Whole of life

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Applying whole of life principles in physical asset management. Applications and concepts.

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Whole of life

  1. 1. Whole-of-Life Asset Management Integrating financial and physical asset management Daryl Mather [email_address]
  2. 2. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today [email_address]
  3. 3. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today Routine maintenance forecast from CMMS / SAP / EAM… [email_address]
  4. 4. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today Routine maintenance forecast from CMMS / SAP / EAM… But where does it come from…? <ul><li>Routine maintenance forecast </li></ul>[email_address]
  5. 5. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today But where does it come from…? Manufacturers Experience ? + Maybe… <ul><li>Routine maintenance forecast </li></ul>[email_address]
  6. 6. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today But where does it come from…? Manufacturers Experience ? + What’s missing? <ul><li>Routine maintenance forecast </li></ul>[email_address]
  7. 7. Where does the information come from? But where does it come from…? Manufacturers Experience ? + What’s missing? Future Present Past Failure mode identification <ul><li>Routine maintenance forecast </li></ul>[email_address]
  8. 8. Where does the information come from? But where does it come from…? Manufacturers Experience ? + What’s missing? Future Present Past <ul><li>Historic information </li></ul><ul><li>Failure data </li></ul><ul><li>Incident reports </li></ul><ul><li>Operational usage </li></ul><ul><li>Operator logs </li></ul><ul><li>Maintenance history </li></ul><ul><li>Routine maintenance forecast </li></ul>
  9. 9. Where does the information come from? But where does it come from…? Manufacturers Experience ? + What’s missing? Future Present Past <ul><li>Historic information </li></ul><ul><li>Failure data </li></ul><ul><li>Incident reports </li></ul><ul><li>Operational usage </li></ul><ul><li>Operator logs </li></ul><ul><li>Maintenance history </li></ul><ul><li>Routine maintenance </li></ul><ul><li>Operations procedures </li></ul><ul><li>Routine maintenance forecast </li></ul>
  10. 10. Where does the information come from? But where does it come from…? Manufacturers Experience ? + What’s missing? Future Present Past <ul><li>Historic information </li></ul><ul><li>Failure data </li></ul><ul><li>Incident reports </li></ul><ul><li>Operational usage </li></ul><ul><li>Operator logs </li></ul><ul><li>Maintenance history </li></ul><ul><li>Routine maintenance </li></ul><ul><li>Operations procedures </li></ul><ul><li>Engineering judgement </li></ul><ul><li>Predictive reliability </li></ul><ul><li>Predictive maintenance </li></ul><ul><li>Routine maintenance forecast </li></ul>
  11. 11. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today What’s missing? <ul><li>Routine maintenance forecast </li></ul>Ties to performance and risk…! [email_address]
  12. 12. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today What’s missing? <ul><li>Routine maintenance forecast </li></ul>Ties to performance and risk…! What’s next? [email_address]
  13. 13. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today What’s missing? <ul><li>Routine maintenance forecast </li></ul>Ties to performance and risk…! What’s next? [email_address]
  14. 14. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today <ul><li>Routine maintenance forecast </li></ul><ul><li>Capital maintenance </li></ul>Capital Maintenance spending on refurbishment and replacement… [email_address]
  15. 15. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today <ul><li>Routine maintenance forecast </li></ul><ul><li>Capital maintenance </li></ul><ul><li>Manufacturers guides </li></ul><ul><li>Vendors / Contractors assumptions </li></ul><ul><li>Financial accounting depreciation </li></ul>[email_address]
  16. 16. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today <ul><li>Routine maintenance forecast </li></ul><ul><li>Capital maintenance </li></ul><ul><li>Manufacturers guides </li></ul><ul><li>Vendors / Contractors assumptions </li></ul><ul><li>Financial accounting depreciation </li></ul><ul><li>Conservative (Don’t get sued) </li></ul><ul><li>Commercial instead of practical </li></ul><ul><li>Irrelevance of depreciation on physical life </li></ul>[email_address]
  17. 17. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today <ul><li>Routine maintenance forecast </li></ul><ul><li>Capital maintenance </li></ul>What’s next? [email_address]
  18. 18. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today <ul><li>Routine maintenance forecast </li></ul><ul><li>Capital maintenance </li></ul><ul><li>Corrective maintenance </li></ul>What’s next? Corrective maintenance…. [email_address]
