Completing an ORDM Analysis

To complete a detailed ORDM analysis a complex series of tasks is involved.

The process starts with a "generic" task list that is then expanded or retracted to suit the degree of sophistication warranted.

This generic approach is shown in the detailed task list below.

Detailed Task List

• List all assets involved in analysis
• Break individual assets down to key components with different:
  • Effective life
  • Consequence of failure
  • Maintenance require or reliability/objectives.
• For each component/asset, identify the:
  • Failure modes
  • Causes of failure
  • Consequences of failure
  • Possible treatment options or activities to overcome or reduce failure.
• Quantify cost (economical) of the consequences of failure (risk cost).
  List these as costs:
  • After failure
  • Before failure (i.e. in a planned environment).
• Break them into key cost centers.
• Direct costs (probability of failure), including:
  • Repair costs
  • Damage claims (property)
  • Damage claims (personal)
  • Insurance excess payments.
• Indirect (ancillary) business costs (probability of failure causing these events), including:
  • Environmental damage
  • Loss of service/customer
  • Image
  • Political sensitivity
  • Impact on the management system.
• Quantify costs of individual treatment options
• Identify current costs and predict future costs for:
  • Maintenance
  • Operations
  • Loss of production.
• Identify potential benefits likely to be derived for each treatment option.
• Direct benefits, including:
  • Reduced cost of repair
  • Reduced operational costs
  • Reduced maintenance costs
  • Increased asset life — replacement deferred
  • Improved productive output or income.
• Indirect (ancillary business risks) benefits, including:
  • Safety (OH&S) staff and public
  • Environmental
  • Damage claims — property, life (personal)
  • Public image
  • Customer tolerance (cost of failure to customer)
  • Improved level of service
  • Political sensitivity.
• Complete coarse and fine filter processes, including:
  • Complete filtering processes
  • Complete sufficient filtering and ranking of assets with risk exposure
  • Rank these
  • Choose those capable of being analyzed with the available resources.
• Complete economic analysis using organizational evaluation techniques including sensitivity of assumptions (where required/or necessary).
• Identify best (apparent) strategy for asset including the:
  • Lowest life cycle cost option (4% disc rate)
  • Best appropriate strategy for current business environment (10% disc rate).
• Identify appropriate maintenance and condition monitoring strategy to suit recommended renewal strategy.
• Identify issues or assumptions requiring further (future) analysis, including:
  • Weaknesses in this present analysis
  • Areas of future potential savings — causal based, activity based, capital investment based.
• Complete full reports in accordance with organizational reporting requirements.