In this second part of The Value of Asset Management, we look at asset management through the lens of operator rounds – these highly agile and effective tools that ensure the efficient performance of inspection activities in line with organizational standards – and how the two processes combine to deliver immense value.
This value is echoed in a research report released by McKinsey in late 2022. The report ‘Transforming advanced manufacturing through Industry 4.0’ highlights how a luxury vehicle manufacturer managed to reduce critical asset unplanned downtime by 25% due to investing in digital performance management and leveraging the potential of intelligent analytics and predictive maintenance. The same report underscores how this level of technology provides companies with agile real-time control that gives them the flexibility they need to adjust approaches, processes, and operations.
By blending digital tools, intelligent insights, smart systems, and strategic approaches, manufacturing firms can improve productivity, reduce costs, and transform asset management and control.
Asset management: Challenges in manufacturing
While asset management is perhaps one of the most critical aspects of any plant’s operations, it comes with its fair share of complexities. You must weave together the multiple threads of machinery, people, buildings, products, production lines, and systems into a cohesive fabric that’s flexible enough to adapt to unexpected changes or unplanned events.
This puts immense pressure on the business. You need to find smart ways of managing employees, data, systems, and devices to ensure that they move smoothly and stay on time and on target. This includes juggling maintenance schedules, inventories, and asset operations and ensuring that asset usage and maintenance are optimized to minimize downtime.
The problem is most companies are still reactive and not proactive, which means that unexpected downtime can cost them thousands. Inefficient plant maintenance and poor asset management can hit your business budget by:
- Limiting visibility into asset functionality
- Relying on paper-based systems introduces a greater risk of errors and potentially limited equipment reliability.
- Data isolation and poor transparency as data and insights sit in silos, preventing proactive maintenance and management of assets
- Delays that impact orders and customer deliveries
- More expensive maintenance as it’s reactive and may force companies to rely on outsourced service providers to resolve issues at speed
This cost to maintenance time is often referred to as ‘wrench time’ and workforces, according to a 2017 article in Efficient Plant, have efficiencies ranging from 18%-74%, which translates to $100 million spent annually on maintenance labor if you have the highly efficient 74%. And that’s just not efficient enough…
When it comes to asset management, you want a solution that:
- Will ensure maintenance is scheduled regularly before systems break down and in line with production schedules
- Leverages the true value of your data and insights to provide real-time risk management and control
- Minimizes lost asset challenges
- Ensures employee safety and wellbeing
- Allows you to flex your production and operations around your assets by creating a more scalable and efficient environment
And where do Operator Rounds come in?
Operator Rounds slot seamlessly into asset management by providing real-time asset visibility alongside access to critical information through a centralized command center. Using operator rounds as a foundational part of your asset management strategy, you can ensure the efficient performance of your inspection activities in line with company standards because you have access to past and current data; artificial intelligence (AI) analytics; and a bevy of powerful tools that enhance decision-making.
A modern and capable operator rounds module should include the following critical elements to support asset management and control:
- A dedicated command center with real-time visibility into operator rounds
- Complete asset visibility and the ability to use past and current data to inform decision-making
- AI analytics with corrective and preventative capabilities built in to ensure enhanced safety and improved performance
- Dynamic workflows that allow for radical improvements in flexibility
- Digital data entry from the field that provides real-time asset status updates, permits, and maintenance action items
- Business intelligence (B) and analytics that measure key performance indicators (KPIs) and the quality of inspection activities
Using operator rounds as part of your asset management strategy, you can track, analyze and manage your asset lifecycles from inspections and maintenance through to standardizing and optimizing processes to ensure more efficient asset performance.
But then, how does this translate into value for my business?
Consider this…studies have found that unplanned downtime costs industrial manufacturers around $50 billion a year. And Deloitte points out that predictive maintenance allows them to optimize maintenance tasks in real-time while maximizing asset lifespans, improving productivity, and reducing disruptions.
There is immense value in an asset management platform that incorporates operator rounds to ensure that you reduce the risks and the financial burden of downtime.
Which is where GOARC comes in. Our asset management platform is designed to help you standardize and optimize your processes to achieve efficient asset management performance. Our tools provide you with what you need to track, analyze and manage all aspects of the asset’s lifecycle – from inspections to maintenance. Our Asset Performance Management Solution delivers 24/7/365 real-time data and insights about your operational status. It is a fully integrated solution capable of analyzing maintenance data, data from Internet of Things (IoT), and data from all connected systems.
Our platform ensures you can track your asset lifecycle to predict failures and performance degradation while evaluating the quality of your inspection activities. We ensure that you gain all the value and optimized efficiencies of a hands-on approach without the additional costs or administrative burden. Combining this platform with our Operator Rounds provides a dynamic and flexible system that ensures your critical assets are always operational.
You can read part 01 of our series, where we unpack how asset management can deliver even more benefits to the business.