Operational Effieciency Pressures Drive the Use of EAM

Top performing firms are driven by their need for operational efficiency. This phenomenonis perfectly illustrated by the simultaneous need for cost reduction in production and, at the same time, the need to drive revenue growth. To top it off, mass produced, individually configured products must be delivered in an environtment, rife with last minute order changes, where time-to-market is at a premium.

Driven by the need to execute flawlessly and improve operational efficieny, Best-in-Class firms are turning to enterprise asset management solutions. By definition, flawless execution requires outstanding asset health (reliability, availability, serviceability) and real-time visibility into factors that influence asset performance. An EAM solution is key to meeting this goal, and is arguably the best means to utilize the Internet of Things (IoT), as well as advanced analytical and cognitive technologies to improve asset health and keep the whole plant healthy.

EAM’s overarching goal is to improve asset health via asset reliability and availability, so that unplanned downtime is minimized. The cost of unplanned downtime can be devastating, ranging from an estimated $10,000 to $250,000 per hour for industrial plants.

Unplanned downtime is a major source of additional costs and inefficiencies in any organization. Unplanned downtime also involves many chained dependencies, and these extra costs add EAM capabilities enable the servicing or repair of devices before they fail and negatively impact operational efficiency or safety. In addition, analytical insights enabled by EAM for preventive / predictive maintenance lower maintenance costs while mitigating operational risk.

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