All Member Open Forum

 View Only
Expand all | Collapse all

Asset Criticality Analysis

  • 1.  Asset Criticality Analysis

    Posted 09-08-2023 05:54 AM

    Good morning!

    I'm attempting my first asset criticality analysis and I have a couple questions...

    1.)  When we score each category, are we assuming that the worst, most plausible scenario occurs?  For example, safety:  we have rotogravure presses that have class 1 div 1 areas.  The worst case scenario would be an explosion that could result in death.

    2.)  I received an asset criticality analysis template from the Mobius Institute (iLearnReliability) and it multiplies the likelihood against the sum of all the scores (for example, safety, environmental, production, quality).  I'm confused by this since the likelihood of an explosion in a class 1 div 1 area (as mentioned above) should be low compared to a production loss of over $10k. I would think that we should assign a different likelihood for each category.

    Any help would be greatly appreciated!



    ------------------------------
    Andrew Palican
    Hewitt TX
    ------------------------------


  • 2.  RE: Asset Criticality Analysis

    Posted 09-11-2023 07:45 AM

    Andrew, email me and I can share some info.  agager@amgintlco.com

    A



    ------------------------------
    Andrew Gager CAMA, CMRP, CPIM, CRL, CSSGB
    CEO / President
    Wake Forest NC
    ------------------------------



  • 3.  RE: Asset Criticality Analysis

    Posted 09-11-2023 10:58 AM

    Always consider a SINGLE failure at the worst time.. high flow, high demand, bad weather etc..  Only consider a secondary failure with safety devices.  An example is a fire extinguisher, fire alarm, smoke detector, etc. has no consequence of failure unless there is a secondary failure...a fire.  I believe the same is true with your div 1 class 1 scenario.  The consequence only occurs if you have TWO failures....a bad atmosphere (high LEL) and an ignition source.  I would assume that you have gas detectors to warn you of a high LEL.



    ------------------------------
    [Jeffrey] [Sanford] [CMRP]
    [Senior Maintenance and Reliability Consultant]
    [Jacobs]
    Clover SC
    ------------------------------



  • 4.  RE: Asset Criticality Analysis

    Posted 09-16-2023 10:27 PM

    Thanks for your help, Jeffrey. 

    Just wanted to make sure that I understand.  For example, we had a guard on our rotogravure press that fell and rubbed on a rotating cylinder, which would have resulted in a spark and an explosion if the operator hadn't caught it.  Would the guard falling and causing a spark be considered the single failure?

    How would you rate the likelihood of this failure since it was the first time that it happened in over 20 years?



    ------------------------------
    Andrew Palican
    Hewitt TX
    ------------------------------



  • 5.  RE: Asset Criticality Analysis

    Posted 09-18-2023 09:12 AM

    I guess I don't understand the environment in the area.  If the area  ALWAYS has a high LEL, then you have bigger problems.  So, if the area is ventilated and typically does not have a high LEL, then you have two failures with the example you gave.  One, the guard failed, TWO the environment reached a high LEL.  I not sure what the failure would be for a high LEL environment.  Maybe failed ventilation,  broken pipe, sela failure, etc..

    As far as likelihood, I would say it is an unlikely failure mode...based on the 20 year time frame.

    I have seen typical likelihood of failure have two categories or more.   The most common is asset condition.  The theory being that if an asset is in bad condition, it is more likely to fail.  The other very common category is O&M Protocols.   This relates to how robust you PM program is with both detailed PMS and compliance.



    ------------------------------
    [Jeffrey] [Sanford] [CMRP]
    [Senior Maintenance and Reliability Consultant]
    [Jacobs]
    Clover SC
    ------------------------------



  • 6.  RE: Asset Criticality Analysis

    Posted 09-19-2023 01:48 PM

    Andrew, 

    I see some great guidance from the others who have replied.  As it pertains to the failure of the guard, remember to use the "five why's" in your failure analysis.  Where your criticality analysis is based on your knowledge of the process, the introduction of failure mechanisms that are considered "off normal" might lead you to other practice improvements to eliminate such mechanisms (e.g., maintenance standards, post-maintenance inspections, check-offs, etc.).

