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Developing Asset Health Indices

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Original date: 
Thursday, November 17, 2022

An Asset Health Index or AHI refers to analysis performed using various asset data to determine the state or condition of the asset. AHI can be used to better assess asset condition, used and useful life, progression toward potential failure, and failure probability. Further, using AHI can also enable the development of optimized maintenance and replacement strategies for assets using a set of objective criteria to assess the true health of the asset. However, entities vary widely in whether they develop Asset Health Indexes (AHIs) for their key assets. For those that do, there are marked differences in the level of rigour and sophistication employed in developing and applying AHIs for effective asset management decision-making. AHI calculations involve identifying and collecting data which may include a review of core asset attributes such as manufacturer, inspection data including field observations, destructive and/or non-destructive test data, maintenance data including historical records, operational records, and asset failure/refurbishment data. In other words, some are core inventory data, some work records, and some inspections or tests. This presentation will go through how to make the best use of asset SMEs and how you can start to develop useful AHIs from what you already know/have. Technically, the process begins with identifying the most critical assets and determining which can best benefit from AHI formulation development. The next steps are used to develop proposed condition factors (CF) and weighting factors (WF) that provide insight into the condition of the assets. Finally, CFs and WFs are used to develop a mathematical algorithm or formulas for the Health Index. We will also discuss how AHI can be used to develop asset management and maintenance strategies – the whole point of the data and analysis in the first place.

BoK Content Source: 
MainTrain 2022
BoK Content Type: 
Presentation Slides
Presentation Paper
Asset Management Framework Subject: 
03 Lifecycle Delivery, 3.06 Reliability Engineering, 04 Asset Information, 4.02 Asset Information Standards, 4.03 Asset Information Systems, 4.04 Data & Information Management, 06 Risk and Review, 6.00 Risk and Review General, 6.01 Risk Assessment & Management, 6.05 Assets Performance & Health Monitoring, 6.06 Asset Management System Monitoring
Maintenance Management Framework Subject: 
02 Maintenance Program Mgmt, 2.5 Asset ID & Hierarchy, 2.6 Asset Criticality Analysis, 04 Tools and Tactics, 4.1 Reliability Centered Maint., 4.4 Preventive Maintenance, 4.6 Condition Monitoring, 05 Maintenance & Reliability Engineering, 5.2 Reliability Modelling, 5.3 Failure Analysis, 5.5 Reliability Sustainment, 5.6 Relability Performance Measurement, 10 Continuous Improvement, 10.5 Asset Reliability Improvements
Author Title: 
Principal Consultant
Author Employer: 
Author Bio: 

Sachin has 14 years experience in consulting, project management, and engineering in the North American utility industry.
Sachin is an expert with the ISO 55000, ISO 31000 and the GFMAM/IAM 39 subjects specializes in Asset Management gap assessments, Risk Assessments, Reliability Analysis, Benchmarking, and Data Analytics & insight generation.
Sachin has excellent communication, strategic and analytic skills and has worked extensively in Electric, Water and Gas utilities, with publicly and municipal owned utilities, and across the generation, transmission and distribution business units.
Sachin has presented at multiple industry conferences including CEATI (2020), DistribuTECH (2020), American Water Works Association (2006, 2010 and 2011), Illinois Water (2006) and ISAWWA-IWEA Joint Water Conference (2006).
Sachin is a member of the ISO/TC 251/WG 9 - Data asset value evaluation index system Committee and has the IAM Certificate and the IAM Diploma with Distinction.