> Kent Kostuk wrote:
> 
> As I mentioned before.  The file that I have attached runs into the
> footer section of some pages.  I didn't recall doing anything out of
> the ordinary, but given I am still experimenting there is always the
> chance I took a wrong turn somewhere.

you had no standard text, only section, subsection, aso. so latex
can't formatting this stuff. have a look at the attached file
it's another solution.

Herbert

-- 
http://www.educat.hu-berlin.de/~voss/lyx/
#LyX 1.1 created this file. For more info see http://www.lyx.org/
\lyxformat 218
\textclass article
\language english
\inputencoding latin1
\fontscheme default
\graphics default
\paperfontsize default
\spacing single 
\papersize Default
\paperpackage a4
\use_geometry 1
\use_amsmath 0
\paperorientation portrait
\leftmargin 0.5in
\topmargin 1in
\rightmargin 0.5in
\bottommargin 1in
\secnumdepth 3
\tocdepth 3
\paragraph_separation indent
\defskip medskip
\quotes_language english
\quotes_times 2
\papercolumns 1
\papersides 1
\paperpagestyle default

\layout Section

Is This a Civil Engineering Problem?
\layout Enumerate

Infrastructure is largely public sector
\layout Enumerate

Historically public works fal within the domain of civil engineering.
\layout Enumerate

Could 
\begin_inset Quotes eld
\end_inset 

allow
\begin_inset Quotes erd
\end_inset 

 the management of process to others and as a discipline we act in an operations
 function.
\layout Enumerate

Better to have decision makers/strategists understand management issues
 and eng.
 issues.
\layout Enumerate

Easier to train engineer in management than manager in engineering.
\layout Enumerate

It has been our responsibility.
 If we do not begin to manage better our influence will be greatly reduced.
\layout Section

Asset Management
\layout Enumerate

Define Asset Management.
\begin_deeper 
\layout Enumerate

FHWA-AASHTO 
\begin_inset Quotes eld
\end_inset 

Working definition
\begin_inset Quotes erd
\end_inset 


\newline 

\begin_inset Quotes eld
\end_inset 

Asset management is a systematic process of maintaining, upgrading, and
 operating physical assets cost effectively.
 It combines engineering principles with sound business practices and economic
 theory, and it provides tools to facilitate a more organized, logical approach
 to decision-making.
 Thus, asset management provides a framework for handling both short- and
 long-range planning.
\begin_inset Quotes erd
\end_inset 


\end_deeper 
\layout Enumerate

Why Now?
\begin_deeper 
\layout Enumerate

3 Key Factors
\begin_deeper 
\layout Enumerate

Changes in public expectations
\layout Enumerate

High tax burden -- public wants to see their money put to good use -- min.
 waste.
\layout Enumerate

Advances in technology
\layout Enumerate

Advances in computing technology has simplified (or at least made feasible)
 data collection, storage and retrieval
\layout Enumerate

Optimization and analytical engines capable solving large problems
\layout Enumerate

Raw HP available is significant 
\layout Enumerate

Changes in public works environment 
\layout Enumerate

High user demand, stretched budgets, mature assets, declining staff resources
\end_deeper 
\end_deeper 
\layout Enumerate

Project vs Network Level Management
\begin_deeper 
\layout Enumerate

2 levels of management -- project and network
\layout Enumerate

A network (strategic level) is made up of individual projects
\layout Enumerate

Project (tactical level) is a definable, homogenous unit
\layout Enumerate

This research focuses on project level
\end_deeper 
\layout Enumerate

Project Level Management
\begin_deeper 
\layout Enumerate

3 key categories of analytical model
\begin_deeper 
\layout Enumerate

State, time, transition
\end_deeper 
\layout Enumerate

State -- what condition is this asset?
\layout Enumerate

Time -- what is the condition at this point in time?
\layout Enumerate

Transition -- by how much did the condition state change? Over what period?
 What caused the change?
\layout Enumerate

