The advancements with Industry 4.0, be it robotics, machine learning (AI), artificial intelligence (AI), or augmented reality (AR), are getting tangibly involved in the manufacturing industry, making consistency and maintenance a prime requirement. This requirement causes a high demand for proper asset management techniques.
Asset management involves supervising an organization’s assets to optimize relevance and lower risk. Assets include tangible factors like property and equipment, intangible factors like goodwill and intellectual property, and monetary factors like cash and investments. Businesses of all sizes require efficient asset management.
What is the Role of Asset Management in the Manufacturing Industry?
Asset management tailored for the manufacturing industry primarily includes services, programs, and equipment that allow for tracking of assets throughout their complete lifespan, from acquisition to clearance. Asset management is crucial in the manufacturing sector. It includes a structured method of obtaining, operating, maintaining, and disposing of tangible assets. These assets include several of equipment, machinery, tools, and infrastructure necessary for production processes.
Advantages of Effective Asset Management
One significant advantage of asset management is its power to offer a well-organized framework for asset planning. This results in cost-effective solutions that provide adequate service levels throughout the asset’s life while minimizing risk. Let’s have a look at a few other advantages:
1. How asset management maximizes efficiency and minimizes downtime
In the rapidly transforming manufacturing industry, maximizing efficiency and minimizing downtime is important to stay competitive. Efficient asset management is vital to reach these objectives. Let’s learn how:
- Using predictive maintenance
Predictive maintenance forecasts equipment breakdowns and enhances maintenance using data analytics and ML. Manufacturers can recognize early signs of possible failures by observing performance indicators like vibration, temperature, and energy consumption in assets.
Predictive maintenance lets manufacturers schedule maintenance tasks during planned downtime, avoiding sudden breakdowns and maximizing resource distribution. This method focuses on increasing asset accessibility, decreasing downtime, and reducing the likelihood of production interruptions.
- Optimizing inventory management
Well-organized inventory management is vital for the streamlined flow of manufacturing processes. An extensive inventory suggests that capital is unavailable, while a small inventory causes production delays. Manufacturers can leverage data analytics and demand forecasting techniques to optimize inventory levels, showing the accessibility of critical spare parts and lowering the risk of either stockouts or overstocking.
Integrating a computerized maintenance management system (CMMS) with the Enterprise Resource Planning (ERP) system helps manufacturers streamline inventory processes. Automated recorder points, inventory tracking, and methodical procurement processes aid with effective asset management and time- and labor-saving production workflows.
- Real-time data and integrating Internet of Things (IoT)
Real-time information is crucial for managing assets in manufacturing plants. Integrating IoT devices and sensors with asset management systems allows constant monitoring of asset performance, environmental conditions, and energy usage.
Manufacturers can utilize real-time data to make knowledgeable decisions, detect abnormalities, and maximize asset use. Thus, they can enhance production processes and take necessary maintenance action requirements.
2. How asset management improves profitability
Effective asset optimization techniques lead to cost savings and improve profits for the organization. Proper techniques should be used to boost asset management:
- Optimized asset utilization
Manufacturers can avoid irrelevant maintenance (repair and replacement) costs by optimizing the utilization of their assets. Correct asset management allows manufacturers to use proactive maintenance approaches, reducing the chance of expensive failures while extending the life of assets.
- Improved quality control
Proper asset management means they receive routine inspection, calibration, and maintenance which in turn ensures consistent quality. Manufacturers can drastically reduce the number of defects and waste costs. At the same time, customer satisfaction can be improved since potential problems are identified and taken care of in the early stages.
Why do Manufacturers Depend on Industrial Asset Management (IAM) Tools?
Even with numerous advantages, businesses may still doubt the importance of assessing management, especially if they already utilize a system like ERP. Nevertheless, this is a widely held misunderstanding, therefore it is crucial to understand the distinctions between IAM and ERP.
Companies can gain a comprehensive overview by opting for a single platform to handle tangible assets. Additionally, an appropriate management system can integrate with logistics allowing individuals to track inventory instantly. It can also assist in allocating equipment to individuals and teams and automating maintenance schedules to reduce downtime.
While an ERP system can streamline company operations, an efficient IAM platform automates the practical tasks of managing a manufacturing business daily. ERP software can assist in overseeing business operations, while asset management software can aid in controlling the physical maintenance, procurement, and implementation processes.
