Risk, Remaining Useful Life, History of Maintenance and Repair, and Risk Register. March 21, 2018 Ohio AWWA AM Committee Workshop

Transcription

1 Risk, Remaining Useful Life, History of Maintenance and Repair, and Risk Register March 21, 2018 Ohio AWWA AM Committee Workshop

2 What will you learn from this presentation? Discussion of Draft Rule Requirements related to (B)(9)(b-e) Overview of Rule elements How do these elements fit into an overall AM program? Why are these pieces important? How will you use them?

3 Draft Rule Requirements Discussion of Draft Rule Requirements (B)(9)(b)- History of Maintenance and Repair (B)(9)(c) Remaining Useful Life (B)(9)(d)- Risk (9)(d)(i)- Probability of Failure (9)(d)(ii)- Consequence of Failure (B)(9)(e) Risk Ranking These elements are foundational to ANY asset management program and final rules will not impact what we are planning to discuss today.

4 DRAFT Rule Text Here is the excerpt from DRAFT (B)(9):

5 History of Maintenance and Repair Your staff are the best resource for truly understanding the state of your assets! Conduct interviews with staff and find out what they know about your asset operations and maintenance history. Review work order history to see trends on assets.

6 Key Definitions Useful Life The average amount of time in years that a new system component is estimated to function when installed. Probability of Failure (PoF) The chance an asset will fail according to its percent of effective life consumed and redundancy. Consequence of Failure (CoF) The real or hypothetical effects associated with the failure of an asset.

7 Remaining Useful Life (RUL) Industry standard useful life tables exist for asset classes, but they are just a starting point. RUL is calculated based on the following: Age of asset (date of install) and current year RUL adjustments that fit how your organization operates are appropriate to give you the right values for decision making. Operational history and environment Organizational maintenance practices Asset condition RUL is another component that you can use to rank assets in the risk process.

8 We Make Decisions Based on Risk PROBABILITY OF FAILURE CONSEQUENCE OF FAILURE

9 What Assets Keep You Awake at Night?

10 Risk Process Components Probability of Failure x Consequence of Failure = Risk Score Failure Mode (POF) Mortality Level of Service Capacity Consequence Economic Social / Safety Environmental Efficiency 10

11 How to Determine Risk Step 1- determine the PoF and CoF criteria that matters to your organization. Step 2- define criteria and scoring ranges for consistent scoring and standardization. Weighting of criteria can be useful to the process. Step 3- apply the criteria and calculate the initial CoF and PoF scores to your assets. Step 4- verify and adjust scores with condition assessment, maintenance history, and staff perspective. Step 5- compile a list of assets based on calculated risk.

12 Example PoF Criteria- Vertical Assets Criteria Description 1 - Low 3 - Moderate 5 - High Weight Remaining useful life Obsolescence Application environment Failure history PM history Complexity Redundancy Number of years an asset has remaining before it no longer provides the required level of service Assets that are becoming out of date, and are difficult to service/maintain Application environment may contribute to failure (sunlight, corrosive, temp, moisture, particulates, abrasive) Total number of Emergency and Corrective Maintenance (EM and CM) work orders in the past 2 years PM compliance percentage (PM scheduled and completed) over the past 2 years Number of points of failure within the asset/system Addition of equipment above what is required for optimal performance New or like new Parts readily available No environmental impact Near 50% of useful life Parts available within 1 week Moderate application environment End of useful life 20 No parts available 15 Harsh environment 0 Up to 2 More than % 50% 0% 15 Simple Full redundancy for peak conditions Moderately complex system with few points of failure Full redundancy under average conditions Highly complex with multiple points of failure No redundancy 5

13 Example CoF Criteria- Vertical Assets Criteria Definition 1 - Low 3 - Moderate 5 - High Weight Public & Employee Safety Failures that may result in injury to citizens or employees. No injury Minor injury Serious injury or death 20 Regulatory Compliance Failures that may result in violation of environmental regulatory requirements. No violation Potential violation Violation(s) 25 Cost of Failure Total cost to repair or replace assets and return to pre-failure conditions. Cost handled through cost center budget Cost handled through Operations budget Cost requires Board approval 20 System Disruption Failures that may impact upstream or downstream system(s). Single system disruption Adjacent systems disruption Facility-wide disruption 10 Public Impact Failures may impact multiple customers and/or involve media coverage. Few customers and no media coverage Many customers and no media coverage Many customers and media coverage 20 Time to Repair Time to repair or replace assets and return to prefailure conditions. Less than 1 week Less than 3 months Greater than 3 months 5

14 1 Linear Asset PoF and CoF Criteria PoF Criteria: Size, Material, Depth, Soil Conditions CoF Criteria: Number of customers served, capacity Regulatory non-compliance, environmental impact, public image Type of road (heavy traffic, moderate traffic, etc.) Under buildings, railways, etc. Serving business districts, hospitals, industrial sites, etc.

15 1 Linear Asset Risk Designations Class A Consequence of failure very high Social costs and potential health hazards Class B Less critical Preemptive action still desirable Class C Not necessarily cost effective to avoid collapse

16 Now What Do You Do? Set up a spreadsheet so you can track the assets, criteria, scores, and weights.

17 Risk Register What is a Risk Register? Summary of assets ranked on a risk basis. Tool that YOU use to make decisions Refine maintenance practices Plan your CIP Identify immediate O&M needs Discuss needs with your decision makers and customers and present those needs in a standardized and defensible way.

18 How do all of these elements fit together? These elements are foundational to ANY asset management program. These elements are interdependent. CoF and PoF are needed to calculate Risk. RUL and O&M can be used to calibrate Risk Risk is used to prioritize other AM elements like maintenance, CIP planning, operations, and level of service. REMEMBER You are already doing many of these elements, but you may not have a formalized process or be calling the elements what we discussed. Don t get caught up in the terminology. Build upon what you already have and start documenting.

19 We Make Decisions Based on Risk High Probability of Asset Failure Strategy: Reactive Strategies Operate to failure Strategy: Mix of reactive and proactive Strategy: Plan for asset renewal and/or risk mitigation Strategy: Proactive condition and/or performance monitoring Low Consequence of Asset Failure High

20 Questions