Facility Management Triage

Transcription

1 5 November, 2010 Facility Management Triage A Risk-Based Approach for Identifying & Prioritizing Maintenance & Repair projects Albert Antelman, Senior Fellow Institute for Responsible Infrastructure Stewardship ciat99@yahoo.com

2 What is Triage and how can it be applied to FAM? Triage is a French word meaning sorting[1] and is used by emergency medical personnel to ration limited medical resources when the number of injured needing care exceeds the resources available. The concept can be adapted and used by facility managers to identify and rank projects that should be funded before others, as well as projects that should receive little or no funding (abandonment). This process may have ethical implications since unstudied abandonment would be contrary to the principles of stewardship. This process involves identifying and accessing risk. [1] Definition found at

3 Introduction Facility Asset Managers have a fundamental responsibility to safeguard highly valued capital assets. Uncertainty and risk are inherent in the management of facilities, therefore a successful facilities asset management program must balance risk with opportunity. Operational Risk Management (ORM) provides a logical process for identifying and controlling risk. This presentation will introduce the concepts of ORM and how they can be applied and used by Facilities Asset Managers to reduce the potential for loss.

4 Why is Risk Management Important?... The budgetary process was driven largely by top-down targets, rather than by an analysis of the risks. CEO of U.S. Chemical Safety Board in testimony before the U.S. House of Representatives May 16, Prudhoe Bay Pipeline Leaks 2002 BP execs reject $2.5 PM program 2006 Leaks & spills cut production in half, lead to huge fines & repair costs To date, $250M pipeline replacement

5 Consequances of Avoiding Risk Mangement

6 The Solution Integrate the Principles of Operational Risk Management (ORM) into the Facility Asset Management (FAM) Decision making process. ORM is a systematic way to manage risks so that you increase the likelihood of a successful mission and minimize losses. The ORM process involves identifying and assessing hazards, controlling, and making risk decisions. ISO 31000:2009

7 ORM Principles Can be Applied to FAM Accept Risk When Benefits Outweigh the Cost The goal is not to eliminate risk, but to manage the risk Accept No Unnecessary Risk Only take risks that are necessary Anticipate and Manage Risk by Planning Risks are more easily controlled when they are identified early Make Risk Decisions at the Right Level The prudence, experience, judgment, intuition and situational awareness of leaders directly involved in planning and execution are the critical elements in making effective ORM decisions.

8 ORM vs. Traditional ORM Approach Traditional Approach Proactive Systematic Integrates all type risks Common process terms Decisions based on risk Reactive Random Risk is afterthought Non-standard terms Can Do despite risk

9 ORM Terms Risk An expression of possible loss associated with a specific hazard in terms of probability of its occurrence and severity of consequence if it does occur. Hazard A condition with the potential to cause personal injury or death, property damage or mission degradation.

10 What is the Risk? Catastrophic High Winds (161 k/h) Predicted High SEVERITY 1000 M None Low Unlikely PROBABLITY Certain

11 FAM Metrics Severity Potential degree of loss: Impact to Mission Mission Dependency Index (MDI) - Best Practice Recognition: ASCE, GSA, and IFMA Probability The likelihood of the occurrence of an event: Condition Index (CI) - A low condition index would increase the probability of a failure or shutdown.

12 How do we measure Severity (Mission Impact)? Mission Dependency Index (MDI) A simple and easy to use risk severity based metric that links facilities to mission. Provides a quantitative score normalized over a scale from 0 to 100, with higher scores representing high mission dependency. Relies on a structured interview process that captures the experience, judgment, intuition, and situational awareness of leaders having authority over operational and facility decisions. User: United States National Aeronautical Space Administration (NASA) + Other Government Agencies

13 Possible Difficult Impossible Hong Kong Chapter MDI is a Severity Metric Critical Relocatability Low Year Month Week Day Min. Sec. $ $$ $$$ $$$ $$$$$ Interruptability

14 Installation Example Critical Significant Relevant Moderate Low

15 Best way to measure probability of failure? BUILDER Knowledge- Based Condition Assessment Tools Standardized visual surveys collect risk-based distress data for scheduled component sections Life Cycle Model computes & constantly updates CI for each component section CI Component Section CI Economic Model rolls up component section CIs to CIsfor components, systems, buildings, & building groups Cl C Cl M&R CONDITION INDEX Cl T CURRENT CONDITION BEST M&R POINT TIME TO PLAN M&R TERMINAL CONDITION (often the typical M&R point) REMAINING SERVICE LIFE (RSL) Knowledge-Based Inspection Model optimizes survey schedule based on current CIs and risk tolerances Constantly updated CIs used as basis of BUILDER processes for facility asset management TIME Engineering Research and Development Center (ERDC-CERL), Champaign, IL, developed CI as a key element of the BUILDER process for facility condition assessment and capital planning.

16 Simple Decision Support Tool 100 Catastrophic 90 What is the risk? MDI Severity Project Project-3 Project-1 10 None Unlikely Certain

17 < < < < < < < < < < < > > > > > > > > > > > Hong Kong Chapter FAM Importance Matrix FM Triage OPERATIONAL RISK CALCULATOR HI S E V E R I T Y ASSET PRIORITY MDI INDEX RISK Severe High Elevated Guarded Low LO Condition ASSET CONDITION Index INDEX Low <<<<<<<<<<<<<<<<<< PROBABILITY >>>>>>>>>>>>>>>>>>>> High FAILED Reference: Nigel Slack, The Importance-Performance Matrix as a Determinant of Improvement Priority Int. J. of Operations And production Management, Vol. 14, No. 5, pp 59-75,

18 Closing Thoughts Risk can never be eliminated, therefore we need to develop strategies to manage risk Risk = Probability of Failure x Severity of Impact Seek process transparency Transparency Breeds Self-Correcting Behavior

19 Recommended Reading