Review of Asset Management Strategies in Road and Highway Development

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STRATEGIC ASSET MANAGEMENT
- ASSIGNMENT -1
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Contents
Introduction................................................................................................................................3
Article 1......................................................................................................................................3
Article 2......................................................................................................................................4
Article 3......................................................................................................................................4
Article 4......................................................................................................................................5
Article 5......................................................................................................................................5
Article 6......................................................................................................................................6
Article 7......................................................................................................................................6
Article 8......................................................................................................................................7
Article 9......................................................................................................................................7
Article 10....................................................................................................................................8
Article 11....................................................................................................................................8
Article 12....................................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11
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Introduction
The present report is prepared by considering the concept of Asset management strategy in
the road and highly infrastructure as it is a long term optimized approach which emphasis on
managing the assets. Holding and managing assets is an important part of any industry, for
this purpose preparation and implementing a strategic asset management plan is required. It
provides a detailed understanding of what assets are currently held, their current and future
value as well as the cost associated while disposing or managing them. Asset management
strategy is a framework which allows managers of road and highways infrastructure
development to reaches at decisions and communicates necessary information. The report
will include a peer-reviewed article on the given topic, i.e. Asset management strategy which
helps people to develop their understanding upon strategies for managing asset while
developing roads and highways.
Article 1
Sitzabee, W., & Harnly, M. (2013). A Strategic Assessment of Infrastructure Asset-
Management Modeling. Air & Space Power Journal, 27(6), 45–68.
The article represents the incorporation of asset management functions in corporate industries
so as to focus on planning and effective implementation of asset management principles in
day to day decision making. Due to budget constraints and scarce of resources, the efficiency
of maintaining and operating infrastructure get reduced, likewise civil engineers cannot
optimize their performance which affects the entire process of road and highways
development. In corporate industries, assets management process emphasis on identifying the
issues related with a shrinking budget, increasing demand for asset management functions at
vertical levels, deterioration of infrastructure and challenges include an external market.
Along with this, leaders involved in process of strategic asset management process intended
to balance the resources, decrease the stock of infrastructure of assets, and reduce the repair
or maintenance budget at a constant level in order to ensure planning and applying principles
of asset management.
In addition to this, this article also provides information about infrastructure development is
an integrated system with individual components; it operates individually as well as
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conjunction with other systems. Hence, the linkage between infrastructure development
activities and assets requires effective management and maintenance of isolated projects.
Article 2
Ruitenburg, R., Braaksma, A., & Design, P. (2017). Developing Asset Life Cycle
Management capabilities through the implementation of Asset Life Cycle Plans – an Action
Research project. 24th International Annual EurOMA Conference 2017, (24).
This journal article is providing information about asset life cycle management as it is a
strategic approach which is used in order to manage physical assets of the enterprise for their
complete life cycle. In infrastructure development of road and highways, the management or
maintenance of assets is a crucial activity for society at large as it involves production lines,
chemical plants, machinery etc. Highways develop also consider the electricity grid, roots of
trains and planes on efficient maintenance; it is important for project developers to
understand this thing. According to standard ISO 55000, assets management is a balancing of
costs, risks and opportunities against the expected performance of assets in order to achieve
strategic goals and objectives.
In Korea, infrastructure evolution and maintenance is continuing since past decades, there are
few disciplines and principles underwent to apply necessary changes thus to meet public
needs or demands. Throughout this development, an industry’s coordinated multidisciplinary
approach applies to human, physical and financial resources in order to manage the life cycle
of physical assets. It also helps in measuring current and future performance of assets which
contributes to defining costs and performance objectives. As the maintenance of physical
assets is taken into consideration as a necessary evil in road and highways development
because it is a tool which broke down had to fix before starting production. Taking corrective
maintenance is considered as a side-task for the production department; however as per the
time assets become more complex and create hurdles at the time of infrastructure
development.
Article 3
Snider, B. (2016). Failure prevention--The ultimate asset management strategy. Hydrocarbon
Processing, 47–52.
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This article provides guidance towards preventing failures in asset management strategy; it
includes that the main cause of losses is chemical complexes, refineries, gas processing
facilities and pipeline networks. So, the cost of these failures turns outs into millions and
billions; without permitting a firm there is a little hope of reducing these vital losses. In this
sense, failure prevention is an important activity in the asset management process instead of
performing inspections, taking corrective actions and examining data. At the time of road and
highways infrastructure development, failure prevention acts as a mindset which driven
objectives and becomes the central focus of activities. It is an effective measure for
accomplishing and sustaining a stable, safe, consistent and profitable development of
infrastructure which acts for public benefits and welfare.
Article 4
Ashuri, B., Lu, J., & Kashani, H. (2011). A real options framework to evaluate investments in
toll road projects delivered under the two-phase development strategy. Built Environment
Project and Asset Management, 1(1), 14–31.
This article is studying about optional frameworks which can acquire by managers of road
projects in order to ensure the effectiveness of all tasks or activities. The theory of financial
valuation framework is developed in order to measure the capital investment in toll road
projects which are delivered under a two-phase development plan. This approach is based on
applying the real options theory which focuses on price flexibility and embedded in a two-
phase development plan by measuring all risks involved it in. The given paper is
investigating the major capabilities include in asset life cycle plans, such as – strategic
information use, alignment of different disciplines, alignment of operations or tactics,
exerting influence over the asset over the whole organisation and a dual time perspective.
One of the major challenges occur in asset management strategy is threating the gap between
overall maintenance strategy, top management level and tactical level on this basis
managerial concepts are formulated, detailed and executed.
Article 5
Osman, H., & Nikbakht, M. (2014). A game-theoretic model for roadway performance
management. Built Environment Project and Asset Management, 4(1), 40–54.
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The prime motive of this article is to present a socio-technical framework which addresses
the behaviour of asset managers, politicians and roadway users against the performance of
asset management. In this relation, the approach helps to reduce the complex interactions of
agents involved in road and highways infrastructure development. There are some modelling
approaches involve in the domain of asset management practices which refers that due to
some failures it is quite impossible to identify the interactions of socio-technical. This report
signifies that road and highways developers can also use a game-theoretical approach which
states that infrastructure is the pillars of modern societies as it provides them shelter, mobility
and delivery of essential utilities to local communities.
Article 6
Pettigrew, D., & Scholey, C. (2015). Focusing business assets: strategic marketing, the
balanced scorecard, and better time management practices. CMA Management. Hamilton:
Society of Management Accountants of Canada.
This literature explains that the use of balanced scorecards helps in industries which ensure
the performance of asset management strategies. It refers that managers nowadays are
looking for an accessible approach in order to study individuals' behaviour in order to meet
their requirements or demands by understanding and satisfy the same in the best possible
manner. it also provides an effective strategic direction which allows project developers of
road and highways so as to ensure the quality of raw materials used it in. The article also
suggests that due to global competition the prime objective of asset management is to
optimize plant availability at minimal costs; in this relation, it is essential to apply some
minimal approaches in order to sustain quality. In the process of asset life cycle management,
it is mandatory to consider customers’ requirements and environmental concerns. It has
acknowledged that the production department needs to be actively involved in the planning of
asset management strategy and signifies human behavior in the prevention of failures.
Although, leadership and management skills became important in maintenance.
Article 7
Adams, D. (2012). Property Asset Management (Third edition). Housing Studies. Taylor &
Francis Group.
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In order to truly prevent the failures occur in asset management strategy, each activity or task
takes place as a priority from potential failures. These elements encompass with new
determination and eradication of underlying conditions, human errors, contributing aspects
and violations of the integrity that leads towards preventing potentials failures and
accomplish all tasks or activities in a required time period. In addition to this, in the asset
management process these failures occur due to ignorance of top and bottom level
management due to which effectiveness of project activities get reduced. With an aim to
prevent such failures, project managers can also acquire a progression model which supports
to address the factors which influence decisions while designing, manufacturing, operation,
installation, management and maintenance of equipment. The progression is also happening
in seconds as well where distraction causes an instantaneous error event stress tool to reduce
the chances of failure.
