Glossary of Asset Prioritization Terms

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Glossary of Asset Prioritization Terms

The following terms are used throughout the asset prioritization topics. For a full glossary of APM terms, see Glossary.

Term

Definition

Analysis Criteria

Business goals that assets are evaluated against during analysis. Typical criteria are safety, environment, quality, throughput, operating cost, and customer service.

Each criterion is assigned consequences that have unique scores. The higher the score, the more critical the consequence of failure.

Asset Prioritization Analysis

Method of evaluating the impact of equipment failure on key business objectives. Standard criteria are used, which are based on business goals.

Consequence Priority

Result of asset prioritization analysis used by APM to identify which assets need to be worked on first. Consequence priority numbers are used to determine the impact of indicator alarms and to prioritize work activities.

The consequence priority number is calculated using one or more rules that evaluate the asset’s consequence scores. For example, priority 9 might be assigned to an asset if its safety or environment criterion has a score of 38 or more.

Failure

Inability of the equipment to perform any function at the required performance level. Some corrective intervention is required to restore equipment capability.

Failure Consequence

The impact that a particular failure can have with respect to a specific analysis criterion (for example, safety). Failure consequence combined with failure frequency is a measure of the risk posed by the asset failure.

Each criterion has associated failure consequences, and each consequence has a unique score. A consequence with maximum score indicates the worst case scenario. A consequence with no impact on the criterion is given a score of 0.

Probability of Failure

The rate at which failures occur or the likelihood that the asset will fail.

Relative Risk

Product of the probability of failure and the consequence of failure.

Relative Risk = (Probability of Failure) x Sum (Consequence of Failure Scores)

Term	Definition
Analysis Criteria	Business goals that assets are evaluated against during analysis. Typical criteria are safety, environment, quality, throughput, operating cost, and customer service. Each criterion is assigned consequences that have unique scores. The higher the score, the more critical the consequence of failure.
Asset Prioritization Analysis	Method of evaluating the impact of equipment failure on key business objectives. Standard criteria are used, which are based on business goals.
Consequence Priority	Result of asset prioritization analysis used by APM to identify which assets need to be worked on first. Consequence priority numbers are used to determine the impact of indicator alarms and to prioritize work activities. The consequence priority number is calculated using one or more rules that evaluate the asset’s consequence scores. For example, priority 9 might be assigned to an asset if its safety or environment criterion has a score of 38 or more.
Failure	Inability of the equipment to perform any function at the required performance level. Some corrective intervention is required to restore equipment capability.
Failure Consequence	The impact that a particular failure can have with respect to a specific analysis criterion (for example, safety). Failure consequence combined with failure frequency is a measure of the risk posed by the asset failure. Each criterion has associated failure consequences, and each consequence has a unique score. A consequence with maximum score indicates the worst case scenario. A consequence with no impact on the criterion is given a score of 0.
Probability of Failure	The rate at which failures occur or the likelihood that the asset will fail.
Relative Risk	Product of the probability of failure and the consequence of failure. Relative Risk = (Probability of Failure) x Sum (Consequence of Failure Scores)