RBI Concepts - Return on Net Assets (RONA)

Asset Optimization Consultants identifies the basic concepts of risk and RBI, the key requirements of an RBI assessment, the method with which risks are managed with RBI, and the relationship between RBI and other plant programs or initiatives.
Mechanical Integrity Assessments

How does your mechanical integrity program help your company achieve your corporate goals for dividends and profits? The answer is to achieve the required return on net assets (RONA).

RONA is not that far removed from the boardroom. We have heard many conversations like this one:

President: "We need 25 percent RONA to meet our objectives for dividends and profit."

CFO: "That translates into a Net Income of $200M for the company's four regions, A, B, C, and D."

Director, Region A: "Therefore my region needs to contribute 33% of that number since we have 33% of the total asset value and work capital for the company which is $66.7M next year."

Somewhere in that equation is a component of share price, book value, dividends and of course bonuses paid out to managers for achieving their targets. We will take you there - one step at a time - and demonstrate the importance of being able to measure the performance of your program as well as the performance of those managing your program.

Topics

  • What is RONA and how is it calculated?
  • How does RONA translate into Net Income?
  • How does your total asset value and working capital translate into achieving your contribution to RONA?
  • What is Asset Utilization (AU) and how does it translate into your

    • Maintenance Strategies,
    • Operational Strategies, and
    • Acceptable Risk Strategy?
  • How do your KPIs measure your ability to achieve this goal, and more specifically:

    • The need to meet your Fixed Asset Strategy inspection due dates and confidence levels,
    • OEE for your rotating equipment, and
    • Instruments and Controls target percentage of spurious trips?
Company Strategies, Regional Strategies, Ship Strategies, Asset Strategies: Optimizing Return on Net Assets (RONA)

Lunch and Learn Inquiry

Related Knowledge

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Design basis RBI? Why not optimize all your asset families prior to RFSU?

Data Mining, Management, and Migration

Sometimes moving millions of data fields from ten different databases to another seems like trying to get a thousand birds to leave the branches of one tree and land on just the right branches of another.

Production Loss Accounting - Heat Exchanger Bad Actor Analysis

Heat exchanger failures contribute to over $146M in losses for a large refining enterprise.

Time to Value - Asset Integrity Management Delivered, Confidently, Comprehensively and Quickly. An AOC & Intergraph RBI Solution

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Implementing RBI in Remote Locations

The importance of understanding risk and the significant value attainable through the implementation of risk based inspection (RBI)

From Fitness for Service to a Reliability-Based Mechanical Integrity Program - A Journey from the Ashes to Sustained Reliability (RMC-10-30)

An upgrader is brought safely back into production a year ahead of expectations, avoiding an opportunity cost exceeding $300 million.

Risk Based Asset Management - Delivering and Sustaining Value Across a Mid-Sized Refining Enterprise (RMC-09-45)

The business case developed for an RBI program - realized benefits and how the on-going value of the program is measured

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Related Training

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Developing the value proposition and business case for an RBI program

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