Decision Making for Repair Versus Replacement of Highway Operations Equipment (2023) / Chapter Skim
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From page 35... ...
P A R T I I I User Manual for the 4R Tool
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37 1.1 Background The decision to repair, rebuild, replace, or retire a downed piece of equipment can represent a major capital expenditure for fleet operators. A nonfunctioning piece of equipment can severely impact the ability for a transportation agency to successfully deliver services and perform its mission, and the criticality of the equipment in question may drive an immediate response to making a repair, rebuild, replace, or retire decision.
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38 Decision Making for Repair Versus Replacement of Highway Operations Equipment 1.3 4R Tool Capabilities The 4R Tool has two independent modules that have different capabilities. The intent of the 4R Tool is to enable users to evaluate repair, rebuild, replace, and retire options when a particular piece of highway maintenance equipment fails and to determine which option represents the best value for the fleet and agency.
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39 The 4R Tool is intended to provide DOT fleet managers with guidance for systematically making repair, rebuild, replace, or retire decisions for maintenance equipment. It is a management tool for DOTs and fleet personnel (similar to any number of other documents and supporting analytical applications)
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40 Decision Making for Repair Versus Replacement of Highway Operations Equipment Data Inputs May Be Unreliable Certain inputs, like accumulated LTD cost, require high-quality data derived from the work order process. Erroneously allocated costs, or unallocated costs, will result in an inaccurate LTD cost that may skew outputs.
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Limitations of the 4R Tool 41 source a replacement piece of equipment to perform a critical function while waiting for an extended period for the necessary parts to repair the downed equipment. For example, an agency could be considering what to do with a downed snowplow truck.
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42 e 4R Tool can be downloaded from the National Academies Press website (nap.nationalacademies.org) by searching for NCHRP Research Report 1046: Decision Making for Repair Versus Replacement of Highway Operations Equipment.
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43 Operation of the 4R Tool requires the input of specific data to help fleet managers determine the best repair, rebuild, replace, or retire decision for a downed piece of equipment. These data can be either quantitative or qualitative.
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Condition Sliding scale Y An evaluation of whether the condition of a given unit is "better," "worse," or "average" compared to other units of the same age and class. Condition is intended to reflect a physical and operational evaluation of a unit that is not otherwise reflected in its age or total usage.
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Data Preparation 45 (continued on next page) Repair history Sliding scale N LTD chronologic and categorial history of repairs and preventive maintenance services performed on an equipment item.
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46 Decision Making for Repair Versus Replacement of Highway Operations Equipment Repair within rebuild Sliding scale N A rebuild decision expands the scope of a repair. This question allows the user to indicate the extent to which a rebuild completes the repair.
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Data Preparation 47 Utilization (forecast) Sliding scale Y The expected future use of an equipment item, equipment type, or equipment class over a defined time period.
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48 Once the user has identified all the data sources necessary for operation of the 4R Tool, the users can begin input and operation. This chapter describes in detail how to operate the 4R Tool; outlines its organization; and provides a step-by-step approach for data input, color scheme, structure, and navigation of the tool's tabs and analysis results.
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Running the 4R Tool Decision Module 49 5.3 Color Scheme To help users quickly identify input cells, the 4R Tool is formatted with different colors. Table 5 provides a description of all cell format types used in the 4R Tool.
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50 Decision Making for Repair Versus Replacement of Highway Operations Equipment information. As shown in Figure 12, users can adjust sliders by clicking on the arrows underneath minimum and maximum values.
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Running the 4R Tool Decision Module 51 After answering all the questions on the Initiation and either the Rebuild vs. Repair or Replace vs.
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52 Decision Making for Repair Versus Replacement of Highway Operations Equipment The components of the Decision Module [noted as (2a)
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Running the 4R Tool Decision Module 53 fine-tuning the score toward 0 or toward 100, but do not affect the outcome from the responses to the first four questions. Figure 20 provides a quick example of the how the one of the first questions in the Initiation tab can affect next steps.
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54 Decision Making for Repair Versus Replacement of Highway Operations Equipment As with the Initiation tab, the eight input questions fall into one of two groups: (1) those that affect the score and determine whether the right choice is to rebuild, or (2)
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Running the 4R Tool Decision Module 55 on the Output tab. e closer this score is to 0 or 100, the stronger the recommendation.
