Abstract
This study develops an implementation framework for asset management strategic planning of water distribution networks to meet sustainable infrastructure, socio-political, and financial targets over the life cycle of the infrastructure. The proposed framework is comprised of three decision-making layers: (1) Visions and Values, (2) Function, and (3) Performance. The asset management strategy framework is implemented and validated by demonstrating functionality and value by using data from three water utilities in Canada. The Visions and Values layer is set to meet the needs of the water utilities' stakeholders. The Function layer uses an advanced system dynamics model to simulate and forecast the system's future behavior. The Performance layer benchmarks, compares, and graphically illustrates the situation and performance of water utilities against each other regardless of their size. Benchmarking results indicate that all three water utilities can sustainably meet the strategic targets established in the Visions and Values layer of the asset management strategy over the benchmarking period. The impact of the desired cash reserve on infrastructure and financial benchmarking performance indicators is also investigated to explore the “optimal” combination of allowable fee-hike and rehabilitation rates using the contour plots developed over the benchmarking period. The results indicate that the optimal combinations of allowable fee-hike of ~8% per year and rehabilitation rate of 1.3% per year along with a 1–4% cash reserve, depends on the network condition, will allow water utilities to have sufficient funds to meet their strategic targets. The performance modeling and simulation approach presented in this study represents a powerful tool for other utilities to develop optimal strategic and operational plans for their networks and thus better service to their stakeholders.
Highlights
Asset Management is the “coordinated activity of an organization to realize value from assets” (British Standard Institution., 2014)
To simulate and benchmark the three water utilities described in section Asset Management Strategy Implementation, the system dynamics model developed by Rehan et al (2013) is further extended to achieve the stated Visions and Values of the water utility
The water network length, population, and area serviced by the utility are assumed to be constant over the benchmarking period
Summary
Asset Management is the “coordinated activity of an organization to realize value from assets” (British Standard Institution., 2014). This study develops an implementation framework for asset management strategic planning of water distribution networks by advancing Rehan et al (2013)’ SD model and implementing all water BPI’s developed by Ganjidoost et al (2018) to quantify the current and future performance of three water utilities in Southern Ontario, Canada. Water utilities seeking to meet their Visions and Values should first set strategic targets, as indicated, and adjust policy levers, as noted, to sustainably maintain these targets over the life cycle of the infrastructure This layer of decision-making is intended to meet stakeholders’ needs and comply with mandated legislation. To simulate and benchmark the three water utilities described in section Asset Management Strategy Implementation, the system dynamics model developed by Rehan et al (2013) is further extended to achieve the stated Visions and Values of the water utility. The household income is inflated over the benchmarking period with the rate of 2.4% per annum reported by the Customer Price Index (CPI) of Canada (Statistics Canada, 2014)
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