Using RAM Modeling to Drive Value Through Better Business Decisions
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Tuesday, May 14, 2019
Companies are continually faced with competing priorities and limited resources, and, as a result, it's critical to drive value from the business decisions they make. With more focus on asset management principles, these decisions must be justified through demonstrated and quantified value to the business. With complex systems of equipment, such as a pipeline, determining the value of a project or proposed improvement can often be difficult to estimate—especially when considering an asset's lifespan. In such cases, a more systematic, data-driven approach may be required to predict value. RAM models are one such tool that can be used to achieve this. In this case study, we'll look at how RAM models have been developed and used at Enbridge Pipelines to identify and quantify the risks to throughput volume. The models include key equipment and operational events, along with specific throughput impacts and simulated long-range demand forecasts in order to prioritize the risks and focus resources toward capturing the best opportunities. When specific improvement opportunities (e.g., additional equipment sparing) are identified, alternate cases of the model can be created and the results compared to the base case to support decisions and justify projects. We'll explore some of the challenges we encountered during development and highlight examples of how this tool is being used to quantify value, as well as the approach taken to disseminate the information within the organization.