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    MAMMaster in A s s e tM a n g e m e n t

    Master in Asset managementInternational Pasantia

    Coordinator : Ing. Marco Macchi [email protected] : Ing. Luca Fumagalli [email protected] : Ing. Sebastin Yez [email protected]

    Fundaments: Asset life cycle.

    The assets associated at productive process have risks of no payback their investment values. Therisks can to have causes related to the different stages of assets life cycle and no necessary showstheir consequences at the same time, even often its consequences are shown past the earliestasset age during their operation and maintenance stage.

    An optimum

    management shall beconcern an adequatecycle life estimation ofequipments to get theright opportunity toreplace the equipmentsand get the maximumNet Present Value (NPV),as its shown on attachfig.

    To concern an integralvision of asset

    management, since ofthe conceptual stage, itsdesign, its manufacture,

    erection, start up and dismissing, is necessary to understand and apply different kinds oftechniques and methodologies that allow to take the right decisions to maximize NPV during their

    cycle life.The choices that wehave depend ofdifferent criteriaadopted during theearliest stages of theassets life cycle,

    giving differentbehaviours of the totalcost of the project.Lows standards at thebeginning could bemeans high costduring the operation,maintenance or andanticipate prematurelyequipment replaces.

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    Scope of the work: Good Practices

    The above concepts require applying a set of a Good Practices. The kind of matters depends ofindustries types. The Pasantia goal is to take practical reviews during technical interviews withmanager of assets in those mentioned stages. To take a review of their practices verifying in ownscenarios its achievements of assets management integral vision.

    For to undertake this work is necessary the most complete information that the professionals andthe time available allow to have. To get the information, an strategic interviews plan must beconsidered.

    During the interviews shall be taken different kind of evidence and register of those practices.

    To get that goal it had been considered interviews with the followings enterprises:

    1. STF S.p.A. / Magenta - LombardiaSector: Design, manufacturing and built-up equipments for energy plants and high pressure andtemperature vessels.

    2. Rina S.p.A. / Genoa - LiguriaSector: Naval register, Industrial Certificated and Technical training.

    3. Ansaldo Energy / Genoa - LiguriaSector : Italian energy generator.

    4. Instituto Italiano de Soldadura / Genoa - Liguria

    Sector: Research, development and training on metallurgy manufacturing techniques, inspection,and procurement certification.

    Schedulling: Visit Program

    The visits program will take about 20 days long during September 2007.

    Resume: Final Report

    A complete report of the good practices found at interviews shall be prepared to discuss with tutor

    and coordinator of this program.

    SYD/syd - sep. 2007

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    Visit Report

    Enterprise : STF S.p.A. / www.stf.itContact : Ing. Michele del Vecchio / [email protected] : Quality Control Manager.

    History

    The STF group has an industrial complex with 160.000 m2 of total covered areas and 32.000 m2 ofcovered manufacturing area, located in Magenta town, 25 km. near to Milano, Lombardi Region.

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    Main products and services

    STF offer a complete set of services from design, development solution, up grades, modifications.In this stage there are a close approach between client, STF and technical reference advisor.

    STF has related agreement with different entities, ASME, Foster Wheeler (American Boilermanufacture licence). Its agreement allows to STF to have under control the main conceptstandards for different applications.

    Those standards provide useful criteria about performance equipment and know-how for operationand maintenance activities.

    Under any circumstance of changes, to up grade capacity or efficiency this standard give thereference for make decision, in order to choice the right new materials, new security advices ornew dimension or equipments capacity.

    Main markets

    The STF target markets are industrial boilers, gas turbine, heat recovery and steam generator. Inorder to reach this target they are owner of specific technology and license for design, develop,manufacturing, erection and start up specific equipment and whole installation for energy plantsproject.

    Organisation

    In plant STF has about 200 professionals and technicians whose working directly. In the different

    site where STF has their project, is working about 1.000 employees.

    The headquarters has a complete installation to satisfy all client requirements.

    STF has an engineering department for study new proposal. But their main objective is to solvemanufacturing and construction problems to the production line inside STF and to the team projecton client site.

