Delivering

Asset value

y
Stud
Case ded
u
Incl

A Framework for Asset

Reliability & Integrity Management
contents
1 Reliability and integrity; it’s a balancing act?! 3

2 Definition of Asset Reliability & Integrity Management 4

3 Asset Reliability & Integrity Management and Asset Value 5

4 Asset Reliability & Integrity Management Model 6

4.1 Closing the loop; overview of processes 7

4.2 Maintenance workflow 9

5 Developing an Asset Reliability & Integrity Management programme 9

5.1 Direct & Design 9

5.1.1 Supporting software tools 11

5.1.2 Organisation role model 11

5.2 Do: establishing a company-wide focus on Asset Reliability 12

5.3 Measure & Adjust: performance management 12

6 Asset Reliability & Integrity Management delivering asset value 13

6.1 Asset output 13

6.2 Asset input 13

6.3 Asset integrity and compliance 14

6.4 Asset Lifetime 14

6.5 Costs 14

6.6 Innovation and improvement 14

7 Asset Reliability & Integrity Management and Asset Management 15

8 Case study 18

9 References 18

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reliability
and integrity
1 Reliability and integrity; to set the objectives that they can all agree to.
it’s a balancing act?! Then, the next challenge will be implementation
and alignment between the different disciplines,
which – all together – will have an impact on
Put a business manager, cost controller and risk meeting the ultimo asset objectives.
manager in the same room as an industrial asset
owner and ask them to define the optimum We see many asset owners struggle with
objectives for their complex capital assets. You can challenges like how to optimise the performance of
expect a lively discussion about how to balance their assets in a sustainable way, how to comply
asset output objectives against compliancy with current regulations, which data to capture to
requirements and total cost of ownership. The predict asset failures, how to improve their
discussion will become even more heated if we maintenance strategy by closing the loop, and so
take the total expected asset lifetime into account, on. We found the answers by designing a ‘control
together with the effects of corporate strategy. tower’ approach to connect the essential elements
of availability, reliability and integrity. This white
But… for the sake of the story, let’s assume these paper describes the integrated Asset Reliability &
people are professionals and they find a smart way Integrity Management (‘ARIM’) framework.

ASSET VALUES ARIM model

Business
re
Busin
ess drivers High level
u con
e fut tin Compliance &
th uit Multilevel risk
ld
assessments
i

y
Bu

Innovation
and Compliance
improvement & integrity
Planning &
Scheduling
Sustainability

Deliver y

Asset life AM Asset output

time Goals
Adjust mitigation Definition of
Adjust Execute
strategies task Asset Maintenance
mitigation
Asset strategies
Cost
input
Op

ra
tio
e

y Efficiency
n al e i l it
it ab analysis
xcel
lence Prof

Effectiveness
analysis
CAPABILITIES

Knowledge Management
Best Practise: knowledge & skills APPROACH

Change Management
Culture: working together, Direct Design Do
leadership, principles, behaviour (policy & strategy) (plan & organize) (implement & operate)

Project Management
Sharing goals: common vision,
mission, goals Measure and adjust

Figure 1: Stork Asset Reliability & Integrity Management Framework

Asset Management in Industrial Environments 3
3
 This framework has been developed by Stork and • Awareness of their cost of ownership position, in
implemented successfully for different asset owners. which the effects of downtime and opportunity
This field-proven framework integrates the reliability loss are weighed against maintenance costs
process with the maintenance process, and enables • A clear audit trail, from risk assessment up to the
us to define risk-based maintenance strategies and effectiveness of mitigating actions
tasks, proper and timely execution of the maintenance • Compliance with the applicable standards and
tasks, evaluation of the effectiveness of the strategy, regulations
and adjustment of the strategies and tasks. ARIM is • Managed risk profile of the asset in line of sight
based on the RIMAP (Risk Based Inspection And • Full focus on added value tasks in the
Maintenance Procedures for European Industries). maintenance process, eliminating non value
adding maintenance activities
The scope of ARIM can cover many different assets: • Structured workflows in software tools like
static, rotating, electrical, automation, machinery CMMS (Computerised Maintenance
and supporting systems, with different levels of Management System) and Asset Performance
complexity and risk profiles. Because of this Management systems like Meridium.
inherent complexity, maintenance of these assets These benefits are also shown in the case study
involves multiple disciplines – either in-house or which is described in this paper.
using contracted labour.
Asset Reliability & Integrity Management (ARIM)
A pragmatic approach is described on how to has become an important cornerstone of Asset
implement ARIM in an effective and sustainable Management for successful delivery of Asset Value.
way. This approach is detailed in an ARIM Asset Management is defined as the optimum way
Programme. Key success factors in an ARIM to manage assets to achieve a desired and
programme are Project Management, Change sustainable outcome. Asset Reliability & Integrity
Management and Knowledge Management. deals with the probability of failure of an asset,
so ARIM can be defined as ‘Ensuring the required
Asset owners who implemented this framework functions of the asset over the life-cycle of the
gained the following benefits: asset’.

