4 Steps to Asset and Risk Management Integration for Mining Companies

maintenance management systemThe increasing international competition, global recession, and market consolidation have forced mining companies to consider several strategies to achieve their financial goals. To stay competitive, they must learn to reduce operation, maintenance, and capital replacement costs, and lessen consequential expenses associated with unexpected failures. One way to do this is by combining asset and risk management strategies.

Combining your asset management software and preventive maintenance system helps you allocate capital and maintenance resources to the right asset at the right time. This leads to streamlined operations, fewer failures, and better promotion of safety throughout the organisation.

Here are the steps to integrating asset and risk management program effectively:

Understand Regulatory and Organisational Objectives

Assessing risks starts with understanding your organisation’s objectives. Quantify objectives in terms of promoting health and safety, optimising revenue, minimising downtime, and reducing environmental impacts. It’s also important to have knowledge of regulatory, legal, and national requirements of the industry.

Collect Important Information

Use a data management system to collect information about your assets, such as the age of machinery, material type, and the construction and service records. There are systems and programs available that you can use to organise and analyse important data. Asset management systems give you a high-level view of your inventory while allowing you to gather data for individual assets.

Develop Asset Performance Criteria

Establish specific criteria that let you to continuously monitor actual asset performance. Machines, systems, and equipment that failed to perform at a pre-determined level pose a risk to reaching the organisation’s objectives, so consider replacing or upgrading them.

Assess Failure Probabilities

Understanding how assets may fail is an important component of any asset and risk management program. It allows you to place failure probabilities according to an asset’s condition, age, and performance criteria. Rank the assets according to risk after assessing failure probabilities and consider the level of attention each requires.

The mining industry is challenged by economic factors, and one of the best ways to stay competitive is integrating asset and risk management strategies to improve operating efficiency while controlling cost.