  19. 19. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today <ul><li>Routine maintenance forecast </li></ul><ul><li>Capital maintenance </li></ul><ul><li>Corrective maintenance </li></ul>“ So..ummm… the average of (say) the last 5 years. Ummm… then minus 10% (because we’re going to get better)… and then… [email_address]
  20. 20. Where does the information come from? YR1 YR2 YR3 YR4 YR5 Today <ul><li>Routine maintenance forecast </li></ul><ul><li>Capital maintenance </li></ul><ul><li>Corrective maintenance </li></ul>“ So..ummm… the average of (say) the last 5 years. Ummm… then minus 10% (because we’re going to get better)… and then… Garbage !! [email_address]
  21. 21. The problem is obvious… <ul><li>Unreliable routine maintenance strategies </li></ul><ul><ul><li>of dubious origins </li></ul></ul><ul><ul><li>with no ties to performance and risk </li></ul></ul>[email_address]
  22. 22. The problem is obvious… <ul><li>Unreliable routine maintenance strategies </li></ul><ul><ul><li>of dubious origins, </li></ul></ul><ul><ul><li>with little ties to performance and risk, and </li></ul></ul><ul><li>capital maintenance plans unrelated to the real world… and </li></ul>[email_address]
  23. 23. The problem is obvious… <ul><li>Unreliable routine maintenance strategies </li></ul><ul><ul><li>of dubious origins, </li></ul></ul><ul><ul><li>with little ties to performance and risk, and </li></ul></ul><ul><li>capital maintenance plans unrelated to the real world… and </li></ul><ul><li>corrective maintenance is a guess …. </li></ul>[email_address]
  24. 24. The problem is obvious… <ul><li>Unreliable routine maintenance strategies </li></ul><ul><ul><li>of dubious origins, </li></ul></ul><ul><ul><li>with little ties to performance and risk, and </li></ul></ul><ul><li>capital maintenance plans unrelated to the real world… and </li></ul><ul><li>corrective maintenance is a guess …. </li></ul>That’s a bit frightening isn't it? [email_address]
  25. 25. The problem is obvious…(cont’d) “ One of the most important contributions of the Reliability-Centered Maintenance Program is its explicit recognition that certain types of information … are, in principle ,as well as in practice, unobtainable .” Mathematical Aspects of Reliability Centered Maintenance H.L. Resnikoff My experience (not a fact, my personal anecdote) is that 70% of information for reliability analyses comes from knowledge – not from data!
  26. 26. The problem is obvious…(cont’d) “ This means … the policy must be designed without using experiential data which will arise from the failures the policy is meant to avoid.” Mathematical Aspects of Reliability Centered Maintenance H.L. Resnikoff [email_address]
  27. 27. The problem is obvious…(cont’d) Great…??!!??? Now what ! [email_address]
  28. 28. The problem is obvious…(cont’d) Great…??!!??? Now what ! <ul><li>Codify knowledge into usable data, and </li></ul><ul><li>Capture failure data proactively (Without crashing a few more assets) </li></ul>[email_address]
  29. 29. Wait…!! <ul><li>Is this even worth it? </li></ul>Goal – High confidence decisions over NPV [email_address] YR1 YR2 YR3 YR4 YR5 Today
  30. 30. Wait…!! <ul><li>Is this even worth it? </li></ul>Goal – High confidence decisions over NPV <ul><li>Result ( $$ ) </li></ul><ul><li>Lower cost of capital </li></ul><ul><li>Greater access to finance </li></ul><ul><li>Economic decision making over life </li></ul>[email_address] YR1 YR2 YR3 YR4 YR5 Today
  31. 31. Codify Knowledge Routine Corrective Preventive Restoration Preventive Replacement Predictive Maintenance Detective Maintenance [email_address]
  32. 32. Codify Knowledge Routine Corrective Preventive Restoration Preventive Replacement Predic tive Maintenance Run to Fail Detective Maintenance Predic ted Maintenance Detec ted Maintenance [email_address]
  33. 33. 8 types of maintenance [email_address] Unplanned / Reactive Reactive Reactive Planned / Proactive Corrective Run to failure Planned / Proactive Corrective Detec ted Maintenance Planned / Proactive Routine Detec tive Maintenance Planned / Proactive Routine Preven tive Replacement Planned / Proactive Routine Preven tive Restoration Planned / Proactive Corrective Predic ted Maintenance Planned / Proactive Routine Predic tive Maintenance Mode Maintenance Type Maintenance Task
  34. 34. Impacts of 8 maintenance types High confidence Net Present Value decisions on physical assets Framework for proactive data collection Ability to use techniques for higher confidence decisions Codifying Knowledge to data [email_address] Analysis (RCM / RBI / SIL etc) CMMS Higher technologies Higher confidence
  35. 35. Impacts of 8 maintenance types High confidence Net Present Value decisions on physical assets Framework for proactive data collection Ability to use techniques for higher confidence decisions Codifying Knowledge to data A process that occurs naturally , through accurate failure management strategies. [email_address]
  36. 36. Whole-of-Life Asset Management By Daryl Mather [email_address]

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