Potential Funding: Unspecified
With the current financial state and shrinkage of resources, there is an urgent need to know what is the value and future cost of maintaining assets. Maintaining assets have an obvious value, but there is a cost associated with both choosing to maintain assets, as well as a cost associated with choosing not to do so. Attempting to determine the expected long-term costs of maintaining an asset, as well as the predicted value of having a well-maintained asset, is a considerable challenge for a transportation agency.Objectives:
The objective for this research is to examine the costs and value associated with maintaining assets, and then to develop a usable model for forecasting the cost and value. Such a model must include, but not be limited to:
• A framework for quantitatively assessing the value of an asset that has been properly maintained.
• A tool for calculating the long-term costs of maintaining an asset, in line with industry standards for safety and reliability.
In addition to developing the model, the research should also establish guidance targeted at helping practitioners conduct forecasting analyses and communicate the results.
The proposed research will:
• Conduct a literature review, and well as a review of current practices.
• Develop a forecasting model for the costs and value of maintaining assets, as described in the objectives.
• Perform a series of pilots illustrating the effectiveness and usefulness of the model.
• Prepare a final report incorporating the guidance document and detailing the research performed as part of the project
Duration: 18 months
Project Budget: $150,000
Topics: Analytical Tools and Models
Subjects: Life Cycle Costing/Economic Analysis