12 h Wo ld Cong ess on Enginee ing Asse Managemen &
13 h In e na ional Con e ence on Vib a ion Enginee ing and Technology o Machine y
2-4 Augus 2017, B isbane, Aus alia
An app oach o quan i y alue p o ided
by an enginee ed asse acco ding o he
ISO 5500x se ies o s anda ds
Vicen e Gonzalez-P ida
1
, An onio Guillén
2
, Juan Gómez
3
, Adol o C espo
4
,
An onio de la Fuen e
5
Abs ac : The pu pose o any asse is o p o ide alue o he o ganiza ion and i s
s akeholde s. In Asse Managemen , he concep o alue encompasses quan i a-
i e and quali a i e, as well as angible and in angible bene i s ha asse s may
p o ide o an o ganiza ion. The de ini ions o asse and alue a e no only closely
linked bu also complemen a y. An “asse ” p o ides he means o he ealisa ion
o “ alue” hus he managemen o an asse is s a egic and has o be linked o an
o ganiza ion's alue no ms. This pape ex apola es om he de ini ions in ISO
5500x se ies o s anda ds o desc ibe a gene ic app oach o quan i ying he alue
p o ided by enginee ed asse s deployed by a business o ganisa ion.
1
Vicen e Gonzalez-P ida. (*)
Depa men o Indus ial Managemen , Uni e si y o Se ille, Spain.
e-mail: icen e.gonzalezp i[email p o ec ed]
2
An onio Guillén.
Depa men o Indus ial Managemen , Uni e si y o Se ille, Spain.
email: [email p o ec ed]
3
Juan Gómez.
Depa men o Indus ial Managemen , Uni e si y o Se ille, Spain.
email: [email protected]
4
Adol o C espo.
Depa men o Indus ial Managemen , Uni e si y o Se ille, Spain.
email: [email p o ec ed]
5
An onio de la Fuen e
Depa men o Indus ial Managemen , Uni e si y o Se ille, Spain.
e-mail: [email p o ec ed]
2 V. Gonzalez-P ida, A. Guillén, J. F. Gómez, A. C espo, A. de la Fuen e. - An app oach o
quan i y alue p o ided by an enginee ed asse acco ding o he ISO 5500x se ies o s anda ds.
1 In oduc ion
The pu pose o any asse is o p o ide alue o he o ganiza ion and i s s ake-
holde s (ISO, 2015a). In Asse Managemen (AM), he concep o alue conside s
all hose aspec s (ob ained o expec ed o be ob ained om an asse ) ha p o ide
any kind o bene i (exp essed in speci ic e ms) o he o ganiza ion (Sola e Al.,
2015). The de ini ion o bo h, asse and alue, a e complemen a y o each o he .
Indeed, asse and alue a e wo concep s closely in ol ed whe e he e is no sense
one wi hou he o he . In ew wo ds, he “asse ” is he ool o he ins umen o
ma e ializing he “ alue” expec ed by he company, and his ac encompasses he
company s a egic objec i es. Each asse mus be de ined and managed based on
i s link o he concep o he o ganiza ion's own alue (Sola e Al., 2015). The de -
ini ion o alue o each company / o ganiza ion, mus se e o de e mine and de-
sc ibe, accu a ely, he asse po olio o each o ganiza ion, answe ing he ques-
ions o wha hose asse s a e and how hey con ibu e o p ecisely achie e o
conse e his alue (IAM, 2010).
