Research indicates that 75% of plants in operation today employ reactive instead of proactive maintenance plans, indicating a systemic failure across asset-centric organizations that lack a comprehensive enterprise-wide strategy for managing physical assets.
This approach to managing production assets is more than a subtle failing; it’s costing our global economy billions of dollars, not to mention impacting every company’s bottom line. When combined with other aspects of asset risk, businesses are leaking millions of dollars every day. A study by ARC estimates the costs of poor asset performance management (APM) to be a full 1.5% of sales revenue.
Fortunately, APM is a proven mechanism to stop this leakage and align organizations for maximum profit protection.
An effective APM strategy is more than a series of sensors or point solutions that monitor and track your systems: APM is an integrated, connected solution for leveraging people, processes and technology to improve reliability, enhance productivity and maximize safety.
Below are the four most common gaps that companies face with APM initiatives. If your business suffers from even just one of these, it’s time to update your approach to the management of physical assets.
- Point solutions: Do you have a multitude of software applications and/or excel spreadsheets focused on disparate parts of asset management? Do different, unconnected monitoring tools keep watch over different sets of equipment? If so, you are missing tremendous efficiencies that can be found when a single foundation enterprise solution ties together all information from across the business.
- Uninformed decisions: Are your business leaders making decisions with incomplete information? Do they have access to global equipment benchmarks and performance metrics for assets across the enterprise? How confident are they in their operations and maintenance planning and scheduling? Even the most educated guesses are still guesses. Data-driven decisions lead to fewer errors and better operational returns.
- Single site: Are your maintenance and operational analytics connected enough across your fleet to look across equipment in every single one of your sites? How much more effective would, for example, defect detection or root cause analysis be with more data from across the organization? Single-site solutions miss the opportunity to find patterns that can alert you to risk in geographically dispersed locations and capture and share valuable asset insights throughout the enterprise.
- Siloed data: How much work is required to bring together data from across different business units? The lack of connectivity in enterprise-wide solutions leads to manual data manipulation that takes time, effort, and attention away from the bottom line.
If any of these issues are impacting your company, Asset Performance Management from GE Digital is here to help. Learn more.