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FHWA > Asset Management > AM Position Paper > Planning and Asset Management |
FHWA Asset Management Position PaperPlanning and Asset ManagementThe purpose of this paper is to define the relationship between transportation asset management and transportation system planning and to describe the current, and potential future, activities of the FHWA Office of Planning that support the implementation of asset management. The paper is one of a set of seven papers exploring the relationship of asset management to each of FHWA's major program areas including planning, right-of-way, environment, infrastructure, safety, operations, and Federal lands. Section 1.0 provides a general overview of asset management relevant to all program areas. Section 2.0 defines the relationship between planning and asset management. Section 3.0 describes current, and potential future, activities of the Office of Planning that support asset management. 1.0 Overview of Transportation Asset Management1.1 Definition of Asset ManagementTransportation asset management is a set of guiding principles and best practice methods for making informed transportation resource allocation decisions, and improving accountability for these decisions. The term "resource allocation" covers not only allocation of money to program areas, projects, and activities but also covers deployment of other resources that add value (staff, equipment, materials, information, real estate, etc.). While several of these principles and practices were initially developed and applied within the domain of infrastructure preservation, most established definitions of asset management are considerably broader. The Asset Management Guide,[1] recently adopted by AASHTO defines asset management as: "... a strategic approach to managing transportation infrastructure. It focuses on...business processes for resource allocation and utilization with the objective of better decision-making based upon quality information and well-defined objectives."As Mary Peters, FHWA Administrator has frequently put it: "If I have one additional dollar to spend on the transportation system, what is the most effective way to spend it?"The essence of asset management is answering that question. Asset management is concerned with the entire life cycle of transportation decisions, including planning, programming, construction, maintenance, and operations. It emphasizes integration across these functions, reinforcing the fact that actions taken across this life cycle are interrelated. It also recognizes that investments in transportation assets must be made considering a broad set of objectives, including physical preservation, congestion relief, safety, security, economic productivity, and environmental stewardship. 1.2 Asset Management Principles
These principles are not unfamiliar, nor are they radical. Most transportation practitioners would agree that investment decisions should be based on weighing costs against likely outcomes, that a variety of options should be considered and evaluated, and that quality information is needed for decision-making. Many agencies are now pursuing performance-based approaches to planning and programming, monitoring system performance, and developing more integrated data and analysis tools to evaluate tradeoffs among capital expansion, operations, and preservation activities. Most agencies recognize that application of asset management principles is critical in times of constrained resources, when all investment and budget decisions are subject to increased public scrutiny. 1.3 Asset Management PracticeFigure 1 illustrates the strategic resource allocation process that embodies the asset management principles presented above.
1.4 Transportation Investment CategoriesIn Figure 1, the box labeled "Analysis of Options and Tradeoffs" shows three types of investment categories - preservation, operations, and capacity expansion. These are defined as follows:
These three categories are defined in order to show that:
As noted above, tradeoff analysis may be done across investment categories as well as within them. An agency might wish to define investment areas coincident with the three categories discussed above (preservation, operations, capacity), or they may define a different set of categories. For example, a safety program could be defined as an investment category, with subareas for operational activities (e.g., signs, markings, signalization, channelization, etc.), preservation (replacement of guardrails), and capacity (project design features supporting safety, e.g., wide shoulders). This would provide the framework for understanding the best mix of complementary actions within the safety area as well as tradeoffs between safety and other objectives. 1.5 Asset Management and the Transportation Planning ProcessA common reaction to the broad description of asset management is "how is this different from the overall planning and programming process in an agency?" The response is that asset management is not a new kind of business process that replaces planning and programming. Rather, it should be viewed as a set of best practices to be employed within the established planning and programming framework. Existing regulations pertaining to the planning process, together with statutes related to specific funding programs and their allocation criteria, and the body of environmental regulations affecting transportation planning - provide the context within which asset management practice occurs. In terms of Figure 1, transportation regulations and statutes impact establishment of policy objectives, the manner in which options are generated and evaluated, and they also provide certain constraints on resource allocation (based on Federal and state funding eligibility restrictions). Many of the core principles of asset management are embodied in the existing planning regulations (e.g., consideration of alternatives). Examining the planning process using the lens of asset management provides an opportunity to explore ways to continue to strengthen the mission of transportation planning - for example:
While asset management is closely associated with planning and programming activities, asset management best practices are also integral to design, construction, routine and preventive maintenance and operations activities. For example:
1.6 Key OpportunitiesDespite the support for taking an asset management approach, many agencies face very real organizational, institutional, and technical challenges to making further progress in asset management. Each one of these challenges represents a potential opportunity for FHWA to work with its partners to encourage broader implementation of asset management principles. For example:
