Condition Assessment - Remaining Life Assessment and

Asset Life Information Management

This document describes two important methodologies for improving asset life-cycle management. The first
is the Condition Assessment methodology for determining remaining asset life and the second is the Asset
Life Information Management methodology which is used to manage information pertaining to the life-cycle
of assets - design integrity, operational capability, asset maintenance strategies, obsolescence and other
important decision support information. The following paragraphs describe these two methodologies in
more detail.
Of note - it is possible to perform a Condition Assessment without performing a complete Asset Life
Information Management (ALIM) review but it is not possible to perform an ALIM study without doing a
Condition Assessment first.

1. Condition Assessment Process - Remaining Life

Assessment
Condition Assessment is a key tool for helping discover important information to optimize asset utilization
and decision support, ranging from capital planning to refurbish or replace decisions.
Through its use, organizations can greatly improve their ability to make knowledgeable, fact-based
decisions for preserving assets (through maintenance); renewing assets (through replacement); or
upgrading those assets for longer life (refurbishment). Using the Condition Assessment with Asset Life
Information Management provides a holistic view of the risks associated with operating assets.
Why Perform a Condition Assessments?
Condition assessments can be performed for a variety of reasons. The outcome of the Aladon Condition
Assessment process will assist organizations to:
 Identify high-risk assets and identify proactive mitigation strategies
 Improve capital budgeting and long term planning
 Improve repair / replace decision making (asset strategies)
 Modify remaining life and obsolescence decisions
 Modify or adjust failure management strategies (maintenance tasks)
 Modify operating parameters based on capabilities
 Avoid costly unplanned breakdowns and obsolescence through improved planning
 Better inventory planning and management
 Improved Fleet management
Calculating Remaining Life of an Asset
Asset condition assessment can determine if an asset is fit for service or whether it needs special attention.
The assessment can determine whether maintenance can preserve the asset function(s) and ensure that
important performance standards are met – if maintenance cannot (based on the condition of the asset),
then the remedy might require asset replacement or refurbishment.
For this purpose, Aladon recommends performing condition assessments on the systems and assets that
have been in service for a long time, in some cases still operating beyond their useful life (as specified by
the manufacturers). The Aladon Condition Assessment methodology consists of two distinct processes, a
qualitative assessment (through interviews and observations) and a quantitative assessment (data
driven evaluation and simulation). The two assessment processes can be done simultaneously or
consecutively.

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The Condition Assessment methodology includes the review and analysis of the information and data
collected in the two assessment processes (qualitative and quantitative) to determine or estimate remaining
life.
The Aladon methodology involves structured workshops, where staff experienced in operating and
maintaining the assets assign condition grades for individual or groupings of assets with similar
characteristics (location, age, material, etc.). A more sophisticated asset condition scoring process (i.e.
testing) may be required to rank asset groups that achieve a poor level during the assessment.
The results of reliability improvement program (such as RCM) that do not consider the current state or
process variations may lead to ineffective and costly maintenance. For this reason, an assessment is an
important step – incorporating its results into the broader asset risk evaluation can help organizations make
knowledgeable, fact-based decisions about the condition of assets and infrastructure. The information can
be used to target high-risk assets during asset replacement planning – mitigating risk and obtaining the
most return on investment.
To best determine the remaining safe and economical operating life of assets a comprehensive condition
assessment survey of critical assets must be developed. This would typically include:
 Civil and Structural Assets (Buildings, Bridges, Foundations, Structures, Stadiums, Reservoirs, etc.)
 Mechanical Rotating Equipment (Compressors, Pumps, Centrifuges, Engines, etc.)
 Mechanical Static Equipment (Pressure Vessels, Tanks, Valves, Supports, Cranes, Gantries, etc.)
 Piping (Pressure pipes, Non-pressure pipes, Insulation, Instrument tubing, drains,)
 Electrical (Motors, Generators, Transformers, Switchgear, etc.)
 Instrumentation (Control Systems, Alarms, Controls, Valve controllers, Gauges, etc.)
Develop Templates, Weighting Criteria and Priorities
The Condition Assessment process requires assessment templates to be created (imported from software
library) for all the assets that will be assessed. Once the templates are created, the review group will
review the criteria for each asset. An example of a Pump template is shown in figure 1.

