Understanding your Assets is Key to Mastering Inventory Management

“By effectively creating value through strategic risk management, organizations can find insight and opportunity. They can also derive value by consistently making better decisions and outperforming competitors.” (Deloitte: ‘Disruption in Manufacturing’,2016).

Servitization – SaaS, EaaS – replaces ‘sell and move on’ commercial relationships with a model that has demonstrated the ability to improve product availability and reduce the cost of ownership, by tying a supplier’s compensation to the output value of the product generated by the customer .

Visibility of assets, onsite and in real time, is critical to managing this process more efficiently.

Currently, many of our customers simply don’t have the data so they need to send out their reps four times a year, all over the world. They spend millions of dollars in travel and replacing parts that may not be broken or even particularly worn,” Hienekamp explains.

Better understanding of the historical performance of assets leads to better management of stock. It helps to avoid both bloated inventory and its dark twin, part shortages, thus reducing or ultimately eliminating supply chain delays completely.An effective servitization strategy relies on data. It must be reliable: reliably sourced, from the right place, and comprehensive. One of the big challenges manufacturers face with data is not so much about availability, as the ubiquity of USB sockets and SPC-ready equipment is ready and willing to provide it. But having it and managing it effectively are not the same thing.

Harnessing the technologies and techniques available with IIoT and Industry 4.0 can enable manufacturers to significantly improve financial and environmental performance, built on gains offered by scheduled preventive maintenance, and ensure they are in the best condition to adapt to and meet market challenges.

IIoT-ready sensors are largely in place on equipment worldwide, especially in the advanced economies. But the data they produce still has to be collected; this has, traditionally, been done manually but manually-collected data inevitably ‘looks backwards’ - information is collected at the end of a shift, at the end of a day, at the end of the week and then collated.

Senseye’s alliance with Endowance means that it can help clients and customers to implement strategies and manage them effectively, to get unplanned machine downtime under control and thus improve performance, profitability, and competitiveness – automatically.

“IACP has Senseye providing condition monitoring. Data is collected from customers’ IIoT-enabled machines and analyzed using Endowance Solution’s Duet360 for IIoT, which identifies events and metrics and sends the information to our customer’s CRM application,” said Hienekamp. “IACP’s protocol is integrated into the customer’s ERP data and rules so it automatically creates service requests and work orders and generates shipment instructions, in line with the service contract.”

In order to get the most accurate picture of how equipment is performing, data must be collected and analyzed in real time. Something like a short-term power surge may otherwise be missed and, along with it, the reason why a component fails.

A particular shift might have been running equipment at 7000 units/hour, rather than 5000, because they want to finish early and get home to their families. Higher strain leads to breakdowns.

“Exactly the same asset may perform differently in Germany or Georgia, in the UK or the USA,” Klaus Kruppel, VP Alliances, Senseye said. “Real time monitoring enables the equipment supplier to identify differences, such as faster running – or slower running, as we had during Covid, followed by too-fast ramp-up to ‘normal’ operating speed –and then to understand and act upon it."

Equipment must be monitored closely, to ensure that usage is within specified parameters and that repairs and maintenance are undertaken to keep the equipment working. IIoT is essential. A successful implementation means that investment in technology is key.

IACP will give the customer better visibility and better management of production capacity, as well as higher levels of uptime; machine downtime will be scheduled and minimized.

For customers who are actively seeking higher levels of machine uptime, IACP is a critical strategic offering


To download a copy of the Integrated Asset Condition Performance report, please click on the image below. 

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