Your Business Risk Hierarchy Dependency Stretches from Parts Microstructure Failure Root Cause to Business Disaster

This is the most important concept in Plant Wellness Way Enterprise Asset Management—there is a business risk hierarchy dependency that connects parts microstucture damage to business catastrophy

First parts fail, then machines stop. When machines fail, processes stop. When processes fail, production stops. When production stops, the business fails. All this because first a part failed. There is no consequent operating and business risk from equipment parts if they do not fail.


Slide 5 – No operating or business risks are possible from your plant and equipment if there are no parts microstructure failure event causes


This figure shows a business risk hierarchy dependency. Starting with a microstructure failure cause event, the risk sequentially progresses up the enterprise asset management hierarchy structure to its final business-wide impact.

Production and business risks from operating asset failure arise every time a cause of a component’s microstructure failure exists. There can easily be millions of failure causes active in organizations that have hundreds of operating assets, and certainly there are millions of failure causes possible in firms with thousands of physical assets.

For an operating asset to fail an assembly must first fail. For an assembly to fail a working part must first fail. For a part to fail its microstructure must be harmed. To damage the microstructure there must first be a failure event. The failure event occurs if first there is a starting root cause. Without the first root cause there is no microstructure damage, and there is no parts failure. The assembly does not fail, the asset does not fail, and the operating process is not forced to stop.

Plant Wellness Way EAM creates world-class reliability because it prevents working parts microstructures from failing. PWWEAM does that by eliminating the failure root cause event at the start of the business risk hierarchy dependency.

Physics-of-failure science tells us that equipment and machine parts fail because their microstructure is damaged or destroyed. When a component’s microstructure is at its least stress, in a healthy condition, with no causes of microstructure failure present, the part has its greatest chance to continue operating. Without a mechanism to cause harm to component microstructure, the part is not at risk of failing. Consequently, there is no risk to the assembly, there is no risk to the asset, there is no risk to the process, and there is no risk to the business.

This is the foundational concept in Plant Wellness Way EAM. Everything done to create world class reliable operating assets derives from the understanding that first you must ensure world class reliable component microstuctures. Each microstucture failure cause eliminated removes a potential pathway up the business risk hierarchy dependency to catastrophic business disaster.


This slide is a companion to the new Industrial and Manufacturing Wellness book. The book has extensive information, all the necessary templates, and useful examples of how to design and build your own Plant Wellness Way enterprise asset life cycle management system-of-reliability. Get the book from its publisher, Industrial Press, and Amazon Books.

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