcomes from the outset

giving sufficient attention to study design so that the objectives of any consultation arefulfilled as far as possible

identifying who the community is and ensuring appropriate representation for the task inhand, including those stakeholders that represent the entire community, those with a localsocial interest and those with a clear financial interest

being clear about the value of both qualitative and quantitative surveys, where the latter mayhelp explain why certain issues are important to users, whilst the former may help quantifytheir importance

focusing questions to represent the type of road environment, including different rural andurban situations, and circumstances where investment is driven by traffic demand or mostlyby social justice and other factors

distinguishing between circumstances where a trade-off under a zero-sum scenario may beappropriate, and those where a more direct, commercial willingness to pay approach maybe best suited.

Agency KRAs should be defined for each generic area in which improvement is required orperformance should be monitored. They should be in line with corporate objectives and shouldreflect an agencys internal operations and performance, and the service provided to users orareas affecting other stakeholders. KRAs should embrace economic, social, safety,environmental, customer service and financial performance. For example:

ensure a safe road infrastructure

deliver a target level of service, including meeting ride quality and capacity targets which

contribute to overall transport efficiency preserve the physical assets and provide continuity of access

contribute to a sustainable environment, by considering environmental outcomes in planningand decision making and by employing appropriate methods and measures to reduceimpacts and enhance environmental values (Austroads 2006).

Asset management objectives, or KPIs, should also be formulated which are more tightly defined interms of indicators and target criteria. Consequently, these KPIs should be specific, directly andobjectively measurable, attributable, affordable, capable of being monitored, achievable and beused to:

formulate strategies and therefore be applied in IAM Phase 2

determine asset management actions as part of IAM Phases 3 and 4

monitor the achievement of organisational goals and service levels in IAM Phases 6 and 7.

Austroads National Performance Indicators (Austroads 2001) facilitate assessment of both roadsystem and road agency performance of Austroads member authorities and can provide a basis fordefining suitable indicators for other organisations. The Austroads performance indicators areavailable on the Austroads website and at the time of writing comprise a set of 36 indicators, ten ofwhich are classed as road agency performance indicators. Specific targets are not set, butstatistics related to each indicator are published and provide a basis for monitoring trends inservice levels and other indicators.


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For asset management, the most widely used road agency performance indicator in Australia andNew Zealand is Smooth Travel Exposure (STE); defined as the proportion of travel undertakeneach year on roads less than a specified level of roughness. Road authorities report this and otherinformation, typically at annual intervals, and also record achievements against the target orlimiting values which they aim to achieve. Reporting may be made separately for different classes

of road, and targets may also vary.

2.2 Managing Current Assets and Providing for Future Assets

The development of road asset management strategies forms the core of IAM Phase 2. Whilstinvestment programs concentrate on maintenance and rehabilitation of road pavements andbridges, they should be developed in coordination with road use strategies. The level of roadsystem performance provided by the asset can be affected by management actions whichinfluence the need for travel, the type of travel and types of vehicles allowed.

An effective infrastructure management strategy should address both existing and new assets. Itshould contain a suitable range of interventions which are essentially preventative in nature and,as illustrated in Figure 2.2, can reduce long-term costs. The stitch-in-time policies used by anumber of Australian road agencies, which are particularly applicable to the preservation ofpavement assets, adhere to this principle, for example see VicRoads (1993). These and similarstrategies are highly recommended as they have been found by many practitioners to provide areturn on investment of around two or three timesthat obtained when assets are allowed todeteriorate in an uncontrolled manner, or to a condition where full replacement is necessary.

Source: After SADC (2003).

Figure 2.2: Typical road condit ion deterioration with time

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Those components of an infrastructure (preservation) strategy which seek to ensure adequateperformance of existing assets comprise an appropriate mix of the following road assetmanagement responses:

Routine maintenanceactivities which address minor defects on the carriageway andstructures, off-carriageway works including grass cutting, drain clearing and the like, and

essential activities to remove obstacles from the road and ensure a base level of road safety.The need for such activities should not be underestimated. Considerable evidence existswhich demonstrates that rates of deterioration are higher in the absence of effective routinemaintenance, including where basic drain clearing is not performed to an adequate level.

Preventative periodic maintenancedesigned to reduce future deterioration by timelysurface interventions to limit the need for expensive rehabilitation, and to ensure minimumskid resistance and general safety levels are maintained. Such works can be relativelymodest in unit cost terms, but highly effective when based on whole of life considerations andnot by adopting a worst-first approach.

Rehabilitationwhich targets roads whose ride quality has deteriorated significantly, or whichdisplay inadequate structural capacity for current or future traffic loading. By their nature,

such works are very costly and might be expected to be of the order of five to ten times morecostly than a preventative treatment program. Where a large program of rehabilitation exists,say greater than 3-4% per annum, it is likely that this reflects a lack of investment in periodicinterventions, neglect, poor implementation or a discrete increase in traffic loading patterns.Timely intervention of appropriate quality is best. Conversely, where the replacementprogram is very small, say less than 1% per annum, and programmed maintenance costs areincreasing and condition is falling, it is likely that expenditure on rehabilitation is too low.Again, timely rehabilitation is required to ensure whole of life cycle costs are minimised.Appropriate solutions should be developed based on best practice, for example seeAustroads (2004a).

