Skip to main content

The 7 guiding principles of a Maintenance 4.0 strategy

Formulating a digital strategy is not easy, but these guidelines can help you get off the sidelines and into the game.

By Eitan Vesely and Deddy Lavid (Ben lulu), Presenso

It is not uncommon for organizations to struggle with many issues related to digitalization. With the hype around digitalization at fever pitch, it is easy to become overwhelmed by the multitude of options available in the marketplace. But the strongest contributing factor to implementation challenges is a failure to devise a strategy for an extensive period of uncertainty.

Formulating a Maintenance 4.0 strategy is not easy. An aggressive strategy based on overinvesting in unproven technologies or a conservative strategy of merely waiting on the sidelines are unrealistic options.

Guiding principles


The seven guiding principles for a Maintenance 4.0 strategic plan are:

1. Invest based on the business case

The primary obligation to shareholders does not change just because of the changes occurring within the manufacturing arena. What does this mean from a practical perspective? Strategic choices require due diligence and investments must be made based on expected returns to the business. If you cannot justify the investment to your shareholders, it should not be made.

2. Take an incremental approach

Adopting Maintenance 4.0 does not mean eliminating existing processes and technologies. Yes, there are legacy systems that are no longer effective, but the default should be to adopt existing practices. It’s likely that your organization already uses some so-called Maintenance 4.0 practices. Big bets on new, still-evolving product categories should be minimized.

3. Upgrade existing maintenance practices

In support of incrementalism, industrial plants should evaluate maintenance best practices that can be adopted in parallel to Maintenance 4.0.

4. Adaptability

The fast pace of innovation has significant implications for industrial plants adopting a new strategy. Will a solutions breakthrough that occurs in 2020 be redundant by 2025? An accelerated speed of change is the new normal, and companies must identify ways to incorporate new Maintenance 4.0 solutions while minimizing disruptions to operations.

5. Data as an asset

Big data is the oxygen of Maintenance 4.0. Although vast amounts of data are generated by sensors embedded within industrial machinery, most of the data is not yet used today. A guiding principle for a Maintenance 4.0 strategy is that data governance practices must be instituted and the underlying value of operational data should be captured.

6. O&M collaboration

Successful implementation of Maintenance 4.0 cannot happen unless the views of plant-level employees are considered as part of the requirements process. Without allocating resources to training and onboarding, Maintenance 4.0 will be stuck in the planning phase.

7. Share risk with external vendors

Industrial players are unable to keep up with the rapid pace of change. Fortunately, OEMs and other service providers are finding ways to address market opportunities and overcome challenges to their own underlying businesses. Industrial plants should spend the time understanding the strategic road map of their most important OEM suppliers and consider mutually beneficial ways to align investments and plans.

Setting your strategy


In Figure 1, the S curve of technology innovation is applied to the Maintenance 4.0 strategy. The S curve refers to the stages of a new technology’s performance as it matures. In the first phase, it evolves slowly. After a breakthrough occurs, performance improves rapidly. Next, the pace of improvement declines. Finally, with maturation, greater performance is difficult to achieve.

It should be noted that the S curve is not an exact model, and not all technologies follow the curve. Given the pace of innovation, even if Maintenance 4.0 follows the S curve, there is no way of knowing the duration of Rapid Improvement 4.0 (Stage 2). One can look back at this period as merely the beginning of emergence, attributable to new areas of innovation in the data-science discipline – specifically automated machine learning.

Three strategic postures for applying good strategy in uncertain business environments are articulated in the HBR article “Strategy Under Uncertainty” (see Figure 2):

  • Shape the Future – Shapers are organizations that drive their industry toward new structures.
  • Adapt to the Future – Adapters choose where and how to compete within the given structure.
  • Reserve the Right to Play – Organizations invest incrementally to “stay in the game” without committing to new strategies.
These models also can be applied to plants adopting Maintenance 4.0 practices. Let’s review each.

Reserve the right to play

With this approach, industrial players build intelligence around new solution offerings without altering current practices. Although this option seems to be the safest approach, it may be the riskiest. Plants that wait and expect to catch up at a later date may miss the financial and competitive advantages of adopting Maintenance 4.0. Sometimes, strategic patience is a virtue; other times, it is a mistake.

Shape the future


Similarly, there is an obvious downside for industrial plants that pursue “shape the future.” Industrial plants that have built their own internal machine learning capabilities fit into this category. It requires significant investment in recruiting big data scientists and building out Maintenance 4.0 competencies. At the same time, the level of investment and risk may not justify the potential reward, especially because newer solutions may provide the same value at a lower cost.