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56 Decision Making for Repair Versus Replacement of Highway Operations Equipment Conditionally formatted cells to the right show the user the relative weighting for each input question a er the slider has been adjusted. Adjustment of an input question's weighting changes how the 4R Tool considers the input questions when calculating decision outcomes.
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Running the 4R Tool Decision Module 57 In addition, decision outcomes are illustrated in the decision tree figure in the Intro tab. A green checkmark or red X appears between decision points, depending on the on the outcome, as shown in Figure 32.
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58 Decision Making for Repair Versus Replacement of Highway Operations Equipment Figure 32. Decision tree with decision outcome icons.
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Running the 4R Tool Decision Module 59 Each of the four potential outcomes require that different sets of conditions be met. A Repair outcome is achieved if the following two conditions are satisfied: • A score over 50 is achieved on the Initiation tab.
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60 This module is housed in a single tab labeled Economic Analysis. This module estimates the cost rate ($/h or $/mile)
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Running the 4R Tool Economic Analysis Module 61 Figure 34. Required inputs for Economic Analysis Module.
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62 Decision Making for Repair Versus Replacement of Highway Operations Equipment Depreciation under the declining balance method is calculated with the following formula: Declining Balance Depreciation CBV DR= × Where CBV = Current book value, and DR = Depreciation rate. The declining balance calculation does not consider the salvage value in the depreciation of each period.
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Running the 4R Tool Economic Analysis Module 63 $0 $20 $40 $60 $80 $100 $120 $140 0 5,000 10,000 15,000 20,000 25,000 To ta l C os t R at e ($ /h ) Age Going Forward (hours)
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64 Decision Making for Repair Versus Replacement of Highway Operations Equipment Summary Output Year Going Forward Rebuild instead of Repair Replace instead of Repair Rebuild instead of Replace 1 $0 -$2,000 $2,000 2 $0 -$4,000 $4,000 3 $0 -$6,000 $6,000 4 $0 -$8,000 $8,000 5 $0 -$10,000 $10,000 6 $0 -$12,000 $12,000 7 $0 -$14,000 $14,000 8 $0 -$16,000 $16,000 9 $0 -$18,000 $18,000 10 $0 -$20,000 $20,000 Cost of Choosing Figure 40. Cost of choosing alternatives.
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65 The Output tab has been formatted so that the user can easily print out the results of the analysis for record keeping or distribution. To print, click on File > Print.
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66 Decision Making for Repair Versus Replacement of Highway Operations Equipment Figure 42. Page 1 of printout: summary graphics in Output tab.
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Outputs and Printing 67 Figure 44. Page 3 of printout: summary of inputs from the Rebuild vs.
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68 This chapter describes the inputs and outputs of nine case examples using the 4R Tool Decision Module. Table 6 summarizes these examples, including a description of the example, the equipment type, and the recommended outcome.
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Use Case Examples of Decision Module 69 8.1 Example 1: New Equipment with Minor Damage Narrative: A 3/4 ton pickup truck sustained minor to moderate right front fender and mirror damage when the operator lost control of the unit on ice. The equipment struck roadside bushes.
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Figure 45. Example 1 -- Initiation tab user entries.
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Repair vs. Rebuild Score A higher score indicates Rebuild is a better option Points (1)
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72 Decision Making for Repair Versus Replacement of Highway Operations Equipment 8.2 Example 2: Old Equipment with Major Damage or Major Component Failure Narrative: A 6x4, 10 CY snowplow truck failed its annual inspection due to a cracked frame. The frame failure was caused by advanced corrosion.
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Initiation Score A higher score indicates Repair is a better option 2.9 Points Score Check box to exclude variable User Inputs Units More Info Example 0 $58,225 Dollars More Info $1,000 $16,400 Dollars More Info $10,000 User Inputs Units Example 0 15.0 Years 1.5 12.0 Years 10.0 0 Very Poor Average Very Good 2 Operating funds ARE AVAILABLE to cover the cost of needed repairs. 5 Lower than typical Average Higher than typical 0 Very short Average Very long User Inputs Units Example 1 $11.83 per mile $5.00 $9.57 per mile $10.00 0 Lower than typical Typical Higher than typical 0 External financial coverage ARE NOT AVAILABLE 2 Environmental contraints DO NOT DICTATE 1 Very low Average Very high Instructions: For each of the 11 questions below, adjust values in pale and dark yellow input cells.
