Welcome to the era of asset optimization
Your actions impact your assets
The success of your organization depends upon its physical assets. And the performance of those assets depends on the actions you take using the insights they generate. Keep reading to learn how you can leverage IoT and advanced analytics and AI to balance costs with risk and performance to optimize the contribution of your assets.
APM is the engine of progress
of asset failures appear random 2
Ours is not an orderly universe. Asset failures can occur at any time.
of preventive maintenance activities are carried out too frequently 3
Even worse, some maintenance activities may actually cause failure by disrupting the equilibrium of stable assets.
of all maintenance efforts are ineffective 4
Almost half of preventive maintenance costs are spent on assets with negligible effect on uptime failure.
EAM brings order out of chaos
Many organizations have embraced enterprise asset management for maintenance execution. EAM is a powerful tool that helps capture volumes of data related to assets – data like location data, maintenance schedules, and work order history. It helps bring order out of chaos. Additionally, EAM addresses regulatory requirements, enables calendar-based maintenance, and captures the knowledge of experienced workforce technicians.
But as the business world continues to evolve, more is needed. Competitive pressures have intensified, and there’s more pressure to maximize asset availability, reduce risks, and minimize maintenance costs. Also, with the help of EAM, we’ve learned that equipment failures aren’t always a result of age. Relying on calendar-based maintenance alone can cause expensive over-maintenance with lengthy disruption that becomes a drain on human resources. Or, it can result in unnecessary and costly replacement when planned refurbishment would have extended the life of the unit.
Add to these issues an aging infrastructure and retiring workforce technicians, and it’s easy to understand why many organizations are seeking help to better monitor health in real-time, assess risk and make better maintenance planning decisions about their myriad of assets.
Introducing APM: EAM with booster rockets
With the foundation of EAM firmly in place, providing a system of record, it has become possible to add powerful new capabilities to enhance the core. APM solutions are designed for decision support. Building on a foundation of EAM and data from plant operations systems and other systems of record, APM uses advanced analytics and AI to help engineers, planners and maintenance leaders make better decisions. It enables them to shift asset maintenance strategies from preventive to predictive, prescriptive, and financially optimized. It enables them to confidently determine which assets should be repaired, refurbished or replaced.
APM solutions are designed for decision support. Building on a foundation of EAM and data from plant operations systems and other systems of record, APM uses advanced analytics and AI to help engineers and planners make better decisions. It enables them to shift asset maintenance strategies from preventive to predictive, prescriptive, and financially optimized.
Asset-intensive organizations that implement APM are achieving predictably outstanding results
Although it’s still in its infancy, APM is providing outstanding results. Asset-intensive organizations that have made the leap to APM are realizing unprecedented results:
A 15-50% reduction in operational costs
A 10-20% increased uptime and availability
Years of additional performance of assets
The results are so astounding that experts predict that the reduction of unplanned downtime can save manufacturers USD 50 billion annually. 5
Some organizations are reporting astounding results:
Decrease total spend on preventive maintenance by up to 50% 6
Reduce maintenance costs by up to 25% 7
Eliminate up to 70% of breakdowns 8
Cut unplanned outages by up to 50% 9
The four pillars of APM
Figure 1: A comprehensive APM solution
A comprehensive APM approach is built on four important pillars: plan, monitor, health, and predict. Each of these pillars is essential to the creation of a reliable asset maintenance program that drives your corporate goals. While the criteria for each pillar will change according to industry and specific organizational objectives, the approach remains the same.
Plan: The first step toward APM
To accelerate your APM journey it is necessary to re-examine and reassess asset management strategies. What are the goals? To reduce asset costs? To reduce risks? To improve resilience? Yes. Yes. And yes.
Organizations realize that it doesn’t make sense to treat all assets equally. They need to identify which assets need attention and when. And for even greater productivity, they want to ensure that when the technician arrives to perform the necessary maintenance, the procedure is known and the needed parts are available.
Planning is the first step in embarking on this journey.
The importance of criticality
You have hundreds, if not thousands of assets in operation at any given time. If you are like many in the industry you may be managing them in exactly the same way with the same maintenance schedules and inventory of replacement parts. Yet even within the same asset class, not all your assets have equal importance. For example, the failure of a power transformer in a residential area may be inconvenient. But the loss of power at a hospital could be tragic.
Rather than attribute the same importance and approaches to all your assets, it’s now best practice to determine the specific criticality of each asset or asset class. This assessment is based on the likelihood of failure and the consequences. Assets having a high likelihood of failure that could result in extreme consequences should be designated critical assets, and subject to the following measures:
Regularly planned predictive and preventive maintenance
Immediate availability of replacement parts
Assessments of condition and life expectancy
Contingency plans, including higher priority work order status
To accurately assess and assign criticality requires an understanding of your asset landscape and business objectives. It requires planning.
With appropriate planning, organizations can put into place a differentiated maintenance strategy that helps them achieve their objectives for uptime, safety, cost and the environment. They can establish a maintenance program to generate the best possible outcomes using the least amount of resources. They can make informed decisions about the lifespan of individual units and the need to refurbish or replace. They can ensure compliance, make better decisions and remain competitive. But it all begins by carefully examining their asset landscape and thoroughly understanding their goals.
