Daeseok HAN

Dept. of Urban Management, Graduate School of Engineering,

Kyoto University, Japan

*Contact : han.d@at8.ecs.kyoto-u.ac.jp

2010. 5. 31

Current Status, Experiences and Perspectives of

Asset Management in South Korea

-By focusing PMS software implementation issues-

General description

If someone ask the Korean PMS ?

We have….

but it is still primary stage

But, we have recognized its importance

So, now we are trying to enhance Korean PMS

Demand of Infrastructure will be increased

Population will be increased

Economic growth will be continued

Capacity of Infrastructure reaches maximum level

Construction demands becomes decreased

Maintenance demands becomes increased

Maintenance budget > Construction budget

Vietnam has enough potential to be developed country !Vietnam would go through similar procedures

Time to construct(developing country)

Time to maintain(developed country)

“How to effectively manage huge infrastructures by this small budget ?”

But, not enough!!

Economic Growth and Road Infra.

Economic Growth and Road Infra.

Population

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

19

75

19

76

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

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85

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86

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87

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97

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98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

Year

No

. of v

eh

icle

s(th

ou

san

d)

0

5

10

15

20

25

30

35

40

45

50

I ncr

ease

rat

e(%

)

No. of vehicle Increase rate(%)

0

10,000

20,000

30,000

40,000

50,000

60,000

19

75

19

76

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

Year

Po

pu

latio

n(t

ho

usa

nd

)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

I ncr

eas

e ra

te(%

)

Population increase rate

Economic (No. of Vehicle)

Road length Road maintenance budget

Source: Korea Statistical Information System Source: Korea Statistical Information System

Source: Do et al., 2008 Source: Do et al., 2008

No construction!

Problem on Maintenance Budget

Enough budget ?? Reasonable budget !!

Why ?Trend of road maintenance budget

Not by the result of AMS

But by the political reasons

Benefit of the PMS

Government can save budget by optimized strategy

Road agency can estimate and request “Reasonable budget” based on the objective analysis result (Not the enough budget)

Importance of PMS in Korea

Scale of pavement management market in Korea

Road asset occupies 54.72% in NPV from total national infrastructure asset value in Korea (Ahn and Kim, 2006)

Road maintenance budget occupies more than 70 percents

As time goes by, Vietnam may have to allocate much budget for road maintenance with road construction

Transportation related budget allocationAsset Value

0

20

40

60

80

100

120

140

160

180

200

Tota

l val

ue (

trill

ion

won

) 54.72%

Source: Do, 2009 Source: Do, 2009

PMS history in Korea

Korea has PMSs for Expressway, National highway, Airport pavement, but most local governments do not have one’s PMS (except for Seoul, and icheon city)

Major history of the PMS in national highway (Do, 2009 (revised)):

1986 Start of inspection for national highway

1987 Intro. of inspection technology and tool from France

1997 Intro. of high-tech inspection equipment (ARAN)

Application of super-pavement

2001 Upgrading of economic analysis process (by HDM-4, RealCost)

2008 Developing advanced inspection car and database

2010 Start of a R&D project for developing customized PMS software (in planning stage)

(Unofficially)

Today’s focus

Problems of Korean PMS are…

Disturbed cost-effective budget allocation and use

Subjective budget allocation

Quality of inspection data

Technical dependence

Neglecting importance of the AMS (lack of experts)

Lack of customized database

Lack of customized PMS analysis software

Disturbed reliable PMS plan, operation, and analysis

Disturbed flexible application and domestication of PMS

Disturbed making sustainable PMS plan in future

Disturbed systematic data accumulation and effective use

Disturbed objective decision making for road investment

Resulted dependence on the expert system under field experience

Efforts for Korean PMS (Equipment)

Developing advanced inspection equipment

Efforts for Korean PMS (Database)

Developing Integrated database

A GIS-based integrated database has been adopted & applied to reduce overlapped budget allocation as an available alternative

Although several sub-systems have incorporated by GIS capabilities, the fully integrated GIS D/B functions have not yet been implemented

Efforts for Korean PMS (Software)

Introduction of ready-made PMS software (HDM-4)

Not for estimating total budget but for priority of maintenance

Application for post-evaluation of a super-pave project

Limitations of HDM-4

Too much data requirement for domestication and calibration

Korean PMS conditions were not matched with HDM-4 requirement

Many systematic errors and limitations as the PMS model

Reliability of estimation result

Moreover, black box, technical dependence, high price, etc.

Let’s develop customized Korean PMS !!!