Figure 1: Typical Pump Template (for illustration only)

Not all assets are equal and not every failure mode or mechanism have the same consequence and
effect. Based on severity, certain criteria will weigh more than others and may even be considered an
overriding criterion which will outweigh any other criteria (i.e. leaking fuel pump seal). When the
assessment templates are developed, review group members will determine the weights (priority) of the
different criteria.
 Develop and approve weighting criteria for assessment
 Develop and approve overriding criteria (where applicable)

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Data collection and site visits
Following the data template and questionnaire development, a systematic approach for field data collection
is followed. The data collection includes interviews with staff, supervisors, and management - cycled to
minimize disruptions to ongoing work and schedules. The data collection also includes a physical review
(observation) of the equipment in operation (if possible). This process involves a high-level of participation
as well as interaction with and support from O&M personnel and management to enable timely collection
and access to the asset(s). Drone and aero-surveillance technologies are used where it is impossible to
access and assess critical assets. Data collection is consolidated once all the criteria has been inspected
and assessed.
It is important to avoid impact to ongoing operations and all assessments must be coordinated to ensure
safe and effective reviews. Where possible, operations may have to start standby equipment to assess all
the assets in an area.
The following paragraphs describe the two assessment processes (Quantitative and Qualitative) in more
detail. The Quantitative Assessment requires data which is not always available. When data is not available
or when data integrity is questionable, the Qualitative Assessment will weigh more than the Quantitative
Assessment results.
Quantitative Assessment
There’s no way to facilitate a proper Condition Assessment or comply with strict compliance standards if
the data being stored is not known or accessible. A quantitative assessment maps and classifies the asset’s
inspection and maintenance history and data to make it possible to map a dollar amount to a specific risk.
Quantitative Assessment Criteria:
 Age of the assets (install date)
 Duty cycles (operating cycles) and loading
 Operating within safe limits
 Number of trips and protective devices activated (if applicable)
 Operating performance standards (within design parameters and safety margins)
 Maintenance records and compliance
 Major overhauls past and future (if any)
 Modification and upgrades (if any)
The quantitative assessment may require interviews with subject matter experts and actual nondestructive
performance testing (i.e. vibration testing, thermography, oil analysis, dye penetration, etc.). The
assessment must also be verified during the field inspection and qualitative assessment process. It should
be based on accepted metrics, and should be agreed to by the stakeholders prior to the start of the analysis.
Typical metrics for considerations:
 PM schedule and compliance
 Operating protocols exist and are followed
 Maintenance strategy exist and is being followed
 Maintenance records are kept accurately
 Root Cause Analysis (RCA) performed on repeat failures where applicable
 Bad Actor Analysis (where applicable)
 Defect Elimination

The Quantitative Assessment is performed with information and data available from records in the WMS
and through interviews with subject matter experts.
Qualitative Assessment
Over time, as users of assets interacts with it and uses it, that asset will eventually start to show wear and
tear. Thus, an assessment should be done to inspect its physical decline and determine remaining life and

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the best persons to perform the assessment are the people who know the equipment best, the users and
maintainers.
A systematic approach is needed to determine when the asset may need rebuilding or replacing.

The Qualitive Assessment Process

Our process starts by asking several critical questions specific to the assets’ characteristics and failure
modes / mechanisms. This information goes into a template (example shown in figure 1), which is then
used in a working assessment, physical checks, performance tests (if required), and information from
O&M. The asset is inspected for leaks, corrosion, wear, physical damage, noise, vibration, evidence of
lubrication, dirt build up, etc. This assessment is done for three main reasons:
 To validate the data from the quantitative assessment (compliance)
 To grade the asset based on appearance and performance
 To grade the asset where no maintenance information is available
From the condition assessment results, the reviewer will be able to determine or adjust the remaining life
based on the physical condition of the asset. The basis for the assessment and remaining life adjustment
is the widely-recognized 2012 International Infrastructure Management Manual (IIMM) description of
asset condition criteria. Figure 2 shows the criteria from the IIMM.

