Asset-management decision-support modeling, using a health and risk model

This paper discusses a decision-support model for asset managers to prioritise assets requiring additional maintenance or replacement, by estimating asset remaining-lifetime and failure impact. The asset health and risk model (AHRM) being the heart of this model is based on dedicated asset-condition assessment functions in combination with usage-based condition estimations and a statistical approach using Monte Carlo simulations. This results in a health index colour code with two dimensions. The colour itself gives an indication of expected remnant life or additional maintenance requirements and the colour intensity gives an indication of the assessment reliability, thereby providing a clear and easily readable dashboard for the asset manager. A risk-based approach is used for further decision support. For each asset a risk-impact categorization is provided and plotted in a risk matrix, enabling risk prioritization on both probability and impact. The paper describes the methods behind the model.