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Understanding Criticality: Reduce Risk & Optimize Operations July 24, 2018 | Webinar Nicholas Willis, Program Manager Wichita State University, Environmental Finance Center www.efcnetwork.org This program is made possible under a cooperative agreement with the U.S. EPA.

Transcript of more on criticality presentation3 - Environmental Finance Network · 2018-08-27 ·...

Page 1: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Understanding+Criticality:+Reduce+Risk+&+Optimize+Operations

July%24,%2018%|%WebinarNicholas%Willis,%Program%Manager

Wichita%State%University,%Environmental%Finance%Centerwww.efcnetwork.org

This+program+is+made+possible+under+a+cooperative+agreement+with+the+U.S.+EPA.+

Page 2: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Asset%Management• Asset%management%is%maintaining%a%desired%level%of%service%for%what%you%want%your%assets%to%provide%at%the%lowest%life7cycle%cost.%Lowest%life7cycle%cost%refers%to%the%best%appropriate%cost%for%rehabilitating,%repairing%or%replacing%an%asset.

• US%EPA

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Asset%Management%Overview

• Five%core%components

• All%interact/overlap

• All%important

• Asset%Management%Planning%Strongly%Encouraged

Page 4: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Criticality)Overview• Criticality)assesses)risk• Probability)of)Failure

• Consequence)of)Failure

• Criticality)=)probability)*)consequence

• Focus)on)level)of)service)&)compliance

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A"few"words"about"risk• Ever%present

• Even*new*infrastructure*is*a*balance*of*risk*of*failure*vs.*costs*&*other*constraints

• Risk*cannot*be*eliminated

• Can*be*reduced/planned*for

Page 6: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Criticality)* GraphicallyCo

nseq

uence)of)Fa

ilure

Probability)of)Failure

Medium High)Risk))))))) Risk

Low))))))))))))))))))))))))))))))))))))))))))))MediumRisk)))))))))))))))))))))))))))))))))))))))))))))))Risk

Page 7: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Failure• How$have$assets$failed$in$past?

• How$can$assets$fail$in$the$future?

• What$can$reduce$the$probability$of$failures?

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Probability*of*Failure• Failure(does(not(mean(“broken”

• Answer:(“How(can(this(asset(fail(to(deliver(what(it(is(intended(to(deliver?”

• Examples(–• Environmental(Changes• Regulatory(Changes• Capacity(Loss/degradation• Power(Loss• Quality(or(Quantity(declines• Interaction(with(Community

Page 9: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Environmental,Changes• Common%occurrence%in%many%small%water%supplies

• Previously%compliant%water%source%is%polluted

• Nitrates

• Blue%green%algae

Image%from%KS%Dept.%of%Health%&%Environment

Page 10: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Regulatory+Changes• Maximum'Contaminant'Level'2018'='50

• Maximum'Contaminant'Level'2025'='5

• Your'treated'water'='25

• Attempt'to'ensure'new'infrastructure'meets'potentially'lower'limits

Page 11: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Capacity(Loss/Degradation• Equipment*no*longer*performs*as*designed• Often*slow5moving*problem

• Pipe*tuberculation• Pump*wear• Well*screen*clogging• Slow*meters

Image*from*Echologics

Page 12: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Power&Loss• Electrical)power)can)fail

• Site0specific)options• Do)nothing• Second)power)feed• Backup)generation

• Backup)generators• Mobile)– move)between)various)facilities• Permanent• Run)all)equipment)or)partial

Image)from)eBay

Page 13: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Quality(or(Quantity(Declines• Declining(water(tables• Decreased(pumping(rates• Increased(salt(content

• Surface(water(changes• Taste(&(Odor• Salt(levels• pH• Turbidity

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Interaction*with*Community• Systems'can'be'both'over'&'undersized,'leading'to'failures

• Growing'population• May'not'meet'water'demands

• Shrinking'population• May'have'stagnant'water• May'not'meet'financial'goals/policies

• Economic'&'technological'changes• Growth/decline'industrial'&'commercial'use• Most'uses'are'getting'more'efficient

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Redundancies• Redundant((Oxford(Dictionaries):• “able(to(be(omitted(without(loss(of(meaning(or(function”• “(of(a(component)(not(strictly(necessary(to(functioning(but(included(in(case(of(failure(in(another(component.”

