Introduction to Multi-Objective Investment Decision-Making New York - PowerPoint PPT Presentation

TPM Workshop Introduction to Multi-Objective Investment Decision-Making New York City, New York December 3-4, 2019

Welcome and Summary of TPM Activities to Date Debra Nelson, NYMTC

Introduction and Overview

Agenda – Day 1 AM 10:00 Welcome, TPM Summary 10:20 FHWA Introduction, Overview 10:35 Overview TPM Toolbox & Guidebook, MODA 10:55 Discussion 11:20 Practice Example: DVRPC 11:45 Lunch

Agenda – Day 1 PM 1:00 Steps to Implementing MODA 2:00 Introduce Exercises 2:10 Break 2:25 Exercise 1: Determining Goals, Objectives, Measures 3:55 Discussion, Report Out 4:25 Day 1 Wrap Up

Agenda – Day 2 AM 9:00 Recap and Discussion 9:10 Exercise 2: Weighing Objectives and Measures 10:10 Discussion, Report Out 10:30 Break 10:35 Software Tour

Agenda – Day 2 AM (continued) 11:05 Exercise 3: Investment Prioritization Using MODAT 12:05 Discussion, Report Out 12:25 Workshop Wrap Up and Feedback

Why TPM? 8

TPM Elements 9

Rulemakings TPM-Related Rules Rule Effective Date Regulatory Chapter Safety Performance Measures 23 CFR 490 April 14, 2016 (PM1) (Subpart A & B) Highway Safety Improvement 23 CFR 924 April 14, 2016 Program (HSIP) Statewide and Non-Metropolitan June 27, 2016 23 CFR 450 Planning; Metropolitan Planning Highway Asset Management Plans October 2, 2017 23 CFR 515 & 667 for NHS Pavement and Bridge Condition 23 CFR 490 May 20, 2017 Measures (PM2) (Subpart A, C & D) Performance of the NHS, Freight, 23 CFR 490 May 20, 2017 and CMAQ Measures (PM3)* (Sub. A, E, F, G, H ) * Except for the GHG measure (the percent change in tailpipe CO2 emissions on the NHS compared to the 2017 level) 10

Required Plans Multimodal State/MPO Long Range Transportation Plans Plans State/MPO Transportation Improvement Programs Safety Strategic Highway Safety Plan (SHSP) Highway Safety Improvement Program (HSIP) Infrastructure Transportation Asset Management Plan (TAMP) Condition Congestion/ CMAQ Performance Plan Air Quality Freight State Freight Plan Transit Transit Safety Plan Transit Asset Management Plan 11

TPM Roles and Responsibilities • USDOT o Performance Measure Rules include: § Establish measures; identify data sources; define metrics § Report to Congress § Stewardship and oversight • States and MPOs o Establish targets o Support national goals in the planning process and consider measures and targets in long range plans and programs o Report progress to USDOT (States) 12

State DOT and MPO Roles • Identify available and needed data • Coordinate with other agencies • Establish coordinated targets • Collect and submit required data • Report progress 13

FHWA Role • FHWA is committed to your success! o Headquarters provides guidance and develops policies and tools o Divisions are responsible for program delivery o The Resource Center provides technical assistance and training 14

Overview of TPM Toolbox, Capability Maturity Model, Guidebook and MODA

TPM Toolbox Elements 16

TPM Framework 17

TPM Framework Component 4 Performance-Based Programming 18

TPM Capability Maturity Model (CMM) • Assess current state of your agency with respect to TPM • Identify logical set of improvements • Show benefit of moving to higher maturity levels • Can assess each TPM component separately 19

Assessment for Performance-Based Programming CMM Level Definition Programming decisions not links to goals or planning documents , lack 1. Initial transparency. Based on formulas, history, not based on analysis of performance. Developing performance-based programming that reflects agency goals, 2. Developing priorities, funding constraints, risk factors, and relative needs across performance areas . 3. Defined Method and processes defined and incorporating into long-range plans. Established and documented methodology and process within and across 4.Functioning performance areas to maximize achievement of multiple goals . Clear linkage between investments and expected performance outputs and outcomes. Performance-based programming applied for multiple cycles. Feedback loop 5. Sustained between monitoring and programming . Process is periodically refined. 20