Asse managemen should be ounded in he alue con ol. Bu many imes he
alue concep is no ac i ely in eg a ed in he managemen ools, and only inan-
cial/economic a iables -only limi ed o cos mos cases- a e used o he con ol
and decision-making. The idea o alue is p esen in hese p ocesses, o cou se,
bu no in a o mal way nei he including objec i e e alua ion me hods. The chal-
lenge he e is o design a me hodology ha allows he quan i ica ion o such a al-
ue and i s e ec i e use in asse managemen . E en ISO 55000 , whe e he capi al
ole o alue has de ini i ely been pu on he able, does no add ess he alue
measu emen . The e ec i e con ol o alue, which needs he in oduc ion o al-
ue assessmen me hods, can p omo e g ea bene i s o he o e all o ganiza ion
managemen . (Lopez & C espo, 2010) h oughou his documen , a gene ic ap-
p oach o quan i y asse s alue is p esen ed, acco ding and aligned o he concep
de ined in he s anda ds ISO 55000 (ISO, 2015a; ISO, 2015b; ISO, 2015c)
In his con ex , i is needed a deep e ision abou he cu en use o alue as key
concep in AM including, o s a ing om, a philosophical discussion abou he
de ini ion o alue concep . Bu his goes g ea beyond he scope and he ex ension
in ended by his pape . Ne e heless, in o de o p omo e he discussion some e -
e ences ha e been included he e ha can be consul ed as a s a ing poin : C onin
e al. (2000) includes a e iew o alue, quali y and sa is ac ion concep s in se -
ices ma ke ing li e a u e; Ha ison e al. (2013) o e he s akeholde pe spec i e
on alue, d aw a en ion o hose ac o s ha a e mos closely associa ed wi h
building mo e alue o s akeholde s; Hei z e al. (2016) p esen a o mal model
o decision making in asse managemen , based on he gene al concep s o ISO
55000, in pa icula he no ion o alue ealiza ion; Ho mann e al. (2016) p esen
a use case o alue-based pe o mance measu emen concep in supply chains,
Campbell e al. (2016) p esen a gene al amewo k o Asse Managemen and
V. Gonzalez-P ida, A. Guillén, J. F. Gómez, A. C espo, A. de la Fuen e. - An app oach o quan i-
y alue p o ided by an enginee ed asse acco ding o he ISO 5500x se ies o s anda ds. 3
main enance whe e in e es ing alue- isk e e ences can be ound; Kaplan & No -
on, (1992) wi h he Balance Sco e Ca d hey de eloped, he ac , a p ac ical
me hod o aboa d he inclusion o app oaches di e en om economical aspec in
managemen o any kind o o ganiza ion, and in his sense, his is an e iden p e-
cu so o alue app oach; Allee, V. (2008) gi es a good app oach o alue analysis
o in angible asse s managemen . Among hese e e ences, o he ields appea oo
in addi ion o enginee ing and AM as economics ma ke , cus ome s udies, ma -
ke ing and in ellec ual capi al managemen e c. All hese a eas p esen mo e ma-
u e isions abou alue modelling and i s u ili y o managemen . These ields
ea his issue om di e en pe spec i es ha , somehow, can help o he enginee
and asse manage o build an own ision ha con ibu es o he e olu ion o AM.
The pape is o ganized as ollow: sec ion 2 in oduces he app oach o he alue
concep in an o ganiza ion ha summa izes he ision o his pape o he alue
de ini ion. This sec ion includes wo subsec ions: in 2.1 i is discussed he di e -
en be ween a nega i e assessmen o alue, o "loss o alue", and posi i e as-
sessmen o alue, o "gain o alue"; 2.2 gi es examples o unde s and he alue
assessmen s app oaches. Finally, conclusions a e summa ized in sec ion 3.
2 The Value Concep in an O ganiza ion
Since he publica ion o ISO 5500x, he e m Value has become he buzz wo d
in Asse Managemen (C espo & Sola 2016). Howe e , in he li e a u e e iew
canno be ound ye many con ibu ions dealing speci ically wi h he alue con-
cep o an o ganiza ion. In gene al e ms, alue is in ui i ely easy o unde s and.
Howe e , i s objec i e de ini ion is no easy o delimi , mo eo e , when he goal is
o es ablish me hods o measu emen ha allow he decision-making o be made in
e ms o alue (Amadi-Echendu e al., 2010). Basically, each o ganiza ion has o
de ine i s own alue concep . In o he wo ds, he o ganiza ion alue concep
(OCV) as a speci ic elemen mus include and desc ibe all he ele an compo-
nen s o he o e all alue iew o he o ganiza ion. A p ope y o alue is ha , i is
c ea ed du ing he ope a ion o he asse po olio. This means: Value is gene a ed
o e ime. Thus, alue is de ined mo e p ecisely as a alue s eam o alue c ea-
ion a e ( ). Fo example, a p oduc ion sys em ha p oduces i ems wi h a speci -
ic p oduc ion a e can be seen as gene a ing alue du ing i s ope a ion, and his
alue migh be exp essed in uni s “$ pe ime” (Hei z, Go en, & Sig is , 2016).
Ano he p ope y o alue is ha one ha can ypically be de ined jus a a po o-
lio le el, no on he single asse le el. In mos cases, a single asse as such has no
alue a all.
