Decision Making for Repair Versus Replacement of Highway Operations Equipment (2023)

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2023 N A T I O N A L C O O P E R A T I V E H I G H W A Y R E S E A R C H P R O G R A M NCHRP RESEARCH REPORT 1046 Decision Making for Repair Versus Replacement of Highway Operations Equipment Geo Morrison Rex Hazelton Cadmus Arlington, VA Elise Emil Cadmus Portland, OR Henry Canipe Mott MacDonald Raleigh, NC John Hildreth Western Carolina University Cullowhee, NC Dennis Halacho Pine, AZ Subscriber Categories Maintenance and Preservation • Vehicles and Equipment Research sponsored by the American Association of State Highway and Transportation Ofcials in cooperation with the Federal Highway Administration

NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM Systematic, well-designed, and implementable research is the most effective way to solve many problems facing state departments of transportation (DOTs) administrators and engineers. Often, highway problems are of local or regional interest and can best be studied by state DOTs individually or in cooperation with their state universities and others. However, the accelerating growth of highway transporta- tion results in increasingly complex problems of wide interest to high- way authorities. These problems are best studied through a coordinated program of cooperative research. Recognizing this need, the leadership of the American Association of State Highway and Transportation Officials (AASHTO) in 1962 ini- tiated an objective national highway research program using modern scientific techniques—the National Cooperative Highway Research Program (NCHRP). NCHRP is supported on a continuing basis by funds from participating member states of AASHTO and receives the full cooperation and support of the Federal Highway Administration (FHWA), United States Department of Transportation, under Agree- ment No. 693JJ31950003. The Transportation Research Board (TRB) of the National Academies of Sciences, Engineering, and Medicine was requested by AASHTO to administer the research program because of TRB’s recognized objectivity and understanding of modern research practices. TRB is uniquely suited for this purpose for many reasons: TRB maintains an extensive com- mittee structure from which authorities on any highway transportation subject may be drawn; TRB possesses avenues of communications and cooperation with federal, state, and local governmental agencies, univer- sities, and industry; TRB’s relationship to the National Academies is an insurance of objectivity; and TRB maintains a full-time staff of special- ists in highway transportation matters to bring the findings of research directly to those in a position to use them. The program is developed on the basis of research needs iden- tified by chief administrators and other staff of the highway and transportation departments, by committees of AASHTO, and by the FHWA. Topics of the highest merit are selected by the AASHTO Special Committee on Research and Innovation (R&I), and each year R&I’s recommendations are proposed to the AASHTO Board of Direc- tors and the National Academies. Research projects to address these topics are defined by NCHRP, and qualified research agencies are selected from submitted proposals. Administration and surveillance of research contracts are the responsibilities of the National Academies and TRB. The needs for highway research are many, and NCHRP can make significant contributions to solving highway transportation problems of mutual concern to many responsible groups. The program, however, is intended to complement, rather than to substitute for or duplicate, other highway research programs. Published research reports of the NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM are available from Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet by going to https://www.mytrb.org/MyTRB/Store/default.aspx Printed in the United States of America NCHRP RESEARCH REPORT 1046 Project 13-08 ISSN 2572-3766 (Print) ISSN 2572-3774 (Online) ISBN 978-0-309-69851-1 Library of Congress Control Number 2023935240 © 2023 by the National Academy of Sciences. National Academies of Sciences, Engineering, and Medicine and the graphical logo are trade- marks of the National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, APTA, FAA, FHWA, FTA, GHSA, or NHTSA endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The research report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the National Academies of Sciences, Engineering, and Medicine. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; the FHWA; or the program sponsors. The Transportation Research Board does not develop, issue, or publish standards or spec- ifications. The Transportation Research Board manages applied research projects which provide the scientific foundation that may be used by Transportation Research Board sponsors, industry associations, or other organizations as the basis for revised practices, procedures, or specifications. The Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; and the sponsors of the National Cooperative Highway Research Program do not endorse products or manufacturers. Trade or manufacturers’ names or logos appear herein solely because they are considered essential to the object of the report.