Finally,

A HDM-4 expert say ”Please don’t use HDM-4”

Lessons from Korean PMS

PMS must be introduced from the initial stage

Road agency, also government must understand importance of AMS

Budget allocation must be reasonable under objective DSS

Data quality is most important factor for establishing sustainable PMS

Government must invest money and time for developing customized PMS analysis software that helps all of decisions for road investment

Government must invest budget for the bringing up of experts of PMS

Introduction timing of PMS

Importance of PMS

Budget allocation

Importance of data inspection

PMS experts

PMS analysis software

“Database, Management, and PMS analysis”

Database

Management

PMS analysis

Pavement data inventory

Annual (short-term) M,R&R plan Operation of PMS activities Annual PMS report

Pavement deterioration forecasting Life Cycle Cost Analysis(LCCA) Accounting for budget optimization

Roles of the PMS Software

“Past, Present and Future”

1. Ready-made PMS software

2. Modification of ready-made PMS software

3. Development of customized PMS software

Three options for PMS software implementation (by Uddin, 1992)

Evaluation index Ready-made

Modifying-readymade

Customized

Application Cost (Budget + time) Ο / Χ Χ / Δ Χ

Initial application (effort to develop) Ο Δ Χ

Operation Matching current condition (data) Χ Δ / Ο Ο

Satisfying current objective (result) Χ Δ / Ο Ο

Preparation Extending future demand (function) Χ Δ / Ο Ο

Copyright Χ Χ / Δ Ο

Note : Ο = Good, Δ = Reasonable, Χ = Bad

About the PMS Software Implementation

What is the best implementation strategy ?

By order of

the “ready-made, modifying ready-made, and customized software” ??

VERY difficult to abandon (or change) one’s PMS structures

By development of

the “customized software” at the outset of PMS implementation ??

ALSO difficult due to the time, money, and technical problems

The “Hybrid System” can be the best solution,

regardless of any PMS situation

The Best Strategy for PMS Software

Objective of the VHPMS

‘International standard of pavement management system’

Every country

Every condition

Every objective

Functions of the VHPMS

Function / level

Core level Semi-core level

Recommended level

Advanced level Unique level(Extendable by users)

Accounting Short term accounting

Mid-long term accounting

Optimization-I(Network-based)

Optimization-II(Section-based)

Updating their original account system

Economic Analysis

Agency cost Agency cost &User cost

Agency cost &User cost &Economic indices

Adding social, and environmental cost

Workzone model,Add the other expenditures

Forecasting Deterministic-ISimplified regression

Deterministic-IIMultiple regression

Stochastic – IMarkov exponential hazard model

Stochastic – IILocal Mixture hazard model

Stochastic – IIIMCMC, Hidden Markov model

Management Work demand / Work effect

Work design Budget estimation

Optimization(Short term)

Web-based system

Database VariousSearching

Data Exportation

Support for external models

Visualization(with GIS)

Including the other road facilities

+ αBasic functions

System Architecture of the VHPMS

Database part

Management part

Forecasting part

Life cycle cost part

Accounting part

Very Complex… So, customization strategy should be highlighted

One find other’s size VS. One find one’s size

MemberA

MemberB

MemberC

Developer(VHPMS)

VHPMS(A type)

VHPMS(B type)

VHPMS(C type)

MemberA

MemberB

MemberC

VHPMS(A type)

VHPMS(B type)

VHPMS(C type)

Developer(VHPMS)

Customized by each memberCustomized by developer It makes much standardized customization But, it makes incorrect adoption Every member must rely on developer Every member must wait for their order

Every member can make correct adoption They can modify their model at once But, it takes time to understand and customize the VHPMS

Customization Philosophy

General versionGeneral version

Compatibility with existing systems

“Nobody can easily discard current

system”

Supporting current PMS software: Database system can

support external models which are now applying for their PMS (e.g.

HDM)

Supporting required functions: All functions are designed as an

independence module so that the function can be used for existing

system

The biggest obstacle for vivid implementation

At the first stage, the VHPMS would be consistence with each

user’s existing system

Strategy for compatibility

System Operation and Improvement

KOREA

VHPMS-K1.1

JAPAN

VHPMS-J1.0

VIETNAM

VHPMS-V1.0

Developer

VHPMS

ver.1.00Ben

chm

ark(

Acc

ept)

Ignore(useless

)

Can you help me?? I can help you!! Let’ go together !!!

If one member develops new function, the others can benchmark it.

Developer have to consider the function to the general versionKOREA

VHPMS-K1.1

JAPAN

VHPMS-J1.1

VIETNAM

VHPMS-V1.0

Developer

VHPMS

ver.1.1

New Member

VHPMS-1.1

Toss

the

func

tion

Nothing happen

Activities to facilitate implementation

How to operate the VHPMS after distribution (Plan)

Opening an official website

Opening training course

Editing manual series

Opening periodical symposium about case studies of members

Technical support (could be business model)

Arousing joint ownership among the users will be the most important factor that makes an international standard of the PMS software

Conclusion

If you don’t prepare sustainable PMS from the outset, you will undergo similar situation with Korea

Korea has undergone many problems due to late and poor introduction of the AMS

The framework of the PMS is very difficult to change once it established

The key point is developing customized PMS software

Until Now,

Also,

You have to know,

By the experience,

“How about the hybrid system for your PMS ?”