January 20, 2020
Image default
Finance

How Reliability Modelling Can Help You Improve the Value of Your Asset 

Many businesses face a lot of challenges when it comes to asset reliability. Whether a given asset will be available when it is needed to meet the operational needs of an organization may be anyone’s guess. This may result in a lot of monetary costs and can jeopardize the productivity and value of an organization. 

When you dig deeper to find the possible causes of unreliability, some of the most common factors that you are likely to find are poorly designed management programs, poor maintenance schedules, and lack of planning among many other factors. Add that to the limited collaboration with other stakeholders like the asset management teams, which may sometimes fail to implement the right asset reliability practices. 

So, how can reliability modelling save the situation? Well, before we dig deeper, let’s first understand what the term means in the first place.

What Is Reliability Modelling? 

Reliability modelling focuses on risk estimation as well as calculation or assessment of failure probabilities over an asset’s lifetime. The goal of a reliability model is to ensure that a product or an asset will consistently meet the organization’s expectations to perform its intended purpose over a given period of time under specified conditions. 

A reliability model factors in the costs of failure, including any form of downtime, maintenance costs, and warranty costs. In most cases, this is done via a wide range of analysis tools and methods. So, reliability modelling experts must not only understand the proper use of methodologies and analysis tools, but must also know the tools that are effective during the various phases of a product or asset life cycle. 

The Value of Reliability Modelling

  • Saves Time: Any form of unanticipated failure translates to a lot of lost time and resources to an organization. Using reliability modelling concepts can help minimize such failures and ultimately avoid time wastage. 
  • Boost Productivity: Some assets require rigorous tests to be done to eliminate early life failures or optimize their operations. Reliability modelling techniques can help reduce the time and resources that are needed to do all these or figure out what’s likely to work and what cannot. 
  • Maximizes Throughput: Any form of downtime in the life cycle of an asset reduces an organization’s throughput. A well-executed reliability modelling minimizes operating costs and maximizes an organization’s overall throughput. 
  • Minimizes Distribution System costs: Optimized maintenance programs and few failures minimize an organization’s distribution system costs in terms of storage costs, transportation and logistics. It also lowers labour costs. 
  • Minimizes liability risks: Reliability modelling not only minimizes failures but also mitigate potential damages that may be caused by such failure, which ultimately minimizes the risk of exposure to unnecessary liabilities. 

There are numerous benefits of integrating reliability modelling and analysis tools in your organization. For instance, you can improve your asset reliability, reduce liability and labor costs, boost your organization’s productivity and throughput, and strengthen your overall asset value. Put simply, reliability modelling will have a positive impact on your business or organization’s bottom line.