How to Perform Criticality Analysis to Prioritize Asset Maintenance?

Article Written by:

Meyyappan M

Created On:

October 28, 2025

How to Perform Criticality Analysis to Prioritize Asset Maintenance?

Table of Contents

In any industrial or facility operation, asset maintenance is the engine of reliability. It's the crucial function that keeps production lines moving, ensures facility safety, and protects product quality. But in a complex plant with hundreds, or even thousands, of assets, a common problem arises: where do you focus your limited budget, time, and technicians?

For many maintenance professionals and plant heads, the daily reality is a battle against the "loudest-shout" or "latest-failure" model. This reactive approach is inefficient, costly, and dangerous. This is precisely where criticality analysis becomes a manager's most powerful tool. It provides a structured, data-driven method to determine which assets matter most, shifting your strategy from reactive firefighting to proactive, risk-based control.

What is Criticality Analysis?

In the context of asset management, criticality analysis is a systematic process used to rank assets based on the potential severity of their failure. It's not just about which asset is most expensive; it's about the total impact of a failure on the entire operation.

The primary goal is to identify assets whose failure would cause the most significant disruption. This allows you to focus your maintenance resources—people, parts, and technology—where they can have the greatest positive impact on:

  • Minimizing safety and environmental risks
  • Optimizing resource and budget allocation
  • Maximizing production uptime and reliability
  • Ensuring regulatory compliance

This applies everywhere: In manufacturing, the analysis might show a single bottleneck packaging machine is more critical than three redundant processing pumps. In a data center, the primary HVAC unit is infinitely more critical than office lighting.

Why is Asset Maintenance Prioritization Important?

Asset maintenance prioritization is crucial because in any real-world operation, you have limited resources—limited time, budget, and technicians. You simply cannot treat every asset as equally important.

Without prioritization, maintenance becomes a "loudest-shout" system. Teams run from one fire to the next, fixing whatever just broke. This reactive approach is a guaranteed way to waste money and experience catastrophic failures. You risk spending valuable labor hours on a non-critical exhaust fan while your main production line is on the verge of collapse.

A structured prioritization, driven by criticality analysis, fundamentally changes how you operate.

Key Benefits of Prioritizing Maintenance

  • Maximize Uptime and Revenue: It allows you to focus your best efforts on the critical assets that directly drive production. Protecting these "crown jewels" ensures the plant keeps running and generating revenue.

  • Control Costs and Optimize Resources: This is smart financial management. You allocate your most expensive resources—like predictive (IoT) sensors, advanced analytics, or your most skilled technicians—only to high-priority assets. Non-critical assets can be put on a cheaper "run-to-failure" or simple time-based PM schedule.
     
  • Enhance Safety and Compliance: Prioritization forces you to identify and protect assets whose failure could lead to a safety incident or an environmental/regulatory violation. These assets are always at the top of the list, protecting your people and your license to operate.
  • Improve MRO Inventory Management: You stop wasting capital by overstocking spare parts for non-critical equipment. Instead, you ensure you have the right parts in stock for your Tier 1 (most critical) assets. This directly slashes repair times (MTTR) when a critical failure does occur.
     
  • Reduce Technician Stress and Firefighting: A clear plan removes the guesswork. Technicians know exactly what to work on and why it matters. This shifts the team's entire culture from constant, high-stress "firefighting" to a more controlled, planned, and proactive environment.

6 Steps to Perform Criticality Analysis in Asset Maintenance

1. Asset Data Collection

You cannot analyze what you don't know you have. The first step is to build a comprehensive asset register. This goes beyond a simple list; you must identify all maintainable assets and group them logically, perhaps by system, line, or area.

For each asset, gather essential data:

  • Identifier: Asset name, ID number, and location.
  • Function: What does this asset do? What other systems depend on it?
  • Performance History: If you have it, collect data on Mean Time Between Failures (MTBF) and Mean Time to Repair (MTTR).
  • Maintenance History: What PMs are currently performed? What failures have occurred?

This step is foundational. Modern CMMS platforms streamline this by allowing you to attach QR codes to equipment, giving instant access to its entire history and specifications.

2. Define Criticality Criteria

This is the heart of the analysis. Your team must decide how you will measure criticality. These criteria should be as objective as possible. A good way to start is by asking, "What are the consequences if this asset fails?"

Common criteria include:

  • Safety Impact: Does failure pose a risk of injury or death?
  • Environmental Impact: Could failure result in a spill or a compliance breach?
  • Production Impact: Does failure stop the entire plant, a single line, or just cause a minor slowdown?
  • Quality Impact: Does failure lead to product scrap or rework?
  • Cost of Failure: This includes lost production costs plus the direct cost of parts and labor for the repair.
  • Repair Time (MTTR): How long does it take to fix? An asset that fails often but is fixed in 5 minutes may be less critical than one that fails once a year but takes 48 hours to repair.

Create a simple scoring scale for each criterion (e.g., 1 = Low Impact, 3 = Medium Impact, 5 = High/Catastrophic Impact).

