National Academies Press: OpenBook
Page i
Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2018. Optimal Replacement Cycles of Highway Operations Equipment. Washington, DC: The National Academies Press. doi: 10.17226/25036.
×
Page R1
Page ii
Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2018. Optimal Replacement Cycles of Highway Operations Equipment. Washington, DC: The National Academies Press. doi: 10.17226/25036.
×
Page R2
Page iii
Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2018. Optimal Replacement Cycles of Highway Operations Equipment. Washington, DC: The National Academies Press. doi: 10.17226/25036.
×
Page R3
Page iv
Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2018. Optimal Replacement Cycles of Highway Operations Equipment. Washington, DC: The National Academies Press. doi: 10.17226/25036.
×
Page R4
Page v
Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2018. Optimal Replacement Cycles of Highway Operations Equipment. Washington, DC: The National Academies Press. doi: 10.17226/25036.
×
Page R5
Page vi
Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2018. Optimal Replacement Cycles of Highway Operations Equipment. Washington, DC: The National Academies Press. doi: 10.17226/25036.
×
Page R6
Page vii
Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2018. Optimal Replacement Cycles of Highway Operations Equipment. Washington, DC: The National Academies Press. doi: 10.17226/25036.
×
Page R7
Page viii
Suggested Citation:"Front Matter." National Academies of Sciences, Engineering, and Medicine. 2018. Optimal Replacement Cycles of Highway Operations Equipment. Washington, DC: The National Academies Press. doi: 10.17226/25036.
×
Page R8

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

2018 N A T I O N A L C O O P E R A T I V E H I G H W A Y R E S E A R C H P R O G R A M NCHRP RESEARCH REPORT 879 Optimal Replacement Cycles of Highway Operations Equipment Ronald Hamilton Dye ManageMent group, Inc. Bellevue, WA Subscriber Categories Maintenance and Preservation • Vehicles and Equipment Research sponsored by the American Association of State Highway and Transportation Officials in cooperation with the Federal Highway Administration

NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM Systematic, well-designed research is the most effective way to solve many problems facing highway administrators and engineers. Often, highway problems are of local interest and can best be studied by highway departments individually or in cooperation with their state universities and others. However, the accelerating growth of highway transportation results in increasingly complex problems of wide inter- est to highway authorities. These problems are best studied through a coordinated program of cooperative research. Recognizing this need, the leadership of the American Association of State Highway and Transportation Officials (AASHTO) in 1962 ini- tiated an objective national highway research program using modern scientific techniques—the National Cooperative Highway Research Program (NCHRP). NCHRP is supported on a continuing basis by funds from participating member states of AASHTO and receives the full cooperation and support of the Federal Highway Administration, United States Department of Transportation. The Transportation Research Board (TRB) of the National Academies of Sciences, Engineering, and Medicine was requested by AASHTO to administer the research program because of TRB’s recognized objectivity and understanding of modern research practices. TRB is uniquely suited for this purpose for many reasons: TRB maintains an extensive com- mittee structure from which authorities on any highway transportation subject may be drawn; TRB possesses avenues of communications and cooperation with federal, state, and local governmental agencies, univer- sities, and industry; TRB’s relationship to the National Academies is an insurance of objectivity; and TRB maintains a full-time staff of special- ists in highway transportation matters to bring the findings of research directly to those in a position to use them. The program is developed on the basis of research needs identified by chief administrators and other staff of the highway and transportation departments, by committees of AASHTO, and by the Federal Highway Administration. Topics of the highest merit are selected by the AASHTO Special Committee on Research and Innovation (R&I), and each year R&I’s recommendations are proposed to the AASHTO Board of Direc- tors and the National Academies. Research projects to address these topics are defined by NCHRP, and qualified research agencies are selected from submitted proposals. Administration and surveillance of research contracts are the responsibilities of the National Academies and TRB. The needs for highway research are many, and NCHRP can make significant contributions to solving highway transportation problems of mutual concern to many responsible groups. The program, however, is intended to complement, rather than to substitute for or duplicate, other highway research programs. Published research reports of the NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM are available from Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet by going to http://www.national-academies.org and then searching for TRB Printed in the United States of America NCHRP RESEARCH REPORT 879 Project 13-04 ISSN 2572-3766 (Print) ISSN 2572-3774 (Online) ISBN 978-0-309-39040-8 Library of Congress Control Number 2018946047 © 2018 National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA, FMCSA, FRA, FTA, Office of the Assistant Secretary for Research and Technology, PHMSA, or TDC endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The research report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the National Academies of Sciences, Engineering, and Medicine. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; or the program sponsors. The Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; and the sponsors of the National Cooperative Highway Research Program do not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the object of the report.

