Baseline Replacement Cost

As one can imagine, it’s very difficult to forecast asset management budgets for thousands of underground pipes on a yearly basis. InfoMaster’s Baseline Replacement Cost tool simplifies this forecast to give users an easy to use tool to get an estimate of costs over a period of time. This blog will shed some light on the inputs and outputs in InfoMaster’s Baseline Replacement Cost tool.

InfoMaster’s Baseline Replacement Cost tool has four main inputs: Install Date, Material, Replacement Cost, and Life Expectancy. The range of years, interest rate, and pipe length are also inputs, but these four main inputs determine whether the tool will be successful and generate results or not. Below are descriptions for each of these four inputs:

1. Install Date – this is the year the pipe was installed.  The Baseline Replacement Cost tool will pull the year the pipe was installed from the full install date field.  Users can set the field InfoMaster will use as the Install Date field in the Facility and Asset Type Manager.  Pipes missing install dates will be noted in the IM Message window once the tool is run.  If a larger percentage of pipes are missing install dates, the tool will not run successfully.

2. Material – this looks at all the unique values in the Material field.  The Baseline Replacement Cost tool allows users to set different pipe life expectancies for different material types.  The Material field is set using the Facility and Asset Type Manager just like the Install Date field.  The field set as Material must have at least one unique value to run the tool successfully.

3. Replacement Cost – determines the cost to replace each pipe.  The replacement cost is derived directly from the Edit Pipe CapPlan Tables in the InfoMaster dropdown.  It comes from the ‘Replace’ rehab action.  If this default rehab action is edited in any way, such as renaming it ‘REPLACE’ or ‘Replacement’, the Baseline Replacement Cost tool will not recognize the costs and the tool will not work properly.   Any number of rehab methods can be associated to this ‘Replace’ rehab action.

4. Life Expectancy – affects when the Baseline Replacement tool determines for a replacement to occur.  The Baseline Replacement tool is very simple in this regard; if given an install date of 01/01/1950 for a CIP pipe and a life expectancy of 50 years for CIP pipe, the replacement will be assumed to occur in 2000 and the replacement cost will be applied to this year.  In addition, the replacement cost will always be applied to the year 2000 even if you set the range of year to not include 2000.  So if a pipe should have been replaced in 2000, but a user runs the Baseline Replacement tool for 2018-2050, the cost for that replacement will NOT be shown in 2018.  It will still be applied to 2000 and will not be shown in the resulting graph.  In this way, the year setting is simply a view for the entire graph the Baseline Replacement tool generates.

Note that users can manually input the life expectancies in the Material Life Span Setting table or they can use results from failure/reliability analyses. Regardless of whatever method the user chooses, the same method will be applied. In the first screenshot above, the DIP life expectancy is 47 years. So, if the pipe was installed in 2000, the pipe replacement will occur in 2047. Conversely if pipe life expectancy is set via failure/reliability analysis like in the screenshot below, the DIP life expectancy is only 39 years and the pipe will be replaced in 2039.

It is completely up to users to choose how they prefer to set life expectancies for their different materials or other categories. InfoMaster simply allows these two options for pulling life expectancy data.

 

The Baseline Replacement Cost tool is a relatively simple analysis with simple inputs to help model THE QUESTION:

When will my pipes fail and how much will it cost me?

Because of its simplicity, it can’t capture everything, but it gives users a good starting point. For additional statistical analysis, users should run the Cohort, Regression, and Life Cycle Analysis models.

For more information on the Baseline Replacement cost tool, please contact Innovyze Support and check out these related blog posts on ‘Special’ fields in InfoMaster (http://blog.innovyze.com/2017/12/14/special-infomaster-fields/) and Failure Deterioration Analysis (http://blog.innovyze.com/2017/11/02/failure-modeling-in-infomaster-8-0/).

 

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