Conside , o example, an elec ical ans o me o an elec ici y supply ne -
wo k. Taken alone, his ans o me has no alue a all. I only c ea es alue as a
pa o a ne wo k, i.e. wi hin an asse po olio. Thus, i is qui e na u al (and o en
equi ed) o de ine alue c ea ion on he po olio le el (Hei z e al., 2016). The
4 V. Gonzalez-P ida, A. Guillén, J. F. Gómez, A. C espo, A. de la Fuen e. - An app oach o
quan i y alue p o ided by an enginee ed asse acco ding o he ISO 5500x se ies o s anda ds.
alue is implici ly ea ed in he de ini ion o he O ganiza ional Objec i es, hen
in he Asse Managemen Policy (AMP) and, inally, in he Asse Managemen
Objec i es (AMO) wi hin he SAMP (ISO 2015a). We say implici ly because al -
hough ele an in o ma ion abou he alue is p esen ed in hese desc ip ions he e
is no mo e men ion o alue once he objec i es a e in oduced. So he link wi h
alue assessmen o con ol is indi ec h ough Objec i es (OO and AMO). Wi h
he gene aliza ion o AM (no only limi ed only o ISO 55000) and suppo ing on
new in o ma ion echnologies he e ec i e assessmen o alue is now possible.
Value Componen s (VCs): The i s s ep is he de e mina ion o alue compo-
nen s. VCs a e hose gene al aspec s ha can be included in he alue de ini ion.
In o he wo ds, he alue can be exp essed h ough i s componen s. These compo-
nen s a e usually employed in he Objec i es desc ip ion. VCs can be: social im-
pac , o he s akeholde s’ impac , sa e y, en i onmen al, ope a ion/capabili y, p o -
i s, e c. Value componen s can include aspec s which a e e y di icul o e alua e
in mone a y e ms. Mos o he cases, almos any alue aspec can be ansla ed o
mone a y e ms. Bu many cases he models o do his a e e y complica ed and
hey a e no accu a e a all, p esen ing a g ea le el o unce ain y. Two aspec s a e
undamen al in he alue o indus ial sys ems.
Fo example, in he case o a ail oad sys em (UIC, 2016):
(i) The social o public se ice ela ed o he sys em in which i is in eg a ed.
Aspec s, such as u iliza ion, assu ed se ice imes, e c. ha e a di ec im-
pac on he li e o ci ies. This impac is no only on i s inhabi an s bu on
he a ac ion o isi s and in es men s. Public anspo is one o he
main image e e ences in any ci y;
(ii) The use sa e y: i is a key aspec in he exploi a ion o any means o
anspo . In he case o ail oad sys ems, sa e y is one o hei main ad-
an ages in on o any o he u ban anspo a ion.
Value Fac o s (VFs): in his second s ep, we y o ansla e he VC o speci ic
e m ha can be used by managemen app oach. The e o e, VFs a e de ined om
VCs, bu :
- A VF has a e y accu a e de ini ion.
- A VF can be measu e using speci ic indica o s.
- The measu e can be quan i a i e o semi-quan i a i e.
- A VF should be addi i e and scalable.
- One VF can include e e ences o one o mo e VCs (i.e. we can de ine
a unique VF o Secu i y and Sa e y).
- Each VF has a ela i e weigh o he Value composi ion.
- VF is ela ed o global op imiza ion poin .
Finally, he managemen objec s a e he asse s. We a e going o measu e and
ac o e he asse s o ge alue om hem. Asse po olio de ini ion, once alue
V. Gonzalez-P ida, A. Guillén, J. F. Gómez, A. C espo, A. de la Fuen e. - An app oach o quan i-
y alue p o ided by an enginee ed asse acco ding o he ISO 5500x se ies o s anda ds. 5
has been desc ibed h ough VC and VF is pa o OCV. I is also necessa y o de-
ine how each asse con ibu es o gain o o loss o alue.
Summa izing, he OCV include:
1. De ining he VCs (concep o alue wi hin he whole sys em ope a ion).
De e mining he key aspec s o he o ganiza ion / business s a egy and
how o exp ess hem in e ms o alue.
2. Designing ools o measu e and con ol he asse alue. Fo his pu pose,
Value Fac o s (VF) will be used. The VF allow o exp ess in measu able
e ms, all hose aspec s ha cons i u e he alue o a gi en business / o -
ganiza ion.
3. De ining asse s o he whole sys em. The de ini ion o alue de e mines
" o wha " he o ganiza ion needs o will use he asse s. Only on ha ba-
sis, i is possible o p ecisely de ine he asse s o an o ganiza ion. I ans-
la es (a a p ac ical le el), he s uc u e and asks ha include he own de -
ini ion and desc ip ion o he es ablished alue c i e ia.
