Utilizing advanced asset management technologies to improve productivity and lower maintenance costs

In order to achieve production commitments, industrial manufacturers are increasingly turning to plant asset management to improve their process efficiency, reduce maintenance, and enhance return on assets (ROA). The once common "run-to-failure" maintenance strategies of old have now become "condition-based," as manufacturers are moving to implement proactive maintenance philosophies. The benefits of implementing a plant asset management strategy can be tremendous. According to a June 1999 ARC study, companies are reporting as much as a 30 percent reduction in maintenance budgets and up to a 20 percent reduction in production downtime as a result of using a plant asset management strategy. With as much as 40 percent of manufacturing revenues budgeted for maintenance, these savings can significantly contribute to the bottom line. By using a plant asset management system to gather data on current and future condition of vital production assets, plant personnel can quickly make better-informed maintenance decisions. For instance, they can better assess the risk of unexpected production outages and schedule and plan future maintenance activities. To companies, the benefit is an increase in total production output and a reduction in the cost per unit of output.