All Member Open Forum

 View Only
Expand all | Collapse all

What percentage of all assets, in a plant/site, should be classified as critical?

  • 1.  What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 11-27-2018 11:31 PM

    Based on my experience, many plants identify about 15% to 20% of all assets as critical assets.  One of the key RCM experts Anthony (Mac) Smith has often stated he feels that assets follow the 80/20 rule. He explains that 20% of all assets at a site should receive the most focus and receive a full classical RCM analysis. 

     

    Feel there are many opinions on what percentage of assets should be classified as critical.  However, has anyone seen a standard or other reference that outlines what percentage of all assets should be classified as critical? 

     

    Or, has anyone ever seen a study published on this topic? 

     

    Any comments or suggestions you many have would be helpful.  

     

    Thanks in advance




    ------------------------------
    Michael Eisenbise
    Retired
    BP
    League City TX
    ------------------------------


  • 2.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 11-28-2018 12:49 PM
    I have always followed A, B, C in an asset criticality  assessment with A=15 - 20%, B = 40 - 45%, and C = 35 - 40%, This has also helped me establish overall plant priorities in balancing facility and production equipment.

    ------------------------------
    Dale Deem
    CMRP
    Plant Engineer
    Novipax
    Indianapolis, IN
    ------------------------------



  • 3.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 11-28-2018 02:08 PM
    I think it is hard to put a fix number or standard on how many critical equipment a plant should have as this is subject to what your business deem as critical in their risk matrix(HSE ,Finance ,Reputation...) and what can be tolerated. For example in a facility processing Hydro carbons loss of containment would be a much greater risk and involve a lot more equipment that is critical to ensure this than a plant that process materials with a lower risk. So for me the following items are key:
    1. Have a documented risk matrix to use.
    2. Understand what the tolerability criteria for your business is.
    3. Understand what the risk register contain and what the equipment controls are to prevent or mitigate risk.
    4. Conduct criticality reviews with the input from an experienced cross functional team and involve SME as needed.
    5. What ever the criticality selected make sure you document the rationale and comments from the group for future reference.
    6. Do calibration/peer review.

    ------------------------------
    William Whitlock
    BHP Billiton Petroleum
    Houston TX
    ------------------------------



  • 4.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 11-28-2018 02:11 PM
    ​Good Morning;

    We did our own criticality analysis using John Moubray's RCM II as a reference. We tweaked it a little to make it a better fit for us. It still came out between 10-15% of all assets as critical. It did help more of us have a better understanding of what equipment we had and  it's location. I believe there are several other books and white papers that reference the criticality methods.
    Ours;
    priority 1, an asset failure that would create a whole or partial plant shut down. serious safety or environmental issue. A significant quality issue concerns.  A serious financial impact on the company. Any significant interruption of delivered product.
    Priority 2, an asset failure that will cause an environmental problem such as a spill. A product line or department shutdown. An operational issue significantly affecting department output, quality, cost, delivery or service.
    Priority 3, A process shut down or partial shutdown, interruption of delivery or service. Department cost or quality issues.
    Priority 4, support equipment that has redundancy.   

    Thank you,

    ------------------------------
    Tim Cowan
    Reliability Technician
    Blount Int.
    Portland, Oregon
    ------------------------------



  • 5.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 11-28-2018 03:42 PM
    Mr. Eisenbise,

    I have conducted a number of asset criticality rankings for clients over the past 10 years. My experience is that the Pareto principal "generally" holds true (15%-25%) of assets fall into the "critical" category. This is based on using a more granular approach to ranking with at least five areas considered/ranked. However, we focus on the ranking criteria and consistent application of the ranking criteria using a cross functional team.

    ------------------------------
    Kendall Beushausen
    Consultant
    Emerson - Operational Certainty Consulting
    Inman SC
    ------------------------------



  • 6.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 12-05-2018 06:41 AM
    Depending on the size and complexity of your asset fleet, anywhere from 5-20% is usual.
    More than 20% will be too much "care" for your assets because as we all know "critical" assets should receive the most of our attention and resources. Resources are not unlimited as we have expertise of asset care personnel so a proper cross functional team criticality analysis should be done.