    Purchasing and project management provides materials delivery control in accordance withspecifications. They make the first control for workshop order traceability.

    Production department involves different process into the site :- Machinery shop: here works qualified welders. They could obtain and maintain itsqualification up-grade and related exclusively for specific process. Even some qualificationsare validated for a specific project life only in order to guarantee full quality achievement.Normally the welders doing the first steps into the join parts.

    - Pressure Parts manufacturing: The prepared parts are assembly and doing the last weldssteps.

    - Heat Transfer manufacturing: As previously described for the thermal equipments in thiscase.

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    - Surface treatment: Last one manufacturing process to get certain hardness in specificparts.

    - Storage: Place to keep stand by intermediate parts o finals pieces to be delivered.- Quality control: This function across the entire organisation to get specific control inside theprocess and take corrective tasks immediately when they happen. The main function is totake all register in each step of the process, each shift, including all workers that made anytasks on the pieces. These kinds of information allow guarantee the equipment under thedesign specifications. In addition, Quality Control Department is an internal controller, butalso is the entity who gives response any questions of the client controller. In some cases,

    the project the participation of expert considers, such as an ASME inspector.

    Best Practices

    StandardsFor design process STF use ASME, API and UNI EN its allows keep safety standards.

    To control the manufacturing process, STF apply ISO 9000 standards, its allows keep undercontrol all design parameters

    Quality PlanTo keep under control all design parameters and task registers STF use a master plan PCQ(Plan of Control Quality) where its belongs all necessary reference for planning works,verified welders qualifications and procedure certifications. Its systems allows to know inany moments all data concern to the original material source, workers, humidity control andother parameters for traceability.

    Fabrication Drawings

    Engineering department provide all specification for complete the standards. Its includereference for each welding and assembly procedure into the unassembled drawings.

    Procedure CertificationsIts belong to PCQ as Quality Control and provide specification and testing for weldingprocedure in order to guarantee to keep design parameters.

    Welders QualificationsAlso belongs to PCQ as Quality Control and verify the welders ability for doing specific task,find the root into the join pieces or finish the last step in different position.

    Non Destructive testNDT allows to keep under control all job development, doing Ultrasonic Test, Magnetic

    Particles, Penetrate Liquid, Ionized Radiation and Hardness Measurement. Have a specialconsideration to affected zone area (AZT) because is the critical point and a wrong job willproduced high failure risk.

    Traceability / stampillado

    All the single parts and components of the equipment in manufacturing process areidentified by metal mark, from the material reception to the each one of process step.The

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    system allows guaranteeing for the clients the materials quality used for built up theequipments are under engineering specifications.

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    Assets reference

    STF have concern into the earliest age of assets. Since that their final client has the project inconceptual terms gives a first input to develop specific equipment under their own standardrequirement.

    Those standards are defined by authority requirements, environmental request or business needs.In some case the state-of-art made a contribution to determinate this kinds of matters.

    In this age (project & development) technical-economical evaluation are made in order todeterminate the return investment and the asset life expectancy. This period must be keeping onthe cycle life.

    For that reason many important details must be controlled in order to get all design parametersduring the manufacturing equipments.

    This is possible to obtain if is apply a strict quality control systems.

    If all control are been applied then is possible reduced de risk of failure for assembly or erectionreasons, given more capital payback of the investment because the asset will be keep on service.

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    Photograph reference.

    Fig. 1 : Nuclear plant reactor body for France site. Top view.

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    Fig. 2. Nuclear plant reactor body for France site. Side view.

    Fig. 3. : Reactor shell machining.

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    Fig. 4. : Reactor cup under the quality process control.

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    Fig.5: Heat exchanger of gas Turbine in assembly and tubes positioning.

    Fig. 6: Orbital welding for Heat exchanger of gas Turbine.

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    Fig. 7. : Multi welding machine. It registervoltage variation in order to get all theinformation about the task doing out ofthe range allowed during the each step.

    Fig. 8. Metal markapplication for laterrecognize task duringthe trace applications.