In todays environment, the above set of responses needs to be extended to include:

Capacity improvement programsto optimise traffic flow, including identifying the need foradditional traffic capacity or improved traffic management measures. Solutions requireconsiderable co-ordination both within and between agencies and in many cases theoptimum response may be through improved road use management.

Road safety and blackspot improvement programs to reduce the incidence of roadcrashes and provide appropriate facilities for pedestrians and cyclists and other vulnerableroad users.

Management strategies for heavy vehicle access todeliver efficient freight services thushelping provide customers with goods at affordable prices. However, asset managers areoften worried at the existence of very heavy or oversized vehicles and the potential for

accelerated damage to roads and structures. Safety may also be a concern. It is importanttherefore that such issues are taken into account in both infrastructure and road usemanagement. Strategies need to recognise the current state of knowledge regarding heavyvehicle contributions to the damage of road pavements and structures, and should aim toundertake any analysis in a nationally consistent manner (Austroads 2004b).


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2.3 Providing a Defined Level of Service

As per Phase 3 of the Integrated Asset Management Process, asset strategies should bedeveloped with clear level of service objectives providing the basis for:

planning needs

assessing risks

gauging the quality of delivery.

Levels of service should be established for:

all classes of assets, and their use, including for basic access

major structures such as bridges and culverts

environmental and social impacts, these being amongst the least visible yet most important.

Each agency must establish levels of service appropriate to its organisational goals and resourceconstraints, and consistent with the perceived needs of the community. Absolute levels of serviceshould be varied with respect to the role and importance of the asset and its use within the roadsystem. Higher trafficked roads warrant a higher level of service. This increases overall transportefficiency through better ride comfort and higher travel speeds, and helps reduce costs to roadusers.

Lower trafficked roads provide fewer opportunities for direct road user savings to offset investmentcosts, and therefore associated service levels are generally lower. However, minimum levels ofservice should be encouraged to ensure basic levels of safety and accessibility to essentialservices, and to minimise loss of assets. Access also promotes productivity, and is an essentialcatalyst to growth in economic and social terms.

Most asset managers and planners recognise such linkages, and there is general acceptance thata minimum level of service, which may be varied based on demand, should be adopted as ageneral policy.

The choice therefore is to set levels of service which strike a balance between being equitable andin being economically efficient. The range of possible options is illustrated in Figure 2.3. Typically,practical considerations usually warrant the adoption of equitable standards, which neither favoureconomically efficient standards, nor uniform standards. The adoption of a set of steppedminimum standards can achieve a comparable result, and may form the basis of an economicbase case for investment analyses. Acknowledging this is generally accepted as good practice,and is highly recommended.


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Source: After ATC (2004).

Figure 2.3: Equitable and economicall y effic ient standards

Most road authorities publish target level of service criteria which are based on a hierarchy relatedto function and overall use. In many cases these are also directly related to engineering designguidelines with respect to the safety, speed and comfort of travel.

The availability of such targets provides a further yardstick against which performance can bemonitored and reported later in Phases 6 and 7.

2.4 Developing Cost-effective Programs for the Long-termRoad investment programs present a set of programmed management actions to achieveperformance objectives and are linked to the expected life of the assets and their maintenancetreatments. Road investment programs are formulated on the basis of a gap analysis which isperformed during IAM Phase 3, and are delivered as a Total Needs Program in IAM Phase 4 andshould be presented with accompanying plans for:

the entire road network

a region

a road corridor

a road link, or project.

Significant benefits can be gained by employing solutions planned using whole of life cycle costing(WOLCC).

WOLCC involves an evaluation of all the component costs incurred over the whole life of a project.By adopting a long-term view of the road system, comprehensive WOLCC promotes considerationof total costs including construction, maintenance and operational expenditure and all of thevariables involved in the evaluation such as user costs (delays, travel time and vehicle operatingcosts), safety costs and associated maintenance and rehabilitation costs, agency capital costs androutine life cycle maintenance costs.

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The manner in which the component costs change is illustrated in Figure 2.4, where increases inconstruction/rehabilitation expenditure reduce the costs to road users. The optimum (economic)standard is obtained when the total transport costs are minimised, and this optimum varies inrelation to traffic level and the associated mix of costs. For a given traffic level, if the road is built toa standard higher than optimum or if the timing of its implementation is either premature or

significantly delayed, then the benefits would not sufficiently outweigh the additional costs andtherefore the solution would be sub-optimal. Care should be taken to avoid false economieswhere expenditure shortfall below the optimum level of investment leads to significantly greatertransport costs and long-term asset management backlogs.

