Risk Management of Physical Assets Supported by Maintenance Performance Indicators

Abstract

Many asset-intensive organizations implement risk management strategies to mitigate potential hazards associated with physical asset failures, such as infrastructure deterioration or mechanical breakdown. As these physical assets’ risks can be treated with maintenance activities, properly evaluating the performance of maintenance management is of interest for risk management. Accordingly, this paper proposes a framework for the determination of Maintenance Performance Indicators (MPIs) to support the risk management of physical assets. The proposed framework included four main processes: Integrate performance evaluation guidelines, Review the maintenance management strategy, Define the performance indicators, and Assess maintenance across the MPIs. The ISO 55000 series for asset management and the Balanced Scorecard (BSC) approach were the guidelines considered. The ISO 55001 standard provides three assessment domains for performance evaluation: asset portfolio, asset management, and asset management system. The BSC approach identifies four performance evaluation perspectives that were integrated to address the requirements of one of these asset management domains. Then, the MPIs were defined for each of the performance evaluation domains in line with the maintenance management strategy toward the risk management of physical assets. Through a case study, the proposed framework was demonstrated considering the operational context of a Brazilian hydroelectric power plant. As a result, the proposed framework was shown to be consistent in systematically determining the MPIs that support risk management in organizations.