Remaining Life
Rating Description of Condition
(%)

1 Very good condition. Only cyclic maintenance required 95

2 Good condition - Minor maintenance required plus cyclic maintenance 85

3 Moderate condition - Significant maintenance required 50

4 Poor condition - Significant renewal / upgrade required 15

5 Very poor condition - Unserviceable 5

Figure 2: Condition Assessment Criteria for Determining Remaining Life

The condition assessment allows for a systematic approach to estimating remaining asset useful life and is
a way of predicting when an asset may need rebuilding, refurbishment, rerate, replacement or retirement
(as defined in the Asset Life Information Management methodology). To refine the date of rebuild or
replacement, periodic condition assessments should be performed to track deterioration. In doing this, the
rebuild and replacement plan can be adjusted annually (or when reassessment is required) with the most
up-to-date condition data.
Overriding Criteria
Depending on the operating media, equipment type and criteria, some criteria may be overriding (have the
highest impact on remaining life) and regardless of the condition score of the other criteria, will be the
decisive factor for how remaining life is determined (i.e. leaking seals on a fuel supply pump). The overriding
criteria is decided upfront based on failure consequences.
Grouping
Where multiple pieces of equipment have similar design and performance requirements (i.e. piping, valves,
gauges and instrumentation), it may be required to group the equipment together and assess a sample of
the group. For piping, corrosion-loops may be used for grouping. For valves, grouping may also be
according to corrosion loop or function (isolation, control, check, etc.). For instrumentation, grouping may
be according to function (monitoring, control, protective, etc.).

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Qualitative Assessment Criteria
The first step in the qualitive analysis process is to determine the “as-is” or current condition of the assets.
To achieve this, a physical condition assessments is performed and “weighted” to determine a true
condition.
Aspects of the assets to consider include:
 Appearance (anything obvious i.e. leaks, corrosion, etc.)
 Performance and asset health (vibration, noise, etc.)
 Age of the assets (install date)
 Duty cycles (operating cycles) and loading
 Operating standards (within design parameters and safety margins)
 Environmental exposure impact (humidity, temperature, UV exposure, etc.)
 Maintenance records and compliance
 Major overhauls past and future (if any)
 Modification and upgrades (if any)
 Functionality and performance (do assets meet satisfactory performance standards), etc.
The assessment criteria are developed with the review group and for each type of equipment, various (and
different) criteria will apply.
Training of Participants
Informing participants early in the process of the project goals provides a high level of understanding and
context for what is transpiring during the assessment. Our experience shows that participation and feedback
are more positive if the team members slated to contribute understands the process and what is to be
accomplished, each participant focusing on the same areas of success and change. Not only does this
integration prevent the need for coaching individuals in review meetings (minimizing frustration between
group members), but it also reduces the overall time to conduct the assessments. These teams are normally
drawn from different groups of people depending on their expertise and knowledge of the systems and
subsystems. Seniority is not important but rather the individual’s knowledge of the assets under review.
For this reason, Aladon recommends that any assessment program starts with an executive overview (to
inform stakeholders and program sponsors of the benefits of the assessment process) and a 2-day
Introductory course to inform the assessment team (and potential facilitators) of the basic concepts. The
Introductory course teaches delegates the basic reliability principals and how to develop the templates and
assessment criteria.
Benefits and Outcomes
It should be noted that the purpose of an assessment is not to challenge any existing maintenance
philosophies (such as an existing condition monitoring strategy) but rather to provide an overview with
suggestions and recommendations wherein life of individual assets and subsequently that of whole plants
and facilities can be enhanced. The results of an assessment also provide information to create an asset
life extension plan and capital improvement program (CIP) planning. Annexure A describes that it is
however possible to use the information from the assessment to modify asset strategies and maintenance
plans.
The Aladon Condition Assessment methodology provides a structure to evaluate assets, plan and develop
an asset extension management system to address aging, deterioration, obsolescence, and other asset
life concerns to better manage future operations and maintenance practices.
The initial assessment provides a high-level understanding of the assets where the detail field assessment
determines remaining life based on operating conditions, events, maintenance interventions, corrosion,
wear or fatigue, or simple use and time.