Asset output

Asset input
(no waste)
Cost-level
Asset integrity &
compliance

Asset life-time

Required level + realized Risk management Budget + cost

Innovations & improvements

Figure 2: Relationship between Risk Management and Asset Management Objectives

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2 Definition of Asset (PoF) multiplied by Consequence of Failure (CoF):
Reliability & Integrity R = PoF x CoF
Management Risk Management as defined in ISO 31000 deals with
analysing risks and defining the acceptable risk levels.
Before dealing with the role of ARIM in the Asset One risk may be more acceptable than another,
Management Objectives, it may be useful to define depending on the consequences and the costs of
what Asset Reliability & Integrity is, because there are appropriate mitigating actions. ARIM identifies the
many possible definitions. potential risks and minimises those risks to the desired
optimum levels of objectives and costs.
Among the most important standards for Asset
Reliability are the European Standard EN13306 and But how do we know the PoF and CoF? In known
the Norwegian Standard NORSOK-Z-016. These technologies it is possible to make a quantitative
define reliability as ‘The ability of an item to perform risk analysis and to calculate the values on the basis
a required function under given conditions for a of historic data on the frequency of failures and the
given time interval’. The International Standards known consequences. For new technologies
IEC61508 and IEC 61511 define a Safety Integrity analysis will be more qualitative, using assumptions
Level (SIL) as a synonym for the reliability of a based on experience and knowledge of the
functional safety system: ‘Probability of a (safety involved people from different disciplines.
related) system satisfactorily performing the The cooperation between all disciplines is an
required (safety) functions under all the stated important success factor for risk management.
conditions within a stated period of time’.
The consequences of failures are linked to the
The American Petroleum Institute defines integrity Asset Management objectives. The consequences
for pressure equipment in Standard API 580 as are defined as not meeting a specific objective, e.g.
‘Maintaining the mechanical integrity of pressure ‘loss of asset output for one hour has a value of 10K
equipment items and minimizing the risk of loss of euros’. The consequence classes are used as the
containment due to deterioration’. basis for a systematic approach to Asset Reliability
& Integrity Management.
Keeping these standards in mind, in this paper we
define Asset Reliability & Integrity Management, which –– Asset output: generating the correct number
includes asset integrity, as ‘Ensuring the required of ‘conforming’ and ‘quality’ products at the
functions of the asset over the life-cycle of the asset’. required time.
–– Asset input: management of ‘input’ losses, such as
o energy
3 Asset Reliability o (raw) materials
& Integrity Management o labour/overhead (e.g. due to limited
functioning of an asset)
and Asset Value –– Asset integrity and compliance
o meeting the safety, health & environmental
The ultimate goal of a (private) company is to create requirements
value and to make profit to be able to continue its o complying with (internal and external)
existence in the long term. Safety, Health, regulations and legislation
Environment, Reputation, Output, Cost and Quality –– Asset lifetime: achieve the required lifetime of
must be in control to achieve optimal production an asset
output meeting customer requirements and –– Costs: achieving the company objectives at
complying with all stakeholders’ requirements. optimum cost in the short and long term
The management of risks is therefore a vital –– Innovation and improvement: continuous
capability. Risk is expressed as Probability of Failure improvement of asset performance

