Asset Criticality

Asset criticality assessments evaluate the importance of assets within an organization to determine their impact on operations if they fail. This process involves identifying maintenance significant assets, assessing their function, and analyzing the credible risks and consequences of their failure. It helps prioritize maintenance strategy, and investment, ensuring that critical assets receive the appropriate attention and resources. Its important that a consistent philosophy is applied, and that it is being updated when the plant changes, or new lessons are learned. This process supports strategic decision-making and helps in maintaining business continuity, ensuring that the most critical assets are given the necessary attention and resources to perform reliably

Our Approach

The Janus approach works to align to your business risk tolerance and your asset prioritization philosophy. However, our experience as operators has lead us to strongly believe in a balanced approach to this analysis process. It must provide enough information to enable risk based decisions on equipment, but not overcomplicate the analysis such that it becomes too complex to conduct or interpret. The table above outlines what we have seen to work best in asset intensive industries. It is a simple four level approach with the top criticality having the distinction between a safety consequence versus a business consequence. This allows the company to ensure that financial consequences do not come in the way of ensuring the operability of this critical equipment. The analysis is qualitative in nature and takes input from process hazard studies. Criticality threshold levels should be specific to your businesses risk tolerance, and done in such a way that a meaningful distribution of criticalities are assigned. A good rule of thumb is to have 15% or less of assets as critical, around 15% of assets as high, 30% of assets as moderate and 40% as low. Janus can work with you to establish the best approach for you and do all the leg work to facilitate an efficient and streamlined review with your key staff.

Key Inputs

Deliverables Unlocked

Value Earned

The value of asset criticality assessments lies in their ability to enhance organizational efficiency, improve safety, risk management, and resource allocation. By systematically identifying and evaluating the importance of each asset, organizations can prioritize maintenance and investment efforts, ensuring that critical assets receive the necessary attention to prevent failures, minimize downtime and ensure safety. Risk based decision making is required to ensure your resources are doing the right work at the right time.

Although risk mitigation is the key driver for criticality assessments, another key value driver is ensuring you aren’t wasting money on equipment with little impact. applying resources to assets that only serve to distract from what is meaningful in your value chain.