Pudney, Steven Grant (2010) Asset renewal decision modelling with application to the water utility industry. PhD thesis, Queensland University of Technology, Australia.
Abstract
Reliable infrastructure assets impact significantly on quality of life and provide a stable foundation for economic growth and competitiveness. Decisions about the way assets are managed are of utmost importance in achieving this. Timely renewal of infrastructure assets supports reliability and maximum utilisation of infrastructure and enables business and community to grow and prosper. This research initially examined a framework for asset management decisions and then focused on asset renewal optimisation and renewal engineering optimisation in depth. This study had four primary objectives. The first was to develop a new Asset Management Decision Framework (AMDF) for identifying and classifying asset management decisions. The AMDF was developed by applying multi-criteria decision theory, classical management theory and life cycle management. The AMDF is an original and innovative contribution to asset management in that: · it is the first framework to provide guidance for developing asset management decision criteria based on fundamental business objectives; · it is the first framework to provide a decision context identification and analysis process for asset management decisions; and · it is the only comprehensive listing of asset management decision types developed from first principles. The second objective of this research was to develop a novel multi-attribute Asset Renewal Decision Model (ARDM) that takes account of financial, customer service, health and safety, environmental and socio-economic objectives. The unique feature of this ARDM is that it is the only model to optimise timing of asset renewal with respect to fundamental business objectives. The third objective of this research was to develop a novel Renewal Engineering Decision Model (REDM) that uses multiple criteria to determine the optimal timing for renewal engineering. The unique features of this model are that: · it is a novel extension to existing real options valuation models in that it uses overall utility rather than present value of cash flows to model engineering value; and · it is the only REDM that optimises timing of renewal engineering with respect to fundamental business objectives; The final objective was to develop and validate an Asset Renewal Engineering Philosophy (AREP) consisting of three principles of asset renewal engineering. The principles were validated using a novel application of real options theory. The AREP is the only renewal engineering philosophy in existence. The original contributions of this research are expected to enrich the body of knowledge in asset management through effectively addressing the need for an asset management decision framework, asset renewal and renewal engineering optimisation based on fundamental business objectives and a novel renewal engineering philosophy.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Thesis advisor: | Ma, Lin and Mathew, Joseph |
| Uncontrolled Keywords: | asset renewal; asset management; asset decision framework; decision modelling; life cycle management; multi-attribute utility theory; option theory; real options analysis; process modelling; front end engineering; engineering philosophy |
| Index terms: | option, life cycle management, economic growth, cash flow, quality of life, real option, multi-attribute utility theory, philosophy, customer service, process modelling, management theory, health and safety, decision theory, body of knowledge, decision framework, modelling, decision criteria, water utility, renewal, competitiveness, asset management, real options analysis |
| Subjects: | financial management, market analysis, economic analysis, analytical methods, economic development, public and environmental health, asset management, infrastructure and transport systems, health safety and environment, decision analysis, philosophical studies, design economy, knowledge management, management, design analysis, service delivery, renovation and retrofit, value management, decision-making and optimization |
| Topics: | Sustainability, Research Practice, Project Management, Engineering Principles, Design Practice, Risk Management, Business Strategy, Information Management, Health and Safety, Cost Management |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here