5
 4 Asset Reliability Life Cycle Management, as well as quality
& Integrity Management assurance and follow-up of activities, tasks and
work processes.
Model o Aims to ensure that clearly defined and
accepted levels of risk with respect to the
Stork has developed an Asset Reliability & Integrity Asset Management goals are achieved using
Management (ARIM) Model (Figure 3), based on cost-effective methods.
the RIMAP model (Risk Based Inspection Aand o Generates value-adding maintenance tasks to
Maintenance Procedures for European Industries) mitigate risk on the basis of either qualitative
[1]. The model can be used for Oil & Gas, Chemical, or quantitative analysis.
Heavy Industry and Power Plants, combining
Risk Based Inspection & Maintenance (RBIM) The model closes the PDCA loop between
and Risk Based Life Cycle Management. definition and execution of risk-based maintenance
tasks (Plan-Do) and analysis (Check) of the effects of
This model: plans on risk. Based on this analysis, the tasks can
o Provides guidance for implementing Risk Based be adjusted in terms of either strategy or frequency
Inspection & Maintenance (RBIM) and Risk Based (Adjust).

Asset Register Rules & regulations

Modifications Replacements Criticality Analysis Compliance analysis

RBI SIL RCM

Risk Based
Maintenance strategies
Run to failure; Fixed interval;
Condition based

Maintenance tasks/plans
Work planning

Execute maintenance plans

Adapt RBM Adapt task frequencies Training Program
strategies maintenance methods Asset Breakdown maintenance
Asset knowledge
Data logging

Maintenance Efficiency
Schedule compliance

Breakdown analysis RCA

Proactive analysis FRACAS
Condition analysis

Figure 3: Asset Reliability & Integrity Management Model

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To be able to close this loop, the maintenance or prescribed replacement tasks, such as tasks
management PDCA loop is needed. This loop generated by management systems like ISO 14001
also has to be closed. The main steps are Planning or regulations like the Seveso directive. Laws and
& Scheduling; Execution & Data Collection regulations overrule standards as described in for
including failure and cause data (Plan Do); example RBI (Risk Based Inspection) Systems.
Analysis of the failure and cause data and planning
and scheduling effectiveness; Adjustment of 3. Criticality Analysis
the maintenance plan or maintenance task Ranking the critical functions in terms of risk.
(Check Adjust). The ranking sets the priority for detailed risk
analysis and usually has four defined risk classes.
The risk matrix used is aligned with corporate risk
4.1 Closing the loop; overview of processes management policies. The steps in criticality
analysis are identifying hazards, defining dominant
The ARIM Model covers the following processes: failure mode, CoF analysis, PoF analysis, definition
of risk and classification of equipment. The PoF
1. Set up of an Asset Register analysis is based on a combination of three sources:
An Asset Register is a structured system Expert judgement, historical data & statistics,
reflecting the function of the assets as shown forecasting and modelling. From the critical
in P&IDs (piping and instrumentation diagrams). functions a division is made into static, rotating or
It usually has five levels, going from a complete safety instrumented systems. On these three
installation to the smallest composing parts. categories multi-level risk assessments are applied.
An Asset Register is usually managed in the
CMMS (Computerized Maintenance 4. Multi level risk assessments
Management System). The starting point for the detailed risk assessments
is the output from earlier assessments, either
2. Verification of applicable rules and regulations existing or from the engineering phase; e.g. HAZOP
and compliance analysis analysis, RAMSHE (Reliability Availability
The applicable laws, regulations and standards Maintainability Safety Health Environment) or
have to be screened on mandatory inspections HAZOP (HAZard and OPerability).

Area at risk Probability

Safety & health Environment Revenue loss Cost increase Unlikely Slight Occassionally Frequent
Production
Nea USD 1 2 3 4
No impact

Acci
Strategic
lost Low impact USD 2 4 6 8
action
Impact
Incid
Medium impact
USD 3 6 9 12

Ince High impact

permis USD 4 8 12 16

Figure 4: Risk Matrix

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 For static equipment, standard Risk Based determine the relevant KPIs (Key Performance
Inspection methodologies are used. Methods in Indicators) or to calculate the remaining lifetime
use are API 580/ 581 or EEMUA 159 for storage of the assets, triggering replacement or
tanks where applicable. modifications.

