Understanding Infrared Thermography Reading 3

The sample worksheet at the end of this description provides a protocol for estimating
cost benefits of any finding. Following the EPRI M&D Center Guidelines for cost
benefit detcnnination. the benefits of detecting a failure mechanism at work on a
system or component before failure are quantified in tcnns of probable dollars saved.
To do this, the costs of eliminating the failure mechanism in a timely fashion are
compared to the likely costs incurred if the failure mechanism was not corrected and
the component or system failed. The approach used in the analysis considers three
possible failure scenarios:
1. worst case (catastrophic failure),
2. possible case (moderate failure). and
3. probable case (minor failure - the failure most likely to occur).
The following three calculations are used to estimate failure scenarios:
1. estimate the percentage likelihood out of 100 percent of each of the three
scenarios occurring - with the sum of the three percentages equal to 100 percent;
2. multiply the projected cost of each of the three scenarios by its estimated percent
likelihood - the sum of these three products is the weighted estimated savings by
not having to do any of them; and
3. estimate the cost benefit by comparing the actual cost of the timely service or
repair to thc wcighted estimated savings.
Charlie Chong/ Fion Zhang