Asset Failure Consequences and  Risks

Asset Failure Consequences
"Correcting unReliability is the business of the Maintenance Department. Creating Reliability is a company-wide concern." - Terrence O'Hanlon

As we refine our approaches and activities around Reliability Strategy Development [RSD from the Reliability Engineering for Maintenance from Uptime Elements Reliability and Asset Management System], we strive to focus on things that "make a difference" like delivering the highest value [ROI] as well as being informed as to the consequences and risk from asset failure to make decision around reliability strategy improvement candidates, Preventive Maintenance plans and tasks, [Hidden] Failure Finding and Run-to-Failure decisions.


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Typically - the consequences around asset failure fall into these six categories.


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Safety


Research from Exxon Mobil shows that >50% of safety incidents take place during abnormal operations
[shutdown, corrective, start-up]

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DuPont reported research that indicated that the most likely person to be injured on an industrial site is:

  • A maintenance technician
  • With less than 2 years experience
  • Performing reactive work

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Environmental

ESG performance is now a reality. A reliable plant is an environmentally responsible plant. An unreliable plant…[see below]







Production Loss

Unplanned downtime in manufacturing can cost a company as much as $260,000 an hour! Do you know the true cost of downtime?

Manage the losses!
Ron More, Author, "Making Common Sense, Common Practice" and "What Tool? When?"



Asset utilization (AU) and overall equipment effectiveness (OEE)Ron Moore

Losses from ideal productionRon Moore


Repair Cost

Unplanned asset failures typically cost much more to restore. In any case, it is important to have a strategy for determining repair versus replace.

Randy Riddell


Culture

Leadership creates the culture. Culture delivers the performance.

The frontline workforce judges top management through their actions more than their words. Asset failures are also strong cultural messages.


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Recruiting and Retention


Top reliability leaders are hard to find and they demand a proactive work culture that stands for safety, sustainability and success. Is your Reliability Journey the kind to attract top reliability talent?


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One of the success factors we see in the reliability and asset management programs at the world's best run companies is a well-understood, highly-utilized, transparent, decision-making matrix to guide team members into using the consideration of asset failure and risk.

You can find me at LinkedIn if you want to share your ideas on asset failure consequences and risk.

Terrence O'Hanlon