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Methodology

How the failure likelihood model works, how it is calibrated to your network, and where its limits are. This describes version 0.1.0.

What it estimates

For every water main, gravity sewer and rising main in your network, the model estimates the probability of at least one failure in the next year and over a planning horizon you choose (for example 20 years). Assets are then grouped into four risk classes, low to very high, using thresholds you set.

The model

Failures are modelled as a Poisson process. The failure intensity per kilometre of main follows a Weibull power law in the asset's age, so failures become more frequent as pipes get older, at a rate that depends on the pipe's cohort.

expected failures per km between ages a0 and a1 = (a1 / eta)^beta - (a0 / eta)^beta

P(at least one failure) = 1 - exp( -length_km x expected failures per km )

Parameters (beta, eta) are held per cohort: material, diameter band and install era. Longer mains are more likely to fail than short ones. Repairs do not reset a main's age.

Calibration to your network

Out of the box the model has illustrative default parameters. They are not fitted to any real network. The value comes from calibration, where the parameters for each cohort are fitted to your failure history by maximum likelihood.

Backtesting

Before a calibration is approved, the most recent years of failure history are held out. The model is fitted on the earlier years, asked to predict the held-out years, and compared with what actually happened. We report:

Explainable results

Every asset shows the factors behind its result (its age, its cohort, and its length), with how much each raises or lowers the risk, so a renewal decision can be explained to a board or a regulator.

Reproducible and versioned

Assumptions

Known limitations

Validation to date

Version 0.1.0 has been tested on synthetic networks generated from a known failure process: it recovers the true parameters within tolerance, and its backtest beats the constant-rate baseline. Validation against real utility networks takes place as part of each pilot, using your held-out failure history, and the results are shared with you.

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