Asset Management plan for decommissioning valves
In the previous articles, we defined the life cycle of an asset and its generalities. We also explained the issue of manufacturing valves in the factory with the asset management model. Also, how to select industrial valves and related issues in industrial projects or infrastructure facilities using the asset management model was discussed. After that, we described the operation and maintenance stage. Obviously, like all constructions and equipment, industrial valves will experience wear and tear and may need to be taken out of the production / service cycle. In some cases, maintenance, renovation and extended life can return valves to the production / service cycle. It should be examined how asset management helps to summarize the technical and economic aspects of the issue so that the right decisions can be made about removal or rebuilding or replacing.
What are the important issues for deciding on the end of life of industrial valves and choosing the removal, renovation or replacement approach? Usually the following four issues are considered in the end-of-life period of industrial valves in production / service facilities and infrastructure:
1. Remaining life calculations
Industrial valves, like any equipment, are built for a certain lifespan and it is expected that at the end of the proposed life, that valve will be removed and an alternative solution will be selected. But in reality this is not always the case, the life of industrial valves can be shortened due to problems with the environment or the fluid inside it (such as corrosion), inefficient operation and poor maintenance, and they may experience failures at unexpected moments. Therefore, it is necessary to calculate the remaining life at certain time periods (such as every five years) and review the results. Usually axes such as achieving service level or nominal capacity or design for production or services, continuing support and future commitment of the manufacturer to supply spare parts and consumables, approval of technical inspection results for the health of the body and accessories, compliance with operating conditions and maintenance (start similar to post-installation operations) are the criterion for calculating the remaining life of industrial valves.
2. Life cycle cost calculations
Another important issue that is usually dis-cussed at the end of the life of an industrial valve is the review and calculation of costs. These calculations include the costs of the entire life of the valve from the time of purchase, installation, operation and maintenance and even the cost of removal and demolition. These costs are usually considered in two categories, direct and indirect. Direct costs are also divided into capital costs (capex) and operating costs (opex). Capital costs include purchase costs and overhaul costs that have the property of restoring and extending life, and running costs that are typically spent to maintain the performance and efficiency of the device, such as the cost of consumables and spare parts and the cost of contracting interest. Removal, technical inspection, maintenance and disposal. Indirect costs are also the costs incurred due to data failures in a company, such as the cost of losing all or part of a product / service. Costs of fire and loss of life and property, costs of environmental damage offenses and costs of losing social prestige level. In a life cycle cost management system, the question is always whether the operating cost is still lower than the investment cost to purchase and install a new or refurbished valve. When the answer to the question is yes, this indicates the validity of continuing to use the existing valve. But if the answer is no, it means that continuing to use the existing valve is no longer economical.
3. Technical and economic studies
If we conclude from the above two axes, i.e. remaining life time and life cycle cost calculations, that the valve has reached the ‘end of life’ moment, additional possibilities should still be considered and suggested. These options are usually renovation, replacement or removal. Reviewing technical and financial calculations will enable the desired option to be selected and proposed. From a technical point of view, these issues usually include current and future production conditions, new technologies, energy efficiency, operability, maintainability, safety and green environment. In the economic sector, the costs associated with any choice in the period of revitalization for an old valve or the purchase of a new valve is examined.
4. Definition and implementation of replacement, renovation or removal project
Even if technical and economic studies suggest possible options, organizations may not be able to accept and implement all of them right away. This situation therefore requires advance planning in the form of a project. The necessary preparations include drawing up a time-line, forecasting the budget, preparing the description of services and the text of the necessary contracts, calling and selecting the contractor, appointing the project manager and preparing the list of necessary activities. This will ensure the proper completion of the project. This is why most organizations conduct the necessary studies years before the end of the life of an industrial valve to have ample opportunity to properly define a replacement, renovation, or removal project.
The last action of the life cycle of an industrial asset is its disposal period. In this period, by reviewing and studying the remaining life and the cost of the life cycle and technical and economic justifications, options for removal, renovation or replacement, even if proposed and implemented in the form of planned projects, will be implemented.
In this regard, the asset management system makes the relevant decisions systematically and for the benefit of the organization, including: continuing production / services, reducing the risk of additional costs, avoiding the personal preferences of human resources and performing timely planned activities to prevent unbearable or undesirable situations.
To be continued……
Mr. Sardroudi has planned seven articles about asset management of valves, as follows:
1: Introduction and overview
2: Requirements of an asset management system for valves
3: Asset management plan for the manufacture of valves
4: Asset management plan for engineering, design and installation
5: Asset management plan for valves during operation
6: Asset management plan for decommissioning valves
7: Valve asset management assessment and auditing
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