Week 4 - Consolidation Exercises

Question 1

Why is risk management important in asset management?

Answer 1

It allows an organisation to make forecasts for the future based on quantitative data, using the probability of risks occurring and the associated costs.

Question 2

In asset management, risk techniques and processes are used at different phases of an asset’s lifecycle. Identify two phases during which risk techniques and processes are used.

Answer 2

• At early decision making phases
• During asset lifecycle phases

Question 3

Discuss the importance of risk techniques and processes at early decision making phases.

Answer 3

Linked to ODM, will take into account project risk and PESTLE considerations.

Question 4

Discuss the importance of risk techniques and processes at asset lifecycle phases.

Answer 4

Linked to maintenance strategies to better inform decisions about whether assets need to be upgraded or replaced to ensure better performance.

Question 5

List six advantages of using a risk management technique in infrastructure asset organisations.

(9 possible answers)

Answer 5

• Safety
• Performance
• Cost effectiveness
• Quality
• Life cycle cost
• Equipment life
• Maintenance data
• Motivation
• Teamwork

Question 6

Describe the advantage of ‘Safety’ when using risk management techniques in infrastructure asset organisations.

(Statement then 4 points)

Answer 6

Greater safety and environmental protection due to:
- Improved maintenance of protective devices
- Systematic review of safety implications of failure
- Preventative strategies of failure modes
- Fewer failures as a result of unnecessary maintenance

Question 7

Describe the advantage of ‘Performance’ when using risk management techniques in infrastructure asset organisations.

(Statement and 4 points)

Answer 7

Improved operating performance due to:
- Emphasis on maintenance on critical components
- Extension or elimination of overhaul periods
- Shorter & more focused maintenance tasks
- Identification of unreliable components

Question 8

Describe the advantage of ‘Cost effectiveness’ when using risk management techniques in infrastructure asset organisations.

(Statement + 4 points)

Answer 8

Greater cost effectiveness due to:
- Less unnecessary routine maintenance
- Prevention or elimination of expensive failures
- Clearer operating policies
- Clearer guidelines for acquiring new technologies

Question 9

Describe the advantage of ‘Quality’ when using risk management techniques in infrastructure asset organisations.

(Statement + 4 points)

Answer 9

Improved quality due to:
- Better understanding of equipment capacity and capability
- Clarification of equipment set up spec and requirements
- Confirmation or redefinition of equipment operating procedures
- Clearer definition of maintenance task and objectives

Question 10

Describe the advantage of ‘Lifecycle costs’ when using risk management techniques in infrastructure asset organisations.

Answer 10

Reduced life-cycle costs by optimising the maintenance work loads and providing a clearer view of spares & staffing requirements

Question 11

Describe the advantage of ‘Equipment life’ when using risk management techniques in infrastructure asset organisations.

Answer 11

Longer useful life of expensive items due to an increased use of on condition maintenance techniques

Question 12

Describe the advantage of ‘Teamwork’ when using risk management techniques in infrastructure asset organisations.

Answer 12

Better teamwork brought about by the highly-structured group approach to analysing and addressing maintenance problems