    All the best,



    ------------------------------
    Terence Easterwood
    Owner/President
    TMEI Services LLC
    Bryan TX
    ------------------------------



  • 7.  RE: Asset Criticality Analysis

    Posted 09-11-2023 12:25 PM

    Andrew,

    I have worked with a number of clients to establish an asset criticality assessment (ACA) process.  It's important to remember that the ACA process is intended to help you optimize your resource investment in improving reliability.  It is meant to identify the most "critical" systems and assets and the least critical systems and assets.  Knowing if an asset is number 12 or number 10 on that list isn't the goal.  Therefore a consistent, fact based, ranking method, that can be performed consistently and cost effectively, by different teams, is what is important. 

    As you, and others, point out, you need to determine the likelihood of an event (i.e. asset failure caused event) and the impact of that event.  As you note, that is generally done for multiple categories and one event may have varying consequences for the various categories.  This leads to a choice of how to treat the various "risk" results by system and by asset.  The two methods that we used were to either use the highest single risk (i.e. probability X consequence) or to use the sum of the top risks by category.  The ranked order of the risk results are very dependent on how you choose to quantify your consequences of an asset failure.  How does a serious personnel injury event compare to a day of lost production?  All of that said, if you have a well documented definition and process, you can present and defend your results to your stakeholders with confidence.  Debate can then focus on how you quantified the risks.  If that changes, you can quickly update your rankings.  Even when that happens, the rank order will likely not change dramatically. 

    I know it's a long answer to a short question. 

    Regards,



    ------------------------------
    Roger Shaw
    APM Consultant
    Salem CT
    Roger_Shaw@comcast.net
    ------------------------------



  • 8.  RE: Asset Criticality Analysis

    Posted 09-16-2023 10:46 PM

    Thanks for your help, I appreciate the "long answer".  This is the risk matrix that we developed.  We are only defining the consequence and scaling it based on what we felt was more important. 

    Forgive my ignorance, but I'm still confused about how to score the likelihood.  For example, if we safety=4 (may result in death) and quality=4, then how should I score the likelihood of the asset failure?  Is it based on how often the asset fails (MTBF.  Note:  we didn't include MTBF in the matrix since we just got a new CMMS and do not have that data) or the likelihood that the failure may result in death (due to the safety score) and/or the likelihood that it may result in a significant quality defect?



    ------------------------------
    Andrew Palican
    Hewitt TX
    ------------------------------



  • 9.  RE: Asset Criticality Analysis

    Posted 09-23-2023 03:48 PM
    Andrew,
     
    I think that there is one more layer needed for your Risk Matrix.  It may seem to complicate things, but I believe that it will make the decision process easier for the team doing the assessment.  In the work I have been involved in, each of your "Criticality Factor" categories would have its own 5 X 5 matrix.  Your existing set of 5 rows of "consequence descriptions" would be, in essence, the descriptions that would go with the 0 to 4 boxes at the top of each of the category matrices.    In that way, when the team is considering Safety they would be thinking about "the event" or failure that would lead to a safety consequence.  The likelihood would be stated as a numeric value where you currently list the scale factor.  Then the product of the likelihood and the "Consequence of Assets Failure" values could be listed in the matrix "boxes".  Once the team selects the likelihood and the consequence values, the "Risk" related to that Category would be the value at the intersection of the Row and Column selected.  There can be more discussion about the scaling of the likelihood and / or the Consequence to obtain a range of 0 to "some large number" for the Category Risk.  You could choose to have them be linear, log or some other set of selected values that makes sense to you and your stakeholders.  After you have done the assessment for all five categories you can either take their sum or use the highest value, or devise some other algorithm, for each asset as their Asset Criticality.
     
