Infrastructure Asset Management summary (2020)
Infrastructure Asset Management
Micro-lecture 1: “Characteristics and importance of Infrastructure”
Information about infrastructure:
- A fixed capital asset that is physical and manufactured
- A stationary system with its network character
- Infrastructure assets have a long design and service life.
- Serves defined stakeholders and is critical to these stakeholders due to the limited
possibilities of short-run substitution.
Tangible and Intangible: Organizations responsible for the management of infrastructure assets can
also possess intangible assets. Intangible assets are patents or copyrights that possess value for the
organization and can thus be seen as assets.
Provides the platform for economic and social development:
Economic infrastructure: Roads
Social infrastructure: Hospitals, sports stadiums
Natural monopoly: A company with a natural monopoly might be the only provider or a product or
service in an industry or geographical location. Many infrastructure objects are monopolies, it is
difficult to replace infrastructure objects in the short run, this involves high fixed costs that make
most infrastructures natural monopolies.
Micro-lecture 2: “Define infrastructure asset management”
Infrastructure Asset Management involves activities and decisions that enable infrastructure to
provide services for defined stakeholders over certain periods of time taking into account
performance and costs of infrastructure.
Performance measurement of a bridge is for example: Traffic jams show that a bridge cannot cope
with the required traffic volume it is facing today. Since the number of heavy vehicles increased as
well, the current traffic loads are also beyond the design parameters. The bridge has reached its
load-bearing capacity, or more generally: The bridge can fulfil its function only to a certain extent.
Performance = How well a person, machine, etc. do a piece of work or an activity
Three central questions an asset manager has to answer to see if the situation could have been
prevented:
1. To whom is the infrastructure important in providing a service?
2. Does the infrastructure allow the required service delivery?
3. What should be done to ensure the required service delivery?
When deciding on the timing for an infrastructure asset is hard to determine the performance level
when an intervention is needed.
Tutorial 1: “Understanding infrastructure asset management”
Asset Management: Very broad term, covers all assets that have a value for organisations, this
includes tangible and intangible assets.
Page 1 of 20
,Infrastructure Asset Management summary (2020)
Infrastructure Management: Focusing on tangible, physical objects that can be classified as
infrastructure
Infrastructure Asset Management: Focusing on tangible, physical objects that can be classified as
infrastructure, but put more emphasis on the value of these objects, by using the term asset.
Slight difference, its usage of these terms may depend on whether you like to stress infrastructure as
the vocal assets to be managed.
Service delivery = The act of providing a service to customers.
The tunnel was closed so it did not allow the required service delivery. The tunnel lost its
functionality, road users were not able to pass the tunnel. However, it lost not its functionality
completely, because it did not collapse. The tunnel could still be used by highway users, but not in a
safe way.
Challenges infrastructure managers are confirmed with:
- Aged infrastructure
- Technology developments
- Complexity
- Interdependencies
- Uncertainty
Aged infrastructure: What is needed to fulfil current requirements?
Interdependencies: Small defects of single components can lead to failure of entire objects,
having cascading effects on the underlying network.
Micro-lecture 3: “infrastructure asset management framework”
Planning the interventions needed for the upcoming year is a Tactical decision. This decision has a
medium-term horizon and is planned to be implemented.
External Context
Demand Technology Policy Environment
Internal Context Decision Context
Strategy Infrastructure
Objective
Organisation
Knowledge
Infrastructure Infrastructure
Performance Intervention
Finance
Strategic
Tactical
Operational
Page 2 of 20
, Infrastructure Asset Management summary (2020)
The 3 interrelated decision areas within the decision context that IAM managers relate to are:
Area 1 | Infrastructure objectives
↳ Achievement with infrastructure.
↳ Important stakeholders and their needs.
↳ Infrastructure criticality for stakeholder’s production or processes.
↳ Deliverable level of infrastructure performance.
Area 2 | Infrastructure performance
↳ Deciding the criteria that define and measure the attended level of performance.
↳ Deciding when performance levels results would be reached.
↳ Determining how the performance should be monitored.
Area 3 | Infrastructure Intervention
↳ Specifying intervention type, extend and time to be applied.
↳ Deciding intervention strategies need to be followed for defined periods of time.
↳ Determine if and how interventions should be procured.
Decision contexts and their time horizons and level of infrastructure system:
Strategic decisions
↳ Long term horizon.
↳ Mainly located on the infrastructure level network.
Tactical decisions
↳ Medium-term horizon.
↳ Infrastructure assets of parts of the infrastructure network.
Operational decisions
↳ Short term horizon.
↳ Single infrastructure assets or components.
External factors:
IAM managers consider external factors that introduce risk and uncertainty in decision making
because IAM decisions are contextually embedded:
Demand for infrastructure services
↳ Changes over time and can require different functions or performance levels of assets.
For example, the increase in road traffic.
Current and future technologies
↳ Offers more sufficient and effective ways of building, maintaining and operating assets.
For example, the availability of low-cost sensor technology that allows direct and continuous
monitoring.
Policy and regulations
↳ Can limit boundaries.
For example, budget cut
Environment
↳ Environmental aspects are often asked for different decisions.
For example, climate change.
