Suppose you’re in logistics for an equipment manufacturer or a maintenance manager in an operating plant, and a geek in your office keeps talking about the Internet of Things (IoT). Here is why you should listen:
The underlying technologies are available with no needed breakthroughs
Major companies such as IBM, Cisco, GE have IoT programs with product development and marketing campaigns
The potential business benefits for OEMs and end users are strong. The technology could help end users improve equipment reliability and reduce spare parts inventories, and help OEMs sell more services at higher margin
By offering IoT-enabled condition monitoring, spare parts, and equipment repair services, equipment OEMs can remotely monitor asset health in their customers’ plants, anticipate failures, order the parts, and often execute repairs before the failure occurs. This provides an ongoing, services-based revenue stream for OEMs, while enhancing customer uptime and overall satisfaction.
Fewer unplanned equipment failures mean the OEM doesn’t have to keep as much spare parts inventory on hand for quick response to emergency repairs. Also, fewer emergency calls mean more spare parts inventory can be in a centrally located warehouse, rather than in regional or local depots.
Reduced Unplanned Downtime
Machine downtime, particularly unplanned downtime, is a key impediment to production performance. Sixty-seven percent of respondents in an ARC survey on Enterprise Asset Management (EAM) cited improved machine uptime as a primary business driver behind purchasing EAM software.Read more