Article 8
Plati, C., Loizos, A., & Gkyrtis, K. (2019). Assessment of Modern Roadways Using Non-
destructive Geophysical Surveying Techniques. Surveys in Geophysics. Dordrecht: Springer
Nature B.V.
This article is going to include various tools, techniques and innovation used in the
development of modern road and highways. In this global environment, transportation
evolution plays a vital role in the growth and success of an economy as it attracts tourists
across the world. In this relation, the government of the nation is intending to acquire various
channels or processes which help in improving their infrastructure and provide the right
pathway to people. Furthermore, most of the private investors are also ready to help and
invest in the construction industry but for this purpose, them also demands of certain shares
in profits. An integrated approach or framework can be adopted in order to ensure the
systematic planning of roads and highways development.
Article 9
Anonymous. (2014). The strategic role of the engineer in asset management - linking life
cycle infrastructure asset management to the financial asset register. Civil Engineering :
Magazine of the South African Institution of Civil Engineering, 22(9), 61–62.
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The core concept of assets management system requires certain specific models, such as –
conceptual model, physical model and logical model. In which, the conceptual model
oriented towards human resources and entails specific objects and practices that are relevant
to the problem domain. This model also addresses the significance of objects, gathers
information and describes associations among components. On the other hand, the logical
model depicted in lists and diagrams which represent reality; the model also includes the
attributes, attributes and variations between components involves in the assets management
process. At last, the physical model draws the actual execution of digital applications or next-
generation information of objects. It defines a database as well as addresses the information
required in the asset management process; the physical model assists in attaining access of
data across the industry and data integration as well.
In addition to this, having a strategic vision in asset management process would be also
helpful for managers; the vision acts as an umbrella in which employees can align the
operational aspects of data collection, policies, goals and budgets with an aim to utilize the
latest management tools or techniques. In Canada, public and private infrastructure
development industries use these techniques which prudently dedicate sources so as to ensure
systematic operation, repair and maintenance of infrastructure assets. All this is done for
public benefits and welfare.
Article 10
Hao, T, Rogers, C.D.F, Metje, N, Chapman, D.N, Muggleton, J.M, Foo, K.Y, Wang, P,
Pennock, S.R, Atkins, P.R, Swingler, S.G. and Parker, J 2012. Condition assessment of the
buried utility service infrastructure. Tunnelling and Underground Space Technology, 28,
pp.331-344.
This article is going to explore the concept of buried utilities underneath the ground so as to
reduces the problems and accidents occur at roads; it will really helpful for society in terms of
saving lives of people at large extent. This report entails that utensils or sources have short
life period and this is a major problem for society cause of certain failures. Henceforth, the
report is focusing on applying innovations and technologies with an aim to improve the
current position of highways and roads by making them more safe and secure. There would
be several advantages of executing these utensils but it also accrues out certain constraints
such as – lack of comprehensiveness and inappropriate maps.
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Article 11
Attahiru, Y.B, Aziz, M.M.A, Kassim, K.A, Shahid, S, Bakar, W.A.W.A, NSashruddin, T.F,
Rahman, F.A. and Ahamed, M.I 2019. A review on green economy and development of
green roads and highways using carbon neutral materials. Renewable and Sustainable Energy
Reviews, 101, pp.600-613.
This paper is highlighting the concept of making green highways and roads in order to
prevent the world from environmental issues, likewise – carbon dioxide and greenhouse
effects. It would be also supportive of eradicating the emission-free from fossil fuels. In this
relation, the Australian government is focusing on developing the notion of a green economy
which explores the strikes green revolution and empowerment of the environment. It has
evaluated that ecological processes or practices should be acquired so as to build green roads
as it helps in fascinating temperature and fuel comes from vehicles. Problems which are
associated while developing green roads related to a substructure, landscape, topography,
rainfall, geology etc. Hence, the prime objective of this study is to reduce global challenges
while developing greenhouses and formulate strategies to reduce the potential impact of the
greenhouse. It suggested that project managers can also acquire the concept of recycling.
Article 12
Park, S, Park, S.I. and Lee, S.H 2016, Strategy on sustainable infrastructure asset
management: Focus on Korea׳ s future policy directivity, Renewable and Sustainable Energy
Reviews, 62, pp.710-722.
This research paper analyses the strategy at the time of sustainable infrastructure asset
management by considering the future policy of Korea. It has been overviewed that
management of infrastructure development in Korea has restricted manual post-maintenance
activities. Thus, there has been founded optimal economic and managerial approaches
likewise – reducing total costs involved in asset management in perspective of the life cycle.
Furthermore, the National Asset assessment commitment has decided to improvise the
performance measurements of public institutes in this relation they are focusing on increasing
transparency of government accounting and develop an understanding of the significance of
asset management in infrastructure. Along with this, the government authorities are facing the
problem of lack of foundation for the operation of asset management and evolution of general
manuals. Therefore, it is required to prepare an effective foundation which can manage the
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national demand for managing the performance of road infrastructure development by
reducing deterioration of facilities and financial pressure.
Conclusion
After reviewing the articles and literature it has analysed that asset management is a critical
task for every industry as it allows managers' to accomplish their working activities or tasks
in the required manner. All these articles provide an in-depth understanding of the strategies
used in the asset management process at the time of infrastructure development in different
nations. The articles briefly define the process of asset management and its role in the
development of roads and highways.
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References
 Adams, D. (2012). Property Asset Management (Third edition). Housing Studies.
Taylor & Francis Group.
 Anonymous. (2014). The strategic role of the engineer in asset management - linking
life cycle infrastructure asset management to the financial asset register. Civil
Engineering : Magazine of the South African Institution of Civil Engineering, 22(9),
61–62.
 Ashuri, B., Lu, J., & Kashani, H. (2011). A real options framework to evaluate
investments in toll road projects delivered under the two-phase development strategy.
Built Environment Project and Asset Management, 1(1), 14–31.
 Attahiru, Y.B, Aziz, M.M.A, Kassim, K.A, Shahid, S, Bakar, W.A.W.A,
NSashruddin, T.F, Rahman, F.A. and Ahamed, M.I 2019. A review on green
economy and development of green roads and highways using carbon neutral
materials. Renewable and Sustainable Energy Reviews, 101, pp.600-613.
 Hao, T, Rogers, C.D.F, Metje, N, Chapman, D.N, Muggleton, J.M, Foo, K.Y, Wang,
P, Pennock, S.R, Atkins, P.R, Swingler, S.G. and Parker, J 2012. Condition
assessment of the buried utility service infrastructure. Tunnelling and Underground
Space Technology, 28, pp.331-344.
 Osman, H., & Nikbakht, M. (2014). A game-theoretic model for roadway
performance management. Built Environment Project and Asset Management, 4(1),
40–54.
 Park, S, Park, S.I. and Lee, S.H 2016, Strategy on sustainable infrastructure asset
management: Focus on Korea׳ s future policy directivity, Renewable and Sustainable
Energy Reviews, 62, pp.710-722.
 Pettigrew, D., & Scholey, C. (2015). Focusing business assets: strategic marketing,
the balanced scorecard, and better time management practices. CMA Management.
Hamilton: Society of Management Accountants of Canada.
 Plati, C., Loizos, A., & Gkyrtis, K. (2019). Assessment of Modern Roadways Using
Non-destructive Geophysical Surveying Techniques. Surveys in Geophysics.
Dordrecht: Springer Nature B.V.
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 Ruitenburg, R., Braaksma, A., & Design, P. (2017). Developing Asset Life Cycle
Management capabilities through the implementation of Asset Life Cycle Plans – an
Action Research project. 24th International Annual EurOMA Conference 2017, (24).
 Sitzabee, W., & Harnly, M. (2013). A Strategic Assessment of Infrastructure Asset-
Management Modeling. Air & Space Power Journal, 27(6), 45–68.
 Snider, B. (2016). Failure prevention--The ultimate asset management strategy.
Hydrocarbon Processing, 47–52.
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