criticality analysis wiram webinar nov 17
TRANSCRIPT
Jennifer Zach, CMOjennifer@uberlytics.
com
www.uberlytics.com
480.414.4636
Criticality AnalysisSetting Up Asset Management Programs for Success
Introduction to Criticality Analysis
The What & The Why
What is the Aim?• Successful and sustainable Asset
Management programs and all the benefits that these programs should bring.
• Achieving this depends on building your program on the right foundation.
A criticality analysis is foundational to successful asset
management programs.
When we understand what is critical, we can:
• Make better risk-based decisions• Manage & mitigate risk• Set priorities and focus
Definition of Criticality
Criticality is a measure of the relative importance of something, usually a tangible system or asset, to the corporate mission or aim, objectives and values of your organization.
crit·i·cal·i·ty /kritəˈkalitē/• The quality, state, or degree of
being of the highest importance.• Having a decisive or crucial
importance in the success, failure, or existence of something.
What is a Criticality Analysis?
A criticality analysis is a way to determine which systems and assets are most essential for meeting the objectives and values of the organization, in order to set priorities for further reliability initiatives and deeper analysis.
How do we evaluate criticality?
• Against a grid of criteria based on organizational values & objectives.
• Process includes assessment of risk through looking at levels of consequence and probability in plausible failure scenarios.
CA Quick DescriptionA criticality analysis is a means of:• examining and understanding available data • collecting and preserving organizational knowledge• understanding the effect of a failure of a system or
some part or whole of an asset• evaluating the severity of the resulting consequences• ascribing a likelihood to the failure occurring; and then • organizing all of this information to compare and rank
the results.
Common Misconceptions
Criticality ≠
Condition ≠
Priority
Criticality, Condition & Priority
The criticality of an asset or system depends on its relative importance and impact on performance. • influenced by design • how it interacts with and relates to neighboring assets and systems• associated consequences of performance failure
The condition of an asset is a measure of its current state, at some point along a relevant failure curve.
Priority is set by the relationship between the criticality and the condition of an asset.
Is an expensive asset a critical asset?
( Is an inexpensive asset not critical? )
Things We Hear About Criticality
(For Real)
“We already know what’s critical.”
“Everything in our operation is critical.”
“We assign a high criticality ranking to everything that
touches product. Everything else is mid or low critical.”
“Critical assets will make themselves
known.”
“A criticality analysis is going to take too long and cost too much – can’t you just tell me
what is critical?”
You will not have any criticality/risk rankings to help set priorities and make decisions. OR You have rankings that are artificial/arbitrary and do not accurately reflect actual risk.
What Happens Without a CA
1. Missed opportunities for optimizing your programs.
2. Misdirected and misspent efforts and resources.
3. Unrecognized and unmitigated risk.
Potentially catastrophic.
An effective CA inevitably uncovers previously unrecognized risk.
Asset Register Register organized into Functional Systems and Asset Types
Criticality Analysis on Functional Systems
RCM on Critical Systems Condition Assessment on Critical Systems
Condition Monitoring (CM) on RCM/Critical Systems
PM optimizations on RCM/Critical Systems
Capital Planning based on Criticality, RCM, Modeling
Reserve and Underwriting
Opportunities
Optimized Financials &
LOS
Operational Management Optimization based on System Risks, RCM, CM, Asset
Types analysis
GoalBenefits of CA
Benefits of CA• Aligned objectives, line of sight.• Risk discovery and mitigation.• Better risk-based decision-making.• Set priorities and balance competing
demands for limited resources.• Cross functional collaboration.• Improved data organization.• Enhanced asset base knowledge.
Criticality Analysis• Foundational to successful and
sustainable AM programs• Risk Discovery Tool• AM Alignment Tool• Vital Decision Support Tool
Criticality Analysis is Critical
Learn More About CA
.com