Dynamic project portfolio selection in infrastructure sector

Tiina Koppinen, Tony Rosqvist

    Research output: Chapter in Book/Report/Conference proceedingChapter or book articleProfessional

    4 Citations (Scopus)

    Abstract

    Infrastructure networks are vital to the national economy. Their Asset Management (AM) should result in long-term economic efficiency and optimal service levels. For AM to live up to the expectations of infrastructure sector, it has to meet four key challenges: 1) alignment of strategy and operations with stakeholder values and objectives; 2) balancing of reliability, service-level, safety, and financial considerations; 3) ensuring optimal packaging and timing of works, and adequate competition; and 4) promoting market development. Through educated decision-making, asset managers can actively develop their networks and use their limited budgets in a way that long-term goals and short-term budgets are met. In order to assist asset managers, a simplified Project Portfolio Selection Method (PPSM) is developed. The method applies the analytical hierarchy process (AHP) and real option ideology. PPSM aims at assisting infrastructure managers in optimising the life cycle profiles of their assets through selection of an optimal maintenance, repair and rehabilitation project portfolio. The developed method fills the void between strategic and operative decision-making methods facilitating management of multiple investments at the local network management level. Through the systematic, easy-to-apply project selection method, the asset manager can easily determine the optimal project portfolio and demonstrate the grounds to others.
    Original languageEnglish
    Title of host publicationDefinitions, Concepts and Scope of Engineering Asset Management
    EditorsJoe E. Amadi-Echendu, Kerry Brown, Roger Willett, Joseph Mathew
    PublisherSpringer
    Pages311-326
    ISBN (Electronic)978-1-84996-178-3
    ISBN (Print)978-1-84996-177-6
    DOIs
    Publication statusPublished - 2010
    MoE publication typeD2 Article in professional manuals or guides or professional information systems or text book material

    Publication series

    SeriesEngineering Asset Management Review
    Volume1
    ISSN2190-7846

    Fingerprint

    Portfolio selection
    Project portfolio
    Managers
    Assets
    Decision making
    Service levels
    Asset management
    Repair
    Stakeholder values
    Ideology
    Real options
    Network management
    Economic efficiency
    National economy
    Rehabilitation
    Life cycle
    Analytical hierarchy process
    Project selection
    Management methods
    Alignment

    Cite this

    Koppinen, T., & Rosqvist, T. (2010). Dynamic project portfolio selection in infrastructure sector. In J. E. Amadi-Echendu, K. Brown, R. Willett, & J. Mathew (Eds.), Definitions, Concepts and Scope of Engineering Asset Management (pp. 311-326). Springer. Engineering Asset Management Review, Vol.. 1 https://doi.org/10.1007/978-1-84996-178-3_16
    Koppinen, Tiina ; Rosqvist, Tony. / Dynamic project portfolio selection in infrastructure sector. Definitions, Concepts and Scope of Engineering Asset Management. editor / Joe E. Amadi-Echendu ; Kerry Brown ; Roger Willett ; Joseph Mathew. Springer, 2010. pp. 311-326 (Engineering Asset Management Review, Vol. 1).
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    Koppinen, T & Rosqvist, T 2010, Dynamic project portfolio selection in infrastructure sector. in JE Amadi-Echendu, K Brown, R Willett & J Mathew (eds), Definitions, Concepts and Scope of Engineering Asset Management. Springer, Engineering Asset Management Review, vol. 1, pp. 311-326. https://doi.org/10.1007/978-1-84996-178-3_16

    Dynamic project portfolio selection in infrastructure sector. / Koppinen, Tiina; Rosqvist, Tony.

    Definitions, Concepts and Scope of Engineering Asset Management. ed. / Joe E. Amadi-Echendu; Kerry Brown; Roger Willett; Joseph Mathew. Springer, 2010. p. 311-326 (Engineering Asset Management Review, Vol. 1).

    Research output: Chapter in Book/Report/Conference proceedingChapter or book articleProfessional

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    AB - Infrastructure networks are vital to the national economy. Their Asset Management (AM) should result in long-term economic efficiency and optimal service levels. For AM to live up to the expectations of infrastructure sector, it has to meet four key challenges: 1) alignment of strategy and operations with stakeholder values and objectives; 2) balancing of reliability, service-level, safety, and financial considerations; 3) ensuring optimal packaging and timing of works, and adequate competition; and 4) promoting market development. Through educated decision-making, asset managers can actively develop their networks and use their limited budgets in a way that long-term goals and short-term budgets are met. In order to assist asset managers, a simplified Project Portfolio Selection Method (PPSM) is developed. The method applies the analytical hierarchy process (AHP) and real option ideology. PPSM aims at assisting infrastructure managers in optimising the life cycle profiles of their assets through selection of an optimal maintenance, repair and rehabilitation project portfolio. The developed method fills the void between strategic and operative decision-making methods facilitating management of multiple investments at the local network management level. Through the systematic, easy-to-apply project selection method, the asset manager can easily determine the optimal project portfolio and demonstrate the grounds to others.

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    Koppinen T, Rosqvist T. Dynamic project portfolio selection in infrastructure sector. In Amadi-Echendu JE, Brown K, Willett R, Mathew J, editors, Definitions, Concepts and Scope of Engineering Asset Management. Springer. 2010. p. 311-326. (Engineering Asset Management Review, Vol. 1). https://doi.org/10.1007/978-1-84996-178-3_16