Current Status, Experiences and Perspectives of

Asset Management in South Korea

-By focusing PMS software implementation issues-

2010. 5. 31

Daeseok HAN
Dept. of Urban Management, Graduate School of Engineering,
Kyoto University, Japan
*Contact : han.d@at8.ecs.kyoto-u.ac.jp
General description

If someone ask the Korean PMS ?

We have….

but it is still primary stage

But, we have recognized its importance

So, now we are trying to enhance Korean PMS

Economic Growth and Road Infra.
Population will be Economic growth will be
increased continued

Demand of Infrastructure
Time to construct
will be increased (developing country)

Capacity of Infrastructure
reaches maximum level Time to maintain
(developed country)
Construction demands Maintenance demands
becomes decreased becomes increased

Maintenance budget > “How to effectively manage huge

Construction budget infrastructures by this small budget ?”
But, not enough!!

Vietnam has enough potential to be developed country !

Vietnam would go through similar procedures
Economic Growth and Road Infra.
Population Economic (No. of Vehicle)
Population increase rate No. of vehicle Increase rate(%)
60,000 2.0 18000 50

1.8 16000 45

No. of vehicles(thousand)
50,000 40
1.6 14000
Population(thousand)

Increase rate (%)

35

Increase rate(%)
1.4 12000
40,000
30
1.2 10000
25
30,000 1.0 8000
20
0.8 6000
20,000 15
0.6 4000 10
0.4
10,000 2000 5
0.2
0 0
0 0.0

1975
1976

1978
1979
1980
1981
1982

1987
1988
1989
1990
1991
1992
1993

1997
1998
1999
2000
2001
2002
2003

2005
1977

1983
1984
1985
1986

1994
1995
1996

2004
1975
1976

1981

1983

1986

1988
1989

1994

1997

1999

2001
2002

2004
1977
1978
1979
1980

1982

1984
1985

1987

1990
1991
1992
1993

1995
1996

1998

2000

2003

2005
Year
Year

Source: Korea Statistical Information System Source: Korea Statistical Information System

No construction!
Road length Road maintenance budget

Source: Do et al., 2008 Source: Do et al., 2008

 Problem on Maintenance Budget

Enough budget ?? Reasonable budget !!

Trend of road maintenance budget
Why ?
Not by the result of AMS
But by the political reasons

Benefit of the PMS

 Government can save budget by optimized strategy
 Road agency can estimate and request “Reasonable budget”
based on the objective analysis result (Not the enough budget)
 Importance of PMS in Korea
Scale of pavement management market in Korea
 Road asset occupies 54.72% in NPV from total national
infrastructure asset value in Korea (Ahn and Kim, 2006)
 Road maintenance budget occupies more than 70 percents
 As time goes by, Vietnam may have to allocate much budget for
road maintenance with road construction

Asset Value Transportation related budget allocation

200
180
160
140
54.72%
Total value (trillion won)

120
100
80
60
40
20
0

Source: Do, 2009 Source: Do, 2009

 PMS history in Korea Today’s focus

Korea has PMSs for Expressway, National highway, Airport

pavement, but most local governments do not have one’s PMS
(except for Seoul, and icheon city)

Major history of the PMS in national highway (Do, 2009 (revised)):

 1986 Start of inspection for national highway
 1987 Intro. of inspection technology and tool from France
 1997 Intro. of high-tech inspection equipment (ARAN)
Application of super-pavement
(Unofficially
)
 2001 Upgrading of economic analysis process (by HDM-4, RealCost)
 2008 Developing advanced inspection car and database
 2010 Start of a R&D project for developing customized PMS software
(in planning stage)
Problems of Korean PMS are…
Subjective budget allocation
 Disturbed cost-effective budget allocation and use

Quality of inspection data

 Disturbed reliable PMS plan, operation, and analysis

Technical dependence
 Disturbed flexible application and domestication of PMS
Neglecting importance of the AMS (lack of experts)
 Disturbed making sustainable PMS plan in future
Lack of customized database
 Disturbed systematic data accumulation and effective use

Lack of customized PMS analysis software

 Disturbed objective decision making for road investment
 Resulted dependence on the expert system under field experience
Efforts for Korean PMS (Equipment)
Developing advanced inspection equipment
Efforts for Korean PMS (Database)
Developing Integrated database
A GIS-based integrated database has been adopted & applied to
reduce overlapped budget allocation as an available alternative

Although several sub-systems have incorporated by GIS capabilities,

the fully integrated GIS D/B functions have not yet been implemented
Efforts for Korean PMS (Software)
Introduction of ready-made PMS software (HDM-4)
 Not for estimating total budget but for priority of maintenance
 Application for post-evaluation of a super-pave project

Limitations of HDM-4
 Too much data requirement for domestication and calibration
 Korean PMS conditions were not matched with HDM-4 requirement
 Many systematic errors and limitations as the PMS model
 Reliability of estimation result
 Moreover, black box, technical dependence, high price, etc.