WOLCC employs the results of deterioration, the effects of treatments and user cost modelling onthe infrastructure to compare alternative investment strategies, the purpose of which is to:

determine how asset life may be best extended by controlled maintenance

determine the optimum timing, intervention levels and mix of treatments to be employed.

WOLCC techniques applied at a system-level allow competition for funds to take place between

projects, with the aim of maximising benefits across a road network in order to prepare long-termroad development and maintenance plans under different funding scenarios.

Source: After SADC (2003).

Figure 2.4: Relationship between maintenance standard and transpor t costs

2.5 Managing Risks Associated with Asset Failures

Risk management is a core component of asset management activities. Key risks managedthrough asset management are:

financial risks addressed through the adoption and enforcement of asset preservation andpreventative maintenance policies (see Sections 2.2, 2.3and 2.4above)

operational risks by appropriate planning and operational responses in order to limit harmto individual members of the public or to their property.

This increased alertness has resulted from changes in legislation which was promulgated following

the Australian High Courts decision in 2001 that the law of negligence should apply to roads.

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It means that Australian road authorities now owe a duty of care to road users by exercising theirmaintenance powers to protect (the users) from foreseeable harm. Failure to effectively managethe maintenance of roads (and road-related assets) to an appropriate and affordable standardplaces authorities in a position of liability on the grounds of misfeasance. Fulfilling thisrequirement demands that road asset managers demonstrate they have processes and defendable

plans in place to demonstrate their intent to act responsibly.

The issues surrounding the management of risk are complex since they involve:

reasonable business processes

policy decisions

management decisions based on engineering analysis and risk management

court rulings on adequacy.

Fortunately, an appropriate risk management process has similar components to those used inasset management.

Asset owners, and delegated managers, should demonstrate compliance with the intent of the law.This means that certain proactive actions aimed at managing risk are necessary including:

regular inspections

managed asset information

maintenance standards, comprising the inspection periods, defect severity and responsetimes, developed through community input and aligned to available budget

established and documented business processes and management systems covering policydevelopment, asset monitoring, priority setting and decision making, resource allocation,program delivery and audit and incident response.

Thus risk management embraces all IAM Phases and is fundamental to the successful delivery ofoutcomes to the users. Provision to manage such risks should form an essential component of allasset management activities, with priority given to minimising operational risks.

2.6 Performance Monitor ing, Audi t and Feedback

As noted in Phases 6 and 7, monitoring of asset performance, audit of work carried out and reviewof performance achievement completes the cycle of asset management.

Asset performance is monitored by physical condition measurements of all asset classes (e.g.roughness, surface condition, strength, bridge strength, signage reflectivity). Monitoring processes

need to be selected to enable assessment of customer satisfaction, needs planning or riskassessment. Monitoring processes vary and must be selected or structured to provide relevantinformation at an affordable price.

Asset inventories must be updated to reflect completed work and new condition/inventorymeasures. Asset owners are provided with information from delivery function areas through asconstructed drawings and plans for ongoing asset maintenance requirements.


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Asset valuation is one method of monitoring asset management effectiveness and is also atechnique for facilitating the translation of engineering assessments into financial terms forconsideration at an accounting level. Various approaches to asset valuation exist, including bothcondition-based and age-based depreciation methods (Austroads 2000). Whilst no singleapproach is universally accepted, the condition-based approach is favoured by many asset

managers. However, commercial or technical obsolescence are also important factors.Differences in approaches also include how various asset classes and their component parts arevalued, e.g. separating the valuation of road surfacings, pavements and lower layers, dealing withland under roads, etc.

However, the main requirement is to achieve consistency in reporting asset values, includingtrends, and to allow the effect of investment strategies on future asset value to be determined.This aids effective communication with financial and general managers, as well as politicians whorepresent road users and the local community, and helps to ensure that road managementdecisions are made in a broad community context.

On completion of any asset management cycle, the agency should undertake a review of the

existing road asset performance, infrastructure strategies, and whether agency and stakeholderrequirements have been met or exceeded.

A key part of the asset management process is communication with stakeholders. Stakeholdersmay include politicians, other government agencies, industry, communities and road users.Communication with stakeholders may consist of seeking information (such as in setting levels ofintervention standards) or in providing information about a future program of investment.

Strategies for addressing the above requirements are detailed in other parts of the Guide to AssetManagement.

2.7 Use of Information Systems and Decision Support Tools

Information is fundamental to asset management and, as illustrated in Figure 2.5, is used in all IAMPhases to inform decisions and quantify the results of implementation. Essential informationincludes road asset inventories, asset condition, historical records of construction andmaintenance, traffic and other road use data, unit costs, etc. This data then helps inform theanalyses and decisions taken throughout the asset management process.

As technology has developed, more sophisticated and comprehensive road managementinformation systems, data bases and user tools to collect, store and process data have beenincorporated into asset management practice. Many agencies now use sophisticated pavementand bridge management systems to facilitate the management of large amounts of data and toautomate some of the analysis required as input to asset management decisions. These systems

have evolved to the point where they have significant potential to improve the overall effectivenessof the asset management process and communications with stakeholders.

However, substantial resources can be required to operate such systems effectively and care isneeded in their design and implementation.

A pragmatic approach to developing and implementing formal information systems and decisionsupport tools includes:

commitment to quality at all levels

clear system specification aligned to documented business processes including defining thescope based on intended use and the outputs users will require


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2.8 Continuous Improvement in Asset Management Practices andHuman Resource Skill Development

Options for greater efficiency, increased knowledge, better technology, training and the like. allneed to be pursued by agencies to achieve community benefits.

All planning processes existing within road authorities and corporate entities concerned with assetmanagement will benefit from an appraisal of current practice to review the need for improvements.

A business improvement program should be undertaken at periodic intervals. An assessment ofbusiness processes forms a core component of good practice in asset management. Specificprograms need to be tailored to meet the needs of particular organisations.

Such reviews can reveal blind spots in an organisations processes, or in the message theycommunicate. It offers a means of providing state-of-the art benchmarks and identifying possiblegaps.

Developing team and individual competency to achieve best practice requires a people centredapproach, in which it is essential to understand the roles and responsibilities to be filled and toestablish appropriate levels of asset management competencies.

The process for implementing an asset management system within an organisation is described inthe Integrated Asset Management Guidelines for Road Networks(Austroads 2002a).

Other organisations provide similar advice. For example, in their Transportation AssetManagement Guide, the American Association of State Highway and Transportation Officials(AASHTO 2002) recommends the application of a self-assessment process to help an authority tocharacterise its asset management practices and identify opportunities for improvement. TheAASHTO guide also reports a summary of the benchmarking exercise they undertook amongst

participating authorities, and this provides a point of reference for readers.


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3 THE AUSTROADS GUIDE TO ASSET MANAGEMENT

3.1 Structure

The Austroads Guide to Asset Management complements the other Austroads guides which

embrace a wide range of subjects and which are readily available, accessible and comprehensiveresource for practitioners. Austroads and others (e.g. state road authorities and industry) havecompiled a great deal of knowledge on the tools, techniques and practices associated with themanagement of physical road infrastructure. The Austroads Guide to Asset Managementassembles this knowledge into a single authoritative electronic guide comprising eight parts, asshown in Figure 3.1.

The target audience for the Guide to Asset Management includes all those involved with themanagement of the physical road and bridge infrastructure assets as well as industry, and studentsseeking to learn more about the fundamental concepts, principles, issues and proceduresassociated with the management of these assets.

The guide includes an introduction to asset management (this document) and offers guidance onhow to determine and plan to accommodate stakeholder/community expectations, formulate andreview asset strategies, develop works and investment programs, assess asset performance andundertake audit and asset valuation.

Each part of the guide is accompanied by commentaries identified within the text which amplifythe principles and processes by use of examples.

As part of a developing guide of live documents, it is recognised that there will be periodic revisionsto this peak document and other parts within the guide and that some previous Austroadspublications will be superseded by the Austroads Guide to Asset Management. The Austroadswebsite should be referenced (http://www.austroads.com.au) to ensure the reader is accessing the

latest version of this document.

It is also recognised that asset management procedures will vary between jurisdictions and that ina number of cases procedures may also be determined by central government agencies to ensureconsistent investment evaluation across portfolios. For this reason this guide does not prescribedetailed processes. Instead it seeks to introduce the overall general principles and process ofasset management in line with best practice and to offer guidance.


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AUSTROADS GUIDES

ASSET MANAGEMENT

BRIDGE TECHNOLOGY

PAVEMENT TECHNOLOGY

PROJECT DELIVERY

ROAD DESIGN

ROAD SAFETY

ROAD TRANSPORT PLANNING

ROAD TUNNELS

GUIDE TOASSET MANAGEMENT

PART 1:INTRODUCTION TOASSET MANAGEMENT

(INCLUDING SCOPE OF OTHER PARTS)

