Reliability driven companies achieve 99.9 percent operation availability albeit having only 25 percent asset strategies for their most critical assets. Regardless of the constraints they are facing, these reliability-driven companies believe in developing risk-based asset strategies rather than consequence-based OEM maintenance asset strategies.

Nowadays, many asset-centric organizations are looking for reliable plant history in terms of people, process, standards and technology used to manage risks and operations before committing to any manufacturing policies.  Many engineering, procurement and construction (EPC) companies also understand that the days when OEMs were able to dictate their terms to use their parts and resources to manage their equipment are over. Today many top-tier plant/operation owners are aware of the risk-based approach and are likely to follow certain standards such as API, PAS-55000, JA1011/12, IEC, etc. These standards help them to understand the risk and criticality of each asset.

Many asset-centric organizations are looking for reliable plant history in terms of people, process, standards and technology used to manage risks and operations before committing to any manufacturing policies.

The development of risk-based strategy helps companies to achieve these objectives:

  • Understanding critical assets for operation and production
  • Understanding criticality in terms of safety, environment, operation, service level, cost, etc.
  • Understanding the age and remaining life of an asset
  • Developing replacement vs. maintenance strategy
  • Developing intelligent asset strategies based on risk facts and real-time information
  • Optimizing asset strategy and implementing it to EAM/CMMS to increase effectiveness
  • Adhering to various standards such as API, PAS55000, JA1011/12, IEC, EPRI, etc.

Let’s look at the process from the very beginning. The first step after extraction of the master data and work history is to assess the criticality of the whole plant by performing a risk analysis. Risk assessment analysis can be done in semi-quantitative ways like Hazop analysis, FTA, mathematical approach, event tree analysis, risk graph or simple qualitative risk matrix tool like the product of potential consequences vs. likelihood (see figure). Most companies use various risk matrix known as 5 x 5 or 6 x 6 for safety, environment, production and cost, among others. The results are then plotted from high to medium to low critical assets/systems. 

Potential Consequences APM

Once the company knows the risk and criticality of an asset the next step is to develop the appropriate intelligent asset strategies to manage, execute, evaluate and track the performance and effectiveness of the asset.

Developing an overall asset strategy based on single source of truth, real time information, failure history, industry data and other standard methodologies will definitely provide peace of mind. This is part of a continuous improvement journey where asset strategy is managed dynamically to achieve safer environment, predictable production and better margin. This works well even if the assets are aging as the asset strategy will give an accurate level of sustainability and predict production at acceptable risks.

What are you waiting for, it’s time to find out which ones are your most critical assets and implement intelligent asset strategies for them.  

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About the author

Ranjit Kumar

APM Solutions Consultant, GE Digital

Ranjit Kumar serves as an APM Solution Consultant for GE Digital. With 21 years of experience in this field, Ranjit has architected end-to-end solutions helping customers achieve sustainable and predictable production at the lowest operation and maintenance costs, reduce overall risk, and increase production capacity. Ranjit earned a Master of Science in Organic Chemistry and System Management and Information Technology.

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