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Condition-Priority Matrix
A matrix that plots the relationship (correlation) between the condition and priority of facilities (or assets) and represents the data as a scatter plot.

In reference to buildings, it is also referred to as "Portfolio Criticality Matrix".


Purpose
The primary purpose of the condition-priority matrix is to make informed decisions regarding the following:
  • To assist with making decision on whether to contibnue with reinvestment in an existing facility or redevelopment of a new facility. (see also: freehold-to-leasehold ratio).
  • To make resource allocation decisions to facilities based on their relative mission criticality ranking, particularly in light of budget constraints. 
  • To assist in prioritization of indvidual facilities through a breakdown of the number of buildings in the portfolio that have been identified as falling within each of the three primary condition categories.


Matrix Dimensions
The condition-priority matrix is comprised of two dimensions, as follows:


The Horizontal Axis
The horizontal (x-axis) is comprised of an index the following condition grades that establish the FCI-Distribution by Building:
The horizontal axis is sometimes represented by the EFCI rather than the FCI. The FCI is a factor the quantum of deferred maintenance (in the case of a freehold) or quantum of permissive wasting (in the case of a leasehold interest).



The Vertical Axis
The vertical axis is organized into the following tiers that establish the MDI-Distribution by Building:
FCI (x) - MDI (y).



The Four Quadrants
Listed below are the four quadrants that make up the condition-priority matrix:

This analysis enables the facility manager to focus resource allocations towards the buildings in greatest need and to establish an appropriate strategy for the entire portfolio.



Methodology
Listed below are the key steps in the methodology to derive and analyze the condition-priority matrix:
  • Establish the indexes for the horizontal (x) and vertical (y) axis
  • Normalize the indexes to the classes and circumstances involved.
  • Conduct a facility condition assessment (FCA) to establish the condition of the facilities (horizontal axis)
  • Assign a mission criticality to each facility (vertical axis) using the mission dependency index
  • Plot the correlations of FCI-MDI on the matrix.
  • Establish the date of the matrix.
  • Identify the number of facilities in each of the four quadrants.
  • Identify the types of facilities by class (department, etc)
  • Identify the copula to match the pattern on the matrix.
  • Determine the target quadrants for each facility.
  • Review against the data in other matrices, such as the condition-age matrix and the condition-energy matrix.


Analysis
Listed below are the five patterns that may sometimes be discerned in the scatter plot data:

      A. Types of patterns
      B. Elements of the patterns
Further information on each of the above listed analytical concepts can be found on their respective pages in this asset management glossary.



Evaluation
Listed below are the key steps in the methodology to derive and analyze the condition-age matrix:
  • A simple representation to quickly establish priority rankings.
  • The matrix is more effectively applied to facilities rather than to assets.
Listed below are some of the limitations of the condition-priority matrix:
  • The designation of priority rankings to individual facilities is sometimes a subjective exercise and there can be differences of opinion between different departments within the same organization.


Management Principles
Included below are some of the asset management principles to be considered relative to facilities in different locations on the condition-priority matrix:
The strategic planning and tactical planning varies significantly for each of the four quadrants, which will revolve around different ratios for the following actions:
  • Continued reinvestment
  • Redevelopment of a new facility (freehold)
  • Negotiation of a new interest (leasehold)
Illustration of how the facility condition index is generated for facilities to develop comparative analysis.
Fig. Illustration of how the Facility Condition Index (FCI) is generated to develop the horizontal (x) axis of the matrix.


Three tiers of criticality on the Mission Dependency Index (vertical axis)
Fig. Three tiers of criticality on the Mission Dependency Index (vertical axis).
For example, Condition of a Building represented on the horizontal axis and the age of buildings represented on the vertical axis.


Scatter plot of facilities mapped to the three tiered Mission Dependency Index (MDI).
Fig. Scatter plot of facilities mapped to the three tiered Mission Dependency Index (MDI) revealing the correlation between condition and priority.



MDI quadrants and corresponding action classes.
Fig. The four MDI quadrants and the four corresponding action classes.



Sample of an array of facilities mapped on a grid with FCI along the horizontal axis and MDI along the vertical axis
Fig. Sample of an array of  facilities mapped on a grid with FCI along the horizontal axis and MDI along the vertical axis. Bi-variate matrix with condition on the horizontal ("x") axis and mission criticality on the vertical ("y") axis.


A sample of a condition-priority matrix for a large portfolio of facilities from different departments
Fig.  
A sample of a condition-priority matrix for a large portfolio of facilities from different departments (identified by colour coding).


matrix Asset Insights
Fig. An example of a multi-variate matrix to plot relative condition, priority and backlog quantum.3D Matrix with condition (FCI) on the horizontal (x) axis, priority (MDI) on the vertical (y) axis and backlog quantum on the (z) axis. Each of the red bars represents one of the facilities in the portfolio.


I. Care is strategizing in order to allocate limited resources across a portfolio of buildings
Fig. I. Care is strategizing in order to efficiently and effectively allocate the limited resources across a portfolio of buildings with different mission criticality rankings.



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Fig. Fire halls are typically deemed mission-critical within a civic portfolio.




Fig. Departments colour coded to reflect mission criticality rankings.

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