e National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, non- governmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Marcia McNutt is president. e National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. John L. Anderson is president. e National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president. e three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. e National Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine. Learn more about the National Academies of Sciences, Engineering, and Medicine at www.nationalacademies.org. e Transportation Research Board is one of seven major programs of the National Academies of Sciences, Engineering, and Medicine. e mission of the Transportation Research Board is to provide leadership in transportation improvements and innovation through trusted, timely, impartial, and evidence-based information exchange, research, and advice regarding all modes of transportation. e Board’s varied activities annually engage about 8,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. e program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. Learn more about the Transportation Research Board at www.TRB.org.

C O O P E R A T I V E R E S E A R C H P R O G R A M S CRP STAFF FOR NCHRP RESEARCH REPORT 1046 Christopher J. Hedges, Director, Cooperative Research Programs Waseem Dekelbab, Deputy Director, Cooperative Research Programs, and Manager, National Cooperative Highway Research Program Amir N. Hanna, Senior Program Officer Emily Griswold, Program Coordinator Natalie Barnes, Director of Publications Heather DiAngelis, Associate Director of Publications NCHRP PROJECT 13-08 PANEL Field of Maintenance—Area of Equipment Bruce D. Erickson, Kea’au, HI (Chair) Melissa A. Boyer, New Jersey Department of Transportation, Trenton, NJ Timothy D. Cunningham, Kansas Department of Transportation, Topeka, KS Robert J. Ellingsworth, Farmington, MN Meghan Jorgenson, Oregon Department of Transportation, Salem, OR Danny W. Keene, Arkansas Department of Transportation, Little Rock, AR Samuel Labi, Purdue University, West Lafayette, IN Michael Mayor, California Department of Transportation, Sacramento, CA Jon D. Wilcoxson, Kentucky Transportation Cabinet, Lexington, KY Morgan Kessler, FHWA Liaison

NCHRP Research Report 1046: Decision Making for Repair Versus Replacement of Highway Operations Equipment is a handbook to help determine the basis for decisions about what to do with a downed piece of equipment as well as a guide for formulating such decisions in a cost-effective way. It presents a systematic process for deciding whether to repair or replace such equipment. The guide will help fleet managers decide whether to repair or replace a downed piece of equipment by implementing a systematic process supported by sound, data-driven analyses. The information contained in this report should be of interest to fleet managers, state main- tenance engineers, and others involved in the planning and budgeting aspects of equipment fleet assets. Equipment failures often require state transportation agency fleet managers to consider whether the equipment should be repaired or replaced. The decision-making process typi- cally considers a variety of factors, such as (1) availability of other equipment, (2) seasonal conditions and maintenance workloads, (3) budget restrictions and agency policies, (4) the time and cost associated with replacement or repair, and (5) future equipment reliability. As there is no widely accepted process for making such decisions, there was a need to develop a rational process for evaluating available options and identifying the optimum choice. There was also a need to develop a guide to facilitate its use and to help equipment managers with the decision-making process. Under NCHRP Project 13-08, “Guideline for Decision Making for Repair vs. Replacement of Highway Maintenance Equipment,” Cadmus was tasked with developing a guide that presents a rational methodology, supportive computational tools, and examples to illustrate how to identify the optimum decision on repair versus replace. To accomplish this objective, the researchers identified and reviewed the factors, practices, and processes for making repair versus replacement decisions and used this information to develop a systematic evaluation and decision-making process. The process uses data-driven analyses and incorporates user-defined criteria for equipment repair and replacement to determine the optimum option. The researchers prepared a guide document (included as Part II of the research report) to facilitate use of the process, a software application to sup- port the evaluation and decision-making process, and a user manual (included as Part III of the research report) that provides step-by-step instructions for its use. F O R E W O R D By Amir N. Hanna Staff Officer Transportation Research Board

