Effective Asset Investment Planning for Sustaining Capital Projects - A Case Study for Steel Manufacturing Operations
(Room 103C)
09 May 17
2:30 PM
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3:00 PM
Tracks:
Lowering the Cost of Maintenance & Reliability
Hatch developed a process to optimize capital spending within tolerable risk levels based on the principles of condition-based risk management. Salient features of the program include decision tree analysis, decision models to improve consistency of decision-making, benchmarking within asset classes, review of project maturity and estimate quality, asset condition assessment to assess ongoing operations risk, and portfolio scheduling techniques to prioritize projects. NLMK retained Hatch to improve capital allocation, offer alternate technical solutions, and propose improvements to the decision process and risk criteria. This was applied for 244 mid-range capital projects. The program was successfully delivered with indicative savings of ~ 20% in delayed capital spend and ~15% reduction in capital requirements.