Post on 25-Dec-2015
Transportation leadership you can trust.
presented topresented to
NCHRP Project 20-60 PanelNCHRP Project 20-60 Panel
presented bypresented by
Cambridge Systematics, Inc.Cambridge Systematics, Inc.
withwith
PB Consult Inc.PB Consult Inc.Texas Transportation InstituteTexas Transportation Institute
Performance Measures and Targets for Transportation Asset ManagementProject Summary
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Presentation Contents
NCHRP Project 20-60 – Background and Objectives
Overview of Findings
Framework for Performance Measure Selection and Target Setting
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Context
““Asset Management is a Strategic Asset Management is a Strategic Approach…It is driven by policy goals and Approach…It is driven by policy goals and
objectives and relies on systematic objectives and relies on systematic assessments of asset performance and cost assessments of asset performance and cost
in making decisions on future actions.”in making decisions on future actions.”
–– AASHTO Transportation Asset Management Guide, AASHTO Transportation Asset Management Guide, November 2002November 2002
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NCHRP Project 20-60 Objectives
Develop guidance to help transportation agencies
• Identify measures best suited for asset management− Preservation
− Operations
− Expansion
• Select specific measures for implementation
• Establish performance targets
Complement the AASHTO Transportation Asset Management Guide
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NCHRP 20-60 Products
Volume 1 – Formal Project Report
• Review of current practices
• In-depth discussion of key issues in developing and using measures in an asset management context
• Several examples from state DOTs
Volume 2 – Stand-alone Implementation Guide
• Identify performance measures
• Integrate measures into the organization
• Establish performance targets
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Role of Performance Measuresin Asset Management
Policy Goalsand Objectives
Analysis of Options and Trade-offs
Resource Allocation Decisions
Financial Staff Equipment Other
Program and Service Delivery
System Condition and Service Levels
Funding Levels
Public Input
PreservationPreservation OperationsOperations CapacityCapacityExpansionExpansion
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Policy Goalsand Objectives
Analysis of Options and Trade-offs
Resource Allocation Decisions
Financial Staff Equipment Other
Program and Service Delivery
System Condition and Service Levels
Funding Levels
Public Input
PreservationPreservation OperationsOperations CapacityCapacityExpansionExpansion
Role of Performance Measuresin Asset Management (continued)
Translate policy objectives into guidance for
decision-making
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Policy Goalsand Objectives
Analysis of Options and Trade-offs
Resource Allocation Decisions
Financial Staff Equipment Other
Program and Service Delivery
System Condition and Service Levels
Funding Levels
Public Input
PreservationPreservation OperationsOperations CapacityCapacityExpansionExpansion
Role of Performance Measuresin Asset Management (continued)
Provide framework forevaluating options to
define best mix of investments within and
between programs
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Policy Goalsand Objectives
Analysis of Options and Trade-offs
Resource Allocation Decisions
Financial Staff Equipment Other
Program and Service Delivery
System Condition and Service Levels
Funding Levels
Public Input
PreservationPreservation OperationsOperations CapacityCapacityExpansionExpansion
Role of Performance Measuresin Asset Management (continued)
Help to define expectations and outcomes for budget decisions
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Policy Goalsand Objectives
Analysis of Options and Trade-offs
Resource Allocation Decisions
Financial Staff Equipment Other
Program and Service Delivery
System Condition and Service Levels
Funding Levels
Public Input
PreservationPreservation OperationsOperations CapacityCapacityExpansionExpansion
Role of Performance Measuresin Asset Management (continued)
Help track effectivenessof program
and service project delivery
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Policy Goals and Objectives
Analysis of Options and Trade-offs
Resource Allocation Decisions
Financial Staff Equipment Other
Program and Service Delivery
System Condition and Service Levels
Funding Levels
Public Input
PreservationPreservation OperationsOperations CapacityCapacityExpansionExpansion
Role of Performance Measuresin Asset Management (continued)
Provide basis for monitoring system
conditions
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Selecting Suitable Performance Measures
Essential requirements for a measure to support asset management
• Helps agency make better decisions about whereto invest resources
• Agency can take actions that change its value
Additional criteria
• Linked to agency objectives
• Easy to communicate
• Feasible to collect
• Feasible to predict
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Getting the Most out of Performance Measures for Asset Management
Look at performance versus investment over the long-term
Integrate use of PMs within planning, budgeting, prioritization, operations, and annual reporting
Use to help make investment trade-offs across asset classes and types of work
Set targets that are achievable and monitor progress
Use a mix of output- and outcome-oriented measures
Design effective data gathering, reporting,and communication devices
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Examples of Best Practices
Use measures as basis for establishing program allocation levels – pavement, bridge, and capacity (MT)
Provide targets and associated funding levels to districts to aide in project selection (NY)
Districts show implications of +/- 10% in funding as part of allocation process (OH)
Quarterly reviews of performance by DOT management (CO and FL)
Current performance data on Internet (VA and WS)
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Tailor Measures to
Decisions
Design Consistent Measures Across Program Areas
Identify Improvements to Data and Tools
Design Communication
Devices
Engage Stakeholders
Document Definitions and
Procedures
Identify Performance Measures
Inventory Existing Measures
Consider Policy and Public Input
Assess and Select Measures for Further Design and
Implementation
Integrate Performance Measures into the Organization
Establish Performance Targets
Define Contextsand Time Horizons
Select Scopeof Measures for Targets
Develop Long-Term
Goals
Consider Funding
Availability
Analyze Resource Allocation Scenarios
and Trade-offs
Establish Targets and
Track Progress
Assess Gaps
Define Selection Criteria
Identify Candidate Measures/Adjustments to
Existing Measures
Guidance for Performance Measuresand Targets
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Identifying Performance Measures
Inventory Existing Measures
Define Criteriafor Selecting New Measures
Identify Candidate Measures/ Adjustments to Existing Measures
Assess and Select Measures for Further Design and Implementation
Gap Analysis
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Identifying Performance Measures (continued)
Step 1 – Inventory Existing Measures
• How are they working?