Technologies to Track and Monitor Assets
Modern asset tracking requires the use of hardware and software to monitor asset movement and obtain real-time location information. Hardware consists of tracking technology, and software often consists of asset-tracking systems and programs.
- Barcodes and QR codes: Barcodes are widely accepted as the norm for monitoring assets. Barcode labels are made up of parallel lines that encode information and come in different widths, spacing, and sizes. They are connected to more significant physical objects and can assign a distinct identifier to each one. QR codes have replaced traditional barcodes as the ‘two-dimensional’ option. They can be scanned from any direction and have greater data capacity than a regular barcode.
- LPWAN with IoT-enabled devices: An LPWAN is a wireless communication network that enables long-distance communication with minimum power consumption, which is a great advantage. LPWAN technology efficiency can lengthen the battery lifespan of an IoT device. Wireless WAN links individuals with organizations, but LPWAN links IoT devices with sensor information.
- RFID: RFID technology is similar to barcode technology, but it operates at a quicker pace than the barcode scanner. Radio waves are activated to monitor details about assets, and digital data can be encoded in RFID tags. RFID technology involves reading data from a tag using a reader device and storing it in a database. It is better protected, with a waterproof layer for added security.
- BLE: BLE can be utilized in various ways to achieve the goal of asset tracking. Initially, mobile trackers that emit Bluetooth signals can be used through smartphones, which are then detected with their Bluetooth activated.
- GPS: GPS asset trackers receive and send information via satellites and cell networks to locate and track assets. They are best known for their high level of accuracy, capability to track assets worldwide, and provision of various connectivity options.
Implementing Asset Management Strategies
Effective management of assets is vital for optimal performance, durability, and cost control. Here are some essential strategies to consider:
- Reactive maintenance (breakdown maintenance)
- Also known as ‘run-to-failure’, this approach comprises fixing things only when they suddenly break down.
- It’s suitable for equipment that isn’t necessary for operations or has a low cost.
- While it requires minimal planning, mismanaged reactive maintenance can halt production when critical equipment fails. Immediate access to necessary parts becomes crucial to avoid skyrocketing expedited shipping costs.
- However, relying solely on reactive maintenance can increase downtime and overall maintenance expenses.
- Preventive maintenance (scheduled)
- Often called as ‘proactive maintenance’, this strategy requires periodically pausing asset operations for inspections or repairs based on set intervals (either time-based or event-driven).
- The core objective is to improve an asset’s lifespan and avoid potential malfunctions.
- Many organizations use CMMS software to automate scheduling and safeguard the availability of necessary parts and resources.
- However, without consistent oversight and updates, there’s a risk of ‘PM creep’, where technicians are overwhelmed with redundant tasks, draining organizational resources. Overdoing preventive tasks can also lead to breakdowns after maintenance.
- Reliability-centered maintenance (RCM)
- RCM investigates failure modes to determine the best maintenance strategy for each asset.
- It takes the factors of criticality, consequences of failure, and cost-effectiveness into consideration.
- RCM’s aim is to optimize maintenance efforts by adapting them to specific asset needs.
- Although it requires additional upfront analysis, it has the highest reliability and cost savings in the long run.
Data-driven decision making
In earlier times, asset management was seen as more of a creative practice than a technical one. Yet, the emergence of big data in the past few years has changed this notion. By making the best use of the potential of data analytics, companies gain a more in-depth understanding of their resources and how they need to be used. This shift towards data-driven decision-making enhances the quality of decisions, grows operational efficiency, and leads to substantial cost savings for companies.
Data will become more vital in asset management as we progress. Two trends stand out as especially important in this context. First, progress in sensor and data storage technology will boost data quality. Second, progress in ML and AI is enhancing data utilization. Together, these patterns will aid us in making better choices about handling assets.
Conclusion
Manufacturing, like any other industry, is concerned about the security of its assets. Monitoring and handling them in an optimum manner benefits organizations in this sector. The best of their manufacturing marketing strategy can be brought into the picture when the latest asset technologies are known and properly implemented. Doing so will give a smooth flow to the business’ procedures and a clear profit.
Author Bio
My name is Michel Ethan, and I am a Marketing Manager at Blue Mail Media, Inc. I have over 13 years of experience in B2B marketing, communications, and brand marketing, and I excel at developing data-driven marketing plans that never fail to deliver.
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