PART 2:COMMUNITY AND STAKEHOLDERREQUIREMENTS

PART 3: ASSET STRATEGIES

PART 4:PROGRAM DEVELOPMENT AND

IMPLEMENTATION

PART 5: PAVEMENT PERFORMANCE

SECTION 1:INTRODUCTION INCLUDING WHY WHAT HOW SCOPE & DEFINITION

PART 1INTRODUCTION TOASSET MANAGEMENT

SECTION 2:OVERVIEW OF KEYASSET MANAGEMENT PRINCIPLES AND PRACTICES

SECTION 3:THEAUSTROADS GUIDE TOASSET MANAGEMENT

PART 6: BRIDGE PERFORMANCE

PART 7: ROAD RELATEDASSETS PERFORMANCE

PART

8: ASSET

VALUATION AND

AUDIT

TRAFFIC MANAGEMENT

PROJECT EVALUATION

PART 1COMMENTARIES

COMMENTARY 1:CHARACTERISTICS AND EXAMPLE KRAS AND KPIS

COMMENTARY 2:INCREASING EFFICIENCY THROUGH ROAD USE MANAGEMENT

COMMENTARY 3:MANAGEMENT OF HEAVY VEHICLEACCESS

COMMENTARY 4:SERVICE LEVELS AND INTERVENTION LEVELS

COMMENTARY 5:WHOLE OF LIFE CYCLE COSTING

COMMENTARY 6:MANAGING RISKS

Figure 3.1: Structu re of Austroads Guide to Asset Management with focus on Part 1

3.2 Relationship to other Austroads Publications

The Austroads Guide to Asset Management is complemented by the Integrated AssetManagement Guidelines for Road Networks(Austroads 2002a). This describes the overallframework for road asset management adopted by Austroads members and provides guidance onthe effective implementation of asset management processes within a business. The IntegratedAsset Management Framework forms the basis for the process-based approach which is thefoundation of this guide, and its various parts.

The Guide to Asset Management supersedes the earlier Austroads publication the Road AssetManagement Guidelines(Austroads 1994).

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Additionally, decision makers will need to ensure other documents such as the Austroads guides toRoad Transport Planning, Project Evaluation and Road Safety are referred to where appropriate.

A Glossary of commonly-used terminology associated with asset management and other usefulinformation on the Australian and the New Zealand road systems is available on the Austroadswebsite (http://www.austroads.com.au).

3.3 Scope of other Parts of the Aust roads Guide to AssetManagement

This Introduction to the Austroads Guide to Asset Management presents the concepts and guidingprinciples of asset management. These components are then described in more detail in Parts 2to 8 of the guide. A summary of the scope of these documents is given below.

3.3.1 Part 2: Community and Stakeholder Requirements

The asset management planning process starts with the identification of organisational andstakeholder requirements, and this forms the core of Part 2.

Its aim is to foster good practice in the identification of road agency objectives, including how totake account of customer expectations, social and environmental issues, stakeholder input fromexternal agencies and government and organisational priorities.

Part 2 encourages the use of effective stakeholder consultation to help identify priorities, potentialissues, social impacts, opportunities, alternatives and solutions to problems, and helps to identifythose outcomes and levels of service which the community is prepared to pay for.

Guidance is given on how to present feedback and information to assist the community in this taskby including documentation about budget limitations and trade-offs implicit in the selection of levelsof service, including the impact of decisions on agency and road user costs in the longer term.

Part 2 also shows how information from the stakeholder / community consultation process can beintegrated into the objectives of the organisation. Part 2 provides guidance on how KeyPerformance Indicators (KPIs), otherwise known as performance measures, should be set tomonitor the effectiveness of the asset management process (the works program) towardsachieving the KPIs.

3.3.2 Part 3: Asset Strategies

Part 3 is concerned with the development of asset strategies. These asset strategies translateorganisational objectives into actions linked to defined KPIs. A complete set of strategies consistsof capital investment, infrastructure preservation and road use strategies.

It provides guidance on how to evaluate the strategic fit of investment needs with agency strategicplans, and how to ensure an equitable allocation of resources where resources are insufficient andprioritisation is necessary, taking due account of the organisations objectives and the broadobjective of minimising life cycle costs.

However, in keeping with the focus of the guide, which is primarily concerned with themanagement and preservation of current physical assets, it introduces those aspects of road usestrategies and capital investment strategies which are essential inputs to effective road assetmanagement.


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3.3.3 Part 4: Program Development and Implementation

Part 4 addresses the program development process, at which point asset strategies aretransformed into defined levels of service and works programs. Part 4 describes the process bywhich the type and quality of road-related asset that should be provided in a given set ofoperational circumstances (e.g. for a given demand) is defined by an agency.

Each road agency is encouraged to determine its own sets of performance standards, i.e.combining both quantitative indicators and criteria, based on community consultation, economicanalysis, existing road standards, and budgetary expectations.

Part 4 provides guidance on how intervention criteria may be employed in assessing the currentperformance of an existing road-related asset against the target asset performance. It alsoexplains how such criteria are used to identify performance gaps that can then be addressed byconstruction and preservation activities and road use policy interventions.

This then leads on to program development at which point an agency identifies intervention optionsto close the asset performance gaps. These intervention options will comprise the total needs

program.

3.3.4 Parts 5, 6 and 7: Asset Performance

Part 5 provides guidance on the establishment and maintenance of asset inventories, and on themonitoring of asset performance. It discusses the need for agencies to measure assetperformance against objectives, and therefore is primarily concerned with condition data collectionand performance modelling at a network level. Sub-parts include:

Part 5A: Inventory

Part 5B: Roughness

Part 5C: Rutting

Part 5D: Strength

Part 5E: Cracking

Part 5F: Skid Resistance

Part 5G: Texture

Part 5H: Performance Modelling.

