Asset criticality assessment provides the foundation for wider strategic asset management planning (SAMP) and provides an organisation with a semi-quantitative model to evaluate and score how an in-service failure of an asset can impact operational performance across the entire organisation’s portfolio of assets. Providing decision-making insight for asset managers and budget holders within an organisation, this process whereby asset management meets risk management should be the very first step in the development of an SAMP.

This process whereby asset management meets risk management should be the very first step in the development of an SAMP

Strategic asset management involves the management of the whole life cycle of the asset or portfolio of assets through a systematic process, from procurement, operation of the asset, including maintenance, through to the disposal of the asset when it reaches the end of its service life. SAMP aims to meet the organisation’s objectives through balancing both costs and in-service performance to increase efficiency in the whole life cost of an asset and reduce business continuity risks associated with asset or component failure.

An SAMP should form part of the wider business strategy for managing risk and should include a holistic view on all assets as well as the granular detail to address the challenges of managing a diverse range of port, terminal and logistics related assets. ISO 55001 provides a framework for the development of an organisation’s SAMP as well as a good ‘sense-check’ of the established strategy even if accreditation to ISO 55001 is not a priority for the organisation.

When maintaining assets, it is not unusual for unplanned breakdowns and failures of equipment while in service. It is the role of the maintenance function to respond to breakdowns and carry out reactive maintenance to put the asset back into service. Maintenance strategy typically requires that works are undertaken at planned intervals to minimise the frequency of unplanned breakdowns.

This preferred proactive approach uses the original equipment manufacturers’ (OEM) recommended guidelines to determine the frequency and type of maintenance to be carried out. However, the business should first assess the likely impact of an asset or group of asset failures on the operation.

Asset criticality assessment provides the foundation of wider strategic asset management plan (SAMP) and can give an organisation a numerical model to evaluate how in-service failure of an asset can impact operational performance

Criticality assessment

When considering operations with large numbers of assets and pieces of infrastructure that are spread over an extended area, it can be challenging to decide where best to direct human and financial resources. Taking a risk-based approach to determining the importance or criticality of various assets helps inform decisions where to concentrate limited resources.

Asset criticality assessment from a holistic operational perspective will provide the insight into the likely risks associated with asset breakdowns and feed into the strategic plan for managing accordingly.

Cross-departmental process

For ports, terminals and logistics facilities, which are typically asset intensive, both operational and maintenance teams have a stake in asset reliability. Undertaking criticality assessments with the input of the wider organisation is crucial to capturing the likelihood and operational consequences of asset failure. A cross-departmental approach ensures that the operational, regulatory and environmental impacts are identified and scored against the known condition and in-service performance of the asset.

Undertaking criticality assessments with the input of the wider organisation is crucial to capturing the likelihood and operational consequences of asset failure

Undertaking the assessment

Criticality assessments are a semi-quantitative numerical assessment that will consider the likelihood of a failure and the impact of such failure on the organisation, accounting for the:

• Impact of asset or component failure on operational efficiency
• Frequency of unplanned breakdowns
• OEM’s recommended maintenance guidelines
• Costs associated with maintenance and repairs
• Risks related to asset breakdowns
• Operational perspective on asset failure
• Integration with the strategic asset management plan (SAMP)
• Holistic view of asset portfolio

Once each asset is scored using the metrics identified above according to the likelihood and consequences of a failure, the entire portfolio of assets can be ranked in order of criticality using the resulting asset criticality ratings (ACR) to identify the ‘high-risk’ assets for a specific operation. It is good practice to regularly review this assessment to update and consider changes in the operation and the condition/performance of the assets as they progress through their service life.

Summary

Performing an asset criticality analysis offers numerous benefits by providing valuable data and insights to your organisation. This analysis can enhance the reliability, availability, and utilisation of equipment, ensuring that resources such as labour and materials are allocated more efficiently. It also aids in optimising business decisions related to inventory, procurement, and maintenance budgeting.

By advancing predictive and preventive maintenance plans tailored to the needs of critical assets, organisations can manage costs, risk and justify selective investments in predictive and condition-based maintenance technologies. Furthermore, this analysis drives digitalisation efforts, enabling comprehensive data capture for all critical assets, which in turn helps maintain longer-term stability and predictability of equipment, systems, and operations.

As the positive impacts of an asset criticality assessment begin to manifest in operations, some asset rankings may change. It is essential to continuously assess assets to ensure that hierarchies remain accurate. An Asset Criticality Assessment is a dynamic tool that not only improves reliability but also saves your organisation time and money by providing a structured approach to managing and prioritising assets based on their criticality to the overall operation.

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