• Is(not(only(“like(for(like”

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Partial'Redundancies• Recognize)if)repetitive)equipment)is)fully)or)partially)redundant

• Unknown)if)top)picture)is)fully)redundant

• Bottom)may)be)partially)redundant)(may)not)meet)service)levels)at)all)times).)• Are)all)pumps)the)same)capacity?

• What)is)required)for)peak)flows?

Page 17: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Partial'Redundancies• Generally• Limit,maximum,capacities

• i.e.,,1,million,gallon/day,drops,to,600,000,gal/day

• May,meet,average,demands• Plan,response,for,failure,in,peak,demand

• i.e.,customer,communication,– no,irrigation

• Leave,no,or,little,redundancy,after,first,failure

• Full,redundancy,may,be,economically,unfeasible

Page 18: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Non$“like$for$like”$redundancy$• Complex(water(systems(may(have(numerous(redundancies(that(are(not(like(for(like

• Examples:• Emergency(supply(interconnects• Elevated(storage(backs(up(pumping(units• “straight(pipe”(replaces(broken(meter• “Hand”(operation(on(control(system• Raw(water(supplies(with(varying(quality

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Criticality)– Graphically)with)redundancyCo

nseq

uence)of)Fa

ilure

Probability)of)Failure

Medium High)Risk))))))) Risk

Low))))))))))))))))))))))))))))))))))))))))))))MediumRisk)))))))))))))))))))))))))))))))))))))))))))))))Risk

Pump

Pump)w/redundant)

pump

Pump)w/storage

Pump)w/interconnect

Rebuilt)Pump

Page 20: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Using&Criticality&to&Inform&Maintenance

• General'theory

• Investment'of'time,'resources,'money'&'thought'should'be'guided'by'criticality'of'utility’s'assets

• Rethink'how'things'have'been'done

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Criticality)&)MaintenanceCo

nseq

uence)of)Fa

ilure

Probability)of)Failure

Maintenance)Important

30%)of)budget

Maintenance)Extremely)Important

45%)of)budget

Maintenance)Less)Important

5%)of)budget

Maintenance)Important

20%)of)budget

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Criticality)&)Maintenance)in)Practice• Valve&exercise• If&less&than&recommended&1x/yr,&have&more&frequent&exercise&on&critical&valves,&less&frequent&on&non:critical&valves

• Balance&with:• Known&condition• Outright&replacement&if&problematic• Known&end:life• Exercising&nearby&valves&while&there

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Criticality)&)Maintenance)in)Practice• Lubricated+items

• May+not+need+frequent/scheduled+lubricant+replacement

• Balance• Value+of+frequent+visits• Labor+costs• Time+spent+on+assets+with+known+end>life

• Consider+testing+of+lubricants+in:• Equipment+with+large+volumes+and/or+high+price• Equipment+difficult/dangerous+to+service

Page 24: more on criticality presentation3 - Environmental Finance Network · 2018-08-27 · Interaction*with*Community • Systems'can'be'both'over'&'undersized,'leading'to' failures •

Criticality)&)Maintenance• Whole&system• Generally&lack&maintenance&dollars&&&time• In&aggregate&maintenance&of&most&critical&assets,&not&most&critical&pump/valve,&etc.&is&important• Determine&where&maintenance&is&likely&to:

• Reduce&lifecycle&costs&to&utility• Detect&future&problems• Improve&emergency&response• Increase&knowledge&of&system• Maintain&desired&level&of&service

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Thank&you&for&participating&today.&We&hope&to&see&you&at&a&future&workshop!&

www.efcnetwork.org