How to Create Value with IoT-based Predictive
November 16, 2022
According to analyst firm Aberdeen Research, 82% of companies experienced unplanned downtime over the past three years. That unplanned downtime cost companies as much as $260,000 an hour!
While Predictive maintenance can significantly reduce that expensive downtime and save thousands of dollars, you need to be familiar with this approach’s value creation and have the right mindset to implement and get the most out of it.
HECO can help.
Value Creation & Preventative Maintenance
Value creation means to give something of value and receive back something more valuable. Most companies may think of value creation in terms of an end-product or service that their customers find valuable. That’s more along the lines of profit, though.
The idea of value creation is much more than that. It includes how you provide services or approach manufacturing that end-product.
You can consistently and efficiently meet your customer’s needs when your equipment provides reliable performance. Less downtime means more consistent production, fewer missed deadlines, and an overall better reputation for your facility – not to mention fewer headaches for you!
Less downtime also means you’ll lose less from the expensive costs associated with work stoppages and costly repairs. This, in turn, leads to a slightly better profit margin for your company. And when losses are reduced, they don’t get passed on to your customers.
Reliability can, directly and indirectly, impact the value of what you are offering to your customers. Therefore, reliability is a value creation and driver for your facility.
IoT/IIoT Value Drivers
In addition to the many benefits of Predictive maintenance, IoT (Internet of Things) and IIoT (Industrial Internet of Things) technology leverages the availability of the internet, wireless communication, and cloud-based storage and apps to make the Predictive approach far easier to implement, use, and manage.
The true value of the IoT-backed technology is not in the technology itself. The hardware is important, of course, but not the most critical part of the solution. The value of IoT-based Predictive lies in the combination of hardware, software, monitoring, data analytics, and an insurance-backed offer (if the provider offers one).
The whole solution is valuable, not just any single part.
There are five main value drivers of IoT-backed Predictive, including the reduction of:
- Unplanned downtime.
- Cost of predictive and routine maintenance.
- Repair costs.
- Inventory costs, especially when supply chains are tight.
- Environmental and safety costs in specific industries.
A Change in Mindset
Keep in mind that the value created by Predictive solutions isn’t really debatable anymore. There are countless reports and case studies demonstrating the tremendous savings delivered to plants through effective IoT-backed Predictive, however, buyers and adopters of this technology must switch their mindsets about how they perceive and value Predictive maintenance.
To truly reap the benefits and potential value creation, users must adopt a value mindset, not a technology mindset. Technology alone can’t deliver the promised value. With the proper perspective, process, and training, however, it can make a powerful difference.
At HECO, our APOLLO IoT-based Predictive solution provides the five value drivers and can make a tremendous difference for your facility.
APOLLO takes a four-tiered approach to Predictive. It incorporates:
- Asset health monitoring.
- HECO service and domain expertise.
- Asset inspection and detailed reporting.
- A guarantee against unalerted asset failures.
Our Predictive package puts you in control of when repairs and maintenance are performed. By moving to a Predictive approach, downtime is optimized and the need for repairs minimized. In addition, manual monitoring costs are significantly reduced thanks to remote-condition monitoring.
Artificial intelligence and analysis, combined with your equipment’s performance data, will signal you when something is about to go wrong. In essence, you can fix problems before they happen.
All Systems Go
By looking at IoT-based Predictive maintenance in terms of the value it brings, you can discover an effective value creation booster.
Here at HECO, we recommend conducting an analysis of your current costs of doing maintenance, scheduled repair programs, and unplanned downtime. We can help you conduct this analysis and calculate the specific savings APOLLO can deliver to your business.
Contact us today to learn more about APOLLO and Predictive maintenance!
Posted in Predictive