The National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, non- governmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Marcia McNutt is president. The National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. C. D. Mote, Jr., is president. The National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president. The three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. The National Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine. Learn more about the National Academies of Sciences, Engineering, and Medicine at www.national-academies.org. The Transportation Research Board is one of seven major programs of the National Academies of Sciences, Engineering, and Medicine. The mission of the Transportation Research Board is to increase the benefits that transportation contributes to society by providing leadership in transportation innovation and progress through research and information exchange, conducted within a setting that is objective, interdisciplinary, and multimodal. The Board’s varied committees, task forces, and panels annually engage about 7,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. Learn more about the Transportation Research Board at www.TRB.org.

C O O P E R A T I V E R E S E A R C H P R O G R A M S CRP STAFF FOR NCHRP RESEARCH REPORT 879 Christopher J. Hedges, Director, Cooperative Research Programs Lori L. Sundstrom, Deputy Director, Cooperative Research Programs Amir N. Hanna, Senior Program Officer Keyara Dorn, Program Coordinator Eileen P. Delaney, Director of Publications Natalie Barnes, Associate Director of Publications Linda A. Dziobek, Senior Editor NCHRP PROJECT 13-04 PANEL Field of Maintenance—Area of Equipment Timothy D. Cunningham, Kansas DOT, Topeka, KS (Chair) Angel M. Birriel, Florida DOT, Tallahassee, FL John J. Brewington, Jr., Brewington & Company, Mount Airy, NC Bruce D. Erickson, Oregon DOT, Albany, OR George “Dennis” Halachoff, Michigan State University, East Lansing, MI Heather A. Hamilton, Massachusetts DOT, Boston, MA Sharon E. Holmes, Centurion Consultant Group, Inc., Tallahassee, FL Jeremy M. Matsuo, California DOT, Sacramento, CA John D. Wiegmann, Booz-Allen & Hamilton, Inc., Washington, DC John Nickelson, FHWA Liaison James W. Bryant, Jr., TRB Liaison

F O R E W O R D By Amir N. Hanna Staff Officer Transportation Research Board Optimal Replacement Cycles of Highway Operations Equipment is essentially both a handbook on equipment replacement concepts and an instruction manual for making cost-effective replacement decisions. The research report presents a process for determining replacement needs for highway operations equipment, identifying candidate equipment units for replacement, and preparing an annual equipment replacement program. The products include a guide and an Excel-based replacement optimization tool to support the equipment replacement process and facilitate its implementation. The guide will help fleet managers determine optimal life cycles and implement system- atic replacement processes supported by sound data-driven analysis. In this manner, the guide should help fleet managers determine replacement needs and prepare replacement budgets to provide a highway operations program with a high-quality and dependable fleet to support the agency’s mission. The information contained in the research report should be of interest to fleet managers and state maintenance engineers and to others involved in the replacement aspects of equipment fleet assets. State highway agency equipment fleet assets are vital to the delivery of agency programs, projects, and services. These fleets represent a significant capital investment and require recurring maintenance, operational expenditures, and timely replacement to achieve the desired level of performance, reliability, and economy. A variety of practices have been used by highway agencies for deciding on the replacement cycles of highway operations equipment. However, there is no widely accepted process on which to base decisions. Therefore, there was a need to identify current practices, review relevant information, and develop rational processes to provide a realistic means for determining optimal replacement cycles. There was also need to prepare a guide for optimal replacement cycles to facilitate use of these processes. In this manner, highway equipment managers and administrators can better deal with the task of equipment replacement. Under NCHRP Project 13-04, “Guide for Optimal Replacement Cycles of Highway Operations Equipment,” Dye Management Group, Inc. worked with the objective of developing a guide for optimal replacement cycles of highway operations equipment that includes processes and tools for consideration in making decisions regarding the optimal replacement cycles of on- and off-road highway operations equipment used by state high- way agencies. To accomplish this objective, the researchers reviewed literature pertaining to equipment replacement methodologies particularly related to highway operations equip- ment replacement, identified the factors relevant for determining optimal replacement cycles, and presented approaches and processes involved in equipment replacement deci- sions. The researchers then developed a systematic process that uses life cycle cost analysis

for determining replacement needs, identifying candidate equipment units for replacement, and preparing an annual equipment replacement program. Finally, the researchers prepared a guide document (included as Part II of the research report) to facilitate use of the developed replacement process together with an Excel-based optimization tool for performing life cycle cost analysis in support of the replacement process and a user manual (Part III) that provides step-by-step instructions for its use. The optimization tool is available for down- load from TRB’s website at www.trb.org by searching on NCHRP Research Report 879.