2.1 Posi i e and Nega i e Asse Value Assessmen (AVA)
Es ablishing he OCV, he own concep o alue acco ding o he company o
o ganiza ion poin o iew, i is possible o de ine me hodologies o measu e he
alue. The measu es a e always ela ed o he asse . The asse is he elemen ha
p o ides alue. These me hodologies should be p e e ably objec i e and be in-
cluded in he decision-making p ocesses o he company. In gene al e ms, p o-
cesses can be classi ied as a s a egic, ac ical and ope a ional le el. This ision is
complemen ed by he ime ho izon conside ed in he decision making. Conse-
quen ly, me hodologies o he e alua ion o alue acco ding o he asse impac
o e he whole sys em p ocess and goals will be undamen al in any asse man-
agemen model. In ou app oach, alue is composed as commen ed by a se ies o
ac o s. These VFs can be used in wo ypes o me hods:
- Posi i e Con ol: Assessing he con ibu ion o gain du ing he asse
use ul li e. I can be he con ibu ed alue un il a speci ic momen o
he expec ed gain un il he end o he use ul li e.
- Nega i e Con ol: Assessing he alue educ ion o loss due o e en s
ha ha e caused a educ ion o he alue o i is o eseen hey will
cause an expec ed loss o alue. Failu es all in o his ca ego y. Each
po en ial asse ailu e has, as a isk consequence, a po en ial loss o
alue. This can ange om low impac o ca as ophic.
The sui able applica ion o hese me hods will depend on how he VF is de-
ined. The posi i e con ibu ion, o ins ance, may be calcula ed conside ing he
con ibu ion o asse a ailabili y in e e ence o he whole sys em a ailabili y, in
o de o ob ain an expec ed p oduc ion o gain. The nega i e con ibu ion may be
calcula ed om c i icali y assessmen o he speci ic asse . Bo h, posi i e and neg-

6 V. Gonzalez-P ida, A. Guillén, J. F. Gómez, A. C espo, A. de la Fuen e. - An app oach o
quan i y alue p o ided by an enginee ed asse acco ding o he ISO 5500x se ies o s anda ds.
a i e e ms, will depend on he na u e o he asse i sel , bu also, on he asse loca-
ion h oughou he whole sys em con igu a ion.
2.2 Asse Value Assessmen me hod example
As commen ed, he e is no consensus o he de ini ion o he alue p o ided
by a physical asse . One op ion p oposed he e is o de ine ac o s simila ly o
hose used in he c i icali y analysis. C i icali y analysis is basically as me hodolo-
gy ha allows hie a chizing sys ems, acili ies and equipmen (asse s). Fig 1 ep-
esen s he esul s o eal C i icali y Analysis o indus ial plan in he Oil & Gas
sec o .
Fig. 1 Risk & Value based Asse C i icali y Analysis ma ix
Usually, i is measu ed simila ly o isk, aking in o accoun he equency o a
ailu e e en , and he consequences ha can be gene a ed when ha ailu e occu s.
Failu e equency is usually a measu able aspec (o he e a e da abases o o he
e e ence sou ces). On he o he hand, consequences e e o he e ec s in e ms o
cos s (ope a ing, en i onmen al, main enance, e c. cos s). I o en equi es a con-
sensus among expe s. The c i e ia o be ag eed would be, o example: Sa e y (a e
dange ous wo king condi ions o people? a e he e sa e y measu es?); En i on-
men (is he ailu e dange ous o he en i onmen ? a e he e con ingency
measu es?); P oduc ion (does he ailu e o ally pa alyze he plan ? i no , how
soon is i ope a ional again?); O&M Cos s (how much does i cos o e-
commission he equipmen ?). Ma hema ically, we could o mula e he concep o
c i icali y as:
Risk = Likelihood x Consequence
The e o e, c i icali y can be assessed h ough he es ima ion o loss o alue
when a ailu e e en occu s. Consequences can be measu es h ough a Value Fac-
0 0 107 0 0 0 0 0 0 0 0 2107
10 8 0 0 0 0 0 0 0 0 0 1,6 18
47 0 7 0 89 021 5 0 0 5 1,2 174
3965 581 590 136 172 37 63 49 3 7 61 15664
4022 589 704 136 261 37 84 54 3 7 66
Consequences 0 10 20 30 40 50 60 70 80 90 100
Pipes lines 0 0 0 0 0 0 0 0 0 0 0 0
Consequences 0 10 20 30 40 50 60 70 80 90 100
A e age
F equency
High F equency
Ve y High
F equency
Low F equency
0
1
2
0
1
2
0
1
2
0
1
2
0
4
0
4
0
4
0
3
4
0
3
4
0
3
4
0
3
4
0
4
MA
SI
MA
SI
MA
SI
MA
SI
V. Gonzalez-P ida, A. Guillén, J. F. Gómez, A. C espo, A. de la Fuen e. - An app oach o quan i-
y alue p o ided by an enginee ed asse acco ding o he ISO 5500x se ies o s anda ds. 7
o s accu a e de ini ion, independen ly om cos s aspec s. Mo eo e , i is im-
po an o conside he " alue" in e p e a ion gi en by s akeholde s o in e es ed
pa ies and, in he some speci ic cases, he alue obse ed by he use as an in an-
gible social bene i .