3. Asset Risk Assessment

Now you combine the consequence of failure (Step 2) with the probability of failure (from Step 1) to calculate a Risk Priority Number (RPN) for every asset.

The formula is simple: Risk = Consequence x Probability

  • Consequence (Severity): This is the total score you just calculated in Step 2. An asset with a high impact in multiple categories will have a very high consequence score.
  • Probability (Likelihood): This is how often the asset is likely to fail. This is where your asset history (MTBF) is vital. An asset that fails twice a year gets a high probability score (e.g., "5"), while one that has run reliably for 10 years gets a low score (e.g., "1"). (If you have no failure data, you must use qualitative judgment from experienced technicians and engineers).

This calculation gives you a risk score for every single asset. An old, unreliable motor (low consequence x high probability) could now be seen as a higher risk than a new, reliable main transformer (high consequence x low probability). This data-driven insight is what you're looking for.

4. Asset Classification

With RPN scores in hand, you can now group your assets into simple tiers. Don't overcomplicate this; three or four tiers are usually sufficient.

  • Tier 1: Critical (e.g., Top 10-15% of assets): Catastrophic impact on safety or production. These are your "protect-at-all-costs" assets. They cannot fail.
  • Tier 2: Semi-Critical (e.g., Next 20-30%): Significant impact, but the failure may be isolated, or a standby/redundant unit exists.
  • Tier 3: Non-Critical (e.g., The remaining 50-70%): Minor impact on operations. Failure is an inconvenience but not a disaster.

For example, a plant's main air compressor might be Tier 1, a redundant pump Tier 2, and a toolroom exhaust fan Tier 3.

5. Maintenance Task Prioritization

This is where your analysis becomes action. Your maintenance strategy should now be dictated by these tiers.

  • Tier 1 (Critical) Assets: Receive the most intensive maintenance. This includes:

    • Predictive Maintenance (PdM): Use Industry 4.0 tools like IoT vibration, temperature, or oil sensors to monitor health in real-time.
    • Comprehensive PMs: Frequent, detailed preventive maintenance tasks.
    • Top Priority: All work orders related to these assets are "urgent" and go to the top of the queue.
    • Critical Spares: Key spare parts must be kept in stock.
  • Tier 2 (Semi-Critical) Assets: Receive standard preventive maintenance and timely corrective repairs.
  • Tier 3 (Non-Critical) Assets: May be placed on a "run-to-failure" strategy or receive only basic, low-frequency PMs. Work orders are addressed as time permits.

A modern CMMS makes this easy by allowing you to tag assets by criticality, automatically driving PM schedules and work order priority levels.

6. Review and Continuous Improvement

Criticality is not static. It is not a "set it and forget it" report. Your operation will change: a new product line may make a "semi-critical" asset suddenly "critical." An asset may age, increasing its probability of failure.

Your analysis must be a living document. Use the data from your CMMS—new work orders, downtime reports, and MTTR/MTBF metrics—to feed back into your analysis. Plan to formally review your asset criticality scores at least once a year or whenever a major operational change occurs.

Best Practices for Effective Criticality Analysis

  • Collaborate Across Teams: Do not perform this analysis in a maintenance silo. You need input from Operations (who understands the production impact), Safety (who knows the risks), and even Finance (who can help quantify failure costs).
  • Use Good Data: Your analysis is only as good as your data. "Garbage in, garbage out" is the absolute rule. This is why having a strong asset register and accurate work order history in a CMMS is so vital.
  • Start Simple: Don't aim for a perfect, 20-factor model on day one. Start with 3-5 key criteria. A "good enough" analysis that you can implement this month is far better than a "perfect" one that sits on a shelf for a year.
  • Link to MRO Inventory: Your spare parts stocking strategy must reflect your criticality analysis. There is no reason to waste capital on spares for Tier 3 assets when you are stocking out of parts for Tier 1 assets.

Common Mistakes to Avoid

  • Using Subjective Criteria: Letting the "loudest voice" in the room define what's critical, rather than relying on the objective scoring system.
  • Failing to Link to Action: The worst mistake is doing all the work to create the analysis... and then filing it away. The criticality ranking must be built directly into your CMMS to prioritize work orders and drive maintenance schedules.
  • Neglecting to Update: A criticality analysis from two years ago is a historical document, not an active management tool. The plant evolves, and so must your analysis.
  • Overlooking Data Quality: Basing your "probability of failure" on guesses or outdated spreadsheets will skew your entire result.

Conclusion

Criticality analysis is the foundational step in transforming your maintenance department from a reactive cost center into a proactive, strategic business partner. It's the "how" behind an intelligent maintenance strategy.

By systematically understanding what to maintain and why, you can focus your valuable resources on the assets that truly drive safety, compliance, and profitability. Stop firefighting. Start by listing your assets, defining your criteria, and having those crucial cross-departmental conversations. This is the first and most important step toward mastering your operational reliability and efficiency.

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