How much should my company invest into condition monitoring and prognostics?
Condition monitoring (CM) and prognostics solutions can be costly, it’s easy to spend than the cost of the machinery – but how much should you be spending and how do you know that the solution represents good value? When considering investing in a predictive maintenance solution, it’s important to understand the potential savings for your business before looking at how much to budget. If the numbers don’t add up, then you may need to rethink your CM ambitions.
Calculating potential savings
The fundamental case for CM is that it saves you more than it costs. Discounting safety-cases in industries such as oil & gas and aerospace, there are two areas where cost savings can be achieved:
- Firstly, you need to understand the current cost of downtime in your business. At a base rate, a CM solution should reduce this level by at least 20%, but over time this can extend to 40-50%.
- Secondly, you should consider the value of your assets and the saving that can be achieved by extending the asset life.
ROI is also an important factor when investing in a solution. Essentially, this brings a defined timescale to the budget calculation – and organizations are increasingly demanding payback within the same financial (budget) year as the investment. This makes the calculations and ongoing measurement in place even more critical, balancing the potential savings and the upfront and ongoing costs of a solution.
An evolving journey of continuous improvement
When starting out, you should understand the benefits and limitations of sensor solutions and where they are going to deliver value. You may decide to start small, focusing on one particular high-value or criticality asset to demonstrate the value of the CM solution and learn from the process, then look to extend more widely. We’ve previously shared 6 tips on choosing the correct data for successful predictive maintenance to help you with this.
Essentially, CM is an evolving journey. Over time, regular scheduled maintenance will be reduced and preventative jobs will increase to provide a forward-looking approach with a much better understanding of the current and future condition of your machines at any given time.
Shifting CM and prognostics from CAPEX to OPEX
CM and prognostics solutions can get expensive; with some in excess of half a million dollars just to get started, presenting a challenging ROI target. Senseye is a revolutionary cloud-based solution, offering automated CM and prognostics analysis on a monthly subscription basis at a fraction of the price. This isn’t a watered-down option; the savings are made through being based in the cloud, reducing the need for expensive hardware; utilizing machine learning, allowing for economies of scale; and through the use of a simple user interface designed for maintenance teams (rather than data scientists) to work with, cutting out expensive user training and external configuration costs.
How much should you invest in CM and prognostics?
The simple answer is that you should make the correct investment for the return you’re likely to achieve in these areas:
- Safety improvement
- Reduction in downtime
- Extension of asset life
The flexible options now available with Industry 4.0 / the Industrial Internet of Things mean that you can start small, demonstrate the value, and then scale up with confidence.
Click here for more information on what Senseye can do for you or download our white paper Harness the Power of Prediction: Maximise ROI with the right Condition Monitoring Solution here: