Dynamic project portfolio selection in infrastructure sector

Tiina Koppinen, Tony Rosqvist

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

3 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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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