Introduction to Multi-Objective Investment Decision-Making 2019 - PowerPoint PPT Presentation

TPM Workshop Introduction to Multi-Objective Investment Decision-Making 2019 Conference on Performance and Data in Transportation Decision Making Atlanta, Georgia September 18, 2019

Workshop Overview • Introduction and Overview • Practice Example: Maryland DOT • Tradeoff Decision-Making, MODA, and MODAT • Small Group Exercise: Tradeoff Analysis Using MODAT • Break • Small Group Exercise (continued) • Workshop Wrap Up 2

Introduction and Overview

Why TPM? 4

TPM Elements 5

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) 6

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 7

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) 8

State DOT and MPO Roles • Identify available and needed data • Coordinate with other agencies • Establish coordinated targets • Collect and submit required data • Report progress 9

FHWA Roles • 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 10

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

Toolbox Elements 12

TPM Framework 13

Component 4 Performance-Based Programming 1. Strategic Direction 2. Target Setting 3. Performance-Based Planning 4. Performance-Based Programming 5. Monitoring & Assessment 6. Reporting & Communication A. Organization & Culture B. External Collaboration & Coordination C. Data Management D. Data Usability & Analysis 14 14

CMM: Capability Maturity Model Purpose • Assess current state of your agency • Identify logical set of improvements • Show benefit of moving to higher maturity levels TPM CMM • Assesses maturity on 1-5 scale • For each TPM Component 15

CMM: 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. 16

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 17

MODA Defined MODA: Multi-Objective Decision Analysis • Structured approach for choosing between a set of alternatives considering multiple objectives • 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 18

MODA Applications • MODA helps agencies prioritize projects considering objectives such as: o Mobility o Safety o System Preservation o Environment and Sustainability • Potential approach for programming across performance areas (TPM Toolbox) 19

Challenges in Applying 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 • 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 20

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 21

Using MODA to support TPM and PBPP 22

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 23

Programming Across Performance Areas 1. Establish Roles 2. Clarify 3. Develop 4. Document & Responsibilities Purpose Methodology Process 3. 3.1 Define goals and object ctives 3.2 Select 3. 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 24

Practice Example Maryland Department of Transportation

Maryland DOT MODA Practice Example • Implementing state legislation for prioritizing major expansion projects over $5 million for inclusion in Consolidated Transportation Plan (CTP) • Evaluating projects across 9 goals and 23 measures established in legislation • Conducted series of workshops to determine evaluation criteria for each measure based on available data and resources o Wherever possible utilized quantitative methods o Qualitative evaluation criteria used in some cases • Implemented resulting scoring approach in Citygate’s iOpenDecision 26

Maryland DOT Annual Process • An annual call is made for major capacity investments • State, County and Municipal governments can propose projects • Each county assigns its local priority to the nominated projects • MDOT reviews project applications and performs supplemental analysis on each project • MDOT then scores the projects and generates a prioritized list that informs CTP development 27

Goals and Weights Delphi method used to establish weights on each goal • Stakeholders vote on weights for each goal • Discuss difference of opinion • Ultimately reach consensus 28

MDOT Measures and Weights (1/2) 69% Reduce fatalities and injuries Safety & Security 31% Implement Complete Streets Increase lifespan 47% System Preservation Increase functionality 26% Increase resilience 27% Job accessibility 11% Congestion 64% Improve travel time reliability 25% Support connections between modes 53% Reduce harmful emissions Environment 27% Impact on State resources 20% Advance State environmental goals 29

MDOT Measures and Weights (2/2) Increase bike, ped, transit 49% Community Vitality 25% Enhance community access 26% Further State revitalization plan Job accessibility 41% Economic Enhance access to intermodal locations 28% 32% Economic development Job accessibility (disadvantaged pop.) 53% Equitable Access Economic development (low-income) 47% Travel time savings divided by cost 14% ROI Leverage other funding sources 64% 22% Increase transportation alternatives 100% Support local priorities Local 30

Example Goal 3 Reducing Congestion and Improving Commute Time Measure 1 • The expected change in cumulative job accessibility within an approximately 60-minute commute for highway projects or transit projects Calculation • Predicted increase in number of jobs from Multi-Modal Accessibility (MMA) Tool 31