Use of Economic Value of Information to Reduce Costs and Increase Revenues

Information is used to make decisions and these decisions make an economic impact in revenues and costs. In particular the quality of information (precision and accuracy of data) in a plant can be quantified. We will show how expected financial losses can be calculated and be used to obtain the value of information. Also, we will show three steps that can be used to improve the revenues and reduce costs through improvement of the quality of data: use of data reconciliation, perform optimal cost-based maintenance, which is superior to risk based approaches, or reliability centric approaches, and instrumentation upgrade. Taking into account that those beneficial also have a steps, we will show techniques to find appropriate trade-offs.