Successful Research Projects Programming, Administrating, Implementation, and Performance Measurements

Transcription

1 Successful Research Projects Programming, Administrating, Implementation, and Performance Measurements Tommy Nantung INDOT Research and Development Division AASHTO RAC Annual Meeting July 24-27, 2017 Louisville, Kentucky

2 Topics for Discussions How to define a successful research project? Is implementation of the research project the end objective? How to successfully implement a research project? Can we measure the success?

3 INDOT/JTRP Research Program Three primary responsibilities: Conduct, oversee, implement and partner in effective research that benefits our customers (currently 92 active research projects and 185 implementation projects, monitored through SmartSheet). Conduct and oversee specialized testing programs for INDOT (e.g. Skid Accident Reduction Program, Deflection Program, Accelerated Testing Program). Assist in technology development, identification and transfer (emerging technology with a 10-year future perspective).

4 Responsibility of Research Manager Formulate research needs for the Department. Set-up budgets for research and implementation programs Administer on-going research projects. Plan for implementation for the finished research projects.

5 Responsibility in Pave, Mat, and Const. As a vice chair of the pavement design committee As a subject matter expert Accommodate all the research needs Conduct training and workshops for the Department Write policies and specifications from research projects Monitor research projects implementations in the Department

6 Case Study #1 Reclaimed Asphalt Pavement (RAP) The issue: Limited quantity to be re-used in the new asphalt pavement. Objective of the study: To increase the use of RAP in the new asphalt pavement from 15% to 25% to 40%. Final decision: To implement the research results with the support from INDOT and the construction industry

7 Case Study Challenges in implementation Specification has to be strong enough to get the desired properties. Coordination with the Pavement, Construction, and Specification committees and also the paving industry. Advantage Very strong support from both internal INDOT and the paving industry.

8 RAP Benefit/Cost Ratio Quantifiable savings Projects selected where costs and benefits can be reasonably quantified Individual projects selected represent different research areas Analysis based on Engineering economic theory Methodology 3% inflation and 5% discount rates used 8

9 Calculation of Benefits

10 Pavement B/C Example Cost of research (Present Value) = $88,942 Yearly use of Reclaimed Asphalt = 3.5 Million Tons Savings = $0.13/ton/1% re-use (based on contract price) Usage for Asphalt base = 20% Savings per year (Annual) = $9.1M 20 ( ) 1 P = $ 9.1M = $9.1M = $113, 4M ( ) B/C = $113.4M/88,942 = 1,275 : 1

11 Benefit/Cost Analysis Summary In 2016 show benefit-cost (based on projects, ratios ranging from as high as 220 to 3 to 1. Previous B/C in 1999 and 2001 yielded ratios of 35 to 1 and 53 to 1, respectively. The B/C is based on either a direct replacement cost that was developed or costs and benefits that are expected during the life of a material, component, or system. 11

12 Other Benefits Improved specifications and testing procedures Better methods resulting in improved material performance Cost-effective policy and procedures Safer highways and work zones New technologies and processes that improve productivity Environmentally-friendly solutions to Indiana s waste problems 12

13 Case Study #2 High Performance Concrete Pavement The issue: Shortened concrete pavement joint spacing reduce the pavement thickness. Objective of the study: To reduce the pavement thickness at least 1 inch. Final decision: To implement the research results with the support from INDOT and the construction industry

14 Case Study Challenges in implementation Economic analysis has to be done by the industry. Coordination with the Pavement, Construction, and Specification committees and also the paving industry. Advantage Very strong support from both internal INDOT and the paving industry

15 Modified Rates-of-Return (MIRR) Spreadsheet Program created by INDOT Central Office (no hand calculations) Calculate the value of return on investment in research and development. Investment are calculated by the schedule and amount of free cash returned to investor. Costs to conduct R&D are all inclusive and comprise direct expenditures as well as indirect costs.

16 Modified Rates-of-Return (MIRR) Benefits can inure to INDOT in the form of: Improved business practices Reduce labor, provide savings in costs of material or other supplies and expenses, or reduce the time to develop and construct a project. Other "soft" benefits can be realized by reducing INDOT's exposure to potential liabilities, improving safety, or complying with new laws and regulations. Care must be exercised when attempting to place a value on these soft benefits.

17 Modified Rates-of-Return (MIRR) Methodology Evaluation period is to begin at the start of the project and extend 10 years from the date of the findings are implemented INDOT s Hurdle Rate represents the risk premium it assigns to capital investments The MIRR represents the internal rate of return for a series of periodic cash flows, considering The cost of funds used to invest in the project The interest which could be earned on re-investment of free cash generated Viable investment is if the MIRR exceeds the Hurdle Rate (10%)

18 MIRR Inputs

19 MIRR Inputs

20 MIRR Summary

21 New Way to Show Benefits Demonstrating implementation & return on investment is good, but demonstrating IMPACT is even more important IMPACT can be measured in multiple different ways Having a diverse portfolio of IMPACT messages is important It is important to have a variety of traditional and nontraditional media to communicate IMPACT

22 Measuring IMPACT One size does not fit all Metrics include: Mapping into Executive Staff priorities Saving Dollars Prioritizing Capital Program Safety Outcome Assessment Extending Infrastructure Life Leveraging University Resources Environmental impact National Recognition of Impact

23 Communicating and Dissemination Technical Reports Electronic repository (e Pubs) Print on Demand e Books Posters Pocket Portfolios Electronic Media: Website, Twitter and Flickr, Newsletters Video Abstracts Conferences, Presentations and Workshops

24 Communicating and Dissemination

25 Governor s Award

26 Conclusions Message is very important Showcase past efforts Implement new communication initiatives to support engagement Implement series of case studies illustrating blended communications tools Maintain dialog