• How are they being used?
Step 2 – Gap Analysis
• What are the most important outcomes to be achieved? Do your existing performance measures adequately cover these outcome areas?
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Identifying Performance Measures (continued)
Step 3 – Define Criteria for Selecting New Measures
• Selection criteria should reflect the intended purpose, use, and audience for the performance measure
• Suggested selection criteria include − Feasible
− Policy sensitive
− Supports long-term, strategic view
− Useful for decision support
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Identifying Performance Measures (continued)
Step 4 – Identify Candidate Measures
• Develop a set of performance measures that could be helpful for making better resource allocation decisions
• Organize measures that you select according to their intended use(s) and audience(s)
Step 5 – Assess and Select Measures
• Evaluate candidate measures by applying criteria developed in Step 3
• Select performance measures to implement
• Clearly document the definitions of each selected measure
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Integrating Performance Measures intoan Organization
Engage Stakeholders
Tailor Measures to Decisions
Design Consistent Measures Across Program Areas
Identify Improvements to Data and Tools
Design Communication Devices
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Integrating Performance Measures into an Organization (continued)
Step 1 – Engage Stakeholders to Ensure Buy-in
• Give stakeholders the opportunity to participate in the performance measure development process
• Involve both users of PMs and producers of PMs
Step 2 – Tailor Performance Measures to Decisions
• Project-, corridor-, network-level
• Short-, medium-, long-term
• Executive, middle management, technical
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Integrating Performance Measures into an Organization (continued)
Step 3 – Design Consistent Measures AcrossProgram Areas
• Percent good, fair, poor
• Percent desirable, minimum tolerable, high-risk
Step 4 – Identify Needs for Improved Dataand Analytical Tools
• Action items to implement selected measures
• Ensure availability of sufficient budget and staff resources
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Integrating Performance Measures into an Organization (continued)
Step 5 – Design Communication Devices
• Match reports to needs of intended users
• Design report formats to make the measures easily understandable
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Integrating Performance Measures into an Organization (continued)
Step 6 – Document Measure Definitions and Procedures
• Common understanding of definitions, calculation methods
• Quality Assurance process
• Basis for auditing
• Update as measures evolve
• Archive documentation with historical data
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Establishing Performance Targets
Define Contexts and Time Horizons for Targets
Select Scope of Measuresfor Targets
Develop Long-Term Goals
Consider Funding Availability
Analyze Resource Allocation Scenarios and Trade-offs
Consider Policyand Public Input
Establish Targetsand Track Progress
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Establishing Performance Targets (continued) Considerations for Setting Performance Targets
Realistic projection of available funding
Policies and priorities
Current and forecast conditions
Economic efficiency considerations
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Establishing Performance Targets (continued)
Step 1 – Define Target Setting Contextand Set Time Horizons
• When and how will targets be used?
• Watch out for inconsistent targets across measures
Step 2 – Select the Scope of Measures for Performance Targets – consider
• Baseline data availability
• Analytical capabilities to predict future values under different assumptions
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Establishing Performance Targets (continued)
Step 3 – Develop Long-Term Performance Goals based on Technical and Economic Factors
• Alignment with national or other goals(e.g., U.S. DOT safety goals)
• Benchmarks from other agencies
• Optimization models – performance levels with leastlong-term user and agency costs
• “Steady-state” condition levels
• Law of diminishing marginal returns
• User cost curves from past research – levels of performance where user costs rise steeply
• Customer surveys or feedback
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Establishing Performance Targets (continued)
Step 4 – Consider Current and Future Funding Availability
• Place performance targets in the context of futurefunding availability
• Estimate future funding from past trends and available information about future funding levels
Step 5 – Analyze Resource Allocation Scenariosand Trade-offs
• Analyze performance-cost relationships to use as guidesfor target-setting based on funding and resource allocation scenarios
• Estimate cost to achieve long-term goals – for use in the budget process
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Resource Allocation and Trade-off ScenariosEffects on Infrastructure Condition
00
2020
4040
6060
8080
100100
00 11 22 33 44 55 66 77 88 99 1010
Time (Years)Time (Years)
Pavement in Good Condition (in Percent)Pavement in Good Condition (in Percent)
$25M per year$25M per year
$5M per year$5M per year
Do NothingDo Nothing
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Establishing Performance Targets (continued)
Step 6 – Consider Policy and Public Input
• Exchange information and ideas with external stakeholder to establish desired performance levels and priorities
Step 7 – Establish Targets and Track Progress
• Select actual target values, report these targets, and track progress towards achievement of the targets
• Periodically adjust targets based on progress made, changes in policy or priorities, or emergence of information or factors not previously considered
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Establish Targets and Track Progress Minnesota DOT Communication of Performance Targets
PerformanceLevel
CurrentPerformance
Level
1997 2001 6-YearTarget
Baseline Performance
20-Year Performance Level
FuturePerformanceGap
10-YearTarget
20-YearTarget
Trend-BasedPerformance Projections
Current Performance Level
Policy-BasedPerformance Target