For Safety Instrumented Systems the IEC 61508 8. Adapting Maintenance Strategies
standard is applicable. Safety Instrumented Systems Based on the results of step 7, it may be necessary
consist of specific instrumentation such as PLCs, to review the maintenance strategy by adjusting
transmitters, valves used to form a layer of the task frequency or the task itself.
protection (LOPA) to maintain process safety or
prevent loss of containment. Safety Integrity Levels 9. Modifications and Replacements
(SIL) and testing intervals and procedures are Based on the results of step 7, it may be decided for
defined by applying the IEC 61511 for the process assets to be modified or replaced. The
industry. The risk is assessed by a risk graph as modifications are managed in the project portfolio
prescribed in the standard. process. When new assets are introduced, all 9
steps of the model have to be gone through to
For rotating equipment and other equipment not define new or modified strategies and tasks.
covered by RBI or SIL, a streamlined RCM
methodology is used.
4.2 Maintenance workflow
5. Risk Based Management strategies
From the detailed analysis, the basic maintenance ARIM interacts with maintenance workflow
strategies Run to Failure, Condition Based or Time management. Maintenance plans should be
Based are set. The attributes of the associated tasks executed on-time and within budget to allow
are defined in terms of description, frequency, craft, the risk to be controlled.
in or out of operation and location. The tasks can
be clustered in relation to these attributes to allow Workflow management also generates the
maintenance plans and routes to be built. data needed for Reliability& Integrity analysis.
The tasks are evaluated on their added value and in ISO standards sets requirements for data to be
line with the ALARP (as low as reasonably possible) collected for Reliability performance.
principle using the equation: The main data categories are:
• Equipment data, e.g. equipment class, attributes
Cost of action + Cost of Mitigated risk • Failure data, e.g. failure impact, failure mode,
< Cost of Unmitigated risk failure cause
• Maintenance data, e.g. maintenance action,
6. Training Program for Asset Knowledge downtime
To make the maintenance plans work, a training
plan has to be developed in which maintenance Notification and work orders are structured to
employees are taught the specific knowledge they capture the data needed for the analysis.
need to perform the different tasks. For critical tasks The workflow process can handle emergency
it is desirable that detailed job plans are written, work for unexpected failures, condition monitoring
containing instructions and procedures. and risk-based preventive tasks.

7. Analysis Damage and cause codes are predefined in

Data needed for analysis should be defined in catalogues and registered at equipment level.
advance and based on the defined work process Activity logging is another important input for
steps. To analyse the data, techniques like FRACAS, reliability improvement. All work orders must be
RCA and Condition Analyses are used to closed within a preset timeframe.

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 Maintenance Plan
Task list

Failure data
Notification
Work
(malfunction, need for
Order
maintenance, ...) Cost data

Operation
(performable task)
Materials

Notification Labor
(activity report)

Permits
Documents

Figure 5: Asset Reliability & Integrity Management and Maintenance Workflow

So-called ‘year orders’ should be avoided as far as 5.1 Direct & Design
possible. For inspections, the values for readings are
specified with upper and lower limits. The first step is to assess the existing situation in
terms of maturity. The model uses 5 maturity levels,
For the risk-based preventive and inspection tasks, it is as shown in Fig. 6.
important that all tasks are executed on-time.
Scheduling and schedule compliance therefore need The maturity levels are defined as follows:
to be followed-up on a daily basis. ‘Traffic lights’ are • Level 1: Starting: some failure elimination,
used to visualise the status of the process. To follow- compliance is in focus, acting after incidents
up work orders from inspections and emergency • Level 2: Developing: mechanical integrity &
work, a strict gatekeeping stage is in place. equipment reliability in focus, preventive actions
• Level 3: Organised: RCM / FMEA / RBI / SIL
are started, first risk-based actions defined
5 Developing an Asset • Level 4: Mature: all actions are on the basis of
assessed risk. Performance analysis is starting
Reliability & Integrity • Level 5: Excellence: continuous optimisation
Management programme is reached through forecasting and simulation

To implement the ARIM Model, a three-phased Assessments need to be executed to identify the
approach is used: current (‘AS IS’) situation. The strategy must fill the
• Direct & Design gap between the ‘AS IS’ situation and the desired
• Do (‘TO BE’) situation (vision and goals). Assessments
• Measure and Adjust will clarify the maturity level of the current

