Conducting an Asset Criticality Assessment
“Asset Criticality Assessment” is the process of evaluating an asset’s business impact and ranking it based on its relative business impact. This enables the business to prioritise its efforts towards the assets that will have the greatest return.
AMCL adopts the Total Cost of Ownership approach in assessing Asset Criticality
Organizations can adopt several approaches to determine asset criticality depending on whether they are focusing on operational and business impacts based on the total cost of ownership approach. A total cost of ownership approach enables organizations to evaluate the financial impact throughout the asset lifecycle and prioritise decisions accordingly. By doing so, organizations can allocate resources more effectively, ensuring that high-criticality assets—those with the most significant business impact — receive the necessary attention.
Understanding Asset Criticality enables organizations to:
- Improve Service Efficiency and Reliability by prioritising maintenance and resource allocation, ensuring critical assets remain operational and minimizing service disruptions.
- Utilize Resources More Effectively by directing financial, human, and material resources to where they are most needed, reducing waste and inefficiencies.
- Optimize Maintenance Strategies by enabling risk-based maintenance plans that balance proactive and reactive approaches to maximize asset longevity and performance.
- Improve Return on Investment by focusing on high business impact assets and increasing asset availability, reducing downtime costs, and maximizing financial returns on capital and operational expenditures.
Smarter Decisions through Asset Criticality and Health Indices
By understanding your most critical assets and the consequences of their failure, organisations can better assess risk and impact.
When integrated with insights from Asset Health Indices, which provide a comprehensive view of asset condition and future performance, asset criticality enables more effective, data-driven decision-making.
Learn More?
If you think your organization could benefit from conducting an Asset Criticality Assessment, please contact us!