Bridges are covered in Part 6 and other road related assets in Part 7.

3.3.5 Part 8: Asset Valuation and Audit

Part 8 provides guidance on how to undertake asset valuation, since such information can providethe asset manager with valuable insights into the long-term management requirements.

It also provides guidance on how to implement an audit process to ensure work activities reflect theworks program and satisfy the asset and organisational strategies (and in turn stakeholderrequirements).

Finally, Part 8 describes approaches to presenting information to external stakeholders and othercustomers by means of public reports and other media.


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REFERENCES

AASHTO 2002, Transportation asset management guide,American Association of State Highway andTransportation Officials, Washington DC.

Australian Transport Council 2004, National guidelines for transport system management in Australia, 3vols.,Australian Transport Council, Canberra, ACT.

Austroads 1994, Road Asset Management Guidelines,AP-109/94, Austroads, Sydney, NSW.

Austroads, 2000, Valuation of Road Infrastructure Assets in Australia and New Zealand,by LB Dowling, AP-144/00, Austroads, Sydney, NSW.

Austroads 2001,Australian and New Zealand Road System and Road Authorities: National PerformanceIndicators 2000,AP-43/01, Austroads, Sydney, NSW.

Austroads 2002a, Integrated Asset Management Guidelines for Road Networks,by R Grove, F Mihai, PAppleby, M Bishop, K Eckeroth, L Leong, D Radcliffe & P Shepherd, AP-R202/02, Austroads, Sydney,NSW.

Austroads 2002b, Guidelines for Community Input in Setting Level of Service and Intervention Standards forRoad Networks,R Grove, F Mihai, P Appleby, M Bishop, K Eckeroth, & P Shepherd, AP-R201/02,Austroads, Sydney, NSW.

Austroads 2004a, Pavement Rehabilitation: A Guide to the Design of Rehabilitation Treatments for RoadPavements, AP-G78/04, Austroads, Sydney, NSW.

Austroads 2004b, Pavement Design: A Guide to the Structural Design of Road Pavements, AP-G17/04,Austroads, Sydney, NSW.

Austroads 2006, Maintenance Techniques to Reduce Social and Environmental Impacts,by J McRobert & NHoughton, AP-R291/06, Austroads, Sydney, NSW.

INGENIUM & IPWEA 2002, International infrastructure management manual,Association of LocalGovernment Engineering of New Zealand Inc (INGENIUM), Thames, New Zealand, & Institute ofPublic Works Engineering Australia, Sydney, NSW.

Kerali, HRG 2000, HDM-4: Highway Development and Management: volume one: overview of HDM-4, World RoadAssociation (PIARC), Paris.

Martin, TC, Toole, T, & Oliver, JWH 2004, The development of HDM-4 technology road deterioration modelsfor Australias sealed granular pavements, International Conference on Managing Pavements, 6th,

2004 Brisbane, Australia, Queensland Department of Main Roads, Brisbane, Qld., 19p.

Oliver, JWH 2004, Prediction of the life of sprayed seals and the effect of climate, bitumen durability andseal size,International Conference on Managing Pavements, 6th, 2004 Brisbane, Australia,Queensland Department of Main Roads, Brisbane, Qld., 13p.

Prem, H, de Pont, J, Pearson, B & McLean, J 2002, Performance characteristics of the Australian heavyvehicle fleet,National Road Transport Commission, Melbourne, Vic.


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Queensland Department of Main Roads 2002, Roads connecting Queenslanders: a strategic long-termdirection for the Queensland road system and Main Roads,Queensland Department of Main Roads,Brisbane, Qld.

Queensland Department of Main Roads., Road System and Engineering Group 2005, Traffic and road usemanagement manual,Queensland Department of Main Roads, Brisbane, Qld.

Queensland Transport & Queensland Department of Main Roads 2000, 4Seeable futures: transport portfolioscenario-based planning for Queensland Transport and Queensland Department of Main Roads 2000

2025,Queensland Department of Main Roads, Brisbane, Qld.

Robinson, R, Danielson, U, & Snaith, MS 1998, Road maintenance management: concepts and systems,Macmillan, London.

Standards Australia & Standards New Zealand 1999, Risk management,AS/NZS 4360:1999, StandardsAustralia, Strathfield, NSW.

Transit New Zealand 2001,Annual report, 2000/01,Transit New Zealand, Wellington.

TRL Overseas Centre, 1998, Guidelines for the design and operation of road management systems,overseas road note 15, Transport Research Laboratory, Crowthorne, UK.

Tsolakis, D, Rockliffe, N & Patrick, S 2003, Triple bottom line evaluation of transport proposals, researchreport ARR 359, ARRB Transport Research, Vermont South, Vic.

