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Multi-Year, Multi-Constraint Strategy to Optimize Linear Assets Based on Life Cycle Costs Keivan Neshvadian, Ph.D. Transportation Consultant July 2016 © 2016 AgileAssets Inc. All Rights Reserved

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Page 1: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Multi-Year, Multi-Constraint Strategy to

Optimize Linear Assets Based on Life Cycle Costs

Keivan Neshvadian, Ph.D. Transportation Consultant

July 2016

© 2016 AgileAssets Inc. All Rights Reserved

Page 2: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Pavement Asset Managment

• Pavement management is the process of planning the maintenance and rehabilitations of a network of roadways in order to optimize pavement condition and cost over the entire network.

© 2016 AgileAssets Inc. All Rights Reserved 2

Optimization

Cost $ Condition

Service Life

Page 3: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

NEED for PMS

• Transportation infrastructures represent a very large amount of investment.

• Preservation of these assets implies continuous investments to achieve serviceability, safety ,life span.

• In the US, an estimated $91 billion is budgeted to maintain highway pavements, but there is still a shortfall of $89 billion annually — leading to a decline in condition and performance of pavements (*)

*. ASCE, 2013 Report Card for America’s Infrastructure, American Society of Civil Engineers

© 2016 AgileAssets Inc. All Rights Reserved 3

Page 4: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

PMS Outputs : What Where When

• Desired Output is a Work Plan

• Modern PMS assist decision makers in determining “what treatment, when, and where?” by optimizing pavement network work plans under budgetary and other agency constraints and objectives.

© 2016 AgileAssets Inc. All Rights Reserved 4

Page 5: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Common Analysis Methods

• Worst First Method • Ranking (Benefit/Cost) • Optimization Multi Constraint (Sequential Opt.) • Optimization Multi Year (Holistic Opt.)

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Page 6: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

WORST FIRST

• Overly simplistic • Spending the budget mostly on first years • Ignoring Preventive Maintenance • Not Optimized

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Page 7: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Ranking

• Benefit Cost Analysis (BCA) • Has been widely used by several transportation agencies • Not too complex to implement and understand • Cannot solve problems with multiple overlapping

constraints • It is not optimized

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Page 8: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Need for Multiple Overlapping Constraints

– No budget in first year, X dollar in second year, Y dollar in third year

– PCI>75 for district A and PCI>80 for district B etc.

– Constrains that targets different roadway classes (Interstate,

Primary Roads, Secondary Roads)

– PCI>75 for 80% or more of the network and not more than 10% of the network to have PCI<25

© 2016 AgileAssets Inc. All Rights Reserved 8

Page 9: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Ranking

Sections Treatment Cost Benefit B/C (X100) Selected

1 T1 $40,000 1400 3.50 2 T2 $220,000 7500 3.41 3 T3 $80,000 2700 3.38 4 T4 $150,000 4800 3.20 5 T5 $15,000 450 3.00

© 2016 AgileAssets Inc. All Rights Reserved 9

Total Spent : 135,000 $ (55%)

Sum of Benefit : 4550 Total Spent : 245,000 $ (98%)

Sum of Benefit : 7950

• Available Budget is 250,000 $

Sections Treatment Cost Benefit B/C (X100) Selected

1 T1 $40,000 1400 3.50 2 T2 $220,000 7500 3.41 3 T3 $80,000 2700 3.38 4 T4 $150,000 4800 3.20 5 T5 $15,000 450 3.00

$40,000 1400 3.50 x

$80,000 2700 3.38 x

$15,000 450 3.00 x

$80,000 2700 3.38 x $150,000 4800 3.20 x $15,000 450 3.00 x

* Benefit is defined as the area under the condition curve for each segment (Sum of condition score over service time)

Page 10: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Optimization

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• Optimization checks different combo of Treatments in different years and solve for best sets of Projects

• Optimization can analyze problems that B/C ranking cannot tackle

• Optimization can handle Multiple overlapping constraints • The solution is a real work plan with identified sections and

treatments

Page 11: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Multi Constraint Optimization

• Multi Constraint : Year by year analysis . Start with recommending a treatment for each section for each year (Sequential)

• Multi Constraint analyzes each single year discretely.

• Multi Constraint solution is optimal in each year.

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Page 12: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Multi - Constraint Analysis

Year No 1

12

Network (Management

Sections)

Section 1

Section 2

Section 3

Section 4

Section 5

.

.

.

Decision Tree

Treatment (For S1)

Treatment (For S2)

Treatment (For S3)

Treatment (For S4)

Treatment (For S5)

.

.

.

Project Selection Based on Constraints

Project 1

Project 2

Project 3

.

.

.

© 2016 AgileAssets Inc. All Rights Reserved

Page 13: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Multi - Constraint Analysis

Year No 1

13

Network (Management

Sections)

Section 1

Section 2

Section 3

Section 4

Section 5

.

.

.

Decision Tree

Treatment (For S1)

Treatment (For S2)

Treatment (For S3)

Treatment (For S4)

Treatment (For S5)

.

.

.

Project Selection Based on Constraints

Project 1

Project 2

Project 3

.

.

.

Year No 2

Network (Management

Sections)

Section 1

Section 2

Section 3

Section 4

Section 5

.

.

.

Decision Tree

Treatment (For S1)

.

.

.

Project Selection Based on Constraints

Project 1

Project 2

Project 3

.

.

.

Treatment (For S2)

Treatment (For S3)

Treatment (For S4)

Treatment (For S5)

Year No 3

© 2016 AgileAssets Inc. All Rights Reserved

Page 14: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Multi Year Optimization

• Multi Year Multi Constraint : Checks the whole analysis Period for each section.

• More Complex, Bigger problem

• For short analysis period Multi Year results is marginally as optimal as Multi Constraint

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Page 15: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Multi Year

15

Year 1 Year 2 Year 3 Year 4 Year 5

Strategy 1

Strategy2

Strategy3

Strategy4

Strategy5

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Page 16: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Multi Year

16

Year 1 Year 2 Year 3 Year 4 Year 5

Strategy 1

Strategy2

Strategy3

Strategy4

Strategy5

Decision Tree

Section 1

Section 2

Section 3

Section 1 Strategy 1

Section 1 Strategy 2 Section 1 Strategy 3

Section 2 Strategy 1

Section 2 Strategy 2

Section 2 Strategy 3

Select Best for Each Section

Section 1 Strategy 5

Section 2 Strategy 3 Section 3 Strategy 1

Section 4 Strategy 2

Projects (WP)

Project 1

Project 2

Project 3

Project 4

© 2016 AgileAssets Inc. All Rights Reserved

Page 17: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Case Study for Analysis

• ~2000 Management Sections • ~200000 lane miles • 20 Treatment Alternatives • Pavement Condition from Poor, to Good • Average Condition Index = 70

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Page 18: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Optimization

• Optimization method presented here have been used for many large scale networks ranging from the largest highway networks in the nation (e.g., Texas, North Carolina, Virginia) to smaller county/city networks.

© 2016 AgileAssets Inc. All Rights Reserved 18

Page 19: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

• Case Study Number 1 Need Analysis

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Page 20: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

5 years- Need Analysis

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Objective : Maximize Benefit Unlimited Budget ($$$$$$)

Total spending almost was the same for both optimization methods (Need Analysis) after running analysis.

Number of Projects in the Work Plan Multi-Constraint Multi-Year

1733 1687

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

1 2 3 4 5

Mill

ions

Year

Multi-Constraint Multi-Year

Page 21: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

• Case Study Number 2 Limited Budget Analysis

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Page 22: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

10 Year Analysis

22

Objective : Maximize Benefit 1000000 $ available each year

0.00 50.00 100.00

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024 Benefit

Year

Multi-Constraint Multi-Year

945

950

955

960

965

970

975

980

Thou

sand

s

While benefits are maximized exactly the same way in both analyses, Multi Year analyses reached that benefit by spending less money which demonstrates better optimization.

© 2016 AgileAssets Inc. All Rights Reserved

Page 23: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Summary

• Pavement management project selection for a large network is a complex problem specially when having several overlapping constraints.

• Solving such complex problem need appropriate approach and powerful tools

© 2016 AgileAssets Inc. All Rights Reserved 23

Optimization & Savings $$

Cost $ Condition

Service Life

Page 24: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

Summary

• Ranking method is not optimized. • Ranking method can not handle multiple constraints

• Optimization is proven to be the best solution.

• Results from analysis on different networks have shown

significant budget savings when using optimization methods.

• Particularly for longer analysis periods, Multi-Year optimization analysis leads to better results and can save more money compare to Multi-Constraint analysis.

24 © 2016 AgileAssets Inc. All Rights Reserved

Page 25: Multi-Year, Multi-Constraint Strategyonlinepubs.trb.org/onlinepubs/conferences/2016/AssetMgt/60... · Multi-Year, Multi-Constraint Strategy to ... X dollar in second year, Y dollar

© 2016 AgileAssets Inc. All Rights Reserved 25

Thank You!