Adapt to the future

This approach is the middle path for industrial plants. These organizations recognize the uncertainty associated with disruptive technologies and position themselves to react when opportunities emerge. Of equal importance is how to fit this Maintenance 4.0 into existing processes.

Conclusion

How is this relevant for Maintenance 4.0? With Maintenance 4.0 in its infancy, industrial plants may be tempted to wait on the sidelines until solution winners and losers can be easily identified. This is a bad idea. The average industrial plant misses 17 days in production every year, costing billions of dollars in lost revenue. If the cost of downtime for one minute of production in the automotive industry can reach $50,000, the risk of not pursuing Maintenance 4.0 is far greater than the risk of waiting.

 

About the Authors: Eitan Vesely and Deddy Lavid (Ben lulu)

Eitan Vesely is a co-founder and CEO of Presenso, and Deddy Lavid (Ben lulu) is a co-founder, CTO, and VP of data science at Presenso. They co-authored the Maintenance 4.0 Implementation Handbook, from which this article was excerpted. The book will be available this fall at www.mro-zone.com.

Source: https://www.plantservices.com/

Comments

Popular posts from this blog

John Crane's Type 28 Dry Gas Seals: How Does It Work?

How Does It Work? Highest Pressure Non-Contacting, Dry-Running Gas Seal Type 28 compressor dry-running gas seals have been the industry standard since the early 1980s for gas-handling turbomachinery. Supported by John Crane's patented design features, these seals are non-contacting in operation. During dynamic operation, the mating ring/seat and primary ring/face maintain a sealing gap of approximately 0.0002 in./5 microns, thereby eliminating wear. These seals eliminate seal oil contamination and reduce maintenance costs and downtime. John Crane's highly engineered Type 28 series gas seals incorporate patented spiral-groove technology, which provides the most efficient method for lifting and maintaining separation of seal faces during dynamic operation. Grooves on one side of the seal face direct gas inward toward a non-grooved portion of the face. The gas flowing across the face generates a pressure that maintains a minute gap between the faces, optimizing flui...

Pump Shaft Breakage: Case Studies and Solutions

By NTS Pump shaft breakage is a common issue that can cause costly downtime and repairs in various industries. In this article, we will explore several case studies of pump shaft breakage and the solutions implemented to prevent future failures. Case Study 1: Chemical Processing Plant A chemical processing plant experienced repeated pump shaft breakages in their cooling water pumps. Investigation revealed that the pumps were not properly aligned with the motor and had excessive vibration due to the misalignment. This caused the pump shaft to fatigue and break over time. The problem was resolved by realigning the pumps and installing vibration monitoring equipment to detect any future misalignment or excessive vibration. Case Study 2: Wastewater Treatment Plant A wastewater treatment plant had issues with pump shaft breakage in their sludge pumps. The pumps were designed with a straight shaft and lacked a flexible coupling, causing excessive stress and vibration on the pump sha...

Motor Failures: Common causes and solutions

Bearing failures Bearings are small compared to other major motor components, making them particularly vulnerable to damage and wear. It’s no surprise, then, that studies blame more than half of all motor failures on bearing malfunction, most of which result from too little or too much lubrication. The key to avoiding these conditions is to establish a lubrication program using bearing and motor manufacturer guidelines to determine the frequency and amount of lubrication for the motor application, duty (continuous or intermittent), environmental conditions, and bearing size. Another significant cause of bearing failure is misalignment, the effect of which increases by the cube of the change. For example, an alignment value that is twice the new installation tolerance will reduce bearing life by a factor of 8 (2^3). The solution is simple: align the motor and driven equipment to new or better installation tolerances. Bearing currents are typically caused by dissymmetry ...

Why Pump Shafts Often Break at the Keyway Area

By NTS Pump shaft failure can lead to significant downtime and repair costs in industrial plants. One of the most common locations for pump shaft failure is at the keyway area. In this article, we will explore the reasons why pump shafts often break at the keyway and what can be done to prevent such failures. The keyway is a high-stress point (weakest point)  on the shaft, where a key is inserted to transmit torque between the shaft and the pump impeller or coupling. During operation, the keyway experiences cyclic loading that creates a bending moment in the shaft, which is concentrated in the keyway area. Over time, this cyclic loading can cause fatigue failure in the shaft material, leading to a fracture at the keyway. In addition to cyclic loading, other factors can contribute to shaft failure at the keyway. Improper keyway design or installation can lead to stress concentrations or inadequate clearance between the key and keyway . Misalignment or overloading can also cause ex...

Benefits of Remanufacturing bearings

Replacing bearings can prove to be expensive, both in new bearing cost and lost productivity. Some manufacturer takes bearings and expertly remanufactures them to like-new condition for extended service.