As an illus a i e example (and no in ended o be exhaus i e), he ollowing
igu e (Fig. 2) shows g aphically a alue quan i ica ion ela ed o an indus ial
case om he poin o iew o he sa e y dimension. This a p io i in angible di-
mension is o ced o be quan i ied as an accumula ion o days wi hou acciden s.
The heo e ical cumula i e alue in his case ep esen s he o al o days ope a ing
he sys em h oughou he whole li e cycle (35 yea s in his example). The To al
Li e Cycle Value (LCV) would ep esen he ealis ic beha iou o he physical
asse h oughou i s use ul li e. No acciden s would mean he achie emen o he
o al maximal alue o he asse , obse ed om he poin o iew o he sa e y
dimension.
Fu u e esea ch wo ks may be ocused on he de elopmen o simila examples,
al hough adap ed o he pa icula casuis y o he di e se scena ios unde s udy
and di e en dimensions o he concep o alue. Pa icula ly, ex ensions o his
con ibu ion may deal wi h he de elopmen o speci ic ma hema ical me hods ha
allow calcula ing he alue pe cep ion o an o ganiza ion in e e ence o a speci ic
asse , being such alue ansla ed in o nume ical quan i ies.
8 V. Gonzalez-P ida, A. Guillén, J. F. Gómez, A. C espo, A. de la Fuen e. - An app oach o
quan i y alue p o ided by an enginee ed asse acco ding o he ISO 5500x se ies o s anda ds.
Fig. 2 Example o Li e Cycle Value assessmen
3 Conclusions
As a conclusion, i should be emphasized ha physical asse s ha e usually been
managed by he depa men s o a eas dedica ed o main enance, being in cha ge o
he con ol o he ins alla ions as well as he epai and e ision wo k, in o de o
assu e he egula ope a ion o he se ice and/o p oduc ion, as well as p ese ing
he app op ia e s a e o he in as uc u es. Howe e , his ac i i y has e ol ed in
o de o each he cu en concep o AM by which i is unde s ood as: " hose co-
o dina ed ac i i ies in an o ganiza ion, in ended o ob ain alue om i s asse s"
(Sola & C espo, 2016). To his aim, wha has been p oposed in his documen is
an e icien app oach o ace he changing challenges in he indus ial sec o . Un-
de hese assump ions, he bene i s o implemen ing an AM model, wi h an in e-
g a ed app oach in o de o achie e alue h oughou he asse li e cycle, a e solid-
ly p o en in indus y, imp o ing se ice quali y h ough i s con ibu ion o sa e y,
human heal h and en i onmen al p o ec ion.
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526272829303132333435
Secu i y index in days
Yea s
To al LCV (accumula ed in days)
Theo e ical cumula i e alue
V. Gonzalez-P ida, A. Guillén, J. F. Gómez, A. C espo, A. de la Fuen e. - An app oach o quan i-
y alue p o ided by an enginee ed asse acco ding o he ISO 5500x se ies o s anda ds. 9
Acknowledgmen
This esea ch wo k was pe o med wi hin he con ex o Sus ain Owne (‘Sus-
ainable Design and Managemen o Indus ial Asse s h ough To al Value and
Cos o Owne ship’), a p ojec sponso ed by he EU F amewo k P og am Ho izon
2020, MSCA-RISE-2014: Ma ie Skłodowska-Cu ie Resea ch and Inno a ion S a
Exchange (RISE) (g an ag eemen numbe 645733 — Sus ain-Owne — H2020-
MSCA-RISE-2014); and he p ojec “DESARROLLO DE PROCESOS
AVANZADOS DE OPERACION Y MANTENIMIENTO SOBRE SISTEMAS
CIBERO FISICOS (CPS) EN EL AMBITO DE LA INDUSTRIA 4.0", Minis e io
de Economía y Compe i i idad del Gobie no de España, P og ama Es a al de
I+D+i O ien ado a los Re os de la Sociedad.DPI2015-70842-R, inanced bycon
FEDER (Fondo Eu opeo de Desa ollo Regional)
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