    ------------------------------
    Mallam Ibrahim Lawal
    President/CSO
    Beina Maintenance & Reliability Services LLC
    Ikeja, Lagos, Nigeria.
    ------------------------------



  • 7.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 11-28-2018 04:05 PM
    Very much appreciate the time each of you have taken to respond to my post.  Also, it is very nice to have different perspectives on how various companies have establish the criticality of their assets.  It appears that many of you also find that about 15% to 20% of your assets receive the highest criticlity rating. 

    What I am looking for is a standard, that suggests that only 15% to 20% of assets should be identified as the most critical assets.  

    Does anyone know of a standard or other reference that address this topic. 

    Thanks again for all that have responded. Very much appreciate it.

    ------------------------------
    Michael Eisenbise
    Retired
    BP
    League City TX
    ------------------------------



  • 8.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 11-28-2018 09:24 PM
    Hello Michael,

    I agree with Kendall, usually following the process of the asset criticality analysis which it is done with a cross functional team. You are evaluating each asset under 6 different criteria such as Safety, Throughput, Quality, Customer service, Operating cost and Failure Frequency. Just keep in mind that you are assessing the effect of having a failure over each of the areas you are analyzing.
    As a result  following the Pareto 80/20 based on the criticality ranking you will realize that the percentage of the criticalical equipment will be around 20%+-5.

    I hope it helps

    Rene Davila


    ------------------------------
    Rene Davila
    Regional Maintenance Manager
    Omya Inc
    Broomfield CO
    ------------------------------



  • 9.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 11-28-2018 11:02 PM
    Rene,  am looking for information on a standard or other published document that states this number should be 15% to 20%.  Do you have any information on a standard?  Thanks for your response. Am looking for an answer to my originally posted question.

    ------------------------------
    Michael Eisenbise
    Retired
    BP
    League City TX
    ------------------------------



  • 10.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 11-28-2018 11:17 PM

    My experience in most of the global projects I have been involved in Africa, Europe, Asia pacific, middle east and north America throughout my over 26 years of M&R career is that we attempt to limit the percentage of critical asset to those 20% responsible for 80% of the plants reliability. The thought process is that the more equipment classified as critical assets the more difficult it will be to focus on the right equipment to improve reliability.

     

    Regards,

    Fortunatus (Fortune) Udegbue CMRP. PMP. ASQ-CRE.

    Principal Consultant

    T (Desk) +1 832 496 1455 (ext) 1

    Mobile     +1 281 806 2198           

    Fax          +1 281 315 8863

    E f.udegbue@fogaecelectrophysics.com

    W www.fogaecelectrophysics.com

    Fogaec Electrophysics Technologies LLC. (An infor Channel Partner)

    4606 FM 1960 Rd. West. STE-400. Houston, TX. 77069

    At FOGAEC: -We Turn your cost center to a profit center.

    Fogaec (002)                                                              ipnlogo

    th2QZKKFSZ

     






  • 11.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 11-28-2018 11:58 PM
    It is so good to hear from you again.  Long time no see.  Am looking for information on a standard or other published document that states this number should be 15% to 20%.  Do you have any information on a standard?  Thanks for your response. Am looking for an answer to my originally posted question.

    ------------------------------
    Michael Eisenbise
    Retired
    BP
    League City TX
    ------------------------------



  • 12.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 11-29-2018 07:31 AM
    Hello All

    I have never followed any standard definition on asset criticality, Critical assets are all these assets that directly impact on production, Critical asset are fundamental for the process to continue running without interruption.
    The number of critical assets is defined following your process architecture, for example in a frac job where you have:
    1 dry add blender.
    1 fluid blender
    1 electronic monitoring device
    2 high pressure pumps
    My critical assets will be the blenders, because the pumping job will be interrupted if any of these assets fails.

    Thanks

    ------------------------------
    Salvatore Colaiuda
    Business Engagement Manager
    ------------------------------



  • 13.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 11-29-2018 11:39 AM
    Salvatore,  Am looking for information on a standard or other published document that states this number should be 15% to 20%.  Do you have any information on a standard?  Thanks for your response. Am looking for an answer to my originally posted question.