C O N T E N T S P A R T I Research Overview 3 Summary 8 Chapter 1 Introduction 8 1.1 Background 8 1.2 Project Objective 8 1.3 Research Approach 8 1.4 Organization of the Report 10 Chapter 2 Research Approach and Findings 10 2.1 Literature Search 10 2.2 Data Collection and Analysis 11 2.3 Prevailing Practices 14 Chapter 3 Project Results 14 3.1 Equipment Classification Scheme 15 3.2 Equipment Replacement Factors 29 3.3 Life Cycle Cost Analysis 32 3.4 Replacement Processes 32 3.5 Optimization Tool 38 Chapter 4 Summary and Suggested Research 38 4.1 Summary of Findings 38 4.2 Suggested Research 39 4.3 Need for System Training and Ongoing Support 39 4.4 Need for Trained Dedicated Staff 40 References 41 Appendix A Default Depreciation Tables 44 Appendix B Equipment Replacement Process P A R T I I Guide for Optimal Replacement Cycles of Highway Operations Equipment 49 Chapter 1 Introduction and Purpose 49 1.1 Importance of Fleet Planning and Replacement 49 1.2 Benefits of an Effective Equipment Replacement Program 51 Chapter 2 How to Use This Guide 52 Chapter 3 Life Cycle Cost Analysis 53 3.1 Class-Level LCCA for Determining Optimal Life Cycles 54 3.2 Unit-Level LCCA 55 3.3 Using LCCA in Replacement Decisions

57 Chapter 4 Equipment Classification Structure 59 Chapter 5 Equipment Replacement Factors 59 5.1 Age 59 5.2 Utilization 59 5.3 Depreciation 60 5.4 Maintenance and Repair Cost 63 5.5 Fuel Cost 63 5.6 Downtime Cost 64 5.7 Physical Condition and Mission Criticality 67 5.8 Overhead Cost 69 5.9 Obsolescence 70 5.10 Replacement Cost 71 Chapter 6 Equipment Replacement Processes 71 6.1 Organizational Considerations 72 6.2 Overview of Replacement Processes 74 Chapter 7 Case Example Illustrating Use of the Optimization Tool and Replacement Processes 84 Glossary P A R T I I I Replacement Optimization Analysis Tool User Manual 87 Chapter 1 Introduction 87 1.1 Background 87 1.2 About This User Manual 87 1.3 Overview of the Optimization Analysis Tool 88 Chapter 2 Tool Installation 91 Chapter 3 Tool Setup and Configuration 91 3.1 Tool Setup 91 3.2 Tool Configuration 95 Chapter 4 Importing Agency Equipment Data into the Tool 95 4.1 Quick Tips 95 4.2 Extracting Data from Agency Systems 95 4.3 Uploading Data to the Tool 98 Chapter 5 Performing Life Cycle Cost Analysis 98 5.1 Class-Level LCCA 100 5.2 Unit-Level LCCA 104 Chapter 6 Equipment Replacement Processes 104 6.1 Replacement Process 110 6.2 Saving Analysis Results Note: Photographs, figures, and tables in this report may have been converted from color to grayscale for printing. The electronic version of the report (posted on the web at www.trb.org) retains the color versions.

Next: Part I - Research Overview »
Optimal Replacement Cycles of Highway Operations Equipment Get This Book
×
MyNAP members save 10% online.
Login or Register to save!
Download Free PDF

TRB's National Cooperative Highway Research Program (NCHRP) Research Report 879: Optimal Replacement Cycles of Highway Operations Equipment acts as a handbook on equipment replacement concepts and an instruction manual for making cost-effective replacement decisions. The research report presents a process for determining replacement needs for highway operations equipment, identifying candidate equipment units for replacement, and preparing an annual equipment replacement program. The products include a guidance document and an Excel-based replacement optimization tool to support the equipment replacement process and facilitate its implementation.

Disclaimer - This software is offered as is, without warranty or promise of support of any kind either expressed or implied. Under no circumstance will the National Academy of Sciences, Engineering, and Medicine or the Transportation Research Board (collectively "TRB") be liable for any loss or damage caused by the installation or operation of this product. TRB makes no representation or warranty of any kind, expressed or implied, in fact or in law, including without limitation, the warranty of merchantability or the warranty of fitness for a particular purpose, and shall not in any case be liable for any consequential or special damages.

  1. ×

    Welcome to OpenBook!

    You're looking at OpenBook, NAP.edu's online reading room since 1999. Based on feedback from you, our users, we've made some improvements that make it easier than ever to read thousands of publications on our website.

    Do you want to take a quick tour of the OpenBook's features?

    No Thanks Take a Tour »
  2. ×

    Show this book's table of contents, where you can jump to any chapter by name.

    « Back Next »
  3. ×

    ...or use these buttons to go back to the previous chapter or skip to the next one.

    « Back Next »
  4. ×

    Jump up to the previous page or down to the next one. Also, you can type in a page number and press Enter to go directly to that page in the book.

    « Back Next »
  5. ×

    To search the entire text of this book, type in your search term here and press Enter.

    « Back Next »
  6. ×

    Share a link to this book page on your preferred social network or via email.

    « Back Next »
  7. ×

    View our suggested citation for this chapter.

    « Back Next »
  8. ×

    Ready to take your reading offline? Click here to buy this book in print or download it as a free PDF, if available.

    « Back Next »
Stay Connected!