Value based maintenance

Value-Based Maintenance

By Marius Basson

I was recently asked about value-based maintenance, and it made me think about what we do every day for our clients – it is exactly that!

The Aladon Network is the global risk and reliability network that specializes in RCM-based methodologies applied to physical assets in all industries and endeavors known to mankind. What’s considered an asset? The International Standard for Physical Asset Management (ISO 55000) defines an asset as: “An item, thing or entity that has potential or actual value to an organization.”

Aladon and our vast network of partners assist customers every day by adding value to their assets using RCM, a group-based approach.

Our focus is on preserving assets’ functions and associated performance standards, which enhances the assets’ value to the organization. In the end this adds value to all of an organization’s stakeholders, owners and shareholders. In order to preserve asset functions and value, assets need maintenance and may require periodic engineering modifications. By applying RCM3, these functions are incorporated into the business operating context and preserved in the most cost-effective manner in three ways:

1. Physical Risk Mitigation: When it comes to health and safety, RCM3 requires risk mitigation strategies that reduce safety risks to within tolerable levels (as defined by the organizations risk management framework). These strategies include maintenance and one-time changes. The value of these strategies is measured both in monetary terms and in how well they protect the people and society as a whole.

2. Environmental Integrity: Similarly, when environmental integrity is concerned, RCM3 treats the environment with the same level of importance as people’s health and safety. It is absolutely no longer tolerable nor acceptable for organizations to harm the environment. Protecting the environment has become top priority and valuable for generations to come.

3. Operational Capability: Although organizations are preoccupied with safety and protecting the environment, it is the operational capability that makes organizations valuable and profitable. Maximizing value can only be achieved when assets perform to their full potential. In turn, this means maintaining assets properly – at the right time and in the right way.

RCM is the only process that can preserve assets’ functions cost effectively and safely. The value of applying RCM3 to an organizations’ critical assets is apparent by its definition:

RCM3 is a process used to define the minimum required safe amount of maintenance, engineering and other risk management strategies to ensure the minimum tolerable level of safety and environmental integrity and cost-effective operational capability as specified in the organization’s asset management system.

RCM3 provides value and addresses value-based maintenance directly, benefiting everyone involved. The value of protecting people and the environment goes beyond monetary terms. Responsible organizations are more profitable and sustainable and it shows in the stock price and shareholder value.

Aladon provides a suite of risk and reliability-based methodologies supported by world-class software, that has helped organizations globally for more than 30 years to identify the risks and best strategies for building resilience. 

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