INDUSTRY 4.0
Intelligent Assets Report
2
sap.com
INTELLIGENT ASSETS REPORT
INTRODUCTION
Intelligent Assets Intelligent Assets reduce downtime, increase efficiency and empower employees to secure greater resiliency throughout the supply chain
A
cting as the backbone of any Industry 4.0 organisation is the Intelligent Asset. Gathering and analysing data from connected equipment and machinery gives employees greater control over how to increase efficiency, remove unplanned downtime, and reduce overheads by eliminating the need for unnecessary maintenance. Intelligent Assets is one of the four pillars of SAP’s Industry 4.0 initiative, alongside Intelligent Factories, Intelligent Products and Empowered People. Rachel Romanoski, Solutions Manager, Digital Assets, SAP, says: “Intelligent Assets allow businesses to ensure that they have a resilient supply chain, by making sure that the products are where they need to be when they need to be there, regardless of who the end consumer, user, operator, or service provider might be.” Here she explains what an Intelligent Asset is and how it can influence all facets of an organisation’s operation, from design and manufacturing, to delivery.
Intelligent Assets allow businesses to ensure that they have a resilient supply chain
More than half of maintenance leaders report that their companies have strategies to implement Industry 4.0 into plants and processes
Source: The Power of Industry 4.0 in Asset Management report / MPI Group
sap.com
3
SAP INDUSTRY 4.0
EXECUTIVE INTERVIEW
The building blocks of intelligent business Rachel Romanoski, Solutions Manager, Digital Assets, SAP, shares insight on the fundamentals of Intelligent Assets, and how to mitigate risk, downtime and supply chain volatility
A
business’ most “You can do a lot with just a little valuable assets intelligence,” Rachel Romanoski, are those that Solutions Manager, Digital go relatively Assets, SAP says. “Oftentimes unnoticed day to people think Intelligent day. When a machine on a Assets need to be the latest shop floor is fully lubricated, and greatest cutting-edge running at optimum technology. They can be super temperature and pumping advanced, such as leveraging out its required units per hour, it physics-based engineering requires no intervention or conscious simulations to forecast potential thought. The same can be said for the failures, and help mitigate them. But it employee that has all the necessary could be as simple as a temperature information at their fingertips to reading. You can pull a lot of simple RACHEL complete their tasks and dedicate their ROMANOSKI information from most equipment, and time to improvements. by enhancing that data through ancillary The harsh reality is often more solutions and digital capabilities, you complicated. Machines break down, they can create that Intelligent Asset.” must undergo routine maintenance and they can quickly become a disruption CUTTING THE COST OF POOR to productivity and a costly hit to an ASSET MANAGEMENT organisation’s bottom line. Through the Intelligent Assets provide two power of Industry 4.0, Intelligent Assets fundamental benefits for business, promises to change that. Romanoski explains. "First and foremost, 4
sap.com
INTELLIGENT ASSETS REPORT
Intelligent Assets can help mitigate and eliminate unplanned downtime - those catastrophic events that can have major impacts on your supply chain and cost in general.” Allowing companies to take a more proactive approach to routine maintenance and critical repair instantly improves risk mitigation. Traditional asset management is an inexact science, at best, often informed by OEM recommendations, time-based best practices or, in some instances, the heuristic gut instinct of individual engineers and operators. Take the equipment used in an oil field. In this high pressure, technical environment, traditional asset management would usually dictate that maintenance on a centrifugal pump is informed by time-based metrics. Blanket assumptions such as these,
Intelligent Assets allow you to be more lean in using materials for repairs or maintenance however, do not account for a wide variety of variables such as uptime or operating conditions. “With a simple vibration sensor integrated into that pump, operators are able to change the way they look at maintenance, pull information and data, plot trends and analyse that accordingly,” Romanoski says. “The result is a more dynamic and prescriptive understanding of exactly when a pump needs lubricating, for example. The true power of the Intelligent Asset is in changing the basic, reactive emergency work or timebased, planned maintenance and being more prescriptive and tailored to that specific asset and use case. Ultimately, you can reduce the unplanned events that often carry a big price tag.” Intelligent Assets can also alleviate cost leakage. Unnecessary maintenance not only means machines are unproductive and idle when they could be serving customers, it carries hidden costs in the form of labour and the use of expensive spare parts. “Intelligent Assets allow you to be more lean in using materials for repairs or maintenance,” Romanoski says. “Because you have a full understanding sap.com
5
SAP INDUSTRY 4.0
Rachel Romanoski talks about predictive maintenance
of what will be needed and when, you’re able to significantly reduce overhead costs. If we further look at the costs from an overhead perspective, Intelligent Assets also allow businesses to better sweat their assets. Maybe you can consider the lifecycle of the asset and understand whether you can push it a little bit further.”
