Cost benefit evaluation of maintenance options for aging equipment using monetised risk values: A practical application

Abstract

With constant pressure to reduce maintenance costs as well as short-term budget constraints in a changing market environment, asset managers are compelled to continue operating aging assets while deferring maintenance and investment. The scope of the paper is to get an overview of the methods used to evaluate risks and opportunities for deferred maintenance interventions on aging equipment, and underline the importance to include monetised risk considerations and timeline considerations, to evaluate different scenarios connected with the possible options. Monetised risk values offer the opportunity to support risk-based decision-making using the data collected from the field. The paper presents examples of two different methods and their practical applicability in two case studies in the energy sector for a company managing power stations. The use of the existing and the new proposed solutions are discussed on the basis of their applicability to the concrete examples