As industrial automation continues to digitse, one area in particular is becoming a critical area of concern– unplanned downtime. The shift to outcome-based business models, IoT sensors on connected equipment, and of course, the pervasive and increasing reliance on machines, are all adding to the pressure to avoid outages. Mitigating downtime is a critical, strategic priority in the digital age.
Thankfully, technology has finally caught up to address the problem. IoT enabled connected service is closing this downtime gap. – which is important because it’s not only costly, it’s a fundamental step in an organisation’s digital maturity, and a core part of their transformation journey, says Mark Homer, vice president Global Customer Transformation for ServiceMax, a GE Digital company.
The growing reliance on automation is already widening performance gaps. Businesses are losing sight of assets, especially in terms of efficiency, leading to a fractured insight of manufacturing or service delivery. The upshot is that unplanned downtime becomes a real problem and even worse, the lack of visibility leads to an unnecessary lengthening of recovery time. Closing this downtime gap is a fundamental step in an organisation’s digital maturity, and a core part of their transformation journey.
According to a new Vanson Bourne global study After The Fall: Cost, Causes and Consequences of Unplanned Downtime, 82% companies have experienced at least one unplanned downtime outage over the past three years, and two on average. These outages have lasted four hours.
Depending on the company and type of equipment, this can cost organisations anywhere from $50k (€42.56k)-$150k (€127.69k) per hour for say, a medical device company, and up to $2 million (€1.70 million) for a major outage on an industrial critical asset. (Aberdeen estimates the cost across all businesses to be $260,000 (€221323.69) an hour). The research also revealed high levels of asset estate ignorance across organisations, with seventy percent of companies lacking full awareness of when equipment is due for maintenance, upgrade or replacement.
In addition to financial losses, the research found that almost a third of respondents said they were unable to service or support specific equipment assets, while 65% of respondents from the energy and utilities sector, and 62% from the medical sector cited losing the trust of their customers as a possible impact of suffering a high-profile incident or disaster. Across all sectors, around one in ten admitted their company would never recover from such critical incidents and would ultimately cease to exist.
Nobody wants to be blindsided with those sorts of numbers. But what are companies doing about it?
The research hints at a tipping point in recognition of the problem and planned investment to address it. Over time, zero tolerance and zero unplanned downtime will become the norm as companies develop and invest in their industrial digital strategies. Key to this, is an understanding of and investment in field service management and asset performance management capabilities.
According to Vanson Bourne, eight in ten companies have already recognised this, at least that digital tools can improve visibility of assets and help eliminate unplanned downtime. Around 50% of […]
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Read more here:: www.m2mnow.biz/feed/Posted on: November 22, 2017