Tsolakis, D, Thoresen, T, 1998, A framework for demonstrating that road performance meets communityexpectations, working document WD R98/003, ARRB Transport Research, Vermont South, Vic.

VicRoads 1993, A stitch in time: Victorias road maintenance strategy,VicRoads, Kew, Vic.

VicRoads 2003, Program development guidelines,VicRoads, Road System Management, Kew, Vic.

VicRoads 2004a, VicRoads road management plan,VicRoads, Kew, Vic.

VicRoads 2004b,Annual report, 2003/04,VicRoads, Kew, Vic.


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COMMENTARY 1 CHARACTERISTICS AND EXAMPLE KRASAND KPIS

Whatever objectives are chosen, it is important they are designed so that they can be translated toKey Results Areas (KRAs) and subsequently framed, as closely as possible, in terms ofmeasurable key performance indicators (KPIs). For this to occur, KPIs should ideally have thefollowing characteristics:

They should be directly relevantto the assessment of current asset condition, to facilitationof asset management and to prediction of future asset performance.

They should be capable of being managed by the agency.

They should include objective, quantitative measures, whose derivation is clearlyunderstood and whose accuracy is widely accepted.

Their procurement should be affordableand not impose excessive costs on roadmanagement agencies or companies.

The specified criterion associated with each measure should be achievablewithin theforeseeable future, and be established with funding availability in mind.

They should be repeatable, and reproducible.

Considering the various points, the following observations can be made:

There is no point in measuring things that do not matter, or achieving a degree of accuracythat is not necessary.

Where multiple factors play a role, as in the case of road crashes, the road authority shouldat least aim to monitor rates and trends and include such statistics in annual reports.

Quantitative assessments employing national or internationally accepted standards of

measurement and recognised calibration or verification procedures will be appropriate inmany cases. However, the results of properly designed qualitative surveys which seek useropinion and feedback are also valuable. See for example Austroads (2002b).

Direct measurement and reporting of specific parameters is preferred over the use ofcomposite indices, as the latter tend to mask the contributions of various factors, making itdifficult to plan and manage corrective actions.

Some authorities also choose to distinguish between management performance measures, androad condition measures. In the latter case the measures will also vary and typically reflect thefactors considered important to asset management in each jurisdiction. For example, Transit NewZealand (2001) reports specific distresses, such as excessive rutting or poor skid resistance. In

other circumstances, surfacing age is used as an indicator of the health of a network, having beenassociated with the durability of surfacings in different climatic environments (Oliver 2004).

Examples of KRAs and KPIs reported by VicRoads (2004b) and which extend to considercommunity and environment indicators for transport infrastructure are shown in Table C1 1together with published policy objectives and key results areas which are establishedorganisation-wide.


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Table C1 1: Example asset management KRAs and KPIs for transport in frastructure

Policy objectives

Achieve reductions in road crashes and the cost of road trauma

Assist economic and regional development by improving the effectiveness and efficiency of the road transport system

Develop a more integrated and sustainable road transport system

Minimise the impacts of roads and traffic on the community and the environment

Build effective, equitable and efficient relationships with customers by providing suitable access to services in order toassess both road system and road agency performance.

Key results areas

Road safety

Road system management

Traffic and transport integration

Registration and licensing

Organisational performance

Financial performance

Example KPIs for road system managementCondition of the network

Proportion of travel on smooth roads

Proportion of network with very rough roads

% of bridges subject to mass limits

% of bridges in very poor structural condition.

Construction and maintenance

Proportion of network resurfaced

Proportion of network rehabilitated

Estimated return on economic investment.

Environmental and community

Number of community consultation plans prepared

Number and type of environmental incidents

Percentage of road network with roadside management plans.

Source: After VicRoads (2004b).


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COMMENTARY 2 INCREASING EFFICIENCY THROUGH ROADUSE MANAGEMENT

As the total transport task is becoming larger in volume, and many vehicles are heavier and largerin size, the growth in road traffic continues to outstrip the ability of the community to financeadditional asset provision. Therefore, an asset manager is concerned to ensure the effective use ofcurrent assets. The complementary application of road use management (RUM) strategies andactions may help limit the rate of asset consumption and optimise use of current assets. A list ofexamples of RUM strategies and how they relate to asset management issues is contained inTable C2 1below.

Considering RUM as a complementary activity to road infrastructure asset management providesthe asset manager with a wider range of solutions. It also encourages the adoption of integratedpolicies and strategies.

Table C2 1lists a range of common problems and possible RUM interventions.

