Whole-Life Value-Based Decision-Making in Asset Management

Contents About the authors vii
1 Introduction 1
1.1 Purpose of this guide 1
1.2 Intended audience 1
1.3 Document structure 2
Reference 2
2 Value-based asset management 3
2.1 Introduction 3
2.2 Challenges in infrastructure asset
management 3
2.3 Value 4
2.4 Whole-life asset management 6
2.5 Benefits of value-based asset management
decisions 8
References 9
3 The value-based decision-making process:
An overview 11
3.1 Rationale for a structured approach 11
3.2 Methodology 11
3.3 Overview of the process 12
References 14
4 Stage A: Establish the context 15
4.1 A1: Set the objectives and scope 15
4.2 A2: Define the problem statement 16
4.3 A3: Determine the time period for evaluation 17
Reference 17
5 Stage B: Develop the value map 19
5.1 Value map 19
5.2 B1: Identify the stakeholders 21
5.3 B2: Identify stakeholders’ requirements and
objectives 22
5.4 B3: Identify the value drivers that contribute
to stakeholders’ requirements 22
5.5 B4: Identify the value metrics to assess each
value driver 25
5.6 B5: Determine how the asset can directly
influence each of the value metrics 27
5.7 B6: Determine how the asset can indirectly
influence each of the value metrics 30
5.8 B7: Determine the external factors that
influence asset and value metrics 30
5.9 B8: Determine the various intervention and
control options 33
5.10 B9: Identify and map the links between the
various value-generation factors 33
5.11 B10: Determine the factors that can influence
the decisions 37
References 37
6 Stage C: Assess and optimise value 39
6.1 Introduction 39
6.2 C1: Identify the modelling requirements 40
6.3 C2: Develop the model 41
6.4 C3: Identify the best solution 44
6.5 C4: Perform sensitivity analysis 47
References 47
7 Case studies 49
7.1 Introduction 49
7.2 Case study 1 49
7.3 Case study 2 66
Reference 79
8 Conclusions and recommendations 81
Index 83