The model above can be used to generate an optimal 
\begin_inset Quotes eld
\end_inset 

policy
\begin_inset Quotes erd
\end_inset 

 or maintenance plan.
\end_deeper 
\layout Enumerate

Applying the abstract model to 
\begin_inset Quotes eld
\end_inset 

flesh and blood
\begin_inset Quotes erd
\end_inset 

 asset is paramount
\begin_deeper 
\layout Enumerate

Applying Abstraction
\layout Enumerate

Application of abstraction relatively straightforward
\layout Enumerate

The key to doing it well is careful consideration of available resources/data
\layout Enumerate

State: What condition information is available via records, future data
 collection, physical models, local/expert knowledge
\layout Enumerate

Transition: Translate this to treatments/control.
 What causes the asset to depreciate and what can be done to improve state?
\layout Enumerate

Need to consider both simultaneously
\layout Enumerate

In the past state was defined by an aggregate condition index.
 Attempt was made to relate the index to the physical distresses.
 Problem: Index value did not correspond to unique set of physical distresses
\layout Enumerate

A uniquely definable condition index is not the only goal to be accomplished.
 Distresses that are p art of index must be treatable/contollable based
 on the available treatment methods and equipment
\layout Enumerate

Suggests hierarchy of treatments -- distresses
\layout Enumerate

Need to define distress
\layout Enumerate

Distress -- definable/measurable mode of failure.
 Concisting of both severity (How wide is this crack?) and extent (How many
 cracks per unit length?)
\end_deeper 
\layout Enumerate

Data Collection
\begin_deeper 
\layout Enumerate

Need data for asset's condition (for all distresses) today (or some point
 in time) and its performance under various treatments
\layout Enumerate

Sounds simple.
 Usually a key stumbling block
\layout Enumerate

Data for new systems often does not exist (FHWA refers to Pontis)
\layout Enumerate

3 sources: Historic/survey, expert, 1st principles
\layout Enumerate

Historic/survey -- info not there, time intensive
\layout Enumerate

1st principles -- would be great but do not necessarily exist (likely not)
\layout Enumerate

Expect opinion -- subjective data based on past experience on this asset
 or similar.
 Largest downside, can include personal bias.
 Upside is time effective if right tool chosen.
\layout Enumerate

Can always update subjective data once some history is accumulated.
\end_deeper 
\layout Enumerate

Decision Model
\begin_deeper 
\layout Enumerate

Raw data acts as foundation to decision 
\layout Enumerate

Needs structure to become information 
\layout Enumerate

How will alternatives be compared and how will infeasible alternatives be
 discarded?
\layout Enumerate

Comparison -- objective function
\layout Enumerate

Feasibility -- constraints
\layout Enumerate

Objective function -- min.
 costs or max.
 user's utility? Both require constraint to prevent impractical extremes
 (all bad or everything perfect).
\layout Enumerate

Model output -- maintenance strategy and corresponding budget
\layout Enumerate

Model is optimal based on data provided if resulting strategy is not considered
 effective then mode's formulation/structure should be considered for reformulat
ion.
\end_deeper 
\layout Section

Long Term Maintenance Contracts
\layout Enumerate

What is a LTMC?
\begin_deeper 
\layout Enumerate

Owner of asset contracts out the maintenance of asset over some period
\layout Enumerate

Length of contract varies -- function of size of contract, lifespan of asset,
 utilization, availability of expertise in marketplace
\layout Enumerate

Used in both private and public sector
\layout Enumerate

Extent of what is covered under contract also variable -- as little as routine
 and as much as full responsibility of asset's performance overtime
\layout Enumerate

Even used in healthcare -- in U.S.
 H.M.O., U of S dental plan
\layout Enumerate

Examples of public sector impelentations
\layout Enumerate

In BC, Australia/NZ, UK, Alberta, Ontario
\end_deeper 
\layout Enumerate

Why LTMC in Public Sector?
\begin_deeper 
\layout Enumerate

Key reason -- private sector involvement in maintaining public assets
\layout Enumerate

