Ryan Conger

January 24, 2025

Why Asset Performance Management Exists: A Historical Perspective

The development of asset performance management is a tale rooted in practical problem-solving. It begins in an era when industrial machinery was rapidly transforming how society functioned, but with little understanding of how to maintain complex mechanical systems safely and efficiently.

In the mid-19th century, steam power was revolutionizing transportation and manufacturing. Boilers—the heart of steam-powered machinery—were critical to industrial progress, but they were also inherently dangerous. Engineers and industrialists knew something had to change.

The story unfolds through a series of critical moments and insights. In 1866, two organizations emerged that would play pivotal roles in understanding mechanical reliability: Hartford Steam Boiler in the United States and TUV in Europe. These were not just business ventures, but responses to a genuine safety crisis.

The numbers were stark. By 1868, the United States was experiencing one boiler explosion every four days. Each incident represented not just a technical failure, but human lives lost and industries disrupted. The Sultana steamboat explosion of 1865—still the worst maritime disaster in U.S. history—became a turning point that galvanized industrial leaders to seek better solutions.

Early efforts focused on periodic inspections. The American Society of Mechanical Engineers (ASME) formalized these approaches, culminating in the Boiler and Pressure Vessel Code of 1915. This was more than a technical document; it was a framework for understanding how mechanical systems could be made safer.

The narrative shifts dramatically with the rise of commercial aviation. In the 1930s, air travel transformed from a novelty to a critical mode of transportation. The Federal Aviation Administration (FAA) faced a complex challenge: how to ensure the reliability of increasingly sophisticated aircraft.

Their initial approach was straightforward—mandate regular engine overhauls. Every 8,000 hours, aircraft engines would be completely serviced. But data began to reveal a more nuanced reality. When overhaul intervals were adjusted, failure rates didn't always improve. In some cases, they paradoxically increased.

A comprehensive investigation examining 12 years of maintenance records revealed a groundbreaking insight: most equipment failures were not time-dependent. Instead, they were either random or more likely to occur early in an asset's life—a phenomenon engineers termed "infant mortality."

This discovery led to the development of Reliability-Centered Maintenance (RCM). The first maintenance strategy specification, MSG-1, was written in 1968 for the Boeing 747. The results were compelling. Where the DC-8 required 4 million labor hours per 20,000 operating hours, the 747 reduced this to just 66,000 hours.

By 1978, when Stan Nolan and Howard Heap published their seminal work, they crystallized a fundamental principle: maintenance strategies based solely on maximum operating age would have minimal impact on failure rates. It's like scheduling a knee replacement just because you're turning 65.

Subsequent studies across various industries—from naval submarines to commercial aircraft—continued to confirm this insight. Whether failures were 90% random or 80% non-time-based, the core message remained consistent: understanding the true nature of asset reliability is more important than adhering to arbitrary time-based maintenance schedules.

About Ryan Conger

Troublemaker.