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Figure 48. Example 2 -- Replace vs.
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Use Case Examples of Decision Module 75 8.3 Example 3: Midlife Equipment with Significant Damage or Major Component Failure Narrative: The operator of this loader mistakenly filled the hydraulic system with diesel fuel and proceeded to work the piece of equipment to load gravel until the item failed. The hydraulic system and all ancillary components failed due to contaminated hydraulic system lubricant, requiring a complete rebuilding of the system.
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Initiation Score A higher score indicates Repair is a better option 72.2 Points Score Check box to exclude variable User Inputs Units More Info Example 4 $38,960 Dollars More Info $1,000 $55,500 Dollars More Info $10,000 User Inputs Units Example 4 9.0 Years 1.5 12.0 Years 10.0 5 Very Poor Average Very Good 2 Operating funds ARE AVAILABLE to cover the cost of needed repairs. 2 Lower than typical Average Higher than typical 0 Very short Average Very long User Inputs Units Example 5 $29.88 per hour $5.00 $37.33 per hour $10.00 1 Lower than typical Typical Higher than typical 0 External financial coverage ARE NOT AVAILABLE 2 Environmental contraints DO NOT DICTATE 0 Very low Average Very high Instructions: For each of the 11 questions below, adjust values in pale and dark yellow input cells.
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Repair vs. Rebuild Score A higher score indicates Rebuild is a better option Points Check box to exclude variable (1)
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78 Decision Making for Repair Versus Replacement of Highway Operations Equipment 8.4 Example 4: Failure of Critical Equipment Needed for Upcoming Seasonal Work Narrative: This single-axle truck is utilized on a narrow, mountainous, two-lane state highway that is notorious for its hairpin turns. The 37-mile-long state route connects a highly popular ski venue to a heavily traveled interstate highway.
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Use Case Examples of Decision Module 79 Repair vs. No Repair Score A higher score indicates Repair is a better option 15.1 Points Score 4 $36,750 Dollars $42,656 Dollars 0.86 Ratio 4 Raw Weighted 8 Hours Start 0 15.1 15.1 12 Hours 25 1 1 0.67 Ratio 25 183.9 183.9 4 25 25 Very Poor Average Very Good End 100 0 Operating funds ARE NOT AVAILABLE to cover the cost of needed repairs.
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Replace vs. Retire Score A higher score indicates Replace is a better option than Retire Points (1)
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Use Case Examples of Decision Module 81 8.5 Example 5: External Insurance Claim with Possible Third Party Liability Recovery that Delays Decision Narrative: This equipment has been involved in a moderately serious incident. Law enforcement has deemed that the operator of the commercial truck involved was at fault.
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82 Decision Making for Repair Versus Replacement of Highway Operations Equipment Repair vs. No Repair Score A higher score indicates Repair is a better option 27.0 Points Score 2 $128,440 Dollars $120,000 Dollars 1.07 Ratio 5 Raw Weighted 5 Years Start 0 27.0 27.0 10 Years 25 1 1 0.45 Ratio 25 172.0 172.0 4 25 25 Very Poor Average Very Good End 100 3 Operating funds ARE AVAILABLE to cover the cost of needed repairs.
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Replace vs. Retire Score A higher score indicates Replace is a better option than Retire Points (1)
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84 Decision Making for Repair Versus Replacement of Highway Operations Equipment 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 Narrative: This equipment is assigned to a major DOT-operated airport and has been involved in a serious incident with a commercial aircraft during the season's first major winter event. The DOT operator was deemed to be at fault.
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Use Case Examples of Decision Module 85 Repair vs. No Repair Score A higher score indicates Repair is a better option -0.7 Points Score 0 $91,480 Dollars $14,800 Dollars 6.18 Ratio 0 Raw Weighted 23 Years Start 0 -0.7 -0.7 15 Years 25 1 1 1.53 Ratio 25 199.7 199.7 1 25 25 Very Poor Average Very Good End 100 3 Operating funds ARE AVAILABLE to cover the cost of needed repairs.
