New Paradigm for Deferred Maintenance Budget Allocation

SooJin Yoon, Purdue University

Abstract

Physical asset management indicates a tangible system that monitors and maintains using systematic process of developing, operating, maintaining, upgrading, and disposing of assets cost-effectively. One of the major issues with effective asset management is a deferred maintenance (DeM). This research proposes the total packaged DeM prioritization and optimal DeM budget allocation model to improve the systematic process of the facility management. The proposed framework is composed to three modules. Module 1 is the DeM budget funding framework that provides DeM Knock-in-and-out option model to improve the relationship between university administrators and units found in current budget models which can solve the issue address the funding improvement and budget model improvement. Module 2 is DeM total-package prioritization that provides an innovative facility management strategy. Fault tree analysis and Bayesian Network analysis are applied to prioritize the component, subsystem, and system levels. Module 3 is to a provide optimal budget allocation algorithm based on the Module 2. As a part of the research, a case study was conducted to validate the proposed framework with 25 buildings. From the case study, the integrated decision-making framework of the proposed DeM model helps the facility manager at the university diagnose facility health and prescribe a systematic approach to ensure that the facility’s full life is utilized efficiently. Therefore, the proposed research establishes an innovative decision-making approach that allows administrators of higher education institution including facility managers to implement effective DeM strategies systematically and allocate DeM costs appropriately to establish long-term budgetary goals, which would lead to the enhancement of the asset value of the higher education institutions. Furthermore, the proposed DeM budget allocation model can be applied in other areas such as private companies and public institutions that have campus-sized facilities to manage their DeM backlogs.

Degree

Ph.D.

Advisors

Hastak, Purdue University.

Subject Area

Civil engineering

COinS