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Generating project value through design for reliability: on the development and implementation of a potential value framework

By K. B. W. Woods

Abstract

The current trend to economically exploit deepwater hydrocarbon reserves is to reduce the capital expenditure; accomplished by deploying subsea equipment. The financial benefit afforded is offset by the risk of high operational costs associated with failure. Recognition of the life cycle cost implications of subsea reliability have led to the development of the reliability strategy. This strategy adopts a risk based approach to design for reliability where only analyses (and their subsequent recommended actions) perceived to add to whole project value are implemented. While life cycle costing has been developed to address through life cost, analyses are traditionally considered a source of cost accumulation rather than value creation. This thesis proposes a potential reliability value decision making framework to assist in the design for reliability planning process. The framework draws on the existing concepts of life cycle costing to explicitly consider the through life value of investing in reliability analyses. Fundamental to the framework are the potential reliability value index and an associated value breakdown structure intended as central decision support for decentralised decision making. Implementation of the framework is reliant on synergies within the project organization; including relationships between organizations and project functions. To enhance synergy between functions and dismantle some of the recognised barriers to implementing the reliability strategy an organizational structure, for projects, guided centrally by the reliability value framework is proposed. This structure requires the broadening of each project functions’ skill set to enable the value added implementation of the strategy’s activities. By widening the scope of application, the reliability analysis toolkit becomes the central guidance of the design process and awareness of the causes of unreliability and how they can be avoided increases. As this capability improves so the cost-efficiency with which reliability is managed in design (introduced as the reliability efficiency frontier) also increases

Publisher: Cranfield University
Year: 2007
OAI identifier: oai:dspace.lib.cranfield.ac.uk:1826/4660
Provided by: Cranfield CERES

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