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    Visit Report

    Enterprise : Rina S.p.A. / www.rina.itContact : Ing. Danielle Giorgi / Head of Operating Control Section / [email protected]. Andrea Bombardi / Project Manager / [email protected]. Alfredo Traverso / Transport&Log. B.U.Technician / [email protected]

    History

    Rina is a Naval Registry Agency that has operations since 1861, founded as a no profits enterprise.The naval survey services are the main offer field into their wide range of services. They coveredwhole the world given support to the navies at the principals ports of each country. Rina hassubsidiary divisions as a Certification and Industrial division, Rina Industry and Rina SOA - SocialOperation Accountability.

    Main products and services

    As a Rina Certifications and Industrial Division provide various types of services as the followings:- Industrial process Certifications.- Products certifications.- Welding procedures Certifications- Welders qualifications.- Training

    As a Rina Industry provide services in all stages of a project on course:

    - Engineering:o Certification / verification.o Design appraisal.o Risk analysis and Risk Assessment. / HAZOP studies.o Consulting engineering services.

    - Procurement:o Suppliers qualifications.o Review of specifications and inspection plans.o Inspection, testing an expediting.

    - Construction:o Quality assurance and control supervision.o

    Site inspection during constructiono Health, Security and environmental services.

    - Installation andOperations:

    o Marine operations.o Installations procedures.o Assistance during commissioning.o Preparation of maintenance plans.o Assistance during maintenance.

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    Main markets

    Energy & Process : Oil & Gas sites and installations and Power Generation Plants.Industry : Productive plants.Infrastr.& Construction : Building and constructions companies.Transport & Logistics (*) : Owners, operators and suppliers Railways products and services.ServicesHealth Sector - Food : Foods factories, delivery and commercialisation.Government : Public authorityFinancial Services : Banks, assurances and brokers entities.

    Organisation (*)

    The Rina organisation is very wide and complex systems and will cover more than the work scopeof this paper. For that reason, a selection of representative one sector as a Transport and Logisticand its specific market of the train and railways systems were made.

    RINA was notified by the Italian Ministry of Infrastructures and Transport as a Notified Body toassess the conformity to the Technical Specifications for Interoperability (TSIs) of subsystems andconstituents both in the high-speed rail sector (Official Gazette no. 207 of 4 September 2002,according to decree 299/01 implementing Directive 96/48/EC) and in the conventional rail sector(Official Gazette no. 169 of 22 July 2005, according to decree 268/04 implementing Directive2001/16/EC), for the following subsystems:

    Infrastructure

    Energy Control-command and signalling Operation Rolling stock Maintenance Telematic applications for passenger and freight services

    Best Practices

    As a mandatory requirement the Italian railways industry needs to adapt their infrastructure tobecome compatible into the European railways networks.

    In order to help to complete this process conversion, Rina had become developed different service.These services will allow establishment the new technical standard and keeps the safetyparameters for the industry.

    Thus, the train industry in Italy will keep their position and competitive in the market, especially inthe high velocity service, facing passenger and freight transportation industry.

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    Therefore, the alignment to technical standards (STI) defined for the high-speed trans-Europeanrail system contributes to make the international rail transport service simpler, more performing

    and appealing for the travellers.

    It makes simpler to the producer in the rail sector selling their products out of the national market.

    It allows the producers getting higher scale economy, limiting the need of personalisation to adaptproducts to single national rules, overtaken by international standards. The economic benefitsobviously spread to the managers of subsystems.

    As any industry, trains and railways operations have it owns risks. The control of this risk means avariety matters concern with the passenger and freight security. In a resume it can reviews someprojects for achievement the governmental requirements.

    - Verification of Interoperability

    o ITALIAN RAILWAYS NET (RFI)/ Roma Napoli High velocity line Energy subsystem andinfrastructures.

    o ALSTOM (Railways information solutions)/ Mobile terminal and radio communications on board.

    o LUCCHINI SIDERURGICAL/ Rout components.

    - Functionally and Security Assessment.

    o RFI (Italian Railways Net)/ Functional assessment of electrical devices provided by Alcatel.

    o LTF (Lyon Turine Ferroviaire)/ Conformity Assessment of the High Speed line project.

    o ANSALDO (Railways Signs)/ Safety assessment of encoder for the Belgian Railways.

    o ANSALDO (Transporti Sistemi Ferroviari)/ Safety Assessment of the track side signalling system for Piscinola

    Aversa centro line.

    - Rolling stock homologation process support.

    o RFI CESIFER consortium/ Vossloh G2200 BB ans Mak 1000 BB Diesel- Hydraulic locomotives

    and Stadle GTW 2/6 Diesel Multiple unit : Brake systemconformity assessment for technical admittance on RFI networks.

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    0

    0.05

    0.1

    0.15

    0.2

    0.25

    0.3

    0.35

    1992 1993 1994 1995 1996 1997 1998 1999 2000

    FS (Italia)

    SBB (Svizzera)

    DB (Germania)

    RENFE (Spagna)

    SNCF (Francia)

    Indicatore relativo alla mortalit per incidenti

    tipici UIC(morti / milione di treni km)

    o GENERAL MOTORS/ Diesel electric locomotive class 66: support for technical

    admittance on RFI networks.- Test and inspection.

    o ANSALDOBREDA/ Technical inspection on bogies retrofit for MetroRoma Line andATM Milan Sirio Tramway.

    o OFFICINE DI ARQUA 96/ Conformity assessment of front ends technical test for Rhilmmswagons on behalf of TrenItalia.

    - Technical support.

    o ERA (European Railways Agency)

    / Survey of good practice models in the across acceptance of rollingstock through the experience of acceptance of Class 66 freightlocomotives in EU member states in partnership with LloydsRegister Rail (UK The Netherlands)

    o ALSTOM Ferroviaria Savigliano/ Training course on design methodologies related to Life CycleAssessment (LCA) an Environmental Product Declaration.

    - Management systems certifications.

    As support and certification service resume, it can mentioned services in different stage of therailways chain supply as Railways Operators, Railways suppliers, Mass Transit Operators, Logistic

    Operators.

    Considering the mass transit sector, Rina has recently developed new certification schemesconcerning some key issues for mass transport operators:

    - Maintenance Services Certification: Following the guidelines developed in cooperation with(Italian Maintenance Association).

    Performance indicator.Considering that modificationssystems could cause nodesirable effects, it been

    necessary to have under controlthe main performance serviceindicator during the updateprocess.Today, before 2002 date whenchanges began - is not availablethe last results of that indicator,but it shows here as knew targetof the industry.(Source: Rina Transport & Logistic)

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    Assets reference

    As a provider services, Rina have not direct influence over the operation decision on the differentassets ages of railways business, but its support make easy to take the best choices for the assetsmanagers of those customers companies.

    - Standards HomologationConsidering that the homologation is a mandatory from the government requirements, market andsecurity points of view, it must be have nearby all technical requirements in order to achieve asuccess adjust process and its maintenance along the assets lives cycles.

    - Equipment Reliability AssuranceIn order to obtain the high reliability standard of the industry, the different kinds of tests fortechnical admittance have a massive importance. The fidelity of information since the raw materialsare income to process line with their adequate reception and the system to support the traceability

    assists to assure the maximum reliability require. Even in the unfortunately cases that necessarymake an exhaustive examination for serious injure to the passengers, equipment o installations,this support give an important information to keep assets condition under the continuousimprovement.

    - Maintenance systemizationIn fact, Rina no have several practical experience about maintenance programs, but is in course theexecution of the certificated methodology for allow to the different railways operators keep inmaintenance the technical requirements and reliability of the systems. Do the right thing at the bestopportunity in the best way.

    - High Security Standard achievementProviding the best technical standard concern in the all ages of the asset life cycle will allow to the

    owner to have best reliability performance during railways and equipments operation. Thisreliability level brings a security operation without unwanted failures, convoys collision, freightlosses or death passengers, keeping under control the consequences during maturity assets age.

    The graphics shows above give a performance indicator of different policies and strategies appliedduring the cycle life ages. In order to have measure results during of change manage processrequired by new normative, this indicator must be maintain or improvement.

    - Competitiveness maintenanceConsidering all European ground transport market, the train system (passenger and freight) hasstrong competitors in bus and truck industry. For that reason, the train industry needs improvementthe travels and deliveries times. Make the train systems homologation between different Europeans

    countries allows use high speed train system without transfer times. Certainly this competitiveadvantage provides at least its preservation in the market.

    - Service improvementThe transport response time means the most important factor that the customers valorised, andthen all technical improvement in this way will involve a service improvement.

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    - Update opportunitiesThe investments on improves involves an important amount of resources in a normal situation and

    a lot of them are postpone. With the mandatory requirements is more likely that improves takeplace. Then, this new requirement it becomes in an opportunity for assets update or retrofit.

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    Visit Report

    Enterprise : Istituto Italiano della Saldatura / www.iis.itContact : Ing. Stefano Pinca / [email protected]. Giancarlo Canale / [email protected]

    History

    The Italian Institute of Welding (IIS) is a non-profits private organization, set up in 1948 as anassociation of individual and legal persons, whose main tasks are research, training, certificationand technical assistance in the field of welding.

    The IIS is provided with the most modern equipment which is continuously updated, with the aimto attain the best qualitative results. In 1988 its seat was moved to the actual building in Genoa,

    where technical departments and laboratories are gathered in an area of 11.000 sqm, 7.500 ofwhich are covered.

    The Italian Institute of Welding holds the Secretariat and the Presidency chair of the UNI WeldingCommission and in this capacity it participates, with right to vote, to the works of ISO (InternationalOrganization for Standardization) and of CEN (Committee European de Normalisation).

    During its more than fifty years activity, the Institute actively contributed to the formulation of anhuge amount of technical standards, taking profit both from its study and research experience andfrom the practical know-how coming from its technical assistance activity.

    Main products and services:

    The IIS offers the followings specialized services and their products to the industry:

    - Welding and NDT procedureso EN 288 / EN ISO 15600o ASME BPV Code Section IXo AWS D.1.1o CEN TC 138 W.I.091

    - Quality management systemso ISO 9001:2000o ISO 14001

    o EN 729/ISO 3834 according to the EWF schedule and to the EA 6/02 guidelineso EMS schedule, EWF welding environment

    - Productso Simple pressure vessels (Dir.87/404/CEE)o Pressure systems (Dir.97/23/CE)o Fabrication materials (Dir.89/106/CEE)o Low voltage (Dir.73/23/CEE)o Welding consumables

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    - Assistance and informationo Qualified and updated assistance on the progress status of standardization works

    at CEN and ISO.o Information on the standardization trends in the different specific welding andallied techniques sectors, for a better orientation of design, organization andproduction choices.

    Main markets

    The main activities are focuses on these specific industrials areas:

    - Education and training.

    - Research and documentation.- Certifications and approvals.- Laboratory analysis and tests.- Engineering.- Technical assistance in welding- Diagnostics and non-destructive tests.- Standardization.- Publications and technical events.

    Organisation

    The Institute has a staff of around 190 people, of whom about two thirds are graduate or non-graduate engineers.

    The IIS is characterized by its multidisciplinary and versatile structure, made-up of operativedivisions, each specialized in its competence sector and offering a global service: from design tofabrication and final test of welded structures, in Italy and abroad.

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    Best Practices

    The IIS Engineering Division offers industrial services covering two activity sectors;

    - Design and Calculate, and- Reliability evaluation of plants, components, materials.

    By means of the most advanced numerical calculation software in the field of metallic constructions,pressure equipment and pipes (ANSYS, AUTOPIPE, AUTOCAD, etc.), the Institute supplies servicesincluding design, calculation verifications, residual life evaluations in all working conditions (i.e.fatigue, creep). The Engineering Division can also supply Fitness for service and collapse riskevaluations, by means of internationally recognized software like Crackwise TWI (according to theBS 7910 standard) and VCESage (according to API 579). Materials behavior studies are carried outrelated to the working conditions and choice of materials criteria are formulated. Risk analysis ofplant components is carried out according to the API 580-581 standards (Risk Based Inspection)

    including the definition of inspection plans and programs for pressure equipment, piping andstorage tanks. IIS is member of API-RBI User Group and works with the Official software E2G-API581.

    - Design and calculation

    Pressure equipment (dangerous vapour and fluids)

    Oil and gas pipelines. Storage tanks.

    Metal structures. High temperature applications (creep) Low temperature applications (fracture mechanics and

    fragile cracking) Declaration of new projects, modifications, repairs. Expired life evaluation of components working in creep

    conditions

    - Expired life evaluation Reliability of plants components - materials

    Risk level evaluation and inspection programming basedon risk, according to API 580-581 (R.B.I Risk BasedInspection) standards

    Fitness for Service analysis Reliability of oil and gas pipelines Consultancy, assistance, verification and validation of

    pressure equipment use and maintenance manuals,according to Dir. 97/23/CE (PED)

    HAZOP studies and risk analysis

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    Compatibility evaluation of materials towards workingconditions

    Material selection Failure analysis in cooperation with the Institutes

    laboratory including determination of breaking, collapse,malfunctioning causes

    Corrosion phenomena analysis and corrective actionsdefinition (corrosion control).

    - RBI Risk Based Inspection:

    High hazard process plants are periodically shutdown for maintenance and inspection turn around.This activities are fundamental for assure a safe operability and reliability.The high daily production on these plants forces user to dramatically reduce frequency and durationof this activities.

    The traditional inspection method is based on events o time criteria. More recently maintenanceand inspection planned based on reliability criteria. The last approach is the risk based criteria.RBI is a process of carrying out risk analysis to determinate an optimum inspection plan. Fromexisting practices for inspection planning its made a riskanalysis and determinate future inspection plan througha rigorous scientific approach to managing pressuresystems risk.The risk definition as a combination between probabilityand consequence of a failure allows managing the risksby ranking priors.The probability of failures involves different factor forconcern: Fabrications factors, inspections history,operations parameters, procedures and managingsystem and the time.The consequences of failures involves different factor forconcern: hazard of fluid release, driving forces, quantity,adjustment to release rate / release mass.This analysis could be represented on a matrix.

    The RBI process considered:- Data collection- Analysis and damage mechanisms.- Risk analysis.- Validation of results.

    - Inspection planning.- Execution of inspection.- Repairs, modifications, fitness for services, re-rating, etc.

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    - Standardisation

    With the purpose of connecting the standardization and study activities in the sectors of interest,the Institute constantly cooperates also with European and international bodies and organizationsstatutorily involved in welding, such as CEN (Committee European de Normalisation), ISO(International Standardization Organization), EWF (European Welding Federation) and IIW(International Institute of Welding).

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    Assets reference

    Design and CalculateIn the earliest age of the asset life cycle the main important thing is to have in concern theexpectancy service life. This input is necessary to make the design considerations (materials,forces) and the following calculate supported by finite elements modelling. The assets behaviouralways will be verified with the design parameters. The services brings by ISS allows certified thatthe first considerations was makes right.

    Reliability evaluation of plants, components, materials.

    The different kinds of analysis and probes makes during the manufacturing, erection even alongthe operation age provide certain to the owner about the assets condition. These types of analysisgive enough support to take decision to repair, to modify or to replace the assets.

    Risk Based Inspection

    The advantages of the RBI process are:- Consistent with the principles of safety preservations which the legal requirements for

    Service Inspection are traditionally based on.- Accepted by insurers and jurisdiction bodies as a sound basis for lowering facility risk

    extending inspection intervals or adopted alternative non-destructive inspectionprocedure.

    - Effective tool for priority ranking of inspection and maintenance activities.- Optimization of inspection resource.- Dynamic process for risk management.- Involvement all plant departments. (management of change)- Improvement of the plant available.- Reduction of unscheduled shutdowns and loss production.

    Limits of RBI methodology are:

    - Only concern the loss of integrity of pressure containing parts, functional failures arenot considered.

    - RBI is not a self-supporting tool for maintenance Turn around Industrial Planning; RBImust be matched with a reliability centred criteria for managing maintenance activities.