    Regarding the likelihood, whether you have a new or old CMMS data set, unless your organization has been incredibly good about recording asset failure details in a clear and unmistakable way (which is incredibly rare), a reliable failure rate or MTBF is challenging.  In most cases you'll likely be dealing with the experienced team's "reasonable approximation" of how long it takes an asset of the type and usage in question to reach the point of failure being considered.  This goes to the point of whether you choose to use a linear scale or a log scale or something else.  Some asset failures of concern, say filter clogging or pump impeller wear for very abrasive materials, could be of the order of months.  Some safety barrier degradation, with very serious consequences, could be a one in 10,000 or 100,000 operating years.  
     
    In the end, you are arriving at a structured quantitative determination that, in truth, is a bit qualitative.  If your team(s) do it consistently you will have the best means practical to compare your assets in terms of risk to help decide where to allocate the available resources to maintain the best reliability you can. 
     
    Best regards,
     
    Roger Shaw
    H - 860-383-2526
    M - 860-961-0763





  • 10.  RE: Asset Criticality Analysis

    Posted 09-12-2023 07:43 AM

    There are different ways to approach this as you have seen. I agree that as long as you follow typical conventions and have a well documented process you will get good results you can stand by. 

    1.) Single point failure is important to define and consider under this analysis. If the asset in question could possibly result in a hidden failure (the smoke alarm example) then I have marked as so and treated these items separately. We perform PHA and ACA analysis. Where the PHA is concerning the worst case scenario for process safety consideration. For our ACA more focused on reliability, I look at the most likely consequence of failure at the likely first detection.  I typically would not focus on the worst case imaginable for my ACA. In your example of a class 1 div 1 area. It may be reasonable to expect an explosion resulting in death as I don't know the process.

    2.) You should be considering the likelihood of the asset failure. The asset fails when the asset fails. The safety consequence is very high, and that will be reflected in the final results. The likelihood that the asset won't perform it's intended function is improved by different actions then the actions to reduce the consequence. There may be exceptions but I believe that is typically how it is treated. 



    ------------------------------
    Jesse Day
    Sr. Reliability Engineer
    Wacker Polysilicon
    Charleston TN
    ------------------------------



  • 11.  RE: Asset Criticality Analysis

    Posted 09-16-2023 10:50 PM
      |   view attached

    Thanks for your help, Jesse.  I replied to a couple of the other messages and would love your feedback as well...

    For example, we had a guard on our rotogravure press that fell and rubbed on a rotating cylinder, which would have resulted in a spark and an explosion if the operator hadn't caught it.  Would the guard falling and causing a spark be considered the single failure?  How would you rate the likelihood of this failure since it was the first time that it happened in over 20 years?

    Forgive my ignorance, but I'm still confused about how to score the likelihood.  For example, if we safety=4 (may result in death) and quality=4, then how should I score the likelihood of the asset failure?  Is it based on how often the asset fails (MTBF.  Note:  we didn't include MTBF in the matrix since we just got a new CMMS and do not have that data) or the likelihood that the failure may result in death (due to the safety score) and/or the likelihood that it may result in a significant quality defect?  (This is the risk matrix that we developed.  We are only defining the consequence and scaling it based on what we felt was more important)



    ------------------------------
    Andrew Palican
    Hewitt TX
    ------------------------------



  • 12.  RE: Asset Criticality Analysis

    Posted 09-18-2023 05:43 PM

    Hi Andrew, 

    As previously mentioned it seems you're trying to create a Risk Matrix rather than a criticality matrix. It is highly advisable to have each concept clear.

    Being that said and specifically answering your questions:

    1- In the context of risk matrix, your example: "we had a guard on our rotogravure press that fell and rubbed on a rotating cylinder, which would have resulted in a spark and an explosion if the operator hadn't caught it.  Would the guard falling and causing a spark be considered the single failure?" Yes, this is a potential failure and needs to be assessed as such.

