Concepts Settings Suggested Failure Consequences In asset prioritization analyses, failure consequence identifies the impact that a particular failure can have with respect to a specific analysis criterion (for example, Safety). Each of the failure consequences for a specific criterion is given a numeric value that is used to quantify the consequence. For example, a safety consequence might be that multiple fatalities could occur in the event of a failure. Another consequence might be minor injury such as a contusions and lacerations. The multiple fatality consequence would be given the maximum score of 40, while the minor injury would be given a score of 20. If there would be no injury in the event of failure, the consequence would have a score of 0 (zero). The following table lists the suggested failure consequences: Criteria Score Consequences Safety 40 Multiple fatalities 38 Fatality 34 Disabling injury 30 Lost time injury 20 Minor lost time injury 16 First aid 0 No injury Environmental Impact 40 Potential for severe environmental damage 32 Potential for major environmental damage 28 Potential for significant environmental damage 20 Minor or no environmental impact 0 No accidental release or emission Quality 10 Scrap - cannot rework or be sold as secondary product 8 Out of specification, with rework can be sold as second at little or no profit 6 Out of specification, with rework can be sold as prime 5 Out of specification, can be sold as seconds 4 Out of specification, can be reapplied to other prime order 2 Production within specs but process out of control 0 Process remains in control Throughput 10 Unable to recoup loss to attain production quota – must reduce future order bookings 8 Cannot make up lost production within plant – have to purchase outside material or service 6 Lost production can be recovered within plant but at additional cost since no excess capability is readily available 4 Can recover lost production through readily available excess capacity but is a significant impact on buffer inventory levels, putting other operations at risk of delay in supply 2 Lost production has no significant impact on buffer inventory levels 0 No lost production Customer Service 10 Loss of customer and/or potential litigation 8 Customer experiences downtime or excessive scrap loss, costs charged back 6 Late delivery of majority of order quantity or customer rejects product as delivered 4 Partial late delivery 2 On time delivery but minor impact on order quality or quantity that the customer is willing to accept 0 Quality, quantity, and delivery date as promised to the customer at the time of order placement Operating Cost 10 Incur increased costs of more than $500,000 8 Incur increased costs of more than $100,000 but less than $500,000 6 Incur increased costs of more than $50,000 but less than $100,000 4 Incur increased costs of more than $10,000 but less than $50,000 2 Incur increased costs of less than $10,000 0 No increased operating costs incurred