While it is relatively straightforward to implement asset management within a well-defined area of the agency (a pavement management unit, for example), the issues identified above illustrate why it is much more challenging to implement it more fully within an agency, or across multiple agencies. However, the need to allocate scarce resources as effectively as possible and demonstrate results and performance to the customers of the transportation system provides strong motivation and support for overcoming these challenges. A comprehensive, performance-based approach to transportation investment decisions will be essential to meeting the increasingly complex set of transportation needs of the 21st century. 2.0 Planning and Transportation Asset ManagementAs Section 1.5 described, asset management principles and how they should be applied in the strategic resource allocation process sounds remarkably similar to good transportation system planning and particularly performance-based planning and programming. Therefore it is worth repeating that asset management is not a new or separate function but a set of best practice principles to be integrated into existing planning and programming processes. Figure 2 taken from the National Highway Institute/National Transit Institute (NHI/NTI) training course on statewide transportation planning is clearly very consistent with Figure 1 defining a broad strategic resource allocation process. However, as noted earlier, asset management principles also can be integrated into other functions beyond planning including operations, maintenance, design, construction and right-of-way. The purpose of this section is to define the relationship between planning and asset management. It is written from the perspective of an operating agency (e.g., state DOT). Because many of the principles of asset management also could describe good planning practice, and in fact are reflected in both statute and regulation to a degree, the focus will be on how these principles can be further strengthened within the planning process. However, reflecting asset management principles in planning, if planning in turn does not directly impact resource allocation and other programmatic and project decisions, will have limited value. Thus the need to have planning closely integrated with programming and budgeting processes will also be explored. 2.1 Overview of Planning ActivitiesThe planning function covers a diverse set of activities that focus on different transportation modes and systems, timeframes, geographic scales, policy issues and stakeholder groups. Many planning requirements, including some that support good asset management, are defined in Federal statute and regulation, and are consistent, at least as requirements, across all states. However, there are many other aspects of a particular state's planning process that reflect state and local requirements and tradition, and actual planning practice varies widely. Typical activities performed by the planning function in many states include:
While asset management principles can be integrated into most of these activities to some extent, there are several key planning functions and activities where asset management principles are likely to have the most impact and where the current state of practice could be strengthened significantly. These activities include:
2.2 Relationship to Transportation Investment AreasIn terms of the strategic resource allocation process described earlier, planning is the logical function to define and analyze key system- and program-level tradeoffs as part of long-range planning, programming and budgeting. While historically long-range planning has focused on capacity expansion and capital projects, the planning process must focus on the full set of investment choices in order for asset management principles to be reflected in the highest-level program tradeoffs. Ongoing initiatives related to operations planning, freight planning and safety conscious planning reflect a broadening of planning activities occurring at the Federal, state and regional levels. As discussed earlier, decisions about the appropriate investment levels in each program area are not independent and always made in the face of budget constraints. PreservationThe implications of various funding levels for the preservation of major infrastructure including pavements and bridges on the highway side and other state-owned facilities for other modes are routinely a component of long-range transportation plans and needs analyses. While historically, management systems have not always been used to drive these analyses, increasingly these tools are being used to evaluate budget/condition tradeoffs. In addition to heavy infrastructure, the facilities and equipment needed to monitor and operate the system must also be considered. OperationsInitiatives related to operations planning, freight planning, and safety conscious planning are increasing the consideration of operations programs and operations expenditures in the planning process. For long-range planning there is a need to examine operations strategies as potential substitutes for, or complements to, capacity expansion actions. Similarly, the need for an increase in operations program expenditures as system expansion occurs over the long term also must be addressed. Operations planning activities that focus on the near-term, real-time operation of the system are typically separated from the broader long-term system planning function. Capacity ExpansionCapacity expansion and capital project programming and development have been the key focus of planning activities historically and will continue to be a key element of effective long-range planning. Initiatives related to environmental streamlining, environmental stewardship and context sensitive design all impact the cost and time associated with developing and implementing capacity expansion projects. 2.3 Application of Asset Management Principles to PlanningThe overlap between asset management principles and good planning practice has already been acknowledged. This section simply summarizes the connection between these principles and planning practice. Policy-DrivenGoals and objectives are typically established as part of the long-range planning process including extensive stakeholder and partner involvement and coordination. Asset management principles suggest that these goals and objectives cover the full set of transportation policies of concern and guide the development and implementation of plans and programs, provide a framework for establishing performance measures and directly influence budget decisions. The range of goals and objectives that might be included in a typical state DOT long-range plan include:
The number and focus of the goals and objectives adopted in any state or region will vary, but they need to emerge from a long-range planning process that includes significant public participation. Typically gaining acceptance of a broad set of transportation goals is not difficult, however gaining consensus on the appropriate balance among inherently conflicting goals and objectives is the key challenge and focus of the planning and strategic resource allocation processes. Performance-BasedSpecific performance measures need to be identified for each policy goal and objective in order to define how goal achievement is going to be determined and monitored over time. Just as goals and objectives must be developed as part of an ongoing transportation planning process, performance measures related to those goals help evaluate and communicate the impacts and implications of different plan alternatives. Similarly in the strategic resource allocation and budgeting process, performance measures provide the criteria for analyzing and evaluating tradeoffs. Determining the appropriate number and type of performance measures at different levels of decision-making is a key challenge to operationalize this principle of good asset management. The notion that at its essence asset management is really "total performance management" derives from the critical role that performance measurement plays in implementing the concepts of asset management. Performance-based planning and performance-based programming are essential components of asset management and all rely on specification of performance measures that reflect key policy goals. A wide range of performance measures have been adopted by transportation agencies and the list of candidate measures below is just illustrative:
Analysis of Options and TradeoffsThe essence of good planning is the analysis of options and tradeoffs. However, at the strategic resource allocation level this analysis needs to consider tradeoffs across all major investment categories including preservation, operations and capacity expansion. The system planning process is the most appropriate place for this comprehensive analysis to occur. Typical tradeoffs might include:
Decisions Based on Merit and Quality InformationA key element of planning is the collection, management and analysis of a broad range of different data sets. While the planning function is often not the "owner" of some important data sets (e.g., facility condition and performance, safety, maintenance, financial, etc.), planning is often the function that integrates data from a wide range of sources and is a key customer for data from a wide variety of sources both within and outside an agency. Similarly, a wide variety of models and analysis tools are needed to do good planning and to establish a link to programming and ownership and maintenance of some of these tools also may be the responsibility of other units. Effective display and communication of data and technical analyses increasingly is viewed as critical as the analysis itself in supporting decision-making. Monitoring and FeedbackMonitoring and reporting on system performance and conditions over time is often the responsibility of different organizational units within an operating agency. For real-time system conditions, an operations unit or traffic management center is typically responsible. Similarly, infrastructure condition is generally tracked by engineering, maintenance and district/regional offices. Nonetheless, the planning function is often involved in, if not leading, efforts to periodically report on system conditions and performance via annual performance reports or more frequent reporting via web sites, etc. In addition, in plan update cycles, programming and the budgeting process it is often the planning function that provides the feedback necessary to make adjustments based on actual versus predicted results and targets. 3.0 FHWA Office of Planning - Current and Future Activities in Support of Asset ManagementThe section describes current activities of the FHWA Office of Planning that are supportive of asset management, and identify potential additional opportunities for the future. 3.1 Current and Planned ActivitiesThe Office of Planning is organized into two teams. The Planning Oversight and Stewardship Team provides transportation planning program assistance and guidance to the Division Offices in the administration of the various transportation planning and programming elements of the Federal-aid Highway Program. In addition, the team closely collaborates with FTA's Office of Systems Planning in developing and disseminating mechanisms and tools to increase the efficiency, timeliness, and consistency of Federal oversight and stewardship of statewide and metropolitan transportation planning processes. The Planning Capacity Building Team is focused on improving the state of the practice through the development and dissemination of best practice information, peer reviews and conferences and by supporting the development of improved planning methods and tools. Staff from both teams are involved in a number of initiatives that directly support incorporating asset management principles in the planning process. Again, it should be stressed that since there is a strong overlap between asset management principles and good planning practice, the issue is how the planning process can be strengthened to encourage both good planning and good asset management. A number of the key activities in the Office of Planning that support asset management are listed below. Policy and RegulatoryGuidelines for state and metropolitan planning reflect a number of the principles of asset management including defining policy directions as a part of the long-range planning process based on extensive stakeholder involvement, use of performance measures, examination of the full range of alternatives including multimodal and intermodal solutions, and recognition of realistic funding constraints. Periodic planning reviews at both the state and metropolitan levels offer opportunities to assess an agency's current efforts in following guidelines and regulations and offer suggestions for further strengthening these efforts. Technical Assistance and Information DisseminationA wide range of efforts are being undertaken in the Office of Planning to provide technical assistance and information directly related to asset management including:
Research and TechnologyA number of areas of research and development undertaken by the Office of Planning support improved asset management including:
CoordinationThe Office of Planning is working with a number of other offices and program areas to develop coordinated strategies and joint efforts. A number of these initiatives can support better asset management and reflect the fact that a truly comprehensive planning process is the logical place to integrate issues and address tradeoffs that have often been addressed somewhat independently in separate functional areas.
3.2 Potential Future ActivitiesBuilding on many activities that already are underway, including joint efforts with the Offices of Operations, Safety and Asset Management, the Office of Planning can take a number of steps to further strengthen the relationship between planning and asset management. Some of these activities include:
[1] Transportation Asset Management Guide, prepared for the National Cooperative Highway Research Program (NCHRP) Project 20-24(11) by Cambridge Systematics, Inc. with Parsons Brinckerhoff Quade & Douglas, Inc., Roy Jorgensen Associates, Inc. and Paul D. Thompson, November 2002, AASHTO Publication RP-TAMG-1. [2] The FHWA plays a key role in standardizing the content and format of data that are mandated by federal law: e.g., the National Bridge Inventory (NBI) data that are reported by state DOTs. |
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This page last modified on 10/15/08 |