Infrastructure planning and management

1. Civil Engineering Dept. Master Program Infrastructure planning and management Lecture(4) 2013-2014

2. Measurement of System performance Infrastructure performance measurement Infrastructure performance measurement must be multidimensional, reflecting the full range of social objectives set for infrastructure system . The performance of infrastructure could be measured by effectiveness, reliability, and cost.

3. Measurement of System performance

6. Examples of Measures of System Reliability

7. Examples of Measures of System Cost

8. Losses of Value of Infrastructure Facilitates

9. Losses of Value of Infrastructure Facilitates • Condition of being antiquated, old-fashioned, or out-of-date • No longer meets current needs or expectation levels • Aging, technology, standard change • 2-yr old computers good example • Inability to meet changing performance requirements

10. Obsolescence & Service Life • “Always remember that someone, somewhere is making a product that will make your product obsolete” • -Georges Doriot • “Planned obsolescence” by Vince Packard’s The Waste Makers • Practice of deliberately designing products to last for a shorter period of time • Systemically doing this leads to inferior products

11. Obsolescence & Service Life, What Causes It? • Technological change • Regulatory change • SDWA forced upgrades • Economic / social changes • Value / behavior changes

12. Service vs. Physical Lives • Physical Lives: time it takes for infrastructure to wear out/fail • Predicting this may be irrelevant • Service life: time actually used • In general these 2 are different • Power plants become obsolete because of technology/policy changes • In some cases, tax code drives expectations

13. Service Lives, Connections • “Design service life” only meaningful if defined in terms of obsolescence • Assumptions about lifetime will likely change over time • Infrastructure seldom abandoned before replacement in place • Expectations will increase • Need to consider expectations and deterioration functions

14. Service Lives, Rates of Change • Information economy is making older transport modes obsolete • E.g., ground -> air shipping • How long should infrastructure last? • Physical or service? • “How long do you want to use it?” • Where will it go when we’re done? • What could we do with Roman roads now?

15. Service Lives, Strategies to Mitigate • Plan and design for flexibility • Build to assure optimum performance level is achieved • Monitor change to defer obsolescence • Refurbish and retrofit early

16. Cost-Effectiveness Measures for Projects of Routine Nature Aims of Cost-Effectiveness Measures

17. Methods for comparing and Prioritizing :Infrastructure Alternatives

19. Parameters commonly used for formulas involving an interest rate

20. Sample Cash Flow Diagram F n P A A A A A F P A A A A A

21. Common formulas for equivalency Calculations Single amount

22. Uniform series

23. Examples A project costs $40,000,000 and takes five years to construct. If all of this money is borrowed at the beginning of construction, how much money is owed by the sponsor when the project is ready to operate? If the money is borrowed in five equal installments, how much is owed? In each case, assume 7 percent interest for money borrowed. F=?? 40M$ F=?? F=F1+F2=38,005,912+11,220,413 =49,226,325M$ 8M$ 8M$ 8M$ 8M$ 8M$

24. Homework

25. Solving the following question in the Handbook 6.1,6.2,6.3

26. Thanks for your attention!