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 Starting Developing Organized Mature Excellence
Focus on Focus on Focus on All actions Continious
compliance, reliability, risk based risk based, improvement,
Acting after Preventive methods Focus on Simulation
incidents actions (RCM, RBI, .) Performance modeling

Figure 6: Asset Reliability & Integrity Management – maturity levels

activities related to ARIM (e.g. knowledge, 5.1.1 Supporting software tools

competences, processes, tools). Different Most companies in the Oil & Gas, Chemicals,
assessment methodologies can be applied such Power and Heavy Industry have implemented
as risk assessment, SWOT analysis, auditing etc. a system to reduce maintenance costs and
improving spare parts management.
Data mining and analysis are also used to discover
patterns in large data sets. To map the actual This is usually a CMMS system. Because such
situation the Asset Management goals systems lack functionality for applying and
(compliance & integrity, asset output, cost, asset documenting the methods for the ARIM model,
input, asset lifetime, innovation and improvement) dedicated and stand alone RBI or RCM tools or
are analysed in relation to reliability & integrity ‘home-made’ applications are often used. In the
management aspects. Analyses of the assessment last few decade, Asset Performance Management
findings result in a categorisation of the (APM) tools have become available which can
company’s reliability function. Reliability best combine the functionality of CMMS with the
practices differ for each category. The reliability requirements for the ARIM model. Figure 7
methods and tools to be used are therefore shows the functionalities of both systems.
related to the maturity level. In the implementation of an Asset Performance
Management system, special attention is needed
After determining the actual situation, actions for legacy systems which are often Excel or Access
can be defined to improve the asset management applications.
goals.
5.1.2 Organisation role model
Asset Register Rules & regulations
Many organisations traditionally have ‘silos’ which
Modifications Replacements Criticality Analysis Compliance analysis are obstacles to the successful implementation of
RBI SIL RCM the framework. To get the full benefit of the
Risk Based framework, close cooperation is required between
Maintenance strategies
Run to failure; Fixed interval;
Asset Management, Asset (Reliability & Integrity)
APM SYSTEM
Condition based

Maintenance tasks/plans
Engineering and Maintenance.
Work planning

A set of roles should be defined in the organization

CMMS SYSTEM
Execute maintenance plans
Adapt RBM Adapt task frequencies Training Program
strategies maintenance methods
Asset Breakdown maintenance
Data logging
Asset knowledge
with clear responsibilities. Figure 8 shows the
predefined role model.
Maintenance Efficiency
Schedule compliance The following roles and responsibilities are defined:
Breakdown analysis RCA
• Governance – define the internal standards,
methods and tools; carry out internal auditing of
Proactive analysis FRACAS
Condition analysis

the application of these standards, methods and

Figure 7: Functionality comparison of APM and CMMS tools.

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 Governance (Methods, systems, audits)
Service provider
Asset Engineer
Asset Owner Asset Manager Maintenance Management
(plant level)
Operations Management
Asset strategy Risk Management Operating procedure Safe and reliable operations
Objectives Budgets/Targets Maintenance program Efficient maintenance execution
Management review Project portfolio Asset improvement Project delivery
Contractor Management Configuration management Tools, facilities, equipment
Performance monitoring
Continual improvements

