Asset management: Is your company the best at managing equipment, parts?

A new survey by Aberdeen Group Inc. measures the value of visibility and provides data that can help manufacturers benchmark their own operations.

05/16/2007


Boston, MA--Manufacturing plants with a lot of equipment and spare parts have been investing heavily in asset management and maintenance software over the years. While these investments have measurable returns on investment, the opportunity cost of not having real time visibility to assets on the factory floor is not as well-known. A new survey by Aberdeen Group Inc . measures the value of visibility and provides data that can help manufacturers benchmark their own operations.

To compete effectively, says Aberdeen, it is not enough that manufacturing enterprises have real-time visibility to asset data; they need to incorporate the real time information into the overall business processes to ensure that factories are loaded correctly and optimal spare parts inventory is maintained at each factory. Why?

In one case, a manufacturer faced with increasing spare parts inventory holding cost implemented real time integration across plant floor automation and ERP (enterprise resource planning) systems. After initially implementing it at one plant, the company adopted this across the enterprise and realized a one-third reduction in spare parts inventory costs in a matter of months. This resulted in the several million dollars of working capital savings, while meeting asset utilization goals.

By benchmarking over 200 manufacturing enterprises, Aberdeen Group will categorize and analyze those manufacturers which are among the top 20% of performers in weighted average across a range of KPIs (key performance indicators). Engineers and business managers who contribute their company’s perspective will receive a free copy of Aberdeen’s previous benchmark report (“The Enterprise Value of Plant floor Visibility: Empowering Executive Decision Makers”) as well as the EAM report, which encompasses the new data.

“By examining specifically how best in class manufacturers align to the hypothesized PACE framework, Aberdeen will be able to identify the specific strategic actions, business capabilities, and technology enablers that foster best in class performance. Additionally, these insights will allow Aberdeen to correlate these best in class results to “required actions” for manufacturers still aspiring to best in class performance levels,” said Heather DalleTezze, research analyst.

Seventy-seven percent of respondents to previous research cited improving asset utilization as a key strategy for reducing manufacturing costs overall. The key benefits of successful real time asset management are:

• Improved overall equipment effectiveness

• Reduced spare parts inventory holding costs

• Improved on-time delivery.

Are companies that leverage capabilities to integrate business systems with plant floor automation across the value chain in real time better positioned to perform at Best-in-Class levels? Contribute your experience to find out.

—Edited by Renee Robbins , editorial director, Control Engineering Weekly News
( Register here





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
Each year, a panel of Control Engineering editors and industry expert judges select the System Integrator of the Year Award winners.
Control Engineering Leaders Under 40 identifies and gives recognition to young engineers who...
Learn more about methods used to ensure that the integration between the safety system and the process control...
Adding industrial toughness and reliability to Ethernet eGuide
Technological advances like multiple-in-multiple-out (MIMO) transmitting and receiving
Virtualization advice: 4 ways splitting servers can help manufacturing; Efficient motion controls; Fill the brain drain; Learn from the HART Plant of the Year
Two sides to process safety: Combining human and technical factors in your program; Preparing HMI graphics for migrations; Mechatronics and safety; Engineers' Choice Awards
Detecting security breaches: Forensic invenstigations depend on knowing your networks inside and out; Wireless workers; Opening robotic control; Product exclusive: Robust encoders
The Ask Control Engineering blog covers all aspects of automation, including motors, drives, sensors, motion control, machine control, and embedded systems.
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
News and comments from Control Engineering process industries editor, Peter Welander.
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
This is a blog from the trenches – written by engineers who are implementing and upgrading control systems every day across every industry.
Anthony Baker is a fictitious aggregation of experts from Callisto Integration, providing manufacturing consulting and systems integration.
Integrator Guide

Integrator Guide

Search the online Automation Integrator Guide
 

Create New Listing

Visit the System Integrators page to view past winners of Control Engineering's System Integrator of the Year Award and learn how to enter the competition. You will also find more information on system integrators and Control System Integrators Association.

Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Control Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.