    2- Your second question, "How would you rate the likelihood of this failure since it was the first time that it happened in over 20 years?". Typically you will use historical data within the organization to properly assess the frequency criteria. If not available I can suggest using a maintenance and reliability database for the industry (similar to what is OREDA for O&G, I've used it in the past for this type of exercise). Finally if none of those are available for you, subject matter experts (SME) feedback is also a valid alternative; SME can internal or external to the organization. Last, but not least, you need to consider the largest amount of past events this type to best assess it. For your specific example, yes perhaps you might think this event is "very unlikely to happen" category because has never happened in your organization, but what about in similar companies using the same equipment? what about in other companies with similar applications? what about within the industry? The more information you have the best assessment you can do.

    You should ultimately get a Risk Matrix similar to OREDA's (see attachment as example).

    Last two comments:

    1- For asset criticality I recommend you checking both the article shared by Jesse and the spreadsheet shared by Jeremie. They both nail it in terms of concept and application.

    2- The Risk Matrix creation exercise, from my experience, is a joint effort from not only M&R but also EHS, Production, Finance and Management. I mention this because the resulting risk matrix must be aligned with each department's metrics, goals and criteria. I strongly recommend get those department involved into the exercise so that the resulting document has not only an enriched discussion but also a smoother application.

    I hope it helps.

    Risk Matrix Example

    Rafael Cardenas, CMRP
    Reliability Engineer
    Stemcell Technologies
    Vancouver, BC



    ------------------------------
    Osmel Cardenas Peñaranda
    Sr.
    STEMCELL Technologies Inc.
    Vancouver BC
    ------------------------------



  • 13.  RE: Asset Criticality Analysis

    Posted 09-12-2023 11:26 AM

    Consider looking at TRIAD Relialytics

    djohnston@triadunlimited.com

    https://www.triadunlimited.com/index.html



    ------------------------------
    Daniel Stoye
    Maintenance and Reliability Technical Advisor
    Pioneer Natural Resources
    Midland TX
    ------------------------------



  • 14.  RE: Asset Criticality Analysis

    Posted 09-13-2023 02:31 PM

    Andrew,

    You've received some solid guidance from the other posters, but I wanted to point out an important aspect of your question that is a major factor in how you can use the results of your analysis.

    The analysis tool you're using is asking for both the consequences and the probability of a failure event for each asset. (Consequence of failure) * (Probability of failure) is actually the formula for risk, not criticality. While you definitely want to base your asset decision-making around the risk of failure, it's important to keep in mind that the probability of failure will change whenever the condition of the asset changes (e.g. maintenance intervention, degradation from use, asset replacement). The consequence of failure will only change when the asset function changes (e.g. system re-design).

    Therefore, I prefer to keep asset criticality and asset risk as separate ideas and values. Changes in asset criticality (consequence of failure) can be managed through your Management of Change process. Changes in asset risk (consequence * probability) requires more dynamic management, with inputs from on-line monitoring, inspection results, and work orders completed.

    Feel free to message me if you'd like to discuss further.

    ~~~~



    ------------------------------
    Brian Kaiser
    ISO 55000 Subject Matter Expert
    Winter Springs, FL United States
    ------------------------------



  • 15.  RE: Asset Criticality Analysis

    Posted 09-13-2023 04:07 PM

    Great point Brian,

    I recently came across this important concept in an article that talks about the definitions of Risk vs Criticality.

    https://www.ge.com/digital/blog/avoid-common-mistake-criticality-and-risk-are-not-same 



    ------------------------------
    Jesse Day
    Sr. Reliability Engineer
    Wacker Polysilicon
    Charleston TN
    ------------------------------



  • 16.  RE: Asset Criticality Analysis

    Posted 09-14-2023 08:22 AM
      |   view attached

    I was working with a client a while back that had a very robust criticality matrix that he graciously gave me permission to share with folks. The parameters can obviously be catered to your specific facility/needs, but it is a fantastic start in my opinion.



    ------------------------------
    Jeremie Edwards MLA III , MLT II
    Technical Consultant
    Noria Corp
    Tulsa OK
    ------------------------------

    Attachment(s)