Asset Management and Maintenance by James Allt-Graham
Through the life of an asset the maintenance costs can vary dramatically but typically range between 2% and 5% of the purchase costs. Over time, once upgrades are implemented, it is common for the cumulative cost of maintenance to be greater than the original purchase cost. Depending upon the nature of the asset, the need to undertake preventative maintenance, respond to corrective maintenance needs and plan for minor and major upgrades in functionality can create complex planning and supply chain challenges.
What are maintenance management systems?
Maintenance management systems have assisted to drive efficiencies in the provision of maintenance services. The ability to plan corrective maintenance tasks, schedule skilled labour and arrange for spare parts and consumables to be available can be managed in a more dynamic environment, which enables asset downtime to be minimised and utilisation of maintenance labour and equipment to be optimised.
Health and Usage Monitoring Systems
However, we see a significant opportunity to take this further. In our experience, the vast majority of assets are still maintained based on time-based routines. Whilst the ‘Internet of Things’ (‘IOT’) has enabled a range of devices that are connected to the internet to monitor performance, the usage of these is still low. Commonly called HUMS devices (‘Health and Usage Monitoring Systems’) these enable asset usage and underlying condition (e.g. temperature, oil condition, fluid levels, weight etc) to be monitored. The maintenance tasks are only initiated when the usage or condition requires it, rather than simpler time-based routines. This has the following benefits:
- Maintenance is conducted when needed. Typically, this is less frequently but for high use assets, it may be more frequently to reduce the risk / impact of breakdown;
- Reduced use of materials like lubricants as changes are made when required not due to time;
- Increased maintenance up time; and
- Improved asset reliability.
Environmental impacts of HUMS uptake
Increasingly, we are seeing additional benefits being derived that relate to the carbon / environmental impact of maintaining and operating these assets. By ensuring they are running efficiently (via HUMS data) and only maintained and repaired when needed, the overall cost and material consumed in reduced and the associated environmental footprint. This can be substantial for many asset types.
Why is uptake relatively slow?
There are some key challenges that need to be overcome to derive these benefits:
- Overall integration of condition data into the maintenance management system (and triggering alerts to schedule maintenance); and
- The impact of more sporadic maintenance activity rather than more predictable time-based planning and scheduling. An uplift in planning capabilities including management of the supply chain is required.
An overarching plan of the benefits, IT integrations and impact on the maintenance planning methodology and approach needs to be synchronised.
Case study
Aviation has been a leader in the use of HUMS data to inform maintenance. For example, engine sensors monitor all aspects of their operation and report performance and exceptions to expected performance conditions. This data is used to inform maintenance routines and to work with the Equipment Manufacturer to develop enhancements to improve performance and solve corrective maintenance needs.
Numerous technologies are available and are being deployed to improve safety and performance.
Next steps
In terms of next steps, we would advise clients who believe there are opportunities in their business to improve the efficiency and effectiveness of maintenance to adopt the following key steps.
1. Undertake a high-level diagnostic of opportunities and the root causes. Develop a comprehensive understanding of what could be changed and the benefits that it would create. If this looks significant, move forward with a cross functional team in your business.
2. Consider external advice to help refine the business case, identify options for the future state. The ability to call things ‘as they are’ and bring experience from other organisations can help to avoid ‘rebuilding the wheel’.
3. Develop a transition plan with clear short, medium and longer term benefits. Ensure the plan addresses issues relating to people (and organisational design), processes, technology, data and infrastructure.
4. Build a team to execute and share your success as you go!
Contact us today, trace. your supply chain and procurement consulting partner.
James Allt-Graham
Partner
Reference
Surender, S. (2024) Unlocking the Potential of Aviation Safety: How Aircraft Health and Usage Monitoring Systems (HUMS) are Revolutionizing the Industry, Markets and Markets.