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The assessment integrates various key elements of business and operations management systems to best
assess and manage the asset life following the process illustrated below (Figure-3) to create predictive
modeling and improve investment planning – one of the overarching goals of the assessment.

Figure 3: Condition Assessment and Remaining Life Assessment Process

Need for Remaining Life Assessment

Various plants and facilities in use exceed their original design/useful life. These facilities may have
undergone certain upgrades, replacements or repairs of aged equipment and obsolete systems on “need
basis”. This may be of concern since many of the assets have reached the design life as specified by the
manufacturers (some equipment is operating beyond expected life). Even though facilities operate within
design parameters, a current condition assessment can provide remaining life information and how to
effectively manage the assets going forward. Aging is a key element in the assessment, as is typical wear
and tear, deterioration patterns, erosion and corrosion, deteriorating performance, obsolescence
(equipment that is no longer viable, critical to operations, or even in use). This assessment will provide the
foundation for the next period of facility service - supporting important decision that may have to be made.

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2. Asset Life Information Management (ALIM)
Determining and calculating the remaining life of assets is a foundational element of the overall Asset Life
Information Management (ALIM) methodology. As described in this document, the objective of a Condition
Assessment is to determine the remaining useful life using the specific factors found to influence asset
behavior. In cases where the remaining life may be impacted by factors outside the initial assessment it is
important to create a real life, holistic model of the equipment, systems, subsystems or facility and then
simulate the asset “condition” and calculate remaining life for these assets based on the simulation output.
From this type of information, it is possible to make data-driven decisions to extend the useful life of assets,
in line with their criticality and organizational goals. In case direct data is not available data from similar
equipment at other sites or from an experience data base and industry references will be used. Other
information that is useful include the following:
 CMMS data (PMs, CMs, Modifications, Inspections, etc.)
 Manuals and Drawings
 Previous Studies
 Site Reports
 Standards and Specifications
 Vendor specifications and recommendations
 Unusual Events (Earthquakes, Floods, Storms, etc.)
To prioritize and focus the resources and efforts we recommend ranking the assets and infrastructure
(systems and subsystems) by the “relative risk” they pose in preventing the attainment of business goals
and secondly, prioritize the order in which these systems should be addressed. Achieving this requires
consensus among the team(s) - thus involvement to determine the appropriate prioritization. If an existing
priority ranking exist in the organization’s asset management system, it will be used (after review and
validation) as the basis for the asset prioritization. In practice, the right information must be collected from
the right people. The assessment and review group should include operations, maintenance, engineers,
planners and technology members; at the management, supervision and first line operations/ engineering
level. Additionally, vendors and original equipment manufacturer’s recommendations will be a valuable
input into the process to determine remaining life and life extension options.
An asset list must be agreed upon (because not all assets have to be assessed) and will be based on the
equipment criticality criteria. This encourages active participation by the stakeholders (management,
operators, etc.) as well, as they often know best where the critical assets sit within the context of the
business and the operations.
Develop Questionnaires and Data Templates
An integral element of ALIM is the creation of data template(s) – to store the data obtained during the study
– and a site-specific questionnaire for evaluating the condition of the equipment.
Asset Life Information Management (ALIM)
The following are important considerations during an ALIM study:
 Expansion plan: if any expansion or increase in throughput is planned.
 Changes in the feed composition: Latest composition and lab sample analysis data will be considered.
 Plant Production Profile: Most recent production profiles (throughput and flow rates) available will be used.
 Business plan evaluations to be considered for future equipment utilization (and capacity).
 Changes in regulations, legal requirements, codes & standards which has impact on the equipment/asset
life will be duly considered in the ALIM study.
 Equipment or systems identified as obsolete by the manufacturer would not need further assessment
although life but life extension options will be evaluated during the ALIM study.
 Return on Investment comparisons between repair versus replace options.
 Life extension period must be defined and agreed upon.
 OEM/ Vendor recommendations for obsolescence to be considered.

