Situation

  • Industry 5.0, the proclaimed fifth industrial revolution, is unfolding at the moment. It is characterized by interconnectedness and vast amounts of available information.
  • Machines are increasingly interconnected along the production chain. One failing machine might halt the whole production process. 
  • Today, poor maintenance strategies can reduce the overall productive capacity of a plant by 5 to 20 percent.

Challenge

  • Predictive maintenance requires substantial investments by asset owners and considerable managerial interventions. 
  • Having a good sense of the value it will add is therefore one of the preconditions for a successful predictive maintenance program. Calculating the business case isn’t easy.

How to reduce Maintenance and CAPEX costs by 50% and improve revenue by using Predictive Maintenance (PdM)

The value for business

By calculating the development at the preventive maintenance level, risks can be reduced.

  • Reducing Downtime – By maximising runtime. Repairs can be carried out just before a breakdown. Studies show that unplanned downtime is costing industrial manufacturers an estimated $50 billion each year, indicating an approximate 10-20% increased equipment uptime and availability.

  • Spare part inventory PdM enables to replace parts when actually needed (not when the calendar says so), the number of spare parts used (and in storage) can be reduced. Additionally, better purchasing forecasting by predicting which spare parts will be needed at which point in time.

  • Reducing Costs – PdM can help organisations to reduce 10-50% of overall maintenance costs and similar amount of savings in operations and MRO material spend. They could be further classified as:

      1. Reduction of unplanned repairs – it means more stable production and operations, decreasing costs incurred from lost production. These cost savings primarily arise from 20-50% reduced efforts on maintenance planning time.
      2. Reduced maintenance labour cost – Since PdM allows Maintenance teams to focus on the machines that actually need it, unnecessary labour costs can be reduced.
      3. Reduction of replacement costs – ordering and replacing machinery/components can be expensive and time-consuming, PdM can prevent machines from reaching failure.
  • Revenue Increase – Here are various ways in which your organisation could register a significant increase in revenue by implementing PdM. These could be classified under the following heads.

      1. Increased equipment availability- increased production and operational efficiency.
      2. Increased or accelerated production/sales – more asset uptime means more production resulting in more potential sales.
      3. Increased product quality – less faulty products and the need for re-works, less waste in materials, and production time resulting in increased profitability.
      4. Increased energy efficiency – Wear and tear can cause machinery to consume more energy than it optimally should. Machinery in good condition will use less energy, reducing overhead costs.
  • Other intangible benefits – There are various other benefits that PdM would have to your organisation. Some of them are listed below:

      1. Positive effect on your organisation – how PdM improves the overall efficiency of the organisation and keeps it competitive among a cut-throat marketplace with organisations increasingly looking to deploy technology solutions to lure your customers.
      2. Risk reduction – how PdM helps to build a safe working environment for your teams.

For more information on this case, please contact us.

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ML model also makes a recommendation on how to operate the equipment to increases up-time, lifetime and minimizes unplanned downtime.

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