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Replace vs. Retire Score A higher score indicates Replace is a better option than Retire Points (1)
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Use Case Examples of Decision Module 87 8.7 Example 7: Major Equipment Component Failure Caused by DOT Operator Misuse or Abuse Narrative: The month is May. It is the first highway mowing program of the season.
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Initiation Score A higher score indicates Repair is a better option 15.0 Points Score Check box to exclude variable User Inputs Units More Info Example 0 $17,373 Dollars More Info $1,000 $7,200 Dollars More Info $10,000 User Inputs Units Example 1 13.0 Years 1.5 12.0 Years 10.0 2 Very Poor Average Very Good 2 Operating funds ARE AVAILABLE to cover the cost of needed repairs. 2 Lower than typical Average Higher than typical 2 Very short Average Very long User Inputs Units Example 4 $44.83 per hour $5.00 $47.27 per hour $10.00 2 Lower than typical Typical Higher than typical 0 External financial coverage ARE NOT AVAILABLE 2 Environmental contraints DO NOT DICTATE 2 Very low Average Very high Instructions: For each of the 11 questions below, adjust values in pale and dark yellow input cells.
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Replace vs. Retire Score A higher score indicates Replace is a better option than Retire Points Check box to exclude variable (1)
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90 Decision Making for Repair Versus Replacement of Highway Operations Equipment 8.8 Example 8: Equipment Vandalism Narrative: The month is September. This equipment was parked along a state highway in a remote section of the state during Labor Day weekend.
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Initiation Score A higher score indicates Repair is a better option 69.5 Points Score Check box to exclude variable User Inputs Units More Info Example 5 $52,650 Dollars More Info $1,000 $78,500 Dollars More Info $10,000 User Inputs Units Example 4 8.0 Years 1.5 12.0 Years 10.0 4 Very Poor Average Very Good 2 Operating funds ARE AVAILABLE to cover the cost of needed repairs. 1 Lower than typical Average Higher than typical 0 Very short Average Very long User Inputs Units Example 2 $46.96 per hour $5.00 $41.74 per hour $10.00 4 Lower than typical Typical Higher than typical 0 External financial coverage ARE NOT AVAILABLE 2 Environmental contraints DO NOT DICTATE 0 Very low Average Very high Instructions: For each of the 11 questions below, adjust values in pale and dark yellow input cells.
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Repair vs. Rebuild Score A higher score indicates Rebuild is a better option Points Check box to exclude variable (1)
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Use Case Examples of Decision Module 93 8.9 Example 9: Old Equipment with Major Damage or Component Failure Narrative: Repair, rebuild, replace, or retire funding is available. Supply chain delays and resultant constrained OEM manufacturing capabilities dictate dealer reluctance to accept new orders, and the OEM order bank backlogs create delivery times that are excessively long and uncertain.
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Figure 61. Example 9 -- Initiation tab user entries.
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Figure 62. Example 9 -- Replace vs.
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96 This chapter describes the inputs and outputs of an example scenario for the 4R Tool Economic Analysis Module. Narrative: A DOT must determine whether it makes economic sense to repair, rebuild, or replace a unit.
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Use Case Example of Economic Analysis Module 97 three of the common depreciation methods, including an option for not using depreciation. However, selecting None results in no depreciation being calculated, with the unit value being fixed over the planning period.
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98 Decision Making for Repair Versus Replacement of Highway Operations Equipment 9.2 Inputting Data Summary data were inserted into the Economic Analysis Module in Box 1 and Box 2 to determine the cost rate for each of the three decision options. Figures 64–70 display the data that were entered into the Economic Analysis Module for each section of the workbook and the outputs that were obtained through operation of the model.
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Use Case Example of Economic Analysis Module 99 Box 2. Inputs and calculations below correspond to the respective outcome (e.g., Repair)
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100 Decision Making for Repair Versus Replacement of Highway Operations Equipment Rebuild Rejuvenation (Age rewind in hours) 2,000 Rebuild cost ($)
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Use Case Example of Economic Analysis Module 101 Replace Purchase Price ($) $150,000 Depreciation Method Declining Balance Term (yrs)
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102 Decision Making for Repair Versus Replacement of Highway Operations Equipment To ta l C os t R at e ($ /h o r $ /m i) Age Going Forward Figure 68.
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Use Case Example of Economic Analysis Module 103 Figure 70. Cost over time of choosing various alternatives.
