What is criticality analysis? A guide to smarter asset prioritisation

Criticality analysis is a structured method for ranking assets by importance, risk, and impact. In property and facilities management, it provides a way to determine which systems matter most to performance and which require the highest level of attention. By evaluating safety, cost, compliance, and operational disruption, landlords can identify priorities and direct resources with greater accuracy.

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Contents:

• Understanding criticality analysis
• Why criticality analysis matters in maintenance and facilities
• How to perform a criticality analysis
• Common scoring models and tools
• Examples of criticality analysis in real operations
• How software enhances criticality analysis
• Make informed maintenance decisions
• FAQs

MRI Software helps real estate owners and facilities managers approach this process with modern tools that bring clarity and structure. With facilities management software, asset records and performance data are centralised in one platform. These insights link directly to maintenance management, making it easier to plan interventions and reduce risk.

A BMS feeds real-time building data into this ecosystem, while FM KPIs provide measurable benchmarks. IWMS integrates asset priorities into financial and space planning decisions, and CMMS ensures that maintenance activities reflect the most critical needs. Together, these tools transform criticality analysis into a living process that evolves with your portfolio.

Understanding criticality analysis

Criticality analysis is a form of structured prioritisation. It considers not just whether an asset is functioning but how important it is to overall operations. In a commercial office, a broken light bulb is inconvenient, while a failed HVAC unit makes an entire floor unusable. Both are failures, but one is far more critical than the other.

This analysis is not the same as condition monitoring. Condition monitoring examines the health of an asset in the present moment, often using sensors and inspections. Criticality analysis focuses on the consequences of failure. An asset might be in good condition now, but if its failure would cause significant disruption, it still receives a high criticality score.

Risk assessments also differ. Risk analysis may focus only on probability and compliance, while criticality analysis balances probability with consequence, cost, and impact. By combining all these factors, landlords and managers create a framework that reflects both operational needs and business objectives.

Why criticality analysis matters in maintenance and facilities

Criticality analysis is one of the most effective tools available for managing assets within a property portfolio. It provides structure in a world where resources are limited and where every decision has financial, operational, and reputational implications. The core idea is simple: not all assets are equal. Some are essential to safety, some are vital for compliance, and some are critical to tenant comfort and operational continuity. Others, while still important, have far less impact if they fail.

Without criticality analysis, facilities teams often treat every asset as if it carries the same weight. This results in wasted resources, unexpected failures, and gaps in compliance. With criticality analysis, effort is applied intentionally, reducing risk and creating a stronger foundation for long-term asset performance.

Asset prioritisation for planned maintenance

Planned maintenance works best when it focuses on the systems that matter most. A car park gate breaking down might frustrate tenants, but it does not compare to a fire alarm that protects lives in an emergency. Criticality analysis highlights these differences.

By ranking assets according to importance, landlords and managers can plan servicing, inspections, and upgrades in a way that reflects reality. This prioritisation is not only practical but also financially wise. Resources are directed to the systems that carry the greatest weight, which reduces waste and prevents spending on low-value activities.

Consider a high-rise office tower. If lifts are ranked as high criticality, they will receive scheduled inspections and servicing ahead of less essential assets. This ensures continuity of operations for tenants while lowering the risk of costly emergency callouts.

Reducing unplanned downtime and risk

Unplanned downtime is disruptive and costly. For some facilities, such as hospitals or data centres, it can be catastrophic. A single system failure may halt surgeries, disrupt patient care, or interrupt essential services. In commercial properties, downtime reduces tenant productivity and can even lead to lost leases.

Criticality analysis reduces these risks by identifying which systems have the most severe consequences if they fail. If an HVAC system that controls climate for sensitive IT equipment is ranked as highly critical, it will be subject to closer monitoring and preventative maintenance. This ensures that downtime is avoided and that risk is controlled before it escalates.

In practice, this approach creates a culture of foresight. Facilities teams can anticipate problems before they affect tenants or investors, building trust and reliability across the portfolio.

Resource allocation and safety improvements

Every property team faces limits. Budgets, staffing, and supply chains create pressure to make choices. Criticality analysis provides a framework for making those choices. By understanding which systems protect safety, ensure compliance, or support continuity, managers can allocate scarce resources where they will have the most impact.

Safety is often the top driver. Life safety systems such as fire alarms, sprinklers, and emergency lighting always rank at the highest level. By directing resources here first, landlords reduce liability and provide tenants with safer environments.

Resource allocation guided by criticality also improves long-term financial stability. By avoiding scattershot spending, funds are preserved for the projects that deliver the most significant returns.

How to perform a criticality analysis

Performing criticality analysis requires a disciplined approach. It is not a one-off exercise but a structured process that evolves as portfolios and tenant needs change. The following steps provide a clear roadmap.

Step 1: Define asset list and functions

The first stage is creating a comprehensive asset inventory. This involves recording every significant piece of equipment, from lifts and chillers to plumbing systems and emergency generators. Each asset must also be linked to a clear functional description.

