It is a chaotic world out there for automotive manufacturers. Automotive OEMs (original equipment manufacturers) and TIER 1 suppliers have to deal with up to 800 hours of downtime annually. These downtimes are unwelcome in every way as they have not been accounted for in the overall asset management plan.1-minute #downtime in the auto industry can alone translate to a loss of $22,000 #IIoT @Datarpm Click To Tweet
According to Justin Hester, Senior Researcher – IoT Laboratory, HIROTEC Corporation “Industry benchmarks in North America show that the cost of unplanned downtime to automobile OEMs is $1.3M per hour which is almost $361 per second. Imagine if reporting a single issue requires a 3-minute phone call, OEMs can lose $70,000 just to tell someone that there is a problem!.”
Keeping the automotive engine running smooth – Predicting asset failures on time
These facts just reveal the enormous impact of unexpected asset failures to manufacturers in the automobile industry. The automotive industry is one which has seen the maximum upheaval in every aspect. This asset-intensive industry has witnessed a dramatic turnaround from the manner in which automobiles are manufactured to the way technology is being used to deliver the goods globally. Where once automobile production lines mass-produced nearly identical products, times have radically changed where customization is the new norm and a basic expectation across all auto-segments.
For an industry bustling with a variety of complex operations and random disruptions, let’s now move the spotlight from the center stage to behind the scenes where all the action takes place. Why is it so critical to protect your automotive industrial assets and why is the process itself so complex? Most importantly how grave can the consequences of such unplanned breakdowns be for this industry?
Every automotive OEM (original equipment manufacturer) and TIER 1 Supplier strives to match up to the dizzy almost inconceivable industry expectations of judiciously managing the machinery, material, equipment and all that technical jazz that goes into getting that swanky dream machine out in the market.
Automotive industrial assets have a legacy of being complicated in nature due to their inherent unpredictable nature. Firstly it is difficult to actually visualize the existing asset infrastructure that an organization currently has and then draw up an optimum maintenance plan for each asset combatting over and under maintenance issues. The next hurdle is to get a sense of the optimum performance levels of the asset which can affect the inherent design capabilities of the asset itself and then decide how best to operate within the operational ranges to optimize the overall automotive asset life cycle. The next aspect involves assessing, managing and controlling the associated risks for each asset to finally create the most optimal asset management system which holistically takes into account each asset’s innate deficiencies and areas of improvement.
Well, let’s just say it’s not the easiest task to create an optimum automotive asset management plan which conquers the above risks and is capable of conquering unplanned downtimes, fluctuating maintenance schedules, and unperceivable outages. It is a bumpy ride indeed!The Battlefield called #Asset #Failure Management #Cognitive @WhatIfSundeep #IIoT Click To Tweet
According to Business Insider, a 1-minute downtime in the auto industry can alone translate to a loss of $22,000!
When it comes to the automotive industry, speed and time of delivery are most crucial. For example, an important success factor is the order-to-delivery (OTD) time which means in order to speed up sales and to lower costs, automotive manufacturers need to reduce OTD. And what further thickens the plot is that any unplanned stoppages in the operation cycle can be disastrous to overall maintenance schedules and delivery expectations. Automotive OEMs have to think on their feet, transforming their production processes by extracting every ounce of efficacy from their assets.
And do you know the biggest showstoppers to this perfectly envisioned asset management plan?
Unplanned outages and downtime which are the biggest causes for asset failures across multi-million dollar industries. And as the key decision maker for automotive operations and strategy in your organization, you definitely would be interested in visualizing the dent created by these monstrous evils.
A recent survey of more than 250 strategic IT decision makers reveals shocking numbers- though the typical asset downtime reported lasts about 87 minutes, 72% of these applications are actually not even intended to experience more than 60 minutes of downtime! Unplanned outages can be fatal to a factory, especially for the automotive sector where assets are the heroes.
Further, since asset management accounts for 20-30% of a company’s operating expenses and 15-20% of its capital expenditures, not having a well-structured asset failure management plan to optimize asset utilization can plunge down your savings significantly.Biggest showstopper for #automotive asset failure management - #unplanned downtime #IIoT Click To Tweet
Shifting gears towards cognitively driven zero outages
With the above startling facts and figures in perspective, it is imperative for automotive OEMs to take the reigns of their asset failure management strategy and push the pedal on the best predictive maintenance plan. A foolproof cognitive asset failure predictive plan not only carries the ability to maximize the reliability and availability of factory assets and reduce unintended downtime, it can also boost assembly line uptime by enabling early detection and prevention of the failure in an automated environment.
A recent survey by SCM World and Cisco reveals an interesting insight about auto manufacturers where production and manufacturing equipment was listed as a top priority for IIoT connections with 62% planning to connect their industrial assets by 2020. This basically implies that such calamitous unplanned downtimes and outages could simply be avoided if data from the connected machines was available to anticipate the failure so a planned repair could take place during a standard maintenance window.
The fascinating thing about cars is they offer a powerhouse of information, assembling data taken from the driver, the actual vehicle itself, the environment in which they operate and any devices that may be connected. Did you know that a single hybrid plug-in vehicle can generate easily upto 25 gigabytes of data in just one hour! The sensors embedded carry an ocean of data streams each of which has the potential to be analyzed to create deep meaningful results.
Today, the Industrial Internet (IIoT) has unlocked trillions of nodes of valuable data through machine sensors and powerful equipment signals which are waiting to be tapped to generate real dollar value. And this opportunity is intensified especially in the automotive industry. Automotive manufacturers are beginning to prioritize their IIoT efforts to something which is not possible by using the human scale and needs a machine learning approach.
With this wealth of valuable information available, why not seize the opportunity to create a seamless cognitive asset failure management plan which can not only protect your valuable industrial assets in an automated manner but also predict unplanned failure and downtime even before they occur, without depending on any manual intervention?
Time to fix your existing automotive asset gearbox to insulate your P&L
Before embarking upon this journey, it is important to evaluate the current state of affairs. Is your existing automotive asset failure management strategy giving you the right mileage by creating a positive impact on your bottom line? Are you in complete control of predicting unplanned downtime to achieve minimal outages using a 100% cognitive approach? What about your automotive asset health and overall equipment effectiveness (OEE)?
The answers are hidden behind your factory doors amidst the sprawling auto- asset infrastructure.
Start with this comprehensive checklist to evaluate the strength of your current asset management program and zip towards higher automotive plant efficiency sparked with zero unplanned outages.