    ------------------------------
    Michael Eisenbise
    Retired
    BP
    League City TX
    ------------------------------



  • 14.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 12-05-2018 08:11 PM
    Michael
    There is not standard that can tell you what percentage of equipment can be considered critical, the only way for you to define this kind of criterial is to have a detailed understanding of the process, you must know each stage of your process to understand the impact that can be caused to the process if a failure occure, there are some APIs that you can find in the internet but nothing to tell you specifically the percentage of equipment criticality to be defined.

    Thanks
    Salvatore C

    ------------------------------
    Salvatore Colaiuda
    Business Engagement Manager
    ------------------------------



  • 15.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 12-10-2018 03:07 PM
    Based on my experience, It's really important to define what criteria are you considering to define criticality.
    In the past, used to be considering impact or consequences of failure to value criticality on assets, based on this method some distributions for critical, semi-critical and non-critical assets were showed. However, when you criticality analysis is based on Risk (Probability x Consequence), one or several assets valued as critical risk shows a pending action by the organization to mitigate those risk (of course, that isnt correct). Now, the asset criticality list is dynamic (change with the time), it is not static.
    With that criterion, the best practice is that you don't have to maintain assets on critical risk. By the way, you can get a hierarchized assets list with most critical value, but this does not mean that its value is critical according to our risk criterion (risk matrix)
    As mentioned Suriya, standard Norsok Z008 (Criticality analysis for maintenance purposes), as well as API 580/581 (Risk Based Inspection) or API 691:2015 (Risk-Based Machinery Management) are standard very useful to define the new vision for criticality asset. In fact, the new RCM3 include risk criteria into the methodology.

    ------------------------------
    Gyogi Mitsuta
    Senior Reliability Consultant
    ------------------------------



  • 16.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 11-30-2018 07:15 AM

    This is only a reference that might be of some help. Mentions that Results of ACA should identify those assets that are with in top 20%

    https://www.lce.com/pdfs/Managing-Assets-by-Criticality-63.pdf

    Thanks

    ------------------------------
    Sundar Naranammalpuram P.
    Navi Mumbai
    Maharashtra
    India
    ------------------------------



  • 17.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 12-03-2018 10:44 AM

    According Ramesh Gulati (Maintenance and Reliability Best Practices) this should be less than 20% as we need to take care of all the assets cost effectively.  However, we don't have unlimited resources to do that. We need to do everything possible to ensure all critical assets are being maintained properly. Ramesh says that it has been found that on average 20% +/- 5% should be considered critical assets as a good practice.



    ------------------------------
    Vijay Mohan
    BP
    Rotterdam
    ------------------------------



  • 18.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 12-04-2018 06:42 AM
    Dear Colleagues
    Thereis NO standard like that . It varies to site to site, industry to industry and also depends on what the top management expect and the regulators require .

    There is Norsk Z008 a standard only for the methodology but not for the exact percentage of how much % it should be. The standard is specific to petroleum industry . For two same identical plant at different location the criticality ranking WILL be different when one is located in the US and another in Nigeria ( or India) as the risk tolerable levels are different based on the company's rules, government regulations, type of industry (chemical, petroleum, petrochemical, pharma, metals ), etc. .

    ------------------------------
    Suriya Narayanan CMRP, CRP, B.Eng
    Dar Al Riyadh
    Saudi Arabia
    Suriya.Narayanan@daralriyadh.com
    Ph +966 500184776
    ------------------------------



  • 19.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 12-11-2018 10:39 AM
    Do you have any evidence indicating that there is no standard?  Or, is this your opinion?  If you have evidence would you please share it.

    ------------------------------
    Michael Eisenbise
    Retired
    BP
    League City TX
    ------------------------------



  • 20.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 12-12-2018 01:31 PM
    The facility's critical equipment are defined in its' Safety Analysis Report (SAR, FSAR, UFSAR, etc.), which is a design basis document.  All nuclear power plants and nuclear research facilities have this type of report.

    Non-nuclear facilities typically do not have this type of report as part of their design basis documents.  As a result, other design documents must be used to identify the primary systems.  No national or international standard will dictate this number.  The percentages referred to in this discussion string are only rule-of-thumb numbers used to bid work.  Each facility will be unique in its' number of critical equipment, depending on its' design.