Intelligent Assets are the building blocks of the Intelligent Factory and Industry 4.0 6
sap.com
EMPOWERING PEOPLE FOR RESILIENT SUPPLY CHAINS The second major opportunity Intelligent Assets provide is in empowering employees to build more resilient and more efficient supply chains. A more informed worker is, after all, a more productive worker. “Not every asset is going to be applying this more prescriptive maintenance strategy,” Romanoski says. "It might be that the best course of action for a low cost item is to run it to failure. Having this information that we collect over time empowers those people to make those better decisions, but also has a trickle down effect to building resiliency and efficiency into the entire supply chain.” At SAP, Intelligent Assets represents the “through line” that connects the four
INTELLIGENT ASSETS REPORT
pillars of its Industry 4.0 approach. The company has a rich heritage in plant maintenance and operation solutions, with decades of data, best practice and market stewardship to draw from. “If we consider Intelligent Products, being able to leverage the information that we get from the assets themselves can actually have an impact on things like quality in that particular product that's being manufactured or produced,” Romanoski says. “This
People think Intelligent Assets need to be the latest and greatest cutting-edge technology […] But it could be as simple as a temperature reading
RACHEL ROMANOSKI TITLE: SOLUTIONS MANAGER, DIGITAL ASSETS Rachel is part of Digital Asset Solution Management, globally responsible for strategy, direction, go-to-market and customer adoption across SAP’s Maintenance & Service solution portfolio. Rachel specializes in business processes across the entire asset lifecycle with a focus on mobile, geospatial, predictive and maintenance management solutions. Rachel has been with SAP for 8 years and while her background and education are in Biomedical Engineering from Texas A&M University, she has spent her career primarily focused on operational excellence within Oil & Gas, Chemical and other asset intensive industries.
allows organisations to start to correlate trends based on how a machine might be performing to what's the actual appropriate yield you might be getting out of that product, for example. “Intelligent Assets are the building blocks of the Intelligent Factory and Industry 4.0, and then ultimately, with Empowered People, it’s about bringing the people, the assets, the processes all together to really drive a resilient supply chain, no matter which of the pillars you’re looking to implement from Industry 4.0”. sap.com
7
SAP INDUSTRY 4.0
INTELLIGENT ASSETS BY THE NUMBERS
Up to
30%
of OEM-recommended maintenance activities happen too frequently Source: IBM
40%
Research suggests up to of all preventive maintenance costs provide only minor improvement in uptime Source: IBM
58%
of maintenance leaders believe Industry 4.0 is a competitive differentiator…
…A further
39% Two thirds
say it will continue to be in the near future
Inability to share equipment information with professionals and applications is seen as the biggest challenge, with
62% of maintenance leaders reporting machine-to-enterprise IT systems communications need improving (4% need an entire network overhaul)
8
sap.com
of maintenance leaders report their companies invested more than 5% of sales into Industry 4.0 strategy implementation in plants and processes in 2019…
95%
… say that figure will increase in the next two years, with 10% expecting a more than 20% rise Source: The Power of Industry 4.0 in Asset Management report / MPI Group
INTELLIGENT ASSETS REPORT
Process in which smart devices/ embedded intelligence have been applied Shipping/Logitistics/ Transportation
1%
27%
42%
30%
Maintenance
0%
28%
43%
29%
26%
41%
28%
5%
Assemby
Packaging
1%
27%
43%
28%
Document Management
1%
25%
46%
28%
by percentage of manufacturers N/A
No application
Some application
Significant application
Impact of Industry 4.0 to plants and processes on productivity and profitability over next 5 years 33%
Increase more than 10 percent
34% 49%
Increase 6-10 percent
41% 14%
Increase 1-5 percent
No change
Decrease
No Industry 4.0 currently or planned
19% 0% 3% 0% 0% 4% 3% by percentage of manufacturers Productivity
Profitability
sap.com
9
SPONSORED BY:
sap.com
POWERED BY: