been identified and goals set for improvement programs

In some instances, moving in the direction suggested by Fig. 5 is not tiffany artainable or desirable due to circumstances such as market conditions, economics and so on. It is up to the individual generator to decide what level of risk is acceptable (that is, what direction they would like to move) and what needs to be done to get there.

Once opportunities have been identified and goals set for improvement programs, several different actions are possible for managing the risk toward the desired tiffany key pendant direction, any of which can yield the same improvement. (See Fig. 6.)

Severity (cost) can be reduced moving down the vertical axis, frequency (unavailability) can be reduced moving from right to left on the horizontal axis, or any combination tiffany jewelry on sale inbetween, yet the maintenance risk remains constant.

Solomon's experience suggests that seldom do companies reduce risk by reducing severity (cost) first, primarily because there tends to be an underlying frequency (unavailability) issue that is driving the higher costs. Cutting costs would likely only exacerbate the problem. Unavailability should typically be elsa addressed first, even at a higher, nearterm cost to allow the generator the best chance of reducing costs in the long term.Nonetheless, maintenance risk provides a means to address these issues and ser realistic targets for improvement.

Additional Applications

The initial development of our maintenance risk methodology was based on the premise that capital is deployed to reduce total unavailabihty. That premise is sound for base-load power plants, whose spark spread allows them to participate in the market most of the time.

For intermediate or peaking plants, the methodology holds true using forced outage rate in lieu of EUF.

An additional use of maintenance risk involves capital rationing. If the generation organization is forced to reduce overall costs, is it better to cut ail plants equally or cut proportionately with respect to maintenance risk and how it can be managed or incorporated? If existing practices have produced low cost and low unavailability, then funding for maintenance programs could likely be cut with less impact than cutting funding for high unavailability areas.

Maintenance risk is not complicated, yet its value is tremendous. In this regard, convincing engineers of its merits should be straightforward. As such, using maintenance risk facilitates the communication of the rationale, strategy and logistics of maintenance programs and improvements to all authences throughout the organization. In a series of a few figures, managers can quickly step from plant to unit to major system to quickly identify opportunities for potential improvement in the context of their peers and in support of their actions.