65% of production maintenance costs are money out the window: How do we reduce them?

How to spot a good business case where maintenance costs can be reduced with Industry 4.0 technology? That was the big question answered by two experts at a MADE webinar. Read on for what we learned.

‘If it ain’t broke, don’t fix it’ is the mantra for some manufacturing companies.

Others swear by: ‘prevention is better than cure’ and perform maintenance at set intervals to avoid costly breakdowns.

The vast majority of Danish manufacturing companies rely on ad hoc machinery repairs or on scheduled maintenance, explained Michele Colli, Head of Digital Production, FORCE Technology at a MADE webinar on the subject, adding:

“But we either perform maintenance too often or too late.”

And that is expensive. Research from the 2000s shows that 65 per cent of all maintenance costs stem from unnecessary or improper maintenance – and “recent research shows that the problem is still there,” Colli highlights.

Does digitalisation pay off?

A key to performing more efficient maintenance is digitalisation.

Sensors can help us detect minor errors or anomalies so that we can perform maintenance and adjustments only when these occur.

These might be a difference in machine sound or vibration, an increase in temperature or the least shift in the position of equipment. 

Read how Kaj Olesen A/S, who manufacture fish processing equipment, switched to digital maintenance and saved tonnes of fish (in Danish).

Equipment from Kaj Olesen A/S

Paired with a strong algorithm – fed with a lot of data – this setup can also help predict when a breakdown might occur.

One example is the Siana company’s AI-based sensor setup presented at the webinar. Watch a video on their startup-journey and solution here.

But installing AI-based senor setups costs money. So, does it even pay off?

“Today, we have a good business case – much better than ten years ago – because data is much more available, and the sensors cost less now,” Colli explains.

His colleague, Kasper Stens Honoré, Technical Project Manager at FORCE Technology, adds that the business case is better than it might seem:

What we are finding is that most companies only look at the maintenance policy costs, but forget the downtime costs, efficiency losses, quality costs, and that you could even lose a customer if you don’t deliver on time.

Kasper Stens Honoré, Technical Project Manager at FORCE Technology

How to spot the best business cases

“Overall, the world needs to think more efficiently.”

This doesn’t mean you should install sensors on every piece of machinery in sight, as both experts underline. It pays off more often than people might think, but of course not always.

Colli highlights three analytical tools for identifying the best business cases:

  • FMECA: This tool helps companies spot which machines etc. are causing the most trouble due to failures.
  • Digital Factory Mapping: Using this approach, companies can map their material & information flow to get an overview of potential bottlenecks and prioritise maintenance.
  • Maintenance Cost Analysis: This helps companies decide whether or not it is a good business case money-wise to invest in a new solution or change maintenance policy.

In a MADE Digital Maintenance Programme, 11 companies – both suppliers of digital maintenance products and manufacturing companies – tried out the tools.

“We have switched from time-based maintenance to condition-based maintenance in some places […] The companies shared their experience, and it was very rewarding. I think we gained a lot of valuable insights”, says PTA at Vestfrost, Kurt B. Knudsen, who participated in the programme.

Learn more about digital maintenance and the analytical tool for spotting the best business cases in this MADE White Paper.

Towards Digital Maintenance Webinar

The webinar was held on 20 September 2024.

Presenters:
– Technical Project Manager at FORCE Technology, Kasper Stens Honoré
– Head of Digital Production at FORCE Technology, Michele Colli
– Cofounder and CEO of Siana, which performs AI-based digital maintenance, Mads Harding Gliemann

This webinar followed on from the recently published MADE White Paper on digital maintenance.

Download here.

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