How much money can predictive maintenance really save?

17 March 2016

There’s a tremendous amount of noise about predictive maintenance and how it can save money for manufacturers but it’s often difficult to figure out what is and isn’t hype. Coming by any numbers, let alone from a reputable source can be difficult. Almost every case study published is from a company responsible for selling hardware of software into the predictive maintenance regime so of course the numbers will look favourable. 

There needs to be an undisputable, solid record of the cost savings that can be achieved in manufacturing, from a source that has no possibility of financial gain from their disclosure. Sounds impossible? We’ve found a great answer. 

Integrated Operational Support

First, a quick history lesson. In the early 2000’s, under continuous budget pressure, the UK’s Ministry of Defence (MoD) needed to reduce costs. The tried and tested model of buying equipment and paying for it to be serviced and maintained was extremely costly and with companies like Rolls-Royce pioneering concepts like ‘power by the hour’ (in brief, lease Rolls-Royce engine power rather than buying the engine outright), the MoD boldly embraced this concept across all of their procurement. They would no longer buy assets like helicopters and maintenance contracts to go alongside, instead they would buy things like ‘flight hours’ and be provided by the manufacturers with availability whenever it was required. 

This put a lot of risk on the manufacturers to deliver contracted availability. The only way this could be done was through working closely with their customer in understanding how the assets were used (collecting data) and employing predictive maintenance to help them determine times for opportunistic maintenance and life extension. The broad concept is called Integrated Operational Support (IOS) by one of the worlds leading helicopters manufacturers, AgustaWestland. 

But how much can it save?

As I mentioned, it can be a difficult question and it’s often hard to trust the source. Thankfully, AgustaWestland was asked this exact question, in the UK Parliament in 2009:

“savings of greater than 10% and 20% respectively was demonstrated [Sea King and Merlin helicopters]” – UK Parliamentary Select Committee - 2009

This quote isn’t specific to maintenance savings, it is overall savings in operational costs, achieved through an extensive data collection and predictive maintenance regime powered by sophisticated prognostics and condition monitoring. 

It’s hard to argue with those results. 

Tell me more

We’re working with world-leading industrial companies to help them embrace the advantages that Senseye can bring to machine failure forecasting. Interested? Then request a demo to find out more.

 

 

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