Figure 8: Organisation role model

• Asset Owner – define the operational strategic Motivated people are needed to ensure the
plan and Asset Strategy; maintain the line of sight. required assets performance and a coherent
• Asset Manager – define the AM plans in Reliability & Integrity management system.
cooperation with Asset Engineer and Service Empowerment, ownership, responsibility and
Provider; monitor the KPIs and drive continuous breaking down virtual barriers between sections
improvement. and disciplines are all needed to achieve
• Asset Engineer – define the maintenance sustainable success.
strategies and operating procedures in relation
to prevention of failures; analyse the These changes can be achieved by creating
effectiveness of the asset strategies; carry out multidisciplinary teams of maintenance
root cause analysis of unexpected failures. technicians, operators and engineers, and having
• Service Provider Maintenance Management them analyse the effectiveness and efficiency of
– deliver the maintenance programme on-time their daily operation in relation to cost, breakdown
and within budget; reporting and data and output loss. In larger organisations it is often
collection; analysis of the efficiency of difficult to make people from different sections
maintenance execution. work together on collective problems because of
• Operations Management – operate the asset the ‘silos’ between the different disciplines.
within the defined operating window; report Leadership is needed to make this work.
deviations; cooperate in root cause analysis. In multi-site situations, all sites of the company
focus on reliability. Learning from each other
An RASCI matrix is used to define the responsibilities in obviously leads to better processes. It is possible to
the organisation based on this role model. It is important standardise assets and processes, using more or
that the roles are not combined in one person to avoid less the same reliability programmes.
any conflict of duties. For example if there is a large Performance Management is key to achieve this.
maintenance backlog, this is the problem of both the KPIs (Key Performance Indicators) for asset reliability
Maintenance Manager and the Asset Engineer. are reported, and discussed at site, line and section
level in monthly and quarterly meetings.
To create awareness, events are organised in which
5.2 Do: establishing a company-wide focus on all employees are familiarised with the asset
Asset Reliability reliability strategy. By making a connection
between mindset, safety, cost & reliability, and by
Implementing Reliability & Integrity Management achieving alignment, an important milestone can
often requires changes in the working approach be reached in achieving the desired culture
and culture. change.

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 Metrics or KPIs Desirable trend
relative to baseline
PM compliance Up
PM labour hours as a percentage of total labour hours Up
Predictive (on-condition or condition-directed) maintenance labour hours as a percentage of Up
total labour hours
Emergency / demand maintenance labour hours as a percentage of total labour hours Down
Corrective maintenance labour hours as a percentage of total labour hours Down
OEE Up
Hours of unscheduled downtime Down
Hours of scheduled downtime Down
Total cost of replacement parts Down
Overtime labour hours as a percentage of total maintenance labour Down
Failure rates [Mean Time Between Failures] Down
Repair rates [Mean Time To Repair] Down
Maintenance backlog Down

Table 1: Key Performance Indicators

5.3 Measure & Adjust: performance 6 Asset Reliability &

management Integrity Management
To monitor the effectiveness of implementation
delivering asset value
of the framework and the risk-based maintenance
strategies, a set of performance indicators is used. As listed in Chapter 4 of this paper, we distinguish
Table 1 shows the KPIs which are used. 6 asset values. In this chapter the added value of
ARIM is described for each asset value.
The indicators are used to measure the ‘AS IS’
performance and the desirable trend reflecting
the rate of improvement. 6.1 Asset output

The main effects which are monitored are: Applying ARIM results in added value maintenance
• PM compliance increase to measure the strategies based on risk. Asset reliability and
effectiveness of the planning & scheduling and availability are optimised to ensure the asset
possible risk. performs its function.
• Predictive (on-condition or condition-directed)
maintenance labour hours as a percent of total The most common method to measure asset
labour hours to measure the increase in the output is the Overall Equipment Efficiency (OEE).
number of condition based maintenance tasks. OEE is the product of the availability, performance
• Emergency and corrective maintenance labour and quality rates of the equipment. The impact of
hours as a percent of total labour to measure asset reliability on the output is often significant.
the increase in reliability.
• Hours of unscheduled downtime to measure By optimising the reliability parameters, both OEE
the improvement of availability. and asset output will increase.

13
 A Potential production time
Availability B Actual production time Availablity losses
(breawk-downs,
change overs)
C Theoretical output
Performance D Actual output Performance losses
(minor stoppages,
reduced speed)
E Actual output
Quality F Good product Quality losses Effectiveness Loss
(scrap, rework)

Figure 9: Asset output in terms of OEE

6.2 Asset input Risk matrices, as applied to define asset criticality,

are connected to corporate risk management.
Asset input means all possible waste in the process This results in a managed risk profile of the assets
input. Performing ARIM provides an understanding of which is fully in line of sight.
the real drivers. Mitigations actions are defined to
reduced losses and efficiency. Waste can be caused
by raw materials not conforming to the required 6.4 Asset Lifetime
specifications, energy losses such as power,
compressed air or heating, and human factors such as The asset life-cycle runs from design, operation
insufficient knowledge or operating mistakes. Figure and maintenance right through to decommissioning.
10 shows the effect of waste on the process output. In all phases ARIM is applicable at strategic, tactical
and operational level. It may sometimes be
As well as the input coming from outside the necessary or desirable to lengthen the lifetime
process, each process has an intrinsic conversion of an asset. In that case, a cost–benefit analysis
rate, for example waiting time between two must be carried out. Ultimately, ARIM defines
process steps. Waste or loss is a product of this rate, value-adding activities to be executed by
and can only be reduced by changing the process. Asset Service Providing.

