Dynamic project portfolio selection in infrastructure sector

Tiina Koppinen, Tony Rosqvist

Research output: Chapter in Book/Report/Conference proceedingConference article in proceedingsScientificpeer-review

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) was developed. The method applies 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 publicationProceedings of the 2nd World Congress on Engineering Asset Management and the Fourth International Conference on Condition Monitoring, WCEAM CM 2007
Place of PublicationNorthampton, UK
Pages1053-1065
ISBN (Electronic)1901892220, 9781901892222
Publication statusPublished - 2007
MoE publication typeA4 Article in a conference publication
Event2nd World Congress on Engineering Asset Management and the Fourth International Conference on Condition Monitoring, WCEAM CM 2007 - Harrogate, United Kingdom
Duration: 11 Jun 200714 Jun 2007

Conference

Conference2nd World Congress on Engineering Asset Management and the Fourth International Conference on Condition Monitoring, WCEAM CM 2007
Abbreviated titleWCEAM CM 2007
CountryUnited Kingdom
CityHarrogate
Period11/06/0714/06/07

Keywords

  • asset management
  • infrastructure management
  • project appraisal
  • uncertainty

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    Koppinen, T., & Rosqvist, T. (2007). Dynamic project portfolio selection in infrastructure sector. In Proceedings of the 2nd World Congress on Engineering Asset Management and the Fourth International Conference on Condition Monitoring, WCEAM CM 2007 (pp. 1053-1065).