A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management (2019) / Chapter Skim
Currently Skimming:
Pages 50-62
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 50... ...
50 Investment strategies are adopted to achieve the asset condition, system performance, and capital expansion goals set by the state DOT in both the short term and the long term. Sound investment strategies maximize the return on investment from both federal and state funds while mitigating risks that interfere with the DOT's ability to sustain an acceptable level of service.
|
From page 51... ...
Investment Strategies and Scenarios 51 as an example of using investment strategies to show progress toward a set of agency performance goals. Figure 5-1 demonstrates how MnDOT communicates three alternative strategies for allocating investments between different categories.
|
From page 52... ...
52 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management spreadsheets, and computer systems. For instance, an agency might use an off-the-shelf pavement or bridge management system, but perform supplemental analysis outside the system to establish its asset life-cycle policies, then enter the resulting policies into the computer system.
|
From page 53... ...
Investment Strategies and Scenarios 53 MODA A basic issue that many state DOTs face as they attempt to allocate resources across asset programs (or investments or "uses") is that they must decide what programs to fund and at what level.
|
From page 54... ...
54 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management category. The Delphi process is a method of group decision making and forecasting that requires the subject-matter experts and decision makers to work toward a consensus decision through iterations of objective analysis and discussion.
|
From page 55... ...
Investment Strategies and Scenarios 55 The FHWA Scenario Planning Guidebook offers an extended description of scenario planning and some of the benefits of the practice within a state DOT: "Scenarios combine the trends and variables identified [in a baseline analysis] and values, goals, and aspirations identified [for the agency]
|
From page 56... ...
56 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management Figure 5-4. North Carolina DOT structure condition targets and scores (Varma and Proctor 2013)
|
From page 57... ...
Investment Strategies and Scenarios 57 life. The associated financial plan can be linked to the targeted performance and conditions of the assets identified in the TAMP" (Varma and Proctor 2015a)
|
From page 58... ...
58 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management future based on expected funding levels. Again, you should have established the funding levels in the steps leading up to this point; this scenario is where you will test your assumptions and projections.
|
From page 59... ...
Investment Strategies and Scenarios 59 list of projects to include at this point other than those projects currently underway. However, if your agency has a robust prioritization process and has defined planned work in some detail, then you may already have an extensive list of projects at this stage.
|
From page 60... ...
60 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management Step 5: Identify Candidate Projects Once the budget is established by investment category you can now identify candidate projects to include in your investment scenarios. These are the projects you may perform given available funding.
|
From page 61... ...
Investment Strategies and Scenarios 61 Step 7: Revise Prediction of Future Conditions At this point, you may have a new set of projects than those you identified in Step 2. With the new list of projects, repeat Step 3 to re-run your management systems to obtain revised predictions of future conditions for each scenario.
|
From page 62... ...
62 A Guide to Developing Financial Plans and Performance Measures for Transportation Asset Management Step 10: Document Assumptions and Investment Strategies Now document all the work you have done to develop the scenarios, utilize the management system, and allocate funding. This documentation will detail your investment strategy and how you arrived at it.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.