Figure 2: Organizations are challenged to achieve the right balance of asset maintenance
1 Too simple
3 Too complex
Too much maintenance
Too little maintenance
Minimizes costs while maintaining high productivity and safety
Analytics and AI make APM possible. Planning makes APM work.
Proper planning ensures that organizations implement the full spectrum of functionality required to meet their performance objectives. Ideally, they’re seeking:
A comprehensive solution that integrates with their existing technology
A single solution that provides everything required to manage the reliability of every asset in the enterprise, without the need for disparate point solutions from multiple vendors or the building of custom integrations.
Tools to quickly identify and prioritize critical, high-risk assets
Proper planning collects and analyzes full data about your current asset state and projected lifespan.
Ability to compare various tactics, based on customized requirements
Set company or site-specific objectives for safety, availability, environmental outcomes, maintenance costs and other factors. Conduct failure analysis and event simulation to help maintenance teams create and evaluate plans that find the balance among financial results, operational performance and residual risk.
Assurance that they are compliant with the appropriate regulatory requirements
Industry-specific planning that includes safety, environmental and other important issues.
Insight into the business impact of the program
Planning helps you prioritize your actions, and provide measurable key performance indicators (KPIs) and return on investment(ROI) targets.
Learn more about planning for asset performance management
Take the APM assessment to begin planning your APM strategy.
Monitor: Optimize operating performance with AI-powered insights
Make better decisions with real-time visibility of critical equipment
Understand real-time data to minimize negative trends
Respond quickly to reduce downtime
Maximize efficiency of production process and yield
Troubleshoot sources of degradation based on historical data
Detect anomalies and drill into root cause
Reduce maintenance costs associated with repeat failures
Reduce emergency maintenance costs, including supply chain and overtime
Reduce safety incidents and associated costs
APM works hard to keep you working harder
Maintaining sophisticated machinery is becoming more complex. Just think how much more effective your asset maintenance and operations leaders will be when you are armed with the following capabilities.
Health: What are your machines telling you?
It’s true. With the advent of IoT and sensors, your connected assets are capable of telling you a lot about themselves, and about how you can get the most from your investment in them. A hydraulic pump might be telling you how you can reduce preventive maintenance costs by up to 25 percent. An airplane engine might be telling you that based on use, you can reduce maintenance hours by up to 70 percent. A wind turbine might be telling you that it needs maintenance every six months rather than every four. 10
If you listen carefully to the valuable data your assets are sending, you can take the appropriate condition-based preventive measures and more effectively meet your business goals.
Deeper insights into the health of your assets
APM determines overall asset health from a variety of data that is obtained from numerous sources, including IoT sensors, weather patterns, historical data, your EAM systems, and even human observations. This approach is far more sophisticated than a traditional time-based approach that can often result in continuous work order creation, regardless of need. APM Health gives you a clear, accurate, and near real-time picture of what’s actually happening to enable condition-based maintenance. Best of all, the health view is based on criteria that you establish.
So equipment maintenance schedules can be adjusted based on asset condition, usage, and history to provide peak performance while reducing maintenance costs. You can identify bad actors and analyze condition data to take immediate, appropriate remedial action to prevent unplanned downtime by sending a technician supplied with the instructions and the appropriate replacement part. Or you can even choose to automatically address the issue as part of the future routine maintenance.
APM Health insights reduce risk, save time, save money
APM Health insights save money and human resources by calculating a health score based on reliable engineering processes. Tracking asset health ensures that maintenance and refurbishment occur at precisely the right times, reducing the risk of unplanned downtime and extending the lifecycle of assets.
Predict: Prevent problems, eliminate unplanned downtime
In an ideal world, machines would work at 100 percent capacity, 100 percent of the time. But this isn’t the real world. We live in a world where pistons suddenly stop firing, turbines suddenly stop turning, and you’re always awaiting the next unexpected failure. Face it, when you have hundreds of thousands of moving parts, you’ve got hundreds of thousands of opportunities for things to go awry.
Your job is to anticipate and minimize, if not eliminate these occurrences.
Being able to aggregate IoT sensor and operating environment data about your asset and integrate with sophisticated analytics provides powerful insights into potential failures. Here, data science and algorithms use this data to help you push beyond situational awareness and into prediction. This means predicting failures and understanding when they might occur – weeks, days or even months ahead of the event. You will be able to intercede early to prevent unscheduled downtime and reduce the high cost and organizational disruption of emergency repairs that can result from overtime work by technicians, the last-minute acquisition of replacement parts, and deferrals of other maintenance activities.
Increasingly, it is possible to predict failures and when they might occur — weeks, days or even months ahead of the event. With this information, you’re able to intercede early to prevent unscheduled downtime. And by doing so, you can reduce the high cost and organizational disruption of emergency repairs that can result from overtime work by technicians, the last-minute acquisition of replacement parts, and deferrals of other maintenance activities.
Monitor remotely with IBM Maximo Asset Monitor
Assess health with IBM Maximo APM Health
Predict with IBM Maximo APM Predict
For more information about Asset Performance Management and how IBM Maximo can help your organization better manage its physical assets, speak to your IBM representative or contact us.
We’d be happy to provide an assessment of your current operations to determine how you can leverage the benefits of IoT and AI.