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104 This chapter discusses four key visualizations associated with the 4R Tool. 10.1 Summary of Scores The purpose of the pressure gauge visualizations is to help users understand the strength of a recommended outcome.
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Communications Guide 105 Figure 71. Pressure gauge graphics.
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106 Decision Making for Repair Versus Replacement of Highway Operations Equipment Figure 73. 4R Tool decision tree.
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Communications Guide 107 Must Be Met for Repair Fine Tuning Factors Must Be Met for Rebuild Fine Tuning Factors Must Be Met for Replace Fine Tuning Factors Figure 74. Detailed decision tree.
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108 References Drinkwater, R
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109 A P P E N D I X A Survey Questions 1. Please indicate your name, title, and agency (e.g., _____ State DOT)
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110 Decision Making for Repair Versus Replacement of Highway Operations Equipment c. Budget constraints d.
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111 A P P E N D I X B Survey Results Responses to content-focused survey questions are provided below. Questions to gather contact information (Q1 and Q10)
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112 Decision Making for Repair Versus Replacement of Highway Operations Equipment Q4. Does your agency use a decision support system (DSS)
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Survey Results 113 Q6. Do repair vs.
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114 Decision Making for Repair Versus Replacement of Highway Operations Equipment Q7. Is your repair vs.
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Survey Results 115 Q8. Which of the following factors most influence your repair vs.
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116 Decision Making for Repair Versus Replacement of Highway Operations Equipment Q9. Please provide any additional information on how your agency makes repair vs.
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Survey Results 117 Response Total Cost of Ownership is the driving factor. Our agency is mandated to spend 80% of our capital replacement on snowplow equipment.
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118 A P P E N D I X C Interview Guide The following questions were used to guide discussions in interviews with fleet managers. Background Information 1.
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Interview Guide 119 Outputs 1. How are repair v.
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120 Annotated Bibliography A P P E N D I X D The research team's review of literature began with a high-level scan of more than 40 resources. The search for information covered a range of areas: academia and journals; government guidebooks and handbooks; industry association reports and blog articles; and conference presentations.
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Annotated Bibliography 121 Hastings, N
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122 Decision Making for Repair Versus Replacement of Highway Operations Equipment Beichelt, Frank.
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Annotated Bibliography 123 separate activity rather than a part of operations, as it is typically viewed. Furthermore, it noted the lack of correlation between failures and equipment age.
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124 Decision Making for Repair Versus Replacement of Highway Operations Equipment operating costs. The results demonstrated an enhanced ability to optimize fleet management decisions compared to results obtained by current practices.
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Annotated Bibliography 125 Funding Circle.
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Abbreviations and acronyms used without denitions in TRB publications: A4A Airlines for America AAAE American Association of Airport Executives AASHO American Association of State Highway Officials AASHTO American Association of State Highway and Transportation Officials ACI–NA Airports Council International–North America ACRP Airport Cooperative Research Program ADA Americans with Disabilities Act APTA American Public Transportation Association ASCE American Society of Civil Engineers ASME American Society of Mechanical Engineers ASTM American Society for Testing and Materials ATA American Trucking Associations CTAA Community Transportation Association of America CTBSSP Commercial Truck and Bus Safety Synthesis Program DHS Department of Homeland Security DOE Department of Energy EPA Environmental Protection Agency FAA Federal Aviation Administration FAST Fixing America's Surface Transportation Act (2015) FHWA Federal Highway Administration FMCSA Federal Motor Carrier Safety Administration FRA Federal Railroad Administration FTA Federal Transit Administration GHSA Governors Highway Safety Association HMCRP Hazardous Materials Cooperative Research Program IEEE Institute of Electrical and Electronics Engineers ISTEA Intermodal Surface Transportation Efficiency Act of 1991 ITE Institute of Transportation Engineers MAP-21 Moving Ahead for Progress in the 21st Century Act (2012)
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D ecision M aking for Repair Versus Replacem ent of H ighw ay O perations Equipm ent Transportation Research Board 500 Fifth Street, NW Washington, DC 20001 ADDRESS SERVICE REQUESTED ISBN 978-0-309-69851-1 9 7 8 0 3 0 9 6 9 8 5 1 1 9 0 0 0 0
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