Emerging Practice in Programming Projects • Allocation based on • Links planning and formulas, historical trends programming • Programming at region • Considers cross asset level, validated by DOT HQ impacts • Performance based • Flexible criteria principles, but focused on • Aligns with target-setting reporting Legacy Emerging Practice Practice 21

Challenges in Programming Across Areas • Many investment needs • Tightly constrained resources • Multiple with competing objectives that are difficult to compare o Mobility o Safety o Preservation o Environment o … 22

Multi-Objective Decision Analysis (MODA) • Structured approach for choosing between a set of alternatives considering multiple objectives • Approach for supporting TPM Framework Area 4.2 – Programming Across Program Areas • Requires quantifying one’s objectives and the value obtained with respect to each objective by each alternative under consideration • Also referred to using Multi-Criteria Decision-Making (MCDM) or other acronyms 23

Benefits of Using MODA to Prioritize • Better alignment of resource allocation decisions with agency goals and objectives o Clear definition of goals and objectives o Performance-based o Data-driven • More efficient use of scarce resources • Repeatability • Transparency 24

Considerations in Implementing MODA Scope • What types of investments will be prioritized? • How many funding periods are considered? • How will the results be used? Methodology • Generating candidate investments • Relating investment objectives to performance measures • Scaling performance measures to approximate the benefit of performing work • Weighing competing objectives Data • Need predicted performance for each measure representing the full range of objectives 25

Relevant Research NCHRP Report 806 NCHRP Report 921 (2015) (2019) • Cross-asset resource • Updated the NCHRP Report allocation approaches for 806 spreadsheet tool and asset management created a new web tool • Case studies illustrating • Spreadsheet tool and MODA applications guidance 26

Discussion

Practice Example Delaware Valley Regional Planning Commission

Lunch (75 min) 41

Steps in Implementing MODA for Investment Prioritization

Programming Across Performance Areas 1. Establish Roles 2. Clarify 3. Develop 4. Document & Responsibilities Purpose Methodology Process Identify and Clarify purpose of Develop a Document the assign internal cross performance methodology that process roles and area prioritization reflects agency responsibilities priorities and external stakeholder interests 43

Step 1 Identify and Assign Internal Roles and Responsibilities 1. Establish Roles 2. Clarify 3. Develop 4. Document & Responsibilities Purpose Methodology Process • Project curator – who will • Analysts —who will evaluate the facilitate project potential projects based on the submissions? criteria? Determination of what methodology will be used? • Criteria selection team – who will develop criteria by which • Decision maker —who will projects will be evaluated for finalize and approve the inclusion in the STIP or TIP? selection of projects? • Data reporters – who is • Liaison – who will communicate responsible for reporting data progress to agency and gather that will be used to assess feedback from those not projects? involved in process development? 44

Step 2 Clarify purpose of cross performance area prioritization 1. Establish Roles 2. Clarify 3. Develop 4. Document & Responsibilities Purpose Methodology Process High Level Goals • Transparency and Accountability • Maximize Efficiency (Funds, ROI) • Maximize Effectiveness (System Performance) • Standardize Performance Criteria • Improve Repeatability • Mitigate Risks 45

Detailing the Scope and Purpose What will be prioritized? Which modes? • Which types of investments? • What is the timeframe for analysis? • What should process yield? Prioritized list of investments? • Recommended resource allocation? • How will results be used? Initial list of investments to fund? • Approach for narrowing the candidate pool of investments? • Support setting targets? • 46

Step 3 Develop the Methodology 1. Establish Roles 2. Clarify 3. Develop 4. Document & Responsibilities Purpose Methodology Process 3. 3.1 Define goals and object ctives 3. 3.2 Select ct performance ce measures and evaluation cr criteria 3. 3.3 Assess data and analytica cal ca capabilities 3. 3.4 Prototype the approach ch 3. 3.5 Set weights on goals and object ctives 3. 3.6 Ap Apply the model 47

Step 3.1 Define Goals and Objectives What it takes 3. 3.1 De Define goals and • Review the agency’s overall goals and ob objectives objectives that support those goals • Determine which of these are relevant given the scope of the process • Attempt to resolve any gaps or overlaps between objectives 48