Asset Management Likelihood of Failure Scoring Improved by Condition Assessment Scoring Integration Techniques

Asset management is a core activity for public utilities; however, the extent and efficiency of how it is performed varies from utility to utility. Utilities are familiar with the benefits of using risk-based decisions to help establish investment priorities. The popular industry definition of asset risk is the “likelihood of failure” (LOF) multiplied times the “consequence of failure” (COF). This paper presents a discussion of multiple ways to produce asset condition scores; an array of asset aggregation combinations; and multiple mathematical methods of aggregating assets scores. The differing scoring results from these methods and the corresponding prioritization influence are illustrated for hierarchy levels or asset groupings. The paper discusses the sensitivity of the risk scoring results based on the granularity of the individual asset scores and how the scoring integration process affects asset prioritization. A recommended LOF mathematical integration scoring method and an example application are discussed.