6.3 Asset integrity and compliance 6.5 Costs

ARIM generates maintenance tasks as the result ARIM strives to achieve the lowest possible
of applicable laws, regulations and standards – for Total Cost of Ownership (TCO) by keeping the
example tasks generated by management systems manufacturing costs per unit as low as possible
such as ISO 14001, or regulations such as the during the operational lifetime of the asset, without
Seveso directive. These tasks are defined, executed jeopardising safety, health and environmental
and monitoring demonstrably. requirements (‘License to Operate’). To ensure
continuity, this is done in a sustainable manner.

14 www.stork.com
 Asset function
Leveraging above 100% Asset function needs (re-)engineering activit

100%

Energy losses:
Power - Pressured air - Heating 90%
Asset function
Leveraging Leveraging
above 100% Asset function needs (re-)engineering activities

Scrap:
the Asset function OL R
100%
Energy Due to low quality of raw materials
75%
Losses of human energy:
90% RB
Injuries - illnesses Leveraging
the Asset function
RAO RC
exceptional actions L
Raw Materials 75%
RB
Process RA

People

Input Output
Asset Failure t1 t2 t3 Asset Failure
Conversion rate Asset Failure t1 t2 t3 Asset Failure t4 t

Figure 10: Effect of input losses on output Figure

Figure 11:11: Leveraging
Leveraging the Assetthe Assetversus
Function Function versus Asset Failure
Asset Failure

The optimum costs depend on the agreed risk capability because of changed requirements. In
of not meeting its objectives that a company is that case not only does the risk RB of an asset
prepared to take. failure have to be prevented or mitigated, but it is
also necessary to define and implement new or
6.6 Innovation and improvement changed conditions, asset opportunities OL, to
raise the average asset function level to 90%.
Developments like market expansion, innovation
and higher quality standards can have an impact The timeframe from t2 to t3 can be used to achieve
on the required reliability of an installation. this. The real length of the timeframe will depend
Taking advantage of this is called Opportunity on technical, organisational and financial
Management, which is the opposite of Risk parameters. Once the goal of 90% has been
Management. If the reliability of an asset needs to achieved, asset failure can be prevented by a new
increase, its risk profile must be reviewed to allow Risk Analysis (RC).
maximum advantage to be taken of the opportunity
benefits as the costs of the risk profile change. Two important points should be noted:
• The actions for RC are not necessarily the sum of
If the required reliability level increases, the RB and OL, since preventing risks is based a
Probability of Failure (PoF) and/or the Consequence different philosophy from applying
of Failure (CoF) must be reduced. opportunities.
• Increasing asset function to more than 100%
For reasons of simplicity the asset function as is not possible. If such a high level is required,
shown in the figure is defined as a percentage (re-)engineering of the asset will be necessary.
of the maximum function that an asset can fulfil.
In the example, a Risk Analysis (RA) shows that
the current average asset function level is 75%
of the maximum asset capability. An asset failure
is expected at t1. In this example the asset function
should be extended to 90% of the function

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 Asset Management governance

Risk management

Criticality analyses
Asset strategies & concepts
Compliance concepts LT/MT planning
Budget
Project portfolio
Stakeholders & values Asset
Strategic analysis concept Execution of asset
Goals Management Concepts and plans
AM plans
Efficiency
Quality
AM policy
& strategy Asset
service
Domain of Asset providing
Reliability & Integrity
Management

AM analysis AM Performance & condition

Failure & compliance analysis & performances Data & recording
Improvement actions Improvements Auditing
Management review

