Red Room - Session 14
3:30 to 4:30 p.m. Thursday April 23, 2015
Remaining Life Analysis: What to Invest, When and Why?
Many infrastructure systems and chemical plants in the Benelux countries have now exceeded the lifespan they were designed for. Their owners ask which actions and investments are needed to keep operating the systems safely and economically. Many organizations need to reduce costs, and capital costs often make up a big part of the total operational cost, so a good approach can save a lot of money. Because large investments are concerned, the organizations need investment forecasts that go beyond the five years that are now often used.
A remaining life analysis combines risk analysis, technical analysis and economic analysis to answer these needs. The risk analysis determines what the critical assets are that can cause unacceptable incidents or accidents and how to prevent these. The economic analysis determines the moment for replacement that minimizes the total of capital costs and operational costs. An actual analysis of some systems in the Netherlands is used to demonstrate this approach. It turns out that many systems can outlast their designed life, but some actions are needed.
Key Words: Remaining Life Analysis, Investment Plan, Economic Analysis, Risk Analysis for Large Systems, Life Cycle Costing
Martin van den Hout
Egemin Consulting & Services