Jennifer Zach, CMOjennifer@uberlytics.

com

www.uberlytics.com

480.414.4636

Criticality AnalysisSetting Up Asset Management Programs for Success

Introduction to Criticality Analysis

The What & The Why

What is the Aim?• Successful and sustainable Asset

Management programs and all the benefits that these programs should bring.

• Achieving this depends on building your program on the right foundation.

A criticality analysis is foundational to successful asset

management programs.

When we understand what is critical, we can:

• Make better risk-based decisions• Manage & mitigate risk• Set priorities and focus

Definition of Criticality

Criticality is a measure of the relative importance of something, usually a tangible system or asset, to the corporate mission or aim, objectives and values of your organization.

crit·i·cal·i·ty /kritəˈkalitē/• The quality, state, or degree of

being of the highest importance.• Having a decisive or crucial

importance in the success, failure, or existence of something.

What is a Criticality Analysis?

A criticality analysis is a way to determine which systems and assets are most essential for meeting the objectives and values of the organization, in order to set priorities for further reliability initiatives and deeper analysis.

How do we evaluate criticality?

• Against a grid of criteria based on organizational values & objectives.

• Process includes assessment of risk through looking at levels of consequence and probability in plausible failure scenarios.

CA Quick DescriptionA criticality analysis is a means of:• examining and understanding available data • collecting and preserving organizational knowledge• understanding the effect of a failure of a system or

some part or whole of an asset• evaluating the severity of the resulting consequences• ascribing a likelihood to the failure occurring; and then • organizing all of this information to compare and rank

the results.

Common Misconceptions

Criticality ≠

Condition ≠

Priority

Criticality, Condition & Priority

The criticality of an asset or system depends on its relative importance and impact on performance. • influenced by design • how it interacts with and relates to neighboring assets and systems• associated consequences of performance failure 

The condition of an asset is a measure of its current state, at some point along a relevant failure curve.

Priority is set by the relationship between the criticality and the condition of an asset.

Is an expensive asset a critical asset?

( Is an inexpensive asset not critical? )

Things We Hear About Criticality

(For Real)

“We already know what’s critical.”

“Everything in our operation is critical.”

“We assign a high criticality ranking to everything that

touches product. Everything else is mid or low critical.”

“Critical assets will make themselves

known.”

“A criticality analysis is going to take too long and cost too much – can’t you just tell me

what is critical?”

You will not have any criticality/risk rankings to help set priorities and make decisions. OR You have rankings that are artificial/arbitrary and do not accurately reflect actual risk.

What Happens Without a CA

1. Missed opportunities for optimizing your programs.

2. Misdirected and misspent efforts and resources.

3. Unrecognized and unmitigated risk.

Potentially catastrophic.

An effective CA inevitably uncovers previously unrecognized risk.

Asset Register Register organized into Functional Systems and Asset Types

Criticality Analysis on Functional Systems

RCM on Critical Systems Condition Assessment on Critical Systems

Condition Monitoring (CM) on RCM/Critical Systems

PM optimizations on RCM/Critical Systems

Capital Planning based on Criticality, RCM, Modeling

Reserve and Underwriting

Opportunities

Optimized Financials &

LOS

Operational Management Optimization based on System Risks, RCM, CM, Asset

Types analysis

GoalBenefits of CA

Benefits of CA• Aligned objectives, line of sight.• Risk discovery and mitigation.• Better risk-based decision-making.• Set priorities and balance competing

demands for limited resources.• Cross functional collaboration.• Improved data organization.• Enhanced asset base knowledge.

Criticality Analysis• Foundational to successful and

sustainable AM programs• Risk Discovery Tool• AM Alignment Tool• Vital Decision Support Tool

Criticality Analysis is Critical

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