Page 3 of 20
Infrastructure Asset Management
Micro-lecture 1: “Characteristics and importance of Infrastructure”
Information about infrastructure:
- A fixed capital asset that is physical and manufactured
- A stationary system with its network character
- Infrastructure assets have a long design and service life.
- Serves defined stakeholders and is critical to these stakeholders due to the limited
possibilities of short-run substitution.
Tangible and Intangible: Organizations responsible for the management of infrastructure assets can
also possess intangible assets. Intangible assets are patents or copyrights that possess value for the
organization and can thus be seen as assets.
Provides the platform for economic and social development:
Economic infrastructure: Roads
Social infrastructure: Hospitals, sports stadiums
Natural monopoly: A company with a natural monopoly might be the only provider or a product or
service in an industry or geographical location. Many infrastructure objects are monopolies, it is
difficult to replace infrastructure objects in the short run, this involves high fixed costs that make
most infrastructures natural monopolies.
Micro-lecture 2: “Define infrastructure asset management”
Infrastructure Asset Management involves activities and decisions that enable infrastructure to
provide services for defined stakeholders over certain periods of time taking into account
performance and costs of infrastructure.
Performance measurement of a bridge is for example: Traffic jams show that a bridge cannot cope
with the required traffic volume it is facing today. Since the number of heavy vehicles increased as
well, the current traffic loads are also beyond the design parameters. The bridge has reached its
load-bearing capacity, or more generally: The bridge can fulfil its function only to a certain extent.
Performance = How well a person, machine, etc. do a piece of work or an activity
Three central questions an asset manager has to answer to see if the situation could have been
prevented:
1. To whom is the infrastructure important in providing a service?
2. Does the infrastructure allow the required service delivery?
3. What should be done to ensure the required service delivery?
When deciding on the timing for an infrastructure asset is hard to determine the performance level
when an intervention is needed.
Tutorial 1: “Understanding infrastructure asset management”
Asset Management: Very broad term, covers all assets that have a value for organisations, this
includes tangible and intangible assets.
Page 1 of 20
,Infrastructure Asset Management summary (2020)
Infrastructure Management: Focusing on tangible, physical objects that can be classified as
infrastructure
Infrastructure Asset Management: Focusing on tangible, physical objects that can be classified as
infrastructure, but put more emphasis on the value of these objects, by using the term asset.
Slight difference, its usage of these terms may depend on whether you like to stress infrastructure as
the vocal assets to be managed.
Service delivery = The act of providing a service to customers.
The tunnel was closed so it did not allow the required service delivery. The tunnel lost its
functionality, road users were not able to pass the tunnel. However, it lost not its functionality
completely, because it did not collapse. The tunnel could still be used by highway users, but not in a
safe way.
Challenges infrastructure managers are confirmed with:
- Aged infrastructure
- Technology developments
- Complexity
- Interdependencies
- Uncertainty
Aged infrastructure: What is needed to fulfil current requirements?
Interdependencies: Small defects of single components can lead to failure of entire objects,
having cascading effects on the underlying network.
Micro-lecture 3: “infrastructure asset management framework”
Planning the interventions needed for the upcoming year is a Tactical decision. This decision has a
medium-term horizon and is planned to be implemented.
External Context
Demand Technology Policy Environment
Internal Context Decision Context
Strategy Infrastructure
Objective
Organisation
Knowledge
Infrastructure Infrastructure
Performance Intervention
Finance
Strategic
Tactical
Operational
Page 2 of 20
, Infrastructure Asset Management summary (2020)
The 3 interrelated decision areas within the decision context that IAM managers relate to are:
Area 1 | Infrastructure objectives
↳ Achievement with infrastructure.
↳ Important stakeholders and their needs.
↳ Infrastructure criticality for stakeholder’s production or processes.
↳ Deliverable level of infrastructure performance.
Area 2 | Infrastructure performance
↳ Deciding the criteria that define and measure the attended level of performance.
↳ Deciding when performance levels results would be reached.
↳ Determining how the performance should be monitored.
Area 3 | Infrastructure Intervention
↳ Specifying intervention type, extend and time to be applied.
↳ Deciding intervention strategies need to be followed for defined periods of time.
↳ Determine if and how interventions should be procured.
Decision contexts and their time horizons and level of infrastructure system:
Strategic decisions
↳ Long term horizon.
↳ Mainly located on the infrastructure level network.
Tactical decisions
↳ Medium-term horizon.
↳ Infrastructure assets of parts of the infrastructure network.
Operational decisions
↳ Short term horizon.
↳ Single infrastructure assets or components.
External factors:
IAM managers consider external factors that introduce risk and uncertainty in decision making
because IAM decisions are contextually embedded:
Demand for infrastructure services
↳ Changes over time and can require different functions or performance levels of assets.
For example, the increase in road traffic.
Current and future technologies
↳ Offers more sufficient and effective ways of building, maintaining and operating assets.
For example, the availability of low-cost sensor technology that allows direct and continuous
monitoring.
Policy and regulations
↳ Can limit boundaries.
For example, budget cut
Environment
↳ Environmental aspects are often asked for different decisions.
For example, climate change.
Page 3 of 20
