Summary: Pavement Management is a broadly based process which encompasses the set of all activities required to provide and maintain pavements. Several important concepts are discussed including the level of influence concept, planning and prediction in PMS. The key aspects are summarized as follows: 1) Generally, four subsystems planning, design, construction, and maintenance (including rehabilitation) share equally in the total PMS. In some cases, the planning subsystem may be emphasized more than the others due to its higher influence-level. 2) The PMS can best be divided into three general levels of decision making, (a) project level, (b) project selection level, and (c) program level, in order to explain different formulation procedures of PMS models and their interfaces effectively. 3) A pavement performance prediction system should be developed and implemented in an overall pavement management organization in any state highway agency, contributing to improvement in all phases of PMS. 4) There remains a need to develop a long term history of pavement performance data oriented toward pavement management objectives in order to develop for each state a wide variety of models and relationships which can be used to improve our ability to design, maintain, and manage our pavement resources.