Asset Health & Asset Criticality
See how JANA's Quantitative Analysis approach gives you better information to make more informed decisions
Asset Health Assessments and Asset Criticality Analyses are fundamental components in the optimization of Asset Management Plans. Successful Assessments allow the following two goals to be achieved:
Results that allow a pipeline operator to draw genuine conclusions as to the actual condition and reality of the asset
Comparisons between and across different asset families and classes, comparing dissimilar assets on a normalized basis
The Quantitative Analysis approach used by JANA achieves both goals. To understand the value of this method, it is important to weigh the benefits and challenges of the various options available for completing the Assessments. There are two primary approaches generally considered: (1) Relative Risk, Scoring or Index Model (scoring type) and (2) Absolute Quantitative. There are two fundamental issues with scoring type methods:
They do not provide the required outputs needed to manage pipeline integrity
They have been shown by research in the broader risk management field to be fundamentally flawed
In short, they don’t work.
Each of the Assessments (Criticality and Asset Health) is a separate process that provides unique insights into the condition of an Asset. To get results that reflect the actual condition and reality of the Asset (Goal #1), a specific and formal approach is required. The approach must be chosen based on the nature of the Asset itself as well as the objectives of the Asset Management System, as these define a specific set of requirements for the approach. Further, the approach used to compare dissimilar Assets on a normalized basis (Goal #2) determines whether such a comparison will even be possible. If a suitable approach is not taken, the result will again be misleading or erroneous conclusions because there will be no common basis for the comparison of risk.
JANA's Quantitative Approach to Asset Health & Asset Criticality
JANA has developed and employs a Quantitative Approach to the Assessments. It aligns with well-known industry standards (e.g. ISO 55000, IEC 60300-3-11 and now-retired MIL-STD-1629A) and ensures data-centered models, fact-based decision-making, and analytics that can be practically applied. This gives pipeline operators:
a deep understanding of current and projected future performance of assets,
comprehension of how asset conditions impact system reliability,
the ability to clearly articulate risk to regulators and stakeholders, and
the capability to make budget decisions based on risk and reliability.
There is genuine value to Asset Health Assessments and Asset Criticality Analyses for pipelines, storage facilities, and associated assets. The key to unlocking the value of these Assessments is to select the approach that is appropriate to the nature of the Assets and the objectives of the Asset Management process. JANA’s use of Quantitative Analysis is the only one that creates an accurate assessment of the assets and allows this data to be applied across different asset families and classes.
JANA’s Asset Management Philosophy is predicated on a risk-based approach to Asset Criticality. Thus, there is no one “cookie-cutter” approach to Asset Criticality without a complete understanding of a pipeline operator’s Asset Management objectives, the asset base itself, and the operator’s current risk management process.
JANA facilitates workshops to develop a common understanding of the role of Asset Health and Asset Criticality in the overall Asset Management Plan. The workshops define the basis for a pipeline operator’s Asset Health & Criticality Standard. They also develop and outline the methodology for Asset Health by understanding the desired use of criticality based on the organization’s objectives, current operations, and existing risk management processes. The ultimate output of the workshop is typically a Roadmap to complete the Asset Health Framework, based on Key Drivers, a Common Vision Statement and Goals for Asset Health across asset bases.
Get started on your new roadmap to a better approach for Asset Health & Asset Criticality. Let's talk.
- Intelligent and scalable risk management
- Exceed regulations with best-in-class compliance
- Prioritize tasks in your asset management
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- Achieve optimal compliance more efficiently
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