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Civil Engineering Dept.
Master Program
Infrastructure planning
and management
Lecture(4)
Instructor : Dr. Abed Al-Majed Nassar
2009-2010
Measurement of System
performance
Infrastructure performance measurement
Infrastructure performance measurement must be
multidimensional, reflecting the full range of social
objectives set for infrastructure system . The
performance of infrastructure could be measured by
effectiveness, reliability, and cost.
Measurement of System
performance
Effectiveness
Reliability
Cost
Infrastructure performance measurement
Effectiveness
Capacity and delivery of services
Quality of services delivered
The system’s compliance with regulatory
concern
The system’s broad impact on the
community
Reliability
A recognition of various uncertainties inherent in
infrastructure’s services, is the likelihood that
infrastructure effectiveness will be maintained over an
extended of time or the probability that service will be
available at least at specified levels through the design life
Cost
The costs are incurred and paid at different times and
places, by different agencies and groups(e.g., users,
neighbors, taxpayers), and in monetary and nonmonetary
terms . When the cost is acceptable and low, this gives
indication that the performance is well.
Examples of Measures of System
Reliability
Type of Indicator, Measure
Examples Measures
Deterministic
Engineering safety factors
Percentage contingency allowance
Risk class rating
Statistical, probabilistic
Confidence limit
Confidence probabilities
Risk functions
Composite(typically
deterministic indicator
of statistical variation)
Demand peak indicator
Peak-to-capacity ratio
Return frequency (flood)
Fault-tree analysis
Examples of Measures of System
Cost
Planning and design cost
Investment, replacement,
capital, or initial cost
Construction cost
Equity
Debt
Operation cost
Maintenance cost
Recurrent or O&M cost
Repair and replacement cost
Depreciation cost
Depletion cost
Timing of expenditure
Discount and interest rate
Timing and source
Exchange rate and restrictions
Sources of fund
Service life
Losses of Value of Infrastructure
Facilitates
Functional
• Due to change in demand or change in amount and
type of services requirement.
Technological
• Occurring when better approaches (e.g, better
equipment) are available to carry out the functions
of the facility.
Physical
Monetary
Casualty-related
Legal
• Due to ordinary wear and tear, corrosion from age
or use
• Due to change in the buying power of money
• Arising from fires, explosions, earthquakes, etc
• Resulting from changes in legal requirements
related to the serviceability or outputs
of
machines and structures
Cost-Effectiveness Measures for
Projects of Routine Nature
Aims of Cost-Effectiveness Measures
1.Minimize the amount of resources
required TO
• Achieve a given level of service
• Meet other requirements demanded of the particular situation
2.Maximize the level of services
Methods for comparing and
Prioritizing :Infrastructure Alternatives
1
• Simple Cost Basis
2
• Simple Cost Basis Plus Consideration of Other
Specified Engineering Factors
3
• Life-Cycle Cost Basis (usually made on a present
value basis
4
• Cost Basis Including Adjustments Made for
Additional Screening Criteria
5
6
7
8
9
• Additional Primarily Cost-Driven Methodologies for
State and Local Infrastructure Systems
• Full Financial Analyses
• Economic Analyses (or Benefit-Cost Analyses(
• Multi-Dimensional Analyses
• Special Studies
Parameters commonly used for
formulas involving an interest rate
i
• Interest rate per interest period.
n
• Number of interest period.
P
• Present sum of money.
F
• Future sum of money at the end of n period
(equivalent to P with interest rate i).
A
• Amount of each end-of-period payment or
receipt in uniform series of n period.
Sample Cash Flow Diagram
F
(F/P, i , n)
(P/F, i , n)
n
P
A A
(P/A, i , n)
(A/P, i , n)
P
A A A
F
(F/A, i , n)
(A/F, i , n)
A A
A A A
Common formulas for equivalency
Calculations
F/P
( F / P, i, n)  (1  i)
P/F
1
( P / F , i , n) 
n
(1  i)
n
Single
amount
(1  i)  1
( P / A, i, n) 
n
i(1  i)
n
P/A
i(1  i)
( A / P, i, n) 
n
(1  i)  1
n
(1  i)  1
( F / A, i, n) 
i
i
( A / F , i , n) 
n
(1  i)  1
n
A/P
Uniform
series
F/A
A/F
Examples
A project costs $40,000,000 and takes five years to construct. If all
of this money is borrowed at the beginning of construction, how
much money is owed by the sponsor when the project is ready to
operate? If the money is borrowed in five equal installments, how
much is owed? In each case, assume 7 percent interest for money
borrowed.
(a) F  P( F / P,7%,5)  40M $(1  0.07)
 56,102,069$
 (1  0.07)5  1 
  8M $
(b)( F1 / A,7%,5)  8M $
0.07


 38,005,912$
( F2 / P,7%,5)  8M $(1  0.07)5  11,220413
F=F1+F2=38,005,912+11,220,413
=49,226,325M$
5
40M$
8M$ 8M$ 8M$ 8M$ 8M$
F=??
F=??