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Bad actors have been one of the top discussions in the Reliability and Maintenance fraternity, with organizations struggling to identify the asset which is eating away their margins.

The definition of Bad actor is very subjective and varies with the person mentioning it. A finance guy would considering money as critical variable, while a maintenance supervisor would identify the one which takes most of his man-hours, the operations would identify an asset which is leading to production loss, and so on…..

Asset Quotient (AQ) can be utilized to minimize the subjectivity in the bad actor listing by assigning approved factors to underlying aids of a AQ. AQ is number similar to IQ (Intelligent Quotient) used for humans.

The concept:

Asset Quotient (AQ)- It is a value which ranges from 0 to n, which indicates the performance of an asset in terms of maintainability, repairability and cost for the specified period. Mathematically it can be expressed as a function of various underlying aids which make up the AQ. AQ is an agile concept and would be used with different frames like discipline based, operations based, specific factors etc., It is a dynamic methodology of extracting an index for individual asset which is flexible and easy to evaluate. The flexibility of AQ makes it easy to be applied across functions and interpreted as per the need. Below is the list of few examples of aids which can be included for evaluating AQ.

  • Failure quotient (FQ)- This aid is linked to no. of failure reported on the asset(failure means breakdown indicator). Ratio of number of failures to total no. Failures for the plant/unit.
  • Maintenance quotient (MQ)- This aid is linked to no. Of work orders attached to the asset (for all discipline) and all unplanned (PM01) work orders. Ratio of unplanned activities on the asset to the total unplanned WO in the unit) plant.
  • Production quotient(PQ)- This aid is the production loss in terms of money attached to that asset; Its the ratio of production loss due to the asset to the total revenue generated with the asset for the unit/plant.
  • Cost quotient (CQ)- The cost of all work orders assigned the asset for maintaining the asset (includes the material and service cost to keep the asset operational) can be referred as maintenance cost if the asset. Ratio of cost on asset to the total maint cost in the unit/ plant.
  • Integrity Quotient (InQ)= The ration of failures reported due to loss of integrity of the asset due to corrosion to the loss of integrity for the occurred in the specific plants.
  • Age Quotient (AgQ)= Ration of asset age to the age of the unit/plant
  • Planning Quotient (PlQ)..........


The number and definition of aids can be customized as per the team evaluating AQ, as long as the essence of the subject is intact.

AQ(n)= n –f{(FQ)1,(MQ)2,(PQ)3,(CQ)4,(InQ)5,(AgQ)6…….(.)n}

n is the number of factors identified and included for evaluating Asset Quotient

Refer the below link for a brief understanding at the end of the discussion;

Strategizing Asset Maintenance:



Reliability Enthusiast

Reliability & APM

Tags: AQ, Bad Actor Identification, Asset Quotient, AssetQuotient(AQ), badActor

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The AQ concept provides thorough objective analysis similar to a pareto breaking down the bad actor into components for quick identification and mitigation but without a doubt, it all starts with cost. Stockholders #1 concern is margin and OP, and if we are running a business, it should be ours as well. So, if this AQ concept can be presented as a direct impact on margin and OP (and I think it can) leadership will listen. 


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