AM organisation AM people AM infrastructure

Figure 12: The ARIM domain within the Stork Asset Management Model

7 Asset Reliability & acquisition, asset utilisation, asset care, asset

Integrity Management improvement and asset disposal. Figure 12 shows
the Stork Asset Management Model and the ARIM
and Asset Management domain which forms part of it. If a company wants
to improve the reliability of its assets, the ARIM
Asset Reliability & Integrity Management (ARIM) is Model offers support in ensuring the required
an important cornerstone of successful Asset function of assets:
Management in order to deliver Asset Value. • The performance of the assets should be
In co-operation with several industrial companies continuously monitored to ensure the required
(chemical, manufacturing and electricity generation) function of the assets in relation to the Asset
an Asset Management model is developed. Management Objectives: Output, Input,
Compliance, Lifetime and Costs.
The model refers to the structure of the Asset • The sixth objective is Innovation & Improvement,
Management system of PAS 55 / ISO 55000 [2]. which means that ARIM should focus on
An outline of this Asset Management model is continuous improvement taking into account
given in the paper ‘A Field Proven Vision on Asset the balance between cost and risk levels and
Management’ [3]. The ARIM Model fits in the Asset responding to opportunities that arise.
Management Model and translates the overall asset • The intention is to add value in all phases
strategy into concrete concepts and strategies to of the asset lifetime: Design – Operation
mitigate the associated risk. The concept and & Maintenance – Decommissioning.
strategies must be integrated in plans and tasks • Achieving optimal results requires close
and their subsequently executed by service cooperation between Asset Management
providing processes such as asset creation/ specialists, Engineering and Maintenance.

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case
study
8 Case study To establish the right focus on asset reliability,
multidisciplinary teams were composed. Operators,
The ARIM framework is implemented in a Chemical maintenance technicians and engineers are
company which operates multiple plants at one site. working together to analyse the effectiveness and
The case for action was an upward trend in efficiency of daily operations relating to cost,
maintenance cost/Net Replacement Value (NPV), breakdowns and stop time. Especially in larger
which had a negative impact on cost per tonne of organisations, guidance is needed to create a more
product. The main identified cause was an increase in cooperative way of working and to embed asset
unexpected losses and poor start-up after turnarounds. reliability management in the daily operations.

The starting situation was a traditional technically- To close the improvement loop, a process has
focused organisation. Little use was made of been implemented with focus on actual added
risk-based methods and there were ‘silos’ between value created by the measures taken.
inspection, mechanical, E&I and process automation.
Implementing the ARIM model started with a gap As a result of implementing the framework, the
analysis from which an ARIM programme was following results are reported:
defined including action plan and business case. • The maintenance factor (maintenance cost/
NPV) has stabilised at around 2.2% for the site.
The main actions were: • There is a better grip on unexpected losses.
• Redefining work processes and procedure and The turnarounds and a major part of the
introduction within CMMS. slowdowns are coordinated site-wide.
• Introduction of risk-based maintenance: which • Following the defined processes generates
risks can we mitigate or eliminate? reliable data and transparency. This is the
• Redefining roles and responsibilities and foundation for high-end projects like the
organisation. Implementing an Asset Manager introduction of Zero Based Budgeting.
function for each plant, and introducing a
Maintenance Manager for each cluster of plants.
• Defining the Asset Engineer role and making 9 References
this role operational under the Asset Manager.
• Training and on-the-job coaching for new job [1] RIMAP CWA 15740: 2008
holders.
• Establishing a company-wide focus on asset [2] PASS 55 / ISO 55000, www.theiam.org and
reliability: spreading the message and www.assetmanagementstandards.com
embedding it throughout the organisation.
[3] White Paper ‘A Field Proven Vision on
As part of the introduction of risk-based Asset Management’, Jos Van der Aelst,
maintenance, corrective and preventive aspects Principal Consultant - Stork
were taken into account by using Reliability
Centered Maintenance (RCM), Risk Based Inspection
(RBI) as well as methods for RCA (Root Cause
Analysis). Three types of assets are distinguished:
a. Mechanical/static assets, such as drums and
piping.
b. Moving assets, such as E-motors, pumps and
compressors.
c. Safety assets, such as alarm systems and safety
valves.

18 www.stork.com
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Stork Asset Management technology
E: [email protected]
T: +31 (0)88 08 92371

Hans Minnaard
Principal Consultant

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