    I hope this helps.   ☺

    ------------------------------
    Marie Hirzel
    Consultant
    Watervliet MI
    ------------------------------



  • 21.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 12-12-2018 08:16 AM
    Michael

    I have never seen a standard that defines the distribution of assets by criticality, such as High 15%, Medium 30%, etc.. or any other distribution. As most of the other people in the discussion ​I always see typical distributions or recommended distributions. And, again as most of the people here, 15-20% critical is the "typical" number I see.
    I believe that at the end of the day this is all about prioritizing your resources (people, time, money, ) where they can provide you the greatest returns from the investment made..., considering here a broader definition of "return" beyond monetary.

    I hope it helps as one answer for your question
    Best Regards,

    ________________________________
    LUIZ FERNANDO S. VENTURA
    The Dow Chemical Company

    Global TES - Maintenance Expertise Center

    Reliability Engineering

    Phone: +1 (979) 238-3788
    Email: venturlf@dow.com

    Knowing is not enough; we must apply!
    Willing is not enough; we must do!





    ------------------------------
    Luiz Ventura
    Reliability Engineering Discipline Global Improvement Leader
    The Dow Chemical Company
    Pearland TX
    ------------------------------



  • 22.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 12-12-2018 09:37 AM
    Mr. Eisenbise,

    In order to answer this question we must first decide if we follow a risk type criticality (severity x frequency) or severity only criticality. I personally subscribe to the severity only as it tells us what the consequence of failure will be and, unless repurposed, should vary little over the life of the asset. Frequency, however, may and should change over time based on the competency of personnel, quality of procedures, variations in process, etc. The Norsok standard agrees with this but there are other standards which do advocate a risk based criticality.

    In a simple example to the above, let's suppose I provide surgical lighting systems. My company owns 30 of these assets all operating in similar operating rooms with minimal or no redundancy due to space. The criticality of these systems would likely be high due to the consequence of failure. Trying to say that 20% of these lights, providing a near similar function, are more critical than the others doesn't pass the red-face test. They are all equally critical and it would be unreasonable for any standard to guide us to lumping 15 or 20% into a bucket of "critical"

    If the purpose of the exercise is to guide us on priority we should instead temporarily assign a frequency of failure ranking to each asset to help guide us on where we might focus our training efforts, procedure efforts and the like. But as soon as we do these things the frequency, and thus risk, should be reduced on those assets.

    In my opinion, we should be cautious to equate criticality with risk of which the latter is more dynamic. If we are looking for a prioritization tool we can assign a temporary risk with the awareness that risk should change if the actions we implement are successful in reducing the frequency of occurrence. Based on this stance, it would be misguided for any standard to tell us that a certain percentage of assets should be more critical than others.

    ------------------------------
    Matthew Kern
    Houston TX
    ------------------------------



  • 23.  RE: What percentage of all assets, in a plant/site, should be classified as critical?

    Posted 12-19-2018 04:08 AM
    ​Hi all, I think it depends on how you define criticality. Could be production, safety, environment and so forth.

    For example, when we do an RCM we examine the functionality and sometimes away from the clear primary function and the usually clearly defined production / safety functions for secondary functions it isn't always so obvious, and some digging and thinking is required.

    The function and purpose within the operating context eventually does come out, what this has taught me is that there is always a purpose & reason for the equipment, otherwise it wouldn't be there, I just didn't know what it was.

    From that I would say that everything is critical (but just to different degrees and for different reasons) because it was designed, it was purchased, it was installed, it was part of CAPEX, It adds weight to the platform, it has operating cost, its part of OPEX, it will need to be deconstructed and removed, it has ABEX (abandonment cost) etc etc.

    Therefore, because it took some effort to get a piece of equipment to the platform or plant, I'd assume that it was necessary. So, in a sense everything is critical it's just that some are more critical than others.

    I'm wary of identifying a proportion that are "critical" because that then suggests the remaining equipment aren't and that can lead to across the board maintenance cuts by criticality rather than considering what needs to be done.

    If you find truly superfluous equipment because perhaps operations or context have changed then decommission or remove it. If its of such low criticality then question why it is there.

    And of course have a great festive break, but most importantly -  Stay Safe!

    ------------------------------
    Mike Hobbs
    Atkins Limited
    Aberdeen
    ------------------------------