Economic evaluation of reliability-centred maintenance (RCM): an electricity transmission industry perspective

Traditional approaches to appraising the introduction of reliability centred maintenance (RCM) are shown to exhibit severe limitations. In particular, the economic implications surrounding its adoption are repeatedly misstated, with the consequence that organisations may be investing in unprofitable RCM ventures. Previously quoted benefits are examined and, contrary to established opinion, it is shown that these `generalised´ statements, once redefined, are able to be quantified. The paper then proceeds to describe a financial methodology, developed by NGC and UMIST, by which the introduction of RCM can be evaluated. Moreover, it shows that, by regarding RCM as an investment decision, rather than an `act of faith´, the economic viability of a potential application can be determined before vital resources are committed. Finally, it is demonstrated that when the methodology is applied within the context of the electricity transmission industry, the economic case underlying the adoption of RCM can be realistically appraised