1 Summary P A R T I Research Report 7 Chapter 1 Introduction 7 1.1 Purpose of the Research Report 7 1.2 Summary 7 1.3 Organization of the Research Report 8 Chapter 2 Research Approach 8 2.1 Overview 8 2.2 Literature Review Approach 8 2.3 Survey Approach 9 2.4 Interview Approach 9 2.5 Framework Development Approach 10 2.6 Tool Development Approach 11 Chapter 3 Research Outcomes 11 3.1. Introduction 11 3.2 Literature Review 11 3.3 Surveys and Interviews 15 3.4 Framework Development 16 3.5 Tool Development P A R T I I Guide 21 Chapter 1 Purpose and Organization of the Guide 21 1.1 Purpose of the Guide 21 1.2 Organization of the Guide 22 Chapter 2 Fundamentals of Managing a Downed Piece of Equipment 22 2.1 Background 23 2.2 Drivers of Decision Making 23 2.3 Possible Outcomes 24 Chapter 3 Decision-Making Approaches to Downed Equipment 24 3.1 Economic Lifetime Approach 25 3.2 Repair Limits Approach 26 3.3 Hybrid Approach C O N T E N T S

27 Chapter 4 Decision Tree for Fleet Managers 27 4.1 Decision Tree 27 4.2 Bias Toward Repair 28 Chapter 5 Future Cost and Availability Impacts on Equipment 30 Chapter 6 Calculation of A and B Coefficients for Economic Analysis Forecasting P A R T I I I User Manual for the 4R Tool 37 Chapter 1 Introduction 37 1.1 Background 37 1.2 About this User Manual 38 1.3 4R Tool Capabilities 38 1.4 Video Supplement 39 Chapter 2 Limitations of the 4R Tool 39 2.1 Known Limitations 40 2.2 Situations Causing Irrelevant Outcomes 42 Chapter 3 4R Tool Installation 43 Chapter 4 Data Preparation 43 4.1 Data Setup 43 4.2 Data Checklist 48 Chapter 5 Running the 4R Tool Decision Module 48 5.1 Getting Started 48 5.2 Tool Organization 49 5.3 Color Scheme 49 5.4 Summary of Inputs 50 5.5 Summary of Outputs 51 5.6 Using the 4R Tool 60 Chapter 6 Running the 4R Tool Economic Analysis Module 65 Chapter 7 Outputs and Printing 68 Chapter 8 Use Case Examples of Decision Module 69 8.1 Example 1: New Equipment with Minor Damage 72 8.2 Example 2: Old Equipment with Major Damage or Major Component Failure 75 8.3 Example 3: Midlife Equipment with Significant Damage or Major Component Failure 78 8.4 Example 4: Failure of Critical Equipment Needed for Upcoming Seasonal Work 81 8.5 Example 5: External Insurance Claim with Possible Third Party Liability Recovery that Delays Decision 84 8.6 Example 6: Highly Critical Equipment with Major Damage but Difficult Parts Availability and a Long Lead Time to Repair, Rebuild, Replace, or Retire 87 8.7 Example 7: Major Equipment Component Failure Caused by DOT Opera- tor Misuse or Abuse 90 8.8 Example 8: Equipment Vandalism 93 8.9 Example 9: Old Equipment with Major Damage or Component Failure

Note: Photographs, figures, and tables in this report may have been converted from color to grayscale for printing. The electronic version of the report (posted on the web at nap.nationalacademies.org) retains the color versions. 96 Chapter 9 Use Case Example of Economic Analysis Module 96 9.1 Additional Input Variables Needed 98 9.2 Inputting Data 103 9.3 Notes on Economic Analysis Module Example 104 Chapter 10 Communications Guide 104 10.1 Summary of Scores 104 10.2 Assessing Economic Impact: Economic Analysis Visualization 104 10.3 Simple Decision Tree 104 10.4 Detailed Decision Tree 108 References 109 Appendix A Survey Questions 111 Appendix B Survey Results 118 Appendix C Interview Guide 120 Appendix D Annotated Bibliography