Additional benefit -- elimates uncertainty 
\layout Enumerate

Arrangement (typical)
\begin_deeper 
\layout Enumerate

Assets selected for contract by owner 
\layout Enumerate

Ower establishes length of contract
\layout Enumerate

Owner establishes L.O.S.
 required during life of contract
\layout Enumerate

Owner establishes the min.
 condition asset must be in at end of contract
\layout Enumerate

Could also establish what would be considered out of the ordinary (out of
 scope)
\layout Enumerate

Contractor's bid on contract
\layout Enumerate

Under some scenarios user tolls are part of the agreement
\end_deeper 
\layout Enumerate

Basically what is happening is that the owner is accepting a fixed amount
 (the bid) for a potentially uncertain process (the maintenance of the asset)
\layout Enumerate

LTMC are characterized as a transfer of risk from the public to private
 sector
\layout Enumerate

Baasides such obvious savings as transering work form a unionized to non-unioniz
ed environment, savings are expected from the private sector's ability to
 quickly respond to stochastic events.
\layout Enumerate

>From the contractor's perspective they want to bid low enough to get work
 but high enough so as to minimize the likelihood of losing money on job.
\layout Enumerate

Extremely valid concern.
 Size of projects are quite large just because of the intrinsic value of
 the assets
\end_deeper 
\layout Enumerate

Quantifying Risk
\begin_deeper 
\layout Enumerate

Risk is defined as the possibility of an undesirable event
\layout Enumerate

Obviously the u ndesirable case in this situation is for the maintenance
 costs to exceed the contract's value
\layout Enumerate

Before contractor can begin looking at controlling/managing risk he must
 quantify it first
\layout Enumerate

Ideal tool is an asset management system
\begin_deeper 
\layout Enumerate

Includes inventory, costs, past performance, and predictive models
\end_deeper 
\layout Enumerate

Models must be probabilistic -- the process is uncertain
\layout Enumerate

Probabilistic model will generate an expected cost and the distribution
 associated wtih this cost
\layout Enumerate

The contractor's risk can be determined from the portion of the distribution
 where the costs exceed the contract's value.
\end_deeper 
\layout Enumerate

Managing Risk
\begin_deeper 
\layout Enumerate

Once risk is quantified, managing it is possible 
\layout Enumerate

>From contractor's perspective -- what can be done to reduce exposure to
 risk or size of risk?
\layout Enumerate

Exposure to risk -- variance.
 Reduce distribution's spread and the 
\begin_inset Quotes eld
\end_inset 

negative area
\begin_inset Quotes erd
\end_inset 


\layout Enumerate

Size of risk -- reduce size of downside.
\layout Enumerate

How to contrl?
\layout Enumerate

What influences system transition?
\layout Enumerate

Environment -- no change
\layout Enumerate

Utilization -- can not change
\layout Enumerate

Asset's performance -- contractor can influence
\layout Enumerate

Performance -- how performs and how well we can reduce variability associated
 with performance
\layout Enumerate

Contractor may live with uncertainty if lower costs 
\layout Enumerate

Issue of trade-offs
\layout Enumerate

contractor can explicitly quantify value associated witih better performance,
 more consistent perforamnce, better information
\end_deeper 
\layout Section

Objective
\layout Enumerate

Develop methodology to quantify the uncertainty associated with long term
 maintenance contracts.
\layout Section

Scope
\layout Enumerate

Scope restricted to the development of simple project level asset management
 model
\layout Enumerate

Model will generate an optimal managemetn strategy basd on level of service
 constraints and asset performance prediction curves
\layout Enumerate

The ability to control/impact risk will be illustrated by adjusting the
 asset performance curves
\layout Enumerate

Example data will be based on pavement performance and costing 
\layout Section

Methodology
\layout Enumerate

Develop how an asset depreciation curve can be used to develop a distress
 transition probability matrix (routine maintenance)
\layout Enumerate

show how (R.M.) distress TPM can be used to develop TPMs for other forms of
 maintenance
\layout Enumerate

Aggregate distress level TPM to form an asset level TPM
\layout Enumerate

Develop LP formulation of AM problem
\layout Enumerate

Solve LP for sample problem
\layout Enumerate

Adjust model inputs -- curves and resolve LP
\the_end

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