Pavement management concepts are discussed, and a method is presented illustrating the required data and its use to accumulate EAL's annually for comparison with the design EAL. This method can be used to determine overlay priorities, overlay design thicknesses, and financing schedules. A discussion of automatic feedback of field data is presented. Pavement condition reports should be analyzed separately to prevent improper adjustments in the design system due to causes of failure other than normal fatigue. An overlay, whether for extending service life or improving skid resistance, provides an additional structural thickness and will modify the design life. Preparation of the R-R-R cost estimates in the fall of 1976 offered the opportunity, and necessity, to implement a pavement management scheme. The methodology used to prepare the cost estimates are discussed in relation to overlay design and scheduling of resurfacing on the Interstate System in Kentucky. There are compounding and confounding factors which may distort pavement performance and confuse a pavement management scheme based only on the structural adequacy of the pavement. Such factors and influences as D-cracking, expansive aggregates, ditching, skid resistance, roughness, and rutting are discussed.