Table C2 1: Management of road use

Problem Possible RUM interventions

High vehicle loadings leading topotential for excessive deteriorationand high rate of asset consumption

Limiting the loading on roads and bridges by regulation, legislation and surveillance

Promoting use of alternative routes which possess sufficient capacity

Poor utilisation of existing capacity Improved traffic control and signal coordination

Better route signing and travel information

Introduction of performance-based standards (PBS) approaches to management ofheavy vehicle access (see Commentary 3)

Temporary closure or reduced level ofservice

Improved incident and emergency response strategies

Improved work zone

Excessive demand Pricing and charging policies

Measures to encourage high vehicle occupancy

Promotion of alternative transport modes

Excessive travel time caused byrelative location of social andproductive activities

Improved strategic planning and land use planning

Comprehensive guidelines for traffic and road use management have been developed in a numberof jurisdictions, e.g. in Queensland (QDMR 2005), and further examples exist of improvedstrategies to manage highly-utilised facilities.


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COMMENTARY 3 MANAGEMENT OF HEAVY VEHICLEACCESS

Managing heavy vehicle access to the road network is currently governed through regulationsrelating to permissible mass limits, dimensions and configurations and is a key component of anoverall road system management strategy. This helps to ensure appropriate levels of safety, andto limit environmental impacts and damage to road infrastructure.

The current regulatory system typically comprises general access, public notices and permitoperations. General access regulations are broadly similar across jurisdictions in the interests ofconsistency and a common national transport policy.

The rate of consumption of pavement assets, which accounts for a significant proportion of totalinfrastructure replacement costs, is generally accepted to be proportional to the number ofequivalent standard axle repetitions applied by heavy vehicles.

For general application, the relative damaging effect of each axle pass is determined based on the

ratio of the actual axle load and a standard load raised to the fourth power. However, a widerrange of exponents of between 4 and 12 may be applicable depending on pavement configurationand distress mode (Austroads 2004b).

Many roads which carry a significant proportion of total freight have evolved over time, usually fromaccess tracks, and have not been designed either in a pavements or geometric sense.Additionally, Australia and New Zealand have extensively used relatively low cost chip-sealed,granular pavements which require careful management to ensure optimal lives are obtained.

The challenge faced by both regulators and asset managers has been to develop strategies to helpaccommodate the significant growth in the road transport task. Simply extending or adding newinfrastructure has not been possible because of economic, environmental, land use and social

factors. Previous solutions have been very ad hoc and have lead to some unplanned outcomes.

To gain more productivity from the road network, the adoption of an alternative performance-basedstandards (or PBS) approach to regulation has been proposed so that the interactions betweenvehicles, infrastructure standards, traffic conditions and freight or passenger tasks can be morereadily taken into account.

The key issues which require consideration from an asset management perspective include:

having sufficient knowledge of the performance of the existing infrastructure system to beable to predict the consequences of adopting a new system

determining the standards to be adopted and how they relate to current regulations and theobserved behaviour and interactions between vehicles and infrastructure

assessing the costs and benefits which would result to vehicle operators and assetmanagers, and what trade-offs are acceptable.

Whilst the current regulatory system remains in place, Australian Transport Ministers haveapproved a set of 20 standards, comprising 16 safety standards and four infrastructure protectionstandards (see details in Prem et al. 2002). These provide an optional alternative to the currentprescriptive standard. Introduction of the PBS is currently the subject of study and review andagreement. Once implemented, considerable productivity benefits should result.


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COMMENTARY 4 SERVICE LEVELS AND INTERVENTIONLEVELS

C4.1 Service Levels

The terms service level, or level of service, describe the quality of service provided by the assetfor the benefit of the customers. Road agencies usually define levels of service in terms of theconvenience of travel and the safety performance of the road network. Depending upon demandor strategic importance, a higher level of service may be required for some assets compared toothers.

For example, ride quality (qualitative) and road roughness (quantitative assessment of ride quality)are two asset management service level measures. The road operating condition can generally bedefined as smooth, rough or desirable and an agency must decide what standard of ridequality/roughness is acceptable for specific road classes and/or road use. Most communitiesagree that it is appropriate to have a hierarchy of levels of service such that (in this example) roadswith higher demand levels would be maintained to a smoother standard.

Roughness is a prime factor in determining vehicle operating costs and consequently an input todetermining the timing of treatment interventions aimed at minimising total transport costs (seealso WOLCC in Commentary 5). In traffic engineering, the term level of service is used todescribe the operating conditions within a traffic stream, and relates to the congestion performanceor traffic capacity of a road. Road agencies have adopted the term and associated measures asone component of the quality of service provided by the asset for the benefit of the customers. Forthe purpose of the Austroads Guide to Asset Management, levels of service is used in its broaderform. Levels of service enable an agency to:

document and measure the service provided

evaluate service versus cost trade-offs

establish what is important to the customer

link operational activities with organisational strategic goals.

C4.2 Intervention Levels and Gap Analysis

Intervention levels are specified condition parameters (usually limiting values) which, if exceeded,trigger a maintenance investigation. The process of comparing the existing asset condition withthe desired condition is called gap analysis. However, just because a gap is identified, does notmean that an action/project must be in

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