A HDM-4 expert say ”Please don’t use HDM-4”

Finally,
Let’s develop customized Korean PMS !!!
Lessons from Korean PMS
Introduction timing of PMS
PMS must be introduced from the initial stage

Importance of PMS
Road agency, also government must understand importance of AMS

Budget allocation
Budget allocation must be reasonable under objective DSS

Importance of data inspection

Data quality is most important factor for establishing sustainable PMS

PMS experts
Government must invest budget for the bringing up of experts of PMS

PMS analysis software

Government must invest money and time for developing customized PMS
analysis software that helps all of decisions for road investment
Roles of the PMS Software

“Past, Present and Future”

“Database, Management, and PMS analysis”

Database  Pavement data inventory

 Annual (short-term) M,R&R plan

Management  Operation of PMS activities
 Annual PMS report

 Pavement deterioration forecasting

PMS analysis  Life Cycle Cost Analysis(LCCA)
 Accounting for budget optimization
About the PMS Software Implementation

Three options for PMS software implementation (by Uddin, 1992)

1. Ready-made PMS software

2. Modification of ready-made PMS software
3. Development of customized PMS software
Evaluation index Ready- Modifying- Customized
made readymade
Application Cost (Budget + time) Ο/Χ Χ/Δ Χ
Initial application (effort to develop) Ο Δ Χ
Operation Matching current condition (data) Χ Δ/Ο Ο
Satisfying current objective (result) Χ Δ/Ο Ο
Preparation Extending future demand (function) Χ Δ/Ο Ο
Copyright Χ Χ/Δ Ο

Note : Ο = Good, Δ = Reasonable, Χ = Bad

The Best Strategy for PMS Software

What is the best implementation strategy ?

By order of
the “ready-made, modifying ready-made, and customized software” ??

 VERY difficult to abandon (or change) one’s PMS structures

By development of
the “customized software” at the outset of PMS implementation ??

 ALSO difficult due to the time, money, and technical problems

The “Hybrid System” can be the best solution,

regardless of any PMS situation
Objective of the VHPMS

‘International standard of
pavement management system’

Every country
Every condition
Every objective
 Functions of the VHPMS

Basic functions +α
Function / Core level Semi-core Recommended Advanced level Unique level
level level level (Extendable by
users)
Accounting Short term Mid-long term Optimization-I Optimization-II Updating their
accounting accounting (Network-based) (Section-based) original account
system
Economic Agency cost Agency cost & Agency cost & Adding social, and Workzone model,
Analysis User cost User cost & environmental cost Add the other
Economic expenditures
indices
Forecasting Deterministic-I Deterministic- Stochastic – I Stochastic – II Stochastic – III
Simplified II Markov Local Mixture MCMC, Hidden
regression Multiple exponential hazard model Markov model
regression hazard model
Management Work demand Work design Budget Optimization Web-based
/ Work effect estimation (Short term) system

Database Various Data Support for Visualization Including the

Searching Exportation external models (with GIS) other road
facilities
System Architecture of the VHPMS

Database part Life cycle cost part

Management part

Accounting part

Forecasting part

Very Complex… So, customization strategy should be highlighted

 Customization Philosophy

One find other’s size VS. One find one’s size

Member Member Member Developer
A B C (VHPMS)
io n Ge
l vers ner
al
r a ve r
G ene s io
n

Developer Member Member Member

(VHPMS) A B C

VHPMS VHPMS VHPMS VHPMS VHPMS VHPMS

(A type) (B type) (C type) (A type) (B type) (C type)

Customized by developer Customized by each member

 It makes much standardized customization  Every member can make correct adoption
 But, it makes incorrect adoption  They can modify their model at once
 Every member must rely on developer  But, it takes time to understand and
 Every member must wait for their order customize the VHPMS
Compatibility with existing systems

“Nobody can easily discard current

system”
The biggest obstacle for vivid implementation
At the first stage, the VHPMS would be consistence with each
user’s existing system

Strategy for compatibility

Supporting current PMS software: Database system can
support external models which are now applying for their PMS (e.g.
HDM)
Supporting required functions: All functions are designed as an
independence module so that the function can be used for existing
system
 System Operation and Improvement

Can you help me?? I can help you!! Let’ go together !!!
 If one member develops new function, the others can benchmark
it.
 Developer have to consider the function to the general version
KOREA KOREA New Member
fun cept)

VHPMS-K1.1 VHPMS-K1.1 VHPMS-1.1

n

Ign hing
ctio
Ac

No
ore ) ha
rk(

(u s

Developer Developer
ma
the

e le
nch

VHPMS VHPMS
ss
ss

pp
Be

ver.1.1
To

ver.1.00
en

JAPAN VIETNAM JAPAN VIETNAM

VHPMS-J1.0 VHPMS-V1.0 VHPMS-J1.1 VHPMS-V1.0

Activities to facilitate implementation

How to operate the VHPMS after distribution (Plan)

 Opening an official website
 Opening training course
 Editing manual series
 Opening periodical symposium about case studies of members
 Technical support (could be business model)

Arousing joint ownership among the users

will be the most important factor that makes
an international standard of the PMS software
Conclusion

Until Now,
Korea has undergone many problems due to late
and poor introduction of the AMS
Also,
The framework of the PMS is very difficult to change
once it established
You have to
know,
If you don’t prepare sustainable PMS from the outset,
you will undergo similar situation with Korea

By the
experience,
The key point is developing customized PMS software

“How about the hybrid system for your PMS ?”