Chapter 4: Asset Information Management

Title: Towards value based asset management

Author(s): Ali Z. Rezvani, Farnaz Farzan, Mohsen A. Jafari

Address: Department of Industrial & Systems Engineering, Rutgers, The State University of New Jersey, 96 Frelinghuysen Road, Piscataway, NJ 08854, USA | Department of Industrial & Systems Engineering, Rutgers, The State University of New Jersey, 96 Frelinghuysen Road, Piscataway, NJ 08854, USA | Department of Industrial & Systems Engineering, Rutgers, The State University of New Jersey, 96 Frelinghuysen Road, Piscataway, NJ 08854, USA

Reference: International Conference on Product Lifecycle Management 2009 pp. 208 - 217

Abstract/Summary: Conventional cost based lifecycle approach in infrastructure asset management can no longer handle different aspects of an asset from functionality to social impacts over its lifecycle. In this work, a value based paradigm is introduced for decision making process over the lifecycle of an asset. Cost based asset management is compared to value based on the basis of a single value dimension. We will discuss the differences through the outcomes that the two decision models generate. We will conclude the article with a discussion on the value of information on a conditional basis. By conditioning on the decision making paradigm, we define a simple metrics model to compute the value of the information necessary to optimize within that paradigm.

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