A Methodology Proposal for Estimating the Costs Associated with Failure Effects of Subsea Equipment

Abstract

A proposed methodology is presented for estimating the costs associated with the failure effects in subsea equipment. The methodology takes into account the cost of operating losses when a failure mode inhibits the main function of the system and prevents the creation of value, as well as the costs of indirect losses, such as environmental costs caused by the degradation of the environment due to the emission of pollutants, human costs caused by human losses (injury, illness or death) and financial costs caused by the reduction of customer orders depending on the type of failure mode. The concept of Value of Statistical Life (VSL) is used to consider life losses. The development of this methodology is based on a systematic review of the literature, which uses the Scopus, Web of Science, Science Direct and Google Scholar databases. The review found that most literature focuses on modeling of the different types of costs involved in the equipment life cycle, rather than directly related to the costs of failure effects.