Asset Performance Modeling
OPTIMAL SCHEDULING OF WATER AND WASTEWATER MAIN REPLACEMENT BASED ON WHOLE LIFE CYCLE COSTING
A powerful life-cycle cost analysis (LCCA) tool, InfoMaster LCCA enables a water or wastewater system to maintain the desired level of service in the most cost-effective manner. In particular, it lets utilities determine the optimal time to replace each pipe in their water and wastewater networks based on analytical, cost-effective, risk-based economic life-cycle cost management strategies; strengthen their infrastructure assets in a phased manner; and place these assets on the road to sustainability. It provides a perfect bridge to more proactive, proactively rehabilitate or replace their pipes on a continual basis rather than wait to repair failing or damaged ones until it is considerably more expensive and disruptive to system operations. It also helps them reduce the gap between available funding and current need for reinvestment.
ECONOMIC LIFE CYCLE COST ANALYSIS
InfoMaster LCCA arms water and wastewater utilities with sophisticated predictive analytics and modeling capabilities that help them accurately assess the aging processes of their pipes and estimate their remaining economic lifetimes and failure and severity potential and distribution over time. as the point in time when the present value of the future total ownership costs is no longer the lowest life cycle cost alternative (i.e., when it is cheaper to buy a new pipe). At that time, the pipe is replaced. InfoMaster LCCA predicts pipe deterioration and failures in the network, determines the optimal replacement date for each pipe, replaces any selected pipe assets, then moves to the next year and repeats the process on the updated pipe asset set. This enables users to ensure the smartest distribution of dollars spent on replacement and repair of their assets. It also and quality of service and keep assets performing at peak condition while making the most of limited budgets. Both net present value and equivalent uniform annual cost (EUAC) calculations can be considered. The former approach is period while the latter translates the required total investment
STRATEGIC ASSET MANAGEMENT
cost and accounting for failure risk (i.e., the product of failure likelihood and failure consequence) is the best basis for creating an optimal replacement strategy. The cost of owning an aging pipe warrants its replacement when it exceeds the new pipe’s ownership cost. InfoMaster LCCA balances capital (replacement) expenditure against marginal cost to minimize the overall cost of asset ownership. Marginal cost can be expressed as the present value of the expected risk cost (or consequences) of pipe failure, the accelerating cost to maintain it (maintenance cost) and declining level of service (operational cost). These costs can also include internal resources and overheads; leakage, additional pumping, and resiliency, greenhouse gas emissions, and health and safety. InfoMaster LCCA helps utilities effectively manage their critical physical assets while maintaining the desired level of service at the lowest life cycle cost. The optimum period for main replacement is determined by minimizing the present value of the total cost of ownership. This optimal replacement time represents the end of the pipe’s economic life.