Failure Treatment Strategies

After predicting the failure of an asset component, it is necessary to assess the options available to rectify the situation. There are various strategies available to correct the failure mode. These generally fall into the following categories and apply to some or all of the failure modes as appropriate.

Utilization

Operate the asset differently

This can be done by looking at supply options, rerouting or reducing the peak demands or stresses on the asset.

Maintain the asset differently

To make it more reliable or to extend its life a different maintenance regime could be used.

Operator Error

Options include training, protection system, and operator support systems such as operations manuals etc.

Demand Management

Reduce demand or growth in demand to avoid capacity failure.

Renewal

Rehabilitate the existing asset

Cost effective rehabilitation of the asset could ensure that it meets the level of service required of it.

Replace the existing asset

If rehabilitation is not cost effective, the asset may need to be replaced.

New Work

If the above two options cannot correct the asset failure (e.g. demand/ capacity) then the following options may need to be considered:

• Create (or acquire) a new asset
• Augment (or add to) an existing asset
• Disposal (asset rationalization)

This option may be brought about by a strategic planning decision or could result from failure of other options. Does the organization need to own the assets? Is the ownership of the asset (or asset group) a core activity of the organization?

For those assets involving non-core activities it may be necessary to reduce asset stocks. Transfer ownership of some assets back to the users, especially if only small numbers of users are involved. For other assets, look at leasing from other specialist companies e.g. vehicle fleets, office building, etc.

Asset rationalization examples

Throughout the world, many water authorities are finding that their sewerage purification plants are being surrounded by dense commercial or urban developments due to the growth of these major cities.

In most cases, this trend was recognized many years earlier and the authorities have acquired large buffer zones around these plants to provide protection for the nuisance noises and offensive odors, etc. In many cases these facilities are facing major upgrades for the increases in hydraulic and biological loadings and also for increased environmental discharge standards, i.e. tertiary treatment.

By fully appreciating the issues impacting these authorities and in particular these individual facilities, the organizations have developed unique strategies to overcome these problems.

In one such example the augmentations for both capacity and improved discharged quality are being funded by the sale of the large buffer areas for commercial development, with the problems of odor and noise being controlled by the enclosure of the facility and appropriate building structure. In some cases this process has resulted in a surplus cash flow while allowing the organization to meet their customers' expectations and their statutory requirements.

The development of innovative strategic options such as this are assisted by the availability of information systems that can readily identify the:

• Current value of marketable assets
• Predicted failure mode of existing assets
• Assessment of all available treatment options to overcome the failure modes
• Long term predictive plans for:
  • Customer expectations
  • Regulatory requirements
  • Growth and demand.

Reduced level of service

Allowing assets to decay to a greater extent may not necessarily result in failure but will result in a lower level of service being provided to customers or users of the assets. Depending on the ability to predict the decay of the asset, and thus the confidence in the estimation of residual life and failure rates, the organization can effectively reduce the level of service to give the lowest life cycle cost or minimum cash flow, whichever is critical to the organization.

This option, however, often involves taking greater risks.

As an example, many local authorities have large sealed pavements, which are not only under utilized but also cannot be supported (funded) by the current population. In this area the organization can:

• Reduce the area of pavement (street width)
• Return sealed roads to gravel roads
• Do nothing.

In accordance with good economic principles, the "do-nothing" option must be included and the risk (cost) to the organization assessed against this base.

Augmented asset

This covers those works that have been completed to upgrade the capacity of the asset rather than improving the level of service.

Improved asset

This covers options that improve the standard or levels of service delivered by the asset as required by new customer expectations or government regulations etc.

Staged refurbishment

This treatment option is similar to rehabilitation but is used to describe the work proposed for components or assets that make up a facility in which the rehabilitation will be carried out over a period of time. This describes the optimizing of the rehabilitation to suit the life extension of the various components that make up the asset or facility.