Digital Manufacturing, Industrial Internet of Things (IIoT), Smart Manufacturing, Industry and/or Manufacturing 4.0 are a few of the buzzwords that have become pervasive in the industrial- equipment asset-management space. We are all excited. Even CEOs have been known to issue somewhat vague marching orders to “get some digital manufacturing.”
On the surface, Digital Manufacturing is especially intriguing, given its promise of a wide variety of wondrous internet-enabled services and capabilities for plants and facilities. However, like many in the RAM community, I’m old enough to remember the formation of the dot.com bubble starting in 1995 and its ultimate bust in 2000. Let’s explore the parallels between the dot.com era of the late 1990s and the Industry 4.0 era of the late 2010s and avoid any associated pitfalls.
During the dot.com bubble, websites were going up for everything, including venture capital, in particular, the NASDAQ stock exchange. In hindsight, which is always 20:20, we saw a lot of dot.com companies where the value proposition in terms of providing actual services that people wanted AND were willing to buy was a little thin.
Make no mistake, the dot.com era transformed our lives. Our world and the way in which we obtain information, transact business, communicate with our friends, relatives, colleagues, and clients/customers has forever changed. The dot.com companies that provided real value thrived, and many still survive to this day. Those that failed the red-face test of delivering bankable value were “shiny objects” that caught the attention of investors, but they didn’t stand the test of time because their value proposition was too vague or, in some instances, completely nonexistent.
A LESSON FOR TODAY AND TOMORROW
So, what’s the lesson for equipment-asset managers? There are plenty of technologies being released under the umbrella of Industry 4.0 and all of its synonyms. You need to ask yourself three simple questions: 1) Does this technology really help an asset manager run his or her plant better? 2) Can this technology help me run my plant better? and 3) How much of this technology do I and/or my organization need and where is it needed?
Ultimately, as equipment-asset managers, we have a few simple objectives. First, we need to ensure reliability production by assuring equipment availability requirements are met; that we can produce at the required yield rates; and that the production meets our quality requirements. Additionally, we must ensure that we contain the life-cycle costs of asset ownership in the process of delivering on our production goals. And, of course, we must ensure that the equipment assets are safe and produce acceptable environmental impacts. In essence, to be worth implementing, an Industry 4.0 technology must enhance production, cost management, safety, and/or environmental performance, as well as deliver a favorable return on investment (ROI). Industry 4.0 doesn’t change this fundamental of good business: A change must deliver value.
To be more specific, we should be evaluating Industry 4.0 technologies and prospective investments relative to their ability to deliver real and tangible value to the organization. Think of the following bullet points as a punch list to help you start the analysis process.
♦ Automated work notifications. In some instances, technology can enable the machine to create its own notifications indicating the need for adjustment, lubrication, repair, etc. This reduces inspection labor and work notifications tend to be more timely.
♦ PM rationalization. Preventive maintenance (PM) tasks and intervals are often a byproduct of guesswork and, in some cases, knee-jerk reactions to a previous failure. The intelligence from data and sensors can help to rationalize PM expenditures and eliminate PMs that don’t add value or, in some instances, that even cause damage.
♦ Defect management and machine life extension. Industry 4.0 technologies can enable enhanced control over the root causes of machine failure, which extends equipment life and significantly reduces the total life cycle of ownership.
♦ RUL prognostics. The “RUL” acronym stands for “remaining useful life.” Some machine components and materials, e.g., lubricants, wear out as a function of time. Technologies and access to information that fall under the umbrella of Industry 4.0 can enable accurate condition-enabled maintenance actions, replacing guesswork-driven approaches from the past.
♦ STO scope, interval and duration optimization. The goal for a shutdown, turnaround, or outage (STO) is to minimize duration, minimize cost, and to get back to making A-quality product as quickly as possible. As such, managing scope is vital. Among other things, ndustry 4.0 enables more refined scope-management decisions and risk-based inspections (RBIs).
♦ Optimized design and acquisition decisions. A machine’s design is its DNA , i.e., the genetic code that defines the asset’s inherent reliability. Intelligence provided by Industry 4.0 can drive more informed and precise design decisions.
♦ Allocation of redundancy, critical spares and inventory buffer risk mitigation. The primary goal of asset-reliability management is to reduce risk to the organization. However, the resources to manage these risks are scarce and must be allocated wisely. Intelligence derived from Industry 4.0-enabled technologies can drive better resource allocation decisions that to mitigate the greatest amount of risk per invested dollar.
♦ MRO supply optimization. Parts, materials, and consumables required to operate equipment assets aren’t all (or always) created equal. The intelligence derived from Industry 4.0 technologies help us see which supply partners, including rebuild shops, provide the greatest value in terms of assuring the reliability of our equipment assets.
BOTTOM LINE
I’m a big fan of making informed, data-driven decisions. The technologies available under the Industry 4.0 umbrella can be a real difference-maker in driving value for your organization. Conversely, I’m not a fan of buying technologies for the sake of buying technology or, as I’ve written before, of chasing “shiny objects.”
It’s important to work up a sensible plan for your Industry 4.0 integration. Don’t become intoxicated by the trappings or slick talk around the offerings flooding the marketplace. Carefully consider how a technology or group of technologies can help you serve your organization’s equipment-asset-reliability objectives.TRR
ABOUT THE AUTHOR
Drew Troyer has 30 years of experience in the RAM arena. Currently a Principal with T.A. Cook Consultants, he was a Co-founder and former CEO of Noria Corporation. A trusted advisor to a global blue chip client base, this industry veteran has authored or co-authored more than 250 books, chapters, course books, articles, and technical papers and is popular keynote and technical speaker at conferences around the world. Drew is a Certified Reliability Engineer (CRE), Certified Maintenance & Reliability Professional (CMRP), holds B.S. and M.B.A. degrees, and is Master’s degree candidate in Environmental Sustainability at Harvard University. Contact him directly at 512-800-6031 or dtroyer@theramreview.com.
Tags: reliability, availability, maintenance, RAM, Digital Manufacturing, Industry 4.0, Smart Manufacturing, Manufacturing 4.0,