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 Any major interventions to be considered i.e. shut downs.
Assessment and Analysis Criteria
An initial step of assessing remaining life means an assessment of the current condition. Our reliability-
based Condition Assessment approach starts by developing the assessment criteria which is based on the
applicable failure modes and deterioration mechanisms for the assets under review. The assessment is a
complex task with a level of uncertainty influenced by different conditions. To determine the assets and
infrastructure that would benefit the most from a formal review approach, it is important to understand the
gaps between the assets’ current and new condition and gaps between current maintenance and inspection
programs and benchmark programs. The only reliable way to accomplish this is to review the data available
in the work management system (WMS) and compare it with Industry best practices.
A review of the critical asset includes the following:
 Review of the Operating Context to determine the exposure to elements and different operating
philosophies (loading and operating cycles)
 Review of current maintenance and inspection practices and asset strategies (proactive, reactive, run-to-
failure, etc.)
 Review of implementation strategies where applicable (maintenance, planning, work execution, standard
jobs, performance measurement, spare parts, corrective actions, logistics, etc. typically inherent elements
within in the WMS)
o Degradation mechanisms, their severity and patterns
o Identification of level (scale) of the asset degradation
o Imminent equipment failure
 Current Condition Assessment of Critical Assets and Infrastructure – to determine inherent reliability and
the level of effort required for extending life
 Initial Assessment, data review, plant-wide and holistic approach
 Identify urgent issues to elevate and track
Condition Assessment and Remaining Life
The Aladon approach to full life-cycle asset management covers inclusive assets on a site or in a facility
that impact performance and operations efficiency, safety, and reliability.
Thus, our approach is based on the principle of safe and effective use of equipment throughout its life while
meeting satisfactory performance standards (safety, integrity, throughput, etc.). The Operating Context
determines the deterioration rate and most likely failures that can be expected from the assets and will be
considered for the various types of assets being maintained.
Factors in the Operating Context include:
 Operating Environment and Environmental Regulations
 Safety Standards and Regulations
 Duty cycles (including redundancy and capacity)
 Demand (increasing or decreasing)
 Product and product quality standards
 Current maintenance and inspection strategy
 Redundancy
 Batch or Flow Process
The conceptual understanding of the factors that influence the asset behavior and the Condition
Assessment results will be used to determine remnant life and what needs to be done to preserve or extend
useful life.
The outcome from the remaining life assessment will provide asset life expectancy based on current
condition, maintenance, inspection and operating practices and reliability data. To preserve or extend the
useful life of the assets it may be necessary to recommend additional remediating actions or failure

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management strategies (operational and maintenance). From the assessment and data analysis, it is
possible to recommend for each piece of equipment under review the remaining life and life extension /
preservation options. The recommendations include the following options:

 RETIRE:
- Scrap and decommission equipment/system with/without replacement
 RE-RATE:
- Revise the role and live with the reduced performance for the remainder of the lifecycle; i.e. by
placing greater dependence on other systems
- Change operating practices, de-rate the duty, or make favorable modifications to process
conditions or chemistry.
 REPAIR:
- Analyze the margin between the equipment condition and minimum code specification
- Remove damage with/without repair; if necessary revise the role & performance STD.
- Repair the component temporarily with/without removing the damage
 REPLACE:
- Replacement with identical (like for like) or compatible (different type)
- Replacement with an asset of similar capacity
- Replacement with a larger capacity asset as part of strategic requirements
- Replacement with a smaller capacity asset because customer demands have reduced and are
unlikely to be increased
 RUN:
- Equipment technical integrity and performance are acceptable
- Revise the equipment performance standards and keep it running with close monitoring to
ensure that the revised performance standards are achieved in the long term and to identify
any terminal decline before it becomes critical
- Monitor the equipment to ensure that the extent and rate of the damage does not change
sufficiently to compromise Safety & Integrity limits
 REHABILITATE/RESTORE:
- Rehabilitate/refurbish existing equipment/systems, bring it back to its original performance
 RE-DESIGN/MODIFY:
- Modify existing equipment/systems to provide alternative means to fulfil equipment role or
reduce risk while the equipment/systems is brought back to full performance

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