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Equipment failures cost the U.S refining industry over $4 billion per year and $75 billion in well integrity failures (Scott 2016).

Asset management is the systematic and coordination of systems and coordinated activities in which an organization optimizes and continuously manages their asset and asset systems to maintain their performances, reduces risks and costs throughout its life cycle- in contribution to the organization’s strategic plan (Ramasamy and Yusof 2015).

Complete Understanding of Assets

Achieving the optimization of an asset while maintaining a cost reduction strategy with a safe operation is a challenge that is faced by many businesses. Thus it is essential to have a clear understanding of your assets and the areas which should be focused on through reliable and precise asset performance data (Scott 2016).

The RBI Approach provides businesses a perspective of cumulative risks, deterioration mechanisms, and historical information to optimize and improve asset management strategies.

Knowledge Transferring

Problems in knowledge transfer from one person to another, through receiving documentation and records either from previous operators or existing operations and maintenance activities. This knowledge is critical in maintaining the safety levels in facilities as it identifies risks in the area.

Additionally, some operators commented that operating systems in their businesses are not interconnected, which may result in missing information, and these systems may not be able to function in cohesion  (Kusumawardhani and Markeset, 2014).


Data security is a growing fear in modern industries of today as technology is a burgeoning business practice. These threats extend towards company information and sensitive operational data – with the ever-increasing concern imminent in smart technology that relies on networks as data is transferred between internal and external users (Kusumawardhani and Markeset, 2014).  Data system integration challenge arising as another prominent concern in businesses dealing with asset data and other information involved in their processes- to deliver seamless information ultimately.

Besides data security, the importance of data quality and reliability is a growing issue, particularly in the oil and gas industry (Griffiths, 2012). The issue of data quality is pertinent as the quality of the data is highly dependant on the reliability and validity of data input, which may be potentially beneficial or deceptive.

Human Error

Studies show that 80% of significant scale accidents stem from both human and organizational error, with only 20% involved in technicality Lardner and Fleming (1999)

What are the major causes of significant scale accidents?

Figure 2.0 Impact of Human Error and Organizational Weakness on Plant Accidents.

Human error stems from a variety of sources that can be found across the literature. These vary from non-user friendly operational procedures to lack of experience (Bale and Edwards 2008). While some scholars attribute it to communication breakdown, lack of collaboration, and compliance as a challenge to asset integrity (Rahim, Refsdal and Kenett 2010).

The attitude of personnel involved, such as the managers, operators, and designers, also has a significant impact on asset integrity. If they were to perceive themselves above error, this would lead to a significantly higher chance of encountering issues such as lack of awareness, equipment errors, organizational weakness, risk management issues with inspection and maintenance, and importantly in health and safety assessments which may lead to critical incidents (Kletz 1988).

Understanding the possible challenges and factors in optimizing your asset integrity management is beneficial for your business in the long term.

Is your company looking to kick start your asset management strategy and processes? Are you looking for a user-friendly, intuitive software that is capable of managing your highly valued assets while being highly accessible across the vital departments?

Cygnus Asset Solutions proudly presents AXIS – the ultimate asset management software that provides automated live reports allows ease in asset data collection, and analyses asset conditions and risks, all in one database.

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Reference List

Bale, E.A., and D.W. Edwards. 2000. “Technical Integrity–An Engineer’s View.” Process Safety And Environmental Protection 78 (5): 355-361. DOI:10.1205/095758200530871.

Griffiths, Peter. 2012. “Information Audit: Towards Common Standards And Methodology.” Business Information Review 29 (1): 39-51. DOI:10.1177/0266382112436791.

Kletz, T., 1988. Learning From Accidents In Industry. London: Butterworths.

Kusumawardhani, Mayang, and Tore Markeset. 2015. “Asset Integrity Knowledge Management: A Case Study From The Petroleum Industry.” Operations And Supply Chain Management: An International Journal 8 (3): 146-153. DOI:10.31387/oscm0210152.

Lardner, R., and J. Maitland. 1999. “To err is human – A case study of error prevention in process isolations.” The Chemical Engineer 1(689):18-20

Rahim, Yousif, Ingbjørn Refsdal, and Ron S. Kenett. 2010. “The 5C Model: A New Approach To Asset Integrity Management”. International Journal Of Pressure Vessels And Piping 87 (2-3): 88-93. DOI:10.1016/j.ijpvp.2009.12.007.

Ramasamy, Jeyanthi, and Shari M. Yusof. 2015. “A Literature Review Of Subsea Asset Integrity Framework For Project Execution Phase.” Procedia Manufacturing 4 (1): 79-88. DOI:10.1016/j.promfg.2015.11.017.

Scott, Andrew. 2016. “Meeting The Growing Challenges Of Asset Integrity Management.” Hazardexonthenet.Net

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AXIS Software

Our proprietary asset management software is a user-friendly, intuitive, and web-based software. It is specifically designed to manage data collection and offers an efficient method in minimizing risk to critical assets. A valuable addition to your asset integrity process at any stage of your business.