For example:

• A lift transports tenants safely between floors.
• A chiller provides cooling for offices, data centres, or retail spaces.
• A generator ensures continuity of power during outages.

These descriptions form the foundation of criticality analysis. Without them, it is impossible to measure the importance of an asset accurately. Large portfolios may contain thousands of entries, which makes discipline essential. Leaving assets off the list creates blind spots that undermine the integrity of the analysis.

Step 2: Identify failure modes and impacts

Once the list is complete, the next step is to identify how each asset might fail and what the consequences would be. Failure modes should be specific. A lift may fail because of motor breakdown, leaving tenants stranded. A plumbing system may fail through a burst pipe, flooding a retail floor.

Impacts must then be measured in terms of safety, downtime, cost, and tenant experience. Some failures may have low probability but catastrophic impact. A fire alarm failing is unlikely, but the consequences would be severe. Others may be more frequent but less impactful, such as light fittings that require replacement.

This stage demands detail and precision. Broad descriptions are less useful than targeted, scenario-based impacts.

Step 3: Assign scoring criteria

To create structured results, assets must be scored. Categories often include:

• Safety impact
• Financial cost
• Downtime consequences
• Compliance requirements
• Tenant disruption

Each category can be assigned a numerical value, such as a scale from one to five. This allows assets to be compared objectively.

For example, a chiller serving a hospital wing may score high for safety and tenant disruption because failure directly affects patient wellbeing. A lift in a low-traffic service area may score lower because alternative routes exist. The goal is not mathematical perfection but a framework that reflects reality and supports decision-making.

Step 4: Rank assets and review findings

With scoring complete, assets can be ranked in order of importance. High-ranking systems become priorities for preventative maintenance, monitoring, and investment. Low-ranking systems are still maintained but receive fewer resources.

Review is critical. Findings should be examined by stakeholders from finance, facilities, and operations to confirm accuracy. Rankings should also be revisited regularly. Tenant changes may make one system more important than before. New regulations may elevate the priority of compliance-related assets.

Criticality analysis must be viewed as an ongoing process rather than a single report. Regular updates keep the framework relevant and aligned with evolving business objectives.

Common scoring models and tools

Different models exist to structure criticality analysis.

• Risk matrices map likelihood against consequence. Assets with high likelihood and high consequence sit at the top of the priority list.
• RPN (Risk Priority Number) multiplies severity, occurrence, and detection to produce a numerical score. This model is often used in industrial environments.
• FMEA (Failure Modes and Effects Analysis) provides structured links between asset functions, potential failure modes, and outcomes.

Some methods are quantitative, relying on data and numbers, while others are qualitative, relying on expert judgement. Both have value. Visual tools such as heat maps and scoring grids make findings easier to present. Managers and investors can see at a glance which assets are critical and which require less immediate attention.

Examples of criticality analysis in real operations

Examples show how criticality analysis works in practice.

HVAC in commercial buildings

In office towers, HVAC systems rank highly because comfort is tied directly to tenant satisfaction. Failures affect every occupant, making them a top priority for inspection and servicing.

Electrical assets in manufacturing

Production facilities rely on uninterrupted power. A failed electrical feeder may halt entire operations. Criticality analysis places these assets at the top of the ranking, justifying investments in predictive maintenance.

Mixed-use facilities

Hospitals, universities, and airports combine multiple needs. In hospitals, life safety systems outrank comfort systems. Criticality analysis ensures that defibrillators, alarms, and emergency power receive the most attention.

These examples highlight the adaptability of criticality analysis. Whether in retail, commercial, or industrial facilities, the method ensures decisions are based on consequence rather than guesswork.

How software enhances criticality analysis

Software transforms criticality analysis from static spreadsheets into dynamic, living processes.

Benefits of CMMS, EAM, and IWMS integration

A CMMS centralises work orders and asset histories, providing data for ranking. Enterprise Asset Management platforms extend this analysis across large portfolios. IWMS integrates with financial and space planning systems, ensuring that asset rankings inform capital planning and leasing strategies.

Real-time asset data for dynamic analysis

A BMS captures live performance data. Sensors measure energy consumption, vibration, or temperature. These inputs feed into FM dashboards, updating rankings dynamically. An asset that shows signs of early failure can move up the priority list automatically.

Using MRI Software to centralise asset criticality and automate insights

MRI Software platforms connect criticality rankings to maintenance scheduling. Assets identified as critical receive earlier inspections and faster responses. Reports provide transparency for stakeholders, showing how priorities are identified and acted upon. This automation reduces human error and ensures consistency across portfolios.

Make informed maintenance decisions

Criticality analysis supports informed decision-making. It ensures that every dollar spent and every hour of labour is directed where it has the most value. For landlords, this reduces costs, prevents downtime, and builds tenant trust. For facilities teams, it creates clarity and focus. With software integration, it becomes an ongoing process that strengthens both daily operations and long-term planning.